Cornelia Clanor Vda. de Portugal v. Intermediate Appellate Court

Summary

This family property dispute involved the validity of a deed of sale allegedly transferring residential and agricultural land from spouses Pascual Portugal and Cornelia Clanor to their sons Hugo and Emiliano Portugal. Hugo borrowed the title certificates in 1967 ostensibly to secure a loan but later produced a new title based on a purported sale deed. The Supreme Court declared the deed void ab initio for lack of consideration, rejecting the Intermediate Appellate Court's finding that the action had prescribed. The Court emphasized that actions for declaration of inexistence of contracts do not prescribe, and even if treated as reconveyance based on constructive trust, the 10-year prescription period had not elapsed. The decision reinforced principles regarding void contracts, prescription periods, and credibility of witnesses in property disputes.