FAMILY CODE OF THE PHILIPPINES
TITLE IX: PARENTAL AUTHORITY
Chapter 4. Effect of Parental Authority Upon the Property of the
Children
Article 225. The father and the mother shall jointly exercise legal guardianship over the property of the unemancipated common child without the necessity of a court appointment. In case of disagreement, the father's decision shall prevail, unless there is a judicial order to the contrary.
Where
the market value of the property or the annual income of the child exceeds P50,000,
the parent concerned shall be required to furnish a bond in such amount as the
court may determine, but not less than ten per centum (10%) of the
value of the property or annual income, to guarantee the performance of the
obligations prescribed for general guardians.
A
verified petition for approval of the bond shall be filed in the proper court
of the place where the child resides, or, if the child resides in a foreign
country, in the proper court of the place where the property or any part
thereof is situated.
The
petition shall be docketed as a summary special proceeding in which all
incidents and issues regarding the performance of the obligations referred to
in the second paragraph of this Article shall be heard and resolved.
The
ordinary rules on guardianship shall be merely suppletory except when the child
is under substitute parental authority, or the guardian is a stranger, or a
parent has remarried, in which case the ordinary rules on guardianship shall
apply. (320a)
ü The legal
guardianship over the unemancipated child shall be jointly exercise by the
father and the mother. They need not be appointed by the court but if there’s
any disagreement father’s decision shall prevail.
ü There’s
no need for an appointment of the parents in order to become guardians of the
properties of their minor children.
ü If the
value of the properties exceeds Php 50,000.00, there’s a need to post a bond by
the parents.
ü If the
value is exactly Php 50,00.00 or even less, there’s no need to post a bond.
ü The purpose of the bond is to secure the
performance of the obligations of the guardians.
Article
226. The
property of the unemancipated child earned or acquired with his work or
industry or by onerous or gratuitous title shall belong to the child in
ownership and shall be devoted exclusively to the latter's support and
education, unless the title or transfer provides otherwise.
The
right of the parents over the fruits and income of the child's property shall
be limited primarily to the child's support and secondarily to the collective
daily needs of the family. (321a, 323a)
Article
227. If the
parents entrust the management or administration of any of their properties to
an unemancipated child, the net proceeds of such property shall belong to the
owner. The child shall be given a reasonable monthly allowance in an amount not
less than that which the owner would have paid if the administrator were a
stranger, unless the owner, grants the entire proceeds to the child. In any
case, the proceeds thus give in whole or in part shall not be charged to the
child's legitime. (322a)
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Article 226
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Article 227
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As to Acquisition
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Earned or acquired by the child through his work or industry by onerous
or gratuitous title.
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Property given by
the parents to the child for the latter to administer or manage.
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As to Ownership
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Owned by the child.
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Owned by the
parents.
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As to Who is the Usufructuary
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Child is also the usufructuary, but the child’s use of the property
shall be secondary to the collective needs of the family.
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Parents are the
usufructuary.
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As to Administration
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Property administered or managed by the parents.
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Property
administered or managed by the child.
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G.R. No. 105562 September 27, 1993
CASE DIGEST:
LUZ
PINEDA, MARILOU MONTENEGRO, VIRGINIA ALARCON, DINA LORENA AYO, CELIA CALUMBAG
and LUCIA LONTOK, petitioners,
vs.
HON.
COURT OF APPEALS and THE INSULAR LIFE ASSURANCE COMPANY, LIMITED, respondents.
Ponente:
Justice DAVIDE, JR.
FACTS:
Ø On 23 September
1983, Prime Marine Services, Inc. (PMSI), a crewing/manning outfit, procured
Group PoIicy from respondent-appellant Insular Life Assurance Co., Ltd. to
provide life insurance coverage to its sea-based employees enrolled under the
plan.
Ø On 17 February
1986, during the effectivity of the policy, six covered employees of the PMSI
perished at sea when their vessel, M/V Nemos, a Greek cargo vessel, sunk
somewhere in El Jadida, Morocco. They were survived by complainants-appellees,
the beneficiaries under the policy.
Ø Following
the tragic demise of their loved ones, complainants-appellees sought to claim
death benefits due them and, for this purpose, they approached the President
and General Manager of PMSI, Capt. Roberto Nuval.
Ø Capt.
Nuval showed willingness to assist complainants-appellees to recover Overseas
Workers Welfare Administration (OWWA) benefits from the POEA and to work for
the increase of their PANDIMAN and other benefits arising from the deaths of
their husbands/sons.
Ø They were
made to execute, with the exception of the spouses Alarcon, special powers of
attorney authorizing Capt. Nuval to, among others, "follow up, ask,
demand, collect and receive" for their benefit indemnities of sums of
money due them relative to the sinking of M/V Nemos.
