Professional Documents
Culture Documents
FACTS:
Loan of P3M paid. Obtained another loan in 1981 P2.7M and was
also paid.
Ratio:
Chattel mortgage can cover only obligations existing at the time mortgage is
constituted [Act 1508 Chattel Mortgage Law]
FACTS:
Wearever Textile Mills, Inc. executed a chattel mortgage
contract in favor of Makati Leasing and Finance Corporation
covering certain raw materials and machinery.
Upon default, Makati Leasing fi led a petition for judicial
foreclosure of the properties mortgaged. Acting on Makati
Leasings application for replevin, the lower court issued a
writ of seizure.
Pursuant thereto, the sheriff enforcing the seizure order
seized the machinery subject matter of the mortgage. In a
petition for certiorari and prohibition, the Court of Appeals
ordered the return of the machinery on the ground that the
same can-not be the subject of replevin because it is a real
property pursuant to Article415 of the new Civil Code, the
same being attached to the ground by means of bolts and
the only way to remove it from Wearever textiles plant
would be to drill out or destroy the concrete floor.
When the motion for reconsideration of Makati Leasing was
denied by the Court of Appeals, Makati Leasing elevated
the matter to the Supreme Court.
Other notes:
Damages: Acme cannot claim moral damages. Artifical person. No feelings
LegProf: Lawyers have to observe and maintain the respect due to the courts
of justice and judicial officers. Lawyer for Acme admonished by the court for
calling magistrates of CA incompetent and dishonest.
DY v CA
FACTS:
Wilfredo Dy bought a truck and tractor from Libra Finance
Corporation. Both truck and tractor was also mortgage to Libra as
security for a loan and as such, they took possession of it. Brother
of Wilfredo, Perfecto Dy and sister Carol Dy-Seno requested Libra
that they be allowed to buy the property and assume the mortgage
debt. Libra agreed to the request.
The respondents claim that at the time of the execution of the deed
of sale, no constructive delivery was effected since the
consummation of the sale depended upon the clearance and
encashment of the check which was issued in payment of the
subject tractor
ISSUE #1
WON the William Dy is still the owner of the tractor when it was
obtained through the writ of execution.
HELD:
The tractor was not anymore in possession of William Dy when it
was obtained by the sheriff because he already sold it to his
brother.
William Dy has the right to sell his property even though it was
mortgage because in a mortgage, the mortgagor doesnt part with
the ownership over the property. He is allowed to sell the property
as long as there is consent from the mortgagee such as in this
case. But even if there is no consent given, the sale would still be
valid without prejudice to the criminal action against the mortgagor.
ISSUE #2
WON there was a consummated sale between Petitioner and
LIBRA?
HELD: NO.