ROWENA R. CABAS Obligations and Contracts
G.R. No. 45993. May 11, 1939 plaintiff-appellee ppellee Geronimo Santiago, Jr., plaintiff-a Fabian R. Millar, a Manager o! t"e #"ili$$ine C"arit% S&ee$ta'e O!!i(e, defendantdefendant-appellant appellant FAC)S OF )*E CASE+
The case is an appeal from judgment of the Court of irst !nst !n stan ance ce of Ma Mani nila la "h "hich ich st stem emme med d ou outt fr from om th the e sa said id Co Cour urt# t#s s decisi dec ision on orde orderin ring g the def defend endant ant-a -appe ppellan llantt to pa pay y the pla plaint intiff iff-appellee the sum of $%&'.(9 corresponding to t"o units of Tic)et *o. '+93'+' "hich "on the prie of $9%1.1 in the s"eepsta)es dra" held on May 1, 193&. The plaintiff bought ten boo)lets of s"eepsta)es tic)et from the th e $h $hil ilip ippi pine ne Ch Char arit ity y /" /"ee eeps psta ta)e )es s Of Offi fice ce as an ag agen ent. t. Th The e "inning "inni ng tic)et "as pre0ented pre0ented to Carme Carmen n arci arcia a "ho bought t"o units of the same. The tic)ets got lost and plaintiff though his counsel sent to the defendant a notice of loss on May +', 193&. 2fter"ards, they filed the complaint "hich "as decided in fa0or of the plaintiff, hence the appeal. SS-E+ . W"et W"et"er "er or not t"ere i a (on/ (on/itio ition n $re(e/ent $re(e/ent to t"e $a%ment o! t"e $ri0e1 R-2NG+ . e e.. )"e S$rem S$reme e Co Cort rt obere obere/ / t"e rling rling o! t"e tria tr iall (o (or rtt &" &"en en t" t"e e la latt tter er "e "el/ l/ t" t"at at t" t"e e &i &inn nnin ing g )i('et No. 6793676 bore t"e notation t"at $ri0e o! ti(' ti ('et et o ol/ l/ lo lo(a (all ll% % &i &ill ll be $a $ai/ i/ to "o "ol/ l/er er o! ti ti(' ('et et $on $ on rr rren en/e /er r o! t"e a ame me,, "e "en( n(e, e, a (o (on/ n/it itio ion n $re(e/ent an/ t"e (ontra(t i aleator%.
FRS) 8SON :G.R. No. 45993. Ma% , 939.; GERONMO SAN)AGO, JR., Plaintiff-Appellee, . FABAN R. M22AR, a Manager o! t"e #"ili$$ine C"arit% S&ee$ta'e, Defendant-Appellant . Ramon 8io'no !or Appellant . J. E. Blan(o !or Appellee. S22AB-S 1.
/44$/T254/ T!C54T/6 CO*7!T!O* $84C474*T TO T4 $2:M4*T O $8!;4. < The defendant did not introduce any e0idence, oral or documentary, and e0idently relied on the legal defense set up in his amended ans"er that the surrender of the s"eepsta)es tic)et "as a condition precedent to the payment of its prie to the holder of said tic)et, and that =no alegandose en la demanda >ue el demandante ha presentado el tic)et para su cobro, el demandante carece de causa de accion.= crala" 0irtua1
a" library
+. !7.6 !7.6 2$$?!C2T!O* O 4*482? $8!*C!$?4/. < The >uestion thus presented is ne" in this jurisdiction and no enlightenment could be had from foreign sources. o"e0er, the present contro0ersy may be disposed of by the application of general principles, ha0ing in 0ie" the difficulties pointed out in his decision by the trial court. Tic)et *o. '+93'+' bears the notation therein that =pries of tic)ets sold locally "ill be paid to holder of tic)et upon surrender of same.= This means that to collect the prie the tic)et must be presented. 3. !7.6 !7. @ /A884*748 O T4 T!C54T/. < The presentation or surrender of the tic)et i9 a condition precedent of payment. The contract is aleatory in nature Bart. 1&9', Ci0il Code, and the contracting parties may establish any agreements, terms and conditions they may deem ad0isable, pro0ided they are not contrary to la", morals, or public order Bart. 1+((, Ci0il Code. %. !7.6 O8C4 O OD?!2T!O*/ 28!/!* 8OM CO*T82CT/.
