G.R. No. 30873 , January 13, 1930
ESPERANZA BAELLO, plaintiff-appellant, vs. CEFERINO VILLANUEVA and ANASTACIO VILLANUEVA, defendants-appellees.

FACTS

The land in question belonged to the conjugal partnership of spouses Juan Cruz Sanchez and Esperanza Baello. On March 16, 1925, Juan Cruz Sanchez donated the entire parcel of land to the defendants, who are his grandchildren. After Juan Cruz Sanchez died, special proceedings for the settlement of his estate were instituted, but the liquidation of the conjugal property had not yet been completed. Esperanza Baello filed an action to annul the donation to the extent of one-half of the land, claiming it was her share. The trial court dismissed the complaint, ruling that the action was prematurely filed since the conjugal partnership had not yet been liquidated.

ISSUE

Whether the action to annul the husband’s donation of conjugal property can be instituted before the liquidation of the conjugal partnership.

RULING

No. The Supreme Court affirmed the dismissal of the complaint but provided a safeguard for the wife’s contingent right. The donation made by the husband of conjugal property, without falling under the exceptions permitted by law, is illegal under Article 1413 of the Civil Code. However, the nullity of such a donation can only be determined after the liquidation of the conjugal partnership, as it is only then that it can be ascertained whether the donation encroaches upon the wife’s share. Since the conjugal property had not been liquidated, the action for annulment was premature. Nevertheless, to protect the wife’s future right to seek annulment if the donation is found to prejudice her share, the Court ordered that a notation be made in the defendants’ title and in the property registry, indicating that the donation is subject to nullification depending on the outcome of the conjugal partnership liquidation. This ensures that any future transferee will be bound by this condition.