RECENT JURISPRUDENCE IN CIVIL LAW (As of 2011)
Compiled by: ATTY. MARIA LULU G. REYES
I. PERSONS AN FAMILY RELATIONS EFFECTS OF LAWS Laws; e!oa"!i#e appli"a!io$. A pe%sal o& RA '()* s+ows !+a! $o!+i$, i$deed !+eei$ a%!+oi-es i!s e!oa"!i#e appli"a!io$. I$ &a"! i!s e&&e"!i#i!y "la%se i$di"a!es a "lea le,isla!i#e i$!e$! !o !+e "o$!ay: /Se"!io$ *0. E&&e"!i#i!y Cla%se. 1 T+is A"! s+all !a2e e&&e"! &i&!ee$ 3456 days &ollowi$, !+e "omple!io$ o& i!s p%bli"a!io$ i$ !+e O&&i"ial Ga-e!!e o i$ !wo 3*6 $ewspapes o& ,e$eal "i"%la!io$.7 S!a!%!es ae pospe"!i#e a$d $o! e!oa"!i#e i$ !+ei opea!io$ !+ey bei$, !+e &om%la!io$ o& %les &o !+e &%!%e $o! !+e pas!. 8e$"e !+e le,al ma9im le9 de &%!%o %de9 de pae!ei!o !+e law po#ides &o !+e &%!%e !+e %d,e &o !+e pas! w+i"+ is a!i"%la!ed i$ A!i"le < o& !+e Ci#il Code: /Laws s+all +a#e $o e!oa"!i#e e&&e"! %$less !+e "o$!ay is po#ided.7 T+e easo$ &o !+e %le is !+e !e$de$"y o& e!oa"!i#e le,isla!io$ !o be %$%s! a$d oppessi#e o$ a""o%$! o& i!s liabili!y !o %$se!!le #es!ed i,+!s o dis!%b !+e le,al e&&e"! o& pio !a$sa"!io$s. In Re: Petition for Assistance in the Liquidation of Intercity Savings and Loan Bank, Inc., Philippine eposit Insurance !orporation vs. Stockholders of Intercity Savings and Loan Bank, Inc., ".R. #o. $%$&&', ece()er $*, +-. 8UMA= RELATIO=S >eso$s; +%ma$ ela!io$s. Fimly es!ablis+ed i$ o% "i#il law is !+e do"!i$e !+a!: /E#ey peso$ m%s! i$ !+e e9e"ise o& +is i,+!s a$d i$ !+e pe&oma$"e o& +is d%!ies a"! wi!+ %s!i"e ,i#e e#eyo$e +is d%e a$d obse#e +o$es!y a$d ,ood &ai!+.7 W+e$ a i,+! is e9e"ised i$ a ma$$e !+a! does $o! "o$&om wi!+ s%"+ $oms a$d es%l!s i$ dama,es !o a$o!+e a le,al wo$, is !+eeby "ommi!!ed &o w+i"+ !+e wo$, doe m%s! be +eld espo$sible. Similaly a$y peso$ w+o will&%lly "a%ses loss o i$%y !o a$o!+e i$ a ma$$e !+a! is "o$!ay !o moals ,ood "%s!oms o p%bli" poli"y s+all "ompe$sa!e !+e la!!e &o !+e dama,es "a%sed. I! is pa!e$! i$ !+is "ase !+a! pe!i!io$es? alle,ed a"!s &all s+o! o& !+ese es!ablis+ed "i#il law s!a$dads. Patronica Ravina and ilfredo Ravina vs. /ary Ann P. 0illa A)rille, for )ehalf of Ingrid 1Lyn P. 0illa A)rille, et al., ".R. #o. $'2%, 3cto)er $', +-.
@IORCE >.@. =o. 4)0(; M%slim peso$al laws. I& bo!+ pa!ies ae M%slims !+ee is a pes%mp!io$ !+a! !+e M%slim Code o M%slim law is "omplied wi!+. I& !o,e!+e wi!+ i! o i$ addi!io$ !o i! !+e maia,e is li2ewise solem$i-ed i$ a""oda$"e wi!+ !+e Ci#il Code o& !+e >+ilippi$es i$ a soB"alled "ombi$ed M%slimBCi#il maia,e i!es w+i"+e#e "omes &is! is !+e #alida!i$, i!e a$d !+e se"o$d i!e is meely "eemo$ial o$e. %! i$ !+is "ase as lo$, as bo!+ pa!ies ae M%slims !+is M%slim Code will apply. I$ e&&e"! !wo si!%a!io$s will aise i$ !+e appli"a!io$ o& !+is M%slim Code o M%slim law !+a! is w+e$ bo!+ pa!ies ae M%slims a$d w+e$ !+e male pa!y is a M%slim a$d !+e maia,e is solem$i-ed i$ a""oda$"e wi!+ M%slim Code o M%slim law. A !+id si!%a!io$ o""%Ds w+e$ !+e Ci#il Code o& !+e >+ilippi$es will ,o#e$ !+e maia,e a$d di#o"e o& !+e pa!ies i& !+e male pa!y
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I! s!a$ds !o easo$ !+ee&oe !+a! amoa$os? di#o"e &om @e G%-ma$ as "o$&imed by a$ 4stad5 a$d %d,e ai$%l o& !+e S+ai?a Ci"%i! Co%! a$d a!!es!ed !o by %d,e Usma$ was #alid a$d !+%s e$!i!led +e !o emay >a"as%m i$ 4'0'. Co$seH%e$!ly !+e RTC a$"+ Ili,a$ Ci!y is wi!+o%! %isdi"!io$ !o !y amoa$os &o !+e "ime o& i,amy. Atty. /arietta . 6a(oranos v. People of the Philippines and Sa(son R. Pacasu(, Sr.7Atty. /arietta . 6a(oranos v. Sa(son R. Pacasu(, Sr.7Sa(son R. Pacasu(, Sr. v. Atty. /arietta . 6a(oranos, G.R. =o. 4'(')*JG.R. =o. 4'(')0 a$d G.R. =o. 4'<)K5. %$e 4 *)44 Family ela!io$s; impa"! o& &oei,$ di#o"e. I$ see2i$, !+e e$&o"eabili!y o& a oi$! "%s!ody a,eeme$! !+e pe!i!io$e "a$$o! pe#e$! !+e appli"a!io$ o& A!i"le *4( o& !+e Family Code 3!o !+e ma!!e o& "%s!ody o& a "+ild o& sepaa!ed pae$!s6 by elyi$, o$ !+e alle,ed i$#alidi!y o& !+e di#o"e !+a! !+e pae$!s +ad ob!ai$ed. T+e a,%me$! !+a! &oei,$es i$ !+is %isdi"!io$ ae $o! bo%$d by &oei,$ di#o"e de"ees is +adly $o#el. 0an orn v. Ro(illo se!!led !+e ma!!e by +oldi$, !+a! a$ alie$ spo%se o& a Filipi$o is bo%$d by a di#o"e de"ee ob!ai$ed aboad. T+ee we dismissed !+e alie$ di#o"ee?s >+ilippi$e s%i! &o a""o%$!i$, o& alle,ed pos!Bdi#o"e "o$%,al pope!y a$d ee"!ed +is s%bmissio$ !+a! !+e &oei,$ di#o"e 3ob!ai$ed by !+e Filipi$o spo%se6 is $o! #alid i$ !+is %isdi"!io$. I$ !+a! "ase !+e "o%! %led !+a! !+ee "a$ be $o H%es!io$ as !o !+e #alidi!y o& !+a! =e#ada di#o"e i$ a$y o& !+e S!a!es o& !+e U$i!ed S!a!es. T+e de"ee is bi$di$, o$ pi#a!e espo$de$! as a$ Amei"a$ "i!i-e$. I! is !%e !+a! owi$, !o !+e $a!io$ali!y pi$"iple embodied i$ A!i"le 45 o& !+e Ci#il Code o$ly >+ilippi$e $a!io$als ae "o#eed by !+e poli"y a,ai$s! absol%!e di#o"es !+e same bei$, "o$sideed "o$!ay !o o% "o$"ep! o& p%bli" poli"y a$d moali!y. 8owe#e alie$s may ob!ai$ di#o"es aboad w+i"+ may be e"o,$i-ed i$ !+e >+ilippi$es po#ided !+ey ae #alid a""odi$, !o !+ei $a!io$al law. I$ !+is "ase !+e di#o"e i$ =e#ada eleased pi#a!e espo$de$! &om !+e maia,e &om !+e s!a$dads o& Amei"a$ law %$de w+i"+ di#o"e dissol#es !+e maia,e. T+%s p%s%a$! !o +is $a!io$al law pi#a!e espo$de$! is $o lo$,e !+e +%sba$d o& pe!i!io$e. 8e wo%ld +a#e $o s!a$di$, !o s%e i$ !+e "ase below as pe!i!io$e?s +%sba$d e$!i!led !o e9e"ise "o$!ol o#e "o$%,al asse!s. As +e is bo%$d by !+e @e"isio$ o& +is ow$ "o%$!y?s Co%! w+i"+ #alidly e9e"ised %isdi"!io$ o#e +im a$d w+ose de"isio$ +e does $o! ep%dia!e +e is es!opped by +is ow$ epese$!a!io$ be&oe said Co%! &om asse!i$, +is i,+! o#e !+e alle,ed "o$%,al pope!y. We ei!ea!ed 0an orn i$ Pilapil v. I)ay8So(era !o dismiss "imi$al "omplai$!s &o ad%l!ey &iled by !+e alie$ di#o"ee 3w+o ob!ai$ed !+e &oei,$ di#o"e de"ee6 a,ai$s! +is &ome Filipi$o spo%se be"a%se +e $o lo$,e H%ali&ied as /o&&e$ded spo%se7 e$!i!led !o &ile !+e "omplai$!s %$de >+ilippi$e po"ed%al %les. T+%s i! s+o%ld be "lea by $ow !+a! a &oei,$ di#o"e de"ee "aies as m%"+ #alidi!y a,ai$s! !+e alie$ di#o"ee i$ !+is %isdi"!io$ as i! does i$ !+e %isdi"!io$ o& !+e alie$?s $a!io$ali!y iespe"!i#e o& w+o ob!ai$ed !+e di#o"e. 9erald Black acasin vs. Sharon el /undo acasin, ".R. #o. $'%2%&, e)ruary &, +$. OI@ MARRIAGE Family Code; Appli"a!io$ o& Family Code. I$ !+e @e"isio$ da!ed Sep!embe *' *))' !+e Co%! a&&imed pe!i!io$e?s "o$#i"!io$ &o bi,amy. >e!i!io$e mo#ed &o e"o$sidea!io$ o& !+e @e"isio$ a,%i$, !+a! si$"e pe!i!io$e?s maia,es wee e$!eed i$!o be&oe !+e e&&e"!i#i!y o& !+e Family Code !+e$ !+e appli"able law is Se"!io$ *' o& !+e Maia,e Law 3A"! (4(6 i$s!ead o& A!i"le <) o& !+e Family Code w+i"+ eH%ies a &i$al %d,me$! de"lai$, !+e pe#io%s maia,e #oid be&oe a peso$ may "o$!a"! a s%bseH%e$! maia,e. >e!i!io$e?s a,%me$! la"2s mei!. As &a ba"2 as 4''5 i$ Atien5a v. Brillantes, ;r . !+e Co%! aleady made !+e de"laa!io$ !+a! A!i"le <) w+i"+ is a %le o& po"ed%e s+o%ld be applied e!oa"!i#ely be"a%se A!i"le *5 o& !+e Family Code i!sel& po#ides !+a! said /Code s+all +a#e e!oa"!i#e e&&e"! i$so&a as i! does $o! pe%di"e o impai #es!ed o a"H%ied i,+!s.7 T+e &a"! !+a! po"ed%al s!a!%!es may some+ow a&&e"! !+e li!i,a$!s? i,+!s may $o! pe"l%de !+ei e!oa"!i#e appli"a!io$ !o pe$di$, a"!io$s. T+e e!oa"!i#e appli"a!io$ o& po"ed%al laws is $o! #iola!i#e o& a$y i,+! o& a peso$ w+o may &eel !+a! +e is ad#esely a&&e"!ed. T+e easo$ is !+a! as a ,e$eal %le $o #es!ed i,+! may a!!a"+ !o $o aise &om po"ed%al laws. 0ictoria S. ;arillo vs. People of the Philippines, ".R. #o. $'**<&, ;une +-, +$ . Family Code; pes%mp!io$ o& dea!+; s%mmay %di"ial po"eedi$,s %$de !+e Family Code. U$de A!i"le <4 o& !+e Family Code !+e losi$, pa!y i$ a s%mmay po"eedi$, &o !+e de"laa!io$ o& pes%mp!i#e dea!+ may &ile a pe!i!io$ &o "e!ioai wi!+ !+e CA o$ !+e ,o%$d !+a! i$ e$dei$, %d,me$! !+eeo$ !+e !ial "o%! "ommi!!ed ,a#e ab%se o& dis"e!io$ amo%$!i$, !o la"2 o& %isdi"!io$. Fom !+e de"isio$ o& !+e CA !+e a,,ie#ed pa!y may ele#a!e !+e ma!!e !o !+is Co%! #ia a pe!i!io$ &o e#iew o$ "e!ioai %$de R%le <5 o& !+e R%les o& Co%!. Repu)lic of the Philippines vs. =olanda !adacio "ranada ; G.R. =o. 40K54* %$e 4( *)4*. Maia,e; pes%mp!io$ o& dea!+. A pe!i!io$ &o %di"ial de"laa!io$ !+a! pe!i!io$e?s +%sba$d is pes%med !o be dead "a$$o! be e$!e!ai$ed be"a%se i! is $o! a%!+oi-ed by law. U$de !+e Ci#il Code !+e pes%mp!io$ o& dea!+ is es!ablis+ed by law a$d $o "o%! de"laa!io$ is $eeded &o !+e pes%mp!io$ !o aise. Si$"e dea!+ is pes%med !o +a#e !a2e$ pla"e by !+e se#e$!+ yea o& abse$"e So&io is !o be pes%med dead s!a!i$, O"!obe 4'0*.
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Maia,e; a$$%lme$! by easo$ o& psy"+olo,i"al i$"apa"i!y. T+e Co%! +eld !+a! !+e lowe "o%! did $o! "ommi! ,a#e ab%se w+e$ i! dismissed !+e pe!i!io$ &o a$$%lme$! o& maia,e so !+e "ase eally !%$ed o$ a po"ed%al iss%e. anilo A. Aurelio vs. 0ida /a. !ora5on P. Aurelio, G.R. =o. 4K5(K. %$e *)44 Maia,e; a$$%lme$!; psy"+olo,i"al i$"apa"i!y. %aels &i$a$"ial di&&i"%l!ies woma$i-i$, o& pe!i!io$e 1 soy $o psy"+olo,i"al i$"apa"i!y. T+e S%peme Co%! &o%$d !+e !es!imo$y o& !+e psy"+ia!is! !o be ,e$eal $o! i$Bdep!+ does $o! es!ablis+ li$2 be!wee$ a"!io$s o& pa!y a$d +is s%pposed psy"+olo,i"al i$"apa"i!y. =o ma!!e !+a! !+e OSG did $o! pese$! i!s ow$ e9pe!; i! does $o! +a#e !+e b%de$ o& poo& i$ a$ a$$%lme$! "ase. Rosalino L. /ara)le vs. /yrna . /ara)le> ".R. #o. $2%2*$, ;anuary $2, +$$. Maia,e; a$$%lme$!; psy"+olo,i"al i$"apa"i!y. T+e S%peme Co%! ei!ea!es i!s Sa$!os a$d Moli$a %li$,s ba"2!a"2s o$ !+e Te "ase a$d &i$ds !+a! pesis!e$! se9%al i$&ideli!y 3!+e wi&e "%"2olds a mili!ay o&&i"e6 a$d aba$do$me$! ae $o! bad,es o& psy"+olo,i"al i$"apa"i!y pa!i"%laly i$ abse$"e o& poo& !+a! !+ese "a$ be !a"ed !o oo!s pio !o !+e maia,e. Read i! &o !+e !ea!me$! o& !+e 2ey "ases o& Sa$!os Moli$a a$d Te a$d !o see +ow a$o!+e psy"+ia!is!?s !es!imo$y bi!es !+e d%s!. ;ose Reynaldo B. 3chosa vs. Bona ;. Alano and Repu)lic of the Philippines> ".R. #o. $'2*&-, ;anuary +', +$$. Maia,e; a$$%lme$!; psy"+olo,i"al i$"apa"i!y. Fo psy"+olo,i"al i$"apa"i!y o& a spo%se !o se#e as ,o%$d &o a$$%lli$, a maia,e !+e i$"apa"i!y m%s! "o$sis! o& !+e &ollowi$,: 3a6 a !%e i$abili!y !o "ommi! o$esel& !o !+e esse$!ials o& maia,e; 3b6 !+is i$abili!y !o "ommi! o$esel& m%s! e&e !o !+e esse$!ial obli,a!io$s o& maia,e: !+e "o$%,al a"! !+e "omm%$i!y o& li&e a$d lo#e !+e e$dei$, o& m%!%al +elp !+e po"ea!io$ a$d ed%"a!io$ o& o&&spi$,; a$d 3"6 !+e i$abili!y m%s! be !a$!amo%$! !o a psy"+olo,i"al ab$omali!y. I! is $o! e$o%,+ !o po#e !+a! a spo%se &ailed !o mee! +is espo$sibili!y a$d d%!y as a maied peso$; i! is esse$!ial !+a! +e m%s! be s+ow$ !o be i$"apable o& doi$, so d%e !o some psy"+olo,i"al ill$ess. T+a! espo$de$! a""odi$, !o pe!i!io$e /la"2Ded e&&e"!i#e se$se o& a!io$al %d,me$! a$d espo$sibili!y7 does $o! mea$ +e is i$"apable !o mee! +is mai!al obli,a!io$s. 8is e&%sal !o +elp "ae &o !+e "+ilde$ +is $e,le"! &o +is b%si$ess #e$!%es a$d +is alle,ed %$beaable ealo%sy may i$di"a!e some emo!io$al !%moil o me$!al di&&i"%l!y b%! $o$e +a#e bee$ s+ow$ !o amo%$! !o a psy"+olo,i"al ab$omali!y. Moeo#e e#e$ ass%mi$, !+a! espo$de$!?s &a%l!s amo%$! !o psy"+olo,i"al i$"apa"i!y i! +as $o! bee$ es!ablis+ed !+a! !+e same e9is!ed a! !+e !ime o& !+e "eleba!io$ o& !+e maia,e. I$ +is psy"+olo,i"al epo! !+e psy"+olo,is! meely said /Dbe"a%se o$e?s peso$ali!y o "+aa"!e is &omed ealy i$ li&e i! +as a "lea A=TECE@E=T a$d i! +as a$ e$d%i$, pa!!e$ o& i$$e e9peie$"e !+a! de#ia!es &om !+e e9pe"!a!io$s o& !+e i$di#id%al?s "%l!%e7 wi!+o%! e9plai$i$, !+is a$!e"ede$!. E#e$ pe!i!io$e i$ +e alle,a!io$s $e#e e9plai$ed +ow !+e alle,ed psy"+olo,i"al i$"apa"i!y ma$i&es!ed i!sel& pio !o o a! !+e !ime o& !+e "eleba!io$ o& !+ei maia,e. Li2ewise mili!a!i$, a,ai$s! pe!i!io$e?s "a%se is !+e &i$di$, o& !+e !ial "o%! a$d !+e same was a&&imed by !+e CA !+a! espo$de$! $e#e "ommi!!ed i$&ideli!y o p+ysi"ally ab%sed pe!i!io$e o !+ei "+ilde$. I$ &a"! "o$sidei$, !+a! !+e "+ilde$ li#ed wi!+ bo!+ pae$!s i! is sa&e !o ass%me !+a! bo!+ made a$ impa"! i$ !+e "+ilde$?s %pbi$,i$,. A$d s!ill as &o%$d by !+e RTC a$d !+e CA !+e pa!ies wee able !o aise !+ee "+ilde$ i$!o ad%l!+ood /wi!+o%! a$y mao pae$!i$, poblems.7 S%"+ &a"! "o%ld +adly s%ppo! a poposi!io$ !+a! !+e pa!ies? maia,e is a $%lli!y. !ynthia ?. =a()ao vs. Repu)lic of the Philippines and Patricio ?. =a()ao> ".R. #o. $%*'<, ;anuary +*, +$$ . Maia,e; a$$%lme$!; psy"+olo,i"al i$"apa"i!y. T+is "ase ei!ea!es !+e pe#io%s %li$,s o& Santos a$d /olina a$d pese$!s a$o!+e e9ample o& !+e S%peme Co%!?s $o! bei$, !oo !a2e$ wi!+ !+e !es!imo$y o& !+e psy"+ia!is! o !+eapis! e!ai$ed !o po#e !+e psy"+olo,i"al i$"apa"i!y o& o$e o& !+e pa!ies. Lawyes epese$!i$, a spo%se i$ a po!e$!ial a$$%lme$! "ase s+o%ld s!%dy !+e iss%es w+i"+ +a#e bee$ aised by !+e "o%! i$ espe"! o& s%"+ !es!imo$ies. I$ !+is "ase !+e S%peme Co%! obse#ed !+a! w+a! s+o%ld $o! be los! i$ eadi$, a$d applyi$, i!s es!ablis+ed %li$,s is !+e i$!e$! o& !+e law !o "o$&i$e !+e appli"a!io$ o& A!i"le ( o& !+e Family Code !o !+e mos! seio%s "ases o& peso$ali!y disodes !+ese ae !+e disodes !+a! es%l! i$ !+e %!!e i$se$si!i#i!y o i$abili!y o& !+e a&&li"!ed pa!y !o ,i#e mea$i$, a$d si,$i&i"a$"e !o !+e maia,e +e o s+e "o$!a"!ed. F%!+emoe !+e psy"+olo,i"al ill$ess a$d i!s oo! "a%se m%s! +a#e bee$ !+ee &om !+e i$"ep!io$ o& !+e maia,e. Fom !+ese eH%ieme$!s aise !+e "o$"ep! !+a! A!i"le ( o& !+e Family Code does $o! eally dissol#e a maia,e; i! simply e"o,$i-es !+a! there never @as any (arriage in the first place be"a%se !+e a&&li"!io$ 1 aleady !+e$ e9is!i$, 1 was so ,a#e a$d pema$e$! as !o depi#e !+e a&&li"!ed pa!y o& awae$ess o& !+e d%!ies a$d espo$sibili!ies o& !+e ma!imo$ial bo$d +e o s+e was !o ass%me o +ad ass%med.
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B Fail%e !o ma$a,e !+e &amily?s &i$a$"es es%l!i$, i$ !+e loss o& !+e +o%se a$d lo! i$!e$ded !o be !+ei &amily eside$"e A""odi$, !o !+e S%peme Co%!: !+is meely "o$s!i!%!ed di&&i"%l!y e&%sal o $e,le"! during the (arriage i$ !+e +a$dli$, o& &%$ds i$!e$ded &o !+e &amily?s &i$a$"ial s%ppo!. B I$&ideli!y A""odi$, !o !+e S%peme Co%!: &o se9%al i$&ideli!y !o "o$s!i!%!e as psy"+olo,i"al i$"apa"i!y !+e espo$de$!?s %$&ai!+&%l$ess m%s! be es!ablis+ed as a ma$i&es!a!io$ o& a disodeed peso$ali!y "omple!ely pe#e$!i$, !+e espo$de$! &om dis"+a,i$, !+e esse$!ial obli,a!io$s o& !+e mai!al s!a!e; !+ee m%s! be poo& o& a $a!al o s%pe#e$i$, disabli$, &a"!o !+a! e&&e"!i#ely i$"apa"i!a!ed spo%se &om "omplyi$, wi!+ !+e obli,a!io$ !o be &ai!+&%l !o +is o +e spo%se. 8ee ae w+a! may be "o$sideed ,%ideli$es o$ !+e 2i$d o& e#ide$"e o !es!imo$y !+a! s+o%ld be pese$!ed based o$ !+is "ase: 3i6 I$ So v. 0alera !+e Co%! "o$sideed !+e psy"+olo,is!?s !es!imo$y a$d "o$"l%sio$s !o be i$s%&&i"ie$!ly i$Bdep!+ a$d "ompe+e$si#e !o waa$! !+e &i$di$, o& espo$de$!?s psy"+olo,i"al i$"apa"i!y be"a%se !+e &a"!s o$ w+i"+ !+e "o$"l%sio$s wee based wee all dei#ed &om !+e pe!i!io$e?s s!a!eme$!s w+ose bias i$ &a#o o& +is "a%se "a$$o! be dis"o%$!ed. 3ii6 I$ a$o!+e "ase Padilla8Ru()aua v. Ru()aua !+e Co%! de"laed !+a! w+ile !+e #aio%s !es!s admi$is!eed o$ !+e pe!i!io$eBwi&e "o%ld +a#e bee$ %sed as a &ai ,a%,e !o assess +e ow$ psy"+olo,i"al "o$di!io$ !+is same s!a!eme$! "o%ld $o! be made wi!+ espe"! !o !+e espo$de$!B+%sba$d?s psy"+olo,i"al "o$di!io$. Co$"l%sio$s a$d ,e$eali-a!io$s abo%! a spo%se?s psy"+olo,i"al "o$di!io$ based solely o$ i$&oma!io$ &ed by !+e o!+e spo%se ae $o! a$y di&&ee$! i$ 2i$d &om admi!!i$, +easay e#ide$"e as poo& o& !+e !%!+&%l$ess o& !+e "o$!e$! o& s%"+ e#ide$"e. 3iii6 To be s%e !+e law does $o! eH%ie !+a! !+e alle,edly i$"apa"i!a!ed spo%se be peso$ally e9ami$ed by a p+ysi"ia$ o by a psy"+olo,is! as a "o$di!io$ sine qua non &o !+e de"laa!io$ o& $%lli!y o& maia,e %$de A!i"le ( o& !+e Family Code. T+is e"o,$i!io$ +owe#e does $o! si,$i&y !+a! !+e e#ide$"e s+o%ld be a$y less !+a$ !+e e#ide$"e !+a! a$ A!i"le ( "ase by i!s $a!%e eH%ies. 3i#6 I! is s!ill esse$!ial 1 al!+o%,+ &om so%"es o!+e !+a$ !+e espo$de$! spo%se 1 !o s+ow +is o +e peso$ali!y po&ile o i!s appo9ima!io$ a! !+e !ime o& maia,e; !+e oo! "a%se o& !+e i$abili!y !o appe"ia!e !+e esse$!ial obli,a!io$s o& maia,e; a$d !+e ,a#i!y pema$e$"e a$d i$"%abili!y o& !+e "o$di!io$. O!+e !+a$ &om !+e spo%ses s%"+ e#ide$"e "a$ "ome &om peso$s i$!ima!ely ela!ed !o !+em s%"+ as ela!i#es "lose &ie$ds o e#e$ &amily do"!os o lawyes w+o "o%ld !es!i&y o$ !+e alle,edly i$"apa"i!a!ed spo%se?s "o$di!io$ a! o abo%! !+e !ime o& maia,e o !o s%bseH%e$! o""%i$, e#e$!s !+a! !a"e !+ei oo!s !o !+e i$"apa"i!y aleady pese$! a! !+e !ime o& maia,e. 3I$ !+e pese$! "ase !+e o$ly o!+e pa!y o%!side o& !+e spo%ses w+o was e#e as2ed !o ,i#e s!a!eme$!s &o p%poses o& !+e spo%se?s psy"+olo,i"al e#al%a!io$ was !+e spo%ses? eldes! so$ w+o wo%ld $o! +a#e bee$ #ey eliable as a wi!$ess i$ a$ A!i"le ( "ase be"a%se +e "o%ld $o! +a#e bee$ !+ee w+e$ !+e spo%ses wee maied a$d "o%ld $o! +a#e bee$ e9pe"!ed !o 2$ow w+a! was +appe$i$, be!wee$ +is pae$!s %$!il lo$, a&!e +is bi!+.6 3#6 T+e S%peme Co%! did $o! "o$side isola!ed i$s!a$"es o& !+e spo%ses &i,+!i$, o#e !+e &oe"los%e o& !+ei +o%se !+e +%sba$d?s alle,ed woma$i-i$, a$d !+ei di&&ee$"es i$ eli,io$ as i$di"a!i#e o& a$y basi" psy"+olo,i"al disode e9is!i$, a! !+e !ime o& maia,e. Fo o$e !+ese poi$!s o& disp%!e ae $o! %$"ommo$ i$ a maia,e a$d ela!e esse$!ially !o !+e %s%al oo!s o& mai!al poblems 1 &i$a$"es &ideli!y a$d eli,io$. 3#i6 I& a psy"+olo,is!?s !es!imo$y will be s%bmi!!ed !+e psy"+olo,i"al e#al%a!io$ s+o%ld &%lly e9plai$ !+e de!ails 1 i.e., !+e w+a! +ow w+e$ w+ee a$d si$"e w+e$ 1 o& !+e spo%se?s alle,ed peso$ali!y disode. I! s+o%ld also e9plai$ !+e i$"apa"i!a!i$, $a!%e o& !+e disode +ow i! ela!ed !o !+e esse$!ial mai!al obli,a!io$s !+a! !+e spo%se &ailed !o ass%me a$d +ow ,a#e a$d i$"%able i! was. Ricardo P. oring vs. eresita /. oring and Repu)lic of the Philippines, ".R. #o. $'&<+$, August <, +$. Maia,e; a$$%lme$!; psy"+olo,i"al i$"apa"i!y> 8ee !es!imo$ies o& !wo "li$i"al psy"+olo,is!s a$d a psy"+ia!is! +ad bee$ pese$!ed !o s+ow !+e i$"apa"i!y o& !+e +%sba$d. T+e Co%! o& Appeals i$ e#esi$, !+e RTC de"isio$ !o a$$%l !+e maia,e /ee"!ed w+olesale !+e !es!imo$ies o& @o"!os Ma,$o a$d ille,as &o bei$, +easay si$"e !+ey $e#e peso$ally e9ami$ed a$d i$!e#iewed !+e espo$de$!.7 T+e S%peme Co%! disa,eed wi!+ !+e CA obse#i$, !+a! !+e la"2 o& peso$al e9ami$a!io$ a$d i$!e#iew o& !+e espo$de$! o a$y o!+e peso$ dia,$osed wi!+ peso$ali!y disode does $o! per se i$#alida!e !+e !es!imo$ies o& !+e do"!os. =ei!+e do !+ei &i$di$,s a%!oma!i"ally "o$s!i!%!e +easay !+a! wo%ld es%l! i$ !+ei e9"l%sio$ as e#ide$"e. Fo o$e maia,e by i!s #ey
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Fo a$o!+e !+e "li$i"al psy"+olo,is!s? a$d psy"+ia!is!?s assessme$! wee $o! based solely o$ !+e $aa!io$ o peso$al i$!e#iew o& !+e pe!i!io$e. O!+e i$&oma$!s s%"+ as espo$de$!?s ow$ so$ sibli$,s a$d i$Blaws a$d sis!eBi$Blaw 3sis!e o& pe!i!io$e6 !es!i&ied o$ !+ei ow$ obse#a!io$s o& espo$de$!?s be+a#io a$d i$!ea"!io$s wi!+ !+em spa$$i$, !+e peiod o& !ime !+ey 2$ew +im. T+ese wee also %sed as !+e basis o& !+e do"!os? assessme$!s. T+e "o%! we$! o$ !o "i!e !+e e"e$! "ase o& Li( v. Sta. !ru58Li( "i!i$, T+e @ia,$os!i" a$d S!a!is!i"al Ma$%al o& Me$!al @isodes Fo%!+ Edi!io$ 3@SM I6 w+i"+ se!s o%! !+e ,e$eal dia,$os!i" "i!eia &o peso$ali!y disodes. >lease "+e"2 !+is o !+a! "ase !o ,e! !+e ,%ideli$es. Wi!+i$ !+ei a"2$owled,ed &ield o& e9pe!ise do"!os "a$ dia,$ose !+e psy"+olo,i"al ma2e %p o& a peso$ based o$ a $%mbe o& &a"!os "%lled &om #aio%s so%"es. A peso$ a&&li"!ed wi!+ a peso$ali!y disode will $o! $e"essaily +a#e peso$al 2$owled,e !+eeo&. I$ !+is "ase "o$sidei$, !+a! ao&peso$ali!y disode is ma$i&es!ed a pa!!e$ o& be+a#io sel&Bdia,$osis by !+e espo$de$! "o$sis!i$, o$ly i$ +is bae de$ial !+e do"!os? sepaa!e dia,$oses i$ does $o! $e"essaily e#o2e "ede$"e a$d "a$$o! !%mp !+e "li$i"al &i$di$,s o& e9pe!s. T+e S%peme Co%! also ee"!ed !+e CA?s #iew !+a! be"a%se o$e o& !+e psy"+olo,is!s +ad e"omme$ded !+eapy s+e belie#e !+e ill$ess was "%able. A e"omme$da!io$ &o !+eapy does $o! a%!oma!i"ally imply cura)ility. I$ ,e$eal e"omme$da!io$s &o !+eapy ae ,i#e$ by "li$i"al psy"+olo,is!s o e#e$ psy"+ia!is!s !o ma$a,e be+a#io. I$ Napla$ a$d Saddo"2?s !e9!boo2 e$!i!led Sy$opsis o& >sy"+ia!y !ea!me$! a$,i$, &om psy"+o!+eapy !o p+ama"o!+eapy &o all !+e lis!ed 2i$ds o& peso$ali!y disodes ae e"omme$ded. I$ s+o! !+e e"omme$da!io$ !+a! espo$de$! s+o%ld %$de,o !+eapy does $o! $e"essaily $e,a!e !+e &i$di$, !+a! espo$de$!?s psy"+olo,i"al i$"apa"i!y is i$"%able. Moeo#e !+e psy"+oli,is! i$ H%es!io$ d%i$, +e !es!imo$y "a!e,oi"ally de"laed !+a! espo$de$! is psy"+olo,i"ally i$"apa"i!a!ed !o pe&om !+e esse$!ial mai!al obli,a!io$s. As ap!ly s!a!ed by %s!i"e Romeo i$ +e sepaa!e opi$io$ i$ !+e %biH%i!o%sly "i!ed "ase o& Repu)lic v. !ourt of Appeals /olina:
CDhe professional opinion of a psychological eEpert )eca(e increasingly i(portant in such cases. ata a)out the person1s entire life, )oth )efore and after the cere(ony, @ere presented to these eEperts and they @ere asked to give professional opinions a)out a party1s (ental capacity at the ti(e of the @edding. T+ese opi$io$s wee aely "+alle$,ed a$d !e$ded !o be a""ep!ed as de"isi#e e#ide$"e o& la"2 o& #alid "o$se$!. De"a%se o& advances (ade in psychology during the past decades. here @as no@ the eEpertise to provide the all8i(portant connecting link )et@een a (arriage )reakdo@n and pre(arital causes. A! !+is poi$! !+e S%peme Co%! $o!ed +ow i! +ad o$ ma$y ma$y o""asio$s esse$!ially ps+awed a! !+e !es!imo$ies o& #aio%s !+eapis!s a$d psy"+ia!is!s: /I! is !%e !+a! a "li$i"al psy"+olo,is!?s o psy"+ia!is!?s dia,$oses !+a! a peso$ +as peso$ali!y disode is $o! a%!oma!i"ally belie#ed by !+e "o%!s i$ "ases o& de"laa!io$ o& $%lli!y o& maia,es. I$deed a "li$i"al psy"+olo,is!?s o psy"+ia!is!?s &i$di$, o& a peso$ali!y disode does $o! e9"l%de a &i$di$, !+a! a maia,e is #alid a$d s%bsis!i$, a$d $o! bese! by o$e o& !+e pa!ies? o bo!+ pa!ies? psy"+olo,i"al i$"apa"i!y. O$ moe !+a$ o$e o""asio$ we +a#e ee"!ed a$ e9pe!?s opi$io$ "o$"e$i$, !+e s%pposed psy"+olo,i"al i$"apa"i!y o& a pa!y I$ !+e "ase a! ba +owe#e e#e$ wi!+o%! !+e e9pe!s? "o$"l%sio$s !+e &a"!%al a$!e"ede$!s 3$aa!i#e o& e#e$!s6 alle,ed i$ !+e pe!i!io$ a$d es!ablis+ed d%i$, !ial all poi$! !o !+e i$e#i!able "o$"l%sio$ !+a! espo$de$! is psy"+olo,i"ally i$"apa"i!a!ed !o pe&om !+e esse$!ial mai!al obli,a!io$s. A!i"le 0 o& !+e Family Code po#ides: A!. 0. T+e +%sba$d a$d wi&e ae obli,ed !o li#e !o,e!+e obse#e m%!%al lo#e espe"! a$d &ideli!y a$d e$de m%!%al +elp a$d s%ppo!. I$ !+is "o$$e"!io$ i! is well !o $o!e !+a! peso$s wi!+ a$!iso"ial peso$ali!y disode e9+ibi! !+e &ollowi$, "li$i"al &ea!%es:
Patients @ith antisocial personality disorder can often see( to )e nor(al and even char(ing and ingratiating. heir histories, ho@ever, reveal (any areas of disordered life functioning. Lying, truancy, running a@ay fro( ho(e, thefts, fights, su)stance a)use, and illegal activities are typical eEperiences that patients report as )eginning in childhood. E E E heir o@n eEplanations of their antisocial )ehavior (ake it see( (indless, )ut their (ental content reveals the co(plete a)sence of delusions and other signs of irrational thinking. In fact, they frequently have a heightened sense of realit testin and o ten i( ress o)servers as havin ood ver)al intelli ence.
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I$ !+e i$s!a$! "ase espo$de$!?s pa!!e$ o& be+a#io ma$i&es!s a$ i$abili!y $ay a psy"+olo,i"al i$"apa"i!y !o pe&om !+e esse$!ial mai!al obli,a!io$s as s+ow$ by +is: 346 spoadi" &i$a$"ial s%ppo!; 3*6 e9!aBmai!al a&&ais; 3(6 s%bs!a$"e ab%se; 3<6 &ailed b%si$ess a!!emp!s; 356 %$paid mo$ey obli,a!io$s; 36 i$abili!y !o 2eep a ob !+a! is $o! "o$$e"!ed wi!+ !+e &amily b%si$esses; a$d 3K6 "imi$al "+a,es o& estafa. I$ &i$e ,i#e$ !+e &a"!%al milie% o& !+e pese$! "ase a$d i$ li,+! o& !+e &oe,oi$, disH%isi!io$ we &i$d ample basis !o "o$"l%de !+a! espo$de$! was psy"+olo,i"ally i$"apa"i!a!ed !o pe&om !+e esse$!ial mai!al obli,a!io$s a! !+e !ime o& +is maia,e !o !+e pe!i!io$e. Ma. So"oo Cama"+oBReyes #s. Ramo$ Reyes ".R. #o. $%&+%', August $%, +$. Family ela!io$s; a$$%lme$! o& maia,e; psy"+olo,i"al i$"apa"i!y. T+is is a pe!i!io$ &o "e!ioai %$de R%le 5 H%es!io$i$, a Co%! o& Appeals de"isio$ !+a! %led !+a! pi#a!e espo$de$!?s alle,ed se9%al i$&ideli!y emo!io$al imma!%i!y a$d iespo$sibili!y do $o! "o$s!i!%!e psy"+olo,i"al i$"apa"i!y wi!+i$ !+e "o$!empla!io$ o& !+e Family Code a$d !+a! !+e psy"+olo,is! &ailed !o ide$!i&y a$d po#e !+e oo! "a%se !+eeo& o !+a! !+e i$"apa"i!y was medi"ally o "li$i"ally pema$e$! o i$"%able. I$ !+is "ase a! be$"+ !+e Co%! &i$ds $o "ommissio$ o& a ,a#e ab%se o& dis"e!io$ i$ !+e e$di!io$ o& !+e assailed CA de"isio$ dismissi$, pe!i!io$e?s "omplai$! &o de"laa!io$ o& $%lli!y o& maia,e %$de A!i"le ( o& !+e Family Code. A pe!i!io$ &o de"laa!io$ o& $%lli!y o& maia,e is a$"+oed o$ A!i"le ( o& !+e Family Code. >sy"+olo,i"al i$"apa"i!y eH%ied by A!. ( m%s! be "+aa"!ei-ed by 3a6 ,a#i!y 3b6 %idi"al a$!e"ede$"e a$d 3"6 i$"%abili!y. T+e i$"apa"i!y m%s! be ,a#e o seio%s s%"+ !+a! !+e pa!y wo%ld be i$"apable o& "ayi$, o%! !+e odi$ay d%!ies eH%ied i$ maia,e. I! m%s! be oo!ed i$ !+e +is!oy o& !+e pa!y a$!eda!i$, !+e maia,e al!+o%,+ !+e o#e! ma$i&es!a!io$s may eme,e o$ly a&!e !+e maia,e. I! m%s! be i$"%able o e#e$ i& i! wee o!+ewise !+e "%e wo%ld be beyo$d !+e mea$s o& !+e pa!y i$#ol#ed. T+e Co%! li2ewise laid dow$ !+e ,%ideli$es i$ esol#i$, pe!i!io$s &o de"laa!io$ o& $%lli!y o& maia,e based o$ A!i"le ( o& !+e Family Code i$ Repu)lic v. !ourt of Appeals. Rele#a$! !o !+is pe!i!io$ ae !+e &ollowi$,: 346 T+e b%de$ o& poo& !o s+ow !+e $%lli!y o& !+e maia,e belo$,s !o !+e plai$!i&&; 3*6 !+e oo! "a%se o& !+e psy"+olo,i"al i$"apa"i!y m%s! be medi"ally o "li$i"ally ide$!i&ied alle,ed i$ !+e "omplai$! s%&&i"ie$!ly po#e$ by e9pe!s a$d "lealy e9plai$ed i$ !+e de"isio$; 3(6 !+e i$"apa"i!y m%s! be po#e$ !o be e9is!i$, a! !+e /!ime o& !+e "eleba!io$7 o& !+e maia,e; 3<6 s%"+ i$"apa"i!y m%s! also be s+ow$ !o be medi"ally o "li$i"ally pema$e$! o i$"%able; a$d 356 s%"+ ill$ess m%s! be ,a#e e$o%,+ !o bi$, abo%! !+e disabili!y o& !+e pa!y !o ass%me !+e esse$!ial obli,a!io$s o& maia,e. G%ided by !+ese po$o%$"eme$!s i! is !+e Co%!?s "o$sideed #iew !+a! pe!i!io$e?s e#ide$"e &ailed !o es!ablis+ espo$de$!?s psy"+olo,i"al i$"apa"i!y. >e!i!io$e?s !es!imo$y did $o! po#e !+e oo! "a%se ,a#i!y a$d i$"%abili!y o& pi#a!e espo$de$!?s "o$di!io$. E#e$ !+e psy"+olo,is! &ailed !o s+ow !+e oo! "a%se o& +e psy"+olo,i"al i$"apa"i!y. T+e oo! "a%se o& !+e psy"+olo,i"al i$"apa"i!y m%s! be ide$!i&ied as a psy"+olo,i"al ill$ess i!s i$"apa"i!a!i$, $a!%e &%lly e9plai$ed a$d es!ablis+ed by !+e !o!ali!y o& !+e e#ide$"e pese$!ed d%i$, !ial. Moe impo!a$!ly !+e a"!s o& pi#a!e espo$de$! do $o! e#e$ ise !o !+e le#el o& !+e /psy"+olo,i"al i$"apa"i!y7 !+a! !+e law eH%ies. >i#a!e espo$de$!?s a"! o& li#i$, a$ ad%l!eo%s li&e 3wi&e "ame +ome la!e a$d +ad lo#es6 did $o! "ome "a$$o! a%!oma!i"ally be eH%a!ed wi!+ a psy"+olo,i"al disode espe"ially w+e$ $o spe"i&i" e#ide$"e was s+ow$ !+a! pomis"%i!y was a !ai! aleady e9is!i$, a! !+e i$"ep!io$ o& maia,e. >e!i!io$e m%s! be able !o es!ablis+ !+a! espo$de$!?s %$&ai!+&%l$ess is a ma$i&es!a!io$ o& a disodeed peso$ali!y w+i"+ ma2es +e "omple!ely %$able !o dis"+a,e !+e esse$!ial obli,a!io$s o& !+e mai!al s!a!e. @o%b!less !+e pi#a!e espo$de$! was &a &om bei$, a pe&e"! wi&e a$d a ,ood mo!+e. S+e "e!ai$ly +ad some "+aa"!e &laws. %! !+ese impe&e"!io$s do $o! waa$! a "o$"l%sio$ !+a! s+e +ad a psy"+olo,i"al malady a! !+e !ime o& !+e maia,e !+a! e$deed +e i$"apable o& &%l&illi$, +e mai!al a$d &amily d%!ies a$d obli,a!io$s. Silvino A. Ligeralde vs. /ay Ascension A. Patalinghug, et al., ".R. #o. $'%2-', April $&, +$. Maia,e; ,o%$ds &o a$$%lme$!; psy"+olo,i"al i$"apa"i!y. T+e "o%! &o%$d !+e e#ide$"e pese$!ed by !+e wi&e o"ely$ as i$s%&&i"ie$! !o es!ablis+ !+e psy"+olo,i"al i$"apa"i!y o& +e +%sba$d. T+e e9pe! opi$io$ was $o! "o$sideed so e9pe! si$"e !+e psy"+olo,is! dei#ed all +e "o$"l%sio$s &om i$&oma!io$ po#ided by o"ely$ w+ose bias /"a$$o! o& "o%se be do%b!ed7 3so esse$!ially !+e "o%! ass%med wi!+o%! possibili!y o& eo a$d wi!+o%! e#ide$"e as well !+a! o"ely$ was a lia6. T+e "o%! "lai&ied !+a! i! was $o! s%,,es!i$, /!+a! a peso$al e9ami$a!io$ o& !+e pa!y alle,ed !o be psy"+olo,i"ally i$"apa"i!a!ed is ma$da!oy; %isp%de$"e +olds !+a! !+is !ype o& e9ami$a!io$ is $o! a ma$da!oy eH%ieme$!. W+ile s%"+ e9ami$a!io$ is desiable we e"o,$i-e !+a! i! may $o! be pa"!i"al i$ all i$s!a$"es ,i#e$ !+e o&!e$!imes es!a$,ed ela!io$s be!wee$ !+e pa!ies. Fo a de!emi$a!io$ !+o%,+ o& a pa!y?s "omple!e peso$ali!y po&ile i$&oma!io$ "omi$, &om peso$s i$!ima!ely ela!ed !o +im 3s%"+ as !+e pa!y?s "lose ela!i#es a$d &ie$ds6 may be +elp&%l. T+is is a$ appoa"+ i$ !+e appli"a!io$ o& A!i"le ( !+a! allows &le9ibili!y a! !+e same !ime !+a! i! a#oids i& $o! !o!ally obli!ea!e !+e "edibili!y ,aps spaw$ed by s%pposedly e9pe! opi$io$ based e$!iely o$ do%b!&%l so%"es o& i$&oma!io$. Fom !+ese pespe"!i#es we "o$"l%de !+a! !+e psy"+olo,is! %si$, mea,e i$&oma!io$ "omi$, &om a die"!ly i$!ees!ed pa!y "o%ld $o! +a#e se"%ed a "omple!e peso$ali!y po&ile a$d
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!es!imo$y. T+e i$adeH%a"y a$dJo la"2 o& poba!i#e #al%e o& !+e psy"+olo,i"al epo! a$d !+e psy"+olo,is!?s !es!imo$y impel %s !o po"eed !o !+e e#al%a!io$ o& o"ely$?s !es!imo$y !o &i$d o%! w+e!+e s+e po#ided !+e "o%! wi!+ s%&&i"ie$! &a"!s !o s%ppo! a &i$di$, o& A$,eli!o?s psy"+olo,i"al i$"apa"i!y. U$&o!%$a!ely we &i$d o"ely$?s !es!imo$y !o be i$s%&&i"ie$!. o"ely$ meely !es!i&ied o$ A$,eli!o?s +abi!%al d%$2e$$ess ,ambli$, e&%sal !o see2 employme$! a$d !+e p+ysi"al bea!i$,s s+e e"ei#ed &om +im 1 all o& w+i"+ o""%ed after !+e maia,e. Si,$i&i"a$!ly s+e de"laed i$ +e !es!imo$y !+a! A$,eli!o s+owed $o si,$s o& #iole$! be+a#io assu(ing this to )e indicative of a personality disorder d%i$, !+e "o%!s+ip s!a,e o a! !+e ealies! s!a,es o& +e ela!io$s+ip wi!+ +im. S+e !es!i&ied o$ !+e alle,ed p+ysi"al bea!i$,s a&!e !+e maia,e $o! be&oe o a! !+e !ime o& !+e "eleba!io$ o& !+e maia,e. S+e did $o! "lai&y w+e$ !+ese bea!i$,s e9a"!ly !oo2 pla"e 1 w+e!+e i! was $ea o a! !+e !ime o& "eleba!io$ o& !+e maia,e o mo$!+s o yeas a&!e. T+is is a "lea e#ide$!iay ,ap !+a! ma!eially a&&e"!s +e "a%se as !+e law a$d i!s ela!ed %isp%de$"e eH%ie !+a! !+e psy"+olo,i"al i$"apa"i!y m%s! e9is! a! !+e !ime o& !+e "eleba!io$ o& !+e maia,e. 8abi!%al d%$2e$$ess ,ambli$, a$d e&%sal !o &i$d a ob w+ile i$di"a!i#e o& psy"+olo,i"al i$"apa"i!y do $o! by !+emsel#es s+owaspsy"+olo,i"al i$"apa"i!y.+olds All !+ese simply i$di"a!e di&&i"%l!y $e,le"! oo&mee e&%sal !oi$"apa"i!y pe&om mai!al obli,a!io$s !+a! !+e "i!ed %isp%de$"e "a$$o! be "o$sideed !o be "o$s!i!%!i#e psy"+olo,i"al i$ !+e abse$"e o& poo& !+a! !+ese ae ma$i&es!a!io$s o& a$ i$"apa"i!y oo!ed i$ some debili!a!i$, psy"+olo,i"al "o$di!io$ o ill$ess. T+e p+ysi"al #iole$"e alle,edly i$&li"!ed o$ o"ely$ dese#es a di&&ee$! !ea!me$!. W+ile we may "o$"ede !+a! p+ysi"al #iole$"e o$ wome$ i$di"a!es ab$omal be+a#ioal o peso$ali!y pa!!e$s s%"+ #iole$"e s!a$di$, alo$e does $o! "o$s!i!%!e psy"+olo,i"al i$"apa"i!y. %isp%de$"e +olds !+a! !+ee m%s! be e#ide$"e s+owi$, a li$2 medi"al o !+e li2e be!wee$ !+e a"!s !+a! ma$i&es! psy"+olo,i"al i$"apa"i!y a$d !+e psy"+olo,i"al disode i!sel&. T+e e#ide$"e o& !+is $e9%s is ie!ie#ably los! i$ !+e pese$! "ase %$de o% &i$di$, !+a! !+e opi$io$ o& !+e psy"+olo,is! "a$$o! be elied %po$. E#e$ ass%mi$, !+ee&oe !+a! o"ely$?s a""o%$! o& !+e p+ysi"al bea!i$,s s+e e"ei#ed &om A$,eli!o wee !%e !+is e#ide$"e does $o! sa!is&y !+e eH%ieme$! o& A!i"le ( a$d i!s ela!ed %isp%de$"e spe"i&i"ally !+e Santos eH%isi!es.7 D@i,es!e?s $o!e: T+is "ase is %se&%l i$ !+a! i! me$!io$s impo!a$! pe#io%s "ases BB !+e %isp%de$!ial !o%"+s!o$es BB o$ psy"+olo,i"al i$"apa"i!y. %! i! is also pe!!y ama-i$, i$ i!s "omple!e la"2 o& emp+a!+y o se$se !+a! !+e law is $o! some sepaa!e "old +%ma$ "o$s!%"! b%! is !+ee !o +elp %s li#e o% li#es wi!+ di,$i!y a$d a "+a$"e a! +appi$ess. T+e "o%! seems !o allow &o !+e possibili!y !+a! A$,eli!o is $o! o$ly a deadbea! b%! a wi&e bea!e 1 someo$e w+o !+ey wo%ld $o! wis+ o$ a da%,+!e o sis!e a$d w+o !+ey wo%ld pobably !+ea!e$ wi!+ a slow pai$&%l dea!+ i& !+ey !ied !o "ome $ea a lo#ed o$e 1 e9"ep! !+a! si$"e all !+e d%$2e$$ess a$d ,oodB&oB$o!+i$,$ess a$d #iole$"e !oo2 pla"e a&!e !+e weddi$, o"ely$ is s!%"2. Oops soy. 8ee !+e "o%! H%i!e "almly s!a!es !+a! /s%"+ #iole$"e s!a$di$, alo$e does $o! "o$s!i!%!e psy"+olo,i"al i$"apa"i!y.7 O$e does $o! +a#e !o a de,ee i$ psy"+olo,y I !+i$2 see !+a! #iole$"e 1e#e$ !+e abili!y i$%e o$e o$ basis 1 does $o!+a#e de#elop o#e$i,+! a$d wo%ld +a#e!obe,%$ ,emi$a!io$ be&oe!o!+e &is!e#e$ blowa lo#ed is s!%"2. I$ aa epea!ed way #ey simila !o !+e GG Spo!wea "ase 1 %$+appi$ess is a s!a!e o& mi$d b%! $o! a ,o%$d &o es"issio$. ;ocelyn /. Sua5o vs. Angelito Sua5o and Repu)lic of the Philippines, ".R. #o. $'**-<, /arch $+, +$. Family ela!io$s; a$$%lme$! o& maia,e; psy"+olo,i"al i$"apa"i!y. I$ Santos v. !ourt of Appeals !+e "o%! &is! de"laed !+a! psy"+olo,i"al i$"apa"i!y m%s! be "+aa"!ei-ed by 3a6 ,a#i!y 3b6 %di"ial a$!e"ede$"e a$d 3"6 i$"%abili!y. I! m%s! be "o$&i$ed /!o !+e mos! seio%s "ases o& peso$ali!y disodes "lealy demo$s!a!i#e o& a$ %!!e i$se$si!i#i!y o i$abili!y !o ,i#e mea$i$, a$d si,$i&i"a$"e !o !+e maia,e.7 I$ i(ayuga8Laurena v. !ourt of Appeals !+e "o%! e9plai$ed !+ese eleme$!s: 3a6 ,a#i!y 1 i! m%s! be ,a#e a$d seio%s s%"+ !+a! !+e pa!y wo%ld be i$"apable o& "ayi$, o%! !+e odi$ay d%!ies eH%ied i$ a maia,e; 3b6 %di"ial a$!e"ede$"e 1 i! m%s! be oo!ed i$ !+e +is!oy o& !+e pa!y a$!eda!i$, !+e maia,e al!+o%,+ !+e o#e! ma$i&es!a!io$s may eme,e o$ly a&!e !+e maia,e; a$d 3"6 i$"%abili!y 1 I! m%s! be i$"%able o e#e$ i& i! wee o!+ewise !+e "%e wo%ld be beyo$d !+e mea$s o& !+e pa!y i$#ol#ed. T+e !es!imo$y o& !+e psy"+olo,is! !+a! o$e o& !+e pa!ies was s%&&ei$, &om /bodeli$e peso$ali!y disode7 as ma$i&es!ed by +is bei$, a /Mama?s oy7 did $o! "o$s!i!%!e s%&&i"ie$! e#ide$"e o& !+a! pa!y?s "o$di!io$. T+e dia,$osis was o$ly based o$ !+e i$!e#iews wi!+ !+e pe!i!io$i$, spo%se a$d !+e !a$s"ip! o& !+a! spo%se?s !es!imo$y i$ "o%!. T+e psy"+olo,is! did $o! a"!%ally +ea see a$d e#al%a!e !+e espo$de$!. 8e !es!imo$y "o$s!i!%!ed +easay. T+e pese$!a!io$ o& e9pe! poo& pes%pposes a !+oo%,+ a$d i$Bdep! assessme$! o& !+e pa!ies by !+e psy"+olo,is! o e9pe! &o a "o$"l%si#e dia,$osis o& a ,a#e se#ee a$d i$"%able pese$"e o& psy"+olo,i"al i$"apa"i!y. F%!+emoe !+e psy"+olo,is! did $o! pa!i"%laly des"ibe !+e /pa!!e$ o& be+a#io7 w+i"+ s+owed !+a! oda$ i$deed s%&&es &om odeli$e >eso$ali!y @isode. Ga!es also &ailed !o e9plai$ +ow s%"+ a peso$ali!y disode made oda$ psy"+olo,i"ally i$"apa"i!a!ed !o pe&om +is obli,a!io$s as a +%sba$d. I$ a$y "ase !+e alle,ed psy"+olo,i"al "apa"i!y o& !+e espo$de$! was $o! s+ow$ !o be so ,a#e a$d so pema$e$! as !o depi#e +im o& !+e awae$ess o& !+e d%!ies a$d espo$sibili!ies o& !+e ma!imo$ial bo$d. A! wos! Digester1s #ote: he decision as set out in the link says, Fat )estG, )ut that1s o)viously a (istake !+e alle,a!io$s s+ow !+e espo$de$! !o be iespo$sible i$se$si!i#e o emo!io$ally imma!%e. W+a! !+e law eH%ies is dow$i,+! i$"apa"i!y $o! e&%sal o $e,le"! o di&&i"%l!y m%"+ less ill will. T+e mee s+owi$, o& /ie"o$"ilable di&&ee$"es7 a$d /"o$&li"!i$, peso$ali!ies7 does $o! "o$s!i!%!e psy"+olo,i"al i$"apa"i!y. =o was !+ee a$y e#ide$"e !+a! a$y "o$di!io$ as i$"%able. ordan !han Pa5 s. eanice Pavon8Pa5, ".R. #o. $''&2-, e)ruar $%, +$.
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disodes o& !+e pa!ies "o$sidei$, !+a! s%"+ dia,$oses wee made "o%ld +a#e bee$ &%lly es!ablis+ed by psy"+ome!i" a$d $e%olo,i"al !es!s w+i"+ ae desi,$ed !o meas%e spe"i&i" aspe"!s o& people?s i$!elli,e$"e !+i$2i$, o peso$ali!y . Cigester1s #ote: he Supre(e !ourt sa@ fit to cite (aterial on psychological testing to sho@ that parties had not provided adequate )asis for the clai( of psychological incapacity and then goes on to sayHD Co$"ededly a "opy o& @SM I o a$y o& !+e psy"+olo,y !e9!boo2s does $o! !a$s&om a lawye o a %d,e i$!o a po&essio$al psy"+olo,is!. A %d,e s+o%ld $o! s%bs!i!%!e +is ow$ psy"+olo,i"al assessme$! o& !+e pa!ies &o !+a! o& !+e psy"+olo,is! o !+e psy"+ia!is!. 8owe#e a %d,e +as !+e bo%$de$ d%!y !o %le o$ w+a! !+e law is as applied !o a "e!ai$ se! o& &a"!s. Ce!ai$ly as i$ all o!+e li!i,a!io$s i$#ol#i$, !e"+$i"al o spe"ial 2$owled,e a %d,e m%s! &is! a$d &oemos! esol#e !+e le,al H%es!io$ based o$ law a$d %isp%de$"e. T+e e9pe! opi$io$ o& a psy"+ia!is! ai#ed a! a&!e a ma9im%m o& se#e$ +o%s o& i$!e#iew a$d %$s%ppo!ed by sepaa!e psy"+olo,i"al !es!s "a$$o! !ie !+e +a$ds o& !+e !ial "o%! a$d pe#e$! i! &om ma2i$, i!s ow$ &a"!%al &i$di$, o$ w+a! +appe$ed i$ !+is "ase. T+e poba!i#e &o"e o& !+e !es!imo$y o& a$ e9pe! does $o! lie i$ a mee s!a!eme$! o& +is !+eoy o opi$io$ b%! a!+e i$ !+e assis!a$"e !+a! +e "a$ e$de !o !+e "o%!s i$ s+owi$, !+e &a"!s !+a! se#e as a basis &o +is "i!eio$ a$d !+e easo$s %po$ w+i"+ !+e lo,i" o& +is "o$"l%sio$ is &o%$ded. ?d@ard #. Li( vs. /a. !heryl Sta. !ru58Li(, ".R. #o. $2'*'*, e)ruary *, +$. >eso$s; psy"+olo,i"al i$"apa"i!y. I$ Sa$!os #. Co%! o& Appeals !+e Co%! de"laed !+a! /psy"+olo,i"al i$"apa"i!y7 %$de A!i"le ( o& !+e Family Code is $o! mea$! !o "ompe+e$d all possible "ases o& psy"+oses. I! s+o%ld e&e a!+e !o $o less !+a$ a me$!al 3$o! p+ysi"al6 i$"apa"i!y !+a! "a%ses a pa!y !o be !%lyi$"o,$i!i#e o& !+e basi" mai!al "o#e$a$!s !+a! "o$"omi!a$!ly m%s! be ass%med a$d dis"+a,ed by !+e pa!ies !o !+e maia,e. >sy"+olo,i"al i$"apa"i!y m%s! be "+aa"!ei-ed by 3a6 ,a#i!y 3b6 %idi"al a$!e"ede$"e a$d 3"6i$"%abili!y. 0eronica !a)acungan Alca5ar vs. Rey !. Alca5ar, ".R. #o. $2**&$, 3cto)er $<, +-. >eso$s; psy"+olo,i"al i$"apa"i!y. I! m%s! be s!essed !+a! psy"+olo,i"al i$"apa"i!y m%s! be moe !+a$ %s! a /di&&i"%l!y7 /e&%sal7 o /$e,le"!7 i$ !+e pe&oma$"e o& some mai!al obli,a!io$s. T+e i$!e$!io$ o& !+e law is !o "o$&i$e !+e mea$i$, o& /psy"+olo,i"al i$"apa"i!y7 !o !+e mos! seio%s "ases o& peso$ali!y disodes "lealy demo$s!a!i#e o& a$ %!!e i$se$si!i#i!y o i$abili!y !o ,i#e mea$i$, a$d si,$i&i"a$"e !o !+e maia,e. =o!ewo!+y as ap!ly poi$!ed o%! by !+e appella!e "o%! Rodol&o a$d A%oa i$i!ially +ad a bliss&%l mai!al %$io$ &o se#eal yeas. T+ey maied i$ 4'0* a$d la!e a&&imed !+e "eemo$y i$ "+%"+ i!es i$ 4'0( s+owi$, lo#e a$d "o$!e$!me$! wi!+ o$e a$o!+e a&!e a yea o& maia,e. T+e le!!e o& pe!i!io$e da!ed Apil 4 4'')addessed !o espo$de$! e#ealed !+e +amo$io%s ela!io$s+ip o& !+e "o%ple "o$!i$%ed d%i$, !+ei maia,e &o abo%! ei,+! yeas &om !+e !ime !+ey maied ea"+ o!+e. Fom !+is i! "a$ be i$&eed !+a! !+ey wee able !o &ai!+&%lly "omply wi!+ !+ei obli,a!io$s !o ea"+ o!+e a$d !o !+ei "+ilde$. A%oa was s+ow$ !o +a#e !a2e$ "ae o& +e "+ilde$ a$d emai$ed &ai!+&%l !o +e +%sba$d w+ile +e was away. S+e e#e$ oi$ed sales a"!i#i!ies !o a%,me$! !+e &amily i$"ome. S+e appeaed !o be a #ey "apable woma$ w+o !a#eled a lo! a$d p%s%ed s!%dies +ee a$d aboad. I! was o$ly w+e$ Rodol&o?s a"!s o& i$&ideli!y wee dis"o#eed !+a! !+e maia,e s!a!ed !o &ail. Rodolfo A. Aspillaga vs. Aurora A. Aspillaga, ".R. #o. $2-+&, 3cto)er +', +-. >eso$s; psy"+olo,i"al i$"apa"i!y. T+e S%peme Co%! laid dow$ i$ Rep%bli" o& !+e >+ilippi$es #. Co%! o& Appeals a$d Moli$a s!i$,e$! ,%ideli$es i$ !+e i$!epe!a!io$ a$d appli"a!io$ o& A!i"le ( o& !+e Family Code !o wi!: 346 T+e b%de$ o& poo& !o s+ow !+e $%lli!y o& !+e maia,e belo$,s !o !+e plai$!i&&. A$y do%b! s+o%ld be esol#ed i$ &a#o o& !+e e9is!e$"e a$d "o$!i$%a!io$ o& !+e maia,e a$d a,ai$s! i!s dissol%!io$ a$d $%lli!y. T+is is oo!ed i$ !+e &a"! !+a! bo!+ o% Co$s!i!%!io$ a$d o% laws "+eis+ !+e #alidi!y o& maia,e a$d %$i!y o& !+e &amily. T+%s o% Co$s!i!%!io$ de#o!es a$ e$!ie A!i"le o$ !+e Family e"o,$i-i$, i! /as !+e &o%$da!io$ o& !+e $a!io$.7 I! de"ees maia,e as le,ally /i$#iolable7 !+eeby po!e"!i$, i! &om dissol%!io$ a! !+e w+im o& !+e pa!ies. o!+ !+e &amily a$d maia,e ae !o be /po!e"!ed7 by !+e s!a!e. T+e Family Code e"+oes !+is "o$s!i!%!io$al edi"! o$ maia,e a$d !+e &amily a$d emp+asi-es !+ei pema$e$"e i$#iolabili!y a$d solidai!y. 3*6 T+e oo! "a%se o& !+e psy"+olo,i"al i$"apa"i!y m%s! be: 3a6 medi"ally o "li$i"ally ide$!i&ied 3b6 alle,ed i$ !+e "omplai$! 3"6 s%&&i"ie$!ly po#e$ by e9pe!s a$d 3d6 "lealy e9plai$ed i$ !+e de"isio$. A!i"le ( o& !+e Family Code eH%ies !+a! !+e i$"apa"i!y m%s! be psy"+olo,i"al 1 $o! p+ysi"al al!+o%,+ i!s ma$i&es!a!io$s a$dJo symp!oms may be p+ysi"al. T+e e#ide$"e m%s! "o$#i$"e !+e "o%! !+a! !+e pa!ies o o$e o& !+em was me$!ally o psy"+i"ally ill !o s%"+ a$ e9!e$! !+a! !+e peso$ "o%ld $o! +a#e 2$ow$ !+e obli,a!io$s +e was ass%mi$, o 2$owi$, !+em "o%ld $o! +a#e ,i#e$ #alid ass%mp!io$ !+eeo&. Al!+o%,+ $o e9ample o& s%"+ i$"apa"i!y $eed be ,i#e$ +ee so as $o! !o limi! !+e appli"a!io$ o& !+e po#isio$ %$de !+e pi$"iple o& e%sdem ,e$eis 3Sali!a #. Ma,!olis *(( SCRA 4)) 4)06 $e#e!+eless s%"+ oo! "a%se m%s! be ide$!i&ied as a
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3<6 S%"+ i$"apa"i!y m%s! also be s+ow$ !o be medi"ally o "li$i"ally pema$e$! o i$"%able. S%"+ i$"%abili!y may be absol%!e o e#e$ ela!i#e o$ly i$ e,ad !o !+e o!+e spo%se $o! $e"essaily absol%!ely a,ai$s! e#eyo$e o& !+e same se9. F%!+emoe s%"+ i$"apa"i!y m%s! be ele#a$! !o !+e ass%mp!io$ o& maia,e obli,a!io$s $o! $e"essaily !o !+ose $o! ela!ed !o maia,e li2e !+e e9e"ise o& a po&essio$ o employme$! i$ a ob. 8e$"e a pedia!i"ia$ may be e&&e"!i#e i$ dia,$osi$, ill$esses o& "+ilde$ a$d pes"ibi$, medi"i$e !o "%e !+em b%! may $o! be psy"+olo,i"ally "apa"i!a!ed !o po"ea!e bea a$d aise +isJ+e ow$ "+ilde$ as a$ esse$!ial obli,a!io$ o& maia,e. 356 S%"+ ill$ess m%s! be ,a#e e$o%,+ !o bi$, abo%! !+e disabili!y o& !+e pa!y !o ass%me !+e esse$!ial obli,a!io$s o& maia,e. T+%s /mild "+aa"!eiolo,i"al pe"%liai!ies mood "+a$,es o""asio$al emo!io$al o%!b%s!s7 "a$$o! be a""ep!ed as oo! "a%ses. T+e ill$ess m%s! be s+ow$ as dow$i,+! i$"apa"i!y o i$abili!y $o! a e&%sal $e,le"! o di&&i"%l!y m%"+ less ill will. I$ o!+e wods !+ee is a $a!al o s%pe#e$i$, disabli$, &a"!o i$ !+e peso$ a$ ad#ese i$!e,al eleme$! i$ !+e peso$ali!y s!%"!%e !+a! e&&e"!i#ely i$"apa"i!a!es !+e peso$ &om eally a""ep!i$, a$d !+eeby "omplyi$, wi!+ !+e obli,a!io$s esse$!ial !o maia,e. 36 T+e esse$!ial mai!al obli,a!io$s m%s! be !+ose emba"ed by A!i"les 0 %p !o K4 o& !+e Family Code as e,ads !+e +%sba$d a$d wi&e as well as A!i"les **) **4 a$d **5 o& !+e same Code i$ e,ad !o pae$!s a$d !+ei "+ilde$. S%"+ $o$B "omplied mai!al obli,a!io$3s6 m%s! also be s!a!ed i$ !+e pe!i!io$ po#e$ by e#ide$"e a$d i$"l%ded i$ !+e !e9! o& !+e de"isio$. 3K6 I$!epe!a!io$s ,i#e$ by !+e =a!io$al Appella!e Ma!imo$ial Tib%$al o& !+e Ca!+oli" C+%"+ i$ !+e >+ilippi$es w+ile $o! "o$!olli$, o de"isi#e s+o%ld be ,i#e$ ,ea! espe"! by o% "o%!s. I$ Sa$!os #. Co%! o& Appeals !+e Co%! de"laed !+a! psy"+olo,i"al i$"apa"i!y m%s! be "+aa"!ei-ed by 3a6 ,a#i!y 3b6 %idi"al a$!e"ede$"e a$d 3"6 i$"%abili!y. I! s+o%ld e&e !o /$o less !+a$ a me$!al $o! p+ysi"al i$"apa"i!y !+a! "a%ses a pa!y !o be !%ly i$"o,$i!i#e o& !+e basi" mai!al "o#e$a$!s !+a! "o$"omi!a$!ly m%s! be ass%med a$d dis"+a,ed by !+e pa!ies !o !+e maia,e.7 T+e i$!e$dme$! o& !+e law +as bee$ !o "o$&i$e !+e mea$i$, o& /psy"+olo,i"al i$"apa"i!y7 !o !+e mos! seio%s "ases o& peso$ali!y disodes "lealy demo$s!a!i#e o& a$ %!!e i$se$si!i#i!y o i$abili!y !o ,i#e mea$i$, a$d si,$i&i"a$"e !o !+e maia,e. 8owe#e i$ moe e"e$! %isp%de$"e !+e S%peme Co%! obse#ed !+a! $o!wi!+s!a$di$, !+e ,%ideli$es laid dow$ i$ Moli$a !+ee is a $eed !o emp+asi-e o!+e pespe"!i#es as well w+i"+ s+o%ld ,o#e$ !+e disposi!io$ o& pe!i!io$s &o de"laa!io$ o& $%lli!y %$de A!i"le (. Ea"+ "ase m%s! be %d,ed $o! o$ !+e basis o& a pioi ass%mp!io$s pedile"!io$s o ,e$eali-a!io$s b%! a""odi$, !o i!s ow$ &a"!s. I$ e,ad !o psy"+olo,i"al i$"apa"i!y as a ,o%$d &o a$$%lme$! o& maia,e i! is !i!e !o say !+a! $o "ase is o$ /all &o%s7 wi!+ a$o!+e "ase. T+e !ial %d,e m%s! !a2e pai$s i$ e9ami$i$, !+e &a"!%al milie% a$d !+e appella!e "o%! m%s! as m%"+ as possible a#oid s%bs!i!%!i$, i!s ow$ %d,me$! &o !+a! o& !+e !ial "o%!. Wi!+ !+e ad#e$! o& Te #. Te !+e S%peme Co%! e$"o%a,es a ee9ami$a!io$ o& %isp%de$!ial !e$ds o$ !+e i$!epe!a!io$ o& A!i"le ( al!+o%,+ !+ee +as bee$ $o mao de#ia!io$ o paadi,m s+i&! &om !+e Moli$a do"!i$e. /arietta !. A5cueta vs. Repu)lic of the Philippines and the !A G.R. =o. 40)0 May * *))'. Maia,e; a$$%lme$!. >sy"+olo,i"al i$"apa"i!y m%s! be "+aa"!ei-ed by 346 ,a#i!y 3*6 %idi"al a$!e"ede$"e a$d 3(6 i$"%abili!y. T+e &oe,oi$, ,%ideli$es do $o! eH%ie !+a! a p+ysi"ia$ e9ami$e !+e peso$ !o be de"laed psy"+olo,i"ally i$"apa"i!a!ed. I$ &a"! !+e oo! "a%se may be /medi"ally o "li$i"ally ide$!i&ied.7 W+a! is impo!a$! is !+e pese$"e o& e#ide$"e !+a! "a$ adeH%a!ely es!ablis+ !+e pa!y?s psy"+olo,i"al "o$di!io$. Fo i$deed i& !+e !o!ali!y o& e#ide$"e pese$!ed is e$o%,+ !o s%s!ai$ a &i$di$, o& psy"+olo,i"al i$"apa"i!y !+e$ a"!%al medi"al e9ami$a!io$ o& !+e peso$ "o$"e$ed $eed $o! be eso!ed !o. I$ !+is "ase !+e S%peme Co%! a,eed wi!+ !+e Co%! o& Appeals !+a! !+e !o!ali!y o& !+e e#ide$"e s%bmi!!ed by pe!i!io$e &ailed !o sa!is&a"!oily po#e !+a! espo$de$! was psy"+olo,i"ally i$"apa"i!a!ed !o "omply wi!+ !+e esse$!ial obli,a!io$s o& maia,e. T+e oo! "a%se o& espo$de$!?s alle,ed psy"+olo,i"al i$"apa"i!y was $o! s%&&i"ie$!ly po#e$ by e9pe!s o s+ow$ !o be medi"ally o "li$i"ally pema$e$! o i$"%able. igna A. #aera vs. ?duardo ;. #aera, G.R. =o. 4<04K %ly ( *))'. Maia,e; psy"+olo,i"al i$"apa"i!y. I! +as bee$ s%&&i"ie$!ly es!ablis+ed !+a! pe!i!io$e +ad a psy"+olo,i"al "o$di!io$ !+a! was ,a#e a$d i$"%able a$d +ad a deeply oo!ed "a%se. T+is Co%! i$ !+e same Te "ase e"o,$i-ed !+a! i$di#id%als wi!+ dia,$osable peso$ali!y disodes %s%ally +a#e lo$,B!em "o$"e$s a$d !+%s !+eapy may be lo$,B!em.>a!i"%laly peso$ali!y disodes ae /lo$,Bs!a$di$, i$&le9ible ways o& be+a#i$, !+a! ae $o! so m%"+ se#ee me$!al disodes as dys&%$"!io$al s!yles o& li#i$,. T+ese disodes a&&e"! all aeas o& &%$"!io$i$, a$d be,i$$i$, i$ "+ild+ood o adoles"e$"e "ea!e oblems &o !+ose w+o dis la !+em a$d &o o!+es.7
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Maia,e; psy"+olo,i"al i$"apa"i!y. T+e psy"+olo,is!?s !es!imo$y a$d "o$"l%sio$s leads %s !o "o$"l%de !+a! !+ey ae $o! s%&&i"ie$!ly i$Bdep!+ a$d "ompe+e$si#e !o waa$! !+e "o$"l%sio$ !+a! a psy"+olo,i"al i$"apa"i!y e9is!ed !+a! pe#e$!ed !+e espo$de$! &om "omplyi$, wi!+ !+e esse$!ial mai!al obli,a!io$s o& maia,e. Renato Reyes So vs. Lorna 0alera G.R. =o. 45)KK %$e 5 *))' Maia,e; ,o#e$i$, law depe$ds o$ w+e$ "eleba!ed; impa"! o$ w+o "a$ &ile &o pe!i!io$ o& $%lli!y. A valid maia,e is esse$!ial i$ ode !o "ea!e !+e ela!io$ o& +%sba$d a$d wi&e a$d !o ,i#e ise !o !+e m%!%al i,+!s d%!ies a$d liabili!ies aisi$, o%! o& s%"+ ela!io$. T+e law pes"ibes !+e eH%isi!es o& a #alid maia,e. 8e$"e !+e #alidi!y o& a maia,e is !es!ed a""odi$, !o !+e law i$ &o"e a! !+e !ime !+e maia,e is "o$!a"!ed. As a ,e$eal %le !+e $a!%e o& !+e maia,e aleady "eleba!ed "a$$o! be "+a$,ed by a s%bseH%e$! ame$dme$! o& !+e ,o#e$i$, law. To ill%s!a!e a maia,e be!wee$ a s!epbo!+e a$d a s!epsis!e was #oid %$de !+e !ivil !ode b%! is $o! a$ymoe po+ibi!ed %$de !+e a(ily !ode; ye! !+e i$!e#e$i$, e&&e"!i#i!y o& !+e a(ily !ode does $o! a&&e"! !+e #oid $a!%e o& a maia,e be!wee$ a s!epbo!+e a$d a s!epsis!e solem$i-ed %$de !+e e,ime o& !+e !ivil !ode. T+e !ivil !ode maia,e emai$s #oid "o$sidei$, !+a! !+e #alidi!y o& a maia,e is ,o#e$ed by !+e law i$ &o"e a! !+e !ime o& !+e maia,e "eemo$y. e&oe a$y!+i$, moe !+e Co%! +as !o "lai&y !+e impa"! !o !+e iss%e posed +eei$ o& Admi$is!a!i#e Ma!!e 3A.M.6 =o. )*B44B 4)BSC 3Rule on eclaration of A)solute #ullity of 0oid /arriages and Annul(ent of 0oida)le /arriages 6 w+i"+ !oo2 e&&e"! o$ Ma"+ 45 *))(. Se"!io$ * paa,ap+ 3a6 o& A.M. =o. )*B44B4)BSC e9pli"i!ly po#ides !+e limi!a!io$ !+a! a pe!i!io$ &o de"laa!io$ o& absol%!e $%lli!y o& #oid maia,e may be &iled solely by !+e +%sba$d o wi&e. S%"+ limi!a!io$ dema"a!es a li$e !o dis!i$,%is+ be!wee$ maia,es "o#eed by !+e a(ily !ode a$d !+ose solem$i-ed %$de !+e e,ime o& !+e !ivil !ode. Spe"i&i"ally A.M. =o. )*B44B4)B SC e9!e$ds o$ly !o maia,es "o#eed by !+e a(ily !ode w+i"+ !oo2 e&&e"! o$ A%,%s! ( 4'00 b%! bei$, a po"ed%al %le !+a! is pospe"!i#e i$ appli"a!io$ is "o$&i$ed o$ly !o po"eedi$,s "omme$"ed after Ma"+ 45 *))(. ased o$ !arlos v. Sandoval, !+e &ollowi$, a"!io$s &o de"laa!io$ o& absol%!e $%lli!y o& a maia,e ae e9"ep!ed &om !+e limi!a!io$ !o wi!: 4.
T+ose "omme$"ed )efore Ma"+ 45 *))( !+e e&&e"!i#i!y da!e o& A.M. =o. )*B44B4)BSC; a$d
*.
T+ose &iled vis8J8vis maia,es "eleba!ed d%i$, !+e e&&e"!i#i!y o& !+e !ivil !ode a$d
(. T+ose "eleba!ed %$de !+e e,ime o& !+e a(ily !ode pio !o Ma"+ 45 *))(. Co$sidei$, !+a! !+e maia,e be!wee$ Cese$"ia$o a$d Leo$ila was "o$!a"!ed o$ @e"embe * 4'<' !+e appli"able law was !+e old !ivil !ode, !+e law i$ e&&e"! a! !+e !ime o& !+e "eleba!io$ o& !+e maia,e. 8e$"e !+e %le o$ !+e e9"l%si#i!y o& !+e pa!ies !o !+e maia,e as +a#i$, !+e i,+! !o i$i!ia!e !+e a"!io$ &o de"laa!io$ o& $%lli!y o& !+e maia,e %$de A.M. =o. )*B44B 4)BSC +ad absol%!ely $o appli"a!io$ !o !+e pe!i!io$e. T+e old a$d $ew !ivil !odes "o$!ai$ $o po#isio$ o$ w+o "a$ &ile a pe!i!io$ !o de"lae !+e $%lli!y o& a maia,e a$d w+e$. A""odi$,ly i$ #iKal v. Bayadog, !+e "+ilde$ wee allowed !o &ile after the death of their father a pe!i!io$ &o !+e de"laa!io$ o& !+e $%lli!y o& !+ei &a!+e?s maia,e !o !+ei s!epmo!+e "o$!a"!ed o$ @e"embe 44 4'0 d%e !o la"2 o& a maia,e li"e$se.
I! is "lai&ied +owe#e !+a! !+e abse$"e o& a po#isio$ i$ !+e old a$d $ew !ivil !odes "a$$o! be "o$s!%ed as ,i#i$, a li"e$se !o %s! a$y peso$ !o bi$, a$ a"!io$ !o de"lae !+e absol%!e $%lli!y o& a maia,e. A""odi$, !o !arlos v. Sandoval !+e plai$!i&& m%s! s!ill be !+e pa!y w+o s!a$ds !o be be$e&i!ed by !+e s%i! o !+e pa!y e$!i!led !o !+e a#ails o& !+e s%i! &o i! is basi" i$ po"ed%al law !+a! e#ey a"!io$ m%s! be pose"%!ed a$d de&e$ded i$ !+e $ame o& !+e eal pa!y i$ i$!ees!. T+%s o$ly !+e pa!y w+o "a$ demo$s!a!e a /pope i$!ees!7 "a$ &ile !+e a"!io$. I$!ees! wi!+i$ !+e mea$i$, o& !+e %le mea$s ma!eial i$!ees! o a$ i$!ees! i$ iss%e !o be a&&e"!ed by !+e de"ee o %d,me$! o& !+e "ase as dis!i$,%is+ed &om mee "%iosi!y abo%! !+e H%es!io$ i$#ol#ed o a mee i$"ide$!al i$!ees!. O$e +a#i$, $o ma!eial i$!ees! !o po!e"! "a$$o! i$#o2e !+e %isdi"!io$ o& !+e "o%! as plai$!i&& i$ a$ a"!io$. W+e$ !+e plai$!i&& is $o! !+e eal pa!y i$ i$!ees! !+e "ase is dismissible o$ !+e ,o%$d o& la"2 o& "a%se o& a"!io$.
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Maia,e; liH%ida!io$ o& pope!y $o! $e"essay be&oe de"laa!io$ o& $%lli!y. Fo A!i"le 4
T+e ma$ a$d !+e woma$ m%s! be "apa"i!a!ed !o may ea"+ o!+e; T+ey li#e e9"l%si#ely wi!+ ea"+ o!+e as +%sba$d a$d wi&e; a$d T+ei %$io$ is wi!+o%! !+e be$e&i! o& maia,e o !+ei maia,e is #oid.
All !+ese eleme$!s ae pese$! i$ !+is "ase a$d !+ee is $o H%es!io$ !+a! A!i"le 4
".R. #o. $2%**, ;anuary $-, +$$ .
OI@ALE MARRIAGE >eso$s; a$$%lme$! o& maia,e. A!i"le <5356 o& !+e Family Code e&es !o la"2 o& powe !o "op%la!e. I$"apa"i!y !o "o$s%mma!e de$o!es !+e pema$e$! i$abili!y o$ !+e pa! o& !+e spo%ses !o pe&om !+e "omple!e a"! o& se9%al i$!e"o%se. =o$B"o$s%mma!io$ o& a maia,e may be o$ !+e pa! o& !+e +%sba$d o o& !+e wi&e a$d may be "a%sed by a p+ysi"al o s!%"!%al de&e"! i$ !+e a$a!omy o& o$e o& !+e pa!ies o i! may be d%e !o "+o$i" ill$ess a$d i$+ibi!io$s o &eas aisi$, i$ w+ole o i$ pa! &ompsy"+op+ysi"al "o$di!io$s. I! may be "a%sed by psy"+o,e$i" "a%ses w+ee s%"+ me$!al blo"2 o dis!%ba$"e +as !+e es%l! o& ma2i$, !+e spo%se p+ysi"ally i$"apable o& pe&omi$, !+e maia,e a"!. =o e#ide$"e was pese$!ed i$ !+e "ase a! ba !o es!ablis+ !+a! espo$de$! was i$ a$y way p+ysi"ally i$"apable !o "o$s%mma!e +is maia,e wi!+ pe!i!io$e. >e!i!io$e e#e$ admi!!ed d%i$, +e "ossBe9ami$a!io$ !+a! s+e a$d espo$de$! +ad se9%al i$!e"o%se a&!e !+ei weddi$, a$d be&oe espo$de$! le&! &o aboad. T+ee ob#io%sly bei$, $o p+ysi"al i$"apa"i!y o$ espo$de$!?s pa! !+e$ !+ee is $o ,o%$d &o a$$%lli$, pe!i!io$e?s maia,e !o espo$de$!. >e!i!io$e?s Complai$! was !+ee&oe i,+!&%lly dismissed. 0eronica !a)acungan Alca5ar vs. Rey !. Alca5ar, ".R. #o. $2**&$, 3cto)er $<, +-. >RO>ERTY RELATIO=S ETWEE= 8USA=@ A=@ WIFE Co$%,al pa!$es+ip pope!y; mo!,a,e; "o$se$! o& spo%se. T+e +%sba$d "a$$o! alie$a!e o e$"%mbe a$y "o$%,al eal pope!y wi!+o%! !+e "o$se$! e9pess o implied o& !+e wi&e. S+o%ld !+e +%sba$d do so !+e$ !+e "o$!a"! is #oidable. A!i"le 4K( o& !+e Ci#il Code allows A,%e!e !o H%es!io$ Ros? e$"%mba$"e o& !+e s%be"! pope!y. 8owe#e !+e same a!i"le does $o! ,%aa$!ee !+a! !+e "o%!s will de"lae !+e a$$%lme$! o& !+e "o$!a"!. A$$%lme$! will be de"laed o$ly %po$ a &i$di$, !+a! !+e wi&e did $o! ,i#e +e "o$se$!. I$ !+e pese$! "ase we &ollow !+e "o$"l%sio$ o& !+e appella!e "o%! a$d %le !+a! A,%e!e ,a#e +e "o$se$! !o Ros? e$"%mba$"e o& !+e s%be"! pope!y. T+e appli"a!io$ &o loa$ s+ows !+a! !+e loa$ wo%ld be %sed e9"l%si#ely /&o addi!io$al wo2i$, D"api!al o& b%y P sell o& ,ali" P #i,i$ia !oba""o.7 I$ +e !es!imo$y A,%e!e "o$&imed !+a! Ros e$,a,ed i$ s%"+ b%si$ess b%! "laimed !o be %$awae w+e!+e i! pospeed. A,%e!e was also awae o& loa$s "o$!a"!ed by Ros b%! did $o! 2$ow w+ee +e /was!ed !+e mo$ey.7 @eb!s "o$!a"!ed by !+e +%sba$d &o a$d i$ !+e e9e"ise o& !+e i$d%s!y o po&essio$ by w+i"+ +e "o$!ib%!es !o !+e s%ppo! o& !+e &amily "a$$o! be deemed !o be +is e9"l%si#e a$d pi#a!e deb!s. ;oe A. Ros and ?strella Aguete v. Philippine #ational Bank, Laoag Branch, ".R. #o. $2$''. April ', +$$. >ope!y o& !+e maia,e; pes%med "o$%,al. All pope!y o& !+e maia,e is pes%med !o be "o$%,al. 8owe#e &o !+is pes%mp!io$ !o apply !+e pa!y w+o i$#o2es i! m%s! &is! po#e !+a! !+e pope!y was a"H%ied d%i$, !+e maia,e. >oo& o& a"H%isi!io$ d%i$, !+e "o#e!%e is a "o$di!io$ sine qua non !o !+e opea!io$ o& !+e pes%mp!io$ i$ &a#o o& !+e "o$%,al pa!$es+ip. T+%s !+e !ime w+e$ !+e pope!y was a"H%ied is ma!eial. ?vangeline . I(ani vs. /etropolitan Bank and rust
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eH%isi!e dili,e$"e $amely: 3a6 !+e dili,e$"e i$ #ei&yi$, !+e #alidi!y o& !+e !i!le "o#ei$, !+e pope!y; a$d 3 )6 !+e dili,e$"e i$ i$H%ii$, i$!o !+e a%!+oi!y o& !+e !a$sa"!i$, spo%se !o sell "o$%,al pope!y i$ be+al& o& !+e o!+e spo%se. Sps. ReE and !oncepcion Agga)ao vs. ionisio 6. Parulan, ;r. and /a. ?lena Parulan, ".R. #o. $'&%<, Septe()er $, +$. Family ela!io$s; sale o& "o$%,al pope!y. T+e law !+a! applies !o !+is "ase is !+e Family Code $o! !+e Ci#il Code. Al!+o%,+ Ta"ia$o a$d Rosaio ,o! maied i$ 4'5) Ta"ia$o sold !+e "o$%,al pope!y !o !+e F%e$!es spo%ses o$ a$%ay 44 4'0' a &ew mo$!+s a&!e !+e Family Code !oo2 e&&e"! o$ A%,%s! ( 4'00. W+e$ Ta"ia$o maied Rosaio !+e Ci#il Code p%! i$ pla"e !+e sys!em o& "o$%,al pa!$es+ip o& ,ai$s o$ !+ei pope!y ela!io$s. W+ile i!s A!i"le 45 made Ta"ia$o !+e sole admi$is!a!o o& !+e "o$%,al pa!$es+ip A!i"le 4 po+ibi!ed +im &om selli$, "ommo$ly ow$ed eal pope!y wi!+o%! +is wi&e?s "o$se$!. S!ill i& +e sold !+e same wi!+o%! +is wi&e?s "o$se$! !+e sale is $o! #oid b%! meely #oidable. A!i"le 4K( ,a#e Rosaio !+e i,+! !o +a#e !+e sale a$$%lled d%i$, !+e maia,e wi!+i$ !e$ yeas &om !+e da!e o& !+e sale. Faili$, i$ !+a! s+e o +e +eis may dema$d a&!e dissol%!io$ o& !+e maia,e o$ly !+e #al%e o& !+e pope!y !+a! Ta"ia$o &a%d%le$!ly sold. %! as aleady s!a!ed !+e Family Code !oo2 e&&e"! o$ A%,%s! ( 4'00. I!s C+ap!e < o$ !onugal Partnership of "ains e9pessly s%peseded Ti!le I oo2 I o& !+e Ci#il Code o$ Property Relations Bet@een 9us)and and ife . F%!+e !+e Family Code po#isio$s wee also made !o apply !o aleady e9is!i$, "o$%,al pa!$es+ips wi!+o%! pe%di"e !o #es!ed i,+!s. T+%s: /A!. 4)5. 9 9 9 T+e po#isio$s o& !+is C+ap!e s+all also apply !o "o$%,al pa!$es+ips o& ,ai$s aleady es!ablis+ed be!wee$ spo%ses be&oe !+e e&&e"!i#i!y o& !+is Code wi!+o%! pe%di"e !o #es!ed i,+!s aleady a"H%ied i$ a""oda$"e wi!+ !+e Ci#il Code o o!+e laws as po#ided i$ A!i"le *5. 3$67 Co$seH%e$!ly w+e$ Ta"ia$o sold !+e "o$%,al lo! !o !+e F%e$!es spo%ses o$ a$%ay 44 4'0' !+e law !+a! ,o#e$ed !+e disposal o& !+a! lo! was aleady !+e Family Code. I$ "o$!as! !o A!i"le 4K( o& !+e Ci#il Code A!i"le 4*< o& !+e Family Code does $o! po#ide a peiod wi!+i$ w+i"+ !+e wi&e w+o ,a#e $o "o$se$! may assail +e +%sba$d?s sale o& !+e eal pope!y. I! simply po#ides !+a! wi!+o%! !+e o!+e spo%se?s wi!!e$ "o$se$! o a "o%! ode allowi$, !+e sale !+e same wo%ld be #oid. U$de !+e po#isio$s o& !+e Ci#il Code ,o#e$i$, "o$!a"!s a #oid o i$e9is!e$! "o$!a"! +as $o &o"e a$d e&&e"! &om !+e #ey be,i$$i$,. A$d !+is %le applies !o "o$!a"!s !+a! ae de"laed #oid by posi!i#e po#isio$ o& law as i$ !+e "ase o& a sale o& "o$%,al pope!y wi!+o%! !+e o!+e spo%se?s wi!!e$ "o$se$!. A #oid "o$!a"! is eH%i#ale$! !o $o!+i$, a$d is absol%!ely wa$!i$, i$ "i#il e&&e"!s. I! "a$$o! be #alida!ed ei!+e by a!i&i"a!io$ o pes"ip!io$. %! al!+o%,+ a #oid "o$!a"! +as $o le,al e&&e"!s e#e$ i& $o a"!io$ is !a2e$ !o se! i! aside w+e$ a$y o& i!s !ems +a#e bee$ pe&omed a$ a"!io$ !o de"lae i!s i$e9is!e$"e is $e"essay !o allow es!i!%!io$ o& w+a! +as bee$ ,i#e$ %$de i!. T+is a"!io$ a""odi$, !o A!i"le 4<4) o& !+e Ci#il Code does $o! pes"ibe. 8ee !+e Ro"as &iled a$ a"!io$ a,ai$s! !+e F%e$!es spo%ses i$ 4''K &o a$$%lme$! o& sale a$d e"o$#eya$"e o& !+e eal pope!y !+a! Ta"ia$o sold wi!+o%! !+ei mo!+e?s 3+is wi&e?s6 wi!!e$ "o$se$!. T+e passa,e o& !ime did $o! eode !+e i,+! !o bi$, s%"+ a$ a"!io$. esides e#e$ ass%mi$, !+a! i! is !+e Ci#il Code !+a! applies !o !+e !a$sa"!io$ A!i"le 4K( po#ides !+a! !+e wi&e may bi$, a$ a"!io$ &o a$$%lme$! o& sale o$ !+e ,o%$d o& la"2 o& spo%sal "o$se$! d%i$, !+e maia,e wi!+i$ 4) yeas &om !+e !a$sa"!io$. Co$seH%e$!ly !+e a"!io$ !+a! !+e Ro"as +e +eis bo%,+! i$ 4''K &ell wi!+i$ 4) yeas o& !+e a$%ay 44 4'0' sale. I! did $o! ye! pes"ibe. T+e F%e$!es spo%ses poi$! o%! !+a! i! was !o Rosaio w+ose "o$se$! was $o! ob!ai$ed !+a! !+e law ,a#e !+e i,+! !o bi$, a$ a"!io$ !o de"lae #oid +e +%sba$d?s sale o& "o$%,al la$d. %! +ee Rosaio died i$ 4'') !+e yea a&!e !+e sale. @oes !+is mea$ !+a! !+e i,+! !o +a#e !+e sale de"laed #oid is &oe#e los! T+e a$swe is $o. As s!a!ed abo#e !+a! sale was #oid &om !+e be,i$$i$,. Co$seH%e$!ly !+e la$d emai$ed !+e pope!y o& Ta"ia$o a$d Rosaio despi!e !+a! sale. W+e$ !+e !wo died !+ey passed o$ !+e ow$es+ip o& !+e pope!y !o !+ei +eis $amely !+e Ro"as. As law&%l ow$es !+e Ro"as +ad !+e i,+! %$de A!i"le <*' o& !+e Ci#il Code !o e9"l%de a$y peso$ &om i!s e$oyme$! a$d disposal. I$ &ai$ess !o !+e F%e$!es spo%ses +owe#e !+ey s+o%ld be e$!i!led amo$, o!+e !+i$,s !o e"o#e &om Ta"ia$o?s +eis !+e Ro"as !+e >*))))).)) !+a! !+ey paid +im wi!+ le,al i$!ees! %$!il &%lly paid "+a,eable a,ai$s! +is es!a!e. F%!+e !+e F%e$!es spo%ses appea !o +a#e a"!ed i$ ,ood &ai!+ i$ e$!ei$, !+e la$d a$d b%ildi$, impo#eme$!s o$ i!. A!!y. >la,a!a w+om !+e pa!ies m%!%ally e$!%s!ed wi!+ "losi$, a$d do"%me$!i$, !+e !a$sa"!io$ epese$!ed !+a! +e ,o! Rosaio?s si,$a!%e o$ !+e a&&ida#i! o& "o$se$!. T+e F%e$!es spo%ses +ad $o easo$ !o belie#e !+a! !+e lawye +ad #iola!ed +is "ommissio$ a$d +is oa!+. T+ey +ad $o way o& 2$owi$, !+a! Rosaio did $o! "ome !o amboa$,a !o ,i#e +e "o$se$!. T+ee is $o e#ide$"e !+a! !+ey +ad a pemo$i!io$ !+a! !+e eH%ieme$! o& "o$se$! pese$!ed some di&&i"%l!y. I$deed !+ey willi$,ly made a () pe"e$! dow$ payme$! o$ !+e selli$, pi"e mo$!+s ealie o$ !+e ass%a$"e !+a! i! was &o!+"omi$,. F%!+e !+e $o!ai-ed do"%me$! appeas !o +a#e "om&o!ed !+e F%e$!es spo%ses !+a! e#ey!+i$, was aleady i$ ode w+e$ Ta"ia$o e9e"%!ed a deed o& absol%!e sale i$ !+ei &a#o o$ a$%ay 44 4'0'. I$ &a"! !+ey paid !+e bala$"e d%e +im. A$d a"!i$, o$ !+e do"%me$!s s%bmi!!ed !o i! !+e Re,is!e o& @eeds o& amboa$,a Ci!y iss%ed a $ew !i!le i$ !+e $ames o& !+e F%e$!es spo%ses. I! was o$ly a&!e all !+ese +ad passed !+a! !+e spo%ses e$!eed !+e pope!y a$d b%il! o$ i!. 8e is deemed a possesso i$ ,ood &ai!+ said A!i"le 5* o& !+e Ci#il Code w+o is $o! awae !+a! !+ee e9is!s i$ +is !i!le o mode o& a"H%isi!io$ a$y &law w+i"+ i$#alida!es i!. As possesso i$ ,ood &ai!+ !+e F%e$!es spo%ses wee %$de $o
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Maia,e; "o$%,al pope!y. Mai!al "o$se$! is eH%ied &o !+e sale by a +%sba$d o& pope!y +e p%"+ased %$de a "o$di!io$al "o$!a"! !o sell e9e"%!ed w+ile +e was s!ill si$,le b%! !i!le o& w+i"+ was !a$s&eed w+e$ +e was aleady maied. Sps. Lita e Leon, et al. vs. Anita B. e Leon, et al., G.R. =o. 405)( %ly *( *))'. Co$%,al pa!$es+ip; e&&e"!s o& le,al sepaa!io$; &o&ei!%e o& s+ae i$ po&i!s. Amo$, !+e e&&e"!s o& !+e de"ee o& le,al sepaa!io$ is !+a! !+e "o$%,al pa!$es+ip is dissol#ed a$d liH%ida!ed a$d !+e o&&e$di$, spo%se wo%ld +a#e $o i,+! !o a$y s+ae o& !+e $e! po&i!s ea$ed by !+e "o$%,al pa!$es+ip. T+%s i! is o$ly !+e o&&e$di$, spo%se?s s+ae i$ !+e $e! po&i!s a$d $o! !+e s+ae i$ !+e pope!y w+i"+ is &o&ei!ed. A!i"le 4)*3<6 o& !+e Family Code po#ides !+a! /D&o p%poses o& "omp%!i$, !+e $e! po&i!s s%be"! !o &o&ei!%e i$ a""oda$"e wi!+ A!i"le <( =o. 3*6 a$d ( =o. 3*6 !+e said po&i!s s+all be !+e i$"ease i$ #al%e be!wee$ !+e ma2e! #al%e o& !+e "omm%$i!y pope!y a! !+e !ime o& !+e "eleba!io$ o& !+e maia,e a$d !+e ma2e! #al%e a! !+e !ime o& i!s dissol%!io$.7 /ario Siochi vs. Alfredo "o5on, et al.7Inter8i(ensional Realty, Inc. 0s. /ario Siochi, et al., ".R. #o.
$'--7".R. #o. $'--22, /arch $%, +$ Co$%,al pa!$es+ip; pes%mp!io$ o& "o$%,al $a!%e; $eed &o mai!al "o$se$!. T+e Ci#il Code o& !+e >+ilippi$es !+e law i$ &o"e a! !+e !ime o& !+e "eleba!io$ o& !+e maia,e be!wee$ Ma!+a a$d Ma$%el i$ 4'5K po#ides all pope!y o& !+e maia,e is pes%med !o belo$, !o !+e "o$%,al pa!$es+ip %$less i! be po#ed !+a! i! pe!ai$s e9"l%si#ely !o !+e +%sba$d o !o !+e wi&e. T+is i$"l%des pope!y w+i"+ is a"H%ied by o$eo%s !i!le d%i$, !+e maia,e a! !+e e9pe$se o& !+e "ommo$ &%$d w+e!+e !+e a"H%isi!io$ be &o !+e pa!$es+ip o &o o$ly o$e o& !+e spo%ses. T+e "o%! is $o! pes%aded by Ti!a$?s a,%me$!s !+a! !+e pope!y was Ma!+a?s e9"l%si#e pope!y be"a%se Ma$%el &ailed !o pese$! be&oe !+e RTC a$y poo& o& +is i$"ome i$ 4'K) +e$"e +e "o%ld $o! +a#e +ad !+e &i$a$"ial "apa"i!y !o "o$!ib%!e !o !+e p%"+ase o& !+e pope!y i$ 4'K); a$d !+a! Ma$%el admi!!ed !+a! i! was Ma!+a w+o "o$"l%ded !+e oi,i$al p%"+ase o& !+e pope!y. I$ "o$so$a$"e wi!+ i!s %li$, i$ Spouses !astro v. /iat, Ma$%el was $o! eH%ied !o po#e !+a! !+e pope!y was a"H%ied wi!+ &%$ds o& !+e pa!$es+ip. Ra!+e !+e pes%mp!io$ applies e#e$ w+e$ !+e ma$$e i$ w+i"+ !+e pope!y was a"H%ied does $o! appea. 8ee we &i$d !+a! Ti!a$ &ailed !o o#e!%$ !+e pes%mp!io$ !+a! !+e pope!y p%"+ased d%i$, !+e spo%ses? maia,e was pa! o& !+e "o$%,al pa!$es+ip. Si$"e !+e pope!y was %$do%b!edly pa! o& !+e "o$%,al pa!$es+ip !+e sale !o Ti!a$ eH%ied !+e "o$se$! o& bo!+ spo%ses. A!i"le 45 o& !+e Ci#il Code e9pessly po#ides !+a! /!+e +%sba$d is !+e admi$is!a!o o& !+e "o$%,al pa!$es+ip7. Li2ewise A!i"le 4K* o& !+e Ci#il Code odai$s !+a! /3!6+e wi&e "a$$o! bi$d !+e "o$%,al pa!$es+ip wi!+o%! !+e +%sba$d?s "o$se$! e9"ep! i$ "ases po#ided by law7. itan !onstruction !orporation 0s. /anuel A. avid, Sr. and /artha S. avid,
".R. #o. $'-&*%, /arch $&, +$. Co$%,al pa!$es+ip; sole admi$is!a!io$. I$ !+is "ase Al&edo was !+e sole admi$is!a!o o& !+e pope!y be"a%se El#ia wi!+ w+om Al&edo was sepaa!ed i$ &a"! was %$able !o pa!i"ipa!e i$ !+e admi$is!a!io$ o& !+e "o$%,al pope!y. 8owe#e as sole admi$is!a!o o& !+e pope!y Al&edo s!ill "a$$o! sell !+e pope!y wi!+o%! !+e wi!!e$ "o$se$! o& El#ia o !+e a%!+oi!y o& !+e "o%!. Wi!+o%! s%"+ "o$se$! o a%!+oi!y !+e sale is #oid. T+e abse$"e o& !+e "o$se$! o& o$e o& !+e spo%se e$des !+e e$!ie sale #oid i$"l%di$, !+e po!io$ o& !+e "o$%,al pope!y pe!ai$i$, !o !+e spo%se w+o "o$!a"!ed !+e sale. E#e$ i& !+e o!+e spo%se a"!i#ely pa!i"ipa!ed i$ $e,o!ia!i$, &o !+e sale o& !+e pope!y !+a! o!+e spo%se?s wi!!e$ "o$se$! !o !+e sale is s!ill eH%ied by law &o i!s #alidi!y. T+e A,eeme$! e$!eed i$!o by Al&edo a$d Maio was wi!+o%! !+e wi!!e$ "o$se$! o& El#ia. T+%s !+e A,eeme$! is e$!iely #oid. As e,ads Maio?s "o$!e$!io$ !+a! !+e A,eeme$! is a "o$!i$%i$, o&&e w+i"+ may be pe&e"!ed by El#ia?s a""ep!a$"e be&oe !+e o&&e is wi!+daw$ !+e &a"! !+a! !+e pope!y was s%bseH%e$!ly do$a!ed by Al&edo !o Wi$i&ed a$d !+e$ sold !o I@RI "lealy i$di"a!es !+a! !+e o&&e was aleady wi!+daw$. /ario Siochi vs. Alfredo "o5on, et al.7Inter8i(ensional Realty, Inc. 0s. /ario Siochi, et al., ".R. #o. $'--7".R. #o. $'--22, /arch $%, +$ Maia,e; disposi!io$ o& "o$%,al pope!y. T+e +%sba$d?s &is! a"! o& disposi!io$ o& !+e s%be"! pope!y o""%ed i$ 4'( w+e$ +e e9e"%!ed !+e S>A a$d !+e @eed o& Ta$s&e o& Ri,+!s i$ &a#o o& @oloes Camis%a. T+%s !+e i,+! o& a"!io$ o& !+e pe!i!io$es a""%ed i$ 4'( as A!i"le 4K( o& !+e Ci#il Code po#ides !+a! !+e wi&e may &ile &o a$$%lme$! o& a "o$!a"! e$!eed i$!o by !+e +%sba$d wi!+o%! +e "o$se$! wi!+i$ !e$ 34)6 yeas &om !+e !a$sa"!io$ H%es!io$ed. >e!i!io$es &iled !+e a"!io$ &o e"o$#eya$"e i$ 4''5. E#e$ i& we wee !o "o$side !+a! !+ei i,+! o& a"!io$ aose w+e$ !+ey lea$ed o& !+e "a$"ella!io$ o& TCT =o. 4)K5(< a$d !+e iss%a$"e o& TCT =o. *')4*4 i$ Mela$ie Mi$,oa?s $ame i$ 4''( s!ill !wel#e 34*6 yeas +a#e lapsed si$"e s%"+ dis"o#ey a$d !+ey &iled !+e pe!i!io$ beyo$d !+e peiod allowed by law. Moeo#e w+e$ Se,ia 8e$a$de- !o,e!+e wi!+ +e "+ilde$ &iled !+e a"!io$ &o e"o$#eya$"e !+e "o$%,al pa!$es+ip o& pope!y wi!+ 8e$a$de- S. +ad aleady bee$ !emi$a!ed by #i!%e o& !+e la!!e?s dea!+ o$ Apil 4 4'0(. Clealy !+ee&oe pe!i!io$es? a"!io$ +as pes"ibed. T+e &ail%e o& Se,ia 8e$a$de- !o &ile wi!+ !+e "o%!s a$ a"!io$ &o a$$%lme$! o& !+e "o$!a"! d%i$, !+e maia,e a$d wi!+i$ !e$ 34)6 yeas &om !+e !a$sa"!io$ $e"essaily baed +e &om H%es!io$i$, !+e sale o& !+e s%be"! pope!y !o !+id peso$s.
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"ase does $o! s+ow a$y poo& !+a! Na,o E$!epises a$d !+e pope!ies o "o$!a"!s i$ i!s $ame ae "o$%,al. I& a! all o$ly !+e bae alle,a!io$ o& =a#ao !o !+is e&&e"! e9is!s i$ !+e e"ods o& !+e "ase. T+%s &o p%poses solely o& !+is "ase a$d o& esol#i$, !+e iss%e o& w+e!+e Na,o E$!epises as a sole popie!os+ip is "o$%,al o paap+e$al pope!y we +old !+a! i! is "o$%,al pope!y. Roger 0. #avarro 0s. 9on. ;ose L. ?sco)ido, Presiding ;udge, R!, Branch <2, !agayan de 3ro !ity, and aren . "o, doing )usiness under the na(e argo ?nterprises, ".R. #o. $&<2%%, #ove()er +2, +-. Maia,e; "o$%,al pope!y. A!il"e 4*< od !+e Family Code by i!s !ems allows ei!+e Nae$ o Gle$$ Go !o spea2 a$d a"! wi!+ a%!+oi!y i$ ma$a,i$, !+ei "o$%,al pope!y i.e. Na,o E$!epises. =o $eed e9is!s !+ee&oe &o o$e !o ob!ai$ !+e "o$se$! o& !+e o!+e be&oe pe&omi$, a$ a"! o& admi$is!a!io$ o a$y a"! !+a! does $o! dispose o& o e$"%mbe !+ei "o$%,al pope!y. U$de A!i"le 4)0 o& !+e Family Code !+e "o$%,al pa!$es+ip is ,o#e$ed by !+e %les o$ !+e "o$!a"! o& pa!$es+ip i$ all !+a! is $o! i$ "o$&li"! wi!+ w+a! is e9pessly de!emi$ed i$ !+is C+ap!e o by !+e spo%ses i$ !+ei maia,e se!!leme$!s. I$ o!+e wods !+e pope!y ela!io$s o& !+e +%sba$d a$d wi&e s+all be ,o#e$ed pimaily by C+ap!e < o$ Co$%,al >a!$es+ip o& Gai$s o& !+e Family Code a$d s%pple!oily by !+e spo%ses? maia,e se!!leme$! a$d by !+e %les o$ pa!$es+ip %$de !+e Ci#il Code. I$ !+e abse$"e o& a$y e#ide$"e o& a maia,e se!!leme$! be!wee$ !+e spo%ses Go we loo2 a! !+e Ci#il Code po#isio$ o$ pa!$es+ip &o ,%ida$"e. U$de A!i"le 4404 o& !+e Ci#il Code Gle$$ a$d Nae$ Go ae e&&e"!i#ely "oBow$es o& Na,o E$!epises a$d !+e pope!ies e,is!eed %$de !+is $ame; +e$"e bo!+ +a#e a$ eH%al i,+! !o see2 possessio$ o& !+ese pope!ies. Applyi$, A!i"le <0< o& !+e Ci#il Code w+i"+ s!a!es !+a! /i$ de&a%l! o& "o$!a"!s o spe"ial po#isio$s "oBow$es+ip s+all be ,o#e$ed by !+e po#isio$s o& !+is Ti!le7 we &i$d &%!+e s%ppo! i$ A!i"le <0K o& !+e Ci#il Code !+a! allows a$y o& !+e "oBow$es !o bi$, a$ a"!io$ i$ ee"!me$! wi!+ espe"! !o !+e "oBow$ed pope!y. Roger 0. #avarro 0s. 9on. ;ose L. ?sco)ido, Presiding ;udge, R!, Branch <2, !agayan de 3ro !ity, and aren . "o, doing )usiness under the na(e argo ?nterprises, ".R. #o. $&<2%%, #ove()er +2, +-. >eso$s; "o$%,al pope!y. A!i"le 4) o& !+e =ew Ci#il Code po#ides /All pope!y o& !+e maia,e is pes%med !o belo$, !o !+e "o$%,al pa!$es+ip %$less i! be po#ed !+a! i! pe!ai$s e9"l%si#ely !o !+e +%sba$d o !o !+e wi&e.7 T+ee is $o iss%e wi!+ e,ad !o !+e lo! "o#eed by TCT =o. TB*edo +a#i$, bee$ a"H%ied by +im be&oe +is maia,e !o May A$$. 8owe#e !+e lo! "o#eed byTCT =o. TB00K< was a"H%ied i$ 4'0* d%i$, !+e maia,e o& >edo a$d May A$$. =o e#ide$"e was add%"ed !o s+ow !+a! !+e s%be"! pope!y was a"H%ied !+o%,+ e9"+a$,e o ba!e. T+e pes%mp!io$ o& !+e "o$%,al $a!%e o& !+e pope!y s%bsis!s i$ !+e abse$"e o& "lea sa!is&a"!oy a$d "o$#i$"i$, e#ide$"e !o o#e"ome said pes%mp!io$ o !o po#e !+a! !+e s%be"! pope!y is e9"l%si#ely ow$ed by >edo. >e!i!io$es? bae asse!io$ wo%ld $o! s%&&i"e !o o#e"ome !+e pes%mp!io$ !+a!TCT =o. TB00K< a"H%ied d%i$, !+e maia,e o& >edo a$d May A$$ is "o$%,al. Li2ewise !+e +o%se b%il! !+eeo$ is "o$%,al pope!y +a#i$, bee$ "o$s!%"!ed !+o%,+ !+e oi$! e&&o!s o& !+e spo%ses w+o +ad e#e$ ob!ai$ed a loa$ &om@> !o "o$s!%"! !+e +o%se. Si,$i&i"a$!ly a sale o e$"%mba$"e o& "o$%,al pope!y "o$"l%ded a&!e !+e e&&e"!i#i!y o& !+e Family Code o$ A%,%s! ( 4'00 is ,o#e$ed by A!i"le 4*< o& !+e same Code !+a! $ow !ea!s s%"+ a disposi!io$ !o be #oid i& do$e 3a6 wi!+o%! !+e "o$se$! o& bo!+ !+e +%sba$d a$d !+e wi&e o 3b6 i$ "ase o& o$e spo%se?s i$abili!y !+e a%!+oi!y o& !+e "o%!. Patronica Ravina and ilfredo Ravina Vs. /ary Ann P. 0illa A)rille, for )ehalf of Ingrid 1Lyn P. 0illa A)rille, et al., ".R. #o. $'2%, 3cto)er $', +-. Maia,e; "o$%,al pope!y. T+e e,is!a!io$ o& !+e !ade $ame i$ !+e $ame o& o$e peso$ 1 a woma$ 1 does $o! $e"essaily lead !o !+e "o$"l%sio$ !+a!!+e !+emaia,e !ade $ame as a pope!y is +es appeas alo$e pa!i"%laly w+e$ !+e"o$!a"!ed woma$ is maied. y law all pope!y a"H%ied d%i$, w+e!+e !+e a"H%isi!io$ !o +a#e bee$ made o e,is!eed i$ !+e $ame o& o$e o bo!+ spo%ses is pes%med !o be "o$%,al %$less !+e "o$!ay is po#ed. O% e9ami$a!io$ o& !+e e"ods o& !+e "ase does $o! s+ow a$y poo& !+a! Na,o E$!epises a$d !+e pope!ies o "o$!a"!s i$ i!s $ame ae "o$%,al. I& a! all o$ly !+e bae alle,a!io$ o& =a#ao !o !+is e&&e"! e9is!s i$ !+e e"ods o& !+e "ase. T+%s &o p%poses solely o& !+is "ase a$d o& esol#i$, !+e iss%e o& w+e!+e Na,o E$!epises as a sole popie!os+ip is "o$%,al o paap+e$al pope!y we +old !+a! i! is "o$%,al pope!y. Roger 0. #avarro 0s. 9on. ;ose L. ?sco)ido, Presiding ;udge, R!, Branch <2, !agayan de 3ro !ity, and aren . "o, doing )usiness under the na(e argo ?nterprises, ".R. #o. $&<2%%, #ove()er +2, +-.
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U$de A!i"le 4)0 o& !+e Family Code !+e "o$%,al pa!$es+ip is ,o#e$ed by !+e %les o$ !+e "o$!a"! o& pa!$es+ip i$ all !+a! is $o! i$ "o$&li"! wi!+ w+a! is e9pessly de!emi$ed i$ !+is C+ap!e o by !+e spo%ses i$ !+ei maia,e se!!leme$!s. I$ o!+e wods !+e pope!y ela!io$s o& !+e +%sba$d a$d wi&e s+all be ,o#e$ed pimaily by C+ap!e < o$ Co$%,al >a!$es+ip o& Gai$s o& !+e Family Code a$d s%pple!oily by !+e spo%ses? maia,e se!!leme$! a$d by !+e %les o$ pa!$es+ip %$de !+e Ci#il Code. I$ !+e abse$"e o& a$y e#ide$"e o& a maia,e se!!leme$! be!wee$ !+e spo%ses Go we loo2 a! !+e Ci#il Code po#isio$ o$ pa!$es+ip &o ,%ida$"e. U$de A!i"le 4404 o& !+e Ci#il Code Gle$$ a$d Nae$ Go ae e&&e"!i#ely "oBow$es o& Na,o E$!epises a$d !+e pope!ies e,is!eed %$de !+is $ame; +e$"e bo!+ +a#e a$ eH%al i,+! !o see2 possessio$ o& !+ese pope!ies. Applyi$, A!i"le <0< o& !+e Ci#il Code w+i"+ s!a!es !+a! /i$ de&a%l! o& "o$!a"!s o spe"ial po#isio$s "oBow$es+ip s+all be ,o#e$ed by !+e po#isio$s o& !+is Ti!le7 we &i$d &%!+e s%ppo! i$ A!i"le <0K o& !+e Ci#il Code !+a! allows a$y o& !+e "oBow$es !o bi$, a$ a"!io$ i$ ee"!me$! espe"! !odoing !+e "oBow$ed pope!y. #avarro 0s. 9on. L. ?sco)ido, Presiding de 3ro !ity,wi!+ and aren . "o, )usiness under the na(eRoger argo0.?nterprises, ".R. #o.;ose $&<2%%, #ove()er +2, +-.;udge, R!, Branch <2, !agayan FAMILY 8OME Family Code; &amily +ome; e9emp!io$ &om &oe"los%e. We $o!e !+a! !+e "laim o& e9emp!io$ %$de A!i"le 45( o& !+e Family Code !+eeby aisi$, iss%e o$ !+e mo!,a,ed "o$domi$i%m %$i! bei$, a &amily +ome a$d $o! "opoa!e pope!y is e$!iely i$"o$sis!e$! wi!+ !+e "lea "o$!a"!%al a,eeme$! o& !+e REM. Ass%mi$, arguendo !+a! !+e mo!,a,ed "o$domi$i%m %$i! "o$s!i!%!es espo$de$!s? &amily +ome !+e same will $o! e9emp! i! &om &oe"los%e as A!i"le 455 3(6 o& !+e same Code allows !+e e9e"%!io$ o &o"ed sale o& a &amily +ome /&o deb!s se"%ed by mo!,a,es o$ !+e pemises be&oe o a&!e s%"+ "o$s!i!%!io$.7 ?quita)le P!I Bank, Inc. vs. 3;8/ark rading, Inc. and Spouses 3scar and ?vangeline /artine5, ".R. #o. $'&-&, August $$, +$. Family +ome; +ow !o "o$s!i!%!e; le#y a$d e9e"%!io$. T+e ,e$eal %le is !+a! !+e &amily +ome is a eal i,+! w+i"+ is ,a!%i!o%s i$alie$able a$d &ee &om a!!a"+me$! "o$s!i!%!ed o#e !+e dwelli$, pla"e a$d !+e la$d o$ w+i"+ i! is si!%a!ed w+i"+ "o$&es %po$ a pa!i"%la &amily !+e i,+! !o e$oy s%"+ pope!ies w+i"+ m%s! emai$ wi!+ !+e peso$ "o$s!i!%!i$, i! a$d +is +eis. I! "a$$o! be sei-ed by "edi!os e9"ep! i$ "e!ai$ spe"ial "ases. T+e "ase o& elley, ;r. v. Planters Products, Inc. lays dow$ !+e %les ela!i#e !o !+e le#y o$ e9e"%!io$ o#e !+e &amily +ome vi5: 3i6 a &amily +ome is ,e$eally e9emp! &om e9e"%!io$ po#ided i! was d%ly "o$s!i!%!ed as s%"+; 3ii6 !+ee m%s! be poo& !+a! !+e alle,ed &amily +ome was "o$s!i!%!ed oi$!ly by !+e +%sba$d a$d wi&e o by a$ %$maied +ead o& a &amily; 3iii6 i! m%s! be !+e +o%se w+ee !+ey a$d !+ei &amily a"!%ally eside a$d !+e lo! o$ w+i"+ i! is si!%a!ed 3i#6 !+e &amily +ome m%s! be pa! o& !+e pope!ies o& !+e absol%!e "omm%$i!y o !+e "o$%,al pa!$es+ip o o& !+e e9"l%si#e pope!ies o& ei!+e spo%se wi!+ !+e la!!e?s "o$se$! o o$ !+e pope!y o& !+e %$maied +ead o& !+e &amily; a$d 3#6 !+e a"!%al #al%e o& !+e &amily +ome s+all $o! e9"eed a! !+e !ime o& i!s "o$s!i!%!io$ !+e amo%$! o& >())))) i$ %ba$ aeas a$d >*))))) i$ %al aeas. Wi!+ e,ad !o !+e $eed &o "o$s!i!%!i$, a eside$"e as a &amily +ome i$ ode &o !+e pope!y !o be e9emp! &om e9e"%!io$ dis!i$"!io$ m%s! be made as !o w+a! law applies based o$ @hen i! was "o$s!i!%!ed a$d w+a! eH%ieme$!s m%s! be "omplied wi!+ by !+e %d,me$! deb!o o +is s%""essos "laimi$, s%"+ pi#ile,e. 8e$"e !wo se!s o& %les ae appli"able. I& !+e &amily +ome was "o$s!%"!ed )efore !+e e&&e"!i#i!y o& !+e Family Code o be&oe A%,%s! ( 4'00 !+e$ i! m%s! +a#e bee$ "o$s!i!%!ed ei!+e %di"ially o e9!aB%di"ially as po#ided %$de A!i"les **5 **'B*(4 a$d *(( o& !+e Ci#il Code. %di"ial "o$s!i!%!io$ o& !+e &amily +ome eH%ies !+e &ili$, o& a #ei&ied pe!i!io$ be&oe !+e "o%!s a$d !+e e,is!a!io$ o& !+e "o%!?s ode wi!+ !+e Re,is!y o& @eeds o& !+e aea w+ee !+e pope!y is lo"a!ed. Mea$w+ile e9!a%di"ial "o$s!i!%!io$ is ,o#e$ed by A!i"les *<* o& !+e Ci#il !o Code a$d i$#ol#es !+e e9e"%!io$ o& a!wo p%bli" i$s!%me$! w+i"+ m%s! e,is!eeddeb!o wi!+ !+e Re,is!y*<) o& !o >ope!y. Fail%e "omply wi!+ ei!+e o$e o& !+ese modes o& "o$s!i!%!io$ will also ba abe%d,me$! &om a#aili$, o& !+e pi#ile,e. O$ !+e o!+e +a$d &o &amily +omes "o$s!%"!ed after !+e e&&e"!i#i!y o& !+e Family Code o$ A%,%s! ( 4'00 !+ee is $o $eed !o "o$s!i!%!e e9!a%di"ially o %di"ially. All &amily +omes "o$s!%"!ed a&!e !+e e&&e"!i#i!y o& !+e Family Code 3A%,%s! ( 4'006 ae "o$s!i!%!ed as s%"+ by opea!io$ o& law. All e9is!i$, &amily eside$"es as o& A%,%s! ( 4'00 ae "o$sideed &amily +omes a$d ae pospe"!i#ely e$!i!led !o !+e be$e&i!s a""oded !o a &amily +ome %$de !+e Family Code. T+e e9emp!io$ is e&&e"!i#e &om !+e !ime i! was "o$s!i!%!ed a$d las!s as lo$, as a$y o& i!s be$e&i"iaies %$de A!i"le 45< a"!%ally esides !+eei$. Moeo#e !+e &amily +ome s+o%ld belo$, !o !+e absol%!e "omm%$i!y o "o$%,al pa!$es+ip o i& e9"l%si#ely by o$e spo%se i!s "o$s!i!%!io$
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I$ !+e pese$! "ase si$"e pe!i!io$es "laim !+a! !+e &amily +ome was "o$s!i!%!ed prior !o A%,%s! ( 4'00 o as ealy as 4'<< !+ey m%s! "omply wi!+ !+e po"ed%e ma$da!ed by !+e Ci#il Code. T+ee bei$, absol%!ely $o poo& !+a! !+e >a$da"a$ pope!y was %di"ially o e9!aB%di"ially "o$s!i!%!ed as !+e Ramos? &amily +ome !+e law?s po!e"!i#e ma$!le "a$$o! be a#ailed o& by pe!i!io$es. >ae$!+e!i"ally !+e e"ods s+ow !+a! !+e s+ei&& e9+a%s!ed all mea$s !o e9e"%!e !+e %d,me$! b%! &ailed be"a%se Ramos? ba$2 a""o%$!s wee aleady "losed w+ile o!+e pope!ies i$ +is o !+e "ompa$y?s $ame +ad aleady bee$ !a$s&eed a$d !+e o$ly pope!y le&! was !+e >a$da"a$ pope!y. ;uanita rinidad Ra(os, et al. vs. anilo Pangilinan et al., ".R. #o. $%&-+, ;uly +, +$. Family +ome. A &amily +ome is ,e$eally e9emp! &om e9e"%!io$ po#ided i! was d%ly "o$s!i!%!ed as s%"+. I! is li2ewise a ,i#e$ !+a! !+e &amily +ome m%s! be "o$s!i!%!ed o$ pope!y ow$ed by !+e peso$s "o$s!i!%!i$, i!. As poi$!ed o%! i$ Nelley . #. >la$!es >od%"!s I$".: 7DT+e &amily +ome m%s! be pa! o& !+e pope!ies o& !+e absol%!e "omm%$i!y o !+e "o$%,al pa!$es+ip o o& !+e e9"l%si#e pope!ies o& ei!+e spo%se wi!+ !+e la!!e?s "o$se$! o o$ !+e pope!y o& !+e %$maied +ead o& !+e &amily.7 I$ o!+e wods !+e &amily +ome m%s! be es!ablis+ed o$ !+e pope!ies o& 3a6 !+e absol%!e "omm%$i!y o 3b6 !+e "o$%,al pa!$es+ip o 3"6 !+e e9"l%si#e pope!y o& ei!+e spo%se wi!+ !+e "o$se$! o& !+e o!+e. I! "a$$o! be es!ablis+ed o$ pope!y +eld i$ "oBow$es+ip wi!+ !+id peso$s. 8owe#e i! "a$ be es!ablis+ed pa!ly o$ "omm%$i!y pope!y o "o$%,al pope!y a$d pa!ly o$ !+e e9"l%si#e pope!y o& ei!+e spo%se wi!+ !+e "o$se$! o& !+e la!!e. I& "o$s!i!%!ed by a$ %$maied +ead o& a &amily w+ee !+ee is $o "omm%$al o "o$%,al pope!y e9is!i$, i! "a$ be "o$s!i!%!ed o$ly o$ +is o +e ow$ pope!y. T+eei$ lies !+e &a!al &law i$ !+e pos!%la!e o& pe!i!io$es. Fo all !+ei a,%me$!s !o !+e "o$!ay !+e s!a2 a$d imm%!able &a"! is !+a! !+e pope!y o$ w+i"+ !+ei alle,ed &amily +ome s!a$ds is ow$ed by espo$de$!s a$d !+e H%es!io$ o& ow$es+ip +ad bee$ lo$, laid !o es! wi!+ !+e &i$ali!y o& !+e appella!e "o%!?s %d,me$! i$ CABG.R. C =o. 55*)K. T+%s pe!i!io$es? "o$!i$%ed s!ay o$ !+e s%be"! la$d is o$ly by mee !olea$"e o& espo$de$!s. Si(eon !a)ang, et al. vs. /r. /rs. "uiller(o Basay G.R. =o. 40)50K Ma"+ *) *))'. >ATER=ITY A=@ FILIATIO= Filia!io$; "a$$o! be "olla!eally a!!a"2ed. I! is se!!led law !+a! &ilia!io$ "a$$o! be "olla!eally a!!a"2ed. WellB2$ow$ civilista @. A!%o M. Tole$!i$o i$ +is boo2 /Ci#il Code o& !+e >+ilippi$es Comme$!aies a$d %isp%de$"e7 $o!ed !+a! !+e a&oe"i!ed do"!i$e is oo!ed &om !+e po#isio$s o& !+e Ci#il Code o& !+e >+ilippi$es. 8e e9plai$ed !+%s: T+e le,i!ima"y o& !+e "+ild "a$$o! be "o$!es!ed by way o& de&e$se o as a "olla!eal iss%e i$ a$o!+e a"!io$ &o a di&&ee$! p%pose. T+e $e"essi!y o& a$ i$depe$de$! a"!io$ die"!ly imp%,$i$, !+e le,i!ima"y is moe "lealy e9pessed i$ !+e Me9i"a$ "ode 3a!i"le ((56 w+i"+ po#ides: /T+e "o$!es! o& !+e le,i!ima"y o& a "+ild by !+e +%sba$d o +is +eis m%s! be made by pope "omplai$! be&oe !+e "ompe!e$! "o%!; a$y "o$!es! made i$ a$y o!+e way is #oid.7 T+is pi$"iple applies %$de o% Family Code. A!i"les 4K) a$d 4K4 o& !+e "ode "o$&im !+is #iew be"a%se !+ey e&e !o /!+e a"!io$ !o imp%,$ !+e le,i!ima"y.7 T+is a"!io$ "a$ be bo%,+! o$ly by !+e +%sba$d o +is +eis a$d wi!+i$ !+e peiods &i9ed i$ !+e pese$! a!i"les. ?ugenio R. Reyes, oined )y i(othy ;oseph /. Reyes, et al. vs. Li)rada . /aurico and Leonida . /auricio, ".R. #o. $2&%, #ove()er +*, +$ Family ela!io$s; "+ild s%ppo!; &ilia!io$. A+be$"el?s dema$d &o s%ppo! bei$, based o$ +e "laim o& &ilia!io$ !o pe!i!io$e as +is ille,i!ima!e da%,+!e &alls %$de A!i"le 4'53<6. As s%"+ +e e$!i!leme$! !o s%ppo! &om pe!i!io$e is depe$de$! o$ !+e de!emi$a!io$ o& +e &ilia!io$. I$ !+e pese$! "ase A+be$"el elies i$ !+e mai$ o$ !+e +a$dwi!!e$ $o!e e9e"%!ed by pe!i!io$e w+i"+ eads: /I e$B8% C. =epom%"e$o +eeby %$de!a2e !o ,i#e a$d po#ide &i$a$"ial s%ppo! i$ !+e amo%$! o& >45)).)) e#ey &i&!ee$ a$d !+i!ie!+ day o& ea"+ mo$!+ &o a !o!al o& >())).)) a mo$!+ s!a!i$, A%,. 45 4''' !o A+be$"el A$$ Lope- pese$!ly i$ !+e "%s!ody o& +e mo!+e Aa"eli Lope- wi!+o%! !+e $e"essi!y o& dema$d s%be"! !o ad%s!me$! la!e depe$di$, o$ !+e $eeds o& !+e "+ild a$d my i$"ome.7 T+e $o!e does $o! "o$!ai$ a$y s!a!eme$! w+a!soe#e abo%! A+be$"el?s &ilia!io$ !o pe!i!io$e. I! is !+ee&oe $o! wi!+i$ !+e ambi! o& A!i"le 4K*3*6 4K5 o& !+e Family vis8J8vis Code w+i"+ admi!s as "ompe!e$! e#ide$"e o& ille,i!ima!e &ilia!io$ a$ admissio$ o& &ilia!io$ i$ A!i"le a pi#a!e +a$dwi!!e$ i$s!%me$! si,$ed by !+e pae$! "o$"e$ed. T+e $o!e "a$$o! also be a""oded !+e same wei,+! as !+e $o!aial a,eeme$! !o s%ppo! !+e "+ild e&eed !o i$ 9errera. Fo i! is $o! e#e$ $o!ai-ed. A$d 9errera i$s!%"!s !+a! !+e $o!aial a,eeme$! m%s! be a""ompa$ied by !+e p%!a!i#e &a!+e?s admissio$ o& &ilia!io$ !o be a$ a""ep!able e#ide$"e o& &ilia!io$. 8ee +owe#e $o! o$ly +as pe!i!io$e $o! admi!!ed &ilia!io$ !+o%,+ "o$!empoa$eo%s a"!io$s. 8e +as "o$sis!e$!ly de$ied i!. T+e o$ly o!+e do"%me$!ay e#ide$"e s%bmi!!ed by A+be$"el a "opy o& +e Ce!i&i"a!e o& i!+ +as $o poba!i#e #al%e !o es!ablis+ &ilia!io$ !o pe!i!io$e !+e la!!e $o! +a#i$, si,$ed !+e same. A! bo!!om all !+a! A+be$"el eally +as is pe!i!io$e?s +a$dwi!!e$ %$de!a2i$, !o po#ide &i$a$"ial s%ppo! !o +e w+i"+ wi!+o%! moe &ails !o es!ablis+ +e "laim o& &ilia!io$. T+e Co%! is mi$d&%l !+a! !+e bes! i$!ees!s o& !+e "+ild i$ "ases i$#ol#i$, pa!e$i!y a$d &ilia!io$ s+o%ld be ad#a$"ed. I! is
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o !+e la"2 o& !+e same is a ela!io$s+ip !+a! m%s! be %di"ially es!ablis+ed a$d i! is &o !+e "o%! !o de"lae i!s e9is!e$"e o abse$"e. I! "a$$o! be le&! !o !+e will o a,eeme$! o& !+e pa!ies. ei$, "o$!ay !o law a$d p%bli" poli"y !+e Compomise A,eeme$! da!ed 40 Feb%ay *))) be!wee$ pe!i!io$e a$d espo$de$! is #oid ab i$i!io a$d #es!s $o i,+!s a$d "ea!es $o obli,a!io$s. I! pod%"es $o le,al e&&e"! a! all. T+e #oid a,eeme$! "a$$o! be e$deed opea!i#e e#e$ by !+e pa!ies? alle,ed pe&oma$"e 3pa!ial o &%ll6 o& !+ei espe"!i#e pes!a!io$s. ;oanie Surposa 4y vs. ;ose #go !hua, ".R. #o. $%<-'&, Septe()er $%, +-. SU>>ORT >eso$s; s%ppo!. >e!i!io$es? pa!ial "o$"%e$! obli,a!io$ e9!e$ds o$ly !o !+ei des"e$da$!s as !+is wod is "ommo$ly %$des!ood !o e&e !o ela!i#es by blood o& lowe de,ee. As pe!i!io$es? ,a$d"+ilde$ by blood o$ly espo$de$!s Les!e Edwad Ca$di"e Ga"e a$d Maia$o III belo$, !o !+is "a!e,oy. I$deed C+eyl?s i,+! !o e"ei#e s%ppo! &om !+eLim &amily e9!e$ds o$ly !o +e +%sba$d Edwad aisi$, &om !+ei mai!al bo$d. Spouses Prudencio and ilo(ena Li( vs. /a. !heryl S. Li(, for herself and on )ehalf of her (inor children Lester ?d@ard S. Li(, !andice "race S. Li(, and /ariano S. Li(, III, ".R. #o. $'<+-, 3cto)er <, +-. >ARE=TAL AUT8ORITY A=@ CUSTO@Y >ope!y; abili!y o& mo!+e !o dispose o& pope!y o& mi$o "+ilde$. T+e mi$o "+ilde$ o& Co$ado i$+ei!ed by epese$!a!io$ i$ !+e pope!ies o& !+ei ,a$dpae$!s Remi,ia a$d a$%aio. T+ese "+ilde$ $o! !+ei mo!+e i"!oi$a wee !+e "oBow$es o& !+e i$+ei!ed pope!ies. i"!oi$a +ad $o a%!+oi!y o +ad a"!ed beyo$d +e powes i$ "o$#eyi$, i& s+e did i$deed "o$#ey !o !+e pe!i!io$e?s mo!+e !+e %$di#ided s+ae o& +e mi$o "+ilde$ i$ !+e pope!y i$#ol#ed i$ !+is "ase. /T+e powes ,i#e$ !o +e by !+e laws as !+e $a!%al ,%adia$ "o#es o$ly ma!!es o& admi$is!a!io$ a$d "a$$o! i$"l%de !+e powe o& disposi!io$. S+e s+o%ld +a#e &is! se"%ed !+e pemissio$ o& !+e "o%! be&oe s+e alie$a!ed !+a! po!io$ o& !+e pope!y i$ H%es!io$ belo$,i$, !o +e mi$o "+ilde$.7 I$ a $%mbe o& "ases w+ee !+e ,%adia$s mo!+es o ,a$dmo!+es did $o! see2 "o%! appo#al o& !+e sale o& pope!ies o& !+ei wads mi$o "+ilde$ !+e Co%! de"laed !+e sales #oid. A(elia B. 9e)ron vs. ranco L. Loyola, et al., ".R. #o. $'%-', ;uly &, +$. Family Code; "+ild "%s!ody; appli"a!io$ o& A!i"le *4( o$ all "%s!ody a,eeme$!s. I! will $o! do !o a,%e !+a! !+e se"o$d paa,ap+ o& A!i"le *4( o& !+e Family Code applies o$ly !o %di"ial "%s!odial a,eeme$!s based o$ i!s !e9! !+a! /=o "+ild %$de se#e$ yeas o& a,e s+all be sepaa!ed &om !+e mo!+e %$less !+e "o%! &i$ds "ompelli$, easo$s !o ode o!+ewise.7 To limi! !+is po#isio$?s e$&o"eabili!y !o "o%! sa$"!io$ed a,eeme$!s w+ile pla"i$, pi#a!e a,eeme$!s beyo$d i!s ea"+ is !o sa$"!io$ a do%ble s!a$dad i$ "%s!ody e,%la!io$ o& "+ilde$ %$de se#e$ yeas old o& sepaa!ed pae$!s. T+is e&&e"!i#ely empowes sepaa!ed pae$!s by !+e simple e9pedie$! o& a#oidi$, !+e "o%!s !o s%b#e! a le,isla!i#e poli"y #es!i$, !o !+e sepaa!ed mo!+e sole "%s!ody o& +e "+ilde$ %$de se#e$ yeas o& a,e /!o a#oid a !a,edy w+ee a mo!+e +as see$ +e baby !o$ away &om +e.7 T+is i,$oes !+e le,isla!i#e basis !+a! /D$o ma$ "a$ so%$d !+e deep soows o& a mo!+e w+o is depi#ed o& +e "+ild o& !e$de a,e.7 9erald Black acasin vs. Sharon el /undo acasin, ".R. #o. $'%2%&, e)ruary &, +$. Family ela!io$s; "+ild "%s!ody; a,eeme$!s be!wee$ sepaa!ed pae$!s. A! !+e !ime !+e pa!ies e9e"%!ed !+e A,eeme$! o$ *0 a$%ay *))* !wo &a"!s ae %$disp%!ed: 346 S!ep+a$ie was %$de se#e$ yeas old; a$d 3*6 pe!i!io$e a$d espo$de$! wee $o lo$,e maied %$de !+e laws o& !+e U$i!ed S!a!es be"a%se o& !+e di#o"e de"ee. T+e ele#a$! >+ilippi$e law o$ "+ild "%s!ody &o spo%ses sepaa!ed i$ &a"! o i$ law 3%$de !+e se"o$d paa,ap+ o& A!i"le *4( o& !+e Family Code6 is also %$disp%!ed: /$o "+ild %$de se#e$ yeas o& a,e s+all be sepaa!ed &om !+e mo!+e 9 9 9.7 3T+is s!a!%!oy awadi$, o& sole pae$!al "%s!ody !o !+e mo!+e is ma$da!oy ,o%$ded o$ so%$d poli"y "o$sidea!io$ s%be"! o$ly !o a $aow e9"ep!io$ $o! alle,ed !o ob!ai$ +ee.6!+ei Clealy !+e$%$de !+e A,eeme$!?s obe"! es!ablis+ a pos!Bdi#o"e oi$!T+%s "%s!ody pe!i!io$e o#e "+ild se#e$ yeas old !o "o$!a#e$es >+ilippi$e law. !+ee,ime oi$! be!wee$ "%s!ody espo$de$! a,eeme$! a$d be!wee$ !+e pae$!s is void a) initio &o bei$, "o$!ay !o law. Also i! +as also bee$ ep%dia!ed by !+e mo!+e w+e$ s+e e&%sed !o allow oi$! "%s!ody by !+e &a!+e. T+e a,eeme$! wo%ld be #alid i& !+e spo%ses +a#e $o! di#o"ed o sepaa!ed be"a%se !+e law po#ides &o oi$! pae$!al a%!+oi!y w+e$ spo%ses li#e !o,e!+e. 8owe#e %po$ sepaa!io$ o& !+e spo%ses !+e mo!+e !a2es sole "%s!ody %$de !+e law i& !+e "+ild is below se#e$ yeas old a$d a$y a,eeme$! !o !+e "o$!ay is #oid. T+e sepaa!ed pae$!s "a$$o! "o$!a"! away !+e po#isio$ i$ !+e Family Code o$ !+e ma!e$al "%s!ody o& "+ilde$ below se#e$ yeas. 9erald Black acasin vs. Sharon el /undo acasin, ".R. #o. $'%2%&, e)ruary &, +$ S>ECIAL >ARE=TAL AUT8ORITY
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&oeseeable by !+e s"+ool i!s o&&i"ials a$d !ea"+es. T+is $e,le"! i$ pe#e$!i$, a &oeseeable i$%y a$d dama,e eH%a!es !o $e,le"! i$ e9e"isi$, !+e %!mos! de,ee o& dili,e$"e eH%ied o& s"+ools i!s admi$is!a!os a$d !ea"+es a$d %l!ima!ely was !+e po9ima!e "a%se o& !+e dama,e a$d i$%y !o !+e s!%de$!. Fo a pa!y !o be liable !+ee m%s! be a &i$di$, !+a! !+e a"! o omissio$ "o$sideed as $e,li,e$! was !+e po9ima!e "a%se o& !+e i$%y "a%sed be"a%se !+e $e,li,e$"e m%s! +a#e a "a%sal "o$$e"!io$ !o !+e a""ide$!. St. ;oseph1s !ollege, Sr., ;osephini A()atali, SI!, and Rosalinda a)ugo vs. ;ayson /iranda, represented )y his father, Rodolfo S. /iranda, ".R. #o. $%+<&<, ;une +-, +$ . =e,li,e$"e; S!a$dad o& @ili,e$"e &o S"+ools; In Loco Parentis. T+e po9ima!e "a%se o& !+e s!%de$!?s i$%y was !+e "o$"%e$! &ail%e o& pe!i!io$es !o pe#e$! !+e &oeseeable mis+ap !+a! o""%ed d%i$, !+e "o$d%"! o& !+e s"ie$"e e9peime$!. >e!i!io$es wee $e,li,e$! by &aili$, !o e9e"ise !+e +i,+e de,ee o& "ae "a%!io$ a$d &oesi,+! i$"%mbe$! %po$ !+e s"+ool i!s admi$is!a!os a$d !ea"+es. A!i"le *40 o& !+e Family Code i$ ela!io$ !o A!i"le *40) o& !+e Ci#il Code bes!ows spe"ial pae$!al a%!+oi!y o$ a s"+ool i!s admi$is!a!os a$d !ea"+es o !+e i$di#id%al e$!i!y o i$s!i!%!io$ e$,a,ed i$ "+ild "ae a$d !+ese peso$s +a#e espo$sibili!y o#e !+e mi$o "+ild w+ile %$de !+ei s%pe#isio$ i$s!%"!io$ o "%s!ody. A%!+oi!y a$d espo$sibili!y s+all apply !o all a%!+oi-ed a"!i#i!ies w+e!+e i$side o o%!side !+e pemises o& !+e s"+ool e$!i!y o i$s!i!%!io$. Tea"+es o +eads o& es!ablis+me$!s o& a!s a$d !ades s+all be liable &o dama,es "a%sed by !+ei p%pils a$d s!%de$!s o appe$!i"es so lo$, as !+ey emai$ i$ !+ei "%s!ody. I$ !+is "ase !+e pe!i!io$es? $e,li,e$"e a$d &ail%e !o e9e"ise !+e eH%isi!e de,ee o& "ae a$d "a%!io$ was demo$s!a!ed by !+e &ollowi$,: 3i6 pe!i!io$e s"+ool did $o! !a2e a&&ima!i#e s!eps !o a#e! dama,e a$d i$%y !o i!s s!%de$!s al!+o%,+ i! +ad &%ll i$&oma!io$ o$ !+e $a!%e o& da$,eo%s s"ie$"e e9peime$!s "o$d%"!ed by !+e s!%de$!s d%i$, "lass; 3ii6 pe!i!io$e s"+ool did $o! i$s!all sa&e!y meas%es !o po!e"! !+e s!%de$!s w+o "o$d%"! e9peime$!s i$ "lass; 3iii6 pe!i!io$e s"+ool did $o! po#ide po!e"!i#e ,eas a$d de#i"es spe"i&i"ally ,o,,les !o s+ield s!%de$!s &om e9pe"!ed is2s a$d da$,es; a$d 3i#6 pe!i!io$e Tab%,o 3!+e !ea"+e6 was $o! i$side !+e "lassoom !+e w+ole !ime +e "lass "o$d%"!ed !+e e9peime$! spe"i&i"ally w+e$ !+e a""ide$! i$#ol#i$, !+e s!%de$! o""%ed. I$ a$y e#e$! !+e si-e o& !+e "lass&i&!y 35)6 s!%de$!s "o$d%"!i$, !+e e9peime$! is di&&i"%l! !o mo$i!o. Moeo#e pe!i!io$es "a$$o! simply de&le"! !+ei $e,li,e$"e a$d liabili!y by i$sis!i$, !+a! pe!i!io$e Tab%,o ,a#e spe"i&i" i$s!%"!io$s !o +e s"ie$"e "lass $o! !o loo2 die"!ly i$!o !+e +ea!ed "ompo%$d. St. ;oseph1s !ollege, Sr., ;osephini A()atali, SI!, and Rosalinda a)ugo vs. ;ayson /iranda, represented )y his father, Rodolfo S. /iranda, ".R. #o. $%+<&<, ;une +-, +$ . A@O>TIO= >eso$s; adop!io$. As a %le !+e +%sba$d a$d !+e wi&e m%s! oi$!ly adop!. Mee "o$se$! o& !+e +%sba$d !o !+e wi&e?s pe!i!io$ !o adop! i! $o! s%&&i"ie$!. >e!i!io$e bei$, maied a! !+e !ime !+e pe!i!io$s &o adop!io$ wee &iled s+o%ld +a#e oi$!ly &iled !+e pe!i!io$s wi!+ +e +%sba$d. T+e &ili$, o& a "ase &o dissol%!io$ o& !+e maia,e be!wee$ pe!i!io$e a$d +e +%sba$d is o& $o mome$!. I! is $o! eH%i#ale$! !o a de"ee o& dissol%!io$ o& maia,e. U$!il a$d %$less !+ee is a %di"ial de"ee &o !+e dissol%!io$ o& !+e maia,e be!wee$ pe!i!io$e a$d +e +%sba$d !+e maia,e s!ill s%bsis!s. T+a! bei$, !+e "ase oi$! adop!io$ by !+e +%sba$d a$d !+e wi&e is eH%ied. T+e S%peme Co%! ei!ea!ed i!s %li$, !+a! si$"e a! !+e !ime !+e pe!i!io$s &o adop!io$ wee &iled pe!i!io$e was maied oi$! adop!io$ is ma$da!oy. In Re: Petition for adoption of /ichelle P. Li(, /onina P. Li( 7 In Re: Petition for adoption of /ichael ;ude P. Li(, /onina P. Li( G.R. =os. 40''*B'( May *4 *))'. >eso$s; e&&e"!s o& adop!io$. Adop!io$ +as !+e &ollowi$, e&&e"!s: 346 se#e all le,al !ies be!wee$ !+e biolo,i"al pae$!3s6 a$d !+e adop!ee e9"ep! w+e$ !+e biolo,i"al pae$! is !+e spo%se o& !+e adop!e; 3*6 deem !+e adop!ee as a le,i!ima!e "+ild o& !+e adop!e; a$d 3(6 ,i#e adop!e a$d adop!ee e"ipo"al i,+!s a$d obli,a!io$s aisi$, &om !+e ela!io$s+ip o& pae$! a$d "+ild i$"l%di$, b%! $o! limi!ed !o: 3i6 !+e i,+! o& !+e adop!e !o "+oose !+e $ame !+e "+ild is !o be 2$ow$; a$d 3ii6 !+e i,+! o& !+e adop!e a$d adop!ee !o be le,al a$d "omp%lsoy +eis o& ea"+ o!+e. T+ee&oe e#e$ i& ema$"ipa!io$ !emi$a!es pae$!al a%!+oi!y !+e adop!ee is s!ill "o$sideed a le,i!ima!e "+ild o& !+e adop!e wi!+ all !+e i,+!s o& a le,i!ima!e "+ild s%"+ as: 346 !o bea !+e s%$ame o& !+e &a!+e a$d !+e mo!+e; 3*6 !o e"ei#e s%ppo! &om !+ei pae$!s; a$d 3(6 !o be e$!i!led !o !+e le,i!ime a$d o!+e s%""essio$al i,+!s. Co$#esely !+e adop!i#e pae$!s s+all wi!+ espe"! !o !+e adop!ed "+ild e$oy all !+e be$e&i!s !o w+i"+ biolo,i"al pae$!s ae e$!i!led s%"+ as s%ppo! a$d s%""essio$al i,+!s. In Re: Petition for adoption of /ichelle
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2$ow$ si$"e "+ild+ood i$ ode !o a#oid "o$&%sio$. Al&o$ did $o! de$y +e le,i!ima"y +owe#e. S+e meely so%,+! !o %se !+e s%$ame o& +e mo!+e w+i"+ s+e +ad bee$ %si$, si$"e "+ild+ood. R%li$, i$ +e &a#o !+e Co%! +eld !+a! s+e was law&%lly e$!i!led !o %se +e mo!+e?s s%$ame addi$, !+a! !+e a#oida$"e o& "o$&%sio$ was %s!i&i"a!io$ e$o%,+ !o allow +e !o do so. I$ !+e pese$! "ase +owe#e espo$de$! de$ies +is le,i!ima"y. T+e "+a$,e bei$, so%,+! i$ espo$de$!?s pe!i!io$ ,oes so &a as !o a&&e"! +is legal status in relation to his parents. I! see2s !o "+a$,e +is le,i!ima"y !o !+a! o& ille,i!ima"y. R%le 4)( !+e$ wo%ld $o! s%&&i"e !o ,a$! espo$de$!?s s%ppli"a!io$.
