Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1926 > December 1926 Decisions > G.R. No. 24047 December 17, 1926 - ASIA BANKING CORPORATION v. LACSON COMPANY, INC.

048 Phil 482:




PHILIPPINE SUPREME COURT DECISIONS

EN BANC

[G.R. No. 24047. December 17, 1926. ]

ASIA BANKING CORPORATION, Plaintiff-Appellee, v. LACSON COMPANY, INC., Defendant-Appellant.

M. G. Goyena and Lacson & Lacson for Appellant.

Gibbs & McDonough and Roman Ozaeta for Appellee.

SYLLABUS


1. CONTRACTS; NOVATION. — Where being unable to pay certain bills of exchange which the drawee has accepted, the latter makes a mortgage in favor of the holder of said bills upon certain merchandise the value of which is sought to be collected through said bills, in order to secure the payment of said amount if the merchandise is sold and the integrity thereof while the sale is not effected, the execution of said mortgage does not constitute any novation of the obligation represented by said accepted bills, unless it is so expressly stated in said mortgage.


D E C I S I O N


VILLA-REAL, J. :


This is an appeal taken by Lacson Company, Inc., from the judgment of the Court of First Instance of Manila sentencing it to pay the Asia Banking Corporation the sum of P45,489.83, with the costs.

The transcript of the stenographic notes of the oral testimony taken during the trial was not forwarded to this court. In view of this omission on the part of the appellant company we are compelled to abide by the findings of fact made by the trial court in its judgment. And to the conclusions of law derived from the findings of fact which we find correct, we have to add only that in the case of Bank of the Philippine Islands v. Herridge (47 Phil., 57), this court, speaking through Mr. Justice Ostrand, said:jgc:chanrobles.com.ph

"CLAIMS OF THE BANK OF THE PHILIPPINE ISLANDS AND THE GUARANTY TRUST COMPANY OF NEW YORK

x       x       x


"On November 16, 1920, De Poli executed and delivered to said bank a chattel mortgage on the same property described in the receipts, in which chattel mortgage no mention was made of the warehouse receipts. This mortgage was registered in the Office of the Register of Deeds of Manila on November 18, 1920.

"The appellants argue that the obligations created by the warehouse receipts were extinguished by the chattel mortgage and that the validity of the claim must be determined by the provisions of the Chattel Mortgage Law and not by those of the Warehouse Receipts Act, or, in other words, that the chattel mortgage constituted a novation of the contract between the parties.

"Novations are never presumed and must be clearly proven. There is no evidence whatever in the record to show that a novation was intended. The chattel mortgage was evidently taken as additional security for the funds advanced by the bank and the transaction was probably brought about through a misconception of the relative values of warehouse receipts and chattel mortgages. As the warehouse receipts transferred the tittle to the goods to the bank, the chattel mortgage was both unnecessary and inefficatious and may be properly disregarded."cralaw virtua1aw library

In that case all the warehouse receipts were endorsed to the bank. Later on, De Poli mortgaged the merchandise covered by said receipts to secure the debt for which said receipts were endorsed, without making any mention of the aforesaid receipts.

In the instant case the merchandise mortgaged is almost all the merchandise covered by the eleven drafts, in the amount of which the defendant company is indebted. So that the merchandise mortgaged to the plaintiff corporation belongs to itself, and not to the defendant company. If the merchandise belonging to the debtor which was mortgaged to the creditor, as in the U. de Poli case, cannot constitute novation, much less can a chattel mortgage of the merchandise belonging to the same creditor constitute a novation, because the chattel mortgage in question did not secure the payment of a debt, but the payment of the value of the merchandise mortgaged in case of sale, and the integrity thereof while the sale was not effected.

For the foregoing reasons, and not finding any error in the judgment appealed from, the same is hereby affirmed in all its parts with the costs against the appellant. So ordered.

Street, Malcolm, Ostrand, Johns and Romualdez, JJ., concur.

Avanceña, C.J. and Johnson, J., did not take part.




Back to Home | Back to Main




















chanrobles.com





ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com






December-1926 Jurisprudence                 

  • G.R. No. 23451 December 2, 1926 - JUAN SUMULONG v. JOSEFA MORAN

    048 Phil 367

  • G.R. No. 26320 December 3, 1926 - S. W. O’BRIEN, ET AL. v. Hon. SIMPLICIO DEL ROSARIO, ET AL.

    049 Phil 657

  • G.R. No. 25604 December 6, 1926 - PEOPLE OF THE PHIL. ISLANDS v. ELIGIO AMANTE, ET AL.

    049 Phil 679

  • G.R. No. 26170 December 6, 1926 - PEOPLE OF THE PHIL. ISLANDS v. TEODORO LUCHICO

    049 Phil 689

  • G.R. No. 23871 December 7, 1926 - MUNICIPALITY OF LEMERY v. ANDRES MENDOZA, ET AL.

