G.R. No. 224678 - SPOUSES JOSE MANUEL AND MARIA ESPERANZA RIDRUEJO STILIANOPOULOS, V. THE REGISTER OF DEEDS FOR LEGAZPI CITY AND THE NATIONAL TREASURER.

Ruling

accordingly, held that the claim of petitioners Spouses Jose Manuel (Jose Manuel) and Maria Esperanza Ridruejo Stilianopoulos (collectively; petitioners) against the Assurance Fund is already barred by prescription. The Facts This case stemmed from a Complaint [6] for Declaration of Nullity of Transfer Certificate of Title (TCT) No. 42486, Annulment of TCT No. 52392 and TCT No. 59654, and Recovery of Possession of Lot No. 1320 with Damages (subject complaint) filed by petitioners against respondents The Register of Deeds for Legazpi City (RD-Legazpi) and The National Treasurer (National Treasurer), as well as Jose Fernando Anduiza (Anduiza), Spouses Rowena Hua-Amurao (Rowena) and Edwin Amurao (collectively; Spouses Amurao), and Joseph Funtanares Co, et al . (the Co Group) before the RTC. Petitioners alleged that they own a 6,425-square meter property known as Lot No. 1320, as evidenced by TCT No. 13450 [7] in the name of Jose Manuel, who is a resident of Spain and without any administrator of said property in the Philippines. [8] On October 9, 1995, Anduiza caused the cancellation of TCT No. 13450 and issuance of TCT No. 42486 [9] in his name. [10] Thereafter, Anduiza mortgaged Lot No. 1320 to Rowena. [11] As a result of Anduiza's default, Rowena foreclosed the mortgage, and consequently, caused the cancellation of TCT No. 42486 and issuance of TCT No. 52392 [12] in her name on July 19, 2001. [13] On April 15, 2008, Rowena then sold Lot No. 1320 to the Co Group, resulting in the cancellation of TCT No. 52392 and issuance of TCT No. 59654 [14] in the latter's name. [15] According to petitioners, their discovery of the aforesaid transactions only on January 28, 2008 prompted them to file a complaint for recovery of title on May 2, 2008. [16] However, such complaint was dismissed for petitioners' failure to allege the assessed value of Lot No. 1320. Thus, they filed the subject complaint on March 18, 2009, praying that: ( a ) TCT Nos. 42486, 52392, and 59654 in the respective names of Anduiza, Rowena, and the Co Group be annulled; ( b ) all defendants be held solidarily liable to pay petitioners damages and attorney's fees; and ( c ) the RD-Legazpi and the National Treasurer, through the Assurance Fund, be ordered to pay petitioners' claims should the defendants be unable to pay the same in whole or in part. [17] In support of their complaint, petitioners claimed that they were deprived of the possession and ownership of Lot No. 1320 without negligence on their part and through fraud, and in consequence of errors, omissions, mistakes, or misfeasance of officials and employees of RD-Legazpi. [18] In their defense, Spouses Amurao and the Co Group both maintained that they purchased Lot No. 1320 in good faith and for value, and that petitioners' cause of action has already prescribed, considering that they only had ten (10) years from the issuance of TCT No. 42486 in the name of Anduiza on October 9, 1995 within which to file a complaint for recovery o