7. PCIB vs. Escolin

8/11/2019 7. PCIB vs. Escolin

1/106

Republic of the PhilippinesSUPREME COURT

Manila

EN BANC

G.R. Nos. L-27860 and L-27896 March 29, 197

P!"L"PP"NE COMMERC"#L #N$ "N$USTR"#L %#N&, #d'(n(s)ra)or o* )h+ T+s)a)+Es)a)+ o* Char+s N+)on !od+s /S. Proc. No. 1672 o* )h+ Cor) o* (rs)

"ns)anc+ o* "o(o3, petitioner,vs.

T!E !ONOR#%LE 4EN"C"O ESCOL"N, Pr+s(d(n 5d+ o* )h+ Cor) o* (rs) "ns)anc+o* "o(o, %ranch "", and #4EL"N# #. M#GNO, respondents.

G.R. Nos. L-2796 L-2797 March 29, 197

TEST#TE EST#TE O T!E L#TE L"NN"E 5#NE !O$GES /S. Proc. No. 1073. TEST#TEEST#TE O T!E L#TE C!#RLES NETON !O$GES /S. Proc. No. 16723. P!"L"PP"NE

COMMERC"#L #N$ "N$USTR"#L %#N&,administrator-appellant,vs.

LORENO C#RLES, 5OSE P#%L"CO, #LRE$O C#TE$R#L, S#L4#$OR GUM#N,%ELCES#R C#US"NG, LOREN"# %#RR"$O, PUR""C#C"ON CORON#$O, GR#C"#NOLUCERO, #R"TEO T!OM#S 5#M"R, MEL:U"#$ES %#T"S#N#N, PEP"TO ";ULORES,

ESPER"$"ON P#RT"S#L#, "N"RE$O ESP#$#, ROS#R"O #L"NG#S#, #$EL#PREM#;LON, S#NT"#GO P#C#ONS"S, and #4EL"N# #. M#GNO, )h+ as) as#d'(n(s)ra)r(< (n S. Proc. No. 107, a+++s, ESTERN "NST"TUTE O

TEC!NOLOG;, "NC., movant-appellee.

San Juan, Africa, Gonzales and San Agustin for Philippine Commercial and Industrial Bank.

Manglapus a! "#ce, Antonio a! "#ce and $izal $. %uimpo for pri&ate respondents andappellees A&elina A. Magno, etc., et al.

%#RRE$O,J.:p

Certiorari and prohibition with preliminar in!unction" certiorarito #declare all acts of therespondent court in the $estate Estate of %innie &ane 'od(es )*p. Proc. No. + of the Courtof /irst 0nstance of 0loilo1 subse2uent to the order of 3ecember +4, +56 as null and void forhavin( been issued without !urisdiction#" prohibition to en!oin the respondent court fromallowin(, toleratin(, sanctionin(, or abettin( private respondent Avelina A. Ma(no to performor do an acts of administration, such as those enumerated in the petition, and frome7ercisin( an authorit or power as Re(ular Administratri7 of above-named $estate Estate,b entertainin( manifestations, motion and pleadin(s 8led b her and actin( on them, andalso to en!oin said court from allowin( said private respondent to interfere, meddle or ta9epart in an manner in the administration of the $estate Estate of Charles Newton 'od(es)*p. Proc. No. +:; of the same court and branch1" with praer for preliminar in!unction,which was issued b this Court on Au(ust


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petitioner>s motion of April ;;, +5:: and its order of &ul +


3/106

*EEN$'@ 0t is m will and be2uest that no action be had in the probate court, in theadministration of m estate, other than that necessar to prove and record this will and toreturn an inventor and appraisement of m estate and list of claims. )Pp. ;-4, Petition.1

$his will was subse2uentl probated in aforementioned *pecial Proceedin(s No. + ofrespondent court on &une ;


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authoried to continue the business in which he was en(a(ed and to perform acts which hehad been doin( while the deceased was livin(.

*= =R3ERE3.

Cit of 0loilo Ma ;, +56. )Anne7 #E#, Petition.1

nder date of 3ecember ++, +56, 'od(es 8led as such E7ecutor another motion thus@

M=$0=N $= APPR=E A%% *A%E*, C=NEHANCE*, %EA*E*, M=R$IAIE* $'A$ $'EEDEC$=R 'A3 MA3E /R$'ER AN3 *B*EJEN$ $RAN*AC$0=N* G'0C' $'E EDEC$=RMAH 3= 0N ACC=R3ANCE G0$' $'E %A*$ G0*' =/ $'E 3ECEA*E3 %0NN0E &ANE '=3IE*.

Comes the E7ecutor in the above-entitled proceedin(s, thru his undersi(ned attorne, to the'on. Court, most respectfull states@

+. F $hat accordin( to the last will and testament of the deceased %innie &ane 'od(es, thee7ecutor as the survivin( spouse and le(atee named in the will of the deceased" has the

ri(ht to dispose of all the properties left b the deceased, portion of which is 2uoted asfollows@

*econd@ 0 (ive, devise and be2ueath all of the rest, residue and remainder of m estate, bothpersonal and real, wherever situated, or located, to m beloved husband, Charles Newton'od(es, to have and to hold unto him, m said husband, durin( his natural lifetime.

$hird@ 0 desire, direct and provide that m husband, Charles Newton 'od(es, shall have theri(ht to mana(e, control, use and en!o said estate durin( his lifetime, and he is hereb(iven the ri(ht to ma9e an chan(es in the phsical properties of said estate, 45 saleor anpart thereof which he ma thin9 best, and the purchase of an other or additional propertas he ma thin9 best" to e3ecute con&e5anceswith or without (eneral or special warrant,convein( in fee simple or for an other term or time, an propert which he ma deem

proper to dispose of" to lease an of the real propert for oil, (as andor other minerals, andall such deeds or leases shall pass the absolute fee simple title to the interest so conveedin such propert as he ma elect to sell. All rents, emoluments and income from saidestate shall 4elong to him, and he is further authoried to use an part of the principal ofsaid estate as he ma need or desire. ...

;. F $hat herein E7ecutor, is not onl part owner of the properties left as con!u(al, but also,the successor to all the properties left b the deceased %innie &ane 'od(es. $hat durin( thelifetime of herein E7ecutor, as %e(atee has the ri(ht to sell, conve, lease or dispose of theproperties in the Philippines. $hat inasmuch as C.N. 'od(es was and is en(a(ed in the buand sell of real and personal properties, even before the death of %innie &ane 'od(es, amotion to authorie said C.N. 'od(es was 8led in Court, to allow him to continue in thebusiness of bu and sell, which motion was favorabl (ranted b the 'onorable Court.

. F $hat since the death of %innie &ane 'od(es, Mr. C.N. 'od(es had been buin( andsellin( real and personal properties, in accordance with the wishes of the late %innie &ane'od(es.

4. F $hat the Re(ister of 3eeds for 0loilo, had re2uired of late the herein E7ecutor to have allthe sales, leases, conveances or mort(a(es made b him, approved b the 'on. Court.

4 PC0B vs. Escolin*uccession


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6. F $hat it is respectfull re2uested, all the sales, conveances leases and mort(a(ese7ecuted b the E7ecutor, be approved b the 'on. Court. and subse2uent salesconveances, leases and mort(a(es in compliances with the wishes of the late %innie &ane'od(es, and within the scope of the terms of the last will and testament, also be approved"

:. F $hat the E7ecutor is under obli(ation to submit his earl accounts, and the properties

conveed can also be accounted for, especiall the amounts received.

G'ERE/=RE, it is most respectfull praed that, all the sales, conveances, leases, andmort(a(es e7ecuted b the E7ecutor, be approved b the 'on. Court, and also thesubse2uent sales, conveances, leases, and mort(a(es in consonance with the wishes of thedeceased contained in her last will and testament, be with authoriation and approval of the'on. Court.

Cit of 0loilo, 3ecember ++, +5:.

)Anne7 #I#, Petition.1

which a(ain was promptl (ranted b the respondent court on 3ecember +4, +56 asfollows@

" $ 1 ) $

As praed for b Attorne Iellada, counsel for the E7ecutor for the reasons stated in hismotion dated 3ecember ++, +56, which the Court considers well ta9en all the sales,conveances, leases and mort(a(es of all properties left b the deceased %innie &ane'od(es e7ecuted b the E7ecutor Charles N. 'od(es are hereb APPR=E3. $he saidE7ecutor is further authoried to e7ecute subse2uent sales, conveances, leases andmort(a(es of the properties left b the said deceased %innie &ane 'od(es in consonancewith the wishes conveed in the last will and testament of the latter.

*o ordered.

0loilo Cit. 3ecember +4, +56.

)Anne7 #'#, Petition.1

=n April +4, +565, in submittin( his 8rst statement of account as E7ecutor for approval,'od(es alle(ed@

Pursuant to the provisions of the Rules of Court, herein e7ecutor of the deceased, rendersthe followin( account of his administration coverin( the period from &anuar +, +56< to3ecember +, +56


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Anne7 #A#, be approved b the 'onorable Court, as substantial compliance with there2uirements of the Rules of Court.

$hat no person interested in the Philippines of the time and place of e7aminin( the hereinaccounts be (iven notice, as herein e7ecutor is the onl devisee or le(atee of the deceased,in accordance with the last will and testament alread probated b the 'onorable court.

Cit of 0loilo April +4, +565.

)Anne7 #0#, Petition.1

$he respondent court approved this statement of account on April ;+, +565 in its orderworded thus@

pon petition of Att. Iellada, in representation of the E7ecutor, the statement of net worthof the estate of %innie &ane 'od(es, assets and liabilities, income and e7penses as shown inthe individual income ta7 return for the estate of the deceased and mar9ed as Anne7 #A# isapproved.

*= =R3ERE3.

Cit of 0loilo April ;+, +565.

)Anne7 #, Petition.1

'is accounts for the periods &anuar +, +565 to 3ecember +, +565 and &anuar +, +5: to3ecember +, +5: were submitted li9ewise accompanied b alle(ations identical mutatismutandisto those of April +4, +565, 2uoted above" and the respective orders approvin( thesame, dated &ul , +5: and Ma ;, +5:+, were substantiall identical to the above-2uotedorder of April ;+, +565. 0n connection with the statements of account !ust mentioned, thefollowin( assertions related thereto made b respondent-appellee Ma(no in her brief do not

appear from all indications discernible in the record to be disputable@

nder date of April +4, +565, C.N. 'od(es 8led his 8rst #Account b the E7ecutor# of theestate of %innie &ane 'od(es. 0n the #*tatement of Networth of Mr. C.N. 'od(es and theEstate of %innie &ane 'od(es# as of 3ecember +, +56< anne7ed thereto, C.N. 'od(esreported that the combined con!u(al estate earned a net income of P;


7/106

e7actl one-half of the net income of his combined personal assets and that of the estate of%innie &ane 'od(es. )pp. 5+-5;. Appellee>s Brief.1

777 777 777

nder date of April ;, +5:+, C.N. 'od(es 8led his third #Annual *tatement of Account b

the E7ecutor for the Hear +5:# of the estate of %innie &ane 'od(es. 0n the #*tatement of NetGorth of Mr. C.N. 'od(es and the Estate of %innie &ane 'od(es# as of 3ecember +, +5:anne7ed thereto, C.N. 'od(es reported that the combined con!u(al estate earned a netincome of P+4,


8/106

$he records of these cases do not show that anthin( else was done in the above-mentioned*pecial Proceedin(s No. + until 3ecember ;:, +5:;, when on account of the death of'od(es the da before, the same lawer, Att. %eon P. Iellada, who had been previouslactin( as counsel for 'od(es in his capacit as E7ecutor of his wife>s estate, and as such had8led the afore2uoted motions and manifestations, 8led the followin(@

