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EDUARDO G. AGTARAP v. SEBASTIAN AGTARAP

FACTS:

The case involves the consolidated petitions for review on certiorari of petitioners Sebastian G. Agtarap and Eduardo G. Agtarap. Eduardo filed a petition for the judicial settlement of the estate of his deceased father, Joaquin Agtarap. Eduardo alleged that Joaquin died intestate, leaving behind two parcels of land in Pasay City. Joaquin had two marriages, first with Lucia Garcia and second with Caridad Garcia. Eduardo requested his appointment as special administrator and the confirmation and declaration of the compulsory heirs entitled to participate in the estate. Abelardo Dagoro claimed to be the surviving husband of Mercedes, one of Joaquin's children with Caridad, and filed an intervention. The RTC appointed Eduardo as regular administrator and issued an Order of Partition stating that the estate is now ripe for distribution among the heirs. The Administrator, Eduardo Agtarap, rendered an accounting of the administration, which included the real properties left by Joaquin Agtarap.

On October 23, 2000, the RTC issued an Order of Partition, distributing the estate. The RTC considered the properties owned by Joaquin Agtarap and his deceased wife, Lucia Mendietta, as conjugal properties. The net assets of the estate amounted to P14,177,500.00, to be distributed among the heirs. The conjugal share of Caridad Agtarap was to be divided equally between her and the compulsory heirs. Milagros Agtarap's share was to be divided equally among Teresa Agtarap, Joseph Agtarap, Walter de Santos, Eduardo Agtarap, and Sebastian Agtarap. The compulsory heirs of Jose Agtarap and Milagros Agtarap were also identified. Eduardo, Sebastian, and oppositors Joseph and Teresa filed motions for reconsideration, which were denied by the RTC. Eduardo and Sebastian appealed to the Court of Appeals (CA), which dismissed the appeals for lack of merit and affirmed the RTC's resolution.

The estate of Joaquin Agtarap consists of several properties, which are subject to distribution according to the terms of Joaquin's Last Will and Testament. Joaquin's surviving wife, Caridad Garcia, is entitled to 1/6 of the estate. Since Caridad died, her share is inherited by her children, namely Mercedes Agtarap, Sebastian Agtarap, and Eduardo Agtarap. Milagros Agtarap is entitled to 1/6 of the estate, but since she died without issue, her inheritance is divided among Gloria, Joseph, and Teresa. Jose Agtarap is entitled to 1/6 of the estate, but since he died, his inheritance is acquired by his wife Priscilla and their children. Mercedes, Sebastian, and Eduardo each receive 1/6 of the estate.

Sebastian and Eduardo filed motions for reconsideration after the Court of Appeals denied their claims. The petitions raised various errors committed by the appellate court. Sebastian disputed the legitimacy of Joseph and Teresa as heirs and argued that the certificates of title of the properties should be subject to a separate proceeding for the determination of ownership. Eduardo argued that the settlement of multiple estates in one proceeding went against the principle of settling only one estate in one proceeding.

Joaquin Agtarap was married twice. His first marriage was to Lucia, and his second marriage was to Caridad Garcia. Joaquin had four children with Lucia and two children with Caridad. After Joaquin's death, Eduardo filed a petition in the Regional Trial Court (RTC) for the issuance of letters of administration to settle the estate of Joaquin. However, Gloria and Milagros opposed the petition, claiming that there is a pending proceeding in another court for the probate of Milagros' will, which bequeaths all her share in Joaquin's estate to Eduardo. The RTC granted Eduardo's petition and issued letters of administration to him. Eduardo appealed the RTC's decision to the Court of Appeals (CA) and argued that the CA erred in affirming that the bulk of the real properties in question belonged to Joaquin's first marriage to Lucia. Eduardo claimed that the RTC did not have the authority to determine questions of ownership and that they should have been resolved by a separate court. These issues and arguments raised by Eduardo were brought before the Supreme Court for resolution.

ISSUES:

  1. Whether the properties covered by TCT Nos. 38254 and 38255 belonged to the conjugal partnership of Joaquin Agtarap and his first wife, Lucia Garcia Mendietta.

  2. Whether the legitimacy of Joseph and Teresa as heirs of the estate should have been questioned and established with competent evidence.

  3. Whether the Court of Appeals erred in distributing the estate of Milagros Agtarap despite the existence of her last will and testament that had not been probated.

RULING:

  1. The RTC, as an intestate court, had jurisdiction to resolve the ownership issue of the properties. The properties belonged to the conjugal partnership of Joaquin and Lucia, and were properly included in Joaquin's estate for distribution among his heirs, including those from his first marriage.

  2. The legitimacy of Joseph and Teresa as heirs was upheld. The RTC found them to be the legitimate children of Jose, based on the evidence and prior admissions by the other parties.

  3. The Court of Appeals erred in distributing the share of Milagros Agtarap in Joaquin's estate because her last will and testament, which bequeathed her share to Eduardo, had not been probated. The distribution of Milagros' share should await the final determination of the probate of her will.

PRINCIPLES:

  • Limited Jurisdiction of Probate Courts Probate or intestate courts generally do not extend to the determination of ownership of properties claimed to be part of the estate, except when it affects only the heirs themselves and does not impair the rights of third parties.

  • Liquidation of Community Property The community property shall be inventoried, administered, and liquidated upon the death of one spouse in the testate or intestate proceedings of the deceased spouse.

  • Torrens System and Ownership Registration of property in the name of a married person with the Torrens system does not necessarily prove conjugal ownership; it merely indicates civil status.

  • Inheritance Under Rule 90 The residue of an estate is assigned to lawful heirs only after the payment of estate obligations.

  • Representation in Estate Proceedings Compulsory heirs' representatives can participate in estate proceedings when the heirs themselves are deceased, provided they fall within the legal bounds of representation.