    048 Phil 415

  • G.R. No. 24995 December 8, 1926 - EUSEBIO MACASA, ET AL. v. HEIRS OF APOLONIO GARCIA

    049 Phil 698

  • G.R. No. 25235 December 9, 1926 - LIM JULIAN v. TIBURCIO LUTERO, ET AL.

    049 Phil 703

  • G.R. No. 23386 December 12, 1926 - MERCEDES GUSTILO, ET AL. v. HERMINIO MARAVILLA

    048 Phil 442

  • G.R. No. 25963 December 14, 1926 - SUSANA GLARAGA v. SUN LIFE ASSURANCE CO. OF CANADA, ET AL.

    049 Phil 737

  • G.R. No. 25976 December 16, 1926 - FRANCISCO J. GONZALES, ET AL. v. PAULINA FRANCISCO

    049 Phil 747

  • G.R. No. 24788 December 17, 1926 - FULGENCIO M. DEL CASTILLO v. RUFINO MADRILEÑA

    049 Phil 749

  • G.R. No. 25845 December 17, 1926 - PARIS MANILA PERFUME CO. v. PHOENIX ASSURANCE CO.

    049 Phil 753

  • G.R. No. 26202 December 17, 1926 - PEOPLE OF THE PHIL. ISLANDS v. FILEMON CABIGAS, ET AL.

    049 Phil 759

  • G.R. No. 26337 December 17, 1926 - CELSO LEDESMA v. MUN. OF ILOILO, ET AL.

    049 Phil 769

  • G.R. No. 25940 December 18, 1926 - ALEJANDRA MEJICA v. PUBLIC UTILITY COMMISSION, ET AL.

    049 Phil 774

  • G.R. No. 24047 December 17, 1926 - ASIA BANKING CORPORATION v. LACSON COMPANY, INC.

    048 Phil 482

  • G.R. No. 23483 December 18, 1926 - ANTONIO AMATA, ET AL. v. JUANA TABLIZO, ET AL.

    048 Phil 485

  • G.R. No. 23810 December 18, 1926 - CATALINO VALDERRAMA v. NORTH NEGROS SUGAR CO., INC.

    048 Phil 492

  • G.R. No. 25072 December 18, 1926 - SAN MIGUEL BREWERY v. DOMINGO LEGARDA

    048 Phil 507

  • G.R. No. 25954 December 18, 1926 - UNITED STATES OF AMERICA v. JUAN GISBERT, ET AL.

    049 Phil 779

  • G.R. No. 25267 December 24, 1926 - PEOPLE OF THE PHIL. ISLANDS v. MARIO PAMINTUAN

    049 Phil 793

  • G.R. No. 25488 December 24, 1926 - MANILA RAILROAD CO. v. ASUNCION MITCHEL VDA. DE SY QUIA

    049 Phil 801

  • G.R. No. 25739 December 24, 1926 - MAXIMO VIOLA, ET AL. v. VICENTA TECSON, ET AL.

    049 Phil 808

  • G.R. No. 25846 December 24, 1926 - JUAN CAMAHORT v. JUAN POSADAS

    049 Phil 811

  • G.R. No. 25950 December 24, 1926 - E. AWAD v. FILMA MERCANTILE CO., INC.

    049 Phil 816

  • G.R. No. 26483 December 24, 1926 - SMITH, BELL & CO., ET AL. v. Hon. FRANCISCO SANTAMARIA, ET AL.

    049 Phil 820

  • G.R. No. 26615 December 24, 1926 - MANUEL RODRIGUEZ v. Hon. JULIO LLORENTE, ET AL.

    049 Phil 823

  • G.R. No. 24930 December 31, 1926 - TAN PHO, ET AL. v. AMPARO NABLE JOSE

    049 Phil 828

  • G.R. No. 25694 December 31, 1926 - LEOCADIA ANGELO v. DIRECTOR OF LANDS, ET AL.

    049 Phil 838

  • G.R. No. 25811 December 31, 1926 - BPI v. ULRICH FOERSTER

    049 Phil 843

  • G.R. No. 26062 December 31, 1926 - JOSE V. RAMIREZ, ET AL. v. J. R. REDFERN

    049 Phil 849

  • G.R. No. 26374 December 31, 1926 - NICANOR JACINTO v. DIRECTOR OF LANDS

    049 Phil 853

  • G.R. No. 25853 December 31, 1926 - BACHRACH MOTOR CO. v. CIPRIANO E. UNSON

    050 Phil 981

  • G.R. No. 26118 December 31, 1926 - PHILIPPINE NATIONAL BANK v. MARIANO ESCUETA

    050 Phil 991

  • G.R. No. 23239 December 31, 1926 - FELIPE DIZON v. NICOLAS RIVERA, ET AL.

    048 Phil 996

  • G.R. No. 24003 December 31, 1926 - JULIAN SANTIAGO, ET AL. v. PEDRO SANTOS, ET AL.

    048 Phil 567

  • G.R. No. 23352 December 31, 1926 - PHILIPPINE SUGAR ESTATES DEVELOPMENT CO. v. JUAN M. POIZAT, ET AL.

    048 Phil 536