La)ayo8Ro@e v. Repu)lic "a!e,oi"ally +olds !+a! /"+a$,es w+i"+ may a&&e"! !+e "i#il s!a!%s &om le,i!ima!e !o ille,i!ima!e . . . ae s%bs!a$!ial a$d "o$!o#esial al!ea!io$s w+i"+ "a$ o$ly be allowed a&!e appopia!e ad#esay po"eedi$,s . . .7 Repu)lic of the Philippines v. ;ulian ?d@ard ?(erson !oseteng8/agpayo> G.R. =o. 40'eside$!ial @e"ee =o. 54 o!+ewise 2$ow$ as A$ A"! ReH%ii$, !+e Re,is!a!io$ o& i!+s a$d @ea!+s i$ !+e >+ilippi$es w+i"+ O""%ed &om 4 a$%ay 4'K< a$d T+eea&!e po#ides:
Sec. $. Registration of )irths. All a!"s o#$ i$ +ospi!als ma!e$i!y "li$i"s pi#a!e +omes o elsew+ee %!&'!$ &'" "#!o s&a#&!$* f#o+ Ja$,a#- 1 1/ , &o &'" a&" %'"$ &'!s "#"" "o+"s "ff"&!3" iespe"!i#e o& !+e $a!io$ali!y a"e "%l!%e eli,io$ o belie& o& !+ei pae$!s w+e!+e !+e mo!+e is a pema$e$! eside$! o !a$sie$! i$ !+e >+ilippi$es a$d w+ose bi!+s +a#e $o! ye! bee$ e,is!eed +,s& " #"o#&" fo# #"*!s&#a&!o$ i$ !+e o&&i"e o& !+e lo"al "i#il e,is!a o& !+e pla"e o& bi!+ by !+e p+ysi"ia$ $%se midwi&e +ilo! o +ospi!al o "li$i" admi$is!a!o w+o a!!e$ded !+e bi!+ o i$ de&a%l! !+eeo& by ei!+e pae$! o a espo$sible membe o& !+e &amily o a ela!i#e o a$y peso$ w+o +as 2$owled,e o& !+e bi!+ o& !+e i$di#id%al "+ild. T+e epo! e&eed !o abo#e s+all be a""ompa$ied wi!+ a$ a&&ida#i! des"ibi$, !+e "i"%ms!a$"es s%o%$di$, !+e delayed e,is!a!io$. 3Emp+asis s%pplied6 Se". *. Period of registration of )irths. T'" #"*!s&#a&!o$ of &'" !#&' of a!"s #"f"##" &o !$ &'" #""!$* s"&!o$ +,s& " o$" %!&'!$ s!4&- (50) a-s f#o+ &'" a&" of "ff"&!3!&- of &'!s "#"" %!&'o,& f!$" o# f"" of a$- 6!$ . abies bo$ a&!e !+e e&&e"!i#i!y o& !+is de"ee m%s! be e,is!eed i$ !+e o&&i"e o& !+e lo"al "i#il e,is!a o& !+e pla"e o& bi!+ wi!+i$ !+i!y 3()6 days a&!e bi!+ by !+e a!!e$di$, p+ysi"ia$ $%se midwi&e +ilo! o +ospi!als o "li$i" admi$is!a!o o i$ de&a%l! o& !+e same by ei!+e pae$! o a espo$sible membe o& !+e &amily o a$y peso$ w+o +as 2$owled,e o& !+e bi!+. T+e pae$!s o !+e espo$sible membe o& !+e &amily a$d !+e a!!e$da$! a! bi!+ o !+e +ospi!al o "li$i" admi$is!a!o e&eed !o abo#e s+all be oi$!ly liable i$ "ase !+ey &ail !o e,is!e !+e $ew bo$ "+ild. I& !+ee was $o a!!e$da$! a! bi!+ o i& !+e "+ild was $o! bo$ i$ a +ospi!al o ma!e$i!y "li$i" !+e$ !+e pae$!s o !+e espo$sible membe o& !+e &amily alo$e s+all be pimaily liable i$ "ase o& &ail%e !o e,is!e !+e $ew bo$ "+ild. 3Emp+asis s%pplied6 >eside$!ial @e"ee =o. K ame$ded >.@. =o. 54 by e9!e$di$, !+e peiod o& e,is!a!io$ %p !o (4 @e"embe 4'K5. >.@. =o. 54 as ame$ded po#ided &o spe"ial e,is!a!io$ wi!+i$ a spe"i&ied peiod !o addess !+e poblem o& %$deBe,is!a!io$ o& bi!+s as well as dea!+s. I! allowed wi!+o%! &i$e o &ee o& a$y 2i$d !+e la!e e,is!a!io$ o& bi!+s a$d dea!+s o""%i$, wi!+i$ !+e peiod s!a!i$, &om 4 a$%ay 4'K< %p !o !+e da!e w+e$ !+e de"ee be"ame e&&e"!i#e. Si$"e Rey$aldo was bo$ o$ () O"!obe 4'<0 !+e la!e e,is!a!io$ o& +is bi!+ is o%!side o& !+e "o#ea,e o& >.@. =o. 54 as ame$ded. T+e la!e e,is!a!io$ o& Rey$aldo?s bi!+ &alls %$de A"! =o. (K5( o!+ewise 2$ow$ as !+e Ci#il Re,is!y Law w+i"+ !oo2 e&&e"! *Kas Feb%ay 4'(4. As a ,e$eal A"! =o. 4'(4 (K5( o$wads. applies !oCo$sidei$, !+e e,is!a!io$ all la!e bi!+s $o! o!+ewise "o#eed by >.@. =o.o$ 54 ame$ded o""%i$, &om law *K Feb%ay !+a!o&!+e e,is!a!io$ o& Rey$aldo?s bi!+ !oo2 pla"e i$ 4'05 =a!io$al Ce$s%s S!a!is!i"s O&&i"e 3=CSO6 Admi$is!a!i#e Ode =o. 4 Seies o& 4'0( ,o#e$s !+e impleme$!a!io$ o& A"! =o. (K5( i$ !+is "ase. U$de =CSO A.O. =o. 4B0( !+e bi!+ o& a "+ild s+all be e,is!eed i$ !+e o&&i"e o& !+e lo"al "i#il e,is!a wi!+i$ () days &om !+e !ime o& bi!+. A$y epo! o& bi!+ made beyo$d !+e e,leme$!ay peiod is "o$sideed delayed. T+e lo"al "i#il e,is!a %po$ e"ei#i$, a$ appli"a!io$ &o delayed e,is!a!io$ o& bi!+ is eH%ied !o p%bli"ly pos! &o a! leas! !e$ days a $o!i"e o& !+e pe$di$, appli"a!io$ &o delayed e,is!a!io$. I& a&!e !e$ days $o o$e opposes !+e e,is!a!io$ a$d !+e lo"al "i#il e,is!a is "o$#i$"ed beyo$d do%b! !+a! !+e bi!+ s+o%ld be e,is!eed +e s+o%ld e,is!e !+e same.
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Rey$aldo was +e so$. e!wee$ !+e &a"!s s!a!ed i$ a d%ly e,is!eed p%bli" do"%me$! a$d !+e &lipB&loppi$, s!a!eme$!s o& =ie#es we ae moe i$"li$ed !o s!a$d by !+e &ome. Appli"a!io$s &o delayed e,is!a!io$ o& bi!+ ,o !+o%,+ a i,oo%s po"ess. T+e boo2s ma2i$, %p !+e "i#il e,is!e ae "o$sideed p%bli" do"%me$!s a$d ae pri(a facie e#ide$"e o& !+e !%!+ o& !+e &a"!s s!a!ed !+ee. As a p%bli" do"%me$! a e,is!eed "e!i&i"a!e o& li#e bi!+ e$oys !+e pes%mp!io$ o& #alidi!y. I! is $o! &o Rey$aldo !o po#e !+e &a"!s s!a!ed i$ +is "e!i&i"a!e o& li#e bi!+ b%! &o pe!i!io$es w+o ae assaili$, !+e "e!i&i"a!e !o po#e i!s alle,ed &alsi!y. >e!i!io$es miseably &ailed !o do so. T+%s !+e !ial "o%! a$d !+e Co%! o& Appeals "oe"!ly de$ied &o la"2 o& mei! !+e pe!i!io$ !o "a$"el !+e la!e e,is!a!io$ o& Rey$aldo?s bi!+. #ieves ?stares Baldos, su)stituted )y rancisco Baldos and /artin Baldos vs. !ourt of Appeals and Reynaldo Pilla5ar a.k.a. Reynaldo ?stares Baldos, ".R. #o. $2'*&, ;uly -, +$. Family ela!io$s; %se o& maide$ $ame by maied woma$; i$ a passpo!. I$ !+e pese$! "ase pe!i!io$e w+ose maia,e is s!ill s%bsis!i$, a$d w+o op!ed !o %se +e +%sba$d?s s%$ame i$ +e old passpo! eH%es!ed !o es%me +e maide$ $ame i$ !+e epla"eme$! passpo! a,%i$, !+a! $o law po+ibi!s +e &om %si$, +e maide$ $ame. >e!i!io$e "i!es =asin as !+e appli"able pe"ede$!. 8owe#e =asin is $o! sH%aely i$ poi$! wi!+ !+is "ase. U$li2e i$ =asin w+i"+ i$#ol#ed a M%slim di#o"ee w+ose &ome +%sba$d is aleady maied !o a$o!+e woma$ pe!i!io$e?s maia,e emai$s s%bsis!i$,. A$o!+e poi$! =asin did $o! i$#ol#e a eH%es! !o es%me o$e?s maide$ $ame i$ a epla"eme$! passpo! b%! a pe!i!io$ !o es%me o$e?s maide$ $ame i$ #iew o& !+e dissol%!io$ o& o$e?s maia,e. T+e law ,o#e$i$, passpo! iss%a$"e is RA 0*(' a$d !+e appli"able po#isio$ i$ !+is "ase is Se"!io$ 53d6 w+i"+ se!s o%! w+e$ a maied woma$ may e#e! !o +e maide$ $ame i$ +e passpo!. =o$e o& !+ese i$s!a$"es ae pese$!. >e!i!io$e +owe#e a,%es !+a! RA 0*(' e&&e"!i#ely "o$&li"!s wi!+ a$d !+%s opea!es as a$ implied epeal o& A!i"le (K) o& !+e Ci#il Code. >e!i!io$e is mis!a2e$. RA 0*(' does $o! po+ibi! a maied woma$ &om %si$, +e maide$ $ame i$ +e passpo!. I$ &a"! i$ e"o,$i!io$ o& !+is i,+! !+e @FA allows a maied woma$ w+o applies &o a passpo! &o !+e &is! !ime !o %se +e maide$ $ame. S%"+ a$ appli"a$! is $o! eH%ied !o adop! +e +%sba$d?s s%$ame. I$ !+e "ase o& e$ewal o& passpo! a maied woma$ may ei!+e adop! +e +%sba$d?s s%$ame o "o$!i$%o%sly %se +e maide$ $ame. I& s+e "+ooses !o adop! +e +%sba$d?s s%$ame i$ +e $ew passpo! !+e @FA addi!io$ally eH%ies !+e s%bmissio$ o& a$ a%!+e$!i"a!ed "opy o& !+e maia,e "e!i&i"a!e. O!+ewise i& s+e pe&es !o "o$!i$%e %si$, +e maide$ $ame s+e may s!ill do so. T+e @FA will $o! po+ibi! +e &om "o$!i$%o%sly %si$, +e maide$ $ame. 8owe#e o$"e a maied woma$ adop!?s +e +%sba$d?s s%$ame i$ +e passpo! s+e may $o! e#e! !o !+e %se o& +e maide$ $ame e9"ep! i$ !+e "ases e$%mea!ed i$ Se"!io$ 53d6 o& RA 0*('. T+ese "ases ae 346 dea!+ o& +%sba$d 3*6 di#o"e 3(6 a$$%lme$! 3<6 $%lli!y o& maia,e. /a. 0irginia 0. Re(o vs. he 9onora)le Secretary of oreign Affairs, ".R. #o. $'-++. /arch &, +$.
II. PROPERTY OW=ERS8I> >ope!y; p%bli" pope!y. >la-a Ri-al pa!a2es o& !+e $a!%e o& a p%bli" pa2 o pome$ade. As s%"+ >la-a Ri-al is "lassi&ied as a pope!y &o p%bli" %se. I$ M%$i"ipali!y o& Sa$ Calos >a$,asi$a$ #. Mo&e !+e Co%! e"o,$i-ed !+a! a p%bli" pla-a is a p%bli" la$d belo$,i$, !o a$d s%be"! !o !+e admi$is!a!io$ a$d "o$!ol o& !+e Rep%bli" o& !+e >+ilippi$es. Abse$! a$ e9pess ,a$! by !+e Spa$is+ Go#e$me$! o !+a! o& !+e >+ilippi$es !+e lo"al ,o#e$me$! %$i! w+ee !+e pla-a was si!%a!ed w+i"+ i$ !+a! "ase was !+e M%$i"ipali!y o& Sa$ Calos +ad $o i,+! !o "laim i! as i!s pa!imo$ial pope!y. T+e Co%! &%!+e +eld !+a! w+a!e#e i,+! o& admi$is!a!io$ !+e M%$i"ipali!y o& Sa$ Calos may +a#e e9e"ised o#e said pla-a was $o! popie!ay b%! ,o#e$me$!al i$ $a!%e. T+e same did $o! e9"l%de !+e $a!io$al ,o#e$me$!. O$ !+e "o$!ay i! was possessed o$ be+al& a$d i$ epese$!a!io$ !+eeo& !+e m%$i"ipal ,o#e$me$! o& Sa$ Calos bei$, i$ !+e pe&oma$"e o& i!s poli!i"al &%$"!io$s a mee a,e$"y o& !+e Rep%bli" a"!i$, &o i!s be$e&i!. Applyi$, !+e abo#e po$o%$"eme$!s !o !+e i$s!a$! "ase Camai$es S% +ad !+e i,+! !o admi$is!e a$d possess >la-a Ri-al pio !o !+e "o$#esio$ o& !+e !+e$ M%$i"ipali!y o& =a,a i$!o !+e i$depe$de$! Ci!y o& =a,a as !+e pla-a was !+e$ pa! o& !+e
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!+eeby "eased !o be pa! o& !+e !ei!oial %isdi"!io$ o& Camai$es S% a$d was i$s!ead !a$s&eed !o !+e !ei!oial %isdi"!io$ o& !+e Ci!y o& =a,a. T+ee!o&oe !+e lo"al ,o#e$me$! %$i! !+a! is !+e pope a,e$! o& !+e Rep%bli" o& !+e >+ilippi$es !+a! s+o%ld admi$is!e a$d possess >la-a Ri-al is !+e Ci!y o& =a,a. Camai$es S% "a$$o! "laim !+a! >la-a Ri-al is pa! o& i!s pa!imo$ial pope!y. T+e basis &o !+e "laim o& ow$es+ip o& Camai$es S% i.e. !+e !a9 de"laa!io$ "o#ei$, >la-a Ri-al i$ !+e $ame o& !+e po#i$"e +adly "o$#i$"es !+is Co%!. WellB se!!led is !+e %le !+a! a !a9 de"laa!io$ is $o! "o$"l%si#e e#ide$"e o& ow$es+ip o o& !+e i,+! !o possess la$d w+e$ $o! s%ppo!ed by a$y o!+e e#ide$"e. T+e same is meely a$ i$di"ia o& a "laim o& ow$es+ip.D<) I$ !+e same ma$$e !+e Ce!i&i"a!io$ da!ed 4< %$e 4'' iss%ed by !+e @epa!me$! o& E$#io$me$! a$d =a!%al Reso%"es1Comm%$i!y E$#io$me$! a$d =a!%al Reso%"es O&&i"e 3@E=RBCE=RO6 i$ &a#o o& Camai$es S% meely s!a!i$, !+a! !+e pa"el o& la$d des"ibed !+eei$ p%po!edly >la-a Ri-al was bei$, "laimed solely by Camai$es S% +adly "o$s!i!%!es "a!e,oi"al poo& o& !+e alle,ed ow$es+ip o& !+e said pope!y by !+e po#i$"e. T+%s bei$, a pope!y &o p%bli" %se wi!+i$ !+e !ei!oial %isdi"!io$ o& !+e Ci!y o& =a,a >la-a Ri-al s+o%ld be %$de !+e admi$is!a!i#e "o$!ol a$d s%pe#isio$ o& !+e said "i!y. Province of !a(arines Sur, represented )y "overnor Luis Ray(und . 0illafuerte, ;r. vs. 9on. !ourt of Appeals and !ity of #aga, represented )y /ayor ;esse /. Ro)redo, ".R. #o. $2&'*, Septe()er $%, +@eed o& es!i"!io$; bi$di$, e&&e"!. I$ !+is "ase !+e S%peme Co%! e$oi$ed !+e ow$es o& pope!y i$ Ayala Alaba$, illa,e &om opea!i$, a ,ade s"+ool a$d +i,+ s"+ool o$ !+e pope!y i$ li,+! o& a deed o& es!i"!io$s o$ !+e %se 3a$$o!a!ed o$ !+e !i!le6 allowi$, o$ly !+e opea!io$ o& a pepaa!oy s"+ool. T+is was i$ spi!e o& !+e iss%a$"e o& a m%$i"ipal odi$a$"e "lassi&yi$, !+e aea as i$s!i!%!io$al. 8ee !+e ow$es "i!ed pe#io%s S%peme Co%! "ases w+ee e"lassi&i"a!io$ made by ,o#e$me$! !%mped deeds o& es!i"!io$ imposed by !+e la$d de#elope o$ !+e ,o%$d !+a! !+ey wee #alid e9e"ises o& poli"e powe. 8owe#e i$ !+is "ase !+e "o%! e&%sed !o apply !+ose %li$,s s!a!i$, !+a! i$ !+ose "ases !+e "o$di!io$s o& !+e aea !+a! +ad bee$ e"lassi&ied !%ly e&le"!ed !+e $ew %se bei$, pemi!!ed by !+e lo"al ,o#e$me$!. T+%s i$ o$e "ase i$#ol#i$, O!i,as P Co. !+e S%peme Co%! !oo2 %di"ial $o!i"e o& !+e &a"! !+a! !+e aea "o#eed by !+e es!i"!io$ eH%ii$, eside$!ial %se o$ly was aleady i$ a "omme"ial se"!o wi!+ a ,ea! deal o& !a&&i" i$ !+e #i"i$i!y. T+%s /si$"e i! is $ow %$po&i!able $ay a +a-ad !o !+e +eal!+ a$d "om&o! !o %se Lo!s =os. 5 a$d &o s!i"!ly eside$!ial p%poses de&e$da$!sBappellees s+o%ld be pemi!!ed o$ !+e s!e$,!+ o& !+e esol%!io$ pom%l,a!ed %$de !+e poli"e powe o& !+e m%$i"ipali!y !o %se !+e same &o "omme"ial p%poses.7 %! i$ !+e "ase o& Ayala Alaba$, !+e "o%! $o!ed !+a! !+e aea s%o%$di$, !+e s"+ool was s!ill la,ely s%o%$ded by eside$!ial lo!s a$d emai$ed p%ely eside$!ial. F%!+emoe !+e lo"al ,o#e$me$! i$ e9plai$i$, !+e easo$ w+y i! +ad e"lassi&ied !+e aea as /i$s!i!%!io$al7 s!a!ed !+a! i! was simply adop!i$, !+e "lassi&i"a!io$ %sed i$ a -o$i$, map p%po!edly s%bmi!!ed by !+e la$d de#elope i!sel&. I$ o!+e wods !+e m%$i"ipali!y was $o! asse!i$, a$y i$!ees! o -o$i$, p%pose "o$!ay !o !+a! o& !+e s%bdi#isio$ de#elope i$ de"lai$, !+e s%be"! pope!y as i$s!i!%!io$al. he Learning !hild, Inc. and Sps. elipe and /ary Anne Alfonso 0s. Ayala Ala)ang 0illage Association, Spouses ?rnest and Al(a Ar5aga, et al.7;ose /arie 0. Aquino, (inor and represented )y his parents r. ?rrol Aquino and Atty. /arilyn Aquino, et al. 0s. Ayala Ala)ang 0illage Association, Spouses ?rnesto and Al(a Ar5aga, et al.7Ayala Ala)ang 0illage Association, Spouses ?rnesto and Al(a Ar5aga, et al. 0s./unicipality of /untinlupa, et al., ".R. #o. $<*+'-7".R. #o. $<***7".R. #o. $**&$%, ;uly 2, +$. A""e!io$. A!i"le <5K o& !+e Ci#il Code eH%ies !+e "o$"%e$"e o& !+e &ollowi$, eH%isi!es &o a""e!io$: 346 !+a! !+e deposi!io$ o& soil o sedime$! be ,ad%al a$d impe"ep!ible; 3*6 !+a! i! be !+e es%l! o& !+e a"!io$ o& !+e wa!es o& !+e i#e; a$d 3(6 !+a! !+e la$d w+ee a""e!io$ !a2es pla"e is ada"e$! !o !+e ba$2s o& i#es. T+%s i! is $o! e$o%,+ !o be a ipaia$ ow$e i$ ode !o e$oy !+e be$e&i!s o& a""e!io$. O$e w+o "laims !+e i,+! o& a""e!io$ m%s! s+ow by pepo$dea$! e#ide$"e !+a! +e +as me! all !+e "o$di!io$s po#ided by law. #e@ Regent Sources, Inc. vs. eofilo 0ictor anuatco, ;r. and 0icente !uevas G.R. =o. 400)) Apil 4 *))'. >ope!y; Ow$es+ip; All%#ial @eposi!s. I$ "ase yo% e#e wo$deed w+o ow$s la$d &omed by all%#ial deposi!s wo$de $o moe. T+e ow$es+ip o& s%"+ la$d is ,o#e$ed by A!i"le 0< o& !+e Spa$is+ Law o& Wa!es o& 40 w+i"+ emai$s i$ e&&e"! i$ ela!io$ !o A!i"le <5K o& !+e Ci#il Code. A!i"le 0< o& !+e Spa$is+ Law o& Wa!es o& 40 spe"i&i"ally "o#es ow$es+ip o#e all%#ial deposi!s alo$, !+e ba$2s o& a "ee2. A""odi$, !o !+is a!i"le a""e!io$s deposi!ed ,ad%ally %po$ la$ds "o$!i,%o%s !o "ee2s s!eams i#es a$d la2es by a""essio$s o sedime$!s &om !+e wa!es !+eeo& belo$, !o !+e ow$es o& s%"+ la$ds. I$ !+is e,ad A!i"le <5K o& !+e Ci#il Code s!a!es !+a! /DT o !+e ow$es o& la$ds adoi$i$, !+e ba$2s o& i#es belo$, !+e a""e!io$ w+i"+ !+ey ,ad%ally e"ei#e &om !+e e&&e"!s o& !+e "%e$! o& !+e wa!es. I! is !+ee&oe e9pli"i! &om !+e &oe,oi$, po#isio$s !+a! all%#ial deposi!s alo$, !+e ba$2s o& a "ee2 do $o! &om pa! o& !+e p%bli" domai$ as !+e all%#ial pope!y a%!oma!i"ally belo$,s !o !+e ow$e o& !+e es!a!e !o w+i"+ i! may +a#e bee$ added. T+e o$ly es!i"!io$ po#ided &o by law is
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aleady bee$ ee"!ed o$ !+e pope!y. As e9plai$ed by !+e CA: /DA$!o$io "laims $o! bei$, awae o& a$y &law i$ +is !i!le. 8e belie#ed bei$, !+e ow$e o& !+e s%be"! pemises o$ a""o%$! o& !+e @eed o& Sale !+eeo& i$ +is &a#o despi!e +is i$abili!y !o e,is!e !+e same. T+e impo#eme$! was i$ &a"! i$!od%"ed by A$!o$io pio !o Filome$a?s p%"+ase o& !+e la$d. 9 9 9.7 T+%s A$!o$io is a b%ilde i$ ,ood &ai!+. U$de A!i"le <<0 a la$dow$e is ,i#e$ !+e op!io$ !o ei!+e appopia!e !+e impo#eme$! as +is ow$ %po$ payme$! o& !+e pope amo%$! o& i$dem$i!y o sell !+e la$d !o !+e possesso i$ ,ood &ai!+. Rela!edly A!i"le 5< po#ides !+a! a b%ilde i$ ,ood &ai!+ is e$!i!led !o &%ll eimb%seme$! &o all !+e $e"essay a$d %se&%l e9pe$ses i$"%ed; i! also ,i#es +im i,+! o& e!e$!io$ %$!il &%ll eimb%seme$! is made. ilo(ena R. Benedicto vs. Antonio 0illaflores> ".R. #o. $%&+. 3cto)er ', +$. >ope!y; b%ilde i$ ,ood &ai!+. A!i"le 5*K o& !+e Ci#il Code pes%mes ,ood &ai!+ a$d si$"e $o poo& e9is!s !o s+ow !+a! !+e mis!a2e was do$e by pe!i!io$es i$ bad &ai!+ !+e la!!e s+o%ld be pes%med !o +a#e b%il! !+e +o%se i$ ,ood &ai!+. W+e$ a peso$ b%ilds i$ ,ood &ai!+ o$ !+e la$d o& a$o!+e A!i"le <<0 o& !+e Ci#il Code ,o#e$s. T+is a!i"le "o#es "ases i$ w+i"+ !+e b%ildes sowes o pla$!es belie#e !+emsel#es !o be ow$es o& !+e la$d o a! leas! !o +a#e a "laim o& !i!le !+ee!o. T+e b%ilde i$ ,ood &ai!+ "a$ "ompel !+e la$dow$e !o ma2e a "+oi"e be!wee$ appopia!i$, !+e b%ildi$, by payi$, !+e pope i$dem$i!y o obli,i$, !+e b%ilde !o pay !+e pi"e o& !+e la$d. T+e "+oi"e belo$,s !o !+e ow$e o& !+e la$d a %le !+a! a""ods wi!+ !+e pi$"iple o& a""essio$ i.e. !+a! !+e a""essoy &ollows !+e pi$"ipal a$d $o! !+e o!+e way ao%$d. 8owe#e e#e$ as !+e op!io$ lies wi!+ !+e la$dow$e !+e ,a$! !o +im $e#e!+eless is pe"l%si#e. 8e m%s! "+oose o$e. 8e "a$$o! &o i$s!a$"e "ompel !+e ow$e o& !+e b%ildi$, !o emo#e !+e b%ildi$, &om !+e la$d wi!+o%! &is! e9e"isi$, ei!+e op!io$. I! is o$ly i& !+e ow$e "+ooses !o sell +is la$d a$d !+e b%ilde o pla$!e &ails !o p%"+ase i! w+ee i!s #al%e is $o! moe !+a$ !+e #al%e o& !+e impo#eme$!s !+a! !+e ow$e may emo#e !+e impo#eme$!s &om !+e la$d. T+e ow$e is e$!i!led !o s%"+ emo!io$ o$ly w+e$ a&!e +a#i$, "+ose$ !o sell +is la$d !+e o!+e pa!y &ails !o pay &o !+e same. Moeo#e pe!i!io$es +a#e !+e i,+! !o be i$dem$i&ied &o !+e $e"essay a$d %se&%l e9pe$ses !+ey may +a#e made o$ !+e s%be"! pope!y as po#ided i$ A!i"les 5< a$d 5<0 o& !+e Ci#il Code. Co$seH%e$!ly !+e espo$de$!Bspo%ses +a#e !+e op!io$ !o appopia!e !+e +o%se o$ !+e s%be"! la$d a&!e payme$! !o pe!i!io$es o& !+e appopia!e i$dem$i!y o !o obli,e pe!i!io$es !o pay !+e pi"e o& !+e la$d %$less i!s #al%e is "o$sideably moe !+a$ !+e #al%e o& !+e s!%"!%es i$ w+i"+ "ase pe!i!io$es s+all pay easo$able e$!. Luciano Briones and #elly Briones vs. ;ose /aca)agdal, e . /aca)agdal and 0ergon Realty Invest(ents !orporation, ".R. #o. $&''', August <, +$ >ope!y; b%ilde i$ bad &ai!+. I& a #oidable "o$!a"! is a$$%lled !+e es!oa!io$ o& w+a! +as bee$ ,i#e$ is pope. T+e ela!io$s+ip be!wee$ !+e pa!ies i$ a$y "o$!a"! e#e$ i& s%bseH%e$!ly a$$%lled m%s! always be "+aa"!ei-ed a$d p%$"!%a!ed by ,ood &ai!+ a$d &ai deali$,. 8e$"e i$ "o$so$a$"e wi!+ %s!i"e a$d eH%i!y a$d !+e sal%!ay pi$"iple o& $o$Be$i"+me$! a!a$o!+e?s e9pe$se we s%s!ai$ !+e appella!e "o%!?s ode die"!i$, >edo !o e!%$ !o pe!i!io$e spo%ses !+e #al%e o& !+e "o$sidea!io$ &o !+e lo! "o#eed byTCT =o. TB00K< a$d !+e +o%se !+eeo$. 8owe#e !+is "o%! %les !+a! pe!i!io$es "a$$o! "laim eimb%seme$!s &o impo#eme$!s !+ey i$!od%"ed a&!e !+ei ,ood &ai!+ +ad "eased. As "oe"!ly &o%$d by !+e Co%! o& Appeals pe!i!io$e>a!o"i$ia Ra#i$a made impo#eme$!s a$d e$o#a!io$s o$ !+e +o%se a$d lo! a! !+e !ime w+e$ !+e "omplai$! a,ai$s! !+em was &iled. Ra#i$a "o$!i$%ed i$!od%"i$, impo#eme$!s d%i$, !+e pe$de$"y o& !+e a"!io$. T+%s A!i"le <<' o& !+e =ew Ci#il Code is appli"able. I! po#ides !+a! /3+6e w+o b%ilds pla$!s o sows i$ bad &ai!+ o$ !+e la$d o& a$o!+e loses w+a! is b%il! pla$!ed o sow$ wi!+o%! i,+! !o i$dem$i!y.7 Patronica Ravina and ilfredo Ravina vs. /ary Ann P. 0illa A)rille, for )ehalf of Ingrid 1Lyn P. 0illa A)rille, et al., ".R. #o. $'2%, 3cto)er $', +-. >ope!y; b%ilde i$ bad &ai!+. T+e %le !+a! !+e "+oi"e %$de A!i"le <<0 o& !+e Ci#il Code belo$,s !o !+e ow$e o& !+e la$d is i$ a""od wi!+ !+e pi$"iple o& a""essio$ i.e. !+a! !+e a""essoy &ollows !+e pi$"ipal a$d $o! !+e o!+e way ao%$d. E#e$ as !+e op!io$ lies wi!+ !+e la$dow$e !+e ,a$! !o +im $e#e!+eless ispe"l%si#e. T+e la$dow$e "a$$o! e&%se !o e9e"ise ei!+e op!io$ a$d "ompel i$s!ead !+e ow$e o& !+e b%ildi$, !o emo#e i! &om !+e la$d. T+e aiso$ d?e!e &o !+is po#isio$ +as bee$ e$%$"ia!ed !+%s: W+ee !+e b%ilde pla$!e o sowe +as a"!ed i$ ,ood &ai!+ a "o$&li"! o& i,+!s aises be!wee$ !+e ow$es a$d i! be"omes $e"essay !o po!e"! !+e ow$e o& !+e impo#eme$!s wi!+o%! "a%si$, i$%s!i"e !o !+e ow$e o& !+e la$d. I$ #iew o& !+e impa"!i"abili!y o& "ea!i$, a s!a!e o& &o"ed "oBow$es+ip !+e law +as po#ided a %s! sol%!io$ by ,i#i$, !+e ow$e o& !+e la$d !+e op!io$ !o a"H%ie !+e impo#eme$!s a&!e payme$! o& !+e pope i$dem$i!y o !o obli,e !+e b%ilde o pla$!e !o pay &o !+e la$d a$d !+e sowe !+e pope e$!. 8e "a$$o! e&%se !o
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!+e$ !+e po#isio$s o& A!i"le <<0 s+o%ld apply !o de!emi$e !+e espe"!i#e i,+!s o& !+e pa!ies. I$ !+is "ase !+e "oBow$es+ip was !emi$a!ed d%e !o !+e !a$s&e o& !+e !i!le o& !+e w+ole pope!y i$ &a#o o& oaH%i$Lime$se. U$de !+e &oe,oi$, po#isio$ pe!i!io$es +a#e !+e i,+! !o appopia!e said po!io$ o& !+e +o%se o& espo$de$!s %po$ payme$! o& i$dem$i!y !o espo$de$!s as po#ided &o i$ A!i"le 5< o& !+e Ci#il Code. O!+ewise pe!i!io$es may obli,e espo$de$!s !o pay !+e pi"e o& !+e la$d o""%pied by !+ei +o%se. 8owe#e i& !+e pi"e as2ed &o is "o$sideably m%"+ moe !+a$ !+e #al%e o& !+e po!io$ o& !+e +o%se o& espo$de$!s b%il! !+eeo$ !+e$ !+e la!!e "a$$o! be obli,ed !o b%y !+e la$d. Respo$de$!s s+all !+e$ pay !+e easo$able e$! !o pe!i!io$es %po$ s%"+ !ems a$d "o$di!io$s !+a! !+ey may a,ee. I$ "ase o& disa,eeme$! !+e !ial "o%! s+all &i9 !+e !ems !+eeo&. O& "o%se espo$de$!s may demolis+ o emo#e !+e said po!io$ o& !+ei +o%se a! !+ei ow$ e9pe$se i& !+ey so de"ide.
T+e "+oi"ea$d belo$,s !o !+e ow$e o& !+e la$d E#e$ a %le as !+a! a""ods pi$"iple o& a""essio$ !+e a""essoy &ollows !+e pi$"ipal $o! !+e o!+e way ao%$d. !+e op!io$wi!+ lies !+e wi!+ !+e la$dow$e !+e!+a! ,a$! !o +im $e#e!+eless ispe"l%si#e. 8e m%s! "+oose o$e. 8e "a$$o! &o i$s!a$"e "ompel !+e ow$e o& !+e b%ildi$, !o i$s!ead emo#e i! &om !+e la$d. T+e ob#io%s be$e&i! !o !+e b%ilde %$de !+is a!i"le is !+a! i$s!ead o& bei$, o%!i,+!ly ee"!ed &om !+e la$d +e "a$ "ompel !+e la$dow$e !o ma2e a "+oi"e be!wee$ !wo op!io$s: 346 !o appopia!e !+e b%ildi$, by payi$, !+e i$dem$i!y eH%ied by law o 3*6 !o sell !+e la$d !o !+e b%ilde. 9eirs of the late ;oaquin Li(ense vs. Rita vda. e Ra(os, et al., ".R. #o. $&+<$-, 3cto)er +%, +-. Sale by $o$Bow$e; possessio$ i$ ,ood &ai!+. T+e S%peme Co%! +eld !+a! !+e deed o& sale e9e"%!ed by Ma9ima i$ &a#o o& pe!i!io$es was $%ll a$d #oid si$"e Ma9ima was $o! !+e ow$e o& !+e la$d s+e sold !o pe!i!io$es a$d !+e o$eB+al& $o!+e$ po!io$ o& s%"+ la$d was ow$ed by espo$de$!s. ei$, a$ absol%!e $%lli!y !+e deed is s%be"! !o a!!a"2 a$y!ime i$ a""oda$"e wi!+ A!i"le 4<4) o& !+e Ci#il Code !+a! a$ a"!io$ !o de"lae !+e i$e9is!e$"e o& a #oid "o$!a"! does $o! pes"ibe. W+e$ !+ee is a s+owi$, o& s%"+ ille,ali!y !+e pope!y e,is!eed is deemed !o be simply +eld i$ !%s! &o !+e eal ow$e by !+e peso$ i$ w+ose $ame i! is e,is!eed a$d !+e &ome !+e$ +as !+e i,+! !o s%e &o !+e e"o$#eya$"e o& !+e pope!y. A$ a"!io$ &o e"o$#eya$"e based o$ a #oid "o$!a"! is impes"ip!ible. As lo$, as !+e la$d wo$,&%lly e,is!eed %$de !+e Toe$s sys!em is s!ill i$ !+e $ame o& !+e peso$ w+o "a%sed s%"+ e,is!a!io$ a$ a"!io$ i$ peso$am will lie !o "ompel +im !o e"o$#ey !+e pope!y !o !+e eal ow$e. I$ !+is "ase !i!le !o !+e pope!y is i$ !+e $ame o& pe!i!io$e Ro,elia; !+%s !+e !ial "o%! "oe"!ly odeed !+e e"o$#eya$"e o& !+e s%be"! la$d !o espo$de$!s. >e!i!io$es "o$!e$d !+a! !+ey ae possessos i$ ,ood &ai!+ !+%s !+e awad o& dama,es s+o%ld $o! +a#e bee$ imposed. T+ey &%!+e "o$!e$d !+a! %$de A!i"le 5<< a possesso i$ ,ood &ai!+ is e$!i!led !o !+e &%i!s e"ei#ed be&oe !+e possessio$ is le,ally i$!e%p!ed; !+%s i& i$deed pe!i!io$es ae oi$!ly a$d se#eally liable !o espo$de$!s &o !+e pod%"e o& !+e s%be"! la$d !+e liabili!y s+o%ld be e"2o$ed o$ly &o 4''4 a$d $o! 4'0<. T+e S%peme Co%! &o%$d pa!ial mei! i$ !+e a,%me$!. A!i"le 5*0 o& !+e Ci#il Code po#ides !+a! possessio$ a"H%ied i$ ,ood &ai!+ does $o! lose !+is "+aa"!e e9"ep! i$ a "ase a$d &om !+e mome$! &a"!s e9is! w+i"+ s+ow !+a! !+e possesso is $o! %$awae !+a! +e possesses !+e !+i$, impopely o wo$,&%lly. >ossessio$ i$ ,ood &ai!+ "eases &om !+e mome$! de&e"!s i$ !+e !i!le ae made 2$ow$ !o !+e possessos by e9!a$eo%s e#ide$"e o by s%i! &o e"o#ey o& !+e pope!y by !+e !%e ow$e. W+a!e#e may be !+e "a%se o !+e &a"! &om w+i"+ i! "a$ be ded%"ed !+a! !+e possesso +as 2$owled,e o& !+e de&e"!s o& +is !i!le o mode o& a"H%isi!io$ i! m%s! be "o$sideed s%&&i"ie$! !o s+ow bad &ai!+. S%"+ i$!e%p!io$ !a2es pla"e %po$ se#i"e o& s%mmo$s. A!i"le 5<< o& !+e Ci#il Code po#ides !+a! a possesso i$ ,ood &ai!+ is e$!i!led !o !+e &%i!s o$ly so lo$, as +is possessio$ is $o! le,ally i$!e%p!ed. Re"ods s+ow !+a! pe!i!io$es e"ei#ed a s%mmo$s !o,e!+e wi!+ espo$de$!s? "omplai$! o$ A%,%s! 5 4''4; !+%s pe!i!io$es? ,ood &ai!+ "eased o$ !+e day !+ey e"ei#ed !+e s%mmo$s. Co$seH%e$!ly pe!i!io$es s+o%ld pay espo$de$!s 4) "a#a$s o& palay pe a$$%m be,i$$i$, A%,%s! 5 4''4 i$s!ead o& 4'0<. @a"la, #s. Ma"a+ili, G.R. =o. 45'5K0 Feb%ay 40 *))'. COBOW=ERS8I> Ow$es+ip "oBow$es+ip. T+e po!io$s belo$,i$, !o !+e "oBow$es i$ !+e "oBow$es+ip s+all be pes%med eH%al %$less !+e "o$!ay is po#ed. Aurora L. ecson, et al. v. /inverva, /aria, et al. all surna(ed austo and Isa)el 0da. e austo> G.R. =o. 40)0(. %$e 4 *)44 Co$domi$i%m A"!; espo$sibili!y !o epai "ommo$ pope!y. I$ a m%l!iBo""%pa$"y dwelli$, s%"+ as apa!me$!s limi!a!io$s ae imposed %$de R.A.
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U$H%es!io$ably !+e &%se bo9 "o$!ols !+e s%pply o& ele"!i"i!y i$!o !+e %$i!. >owe is so%"ed !+o%,+ %mpe "ables a!!a"+ed !o !+e mai$ swi!"+ w+i"+ "o$$e"!s !+e %$i!?s ele"!i"al li$e !o !+e Apa!me$!?s "ommo$ ele"!i"al li$e. I! is a$ i$!e,al "ompo$e$! o& a powe %!ili!y i$s!alla!io$. Respo$de$! "a$$o! dis"laim espo$sibili!y &o !+e mai$!e$a$"e o& !+e Apa!me$!s? ele"!i"al s%pply sys!em solely be"a%se a "ompo$e$! !+eeo& is pla"ed i$side a %$i!. As ealie s!a!ed bo!+ !+e law a$d !+e Mas!e @eed e&e !o %!ili!y i$s!alla!io$s as &omi$, pa! o& !+e "ommo$ aeas w+i"+ e&ee$"e is %s!i&ied by pa"!i"al "o$sidea!io$s. Repais !o "oe"! a$y de&e"!s i$ !+e ele"!i"al wii$, s+o%ld be %$de !+e "o$!ol a$d s%pe#isio$ o& espo$de$! !o e$s%e sa&e!y a$d "omplia$"e wi!+ !+e >+ilippi$e Ele"!i"al Code $o! !o me$!io$ se"%i!y a$d pea"e o& mi$d o& !+e %$i! ow$es. Revelina Li(son v. ack ack !ondo(iniu( !orporation ; G.R. =o. 4000)*. Feb%ay 4< *)44.
>ope!y; pes"ip!io$. CoB+eis o "oBow$es "a$$o! a"H%ie by a"H%isi!i#e pes"ip!io$ !+e Ci#il s+aeCode o& !+ew+i"+ o!+e "oB+eis o"oBow$es+ip; "oBow$es abse$! a "lea ep%dia!io$ o& !+e "oBow$es+ip as e9pessed i$ A!i"le <'< o& !+e s!a!es: A!. <'<. 9 9 9 =o pes"ip!io$ s+all %$ i$ &a#o o& a "oBow$e o "oB+ei a,ai$s! +is "oBow$es o "oB+eis as lo$, as +e e9pessly o impliedly e"o,$i-es !+e "oBow$es+ip. Si$"e possessio$ o& "oBow$es is li2e !+a! o& a !%s!ee i$ ode !+a! a "oBow$e?s possessio$ may be deemed ad#ese !o !+e cestui que trust o o!+e "oBow$es !+e &ollowi$, eH%isi!es m%s! "o$"%: 346 !+a! +e +as pe&omed %$eH%i#o"al a"!s o& ep%dia!io$ amo%$!i$, !o a$ o%s!e o& !+e cestui que trust o o!+e "oBow$es 3*6 !+a! s%"+ posi!i#e a"!s o& ep%dia!io$ +a#e bee$ made 2$ow$ !o !+e cestui que trust o o!+e "oBow$es a$d 3(6 !+a! !+e e#ide$"e !+eeo$ m%s! be "lea a$d "o$#i$"i$,. 9eirs of ;uanita Padilla, represented )y !laudio Padilla vs. o(inador /agdua, ".R. #o. $2'%&%, Septe()er $&, +$ Ow$es+ip; "oBow$es+ip; *)Byea limi!a!io$. I! is "lea &om asilio?s will !+a! +e i$!e$ded !+e +o%se a$d lo! i$ Ma$ila !o be !a$s&eed i$ pe!i!io$es? $ames &o admi$is!a!io$ p%poses o$ly a$d !+a! !+e pope!y be ow$ed by !+e +eis i$ "ommo$ !+%s: e6 A$, l%pa?! ba+ay sa L%$sod $, May$ila $a $asasaysay sa i!aas $a *3"6 ay ililipa! a! ilala,ay sa pa$,ala$ $ila Ma. >ila a! Cleme$!e '!$! !la$* a+a$a 6o sa 6a$!la 6,$! ,a$* a+a'alaa$ a& a$*ala*aa$ la+a$* $!la a! $a$, a$, si$oma$ sa a2i$, m,a a$a2 samp% $, apo a! 2aap%ap%+a$ 2o sa +aba$, pa$a+o$ ay may !%!%l%ya$ 2%$, ma,$a$ais $a ma,Baal sa May$ila o 2alapi! $a m,a l%$sod sa medali$, sali!a a$* a'a- a& l,a$* !&o7- %ala$* +a*+a+a-8a#! ba,2%s ay ,a,ami!i$ +aba$, pa$a+o$ $, si$oma$, ma,$a$ais sa a2i$, 2aap%ap%+a$ $a !%m%2las $, 2a%$%$,a$ sa paaala$ sa May$ila a! 2a!abi$, m,a l%$sod 9 9 9 9 3emp+asis a$d %$des"oi$, s%pplied6 %! !+e "o$di!io$ se! by !+e de"ede$! o$ !+e pope!y?s i$di#isibili!y is s%be"! !o a s!a!%!oy limi!a!io$. O$ !+is poi$! !+e Co%! a,ees wi!+ !+e %li$, o& !+e appella!e "o%! vi5: Fo !+is Co%! !o s%s!ai$ wi!+o%! H%ali&i"a!io$ Dpe!i!io$es?s "o$!e$!io$ is !o ,o a,ai$s! !+e po#isio$s o& law pa!i"%laly A!i"les <'< 0K) a$d 4)0( o& &'" C!3!l Co" %'!' #o3!" &'a& &'" #o'!!&!o$ &o !3!" a #o"#&- !$ a o8o%$"#s'! a$ o$l- las& fo# &%"$&- (20) -"a#s 9 9 9 9 9999 9 9 9 9 Al!+o%,+ !+e Ci#il Code is sile$! as !o !+e e&&e"! o& !+e i$di#isio$ o& a pope!y &o moe !+a$ !we$!y yeas i! wo%ld be "o$!ay !o p%bli" poli"y !o sa$"!io$ "oBow$es+ip beyo$d !+e peiod e9pessly ma$da!ed by !+e Ci#il Code 9 9 9 9
In Re: Petition for pro)ate of last @ill and testa(ent of Basilio Santiago, et al. 0s7 6oilo S. Santiago, et al., ".R. #o. $2-%&-, August -, +$. Ow$es+ip; pes"ip!io$; eleme$! o& possessio$; i$ a$ eH%i!able mo!,a,e. @id espo$de$!s a"H%ie !+e mo!,a,ed pope!y !+o%,+ pes"ip!io$ I! is !%e !+a! !+e espo$de$! Alea$do be"ame a "oBow$e o& !+e pope!y by i,+! o& epese$!a!io$ %po$ !+e dea!+ o& +is &a!+e ose S. As a "oBow$e +owe#e +is possessio$ was li2e !+a! o& a !%s!ee a$d was $o! e,aded as ad#ese !o +is "oBow$es b%! i$ &a"! be$e&i"ial !o all o& !+em. Ye! !+e espo$de$!s e9"ep! !o !+e ,e$eal %le asse!i$, !+a! Alea$do +a#i$, ealie ep%dia!ed !+e "oBow$es+ip a"H%ied ow$es+ip o& !+e pope!y !+o%,+ pes"ip!io$. T+e Co%!
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4. T+e "oBow$e +as pe&omed %$eH%i#o"al a"!s o& ep%dia!io$ o& !+e "oBow$es+ip amo%$!i$, !o a$ o%s!e o& !+e cestui que trust o !+e o!+e "oBow$es; *.
S%"+ posi!i#e a"!s o& ep%dia!io$ +a#e bee$ made 2$ow$ !o !+e cestui que trust o !+e o!+e "oBow$es;
(.
T+e e#ide$"e o$ !+e ep%dia!io$ is "lea a$d "o$"l%si#e; a$d
<.
8is possessio$ is ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s.
T+e "o$"%e$"e o& !+e &oe,oi$, eleme$!s was $o! es!ablis+ed +eei$. Fo o$e Alea$do did $o! +a#e ad#ese a$d e9"l%si#e possessio$ o& !+e pope!y as i$ &a"! !+e o!+e "oBow$es +ad "o$!i$%ed !o possess i! wi!+ Alea$do a$d +is +eis o""%pyi$, o$ly a po!io$ o& i!. =ei!+e did !+e "a$"ella!io$ o& !+e pe#io%s !a9 de"laa!io$s i$ !+e $ame o& Leo$"ia !+e pe#io%s "oB ow$e a$d !+e iss%a$"e o& a $ew o$e i$ Alea$do?s $ame a$d Alea$do?s payme$! o& !+e eal!y !a9es "o$s!i!%!e ep%dia!io$ o& !+e "oBow$es+ip. T+e sole &a"! o& a "oBow$e de"lai$, !+e la$d i$ H%es!io$ i$ +is $ame &o !a9a!io$ p%poses a$d payi$, !+e la$d !a9es did $o! "o$s!i!%!e a$ %$eH%i#o"al a"! o& ep%dia!io$ amo%$!i$, !o a$ o%s!e o& !+e o!+e "oBow$e a$d "o%ld $o! "o$s!i!%!e ad#ese possessio$ as basis &o !i!le by pes"ip!io$. Moeo#e a""odi$, !o Blatero v. Inter(ediate Appellate !ourt, i& a sale a retro is "o$s!%ed as a$ eH%i!able mo!,a,e !+e$ !+e e9e"%!io$ o& a$ a&&ida#i! o& "o$solida!io$ by !+e p%po!ed b%ye !o "o$solida!e ow$es+ip o& !+e pa"el o& la$d is o& $o "o$seH%e$"e a$d !+e /"o$s!%"!i#e possessio$7 o& !+e pa"el o& la$d will $o! ipe$ i$!o ow$es+ip be"a%se o$ly possessio$ a"H%ied a$d e$oyed in the concept of o@ner "a$ se#e as !i!le &o a"H%ii$, domi$io$. I$ &i$e !+e espo$de$!s did $o! pese$! poo& s+owi$, !+a! Alea$do +ad e&&e"!i#ely ep%dia!ed !+e "oBow$es+ip. T+ei bae "laim !+a! Alea$do +ad made oal dema$ds !o #a"a!e !o +is "oBow$es was sel&Bse#i$, a$d i$s%&&i"ie$!. Alea$do?s e9e"%!io$ o& !+e a&&ida#i! o& "o$solida!io$ o& ow$es+ip o$ A%,%s! *4 4'K) a$d +is s%bseH%e$! e9e"%!io$ o$ O"!obe 4K 4'K) o& !+e oi$! a&&ida#i! wee eally eH%i#o"al a$d ambi#ale$! a"!s !+a! did $o! ma$i&es! +is desie !o ep%dia!e !+e "oBow$es+ip. T+e o$ly %$eH%i#o"al a"! o& ep%dia!io$ was do$e by !+e espo$de$!s w+e$ !+ey &iled !+e i$s!a$! a"!io$ &o H%ie!i$, o& !i!le o$ Sep!embe *0 4''< $ealy a yea a&!e Alea$do?s dea!+ o$ Sep!embe * 4''(. 8owe#e !+ei possessio$ "o%ld $o! ipe$ i$!o ow$es+ip "o$sidei$, !+a! !+ei a"! o& ep%dia!io$ was $o! "o%pled wi!+ !+ei eEclusive possessio$ o& !+e pope!y. 9eirs of ;ose Reyes, r. na(ely> /agdalena !. Reyes, et al. vs. A(anda S. Reyes, et al., ".R. #o. $&%<22, August $<, +$. >OSSESSIO= Ow$es+ip; a"H%isi!i#e pes"ip!io$. T+e "laim o& !+e 8eis o& a$,is !+a! si$"e !+ey +a#e bee$ i$ possessio$ o& !+e s%be"! la$d si$"e 4'K* o &o *0 yeas e"2o$ed &om !+e &ili$, o& !+e "omplai$! i$ *))) !+e$ !+e pese$! a"!io$ +as pes"ibed is %$!e$able. I! beas !o $o!e !+a! w+ile a$,is i$deed !oo2 possessio$ o& !+e la$d %po$ i!s alle,ed mo!,a,e !+e "e!i&i"a!e o& !i!le 3TCT =o. (4(6 emai$ed wi!+ Adol&o a$d %po$ +is demise !a$s&eed !o +is +eis !+eeby $e,a!i$, a$y "o$!empla!ed !a$s&e o& ow$es+ip. Se!!led is !+e %le !+a! $o !i!le i$ deo,a!io$ o& !+a! o& !+e e,is!eed ow$e "a$ be a"H%ied by pes"ip!io$ o ad#ese possessio$. Moeo#e e#e$ i& a"H%isi!i#e pes"ip!io$ "a$ be appe"ia!ed i$ !+is "ase !+e 8eis o& a$,is? possessio$ bei$, i$ bad &ai!+ is !wo yeas s+y o& !+e eH%isi!e ()Byea %$i$!e%p!ed ad#ese possessio$ eH%ied %$de A!i"le 44(K o& !+e Ci#il Code. Co$seH%e$!ly !+e 8eis o& a$,is "a$$o! #alidly "laim !+e i,+!s o& a b%ilde i$ ,ood &ai!+ as po#ided &o %$de A!i"le <<' i$ ela!io$ !o A!i"le <<0 o& !+e Ci#il Code. T+%s !+e ode &o !+em !o s%e$de !+e possessio$ o& !+e disp%!ed la$d !o,e!+e wi!+ all i!s impo#eme$!s was popely made. Aniceto Bangis, su)stituted )y his heirs, na(ely Rodolfo B. Bangis, et al. 3s. 9eirs of Serafin and Salud Adolfo, na(ely: Lu5 A. Banniester, et al.; G.R. =o. 4')0K5 %$e 4( *)4*. >ope!y; b%ilde i$ bad &ai!+. See e$!y %$de ow$es+ip; a"H%isi!i#e pes"ip!io$ 3"ase o& a$,is #. 8eis o& Adol&o6. Ow$es+ip; possessio$. >ossessio$ is a$ esse$!ial a!!ib%!e o& ow$es+ip. =e"essaily w+oe#e ow$s !+e pope!y +as !+e i,+! !o possess i!. 8ee be!wee$ !+e Almeias? e,is!eed !i!le o& ow$es+ip a$d Gai!eo?s #ebal "laim !o !+e same !+e &ome?s !i!le is &a s%peio. As !+e MCTC !+e RTC a$d !+e CA &o%$d !+e disp%!ed aea &oms pa! o& !+e Almeias? e,is!eed !i!le. Upo$ e9ami$a!io$ !+is &a"! is also "o$&imed by !+e s%bdi#isio$ pla$ w+i"+ pa!i!io$ed Toma,a$?s oi,i$al Lo! ''). T+e e#ide$"e s+ows !+a! !+e Almeias bo% +! Lo! ''< w+i"+ i$"l%des !+e dis %!ed aea &om !+e Ase$ o +eis i$ w+ose $ames !+e la$d was oi i$all
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o$e &o e"o#ey o& possessio$ o& !+e disp%!ed aea. A$ ad%di"a!io$ o& +is "laim o& ow$es+ip o#e !+e same wo%ld be o%! o& pla"e i$ s%"+ 2i$d o& a"!io$. A e,is!eed !i!le "a$$o! be imp%,$ed al!eed "+a$,ed modi&ied e$la,ed o dimi$is+ed e9"ep! i$ a die"! po"eedi$, pemi!!ed by law. O!+ewise elia$"e o$ e,is!eed !i!les wo%ld be los!. Gai!eo?s a"!io$ is po+ibi!ed by law a$d s+o%ld be dismissed. Gai!eo?s !+eoy o& laches "a$$o! #es! o$ +im !+e ow$es+ip o& !+e disp%!ed aea. To be,i$ wi!+ la"+es is a "o$sidea!io$ i$ eH%i!y a$d !+ee&oe a$yo$e w+o i$#o2es i! m%s! "ome !o "o%! wi!+ "lea$ +a$ds &o +e w+o +as do$e i$eH%i!y s+all $o! +a#e eH%i!y. 8ee Gai!eo?s "laim o& la"+es a,ai$s! !+e Almeias "a$ be +%led a,ai$s! +im. W+e$ !+e lo! !+a! !+e Almeias a"H%ied 3Lo! ''<6 was e,is!eed i$ 4'K' Gai!eo +ad "o$s!%"!i#e i& $o! a"!%al $o!i"e !+a! !+e "adas!al s%#ey i$"l%ded !+e disp%!ed aea as pa! o& !+e la$d !+a! Leo$ Ase$o "laimed. Ye! $ei!+e Gai!eo $o +is mo!+e "omplai$ed o obe"!ed !o s%"+ i$"l%sio$. Wose w+e$ Gai!eo saw !+e s%bdi#isio$ pla$ "o#ei$, Toma,a$?s oi,i$al Lo! '') i$ 4''( i! s+owed !+a! !+e disp%!ed aea &ell o%!side !+e bo%$daies o& Lo! '')BA w+i"+ +e "laimed. S!ill Gai!eo did $o!+i$, !o "oe"! !+e alle,ed mis!a2e. 8e is by +is i$a"!io$ "lealy es!opped &om "laimi$, ow$es+ip o& !+e disp%!ed aea. 8e "a$$o! a#ail +imsel& o& !+e law o& eH%i!y. eliciano "aitero and #elia "aitero vs. "eneroso Al(eria and eresita Al(eria, G.R. =o. 40404*. %$e 0 *)44 >ossessio$ i$ ,ood &ai!+. T+e !e$ yea odi$ay pes"ip!i#e peiod !o a"H%ie !i!le !+o%,+ possessio$ o& eal pope!y i$ !+e "o$"ep! o& a$ ow$e eH%ies %$i$!e%p!ed possessio$ "o%pled wi!+ %s! !i!le a$d ,ood &ai!+. T+ee is %s! !i!le w+e$ !+e ad#ese "laima$! "ame i$!o possessio$ o& !+e pope!y !+o%,+ o$e o& !+e modes e"o,$i-ed by law &o !+e a"H%isi!io$ o& ow$es+ip o o!+e eal i,+!s b%! !+e ,a$!o was $o! !+e ow$e o "o%ld $o! !a$smi! a$y i,+!. Good &ai!+ o$ !+e o!+e +a$d "o$sis!s i$ !+e easo$able belie& !+a! !+e peso$ &om w+om !+e possesso e"ei#ed !+e !+i$, was !+e ow$e !+eeo& a$d "o%ld !a$smi! +is ow$es+ip. "on5alo 0illanueva, represented )y his heirs vs. Spouses roilan and Leonila Branoco> ".R. #o. $2+%*, ;anuary +*, +$$. >ope!y; b%ye i$ ,ood &ai!+. To po#e ,ood &ai!+ !+e %le is !+a! !+e b%ye o& e,is!eed la$d $eeds o$ly s+ow !+a! +e elied o$ !+e !i!le !+a! "o#es !+e pope!y. %! !+is is !%e o$ly w+e$ a! !+e !ime o& !+e sale !+e b%ye was %$awae o& a$y ad#ese "laim !o !+e pope!y. O!+ewise !+e law eH%ies !+e b%ye !o e9e"ise a +i,+e de,ee o& dili,e$"e be&oe po"eedi$, wi!+ +is p%"+ase. 8e m%s! e9ami$e $o! o$ly !+e "e!i&i"a!e o& !i!le b%! also !+e selle?s i,+! a$d "apa"i!y !o !a$s&e a$y i$!ees! i$ !+e pope!y. I$ s%"+ a si!%a!io$ !+e b%ye m%s! s+ow !+a! +e e9e"ised easo$able pe"a%!io$ by i$H%ii$, beyo$d !+e &o% "o$es o& !+e !i!le. Faili$, i$ !+ese +e may be deemed a b%ye i$ bad &ai!+. ilinvest evelop(ent !orporation vs. "olden 9aven /e(orial Park, Inc. 7 "olden 9aven /e(orial Park, Inc. vs. ilinvest evelop(ent !orporation, ".R. #o. $%2%+* 7 ".R. #o. $%%+'&. #ove()er $2, +$. Ow$es+ip; by a"H%isi!i#e pes"ip!io$. Ass%mi$, !+a! !+e s%be"! la$d may be a"H%ied by pes"ip!io$ we "a$$o! a""ep! pe!i!io$es? "laim o& a"H%isi!io$ by pes"ip!io$. >e!i!io$es admi!!ed !+a! !+ey +ad o""%pied !+e pope!y by !olea$"e o& !+e ow$e !+eeo&. 8a#i$, made !+is admissio$ !+ey "a$$o! "laim !+a! !+ey +a#e a"H%ied !+e pope!y by pes"ip!io$ %$less !+ey "a$ po#e a"!s o& ep%dia!io$. I! is se!!led !+a! possessio$ i$ ode !o ipe$ i$!o ow$es+ip m%s! be i$ !+e "o$"ep! o& a$ ow$e p%bli" pea"e&%l a$d %$i$!e%p!ed. >ossessio$ $o! i$ !+e "o$"ep! o& ow$e s%"+ as !+e o$e "laimed by pe!i!io$es "a$$o! ipe$ i$!o ow$es+ip by a"H%isi!i#e pes"ip!io$ unless !+e %idi"al ela!io$ is &is! eEpressly repudiated a$d s%"+ ep%dia!io$ +as bee$ "omm%$i"a!ed !o !+e o!+e pa!y. A"!s o& possessoy "+aa"!e e9e"%!ed d%e !o li"e$se o by mee !olea$"e o& !+e ow$e ae i$adeH%a!e &o p%poses o& a"H%isi!i#e pes"ip!io$. >ossessio$ by !olea$"e is $o! ad#ese a$d s%"+ possessoy a"!s $o ma!!e +ow lo$, pe&omed do $o! s!a! !+e %$$i$, o& !+e peiod o& pes"ip!io$.
I$ !+e i$s!a$! "ase pe!i!io$es !o alle,e m%"+!+e less po#e a$y a"! o& @el&i$ ep%dia!io$ s%&&i"ie$! &o !+e o& !+e a"H%isi!i#e pes"ip!io$. A!made mos!$o wee&&o! "a$ &i$d o$ e"od sale by pe!i!io$es a$d A,%s!i$ o& pa!s o& e"2o$i$, !+e pope!y !o pe!i!io$es May$ad a$d ose; b%! !+e same was do$e o$ly i$ 4''0 s+o!ly be&oe espo$de$! &iled a "ase a,ai$s! !+em. 8e$"e !+e ()Byea peiod $e"essay &o !+e opea!io$ o& a"H%isi!#e pes"ip!io$ +ad ye! !o be a!!ai$ed. elfin La(sis, et al. vs. /argarita Se(on ong8e> ".R. #o. $2<+$, 3cto)er +, +$. Ow$es+ip; by a"H%isi!i#e pes"ip!io$. T+e se!!led do"!i$e i$ pope!y law is !+a! $o !i!le !o e,is!e la$d i$ deo,a!io$ o& !+a! o& !+e e,is!eed ow$e s+all be a"H%ied by pes"ip!io$ o ad#ese possessio$. E#e$ i& !+e possessio$ is "o%pled wi!+ payme$! o& eal!y !a9es we "a$$o! apply !+e %le !+a! !+ese a"!s "ombi$ed "o$s!i!%!e poo& o& !+e possesso?s "laim o& !i!le. @espi!e Ma!ias? "laim o& possessio$ si$"e 4'5< Ma!ias be,a$ payi$, eal!y !a9es o$ !+e s%be"! pope!y o$ly i$ 4'K< 1 w+e$
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I$ !+e "ase a! ba TCT =o. 44) w+i"+ epese$!ed poo& o& espo$de$! Abella?s ow$es+ip o& Lo! =o. (0* did $o! "o$!ai$ a$y e$"%mba$"e o a$$o!a!io$ !+a! was !a$s&eed &om i!s !i!le o& oi,i$ 1 TCT =o. 4<0. I! m%s! be e"alled !+a! !+e plai$!i&&s "alled Abella as o$e o& !+ei wi!$esses d%i$, !+e !ial o& !+is "ase. I! is Abella?s %$eb%!!ed !es!imo$y eli"i!ed as a +os!ile wi!$ess &o !+e plai$!i&&s !+a! +e pede"essoBi$Bi$!ees!?s 3ale$"ia?s6 !i!le was "lea$ w+e$ s+e 3Abella6 p%"+ased !+e pope!y. To be s%e !+e b%de$ !o po#e !+a! Abella +ad $o!i"e o& a$y de&e"! i$ !+e !i!le o& +e pede"esso lies wi!+ !+e plai$!i&&s. >lai$!i&&s &ailed !o s%bs!a$!ia!e !+ei "o$!e$!io$. O$ !+e "o$!ay !+ei ow$ e#ide$"e !e$ded !o po#e !+a! Abella was a p%"+ase i$ ,ood &ai!+ o& !+e pope!y. Li2ewise !+ee is $o "o,e$! easo$ o le,al "omp%lsio$ &o espo$de$! Abella !o i$H%ie beyo$d ale$"ia?s !i!le o#e !+e pope!y a! iss%e si$"e !+e la!!e +ad bee$ i$ possessio$ o& Lo! =o. (0* pio !o !+e sale. Se!!led is !+e %le !+a! a b%ye o& eal pope!y i$ possessio$ o& peso$s o!+e !+a$ !+e selle m%s! be way a$d s+o%ld i$#es!i,a!e !+e i,+!s o& !+ose i$ possessio$ &o wi!+o%! s%"+ i$H%iy !+e b%ye "a$ +adly be e,aded as a b%ye i$ ,ood &ai!+ a$d "a$$o! +a#e a$y i,+! o#e !+e pope!y. As poi$!ed o%! by !+e assailed Co%! o& Appeals? @e"isio$ ale$"ia +ad bee$ o""%pyi$, !+e pope!y pio !o i!s sale !o espo$de$! Abella. 8eei$ pe!i!io$es wee $e#e i$ possessio$ o& !+e pope!y &om !+e #ey s!a! $o did !+ey +a#e a$y idea !+a! !+ey wee e$!i!led !o !+e &%i!s o& !+e pope!y $o! %$!il "oBpe!i!io$e Meleia$a Sa#es wo!e +e ela!i#es "oB pe!i!io$es i$ !+is "ase abo%! !+e possibili!y o& +a#i$, a "laim !o !+e pope!y. =ei!+e does !+e plai$!i&&s? i$sis!e$"e !+a! E9+ibi!s /G7 a$d /87 3!+e deeds o& sale e9e"%!ed i$ &a#o o& ale$"ia6 wee #oid s%ppo! !+ei !+eoy !+a! Abella is a p%"+ase i$ bad &ai!+. To be,i$ wi!+ we a,ee wi!+ !+e Co%! o& Appeals? %li$, !+a! !+e p%po!ed ie,%lai!ies i$ E9+ibi!s /G7 a$d /87 elied %po$ by !+e !ial "o%! +adly s%&&i"e !o deem !+e said "o$!a"!s as $%ll a$d #oid. T+ee is $o $eed !o epea! !+e Co%! o& Appeals? "ompe+e$si#e a$d ap! dis"%ssio$s o$ !+is poi$! +ee. W+a! m%s! be +i,+li,+!ed +owe#e is !+e &a"! !+a! Abella +ad $o pa!i"ipa!io$ i$ !+e e9e"%!io$ o& E9+ibi!s /G7 a$d /87 w+i"+ wee si,$ed by !+e pa!ies !+ee!o w+e$ s+e was #ey yo%$,. Li2e a$y s!a$,e !o !+e said !a$sa"!io$s i! was easo$able &o Abella !o ass%me !+a! !+ese p%bli" do"%me$!s wee w+a! !+ey p%po! !o be o$ !+ei &a"e i$ !+e abse$"e o& a$y "i"%ms!a$"e !o lead +e !o belie#e o!+ewise. A p%"+ase i$ ,ood &ai!+ is o$e w+o b%ys pope!y wi!+o%! $o!i"e !+a! some o!+e peso$ +as a i,+! !o o i$!ees! i$ s%"+ pope!y a$d pays i!s &ai pi"e be&oe +e +as $o!i"e o& !+e ad#ese "laims a$d i$!ees! o& a$o!+e peso$ i$ !+e same pope!y. Clealy s%o%$di$, p%"+ase!+e &o &a"!%al #al%e o"i"%ms!a$"es a p%"+ase i$ ,ood &ai!+. espo$de$! Abella?s a"H%isi!io$ o& Lo! =o. (0* ma2es +e a$ i$$o"e$! Fi$ally o$ !+e iss%e o& w+e!+e o $o! pe!i!io$es i$ !+e emo!e possibili!y !+a! !+ey ae "oBow$es o& Lo! =o. (0* ae baed &om asse!i$, !+ei "laims o#e !+e same be"a%se o& es!oppel by la"+es pe!i!io$es a,%e !+a! !+ey ae $o! ,%il!y o& %$easo$able a$d %$e9plai$ed delay i$ asse!i$, !+ei i,+!s "o$sidei$, !+a! !+ey &iled !+e a"!io$ wi!+i$ a easo$able !ime a&!e !+ei dis"o#ey o& !+e alle,edly &i"!i!io%s deeds o& sale w+i"+ e#i$"ed Lo! =o. (0*?s !a$s&e o& ow$es+ip !o ale$"ia i$ 4'0). T+ey mai$!ai$ !+a! !+e delay i$ !+e dis"o#ey o& !+e sim%la!ed a$d &i"!i!io%s deeds was d%e !o !+e &a"! !+a! Es"olas!i"o Sa#es wi!+ spo%se ale$"ia "ommi!!ed !+e a"!s s%ep!i!io%sly by !a2i$, ad#a$!a,e o& !+e la"2 o& ed%"a!io$ o& plai$!i&&s? as"e$da$!s. he 9eirs of Ro(ana Saves, na(ely: idela Ala(aida, et al. vs. he 9eirs of ?scolastico Saves, na(ely: ?nriqueta chave58A)ella, et al.> ".R. #o. $&+%'', 3cto)er ', +$. >ope!y; p%"+ase i$ ,ood &ai!+. A peso$ deali$, wi!+ e,is!eed la$d +as a i,+! !o ely o$ !+e Toe$s "e!i&i"a!e o& !i!le a$d !o dispe$se wi!+ !+e $eed o& i$H%ii$, &%!+e e9"ep! w+e$ !+e pa!y +as a"!%al 2$owled,e o& &a"!s a$d "i"%ms!a$"es !+a! wo%ld impel a easo$ably "a%!io%s ma$ !o ma2e s%"+ i$H%iy o w+e$ !+e p%"+ase +as 2$owled,e o& a de&e"! o !+e la"2 o& !i!le i$ +is #e$do o s!a!%s o& !+e !i!le o& !+e pope!y i$ li!i,a!io$. T+e pese$"e o& a$y!+i$, w+i"+ e9"i!es o ao%ses s%spi"io$ s+o%ld !+e$ pomp! !+e #e$dee !o loo2 beyo$d !+e "e!i&i"a!e a$d i$#es!i,a!e !+e !i!le o& !+e #e$do appeai$, o$ !+e &a"e o& said "e!i&i"a!e. O$e w+o &alls wi!+i$ !+e e9"ep!io$ "a$ $ei!+e be de$omi$a!ed a$ i$$o"e$! p%"+ase &o #al%e $o a p%"+ase i$ ,ood &ai!+; a$d +e$"e does $o! mei! !+e po!e"!io$ o& !+e law. A &o,ed deed "a$ le,ally be !+e oo! o& a #alid !i!le w+e$ a$ i$$o"e$! p%"+ase &o #al%e i$!e#e$es. Fo a pospe"!i#e b%ye o& a pope!y e,is!eed %$de !+e Toe$s sys!em $eed $o! ,o beyo$d !+e !i!le espe"ially w+e$ +e +as $o $o!i"e o& a$y bad,e o& &a%d o de&e"! !+a! wo%ld pla"e +im o$ ,%ad. 8is i,+!s ae !+%s e$!i!led !o &%ll po!e"!io$ &o !+e law "o$sides +im a$ i$$o"e$! p%"+ase. !a(per Realty !orp. vs. /aria #ena Pao8Reyes, represented )y her Attorney8in8fact ?liseo B. Ballao, et al.> ".R. #o. $2-&*<. 3cto)er ', +$. >ope!y; i,+! o& possessio$. T+e o$ly iss%e i$ a$ ee"!me$! "ase is !+e p+ysi"al possessio$ o& eal pope!y ‒ possessio$ de facto a$d $o! possessio$ de ure. We %le %po$ !+e iss%e o& ow$es+ip o$ly !o de!emi$e w+o be!wee$ !+e pa!ies +as !+e be!!e i +! o& ossessio$. As !+e law $ow s!a$ds i$ a$ e e"!me$! s%i! !+e %es!io$ o& ow$es+i ma be o#isio$all %led
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pe#ail o#e !+a! o& =ie#es &o !+e simple easo$ !+a! =ie#es is !+e e,is!eed ow$e o& !+e s%be"! pope!y a$d !+e alle,ed deed o& sale w+i"+ =ie#es disp%!es emai$s %$e,is!eed. Al!+o%,+ i! is !%e !+a! !+e spo%ses el!a$ a$d $o! =ie#es wee i$ pio p+ysi"al possessio$ o& !+e s%be"! pope!y !+is a,%me$! "a$$o! +old wa!e as pio p+ysi"al possessio$ is ma!eial o$ly i$ &o"ible e$!y "ases. A$y H%es!io$ e,adi$, !+e #alidi!y o& =ie#es? !i!le "a$ o$ly be assailed i$ a$ a"!io$ e9pessly i$s!i!%!ed &o !+a! p%pose. A "e!i&i"a!e o& !i!le s+all $o! be s%be"! !o "olla!eal a!!a"2. O% %li$, i$ !+e pese$! "ase s+all $o! ba a$ a"!io$ be!wee$ !+e same pa!ies &o !+e de!emi$a!io$ o& ow$es+ip o& !+e s%be"! pope!y. Spouses Ida #ieves Beltran and ;ose Beltran vs. /s. Anita R. #ieves, etc.> ".R. #o. $2&&'$, 3cto)er +, +$. Ow$es+ip; pes"ip!io$; eH%ieme$! o& possessio$; "ompomise a,eeme$! does $o! "o$s!i!%!e /possessio$7. >es"ip!io$ as a mode o& a"H%ii$, ow$es+ip a$d o!+e eal i,+!s o#e immo#able pope!y is "o$"e$ed wi!+ lapse o& !ime i$ !+e ma$$e a$d %$de "o$di!io$s laid dow$ by law $amely !+a! !+e possessio$ s+o%ld be i$ !+e "o$"ep! o& a$ ow$e p%bli" pea"e&%l %$i$!e%p!ed a$d ad#ese. T+e pa!y w+o asse!s ow$es+ip by ad#ese possessio$ m%s! po#e !+e pese$"e o& !+e esse$!ial eleme$!s o& a"H%isi!i#e pes"ip!io$. A"H%isi!i#e pes"ip!io$ o& eal i,+!s may be odi$ay o e9!aodi$ay. Odi$ay a"H%isi!i#e pes"ip!io$ eH%ies possessio$ i$ ,ood &ai!+ a$d wi!+ %s! !i!le &o !e$ yeas. I$ e9!aodi$ay pes"ip!io$ ow$es+ip a$d o!+e eal i,+!s o#e immo#able pope!y ae a"H%ied !+o%,+ %$i$!e%p!ed ad#ese possessio$ &o !+i!y yeas wi!+o%! $eed o& !i!le o o& ,ood &ai!+. >ossessio$ /i$ ,ood &ai!+7 "o$sis!s i$ !+e easo$able belie& !+a! !+e peso$ &om w+om !+e !+i$, is e"ei#ed +as bee$ !+e ow$e !+eeo& a$d "o%ld !a$smi! +is ow$es+ip. T+ee is /%s! !i!le7 w+e$ !+e ad#ese "laima$! "ame i$!o possessio$ o& !+e pope!y !+o%,+ o$e o& !+e modes e"o,$i-ed by law &o !+e a"H%isi!io$ o& ow$es+ip o o!+e eal i,+!s b%! !+e ,a$!o was $o! !+e ow$e o "o%ld $o! !a$smi! a$y i,+!. T+e S%peme Co%! &o%$d !+a! !+e Co%! o& Appeals mis!a2e$ly elied %po$ a "ompomise a,eeme$! !o "o$"l%de !+a! !+e espo$de$!s wee possessos i$ ,ood &ai!+ a$d wi!+ %s! !i!le w+o a"H%ied !+e pope!y !+o%,+ odi$ay a"H%isi!i#e pes"ip!io$. T+e mai$ p%pose o& a "ompomise a,eeme$! is !o p%! a$ e$d !o li!i,a!io$ be"a%se o& !+e %$"e!ai$!y !+a! may aise &om i!. Re"ipo"al "o$"essio$s ae !+e #ey +ea! a$d li&e o& e#ey "ompomise a,eeme$!. y !+e $a!%e o& a "ompomise a,eeme$! i! bi$,s !+e pa!ies !o a,ee !o some!+i$, !+a! $ei!+e o& !+em may a"!%ally wa$! b%! &o !+e pea"e i! will bi$, !+em wi!+o%! a po!a"!ed li!i,a!io$. T+%s $o i,+! "a$ aise &om !+e "ompomise a,eeme$! be"a%se !+e pa!ies e9e"%!ed !+e same o$ly !o b%y pea"e a$d !o wi!e finis !o !+e "o$!o#esy; i! did $o! "ea!e o !a$smi! ow$es+ip i,+!s o#e !+e s%be"! pope!y. I$ e9e"%!i$, !+e "ompomise a,eeme$! !+e pa!ies i$ e&&e"! meely e#e!ed !o !+ei si!%a!io$ be&oe !+e ealie "i#il "ase was &iled. =ei!+e "a$ !+e espo$de$!s be$e&i! &om !+e "o$!a"! o& sale o& !+e s%be"! pope!y !o s%ppo! !+ei "laim o& possessio$ i$ ,ood &ai!+ a$d wi!+ %s! !i!le. I$ !+e #i$!a,e "ase D@i,es!e?s =o!e: Use o& wod /#i$!a,e7 !o des"ibe a "ase !+e po$e$!e?s $o! mi$e o& Leung =ee v. .L. Strong /achinery !o. and illia(son !+e "o%! +ad $o!ed !+a! /DO$e w+o p%"+ases eal es!a!e wi!+ 2$owled,e o& a de&e"! o la"2 o& !i!le i$ +is #e$do "a$$o! "laim !+a! +e +as a"H%ied !i!le !+ee!o i$ ,ood &ai!+ as a,ai$s! !+e !%e ow$e o& !+e la$d o o& a$ i$!ees! !+eei$; a$d !+e same %le m%s! be applied !o o$e w+o +as 2$owled,e o& &a"!s w+i"+ s+o%ld +a#e p%! +im %po$ s%"+ i$H%iy a$d i$#es!i,a!io$ as mi,+! be $e"essay !o a"H%ai$! +im wi!+ !+e de&e"!s i$ !+e !i!le o& +is #e$do.7 Good &ai!+ o !+e wa$! o& i! "a$ be as"e!ai$ed o$ly &om !+e a"!s o& !+e o$e "laimi$, i! as i! is a "o$di!io$ o& mi$d !+a! "a$ o$ly be %d,ed by a"!%al o &a$"ied !o2e$ o si,$s. I$ !+e pese$! "ase $o disp%!e e9is!s !+a! Robe!o wi!+o%! =i"omedesa?s 2$owled,e o pa!i"ipa!io$ bo%,+! !+e s%be"! pope!y o$ Sep!embe 4 4'KK o d%i$, !+e pe$de$"y o& Ci#il Case =o. B55. Robe!o !+ee&oe +ad a"!%al 2$owled,e !+a! ela"+o?s "laim !o ow$es+ip o& !+e s%be"! pope!y as Ga#i$o?s p%po!ed +ei was disp%!ed be"a%se +e 3Robe!o6 a$d =i"omedesa wee !+e de&e$da$!s i$ Ci#il Case =o. B55. Robe!o e#e$ admi!!ed !+a! +e bo%,+! !+e s%be"! pope!y &om ela"+o !o /a#oid a$y !o%ble.7 8e !+%s "a$$o! "laim !+a! +e a"!ed i$ ,ood &ai!+ %$de !+e belie& !+a! !+ee was $o de&e"! o disp%!e i$ !+e !i!le o& !+e #e$do ela"+o. =o! bei$, a possesso i$ ,ood &ai!+ a$d wi!+ %s! !i!le !+e !e$Byea peiod eH%ied &o odi$ay a"H%isi!i#e pes"ip!io$ "a$$o! apply i$ Robe!o?s &a#o. E#e$ !+e !+i!yByea peiod %$de e9!aodi$ay a"H%isi!i#e pes"ip!io$ +as $o! bee$ me! be"a%se o& !+e espo$de$!s? "laim !o +a#e bee$ i$ possessio$ i$ !+e "o$"ep! o& ow$e o& !+e s%be"! pope!y &o o$ly !we$!yB &o% eas &om !+e !ime !+e s%b e"! o e! was !a9 de"laed i$ 4' < !o !+e !ime o& !+e &ili$ o& !+e "om lai$! i$ 4''0. Rosario
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i,+!s by &aili$, !o asse! a$y ad#ese "laim o#e !+e pope!y o dema$d a$y s+ae o& i!s &%i!s &o ma$y yeas. =o! %$li2e !+ei pede"essos pe!i!io$es $e#e i$!eposed a$y "+alle$,e !o ale$"ia?s "o$!i$%ed possessio$ %$de !i!le o& ow$es+ip o#e Lo! =o. (0* e#e si$"e !+e e$!ie pope!y was sold !o +e i$ 4'e!i!io$es "o$!e$d !+a! !+e delay is a!!ib%!able !o !+e s%ep!i!io%s ma$$e by w+i"+ ale$"ia a"H%ied Lo! =o. (0* &om !+ei pede"essosBi$Bi$!ees! b%! o$ !+is poi$! pe!i!io$e?s e#ide$"e ,a#ely la"2s "edibili!y a$d wei,+! as s+ow$ by !+e e"ods. I$s!ead !+e e#ide$"e !+%s pese$!ed by bo!+ pa!ies as &o%$d by !+e Co%! o& Appeals wo%ld lea$ !owads !+e "o$"l%sio$ !+a! pe!i!io$es? i$a"!io$ &o !+e pas! so ma$y yeas belies a$y pese$! "o$#i"!io$ o$ !+ei pa! !+a! !+ey +a#e a$y e9is!i$, i$!ees! o#e !+e pope!y a! all. T+%s e#e$ i& we ,a$! !+a! pe!i!io$es ae "oBow$es o& !+e pope!y a! iss%e i! is o$ly &ai a$d easo$able &o !+is Co%! !o apply !+e eH%i!able pi$"iple o& es!oppel by la"+es a,ai$s! !+em i$ ode !o a#oid a$ i$%s!i"e !o espo$de$! Abella w+o is !+e i$$o"e$! p%"+ase &o #al%e i$ !+is "ase. he 9eirs of Ro(ana Saves, na(ely: idela Ala(aida, et al. vs. he 9eirs of ?scolastico Saves, na(ely: ?nriqueta chave58A)ella, et al.; ".R. #o. $&+%'', 3cto)er ', +$. >es"ip!io$; eal a"!io$s. A eal a"!io$ is o$e w+ee !+e plai$!i&& see2s !+e e"o#ey o& eal pope!y o as i$di"a!ed i$ w+a! is $ow R%le < Se"!io$ 4 o& !+e R%les o& Co%! a eal a"!io$ is a$ a&!o$ aff"&!$* &!&l" &o o e"o#ey o& possessio$ of #"al #o"#&-. A$ a"!io$ &o H%ie!i$, o& !i!le !o eal pope!y s%"+ as Ci#il Case =o. <<5* is i$d%bi!ably a eal a"!io$. A!i"le 44<4 o& !+e Ci#il Code plai$ly po#ides !+a! eal a"!io$s o#e immo#ables pes"ibe af&"# &'!#&- -"a#s. @oQa @eme!ia died i$ 4'K< !a$s&ei$, by s%""essio$ +e !i!le !o !+e !wo pa"els o& la$d !o +e o$ly +ei idal. Teo&ilo !+o%,+ A!!y. Cabildo &iled a pe!i!io$ &o e"o$s!i!%!io$ o& !+e "e!i&i"a!es o& !i!le "o#ei$, said pope!ies i$ 1/9. T+is is !+e &is! palpable display o& Teo&ilo?s ad#ese "laim !o !+e same pope!ies s%pposedly also as @oQa @eme!ia?s o$ly +ei. W+e$ idal a$d AIMUT8 i$s!i!%!ed Ci#il Case =o. <<5* i$ 1//9 o$ly 20 -"a#s +ad passed a$d !+e pes"ip!i#e peiod &o &ili$, a$ a"!io$ &o H%ie!i$, o& !i!le +ad $o! ye! pes"ibed. =e#e!+eless !+e Co%! $o!es !+a! A!i"le 4<44 o& !+e Ci#il Code also "lealy s!a!es !+a! !+e ()Byea pes"ip!i#e peiod &o eal a"!io$s o#e immo#ables is %!&'o,& #":,!" !o w+a! is es!ablis+ed &o !+e a"H%isi!io$ o& ow$es+ip a$d o!+e eal i,+!s by pes"ip!io$. T+%s !+e Co%! m%s! also loo2 i$!o !+e a"H%isi!i#e pes"ip!io$ peiods o& ow$es+ip a$d o!+e eal i,+!s. A"H%isi!i#e pes"ip!io$ o& domi$io$ a$d eal i,+!s may be odi$ay o e9!aodi$ay. O#!$a#- a;,!s!&!3" #"s#!&!o$ eH%ies possessio$ o& !+i$,s i$ ,ood &ai!+ a$d wi!+ %s! !i!le &o !+e !ime &i9ed by law. I$ !+e "ase o& ow$es+ip a$d o!+e eal i,+!s o#e immo#able pope!y !+ey ae a"H%ied by odi$ay pes"ip!io$ !+o%,+ oss"ss!o$ of 10 -"a#s. LA=@TRA@E "a$$o! i$sis! o$ !+e appli"a!io$ o& !+e 4)Byea odi$ay a"H%isi!i#e pes"ip!io$ peiod si$"e i! "a$$o! be "o$sideed a possesso i$ ,ood &ai!+. T+e ,ood &ai!+ o& !+e possesso "o$sis!s i$ !+e easo$able belie& !+a! !+e peso$ &om w+om +e e"ei#ed !+e !+i$, was !+e ow$e !+eeo& a$d "o%ld !a$smi! +is ow$es+ip. Si$"e !+e odi$ay a"H%isi!i#e pes"ip!io$ peiod o& 4) yeas does $o! apply !o LA=@TRA@E !+e$ !+e Co%! !%$s i!s a!!e$!io$ !o !+e "4&#ao#!$a#a;,!s!&!3" #"s#!&!o$ "#!o o& <0 -"a#s se! by A!i"le 44(K o& !+e Ci#il Code w+i"+ po#ides !+a! ow$es+ip a$d o!+e eal i,+!s o#e immo#ables also pes"ibe !+o%,+ %$i$!e%p!ed ad#ese possessio$ !+eeo& &o !+i!y yeas wi!+o%! $eed o& !i!le o o& ,ood &ai!+. LA=@TRA@E ad#esely possessed !+e s%be"! pope!ies $o ealie !+a$ 1//5 w+e$ i! bo%,+! !+e same &om Teo&ilo a$d Ci#il Case =o. <<5* was aleady i$s!i!%!ed &%o -"a#s la!e i$ 1//9. LA=@TRA@E "a$$o! !a"2 i!s ad#ese possessio$ o& !+e !wo pa"els o& la$d !o !+a! o& Teo&ilo "o$sidei$, !+a! !+ee is $o poo& !+a! !+e la!!e w+o is aleady esidi$, i$ !+e U.S.A. ad#esely possessed !+e pope!ies a! all. Repu)lic of the Philippines 0s. 9on. /a(indiara P. /angotara, in his capacity as Presiding ;udge of the Regional rial !ourt, Branch $, Iligan !ity, Lanao del #orte, and /aria !ristina ertili5er !orporation, and the Philippines #ational Bank7Land rade Realty !orporation 0s. #ational Po@er !orporation and #ational rans(ission !orporation MranscoN7#ational Po@er !orporation 0s. 9on. !ourt of Appeals MSpecial @enty8hird ivision, !agayan de 3ro !ityN and Land rade Realty !orporation7#ational rans(ission !orporation 0s. 9on. !ourt of Appeals MSpecial @enty8hird ivision, !agayan de 3ro !ityN and Land rade Realty !orporation, ".R. #o. $2<2&7".R. #o. $2&&7".R. #os. $2<<&&8&'7".R. #o. $2<*$7".R. #os. $2<&'<8'*7".R. #o. $2%22-7".R. #o. $2%%-*.,;uly 2, +$
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T+e pes"ip!i#e peiod &o !+e e"o$#eya$"e o& &a%d%le$!ly e,is!eed eal pope!y is 4) yeas e"2o$ed &om !+e da!e o& !+e iss%a$"e o& !+e "e!i&i"a!e o& !i!le i& !+e plai$!i&& is $o! i$ possessio$ b%! impes"ip!ible i& +e is i$ possessio$ o& !+e pope!y. T+%s o$e w+o is i$ a"!%al possessio$ o& a pie"e o& la$d "laimi$, !o be !+e ow$e !+eeo& may wai! %$!il +is possessio$ is dis!%bed o +is !i!le is a!!a"2ed be&oe !a2i$, s!eps !o #i$di"a!e +is i,+!.As i! is pe!i!io$es? a"!io$ &o e"o$#eya$"e is impes"ip!ible. Anthony 3rduKa, et al. vs. ?duardo ;. uente)ella, et al., ".R. #o. $2'%*$, ;une +-, +$. >ope!y; %ye i$ Good Fai!+; >ossessio$. >e!i!io$e "a$$o! be "o$sideed a b%ye i$ ,ood &ai!+ be"a%se espo$de$! was aleady i$ possessio$ o& !+e s%be"! pope!y a! !+e !ime Ma. Imelda Eloisa Gal#a$ "o$#eyed +e i,+!s o#e !+e pope!y !o pe!i!io$e. I! is se!!led %le !+a! a b%ye o& eal pope!y !+a! is i$ !+e possessio$ o& a peso$ o!+e !+a$ !+e selle m%s! be way a$d s+o%ld i$#es!i,a!e !+e i,+!s o& !+e peso$ i$ possessio$. O!+ewise wi!+o%! s%"+ i$H%iy !+e b%ye "a$ +adly be e,aded as a b%ye i$ ,ood &ai!+. Si$"e espo$de$! was aleady i$ possessio$ o& !+e s%be"! pope!y a! !+e !ime Ma. Imelda Eloisa Gal#a$ !a$s&eed +e i,+!s o#e !+e pope!y !o pe!i!io$e pe!i!io$e was obli,ed !o i$#es!i,a!e espo$de$!?s i,+!s o#e !+e pope!y #isBB#is !+a! o& !+e selle. >e!i!io$e "a$$o! be "o$sideed a b%ye i$ ,ood &ai!+ &o +e &ail%e !o ma2e s%"+ i$H%iy. Lirio A. eanon, represented )y Attorney8in8act, ;ocelyn . Asor vs. /arfelina !. /ag8a)o, ".R. #o. $2-&*-, ;une +-, +$ . See also e$!y %$de Sale; I$$o"e$! >%"+ase &o al%e. >ope!y; %ye i$ Good Fai!+; S!a$dad o& Good Fai!+. See e$!y %$de Sale; I$$o"e$! >%"+ase &o al%e. >ope!y; Ow$es+ip; >es"ip!io$. I$ !+e "ase a! ba espo$de$!s asse! !+a! !+ei pede"essoBi$Bi$!ees! >edo i!ale- +ad o""%pied a$d possessed !+e s%be"! lo! as ealy as 4'(). I$ 4'< espo$de$! Maio Ebio se"%ed a pemi! &om !+e lo"al ,o#e$me$! o& >aaQaH%e &o !+e "o$s!%"!io$ o& !+ei &amily dwelli$, o$ !+e said lo!. I$ 4' >edo e9e"%!ed a$ a&&ida#i! o& possessio$ a$d o""%pa$"y allowi$, +im !o de"lae !+e pope!y i$ +is $ame &o !a9a!io$ p%poses. C%io%sly i! was also i$ 4' w+e$ G%aa$!eed 8omes I$". !+e e,is!eed ow$e o& Road Lo! =o. 0 3/RL 0 ″6 w+i"+ adoi$s !+e la$d o""%pied by !+e espo$de$!s do$a!ed RL 0 !o !+e lo"al ,o#e$me$! o& >aaQaH%e. Fom !+ese &i$di$,s o& &a"! by bo!+ !+e !ial "o%! a$d !+e Co%! o& Appeals o$ly o$e "o$"l%sio$ "a$ be made: !+a! &o moe !+a$ () yeas $ei!+e G%aa$!eed 8omes I$". $o !+e lo"al ,o#e$me$! o& >aaQaH%e i$ i!s "opoa!e o pi#a!e "apa"i!y so%,+! !o e,is!e !+e a""e!ed po!io$. U$do%b!edly espo$de$!s ae deemed !o +a#e a"H%ied ow$es+ip o#e !+e s%be"! pope!y !+o%,+ pes"ip!io$. Respo$de$!s "a$ asse! s%"+ i,+! despi!e !+e &a"! !+a! !+ey +a#e ye! !o e,is!e !+ei !i!le o#e !+e said lo!. I! m%s! be emembeed !+a! !+e p%pose o& la$d e,is!a!io$ is $o! !+e a"H%isi!io$ o& la$ds b%! o$ly !+e e,is!a!io$ o& !i!le w+i"+ !+e appli"a$! aleady possessed o#e !+e la$d. Re,is!a!io$ was $e#e i$!e$ded as a mea$s o& a"H%ii$, ow$es+ip. A de"ee o& e,is!a!io$ meely "o$&ims b%! does $o! "o$&e ow$es+ip. 3ffice of the !ity /ayor of ParaKaque !ity, et al. vs. /ario . ?)io and 9is !hildren79eirs na(ely, Arturo 0. ?)io, ?duardo, et al., ".R. #o. $2%*$$. ;une +<, +$. >ope!y; Ow$es+ip; Re,is!a!io$ @oes =o! Co$&e Ti!le. U$do%b!edly espo$de$!s ae deemed !o +a#e a"H%ied ow$es+ip o#e !+e s%be"! pope!y !+o%,+ pes"ip!io$. Respo$de$!s "a$ asse! s%"+ i,+! despi!e !+e &a"! !+a! !+ey +a#e ye! !o e,is!e !+ei !i!le o#e !+e said lo!. I! m%s! be emembeed !+a! !+e p%pose o& la$d e,is!a!io$ is $o! !+e a"H%isi!io$ o& la$ds b%! o$ly !+e e,is!a!io$ o& !i!le w+i"+ !+e appli"a$! aleady possessed o#e !+e la$d. Re,is!a!io$ was $e#e i$!e$ded as a mea$s o& a"H%ii$, ow$es+ip. A de"ee o& e,is!a!io$ meely "o$&ims b%! does $o! "o$&e ow$es+ip. 3ffice of the !ity /ayor of ParaKaque !ity, et al. vs. /ario . ?)io and 9is !hildren79eirs na(ely, Arturo 0. ?)io, ?duardo, et al., ".R. #o. $2%*$$, ;une +<, +$. >ope!y; ow$es+ip o& la$d. We +old !+a! as be!wee$ !+e pe!i!io$e a$d !+e espo$de$! i! is !+e pe!i!io$e w+o +as !+e be!!e "laim o !i!le !o !+e s%be"! pope!y. W+ile !+e espo$de$! meely elied o$ +e !a9 de"laa!io$ pe!i!io$e was able !o po#e a"!%al possessio$ o& !+e s%be"! pope!y "o%pled wi!+ +is !a9 de"laa!io$. We +a#e %led i$ se#eal "ases !+a! possessio$ w+e$ "o%pled wi!+ a !a9 de"laa!io$ is a wei,+!y e#ide$"e o& ow$es+ip. I! "e!ai$ly is moe wei,+!y a$d pepo$dea$! !+a$ a !a9 de"laa!io$ alo$e. T+e pepo$dea$"e o& e#ide$"e is !+ee&oe "lealy i$ &a#o o& pe!i!io$e pa!i"%laly "o$sidei$, !+a! as !+e a"!%al possesso %$de "laim o& ow$es+ip +e e$oys !+e pes%mp!io$ o& ow$es+ip. Moeo#e se!!led is !+e pi$"iple !+a! a pa!y see2i$, !o e"o#e eal pope!y m%s! ely o$ !+e s!e$,!+ o& +e "ase a!+e !+a$ o$ !+e wea2$ess o& !+e de&e$se. T+e b%de$ o& poo& es!s o$ !+e pa!y w+o asse!s !+e a&&ima!i#e o& a$ iss%e. Fo +e w+o elies %po$ !+e e9is!e$"e o& a &a"! s+o%ld be "alled %po$ !o po#e !+a! &a"!. 8a#i$, &ailed !o dis"+a,e +e b%de$ !o po#e +e a&&ima!i#e alle,a!io$s we &i$d !+a! !+e !ial "o%! i,+!&%lly dismissed espo$de$!?s "omplai$!. /odesto Palali vs. ;uliet A@isan, represented )y her Attorney8in8fact "regorio A@isan, ".R. #o. $&%<%&, e)ruary $+, +$ ?
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ased o$ A!i"le 5(0 o& !+e Ci#il Code !+e espo$de$! is !+e pe&eed possesso be"a%se be$e&i!i$, &om +is &a!+e?s !a9 de"laa!io$ o& !+e s%be"! eal!y si$"e 4'4 +e +as bee$ i$ possessio$ !+eeo& &o a lo$,e peiod. O$ !+e o!+e +a$d pe!i!io$es a"H%ied oi$! possessio$ o$ly some!ime i$ 4'5. Arsenio . 3legario, et al. vs. Pedro !. /ari, represented )y Lilia !. /ari8!a()a, ".R. #o. $*2-&$, ece()er $*, +-. >ope!y; p%"+ase i$ ,ood &ai!+. A p%"+ase i$ ,ood &ai!+ is o$e w+o b%ys !+e pope!y o& a$o!+e wi!+o%! $o!i"e !+a! some o!+e peso$ +as a i,+! !o o i$!ees! i$ s%"+ pope!y a$d pays a &%ll a$d &ai pi"e &o !+e same a! !+e !ime o& s%"+ p%"+ase o be&oe +e +as $o!i"e o& !+e "laim o i$!ees! o& some o!+e peso$ i$ !+e pope!y. To es!ablis+ +is s!a!%s as a b%ye &o #al%e i$ ,ood &ai!+ a peso$ deali$, wi!+ la$d e,is!eed i$ !+e $ame o& a$d o""%pied by !+e selle $eed o$ly s+ow !+a! +e elied o$ !+e &a"e o& !+e selle?s "e!i&i"a!e o& !i!le. %! &o a peso$ deali$, wi!+ la$d e,is!eed i$ !+e $ame o& a$d o""%pied by !+e selle w+ose "apa"i!y !o sell is es!i"!ed s%"+ as by A!i"les 4 a$d 4K( o& !+e Ci#il Code o A!i"le 4*< o& !+e Family Code +e m%s! s+ow !+a! +e i$H%ied i$!o !+ela!!e?s "apa"i!y !o sell i$ ode !o es!ablis+ +imsel& as a b%ye &o #al%e i$ ,ood &ai!+. Patronica Ravina and ilfredo Ravina vs.. /ary Ann P. 0illa A)rille, for )ehalf of Ingrid 1Lyn P. 0illa A)rille, et al., ".R. #o. $'2%, 3cto)er $', +-. >ope!y; la"+es. La"+es is de&i$ed as !+e &ail%e !o asse! a i,+! &o a$ %$easo$able a$d %$e9plai$ed le$,!+ o& !ime waa$!i$, a pes%mp!io$ !+a! !+e pa!y e$!i!led !o asse! i! +as ei!+e aba$do$ed o de"li$ed !o asse! i!. T+is eH%i!able de&e$se is based %po$ ,o%$ds o& p%bli" poli"y w+i"+ eH%ies !+e dis"o%a,eme$! o& s!ale "laims &o !+e pea"e o& so"ie!y. %a$a sold !+e pope!y !o !+e Spo%ses Cee$o i$ 4'K) a$d si$"e !+e$ +a#e possessed !+e pope!y pea"e&%lly a$d p%bli"ly wi!+o%! a$y opposi!io$ &om pe!i!io$es. W+ile pe!i!io$es "laim !+a! !+ey 2$ew abo%! !+e sale o$ly i$ 4'0) ye! !+ey did $o! !a2e a$y a"!io$ !o e"o#e !+e same a$d wai!ed %$!il 4''' !o &ile a s%i! wi!+o%! o&&ei$, a$y e9"%se &o s%"+ delay. Re"ods do $o! s+ow a$y %s!i&iable easo$ &o pe!i!io$es? i$a"!io$ &o a lo$, !ime i$ asse!i$, w+a!e#e i,+!s !+ey +a#e o#e !+e pope!y ,i#e$ !+e p%bli"i!y o& espo$de$!s? "o$d%"! as ow$es o& !+e pope!y. ;ulita 0. I(uan, et al. vs. ;uanito !ereno, et al., ".R. #o. $'2--&, Septe()er $$, +-. >ope!y; pes"ip!io$. >es"ip!io$ is a$o!+e mode o& a"H%ii$, ow$es+ip a$d o!+e eal i,+!s o#e immo#able pope!y. I! is "o$"e$ed wi!+ lapse o& !ime i$ !+e ma$$e a$d %$de "o$di!io$s laid dow$ by law $amely !+a! !+e possessio$ s+o%ld be i$ !+e "o$"ep! o& a$ ow$e p%bli" pea"e&%l %$i$!e%p!ed a$d ad#ese. >ossessio$ is ope$ w+e$ i! is pa!e$! #isible appae$! $o!oio%s a$d $o! "la$des!i$e. I! is "o$!i$%o%s w+e$ %$i$!e%p!ed %$bo2e$ a$d $o! i$!emi!!e$! o o""asio$al;e9"l%si#e w+e$ !+e ad#ese possesso "a$ s+ow e9"l%si#e domi$io$ o#e !+e la$d a$d a$ appopia!io$ o& i! !o +is ow$ %se a$d be$e&i!; a$d $o!oio%s w+e$ i! is so "o$spi"%o%s !+a! i! is ,e$eally 2$ow$ a$d !al2ed o& by !+e p%bli" o !+e people i$ !+e $ei,+bo+ood. T+e pa!y w+o asse!s ow$es+ip by ad#ese possessio$ m%s! po#e !+e pese$"e o& !+e esse$!ial eleme$!s o& a"H%isi!i#e pes"ip!io$. A"H%isi!i#e pes"ip!io$ o& eal i,+!s may be odi$ay o e9!aodi$ay. Odi$ay a"H%isi!i#e pes"ip!io$ eH%ies possessio$ i$ ,ood &ai!+ a$d wi!+ %s! !i!le &o !e$ yeas. I$ e9!aodi$ay pes"ip!io$ ow$es+ip a$d o!+e eal i,+!s o#e immo#able pope!y ae a"H%ied !+o%,+ %$i$!e%p!ed ad#ese possessio$ &o !+i!y yeas wi!+o%! $eed o& !i!le o o& ,ood &ai!+. T+e ,ood &ai!+ o& !+e possesso "o$sis!s i$ !+e easo$able belie& !+a! !+e peso$ &om w+om +e e"ei#ed !+e !+i$, was !+e ow$e !+eeo& a$d "o%ld !a$smi! +is ow$es+ip. Fo p%poses o& pes"ip!io$ !+ee is %s! !i!le w+e$ !+e ad#ese "laima$! "ame i$!o possessio$ o& !+e pope!y !+o%,+ o$e o& !+e modes e"o,$i-ed by law &o !+e a"H%isi!io$ o& ow$es+ip o o!+e eal i,+!s b%! !+e ,a$!o was $o! !+e ow$e o "o%ld $o! !a$smi! a$y i,+!. ;ulita 0. I(uan, et al. vs. ;uanito !ereno, et al., ".R. #o. $'2--&, Septe()er $$, +-. >es"ip!io$; e9pess !%s!. >es"ip!io$ a$d la"+es will %$ o$ly &om !+e !ime !+e e9pess !%s! is ep%dia!ed. T+e S%peme Co%! +as +eld !+a!pope!y &o a"H%isi!i#e !+e a"!io$ o& !+e !+e !%s!ee be$e&i"iay a,ai$s! !+e%$eH%i#o"al !%s!ee i$ a$ e9pess !%s! &o !+e e"o#ey o& !+e +eld i$pes"ip!io$ !%s! i! m%s!!o beba s+ow$ !+a!: 3a6 +as pe&omed a"!s o& ep%dia!io$ amo%$!i$, !o a$ o%s!e o& !+e "es!%i H%e !%s!; 3b6 s%"+ posi!i#e a"!s o& ep%dia!io$ +a#e bee$ made 2$ow$ !o !+e "es!%i H%e !%s! a$d 3"6 !+e e#ide$"e !+eeo$ is "lea a$d "o$"l%si#e. Respo$de$!s "a$$o! ely o$ !+e &a"! !+a! !+e Toe$s !i!le was iss%ed i$ !+e $ame o& Epi&a$io a$d !+e o!+e +eis o& ose. I! +as bee$ +eld !+a! a !%s!ee w+o ob!ai$s a Toe$s !i!le o#e pope!y +eld i$ !%s! by +im &o a$o!+e "a$$o! ep%dia!e !+e !%s! by elyi$, o$ !+e e,is!a!io$. T+e %le eH%ies a "lea ep%dia!io$ o& !+e !%s! d%ly "omm%$i"a!ed !o !+e be$e&i"iay. T+e o$ly a"! !+a! "a$ be "o$s!%ed as ep%dia!io$ was w+e$ espo$de$!s &iled !+e pe!i!io$ &o e"o$s!i!%!io$ i$ O"!obe 4''(. A$d si$"e pe!i!io$es &iled !+ei "omplai$! i$ a$%ay 4''5 !+ei "a%se o& a"!io$ +as $o! ye! pes"ibed la"+es "a$$o! be a!!ib%!ed
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eH%i!able emedy o& la"+es is !+ee&oe %$a#aili$, i$ !+is "ase. 9eirs of ranquilino La)iste, et al. vs. 9eirs of ;ose La)iste, et al., G.R. =o. 4*)(( May 0 *))'. EASEME=T Easeme$!. A$ easeme$! o se#i!%de is a$ e$"%mba$"e imposed %po$ a$ immo#able &o !+e be$e&i! o& a$o!+e immo#able belo$,i$, !o a di&&ee$! ow$e. T+ee ae !wo 2i$ds o& easeme$!s a""odi$, !o so%"e. A$ easeme$! is es!ablis+ed ei!+e by law o by will o& !+e ow$es. T+e "o%!s "a$$o! impose o "o$s!i!%!e a$y se#i!%de w+ee $o$e e9is!ed. T+ey "a$ o$ly de"lae i!s e9is!e$"e i& i$ eali!y i! e9is!s by law o by !+e will o& !+e ow$es. T+ee ae !+ee&oe $o %di"ial easeme$!s. A!i"le 0< o& !+e Ci#il Code po#ides !+a! $o popie!o s+all ma2e s%"+ e9"a#a!io$s %po$ +is la$d as !o depi#e a$y ada"e$! la$d o b%ildi$, o& s%&&i"ie$! la!eal o limi!a!io$ s%ba"e$! !+a! s%ppo!. A$ ow$e by #i!%e o& +is s%&a"e may o& ma2e e9"a#a!io$s +is la$d b%! +is i,+! is s%be"! !o !+e +e s+all $o! depi#e a$y ada"e$! la$d oi,+! b%ildi$, s%&&i"ie$! la!eal o$ o s%ba"e$! s%ppo!. e!wee$ !wo ada"e$! la$dow$es ea"+ +as a$ absol%!e pope!y i,+! !o +a#e +is la$d la!eally s%ppo!ed by !+e soil o& +is $ei,+bo a$d i& ei!+e i$ e9"a#a!i$, o$ +is ow$ pemises +e so dis!%bs !+e la!eal s%ppo! o& +is $ei,+bo?s la$d as !o "a%se i! o i$ i!s $a!%al s!a!e by !+e pess%e o& i!s ow$ wei,+! !o &all away o slide &om i!s posi!io$ !+e o$e so e9"a#a!i$, is liable. I$ !+e i$s!a$! "ase a$ easeme$! o& s%ba"e$! a$d la!eal s%ppo! e9is!s i$ &a#o o& espo$de$!. I! was es!ablis+ed !+a! !+e pope!ies o& pe!i!io$e a$d espo$de$! adoi$ ea"+ o!+e. T+e eside$!ial +o%se a$d lo! o& espo$de$! is lo"a!ed o$ a$ ele#a!ed pla!ea% o& &i&!ee$ 3456 &ee! abo#e !+e le#el o& pe!i!io$e?s pope!y. T+e emba$2me$! a$d !+e ipapped s!o$es +a#e bee$ i$ e9is!e$"e e#e$ be&oe pe!i!io$e be"ame !+e ow$e o& !+e pope!y. I! was po#e$ !+a! pe!i!io$e +as bee$ ma2i$, e9"a#a!io$s a$d di,,i$,s o$ !+e s%be"! emba$2me$! a$d %$less es!ai$ed !+e "o$!i$%ed e9"a#a!io$ o& !+e emba$2me$! "o%ld "a%se !+e &o%$da!io$ o& !+e ea po!io$ o& !+e +o%se o& espo$de$! !o "ollapse es%l!i$, i$ !+e des!%"!io$ o& a +%,e pa! o& !+e &amily dwelli$,. /argarita . !astro v. #apoleon A. /onsod ; G.R. =o. 40(K4'. Feb%ay * *)44. >ope!y; easeme$!. A!i"le ** o& !+e =ew Ci#il Code po#ides: /A!. **. Co$!i$%o%s $o$Bappae$! easeme$!s a$d dis"o$!i$%o%s o$es w+e!+e appae$! o $o! may be a"H%ied o$ly by #i!%e o& a !i!le.7 ased o$ !+e &oe,oi$, i$ ode &o pe!i!io$e !o a"H%ie !+e disp%!ed oad as a$ easeme$! o& i,+!Bo&Bway i! was i$"%mbe$! %po$ pe!i!io$e !o s+ow i!s i,+! by !i!le o by a$ a,eeme$! wi!+ !+e ow$es o& !+e la$ds !+a! said oad !a#esed. Bicol Agro8Industrial Producers !ooperative, inc. MBAP!IN vs. ?d(undo 3. 3)ias, et al. ".R. #o. $2+22. 3cto)er -, +>ope!y; easeme$!. >e!i!io$e wo%ld +a#e !+is Co%! eBe9ami$e Cos!abella Copoa!io$ #. Co%! o& Appeals 3Cos!abella6 w+ee !+e Co%! +eld !+a! /I! is aleady wellBes!ablis+ed !+a! a i,+! o& way is dis"o$!i$%o%s a$d as s%"+ "a$$o! be a"H%ied by pes"ip!io$.7 >e!i!io$e "o$!e$ds !+a! some e"o,$i-ed a%!+oi!ies s+ae i!s #iew !+a! a$ easeme$! o& i,+! o& way may be a"H%ied by pes"ip!io$. e !+a! as i! may !+is Co%! &i$ds $o easo$ !o eBe9ami$e Cos!abella. T+is Co%! is ,%ided by o,oBMedelli$ Milli$, Co. I$". #. Co%! o& Appeals 3o,oBMedelli$6 i$#ol#i$, !+e "o$s!%"!io$ o& a aiload !a"2 !o a s%,a mill. I$ o,oBMedelli$ !+is Co%! dis"%ssed !+e dis"o$!i$%o%s $a!%e o& a$ easeme$! o& i,+! o& way a$d !+e %le !+a! !+e same "a$$o! be a"H%ied by pes"ip!io$. Applyi$, o,oBMedelli$ !o !+e "ase a! ba !+e "o$"l%sio$ is i$e#i!able !+a! !+e oad i$ disp%!e is a dis"o$!i$%o%s easeme$! $o!wi!+s!a$di$, !+a! !+e same may be appae$!. To ei!ea!e easeme$!s ae ei!+e "o$!i$%o%s o dis"o$!i$%o%s a""odi$, !o !+e ma$$e !+ey ae e9e"ised $o! a""odi$, !o !+e pese$"e o& appae$! si,$s o p+ysi"al i$di"a!io$s o& !+e e9is!e$"e o& s%"+ easeme$!s. 8e$"e e#e$ i& !+e oad i$ disp%!e +as bee$ impo#ed a$d mai$!ai$ed o#e a $%mbe o& yeas i! will $o! "+a$,e i!s dis"o$!i$%o%s $a!%e b%! simply ma2e !+e same appae$!. To s!ess A!i"le ** o& !+e =ew Ci#il Code s!a!es !+a! dis"o$!i$%o%s easeme$!s w+e!+e appae$! o $o! may be a"H%ied o$ly by #i!%e o& a !i!le. Bicol Agro8Industrial Producers !ooperative, inc. MBAP!IN vs. ?d(undo 3. 3)ias, et al. ".R. #o. $2+22. 3cto)er -, +>ope!y; easeme$!. >e!i!io$e ma$i&es!ed i$ !+e RTC i!s desie i$ !+e al!e$a!i#e !o a#ail o& a "omp%lsoy easeme$! o& i,+! o& way as po#ided &o %$de A!i"le <' !+e =ew Ci#il Code. Said elie& was ,a$!ed by !+e RTC be"a%se o& !+e %$a#ailabili!y o& a$o!+e adeH%a!e o%!le! &om !+e s%,a mill !o !+e +i,+way. @espi!e !+e ,a$! o& a "omp%lsoy easeme$! o& i,+! o& way pe!i!io$e +owe#e assails bo!+ !+e RTC a$d CA @e"isio$ wi!+ e,ad !o !+e amo%$! o& i$dem$i!y d%e espo$de$!s.
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T+is Co%! does $o! a,ee. U$de A!i"le <' o& !+e Ci#il Code i! is "lea !+a! !+e law does $o! po#ide &o a spe"i&i" &om%la &o !+e #al%a!io$ o& !+e la$d. =ei!+e does !+e same s!a!e !+a! !+e #al%e o& !+e la$d m%s! be "omp%!ed a! !+e !ime o& !a2i$,. T+e o$ly pimodial "o$sidea!io$ is !+a! !+e same s+o%ld "o$sis! o& !+e #al%e o& !+e la$d a$d !+e amo%$! o& dama,e "a%sed !o !+e se#ie$! es!a!e. 8e$"e !+e same is a H%es!io$ o& &a"! w+i"+ s+o%ld be le&! !o !+e so%$d dis"e!io$ o& !+e RTC. Bicol Agro8 Industrial Producers !ooperative, inc. MBAP!IN vs. ?d(undo 3. 3)ias, et al. ".R. #o. $2+22. 3cto)er -, +>ope!y; easeme$!. Easeme$!s may be "o$!i$%o%s o dis"o$!i$%o%s appae$! o $o$Bappae$!. Co$!i$%o%s easeme$!s ae !+ose !+e %se o& w+i"+ is o may be i$"essa$! wi!+o%! !+e i$!e#e$!io$ o& a$y a"! o& ma$. @is"o$!i$%o%s easeme$!s ae !+ose w+i"+ ae %sed a! i$!e#als a$d depe$d %po$ !+e a"!s o& ma$. Appae$! easeme$!s ae !+ose w+i"+ ae made 2$ow$ a$d ae "o$!i$%ally 2ep! i$ #iew by e9!e$al si,$s !+a! e#eal !+e %se a$d e$oyme$! o& !+e same. =o$Bappae$! easeme$!s ae !+ose w+i"+ s+ow $o e9!e$al i$di"a!io$ o& !+ei e9is!e$"e. I$ !+e pese$! "ase !+e easeme$! o& i,+! o& way is dis"o$!i$%o%s a$d appae$!. I! is dis"o$!i$%o%s as !+e %se depe$ds %po$ !+e a"!s o& espo$de$!s a$d o!+e peso$s passi$, !+o%,+ !+e pope!y. ei$, a$ alley !+a! s+ows a pema$e$! pa!+ ,oi$, !o a$d &om ea!a S!ee! !+e same is appae$!. ei$, a dis"o$!i$%o%s a$d appae$! easeme$! !+e same "a$ be a"H%ied o$ly by #i!%e o& a !i!le. 9eirs of the late ;oaquin Li(ense vs. Rita vda. e Ra(os, et al., ".R. #o. $&+<$-, 3cto)er +%, +-. >ope!y; easeme$!. A$ easeme$! o se#i!%de is /a eal i,+! "o$s!i!%!ed o$ a$o!+e?s pope!y "opoeal a$d immo#able by #i!%e o& w+i"+ !+e ow$e o& !+e same +as !o abs!ai$ &om doi$, o !o allow somebody else !o do some!+i$, o$ +is pope!y &o !+e be$e&i! o& a$o!+e !+i$, o peso$. T+ee ae !wo so%"es o& easeme$!s: by law o by !+e will o& !+e ow$es. I$ !+e pese$! "ase $ei!+e !ype o& easeme$! was "o$s!i!%!ed o#e !+e s%be"! pope!y. I$ i!s alle,a!io$s espo$de$! "laims !+a! Ca%&& "o$s!i!%!ed a #ol%$!ay easeme$! w+e$ i! "o$s!%"!ed !+e ,e$ea!i$, se! a$d s%mp p%mps o#e !+e disp%!ed po!io$ o& !+e s%be"! pope!y &o i!s be$e&i!. 8owe#e i! s+o%ld be $o!ed !+a! w+e$ !+e app%!e$a$"es wee "o$s!%"!ed o$ !+e s%be"! pope!y !+e la$ds w+ee !+e "o$domi$i%m was bei$, ee"!ed a$d !+e s%be"! pope!y w+ee !+e ,e$ea!i$, se! a$d s%mp p%mps wee "o$s!%"!ed belo$,ed !o Ca%&&. T+ee&oe A!i"le 4( o& !+e Ci#il Code does $o! apply si$"e $o !%e easeme$! was "o$s!i!%!ed o e9is!ed be"a%se bo!+ pope!ies wee ow$ed by Ca%&&. Also A!i"le *< o& !+e Ci#il Code is "o$!olli$, as i! "o$!empla!es a si!%a!io$ w+ee !+ee e9is!s a$ appae$! si,$ o& easeme$! be!wee$ !wo es!a!es es!ablis+ed o mai$!ai$ed by !+e ow$e o& bo!+. I! "a$ be i$&eed !+a! w+e$ !+e ow$e o& !wo pope!ies alie$a!es o$e o& !+em a$d a$ appae$! si,$ o& easeme$! e9is!s be!wee$ !+e !wo es!a!es e$!i!leme$! !o i! "o$!i$%es %$less !+ee is a "o$!ay a,eeme$! o !+e i$di"a!io$ !+a! !+e easeme$! e9is!s is emo#ed be&oe !+e e9e"%!io$ o& !+e deed. Privati5ation /anage(ent 3ffice vs. Legaspi o@ers <, Inc., ".R. #o. $*2-&2, ;uly ++, +-. >ope!y; easeme$!. A$ easeme$! is a eal i,+! o$ a$o!+e?s pope!y "opoeal a$d immo#able w+eeby !+e ow$e o& !+e la!!e m%s! e&ai$ &om doi$, o allowi$, somebody else !o do o some!+i$, !o be do$e o$ +is pope!y &o !+e be$e&i! o& a$o!+e peso$ o !e$eme$!. Easeme$!s ae es!ablis+ed ei!+e by law o by !+e will o& !+e ow$e. T+e &ome ae "alled le,al a$d !+e la!!e #ol%$!ay easeme$!s. I$ !+is "ase pe!i!io$e i!sel& admi!!ed !+a! a #ol%$!ay easeme$! o& i,+! o& way e9is!s i$ &a#o o& espo$de$!s. 8a#i$, made s%"+ a$ admissio$ pe!i!io$e "a$$o! $ow "laim !+a! w+a! e9is!s is a le,al easeme$! a$d !+a! !+e same s+o%ld be "a$"elled si$"e !+e domi$a$! es!a!e is $o! a$ e$"losed es!a!e as i! +as a$ adeH%a!e a""ess !o a p%bli" oad w+i"+ is Calleo$ Ma!ie$-a S!ee!. T+e ope$i$, o& a$ adeH%a!e o%!le! !o a +i,+way "a$ e9!i$,%is+ o$ly le,al o "omp%lsoy easeme$!s $o! #ol%$!ay easeme$!s li2e i$ !+e "ase a! ba. T+e &a"! !+a! a$ easeme$! by ,a$! may +a#e also H%ali&ied as a$ easeme$! o& $e"essi!y does $o! de!a"! &om i!s pema$e$"y as a pope!y i,+! w+i"+ s%#i#es !+e !emi$a!io$ o& !+e $e"essi!y. A #ol%$!ay easeme$! o& i,+! o& way li2e a$y o!+e "o$!a"! "o%ld be e9!i$,%is+ed o$ly by m%!%al a,eeme$! o by e$%$"ia!io$ o& !+e ow$e o& !+e domi$a$! es!a!e. =ei!+e "a$ pe!i!io$e "laim !+a! !+e easeme$! is peso$al o$ly !o 8idal,o si$"e !+e a$$o!a!io$ meely me$!io$ed Sa$di"o a$d 8idal,o wi!+o%! eH%ally bi$di$, !+ei +eis o assi,$s. T+a! !+e +eis o assi,$s o& !+e pa!ies wee $o! me$!io$ed i$ !+e a$$o!a!io$ does $o! mea$ !+a! i! is $o! bi$di$, o$ !+em. A,ai$ a #ol%$!ay easeme$! o& i,+! o& way is li2e a$y o!+e "o$!a"!.
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ow$es o& !+e domi$a$! es!a!e Lo!s 4 a$d * >la$ >"sB*K*7 a$d e9"l%des /!+e i$dis"imi$a!e p%bli" &om !+e e$oyme$! o& !+e i,+!Bo&Bway easeme$!.7 Al!+o%,+ !+e easeme$! does $o! appea i$ espo$de$!s? !i!le o#e !+e domi$a$! es!a!e !+e same s%bsis!s. I! is se!!led !+a! !+e e,is!a!io$ o& !+e domi$a$! es!a!e %$de !+e Toe$s sys!em wi!+o%! !+e a$$o!a!io$ o& !+e #ol%$!ay easeme$! i$ i!s &a#o does $o! e9!i$,%is+ !+e easeme$!. O$ !+e "o$!ay i! is !+e e,is!a!io$ o& !+e se#ie$! es!a!e as &ee !+a! is wi!+o%! !+e a$$o!a!io$ o& !+e #ol%$!ay easeme$! w+i"+ e9!i$,%is+es !+e easeme$!. Fi$ally !+e mee &a"! !+a! espo$de$!s s%bdi#ided !+e pope!y does $o! e9!i$,%is+ !+e easeme$!. A!i"le 40 o& !+e Ci#il Code po#ides !+a! i& !+e domi$a$! es!a!e is di#ided be!wee$ !wo o moe peso$s ea"+ o& !+em may %se !+e easeme$! i$ i!s e$!ie!y wi!+o%! "+a$,i$, !+e pla"e o& i!s %se o ma2i$, i! moe b%de$some i$ a$y o!+e way. 4nisource !o((ercial and
evelop(ent !orporation vs. ;oseph !hung, et al., G.R. =o. 4K(*5* %ly 4K *))'. Easeme$!. T+e ow$e o& !+e domi$a$! es!a!e "a$$o! #iola!e a$y o& !+e &ollowi$, pes"ibed es!i"!io$s o$ i!s i,+!s o$ !+e se#ie$! es!a!e !o wi!: 346 i! "a$ o$ly e9e"ise i,+!s $e"essay &o !+e %se o& !+e easeme$!; 3*6 i! "a$$o! %se !+e easeme$! e9"ep! &o !+e be$e&i! o& !+e immo#able oi,i$ally "o$!empla!ed; 3(6 i! "a$$o! e9e"ise !+e easeme$! i$ a$y o!+e ma$$e !+a$ !+a! pe#io%sly es!ablis+ed; 3<6 i! "a$$o! "o$s!%"! a$y!+i$, o$ i! w+i"+ is $o! $e"essay &o !+e %se a$d pese#a!io$ o& !+e easeme$!; 356 i! "a$$o! al!e o ma2e !+e easeme$! moe b%de$some; 36 i! m%s! $o!i&y !+e se#ie$! es!a!e ow$e o& i!s i$!e$!io$ !o ma2e $e"essay wo2s o$ !+e se#ie$! es!a!e; a$d 3K6 i! s+o%ld "+oose !+e mos! "o$#e$ie$! !ime a$d ma$$e !o b%ild said wo2s so as !o "a%se !+e leas! "o$#e$ie$"e !o !+e ow$e o& !+e se#ie$! es!a!e. A$y #iola!io$ o& !+e abo#e "o$s!i!%!es impaime$! o& !+e easeme$!. "olderes Realty !orp. 0s. !ypress "ardens etc., G.R. =o. 4K4)K* Apil K *))'. @O=ATIO=S @o$a!io$. I! is immedia!ely appae$! !+a! Rodi,o passed $a2ed !i!le !o Rodi,%e- %$de a pe&e"!ed do$a!io$ inter vivos. irst. Rodi,o s!ip%la!ed !+a! /i& !+e +eei$ @o$ee pede"eases me !+e D>ope!y will $o! be e#e!ed !o !+e @o$o b%! will be i$+ei!ed by !+e +eis o& 9 9 9 Rodi,%e-7 si,$ali$, !+e ie#o"abili!y o& !+e passa,e o& !i!le !o Rodi,%e-?s es!a!e wai#i$, Rodi,o?s i,+! !o e"laim !i!le. T+is !a$s&e o& !i!le was pe&e"!ed !+e mome$! Rodi,o lea$ed o& Rodi,%e-?s a""ep!a$"e o& !+e disposi!io$ w+i"+ bei$, e&le"!ed i$ !+e @eed !oo2 pla"e o$ !+e day o& i!s e9e"%!io$ o$ ( May 4'5. Rodi,o?s a""ep!a$"e o& !+e !a$s&e %$des"oes i!s esse$"e as a ,i&! in presenti $o! in futuro as o$ly do$a!io$s inter vivos $eed a""ep!a$"e by !+e e"ipie$!. I$deed +ad Rodi,o wis+ed !o e!ai$ &%ll !i!le o#e !+e >ope!y s+e "o%ld +a#e easily s!ip%la!ed as !+e !es!a!o did i$ a$o!+e "ase !+a! /!+e do$o may !a$s&e sell o e$"%mbe !o a$y peso$ o e$!i!y !+e pope!ies +ee do$a!ed 9 9 97 o %sed wods !o !+a! e&&e"!. I$s!ead Rodi,o e9pessly wai#ed !i!le o#e !+e >ope!y i$ "ase Rodi,%e- pede"eases +e. "on5alo 0illanueva, represented )y his heirs vs. Spouses roilan and Leonila Branoco> ".R. #o. $2+%*, ;anuary +*, +$$ .
