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8/9/2019 LunETa Motor

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G.R. No. L-17061, Luneta Motor Company v. Dimagiba et al., 3 CR! ""#

Republi$ o% t&e '&ilippine(

)'R*M* C+)R

Manila

*N !NC

De$ember 30, 1 61

G.R. No. L-17061L)N* ! M+ +R C+M'!N/, petitioner,

v(.

!NG*L D M!G !, * !L., re(pon ent(.

2o(e !gbulo( %or petitioner.

M. Con$ep$ion %or re(pon ent(.

!) ! !NG*L+, 2.

ometime prior to May 7, 1 46, t&e Luneta Motor Company 5le (everal $a(e( int&e Court( o% ir(t n(tan$e o% Manila an Cavite again(t !ngel Dimagiba anNativi a Noriel $on$erning t&e pur$&a(e %rom (ai $ompany by Dimagiba o% a tru$t&e pri$e o% 8&i$& &e 8a( not able to pay a$$or ing to t&eir agreement. &e(e $a(e(

eventually 8ere (ettle ami$ably by virtue o% a $ompromi(e agreement entere intobet8een t&e $ompany an t&e t8o e%en ant( a( a re(ult o% 8&i$& Dimagiba (ignea promi((ory note on t&e a%ore(ai ate in %avor o% t&e $ompany %or t&e (um o%'16,196.19 8&i$& &e promi(e to pay in 1" mont&ly in(tallment(. o guarantee t&epayment o% (ai in ebte ne(( t8o $&attel mortgage( 8ere e:e$ute (eparately byDimagiba an Noriel 8&erein t&ey pla$e a( (e$urity t8o tru$ ( belonging to ea$&o% t&em. ub(e;uently, be$au(e o% (ome tire( an (pare part( boug&t on $re it byDimagiba %rom t&e (ame $ompany, &e e:e$ute t8o more promi((ory note(, one on


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2une 11, 1 46 in t&e (um o% '1,10".00 payable in # e;ual in(tallment(, an t&eot&er on 2uly 90, 1 46 %or '700.00 payable in 4 e;ual in(tallment(. e$au(e t&ea%ore(ai e;uipment 8a( u(e by Dimagiba in t&e tru$ boug&t by &im, t&e $&attelmortgage &e &a e:e$ute 8a( ma e e:ten(ive to t&e value o% (ai t8o promi((orynote(.

+n November 97, 1 46, ue to t&e %ailure o% Dimagiba to pay (everal in(tallment(t&at be$ame ue on t&e t&ree promi((ory note( e:e$ute by &im to $over t&e valueo% t&e tru$ an t&e e;uipment &e &a pur$&a(e , t&e Luneta Motor Company 5lea $omplaint be%ore t&e Court o% ir(t n(tan$e o% Manila again(t Dimagiba an Noriel%or replevin an %or re$overy o% t&e balan$e o% t&e latter to (ei=e t&emortgage tru$ ( an turn t&em over to plainti>, an , 5n ing t&i( prayermeritoriou(, t&e t8o tru$ ( 8ere or ere (ei=e an elivere to plainti> a%ter 5ling

on it( part t&e bon 5:e by t&e $ourt. Later, a (upplemental $omplaint 8a( 5le byt&e (ame $ompany again(t t&e (ame e%en ant( to re$over t&e (um o% '1,#44.61being t&e value o% $ertain part( %oun to be mi((ing in t&e tru$ o% Dimagiba.

n t&e meantime, a 8rit o% in?un$tion 8a( praye %or by Noriel in an attempt to%ore(tall t&e (ei=ure o% &er tru$ by t&e plainti> 8&i$& 8a( grante upon &er 5ling abon o% '7,400.00 8&i$& later 8a( re u$e to '1,600.00, but &aving %aile to put up(ai bon t&e replevin $ontinue an on May 10, 1 47, Noriel an 8a( a ?u i$ate to t&e (ame plainti> a(

t&e &ig&e(t bi er %or t&e (um o% '4,000.00.