< Obligations arising from contract shall ha0e the force of la" bet"een the contracting parties and must be performed in accordance "ith their stipulations Bart. 1'91, Ci0il Code6 anlon 0. aussermann and Deam, %1 $hil., +&. 8ECSON 2A-RE2, J.+
This is an appeal from a judgment of the Court of irst !nstance of Manila ordering the defendant abian 8. Millar, as manager of the $hilippine Charity /"eepsta)es to pay to the plaintiff, eronimo /antiago, jr., the sum of $%&'.(9 corresponding to t"o units of tic)et *o. '+93'+' "hich "on a prie of $9%1.1 in the s"eepsta)e dra" held in the City of Manila on May 1, 193&. !t is admitted that the defendant, abian 8. Millar, "as at the time the general manager of the $hilippine Charity /"eepsta)e Office6 that on ebruary 1, 193& the plaintiffs, eronimo /antiago, jr., as agent *o. 39, purchased from the treasurer of the $hilippine charity /"eepsta)e Office ten boo)lets of tic)ets numbered serially from '+9+9' to '+93'+&, both inclusi0e, for the s"eepsta)e dra" and race held on May 1, 193&6 that among the "inning tic)ets in the said dra" "as tic)et *o. '+93'+', included in those bought by the plaintiff, its prie being $9%1.16 that the payment of the pries "on by certain tic)ets, including said tic)et *o. '+93'+', "as set for May +1, 193&6 that the tic)ets for the said s"eepsta)e dra" and race contained a condition that =pries of tic)ets sold locally "ill be paid to holder of tic)et upon surrender of same.= crala"
0irtua1a"
library
The proof for the plaintiff tends to establish that Carmen arcia, an employee in the *ational 7rug /tore "here the plaintiff offered for sale his s"eepsta)e tic)ets, bought t"o units Bor one-half of tic)et *o. '+93'+' and, on ebruary +', 193&, presented the plaintiff "ith them on the occasion of the latter#s birthday, and that thereafter, or on May 1, 193&, the said t"o units "ere lost. The fact is further admitted in this case that on May +', 193&, the defendant recei0ed a letter from the attorney of the plaintiff gi0ing notice of the loss. On the same day, May +', 193&, the plaintiff filed the present complaint in the Court of irst !nstance of Manila Bci0il case *o. (13(', praying for the issuance of a "rit f preliminary injunction to restrain the defendant and his gents from paying the prie corresponding to the t"o units of the tic)et in >uestion
B*o. '+93'+' to any person until further order of said court, and see)ing a judicial declaration that the plaintiff is the o"ner of said t"o units and conse>uently, solely entitled to collect the corresponding prie of $%&'.(9. Thereupon, a bond in the sum of $1'' ha0ing been filed by the plaintiff, the Court of irst !nstance of Manila issued the "rit of preliminary injunction prayed for. The defendant did not introduce any e0idence, oral or documentary, and e0idently relied on the legal defense set up in his amended ans"er that the surrender of the s"eepsta)e tic)et "as a condition precedent to the payment of its prie to the holder of said tic)et, and that =no alegandose en la demanda >ue el demandante ha presentado el tic)et para su cobro, el demandante carece de causa de accion.= crala" 0irtua1a" library
2fter trial, the Court of irst !nstance of Manila rendered, on *o0ember +', 193&, the judgment "hich is the subject of the present appeal. The >uestion thus presented is ne" in this jurisdiction and no enlightenment could be had from foreign sources. e are of the opinion, ho"e0er, that the present contro0ersy may be disposed of by the application of general principles, ha0ing in 0ie" the difficulties pointed out in his decision by the trial court. Tic)et *o. '+93'+' bears the notation therein that =pries of tic)ets sold locally "ill be paid to holder of tic)et upon surrender of same.= This means that to collect the prie the tic)et must be presented. The presentation or surrender of the tic)et i a condition precedent of payment. The contract is aleatory in nature Bart. 1&9', Ci0il Code, and the contracting parties may establish any agreements, terms and conditions they may deem ad0isable, pro0ided they are not contrary to la", morals, or public order Bart. 1+((, Ci0il Code. Obligations arising from contract shall ha0e the force of la" bet"een the contracting parties and must be performed in accordance "ith their stipulations Bart. 1'91, Ci0il Code6 anlon 0. aussermann and Deam, %1 $hil., +&. The judgment of the lo"er court is hereby re0ersed, "ithout pronouncement regarding costs. /o ordered. 20anceEa, concur.
C.J.,
!mperial, 7ia, Concepcion, and Moran, JJ.,
Se$arate O$inion
F!??2-842?, J., dissenting@
chanrob1es 0irtual 1a" library
The fact that the s"eepsta)e tic)et in >uestion bears on its face the notation that =pries of tic)ets sold locally "ill be paid to holder of tic)ets upon surrender of same= does not increase the
obligation of the holder to produce the tic)et "hen demanding payment of the prie "on by it, inasmuch as the tic)et !tself is the best e0idence of the obligation of the $hilippine Charity /"eepsta)es to pay the said prie, and it must be surrendered "hether the surrender thereof be stipulated or not. 2fter the dra"ing of lots, the holder of a "ining tic)et becomes a creditor and the party "ho has issued said tic)et a debtor for the money "on. !n good conscience and m la" the loss of the e0idence of indebtedness does not depri0e the creditor of his right to collect the amount due, nor does it relie0e the debtor from his obligation to pay. !t is on this principle of e>uity that the la" "as established the best 2na secondary e0idence rule. The result of the decision of the majority "ill be that in the case of a debt arising from a lottery 0enture, the holder of the "inning tic)et cannot establish by secondary e0idence its contents in case it should be lost or destroyed against the "ill of the holder6 "hich is at 0ariance "ith the rule obtaining in the collection of ordinary debts e0idenced by "ritten instruments, in "hich creditors may establish the contents of the instruments by means of secondary e0idence and collect the amounts due in case the original is lost or destroyed. =The loss or unintentional destruction of a "ritten instrument in no "ay effects the liabilities of the parties to it, or the 0alidity or sufficiency of the transaction of "hich !t is the e0idence, e0en though due to the negligence of the o"ner6 nor does it change the nature of the demand, eGcept "here the receipt or mailing of the lost instrument constituted payment. The person liable thereon is not relie0ed from his liabilities by the loss of the instrument. . . .= B3 Corpus Huris, sec. +, page +%9. ! am therefore to the opinion that the contents of a "inning s"eepsta)e tic)et "hich has been lost or destroyed before the prie is collected, may be established by secondary e0idence and the holder thereof collect the prie.