III. WILLS AND SUCCESSION @o$a!io$ mo!is "a%sa. A do$a!io$ (ortis causa m%s! "omply wi!+ !+e &omali!ies pes"ibed by law &o !+e #alidi!y o& wills o!+ewise !+e do$a!io$ is #oid a$d wo%ld pod%"e $o e&&e"!. A!i"les 0)5 a$d 0) o& !+e Ci#il Code s+o%ld be applied. I$ !+is "ase !+e p%po!ed a!!es!a!io$ "la%se embodied i$ !+e A"2$owled,me$! po!io$ did $o! "o$!ai$ !+e $%mbe o& pa,es o$ w+i"+ !+e deed was wi!!e$. T+e e9"ep!io$ !o !+is %le i$ Singson v. lorentino a$d a)oada v. 9on. Rosal "a$$o! be applied !o !+e pese$! "ase as !+e &a"!s o& !+is "ase ae $o! simila wi!+ !+ose o& Singson a$d a)oada. I$ !+ose "ases !+e Co%! &o%$d !+a! al!+o%,+ !+e a!!es!a!io$ "la%se &ailed !o s!a!e !+e $%mbe o& pa,es %po$ w+i"+ !+e will was wi!!e$ !+e $%mbe o& pa,es was s!a!ed i$ o$e po!io$ o& !+e will. T+is is $o! !+e &a"!%al si!%a!io$ i$ !+e pese$! "ase. E#e$ ,a$!i$, !+a! !+e A"2$owled,me$! embodies w+a! !+e a!!es!a!io$ "la%se eH%ies a$ a!!es!a!io$ "la%se a$d a$ a"2$owled,me$! may $o! be me,ed i$ o$e s!a!eme$!. T+a! !+e eH%ieme$!s o& a!!es!a!io$ a$d a"2$owled,me$! ae embodied i$ !wo sepaa!e po#isio$s o& !+e Ci#il Code 3A!i"les 0)5 a$d 0) espe"!i#ely6 i$di"a!es !+a! !+e law "o$!empla!es !wo dis!i$"! a"!s !+a! se#e di&&ee$! p%poses. A$ a"2$owled,me$! is made by o$e e9e"%!i$, a deed de"lai$,
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a!!es!a!io$ m%s! s!a!e all !+e de!ails !+e !+id paa,ap+ o& A!i"le 0)5 eH%ies. I$ !+e abse$"e o& !+e eH%ied a#owal by !+e wi!$esses !+emsel#es $o a!!es!a!io$ "la%se "a$ be deemed embodied i$ !+e A"2$owled,eme$! o& !+e @eed o& @o$a!io$ /ortis !ausa. /anuel A. ?chave5 vs. o5en !onstruction and evelop(ent !orp. and he Register of eeds, !e)u !ity> ".R. #o. $-+-$'. 3cto)er $$, +$. @o$a!io$ mo!is "a%sa #s. do$a!io$ i$!e #i#os. T+a! a do"%me$! is "ap!io$ed /@o$a!io$ /ortis !ausa7 is $o! "o$!olli$,. I& a do$a!io$ by i!s !ems is inter vivos !+is "+aa"!e is $o! al!eed by !+e &a"! !+a! !+e do$o s!yles i! (ortis causa. /Ie#o"abili!y7 is a H%ali!y absol%!ely i$"ompa!ible wi!+ !+e idea o& "o$#eya$"es (ortis causa w+ee /e#o"abili!y7 is pe"isely !+e esse$"e o& !+e a"!. A do$a!io$ (ortis causa +as !+e &ollowi$, "+aa"!eis!i"s: 4. I! "o$#eys $o !i!le o ow$es+ip !o !+e !a$s&eee be&oe !+e dea!+ o& !+e !a$s&eo; o w+a! amo%$!s !o !+e same !+i$, !+a! !+e !a$s&eo s+o%ld e!ai$ !+e ow$es+ip 3&%ll o $a2ed6 a$d "o$!ol o& !+e pope!y w+ile ali#e; *. T+a! be&oe +is dea!+ !+e !a$s&e s+o%ld be e#o"able by !+e !a$s&eo a! will ad nutu(; b%! e#o"abili!y may be po#ided &o i$die"!ly by mea$s o& a ese#ed powe i$ !+e do$o !o dispose o& !+e pope!ies "o$#eyed; a$d (. T+a! !+e !a$s&e s+o%ld be #oid i& !+e !a$s&eo s+o%ld s%#i#e !+e !a$s&eee. I$ !+is "ase !+e do$os plai$ly said !+a! i! is /o% will !+a! !+is @o$a!io$ /ortis !ausa s+all be ie#o"able a$d s+all be espe"!ed by !+e s%#i#i$, spo%se.7 T+e i$!e$! !o ma2e !+e do$a!io$ ie#o"able be"omes e#e$ "leae by !+e po#iso !+a! a s%#i#i$, do$o s+all espe"! !+e ie#o"abili!y o& !+e do$a!io$. Co$seH%e$!ly !+e do$a!io$ was i$ eali!y a do$a!io$ inter vivos. T+e do$os i$ !+is "ase o& "o%se ese#ed !+e /i,+! ow$es+ip possessio$ a$d admi$is!a!io$ o& !+e pope!y7 a$d made !+e do$a!io$ opea!i#e %po$ !+ei dea!+. %! !+is Co%! +as "o$sis!e$!ly +eld !+a! s%"+ ese#a!io$ 3 reddendu(6 i$ !+e "o$!e9! o& a$ ie#o"able do$a!io$ simply mea$s !+a! !+e do$os pa!ed wi!+ !+ei $a2ed !i!le mai$!ai$i$, o$ly "$"f!!al ow$es+ip o& !+e do$a!ed pope!y w+ile !+ey li#ed. =o!ably !+e !+ee do$ees si,$ed !+ei a""ep!a$"e o& !+e do$a!io$ w+i"+ a""ep!a$"e !+e deed eH%ied. T+is Co%! +as +eld !+a! a$ a""ep!a$"e "la%se i$di"a!es !+a! !+e do$a!io$ is inter vivos si$"e a""ep!a$"e is a eH%ieme$! o$ly &o s%"+ 2i$d o& do$a!io$s. @o$a!io$s (ortis causa bei$, i$ !+e &om o& a will $eed $o! be a""ep!ed by !+e do$ee d%i$, !+e do$o?s li&e!ime. Fi$ally as %s!i"e . . L. Reyes said i$ Puig v. PeKaflorida i$ "ase o& do%b! !+e "o$#eya$"e s+o%ld be deemed a do$a!io$ inter vivos a!+e !+a$ (ortis causa i$ ode !o a#oid %$"e!ai$!y as !o !+e ow$es+ip o& !+e pope!y s%be"! o& !+e deed. Si$"e !+e do$a!io$ i$ !+is "ase was o$e made inter vivos i! was immedia!ely opea!i#e a$d &i$al. T+e easo$ is !+a! s%"+ 2i$d o& do$a!io$ is deemed pe&e"!ed &om !+e mome$! !+e do$o lea$ed o& !+e do$ee?s a""ep!a$"e o& !+e do$a!io$. T+e a""ep!a$"e ma2es !+e do$ee !+e absol%!e ow$e o& !+e pope!y do$a!ed. ;ara)ini ". el Rosario vs. Asuncion . errer, et al., ".R. #o. $%2&', Septe()er +, +$. S%""essio$; wai#e o& i$+ei!a$"e. T+e basi" H%es!io$s !o be esol#ed i$ !+is "ase ae: Is a wai#e o& +eedi!ay i,+!s i$ &a#o o& a$o!+e e9e"%!ed by a &%!%e +ei w+ile !+e pae$!s ae s!ill li#i$, #alid Is a$ ad#ese "laim a$$o!a!ed o$ !+e !i!le o& a pope!y o$ !+e basis o& s%"+ wai#e li2ewise #alid a$d e&&e"!i#e as !o bi$d !+e s%bseH%e$! ow$es a$d +old !+em liable !o !+e "laima$! >%s%a$! !o !+e se"o$d paa,ap+ o& A!i"le 4(ope!y 3S!ill U$di#ided6 s%""essio$ !o ei!+e o& +e pae$!?s pope!ies +as $o! ye! bee$ ope$ed si$"e bo!+ o& !+em ae s!ill li#i$,. Wi!+ espe"! !o !+e o!+e !wo eH%isi!es bo!+ ae li2ewise pese$! "o$sidei$, !+a! !+e pope!y s%be"! ma!!e o& Coma$da$!e?s wai#e "o$"ededly &oms pa! o& !+e pope!ies
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&a#o o& pe!i!io$e as $o! #alid a$d !+a! same "a$$o! be !+e so%"e o& a$y i,+! o "ea!e a$y obli,a!io$ be!wee$ !+em &o bei$, #iola!i#e o& !+e se"o$d paa,ap+ o& A!i"le 4(@ 45*' !+a! i! is $e"essay !+a! !+e "laima$! +as a i,+! o i$!ees! i$ !+e e,is!eed la$d ad#ese !o !+e e,is!eed ow$e a$d !+a! i! m%s! aise s%bseH%e$! !o e,is!a!io$. 8ee as $o i,+! o i$!ees! o$ !+e s%be"! pope!y &lows &om Coma$da$!e?s i$#alid wai#e o& +eedi!ay i,+!s %po$ pe!i!io$e !+e la!!e is !+%s $o! e$!i!led !o !+e e,is!a!io$ o& +is ad#ese "laim. T+ee&oe pe!i!io$e?s ad#ese "laim is wi!+o%! a$y basis a$d m%s! "o$seH%e$!ly be ad%d,ed i$#alid a$d i$e&&e"!i#e a$d pe&o"e be "a$"elled. Atty. Pedro /. errer vs. Spouses Alfredo ia5, et al., ".R. #o. $'&<, April +<, +$.
IV. LAND RE=ISTRATION La$d !i!les; "o$&li"!i$, !i!les. As +eld i$ !+e "ase o& op /anage(ent Progra(s !orporation v. Luis aardo and the Register of eeds of Las PiKas !ity: /i& !wo "e!i&i"a!es o& !i!le p%po! !o i$"l%de !+e same la$d w+e!+e w+olly o pa!ly !+e be!!e appoa"+ is !o !a"e !+e srcinal certificates &om w+i"+ !+e "e!i&i"a!es o& !i!les wee dei#ed.7 8a#i$, !+%s !a"ed !+e oo!s o& !+e pa!ies? espe"!i#e !i!les s%ppo!ed by !+e e"ods o& !+e Re,is!e o& @eeds o& Malaybalay Ci!y !+e "o%!s a H%o wee "oe"! i$ %p+oldi$, !+e !i!le o& !+e 8eis o& Adol&o as a,ai$s! TCT =o. TB4)5K o& a$,is $o!wi!+s!a$di$, i!s ealie iss%a$"e o$ A%,%s! 40 4'K o lo$, be&oe !+e 8eis o& Adol&o se"%ed !+ei ow$ !i!les o$ May * 4''0. To paap+ase !+e Co%!?s %li$, i$ /athay v. !ourt of Appeals: w+ee !wo 3*6 !a$s&e "e!i&i"a!es o& !i!le +a#e bee$ iss%ed o$ di&&ee$! da!es !+e o$e w+o +olds !+e ealie !i!le may pe#ail o$ly i$ !+e abse$"e o& a$y a$omaly o ie,%lai!y i$ !+e po"ess o& i!s e,is!a!io$ w+i"+ "i"%ms!a$"e does $o! ob!ai$ i$ !+is "ase. Aniceto Bangis, su)stituted )y his heirs, na(ely Rodolfo B. Bangis, et al. vs. 9eirs of Serafin and Salud Adolfo, na(ely: Lu5 A. Banniester, et al.; G.R. =o. 4')0K5 %$e 4( *)4*. >.@. =o. 45*'; Toe$s !i!le; "olla!eal a!!a"2. As &o !+e spo%ses @e"ale$,?s "o$!e$!io$ !+a! Ce!i&i"a!e o& Ti!le =o. 4 does $o! e9is! !+e Co%! &%lly a,ees wi!+ !+e Co%! o& Appeals !+a! !+e same "o$s!i!%!es a "olla!eal a!!a"2 o& Ce!i&i"a!e o& Ti!le =o. 4. I! is a +o$boo2 pi$"iple !+a! /a "e!i&i"a!e o& !i!le se#es as e#ide$"e o& a$ i$de&easible !i!le !o !+e pope!y i$ &a#o o& !+e peso$ w+ose $ame appeas !+eei$.7 I$ ode !o es!ablis+ a sys!em o& e,is!a!io$ by w+i"+ e"oded !i!le be"omes absol%!e i$de&easible a$d impes"ip!ible !+e le,isla!%e passed A"! =o. <' w+i"+ !oo2 e&&e"! o$Feb%ay 4 4')(. A"! =o. <' pla"ed all e,is!eed la$ds i$ !+e >+ilippi$es %$de !+e Toe$s sys!em. T+e Toe$s sys!em eH%ies !+e ,o#e$me$! !o iss%e a "e!i&i"a!e o& !i!le s!a!i$, !+a! !+e peso$ $amed i$ !+e !i!le is !+e ow$e o& !+e pope!y des"ibed !+eei$ s%be"! !o lie$s a$d e$"%mba$"es a$$o!a!ed o$ !+e !i!le o ese#ed by law. T+e "e!i&i"a!e o& !i!le is i$de&easible a$d impes"ip!ible a$d all "laims !o !+e pa"el o& la$d ae H%ie!ed %po$ iss%a$"e o& !+e "e!i&i"a!e. >eside$!ial @e"ee =o. 45*' 2$ow$ as !+e >ope!y Re,is!a!io$ @e"ee e$a"!ed o$ %$e 44 4'K0 ame$ded a$d %pda!ed A"! =o. <'. Se"!io$ <0 o& >eside$!ial @e"ee =o. 45*' po#ides: Se"!io$ <0. !ertificate not su)ect to collateral attack. 1 A "e!i&i"a!e o& !i!le s+all $o! be s%be"! !o "olla!eal a!!a"2. I! "a$$o! be al!eed modi&ied o "a$"elled e9"ep! i$ a die"! po"eedi$, i$ a""oda$"e wi!+ law. A Toe$s !i!le "a$$o! be a!!a"2ed "olla!eally a$d !+e iss%e o$ i!s #alidi!y "a$ be aised o$ly i$ a$ a"!io$ e9pessly i$s!i!%!ed &o !+a! p%pose. A "olla!eal a!!a"2 is made w+e$ i$ a$o!+e a"!io$ !o ob!ai$ a di&&ee$! elie& !+e "e!i&i"a!e o& !i!le is assailed asistrict a$ i$"ide$! i$ said a"!io$.!hurch Sps. A()rosio ecaleng su)stituted )y; G.R. his heirsD ;uliaPFanayG ecaleng vs.*K Bishop /issionary of Protestant ?piscopal in the 4nited StatesCas of A(erica, et al. =o. and 4K4*)' U@NB4(K*. %$e *)4*of the >.@. =o. 45*'; Toe$s !i!le; "olla!eal a!!a"2; i$de&easibili!y o& !i!le #s. possessio$. I$ Soriente v. ?state of the Late Arsenio ?. !oncepcion a simila alle,a!io$ 1 possessio$ o& !+e pope!y i$ disp%!e si$"e !ime immemoial 1 was me! wi!+ eb%2e as s%"+ possessio$ &o w+a!e#e le$,!+ o& !ime "a$$o! pe#ail o#e a Toe$s !i!le !+e #alidi!y o& w+i"+ is pes%med a$d imm%$e !o a$y "olla!eal a!!a"2. /T+e #alidi!y o& espo$de$!?s "e!i&i"a!e o& !i!le "a$$o! be a!!a"2ed by pe!i!io$e i$ !+is "ase &o ee"!me$!. U$de Se"!io$ <0 o& >eside$!ial @e"ee =o. 45*' a "e!i&i"a!e o& !i!le s+all $o! be s%be"! !o "olla!eal a!!a"2. I! "a$$o! be al!eed modi&ied o "a$"elled e9"ep! i$ a die"! po"eedi$, &o !+a! p%pose i$ a""oda$"e wi!+ law. T+e iss%e o& !+e #alidi!y o& !+e !i!le o& !+e
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=ei!+e will !+e s+ee lapse o& !ime le,i!imi-e !+e pe!i!io$es? e&%sal !o #a"a!e !+e s%be"! aea o ba !+e espo$de$!s &om ,ai$i$, possessio$ !+eeo&. As %led i$ Spouses Ragudo v. a)ella ?state enants Association, Inc. la"+es does $o! opea!e !o depi#e !+e e,is!eed ow$e o& a pa"el o& la$d o& +is i,+! !o e"o#e possessio$ !+eeo&. 9eirs of ;ose /aligaso, Sr., etc. vs. Sps. Si(on . ?ncinas and ?speran5a ?. ?ncinas ; G.R. =o. 40*K4 %$e *) *)4*. La$d e,is!a!io$. Se"!io$ 4<346 o& !+e >ope!y Re,is!a!io$ @e"ee +as !+ee eH%isi!es &o e,is!a!io$ o& !i!le: 3a6 !+a! !+e pope!y i$ H%es!io$ is alie$able a$d disposable la$d o& !+e p%bli" domai$; 3b6 !+a! !+e appli"a$!s by !+emsel#es o !+o%,+ !+ei pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$; a$d 3"6 !+a! s%"+ possessio$ is %$de a )ona fide "laim o& ow$es+ip si$"e %$e 4* 4'<5 o ealie. A simila i,+! is ,a$!ed %$de Se". <03b6 o& !+e >%bli" La$d A"!. T+ee ae $o ma!eial di&&ee$"es be!wee$ Se". 4<346 o& !+e >ope!y Re,is!a!io$ @e"ee a$d Se". <03b6 o& !+e >%bli" La$d A"!. Se". 4<346 opea!io$ali-es !+e e,is!a!io$ o& s%"+ la$ds o& !+e p%bli" domai$. 8ee !+e o$ly easo$ !+e CA ,a#e i$ e#esi$, !+e de"isio$ o& !+e MeTC is !+a! i"!oia &ailed !o s%bmi! !+e =o#embe *)) Ce!i&i"a!io$ iss%ed by !+e @E=R #ei&yi$, !+e s%be"! pope!y as wi!+i$ !+e alie$able a$d disposable la$d o& !+e p%bli" domai$ d%i$, !+e +eai$, be&oe !+e MeTC. S+e bela!edly s%bmi!!ed i! o$ appeal. To po#e !+a! !+e la$d s%be"! o& !+e appli"a!io$ &o e,is!a!io$ is alie$able a$ appli"a$! m%s! es!ablis+ !+e e9is!e$"e o& a posi!i#e a"! o& !+e ,o#e$me$! s%"+ as a peside$!ial po"lama!io$ o a$ e9e"%!i#e ode; a$ admi$is!a!i#e a"!io$; i$#es!i,a!io$ epo!s o& %ea% o& La$ds i$#es!i,a!os; a$d a le,isla!i#e a"! o s!a!%!e. T+e appli"a$! may se"%e a "e!i&i"a!io$ &om !+e ,o#e$me$! !+a! !+e la$ds applied &o ae alie$able a$d disposable b%! !+e "e!i&i"a!io$ m%s! s+ow !+a! !+e @E=R Se"e!ay +ad appo#ed !+e la$d "lassi&i"a!io$ a$d eleased !+e la$d o& !+e p%bi" domai$ as alie$able a$d disposable a$d !+a! !+e la$d s%be"! o& !+e appli"a!io$ &o e,is!a!io$ &alls wi!+i$ !+e appo#ed aea pe #ei&i"a!io$ !+o%,+ s%#ey by !+e >E=RO o CE=RO. T+e appli"a$! m%s! also pese$! a "opy o& !+e oi,i$al "lassi&i"a!io$ o& !+e la$d i$!o alie$able a$d disposable as de"laed by !+e @E=R Se"e!ay o as po"laimed by !+e >eside$!. I$ Llanes v. Repu)lic !+e Co%! allowed "o$sidea!io$ o& a CE=RO Ce!i&i"a!io$ !+o%,+ i! was o$ly pese$!ed d%i$, appeal !o !+e CAis!oempoweed a#oid a pa!e$! %$&ai$ess. T+e %les o& po"ed%e bei$, mee !ools desi,$ed !o &a"ili!a!e!e$ds !+e a!!ai$me$! o& a!+e %s!i"e!+a$ !+e Co%! !o s%spe$d !+ei appli"a!io$ !o a pa!i"%la "ase w+e$ i!s i,id appli"a!io$ !o &%s!a!e pomo!e !+e e$ds o& %s!i"e. @e$yi$, !+e appli"a!io$ &o e,is!a!io$ $ow o$ !+e ,o%$d o& &ail%e !o pese$! poo& o& !+e s!a!%s o& !+e la$d be&oe !+e !ial "o%! a$d allowi$, i"!oia !o eB&ile +e appli"a!io$ wo%ld meely %$$e"essaily d%pli"a!e !+e e$!ie po"ess "a%se addi!io$al e9pe$se a$d add !o !+e $%mbe o& "ases !+a! "o%!s m%s! esol#e. I! wo%ld be moe p%de$! !o e"o,$i-e !+e @E=R Ce!i&i"a!io$ a$d esol#e !+e ma!!e $ow. esides !+e e"od s+ows !+a! !+e s%be"! pope!y was "o#eed by a "adas!al s%#ey o& Ta,%i, "o$d%"!ed by !+e ,o#e$me$! a! i!s e9pe$se. S%"+ s%#eys ae "aied o%! pe"isely !o e$"o%a,e la$dow$es a$d +elp !+em ,e! !i!les !o !+e la$ds "o#eed by s%"+ s%#ey. I! does $o! ma2e se$se !o aise a$ obe"!io$ a&!e s%"+ a s%#ey !+a! !+e la$ds "o#eed by i! ae i$alie$able la$d o& !+e p%bli" domai$ li2e a p%bli" &oes!. T+is is !+e Ci!y o& Ta,%i, i$ !+e middle o& !+e me!opolis. T+e CA also eed i$ $o! a&&imi$, !+e de"isio$ o& !+e MeTC espe"ially si$"e i"!oia +as "o$!ay !o !+e Soli"i!o Ge$eal?s alle,a!io$ po#ed !+a! s+e a$d +e pede"essosBi$Bi$!ees! +ad bee$ i$ possessio$ o& !+e s%be"! lo! "o$!i$%o%sly %$i$!e%p!edly ope$ly p%bli"ly ad#esely a$d i$ !+e "o$"ep! o& ow$es si$"e !+e ealy 4'<)s. I$ &a"! s+e +as s%bmi!!ed !a9 de"laa!io$s "o#ei$, !+e la$d way ba"2 i$ 4'<0 !+a! appeaed i$ +e &a!+e?s $ame. #atividad Sts. Ana 0ictoria v. Repu)lic of the Philippines, G.R. =o. 4K'K(. %$e 0 *)44 R.A. =o. *; e"o$s!i!%!io$ o& !i!le. T+e $o$B"omplia$"e wi!+ !+e eH%ieme$!s pes"ibed i$ Se"!io$s 4* a$d 4( o& R.A. =o. * is &a!al. 8e$"e !+e !ial "o%! did $o! a"H%ie %isdi"!io$ o#e !+e pe!i!io$ &o e"o$s!i!%!io$. T+e S%peme Co%! as ealy as 4'0* %led !+a! Rep%bli" A"! =o. * e$!i!led /A$ a"! po#idi$, a spe"ial po"ed%e &o !+e e"o$s!i!%!io$ o& Toe$s Ce!i&i"a!es o& Ti!le los! o des!oyed7 appo#ed o$ Sep!embe *5 4'< "o$&es %isdi"!io$ o a%!+oi!y !o !+e Co%! o& Fis! I$s!a$"e !o +ea a$d de"ide pe!i!io$s &o %di"ial e"o$s!i!%!io$. T+e A"! spe"i&i"ally po#ides !+e spe"ial eH%ieme$!s a$d mode o& po"ed%e !+a! m%s! be &ollowed be&oe !+e "o%! "a$ popely a"! ass%me a$d a"H%ie %isdi"!io$ o a%!+oi!y o#e !+e pe!i!io$ a$d ,a$! !+e e"o$s!i!%!io$ payed &o. T+ese eH%ieme$!s a$d po"ed%e ae ma$da!oy. T+e >e!i!io$ &o Re"o$s!i!%!io$ m%s! alle,e "e!ai$ spe"i&i" %isdi"!io$al &a"!s; !+e $o!i"e o& +eai$, m%s! be p%blis+ed i$ !+e O&&i"ial Ga-e!!e a$d pos!ed i$ pa!i"%la pla"es a$d !+e same se$! o $o!i&ied !o spe"i&ied peso$s. Se"!io$s 4* a$d 4( o& !+e A"! po#ide
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o !+e po"eedi$, will be %!!ely #oid W+e$ !+e !ial "o%! la"2s %isdi"!io$ !o !a2e "o,$i-a$"e o& a "ase i! la"2s a%!+oi!y o#e !+e w+ole "ase a$d all i!s aspe"!s. All !+e po"eedi$,s be&oe !+e !ial "o%! i$"l%di$, i!s ode ,a$!i$, !+e pe!i!io$ &o e"o$s!i!%!io$ ae #oid &o la"2 o& %isdi"!io$. Bien)enido !astillo vs. Repu)lic of the Philippines, G.R. =o. 40*'0). %$e ** *)44 La$d; alie$able a$d disposable "+aa"!e; s%&&i"ie$! e#ide$"e. T+e Ad#a$"e >la$s a$d Co$solida!ed >la$s ae +adly !+e "ompe!e$! pie"es o& e#ide$"e !+a! !+e law eH%ies. T+e $o!a!io$ by a ,eode!i" e$,i$ee o$ !+e s%#ey pla$s !+a! pope!ies ae alie$able a$d disposable does $o! s%&&i"e !o po#e !+ese la$ds? "lassi&i"a!io$. Repu)lic v. .A.#. Properties, Inc. die"!s !+a!: DT>'" al!a$& fo# #"*!s&#a&!o$ +,s& #"s"$& a o- of &'" o#!*!$al lass!f!a&!o$ a#o3" - &'" DENR S"#"&a#- a$ "#&!f!" as a &#," o- - &'" l"*al ,s&o!a$ of &'" off!!al #"o#s. T+ese &a"!s m%s! be es!ablis+ed !o po#e !+a! !+e la$d is alie$able a$d disposable. Respo$de$! &ailed !o do so be"a%se !+e "e!i&i"a!io$s pese$!ed by espo$de$! do $o! by !+emsel#es po#e !+a! !+e la$d is alie$able a$d disposable. 3emp+asis a$d %$des"oi$, s%pplied6
4nion Leaf o)acco !orp., Rep. its Pres. /r. 9ilarion P. 4y v. Repu)lic of the Philippines, ".R. #o. $%&'%<. /arch $', +$$ >.@. =o. 45*'; al!ea!io$s !o !i!les. >e!i!io$e is see2i$, elie& %$de !+e po#isio$s o& Se"!io$ 4)0 o& >@ =o. 45*' o!+ewise 2$ow$ as !+e >ope!y Re,is!a!io$ @e"ee 3&omely Se"!io$ 44* o& A"! =o. <' o!+ewise 2$ow$ as !+e La$d Re,is!a!io$ A"!6 w+i"+ po#ides as &ollows: Se"!io$ 4)0. A(end(ent and alteration of certificates. =o eas%e al!ea!io$ o ame$dme$! s+all be made %po$ !+e e,is!a!io$ boo2 a&!e !+e e$!y o& a "e!i&i"a!e o& !i!le o o& a memoa$d%m !+eeo$ a$d !+e a!!es!a!io$ o& !+e same by !+e Re,is!e o& @eeds e9"ep! by ode o& !+e pope Co%! o& Fis! I$s!a$"e. A e,is!eed ow$e o o!+e peso$ +a#i$, a$ i$!ees! i$ e,is!eed pope!y o i$ pope "ases !+e Re,is!e o& @eeds wi!+ !+e appo#al o& !+e Commissio$e o& La$d Re,is!a!io$ may apply by pe!i!io$ !o !+e "o%! %po$ !+e ,o%$d !+a! !+e e,is!eed i$!ees!s o& a$y des"ip!io$ w+e!+e #es!ed "o$!i$,e$! e9pe"!a$! o i$"+oa!e appeai$, o$ !+e "e!i&i"a!e +a#e !emi$a!ed a$d "eased; o !+a! $ew i$!ees! $o! appeai$, %po$ !+e "e!i&i"a!e +a#e aise$ o bee$ "ea!ed; o !+a! a$ omissio$ o eo was made i$ e$!ei$, a "e!i&i"a!e o a$y memoa$d%m !+eeo$ o o$ a$y d%pli"a!e "e!i&i"a!e; o !+a! !+e same o a$y peso$ o$ !+e "e!i&i"a!e +as bee$ "+a$,ed; o !+a! !+e e,is!eed ow$e +as maied o i& e,is!eed as maied !+a! !+e maia,e +as bee$ !emi$a!ed a$d $o i,+! o i$!ees!s o& +eis o "edi!os will !+eeby be a&&e"!ed; o !+a! a "opoa!io$ w+i"+ ow$ed e,is!eed la$d a$d +as bee$ dissol#ed +as $o! "o$#e$ed !+e same wi!+i$ !+ee yeas a&!e i!s dissol%!io$; o %po$ a$y o!+e easo$able ,o%$d; a$d !+e "o%! may +ea a$d de!emi$e !+e pe!i!io$ a&!e $o!i"e !o all pa!ies i$ i$!ees! a$d may ode !+e e$!y o "a$"ella!io$ o& a $ew "e!i&i"a!e !+e e$!y o "a$"ella!io$ o& a memoa$d%m %po$ a "e!i&i"a!e o ,a$! a$y o!+e elie& %po$ s%"+ !ems a$d "o$di!io$s eH%ii$, se"%i!y o bo$d i& $e"essay as i! may "o$side pope; >o#ided +owe#e T+a! !+is se"!io$ s+all $o! be "o$s!%ed !o ,i#e !+e "o%! a%!+oi!y !o eope$ !+e %d,me$! o de"ee o& e,is!a!io$ a$d !+a! $o!+i$, s+all be do$e o odeed by !+e "o%! w+i"+ s+all impai !+e !i!le o o!+e i$!ees! o& a p%"+ase +oldi$, a "e!i&i"a!e &o #al%e a$d i$ ,ood &ai!+ o +is +eis a$d assi,$s wi!+o%! +is o !+ei wi!!e$ "o$se$!. W+ee !+e ow$e?s d%pli"a!e "e!i&i"a!e is $o! pese$!ed a simila pe!i!io$ may be &iled as po#ided i$ !+e pe"edi$, se"!io$. All pe!i!io$s o mo!io$s &iled %$de !+is Se"!io$ as well as %$de a$y o!+e po#isio$ o& !+is @e"ee a&!e oi,i$al e,is!a!io$ s+all be &iled a$d e$!i!led i$ !+e oi,i$al "ase i$ w+i"+ !+e de"ee o e,is!a!io$ was e$!eed. W+ile !+e abo#eH%o!ed se"!io$ amo$, o!+e !+i$,s a%!+oi-es a peso$ i$ i$!ees! !o as2 !+e "o%! &o a$y eas%e al!ea!io$ o ame$dme$! o& a "e!i&i"a!e o& !i!le o o& a$y memoa$d%m appeai$, !+eei$ !+e pe#aili$, %le is !+a! po"eedi$,s !+ee%$de ae s%mmay i$ $a!%e "o$!empla!i$, "oe"!io$s o i$se!io$s o& mis!a2es w+i"+ ae o$ly "lei"al b%! "e!ai$ly $o! "o$!o#esial iss%es.Relie& %$de !+e said le,al po#isio$ "a$ o$ly be ,a$!ed i& !+ee is %$a$imi!y amo$, !+e pa!ies o !+a! !+ee is $o ad#ese "laim o seio%s obe"!io$ o$ !+e pa! o& a$y pa!y i$ i$!ees!. I$ !+e pese$! "ase !+ee is $o H%es!io$ !+a! !+ee is a seio%s obe"!io$ a$d a$ ad#ese "laim o$ !+e pa! o& a$ i$!ees!ed pa!y as s+ow$ by espo$de$!?s opposi!io$ a$d mo!io$ !o dismiss !+e pe!i!io$ &o "oe"!io$ o& e$!y &iled by pe!i!io$e. T+e abse$"e o& %$a$imi!y amo$, !+e pa!ies is also e#ide$"ed by espo$de$!?s a"!io$ &o dama,es a$d a$$%lme$! o& pe!i!io$e?s !i!le o#e !+e s%be"! pa"el o& la$d do"2e!ed as Ci#il Case =o. <4
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e"o%se !+e$ is !o e,is!e !+e same wi!+ !+e Re,is!e o& @eeds o& %la"a$. Philippine 0eterans Bank v. Ra(on 0alen5uela, ".R. #o. $'<&<, /arch -, +$$. >.@. =o. 45*'; eH%isi!es o& e,is!a!io$ o& !i!le. ased o$ !+ese le,al paame!es appli"a$!s &o e,is!a!io$ o& !i!le %$de Se"!io$ 4<346 m%s! s%&&i"ie$!ly es!ablis+: 3 $6 !+a! !+e s%be"! la$d &oms pa! o& !+e disposable a$d alie$able la$ds o& !+e p%bli" domai$; 3+6 !+a! !+e appli"a$! a$d +is pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ o& !+e same; a$d 3 <6 !+a! i! is %$de a )ona fide "laim o& ow$es+ip si$"e %$e 4* 4'<5 o ealie. T+ese !+e espo$de$!s m%s! po#e by $o less !+a$ "lea posi!i#e a$d "o$#i$"i$, e#ide$"e. Repu)lic of the Philippines vs. ;uanito /ani(ti(, et al., ".R. #o. $'-&--, /arch $', +$$ >.@. =o. 45*'; eH%isi!es &o e,is!a!io$ o& !i!le. E9is!i$, law a$d %isp%de$"e po#ides !+a! a$ appli"a$! &o %di"ial "o$&ima!io$ o& impe&e"! !i!le m%s! po#e "omplia$"e wi!+ Se"!io$ 4< o& >eside$!ial @e"ee 3>[email protected] =o. 45*' o !+e >ope!y Re,is!a!io$ @e"ee. T+e pe!i$e$! po!io$s o& Se"!io$ 4< po#ide: SEC. 4<. ho (ay apply.T+e &ollowi$, peso$s may &ile i$ !+e pope Co%! o& Fis! I$s!a$"e a$ appli"a!io$ &o e,is!a!io$ o& !i!le !o la$d w+e!+e peso$ally o !+o%,+ !+ei d%ly a%!+oi-ed epese$!a!i#es: 346 T+ose w+o by !+emsel#es o !+o%,+ !+ei pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ o& alie$able a$d disposable la$ds o& !+e p%bli" domai$ %$de a )ona fide "laim o& ow$es+ip si$"e %$e 4* 4'<5 o ealie. 3*6 T+ose w+o +a#e a"H%ied ow$es+ip o& pi#a!e la$ds by pes"ip!io$ %$de !+e po#isio$s o& e9is!i$, laws. 9 9 9 9 U$de Se"!io$ 4< 346 appli"a$!s &o e,is!a!io$ o& !i!le m%s! s%&&i"ie$!ly es!ablis+ first, !+a! !+e s%be"! la$d &oms pa! o& !+e disposable a$d alie$able la$ds o& !+e p%bli" domai$; second !+a! !+e appli"a$! a$d +is pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ o& !+e same; a$d third, !+a! i! is %$de a )ona fide "laim o& ow$es+ip si$"e %$e 4* 4'<5 o ealie. Repu)lic of the Philippines v. eodoro P. Ri5alvo, ;r., ".R. #o. $2+$$, /arch 2, +$$. >%bli" La$d A"!. U$de Se"!io$ <03b6 o& !+e >%bli" La$d A"! as ame$ded by >.@. 4)K( i$ ode !+a! pe!i!io$es? appli"a!io$ &o e,is!a!io$ o& !i!le may be ,a$!ed !+ey m%s! &is! es!ablis+ !+e &ollowi$,: 346 !+a! !+e s%be"! la$d &oms pa! o& !+e disposable a$d alie$able la$ds o& !+e p%bli" domai$ a$d 3*6 !+a! !+ey +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ o& !+e same %$de a )ona fide "laim o& ow$es+ip si$"e %$e 4* 4'<5 o ealie. Appli"a$!s m%s! o#e"ome !+e pes%mp!io$ !+a! !+e la$d !+ey ae applyi$, &o is pa! o& !+e p%bli" domai$ a$d !+a! !+ey +a#e a$ i$!ees! !+eei$ s%&&i"ie$! !o waa$! e,is!a!io$ i$ !+ei $ames aisi$, &om a$ impe&e"! !i!le. 0icente =u !hang and Soledad =u !hang v. Repu)lic of the Philippines; G.R. =o. 4K4K*. Feb%ay *( *)44. Re"o$s!i!%!io$ o& !i!le Rep%bli" A"! =o. *. T+e e"o$s!i!%!io$ o& a "e!i&i"a!e o& !i!le de$o!es es!oa!io$ i$ !+e oi,i$al &om a$d "o$di!io$ o& a los! o des!oyed i$s!%me$! a!!es!i$, !+e !i!le o& a peso$ !o a pie"e o& la$d. T+e p%pose o& !+e e"o$s!i!%!io$ o& !i!le is !o +a#e a&!e obse#i$, !+e po"ed%es pes"ibed by law !+e !i!le epod%"ed i$ e9a"!ly !+e same way i! +as bee$ w+e$ !+e loss o des!%"!io$ o""%ed. T+e los! o des!oyed do"%me$! e&eed !o is !+e o$e !+a! is i$ !+e "%s!ody o& !+e Re,is!e o& @eeds. W+e$ e"o$s!i!%!io$ is odeed !+is do"%me$! is epla"ed wi!+ a $ew o$e!+e e"o$s!i!%!ed !i!le!+a! basi"ally epod%"es !+e oi,i$al. A&!e !+e e"o$s!i!%!io$ !+e* ow$e is iss%ed a d%pli"a!e "opy o& for !+ethe !i!le. is spe"i&i"ally Se"!io$ 4 o& reconstituted Rep%bli" A"! =o. An Act Providing a Special Procedure Reconstitution of T+is orrens !ertificates ofpo#ided itle Lost%$de or estroyed w+i"+ s!a!es: Se". 4. A&!e !+e e"o$s!i!%!io$ o& a "e!i&i"a!e o& !i!le %$de !+e po#isio$s o& !+is A"! !+e e,is!e o& deeds s+all iss%e !+e "oespo$di$, ow$e?s d%pli"a!e a$d !+e addi!io$al "opies o& said "e!i&i"a!es o& !i!le i& a$y +ad bee$ pe#io%sly iss%ed w+ee s%"+ ow$e?s d%pli"a!e a$dJo addi!io$al "opies +a#e bee$ des!oyed o los!. T+is &a"! s+all be $o!ed o$ !+e e"o$s!i!%!ed "e!i&i"a!e o& !i!le. >e!i!io$e we$! !o ,ea! le$,!+s !o "o$#i$"e !+e CA !+a! !+e ode &o !+e iss%a$"e o& a d%pli"a!e !i!le !o espo$de$!s was
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"e!i&i"a!e o& !i!le was o$ly a$ o&&s+oo! o& i!s +a#i$, ,a$!ed !+e pe!i!io$ &o e"o$s!i!%!io$ o& !i!le. Wi!+o%! !+e ode &o e"o$s!i!%!io$ !+e ode !o iss%e a $ew ow$e?s d%pli"a!e !i!le +ad $o le, !o s!a$d o$. Moe impo!a$!ly i! wo%ld +a#e bee$ impossible &o !+e Re,is!e o& @eeds !o "omply wi!+ s%"+ ode. T+e Re,is!e o& @eeds "a$$o! iss%e a d%pli"a!e o& a do"%me$! !+a! i! does $o! +a#e. T+e oi,i$al "opy o& !+e "e!i&i"a!e o& !i!le was b%$ed a$d !+e Re,is!e o& @eeds does $o! +a#e a e"o$s!i!%!ed !i!le. T+%s i! does $o! +a#e a "e!i&i"a!e o& !i!le !+a! i! "a$ epod%"e as !+e $ew ow$e?s d%pli"a!e !i!le. Repu)lic of the Philippines v. !andido 0ergel de ios, et al.> G.R. =o. 4K)<5'. Feb%ay ' *)44. >ope!y e,is!a!io$; poo& o& alie$able "+aa"!e; poo& o& possessio$. U$de !+e Re,alia$ do"!i$e all la$ds o& !+e p%bli" domai$ belo$, !o !+e S!a!e. All la$ds $o! appeai$, !o be "lealy wi!+i$ pi#a!e ow$es+ip ae pes%med !o belo$, !o !+e S!a!e. T+e b%de$ o& poo& i$ o#e"omi$, !+e pes%mp!io$ o& S!a!e ow$es+ip o& !+e la$ds o& !+e p%bli" domai$ is o$ !+e peso$ applyi$, &o la$d e,is!a!io$ 3o!+e "laimi$, ow$es+ip6. Toiso#e"ome !+is pes%mp!io$ i$"o$!o#e!ible e#ide$"e m%s! be es!ablis+ed !+a! !+e s%be"! o& appli"a!io$ 3o "laim6 alie$able o disposable. To s%ppo! i!s "o$!e$!io$ !+a! !+e la$d s%be"! o& !+e appli"a!io$ &o e,is!a!io$ is alie$able espo$de$!s pese$!ed !+e s%#ey pla$ wi!+ !+e &ollowi$, a$$o!a!io$: T+is s%#ey is i$side L.C. Map =o. **( >o. =o. *KB "lasi&ied as alie$ableJdisposable by !+e %ea% o& Foes! @e#elopme$! %e-o$ Ci!y o$ a$. )( 4'0. T+e s%#eyo?s a$$o!a!io$ pese$!ed by espo$de$!s is $o! !+e 2i$d o& poo& eH%ied by law !o po#e !+a! !+e s%be"! la$d &alls wi!+i$ !+e alie$able a$d disposable -o$e. Respo$de$!s &ailed !o s%bmi! a "e!i&i"a!io$ &om !+e pope ,o#e$me$! a,e$"y !o es!ablis+ !+a! !+e s%be"! la$d ae pa! o& !+e alie$able a$d disposable po!io$ o& !+e p%bli" domai$. I$ !+e abse$"e o& i$"o$!o#e!ible e#ide$"e !o po#e !+a! !+e s%be"! pope!y is aleady "lassi&ied as alie$able a$d disposable we m%s! "o$side !+e same as s!ill i$alie$able p%bli" domai$. A$e$! espo$de$!s? possessio$ a$d o""%pa!io$ o& !+e s%be"! pope!y a eadi$, o& !+e e"ods &ailed !o s+ow !+a! !+e espo$de$!s by !+emsel#es o !+o%,+ !+ei pede"essosBi$Bi$!ees! possessed a$d o""%pied !+e s%be"! la$d si$"e %$e 4* 4'<5 o ealie. T+e e#ide$"e s%bmi!!ed by espo$de$!s !o po#e !+ei possessio$ a$d o""%pa!io$ o#e !+e s%be"! pope!y "o$sis!s o& !+e !es!imo$ies o& ose a$d Amado Geo$imo 3Amado6 !+e !e$a$! o& !+e ada"e$! lo!. 8owe#e !+ei !es!imo$ies &ailed !o es!ablis+ espo$de$!s? pede"essosBi$Bi$!ees!? possessio$ a$d o""%pa!io$ o& s%be"! pope!y si$"e %$e 4* 4'<5 o ealie. %! ose a$d Amado?s !es!imo$ies "o$sis! meely o& ,e$eal s!a!eme$!s wi!+ $o spe"i&i" de!ails as !o w+e$ espo$de$!s? pede"essosBi$Bi$!ees! be,a$ a"!%al o""%pa$"y o& !+e la$d s%be"! o& !+is "ase. I! is a %le !+a! ,e$eal s!a!eme$!s !+a! ae mee "o$"l%sio$s o& law a$d $o! &a"!%al poo& o& possessio$ ae %$a#aili$, a$d "a$$o! s%&&i"e. A$ appli"a$! i$ a la$d e,is!a!io$ "ase "a$$o! %s! +ap o$ mee "o$"l%sio$s o& law !o embellis+ !+e appli"a!io$ b%! m%s! impess !+ee!o !+e &a"!s a$d "i"%ms!a$"es e#ide$"i$, !+e alle,ed ow$es+ip a$d possessio$ o& !+e la$d. Respo$de$!s? ealies! e#ide$"e "a$ be !a"ed ba"2 !o a !a9 de"laa!io$ iss%ed i$ !+e $ame o& !+ei pede"essosBi$Bi$!ees! o$ly i$ !+e yea 4'<'. A! bes! espo$de$!s "a$ o$ly po#e possessio$ si$"e said da!e. W+a! is eH%ied is ope$ e9"l%si#e "o$!i$%o%s a$d $o!oio%s possessio$ by espo$de$!s a$d !+ei pede"essosBi$Bi$!ees! %$de a )ona fide "laim o& ow$es+ip since ;une $+, $-*& o ealie. Well se!!led is !+e %le !+a! !a9 de"laa!io$s a$d e"eip!s ae $o! "o$"l%si#e e#ide$"e o& ow$es+ip o o& !+e i,+! !o possess la$d w+e$ $o! s%ppo!ed by a$y o!+e e#ide$"e. 0itarich !orporation vs. !hona Locsin, ".R. #o. $2$'<$, #ove()er $&, +$. >ope!y; e,is!a!io$; a$"es!al la$ds. T+e appli"a!io$ &o iss%a$"e o& a Ce!i&i"a!e o& A$"es!al La$d Ti!le pe$di$, be&oe !+e =CI> is a2i$ !o a e,is!a!io$ po"eedi$,. I! also see2s a$ o&&i"ial e"o,$i!io$ o& o$e?s "laim !o a pa!i"%la la$d a$d is also in re(. T+e !i!li$, o& a$"es!al la$ds is &o !+e p%pose o& /o&&i"ially es!ablis+i$,7 o$e?s la$d as a$ a$"es!al la$d. %s! li2e a e,is!a!io$ po"eedi$, !+e !i!li$, o& a$"es!al la$ds does $o! #es! ow$es+ip %po$ !+e appli"a$! b%! o$ly e"o,$i-es ow$es+ip !+a! +as aleady #es!ed i$ !+e appli"a$! by #i!%e o& +is a$d +is pede"essoBi$Bi$!ees!?s possessio$ o& !+e pope!y si$"e !ime immemoial. A e,is!a!io$ po"eedi$, is $o! a "o$"l%si#e ad%di"a!io$ o& ow$es+ip. I$ &a"! i& i! is la!e o$ &o%$d i$ a$o!+e "ase 3w+ee !+e iss%e o& ow$es+ip is sH%aely ad%di"a!ed6 !+a! !+e e,is!a$! is $o! !+e ow$e o& !+e pope!y !+e eal ow$e "a$ &ile a e"o$#eya$"e "ase a$d +a#e !+e !i!le !a$s&eed !o +is $ame. elfin La(sis, et al. vs. /argarita Se(on ong8e>".R. #o. $2<+$, 3cto)er
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T+%s be&oe a$ appli"a$! "a$ add%"e e#ide$"e o& ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ o& !+e pope!y i$ H%es!io$ +e m%s! &is! po#e !+a! !+e la$d belo$,s !o !+e alie$able a$d disposable la$ds o& !+e p%bli" domai$. I! is do"!i$al !+a! %$de !+e Re,alia$ do"!i$e all la$ds o& !+e p%bli" domai$ pe!ai$ !o !+e S!a!e a$d !+e la!!e is !+e &o%$da!io$ o& a$y asse!ed i,+! !o ow$es+ip i$ la$d. A""odi$,ly !+e S!a!e pes%mably ow$s all la$ds $o! o!+ewise appeai$, !o be "lealy wi!+i$ pi#a!e ow$es+ip. To o#e"ome s%"+ pes%mp!io$ ie&%!able e#ide$"e m%s! be s+ow$ by !+e appli"a$! !+a! !+e la$d s%be"! o& e,is!a!io$ +as bee$ de"lassi&ied a$d $ow belo$,s !o !+e alie$able a$d disposable po!io$ o& !+e p%bli" domai$. Repu)lic of the Philippines vs. ;ose . !hing represented )y his Attorney8in8fact, Antonio 0. !hing> ".R. #o. $%'$'', 3cto)er +, +$. >ope!y Re,is!a!io$ @e"ee; le#y o$ e9e"%!io$ #es%s s%bseH%e$! e,is!a!io$ o& sale. T+e S%peme Co%! i$ !+is "ase %led o$ !+e iss%e o& w+e!+e o $o! a le#y o$ e9e"%!io$ is s%peio !o !+e s%bseH%e$! e,is!a!io$ o& a deed o& sale. I! +eld !+a! a pio e,is!a!io$ o& a lie$ "ea!es a pe&ee$"e e#e$ !+o%,+ !+e sale o& !+e la$d !o pe!i!io$e !oo2 pla"e be&oe !+e %d,me$! o& !+e &a#o o&o& a pa!y !+e iss%a$"e o& !+e wi! o& e9e"%!io$ pope!y i$ H%es!io$. Fail%e e,is!esale. !+e sale!ial wi!+"o%! !+e i$ Re,is!e @eedsa$d $e,a!ed a$y pioi!y w+i"+ !+e b%yeo#e may!+e +a#e a"H%ied by #i!%e o& !+e!oealie Eleme$!ay is !+e %le !+a! i! is !+e a"! o& e,is!a!io$ w+i"+ ,i#es #alidi!y !o !a$s&e o lie$s "ea!ed %po$ la$d e,is!eed %$de !+e Toe$s Sys!em. T+is is "lea i$ Se"!io$ 54 a$d Se"!io$ 5* o& >eside$!ial @e"ee =o. 45*' also 2$ow$ as !+e >ope!y Re,is!a!io$ @e"ee. Co$sidei$, !+a! !+e sale was $o! e,is!eed ealie !+e i,+! o& pe!i!io$e o#e !+e la$d be"ame s%bodi$a!e a$d s%be"! !o !+e pe&ee$"e "ea!ed o#e !+e ealie a$$o!a!ed le#y i$ &a#o o& Swi&!. T+e le#y o& e9e"%!io$ e,is!eed a$d a$$o!a!ed o$ Sep!embe 4 4''0 !a2es pe"ede$"e o#e !+e sale o& !+e la$d !o pe!i!io$e o$ Feb%ay 4 4''K despi!e !+e s%bseH%e$! e,is!a!io$ o$ Sep!embe 4< 4''0 o& !+e pio sale. S%"+ pe&ee$"e i$ &a#o o& !+e le#y o$ e9e"%!io$ e!oa"!s !o !+e da!e o& le#y &o !o +old o!+ewise will e$de !+e pe&ee$"e $%,a!oy a$d mea$i$,less. T+e S%peme Co%! +ad made a simila %li$, i$ 0aldevieso v. a(alerio. ;ay 9idalgo 4y vs. Spouses rancisco /edina and #atividad /edina, et al., ".R. #o. $2+&*$, August %, +$. >ope!y Re,is!a!io$ @e"ee; possessio$ o& la$d; impa"! o& !a9 de"laa!io$s a$d !a9 payme$!s. I$ a$ oi,i$al e,is!a!io$ o& !i!le %$de Se"!io$ 4<346 >.@. =o. 45*' !+e appli"a$! &o e,is!a!io$ m%s! be able !o es!ablis+ by e#ide$"e !+a! +e a$d +is pede"essoBi$Bi$!ees! +a#e e9e"ised a"!s o& domi$io$ o#e !+e lo! %$de a )ona fide "laim o& ow$es+ip si$"e %$e 4* 4'<5 o ealie. 8e m%s! po#e !+a! &o a! leas! () yeas +e a$d +is pede"esso +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ o& !+e la$d. Fom !+e e"ods i! is "lea !+a! espo$de$!s? possessio$ !+o%,+ !+ei pede"essoBi$Bi$!ees! da!es ba"2 !o as ealy as 4'(K. I$ !+a! yea !+e s%be"! pope!y +ad aleady bee$ de"laed &o !a9a!io$ by e$aida?s &a!+e Se,io oi$!ly wi!+ a "e!ai$ Toibia Mia$da 3Toibia6. Ye! i! also "a$ be sa&ely i$&eed !+a! Se,io a$d Toibia +ad de"laed !+e la$d &o !a9a!io$ e#e$ ealie be"a%se !+e 4'(K !a9 de"laa!io$ s+ows !+a! i! o&&se!s a pe#io%s !a9 $%mbe. T+e pope!y was a,ai$ de"laed i$ 4'K' 4'05 a$d 4''< by Se,io Toibia a$d by Rom%aldo. Ce!ai$ly espo$de$!s "o%ld +a#e pod%"ed moe poo& o& !+is 2i$d +ad i! $o! bee$ &o !+e &a"! !+a! as "e!i&ied by !+e O&&i"e o& !+e Ri-al >o#i$"ial Assesso !+e ele#a$! po!io$s o& !+e !a9 e"ods o$ &ile wi!+ i! +ad bee$ b%$ed w+e$ !+e assesso?s o&&i"e was a-ed by &ie i$ 4''K. O& eH%al ele#a$"e is !+e &a"! !+a! wi!+ !+ese !a9 assessme$!s !+ee "ame $e9! !a9 payme$!s. Respo$de$!s? e"eip!s &o !a9 e9pe$di!%es o$ Lo! =os. < a$d 5 be!wee$ 4'KK a$d *))4 ae li2ewise &les+ed o%! i$ !+e e"ods a$d i$ !+ese do"%me$!s Se,io Toibia a$d Rom%aldo ae !+e $amed ow$es o& !+e pope!y wi!+ e$aida bei$, ide$!i&ied as !+e o$e w+o deli#eed !+e payme$! i$ !+e 4''< e"eip!s. T+e &oe,oi$, e#ide$!iay ma!!es a$d m%$ime$!s "lealy s+ow !+a! e$aida?s !es!imo$y i$ !+is espe"! is $o less belie#able. A$d !+e %$bo2e$ "+ai$ o& posi!i#e a"!s e9e"ised by espo$de$!s? pede"essos as demo$s!a!ed by !+ese pie"es o& e#ide$"e yields $o o!+e "o$"l%sio$ !+a$ !+a! as ealy as 4'(K !+ey +ad aleady demo$s!a!ed a$ %$mis!a2able "laim !o !+e pope!y. =o! o$ly do !+ey s+ow !+a! !+ey +ad e9"l%ded all o!+es i$ !+ei "laim b%! also !+a! s%"+ "laim is i$ all ,ood &ai!+. La$d e,is!a!io$ po"eedi$,s ae ,o#e$ed by !+e %le !+a! w+ile !a9 de"laa!io$s a$d eal!y !a9 payme$! ae $o! "o$"l%si#e e#ide$"e o& ow$es+ip $e#e!+eless !+ey ae a ,ood i$di"a!io$ o& possessio$ i$ !+e "o$"ep! o& ow$e. T+ese do"%me$!s "o$s!i!%!e a! leas! poo& !+a! !+e +olde +as a "laim o& !i!le o#e !+e pope!y &o $o o$e i$ +is i,+! mi$d wo%ld be payi$, !a9es &o a pope!y !+a! is $o! i$ +is a"!%al o a! leas! "o$s!%"!i#e possessio$. T+e #ol%$!ay de"laa!io$ o& a pie"e o& pope!y &o !a9a!io$ p%poses ma$i&es!s $o! o$ly o$e?s si$"ee a$d +o$es! desie !o ob!ai$ !i!le !o !+e pope!y. I! also a$$o%$"es +is ad#ese "laim a,ai$s! !+e s!a!e a$d all o!+e pa!ies w+o may be i$ "o$&li"! wi!+ +is i$!ees!. Moe impo!a$!ly i! si,$i&ies a$ %$&ei,$ed i$!e$!io$ !o "o$!ib%!e !o ,o#e$me$! e#e$%esa$ a"! !+a! s!e$,!+e$s o$e?s )ona fide "laim o& a"H%isi!io$ o& ow$es+i .
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>ope!y Re,is!a!io$ @e"ee; !i!le i$de&easible %$de Toe$ Sys!em; i,+! !o ee"! "a$$o! be baed by la"+es. OCT =o. >B ()() was de"laed #alid by !+e !ial "o%! a$d espo$de$!s do $o! H%es!io$ !+e !i!le?s #alidi!y. U$de !+e Toe$s Sys!em o& e,is!a!io$ a$ OCT be"omes i$de&easible a$d i$"o$!o#e!ible o$e yea a&!e i!s &i$al de"ee. I! is a &%$dame$!al pi$"iple i$ la$d e,is!a!io$ !+a! !+e "e!i&i"a!e o& !i!le se#es as e#ide$"e o& a$ i$de&easible a$d i$"o$!o#e!ible !i!le !o a pope!y i$ &a#o o& !+e peso$ w+ose $ame appeas !+eei$. T+e !ial "o%!?s %li$, !+a! pe!i!io$e +ad a lo$, a$d %$e9plai$ed i$a"!io$ i$ asse!i$, +is "laim o#e !+e s%be"! pope!y a$d +e$"e is baed by la"+es &om e"o#ei$, +is pope!y is wi!+o%! basis. >e!i!io$e +as a #alid !i!le o#e +is pope!y 3i.e. !+e la$d "o#eed by OCT >B()()6. As a e,is!eed ow$e pe!i!io$e +as a i,+! !o ee"! a$y peso$ ille,ally o""%pyi$, +is pope!y. T+is i,+! is impes"ip!ible a$d "a$ $e#e be baed by la"+es. "audencio La)rador represented )y Lulu La)rador 4son as Attorney8in8act vs. Spouses Ildefonso Perlas and Pacencia Perlas, et al., ".R. #o. $2<-, August %, +$.
>ope!y Re,is!a!io$ @e"ee; i$de&easible %$de Toe$sa$d Sys!em; de"laa!io$. A de"ee e,is!a!io$ "o$"l%si#e %po$ all peso$s i$"l%di$, !+e!i!le Go#e$me$! o& !+e Rep%bli" all i!s!a9 ba$"+es w+e!+e o $o!o&me$!io$ed by is $ame i$ !+e appli"a!io$ &o e,is!a!io$ o i!s $o!i"e. I$deed !i!le !o !+e la$d o$"e e,is!eed is impes"ip!ible. =o o$e may a"H%ie i! &om !+e e,is!eed ow$e by ad#ese ope$ a$d $o!oio%s possessio$. T+%s !o a e,is!eed ow$e %$de !+e Toe$s sys!em !+e i,+! !o e"o#e possessio$ o& !+e e,is!eed pope!y is eH%ally impes"ip!ible si$"e possessio$ is a mee "o$seH%e$"e o& ow$es+ip. 8ee !+e e9is!e$"e a$d ,e$%i$e$ess o& !+e Me$do-as? !i!le o#e !+e pope!y +as $o! bee$ disp%!ed. T+a! !+e Ci!y Go#e$me$! o& Lipa !a9Bde"laed !+e pope!y a$d i!s impo#eme$!s i$ i!s $ame "a$$o! de&ea! !+e Me$do-as? !i!le. T+e S%peme Co%! +as allowed !a9 de"laa!io$s !o s!a$d as poo& o& ow$es+ip o$ly i$ !+e abse$"e o& a "e!i&i"a!e o& !i!le. O!+ewise !+ey +a#e li!!le e#ide$!iay wei,+! as poo& o& ow$es+ip. Repu)lic of the Philippines vs. Pri(o /endo5a and /aria Lucero, ".R. #o. $%&-$, August %, +$. >ope!y; la$d i$"l%ded i$ !i!le by mis!a2e. Se!!led is !+e %le !+a! a peso$ w+ose "e!i&i"a!e o& !i!le i$"l%ded by mis!a2e o o#esi,+! !+e la$d ow$ed by a$o!+e does $o! be"ome !+e ow$e o& s%"+ la$d by #i!%e o& !+e "e!i&i"a!e alo$e. T+e Toe$s Sys!em is i$!e$ded !o ,%aa$!ee !+e i$!e,i!y a$d "o$"l%si#e$ess o& !+e "e!i&i"a!e o& e,is!a!io$ b%! is $o! i$!e$ded !o pepe!a!e &a%d a,ai$s! !+e eal ow$e o& !+e la$d. T+e "e!i&i"a!e o& !i!le "a$$o! be %sed !o po!e"! a %s%pe &om !+e !%e ow$e. Spouses ederico 0alen5uela and Lu5 Buena80alen5uela 0s. Spouses ;ose /ano , ;r. and Rosanna Reyes8/ano, ".R. #o. $2+'$$, ;uly -, +$. >ope!y e,is!a!io$; eH%ieme$!s. A$ appli"a!io$ &o e,is!a!io$ o& !i!le m%s! %$de Se"!io$ 4<346 >.@. 45*' mee! !+ee eH%ieme$!s: a6 !+a! !+e pope!y is alie$able a$d disposable la$d o& !+e p%bli" domai$; b6 !+a! !+e appli"a$!s by !+emsel#es o !+o%,+ !+ei pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ o& !+e la$d; a$d "6 !+a! s%"+ possessio$ is %$de a )ona fide "laim o& ow$es+ip si$"e %$e 4* 4'<5 o ealie. U$de !+e Re,alia$ do"!i$e all la$ds o& !+e p%bli" domai$ belo$, !o !+e S!a!e a$d !+e la!!e is !+e so%"e o& a$y asse!ed i,+! !o ow$es+ip i$ la$d. T+%s !+e S!a!e pes%mably ow$s all la$ds $o! o!+ewise appeai$, !o be "lealy wi!+i$ pi#a!e ow$es+ip. To o#e"ome s%"+ pes%mp!io$ i$"o$!o#e!ible e#ide$"e m%s! be s+ow$ by !+e appli"a$! !+a! !+e la$d s%be"! o& e,is!a!io$ is alie$able a$d disposable. Respe"!i$, !+e !+id eH%ieme$! !+e appli"a$! beas !+e b%de$ o& po#i$, !+e s!a!%s o& !+e la$d. I$ !+is "o$$e"!io$ !+e Co%! +as +eld !+a! +e m%s! pese$! a "e!i&i"a!e o& la$d "lassi&i"a!io$ s!a!%s iss%ed by !+e Comm%$i!y E$#io$me$! a$d =a!%al Reso%"es O&&i"e 3CE=RO6 o !+e >o#i$"ial E$#io$me$! a$d =a!%al Reso%"es O&&i"e 3>E=RO6 o& !+e @E=R. 8e m%s! also po#e !+a! !+e @E=R Se"e!ay +ad appo#ed !+e la$d "lassi&i"a!io$ a$d eleased !+e la$d as alie$able a$d disposable a$d !+a! i! is wi!+i$ !+e appo#ed aea pe #ei&i"a!io$ !+o%,+ s%#ey by !+e CE=RO o >E=RO. F%!+e !+e appli"a$! m%s! pese$! a "opy o& !+e oi,i$al "lassi&i"a!io$ appo#ed by !+e @E=R Se"e!ay a$d "e!i&ied as !%e "opy by !+e le,al "%s!odia$ o& !+e o&&i"ial e"ods. T+ese &a"!s m%s! be es!ablis+ed by !+e appli"a$! !o po#e !+a! !+e la$d is alie$able a$d disposable. Repu)lic of the Philippines vs. Rosila Roche, ".R. #o. $2&%*', ;uly ', +$. >ope!y e,is!a!io$; w+o may apply. As !+e law $ow s!a$ds a mee s+owi$, o& possessio$ a$d o""%pa!io$ &o () yeas o moe is $o! s%&&i"ie$!. T+ee&oe si$"e !+e e&&e"!i#i!y o& >.@. 4)K( o$ a$%ay *5 4'KK i! m%s! $ow be s+ow$ !+a! possessio$ a$d o""%pa!io$ o& !+e pie"e o& la$d by !+e appli"a$! by +imsel& o !+o%,+ +is pede"essosBi$Bi$!ees! s!a!ed o$ %$e 4* 4'<5 o ealie. T+is po#isio$ is i$ !o!al "o$&omi!y wi!+ Se"!io$ 4< 346 o& >.@. 45*'. T+%s p%s%a$! !o !+e a&oeH%o!ed po#isio$s o& law appli"a$!s &o e,is!a!io$ o& !i!le m%s! po#e: 346 !+a! !+e s%be"! la$d &oms pa! o& !+e disposable a$d alie$able la$ds o& !+e p%bli" domai$ a$d 3*6 !+a! !+ey +a#e bee$ i$ ope$ "o$!i$%o%s
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>%bli" La$d A"!. T+e ma!!e a$d d%a!io$ o& !+e pe!i!io$es a$d !+ei pede"essos? possessio$ ae ele#a$! i$ #iew o& !+e pe!i!io$es? "o$!e$!io$ !+a! !+ey a"H%ied ow$es+ip o& Lo! 40K( !+o%,+ pes"ip!io$ i.e. !+e lapse o& !+e eH%isi!e ()Byea peiod po#ided i$ A!i"le 44(K o& !+e Ci#il Code. A!i"le 44(K s!a!es: A!i"le 44(K. Ow$es+ip a$d o!+e eal i,+!s o#e immo#ables also pes"ibe !+o%,+ %$i$!e%p!ed ad#ese possessio$ !+eeo& &o !+i!y yeas wi!+o%! $eed o& !i!le o o& ,ood &ai!+. T+e pe!i!io$es? elia$"e o$ A!i"le 44(K o& !+e Ci#il Code is $o! e$!iely a""%a!e. T+e pe!i!io$es alle,ed !+a! Lo! 40K( is a$ alie$able a$d disposable la$d o& !+e p%bli" domai$. 8owe#e a"H%isi!io$ o& ow$es+ip o#e aliena)le pu)lic lands is ,o#e$ed $o! by !+e ,e$eal po#isio$s o$ pes"ip!io$ i$ !+e Ci#il Code b%! moe pa!i"%laly by Commo$weal!+ A"! =o. 4<4 3!A $*$6 o !+e >%bli" La$d A"!. A!i"le 44(K o& !+e Ci#il Code a%!+oi-es a"H%isi!io$ by pes"ip!io$ o$ly o& pi#a!e la$ds $o! o& p%bli" la$ds e#e$ !+o%,+ !+ese may +a#e bee$ de"eed as alie$able a$d disposable. Alie$able a$d disposable la$ds o& !+e p%bli" domai$ may be a"H%ied by pi#a!e peso$s $o! by #i!%e o& pes"ip!io$ b%! !+o%,+ adverse possession %po$ "omplia$"e wi!+ !+e eH%ieme$!s o& Se"!io$ <03b6 o& CA 4<4. T+%s i! is $o! !+e mee lapse o& !ime !+a! #es!s !i!le o#e !+e la$d !o !+e "laima$!; i! is also $e"essay !+a! !+e la$d be a$ alie$able a$d disposable la$d o& !+e p%bli" domai$ a$d !+a! !+e "laima$! be i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ o& !+e la$d. Lis!ed dow$ !+e a"H%isi!io$ !+o%,+ ad#ese possessio$ o& p%bli" la$ds eH%ies !+e &ollowi$,: 4.
!+e la$d applied &o m%s! be a$ alie$able a$d disposable p%bli" la$d; a$d
*. !+e "laima$!s by !+emsel#es o !+o%,+ !+ei pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ o& !+e la$d si$"e %$e 4* 4'<5 o ealie.
9eirs of Spouses !rispulo errer and ?ngracia Puha@an, et al. vs. #ational Po@er !orporation, et al., ".R. #o. $-<%*, ;uly &, +$. Te$a$"y ela!io$s+ip. Te$a$"y ela!io$s+ip is a %idi"al !ie w+i"+ aises be!wee$ a la$dow$e a$d a !e$a$! o$"e !+ey a,ee e9pessly o impliedly !o %$de!a2e oi$!ly !+e "%l!i#a!io$ o& a la$d belo$,i$, !o !+e la$dow$e as a es%l! o& w+i"+ ela!io$s+ip !+e !e$a$! a"H%ies !+e i,+! !o "o$!i$%e wo2i$, o$ a$d "%l!i#a!i$, !+e la$d. T+e e9is!e$"e o& a !e$a$"y ela!io$s+ip "a$$o! be pes%med a$d alle,a!io$s !+a! o$e is a !e$a$! do $o! a%!oma!i"ally ,i#e ise !o se"%i!y o& !e$%e. Fo !e$a$"y ela!io$s+ip !o e9is! !+e &ollowi$, esse$!ial eH%isi!es m%s! be pese$!: 346 !+e pa!ies ae !+e la$dow$e a$d !+e !e$a$!; 3*6 !+e s%be"! ma!!e is a,i"%l!%al la$d; 3(6 !+ee is "o$se$! be!wee$ !+e pa!ies; 3<6 !+e p%pose is a,i"%l!%al pod%"!io$; 356 !+ee is peso$al "%l!i#a!io$ by !+e !e$a$!; a$d 36 !+ee is s+ai$, o& !+e +a#es!s be!wee$ !+e pa!ies. All !+e eH%isi!es m%s! "o$"% i$ ode !o es!ablis+ !+e e9is!e$"e o& !e$a$"y ela!io$s+ip a$d !+e abse$"e o& o$e o moe eH%isi!es is &a!al. 0icente Adriano vs. Alice /. anco, et al., ".R. #o. $'%$'*. ;uly &, +$. Sale; @o%ble Sales; =eed &o Good Fai!+ &o R%les !o Apply. See e$!y %$de Sale; I$$o"e$! >%"+ase &o al%e. Sale; I$$o"e$! >%"+ase &o al%e. I! is !+e "ommo$ de&e$se o& !+e espo$de$!Bp%"+ases !+a! !+ey ea"+ "+e"2ed !+e !i!le o& !+e s%be"! lo! w+e$ i! was +is !%$ !o a"H%ie !+e same a$d &o%$d i! "lea$ mea$i$, wi!+o%! a$$o!a!io$ o& a$y e$"%mba$"e o ad#ese !+id pa!y i$!ees!. A$d i! is %po$ !+is pos!%la!e !+a! ea"+ "laims !o be a$ i$$o"e$! p%"+ase &o #al%e o o$e w+o b%ys !+e pope!y o& a$o!+e wi!+o%! $o!i"e !+a! some o!+e peso$ +as a i,+! !o o i$!ees! i$ i! a$d w+o pays !+ee&o a &%ll a$d &ai pi"e a! !+e !ime o& !+e p%"+ase o be&oe e"ei#i$, s%"+ $o!i"e. T+e ,e$eal %le is !+a! o$e deali$, wi!+ a pa"el o& la$d e,is!eed %$de !+e Toe$s Sys!em may sa&ely ely o$ !+e "oe"!$ess o& !+e "e!i&i"a!e o& !i!le iss%ed !+ee&o a$d is $o! obli,ed !o ,o beyo$d !+e "e!i&i"a!e. W+ee i$ o!+e wods !+e "e!i&i"a!e o& !i!le is i$ !+e $ame o& !+e selle !+e i$$o"e$! p%"+ase &o #al%e +as !+e i,+! !o ely o$ w+a! appeas o$ !+e "e!i&i"a!e as +e is "+a,ed wi!+ $o!i"e o$ly o& b%de$s o "laims o$ !+e res as $o!ed i$ !+e "e!i&i"a!e. A$o!+e &om%la!io$ o& !+e %le is !+a! 3a6 i$ !+e abse$"e o& a$y!+i$, !o ao%se s%spi"io$ o 3b6 e9"ep! w+ee !+e pa!y +as a"!%al 2$owled,e o& &a"!s a$d "i"%ms!a$"es !+a! wo%ld impel a easo$ably "a%!io%s ma$ !o ma2e s%"+ i$H%iy o 3"6 w+e$ !+e p%"+ase +as 2$owled,e o& a de&e"! o& !i!le i$ +is #e$do o o& s%&&i"ie$! &a"!s !o i$d%"e a easo$ably p%de$! ma$ !o i$H%ie i$!o !+e s!a!%s o& !+e !i!le o& !+e pope!y said p%"+ase is wi!+o%! obli,a!io$ !o loo2 beyo$d !+e "e!i&i"a!e a$d i$#es!i,a!e !+e !i!le o& !+e selle.
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asi" is !+e %le !+a! a b%ye o& a pie"e o& la$d w+i"+ is i$ !+e a"!%al possessio$ o& peso$s o!+e !+a$ !+e selle m%s! be way a$d s+o%ld i$#es!i,a!e !+e i,+!s o& !+ose i$ possessio$. O!+ewise wi!+o%! s%"+ i$H%iy !+e b%ye "a$ +adly be e,aded as a b%ye i$ ,ood &ai!+. W+e$ a ma$ poposes !o b%y o deal wi!+ eal!y +is d%!y is !o ead !+e p%bli" ma$%s"ip! i.e. !o loo2 a$d see w+o is !+ee %po$ i! a$d w+a! +is i,+!s ae. A wa$! o& "a%!io$ a$d dili,e$"e w+i"+ a$ +o$es! ma$ o& odi$ay p%de$"e is a""%s!omed !o e9e"ise i$ ma2i$, p%"+ases is i$ "o$!empla!io$ o& law a wa$! o& ,ood &ai!+. T+e b%ye w+o +as &ailed !o 2$ow o dis"o#e !+a! !+e la$d sold !o +im is i$ ad#ese possessio$ o& a$o!+e is a b%ye i$ bad &ai!+. W+ee !+e la$d sold is i$ !+e possessio$ o& a peso$ o!+e !+a$ !+e #e$do !+e p%"+ase m%s! ,o beyo$d !+e "e!i&i"a!es o& !i!le a$d ma2e i$H%iies "o$"e$i$, !+e i,+!s o& !+e a"!%al possesso.A$d w+ee as i$ !+e i$s!a$! "ase Gabiel . a$d !+e s%bseH%e$! #e$dos wee $o! i$ possessio$ o& !+e pope!y !+e pospe"!i#e #e$dees ae obli,ed !o i$#es!i,a!e !+e i,+!s o& !+e o$e i$ possessio$. E#ide$!ly e$ad Ma"os a$d e$ami$ a$d Ed%ado did $o! i$#es!i,a!e !+e i,+!s o#e !+e s%be"! lo! o& !+e pe!i!io$es w+o d%i$, peiod ma!eial !o !+is "ase wee i$ a"!%al possessio$ e$ad e! al. ae !+%s $o! p%"+ases i$ ,ood &ai!+ a$d!+e as s%"+ "a$$o! be a""oded !+e po!e"!io$ e9!e$ded by !+e !+eeo&. law !o s%"+ p%"+ases. Moeo#e $o! bei$, p%"+ases i$ ,ood &ai!+ !+ei +a#i$, e,is!eed !+e sale will $o! as a,ai$s! !+e pe!i!io$es "ay !+e day &o a$y o& !+em %$de A!. 45<< o& !+e Ci#il Code pes"ibi$, %les o$ pe&ee$"e i$ "ase o& do%ble sales o& immo#able pope!y. 3cceKa v. ?sponilla laid dow$ !+e &ollowi$, %les i$ !+e appli"a!io$ o& A!. 45<<: 346 2$owled,e by !+e &is! b%ye o& !+e se"o$d sale "a$$o! de&ea! !+e &is! b%ye?s i,+!s e9"ep! w+e$ !+e se"o$d b%ye &is! e,is!e i$ ,ood &ai!+ !+e se"o$d sale; a$d 3*6 2$owled,e ,ai$ed by !+e se"o$d b%ye o& !+e &is! sale de&ea!s +is i,+!s e#e$ i& +e is &is! !o e,is!e si$"e s%"+ 2$owled,e !ai$!s +is e,is!a!io$ wi!+ bad &ai!+. Anthony 3rduKa, et al. vs. ?duardo ;. uente)ella, et al., ".R. #o. $2'%*$, ;une +-, +$. >%bli" La$d A"!; #iola!io$ o& &i#eByea po+ibi!oy peiod. >e!i!io$es e9e"%!ed a do"%me$! "alled a @eed o& Co$&ima!io$ a$d %i!"laim i$ &a#o o& a "e!ai$ i"e$!e La-o w+eeby pe!i!io$es a,eed !o /sell "ede "o$#ey ,a$! a$d !a$s&e by way o& UITCLAIM7 a pa"el o& la$d "o#eed by a$ oi,i$al "e!i&i"a!e o& !i!le. T+e OCT +ad bee$ iss%ed p%s%a$! !o a +omes!ead pa!e$!. La-o !+e$ sold !+e pope!y !o !+e espo$de$!. T+e la!!e la!e &iled a$ a"!io$ &o ow$es+ip H%ie!i$, o& !i!le pa!i!io$ a$d dama,es a,ai$s! pe!i!io$es payi$, !+a! +e be de"laed as !+e !%e ow$e o& !+e pope!y. I$ a$swe pe!i!io$es s!a!ed !+a! !+ey +ad $o! eli$H%is+ed ow$es+ip o possessio$ o& !+e la$d !o La-o. W+ile admi!!i$, !+a! !+ey e9e"%!ed !+e @eed o& Co$&ima!io$ a$d %i!"laim i$ &a#o o& La-o pe!i!io$es "laimed !+a! !+ey wee misled i$!o si,$i$, !+e same wi!+ La-o !a2i$, ad#a$!a,e o& !+ei la"2 o& ed%"a!io$.Wi!+o%! ,oi$, i$!o pe!i!io$es? alle,a!io$ !+a! !+ey wee %$awae o& !+e "o$!e$!s o& !+e @eed o& Co$&ima!io$ a$d %i!"laim we $o$e!+eless +old !+a! !+e deed is #oid &o #iola!i$, !+e &i#eByea po+ibi!oy peiod a,ai$s! alie$a!io$ o& la$ds a"H%ied !+o%,+ +omes!ead pa!e$! as po#ided %$de Se"!io$ 440 o& !+e >%bli" La$d A"!. I! beas s!essi$, !+a! !+e law was e$a"!ed !o ,i#e !+e +omes!eade o pa!e$!ee e#ey "+a$"e !o pese#e &o +imsel& a$d +is &amily !+e la$d !+a! !+e S!a!e +ad ,a!%i!o%sly ,i#e$ !o +im as a ewad &o +is labo i$ "lea$i$, a$d "%l!i#a!i$, i!. I!s basi" obe"!i#e as !+e Co%! +ad o""asio$ !o s!ess is !o pomo!e p%bli" poli"y !+a! is !o po#ide +ome a$d de"e$! li#i$, &o des!i!%!es aimed a! po#idi$, a "lass o& i$depe$de$! small la$d+oldes w+i"+ is !+e b%lwa2 o& pea"e a$d ode. 8e$"e a$y a"! w+i"+ wo%ld +a#e !+e e&&e"! o& emo#i$, !+e pope!y s%be"! o& !+e pa!e$! &om !+e +a$ds o& a ,a$!ee will be s!%"2 dow$ &o bei$, #iola!i#e o& !+e law. To epea! !+e "o$#eya$"e o& a +omes!ead be&oe !+e e9pia!io$ o& !+e &i#eByea po+ibi!oy peiod &ollowi$, !+e iss%a$"e o& !+e +omes!ead pa!e$! is $%ll a$d #oid a$d "a$$o! be e$&o"ed &o i! is $o! wi!+i$ !+e "ompe!e$"e o& a$y "i!i-e$ !o ba!e away w+a! p%bli" poli"y by law see2s !o pese#e. T+ee is !+ee&oe $o do%b! !+a! !+e @eed o& Co$&ima!io$ a$d %i!"laim w+i"+ was e9e"%!ed !+ee yeas a&!e !+e +omes!ead pa!e$! was iss%ed is #oid a$d "a$$o! be e$&o"ed. ;ulio lores, et al. vs. /arciano Bagaoisan, ".R. #o. $2<<'&, April $&, +$. >%bli" La$d A"!; &oes! la$d. Foes! la$ds ae $o! e,is!able %$de CA 4<4. DE#e$ moe impo!a$! Se"!io$ <0Db o& CA =o. 4<4 as ame$ded applies e9"l%si#ely !o p%bli" a,i"%l!%al la$d. Foes! la$ds o aea "o#eed wi!+ &oes! ae e9"l%ded. I! is wellBse!!led !+a! &oes! la$d is i$"apable o& e,is!a!io$; a$d i!s i$"l%sio$ i$ a !i!le w+e!+e s%"+ !i!le be o$e iss%ed %si$, !+e Spa$is+ so#eei,$!y o %$de !+e pese$! Toe$s sys!em o& e,is!a!io$ $%lli&ies !+e !i!le. 8owe#e i! is !%e !+a! &oes! la$ds may be e,is!eed w+e$ !+ey +a#e bee$ e"lassi&ied as alie$able by !+e >eside$! i$ a "lea a$d "a!e,oi"al ma$$e 3%po$ !+e e"omme$da!io$ o& !+e pope depa!me$! +ead w+o +as !+e a%!+oi!y !o "lassi&y !+e la$ds o& !+e p%bli" domai$ i$!o alie$able o disposable !imbe a$d mi$eal la$ds6 "o%pled wi!+ possessio$ by !+e "laima$! as well as !+a! o& +e pede"essosBi$B i$!ees!. U$&o!%$a!ely &o pe!i!io$e s+e was $o! able !o pod%"e s%"+ e#ide$"e. A""odi$,ly +e o""%pa!io$ !+eeo& a$d !+a! o& +e pede"essosBi$Bi$!ees! "o%ld $o! +a#e ipe$ed i$!o ow$es+ip o& !+e s%be"! la$d. T+is is be"a%se pio !o !+e "o$#esio$ o& &oes! la$d as alie$able la$d a$y o""%pa!io$ o possessio$ !+eeo& "a$$o! be "o%$!ed i$ e"2o$i$, "omplia$"e wi!+ !+e !+i!yByea possessio$ eH%ieme$! %$de Commo$weal!+ A"! 4<4 3CA 4<46 o !+e >%bli" La$d A"!. T+is was o% %li$, i$ Al(eda v. !A. T+e %les o$ !+e "o$&ima!io$ o& impe&e"! !i!les do $o! apply %$less a$d %$!il !+e la$d "lassi&ied as &oes! la$d is eleased !+o%,+ a$ o&&i"ial po"lama!io$ !o !+a! e&&e"!. T+e$ a$d o$ly !+e$ will i! &om pa! o& !+e disposable
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!+ee loa$s wee ob!ai$ed o$ sepaa!e da!es 1 K %ly 4'K' 5 %$e 4'04 a$d ( Sep!embe 4'04 o se#eal yeas be&oe !+e &ee pa!e$!s o$ !+e lo!s wee iss%ed by !+e ,o#e$me$! !o espo$de$! o$ *' @e"embe 4'0*. T+e RTC o& Ma$ila i$ a @e"isio$ da!ed *0 Apil 4'0( %led i$ &a#o o& pe!i!io$e odei$, !+e deb!os i$"l%di$, espo$de$! !o pay oi$!ly a$d se#eally "e!ai$ amo%$!s o& mo$ey. T+e p%bli" a%"!io$ "o$d%"!ed by !+e s+ei&& o$ !+e lo!s ow$ed by espo$de$! o""%ed o$ 4* O"!obe 4'0<. Fo a peiod o& &i#e yeas o &om *' @e"embe 4'0* %p !o *0 @e"embe 4'0K Se"!io$ 440 o& CA 4<4 po#ides !+a! !+e lo!s "ompisi$, !+e &ee pa!e$!s s+all $o! be made liable &o !+e payme$! o& a$y deb! %$!il !+e peiod o& &i#e yeas e9pies. I$ !+is "ase !+e e9e"%!io$ sale o& !+e lo!s o""%ed less !+a$ !wo yeas a&!e !+e da!e o& !+e iss%a$"e o& !+e pa!e$!s. T+is "lealy &alls wi!+i$ !+e &i#eByea po+ibi!io$ peiod po#ided i$ !+e law e,adless o& !+e da!es w+e$ !+e loa$s wee i$"%ed. /etropolitan Bank and rust !o(pany vs. ?dgardo . 0iray ".R. #o. $'++$%, e)ruary +&, +$. >ope!y e,is!a!io$; ealies! !i!le pe#ails. I$d%bi!ably i$ #iew o& !+e CA?s @e"isio$ i$ CABG.R. S> =o. <<*<( !+is "o$!o#esy +as bee$ ed%"ed !ois!+e sole as%bs!a$!i#e o& w+i"+ be!wee$ !+eae !wo !i!lesi$p%po!i$, !o "o#e !+ese!!led same pope!y dese#es pioi!y. T+is +adly $o#el iss%e.iss%e As pe!i!io$es !+emsel#es awae !+is %isdi"!io$ i! is !+a! !+e ,e$eal %le is !+a! i$ !+e "ase o& !wo "e!i&i"a!es o& !i!le p%po!i$, !o i$"l%de !+e same la$d !+e ealie i$ da!e pe#ails. I$ s%""essi#e e,is!a!io$s w+ee moe !+a$ o$e "e!i&i"a!e is iss%ed i$ espe"! o& a pa!i"%la es!a!e o i$!ees! i$ la$d !+e peso$ "laimi$, %$de !+e pio "e!i&i"a!e is e$!i!led !o !+e es!a!e o i$!ees!; a$d !+a! peso$ is deemed !o +old %$de !+e pio "e!i&i"a!e w+o is !+e +olde o& o w+ose "laim is dei#ed die"!ly o i$die"!ly &om !+e peso$ w+o was !+e +olde o& !+e ealies! "e!i&i"a!e iss%ed i$ espe"! !+eeo&. I$ egollacion v. Register of eeds of !avite we +eld !+a! /Dw+ee !wo "e!i&i"a!es o& !i!le p%po! !o i$"l%de !+e same la$d w+e!+e w+olly o pa!ly !+e be!!e appoa"+ is !o !a"e !+e oi,i$al "e!i&i"a!es &om w+i"+ !+e "e!i&i"a!es o& !i!le wee dei#ed.7 I$ all we &i$d !+a! !+e CA "ommi!!ed $o e#esible eo w+e$ i! applied !+e pi$"iple /Pri(us e(pore, Portior ;ure7 3Fis! i$ Time S!o$,e i$ Ri,+!6 i$ !+is "ase a$d &o%$d !+a! ALI?s !i!le was !+e #alid !i!le +a#i$, bee$ dei#ed &om !+e ealie OCT. Spouses /orris !arpo and Socorro !arpo vs. Ayala Land, Incorporated, ".R. #o. $''&22, e)ruary <, +$. >ope!y e,is!a!io$; poo& o& ow$es+ip; #al%e o& !a9 de"laa!io$. >ae$!+e!i"ally !+e Ca!aoas did $o! pese$! a$y !a9 de"laa!io$ "o#ei$, s%"+ #as! pie"e o& pope!y. Al!+o%,+ a !a9 de"laa!io$ is $o! a poo& o& ow$es+ip payme$! o& eal!y !a9 is a$ e9e"ise o& ow$es+ip o#e !+e pope!y a$d is !+e paye?s %$bo2e$ "+ai$ o& "laim o& ow$es+ip o#e i!. Repu)lic of the Philippines vs. Apolinario !atarroa, et al., ".R. #o. $2$22*, e)ruary $+, +$. Rep%bli" A"! =o. *; e"o$s!i!%!io$ o& !i!le; e#ide$"e !o be pese$!ed 1 T+e S%peme Co%! opi$ed !+a! !+e espo$de$!s +ad $o! pese$!ed ample e#ide$"e !o s%ppo! !+ei pe!i!io$ &o e"o$s!i!%!io$ o& !i!le. Se"!io$ * o& R.A. =o. * w+i"+ ,o#e$s !+e e"o$s!i!%!io$ o& los! o des!oyed Toe$s "e!i&i"a!es o& !i!le e$%mea!es spe"i&i" so%"es &o !+e e"o$s!i!%!io$ o& s%"+ !i!les. T+e e$%mea!io$ i$"l%des i$ i!s paa,ap+ 3&6 /a$y o!+e do"%me$! w+i"+ i$ !+e %d,me$! o& !+e "o%! is s%&&i"ie$! a$d pope basis &o e"o$s!i!%!i$, !+e los! o des!oyed "e!i&i"a!e o& !i!le.7 8owe#e !+e espo$de$!s wee o$ly able !o pese$! do"%me$!s !+a! ae $o! spe"i&ied i$ !+e s!a!%!e a,%i$, !+a! s%"+ do"%me$!s ae "o#eed by Se"!io$ *3&6. T+e "o%! +as applied !+e pi$"iple o& eusde( generis i$ i$!epe!i$, Se"!io$ *3&6 o& R.A. *. /A$y o!+e do"%me$!7 e&es !o eliable do"%me$!s o& !+e 2i$d des"ibed i$ !+e pe"edi$, e$%mea!io$s. T+e do"%me$!s s%bmi!!ed by !+e Ca!aoas do $o! &all i$ !+e same "lass as !+ose spe"i&i"ally e$%mea!ed i$ Se"!io$ *. =o$e o& !+em po#es !+a! a "e!i&i"a!e o& !i!le +ad i$ &a"! bee$ iss%ed i$ !+e $ame o& !+ei pae$!s. I$ Repu)lic v. uastu()an !+e "o%! %led !+a! !+e do"%me$!s m%s! "ome &om o&&i"ial so%"es w+i"+ e"o,$i-e !+e ow$es+ip o& !+e ow$e a$d +is pede"essosBi$Bi$!ees!. =o$e o& !+e do"%me$!s pese$!ed i$ !+is "ase &i! s%"+ des"ip!io$. F%!+emoe !+e Ca!aoas &ailed !o s+ow !+a! !+ey e9e!ed e&&o!s !o loo2 &o a$d a#ail o& !+e spe"i&i" so%"es e$%mea!ed i$ Se"!io$ * be&oe a#aili$, !+emsel#es o& !+e so%"es i$ Se"!io$ * 3&6. T+e "o%! said i$ Repu)lic v. 9ola5o !+a! !+e do"%me$!s e&eed !o i$ Se". *3&6 may be eso!ed !o o$ly i$ !+e abse$"e o& !+e pe"edi$, do"%me$!s i$ !+e lis!. O$ly i& !+e pe!i!io$e &o e"o$s!i!%!io$ &ails !o s+ow !+a! +e +ad i$ &a"! so%,+! !o se"%e s%"+ do"%me$!s a$d &ailed !o &i$d !+em "a$ !+e!+e pese$!a!io$ o& a$ !+eode /o!+e&o do"%me$!7 as e#ide$"e i$ s%bs!i!%!io$ be allowed. F%!+e $eeds 3b6 !o be s+ow$ be&oe iss%a$"e o& e"o$s!i!%!io$: 3a6 !+a! !+e "e!i&i"a!e o& !i!le +ad bee$!+e los!&ollowi$, o des!oyed; !+a! !+e do"%me$!s pese$!ed by pe!i!io$e ae s%&&i"ie$! a$d pope !o waa$! e"o$s!i!%!io$ o& !+e los! o des!oyed "e!i&i"a!e o& !i!le; 3"6 !+a! !+e pe!i!io$e is !+e e,is!eed ow$e o& !+e pope!y o +ad a$ i$!ees! !+eei$; 3d6 !+a! !+e "e!i&i"a!e o& !i!le was i$ &o"e a! !+e !ime i! was los! o des!oyed; a$d 3e6 !+a! !+e des"ip!io$ aea a$d bo%$daies o& !+e pope!y ae s%bs!a$!ially !+e same as !+ose "o$!ai$ed i$ !+e los! o des!oyed "e!i&i"a!e o& !i!le. =o$e o& !+e do"%me$!s pese$!ed s+owed !+ese pe"o$di!io$s. Repu)lic of the Philippines vs. Apolinario !atarroa, et al., ".R. #o. $2$22*, e)ruary $+, +$. >ope!y Re,is!a!io$ @e"ee; e,is!a!io$ o& !i!le; poo& !+a! la$d is alie$able a$d disposable. W+ile Caye!a$o &ailed !o s%bmi! a$y "e!i&i"a!io$ w+i"+ wo%ld &omally a!!es! !o !+e alie$able a$d disposable "+aa"!e o& !+e la$d applied &o !+e
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!+e ,o%$d !+a! !+ei espe"!i#e s+aes o& !+e lo! ae i$alie$able. T+ee bei$, $o s%bs!a$!i#e i,+!s w+i"+ s!a$d !o be pe%di"ed !+e be$e&i! o& !+e Ce!i&i"a!io$ may !+%s be eH%i!ably e9!e$ded i$ &a#o o& espo$de$!s. Repu)lic of the Philippines vs. !ayetano L. Serrano, and 9eirs of !atalino /. Alaan, represented )y Paulita P. Allaan, ".R. #o. $%<'<, e)ruary +*, +$. >ope!y Re,is!a!io$ @e"ee; e,is!a!io$ o& !i!le; eH%isi!es. T+e eH%isi!es &o !+e &ili$, o& a$ appli"a!io$ &o e,is!a!io$ o& !i!le %$de Se"!io$ 4<346 o& !+e Property Registration ecree ae: !+a! !+e pope!y is alie$able a$d disposable la$d o& !+e p%bli" domai$; !+a! !+e appli"a$!s by !+emsel#es o !+o%,+ !+ei pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ !+eeo&; a$d !+a! s%"+ possessio$ is %$de a )ona fide "laim o& ow$es+ip si$"e %$e 4* 4'<5 o ealie. : Repu)lic of the Philippines vs. !ayetano L. Serrano, and 9eirs of !atalino /. Alaan, represented )y Paulita P. Allaan, ".R. #o. $%<'<, e)ruary +*, +$. >ope!y Re,is!a!io$ @e"ee; e,is!a!io$ o& !i!le; w+e!+e i$ "o$!i$%o%s possessio$. As !o w+e!+e espo$de$!s +ad ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ !+e Co%! +as pe#io%sly opi$ed !+a!: /!+e law spea2s o& possessio$ a$d o""%pa!io$ Ta2e$ !o,e!+e wi!+ !+e wods ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s !+e wod o""%pa!io$ se#es !o +i,+li,+! !+e &a"! !+a! &o a$ appli"a$! !o H%ali&y +is possessio$ m%s! $o! be a mee &i"!io$. A"!%al possessio$ o& a la$d "o$sis!s i$ !+e ma$i&es!a!io$ o& a"!s o& domi$io$ o#e i! o& s%"+ a $a!%e as a pa!y wo%ld $a!%ally e9e"ise o#e +is ow$ pope!y. Leo$ado "lealy es!ablis+ed !+e "+aa"!e o& !+e possessio$ o& Caye!a$o a$d +is pede"essosBi$Bi$!ees! o#e !+e lo!. T+%s +e de"laed !+a! !+e lo! was &is! ow$ed by La-ao RaQada w+o sold !+e same !o %lia$ Yd%l-%a i$ 4'4K w+o i$ !%$ sold i! !o +is a$d Caye!a$o?s &a!+e Simeo$ i$ 4'*(; !+a! Simeo$ b%il! a +o%se !+eeo$ a&!e i!s a"H%isi!io$ w+i"+ &a"! is b%!!essed by e$!ies i$ Ta9 @e"laa!io$ =o. 4050K i$ !+e $ame o& Simeo$ &o !+e yea 4'*< i$di"a!i$, !+e e9is!e$"e o& a <)BsH. me!e eside$!ial s!%"!%e made o& nipa a$d mi9ed ma!eials a$d o& "o"o$%! !ees pla$!ed !+eeo$; a$d !+a! a&!e Simeo$?s demise i$ 4'(4 Caye!a$o b%il! +is ow$ +o%se beside !+e old nipa +o%se be&oe !+e wa a$d a )odega a&!e !+e wa w+i"+ "laims &i$d s%ppo! i$ Ta9 @e"laa!io$s made i$ 4'<0B4'50. W+e$ pessed d%i$, !+e eH%es! &o wi!!e$ i$!eo,a!oies i& Leo$ado +ad a$y o!+e peBwa !a9 de"laa!io$s aside &om Ta9 @e"laa!io$ =o. 4050K +e e9plai$ed !+a! all a#ailable e"ods may +a#e bee$ des!oyed o los! d%i$, !+e las! wa b%! !+a! a&!e !+e wa !+e lo! was eassessed i$ +is &a!+e?s $ame. T+e Co%! &i$ds Leo$ado?s e9pla$a!io$ pla%sible a$d !+ee is $o!+i$, i$ !+e e"ods !+a! de!a"!s &om i!s poba!i#e #al%e. Fi$ally !+e o&&i"ial e"eip!s o& eal!y !a9 payme$!s eli,io%sly made by Caye!a$o &om 4'<0 !o 4''K &%!+e se#e as "edible i$di"ia !+a! Caye!a$o a&!e +is &a!+e?s dea!+ i$ 4'(4 "o$!i$%ed !o e9e"ise a"!s o& domi$io$ o#e !+e lo!. T+e !o!ali!y o& !+e e#ide$"e !+%s poi$!s !o !+e %$bo2e$ "+ai$ o& a"!s e9e"ised by Caye!a$o !o demo$s!a!e +is o""%pa!io$ a$d possessio$ o& !+e la$d i$ !+e "o$"ep! o& ow$e !o !+e e9"l%sio$ o& all o!+es. Repu)lic of the Philippines vs. !ayetano L. Serrano, and 9eirs of !atalino /. Alaan, represented )y Paulita P. Allaan, ".R. #o. $%<'<, e)ruary +*, +$. La$d e,is!a!io$; possessio$. I$ @ie"!o La$d Ma$a,eme$! %ea% #. Co%! o& Appeals we e9plai$ed !+a! 1 /9 9 9 T+e p+ase /ad#ese "o$!i$%o%s ope$ p%bli" pea"e&%l a$d i$ "o$"ep! o& ow$e7 by w+i"+ "+aa"!eis!i"s pi#a!e espo$de$! des"ibes +is possessio$ a$d !+a! o& +is pae$!s ae mee "o$"l%sio$s o& law eH%ii$, e#ide$!iay s%ppo! a$d s%bs!a$!ia!io$. T+e b%de$ o& poo& is o$ !+e pi#a!e espo$de$! as appli"a$! !o po#e by "lea posi!i#e a$d "o$#i$"i$, e#ide$"e !+a! !+e alle,ed possessio$ o& +is pae$!s was o& !+e $a!%e a$d d%a!io$ eH%ied by law. 8is bae alle,a!io$s wi!+o%! moe do $o! amo%$! !o pepo$dea$! e#ide$"e !+a! wo%ld s+i&! !+e b%de$ o& poo& !o !+e opposi!o.7 8ee we &i$d !+a! pe!i!io$e?s possessio$ o& !+e lo! +as $o! bee$ o& !+e "+aa"!e a$d le$,!+ o& !ime eH%ied by law ;osephine ee vs. Repu)lic of the Philippines, ".R. #o. $22<%*, ece()er %, +-. Re,is!eed la$d; b%ye i$ ,ood &ai!+. W+ile e#ey peso$ deali$, wi!+ e,is!eed la$d "a$ sa&ely ely o$ !+e "oe"!$ess o& !+e "e!i&i"a!e o& !i!le iss%ed !+ee&o a$d !+e law will i$ $o way obli,e +im !o ,o beyo$d !+e "e!i&i"a!e !o de!emi$e !+e "o$di!io$ o& !+e pope!y o$e will $o! be pemi!!ed !o be$e&i! &om !+is ,e$eal %le i& !+ee e9is! impo!a$! &a"!s w+i"+ "ea!e s%spi"io$ !o "all &o a$ i$#es!i,a!io$ o& !+e eal "o$di!io$ o& !+e la$d. O$e w+o delibea!ely i,$oes a si,$i&i"a$! &a"! w+i"+ wo%ld $a!%ally ,e$ea!e wai$ess is $o! a$ i$$o"e$! p%"+ase &o #al%e. 0icente #. Luna, ;r. vs. #ario !a)ales, 3scar Pa)alan, et al., ".R. #o. $2<&<<, ece()er $*, +-. Re,is!eed la$d; $o$Bow$e. T+e e,is!a!io$ o& a pope!y i$ o$e?s $ame w+e!+e by mis!a2e o &a%d !+e eal ow$e bei$, a$o!+e impesses %po$ !+e !i!le so a"H%ied !+e "+aa"!e o& a "o$s!%"!i#e !%s! &o !+e eal ow$e. T+e peso$ i$ w+ose $ame !+e la$d is e,is!eed +olds i! as a mee !%s!ee a$d !+e eal ow$e is e$!i!led !o &ile a$ a"!io$ &o e"o$#eya$"e o& !+e pope!y. T+e Toe$s sys!em does $o! po!e"! a %s%pe &om !+e !%e ow$e. 0icente #. Luna, ;r. vs. #ario !a)ales, 3scar Pa)alan, et al., ".R. #o. $2<&<<, ece()er $*, +-.
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!+ose w+o ae #i,ila$! a$d dili,e$! a$d $o! !+ose w+o sleep w+e$ !+e law eH%ies !+em !o a"!. Aleandro B. y and International Realty !orporation vs. Oueen1s Ro@ Su)division, Inc., et al., ".R. #o. $2<$&%, ece()er *, +-. Toe$s !i!le; e,is!a!io$ by $o$Bow$e. T+e &a"! !+a! pe!i!io$es wee able !o se"%e !i!les i$ !+ei $ames did $o! opea!e !o #es! %po$ !+em ow$es+ip o#e !+e s%be"! pope!ies. T+a! a"! +as $e#e bee$ e"o,$i-ed as a mode o& a"H%ii$, ow$es+ip. T+e Toe$s sys!em does $o! "ea!e o #es! !i!le. I! o$ly "o$&ims a$d e"ods !i!le aleady e9is!i$, a$d #es!ed. I! does $o! po!e"! a %s%pe &om !+e !%e ow$e. U$e"oded sale; e&&e"!. U$e"oded sales o& la$d bo%,+! %$de >eside$!ial @e"ee =o. 45*' o !+e >ope!y Re,is!a!io$ @e"ee 3>@ 45*'6 ae e&&e"!i#e be!wee$ a$d bi$di$, o$ly %po$ !+e immedia!e pa!ies. T+e e,is!a!io$ eH%ied i$ Se"!io$ 54 o& >@ 45*' is i$!e$ded !o po!e"! i$$o"e$! !+id peso$s !+a! is peso$s w+o wi!+o%! 2$owled,e o& !+e sale a$d i$ ,ood &ai!+ a"H%ie i,+!s !o !+e pope!y. ings Properties !orporation, Inc. vs. !anuto A. "alido, ".R. #o. $2+<. #ove()er +2, +>ope!y Re,is!a!io$ @e"ee; b%ye i$ ,ood &ai!+. E#ey b%ye o& a e,is!eed la$d w+o !a2es a "e!i&i"a!e o& !i!le &o #al%e a$d i$ ,ood &ai!+ s+all +old !+e same &ee o& all e$"%mba$"es e9"ep! !+ose $o!ed o$ said "e!i&i"a!e. I! +as bee$ +eld +owe#e !+a! /w+ee !+e pa!y +as 2$owled,e o& a pio e9is!i$, i$!ees! !+a! was %$e,is!eed a! !+e !ime +e a"H%ied a i,+! !o !+e same la$d +is 2$owled,e o& !+a! pio %$e,is!eed i$!ees! +as !+e e&&e"! o& e,is!a!io$ as !o +im.7 Good &ai!+ is a$ i$!a$,ible a$d abs!a"! H%ali!y wi!+ $o !e"+$i"al mea$i$, o s!a!%!oy de&i$i!io$; a$d i! e$"ompasses amo$, o!+e !+i$,s a$ +o$es! belie& !+e abse$"e o& mali"e a$d !+e abse$"e o& a desi,$ !o de&a%d o !o see2 a$ %$"o$s"io$able ad#a$!a,e. A$i$di#id%al?s peso$al ,ood &ai!+ is a "o$"ep! o& +is ow$ mi$d a$d !+ee&oe may $o! "o$"l%si#ely be de!emi$ed by +is po!es!a!io$s alo$e. I! implies +o$es!y o& i$!e$!io$ a$d &eedom &om 2$owled,e o& "i"%ms!a$"es w+i"+ o%,+! !o p%! !+e +olde %po$ i$H%iy. T+e esse$"e o& ,ood &ai!+ lies i$ a$ +o$es! belie& i$ !+e #alidi!y o& o$e?s i,+! i,$oa$"e o& a s%peio "laim a$d abse$"e o& i$!e$!io$ !o o#eea"+ a$o!+e. Applied !o possessio$ o$e is "o$sideed i$ ,ood &ai!+ i& +e is $o! awae !+a! !+ee e9is!s i$ +is !i!le o mode o& a"H%isi!io$ a$y &law w+i"+ i$#alida!es i!. Good &ai!+ is always pes%med a$d %po$ +im w+o alle,es bad &ai!+ o$ !+e pa! o& !+e possesso es!s !+e b%de$ o& poo&. 9eirs of the late ;oaquin Li(ense vs. Rita vda. e Ra(os, et al., ".R. #o. $&+<$-, 3cto)er +%, +-. >ope!y Re,is!a!io$ @e"ee; ema$"ipa!io$ pa!e$!. >e!i!io$es a,%e !+a! !+e Ema$"ipa!io$ >a!e$!s a$d Ta$s&e Ce!i&i"a!es o& Ti!le iss%ed !o !+em w+i"+ wee aleady e,is!eed wi!+ !+e Re,is!e o& @eeds +a#e aleady be"ome i$de&easible a$d "a$ $o lo$,e be "a$"elled. We do $o! ad+ee !o pe!i!io$es? #iew. T+is Co%! +as aleady %led !+a! !+e mee iss%a$"e o& a$ ema$"ipa!io$ pa!e$! does $o! p%! !+e ow$es+ip o& !+e a,aia$ e&om be$e&i"iay beyo$d a!!a"2 a$d s"%!i$y. Ema$"ipa!io$ pa!e$!s iss%ed !o a,aia$ e&om be$e&i"iaies may be "oe"!ed a$d "a$"elled &o #iola!io$s o& a,aia$ laws %les a$d e,%la!io$s. I$ &a"! @AR Admi$is!a!i#e Ode =o. )* seies o& 4''< w+i"+ was iss%ed i$ Ma"+ 4''< e$%mea!es !+e ,o%$ds &o "a$"ella!io$ o& e,is!eed Ema$"ipa!io$ >a!e$!s o Ce!i&i"a!es o& La$dow$es+ip Awad. Pedro /ago MdeceasedN, represented )y his spouse Soledad /ago, et al. vs. ;uana 6. Bar)in, ".R. #o. $2<-+<, 3cto)er $+, +-. >ope!y Re,is!a!io$ @e"ee; e,is!a!io$. I$ a$y "ase !+e Co%! &i$ds $o eo i$ !+e &i$di$,s o& bo!+ !+e RTC a$d !+e CA !+a! >= is i$deed a$ i$$o"e$! mo!,a,ee &o #al%e. W+e$ !+e lo!s wee mo!,a,ed !o >= by Lim !+e !i!les !+ee!o wee i$ !+e la!!e?s $ame a$d !+ey s+owed $ei!+e #i"e $o i$&imi!y. I$ a""ep!i$, !+e mo!,a,e >= was $o! eH%ied !o ma2e a$y &%!+e i$#es!i,a!io$ o& !+e !i!les !o !+e pope!ies bei$, ,i#e$ as se"%i!y a$d "o%ld ely e$!iely o$ w+a! was s!a!ed i$ !+e a&oesaid !i!le. T+e p%bli" i$!ees! i$ %p+oldi$, !+ei$de&easibili!y o& a "e!i&i"a!e o& !i!le as e#ide$"e o& !+e law&%l ow$es+ip o& !+e la$d o o& a$y e$"%mba$"e !+eeo$ po!e"!s a b%ye o mo!,a,ee w+o i$ ,ood &ai!+ elies %po$ w+a! appeas o$ !+e &a"e o& !+e "e!i&i"a!e o& !i!le. I! is se!!led !+a! e,is!a!io$ i$ !+e p%bli" e,is!y is $o!i"e !o !+e w+ole wold. E#ey "o$#eya$"e mo!,a,e lease lie$ a!!a"+me$! ode %d,me$! i$s!%me$! o e$!y a&&e"!i$, e,is!eed la$d s+all i& e,is!eed &iled o e$!eed i$ !+e O&&i"e o& !+e Re,is!e o& @eeds o& !+e po#i$"e o "i!y w+ee !+e la$d !o w+i"+ i! ela!es lies be "o$s!%"!i#e $o!i"e !o all peso$s &om !+e !ime o& s%"+ e,is!ei$, &ili$, o e$!ei$,. U$de !+e %le o& $o!i"e i! is pes%med !+a! !+e p%"+ase +as e9ami$ed e#ey i$s!%me$! o& e"od a&&e"!i$, !+e !i!le. S%"+ pes%mp!io$ may $o! be eb%!!ed. 8e is "+a,ed wi!+ $o!i"e o& e#ey &a"! s+ow$ by !+e e"od a$d is pes%med !o 2$ow e#ey &a"! s+ow$ by !+e e"od a$d !o 2$ow e#ey &a"! w+i"+ a$ e9ami$a!io$ o& !+e e"od wo%ld +a#e dis"losed. T+is pes%mp!io$ "a$$o! be o#e"ome by a$y "laim o& i$$o"e$"e o ,ood &ai!+. O!+ewise !+e
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was e,is!eed pe!i!io$e may $o! "laim la"2 o& 2$owled,e !+eeo& as a #alid de&e$se. T+e s%bseH%e$! sale o& !+e pope!y !o pe!i!io$e?s +%sba$d "a$$o! de&ea! !+e i,+!s o&>= as !+e mo!,a,ee a$d s%bseH%e$!ly !+e p%"+ase a! !+e a%"!io$ sale w+ose i,+!s wee dei#ed &om a pio mo!,a,e #alidly e,is!eed. ?ufe(ia vda. e Agatep vs. Ro)erta L. Rodrigue5, et al., ".R. #o. $2&*, 3cto)er +%, +-. >ope!y Re,is!a!io$ @e"ee; Toe$s !i!le. A !i!le o$"e e,is!eed "a$$o! be de&ea!ed e#e$ by ad#ese ope$ a$d $o!oio%s possessio$. T+e !i!le o$"e e,is!eed is $o!i"e !o !+e wold. All peso$s m%s! !a2e $o!i"e. =o o$e "a$ plead i,$oa$"e o& !+e e,is!a!io$. 8e$"e w+ile !+e >i"os? may +a#e bee$ i$ ope$ $o!oio%s a$d "o$!i$%o%s possessio$ o& !+e se"o$d lo! &om !+e !ime i! was p%"+ased i$ 4'KK %$!il !+e pese$! !ime s%"+ possessio$ $o ma!!e +ow lo$, "o%ld $o! ipe$ i$!o ow$es+ip as !+e se"o$d lo! is pa! o& e,is!eed la$d. E#e$ !+e >i"os admi! !+e i$de&easible $a!%e o& Toe$s !i!les; +owe#e !+ey a,%e !+a! si$"e !+e se"o$d lo! was &a%d%le$!ly i$"l%ded i$ !+e s%#ey a$d e,is!a!io$ o& Ca!ali$a?s la$d !+ey may s!ill H%es!io$ !+e !i!le p%s%a$! !o Se"!io$ 55 o& !+e La$d Re,is!a!io$ A"!. We $o!e !+a! !+e >i"os +a#e $o! s+ow$ a$y e#ide$"e !o s%ppo! !+ei "laim o& &a%d%le$! e,is!a!io$. Also !elli$, is !+e >i"os? i$a"!io$ !o "oe"! !+is alle,ed &a%d%le$! e,is!a!io$. As we obse#ed ealie OCT =o. 5'() was iss%ed i$ Ca!ali$a?s $ame a$d !a$s"ibed i$ !+e Re,is!a!io$ oo2 &o !+e >o#i$"e o&S%i,ao del S% o$ a$%ay 4( 4''. Si$"e !+e$ !+e >i"os +a#e $o! &iled a$y a"!io$ !o "oe"! !+e alle,ed &a%d%le$! i$"l%sio$ o& !+ei pope!y i$ !+e la$d e,is!eed i$ Ca!ali$a?s $ame. I$ &a"! !+e pese$! "ase aose &om !+e "omplai$! &iled by !+eSal"edos $o! !+e >i"os !o H%ie! !+ei !i!le o#e !+e se"o$d lo!. /ontano Pico and Rosita Pico vs. !atalina Adali(8Salcedo and 4r)ano Salcedo, ".R. #o. $&+', 3cto)er +, +-. >ope!y Re,is!a!io$ @e"ee; Toe$s !i!le. U$de !+e Toe$s sys!em e,is!a!io$ is !+e opea!i#e a"! w+i"+ ,i#es #alidi!y !o !+e !a$s&e o "ea!es a lie$ %po$ !+e la$d. F%!+e e$!e$"+ed i$ o% %isdi"!io$ is !+e do"!i$e !+a! e,is!a!io$ i$ a p%bli" e,is!y "ea!es "o$s!%"!i#e $o!i"e !o !+e w+ole wold. %! !+ee is $o!+i$, i$ A"! =o. <' as ame$ded by >.@. =o. 45*' !+a! imposes a peiod wi!+i$ w+i"+ !o e,is!e a$$o!a!io$s o& /"o$#eya$"e mo!,a,e lease lie$ a!!a"+me$! ode %d,me$! i$s!%me$! o e$!y a&&e"!i$, e,is!eed la$d.7 I& lie$s wee $o! so e,is!eed !+e$ i! /s+all opea!e o$ly as a "o$!a"! be!wee$ !+e pa!ies a$d as e#ide$"e o& a%!+oi!y !o !+e Re,is!y o& @eeds !o ma2e e,is!a!io$.7 I& e,is!eed i! /s+all be !+e opea!i#e a"! !o "o$#ey o a&&e"! !+e la$d i$so&a as !+id peso$s ae "o$"e$ed.7 T+e mee lapse o& !ime &om !+e e9e"%!io$ o& !+e mo!,a,e do"%me$! !o !+e mome$! o& i!s e,is!a!io$ does $o! a&&e"! !+e i,+!s o& a mo!,a,ee. F"G 9oldings, Inc. vs. #ational /ines and Allied orkers 4nion Locan $< M#A/A4N, Sheriffs Richard 9. Aprosta and Al)erto /uno5, all acting sheriffs, epart(ent of La)or and ?(ploy(ent, Region 0I, Bacolod istrict 3ffice, Bacolod !ity, ".R. #o. $'+<'. 3cto)er $', +La$d; alie$able a$d disposable. W+ile !+e s%be"! lo!s wee #ei&ied !o be alie$able o disposable la$ds si$"e Ma"+ 45 4'0* !+ee is $o s%&&i"ie$! poo& !+a! ope$ "o$!i$%o%s a$d ad#ese possessio$ o#e !+em by pe!i!io$e a$d +e pede"essosBi$B i$!ees! "omme$"ed o$ %$e 4* 4'<5 o ealie. >e!i!io$e?s appli"a!io$s "a$$o! !+%s be ,a$!ed. W+ile a pope!y "lassi&ied as alie$able a$d disposable p%bli" la$d may be "o$#e!ed i$!o pi#a!e pope!y by easo$ o& ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ o& a! leas! () yeas p%bli" domi$io$ la$ds be"ome pa!imo$ial pope!y $o! o$ly wi!+ a de"laa!io$ !+a! !+ese ae alie$able o disposable b%! also wi!+ a$ e9pess ,o#e$me$! ma$i&es!a!io$ !+a! !+e pope!y is aleady pa!imo$ial o $o lo$,e e!ai$ed &o p%bli" %se p%bli" se#i"e o !+e de#elopme$! o& $a!io$al weal!+. A$d o$ly w+e$be,i$ !+e pope!y domi$io$ !o %$. +as be"ome pa!imo$ial "a$ !+e pes"ip!i#e peiod &o !+e a"H%isi!io$ o& pope!y o& !+e p%bli" W+ile !+e s%be"! lo!s wee de"laed alie$able o disposable o$ Ma"+ 45 4'0* !+ee is $o "ompe!e$! e#ide$"e !+a! !+ey ae $o lo$,e i$!e$ded &o p%bli" %se o &o p%bli" se#i"e. T+e "lassi&i"a!io$ o& !+e lo!s as alie$able a$d disposable la$ds o& !+e p%bli" domai$ does $o! "+a$,e i!s s!a!%s as pope!ies o& !+e p%bli" domi$io$. >e!i!io$e "a$$o! !+%s a"H%ie !i!le !o !+em by pes"ip!io$ as ye!. ;oyce =. Li(, represented )y her attorney8in8fact Bernardo /. #icolas7;oyce =. Li(, represented )y her attorney8in8fact Bernardo /. #icolas, ".R. #o. $&%'<7".R. #o. $'+*2, Septe()er *, +-. La$d; e,is!a!io$. A$y peso$ by +imsel& o !+o%,+ +is pede"essoBi$Bi$!ees! w+o +as bee$ i$ ope$ "o$!i$%o%s
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possessio$ a$d o""%pa!io$ o& !+e s%be"! la$d %$de a bo$a &ide "laim o& ow$es+ip &om %$e 4* 4'<5 o ealie. T+ese !+e pe!i!io$e m%s! po#e by $o less !+a$ "lea posi!i#e a$d "o$#i$"i$, e#ide$"e. Peregina /istica vs. Repu)lic of the Philippines, ".R. #o. $'&$*$, Septe()er $$, +-. La$d; e,is!a!io$. T+e >ope!y Re,is!a!io$ @e"ee i$#ol#es oi,i$al e,is!a!io$ !+o%,+ odi$ay e,is!a!io$ po"eedi$,s. U$de Se"!io$ 4< 346 o& said law !+e eH%isi!es &o !+e &ili$, o& a$ appli"a!io$ &o e,is!a!io$ o& !i!le ae: !+a! !+e pope!y i$ H%es!io$ is alie$able a$d disposable la$d o& !+e p%bli" domai$; !+a! !+e appli"a$!s by !+emsel#es o !+o%,+ !+ei pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$; a$d !+a! s%"+ possessio$ is %$de a bo$a &ide "laim o& ow$es+ip si$"e %$e 4* 4'<5 o ealie. ;oyce =. Li(, represented )y her attorney8in8fact Bernardo /. #icolas7;oyce =. Li(, represented )y her attorney8in8fact Bernardo /. #icolas, ".R. #o. $&%'<7".R. #o. $'+*2, Septe()er *, +-. Sale; $o$Be,is!a!io$. T+e elia$"e o& !+e @adi-o$s o$ !+e %$$o!ai-ed a$d %$e,is!eed deed o& absol%!e sale o& eal pope!y e9e"%!ed by e$adas i$ !+ei &a#o was mispla"ed a$d %$waa$!ed &o !+e $o$Be,is!a!io$ o& !+e deed mea$! !+a! !+e sale "o%ld $o! bi$d !+id pa!ies li2e !+e espo$de$!s. T+e !a$sa"!io$ a&&e"!i$, %$e,is!eed la$ds "o#eed by a$ %$e"oded "o$!a"! i& le,al mi,+! be #alid a$d bi$di$, o$ !+e pa!ies !+emsel#es b%! $o! o$ !+id pa!ies. I$ !+e "ase o& !+id pa!ies i! was $e"essay &o !+e "o$!a"! !o be e,is!eed. e$adas? e9e"%!io$ o$ Ma"+ 4) 4'K o& !+e deed o& absol%!e sale o& eal pope!y i$ &a#o o& !+e @adi-o$s s!a$di$, alo$e did $o! s%&&i"e !o bi$d a$d "o$"l%de !+e Mo"oos. >%s%a$! !o Se". 44( >eside$!ial @e"ee =o. 45*' !+e e"odi$, o& !+e sale was $e"essay. esides !+e deed bei$, !+e %$ila!eal a"! o& e$adas did $o! ad#esely a&&e"! !+e Mo"oos w+o wee $o! +e pi#ies. O!+ewise s!a!ed !+e deed was es i$!e alios a"!a as &a as !+ey wee "o$"e$ed. =ei!+e wo%ld !+e a&&ida#i! o& adoi$i$, ow$es s%ppo! !+e @adi-o$s? "a%se "o$sidei$, !+a! s%"+ a&&ida#i! aside &om i!s bei$, sel&Bse#i$, a$d %$ila!eal +ad bee$ e9e"%!ed o$ly &o !+e p%pose o& &a"ili!a!i$, Feli"idad @adi-o$?s appli"a!io$ &o !+e low "os! +o%si$, loa$ &om !+e @e#elopme$! a$2 o& !+e >+ilippi$es. Sps. #estor and elicidad adi5on vs. 9on. !ourt of Appeals and Sps. o(inador and ?lsa /ocorro, ".R. #o. $&-$$', Septe()er <, +-. Toe$s !i!le; &a%d%le$! !i!le. I$so&a as a peso$ w+o &a%d%le$!ly ob!ai$ed a pope!y is "o$"e$ed !+e e,is!a!io$ o& !+e pope!y i$ said peso$?s $ame wo%ld $o! be s%&&i"ie$! !o #es! i$ +im o +e !+e !i!le !o !+e pope!y. A "e!i&i"a!e o& !i!le meely "o$&ims o e"ods !i!le aleady e9is!i$, a$d #es!ed. T+e i$de&easibili!y o& !+e Toe$s !i!le s+o%ld $o! be %sed as a mea$s !o pepe!a!e &a%d a,ai$s! !+e i,+!&%l ow$e o& eal pope!y. Good &ai!+ m%s! "o$"% wi!+ e,is!a!io$ be"a%se o!+ewise e,is!a!io$ wo%ld be a$ e9e"ise i$ &%!ili!y. A Toe$s !i!le does $o! &%$is+ a s+ield &o &a%d $o!wi!+s!a$di$, !+e lo$,Bs!a$di$, %le !+a! e,is!a!io$ is a "o$s!%"!i#e $o!i"e o& !i!le bi$di$, %po$ !+e w+ole wold. T+e le,al pi$"iple is !+a! i& !+e e,is!a!io$ o& !+e la$d is &a%d%le$! !+e peso$ i$ w+ose $ame !+e la$d is e,is!eed +olds i! as a mee !%s!ee. I! +as lo$, bee$ es!ablis+ed !+a! !+e sole emedy o& !+e la$dow$e w+ose pope!y +as bee$ wo$,&%lly o eo$eo%sly e,is!eed i$ a$o!+e?s $ame is !o bi$, a$ odi$ay a"!io$ i$ a$ odi$ay "o%! o& %s!i"e &o e"o$#eya$"e o i& !+e pope!y +as passed i$!o !+e +a$ds o& a$ i$$o"e$! p%"+ase &o #al%e &o dama,es. /I! is o$e !+i$, !o po!e"! a$ i$$o"e$! !+id pa!y; i! is e$!iely a di&&ee$! ma!!e a$d o$e de#oid o& %s!i&i"a!io$ i& de"ei! wo%ld be ewaded by allowi$, !+e pepe!a!o !o e$oy !+e &%i!s o& +is $e&aio%s deed.7 Re"o$#eya$"e is all abo%! !+e !a$s&e o& !+e pope!y i$ !+is "ase !+e !i!le !+ee!o w+i"+ +as bee$ wo$,&%lly o eo$eo%sly e,is!eed i$ a$o!+e peso$?s $ame !o i!s i,+!&%l a$d le,al ow$e o !o o$e wi!+ a be!!e i,+!. E#ide$!ly pe!i!io$es bei$, !+e i,+!&%l ow$es o& !+e s%be"! pope!y ae e$!i!led !o !+e e"o$#eya$"e o& !+e !i!le o#e !+e same. ?((a 0er Reyes and Ra(on Reyes vs. he Register of eeds of !avite, et al. ".R. #o. $''&$', Septe()er <, +-.
Fee pa!e$!. A Fee 34*6 >a!e$! may be o& iss%ed !+e appli"a$! is a $a!%alBbo$ "i!i-e$ o& !+e >+ilippi$es; is $o! ow$e+is o& moe !+a$ !wel#e +e"!aes la$d;w+ee +as "o$!i$%o%sly o""%pied a$d "%l!i#a!ed ei!+e by +imsel& o !+e !+o%,+ pede"essosBi$Bi$!ees! a !a"! o !a"!s o& a,i"%l!%al p%bli" la$d s%be"! !o disposi!io$ &o a! leas! () yeas pio !o !+e e&&e"!i#i!y o& Rep%bli" A"! =o. '<); a$d +as paid !+e eal !a9es !+eeo$ w+ile !+e same +as $o! bee$ o""%pied by a$y o!+e peso$. O$"e a pa!e$! is e,is!eed a$d !+e "oespo$di$, "e!i&i"a!e o& !i!le is iss%ed !+e la$d "o#eed !+eeby "eases !o be pa! o& p%bli" domai$ be"omes pi#a!e pope!y a$d !+e Toe$s Ti!le iss%ed p%s%a$! !o !+e pa!e$! be"omes i$de&easible %po$ !+e e9pia!io$ o& o$e yea &om !+e da!e o& s%"+ iss%a$"e. 8owe#e a !i!le ema$a!i$, &om a &ee pa!e$! w+i"+ was se"%ed !+o%,+ &a%d does $o! be"ome i$de&easible pe"isely be"a%se !+e pa!e$! &om w+e$"e !+e !i!le sp%$, is i!sel& #oid a$d o& $o
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Toe$s sys!em; "olla!eal a!!a"2 o$ !i!le. Re,is!a!io$ o& la$d %$de !+e Toe$s sys!em aside &om pe&e"!i$, !+e !i!le a$d e$dei$, i! i$de&easible a&!e !+e lapse o& !+e peiod allowed by law also e$des !+e !i!le imm%$e &om "olla!eal a!!a"2. A "olla!eal a!!a"2 !a$spies w+e$ i$ a$o!+e a"!io$ !o ob!ai$ a di&&ee$! elie& a$d as a$ i$"ide$! o& !+e pese$! a"!io$ a$ a!!a"2 is made a,ai$s! !+e %d,me$! ,a$!i$, !+e !i!le. T+is ma$$e o& a!!a"2 is !o be dis!i$,%is+ed &om a die"! a!!a"2 a,ai$s! a %d,me$! ,a$!i$, !+e !i!le !+o%,+ a$ a"!io$ w+ose mai$ obe"!i#e is !o a$$%l se! aside o e$oi$ !+e e$&o"eme$! o& s%"+ %d,me$! i& $o! ye! impleme$!ed o !o see2 e"o#ey i& !+e pope!y !i!led %$de !+e %d,me$! +ad bee$ disposed o&. To pemi! a "olla!eal a!!a"2 o$ espo$de$!sBplai$!i&&s? !i!le is !o wa!e dow$ !+e i$!e,i!y a$d ,%aa$!eed le,al i$de&easibili!y o& a Toe$s !i!le. T+e pe!i!io$esBde&e$da$!s? a!!a"2 o$ !+e #alidi!y o& espo$de$!sBplai$!i&&s? !i!le by "laimi$, !+a! &a%d a!!e$ded i!s a"H%isi!io$ is a "olla!eal a!!a"2 o$ !+e !i!le. I! is a$ a!!a"2 i$"ide$!al !o !+ei H%es! !o de&e$d !+ei possessio$ o& !+e pope!ies i$ a$ /a""io$ p%bli"ia$a7 $o! i$ a die"! a"!io$ w+ose mai$ obe"!i#e is !o imp%,$ !+e #alidi!y o& !+e %d,me$! ,a$!i$, !+e !i!le. T+is is !+e a!!a"2 !+a! possessio$ o& a Toe$s Ti!le spe"i&i"ally ,%ads a,ai$s!; +e$"e we "a$$o! e$!e!ai$ m%"+ less a""od "edi! !o !+e pe!i!io$esBde&e$da$!s? "laim o& &a%d !o imp%,$ !+e #alidi!y o& !+e espo$de$!sBplai$!i&&s? !i!le !o !+ei pope!y. rancisco /adrid and ?dgardo Bernardo vs. Spouses Bonifacio /apoy and elicidad /artine5 G.R. =o. 45)00K A%,%s! 4< *))'. Toe$s sys!em; e,is!a!io$ o& !i!le. Se"!io$ 4<346 o& !+e >ope!y Re,is!a!io$ @e"ee lays dow$ !+e &ollowi$, eH%isi!es &o e,is!a!io$ o& !i!le !+ee%$de: 346 !+a! !+e pope!y i$ H%es!io$ is alie$able a$d disposable la$d o& !+e p%bli" domai$; 3*6 !+a! !+e appli"a$!s by !+emsel#es o !+o%,+ !+ei pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$; a$d 3(6 !+a! s%"+ possessio$ is %$de a bo$a &ide "laim o& ow$es+ip si$"e 4* %$e 4'<5 o ealie. a#ie was able !o "omply wi!+ all !+ese eH%ieme$!s. To po#e !+a! !+e la$d s%be"! o& a$ appli"a!io$ &o e,is!a!io$ is alie$able a$ appli"a$! m%s! es!ablis+ !+e e9is!e$"e o& a posi!i#e a"! o& !+e ,o#e$me$! s%"+ as a peside$!ial po"lama!io$ o a$ e9e"%!i#e ode; a$ admi$is!a!i#e a"!io$; i$#es!i,a!io$ epo!s o& %ea% o& La$ds i$#es!i,a!os; a$d a le,isla!i#e a"! o s!a!%!e. Repu)lic of the Philippines vs. #eptuna ". ;avier, ".R. #o. $2--&, August $-, +-. Toe$s sys!em; Toe$s !i!le. I$d%bi!ably a "e!i&i"a!e o& !i!le se#es as e#ide$"e o& a$ i$de&easible a$d i$"o$!o#e!ible !i!le !o !+e pope!y i$ &a#o o& !+e peso$ w+ose $ame appeas !+eei$. T+e eal p%pose o& !+e Toe$s Sys!em o& la$d e,is!a!io$ is !o H%ie! !i!le !o la$d a$d p%! s!op &oe#e !o a$y H%es!io$ as !o !+e le,ali!y o& !+e !i!le. I! is !%e !+a! bo!+ !ial a$d appella!e "o%!s a"!%ally mai$!ai$ed !+e i$de&easibili!y o& !+e "e!i&i"a!e o& !i!le a$d desis!ed &om a$$%lli$, o modi&yi$, !+e same. %! by de"lai$, !+a! !+e pope!y is $o! lo"a!ed i$ A$!ipolo Ci!y !+e lo"a!io$ s!a!ed i$ !+e "e!i&i"a!e o& !i!le !+ey i$ e&&e"! modi&ied !+e same !o !+e pe%di"e o& !+e pe!i!io$e. Wose !+ey did so based o$ i$"omple!e i$&oma!io$. =o!ably i$ Odsi,%e #. Co%! o& Appeals !+is Co%! i$deed +eld !+a! a "e!i&i"a!e o& !i!le is "o$"l%si#e e#ide$"e $o! o$ly o& ow$es+ip b%! also !+e lo"a!io$ o& !+e pope!y. Pioneer Insurance and Surety !orporation vs. 9eirs of 0icente !oronado, et al., ".R. #o. $%<&2, August *, +-. Toe$s sys!em; Toe$s !i!le. As a ma!!e o& law a Toe$s Ce!i&i"a!e o& Ti!le is e#ide$"e o& i$de&easible !i!le o& pope!y i$ &a#o o& !+e peso$ i$ w+ose $ame !+e !i!le appeas. T+e !i!le +olde is e$!i!led !o all !+e a!!ib%!es o& ow$es+ip o& !+e pope!y i$"l%di$, possessio$ s%be"! o$ly !o limi!s imposed by law. I$ !+e pese$! "ase !+e espo$de$!sBplai$!i&&s ae i$disp%!ably !+e +oldes o& a "e!i&i"a!e o& !i!le a,ai$s! w+i"+ !+e pe!i!io$esBde&e$da$!s? "laim o& oal sale "a$$o! pe#ail. As e,is!eed !i!le+oldes !+ey ae e$!i!led !o possessio$ o& !+e pope!ies. rancisco /adrid and ?dgardo Bernardo vs. Spouses Bonifacio /apoy and elicidad /artine5 G.R. =o. 45)00K A%,%s! 4< *))'. >ope!y; ema$"ipa!io$ pa!e$!. As +olde o& a$ ema$"ipa!io$ pa!e$! Abad is bo%$d by !+e pos"ip!io$ a,ai$s! !a$s&es o& la$d awads !o !+id peso$s w+i"+ is po+ibi!ed by law. 8e$"e e#e$ i& Abad &o a "o$sidea!io$ +ad wai#ed +is i,+!s !o !+e pope!y w+e$ +e s%e$deed possessio$ !+eeo& !o pe!i!io$e s%"+ wai#e is $e#e!+eless i$e&&e"!i#e a$d #oid be"a%se i! amo%$!s !o a po+ibi!ed !a$s&e o& !+e la$d awad. As !+e Co%! +eld i$ Lapa$day A,i"%l!%al P @e#elopme$! Cop. #. Es!i!a !+e wai#e o& i,+!s a$d i$!ees!s o#e la$d+oldi$,s awaded by !+e ,o#e$me$! is i$#alid &o bei$, #iola!i#e o& a,aia$ e&om laws. A$d i$ Toes #. e$!%a !+e Co%! de"laed !+a! !+e obe"! o& a,aia$ e&om is !o #es! i$ !+e &ameBbe$e&i"iay !o !+e e9"l%sio$ o& o!+es !+e i,+!s !o possess "%l!i#a!e a$d e$oy !+e la$d+oldi$, &o +imsel&; +e$"e !o i$s%e +is "o$!i$%ed possessio$ a$d e$oyme$! !+eeo& +e is po+ibi!ed by law
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T+e Toe$s sys!em is $o! a mode o& a"H%ii$, !i!les !o la$ds; i! is meely a sys!em o& e,is!a!io$ o& !i!les !o la$ds. 8owe#e %s!i"e a$d eH%i!y dema$d !+a! !+e !i!le+olde s+o%ld $o! be made !o bea !+e %$&a#oable e&&e"! o& !+e mis!a2e o $e,li,e$"e o& !+e S!a!e?s a,e$!s i$ !+e abse$"e o& poo& o& +is "ompli"i!y i$ a &a%d o o& ma$i&es! dama,e !o !+id peso$s. T+e eal p%pose o& !+e Toe$s sys!em is !o H%ie! !i!le !o la$d a$d p%! a s!op &oe#e !o a$y H%es!io$ as !o !+e le,ali!y o& !+e !i!le e9"ep! "laims !+a! wee $o!ed i$ !+e "e!i&i"a!e a! !+e !ime o& !+e e,is!a!io$ o !+a! may aise s%bseH%e$! !+ee!o. O!+ewise !+e i$!e,i!y o& !+e Toe$s sys!em s+all &oe#e be s%llied by !+e i$ep!i!%de a$d i$e&&i"ie$"y o& la$d e,is!a!io$ o&&i"ials w+o ae odi$aily pes%med !o +a#e e,%laly pe&omed !+ei d%!ies. T+e ,e$eal %le !+a! !+e die"! es%l! o& a pe#io%s #oid "o$!a"! "a$$o! be #alid will $o! apply i$ !+is "ase as i! will die"!ly "o$!a#e$e !+e Toe$s sys!em o& e,is!a!io$. W+ee i$$o"e$! !+id peso$s elyi$, o$ !+e "oe"!$ess o& !+e "e!i&i"a!e o& !i!le !+%s iss%ed a"H%ie i,+!s o#e !+e pope!y !+is Co%! "a$$o! dise,ad s%"+ i,+!s a$d ode !+e "a$"ella!io$ o& !+e "e!i&i"a!e. T+e e&&e"! o& s%"+ o%!i,+! "a$"ella!io$ will be !o impai p%bli" "o$&ide$"e i$ !+e "e!i&i"a!e o& !i!le. T+e sa$"!i!y o& !+e Toe$s sys!em m%s! be pese#ed; o!+ewise e#eyo$e deali$, wi!+ !+e pope!y e,is!eed %$de !+e sys!em will +a#e !o i$H%ie i$ e#ey i$s!a$"e as !o w+e!+e !+e !i!le +ad bee$ e,%laly o ie,%laly iss%ed "o$!ay !o !+e e#ide$! p%pose o& !+e law. E#ey peso$ deali$, wi!+ !+e e,is!eed la$d may sa&ely ely o$ !+e "oe"!$ess o& !+e "e!i&i"a!e o& !i!le iss%ed !+ee&o a$d !+e law will i$ $o way obli,e +im !o ,o be+i$d !+e "e!i&i"a!e !o de!emi$e !+e "o$di!io$ o& !+e pope!y. Respo$de$!?s !a$s&e "e!i&i"a!e o& !i!le +a#i$, bee$ dei#ed &om !+e 8omes!ead >a!e$! w+i"+ was e,is!eed %$de !+e Toe$s sys!em o$ May *K 4' was !+%s #es!ed wi!+ !+e +abilime$!s o& i$de&easibili!y. Ra)aa Ranch and evelop(ent !orporation vs. AP Retire(ent and Separation Benefits Syste(, G.R. =o. 4KK404 %ly K *))'. La$d e,is!a!io$; &ee pa!e$!. As "lealy po#ided by Se". << o& !+e >%bli" La$d A"! !+e eH%ieme$!s &o !+e iss%a$"e o& a &ee pa!e$! i$"l%de amo$, o!+es !+a!: 346 !+e appli"a$! +as "o$!i$%o%sly o""%pied a$d "%l!i#a!ed ei!+e by +imsel& o !+o%,+ +is pede"essosBi$Bi$!ees! !+e !a"! o !a"!s o& a,i"%l!%al p%bli" la$ds; 3*6 +e s+all +a#e paid !+e eal es!a!e !a9 !+eeo$; a$d 3(6 !+e la$d +as $o! bee$ o""%pied by a$y peso$. Lynn /aagad and irector of Lands vs. ;uanito /aagad G.R. =o. 4K4K* %$e 5 *))'. La$d e,is!a!io$; &ee pa!e$!. >e!i!io$e Ly$$ Maa,ad "ommi!!ed &a%d a$d ,oss misepese$!a!io$ i$ +is &ee pa!e$! appli"a!io$. A"!%al o posi!i#e &a%d po"eeds &om a$ i$!e$!io$al de"ep!io$ pa"!i"ed by mea$s o& misepese$!a!io$ o& ma!eial &a"!s w+i"+ i$ !+is "ase was !+e "o$s"io%s misepese$!a!io$ by pe!i!io$e !+a! +e was a &%lly H%ali&ied appli"a$! possessi$, all !+e eH%ieme$!s po#ided by law. Moeo#e &ail%e a$d i$!e$!io$al omissio$ o& !+e pe!i!io$eBappli"a$! !o dis"lose !+e &a"! o& a"!%al p+ysi"al possessio$ by !+e espo$de$! "o$s!i!%!es a$ alle,a!io$ o& a"!%al &a%d. I! is li2ewise &a%d !o 2$owi$,ly omi! o "o$"eal a &a"! %po$ w+i"+ be$e&i! is ob!ai$ed !o !+e pe%di"e o& a !+id peso$. Lynn /aagad and irector of Lands vs. ;uanito /aagad G.R. =o. 4K4K* %$e 5 *))'. La$d e,is!a!io$; e,is!a!io$ o& !i!le. T+ee ae !+ee eH%isi!es &o !+e &ili$, o& a$ appli"a!io$ &o e,is!a!io$ o& !i!le %$de Se"!io$ 4<346 o& >@ 45*': 346 !+a! !+e pope!y i$ H%es!io$ is alie$able a$d disposable la$d o& !+e p%bli" domai$; 3*6 !+a! !+e appli"a$! by +imsel& o !+o%,+ +is pede"essosBi$Bi$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$; a$d 3(6 !+a! s%"+ possessio$ is %$de a bo$a &ide "laim o& ow$es+ip si$"e 4* %$e 4'<5 o ealie. T+e i,+! !o &ile !+e appli"a!io$ &o e,is!a!io$ dei#es &om a bo$a &ide "laim o& ow$es+ip ,oi$, ba"2 !o 4* %$e 4'<5 o ealie by easo$ o& !+e "laima$!?s ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ o& alie$able a$d disposable la$d o& !+e p%bli" domai$. I$ !+is "ase espo$de$! &ailed !o "omply wi!+ !+e peiod o& possessio$ a$d o""%pa!io$ o& !+e s%be"! pope!y as eH%ied by bo!+ >@ 45*' a$d CA 4<4. We a,ee wi!+ !+e Rep%bli" !+a! espo$de$!?s e#ide$"e was $o! e$o%,+ !o po#e !+a! +e possessio$ o& !+e s%be"! pope!y s!a!ed si$"e 4* %$e 4'<5 o ealie be"a%se espo$de$!?s ealies! e#ide$"e "a$ be !a"ed ba"2 !o a !a9 de"laa!io$ iss%ed i$ !+e $ame o& +e pede"essosBi$Bi$!ees! o$ly i$ !+e yea 4'<0. I$ #iew o& !+e la"2 o& s%&&i"ie$! s+owi$, !+a! espo$de$! a$d +e pede"essosBi$Bi$!ees! possessed !+e s%be"! pope!y %$de a bo$a &ide "laim o& ow$es+ip si$"e 4* %$e 4'<5 o ealie espo$de$!?s appli"a!io$ &o "o$&ima!io$ a$d e,is!a!io$ o& !+e s%be"! pope!y %$de >@ 45*' a$d CA 4<4 s+o%ld be de$ied. Repu)lic of the Philippines 0s. Ru)y Lee sai, G.R. =o. 4040< %$e ** *))'. La$d e,is!a!io$; e,is!a!io$ o& !i!le. I$ !+e "ase a! ba !+e appella!e "o%! ,a#e "ede$"e !o !+e "e!i&ied !%e "opy o& OCT =o. (0) as poo& o& ow$es+ip o& espo$de$!?s pede"esso. Ye! i! is eadily appae$! &om a "%soy eadi$, o& said "opy !+a! OCT =o. (0) was s%pposedly si,$ed $o! by !+e Se"e!ay o& A,i"%l!%e a$d =a!%al Reso%"es as ma$da!ed by law b%! by !+e Se"e!a o& A i"%l!%e a$d Comme"e. 8e$"e i! is lai$ !o see !+a! !o i#e OCT =o. (0) oba!i#e #al%e i$ "o%! wo%ld
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La$d e,is!a!io$; Toe$s sys!em. U$de !+e es!ablis+ed pi$"iples o& la$d e,is!a!io$ a peso$ deali$, wi!+ e,is!eed la$d may ,e$eally ely o$ !+e "oe"!$ess o& a "e!i&i"a!e o& !i!le a$d !+e law will i$ $o way obli,e +im !o ,o beyo$d i! !o de!emi$e !+e le,al s!a!%s o& !+e pope!y e9"ep! w+e$ !+e pa!y "o$"e$ed +as a"!%al 2$owled,e o& &a"!s a$d "i"%ms!a$"es !+a! wo%ld impel a easo$ably "a%!io%s ma$ !o ma2e s%"+ i$H%iy. Applyi$, !+is s!a$dad !o !+e &a"!s o& !+is "ase we %le !+a! espo$de$!s e9e"ised !+e eH%ied dili,e$"e i$ as"e!ai$i$, !+e le,al "o$di!io$ o& !+e !i!le !o !+e s%be"! pope!y as !o be "o$sideed i$$o"e$! p%"+ases &o #al%e a$d i$ ,ood &ai!+. /actan8!e)u International Airport Authority vs. Sps. ?dito and /erian irol and Sps. Aleandro and /irando #go G.R. =o. 4K45(5 %$e 5 *))'. La$d e,is!a!io$; Toe$s sys!em. WellBse!!led is !+e %le !+a! e,is!a!io$ o& i$s!%me$!s m%s! be do$e i$ !+e pope e,is!y i$ ode !o e&&e"! a$d bi$d !+e la$d. >io !o !+e >ope!y Re,is!a!io$ @e"ee o& 4'K0 A"! =o. <' 3o !+e La$d Re,is!a!io$ A"!6 ,o#e$ed !+e e"odi$, o& !a$sa"!io$s i$#ol#i$, e,is!eed la$d i.e. la$d wi!+ a Toe$s !i!le. O$ !+e o!+e +a$d A"! =o. ((<< as ame$ded po#ided &oA""odi$,ly !+e sys!em i&o&ae"odi$, o& !a$sa"!io$s %$e,is!eed ealb%! es!a!e wi!+o%! pe%di"e%$de !o a !+id pa!y wi!+ a be!!e i,+!. pa"el o& la$d "o#eed by ao#e Toe$s !i!le is sold !+e sale is e,is!eed A"! =o. ((<< a$d $o! %$de !+e La$d Re,is!a!io$ A"! !+e sale is $o! "o$sideed e,is!eed a$d !+e e,is!a!io$ o& !+e deed does $o! opea!e as "o$s!%"!i#e $o!i"e !o !+e w+ole wold. Co$seH%e$!ly !+e &a"! !+a! pe!i!io$e MCIAA was able !o e,is!e i!s @eed o& Absol%!e Sale %$de A"! =o. ((<< is o& $o mome$! as !+e pope!y s%be"! o& !+e sale is i$disp%!ably e,is!eed la$d. Se"!io$ 5) o& A"! =o. <' i$ &a"! "a!e,oi"ally s!a!es !+a! i! is !+e a"! o& e,is!a!io$ !+a! s+all opea!e !o "o$#ey a$d a&&e"! !+e la$d; abse$! a$y s%"+ e,is!a!io$ !+e i$s!%me$! e9e"%!ed by !+e pa!ies emai$s o$ly as a "o$!a"! be!wee$ !+em a$d as e#ide$"e o& a%!+oi!y !o !+e "le2 o e,is!e o& deeds !o ma2e e,is!a!io$. /actan8!e)u International Airport Authority vs. Sps. ?dito and /erian irol and Sps. Aleandro and /irando #go G.R. =o. 4K45(5 %$e 5 *))'. >ope!y; lis pe$de$s. A $o!i"e o& lis pendens is a$ a$$o%$"eme$! !o !+e w+ole wold !+a! a pa!i"%la eal pope!y is i$ li!i,a!io$ se#i$, as a wa$i$, !+a! o$e w+o a"H%ies a$ i$!ees! o#e said pope!y does so a! +is ow$ is2 o !+a! +e ,ambles o$ !+e es%l! o& !+e li!i,a!io$ o#e !+e said pope!y. T+e &ili$, o& a $o!i"e o& lis pendens charges all s!a$,es wi!+ a $o!i"e o& !+e pa!i"%la li!i,a!io$ e&eed !o !+eei$ a$d !+ee&oe a$y i,+! !+ey may !+eea&!e a"H%ie o$ !+e pope!y is s%be"! !o !+e e#e$!%ali!y o& !+e s%i!. S%"+ a$$o%$"eme$! is &o%$ded %po$ p%bli" poli"y a$d $e"essi!y !+e p%pose o& w+i"+ is !o 2eep !+e pope!ies i$ li!i,a!io$ wi!+i$ !+e powe o& !+e "o%! %$!il !+e li!i,a!io$ is !emi$a!ed a$d !o pe#e$! !+e de&ea! o& !+e %d,me$! o de"ee by s%bseH%e$! alie$a!io$. U$de Se"!io$ KK o& >eside$!ial @e"ee 3>[email protected] =o. 45*'a $o!i"e o& lis pendens s+all be deemed "a$"elled o$ly %po$ !+e e,is!a!io$ o& a "e!i&i"a!e o& !+e "le2 o& "o%! i$ w+i"+ !+e a"!io$ o po"eedi$, was pe$di$, s!a!i$, !+e ma$$e o& disposal !+eeo& i& !+ee was a &i$al %d,me$! i$ &a#o o& !+e de&e$da$! o !+e a"!io$ was disposed o& !emi$a!i$, &i$ally all i,+!s o& !+e plai$!i&& o#e !+e pope!y i$ li!i,a!io$. Isa)elita !unanan, !arolyn !unanan and !ar(encita . #e(oto vs. ;u(ping ;ap rading !orporation, represented )y Reu)en /. Protacio, G.R. =o. 4K(0(< Apil *< *))'. >ope!y; possessio$. I$ "o$$e"!io$ wi!+ Se"!io$ 4<346 o& !+e >ope!y Re,is!a!io$ @e"ee Se"!io$ <03b6 o& !+e >%bli" La$d A"! e"o,$i-es a$d "o$&ims !+a! /!+ose w+o by !+emsel#es o !+o%,+ !+ei pede"essos i$ i$!ees! +a#e bee$ i$ ope$ "o$!i$%o%s e9"l%si#e a$d $o!oio%s possessio$ a$d o""%pa!io$ o& alie$able a$d disposable la$ds o& !+e p%bli" domai$ %$de a bo$a &ide "laim o& a"H%isi!io$ o& ow$es+ip si$"e %$e 4* 4'<57 +a#e a"H%ied ow$es+ip o& a$d e,is!able !i!le !o s%"+ la$ds based o$ !+e le$,!+ a$d H%ali!y o& !+ei possessio$. 3a6
Si$"e Se"!io$ <03b6 meely eH%ies possessio$ si$"e 4* %$e 4'<5 a$d does $o! eH%ie !+a! !+e la$ds s+o%ld +a#e bee$
alie$able a$dasdisposable !+e e$!ie peiod possessio$s%be"! !+e possesso e$!i!led !o se"%e by %di"ial "o$&ima!io$ o& +is !i!le !+ee!o soo$ as i!d%i$, is de"laed alie$able a$do&disposable !o !+e is !ime&ame imposed Se"!io$ %bli" La$d A"!. 3b6 T+e i,+! !o e,is!e ,a$!ed %$de Se"!io$ <03b6 o& !+e >%bli" La$d A"! is &%!+e "o$&imed by Se"!io$ 4<346 o& !+e >ope!y Re,is!a!io$ @e"ee. 9eirs of /ala)anan vs. Repu)lic of the Philippines, G.R. =o. 4K''0K Apil *' *))'. Re"o$s!i!%!io$. T+e &ollowi$, m%s! be pese$! &o a$ ode &o e"o$s!i!%!io$ !o iss%e: 3a6 !+a! !+e "e!i&i"a!e o& !i!le +ad bee$ los! o des!oyed; 3b6 !+a! !+e do"%me$!s pese$!ed by pe!i!io$e ae s%&&i"ie$! a$d pope !o waa$! e"o$s!i!%!io$ o& !+e los! o des!oyed "e!i&i"a!e o& !i!le; 3"6 !+a! !+e pe!i!io$e is !+e e,is!eed ow$e o& !+e pope!y o +ad a$ i$!ees! !+eei$;
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"o$di!io$ o& !+e pope!y. W+ee !+ee is $o!+i$, i$ !+e "e!i&i"a!e o& !i!le !o i$di"a!e a$y "lo%d o #i"e i$ !+e ow$es+ip o& !+e pope!y o a$y e$"%mba$"e !+eeo$ !+e p%"+ase is $o! eH%ied !o e9ploe &%!+e !+a$ w+a! !+e Toe$s Ti!le %po$ i!s &a"e i$di"a!es i$ H%es! &o a$y +idde$ de&e"!s o i$"+oa!e i,+! !+a! may s%bseH%e$!ly de&ea! +is i,+! !+ee!o. T+is pi$"iple does $o! apply w+e$ !+e pa!y +as a"!%al 2$owled,e o& &a"!s a$d "i"%ms!a$"es !+a! wo%ld impel a easo$ably "a%!io%s ma$ !o ma2e s%"+ i$H%iy o w+e$ !+e p%"+ase +as 2$owled,e o& a de&e"! o !+e la"2 o& !i!le i$ +is #e$do o o& s%&&i"ie$! &a"!s !o i$d%"e a easo$ably p%de$! ma$ !o i$H%ie i$!o !+e s!a!%s o& !+e !i!le o& !+e pope!y i$ li!i,a!io$. O$e w+o &alls wi!+i$ !+e e9"ep!io$ "a$ $ei!+e be de$omi$a!ed a$ i$$o"e$! p%"+ase &o #al%e $o a p%"+ase i$ ,ood &ai!+. Spouses ;uanito R. 0illa(il etc. et al. 0s. La5aro !ru580illarosa, G.R. =o. 4KK40K Apil K *))'. Sale; Toe$s !i!le. A &o,ed o &a%d%le$! do"%me$! may be"ome !+e oo! o& a #alid !i!le i& !+e pope!y +as aleady bee$ !a$s&eed &om !+e $ame o& !+e ow$e !o !+a! o& !+e &o,e. T+is do"!i$e se#es !o emp+asi-e !+a! a peso$ w+o deals wi!+ e,is!eed pope!y i$ ,ood &ai!+ will a"H%ie ,ood !i!le &om a &o,e a$d be absol%!ely po!e"!ed by a Toe$s !i!le. 8a#i$, made !+e $e"essay i$H%iies a$d +a#i$, &o%$d !+e !i!le !o be a%!+e$!i" illaosa $eed $o! ,o beyo$d !+e "e!i&i"a!e o& !i!le. W+e$ deali$, wi!+ la$d !+a! is e,is!eed a$d !i!led as i$ !+is "ase b%yes ae $o! eH%ied by !+e law !o i$H%ie &%!+e !+a$ w+a! !+e Toe$s "e!i&i"a!e o& !i!le i$di"a!es o$ i!s &a"e. 8e e9ami$ed !+e !a$s&eo?s !i!le w+i"+ was !+e$ %$de !+e $ame o& Spo%ses Tole$!i$o. 8e did $o! +a#e !o s"%!i$i-e ea"+ a$d e#ey !i!le a$d pe#io%s ow$es o& !+e pope!y pe"edi$, Tole$!i$o. Spouses ;uanito R. 0illa(il etc. et al. 0s. La5aro !ru580illarosa, G.R. =o. 4KK40K Apil K *))'. Sale; Toe$s !i!le. I! is !%e !+a! o$e w+o deals wi!+ pope!y e,is!eed %$de !+e Toe$s sys!em $eed $o! ,o beyo$d !+e same b%! o$ly +as !o ely o$ !+e &a"e o& !+e !i!le. 8e is "+a,ed wi!+ $o!i"e o$ly o& s%"+ b%de$s a$d "laims as ae a$$o!a!ed o$ !+e !i!le. 8owe#e !+is pi$"iple does $o! apply w+e$ !+e pa!y +as a"!%al 2$owled,e o& &a"!s a$d "i"%ms!a$"es !+a! wo%ld impel a easo$ably "a%!io%s ma$ !o ma2e s%"+ i$H%iy o w+e$ !+e p%"+ase o mo!,a,ee +as 2$owled,e o& a de&e"! o !+e la"2 o& !i!le i$ +is #e$do o mo!,a,o o o& s%&&i"ie$! &a"!s !o i$d%"e a easo$ably p%de$! ma$ !o i$H%ie i$!o !+e s!a!%s o& !+e !i!le o& !+e pope!y i$ li!i,a!io$. O$e w+o &alls wi!+i$ !+e e9"ep!io$ "a$ $ei!+e be de$omi$a!ed a$ i$$o"e$! p%"+ase o mo!,a,ee &o #al%e $o a p%"+ase o mo!,a,ee i$ ,ood &ai!+. I$ !+e pese$! "ase !+e &a"! !+a! !+e odes dismissi$, !+e "ase a$d die"!i$, !+e "a$"ella!io$ o& !+e $o!i"e o& lis pendens was $o! ye! &i$al a$d e9e"%!oy s+o%ld +a#e impelled !+e C%$a$a$s !o be way o& &%!+e de#elopme$!s as i$ &a"! plai$!i&& &iled a mo!io$ &o e"o$sidea!io$ a$d !+e RTC ,a$!ed !+e same. I$ s+o! !+e C%$a$a$s? 2$owled,e o& !+e e9is!e$"e o& a pe$di$, li!i,a!io$ i$#ol#i$, !+e disp%!ed pope!y ma2es !+em mo!,a,ees i$ bad &ai!+. 8e$"e espo$de$! "o%ld s!ill e"o#e !+e pope!y &om !+e C%$a$a$s. Isa)elita !unanan, !arolyn !unanan and !ar(encita . #e(oto vs. ;u(ping ;ap rading !orporation, represented )y Reu)en /. Protacio, ".R. #o. $2<%<*, April +*, +-. >ope!y; a"H%isi!io$ by pes"ip!io$; "o$&ima!io$ o& i$"omple!e o impe&e"! !i!les; eH%ieme$!s. T+ee m%s! be a$ e9pess de"laa!io$ by !+e S!a!e !+a! !+e p%bli" domi$io$ pope!y is $o lo$,e i$!e$ded &o p%bli" se#i"e o !+e de#elopme$! o& !+e $a!io$al weal!+ o !+a! !+e pope!y +as bee$ "o$#e!ed i$!o pa!imo$ial. Wi!+o%! s%"+ e9pess de"laa!io$ !+e pope!y e#e$ i& "lassi&ied as alie$able o disposable emai$s pope!y o& !+e p%bli" domi$io$ p%s%a$! !o A!i"le <*)3*6 a$d !+%s i$"apable o& a"H%isi!io$ by pes"ip!io$. I! is o$ly w+e$ s%"+ alie$able a$d disposable la$ds ae e9pessly de"laed by !+e S!a!e !o be $o lo$,e i$!e$ded &o p%bli" se#i"e o &o !+e de#elopme$! o& !+e $a!io$al weal!+ !+a! !+e peiod o& a"H%isi!i#e pes"ip!io$ "a$ be,i$ !o %$. S%"+ de"laa!io$ s+all be i$ !+e &om o& a law d%ly e$a"!ed by Co$,ess o a >eside$!ial >o"lama!io$ i$ "ases w+ee !+e >eside$! is d%ly a%!+oi-ed by law. Fo o$e !o i$#o2e !+e po#isio$s o& Se"!io$ 4<3*6 a$d se! %p a"H%isi!i#e pes"ip!io$ a,ai$s! !+e S!a!e i! is pimodial !+a! !+e s!a!%s o& !+e pope!y as pa!imo$ial be &is! es!ablis+ed. F%!+emoe !+e peiod o& possessio$ pe"edi$, !+e "lassi&i"a!io$ o& !+e pope!y as pa!imo$ial "a$$o! be "o$sideed i$ de!emi$i$, !+e "omple!io$ o& !+e pes"ip!i#e peiod. Ad#ese "o$!i$%o%s ope$ p%bli" possessio$ i$ !+e "o$"ep! o& a$ ow$e is a "o$"l%sio$ o& law a$d !+e b%de$ !o po#e i! by "lea posi!i#e a$d "o$#i$"i$, e#ide$"e is o$ !+e appli"a$!. A "laim o& ow$es+ip will $o! pope o$ !+e basis o& !a9 de"laa!io$s i& %$a""ompa$ied by poo& o& a"!%al possessio$. T+e "o%$!i$, o& !+e !+i!y 3()6Byea pes"ip!i#e peiod &o p%poses o& a"H%ii$, ow$es+ip o& a p%bli" la$d %$de Se"!io$ 4<3*6 "a$ o$ly s!a! &om !+e iss%a$"e o& @ARCO Co$#esio$ Ode. e&oe !+e pope!y was de"laed pa!imo$ial by #i!%e o& s%"+ "o$#esio$ ode i! "a$$o! be a"H%ied by pes"ip!io$. ;ean an, et al. vs. Repu)lic of the Philippines; G.R. =o. 4'(<<( Apil 4 *)4*.
