CREDIT TRANSACTION CASE DIGEST/ COTONER-ZACARIAS VS. REVILLA, 740 SCRA 51

COTONER-ZACARIAS VS. REVILLA,

740 SCRA 51

TOPIC/DOCTRINE

Article 2132 of the Civil Code provides that “[b]y the contract of antichresis the creditor acquires the right to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit.”

Antichresis requires delivery of the property to the antichretic creditor, but the latter cannot ordinarily acquire this immovable property in his or her possession by prescription. Similar to the prohibition against pactum commissorium since creditors cannot “appropriate the things given by way of pledge or mortgage, or dispose of them,” an antichretic creditor also cannot appropriate the real property in his or her favor upon the nonpayment of the debt. Antichresis also requires that the amount of the principal and the interest be in writing for the contract to be valid.

FACTS

Paz Castillo – Revilla borrowed money from Amada Cotoner – Zacarias. By way of security, the parties verbally agreed that Amada would take physical possession of the property, cultivate it, then use the earnings from the cultivation to pay the loan and realty taxes. Upon full payment of the loan, Amada would return the property to the Revilla spouses. Amada sold the property to the spouses Adolfo and Elvira Casorla by Deed of Absolute Sale Unregistered Land. In turn, the Casorla spouses executed a deed of absolute sale in favor of the spouses Rodolfo and Yolanda Sun

Alfredo Revilla returned from Saudi Arabia. He asked Amada why she had not returned their tax declaration considering their full payment of the loan. He then discovered that the property’s tax declaration was already in the name of the Sun spouses.The Revilla spouses filed a complaint before the Regional Trial Court for the annulment of sales and transfers of title and reconveyance of the property with damages against Amada, the Casorla spouses, the Sun spouses, and the Provincial Assessor of Cavite.The Regional Trial Court found the Kasulatan ng Bilihan ng Lupa to be a fictitious document, and ruled in favor of the Revilla spouses. The Court of Appeals dismissed the appeal of Amada, and partially granted the appeal of the Sun spouses.

ISSUE

Whether or not the Contract of Antichresis executed between Amada & Paz Revilla is void.

RULING

Yes.

The court held that Antichresis requires delivery of the property to the antichretic creditor, but the latter cannot ordinarily acquire this immovable property in his or her possession by prescription. Similar to the prohibition against pactum commissorium since creditors cannot “appropriate the things given by way of pledge or mortgage, or dispose of them,” an antichretic creditor also cannot appropriate the real property in his or her favor upon the nonpayment of the debt. Antichresis also requires that the amount of the principal and the interest be in writing for the contract to be valid.

Therefore, the contract of antichresis is void. The Court affirmed the lower court’s order of reinstatement and reconveyance of the property in favor of respondents Revilla Spouses.


Popular posts from this blog

CRIMINAL LAW II CASE DIGEST/ BACLAYON V. MUTIA, 129 SCRA 148

BACLAYON V. MUTIA, 129 SCRA 148 TOPIC/DOCTRINE Conditions should be interpreted with flexibility in their application and each case should be judged on its own merits—on the basis of the problems, needs and capacity of the probationer. The very liberality of the probation should not be made a tool by trial courts to stipulate instead unrealistic terms. FACTS Petitioner, Florentina L. Baclayon was convicted of the crime of Serious Oral Defamation for having quarreled with and uttered insulting and defamatory words against Remedios Estillore, principal of the Plaridel Central School. The CA/IAC affirmed her conviction and increased the penalty imposed by respondent judge and sentenced her to 1 year 8 months 21 days of arresto mayor in its maximum period to 2 years and 4 months of prision correccional in its minimum period. The sentence was promulgated on September 9, 1981, and on the same date Baclayon applied for probation with respondent judge who referred the application t...
MUST READ

CONSTITUTIONAL LAW I CASE DIGEST | THE DIOCESE OF BACOLOD V. COMELEC G.R. No. 205728, January 21, 2015

THE DIOCESE OF BACOLOD V. COMELEC G.R. No. 205728, January 21, 2015 TOPIC/DOCTRINE Free speech and other intellectual freedoms as "highly ranked in our scheme of constitutional values." These rights enjoy precedence and primacy. FACTS On February 21, 2013, petitioners posted two (2) tarpaulins were posted within a private compound housing the San Sebastian Cathedral of Bacolod (on the front walls of the cathedral within public view ). Each tarpaulin was approximately six feet (6') by ten feet (10') in size. The first tarpaulin contains the message "IBASURA RH Law" referring to the Reproductive Health Law of 2012 or Republic Act No. 10354.  The second tarpaulin contains the heading "Conscience Vote" and lists candidates as either "(Anti-RH) Team Buhay" with a check mark, or "(Pro-RH) Team Patay" with an "X" mark .  Those who voted for the passing of the RH law were classified by petitioners as comprising "Team Pata...
MUST READ