RIEN$ )-PA$')M=$0=N /=R $'E APP=0N$MEN$ =/ A*PEC0A% A3M0N0*$RA$R0D

C=ME* the undersi(ned attorne for the E7ecutor in the above-entitled proceedin(s, to the'onorable Court, most respectfull states@

+. $hat in accordance with the %ast Gill and $estament of %innie &ane 'od(es )deceased1,her husband, Charles Newton 'od(es was to act as E7ecutor, and in fact, in an order issuedb this 'on. Court dated &une ;


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husband, durin( his natural lifetime#, she, at the same time or in li9e manner, provided that#at the death of m said husband F 0 (ive devise and be2ueath all of the rest, residue andremainder of m estate, both real and personal, wherever situated or located, to be e2ualldivided amon( m brothers and sisters, share and share ali9e F#. Accordin(l, it becameincumbent upon 'od(es, as e7ecutor of his wife>s will, to dul li2uidate the con!u(alpartnership, half of which constituted her estate, in order that upon the eventualit of his

death, #the rest, residue and remainder# thereof could be determined and correspondin(ldistributed or divided amon( her brothers and sisters. And it was precisel because no suchli2uidation was done, furthermore, there is the issue of whether the distribution of her estateshould be (overned b the laws of the Philippines or those of $e7as, of which *tate she was anational, and, what is more, as alread stated, 'od(es made oKcial and sworn statementsor manifestations indicatin( that as far as he was concerned no #propert interests passedto him as survivin( spouse F #e7cept for purposes of administerin( the estate, pain(debts, ta7es and other le(al char(es# and it was the intention of the survivin( husband ofthe deceased to distribute the remainin( propert and interests of the deceased in theirCommunit Estate to the devisees and le(atees named in the will when the debts, liabilities,ta7es and e7penses of administration are 8nall determined and paid#, that the incidentsand controversies now before s for resolution arose. As ma be observed, the situation thatensued upon the death of 'od(es became rather unusual and so, 2uite understandabl, thelower court>s actuations presentl under review are apparentl wantin( in consistenc andseemin(l lac9 proper orientation.

$hus, Ge cannot discern clearl from the record before s the precise perspective fromwhich the trial court proceeded in issuin( its 2uestioned orders. And, re(retabl, none of thelen(th briefs submitted b the parties is of valuable assistance in clearin( up the matter.

$o be(in with, Ge (ather from the two records on appeal 8led b petitioner, as appellant inthe appealed cases, one with (reen cover and the other with a ellow cover, that at theoutset, a sort of modus operandi had been a(reed upon b the parties under which therespective administrators of the two estates were supposed to act con!ointl, but since nocop of the said a(reement can be found in the record before s, Ge have no wa of9nowin( when e7actl such a(reement was entered into and under what speci8c terms. And

while reference is made to said modus operandi in the order of *eptember ++, +5:4, onpa(es ;6-;: of the Ireen Record on Appeal, readin( thus@

$he present incident is to hear the side of administratri7, Miss Avelina A. Ma(no, in answerto the char(es contained in the motion 8led b Att. Cesar $irol on *eptember , +5:4. 0nanswer to the said char(es, Miss Avelina A. Ma(no, throu(h her counsel, Att. Rial Juimpo,8led a written manifestation.

After readin( the manifestation here of Att. Juimpo, for and in behalf of the administratri7,Miss Avelina A. Ma(no, the Court 8nds that everthin( that happened before *eptember ,+5:4, which was resolved on *eptember


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there is nothin( in the record indicatin( whatever happened to it afterwards, e7cept thata(ain, reference thereto was made in the appealed order of =ctober ;, +5:6, on pa(es;5;-;56 of the Ireen Record on Appeal, as follows@

=n record is an ur(ent motion to allow PC0B to open all doors and loc9s in the 'od(es =Kceat ;:-;< Iuanco *treet, 0loilo Cit, to ta9e immediate and e7clusive possession thereof

and to place its own loc9s and 9es for securit purposes of the PC0B dated =ctober ;, +5:6thru Att. Cesar $irol. 0t is alle(ed in said ur(ent motion that Administratri7 Ma(no of thetestate estate of %innie &ane 'od(es refused to open the 'od(es =Kce at ;:-;< Iuanco*treet, 0loilo Cit where PC0B holds oKce and therefore PC0B is su?erin( (reat moral dama(eand pre!udice as a result of said act. 0t is praed that an order be issued authoriin( it )PC0B1to open all doors and loc9s in the said oKce, to ta9e immediate and e7clusive possessionthereof and place thereon its own loc9s and 9es for securit purposes" instructin( the cler9of court or an available deput to witness and supervise the openin( of all doors and loc9sand ta9in( possession of the PC0B.

A written opposition has been 8led b Administratri7 Ma(no of even date )=ct. ;1 thrucounsel Rial Juimpo statin( therein that she was compelled to close the oKce for thereason that the PC0B failed to compl with the order of this Court si(ned b &ud(e Anacleto 0.

Bellosillo dated *eptember ++, +5:4 to the e?ect that both estates should remain in status6uo to their modus operandias of *eptember +, +5:4.

$o arrive at a happ solution of the dispute and in order not to interrupt the operation of theoKce of both estates, the Court aside from the reasons stated in the ur(ent motion andopposition heard the verbal ar(uments of Att. Cesar $irol for the PC0B and Att. RialJuimpo for Administrati7 Ma(no.

After due consideration, the Court hereb orders Ma(no to open all doors and loc9s in the'od(es =Kce at ;:-;< Iuanco *treet, 0loilo Cit in the presence of the PC0B or its dulauthoried representative and deput cler9 of court Albis of this branch not later than @tomorrow mornin( =ctober ;


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)e1 $hat the accountant of the estate of %innie &ane 'od(es shall have access to all recordsof the transactions of both estates for the protection of the estate of %innie &ane 'od(es" andin li9e manner the accountant or an authoried representative of the estate of C.N. 'od(esshall have access to the records of transactions of the %innie &ane 'od(es estate for theprotection of the estate of C.N. 'od(es.

=nce the estates> oKce shall have been opened b Administratri7 Ma(no in the presence ofthe PC0B or its dul authoried representative and deput cler9 Albis or his dul authoriedrepresentative, both estates or an of the estates should not close it without previousconsent and authorit from this court.

*= =R3ERE3.

As ma be noted, in this order, the respondent court re2uired that all collections from theproperties in the name of 'od(es should be deposited in a !oint account of the two estates,which indicates that seemin(l the so-calledmodus operandiwas no lon(er operative, buta(ain there is nothin( to show when this situation started.

%i9ewise, in para(raph of the petitioner>s motion of *eptember +4, +5:4, on pa(es +


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%innie &ane 'od(es, Mr. &ames %. *ullivan. 0t is further praed that the Administratri7 of the$estate Estate of %innie &ane 'od(es be directed to pa the retailers fee of said lawers, saidfees made char(eable as e7penses for the administration of the estate of %innie &ane 'od(es)pp. +:4+-+:4;, ol. , *p. +1.

An opposition has been 8led b the Administrator PC0B thru Att. 'erminio =aeta dated &ul

++, +5:4, on the (round that pament of the retainers fee of Atts. Man(lapus and Juimpoas praed for in said Manifestation and r(ent Motion is pre!udicial to the +L claim of theestate of C. N. 'od(es" emploment of Atts. Man(lapus and Juimpo is premature andorunnecessar" Atts. Juimpo and Man(lapus are representin( conictin( interests and theestate of %innie &ane 'od(es should be closed and terminated )pp. +:5-+:


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administrator in these special proceedin(s from all proceedin(s and action to enforce orcompl with the provision of the aforesaid order of &anuar 4, +5:6. 0n support of saidmanifestation and motion it is alle(ed that the order of &anuar 4, +5:6 is null and voidbecause the said order was never delivered to the deput cler9 Albis of Branch )the sala of

&ud(e Juerubin1 and the alle(ed order was found in the drawer of the late &ud(e Juerubin inhis oKce when said drawer was opened on &anuar +, +5:6 after the death of &ud(e

Juerubin b Perfecto Juerubin, &r., the son of the !ud(e and in the presence of E7ecutive&ud(e Rovira and deput cler9 Albis )*ec. +, Rule :, New Civil Code1 )Pp. ::-:::, ol.000, *p. +1.

Att. Roman Mabanta, &r. for the PC0B 8led a motion for reconsideration dated /ebruar ;,+5:6 as9in( that the order dated &anuar 4, +5:4 be reversed on the (round that@

+. Attornes retained must render services to the estate not to the personal heir"

;. 0f services are rendered to both, fees should be pro-rated between them"

. Attornes retained should not represent conictin( interests" to the pre!udice of the otherheirs not represented b said attornes"

4. /ees must be commensurate to the actual services rendered to the estate"

6. $here must be assets in the estate to pa for said fees )Pp. ::;6-:::, ol. 000, *p.+1.

Att. Juimpo for Administratri7 Ma(no of the estate of %innie &ane 'od(es 8led a motion tosubmit dated &ul +6, +5:6 as9in( that the manifestation and ur(ent motion dated &une +,+5:4 8led b Atts. Man(lapus and Juimpo and other incidents directl appertainin( theretobe considered submitted for consideration and approval )pp. :65-::6, ol. 000, *p. +1.

Considerin( the ar(uments and reasons in support to the pleadin(s of both the

Administratri7 and the PC0B, and of Att. Iellada, hereinbefore mentioned, the Courtbelieves that the order of &anuar 4, +5:6 is null and void for the reason that the said orderhas not been 8led with deput cler9 Albis of this court )Branch 1 durin( the lifetime of &ud(eJuerubin who si(ned the said order. 'owever, the said manifestation and ur(ent motiondated &une +, +5:4 is bein( treated and considered in this instant order. 0t is worth to notethat in the motion dated &anuar ;4, +5:4 )Pp. ++45- ++:, ol. , *p. +1 which has been8led b Att. Iellada and his associates and Att. Iibbs and other lawers in addition to thestipulated fees for actual services rendered. 'owever, the fee a(reement dated /ebruar ;,+5:4, between the Administrator of the estate of C. N. 'od(es and Att. Iibbs whichprovides for retainer fee of P4, monthl in addition to speci8c fees for actualappearances, reimbursement for e7penditures and contin(ent fees has also been approvedb the Court and said lawers have alread been paid. )pp. +;-+;5, ol. , *p. Proc. +pp. +;-+, ol. , *p. Proc. +1.

G'ERE/=RE, the order dated &anuar 4, +5:6 is hereb declared null and void.

$he manifestation and motion dated &une +, +5:4 which was 8led b the attornes for theadministratri7 of the testate estate of %innie &ane 'od(es is (ranted and the a(reementanne7ed thereto is hereb approved.

$he administratri7 of the estate of %innie &ane 'od(es is hereb directed to be needed toimplement the approval of the a(reement anne7ed to the motion and the administrator of

+4 PC0B vs. Escolin*uccession


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the estate of C. N. 'od(es is directed to countersi(n the said chec9 or chec9s as the casema be.

*= =R3ERE3.

thereb implin( somehow that the court assumed the e7istence of independent but

simultaneous administrations.