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>es"ip!io$; e#i#al o& %d,me$!. A$ a"!io$ &o e#i#al o& %d,me$! is ,o#e$ed by A!i"le 44<< 3(6 A!i"le 445* o& !+e Ci#il Code a$d Se"!io$ R%le (' o& !+e R%les o& Co%!. A!i"le 44<<3(6 po#ides:
Art. $$**. T+e &ollowi$, a"!io$s m%s! be bo%,+! %!&'!$ &"$ -"a#s &om !+e !ime !+e i,+! o& a"!io$ a""%es: 9999 3(6 Upo$ a %d,me$! w+ile A!i"le 445* o& !+e Ci#il Code s!a!es !+a! /DT +e peiod &o pes"ip!io$ o& a"!io$s !o dema$d !+e &%l&illme$! o& obli,a!io$s de"laed by a %d,me$! "omme$"es &om !+e !ime !+e %d,me$! be"ame &i$al. I$ !+is e,ad Se"!io$ R%le (' o& !+e R%les o& Co%! po#ides !+a! /DA &i$al a$d e9e"%!oy %d,me$! o ode may be e9e"%!ed o$ mo!io$ wi!+i$ &i#e 356 yeas &om !+e da!e o& i!s e$!y. A&!e !+e lapse o& s%"+ !ime a$d be&oe i! is baed by !+e s&a&,&" of l!+!&a&!o$s a %d,me$! may be e$&o"ed by a"!io$. T+e e#i#ed %d,me$! may also be e$&o"ed by mo!io$ wi!+i$ &i#e 356 yeas &om !+e da!e o& i!s e$!y a$d !+eea&!e by a"!io$ be&oe i! is baed by !+e s&a&,&" of l!+!&a&!o$s. 3emp+asis s%pplied67 T+e %les ae "lea. O$"e a %d,me$! be"omes &i$al a$d e9e"%!oy !+e pe#aili$, pa!y "a$ +a#e i! e9e"%!ed as a ma!!e o& i,+! by mee mo!io$ wi!+i$ &i#e yeas &om !+e da!e o& e$!y o& %d,me$!. I& !+e pe#aili$, pa!y &ails !o +a#e !+e de"isio$ e$&o"ed by a mo!io$ a&!e !+e lapse o& &i#e yeas !+e said %d,me$! is ed%"ed !o a i,+! o& a"!io$ w+i"+ m%s! be e$&o"ed by !+e i$s!i!%!io$ o& a "omplai$! i$ a e,%la "o%! wi!+i$ !e$ yeas &om !+e !ime !+e %d,me$! be"omes &i$al. >e!i!io$e ille-a +owe#e wa$!s !+is Co%! !o a,ee wi!+ +im !+a! !+e abeya$"e ,a$!ed !o +im by !+e lowe "o%! !olled !+e %$$i$, o& !+e pes"ip!i#e peiod. 8e e#e$ "i!ed "ases allowi$, e9"ep!io$s !o !+e ,e$eal %le. T+e "i!ed "ases ae i$ &a"! $o! appli"able !o +im. T+e e"ods e#eal !+a! i! was pe!i!io$e ille-a !+e pe#aili$, pa!y +imsel& w+o mo#ed !o de&e !+e e9e"%!io$ o& %d,me$!. T+e losi$, pa!y $e#e +ad a$y +a$d i$ !+e delay o& i!s e9e"%!io$. =ei!+e did !+e pa!ies +a#e a$y a,eeme$! o$ !+a! ma!!e. A&!e !+e lapse o& &i#e yeas &om !+e &i$ali!y o& %d,me$! pe!i!io$e ille-a s+o%ld +a#e i$s!ead &iled a "omplai$! &o i!s e#i#al i$ a""oda$"e wi!+ Se"!io$ R%le (' o& !+e R%les o& Co%!. 8e +owe#e &iled a mo!io$ !o e9e"%!e !+e same w+i"+ was a wo$, "o%se o& a"!io$. O$ !+e 44!+ yea +e &i$ally so%,+! i!s e#i#al b%! +e eH%es!ed !+e aid o& !+e "o%!s !oo la!e. T+e Co%! +as po$o%$"ed i$ a ple!+oa o& "ases !+a! i! is e#ol!i$, !o !+e "o$s"ie$"e !o allow someo$e !o &%!+e a#e! !+e sa!is&a"!io$ o& a$ obli,a!io$ be"a%se o& s+ee li!eal ad+ee$"e !o !e"+$i"ali!y; !+a! al!+o%,+ s!i"! "omplia$"e wi!+ !+e %les o& po"ed%e is desied libeal i$!epe!a!io$ is waa$!ed i$ "ases w+ee a s!i"! e$&o"eme$! o& !+e %les will $o! se#e !+e e$ds o& %s!i"e; a$d !+a! i! is a be!!e %le !+a! "o%!s %$de !+e pi$"iple o& eH%i!y will $o! be ,%ided o bo%$d s!i"!ly by !+e s!a!%!e o& limi!a!io$s o !+e do"!i$e o& la"+es w+e$ !o do so ma$i&es! wo$, o i$%s!i"e wo%ld es%l!. T+ese "ases !+o%,+ emai$ e9"ep!io$s !o !+e ,e$eal %le. T+e p%pose o& !+e law i$ pes"ibi$, !ime limi!a!io$s &o e$&o"i$, %d,me$! by a"!io$ is pe"isely !o pe#e$! !+e wi$$i$, pa!ies &om sleepi$, o$ !+ei i,+!s. T+e Co%! "a$$o! %s! se! aside !+e s!a!%!e o& limi!a!io$s i$!o obli#io$ e#ey !ime someo$e "ies &o eH%i!y a$d %s!i"e. I$deed /i& e!e$al #i,ila$"e is !+e pi"e o& sa&e!y o$e "a$$o! sleep o$ o$e?s i,+! &o moe !+a$ a 4)!+ o& a "e$!%y a$d e9pe"! i! !o be pese#ed i$ pis!i$e p%i!y.7 ?rnesto 0ille5a vs. "er(an /anage(ent and Services, Inc., et al., ".R. #o. $%+-<2, August %, +$. >es"ip!io$; dis"o#ey o& &a%d. >e!i!io$e &iled a$ a"!io$ &o dama,es o$ !+e ,o%$d o& &a%d "ommi!!ed a,ai$s! i! by espo$de$!s. U$de !+e po#isio$s o& A!i"le 44< o& !+e Ci#il Code a"!io$s %po$ a$ i$%y !o !+e i,+!s o& !+e plai$!i&& o %po$ a H%asiBdeli"! m%s! be i$s!i!%!ed wi!+i$ &o% yeas &om !+e !ime !+e "a%se o& a"!io$ a""%ed w+i"+ is w+e$ plai$!i&& dis"o#eed !+e alle,ed &a%d "ommi!!ed by espo$de$!s. 8owe#e !+e Co%! does $o! a,ee wi!+ !+e CA i$ i!s %li$, !+a! !+e dis"o#ey o& !+e &a%d s+o%ld be e"2o$ed &om !+e !ime o& e,is!a!io$ o& !+e !i!les "o#ei$, !+e s%be"! pope!ies. T+e Co%! $o!es !+a! w+a! +as bee$ ,i#e$ by espo$de$!s !o pe!i!io$e as e#ide$"e o& !+ei ow$es+ip o& !+e s%be"! pope!ies a! !+e !ime !+a! !+ey mo!,a,ed !+e same ae $o! "e!i&i"a!es o& !i!le b%! !a9 de"laa!io$s i$ !+e ,%ise !+a! !+e said pope!ies ae %$e,is!eed. O$ !+e basis o& !+e !a9 de"laa!io$s alo$e a$d by easo$ o& espo$de$!?s misepese$!a!io$s pe!i!io$e "o%ld $o! +a#e bee$ easo$ably e9pe"!ed !o a"H%ie 2$owled,e o& !+e &a"! !+a! !+e said pope!ies wee aleady !i!led. As a "o$seH%e$"e pe!i!io$e may $o! be "+a,ed wi!+ a$y 2$owled,e o& a$y s%bseH%e$! e$!y o& a$ e$"%mba$"e +i"+ ma +a#e bee$ a$$o!a!ed o$ !+e said !i!les m%"+ less a$ "+a$ e o& ow$es+i o& !+e o e!ies "o#eed !+eeb . As
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>es"ip!io$; peiod &o s%i!s based o$ wi!!e$ "o$!a"!. >e!i!io$e &iled +is "omplai$! e,adi$, !+e lessee?s bea"+ o& !+e lease "o$!a"!?s assi,$me$! #e!o "la%se $ealy ** yeas a&!e !+e assi,$me$! o& lease+old i,+!s a$d almos! si9 yeas a&!e pe!i!io$e bo%,+! !+e pope!y &om !+e lesso. T+e lapse o& moe !+a$ !wo de"ades lp%!s !+is "ase well wi!+i$ !+e !ei!oy o& !+e 4)Byea pes"ip!i#e ba !o s%i!s based %po$ a wi!!e$ "o$!a"! %$de A!i"le 44<< 346 o& !+e Ci#il Code. Ro(eo . /ariano vs. Petron !orporation, ".R. #o. $'-*<%, ;anuary +$, +$. >es"ip!io$; a"!io$ !o #oid &o,ed "o$!a"! does $o! pes"ibe. T+e s%pposed #e$do?s si,$a!%e +a#i$, bee$ po#ed !o be a &o,ey !+e i$s!%me$! is !o!ally #oid o i$e9is!e$! as /absol%!ely sim%la!ed o &i"!i!io%s7 %$de A!i"le 4<)' o& !+e Ci#il Code. A""odi$, !o A!i"le 4<4) /!+e a"!io$ o de&e$se &o !+e de"laa!io$ o& !+e i$e9is!e$"e o& a "o$!a"! does $o! pes"ibe7. T+e i$e9is!e$"e o& a "o$!a"! is pema$e$! a$d i$"%able w+i"+ "a$$o! be "%ed ei!+e by a!i&i"a!io$ o by pes"ip!io$. Spouses Patricio and /yrna Bernales vs. 9eirs of ;ulian Sa()aan, et al., ".R. #o. $'<+2$, ;anuary $&, +$.
VI. O?LI=ATIONS AND CONTRACTS Fo"e Mae%e. A!i"le 44K< o& !+e Ci#il Code po#ides: /E9"ep! i$ "ases e9pessly spe"i&ied by !+e law o w+e$ i! is o!+ewise de"laed by s!ip%la!io$ o w+e$ !+e $a!%e o& !+e obli,a!io$ eH%ies !+e ass%mp!io$ o& is2 $o peso$ s+all be espo$sible &o !+ose e#e$!s w+i"+ "o%ld $o! be &oesee$ o w+i"+ !+o%,+ &oesee$ wee i$e#i!able.7 A pe%sal o& !+e "o$s!%"!io$ a,eeme$!s s+ows !+a! !+e pa!ies $e#e a,eed !o ma2e LC@C liable e#e$ i$ "ases o& force (aeure. =ei!+e was !+e ass%mp!io$ o& is2 eH%ied. T+%s i$ !+e o""%e$"e o& e#e$!s !+a! "o%ld $o! be &oesee$ o !+o%,+ &oesee$ wee i$e#i!able $ei!+e pa!y s+o%ld be +eld espo$sible. U$de A!i"le 44K< o& !+e Ci#il Code !o e9emp! !+e obli,o &om liabili!y &o a bea"+ o& a$ obli,a!io$ d%e !o a$ /a"! o& God7 o force (aeure !+e &ollowi$, m%s! "o$"%: 3a6 !+e "a%se o& !+e bea"+ o& !+e obli,a!io$ m%s! be i$depe$de$! o& !+e will o& !+e deb!o; 3b6 !+e e#e$! m%s! be ei!+e %$&oseeable o %$a#oidable; 3"6 !+e e#e$! m%s! be s%"+ as !o e$de i! impossible &o !+e deb!o !o &%l&ill +is obli,a!io$ i$ a $omal ma$$e; a$d 3d6 !+e deb!o m%s! be &ee &om a$y pa!i"ipa!io$ i$ o a,,a#a!io$ o& !+e i$%y !o !+e "edi!o. T+e s+o!a,e i$ s%pplies a$d "eme$! may be "+aa"!ei-ed as force (aeure. I$ !+e pese$! "ase +adwae s!oes did $o! +a#e e$o%,+ "eme$! a#ailable i$ !+ei s%pplies o s!o"2s a! !+e !ime o& !+e "o$s!%"!io$ i$ !+e 4'')s. Li2ewise !yp+oo$s powe &ail%es a$d i$!e%p!io$s o& wa!e s%pply all "lealy &all %$de force (aeure. Si$"e LC@C "o%ld $o! possibly "o$!i$%e "o$s!%"!i$, !+e b%ildi$, %$de !+e "i"%ms!a$"es pe#aili$, i! "a$$o! be +eld liable &o a$y delay !+a! es%l!ed &om !+e "a%ses a&oeme$!io$ed. Philippine Realty and 9olding !orp. vs. Ley !onst. and ev. !orp.7Ley !ons. and ev. !orp. vs. Philippine Realty and 9olding !orp., G.R. =o. 455<0JG.R. =o. 4K0K'. %$e 4( *)44 Co$!a"!; dama,es aisi$, &om bea"+ o& "o$!a"!. T+e Co%! &i$ds !+a! si$"e pe!i!io$es? "omplai$! aose &om a "o$!a"! !+e do"!i$e o& po9ima!e "a%se w+i"+ is ele#a$! o$ly i$ a"!io$s &o H%asiBdeli"!s &i$ds $o appli"a!io$ !o i!. W+a! applies i$ !+e pese$! "ase is A!i"le 44K) o& !+e Ci#il Code w+i"+ eads: /DT+ose w+o i$ !+e pe&oma$"e o& !+ei obli,a!io$s ae ,%il!y o& &a%d $e,li,e$"e o delay a$d !+ose w+o i$ a$y ma$$e "o$!a#e$e !+e !e$o !+eeo& ae liable &o dama,es.7 ea"+ o& "o$!a"! le,al is de&i$ed as !+e &ail%e wi!+o%! le,al easo$ "omply wi!+ !+e a "o$!a"!. is also de&i$ed as !+e &ail%e wi!+o%! e9"%se !o pe&om a$y pomise w+i"+ !o &oms !+e w+ole o !ems pa! o&o&!+e "o$!a"!.I!As &o pe!i!io$es? "laim !+a! espo$de$! depa!ed &om i!s ver)al a,eeme$! wi!+ pe!i!io$es !+e same &ails ,i#e$ !+a! !+e wi!!e$ "o$!a"! w+i"+ !+e pa!ies e$!eed i$!o !+e day be&oe !+e e#e$! bei$, !+e law be!wee$ !+em. Spouses Luigi "uanio and Anna "uanio v. /akati Shangri8 la 9otel and Resort, Inc .; G.R. =o. 4'))4. Feb%ay K *)44. Res"issio$. Ga$!i$, !+a! a es"issio$ "a$ be pemi!!ed %$de A!i"le 44'4 !+e Co%! s!ill "a$$o! allow i! &o !+e easo$ !+a! "o$sidei$, !+e "i"%ms!a$"es !+ee was o$ly a sli,+! o "as%al bea"+ i$ !+e &%l&illme$! o& !+e obli,a!io$. U$less !+e pa!ies s!ip%la!ed i! es"issio$ is allowed o$ly w+e$ !+e bea"+ o& !+e "o$!a"! is s%bs!a$!ial a$d &%$dame$!al !o !+e &%l&illme$! o& !+e obli,a!io$. W+e!+e !+e bea"+ is sli,+! o s%bs!a$!ial is la,ely de!emi$ed by !+e a!!e$da$! "i"%ms!a$"es. /ila A. Reyes v.
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moe popely resolution, a pi$"ipal a"!io$ based o$ bea"+ o& &ai!+ by !+e o!+e pa!y w+o #iola!es !+e e"ipo"i!y be!wee$ !+em. T+e bea"+ "o$!empla!ed i$ !+e po#isio$ is !+e obli,o?s &ail%e !o "omply wi!+ a$ e9is!i$, obli,a!io$. T+%s !+e powe !o es"i$d is ,i#e$ o$ly !o !+e i$%ed pa!y. T+e i$%ed pa!y is !+e pa!y w+o +as &ai!+&%lly &%l&illed +is obli,a!io$ o is eady a$d willi$, !o pe&om +is obli,a!io$. >e!i!io$es may $o! %s!i&y R+o,e$?s !emi$a!io$ o& !+e "o$!a"! %po$ ,o%$ds o& $o$Bpayme$! o& po,ess billi$, a$d %$"oopea!i#e a!!i!%de o& espo$de$! T+e >la-a a$d i!s employees i$ e"!i&yi$, !+e #iola!io$s w+i"+ wee !+e basis &o iss%a$"e o& !+e s!oppa,e ode. 8a#i$, bea"+ed !+e "o$!a"!%al obli,a!io$ i! +ad e9pessly ass%med i.e., !o "omply wi!+ all laws %les a$d e,%la!io$s o& !+e lo"al a%!+oi!ies R+o,e$ was aleady a! &a%l!. Respo$de$! T+e >la-a o$ !+e o!+e +a$d was %s!i&ied i$ wi!++oldi$, payme$! o$ R+o,e$?s &is! po,ess billi$, o$ a""o%$! o& !+e s!oppa,e ode a$d addi!io$ally d%e !o disappeaa$"e o& ow$eB&%$is+ed ma!eials a! !+e obsi!e. 9eirs of Ra(on !. "aite, et al. vs. he Pla5a, Inc. and "4 Insurance
!orporation> ".R. #o. $22'%&, ;anuary +', +$$. Co$!a"!s; es"issio$. U$de A!i"le 44'4 o& !+e Ci#il Code !+e a,,ie#ed pa!y +as a "+oi"e be!wee$ spe"i&i" pe&oma$"e a$d es"issio$ wi!+ dama,es i$ ei!+e "ase. 8owe#e we +a#e %led !+a! i& spe"i&i" pe&oma$"e be"omes impa"!i"al o impossible !+e "o%! may ode es"issio$ wi!+ dama,es !o !+e i$%ed pa!y. A&!e !+e lapse o& moe !+a$ () yeas i! is $ow impossible !o impleme$! !+e loa$ a,eeme$! as i! was wi!!e$ "o$sidei$, !+e abse$"e o& e#ide$"e as !o !+e isi$, "os!s o& "o$s!%"!io$ as well as !+e ob#io%s "+a$,es i$ ma2e! "o$di!io$s o$ !+e #iabili!y o& !+e opea!io$s o& !+e +o!el. We deem i! eH%i!able a$d pa"!i"able !o es"i$d !+e obli,a!io$ o& @> !o deli#e !+e bala$"e o& !+e loa$ po"eeds !o Ma"eda. I$ e9"+a$,e we ode @> !o pay Ma"eda !+e #al%e o& Ma"eda?s "as+ eH%i!y o& >45(('0.)5 by way o& a"!%al dama,es pl%s !+e appli"able i$!ees! a!e. T+e pese$! %li$, "omes wi!+i$ !+e p%#iew o& Ma"eda?s a$d @>?s payes &o /o!+e elie&s %s! o eH%i!able %$de !+e pemises.7 Bonifacio San5 /aceda, ;r. vs. B3 7 BP 0s. Bonifacio San5 /aceda, ;r., ".R. #o. $2*-2- ".R. #o. $2&$, August $$, +$. Co$!a"!s; es"issio$. ALC %$de!oo2 i$ !+e a,eeme$! !o a""omplis+ <(.'4 o& !+e ed%"ed poe"! by !+e e$d o& @e"embe 4''0. T+e a,eeme$!?s !+es+old was !+ee&oe ('.5*. %! ALC was o$ly able !o a""omplis+ ().0) w+i"+ was o$ly K).4< o& !+e s"+ed%le well below !+e ') po,ess eH%ied by Cla%se 4). A$d e#e$ i& delay d%e !o bad wea!+e "o%ld be &a"!oed i$ ALC wo%ld s!ill &all below !+e ') !a,e!. O$ !+is s"oe alo$e es"issio$ was s!ill %s!i&ied. T+e ') po,ess is a eH%ieme$! imposed by !+e pa!ies !o !+e a,eeme$!. As a "o$!a"!%al obli,a!io$ !+is s%pesedes !+e !+es+old imposed by law. Si$"e !+e pa!ies e$!eed i$!o !+e a,eeme$! pimaily d%e !o i$i!ial delays i$ !+e poe"! !+e !ime!able i$s!i!%!ed i$ i! be"ame a$ i$!e,al pa! o& !+e a,eeme$! a$ ass%a$"e !+a! !+e poe"! wo%ld be "omple!ed o$ !ime. ALC?s &ail%e !o 2eep %p wi!+ !+e a!e o& po,ess as "o$!a"!%ally ma$da!ed is a s%bs!a$!ial a$d &%$dame$!al bea"+ w+i"+ wo%ld de&ea! !+e #ey p%pose o& !+e a,eeme$!. T+%s !+e @>W8 was e$!i!led !o !emi$a!e !+e poe"! a$d e9pel ALC &om i!. AL! industries, Inc. vs. epart(ent of Pu)lic orks and 9igh@ays, ".R. #o. $2<+$-8+, August $$, +$. Co$!a"!s; es"issio$; e"ipo"al obli,a!io$s. T+e i,+! !o es"i$d a "o$!a"! aises o$"e !+e o!+e pa!y de&a%l!s i$ !+e pe&oma$"e o& +is obli,a!io$. I$ de!emi$i$, w+e$ de&a%l! o""%s A!i"le 44'4 s+o%ld be !a2e$ i$ "o$%$"!io$ wi!+ A!i"le 44' o& !+e same law. I$ e"ipo"al obli,a!io$s as i$ a "o$!a"! o& sale !+e ,e$eal %le is !+a! !+e &%l&illme$! o& !+e pa!ies? espe"!i#e obli,a!io$s s+o%ld be sim%l!a$eo%s. 8e$"e $o dema$d is ,e$eally $e"essay be"a%se o$"e a pa!y &%l&ills +is obli,a!io$ a$d !+e o!+e pa!y does $o! &%l&ill +is !+e la!!e a%!oma!i"ally i$"%s i$ delay. %! w+e$ di&&ee$! da!es &o pe&oma$"e o& !+e obli,a!io$s ae &i9ed !+e de&a%l! &o ea"+ obli,a!io$ m%s! be de!emi$ed by !+e %les ,i#e$ i$ !+e &is! paa,ap+ o& A!i"le 44' !+a! is !+e o!+e pa!y wo%ld i$"% i$ delay o$ly &om !+e mome$! !+e o!+e pa!y dema$ds &%l&illme$! o& !+e &ome?s obli,a!io$. T+%s e#e$ i$ e"ipo"al obli,a!io$s i& !+e peiod &o !+e &%l&illme$! o& !+e obli,a!io$ is &i9ed dema$d %po$ !+e obli,ee is s!ill $e"essay be&oe !+e obli,o "a$ be "o$sideed i$ de&a%l! a$d be&oe a "a%se o& a"!io$ &o es"issio$ will a""%e. Solar 9arvest Incorporated vs. avao !orrugated !arton !orporation, ".R. #o. $2''%', ;uly +', +$. Co$!a"!s; es"issio$. U$less !+e pa!ies s!ip%la!ed i! es"issio$ is allowed o$ly w+e$ !+e bea"+ o& !+e "o$!a"! is s%bs!a$!ial a$d &%$dame$!al !o !+e &%l&illme$! o& !+e obli,a!io$. W+e!+e !+e bea"+ is sli,+! o s%bs!a$!ial is la,ely de!emi$ed by !+e a!!e$da$! "i"%ms!a$"es. GG Spo!swea a$"+os i!s "laim &o es"issio$ o& a ese#a!io$ a,eeme$! 3!+e /A,eeme$!76 &o !+e p%"+ase o& %$i!s a$d pa2i$, slo!s i$ a "o$domi$%m pope!y bei$, de#eloped by Wold Class o$ !wo ,o%$ds: 3a6 i!s dissa!is&a"!io$ wi!+ !+e "omple!io$ da!e; a$d 3b6 !+e la"2 o& a Co$!a"! !o Sell. 8owe#e GG Spo!swea "a$$o! "laim !+a! i! did $o! 2$ow !+e !imeB&ame &o !+e poe"!?s "omple!io$ w+e$ i! e$!eed i$!o !+e A,eeme$! wi!+ Wold Class. As Wold
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8a#i$, 2$ow$ !+e da!e !+e &a"! o& dissa!is&a"!io$ wi!+ i! does $o! "o$s!i!%!e a bea"+ so s%bs!a$!ial as !o e$de !+e A,eeme$! es"issible. GG Spo!swea +as $e#e alle,ed !+a! !+e ,i#e$ @e"embe 45 4''0 "omple!io$ da!e #iola!es !+e "omple!io$ da!e pe#io%sly a,eed %po$ by !+e pa!ies. I$ &a"! $ow+ee does GG Spo!swea alle,e !+a! !+e pa!ies e#e a,eed %po$ a$ ealie "omple!io$ da!e. E#e$ ass%mi$, !+a! GG Spo!swea was $o! awae o& !+e e9a"! "omple!io$ da!e we $o!e !+a! GG Spo!swea si,$ed !+e A,eeme$! despi!e !+e A,eeme$!?s omissio$ !o e9pessly s!a!e a spe"i&i" "omple!io$ da!e. T+is die"!ly implies !+a! a spe"i&i" "omple!io$ da!e was $o! a ma!eial "o$sidea!io$ &o GG Spo!swea w+e$ i! e9e"%!ed !+e A,eeme$!. =ei!+e is !+e i$i!ial la"2 o& a Li"e$se !o Sell a basis !o "a$"el !+e A,eeme$! a$d +as i$ &a"! e&&e"!i#ely bee$ "%ed e#e$ i& i! may be "o$sideed a$ i$i!ial de&e"!. We !+ee&oe &i$d $o easo$ &o GG Spo!swea !o be dissa!is&ied D@i,es!e?s =o!e: I ,%ess !+e "o%! mea$s /!o be dissa!is&ied si$"e a bea"+ +ad o""%ed wi!+ !+e i$di"a!ed "omple!io$ da!e. E#e$ i& i! +ad bee$ %$+appy wi!+ !+e "omple!io$ da!e !+is ,o%$d s!a$di$, alo$e is $o! s%&&i"ie$! basis !o es"i$d !+e A,eeme$!; %$+appi$ess is a s!a!e o& mi$d $o! a de&e"! a#ailable i$ law as a basis !o es"i$d a "o$!a"!. D@i,es!e?s $o!e: Las! li$e ,ood "a$dida!e &o "a s!i"2e &o I> membes. O$ GG Spo!wea?s se"o$d ,o%$d we $o!e !+a! !+e A,eeme$! e9pessly po#ides !+a! GG Spo!swea s+all be e$!i!led !o a Co$!a"! !o Sell o$ly %po$ i!s payme$! o& a! leas! () o& !+e !o!al "o$!a"! pi"e. Si$"e GG Spo!swea +ad o$ly paid *4 o& !+e !o!al "o$!a"! pi"e Wold Class?s obli,a!io$ !o e9e"%!e a Co$!a"! !o Sell +ad $o! ye! aise$. A""odi$,ly GG Spo!swea +ad $o basis !o "laim !+a! Wold Class bea"+ed !+is obli,a!io$ a$d !o see2 !+e appli"a!io$ o& A!i"le 44'4 o& !+e Ci#il Code. ".". Sports@ear /fg. !orp vs. orld !lass Properties, Inc., ".R. #o. $%+2+, /arch +, +$. Co$!a"!s; es"issio$. Res"issio$ is o$ly allowed w+e$ !+e bea"+ is so s%bs!a$!ial a$d &%$dame$!al as !o de&ea! !+e obe"! o& !+e pa!ies i$ e$!ei$, i$!o !+e "o$!a"!. T+e "o%! &o%$d $o s%"+ s%bs!a$!ial o ma!eial bea"+. I! is !%e !+a! espo$de$! &ailed !o pay !+e K !+ a$d 0!+ i$s!allme$!s o& !+e p%"+ase pi"e. 8owe#e "o$sidei$, !+e "i"%ms!a$"es o& !+e i$s!a$! "ase pa!i"%laly !+e po#isio$s o& !+e kasunduan espo$de$! "a$$o! be deemed !o +a#e "ommi!!ed a seio%s bea"+. I$ !+e &is! pla"e espo$de$! was $o! i$ de&a%l! as pe!i!io$e $e#e made a dema$d &o payme$!. Also %$de bo!+ !+e kasunduan sa )ilihan ng lupa a$d !+e kasunduan pe!i!io$e %$de!oo2 !o "a%se !+e s%#ey o& !+e pope!y i$ ode !o de!emi$e !+e po!io$ e9"l%ded &om !+e sale as well as !+e po!io$ !a#esed by !+e =apo"o powe li$e. @espi!e epea!ed dema$ds by espo$de$! +owe#e pe!i!io$e &ailed !o pe&om +is obli,a!io$. T+%s "o$sidei$, !+a! !+ee was a bea"+ o$ !+e pa! o& pe!i!io$e 3a$d $o ma!eial bea"+ o$ !+e pa! o& espo$de$!6 +e "a$$o! popely i$#o2e +is i,+! !o es"i$d !+e "o$!a"!. 0alentin /ovido su)stituted )y /arginito /ovido vs. Luisa Reyes Pastor, ".R. #o. $2++2-, e)ruary $$, +$. Co$!a"!; e"ipo"al obli,a!io$s; emedy o& es"issio$. W+ile $o "a%sal &a%d a!!e$ded !+e e9e"%!io$ o& !+e sales "o$!a"! !+e &a%d e9is!ed i$ !+e "o$s%mma!io$ s!a,e o& !+e sale w+e$ !+e pa!ies wee i$ !+e po"ess o& pe&omi$, !+ei espe"!i#e obli,a!io$s %$de !+e pe&e"!ed "o$!a"! o& sale. I$disp%!ably !+e selles +ad aleady pe&omed !+ei obli,a!io$ o& e9e"%!i$, !+e @eed o& Sale w+i"+ led !o !+e "a$"ella!io$ o& !+ei !i!le i$ &a#o o& !+e b%ye. Respo$de$! b%yes o$ !+e o!+e +a$d &ailed !o pe&om !+ei "oela!i#e obli,a!io$ o& payi$, !+e &%ll amo%$! o& !+e "o$!a"! pi"e. Clealy espo$de$!s "ommi!!ed a s%bs!a$!ial bea"+ o& !+ei e"ipo"al obli,a!io$ e$!i!li$, !+e pe!i!io$es !o !+e es"issio$ o& !+e sales "o$!a"!. U$de !+e Ci#il Code a$ i$%ed pa!y may "+oose be!wee$ !+e &%l&illme$! a$d !+e es"issio$ o& !+e obli,a!io$ wi!+ payme$! o& dama,es i$ ei!+e "ase. 8e may also see2 es"issio$ e#e$ a&!e +e +as "+ose$ &%l&illme$! i& !+e la!!e s+o%ld be"ome impossible. Respo$de$!?s "laims !+a! es"issio$ is $o! pope a$d !+a! +e s+o%ld be ,i#e$ moe !ime !o pay &o !+e %$paid emai$i$, bala$"e o& !+e p%"+ase pi"e "a$$o! be "o%$!e$a$"ed. 8a#i$, a"!ed &a%d%le$!ly i$ pe&omi$, +is obli,a!io$ !+e espo$de$! is $o! e$!i!led !o moe !ime !o pay !+e emai$i$, bala$"e a$d !+eeby ease !+e de&a%l! o bea"+ !+a! +e +ad delibea!ely i$"%ed. To do o!+ewise wo%ld be !o sa$"!io$ a delibea!e a$d ei!ea!ed i$&i$,eme$! o& !+e "o$!a"!%al obli,a!io$s i$"%ed by !+e b%yes a$ a!!i!%de ep%,$a$! !o !+e s!abili!y a$d obli,a!oy &o"e o& "o$!a"!s. Spouses !ar(en ongson and ;ose ongson vs. ?(ergency Pa@nshop Bula, Inc. et al., ".R. #o. $'2%2*, ;anuary $&, +$. Co$!a"!; es"issio$. T+e emedy o& /es"issio$7 is $o! "o$&i$ed !o !+e es"issible "o$!a"!s e$%mea!ed %$de A!i"le 4(04. A!i"le 44'4 o& !+e Ci#il Code ,i#es !+e i$%ed pa!y i$ e"ipo"al obli,a!io$s s%"+ as w+a! "o$!a"!s ae abo%! !+e op!io$ !o "+oose be!wee$ &%l&illme$! a$d /es"issio$.7 A!%o M. Tole$!i$o a wellB2$ow$ a%!+oi!y i$ "i#il law is H%i"2 !o $o!e +owe#e !+a! !+e eH%i#ale$! o& A!i"le 44'4 i$ !+e old "ode a"!%ally %ses !+e !em /esol%!io$7 a!+e !+a$ !+e pese$! /es"issio$.7 T+e "aliba!ed mea$i$,s o& !+ese !ems ae dis!i$"!. /Res"issio$7 is a s%bsidiay a"!io$ based o$ i$%y !o !+e plai$!i&&?s e"o$omi" i$!ees!s as des"ibed i$ A!i"les 4(0) a$d 4(04. /Resol%!io$7 !+e a"!io$ e&eed !o i$ A!i"le 44'4 o$ !+e o!+e +a$d is based o$ !+e de&e$da$!?s bea"+ o& &ai!+ a #iola!io$ o& !+e e"ipo"i!y be!wee$ !+e pa!ies. As a$ a"!io$ based o$ !+e bi$di$, &o"e o& a wi!!e$ "o$!a"! !+ee&oe es"issio$ 3esol%!io$6 %$de A!i"le 44'4 pes"ibes i$ 4) yeas. Te$ yeas is !+e peiod o& pes"ip!io$ o& a"!io$s based o$ a wi!!e$ "o$!a"! %$de A!i"le 44<<.
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4(0' w+e$ !+e i$%y &om w+i"+ !+e !wo 2i$ds o& a"!io$s dei#e is !+e same. 9eirs of Sofia Ouirong, etc. vs. evelop(ent Bank of the Philippines, ".R. #o. $2<**$, ece()er <, +-. Loa$; $o peiod &o payme$!. T+ee is $o da!e o& payme$! i$ !+e pomissoy $o!es. A""odi$,ly !+e "edi!o +as !+e i,+! !o dema$d immedia!e payme$!. A!i"le 44K0 o& !+e Ci#il Code applies. T+e &a"! !+a! !+e "edi!o was "o$!e$! wi!+ !+e pio mo$!+ly "+e"2Bo&& &om !+e deb!o?s salay is o& $o mome$!. O$"e !+e debo! de&a%l!ed !+e "edi!o "o%ld ma2e a dema$d !o e$&o"e a p%e obli,a!io$. 9ongkong and Shanghai Banking !orp., Ltd. Staff Retire(ent Plan vs. Sps. Bienvenido and ?ditha Broque5a, ".R. #o. $2%'$, #ove()er $2, +$. Co$!a"!s; &%l&illme$! o& "o$di!io$. E#e$ ass%mi$, arguendo !+a! !+e a,eeme$! o& !+e pa!ies was s%be"! !o !+e "o$di!io$ !+a! RSLAI +ad !o appo#e !+e ass%mp!io$ o& mo!,a,e !+e said "o$di!io$ was "o$sideed &%l&illed as pe!i!io$e pe#e$!ed i!s &%l&illme$! by payi$, +is o%!s!a$di$, obli,a!io$ a$d !a2i$, ba"2 !+e "e!i&i"a!es o& !i!le wi!+o%! e#e$ $o!i&yi$, espo$de$!. I$ !+is "o$$e"!io$ A!i"le 440 o& !+e Ci#il Code po#ides: /A!i"le 440. T+e "o$di!io$ s+all be deemed &%l&illed w+e$ !+e obli,o #ol%$!aily pe#e$!s i!s &%l&illme$!.7 Ray(undo S. e Leon vs. Benita . 3ng, G.R. #o. $2*&, e)ruary +, +$ Obli,a!io$s; oi$! Obli,a!io$. T+e core issue !o be esol#ed !+e$ is w+i"+ be!wee$ oi$! #e$!%es Masma$ @ysdale a$d Go!es"o beas !+e liabili!y !o pay >GI i!s %$paid "laims. To Masma$ @ysdale i! is Go!es"o si$"e %$de !+e oi$! #e$!%e a,eeme$! 3A6 "o$s!%"!io$ &%$di$, &o !+e poe"! was !o be ob!ai$ed &om Go!es"o?s "as+ "o$!ib%!io$ as i!s 3Masma$ @ysdale?s6 pa!i"ipa!io$ i$ !+e #e$!%e was limi!ed !o !+e la$d. Go!es"o mai$!ai$s +owe#e !+a! i! +as $o liabili!y !o pay >GI si$"e i! was d%e !o !+e &a%l! o& Masma$ @ysdale !+a! >GI was %$able !o "omple!e i!s %$de!a2i$,. T+e Co%! &i$ds Masma$ @ysdale a$d Go!es"o ointly liable !o >GI. >GI e9e"%!ed a !e"+$i"al se#i"e "o$!a"! wi!+ !+e oi$! #e$!%e b%! was $e#e a pa!y !o !+e A. W+ile !+e A "lealy spelled o%! inter alia !+e "api!al "o$!ib%!io$s o& Masma$ @ysdale 3la$d6 a$d Go!es"o 3"as+6 as well as !+e &%$di$, a$d &i$a$"i$, me"+a$ism &o !+e poe"! !+e same "a$$o! be %sed !o de&ea! !+e law&%l "laim o& >GI a,ai$s! !+e !wo oi$! #e$!%esBpa!$es. T+e Co%! $o!ed A!i"les 4*)K a$d 4*)0 o& !+e Ci#il Code w+i"+ espe"!i#ely ead:
A!. 4*)K. "o$"%e$"e !wo o 'as moea "edi!os o o& &%o o# o# &'a& +o#""a' "&o#s &'"!ssa+" ol!*a&!o$ o"s $o& !+l&'a&T+e "a' o$" of &'"o&fo#+"# #!*'& &o "+a$ o$" !$ of o$" &'" a$ la&&"# o,$ &o #"$"# "$&!#" o+l!a$" %!&' &'" #"s&a&!o$s. T+ee is a soliday liabili!y o$ly w+e$ !+e obli,a!io$ e9pessly so s!a!es o w+e$ !+e law o $a!%e o& !+e obli,a!io$ eH%ies solidai!y. A!. 4*)0. I& &om !+e law o !+e $a!%e o !+e wodi$, o& !+e obli,a!io$s !o w+i"+ !+e pe"edi$, a!i"le e&es !+e "o$!ay does $o! appea &'" #"!& o# "& s'all " #"s,+" &o " !3!" !$&o as +a$- ";,al s'a#"s as &'"#" a#" #"!&o#s o# "&o#s !+e "edi!s o deb!s bei$, "o$sideed dis!i$"! &om o$e a$o!+e s%be"! !o !+e R%les o& Co%! ,o#e$i$, !+e m%l!ipli"i!y o& s%i!s. 3Emp+asis !+e Co%!?s.6 I! s!a!ed !+a! i! "o%ld be pes%med !+a! !+e obli,a!io$ owi$, !o >GI is oi$! be!wee$ Masma$ @ysdale a$d Go!es"o. T+e o$ly !ime !+a! !+e A may be made !o apply i$ !+e pese$! pe!i!io$s is w+e$ !+e liabili!y o& !+e oi$! #e$!%es !o ea"+ o!+e wo%ld se! i$. /ars(an rysdale vs. Philippine "eoanalytics, et al. and "otesco Properties vs. /ars(an rysdale Land, Inc., et al., ".R. #o. $%<<2* ".R. #o. $%<<2', ;une +-, +$ . Obli,a!io$s; soliday liabili!y wi!+ a "opoa!io$. @o"!i$e di"!a!es !+a! a "opoa!io$ is i$#es!ed by law wi!+ a peso$ali!y sepaa!e a$d dis!i$"! &om !+ose o& !+e peso$s "omposi$, i! s%"+ !+a! sa#e &o "e!ai$ e9"ep!io$s "opoa!e o&&i"es w+o e$!eed i$!o "o$!a"!s i$ be+al& o& !+e "opoa!io$ "a$$o! be +eld peso$ally liable &o !+e liabili!ies o& !+e la!!e. >eso$al liabili!y o& a "opoa!e die"!o !%s!ee o o&&i"e alo$, 3al!+o%,+ $o! $e"essaily6 wi!+ !+e "opoa!io$ may #alidly a!!a"+ as a %le o$ly w+e$ 1 346 +e asse$!s !o a pa!e$!ly %$law&%l a"! o& !+e "opoa!io$ o w+e$ +e is ,%il!y o& bad &ai!+ o ,oss $e,li,e$"e i$ die"!i$, i!s a&&ais o w+e$ !+ee is a "o$&li"! o& i$!ees! es%l!i$, i$ dama,es !o !+e "opoa!io$ i!s s!o"2+oldes o o!+e peso$s; 3*6 +e "o$se$!s !o !+e iss%a$"e o& wa!eed dow$ s!o"2s o w+o +a#i$, 2$owled,e !+eeo& does $o! &o!+wi!+ &ile wi!+ !+e "opoa!e se"e!ay +is wi!!e$ obe"!io$ !+ee!o; 3(6 +e a,ees !o +old +imsel& peso$ally a$d solidaily liable wi!+ !+e "opoa!io$; o 3<6 +e is made by a spe"i&i" po#isio$ o& law peso$ally a$sweable &o +is "opoa!e a"!io$. Oueensland8okyo !o((odities, Inc., et al. vs. ho(as "eorge, ".R. #o. $2+2+2. Septe()er %, +$
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I$ !+is "ase $o$e o& !+ese e9"ep!io$al "i"%ms!a$"es is pese$!. I$ i!s de"isio$ !+e !ial "o%! &ailed !o po#ide a "lea ,o%$d w+y E%,e$e Lim was +eld solidaily liable wi!+ S+imp Spe"ialis!s. T+e !ial "o%! meely s!a!ed !+a! E%,e$e Lim si,$ed o$ be+al& o& !+e S+imp Spe"ialis!s as >eside$! wi!+o%! e9plai$i$, !+e $eed !o dise,ad !+e sepaa!e "opoa!e peso$ali!y. T+e CA "oe"!ly %led !+a! !+e e#ide$"e !o +old E%,e$e Lim solidaily liable s+o%ld be moe !+a$ %s! si,$i$, o$ be+al& o& !+e "opoa!io$ be"a%se a!i&i"ial e$!i!ies "a$ o$ly a"! !+o%,+ $a!%al peso$s. T+%s !+e CA was "oe"! i$ dismissi$, !+e "ase a,ai$s! E%,e$e Lim. Shri(p Specialist, Inc. vs. ui8riu(ph Agri8Industrial !orporation7ui8ri(ph Agri8Industrial !orporation vs. Shri(p Specialist, Inc. et al., ".R. #o. $'%2&'7".R. #o. $2$*2', ece()er 2, +-. >ayme$!; e9!i$,%is+me$! o& obli,a!io$. T+e RTC a$d !+e Co%! o& Appeals "oe"!ly %led !+a! !+e pe!i!io$e?s obli,a!io$ +as $o! bee$ e9!i$,%is+ed. T+e pe!i!io$e?s obli,a!io$ "o$sis!s o& payme$! o& a s%m o& mo$ey. I$ ode &o pe!i!io$e?s payme$! !o be e&&e"!i#e i$ e9!i$,%is+i$, i!s obli,a!io$ i! m%s! be made !o !+e pope peso$. A!i"le 4*<) o& !+e Ci#il Code s!a!es: A#&. 120. >ayme$! s+all be made !o !+e peso$ i$ w+ose &a#o !+e obli,a!io$ +as bee$ "o$s!i!%!ed o +is s%""esso i$ i$!ees! o a$y peso$ a%!+oi-ed !o e"ei#e i!. I$ !e()rano v. !ity of Butuan !+is Co%! el%"ida!ed o$ +ow payme$! will e&&e"!i#ely e9!i$,%is+ a$ obli,a!io$ !o wi!: >ayme$! made by !+e deb!o !o !+e peso$ o& !+e "edi!o o !o o$e a%!+oi-ed by +im o by !+e law !o e"ei#e i! e9!i$,%is+es !+e obli,a!io$. W+e$ payme$! is made !o !+e wo$, pa!y +owe#e !+e obli,a!io$ is $o! e9!i$,%is+ed as !o !+e "edi!o w+o is wi!+o%! &a%l! o $e,li,e$"e e#e$ i& !+e deb!o a"!ed i$ %!mos! ,ood &ai!+ a$d by mis!a2e as !o !+e peso$ o& !+e "edi!o o !+o%,+ eo i$d%"ed by &a%d o& a !+id peso$. I$ ,e$eal a payme$! i$ ode !o be e&&e"!i#e !o dis"+a,e a$ obli,a!io$ m%s! be made !o !+e pope peso$. T+%s payme$! m%s! be made !o !+e obli,ee +imsel& o !o a$ a,e$! +a#i$, a%!+oi!y e9pess o implied !o e"ei#e !+e pa!i"%la payme$!. >ayme$! made !o o$e +a#i$, appae$! a%!+oi!y !o e"ei#e !+e mo$ey will as a %le be !ea!ed as !+o%,+ a"!%al a%!+oi!y +ad bee$ ,i#e$ &o i!s e"eip!. Li2ewise i& payme$! is made !o o$e w+o by law is a%!+oi-ed !o a"! &o !+e "edi!o i! will wo2 a dis"+a,e. T+e e"eip! o& mo$ey d%e o$ a %d,me$! by a$ o&&i"e a%!+oi-ed by law !o a""ep! i! will !+ee&oe sa!is&y !+e deb!. T+e espo$de$! was able !o es!ablis+ !+a! !+e L> "+e"2 was $o! e"ei#ed by +e o by +e a%!+oi-ed peso$$el. T+e >=>?s ow$ e"ods s+ow !+a! i! was "laimed a$d si,$ed &o by C%- w+o is ope$ly 2$ow$ as bei$, "o$$e"!ed !o 8i,+la$d E$!epises a$o!+e "o$!a"!o. 8e$"e abse$! a$y s+owi$, !+a! !+e espo$de$! a,eed !o !+e payme$! o& !+e "o$!a"! pi"e !o a$o!+e peso$ o !+a! s+e a%!+oi-ed C%- !o "laim !+e "+e"2 o$ +e be+al& !+e payme$! !o be e&&e"!i#e m%s! be made !o +e. Repu)lic of the Philippines, represented )y the chief, Philippine #ational Police vs. hi hu huy e "u5(an> G.R. =o. 4K5)*4. %$e 45 *)44 >ayme$!; pomissoy $o!e. A!i"le 4*<' paa,ap+ * o& !+e Ci#il Code po#ides /DT +e deli#ey o& pomissoy $o!es payable !o ode o bills o& e9"+a$,e o o!+e me"a$!ile do"%me$!s s+all #o," &'" "ff"& of a-+"$& o$l- %'"$ &'"- 'a3" ""$ as'" o w+e$ !+o%,+ !+e &a%l! o& !+e "edi!o !+ey +a#e bee$ impaied.7 DEmp+asis s%pplied I$ !+e "ase a! ba $o "as+ payme$! was po#ed. I! was $ei!+e "o$&imed !+a! !+e "+e"2s iss%ed by Losi$ wee a"!%ally e$"as+ed by i!ai"+. T+%s !+e Co%! "a$$o! "o$side !+a! payme$! m%"+ less o#epayme$! made by Lo"si$. 0itarich !orporation vs. !hona Locsin, ".R. #o. $%$&', #ove()er $&, +$. >ayme$!; &om a !+id peso$. La$d a$2 "o$!e$ds !+a! A!. 4*( o& !+e Ci#il Code ba"2s !+ei "laim !+a! Al&edo s+o%ld +a#e so%,+! e"o%se a,ai$s! !+e Spo%ses Sy i$s!ead o& La$d a$2. A!. 4*( po#ides: T+e "edi!o is $o! bo%$d !o a""ep! payme$! o pe&oma$"e by a !+id peso$ w+o +as $o i$!ees! i$ !+e &%l&illme$! o& !+e obli,a!io$ %$less !+ee is a s!ip%la!io$ !o !+e "o$!ay. W+oe#e pays &o a$o!+e may dema$d &om !+e deb!o w+a! +e +as paid e9"ep! !+a! i& +e paid wi!+o%! !+e 2$owled,e o a,ai$s! !+e will o& !+e deb!o +e "a$ e"o#e o$ly i$so&a as !+e payme$! +as bee$ be$e&i"ial !o !+e deb!o. We a,ee wi!+ La$d a$2 o$ !+is poi$! as !o !+e &is! pa! o& paa,ap+ 4 o& A!. 4*(. La$d a$2 was $o! bo%$d !o a""ep! Al&edo?s payme$! si$"e as &a as !+e &ome was "o$"e$ed +e did $o! +a#e a$ i$!ees! i$ !+e payme$! o& !+e loa$ o& !+e Spo%ses Sy. 8owe#e i$ !+e "o$!e9! o& !+e se"o$d pa! o& said paa,ap+ Al&edo was $o! ma2i$, payme$! !o &%l&ill !+e
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DT+e "o$!a"! was $o! pe&e"!ed o "o$s%mma!ed be"a%se o& !+e ad#ese &i$di$, i$ !+e "edi! i$#es!i,a!io$ w+i"+ led !o !+e disappo#al o& !+e poposed ass%mp!io$. T+ee was $o e#ide$"e pese$!ed !+a! plai$!i&& was i$&omed o& !+e disappo#al. W+a! +e e"ei#ed was a le!!e da!ed May ** 4''K i$&omi$, +im !+a! !+e a""o%$! o& spo%ses Sy +ad ma!%ed b%! !+ee Dwee $o payme$!s. T+is was se$! e#e$ be&oe !+e "o$d%"! o& !+e "edi! i$#es!i,a!io$ o$ %$e *) 4''K w+i"+ led !o !+e disappo#al o& !+e poposed ass%mp!io$ o& !+e loa$s o& spo%ses Sy. Al&edo as a !+id peso$ did $o! !+ee&oe +a#e a$ i$!ees! i$ !+e &%l&illme$! o& !+e obli,a!io$ o& !+e Spo%ses Sy si$"e +is i$!ees! +i$,ed o$ La$d a$2?s appo#al o& +is appli"a!io$ w+i"+ was de$ied. T+e "i"%ms!a$"es o& !+e i$s!a$! "ase s+ow !+a! !+e se"o$d paa,ap+ o& A!. 4*( does $o! apply. As Al&edo made !+e payme$! &o +is ow$ i$!ees! a$d $o! o$ be+al& o& !+e Spo%ses Sy e"o%se is $o! a,ai$s! !+e la!!e. A$d as Al&edo was $o! payi$, &o a$o!+e +e "a$$o! dema$d &om !+e deb!os !+e Spo%ses Sy w+a! +e +as paid. Land Bank of the Philippines vs. Alfredo 3ng, ".R. #o. $-2&&, #ove()er +*, +$. Co$!a"!s; payme$! o& deb! by a !+id pa!y. >e!i!io$es? i$#o"a!io$ o& A!i"le 4*( o& !+e Ci#il Code does $o! +elp !+em. T+ey "a$$o! de$y !+ei i$deb!ed$ess !o espo$de$! o$ !+e basis o& said a!i"le si$"e !+e payme$! ad#a$"ed by espo$de$! o$ pe!i!io$es? be+al& edo%$ded !o !+ei be$e&i! a$d pe!i!io$e $e#e obe"!ed !o i! w+e$ s+e "ame !o lea$ o& i!. I! is !+%s imma!eial !+a! pe!i!io$e was %$awae o& espo$de$!?s a"!io$ &o !+e law %l!ima!ely allows e"o#ey !o !+e e9!e$! !+a! !+e deb!osBpe!i!io$es wee be$e&i!ed. Spouses ivina !. Pu)lico and ;ose . Pu)lico vs. eresa Bautista, ".R. #o. $2*-', ;uly +, +$ @a"io$ e$ pa,o. A dacion en pago is ,o#e$ed by !+e law o& sales. Co$!a"!s o& sale "ome wi!+ waa$!ies ei!+e e9pess 3i& e9pli"i!ly s!ip%la!ed by !+e pa!ies6 o implied 3%$de A!i"le 45 ".R. #os. $'%'*' ".R. #o. $'%'''. ;anuary $+, +$$. Co$si,$a!io$. T+ee m%s! be &%ll "omplia$"e wi!+ !+e eH%isi!es o& "o$si,$a!io$ &o "o$si,$a!io$ !o be #alid. S%bs!a$!ial "omplia$"e is $o! e$o%,+. I$ Insular Life Assurance !o(pany, Ltd. v. oyota Bel8Air, Inc. !+e Co%! e$%mea!ed !+e eH%isi!es o& a #alid "o$si,$a!io$: 346 a deb! d%e; 3*6 !+e "edi!o !o w+om !e$de o& payme$! was made e&%sed wi!+o%! %s! "a%se !o a""ep! !+e payme$! o !+e "edi!o was abse$! %$2$ow$ o i$"apa"i!a!ed o se#eal peso$s "laimed !+e same i,+! !o "olle"! o !+e !i!le o& !+e obli,a!io$ was los!; 3(6 !+e peso$ i$!ees!ed i$ !+e pe&oma$"e o& !+e obli,a!io$ was ,i#e$ $o!i"e be&oe "o$si,$a!io$ was made; 3<6 !+e amo%$! was pla"ed a! !+e disposal o& !+e "o%!; a$d 356 !+e peso$ i$!ees!ed i$ !+e pe&oma$"e o& !+e obli,a!io$ was ,i#e$ $o!i"e a&!e !+e "o$si,$a!io$ was made. T+e ,i#i$, o& $o!i"e !o !+e peso$s i$!ees!ed i$ !+e pe&oma$"e o& !+e obli,a!io$ is ma$da!oy. Fail%e !o $o!i&y !+e peso$s i$!ees!ed i$ !+e pe&oma$"e o& !+e obli,a!io$ will e$de !+e "o$si,$a!io$ #oid. Soledad alton vs. "R ealty and evelop(ent !orporation, et al.; ".R. #o. $2+&22, ;anuary $-, +$$ . Reb%s si" s!a$!ib%s. Food Fes! leased pope!y &om So. Food Fes! so%,+! !o peB!emi$a!e !+e lease. So s%ed Food Fes! &o ee"!io$ payme$! o& aeas a$d dama,es. O$ !+e ma!!e o& dama,es So "laims !+a! Food Fes! did $o! e9e"ise "ae i$ emo#i$, !+e i$s!alla!io$s a$d &i9!%es !+eeby "a%si$, des!%"!io$ !o !+e pemises !o !+%s e$!i!le +im !o dama,es as well as !o dama,es "oespo$di$, !o %$eali-ed po&i!s 3 lucru( cessans6 !o a$swe &o !+e peiod d%i$, w+i"+ !+e %$i! was $o! e$!ed o%!. U$eali-ed po&i!s &all %$de !+e "a!e,oy o& a"!%al o "ompe$sa!oy dama,es. I& !+ee e9is!s a basis &o a easo$able e9pe"!a!io$ !+a! po&i!s wo%ld +a#e "o$!i$%ed !o be ,e$ea!ed +ad !+ee bee$ $o bea"+ o& "o$!a"! i$dem$i&i"a!io$ &o dama,es based o$ s%"+ e9pe"!ed po&i!s is pope. T+is is +owe#e s%be"! !o !+e %le !+a! a pa!y is e$!i!led !o a$ adeH%a!e "ompe$sa!io$ o$ly &o s%"+ pe"%$iay loss s%&&eed by +im as +e +as d%ly po#ed. O!+e !+a$ !+e p+o!o,ap+s e#i$"i$, dama,e !o !+e pemises $o e#ide$"e was po&&eed !o s+ow So?s e$!i!leme$! !o %$eali-ed po&i!s. T+a! !+e leased %$i! was $o! s%bseH%e$!ly leased is $o! solely a!!ib%!able !o Food Fes!. As bo$e by !+e e"ods $o e$o#a!io$ was %$de!a2e$ by So &o almos! !+ee yeas &ollowi$, Food Fes!?s #a"a!io$ o& !+e pemises i$ *))4. T+e H%o!a!io$s iss%ed by "o$s!%"!io$ "ompa$ies &o p%poses o& e$o#a!io$ wee iss%ed o$ly i$ *))<. 8owe#e So may see2 dama,es p%s%a$! !o !+e "o$!a"!. Respe"!i$, So?s "laim &o e$o#a!io$ e9pe$ses !+e same m%s! be de$ied abse$! poo& as !o !+e a"!%al "os! o& e$o#a!io$. O$ly &im o&&es o H%o!a!io$s &om "o$s!%"!io$ "ompa$ies ae i$ !+e e"ods. Followi$, A!i"le ***< o& !+e Ci#il Code +owe#e !+e appella!e "o%!?s awad o& !empea!e dama,es is i$ ode. T+is Co%! $o!es !+a! !+e appella!e "o%! did $o! awad liH%ida!ed dama,es i$ "o$!a#e$!io$ o& !+e "o$!a"!. As &o !+e appella!e "o%!?s awad o& >*)))).)) as a!!o$ey?s &ees !+e
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T+is a!i"le w+i"+ e$%$"ia!es !+e do"!i$e o& %$&oesee$ e#e$!s is $o! +owe#e a$ absol%!e appli"a!io$ o& !+e pi$"iple o& re)us sic stanti)us, w+i"+ wo%ld e$da$,e !+e se"%i!y o& "o$!a"!%al ela!io$s. T+e pa!ies !o !+e "o$!a"! m%s! be pes%med !o +a#e ass%med !+e is2s o& %$&a#oable de#elopme$!s. I! is !+ee&oe o$ly i$ absol%!ely e9"ep!io$al "+a$,es o& "i"%ms!a$"es !+a! eH%i!y dema$ds assis!a$"e &o !+e deb!o. Food Fes! "laims !+a! i!s &ail%e !o se"%e !+e $e"essay b%si$ess pemi!s a$d li"e$ses e$deed !+e impossibili!y a$d $o$Bma!eiali-a!io$ o& i!s p%pose i$ e$!ei$, i$!o !+e "o$!a"! o& lease i$ s%ppo! o& w+i"+ i! "i!es !+e ealieBH%o!ed po!io$ o& !+e pelimi$ay a,eeme$! da!ed %ly 4 4''' o& !+e pa!ies. T+e "a%se o esse$!ial p%pose i$ a "o$!a"! o& lease is !+e %se o e$oyme$! o& a !+i$,. A pa!y?s mo!i#e o pa!i"%la p%pose i$ e$!ei$, i$!o a "o$!a"! does $o! a&&e"! !+e #alidi!y o e9is!e$"e o& !+e "o$!a"!; a$ e9"ep!io$ is w+e$ !+e eali-a!io$ o& s%"+ mo!i#e o pa!i"%la p%pose +as bee$ made a "o$di!io$ %po$ w+i"+ !+e "o$!a"! is made !o depe$d. T+e e9"ep!io$ does $o! apply +ee. I! is "lea !+a! !+e "o$di!io$ se! &o!+ i$ !+e pelimi$ay a,eeme$! pe!ai$s !o !+e i$i!ial appli"a!io$ o& Food Fes! &o !+e pemi!s li"e$ses a$d a%!+oi!y !o opea!e. I! s+o%ld $o! be "o$s!%ed !o apply !o Food Fes!?s s%bseH%e$! appli"a!io$s. Food Fes! was able !o se"%e !+e pemi!s li"e$ses a$d a%!+oi!y !o opea!e w+e$ !+e lease "o$!a"! was e9e"%!ed. I!s &ail%e !o e$ew !+ese pemi!s li"e$ses a$d a%!+oi!y &o !+e s%""eedi$, yea does $o! +owe#e s%&&i"e !o de"lae !+e lease functus officio $o "a$ i! be "o$s!%ed as a$ %$&oesee$ e#e$! !o waa$! !+e appli"a!io$ o& A!i"le 4*K. Co$!a"!s o$"e pe&e"!ed ae bi$di$, be!wee$ !+e "o$!a"!i$, pa!ies. Obli,a!io$s aisi$, !+ee&om +a#e !+e &o"e o& law a$d s+o%ld be "omplied wi!+ i$ ,ood &ai!+. Food Fes! "a$$o! e$e,e &om !+e obli,a!io$s i! +as &eely ass%med w+e$ i! si,$ed !+e lease "o$!a"!. aniel . So vs. ood est Land, Inc. 7 ood est Land, Inc. vs. aniel . So, ".R. #os. $%<'+% $%<'2, April 2, +$. Compe$sa!io$Jse!Bo&&; eH%isi!es. T+e appli"able po#isio$s o& law ae A!i"les 4*K0 4*K' a$d 4*') o& !+e Ci#il Code o& !+e >+ilippi$es: A!. 4*K0. Compe$sa!io$ s+all !a2e pla"e w+e$ !wo peso$s i$ !+ei ow$ i,+! ae "edi!os a$d deb!os o& ea"+ o!+e. A!. 4*K'. I$ ode !+a! "ompe$sa!io$ may be pope i! is $e"essay: 346 T+a! ea"+ o$e o& !+e obli,os be bo%$d pi$"ipally a$d !+a! +e be a! !+e same !ime a pi$"ipal "edi!o o& !+e o!+e; 3*6 T+a! bo!+ deb!s "o$sis! i$ a s%m o& mo$ey o i& !+e !+i$,s d%e ae "o$s%mable !+ey be o& !+e same 2i$d a$d also o& !+e same H%ali!y i& !+e la!!e +as bee$ s!a!ed; 3(6 T+a! !+e !wo deb!s be d%e; 3<6 T+a! !+ey be liH%ida!ed a$d dema$dable; 356 T+a! o#e $ei!+e o& !+em !+ee be a$y e!e$!io$ o "o$!o#esy "omme$"ed by !+id peso$s a$d "omm%$i"a!ed i$ d%e !ime !o !+e deb!o. A!. 4*'). W+e$ all !+e eH%isi!es me$!io$ed i$ A!i"le 4*K' ae pese$! "ompe$sa!io$ !a2es e&&e"! by opea!io$ o& law a$d e9!i$,%is+es bo!+ deb!s !o !+e "o$"%e$! amo%$! e#e$ !+o%,+ !+e "edi!os a$d deb!os ae $o! awae o& !+e "ompe$sa!io$. ased o$ !+e &oe,oi$, i$ ode &o "ompe$sa!io$ !o be #alid !+e &i#e eH%isi!es me$!io$ed i$ !+e abo#eBH%o!ed A!i"le 4*K' s+o%ld be pese$! as i$ !+e "ase a! be$"+. Insular Invest(ent and rust !orporation vs. !apital 3ne ?quities !orp. and Planters evelop(ent Bank; G.R. =o. 40(()0 Apil *5 *)4* Obli,a!io$; wi!eBo&& $o! a$ e9!i$,%is+me$! o& obli,a!io$. T+e Co%! %les !+a! wi!i$,Bo&& a loa$ does $o! eH%a!e !o a "o$do$a!io$ o elease o& a deb! by !+e "edi!o. As a$ a""o%$!i$, s!a!e,y !+e %se o& wi!eBo&& is a !as2 !+a! "a$ +elp a "ompa$yismai$!ai$ a moe a""%a!e i$#e$!oy o&!o!+e o& i!s "%e$! I$ ,e$eal ba$2i$, pa"!i"e me!+od %sed w+e$ a$ a""o%$! is de!emi$ed be wo!+ %$"olle"!ible a$d a$ asse!s. %$"olle"!ible e9pe$se is e"oded i$ !+e !+e wi!eBo&& boo2s o& a""o%$!. I& i$ !+e &%!%e !+e deb! appeas !o be "olle"!ible as w+e$ !+e deb!o be"omes sol#e$! !+e$ !+e boo2s will be ad%s!ed !o e&le"! !+e amo%$! !o be "olle"!ed as a$ asse!. I$ !%$ i$"ome will be "edi!ed by !+e same amo%$! o& i$"ease i$ !+e a""o%$!s e"ei#able. Wi!eBo&& is $o! o$e o& !+e le,al ,o%$ds &o e9!i$,%is+i$, a$ obli,a!io$ %$de !+e Ci#il Code. I! is $o! a "ompomise o& liabili!y. =ei!+e is i! a "o$do$a!io$ si$"e i$ "o$do$a!io$ ,a!%i!y o$ !+e pa! o& !+e obli,ee a$d a""ep!a$"e by !+e obli,o ae eH%ied. I$ ma2i$, !+e wi!eBo&& o$ly !+e "edi!o !a2es a"!io$ by emo#i$, !+e %$"olle"!ible a""o%$! &om i!s boo2s e#e$ wi!+o%! !+e appo#al o pa!i"ipa!io$ o& !+e deb!o.
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Compe$sa!io$. T+e Ci#il Code po#ides !+a! "ompe$sa!io$ s+all !a2e pla"e w+e$ !wo peso$s i$ !+ei ow$ i,+! ae "edi!os a$d deb!os o& ea"+ o!+e. I$ ode &o "ompe$sa!io$ !o be pope i! is $e"essay !+a!: 3i6 ea"+ o$e o& !+e obli,os is bo%$d pi$"ipally a$d !+a! +e be a! !+e same !ime a pi$"ipal "edi!o o& !+e o!+e; 3ii6 bo!+ deb!s "o$sis! i$ a s%m o& mo$ey o i& !+e !+i$,s d%e ae "o$s%mable !+ey be o& !+e same 2i$d a$d also o& !+e same H%ali!y i& !+e la!!e +as bee$ s!a!ed; 3iii6 !+e !wo deb!s ae d%e: 3i#6 !+e deb!s ae liH%ida!ed a$d dema$dable; a$d 3#6 o#e $ei!+e o& !+em be a$y e!e$!io$ o "o$!o#esy "omme$"ed by !+id pa!ies a$d "omm%$i"a!ed i$ d%e !ime !o !+e deb!o. I$ !+is "ase pe!i!io$es &ailed !o popely dis"+a,e !+ei b%de$ !o s+ow !+a! !+e deb!s ae liH%ida!ed a$d dema$dable. Co$seH%e$!ly le,al "ompe$sa!io$ is i$appli"able. A "laim is liH%ida!ed w+e$ !+e amo%$! a$d !ime o& payme$! is &i9ed. I& a"2$owled,ed by !+e deb!o al!+o%,+ $o! i$ wi!i$, !+e "laim m%s! !ea!ed asis liH%ida!ed. W+e$ !+es%"+ de&e$da$! a$ %$liH%ida!ed se!s i! %p by &om way !+e o& "o%$!e"laim a$dbea %d,me$! e$deed liH%ida!i$, "laim i! w+o "a$ be+as "ompe$sa!ed a,ai$s!"laim !+e plai$!i&&?s "laim mome$! i! is liH%ida!ed by %d,me$!. Sel@yn . Lao, et al. vs. Special Plans, Inc., ".R. #o. $'*2-$, ;une +-, +$ . Compe$sa!io$; pa!ial se!Bo&&. U$de !+e "i"%ms!a$"es &ai$ess a$d easo$ di"!a!e !+a! we simply ode !+e se!Bo&& o& !+e pe!i!io$es? "o$!a"!%al liabili!ies !o!ali$, >5K5'**.4( a,ai$s! !+e epai "os! &o !+e de&e"!i#e ,%!!e pe,,ed a! >K4K5*<.)) lea#i$, !+e amo%$! o& >4<4)4.0K s!ill d%e &om !+e espo$de$!. S%ppo! i$ law &o !+is %li$, &o pa!ial le,al "ompe$sa!io$ po"eeds &om A!i"les 4*K0 4*K' 4*04 a$d 4*0( o& !+e Ci#il Code. I$ s+o! bo!+ pa!ies ae "edi!os a$d deb!os o& ea"+ o!+e al!+o%,+ i$ di&&ee$! amo%$!s !+a! ae aleady d%e a$d dema$dable. Spouses 0ictoriano chung and e))ie !hung vs. 4landay !onstruction, Inc.>".R. #o. $&'<%, 3cto)er $$, +$. =o#a!io$. A $o#a!io$ aises w+e$ !+ee is a s%bs!i!%!io$ o& a$ obli,a!io$ by a s%bseH%e$! o$e !+a! e9!i$,%is+es !+e &is! ei!+e by "+a$,i$, !+e obe"! o !+e pi$"ipal "o$di!io$s o by s%bs!i!%!i$, !+e peso$ o& !+e deb!o o by s%bo,a!i$, a !+id peso$ i$ !+e i,+!s o& !+e "edi!o. Fo a #alid $o#a!io$ !o !a2e pla"e !+ee m%s! be !+ee&oe: 3 a6 a pe#io%s #alid obli,a!io$; 3)6 a$ a,eeme$! o& !+e pa!ies !o ma2e a $ew "o$!a"!; 3 c6 a$ e9!i$,%is+me$! o& !+e old "o$!a"!; a$d 3d6 a #alid $ew "o$!a"!. I$ s+o! !+e $ew obli,a!io$ e9!i$,%is+es !+e pio a,eeme$! o$ly w+e$ !+e s%bs!i!%!io$ is %$eH%i#o"ally de"laed or !+e old a$d !+e $ew obli,a!io$s ae i$"ompa!ible o$ e#ey poi$!. A "ompomise o& a &i$al %d,me$! opea!es as a $o#a!io$ o& !+e %d,me$! obli,a!io$ %po$ "omplia$"e wi!+ ei!+e o& !+ese !wo "o$di!io$s. To be "lea $o#a!io$ is $o! pes%med. T+is mea$s !+a! !+e pa!ies !o a "o$!a"! s+o%ld e9pessly a,ee !o abo,a!e !+e old "o$!a"! i$ &a#o o& a $ew o$e. I$ !+e abse$"e o& !+e e9pess a,eeme$! !+e old a$d !+e $ew obli,a!io$s m%s! be i$"ompa!ible o$ e#ey poi$!. T+ee is i$"ompa!ibili!y w+e$ !+e !wo obli,a!io$s "a$$o! s!a$d !o,e!+e ea"+ o$e +a#i$, i!s i$depe$de$! e9is!e$"e. I& !+e !wo obli,a!io$s "a$$o! s!a$d !o,e!+e !+e la!!e obli,a!io$ $o#a!es !+e &is!. C+a$,es !+a! beed i$"ompa!ibili!y m%s! be esse$!ial i$ $a!%e a$d $o! meely a""ide$!al. T+e i$"ompa!ibili!y m%s! a&&e"! a$y o& !+e esse$!ial eleme$!s o& !+e obli,a!io$ s%"+ as i!s obe"! "a%se o pi$"ipal "o$di!io$s !+eeo&; o!+ewise !+e "+a$,e is meely modi&i"a!oy i$ $a!%e a$d i$s%&&i"ie$! !o e9!i$,%is+ !+e oi,i$al obli,a!io$. T+e e"eip! da!ed Feb%ay 5 4''* was o$ly !+e poo& o& Se#a$do?s payme$! o& +is obli,a!io$ as "o$&imed by !+e de"isio$ o& !+e RTC. I! did $o! es!ablis+ !+e $o#a!io$ o& +is a,eeme$! wi!+ !+e espo$de$!s. I$deed !+e Co%! +as %led !+a! a$ obli,a!io$ !o pay a s%m o& mo$ey is $o! $o#a!ed by a$ i$s!%me$! !+a! e9pessly e"o,$i-es !+e old o "+a$,es o$ly !+e !ems o& payme$! o adds o!+e obli,a!io$s $o! i$"ompa!ible wi!+ !+e old o$es o !+e $ew "o$!a"! meely s%ppleme$!s !+e old o$e. A $ew "o$!a"! !+a! is a mee ei!ea!io$ a"2$owled,me$! o a!i&i"a!io$ o& !+e old "o$!a"! wi!+ sli,+! modi&i"a!io$s o al!ea!io$s as !o !+e "a%se o obe"! o pi$"ipal "o$di!io$s "a$ s!a$d !o,e!+e wi!+ !+e &ome o$e a$d !+ee "a$ be $o i$"ompa!ibili!y be!wee$ !+em. Moeo#e a "edi!o?s a""ep!a$"e o& payme$! a&!e dema$d does $o! opea!e as a modi&i"a!io$ o& !+e oi,i$al "o$!a"!.
Las!ly !+eo&e9!e$sio$ o& peiod !+e ma!%i!y da!e didda!e $o!does "o$s!i!%!e a $o#a!io$ o& !+e pe#io%s a,eeme$!. se!!led !+a! a$ e9!e$sio$ !+e !em o o& !+e ma!%i!y $o! es%l! i$ $o#a!io$. 9eirs of Servando ranco vs.I!Sps.is0eronica anilo "on5ales; G.R. =o. 45'K)' %$e *K *)4*. =o#a!io$. T+ee ae !wo ways w+i"+ "o%ld i$di"a!e i$ &i$e !+e pese$"e o& $o#a!io$ a$d !+eeby pod%"e !+e e&&e"! o& e9!i$,%is+i$, a$ obli,a!io$ by a$o!+e w+i"+ s%bs!i!%!es !+e same. T+e &is! is w+e$ $o#a!io$ +as bee$ e9pli"i!ly s!a!ed a$d de"laed i$ %$eH%i#o"al !ems. T+e se"o$d is w+e$ !+e old a$d !+e $ew obli,a!io$s ae i$"ompa!ible o$ e#ey poi$!. T+e !es! o& i$"ompa!ibili!y is w+e!+e !+e !wo obli,a!io$s "a$ s!a$d !o,e!+e ea"+ o$e +a#i$, i!s i$depe$de$! e9is!e$"e. I& !+ey "a$$o! !+ey ae i$"ompa!ible a$d !+e la!!e obli,a!io$ $o#a!es !+e &is!. Coollaily "+a$,es !+a! beed i$"ompa!ibili!y m%s! be esse$!ial i$ $a!%e a$d $o! meely a""ide$!al. T+e i$"ompa!ibili!y m%s! !a2e pla"e i$ a$y o& !+e esse$!ial eleme$!s o& !+e obli a!io$ s%"+ as i!s ob e"! "a%se o i$"i al "o$di!io$s !+eeo& o!+ewise !+e "+a$ e wo%ld be meel modi&i"a!o i$
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@o%b!less RP I$s%a$"e is s%bo,a!ed !o !+e i,+!s o& !+e i$s%ed !o !+e e9!e$! o& !+e amo%$! i! paid !+e "o$si,$ee %$de !+e mai$e i$s%a$"e as po#ided %$de A!i"le **)K o& !+e Ci#il Code w+i"+ eads: ART. **)K. I& !+e plai$!i&&?s pope!y +as bee$ i$s%ed a$d +e +as e"ei#ed i$dem$i!y &om !+e i$s%a$"e "ompa$y &o !+e i$%y o loss aisi$, o%! o& !+e wo$, o bea"+ o& "o$!a"! "omplai$ed o& !+e i$s%a$"e "ompa$y s+all be s%bo,a!ed !o !+e i,+!s o& !+e i$s%ed a,ai$s! !+e wo$,Bdoe o !+e peso$ w+o +as #iola!ed !+e "o$!a"!. I& !+e amo%$! paid by !+e i$s%a$"e "ompa$y does $o! &%lly "o#e !+e i$%y o loss !+e a,,ie#ed pa!y s+all be e$!i!led !o e"o#e !+e de&i"ie$"y &om !+e peso$ "a%si$, !+e loss o i$%y. As s%bo,ee o& !+e i,+!s a$d i$!ees! o& !+e "o$si,$ee RP I$s%a$"e +as !+e i,+! !o see2 eimb%seme$! &om ei!+e Loadmas!es o Glodel o bo!+ &o bea"+ o& "o$!a"! a$dJo !o!. Load(asters !usto(s Services, Inc. vs. "lodel Brokerage !orporation
and R B Insurance !orporation> ".R. #o. $2-**', ;anuary $, +$$. Le,al s%bo,a!io$. T+e pese$! "ase e9empli&ies !+e "i"%ms!a$"e "o$!empla!ed %$de paa,ap+ * o& A!i"le 4()* o& !+e Ci#il Code w+i"+ po#ides: I! is pes%med !+a! !+ee is le,al s%bo,a!io$: 346 W+e$ a "edi!o pays a$o!+e "edi!o w+o is pe&eed e#e$ wi!+o%! !+e deb!o?s 2$owled,e; 3*6 W+e$ a !+id peso$ $o! i$!ees!ed i$ !+e obli,a!io$ pays wi!+ !+e e9pess o !a"i! appo#al o& !+e deb!o; 3(6 W+e$ e#e$ wi!+o%! !+e 2$owled,e o& !+e deb!o a peso$ i$!ees!ed i$ !+e &%l&illme$! o& !+e obli,a!io$ pays wi!+o%! pe%di"e !o !+e e&&e"!s o& "o$&%sio$ as !o !+e la!!e?s s+ae. Me!oba$2 was a !+id pa!y !o !+e Ce$!al a$2BRG a,eeme$! +ad $o i$!ees! e9"ep! as a "o$d%i! a$d was $o! le,ally a$sweable &o !+e IR@ loa$s. @espi!e !+is i! was Me!oba$2?s dema$d deposi! a""o%$! i$s!ead o& RG?s w+i"+ !+e Ce$!al a$2 po"eeded a,ai$s! o$ !+e ass%mp!io$ pe+aps !+a! !+is was !+e mos! "o$#e$ie$! mea$s o& e"o#ei$, !+e "a$"elled loa$s. T+a! Me!oba$2?s payme$! was i$#ol%$!aily made does $o! "+a$,e !+e eali!y !+a! i! was Me!oba$2 w+i"+ e&&e"!i#ely a$sweed &o RG?s obli,a!io$s. Was !+ee e9pess o !a"i! appo#al by RG o& !+e payme$! e$&o"ed a,ai$s! Me!oba$2 A&!e Me!oba$2 e"ei#ed !+e Ce$!al a$2?s debi! ad#i"es i$ =o#embe 4'K0 i! 3Me!oba$26 a""odi$,ly debi!ed !+e amo%$!s i! "o%ld &om RG?s spe"ial sa#i$,s a""o%$! wi!+o%! a$y obe"!io$ &om RG. RG?s >eside$! a$d Ma$a,e @. AH%iles Abella e#e$ wo!e Me!oba$2 o$ A%,%s! 4< 4'K' wi!+ poposals e,adi$, possible mea$s o& se!!li$, !+e amo%$!s debi!ed by Ce$!al a$2 &om Me!oba$2?s dema$d deposi! a""o%$!. T+ese i$s!a$"es ae all i$di"a!i#e o& RG?s appo#al o& Me!oba$2?s payme$! o& !+e IR@ loa$s. T+a! RG?s !a"i! appo#al "ame a&!e payme$! +ad bee$ made does $o! "omple!ely $e,a!e !+e le,al s%bo,a!io$ !+a! +ad !a2e$ pla"e. A!i"le 4()( o& !+e Ci#il Code s!a!es !+a! s%bo,a!io$ !a$s&es !o !+e peso$ s%bo,a!ed !+e "edi! wi!+ all !+e i,+!s !+ee!o appe!ai$i$, ei!+e a,ai$s! !+e deb!o o a,ai$s! !+id peso$s. As !+e e$!i!y a,ai$s! w+i"+ !+e "olle"!io$ was e$&o"ed Me!oba$2 was s%bo,a!ed !o !+e i,+!s o& Ce$!al a$2 a$d +as a "a%se o& a"!io$ !o e"o#e &om RG !+e amo%$!s i! paid !o !+e Ce$!al a$2 pl%s 4< pe a$$%m i$!ees!. /etropolitan Bank and rust !o(pany vs. Rural Bank of "erona, Inc., ".R. #o. $&--2, ;uly &, +$. =o#a!io$. =o#a!io$ m%s! be e9pessly "o$se$!ed !o. Moeo#e !+e "o$&li"!i$, i$!e$!io$ a$d a"!s o& !+e pa!ies %$des"oe !+e abse$"e o& a$y e9pess dis"los%e o "i"%ms!a$"es wi!+ w+i"+ !o ded%"e a "lea a$d %$eH%i#o"al i$!e$! by !+e pa!ies !o $o#a!e !+e old a,eeme$!. Land Bank of the Philippines vs. Alfredo 3ng, ".R. #o. $-2&&, #ove()er +*, +$. =o#a!io$. =o#a!io$ is !+e e9!i$,%is+me$! o& a$ obli,a!io$ by !+e s%bs!i!%!io$ o "+a$,e o& !+e obli,a!io$ by a s%bseH%e$! o$e w+i"+ e9!i$,%is+es o modi&ies !+e &is! ei!+e by "+a$,i$, !+e obe"! o pi$"ipal "o$di!io$s by s%bs!i!%!i$, a$o!+e i$ pla"e o& !+e deb!o o by s%bo,a!i$, a !+id peso$ i$ !+e i,+!s o& !+e "edi!o. I! is a %le !+a! $o#a!io$ by s%bs!i!%!io$ o& deb!o m%s! always be made wi!+ !+e "o$se$! o& !+e "edi!o. T+e "o$se$! o& !+e
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+is liabili!y !o pay espo$de$! !+e amo%$! o& >*4<))).)) as payme$! &o !+e ()) ba,s o& i"e. As we said $o#a!io$ is $e#e pes%med !+ee m%s! be a$ e9pess i$!e$!io$ !o $o#a!e. I$ &a"! w+e$ !+e Solid a$2 "+e"2 was deli#eed !o espo$de$! !+e same was also i$dosed by pe!i!io$e w+i"+ s+ows pe!i!io$e?s e"o,$i!io$ o& !+e e9is!i$, obli,a!io$ !o espo$de$! !o pay >*4<))).)) s%be"! o& !+e epla"ed >%de$!ial a$2 "+e"2. Moeo#e espo$de$!?s a""ep!a$"e o& !+e Solid a$2 "+e"2 did $o! es%l! !o a$y i$"ompa!ibili!y si$"e !+e !wo "+e"2s >%de$!ial a$d Solid a$2 "+e"2s wee pe"isely &o !+e p%pose o& payi$, !+e amo%$! o& >*4<))).)) i.e. !+e "edi! ob!ai$ed &om !+e p%"+ase o& !+e ()) ba,s o& i"e &om espo$de$!. I$deed !+ee was $o s%bs!a$!ial "+a$,e i$ !+e obe"! o pi$"ipal "o$di!io$ o& !+e obli,a!io$ o& pe!i!io$e as !+e i$dose o& !+e "+e"2 !o pay !+e amo%$! o& >*4<))).)). I! wo%ld appea !+a! espo$de$! a""ep!ed !+e Solid a$2 "+e"2 !o ,i#e pe!i!io$e !+e "+a$"e !o pay +e obli,a!io$. Ana(er Sala5ar vs. ;.=. Brothers /arketing !orporation> ".R. #o. $2$--%, 3cto)er +, +$. =o#a!io$; eH%ieme$!s; $o#a!io$ "a$$o! be pes%med. As a "i#il law "o$"ep! $o#a!io$ is !+e e9!i$,%is+me$! o& a$ obli,a!io$ by !+e s%bs!i!%!io$ o "+a$,e o& !+e obli,a!io$ by a s%bseH%e$! o$e w+i"+ !emi$a!es i! ei!+e by "+a$,i$, i!s obe"!s o pi$"ipal "o$di!io$s o by s%bs!i!%!i$, a $ew deb!o i$ pla"e o& !+e old o$e o by s%bo,a!i$, a !+id peso$ !o !+e i,+!s o& !+e "edi!o. =o#a!io$ may be e9!i$"!i#e o modi&i"a!oy. I! is e9!i$"!i#e w+e$ a$ old obli,a!io$ is !emi$a!ed by !+e "ea!io$ o& a $ew o$e !+a! !a2es !+e pla"e o& !+e &ome; i! is meely modi&i"a!oy w+e$ !+e old obli,a!io$ s%bsis!s !o !+e e9!e$! !+a! i! emai$s "ompa!ible wi!+ !+e ame$da!oy a,eeme$!. =o#a!io$ may ei!+e be e9pess w+e$ !+e $ew obli,a!io$ de"laes i$ %$eH%i#o"al !ems !+a! !+e old obli,a!io$ is e9!i$,%is+ed o implied w+e$ !+e $ew obli,a!io$ is o$ e#ey poi$! i$"ompa!ible wi!+ !+e old o$e. T+e !es! o& i$"ompa!ibili!y lies o$ w+e!+e !+e !wo obli,a!io$s "a$ s!a$d !o,e!+e ea"+ o$e wi!+ i!s ow$ i$depe$de$! e9is!e$"e. Fo $o#a!io$ as a mode o& e9!i$,%is+i$, o modi&yi$, a$ obli,a!io$ !o apply !+e &ollowi$, eH%isi!es m%s! "o$"%: 46
T+ee m%s! be a pe#io%s #alid obli,a!io$.
*6
T+e pa!ies "o$"e$ed m%s! a,ee !o a $ew "o$!a"!.
(6
T+e old "o$!a"! m%s! be e9!i$,%is+ed.
<6
T+ee m%s! be a #alid $ew "o$!a"!.
#ovatio non praesu(itur o $o#a!io$ is $e#e pes%med is a wellBse!!led pi$"iple. Co$seH%e$!ly !+a! w+i"+ aises &om a p%po!ed modi&i"a!io$ i$ !+e !ems a$d "o$di!io$s o& !+e obli,a!io$ m%s! be "lea a$d e9pess. O$ pe!i!io$es !+%s es!s !+e o$%s o& s+owi$, "lealy a$d %$eH%i#o"ally !+a! $o#a!io$ +as i$deed !a2e$ pla"e. I! +as o&!e$ bee$ said !+a! !+e mi$ds !+a! a,ee !o "o$!a"! "a$ a,ee !o $o#a!e. A$d !+e a,eeme$! o "o$se$! !o $o#a!e may well be i$&eed &om !+e a"!s o& a "edi!o si$"e #oli!io$ may as well be e9pessed by deeds as by wods. I$ !+e i$s!a$! "ase +owe#e !+e a"!s o& E>CI be&oe sim%l!a$eo%sly !o a$d a&!e i!s a""ep!a$"e o& payme$!s &om pe!i!io$es a,%e a,ai$s! !+e idea o& i!s +a#i$, a""eded o a"H%ies"ed !o pe!i!io$es? eH%es! &o a "+a$,e o& !+e !ems o& payme$!s o& !+e se"%ed loa$. Fa &om i!. T+%s a $o#a!io$ !+o%,+ a$ alle,ed implied "o$se$! by E>CI as po&&eed a$d a,%ed by pe!i!io$es "a$$o! be ,i#e$ impima!% by !+e Co%!. St. ;a(es !ollege of ParaKaque> ;ai(e . orres, represented )y his legal representative, ;a(es enley /. orres> and /yrna /. orres vs. ?quita)le P!I Bank, ".R. #o. $2-**$, August -, +$.
=o#a!io$. i$ i!s boad "o$"ep! may ei!+e e9!i$"!i#e o modi&i"a!oy. w+e$ a$ oldw+e$ obli,a!io$ is !emi$a!ed=o#a!io$ by !+e "ea!io$ o& a $ew obli,a!io$ !+a! be !a2es !+e pla"e o& !+e &ome;I!i!isise9!i$"!i#e meely modi&i"a!oy !+e old obli,a!io$ s%bsis!s !o !+e e9!e$! !+a! i! emai$s "ompa!ible wi!+ !+e ame$da!oy a,eeme$!. A$ e9!i$"!i#e $o#a!io$ es%l!s ei!+e by "+a$,i$, !+e obe"! o pi$"ipal "o$di!io$s 3obe"!i#e o eal6 o by s%bs!i!%!i$, !+e peso$ o& !+e deb!o o s%bo,a!i$, a !+id peso$ i$ !+e i,+!s o& !+e "edi!o 3s%be"!i#e o peso$al6. U$de !+is mode $o#a!io$ wo%ld +a#e ,al f,$&!o$s 1 o$e !o e9!i$,%is+ a$ e9is!i$, obli,a!io$ !+e o!+e !o s%bs!i!%!e a $ew o$e i$ i!s pla"e 1 eH%ii$, a "o$&l%9 o& &o% esse$!ial eH%isi!es: 346 a pe#io%s #alid obli,a!io$; 3*6 an agree(ent of all parties concerned to a ne@ contract ; 3(6 !+e e9!i$,%is+me$! o& !+e old obli,a!io$; a$d 3<6 !+e bi!+ o& a #alid $ew obli,a!io$. T+e se"o$d eH%isi!e is la"2i$, i$ !+is "ase. =o#a!io$ pes%pposes $o! o$ly !+e e9!i$,%is+me$! o modi&i"a!io$ o& a$ e9is!i$,
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Co$!a"!; $o#a!io$. =o#a!io$ is !+e e9!i$,%is+me$! o& a$ obli,a!io$ by !+e s%bs!i!%!io$ o "+a$,e o& !+e obli,a!io$ by a s%bseH%e$! o$e w+i"+ e9!i$,%is+es o modi&ies !+e &is! ei!+e by "+a$,i$, !+e obe"! o pi$"ipal "o$di!io$s o by s%bs!i!%!i$, a$o!+e i$ pla"e o& !+e deb!o o by s%bo,a!i$, a !+id peso$ i$ !+e i,+!s o& !+e "edi!o. =o#a!io$ may be e9!i$"!i#e o modi&i"a!oy. I! is e9!i$"!i#e w+e$ a$ old obli,a!io$ is !emi$a!ed by !+e "ea!io$ o& a $ew o$e !+a! !a2es !+e pla"e o& !+e &ome; i! is meely modi&i"a!oy w+e$ !+e old obli,a!io$ s%bsis!s !o !+e e9!e$! !+a! i! emai$s "ompa!ible wi!+ !+e ame$da!oy a,eeme$!. =o#a!io$ may ei!+e be e9pess w+e$ !+e $ew obli,a!io$ de"laes i$ %$eH%i#o"al !ems !+a! !+e old obli,a!io$ is e9!i$,%is+ed; o implied w+e$ !+e $ew obli,a!io$ is o$ e#ey poi$! i$"ompa!ible wi!+ !+e old o$e. T+e !es! o& i$"ompa!ibili!y is w+e!+e !+e !wo obli,a!io$s "a$ s!a$d !o,e!+e ea"+ o$e wi!+ i!s ow$ i$depe$de$! e9is!e$"e. I$ !+e i$s!a$! "ase !+e Co%! &i$ds !+a! !+e >a!ial Compomise A,eeme$! e$!eed i$!o by pe!i!io$es a$d La$d a$2 "o$s!i!%!es as a$ implied modi&i"a!oy $o#a!io$ o ame$dme$! !o !+e Loa$JLi$e A,eeme$!. As s%"+ a$y po#isio$ i$ !+e Loa$JLi$e A,eeme$! i$"o$sis!e$! wi!+ !+e po#isio$s o& !+e >a!ial Compomise A,eeme$! is deemed ame$ded o wai#ed by !+e pa!ies. I$ o!+e wods by e$!ei$, i$!o !+e >a!ial Compomise A,eeme$! a$d a,eei$, !o /s%spe$d all a"!io$s7 La$d a$2 e&&e"!i#ely wai#ed all i!s i,+!s e,adi$, M>C =os. )))* a$d )))<. T+is $e"essaily i$"l%des i!s i,+! !o assi,$ %$de !+e Loa$JLi$e A,eeme$!. Adriatico !onsortiu(, Inc. Pri(ary Realty !orp., and Benito !u84y8"a( vs. Land Bank of the Philippines, ".R. #o. $%2%<%, ece()er +<, +-. Co$!a"!s; s!a,es. E#ey "o$!a"! +as !+e eleme$!s o& 346 "o$se$! o& !+e "o$!a"!i$, pa!ies; 3*6 obe"! "e!ai$ w+i"+ is !+e s%be"! ma!!e o& !+e "o$!a"!; a$d 3(6 "a%se o& !+e obli,a!io$ w+i"+ is es!ablis+ed. A "o$!a"! is pe&e"!ed by mee "o$se$! w+i"+ is ma$i&es!ed by !+e mee!i$, o& !+e o&&e a$d !+e a""ep!a$"e %po$ !+e !+i$, a$d !+e "a%se w+i"+ ae !o "o$s!i!%!e !+e "o$!a"!. Ge$eally "o$!a"!s %$de,o !+ee dis!i$"! s!a,es: 346 pepaa!io$ o $e,o!ia!io$; 3*6 pe&e"!io$; a$d 3(6 "o$s%mma!io$. =e,o!ia!io$ be,i$s &om !+e !ime !+e pospe"!i#e "o$!a"!i$, pa!ies ma$i&es! !+ei i$!ees! i$ !+e "o$!a"! a$d e$ds a! !+e mome$! o& a,eeme$! o& !+e pa!ies. T+e pe&e"!io$ o bi!+ o& !+e "o$!a"! !a2es pla"e w+e$ !+e pa!ies a,ee %po$ !+e esse$!ial eleme$!s o& !+e "o$!a"!. T+e las! s!a,e is !+e "o$s%mma!io$ o& !+e "o$!a"! w+ee !+e pa!ies &%l&ill o pe&om !+e !ems !+ey a,eed o$ "%lmi$a!i$, i$ i!s e9!i$,%is+me$!. International reeport raders, Inc. vs. an5as Intercontinental, Inc.; ".R. #o. $%$%<<, ;anuary +', +$$ . Co$!a"!s; eleme$!s; s!a,es. E#ey "o$!a"! +as !+e &ollowi$, esse$!ial eleme$!s: 3i6 "o$se$! 3ii6 obe"! "e!ai$ a$d 3iii6 "a%se. Co$se$! +as bee$ de&i$ed as !+e "o$"%e$"e o& !+e wills o& !+e "o$!a"!i$, pa!ies wi!+ espe"! !o !+e obe"! a$d "a%se w+i"+ s+all "o$s!i!%!e !+e "o$!a"!. I$ ,e$eal "o$!a"!s %$de,o !+ee dis!i$"! s!a,es !o wi!: $e,o!ia!io$ pe&e"!io$ o bi!+ a$d "o$s%mma!io$. N"*o&!a&!o$ be,i$s &om !+e !ime !+e pospe"!i#e "o$!a"!i$, pa!ies ma$i&es! !+ei i$!ees! i$ !+e "o$!a"! a$d e$ds a! !+e mome$! o& !+ei a,eeme$!. P"#f"&!o$ o bi!+ o& !+e "o$!a"! !a2es pla"e w+e$ !+e pa!ies a,ee %po$ !+e esse$!ial eleme$!s o& !+e "o$!a"! i.e. "o$se$! obe"! a$d pi"e. Co$s,++a&!o$ o""%s w+e$ !+e pa!ies &%l&ill o pe&om !+e !ems a,eed %po$ i$ !+e "o$!a"! "%lmi$a!i$, i$ !+e e9!i$,%is+me$! !+eeo&. T+e bi!+ o !+e pe&e"!io$ o& !+e "o$!a"! w+i"+ is !+e "%9 o& !+e pese$! "o$!o#esy e&es !o !+a! mome$! i$ !+e li&e o& a "o$!a"! w+e$ !+ee is &i$ally a "o$"%e$"e o& !+e wills o& !+e "o$!a"!i$, pa!ies wi!+ espe"! !o !+e obe"! a$d !+e "a%se o& !+e "o$!a"!. Sargasso !onstruction evelop(ent !orporation 7 Pick Shovel, Inc.7Atlantic ?rectors, Inc.7 ;oint 0enture vs. Philippine Ports Authority, ".R. #o. $2&<, ;uly &, +$. Co$!a"!; bi$di$, e&&e"!. A "o$si,$ee al!+o%,+ $o! a si,$a!oy !o !+e "o$!a"! o& "aia,e be!wee$ !+e s+ippe a$d !+e "aie be"omes a 3*6 pa!y !+e "o$!a"! by easo$o&o&!+e ei!+e 346ladi$, !+e ela!io$s+ip a,e$"y be!wee$ a$do&!+e s+ippeJ "o$si,$o; !+e!o%$eH%i#o"al a""ep!a$"e bill o& deli#eed !oo&!+e "o$si,$ee wi!+!+e &%ll"o$si,$ee 2$owled,e i!s "o$!e$!s o 3(6 a#ailme$! o& !+e s!ip%la!io$ po% a%!%i i.e. w+e$ !+e "o$si,$ee a !+id peso$ dema$ds be&oe !+e "aie !+e &%l&illme$! o& !+e s!ip%la!io$ made by !+e "o$si,$oJs+ippe i$ !+e "o$si,$ee?s &a#o spe"i&i"ally !+e deli#ey o& !+e ,oodsJ"a,oes s+ipped. /o !o(pany, Inc. vs. Shin Brokerage !orporation, ".R. #o. $2+%++, ece()er $%, +-. Co$!a"!s; A%!o$omy o& >a!ies. U$less !+e !ems o& a "o$!a"! ae a,ai$s! !+e law moals ,ood "%s!oms a$d p%bli" poli"y s%"+ "o$!a"! is law be!wee$ !+e pa!ies a$d i!s !ems bi$d !+em. I$ elsan Realty evelop(ent !orporation v. !o((on@ealth of Australia !+e Co%! e,aded as #alid a$d bi$di$, a po#isio$ i$ !+e lease "o$!a"! !+a! allowed !+e lessee !o peB!emi$a!e !+e same w+e$ &ie dama,ed !+e leased b%ildi$, e$dei$, i! %$i$+abi!able o %$s%i!able &o li#i$,. I$ !+is "ase paa,ap+ III o&
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e"o$s!%"!io$. I$ !+e la!!e "ase i& !+e leased pemises be"ome %$!e$a$!able ei!+e pa!y may dema$d &o !+e es"issio$ o& !+is "o$!a"! a$d i$ s%"+ "ase !+e deposi! e&eed !o i$ paa,ap+ III s+all be e!%$ed !o !+e LESSEE immedia!ely.7 elicidad . /artin, et al. vs. BS Bank Philippines, Inc., et al. ".R. #o. $2*'<+ ".R. #o. $2*%*, ;une $', +$. Co$!a"!s; A%!o$omy o& >a!ies; Co$!a"! o& Ad+esio$. A!i"le 4() o& !+e Ci#il Code po#ides !+a! !+e /"o$!a"!i$, pa!ies may es!ablis+ s%"+ s!ip%la!io$s "la%ses !ems a$d "o$di!io$s as !+ey may deem "o$#e$ie$! po#ided !+ey ae $o! "o$!ay !o law moals ,ood "%s!oms p%bli" ode o p%bli" poli"y.7 I$ !+e pese$! "ase !+e sales i$#oi"es e9pessly s!ip%la!ed !+e payme$! o& i$!ees! a$d a!!o$ey?s &ees i$ "ase o& o#ed%e a""o%$!s a$d "olle"!io$ s%i!s !o wi!: /I$!ees! a! *< pe a$$%m is !o be "+a,ed !o all a""o%$!s o#ed%e pl%s *5 addi!io$al o$ %$paid i$#oi"e &o a!!o$ey?s &ees aside &om "o%! "os! !+e pa!ies e9pessly s%bmi! !+emsel#es !o !+e #e$%e o& !+e "o%!s i$ Ri-al i$ "ase o& le,al po"eedi$,.7 T+e sales i$#oi"es ae i$ !+e $a!%e o& "o$!a"!s o& ad+esio$. 7T+e "o%! +as epea!edly +eld !+a! "o$!a"!s o& ad+esio$ ae as bi$di$, as odi$ay "o$!a"!s. T+ose w+o ad+ee !o !+e "o$!a"! ae i$ eali!y &ee !o ee"! i! e$!iely a$d i& !+ey ad+ee !+ey ,i#e !+ei "o$se$!. I! is !%e !+a! i$ some o""asio$s !+e Co%! s!%"2 dow$ s%"+ "o$!a"!s as #oid w+e$ !+e wea2e pa!y is imposed %po$ i$ deali$, wi!+ !+e domi$a$! pa!y a$d is ed%"ed !o !+e al!e$a!i#e o& a""ep!i$, !+e "o$!a"! o lea#i$, i! "omple!ely depi#ed o& !+e oppo!%$i!y !o ba,ai$ o$ eH%al &oo!i$,.7 Co$sidei$, !+a! pe!i!io$e is $o! a small !ime "o$s!%"!io$ "ompa$y +a#i$, s%"+ "o$s!%"!io$ poe"!s as !+e MRT III a$d !+e Ma%ba$ >owe >la$! /pe!i!io$e is pes%med !o +a#e &%ll 2$owled,e a$d !o +a#e a"!ed wi!+ d%e "ae o a! !+e #ey leas! !o +a#e bee$ awae o& !+e !ems a$d "o$di!io$s o& !+e "o$!a"!. >e!i!io$e was &ee !o "o$!a"! !+e se#i"es o& a$o!+e s%pplie i& espo$de$!?s !ems wee $o! a""ep!able7. y "o$!a"!i$, wi!+ espo$de$! &o !+e s%pply o& !+e ei$&o"i$, s!eel bas a$d $o! i$!eposi$, a$y obe"!io$ !o !+e s!ip%la!io$s i$ !+e sales i$#oi"e pe!i!io$e did $o! o$ly bi$d i!sel& !o pay !+e s!a!ed selli$, pi"e i! also bo%$d i!sel& !o pay 346 i$!ees! o& *< pe a$$%m o$ o#ed%e a""o%$!s a$d 3*6 *5 o& !+e %$paid i$#oi"e &o a!!o$ey?s &ees. T+%s !+e lowe "o%!s did $o! e i$ %si$, !+e i$#oi"es as basis &o !+e awad o& i$!ees!. Asian !onstruction and evelop(ent !orporation vs. !athay Pacific Steel !orporation, ".R. #o. $'2-*+, ;une +-, +$. Co$!a"!s; O&&e a$d A""ep!a$"e. A$ o&&e is a %$ila!eal poposi!io$ made by o$e pa!y !o a$o!+e &o !+e "eleba!io$ o& a "o$!a"!. Fo a$ o&&e !o be "e!ai$ a "o$!a"! m%s! "ome i$!o e9is!e$"e by !+e mee a""ep!a$"e o& !+e o&&eee wi!+o%! a$y &%!+e a"! o$ !+e o&&eo?s pa!. T+e o&&e m%s! be de&i$i!e "omple!e a$d i$!e$!io$al. I$ Spouses Paderes v. !ourt of Appeals !+e Co%! +eld !+a! /T+ee is a$ o&&e? i$ !+e "o$!e9! o& A!i"le 4(4' o$ly i& !+e "o$!a"! "a$ "ome i$!o e9is!e$"e by !+e mee a""ep!a$"e o& !+e o&&eee wi!+o%! a$y &%!+e a"! o$ !+e pa! o& !+e o&&eo. 8e$"e !+e o&&e? m%s! be de&i$i!e "omple!e a$d i$!e$!io$al.7 I$ !+e pese$! "ase !+e o&&e is $o! "e!ai$: 3i6 !+e *4 A%,%s! *))4 memoa$d%m "lealy s!a!es !+a! /M=LSM Ma$a,eme$! o$ !&s !s#"&!o$ is +eeby o&&ei$, !+e said ealy e!ieme$! po,am !o i!s s!a&&7; 3ii6 appli"a!io$s &o !+e ER> wee &owaded !o !+e +ead o&&i"e &o appo#al a$d &%!+e a"!s o$ !+e o&&eo?s pa! wee $e"essay be&oe !+e "o$!a"! "o%ld "ome i$!o e9is!e$"e; a$d 3iii6 !+e *4 A%,%s! *))4 memoa$d%m "lealy s!a!es Noea$ Ai?s i$!e$!io$ w+i"+ was /!o pe#e$! &%!+e losses.7 3Emp+asis !+e Co%!?s.6 Noea$ Ai "o%ld $o! +a#e i$!e$ded !o mi$is!eially appo#e all appli"a!io$s &o !+e ER>. orean Air !o., Ltd and Suk yoo i( vs. Adelina A.S. =uson, ".R. #o. $2<'-, ;une $', +$ Co$!a"!s; ,o#e$me$! "o$!a"!s; w+e$ pe&e"!ed. A ,o#e$me$! o p%bli" "o$!a"! +as bee$ de&i$ed as a "o$!a"! e$!eed i$!o by s!a!e o&&i"es a"!i$, o$ be+al& o& !+e s!a!e a$d i$ w+i"+ !+e e$!ie people o& !+e s!a!e ae die"!ly i$!ees!ed. I! ela!es w+olly !o ma!!e o& p%bli" "o$"e$ a$d a&&e"!s pi#a!e i,+!s o$ly so &a as !+e s!a!%!e "o$&es s%"+ i,+!s w+e$ i!s po#isio$s ae "aied o%! by !+e o&&i"e !o w+om i! is "o$&ided !o pe&om. A ,o#e$me$! "o$!a"! is esse$!ially simila !o a pi#a!e "o$!a"! "o$!empla!ed %$de !+e Ci#il Code. T+e le,al eH%isi!es o& "o$se$! o& !+e "o$!a"!i$, pa!ies a$ obe"! "e!ai$ w+i"+ is !+e s%be"! ma!!e a$d "a%se o "o$sidea!io$ o& !+e obli,a!io$ m%s! li2ewise "o$"%. O!+ewise !+ee is $o ,o#e$me$! "o$!a"! !o spea2 o&. O$ !+e ma!!e o& e$!ei$, i$!o $e,o!ia!ed "o$!a"!s by ,o#e$me$!Bow$ed a$d "o$!olled "opoa!io$s !+e po#isio$s o& e9is!i$, laws ae "ys!al "lea i$ eH%ii$, !+e ,o#e$i$, boad?s appo#al !+eeo&. >e!i!io$e $ei!+e disp%!es $o admi!s !+e appli"a!io$ o& !+e &oe,oi$, s!a!%!oy po#isio$s b%! i$sis!s $o$e!+eless !+a! !+e =o!i"e o& Awad i!sel& aleady embodies a pe&e"!ed "o$!a"! +a#i$, passed !+e $e,o!ia!io$ s!a,e despi!e !+e "lea abse$"e !+eeo$ o& a "o$di!io$ eH%ii$, !+e pio appo#al o& espo$de$!?s +i,+e a%!+oi!y.
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Co$!a"! o& ad+esio$. A "o$!a"! o& ad+esio$ is de&i$ed as o$e i$ w+i"+ o$e o& !+e pa!ies imposes a eadyBmade &om o& "o$!a"! w+i"+ !+e o!+e pa!y may a""ep! o ee"! b%! w+i"+ !+e la!!e "a$$o! modi&y. O$e pa!y pepaes !+e s!ip%la!io$ i$ !+e "o$!a"! w+ile !+e o!+e pa!y meely a&&i9es +is si,$a!%e o +is ad+esio$? !+ee!o ,i#i$, $o oom &o $e,o!ia!io$ a$d depi#i$, !+e la!!e o& !+e oppo!%$i!y !o ba,ai$ o$ eH%al &oo!i$,. A "o$!a"! o& ad+esio$ pes%pposes !+a! !+e pa!y ad+ei$, !o !+e "o$!a"! is a wea2e pa!y. T+a! "a$$o! be said o& pe!i!io$e. 8e is a lawye. 8e is deemed 2$owled,eable o& !+e le,al impli"a!io$s o& !+e "o$!a"! !+a! +e is si,$i$,. I! m%s! be bo$e i$ mi$d +owe#e !+a! "o$!a"!s o& ad+esio$ ae $o! i$#alid per se . Co$!a"!s o& ad+esio$ w+ee o$e pa!y imposes a eadyBmade &om o& "o$!a"! o$ !+e o!+e ae $o! e$!iely po+ibi!ed. T+e o$e w+o ad+ees !o !+e "o$!a"! is i$ eali!y &ee !o ee"! i! e$!iely; i& +e ad+ees +e ,i#es +is "o$se$!. Aniceto ". Saludo, ;r. vs. Security Bank !orporation> ".R. #o. $%**$, 3cto)er $<, +$. Co$!a"!s; Co$sidea!io$; AdeH%a"y o& >i"e. Wi!+o%! die"!ly sayi$, so !+e !ial "o%! +eld !+a! !+e pe!i!io$es "a$$o! s%e %po$ !+e oal sale si$"e i$ i!s ow$ wods: /Dpe!i!io$es +a#e $o! paid i$ &%ll Ama$do Gabiel S. o +is es!a!e so !+a! !+e sale !a$sa"!io$ be!wee$ Ama$do Gabiel S. a$d Dpe!i!io$es D+as $o adeH%a!e "o$sidea!io$.7 T+e !ial "o%!?s pos!%e is pa!e$!ly &lawed. Fo s!a!es !+ey eH%a!ed i$"omple!e payme$! o& !+e p%"+ase pi"e wi!+ i$adeH%a"y o& pi"e o w+a! passes as lesio$ w+e$ bo!+ ae di&&ee$! "i#il law "o$"ep!s wi!+ di&&ei$, le,al "o$seH%e$"es !+e &is! bei$, a ,o%$d !o es"i$d a$ o!+ewise #alid a$d e$&o"eable "o$!a"!. >e"ei#ed i$adeH%a"y o& pi"e o$ !+e o!+e +a$d is $o! a s%&&i"ie$! ,o%$d &o se!!i$, aside a sale &eely e$!eed i$!o sa#e pe+aps w+e$ !+e i$adeH%a"y is s+o"2i$, !o !+e "o$s"ie$"e. Anthony 3rduKa, et al. vs. ?duardo ;. uente)ella, et al., ".R. #o. $2'%*$, ;une +-, +$. Co$!a"!s; la"2 o& adeH%a!e "o$sidea!io$. A "o$!a"! is pes%med !o be s%ppo!ed by "a%se o "o$sidea!io$. T+e pes%mp!io$ !+a! a "o$!a"! +as s%&&i"ie$! "o$sidea!io$ "a$$o! be o#e!+ow$ by a mee asse!io$ !+a! i! +as $o$e. To o#e"ome !+e pes%mp!io$ !+e alle,ed la"2 o& "o$sidea!io$ m%s! be s+ow$ by pepo$dea$"e o& e#ide$"e. T+e b%de$ !o po#e la"2 o& "o$sidea!io$ es!s %po$ w+oe#e alle,es i! w+i"+ i$ !+e pese$! "ase is espo$de$! a$d espo$de$! &ailed !o do so. Fom +e !es!imo$y a$d +e asse!io$s i$ !+e pleadi$,s i! is "lea !+a! !+e pomissoy $o!e was iss%ed &o a "a%se o "o$sidea!io$ w+i"+ a! !+e #ey leas! was pe!i!io$e?s si,$a!%e o$ !+e do"%me$!. I! may #ey well be a,%ed !+a! i& s%"+ was !+e "o$sidea!io$ i! was i$adeH%a!e. =o$e!+eless e#e$ i& !+e "o$sidea!io$ is i$adeH%a!e !+e "o$!a"! wo%ld $o! be i$#alida!ed %$less !+ee +as bee$ &a%d mis!a2e o %$d%e i$&l%e$"e. =o$e o& !+ese ,o%$ds +ad bee$ po#e$ pese$! i$ !+is "ase. !ar(ela Bro)io /angahas vs. ?ufrocina A. Bro)io> ".R. #o. $%<%&+, 3cto)er +, +$. Co$!a"!s; i$s%&&i"ie$! "o$sidea!io$. T+e S%peme Co%! %p+eld !+e &i$di$, o& !+e Co%! o& Appeals !+a! !+ee was i$s%&&i"ie$! o& "o$sidea!io$ a$d !+a! w+ile i$adeH%a"y o& pi"e does $o! i$#alida!e a "o$!a"! !+e said %le is $o! wi!+o%! a$ e9"ep!io$. As po#ided i$ !+e Ci#il Code: A!. 4(55. E9"ep! i$ "ases spe"i&ied by law lesio$ o i$adeH%a"y o& "a%se s+all $o! i$#alida!e a "o$!a"! %$less !+ee +as bee$ &a%d mis!a2e o %$d%e i$&l%e$"e. T+e Co%! o& Appeals was "lea as !o i!s mai$ easo$ &o i$#alida!i$, !+e "o$!a"!s i$ H%es!io$ 1 !+ee was &a%d. T+e i$adeH%a"y o& pi"e was meely o$e o& !+e "i"%ms!a$"es %po$ w+i"+ !+e Co%! o& Appeals was able !o &i$d !+e e9is!e$"e o& &a%d a$d was $o! !+e mai$ "a%se &o !+e i$#alida!io$ o& !+e s%be"! "o$!a"!s. I! m%s! be $o!ed !+a! !+e pope!y i$ H%es!io$ s%be"! o& !+e Co$!a"! !o Sell &o !+e s%m o& ><<4)(*.)) is a la$d wi!+ a "o$!ai$ed aea o& moe o less O$e T+o%sa$d =i$e 8%$ded a$d O$e 34')46 sH. m. wi!+ a !woBs!oey eside$!ial b%ildi$, lo"a!ed i$ >asay Ci!y. I$ "laimi$, !+a! !+e said pi"e o& !+e pope!y is $o! i$adeH%a!e pe!i!io$es s!a!ed !+a! !+e payme$! o& Elme Ta$ !o peB!emi$a!e 8ayai?s obli,a!io$ amo%$!i$, !o T+ee Millio$ O$e 8%$ded T+i!yBFo% T+o%sa$d =i$e 8%$ded Twe$!yBO$e >esos 3>(4(<'*4.))6 as pa! o& !+e "o$sidea!io$ paid &o !+e pope!y s+o%ld be i$"l%ded. 8owe#e as "oe"!ly a,%ed by espo$de$! Siea Ga$de !+e amo!i-a!io$s paid by Elme Ta$ !o Ma$p+il was &o a loa$ i$"%ed by 8ayai a$d $o! by espo$de$! Siea Ga$de; !+%s a$y payme$! o& !+e amo!i-a!io$s o$ !+e loa$ o& 8ayai "a$$o! be "o$sideed as pa! o& !+e "o$sidea!io$ &o !+e sale o& !+e la$d ow$ed by espo$de$! Siea Ga$de. I! is !+e$ sa&e !o de"lae !+a! espo$de$! Siea Ga$de did $o! be$e&i! &om !+e loa$ o &om i!s peB!emi$a!io$. Moeo#e !+e e"ods ae bee&! o& a$y e#ide$"e !o s%ppo! !+e "laim o& pe!i!io$es !+a! !+e s%m o& mo$ey paid by Elme Ta$ o$ be+al& o& 8ayai was pa! o& !+e
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!orporation and Rosvi)on Realty !orporation vs. Sierra "rande Realty !orporation, /anphil Invest(ent !orporation, Renan 0. Santos and Patricio /a(aril, ".R. #o. $$-%&2, ;uly +%, +$. Co$!a"!s; law be!wee$ !+e pa!ies. I$ "o$!a"!%al ela!io$s !+e law allows !+e pa!ies leeway a$d "o$sides !+ei a,eeme$! as !+e law be!wee$ !+em. Co$!a"! s!ip%la!io$s !+a! ae $o! "o$!ay !o law moals ,ood "%s!oms p%bli" ode o p%bli" poli"y s+all be bi$di$, a$d s+o%ld be "omplied wi!+ i$ ,ood &ai!+. =o pa!y is pemi!!ed !o "+a$,e +is mi$d o disa#ow a$d ,o ba"2 %po$ +is ow$ a"!s o !o po"eed "o$!ay !+ee!o !o !+e pe%di"e o& !+e o!+e pa!y. Spouses 0ictoriano !hung and e))ie !hung vs. 4landay !onstruction, Inc.> ".R. #o. $&'<%, 3cto)er $$, +$. Co$!a"!s; l%mpBs%m "o$!a"!s. A!i"le 4K*< o& !+e Ci#il Code ,o#e$s !+e e"o#ey o& addi!io$al "os!s i$ "o$!a"!s &o a s!ip%la!ed pi"e 3s%"+ as &i9ed l%mpBs%m "o$!a"!s6 a$d !+e i$"ease i$ pi"e &o addi!io$al wo2 d%e !o "+a$,e i$ pla$s a$d spe"i&i"a!io$s. S%"+ added "os! "a$ o$ly be allowed %po$ !+e: 3a6 wi!!e$ a%!+oi!y &om !+e de#elope o poe"! ow$e odei$, o allowi$, !+e wi!!e$ "+a$,es i$ wo2 a$d 3b6 wi!!e$ a,eeme$! o& pa!ies wi!+ e,ad !o !+e i$"ease i$ pi"e o "os! d%e !o !+e "+a$,e i$ wo2 o desi,$ modi&i"a!io$. Complia$"e wi!+ !+ese !wo eH%isi!es is a "o$di!io$ pe"ede$! &o !+e e"o#ey. T+e abse$"e o& o$e o !+e o!+e "o$di!io$ bas !+e e"o#ey o& addi!io$al "os!s. =ei!+e !+e a%!+oi!y &o !+e "+a$,es made $o !+e addi!io$al pi"e !o be paid !+ee&o may be po#ed by a$y o!+e e#ide$"e. Spouses 0ictoriano !hung and e))ie !hung vs. 4landay !onstruction, Inc.> ".R. #o. $&'<%, 3cto)er $$, +$. Co$!a"!; #alidi!y o& biddi$, %les. I$ oi$i$, !+e bid &o s%,a impo!a!io$ !+e s%,a "opoa!io$s ae deemed !o +a#e asse$!ed !o !+e iddi$, R%les i$"l%di$, !+e &o&ei!%e po#isio$ %$de paa,ap+ G.4. T+e iddi$, R%les bi$d !+e s%,a "opoa!io$s. T+e la!!e "a$$o! ely o$ !+e lame e9"%se !+a! !+ey ae $o! awae o& !+e &o&ei!%e po#isio$. A! !+e !ial Teesi!a Ta$ !es!i&ied !+a! !+e iddi$, R%les wee d%ly p%blis+ed i$ a $ewspape o& ,e$eal "i"%la!io$. i"e$!e Ce$-o$ a s%,a impo!e w+o pa!i"ipa!ed i$ !+e biddi$, &o !+e ( d !a$"+e !es!i&ied !+a! +e a!!e$ded !+e peBbid "o$&ee$"e w+ee !+e iddi$, R%les wee dis"%ssed a$d "opies o& !+e same wee dis!ib%!ed !o all !+e biddes. T+e iddi$, R%les passed !+o%,+ a "o$s%l!a!i#e po"ess a"!i#ely pa!i"ipa!ed by #aio%s ,o#e$me$! a,e$"ies a$d !+ei "o%$!epa! i$ !+e pi#a!e se"!o: !+e @epa!me$! o& A,i"%l!%e !+e =a!io$al E"o$omi" @e#elopme$! A%!+oi!y !+e @epa!me$! o& Tade a$d I$d%s!y !+e @epa!me$! o& Fi$a$"e !+e S%,a Re,%la!oy Admi$is!a!io$ a$d a epese$!a!i#e ea"+ &om !+e s%,a pla$!es? ,o%p a$d !+e s%,a milles? ,o%p. We &i$d $o!+i$, i$ !+e &o&ei!%e po#isio$ o& !+e iddi$, R%les !+a! is "o$!ay !o law moals ,ood "%s!oms p%bli" ode o p%bli" poli"y. O$ !+e "o$!ay !+e &o&ei!%e po#isio$ &%lly s%ppo!s ,o#e$me$! e&&o!s !o aid !+e "o%$!y?s aili$, s%,a i$d%s!y. Co$#esio$ &ees i$"l%di$, !+ose !+a! ae &o&ei!ed %$de paa,ap+ G.4 o& !+e iddi$, R%les ae a%!oma!i"ally emi!!ed !o !+e %ea% o& Teas%y a$d ,o die"!ly !o !+e A,i"%l!%al Compe!i!i#e$ess E$+a$"eme$! F%$d. South Pacific Sugar !orporation, et al. v. !ourt of Appeals and Sugar Regulatory Ad(inistration G.R. =o. 40)<*. Feb%ay ' *)44. Co$!a"!s; H%a$!%m me%i!. U$de !+e pi$"iple o& quantu( (eruit, a "o$!a"!o is allowed !o e"o#e !+e easo$able #al%e o& !+e !+i$, o se#i"es e$deed despi!e !+e la"2 o& a wi!!e$ "o$!a"! i$ ode !o a#oid %$%s! e$i"+me$!. Ouantu( (eruit mea$s !+a! i$ a$ a"!io$ &o wo2 a$d labo payme$! s+all be made i$ s%"+ amo%$! as !+e plai$!i&& easo$ably dese#es. To de$y payme$! &o a b%ildi$, almos! "omple!ed a$d aleady o""%pied wo%ld be !o pemi! %$%s! e$i"+me$! a! !+e e9pe$se o& !+e "o$!a"!o. 9eirs of Ra(on !. "aite, et al. vs. he Pla5a, Inc. and "4 Insurance !orporation> ".R. #o. $22'%&, ;anuary +', +$$ . Go#e$me$! "o$!a"!s; obli,a!io$ !o pay s%pplie o "o$!a"!o e#e$ %$de a$ ille,al "o$!a"! o$ basis o& H%a$!%m me%i!. I$ odei$, !+e payme$! o& !+e obli,a!io$ d%e espo$de$! o$ a quantu( (eruit basis, !+e Co%! o& Appeals "oe"!ly elied o$ Royal
rust !orporation v. !3A, ?slao v. !3A, /elchor v. !3A ?P" !onstruction !o(pany v. 0igilar, a$d epart(ent of 9ealth v. !.0. !anchela Associates, Architects. All !+ese "ases i$#ol#ed ,o#e$me$! poe"!s %$de!a2e$ i$ #iola!io$ o& !+e ele#a$! laws %les a$d e,%la!io$s "o#ei$, p%bli" biddi$, b%d,e! appopia!io$s a$d elease o& &%$ds &o !+e poe"!s. Co$sis!e$!ly i$ !+ese "ases !+is Co%! +as +eld !+a! !+e "o$!a"!s wee #oid &o &aili$, !o mee! !+e eH%ieme$!s ma$da!ed by law; p%bli" i$!ees! a$d eH%i!y +owe#e di"!a!e !+a! !+e "o$!a"!o s+o%ld be "ompe$sa!ed &o se#i"es e$deed a$d wo2 do$e. Spe"i&i"ally !.0. !anchela Associates is simila !o !+e "ase a! ba i$ !+a! !+e "o$!a"!s i$#ol#ed i$ bo!+ "ases &ailed !o "omply wi!+ !+e ele#a$! po#isio$s o& >eside$!ial @e"ee =o. 4<<5 a$d !+e Re#ised Admi$is!a!i#e Code o& 4'0K. =e#e!+eless !+e ille,ali!y o& !+e s%be"! A,eeme$!s po"eeds i! beas emp+asis &om a$ e9pess de"laa!io$ o po+ibi!io$ by law $o! &om a$y i$!i$si" ille,ali!y. As s%"+ !+e A,eeme$!s ae $o! ille,al per se a$d !+e pa!y "laimi$, !+ee%$de may e"o#e w+a! +ad bee$ paid o deli#eed.
