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August-1950 Jurisprudence                 

  • G.R. No. L-2200 August 2, 1950 - RAMON N. BILBAO v. DALMACIO BILBAO, ET AL.

    087 Phil 144

  • G.R. No. L-2837 August 4, 1950 - ROSARIO S. VDA. DE LACSON, ET AL. v. ABELARDO G. DIAZ

    087 Phil 150

  • G.R. No. L-3951 August 7, 1950 - JESUS ALVARADO v. DIRECTOR OF PRISONS

    087 Phil 157

  • G.R. No. L-2397 August 9, 1950 - TOMASA QUIMSON, ET AL. v. FRANCISCO ROSETE

    087 Phil 159

  • G.R. No. L-3236 August 11, 1950 - ALFREDO CASTRO v. JOSE T. SURTIDA, ET AL.

    087 Phil 166

  • G.R. No. L-3395 August 11, 1950 - EL PUEBLO DE FILIPINAS v. FEDERICO MERCADO

    087 Phil 170

  • G.R. No. L-3734 August 14, 1950 - JOSE L. TALENS v. FELIPE GARCIA, ET AL.

    087 Phil 173

  • G.R. No. L-3224 August 15, 1950 - RURAL PROGRESS ADMINISTRATION v. EULOGIO F. DE GUZMAN, ET AL.

    087 Phil 176

  • G.R. No. L-3994 August 16, 1950 - JUANITO B. LLOBRERA v. DIRECTOR OF PRISONS

    087 Phil 179

  • G.R. No. L-3887 August 21, 1950 - FELIPE R. HIPOLITO v. CITY OF MANILA, ET AL.

    087 Phil 180

  • G.R. No. L-2724 August 24, 1950 - JOSE DE LEON, ET AL. v. ASUNCION SORIANO

    087 Phil 193

  • G.R. No. L-3251 August 24, 1950 - FELICIANO JOVER LEDESMA v. BUEN MORALES, ET AL.

    087 Phil 199

  • G.R. No. L-2939 August 29, 1950 - PLACIDO NOCEDA v. MARCOS ESCOBAR

    087 Phil 204

  • G.R. Nos. L-3274, L-3292 & L-3295 August 29, 1950 - HARRY LYONS, ET AL. v. CONRADO V. SANCHEZ

    087 Phil 209

  • G.R. No. L-3661 August 29, 1950 - SANTIAGO ICE PLANT & CO., INC. v. RAFAEL LAHOZ

    087 Phil 221

  • G.R. No. 49180 August 29, 1950 - RUFINO BUENO v. DOMINADOR B. AMBROSIO, ET AL.

    087 Phil 225

  • G.R. No. L-2671 August 30, 1950 - ANICETA IBURAN v. MAGDALENO LABES

    087 Phil 234

  • G.R. No. L-3280 August 30, 1950 - FRANCISCO LLENADO, ET AL. v. MARIA HILVANO

    087 Phil 239

  • G.R. No. L-3942 August 30, 1950 - VICTOR B. SESE v. AGUSTIN P. MONTESA, ET AL.

    087 Phil 245

  • G.R. No. L-1669 August 31, 1950 - PAZ LOPEZ DE CONSTANTINO v. ASIA LIFE INSURANCE COMPANY

    087 Phil 248

  • G.R. No. L-1931 August 31, 1950 - PEOPLE OF THE PHIL. v. CHUA HUY, ET AL.

    087 Phil 258

  • G.R. No. L-2042 August 31, 1950 - AURORA PANER v. NICASIO YATCO

    087 Phil 271

  • G.R. No. L-2202 August 31, 1950 - SIMEON MANDAC v. EUSTAQUIO GUMARAD, ET AL.

    087 Phil 278

  • G.R. Nos. L-3045 & L-3046 August 31, 1950 - PEOPLE OF THE PHIL. v. ANASTACIO PAZ

    087 Phil 282

  • G.R. No. L-3881 August 31, 1950 - EDUARDO DE LOS SANTOS v. GIL R. MALLARE

    087 Phil 288

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    G.R. No. L-2939   August 29, 1950 - PLACIDO NOCEDA v. MARCOS ESCOBAR<br /><br />087 Phil 204

     
    PHILIPPINE SUPREME COURT DECISIONS

    EN BANC

    [G.R. No. L-2939. August 29, 1950.]

