ROSITA G. TAN, EUSEBIO V. TAN, REMIGIO V. TAN, JR., EUFROSINA V. TAN, VIRGILIO V. TAN and EDUARDO V. TAN vs. COURT OF APPEALS and FERNANDO TAN KIAT.
G.R. No. 125861. September 9, 1998.
Facts:
Herein private respondent filed a complaint for recovery of property against herein petitioners. He claimed that he owns the subject properties as he bought it in 1954 from Mr. Tan Keh but was unable to effect immediate transfer of title in his own favor in view of his foreign nationality at the time of the sale. He alleged that, in 1958, Mr. Tan Keh executed a deed of sale to Remigio Tan, his brother and father of petitioners, with the understanding that the subject properties are to be held in trust by Remigio for the benefit of private respondent.
Petitioners filed a motion to dismiss the complaint, which was granted by the RTC. On appeal to the Court of Appeals, the latter reversed the trial court's decision.
Issue:
Whether or not the trial court's decision is correct.
Held:
No. The flaw in the conclusion of the respondent court that the complaint stated a cause of action is that, while conveniently echoing the general rule that averments in the complaint are deemed hypothetically admitted upon the filing of a motion to dismiss grounded on the failure to state a cause of action, it did not take into account the equally established limitations to such rule, i.e., that a motion to dismiss does not admit the truth of mere epithets of fraud; nor allegations of legal conclusions; nor an erroneous statement of law. A more judicious resolution of a motion to dismiss, therefore, necessitates that the court be not restricted to the consideration of the facts alleged in the complaint and inferences fairly deducible therefrom.
Courts may consider other facts within the range of judicial notice as well as relevant laws and jurisprudence which the courts are bound to take into account, and they are also fairly entitled to examine records/documents duly incorporated into the complaint by the pleader himself in ruling on the demurrer to the complaint.