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Co$!a"!; de!emi$a"y o& obe"!. T+a! !+e kasunduan did $o! spe"i&y !+e !e"+$i"al bo%$daies o& !+e pope!y did $o! e$de !+e sale a $%lli!y. T+e eH%ieme$! !+a! a sale m%s! +a#e &o i!s obe"! a de!emi$a!e !+i$, is sa!is&ied as lo$, as a! !+e !ime !+e "o$!a"! is e$!eed i$!o !+e obe"! o& !+e sale is "apable o& bei$, made de!emi$a!e wi!+o%! !+e $e"essi!y o& a $ew o &%!+e a,eeme$! be!wee$ !+e pa!ies. As po!io$ o& !+e kasunduan s+ows !+ee is $o do%b! !+a! !+e obe"! o& !+e sale is de!emi$a!e. o(ingo !ara)eo v. Spouses ingco, ".R. #o. $-%+<, April *, +$$. Co$!a"!s; i$!epe!a!io$; !wo "o$!a"!s o$ same ma!!e "o$sideed a si$,le a,eeme$!. >a!ies +ad e9e"%!ed !wo "o$!a"!s 3a kasunduan a$d a kasunduan sa )ilihan ng lupa6 !+e impo! o& w+i"+ !+e lowe "o%!s +ad ead i$ di&&ei$, ways depe$di$, o$ w+i"+ do"%me$! !+e "o%! !+o%,+! +ad bee$ e9e"%!ed &is!. T+e S%peme Co%! opi$ed !+a! !+e iss%e o& w+i"+ o& !+e !wo "o$!a"!s was &is! e9e"%!ed by !+e pa!ies is imma!eial !o !+e esol%!io$ o& !+is "ase. I$ !+e &is! pla"e bo!+ "o$!a"!s wee e9e"%!ed a$d $o!ai-ed o$ !+e same day @e"embe 4''(. Moe impo!a$!ly bo!+ "o$!a"!s e#e$ i$depe$de$! o& !+e !ime o& !+ei e9e"%!io$ b%! !a2e$ !o,e!+e "lealy spell o%! i$ &%ll !+e espe"!i#e i,+!s a$d obli,a!io$s o& !+e pa!ies. A eadi$, o& !+e kasunduan sa )ilihan ng lupa a$d !+e kasunduan wo%ld eadily e#eal !+a! payme$! o& !+e p%"+ase pi"e does $o! depe$d o$ !+e s%#ey o& !+e pope!y. I$ o!+e wods !+e p%"+ase pi"e s+o%ld be paid w+e!+e o $o! !+e pope!y is s%#eyed. T+e s%#ey o& !+e pope!y is impo!a$! o$ly i$so&a as !+e i,+! o& espo$de$! !o !+e ed%"!io$ o& !+e p%"+ase pi"e is "o$"e$ed. O$ !+e o!+e +a$d !+e s%#ey o& !+e pope!y !o de!emi$e !+e me!es a$d bo%$ds o& !+e 4K(4 sH. m. po!io$ !+a! is e9"l%ded &om !+e "o$!a"! as well as !+e po!io$s "o#eed by !+e kasunduan w+i"+ will be s%be"! !o ed%"!io$ o& !+e p%"+ase pi"e is also $o! "o$di!io$ed o$ !+e payme$! o& a$y i$s!allme$!. >e!i!io$e simply +as !o do i!. I$ &a"! %$de !+e kasunduan sa )ilihan ng lupa !+e s%#ey s+o%ld be do$e be&oe !+e da!e o& !+e las! i$s!allme$!. 8e$"e !+e s%#ey "o%ld +a#e bee$ do$e a$y!ime a&!e !+e e9e"%!io$ o& !+e a,eeme$!. T+e kasunduan sa )ilihan ng lupa a$d !+e kasunduan s+o%ld bo!+ be ,i#e$ e&&e"! a!+e !+a$ be de"laed "o$&li"!i$, i& !+ee is a way o& e"o$"ili$, !+em. >e!i!io$e a$d espo$de$! wo%ld $o! +a#e e$!eed i$!o ei!+e o& !+e a,eeme$!s i& !+ey did $o! i$!e$d !o be bo%$d o ,o#e$ed by !+em. I$deed !a2e$ !o,e!+e !+e !wo a,eeme$!s a"!%ally "o$s!i!%!e a si$,le "o$!a"! pe!ai$i$, !o !+e sale o& a la$d !o espo$de$! by pe!i!io$e. T+ei s!ip%la!io$s m%s! !+ee&oe be i$!epe!ed !o,e!+e a!!ib%!i$, !o !+e do%b!&%l o$es !+a! se$se !+a! may es%l! &om all o& !+em !a2e$ oi$!ly. T+ei pope "o$s!%"!io$ m%s! be o$e !+a! ,i#es e&&e"! !o all. 0alentin /ovido su)stituted )y /arginito /ovido vs. Luisa Reyes Pastor, ".R. #o. $2++2-, e)ruary $$, +$ Co$!a"!s; i$!epe!a!io$; ,e$eal #es%s spe"i&i" !ems. I$ !+is "o$$e"!io$ !+e kasunduan sa )ilihan ng lupa "o$!ai$s !+e ,e$eal !ems a$d "o$di!io$s o& !+e a,eeme$! o& !+e pa!ies. O$ !+e o!+e +a$d !+e kasunduan e&es !o a pa!i"%la o spe"i&i" ma!!e i.e. !+a! po!io$ o& !+e la$d !+a! is !a#esed by a =apo"o powe li$e. As !+e kasunduan pe!ai$s !o a spe"ial aea o& !+e a,eeme$! i! "o$s!i!%!es a$ e9"ep!io$ !o !+e ,e$eal po#isio$s o& !+e kasunduan sa )ilihan ng lupa, pa!i"%laly o$ !+e p%"+ase pi"e &o !+a! po!io$. Speciali)us derogat generali)us 0alentin /ovido su)stituted )y /arginito /ovido vs. Luisa Reyes Pastor,n)sp>".R. #o. $2++2-, e)ruary $$, +$. Co$!a"!; i$!epe!a!io$. T+ee is $o!+i$, i$ !+e s%be"! E9!a%di"ial Se!!leme$! !o i$di"a!e a$y e9pess s!ip%la!io$ &o pe!i!io$e a$d espo$de$!s !o "o$!i$%e wi!+ !+ei s%pposed "oBow$es+ip o& !+e "o$!es!ed lo!. O$ !+e "o$!ay a plai$ eadi$, o& !+e po#isio$s o& !+e E9!a%di"ial Se!!leme$! wo%ld $o! i$ a$y way s%ppo! pe!i!io$e?s "o$!e$!io$ !+a! i! was +is a$d +is sibli$,?s i$!e$!io$ !o b%y !+e s%be"! pope!y &om !+e a$2 a$d "o$!i$%e w+a! !+ey belie#ed !o be "oBow$es+ip !+eeo&. I! is a "adi$al %le i$ !+e i$!epe!a!io$ o& "o$!a"!s !+a! !+e i$!e$!io$ o& !+e pa!ies s+all be a""oded pimodial "o$sidea!io$. I! is !+e d%!y o& !+e "o%!s !o pla"e a pa"!i"al a$d ealis!i" "o$s!%"!io$ %po$ i! ,i#i$, d%e "o$sidea!io$ !o !+e "o$!e9! i$ w+i"+ i! is $e,o!ia!ed a$d !+e p%pose w+i"+ i! is i$!e$ded !o se#e. S%"+ i$!e$!io$ is de!emi$ed &om !+e e9pess !ems o& !+ei a,eeme$! as well as !+ei "o$!empoa$eo%s a$d s%bseH%e$! a"!s. Abs%d a$d illo,i"al i$!epe!a!io$s s+o%ld also be a#oided. >e!i!io$e?s "o$!e$!io$ !+a! +e a$d +is sibli$,s i$!e$ded !o "o$!i$%e !+ei s%pposed "oBow$es+ip o& !+e s%be"! pope!y "o$!adi"!s !+e po#isio$s o& !+e s%be"! E9!a%di"ial Se!!leme$! w+ee !+ey "lealy ma$i&es!ed !+ei i$!e$!io$ o& +a#i$, !+e s%be"! pope!y di#ided o pa!i!io$ed by assi,$i$, !o ea"+ o& !+e pe!i!io$e a$d espo$de$!s a spe"i&i" 4J( po!io$ o& !+e same. >a!i!io$ "alls &o !+e se,e,a!io$ a$d "o$#eya$"e o& a de!emi$a!e po!io$ o& !+e pope!y ow$ed i$ "ommo$. I! see2s a se#ea$"e o& !+e i$di#id%al i$!ees!s o& ea"+ "oBow$e #es!i$, i$ ea"+ o& !+em a sole es!a!e i$ a spe"i&i" pope!y a$d ,i#i$, ea"+ o$e a i,+! !o e$oy +is es!a!e wi!+o%! s%pe#isio$ o i$!e&ee$"e &om !+e o!+e. I$ o!+e wods !+e p%pose o& pa!i!io$ is !o p%! a$ e$d !o "oBow$es+ip a$ obe"!i#e w+i"+ $e,a!es pe!i!io$e?s "laims i$ !+e pese$! "ase. !elestino Balus vs. Saturnino Balus and Leonarda Balus vda. e !alunod, ".R. #o. $'%-2, ;anuary $&, +$. Co$!a"!; i$!epe!a!io$. A "ompomise is a "o$!a"! w+eeby !+e pa!ies by ma2i$, e"ipo"al "o$"essio$s a#oid a li!i,a!io$ o p%! a$ e$d !o o$e aleady "omme$"ed. I! is a$ a,eeme$! i$!e$ded !o !emi$a!e a pe$di$, s%i! by ma2i$, e"ipo"al "o$"essio$s.
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w+ole. Adriatico !onsortiu(, Inc. Pri(ary Realty !orp., and Benito !u84y8"a( vs. Land Bank of the Philippines, ".R. #o. $%2%<%, ece()er +<, +-. Co$!a"!s; es"issible; pes%mp!io$ o& &a%d i$ sale by deb!o; appli"a!io$ !o mo!,a,e o& pope!y. T+e pes%mp!io$ o& &a%d es!ablis+ed %$de A!. 4(0K does $o! apply !o e,is!eed la$ds IF /!+e %d,me$! o a!!a"+me$! made is $o! also e,is!eed.7 I$ !+is "ase pio !o !+e a$$o!a!io$ o& !+e REM o$ Feb%ay *( 4''0 SC was able !o s%""ess&%lly a"H%ie a wi! o& pelimi$ay a!!a"+me$! i$ i!s &a#o a,ai$s! !+e spo%ses Lee o$ a$%ay () 4''0 i$ a "ase &o a s%m o& mo$ey &o $o$payme$! o& i!s obli,a!io$. a$,2o2 a$2 alle,es !+a! be"a%se o& !+is !+e pes%mp!io$ o& &a%d %$de A!. 4(0K o& !+e Ci#il Code applies. %! w+ile a %d,me$! was made a,ai$s! !+e spo%ses Lee i$ &a#o o& SC o$ a$%ay () 4''0 !+is +owe#e was $o! a$$o!a!ed o$ !+e !i!les o& !+e s%be"! pope!ies. I$ &a"! !+ee is $o s+owi$, !+a! !+e %d,me$! +as e#e bee$ a$$o!a!ed o$ !+e !i!les o& !+e s%be"! pope!ies. Co$sidei$, !+a! !+e ealie SC %d,me$! o a!!a"+me$! was $o! a$d i$ &a"! $e#e was a$$o!a!ed o$ !+e !i!les o& !+e s%be"! A$!ipolo pope!ies pio !o !+e e9e"%!io$ o& !+e REM !+e pes%mp!io$ o& &a%d %$de A!. 4(0K o& !+e Code "lealy "a$$o! apply. Also e#e$ ass%mi$, A!i"le 4(0K o& !+e Ci#il Code applies &a%d is pes%med o$ly i$ alie$a!io$s by o$eo%s !i!le o& a peso$ a,ai$s! w+om a %d,me$! o a!!a"+me$! +as bee$ iss%ed. T+e !em alie$a!io$ "o$$o!es !+e /!a$s&e o& !+e pope!y a$d possessio$ o& la$ds !e$eme$!s o o!+e !+i$,s &om o$e peso$ !o a$o!+e.7 T+is !em is /pa!i"%laly applied !o absol%!e "o$#eya$"es o& eal pope!y7 a$d m%s! i$#ol#e a /"omple!e !a$s&e &om o$e peso$ !o a$o!+e.7 A mo!,a,e does $o! "o$!empla!e a !a$s&e o a$ absol%!e "o$#eya$"e o& a eal pope!y. I! is /a$ i$!ees! i$ la$d "ea!ed by a wi!!e$ i$s!%me$! po#idi$, se"%i!y &o !+e pe&oma$"e o& a d%!y o !+e payme$! o& a deb!.7 W+e$ a deb!o mo!,a,es +is pope!y +e /meely s%be"!s i! !o a lie$ b%! ow$es+ip !+eeo& is $o! pa!ed wi!+.7 I! is meely a lie$ !+a! $ei!+e "ea!es a !i!le $o a$ es!a!e. I! is !+ee&oe "e!ai$ly $o! !+e alie$a!io$ by o$eo%s !i!le !+a! is "o$!empla!ed i$ A!. 4(0K w+ee &a%d is !o be pes%med. Fi$ally a "ae&%l eadi$, o& A!. 4(0K o& !+e Code #isBB#is i!s A!. 4(05 wo%ld plai$ly s+ow !+a! !+e pes%mp!io$ o& &a%d i$ "ase o& alie$a!io$s by o$eo%s !i!le o$ly applies !o !+e peso$ w+o made s%"+ alie$a!io$ a$d a,ai$s! w+om some %d,me$! +as bee$ e$deed i$ a$y i$s!a$"e o some wi! o& a!!a"+me$! +as bee$ iss%ed. A !+id peso$ is $o! a$d s+o%ld $o! be a%!oma!i"ally pes%med !o be i$ &a%d o i$ "oll%sio$ wi!+ !+e %d,me$! deb!o. I$ allowi$, es"issio$ i$ "ase o& a$ alie$a!io$ by o$eo%s !i!le !+e !+id peso$ w+o e"ei#ed !+e pope!y "o$#eyed s+o%ld li2ewise be a pa!y !o !+e &a%d. As "lai&ied by A!. 4(053*6 o& !+e Code so lo$, as !+e peso$ w+o is i$ le,al possessio$ o& !+e pope!y did $o! a"! i$ bad &ai!+ es"issio$ "a$$o! !a2e pla"e. T+%s i$ all i$s!a$"es as !o !+e !+id peso$ i$ le,al possessio$ o& !+e H%es!io$ed pope!y ,ood &ai!+ is pes%med. A""odi$,ly i! is %po$ !+e peso$ w+o alle,es bad &ai!+ o &a%d !+a! es!s !+e b%de$ o& poo&. Asia!%s! bei$, a !+id peso$ i$ ,ood &ai!+ s+o%ld $o! be a%!oma!i"ally pes%med !o +a#e a"!ed &a%d%le$!ly by !+e mee e9e"%!io$ o& !+e REM o#e !+e s%be"! A$!ipolo pope!ies !+ee bei$, $o e#ide$"e o& &a%d o bad &ai!+. Sa(uel 4. Lee, et al. v. Bangkok Bank Pu)lic !o(pany, Li(ited> G.R. =o. 4K((<'. Feb%ay ' *)44. Co$!a"!s; mea$i$, o& /bad,es o& &a%d7; odi$ay mea$i$, #es%s A!i"le 4)* mea$i$,. >e!i!io$es "laim !+a! !+e Co%! o& Appeals mis%sed !+e !em )adges of fraud i$ ea"+i$, i!s de"isio$. A""odi$, !o !+em A!i"le 4)* %po$ w+i"+ !+e !em )adges of fraud e&es !o is $o! appli"able be"a%se !+e said a!i"le e&es !o a sale wi!+ a i,+! !o ep%"+ase w+eeas !+e s%be"! i$#alida!ed "o$!a"!s wee absol%!e sales. T+ey "i!ed a "ase w+ee !+is Co%! po$o%$"ed !+a! bad,es o& &a%d is a "i"%ms!a$"e i$ A!i"le 4)* o& !+e Ci#il Code w+i"+ i& pese$! i$ a$y ,i#e$ !a$sa"!io$ ,i#es ise !o !+e pes%mp!io$ !+a! i! is $o! a sale b%! a$ eH%i!able mo!,a,e. T+%s a""odi$, !o pe!i!io$es !+e CA "o$&%sed A!i"le 4)* 346 wi!+ !+a! o& A!i"le 4
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!+ose "o$di!io$s w+i"+ +a#e pi$"ipally mo#ed o$e o bo!+ pa!ies !o e$!e !+e "o$!a"!. !ornelia /. 9ernande5, su)stituted )y Lourdes 9. !astillo v. !ecilio . 9ernande5, ".R. #o. $&%&2', /arch -, +$$. Co$!a"!s; #oidable. Co$!a"!s ae #oidable w+ee "o$se$! !+ee!o is ,i#e$ !+o%,+ mis!a2e #iole$"e i$!imida!io$ %$d%e i$&l%e$"e o &a%d. I$ de!emi$i$, w+e!+e "o$se$! is #i!ia!ed by a$y o& !+ese "i"%ms!a$"es "o%!s ae ,i#e$ a wide la!i!%de i$ wei,+i$, !+e &a"!s o "i"%ms!a$"es i$ a ,i#e$ "ase a$d i$ de"idi$, i$ &a#o o& w+a! !+ey belie#e a"!%ally o""%ed "o$sidei$, !+e a,e p+ysi"al i$&imi!y i$!elli,e$"e ela!io$s+ip a$d "o$d%"! o& !+e pa!ies a! !+e !ime o& !+e e9e"%!io$ o& !+e "o$!a"! a$d s%bseH%e$! !+ee!o iespe"!i#e o& w+e!+e !+e "o$!a"! is i$ a p%bli" o pi#a!e wi!i$,. =ow+ee is i! alle,ed !+a! mis!a2e #iole$"e &a%d o i$!imida!io$ a!!e$ded !+e e9e"%!io$ o& !+e pomissoy $o!e. S!ill espo$de$! i$sis!s !+a! s+e was /&o"ed7 i$!o si,$i$, !+e pomissoy $o!e be"a%se pe!i!io$e wo%ld $o! si,$ !+e do"%me$! eH%ied by !+e IR. I$ o$e "ase !+e Co%! 1 i$ "+aa"!ei-i$, a simila a,%me$! by espo$de$!s !+eei$ 1 +eld !+a! s%"+ alle,a!io$ is !a$!amo%$! !o sayi$, !+a! !+e o!+e pa!y e9e!ed %$d%e i$&l%e$"e %po$ !+em. 8owe#e !+e Co%! said !+a! !+e &a"! !+a! espo$de$!s wee /&o"ed7 !o si,$ !+e do"%me$!s does $o! amo%$! !o #i!ia!ed "o$se$!. T+ee is %$d%e i$&l%e$"e w+e$ a peso$ !a2es impope ad#a$!a,e o& +is powe o#e !+e will o& a$o!+e depi#i$, !+e la!!e o& a easo$able &eedom o& "+oi"e. Fo %$d%e i$&l%e$"e !o be pese$! !+e i$&l%e$"e e9e!ed m%s! +a#e so o#epoweed o s%b%,a!ed !+e mi$d o& a "o$!a"!i$, pa!y as !o des!oy +is &ee a,e$"y ma2i$, +im e9pess !+e will o& a$o!+e a!+e !+a$ +is ow$. Respo$de$! may +a#e despea!ely $eeded pe!i!io$e?s si,$a!%e o$ !+e @eed b%! !+ee is $o s+owi$, !+a! s+e was depi#ed o& &ee a,e$"y w+e$ s+e si,$ed !+e pomissoy $o!e. ei$, &o"ed i$!o a si!%a!io$ does $o! amo%$! !o #i!ia!ed "o$se$! w+ee i! is $o! s+ow$ !+a! !+e pa!y is depi#ed o& &ee will a$d "+oi"e. Respo$de$! s!ill +ad a "+oi"e: s+e "o%ld +a#e e&%sed !o e9e"%!e !+e pomissoy $o!e a$d eso!ed !o %di"ial mea$s !o ob!ai$ pe!i!io$e?s si,$a!%e. I$s!ead espo$de$! "+ose !o e9e"%!e !+e pomissoy $o!e !o ob!ai$ pe!i!io$e?s si,$a!%e !+eeby a,eei$, !o pay !+e amo%$! dema$ded by pe!i!io$e. T+e &a"! !+a! espo$de$! may +a#e &el! "ompelled %$de !+e "i"%ms!a$"es !o e9e"%!e !+e pomissoy $o!e will $o! $e,a!e !+e #ol%$!ai$ess o& !+e a"!. As i,+!ly obse#ed by !+e !ial "o%! !+e e9e"%!io$ o& !+e pomissoy $o!e i$ !+e amo%$! o& >))))).)) was i$ &a"! !+e pod%"! o& a $e,o!ia!io$ be!wee$ !+e pa!ies. Co$!ay !o !+e CA?s &i$di$,s !+e si!%a!io$ did $o! amo%$! !o i$!imida!io$ !+a! #i!ia!ed "o$se$!. T+ee is i$!imida!io$ w+e$ o$e o& !+e "o$!a"!i$, pa!ies is "ompelled !o ,i#e +is "o$se$! by a easo$able a$d wellB,o%$ded &ea o& a$ immi$e$! a$d ,a#e e#il %po$ +is peso$ o pope!y o %po$ !+e peso$ o pope!y o& +is spo%se des"e$da$!s o as"e$da$!s. Ce!ai$ly !+e payme$! o& pe$al!ies &o delayed payme$! o& !a9es wo%ld $o! H%ali&y as a /easo$able a$d wellB,o%$ded &ea o& a$ immi$e$! a$d ,a#e e#il.7 We oi$ !+e RTC i$ +oldi$, !+a! "o%!s will $o! se! aside "o$!a"!s meely be"a%se soli"i!a!io$ impo!%$i!y a,%me$! pes%asio$ o appeal !o a&&e"!io$ was %sed !o ob!ai$ !+e "o$se$! o& !+e o!+e pa!y. I$&l%e$"e ob!ai$ed by pes%asio$ o a,%me$! o by appeal !o a&&e"!io$ is $o! po+ibi!ed ei!+e i$ law o moals a$d is $o! ob$o9io%s e#e$ i$ "o%!s o& eH%i!y. !ar(ela Bro)io /angahas vs. ?ufrocina A. Bro)io> ".R. #o. $%<%&+, 3cto)er +, +$. Co$!a"!s; mis!a2e; #oidable "o$!a"!. Fo mis!a2e as !o !+e H%ali&i"a!io$ o& o$e o& !+e pa!ies !o #i!ia!e "o$se$! !wo eH%isi!es m%s! "o$"%: 4.
!+e mis!a2e m%s! be ei!+e wi!+ e,ad !o !+e ide$!i!y o wi!+ e,ad !o !+e H%ali&i"a!io$ o& o$e o& !+e "o$!a"!i$, pa!ies;
a$d *. !+e ide$!i!y o H%ali&i"a!io$ m%s! +a#e bee$ !+e pi$"ipal "o$sidea!io$ &o !+e "eleba!io$ o& !+e "o$!a"!. he Ro(an !atholic !hurch vs. Pante; G.R. =o. 4K<440 Apil 44 *)4*. Co$!a"!; eleme$! o& "o$se$!; "a%sal &a%d. I$ ode !+a! &a%d may #i!ia!e "o$se$! !o a "o$!a"! i! m%s! be !+e "a%sal 3 dolo causante6 $o! meely !+e i$"ide$!al 3 dolo incidente6 i$d%"eme$! !o !+e ma2i$, o& !+e "o$!a"!. Addi!io$ally !+e &a%d m%s! be seio%s. I$ !+is "ase "a%sal &a%d $e"essay !o %s!i&y !+e a$$%lme$! o& !+e "o$!a"! o& sale be!wee$ !+e pa!ies was abse$!. I! is "lea &om !+e e"ods !+a! pe!i!io$es a,eed !o sell !+ei pope!y !o !+e b%yes. T+e pe!i!io$es? belie& !+a! !+e &a%d employed by !+e b%yes was /aleady opea!io$al a! !+e !ime o& !+e pe&e"!io$ o& !+e "o$!a"! o& sale7 is i$"oe"!. T+e %yes?
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o& !+e mi$ds as !o !+e obe"! o& !+e sale as well as !+e "o$sidea!io$ !+ee&o. Spouses !ar(en ongson and ;ose ongson vs. ?(ergency Pa@nshop Bula, Inc. et al., ".R. #o. $'2%2*, ;anuary $&, +$. Co$!a"!; #oidable. Co$!a"!s w+ee "o$se$! is ,i#e$ !+o%,+ &a%d ae #oidable o a$$%llable. T+ese ae $o! #oid a) initio si$"e #oidable o a$%llable "o$!a"!s ae e9is!e$! #alid a$d bi$di$, al!+o%,+ !+ey "a$ be a$$%lled be"a%se o& wa$! o& "apa"i!y o !+e #i!ia!ed "o$se$! o& o$e o& !+e pa!ies. 8owe#e be&oe s%"+ a$$%lme$! !+ey ae "o$sideed e&&e"!i#e a$d obli,a!oy be!wee$ pa!ies. As !+e "omplai$!Bi$Bi$!e#e$!io$ s%bs!a$!ially alle,ed !+a! !+e "o$!a"! was #oidable !+e &o%Byea pes"ip!i#e peiod %$de A!. 4('4 o& !+e =ew Ci#il Code will apply. F>8C +owe#e "o$!e$ds !+a! !+e &o%Byea pes"ip!i#e peiod s+o%ld be e"2o$ed &om *< Feb%ay 4'0 !+e da!e w+e$ &ome >eside$! Ma"os le&! !+e "o%$!y as i! was o$ly !+e$ !+a! !+e !+ea! a$d i$!imida!io$ a,ai$s! !+e Lope-es "eased. T+is a,%me$! is %$"o$#i$"i$,. ased o$ F>8C?s >e!i!io$ &o Re#iew a$d i!s Complai$!Bi$BI$!e#e$!io$ !+e ,o%$d elied %po$ by pe!i!io$e is &a%d. 8ee &om !+e !ime !+e H%es!io$ed sale !a$sa"!io$ o$ *< May 4'0< !oo2 pla"e F>8C did $o! de$y !+a! i! +ad a"!%al 2$owled,e o& !+e same. Simply pe!i!io$e was &%lly awae o& !+e sale o& !+e >CI s+aes !o TMEE. @espi!e all !+is 2$owled,e pe!i!io$e did $o! H%es!io$ !+e said sale &om i!s i$"ep!io$ a$d some !ime !+eea&!e. I! was o$ly a&!e &o% yeas a$d se#e$ mo$!+s +ad lapsed &ollowi$, !+e 2$owled,e o dis"o#ey o& !+e alle,ed &a%d%le$! sale !+a! pe!i!io$e assailed !+e same. y !+e$ i! was !oo la!e &o pe!i!io$e !o bese! !+e same !a$sa"!io$ si$"e !+e pes"ip!i#e peiod +ad aleady "ome i$!o play. irst Philippine 9olding !orporation vs. rans /iddle ?ast MPhils.N ?quities Inc., ".R. #o. $2-&&. ece()er *, +-. S!a!%!e o& Fa%ds. U$de !+e %le o$ !+e S!a!%!e o& Fa%ds as e9pessed i$ A!i"le 4<)( o& !+e Ci#il Code a "o$!a"! &o !+e sale o a"H%isi!io$ o& eal pope!y s+all be %$e$&o"eable %$less !+e same o some $o!e o& !+e "o$!a"! be i$ wi!i$, a$d s%bs"ibed by !+e pa!y "+a,ed. S%be"! !o de&i$ed e9"ep!io$s e#ide$"e o& !+e a,eeme$! "a$$o! be e"ei#ed wi!+o%! !+e wi!i$, o se"o$day e#ide$"e o& i!s "o$!e$!s. MCIAA?s i$#o"a!io$ o& !+e S!a!%!e o& Fa%ds is mispla"ed pimaily be"a%se !+e s!a!%!e applies o$ly !o e9e"%!oy a$d $o! !o "omple!ed e9e"%!ed o pa!ially "o$s%mma!ed "o$!a"!s. A$aly-i$, !+e si!%a!io$ o& !+e "ases a! ba !+ee "a$ be $o seio%s obe"!io$ !o !+e poposi!io$ !+a! !+e a,eeme$! pa"2a,e be!wee$ !+e ,o#e$me$! a$d !+e pi#a!e lo! ow$es was aleady pa!ially pe&omed by !+e ,o#e$me$! !+o%,+ !+e a"H%isi!io$ o& !+e lo!s &o !+e e9pa$sio$ o& !+e La+%, aipo!. T+e pa!ies +owe#e &ailed !o a""omplis+ !+e moe impo!a$! "o$di!io$ i$ !+e CFI de"isio$ de"eei$, !+e e9popia!io$ o& !+e lo!s li!i,a!ed %po$: !+e e9pa$sio$ o& !+e La+%, Aipo!. T+e poe"!11!+e p%bli" p%pose be+i$d !+e &o"ed pope!y !a2i$,11was i$ &a"! $e#e p%s%ed a$d as a "o$seH%e$"e !+e lo!s e9popia!ed wee aba$do$ed. e !+a! as i! may !+e !wo ,o%ps o& la$dow$es "a$ i$ a$ a"!io$ !o "ompel MCIAA !o ma2e ,ood i!s oal %$de!a2i$, !o allow ep%"+ase add%"e paol e#ide$"e !o po#e !+e !a$sa"!io$. A! a$y a!e !+e obe"!io$ o$ !+e admissibili!y o& e#ide$"e o$ !+e basis o& !+e S!a!%!e o& Fa%ds may be wai#ed i& $o! !imely aised. Re"ods !e$d !o s%ppo! !+e "o$"l%sio$ !+a! MCIAA did $o! as !+e O%a$os a$d !+e I$o"ia$s posi! obe"! !o !+e i$!od%"!io$ o& paol e#ide$"e !o po#e i!s "ommi!me$! !o allow !+e &ome la$dow$es !o ep%"+ase !+ei espe"!i#e pope!ies %po$ !+e o""%e$"e o& "e!ai$ e#e$!s. Anunciacion 0da. e 3uano, et al. v. Repu)lic of the Philippines, et al.7/actan8!e)u International Airport C/!IAAD v. Ricardo L. Inocian, in his personal capacity and as Attorney8in8act of 3ly(pia ?. ?steves, et al. and Aletha Suico /agat in her personal capacity and as Attorney8in8act of Philip /. Suico, et al.> G.R. =os. 40KK) P 4004*. Feb%ay ' *)44. S!a!%!e o& Fa%ds. T+e S!a!%!e o& Fa%ds e9pessed i$ A!i"le 4<)( pa. 3*6 o& !+e Ci#il Code po#ides !+a! a "o$!a"! &o !+e sale o& eal pope!y o o& a$ i$!ees! !+eei$ s+all be %$e$&o"eable %$less !+e sale o some $o!e o memoa$d%m !+eeo& is i$ wi!i$, a$d s%bs"ibed by !+e pa!y o +is a,e$!. 8owe#e w+ee !+e #ebal "o$!a"! o& sale +as bee$ pa!ially e9e"%!ed !+o%,+ !+e pa!ial payme$!s made by o$e pa!y d%ly e"ei#ed by !+e #e$do as i$ !+e pese$! "ase !+e "o$!a"! is !a2e$ o%! o& !+e s"ope o& !+e S!a!%!e. T+e p%pose o& !+e S!a!%!e is !o pe#e$! &a%d a$d pe%y i$ !+e e$&o"eme$! o& obli,a!io$s depe$di$, &o !+ei e#ide$"e o$ !+e %$assis!ed memoy o& wi!$esses by eH%ii$, "e!ai$ e$%mea!ed "o$!a"!s a$d !a$sa"!io$s !o be e#ide$"ed by a wi!i$, si,$ed by !+e pa!y !o be "+a,ed. T+e S!a!%!e eH%ies "e!ai$ "o$!a"!s !o be e#ide$"ed by some $o!e o memoa$d%m i$ / 7
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be po#ed b%! does $o! de"lae !+em i$#alid be"a%se !+ey ae $o! ed%"ed !o wi!i$,. I$ &i$e !+e &om eH%ied %$de !+e S!a!%!e is &o "o$#e$ie$"e o e#ide$!iay p%poses o$ly. T+ee "a$ be $o seio%s a,%me$! abo%! !+e pa!ial e9e"%!io$ o& !+e sale i$ H%es!io$. T+e e"ods s+ow !+a! pe!i!io$es +ad o$ sepaa!e o""asio$s ,i#e$ Gabiel S. a$d Gabiel . s%ms o& mo$ey as pa!ial payme$!s o& !+e p%"+ase pi"e. Les! i! be o#eloo2ed a "o$!a"! !+a! i$&i$,es !+e S!a!%!e o& Fa%ds is a!i&ied by !+e a""ep!a$"e o& be$e&i!s %$de !+e "o$!a"!. E#ide$!ly Gabiel . as +is &a!+e ealie +ad be$e&i!ed &om !+e pa!ial payme$!s made by !+e pe!i!io$es. T+%s $ei!+e Gabiel . $o !+e o!+e espo$de$!ss%""essi#e p%"+ases o& s%be"! lo!s"o%ld pla%sibly se! %p !+e S!a!%!e o& Fa%ds !o !+wa! pe!i!io$es? e&&o!s !owads es!ablis+i$, !+ei law&%l i,+! o#e !+e s%be"! lo! a$d emo#i$, a$y "lo%d i$ !+ei !i!le. As i! wee pe!i!io$es $eed o$ly !o pay !+e o%!s!a$di$, bala$"e o& !+e p%"+ase pi"e a$d !+a! wo%ld "omple!e !+e e9e"%!io$ o& !+e oal sale. Anthony 3rduKa, et al. vs. ?duardo ;. uente)ella, et al., ".R. #o. $2'%*$, ;une +-, +$. Co$!a"!s; e$&o"eabili!y; S!a!%!e o& Fa%ds. T+e S!a!%!e o& Fa%ds &o%$d i$ paa,ap+ 3*6 A!i"le 4<)( o& !+e Ci#il Code eH%ies &o e$&o"eabili!y "e!ai$ "o$!a"!s e$%mea!ed !+eei$ !o be e#ide$"ed by some $o!e o memoa$d%m. T+e !em /S!a!%!e o& Fa%ds7 is des"ip!i#e o& s!a!%!es !+a! eH%ie "e!ai$ "lasses o& "o$!a"!s !o be i$ wi!i$,; a$d !+a! do $o! depi#e !+e pa!ies o& !+e i,+! !o "o$!a"! wi!+ espe"! !o !+e ma!!es !+eei$ i$#ol#ed b%! meely e,%la!e !+e &omali!ies o& !+e "o$!a"! $e"essay !o e$de i! e$&o"eable. I$ o!+e wods !+e S!a!%!e o& Fa%ds o$ly lays dow$ !+e me!+od by w+i"+ !+e e$%mea!ed "o$!a"!s may be po#ed. %! i! does $o! de"lae !+em i$#alid be"a%se !+ey ae $o! ed%"ed !o wi!i$, i$asm%"+ as by law "o$!a"!s ae obli,a!oy i$ w+a!e#e &om !+ey may +a#e bee$ e$!eed i$!o po#ided all !+e esse$!ial eH%isi!es &o !+ei #alidi!y ae pese$!. T+e obe"! is !o pe#e$! &a%d a$d pe%y i$ !+e e$&o"eme$! o& obli,a!io$s depe$di$, &o e#ide$"e !+eeo& o$ !+e %$assis!ed memoy o& wi!$esses by eH%ii$, "e!ai$ e$%mea!ed "o$!a"!s a$d !a$sa"!io$s !o be e#ide$"ed by a wi!i$, si,$ed by !+e pa!y !o be "+a,ed. T+e e&&e"! o& $o$"omplia$"e wi!+ !+is eH%ieme$! is simply !+a! $o a"!io$ "a$ be e$&o"ed %$de !+e ,i#e$ "o$!a"!s. I& a$ a"!io$ is $e#e!+eless &iled i$ "o%! i! s+all waa$! a dismissal %$de Se"!io$ 43i6 R%le 4 o& !+e R%les o& Co%! %$less !+ee +as bee$ amo$, o!+es !o!al o pa!ial pe&oma$"e o& !+e obli,a!io$ o$ !+e pa! o& ei!+e pa!y. I! +as bee$ pi#a!e espo$de$!?s "o$sis!e$! s!a$d si$"e !+e i$"ep!io$ o& !+e i$s!a$! "ase !+a! s+e +as e$!eed i$!o a "o$!a"! wi!+ pe!i!io$es. As &a as s+e is "o$"e$ed s+e +as aleady pe&omed +e pa! o& !+e obli,a!io$ %$de !+e a,eeme$! by %$de!a2i$, !+e deli#ey o& !+e *4 mo!o #e+i"les "o$!a"!ed &o by Ople i$ !+e $ame o& pe!i!io$e m%$i"ipali!y. T+is "laim is well s%bs!a$!ia!ed a! leas! &o !+e i$i!ial p%pose o& se!!i$, o%! a #alid "a%se o& a"!io$ a,ai$s! pe!i!io$es by "opies o& !+e bills o& ladi$, a!!a"+ed !o !+e "omplai$! $ami$, pe!i!io$e m%$i"ipali!y as "o$si,$ee o& !+e s+ipme$!. >e!i!io$es +a#e $o! a! a$y !ime e9pessly de$ied !+is alle,a!io$ a$d +e$"e !+e same is bi$di$, o$ !+e !ial "o%! &o !+e p%pose o& %li$, o$ !+e mo!io$ !o dismiss. I$ o!+e wods si$"e !+ee e9is!s a$ i$di"a!io$ by way o& alle,a!io$ !+a! !+ee +as bee$ pe&oma$"e o& !+e obli,a!io$ o$ !+e pa! o& espo$de$! !+e "ase is e9"l%ded &om !+e "o#ea,e o& !+e %le o$ dismissals based o$ %$e$&o"eabili!y %$de !+e s!a!%!e o& &a%ds a$d ei!+e pa!y may !+e$ e$&o"e i!s "laims a,ai$s! !+e o!+e. he /unicipality of 9agonoy, Bulacan, represented )y the 9on. eliE 0. 3ple, /unicipal /ayor, and eliE 0. 3ple, in his capacity vs. 9on. Si(eon P. u(du(, ;r. in his capacity as Presiding ;udge of the Regional rial !ourt, Branch 2, !e)u !ity, et al., ".R. #o. $'%+%-, /arch ++, +$ Co$!a"!; #oid "o$!a"!; "o$seH%e$"es. I! is se!!led !+a! a #oid "o$!a"! is eH%i#ale$! !o $o!+i$,; i! pod%"es $o "i#il e&&e"!. I! does $o! "ea!e modi&y o e9!i$,%is+ a %idi"al ela!io$. >a!ies !o a #oid a,eeme$! "a$$o! e9pe"! !+e aid o& !+e law; !+e "o%!s lea#e !+em as !+ey ae be"a%se !+ey ae deemed i$ pari delicto o in equal fault. T+is %le +owe#e is $o! absol%!e. A!i"le 4<4* o& !+e Ci#il Code po#ides a$ e9"ep!io$ a$d pemi!s !+e e!%$ o& !+a! w+i"+ may +a#e bee$ ,i#e$ %$de a #oid "o$!a"!. T+%s: A!. 4<4*. I& !+e a"! i$ w+i"+ !+e %$law&%l o &obidde$ "a%se "o$sis!s does $o! "o$s!i!%!e a "imi$al o&&e$se !+e &ollowi$, %les s+all be obse#ed: 346 W+e$ !+e &a%l! is o$ !+e pa! o& bo!+ "o$!a"!i$, pa!ies $ei!+e may e"o#e w+a! +e +as ,i#e$ by #i!%e o& !+e "o$!a"! o dema$d !+e pe&oma$"e o& !+e o!+e?s %$de!a2i$,; 3*6 W+e$ o$ly o$e o& !+e "o$!a"!i$, pa!ies is a! &a%l! +e "a$$o! e"o#e w+a! +e +as ,i#e$ by easo$ o& !+e "o$!a"! o as2 &o !+e &%l&illme$! o& w+a! +as bee$ pomised +im. T+e o!+e w+o is $o! a! &a%l! may dema$d !+e e!%$ o& w+a! +e +as ,i#e$ wi!+o%! a$y obli,a!io$ !o "omply wi!+ +is pomise. T+e e#ide$"e o$ e"od es!ablis+ed !+a! pe!i!io$es i$deed pemi!!ed a$ %$li"e$sed !ade a$d salesma$ li2e Me$do-a !o +a$dle es o$de$!?s a""o%$!. O$ !+e o!+e +a$d !+e e"od is bee&! o& oo& !+a! es o$de$! +ad 2$owled e !+a! !+e eso$
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oid "o$!a"!. A #oid "o$!a"! is eH%i#ale$! !o $o!+i$,; i! pod%"es $o "i#il e&&e"!. I! does $o! "ea!e modi&y o e9!i$,%is+ a %idi"al ela!io$. >a!ies !o a #oid a,eeme$! "a$$o! e9pe"! !+e aid o& !+e law; !+e "o%!s lea#e !+em as !+ey ae be"a%se !+ey ae deemed i$ pari delicto o in equal fault. To !+is %le +owe#e !+ee ae e9"ep!io$s !+a! pemi! !+e e!%$ o& !+a! w+i"+ may +a#e bee$ ,i#e$ %$de a #oid "o$!a"!. O$e o& !+e e9"ep!io$s is &o%$d i$ A!i"le 4<4* o& !+e Ci#il Code w+i"+ s!a!es: A!. 4<4*. I& !+e a"! i$ w+i"+ !+e %$law&%l o &obidde$ "a%se "o$sis!s does $o! "o$s!i!%!e a "imi$al o&&e$se !+e &ollowi$, %les s+all be obse#ed: 346 W+e$ !+e &a%l! is o$ !+e pa! o& bo!+ "o$!a"!i$, pa!ies $ei!+e may e"o#e w+a! +e +as ,i#e$ by #i!%e o& !+e "o$!a"! o dema$d !+e pe&oma$"e o& !+e o!+e?s %$de!a2i$,; 3*6 o$ly o$eo&o&w+a! !+e "o$!a"!i$, pa!ies is+im. a! &a%l! +e "a$$o! +asdema$d ,i#e$ by!+e easo$ o& !+e "o$!a"! o as2 &o W+e$ !+e &%l&illme$! +as bee$ pomised T+e o!+e w+o e"o#e is $o! a!w+a! &a%l!+emay e!%$ o& w+a! +e +as ,i#e$ wi!+o%! a$y obli,a!io$ !o "omply wi!+ +is pomise. Respo$de$! was well awae !+a! as mee ,a$!ee o& !+e s%be"! s!all +e "a$$o! sell i! wi!+o%! !+e "o$se$! o& !+e Ci!y Go#e$me$! o& Maawi. Ye! +e sold !+e same !o pe!i!io$es. T+e e"ods +owe#e ae bee&! o& a$y alle,a!io$ a$d poo& !+a! pe!i!io$es +ad a"!%al 2$owled,e o& !+e s!a!%s o& espo$de$!?s ow$es+ip o& !+e s%be"! s!all. >e!i!io$es "a$ !+ee&oe e"o#e !+e amo%$! !+ey +ad ,i#e$ %$de !+e "o$!a"!. I$ !avite evelop(ent Bank v. Spouses Li( a$d !astillo, et al. v. A)alayan we +eld !+a! i$ "ase o& a #oid sale !+e selle +as $o i,+! w+a!soe#e !o 2eep !+e mo$ey paid by #i!%e !+eeo& a$d s+o%ld e&%$d i! wi!+ i$!ees! a! !+e le,al a!e "omp%!ed &om !+e da!e o& &ili$, o& !+e "omplai$! %$!il &%lly paid. 9ada ati(a "aguil /agoyag, oined )y her hus)and, 9adihasan /adla@i /agoyag vs. 9adi A)u)acar /aruho(, ".R. #o. $2-2*<, August +, +$. Co$!a"!s; i$#alida!io$ o$ ,o%$d o& $o!aial i$&imi!y. >e!i!io$es "laim !+a! si$"e !+e epese$!a!i#es o& !+e "opoa!io$s w+i"+ e9e"%!ed !+e @eed o& Absol%!e Sale appeaed be&oe !+e =o!ay >%bli" !+e a"2$owled,me$! was "omplied wi!+ e#e$ i& !+ey admi!!ed !+a! !+e epese$!a!i#es did $o! pese$! !+ei eside$"e "e!i&i"a!es $o i$di"a!e !+e $%mbe da!e a$d pla"e o& iss%e o& !+e same eside$"e "e!i&i"a!es i$ !+e a"2$owled,me$!. As s+ow$ i$ !+e e"ods a$d i$ !+e !es!imo$y o& !+e $o!ay !+e eH%ieme$! o& !+e pese$!a!io$ o& !+e eside$"e "e!i&i"a!e was missi$,. "olden Apple Realty evelop(ent !orporation and Rosvi)on Realty !orporation vs. Sierra "rande Realty !orporation, /anphil Invest(ent !orporation, Renan 0. Santos and Patricio /a(aril, ".R. #o. $$-%&2, ;uly +%, +$. Co$!a"!; sale; $%lli!y be"a%se o& &o,ey. I$ ode !+a! !+e +olde o& a "e!i&i"a!e &o #al%e iss%ed by #i!%e o& !+e e,is!a!io$ o& a #ol%$!ay i$s!%me$! may be "o$sideed a +olde i$ ,ood &ai!+ a$d &o #al%e !+e i$s!%me$! e,is!eed s+o%ld $o! be &o,ed. I$d%bi!ably !+ee&oe !+e H%es!io$ed @eed o& Absol%!e Sale did $o! "o$#ey a$y !i!le !o +eei$ pe!i!io$es. T+%s we +old !+a! wi!+ !+e pese$!a!io$ o& !+e &o,ed deed e#e$ i& a""ompa$ied by !+e ow$e?s d%pli"a!e "e!i&i"a!e o& !i!le !+e e,is!eed ow$e did $o! !+eeby lose +is !i!le a$d $ei!+e does !+e assi,$ee i$ !+e &o,ed deed a"H%ie a$y i,+! o !i!le !o !+e said pope!y. Spouses Patricio and /yrna Bernales vs. 9eirs of ;ulian Sa()aan, et al., ".R. #o. $'<+2$, ;anuary $&, +$. Co$!a"!; #oid "o$!a"!. A "o$!a"! is #oid i& o$e o& !+e esse$!ial eH%isi!es o& "o$!a"!s %$de A!i"le 4(40 o& !+e =ew Ci#il Code is la"2i$,. All !+ese eleme$!s m%s! be pese$! !o "o$s!i!%!e a #alid "o$!a"!. Co$se$! is esse$!ial !o !+e e9is!e$"e o& a "o$!a"!; a$d w+ee i! is wa$!i$, !+e "o$!a"! is $o$Be9is!e$!. I$ a "o$!a"! o& sale i!s pe&e"!io$ is "o$s%mma!ed a! !+e mome$! !+ee is a mee!i$, o& !+e mi$ds %po$ !+e !+i$, !+a! is !+e obe"! o& !+e "o$!a"! a$d %po$ !+e pi"e. Co$se$! is ma$i&es!ed by !+e mee!i$, o& !+e o&&e a$d !+e a""ep!a$"e o& !+e !+i$, a$d !+e "a%se w+i"+ ae !o "o$s!i!%!e !+e "o$!a"!. To e$!e i$!o a #alid "o$!a"! o& sale !+e pa!ies m%s! +a#e !+e "apa"i!y !o do so. E#ey peso$ is pes%med !o be "apa"i!a!ed !o e$!e i$!o a "o$!a"! %$!il sa!is&a"!oy poo& !o !+e "o$!ay is pese$!ed. T+e b%de$ o& poo& is o$ !+e i$di#id%al asse!i$, a la"2 o& "apa"i!y !o "o$!a"! a$d !+is b%de$ +as bee$ "+aa"!ei-ed as eH%ii$, &o i!s sa!is&a"!io$ "lea a$d "o$#i$"i$, e#ide$"e. W+ile a "opoa!io$ is a %idi"al peso$ i! "a$$o! a"! e9"ep! !+o%,+ i!s boad o& die"!os as a "olle"!i#e body w+i"+ is #es!ed wi!+ !+e powe a$d espo$sibili!y !o de"ide w+e!+e !+e "opoa!io$ s+o%ld e$!e i$!o a "o$!a"! !+a! will bi$d !+e "opoa!io$ s%be"! !o !+e a!i"les o& i$"opoa!io$ byBlaws o ele#a$! po#isio$s o& law. T+is ,a$! !o !+e boad o& all "opoa!e powes is e9pli"i! %$de Se"!io$ *( o& !+e Copoa!io$ Code s!a!i$,: /All "opoa!e powes s+all be e9e"ised a$d all "opoa!e b%si$ess s+all be "o$d%"!ed by !+e boad o& die"!os.7
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&om !+e disH%isi!io$ o& !+e a$!iB,a&! "o%! o$ !+is ma!!e. irst Philippine 9olding !orporation vs. rans /iddle ?ast MPhils.N ?quities Inc., ".R. #o. $2-&&. ece()er *, +-. Co$!a"!; #oid "o$!a"!; pes"ip!io$. T+e sale o& s%be"! pope!ies !o pe!i!io$es ae $%ll a$d #oid. U$de A!i"le 4<4) o& !+e Ci#il Code a$ a"!io$ o de&e$se &o !+e de"laa!io$ o& !+e i$e9is!e$"e o& a "o$!a"! is impes"ip!ible. 8e$"e pe!i!io$es? "o$!e$!io$ !+a! espo$de$!s? "a%se o& a"!io$ is aleady baed by pes"ip!io$ is wi!+o%! le,al basis. ;esus !a(pos and Rose(arie !a(pos8Bautista vs. #enita Buevinida Pastrana, et al., ".R. #o. $2&--*, ece()er %, +-. Co$!a"!; #oid "o$!a"!; es"issio$. >e!i!io$es? a,%me$! !+a! !+e appli"able law i$ !+is "ase is A!i"le 4(043(6 o& !+e Ci#il Code o$ es"issible "o$!a"!s a$d $o! A!i"le 4<)' o$ #oid "o$!a"!s is $o! a H%es!io$ o& &is! impessio$. T+is iss%e +ad aleady bee$ se!!led se#eal de"ades a,o w+e$ we +eld !+a! /a$ a"!io$ !o es"i$d is &o%$ded %po$ a$d pes%pposes !+e e9is!e$"e o& a "o$!a"!7. A "o$!a"! w+i"+ is $%ll a$d #oid is $o "o$!a"! a! all a$d +e$"e "o%ld $o! be !+e s%be"! o& es"issio$. I$ !+e i$s!a$! "ase !+e @eeds o& Absol%!e Sale ae &i"!i!io%s a$d i$e9is!e$! &o bei$, absol%!ely sim%la!ed "o$!a"!s. I! is !%e !+a! !+e CA "i!ed i$s!a$"es !+a! may "o$s!i!%!e bad,es o& &a%d %$de A!i"le 4(0K o& !+e Ci#il Code o$ es"issible "o$!a"!s. %! !+ee is $o!+i$, else i$ !+e appealed de"isio$ !o i$di"a!e !+a! es"issio$ was "o$!empla!ed %$de !+e said po#isio$ o& !+e Ci#il Code. T+e a&oeme$!io$ed bad,es m%s! +a#e bee$ "o$sideed meely as ,o%$ds &o +oldi$, !+a! !+e sale is &i"!i!io%s. Co$seH%e$!ly we &i$d !+a! !+e CA popely applied !+e ,o#e$i$, law o#e !+e ma!!e %$de "o$sidea!io$ w+i"+ is A!i"le 4<)' o& !+e Ci#il Code o$ #oid o i$e9is!e$! "o$!a"!s. ;esus !a(pos and Rose(arie !a(pos8Bautista vs. #enita Buevinida Pastrana, et al., ".R. #o. $2&--*, ece()er %, +-. Co$!a"!; #oid "o$!a"!; ,ambli$,. Gambli$, is po+ibi!ed by !+e laws o& !+e >+ilippi$es as spe"i&i"ally po#ided i$ A!i"les 4'5 !o 4'' o& !+e Re#ised >e$al Code as ame$ded. Gambli$, is a$ a"! beyo$d !+e pale o& ,ood moals a$d is !+%s po+ibi!ed a$d p%$is+ed !o epess a$ e#il !+a! %$demi$es !+e so"ial moal a$d e"o$omi" ,ow!+ o& !+e $a!io$. >eside$!ial @e"ee =o. 4)* 3>@ 4)*6 w+i"+ modi&ied A!i"les 4'5B4'' o& !+e Re#ised >e$al Code a$d epealed i$"o$sis!e$! po#isio$s pes"ibed s!i&&e pe$al!ies o$ ille,al ,ambli$,. As a %le all &oms o& ,ambli$, ae ille,al. T+e o$ly &om o& ,ambli$, allowed by law is !+a! s!ip%la!ed %$de >eside$!ial @e"ee =o. 40' w+i"+ ,a#e >AGCOR i!s &a$"+ise !o mai$!ai$ a$d opea!e ,ambli$, "asi$os. T+e iss%e !+e$ !%$s o$ w+e!+e >AGCOR "a$ #alidly s+ae i!s &a$"+ise wi!+ %$2e! opea!os !o opea!e ,ambli$, "asi$os i$ !+e "o%$!y. T+e %$2e! A,eeme$! wo%ld be #alid i& %$de Se"!io$ (3+6 o& >AGCOR?s "+a!e >AGCOR "o%ld s+ae i!s ,ambli$, &a$"+ise wi!+ a$o!+e e$!i!y. I$ !+is "ase >AGCOR by !a2i$, o$ly a pe"e$!a,e o& !+e ea$i$,s o& AS Copoa!io$ &om i!s &oei,$ "%e$"y "olle"!io$ allowed AS Copoa!io$ !o opea!e ,ami$, !ables i$ !+e dolla pi!. T+e %$2e! A,eeme$! is i$ die"! #iola!io$ o& >AGCOR?s "+a!e a$d is !+ee&oe #oid. Si$"e !+e %$2e! A,eeme$! #iola!es >AGCOR?s "+a!e ,ambli$, be!wee$ !+e %$2e! playe a$d !+e %$2e! opea!o %$de s%"+ a,eeme$! is ille,al a$d may $o! be e$&o"ed by !+e "o%!s. A!i"le *)4< o& !+e Ci#il Code w+i"+ e&es !o ille,al ,ambli$, s!a!es !+a! $o a"!io$ "a$ be mai$!ai$ed by !+e wi$$e &o !+e "olle"!io$ o& w+a! +e +as wo$ i$ a ,ame o& "+a$"e. =un @an Byung vs. Philippine A(use(ent "a(ing !orporation, ".R. #o. $'<&&<, ece()er $$, +-.
ESTO>>EL La"+es. La"+es is !+e &ail%e o $e,le"! &o a$ %$easo$able a$d %$e9plai$ed le$,!+ o& !ime !o do !+a! w+i"+ by e9e"isi$, d%e dili,e$"e "o%ld o s+o%ld +a#e bee$ do$e ealie; i! is $e,li,e$"e o omissio$ !o asse! a i,+! wi!+i$ a easo$able !ime waa$!i$, !+e pes%mp!io$ !+a! !+e pa!y e$!i!led !o asse! i! ei!+e +as aba$do$ed o de"li$ed !o asse! i!. T+ee is $o absol%!e %le as !o w+a! "o$s!i!%!es la"+es o s!ale$ess o& dema$d; ea"+ "ase is !o be de!emi$ed a""odi$, !o i!s pa!i"%la "i"%ms!a$"es wi!+ !+e H%es!io$ o& la"+es addessed !o !+e so%$d dis"e!io$ o& !+e "o%!. e"a%se la"+es is a$ eH%i!able do"!i$e i!s appli"a!io$ is "o$!olled by eH%i!able "o$sidea!io$s a$d s+o%ld $o! be %sed !o de&ea! %s!i"e o !o pepe!%a!e &a%d o i$%s!i"e. Fom !+e e"ods i! appeas !+a! Ma",ap+i"s &is! lea$ed o& !+e assi,$me$! w+e$ Sime @aby se$! i!s le!!eB$o!i"e da!ed
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La"+es. La"+es is !+e &ail%e o& o $e,le"! &o a$ %$easo$able a$d %$e9plai$ed le$,!+ o& !ime !o do !+a! w+i"+ by e9e"isi$, d%e dili,e$"e "o%ld o s+o%ld +a#e bee$ do$e ealie o !o asse! a i,+! wi!+i$ easo$able !ime waa$!i$, a pes%mp!io$ !+a! !+e pa!y e$!i!led !+ee!o +as ei!+e aba$do$ed i! o de"li$ed !o asse! i!. A(elia B. 9e)ron vs. ranco L. Loyola, et al., ".R. #o. $'%-', ;uly &, +$. La"+es; eleme$!s. La"+es is $e,li,e$"e o omissio$ !o asse! a i,+! wi!+i$ a easo$able !ime waa$!i$, a pes%mp!io$ !+a! !+e pa!y e$!i!led !o asse! i! ei!+e +as aba$do$ed i! o de"li$ed !o asse! i!. I!s esse$!ial eleme$!s ae: 346 "o$d%"! o$ !+e pa! o& !+e de&e$da$! o o& o$e %$de w+om +e "laims ,i#i$, ise !o !+e si!%a!io$ "omplai$ed o&; 3*6 delay i$ asse!i$, "omplai$a$!?s i,+! a&!e +e +ad 2$owled,e o& !+e de&e$da$!?s "o$d%"! a$d a&!e +e +as a$ oppo!%$i!y !o s%e; 3(6 la"2 o& 2$owled,e o $o!i"e o$ !+e pa! o& !+e de&e$da$! !+a! !+e "omplai$a$! wo%ld asse! !+e i,+! o$ w+i"+ +e bases +is s%i!; a$d 3<6 i$%y o pe%di"e !o !+e de&e$da$! i$ !+e e#e$! elie& is a""oded !o !+e "omplai$a$!. I$ !+e pese$! "ase e"ods "lealy s+ow +a#e &iled a"!io$ a$$%l !+e mo!,a,e o$ !+ei b%!!+a$ &o %$e9plai$ed easo$s !+ey &ailed !+a! !o doespo$de$!s so. T+ey o$ly"o%ld H%es!io$ed !+ea$ loa$ a$d !o mo!,a,e !a$sa"!io$s a&!e !+epope!ies lapse o& moe &i#e yeas &om !+e da!e o& !+e &oe"los%e sale. I! beas $o!i$, !+a! !+e eal es!a!e mo!,a,e was e,is!eed a$d a$$o!a!ed o$ !+e !i!les o& espo$de$!s a$d !+e la!!e wee e#e$ i$&omed o& !+e e9!a%di"ial &oe"los%e a$d !+e s"+ed%led a%"!io$. I$s!ead o& imp%,$i$, !+e eal es!a!e mo!,a,e a$d opposi$, !+e s"+ed%led p%bli" a%"!io$ espo$de$!s? lawye wo!e a le!!e !o pe!i!io$e a$d meely as2ed !+a! !+e s"+ed%led a%"!io$ be pos!po$ed !o a la!e da!e. E#e$ a&!e &i#e yeas espo$de$!s s!ill &ailed !o oppose !+e &oe"los%e a$d !+e s%bseH%e$! !a$s&e o& !i!les !o pe!i!io$e w+e$ !+ei a,e$! a"!i$, i$ be+al& o& !+e pi$"ipal se$! a le!!e poposi$, !o b%y ba"2 !+e pope!ies. I! was o$ly w+e$ !+e $e,o!ia!io$s &ailed !+a! espo$de$!s &iled !+e i$s!a$! "ase. Clealy espo$de$!s slep! o$ !+ei i,+!s. ar ?ast Bank and rust !o(pany M#o@ Bank of the Philippine IslandsN and Rolando Bora, eputy Sherrif vs. Sps. ?rnesto and Leonor !. !ayetano, ".R. #o. $2---, ;anuary +&, +$. Es!oppel. Es!oppel a$ eH%i!able pi$"iple oo!ed i$ $a!%al %s!i"e pe#e$!s peso$s &om ,oi$, ba"2 o$ !+ei ow$ a"!s a$d epese$!a!io$s !o !+e pe%di"e o& o!+es w+o +a#e elied o$ !+em. T+e pi$"iple is "odi&ied i$ A!i"le 4<(4 o& !+e Ci#il Code. Es!oppel "a$ also be &o%$d i$ R%le 4(4 Se"!io$ * 3a6 o& !+e R%les o& Co%!. T+e eleme$!s o& es!oppel ae: first !+e a"!o w+o %s%ally m%s! +a#e 2$owled,e $o!i"e o s%spi"io$ o& !+e !%e &a"!s "omm%$i"a!es some!+i$, !o a$o!+e i$ a misleadi$, way ei!+e by wods "o$d%"! o sile$"e; second !+e o!+e i$ &a"! elies a$d elies easo$ably o %s!i&iably %po$ !+a! "omm%$i"a!io$; third !+e o!+e wo%ld be +amed ma!eially i& !+e a"!o is la!e pemi!!ed !o asse! a$y "laim i$"o$sis!e$! wi!+ +is ealie "o$d%"!; a$d fourth !+e a"!o 2$ows e9pe"!s o &oesees !+a! !+e o!+e wo%ld a"! %po$ !+e i$&oma!io$ ,i#e$ o !+a! a easo$able peso$ i$ !+e a"!o?s posi!io$ wo%ld e9pe"! o &oesee s%"+ a"!io$. .A.. ee !o(puter Syste(s, Inc. v. 3nline #et@orks International, Inc.> G.R. =o. 4K4*(0. Feb%ay * *)44. Es!oppel. T+e i$eH%i!y es%l!i$, &om !+e abo,a!io$ o& !+e w+ole po"eedi$,s a! !+e la!e s!a,e w+e$ !+e de"isio$ s%bseH%e$!ly e$deed was ad#ese !o !+e peso$s aisi$, !+e iss%e o& i$adeH%a"y o& do"2e! &ee payme$! is !+e e#il bei$, a#oided by !+e eH%i!able pi$"iple o& es!oppel. avid Lu v. Paterno Lu =(, Sr., et al.7Paterno Lu =(, Sr., et al. v. avid Lu7;ohn Lu =(, et al. v. he 9on. !ourt of Appeals of !e)y !ity, et al .; G.R. =o. 45(')JG.R. =o. 45K(04JG.R. =o. 4K)00'. Feb%ay 45 *)44. La"+es. T+e esse$"e o& la"+es o /s!ale dema$ds7 is !+e &ail%e o $e,le"! &o a$ %$easo$able a$d %$e9plai$ed le$,!+ o& !ime !o do !+a! w+i"+ by e9e"isi$, d%e dili,e$"e "o%ld o s+o%ld +a#e bee$ do$e ealie !+%s ,i#i$, ise !o a pes%mp!io$ !+a! !+e pa!y e$!i!led !o asse! i! ei!+e +as aba$do$ed o de"li$ed !o asse! i!. I! is $o! "o$"e$ed wi!+ mee lapse o& !ime; !+e &a"! o& delay s!a$di$, alo$e bei$, i$s%&&i"ie$! !o "o$s!i!%!e la"+es. I$ addi!io$ i! is a %le o& eH%i!y a$d applied $o! !o pe$ali-e $e,le"! o sleepi$, o$ o$e?s i,+!s b%! a!+e !o a#oid e"o,$i-i$, a i,+! w+e$ !o do so wo%ld es%l! i$ a "lealy %$&ai si!%a!io$. T+ee is $o absol%!e %le as !o w+a! "o$s!i!%!es la"+es o s!ale$ess o& dema$d; ea"+ "ase is !o be de!emi$ed a""odi$, !o i!s pa!i"%la "i"%ms!a$"es. Ul!ima!ely !+e H%es!io$ o& la"+es is addessed !o !+e so%$d dis"e!io$ o& !+e "o%! a$d bei$, a$ eH%i!able do"!i$e i!s appli"a!io$ is "o$!olled by eH%i!able "o$sidea!io$s. I! "a$$o! be %sed !o de&ea! %s!i"e o pepe!a!e &a%d a$d i$%s!i"e.I! is !+e be!!e %le !+a! "o%!s %$de !+e pi$"iple o& eH%i!y will $o! be ,%ided o bo%$d s!i"!ly by !+e s!a!%!e o& limi!a!io$s o !+e do"!i$e o& la"+es w+e$ !o be so a ma$i&es! wo$, o i$%s!i"e wo%ld es%l!. I! is si,$i&i"a$! !o poi$! o%! a! !+is %$"!%e !+a! !+e o#eidi$, "o$sidea!io$ i$ !+e i$s!a$! "ase is !+a! pe!i!io$e was depi#ed o& !+e s%be"! pope!ies w+i"+ i! s+o%ld +a#e i,+!ly ow$ed wee i! $o! &o !+e &a%d "ommi!!ed by espo$de$!s. 8e$"e i! wo%ld be !+e +ei,+! o& i$%s!i"e i& espo$de$!s wo%ld be allowed !o ,o s"o!B&ee simply be"a%se pe!i!io$e elied i$ ,ood &ai!+ o$ !+e &ome?s &alse epese$!a!io$s. esides as ealie dis"%ssed e#e$ i$ !+e e9e"ise o& d%e dili,e$"e pe!i!io$e
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elied !+eeo$. I! spi$,s &om eH%i!y a$d is desi,$ed !o aid !+e law i$ !+e admi$is!a!io$ o& %s!i"e w+ee wi!+o%! i!s aid i$%s!i"e mi,+! es%l!. Es!oppel by sile$"e? aises w+ee a peso$ w+o by &o"e o& "i"%ms!a$"es is obli,ed !o a$o!+e !o spea2 e&ai$s &om doi$, so a$d !+eeby i$d%"es !+e o!+e !o belie#e i$ !+e e9is!e$"e o& a s!a!e o& &a"!s i$ elia$"e o$ w+i"+ +e a"!s !o +is pe%di"e. Sile$"e may s%ppo! a$ es!oppel w+e!+e !+e &ail%e !o spea2 is i$!e$!io$al o $e,li,e$!. o!+ !ial a$d appella!e "o%!s basi"ally a,ee !+a! FETC is es!opped &om "laimi$, !+a! !+e i$s%a$"e pemi%m +as bee$ %$paid. T+a! FETC i$d%"ed Ma9ili!e a$d MaH%es !o belie#e !+a! !+e i$s%a$"e pemi%m +as i$ &a"! bee$ debi!ed &om Ma9ili!e?s a""o%$! is ,o%$ded o$ !+e !+e &ollowi$, &a"!s: 346 FETC epese$!ed a$d "ommi!!ed !o +a$dle Ma9ili!e?s &i$a$"i$, a$d "api!al eH%ieme$!s i$"l%di$, !+e ela!ed !a$sa"!io$s s%"+ as !+e i$s%a$"e o& !+e !%s! e"eip!ed me"+a$dise; pio !o !+e s%be"! I$s%a$"e >oli"y =o. 4)*<<('se$! !+eFETC pemi%ms !+e !+ee sepaa!e &iewi!!e$ i$s%a$"e poli"ies +ad bee$ paid3*6 !+o%,+ a%!oma!i" debi! aa$,eme$!; 3(6 FEII $o!&o Ma9ili!e $o MaH%es emi$des da!ed 4' O"!obe 4''< *< a$%ay 4''5 a$d Ma"+ 4''5 !o debi! Ma9ili!e?s a""o%$! es!ablis+i$, FETC?s obli,a!io$ !o a%!oma!i"ally debi! Ma9ili!e?s a""o%$! &o !+e pemi%m amo%$!; 3<6 !+ee was $o wi!!e$ dema$d &om FETC o Ma2a!i I$s%a$"e Compa$y &o Ma9ili!e o MaH%es !o pay !+e i$s%a$"e pemi%m; 356 !+e s%be"! i$s%a$"e poli"y was eleased !o Ma9ili!e o$ 4' A%,%s! 4''<; a$d 36 !+e s%be"! i$s%a$"e poli"y emai$ed %$"a$"elled despi!e !+e alle,ed $o$Bpayme$! o& !+e pemi%m ma2i$, i! appea !+a! !+e i$s%a$"e poli"y emai$ed i$ &o"e a$d bi$di$,. ;ose /arques, et al. vs. ar ?ast Bank and rust !o(pany, et al. 7 ar ?ast Ban and rust !o(pany, et al. vs. ;ose /arques, et al.> ".R. #o. $2$<2-7".R. #o. $2$*$-, ;anuary $, +$$ . Es!oppel in pais. T+e pe!i!io$es? payme$! o& C+a$,e Ode =os. 4 4 a$d 4K a$d !+ei $o$Bobe"!io$ !o !+e o!+e "+a$,e odes e&&e"!ed by !+e espo$de$! "a$$o! ,i#e ise !o es!oppel in pais !+a! wo%ld e$de !+e pe!i!io$es liable &o !+e payme$! o& all "+a$,e odes. Es!oppel in pais, o eH%i!able es!oppel aises w+e$ o$e by +is a"!s epese$!a!io$s o admissio$s o by +is sile$"e w+e$ +e o%,+! !o spea2 o%! i$!e$!io$ally o !+o%,+ "%lpable $e,li,e$"e i$d%"es a$o!+e !o belie#e "e!ai$ &a"!s !o e9is! a$d !+e o!+e i,+!&%lly elies a$d a"!s o$ s%"+ belie&s so !+a! +e will be pe%di"ed i& !+e &ome is pemi!!ed !o de$y !+e e9is!e$"e o& s%"+ &a"!s. T+e eal o&&i"e o& !+e eH%i!able $om o& es!oppel is limi!ed !o s%pplyi$, de&i"ie$"y i$ !+e law b%! i! s+o%ld $o! s%ppla$! posi!i#e law. I$ !+is "ase !+e eH%ieme$! &o !+e pe!i!io$es? wi!!e$ "o$se$! !o a$y "+a$,e o al!ea!io$ i$ !+e spe"i&i"a!io$s pla$s a$d wo2s is e9pli"i! i$ A!i"le 4K*< o& !+e Ci#il Code a$d is deemed wi!!e$ i$ !+e "o$!a"! be!wee$ !+e pa!ies. T+e "o$!a"! also e9pessly po#ides !+a! a mee a"! o& !olea$"e does $o! "o$s!i!%!e appo#al. T+%s !+e pe!i!io$es did $o! by a""ep!i$, a$d payi$, &o C+a$,e Ode =os. 4 4 a$d 4K do away wi!+ !+e "o$!a"!%al !em o$ "+a$,e odes $o wi!+ !+e appli"a!io$ o& A!i"le 4K*<. T+e payme$!s &o C+a$,e Ode =os. 4 4 a$d 4K ae a! bes! a"!s o& !olea$"e o$ !+e pe!i!io$es? pa! !+a! "o%ld $o! modi&y !+e "o$!a"!. Spouses 0ictoriano chung and e))ie !hung vs. 4landay !onstruction, Inc.> ".R. #o. $&'<%, 3cto)er $$, +$. Es!oppel. T+e pi$"iple o& es!oppel es!s o$ !+e %le !+a! w+ee a pa!y by +is o +e deed o "o$d%"! +as i$d%"ed a$o!+e !o a"! i$ pa!i"%la ma$$e es!oppel e&&e"!i#ely bas !+e &ome &om adop!i$, a$ i$"o$sis!e$! posi!io$ a!!i!%de o "o%se o& "o$d%"! !+a! "a%ses loss o i$%y !o !+e la!!e. T+e do"!i$e o& es!oppel is based %po$ !+e ,o%$ds o& p%bli" poli"y &ai deali$, ,ood &ai!+ a$d %s!i"e a$d i!s p%pose is !o &obid o$e !o spea2 a,ai$s! +is ow$ a"! epese$!a!io$s o "ommi!me$!s !o !+e i$%y o& o$e w+om !+ey wee die"!ed a$d w+o easo$ably elied !+eeo$. T+e esse$!ial eleme$!s o& es!oppel as ela!ed !o !+e pa!y es!opped ae: 346 "o$d%"! w+i"+ amo%$!s !o a &alse epese$!a!io$ o "o$"ealme$! o& ma!eial &a"!s o a! leas! w+i"+ "al"%la!ed !o "o$#ey !+e impessio$ !+a! !+e &a"!s ae o!+ewise !+a$ a$d i$"o$sis!e$! wi!+ !+ose w+i"+ !+e pa!y s%bseH%e$!ly a!!emp!s !o asse!; 3*6 i$!e$!io$ o a! leas! e9pe"!a!io$ !+a! s%"+ "o$d%"! s+all be a"!ed %po$ by !+e o!+e pa!y; a$d 3(6 2$owled,e a"!%al o "o$s!%"!i#e o& !+e a"!%al &a"!s. Pacific Rehouse !orporation, et al. vs. ?IB Securities, Inc.> ".R. #o. $%*<', 3cto)er $<, +$. Es!oppel. We "a$$o! apply !+e do"!i$e o& es!oppel i$ !+e pese$! "ase si$"e !+e &a"!s a$d "i"%ms!a$"es as es!ablis+ed by !+e e"od $e,a!e i!s appli"a!io$. U$de !+e pomissoy $o!e w+a! !+e pe!i!io$es a,eed !o was !+e payme$! o& a specific su( of ><)))).)) pe mo$!+ &o si9 mo$!+s 1 not a * rate of interest per (onth for siE M'N (onths 1 o$ a loa$ w+ose pi$"ipal is >4)))))).)) &o !+e !o!al amo%$! o& >4*<)))).)). T+%s $o easo$ e9is!s !o pla"e !+e pe!i!io$es i$ es!oppel bai$, !+em &om aisi$, !+ei pese$! de&e$ses a,ai$s! a < pe mo$!+ i$!ees! a&!e !+e si9Bmo$!+ peiod o& !+e a,eeme$!. T+e boad esol%!io$ o$ !+e o!+e +a$d simply a%!+oi-es >a$!aleo$ !o "o$!a"! &o a loa$ wi!+ a mo$!+ly i$!ees! o& $o! moe !+a$ <. T+is esol%!io$ meely embodies !+e e9!e$! o& >a$!aleo$?s a%!+oi!y !o "o$!a"! a$d does $o! "ea!e a$y i,+! o obli,a!io$ e9"ep! as be!wee$ >a$!aleo$ a$d !+e boad. A,ai$ $o "a%se e9is!s !o pla"e !+e pe!i!io$es i$
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i$!ees! was iss%ed o$ May K 4'5) o <5 yeas be&oe plai$!i&&sBappellees &iled !+ei "omplai$! o$ Ma"+ 4) 4''5. As s%"+ i! is !+e Co%!?s &imly +eld #iew !+a! plai$!i&&sBappellees? "laim is baed $o! o$ly by pes"ip!io$ b%! also by la"+es. Aside &om !+e &a"! !+a! OCT =o. *<* +ad be"ome i$"o$!o#e!ible a&!e !+e lapse o& o$e yea &om !+e !ime a de"ee o& e,is!a!io$ was iss%ed a$y a"!io$ &o e"o$#eya$"e !+a! plai$!i&&sBappellees "o%ld +a#e a#ailed o& is also baed. Al!+o%,+ plai$!i&&sBappellees? "omplai$! was &o H%ie!i$, o& !i!le i! is i$ esse$"e a$ a"!io$ &o e"o$#eya$"e based o$ a$ implied o "o$s!%"!i#e !%s! "o$sidei$, !+a! plai$!i&&sBappellees wee alle,i$, i$ said "omplai$! !+a! !+ee was a seio%s mis!a2e i& $o! &a%d i$ !+e iss%a$"e o& OCT =o. *<* i$ &a#o o& ALI?s pede"essoBi$Bi$!ees!. I! is $ow wellBse!!led !+a! a$ a"!io$ &o e"o$#eya$"e w+i"+ is a le,al emedy ,a$!ed !o a la$dow$e w+ose pope!y +as bee$ wo$,&%lly o eo$eo%sly e,is!eed i$ a$o!+e?s $ame m%s! be &iled wi!+i$ !e$ yeas &om !+e iss%a$"e o& !+e !i!le si$"e s%"+ iss%a$"e opea!es as a "o$s!%"!i#e $o!i"e. Si$"e ALI?s !i!le is !a"ed !o a$ OCT iss%ed i$ 4'5) !+e !e$Byea pes"ip!i#e peiod e9pied i$ 4'). As &o la"+es !+e !em mea$s !+e $e,li,e$"e o omissio$ !o asse! a i,+! wi!+i$ a easo$able !ime waa$!i$, a pes%mp!io$ !+a! !+e pa!y e$!i!led !o asse! i! ei!+e +as aba$do$ed i! o de"li$ed !o asse! i!. I! does $o! i$#ol#e mee lapse o passa,e o& !ime b%! is pi$"ipally a$ impedime$! !o !+e asse!io$ o e$&o"eme$! o& a i,+! w+i"+ +as be"ome %$de !+e "i"%ms!a$"es i$eH%i!able o %$&ai !o pemi!. I$ !+e i$s!a$! "ase plai$!i&&sBappellees as well as !+ei pede"essoBi$Bi$!ees! +a#e $o! s+ow$ !+a! !+ey +a#e !a2e$ %di"ial s!eps !o $%lli&y OCT =o. *<* &om w+i"+ ALI?s !i!le was dei#ed &o <5 yeas. To allow !+em !o do so $ow a$d i& s%""ess&%l wo%ld be "lealy %$%s! a$d i$eH%i!able !o !+ose w+o elied o$ !+e #alidi!y o& said OCT !+e i$$o"e$! p%"+ases &o #al%e w+o ae po!e"!ed by !+e pe"ise po#isio$s o& >.@. 45*'. Spouses /orris !arpo and Socorro !arpo vs. Ayala Land, Incorporated, ".R. #o. $''&22, e)ruary <, +$.
VII. SPECIAL CONTRACTS TRUST T%s!; &id%"iay obli,a!io$. I$ see2i$, !o es!ablis+ a &id%"iay oblia!io$ o$ !+e pa! o& Co%a$,"o !+e Rep%bli" i$#o2es !+e &ollowi$, po#isio$s o& !+e !ivil !ode: A!i"le 4<55. W+e$ a$y !%s!ee ,%adia$ o o!+e peso$ +oldi$, a &id%"iay ela!io$s+ip %ses !%s! &%$ds &o !+e p%"+ase o& pope!y a$d "a%ses !+e "o$#eya$"e !o be made !o +im o !o a !+id peso$ a !%s! is es!ablis+ed by opea!io$ o& law i$ &a#o o& !+e peso$ !o w+om !+e &%$ds belo$,. A!i"le 4<5. I& pope!y is a"H%ied !+o%,+ mis!a2e o &a%d !+e peso$ ob!ai$i$, i!s by &o"e o& law "o$sideed a !%s!ee o& a$ implied !%s! &o !+e be$e&i! o& !+e peso$ &om w+om !+e pope!y "omes. a$d !+e !orporation !ode as &ollows: Se"!io$ (4. Lia)ility of directors, trustees or officers.Q @ie"!os o !%s!ees w+o will&%lly a$d 2$owi$,ly #o!e &o o asse$! !o pa!e$!ly %$law&%l a"!s o& !+e "opoa!io$ o w+o ae ,%il!y o& ,oss $e,li,e$"e o bad &ai!+ i$ die"!i$, !+e a&&ais o& !+e "opoa!io$ o a"H%ie a$y peso$al o pe"%$iay i$!ees! i$ "o$&li"! wi!+ !+ei d%!y as s%"+ die"!os o !%s!ees s+all be liable oi$!ly a$d se#eally &o all dama,es es%l!i$, !+ee&om s%&&eed by !+e "opoa!io$ i!s s!o"2+oldes o membes a$d o!+e peso$s. W+e$ a die"!o !%s!ee o o&&i"e a!!emp!s !o a"H%ie o a"H%ies i$ #iola!io$ o& +is d%!y a$y i$!ees! ad#ese !o !+e "opoa!io$ i$ espe"! o& a$y ma!!e w+i"+ +as bee$ eposed i$ +im i$ "o$&ide$"e as !o w+i"+ eH%i!y imposes a disabili!y %po$ +im !o deal i$ +is ow$ be+al& +e s+all be liable as a !%s!ee &o !+e "opoa!io$ a$d m%s! a""o%$! &o !+e po&i!s w+i"+ o!+ewise wo%ld +a#e a""%ed !o !+e "opoa!io$. @id Co%a$,"o bea"+ +is /&id%"iay d%!ies7 as a$ o&&i"e a$d membe o& !+e oad o& @ie"!os o& !+e UC> @id +is a"H%isi!io$ a$d +oldi$, o& !+e "o$!es!ed SMC s+aes "ome %$de a "o$s!%"!i#e !%s! i$ &a#o o& !+e Rep%bli" T+e a$swes !o !+ese H%eies ae i$ !+e $e,a!i#e.
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Fo o$e !+e A(ended !o(plaint "o$!ai$ed $o "lea &a"!%al alle,a!io$ o$ w+i"+ !o pedi"a!e !+e appli"a!io$ o& A!i"les 4<55 a$d 4<5 o& !+e !ivil !ode a$d Se"!io$ (4 o& !+e !orporation !ode. Al!+o%,+ !+e !%s! ela!io$s+ip s%pposedly aose &om Co%a$,"o?s bei$, a$ o&&i"e a$d membe o& !+e oad o& @ie"!os o& !+e UC> !+e link be!wee$ !+is alle,ed &a"! a$d !+e boowi$,s o ad#a$"es was $o! es!ablis+ed. =o was !+ee e#ide$"e o$ !+e loa$s o boowi$,s !+ei amo%$!s !+e appo#i$, a%!+oi!y etc. T+e !+%s! o& !+e Rep%bli" !+a! !+e &%$ds wee )orro@ed o lent mi,+! e#e$ pe"l%de a$y "o$seH%e$! !%s! impli"a!io$. I$ a "o$!a"! o& loa$ o$e o& !+e pa!ies 3 creditor6 deli#es mo$ey o o!+e "o$s%mable !+i$, !o a$o!+e 3 de)tor6 o$ !+e "o$di!io$ !+a! !+e same amo%$! o& !+e same 2i$d a$d H%ali!y s+all be paid. Owi$, !o !+e "o$s%mable $a!%e o& !+e !+i$, loa$ed !+e es%l!i$, d%!y o& !+e boowe i$ a "o$!a"! o& loa$ is to pay, $o! to return, !o !+e "edi!o o le$de !+e #ey !+i$, loa$ed. T+is e9plai$s w+y !+e ow$es+ip o& !+e !+i$, loa$ed is !a$s&eed !o !+e deb!o %po$ pe&e"!io$ o& !+e "o$!a"!. Ow$es+ip o& !+e !+i$, loa$ed +a#i$, !a$s&eed !+e deb!o e$oys all !+e i,+!s "o$&eed !o a$ ow$e o& pope!y i$"l%di$, !+e i,+! !o %se a$d e$oy 3us utendi6 !o "o$s%me !+e !+i$, by i!s %se 3 us a)utendi6 a$d !o dispose 3us disponendi6 s%be"! !o s%"+ limi!a!io$s as may be po#ided by law. E#ide$!ly !+e es%l!i$, ela!io$s+ip be!wee$ a "edi!o a$d deb!o i$ a "o$!a"! o& loa$ "a$$o! be "+aa"!ei-ed as &id%"iay. To say !+a! a ela!io$s+ip is &id%"iay w+e$ e9is!i$, laws do $o! po#ide &o s%"+ eH%ies e#ide$"e !+a! "o$&ide$"e is eposed by o$e pa!y i$ a$o!+e w+o e9e"ises domi$io$ a$d i$&l%e$"e. Abse$! a$y spe"ial &a"!s a$d "i"%ms!a$"es po#i$, a +i,+e de,ee o& espo$sibili!y a$y deali$,s be!wee$ a le$de a$d boowe ae $o! &id%"iay i$ $a!%e. T+is e9plai$s w+y &o e9ample a !%s! e"eip! !a$sa"!io$ is $o! "lassi&ied as a simple loa$ a$d is "+aa"!ei-ed as &id%"iay be"a%se !+e rust Receipts La@ 3>.@. =o. 4456 p%$is+es !+e dis+o$es!y a$d ab%se o& "o$&ide$"e i$ !+e +a$dli$, o& mo$ey o ,oods !o !+e pe%di"e o& a$o!+e e,adless o& w+e!+e !+e la!!e is !+e ow$e. ased o$ !+e &oe,oi$, a deb!o "a$ appopia!e !+e !+i$, loa$ed wi!+o%! a$y espo$sibili!y o d%!y !o +is "edi!o !o e!%$ !+e #ey !+i$, !+a! was loa$ed o !o epo! +ow !+e po"eeds wee %sed. =o "a$ +e be "ompelled !o e!%$ !+e po"eeds a$d &%i!s o& !+e loa$ &o !+ee is $o!+i$, %$de o% laws !+a! "ompel a deb!o i$ a "o$!a"! o& loa$ !o do so. As ow$e !+e deb!o "a$ dispose o& !+e !+i$, boowed a$d +is a"! will $o! be "o$sideed misappopia!io$ o& !+e !+i$,. T+e o$ly liabili!y o$ +is pa! is !o pay !+e loa$ !o,e!+e wi!+ !+e i$!ees! !+a! is ei!+e s!ip%la!ed o po#ided %$de e9is!i$, laws. Repu)lic of the
Philippines v. Sandigan)ayan, ?duardo /. !ouangco, et al., ".R. #o. $''%&-, ".R. #o. $'-+<, ".R. #o. $%2+. April $+, +$$ Mo!,a,e; implied !%s!. A$ implied !%s! aisi$, &om mo!,a,e "o$!a"!s is $o! amo$, !+e !%s! ela!io$s+ips !+e Ci#il Code e$%mea!es. T+e Code i!sel& po#ides +owe#e !+a! s%"+ lis!i$, /does $o! e9"l%de o!+es es!ablis+ed by !+e ,e$eal law o$ !%s! 9 9 9.7 U$de !+e ,e$eal pi$"iples o$ !%s! eH%i!y "o$#e!s !+e +olde o& pope!y i,+! as !%s!ee &o !+e be$e&i! o& a$o!+e i& !+e "i"%ms!a$"es o& i!s a"H%isi!io$ ma2es !+e +olde i$eli,ible /i$ 9 9 9 ,ood "o$s"ie$"e D!o +old a$d e$oy Di!.7 As implied !%s!s ae emedies a,ai$s! %$%s! e$i"+me$! !+e /o$ly poblem o& ,ea! impo!a$"e i$ !+e &ield o& "o$s!%"!i#e !%s!s is w+e!+e i$ !+e $%meo%s a$d #ayi$, &a"!%al si!%a!io$s pese$!ed 9 9 9 !+ee is a wo$,&%l +oldi$, o& pope!y a$d +e$"e a !+ea!e$ed %$%s! e$i"+me$! o& !+e de&e$da$!.7 Applyi$, !+ese pi$"iples !+is Co%! e"o,$i-ed %$"o$#e$!io$al implied !%s!s i$ "o$!a"!s i$#ol#i$, !+e p%"+ase o& +o%si$, %$i!s by o&&i"es o& !e$a$!s? asso"ia!io$s i$ bea"+ o& !+ei obli,a!io$s !+e pa!i!io$i$, o& eal!y "o$!ay !o !+e !ems o& a "ompomise a,eeme$! a$d !+e e9e"%!io$ o& a sales "o$!a"! i$di"a!i$, a b%ye dis!i$"! &om !+e po#ide o& !+e p%"+ase mo$ey. I$ all !+ese "ases !+e &omal +oldes o& !i!le wee deemed !%s!ees obli,ed !o !a$s&e !i!le !o !+e be$e&i"iaies i$ w+ose &a#o !+e !%s!s wee deemed "ea!ed. We see $o easo$ !o ba !+e e"o,$i!io$ o& !+e same obli,a!io$ i$ a mo!,a,e "o$!a"! mee!i$, !+e s!a$dads &o !+e "ea!io$ o& a$ implied !%s!. Richard ;uan 3. "a)riel =ap, Sr., ".R. #o. $%+$22. /arch <, +$$ Re!ieme$! &%$ds; !%s!. RMC was a "ompa$y !+a! se! %p a &%$d &o i!s employees "alled RMC>RF. >e!i!io$e "o$!e$ds !+a! RMC?s "los%e i$ 4'0< e$deed !+e RMC>RF oad o& T%s!ees functus officio a$d de#oid o& a%!+oi!y !o a"! o$ be+al& o& RMC>RF. I! !+%s beli!!les !+e RMC>RF oad Resol%!io$ da!ed %$e * 4''0 a%!+oi-i$, !+e elease o& !+e F%$d !o se#eal o& i!s s%pposed be$e&i"iaies. Wi!+o%! 2$ow$ "laima$!s o& !+e &%$d &o 44 yeas si$"e RMC "losed s+op i! "laims !+a! &%$d +ad /!e"+$i"ally e#e!ed7 !o a$d &omed pa! o& RMC?s asse!s. 8e$"e i! "o%ld be applied !o sa!is&y RMC?s deb!s !o >+ilba$2. T+e "o%! disa,eed wi!+ !+e pe!i!io$e i$ !+is "ase. A !%s! is a /&id%"iay ela!io$s+ip wi!+ espe"! !o pope!y w+i"+ i$#ol#es !+e e9is!e$"e o& eH%i!able d%!ies imposed %po$ !+e +olde o& !+e !i!le !o !+e pope!y !o deal wi!+ i! &o !+e be$e&i! o& a$o!+e.7 A !%s! is ei!+e e9pess o implied. E9pess !%s!s ae !+ose w+i"+ !+e die"! a$d posi!i#e a"!s o& !+e pa!ies "ea!e by some wi!i$, o deed o will o by wods e#i$"i$, a$
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ae i$depe$de$! a$d addi!io$al so%"es o& po!e"!io$ &o !+e wo2i$, ,o%p a$d es!ablis+ed &o !+ei e9"l%si#e be$e&i! a$d &o $o o!+e p%pose. 8ee w+ile !+e pla$ po#ides &o a e#esio$ o& !+e &%$d !o RMC !+is "a$$o! be do$e %$!il all !+e liabili!ies o& !+e pla$ +a#e bee$ paid. A$d w+e$ RMC "eased opea!io$s i$ 4'0< !+e &%$d be"ame liable &o !+e payme$! $o! o$ly o& !+e be$e&i!s o& H%ali&ied e!iees a! !+e !ime o& RMC?s "los%e b%! also o& !+ose w+o wee sepaa!ed &om wo2 as a "o$seH%e$"e o& !+e "los%e. /etropolitan Bank trust !o(pany, Inc. vs. he Board of rustees of Riverside /ills !orp. Provident and Retire(ent und, et al., ".R. #o. $2'-&-, Septe()er %, +$ Implied !%s!. >e!i!io$es? s%bmissio$ !+a! espo$de$!s meely +old !+e !i!le !o !+e pope!ies i$ !%s! &o !+ei pede"esso >edo is wi!+o%! mei!. >edo &ailed !o po#e by "lea a$d "o$#i$"i$, e#ide$"e !+a! !+e spo%ses Rosa%o a$d A$,eli$a ma$a,ed !+o%,+ &a%d !o +a#e !+e eal pope!ies s%be"! o& !+is "ase e,is!eed i$ !+ei $ame. I$ !+e abse$"e o& &a%d $o implied !%s! was es!ablis+ed be!wee$ >edo a$d !+e spo%ses Rosa%o a$d A$,eli$a %$de A!i"le 4<5 o& !+e =ew Ci#il Code.
9eirs Pedro e "u5(an vs. Angelina Perona and 9eirs of Rosauro e "u5(an, Bataan evelop(ent Bank and Repu)lic Planters Bank, ".R. #o. $&++'', ;uly +, +$. T%s!; "o$s!%"!i#e !%s!. I$ !+is "ase !+e espo$de$!s? pope!y was e9popia!ed %po$ pe!i!io$ o& !+e Ma"!a$BCeb% I$!e$a!io$al Aipo! A%!+oi!y &o !+e e9pa$sio$ o& !+e La+%, aipo!. 8owe#e !+a! poe"! was s+el#ed. T+e espo$de$!s so%,+! !o ep%"+ase !+e pope!y o$ !+e ,o%$d !+a! !+e p%bli" p%pose &o w+i"+ !+e e9popia!io$ was made did $o! !oo2 pla"e a$d ,o#e$me$! +ad a,eed !+a! !+ey wo%ld +a#e a i,+! !o b%y ba"2 !+e pope!y i$ s%"+ a "ase. T+e S%peme Co%! s%s!ai$ed !+e espo$de$!s obse#i$, amo$, o!+es !+a! !+e i,+! o& espo$de$!s !o ep%"+ase !+e pope!y may be e$&o"ed based o$ a "o$s!%"!i#e !%s! "o$s!i!%!ed o$ !+e pope!y +eld by !+e ,o#e$me$! i$ &a#o o& !+e &ome. I! $o!ed !+a! /actan8 !e)u International Airport Authority is "oe"! i$ s!a!i$, !+a! o$e wo%ld $o! &i$d a$ e9pess s!a!eme$! i$ !+e "ase o$ !+e e9popia!io$ po"eedi$,s !o !+e e&&e"! !+a! Fthe Cconde(nedD lot @ould return to Cthe lando@nerD or that Cthe lando@nerD had a right to repurchase the sa(e if the purpose for @hich it @as eEpropriated is ended or a)andoned or if the property @as to )e used other than as the Lahug Airport.G T+is omissio$ $o!wi!+s!a$di$, a$d w+ile !+e i$"l%sio$ o& !+is po$o%$"eme$! i$ !+e %d,me$! o& "o$dem$a!io$ wo%ld +a#e bee$ ideal s%"+ pe"isio$ is $o! absol%!ely $e"essay $o is i! &a!al !o !+e "a%se o& pe!i!io$es +eei$. =o do%b! !+e e!%$ o ep%"+ase o& !+e "o$dem$ed pope!ies o& pe!i!io$es "o%ld be eadily %s!i&ied as !+e ma$i&es! le,al e&&e"! o "o$seH%e$"e o& !+e !ial "o%!?s %$delyi$, pes%mp!io$ !+a! FLahug Airport @ill continue to )e in operationG w+e$ i! ,a$!ed !+e "omplai$! &o emi$e$! domai$ a$d !+e aipo! dis"o$!i$%ed i!s a"!i#i!ies. T+e pedi"ame$! o& pe!i!io$es i$#ol#es a "o$s!%"!i#e !%s! o$e !+a! is a2i$ !o !+e implied !%s! e&eed !o i$ A!. 4<5< o& !+e !ivil !ode, FIf an a)solute conveyance of property is (ade in order to secure the perfor(ance of an o)ligation of the grantor to@ard the grantee, a trust )y virtue of la@ is esta)lished. If the fulfill(ent of the o)ligation is offered )y the grantor @hen it )eco(es due, he (ay de(and the reconveyance of the property to hi(.G I$ !+e "ase a! ba pe!i!io$es "o$#eyed Lo!s =o. '4 a$d '*) !o !+e ,o#e$me$! wi!+ !+e la!!e obli,i$, i!sel& !o %se !+e eal!ies &o !+e e9pa$sio$ o& La+%, Aipo!; &aili$, !o 2eep i!s ba,ai$ !+e ,o#e$me$! "a$ be "ompelled by pe!i!io$es !o e"o$#ey !+e pa"els o& la$d !o !+em o!+ewise pe!i!io$es wo%ld be de$ied !+e %se o& !+ei pope!ies %po$ a s!a!e o& a&&ais !+a! was $o! "o$"ei#ed $o "o$!empla!ed w+e$ !+e e9popia!io$ was a%!+oi-ed. Al!+o%,+ !+e symme!y be!wee$ !+e i$s!a$! "ase a$d !+e si!%a!io$ "o$!empla!ed by A!. 4<5< is $o! pe&e"! !+e po#isio$ is %$do%b!edly appli"able. Fo as e9plai$ed by a$ e9pe! o$ !+e law o& !%s!s: Fhe only pro)le( of great i(portance in the field of constructive trust is to decide @hether in the nu(erous and varying fact situations presented to the courts there is a @rongful holding of property and hence a threatened unust enrich(ent of the defendant.G Co$s!%"!i#e !%s!s ae &i"!io$s o& eH%i!y w+i"+ ae bo%$d by $o %$yieldi$, &om%la w+e$ !+ey ae %sed by "o%!s as de#i"es !o emedy a$y si!%a!io$ i$ w+i"+ !+e +olde o& le,al !i!le may $o! i$ ,ood "o$s"ie$"e e!ai$ !+e be$e&i"ial i$!ees!. I$ "o$s!%"!i#e !%s!s !+e aa$,eme$! is !empoay a$d passi#e i$ w+i"+ !+e !%s!ee?s sole d%!y is !o !a$s&e !+e !i!le a$d possessio$ o#e !+e pope!y !o !+e plai$!i&&Bbe$e&i"iay. O& "o%se !+e F@ronged party seeking the aid of a court of equity in esta)lishing a constructive trust (ust hi(self do equity.G A""odi$,ly !+e "o%! will e9e"ise i!s dis"e!io$ i$ de"idi$, w+a! a"!s ae eH%ied o& !+e plai$!i&&Bbe$e&i"iay as "o$di!io$s pe"ede$! !o ob!ai$i$, s%"+ de"ee a$d +as !+e obli,a!io$ !o eimb%se !+e !%s!ee !+e "o$sidea!io$ e"ei#ed &om !+e la!!e %s! as !+e plai$!i&&Bbe$e&i"iay wo%ld i& +e po"eeded o$ !+e !+eoy o& es"issio$. I$ !+e ,ood %d,me$! o& !+e "o%! !+e !%s!ee may also be paid !+e $e"essay e9pe$ses +e may +a#e i$"%ed i$ s%s!ai$i$, !+e pope!y +is &i9ed "os!s &o impo#eme$!s !+eeo$ a$d !+e mo$e!ay #al%e o& +is se#i"es i$ ma$a,i$, !+e pope!y !o !+e e9!e$! !+a! plai$!i&&Bbe$e&i"iay will se"%e a be$e&i! &om +is a"!s. T+e i,+!s a$d obli,a!io$s be!wee$ !+e "o$s!%"!i#e !%s!ee a$d !+e be$e&i"iay i$ !+is "ase Go#e$me$! a$d !+e pope!y ow$es o#e !+e la$ds ae e"+oed i$ A!. 44') o& !+e !ivil !ode, Fhen the conditions have for their purpose the eEtinguish(ent of an o)ligation to give, the parties, upon the fulfill(ent of said conditions shall return to each other @hatthe have receivedE E E Inca se o the loss deterioration ori( rove(ent o the thin the rovisions
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SALE Co$!a"!s; do%ble sales; possessio$; a"!%al a$d p+ysi"al deli#ey. A do%ble sale "alls &o !+e appli"a!io$ o& !+e %les i$ A!i"le 45<< o& !+e Ci#il Code !o wi!: I& !+e same !+i$, s+o%ld +a#e bee$ sold !o di&&ee$! #e$dees !+e ow$es+ip s+all be !a$s&eed !o !+e peso$ w+o may +a#e &is! !a2e$ possessio$ !+eeo& i$ ,ood &ai!+ i& i! s+o%ld be mo#able pope!y. S+o%ld i! be immo#able pope!y !+e ow$es+ip s+all belo$, !o !+e peso$ a"H%ii$, i! w+o i$ ,ood &ai!+ &is! e"oded i! i$ !+e Re,is!y o& >ope!y. S+o%ld !+ee be $o i$s"ip!io$ !+e ow$es+ip s+all pe!ai$ !o !+e peso$ w+o i$ ,ood &ai!+ was &is! i$ !+e possessio$; a$d i$ !+e abse$"e !+eeo& !o !+e peso$ w+o pese$!s !+e oldes! !i!le po#ided !+ee is ,ood &ai!+. %isp%de$"e +as i$!epe!ed possessio$ i$ A!i"le 45<< o& !+e Ci#il Code !o mea$ bo!+ a"!%al p+ysi"al deli#ey a$d "o$s!%"!i#e deli#ey. A"!%al deli#ey o& a !+i$, sold o""%s w+e$ i! is pla"ed %$de !+e "o$!ol a$d possessio$ o& !+e #e$dee. @eli#ey o& a !+i$, sold may also be made "o$s!%"!i#ely. A!i"le 4<'0 o& !+e Ci#il Code s!a!es !+a!: W+e$ !+e sale is made !+o%,+ a p%bli" i$s!%me$! !+e e9e"%!io$ !+eeo& s+all be eH%i#ale$! !o !+e deli#ey o& !+e !+i$, w+i"+ is !+e obe"! o& !+e "o$!a"! i& &om !+e deed !+e "o$!ay does $o! appea o "a$$o! "lealy be i$&eed. he Ro(an !atholic !hurch vs. Pante; G.R. =o. 4K<440 Apil 44 *)4*. Sale; es"issio$ &o bea"+ o& obli,a!io$ !o deli#e; "o$s!%"!i#e deli#ey e9e"%!io$ o& p%bli" i$s!%me$!. A pa!y is e$!i!led !o dema$d &o !+e es"issio$ o& !+ei "o$!a"! &o !+e &ail%e !o deli#e !+e p+ysi"al possessio$ o& !+e s%be"! pope!y a$d !+e "e!i&i"a!e o& !i!le "o#ei$, !+e same $o!wi!+s!a$di$, !+e abse$"e o& s!ip%la!io$s i$ !+e a,eeme$! e9pessly i$di"a!i$, !+e "o$seH%e$"es o& s%"+ omissio$ p%s%a$! !o A!i"le 44'4 o& !+e =CC w+i"+ s!a!es !+a! /!+e powe !o es"i$d obli,a!io$s is implied i$ e"ipo"al o$es i$ "ase o$e o& !+e obli,os s+o%ld $o! "omply wi!+ w+a! is i$"%mbe$! %po$ +im.7 A!i"le 4<'0 o& !+e =CC ,e$eally "o$sides !+e e9e"%!io$ o& a p%bli" i$s!%me$! as "o$s!%"!i#e deli#ey by !+e selle !o !+e b%ye o& !+e pope!y s%be"! o& a "o$!a"! o& sale. T+e "ase a! ba +owe#e &alls amo$, !+e e9"ep!io$s !o !+e &oe,oi$, %le si$"e a mee pes%mp!i#e a$d $o! "o$"l%si#e deli#ey is "ea!ed as !+e espo$de$! &ailed !o !a2e ma!eial possessio$ o& !+e s%be"! pope!y. T+ee is symboli" deli#ey o& !+e pope!y s%be"! o& !+e sale by !+e e9e"%!io$ o& !+e p%bli" i$s!%me$! %$less &om !+e e9pess !ems o& !+e i$s!%me$! o by "lea i$&ee$"e !+ee&om !+is was $o! !+e i$!e$!io$ o& !+e pa!ies. S%"+ wo%ld be !+e "ase &o i$s!a$"e w+ee !+e #e$do +as $o "o$!ol o#e !+e !+i$, sold a! !+e mome$! o& !+e sale a$d !+ee&oe i!s ma!eial deli#ey "o%ld $o! +a#e bee$ made. As a ,e$eal %le !+e e9e"%!io$ o& a p%bli" i$s!%me$! amo%$!s !o a "o$s!%"!i#e deli#ey o& !+e !+i$, s%be"! o& a "o$!a"! o& sale. 8owe#e e9"ep!io$s e9is! amo$, w+i"+ is w+e$ mee pes%mp!i#e a$d $o! "o$"l%si#e deli#ey is "ea!ed i$ "ases w+ee !+e b%ye &ails !o !a2e ma!eial possessio$ o& !+e s%be"! o& sale. A peso$ w+o does $o! +a#e a"!%al possessio$ o& !+e !+i$, sold "a$$o! !a$s&e "o$s!%"!i#e possessio$ by !+e e9e"%!io$ a$d deli#ey o& a p%bli" i$s!%me$!. 0illa(ar vs. /angaoil; G.R. =o. 4004 Apil 44 *)4*. Sale; "o$!a"! o& sale #s. "o$!a"! !o sell; $o es"issio$ i$ "o$!a"! !o sell. T+e s%be"! @eed o& Co$di!io$al Sale wi!+ Ass%mp!io$ o& Mo!,a,e e$!eed i$!o by a$d amo$, !+e !wo pa!ies a$d FSL a$2 o$=o#embe * 4'') is a "o$!a"! !o sell a$d $o! a "o$!a"! o& sale. T+e s%be"! "o$!a"! was "oe"!ly "lassi&ied as a "o$!a"! !o sell based o$ !+e &ollowi$, pe!i$e$! s!ip%la!io$s: 0. T+a! !+e !i!le a$d ow$es+ip o& !+e s%be"! eal pope!ies s+all emai$ wi!+ !+e Fis! >a!y %$!il !+e &%ll payme$! o& !+e Se"o$d >a!y o& !+e bala$"e o& !+e p%"+ase pi"e a$d liH%ida!io$ o& !+e mo!,a,e obli,a!io$ o& ₱*)))))).)). >e$di$, payme$! o& !+e bala$"e o& !+e p%"+ase pi"e a$d liH%ida!io$ o& !+e mo!,a,e obli,a!io$ !+a! was ass%med by !+e Se"o$d >a!y !+e Se"o$d >a!y s+all $o! sell !a$s&e a$d "o$#ey a$d o!+ewise e$"%mbe !+e s%be"! eal pope!ies wi!+o%! !+e wi!!e$ "o$se$! o& !+e Fis! a$d T+id >a!y. '. T+a! %po$ &%ll payme$! by !+e Se"o$d >a!y o& !+e &%ll bala$"e o& !+e p%"+ase pi"e a$d !+e ass%med mo!,a,e obli,a!io$ +eei$ me$!io$ed !+e T+id >a!y s+all iss%e !+e "oespo$di$, @eed o& Ca$"ella!io$ o& Mo!,a,e a$d !+e Fis! >a!y s+all e9e"%!e !+e "oespo$di$, @eed o& Absol%!e Sale i$ &a#o o& !+e Se"o$d >a!y. ased o$ !+e abo#e po#isio$s !+e !i!le a$d ow$es+ip o& !+e s%be"! pope!ies emai$s wi!+ !+e pe!i!io$e %$!il !+e
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A""odi$,ly !+e pe!i!io$e?s obli,a!io$ !o sell !+e s%be"! pope!ies be"omes dema$dable o$ly %po$ !+e +appe$i$, o& !+e posi!i#e s%spe$si#e "o$di!io$ w+i"+ is !+e espo$de$!?s &%ll payme$! o& !+e p%"+ase pi"e. Wi!+o%! espo$de$!?s &%ll payme$! !+ee "a$ be $o bea"+ o& "o$!a"! !o spea2 o& be"a%se pe!i!io$e +as $o obli,a!io$ ye! !o !%$ o#e !+e !i!le. Respo$de$!?s &ail%e !o pay i$ &%ll !+e p%"+ase pi"e is $o! !+e bea"+ o& "o$!a"! "o$!empla!ed %$de A!i"le 44'4 o& !+e =ew Ci#il Code b%! a!+e %s! a$ e#e$! !+a! pe#e$!s !+e pe!i!io$e &om bei$, bo%$d !o "o$#ey !i!le !o !+e espo$de$!. /ila A. Reyes v. 0ictoria . uparan, G.R. =o. 400)<. %$e 4 *)44 Sale; i$$o"e$! p%"+ase &o #al%e. T+e emai$i$, ba !o !+e e"o#ey by !+e espo$de$!s o& !+e e9"ess aea +eld by A!!y. Te"so$ is !+e pi$"iple o& a$ i$$o"e$! p%"+ase &o #al%e o& la$d %$de !+e Toe$s Sys!em o& Re,is!a!io$. T+e pe!i!io$es "laim !+a! !+ey ae )ona fide p%"+ases o& !+e e$!ie $i$e +%$ded si9!yB&o% 3'<6 sH%ae me!es o& la$d "o#eed by Lo! *40'Bwi!+ A%oa meely elyi$, o$ !+e s!e$,!+ o& TCT =o. TB<(( i$ !+e $ame o& Walde!%des w+ile A!!y. Te"so$ pla"i$, "o$&ide$"e i$ TCT =o. TB<((0 i$ !+e $ame o& A%oa. o!+ TCT =os. TB<(( a$d TB<((0 de&i$e !+e aea o& Lo! *40'B as $i$e +%$ded si9!yB&o% 3'<6 sH%ae me!es. T+e pe!i!io$es alle,e !+a! a! !+e !ime !+ey made !+ei espe"!i#e p%"+ase !+ey did $o! 2$ow o& !+e e9is!i$, pa!i!io$ o& Lo! *40' per !+e Fis! >la$ a$d !+e Fis! >a!i!io$ A,eeme$!. %! !+e po#e$ &a"!s i$di"a!e !+a! A!!y. Te"so$ 2$ew o a! !+e #ey leas! s+o%ld +a#e 2$ow$ !+a! A!!y. Fa%s!o a$d Walde!%des wee "oBow$es i$ eH%al s+ae o& Lo! *40'. T+e Co%! $o!ed !+e &ollowi$, "i"%ms!a$"es: 4.
A!!y. Te"so$ was a lo$,B!ime &ie$d a$d $ei,+bo o& !+e Fa%s!os. A!!y. Te"so$ +imsel& !es!i&ied !+a! +e "o$sideed A!!y. Fa%s!o as a ,ood &ie$d a$d e#e$ admi!!ed !+a! +e wo%ld some!imes #isi! !+e la!!e i$ +is +o%se !o play (ahong. y !+is A!!y. Te"so$ 2$ew !+a! A!!y. Fa%s!o +as a$ a"!%al i$!ees! i$ Lo! *40'.
*. A!!y. Te"so$ was !+e o$e w+o pese$!ed !+e Se"o$d >a!i!io$ A,eeme$! !o Walde!%des a$d !+e espo$de$!s; (. Walde!%des a$d !+e espo$de$!s wee $o! i$#ol#ed i$ !+e pepaa!io$ o& !+e Se"o$d >a!i!io$ A,eeme$! a$d a! !+e !ime !+ey si,$ed !+e said a,eeme$! +ad $o 2$owled,e o& !+e e9is!e$"e o& !+e Se"o$d >la$; a$d <. T+e Se"o$d >a!i!io$ A,eeme$! &ailed !o s!a!e !+e spe"i&i" aeas allo!!ed &o ea"+ "ompo$e$! o& Lo! *40' a$d made $o me$!io$ o& !+e di#isio$ poposed by !+e Se"o$d >la$. Aurora L. ecson, et al. v. /inverva, /aria, et al. all surna(ed austo and Isa)el 0da. e austo> G.R. =o. 40)0(. %$e 4 *)44 Sale; p%"+ase i$ ,ood &ai!+. A p%"+ase i$ ,ood &ai!+ is o$e w+o b%ys !+e pope!y o& a$o!+e wi!+o%! $o!i"e !+a! some o!+e peso$ +as a i,+! !o o i$!ees! i$ s%"+ pope!y a$d pays !+e &%ll a$d &ai pi"e &o i! a! !+e !ime o& s%"+ p%"+ase o be&oe +e +as $o!i"e o& !+e "laim o i$!ees! o& some o!+e peso$s i$ !+e pope!y. 8e b%ys !+e pope!y wi!+ !+e belie& !+a! !+e peso$ &om w+om +e e"ei#es !+e !+i$, was !+e ow$e a$d "o%ld "o$#ey !i!le !o !+e pope!y. 8e "a$$o! "lose +is eyes !o &a"!s !+a! s+o%ld p%! a easo$able ma$ o$ +is ,%ad a$d s!ill "laim +e a"!ed i$ ,ood &ai!+. I! is %$disp%!ed !+a! espo$de$!s wee $ei,+bos o& pe!i!io$es a$d e#e$ "oBow$es o& la$d %$de TCT =o. 050*. Respo$de$!s +a#e also deal! wi!+ !+e Tama$is i$ !+e pas! +a#i$, mo!,a,ed !+ei pope!y !o,e!+e w+e$ espo$de$!s a#ailed o& a loa$ &om !+e Go#e$me$! Se#i"e I$s%a$"e Sys!em. T+%s i! is i$"o$"ei#able &o espo$de$!s $o! !o 2$ow !+a! pe!i!io$es +ad bee$ e9e"isi$, ope$ "o$!i$%o%s a$d $o!oio%s possessio$ o#e !+e pope!y. Li2e C%- espo$de$!s s+o%ld +a#e as"e!ai$ed !+e la$d?s ide$!i!y a$d "+aa"!e ,i#e$ !+a! +o%ses wee s!a$di$, o$ !+e la$d i$ disp%!e a$d pe!i!io$es +ad bee$ leasi$, !+e same !o !e$a$!s. /aria Lourdes a(ani, et al. v. Ra(on Salvador, et al. ".R. #o. $2$*-2. April *, +$$ Sale; e9e"%!io$ o& p%bli" i$s!%me$! eH%i#ale$! !o deli#ey. A!i"le 4<'0 o& !+e Ci#il Code po#ides !+a! w+e$ !+e sale is made !+o%,+ a p%bli" i$s!%me$! !+e e9e"%!io$ !+eeo& s+all be eH%i#ale$! !o !+e deli#ey o& !+e !+i$, w+i"+ is !+e obe"! o& !+e "o$!a"! i& &om !+e deed !+e "o$!ay does $o! appea o "a$$o! "lealy be i$&eed. I$ !+e i$s!a$! "ase pe!i!io$es &ailed !o pese$! a$y e#ide$"e !o s+ow !+a! !+ey +ad $o i$!e$!io$ o& deli#ei$, !+e s%be"! lo!s !o espo$de$! w+e$ !+ey e9e"%!ed !+e said deed o& sale. 8e$"e pe!i!io$es? e9e"%!io$ o& !+e deed o& sale is !a$!amo%$! !o a deli#ey o& !+e s%be"! lo!s !o espo$de$!. T+e &a"! !+a! pe!i!io$es emai$ed i$ possessio$ o& !+e disp%!ed pope!ies does $o! po#e !+a! !+ee was $o deli#ey be"a%se as &o%$d by !+e lowe "o%!s s%"+ possessio$ is o$ly by espo$de$!?s mee !olea$"e. Anita /onasterio8Pe, et al. 3. ;ose ;uan ong, herein represented )y his Attorney8in8fact, ;ose =. 3ng G.R. =o. 454('. Ma"+ *( *)44 Sale; la"2 o& "o$sidea!io$. I! is a wellBe$!e$"+ed %le !+a! w+ee !+e deed o& sale s!a!es !+a! !+e p%"+ase pi"e +as bee$ paid b%! i$ &a"! +as $e#e bee$ paid !+e deed o& sale is $%ll a$d #oid a) initio &o la"2 o& "o$sidea!io$. Moeo#e A!i"le 4
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Sale; do%ble sale. T+e pese$! "o$!o#esy is a "lea "ase o& do%ble sale w+ee !+e selle sold o$e pope!y !o di&&ee$! b%yes &is! !o pe!i!io$e a$d la!e !o espo$de$!. I$ de!emi$i$, w+o +as a be!!e i,+! !+e ,%ideli$es se! &o!+ i$ A!i"le 45<< o& !+e Ci#il Code apply. A!i"le 45<< s!a!es: A!. 45<<. I& !+e same !+i$, s+o%ld +a#e bee$ sold !o di&&ee$! #e$dees !+e ow$es+ip s+all be !a$s&eed !o !+e peso$ w+o may +a#e &is! !a2e$ possessio$ !+eeo& i$ ,ood &ai!+ i& i! s+o%ld be mo#able pope!y. S+o%ld i! be immo#able pope!y !+e ow$es+ip s+all belo$, !o !+e peso$ a"H%ii$, i! w+o i$ ,ood &ai!+ &is! e"oded i! i$ !+e Re,is!y o& >ope!y. S+o%ld !+ee be $o i$s"ip!io$ !+e ow$es+ip s+all pe!ai$ !o !+e peso$ w+o i$ ,ood &ai!+ was &is! i$ possessio$; a$d i$ !+e abse$"e !+eeo& !o !+e peso$ w+o pese$!s !+e oldes! !i!le po#ided !+ee is ,ood &ai!+. Admi!!edly !+e !wo sales wee $o! e,is!eed wi!+ !+e Re,is!y o& >ope!y. Si$"e !+ee was $o i$s"ip!io$ !+e $e9! H%es!io$ is w+o be!wee$ pe!i!io$e a$d espo$de$! &is! !oo2 possessio$ o& !+e s%be"! pope!y i$ ,ood &ai!+. As ap!ly +eld by !+e !ial "o%! i! was espo$de$! w+o !oo2 possessio$ o& !+e s%be"! pope!y a$d !+ee&oe +as a be!!e i,+!. >e!i!io$e i$sis!s !+a! %po$ !+e e9e"%!io$ o& !+e p%bli" i$s!%me$! 3!+e $o!ai-ed deed o& sale6 s+e aleady a"H%ied possessio$ !+eeo& a$d !+%s "o$sidei$, !+a! !+e e9e"%!io$ !+eeo& !oo2 pla"e a+ead o& !+e a"!%al possessio$ by espo$de$! o& !+e s%be"! pope!y s+e +as a be!!e i,+!. T+is is i$"oe"!. I$deed !+e e9e"%!io$ o& a p%bli" i$s!%me$! s+all be eH%i#ale$! !o !+e deli#ey o& !+e !+i$, !+a! is !+e obe"! o& !+e "o$!a"!. 8owe#e !+e Co%! +as +eld !+a! !+e e9e"%!io$ o& a p%bli" i$s!%me$! ,i#es ise o$ly !o a pri(a facie pes%mp!io$ o& deli#ey. I! is deemed $e,a!ed by !+e &ail%e o& !+e #e$dee !o !a2e a"!%al possessio$ o& !+e la$d sold. olorita !. Beatingo v. Lilia Bu "asis; G.R. =o. 4K'<4. Feb%ay ' *)44. Sale; pe&e"!io$ o& "o$!a"!. As a %le a "o$!a"! is pe&e"!ed %po$ !+e mee!i$, o& !+e mi$ds o& !+e !wo pa!ies. U$de A!i"le 4. @> imposed se#eal "o$di!io$s !o i!s a""ep!a$"e a$d i! is "lea !+a! Meda$o i$deed !ied i$ ,ood &ai!+ !o "omply wi!+ !+e "o$di!io$s ,i#e$ by @> b%! %$&o!%$a!ely &ailed !o do so. 8e$"e !+ee was $o bi!+ o& a pe&e"!ed "o$!a"! o& sale be!wee$ !+e pa!ies. evelop(ent Bank of the Philippines v. Ben P. /edrano and Privati5ation /anage(ent 3ffice; G.R. =o. 4K))<. Feb%ay K *)44. Sale; "o$!a"! !o sell does $o! !a$s&e ow$es+ip; i,+!s %$de "o$!a"! !o sell. A "o$!a"! !o sell is o$e w+ee !+e pospe"!i#e selle reserves !+e !a$s&e o& !i!le !o !+e pospe"!i#e b%ye %$!il !+e +appe$i$, o& a$ e#e$! s%"+ as &%ll payme$! o& !+e p%"+ase pi"e. W+a! !+e selle obli,es +imsel& !o do is !o sell !+e s%be"! pope!y o$ly w+e$ !+e e$!ie amo%$! o& !+e p%"+ase pi"e +as aleady bee$ deli#eed !o +im. I$ o!+e wods !+e &%ll payme$! o& !+e p%"+ase pi"e pa!a2es o& a s%spe$si#e "o$di!io$ !+e $o$B&%l&illme$! o& w+i"+ pe#e$!s !+e obli,a!io$ !o sell &om aisi$, a$d !+%s ow$es+ip is e!ai$ed by !+e pospe"!i#e selle wi!+o%! &%!+e emedies by !+e pospe"!i#e b%ye. I! does $o! by i!sel& !a$s&e ow$es+ip !o !+e b%ye. =e#e!+eless i,+!s ,i#e$ %$de a Co$!a"! !o Sell m%s! s!ill be espe"!ed. A Co$!a"! !o Sell i$#ol#i$, a s%bdi#isio$ lo! is "o#eed a$d po!e"!ed by >@ '5K. O$e o& !+e po!e"!io$s a&&oded by >@ '5K !o b%yes is !+e i,+! !o +a#e +is "o$!a"! !o sell e,is!eed wi!+ !+e Re,is!e o& @eeds i$ ode !o ma2e i! bi$di$, o$ !+id pa!ies. T+e p%pose o& e,is!a!io$ is !o po!e"! !+e b%yes &om a$y &%!%e %$s"%p%lo%s !a$sa"!io$s i$#ol#i$, !+e obe"! o& !+e sale o "o$!a"! !o sello$w+e!+e !+e p%"+ase !+ee&o &%lly paid!+a! o $o!. Re,is!a!io$ o& !+e!osale "o$!a"! sell ma2es i! bi$di$, !+id pa!ies; i! se#espi"e as a $o!i"e !o+as !+e bee$ w+ole wold !+e pope!y is s%be"! !+eo pio i,+! !o o& !+e b%ye o& !+e pope!y 3%$de a "o$!a"! !o sell o a$ absol%!e sale6 a$d a$yo$e w+o wis+es !o deal wi!+ !+e said pope!y will be +eld bo%$d by s%"+ pio i,+!. W+ile @ELTA i$ !+e i$s!a$! "ase &ailed !o e,is!e E$iH%e-?s Co$!a"! !o Sell wi!+ !+e Re,is!e o& @eeds !+is &ail%e will $o! pe%di"e E$iH%e- o elie#e !+e A=N &om i!s obli,a!io$ !o espe"! E$iH%e-?s Co$!a"! !o Sell. @espi!e !+e $o$B e,is!a!io$ !+e A=N "a$$o! be "o$sideed %$de !+e "i"%ms!a$"es a$ i$$o"e$! p%"+ase &o #al%e o& Lo! < w+e$ i! a""ep!ed !+e la!!e 3!o,e!+e wi!+ o!+e assi,$ed pope!ies6 as payme$! &o @ELTA?s obli,a!io$. T+e A=N was well awae !+a! !+e assi,$ed pope!ies i$"l%di$, Lo! < wee s%bdi#isio$ lo!s a$d !+ee&oe wi!+i$ !+e p%#iew o& >@ '5K. I! 2$ew !+a! ?
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Sale; do%ble sale; b%ye i$ ,ood &ai!+. T+e H%es!io$ be&oe %s !+e$ is w+o be!wee$ pe!i!io$es a$d espo$de$!s +a#e a be!!e i,+! o#e Lo! 44BEB0BA I$ "ase o& a do%ble sale o& immo#ables ow$es+ip s+all belo$, !o 346 !+e &is! e,is!a$! i$ ,ood &ai!+; 3*6 !+e$ !+e &is! possesso i$ ,ood &ai!+; a$d 3(6 &i$ally !+e b%ye w+o i$ ,ood &ai!+ pese$!s !+e oldes! !i!le. 8owe#e mee e,is!a!io$ is $o! e$o%,+ !o "o$&e ow$es+ip. T+e law eH%ies !+a! !+e se"o$d b%ye m%s! +a#e a"H%ied a$d e,is!eed !+e immo#able pope!y i$ ,ood &ai!+. I$ ode &o !+e se"o$d b%ye !o displa"e !+e &is! b%ye !+e &ollowi$, m%s! be s+ow$: 346 !+e se"o$d b%ye m%s! s+ow !+a! +e a"!ed i$ ,ood &ai!+ 3 i.e. i$ i,$oa$"e o& !+e &is! sale a$d o& !+e &is! b%ye?s i,+!s6 &om !+e !ime o& a"H%isi!io$ %$!il !i!le is !a$s&eed !o +im by e,is!a!io$ o &aili$, e,is!a!io$ by deli#ey o& possessio$; a$d 3*6 !+e se"o$d b%ye m%s! s+ow "o$!i$%i$, ,ood &ai!+ a$d i$$o"e$"e o la"2 o& 2$owled,e o& !+e &is! sale %$!il +is "o$!a"! ipe$s i$!o &%ll ow$es+ip !+o%,+ pio e,is!a!io$ as po#ided by law. O$e is "o$sideed a p%"+ase i$ ,ood &ai!+ i& +e b%ys !+e pope!y wi!+o%! $o!i"e !+a! some o!+e peso$ +as a i,+! !o o i$!ees! i$ s%"+ WellBse!!led pope!y a$dispays pi"e be&oe +e +as $o!i"e o& !+e ad#esela$d "laims i$!ees! o& !+e a$o!+e peso$ i$ !+e same pope!y. !+e i!s %le&ai !+a! e#ey peso$ deali$, wi!+ e,is!eed maya$d sa&ely ely o$ "oe"!$ess o& !+e "e!i&i"a!e o& !i!le iss%ed !+ee&o a$d !+e law will i$ $o way obli,e +im !o ,o beyo$d !+e "e!i&i"a!e !o de!emi$e !+e "o$di!io$ o& !+e pope!y. 8owe#e !+is %le s+all $o! apply w+e$ !+e pa!y +as a"!%al 2$owled,e o& &a"!s a$d "i"%ms!a$"es !+a! wo%ld impel a easo$ably "a%!io%s ma$ !o ma2e s%"+ i$H%iy o w+e$ !+e p%"+ase +as 2$owled,e o& a de&e"! o !+e la"2 o& !i!le i$ +is #e$do o o& s%&&i"ie$! &a"!s !o i$d%"e a easo$ably p%de$! ma$ !o i$H%ie i$!o !+e s!a!%s o& !+e !i!le o& !+e pope!y i$ li!i,a!io$. 8is mee e&%sal !o belie#e !+a! s%"+ de&e"! e9is!s o +is will&%l "losi$, o& +is eyes !o !+e possibili!y o& !+e e9is!e$"e o& a de&e"! i$ +is #e$do?s !i!le will $o! ma2e +im a$ i$$o"e$! p%"+ase &o #al%e i& i! la!e de#elops !+a! !+e !i!le was i$ &a"! de&e"!i#e a$d i! appeas !+a! +e +ad s%"+ $o!i"e o& !+e de&e"! +ad +e a"!ed wi!+ !+a! meas%e o& pe"a%!io$ w+i"+ may easo$ably be eH%ied o& a p%de$! ma$ i$ a li2e si!%a!io$. I$ !+e "ase a! ba bo!+ !+e !ial "o%! a$d CA &o%$d !+a! pe!i!io$es wee $o! b%yes a$d e,is!a$!s i$ ,ood &ai!+ owi$, !o !+e &a"! !+a! Ma,alla$es "o$s!%"!ed a &e$"e a$d small +%! o$ !+e s%be"! lo! a$d +as bee$ i$ a"!%al p+ysi"al possessio$ si$"e 4'K'. 8e$"e pe!i!io$es wee awae o s+o%ld +a#e bee$ awae o& Ma,alla$es? pio p+ysi"al possessio$ a$d "laim o& ow$es+ip o#e !+e s%be"! lo! w+e$ !+ey #isi!ed !+e lo! o$ se#eal o""asio$s pio !o !+e sale !+eeo&. Spouses Ra(y and 6enaida Pudadera vs. Ireneo /agallanes and the late aisy eresa cortel /agallanes, su)stituted )y her children, #elly /. /arque5, et al.> ".R. #o. $22<, 3cto)er $%, +$. Sale; "o$!a"! !o sell #es%s "o$!a"! o& sale. Re,adi$, !+e i,+! !o "a$"el !+e "o$!a"! &o $o$Bpayme$! o& a$ i$s!allme$! !+ee is $eed !o i$i!ially de!emi$e i& w+a! !+e pa!ies +ad was a "o$!a"! o& sale o a "o$!a"! !o sell. I$ a "o$!a"! o& sale !+e !i!le !o !+e pope!y passes !o !+e b%ye %po$ !+e deli#ey o& !+e !+i$, sold. I$ a "o$!a"! !o sell o$ !+e o!+e +a$d !+e ow$es+ip is by a,eeme$! e!ai$ed by !+e selle a$d is $o! !o pass !o !+e #e$dee %$!il &%ll payme$! o& !+e p%"+ase pi"e. I$ !+e "o$!a"! o& sale !+e b%ye?s $o$Bpayme$! o& !+e pi"e is a $e,a!i#e esol%!oy "o$di!io$; i$ !+e "o$!a"! !o sell !+e b%ye?s &%ll payme$! o& !+e pi"e is a posi!i#e s%spe$si#e "o$di!io$ !o !+e "omi$, i$!o e&&e"! o& !+e a,eeme$!. I$ !+e &is! "ase !+e selle +as los! a$d "a$$o! e"o#e !+e ow$es+ip o& !+e pope!y %$less +e !a2es a"!io$ !o se! aside !+e "o$!a"! o& sale. I$ !+e se"o$d "ase !+e !i!le simply emai$s i$ !+e selle i& !+e b%ye does $o! "omply wi!+ !+e "o$di!io$ pe"ede$! o& ma2i$, payme$! a! !+e !ime spe"i&ied i$ !+e "o$!a"!. 8ee i! is H%i!e e#ide$! !+a! !+e "o$!a"! i$#ol#ed was o$e o& a "o$!a"! !o sell si$"e !+e A!ie$-as as selles wee !o e!ai$ !i!le o& ow$es+ip !o !+e la$d %$!il espo$de$! Espidol !+e b%ye +as paid !+e a,eed pi"e. Admi!!edly Espidol was %$able !o pay !+e se"o$d i$s!allme$! o& >4K5)))).)) !+a! &ell d%e i$ @e"embe *))*. T+a! payme$! was a posi!i#e s%spe$si#e "o$di!io$ &ail%e o& w+i"+ was $o! e,aded a bea"+ i$ !+e se$se !+a! !+ee "a$ be $o es"issio$ o& a$ obli,a!io$ 3!o !%$ o#e !i!le6 !+a! did $o! ye! e9is! si$"e !+e s%spe$si#e "o$di!io$ +ad $o! !a2e$ pla"e. Si$"e !+e s%spe$si#e "o$di!io$ did $o! aise !+e pa!ies s!ood as i& !+e "o$di!io$al obli,a!io$ +ad $e#e e9is!ed. I! s+o%ld be $o!ed !+a! !+e "o$di!io$ is $o! a p%e s%spe$si#e o$e. Al!+o%,+ !+e A!ie$-as +ad $o obli,a!io$ as ye! !o !%$ o#e !i!le pe$di$, !+e o""%e$"e o& !+e s%spe$si#e "o$di!io$ i! was impli"i! !+a! !+ey wee %$de immedia!e obli,a!io$ $o! !o sell !+e la$d !o a$o!+e i$ !+e mea$!ime. %! w+e$ Espidol &ailed !o pay wi!+i$ !+e peiod po#ided i$ !+ei a,eeme$! !+e A!ie$-as wee elie#ed o& a$y obli,a!io$ !o +old !+e pope!y i$ ese#e &o +im. T+e %li$, o& !+e lowe "o%!s !+a! despi!e !+e de&a%l! i$ payme$! !+e A!ie$-as emai$ed bo%$d !o !+is day !o sell !+e pope!y !o Espidol o$"e +e is able !o aise !+e mo$ey a$d pay is H%i!e %$%s!i&ied. Sps. Paulino Atien5a and Rufina Atien5a vs. o(ingo P. ?spidol, ".R. #o. $%''&, August $$, +$. Sale; i$$o"e$! p%"+ase. A peso$ is "o$sideed a$ i$$o"e$! p%"+ase i$ ,ood &ai!+ w+e$ +e b%ys !+e pope!y o& a$o!+e i!+o%! $o!i"e !+a! some o!+e eso$ +as a i +! o a$ i$!ees! i$ s%"+ o e! a$d a s a &%ll i"e &o !+e same a! !+e !ime
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e9"ep!io$s is pese$! +owe#e i$ !+e "ase a! ba. T+ee is !+%s $o "ompelli$, easo$ !o o#e!%$ !+e &a"!%al &i$di$,s o& !+e !ial "o%! w+i"+ was a&&imed by !+e Co%! o& Appeals espe"!i$, pe!i!io$es? $o!i"e o& espo$de$!?s possessio$. As e&le"!ed ealie >alma a ela!i#e o& pe!i!io$e Cesaia a"2$owled,ed #ia !wo do"%me$!s +a#i$, bee$ allowed by ose&a espo$de$!?s mo!+e !o o""%py !+e la$d. 8is !es!imo$y !+ee&oe !+a! +e so%,+! !+e pemissio$ o& !+e Samso$ +eis a$d $o! &om ose&a m%s! ,i#e way !o do"%me$!ay e#ide$"e. I$ a$o!+e #ei$ as $o!ed abo#e pe!i!io$es li#e i$ !+e #i"i$i!y o& !+e la$d w+i"+ was &e$"ed a$d pla$!ed !o &%i! beai$, !ees. As s%"+ !+ey wee p%! o$ $o!i"e !+a! !+e la$d was possessed by someo$e. W+ee !+e la$d s%be"! o& sale is i$ possessio$ o& a peso$ o!+e !+a$ !+e #e$do p%de$"e di"!a!es !+a! !+e #e$dee s+o%ld ,o beyo$d !+e "e!i&i"a!e o& !i!le. Abse$! s%"+ i$#es!i,a!io$ ,ood &ai!+ "a$$o! be pes%med. Spouses Braulio #avarro and !esaria Sindao vs. Perla Rico "o ".R. #o. $%2+%%. August -,
+$ Sale; $o!i"e o& "a$"ella!io$ &o a"!io$ !o de"lae "o$!a"! $o$Be9is!e$!. =o!i"e o& "a$"ella!io$ by $o!aial a"! $eed $o! be ,i#e$ be&oe !+e "o$!a"! be!wee$ !+e A!ie$-as a$d espo$de$! Espidol may be #alidly de"laed $o$Be9is!e$!. R.A. 55* w+i"+ ma$da!ed !+e ,i#i$, o& s%"+ $o!i"e does $o! apply !o !+is "ase. T+e "a$"ella!io$ e$#isio$ed i$ !+a! law pe!ai$s !o e9!a%di"ial "a$"ella!io$ o o$e do$e o%!side o& "o%! w+i"+ is $o! !+e mode a#ailed o& +ee. T+e A!ie$-as "ame !o "o%! !o see2 !+e de"laa!io$ o& i!s obli,a!io$ %$de !+e "o$!a"! !o sell "a$"elled. T+%s !+e abse$"e o& !+a! $o!i"e does $o! ba !+e &ili$, o& !+ei a"!io$. Sps. Paulino Atien5a and Rufina Atien5a vs. o(ingo P. ?spidol, ".R. #o. $%''&, August $$, +$. A,e$"y; sale o& la$d by a$ %$a%!+oi-ed a,e$!. Respo$de$! sold la$d ow$ed by +e da%,+!e wi!+o%! a$y wi!!e$ a%!+oi!y. A!i"le 40K< o& !+e Ci#il Code e9pli"i!ly eH%ies a wi!!e$ a%!+oi!y be&oe a$ a,e$! "a$ sell a$ immo#able pope!y. ased o$ a e#iew o& !+e e"ods !+ee is absol%!ely $o poo& o& espo$de$!?s wi!!e$ a%!+oi!y !o sell !+e lo! !o pe!i!io$es. I$ &a"! d%i$, !+e peB!ial "o$&ee$"e pe!i!io$es admi!!ed !+a! a! !+e !ime o& !+e $e,o!ia!io$ &o !+e sale o& !+e lo! pe!i!io$es wee o& !+e belie& !+a! espo$de$! was !+e ow$e o& lo!. Co$seH%e$!ly !+e sale o& !+e lo! by espo$de$! w+o did $o! +a#e a wi!!e$ a%!+oi!y &om !+e eal ow$e is #oid. A #oid "o$!a"! pod%"es $o e&&e"! ei!+e a,ai$s! o i$ &a#o o& a$yo$e a$d "a$$o! be a!i&ied. Sps. ;oselina Alcantara and Antonio Alcantara, et al. vs. Brigida L. #ido, as attorney8in8fact of Revelen Srivastava, ".R. #o. $'&$<<, April $-, +$. Sale; "o$!a"! !o sell la$d; payme$! o& pi"e; Ma"eda Law. Co$!a"!s ae law be!wee$ !+e pa!ies a$d !+ey ae bo%$d by i!s s!ip%la!io$s. I! is "lea &om !+e abo#eBH%o!ed po#isio$s !+a! !+e pa!ies i$!e$ded !+ei a,eeme$! !o be a Co$!a"! !o Sell: @ela C%- e!ai$s ow$es+ip o& !+e s%be"! la$ds a$d does $o! +a#e !+e obli,a!io$ !o e9e"%!e a @eed o& Absol%!e Sale %$!il pe!i!io$es? payme$! o& !+e &%ll p%"+ase pi"e. >ayme$! o& !+e pi"e is a posi!i#e s%spe$si#e "o$di!io$ &ail%e o& w+i"+ is $o! a bea"+ b%! a$ e#e$! !+a! pe#e$!s !+e obli,a!io$ o& !+e #e$do !o "o$#ey !i!le &om be"omi$, e&&e"!i#e. S!i"!ly spea2i$, !+ee "a$ be $o es"issio$ o esol%!io$ o& a$ obli,a!io$ !+a! is s!ill $o$Be9is!e$! d%e !o !+e $o$B+appe$i$, o& !+e s%spe$si#e "o$di!io$. @ela C%- is !+%s $o! obli,ed !o e9e"%!e a @eed o& Absol%!e Sale i$ pe!i!io$es? &a#o be"a%se o& pe!i!io$es? &ail%e !o ma2e &%ll payme$! o$ !+e s!ip%la!ed da!e. T+e !ial "o%! eed i$ applyi$, R.A. 55* o !+e Ma"eda Law !o !+e pese$! "ase. T+e Ma"eda Law applies !o "o$!a"!s o& sale o& eal es!a!e o$ i$s!allme$! payme$!s i$"l%di$, eside$!ial "o$domi$i%m apa!me$!s b%! e9"l%di$, i$d%s!ial lo!s "omme"ial b%ildi$,s a$d sales !o !e$a$!s. T+e s%be"! la$ds "ompisi$, &i#e pa"els a$d a,,e,a!i$, ')*0 sH%ae me!es do $o! "ompise eside$!ial eal es!a!e wi!+i$ !+e "o$!empla!io$ o& !+e Ma"eda Law. Moeo#e e#e$ i& we apply !+e Ma"eda Law !o !+e pese$! "ase pe!i!io$es? o&&e o& payme$! !o @ela C%- was made a yea a$d a +al& a&!e !+e s!ip%la!ed da!e. T+is is beyo$d !+e si9!yBday ,a"e peiod %$de Se"!io$ < o& !+e Ma"eda Law. >e!i!io$es s!ill "a$$o! %se !+e se"o$d se$!e$"e o& Se"!io$ < o& !+e Ma"eda Law a,ai$s! @ela C%- &o @ela C%-?s alle,ed &ail%e !o ,i#e a$ e&&e"!i#e $o!i"e o& "a$"ella!io$ o dema$d &o es"issio$ be"a%se @ela C%- meely se$! !+e $o!i"e !o !+e addess s%pplied by pe!i!io$es i$ !+e Co$!a"! !o Sell. I! is %$de$iable !+a! pe!i!io$es &ailed !o pay !+e bala$"e o& !+e p%"+ase pi"e o$ !+e s!ip%la!ed da!e o& !+e Co$!a"! !o Sell. T+%s @ela C%- is wi!+i$ +e i,+!s !o sell !+e s%be"! la$ds !o a!olome. =ei!+e @ela C%- $o a!olome "a$ be said !o be i$ bad &ai!+. Spouses austino and ;osefina "arcia, et al. vs. !ourt of Appeals, et al., ".R. #o. $2+<', April +<, +$. Sale; b%ye i$ ,ood &ai!+. T+e pa!y I@RI was $o! a b%ye i$ ,ood &ai!+. I! +ad a"!%al 2$owled,e o& &a"!s a$d "i"%ms!a$"es w+i"+ s+o%ld impel a easo$ably "a%!io%s peso$ !o ma2e &%!+e i$H%iies abo%! !+e #e$do?s !i!le !o !+e pope!y. T+e epese$!a!i#e o& I@RI !es!i&ied !+a! +e 2$ew abo%! !+e e9is!e$"e o& !+e $o!i"e o& lis pe$de$s o$ !+e pope!y s%be"! o& !+e sale a$d !+e le,al sepaa!io$ "ase !+a! +ad bee$ &iled. T+%s I@RI "o%ld $o! &ei,$ i,$oa$"e o& !+e pope!y bei$, "o$%,al.
