a4.bh berkenkotter v. cu unjieng

7/24/2019 A4.BH Berkenkotter v. Cu Unjieng

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Republic of the Philippines

SUPREME COURT

Manila

EN BANC

G.R. No. L-41643 July 31, 1935

B.H. BERKENKOTTER,plainti-appellant,

vs.

CU UNJIENG E HIJOS, EK TONG LIN !IRE "N# M"RINE INSUR"NCE

COMP"N, M"B"L"C"T SUG"R COMP"N $%& THE PRO'INCE SHERI!! O!

P"MP"NG",defendants-appellees.

Briones and Martinez for appellant.

Araneta, Zaragoza and Araneta for appellees Cu Unjieng e Hijos.

No appearance for the other appellees.

'ILL"-RE"L, J.:

This is an appeal taken b the plainti, B.!. Be"kenkotte", f"o# the $ud%#ent of

the Cou"t of &i"st 'nstance of Manila, dis#issin% said plainti(s co#plaint a%ainst Cu

)n$ien%s e !i$os et al., *ith costs.

'n suppo"t of his appeal, the appellant assi%ns si+ alle%ed e""o"s as co##itted b

the t"ial cou"t in its decision in uestion *hich *ill be discussed in the cou"se of this

decision.

The "st uestion to be decided in this appeal, *hich is "aised in the "st

assi%n#ent of alle%ed e""o", is *hethe" o" not the lo*e" cou"t e""ed in decla"in% that the

additional #achine" and euip#ent, as i#p"ove#ent inco"po"ated *ith the cent"al a"e

sub$ect to the #o"t%a%e deed e+ecuted in favo" of the defendants Cu )n$ien% e !i$os.

't is ad#itted b the pa"ties that on Ap"il /, 01/, the Mabalacat 2u%a" Co., 'nc.,

o*ne" of the su%a" cent"al situated in Mabalacat, Pa#pan%a, obtained f"o# the

defendants, Cu )n$ien% e !i$os, a loan secu"ed b a "st #o"t%a%e constituted on t*o

pa"cels and land 3*ith all its buildin%s, i#p"ove#ents, su%a"-cane #ill, steel "ail*a,

telephone line, appa"atus, utensils and *hateve" fo"#s pa"t o" is necessa" co#ple#ent

of said su%a"-cane #ill, steel "ail*a, telephone line, no* e+istin% o" that #a in the

futu"e e+ist is said lots.3

4n 4ctobe" 5, 01/, sho"tl afte" said #o"t%a%e had been constituted, the

Mabalacat 2u%a" Co., 'nc., decided to inc"ease the capacit of its su%a" cent"al b buin%

additional #achine" and euip#ent, so that instead of #illin% 056 tons dail, it could

p"oduce 56. The esti#ated cost of said additional #achine" and euip#ent *as

app"o+i#atel P066,666. 'n o"de" to ca"" out this plan, B.A. 7"een, p"esident of said

co"po"ation, p"oposed to the plainti, B.!. Be"kenkotte", to advance the necessa"

a#ount fo" the pu"chase of said #achine" and euip#ent, p"o#isin% to "ei#bu"se hi#as soon as he could obtain an additional loan f"o# the #o"t%a%ees, the he"ein defendants

Cu )n$ien% e !i$os. !avin% a%"eed to said p"oposition #ade in a lette" dated 4ctobe" 5,

01/ 8E+hibit E9, B.!. Be"kenkotte", on 4ctobe" 1th of the sa#e ea", delive"ed the su#

of P0,:06 to B.A. 7"een, p"esident of the Mabalacat 2u%a" Co., 'nc., the total a#ount

supplied b hi# to said B.A. 7"een havin% been P5,:56. &u"the"#o"e, B.!. Be"kenkotte"

had a c"edit of P,666 a%ainst said co"po"ation fo" unpaid sala". ;ith the loan of

BH Berkenkotter vs. Cu Unjieng (61 Phil. 663) Page 1source: www.lawphil.net


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P5,:56 and said c"edit of P,666, the Mabalacat 2u%a" Co., 'nc., pu"chased the

additional #achine" and euip#ent no* in liti%ation.

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such p"esident, could not have oe"ed the# to the plainti as secu"it fo" the pa#ent of

his c"edit.

