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    Suntay v. CA

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    iwamawi
    Federico owned a rice mill property and wanted to become a contractor-miller for NARIC but his application was rejected due to unpaid loans. He allowed his nephew Rafael to apply instead and they executed a deed of sale transferring the property to Rafael for 20,000 pesos. After 3 months, Federico repurchased the property through a real estate mortgage. Rafael refused to transfer the title back, claiming the reconveyance was payment for his legal services. The Court ruled the sale was simulated and void, as the sale and repurchase occurred at the same price, the consideration was grossly inadequate, and Rafael did not take possession or declare ownership of the property.

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    Suntay v. CA

    Uploaded by

    iwamawi
    2K views1 page
    Federico owned a rice mill property and wanted to become a contractor-miller for NARIC but his application was rejected due to unpaid loans. He allowed his nephew Rafael to apply instead and they executed a deed of sale transferring the property to Rafael for 20,000 pesos. After 3 months, Federico repurchased the property through a real estate mortgage. Rafael refused to transfer the title back, claiming the reconveyance was payment for his legal services. The Court ruled the sale was simulated and void, as the sale and repurchase occurred at the same price, the consideration was grossly inadequate, and Rafael did not take possession or declare ownership of the property.

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    Federico owned a rice mill property and wanted to become a contractor-miller for NARIC but his application was rejected due to unpaid loans. He allowed his nephew Rafael to apply instead and they executed a deed of sale transferring the property to Rafael for 20,000 pesos. After 3 months, Federico repurchased the property through a real estate mortgage. Rafael refused to transfer the title back, claiming the reconveyance was payment for his legal services. The Court ruled the sale was simulated and void, as the sale and repurchase occurred at the same price, the consideration was grossly inadequate, and Rafael did not take possession or declare ownership of the property.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views1 page

    Suntay v. CA

    Uploaded by

    iwamawi
    Federico owned a rice mill property and wanted to become a contractor-miller for NARIC but his application was rejected due to unpaid loans. He allowed his nephew Rafael to apply instead and they executed a deed of sale transferring the property to Rafael for 20,000 pesos. After 3 months, Federico repurchased the property through a real estate mortgage. Rafael refused to transfer the title back, claiming the reconveyance was payment for his legal services. The Court ruled the sale was simulated and void, as the sale and repurchase occurred at the same price, the consideration was grossly inadequate, and Rafael did not take possession or declare ownership of the property.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    RAFAEL G. SUNTAY, substituted by his heirs, namely: ROSARIO, RAFAEL, JR.

    , APOLINARIO,
    RAYMUND, MARIA VICTORIA, MARIA ROSARIO and MARIA LOURDES, all surnamed SUNTAY,
    petitioners,vs.THE HON. COURT OF APPEALS and FEDERICO C. SUNTAY, respondents.
    G.R. No. 114950 December 19, 1995
    HERMOSISIMA, JR., J.

    Facts:

    Federico owns a rice mill property in Bulacan. He wanted to become a contractor-miller of


    National Rice and Com Corporation (NARIC). His application was rejected due to pending unpaid
    loans. To circumvent it, he allowed his nephew respondent to make the application in his behalf.
    They executed a deed of sale wherein the rice mill property was transferred to respondent for P
    20,000.00. After 3 months, it was repurchase by Federico. However, the document for the repurchase
    was not a deed of sale but a real estate mortgage. When Federico demanded respondent to transfer
    the tile, he refused alleging that the reconveyance was a dacion en pago in lieu of attorneys fees in
    consideration of the legal services rendered by respondent as legal counsel for his uncles business.
    Federico contends that the sale was merely simulated for the purpose of accommodation.

    Issue: WON the contract was simulated

    Held: Yes.

    The Court held that the deed of sale was simulated and thus null and void. The sale that was
    made was never intended to have a binding and legal effect between them. The Court considered the
    history, relationship of trust, intimacy, and interdependence between the parties, which would point
    out an unmistakable token of simulation. There was also the case that the sale and repurchase was
    closely executed at exactly the same price. In addition, the amount in consideration was grossly
    inadequate given the location and value of the property. It also considered that Federico was liquid
    enough to pay Rafael for his legal fees that he doesnt need to transfer an income-producing property.
    Also, Raphael did not take exclusive possession of the property as alleged and did not declare it as
    part of his assets in his statement of assets and liabilities.

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