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do$a!io$ o& !+e pope!y !o Wi$i&ed was wi!+o%! !+e "o$se$! o& El#ia. U$de A!i"le 4*5 o& !+e Family Code a "o$%,al pope!y "a$$o! be do$a!ed by o$e spo%se wi!+o%! !+e "o$se$! o& !+e o!+e spo%se. Clealy I@RI was $o! a b%ye i$ ,ood &ai!+. /ario Siochi vs. Alfredo "o5on, et al.7Inter8i(ensional Realty, Inc. 0s. /ario Siochi, et al., ".R. #o. $'--7".R. #o. $'--22, /arch $%, +$. Sale; la$d; i$$o"e$! p%"+ase &o #al%e. T+is "ase s!emmed &om a "o$&li"! o& ow$es+ip 3es%l!i$, &om m%l!iple !a$sa"!io$s6 o#e Lo! 40)*BA. Al!+o%,+ i! was "o$!i$%o%sly ope$ly a$d ad#esely possessed by Sa$!ia,o Eboa !+e pope!y was mis!a2e$ly i$"l%ded by C+a"o$ E$!epises i$ i!s appli"a!io$ &o oi,i$al e,is!a!io$. As a es%l! li!i,a!io$ aose be!wee$ espo$de$!s 3!+e +eis o& Eboa6 a$d C+a"o$ E$!epises. @%i$, !+e pe$de$"y o& !+is li!i,a!io$ !+e +eis o& Eboa sold !+e e$!ie Lo! 40)*BA !o !+ei "oB+eis !+e >a"ados. O$ !+e same day !+e >a"ados assi,$ed !+e pope!y !o @i,$o Roa maied !o pe!i!io$e Lydia Roa. TCT =o. TB*<<00 was iss%ed i$ !+e $ame o& @i,$o Roa. Mea$w+ile !+e "ase be!wee$ C+a"o$ a$do&!+e was=ew de"ided &a#oiss%ed o& !+e a$d la!!e. easo$ o& !+eea&!e !+is de"isio$ =o. TB <0)'K was iss%edE$!epises i$ !+e $ame !+e+eis +eiso&o&Eboa Eboa. TCTsi$wee !+eylo!s wee soldTCT !o #aio%s espo$de$!s w+i"+ es%l!ed i$ !+e iss%a$"e o& $ew TCTs i$ !+e $ames o& !+e espe"!i#e #e$dees. All !+ese !a$sa"!io$s o""%ed wi!+o%! pe!i!io$e?s 2$owled,e a$d "o$se$!. I$ !+e "ase be&oe !+e S%peme Co%! !+e pe!i!io$e so%,+! !+a! espo$de$!s be de"laed as $o! i$$o"e$! p%"+ases &o #al%e a$d !+a! !+e s%be"! pope!ies be ad%di"a!ed i$ +e &a#o. T+e "o%! +owe#e %led !+a! espo$de$!s ae i$$o"e$! p%"+ases &o #al%e. =o$e!+eless wi!+o%! %$demi$i$, !+e easo$ be+i$d !+is do"!i$e 3o& po!e"!i$, i$$o"e$! p%"+ases &o #al%e6 !+e "o%! w+e$ o$ !o /+old !+a! pe!i!io$e is e$!i!led !o !+e pope!y &ollowi$, Sanche5 v. OuinioH I$ !+is "ase as i$ Sanche5 pe!i!io$e?s !i!le was #alidly iss%ed a$d +ad bee$ %$dis!%bed &o 4) yeas be&oe !+e !i!le o& espo$de$!s? pede"esso 3!+e Eboa +eis6 was iss%ed. >e!i!io$e $e#e eli$H%is+ed +e !i!le !o espo$de$!s o !o a$ybody else. S+e !+ee&oe possessed a s%peio i,+! o#e !+ose o& espo$de$!s $o!wi!+s!a$di$, !+e &a"! !+a! espo$de$!s wee i$$o"e$! p%"+ases &o #al%e. Moeo#e !+e +eis o& Eboa sold a$d "o$#eyed !+ei i,+!s !o a$d i$!ees!s i$ Lo! 40)*BA !o !+e spo%ses >a"ado w+o assi,$ed !+e pope!y !o !+e +%sba$d o& pe!i!io$e as ealy as %$e ( 4'KK. Fom !+e$ o$ !+e +eis o& Eboa los! all !+ei i,+!s a$d i$!ees! o#e !+e pope!y. I$deed !+e +eis o& Eboa e#e$ "o$&imed !+e sale !o ose&a a$d !+e assi,$me$! a$d wai#e o& i,+!s i$ &a#o o& pe!i!io$e?s +%sba$d i$ a$ i$s!%me$! da!ed a$%ay (4 4'0(. T+%s !+e +eis o& Eboa +ad $o!+i$, !o ad%di"a!e amo$, !+emsel#es o$ O"!obe 0 4'0K. =ei!+e did !+ey +a#e a$y!+i$, !o !a$s&e !o !+e #e$dees o s%""essosBi$Bi$!ees!. As s%"+ !+e !a$s&eees o& !+e +eis o& Eboa a"H%ied $o be!!e i,+! !+a$ !+a! o& !+e !a$s&eos. T+e spi$, "a$$o! ise +i,+e !+a$ i!s so%"e.7 Lydia L. Roa 0s. 9eirs of Santiago ?)ora, et al., ".R. #o. $'$$<2,
/arch $&, +$. Sale; di&&ee$"e be!wee$ "o$!a"! o& sale a$d "o$!a"! !o sell. I$ a "o$!a"! o& sale !+e selle "o$#eys ow$es+ip o& !+e pope!y !o !+e b%ye %po$ !+e pe&e"!io$ o& !+e "o$!a"!. S+o%ld !+e b%ye de&a%l! i$ !+e payme$! o& !+e p%"+ase pi"e !+e selle may ei!+e s%e &o !+e "olle"!io$ !+eeo& o +a#e !+e "o$!a"! %di"ially esol#ed a$d se! aside. T+e $o$Bpayme$! o& !+e pi"e is !+ee&oe a $e,a!i#e esol%!oy "o$di!io$. O$ !+e o!+e +a$d a "o$!a"! !o sell is s%be"! !o a posi!i#e s%spe$si#e "o$di!io$. T+e b%ye does $o! a"H%ie ow$es+ip o& !+e pope!y %$!il +e &%lly pays !+e p%"+ase pi"e. Fo !+is easo$ i& !+e b%ye de&a%l!s i$ !+e payme$! !+eeo& !+e selle "a$ o$ly s%e &o dama,es. T+e deed e9e"%!ed by !+e pa!ies s!a!ed !+a! pe!i!io$e sold !+e pope!ies !o espo$de$! / in a (anner a)solute and irrevoca)le7 &o a s%m o& >4.4 millio$. Wi!+ e,ad !o !+e ma$$e o& payme$! i! eH%ied espo$de$! !o pay ><455)) i$ "as+ !o pe!i!io$e %po$ !+e e9e"%!io$ o& !+e deed wi!+ !+e bala$"e payable die"!ly !o RSLAI 3o$ be+al& o& pe!i!io$e6 wi!+i$ a easo$able !ime. =o!+i$, i$ said i$s!%me$! implied !+a! pe!i!io$e ese#ed ow$es+ip o& !+e pope!ies %$!il !+e &%ll payme$! o& !+e p%"+ase pi"e. O$ !+e "o$!ay !+e !ems a$d "o$di!io$s o& !+e deed o$ly a&&e"!ed !+e ma$$e o& payme$! $o! !+e immedia!e !a$s&e o& ow$es+ip 3%po$ !+e e9e"%!io$ o& !+e $o!ai-ed "o$!a"!6 &om pe!i!io$e as selle !o espo$de$! as b%ye. O!+ewise s!a!ed !+e said !ems a$d "o$di!io$s pe!ai$ed !o !+e pe&oma$"e o& !+e "o$!a"! $o! !+e pe&e"!io$ !+eeo& $o !+e !a$s&e o& ow$es+ip. I$ !+is i$s!a$"e pe!i!io$e e9e"%!ed a $o!ai-ed deed o& absol%!e sale i$ &a#o o& espo$de$!. Se!!led is !+e %le !+a! !+e selle is obli,ed !o !a$s&e !i!le o#e !+e pope!ies a$d deli#e !+e same !o !+e b%ye. I$ !+is e,ad A!i"le 4<'0 o& !+e Ci#il Code po#ides !+a! as a %le !+e e9e"%!io$ o& a $o!ai-ed deed o& sale is eH%i#ale$! !o !+e deli#ey o& a !+i$, sold. Moeo#e $o! o$ly did pe!i!io$e !%$ o#e !+e 2eys !o !+e pope!ies !o espo$de$! +e also a%!+oi-ed RSLAI !o e"ei#e payme$! &om espo$de$! a$d elease +is "e!i&i"a!es o& !i!le !o +e. T+e !o!ali!y o& pe!i!io$e?s a"!s "lealy i$di"a!es !+a! +e +ad %$H%ali&iedly deli#eed a$d !a$s&eed ow$es+ip o& !+e pope!ies !o espo$de$!. Clealy i! was a "o$!a"! o& sale !+e pa!ies e$!eed i$!o. Ray(undo S. e Leon vs. Benita . 3ng, G.R. #o. $2*&, e)ruary +, +$ Sale; do%ble sale; A!i"le 45<<; pio possessio$. A!i"le 45<< o& !+e Ci#il Code po#ides !+a! w+e$ $ei!+e b%ye e,is!eed !+e sale o& !+e pope!ies wi!+ !+e e,is!a o& deeds !+e o$e w+o !oo2 pio possessio$ o& !+e pope!ies s+all be !+e law&%l ow$e !+eeo&. I$ !+is i$s!a$"e pe!i!io$e deli#eed !+e pope!ies !o espo$de$! w+e$ +e e9e"%!ed !+e $o!ai-ed deed a$d +a$ded o#e !o es o$de$! !+e 2e s !o !+e o e!ies. Fo !+is easo$ es o$de$! !oo2 a"!%al ossessio$ a$d e9e"ised "o$!ol !+eeo&
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%les o$ do%ble o m%l!iple sales. T+is po#isio$ "lealy s!a!es !+a! !+e %les o$ do%ble o m%l!iple sales apply o$ly !o p%"+ases i$ ,ood &ai!+. =eedless !o say i! disH%ali&ies a$y p%"+ase i$ bad &ai!+. A p%"+ase i$ ,ood &ai!+ is o$e w+o b%ys !+e pope!y o& a$o!+e wi!+o%! $o!i"e !+a! some o!+e peso$ +as a i,+! !o o a$ i$!ees! i$ s%"+ pope!y a$d pays a &%ll a$d &ai pi"e &o !+e same a! !+e !ime o& s%"+ p%"+ase o be&oe +e +as $o!i"e o& some o!+e peso$?s "laim o i$!ees! i$ !+e pope!y. T+e law eH%ies o$ !+e pa! o& !+e b%ye la"2 o& $o!i"e o& a de&e"! i$ !+e !i!le o& !+e selle a$d payme$! i$ &%ll o& !+e &ai pi"e a! !+e !ime o& !+e sale o pio !o +a#i$, $o!i"e o& a$y de&e"! i$ !+e selle?s !i!le. Respo$de$! p%"+ased !+e pope!ies 2$owi$, !+ey wee e$"%mbeed o$ly by !+e mo!,a,e !o RSLAI. A""odi$, !o +e a,eeme$! wi!+ pe!i!io$e espo$de$! +ad !+e obli,a!io$ !o ass%me !+e bala$"e o& pe!i!io$e?s o%!s!a$di$, obli,a!io$ !o RSLAI. Co$seH%e$!ly espo$de$! i$&omed RSLAI o& !+e sale a$d o& +e ass%mp!io$ o& pe!i!io$e?s obli,a!io$. 8owe#e be"a%se pe!i!io$e s%ep!i!io%sly paid +is o%!s!a$di$, obli,a!io$ a$d !oo2 ba"2 +e "e!i&i"a!es o& !i!le pe!i!io$e +imsel& e$deed espo$de$!?s obli,a!io$ !o ass%me pe!i!io$e?s i$deb!ed$ess !o RSLAI impossible !o pe&om. Si$"e espo$de$!?s obli,a!io$ !o ass%me pe!i!io$e?s o%!s!a$di$, bala$"e wi!+ RSLAI be"ame impossible wi!+o%! +e &a%l! s+e was eleased &om !+e said obli,a!io$. Moeo#e be"a%se pe!i!io$e +imsel& will&%lly pe#e$!ed !+e "o$di!io$ #isBB#is !+e payme$! o& !+e emai$de o& !+e p%"+ase pi"e !+e said "o$di!io$ is "o$sideed &%l&illed p%s%a$! !o A!i"le 440 o& !+e Ci#il Code. Fo p%poses !+ee&oe o& de!emi$i$, w+e!+e espo$de$! was a p%"+ase i$ ,ood &ai!+ s+e is deemed !o +a#e &%lly "omplied wi!+ !+e "o$di!io$ o& !+e payme$! o& !+e emai$de o& !+e p%"+ase pi"e. Ray(undo S. e Leon vs. Benita . 3ng, G.R. #o. $2*&, e)ruary +, +$. Sale; l%mp s%m. I$ !+e i$s!a$! "ase !+e deed o& sale is $o! o$e o& a %$i! pi"e "o$!a"!. T+e pa!ies a,eed o$ !+e p%"+ase pi"e o& ><)))).)) &o a pede!emi$ed aea o& <))) sH m (ore or less bo%$ded o$ !+e =o!+ by Lo! =o. 44')( o$ !+e Eas! by Lo! =o. 44')0 o$ !+e So%!+ by Lo! =os. 44050 P 44'4* a$d o$ !+e Wes! by Lo! =o. 44'4). I$ a "o$!a"! o& sale o& la$d i$ a mass !+e spe"i&i" bo%$daies s!a!ed i$ !+e "o$!a"! m%s! "o$!ol o#e a$y o!+e s!a!eme$! wi!+ espe"! !o !+e aea "o$!ai$ed wi!+i$ i!s bo%$daies. Clealy !+e dis"epa$"y o& 4)es"ip!io$ i$ ,e$eal is a mode o& a"H%ii$, o losi$, ow$es+ip a$d o!+e eal i,+!s !+o%,+ !+e lapse o& !ime i$ !+e ma$$e a$d %$de !+e "o$di!io$s laid dow$ by law. 8owe#e pes"ip!io$ was $o! ele#a$! !o !+e de!emi$a!io$ o& !+e disp%!e +eei$ "o$sidei$, !+a! Lim did $o! base +is i,+! o& ow$es+ip o$ a$ ad#ese possessio$ o#e a "e!ai$ peiod. 8e i$sis!ed +eei$ i$s!ead !+a! !i!le !o !+e la$d +ad bee$ #ol%$!aily !a$s&eed by !+e e,is!eed ow$es !+emsel#es !o L%isa +is pede"essoBi$Bi$!ees!. Lim s+owed !+a! +is mo!+e +ad dei#ed a %s! !i!le !o !+e pope!y by #i!%e o& sale; !+a! &om !+e !ime L%isa +ad a"H%ied !+e pope!y i$ 4'(K s+e +ad !a2e$ o#e i!s possessio$ i$ !+e "o$"ep! o& a$ ow$e a$d +ad pe&omed +e obli,a!io$ by payi$, eal pope!y !a9es o$ !+e pope!y as e#ide$"ed by !a9 de"laa!io$s iss%ed i$ +e $ame; a$d !+a! i$ #iew o& !+e deli#ey o& !+e pope!y "o%pled wi!+ L%isa?s a"!%al o""%pa!io$ o& i! all !+a! emai$ed !o be do$e was !+e iss%a$"e o& a $ew !a$s&e "e!i&i"a!e o& !i!le i$ +e $ame. eofisto 3Ko, et al. vs. 0icente #. Li(, ".R. #o. $&*+2, /arch -, +$. S%bdi#isio$ a$d Co$domi$i%m %ye?s de"ee; >.@. =o. '5K; es"issio$ o& "o$!a"!; impa"! o& la"2 o& Li"e$se !o Sell o$ "o$!a"!. GG Spo!swea w+i"+ +ad e$!eed i$!o a ese#a!io$ a,eeme$! &o !+e p%"+ase o& "o$do %$i!s "a$$o! see2 !+e es"issio$ o& !+e a,eeme$! w+ee !+e de#elope +ad $o! bea"+ed a$y s%bs!a$!ial po#isio$ o& !+e a,eeme$!. =ei!+e "a$ GG Spo!swea &i$d e"o%se !+o%,+ >.@. =o. '5K o !+e /S%bdi#isio$ a$d Co$domi$i%m %yes? >o!e"!i#e @e"ee.7 T+is law "o#es all sales a$d p%"+ases o& s%bdi#isio$ o "o$domi$i%m %$i!s a$d po#ides !+a! !+e b%ye?s i$s!allme$! payme$!s s+all $o! be &o&ei!ed i$ &a#o o& !+e de#elope o ow$e i& !+e la!!e &ails !o de#elop !+e s%bdi#isio$ o "o$domi$i%m poe"!. To e"all !+e "omple!io$ da!e o& !+e A$!el Global Copoa!e Ce$!e was ei!+e i$ A%,%s! 4''0 3based o$ Wold Class?s &is! Li"e$se !o Sell6 o$ @e"embe 45 4''0 3based o$ !+e po#isio$al Co$!a"! !o Sell6 o o$ @e"embe 4''' 3based o$ Wold Class?s se"o$d Li"e$se !o Sell6. A! !+e !ime GG Spo!swea &iled i!s "omplai$! a,ai$s! Wold Class o$ %$e 4) 4''K !+e A$!el Global Copoa!e Ce$!e was s!ill i$ !+e "o%se o& de#elopme$! a$d $o$e o& !+ese poe"!ed "omple!io$ da!es +ad ai#ed. 8e$"e a$y "omplai$! &o e&%$d was pema!%e. Si,$i&i"a$!ly Wold Class "omple!ed !+e poe"! i$ A%,%s! 4''' o wi!+i$ !+e !ime peiod ,a$!ed by !+e 8LUR &o !+e "omple!io$ o& !+e "o$domi$i%m poe"! %$de !+e se"o$d Li"e$se !o Sell. T+is "omple!io$ %$de!a2e$ w+ile !+e "ase was pe$di$, be&oe !+e Abi!e e$deed !+e iss%e o& Wold Class?s &ail%e !o de#elop !+e "o$domi$i%m poe"! moo! a$d a"ademi". O$ a &i$al $o!e we "+oose !o ei!ea!e &o !+e be$e&i! o& !+e 8LUR o% %li$, i$ !o !hien v. Sta. Lucia Realty evelop(ent, Inc. !+a! !+e eH%ieme$!s o& Se"!io$s < a$d 5 o& >.@. =o. '5K ae i$!e$ded meely &o admi$is!a!i#e "o$#e$ie$"e i$ ode !o allow &o a moe e&&e"!i#e e,%la!io$ o& !+e i$d%s!y a$d do $o! ,o i$!o !+e #alidi!y o& !+e "o$!a"! s%"+ !+a! !+e abse$"e !+eeo& wo%ld a%!oma!i"ally e$de !+e "o$!a"! $%ll a$d #oid. ".". Sports@ear
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!+e e,as did $o! bi$d >@C w+i"+ +ad a %d,me$! "edi! a,ai$s! Reyes si$"e s%"+ assi,$me$! $ei!+e appeaed i$ a p%bli" do"%me$! $o was e,is!eed wi!+ !+e e,is!e o& deeds as A!i"le 4*5 o& !+e Ci#il Code eH%ied. A!i"le 4*5 eads: A!. 4*5. A$ assi,$me$! o& a "edi! i,+! o a"!io$ s+all pod%"e $o e&&e"! as a,ai$s! !+id peso$s %$less i! appeas i$ a p%bli" i$s!%me$! o !+e i$s!%me$! is e"oded i$ !+e Re,is!y o& >ope!y i$ "ase !+e assi,$me$! i$#ol#es eal pope!y. 345*6 %! A!i"le 4*5 e&eed !o assi,$me$! o& "edi!s a$d o!+e i$"opoeal i,+!s. Reyes did $o! assi,$ a$y "edi! o i$"opoeal i,+! !o !+e e,as. S+e sold !+e e,as +e +o%se a$d lo!. T+ey be"ame ow$e o& !+e pope!y &om !+e !ime s+e e9e"%!ed !+e deed o& assi,$me$! "o#ei$, !+e same i$ !+ei &a#o. >@C +ad a %d,me$! &o mo$ey a,ai$s! Reyes o$ly. A "o%!?s powe !o e$&o"e i!s %d,me$! applies o$ly !o !+e pope!ies !+a! ae i$disp%!ably ow$ed by !+e %d,me$! obli,o. 8ee !+e pope!y +ad lo$,$%$'2+, "eased !o belo$, Reyes w+e$ s+e sold i! !o !+e e,as i$ 4'04. Sps. Antonio and Leticia 0ega vs. Social Security Syste(, et al., ".R. #o. Septe()er +,!o +$
LEASE Lease; e!%$ o& leased pope!y i$ !+e leased pemises. 8ee is !+e &is! paa,ap+ o& !+is "ase wi!+ @i,es!e?s espo$ses i$ "api!als: /W+a! +appe$s w+e$ peso$al pope!ies i$side leased pemises ae s!ip%la!ed as i$"l%ded i$ !+e "o$!a"! o& lease7 T8E >ARTIES CA= @O T8IS U=@ER FREE@OM TO CO=TRACT. /@oes a %d,me$! o$ a s%i! &o %$law&%l de!ai$e ee"!i$, !+e lessees &om !+e s%be"! pope!y "ay wi!+ i! !+e e!%$ o& !+ese peso$al pope!ies as well7 YES ECAUSE U>O= T8E ISSUA=CE OF T8E EECTME=T OR@ER T8E LEASE TERMI=ATES A=@ CLAUSE REURI=G RETUR= OR RE>LACEME=T OF CERTAI= >ERSO=AL >RO>ERTIES FOU=@ I= T8E LEASE@ >REMISES IS TRIGGERE@. /Fi$ally !+e !i"2ie pa! w+i"+ is !+e "%9 o& !+is pe!i!io$: w+a! i& some o& !+ese peso$al pope!ies ae los! des!oyed o sold by !+e lesso May !+e ee"!ed lessees s!ill be odeed !o pay &o !+ei #al%e7 YES. 4niversity Physicians Services, Inc. vs. /arian !linics, Inc. and r. Lourdes /a)anta, ".R. #o. $&+<<, Septe()er $, +$. Lease; implied lease. I! beas emp+asis !+a! !+e espo$de$! did $o! ,i#e !+e pe!i!io$e a $o!i"e !o #a"a!e %po$ !+e e9pia!io$ o& !+e lease "o$!a"! i$ @e"embe 4''K 3!+e $o!i"e !o #a"a!e was se$! o$ly o$ A%,%s! 5 4''06 a$d !+e la!!e "o$!i$%ed e$oyi$, !+e s%be"! pemises &o moe !+a$ 45 days wi!+o%! obe"!io$ &om !+e espo$de$!. y !+e i$a"!io$ o& !+e espo$de$! as lesso !+ee "a$ be $o i$&ee$"e !+a! i! i$!e$ded !o dis"o$!i$%e !+e lease "o$!a"!. A$ implied $ew lease was !+ee&oe "ea!ed p%s%a$! !o A!i"le 4K) o& !+e Ci#il Code. A$ implied $ew lease o tacita reconduccion will se! i$ w+e$ !+e &ollowi$, eH%isi!es ae &o%$d !o e9is!: a6 !+e !em o& !+e oi,i$al "o$!a"! o& lease +as e9pied; b6 !+e lesso +as $o! ,i#e$ !+e lessee a $o!i"e !o #a"a!e; a$d "6 !+e lessee "o$!i$%ed e$oyi$, !+e !+i$, leased &o &i&!ee$ days wi!+ !+e a"H%ies"e$"e o& !+e lesso.7 Si$"e !+e e$! was paid o$ a mo$!+ly basis !+e peiod o& lease is "o$sideed !o be &om mo$!+ !o mo$!+ i$ a""oda$"e wi!+ A!i"le 40K o& !+e Ci#il Code. /DA lease &om mo$!+ !o mo$!+ is "o$sideed !o be o$e wi!+ a de&i$i!e peiod w+i"+ e9pies a! !+e e$d o& ea"+ mo$!+ ,o$ a "+a$ &o 3aa&" - &'" l"sso#.7 W+e$ !+e espo$de$! se$! a $o!i"e !o #a"a!e !o !+e pe!i!io$e o$ A%,%s! 5 4''0 !+e tacita reconduccion was abo!ed a$d !+e "o$!a"! is deemed !o +a#e e9pied a! !+e e$d o& !+a! mo$!+. /DA $o!i"e !o #a"a!e "o$s!i!%!es a$ e9pess a"! o$ !+e pa! o& !+e lesso !+a! i! $o lo$,e "o$se$!s !o !+e "o$!i$%ed o""%pa!io$ by !+e lessee o& i!s pope!y.7 A&!e s%"+ $o!i"e !+e lessee?s i,+! !o "o$!i$%e i$ possessio$ "eases a$d +e possessio$ be"omes o$e o& de!ai$e. 0iegely Sa(elo, represented )y Attorney8in8act !ristina Sa(elo vs. /anotok Services, Inc., etc. ; G.R. =o. 4K)5)' %$e *K *)4*. Lease; i$!ees! o$ %$paid e$!als. T+e pe!i!io$e is liable !o pay i$!ees! by way o& dama,es &o +e &ail%e !o pay !+e e$!als d%e &o !+e %se o& !+e s%be"! pemises. We ei!ea!e !+a! !+e espo$de$!?s e9!a%di"ial dema$d o$ !+e pe!i!io$e was made o$ A%,%s! 5 4''0. T+%s &om !+is da!e !+e e$!als d%e &om !+e pe!i!io$e s+all ea$ i$!ees! a! pe a$$%m %$!il !+e %d,me$! i$ !+is "ase be"omes &i$al a$d e9e"%!oy. A&!e !+e &i$ali!y o& %d,me$! a$d %$!il &%ll payme$! o& !+e e$!als a$d i$!ees!s d%e !+e le,al a!e o& i$!ees! !o be imposed s+all be 4*. 0iegely Sa(elo, represented )y Attorney8in8act !ristina Sa(elo vs. /anotok Services, Inc., etc.; G.R. =o. 4K)5)' %$e *K *)4*. Lease; assi,$me$! o& lease; $eed &o "o$se$!. A!i"le 4<' o& !+e =ew Ci#il Code po#ides: A!. 4<'. T+e lessee "a$$o! assi,$ !+e lease wi!+o%! !+e "o$se$! o& !+e lesso %$less !+ee is a s!ip%la!io$ !o !+e "o$!ay. 3$6
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T+e "o$se$! o& !+e lesso !o a$ assi,$me$! o& lease may i$deed be ,i#e$ e9pessly o impliedly. I! $eed $o! be ,i#e$ sim%l!a$eo%sly wi!+ !+a! o& !+e lessee a$d o& !+e assi,$ee. =ei!+e is i! eH%ied !o be i$ a$y spe"i&i" o pa!i"%la &om. I! m%s! +owe#e be "lealy ,i#e$. I$ !+is "ase i! "a$$o! be said !+a! Ma",ap+i"s ,a#e i!s implied "o$se$! !o !+e assi,$me$! o& lease. Si(edar)y Pilipinas, Inc. vs. "oodyear Philippines, Inc., et al.7"oodyear Philippines, Inc. vs. Si(e ar)y Pilipinas, Inc. et al. G.R. =o. 40*4<0JG.R. =o. 40(*4). %$e 0 *)44 Lease; &i$a$"ial lease; liabili!y o& e,is!eed ow$e. I$ a""oda$"e wi!+ !+e law o$ "omp%lsoy mo!o #e+i"le e,is!a!io$ !+is Co%! +as "o$sis!e$!ly %led !+a! wi!+ espe"! !o !+e p%bli" a$d !+id peso$s !+e e,is!eed ow$e o& a mo!o #e+i"le is die"!ly a$d pimaily espo$sible &o !+e "o$seH%e$"es o& i!s opea!io$ e,adless o& w+o !+e a"!%al #e+i"le ow$e mi,+! be. WellBse!!led is !+e %le !+a! !+e e,is!eed ow$e o& !+e #e+i"le is liable &o H%asiBdeli"!s es%l!i$, &om i!s %se. T+%s e#e$ i& !+e #e+i"le +as aleady bee$ sold leased o !a$s&eed !o a$o!+e peso$ a! !+e !ime !+e #e+i"le &i,%ed i$ a$ a""ide$! !+e e,is!eed #e+i"le ow$e wo%ld s!ill be liable &o dama,es !+e !+id a""ide$!. T+ea,,ie#ed sale !a$s&e lease o&i$#ol#i$, !+e #e+i"le w+i"+ is $o! e,is!eed wi!+ !+e La$d Ta$spo!a!io$ O&&i"e"a%sed will $o!bybi$d peso$s i$ a$oa""ide$! !+e #e+i"le. T+e "omp%lsoy mo!o #e+i"le e,is!a!io$ %$des"oes !+e impo!a$"e o& e,is!ei$, !+e #e+i"le i$ !+e $ame o& !+e a"!%al ow$e. ?B Leasing and inance !orporation Mno@ BPI Leasing !orp.N vs. Sps. Sergio P. Baylon and /aritess 0illena Baylon, et al.> G.R. =o. 404('0. %$e *' *)44 Lease. T%e !+e H%o!ed po#isio$ o& !+e lease "o$!a"! eH%ies ICA !o %$de!a2e mao epais /a&&e"!i$, !+e s!%"!%al "o$di!io$ o& !+e b%ildi$, a$d !+ose d%e !o &o!%i!o%s e#e$!s.7 %! AMA?s o%!i,+! es"issio$ o& !+e lease "o$!a"! a$d dema$d !+a! ICA e!%$ !+e deposi! a$d ad#a$"e e$!als i! ,o! wi!+i$ *< +o%s &om s%"+ dema$d pe"l%ded ICA &is! &om "o$!es!i$, !+e &i$di$,s o& !+e lo"al b%ildi$, o&&i"ial o ,e!!i$, some s!%"!%al spe"ialis!s !o #ei&y s%"+ &i$di$,s o se"o$d &om ma2i$, !+e eH%ied epai. Clealy AMA?s +as!y es"issio$ o& !+e "o$!a"! ,a#e ICA $o "+a$"e !o e9e"ise i!s op!io$s. AMA bela!edly i$#o2es A!i"le 4) o& !+e Ci#il Code w+i"+ eads: A!. 4). I& a dwelli$, pla"e o a$y o!+e b%ildi$, i$!e$ded &o +%ma$ +abi!a!io$ is i$ s%"+ a "o$di!io$ !+a! i!s %se bi$,s immi$e$! a$d seio%s da$,e !o li&e o +eal!+ !+e lessee may !emi$a!e !+e lease a! o$"e by $o!i&yi$, !+e lesso e#e$ i& a! !+e !ime !+e "o$!a"! was pe&e"!ed !+e &ome 2$ew o& !+e da$,eo%s "o$di!io$ o wai#ed !+e i,+! !o es"i$d !+e lease o$ a""o%$! o& !+is "o$di!io$. AMA is a"!%ally "+a$,i$, i!s !+eoy o& !+e "ase. I! "laimed i$ i!s "omplai$! !+a! i! was e$!i!led !o es"i$d !+e "o$!a"! o& lease be"a%se ICA &a%d%le$!ly +id &om i! !+e s!%"!%al de&e"!s o& i!s b%ildi$,. T+e CA did $o! a,ee wi!+ !+is !+eoy b%! +eld !+a! AMA was $o$e!+eless e$!i!led !o es"i$d !+e "o$!a"! &o &ail%e o& ICA !o ma2e !+e epais me$!io$ed i$ !+e "o$!a"!. =ow AMA "laims !+a! i! +as a s!a!%!oy i,+! !o es"i$d !+e lease "o$!a"! o$ !+e ,o%$d me$!io$ed i$ A!i"le 4) e#e$ i& i! may be deemed !o +a#e i$i!ially wai#ed s%"+ i,+!. A!i"le 4) is e#ide$!ly i$!e$ded !o po!e"! +%ma$ li#es. I& ICA?s b%ildi$, was s!%"!%ally de&e"!i#e a$d i$ da$,e o& "as+i$, dow$ d%i$, a$ ea!+H%a2e o a&!e i! is made !o bea !+e load o& a "owd o& s!%de$!s AMA +ad $o i,+! !o wai#e !+ose de&e"!s. I! "a$ es"i$d !+e lease "o$!a"! %$de A!i"le 4). %! !+is ass%mes !+a! !+e de&e"!s wee iemediable a$d !+a! !+e pa!ies +ad $o a,eeme$! &o e"!i&yi$, !+em. As poi$!ed o%! abo#e !+e lease "o$!a"! impli"i!ly ,a#e ICA !+e op!io$ !o epai s!%"!%al de&e"!s a! i!s e9pe$se. I& !+a! +ad bee$ do$e as !+e "o$!a"! po#ides !+e is2 !o +%ma$ li#es wo%ld +a#e bee$ emo#ed a$d !+e i,+! !o es"i$d e$deed iele#a$!. I$ a$y e#e$! !+e &a"! is !+a! !+e lo"al b%ildi$, o&&i"ial &o%$d ICA?s b%ildi$, s!%"!%ally de&e"!i#e a$d %$sa&e. S%"+ &i$di$, is pes%mably !%e. Fo !+is easo$ ICA +as $o %s!i&i"a!io$ &o 2eepi$, AMA?s deposi! a$d ad#a$"e e$!als. S!ill !+e Co%! +olds !+a! AMA is $o! e$!i!led !o e"o#e moe !+a$ !+e e!%$ o& i!s deposi! a$d ad#a$"e e$!al "o$sidei$, !+a! "o$!ay !o AMA?s "laim ICA a"!ed i$ ,ood &ai!+ a$d did $o! mislead i! abo%! !+e "o$di!io$ o& !+e b%ildi$,. I((aculate !onception Acade(y, et al. v. A/A !o(puter !ollege, Inc.> G.R. =o. 4K(5K5. Feb%ay * *)44. Lease; !em; mo$!+B!oBmo$!+ basis. T+e wellBe$!e$"+ed pi$"iple is !+a! a lease &om mo$!+B!oBmo$!+ is wi!+ a de&i$i!e peiod a$d e9pies a! !+e e$d o& ea"+ mo$!+ %po$ !+e dema$d !o #a"a!e by !+e lesso. As +eld by !+e Co%! o& Appeals i$ !+e assailed Ame$ded @e"isio$ !+e abo#eBme$!io$ed lease "o$!a"! was d%ly !emi$a!ed by @> by #i!%e o& i!s le!!e da!ed %$e 40 4'0K. We ei!ea!e !+a! !+e le!!e e9pli"i!ly die"!ed !+e pe!i!io$es !o "ome !o !+e o&&i"e o& !+e @> i& !+ey wis+ed !o e$!e i$!o a $ew lease a,eeme$! wi!+ !+e said ba$2. O!+ewise i& $o "o$!a"! o& lease was e9e"%!ed wi!+i$ () days &om !+e da!e o& !+e le!!e e!i!io$es wee !o be "o$sideed %$i$!ees!ed i$ e$!ei$ i$!o a $ew "o$!a"! a$d wee !+eeb odeed !o #a"a!e
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T+%sly pe!i!io$es? asse!io$ !+a! A!i"le 4K) o& !+e Ci#il Code is $o! appli"able !o !+e i$s!a$! "ase is "oe"!. T+e easo$ +owe#e is $o! !+a! !+e e9is!i$, "o$!a"! was "o$!i$%ed by @> b%! be"a%se !+e lease was !emi$a!ed by @> w+i"+ !emi$a!io$ was a""ompa$ied by a dema$d !o pe!i!io$es !o #a"a!e !+e pemises o& !+e s%be"! pope!y. A!i"le 4K) s!a!es !+a! /Di& a! !+e e$d o& !+e "o$!a"! !+e lessee s+o%ld "o$!i$%e e$oyi$, !+e !+i$, leased &o &i&!ee$ days wi!+ !+e a"H%ies"e$"e o& !+e lesso a$d %$less a $o!i"e !o !+e "o$!ay by ei!+e pa!y +as pe#io%sly bee$ ,i#e$ i! is %$des!ood !+a! !+ee is a$ implied $ew lease $o! &o !+e peiod o& !+e oi,i$al "o$!a"! b%! &o !+e !ime es!ablis+ed i$ A!i"les 40* a$d 40K. T+e o!+e !ems o& !+e oi,i$al "o$!a"! s+all be e#i#ed.7 I$ #iew o& !+e ode !o #a"a!e embodied i$ !+e le!!e o& @> da!ed %$e 40 4'0K i$ !+e e#e$! !+a! $o $ew lease "o$!a"! is e$!eed i$!o !+e pe!i!io$es? "o$!i$%ed possessio$ o& !+e s%be"! pope!ies was wi!+o%! !+e a"H%ies"e$"e o& @> !+eeby $e,a!i$, !+e "o$s!i!%!io$ a$ implied lease. !e)u Bionic Builders Supply, Inc. and Lydia Sia vs. evelop(ent Bank of the Philippines, et al., ".R. #o. $&*<'', #ove()er $2,o& +$. Lease; i,+! o& &is! e&%sal; dis!i$,%is+ed &om op!io$ !o b%y. I$ !+e se#e$!ies =@C +ad e$!eed !i$!o !wo "o$!a"!s o& lease wi!+ a "ompa$y "alled Golde$ 8oi-o$ Real!y Copoa!io$ 3G8RC6. T+ese ea"+ +ad a !em o& 4) yeas e$ewable &o a$o!+e 4) %po$ !+e "o$se$! o& !+e pa!ies. I$ addi!io$ G8RC was ,a$!ed a$ /op!io$7 !o p%"+ase !+e leased pope!y. e&oe !+e e9pia!io$ o& !+e se"o$d lease "o$!a"! G8RC so%,+! !o e9e"ise i!s op!io$ !o e$ew !+e lease a$d eH%es!ed pioi!y !o $e,o!ia!e &o !+e pope!y?s p%"+ase s+o%ld =@C op! !o sell. =@C did $o! espo$d !o !+is eH%es! b%! e#e$ a&!e !+e e9piy o& !+e !em 2ep! o$ a""ep!i$, !+e e$!als. G8RC lea$ed !+a! =@C +ad de"ided !o se"e!ly dispose o& !+e la$d w+i"+ pomp!ed G8R !o !a2e le,al a"!io$. Mea$w+ile !+e$ >eside$! AH%i$o iss%ed a memoa$d%m ode odei$, !+e !a$s&e !o !+e =a!io$al ,o#e$me$! o& !+a! =@C pope!y. T+e =a!io$al Go#e$me$! i$ !%$ !a$s&eed !+e pope!y !o >U>. T+e iss%e is w+e!+e !+e !a$s&e o& !+e pope!y #iola!ed !+e /op!io$7 !+a! +ad bee$ ,a$!ed !o G8RC. A$ op!io$ is a "o$!a"! by w+i"+ !+e ow$e o& a pope!y a,ees wi!+ a$o!+e !+a! !+e la!!e s+all +a#e !+e i,+! !o b%y !+e &ome?s pope!y a! a &i9ed pi"e wi!+i$ a "e!ai$ !ime. I! bi$ds !+e pa!y w+o +as ,i#e$ !+e op!io$ $o! !o e$!e i$!o a "o$!a"! wi!+ a$y o!+e peso$ d%i$, !+e peiod desi,$a!ed a$d wi!+i$ !+a! peiod !o e$!e i$!o s%"+ a "o$!a"! wi!+ !+e o$e !o w+om !+e op!io$ was ,a$!ed i& !+e la!!e de"ides !o %se !+e op!io$. O$ !+e o!+e +a$d a i,+! o& &is! e&%sal is a "o$!a"!%al ,a$! $o! o& a sale o& a pope!y b%! o& &is! pioi!y !o b%y !+e pope!y i$ !+e e#e$! !+e ow$e sells !+e same. As dis!i$,%is+ed &om a$ op!io$ "o$!a"! i$ a i,+! o& &is! e&%sal w+ile !+e obe"! mi,+! be made de!emi$a!e !+e e9e"ise o& !+e i,+! o& &is! e&%sal wo%ld eb depe$de$! $o! o$ly o$ !+e ow$e?s e#e$!%al i$!e$!io$ !o e$!e i$!o a !a$sa"!io$ wi!+ a$o!+e b%! also o$ !ems i$"l%di$, !+e pi"e !+a! ae ye! !o be &imed %p. T+e /op!io$7 ,i#e$ !o G8RC is ob#io%sly a mee i,+! o& &is! e&%sal a$d !+is is $o! disp%!ed by !+e pa!ies. W+a! >U> a$d =@C assail is !+e "o$"l%sio$ !+a! s%"+ i,+! o& &is! e&%sal s%bsis!ed e#e$ a&!e !+e e9pia!io$ o& !+e oi,i$al lease peiod w+e$ G8RC was allowed !o "o$!i$%e s!ayi$, i$ !+e leased pemises %$de a$ implied e$ewal o& lease. T+ey a,%e !+a! !+e i,+! o& &is! e&%sal po#isio$ was $o! "aied o#e !o s%"+ mo$!+B!oBmo$!+ lease. T+e "o%! &o%$d !+is posi!io$ %$!e$able. E#ide$"e s+ows !+a! a! !+e !ime =@C be,a$ $e,o!ia!i$, &o !+e !a$s&e o& !+e la$d !o >U> !+e i,+! o& &is! e&%sal was s%bsis!i$,. 8e$"e w+e!+e o $o! !+e i,+! o& &is! e&%sal was "aied o#e !o !+e implied lease is iele#a$!. Polytechnic 4niversity of the Philippines 0s. "olden 9ori5on Realty !orporation7#ational evelop(ent !o(pany 0s. "olden 9ori5on Realty !orporation ".R. #o. $%<'$+7".R. #o. $%*+', /arch $&, +$ Lease; i,+! !o s%blease. I! is %$disp%!ed !+a! pe!i!io$e +ad ee"!ed espo$de$!?s lod,es !+ee mo$!+s be&oe !+e e9pia!io$ o& !+e lease "o$!a"! o$ K %ly 4''. >e!i!io$e mai$!ai$s !+a! s+e +ad !+e i,+! !o !emi$a!e !+e "o$!a"! pio !o i!s e9pia!io$ be"a%se espo$de$! alle,edly #iola!ed !+e !ems o& !+e lease "o$!a"! by s%bleasi$, !+e e$!ed pemises. 8owe#e pe!i!io$e?s asse!io$ is belied by !+e po#isio$ i$ !+e lease "o$!a"! !+a! s!a!es !+a! !+e lessee "a$ /%se !+e pemises as a dwelli$, o as lod,i$, +o%se.7 T+%s !+e lessee +ad !+e i,+! !o s%blease !+e pemises. oris 4. Sun)anun vs. Aurora B. "o, ".R. #o. $'<+%, e)ruary +, +$. Co$!a"!s; Res"issio$. U$de !+ei lease a,eeme$! !+e emedy o& es"issio$ wo%ld be"ome %$a#ailable !o @S o$ly i& !+e Ma!i$s as lessos made !+e eH%ied epai a$d e"o$s!%"!io$ a&!e !+e dama,es by $a!%al "a%se o""%ed w+i"+ mea$! p%!!i$, !+e pemises a&!e !+e &loods i$ s%"+ "o$di!io$ as wo%ld e$able @S !o es%me i!s %se o& !+e same &o !+e p%poses "o$!empla!ed i$ !+e a,eeme$! $amely as o&&i"e wae+o%se a$d pa2i$, spa"e &o @S? epossessed #e+i"les. 8ee i! is %$disp%!ed !+a! !+e &loods o& May *5 a$d A%,%s! 4( 4''K s%bme,ed !+e @S o&&i"es a$d i!s (* epossessed #e+i"les. T+e &loods e$deed !+e pla"e %$s%i!able &o i!s i$!e$ded %ses. A$d w+ile !+e Ma!i$s did some epais !+ey did $o! es!oe !+e pla"e !o mee! @S? $eeds. T+%s @S may see2 !o es"i$di$, !+e lease. elicidad . /artin, et al. vs. BS Bank Philippines, Inc., et al. ".R. #o. $2*'<+ ".R. #o. $2*%*, ;une $', +$.
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I$ !+is "ase !+e lessees /emo#ed o$ly !+e impo#eme$!s !+ey i$!od%"ed wi!+o%! des!oyi$, !+e pi$"ipal b%ildi$, a&!e !+e lessos e&%sed !o pay !+em !+e easo$able #al%e o& !+e impo#eme$!s.7 W+e$ !+e lessees dema$ded eimb%seme$! !+e lessos s+o%ld +a#e o&&eed !o pay !+e lessees Moes o$eB+al& o& !+e #al%e o& !+e impo#eme$!s. Si$"e !+e lessos &ailed !o ma2e s%"+ o&&e !+e lessees +ad !+e i,+! !o emo#e !+e impo#eme$!s a$d !+e lessos wee $o! e$!i!led !o a$y moal dama,es. Alida /ores vs. Shirley /. =u8"o, /a. 0ictoria =u8Li( and /a. ?strella /. =u, ".R. #o. $2++-+, ;uly +<, +$. Lease; assi,$me$!; eH%ieme$! &o lesso?s "o$se$!. >=OC?s b%yBo%! o& ESSO >+ilippi$es was !o!al a$d %$"o$di!io$al lea#i$, $o esid%al i,+!s !o ESSO Eas!e$. Lo,i"ally !+is "+a$,e o& ow$es+ip "aied wi!+ i! !+e !a$s&e !o >=OC o& a$y popie!ay i$!ees! ESSO Eas!e$ may +old !+o%,+ ESSO >+ilippi$es i$"l%di$, ESSO Eas!e$?s lease o#e !+e >ope!y w+i"+ lease "o$!a"! po#ided !+a! !+e "o$!a"! "o%ld $o! be assi,$ed by ESSO Eas!e$ wi!+o%! !+e "o$se$! o& !+e lesso. As !+e lesso +as ,i#e$ $o pio "o$se$! !o !+e !a$sa"!io$ be!wee$ ESSO Eas!e$ a$d >=OC ESSO Eas!e$ #iola!ed !+e Co$!a"!?s assi,$me$! #e!o "la%se. Ro(eo . /ariano vs. Petron !orporation, ".R. #o. $'-*<%, ;anuary +$, +$. Lease; wai#e o& i,+! !o ee"! lessee. T+e "o$!i$%ed e"eip! o& lease payme$!s by !+e lesso despi!e !+e "o$!a"!%al bea"+ amo%$!ed !o a wai#e o& !+ei op!io$ !o ee"! !+e lessee. Ro(eo . /ariano vs. Petron !orporation, ".R. #o. $'-*<%, ;anuary +$, +$. Co$!a"!s; l%mp s%m &o pie"e o& wo2. T+e pa!ies e$!eed i$!o a "o$!a"! &o a pie"e o& wo2 w+eeby pe!i!io$e e$,a,ed espo$de$! as "o$!a"!o !o b%ild a$d po#ide !+e $e"essay ma!eials &o !+e "o$s!%"!io$ o& !+e s!%"!%al s!eel wo2s o& 8I?s &ibe "eme$! pla$! &o a &i9ed l%mpBs%m pi"e o& ><<**(')'. T+e s"ope o& wo2 was de&i$ed i$ !+e s%b"o$!a"! as !+e "omple!io$ o& !+e s!%"!%al s!eel wo2s a""odi$, !o !+e mai$ dawi$, !e"+$i"al spe"i&i"a!io$s a$d !+e mai$ "o$!a"!. T+%s !o de!emi$e w+e!+e !+e oo& id,e #e$!ila!io$ a$d "a$e beams wee i$"l%ded i$ !+e s"ope o& wo2 e&ee$"e !o !+e mai$ dawi$, !e"+$i"al spe"i&i"a!io$s a$d mai$ "o$!a"! is $e"essay. T+e mai$ "o$!a"! s!a!ed !+a! !+e s!%"!%al s!eel wo2s i$"l%ded @awi$, =os. >()*B*))BSB<)5 a$d >()*B*))BSB<)*. T+is a""odi$, !o pe!i!io$e a$d espo$de$! e&eed !o !+e oo& id,e #e$!ila!io$ a$d "a$e beams. 8e$"e !+e said wo2s wee "lealy i$"l%ded i$ !+e s%bB"o$!a"! wo2s. =e#e!+eless espo$de$! "o$!e$ds !+a! w+e$ e$$e!! si,$ed !+e A%,%s! 4* 4''K po,ess epo! pe!i!io$e appo#ed !+e addi!io$al "os! es!ima!es i$ e&&e"! modi&yi$, !+e oi,i$al a,eeme$! i$ !+e s%b"o$!a"!. I$ "o$!a"!s &o a s!ip%la!ed pi"e li2e &i9ed l%mpBs%m "o$!a"!s !+e e"o#ey o& addi!io$al "os!s is ,o#e$ed by A!i"le 4K*< o& !+e Ci#il Code. Se!!led is !+e %le !+a! a "laim &o !+e "os! o& addi!io$al wo2 aisi$, &om "+a$,es i$ !+e s"ope o& wo2 "a$ o$ly be allowed %po$ !+e 346 wi!!e$ a%!+oi!y &om !+e de#elope o poe"! ow$e odei$, o allowi$, !+e wi!!e$ "+a$,es i$ wo2 a$d 3*6 wi!!e$ a,eeme$! o& pa!ies wi!+ e,ad !o !+e i$"ease i$ pi"e o "os! d%e !o !+e "+a$,e i$ wo2 o desi,$ modi&i"a!io$. F%!+emoe "omplia$"e wi!+ !+e !wo eH%isi!es o& A!i"le 4K*< a spe"i&i" po#isio$ ,o#e$i$, addi!io$al wo2s is a "o$di!io$ pe"ede$! &o !+e e"o#ey. T+e abse$"e o& o$e o !+e o!+e "o$di!io$ bas !+e e"o#ey o& addi!io$al "os!s. =ei!+e !+e a%!+oi!y &o !+e "+a$,es made $o !+e addi!io$al pi"e !o be paid !+ee&o may be po#ed by a$y o!+e e#ide$"e. Respo$de$! i$ !+is i$s!a$"e pese$!ed !+e A%,%s! 4* 4''K po,ess epo! si,$ed by e$$e!!. 8owe#e espo$de$! 2$ew !+a! e$$e!! was $o! a%!+oi-ed !o ode a$y "+a$,es i$ !+e s"ope o& wo2s o !o appo#e !+e "os! !+eeo&. I! addessed all "oespo$de$"es ela!i$, !o !+e poe"! !o 3pe!i!io$e?s6 poe"! ma$a,e Mi"+ael @e$! $o! e$$e!!. Moeo#e e$$e!! did $o! si,$ !+e s%b"o$!a"! &o a$d i$ be+al& o& espo$de$! b%! o$ly as a wi!$ess. Respo$de$! was !+ee&oe awae o& e$$e!!?s la"2 o& a%!+oi!y. I$ !+is espe"! aside &om espo$de$!?s &ail%e !o pese$! !+e do"%me$!s eH%ied by A!i"le 4K*< o& !+e Ci#il Code we &i$d !+a! !+e s%bB"o$!a"! was $e#e modi&ied. >e!i!io$e !+ee&oe "a$$o! be liable &o !+e addi!io$al "os!s i$"%ed by espo$de$!. I$ a &i9ed l%mpBs%m "o$!a"! !+e poe"! ow$e a,ees !o pay !+e "o$!a"!o a spe"i&ied amo%$! &o "omple!i$, a s"ope o& wo2 i$#ol#i$, a #aie!y o& %$spe"i&ied i!ems o& wo2 wi!+o%! eH%ii$, a "os! bea2dow$. T+e "o$!a"!o es!ima!es !+e poe"! "os! based o$ !+e s"ope o& wo2 a$d s"+ed%le a$d "o$sides pobable eos i$ meas%eme$! a$d "+a$,es i$ !+e pi"e o& ma!eials. y e$!ei$, i$!o a &i9ed l%mpB s%m "o$!a"! espo$de$! %$de!oo2 !+e is2 o& i$"%i$, a loss d%e !o eos i$ meas%eme$!. T+e s%bB"o$!a"! e9pli"i!ly s!a!ed !+a! !+e s!ip%la!ed pi"e was $o! s%be"! !o emeas%eme$!. Si$"e !+e oo& id,e #e$!ila!io$ a$d "a$e beams wee i$"l%ded i$ !+e s"ope o& wo2 espo$de$! was pes%med !o +a#e es!ima!ed !+e H%a$!i!y o& s!eel 3!+e mi$im%m a$d ma9im%m amo%$!6 $eeded o$ !+e said po!io$s w+e$ i! made i!s &omal o&&e o$ %ly 5 4''K. Co$"omi!a$!ly by !+e #ey $a!%e o& a &i9ed l%mpBs%m "o$!a"! pe!i!io$e was o$ly liable !o pay !+e s!ip%la!ed s%b"o$!a"! pi"e. Leighton !ontractors Philippines, Inc. vs. !#P Industries, Inc., ".R. #o. $'-2+, /arch -, +$
>ART=ERS8I> oi$! e$!%e; Appli"a!io$ o& Laws o$ >a!$es+ip; S+ai$, o& Losses. A oi$! #e$!%e bei$, a &om o& pa!$es+ip i! is !o be ,o#e$ed by !+e laws o$ pa!$es+ip.
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T+e appella!e "o%!?s de"isio$ m%s! be modi&ied +owe#e. Masma$ @ysdale a$d Go!es"o bei$, oi$!ly liable !+ee is $o $eed &o Go!es"o !o eimb%se Masma$ @ysdale &o /5) o& !+e a,,e,a!e s%m d%e7 !o >GI. Allowi$, Masma$ @ysdale !o e"o#e &om Go!es"o w+a! i! paid !o >GI wo%ld $o! o$ly be "o$!ay !o !+e law o$ pa!$es+ip o$ di#isio$ o& losses b%! wo%ld pa!a2e o& a "lea "ase o& %$%s! e$i"+me$! a! Go!es"o?s e9pe$se. /ars(an rysdale vs. Philippine "eoanalytics, et al. and "otesco Properties vs. /ars(an rysdale Land, Inc., et al., ".R. #o. $%<<2* ".R. #o. $%<<2', ;une +-, +$ . >a!$es+ip; e9is!e$"e o& a pa!$es+ip. A pa!$es+ip e9is!s w+e$ !wo o moe peso$s a,ee !o pla"e !+ei mo$ey e&&e"!s labo a$d s2ill i$ law&%l "omme"e o b%si$ess wi!+ !+e %$des!a$di$, !+a! !+ee s+all be a popo!io$a!e s+ai$, o& !+e po&i!s a$d losses amo$, !+em. A "o$!a"! o& pa!$es+ip is de&i$ed by !+e Ci#il Code as o$e w+ee !wo o moe peso$s bi$d !+emsel#es !o "o$!ib%!e mo$ey pope!y o i$d%s!y !o a "ommo$ &%$d wi!+ !+e i$!e$!io$ o& di#idi$, !+e po&i!s amo$, !+emsel#es. U$do%b!edly !+e bes! e#ide$"e wo%ld +a#e bee$ !+e "o$!a"! o& pa!$es+ip o !+e a!i"les o& pa!$es+ip. U$&o!%$a!ely !+eew+o is $o$e i$ !+isose "asea$d be"a%se !+ewas alle,ed pa!$es+ip was!%"2i$, $e#e &omally o,a$i-ed. =o$e!+eless we ae as2ed !o de!emi$e be!wee$ El&ledo !+e /pa!$e7 i$ !+e b%si$ess. T+e e#ide$"e pese$!ed by pe!i!io$es &alls s+o! o& !+e H%a$!%m o& poo& eH%ied !o es!ablis+ !+a!: 346 ose was !+e pa!$e a$d $o! El&ledo; a$d 3*6 all !+e pope!ies a"H%ied by El&ledo a$d espo$de$! &om pa! o& !+e es!a!e o& ose +a#i$, bee$ dei#ed &om !+e alle,ed pa!$es+ip. >e!i!io$es +ea#ily ely o$ immy?s !es!imo$y. %! !+a! !es!imo$y is %s! o$e pie"e o& e#ide$"e a,ai$s! espo$de$!. Applyi$, !+e po#isio$s o& A!i"le 4K' o& !+e Ci#il Code 3o$ w+e!+e a pa!$es+ip e9is!s6 !+e &ollowi$, "i"%ms!a$"es !e$d !o po#e !+a! El&ledo was +imsel& !+e pa!$e o& immy a$d =obe!o: 346 Cese$"ia !es!i&ied !+a! ose ,a#e El&ledo >5)))).)) as s+ae i$ !+e pa!$es+ip o$ a da!e !+a! "oi$"ided wi!+ !+e payme$! o& !+e i$i!ial "api!al i$ !+e pa!$es+ip; 3*6 El&ledo a$ !+e a&&ais o& !+e pa!$es+ip wieldi$, absol%!e "o$!ol powe a$d a%!+oi!y wi!+o%! a$y i$!e#e$!io$ o opposi!io$ w+a!soe#e &om a$y o& pe!i!io$es +eei$; 3(6 all o& !+e pope!ies pa!i"%laly !+e $i$e !%"2s o& !+e pa!$es+ip wee e,is!eed i$ !+e $ame o& El&ledo; 3<6 immy !es!i&ied !+a! El&ledo did $o! e"ei#e wa,es o salaies &om !+e pa!$es+ip i$di"a!i$, !+a! w+a! +e a"!%ally e"ei#ed wee s+aes o& !+e po&i!s o& !+e b%si$ess; a$d 356 $o$e o& !+e pe!i!io$es as +eis o& ose !+e alle,ed pa!$e dema$ded peiodi" a""o%$!i$, &om El&ledo d%i$, +is li&e!ime. F%!+emoe pe!i!io$es &ailed !o add%"e a$y e#ide$"e !o s+ow !+a! !+e eal a$d peso$al pope!ies a"H%ied a$d e,is!eed i$ !+e $ames o& El&ledo a$d espo$de$! &omed pa! o& !+e es!a!e o& ose +a#i$, bee$ dei#ed &om ose?s alle,ed pa!$es+ip wi!+ immy a$d =obe!o. T+ey &ailed !o e&%!e espo$de$!?s "laim !+a! El&ledo a$d espo$de$! e$,a,ed i$ o!+e b%si$esses. Ediso$ e#e$ admi!!ed !+a! El&ledo also sold I$!ewood l%mbe as a sideli$e. >e!i!io$es "o%ld $o! o&&e a$y "edible e#ide$"e o!+e !+a$ !+ei bae asse!io$s. T+eo!+ewise !es!imo$ies po#e i! was!+e !+o%,+ El&edo?s e&&o!s a$d +ad wo2 !+e pa!$es+ip was able !o a"H%ie moe !%"2s a$d pospe. E#e$ appella$! pa!i"ipa!ed i$ !+e a&&ais o&!+a! !+e pa!$es+ip by a"!i$, as !+e boo22eepe sa$s salay. I! is $o!able !oo !+a! ose Lim died w+e$ !+e pa!$es+ip was baely a yea old a$d !+e pa!$es+ip a$d i!s b%si$ess $o! o$ly "o$!i$%ed b%! also &lo%is+ed. I& i! wee !%e !+a! i! was ose Lim a$d $o! El&ledo w+o was !+e pa!$e !+e$ %po$ +is dea!+ !+e pa!$es+ip s+o%ld +a#e bee$ dissol#ed a$d i!s asse!s liH%ida!ed. O$ !+e "o$!ay !+ese wee $o! do$e b%! i$s!ead i!s opea!io$ "o$!i$%ed %$de !+e +elm o& El&ledo a$d wi!+o%! a$y pa!i"ipa!io$ &om !+e +eis o& ose Lim. 9eirs of ;ose Li(, represented )y ?lenito Li( vs. ;uliet 0illa Li(, ".R. #o. $2+'-, /arch <, +$
AGE=CY A,e$"y; a!i&i"a!io$. T+e "omplai$! was a$"+oed o$ !+e s%pposed &ail%e o& FETC !o d%ly i$#es!i,a!e !+e a%!+oi!y o& A$!o$io i$ "o$!a"!i$, !+e /e9"ep!io$ally a$d ela!i#ely imme$se7 loa$s amo%$!i$, !o >5)))))).)). Ma"os alle,ed !+eei$ !+a! +is pope!y +ad !+eeby be"ome /%$law&%lly b%de$ed by %$a%!+oi-ed eal es!a!e mo!,a,e "o$!a"!s7 be"a%se !+e loa$s a$d !+e mo!,a,e "o$!a"!s +ad bee$ i$"%ed by A$!o$io a$d +is wi&e o$ly &o !+emsel#es !o !+e e9"l%sio$ o& pe!i!io$e. Ye! Ma"os "o%ld $o! de$y !+a! %$de !+e e9pess !ems o& !+e S>A +e +ad pe"isely ,a$!ed !o A$!o$io as +is a,e$! !+e a%!+oi!y !o boow mo$ey a$d !o !a$s&e a$d "o$#ey !+e pope!y by way o& mo!,a,e !o FETC; !o si,$ e9e"%!e a$d deli#e pomissoy $o!es; a$d !o e"ei#e !+e po"eeds o& !+e loa$s o$ !+e &ome?s be+al&. I$ o!+e wods !+e mo!,a,e "o$!a"!s wee #alid a$d e$&o"eable a,ai$s! pe!i!io$e w+o was "o$seH%e$!ly &%lly bo%$d by !+ei !ems. Moeo#e e#e$ i& i! was ass%med !+a! A$!o$io?s ob!ai$i$, !+e loa$s i$ +is ow$ $ame a$d e9e"%!i$, !+e mo!,a,e "o$!a"!s also i$ +is ow$ $ame +ad e9"eeded +is e9pess a%!+oi!y %$de !+e S>A Ma"os was s!ill liable !o FETC by #i!%e o& +is e9pess a!i&i"a!io$ o& A$!o$io?s a"!. U$de A!i"le 40'0 o& !+e !ivil !ode !+e a"!s o& a$ a,e$! do$e beyo$d !+e s"ope o& +is a%!+oi!y do $o! bi$d !+e pi$"ipal %$less !+e la!!e e9pessly o impliedly a!i&ies !+e same. I$ a,e$"y a!i&i"a!io$ is !+e adop!io$ o "o$&ima!io$ by o$e peso$ o& a$ a"! pe&omed o$ +is be+al& by a$o!+e wi!+o%! a%!+oi!y. T+e s%bs!a$"e o& a!i&i"a!io$ is !+e "o$&ima!io$ a&!e !+e a"! amo%$!i$, !o a s%bs!i!%!e &o a pio a%!+oi!y. 8ee !+ee was s%"+ a a!i&i"a!io$ by Ma"os as bo$e o%! by +is e9e"%!io$ o& !+e le!!e o& a"2$owled,eme$! o$ Sep!embe 4* 4''.
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be"a%se +e 2$ew as a lawye !+a! e#e$ ass%mi$, !+a! !+e le!!e "o%ld be !ea!ed as a "o$!a"! o& ad+esio$ i! was $o$e!+eless e&&e"!i#e a$d bi$di$, li2e a$y o!+e "o$!a"!. T+e Co%! +as "o$sis!e$!ly +eld !+a! a "o$!a"! o& ad+esio$ was $o! po+ibi!ed &o !+a! easo$. I$ Pilipino elephone !orporation v. ecson&o i$s!a$"e !+e Co%! said !+a! "o$!a"!s o& ad+esio$ wee #alid b%! mi,+! be o""asio$ally s!%"2 dow$ o$ly i& !+ee was a s+owi$, !+a! !+e domi$a$! ba,ai$i$, pa!y le&! !+e wea2e pa!y wi!+o%! a$y "+oi"e as !o be /"omple!ely depi#ed o& a$ oppo!%$i!y !o ba,ai$ e&&e"!i#ely.7 T+a! e9"ep!io$ did $o! apply +ee &o #eily Ma"os bei$, a lawye "o%ld $o! +a#e bee$ !+e wea2e pa!y. As !+e !e$o o& !+e o& a"2$owled,me$! i$di"a!ed +e was &%lly awae o& !+e mea$i$, a$d se$se o& e#ey wi!!e$ wod o p+ase as well as o& !+e le,al e&&e"! o& +is "o$&ima!io$ !+eeby o& +is a,e$!?s a"!. I! is a9ioma!i" !+a! a ma$?s a"! "o$d%"! a$d de"laa!io$ w+ee#e made i& #ol%$!ay ae admissible a,ai$s! +im &o !+e easo$ !+a! i! is &ai !o pes%me !+a! !+ey "oespo$d wi!+ !+e !%!+ a$d i! is +is &a%l! i& !+ey do $o!. /arcos 0. Prieto vs. !ourt of Appeals, et al.; G.R. =o. 4505'K %$e 40 *)4*. A,e$"y; a!i&i"a!io$; a,e$"y by es!oppel. U$de A!i"les 40'0 a$d 4'4) a$ a,e$!?s a"! e#e$ i& do$e beyo$d !+e s"ope o& +is a%!+oi!y may bi$d !+e pi$"ipal i& +e a!i&ies !+em w+e!+e e9pessly o !a"i!ly. I! m%s! be s!essed !+o%,+ !+a! o$ly !+e pi$"ipal a$d $o! !+e a,e$! "a$ a!i&y !+e %$a%!+oi-ed a"!s w+i"+ !+e pi$"ipal m%s! +a#e 2$owled,e o&. =ei!+e U$imai$e $o Ceb% S+ipyad was able !o ep%dia!e CIC?s !es!imo$y !+a! i! was %$awae o& !+e e9is!e$"e o& S%e!y o$d =o. G 346 *'<4' a$d E$doseme$! =o. ((45*. T+ee wee $o alle,a!io$s ei!+e !+a! CIC s+o%ld +a#e bee$ p%! o$ ale! wi!+ e,ad !o %i$ai$?s b%si$ess !a$sa"!io$s do$e o$ i!s be+al&. I! is "lea a$d %$disp%!ed !+ee&oe !+a! !+ee "a$ be $o a!i&i"a!io$ i$ !+is "ase w+e!+e e9pess o implied. A!i"le 4'44 o$ !+e o!+e +a$d is based o$ !+e pi$"iple o& es!oppel w+i"+ is $e"essay &o !+e po!e"!io$ o& !+id peso$s. I! s!a!es !+a! !+e pi$"ipal is solidaily liable wi!+ !+e a,e$! e#e$ w+e$ !+e la!!e +as e9"eeded +is a%!+oi!y i& !+e pi$"ipal allowed +im !o a"! as !+o%,+ +e +ad &%ll powes. 8owe#e &o a$ a,e$"y by es!oppel !o e9is! !+e &ollowi$, m%s! be es!ablis+ed: 4. *. (.
T+e pi$"ipal ma$i&es!ed a epese$!a!io$ o& !+e a,e$!?s a%!+oi!y o 2$owi$,ly allowed !+e a,e$! !o ass%me s%"+ a%!+oi!y; T+e !+id peso$ i$ ,ood &ai!+ elied %po$ s%"+ epese$!a!io$; a$d Relyi$, %po$ s%"+ epese$!a!io$ s%"+ !+id peso$ +as "+a$,ed +is posi!io$ !o +is de!ime$!.
I$ Litonua, ;r. v. ?ternit !orp., !+is Co%! said !+a! /Da$ a,e$"y by es!oppel w+i"+ is simila !o !+e do"!i$e o& appae$! a%!+oi!y eH%ies poo& o& elia$"e %po$ !+e epese$!a!io$s a$d !+a! i$ !%$ $eeds poo& !+a! !+e epese$!a!io$s peda!ed !+e a"!io$ !a2e$ i$ elia$"e.7 T+is Co%! "a$$o! a,ee wi!+ !+e Co%! o& Appeals? po$o%$"eme$! o& $e,li,e$"e o$ CIC?s pa!. CIC $o! o$ly "lealy s!a!ed !+e limi!s o& i!s a,e$!s? powes i$ !+ei "o$!a"!s i! e#e$ s!amped i!s s%e!y bo$ds wi!+ !+e es!i"!io$s i$ ode !o ale! !+e "o$"e$ed pa!ies. Moeo#e i!s "ompa$y po"ed%es s%"+ as epo!i$, eH%ieme$!s s+ow !+a! i! +as desi,$ed a sys!em !o mo$i!o !+e i$s%a$"e "o$!a"!s iss%ed by i!s a,e$!s. CIC "a$$o! be &a%l!ed &o %i$ai$?s delibea!e &ail%e !o $o!i&y i! o& +is !a$sa"!io$s wi!+ U$imai$e. I$ &a"! CIC did $o! e#e$ e"ei#e !+e pemi%ms paid by U$imai$e !o %i$ai$. F%!+emoe $ow+ee i$ !+e de"isio$s o& !+e lowe "o%!s was i! s!a!ed !+a! CIC le! !+e p%bli" o spe"i&i"ally U$imai$e belie#e !+a! %i$ai$ +ad !+e a%!+oi!y !o iss%e a s%e!y bo$d i$ &a#o o& "ompa$ies o!+e !+a$ !+e @epa!me$! o& >%bli" Wo2s a$d 8i,+ways !+e =a!io$al >owe Copoa!io$ a$d o!+e ,o#e$me$! a,e$"ies. =ei!+e was i! s+ow$ !+a! CIC 2$ew o& !+e e9is!e$"e o& !+e s%e!y bo$d be&oe !+e e$doseme$! e9!e$di$, !+e li&e o& !+e bo$d was iss%ed !o U$imai$e. Fo o$e !o s%""ess&%lly "laim !+e be$e&i! o& es!oppel o$ !+e ,o%$d !+a! +e +as bee$ misled by !+e epese$!a!io$s o& a$o!+e +e m%s! s+ow !+a! +e was $o! misled !+o%,+ +is ow$ wa$! o& easo$able "ae a$d "i"%mspe"!io$. !ountry Bankers Insurance !orporation vs. eppel !e)u Shipyard, Inc., et al.; G.R. =o. 4)<< %$e 40 *)4*. A,e$"y; a,e$"y by es!oppel. T+e do"!i$e o& es!oppel is based %po$ !+e ,o%$ds o& p%bli" poli"y &ai deali$, ,ood &ai!+ a$d %s!i"e a$d i!s p%pose is !o &obid o$e !o spea2 a,ai$s! +is ow$ a"! epese$!a!io$s o "ommi!me$!s !o !+e i$%y o& o$e !o w+om !+ey wee die"!ed a$d w+o easo$ably elied !+eeo$. T+e do"!i$e o& es!oppel spi$,s &om eH%i!able pi$"iples a$d !+e eH%i!ies i$ !+e "ase. I! is desi,$ed !o aid !+e law i$ !+e admi$is!a!io$ o& %s!i"e w+ee wi!+o%! i!s aid i$%s!i"e mi,+! es%l!. I! +as bee$ applied by !+is Co%! w+ee#e a$d w+e$e#e spe"ial "i"%ms!a$"es o& a "ase so dema$d. ased o$ !+e e#e$!s a$d "i"%ms!a$"es s%o%$di$, !+e iss%a$"e o& !+e assailed odes !+is Co%! %les !+a! MEGA= is es!opped &om assaili$, bo!+ !+e a%!+oi!y o& A!!y. Sabi, a$d !+e %isdi"!io$ o& !+e RTC. W+ile i! is !%e as "laimed by MEGA= !+a! A!!y. Sabi, said i$ "o%! !+a! +e was o$ly appeai$, &o !+e +eai$, o& >assi S%,a?s mo!io$ &o i$!e#e$!io$ a$d $o! &o !+e "ase i!sel& +is s%bseH%e$! a"!s "o%pled wi!+ MEGA=?s i$a"!io$ a$d $e,li,e$"e !o ep%dia!e +is a%!+oi!y e&&e"!i#ely bas MEGA= &om assaili$, !+e #alidi!y o& !+e RTC po"eedi$,s %$de !+e pi$"iple o& es!oppel. /egan Sugar
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ma$a,e +e epese$!ed >R8C i$ %$$i$, i!s a&&ais wi!+ e,ad !o !+e e9e"%!io$ o& !+e a&oesaid poe"!s. Ab"ede +ad si,$ed o$ be+al& o& >R8C o!+e do"%me$!s !+a! wee almos! ide$!i"al !o !+e H%es!io$ed le!!eBa,eeme$!. >R8C does $o! H%es!io$ !+e #alidi!y o& !+ese a,eeme$!s; i! !+eeby e&&e"!i#ely admi!s !+a! !+is i$di#id%al +ad a"!%al a%!+oi!y !o si,$ o$ i!s be+al& wi!+ espe"! !o !+ese "o$s!%"!io$ poe"!s. Philippine Realty and 9olding !orp. vs. Ley !onst. and ev. !orp.7Ley !ons. and ev. !orp. vs. Philippine Realty and 9olding !orp., G.R. =o. 455<0JG.R. =o. 4K0K'. %$e 4( *)44 A,e$"y. T+e sale o& !+e @MCI s+aes made by EI is $%ll a$d #oid &o la"2 o& a%!+oi!y !o do so &o pe!i!io$es $e#e ,a#e !+ei "o$se$! o pemissio$ !o !+e sale. Moeo#e A!i"le 4004 o& !+e Ci#il Code po#ides !+a! /!+e a,e$! m%s! a"! wi!+i$ !+e s"ope o& +is a%!+oi!y.7 >%s%a$! !o !+e a%!+oi!y ,i#e$ by !+e pi$"ipal !+e a,e$! is ,a$!ed !+e i,+! /!o a&&e"! !+e le,al ela!io$s o& +is pi$"ipal by !+e pe&oma$"e o& a"!s e&&e"!%a!ed i$ a""oda$"e wi!+ !+e pi$"ipal?s ma$i&es!a!io$ o& "o$se$!.7 I$ !+e "ase a! ba !+e s"ope o& a%!+oi!y o& EI as a,e$! o& pe!i!io$es is /!o e!ai$ apply sell o dispose o& all o a$y o& !+e "lie$!?s Dpe!i!io$es? pope!y7 o a$yi$i$deb!ed$ess o payme$! o!+e obli,a!io$s o& pe!i!io$es !o EI ae dis"+a,ed i$ &%ll by pe!i!io$es /w+e$ d%e o i&o$all dema$d o !owads !+e a$d dis"+a,e o& s%"+ obli,a!io$ o $o! liabili!y.7 T+e i,+! !o sell o dispose o& !+e pope!ies o& pe!i!io$es by EI is %$eH%i#o"ally "o$&i$ed !o payme$! o& !+e obli,a!io$s a$d liabili!ies o& pe!i!io$es !o EI a$d $o$e o!+e. T+%s w+e$ EI sold !+e @MCI s+aes !o b%y ba"2 !+e NN> s+aes i! paid !+e po"eeds !o !+e #e$dees o& said s+aes !+e a"! o& w+i"+ is "lealy a$ obli,a!io$ !o a !+id pa!y a$d +e$"e is beyo$d !+e ambi! o& i!s a%!+oi!y as a,e$!. S%"+ a"! is s%ely ille,al a$d does $o! bi$d pe!i!io$es as pi$"ipals o& EI. Pacific Rehouse !orporation, et al. vs. ?IB Securities, Inc.>".R. #o. $%*<', 3cto)er $<, +$. A,e$"y; do"!i$e o& appae$! a%!+oi!y. T+e do"!i$e o& appae$! a%!+oi!y i$ espe"! o& ,o#e$me$! "o$!a"!s +as bee$ es!a!ed !o mea$ !+a! !+e ,o#e$me$! is =OT bo%$d by %$a%!+oi-ed a"!s o& i!s a,e$!s e#e$ !+o%,+ wi!+i$ !+e appae$! s"ope o& !+ei a%!+oi!y. U$de !+e law o$ a,e$"y +owe#e /appae$! a%!+oi!y7 is de&i$ed as !+e powe !o a&&e"! !+e le,al ela!io$s o& a$o!+e peso$ by !a$sa"!io$s wi!+ !+id peso$s aisi$, &om !+e o!+e?s ma$i&es!a!io$s !o s%"+ !+id peso$ s%"+ !+a! !+e liabili!y o& !+e pi$"ipal &o !+e a"!s a$d "o$!a"!s o& +is a,e$! e9!e$ds !o !+ose w+i"+ ae wi!+i$ !+e appae$! s"ope o& !+e a%!+oi!y "o$&eed o$ +im al!+o%,+ $o a"!%al a%!+oi!y !o do s%"+ a"!s o !o ma2e s%"+ "o$!a"!s +as bee$ "o$&eed. Appae$! a%!+oi!y o w+a! is some!imes e&eed !o as !+e /+oldi$, o%!7 !+eoy o do"!i$e o& os!e$sible a,e$"y imposes liabili!y $o! as !+e es%l! o& !+e eali!y o& a "o$!a"!%al ela!io$s+ip b%! a!+e be"a%se o& !+e a"!io$s o& a pi$"ipal o a$ employe i$ some+ow misleadi$, !+e p%bli" i$!o belie#i$, !+a! !+e ela!io$s+ip o !+e a%!+oi!y e9is!s. T+e e9is!e$"e o& appae$! a%!+oi!y may be as"e!ai$ed !+o%,+ 346 !+e ,e$eal ma$$e i$ w+i"+ !+e "opoa!io$ +olds o%! a$ o&&i"e o a,e$! as +a#i$, !+e powe !o a"! o i$ o!+e wods !+e appae$! a%!+oi!y !o a"! i$ ,e$eal wi!+ w+i"+ i! "lo!+es +im; o 3*6 !+e a"H%ies"e$"e i$ +is a"!s o& a pa!i"%la $a!%e wi!+ a"!%al o "o$s!%"!i#e 2$owled,e !+eeo& w+e!+e wi!+i$ o beyo$d !+e s"ope o& +is odi$ay powes. I! eH%ies pese$!a!io$ o& e#ide$"e o& simila a"!3s6 e9e"%!ed ei!+e i$ i!s &a#o o i$ &a#o o& o!+e pa!ies. Easily dis"e$ible &om !+e &oe,oi$, is !+a! appae$! a%!+oi!y is de!emi$ed o$ly by !+e a"!s o& !+e pi$"ipal a$d $o! by !+e a"!s o& !+e a,e$!. T+e pi$"ipal is !+ee&oe $o! espo$sible w+ee !+e a,e$!?s ow$ "o$d%"! a$d s!a!eme$!s +a#e "ea!ed !+e appae$! a%!+oi!y. I$ !+is "ase $o! a si$,le a"! o& espo$de$! a"!i$, !+o%,+ i!s oad o& @ie"!os was "i!ed as +a#i$, "lo!+ed i!s ,e$eal ma$a,e wi!+ appae$! a%!+oi!y !o e9e"%!e !+e "o$!a"! wi!+ i!. Sargasso !onstruction evelop(ent !orporation 7 Pick Shovel, Inc.7Atlantic ?rectors, Inc.7 ;oint 0enture vs. Philippine Ports Authority, ".R. #o. $2&<, ;uly &, +$. A,e$"y; do"!i$e o& appae$! a%!+oi!y. U$de !+e do"!i$e o& appae$! a%!+oi!y a"!s a$d "o$!a"!s o& !+e a,e$! as ae wi!+i$ !+e appae$! s"ope o& !+e a%!+oi!y "o$&eed o$ +im al!+o%,+ $o a"!%al a%!+oi!y !o do s%"+ a"!s o !o ma2e s%"+ "o$!a"!s +as bee$ "o$&eed bi$d !+e pi$"ipal. T+e pi$"ipal?s liabili!y +owe#e is limi!ed o$ly !o !+id peso$s w+o +a#e bee$ led easo$ably !o belie#e )y the conduct of the principal !+a! s%"+ a"!%al a%!+oi!y e9is!s al!+o%,+ $o$e was ,i#e$. I$ o!+e wods appae$! a%!+oi!y is de!emi$ed o$ly by !+e a"!s o& !+e pi$"ipal a$d $o! by !+e a"!s o& !+e a,e$!. T+ee "a$ be $o appae$! a%!+oi!y o& a$ a,e$! wi!+o%! a"!s o "o$d%"! o$ !+e pa! o& !+e pi$"ipal; s%"+ a"!s o "o$d%"! m%s! +a#e bee$ 2$ow$ a$d elied %po$ i$ ,ood &ai!+ as a es%l! o& !+e e9e"ise o& easo$able p%de$"e by a !+id pa!y as "laima$! a$d s%"+ a"!s o "o$d%"! m%s! +a#e pod%"ed a "+a$,e o& posi!io$ !o !+e !+id pa!y?s de!ime$!. I$ !+e pese$! "ase !+e de"isio$ o& !+e !ial "o%! was %!!ely sile$! o$ !+e ma$$e by w+i"+ !+e ba$2 as s%pposed pi$"ipal / 7 / 7
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"o$"l%sio$ !+a! Mo$di,o +as bee$ "lo!+ed wi!+ /appae$! a%!+oi!y7 !o #ebally al!e !ems o& wi!!e$ "o$!a"!s espe"ially w+e$ #iewed a,ai$s! !+e !elli$, "i"%ms!a$"es o& !+is "ase. I! is a se!!led %le !+a! peso$s deali$, wi!+ a$ a,e$! ae bo%$d a! !+ei peil i& !+ey wo%ld +old !+e pi$"ipal liable !o as"e!ai$ $o! o$ly !+e &a"! o& a,e$"y b%! also !+e $a!%e a$d e9!e$! o& !+e a,e$!?s a%!+oi!y a$d i$ "ase ei!+e is "o$!o#e!ed !+e b%de$ o& poo& is %po$ !+em !o es!ablis+ i!. As pa!ies !o !+e mo!,a,e "o$!a"! !+e pe!i!io$es ae e9pe"!ed !o abide by i!s !ems. T+e s%bseH%e$! p%po!ed a,eeme$! is o& $o mome$! a$d "a$$o! pe%di"e >CR as i! is beyo$d Mo$di,o?s a"!%al o appae$! a%!+oi!y as abo#e dis"%ssed. 0ioleta udtud Banate, et al. vs. Philippine !ountryside Rural Bank MLiloan, !e)uN, Inc. and eofilo Soon, ;r., ".R. #o. $'<%+&, ;uly $<, +$. A,e$"y; pi$"iple o& appae$! a%!+oi!y; a,e$"y ela!io$s+ip be!wee$ +ospi!al a$d do"!os w+o pa"!i"e i$ i!s pemises. T+is Co%! +olds !+a! >SI 3!+e ow$e o& !+e +ospi!al6 is liable !o !+e A,a$as $o! %$de !+e pi$"iple o& respondeat superior &o la"2 o& e#ide$"e o& a$ employme$! ela!io$s+ip wi!+ a @. Ampil 3w+o +ad le&! !wo pie"es o& ,a%-e i$ !+e body o& a pa!ie$! +e +ad opea!ed o$6 b%! %$de !+e pi$"iple o& os!e$sible a,e$"y &o !+e $e,li,e$"e o& @. Ampil a$d pro hac vice, %$de !+e pi$"iple o& "opoa!e $e,li,e$"e &o i!s &ail%e !o pe&om i!s d%!ies as a +ospi!al. W+ile i$ !+eoy a +ospi!al as a %idi"al e$!i!y "a$$o! pa"!i"e medi"i$e i$ eali!y i! %!ili-es do"!os s%,eo$s a$d medi"al pa"!i!io$es i$ !+e "o$d%"! o& i!s b%si$ess o& &a"ili!a!i$, medi"al a$d s%,i"al !ea!me$!. Wi!+i$ !+a! eali!y !+ee le,al ela!io$s+ips "iss"oss: 346 be!wee$ !+e +ospi!al a$d !+e do"!o pa"!i"i$, wi!+i$ i!s pemises; 3*6 be!wee$ !+e +ospi!al a$d !+e pa!ie$! bei$, !ea!ed o e9ami$ed wi!+i$ i!s pemises a$d 3(6 be!wee$ !+e pa!ie$! a$d !+e do"!o. T+e e9a"! $a!%e o& ea"+ ela!io$s+ip de!emi$es !+e basis a$d e9!e$! o& !+e liabili!y o& !+e +ospi!al &o !+e $e,li,e$"e o& !+e do"!o. W+ee a$ employme$! ela!io$s+ip e9is!s !+e +ospi!al may be +eld #i"aio%sly liable %$de A!i"le *4K i$ ela!io$ !o A!i"le *40) o& !+e Ci#il Code o !+e pi$"iple o& respondeat superior. E#e$ w+e$ $o employme$! ela!io$s+ip e9is!s b%! i! is s+ow$ !+a! !+e +ospi!al +olds o%! !o !+e pa!ie$! !+a! !+e do"!o is i!s a,e$! !+e +ospi!al may s!ill be #i"aio%sly liable %$de A!i"le *4K i$ ela!io$ !o A!i"le 4<(4 a$d A!i"le 40' o& !+e Ci#il Code o !+e pi$"iple o& appae$! a%!+oi!y. Moeo#e e,adless o& i!s ela!io$s+ip wi!+ !+e do"!o !+e +ospi!al may be +eld die"!ly liable !o !+e pa!ie$! &o i!s ow$ $e,li,e$"e o &ail%e !o &ollow es!ablis+ed s!a$dad o& "o$d%"! !o w+i"+ i! s+o%ld "o$&om as a "opoa!io$. T+e "o$"%e$! &i$di$, o& !+e RTC a$d !+e CA !+a! >SI was $o! !+e employe o& @. Ampil is "oe"!. Co$seH%e$!ly >SI "a$$o! be +eld #i"aio%sly liable &o !+e $e,li,e$"e o& @. Ampil %$de !+e pi$"iple o& respondeat superior. T+ee is +owe#e ample e#ide$"e !+a! !+e +ospi!al 3>SI6 +eld o%! !o !+e pa!ie$! 3=a!i#idad6 !+a! !+e do"!o 3@. Ampil6 was i!s a,e$!. >ese$! ae !+e !wo &a"!os !+a! de!emi$e appae$! a%!+oi!y: &is! !+e +ospi!al?s implied ma$i&es!a!io$ !o !+e pa!ie$! w+i"+ led !+e la!!e !o "o$"l%de !+a! !+e do"!o was !+e +ospi!al?s a,e$!; a$d se"o$d !+e pa!ie$!?s elia$"e %po$ !+e "o$d%"! o& !+e +ospi!al a$d !+e do"!o "o$sis!e$! wi!+ odi$ay "ae a$d p%de$"e. Cigester1s #ote: 9ere, the Supre(e !ourt sets out @hat it )elieves are the indications of agency. e have nu()ered the pre(ises.D 346 E$iH%e !+e +%sba$d o& !+e pa!ie$! !es!i&ied !+a! +e "o$s%l!ed @. Ampil e,adi$, !+e "o$di!io$ o& +is wi&e; !+a! a&!e !+e mee!i$, a$d as ad#ised by @. Ampil +e / asked D+is wi&e !o ,o !o Medi"al Ci!y !o be e9ami$ed by D@. Ampil7; a$d !+a! !+e $e9! day +e !old +is da%,+!e !o !a2e +e mo!+e !o @. Ampil. T+is !imeli$e i$di"a!es !+a! i! was E$iH%e w+o a"!%ally made !+e de"isio$ o$ w+om =a!i#idad s+o%ld "o$s%l! a$d w+ee a$d !+a! !+e la!!e meely a""eded !o i!. I! e9plai$s !+e !es!imo$y o& =a!i#idad !+a! s+e "o$s%l!ed @. Ampil a! !+e i$s!i,a!io$ o& +e da%,+!e. 3*6 Moeo#e w+e$ as2ed w+a! impelled +im !o "+oose @. Ampil E$iH%e !es!i&ied !+a! +e +ad 2$ow$ Ampil !o be a spe"ialis! o$ !+a! pa! o& !+e body as a s%,eo$ a$d +e +ad 2$ow$ /+im !o be a s!a&& membe o& !+e Medi"al Ci!y w+i"+ is a pomi$e$! a$d 2$ow$ +ospi!al.7 Ampil was also a $ei,+bo so E$iH%e +ad e9pe"!ed /moe !+a$ !+e %s%al medi"al se#i"e !o be ,i#e$ !o %s !+a$ +is odi$ay pa!ie$!s.7 Clealy !+e de"isio$ made by E$iH%e &o =a!i#idad !o "o$s%l! @. Ampil was si,$i&i"a$!ly bya$d !+e pomi$e$!. impessio$ !+a! @. Ampil a s!a&& membe Medi"al Ci!y Ge$eal a$dela!ed !+a! said +ospi!al was i$&l%e$"ed well 2$ow$ E$iH%e loo2edwas %po$ @. Ampil $o!o&as i$depe$de$! o& b%! 8ospi!al as i$!e,ally !o Medi"al Ci!y. 3(6 >SI?s a"!s !e$ded !o "o$&im a$d ei$&o"e a!+e !+a$ $e,a!e E$iH%e?s #iew. I! is o& e"od !+a! >SI eH%ied a /"o$se$! &o +ospi!al "ae7 !o be si,$ed pepaa!oy !o !+e s%,ey o& =a!i#idad. T+e &om eads: />emissio$ is +eeby ,i#e$ !o !+e medi"al $%si$, a$d laboa!oy s!a&& o& !+e Medi"al Ci!y Ge$eal 8ospi!al !o pe&om s%"+ dia,$os!i" po"ed%es a$d !o admi$is!e s%"+ medi"a!io$s a$d !ea!me$!s as +a- " ""+" $""ssa#- o# a3!sal" - &'" '-s!!a$s of &'!s 'os!&al &o a$d d%i$, !+e "o$&i$eme$! o& 999. 3emp+asis s%pplied6.7 y s%"+ s!a!eme$! >SI #i!%ally ei$&o"ed !+e p%bli" impessio$ !+a! @. Ampil was a p+ysi"ia$ o& i!s +ospi!al a!+e !+a$ o$e i$depe$de$!ly pa"!i"i$, i$ i!; !+a! !+e medi"a!io$s a$d !ea!me$!s +e pes"ibed wee $e"essay a$d desiable; a$d !+a! !+e +ospi!al s!a&& was pepaed !o "ay !+em o%!. 3<6 >SI poi$!ed o%! i$ i!s memoa$d%m !+a! @. Ampil?s +ospi!al a&&ilia!io$ was $o! !+e e9"l%si#e basis o& !+e A,a$as?
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#i"aio%sly liable &o !+e $e,li,e$"e o& @. Ampil as i!s os!e$sible a,e$!. Professional Services, Inc. vs. he !ourt of Appeals, et al.7#atividad Msu)stituted )y her children /arcelino Agana III, ?nrique Agana, ;r. ?((a Agana8Andaya, ;esus Agana and Ray(und Agana and ?rrique AganaN vs. he !ourt of Appeals and ;uan uentes /iguel A(pil vs. #atividad and ?nrique Agana, ".R. #os. $+'+-27".R. #o. $+'*'27".R. #o. $+2&-, e)ruary +, +$. A,e$"y; pi$"iple o& %$dis"losed pi$"ipal. I! is a ,e$eal %le i$ !+e law o& a,e$"y !+a! i$ ode !o bi$d !+e pi$"ipal by a mo!,a,e o$ eal pope!y e9e"%!ed by a$ a,e$! i! m%s! %po$ i!s &a"e p%po! !o be made si,$ed a$d sealed i$ !+e $ame o& !+e pi$"ipal o!+ewise i! will bi$d !+e a,e$! o$ly. I! is $o! e$o%,+ meely !+a! !+e a,e$! was i$ &a"! a%!+oi-ed !o ma2e !+e mo!,a,e i& +e +as $o! a"!ed i$ !+e $ame o& !+e pi$"ipal. =ei!+e is i! odi$aily s%&&i"ie$! !+a! i$ !+e mo!,a,e !+e a,e$! des"ibes +imsel& as a"!i$, by #i!%e o& a powe o& a!!o$ey i& i$ &a"! !+e a,e$! +as a"!ed i$ +is ow$ $ame a$d +as se! +is ow$ +a$d a$d seal !o !+e mo!,a,e. T+is is espe"ially !%e w+ee !+e a,e$! +imsel& is a pa!y !o !+e i$s!%me$!. 8owe#e "lealy !+e body o& !+e mo!,a,e may s+ow a$d i$!e$d !+a! i! s+all be !+e a"! o& !+e pi$"ipal ye! %$less i$ &a"! i! is e9e"%!ed by !+e a,e$! &o a$d o$ be+al& o& +is pi$"ipal a$d as !+e a"! a$d deed o& !+e pi$"ipal i! is $o! #alid as !o !+e pi$"ipal. ar ?ast Bank and rust !o(pany M#o@ Bank of the Philippine IslandsN and Rolando Bora, eputy Sherrif vs. Sps. ?rnesto and Leonor !. !ayetano, ".R. #o. $2---, ;anuary +&, +$. A,e$"y; a,e$"y by es!oppel. A$ a,e$"y by es!oppel w+i"+ is simila !o !+e do"!i$e o& appae$! a%!+oi!y eH%ies poo& o& elia$"e %po$ !+e epese$!a!io$s a$d !+a! i$ !%$ $eeds poo& !+a! !+e epese$!a!io$s peda!ed !+e a"!io$ !a2e$ i$ elia$"e. T+ee "a$ be $o appae$! a%!+oi!y o& a$ a,e$! wi!+o%! a"!s o "o$d%"! o$ !+e pa! o& !+e pi$"ipal a$d s%"+ a"!s o "o$d%"! o& !+e pi$"ipal m%s! +a#e bee$ 2$ow$ a$d elied %po$ i$ ,ood &ai!+ a$d as a es%l! o& !+e e9e"ise o& easo$able p%de$"e by a !+id peso$ as "laima$! a$d s%"+ m%s! +a#e pod%"ed a "+a$,e o& posi!io$ !o i!s de!ime$!. S%"+ poo& is la"2i$, i$ !+is "ase. =un @an Byung vs. Philippine A(use(ent "a(ing !orporation, ".R. #o. $'<&&<, ece()er $$, +-. A,e$"y; implied a,e$"y. A!i"le 40' o& !+e Ci#il Code s!a!es !+a! implied a,e$"y is dei#ed &om !+e a"!s o& !+e pi$"ipal &om +is sile$"e o la"2 o& a"!io$ o +is &ail%e !o ep%dia!e !+e a,e$"y 2$owi$, !+a! a$o!+e peso$ is a"!i$, o$ +is be+al& wi!+o%! a%!+oi!y. Implied a,e$"y bei$, a$ a"!%al a,e$"y is a &a"! !o be po#ed by ded%"!io$s o i$&ee$"es &om o!+e &a"!s. O$ !+e o!+e +a$d appae$! a%!+oi!y is based o$ es!oppel a$d "a$ aise &om !wo i$s!a$"es. Fis! !+e pi$"ipal may 2$owi$,ly pemi! !+e a,e$! !o +old +imsel& o%! as +a#i$, s%"+ a%!+oi!y a$d !+e pi$"ipal be"omes es!opped !o "laim !+a! !+e a,e$! does $o! +a#e s%"+ a%!+oi!y. Se"o$d !+e pi$"ipal may "lo!+e !+e a,e$! wi!+ !+e i$di"ia o& a%!+oi!y as !o lead a easo$ably p%de$! peso$ !o belie#e !+a! !+e a,e$! a"!%ally +as s%"+ a%!+oi!y. I$ a$ a,e$"y by es!oppel !+ee is $o a,e$"y a! all b%! !+e o$e ass%mi$, !o a"! as a,e$! +as appae$! o os!e$sible al!+o%,+ $o! eal a%!+oi!y !o epese$! a$o!+e. T+e law ma2es $o pes%mp!io$ o& a,e$"y a$d po#i$, i!s e9is!e$"e $a!%e a$d e9!e$! is i$"%mbe$! %po$ !+e peso$ alle,i$, i!. W+e!+e o $o! a$ a,e$"y +as bee$ "ea!ed is a H%es!io$ !o be de!emi$ed by !+e &a"! !+a! o$e epese$!s a$d is a"!i$, &o a$o!+e. =un @an Byung vs. Philippine A(use(ent "a(ing !orporation, ".R. #o. $'<&&<, ece()er $$, +-. A,e$"y; implied a,e$"y. T+e basis &o a,e$"y is epese$!a!io$ !+a! is !+e a,e$! a"!s &o a$d o$ be+al& o& !+e pi$"ipal o$ ma!!es wi!+i$ !+e s"ope o& +is a%!+oi!y a$d said a"!s +a#e !+e same le,al e&&e"! as i& !+ey wee peso$ally e9e"%!ed by !+e pi$"ipal. O$ !+e pa! o& !+e pi$"ipal !+ee m%s! be a$ a"!%al i$!e$!io$ !o appoi$! o a$ i$!e$!io$ $a!%ally i$&eable &om +is wods o a"!io$s w+ile o$ !+e pa! o& !+e a,e$! !+ee m%s! be a$ i$!e$!io$ !o a""ep! !+e appoi$!me$! a$d a"! o$ i!. Abse$! s%"+ m%!%al i$!e$! !+ee is ,e$eally $o a,e$"y. T+ee is $o implied a,e$"y i$ !+is "ase be"a%se >AGCOR did $o! +old o%! !o !+e p%bli" as !+e pi$"ipal o& AS Copoa!io$. >AGCOR?s a"!io$s did $o! mislead !+e p%bli" i$!o belie#i$, !+a! a$ a,e$"y "a$ be implied &om !+e aa$,eme$! wi!+ !+e %$2e! opea!os $o did i! +old o%! AS Copoa!io$ wi!+ a$y appae$! a%!+oi!y !o epese$! i! i$ a$y "apa"i!y. T+e %$2e! A,eeme$! was meely a "o$!a"! o& lease o& &a"ili!ies a$d se#i"es. =un @an Byung vs. Philippine A(use(ent "a(ing !orporation, ".R. #o. $'<&&<, ece()er $$, +-.
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A!. 4)*. T'" o$&#a& s'all " #"s,+" &o " a$ ";,!&al" +o#&*a*" !$ a$- of &'" follo%!$* as"s: 346 W+e$ !+e pi"e o& a sale wi!+ i,+! !o ep%"+ase is %$%s%ally i$adeH%a!e; 3*6 W+e$ !+e #e$do emai$s i$ possessio$ as lessee o o!+ewise; 3(6 W+e$ %po$ o a&!e !+e e9pia!io$ o& !+e i,+! !o ep%"+ase a$o!+e i$s!%me$! e9!e$di$, !+e peiod o& edemp!io$ o ,a$!i$, a $ew peiod is e9e"%!ed; 3<6 W+e$ !+e p%"+ase e!ai$s &o +imsel& a pa! o& !+e p%"+ase pi"e; 356 W+e$ !+e #e$do bi$ds +imsel& !o pay !+e !a9es o$ !+e !+i$, sold; (5) I$ a$- o&'"# as" %'"#" !& +a- " fa!#l- !$f"##" &'a& &'" #"al !$&"$&!o$ of &'" a#&!"s !s &'a& &'" &#a$sa&!o$ s'all s",#" &'" a-+"$& of a "& o# &'" "#fo#+a$" of a$- o&'"# ol!*a&!o$. I$ a$y o& !+e &oe,oi$, "ases a$y mo$ey &%i!s o o!+e be$e&i! !o be e"ei#ed by !+e #e$dee as e$! o o!+ewise s+all be "o$sideed as i$!ees! w+i"+ s+all be s%be"! !o !+e %s%y laws. DEmp+asis o%s. ased o$ Lomises? alle,a!io$s i$ +is pleadi$,s we "o$side !+ee "i"%ms!a$"es !o de!emi$e w+e!+e +is "laim is wellB s%ppo!ed. irst o+$$y was a mee "olle,e s!%de$! depe$de$! o$ +is pae$!s &o s%ppo! w+e$ !+e a,eeme$! was e9e"%!ed a$d i! was o+$$y?s mo!+e @omes w+o was !+e pa!y a"!%ally i$!ees!ed i$ a"H%ii$, !+e ma2e! s!alls. Second Lomises e"ei#ed o$ly ><0))).)) o& !+e >0))).)) !+a! o+$$y "laimed +e ,a#e as dow$ payme$!; Lomises said !+a! !+e >*)))).)) epese$!ed i$!ees!s o$ !+e loa$. hird Lomises e!ai$ed possessio$ o& !+e ma2e! s!alls e#e$ a&!e !+e e9e"%!io$ o& !+e a,eeme$!. W+e!+e sepaa!ely o !a2e$ !o,e!+e &'"s" !#,+s&a$"s o $o& s,o#& a o$l,s!o$ &'a& &'" a#&!"s o$l- !$&"$" &o "$&"# !$&o a o$&#a& of loa$. T+a! o+$$y was a mee s!%de$! w+e$ !+e a,eeme$! was e9e"%!ed does $o! i$di"a!e !+a! +e +ad $o &i$a$"ial "apa"i!y !o pay !+e p%"+ase pi"e o& >*)))).)). As !o !+e se"o$d poi$! Lomises "o$!e$ds !+a! o& !+e >0))).)) ,i#e$ by o+$$y +e o$ly e"ei#ed ><0))).)) wi!+ !+e emai$i$, >*)))).)) e!ai$ed by o+$$y as i$!ees! o$ !+e loa$. 8owe#e !+e !es!imo$ies o& !+e wi!$esses pese$!ed d%i$, !ial i$"l%di$, Lomises +imsel& $e,a!e !+is "laim. O$ !+e !+id poi$! !+a! Lomises e!ai$ed possessio$ o& !+e ma2e! s!alls e#e$ a&!e !+e e9e"%!io$ o& +is a,eeme$! wi!+ o+$$y is also $o! a$ i$di"a!io$ !+a! !+e !%e !a$sa"!io$ be!wee$ !+em was o$e o& loa$. o+$$y +ad ye! !o "omple!e +is payme$! a$d %$!il Lomises de"ided !o &oe,o wi!+ !+ei a,eeme$! +ad &o% moe mo$!+s !o pay; %$!il !+e$ Lomises e!ai$ed ow$es+ip a$d possessio$ o& !+e ma2e! s!alls. 8e$"e !+e CA was "oe"! i$ "+aa"!ei-i$, !+e a,eeme$! be!wee$ o+$$y a$d Lomises as a sale o& impo#eme$!s a$d assi,$me$! o& lease+old i,+!s. Lo(ises Aludos, deceased, su)stituted )y lora Aludos vs. ;ohnny /. Suerte ; G.R. =o. 45*05 %$e 40 *)4*. EH%i!able mo!,a,e; i,+! o& edemp!io$. T+e e9is!e$"e o& a$y o$e o& !+e "o$di!io$s e$%mea!ed %$de A!i"le 4)* o& !+e !ivil !ode $o! a "o$"%e$"e o& all o o& a maoi!y !+eeo& s%&&i"es !o ,i#e ise !o !+e pes%mp!io$ !+a! !+e "o$!a"! is a$ eH%i!able mo!,a,e. T+e po#isio$s o& !+e !ivil !ode ,o#e$i$, eH%i!able mo!,a,es dis,%ised as sale "o$!a"!s ae pimaily desi,$ed !o "%!ail !+e e#ils bo%,+! abo%! by "o$!a"!s o& sale wi!+ i,+! !o ep%"+ase pa!i"%laly !+e "i"%m#e$!io$ o& !+e %s%y law a$d pactu( co((issoriu(. Co%!s +a#e !a2e$ %di"ial $o!i"e o& !+e wellB2$ow$ &a"! !+a! "o$!a"!s o& sale wi!+ i,+! !o ep%"+ase +a#e bee$ &eH%e$!ly eso!ed !o i$ ode !o "o$"eal !+e !%e $a!%e o& a "o$!a"! that is a loa$ se"%ed by a mo!,a,e. I! is a eali!y !+a! ,a#e &i$a$"ial dis!ess e$des peso$s +adBpessed !o mee! e#e$ !+ei basi" $eeds o !o espo$d !o a$ eme,e$"y lea#i$, $o "+oi"e !o !+em b%! !o si,$ deeds o& absol%!e sale o& pope!y o deeds o& sale wi!+ pacto de retro i& o$ly !o ob!ai$ !+e m%"+B$eeded loa$ &om %$s"%p%lo%s mo$ey le$des. T+is eali!y pe"isely e9plai$s w+y !+e pe!i$e$! po#isio$ o& !+e !ivil !ode i$"l%des a pe"%lia %le "o$"e$i$, !+e peiod o& edemp!io$ !o wi!: A!. 4)*. T+e "o$!a"! s+all be pes%med !o be a$ eH%i!able mo!,a,e i$ a$y o& !+e &ollowi$, "ases:
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999 Os!e$sibly !+e law allows a ne@ peiod o& edemp!io$ !o be a,eed %po$ o ,a$!ed e#e$ a&!e !+e e9pia!io$ o& !+e eH%i!able mo!,a,o?s i,+! !o ep%"+ase a$d !ea!s s%"+ e9!e$sio$ as o$e o& !+e i$di"a!os !+a! !+e !%e a,eeme$! be!wee$ !+e pa!ies is a$ eH%i!able mo!,a,e $o! a sale wi!+ i,+! !o ep%"+ase. 9eirs of ;ose Reyes, r. na(ely> /agdalena !. Reyes, et al. vs. A(anda S. Reyes, et al., ".R. #o. $&%<22, August $<, +$. Loa$; pomissoy $o!e: eleme$!s. To as"e!ai$ w+e!+e o $o! espo$de$! is bo%$d by !+e pomissoy $o!es i! m%s! be es!ablis+ed !+a! all !+e eleme$!s o& a "o$!a"! o& loa$ ae pese$!. Li2e a$y o!+e "o$!a"! a "o$!a"! o& loa$ is s%be"! !o !+e %les ,o#e$i$, !+e eH%isi!es a$d #alidi!y o& "o$!a"!s i$ ,e$eal. I! is eleme$!ay i$ !+is %isdi"!io$ !+a! w+a! de!emi$es !+e #alidi!y o& a "o$!a"! i$ ,e$eal is !+e pese$"e o& !+e &ollowi$, eleme$!s: 346 "o$se$! o& !+e "o$!a"!i$, pa!ies; 3*6 obe"! "e!ai$ w+i"+ is !+e s%be"! ma!!e o& !+e "o$!a"!; a$d 3(6 "a%se o& !+e obli,a!io$ w+i"+ is es!ablis+ed. U$de A!i"le 4(5< o& !+e Ci#il Code i! is pes%med !+a! "o$sidea!io$ e9is!s a$d is law&%l %$less !+e deb!o po#es !+e "o$!ay. Moeo#e %$de Se"!io$ ( R%le 4(4 o& !+e R%les o& Co%! !+e &ollowi$, ae disp%!able pes%mp!io$s: 346 pi#a!e !a$sa"!io$s +a#e bee$ &ai a$d e,%la; 3*6 !+e odi$ay "o%se o& b%si$ess +as bee$ &ollowed; a$d 3(6 !+ee was s%&&i"ie$! "o$sidea!io$ &o a "o$!a"!. Pentacapital Invest(ent !orporation vs. /akilito /ahinay7Pentacapital Invest(ent !orporation 0s. /ikilito /ahinay, ".R. #o. $2$2<', ;uly &, +$ I$!ees! a!e. We a&&im !+e i$!ees! a!e de"eed by !+e CA. S!ip%la!ed i$!ees! a!es ae ille,al i& !+ey ae %$"o$s"io$able a$d "o%!s ae allowed !o !empe i$!ees! a!es w+e$ $e"essay. I$ e9e"isi$, !+is #es!ed powe !o de!emi$e w+a! is i$iH%i!o%s a$d %$"o$s"io$able !+e Co%! m%s! "o$side !+e "i"%ms!a$"es o& ea"+ "ase. W+a! may be i$iH%i!o%s a$d %$"o$s"io$able i$ o$e "ase may be %s! i$ a$o!+e. We "a$$o! %p+old !+e pe!i!io$e?s i$#o"a!io$ o& o% %li$, i$ BP v. !ourt of Appeals w+eei$ !+e i$!ees! a!e imposed was ed%"ed !o 4) pe a$$%m. T+e o#eidi$, "i"%ms!a$"e pomp!i$, s%"+ po$o%$"eme$! was !+e e,%la payme$!s made by !+e boowe. E#ide$!ly s%"+ &a"! is wa$!i$, i$ !+e "ase a! ba +e$"e !+e pe!i!io$e "a$$o! dema$d &o a simila i$!ees! a!e. T+e "i"%ms!a$"es a!!e$da$! +eei$ ae simila !o !+ose i$ rade Invest(ent evelop(ent !orporation of the Philippines v. Ro)lett Industrial !onstruction !orporation w+eei$ we le#ied !+e le,al i$!ees! a!e o& 4* pe a$$%m. 8owe#e p%s%a$! !o Bank of the Philippine Islands, Inc. v. =u we deem i! pope !o &%!+e ed%"e !+e pe$al!y "+a,e de"eed by !+e CA &om * pe mo$!+ !o 4 pe mo$!+ o 4* pe a$$%m i$ #iew o& !+e &ollowi$, &a"!os: 346 espo$de$! +as aleady e"ei#ed >K5)<5**.*K i$ pe$al!y "+a,es a$d 3*6 !+e loa$ e9!e$ded !o espo$de$! was a s+o!B!em "edi! &a"ili!y. R"/ Industries, Inc. vs. 4nited Pacific !apital !orporation; G.R. =o. 4'
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Followi$, !+e ,%ideli$es abo#e !+e le,al i$!ees! o& per annu( is !o be imposed &om =o#embe 4 4''K !+e da!e o& !+e las! dema$d a$d 4* i$ lie% o& &om !+e da!e !+is de"isio$ be"omes &i$al %$!il &%lly paid. Repu)lic of the Philippines, represented )y the chief, Philippine #ational Police vs. hi hu huy e "u5(an, G.R. =o. 4K5)*4. %$e 45 *)44. Loa$; pe&e"!io$. U$de A!i"le 4'(< o& !+e Ci#il Code a loa$ "o$!a"! is pe&e"!ed o$ly %po$ !+e deli#ey o& !+e obe"! o& !+e "o$!a"!. I$ !+is "ase al!+o%,+ pe!i!io$es applied &o a >( millio$ loa$ o$ly !+e amo%$! o& >4 millio$ was appo#ed by !+e ba$2 be"a%se pe!i!io$es be"ame "olla!eally de&i"ie$! w+e$ !+ey &ailed !o p%"+ase TCT =o. TB**K((4 w+i"+ +ad a$ appaised #al%e o& >4'<<))).)). 8e$"e o$ Ma"+ 4K 4''K o$ly !+e amo%$! o& >4 millio$ was eleased by !+e ba$2 !o pe!i!io$es. Upo$ e"eip! o& !+e appo#ed loa$ o$ Ma"+ 4K 4''K pe!i!io$es e9e"%!ed a pomissoy $o!e &o !+e amo%$! o& >4 millio$. As se"%i!y &o !+e >4 millio$ loa$ pe!i!io$es o$ !+e same day e9e"%!ed i$ &a#o o& !+e ba$2 a eal es!a!e mo!,a,e o#e !+e pope!ies "o#eed by TCT =os. TB*(K'5 TB*(K' TB*(K'0 TB4<(0( TB4<(K*' TB**54(4 a$d TB**54(*. Clealy "o$!ay !o !+e &i$di$,s o& !+e RTC !+e loa$ "o$!a"! was pe&e"!ed o$ Ma"+ 4K 4''K w+e$ pe!i!io$es e"ei#ed !+e >4 millio$ loa$ w+i"+ was !+e obe"! o& bo!+ !+e pomissoy $o!e a$d !+e eal es!a!e mo!,a,e e9e"%!ed by pe!i!io$es i$ &a#o o& !+e ba$2. Spouses ilfredo and Brigida Palada vs. Solid)ank !orporation, et al., G.R. =o. 4K***K. %$e *' *)44 Loa$; #alid po#isio$ o$ i$!ees! a!e. T+e Co%! +as pe#io%sly %p+eld as #alid !+e proviso i$ loa$s !+a! !+e i$!ees! a!e wo%ld be made !o depe$d o$ !+e pe#aili$, ma2e! a!e. S%"+ po#isio$ does $o! si,$i&y a$ a%!oma!i" i$"ease i$ !+e i$!ees!. I! simply mea$s !+a! !+e ba$2 may ad%s! !+e i$!ees! a""odi$, !o !+e pe#aili$, ma2e! a!e. T+is may es%l! !o ei!+e a$ i$"ease o a de"ease i$ !+e i$!ees!. Lotto Restaurant !orporation, represented )y S4A I/ "3, 3. BPI a(ily Savings Bank, Inc. ; G.R. =o. 4KK*). Ma"+ () *)44 I$!ees!; le,al i$!ees!. T+e Co%! ei!ea!ed !+e ,%ideli$es o$ !+e a!e o& le,al i$!ees! as laid o%! i$ ?astern Shipping Lines Inc. v. !ourt of Appeals: I. W+e$ a$ obli,a!io$ e,adless o& i!s so%"e i.e. law "o$!a"!s H%asiB"o$!a"!s deli"!s o H%asiBdeli"!s is bea"+ed !+e "o$!a#e$o "a$meas%e be +eldo&liable &o dama,es. T+e po#isio$s %$de Ti!le VIII o$ /@ama,es7 o& !+e Ci#il Code ,o#e$ i$ de!emi$i$, !+e e"o#eable dama,es. II. Wi!+ e,ad pa!i"%laly !o a$ awad o& i$!ees! i$ !+e "o$"ep! o& a"!%al a$d "ompe$sa!oy dama,es !+e a!e o& i$!ees! as well as !+e a""%al !+eeo& is imposed as &ollows: 4. W+e$ !+e obli,a!io$ is bea"+ed a$d i! "o$sis!s i$ !+e payme$! o& a s%m o& mo$ey i.e. a loa$ o &obeaa$"e o& mo$ey !+e i$!ees! d%e s+o%ld be !+a! w+i"+ may +a#e bee$ s!ip%la!ed i$ wi!i$,. F%!+emoe !+e i$!ees! d%e s+all i!sel& ea$ le,al i$!ees! &om !+e !ime i! is %di"ially dema$ded. I$ !+e abse$"e o& s!ip%la!io$ !+e a!e o& i$!ees! s+all be 4* pe a$$%m !o be "omp%!ed &om de&a%l! i.e. &om %di"ial o e9!a%di"ial dema$d %$de a$d s%be"! !o !+e po#isio$s o& A!i"le 44' o& !+e Ci#il Code. *. hen an o)ligation, not constituting a loan or for)earance of (oney, is )reached, an interest on the a(ount of da(ages a@arded (ay )e i(posed at the discretion of the court at the rate of ' per annu(. =o i$!ees! +owe#e s+all be ad%d,ed o$ %$liH%ida!ed "laims o dama,es e9"ep! w+e$ o %$!il !+e dema$d "a$ be es!ablis+ed wi!+ easo$able "e!ai$!y. A""odi$,ly w+ee !+e dema$d is es!ablis+ed wi!+ easo$able "e!ai$!y !+e i$!ees! s+all be,i$ !o %$ &om !+e !ime !+e "laim is made %di"ially o e9!a%di"ially 3A!. 44' Ci#il Code6 b%! w+e$ s%"+ "e!ai$!y "a$$o! be so easo$ably es!ablis+ed a! !+e !ime !+e dema$d is made !+e i$!ees! s+all be,i$ !o %$ o$ly &om !+e da!e !+e %d,me$! o& !+e "o%! is made 3a! w+i"+ !ime !+e H%a$!i&i"a!io$ o& dama,es may be deemed !o +a#e bee$ easo$ably as"e!ai$ed6. T+e a"!%al base &o !+e "omp%!a!io$ o& le,al i$!ees! s+all i$ a$y "ase be . . . !+e amo%$! &i$ally ad%d,ed. (. W+e$ !+e %d,me$! o& !+e "o%! awadi$, a s%m o& mo$ey be"omes &i$al a$d e9e"%!oy !+e a!e o& le,al i$!ees! w+e!+e !+e "ase &alls %$de paa,ap+ 4 o paa,ap+ * abo#e s+all be 4* pe a$$%m &om s%"+ &i$ali!y %$!il i!s sa!is&a"!io$ !+is i$!eim peiod bei$, deemed !o be by !+e$ a$ eH%i#ale$! !o &obeaa$"e o& "edi!.3Emp+asis s%pplied6 ;ose /arques, et al. vs. ar ?ast Bank and rust !o(pany, et al. 7 ar ?ast Ban and rust !o(pany, et al. vs. ;ose /arques, et al.> ".R. #o. $2$<2-7".R. #o. $2$*$-, ;anuary $, +$$.
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i$!ees! &om !+e !ime i! is %di"ially dema$ded. I$ !+e abse$"e o& s!ip%la!io$ !+e a!e o& i$!ees! s+all be 4* pe a$$%m !o be "omp%!ed &om de&a%l! i.e. &om %di"ial o e9!a%di"ial dema$d %$de a$d s%be"! !o !+e po#isio$s o& A!i"le 44' o& !+e Ci#il Code. *. W+e$ a$ obli,a!io$ $o! "o$s!i!%!i$, a loa$ o &obeaa$"e o& mo$ey is bea"+ed a$ i$!ees! o$ !+e amo%$! o& dama,es awaded may be imposed a! !+e dis"e!io$ o& !+e "o%! a! !+e a!e o& pe a$$%m. =o i$!ees! +owe#e s+all be ad%d,ed o$ %$liH%ida!ed "laims o dama,es e9"ep! w+e$ o %$!il !+e dema$d "a$ be es!ablis+ed wi!+ easo$able "e!ai$!y. A""odi$,ly w+ee !+e dema$d is es!ablis+ed wi!+ easo$able "e!ai$!y !+e i$!ees! s+all be,i$ !o %$ &om !+e !ime !+e "laim is made %di"ially o e9!a%di"ially 3A!. 44' Ci#il Code6 b%! w+e$ s%"+ "e!ai$!y "a$$o! be so easo$ably es!ablis+ed a! !+e !ime !+e dema$d is made !+e i$!ees! s+all be,i$ !o %$ o$ly &om !+e da!e !+e %d,me$! o& !+e "o%! is made 3a! w+i"+ !ime !+e H%a$!i&i"a!io$ o& dama,es may be deemed !o +a#e bee$ easo$ably as"e!ai$ed6. T+e a"!%al base &o !+e "omp%!a!io$ o& le,al i$!ees! s+all i$ a$y "ase be o$ !+e amo%$! &i$ally ad%d,ed. (. W+e$ !+e %d,me$! o& !+e "o%! awadi$, a s%m o& mo$ey be"omes &i$al a$d e9e"%!oy !+e a!e o& le,al i$!ees! w+e!+e !+e "ase &alls %$de paa,ap+ 4 o paa,ap+ * abo#e s+all be 4* pe a$$%m &om s%"+ &i$ali!y %$!il i!s sa!is&a"!io$ !+is i$!eim peiod bei$, deemed !o be by !+e$ a$ eH%i#ale$! !o a &obeaa$"e o& "edi!. Land Bank of the Philippines vs. Alfredo 3ng, ".R. #o. $-2&&, #ove()er +*, +$. Le,al i$!ees!. I$asm%"+ as !+e "ase a! ba i$#ol#es a$ obli,a!io$ $o! aisi$, &om a loa$ o &obeaa$"e o& mo$ey b%! "o$sis!s i$ !+e payme$! o& a s%m o& mo$ey !+e le,al a!e o& i$!ees! is per annu( o& !+e amo%$! dema$ded. I$!ees! s+all "o$!i$%e !o %$ &om Feb%ay 4* 4''K !+e da!e w+e$ i!ai"+ dema$ded payme$! o& !+e s%m amo%$!i$, !o >'*4)0(.4) &om Lo"si$ 3a$d $o! &om !+e !ime o& !+e &ili$, o& !+e Complai$!6 %$!il &i$ali!y o& !+e @e"isio$ 3$o! %$!il &%lly paid6. T+e a!e o& i$!ees! s+all i$"ease !o 4* per annu( o$ly &om s%"+ &i$ali!y %$!il i!s sa!is&a"!io$ !+e i$!eim peiod bei$, deemed !o be eH%i#ale$! !o a &obeaa$"e o& "edi!. 0itarich !orporation vs. !hona Locsin, ".R. #o. $%$&', #ove()er $&, +$. I$!ees!. T+e S%peme Co%! %p+eld !+e imposi!io$ o& *).40' i$!ees! a!e a$d ee"!ed i!s "+aa"!ei-a!io$ as %$"o$s"io$able. I! "i!ed evelop(ent Bank of the Philippines v. a(ily oods /anufacturing !o. Ltd . w+ee !+e Co%! %p+eld !+e #alidi!y o& !+e imposi!io$ o& 40 a$d ** s!ip%la!ed a!es o& i$!ees! i$ !+e !wo pomissoy $o!es. Li2ewise i$ Spouses Bacolor v.
Banco ilipino Savings and /ortgage Bank, !+e *< i$!ees! a!e a,eed %po$ by pa!ies was +eld as $o! #iola!i#e o& !+e Us%y Law as ame$ded by >eside$!ial @e"ee =o. 44. Aniceto ". Saludo, ;r. vs. Security Bank !orporation> ".R. #o. $%**$, 3cto)er $<, +$. Le,al i$!ees!. I$ a""oda$"e wi!+ o% %li$, i$ Sta. Lucia Realty and evelop(ent v. Spouses Buenaventura !+e appli"able i$!ees! a!e o$ !+e >45(('0.)5 !o be paid by @> !o Ma"eda is pe a$$%m !o be e"2o$ed &om !+e !ime o& !+e &ili$, o& !+e "omplai$! o$ 45 O"!obe 4'0< be"a%se !+e "ase a! ba i$#ol#es a bea"+ o& obli,a!io$ a$d $o! a loa$ o &obeaa$"e o& mo$ey. We ,%ide o%sel#es wi!+ !+e %les o& !+%mb es!ablis+ed i$ ?astern Shipping Lines, Inc. v. !ourt of Appeals. 4. W+e$ !+e obli,a!io$ is bea"+ed a$d i! "o$sis!s i$ !+e payme$! o& a s%m o& mo$ey i.e. a loa$ o &obeaa$"e o& mo$ey !+e i$!ees! d%e s+o%ld be !+a! w+i"+ may +a#e bee$ s!ip%la!ed i$ wi!i$,. F%!+emoe !+e i$!ees! d%e s+all i!sel& ea$ le,al i$!ees! &om !+e !ime i! is %di"ially dema$ded. I$ !+e abse$"e o& s!ip%la!io$ !+e a!e o& i$!ees! s+all be 4* pe a$$%m !o be "omp%!ed &om de&a%l! i.e. &om %di"ial o e9!a%di"ial dema$d %$de a$d s%be"! !o !+e po#isio$s o& A!i"le 44' o& !+e Ci#il Code. *. W+e$ a$ obli,a!io$ $o! "o$s!i!%!i$, a loa$ o &obeaa$"e o& mo$ey is bea"+ed a$ i$!ees! o$ !+e amo%$! o& dama,es awaded may be imposed a! !+e discretion of the court a! !+e a!e o& per annu(. =o i$!ees! +owe#e s+all be ad%d,ed o$ %$liH%ida!ed "laims o dama,es e9"ep! w+e$ o %$!il !+e dema$d "a$ be es!ablis+ed wi!+ easo$able "e!ai$!y. A""odi$,ly w+ee !+e dema$d is es!ablis+ed wi!+ easo$able "e!ai$!y !+e i$!ees! s+all be,i$ !o %$ &om !+e !ime !+e "laim is made %di"ially o e9!a%di"ially 3A!. 44' Ci#il Code6 b%! w+e$ s%"+ "e!ai$!y "a$$o! be so easo$ably es!ablis+ed a! !+e !ime !+e dema$d is made !+e i$!ees! s+all be,i$ !o %$ o$ly &om !+e da!e !+e %d,me$! o& !+e "o%! is made 3a! w+i"+ !ime !+e H%a$!i&i"a!io$ o& dama,es may be deemed !o +a#e bee$ easo$ably as"e!ai$ed6. T+e a"!%al base &o !+e "omp%!a!io$ o& le,al i$!ees! s+all i$ a$y "ase be o$ !+e amo%$! &i$ally ad%d,ed. (. W+e$ !+e %d,me$! o& !+e "o%! awadi$, a s%m o& mo$ey be"omes &i$al a$d e9e"%!oy !+e a!e o& le,al i$!ees! w+e!+e !+e "ase &alls %$de paa,ap+ 4 o paa,ap+ * abo#e s+all be 4* pe a$$%m &om s%"+ &i$ali!y %$!il i!s sa!is&a"!io$ !+is i$!eim peiod bei$, deemed !o be by !+e$ a$ eH%i#ale$! !o a &obeaa$"e o& "edi!.
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I$!ees!; le,al a!e; w+e$ i$!ees! be,i$s !o %$ a$d o$ w+a! is base. W+e$ a$ obli,a!io$ $o! "o$s!i!%!i$, a loa$ o &obeaa$"e o& mo$ey is bea"+ed a$ i$!ees! o$ !+e amo%$! o& dama,es awaded may be imposed a! !+e discretion of the court a! !+e a!e o& per annu(. =o i$!ees! +owe#e s+all be ad%d,ed o$ %$liH%ida!ed "laims o dama,es e9"ep! w+e$ o %$!il !+e dema$d "a$ be es!ablis+ed wi!+ easo$able "e!ai$!y. A""odi$,ly w+ee !+e dema$d is es!ablis+ed wi!+ easo$able "e!ai$!y !+e i$!ees! s+all be,i$ !o %$ &om !+e !ime !+e "laim is made %di"ially o e9!aB%di"ially 3A!i"le 44' Ci#il Code6 b%! w+e$ s%"+ "e!ai$!y "a$$o! be so easo$ably es!ablis+ed a! !+e !ime !+e dema$d is made !+e i$!ees! s+all be,i$ !o %$ o$ly &om !+e da!e !+e %d,me$! o& !+e "o%! is made 3a! w+i"+ !ime !+e H%a$!i&i"a!io$ o& dama,es may be deemed !o +a#e bee$ easo$ably as"e!ai$ed6. T+e a"!%al base &o !+e "omp%!a!io$ o& le,al i$!ees! s+all i$ a$y "ase be o$ !+e amo%$! &i$ally ad%d,ed. W+e$ !+e %d,me$! o& !+e "o%! awadi$, a s%m o& mo$ey be"omes &i$al a$d e9e"%!oy !+e a!e o& le,al i$!ees! s+all be 4* pe a$$%m o& &om s%"+ &i$ali!y %$!il i!s sa!is&a"!io$ !+is i$!eim peiod bei$, deemed !o be by !+e$ a$ eH%i#ale$! !o a &obeaa$"e "edi!. Si$"e !+is "ase be&oe %s i$#ol#es a$ obli,a!io$ $o! aisi$, &om a loa$ o &obeaa$"e o& mo$ey !+e appli"able i$!ees! a!e is pe a$$%m. T+e le,al i$!ees! a!e o& s+all be "omp%!ed &om < O"!obe 4''' !+e da!e !+e le!!e o& dema$d was pes%mably e"ei#ed by !+e de&e$da$!. A$d i$ a""oda$"e wi!+ !+ese %les !+e a!e o& 4* pe a$$%m s+all be "+a,ed o$ !+e !o!al amo%$! o%!s!a$di$, &om !+e !ime !+e %d,me$! be"omes &i$al a$d e9e"%!oy %$!il i!s sa!is&a"!io$. Benny =. 9ung vs. BPI !ard inance !orp., ".R. #o. $%+<-%, ;uly +, +$. I$!ees!; %$"o$s"io$able a!e. I! is !%e !+a! pa!ies !o a loa$ a,eeme$! +a#e a wide la!i!%de !o s!ip%la!e o$ a$y i$!ees! a!e i$ #iew o& Ce$!al a$2 Ci"%la =o. ')5 seies o& 4'0* w+i"+ s%spe$ded !+e Us%y Law "eili$, o$ i$!ees! a!e e&&e"!i#e a$%ay 4 4'0(. 8owe#e i$!ees! a!es w+e$e#e %$"o$s"io$able may be eH%i!ably ed%"ed o e#e$ i$#alida!ed. I$ se#eal "ases !+is Co%! +ad de"laed as $%ll a$d #oid s!ip%la!io$s o$ i$!ees! a$d "+a,es !+a! wee &o%$d e9"essi#e i$iH%i!o%s a$d %$"o$s"io$able. S!ip%la!io$s a%!+oi-i$, !+e imposi!io$ o& i$iH%i!o%s o %$"o$s"io$able i$!ees! ae "o$!ay !o moals i& $o! a,ai$s! !+e law. U$de A!i"le 4<)' o& !+e Ci#il Code !+ese "o$!a"!s ae i$e9is!e$! a$d #oid &om !+e be,i$$i$,. T+ey "a$$o! be a!i&ied $o !+e i,+! !o se! %p !+ei ille,ali!y as a de&e$se be wai#ed. T+e $%lli!y o& !+e s!ip%la!io$ o$ !+e %s%io%s i$!ees! does $o! +owe#e a&&e"! !+e le$de?s i,+! !o e"o#e !+e pi$"ipal o& !+e loa$. =o wo%ld i! a&&e"! !+e !ems o& !+e eal es!a!e mo!,a,e. T+e i,+! !o &oe"lose !+e mo!,a,e emai$s wi!+ !+e "edi!os a$d said i,+! "a$ be e9e"ised %po$ !+e &ail%e o& !+e deb!os !o pay !+e deb! d%e. T+e deb! d%e is !o be "o$sideed wi!+o%! !+e s!ip%la!io$ o& !+e e9"essi#e i$!ees!. A le,al i$!ees! o& 4* pe a$$%m will be added i$ pla"e o& !+e e9"essi#e i$!ees! &omely imposed. T+e $%lli&i"a!io$ by !+e CA o& !+e i$!ees! a!e a$d !+e pe$al!y "+a,e a$d !+e "o$seH%e$! imposi!io$ o& a$ i$!ees! a!e o& 4* a$d pe$al!y "+a,e o& 4 pe mo$!+ "a$$o! !+ee&oe be "o$sideed a e#esible eo. Asian !athay inance and Leasing !orporation vs. Spouses !esario "ravador and #or(a e 0era and Spouses ?((a !oncepcion ". u(igpi and ederico L. u(igpi, ".R. #o. $%'&&, ;uly &, +$. I$!ees!; %$"o$s"io$able a!e. Al!+o%,+ !+e pe!i!io$ is %$mei!oio%s we &i$d !+e 5 mo$!+ly i$!ees! a!e s!ip%la!ed i$ Cla%se < o& !+e Compomise A,eeme$! !o be i$iH%i!o%s a$d %$"o$s"io$able. A""odi$,ly !+e le,al i$!ees! o& 4* pe a$$%m m%s! be imposed i$ lie% o& !+e e9"essi#e i$!ees! s!ip%la!ed i$ !+e a,eeme$!. I$ se#eal "ases we +a#e %led !+a! s!ip%la!io$s a%!+oi-i$, i$iH%i!o%s o %$"o$s"io$able i$!ees!s ae "o$!ay !o moals i& $o! a,ai$s! !+e law. I$ /edel v. !ourt of Appeals we a$$%lled a s!ip%la!ed 5.5 pe mo$!+ o per annu( i$!ees! o$ a >5))))).)) loa$ a$d a pe mo$!+ o K* per annu( i$!ees! o$ a >)))).)) loa$ espe"!i#ely &o bei$, e9"essi#e i$iH%i!o%s %$"o$s"io$able a$d e9obi!a$!. I$ Rui5 v. !ourt of Appeals we de"laed a ( mo$!+ly i$!ees! imposed o$ &o% sepaa!e loa$s !o be e9"essi#e. I$ bo!+ "ases !+e i$!ees! a!es wee ed%"ed !o 4* per annu(. I$ !+is "ase !+e 5 mo$!+ly i$!ees! a!e o ) per annu( "ompo%$ded mo$!+ly s!ip%la!ed i$ !+e asulatan is e#e$ +i,+e !+a$ !+e ( mo$!+ly i$!ees! a!e imposed i$ !+e Rui5 "ase. T+%s we similaly +old !+e 5 mo$!+ly i$!ees! !o be e9"essi#e i$iH%i!o%s %$"o$s"io$able a$d e9obi!a$! "o$!ay !o moals a$d !+e law. I! is !+ee&oe #oid a) initio &o bei$, #iola!i#e o& A!i"le 4() o& !+e Ci#il Code. La5aro Pasco and Lauro Pasco vs. 9eirs of ilo(ena e "u5(an, represented )y !resencia e "u5(an, ".R. #o. $'&&&*, ;uly +', +$. I$!ees!; %$"o$s"io$able a!e. Aside &om !+e payme$! o& !+e pi$"ipal obli,a!io$ o& >4'(0)).)) !+e pa!ies a,eed !+a! es o$de$! a i$!ees! a! !+e a!e o& *5 &om Feb%a 4K 4''K %$!il &%ll aid. S%"+ a!e +owe#e is e9"essi#e a$d !+%s
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I$!ees!; Us%y Law; $eed &o pa!ies !o a,ee o$ !+e a!e. T+e Us%y Law +ad bee$ e$deed le,ally i$e&&e"!i#e by Resol%!io$ =o. **< da!ed ( @e"embe 4'0* o& !+e Mo$e!ay oad o& !+e Ce$!al a$2 a$d la!e by Ce$!al a$2 Ci"%la =o. ')5 w+i"+ !oo2 e&&e"! o$ 4 a$%ay 4'0(. T+ese "i"%las emo#ed !+e "eili$, o$ i$!ees! a!es &o se"%ed a$d %$se"%ed loa$s e,adless o& ma!%i!y. T+e e&&e"! o& !+ese "i"%las is !o allow !+e pa!ies !o a,ee o$ a$y i$!ees! !+a! may be "+a,ed o$ a loa$. T+e #i!%al epeal o& !+e Us%y Law is wi!+i$ !+e a$,e o& %di"ial $o!i"e w+i"+ "o%!s ae bo%$d !o !a2e i$!o a""o%$!. Al!+o%,+ i$!ees! a!es ae $o lo$,e s%be"! !o a "eili$, !+e le$de s!ill does $o! +a#e a$ %$bidled li"e$se !o impose i$"eased i$!ees! a!es. T+e le$de a$d !+e boowe s+o%ld a,ee o$ !+e imposed a!e a$d s%"+ imposed a!e s+o%ld be i$ wi!i$,. T+e s!ip%la!io$s o$ i$!ees! a!e epi"i$, i$ !+e pomissoy $o!es ae #alid be"a%se 346 !+e pa!ies m%!%ally a,eed o$ said s!ip%la!io$s; 3*6 epi"i$, !a2es e&&e"! o$ly %po$ Solidba$2?s wi!!e$ $o!i"e !o >ema$e$! o& !+e $ew i$!ees! a!e; a$d 3(6 >ema$e$! +as !+e op!io$ !o pepay i!s loa$ i& >ema$e$! a$d Solidba$2 do $o! a,ee o$ !+e $ew i$!ees! a!e. T+e p+ases /ie#o"ably a%!+oi-e7 /a! a$y !ime7 a$d /ad%s!me$! o& !+e i$!ees! a!e s+all be e&&e"!i#e &om !+e da!e i$di"a!ed i$ !+e wi!!e$ $o!i"e se$! !o %s by !+e ba$2 o i& $o da!e is i$di"a!ed &om !+e !ime !+e $o!i"e was se$!7 emp+asi-e !+a! >ema$e$! s+o%ld e"ei#e a wi!!e$ $o!i"e &om Solidba$2 as a "o$di!io$ &o !+e ad%s!me$! o& !+e i$!ees! a!es. I$ ode !+a! obli,a!io$s aisi$, &om "o$!a"!s may +a#e !+e &o"e o& law be!wee$ !+e pa!ies !+ee m%s! be a m%!%ali!y be!wee$ !+e pa!ies based o$ !+ei esse$!ial eH%ali!y. A "o$!a"! "o$!ai$i$, a "o$di!io$ w+i"+ ma2es i!s &%l&illme$! depe$de$! e9"l%si#ely %po$ !+e %$"o$!olled will o& o$e o& !+e "o$!a"!i$, pa!ies is #oid. T+ee was $o s+owi$, !+a! ei!+e Solidba$2 o >ema$e$! "oe"ed ea"+ o!+e !o e$!e i$!o !+e loa$ a,eeme$!s. T+e !ems o& !+e Om$ib%s Li$e A,eeme$! a$d !+e pomissoy $o!es wee m%!%ally a$d &eely a,eed %po$ by !+e pa!ies. Solid)ank !orporation vs. Per(anent 9o(es, Inc., ".R. #o. $2$-+&, ;uly +<, +$ Le,al I$!ees!. A$ i$!ees! o& 4* pe a$$%m o$ !+e o%!s!a$di$, obli,a!io$ m%s! be imposed &om !+e !ime o& dema$d as !+e delay i$ payme$! ma2es !+e obli,a!io$ o$e o& &obeaa$"e o& mo$ey "o$&omably wi!+ !+is Co%!?s %li$, i$ ?astern Shipping Lines, Inc. v. !ourt of Appeals. /ars(an rysdale vs. Philippine "eoanalytics, et al. and "otesco Properties vs. /ars(an rysdale Land, Inc., et al., ".R. #o. $%<<2* ".R. #o. $%<<2', ;une +-, +$ . Co$!a"!s; i$!ees! a!e appli"able. T+e iss%e i$ !+is "ase is !+e i$!ees! a!e appli"able &o espo$de$!?s delay i$ !+e payme$! o& !+e bala$"e o& !+e pi"e ad%s!me$!. >e!i!io$es s%bmi! !+a! !+e CA i$ awadi$, !+e %$paid bala$"e o& !+e pi"e ad%s!me$! eed i$ &i9i$, !+e i$!ees! a!e a! 4* i$s!ead o& !+e 40 ba$2 le$di$, a!e. I$ !+is appeal pe!i!io$es alle,e !+a! !+e "o$!a"! be!wee$ !+e pa!ies "o$sis!s o& !wo pa!s !+e A,eeme$! a$d !+e Ge$eal Co$di!io$s bo!+ o& w+i"+ po#ide &o i$!ees! a! !+e ba$2 le$di$, a!e o$ a$y %$paid amo%$! d%e %$de !+e "o$!a"!. >e!i!io$es &%!+e "laim !+a! !+ee is $o!+i$, i$ !+e "o$!a"! w+i"+ eH%ies !+e "o$se$! o& !+e espo$de$! !o be ,i#e$ i$ ode !+a! pe!i!io$es "a$ "+a,e !+e ba$2 le$di$, a!e. I$ !+is "ase !+e CA aleady se!!led !+a! pe!i!io$es "o$s%l!ed espo$de$! o$ !+e imposi!io$ o& !+e pi"e ad%s!me$! a$d +eld espo$de$! liable &o !+e bala$"e o& >454)45.)K. Respo$de$! did $o! appeal &om !+e de"isio$ o& !+e CA; +e$"e espo$de$! is es!opped &om "o$!es!i$, s%"+ &a"!. 8owe#e !+e CA we$! beyo$d !+e i$!e$! o& !+e pa!ies by eH%ii$, espo$de$! !o ,i#e i!s "o$se$! !o !+e imposi!io$ o& i$!ees! be&oe pe!i!io$es "a$ +old espo$de$! liable &o i$!ees! a! !+e "%e$! ba$2 le$di$, a!e. T+is is eo$eo%s. A e#iew o& Se"!io$ *. o& !+e A,eeme$! a$d Se"!io$ ).4) o& !+e Ge$eal Co$di!io$s s+ows !+a! !+e "o$se$! o& !+e espo$de$! is $o! $eeded &o !+e imposi!io$ o& i$!ees! a! !+e "%e$! ba$2 le$di$, a!e w+i"+ o""%s %po$ a$y delay i$ payme$!. W+e$ !+e !ems o& a "o$!a"! ae "lea a$d lea#e $o do%b! as !o !+e i$!e$!io$ o& !+e "o$!a"!i$, pa!ies !+e li!eal mea$i$, o& i!s s!ip%la!io$s ,o#e$s. I$ !+ese "ases "o%!s +a#e $o a%!+oi!y !o al!e a "o$!a"! by "o$s!%"!io$ o !o ma2e a $ew "o$!a"! &o !+e pa!ies. T+e Co%!?s d%!y is "o$&i$ed !o !+e i$!epe!a!io$ o& !+e "o$!a"! w+i"+ !+e pa!ies +a#e made &o !+emsel#es wi!+o%! e,ad !o i!s wisdom o &olly as !+e "o%! "a$$o! s%pply ma!eial s!ip%la!io$s o ead i$!o !+e "o$!a"! wods w+i"+ i! does $o! "o$!ai$. I! is o$ly w+e$ !+e "o$!a"! is #a,%e a$d ambi,%o%s !+a! "o%!s ae pemi!!ed !o eso! !o "o$s!%"!io$ o& i!s !ems a$d de!emi$e !+e i$!e$!io$ o& !+e pa!ies. T+e es"ala!io$ "la%se m%s! be ead i$ "o$%$"!io$ wi!+ Se"!io$ *.5 o& !+e A,eeme$! a$d Se"!io$ ).4) o& !+e Ge$eal Co$di!io$s w+i"+ pe!ai$ !o !+e !ime o& payme$!. O$"e !+e pa!ies a,ee o$ !+e pi"e ad%s!me$! a&!e d%e "o$s%l!a!io$ i$ "omplia$"e wi!+ !+e po#isio$s o& !+e es"ala!io$ "la%se !+e a,eeme$! is i$ e&&e"! a$ ame$dme$! !o !+e oi,i$al "o$!a"! a$d ,i#es ise !o !+e liabili!y o& espo$de$! !o pay !+e ad%s!ed "os!s. U$de Se"!io$ ).4) o& !+e Ge$eal Co$di!io$s !+e espo$de$! s+all pay s%"+ liabili!y !o !+e pe!i!io$e wi!+i$ *0 days &om iss%a$"e o& !+e i$!eim "e!i&i"a!e. Upo$ espo$de$!?s &ail%e !o pay wi!+i$ !+e !ime po#ided 3*0 days6 !+e$ i! s+all be liable !o pay !+e s!ip%la!ed i$!ees!. T+is is !+e lo,i"al i$!epe!a!io$ o& !+e a,eeme$! o& !+e pa!ies o$ !+e im osi!io$ o& i$!ees!. To o#ide a "o$!a i$!e e!a!io$ as o$e e %ii$ a se aa!e "o$se$! &o !+e im osi!io$ o&
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pe a$$%m. I! is o$ly w+e$ !+e pa!ies !o a "o$!a"! +a#e &ailed !o &i9 !+e a!e o& i$!ees! o w+e$ s%"+ amo%$! is %$waa$!ed !+a! !+e Co%! will apply !+e 4* i$!ees! pe a$$%m o$ a loa$ o &obeaa$"e o& mo$ey. T+e wi!!e$ a,eeme$! e$!eed i$!o be!wee$ pe!i!io$es a$d espo$de$! po#ides &o a$ i$!ees! a! !+e "%e$! ba$2 le$di$, a!e i$ "ase o& delay i$ payme$! a$d !+e pomissoy $o!e "+a,ed a$ i$!ees! o& 40. To po#e pe!i!io$es? e$!i!leme$! !o !+e 40 ba$2 le$di$, a!e o& i$!ees! pe!i!io$es pese$!ed !+e pomissoy $o!e pepaed by espo$de$! ba$2 i!sel&. T+is pomissoy $o!e al!+o%,+ de"laed #oid by !+e lowe "o%!s be"a%se i! did $o! e9pess !+e eal i$!e$!io$ o& !+e pa!ies is s%bs!a$!ial poo& !+a! !+e ba$2 le$di$, a!e a! !+e !ime o& de&a%l! was 40 pe a$$%m. Abse$! a$y e#ide$"e o& &a%d %$d%e i$&l%e$"e o a$y #i"e o& "o$se$! e9e"ised by pe!i!io$es a,ai$s! !+e espo$de$! !+e i$!ees! a!e a,eed %po$ is bi$di$, o$ !+em. Pan Pacific Service !ontractors, Inc. et al. vs. ?quita)le P!I Bank, etc., ".R. #o. $'--2&, /arch $%, +$. I$!ees!; s!ip%la!io$ o$ i$!ees! m%s! be i$ wi!i$,. I$ !+e pese$! "ase !+e boowe ob!ai$ed a >4)))))).)) loa$ payable wi!+i$ si9 36pe mo$!+s a$%ay 0 4''< %p !o %$e 0 @%i$, !+is peiod loa$s%m s+all a$ i$!ees! o& ><)))).)) mo$!+o &o&om a !o!al obli,a!io$ o& >4*<)))).)) &o4''<. !+e si9Bmo$!+ peiod. T+is !+e a,eed "a$ea$ be "omp%!ed a! < i$!ees! pe mo$!+ b%! $o s%"+ a!e o& i$!ees! was s!ip%la!ed i$ !+e pomissoy $o!e; a!+e a fiEed su( equivalent to this rate was a,eed %po$. A!i"le 4'5 o& !+e Ci#il Code spe"i&i"ally ma$da!es !+a! /$o i$!ees! s+all be d%e %$less i! +as bee$ e9pessly s!ip%la!ed i$ wi!i$,.7 U$de !+is po#isio$ !+e payme$! o& i$!ees! i$ loa$s o &obeaa$"e o& mo$ey is allowed o$ly i&: 346 !+ee was a$ e9pess s!ip%la!io$ &o !+e payme$! o& i$!ees!; a$d 3*6 !+e a,eeme$! &o !+e payme$! o& i$!ees! was ed%"ed i$ wi!i$,. T+e "o$"%e$"e o& !+e !wo "o$di!io$s is eH%ied &o !+e payme$! o& i$!ees! a! a s!ip%la!ed a!e. T+%s !+e "o%! +eld i$ an v. 0aldehue5a a$d !hing v. #icdao !+a! "olle"!io$ o& i$!ees! wi!+o%! a$y s!ip%la!io$ i$ wi!i$, is po+ibi!ed by law. Applyi$, !+is po#isio$ we &i$d !+a! !+e i$!ees! o& ><)))).)) pe mo$!+ "oespo$ds o$ly !o !+e si9 36Bmo$!+ peiod o& !+e loa$ o &om a$%ay 0 4''< !o %$e 0 4''< as a,eed %po$ by !+e pa!ies i$ !+e pomissoy $o!e. T+eea&!e !+e i$!ees! o$ !+e loa$ s+o%ld be a! !+e le,al i$!ees! a!e o& 4* per annu( "o$sis!e$! wi!+ o% %li$, i$ ?astern Shipping Lines, Inc. v. !ourt of Appeals. I$ o!+e wods !+e &a"!s s+ow !+a! !+e pa!ies a,eed !o !+e payme$! o& a s("2!f!2 s,+ of +o$"- o& ><)))).)) pe mo$!+ &o si9 mo$!+s $o! !o a < a!e o& i$!ees! payable wi!+i$ a si9 36Bmo$!+ peiod. Pris(a !onstruction and evelop(ent !orporation and Rogelio S. Pantaleon vs. Arthur . /enchave5, ".R. #o. $'&*&, /arch -, +$ I$!ees!; w+e!+e a!e is %$"o$s"io$able. T+e "o%! $o!ed i$ !+e >isma "ase 3see abo#e di,es!6 !+a! !+e "ase o& /edel v. !ourt of Appeals was $o! appli"able. I$ /edel !+e deb!os i$ a >5))))).)) loa$ wee eH%ied !o pay a$ i$!ees! o& 5.5 pe mo$!+ a se#i"e "+a,e o& * pe a$$%m a$d a pe$al!y "+a,e o& 4 pe mo$!+ pl%s a!!o$ey?s &ee eH%i#ale$! !o *5 o& !+e amo%$! d%e %$!il !+e loa$ is &%lly paid. Ta2e$ i$ "o$%$"!io$ wi!+ !+e s!ip%la!ed se#i"e "+a,e a$d pe$al!y we &o%$d !+e i$!ees! a!e o& 5.5 !o be e9"essi#e i$iH%i!o%s %$"o$s"io$able e9obi!a$! a$d +e$"e "o$!ay !o moals !+eeby e$dei$, !+e s!ip%la!io$ $%ll a$d #oid. /edel &i$ds $o appli"a!io$ i$ !+e pese$! "ase w+ee $o o!+e s!ip%la!io$ e9is!s &o !+e payme$! o& a$y e9!a amo%$! e9"ep! a s("2!f!2 s,+ of P0000.00 "# +o$&' o$ !+e pi$"ipal o& a loa$ payable wi!+i$ si9 mo$!+s. Addi!io$ally $o iss%e o$ !+e e9"essi#e$ess o& !+e s!ip%la!ed amo%$! o& ><)))).)) pe mo$!+ was e#e p%! i$ iss%e by !+e pe!i!io$es; !+ey o$ly assailed !+e appli"a!io$ o& a < i$!ees! a!e si$"e i! was $o! a,eed %po$. I! is a &amilia do"!i$e i$ obli,a!io$s a$d "o$!a"!s !+a! !+e pa!ies ae bo%$d by !+e s!ip%la!io$s "la%ses !ems a$d "o$di!io$s !+ey +a#e a,eed !o w+i"+ is !+e law be!wee$ !+em !+e o$ly limi!a!io$ bei$, !+a! !+ese s!ip%la!io$s "la%ses !ems a$d "o$di!io$s ae $o! "o$!ay !o law moals p%bli" ode o p%bli" poli"y. T+e payme$! o& !+e s("2!f!2 s,+ of +o$"- o& ><)))).)) pe mo$!+ was #ol%$!aily a,eed %po$ by !+e pe!i!io$es a$d !+e espo$de$!. T+ee is $o!+i$, &om !+e e"ods a$d i$ &a"! !+ee is $o alle,a!io$ s+owi$, !+a! pe!i!io$es wee #i"!ims o& &a%d w+e$ !+ey e$!eed i$!o !+e a,eeme$! wi!+ !+e espo$de$!. Pris(a !onstruction and evelop(ent !orporation and Rogelio S. Pantaleon vs. Arthur . /enchave5, ".R. #o. $'&*&, /arch -, +$ Loa$; a""ommoda!io$ pa!y. T+e &a"! !+a! !+e loa$s wee %$de!a2e$ by Go$-ales w+e$ +e si,$ed as boowe o "oB boowe &o !+e be$e&i! o& !+e spo%ses >a$lilioas s+ow$ by !+e &a"! !+a! !+e po"eeds we$! !o !+e spo%ses >a$lilio w+o wee se#i"i$, o payi$, !+e mo$!+ly d%esis beside !+e poi$!. Fo si,$i$, as boowe a$d "oBboowe o$ !+e pomissoy $o!es wi!+ !+e po"eeds o& !+e loa$s ,oi$, !o !+e spo%ses >a$lilio Go$-ales +as e9!e$ded a$ a""ommoda!io$ !o said spo%ses. As a$ a""ommoda!io$ pa!y Go$-ales is solidaily liable wi!+ !+e spo%ses >a$lilio &o !+e loa$s. I$ Ang v. Associated Bank H%o!i$, !+e de&i$i!io$ o& a$ a""ommoda!io$ pa!y %$de Se"!io$ *' o& !+e =e,o!iable I$s!%me$!s Law !+e Co%! "i!ed !+a! a$ a""ommoda!io$ pa!y is a peso$ /w+o +as si,$ed !+e i$s!%me$! as ma2e dawe a""ep!o o i$dose wi!+o%! e"ei#i$, #al%e !+ee&o a$d &o !+e p%pose o& le$di$, +is $ame !o some o!+e peso$.7 T+e Co%! &%!+e e9plai$ed: DA$ a""ommoda!io$ pa!y is o$e w+o mee!s all !+e !+ee eH%isi!es vi5: 346 +e m%s! be a pa!y !o !+e i$s!%me$! si,$i$, as
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As pe!i!io$e a"2$owled,ed i! !o be !+e ela!io$ be!wee$ a$ a""ommoda!io$ pa!y a$d !+e a""ommoda!ed pa!y is o$e o& pi$"ipal a$d s%e!y!+e a""ommoda!io$ pa!y bei$, !+e s%e!y. As s%"+ +e is deemed a$ oi,i$al pomiso a$d deb!o &om !+e be,i$$i$,; +e is "o$sideed i$ law as !+e same pa!y as !+e deb!o i$ ela!io$ !o w+a!e#e is ad%d,ed !o%"+i$, !+e obli,a!io$ o& !+e la!!e si$"e !+ei liabili!ies ae i$!ewo#e$ as !o be i$sepaable. Al!+o%,+ a "o$!a"! o& s%e!ys+ip is i$ esse$"e a""essoy o "olla!eal !o a #alid pi$"ipal obli,a!io$ !+e s%e!y?s liabili!y !o !+e "edi!o is i((ediate pri(ary a$d a)solute; +e is directly a$d equally bo%$d wi!+ !+e pi$"ipal. As a$ eH%i#ale$! o& a e,%la pa!y !o !+e %$de!a2i$, a s%e!y be"omes liable !o !+e deb! a$d d%!y o& !+e pi$"ipal obli,o e#e$ wi!+o%! possessi$, a die"! o peso$al i$!ees! i$ !+e obli,a!io$s $o does +e e"ei#e a$y be$e&i! !+ee&om. T+%s !+e 2$owled,e a"H%ies"e$"e o e#e$ dema$d by O"ampo &o a$ a""ommoda!io$ by Go$-ales i$ ode !o e9!e$d !+e "edi! o loa$ o& >+> 40))))) !o !+e spo%ses >a$lilio does $o! e9o$ea!e Go$-ales &om liabili!y o$ !+e !+ee pomissoy $o!es. ?use)io "on5ales v. Philippine !o((ercial International Bank, et al.; G.R. =o. 40)*5K. Feb%ay *( *)44.
