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Frenzel Vs Catito GR143958

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FRENZEL v.

CATITO
GR No. 143958
July 11, 2003

Doctrine: Void for being against public policy; - a contract which violates the Constitution
and the laws is void and vests no rights and creates no obligations. It does not produce any
legal effect.

FACTS:

Petitioner Alfred Fritz Frenzel is an Australian citizen of German descent who was
married to Teresita Santos, a Filipino citizen. He works as a pilot for New Guinea Airlines. On
the other hand, private respondent Ederlina P. Catito was married to Klaus Muller, a German
national. She worked as a masseuse in the King’s Cross nightclub in Sydney, Australia. The
two met when Alfred went on a vacation in Sydney. They met again and this time, Alfred was
able to convince Ederlina to stop working and to go back to the Philippines.

When she returned to the Philippines, she was given money by Alfred to put up a
beauty salon. Later on, he also gave money to her to be able to purchase a house and lot in
San Francisco del Monte, Quezon City. Since he was aware that aliens were prohibited to
purchase lands, he agreed to have Ederlina as the sole vendee. Later also, they opened two
bank accounts with the Hong Kong and Shanghai Banking Corporation in Kowloon, Hong
Kong. In addition, there were subsequent purchases of other real and personal properties.
These were made on the anticipation on the part of Alfred that he and Ederlina will get
married soon. However, this failed to materialize because of the fact that Ederlina was still
married to Klaus. Ederlina failed to secure a divorce from Klaus. This exasperated Alfred and
eventually their relationship started to fade. Thus, Alfred filed a complaint before the RTC of
Davao City for recovery of real and personal properties. He demanded from Ederlina that
she return all the money that were used to purchase the properties and also the properties
which were bought, especially the house and lot and three other lots. However, the
complaint of Alfred was dismissed by the RTC. On appeal, the Court of Appeals affirmed the
decision of the RTC in toto.

ISSUE:

Whether or not Alfred is entitled to recover the said properties.

RULING:

No. The contention of petitioner Frenzel that to bar him from recovering the properties
would be in violation of Article 22 of the Civil Code on unjust enrichment holds no water. It
must be remembered that a contract which violates the Constitution and the laws is void
and vests no rights and creates no obligations. It does not produce any legal effect. His
reliance on Article 22 is misplaced because in this case, the action is proscribed by the
Constitution or the parties are in pari delicto. This is founded on the general principles of
public policy. It must be remembered that Alfred knew all along that he was disqualified
from purchasing lands. His contention that he entered into the transaction because he was
expecting that he and Ederlina will get married in the future is not a valid one. He also knew
that he cannot get married to Ederlina because he still had a valid existing marriage with
Teresita Santos

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