Case Digest: Muller v Muller

IN RE: PETITION FOR SEPARATION OF PROPERTY

G.R. No. 149615, August 29,2006

Doctrine:

He who seeks equity must do equity, and he who comes into equity must come with clean hands.

Facts:

Petitioner Elena Buenaventura Muller and respondent Helmut Muller were married in Hamburg, Germany on September 22, 1989. The couple resided in Germany at a house owned by respondent’s parents but decided to move and reside permanently in the Philippines in 1992. By this time, respondent had inherited the house in Germany from his parents which he sold and used the proceeds for the purchase of a parcel of land in Antipolo, Rizal at the cost of P528,000.00 and the construction of a house amounting to P2,300,000.00. The Antipolo property was registered in the name of petitioner, Elena Buenaventura Muller.

Due to incompatibilities and respondents alleged womanizing, drinking, and maltreatment, the spouses eventually separated.

On September 26, 1994, respondent filed a petition for separation of properties before the Regional Trial Court of Quezon City. The court granted said petition. It also decreed the separation of properties between them and ordered the equal partition of personal properties located within the country, excluding those acquired by gratuitous title during the marriage. With regard to the Antipolo property, the court held that it was acquired using paraphernal funds of the respondent. However, it ruled that respondent cannot recover his funds because the property was purchased in violation of Section 7, Article XII of the Constitution.

The respondent elevated the case to the Court of Appeals, which reversed the decision of the RTC.  It held that respondent merely prayed for reimbursement for the purchase of the Antipolo property, and not acquisition or transfer of ownership to him. It ordered the respondent to REIMBURSE the petitioner the amount of P528,000.00 for the acquisition of the land and the amount of P2,300,000.00 for the construction of the house situated in Antipolo, Rizal.

Elena Muller then filed a petition for review on certiorari.

Issue:

Whether or not respondent Helmut Muller is entitled to reimbursement.

Ruling:

No, respondent Helmut Muller is not entitled to reimbursement.

Ratio Decidendi:

There is an express prohibition against foreigners owning land in the Philippines.

Art. XII, Sec. 7 of the 1987 Constitution provides: “Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain.”

In the case at bar, the respondent willingly and knowingly bought the property despite a constitutional prohibition. And to get away with that constitutional prohibition, he put the property under the name of his Filipina wife. He tried to do indirectly what the fundamental law bars him to do directly.

With this, the Supreme Court ruled that respondent cannot seek reimbursement on the ground of equity. It has been held that equity as a rule will follow the law and will not permit that to be done indirectly which, because of public policy, cannot be done directly.

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