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ALEXANDER V. SPOUSES ESCALONA [G.R. No. 256141, July 19, 2022]

 CASE DIGEST

ALEXANDER V. SPOUSES ESCALONA

G.R. No. 256141, [July 19, 2022]

EN BANC, LOPEZ, M.V

 

Conjugal properties; Alienation after the effectivity of Family Code; Spouse' Written Consent

 

Any alienation or encumbrance of the conjugal property concluded after the effectivity of the Family Code  requires the other spouse's written consent or a court order allowing the transaction, otherwise, the disposition is void. 

Spouses Jorge and Hilaria Escalona were married on November 14, 1960, or during the effectivity of the Civil Code, owned two unregistered parcels of land. During the effectivity of the Family Code, one was transferred to their son Reygan, through the consent of Jorge. Reygan then sold both parcels to Belinda Alexander, claiming validity on the assertion that Jorge exclusively owned the lots. 

The Escalonas contested the sale, alleging Reygan's lack of authority and Hilaria's non-consent. Escalonas filed a complaint for annulment of documents against Belinda and Reygan in the RTC, which dismissed the complaint as time-barred and upheld the contracts. On appeal they argue that prescription do not apply in action to nullify void contracts.

 

Whether action to nullify the transaction has already prescribed. 

NO. Any alienation or encumbrance of the conjugal property concluded after the effectivity of the Family Code requires the other spouse's written consent or a court order allowing the transaction, otherwise, the disposition is void. The action to nullify the void alienation or encumbrance of the conjugal property, without authority of the court or the written consent of the other spouse, is imprescriptible.

 

Whether the alienation the land is void under Article 124 of the Family Code because it was made without Hilaria's consent. 

YES. The Court declared the transaction void and held that the applicable law is Article 124 of the Family Code, not Article 173 of the Civil Code, because the alienation of the conjugal property transpired after the effectivity of the Family Code even if the spouses were married under the Civil Code. Article 124, Family Code, applies to sale of conjugal properties made after the effectivity of the Family Code. The absence of the written consent of one spouse renders the alienation void. Consequently, Spouses Escalona remained the lawful owners of the land. The Court likewise agrees with the findings that Belinda can hardly qualify as a buyer in good faith as she merely stepped into the shoes of Reygan whose rights were anchored on ineffective instruments.


Summary of the applicable laws and jurisprudence in transactions involving alienation or encumbrance of conjugal properties:

(1) The alienation or encumbrance of the conjugal property, without the wife's consent, made before the effectivity of the Family Code, is not void but merely voidable. The wife may file an action for annulment of contract within 10 years from the transaction; and 

(2) The alienation or encumbrance of the conjugal property, without the authority of the court or the written consent of the other spouse, made after the effectivity of the Family Code is void. 

 

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