Be that as it ma, a(ain, it appears that on Au(ust :, +5:6, the court, actin( on a motion ofpetitioner for the approval of deeds of sale e7ecuted b it as administrator of the estate of'od(es, issued the followin( order, also on appeal herein@

Actin( upon the motion for approval of deeds of sale for re(istered land of the PC0B,Administrator of the $estate Estate of C. N. 'od(es in *p. Proc. +:; )ol. 00, pp. ;;44-;;461, dated &ul +:, +5:6, 8led b Att. Cesar $. $irol in representation of the law 8rms of=aeta, Iibbs and =aeta and $irol and $irol and the opposition thereto of Att. Rial R.Juimpo )ol. 000, pp. :s counsel, Att. %eon P. Iellada, on the basis of section < of Rule


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A random chec9 of the records of *pecial Proceedin( No. + alone will show Att. Cesar $.$irol as havin( presented for court approval deeds of sale of real properties si(ned b bothappellee Avelina A. Ma(no and 3. R. Paulino in the followin( numbers@ )a1 motion dated*eptember ;+, +5:4 F : deeds of sale" )b1 motion dated November 4, +5:4 F + deed ofsale" )c1 motion dated 3ecember +, +5:4 F 4 deeds of sale" )d1 motion dated /ebruar ,+5:6 F < deeds of sale" )f1 motion dated Ma , +5:6 F 5 deeds of sale. 0n view of the ver

e7tensive landholdin(s of the 'od(es spouses and the man motions 8led concernin( deedsof sale of real properties e7ecuted b C. N. 'od(es the lower court has had to constitutespecial separate e7pedientes in *pecial Proceedin(s Nos. + and +:; to include meremotions for the approval of deeds of sale of the con!u(al properties of the 'od(es spouses.

As an e7ample, from amon( the ver man, under date of /ebruar , +5:6, Att. Cesar $.$irol, as counsel for the appellant, 8led #Motion for Approval of 3eeds of *ale for Re(istered%and and Cancellations of Mort(a(es# )C/0 Record, *p. Proc. No. +, ol. 000, pp. :6-:65:1 the alle(ations of which read@

#+. 0n his lifetime, the late C. N. 'od(es e7ecuted #Contracts to *ell# real propert, and theprospective buers under said contracts have alread paid the price and complied with theterms and conditions thereof"

#;. 0n the course of administration of both estates, mort(a(e debtors have alread paid theirdebts secured b chattel mort(a(es in favor of the late C. N. 'od(es, and are now entitledto release therefrom"

#. $here are attached hereto documents e7ecuted !ointl b the Administratri7 in *p. Proc.No. + and the Administrator in *p. Proc. No. +:;, consistin( of deeds of sale in favor F

/ernando Cano, Bacolod Cit, =cc. Ne(ros/e Ma(banua, 0loilo CitPolicarpio M. Pareno, %a Pa, 0loilo CitRosario $. %ibre, &aro, 0loilo Cit/ederico B. $orres, 0loilo CitRenaldo $. %ata2uin, %a Pa, 0loilo CitAnatolio $. ira, 0loilo CitBen!amin Rolando, &aro, 0loilo Cit

and cancellations of mort(a(es in favor of F

Pablo Manano, =ton, 0loiloRicardo M. 3iana, 3ao, *an &ose, Anti2ue*implicio $in(son, 0loilo CitAmado Ma(banua, Pototan, 0loiloRoselia M. Baes, Bolo, Ro7as CitGilliam Baani, Rial Estanuela, 0loilo Cit

Elpidio illarete, Molo, 0loilo CitNorma $. Rui, &aro, 0loilo Cit

#4. $hat the approval of the aforesaid documents will not reduce the assets of the estates soas to prevent an creditor from receivin( his full debt or diminish his dividend.#

And the praer of this motion is indeed ver revealin(@

+: PC0B vs. Escolin*uccession


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#G'ERE/=RE, it is respectfull praed that, under Rule s Brief.1

None of these assertions is denied in Petitioner>s repl brief.

/urther indicatin( lac9 of concrete perspective or orientation on the part of the respondentcourt and its hesitanc to clear up matters promptl, in its other appealed order ofNovember ;, +5:6, on pa(es 4-6 of the Ireen Record on Appeal, said respondentcourt allowed the movant Ricardo *alas, President of appellee Gestern 0nstitute of

$echnolo( )successor of Pana Educational 0nstitutions, 0nc.1, one of the parties with whom'od(es had contracts that are in 2uestion in the appeals herein, to pa petitioner, asAdministrator of the estate of 'od(es andor respondent Ma(no, as Administrator of theestate of Mrs. 'od(es, thus@

Considerin( that in both cases there is as et no !udicial declaration of heirs nor distributionof properties to whomsoever are entitled thereto, the Court believes that pament to boththe administrator of the testate estate of C. N. 'od(es and the administratri7 of the testateestate of %innie &ane 'od(es or to either one of the two estates is proper and le(al.

G'ERE/=RE, movant Ricardo $. *alas can pa to both estates or either of them.

*= =R3ERE3.

)Pp. 4-6, Ireen Record on Appeal.1

=n the other hand, as stated earlier, there were instances when respondent Ma(no was(iven authorit to act alone. /or instance, in the other appealed order of 3ecember +5,+5:4, on pa(e ;;+ of the Ireen Record on Appeal, the respondent court approved pamentsmade b her of overtime pa to some emploees of the court who had helped in (atherin(and preparin( copies of parts of the records in both estates as follows@

Considerin( that the e7penses sub!ect of the motion to approve pament of overtime padated 3ecember +, +5:4, are reasonable and are believed b this Court to be a properchar(e of administration char(eable to the testate estate of the late %innie &ane 'od(es, thesaid e7penses are hereb APPR=E3 and to be char(ed a(ainst the testate estate of thelate %innie &ane 'od(es. $he administrator of the testate estate of the late Charles Newton'od(es is hereb ordered to countersi(n the chec9 or chec9s necessar to pa the saidovertime pa as shown b the bills mar9ed Anne7 #A#, #B# and #C# of the motion.

*= =R3ERE3.

)Pp. ;;+-;;;, Ireen Record on Appeal.1

%i9ewise, the respondent court approved deeds of sale e7ecuted b respondent Ma(noalone, as Administratri7 of the estate of Mrs. 'od(es, coverin( properties in the name of'od(es, pursuant to #contracts to sell# e7ecuted b 'od(es, irrespective of whether thewere e7ecuted b him before or after the death of his wife. $he orders of this nature whichare also on appeal herein are the followin(@

+. =rder of March , +5::, on p. + of the Ireen Record on Appeal, approvin( the deed ofsale e7ecuted b respondent Ma(no in favor of appellee %oreno Carles on /ebruar ;4,

+ PC0B vs. Escolin*uccession


18/106

+5::, pursuant to a #contract to sell# si(ned b 'od(es on &une +, +56


19/106

+;. =rder of &anuar , +5:, on pp. 6-:,id., approvin( three deeds of sale e7ecuted brespondent Ma(no, one in favor of appellees *antia(o Pacaonsis and two in favor of appelleeAdelfa Premalon on 3ecember 6, +5:: and November , +5::, respectivel, pursuant toseparate #promises to sell# si(ned respectivel b 'od(es on Ma ;:, +566 and &anuar ,+564, before the death of his wife, and =ctober +, +565, after her death.

0n li9e manner, there were also instances when respondent court approved deeds of salee7ecuted b petitioner alone and without the concurrence of respondent Ma(no, and suchapprovals have not been the sub!ect of an appeal. No less than petitioner points this out onpa(es +45-+6 of its brief as appellant thus@

$he points of fact and law pertainin( to the two abovecited assi(nments of error havealread been discussed previousl. 0n the 8rst abovecited error, the order alluded to was(eneral, and as alread e7plained before, it was, as admitted b the lower court itself,superseded b the particular orders approvin( speci8c 8nal deeds of sale e7ecuted b theappellee, Avelina A. Ma(no, which are sub!ect of this appeal, as well as the particular ordersapprovin( speci8c 8nal deeds of sale e7ecuted b the appellant, Philippine Commercial and0ndustrial Ban9, which were never appealed b the appellee, Avelina A. Ma(no, nor b anpart for that matter, and which are now therefore 8nal.

Now, simultaneousl with the fore(oin( incidents, others of more fundamental and allembracin( si(ni8cance developed. =n =ctober 6, +5:, over the si(nature of Att. Allison &.Iibbs in representation of the law 8rm of =aeta, Iibbs =aeta, as counsel for the co-administrators &oe 'od(es and /ernando P. Mirasol, the followin( self-e7planator motionwas 8led@

+$G)' M"'I" *"$ A ACC"+'IG A1 1)I2)$7 '" A1MIIS'$A'I" "* '() )S'A')"* C. . ("1G)S "* A "* '() ASS)'S "* '() C"J+GA PA$')$S(IP "* '()1)C)AS)1 II) JA) ("1G)S A1 C . ("1G)S )-IS'IG AS "* MA7 89, :;


20/106

issued the followin( order@

#As praed for b Attorne Iellada, counsel for the E7ecutor, for the reasons stated in hismotion dated 1ecem4er ::, :;


21/106

of both spouses ma be lost, dama(ed or (o to waste, unless a *pecial Administratri7 isappointed.#

)p. +. Rec. *p. Proc. +1

)+1 =n 3ecember ;:, +5:; %etters of Administration were issued to Avelina Ma(no pursuant

to this 'onorable Court>s aforesaid =rder of 3ecember ;6, +5:;

#Gith full authorit to ta9e possession of all the propert of said deceased in an province orprovinces in which it ma be situated and to perform all other acts necessar for thepreservation of said propert, said Administratri7 andor *pecial Administratri7 havin( 8led abond satisfactor to the Court.#

)p. +;, Rec. *p. Proc. +1

)++1 =n &anuar ;;, +5: this 'onorable Court on petition of %eon P. Iellada of &anuar ;+,+5: issued %etters of Administration to@

)a1 Avelina A. Ma(no as Administratri7 of the estate of %innie &ane 'od(es"

)b1 Avelina A. Ma(no as *pecial Administratri7 of the Estate of Charles Newton 'od(es" and

)c1 &oe 'od(es as Co-*pecial Administrator of the Estate of Charles Newton 'od(es.

)p. 4, Rec. *p. Proc. +1

)+;1 =n /ebruar ;, +5: this 'onorable Court on the basis of a motion 8led b %eon P.Iellada as le(al counsel on /ebruar +:, +5: for Avelina A. Ma(no actin( as Administratri7of the Estate of Charles Newton 'od(es )pp. ++4-++:, *p. Proc. +1 issued the followin(order@

#... se autoria a a2uella )Avelina A. Ma(no1 a 8rmar escrituras de venta de8nitiva depropiedades cubiertas por contratos para vender, 8rmados, en vida, por el 8nado CharlesNewton 'od(es, cada ve 2ue el precio estipulado en cada contrato este totalmentepa(ado. *e autoria i(ualmente a la misma a 8rmar escrituras de cancelacion de hipotecatanto de bienes reales como personales cada ve 2ue la consideracion de cada hipotecaeste totalmente pa(ada.

#Cada una de dichas escrituras 2ue se otor(uen debe ser sometida para la aprobacion deeste &u(ado.#

)p. ++, *p. Proc. +1.

OPar + )c1, Repl to Motion /or Removal of &oe 'od(es

)+1 =n *eptember l:, +5: %eon P. Iellada, actin( as attorne for Avelina A. Ma(no asAdministratri7 of the estate of %innie &ane 'od(es, alle(es@

. F $hat since &anuar, +5:, both estates of %innie &ane 'od(es and Charles Newton'od(es have been receivin( in full, paments for those #contracts to sell# entered into b C.

;+ PC0B vs. Escolin*uccession


22/106

N. 'od(es durin( his lifetime, and the purchasers have been demandin( the e7ecution ofde8nite deeds of sale in their favor.

4. F $hat hereto attached are thirteen )+1 copies deeds of sale e7ecuted b theAdministratri7 and b the co-administrator )/ernando P. Mirasol1 of the estate of %innie &ane'od(es and Charles Newton 'od(es respectivel, in compliance with the terms and

conditions of the respective #contracts to sell# e7ecuted b the parties thereto.#

)+41 $he properties involved in the aforesaid motion of *eptember +:, +5: are allre(istered in the name of the deceased C. N. 'od(es.

