02 Tumang vs.

Laguio
G.R. No. L-50277 (February 14, 1980)
Antonio, Jr., J. / kam

Subject Matter: Rule 85 – Section 8

Summary: Magdalena Tumang (Tumang), wife of the deceased Dominador Tumang and administratix & executrix of his will,
filed a petition to declare the testate proceedings definitely terminated and closed. Guia Laguio (Laguio), one of her daughters,
opposed such petition, claiming that Tumang has not yet delivered all properties adjudicated to her and her minor children.
Since the final accounting of Tumang was already approved by the court, CFI denied Laguio’s opposition. CFI also held that
Laguio’s previous receipt of the cash dividends in question without requiring an accounting which is now being sought to be
rendered constitutes Laguio’s waiver of her right to an accounting of such dividends.
The CA forwarded this case to the SC. The SC held that since Tumang received additional funds of the estate after the
approval of her final accounts and before the issuance of an order finally closing the proceedings, she shall be required to file a
supplementary account of these additional funds. The SC also held that the duty of an executor or administrator to render an
account cannot be waived or disregarded. Tumang is required by the Court to render supplemental accounting.

Doctrines:
 An executor or administrator who receives assets of the estate after he has filed an account should file a
supplementary account thereof, and may be compelled to do so, but that it is only with respect to matters occurring
after the settlement of final account that representatives will be compelled to file supplementary account.
 The duty of an executor or administrator to render an account is not a mere incident of an administration proceeding
which can be waived or disregarded. It is a duty that has to be performed and duly acted upon by the court before the
administration is finally ordered closed and terminated, to the end that no part of the decedent’s estate be left
unaccounted for.

Action before the SC: Forwarded to the SC by the CA on the ground that it involves purely legal issues

Parties:
Administratrix-appellee Testate Estate of the Late Dominador Tumang, Magdalena A. Tumang
Movants-appellants Guia T. Laguio and her Minor Children

Facts:
1. CFI Pampanga - Magdalena Tumang (Tumang), widow of Dominador Tumang and administratix & executrix of his
will, filed a petition to declare the testate proceedings definitely terminated and closed with respect to herself and two
of her children, Melba Tumang Ticzon and Nestor A. Tumang.
2. These heirs have already acknowledged the receipt of their inheritance and in order for such properties to be
transferred in their names, there was need for an order of the court declaring the proceedings closed with respect to
the aforesaid heirs.
3. Opposition by Tumang’s other daughter: Guia T. Laguio (Laguio) and her children opposed the petition on the ff.
grounds:
a. Tumang, as as administratrix and executrix, had not yet delivered all properties adjudicated to them.
b. There could be no partial termination of the proceedings.
4. Tumang then withdrew the aforementioned petition.

Hearing of the motion to withdraw petition:

5. Tumang, as required by the court, filed a pleading captioned “Compliance”, alleging that estate and inheritance taxes
have been paid (BIR receipts) and that since the approval of the partition, no claim has been presented alleging that
not all the properties and dividends of the shares of stock adjudicated to Laguio and her minor children; and that with
such admission, the court no longer has jurisdiction to entertain the motion under consideration (certified by the
Deputy Clerk of Court).
6. CFI ruling: Motion to require Tumang to render accounting DENIED, as the final accounting of Tumang was already
approved.
7. MR denied, holding that Laguio's receipt of the cash dividends in question without first requiring the administratrix
the accounting now being sought to be rendered for purposes of determining the correctness of the cash dividends
constitutes already a waiver on her part. Laguio was also assisted by counsel in the person of her husband, who could
have rejected the receipt of the dividends if its correctness was being doubted.

Issues:
1. WON the court can still require the administratix to render an accounting of the cash and stock dividends received
even after the approval of her final accounts? (YES)
2. WON the duty of the administrator to render an account can be waived? (NO)
Ratio:
1. Section 8 of Rule 85 provides that the “executor or administrator shall render an account of his administration within
one (1) year from the time of receiving letters testamentary or of administration xxx, and he shall render such
further accounts as the court may require until the estate is wholly settled.”

In the instant case, further accounts by the executrix appear to be in order, in view of the fact that the dividends
sought to be accounted for are not included in the final accounts rendered by the executrix.
When can an administrator be compelled to file a supplementary account even after approval of the final accounts?
- An executor or administrator who receives assets of the estate after he has filed an account should file a
supplementary account thereof, and may be compelled to do so, but that it is only with respect to matters occuring
after the settlement of final account that representatives will be compelled to file supplementary account.

When is an administrator not required to file such supplementary account?

- It is only in a case where the petition to compel an executor to account after he has accounted and has been
discharged fails to allege that any further sums came into the hands of the executor, and the executor specifically
denies the receipt of any further sums that the accounting should be denied.

In this case, it was admitted that Tumang received funds of the estate after the approval of her final accounts and
before the issuance of an order finally closing the proceedings. She must, therefore, account for the same, in
consonance with her duty to account for all the assets of the decedent’s estate which have come into her possession by
virtue of her office. An executor should account for all his receipts and disbursements since his last accounting.

2. The SC disagrees with CFI’s finding that petitioners, by receiving the dividends without requiring an accounting, had
waived their right to do so.

The duty of an executor or administrator to render an account is not a mere incident of an administration proceeding
which can be waived or disregarded. It is a duty that has to be performed and duly acted upon by the court before the
administration is finally ordered closed and terminated, to the end that no part of the decedent’s estate be left
unaccounted for.

The fact that the final accounts had been approved does not divest the court of jurisdiction to require supplemental
accounting for, aside from the initial accounting, the Rules provide that “he shall render such further accounts as
the court may require until the estate is wholly settled.”

Dispositive: CFI orders are SET ASIDE. Executrix is hereby ordered to render a supplemental accounting of all cash and stock
dividends as well as other properties of the estate which came into her possession after the approval of her final accounts.