A"ticle >>H, pa"a%"aph 5, of the Civil Code %ives the cha"acte" of "eal p"ope"t to

3#achine", liuid containe"s, inst"u#ents o" i#ple#ents intended b the o*ne" of an

buildin% o" land fo" use in connection *ith an indust" o" t"ade bein% ca""ied on the"einand *hich a"e e+p"essl adapted to #eet the "eui"e#ents of such t"ade o" indust".

'f the installation of the #achine" and euip#ent in uestion in the cent"al of the

Mabalacat 2u%a" Co., 'nc., in lieu of the othe" of less capacit e+istin% the"ein, fo" its

su%a" indust", conve"ted the# into "eal p"ope"t b "eason of thei" pu"pose, it cannot be

said that thei" inco"po"ation the"e*ith *as not pe"#anent in cha"acte" because, as

essential and p"incipal ele#ents of a su%a" cent"al, *ithout the# the su%a" cent"al *ould

be unable to function o" ca"" on the indust"ial pu"pose fo" *hich it *as established.

'nas#uch as the cent"al is pe"#anent in cha"acte", the necessa" #achine" and

euip#ent installed fo" ca""in% on the su%a" indust" fo" *hich it has been established

#ust necessa"il be pe"#anent.

&u"the"#o"e, the fact that B.A. 7"een bound hi#self to the plainti B.!.

Be"kenkotte" to hold said #achine" and euip#ent as secu"it fo" the pa#ent of the

latte"(s c"edit and to "ef"ain f"o# #o"t%a%in% o" othe"*ise encu#be"in% the# until

Be"kenkotte" has been full "ei#bu"sed the"efo", is not inco#patible *ith the pe"#anent

cha"acte" of the inco"po"ation of said #achine" and euip#ent *ith the su%a" cent"al of

the Mabalacat 2u%a" Co., 'nc., as nothin% could p"event B.A. 7"een f"o# %ivin% the# as

secu"it at least unde" a second #o"t%a%e.

As to the alle%ed sale of said #achine" and euip#ent to the plainti andappellant afte" the had been pe"#anentl inco"po"ated *ith su%a" cent"al of the

Mabalacat 2u%a" Co., 'nc., and *hile the #o"t%a%e constituted on said su%a" cent"al to

Cu )n$ien% e !i$os "e#ained in fo"ce, onl the "i%ht of "ede#ption of the vendo"

Mabalacat 2u%a" Co., 'nc., in the su%a" cent"al *ith *hich said #achine" and euip#ent

had been inco"po"ated, *as t"ansfe""ed the"eb, sub$ect to the "i%ht of the defendants Cu

)n$ien% e !i$os unde" the "st #o"t%a%e.

&o" the fo"e%oin% conside"ations, *e a"e of the opinion and so hold? 809 That the

installation of a #achine" and euip#ent in a #o"t%a%ed su%a" cent"al, in lieu of

anothe" of less capacit, fo" the pu"pose of ca""in% out the indust"ial functions of the

latte" and inc"easin% p"oduction, constitutes a pe"#anent i#p"ove#ent on said su%a"

cent"al and sub$ects said #achine" and euip#ent to the #o"t%a%e constituted the"eon

8a"ticle 0=::, Civil Code9 89 that the fact that the pu"chase" of the ne* #achine" and

euip#ent has bound hi#self to the pe"son supplin% hi# the pu"chase #one to hold

the# as secu"it fo" the pa#ent of the latte"(s c"edit, and to "ef"ain f"o# #o"t%a%in% o"

othe"*ise encu#be"in% the# does not alte" the pe"#anent cha"acte" of the inco"po"ation

of said #achine" and euip#ent *ith the cent"al and 8>9 that the sale of the #achine"

and euip#ent in uestion b the pu"chase" *ho *as supplied the pu"chase #one, as a

loan, to the pe"son *ho supplied the #one, afte" the inco"po"ation the"eof *ith the

#o"t%a%ed su%a" cent"al, does not vest the c"edito" *ith o*ne"ship of said #achine"

and euip#ent but si#pl *ith the "i%ht of "ede#ption.

;he"efo"e, ndin% no e""o" in the appealed $ud%#ent, it is ai"#ed in all its pa"ts,

*ith costs to the appellant. 2o o"de"ed.

Malcol!, '!perial, Butte, and #oddard, ))., concur.



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a4.bh berkenkotter v. cu unjieng

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