CREDIT TRANSACTIONS CASE DIGEST/ BPI FAMILY BANK VS. FRANCO/ G. R. NO. 123498/ 23 NOVEMBER 2007

CREDIT TRANSACTIONS CASE DIGEST BPI FAMILY BANK VS. FRANCO, G. R. NO. 123498, 23 NOVEMBER 2007   TOPIC/DOCTRINE The quality of being fungible depends upon the possibility of the property, because of its nature or the will of the parties, being substituted by others of the same kind, not having a distinct individuality. FACTS Franco opened three accounts, namely, a current,4 savings,5 and time deposit,6 with BPI-FB. The current and savings accounts were respectively funded with an initial deposit of P500,000.00 each, while the time deposit account had P1,000,000.00 with a maturity date of August 31, 1990. The total amount of P2,000,000.00 used to open these accounts is traceable to a check issued by Te-vesteco allegedly in consideration of Franco’s introduction of Eladio Teves, who was looking for a conduit bank to facilitate Tevesteco’s business transactions, to Jaime Sebastian, who was then BPI-FB SFDM’s Branch Manager. In turn, the funding for the P2,000,000.00 che...
MUST READ

REMEDIAL LAW | Riviera Golf Club v. CCA G.R. No. 173783, June 17 2015

Image
Riviera Golf Club v. CCA  G.R. No. 173783, June 17 2015 FACTS Riviera Golf Club entered into a Management Agreement with CCA Holdings to manage and operate the golf club. Riviera Golf defaulted on payments and terminated the agreement prematurely. CCA Holdings filed two separate lawsuits against Riviera Golf: Civil Case 01-611 for unpaid fees and reimbursement claims, Civil Case 03-399 for damages due to premature termination of the agreement. Riviera Golf argued that the second case was barred by res judicata and splitting a single cause of action. Whether the second complaint was barred by res judicata and splitting a single cause of action. RULING Yes. Res judicata requires the concurrence of the following requisites: (1) the former judgment must be final; (2) it must have been rendered by a court having jurisdiction of the subject matter and the parties; (3) it must be a judgment on the merits; and (4) there must be, between the first and second actions (a) identity of par...
MUST READ

CREDIT TRANSACTION CASE DIGEST/ QUINTOS VS. BECK/ 69 PHIL. 108 (1939)

CREDIT TRANSACTION CASE DIGEST QUINTOS VS. BECK 69 PHIL. 108 (1939) TOPIC/DOCTRINE The contract entered into between the parties is one of commodatum, because under it the plaintiff gratuitously granted the use of the furniture to the defendant, reserving for herself the ownership thereof; by this contract the defendant bound himself to return the furniture to the plaintiff, upon the latter's demand. FACTS The plaintiff brought this action to compel the defendant to return to her certain furniture which she lent him for his use. Defendant is a tenant of defendant. Defendant wrote another letter to the plaintiff informing her that he could not give up the three gas heaters and the four electric lamps because he would use them until the 15th of the same month when the lease is due to expire. The plaintiff refused to get the furniture in view of the fact that the defendant had declined to make delivery of all of them. On November 15th, before vacating the house, the defend...
MUST READ

CREDIT TRANSACTION CASE DIGEST/ MINA VS. PASCUAL/ 25 PHIL. 540 (1923)

CREDIT TRANSACTION CASE DIGEST MINA VS. PASCUAL 25 PHIL. 540 (1923) TOPIC/DOCTRINE Commodatum is essentially gratuitous. ADDITIONAL NOTE A sale of land belonging to another, on which a building of the vendors is located, is null and void, for the vendor cannot sell or transfer property that does not belong to him. Mina vs. Pascual., as prescribed by article 361, the owner of the land on which a building has been erected by another in good faith has the option either to appropriate and pay for the building, under articles 453 and 454, or to oblige the builder to purchase the land. FACTS Andres Fontanilla, with the consent of his brother Francisco, erected a warehouse on a part of the lot belonging to Francisco, embracing 14 meters of its frontage by 11 meters of its depth. Francisco Fontanilla did not fix any definite period of the time during which Andres Fontanilla could have the use of the lot whereon the latter was to erect a stone warehouse of considerable value, and ...
MUST READ

