Law School Noob: [CASE DIGEST] Asturias v. CA (G.R. No. L-17895)

Monday, December 20, 2021

[CASE DIGEST] Asturias v. CA (G.R. No. L-17895)

September 30, 1963

FACTS:

Nicolas Miras obtained a loan from Spouses Laureano Asturias and Julia Orozco but failed to pay said loan resulting in the pacto de retro sale of a property of Miras to Sps. Asturias with redemption period of seven (7) years.

Upon the death of Laureano Asturias four years after the sale, Miras offered to redeem property but Julia, the widow of Laureano, requested postponement to which Miras agreed.

Upon the death of Julia seven years after the sale, Miras offered to redeem property but the heirs requested postponement to which Miras agreed.

A year after death of Julia, or eight years after sale, heirs agreed to partition the property and tried to enter and fence it.

Miras filed an action for recovery of property, forcible entry and to declare the contract of sale as one of loan, with usurious interest and is therefore null and void.

Heirs contend that testimony of Miras is inadmissible to vary the terms of the pacto de retro sale since under the rule on survivorship disqualification, an interested party is prohibited from testifying for his own interest and against the interests of a decedent about communications or transactions with the decedent.

Miras argued that the heirs of Sps. Asturias waived the survivorship disqualification rule, where no timely objection has been made in the course of the proceedings.

ISSUE:

Whether the prohibition under the survivorship disqualification rule can be waived by lack of timely objection and by testimony of prohibited matters. -- YES.
Whether the claim of Miras has prescribed. -- NO.

HELD:

The Supreme Court held that the heirs of Sps. Asturias are deemed to have waived the benefit and protection of the survivorship disqualification rule, where no timely objection has been made against the admission of such evidence and on the testimony of Felix Asturias, one of the petitioners, on the prohibited matters covered by the exclusion rule.

The benefit and protection of the survivorship disqualification rule are deemed to have been waived where no timely objection has been made against the admission of such evidence and where one of the parties who ought to invoke it made a testimony on the prohibited matters covered by the exclusion rule

The Court also held that the action by Miras is one of recovery of property or reivindication and not covered by the redemption period. Further, the Court held that the declaration of nullity of usurious contract is imprescriptible. A contract to hide a usurious agreement not only violates the law, but contravenes public policy. Such contract is illegal and void from its inception and the prayer for the declaration of its nullity is imprescriptible.

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