!%ter trial, t&e $ourt a ;uo ren ere e$i(ion &ol ing t&at (in$e plainti> &a( (ei=et&e t8o tru$ ( an $&o(e to %ore$lo(e t&e mortgage( e:e$ute t&ereon pur(uant!rti$le to 1#"# o% t&e ne8 Civil Co e it $an no longer re$over t&e balan$e o% t&epur$&a(e pri$e again(t eit&er e%en ant( an , $on(e;uently, it a@rme t&e 8rit o%manual elivery o% t&e tru$ belonging to Dimagiba but i(mi((e t&e $omplaintagain(t Noriel, or ering Dimagiba to pay plainti> t&e (um o% '1,#44.61 repre(entingt&e value o% t&e part( %oun mi((ing in &i( tru$ , 8it& legal intere(t t&ereon %rom t&e

5ling o% t&e $omplaint, an t&e $o(t( o% a$tion. Ao8ever, 8&en e%en ant( $allet&e attention o% t&e $ourt a ;uo t&at 8&ile it or ere t&e i(mi((al o% t&e $omplaintagain(t Noriel an (et a(i e t&e 8rit o% manual elivery i((ue in relation t&ereto itoverloo e t&e latter to pay Noriel t&e (um o% '10,000.00 8it& legal intere(t t&ereon%rom t&e ate o% t&e 5ling o% t&e $ounter$laim, it &aving %oun t&at t&e return o% t&etru$ &a( be$ome legally impo((ible.


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Bit&in t&e perio pre($ribe to per%e$t an appeal, plainti> $au(e t&e tru$ o%Dimagiba to be (ol at publi$ au$tion at 8&i$& it boug&t t&e (ame %or ' ,000.00 a(t&e &ig&e(t bi er. !n 8&en t&e $a(e 8a( elevate to t&e Court o% !ppeal(, t&e

latter a@rme in toto t&e e$i(ion o% $ourt a ;uo. &e $a(e i( no8 be%ore u( on apetition %or revie8 5le by t&e plainti>.

t appear( t&at !ngel Dimagiba boug&t %rom t&e Luneta Motor Company a tru$ %ora pri$e 8&i$& 8a( $ompromi(e at '16,196.19 payable in 1" mont&ly in(tallment(to guarantee 8&i$& &e e:e$ute a $&attel mortgage on t&e (ame tru$ on May 7,1 46, an a( a %urt&er (e$urity t&ereto on Nativi a Noriel al(o e:e$ute on t&e(ame ate a $&attel mortgage on anot&er tru$ 8&i$& belonge to t&e latter. t al(oappear( t&at 8&en Dimagiba %aile to pay (everal in(tallment( a( &e agree in t&epromi((ory note &e e:e$ute to $over t&e pri$e o% t&e tru$ &e pur$&a(e , t&e$ompany in(titute an a$tion not only to re$over t&e balan$e o% &i( obligation but to(e$ure t&e (ei=ure o% t&e t8o tru$ ( mortgage 8it& a prayer t&at t&e pro$ee ( t&atmay be reali=e a%ter t&e (ale o% (ai tru$ ( be applie to t&e payment o% t&e

?u gment t&at may be ren ere in t&e $a(e. e$au(e o% t&e vague nature o% t&eallegation( $ontaine in t&e $omplaint, a( 8ell a( in it( prayer, t&e $ourt a ;uo, a(8ell a( t&e Court o% !ppeal(, $on(i ere t&e a$tion ta en a( one o% bot& replevinan %ore$lo(ure o% mortgage.

n e>e$t, a%ter t&e 5ling o% t&e $omplaint, t&e 5r(t (tep ta en by plainti> 8a( to a(%or t&e (ei=ure o% t&e t8o tru$ ( (ub?e$t o% replevin, 8&i$& 8a( grante , t&e (&eri>&aving ta en po((e((ion t&ereo% an &aving turne t&em over to t&e plainti>.

&erea%ter, 8&ile t&e main $a(e 8a( (till pen ing trial on t&e merit(, plainti>(e$ure %rom t&e (&eri> t&e (ale o% t&e tru$ o% Noriel at publi$ au$tion 8&i$&plainti> it(el% boug&t a( t&e &ig&e(t bi er %or t&e (um o% '4,000.00. !n$on(i ering t&at plainti> $oul not %ore$lo(e t&e mortgage o% Noriel &a( no legal vali ity $on(i ering t&atplainti> $&o(e at t&e (ame time to %ore$lo(e t&e $&attel mortgage e:e$ute byDimagiba to (e$ure t&e payment o% t&e (ame obligation, an (o it i(mi((e t&e$a(e in(o%ar a( Noriel i( $on$erne , 8&ile it or ere t&e payment to &er o% it( value8&i$& 8a( 5:e at '10,000.00. &u(, in rea$&ing t&e $on$lu(ion t&at t&e ($&eme o%t&e $re itor $annot be (u(taine be$au(e it 8oul be a agrant violation o% !rti$le1#"# o% t&e Civil Co e, t&e $ourt a ;uo (ai


