January 30, 1971
FACTS:
Jose Consuegra contracted two marriages in his lifetime, the first to respondent Rosario Diaz (with whom he had two children) in July 1937 and the second to Basilia Berdin (with whom he had seven children) in May 1957.
The second marriage was said to bhave been contracted in good faith while the first was subsisting.
As a shop foreman of the office of the District Engineer in the province of Surigao del Norte, Consuegra was a member of the Government Service Insurance System (GSIS). Upon his death in September 1965, the proceeds of his life insurance were paid by the GSIS to petitioner Berdin and her children, who were the beneficiaries in the named policy.
As Consuegra did not designate any beneficiary who would receive the retirement benefits due him, Diaz filed a claim for said retirement benefits, being the only legal heir of Consuegra.
Berdin and children opposed, asserting that being the beneficiaries named in the life insurance policy of Consuegra, they are the only ones entitled to receive the retirement insurance benefits. GSIS ruled that both are legal heirs and awarded Diaz half and Berdin and children the remaining half.
The Court of First Instance of Surigao upheld the GSIS decision.
Hence, the instant petition.
ISSUE:
Whether GSIS was correct in the allocation of the deceased's retirement insurance benefits. -- YES.
HELD:
Athough the second marriage can be presumed to be void ab initio as it was celebrated while the first marriage was still subsisting, still there is need for judicial declaration of such nullity. And inasmuch as the conjugal partnership formed by the second marriage was dissolved before judicial declaration of its nullity, "[t]he only lust and equitable solution in this case would be to recognize the right of the second wife to her share of one-half in the property acquired by her and her husband and consider the other half as pertaining to the conjugal partnership of the first marriage.