MERCADO-FEHR VS FEHROctober 23, 2003

Nature: Petition for review on certiorari of a decision of the CA Ponente: Puno, J.

FACTS: In March 1983, after 2 years of long-distance courtship, Elna left Cebu and moved in with Bruno in Manila. They had their first child in December the same year. They purchased a condominium unit (Suite 204) at LGC condominium by a contract TO sell dated July 26, 1983. They got married in March 1985. In 1998, trial court declared the marriage between Elna and Bruno, void ab initio under FC 36 and subsequently ordered the liquidation of their conjugal partnership. The court found Suite 204 to be exclusive property of Bruno because it was purchased on installment basis using Bruno’s exclusive funds prior to the marriage. Their properties were also divided into 3 (1/3-Elna; 1/3-Bruno; 1/3-2 children).

ISSUE: WON Suite 204 is Bruno’s exclusive property

HELD: No

RATIO: FC 147 applies in this case because 1) both of them were capacitated to marry each other; 2) they lived exclusively as husband and wife; and 3) their union is without the benefit of marriage or their marriage is void. Evidence shows that the property was acquired during their cohabitation and in applying FC 147, the rules on co-ownership should govern. Suite 204 must be considered as common property of Elna and Bruno. 3-way partition of properties does not apply also. Property regime should be divided in accordance with the law on co-ownership.