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B&ile it i( true t&at *:&ibit # on it( %a$e appear( to be a $ompromi(e, t&ere i( no;ue(tion t&at by virtue o% (ai $ompromi(e, t&e tru$ o% !ngel Dimagiba 8a( on$emore (ol to &im on t&e in(tallment plan by Luneta Motor Co. an !ngel 8a( ma eto a((ume t&e balan$e o% t&e a$$ount in$lu ing part( an tire( all on $re itE t&eCourt oe( not (ee t&at t&i( being t&e $a(e, t&e $a(e $an be ta en out o% t&e

operation o% !rti$le 1#"# o% t&e Ne8 Civil Co eE t&e la8 i( ;uite emp&ati$ 8&en ite$lare( t&at any agreement to t&e $ontrary 8oul be null an voi E an t&e

evi en$e &aving e(tabli(&e t&e %a$t t&at t&e $on(i eration o% t&e t8o promi((orynote(, *:&ibit( G to 8ere $a(ing( an inner tube( al(o a( t&e Courtun er(tan ( in$orporate into t&e tru$ an $overe a( plainti> it(el% allege( inparagrap& 3 o% it( $omplaint, in t&e $&attel mortgage, *:&ibit C , t&e only e>e$t(&oul be a( t&e Court un er(tan ( !rt. 1#"# t&at 8&en plainti> $&o(e to %ore$lo(et&e $&attel mortgage, it (ubmitte it(el% to t&e $on(e;uen$e( o% t&e la8 8it& t&ere(ult t&at &aving (ei=e t&e tru$ o% !ngel Dimagiba, it $oul no longer (e$ure any

?u gment %or t&e balan$e o% t&e a$$ount o% !ngel an %or t&e rea(on t&at Nativi a8a( only a mortgagor in t&e $&attel mortgage to guarantee t&e %ul5llment o% t&e5r(t promi((ory note, an &er liability being only (e$on ary, neit&er (&oul (&e bere;uire anymore to pay t&e balan$e ue unto plainti> %rom !ngel Dimagiba, (ot&at t&e re(ult 8oul be t&at 8it& re(pe$t to t&e money liability praye %or in t&e$omplaint, t&e (ame 8ill &ave to be a i(mi((al..

o t&e above ruling t&e Court o% !ppeal( &a( %ully agree .

Be o not 5n any error in t&i( ruling o% t&e $ourt a ;uo 8&i$& 8a( $on$urre in byt&e Court o% !ppeal( %or t&e (ame i( in line 8it& t&e letter an (pirit o% !rti$le 1#"#o% t&e ne8 Civil Co e. n ee , (ai arti$le pre($ribe( t&ree reme ie( 8&i$& a ven ormay pur(ue in a $ontra$t o% (ale o% per(onal property t&e pri$e o% 8&i$& i( payablein in(tallment(, to 8it F1 e:a$t %ul5llment o% t&e obligationE F9 $an$el t&e (aleE anF3 %ore$lo(e t&e mortgage on t&e t&ing (ol . % &e $&oo(e( t&e t&ir reme y, t&earti$le provi e( t&at &e (&all &ave no %urt&er a$tion again(t t&e pur$&a(er to re$overany unpai balan$e o% t&e pur$&a(e pri$e. t even a ( t&at any agreement to t&e$ontrary (&all be voi .

ut in t&e in(tant $a(e t&e ven or 8a( not $ontent in $&oo(ing any o% t&e t&reereme ie(, but $&o(e to avail it(el% o% t&e 5r(t an t&ir reme ie(. More t&an t&at,plainti> even 8ent to t&e e:tent o% (uing %or replevin, in ot&er 8or (, it 5le ana$tion $ontaining t&ree reme ie( to $olle$t t&e pur$&a(e pri$e, to (ei=e t&eproperty pur$&a(e , an to %ore$lo(e t&e mortgage e:e$ute t&ereon. 'lainti> even8ent to t&e e:tent o% (elling 5r(t t&e property o% Noriel, 8&o i( not t&e ven ee, outo% $ourt, an a%ter oing (o, it a( e t&e $ourt %or ?u gment in t&e balan$e. u$& a


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($&eme i( not only irregular but i( a agrant $ir$umvention o% t&e pro&ibition o% t&ela8.

&e i((ue( po(e be%ore u( by petitioner $annot no8 be pa((e upon not onlybe$au(e 8e $on(i er t&em unne$e((ary but be$au(e t&ey 8ere not rai(e eit&erbe%ore t&e Court o% !ppeal( or be%ore t&e $ourt a ;uo.

BA*R* +R*, t&e e$i(ion appeale %rom i( a@rme , 8it& $o(t( again(t petitioner.

eng=on, C.2., 'a illa, Con$ep$ion, arrera, 'are e( an De Leon, 22., $on$ur.

Labra or, 2., re(erve( &i( vote.

Reye(, 2. .L., 2., $on$ur( in t&e re(ult.

Di=on, 2., too no part.

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