Right of Alien Spouse over Conjugal Land

In In Re: Petition For Separation of Property-Elena Buenaventura Muller v. Helmut Muller the Court had already denied a claim  for reimbursement of the value of purchased parcels of Philippine land instituted by a foreigner Helmut Muller, against his former Filipina spouse, Elena Buenaventura Muller. It held that Helmut Muller cannot seek reimbursement on the ground of equity where it is clear that he willingly and knowingly bought the property despite the prohibition against foreign ownership of Philippine land enshrined under Section 7, Article XII of the 1987 Philippine Constitution.

As also explained in Muller, the time-honored principle is that he who seeks equity must do equity, and he who comes into equity must come with clean hands. Conversely stated, he who has done inequity shall not be accorded equity. Thus, a litigant may be denied relief by a court of equity on the ground that his conduct has been inequitable, unfair and dishonest, or fraudulent, or deceitful.

In any event, the Court cannot, even on the grounds of equity, grant reimbursement to petitioner given that he acquired no right whatsoever over the subject properties by virtue of its unconstitutional purchase. It is well established that equity as a rule will follow the law and will not permit that to be done indirectly which, because of public policy, cannot be done directly. Surely, a contract that violates the Constitution and the law is null and void, vests no rights, creates no obligations and produces no legal effect at all. Corollary thereto, under Article 1412 of the Civil Code, petitioner cannot have the subject properties deeded to him or allow him to recover the money he had spent for the purchase thereof. The law will not aid either party to an illegal contract or agreement; it leaves the parties where it finds them. Indeed, one cannot salvage any rights from an unconstitutional transaction knowingly entered into

Neither can the Court grant petitioner’s claim for reimbursement on the basis of unjust enrichment. As held in Frenzel v. Catito, a case also involving a foreigner seeking monetary reimbursement for money spent on purchase of Philippine land, the provision on unjust enrichment does not apply if the action is proscribed by the Constitution.

Nor would the denial of his claim amount to an injustice based on his foreign citizenship. Precisely, it is the Constitution itself which demarcates the rights of citizens and non-citizens in owning Philippine land. To be sure, the constitutional ban against foreigners applies only to ownership of Philippine land and not to the improvements built thereon, such as the two (2) houses standing on Lots 1 and 2142 which were properly declared to be co-owned by the parties subject to partition. Needless to state, the purpose of the  prohibition  is  to  conserve  the  national  patrimony and  it  is  this  policy which the Court is duty-bound to protect (Willem Beumer Vs. Avelina Amores, G.R. No. 195670. December 3, 2012).