Case Ansay v. DBP GR L-13667 April 29, 1960 Facts Issue Ansay, et al filed against BOD of the National Development Company in the CFI a complaint praying for 20% Christmas bonus for the years 1954 to 1955. Whether or not such moral obligation/natural obligation produces a legal obligation on the part of NDC to give Christmas bonus to Ansay, et al Dismissed because: a) A bonus is an act of liberality (not within the judicial powers of the Court) b) Ansay, et al admitted that giving of Christmas bonus is a moral obligation of the respondents, however, the Court has no power to compel a party to comply with a moral obligation Ruling (with Atty’s notes) No. An element of natural obligation before it can be cognizable by the court is “voluntary fulfillment by the obligor.” Retention can be ordered only after there has been voluntary performance. Art 1423, NCC: “...Natural obligations, not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof.” A motion for reconsideration was denied. Hence, this appeal. Atty’s notes: Misplaced ang interpretation nila Ansay sa natural obligations. Obviously, walang natural obligation dito dahil walang voluntary fulfillment. Voluntary fulfillment muna (on the part of the obligor/debtor/passive subj), bago magkaroon ng right of retention (on the part of the obligee/creditor/active subj). Ang gusto nila Ansay magbigay ng Christmas bonus ang NDC na hindi naman legally demandable. Hindi ganon ang natural obligation. DBP v. Adil February 10, 1940 - Sps. Patricio Confesor and 1. Whether or not first 1. First p.note already prescribed? GR L-48889 May 11, 1988 Jovito Villafuerte (debtor/passive subj) executed a promissory note for the payment of loan obtained from DBP (creditor/active subj), payable in 10 equal annual amorts p.note has already prescribed 2. If yes, whether or not second p.note is valid Prescriptive period: 10 years After the prescriptive period, p.note remained outstanding and unpaid. April 11, 1961 - second p.note expressly acknowledging said loan with a promise to pay the same on or before June 15, 1961 was executed by the spouses. June 15, 1961 - p.note remained outstanding and unpaid September 11, 1970 - DBP filed a case against the spouses for the payment of the loan Heirs of Roldan v. Heirs of Roldan and Heirs of Magtulis GR 202578 September 27, 2017 Decedent Natalia Magtulis owned an agricultural land in Kalibo, Aklan. Her heirs included Gilberto Roldan and Silvela Roldan (legitimate) and allegedly, Leopoldo Magtulis (illegitimate). After her death in 1961, Natalia left the lot to her children. However, only Gilberto and his heirs took possession of the property. May 19, 2003 - respondents filed before the RTC a complaint for partition and damages against petitioners. Latter refused to yield the property on the ground that Silvela and heirs already sold her share to Gilberto. Whether or not prescription and laches bar respondents from claiming co-ownership over the parcel of land Yes (counting from February 10, 1940). Action upon a written contract must be brought within 10 years ( Art. 1144, NCC). 2. Atty’s notes: Execution of the second p.note which acknowledged/recognizing the existence of the obligation contained in the first p.note, binuhay ni second p.note ang nagprescribe na debt under first p.note. Nagkaroon ng bagong obligation na mayroong bagong prescriptive period which is 10 years, now based on the date of execution of second p.note (Refer to Art. 1112, NCC) Remember class: PWEDENG I-WAIVE ang prescription No. “Prescription cannot be appreciated against the co-owners of a property, absent any conclusive act of repudiation made clearly known to the other co-owners.” There is a need to determine the veracity of factual matters such as the date when the period to bring the action commenced to run. The determination is factual in nature. Atty’s notes: You need to prove laches. Even yung prescription, kung sino ang nag-aassert ng prescription and laches, siya ang magpprove. So kailangan ng evidence and supporting documents to prove the same. Laches and prescription, lalo na ang laches, you are losing a right. Nawawalan ka ng power to enforce a right because of prescription. So kinakailangan, patunayan ng nag-aassert ng prescription and laches, na they indeed exist. Ang principle dito is you have to substantiate your claim. Cruz v. JM Tuason & Co GR L-23749 April 29, 1977 Appellant Faustino Cruz made permanent improvements on a parcel of land in relation to an agreement entered into with the family of Telesforo Deudor who laid claim on the land in question on the strength of an “informacion posesoria.” However, since the tract of land supposedly improved had been registered since 1914 in the name of JM Tuason and Co., Inc., plaintiff-appellant contends that defendants-appellees were benefited by said improvements. Hence, the former claims that he is entitled to reimbursement from JM Tuason and Co., Inc. based on Art. 2142, NCC. Whether or not the complaint based on Art. 2142, NCC is tenable Atty’s notes: Bakit walang quasi-contract in this case? Kasi mayroong existing contract. Art. 2142, NCC: “Certain lawful, voluntary, and unilateral acts give rise to the juridical relation of quasi-contract to the end that no one shall be unjustly enriched or benefited at the expense of another.” Kapag may existing contract, hindi siya unilateral, therefor, hindi siya quasi-contract. “A presumed quasi-contract cannot emerge as against one party when the subject matter thereof is already covered by an existing contract with another party.” “EXTRA-Contractual Obligations” are obligations which do not arise from contracts. Hermanos v. Orense GR L-9188 December 4, 1914 Engracio Orense had been the owner of a parcel of land, with buildings and improvements erected thereon, situated in Guinobatan, Albay. On February 14, 1907, Jose Duran, nephew of Orense, with Orense’s knowledge and consent, executed a public instrument selling and conveying unto Gutierrez Hermanos the aforementioned property, with Duran reserving to himself the right to repurchase it within a period of four years. Hermanos had not entered into possession of the purchased property, owing to its continued occupancy by Orense and Duran by virtue of a contract of lease which was in force up to February 14, 1911. After the lapse of the stipulated period of redemption, Orense refused to deliver the property to Hermanos and to pay the rental thereof for its use and occupation since February 14, 1911. 