)+61 Avelina A. Ma(no, it is alle(ed on information and belief, has been advertisin( in thenewspaper in 0loilo thusl@

/or *ale

$estate Estate of %innie &ane 'od(es and Charles Newton 'od(es.

All Real Estate or Personal Propert will be sold on /irst Come /irst *erved Basis.

Avelina A. Ma(noAdministratri7

)+:1 Avelina A. Ma(no, it is alle(ed on information and belief, has paid and still is pain(sums of mone to sundr persons.

)+1 &oe 'od(es throu(h the undersi(ned attornes manifested durin( the hearin(s beforethis 'onorable Court on *eptember 6 and :, +5: that the estate of C. N. 'od(es wasclaimin( all of the assets belon(in( to the deceased spouses %innie &ane 'od(es and C. N.'od(es situated in Philippines because of the aforesaid election b C. N. 'od(es wherein heclaimed and too9 possession as sole owner of all of said assets durin( the administration of

the estate of %innie &ane 'od(es on the (round that he was the sole devisee and le(ateeunder her %ast Gill and $estament.

)+


23/106

)1 Pendin( this 'onorable Court>s ad!udication of the aforesaid issues, Avelina A. Ma(no tostop, unless she 8rst secures the conformit of &oe 'od(es )or his dul authoriedrepresentative, such as the undersi(ned attornes1 as the Co-administrator and attorne-in-fact of a ma!orit of the bene8ciaries of the estate of C. N. 'od(es@

)a1 Advertisin( the sale and the sale of the properties of the estates@

)b1 Emploin( personnel and pain( them an compensation.

)41 *uch other relief as this 'onorable Court ma deem !ust and e2uitable in the premises.)Anne7 #$#, Petition.1

Almost a ear thereafter, or on *eptember +4, +5:4, after the co-administrators &oe 'od(esand /ernando P. Mirasol were replaced b herein petitioner Philippine Commercial and0ndustrial Ban9 as sole administrator, pursuant to an a(reement of all the heirs of 'od(esapproved b the court, and because the above motion of =ctober 6, +5: had not et beenheard due to the absence from the countr of Att. Iibbs, petitioner 8led the followin(@

MAI*)S'A'I" A1 M"'I", IC+1IG M"'I" '" S)' *"$ ()A$IG A1 $)S"2)>+$G)' M"'I" *"$ A ACC"+'IG A1 1)I2)$7 '" A1MIIS'$A'"$S "* '())S'A') "* C. . ("1G)S "* A '() ASS)'S "* '() C"J+GA PA$')$S(IP "* '()1)C)AS)1 II) JA) ("1G)S A1 C. . ("1G)S )-IS'IG AS "* MA7 89, :;


24/106

e7clusive possession and ownership of one-hundred percent )++,1 )or, in the alternative,sevent-8ve percent O6L of all assets owned b C. N. 'od(es or %innie &ane 'od(essituated in the Philippines. =n /ebruar +, +5:4 )pp. 54-56, C/0 Rec., *. P. No. +:;1 this'onorable Court amended its order of &anuar ;4, +5:4 but in no wa chan(es itsreco(nition of the aforedescribed basic demand b the PC0B as administrator of the estate ofC. N. 'od(es to one hundred percent )+L1 of the assets claimed b both estates.

4. =n /ebruar +6, +5:4 the PC0B 8led a #Motion to Resolve# the aforesaid Motion of =ctober6, +5:. $his 'onorable Court set for hearin( on &une ++, +5:4 the Motion of =ctober 6,+5:.

6. =n &une ++, +5:4, because the undersi(ned Allison &. Iibbs was absent in the nited*tates, this 'onorable Court ordered the inde8nite postponement of the hearin( of theMotion of =ctober 6, +5:.

:. *ince its appointment as administrator of the estate of C. N. 'od(es the PC0B has notbeen able to properl carr out its duties and obli(ations as administrator of the estate of C.N. 'od(es because of the followin( acts, amon( others, of Avelina A. Ma(no and those whoclaim to act for her as administratri7 of the estate of %innie &ane 'od(es@

)a1 Avelina A. Ma(no ille(all acts as if she is in e7clusive control of all of the assets in thePhilippines of both estates includin( those claimed b the estate of C. N. 'od(es asevidenced in part b her loc9in( the premises at ;:-;< Iuanco *treet, 0loilo Cit onAu(ust +, +5:4 and refusin( to reopen same until ordered to do so b this 'onorable Courton *eptember , +5:4.

)b1 Avelina A. Ma(no ille(all acts as thou(h she alone ma decide how the assets of theestate of C.N. 'od(es should be administered, who the PC0B shall emplo and how muchthe ma be paid as evidenced in part b her refusal to si(n chec9s issued b the PC0Bpaable to the undersi(ned counsel pursuant to their fee a(reement approved b this'onorable Court in its order dated March +, +5:4.

)c1 Avelina A. Ma(no ille(all (ives access to and turns over possession of the records andassets of the estate of C.N. 'od(es to the attorne-in-fact of the 'i(don /amil, Mr. &ames %.*ullivan, as evidenced in part b the cashin( of his personal chec9s.

)d1 Avelina A. Ma(no ille(all refuses to e7ecute chec9s prepared b the PC0B drawn to pae7penses of the estate of C. N. 'od(es as evidenced in part b the chec9 drawn toreimburse the PC0B>s advance of P4


25/106

e7isted in the Philippines on the date of C. N. 'od(es> death, 3ecember ;6, +5:;, and werein his possession and re(istered in his name alone. $he PC0B 9nows of no assets in thePhilippines re(istered in the name of %innie &ane 'od(es, the estate of %innie &ane 'od(es,or, C. N. 'od(es, E7ecutor of the Estate of %innie &ane 'od(es on 3ecember ;6, +5:;. All ofthe assets of which the PC0B has 9nowled(e are either re(istered in the name of C. N.'od(es, alone or were derived therefrom since his death on 3ecember ;6, +5:;.

5. $he PC0B as the current administrator of the estate of C. N. 'od(es, deceased, succeededto all of the ri(hts of the previousl dul appointed administrators of the estate of C. N.'od(es, to wit@

)a1 =n 3ecember ;6, +5:;, date of C. N. 'od(es> death, this 'onorable Court appointed MissAvelina A. Ma(no simultaneousl as@

)i1 Administratri7 of the estate of %innie &ane 'od(es )p. +;, C/0 Rec., *.P. No. +1 toreplace the deceased C. N. 'od(es who on Ma ;


26/106

)i1 Conformit of Avelina A. Ma(no actin( as #Administratri7 of the Estate of %innie &ane'od(es and *pecial Administratri7 of the Estate of C. N. 'od(es#"

)ii1 Conformit of %eslie Echols, a $e7as lawer actin( for the heirs of C.N. 'od(es" and

)iii1 Conformit of Gilliam Brown, a $e7as lawer actin( for the 'i(don famil who claim to be

the onl heirs of %innie &ane 'od(es )pp. +


27/106

e7clusive control of the aforesaid records, properties and assets because Miss Ma(nocontinues to assert the claims hereinabove outlined in para(raph :, continues to use herown loc9s to the doors of the aforesaid premises at ;:-;< Iuanco *treet, 0loilo Cit andcontinues to den the PC0B its ri(ht to 9now the combinations to the doors of the vault andsafes situated within the premises at ;:-;< Iuanco *treet despite the fact that saidcombinations were 9nown to onl C. N. 'od(es durin( his lifetime.

+:. $he Philippine estate and inheritance ta7es assessed the estate of %innie &ane 'od(eswere assessed and paid on the basis that C. N. 'od(es is the sole bene8ciar of the assetsof the estate of %innie &ane 'od(es situated in the Philippines. Avelina A. Ma(no and herle(al counsel at no time have 2uestioned the validit of the aforesaid assessment and thepament of the correspondin( Philippine death ta7es.

+. Nothin( further remains to be done in the estate of %innie &ane 'od(es e7cept to resolvethe aforesaid Motion of =ctober 6, +5: and (rant the PC0B the e7clusive possession andcontrol of all of the records, properties and assets of the estate of C. N. 'od(es.

+


28/106

=n &anuar


29/106

desi(nated his wife, %innie &ane 'od(es, as his bene8ciar usin( the identical lan(ua(e sheused in the second and third provisos of her Gill, supra.

6. =n Ma ;, +56 %innie &ane 'od(es died in 0loilo Cit, predeceasin( her husband b morethan 8ve )61 ears. At the time of her death, she had no forced or compulsor heir, e7cepther husband, C. N. 'od(es. *he was survived also b various brothers and sisters mentioned

in her Gill )supra1, which, for convenience, we shall refer to as the '0I3=N*.

:. =n &une ;


30/106

estate of innie Jane (odges, capa4le of inheritance 45 her heirs, consisted e3clusi&el5 of nomore than onehalf @:8 of the conugal estate, computed as of the time of her death onMa5 89, :; )C/0 Record, *p.Proc. No. +, p. 44" emphasis supplied.1

PC0B vs. Escolin*uccession


31/106

issued the followin( order@

#As praed for b Attorne Iellada, counsel for the E7ecutor,for the reasons stated in hismotion dated 1ecem4er ::, :;


32/106

located in the Philippines re(istered in its name whatsoever at the time of the death of C. N.'od(es on 3ecember ;6, +5:;.

+. $he Gill of %innie &ane 'od(es )Anne7 #A#1, fourth para(raph, provides as follows@

#At the death of m said husband, Charles Newton 'od(es, 0 (ive, devise and be2ueath all of

the rest, residue and remainder of m estate both real and personal, wherever situated orlocated, to be e2uall divided amon( m brothers and sisters, share and share ali9e, namel@

#Esta 'i(don, Emma 'owell, %eonard 'i(don, Ro 'i(don, *adie Rascoe, Era Boman andNimra 'i(don.#

Because of the facts hereinabove set out there is no #rest, residue and remainder#, at leastto the e7tent of the Philippine assets, which remains to vest in the '0I3=N*, assumin( thisproviso in %innie &ane 'od(es> Gill is valid and bindin( a(ainst the estate of C. N. 'od(es.

+Gill is without merit because said provision is void and invalid at least as to the Philippineassets. 0t should not, in anwa, a?ect the ri(hts of the estate of C. N. 'od(es or his heirs tothe properties, which C. N. 'od(es ac2uired b wa of inheritance from his wife %innie &ane'od(es upon her death.

)a1 0n spite of the above-mentioned provision in the Gill of %innie &ane 'od(es, C. N. 'od(esac2uired, not merel a usufructuar ri(ht, but absolute title and ownership to her estate. 0na recent case involvin( a ver similar testamentar provision, the *upreme Court held thatthe heir 8rst desi(nated ac2uired full ownership of the propert be2ueathed b the will, notmere usufructuar ri(hts. )Consolacion /lorentino de Crisolo(o, et al., vs. Manuel *in(son, I.R. No. %-+


33/106

entenderse 2ue estas se(undas desi(naciones solo han de lle(ar a tener efectividad en elcaso de 2ue el primer instituido muera antes 2ue el testador, fuera o no esta su verdaderaintencion. ...#. ): Manresa, a ed., pa(. +6.1 0n other words, !hen another heir isdesignated to inherit upon the death of a Drst heir, the second designation can ha&e eFectonl5 in case the Drst instituted heir dies 4efore the testator, !hether or not that !as the trueintention of said testator. *ince C. N. 'od(es did not die before %innie &ane 'od(es, the

provision for substitution contained in %innie &ane 'od(es> Gillis void.

)d1 0n view of the invalidit of the provision for substitution in the Gill, C. N. 'od(es>inheritance to the entiret of the %innie &ane 'od(es estate is irrevocable and 8nal.

