FACTS:

The petitioner, Ignacio Wong, and the private respondent, Manuel Mercado, are involved in a dispute over the possession of a land in Colonga, Sta. Maria, Davao del Sur. The land in question is covered by Transfer Certificate of Title No. (T-4244) T-972, acquired by Mercado from William Giger through a deed of sale with a right to repurchase executed in 1972. In 1973, an additional amount of P2,500 was requested by Giger from Mercado, which led to the execution of a new Pacto de Retro Sale. Mercado, a businessman and storekeeper, harvested only the coconut fruits on the land and paid the taxes on behalf of Giger. He did not reside on the land and did not place any person or sign indicating his possession.

In August 1976, Wong visited the land to determine if there were other claimants besides the owner, but found none. Subsequently, Wong purchased the land from Giger and his wife Cecilia Valenzuela. Wong declared the land for taxation purposes under his name, tried to register the pacto de retro sale, and placed laborers on the land, built a small farm house, and fenced the boundaries. In September 1976, Mercado went to the land to make copra and this was reported to the police. Wong ordered the harvesting of coconuts but received a copy of Mercado's complaint for forcible entry on November 29, 1976, which led to the present case.

The Municipal Court of Sta. Maria, Davao del Sur initially ruled in favor of Wong, finding that he had prior, actual, and continuous physical possession of the disputed property. However, on appeal, the Court of First Instance reversed the decision by ruling in favor of Mercado. The Court found Mercado to have taken possession of the property earlier and declared Wong as an intruder. The Court ordered Wong to return possession of the land to Mercado and pay a monthly rental of P400.00 from August 1976 until the property is returned. Petitioner Wong filed a petition for review on certiorari with the Court of Appeals, and the case was certified to the Supreme Court as it involves solely a question of law.

ISSUES:

1. Whether plaintiff Manuel Mercado had prior, actual and continuous physical possession of the disputed property.

2. Whether defendant Ignacio Wong is considered an intruder.

RULING:

1. The Court of First Instance ruled in favor of plaintiff Manuel Mercado, finding that he had taken possession of the property earlier in point of time.

2. Defendant Ignacio Wong is considered an intruder and was ordered to return the possession of the land to the plaintiff.

PRINCIPLES:

• Possession is a material fact that can be proved by testimonial and documentary evidence.

• Prior, actual, and continuous physical possession of the disputed property is a determining factor in forcible entry cases.

• An intruder is someone who has no legal right to possess and occupy the property.