OLAGUER v. ONJUCO

OLAGUER v. ONJUCO

G.R. No. 173312; August 26, 2008

Ponente: J. Chico-Nazario

FACTS:

Lino Olaguer died on October 3, 1957 so Special Proceedings No. 528 for probate of will was filed in the then Court of First Instance of Albay. Defendant Olivia P. Olaguer was appointed as administrator pursuant to the will. Later, defendant Eduardo Olaguer was appointed as co-administrator. 

In the order of the probate court dated April 4, 1961, some properties of the estate were authorized to be sold to pay obligations of the estate. 

Relying upon the order, but without prior notice or permission from the Probate Court, defendants Olivia P. Olaguer and Eduardo Olaguer on November 1, 1965 sold to Estanislao Olaguer 10 parcels of land. The sale to was approved by the Probate Court on November 12, 1965.

On July 7, 1966, defendant Olivia P. Olaguer executed a Special Power of Attorney in favor of defendant Jose A. Olaguer, authorizing the latter to "sell, mortgage, assign, transfer, endorse and deliver" of 6 properties.

On July 7, 1966, Estanislao Olaguer executed a Special Power of Attorney in favor of Jose A. Olaguer authorizing the latter to "sell, mortgage, assign, transfer, endorse and deliver" the 9 properties.

By virtue of this Special Power of Attorney, on March 1, 1967, Jose A. Olaguer as Attorney-in-Fact of Estanislao Olaguer mortgaged Lots 7589, 7593 and 7396 to defendant PNB as security for a loan of 10,000 Pesos. The mortgage was foreclosed by the PNB on June 13, 1973 and the properties mortgage were sold at public auction to PNB. On December 10, 1990, the PNB transferred the properties to the Republic of the Philippines pursuant to Exec. Order No. 407 dated June 14, 1990 for agrarian reform purposes. 

On October 29, 1966, Estanislao Olaguer executed a General Power of Attorney in favor of Jose A. Olaguer, authorizing the latter to exercise general control and supervision over all of his business and properties, and among others, to sell or mortgage any of his properties.

On December 29, 1966, Estanislao Olaguer sold to Jose A. Olaguer for 15,000 the 10 parcels of land he bought from Olivia P. Olaguer and Eduardo Olaguer.

On March 16, 1968, Estanislao Olaguer sold to Jose A. Olaguer for 1 Peso and other valuable consideration 2 parcels of land which have a total area of 2.5 hectares. 

On June 5, 1968, Estanislao Olaguer sold another 2 lots to Jose A. Olaguer for 1 Peso and other valuable consideration. 

On May 13, 1971, Jose A. Olaguer in his capacity as Attorney in-Fact of Estanislao Olaguer sold to his son Virgilio Olaguer for 1 Peso and other valuable consideration.

On July 15, 1974, Jose A. Olaguer sold to his son Virgilio Olaguer Lot No. 4521 and Lot No. 4522 for 1,000 Pesos. 

On September 16, 1978 Virgilio Olaguer executed a General Power of Attorney in favor of Jose A. Olaguer authorizing the latter to exercise general control and supervision over all of his business and properties and among others, to sell or mortgage the same.

Olivia P. Olaguer and Eduardo Olaguer were removed as administrators of the estate and on February 12, 1980, plaintiff Ma. Linda Olaguer Montayre was appointed administrator by the Probate Court. 

The decedent Lino Olaguer have had three marriages. He was first married to Margarita Ofemaria who died April 6, 1925. His second wife was Gloria Buenaventura who died on July 2, 1937. The third wife was the defendant Olivia P. Olaguer.

Jose Olaguer acting upon the general power of attorney sold 8 parcels of land to Emilio Ongjoco. 

On 28 January 1980, the Estate of Lino Olaguer filed an action for the Annulment of Sales of Real Property and/or Cancellation of Titles in the then Court of First Instance of Albay. The plaintiffs therein alleged that the sales of the following properties belonging to the Estate of Lino Olaguer to Estanislao Olaguer were absolutely simulated or fictitious, the plaintiffs likewise prayed that the resulting Transfer Certificates of Title issued to Jose Olaguer, Virgilio Olaguer, Cipriano Duran and the PNB be annulled.

ISSUE:

Whether General Power of Attorney was sufficient to effect the sale of the subject properties

HELD:

Yes, the general power of attorney was sufficient

The Supreme Court held that while the law requires a special power of attorney, the general power of attorney was sufficient in this case, as Jose A. Olaguer was expressly empowered to sell any of Virgilio's properties; and to sign, execute, acknowledge and deliver any agreement therefor.  Even if a document is designated as a general power of attorney, the requirement of a special power of attorney is met if there is a clear mandate from the principal specifically authorizing the performance of the act.  The special power of attorney can be included in the general power when the act or transaction for which the special power is required is specified therein.  

On its face, the written power of attorney contained the signature of Virgilio Olaguer and was duly notarized. As such, the same is considered a public document and it has in its favor the presumption of authenticity and due execution, which can only be contradicted by clear and convincing evidence.