@E>OSIT @eposi!. A!i"le 4'* i$ ela!io$ !o A!i"le 4''0 o& !+e Ci#il Code de&i$es a "o$!a"! o& deposi! a$d a $e"essay deposi! made by peso$s i$ +o!els o i$$s: A!. 4'*. A deposi! is "o$s!i!%!ed &om !+e mome$! a peso$ e"ei#es a !+i$, belo$,i$, !o a$o!+e wi!+ !+e obli,a!io$ o& sa&ely 2eepi$, i! a$d e!%$i$, !+e same. I& !+e sa&e2eepi$, o& !+e !+i$, deli#eed is $o! !+e pi$"ipal p%pose o& !+e "o$!a"! !+ee is $o deposi! b%! some o!+e "o$!a"!. A!. 4''0. T+e deposi! o& e&&e"!s made by !a#eles i$ +o!els o i$$s s+all also be e,aded as $e"essay. T+e 2eepes o& +o!els o i$$s s+all be espo$sible &o !+em as deposi!aies po#ided !+a! $o!i"e was ,i#e$ !o !+em o !o !+ei employees o& !+e e&&e"!s bo%,+! by !+e ,%es!s a$d !+a! o$ !+e pa! o& !+e la!!e !+ey !a2e !+e pe"a%!io$s w+i"+ said +o!elB2eepes o !+ei s%bs!i!%!es ad#ised ela!i#e !o !+e "ae a$d #i,ila$"e o& !+ei e&&e"!s. >lai$ly &om !+e &a"!s &o%$d by !+e lowe "o%!s !+e i$s%ed See deposi!ed +is #e+i"le &o sa&e2eepi$, wi!+ pe!i!io$e !+o%,+ !+e la!!e?s employee %s!imbas!e. I$ !%$ %s!imbas!e iss%ed a "laim s!%b !o See. T+%s !+e "o$!a"! o& deposi! was pe&e"!ed &om See?s deli#ey w+e$ +e +a$ded o#e !o %s!imbas!e !+e 2eys !o +is #e+i"le w+i"+ %s!imbas!e e"ei#ed wi!+ !+e obli,a!io$ o& sa&ely 2eepi$, a$d e!%$i$, i!. Ul!ima!ely pe!i!io$e is liable &o !+e loss o& See?s #e+i"le. ur)an Apart(ents !orp., etc. vs. Pioneer Insurance and Surety !orp.> ".R. #o. $2-*$-. ;anuary $+, +$$.
COM>ROMISE Compomise a,eeme$!. U$de !+e Ci#il Code o& !+e >+ilippi$es "o$!a"!i$, pa!ies may es!ablis+ s%"+ s!ip%la!io$s "la%ses !ems a$d "o$di!io$s as !+ey deem "o$#e$ie$! so lo$, as !+ey ae $o! "o$!ay !o law moals ,ood "%s!oms p%bli" ode o p%bli" poli"y. A "ompomise a,eeme$! is a "o$!a"! w+eeby !+e pa!ies %$de!a2e e"ipo"al obli,a!io$s !o esol#e !+ei di&&ee$"es i$ ode !o a#oid li!i,a!io$ o p%! a$ e$d !o o$e aleady i$s!i!%!ed. I! is a %di"ial "o#e$a$! +a#i$, !+e &o"e a$d e&&e"! o& a %d,me$! s%be"! !o e9e"%!io$ i$ a""oda$"e wi!+ !+e R%les o& Co%! a$d +a#i$, !+e e&&e"! a$d a%!+oi!y o& res udicata %po$ i!s appo#al by !+e "o%! w+ee !+e li!i,a!io$ is pe$di$,. !oca8!ola Bottlers Philippines, Inc. vs. Rodrigo /ercado, et al. ; ".R. #o. $-<%$. 3cto)er ', +$ Compomise a,eeme$!. U$de A!i"le *)*0 o& !+e Ci#il Code a "ompomise a,eeme$! is a "o$!a"! w+eeby !+e pa!ies by ma2i$, e"ipo"al "o$"essio$s a#oid li!i,a!io$ o p%! a$ e$d !o o$e aleady "omme$"ed. Compomise is a &om o& ami"able se!!leme$! !+a! is $o! o$ly allowed b%! also e$"o%a,ed i$ "i#il "ases. Co$!a"!i$, pa!ies may es!ablis+ s%"+ s!ip%la!io$s "la%ses !ems a$d "o$di!io$s as !+ey deem "o$#e$ie$! po#ided !+a! !+ese ae $o! "o$!ay !o law moals ,ood "%s!oms p%bli" ode o p%bli" poli"y. 9eirs of Alfredo 6a)ala, etc. et al. vs. 9on. !ourt of Appeals, et al., ".R. #o. $%-'+, /ay ', +$.
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,%aa$!ees ae +i,+ly e,%la!ed !a$sa"!io$s %$de !+e law. T+ey ae %$de!a2i$,s !+a! ae $o! so "as%ally iss%ed by ba$2s o by !+ei ba$"+ ma$a,es a! !+e dosal side o& a "lie$!?s pomissoy $o!e as i& a$ a&!e!+o%,+!. A ba$2 ,%aa$!ee is a "o$!a"! !+a! bi$ds !+e ba$2 a$d so may be e$!eed i$!o o$ly %$de a%!+oi!y ,a$!ed by i!s boad o& die"!os. S%"+ a%!+oi!y does $o! appea o$ a$y do"%me$!. I$deed >>I +ad $o i,+! !o e9pe"! ba$"+ ma$a,e Gey !o iss%e o$e wi!+o%! s%"+ a%!+oi-a!io$. 4nited !oconut Planters Bank vs. Planters Products, Inc., ;anet Layson and "regory "rey; G.R. =o. 4K')45 %$e 4( *)4*. S%e!y; $o#a!io$. A "o$!a"! o& s%e!ys+ip is a$ a,eeme$! w+eeby a pa!y "alled !+e s%e!y ,%aa$!ees !+e pe&oma$"e by a$o!+e pa!y "alled !+e pi$"ipal o obli,o o& a$ obli,a!io$ o %$de!a2i$, i$ &a#o o& a$o!+e pa!y "alled !+e obli,ee. Al!+o%,+ !+e "o$!a"! o& a s%e!y is se"o$day o$ly !o a #alid pi$"ipal obli,a!io$ !+e s%e!y be"omes liable &o !+e deb! o d%!y o& a$o!+e al!+o%,+ i! possesses $o die"! o peso$al i$!ees! o#e !+e obli,a!io$s $o does i! e"ei#e a$y be$e&i! !+ee&om. T+e s%e!y?s obli,a!io$ is $o! a$ oi,i$al a$d die"! o$e &o !+e pe&oma$"e o& +is ow$ a"! b%! meely a""essoy o "olla!eal !o !+e obli,a!io$ "o$!a"!ed by !+e pi$"ipal. =e#e!+eless al!+o%,+ !+e "o$!a"! o& a s%e!y is i$ esse$"e se"o$day o$ly !o a #alid pi$"ipal obli,a!io$ +is liabili!y !o !+e "edi!o o pomisee o& !+e pi$"ipal is said !o be die"! pimay a$d absol%!e; i$ o!+e wods +e is die"!ly a$d eH%ally bo%$d wi!+ !+e pi$"ipal. A s%e!y is eleased &om i!s obli,a!io$ w+e$ !+ee is a ma!eial al!ea!io$ o& !+e pi$"ipal "o$!a"! i$ "o$$e"!io$ wi!+ w+i"+ !+e bo$d is ,i#e$ s%"+ as a "+a$,e w+i"+ imposes a $ew obli,a!io$ o$ !+e pomisi$, pa!y o w+i"+ !a2es away some obli,a!io$ aleady imposed o o$e w+i"+ "+a$,es !+e le,al e&&e"! o& !+e oi,i$al "o$!a"! a$d $o! meely i!s &om. I$ !+is "ase +owe#e $o $ew "o$!a"! was "o$"l%ded a$d pe&e"!ed as o$ly !+e e#isio$ o& !+e wo2 s"+ed%le oi,i$ally a,eed %po$ was !+e s%be"! !+eeo&. T+ee was $o $ew "o$!a"!Ja,eeme$! w+i"+ "o%ld be "o$sideed !o +a#e s%bs!i!%!ed !+e %ildi$, Co$!a"!. Philippine !harter Insurance !orporation vs. Petroleu( istri)utors Service !orporation> G.R. =o. 40)0'0. Apil 40 *)4*. I$s%a$"e; e&&e"!i#i!y o& bo$ds. La,ma$ a$"+os +is de&e$se o$ !wo 3*6 a,%me$!s: 46 !+e 4'0' o$ds +a#e e9pied a$d *6 !+e 4'') o$d $o#a!es !+e 4'0' o$ds. T+e Co%! o& Appeals +eld !+a! !+e 4'0' bo$ds wee e&&e"!i#e o$ly &o o$e 346 yea as e#ide$"ed by !+e e"eip!s o$ !+e payme$! o& pemi%ms. T+e S%peme Co%! did $o! a,ee. T+e o&&i"ial e"eip!s i$ H%es!io$ se#e as poo& o& payme$! o& !+e pemi%m &o o$e yea o$ ea"+ s%e!y bo$d. I! does $o! +owe#e a%!oma!i"ally mea$ !+a! !+e s%e!y bo$d is e&&e"!i#e &o o$ly o$e 346 yea. I$ &a"! !+e e&&e"!i#i!y o& !+e bo$d is $o! w+olly depe$de$! o$ !+e payme$! o& pemi%m. Se"!io$ 4KK o& !+e I$s%a$"e Code e9pesses: Se". 4KK. T+e s%e!y is e$!i!led !o payme$! o& !+e pemi%m as soo$ as !+e "o$!a"! o& s%e!ys+ip o bo$d is pe&e"!ed a$d deli#eed !o !+e obli,o. =o "o$!a"! o& s%e!ys+ip o bo$di$, s+all be #alid a$d bi$di$, %$less a$d %$!il !+e pemi%m !+ee&o +as bee$ paid e9"ep! w+ee !+e obli,ee +as a""ep!ed !+e bo$d i$ w+i"+ "ase !+e bo$d be"omes #alid a$d e$&o"eable iespe"!i#e o& w+e!+e o $o! !+e pemi%m +as bee$ paid by !+e obli,o !o !+e s%e!y:>o#ided T+a! i& !+e "o$!a"! o& s%e!ys+ip o bo$d is $o! a""ep!ed by o &iled wi!+ !+e obli,ee !+e s%e!y s+all "olle"! o$ly easo$able amo%$! $o! e9"eedi$, &i&!y pe "e$!%m o& !+e pemi%m d%e !+eeo$ as se#i"e &ee pl%s !+e "os! o& s!amps o o!+e !a9es imposed &o !+e iss%a$"e o& !+e "o$!a"! o bo$d: >o#ided +owe#e T+a! i& !+e $o$Ba""ep!a$"e o& !+e bo$d be d%e !o !+e &a%l! o $e,li,e$"e o& !+e s%e!y $o s%"+ se#i"e &ee s!amps o !a9es s+all be "olle"!ed. !ountry Bankers Insurance !orporation v. Antonio Lag(an, ".R. #o. $'&*%2, ;uly $<, +$$. S%e!y. A "o$!a"! o& s%e!ys+ip is a$ a,eeme$! w+eeby a pa!y "alled !+e s%e!y ,%aa$!ees !+e pe&oma$"e by a$o!+e pa!y "alled !+e pi$"ipal o obli,o o& a$ obli,a!io$ o %$de!a2i$, i$ &a#o o& a$o!+e pa!y "alled !+e obli,ee. T+e s%e!y a,eeme$! is a$ a""essoy "o$!a"!; a$d !+e s%e!y be"omes die"!ly pimaily a$d eH%ally bo%$d wi!+ !+e pi$"ipal as !+e oi,i$al pomisso al!+o%,+ !+e &ome possesses $o die"! o peso$al i$!ees! o#e !+e la!!e?s obli,a!io$s a$d does $o! e"ei#e a$y be$e&i! !+ee&om. Star @o MSP08A/!N, Inc. 3. 9o@ard o, et al., ".R. #o. $%&*&*. /arch +<, +$$ @is+o$o o& "+e"2. T+is "ase i$#ol#ed "e!ai$ loa$s &o w+i"+ pe!i!io$e was a$ a""ommoda!io$ pa!y. T+e boowes %$de !+e loa$s +ad de&a%l!ed !i,,ei$, !+e soliday liabili!y o& !+e a""ommoda!io$ pa!y a$d !+e "a$"ella!io$ o& !+e pe!i!io$e?s "edi! li$e wi!+ !+a! ba$2 %$de a "e!ai$ a,eeme$!. Co$seH%e$!ly o$e o& !+e pe!i!io$e?s "+e"2s was dis+o$oed. T+e S%peme Co%! +eld !+a! !+e ba$2 impopely dis+o$oed !+e "+e"2 o& !+e pe!i!io$e si$"e i! +ad &ailed !o &omally $o!i&y !+e pe!i!io$e as a""ommoda!io$ pa!y o& !+e de&a%l! %$de !+e loa$. ?use)io "on5ales v. Philippine !o((ercial International Bank, et al.; G.R. =o. 40)*5K. Feb%ay *( *)44. S%e!y. As po#ided i$ A!i"le *)
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aa$,eme$! !+e obli,ee a""ep!s !+e s%e!y?s soliday %$de!a2i$, !o pay i& !+e obli,o does $o! pay. S%"+ a""ep!a$"e +owe#e does $o! "+a$,e i$ a$y ma!eial way !+e obli,ee?s ela!io$s+ip wi!+ !+e pi$"ipal obli,o. =ei!+e does i! ma2e !+e s%e!y a$ a"!i#e pa!y !o !+e pi$"ipal obli,eeBobli,o ela!io$s+ip. T+%s !+e a""ep!a$"e does $o! ,i#e !+e s%e!y !+e i,+! !o i$!e#e$e i$ !+e pi$"ipal "o$!a"!. T+e s%e!y?s ole aises o$ly %po$ !+e obli,o?s de&a%l! a! w+i"+ !ime i! "a$ be die"!ly +eld liable by !+e obli,ee &o payme$! as a soliday obli,o. I$ !+e "ase a! be$"+ w+e$ L%"2y S!a &ailed !o &i$is+ !+e dilli$, wo2 wi!+i$ !+e a,eed !ime &ame despi!e pe!i!io$e?s dema$d &o "omple!io$ i! was aleady i$ delay. @%e !o !+is de&a%l! L%"2y S!a?s liabili!y a!!a"+ed a$d as a $e"essay "o$seH%e$"e espo$de$!?s liabili!y %$de !+e s%e!y a,eeme$! aose. A""odi$,ly a&!e liabili!y +as a!!a"+ed !o !+e pi$"ipal !+e obli,ee o i$ !+is "ase !+e pe!i!io$e "a$ e9e"ise !+e i,+! !o po"eed a,ai$s! L%"2y S!a espo$de$! o bo!+. Co$!ay !o !+e !o !ial %li$, i$s%a$"e $o! a%!oma!i"ally eleased &omo a$y liabili!y w+e$ pe!i!io$e eso!ed !+e"o%!?s es"issio$ o& espo$de$! !+e pi$"ipal "o$!a"!"ompa$y &o &ail%ewas o& !+e o!+e pa!y !o pe&om i!s %$de!a2i$,. >e"isely !+e liabili!y o& !+e s%e!y aisi$, &om !+e s%e!y "o$!a"!s "omes !o li&e %po$ !+e soliday obli,o?s de&a%l!. I! s+o%ld be emp+asi-ed !+a! pe!i!io$e +ad !o "+oose es"issio$ i$ ode !o pe#e$! &%!+e loss !+a! may aise &om !+e delay o& !+e po,ess o& !+e poe"!. Wi!+o%! a do%b! L%"2y S!a?s %$sa!is&a"!oy po,ess i$ !+e dilli$, wo2 a$d i!s &ail%e !o "omple!e i! i$ d%e !ime amo%$! !o $o$Bpe&oma$"e o& i!s obli,a!io$. Fi$ally A!i"le $+$2 o& !+e =ew Ci#il Code a"2$owled,es !+e i,+! o& eimb%seme$! &om a "oBdeb!o Mthe principal co8de)tor, in case of suretyshipN i$ &a#o o& !+e o$e w+o paid Mthe suretyN. T+%s espo$de$! is e$!i!led !o eimb%seme$! &om L%"2y S!a &o !+e amo%$! i! may be eH%ied !o pay pe!i!io$e aisi$, &om i!s bo$ds. Asset Builders !orporation vs. Stronghold Insurance !o., Inc. ; ".R. #o. $%2$$'. 3cto)er $%, +$. S%e!y. Compe+e$si#e o "o$!i$%i$, s%e!y a,eeme$!s ae i$ &a"! H%i!e "ommo$pla"e i$ pese$! day &i$a$"ial a$d "omme"ial pa"!i"e. A ba$2 o &i$a$"i$, "ompa$y w+i"+ a$!i"ipa!es e$!ei$, i$!o a seies o& "edi! !a$sa"!io$s wi!+ a pa!i"%la "ompa$y $omally eH%ies !+e poe"!ed pi$"ipal deb!o !o e9e"%!e a "o$!i$%i$, s%e!y a,eeme$! alo$, wi!+ i!s s%e!ies. y e9e"%!i$, s%"+ a$ a,eeme$! !+e pi$"ipal pla"es i!sel& i$ a posi!io$ !o e$!e i$!o !+e poe"!ed seies o& !a$sa"!io$s wi!+ i!s "edi!o; wi!+ s%"+ s%e!ys+ip a,eeme$! !+ee wo%ld be $o $eed !o e9e"%!e a sepaa!e s%e!y "o$!a"! o bo$d &o ea"+ &i$a$"i$, o "edi! a""ommoda!io$ e9!e$ded !o !+e pi$"ipal deb!o. A "o$!i$%i$, s%e!ys+ip "o#es "%e$! a$d &%!%e loa$s po#ided !+a! wi!+ espe"! !o &%!%e loa$ !a$sa"!io$s !+ey ae wi!+i$ !+e des"ip!io$ o "o$!empla!io$ o& !+e "o$!a"! o& ,%aa$!y. >e!i!io$e a,%es !+a! !+e appo#al o& !+e se"o$d "edi! &a"ili!y $e"essi!a!es +is "o$se$! "o$sidei$, !+e o$eo%s a$d soliday liabili!y o& a s%e!y. T+is is "o$!ay !o !+e e9pess wai#e o& +is "o$se$! !o s%"+ e$ewal. Aniceto ". Saludo, ;r. vs. Security Bank !orporation> ".R. #o. $%**$, 3cto)er $<, +$.
>LE@GE MORTGAGE A=@ A=TIC8RESIS A$!i"+esis. Fo !+e "o$!a"! o& a$!i"+esis !o be #alid A!i"le *4(< o& !+e Ci#il Code eH%ies !+a! /!+e amo%$! o& !+e pi$"ipal a$d o& !+e i$!ees! s+all be spe"i&ied i$ wi!i$,; o!+ewise !+e "o$!a"! o& a$!i"+esis s+all be #oid.7 I$ !+is "ase !+e 8eis o& Adol&o wee i$disp%!ably %$able !o pod%"e a$y do"%me$! i$ s%ppo! o& !+ei "laim !+a! !+e "o$!a"! be!wee$ Adol&o a$d a$,is was a$ a$!i"+esis +e$"e !+e CA popely +eld !+a! $o s%"+ ela!io$s+ip e9is!ed be!wee$ !+e pa!ies. Aniceto Bangis, su)stituted )y his heirs, na(ely Rodolfo B. Bangis, et al. vs. 9eirs of Serafin and Salud Adolfo, na(ely: Lu5 A. Banniester, et al. ; G.R. =o. 4')0K5 %$e 4( *)4*. Mo!,a,e; de&i"ie$"y "laim; allowable a&!e e9!a%di"ial &oe"los%e o& mo!,a,e. We %le !+a! >= +ad !+e le,al i,+! !o e"o#e !+e de&i"ie$"y amo%$!. I$ Philippine #ational Bank v. !ourt of Appeals we +eld !+a!: /i! is se!!led !+a! i& !+e po"eeds o& !+e sale ae i$s%&&i"ie$! !o "o#e !+e deb! i$ a$ e9!a%di"ial &oe"los%e o& !+e mo!,a,e !+e mo!,a,ee is e$!i!led !o "laim !+e de&i"ie$"y &om !+e deb!o. Fo w+e$ !+e le,isla!%e i$!e$ds !o de$y !+e i,+! o& a "edi!o !o s%e &o a$y de&i"ie$"y es%l!i$, &om &oe"los%e o& se"%i!y ,i#e$ !o ,%aa$!ee a$ obli,a!io$ i! e9pessly po#ides as i$ !+e "ase o& pled,es DCi#il Code A!. *445 a$d i$ "+a!!el mo!,a,es o& a !+i$, sold o$ i$s!allme$! basis DCi#il Code A!. 4<0<3(6. A"! =o. (4(5 w+i"+ ,o#e$s !+e e9!a%di"ial &oe"los%e o& mo!,a,es w+ile sile$! as !o !+e mo!,a,ee?s i,+! !o e"o#e does $o! o$ !+e o!+e +a$d po+ibi!
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Mo!,a,e; pa"!%m "ommissoi%m. T+e &ollowi$, ae !+e eleme$!s o& pactu( co((issoriu(: 346 T+ee s+o%ld be a pope!y mo!,a,ed by way o& se"%i!y &o !+e payme$! o& !+e pi$"ipal obli,a!io$; a$d 3*6 T+ee s+o%ld be a s!ip%la!io$ &o a%!oma!i" appopia!io$ by !+e "edi!o o& !+e !+i$, mo!,a,ed i$ "ase o& $o$Bpayme$! o& !+e pi$"ipal obli,a!io$ wi!+i$ !+e s!ip%la!ed peiod. illa?s p%"+ase o& !+e s%be"! pope!y did $o! #iola!e !+e po+ibi!io$ o$ pactu( co((issoriu(. T+e powe o& a!!o$ey po#isio$ abo#e did $o! po#ide !+a! !+e ow$es+ip o#e !+e s%be"! pope!y wo%ld a%!oma!i"ally pass !o illa %po$ Galas?s &ail%e !o pay !+e loa$ o$ !ime. W+a! i! ,a$!ed was !+e mee appoi$!me$! o& illa as a!!o$eyBi$B&a"! wi!+ a%!+oi!y !o sell o o!+ewise dispose o& !+e s%be"! pope!y a$d !o apply !+e po"eeds !o !+e payme$! o& !+e loa$. T+is po#isio$ is "%s!omay i$ mo!,a,e "o$!a"!s a$d is i$ "o$&omi!y wi!+ A!i"le *)0K o& !+e Ci#il Code. Galas?s de"isio$ !o e#e$!%ally sell !+e s%be"! pope!y !o illa &o a$ addi!io$al >45))))).)) was well wi!+i$ !+e s"ope o& +e i,+!s as !+e ow$e o& !+e s%be"! pope!y. T+e s%be"! pope!y was !a$s&eed !o illa by #i!%e o& a$o!+e a$d sepaa!e "o$!a"! w+i"+ is !+e @eed o& Sale. Ga"ia $e#e alle,ed !+a! !+e !a$s&e o& !+e s%be"! pope!y !o illa was a%!oma!i" %po$ Galas?s &ail%e !o dis"+a,e +e deb! o !+a! !+e sale was sim%la!ed !o "o#e %p s%"+ a%!oma!i" !a$s&e. Pa)lo P. "arcia vs. =olanda 0alde5 0illar; G.R. =o. 4500'4 %$e *K *)4*.
Sale a! p%bli" a%"!io$; i$adeH%a"y o& bid pi"e. We +a#e "o$sis!e$!ly +eld !+a! !+e i$adeH%a"y o& !+e bid pi"e a! a &o"ed sale %$li2e !+a! i$ a$ odi$ay sale is imma!eial a$d does $o! $%lli&y !+e sale; i$ &a"! i$ a &o"ed sale a low pi"e is "o$sideed moe be$e&i"ial !o !+e mo!,a,e deb!o be"a%se i! ma2es edemp!io$ o& !+e pope!y easie. rancisco Ra)at, et al. vs. Philippine #ational Bank; G.R. =o. 450K55 %$e 40 *)4* Mo!,a,e; &oe"los%e. As !o >I?s i,+! !o &oe"lose !+e e"ods s+ow !+a! Lo!!o de&a%l!ed i$ i!s obli,a!io$ w+e$ i! %$%s!i&iably s!opped payi$, i!s amo!i-a!io$s a&!e !+e &is! yea. Co$seH%e$!ly !+ee is $o H%es!io$ !+a! >I 3w+i"+ s%""eeded @S6 +ad a "lea i,+! !o &oe"lose o$ Lo!!o?s "olla!eal. T+e Co%! +eld i$ ?quita)le P!I Bank, Inc. v. 3;8/ark rading, Inc. !+a! &oe"los%e is b%! a $e"essay "o$seH%e$"e o& $o$Bpayme$! o& mo!,a,e i$deb!ed$ess. T+e "edi!oBmo!,a,ee +as !+e i,+! !o &oe"lose !+e mo!,a,e sell !+e pope!y a$d apply !+e po"eeds o& !+e sale !o !+e sa!is&a"!io$ o& !+e %$paid loa$. Lotto Restaurant !orporation, represented )y S4A I/ "3, 3. BPI a(ily Savings Bank, Inc.; ".R. #o. $22+', /arch <, +$$ Mo!,a,e; Redemp!io$ pi"e; s+o%ld $o! i$"l%de CGT. Co$sidei$, !+a! +eei$ pe!i!io$esBmo!,a,os e9e"ised !+ei i,+! o& edemp!io$ be&oe !+e e9pia!io$ o& !+e s!a!%!oy o$eByea peiod pe!i!io$e ba$2 is $o! liable !o pay !+e "api!al ,ai$s !a9 d%e o$ !+e e9!a%di"ial &oe"los%e sale. T+ee was $o a"!%al !a$s&e o& !i!le &om !+e ow$esBmo!,a,os !o !+e &oe"losi$, ba$2. 8e$"e !+e i$"l%sio$ o& !+e said "+a,e i$ !+e !o!al edemp!io$ pi"e was %$waa$!ed a$d !+e "oespo$di$, amo%$! paid by !+e pe!i!io$esBmo!,a,os s+o%ld be e!%$ed !o !+em. Supre(e ransliner, Inc., /oises !. Alvare5 and Paulita S. Alvare5 v. BPI a(ily Savings Bank, Inc.7BPI a(ily Savings Bank, Inc. v. Supre(e ransliner Inc., /oises !. Alvare5 and Paulita S. Alvares> G.R. =o. 454KJG.R. =o. 450(K. Feb%ay *5 *)44; Mo!,a,e; pa"!%m "ommissoi%m. Pactu( co((issoriu( is a s!ip%la!io$ empowei$, !+e "edi!o !o appopia!e !+e !+i$, ,i#e$ as ,%aa$!y &o !+e &%l&illme$! o& !+e obli,a!io$ i$ !+e e#e$! !+e obli,o &ails !o li#e %p !o +is %$de!a2i$,s wi!+o%! &%!+e &omali!y s%"+ as &oe"los%e po"eedi$,s a$d a p%bli" sale. T+e eleme$!s o& pactu( co((issoriu( w+i"+ e$able !+e mo!,a,ee !o a"H%ie ow$es+ip o& !+e mo!,a,ed pope!y @ithout the need of any foreclosure proceedings ae: 346 !+ee s+o%ld be a pope!y mo!,a,ed by way o& se"%i!y &o !+e payme$! o& !+e pi$"ipal obli,a!io$ a$d 3*6 !+ee s+o%ld be a s!ip%la!io$ &o a%!oma!i" appopia!io$ by !+e "edi!o o& !+e !+i$, mo!,a,ed i$ "ase o& $o$Bpayme$! o& !+e pi$"ipal obli,a!io$ wi!+i$ !+e s!ip%la!ed peiod. T+e se"o$d eleme$! is missi$, !o "+aa"!ei-e !+e @eed o& Sale as a &om o& pactu( co((issoriu(. e!ea$s a$2 did $o! %po$ !+e pe!i!io$es? de&a%l! a%!oma!i"ally a"H%ie o appopia!e !+e mo!,a,ed pope!y &o i!sel&. O$ !+e "o$!ay !+e e!ea$s a$2 eso!ed !o e9!a%di"ial &oe"los%e a$d was iss%ed a Ce!i&i"a!e o& Sale by !+e s+ei&& as poo& o& i!s purchase o& !+e s%be"! pope!y d%i$, !+e &oe"los%e sale. T+a! e!ea$s a$2 we$! !+o%,+ all !+e s!a,es o& e9!a%di"ial &oe"los%e i$di"a!es !+a! !+ee was $o pactu( co((issoriu(. Spouses ernando and Angelina ?dralin v. Philippine 0eterans Bank, ".R. #o. $'%&+<, /arch -, +$$.
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45 4'''. T+is is a a!+e spe"io%s i$!epe!a!io$ o& !+e a&oeH%o!ed p+ase. I! is moe lo,i"al a$d easo$able !o %$des!a$d !+e same p+ase as !o mea$ !+a! !+e $o!i"es wee pos!ed be,i$$i$, =o#embe 45 4''' %$!il !+e iss%a$"e o& !+e "e!i&i"a!e o$ @e"embe ' 4'''. T+ee is also $o basis !o eH%ie !+e $o!ay p%bli"?s "e!i&i"a!e !o e9a"!ly s!a!e !+a! !+e $o!i"es o& sale wee pos!ed a! /p%bli" pla"es.7 =o!ay >%bli" Ma,pa$!ay?s %se o& !+e wods /"o$spi"%o%s pla"es7 i$ +is "e!i&i"a!e aleady sa!is&a"!oily "omplies wi!+ !+e le,al eH%ieme$! &o pos!i$,. T+e ade"!i#e /p%bli"7 may e&e !o !+a! w+i"+ is /e9posed !o ,e$eal #iew7 a$d /"o$spi"%o%s7 is a sy$o$ym !+eeo&. Moeo#e i! beas !o s!ess !+a! !+e Ce!i&i"a!e o& >os!i$, is a"!%ally e#ide$"e pese$!ed by !+e pe!i!io$e !o es!ablis+ !+a! "opies o& !+e =o!i"e o& Sale wee i$deed pos!ed as eH%ied by A"! =o. (4(5 as ame$ded. I$ addi!io$ despi!e a$y de&e"! i$ !+e pos!i$, o& !+e =o!i"e o& Sale !+e Co%! ei!ea!es i!s %li$, i$ pe#io%s %isp%de$"e !+a! !+e p%bli"a!io$ o& Savings !+e same $o!i"e i$ a $ewspape o& ,e$eal "i"%la!io$ is aleady s%&&i"ie$! "omplia$"e o& !+e law. !entury Bank vs. Spouses anilo . Sa(onte and Rosalinda /. Sa(onte> ".R. #o. $2'+$+, 3cto)er +, wi!+ +$. !+e eH%ieme$! Mo!,a,e; &oe"los%e; de&a%l! is peBeH%isi!e. Foe"los%e is #alid o$ly w+e$ !+e deb!o is i$ de&a%l! i$ !+e payme$! o& +is obli,a!io$. I! is a $e"essay "o$seH%e$"e o& $o$Bpayme$! o& mo!,a,e i$deb!ed$ess. As a %le !+e mo!,a,e "a$ be &oe"losed o$ly w+e$ !+e deb! emai$s %$paid a! !+e !ime i! is d%e. Ri5al !o((ercial Banking !orporation vs. Pedro P. Buenaventura ; ".R. #o. $2'*2-. 3cto)er ', +$. Mo!,a,e; edemp!io$ pi"e i& le$de is @>. Se"!io$ 4 o& E9e"%!i#e Ode 3EO6 =o. 04 s!a!es !+a! !+e edemp!io$ pi"e &o pope!ies mo!,a,ed !o a$d &oe"losed by @> is eH%i#ale$! !o !+e emai$i$, bala$"e o& !+e loa$. Se"!io$ 4 s!a!es !+a! /A$y mo!,a,o o& !+e a$2 w+ose pope!y +as bee$ e9!a%di"ially sold a! p%bli" a%"!io$ s+all 9 9 9 +a#e !+e i,+! !o edeem !+e eal pope!y by payi$, !o !+e a$2 all o& !+e la!!e?s "laims a,ai$s! +im as de!emi$ed by !+e a$2.7 T+e lowe "o%!s %led !+a! !+e edemp!io$ pi"e &o !+e pope!y is eH%i#ale$! o$ly !o w+a! @> paid d%i$, !+e p%bli" a%"!io$ be"a%se @> "+ose A"! =o. (4(5 as !+e ,o#e$i$, law &o !+e e9!a%di"ial &oe"los%e. T+e S%peme Co%! disa,eed wi!+ !+is sayi$, !+a! Rep%bli" A"! 3RA6 =o. 05 a$d A"! =o. 45)0 do $o! po#ide a po"ed%e &o e9!a%di"ial &oe"los%e o& eal es!a!e mo!,a,e. W+e$ @> s!a!ed i$ i!s le!!e !o !+e e9Bo&&i"io s+ei&& !+a! !+e pope!y be sold /a! p%bli" a%"!io$ i$ a""oda$"e wi!+ !+e po#isio$s o& A"! (4(57 i! did so meely !o &i$d a po"eedi$, &o !+e sale. Also EO =o. 04 bei$, a spe"ial a$d s%bseH%e$! law ame$ded A"! =o. (4(5 i$so&a as !+e as edemp!io$ pi"e is "o$"e$ed. evelop(ent Bank of the Philippines vs. ?nviron(ental Aquatics, Inc., et al.>".R. #o. $2*<+-, 3cto)er +, +$. Mo!,a,ed pope!y; w+a! +appe$s w+e$ mo!,a,o sells pope!y wi!+o%! mo!,a,ee?s "o$se$!. T+e H%es!io$ is: was Reyes? disposal o& !+e pope!y i$ &a#o o& !+e e,as #alid ,i#e$ a po#isio$ i$ !+e mo!,a,e a,eeme$! 3be!wee$ Reyes a$d SSS6 !+a! s+e "o%ld $o! do so wi!+o%! !+e wi!!e$ "o$se$! o& !+e SSS T+e CA %led !+a! %$de A!i"le 4*(K o& !+e Ci#il Code !+e e,as w+o paid amo!i-a!io$s !o !+e SSS e9"ep! !+e las! o$ be+al& o& Reyes wi!+o%! !+e la!!e?s 2$owled,e o a,ai$s! +e "o$se$! "a$$o! "ompel !+e SSS !o s%bo,a!e !+em i$ +e i,+!s aisi$, &om !+e mo!,a,e. F%!+e said !+e CA !+e e,as? "laim o& s%bo,a!io$ was i$#alid be"a%se i! was do$e wi!+o%! !+e 2$owled,e a$d "o$se$! o& !+e SSS as eH%ied %$de !+e mo!,a,e a,eeme$!. %! A!i"le 4*(K "a$$o! apply i$ !+is "ase si$"e Reyes "o$se$!ed !o !+e !a$s&e o& ow$es+ip o& !+e mo!,a,ed pope!y !o !+e e,as. Reyes also a,eed &o !+e e,as !o ass%me !+e mo!,a,e a$d pay !+e bala$"e o& +e obli,a!io$ !o SSS. O& "o%se paa,ap+ < o& !+e mo!,a,e "o$!a"! "o#ei$, !+e pope!y eH%ied Reyes !o se"%e SSS? "o$se$! be&oe selli$, !+e pope!y. %! al!+o%,+ s%"+ a s!ip%la!io$ is #alid a$d bi$di$, i$ !+e se$se !+a! !+e SSS "a$$o! be "ompelled w+ile !+e loa$ was %$paid !o e"o,$i-e !+e sale i! "a$$o! be i$!epe!ed as absol%!ely &obiddi$, +e as ow$e o& !+e mo!,a,ed pope!y &om selli$, !+e same w+ile +e loa$ emai$ed %$paid. S%"+ s!ip%la!io$ "o$!a#e$es p%bli" poli"y bei$, a$ %$d%e impedime$! o i$!e&ee$"e o$ !+e !a$smissio$ o& pope!y. esides w+e$ a mo!,a,o sells !+e mo!,a,ed pope!y !o a !+id peso$ !+e "edi!o may dema$d &om s%"+ !+id peso$ !+e payme$! o& !+e pi$"ipal obli,a!io$. T+e easo$ &o !+is is !+a! !+e mo!,a,e "edi! is a eal i,+! w+i"+ &ollows !+e pope!y w+ee#e i! ,oes e#e$ i& i!s ow$es+ip "+a$,es. A!i"le *4*' o& !+e Ci#il Code ,i#es !+e mo!,a,ee +ee !+e SSS !+e op!io$ o& "olle"!i$, &om !+e !+id peso$ i$ possessio$ o& !+e mo!,a,ed pope!y i$ !+e "o$"ep! o& ow$e. Moe !+e mo!,a,oB ow$e?s sale o& !+e pope!y does $o! a&&e"! !+e i,+! o& !+e e,is!eed mo!,a,ee !o &oe"lose o$ !+e same e#e$ i& i!s ow$es+ip +ad bee$ !a$s&eed !o a$o!+e peso$. T+e la!!e is bo%$d by !+e e,is!eed mo!,a,e o$ !+e !i!le +e a"H%ied. A&!e !+e mo!,a,e deb! !o SSS +ad bee$ paid +owe#e !+e la!!e +ad $o &%!+e %s!i&i"a!io$ &o wi!++oldi$, !+e elease o& !+e "olla!eal a$d !+e e is!eed !i!le !o !+e a! !o w+om Re es +ad !a$s&eed +e i +! as ow$e. U$de !+e "i"%ms!a$"e
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%$disp%!ably belo$, !o !+e boowe. I& pio !o !+e %d,me$! !+e boowe +ad sold !+e pope!y a "edi!o "a$ $o lo$,e ,o a&!e !+a! pope!y. Sps. Antonio and Leticia 0ega vs. Social Security Syste(, et al., ".R. #o. $%$'2+, Septe()er +, +$ Mo!,a,e; bla$2e! o da,$e! "la%se. e&oe we esol#e !+e iss%es die"!ly posed we &is! dwell o$ !+e de!emi$a!io$ o& !+e $a!%e o& !+e "ossB"olla!eal s!ip%la!io$ i$ !+e mo!,a,e "o$!a"!. As a ,e$eal %le a mo!,a,e liabili!y is %s%ally limi!ed !o !+e amo%$! me$!io$ed i$ !+e "o$!a"!. 8owe#e !+e amo%$!s $amed as "o$sidea!io$ i$ a "o$!a"! o& mo!,a,e do $o! limi! !+e amo%$! &o w+i"+ !+e mo!,a,e may s!a$d as se"%i!y i& &om !+e &o% "o$es o& !+e i$s!%me$! !+e intent to secure future and other inde)tedness "a$ be ,a!+eed. T+is s!ip%la!io$ is valid and )inding be!wee$ !+e pa!ies a$d is 2$ow$ as !+e / )lanket (ortgage clause7 3also 2$ow$ as !+e /da,$e! "la%se6.7 I$ !+e pese$! "ase !+e mo!,a,e "o$!a"! i$disp%!ably po#ides !+a! !+e s%be"! pope!ies se#e as se"%i!y $o! o$ly &o !+e payme$! o& !+e s%be"! loa$ b%! also &o / such other loans or advances already o)tained, or still to )e o)tained .7 T+e "ossB"olla!eal s!ip%la!io$ i$ !+e mo!,a,e "o$!a"! be!wee$ !+e pa!ies is !+%s simply a #aie!y o& a da,$e! "la%se. A&!e a,eei$, !o s%"+ s!ip%la!io$ !+e pe!i!io$es "a$$o! i$sis! !+a! !+e s%be"! pope!ies be eleased &om mo!,a,e si$"e !+e se"%i!y "o#es $o! o$ly !+e s%be"! loa$ b%! !+e !wo o!+e loa$s as well. 0ioleta udtud Banate, et al. vs. Philippine !ountryside Rural Bank MLiloan, !e)uN, Inc. and eofilo Soon, ;r., ".R. #o. $'<%+&, ;uly $<, +$. Mo!,a,e; la$2e! Mo!,a,e Cla%se. A bla$2e! mo!,a,e "la%se w+i"+ ma2es a#ailable &%!%e loa$s wi!+o%! $eed o& e9e"%!i$, a$o!+e se! o& se"%i!y do"%me$!s +as lo$, bee$ e"o,$i-ed i$ o% %isp%de$"e. I! is mea$! !o sa#e !ime loa$ "losi$, "+a,es addi!io$al le,al se#i"es e"odi$, &ees a$d o!+e "os!s. A bla$2e! mo!,a,e "la%se is desi,$ed !o lowe !+e "os! o& loa$s !o boowes a! !+e same !ime ma2i$, !+e b%si$ess o& le$di$, moe po&i!able !o ba$2s. Se!!led is !+e %le !+a! mo!,a,es se"%i$, &%!%e loa$s ae #alid a$d le,al "o$!a"!s. Sps. Benedict /aricel y ecklo vs. Rural Bank of Pa(plona, Inc., represented )y its President7/anager, ;uan Las ".R. #o. $2$+$, ;une $%, +$. Mo!,a,e; wi! o& possessio$. T+e i,+! o& !+e p%"+ase !o !+e possessio$ o& !+e &oe"losed pope!y be"omes absol%!e %po$ !+e e9pia!io$ o& !+e edemp!io$ peiod. T+e basis o& !+is i,+! !o possessio$ is !+e p%"+ase?s ow$es+ip o& !+e pope!y. A&!e !+e "o$solida!io$ o& !i!le i$ !+e b%ye?s $ame &o &ail%e o& !+e mo!,a,o !o edeem !+e wi! o& possessio$ be"omes a ma!!e o& i,+! a$d i!s iss%a$"e !o a p%"+ase i$ a$ e9!a%di"ial &oe"los%e is meely a mi$is!eial &%$"!io$. I$ !+is "ase pe!i!io$es &ailed !o edeem !+e s%be"! pope!y wi!+i$ o$e yea &om !+e da!e o& e,is!a!io$ o& !+e "e!i&i"a!e o& sale. 8e$"e espo$de$! "o$solida!ed ow$es+ip o#e !+e s%be"! pope!y a$d TCT =o. 4*''' was iss%ed i$ !+e $ame o& espo$de$!. T+eea&!e espo$de$! &iled a$ ?E8Parte >e!i!io$ &o Iss%a$"e o& a Wi! o& >ossessio$ o#e !+e s%be"! pope!y a$d i! was mi$is!eial %po$ !+e RTC o& >aaQaH%e Ci!y a$"+ *5K !o iss%e !+e wi! o& possessio$ i$ &a#o o& espo$de$!. 8e$"e i! is "lea !+a! !+e RTC o& >aaQaH%e Ci!y a$"+ *5K did $o! ,a#ely ab%se i!s dis"e!io$ i$ iss%i$, !+e wi! o& possessio$ "o$sidei$, !+a! i! was !+e mi$is!eial d%!y o& !+e RTC !o iss%e !+e wi! o& possessio$ i$ &a#o o& espo$de$! w+o +ad "o$solida!ed ow$es+ip o#e !+e s%be"! pope!y a&!e !+e edemp!io$ peiod e9pied. Spouses ?d(undo and Lourdes Sarrosa vs. illy 3. i5on, ".R. #o. $%<+2, ;uly +', +$. Mo!,a,es; edemp!io$; bo$d eH%ieme$! %$de A"!. =o. (4(5; wi! o& possessio$. T+e mo!,a,o o +is s%""essoBi$Bi$!ees! m%s! edeem !+e &oe"losed pope!y @ithin one year fro( the registration of the sale @ith the Register of eeds i$ ode !o a#oid !+e !i!le &om "o$solida!i$, i$ !+e p%"+ase. y &aili$, !o edeem !+%s wise !+e mo!,a,o loses all i$!ees! o#e !+e &oe"losed pope!y. T+e p%"+ase w+o +as a i,+! !o possessio$ !+a! e9!e$ds )eyond !+e e9pia!io$ o& !+e edemp!io$ peiod be"omes !+e a)solute o@ner o& !+e pope!y w+e$ $o edemp!io$ is made !+a! i! is $o lo$,e $e"essay &o !+e p%"+ase !o &ile !+e bo$d eH%ied %$de Se"!io$ K o& A"! =o. (4(5 as ame$ded "o$sidei$, !+a! !+e possessio$ o& !+e la$d be"omes +is absol%!e i,+! as !+e la$d?s confir(ed ow$e. T+e "o$solida!io$ o& ow$es+ip i$ !+e p%"+ase?s $ame a$d !+e iss%a$"e !o +im o& a $ew TCT !+e$ e$!i!les +im !o dema$d possessio$ o& !+e pope!y at any ti(e a$d !+e iss%a$"e o& a wi! o& possessio$ !o +im be"omes a ma!!e o& i,+! %po$ !+e "o$solida!io$ o& !i!le i$ +is $ame. ?ligio P. /allari vs. "overn(ent Service Insurance Syste( and the Provincial Sheriff of Pa(panga, ".R. #o. $&2'&-, ;anuary +&, +$. Mo!,a,e; Impa"! o& Foe"los%e; E9!i$"!io$ o& Mo!,a,e. A&!e !+e &oe"los%e o& !+e mo!,a,ed pope!y !+e mo!,a,e is e9!i$,%is+ed a$d !+e p%"+ase a! a%"!io$ sale a"H%ies !+e pope!y &ee &om s%"+ mo!,a,e. A$y de&i"ie$"y amo%$! a&!e &oe"los%e "a$$o! "o$s!i!%!e a "o$!i$%i$, lie$ o$ !+e &oe"losed pope!y b%! m%s! be "olle"!ed by !+e mo!,a,eeB"edi!o i$ a$ odi$ay a"!io$ &o "olle"!io$. I$ !+is "ase !+e se"o$d loa$ &om !+e same mo!,a,e deed is i$ !+e $a!%e o& a de&i"ie$"y
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i$deb!ed$ess i$ "ase o& de&a%l! i$ payme$!. Foe"los%e is b%! a $e"essay "o$seH%e$"e o& $o$Bpayme$! o& !+e mo!,a,e i$deb!ed$ess. I$ a eal es!a!e mo!,a,e w+e$ !+e pi$"ipal obli,a!io$ is $o! paid w+e$ d%e !+e mo!,a,ee +as !+e i,+! !o &oe"lose !+e mo!,a,e a$d !o +a#e !+e pope!y sei-ed a$d sold wi!+ !+e #iew o& applyi$, !+e po"eeds !o !+e payme$! o& !+e obli,a!io$. O$ !+e &a"e o& espo$de$!s? "lea admissio$ !+a! !+ey wee %$able !o se!!le !+ei obli,a!io$s w+i"+ wee se"%ed by !+e mo!,a,es E>CI +as a "lea i,+! !o &oe"lose !+e mo!,a,es. ?quita)le P!I Bank, Inc. vs. /aria Letecia ernande5, et al., ".R. #o. $'<$$2, ece()er $%, +-. Mo!,a,e; Redemp!io$; >o"ess a$d Cal"%la!io$ o& Redemp!io$ >i"e. I$ ode !o e&&e"! edemp!io$ !+e %d,me$! deb!o o +is s%""esso Bi$Bi$!ees! $eed o$ly pay !+e p%"+ase a! !+e p%bli" a%"!io$ sale !+e edemp!io$ amo%$! "omposed o& 346 !+e pi"e w+i"+ !+e p%"+ase a! !+e p%bli" a%"!io$ sale paid &o !+e pope!y a$d 3*6 !+e amo%$! o& a$y assessme$! o !a9es w+i"+ !+e p%"+ase may +a#e paid o$ !+e pope!y a&!e !+e p%"+ase pl%s !+e appli"able i$!ees!. Respo$de$! ba$2?s dema$d !+a! !+e se"o$d loa$ be added !o !+e a"!%al amo%$! paid &o !+e pope!y a! !+e p%bli" a%"!io$ sale &i$ds $o basis i$ law o %isp%de$"e. Re,adi$, !+e "omp%!a!io$ o& !+e edemp!io$ amo%$! Se"!io$ K0 o& Rep%bli" A"! =o. ((K o!+ewise 2$ow$ as !+e Ge$eal a$2i$, A"! ,o#e$s i$ "ases w+ee !+e mo!,a,ee is a ba$2. Sps. Benedict /aricel y ecklo vs. Rural Bank of Pa(plona, Inc., represented )y its President7/anager, ;uan Las, ".R. #o. $2$+$, ;une $%, +$. Mo!,a,e; Re,is!a!io$. I! is !+e a"! o& e,is!a!io$ w+i"+ "ea!es a "o$s!%"!i#e $o!i"e !o !+e w+ole wold a$d bi$ds !+id peso$s. y de&i$i!io$ e,is!a!io$ is !+e mi$is!eial a"! by w+i"+ a deed "o$!a"! o i$s!%me$! is i$s"ibed i$ !+e e"ods o& !+e o&&i"e o& !+e Re,is!e o& @eeds a$d a$$o!a!ed o$ !+e ba"2 o& !+e TCT "o#ei$, !+e la$d s%be"! o& !+e deed "o$!a"! o i$s!%me$!. A peso$ deali$, wi!+ e,is!eed la$d is $o! eH%ied !o ,o beyo$d !+e TCT !o de!emi$e !+e liabili!ies a!!a"+i$, !o !+e pope!y. 8e is o$ly "+a,ed wi!+ $o!i"e o& s%"+ b%de$s o$ !+e pope!y as ae d%ly a$$o!a!ed o$ !+e TCT. To eH%ie +im !o do moe is !o de&ea! o$e o& !+e pimay obe"!s o& !+e Toe$s sys!em. As !o w+e!+e !+e se"o$d loa$ s+o%ld +a#e bee$ a$$o!a!ed o$ !+e TCT o& !+e mo!,a,ed pope!y i$ ode !o bi$d !+id pa!ies !+e "ase o& ad8= v. Philippine #ational Bank is i$ poi$!. T+e "ase i$#ol#ed a mo!,a,e "o$!a"! "o$!ai$i$, a po#isio$ !+a! &%!%e loa$s wo%ld also be se"%ed by !+e mo!,a,e. T+is Co%! %led !+a! si$"e !+e mo!,a,e "o$!a"! "o$!ai$i$, !+e bla$2e! mo!,a,e "la%se was aleady a$$o!a!ed o$ !+e TCT o& !+e mo!,a,ed pope!y s%bseH%e$! loa$s $eed $o! be sepaa!ely a$$o!a!ed o$ !+e said TCT i$ ode !o bi$d !+id pa!ies. Re"ods o& !+e pese$! "ase s+ow !+a! !+e mo!,a,e "o$!a"! "o$!ai$i$, !+e po#isio$ !+a! &%!%e loa$s wo%ld also be se"%ed by !+e mo!,a,e is d%ly a$$o!a!ed o$ !+e TCT o& !+e mo!,a,ed pope!y. T+is "o$s!i!%!es s%&&i"ie$! $o!i"e !o !+e wold !+a! !+e mo!,a,e se"%es $o! o$ly !+e &is! loa$ b%! also &%!%e loa$s !+e mo!,a,o may ob!ai$ &om espo$de$! ba$2. Applyi$, !+e do"!i$e laid dow$ i$ ad8= v. Philippine #ational Bank, !+e se"o$d loa$ $eed $o! be sepaa!ely a$$o!a!ed o$ !+e said TCT i$ ode !o bi$d !+id pa!ies s%"+ as pe!i!io$es. Sps. Benedict /aricel y ecklo vs. Rural Bank of Pa(plona, Inc., represented )y its President7/anager, ;uan Las, ".R. #o. $2$+$, ;une $%, +$. See e$!y %$de Mo!,a,e; la$2e! Mo!,a,e Cla%se. See also "ases se!!i$, o%! e9"ep!io$ !o %le o$ elia$"e o$ !i!le %$de e$!ies &o >ope!y; %ye i$ Good Fai!+ a$d Sale; I$$o"e$! >%"+ase &o al%e. Mo!,a,e; edemp!io$ peiod; appli"able i$!ees!. T+e o$eByea edemp!io$ peiod applied by !+e CA is !+e %le !+a! ,e$eally applies !o &oe"los%e o& mo!,a,e by a ba$2. T+e peiod o& edemp!io$ is $o! !olled by !+e &ili$, o& a "omplai$! o pe!i!io$ &o a$$%lme$! o& !+e mo!,a,e a$d !+e &oe"los%e sale "o$d%"!ed p%s%a$! !o !+e said mo!,a,e. 8owe#e "o$sidei$, !+e e9"ep!io$al "i"%ms!a$"es s%o%$di$, !+is "ase we will $o! apply !+e %le i$ !+is i$s!a$"e pro hac vice. I$ Lipat !+is Co%! %p+eld !+e RTC de"isio$ ,i#i$, pe!i!io$es &i#e mo$!+s a$d 4K days &om !+e &i$ali!y o& !+e !ial "o%!?s de"isio$ !o edeem !+ei &oe"losed pope!y. Lipat aleady &i$al a$d e9e"%!oy +as !+ee&oe be"ome !+e law o& !+e "ase be!wee$ !+e pa!ies i$"l%di$, !+ei +eis w+o ae pe!i!io$es a$d espo$de$!s i$ !+is "ase. Co$seH%e$!ly pe!i!io$es +ad &i#e mo$!+s a$d 4K days &om !+e &i$ali!y o& Lipat !o e9e"ise !+ei i,+! o& edemp!io$ e#e$ !+o%,+ !+is peiod was beyo$d o$e yea &om !+e da!e o& e,is!a!io$ o& !+e sale. T+%s !+e CA eed 3a$d e#e$ "ommi!!ed a ,a#e ab%se o& dis"e!io$6 w+e$ i! i$sis!ed o$ a "o$!ay %li$,. T+e CA +ad $o powe !o e#ese !+is Co%!?s &i$al a$d e9e"%!oy %d,me$!. T+e CA o#es!epped i!s a%!+oi!y w+e$ i! +eld !+a! !+e i,+! o& edemp!io$ +ad aleady e9pied o$e yea a&!e !+e da!e o& !+e e,is!a!io$ o& !+e "e!i&i"a!e o& sale. Li2e all o!+e "o%!s i$ o% %di"ial sys!em !+e CA m%s! !a2e i!s beai$,s &om !+e %li$,s a$d de"isio$s o& !+is Co%!. =e#e!+eless we $o!e !+a! !+e amo%$! !e$deed by pe!i!io$es !o edeem !+ei &oe"losed pope!y was de!emi$ed by !+e s+ei&& a! !+e a!e o& o$e pe"e$! pe mo$!+ &o o$ly o$e yea. Se"!io$ K0 o& !+e Ge$eal a$2i$, A"! eH%ies payme$! o& !+e amo%$! &i9ed by !+e
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edemp!io$ pi"e wi!+ !+e RTC. 9eirs of ?stelita Burgos8Lipat na(ely: Alan B. Lipat and Alfredo B. Lipat, ;r. vs. 9eirs of ?ugenio . rinidad na(ely: Asuncion R. rinidad, et al., ".R. #o. $%&'**, /arch +, +$. Mo!,a,e; e9!aB%di"ial &oe"los%e; A"! =o. (4(5; old !woBbidde eH%ieme$!. >e!i!io$es so%,+! !+e $%lli&i"a!io$ o& a$ e9!a%di"ial &oe"los%e sale &o alle,edly +a#i$, bee$ "o$d%"!ed i$ "o$!a#e$!io$ o& !+e po"ed%al eH%ieme$!s pes"ibed i$ A.M. =o. ''B4)B)5B) 3Re: >o"ed%e i$ E9!a%di"ial Foe"los%e o& Real Es!a!e Mo!,a,es6 a$d i$ #iola!io$ o& pe!i!io$es? i,+! !o d%e po"ess. >e!i!io$es a,%e !+a! A.M. =o. ''B4)B)5B) w+i"+ !oo2 e&&e"! o$ a$%ay 45 *))) eH%ies !+a! !+ee m%s! be a! leas! !wo pa!i"ipa!i$, biddes i$ a$ a%"!io$ sale. 8owe#e !+e Co%! $o!ed !+a! !+e eH%ieme$! &o a! leas! !wo pa!i"ipa!i$, biddes po#ided i$ !+e oi,i$al #esio$ o& paa,ap+ 5 o& A.M. =o. ''B4)B)5B) is $o! &o%$d i$ A"! =o. (4(5. 8e$"e p%s%a$! !o !+e Resol%!io$ o& !+e S%peme Co%! e$ ba$" da!ed a$%ay () *))4 i! is $o lo$,e eH%ied !o +a#e a! leas! !wo biddes i$ a$ e9!a%di"ial &oe"los%e o& mo!,a,e. I! s+o%ld also be $o!ed !+a! p%s%a$! !o A.M. =o. ''B4)B)5B) as ame$ded by *))* !+e Resol%!io$s o& a$%ay () o$ *))4 a$d** A%,%s! !+e53a6 Co%! iss%ed Ci"%la KB*))* da!ed a$%ay ** w+i"+ be"ame e&&e"!i#e Apil *))*.K *))4 Se"!io$ o& Admi$is!a!o !+e said "i"%la s!a!es /DT+e=o. biddi$, s+all be made !+o%,+ sealed bids w+i"+ m%s! be s%bmi!!ed !o !+e S+ei&& w+o s+all "o$d%"! !+e sale be!wee$ !+e +o%s o& ' a.m. a$d < p.m. o& !+e da!e o& !+e a%"!io$ 3A"! (4(5 Se". <6. T+e pope!y mo!,a,ed s+all be awaded !o !+e pa!y s%bmi!!i$, !+e +i,+es! bid a$d i$ "ase o& a !ie a$ ope$ biddi$, s+all be "o$d%"!ed be!wee$ !+e +i,+es! biddes. >ayme$! o& !+e wi$$i$, bid s+all be made ei!+e i$ "as+ o i$ ma$a,es "+e"2 i$ >+ilippi$e "%e$"y wi!+i$ &i#e 356 days &om $o!i"e.7 T+e %se o& !+e wod /bids7 3i$ pl%al &om6 does $o! ma2e i! a ma$da!oy eH%ieme$! !o +a#e moe !+a$ o$e bidde &o a$ a%"!io$ sale !o be #alid. A.M. =o. ''B4)B)5B) as ame$ded $o lo$,e pes"ibes !+e eH%ieme$! o& a! leas! !wo biddes &o a #alid a%"!io$ sale. We &%!+e +eld !+a! /e9"ep! &o eos o omissio$s i$ !+e $o!i"e o& sale w+i"+ ae "al"%la!ed !o de!e o mislead biddes !o depe"ia!e !+e #al%e o& !+e pope!y o !o pe#e$! i! &om bi$,i$, a &ai pi"e simple mis!a2es o omissio$s ae $o! "o$sideed &a!al !o !+e #alidi!y o& !+e $o!i"e a$d !+e sale made p%s%a$! !+ee!o7. Spouses #or(an . !erte5a, ;r. et al. vs. Philippines Savings Bank, ".R. #o. $-2%, /arch &, +$. Mo!,a,e; mo!,a,ee i$ ,ood &ai!+; s!a$dad &o ba$2s. >e!i!io$e >= poi$!s o%! !+a! si$"e i! did a "edi! i$#es!i,a!io$ i$spe"!ed !+e pope!y a$d #ei&ied !+e "lea$ s!a!%s o& !+e !i!le be&oe ,i#i$, o%! !+e loa$ !o !+e So$,"%a$s i! s+o%ld be e,aded as a mo!,a,ee i$ ,ood &ai!+. >= "laims !+a! !+e pe"a%!io$s i! !oo2 "o$s!i!%!e s%&&i"ie$! "omplia$"e wi!+ !+e d%e dili,e$"e eH%ied o& ba$2s w+e$ deali$, wi!+ e,is!eed la$ds. As a %le !+e Co%! wo%ld $o! e9pe"! a mo!,a,ee !o "o$d%"! a$ e9+a%s!i#e i$#es!i,a!io$ o& !+e +is!oy o& !+e mo!,a,o?s !i!le be&oe +e e9!e$ds a loa$. %! pe!i!io$e >= is $o! a$ odi$ay mo!,a,ee; i! is a ba$2. a$2s ae e9pe"!ed !o be moe "a%!io%s !+a$ odi$ay i$di#id%als i$ deali$, wi!+ la$ds e#e$ e,is!eed o$es si$"e !+e b%si$ess o& ba$2s is imb%ed wi!+ p%bli" i$!ees!. I! is o& %di"ial $o!i"e !+a! !+e s!a$dad pa"!i"e &o ba$2s be&oe appo#i$, a loa$ is !o se$d a s!a&& !o !+e pope!y o&&eed as "olla!eal a$d #ei&y !+e ,e$%i$e$ess o& !+e !i!le !o de!emi$e !+e eal ow$e o ow$es. O$e o& !+e CA?s &i$di$,s i$ !+is "ase is !+a! i$ !+e "o%se o& i!s #ei&i"a!io$ pe!i!io$e >= was i$&omed o& !+e pe#io%s TCTs "o#ei$, !+e s%be"! pope!y. A$d !+e >= +as $o! "a!e,oi"ally "o$!es!ed !+is &i$di$,. I! is e#ide$! &om !+e &a"es o& !+ose !i!les !+a! !+e ow$es+ip o& !+e la$d "+a$,ed &om Cop%- !o o$do" &om o$do" !o !+e >ala,a$ases a$d &om !+e >ala,a$ases !o !+e So$,"%a$s i$ less !+a$ !+ee mo$!+s a$d mo!,a,ed !o >= wi!+i$ &o% mo$!+s o& !+e las! !a$s&e. T+e abo#e i$&oma!io$ i$ !%$ s+o%ld +a#e di#e$ !+e >= !o loo2 a! !+e deeds o& sale i$#ol#ed. I! wo%ld +a#e !+e$ dis"o#eed !+a! !+e pope!y was sold &o idi"%lo%sly low pi"es: Cop%- s%pposedly sold i! !o o$do" &o %s! >5)))).)); o$do" !o !+e >ala,a$ases &o %s! >45))).)); a$d !+e >ala,a$ases !o !+e So$,"%a$s also &o %s! >5)))).)). Ye! !+e >= ,a#e !+e pope!y a$ appaised #al%e o& >K04K).)). A$yo$e w+o delibea!ely i,$oes a si,$i&i"a$! &a"! !+a! wo%ld "ea!e s%spi"io$ i$ a$ o!+ewise easo$able peso$ "a$$o! be "o$sideed as a$ i$$o"e$! mo!,a,ee &o #al%e. >= #s. Cop%-. Philippine #ational Bank, as the Attorney8in8fact of 3pal Portfolio Invest(ents MSP08A/!N, Inc. vs. /ercedes !orpu5, represented )y her Attorney8in8fact 0alentina !orpu5, ".R. #o. $%-*&, e)ruary $+, +$. Wai#e; #alidi!y; wi!+ espe"! !o i,+! o& edemp!io$. Se!!led is !+e %le !+a! &o a wai#e !o be #alid a$d e&&e"!i#e i! m%s! i$ !+e &is! pla"e be "o%"+ed i$ "lea a$d %$eH%i#o"al !ems w+i"+ will lea#e $o do%b! as !o !+e i$!e$!io$ o& a pa!y !o ,i#e %p a i,+! o be$e&i! w+i"+ le,ally pe!ai$s !o +im. Addi!io$ally !+e i$!e$!io$ !o wai#e a i,+! o a$ ad#a$!a,e m%s! be s+ow$ "lealy a$d "o$#i$"i$,ly. U$&o!%$a!ely ACFLC &ailed !o "o$#i$"e %s !+a! espo$de$!s wai#ed !+ei i,+! o& edemp!io$ #ol%$!aily. I$ &i$e w+e$ !+e edemp!io$e "+ooses !o e9e"ise +is i,+! o& edemp!io$ i! is !+e poli"y o& !+e law !o aid a!+e !+a$ !o de&ea! +is i,+!. T+%s we a&&im !+e CA i$ $%lli&yi$, !+e wai#e o& !+e i,+! o& edemp!io$ po#ided i$ !+e eal es!a!e mo!,a,e. Asian !athay inance and Leasing !orporation vs. Spouses !esario "ravador and #or(a e 0era and Spouses ?((a !oncepcion ". u(igpi and ederico L. u(igpi, ".R. #o. $%'&&, ;uly &, +$
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o& !+e sale pe!i!io$es wee $o lo$,e !+e absol%!e ow$es o& said s+aes ma2i$, !+e pled,e "o$s!i!%!ed o#e said NN> s+aes $%ll a$d #oid. Also i! is $e"essay %$de A!. *)05 !+a! !+e peso$ "o$s!i!%!i$, !+e pled,e +as !+e &ee disposal o& +is o +e pope!y a$d i$ !+e abse$"e o& !+a! &ee disposal !+a! +e o s+e be le,ally a%!+oi-ed &o !+e p%pose 3!+id eleme$!6. T+is eleme$! is abse$! i$ !+e "ase a! ba. >e!i!io$es $o lo$,e +a#e !+e &ee disposal o& !+e NN> s+aes w+e$ EI sold said s+aes a! !+e s!o"2 e9"+a$,e as !+ey ae $o lo$,e !+e ow$es o& !+e s+aes. T+%s !+ee was $o #alid pled,e "o$s!i!%!ed o$ !+e NN> s+aes. T+e $o!i"e o& sale ass%mi$, i! i$"opoa!es !+e a""essoy "o$!a"! o& pled,e meely s!a!ed />ope!y7 as "olla!eal i$ addi!io$ !o NN> s+aes. T+is is a bla!a$! #iola!io$ o& A!. *)' w+i"+ po#ides !+a! /a pled,e s+all $o! !a2e e&&e"! a,ai$s! !+id peso$s i& des"ip!io$ o& !+e !+i$, pled,ed a$d !+e da!e o& !+e pled,e do $o! appea i$ a p%bli" i$s!%me$!.7 T+e !+i$, pled,ed m%s! be amply a$d "lealy a$d spe"i&i"ally ide$!i&ied.%$de E#ide$!ly !+e wod is #a,%e boado& a$d "o$&%si$, !o !+e ow$es+ip. 8e$"edes"ibed i! does $o! sa!is&y !+e pes"ip!io$ A!. *)' o& !+e/>ope!y7 Code. Wose !+e $o!i"e sale is $o! i$ as a p%bli" i$s!%me$! as eH%ied by said le,al po#isio$; !+ee&oe !+e pled,e o$ /pope!y7 is #oid a$d wi!+o%! le,al e&&e"!. Moeo#e !+e $o!i"es o& sale m%s! be "o$s!%ed a,ai$s! EI. A$y ambi,%i!y i$ a "o$!a"! w+ose !ems ae s%s"ep!ible o& di&&ee$! i$!epe!a!io$s m%s! be ead a,ai$s! !+e pa!y w+o da&!ed i!. T+e @MCI s+aes w+i"+ EI "o$s!%ed !o be i$"l%ded wi!+i$ !+e ambi! o& !+e wod /pope!y7 "a$$o! be "o$sideed !+e !+i$, pled,ed !o se"%e !+e b%y ba"2 o& !+e NN> s+aes i$ #iew o& !+e #a,%e$ess o& !+e wod />ope!y7 a$d !+e $o$Bappli"abili!y o& !+e S@AA !o !+e sale o& !+e NN> s+aes. Pacific Rehouse !orporation, et al. vs. ?IB Securities, Inc.>".R. #o. $%*<', 3cto)er $<, +$.
UASIBCO=TRACTS
@ama,es; e$i"+me$!. T+ee is %$%s! e$i"+me$! a peso$ is %$%s!ly be$e&i!ed a$d 3*6 s%"+ be$e&i! is dei#ed a! %$%s! !+e e9pe$se o& o wi!+ dama,es !o a$o!+e. I$ !+ew+e$ i$s!a$!346"ase !+e &a%d%le$! s"+eme "o$"o"!ed by Uy allowed +im !o impopely e"ei#e !+e po"eeds o& !+e !+ee "ossed "+e"2s a$d e$oy !+e po&i!s &om !+ese po"eeds d%i$, !+e e$!ie !ime !+a! i! was wi!++eld &om SS>I. EH%i!able !+o%,+ i!s ,oss $e,li,e$"e a$d mislaid !%s! o$ Uy be"ame a$ %$wi!!i$, i$s!%me$! i$ Uy?s s"+eme. EH%i!able?s &a%l! e$des i! solidaily liable wi!+ Uy i$so&a as espo$de$!s ae "o$"e$ed. =e#e!+eless as be!wee$ EH%i!able a$d Uy EH%i!able s+o%ld be allowed !o e"o#e &om Uy w+a!e#e amo%$!s EH%i!able may be made !o pay %$de !+e %d,me$!. I! is "lea !+a! EH%i!able did $o! po&i! i$ Uy?s s"+eme. @isallowi$, EH%i!able?s "ossB "laim a,ai$s! Uy is !a$!amo%$! !o allowi$, Uy !o %$%s!ly e$i"+ +imsel& a! !+e e9pe$se o& EH%i!able. Fo !+is easo$ !+e Co%! allows EH%i!able?s "ossB"laim a,ai$s! Uy. ?quita)le Banking !orporation vs. Special Steel Products, Inc. and Augusto L. Pardo ; G.R. =o. 4K5(5) %$e 4( *)4*. U$%s! e$i"+me$!. U$%s! e$i"+me$! e9is!s /w+e$ a peso$ %$%s!ly e!ai$s a be$e&i! !o !+e loss o& a$o!+e o w+e$ a peso$ e!ai$s mo$ey o pope!y o& a$o!+e a,ai$s! !+e &%$dame$!al pi$"iples o& %s!i"e eH%i!y a$d ,ood "o$s"ie$"e.7 U$de A!. ** o& !+e Ci#il Code !+ee is %$%s! e$i"+me$! w+e$ 346 a peso$ is %$%s!ly be$e&i!ed a$d 3*6 s%"+ be$e&i! is dei#ed a! !+e e9pe$se o& o wi!+ dama,es !o a$o!+e. T+e !em is &%!+e %sed !o depi"! es%l! o e&&e"! o& &ail%e !o ma2e em%$ea!io$ o& o &o pope!y o be$e&i!s e"ei#ed %$de "i"%ms!a$"es !+a! ,i#e ise !o le,al o eH%i!able obli,a!io$ !o a""o%$! &o !+em; !o be e$!i!led !o em%$ea!io$ o$e m%s! "o$&e be$e&i! by mis!a2e &a%d "oe"io$ o eH%es!.
I$ ode &o a$ %$%s! e$i"+me$! "laim pospe o$ly po#e !+a! !+e o!+e i$ pa!y o$e?s/%$%s!ly7 e&&o!s o !+e obli,a!io$s o& o!+es; i! m%s! also be!o s+ow$ !+a!o$e !+em%s! o!+e$o! pa!y was %$%s!ly e$i"+ed !+e be$e&i!ed se$se !+a!&om !+e !em "o%ld mea$ /ille,ally7 o /%$law&%lly.7 LC@C was awae !+a! !+e es"ala!io$ a,eeme$! was limi!ed !o >( millio$. I! is $o! e$!i!led !o em%$ea!io$ o& !+e e9"ess si$"e i! did $o! "o$&e !+is be$e&i! by mis!a2e &a%d "oe"io$ o eH%es!. Ra!+e i! #ol%$!aily i$&%sed !+e e9"ess amo%$! wi!+ &%ll 2$owled,e !+a! >R8C +ad $o obli,a!io$ !o eimb%se i!. Philippine Realty and 9olding !orp. vs. Ley !onst. and ev. !orp.7Ley !ons. and ev. !orp. vs. Philippine Realty and 9olding !orp., G.R. =o. 455<0JG.R. =o. 4K0K'. %$e 4( *)44 U$%s! e$i"+me$! de&ea!s %le po+ibi!i$, m%l!ipli"i!y o& s%i!s. I$ !hieng v. Santos !+is Co%! %led !+a! a mo!,a,eB"edi!o may i$s!i!%!e a,ai$s! !+e mo!,a,eBdeb!o ei!+e a peso$al a"!io$ &o deb! o a eal a"!io$ !o &oe"lose !+e mo!,a,e. T+e
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A!. **. E#ey peso$ w+o !+o%,+ a$ a"! o& pe&oma$"e by a$o!+e o a$y o!+e mea$s a"H%ies o "omes i$!o possessio$ o& some!+i$, a! !+e e9pe$se o& !+e la!!e wi!+o%! %s! o le,al ,o%$d s+all e!%$ !+e same !o +im. T+ee is %$%s! e$i"+me$! /w+e$ a peso$ %$%s!ly e!ai$s a be$e&i! !o !+e loss o& a$o!+e o w+e$ a peso$ e!ai$s mo$ey o pope!y o& a$o!+e a,ai$s! !+e &%$dame$!al pi$"iples o& %s!i"e eH%i!y a$d ,ood "o$s"ie$"e.7 T+e pi$"iple o& %$%s! e$i"+me$! eH%ies !wo "o$di!io$s: 346 !+a! a peso$ is be$e&i!ed wi!+o%! a #alid basis o %s!i&i"a!io$ a$d 3*6 !+a! s%"+ be$e&i! is dei#ed a! !+e e9pe$se o& a$o!+e. T+e mai$ obe"!i#e o& !+e pi$"iple a,ai$s! %$%s! e$i"+me$! is !o pe#e$! o$e &om e$i"+i$, +imsel& a! !+e e9pe$se o& a$o!+e wi!+o%! %s! "a%se o "o$sidea!io$. T+e pi$"iple is appli"able i$ !+is "ase "o$sidei$, !+a! Ed$a admi!!ed ob!ai$i$, a loa$ &om pe!i!io$es a$d !+e same +as $o! bee$ &%lly paid wi!+o%! %s! "a%se. T+e @eed was de"laed #oid eo$eo%sly a! !+e i$s!a$"eelie& o& Ed$a &is!!+e w+e$ s+ea$"+ aised '(. i! as>e!i!io$e a de&e$se"o%ld be&oe$o! !+ebe RTC a$"+!o(( a$d w+e$ s+e a$al!e$a!i#e a"!io$ &o de"laa!oy be&oe RTC e9pe"!ed as2 !+ese"o$d RTC a$"+ (( &iled &o a$ emedy as w+a! !+e Co%! o& Appeals %led !+a! +e s+o%ld +a#e do$e be"a%se !+e RTC a$"+ (( aleady s!a!ed !+a! i! +ad $o %isdi"!io$ o#e a$y peso$al a"!io$ !+a! pe!i!io$e mi,+! +a#e a,ai$s! Ed$a. Co$sidei$, !+e "i"%ms!a$"es o& !+is "ase !+e pi$"iple a,ai$s! %$%s! e$i"+me$! bei$, a s%bs!a$!i#e law s+o%ld pe#ail o#e !+e po"ed%al %le o$ m%l!ipli"i!y o& s%i!s. T+e Co%! o& Appeals i$ !+e assailed de"isio$ &o%$d !+a! Ed$a admi!!ed !+e loa$ e9"ep! !+a! s+e "laimed i! o$ly amo%$!ed !o >(<)))). Ed$a s+o%ld $o! be allowed !o %$%s!ly e$i"+ +esel& be"a%se o& !+e eo$eo%s de"isio$s o& !+e !wo !ial "o%!s w+e$ s+e H%es!io$ed !+e #alidi!y o& !+e @eed. Moeo#e Ed$a s!ill +as a$ oppo!%$i!y !o s%bmi! +e de&e$ses be&oe !+e RTC a$"+ <* o$ +e "laim as !o !+e amo%$! o& +e i$deb!ed$ess. Arturo Sarte lores v. Spouses ?nrico L. Lindo, ;r. and ?dna !. Lindo, ".R. #o. $%<-%*. April $<, +$$ U$%s! e$i"+me$!. La$d a$2 mai$!ai$s !+a! !+e !ial "o%! eo$eo%sly applied !+e pi$"iple o& eH%i!y a$d %s!i"e i$ odei$, i! !o e!%$ !+e >+> K5)))) paid by Al&edo. Al&edo was alle,edly i$ bad &ai!+ a$d i$ es!oppel. La$d a$2 "o$!e$ds !+a! i! e$oyed !+e pes%mp!io$ o& e,%lai!y a$d was i$ ,ood &ai!+ w+e$ i! a""ep!ed Al&edo?s !e$de o& >+> K5)))). I! easo$s !+a! i! did $o! %$d%ly e$i"+ i!sel& a! Al&edo?s e9pe$se d%i$, !+e &oe"los%e o& !+e mo!,a,ed pope!ies si$"e i! !e$deed i!s bid by s%b!a"!i$, >+> K5)))) &om !+e Spo%ses Sy?s o%!s!a$di$, loa$ obli,a!io$. Al&edo?s e"o%se !+e$ a""odi$, !o La$d a$2 is !o +a#e +is payme$! eimb%sed by !+e Spo%ses Sy. We %le !+a! La$d a$2 is s!ill liable &o !+e e!%$ o& !+e >+> K5)))) based o$ !+e pi$"iple o& %$%s! e$i"+me$!. La$d a$2 is "oe"! i$ a,%i$, !+a! i! +as $o obli,a!io$ as "edi!o !o e"o,$i-e Al&edo as a peso$ wi!+ i$!ees! i$ !+e &%l&illme$! o& !+e obli,a!io$. %! w+ile La$d a$2 is $o! bo%$d !o a""ep! !+e s%bs!i!%!io$ o& deb!os i$ !+e s%be"! eal es!a!e mo!,a,e i! is es!opped by i!s a"!io$ o& a""ep!i$, Al&edo?s payme$! &om a,%i$, !+a! i! does $o! +a#e !o e"o,$i-e Al&edo as !+e $ew deb!o. y a""ep!i$, Al&edo?s payme$! a$d 2eepi$, sile$! o$ !+e s!a!%s o& Al&edo?s appli"a!io$ La$d a$2 misled Al&edo !o belie#e !+a! +e +ad &o all i$!e$!s a$d p%poses s!epped i$!o !+e s+oes o& !+e Spo%ses Sy. We !%$ !+e$ o$ !+e pi$"iple %po$ w+i"+ La$d a$2 m%s! e!%$ Al&edo?s payme$!. U$%s! e$i"+me$! e9is!s /w+e$ a peso$ %$%s!ly e!ai$s a be$e&i! !o !+e loss o& a$o!+e o w+e$ a peso$ e!ai$s mo$ey o pope!y o& a$o!+e a,ai$s! !+e &%$dame$!al pi$"iples o& %s!i"e eH%i!y a$d ,ood "o$s"ie$"e.7 T+ee is %$%s! e$i"+me$! %$de A!. ** o& !+e Ci#il Code w+e$ 346 a peso$ is %$%s!ly be$e&i!ed a$d 3*6 s%"+ be$e&i! is dei#ed a! !+e e9pe$se o& o wi!+ dama,es !o a$o!+e. Addi!io$ally %$%s! e$i"+me$! +as bee$ applied !o a"!io$s "alled accion in re( verso. I$ ode !+a! !+e accion in re( verso may pospe !+e &ollowi$, "o$di!io$s m%s! "o$"%: 346 !+a! !+e de&e$da$! +as bee$ e$i"+ed; 3*6 !+a! !+e plai$!i&& +as s%&&eed a loss; 3(6 !+a! !+e e$i"+me$! o& !+e de&e$da$! is wi!+o%! %s! o le,al ,o%$d; a$d 3<6 !+a! !+e plai$!i&& +as $o o!+e a"!io$ based o$ "o$!a"! H%asiB"o$!a"! "ime o H%asiBdeli"!. T+e pi$"iple o& %$%s! e$i"+me$! esse$!ially "o$!empla!es payme$! w+e$ !+ee is $o d%!y !o pay a$d !+e peso$ w+o e"ei#es !+e payme$! +as $o i,+! !o e"ei#e i!. U$%s! e$i"+me$!. U$%s! e$i"+me$! "laims do $o! lie simply be"a%se o$e pa!y be$e&i!s &om !+e e&&o!s o obli,a!io$s o& o!+es b%! i$s!ead i! m%s! be s+ow$ !+a! a pa!y was %$%s!ly e$i"+ed i$ !+e se$se !+a! !+e !em %$%s!ly "o%ld mea$ ille,ally o %$law&%lly. Moeo#e !o s%bs!a$!ia!e a "laim &o %$%s! e$i"+me$! !+e "laima$! m%s! %$eH%i#o"ally po#e !+a! a$o!+e pa!y 2$owi$,ly e"ei#ed some!+i$, o& #al%e !o w+i"+ +e was $o& "$&!&l" a$d !+a! !+e s!a!e o& a&&ais ae s%"+ !+a! i! wo%ld be %$%s! &o !+e eso$ !o 2ee !+e be$e&i!. U$ %s! e$i"+me$! is a !em %sed !o de i"! es%l! o e&&e"! o& &ail%e !o ma2e em%$ea!io$ o& o &o
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A!i"le ** o& !+e =ew Ci#il Code po#ides !+a! e#ey peso$ w+o !+o%,+ a$ a"! o& pe&oma$"e by a$o!+e o a$y o!+e mea$s a"H%ies o "omes i$!o possessio$ o& some!+i$, a! !+e e9pe$se o& !+e la!!e wi!+o%! %s! o le,al ,o%$d s+all e!%$ !+e same !o +im. I$ ode !+a! accion in re( verso may pospe !+e esse$!ial eleme$!s m%s! be pese$!: 346 !+a! !+e de&e$da$! +as bee$ e$i"+ed 3*6 !+a! !+e plai$!i&& +as s%&&eed a loss 3(6 !+a! !+e e$i"+me$! o& !+e de&e$da$! is wi!+o%! %s! o le,al ,o%$d a$d 3<6 !+a! !+e plai$!i&& +as $o o!+e a"!io$ based o$ "o$!a"! H%asiB"o$!a"! "ime o H%asiBdeli"!. A$ accion in re( verso is "o$sideed meely a$ a%9iliay a"!io$ a#ailable o$ly w+e$ !+ee is $o o!+e emedy o$ "o$!a"! H%asiB "o$!a"! "ime a$d H%asiBdeli"!. I& !+ee is a$ ob!ai$able a"!io$ %$de a$y o!+e i$s!i!%!io$ o& posi!i#e law !+a! a"!io$ m%s! be eso!ed !o a$d !+e pi$"iple o& accion in re( verso will $o! lie. As &o%$d by bo!+ !+e CIAC a$d a&&imed by !+e CA pe!i!io$e &ailed !o po#e !+a! espo$de$!?s &ee %se o& !+e ma$li&! was wi!+o%! le,al ,o%$d based o$ !+e po#isio$s o& !+ei "o$!a"!. T+%s !+e !+id eH%isi!e i.e. !+a! !+e e$i"+me$! o& espo$de$! is wi!+o%! %s! o le,al ,o%$d is missi$,. I$ addi!io$ pe!i!io$e?s "laim is based o$ "o$!a"! +e$"e !+e &o%!+ eH%isi!e !+a! !+e plai$!i&& +as $o o!+e a"!io$ based o$ "o$!a"! H%asiB"o$!a"! "ime o H%asiBdeli"! is also abse$!. Clealy !+e pi$"iple o& %$%s! e$i"+me$! is $o! appli"able i$ !+is "ase. Shinryo MPhilippinesN !o(pany, Inc. vs. RR# Incorporated> ".R. #o. $2+&+&, 3cto)er +, +$. U$%s! e$i"+me$!. T+e pi$"iple o& %$%s! e$i"+me$! "a$$o! be #alidly i$#o2ed by a pa!y w+o !+o%,+ +is ow$ a"! o omissio$ !oo2 !+e is2 o& bei$, de$ied payme$! &o addi!io$al "os!s by $o! ,i#i$, !+e o!+e pa!y pio $o!i"e o& s%"+ "os!s a$dJo by $o! se"%i$, !+ei wi!!e$ "o$se$! !+ee!o as eH%ied by law a$d !+ei "o$!a"!. ?lpidio S. 4y, doing )usiness under the na(e and style of ?dison evelop(ent !onstruction vs. Pu)lic ?states Authority, ".R. #os. $*2-+&8+', ;uly 2, +$.
VIII. @UASI8DELICTS @ama,es; H%asiBdeli"!; #i"aio%s liabili!y. As a ,e$eal %le o$e is o$ly espo$sible &o +is ow$ a"! o omissio$. T+%s a peso$ will ,e$eally be +eld liable o$ly &o !+e !o!s "ommi!!ed by +imsel& a$d $o! by a$o!+e. T+is ,e$eal %le is laid dow$ i$ A!i"le *4K o& !+e Ci#il Code. ased o$ !+e abo#eB"i!ed a!i"le !+e obli,a!io$ !o i$dem$i&y a$o!+e &o dama,e "a%sed by o$e?s a"! o omissio$ is imposed %po$ !+e !o!&easo +imsel& i.e. !+e peso$ w+o "ommi!!ed !+e $e,li,e$! a"! o omissio$. T+e law +owe#e po#ides &o e9"ep!io$s w+e$ i! ma2es "e!ai$ peso$s liable &o !+e a"! o omissio$ o& a$o!+e. O$e e9"ep!io$ is a$ employe w+o is made #i"aio%sly liable &o !+e !o! "ommi!!ed by +is employee. A!i"le *40) o& !+e Ci#il Code s!a!es: A!i"le *40). T+e obli,a!io$ imposed by A!i"le *4K is dema$dable $o! o$ly &o o$e?s ow$ a"!s o omissio$s b%! also &o !+ose o& peso$s &o w+om o$e is espo$sible. 9999 Employes s+all be liable &o !+e dama,es "a%sed by !+ei employees a$d +o%se+old +elpes a"!i$, wi!+i$ !+e s"ope o& !+ei assi,$ed !as2s e#e$ !+o%,+ !+e &ome ae $o! e$,a,ed i$ a$y b%si$ess o i$d%s!y. 9999 T+e espo$sibili!y !ea!ed o& i$ !+is a!i"le s+all "ease w+e$ !+e peso$s +eei$ me$!io$ed po#e !+a! !+ey obse#ed all !+e dili,e$"e o& a ,ood &a!+e o& a &amily !o pe#e$! dama,e.
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!+e las! paa,ap+ o& A!i"le *40) o& !+e Ci#il Code !+e employe may i$#o2e !+e de&e$se !+a! +e obse#ed all !+e dili,e$"e o& a ,ood &a!+e o& a &amily !o pe#e$! dama,e. As i!s "oe de&e$se Fil"a "o$!e$ds !+a! A!i"le *4K i$ ela!io$ wi!+ A!i"le *40) o& !+e Ci#il Code is i$appli"able be"a%se i! pes%pposes !+e e9is!e$"e o& a$ employeBemployee ela!io$s+ip. A""odi$, !o Fil"a i! "a$$o! be +eld liable %$de !+e s%be"! po#isio$s be"a%se !+e di#e o& i!s #e+i"le a! !+e !ime o& !+e a""ide$! Floes"a is $o! i!s employee b%! !+a! o& i!s Copoa!e Se"e!ay A!!y. Flo. We "a$$o! a,ee. I! is well se!!led !+a! i$ "ase o& mo!o #e+i"le mis+aps &'" #"*!s&"#" o%$"# of &'" +o&o# 3"'!l" !s o$s!"#" as &'" "+lo-"# of &'" &o#&f"aso#8#!3"# a$d is made pimaily liable &o !+e !o! "ommi!!ed by !+e la!!e %$de A!i"le *4K i$ ela!io$ wi!+ A!i"le *40) o& !+e Ci#il Code. T+e a!io$ale &o !+e %le !+a! a e,is!eed ow$e is #i"aio%sly liable &o dama,es "a%sed by !+e opea!io$ o& +is mo!o #e+i"le is e9plai$ed by !+e pi$"iple be+i$d mo!o #e+i"le e,is!a!io$ w+i"+ +as bee$ dis"%ssed by !+is Co%! i$ ?re5o, a$d "i!ed by !+e CA i$ i!s de"isio$: T'" +a!$ a!+ of +o&o# 3"'!l" #"*!s&#a&!o$ !s &o !"$&!f- &'" o%$"# so &'a& !f a$- a!"$& 'a"$s o# &'a& a$- a+a*" o# !$:,#- !s a,s" - &'" 3"'!l" o$ &'" ,l! '!*'%a-s #"so$s!!l!&- &'"#"fo# a$ " f!4" o$ a "f!$!&" !$!3!,al &'" #"*!s&"#" o%$"#. I$s!a$"es ae $%meo%s w+ee #e+i"les %$$i$, o$ p%bli" +i,+ways "a%sed a""ide$!s o i$%ies !o pedes!ia$s o o!+e #e+i"les wi!+o%! posi!i#e ide$!i&i"a!io$ o& !+e ow$e o di#es o wi!+ #ey s"a$! mea$s o& ide$!i&i"a!io$. I! is !o &oes!all !+ese "i"%ms!a$"es so i$"o$#e$ie$! o pe%di"ial !o !+e p%bli" !+a! !+e mo!o #e+i"le e,is!a!io$ is pimaily odai$ed i$ !+e i$!ees! o& !+e de!emi$a!io$ o& peso$s espo$sible &o dama,es o i$%ies "a%sed o$ p%bli" +i,+ways. Demp+asis o%s T+%s w+e!+e !+ee is a$ employeBemployee ela!io$s+ip be!wee$ !+e e,is!eed ow$e a$d !+e di#e is iele#a$! i$ de!emi$i$, !+e liabili!y o& !+e e,is!eed ow$e w+o !+e law +olds pri(arily and directly responsi)le &o a$y a""ide$! i$%y o dea!+ "a%sed by !+e opea!io$ o& !+e #e+i"le i$ !+e s!ee!s a$d +i,+ways. ilcar ransport Services vs. ;ose A. ?spinas; G.R. =o. 4K4<5 %$e *) *)4*. @ama,es; $e,li,e$"e; po9ima!e "a%se. >=?s a"! o& eleasi$, !+e po"eeds o& !+e "+e"2 pio !o !+e lapse o& !+e 45Bday "leai$, peiod was !+e po9ima!e "a%se o& !+e loss. 8ee w+ile >= +i,+li,+!s O&elia?s &a%l! i$ a""ommoda!i$, a s!a$,e?s "+e"2 a$d deposi!i$, i! !o !+e ba$2 i! emai$s m%m i$ i!s elease o& !+e po"eeds !+eeo& wi!+o%! e9+a%s!i$, !+e 45Bday "leai$, peiod a$ a"! w+i"+ "o$!a#e$ed es!ablis+ed ba$2i$, %les a$d pa"!i"e. I! is wo!+y o& $o!i"e !+a! !+e 45Bday "leai$, peiod all%ded !o is "o$s!%ed as 45&a!+e ba$2i$, I! beas !+a! /!+e dili,e$"e is eH%ied o& ba$2s moe !+a$&ailed !+a! o& Roma$ pa!e &amilias o a ,ood o& adays. &amily. T+e s!essi$, +i,+es! de,ee o& dili,e$"e e9pe"!ed.7 >=ismiseably !oado i!s d%!y o& e9e"isi$, e9!aodi$ay dili,e$"e a$d easo$able b%si$ess p%de$"e. T+e dise,ad o& i!s ow$ ba$2i$, poli"y amo%$!s !o ,oss $e,li,e$"e w+i"+ !+e law de&i$es as /$e,li,e$"e "+aa"!ei-ed by !+e wa$! o& e#e$ sli,+! "ae a"!i$, o omi!!i$, !o a"! i$ a si!%a!io$ w+ee !+ee is d%!y !o a"! $o! i$ad#e!e$!ly b%! wil&%lly a$d i$!e$!io$ally wi!+ a "o$s"io%s i$di&&ee$"e !o "o$seH%e$"es i$ so &a as o!+e peso$s may be a&&e"!ed.7 Wi!+ e,ad !o "olle"!io$ o e$"as+me$! o& "+e"2s s%&&i"e i! !o say !+a! !+e law imposes o$ !+e "olle"!i$, ba$2 !+e d%!y !o s"%!i$i-e dili,e$!ly !+e "+e"2s deposi!ed wi!+ i! &o !+e p%pose o& de!emi$i$, !+ei ,e$%i$e$ess a$d e,%lai!y. /T+e "olle"!i$, ba$2 bei$, pimaily e$,a,ed i$ ba$2i$, +olds i!sel& o%! !o !+e p%bli" as !+e e9pe! o$ !+is &ield a$d !+e law !+%s +olds i! !o a +i,+ s!a$dad o& "o$d%"!.7 A ba$2 is e9pe"!ed !o be a$ e9pe! i$ ba$2i$, po"ed%es a$d i! +as !+e $e"essay mea$s !o as"e!ai$ w+e!+e a "+e"2 lo"al o &oei,$ is s%&&i"ie$!ly &%$ded. Philippine #ational Bank vs. Spouses !heah !hee !hong and 3felia !a(acho !heah7Spouses !heah !hee !hong and 3felia !a(acho !hea vs. Philippine #ational Bank> G.R. =os. 4K)05JG.R. =o. 4K)0'* Apil *5 *)4*. @ama,es; res ipsa loquitur; eleme$!s; liabili!y o& employe. U$de !+e do"!i$e o& es ipsa loH%i!% /Dw+ee !+e !+i$, !+a! "a%sed !+e i$%y "omplai$ed o& is s+ow$ !o be %$de !+e ma$a,eme$! o& !+e de&e$da$! o +is se#a$!s; a$d !+e a""ide$! i$ !+e odi$ay "o%se o& !+i$,s wo%ld $o! +appe$ i& !+ose w+o +ad ma$a,eme$! o "o$!ol %sed pope "ae i! a&&ods easo$able e#ide$"e 1 i$ !+e abse$"e o& a s%&&i"ie$! easo$able a$d lo,i"al e9pla$a!io$ by de&e$da$! 1 !+a! !+e a""ide$! aose &om o was "a%sed by !+e de&e$da$!?s wa$! o& "ae.7 Res ipsa loH%i!% is /meely e#ide$!iay a mode o& poo& o a mee po"ed%al "o$#e$ie$"e si$"e i! &%$is+es a s%bs!i!%!e &o a$d elie#es a plai$!i&& o& !+e b%de$ o& pod%"i$, a spe"i&i" poo& o& $e,li,e$"e.7 /e"o,$i-es !+a!o&pa!ies may es!ablis+ pima &a"ie $e,li,e$"e wi!+o%! die"!poo& poo& i! allowse$o%,+ !+e pi$"iple !o s%bs!i!%!eI!&o spe"i&i" poo& $e,li,e$"e. I! pemi!s !+e plai$!i&& !o pese$! alo$, wi!+ o&!+%s !+e a""ide$! o& !+e a!!e$di$, "i"%ms!a$"es !o i$#o2e !+e do"!i$e "ea!e a$ i$&ee$"e o pes%mp!io$ o& $e,li,e$"e a$d !+eeby pla"e o$ !+e de&e$da$! !+e b%de$ o& po#i$, !+a! !+ee was $o $e,li,e$"e o$ +is pa!.7 T+e do"!i$e is based pa!ly o$ /!+e !+eoy !+a! !+e de&e$da$! i$ "+a,e o& !+e i$s!%me$!ali!y w+i"+ "a%ses !+e i$%y ei!+e 2$ows !+e "a%se o& !+e a""ide$! o +as !+e bes! oppo!%$i!y o& as"e!ai$i$, i! w+ile !+e plai$!i&& +as $o s%"+ 2$owled,e a$d is !+ee&oe "ompelled !o alle,e $e,li,e$"e i$ ,e$eal !ems.7 T+e eH%isi!es o& !+e do"!i$e o& es ipsa loH%i!% as es!ablis+ed by %isp%de$"e ae as &ollows: 46 !+e a""ide$! is o& a 2i$d w+i"+ does $o! odi$aily o""% %$less someo$e is $e,li,e$!;
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T+e a&oeme$!io$ed eH%isi!es +a#i$, bee$ me! !+ee $ow aises a pes%mp!io$ o& $e,li,e$"e w+i"+ +e "o%ld +a#e o#e"ome by e#ide$"e !+a! +e e9e"ised d%e "ae a$d dili,e$"e i$ pe#e$!i$, s!a$,es &om %si$, +is eep. U$&o!%$a!ely +e &ailed !o do so. T+e opea!o o$ e"od o& a #e+i"le is pimaily espo$sible !o !+id peso$s &o !+e dea!+s o i$%ies "o$seH%e$! !o i!s opea!io$ e,adless o& w+e!+e !+e employee do#e !+e e,is!eed ow$e?s #e+i"le i$ "o$$e"!io$ wi!+ +is employme$!. Abse$! !+e "i"%ms!a$"e o& %$a%!+oi-ed %se<0 o !+a! !+e s%be"! #e+i"le was s!ole$ w+i"+ ae #alid de&e$ses a#ailable !o a e,is!eed ow$e +e "a$$o! es"ape liabili!y &o H%asiBdeli"! es%l!i$, &om +is eep?s %se. 3scar el !ar(en, ;r. vs. "eroni(o Bacoy, guradian and representing the children, na(ely, /ary /arorie B. /onsalud, et al.; G.R. =o. 4K(0K) Apil *5 *)4*. Limi!ed liabili!y %le; a#ailabili!y. Wi!+ espe"! !o pe!i!io$es? posi!io$ !+a! !+e Limi!ed Liabili!y R%le %$de !+e Code o& Comme"e s+o%ld be applied !o !+em !+e a,%me$! is mispla"ed. T+e said %le +as bee$ e9plai$ed !o be !+a! o& !+e eal a$d +ypo!+e"ay i$ mai!ime law loss w+ee !+e s+ipow$e o s+ip a,e$!?sI$liabili!y is +eld as meely +is i$!ees! i$ !+edo"!i$e #essel s%"+ !+a! a !o!al !+eeo& es%l!s i$ i!s e9!i$"!io$. !+is %isdi"!io$ !+is %le"oBe9!e$si#e is po#ided wi!+ i$ !+ee a!i"les o& !+e Code o& Comme"e. T+ese ae:
A!. 50K. T+e s+ip a,e$! s+all also be "i#illy liable &o !+e i$dem$i!ies i$ &a#o o& !+id peso$s w+i"+ may aise &om !+e "o$d%"! o& !+e "ap!ai$ i$ !+e "ae o& !+e ,oods w+i"+ +e loaded o$ !+e #essel; b%! +e may e9emp! +imsel& !+ee&om by aba$do$i$, !+e #essel wi!+ all +e eH%ipme$! a$d !+e &ei,+! i! may +a#e ea$ed d%i$, !+e #oya,e. A!. 5'). T+e "oBow$es o& !+e #essel s+all be "i#illy liable i$ !+e popo!io$ o& !+ei i$!ees!s i$ !+e "ommo$ &%$d &o !+e es%l!s o& !+e a"!s o& !+e "ap!ai$ e&eed !o i$ A!. 50K. Ea"+ "oBow$e may e9emp! +imsel& &om !+is liabili!y by !+e aba$do$me$! be&oe a $o!ay o& !+e pa! o& !+e #essel belo$,i$, !o +im. A!. 0(K. T+e "i#il liabili!y i$"%ed by s+ipow$es i$ !+e "ase pes"ibed i$ !+is se"!io$ s+all be %$des!ood as limi!ed !o !+e #al%e o& !+e #essel wi!+ all i!s app%!e$a$"es a$d &ei,+!a,e se#ed d%i$, !+e #oya,e. A!i"le 0(K spe"i&i"ally applies !o "ases i$#ol#i$, "ollisio$ w+i"+ is a $e"essay "o$seH%e$"e o& !+e i,+! !o aba$do$ !+e #essel ,i#e$ !o !+e s+ipow$e o s+ip a,e$! %$de !+e &is! po#isio$ 1 A!i"le 50K. Similaly A!i"le 5') is a ei!ea!io$ o& A!i"le 50K o$ly !+is !ime !+e si!%a!io$ is !+a! !+e #essel is "oBow$ed by se#eal peso$s. Ob#io%sly !+e &oe%$$e o& !+e Limi!ed Liabili!y R%le %$de !+e Code o& Comme"e is A!i"le 50K. =ow !+e la!!e is H%i!e "lea o$ w+i"+ i$dem$i!ies may be "o$&i$ed o es!i"!ed !o !+e #al%e o& !+e #essel p%s%a$! !o !+e said R%le a$d !+ese ae !+e 1 /i$dem$i!ies i$ &a#o o& !+id peso$s w+i"+ may aise &om !+e "o$d%"! o& !+e "ap!ai$ i$ !+e "ae o& !+e ,oods w+i"+ +e loaded o$ !+e #essel.7 T+%s w+a! is "o$!empla!ed is !+e liabili!y !o !+id peso$s w+o may +a#e deal! wi!+ !+e s+ipow$e !+e a,e$! o e#e$ !+e "+a!ee i$ "ase o& demise o baeboa! "+a!e. T+e o$ly peso$ w+o "o%ld a#ail o& !+is is !+e s+ipow$e Co$"ep"io$. 8e is !+e #ey peso$ w+om !+e Limi!ed Liabili!y R%le +as bee$ "o$"ei#ed !o po!e"!. T+e pe!i!io$es "a$$o! i$#o2e !+is as a de&e$se. Agustin P. ela orre v. he 9on. !ourt of Appeals, et al.7Philippine rigon Shipyard !orporation, et al. v. !risosto(o ". !oncepcion, et al., ".R. #o. $'%%7".R. #o. $'&'&, ;uly $<, +$$ C+a!ee a$d s%bB"+a!ee; liabili!y. I$ !+e pese$! "ase !+e "+a!ee a$d !+e s%bB"+a!ee !+o%,+ !+ei espe"!i#e "o$!a"!s o& a,eeme$!J"+a!e pa!ies ob!ai$ed !+e %se a$d se#i"e o& !+e e$!ie LCTBosep+i$e. T+e #essel was li2ewise ma$$ed by !+e "+a!ee a$d la!e by !+e s%bB"+a!ee?s people. Wi!+ !+e "omple!e a$d e9"l%si#e eli$H%is+me$! o& possessio$ "omma$d a$d $a#i,a!io$ o& !+e #essel !+e "+a!ee a$d la!e !+e s%bB"+a!ee be"ame !+e #essel?s ow$e pro hac vice. =ow a$d i$ !+e abse$"e o& a$y s+owi$, !+a! !+e #essel o a$y pa! !+eeo& was "omme"ially o&&eed &o %se !o !+e p%bli" !+e abo#e a,eeme$!sJ"+a!e pa!ies ae !+a! o& a pi#a!e "aia,e w+ee !+e i,+!s o& !+e "o$!a"!i$, pa!ies ae pimaily de&i$ed a$d ,o#e$ed by !+e s!ip%la!io$s i$ !+ei "o$!a"!. Al!+o%,+ "e!ai$ s!a!%!oy i,+!s a$d obli,a!io$s o& "+a!e pa!ies ae &o%$d i$ !+e Code o& Comme"e !+ese po#isio$s as "oe"!ly poi$!ed o%! by !+e RTC ae $o! appli"able i$ !+e pese$! "ase. I$deed $o$e o& !+e po#isio$s &o%$d i$ !+e Code o& Comme"e deals wi!+ !+e spe"i&i" i,+!s a$d obli,a!io$s be!wee$ !+e eal s+ipow$e a$d !+e "+a!ee ob!ai$i$, i$ !+is "ase. =e"essaily !+e Co%! loo2s !o !+e =ew Ci#il Code !o s%pply !+e de&i"ie$"y.
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>TSC is liable !o Co$"ep"io$ %$de A!i"les 45 a$d 4K o& !+e =ew Ci#il Code. As !+e "+a!ee o lessee %$de !+e Co$!a"! o& A,eeme$! da!ed %$e *) 4'0< >TSC was "o$!a"!Bbo%$d !o e!%$ !+e !+i$, leased a$d i! was liable &o !+e de!eioa!io$ o loss o& !+e same. A,%s!i$ o$ !+e o!+e +a$d w+o was !+e s%bB"+a!ee o s%bBlessee o& LCTBosep+i$e is liable %$de A!i"le 454 o& !+e =ew Ci#il Code. Al!+o%,+ +e was $e#e pi#y !o !+e "o$!a"! be!wee$ >TSC a$d Co$"ep"io$ +e emai$ed bo%$d !o pese#e !+e "+a!eed #essel &o !+e la!!e. @espi!e +is $o$Bi$"l%sio$ i$ !+e "omplai$! o& Co$"ep"io$ i! was deemed ame$ded so as !o i$"l%de +im be"a%se despi!e o i$ !+e abse$"e o& !+a! &omali!y o& ame$di$, !+e "omplai$! !o i$"l%de +im +e s!ill +ad +is day i$ "o%! as +e was i$ &a"! impleaded as a !+idBpa!y de&e$da$! by +is ow$ so$ Rola$d 1 !+e #ey same peso$ w+o epese$!ed +im i$ !+e Co$!a"! o& A,eeme$! wi!+ Laa-abal.
I$ a$y "ase all !+ee rigon pe!i!io$es ae!orporation, liable %$de 44K) o&".!+e =ew Ci#il Agustin P. ela#o. orre v. he !ourt of Appeals, et al.7Philippine Shipyard et al.A!i"le v. !risosto(o !oncepcion, et al.,Code. ".R. #o. $'%%7".R. $'&'&, ;uly9on. $<, +$$ Commo$ "aie; bea"+ o& "o$!a"! o& "aia,e. T+ee e9is!ed a "o$!a"! o& "aia,e be!wee$ G P S as !+e ow$e a$d opea!o o& !+e A#is !a9i"ab a$d ose Ma"ial as !+e passe$,e o& said #e+i"le. As a "ommo$ "aie G P S is bo%$d !o "ay Dose Ma"ial sa&ely as &a as +%ma$ "ae a$d &oesi,+! "a$ po#ide %si$, !+e %!mos! dili,e$"e o& #ey "a%!io%s peso$s wi!+ d%e e,ad &o all !+e "i"%ms!a$"es. 8owe#e ose Ma"ial was $o! able !o ea"+ +is des!i$a!io$ sa&ely as +e died d%i$, !+e "o%se o& !+e !a#el. /I$ a "o$!a"! o& "aia,e i! is pes%med !+a! !+e "ommo$ "aie is a! &a%l! o is $e,li,e$! w+e$ a passe$,e dies o is i$%ed. I$ &a"! !+ee is e#e$ $o $eed &o !+e "o%! !o ma2e a$ e9pess &i$di$, o& &a%l! o $e,li,e$"e o$ !+e pa! o& !+e "ommo$ "aie. T+is s!a!%!oy pes%mp!io$ may o$ly be o#e"ome by e#ide$"e !+a! !+e "aie e9e"ised e9!aodi$ay dili,e$"e. U$&o!%$a!ely G P S miseably &ailed !o o#e"ome !+is pes%mp!io$. o!+ !+e !ial "o%! a$d !+e CA &o%$d !+a! !+e a""ide$! w+i"+ led !o ose Ma"ial?s dea!+ was d%e !o !+e e"2less di#i$, a$d ,oss $e,li,e$"e o& G P S? di#e >adilla !+eeby +oldi$, G P S liable !o !+e +eis o& ose Ma"ial &o bea"+ o& "o$!a"! o& "aia,e. T+a! !+e di#e was a"H%i!!ed i$ !+e "imi$al "ase &o e"2less imp%de$"e is imma!eial. A!i"le (4 o& !+e Ci#il Code po#ides vi5: W+e$ !+e "i#il a"!io$ is based o$ a$ obli,a!io$ $o! aisi$, &om !+e a"! o omissio$ "omplai$ed o& as a &elo$y s%"+ "i#il a"!io$ may po"eed i$depe$de$!ly o& !+e "imi$al po"eedi$,s a$d e,adless o& !+e es%l! o& !+e la!!e. I$ !+is "ase !+e a"!io$ &iled by !+e +eis is pimaily &o !+e e"o#ey o& dama,es aisi$, &om bea"+ o& "o$!a"! o& "aia,e alle,edly "ommi!!ed by G P S. Clealy i! is a$ i$depe$de$! "i#il a"!io$ aisi$, &om "o$!a"! w+i"+ is sepaa!e a$d dis!i$"! &om !+e "imi$al a"!io$ &o e"2less imp%de$"e es%l!i$, i$ +omi"ide &iled by !+e +eis a,ai$s! >adilla by easo$ o& !+e same i$"ide$!. 8e$"e e,adless o& >adilla?s a"H%i!!al o "o$#i"!io$ i$ said "imi$al "ase same +as $o beai$, i$ !+e esol%!io$ o& !+e pese$! "ase. 9eirs of ;ose /arcial . 3choa, na(ely: Ru)y B. 3choa, et al. v. " S ransport !orporation7" S ransport !orporation v. 9eirs of ;ose /arcial . 3choa, na(ely: Ru)y B. 3choa, et al., ".R. #o. $22$ ".R. #o. $2$+&, /arch -, +$$. Commo$ "aie; liabili!y. U$do%b!edly UTI is liable as a "ommo$ "aie. Commo$ "aies as a ,e$eal %le ae pes%med !o +a#e bee$ a! &a%l! o $e,li,e$! i& !+e ,oods !+ey !a$spo!ed de!eioa!ed o ,o! los! o des!oyed. T+a! is %$less !+ey po#e !+a! !+ey e9e"ised e9!aodi$ay dili,e$"e i$ !a$spo!i$, !+e ,oods. I$ ode !o a#oid espo$sibili!y &o a$y loss o dama,e !+ee&oe !+ey +a#e !+e b%de$ o& po#i$, !+a! !+ey obse#ed s%"+ dili,e$"e. Mee poo& o& deli#ey o& !+e ,oods i$ ,ood ode !o a "ommo$ "aie a$d o& !+ei ai#al i$ bad ode a! !+ei des!i$a!io$ "o$s!i!%!es a pima &a"ie "ase o& &a%l! o $e,li,e$"e a,ai$s! !+e "aie. I& $o adeH%a!e e9pla$a!io$ is ,i#e$ as !o +ow !+e de!eioa!io$ loss o des!%"!io$ o& !+e ,oods +appe$ed !+e !a$spo!e s+all be +eld espo$sible. 4ns@orth ransportation International MPhils.N, Inc. vs. !ourt of Appeals and Pioneer Insurance and Surety !orporation, ".R. #o. $''+&, ;uly +', +$ @ama,es; #i"aio%s liabili!y. U$de A!i"le *40) o& !+e =ew Ci#il Code w+e$ a$ i$%y is "a%sed by !+e $e,li,e$"e o& !+e employee !+ee i$s!a$!ly aises a pes%mp!io$ o& law !+a! !+ee was $e,li,e$"e o$ !+e pa! o& !+e mas!e o employe ei!+e i$ !+e sele"!io$ o& !+e se#a$! o employee o i$ s%pe#isio$ o#e +im a&!e sele"!io$ o bo!+. T+e liabili!y o& !+e employe %$de A!i"le *40) is die"! a$d immedia!e; i! is $o! "o$di!io$ed %po$ pio e"o%se a,ai$s! !+e $e,li,e$! employee a$d a pio s+owi$, o& !+e i$sol#e$"y o& s%"+ employee. T+ee&oe i! is i$"%mbe$! %po$ !+e pi#a!e espo$de$!s 3i$ !+is "ase !+e pe!i!io$e6 !o po#e !+a! !+ey e9e"ised !+e dili,e$"e o& a ,ood &a!+e o& a &amily i$ !+e sele"!io$ a$d s%pe#isio$ o& !+ei employee. ilipinas Synthetic i)er !orporation v. ilfredo e Los Santos, et al., ".R. #o. $&+<<. /arch $', +$$
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W+e$ a$ i$%y is "a%sed by !+e $e,li,e$"e o& a$ employee a le,al pes%mp!io$ i$s!a$!ly aises !+a! !+e employe was $e,li,e$!. T+is pes%mp!io$ may be eb%!!ed o$ly by a "lea s+owi$, o$ !+e pa! o& !+e employe !+a! +e e9e"ised !+e dili,e$"e o& a ,ood &a!+e o& a &amily i$ !+e sele"!io$ a$d s%pe#isio$ o& +is employee. I& !+e employe s%""ess&%lly o#e"omes !+e le,al pes%mp!io$ o& $e,li,e$"e +e is elie#ed o& liabili!y. I$ o!+e wods !+e b%de$ o& poo& is o$ !+e employe. T+e espo$sibili!y o& !wo o moe peso$s w+o ae liable &o H%asiBdeli"! is soliday. T+e "i#il liabili!y o& !+e employe &o !+e $e,li,e$! a"!s o& +is employee is also pimay a$d die"! owi$, !o +is ow$ $e,li,e$"e i$ sele"!i$, a$d s%pe#isi$, +is employee. T+e "i#il liabili!y o& !+e employe a!!a"+es e#e$ i& !+e employe is $o! i$side !+e #e+i"le a! !+e !ime o& !+e "ollisio$. I$ !+e sele"!io$ o& pospe"!i#e employees employes ae eH%ied !o e9ami$e !+em as !o !+ei H%ali&i"a!io$s e9peie$"e a$d se#i"e e"ods. O$ !+e o!+e +a$d wi!+ espe"! !o !+e s%pe#isio$ o& employees employes s+o%ld &om%la!e s!a$dad opea!i$, po"ed%es mo$i!o !+e !+eiiss%e impleme$!a!io$ a$d impose dis"ipli$ay meas%es &o bea"+es !+eeo&.do"%me$!ay To es!ablis+ !+ese &a"!os i$ a !ial i$#ol#i$, o& #i"aio%s liabili!y employes m%s! s%bmi! "o$"e!e poo& i$"l%di$, e#ide$"e. he 9eirs of Redentor !o(pleto and ?lpidio A)iad vs. Sgt. A(ando !. Al)ayda, ;r., ".R. #o. $2++, ;uly ', +$. @ama,es; #i"aio%s liabili!y; employe?s de,ee o& dili,e$"e. I! is "lea !+a! !+e employe o& a $e,li,e$! employee is liable &o !+e dama,es "a%sed by !+e la!!e. W+e$ a$ i$%y is "a%sed by !+e $e,li,e$"e o& a$ employee !+ee i$s!a$!ly aises a pes%mp!io$ o& !+e law !+a! !+ee was $e,li,e$"e o$ !+e pa! o& !+e employe ei!+e i$ !+e sele"!io$ o& +is employee o i$ !+e s%pe#isio$ o#e +im a&!e s%"+ sele"!io$. 8owe#e !+e pes%mp!io$ may be o#e"ome by a "lea s+owi$, o$ !+e pa! o& !+e employe !+a! +e +as e9e"ised !+e "ae a$d dili,e$"e o& a ,ood &a!+e o& a &amily i$ !+e sele"!io$ a$d s%pe#isio$ o& +is employee. I$ o!+e wods !+e b%de$ o& poo& is o$ !+e employe. T+%s pe!i!io$es m%s! po#e !wo !+i$,s: &is! !+a! !+ey +ad e9e"ised d%e dili,e$"e i$ !+e sele"!io$ o& pe!i!io$e AQal%"as a$d se"o$d !+a! a&!e +ii$, AQal%"as pe!i!io$es +ad e9e"ised d%e dili,e$"e i$ s%pe#isi$, +im. 3/! !arriers, Inc. and ;erry AKalucas y Pitalino vs. Spouses Ro)erto !. #a)ua and Rosario . #a)ua, ".R. #o. $*%-2*, ;uly +, +$. @ama,es; H%asiBdeli"!. U$li2e !+e s%bsidiay liabili!y o& !+e employe %$de A!i"le 4)( o& !+e Re#ised >e$al Code !+e liabili!y o& !+e employe o a$y peso$ &o !+a! ma!!e %$de A!i"le *4K o& !+e Ci#il Code is pimay a$d die"! based o$ a peso$?s ow$ $e,li,e$"e. T+is "ase i$#ol#es !+e a""ide$!al dis"+a,e o& a &ieam i$side a ,%$ s!oe. A +i,+e de,ee o& "ae is eH%ied o& someo$e w+o +as i$ +is possessio$ o %$de +is "o$!ol a$ i$s!%me$!ali!y e9!emely da$,eo%s i$ "+aa"!e s%"+ as da$,eo%s weapo$s o s%bs!a$"es. S%"+ peso$ i$ possessio$ o "o$!ol o& da$,eo%s i$s!%me$!ali!ies +as !+e d%!y !o !a2e e9"ep!io$al pe"a%!io$s !o pe#e$! a$y i$%y bei$, do$e !+eeby. U$li2e !+e odi$ay a&&ais o& li&e o b%si$ess w+i"+ i$#ol#e li!!le o $o is2 a b%si$ess deali$, wi!+ da$,eo%s weapo$s eH%ies !+e e9e"ise o& a +i,+e de,ee o& "ae. As a ,%$ s!oe ow$e espo$de$! is pes%med !o be 2$owled,eable abo%! &ieams sa&e!y a$d s+o%ld +a#e 2$ow$ $e#e !o 2eep a loaded weapo$ i$ +is s!oe !o a#oid %$easo$able is2 o& +am o i$%y !o o!+es. Respo$de$! +as !+e d%!y !o e$s%e !+a! all !+e ,%$s i$ +is s!oe ae $o! loaded. Fieams s+o%ld be s!oed %$loaded a$d sepaa!e &om amm%$i!io$ w+e$ !+e &ieams ae $o! $eeded &o eadyBa""ess de&e$si#e %se. Wi!+ moe easo$ ,%$s a""ep!ed by !+e s!oe &o epai s+o%ld $o! be loaded pe"isely be"a%se !+ey ae de&e"!i#e a$d may "a%se a$ a""ide$!al dis"+a,e s%"+ as w+a! +appe$ed i$ !+is "ase. Respo$de$! was "lealy $e,li,e$! w+e$ +e a""ep!ed !+e ,%$ &o epai a$d pla"ed i! i$side !+e dawe wi!+o%! e$s%i$, &is! !+a! i! was $o! loaded. I$ !+e &is! pla"e !+e de&e"!i#e ,%$ s+o%ld +a#e bee$ s!oed i$ a #a%l!. e&oe a""ep!i$, !+e de&e"!i#e ,%$ &o epai espo$de$! s+o%ld +a#e made s%e !+a! i! was $o! loaded !o pe#e$! a$y %$!owad a""ide$!. I$deed espo$de$! s+o%ld $e#e a""ep! a &ieam &om a$o!+e peso$ %$!il !+e "yli$de o a"!io$ is ope$ a$d +e +as peso$ally "+e"2ed !+a! !+e weapo$ is "omple!ely %$loaded. Fo &aili$, !o e$s%e !+a! !+e ,%$ was $o! loaded espo$de$! +imsel& was $e,li,e$!. F%!+emoe i! was $o! s+ow$ i$ !+is "ase w+e!+e espo$de$! +ad a Li"e$se !o Repai w+i"+ a%!+oi-es +im !o epai de&e"!i#e &ieams !o es!oe i!s oi,i$al "omposi!io$ o e$+a$"e o %p,ade &ieams. Clealy espo$de$! did $o! e9e"ise !+e de,ee o& "ae a$d dili,e$"e eH%ied o& a ,ood &a!+e o& a &amily m%"+ less !+e de,ee o& "ae eH%ied o& someo$e deali$, wi!+ da$,eo%s weapo$s as wo%ld e9emp! +im &om liabili!y i$ !+is "ase. Alfredo P. Pacis and !leopatra . Pacis vs. ;ero(e ;ovanne /orales G.R. =o. 4'<K Feb%ay *5 *)4). @ama,es; H%asiBdeli"!. W+e$e#e a$ employee?s $e,li,e$"e "a%ses dama,e o i$%y !o a$o!+e !+ee i$s!a$!ly aises a pes%mp!io$ !+a! !+e employe &ailed !o e9e"ise !+e d%e dili,e$"e o& a ,ood &a!+e o& !+e &amily i$ !+e sele"!io$ o s%pe#isio$ o& i!s employees. To a#oid liabili!y &o a quasi8delict "ommi!!ed by +is employee a$ employe m%s! o#e"ome !+e pes%mp!io$ by pese$!i$, "o$#i$"i$, poo& !+a! +e e9e"ised !+e "ae a$d dili,e$"e o& a ,ood &a!+e o& a &amily i$ !+e sele"!io$ a$d s%pe#isio$ o& +is employee. T+e Co%! %p+olds !+e &i$di$, o& !+e !ial "o%! a$d !+e Co%! o& Appeals !+a! pe!i!io$e is liable !o espo$de$! si$"e i! &ailed !o e9e"ise !+e dili,e$"e o& a ,ood &a!+e o& !+e &amily i$ !+e sele"!io$ a$d s%pe#isio$ o& i!s b%s di#e Ma,ai!o A#ila &o +a#i$, &ailed !o s%&&i"ie$!ly i$"%l"a!e i$ +im dis"ipli$e a$d "oe"! be+a#io o$ !+e oad. I$deed
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"ompe$sa!io$ o&&ei$, !+ei se#i"es !o !+e p%bli". A co((on carrier is dis!i$,%is+ed &om a private carrier w+eei$ !+e "aia,e is ,e$eally %$de!a2e$ by spe"ial a,eeme$! a$d i! does $o! +old i!sel& o%! !o "ay ,oods &o !+e ,e$eal p%bli". T+e dis!i$"!io$ is si,$i&i"a$! i$ !+e se$se !+a! !+e i,+!s a$d obli,a!io$s o& !+e pa!ies !o a "o$!a"! o& pi#a!e "aia,e ae ,o#e$ed pi$"ipally by !+ei s!ip%la!io$s $o! by !+e law o$ "ommo$ "aies. Loadmas!es a$d Glodel bei$, bo!+ "ommo$ "aies ae ma$da!ed &om !+e $a!%e o& !+ei b%si$ess a$d &o easo$s o& p%bli" poli"y !o obse#e !+e e9!aodi$ay dili,e$"e i$ !+e #i,ila$"e o#e !+e ,oods !a$spo!ed by !+em a""odi$, !o all !+e "i"%ms!a$"es o& s%"+ "ase as eH%ied by A!i"le 4K(( o& !+e Ci#il Code. W+e$ !+e Co%! spea2s o& e9!aodi$ay dili,e$"e i! is !+a! e9!eme meas%e o& "ae a$d "a%!io$ w+i"+ peso$s o& %$%s%al p%de$"e a$d "i"%mspe"!io$ obse#e &o se"%i$, a$d pese#i$, !+ei ow$ pope!y o i,+!s. T+is e9a"!i$, s!a$dad imposed o$ "ommo$ "aies i$ a "o$!a"! o& "aia,e o& ,oods is i$!e$ded !o !il! !+e s"ales i$ &a#o o& !+e s+ippe w+o is a! !+e me"y o& !+e "ommo$ "aie o$"e !+e ,oods +a#e bee$ lod,ed &o s+ipme$!. T+%s i$ "ase o&o&loss ,oods !+e "ommo$ "aie is pes%med !o!+a! +a#e!+e bee$ a! &a%l! o !o+as +a#e a"!ed $e,li,e$!ly. T+is pes%mp!io$ &a%l!o&o!+e $e,li,e$"e +owe#e may be eb%!!ed by poo& "ommo$ "aie obse#ed e9!aodi$ay dili,e$"e o#e !+e ,oods. Wi!+ espe"! !o !+e !ime &ame o& !+is e9!aodi$ay espo$sibili!y !+e Ci#il Code po#ides !+a! !+e e9e"ise o& e9!aodi$ay dili,e$"e las!s &om !+e !ime !+e ,oods ae %$"o$di!io$ally pla"ed i$ !+e possessio$ o& a$d e"ei#ed by !+e "aie &o !a$spo!a!io$ %$!il !+e same ae deli#eed a"!%ally o "o$s!%"!i#ely by !+e "aie !o !+e "o$si,$ee o !o !+e peso$ w+o +as a i,+! !o e"ei#e !+em. Load(asters !usto(s Services, Inc. vs. "lodel Brokerage !orporation and R B Insurance !orporation ; ".R. #o. $2-**', ;anuary $, +$$. @ama,es; $e,li,e$"e. =e,li,e$"e is de&i$ed as /!+e omissio$ !o do some!+i$, w+i"+ a easo$able ma$ ,%ided %po$ !+ose "o$sidea!io$s w+i"+ odi$aily e,%la!e !+e "o$d%"! o& +%ma$ a&&ais wo%ld do o !+e doi$, o& some!+i$, w+i"+ a p%de$! ma$ a$d easo$able ma$ "o%ld $o! do.7 As a "o$seH%e$"e o& i!s $e,li,e$"e FETC m%s! be +eld liable &o dama,es p%s%a$! !o A!i"le *4K o& !+e Ci#il Code w+i"+ s!a!es /w+oe#e by a"! o omissio$ "a%ses dama,e !o a$o!+e !+ee bei$, &a%l! o $e,li,e$"e is obli,ed !o pay &o !+e dama,e do$e.7 I$disp%!ably +ad !+e i$s%a$"e pemi%m bee$ paid !+o%,+ !+e a%!oma!i" debi! aa$,eme$! wi!+ FETC Ma9ili!e?s &ie loss "laim wo%ld +a#e bee$ appo#ed. 8e$"e Ma9ili!e s%&&eed dama,e !o !+e e9!e$! o& !+e &a"e #al%e o& !+e i$s%a$"e poli"y o !+e s%m o& >*.4 millio$. ;ose /arques, et al. vs. ar ?ast Bank and rust !o(pany, et
al. 7 ar ?ast Ban and rust !o(pany, et al. vs. ;ose /arques, et al.> ".R. #o. $2$<2-7".R. #o. $2$*$-, ;anuary $, +$$ . @ama,es; soliday liabili!y. T+e S%peme Co%! &o%$d !+a! AH%i$as S"+ool was $o! solidaily liable &o a"!io$s o& peso$ 3Yamyami$6 w+o was $o! i!s employee. T+e Co%! +as "o$sis!e$!ly applied !+e /&o%B&old !es!7 !o de!emi$e !+e e9is!e$"e o& a$ employeBemployee ela!io$s+ip: !+e employe 3a6 sele"!s a$d e$,a,es !+e employee; 3b6 pays +is wa,es; 3"6 +as powe !o dismiss +im; a$d 3d6 +as "o$!ol o#e +is wo2. O& !+ese !+e mos! "%"ial is !+e eleme$! o& "o$!ol. Co$!ol e&es !o !+e i,+! o& !+e employe w+e!+e a"!%ally e9e"ised o ese#ed !o "o$!ol !+e wo2 o& !+e employee as well as !+e mea$s a$d me!+ods by w+i"+ +e a""omplis+es !+e same. I$ !+is "ase !+e s"+ool die"!ess !es!i&ied !+a! AH%i$as +ad a$ a,eeme$! wi!+ a "o$,e,a!io$ o& sis!es %$de w+i"+ i$ ode !o &%l&ill i!s mi$is!y !+e "o$,e,a!io$ wo%ld se$d eli,io$ !ea"+es !o AH%i$as !o po#ide "a!e"+esis !o i!s s!%de$!s. AH%i$as i$sis!s !+a! i! was $o! !+e s"+ool b%! Yamyami$?s eli,io%s "o$,e,a!io$ !+a! "+ose +e &o !+e !as2 o& "a!e"+i-i$, !+e s"+ool?s ,ade !+ee s!%de$!s m%"+ li2e !+e way bis+ops desi,$a!e !+e "a!e"+is!s w+o wo%ld !ea"+ eli,io$ i$ p%bli" s"+ools. U$de !+e "i"%ms!a$"es i! was H%i!e e#ide$! !+a! AH%i$as did $o! +a#e "o$!ol o#e Yamyami$?s !ea"+i$, me!+ods. O& "o%se AH%i$as s!ill +ad !+e espo$sibili!y o& !a2i$, s!eps !o e$s%e !+a! o$ly H%ali&ied o%!side "a!e"+is!s ae allowed !o !ea"+ i!s yo%$, s!%de$!s. I$ !+is e,ad i! "a$$o! be said !+a! AH%i$as !oo2 $o s!eps !o a#oid !+e o""%e$"e o& impope "o$d%"! !owads !+e s!%de$!s by !+ei eli,io$ !ea"+e. I! +ad e#iewed !+e H%ali&i"a!io$s o& Yamyami$ de!emi$ed !+a! !+e "o$,e,a!io$ !+a! e"omme$ded +e was le,i!ima!e a$d i$ ode po#ided +e wi!+ !ea"+e oie$!a!io$ a$d a Fa"%l!y Ma$%al a$d e#iewed !+e "o%se o%!li$e o& !+e s%be"!s !+a! !+e !ea"+e wo%ld be +a$dli$,. Aquinas School vs. Sps. ;ose Inton and /a. 0ictoria S. Inton, etc., et al.; ".R. #o. $%*++, ;anuary +', +$$. %asiBdeli"!; soliday liabili!y. Loadmas!es? "laim !+a! i! was $e#e pi#y !o !+e "o$!a"! e$!eed i$!o by Glodel wi!+ !+e "o$si,$ee Col%mbia o RP I$s%a$"e as s%bo,ee is $o! a #alid de&e$se. I! may $o! +a#e a die"! "o$!a"!%al ela!io$ wi!+ Col%mbia b%! i! is liable &o !o! %$de !+e po#isio$s o& A!i"le *4K o& !+e Ci#il Code o$ H%asiBdeli"!s. >e!i$e$! is !+e %li$, e$%$"ia!ed i$ !+e "ase o& /indanao er(inal and Brokerage Service, Inc. v. PhoeniE Assurance !o(pany of #e@ =ork,7/c"ee !o., Inc.