+5. Be that as it ma, at the time of C. N. 'od(es> death, the entiret of the con!u(al estateappeared and was re(istered in him e7clusivel as owner. $hus, the presumption is that allsaid assets constituted his estate. $herefore F

)a1 0f the '0I3=N* wish to enforce their dubious ri(hts as substituted heirs to +4 of thecon!u(al estate )the other +4 is covered b the le(itime of C. N. 'od(es which can not bea?ected b an testamentar disposition1, their remed, if an, is to 8le their claim a(ainstthe estate of C. N. 'od(es, which should be entitled at the present time to full custod and

control of all the con!u(al estate of the spouses.

)b1 $he present proceedin(s, in which two estates e7ist under separate administration,where the administratri7 of the %innie &ane 'od(es estate e7ercises an oKcious ri(ht toob!ect and intervene in matters a?ectin( e7clusivel the C. N. 'od(es estate, is anomalous.

G'ERE/=RE, it is most respectfull praed that after trial and reception of evidence, this'onorable Court declare@

+. $hat the estate of %innie &ane 'od(es was and is composed e7clusivel of one-half )+;1share in the con!u(al estate of the spouses 'od(es, computed as of the date of her death onMa ;, +56"

;. $hat the other half of the con!u(al estate pertained e7clusivel to C. N. 'od(es as hisshare as partner in the con!u(al partnership"

. $hat all #rents, emoluments and income# of the con!u(al estate accruin( after %innie &ane'od(es> death pertains to C. N. 'od(es"

4. $hat C. N. 'od(es was the sole and e7clusive heir of the estate of %innie &ane 'od(es"

6. $hat, therefore, the entire con!u(al estate of the spouses located in the Philippines, plusall the #rents, emoluments and income# above-mentioned, now constitutes the estate of C.N. 'od(es, capable of distribution to his heirs upon termination of *pecial Proceedin(s No.+:;"

:. $hat PC0B, as administrator of the estate of C. N. 'od(es, is entitled to full and e7clusivecustod, control and mana(ement of all said properties" and

. $hat Avelina A. Ma(no, as administratri7 of the estate of %innie &ane 'od(es, as well asthe '0I3=N*, has no ri(ht to intervene or participate in the administration of the C. N.'od(es estate.

PC0B vs. Escolin*uccession


34/106

PC0B further pras for such and other relief as ma be deemed !ust and e2uitable in thepremises.#

)Record, pp. ;:6-;1

Before all of these motions of petitioner could be resolved, however, on 3ecember ;+, +5:6,

private respondent Ma(no 8led her own #Motion for the =Kcial 3eclaration of 'eirs of theEstate of %innie &ane 'od(es# as follows@

C=ME* N=G the Administratri7 of the Estate of %innie &ane 'od(es and, throu(hundersi(ned counsel, unto this 'onorable Court most respectfull states and manifests@

+. $hat the spouses Charles Newton 'od(es and %innie &ane 'od(es were American citienswho died at the Cit of 0loilo after havin( amassed and accumulated e7tensive properties inthe Philippines"

;. $hat on November ;;, +56;, %innie &ane 'od(es e7ecuted a last will and testament )theori(inal of this will now forms part of the records of these proceedin(s as E7hibit #C# andappears as *p. Proc. No. +, /olio 0, pp. +-+


35/106

dispose of an of the improved propert now owned b us located at, in or near the Cit of%ubboc9 $e7as, but he shall have the full ri(ht to lease, mana(e and en!o the same durin(his lifetime, above provided. 'e shall have the ri(ht to subdivide an farm land and sell lotstherein, and ma sell unimproved town lots.

/=R$'@ At the death of m said husband, Charles Newton 'od(es, 0 (ive, devise and

be2ueath all of the rest, residue and remainder of m estate, both real and personal,wherever situated or located, to be e2uall divided amon( m brothers and sisters, shareand share ali9e, namel@

Esta 'i(don, Emma 'owell, %eonard 'i(don, Ro 'i(don, *adie Rascoe, Era Boman andNimro 'i(don.

/0/$'@ 0n case of the death of an of m brothers andor sisters named in item /ourth,above, prior to the death of m husband, Charles Newton 'od(es, then it is m will andbe2uest that the heirs of such deceased brother or sister shall ta9e !ointl the share whichwould have (one to such brother or sister had she or he survived.#

. $hat under the provisions of the last will and testament alread above-2uoted, %innie &ane

'od(es (ave a life-estate or a usufruct over all her estate to her husband, Charles Newton'od(es, and a vested remainder-estate or the na9ed title over the same estate to herrelatives named therein"


36/106

be saddled with an more char(es or e7penditures which are purel personal to her innature, and her estate 9ept on earnin( such #rents, emoluments and income# b virtue oftheir havin( been e7pressl renounced, disclaimed and repudiated b Charles Newton'od(es to whom the were be2ueathed for life under the last will and testament of %innie

&ane 'od(es"

+. $hat, on the other hand, the one-half interest of Charles Newton 'od(es in the combinedcon!u(al estate e7istin( as of Ma ;, +56, while it ma have earned e7actl the sameamount of #rents, emoluments and income# as that of the share pertainin( to %innie &ane'od(es, continued to be burdened b char(es, e7penditures, and other dispositions whichare purel personal to him in nature, until the death of Charles Newton 'od(es himself on3ecember ;6, +5:;"

+4. $hat of all the assets of the combined con!u(al estate of %innie &ane 'od(es and CharlesNewton 'od(es as the e7ist toda, the estate of %innie &ane 'od(es is clearl entitled to aportion more than 8ft percent )6L1 as compared to the portion to which the estate ofCharles Newton 'od(es ma be entitled, which portions can be e7actl determined b thefollowin( manner@

a. An inventor must be made of the assets of the combined con!u(al estate as the e7istedon the death of %innie &ane 'od(es on Ma ;, +56 F one-half of these assets belon( tothe estate of %innie &ane 'od(es"

b. An accountin( must be made of the #rents, emoluments and income# of all these assets Fa(ain one-half of these belon( to the estate of %innie &ane 'od(es"

c. Ad!ustments must be made, after ma9in( a deduction of char(es, disbursements andother dispositions made b Charles Newton 'od(es personall and for his own personalaccount from Ma ;, +56 up to 3ecember ;6, +5:;, as well as other char(es,disbursements and other dispositions made for him and in his behalf since 3ecember ;6,+5:; up to the present"

+6. $hat there remains no other matter for disposition now insofar as the estate of %innie&ane 'od(es is concerned but to complete the li2uidation of her estate, se(re(ate them fromthe con!u(al estate, and distribute them to her heirs pursuant to her last will and testament.

G'ERE/=RE, premises considered, it is most respectfull moved and praed that this'onorable Court, after a hearin( on the factual matters raised b this motion, issue an order@

a. 3eclarin( the followin( persons, to wit@ Esta 'i(don, Emma 'owell, %eonard 'i(don, Aline'i(don, 3avid 'i(don, *adie Rascoe, Era Boman and Nimro 'i(don, as the sole heirs underthe last will and testament of %innie &ane 'od(es and as the onl persons entitled to herestate"

b. 3eterminin( the e7act value of the estate of %innie &ane 'od(es in accordance with thesstem enunciated in para(raph +4 of this motion"

c. After such determination orderin( its se(re(ation from the combined con!u(al estate andits deliver to the Administratri7 of the estate of %innie &ane 'od(es for distribution to theheirs to whom the properl belon( and appertain.

)Ireen Record on Appeal, pp.


37/106

whereupon, instead of further pressin( on its motion of &anuar


38/106

4. 3efer the hearin( and consideration of the motion for declaration of heirs in the $estateEstate of %innie &ane 'od(es until the matters hereinabove set forth are resolved.)Praer, Anne7 ## of Petition.1

=n =ctober +;, +5::, as alread indicated at the outset of this opinion, the respondent courtdenied the fore(oin( motion, holdin( thus@

= R 3 E R

=n record is a motion )ol. D, *p. +:;, pp. 45-451 dated April ;;, +5:: of administratorPC0B prain( that )+1 0mmediatel order Avelina Ma(no to account for and deliver to theadministrator of the estate of C. N. 'od(es all assets of the con!u(al partnership of thedeceased %innie &ane 'od(es and C. N. 'od(es, plus all the rents, emoluments and incometherefrom" );1 Pendin( the consideration of this motion, immediatel order Avelina Ma(no toturn over all her collections to the administrator PC0B" )1 3eclare the $estate Estate of%innie &ane 'od(es )*p. Proc. No. +1 closed" and )41 3efer the hearin( and considerationof the motion for declaration of heirs in the $estate Estate of %innie &ane 'od(es until thematters hereinabove set forth are resolved.

$his motion is predicated on the fact that there are matters pendin( before this court suchas )a1 the e7amination alread ordered b this 'onorable Court of documents relatin( to thealle(ation of Avelina Ma(no that Charles Newton 'od(es thru written declaration and swornpublic statements renounced, disclaimed and repudiated his life-estate and usufruct overthe estate of %innie &ane 'od(es )b1 the ur(ent motion for accountin( and deliver to theestate of C. N. 'od(es of all the assets of the con!u(al partnership of the deceased %innie

&ane 'od(es and C. N. 'od(es e7istin( as of Ma ;, +56 plus all the rents, emolumentsand income therefrom" )c1 various motions to resolve the aforesaid motion" and )d1manifestation of *eptember +4, +5:4, detailin( acts of interference of Avelina Ma(no undercolor of title as administratri7 of the estate of %innie &ane 'od(es.

$hese matters, accordin( to the instant motion, are all pre-!udicial involvin( no issues offacts and onl re2uire the resolution of 2uestion of law" that in the motion of =ctober 6,+5: it is alle(ed that in a motion dated 3ecember ++, +56 8led b Att. %eon Iellada asattorne for the e7ecutor C. N. 'od(es, the said e7ecutor C. N. 'od(es is not onl part ownerof the properties left as con!u(al but also the successor to all the properties left b thedeceased %innie &ane 'od(es.

*aid motion of 3ecember ++, +56 was approved b the Court in consonance with thewishes contained in the last will and testament of %innie &ane 'od(es.

$hat on April ;+, +565 this Court approved the inventor and accountin( submitted b C. N.'od(es thru counsel Att. %eon Iellada in a motion 8led on April +4, +565 statin( thereinthat e7ecutor C. N. 'od(es is the onl devisee or le(atee of %innie &ane 'od(es inaccordance with the last will and testament alread probated b the Court.

$hat on &ul +, +5: the Court approved the annual statement of accounts submitted bthe e7ecutor C. N. 'od(es thru his counsel Att. Iellada on &ul ;+, +5: wherein it is statedthat the e7ecutor, C. N. 'od(es is the onl devisee or le(atee of the deceased %innie &ane'od(es" that on Ma ;, +5:+ the Court approved the annual statement of accountssubmitted b e7ecutor, C. N. 'od(es for the ear +5: which was submitted b Att. Ielladaon April ;, +5:+ wherein it is stated that e7ecutor 'od(es is the onl devisee or le(atee ofthe deceased %innie &ane 'od(es"

< PC0B vs. Escolin*uccession


39/106

$hat durin( the hearin( on *eptember 6 and :, +5: the estate of C. N. 'od(es claimed allthe assets belon(in( to the deceased spouses %innie &ane 'od(es and C. N. 'od(es situatedin the Philippines" that administratri7 Ma(no has e7ecuted ille(al acts to the pre!udice of thetestate estate of C. N. 'od(es.

An opposition )*p. +:;, ol. D, pp. 44+6-44;+1 dated April ;, +5:: of administratri7 Ma(no

has been 8led as9in( that the motion be denied for lac9 of merit and that the motion for theoKcial declaration of heirs of the estate of %innie &ane 'od(es be set for presentation andreception of evidence.

0t is alle(ed in the aforesaid opposition that the e7amination of documents which are in thepossession of administratri7 Ma(no can be made prior to the hearin( of the motion for theoKcial declaration of heirs of the estate of %innie &ane 'od(es, durin( said hearin(.

