Atty Cruz Richard Land Annulment Spouses Community Conjugal

IX.

Rica petitioned for the annulment of her ten-year old marriage to Richard. Richard hired Atty. Cruz to represent him in the proceedings. In payment for Atty. Cruz's acceptance and legal fees, Richard conveyed to Atty. Cruz a parcel of land in Taguig that he recently purchased with his lotto winnings. The transfer documents were duly signed and Atty. Cruz immediately took possession by fencing off the property's entire perimeter.

Desperately needing money to pay for his mounting legal fees and his other needs and despite the transfer to Atty. Cruz, Richard offered the same parcel of land for sale to the spouses Garcia. After inspection of the land, the spouses considered it a good investment and purchased it from Richard.

Immediately after the sale, the spouses Garcia commenced the construction of a three-story building over the land, but they were prevented from doing this by Atty. Cruz who claimed he has a better right in light of the prior conveyance in his favor.

Is Atty. Cruz's claim correct? (8%)

SUGGESTED ANSWER:

No.  Atty. Cruz is not correct.  At first glance, it may appear  that Atty. Cruz is the one who has a better right because he first took possession of the property.  However, a lawyer is prohibited under Article 1491 of the Civil Code from acquiring the property and rights which may be the object of any litigation in which they may take part by virtue of their profession. While the suit is for annulment of marriage and it may be argued that the land itself is not the object of the litigation, the annulment of marriage, if granted will carry with it the liquidation of the absolute community or conjugal partnership of the spouses as the case may be (Art. 50 in relation to Art 43 of the Family Code). Richard purchased the land with his lotto winnings during the pendency of the suit for annulment and on the assumption that the parties are governed by the regime of absolute community or conjugal partnership, winnings from gambling or betting will form part thereof. Also, since the land is part of the absolute community or conjugal partnership of Richard and Rica, it may not be sold or alienated without the consent of the latter and any disposition or encumbrance of the property of the community or conjugal property without the consent of the other spouse is void. (Art. 96 and Art. 124 Family Code)