LAW ON PROPERTY | ACOSTA V. OCHOA, ET AL., G.R. NO. 211559; G.R. NO. 215634, OCTOBER 15, 2019

Image
ACOSTA V. OCHOA, ET AL., G.R. NO. 211559; G.R. NO. 215634, OCTOBER 15, 2019.   TOPIC/DOCTRINE Ownership and possession of firearms is not a property right, but a mere privilege. Should the State find that bearing arms would be contrary to its legitimate interests, it can revoke the license without violating the due process clause.    FACTS This is a consolidated petition assailing the constitutionality of certain provisions of Republic Act  No. 10591, or the Comprehensive Firearms and Ammunition Regulation Act, and their corresponding  provisions in the 2013 Implementing Rules and Regulations for allegedly violating petitioners right to  bear arms, right to property, and right to privacy.  Yes, Section 9 of Republic Act No. 10591 which mandates applicants for Types 3 to 5 licenses to  comply with "inspection... requirements." The law and the corresponding provision in the  Implementing Rules. Initially the law is silent and ha...
MUST READ

ALTERNATIVE DISPUTE RESOLUTION | HYGIENIC PACKAGING CORPORATION VS. NUTRI-ASIA, INC ., G.R. NO. 201302, JANUARY 23, 2019

Image
HYGIENIC PACKAGING CORPORATION VS. NUTRI-ASIA, INC ., G.R. NO. 201302, JANUARY 23, 2019   FACTS Hygienic Packaging Corporation (Hygienic) is a domestic corporation that manufactures and sells packaging materials such as plastic bottles. Nutri-Asia, also a domestic corporation, manufactures, and distributes food products such as banana-based and tomato-based condiments, vinegar, soy sauce, and other sauces.  From 1998 to 2009, Hygienic supplied Nutri-Asia with plastic bottles for its banana catsup products. Every transaction was covered by a Purchase Order issued by Nutri-Asia. The Purchase Order contains terms and conditions, among which is an Arbitration clause which provides: “ 13. Arbitration of all disputes arising in connection with this Contract shall be referred to an Arbitration Committee, in accordance with the Philippine Arbitration Law, composed of three members: xxx  For every purchase of plastic containers by Nutri-Asia, Hygienic issues Sales Invoices t...
MUST READ

LEGAL ETHICS | MAURICIO C. ULEP VS. THE LEGAL CLINIC, INC Bar Matter No. 553. June 17, 1993

Image
MAURICIO C. ULEP VS. THE LEGAL CLINIC, INC Bar Matter No. 553. June 17, 1993   TOPIC/DOCTRINES/WORDS AND PHRASES 1.     Words and Phrases; Meaning of “Practice of Law”— Practice of law, as defined by the Supreme Court, means any activity, in or out of court, which requires the application of law, legal procedures, knowledge, training and experience. To engage in the practice of law is to perform those acts which are characteristic of the profession. Generally, to practice law is to give advice or render any kind of service that involves legal knowledge or skill. The practice of law is not limited to the conduct of cases in court. It includes legal advice and counsel, and the preparation of legal instruments and contracts by which legal rights are secured, although such matter may or may not be pending in a court.   2.     Same; Instances when a person considered in a Practice of Law — When a person participates in a trial and advertise...
MUST READ

CRIMINAL LAW II CASE DIGEST/ BALA V. MARTINEZ, 181 SCRA 459

BALA V. MARTINEZ, 181 SCRA 459 TOPIC/DOCTRINE Expiration of probation period alone does not automatically terminate probation, a final order of discharge from the court is required. An order revoking probation or modifying the terms thereof is unappealable. Probationer’s change of residence did not divest the RTC of Manila of jurisdiction over the probation case. FACTS Bala has been indicted for removing and substituting the picture of Maria Diazen which had been attached to her USA passport, with that of Florencia Notarte, in effect falsifying a genuine public or official document. The RTC adjudged Bala guilty of the crime of falsification of a public document. Bala appealed the said conviction but the CA affirmed in toto the judgment of the trial court. Bala then applied for and was granted probation by Judge Martinez. He was placed in probation under a period of 1 year, subject to the terms and conditions enumerated therein. By its terms, it should have expired on August...
MUST READ