Pan Pacific v. CA
Pan Pacific v. CA
Pan Pacific v. CA
sale of the subject lot to Cruz, as the sale had already been
COURT OF APPEALS and NICOLAS CAPISTRANO consummated.
G.R. No. 125283 February 10, 2006
Capistrano’s contention: Capistrano asserts that the legal
On 10 September 1982, Capistrano executed a Special Power of presumption of regularity of public documents does not obtain
Attorney authorizing Cruz to mortgage the subject lot in favor of in this case as the documents in question were not properly
Associated Bank (the Bank) as security for the latter's loan notarized. He adds that the parties never appeared before the
accommodation. notary public as in fact the deed had only been delivered by
Capistrano to the house of Cruz's mother.
Shortly, by virtue of the SPA, Cruz obtained a loan in the
amount of P500,000.00 from the Bank. Furthermore, Capistrano maintains that his spouse's signature
on the Marital Consent is a forgery as it was virtually impossible
for her to have signed the same.
Capistrano and Cruz then executed a letter-agreement dated 23
September 1982 whereby Cruz agreed to buy the subject lot for
the price of P350,000.00. Issue: Whether or not Capistrano failed to present evidence of
the forgery that is enough to overcome the presumption of
authenticity. YES
On 15 March 1983, Capistrano executed the Deed of Absolute
Sale over the subject lot in favor of Cruz. Two (2) days later, on
17 March 1983, Notary Public Vicente J. Benedicto (Benedicto) A notarized document carries the evidentiary weight conferred
notarized the deed. However, it was earlier or on 9 March upon it with respect to its due execution, and it has in its favor
1983 that Capistrano's wife, Josefa Borromeo the presumption of regularity which may only be rebutted by
Capistrano, signed the Marital Consent evidencing her evidence so clear, strong and convincing as to exclude all
conformity in advance to the sale. The Marital Consent controversy as to the falsity of the certificate. Absent such, the
was also sworn to before Benedicto. presumption must be upheld. The burden of proof to overcome
the presumption of due execution of a notarial document lies on
the one contesting the same. Furthermore, an allegation of
In May 1987, with the mortgage on the subject lot then being in forgery must be proved by clear and convincing evidence, and
danger of foreclosure by the Bank, Cruz filed a case with the RTC whoever alleges it has the burden of proving the same.
of Manila to enjoin the foreclosure.
Evidently, as he impugns the genuineness of the documents,
In 1988, the Bank executed a Cancellation of Real Estate Capistrano has the burden of making out a clear-cut
Mortgage. On even date, Cruz executed a Deed of Absolute Sale case that the documents are bogus. However, Capistrano
over the subject lot in favor of Pan Pacific, attaching thereto the failed to present evidence of the forgery that is enough to
previous Deed of Absolute Sale executed by Capistrano in favor overcome the presumption of authenticity.
of Cruz.
To support the allegation of the spuriousness of his signature on
On 20 October 1988, Capistrano filed a Revocation of Special the Deed of Absolute Sale and that of his wife on the Marital
Power of Attorney with the Register of Deeds of Manila. Consent, Capistrano relied heavily on his bare denial, at the
same time taking sanctuary behind other circumstances which
Pan Pacific, which bought the subject lot from the Cruz supposedly cast doubt on the authenticity of the documents.
spouses, was allowed to intervene in the proceedings Capistrano did not bother to present corroborating witnesses
and joined Cruz, et al. much less an independent expert witness who could declare with
authority and objectivity that the challenged signatures are
On 24 April 1992, a Decision was rendered by the trial court in forged.
favor of Capistrano on both causes of action
Corollarily, he who disavows the authenticity of his signature on
To arrive at the conclusion that the first Deed of a public document bears the responsibility to present evidence
Absolute Sale and the Marital Consent are spurious, to that effect. Mere disclaimer is not sufficient. At the very
the trial court mainly relied on Capistrano's disavowal least, he should present corroborating witnesses to prove his
of his signature and that of his wife's, together with assertion. At best, he should present an expert witness.
extrinsic factors which in its opinion evinced the
spuriousness. The courts may have forgotten that on Capistrano lies the
burden to prove with clear and convincing evidence that the
Pan Pacific and the Cruz spouses contended that Capistrano notarized documents are spurious. Nothing in law or
failed to present clear and convincing evidence to overturn the jurisprudence reposes on Cruz the obligation to prove that the
presumption of regularity of public documents like the documents are genuine and duly executed. Hence it is not
documents in question. incumbent upon Cruz to call the notary public or an expert
witness. In contrast, Capistrano should have called the expert
witness, the notary public himself or the witnesses to the
Pan Pacific’s contention: Pan Pacific filed the instant document to prove his contention that he never signed the deed
Petition solely concerning the first cause of action in the of sale, that its subscribing witnesses never saw him sign the
Amended Complaint. Pan Pacific contends that the genuineness same, and that he never appeared before the notary public
and due execution of the Deed of Absolute Sale and Marital before whom the acknowledgment was made.
Consent cannot be overridden by the self-serving testimony of
Capistrano. It stresses that the trial court cannot rely on
irrelevant extrinsic factors to rule against the genuineness of the In fact, there is no evidence that the notarization of the
deed. Finally, it points out that Capistrano cannot contest the documents did not take place. All that Capistrano could say on
this matter was that he had not seen Benedicto, the notary
public.