$hat the matters raised in the PC0B>s motion of =ctober 6, +5: )as well as the other motion1dated *eptember +4, +5:4 have been consolidated for the purpose of presentation andreception of evidence with the hearin( on the determination of the heirs of the estate of%innie &ane 'od(es. 0t is further alle(ed in the opposition that the motion for the oKcialdeclaration of heirs of the estate of %innie &ane 'od(es is the one that constitutes a

pre!udicial 2uestion to the motions dated =ctober 6 and *eptember +4, +5:4 because if saidmotion is found meritorious and (ranted b the Court, the PC0B>s motions of =ctober 6, +5:and *eptember +4, +5:4 will become moot and academic since the are premised on theassumption and claim that the onl heir of %innie &ane 'od(es was C. N. 'od(es.

$hat the PC0B and counsel are estopped from further 2uestionin( the determination of heirsin the estate of %innie &ane 'od(es at this sta(e since it was PC0B as earl as &anuar


40/106

re!oinder to be well ta9en for the reason that so far there has been no oKcial declaration ofheirs in the testate estate of %innie &ane 'od(es and therefore no disposition of her estate.

G'ERE/=RE, the motion of the PC0B dated April ;;, +5:: is hereb 3EN0E3.)Anne7 #G#, Petition1

0n its motion dated November ;4, +5:: for the reconsideration of this order, petitioneralle(ed inter aliathat@

0t cannot be over-stressed that the motion of 3ecember ++, +56 was based on the fact that@

a. nder the last will and testament of the deceased, %innie &ane 'od(es, the late CharlesNewton 'od(es was the sole heir instituted insofar as her properties in the Philippines areconcerned"

b. *aid last will and testament vested upon the said late Charles Newton 'od(es ri(hts oversaid properties which, in sum, spell ownership, absolute and in fee simple"

c. *aid late Charles Newton 'od(es was, therefore, #not onl part owner of the propertiesleft as con!u(al, but also, the successor to all the properties left b the deceased %innie &ane'od(es.

%i9ewise, it cannot be over-stressed that the aforesaid motion was (ranted b this 'onorableCourt #for the reasons stated# therein.

A(ain, the motion of 3ecember ++, +56 praed that not onl #all the sales, conveances,leases, and mort(a(es e7ecuted b# the late Charles Newton 'od(es, but also all #thesubse2uent sales, conveances, leases, and mort(a(es ...# be approved and authoried. $his'onorable Court, in its order of 3ecember +4, +56, #for the reasons stated# in the aforesaidmotion, (ranted the same, and not onl approved all the sales, conveances, leases andmort(a(es of all properties left b the deceased %innie &ane 'od(es e7ecuted b the late

Charles Newton 'od(es, but also authoried #all subse2uent sales, conveances, leases andmort(a(es of the properties left b the said deceased %innie &ane 'od(es. )Anne7 #D#,Petition1

and reiterated its fundamental pose that the $estate Estate of %innie &ane 'od(es hadalread been factuall, althou(h not le(all, closed with the virtual declaration of 'od(esand ad!udication to him, as sole universal heir of all the properties of the estate of his wife,in the order of 3ecember +4, +56, Anne7 I. *till unpersuaded, on &ul +


41/106

+. $he order of 3ecember +5, +5:4 authoriin( pament b respondent Ma(no of overtimepa, )pp. ;;+, Ireen Record on Appeal1 to(ether with the subse2uent orders of &anuar 5,+5:6, )pp. ;+-;;,id.1 =ctober ;, +5:6, )pp. ;;,id.1 and /ebruar +6, +5:: )pp. 466-46:,id.1 repeatedl denin( motions for reconsideration thereof.

;. $he order of Au(ust :, +5:6 )pp. ;4sfees, fees of the respondent administratri7, etc. and the order of /ebruar +:, +5:: denin(reconsideration thereof.

6. $he order of November ;, +5:6 )pp. 4-6,id.1 allowin( appellee Gestern 0nstitute of$echnolo( to ma9e paments to either one or both of the administrators of the two estates

as well as the order of March , +5:: )p. 4:;,id.1 denin( reconsideration.

:. $he various orders hereinabove earlier enumerated approvin( deeds of sale e7ecuted brespondent Ma(no in favor of appellees Carles, Catedral, Pablito, Iuman, Coronado,Barrido, Causin(, &avier, %ucero and Batisanan, )see pp. 6 to of this opinion1, to(etherwith the two separate orders both dated 3ecember ;, +5:: )pp. :-


42/106

$'E =R3ER C=R$ ERRE3 0N APPR=0NI $'E /0NA% 3EE3* =/ *A%E 0N /A=R =/ $'EAPPE%%EE*, PEP0$= I. 0H%=RE*, E*P0R030=N PAR$0*A%A, G0N0/RE3= C. E*PA3A AN3R=*AR0= A%0NIA*A, EDEC$E3 BH $'E APPE%%EE, AE%0NA A. MAIN=, C=ER0NI PARCE%*=/ %AN3 =GNE3 BH $'E 3ECEA*E3, C'AR%E* NEG$=N '=3IE*, AN3 $'E C=N$RAC$* $=*E%% C=ER0NI G'0C' GERE EDEC$E3 BH '0M 3R0NI '0* %0/E$0ME.

to 000

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E 3EE3* =/ *A%E 0N /A=R =/ $'E APPE%%EE*,PEP0$= I. 0H%=RE*, E*P0R030=N PAR$0*A%A, G0N0/RE3= C. E*PA3A AN3 R=*AR0=A%0NIA*A, C=ER0NI PARCE%* =/ %AN3 /=R G'0C' $'EH 'AE NEER PA03 0N /%% 0NACC=R3ANCE G0$' $'E =R0I0NA% C=N$RAC$* $= *E%%.

0D to D00

$'E %=GER C=R$ ERRE3 0N 3E$ERM0N0NI $'E R0I'$* =/ =GNER*'0P =ER REA%PR=PER$H =/ $'E APPE%%EE*, PEP0$= I. 0H%=RE*, E*P0R030=N PAR$0*A%A, G0N0/RE3= C.E*PA3A AN3 R=*AR0= A%0NIA*A, G'0%E AC$0NI A* A PR=BA$E C=R$.

D000 to D

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E /0NA% 3EE3* =/ *A%E 0N /A=R =/ $'EAPPE%%EE* A3E%/A PREMAH%=N )%=$ N=. +;1, *AN$0AI= PACA=N*0*, AN3 A3E%/APREMAH%=N )%=$ N=. +41, EDEC$E3 BH $'E APPE%%EE, AE%0NA A. MAIN=, C=ER0NIPARCE%* =/ %AN3 =GNE3 BH $'E 3ECEA*E3, C'AR%E* NEG$=N '=3IE*, AN3 $'EC=N$RAC$* $= *E%% C=ER0NI G'0C' GERE EDEC$E3 BH '0M 3R0NI '0* %0/E$0ME.

D0 to D000

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E 3EE3* =/ *A%E 0N /A=R =/ $'E APPE%%EE*A3E%/A PREMAH%=N )%=$ N=. +;1, *AN$0AI= PACA=N*0*, AN3 A3E%/A PREMAH%=N )%=$

N=. +41 C=ER0NI PARCE%* =/ %AN3 /=R G'0C' $'EH 'AE NEER PA03 0N /%% 0NACC=R3ANCE G0$' $'E =R0I0NA% C=N$RAC$* $= *E%%.

D0D to DD0

$'E %=GER C=R$ ERRE3 0N 3E$ERM0N0NI $'E R0I'$* =/ =GNER*'0P =ER REA%PR=PER$H =/ $'E APPE%%EE* A3E%/A PREMAH%=N )%=$ N=. +;1, *AN$0AI= PACA=N*0*,AN3 A3E%/A PREMAH%=N )%=$ N=. +41 G'0%E AC$0NI A* A PR=BA$E C=R$.

DD00 to DD

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E /0NA% 3EE3* =/ *A%E 0N /A=R =/ $'E

APPE%%EE* %=REN= CAR%E*, &=*E PAB%0C=, A%/RE3= CA$E3RA% AN3 *A%A3=R *.IMAN, EDEC$E3 BH $'E APPE%%EE, AE%0NA A. MAIN=, C=ER0NI PARCE%* =/ %AN3=GNE3 BH $'E 3ECEA*E3, C'AR%E* NEG$=N '=3IE*, AN3 $'E C=N$RAC$* $= *E%%C=ER0NI G'0C' GERE EDEC$E3 BH '0M 3R0NI '0* %0/E$0ME.

DD0 to DD0D

4; PC0B vs. Escolin*uccession


43/106

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E /0NA% 3EE3 =/ *A%E EDEC$E3 0N /A=R =/$'E APPE%%EE*, %=REN= CAR%E*, &=*E PAB%0C=, A%/RE3= CA$E3RA% AN3 *A%A3=R *.IMAN PR*AN$ $= C=N$RAC$* $= *PE%% G'0C' GERE CANCE%%E3 AN3 RE*C0N3E3.

DDD to DDD0

$'E %=GER C=R$ ERRE3 0N 3E$ERM0N0NI $'E R0I'$* =/ =GNER*'0P =ER REA%PR=PER$H =/ $'E %=REN= CAR%E*, &=*E PAB%0C=, A%/RE3= CA$E3RA% AN3 *A%A3=R *.IMAN, G'0%E AC$0NI A* A PR=BA$E C=R$.

DDD to DDD0

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E /0NA% 3EE3* =/ *A%E 0N /A=R =/ $'EAPPE%%EE*, /%=REN0A BARR03= AN3 PR0/0CAC0=N C=R=NA3=, EDEC$E3 BH $'EAPPE%%EE, AE%0NA A. MAIN=, C=ER0NI PARCE%* =/ %AN3 =GNE3 BH $'E 3ECEA*E3,C'AR%E* NEG$=N '=3IE*, AN3 $'E C=N$RAC$* $= *E%% C=ER0NI G'0C' GEREEDEC$E3 BH '0M 3R0NI '0* %0/E$0ME.

DDD00 to DDD000

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E 3EE3* =/ *A%E 0N /A=R =/ $'E APPE%%EE*,/%=REN0A BARR03= AN3 PR0/0CAC0=N C=R=NA3=, A%$'=I' $'EH GERE 0N ARREAR* 0N

$'E PAHMEN$* AIREE3 P=N 0N $'E =R0I0NA% C=N$RAC$ $= *E%% G'0C' $'EH EDEC$E3G0$' $'E 3ECEA*E3, C'AR%E* NEG$=N '=3IE*, 0N $'E AM=N$ =/ P+,:


44/106

$'E %=GER C=R$ ERRE3 0N 3EPR00NI $'E 3ECEA*E3, C'AR%E* NEG$=N '=3IE*, =/'0* R0I'$, EDERC0*E3 $'R=I' '0* A3M0N0*$RA$0=N, $'E 0N*$AN$ APPE%%AN$, $=CANCE% $'E C=N$RAC$* $= *E%% =/ $'E APPE%%EE*, IRAC0AN= %CER=, AR0$E= $'=MA*

&AM0R AN3 ME%J0A3E* BA$0*ANAN, AN3 0N 3E$ERM0N0NI $'E R0I'$* =/ $'E *A03APPE%%EE* =ER REA% PR=PER$H G'0%E AC$0NI A* A PR=BA$E C=R$.

%

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E /0NA% 3EE3* =/ *A%E 0N /A=R =/ $'EAPPE%%EE, BE%CE*AR CA*0NI, EDEC$E3 BH $'E APPE%%EE, AE%0NA A. MAIN=,C=ER0NI PARCE%* =/ %AN3 =GNE3 BH $'E 3ECEA*E3, C'AR%E* NEG$=N '=3IE*, AN3

$'E C=N$RAC$* $= *E%% C=ER0NI G'0C' GERE EDEC$E3 BH '0M 3R0NI '0* %0/E$0ME.

