G.R. No. 115410 February 27, 1998
JUAN CASABUENA, petitioner, vs. HON. COURT OF APPEALS and SPOUSES CIRIACO URDANETA AND OFELIA IPIL-URDANETA, respondents.

FACTS

Spouses Ciriaco and Ofelia Urdaneta were grantees of a parcel of land under the “Land of the Landless Program” of the City of Manila. On August 12, 1965, Ciriaco Urdaneta assigned his rights and interests in one-half of the lot to Arsenia Benin to cover a P500.00 debt. A deed of sale with mortgage was executed with the City of Manila. On February 16, 1967, after incurring an additional P2,000.00 debt, Ciriaco executed another deed of assignment covering the whole lot, with Benin agreeing to shoulder all obligations, including amortization payments to the City. The parties verbally agreed that Urdaneta could redeem the property within three years; failure to do so would transfer physical possession to Benin for fifteen years without actual transfer of title. A Transfer Certificate of Title was issued in the name of Urdaneta. Benin later transferred her right, title, and interest to brothers Candido and Juan Casabuena for P7,500.00. Benin constructed a duplex on the lot. After the Urdanetas fully paid the City, a Release of Mortgage was executed on February 7, 1984, extending the period of non-alienation from five to twenty years. Disputes arose, leading to an ejectment case filed by Benin’s administrator against Juan Casabuena, which was dismissed. Upon learning of the litigation, Urdaneta demanded that Benin and Casabuena vacate the property. After the Urdanetas entered into an agreement with Benin for the surrender of the property, they filed a complaint for recovery of possession against Juan Casabuena and Thelma Casabuena (representing Candido’s heirs). The lower court declared the Urdanetas as the true and lawful owners, a decision affirmed by the Court of Appeals.

ISSUE

Can a deed of assignment transfer ownership of the property to the assignee?

RULING

No. The deed of assignment did not transfer ownership of the property. An assignment of credit merely transfers the assignor’s credit and accessory rights to the assignee, who acquires the power to enforce it to the same extent as the assignor. It does not involve a transfer of ownership. Benin, as assignee, was subrogated to the rights and obligations of the Urdaneta spouses and was bound by the same conditions, including the prohibition against selling the property imposed by the City government. An assignee cannot acquire a greater right than the assignor. Since Benin did not acquire ownership rights over the land, she conveyed nothing to the Casabuenas with respect to the property. The Urdaneta spouses remained the owners of the lot. The decision of the Court of Appeals is AFFIRMED.