G.R. No. 192916 Case Digest

G.R. No. 192916, October 11, 2010

Manuel Echavez

vs Dozen Construction and Development Corp.

Ponente: Brion

Facts:

Vicente Echavez was the absolute owner of several lots in Cebu City. 1985, Vicente donated some lots to Manuel Echavez through a deed of donation Mortis Causa, which was accepted by Manuel.

In March 1986, Vicente executed a contract to sell the same lots in favor of Dozen Corp. In October 1986, they executed two deeds of absolute sale covering the lots in the contract to sell.

November 1986, Vicente died. Cabanig, Vicente's nephew filed a petition for the settlement of Vicente's intestate estate. Manuel then filed a petition to approve the donation mortis causa and to annul the contract of sale between Vicente and Dozen Corp.

The RTC dismissed Manuel's petition. The RTC found that the execution of a Contract to Sell in favor of Dozen Corporation, after Vicente had donated the lots to Manuel, was an equivocal act that revoked the donation.  

The Court of Appeals (CA) affirmed the RTC’s decision. The CA held that since the donation in favor of Manuel was a donation mortis causa, compliance with the formalities for the validity of wills should have been observed.  The CA found that the deed of donation did not contain an attestation clause and was therefore void.

Manuel claims that the CA should have applied the rule on substantial compliance in the construction of a will to Vicente’s donation mortis causa.  He insists that the strict construction of a will was not warranted in the absence of any indication of bad faith, fraud, or substitution in the execution of the Deed of Donation Mortis Causa.  He argues that the CA ignored the Acknowledgment portion of the deed of donation, which contains the “import and purpose” of the attestation clause required in the execution of wills. 

Ruling:

The CA correctly declared that a donation mortis causa must comply with the formalities prescribed by law for the validity of wills, “otherwise, the donation is void and would produce no effect.”  Articles 805 and 806 of the Civil Code should have been applied.

An acknowledgment is made by one executing a deed, declaring before a competent officer or court that the deed or act is his own.  On the other hand, the attestation of a will refers to the act of the instrumental witnesses themselves who certify to the execution of the instrument before them and to the manner of its execution.