%0

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E 3EE3* =/ *A%E 0N /A=R =/ $'E APPE%%EE,BE%CE*AR CA*0NI, A%$'=I' 'E GA* 0N ARREAR* 0N $'E PAHMEN$* AIREE3 P=N 0N

$'E =R0I0NA% C=N$RAC$ $= *E%% G'0C' 'E EDEC$E3 G0$' $'E 3ECEA*E3, C'AR%E*NEG$=N '=3IE*, 0N $'E AM=N$ =/ P;,.6.

%00

$'E %=GER C=R$ ERRE3 0N APPR=0NI $'E 3EE3 =/ *A%E 0N /A=R =/ $'E APPE%%EE,BE%CE*AR CA*0NI, A%$'=I' $'E *AME GA* N=$ EDEC$E3 0N ACC=R3ANCE G0$' $'ER%E* =/ C=R$.

%000 to %D0

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'E APPE%%AN$, P'0%0PP0NE C=MMERC0A% AN30N3*$R0A% BANQ $= *RREN3ER $'E =GNER>* 3P%0CA$E CER$0/0CA$E* =/ $0$%E =ER

$'E RE*PEC$0E %=$* C=ERE3 BH $'E 3EE3* =/ *A%E EDEC$E3 BH $'E APPE%%EE,

AE%0NA A. MAIN=, 0N /A=R =/ $'E =$'ER APPE%%EE*, &=*E PAB%0C=, A%/RE3=CA$E3RA%, *A%A3=R *. IMAN, /%REN0A BARR03=, PR0/0CAC0=N C=R=NA3=,BE%CE*AR CA*0NI, AR0$E= $'=MA* &AM0R, MAD0MA BA$0*ANAN AN3 IRAC0AN= %.%CER=.

%D00

$'E %=GER C=R$ ERRE3 0N RE*=%0NI $'E M=$0=N =/ $'E APPE%%EE, GE*$ERN0N*$0$$E =/ $EC'N=%=IH, 3A$E3 N=EMBER , +5:6, G0$'=$ ANH C=PH $'ERE=/'A0NI BEEN *ERE3 P=N $'E APPE%%AN$, P'0%0PP0NE C=MMERC0A% 0N3*$R0A% BANQ.

%D000

$'E %=GER C=R$ ERRE3 0N 'EAR0NI AN3 C=N*03ER0NI $'E M=$0=N =/ $'E APPE%%EE,GE*$ERN 0N*$0$$E =/ $EC'N=%=IH, 3A$E3 N=EMBER rd, +5:6, =N N=EMBER ;,+5:6, G'EN $'E N=$0CE /=R $'E 'EAR0NI $'ERE=/ GA* /=R N=EMBER ;, +5:6.

%D0



45/106

$'E %=GER C=R$ ERRE3 0N IRAN$0NI $'E APPE%%EE, GE*$ERN 0N*$0$$E =/$EC'N=%=IH A RE%0E/ =$'ER $'AN $'A$ PRAHE3 /=R 0N 0$* M=$0=N, 3A$E3 N=EMBER, +5:6, 0N $'E AB*ENCE =/ A PRAHER /=R IENERA% RE%0E/ C=N$A0NE3 $'ERE0N.

%D

$'E %=GER C=R$ ERRE3 0N A%%=G0NI $'E APPE%%EE, GE*$ERN 0N*$0$$E =/$EC'N=%=IH, $= C=N$0NE PAHMEN$* P=N A C=N$RAC$ $= *E%% $'E $ERM* AN3C=N30$0=N* =/ G'0C' 0$ 'A* /A0%E3 $= /%/0%%.

%D0

$'E %=GER C=R$ ERRE3 0N 3E$ERM0N0NI $'E R0I'$* =/ $'E APPE%%EE, GE*$ERN0N*$0$$E =/ $EC'N=%=IH =ER $'E REA% PR=PER$H *B&EC$ MA$$ER =/ $'E C=N$RAC$

$= *E%% 0$ EDEC$E3 G0$' $'E 3ECEA*E3, C'AR%E* NEG$=N '=3IE*, G'0%E AC$0NI A*A PR=BA$E C=R$.

%D00

%=GER C=R$ ERRE3 0N A%%=G0NI $'E C=N$0NA$0=N =/ PAHMEN$* BH $'E APPE%%EE,GE*$ERN 0N*$0$$E =/ $EC'N=%=IH, P=N A C=N$RAC$ $= *E%% EDEC$E3 BH 0$ AN3

$'E 3ECEA*E3, C'AR%E* NEG$=N '=3IE*, $= A PER*=N =$'ER $'AN '0* %AG/%%HAPP=0N$E3 A3M0N0*$RA$=R.

%D000

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'E PAHMEN$ =/ RE$A0NER>* /EE* /R=M $'E*PP=*E3 E*$A$E =/ $'E 3ECEA*E3, %0NN0E &ANE '=3IE*, G'EN $'ERE 0* NE0$'ER*C' E*$A$E N=R A**E$* $'ERE=/.

%D0D

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'E PAHMEN$ =/ RE$A0NER>* /EE* =/ %AGHER*=/ A%%EIE3 'E0R* $= $'E *PP=*E3 E*$A$E =/ $'E 3ECEA*E3, %0NN0E &ANE '=3IE*.

%DD

$'E %=GER C=R$ ERRE3 0N 0MP%EMEN$0NI $'E A%%EIE3 AIREEMEN$ BE$GEEN $'E'E0R* =/ $'E *PP=*E3 E*$A$E =/ $'E 3ECEA*E3, %0NN0E &ANE '=3IE*, AN3 $'E0R%AGHER*.

%DD0

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'E PREMA$RE 30*$R0B$0=N =/ E*$A$E A**E$*$= A%%EIE3 'E0R* =R BENE/0C0AR0E* $'ERE=/, BH GAH =/ RE$A0NER>* /EE*.

%DD00

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'A$ A%% /0NA% 3EE3* =/ *A%E EDEC$E3PR*AN$ $= C=N$RAC$* $= *E%% EN$ERE3 0N$= BH $'E 3ECEA*E3, C'AR%E* NEG$=N'=3IE*, 3R0NI '0* %0/E$0ME, BE *0INE3 &=0N$%H BH $'E APPE%%EE, AE%0NA A. MAIN=,



46/106

AN3 $'E APPE%%AN$, P'0%0PP0NE C=MMERC0A% AN3 0N3*$R0A% BANQ, AN3 N=$ BH $'E%A$$ER =N%H A* $'E %AG/%%H APP=0N$E3 A3M0N0*$RA$=R =/ '0* E*$A$E.

%DD000

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'E PAHMEN$ =/ %EIA% EDPEN*E* /R=M $'E

*PP=*E3 E*$A$E =/ $'E 3ECEA*E3, %0NN0E &ANE '=3IE*, G'EN $'ERE 0* NE0$'ER*C' E*$A$E N=R A**E$* $'ERE=/.

%DD0

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'E PAHMEN$ =/ %EIA% EDPEN*E* =/ %AGHER*=/ A%%EIE3 'E0R* $= $'E *PP=*E3 E*$A$E =/ $'E 3ECEA*E3, %0NN0E &ANE '=3IE*.

%DD

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'E PREMA$RE 30*$R0B$0=N =/ E*$A$E A**E$*$= A%%EIE3 'E0R* =R BENE/0C0AR0E* $'ERE=/, BH GAH =/ %EIA% EDPEN*E*.

%DD0

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'E PAHMEN$ =/ C=MPEN*A$0=N $= $'EPRP=R$E3 A3M0N0*$RA$R0D =/ $'E *PP=*E3 E*$A$E =/ $'E 3ECEA*E3, %0NN0E &ANE'=3IE*, $'E 0N*$AN$ APPE%%EE, AE%0NA A. MAIN=, G'EN $'ERE 0* NE0$'ER *C'E*$A$E N=R A**E$* $'ERE=/.

%DD00

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'A$ $'E /N3* =/ $'E $E*$A$E E*$A$E =/ $'E3ECEA*E3, C'AR%E* NEG$=N '=3IE*, BE P%ACE3 0N A &=0N$ ACC=N$ =/ $'EAPPE%%AN$, P'0%0PP0NE C=MMERC0A% AN3 0N3*$R0A% BANQ, AN3 $'E APPE%%EE, AE%0NAA. MAIN=, G'= 0* A C=MP%E$E *$RANIER $= $'E A/=RE*A03 E*$A$E.

%DD000

$'E %=GER C=R$ ERRE3 0N =R3ER0NI $'A$ $'E APPE%%EE, AE%0NA A. MAIN=, BE I0ENEJA% ACCE** $= $'E REC=R3* =/ $'E $E*$A$E E*$A$E =/ $'E 3ECEA*E3, C'AR%E*NEG$=N '=3IE*, G'EN *'E 0* A C=MP%E$E *$RANIER $= $'E A/=RE*A03 E*$A$E. )Pp.-s Brief.1

$o complete this rather elaborate, and unavoidabl e7tended narration of the factual settin(of these cases, it ma also be mentioned that an attempt was made b the heirs of Mrs.'od(es to have respondent Ma(no removed as administratri7, with the proposed

appointment of Benito &. %ope in her place, and that respondent court did actuall ordersuch proposed replacement, but the Court declared the said order of respondent courtviolative of its in!unction of Au(ust


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'od(es from certain heirs of her husband. /urther, in this connection, in the answer of PC0Bto the motion of respondent Ma(no to have it declared in contempt for disre(ardin( theCourt>s resolution of *eptember


48/106

Accordin(l, respondent Ma(no>s ob!ection to the present remed of certiorariandprohibition must be overruled.

Ge come now to the errors assi(ned b petitioner-appellant, Philippine Commercial 0ndustrial Ban9, )PC0B, for short1 in the petition as well as in its main brief as appellant.

000

"n /hether or ot 'here is Still An5 Part of the 'estate)state Mrs. (odges that ma5 4e Adudicated to her 4rothersand sisters as her estate, of !hich respondent Magno is theun6uestioned Administratri3 in special Proceedings :9=.

0n the petition, it is the position of PC0B that the respondent court e7ceeded its !urisdiction or(ravel abused its discretion in further reco(niin( after 3ecember +4, +56 the e7istenceof the $estate Estate of %innie &ane 'od(es and in sanctionin( purported acts ofadministration therein of respondent Ma(no. Main (round for such posture is that b theafore2uoted order of respondent court of said date, 'od(es was alread allowed to assertand e7ercise all his ri(hts as universal heir of his wife pursuant to the provisions of her will,

2uoted earlier, hence, nothin( else remains to be done in *pecial Proceedin(s + e7ceptto formall close it. 0n other words, the contention of PC0B is that in view of said order,nothin( more than a formal declaration of 'od(es as sole and e7clusive heir of his wife andthe conse2uent formal un2uali8ed ad!udication to him of all her estate remain to be done tocompletel close *pecial Proceedin(s +, hence respondent Ma(no should be consideredas havin( ceased to be Administratri7 of the $estate Estate of Mrs. 'od(es since then.

After carefull (oin( over the record, Ge feel constrained to hold that such pose is patentluntenable from whatever an(le it is e7amined.

$o start with, Ge cannot 8nd anwhere in respondent =rder of 3ecember +4, +56 the sensebein( read into it b PC0B. $he tenor of said order bears no su((estion at all to such e?ect.