Ø By virtue
of these written powers of attorney, complainants-appellees were able to
receive their respective death benefits.
Ø Unknown
to them, however, the PMSI, in its capacity as employer and policyholder of the
life insurance of its deceased workers, filed with respondent-appellant formal
claims for and in behalf of the beneficiaries, through its President, Capt.
Nuval.
Ø Among the
documents submitted by Capt. Nuval for the processing of the claims were five
special powers of attorney executed by complainants-appellees.
Ø On the basis of these and other documents duly
submitted, respondent-appellant drew against its account with the Bank of the
Philippine Islands on 27 May 1986 six (6) checks, four for P200,00.00 each, one
for P50,000.00 and another for P40,00.00, payable to the order of
complainants-appellees.
Ø These
checks were released to the treasurer of PMSI upon instructions of Capt. Nuval
over the phone to Mr. Mariano Urbano, Assistant Department Manager for Group
Administration Department of respondent-appellant.
Ø Capt.
Nuval, upon receipt of these checks from the treasurer, who happened to be his
son-in-law, endorsed and deposited them in his account with the Commercial Bank
of Manila, now Boston Bank.
Ø On 3 July
1989, after complainants-appellees learned that they were entitled, as
beneficiaries, to life insurance benefits under a group policy with
respondent-appellant, they sought to recover these benefits from Insular Life
but the latter denied their claim on the ground that the liability to complainants-appellees
was already extinguished upon delivery to and receipt by PMSI of the six (6)
checks issued in their names.
Ø On 20
June 1990, the Commission rendered its decision in favor of the complainants.
Ø The
Insular Life Assurance Company appealed stating that:
(a) Had
no jurisdiction over the case considering that the claims exceeded P100,000
(b) Erred
in holding that the powers of attorney relied upon by Insular Life were
insufficient to convey absolute authority to Capt. Nuval to demand, receive and
take delivery of the insurance proceeds pertaining to the petitioners
(c) Erred
in not giving credit to the version of Insular Life that the power of attorney
supposed to have been executed in favor of the Alarcons was missing, and
(d) Erred
in holding that Insular Life was liable for violating Section 180 of the
Insurance Code for having released to the surviving mothers the insurance
proceeds pertaining to the beneficiaries who were still minors despite the
failure of the former to obtain a court authorization or to post a bond.
Ø The Court
of Appeals eliminated the award to minor beneficiaries Dina Ayo and Lucia
Lontok.
Ø Hence,
this petition for certiorari was
filed by the beneficiary families.
ISSUE: Whether
or not the minor beneficiaries’ award shall be eliminated
RULING: Yes. The
Court ruled in favor of the petitioners. The Decision of the Court of Appeals
was set aside and the Decision of the Insurance Commission was reinstated.
Nor can the Court agree with the
opinion of the public respondent that since the shares of the minors in the
insurance proceeds are less than P50,000.00, then under Article 225 of the
Family Code their mothers could receive such shares without need of either
court appointments as guardian or the posting of a bond.
It is of the view that said Article had
repealed the third paragraph of Section 180 of the Insurance Code. 34 The
pertinent portion of Article 225 of the Family Code reads as follows: “Art.
225. The father and the mother shall jointly exercise legal guardianship over the
property of their unemancipated common child without the necessity of a court
appointment. In case of disagreement, the father's decision shall prevail,
unless there is judicial order to the contrary.”
Where the market value of the property
or the annual income of the child exceeds P50,000, the parent concerned shall
be required to furnish a bond in such amount as the court may determine, but
not less than ten per centum (10%) of the value of the property or annual
income, to guarantee the performance of the obligations prescribed for general
guardians.
It is clear from the said Article that
regardless of the value of the unemancipated common child's property, the
father and mother ipso jure becomes
the legal guardian of the child's property. However, if the market value of the
property or the annual income of the child exceeds P50,000.00, a bond has to be
posted by the parents concerned to guarantee the performance of the obligations
of a general guardian.
It must, however, be noted that the
second paragraph of Article 225 of the Family Code speaks of the "market
value of the property or the annual income of the child," which means,
therefore, the aggregate of the child's property or annual income; if this
exceeds P50,000.00, a bond is required. There is no evidence that the share of
each of the minors in the proceeds of the group policy in question is the
minor's only property. Without such evidence, it would not be safe to conclude
that, indeed, that is his only property.
References:
Judge Albano, Ed Vincent S. (2017). Family Code of the Philippines
https://www.lawphil.net/judjuris/juri1993/sep1993/gr_105562_1993.html