Spouses Diosdado Nuguid v. Court of Appeals

Summary

This Supreme Court case involved a property ownership dispute over a 231 square meter lot in Orani, Bataan. The original owners' heirs allegedly sold the entire property to petitioners in 1961, but private respondents claimed half was previously sold to their ancestor Juliana Salazar in 1931 and that the later deed was forged. The trial court dismissed the complaint, but the Court of Appeals reversed and declared private respondents owners of half the property. The Supreme Court reinstated the trial court decision, applying Article 1544 of the Civil Code on double sales. Since the first sale was unregistered while the second sale to petitioners was registered and made in good faith, the Supreme Court ruled petitioners should retain ownership. The Court found insufficient evidence of forgery and emphasized that good faith purchasers who register their title are protected under Philippine property law.