Trusts: Heirs of Labiste vs Heirs of Labiste G.R. No. 162033

Facts: Epifanio is an heir of Jose Labiste, purchased a land. Before the execution of the deed of conveyance, Epifanio executed an affidavit affirming that he and his uncle Tranquilino co-owned the lot because the money came from them both. Later on it was divided and the heirs of Tranquilino bought half interest. After the World War, the properties were destroyed and squatters lived on the land. Petitioner learned that an heir of the respondent filed for reconstitution.

Issue: Whether the petitioner's cause of action prescribed.

Held: The court of appeals erred in applying the principle of Laches because was is involved in this case is an express trust. The affidavit of Epifanio is in the nature of a trust agreement. The only act that can be construed as repudiation was when the respondent filed the petition for reconstitution in 1993 and since petitioners files their complaint in 1995, their cause has not yet prescribed. However, to recover half of the property covered by a private document to execute a public deed of sale.