Ngirkelau v Trust Territory [1958] TTLawRp 12; 1 TTR 543 (4 December 1958)

1 TTR 543

NGIRKELAU, representing the Ngermidol lineage,
NGORIAKL, representing the Idid Clan,
Appellants

v.

TRUST TERRITORY OF THE PACIFIC ISLANDS,
JOSEPH C. PUTNAM, ESQUIRE, its Alien Property Custodian,
SUMMANG, MIKEL, and RECHEBONG KELMAL,
Appellees

Civil Action No. 103
Trial Division of the High Court
Palau District
December 4, 1958

Action to determine title to land in Koror Municipality which was listed in Japanese survey as individual land of former chief of plaintiff clan. Chief sold land to Japanese national in 1940 and title later vested in defendant Alien Property Custodian. Plaintiff contends title was held for benefit of clan and was not individual property of chief. The Trial Division of the High Court, Associate Justice Philip R. Toomin, held that even if lands were held for clan, sale conveyed good title to bona fide purchaser without notice, and Custodian as transferee occupies same position as that of prior bona fide purchaser.

Affirmed.

1. Palau Land Law – Chief's Title Land - Sale

Even if property in Palau Islands is held for benefit of clan by its chief, sale by him to purchaser either without authority or in violation of instructions conveys to bona fide purchaser without notice a title good against the world.

2. Real Property – Sales - Bona Fide Purchaser

Where title to real property is permitted by rightful owner to stand in name of another who makes unauthorized sale to third person who pays value without notice of the infirmity, true owner is estopped from setting up his title or interest.

3. Real Property – Sales - Bona Fide Purchaser

As between two innocent persons, one of whom must suffer consequences of breach of trust, one who made it possible by his act of confidence must bear the loss.

4. Real Property - Quiet Title - Laches

Where clan had ample opportunity to protect its interest in land held for it by chief, and number of years passed from date property was leased to bona fide purchaser to date of sale to him, clan is estopped to complain of transfer by chief whom it allowed to hold title.

5. Public Lands - Succeeding Sovereign

Trust Territory's Alien Property Custodian is empowered to vest in himself title to alien property, including property formerly owned by private Japanese national. (T.T.C., Sec. 533)

6. Public Lands - Succeeding Sovereign

Japanese national's title to property in Palau Islands passed to Trust Territory's Alien Property Custodian just as effectively as if made in appropriate deed of conveyance.

7. Public Lands - Succeeding Sovereign

Although no consideration was paid by Trust Territory's Alien Property Custodian for transfer of property from Japanese national to him, and therefore he does not fulfill all requirements of bona fide purchaser, he is entitled to same position as was occupied by prior bona fide purchaser.

TOOMIN, Associate Justice