    PLACIDO NOCEDA, Plaintiff-Appellant, v. MARCOS ESCOBAR, Defendant-Appellee.

    Faelnar & Binamira, for Appellant.

    Zosa & Zosa, for Appellee.

    SYLLABUS


    1. INTERNATIONAL LAW; SEIZURE OF PRIVATE PROPERTY BY ARMY OF OCCUPATION; FACTS OF CASE AT BAR. — N was the owner of a motorboat which he used to transport passengers and cargo between Albay and Catanduanes. In February, 1942, Japanese armed forces, then occupying the territory, seized said vessel and utilized it during the progress of the war in transporting troops, ammunition, an supplies. After the liberation of the Philippines from the Japanese, the United States armed forces found said vessel in Cebu and sold it as an emergency to A, who in turn sold it to E. N brought the action to recover the vessel from E. Held: Under article 53 of the "Regulations Respecting the Laws and Customs of War or Land," appended to the Hague Convention of 1907, the Japanese army of occupation was permitted to seized said vessel although it belonged to a private person, by was required to restore it at the conclusion of peace and to pay indemnities therefor. Hence the title to the vessel did not pass to the Japanese but remained in the power. The vessel did not become enemy property and was not such when the Unites States military authorities seized and sold it to A. Such sale was not valid as against the plaintiff.

    2. POSSESSION IN GOOD FAITH; WHEN IT ENDS. — Upon the facts of the case the defendant was a purchaser in good faith until the moment the plaintiff, as owner of the vessel, claimed it from the defendant judicially or extrajudicially. From that moment the defendant was not unaware that his possession was wrongful. (Article 435, Civil Code; Ortiz v. Fuentbella, 27 Phil., 537.)

    3. ID.; FRUITS AND NECESSARY EXPENDITURE. — Fruits received by one in possession in good faith, before possession is legally interrupted, become his own. (Article 451.) Necessary expenditure shall be refunded to every possessor; but only the possessor in good faith may retain the thing until they are repaid to him. Useful expenditures shall be paid to the possessor in good faith. (Article 453.) Applying these provisions of the Civil Code, the defendant must account to the plaintiff for the net earnings of the vessel from the time the plaintiff claimed said vessel from him judicially or extrajudicially, and whatever necessary expenditure he may have made on said vessel, as well as all useful expenditures made before the possession was legally interrupted may be deducted from or set off against said earnings.


    D E C I S I O N


    OZAETA, J.:


    Plaintiff-appellant was the owner of a motor cutter named "N. S. del Rosario I." which was registered in his name in the office of the Insular Collector of Customs, Manila, on January 19, 1939, and which, according to said plaintiff, had cost him about P16,000. He used it to transport passengers and cargo between Albay and Catanduanes. On February 11, 1942, that is to say, during the enemy occupation of the Bicol provinces, the Japanese armed forces seized the said vessel and utilized it during the progress of the war in transporting troops, ammunition, and supplies.

    After the liberation of the Philippines from the Japanese, the United States armed forces found said vessel in Cebu and, on May 17, 1945, thru the PCAU, sold it as enemy property to one Vicente Asuncion for P100. The bill of sale executed by Lt. Col. Pete W. Scott, "C.O. PCAU 15, Agent, United States Government," described said vessel as a "Japanese fishing type boat approximately 60 feet in length . . . now partially submerged and beached between Cebu City, Cebu, and the town of Mandawe, Cebu." The bill of sale further recited: "It is expressly understood that party of the first part warrants nothing in this transaction except transfer of title to said property." On August 14, 1945, Vicente Asuncion sold said vessel for P8,000 to the defendant Marcos Escobar, who registered the deed of sale in the office of the Collector of Customs of Cebu on October 25, 1945. Thereafter Escobar caused extensive repairs to be made on the vessel and named it "Long Distance."cralaw virtua1aw library

    The present action was instituted by the plaintiff in the Court of First Instance of Cebu to recover from the defendant the possession of said vessel or its value in the sum of P20,000, plus damages in the sum of P5,000.