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9999 Employes s+all be liable &o !+e dama,es "a%sed by !+ei employees a$d +o%se+old +elpes a"!i$, wi!+i$ !+e s"ope o& !+ei assi,$ed !as2s e#e$ !+o%,+ !+e &ome ae $o! e$,a,ed i$ a$y b%si$ess o i$d%s!y. I! is $o! disp%!ed !+a! !+e s%be"! "a,o was los! w+ile i$ !+e "%s!ody o& Loadmas!es w+ose employees 3!%"2 di#e a$d +elpe6 wee i$s!%me$!al i$ !+e +ia"2i$, o obbey o& !+e s+ipme$!. As employe Loadmas!es s+o%ld be made a$sweable &o !+e dama,es "a%sed by i!s employees w+o a"!ed wi!+i$ !+e s"ope o& !+ei assi,$ed !as2 o& deli#ei$, !+e ,oods sa&ely !o !+e wae+o%se. W+e$e#e a$ employee?s $e,li,e$"e "a%ses dama,e o i$%y !o a$o!+e !+ee i$s!a$!ly aises a pes%mp!io$ uris tantu( !+a! !+e employe &ailed !o e9e"ise diligentissi(i patris fa(ilies i$ !+e sele"!io$ Mculpa in eligiendoN o s%pe#isio$ Mculpa in vigilandoN o& i!s employees. To a#oid liabili!y &o a H%asiBdeli"! "ommi!!ed by i!s employee a$ employe m%s! o#e"ome !+e pes%mp!io$ by pese$!i$, "o$#i$"i$, poo& !+a! +e e9e"ised !+e "ae a$d dili,e$"e o& a ,ood &a!+e o& a &amily i$ !+e sele"!io$ a$d s%pe#isio$ o& +is employee. I$ !+is e,ad Loadmas!es &ailed. Load(asters !usto(s Services, Inc. vs. "lodel Brokerage !orporation and R B Insurance !orporation> ".R. #o. $2-**', ;anuary $, +$$. @ama,es; "a%sal "o$$e"!io$. I$ "o$!a"!s a$d H%asiB"o$!a"!s !+e dama,es &o w+i"+ !+e obli,o w+o a"!ed i$ ,ood &ai!+ is liable s+all be !+ose !+a! ae !+e $a!%al a$d pobable "o$seH%e$"es o& !+e bea"+ o& !+e obli,a!io$?. I$ !+is "ase !+e !ial "o%! a$d !+e Co%! o& appeals +eld AWIA liable &o !+e "os! o& 44 s+oi$, "ol%m$s. T+e S%peme Co%! also &o%$d !+a! AWIA +ad bea"+ed i!s d%!y o& "o$!a"! admi$is!a!io$. I! $o!ed !+a! +ad !+e e&&e"!s o$ !+e ma,i$al s!e$,!+ o& !+e "o$"e!e bee$ pomp!ly dis"losed !o TMV !+e "a"2s a$d de&le"!io$s "o%ld +a#e bee$ e"!i&ied by !+e "o$!a"!o be&oe i! was iss%ed i!s &i$al "e!i&i"a!io$ o& payme$! a$d !+e ow$e "o%ld +a#e bee$ spaed &om &%!+e e9pe$ses. T+ee is a "a%sal "o$$e"!io$ be!wee$ AWIA?s $e,li,e$"e a$d !+e e9pe$ses i$"%ed by TMV. T+e la!!e was "ompelled !o s+%!dow$ !+e pla$! d%i$, !+e wo2days i$ @e"embe !o epai !+e oo&. I$ !+e po"ess i! i$"%ed e9pe$ses &o !+e epais i$"l%di$, !+e salaies o& i!s wo2es w+o wee p%! o$ &o"ed lea#e &o w+i"+ i! "a$ as2 &o eimb%seme$! as a"!%al dama,es. Adrian ilson International Associates, Inc. vs. / Philippines, Inc., ".R. #o. $'+'%, ;uly +', +$. @ama,es; dili,e$"e; s!a$dad o& "ae o& ba$2s. W+ile i! is "o$"eded !+a! pe!i!io$e +ad !+e i,+! !o o&&se! !+e %$paid i$!ees!s d%e i! a,ai$s! !+e deposi!s o& espo$de$! !+e iss%e o& w+e!+e i! a"!ed %di"io%sly is a$ e$!iely di&&ee$! ma!!e. As b%si$ess a&&e"!ed wi!+ p%bli" i$!ees! a$d be"a%se o& !+e $a!%e o& !+ei &%$"!io$s ba$2s ae %$de obli,a!io$ !o !ea! !+e a""o%$!s o& !+ei deposi!os wi!+ me!i"%lo%s "ae always +a#i$, i$ mi$d !+e &id%"iay $a!%e o& !+ei ela!io$s+ip. T+is w+ole i$"ide$! wo%ld +a#e bee$ a#oided +ad pe!i!io$e ad+eed !o !+e s!a$dad o& dili,e$"e e9pe"!ed o& o$e e$,a,ed i$ !+e ba$2i$, b%si$ess. /etropolitan Bank and rust !o(pany vs. Larry /ariKas, ".R. #o. $2-$&, ;uly +', +$. @ama,es; $e,li,e$"e; de,ee o& "ae; mo!o #e+i"le #s. bi"y"le. I! is a %le i$ $e,li,e$"e s%i!s !+a! !+e plai$!i&& +as !+e b%de$ o& po#i$, by a pepo$dea$"e o& e#ide$"e !+e mo!ois!?s bea"+ i$ +is d%!y o& "ae owed !o !+e plai$!i&& !+a! !+e mo!ois! was $e,li,e$! i$ &aili$, !o e9e"ise !+e dili,e$"e eH%ied !o a#oid i$%y !o !+e plai$!i&& a$d !+a! s%"+ $e,li,e$"e was !+e po9ima!e "a%se o& !+e i$%y s%&&eed. A!i"le *4K o& !+e Ci#il Code po#ides !+a! w+oe#e by a"! o omissio$ "a%ses dama,e !o a$o!+e !+ee bei$, &a%l! o $e,li,e$"e is obli,ed !o pay &o !+e dama,e do$e. S%"+ &a%l! o $e,li,e$"e i& !+ee is $o pee9is!i$, "o$!a"!%al ela!io$ be!wee$ !+e pa!ies is "alled a H%asiBdeli"!. I$ !+is e,ad !+e H%es!io$ o& !+e mo!ois!?s $e,li,e$"e is a H%es!io$ o& &a"!.
I! was po#e$ a pepo$dea$"e e#ide$"e Comple!o &ailed e9e"iseS%"+ easo$able dili,e$"e i$ di#i$, !a9i"ab be"a%se +e wasbyo#eBspeedi$, a! !+eo&!ime +e +i!!+a! !+e bi"y"le idde$ by!oAlbayda. $e,li,e$"e was !+e sole a$d!+e po9ima!e "a%se o& !+e seio%s p+ysi"al i$%ies s%s!ai$ed by Albayda. Comple!o did $o! slow dow$ e#e$ w+e$ +e appoa"+ed !+e i$!ese"!io$ o& 0!+ a$d 44!+ S!ee!s o& A. I! was also po#e$ !+a! Albayda +ad !+e i,+! o& way "o$sidei$, !+a! +e ea"+ed !+e i$!ese"!io$ a+ead o& Comple!o. T+e bi"y"le o""%pies a le,al posi!io$ !+a! is a! leas! eH%al !o !+a! o& o!+e #e+i"les law&%lly o$ !+e +i,+way a$d i! is &o!i&ied by !+e &a"! !+a! %s%ally moe will be eH%ied o& a mo!ois! !+a$ a bi"y"lis! i$ dis"+a,i$, +is d%!y o& "ae !o !+e o!+e be"a%se o& !+e p+ysi"al ad#a$!a,es !+e a%!omobile +as o#e !+e bi"y"le.
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mo!o #e+i"le +as o#e !+e bi"y"le ma2e i! moe da$,eo%s !o !+e bi"y"lis! !+a$ #i"e #esa. he 9eirs of Redentor !o(pleto and ?lpidio A)iad vs. Sgt. A(ando !. Al)ayda, ;r., ".R. #o. $2++, ;uly ', +$. %asiBdeli"!; +%ma$ ela!io$s. T+e &ail%e o& espo$de$!s !o a"! wi!+ &ai$ess +o$es!y a$d ,ood &ai!+ i$ se"%i$, be!!e !ems &o !+e p%"+ase o& +i,+Bspeed "a!amaa$s &om AFFA !o !+e pe%di"e o& !+e pe!i!io$e as !+e d%ly appoi$!ed e9"l%si#e dis!ib%!o is pos"ibed by A!i"le 4' o& !+e Ci#il Code. W+e$ a i,+! is e9e"ised i$ a ma$$e w+i"+ does $o! "o$&om wi!+ !+e $oms e$s+i$ed i$ A!i"le 4' a$d es%l!s i$ dama,e !o a$o!+e a le,al wo$, is !+eeby "ommi!!ed &o w+i"+ !+e wo$,doe m%s! be espo$sible. T+e obe"! o& !+is a!i"le !+ee&oe is !o se! "e!ai$ s!a$dads w+i"+ m%s! be obse#ed $o! o$ly i$ !+e e9e"ise o& o$e?s i,+!s b%! also i$ !+e pe&oma$"e o& o$e?s d%!ies. T+ese s!a$dads ae !+e &ollowi$,: a"! wi!+ %s!i"e ,i#e e#eyo$e +is d%e a$d obse#e +o$es!y a$d ,ood &ai!+. I!s a$!i!+esis $e"essaily is a$y a"! e#i$"i$, bad &ai!+ o i$!e$! !o i$%e. I!s eleme$!s ae !+e &ollowi$,: 346 T+ee is a le,al i,+! o d%!y; 3*6 w+i"+ is e9e"ised i$ bad &ai!+; 3(6 &o !+e sole i$!e$! o& pe%di"i$, o i$%i$, a$o!+e. W+e$ A!i"le 4' is #iola!ed a$ a"!io$ &o dama,es is pope %$de A!i"les *) o *4 o& !+e Ci#il Code. A!i"le *4 e&es !o a"!s contra )onus (ores a$d +as !+e &ollowi$, eleme$!s: 346 T+ee is a$ a"! w+i"+ is le,al; 3*6 b%! w+i"+ is "o$!ay !o moals ,ood "%s!om p%bli" ode o p%bli" poli"y; a$d 3(6 i! is do$e wi!+ intent !o i$%e. A "ommo$ !+eme %$s !+o%,+ A!i"les 4' a$d *4 a$d !+a! is !+e a"! "omplai$ed o& m%s! be i$!e$!io$al. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG vs. /orti(er . !ordero7/orti(er . !ordero vs. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG, et al., ".R. #o. $'*2<7".R. #o, $'*2*2. /ay *, +$. %asiBdeli"!; !o! i$!e&ee$"e. W+ile i! is !%e !+a! a !+id peso$ "a$$o! possibly be s%ed &o bea"+ o& "o$!a"! be"a%se o$ly pa!ies "a$ bea"+ "o$!a"!%al po#isio$s a "o$!a"!i$, pa!y may s%e a !+id peso$ $o! &o bea"+ b%! &o i$d%"i$, a$o!+e !o "ommi! s%"+ bea"+. A!i"le 4(4< o& !+e Ci#il Code po#ides: /A$y !+id peso$ w+o i$d%"es a$o!+e !o #iola!e +is "o$!a"! s+all be liable &o dama,es !o !+e o!+e "o$!a"!i$, pa!y. / T+e eleme$!s o& !o! i$!e&ee$"e ae: 346 e9is!e$"e o& a #alid "o$!a"!; 3*6 2$owled,e o$ !+e pa! o& !+e !+id peso$ o& !+e e9is!e$"e o& a "o$!a"!; a$d 3(6 i$!e&ee$"e o& !+e !+id peso$ is wi!+o%! le,al %s!i&i"a!io$. I$ !+is "ase !+e pese$"e o& !+e &is! a$d se"o$d eleme$!s is $o! disp%!ed. As !o !+e !+id eleme$! !+e S%peme Co%! "i!ed i!s %li$, i$ So Ping Bun v. !ourt of Appeals !+a! $o!ed +ow a%!+oi!ies +a#e deba!ed o$ w+e!+e i$!e&ee$"e may be %s!i&ied w+ee !+e de&e$da$! a"!s &o !+e sole p%pose o& &%!+ei$, +is ow$ &i$a$"ial o e"o$omi" i$!ees!. O$e #iew is !+a! as a ,e$eal %le %s!i&i"a!io$ &o i$!e&ei$, wi!+ !+e b%si$ess ela!io$s o& a$o!+e e9is!s w+ee !+e a"!o?s mo!i#e is !o be$e&i! +imsel&. S%"+ %s!i&i"a!io$ does $o! e9is! w+ee +is sole mo!i#e is !o "a%se +am !o !+e o!+e. Added !o !+is some a%!+oi!ies belie#e !+a! i! is $o! $e"essay !+a! !+e i$!e&ee?s i$!ees! o%!wei,+ !+a! o& !+e pa!y w+ose i,+!s ae i$#aded a$d !+a! a$ i$di#id%al a"!s %$de a$ e"o$omi" i$!ees! !+a! is s%bs!a$!ial $o! meely de (ini(is s%"+ !+a! wo$,&%l a$d mali"io%s mo!i#es ae $e,a!i#ed &o +e a"!s i$ sel&Bpo!e"!io$. Moeo#e %s!i&i"a!io$ &o po!e"!i$, o$e?s &i$a$"ial posi!io$ s+o%ld $o! be made !o depe$d o$ a "ompaiso$ o& +is e"o$omi" i$!ees! i$ !+e s%be"! ma!!e wi!+ !+a! o& o!+es. I! is s%&&i"ie$! i& !+e impe!%s o& +is "o$d%"! lies i$ a pope b%si$ess i$!ees! a!+e !+a$ i$ wo$,&%l mo!i#es. T+e "o%! $o!ed !+a! as ealy as "ilchrist vs. !uddy i! +ad +eld !+a! w+ee !+ee was $o mali"e i$ !+e i$!e&ee$"e o& a "o$!a"! a$d !+e imp%lse be+i$d o$e?s "o$d%"! lies i$ a pope b%si$ess i$!ees! a!+e !+a$ i$ wo$,&%l mo!i#es a pa!y "a$$o! be a mali"io%s i$!e&ee. W+ee !+e alle,ed i$!e&ee is &i$a$"ially i$!ees!ed a$d s%"+ i$!ees! mo!i#a!es +is "o$d%"! i! "a$$o! be said !+a! +e is a$ o&&i"io%s o mali"io%s i$!emeddle. W+ile !+e "o%! does $o! e$"o%a,e !o! i$!e&ees see2i$, !+ei e"o$omi" i$!ees! !o i$!%de i$!o e9is!i$, "o$!a"!s a! !+e e9pe$se o& o!+es !+e "o$d%"! "omplai$ed m%s! !a$s"e$d !+e limi!s &obiddi$, a$ obli,a!oy awad &o dama,es i$ !+e abse$"e o& a$y mali"e. Mali"e "o$$o!es ill will o spi!e a$d spea2s $o! i$ espo$se !o d%!y. I! implies a$ i$!e$!io$ !o do %l!eio a$d %$%s!i&iable +am. Mali"e is bad &ai!+ o bad mo!i#e. T+e a"! o& !+e espo$de$!s i$ i$d%"i$, Robi$so$ a$d AFFA !o e$!e i$!o a$o!+e "o$!a"! die"!ly wi!+ ACG E9pess Li$e !o ob!ai$ lowe pi"e &o se"o$d #essel es%l!ed i$ AFFA?s o& i!sappoi$!me$! "o$!a"!%al obli,a!io$ !o dis!ib%!o. pay i$ &%ll !+eS%"+ "ommissio$ d%e !o a!+e pe!i!io$e a$d!+e %$"eemo$io%s !emi$a!io$ o& !+e bea"+ pe!i!io$e?s as e9"l%si#e a"! may $o! be deemed mali"io%s i& impelled by a pope b%si$ess i$!ees! a!+e !+a$ i$ wo$,&%l mo!i#es. T+e a!!e$da$! "i"%ms!a$"es +owe#e demo$s!a!ed !+a! espo$de$!s !a$s,essed !+e bo%$ds o& pemissible &i$a$"ial i$!ees! !o be$e&i! !+emsel#es a! !+e e9pe$se o& !+e pe!i!io$e. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG vs. /orti(er . !ordero7/orti(er . !ordero vs. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG, et al., ".R. #o. $'*2<7".R. #o, $'*2*2. /ay *, +$. Aas!e opea!o; liabili!y. T+e ela!io$s+ip be!wee$ !+e "o$si,$ee a$d !+e aas!e opea!o is a2i$ !o !+a! e9is!i$, be!wee$ !+e "o$si,$ee a$dJo !+e ow$e o& !+e s+ipped ,oods a$d !+e "ommo$ "aie o !+a! be!wee$ a deposi!o a$d a
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bo9es was dis"o#eed. 8e$"e !+e "omplai$! a,ai$s! bo!+ !+e aas!e opea!o a$d !+e "%s!oms bo2e. I$ a "laim &o loss &iled by !+e "o$si,$ee 3o !+e i$s%e6 !+e b%de$ o& poo& !o s+ow "omplia$"e wi!+ !+e obli,a!io$ !o deli#e !+e ,oods !o !+e appopia!e pa!y de#ol#es %po$ !+e aas!e opea!o. Si$"e !+e sa&e2eepi$, o& !+e ,oods is i!s espo$sibili!y i! m%s! po#e !+a! !+e losses wee $o! d%e !o i!s $e,li,e$"e o !o !+a! o& i!s employees. To po#e !+e e9e"ise o& dili,e$"e i$ +a$dli$, !+e s%be"! "a,oes pe!i!io$e m%s! do moe !+a$ meely s+ow !+e possibili!y !+a! some o!+e pa!y "o%ld be espo$sible &o !+e loss o !+e dama,e. I! m%s! po#e !+a! i! e9e"ised d%e "ae i$ !+e +a$dli$, !+eeo&. >e!i!io$e &ailed !o do !+is. I$s!ead i! i$sis!s !+a! i! be e9o$ea!ed &om liabili!y be"a%se !+e "%s!oms bo2e?s epese$!a!i#e e"ei#ed !+e s%be"! s+ipme$! i$ ,ood ode a$d "o$di!io$ wi!+o%! e9"ep!io$. T+e appella!e "o%!?s "o$"l%sio$ o$ !+is ma!!e is i$s!%"!i#e. T+e si,$a!%e o& !+e peso$Jbo2e epese$!a!i#e meely si,$i&ies !+a! said peso$ !+eeby &ees !+e ATI &om a$y liabili!y &o loss o dama,e !o !+e "a,o so wi!+daw$ w+ile !+e same was i$ !+e "%s!ody o& s%"+ epese$!a!i#e !o w+om !+e "a,o was eleased. I! does $o! &oe"lose a$y emedy o i,+! o& !+e "o$si,$ee !o po#e !+a! a$y loss o dama,e !o !+e s%be"! s+ipme$! o""%ed w+ile !+e same was %$de !+e "%s!ody "o$!ol a$d possessio$ o& !+e aas!e opea!o. Co$sidei$, !+a! bo!+ pe!i!io$e a$d . Reyes La-o wee $e,li,e$! i$ !+e pe&oma$"e o& !+ei d%!ies i$ !+e +a$dli$, s!oa,e a$d deli#ey o& !+e s%be"! s+ipme$! !o !+e "o$si,$ee es%l!i$, i$ !+e loss o& 4< bo9es o& pi$!ed al%mi$%m s+ee!s bo!+ s+all be solidaily liable &o s%"+ loss. Asian er(inals, Inc. vs. aehan ire and /arine Insurance !o., Ltd., ".R. #o. $2$$-*, e)ruary *, +$. Aas!e opea!o; liabili!y; e9!e$! o& liabili!y. T+e "o$!a"! wi!+ !+e aas!e opea!o po#ided &o a limi!a!io$ o$ e"o#ey &o dama,es. %! s%"+ limi!a!io$ does $o! apply i& !+e #al%e o& !+e "a,o s+ipme$! is "omm%$i"a!ed !o !+e aas!e opea!o be&oe !+e dis"+a,e o& !+e "a,oes. I! is %$disp%!ed !+a! A""ess I$!e$a!io$al %po$ ai#al o& !+e s+ipme$! de"laed !+e same &o !a9a!io$ p%poses as well as &o !+e assessme$! o& aas!e "+a,es a$d o!+e &ees. Fo !+e p%pose !+e i$#oi"e pa"2i$, lis! a$d o!+e s+ippi$, do"%me$!s wee pese$!ed !o !+e %ea% o& C%s!oms as well as !o pe!i!io$e &o !+e pope assessme$! o& !+e aas!e "+a,es a$d o!+e &ees. S%"+ ma$i&es!a!io$ sa!is&ies !+e "o$di!io$ o& de"laa!io$ o& !+e a"!%al i$#oi"es o& !+e #al%e o& !+e ,oods be&oe !+ei ai#al !o o#e"ome !+e limi!a!io$ o$ !+e liabili!y o& !+e aas!e opea!o. T+e$ !+e aas!e opea!o by easo$ o& !+e payme$! !o i! o& a "omme$s%a!e "+a,e based o$ !+e +i,+e de"laed #al%e o& !+e me"+a$dise "o%ld a$d s+o%ld !a2e e9!aodi$ay "ae o& !+e spe"ial o #al%able "a,o. W+a! wo%ld i$deed be %$&ai a$d abi!ay is !o +old !+e aas!e opea!o liable &o !+e &%ll #al%e o& !+e me"+a$dise a&!e !+e "o$si,$ee +as paid !+e aas!e "+a,es o$ly o$ a basis m%"+ lowe !+a$ !+e !%e #al%e o& !+e ,oods. W+a! is esse$!ial is 2$owled,e be&oe+a$d o& !+e e9!e$! o& !+e is2 !o be %$de!a2e$ by !+e aas!e opea!o as de!emi$ed by !+e #al%e o& !+e pope!y "ommi!!ed !o i!s "ae. T+is de&i$es i!s espo$sibili!y &o loss o& o o& dama,e !o s%"+ "a,o#al%e a$d o& as"e!ai$s !+e "ompe$sa!io$ "omme$s%a!e !o s%"+ is2 ass%med. 8a#i$, bee$ d%ly i$&omed !+e a"!%al i$#oi"e !+e me"+a$dise %$de i!s "%s!ody a$d +a#i$, e"ei#ed payme$! o& aas!e "+a,es based !+eeo$ pe!i!io$e "a$$o! !+ee&oe i$sis! o$ a limi!a!io$ o& i!s liabili!y %$de !+e "o$!a"! !o less !+a$ !+e #al%e o& ea"+ los! "a,o. T+e s!ip%la!io$ eH%ii$, !+e "o$si,$ee !o i$&om !+e aas!e opea!o a$d !o ,i#e ad#a$"e $o!i"e o& !+e a"!%al i$#oi"e #al%e o& !+e ,oods !o be p%! i$ i!s "%s!ody is adop!ed &o !+e p%pose o& de!emi$i$, i!s liabili!y !+a! i! may ob!ai$ "ompe$sa!io$ "omme$s%a!e !o !+e is2 i! ass%mes $o! &o !+e p%pose o& de!emi$i$, !+e de,ee o& "ae o dili,e$"e i! m%s! e9e"ise as a deposi!ay o wae+o%sema$. Asian er(inals, Inc. vs. aehan ire and /arine Insurance !o., Ltd., ".R. #o. $2$$-*, e)ruary *, +$. Commo$ "aie. See +eadi$, /Aas!e Opea!o7 a$d !+e "ase o& Asian er(inals, Inc. vs. aehan ire and /arine Insurance !o., Ltd. w+ee i! was obse#ed !+a! !+e ela!io$s+ip be!wee$ !+e "o$si,$ee a$d !+e aas!e opea!o is a2i$ !o !+a! e9is!i$, be!wee$ !+e "o$si,$ee a$dJo !+e ow$e o& !+e s+ipped ,oods a$d !+e "ommo$ "aie o !+a! be!wee$ a deposi!o a$d a wae+o%sema$. Co$!a"! o& "aia,e; dama,es. A$ e9ami$a!io$ o& !+e e#ide$"e pese$!ed by pe!i!io$e s+ows !+a! i! "o$sis!ed o$ly o& deposi!io$s o& i!s wi!$esses. I! +ad i$ i!s possessio$ a$d disposi!io$ pe!i$e$! do"%me$!s s%"+ as !+e &li,+! ma$i&es! a$d !+e pla$e?s a"!%al sea!i$, "apa"i!y a$d layo%! w+i"+ "o%ld +a#e "lealy e&%!ed espo$de$!s? "laims !+a! !+ee wee $o! e$o%,+ passe$,e sea!s a#ailable &o !+em. I! i$e9pli"ably &ailed !o o&&e e#e$ a si$,le pie"e o& do"%me$!ay e#ide$"e. T+e Co%! !+%s belie#es !+a! i& a! leas! !+e "i!ed do"%me$!ay e#ide$"e +ad bee$ pod%"ed i! wo%ld +a#e bee$ ad#ese !o pe!i!io$e?s "ase. Moeo#e pe!i!io$e &ailed !o sa!is&a"!oily e9plai$ w+y i! did $o! iss%e boadi$, passes !o espo$de$!s w+o wee "o$&imed passe$,es e#e$ a&!e !+ey +ad "+e"2edBi$ !+ei l%,,a,e !+ee +o%s ealie. T+a! espo$de$!s did $o! ese#e sea!s pio !o "+e"2i$,Bi$ did $o! e9"%se !+e $o$Biss%a$"e o& boadi$, passes. Fom Ca$s? &ollowi$, !es!imo$y i! is ,a!+eed !+a! espo$de$!s wee made !o wai! &o las!Bmi$%!e "a$"ella!io$s be&oe !+ey wee a""ommoda!ed o$!o !+e pla$e. T+is "o%pled wi!+ pe!i!io$e?s &ail%e !o iss%e espo$de$!s !+ei boadi$, passes a$d !+e ele#e$!+B+o% die"!i#e &o !+em !o emba2 ei$&o"es !+e impessio$ !+a! !+e &li,+! was o#eboo2ed. >e!i!io$e?s asse!io$ !+a! espo$de$!s disemba2ed &om !+e pla$e w+e$ !+ei eH%es! !o be sea!ed !o,e!+e was i,$oed does $o! impess. T+e &a"! !+a! !+e espo$de$!s s!ill boaded !+e pla$e !e$ mi$%!es pio !o !+e depa!%e !ime despi!e 2$owi$, !+a! !+ey wo%ld be sea!ed apa! s+ows !+ey wee willi$, !o
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$o! !+e$ !+e "aie ope$s i!sel& !o a s%i! &o a bea"+ o& "o$!a"! o& "aia,e. #orth@est Airlines, Inc. vs. Spouses ?d@ard ;. 9eshan and #eilia L. 9eshan, et al., G.R. #o. $2-$$2, e)ruary <, +$ . Medi"al malpa"!i"e. A$ i$!e,al pa! o& p+ysi"ia$?s o#eall obli,a!io$ !o pa!ie$! is !+e d%!y o& easo$able dis"los%e o& a#ailable "+oi"es wi!+ espe"! !o poposed !+eapy a$d o& da$,es i$+ee$!ly a$d po!e$!ially i$#ol#ed i$ ea"+. 8owe#e !+e p+ysi"ia$ is $o! obli,ed !o dis"%ss ela!i#ely mi$o is2s i$+ee$! i$ "ommo$ po"ed%es w+e$ i! is "ommo$ 2$owled,e !+a! s%"+ is2s i$+ee$! i$ po"ed%e o& #ey low i$"ide$"e. Ci!ed as e9"ep!io$s !o !+e %le !+a! !+e pa!ie$! s+o%ld $o! be de$ied !+e oppo!%$i!y !o wei,+ !+e is2s o& s%,ey o !ea!me$! ae eme,e$"y "ases w+ee i! is e#ide$! +e "a$$o! e#al%a!e da!a a$d w+ee !+e pa!ie$! is a "+ild o i$"ompe!e$!. T+e "o%! !+%s "o$"l%ded !+a! !+e pa!ie$!?s i,+! o& sel&Bde"isio$ "a$ o$ly be e&&e"!i#ely e9e"ised i& !+e pa!ie$! possesses adeH%a!e i$&oma!io$ !o e$able +im i$ ma2i$, a$ i$!elli,e$! "+oi"e. T+e s"ope o& !+e p+ysi"ia$?s "omm%$i"a!io$s !o !+e pa!ie$! !+e$ m%s! be meas%ed by !+e pa!ie$!?s $eed a$d !+a! $eed is w+a!e#e i$&oma!io$ ma!eial !o !+e de"isio$. T+e !es! !+ee&oe &o de!emi$i$, w+e!+e a po!e$!ial peil m%s! be di#%l,ed is i!s ma!eiali!y !ois!+e pa!ie$!?s de"isio$.
!o))s v. "rant ei!ea!ed !+e po$o%$"eme$! i$ !anter)ury v. Spence !+a! &o liabili!y o& !+e p+ysi"ia$ &o &ail%e !o i$&om pa!ie$! !+ee m%s! be "a%sal ela!io$s+ip be!wee$ p+ysi"ia$?s &ail%e !o i$&om a$d !+e i$%y !o pa!ie$! a$d s%"+ "o$$e"!io$ aises o$ly i& i! is es!ablis+ed !+a! +ad e#ela!io$ bee$ made "o$se$! !o !ea!me$! wo%ld $o! +a#e bee$ ,i#e$. T+ee ae &o% esse$!ial eleme$!s a plai$!i&& m%s! po#e i$ a malpa"!i"e a"!io$ based %po$ !+e do"!i$e o& i$&omed "o$se$!: /346 !+e p+ysi"ia$ +ad a d%!y !o dis"lose ma!eial is2s; 3*6 +e &ailed !o dis"lose o i$adeH%a!ely dis"losed !+ose is2s; 3(6 as a die"! a$d po9ima!e es%l! o& !+e &ail%e !o dis"lose !+e pa!ie$! "o$se$!ed !o !ea!me$! s+e o!+ewise wo%ld $o! +a#e "o$se$!ed !o; a$d 3<6 plai$!i&& was i$%ed by !+e poposed !ea!me$!.7 T+e ,a#ame$ i$ a$ i$&omed "o$se$! "ase eH%ies !+e plai$!i&& !o /poi$! !o si,$i&i"a$! %$dis"losed i$&oma!io$ ela!i$, !o !+e !ea!me$! w+i"+ wo%ld +a#e al!eed +e de"isio$ !o %$de,o i!. T+e eleme$! o& e!+i"al d%!y !o dis"lose ma!eial is2s i$ !+e poposed medi"al !ea!me$! "a$$o! !+%s be ed%"ed !o o$e simplis!i" &om%la appli"able i$ all i$s!a$"es. F%!+e i$ a medi"al malpa"!i"e a"!io$ based o$ la"2 o& i$&omed "o$se$! /!+e plai$!i&& m%s! po#e bo!+ !+e d%!y a$d !+e bea"+ o& !+a! d%!y !+o%,+ e9pe! !es!imo$y. r. Ru)i Li vs. Spouses Reynaldo and Lina
Soli(an as parents7heirs of deceased Angelica Soli(an, G.R. =o. 45*K'. %$e K *)44 Copoa!e espo$sibili!y; liabili!y; $e,li,e$"e; dama,es. T+e Co%! $o!es !+a! >SI made !+e &ollowi$, admissio$ i$ i!s Mo!io$ &o Re"o$sidea!io$ />SI is $o! liable &o @. Ampil?s a"!s d%i$, !+e opea!io$. Co$sidei$, &%!+e !+a! @. Ampil was peso$ally e$,a,ed as a do"!o by Ms. A,a$a i! is i$"%mbe$! %po$ @. Ampil as /Cap!ai$ o& !+e S+ip7 a$d as !+e A,a$a?s do"!o !o ad#ise +e o$ w+a! !o do wi!+ +e si!%a!io$ #isBaB#is !+e !wo missi$, ,a%-es. I$ addi!io$ !o $o!i$, !+e missi$, ,a%-es e,%la "+e"2B%ps wee made a$d $o si,$s o& "ompli"a!io$s wee e9+ibi!ed d%i$, +e s!ay a! !+e +ospi!al w+i"+ "o%ld +a#e ale!ed pe!i!io$e >SI?s +ospi!al !o e$de a$d po#ide pos!Bopea!io$ se#i"es !o a$d !ead o$ @. Ampil?s ole as !+e do"!o o& Ms. A,a$a. T+e abse$"e o& $e,li,e$"e o& >SI &om !+e pa!ie$!?s admissio$ %p !o +e dis"+a,e is bo$e by !+e &i$di$, o& &a"!s i$ !+is "ase. Li2ewise e#ide$! !+ee&om is !+e abse$"e o& a$y "omplai$! &om Ms. A,a$a a&!e +e dis"+a,e &om !+e +ospi!al w+i"+ +ad s+e bo%,+! !o !+e +ospi!al?s a!!e$!io$ "o%ld +a#e ale!ed pe!i!io$e >SI !o a"! a""odi$,ly a$d bi$, !+e ma!!e !o @. Ampil?s a!!e$!io$. %! !+is was $o! !+e "ase. Ms. A,a$a "omplai$ed O=LY !o @s. Ampil a$d F%e$!es $o! !+e +ospi!al. 8ow !+e$ "o%ld >SI possibly do some!+i$, !o &i9 !+e $e,li,e$"e "ommi!!ed by @. Ampil w+e$ i! was $o! i$&omed abo%! i! a! all.G >SI ei!ea!ed i!s admissio$ w+e$ i! s!a!ed !+a! +ad =a!i#idad A,a$a /i$&omed !+e +ospi!al o& +e dis"om&o! a$d pai$ !+e +ospi!al wo%ld +a#e bee$ obli,ed !o a"! o$ i!.7 T+is is a %di"ial admissio$ by >SI !+a! w+ile i! +ad $o powe !o "o$!ol !+e mea$s o me!+od by w+i"+ @. Ampil "o$d%"!ed !+e s%,ey o$ =a!i#idad A,a$a i! +ad !+e powe !o e#iew o "a%se !+e e#iew o& w+a! may +a#e ie,%laly !a$spied wi!+i$ i!s walls s!i"!ly &o !+e p%pose o& de!emi$i$, w+e!+e some &om o& $e,li,e$"e may +a#e a!!e$ded a$y po"ed%e do$e i$side i!s pemises wi!+ !+e %l!ima!e e$d o& po!e"!i$, i!s pa!ie$!s. Se"o$d i! is a %di"ial admissio$ !+a! by #i!%e o& !+e $a!%e o& i!s b%si$ess as well as i!s pomi$e$"e i$ !+e +ospi!al i$d%s!y i! ass%med a d%!y !o /!ead o$7 !+e /"ap!ai$ o& !+e s+ip7 ole o& a$y do"!o e$dei$, se#i"es wi!+i$ i!s pemises &o !+e p%pose o& e$s%i$, !+e sa&e!y o& !+e pa!ie$!s a#aili$, !+emsel#es o& i!s se#i"es a$d &a"ili!ies. T+id by s%"+ admissio$ >SI de&i$ed !+e s!a$dads o& i!s "opoa!e "o$d%"! %$de !+e "i"%ms!a$"es o& !+is "ase spe"i&i"ally: 3a6 !+a! i! +ad a "opoa!e d%!y !o =a!i#idad e#e$ a&!e +e opea!io$ !o e$s%e +e sa&e!y as a pa!ie$!; 3b6 !+a! i!s "opoa!e d%!y was $o! limi!ed !o +a#i$, i!s $%si$, s!a&& $o!e o e"od !+e !wo missi$, ,a%-es a$d 3"6 !+a! i!s "opoa!e d%!y e9!e$ded !o de!emi$i$, @. Ampil?s ole i$ i! bi$,i$, !+e ma!!e !o +is a!!e$!io$ a$d "oe"!i$, +is $e,li,e$"e. A$d &i$ally by s%"+ admissio$ >SI baed i!sel& &om a,%i$, i$ i!s se"o$d mo!io$ &o e"o$sidea!io$ !+a! !+e "o$"e ! o& "o oa!e es o$sibili! was $o! e! i$ e9is!e$"e a! !+e !ime =a!i#idad %$dewe$! !ea!me$!; a$d !+a! i& i! +ad a$
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abo%! !+e missi$, ,a%-es b%! @. Ampil ass%ed !+em !+a! +e wo%ld peso$ally $o!i&y !+e pa!ie$! abo%! i!. F%!+emoe >SI "laimed !+a! !+ee was $o easo$ &o i! !o a"! o$ !+e epo! o$ !+e !wo missi$, ,a%-es be"a%se =a!i#idad A,a$a s+owed $o si,$s o& "ompli"a!io$s. S+e did $o! e#e$ i$&om !+e +ospi!al abo%! +e dis"om&o!. T+e e9"%ses po&&eed by >SI ae !o!ally %$a""ep!able. To be,i$ wi!+ >SI "o%ld $o! simply wa#e o&& !+e poblem a$d $o$"+ala$!ly dele,a!e !o @. Ampil !+e d%!y !o e#iew w+a! !a$spied d%i$, !+e opea!io$. T+e p%pose o& s%"+ e#iew wo%ld +a#e bee$ !o pi$poi$! w+e$ +ow a$d by w+om !wo s%,i"al ,a%-es wee mislaid so !+a! $e"essay emedial meas%es "o%ld be !a2e$ !o a#e! a$y eopady !o =a!i#idad?s e"o#ey. Ce!ai$ly >SI "o%ld $o! +a#e e9pe"!ed !+a! p%pose !o be a"+ie#ed by meely +opi$, !+a! !+e peso$ li2ely !o +a#e mislaid !+e ,a%-es mi,+! be able !o e!a"e +is ow$ s!eps. y i!s ow$ s!a$dad o& "opoa!e "o$d%"! >SI?s d%!y !o i$i!ia!e !+e e#iew was $o$Bdele,able. W+ile @. Ampil may +a#e +ad !+e pimay espo$sibili!y o& $o!i&yi$, =a!i#idad abo%! !+e missi$, ,a%-es >SI imposed %po$ i!sel& !+e sepaa!e a$d i$depe$de$! espo$sibili!y o& i$i!ia!i$, !+e i$H%iy i$!o !+e missi$, ,a%-es. T+e p%pose o& !+e &is! wo%ld +a#e bee$ !o appise =a!i#idad o& w+a! !a$spied d%i$, +e s%,ey w+ile !+e p%pose o& !+e se"o$d wo%ld +a#e bee$ !o pi$poi$! a$y lapse i$ po"ed%e !+a! led !o !+e ,a%-e "o%$! dis"epa$"y so as !o pe#e$! a e"%e$"e !+eeo& a$d !o de!emi$e "oe"!i#e meas%es !+a! wo%ld e$s%e !+e sa&e!y o& =a!i#idad. T+a! @. Ampil $e,li,e$!ly &ailed !o $o!i&y =a!i#idad did $o! elease >SI &om i!s sel&Bimposed sepaa!e espo$sibili!y. Coollay !o i!s $o$Bdele,able %$de!a2i$, !o e#iew po!e$!ial i$"ide$!s o& $e,li,e$"e "ommi!!ed wi!+i$ i!s pemises >SI +ad !+e d%!y !o !a2e $o!i"e o& medi"al e"ods pepaed by i!s ow$ s!a&& a$d s%bmi!!ed !o i!s "%s!ody espe"ially w+e$ !+ese bea eama2s o& a s%,ey ,o$e awy. T+%s !+e e"od !a2e$ d%i$, !+e opea!io$ o& =a!i#idad w+i"+ epo!ed a ,a%-e "o%$! dis"epa$"y s+o%ld +a#e ,i#e$ >SI s%&&i"ie$! easo$ !o i$i!ia!e a e#iew. I! s+o%ld $o! +a#e wai!ed &o =a!i#idad !o "omplai$. As i! +appe$ed >SI !oo2 $o +eed o& !+e e"od o& opea!io$ a$d "o$seH%e$!ly did $o! i$i!ia!e a e#iew o& w+a! !a$spied d%i$, =a!i#idad?s opea!io$. Ra!+e i! s+i2ed i!s espo$sibili!y a$d passed i! o$ !o o!+es 1 !o @. Ampil w+om i! e9pe"!ed !o i$&om =a!i#idad a$d !o =a!i#idad +esel& !o "omplai$ be&oe i! !oo2 a$y mea$i$,&%l s!ep. y i!s i$a"!io$ !+ee&oe >SI &ailed i!s ow$ s!a$dad o& +ospi!al "ae. I! "ommi!!ed "opoa!e $e,li,e$"e. I! s+o%ld be bo$e i$ mi$d !+a! !+e "opoa!e $e,li,e$"e as"ibed !o >SI is di&&ee$! &om !+e medi"al $e,li,e$"e a!!ib%!ed !o @. Ampil. T+e d%!ies o& !+e +ospi!al ae dis!i$"! &om !+ose o& !+e do"!oB"o$s%l!a$! pa"!i"i$, wi!+i$ i!s pemises i$ ela!io$ !o !+e pa!ie$!; +e$"e !+e &ail%e o& >SI !o &%l&ill i!s d%!ies as a +ospi!al "opoa!io$ ,a#e ise !o a die"! liabili!y !o !+e A,a$as dis!i$"! &om !+a! o& @. Ampil. All !+is $o!wi!+s!a$di$, we ma2e i! "lea !+a! >SI?s +ospi!al liabili!y based o$ os!e$sible a,e$"y a$d "opoa!e $e,li,e$"e applies o$ly !o !+is "ase pro hac vice. I! is $o! i$!e$ded !o se! a pe"ede$! a$d s+o%ld $o! se#e as a basis !o +old +ospi!als liable &o e#ey &om o& $e,li,e$"e o& !+ei do"!osB"o$s%l!a$!s %$de a$y a$d all "i"%ms!a$"es. T+e %li$, is %$iH%e !o !+is "ase &o !+e liabili!y o& >SI aose &om a$ implied a,e$"y wi!+ @. Ampil a$d a$ admi!!ed "opoa!e d%!y !o =a!i#idad. O!+e "i"%ms!a$"es pe"%lia !o !+is "ase waa$! !+is %li$, $o! !+e leas! o& w+i"+ bei$, !+a! !+e a,o$y wo%,+! %po$ !+e A,a$as +as ,o$e o$ &o * lo$, yeas wi!+ =a!i#idad "omi$, !o !+e e$d o& +e days a"2ed i$ pai$ a$d a,o$y. S%"+ we!"+ed$ess "o%ld +a#e bee$ a#oided +ad >SI simply do$e w+a! was lo,i"al: +eed !+e epo! o& a ,%a-e "o%$! dis"epa$"y i$i!ia!e a e#iew o& w+a! we$! wo$, a$d !a2e "oe"!i#e meas%es !o e$s%e !+e sa&e!y o& =a!i#ad. Ra!+e &o * yeas >SI +emmed a$d +awed a! e#ey !%$ disow$i$, a$y s%"+ espo$sibili!y !o i!s pa!ie$!. Mea$w+ile !+e op!io$s le&! !o !+e A,a$as +a#e all b%! dwi$dled &o !+e s!a!%s o& @. Ampil "a$ $o lo$,e be as"e!ai$ed. T+ee&oe !a2i$, all !+e eH%i!ies o& !+is "ase i$!o "o$sidea!io$ !+is Co%! belie#es >45 millio$ wo%ld be a &ai a$d easo$able liabili!y o& >SI s%be"! !o 4* p.a. i$!ees! &om !+e &i$ali!y o& !+is esol%!io$ !o &%ll sa!is&a"!io$. Professional Services, Inc. vs. he !ourt of Appeals, et al.7#atividad Msu)stituted )y her children /arcelino Agana III, ?nrique Agana, ;r. ?((a Agana8Andaya, ;esus Agana and Ray(und Agana and ?rrique AganaN vs. he !ourt of Appeals and ;uan uentes /iguel A(pil vs. #atividad and ?nrique Agana, ".R. #os. $+'+-27".R. #o. $+'*'27".R. #o. $+2&-, e)ruary +, +$. 8%ma$ ela!io$s; ab%se o& i,+!. U$de !+e ab%se o& i,+! pi$"iple &o%$d i$ A!i"le 4' o& !+e Ci#il Code a peso$ m%s! i$ !+e e9e"ise o& +is le,al i,+! o d%!y a"! i$ ,ood &ai!+. 8e wo%ld be liable i& +e i$s!ead a"!s i$ bad &ai!+ wi!+ i$!e$! !o pe%di"e a$o!+e. Compleme$!i$, !+is pi$"iple ae A!i"les *) a$d *4 o& !+e Ci#il Code w+i"+ ,a$! !+e la!!e i$dem$i!y &o !+e i$%y +e s%&&es be"a%se o& s%"+ ab%se o& i,+! o d%!y. T+e Co%! &o%$d !+a! !+e pe!i!io$e +ad a"!ed i$ bad &ai!+ a$d wi!+ i$!e$! !o spi!e !+e espo$de$! w+e$ !+e pe!i!io$e $o!wi!+s!a$di$, a pelimi$ay i$%$"!io$ ode pe#e$!i$, +im &om doi$, so allowed a$o!+e pa!y !o ass%me !+e o&&i"e as @ep%!y Commissio$e i$ pla"e o& !+e espo$de$!. >e!i!io$e?s e9"l%sio$ o& !+e espo$de$! &om !+e "e$!e$$ial a$$i#esay memoabilia was $o! a$ +o$es! mis!a2e by a$y e"2o$i$,. I$deed +e wi!++eld +e salay a$d pe#e$!ed +e &om ass%mi$, !+e d%!ies o& !+e posi!io$. A pa!y?s e&%sal !o abide by a "o%! ode e$oi$i$, +im &om doi$, a$ a"! o!+ewise law&%l "o$s!i!%!es a$ ab%se a$d a$ %$law&%l e9e"ise o& i,+!. T+a! espo$de$! was la!e appoi$!ed @ep%!y Commissio$e &o a$o!+e di#isio$ o& !+e %ea% is imma!eial. W+ile s%"+ appoi$!me$! w+e$ a""ep!ed e$deed !+e quo @arranto "ase moo! a$d a"ademi" i! did $o! +a#e !+e e&&e"! o& wipi$, o%! !+e i$%ies s+e s%&&eed o$ a""o%$! o& >e!i!io$e !ea!me$! o& +e. T+e dama,e s%i! is a$ i$depe$de$! a"!io$. itus B. 0illanueva vs. ?((a /. Rosqueta, ".R. #o. $%2'*, ;anuary $-, +$.
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@ama,es; a"!%al dama,es a$d moal dama,es. Fo i!s ole i$ !+e "o$#esio$ o& !+e "+e"2s w+i"+ depi#ed SS>I o& !+e %se !+eeo& EH%i!able is solidaily liable wi!+ Uy !o "ompe$sa!e SS>I &o !+e dama,es i! s%&&eed. Amo$, !+e "ompe$sable dama,es ae a"!%al dama,es w+i"+ e$"ompass !+e #al%e o& !+e loss s%s!ai$ed by !+e plai$!i&& a$d !+e po&i!s !+a! !+e plai$!i&& &ailed !o ob!ai$. I$!ees! payme$!s w+i"+ SS>I "laims &all %$de !+e se"o$d "a!e,oy o& a"!%al dama,es. SS>I "omp%!ed i!s "laim &o i$!ees! payme$!s based o$ !+e i$!ees! a!e s!ip%la!ed i$ i!s "o$!a"! wi!+ I$!e"o. I! e9plai$ed !+a! !+e s!ip%la!ed i$!ees! a!e is !+e a"!%al i$!ees! i$"ome i! +ad &ailed !o ob!ai$ &om I$!e"o d%e !o !+e de&e$da$!s? !o!io%s "o$d%"!. T+e Co%! &i$ds !+e appli"a!io$ o& !+e s!ip%la!ed i$!ees! a!e eo$eo%s. SS>I did $o! e"o#e i$!ees! payme$!s a! !+e s!ip%la!ed a!e &om I$!e"o be"a%se i! a,eed !+a! !+e delay was $o! I$!e"o?s &a%l! b%! !+a! o& !+e de&e$da$!s?. I& !+a! is !+e "ase !+e$ I$!e"o is $o! i$ delay 3a! leas! $o! a&!e iss%a$"e o& !+e "+e"2s6 a$d !+e s!ip%la!ed i$!ees! payme$!s i$ !+ei "o$!a"! did $o! be"ome opea!io$al. I& I$!e"o is $o! liable !o pay &o !+e ( pe a$$%m i$!ees! a!e !+e$ SS>I did $o! los" !+a! i$"ome. SS>I "a$$o! lose some!+i$, !+a! i! was $o! e$!i!led !o i$ !+e &is! pla"e. T+%s SS>I?s "laim !+a! i! was e$!i!led !o i$!ees! i$"ome a! !+e a!e s!ip%la!ed i$ i!s "o$!a"! wi!+ I$!e"o as a meas%e o& i!s a"!%al dama,e is &alla"io%s. Moe impo!a$!ly !+e po#isio$s o& a "o$!a"! ,e$eally !a2e e&&e"! o$ly amo$, !+e pa!ies !+ei assi,$s a$d +eis. SS>I "a$$o! i$#o2e !+e "o$!a"!%al s!ip%la!io$ o$ i$!ees! payme$!s a,ai$s! EH%i!able be"a%se i! is $ei!+e a pa!y !o !+e "o$!a"! $o a$ assi,$ee o a$ +ei !o !+e "o$!a"!i$, pa!ies. =e#e!+eless i! is "lea !+a! de&e$da$!s? a"!io$s depi#ed SS>I o& !+e pese$! %se o& i!s mo$ey &o a peiod o& !wo yeas. SS>I is !+ee&oe e$!i!led !o ob!ai$ &om !+e !o!&easos !+e po&i!s !+a! i! &ailed !o ob!ai$ &om %ly 4''4 !o %$e 4''(. SS>I s+o%ld e"o#e i$!ees! a! !+e le,al a!e o& pe a$$%m !+is bei$, a$ awad &o dama,es based o$ H%asiBdeli"! a$d $o! &o a loa$ o &obeaa$"e o& mo$ey. o!+ !+e !ial a$d appella!e "o%!s awaded >ado >( millio$ i$ moal dama,es. >ado "laimed !+a! +e was &i,+!e$ed a$,%is+ed a$d seio%sly a$9io%s !+a! !+e ,o#e$me$! wo%ld pose"%!e +im &o mo$ey la%$dei$, a$d !a9 e#asio$ be"a%se o& de&e$da$!s? a"!io$s. I$ o!+e wods +e was woied abo%! !+e epe"%ssio$s !+a! de&e$da$!s? a"!io$s wo%ld +a#e o$ +im. EH%i!able a,%es &eas pa$$ed o%!. !+a! >ado?s &eas ae all ima,i$ed a$d s+o%ld $o! be "ompe$sa!ed. T+e ba$2 poi$!s o%! !+a! $o$e o& >ado?s Moal dama,es ae e"o#eable o$ly w+e$ !+ey ae !+e po9ima!e es%l! o& !+e de&e$da$!?s wo$,&%l a"! o omissio$. o!+ !+e !ial a$d appella!e "o%!s &o%$d !+a! >ado i$deed s%&&eed as a es%l! o& !+e di#esio$ o& !+e !+ee "+e"2s. I! does $o! ma!!e !+a! !+e !+i$,s +e was woied a$d a$9io%s abo%! did $o! e#e$!%ally ma!eiali-e. I! is ae &o a peso$ w+o is bese! wi!+ mo%$!i$, poblems !o si&! !+o%,+ +is emo!io$s a$d dis!i$,%is+ w+i"+ &eas o a$9ie!ies +e s+o%ld o s+o%ld $o! bo!+e wi!+. So lo$, as !+e i$%ed pa!y?s moal s%&&ei$,s ae !+e es%l! o& !+e de&e$da$!s? a"!io$s +e may e"o#e moal dama,es. T+e Co%! +owe#e &i$ds !+e awad o& >( millio$ e9"essi#e. Moal dama,es ae ,i#e$ $o! !o p%$is+ !+e de&e$da$! b%! o$ly !o ,i#e !+e plai$!i&& !+e mea$s !o ass%a,e +is s%&&ei$,s wi!+ di#esio$s a$d e"ea!io$. We &i$d !+a! !+e awad o& >5)))).)) as moal dama,es is easo$able %$de !+e "i"%ms!a$"es. ?quita)le Banking !orporation vs. Special Steel Products, Inc. and Augusto L. Pardo; G.R. =o. 4K5(5) %$e 4( *)4*. @ama,es; moal dama,es. T+e Co%! i$"eased !+e awad o& dama,es !o ₱5))))) as moal dama,es a$d ₱4))))) as e9emplay dama,es i$ "o$$e"!io$ wi!+ a &i$di$, !+a! !+e "ime o& Ta&&i"2i$, i$ >eso$s as a >os!i!%!e was "ommi!!ed. I! H%o!ed a pe#io%s %li$, >eople #. Lalli w+ee !+e Co%! s!a!ed !+a!: /!+e awad &i$ds basis i$ A!i"le **4' o& !+e Ci#il Code w+i"+ s!a!es: A!. **4'. Moal dama,es may be e"o#eed i$ !+e &ollowi$, a$d a$alo,o%s "ases: 9 9 9 3(6
Sed%"!io$ abd%"!io$ ape o o!+e las"i#io%s a"!s;
/T+e "imi$al "ase o& Ta&&i"2i$, i$ >eso$s as a >os!i!%!e is a$ a$alo,o%s "ase !o !+e "imes o& sed%"!io$ abd%"!io$ ape o o!+e las"i#io%s a"!s. I$ &a"! i! is wose. To be !a&&i"2ed as a pos!i!%!e wi!+o%! o$e?s "o$se$! a$d !o be se9%ally #iola!ed &o% !o &i#e !imes a day by di&&ee$! s!a$,es is +oe$do%s a$d a!o"io%s. T+ee is $o do%b! !+a! Loli!a e9peie$"ed p+ysi"al s%&&ei$, me$!al a$,%is+ &i,+! seio%s a$9ie!y besmi"+ed ep%!a!io$ wo%$ded &eeli$,s moal s+o"2 a$d so"ial +%milia!io$ w+e$ s+e was !a&&i"2ed as a pos!i!%!e i$ Malaysia. Si$"e !+e "ime o& Ta&&i"2i$, i$ >eso$s was a,,a#a!ed bei$, "ommi!!ed by a sy$di"a!e !+e awad o& e9emplay dama,es is li2ewise %s!i&ied.7
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!+e Ci#il Code a$d $o! o$ !+e A$!iBTa&&i"2i$, i$ >eso$s A"! as "lealy e9plai$ed i$ Lalli.7 he People of the Philippines vs. #urfrashir 9ashi( y Sara)an, et al. Bernadette Panscala, etc.>G.R. =o. 4'<*55 %$e 4( *)4* @ama,es. Respo$de$!s ae $o! e$!i!led !o moal dama,es be"a%se "o$!a"!s ae $o! e&eed !o i$ A!i"le **4' o& !+e Ci#il Code w+i"+ e$%mea!es !+e "ases w+e$ moal dama,es may be e"o#eed. A!i"le ***) o& !+e Ci#il Code allows !+e e"o#ey o& moal dama,es i$ bea"+es o& "o$!a"! w+ee !+e de&e$da$! a"!ed &a%d%le$!ly o i$ bad &ai!+. 8owe#e !+is "ase i$#ol#es a "o$!a"! !o sell w+eei$ &%ll payme$! o& !+e p%"+ase pi"e is a posi!i#e s%spe$si#e "o$di!io$ !+e $o$B&%l&illme$! o& w+i"+ is $o! a bea"+ o& "o$!a"! b%! meely a$ e#e$! !+a! pe#e$!s !+e selle &om "o$#eyi$, !i!le !o !+e p%"+ase. Si$"e !+ee is $o bea"+ o& "o$!a"! i$ !+is "ase espo$de$!s ae $o! e$!i!led !o moal dama,es. I$ !+e abse$"e o& moal !empea!e liH%ida!ed o "ompe$sa!oy dama,es e9emplay dama,es "a$$o! be ,a$!ed &o !+ey ae allowed o$ly i$ addi!io$ !o a$y o& !+e &o% 2i$ds o& dama,es me$!io$ed. /ila A. Reyes v. 0ictoria . uparan, G.R. =o. 400)<. %$e 4 *)44 Moal dama,es; peBeH%isi!es &o a$ awad. I$ payes &o moal dama,es e"o#ey is moe a$ e9"ep!io$ a!+e !+a$ !+e %le. Moal dama,es ae $o! mea$! !o be p%$i!i#e b%! ae desi,$ed !o "ompe$sa!e a$d alle#ia!e !+e p+ysi"al s%&&ei$, me$!al a$,%is+ &i,+! seio%s a$9ie!y besmi"+ed ep%!a!io$ wo%$ded &eeli$,s moal s+o"2 so"ial +%milia!io$ a$d simila +am %$%s!ly "a%sed !o a peso$. To be e$!i!led !o s%"+ a$ awad !+e "laima$! m%s! sa!is&a"!oily po#e !+a! +e +as s%&&eed dama,es a$d !+a! !+e i$%y "a%si$, i! +as sp%$, &om a$y o& !+e "ases lis!ed i$ A!i"les **4' a$d ***) o& !+e Ci#il Code. Moeo#e !+e dama,es m%s! be s+ow$ !o be !+e po9ima!e es%l! o& a wo$,&%l a"! o omissio$. T+e "laima$! m%s! !+%s es!ablis+ !+e &a"!%al basis o& !+e dama,es a$d i!s "a%sal !ie wi!+ !+e a"!s o& !+e de&e$da$!. I$ &i$e a$ awad o& moal dama,es "alls &o !+e pese$!a!io$ o& 46 e#ide$"e o& besmi"+ed ep%!a!io$ o p+ysi"al me$!al o psy"+olo,i"al s%&&ei$, s%s!ai$ed by !+e "laima$!; *6 a "%lpable a"! o omissio$ &a"!%ally es!ablis+ed; (6 poo& !+a! !+e wo$,&%l a"! o omissio$ o& !+e de&e$da$! is !+e po9ima!e "a%se o& !+e dama,es s%s!ai$ed by !+e "laima$!; a$d <6 !+e poo& !+a! !+e a"! is pedi"a!ed o$ a$y o& !+e i$s!a$"es e9pessed o e$#isio$ed by A!i"le **4' a$d A!i"le ***) o& !+e Ci#il Code. I$ !+e pese$! "ase espo$de$! &ailed !o es!ablis+ by "lea a$d "o$#i$"i$, e#ide$"e !+a! !+e i$%ies +e s%s!ai$ed wee !+e po9ima!e e&&e"! o& pe!i!io$e?s a"! o omissio$. I! !+%s be"omes $e"essay !o i$s!ead loo2 i$!o !+e ma$$e by w+i"+ pe!i!io$e "aied o%! +is e$o#a!io$s !o de!emi$e w+e!+e !+is was die"!ly espo$sible &o a$y dis!ess espo$de$! may +a#e s%&&eed si$"e !+e law eH%ies !+a! a wo$,&%l o ille,al a"! o omissio$ m%s! +a#e pe"eded !+e dama,es s%s!ai$ed by !+e "laima$!. I! beas $o!i$, !+a! pe!i!io$e was e$,a,ed i$ !+e law&%l e9e"ise o& +is pope!y i,+!s !o i$!od%"e e$o#a!io$s !o +is abode. W+ile +e i$i!ially did $o! +a#e a b%ildi$, pemi! a$d may +a#e misepese$!ed +is eal i$!e$! w+e$ +e i$i!ially so%,+! espo$de$!?s "o$se$! !+e la"2 o& !+e pemi! was i$"o$seH%e$!ial si$"e i! o$ly e$deed pe!i!io$e liable !o admi$is!a!i#e sa$"!io$s o pe$al!ies. T+e !es!imo$y o& pe!i!io$e a$d +is wi!$esses spe"i&i"ally A"+i!e"! >%$-ala$ demo$s!a!es !+a! !+ey +ad a"!%ally !a2e$ meas%es !o pe#e$! o a! !+e #ey leas! mi$imi-e !+e dama,e !o espo$de$!?s pope!y o""asio$ed by !+e "o$s!%"!io$ wo2. A"+i!e"! >%$-ala$ de!ails +ow %po$ ea"+i$, a$ a,eeme$! wi!+ pe!i!io$e &o !+e "o$s!%"!io$ o& !+e se"o$d &loo +e 3>%$-ala$6 s%#eyed pe!i!io$e?s pope!y based o$ !+e Ta$s&e Ce!i&i"a!e o& Ti!le 3TCT6 a$d Ta9 @e"laa!io$s a$d &o%$d !+a! !+e peime!e wall was wi!+i$ !+e "o$&i$es o& pe!i!io$e?s pope!y; !+a! +e !o,e!+e wi!+ pe!i!io$e se"%ed !+e "o$se$! o& !+e $ei,+bos 3i$"l%di$, espo$de$!6 pio !o !+e s!a! o& !+e e$o#a!io$ as e&le"!ed i$ a =ei,+bo?s Co$se$! da!ed %$e 4* 4''0; be&oe !+e "o$s!%"!io$ be,a$ +e %$de!oo2 meas%es !o pe#e$! debis &om &alli$, i$!o espo$de$!?s pope!y s%"+ as !+e i$s!alla!io$ o& GI s+ee! s!ai$es !+e "o$s!%"!io$ o& s"a&&oldi$,s o$ espo$de$!?s pope!y !+e i$s!%"!io$s !o +is wo2es !o "lea$ !+e aea be&oe lea#i$, a! 5:)) p.m; a$d !+a! !+e wo2es "o$d%"!ed daily "lea$B%p o& espo$de$!?s pope!y wi!+ +is "o$se$! %$!il a$imosi!y de#eloped be!wee$ !+e pa!ies. Mali"e o bad &ai!+ implies a "o$s"io%s a$d i$!e$!io$al desi,$ !o do a wo$,&%l a"! &o a dis+o$es! p%pose o moal obliH%i!y; i! is di&&ee$! &om !+e $e,a!i#e idea o& $e,li,e$"e i$ !+a! mali"e o bad &ai!+ "o$!empla!es a s!a!e o& mi$d a&&ima!i#ely opea!i$, wi!+ &%!i#e desi,$ o ill will. W+ile !+e Co%! +abos $o do%b! !+a! !+e i$"ide$!s w+i"+ ,a#e ise !o !+is disp%!e +a#e bo%,+! a$9ie!y a$d a$,%is+ !o espo$de$! i! is %$"o$#i$"ed !+a! !+e dama,e i$&li"!ed %po$ espo$de$!?s pope!y was mali"io%s o will&%l a$ eleme$! "%"ial !o mei! a$ awad o& moal dama,es %$de A!i"le ***) o& !+e Ci#il Code. Rodolfo #. Regala v. ederico P. !arin, ".R. #o. $%%2$&, April ', +$$.
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"o$!a"!i$, pa!ies may es!ablis+ s%"+ s!ip%la!io$s "la%ses !ems a$d "o$di!io$s as !+ey may deem "o$#e$ie$!. Philippine !harter Insurance !orporation vs. Petroleu( istri)utors Service !orporation> G.R. =o. 40)0'0. Apil 40 *)4*. @ama,es; eH%isi!es. Li"e$se !o opea!e a "o"2pi! is a mee pi#ile,e a$d e#e$ i& +e was able !o ,e! a b%si$ess pemi! &om !+e mayo !+is did $o! ,i#e +im a li"e$se !o opea!e a "o"2pi!. Wi!+o%! a$y le,al i,+! !o opea!e a "o"2pi! i$ !+e m%$i"ipali!y pe!i!io$e is $o! e$!i!led !o dama,es. I$%y alo$e does $o! ,i#e pe!i!io$e !+e i,+! !o e"o#e dama,es; +e m%s! also +a#e a i,+! o& a"!io$ &o !+e le,al wo$, i$&li"!ed by !+e espo$de$!s. We $eed $o! belabo !+a! /i$ ode !+a! !+e law will ,i#e edess &o a$ a"! "a%si$, dama,e !+ee m%s! be da(nu( et inuria 1 !+a! a"! m%s! be $o! o$ly +%!&%l b%! wo$,&%l.7 anilo A. u vs. 0enancio R. ;ayo(a, et al.; G.R. =o. 4K5)<* Apil *( *)4*. @ama,es; loss o& ea$i$, "apa"i!y. Clealy !+e CA eed i$ dele!i$, !+e awad &o los! i$"ome o$ !+e ,o%$d !+a! !+e USAI@ Ce!i&i"a!io$ s%ppo!i$, s%"+ "laim is sel&Bse#i$, a$d %$eliable. O$ !+e "o$!ay we &i$d said "e!i&i"a!io$ s%&&i"ie$! basis &o !+e "o%! !o ma2e a &ai a$d easo$able es!ima!e o& ose Ma"ial?s loss o& ea$i$, "apa"i!y %s! li2e i$ a(ayo v. SeKora w+ee we based !+e #i"!im?s ,oss a$$%al i$"ome o$ +is pay slip &om !+e >+ilippi$e =a!io$al >oli"e. 8e$"e we %p+old !+e !ial "o%!?s awad &o ose Ma"ial?s loss o& ea$i$, "apa"i!y. 9eirs of ;ose /arcial . 3choa, na(ely: Ru)y B. 3choa, et al. v. " S ransport !orporation7" S ransport !orporation v. 9eirs of ;ose /arcial . 3choa, na(ely: Ru)y B. 3choa, et al., ".R. #o. $22$ ".R. #o. $2$+&, /arch -, +$$ @ama,es; moal. W+ile we deemed i! pope !o modi&y !+e amo%$! o& moal dama,es awaded by !+e !ial "o%! as dis"%ssed below we $e#e!+eless a,ee wi!+ !+e +eis !+a! !+e CA s+o%ld $o! +a#e pe,,ed said awad i$ popo!io$ !o !+e awad o& e9emplay dama,es. Moal a$d e9emplay dama,es ae based o$ di&&ee$! %al &o%$da!io$s. T+ey ae di&&ee$! i$ $a!%e a$d eH%ie sepaa!e de!emi$a!io$. T+e amo%$! o& o$e "a$$o! be made !o depe$d o$ !+e o!+e. I$ 0ictory Liner Inc. v. "a((ad we awaded >4))))).)) by way o& moal dama,es !o !+e +%sba$d a$d !+ee "+ilde$ o& !+e de"eased a ('Byea old Se"!io$ C+ie& o& !+e %ea% o& I$!e$al Re#e$%e !o "ompe$sa!e said +eis &o !+e ,ie& "a%sed by +e dea!+. T+is is p%s%a$! !o !+e po#isio$s o& A!i"les 4K< a$d **)3(6 w+i"+ po#ide: A!. 4K<. @ama,es i$ "ases "ompised i$ !+is Se"!io$ s+all be awaded i$ a""oda$"e wi!+ Ti!le VIII o& !+is oo2 "o$"e$i$, @ama,es. A!i"les **) s+all also apply !o !+e dea!+ o& a passe$,e "a%sed by !+e bea"+ o& "o$!a"! by a "ommo$ "aie. A!. **). 9 9 9 3(6 T+e spo%se le,i!ima!e a$d ille,i!ima!e des"e$da$!s a$d !+e as"e$da$!s o& !+e de"eased may dema$d moal dama,es &o me$!al a$,%is+ by easo$ o& !+e dea!+ o& !+e de"eased. 8ee !+ee is $o H%es!io$ !+a! !+e +eis ae li2ewise e$!i!led !o moal dama,es p%s%a$! !o !+e abo#e po#isio$s "o$sidei$, !+e me$!al a$,%is+ s%&&eed by !+em by easo$ o& ose Ma"ial?s %$!imely dea!+. 9eirs of ;ose /arcial . 3choa, na(ely: Ru)y B. 3choa, et al. v. " S ransport !orporation7" S ransport !orporation v. 9eirs of ;ose /arcial . 3choa, na(ely: Ru)y B. 3choa, et al., ".R. #o. $22$ ".R. #o. $2$+&, /arch -, +$$ Moal dama,es; "o$di!io$s. T+e &ollowi$, ae !+e "o$di!io$s &o !+e awad o& moal dama,es: 346 !+ee is a$ i$%y 1 w+e!+e p+ysi"al me$!al o psy"+olo,i"al P$das+; "lealy s%s!ai$ed by !+e "laima$!; 3*6 !+e "%lpable a"! o omissio$ is &a"!%ally es!ablis+ed 3(6 !+e wo$,&%l a"! o omissio$ o& !+e de&e$da$! is !+e po9ima!e "a%se o& !+e i$%y s%s!ai$ed by !+e "laima$!; a$d 3<6 !+e awad o& !+e o& dama,es is pedi"a!ed o$ a$y o& !+e "ases s!a!ed i$ A!i"le **4' o& !+e Ci#il Code. I$ !+e pese$! "ase S%ae- &ailed !o es!ablis+ !+a! +is "laimed i$%y was po9ima!ely "a%sed by !+e eo$eo%s ma2i$, o& @AIF o$ !+e "+e"2s. >o9ima!e "a%se +as bee$ de&i$ed as /a$y "a%se w+i"+ i$ $a!%al a$d "o$!i$%o%s seH%e$"e %$bo2e$ by a$y e&&i"ie$! i$!e#e$i$, "a%se pod%"es !+e es%l! "omplai$ed o& a$d wi!+o%! w+i"+ wo%ld $o! +a#e o""%ed.7 T+ee is $o!+i$, i$ S%ae-?s !es!imo$y w+i"+ "o$#i$"i$,ly s+ows !+a! !+e eo$eo%s ma2i$, o& @AIF o$ !+e "+e"2s po9ima!ely "a%sed +is alle,ed psy"+olo,i"al o so"ial i$%ies. S%ae- meely !es!i&ied !+a! +e s%&&eed +%milia!io$ a$d !+a! !+e pospe"!i#e "o$solida!io$ o& !+e !i!les !o !+e Ta,ay!ay >ope!ies did $o! ma!eiali-e d%e !o !+e dis+o$o o& +is "+e"2s $o! die !o !+e eo$eo%s ma2i$, o& !+e @AIF o$ +is "+e"2s. 8e$"e S%ae- +as o$ly +imsel& !o blame &o +is +%! &eeli$,s a$d !+e %$s%""ess&%l !a$sa"!io$ wi!+ +is "lie$! as !+ese wee die"!ly "a%sed by !+e %s!i&ied dis+o$oi$, o& +is "+e"2s. Bank of the Philippines Islands 0s. Reynald R. Suare5, ".R. #o. $'22&, /arch $&, +$. @ama,es; a!!o$ey?s &ees. I! is well a""ep!ed i$ !+is %isdi"!io$ !+a! $o pemi%m s+o%ld be pla"ed o$ !+e i,+! !o li!i,a!e a$d
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o& !+e !ivil !ode !+a! e#eyo$e m%s! i$ !+e pe&oma$"e o& +is d%!ies obse#e +o$es!y a$d ,ood &ai!+ a$d !+e %le embodied i$ A!i"le 44K) !+a! a$yo$e ,%il!y o& &a%d 3bad &ai!+6 i$ !+e pe&oma$"e o& +is obli,a!io$ s+all be liable &o dama,es. %! as $o!ed by !+e Co%! i$ /orales v. !ourt of Appeals !+e awad o& a!!o$ey?s &ees is !+e e9"ep!io$ a!+e !+a$ !+e %le. T+e powe o& a "o%! !o awad a!!o$ey?s &ees %$de A!i"le **)0 o& !+e !ivil !ode dema$ds &a"!%al le,al a$d eH%i!able %s!i&i"a!io$; i!s basis "a$$o! be le&! !o spe"%la!io$ a$d "o$e"!%e. T+e ,e$eal %le is !+a! a!!o$ey?s &ees "a$$o! be e"o#eed as pa! o& dama,es be"a%se o& !+e poli"y !+a! $o pemi%m s+o%ld be pla"ed o$ !+e i,+! !o li!i,a!e. 8eei$ !+e eleme$! o& bad &ai!+ o$ !+e pa! o& >il+i$o i$ "omme$"i$, a$d pose"%!i$, Ci#il Case =o. *40'0B'( w+i"+ was $e"essay !o pedi"a!e !+e law&%l ,a$! o& a!!o$ey?s &ees based o$ A!i"le **)0 3<6 o& !+e !ivil !ode was $o! es!ablis+ed. A""odi$,ly !+e pe!i!io$es? dema$d &o a!!o$ey?s &ees m%s! &ail. Spouses /oises and !le(encia Andrada v. Pilhino Sales !orporation,
represented )y its Branch /anager, ;oo S. Saet> G.R. =o. 45<<0. Feb%ay *( *)44. @ama,es; a!!o$ey?s &ees. W+ile i! is a so%$d poli"y $o! !o se! a pemi%m o$ !+e i,+! !o li!i,a!e we &i$d !+a! espo$de$! is e$!i!led !o easo$able a!!o$ey?s &ees. A!!o$ey?s &ees may be awaded w+e$ a pa!y is "ompelled !o li!i,a!e o i$"% e9pe$ses !o po!e"! i!s i$!ees! o w+e$ !+e "o%! deems i! %s! a$d eH%i!able. I$ !+is "ase pe!i!io$e e&%sed !o a$swe &o !+e loss o& See?s #e+i"le w+i"+ was deposi!ed wi!+ i! &o sa&e2eepi$,. T+is e&%sal "o$s!ai$ed espo$de$! !+e i$s%e o& See a$d s%bo,a!ed !o !+e la!!e?s i,+! !o li!i,a!e a$d i$"% e9pe$ses. ur)an Apart(ents !orp., etc. vs. Pioneer Insurance and Surety !orp.> ".R. #o. $2-*$-. ;anuary $+, +$$ . A!!o$ey?s &ees. I! is se!!led !+a! !+e awad o& a!!o$ey?s &ees is !+e e9"ep!io$ a!+e !+a$ !+e ,e$eal %le; "o%$sel?s &ees ae $o! awaded e#ey !ime a pa!y pe#ails i$ a s%i! be"a%se o& !+e poli"y !+a! $o pemi%m s+o%ld be pla"ed o$ !+e i,+! !o li!i,a!e. A!!o$ey?s &ees as pa! o& dama,es ae $o! $e"essaily eH%a!ed !o !+e amo%$! paid by a li!i,a$! !o a lawye. I$ !+e odi$ay se$se a!!o$ey?s &ees epese$! !+e easo$able "ompe$sa!io$ paid !o a lawye by +is "lie$! &o !+e le,al se#i"es +e +as e$deed !o !+e la!!e; w+ile i$ i!s e9!aodi$ay "o$"ep! !+ey may be awaded by !+e "o%! as i$dem$i!y &o dama,es !o be paid by !+e losi$, pa!y !o !+e pe#aili$, pa!y. A!!o$ey?s &ees as pa! o& dama,es ae awaded o$ly i$ !+e i$s!a$"es spe"i&ied i$ A!i"le **)0 o& !+e Ci#il Code. As s%"+ i! is $e"essay &o !+e "o%! !o ma2e &i$di$,s o& &a"! a$d law !+a! wo%ld bi$, !+e "ase wi!+i$ !+e ambi! o& !+ese e$%mea!ed i$s!a$"es !o %s!i&y !+e ,a$! o& s%"+ awad a$d i$ all "ases i! m%s! be easo$able. ilo(ena R. Benedicto vs. Antonio 0illaflores> ".R. #o. $%&+. 3cto)er ', +$. A!!o$ey?s &ees. We +a#e s!essed !+a! !+e awad o& a!!o$ey?s &ees is !+e e9"ep!io$ a!+e !+a$ !+e %le as !+ey ae $o! always awaded e#ey !ime a pa!y pe#ails i$ a s%i! be"a%se o& !+e poli"y !+a! $o pemi%m s+o%ld be pla"ed o$ !+e i,+! !o li!i,a!e. A!!o$ey?s &ees as pa! o& dama,es is awaded o$ly i$ !+e i$s!a$"es spe"i&ied i$ A!i"le **)0 o& !+e Ci#il Code. inancial Building !orporation vs. Rudlin International !orporation, et al.7Rudlin International !orporation, et al. vs. inancial Building !orporation> ".R. #o. $'*$%'7".R. #o. $'*<*2. 3cto)er *, +$. A!!o$ey?s &ees. A$ awad o& a!!o$ey?s &ees is !+e e9"ep!io$ a!+e !+a$ !+e %le. T+e i,+! !o li!i,a!e is so pe"io%s !+a! a pe$al!y s+o%ld $o! be "+a,ed o$ !+ose w+o may e9e"ise i! eo$eo%sly. I! is $o! ,i#e$ meely be"a%se !+e de&e$da$! pe#ails a$d !+e a"!io$ is la!e de"laed !o be %$&o%$ded %$less !+ee was a delibea!e i$!e$! !o "a%se pe%di"e !o !+e o!+e pa!y. Spouses Ra(y and 6enaida Pudadera vs. Ireneo /agallanes and the late aisy eresa cortel /agallanes, su)stituted )y her children, #elly /. /arque5, et al.>".R. #o. $22<, 3cto)er $%, +$. @ama,es; a!!o$ey?s &ees. O$ !+e awad o& a!!o$ey?s &ees a!!o$ey?s &ees a$d e9pe$ses o& li!i,a!io$ wee awaded be"a%se Al&edo was "ompelled !o li!i,a!e d%e !o !+e %$%s! e&%sal o& La$d a$2 !o e&%$d !+e amo%$! +e paid. T+ee ae i$s!a$"es w+e$ i! is %s! a$d eH%i!able !o awad a!!o$ey?s &ees a$d e9pe$ses o& li!i,a!io$. A!. **)0 o& !+e Ci#il Code pe!i$e$!ly s!a!es: I$ !+e abse$"e o& s!ip%la!io$ a!!o$ey?s &ees a$d e9pe$ses o& li!i,a!io$ o!+e !+a$ %di"ial "os!s "a$$o! be e"o#eed e9"ep!: 9999 3*6 W+e$ !+e de&e$da$!?s a"! o omissio$ +as "ompelled !+e plai$!i&& !o li!i,a!e wi!+ !+id peso$s o !o i$"% e9pe$ses !o po!e"! +is i$!ees!. Gi#e$ !+a! Al&edo was i$deed "om elled !o li!i a!e a ai$s! La$d a$2 a$d i$"% e9 e$ses !o o!e"! +is i$!ees! we &i$d !+a!
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i$!ees!. We +owe#e op! !o ed%"e !+e same !o >4)))).)) &om >*)))).)). 0itarich !orporation vs. !hona Locsin, ".R. #o. $%$&', #ove()er $&, +$. A!!o$ey?s &ees. A!i"le **)03*6 o& !+e Ci#il Code allows !+e awad o& a!!o$ey?s &ees i$ "ases w+ee !+e de&e$da$!?s a"! o omissio$ +as "ompelled !+e plai$!i&& !o li!i,a!e wi!+ !+id peso$s o !o i$"% e9pe$ses !o po!e"! +is i$!ees!. A!!o$ey?s &ees may be awaded by a "o%! !o o$e w+o was "ompelled !o li!i,a!e wi!+ !+id peso$s o !o i$"% e9pe$ses !o po!e"! +is o +e i$!ees! by easo$ o& a$ %$%s!i&ied a"! o omissio$ o& !+e pa!y &om w+om i! is so%,+!. /etropolitan Bank trust !o(pany, Inc. vs. he Board of rustees of Riverside /ills !orp. Provident and Retire(ent und, et al., ".R. #o. $2'-&-, Septe()er %, +$ @ama,es; e9emplay. E9emplay o "oe"!i#e dama,es ae imposed by way o& e9ample o "oe"!io$ &o !+e p%bli" ,ood i$ addi!io$ !o moal !empea!e liH%ida!ed o "ompe$sa!oy dama,es. I$ quasi8delicts e9emplay dama,es may be ,a$!ed i& !+e de&e$da$! a"!ed wi!+ ,oss $e,li,e$"e. Celedo$io Ta$?s dea!+ a$d !+e des!%"!io$ o& !+e pe!i!io$es? +ome a$d !ailoi$, s+op wee %$H%es!io$ably "a%sed by !+e espo$de$!s? ,oss $e,li,e$"e. T+e law allows !+e ,a$! o& e9emplay dama,es i$ "ases s%"+ as !+is !o se#e as a wa$i$, !o !+e p%bli" a$d as a de!ee$! a,ai$s! !+e epe!i!io$ o& !+is 2i$d o& dele!eio%s a"!io$s. T+e ,a$! +owe#e s+o%ld be !empeed as i! is $o! i$!e$ded !o e$i"+ o$e pa!y o !o impo#eis+ a$o!+e. Leticia an, et al. vs. 3/! !arriers, Inc. and Bonifacio Ara()ala>".R. #o. $-&+$, ;anuary $+, +$$ . @ama,es; e"o#ey o& !empea!e dama,es allowed w+ee !+ee is $o "ompe!e$! poo& o& a"!%al dama,es o loss o& ea$i$, "apa"i!y. Abse$! "ompe!e$! poo& o$ !+e a"!%al dama,es s%&&eed a pa!y s!ill +as !+e op!io$ o& "laimi$, !empea!e dama,es w+i"+ may be allowed i$ "ases w+ee &om !+e $a!%e o& !+e "ase de&i$i!e poo& o& pe"%$iay loss "a$$o! be add%"ed al!+o%,+ !+e "o%! is "o$#i$"ed !+a! !+e a,,ie#ed pa!y s%&&eed some pe"%$iay loss. As a %le do"%me$!ay e#ide$"e s+o%ld be pese$!ed !o s%bs!a$!ia!e !+e "laim &o loss o& ea$i$, "apa"i!y. y way o& e9"ep!io$ dama,es &o loss o& ea$i$, "apa"i!y may be awaded despi!e !+e abse$"e o& do"%me$!ay e#ide$"e w+e$: 346 !+e de"eased is sel&Bemployed a$d ea$i$, less !+a$ !+e mi$im%m wa,e %$de "%e$! labo laws i$ w+i"+ "ase %di"ial $o!i"e may be !a2e$ o& !+e &a"! !+a! i$ !+e de"eased?s li$e o& wo2 $o do"%me$!ay e#ide$"e is a#ailable; o 3*6 !+e de"eased is employed as a daily wa,e wo2e ea$i$, less !+a$ !+e mi$im%m wa,e %$de "%e$! labo laws. Leticia an, et al. vs. 3/! !arriers, Inc. and Bonifacio Ara()ala> ".R. #o. $-&+$, ;anuary $+, +$$ . @ama,es; &o loss o& ea$i$, "apa"i!y. T+e awad o& dama,es &o loss o& ea$i$, "apa"i!y is "o$"e$ed wi!+ !+e de!emi$a!io$ o& losses o dama,es s%s!ai$ed by espo$de$!s as depe$de$!s a$d i$!es!a!e +eis o& !+e de"eased. T+is "o$sis!s $o! o& !+e &%ll amo%$! o& +is ea$i$,s b%! o& !+e s%ppo! w+i"+ !+ey e"ei#ed o wo%ld +a#e e"ei#ed &om +im +ad +e $o! died as a "o$seH%e$"e o& !+e $e,li,e$! a"!. T+%s !+e amo%$! e"o#eable is $o! !+e loss o& !+e #i"!im?s e$!ie ea$i$,s b%! a!+e !+e loss o& !+a! po!io$ o& !+e ea$i$,s w+i"+ !+e be$e&i"iay wo%ld +a#e e"ei#ed. I$dem$i!y &o loss o& ea$i$, "apa"i!y is de!emi$ed by "omp%!i$, !+e $e! ea$i$, "apa"i!y o& !+e #i"!im as &ollows: =e! Ea$i$, Capa"i!y X li&e e9pe"!a$"y 9 3,oss a$$%al i$"ome Beaso$able a$d $e"essay li#i$, e9pe$ses6. Li&e e9pe"!a$"y s+all be "omp%!ed by applyi$, !+e &om%la 3*J( 9 D0) B a,e a! dea!+6 adop!ed &om !+e Amei"a$ E9pe"!a$"y Table o& Mo!ali!y o !+e A"!%aial o& Combi$ed E9peie$"e Table o& Mo!ali!y. O$ !+e o!+e +a$d ,oss a$$%al i$"ome eH%ies !+e pese$!a!io$ o& do"%me$!ay e#ide$"e &o !+e p%pose o& po#i$, !+e #i"!im?s a$$%al i$"ome. T+e #i"!im?s +eis pese$!ed i$ e#ide$"e SeQoa?s pay slip &om !+e >=> s+owi$, +im !o +a#e +ad a ,oss mo$!+ly salay o& >4*K5<.)). Mea$w+ile !+e #i"!im?s $e! i$"ome was "oe"!ly pe,,ed a! 5) o& +is ,oss i$"ome i$ !+e abse$"e o& poo& as e,ads !+e #i"!im?s li#i$, e9pe$ses. !onstancia ". a(ayo, et al. vs. Rosalia A)ad SeKora, et al., ".R. #o. $2'-*', #ove()er $&, +$. @ama,es; moal a$d e9emplay; s!a$dad o& dili,e$"e appli"able !o a ba$2. T+e awad o& moal dama,es s+o%ld be ,a$!ed i$ easo$able amo%$!s depe$di$, o$ !+e &a"!s a$d "i"%ms!a$"es o& !+e "ase. Moal dama,es ae mea$! !o "ompe$sa!e !+e "laima$! &o a$y p+ysi"al s%&&ei$, me$!al a$,%is+ &i,+! seio%s a$9ie!y besmi"+ed ep%!a!io$ wo%$ded &eeli$,s moal s+o"2 so"ial +%milia!io$ a$d simila i$%ies %$%s!ly "a%sed. As !o !+e awad o& e9emplay dama,es !+e law allows i! by way o& e9ample &o !+e p%bli" ,ood. T+e b%si$ess o& ba$2i$, is impessed wi!+ p%bli" i$!ees! a$d ,ea! elia$"e is made o$ !+e ba$2?s swo$ po&essio$ o& dili,e$"e a$d me!i"%lo%s$ess i$ ,i#i$, iepoa"+able se#i"e. T+%s !+e Co%! a&&ims !+e awad as a way o& se!!i$, a$ e9ample &o !+e p%bli" ,ood. I$
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@ama,es. T+e pa!y &om w+om dama,es was so%,+! !o be e"o#eed 3!+e pe!i!io$e6 dis!ib%!ed "opies o& !+e de"isio$ o& !+e lowe "o%! o$ a$ %$law&%l de!ai$e "ase !o !+e $ei,+bos o& !+e losi$, pa!y 3!+e espo$de$!6. T+e la!!e &iled a "omplai$! a,ai$s! !+e espo$de$! &o amo$, o!+es moal dama,es a,ai$s! !+e pe!i!io$e &o !+e embaassme$! a$d +%milia!io$ +e s%&&eed by easo$ o& pe!i!io$e?s a"!io$s. T+e "omplai$! was dismissed by !+e lowe "o%!. T+e Co%! o& Appeals e#esed !+e dismissal a$d we$! o$ !o &i$d !+e pe!i!io$e liable &o dama,es. T+e S%peme Co%! a,eed wi!+ !+e CA !+a! !+e "omplai$! s+o%ld $o! +a#e bee$ dismissed b%! disa,eed wi!+ !+e CA?s aleady &i$di$, liabili!y as $o e#ide$"e a! !+a! poi$! +ad bee$ add%"ed ye!. A "a%se o& a"!io$ 3&o dama,es6 e9is!s i& !+e &ollowi$, eleme$!s ae pese$!: 346 a i,+! i$ &a#o o& !+e plai$!i&& by w+a!e#e mea$s a$d %$de w+a!e#e law i! aises o is "ea!ed; 3*6 a$ obli,a!io$ o$ !+e pa! o& !+e $amed de&e$da$! !o espe"! o $o! !o #iola!e s%"+ i,+!; a$d 3(6 a$ a"! o omissio$ o$ !+e pa! o& s%"+ de&e$da$! #iola!i#e o& !+e i,+! o& !+e plai$!i&& o "o$s!i!%!i$, a bea"+ o& !+e obli,a!io$ o& de&e$da$! !o !+e plai$!i&& &o w+i"+ !+e la!!e may mai$!ai$ a$ a"!io$ &o e"o#ey o& dama,es. T+e "o%! &o%$d !+a! all !+ese eleme$!s wee pese$!.
irst espo$de$! &iled !+e "omplai$! !o po!e"! +is ,ood "+aa"!e $ame a$d ep%!a!io$. E#ey ma$ +as a i,+! !o b%ild 2eep a$d be &a#oed wi!+ a ,ood $ame. T+is i,+! is po!e"!ed by law wi!+ !+e e"o,$i!io$ o& sla$de a$d libel as a"!io$able wo$,s w+e!+e as "imi$al o&&e$ses o !o!%o%s "o$d%"!. Second pe!i!io$es ae obli,ed !o espe"! espo$de$!?s ,ood $ame e#e$ !+o%,+ !+ey ae opposi$, pa!ies i$ !+e %$law&%l de!ai$e "ase. As A!i"le 4' o& !+e Ci#il Code eH%ies /De#ey peso$ m%s! i$ !+e e9e"ise o& +is i,+!s a$d i$ !+e pe&oma$"e o& +is d%!ies a"! wi!+ %s!i"e ,i#e e#eyo$e +is d%e a$d obse#e +o$es!y a$d ,ood &ai!+.7 A #iola!io$ o& s%"+ pi$"iple "o$s!i!%!es a$ ab%se o& i,+!s a !o!%o%s "o$d%"!. >e!i!io$e is also e9pe"!ed !o espe"! espo$de$!?s /di,$i!y peso$ali!y pi#a"y a$d pea"e o& mi$d7 %$de A!i"le * o& !+e Ci#il Code. T+%s A!i"le **4'34)6 o& !+e Ci#il Code allows !+e e"o#ey o& moal dama,es &o a"!s a$d a"!io$s e&eed !o i$ A!i"le * amo$, o!+e po#isio$s o& !+e Ci#il Code.
And third espo$de$! alle,ed !+a! !+e dis!ib%!io$ by pe!i!io$es !o 8oses+oe illa,e +omeow$es o& "opies o& !+e MeTC de"isio$ i$ !+e %$law&%l de!ai$e "ase w+i"+ was ad#ese !o espo$de$! a$d s!ill o$ appeal be&oe !+e RTCBa$"+ 00 +ad $o appae$! law&%l o %s! p%pose e9"ep! !o +%milia!e espo$de$! o assa%l! +is "+aa"!e. As a es%l! espo$de$! s%&&eed dama,es 1 be"omi$, !+e !al2 o& !+e !ow$ a$d bei$, depi#ed o& +is poli!i"al "aee. >e!i!io$es easo$ !+a! espo$de$! +as $o "a%se o& a"!io$ a,ai$s! !+em si$"e !+e MeTC de"isio$ i$ !+e %$law&%l de!ai$e "ase was pa! o& p%bli" e"ods. I! is aleady se!!led !+a! !+e p%bli" +as a i,+! !o see a$d "opy %di"ial e"ods a$d do"%me$!s. 8owe#e !+is is $o! a "ase o& !+e p%bli" see2i$, a$d bei$, de$ied a""ess !o %di"ial e"ods a$d do"%me$!s. T+e "o$!o#esy is oo!ed i$ !+e dissemi$a!io$ by pe!i!io$es o& !+e MeTC %d,me$! a,ai$s! espo$de$! !o 8oses+oe illa,e +omeow$es w+o wee $o! i$#ol#ed a! all i$ !+e %$law&%l de!ai$e "ase !+%s p%po!edly a&&e"!i$, $e,a!i#ely espo$de$!?s ,ood $ame a$d ep%!a!io$ amo$, said +omeow$es. T+e %$law&%l de!ai$e "ase was a pi#a!e disp%!e be!wee$ pe!i!io$es a$d espo$de$! a$d !+e MeTC de"isio$ a,ai$s! espo$de$! was !+e$ s!ill pe$di$, appeal be&oe !+e RTCBa$"+ 00 e$dei$, s%spe"! pe!i!io$es? i$!e$!io$s &o dis!ib%!i$, "opies o& said MeTC de"isio$ !o $o$Bpa!ies i$ !+e "ase. W+ile pe!i!io$es wee &ee !o "opy a$d dis!ib%!e s%"+ "opies o& !+e MeTC %d,me$! !o !+e p%bli" !+e H%es!io$ is w+e!+e !+ey did so wi!+ !+e i$!e$! o& +%milia!i$, espo$de$! a$d des!oyi$, !+e la!!e?s ,ood $ame a$d ep%!a!io$ i$ !+e "omm%$i!y. ?r(elinda /analoto, et al. vs. Is(ael 0eloso III, ".R. #o. $2$<'&, 3cto)er ', +$. @ama,es; a"!%al dama,es. A"!%al o "ompe$sa!oy dama,es i$dem$i&i"a!io$ "ompises $o! o$ly !+e #al%e o& !+e loss s%&&eed b%! li2ewise !+e po&i!s !+e obli,ee &ailed !o ob!ai$. %! i$ !+is "ase +e "o%! did $o! &i$d a$y e#ide$"e s%ppo!i$, !+e "laim &o dama,es w+i"+ m%s! be po#ed. !ali)re raders Inc., /ario Sison Se)astian and /inda Blanco Se)astian vs. Bayer Philippines, Inc.> ".R. #o. $'$*<$, 3cto)er $<, +$. @ama,es; a"!%al. A"!%al dama,es p%!s !+e "laima$! i$ !+e posi!io$ i$ w+i"+ +e +ad bee$ be&oe +e was i$%ed. T+e awad !+eeo& m%s! be based o$ !+e e#ide$"e pese$!ed $o! o$ !+e peso$al 2$owled,e o& !+e "o%!; a$d "e!ai$ly $o! o$ &limsy emo!e spe"%la!i#e a$d $o$Bs%bs!a$!ial poo&. U$de !+e Ci#il Code o$e is e$!i!led !o a$ adeH%a!e "ompe$sa!io$ o$ly &o s%"+ pe"%$iay loss s%&&eed by +im as +e +as d%ly po#ed. Adrian ilson International Associates, Inc. vs. / Philippines, Inc., ".R. #o. $'+'%, ;uly +', +$.
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d%ly s%ppo!ed by e"eip!s. 3/! !arriers, Inc. and ;erry AKalucas y Pitalino vs. Spouses Ro)erto !. #a)ua and Rosario . #a)ua, ".R. #o. $*%-2*, ;uly +, +$. @ama,es; a!!o$ey?s &ees. T+e %le o$ !+e awad o& a!!o$ey?s &ees is !+a! !+ee m%s! be a %s!i&i"a!io$ &o !+e same. I$ !+e abse$"e o& a s!a!eme$! w+y a!!o$ey?s &ees wee awaded !+e same s+o%ld be disallowed. 3/! !arriers, Inc. and ;erry AKalucas y Pitalino vs. Spouses Ro)erto !. #a)ua and Rosario . #a)ua, ".R. #o. $*%-2*, ;uly +, +$. @ama,es; A!!o$ey?s Fees. T+e law allows a pa!y !o e"o#e a!!o$ey?s &ees %$de a wi!!e$ a,eeme$!. I$ Barons /arketing !orporation v. !ourt of Appeals !+e Co%! %led !+a!: /DT+e a!!o$ey?s &ees +ee ae i$ !+e $a!%e o& liH%ida!ed dama,es a$d !+e s!ip%la!io$ !+ee&o is ap!ly "alled a pe$al "la%se. I! +as bee$ said !+a! so lo$, as s%"+ s!ip%la!io$ does $o! "o$!a#e$e law moals o p%bli" ode i! is s!i"!ly bi$di$, %po$ de&e$da$!. T+e a!!o$ey?s &ees so po#ided ae awaded i$ &a#o o& !+e li!i,a$! $o! +is "o%$sel. O$ !+e o!+e +a$d !+e law also allows pa!ies !o a "o$!a"! !o s!ip%la!e o$ liH%ida!ed dama,es !o be paid i$ "ase o& bea"+. A s!ip%la!io$ o$ liH%ida!ed dama,es is a pe$al!y "la%se w+ee !+e obli,o ass%mes a ,ea!e liabili!y i$ "ase o& bea"+ o& a$ obli,a!io$. T+e obli,o is bo%$d !o pay !+e s!ip%la!ed amo%$! wi!+o%! $eed &o poo& o$ !+e e9is!e$"e a$d o$ !+e meas%e o& dama,es "a%sed by !+e bea"+. I$ !+e pese$! "ase !+e i$#oi"es s!ip%la!e &o *5 o& !+e o#ed%e a""o%$!s as a!!o$ey?s &ees. T+e o#ed%e a""o%$! i$ !+is "ase amo%$!s !o >*<4K)<.'4 *5 o& w+i"+ is >)<*.*(. T+is amo%$! is $o! e9"essi#e o %$"o$s"io$able +e$"e we s%s!ai$ !+e amo%$! o& a!!o$ey?s &ees as s!ip%la!ed by !+e pa!ies. Asian !onstruction and evelop(ent !orporation vs. !athay Pacific Steel !orporation, ".R. #o. $'2-*+, ;une +-, +$. @ama,es; A!!o$ey?s Fees. I$ !+is "ase Masma$ @ysdale?s s%ppli"a!io$ &o !+e awad o& a!!o$ey?s &ees i$ i!s &a#o m%s! be de$ied be"a%se i! "o%ld $o! "laim !+a! i! was "ompelled !o li!i,a!e o !+a! !+e "i#il a"!io$ o po"eedi$, a,ai$s! i! was "lealy %$&o%$ded. T+e oi$! #e$!%e a,eeme$! be!wee$ Masma$ @ysdale a$d i!s "oBpa!y Go!es"o po#ided !+a! i$ !+e e#e$! a pa!y ad#a$"es &%$ds &o !+e poe"! !+e oi$! #e$!%e s+all epay !+e ad#a$"i$, pa!y. Masma$ @ysdale was !+%s $o! pe"l%ded &om ad#a$"i$, &%$ds !o pay &o >GI?s "o$!a"!ed se#i"es !o aba!e a$y le,al a"!io$ a,ai$s! !+e oi$! #e$!%e i!sel&. I! was i$ &a"! i!s +adli$e i$sis!e$"e o$ Go!es"o +a#i$, sole espo$sibili!y !o pay &o !+e obli,a!io$ despi!e !+e &a"! !+a! >GI?s se#i"es edo%$ded !o !+e be$e&i! o& !+e oi$! #e$!%e !+a! spaw$ed !+e le,al a"!io$ a,ai$s! i! a$d Go!es"o. /ars(an rysdale vs. Philippine "eoanalytics, et al. and "otesco Properties vs. /ars(an rysdale Land, Inc., et al., ".R. #o. $%<<2* ".R. #o. $%<<2', ;une +-, +$ . A!!o$ey?s &ees; quantu( (eruit. T+e pi$"iple o& quantu( (eruit 3as m%"+ as +e dese#es6 may be a basis &o de!emi$i$, !+e easo$able amo%$! o& a!!o$ey?s &ees. Ouantu( (eruit is a de#i"e !o pe#e$! %$d%e e$i"+me$! based o$ !+e eH%i!able pos!%la!e !+a! i! is %$%s! &o a peso$ !o e!ai$ be$e&i! wi!+o%! payi$, &o i!. I! is appli"able e#e$ i& !+ee was a &omal wi!!e$ "o$!a"! &o a!!o$ey?s &ees as lo$, as !+e a,eed &ee was &o%$d by !+e "o%! !o be %$"o$s"io$able. I$ &i9i$, a easo$able "ompe$sa!io$ &o !+e se#i"es e$deed by a lawye o$ !+e basis o& quantu( (eruit &a"!os s%"+ as !+e !ime spe$! a$d e9!e$! o& se#i"es e$deed; $o#el!y a$d di&&i"%l!y o& !+e H%es!io$s i$#ol#ed; impo!a$"e o& !+e s%be"! ma!!e; s2ill dema$ded; pobabili!y o& losi$, o!+e employme$! as a es%l! o& a""ep!a$"e o& !+e po&eed "ase; "%s!omay "+a,es &o simila se#i"es; amo%$! i$#ol#ed i$ !+e "o$!o#esy a$d !+e be$e&i!s es%l!i$, !o !+e "lie$!; "e!ai$!y o& "ompe$sa!io$; "+aa"!e o& employme$!; a$d po&essio$al s!a$di$, o& !+e lawye may be "o$sideed. I$d%bi!ably e$!wi$ed wi!+ a lawye?s d%!y !o "+a,e o$ly easo$able &ee is !+e powe o& !+e Co%! !o ed%"e !+e amo%$! o& a!!o$ey?s &ees i& !+e same is e9"essi#e a$d %$"o$s"io$able i$ ela!io$ !o Se". *< R%le 4(0 o& !+e R%les. A!!o$ey?s &ees ae %$"o$s"io$able i& !+ey a&&o$! o$e?s se$se o& %s!i"e de"e$"y o %$easo$able$ess. T+e de!emi$a!io$ o& !+e amo%$! o& easo$able a!!o$ey?s &ees eH%ies !+e pese$!a!io$ o& e#ide$"e a$d a &%llBblow$ !ial. I! wo%ld be o$ly a&!e d%e +eai$, a$d e#al%a!io$ o& !+e e#ide$"e pese$!ed by !+e pa!ies !+a! !+e !ial "o%! "a$ e$de %d,me$! as !o !+e popie!y o& !+e amo%$! !o be awaded. 9ico)lo /. !atly MdeceasedN, su)tituted )y his @ife, Lourdes A. !atly vs. illia( #avarro, et al., ".R. #o. $'2+<-, /ay &, +$. @ama,es; e9emplay dama,es; a!!o$ey?s &ees. I! is a eH%isi!e i$ !+e ,a$! o& e9emplay dama,es !+a! !+e a"! o& !+e o&&e$de m%s! be a""ompa$ied by bad &ai!+ o do$e i$ a wa$!o$ &a%d%le$! o male#ole$! ma$$e. O$ !+e o!+e +a$d a!!o$ey?s &ees may be awaded o$ly w+e$ a pa!y is "ompelled !o li!i,a!e o !o i$"% e9pe$ses !o po!e"! +is i$!ees! by easo$ o& a$ %$%s!i&ied a"! o& !+e o!+e pa!y as w+e$ !+e de&e$da$! a"!ed i$ ,oss a$d e#ide$! bad &ai!+ i$ e&%si$, !+e plai$!i&&?s plai$ly #alid %s! a$d dema$dable "laim. We do $o! see !+e pese$"e o& !+ese "i"%ms!a$"es i$ !+e pese$! "ase. As pe#io%sly dis"%ssed !+e pe!i!io$es? e&%sal !o pay !+e "+a$,e odes was based o$ a #alid ,o%$d 1 la"2 o& !+ei pio wi!!e$ appo#al.
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Moeo#e !+e Ci#il Code li2ewise eH%ies %$de A!. 4' !+a! /De#ey peso$ m%s! i$ !+e e9e"ise o& +is i,+!s a$d i$ !+e pe&oma$"e o& +is d%!ies a"! wi!+ %s!i"e ,i#e e#eyo$e +is d%e a$d obse#e +o$es!y a$d ,ood &ai!+.7 La$d a$2 +owe#e did $o! e#e$ bo!+e !o i$&om Al&edo !+a! i! was $o lo$,e appo#i$, +is ass%mp!io$ o& !+e Spo%ses Sy?s mo!,a,e. Ye! i! a"2$owled,ed +is i$!ees! i$ !+e loa$ w+e$ !+e ba$"+ +ead o& !+e ba$2 wo!e !o !ell +im !+a! +is da%,+!e?s loa$ +ad $o! bee$ paid. La$d a$2 made Al&edo belie#e !+a! wi!+ !+e payme$! o& >+> K5)))) +e wo%ld be able !o ass%me !+e mo!,a,e o& !+e Spo%ses Sy. T+e a"! o& e"ei#i$, payme$! wi!+o%! e!%$i$, i! w+e$ dema$ded is "o$!ay !o !+e ada,e o& ,i#i$, someo$e w+a! is d%e !o +im. T+e o%!"ome o& !+e appli"a!io$ wo%ld +a#e bee$ di&&ee$! +ad La$d a$2 &is! "o$d%"!ed !+e "edi! i$#es!i,a!io$ be&oe a""ep!i$, Al&edo?s payme$!. 8e wo%ld +a#e bee$ $o!i&ied !+a! +is ass%mp!io$ o& mo!,a,e +ad bee$ disappo#ed; a$d +e wo%ld $o! +a#e !a2e$ !+e &%!ile a"!io$ o& payi$, >+> K5)))). T+e po"ed%e La$d a$2 !oo2 i$ a"!i$, o$ Al&edo?s appli"a!io$ "a$$o! be said !o +a#e bee$ &ai a$d pope. As !o !+e "laim !+a! !+e !ial "o%! eed i$ applyi$, eH%i!y !o Al&edo?s "ase we +old !+a! Al&edo +ad $o o!+e emedy !o e"o#e &om La$d a$2 a$d !+e lowe "o%! popely e9e"ised i!s eH%i!y %isdi"!io$ i$ esol#i$, !+e "olle"!io$ s%i!. As we +a#e +eld i$ o$e "ase: EH%i!y as !+e "ompleme$! o& le,al %isdi"!io$ see2s !o ea"+ a$d "omple!e %s!i"e w+ee "o%!s o& law !+o%,+ !+e i$&le9ibili!y o& !+ei %les a$d wa$! o& powe !o adap! !+ei %d,me$!s !o !+e spe"ial "i"%ms!a$"es o& "ases ae i$"ompe!e$! !o do so. EH%i!y e,ads !+e spii! a$d $o! !+e le!!e !+e i$!e$! a$d $o! !+e &om !+e s%bs!a$"e a!+e !+a$ !+e "i"%ms!a$"e as i! is #aio%sly e9pessed by di&&ee$! "o%!s. Land Bank of the Philippines vs. Alfredo 3ng, ".R. #o. $-2&&, #ove()er +*, +$ @ama,es; moal; e9emplay. Moal dama,es ae mea$! !o "ompe$sa!e !+e "laima$! &o a$y p+ysi"al s%&&ei$, me$!al a$,%is+ &i,+! seio%s a$9ie!y besmi"+ed ep%!a!io$ wo%$ded &eeli$,s moal s+o"2 so"ial +%milia!io$ a$d simila i$%ies %$%s!ly "a%sed. Al!+o%,+ i$"apable o& pe"%$iay es!ima!io$ !+e amo%$! m%s! some+ow be popo!io$al !o a$d i$ appo9ima!io$ o& !+e s%&&ei$, i$&li"!ed. Moal dama,es ae $o! p%$i!i#e i$ $a!%e a$d wee $e#e i$!e$ded !o e$i"+ !+e "laima$! a! !+e e9pe$se o& !+e de&e$da$!. As &o e9emplay dama,es A!i"le ***' o& !+e Ci#il Code po#ides !+a! s%"+ dama,es may be imposed by way o& e9ample o "oe"!io$ &o !+e p%bli" ,ood. W+ile e9emplay dama,es "a$$o! be e"o#eed as a ma!!e o& i,+! !+ey $eed $o! be po#ed al!+o%,+ plai$!i&& m%s! s+ow !+a! +e is e$!i!led !o moal !empea!e o "ompe$sa!oy dama,es be&oe !+e "o%! may "o$side !+e H%es!io$ o& w+e!+e o $o! e9emplay dama,es s+o%ld be awaded. E9emplay dama,es ae imposed $o! !o e$i"+ o$e pa!y o impo#eis+ a$o!+e b%! !o se#e as a de!ee$! a,ai$s! o as a $e,a!i#e i$"e$!i#e !o "%b so"ially dele!eio%s a"!io$s. 8owe#e !+e same s!a!%!oy a$d %isp%de$!ial s!a$dads di"!a!e ed%"!io$ o& !+e amo%$!s o& moal a$d e9emplay dama,es &i9ed by !+e SEC. Ce!ai$ly !+ee is $o +adBa$dB&as! %le i$ de!emi$i$, w+a! wo%ld be a &ai a$d easo$able amo%$! o& moal a$d e9emplay dama,es si$"e ea"+ "ase m%s! be ,o#e$ed by i!s ow$ pe"%lia &a"!s. Co%!s ae ,i#e$ dis"e!io$ i$ de!emi$i$, !+e amo%$! wi!+ !+e limi!a!io$ !+a! i! s+o%ld $o! be palpably a$d s"a$dalo%sly e9"essi#e. I$deed i! m%s! be "omme$s%a!e !o !+e loss o i$%y s%&&eed. Oueensland8okyo !o((odities, Inc., et al. vs. ho(as "eorge, ".R. #o. $2+2+2, Septe()er %, +$ @ama,es; moal dama,es; "ompe$sa!oy dama,es; a!!o$ey?s &ees. Ta2e $o!e o& !+is "ase &o i!?s i$p%! o$ a!!o$ey?s &ees. Co$sidei$, !+a! pe!i!io$es a"!ed i$ ,ood &ai!+ i$ b%ildi$, !+ei +o%se o$ !+e s%be"! pope!y o& !+e espo$de$!Bspo%ses !+ee is $o basis &o !+e awad o& moal dama,es !o espo$de$!Bspo%ses. Li2ewise !+e Co%! dele!es !+e awad !o e,o$ o& "ompe$sa!oy dama,es a$d a!!o$ey?s &ees &o !+e li!i,a!io$ e9pe$ses e,o$ +ad i$"%ed as s%"+ amo%$!s wee $o! spe"i&i"ally payed &o i$ i!s A$swe !o pe!i!io$es? !+idBpa!y "omplai$!. U$de A!i"le **)0 o& !+e Ci#il Code a!!o$ey?s &ees a$d e9pe$ses o& li!i,a!io$ ae e"o#eable o$ly i$ !+e "o$"ep! o& a"!%al dama,es $o! as moal dama,es $o %di"ial "os!s. 8e$"e s%"+ m%s! be spe"i&i"ally payed &oas was $o! do$e i$ !+is "asea$d may $o! be deemed i$"opoa!ed wi!+i$ a ,e$eal paye &o /s%"+ o!+e elie& a$d emedy as !+is "o%! may deem %s! a$d eH%i!able.7 I! m%s! also be $o!ed !+a! aside &om !+e &ollowi$, !+e body o& !+e !ial "o%!?s de"isio$ was de#oid o& a$y s!a!eme$! e,adi$, a!!o$ey?s &ees. I$ Scott !onsultants Resource evelop(ent !orporation, Inc. v. !ourt of Appeals, we ei!ea!ed !+a! a!!o$ey?s &ees ae $o! !o be awaded e#ey !ime a pa!y wi$s a s%i!. T+e powe o& !+e "o%! !o awad a!!o$ey?s &ees %$de A!i"le **)0 o& !+e Ci#il Code dema$ds &a"!%al le,al a$d eH%i!able %s!i&i"a!io$; i!s basis "a$$o! be le&! !o spe"%la!io$ o "o$e"!%e. W+ee ,a$!ed !+e "o%! m%s! e9pli"i!ly s!a!e i$ !+e body o& !+e de"isio$ a$d $o! o$ly i$ !+e disposi!i#e po!io$ !+eeo& !+e le,al easo$ &o !+e awad o& a!!o$ey?s &ees. Luciano Briones and #elly Briones vs. ;ose /aca)agdal, e . /aca)agdal and 0ergon Realty Invest(ents !orporation, ".R. #o. $&''', August <, +$.
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saw &i! "o$&ide$! !+a! as a ba$2 i! wo%ld deli#e !+e amo%$!s !o w+ome#e !+ey die"!ed. I& i! &ell s+o! o& !+a! obli,a!io$ i! s+o%ld bea !+e espo$sibili!y &o !+e "o$seH%e$"es !o !+e deposi!os w+o li2e !+e espo$de$! s%&&eed pa!i"%la embaassme$! a$d dis!%bed pea"e o& mi$d &om !+e $e,li,e$"e i$ !+e +a$dli$, o& !+e a""o%$!s. I$ se#eal de"isio$s o& !+e Co%! !+e ba$2s de&e$da$!s !+eei$ wee made liable &o $e,li,e$"e e#e$ wi!+o%! s%&&i"ie$! poo& o& mali"e o bad &ai!+ o$ !+ei pa! a$d !+e Co%! awaded moal dama,es o& >4))))).)) ea"+ !ime !o !+e s%i$, deposi!os i$ pope "o$sidea!io$ o& !+ei ep%!a!io$ a$d !+ei so"ial s!a$di$,. T+e espo$de$! s+o%ld be similaly awaded &o !+e dama,e !o +is ep%!a!io$ as a$ a"+i!e"! a$d b%si$essma$. As &o !+e awad o& e9emplay dama,es a$d a!!o$ey?s &ees i! is $e#e o#eemp+asi-ed !+a! !+e p%bli" always elies o$ a ba$2?s po&essio$ o& dili,e$"e a$d me!i"%lo%s$ess i$ e$dei$, iepoa"+able se#i"e. I!s &ail%e !o e9e"ise dili,e$"e a$d me!i"%lo%s$ess waa$!ed i!s =.liabili!y &o #o. e9emplay dama,es Copoa!io$ #s. Calos Rom%lo C%- ".R. $&2*-, August $$, +$.a$d &o easo$able a!!o$ey?s &ees. Ci!y!%s! a$2i$, @ama,es; "ompe$sa!oy dama,es. I$ !+e "ase a! ba espo$de$!s o$ly !es!i&ied !o !+e &a"! !+a! !+e #i"!im Re,,ie =ab%a was a &es+ma$ !a2i$, %p I$d%s!ial E$,i$eei$, a! !+e Te"+$olo,i"al I$s!i!%!e o& !+e >+ilippi$es i$ C%bao. T+ee was $o e#ide$"e o& ,ood a"ademi" e"od e9!aB"%i"%la a"!i#i!ies a$d #aied i$!ees!s pese$!ed i$ "o%!. 8e$"e !+e Co%! o& Appeals was "oe"! w+e$ i! dele!ed !+e awad o& "ompe$sa!oy dama,es amo%$!i$, !o >*)))))).)) as !+e same is wi!+o%! a$y basis. 3/! !arriers, Inc. and ;erry AKalucas y Pitalino vs. Spouses Ro)erto !. #a)ua and Rosario . #a)ua, ".R. #o. $*%-2*, ;uly +, +$. @ama,es; dea!+ i$dem$i!y. @ea!+ i$dem$i!y +as bee$ &i9ed by %isp%de$"e a! >5)))).)). 3/! !arriers, Inc. and ;erry AKalucas y Pitalino vs. Spouses Ro)erto !. #a)ua and Rosario . #a)ua, ".R. #o. $*%-2*, ;uly +, +$. @ama,es; moal. I! m%s! be s!essed !+a! moal dama,es ae $o! i$!e$ded !o e$i"+ a plai$!i&& a! !+e e9pe$se o& !+e de&e$da$!. T+ey ae awaded !o allow !+e plai$!i&& !o ob!ai$ mea$s di#esio$ o am%seme$!s !+a! will se#e !o alle#ia!e !+e moal s%&&ei$, +eJs+e +as %$de,o$e d%e !o !+e de&e$da$!?s "%lpable a"!io$ a$d m%s! pe&o"e be popo!io$al !o !+e s%&&ei$, i$&li"!ed. T+%s ,i#e$ !+e "i"%ms!a$"es o& !+e "ase a! ba a$ awad o& >5)))).)) as moal dama,es is pope. 3/! !arriers, Inc. and ;erry AKalucas y Pitalino vs. Spouses Ro)erto !. #a)ua and Rosario . #a)ua, ".R. #o. $*%-2*, ;uly +, +$. @ama,es; moal; e9emplay; a!!o$ey?s &ees. A!i"le **4K o& !+e Ci#il Code de&i$es w+a! ae i$"l%ded i$ moal dama,es w+ile A!i"le **4' e$%mea!es !+e "ases w+ee !+ey may be e"o#eed. Moal dama,es ae i$ !+e "a!e,oy o& a$ awad desi,$ed !o "ompe$sa!e !+e "laima$! &o a"!%al i$%y s%&&eed a$d $o! !o impose a pe$al!y o$ !+e wo$,doe. /T+e peso$ "laimi$, moal dama,es m%s! po#e !+e e9is!e$"e o& bad &ai!+ by "lea a$d "o$#i$"i$, e#ide$"e &o !+e law always pes%mes ,ood &ai!+. I! is $o! e$o%,+ !+a! o$e meely s%&&eed sleepless $i,+!s me$!al a$,%is+ seio%s a$9ie!y as !+e es%l! o& !+e a"!%a!io$s o& !+e o!+e pa!y. I$#aiably s%"+ a"!io$ m%s! be s+ow$ !o +a#e bee$ will&%lly do$e i$ bad &ai!+ o wi!+ ill mo!i#e.7 3%! see /etropolitan Bank and rust !o(pany vs. Larry /ariKas, ".R. #o. $2-$&, ;uly +', +$ .6 I$ !+e same &as+io$ !o waa$! !+e awad o& e9emplay dama,es !+e wo$,&%l a"! m%s! be a""ompa$ied by bad &ai!+ a$d a$ awad o& dama,es wo%ld be allowed o$ly i& !+e ,%il!y pa!y a"!ed i$ wa$!o$ &a%d%le$! e"2less o male#ole$! ma$$e. As e,ads a!!o$ey?s &ees !+e law is "lea !+a! i$ !+e abse$"e o& s!ip%la!io$ a!!o$ey?s &ees may be e"o#eed as a"!%al o "ompe$sa!oy dama,es %$de a$y o& !+e "i"%ms!a$"es po#ided &o i$ A!i"le **)0 o& !+e Ci#il Code. 8a#i$, %led !+a! ose "ommi!!ed &a%d i$ ob!ai$i$, !i!le !o !+e disp%!ed pope!y !+e$ +e s+o%ld be liable &o bo!+ moal a$d e9emplay dama,es. Li2ewise si$"e pe!i!io$es wee "ompelled !o li!i,a!e !o po!e"! !+ei i,+!s a$d +a#i$, po#ed !+a! ose a"!ed i$ bad &ai!+ a!!o$ey?s &ees s+o%ld li2ewise be awaded. Spouses ederico 0alen5uela and Lu5 Buena80alen5uela 0s. Spouses ;ose
/ano , ;r. and Rosanna Reyes8/ano, ".R. #o. $2+'$$, ;uly -, +$. @ama,es; moal dama,es $eed $o! be a!!e$ded by bad &ai!+; e9emplay dama,es; a!!o$ey?s &ees. A deposi!o +as !+e i,+! !o e"o#e easo$able moal dama,es e#e$ i& !+e ba$2?s $e,li,e$"e may $o! +a#e bee$ a!!e$ded wi!+ mali"e a$d bad &ai!+ i& !+e &ome s%&&eed me$!al a$,%is+ seio%s a$9ie!y embaassme$! a$d +%milia!io$. Moal dama,es ae $o! mea$! !o e$i"+ a "omplai$a$! a! !+e e9pe$se o& de&e$da$!. I! is o$ly i$!e$ded !o alle#ia!e !+e moal s%&&ei$, s+e +as %$de,o$e. T+e awad o& e9emplay dama,es is %s!i&ied o$ !+e o!+e +a$d w+e$ !+e a"!s o& !+e ba$2 ae a!!e$ded by mali"e bad &ai!+ o ,oss $e,li,e$"e. T+e awad o& easo$able a!!o$ey?s &ees is pope w+ee e9emplay dama,es ae awaded. I! is pope w+ee deposi!os ae "ompelled !o li!i,a!e !o po!e"! !+ei i$!ees!. /etropolitan Bank and rust !o(pany vs. Larry /ariKas, ".R. #o. $2-$&, ;uly +', +$.
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wi!+ "e!ai$!y. Tempea!e dama,es m%s! be easo$able %$de !+e "i"%ms!a$"es. he 9eirs of Redentor !o(pleto and ?lpidio A)iad vs. Sgt. A(ando !. Al)ayda, ;r., ".R. #o. $2++, ;uly ', +$. @ama,es; amo%$! i$ !o! i$!e&ee$"e. T+e %le is !+a! !+e de&e$da$! &o%$d ,%il!y o& i$!e&ee$"e wi!+ "o$!a"!%al ela!io$s "a$$o! be +eld liable &o moe !+a$ !+e amo%$! &o w+i"+ !+e pa!y w+o was i$d%"!ed !o bea2 !+e "o$!a"! "a$ be +eld liable. Respo$de$!s wee !+ee&oe "oe"!ly +eld liable &o !+e bala$"e o& pe!i!io$e?s "ommissio$ &om !+e sale. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG vs. /orti(er . !ordero7/orti(er . !ordero vs. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG, et al., ".R. #o. $'*2<7".R. #o, $'*2*2. /ay *, +$. @ama,es; a!!o$ey?s &ees. See 8i"oblo M. Ca!ly 3de"eased6 s%b!i!%!ed by +is wi&e Lo%des A. Ca!ly #s. William =a#ao e! al. ".R. #o. $'2+<-, /ay &, +$ abo#e. @ama,es; moal; e9emplay; a!!o$ey?s &ees. Respo$de$!s +a#i$, a"!ed i$ bad &ai!+ moal dama,es may be e"o#eed %$de A!i"le **4' o& !+e Ci#il Code. O$ !+e o!+e +a$d !+e eH%ieme$!s o& a$ awad o& e9emplay dama,es ae: 346 !+ey may be imposed by way o& e9ample i$ addi!io$ !o "ompe$sa!oy dama,es a$d o$ly a&!e !+e "laima$!?s i,+! !o !+em +as bee$ es!ablis+ed; 3*6 !+a! !+ey "a$$o! be e"o#eed as a ma!!e o& i,+! !+ei de!emi$a!io$ depe$di$, %po$ !+e amo%$! o& "ompe$sa!oy dama,es !+a! may be awaded !o !+e "laima$!; a$d 3(6 !+e a"! m%s! be a""ompa$ied by bad &ai!+ o do$e i$ a wa$!o$ &a%d%le$! oppessi#e o male#ole$! ma$$e. T+e awad o& e9emplay dama,es is !+%s i$ ode. 8owe#e we &i$d !+e s%ms awaded by !+e !ial "o%! as moal a$d e9emplay dama,es as ed%"ed by !+e CA s!ill e9"essi#e %$de !+e "i"%ms!a$"es. Moal dama,es ae mea$! !o "ompe$sa!e a$d alle#ia!e !+e p+ysi"al s%&&ei$, me$!al a$,%is+ &i,+! seio%s a$9ie!y besmi"+ed ep%!a!io$ wo%$ded &eeli$,s moal s+o"2 so"ial +%milia!io$ a$d simila i$%ies %$%s!ly "a%sed. Al!+o%,+ i$"apable o& pe"%$iay es!ima!io$ !+e amo%$! m%s! some+ow be popo!io$al !o a$d i$ appo9ima!io$ o& !+e s%&&ei$, i$&li"!ed. Moal dama,es ae $o! p%$i!i#e i$ $a!%e a$d wee $e#e i$!e$ded !o e$i"+ !+e "laima$! a! !+e e9pe$se o& !+e de&e$da$!. T+ee is $o +adBa$dB&as! %le i$ de!emi$i$, w+a! wo%ld be a &ai a$d easo$able amo%$! o& moal dama,es si$"e ea"+ "ase m%s! be ,o#e$ed by i!s ow$ pe"%lia &a"!s. Tial "o%!s ae ,i#e$ dis"e!io$ i$ de!emi$i$, !+e amo%$! wi!+ !+e limi!a!io$ !+a! i! /s+o%ld $o! be palpably a$d s"a$dalo%sly e9"essi#e.7 I$deed i! m%s! be "omme$s%a!e !o !+e loss o i$%y s%&&eed. e"a%se e9emplay dama,es ae awaded a!!o$ey?s &ees may also be awaded i$ "o$so$a$"e wi!+ A!i"le **)0 346. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG vs. /orti(er . !ordero7/orti(er . !ordero vs. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG, et al., ".R. #o. $'*2<7".R. #o, $'*2*2. /ay *, +$. @ama,es; soliday liabili!y. Respo$de$!?s a,%me$! !+a! +e "a$$o! be +eld liable solidaily wi!+ !+e o!+e pa!y &o a"!%al moal a$d e9emplay dama,es as well as a!!o$ey?s &ees awaded !o espo$de$! si$"e $o law o "o$!a"! po#ided &o soliday obli,a!io$ i$ !+ese "ases is bee&! o& mei!. Co$&omably wi!+ A!i"le *4'< o& !+e Ci#il Code !+e espo$sibili!y o& !wo o moe peso$s w+o ae liable &o !+e H%asiBdeli"! is soliday. Obli,a!io$s aisi$, &om !o! ae by !+ei $a!%e always soliday. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG vs. /orti(er . !ordero7/orti(er . !ordero vs. Allan !. "o, doing )usiness under the na(e and style of FA!" ?Epress LinerG, et al., ".R. #o. $'*2<7".R. #o, $'*2*2. /ay *, +$. @ama,es; a"!%al dama,es d%e !o loss o& i$"ome. T+e lease "o$!a"! "lealy po#ides !+a! pe!i!io$e leased !o espo$de$! !+e ,o%$d &loo o& +e eside$!ial +o%se &o a !em o& o$e yea "omme$"i$, &om K %ly 4''5. T+%s !+e lease "o$!a"! wo%ld e9pie o$ly o$ K %ly 4''. 8owe#e pe!i!io$e s!a!ed ee"!i$, espo$de$!?s lod,es i$ Ma"+ 4'' by i$&omi$, !+em !+a! !+e lease "o$!a"! was o$ly %$!il 45 Apil 4''. Clealy pe!i!io$e?s a"! o& ee"!i$, espo$de$!?s lod,es es%l!ed i$ espo$de$! losi$, i$"ome &om +e lod,es. 8e$"e i! was pope &o !+e !ial "o%! a$d !+e appella!e "o%! !o ode pe!i!io$e !o pay espo$de$! a"!%al dama,es i$ !+e amo%$! o& ><5))). oris 4. Sun)anun vs. Aurora B. "o, ".R. #o. $'<+%, e)ruary +, +$ @ama,es; a"!%al dama,es; loss o& ea$i$, "apa"i!y. T+e i$dem$i!y &o loss o& ea$i$, "apa"i!y o& !+e de"eased is po#ided &o by A!i"le **) o& !+e Ci#il Code. Compe$sa!io$ o& !+is $a!%e is awaded $o! &o loss o& ea$i$,s b%! &o loss o& "apa"i!y !o ea$ mo$ey. As a %le do"%me$!ay e#ide$"e s+o%ld be pese$!ed !o s%bs!a$!ia!e !+e "laim &o dama,es &o loss o& ea$i$, "apa"i!y. y way o& e9"ep!io$ dama,es &o loss o& ea$i$, "apa"i!y may be awaded despi!e !+e abse$"e o& do"%me$!ay e#ide$"e w+e$: 346 !+e de"eased is sel&Bemployed a$d ea$i$, less !+a$ !+e mi$im%m wa,e %$de "%e$! labo laws i$ w+i"+ "ase %di"ial $o!i"e may be !a2e$ o& !+e &a"! !+a! i$ !+e de"eased?s li$e o& wo2 $o do"%me$!ay e#ide$"e is a#ailable; o 3*6 !+e de"eased is employed as a daily wa,e wo2e ea$i$, less !+a$ !+e mi$im%m wa,e %$de "%e$! labo laws. I$ !+is "ase !+e e"ods s+ow
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$e"essay &o !+e "ea!io$ o& s%"+ ea$i$,s o i$"ome less li#i$, a$d o!+e i$"ide$!al e9pe$ses. I$ !+e abse$"e o& do"%me$!ay e#ide$"e i! is easo$able !o pe, $e"essay e9pe$ses &o !+e lease a$d opea!io$ o& !+e ,asoli$e s!a!io$ a! 0) pe"e$! o& !+e ,oss i$"ome a$d pe, li#i$, e9pe$ses a! 5) pe"e$! o& !+e $e! i$"ome 3,oss i$"ome less $e"essay e9pe$ses6. Philippine 9a@k !orporation vs. 0ivian an Lee, ".R. #o. $''%'-, e)ruary $', +$. @ama,es; e9emplay dama,es; a!!o$ey?s &ees. E9emplay dama,es may be awaded w+e$ a wo$,&%l a"! is a""ompa$ied by bad &ai!+ o w+e$ !+e de&e$da$! a"!ed i$ a wa$!o$ &a%d%le$! e"2less oppessi#e o male#ole$! ma$$e w+i"+ wo%ld %s!i&y a$ awad o& e9emplay dama,es %$de A!i"le **(* o& !+e Ci#il Code. Si$"e !+e awad o& e9emplay dama,es is pope i$ !+is "ase a!!o$ey?s &ees a$d "os! o& !+e s%i! may also be e"o#eed as po#ided %$de A!i"le **)0 o& !+e Ci#il Code. oris 4. Sun)anun vs. Aurora B. "o, ".R. #o. $'<+%, e)ruary +, +$ . @ama,es; moal dama,es. Moal dam,es ae $o! i$!e$ded !o e$i"+ a plai$!i&& a! !+e e9pe$se o& !+e de&e$da$!. T+ey ae awaded !o allow !+e plai$!i&& !o ob!ai$ mea$s di#esio$s o am%seme$!s !+a! will se#e !o alle#ia!e !+e moal s%&&ei$, +eJs+e +as %$de,o$e d%e !o !+e de&e$da$!?s "%lpable a"!io$ a$d m%s! pe&o"e be popo!io$al !o !+e s%&&ei$, i$&li"!ed. Philippine 9a@k !orporation vs. 0ivian an Lee, ".R. #o. $''%'-, e)ruary $', +$. @ama,es; moal dama,es. I$ !+is "ase moal dama,es may be e"o#eed %$de A!i"le **4' a$d A!i"le ***) o& !+e Ci#il Code i$ ela!io$ !o A!i"le *4. T+e pe!i!io$e?s a"! o& ee"!i$, espo$de$!?s lod,es !+ee mo$!+s be&oe !+e lease "o$!a"! e9pied wi!+o%! #alid easo$ "o$s!i!%!es bad &ai!+. W+a! a,,a#a!es !+e si!%a!io$ was !+a! pe!i!io$e did $o! i$&om espo$de$! w+o was !+e$ wo2i$, i$ 8o$, No$, abo%! pe!i!io$e?s pla$ !o peB!emi$a!e !+e lease "o$!a"! a$d e#i"! espo$de$!?s lod,es. Moal dama,es may be awaded w+e$ !+e bea"+ o& "o$!a"! was a!!e$ded wi!+ bad &ai!+. oris 4. Sun)anun vs. Aurora B. "o, ".R. #o. $'<+%, e)ruary +, +$ @ama,es; moal dama,es. =o$e!+eless !+e pe!i!io$ is i$ pa! mei!oio%s. T+ee is a $eed !o s%bs!a$!ially ed%"e !+e moal dama,es awaded by !+e appella!e "o%!. W+ile "o%!s ae ,i#e$ dis"e!io$ !o de!emi$e !+e amo%$! o& dama,es !o be awaded i! is limi!ed by !+e pi$"iple !+a! !+e amo%$! awaded s+o%ld $o! be palpably a$d s"a$dalo%sly e9"essi#e. Moal dama,es ae $ei!+e i$!e$ded !o impose a pe$al!y !o !+e wo$,doe $o !o e$i"+ !+e "laima$!. Ta2i$, i$!o "o$sidea!io$ !+e &a"!s a$d "i"%ms!a$"es a!!e$da$! !o !+e "ase a$ awad !o espo$de$!s o& >5))))) i$s!ead o& >*)))))) as moal dama,es is !o !+e Co%! easo$able. #orth@est Airlines, Inc. vs. Spouses ?d@ard ;. 9eshan and #eilia L. 9eshan, et al., G.R. #o. $2-$$2, e)ruary <, +$ . @ama,es; moal; e9emplay; a!!o$ey?s &ees. Si$"e a$ awad o& moal dama,es is pedi"a!ed o$ a "a!e,oi"al s+owi$, &om !+e "laima$! !+a! emo!io$al a$d me$!al s%&&ei$,s wee a"!%ally e9peie$"ed abse$! a$y e#ide$"e !+eeo$ i$ !+e pese$! "ase !+e awad m%s! be disallowed. A$d so !oo m%s! !+e awad o& a!!o$ey?s &ees abse$! a$ i$di"a!io$ i$ !+e !ial "o%!?s de"isio$ o& !+e &a"!%al basis !+eeo& !+e awad +a#i$, bee$ meely s!a!ed i$ !+e disposi!i#e po!io$. >ae$!+e!i"ally w+ile espo$de$! payed i$ +e "omplai$! &o !+e awad o& a!!o$ey?s &ees !+ee is $o s+owi$, !+a! s+e s%bmi!!ed a$y do"%me$!ay e#ide$"e i$ s%ppo! !+eeo&. /etropolitan Bank and rust !o. and Solid)ank !orporation vs. Bernardita 9. Pere5, represented )y her Attorney in fact Patria 9. Pere5, ".R. #o. $%$%*+, e)ruary &, +$. @ama,es; $e,li,e$"e. =e#e!+eless !+is &a"! does $o! a&&e"! !+e &i$di$, o& !+e !ial "o%! !+a! pe!i!io$e?s b%s di#e Ma,ai!o A#ila was ,%il!y o& simple $e,li,e$"e as a&&imed by !+e appella!e "o%!. Foeseeabili!y is !+e &%$dame$!al !es! o& $e,li,e$"e. To be $e,li,e$! a de&e$da$! m%s! +a#e a"!ed o &ailed !o a"! i$ s%"+ a way !+a! a$ odi$ay easo$able ma$ wo%ld +a#e eali-ed !+a! "e!ai$ i$!ees!s o& "e!ai$ peso$s wee %$easo$ably s%be"!ed !o a ,e$eal b%! de&i$i!e "lass o& is2s. I$ !+is "ase !+e b%s di#e w+o was di#i$, o$ !+e i,+! side o& !+e oad aleady saw !+e mo!o"y"le o$ !+e le&! side o& !+e oad be&oe !+e "ollisio$. 8owe#e +e did $o! !a2e !+e $e"essay pe"a%!io$ !o slow dow$ b%! do#e o$ a$d b%mped !+e mo!o"y"le a$d also !+e passe$,e eep pa2ed o$ !+e le&! side o& !+e oad s+owi$, !+a! !+e b%s was $e,li,e$! i$ #eei$, !o !+e le&! la$e "a%si$, i! !o +i! !+e mo!o"y"le a$d !+e passe$,e eep. Philippine 9a@k !orporation vs. 0ivian an Lee, ".R. #o. $''%'-, e)ruary $', +$. @ama,es; !empea!e dama,es. U$de A!. ***< o& !+e Ci#il Code !empea!e dama,es /may be e"o#eed w+e$ !+e "o%! &i$ds !+a! some pe"%$iay loss +as bee$ s%&&eed b%! i!s amo%$! "a$$o! &om !+e $a!%e o& !+e "ase be po#ed wi!+ "e!ai$!y.7 T+e "os! o& !+e epai o& !+e mo!o"y"le was payed &o by espo$de$! i$ +e Complai$!. 8owe#e !+e e#ide$"e pese$!ed was meely a ob es!ima!e o& !+e "os! o& !+e mo!o"y"le?s epai amo%$!i$, !o >4K 0*'.)). T+e Co%! o& Appeals ap!ly +eld !+a! !+ee was $o do%b! !+a! !+e dama,e "a%sed o$ !+e mo!o"y"le was d%e !o !+e $e,li,e$"e o& pe!i!io$e?s di#e. I$ !+e abse$"e o& "ompe!e$! poo& o& !+e a"!%al dama,e "a%sed o$ !+e mo!o"y"le o !+e a"!%al "os! o& i!s epai !+e awad o& !empea!e
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"o%!?s %li$, ed%"i$, !+e a!!o$ey?s &ee &om 4) !o 4 based o$ !+e &ollowi$, easo$s: 346 a!!o$ey?s &ee is $o! esse$!ial !o !+e "os! o& boowi$, b%! a mee i$"ide$! o& "olle"!io$; 3*6 4 is %s! a$d adeH%a!e be"a%se !+e ba$2 +ad aleady "+a,ed &oe"los%e e9pe$ses; 3(6 a!!o$ey?s &ee o& 4) o& !+e !o!al amo%$! d%e is o$eo%s "o$sidei$, !+e o!e e&&o! !+a! ,oes i$!o e9!a%di"ial &oe"los%es. Bank of the Philippines Islands, Inc. vs. Spouses #or(an and Angelina =u, et al., ".R. #o. $%*$++, ;anuary +, +$. @ama,es; moal a$d e9emplay; &a%d i$ "o$!a"!. T+e b%ye de&a%ded !+e pe!i!io$es i$ +is a"!s o& iss%i$, a wo!+less "+e"2 a$d epese$!i$, !o !+em !+a! !+e "+e"2 was &%$ded "ommi!!i$, i$ !+e po"ess a s%bs!a$!ial bea"+ o& +is obli,a!io$ as a b%ye. Fo s%"+ &a%d%le$! a"!s !+e b%ye is liable &o moal dama,es a$d e9emplay dama,es %$de A!i"le ***) a$d **(* a$d **(e!i!io$e a,%es !+a! ass%mi$, a,%e$do !+a! "ompe$sa!oy dama,es +ad bee$ awaded !+e same "o$!a#e$ed A!i"le **(* o& !+e Ci#il Code w+i"+ po#ides !+a! i$ "o$!a"!s o H%asiB"o$!a"!s !+e "o%! may awad e9emplay dama,es o$ly i& !+e de&e$da$! a"!ed i$ a wa$!o$ &a%d%le$! e"2less oppessi#e o male#ole$! ma$$e. Si$"e so pe!i!io$e "o$"l%des !+ee was $o &i$di$, !+a! i! a"!ed i$ a wa$!o$ &a%d%le$! e"2less oppessi#e o male#ole$! ma$$e i! is $o! liable &o e9emplay dama,es. T+e a,%me$! &ails. To ei!ea!e pe!i!io$e?s liabili!y is based $o! o$ "o$!a"! o H%asiB"o$!a"! b%! o$ H%asiBdeli"! si$"e !+ee is $o peBe9is!i$, "o$!a"!%al ela!io$ be!wee$ !+e pa!ies. A!i"le **(4 o& !+e Ci#il Code w+i"+ po#ides !+a! i$ H%asiBdeli"! e9emplay dama,es may be ,a$!ed i& !+e de&e$da$! a"!ed wi!+ ,oss $e,li,e$"e !+%s applies. Fo /,oss $e,li,e$"e7 implies a wa$! o abse$"e o& o &ail%e !o e9e"ise e#e$ sli,+! "ae o dili,e$"e o !+e e$!ie abse$"e o& "ae e#i$"i$, a !+o%,+!less dise,ad o& "o$seH%e$"es wi!+o%! e9e!i$, a$y e&&o! !o a#oid !+em. /etropolitan Bank and rust !o(pany, etc. vs. BA inance !orporation and /alayan Insurance !o, Inc., ".R. #o. $2--&+, ece()er *, +-.