$he declaration of heirs and distribution b the probate court of the estate of a decedent isits most important function, and this Court is not disposed to encoura(e !ud(es of probateproceedin(s to be less than de8nite, plain and speci8c in ma9in( orders in such re(ard, if forno other reason than that all parties concerned, li9e the heirs, the creditors, and most of allthe (overnment, the devisees and le(atees, should 9now with certaint what are and whentheir respective ri(hts and obli(ations ensuin( from the inheritance or in relation theretowould be(in or cease, as the case ma be, thereb avoidin( precisel the le(alcomplications and conse2uent liti(ations similar to those that have developed unnecessarilin the present cases. Ghile it is true that in instances wherein all the parties interested in theestate of a deceased person have alread actuall distributed amon( themselves theirrespective shares therein to the satisfaction of everone concerned and no ri(hts ofcreditors or third parties are adversel a?ected, it would naturall be almost ministerial forthe court to issue the 8nal order of declaration and distribution, still it is inconceivable thatthe special proceedin( instituted for the purpose ma be considered terminated, therespective ri(hts of all the parties concerned be deemed de8nitel settled, and the e7ecutoror administrator thereof be re(arded as automaticall dischar(ed and relieved alread of allfunctions and responsibilities without the correspondin( de8nite orders of the probate courtto such e?ect.

0ndeed, the law on the matter is speci8c, cate(orical and une2uivocal. *ection + of Rule 5provides@

4< PC0B vs. Escolin*uccession


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*EC$0=N +. /hen order for distri4ution of residue made. F Ghen the debts, funeral char(es,and e7penses of administration, the allowance to the widow and inheritance ta7, if an,char(eable to the estate in accordance with law have been paid, the court, on theapplication of the e7ecutor or administrator, or of a person interested in the estate, and afterhearin( upon notice, shall assi(n the residue of the estate to the persons entitled to thesame, namin( them and the proportions, or parts, to which each is entitled, and such

persons ma demand and recover their respective shares from the e7ecutor oradministrator, or an other person havin( the same in his possession. 0f there is acontrovers before the court as to who are the lawful heirs of the deceased person or as tothe distributive shares to which each person is entitled under the law, the controvers shallbe heard and decided as in ordinar cases.

No distribution shall be allowed until the pament of the obli(ations above mentioned hasbeen made or provided for, unless the distributees, or an of them (ive a bond, in a sum tobe 87ed b the court, conditioned for the pament of said obli(ations within such time asthe court directs.

$hese provisions cannot mean anthin( less than that in order that a proceedin( for thesettlement of the estate of a deceased ma be deemed read for 8nal closure, )+1 there

should have been issued alread an order of distribution or assi(nment of the estate of thedecedent amon( or to those entitled thereto b will or b law, but );1 such order shall not beissued until after it is shown that the #debts, funeral e7penses, e7penses of administration,allowances, ta7es, etc. char(eable to the estate# have been paid, which is but lo(ical andproper. )1 Besides, such an order is usuall issued upon proper and speci8c application forthe purpose of the interested part or parties, and not of the court.

... it is onl after, and not before, the pament of all debts, funeral char(es, e7penses ofadministration, allowance to the widow, and inheritance ta7 shall have been e?ected thatthe court should ma9e a declaration of heirs or of such persons as are entitled b law to theresidue. )Moran, Comments on the Rules of Court, ;nd ed., ol. 00, p. 5, citin( Capistranovs. Nadurata, 45 Phil., ;:" %ope vs. %ope, =?. Ia., 5+.1 )&0M=IA-=N v. BE%M=N$E,


50/106

which, certainl, cannot amount to the order of ad!udication of the estate of the decedent to'od(es contemplated in the law. 0n fact, the motion of 3ecember ++, +56 on which thecourt predicated the order in 2uestion did not pra for an such ad!udication at all. Ghat ismore, althou(h said motion did alle(e that #herein E7ecutor )'od(es1 is not onl part ownerof the properties left as con!u(al, but also, the successor to all the properties left b thedeceased %innie &ane 'od(es#, it si(ni8cantl added that #herein E7ecutor, as %e(atee )sic1,

has the ri(ht to sell, conve, lease or dispose of the properties in the Philippines F durin(his lifetime#, thereb indicatin( that what said motion contemplated was nothin( more thaneither the en!oment b 'od(es of his ri(hts under the particular portion of the dispositionsof his wife>s will which were to be operative onl durin( his lifetime or the use of his ownshare of the con!u(al estate, pendin( the termination of the proceedin(s. 0n other words, theauthorit referred to in said motions and orders is in the nature of that contemplated eitherin *ection ; of Rule +5 which permits, in appropriate cases, advance or partialimplementation of the terms of a dul probated will before 8nal ad!udication or distributionwhen the ri(hts of third parties would not be adversel a?ected thereb or in the establishedpractice of allowin( the survivin( spouse to dispose of his own share of he con!u(al estate,pendin( its 8nal li2uidation, when it appears that no creditors of the con!u(al partnershipwould be pre!udiced thereb, )see the Revised Rules of Court b /rancisco, ol. -B, +5 ed.p. intention in his motions, as E7ecutor, of Ma ;, +56and 3ecember ++, +56, the trial court>s orders (rantin( said motions, even in the terms inwhich the have been worded, could not have had the e?ect of an absolute andunconditional ad!udication unto 'od(es of the whole estate of his wife. None of them could



51/106

have deprived his brothers and sisters-in-law of their ri(hts under said will. And it ma beadded here that the fact that no one appeared to oppose the motions in 2uestion ma onlbe attributed, 8rstl, to the failure of 'od(es to send notices to an of them, as admitted inthe motion itself, and, secondl, to the fact that even if the had been noti8ed, the couldnot have ta9en said motions to be for the 8nal distribution and ad!udication of the estate,but merel for him to be able, pendin( such 8nal distribution and ad!udication, to either

e7ercise durin( his lifetime ri(hts of dominion over his wife>s estate in accordance with thebe2uest in his favor, which, as alread observed, ma be allowed under the broad terms of*ection ; of Rule +5, or ma9e use of his own share of the con!u(al estate. 0n an event, Gedo not believe that the trial court could have acted in the sense pretended b petitioner, notonl because of the clear lan(ua(e of the will but also because none of the interestedparties had been dul noti8ed of the motion and hearin( thereof. *tated di?erentl, if theorders of Ma ;, +56 and 3ecember 4, +56 were reall intended to be read in the sensecontended b petitioner, Ge would have no hesitanc in declarin( them null and void.

Petitioner cites the case ofAustria &s. 2entenilla, I. R. No. %-++


52/106

ad!udicacion, se dara por terminada la administracion, revelandole toda responsabilidad a laadministradora, cancelando su 8ana.

A*0 *E =R3ENA.

ndoubtedl, after the issuance of an order of such tenor, the closure of an proceedin(s for

the settlement of the estate of a deceased person cannot be but perfunctor.

0n the case at bar, as alread pointed out above, the two orders relied upon b petitioner donot appear e3facieto be of the same tenor and nature as the order !ust 2uoted, and, whatis more, the circumstances attendant to its issuance do not su((est that such was theintention of the court, for nothin( could have been more violative of the will of Mrs. 'od(es.

0ndeed, to infer from 'od(es> said motions and from his statements of accounts for the ears+56s estate in an absolute manner and

without re(ard to the contin(ent interests of her brothers and sisters, is to impute bad faithto him, an imputation which is not le(all permissible, much less warranted b the facts ofrecord herein. 'od(es 9new or ou(ht to have 9nown that, le(all spea9in(, the terms of hiswife>s will did not (ive him such a ri(ht. /actuall, there are enou(h circumstances e7tant inthe records of these cases indicatin( that he had no such intention to i(nore the ri(hts of hisco-heirs. 0n his ver motions in 2uestion, 'od(es alle(ed, thru counsel, that the #deceased%innie &ane 'od(es died leavin( no descendants and ascendants, e3cept 4rothers andsisters and herein petitioner, as sur&i&ing spouse, to inherit the properties of the decedent#,and even promised that #proper accountin( will be had F in all these transactions# which hehad submitted for approval and authoriation b the court, thereb implin( that he wasaware of his responsibilities vis-a-vis his co-heirs. As alle(ed b respondent Ma(no in herbrief as appellee@

nder date of April +4, +565, C. N. 'od(es 8led his 8rst #Account b the E7ecutor# of theestate of %innie &ane 'od(es. 0n the #*tatement of Networth of Mr. C. N. 'od(es and theEstate of %innie &ane 'od(es# as of 3ecember +, +56< anne7ed thereto, C. N. 'od(esreported that the combined con!u(al estate earned a net income of P;


53/106

nder date of April ;, +5:+, C. N. 'od(es 8led his third #Annual *tatement of Account bthe E7ecutor for the ear +5:# of the estate of %innie &ane 'od(es. 0n the #*tatement of NetGorth of Mr. C. N. 'od(es and the Estate of %innie &ane 'od(es# as of 3ecember +, +5:anne7ed thereto, C. N. 'od(es reported that the combined con!u(al estate earned a netincome of P+4,s estate, or, at least, so much thereof ashe would not have been able to dispose of durin( his lifetime, to her brothers and sisters inaccordance with her e7pressed desire, as intimated in his ta7 return in the nited *tates tobe more e7tensivel referred to anon. And assumin( that he did pa the correspondin(estate and inheritance ta7es in the Philippines on the basis of his bein( sole heir, suchpament is not necessaril inconsistent with his reco(nition of the ri(hts of his co-heirs.Githout purportin( to rule de8nitel on the matter in these proceedin(s, Ge mi(ht sa herethat Ge are inclined to the view that under the peculiar provisions of his wife>s will, and forpurposes of the applicable inheritance ta7 laws, 'od(es had to be considered as her soleheir, pendin( the actual transmission of the remainin( portion of her estate to her other

heirs, upon the eventualit of his death, and whatever ad!ustment mi(ht be warrantedshould there be an such remainder then is a matter that could well be ta9en care of b theinternal revenue authorities in due time.

0t is to be noted that the lawer, Att. %eon P. Iellada, who si(ned the motions of Ma ;,+56 and 3ecember ++, +56 and the aforementioned statements of account was the versame one who also subse2uentl si(ned and 8led the motion of 3ecember ;:, +5:; for theappointment of respondent Ma(no as #Administratri7 of the Estate of Mrs. %innie &ane'od(es# wherein it was alle(ed that #in accordance with the provisions of the last will andtestament of %innie &ane 'od(es, whatever real properties that ma remain at the death ofher husband, Charles Newton 'od(es, the said properties shall be e2uall divided amon(their heirs.# And it appearin( that said attorne was 'od(es> lawer as E7ecutor of theestate of his wife, it stands to reason that his understandin( of the situation, implicit in his

alle(ations !ust 2uoted, could somehow be reective of 'od(es> own understandin( thereof.

As a matter of fact, the alle(ations in the motion of the same Att. Iellada dated &ul +,+56, a #Re2uest for 0nclusion of the Name of Ro 'i(don in the =rder of the Court dated

&ul +5, +56, etc.#, reference to which is made in the above 2uotation from respondentMa(no>s brief, are over the oath of 'od(es himself, who veri8ed the motion. *aid alle(ationsread@

+. F $hat the 'on. Court issued orders dated &une ;5, +56, orderin( the probate of the will.



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;. F $hat in said order of the 'on. Court, the relatives of the deceased %innie &ane 'od(eswere enumerated. 'owever, in the petition as well as in the testimon of E7ecutor durin(the hearin(, the name Ro 'i(don was mentioned, but deceased. 0t was unintentionallomitted the heirs of said Ro 'i(don who are his wife Aline 'i(don and son 3avid 'i(don, allof a(e, and residents of Juinlan, $e7as, .*.A.

. F 'hat to straighten the records, and in order the heirs of deceased $o5 (igdon ma5 notthink or 4elie&e the5 !ere omitted, and that the5 !ere reall5 and are interested in theestate of deceased innie Jane (odges, it is re2uested of the 'on. Court to insert the namesof Aline 'i(don and 3avid 'i(don, wife and son of deceased Ro 'i(don

Documents

7. PCIB vs. Escolin