    Upon the trial of the case, in which the principal issue was the identity of the vessel, the trial court, after an ocular inspection of the vessel in question and after hearing the testimony of witnesses, found in effect that the vessel now named "Long Distance" in the possession of the defendant is the same vessel formerly named "N. S. del Rosario I," which the Japanese armed forces had seized in Albay from the plaintiff in February, 1942. The trial court, however, held that the boat in question had been lawfully seized and confiscated by the Japanese armed forces and that "as a necessary consequence of the validity of the seizure by the Japanese of the vessel in dispute, the United States armed forces acquired a valid title over the same when in the course of liberation of the Philippines said authority took possession of the vessel in Philippine waters." Further holding that the defendant had acquired a valid title to said vessel, the trial court dismissed plaintiff’s complaint, without costs. From that judgment the plaintiff appealed.

    Appellant’s contention is predicated on article 3, Chapter II of the Hague Conventions of 1907 relating to the exercise of the rights of capture in naval war, which reads as follows:jgc:chanrobles.com.ph

    "Vessels used exclusively for fishing along the coast or small boats employed in local trade are exempt from capture, as well as their appliances, rigging, tackle, and cargo."cralaw virtua1aw library

    We think this article is not applicable, for the reason that when the Japanese armed forces seized the vessel in question in the Bicol provinces on February 11, 1942, they were already in military occupation of that territory. The vessel was not captured in the course of a naval war, but was seized by the military occupant, who used it in the prosecution of the war. We think the provision of the Hague Conventions of 1907 that is applicable here is the second paragraph of article 53 of the "Regulations Respecting the Laws and Customs of War on Land." which reads as follows:jgc:chanrobles.com.ph

    "ART. 53. An army of occupation can only take possession of the cash, funds, and realizable securities belonging strictly to the State, depots of arms, of transport, stores and supplies, and, generally, all movable property of the State which may be used for military operations.

    "All appliances, whether on land, at sea, or in the air, adapted for the transmission of news, or for the transport of persons or things, apart from cases governed by maritime law, depots of arms and generally, all kinds of war material may be seized, even though belonging to private persons, but they must be restored at the conclusion of peace, and indemnities paid for them." (Emphasis ours.)

    The second paragraph of article 53 above quoted was quoted by the trial court in support of its view that the Japanese Army was authorized under international law to seize the vessel in question. And we think that was correct. But we are clearly of the opinion that the trial court erred in holding that the Japanese Army could and did lawfully confiscate said vessel. Although the regulations quoted authorized the seizure of the vessel in question, they did not authorize its confiscation. On the contrary, it is expressly provided therein that the things seized "must be restored at the conclusion of peace and indemnities paid for them." It is clear, therefore, that the title to the vessel in question did not pass to the Japanese but remained in the owner, the plaintiff herein. In other words, said vessel did not become enemy property and was not such when the PCAU sold it to Vicente Asuncion. Hence said sale was not valid as against the plaintiff, and the defendant acquired no valid title to said vessel by virtue of his purchase from Vicente Asuncion.

    A question which was not passed upon by the trial court remains to be resolved, namely, the right of the defendant to be reimbursed by the plaintiff for necessary and useful expenditures on said vessel and the corresponding obligation of said defendant to account to the plaintiff for the earnings of the vessel during the pendency of this action.

    Upon the facts proven, we may concede that the defendant-appellee was a purchaser in good faith. But we hold that he ceased to be a possessor in good faith from the moment the plaintiff, as owner of the vessel, claimed it from the defendant judicially or extrajudicially. From that moment the defendant was not unaware that his possession was wrongful. (See art. 435, Civil Code; Ortis v. Fuentebella, 27 Phil., 537.)

    Article 451 of the old Civil Code provides that "fruits received by one in possession in good faith, before possession is legally interrupted, become his own." And article 453 says that "necessary expenditures shall be refunded to every possessor; but only the possessor in good faith may retain the thing until they are repaid to him. Useful expenditures shall be paid the possessor in good faith. . . ."cralaw virtua1aw library

    It follows that the defendant must account to the plaintiff for the net earnings of the vessel from the time the plaintiff claimed said vessel from him judicially or extrajudicially, and whatever necessary expenditures he may have made on said vessel as well as all useful expenditures made before the possession was legally interrupted, may be deducted from or set off against said earnings.

    Finding that the plaintiff is entitled to the vessel in question, we reverse the judgment appealed from and order the case remanded to the court of origin for further proceedings in accordance with this decision, with costs against the appellee.

    Moran, C.J., Paras, Pablo, Bengzon, Tuason, Montemayor, and Reyes, JJ., concur.

    G.R. No. L-2939   August 29, 1950 - PLACIDO NOCEDA v. MARCOS ESCOBAR<br /><br />087 Phil 204


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