1. Whether the sale is valid 2. Whether or not Orense is bound to fulfill the obligation to deliver the land to Hermanos arising from the contract entered into by his nephew Duran Atty’s notes: In the court proceedings, Orense testified that he indeed authorized Duran to execute the contract selling and conveying the parcel of land to Hermanos. This case discusses the concept of ratification. The testimony made by Orense in open court serves as ratification and cures the defect of the contract. “Ratification purifies the contract of its flaws.” Estoppel din ito. Example, binawi ni Orense iyong testimony niya, estopped na siya to do that. Why? His testimony in the open court will serve as the ratification and cures the defect of the contract between Hermanos and Duran. Ratification ay same concept with voidable marriages and marriages subject to legal separation. Kailangan i-honor ni Orense ang obligations niya kasi sinabi niya may consent siya at authorized niya si Duran. “Principal must therefore, fulfill all the obligations contracted by the agent who acted within the scope of his authority.” Adille v. CA GR L-44546 January 29, 1988 Felisa Azul owned a property located in Legaspi City. Felisa married twice in her lifetime; the first, with Bernabe Adille with whom she had as an only child defendant Rustico Adille; in her second marriage with one Procopio Asejo, her children were the plaintiffs. In 1939, Felisa sold said property through pacto de retro sale with a right to repurchase in three years, however, she died in 1942 without being able to redeem said property. After her death but during the period of redemption, Adille repurchased the property, by himself alone, and thereafter, executed a Deed of Extra-Judicial Partition representing himself as the sole heir of Felisa. 1. Whether or not a co-owner acquire exclusive ownership over the property held in common 2. Whether Adille acted within the scope of negotiorum gestio or is guilty of fraud First-The right of repurchase may be exercised by a co-owner with respect to his share alone. Second-Adille took over the property either on behalf of his co-heirs, in which event, he had constituted himself a negotiorum gestor, or for his exclusive benefit, in which case, he is guilty of fraud. Fraud attended the registration of the property. He cannot therefore be said to have assumed the mere management of the property abandoned by his co-heirs, the situation Art. 2144, NCC contemplates. Atty’s notes: Negotiorum gestio is NOT a mode of acquiring ownership. Mayroon bang negotiorum gestio dito? (Hindi niya sinagot. Sad. Open for discussion. Hehe) Andres v. Manufacturers Hanover GR 82670 September 15, 1989 Petitioner operating under the name “Irene’s Wearing Apparel,” was engaged in the manufacture of garments, apparel, and linens for local and foreign buyers. Among its foreign buyers was Facets Funwear, Inc. In August 1980, Facets instructed FNSB to transfer $ 10,000 to Andres via PNB. FNSB Whether or not private respondents has the right to recover the second $ 10,000 remittance it had delivered to petitioner Yes. The doctrine of solutio indebiti as embodied in Art. 2154, NCC, applies in the case at bar, and that Manufacturers Hanover is entitled to recover the second $ 10,000 that was paid by mistake. instructed Manufacturers Hanover to effect the transfer through its facilities and to charge the amount to the FNSB account of private respondent. The payment was not effected immediately because the payee was only “Wearing Apparel.” Once clarified with PNB on August 27, 1980, petitioner received the remittance of $ 10,000 on August 28, 1980. Atty’s notes: Two elements of solutio indebiti: 1. No pre-existing contract/no right to demand something 2. Delivery/payment was made by mistake Thus, obligation to return arises. (Solutio indebiti, lalabas sa exam.) On August 25, 1980 Facets learned about the delay and instructed FNSB to effect the payment through the PCIB. Facets and Manufacturers Hanover are both unaware that the petitioner had already received the previous remittance. Accordingly, private respondent instructed the PCIB to pay $ 10,000 to petitioner. Hence, on September 11, 1980, petitioner received a second $ 10,000 remittance. The contract of petitioner was with Facets. It was the latter and not private respondent which was indebted to petitioner. On the other hand, the contract for the transmittal of dollars from the US to petitioner was entered into by private respondent with FNSB. Neither was private respondent a party to the contract of sale between petitioner and Facets. There being no contractual relation between them, petitioner has no right to apply the second $ 10,000 remittance delivered by mistake by private respondent to the outstanding account of Facets. Private respondent asked petitioner for the return of the second remittance but the latter refused to pay contending that Art. 2154 does not apply because its requisites are absent given that Facets still had an unpaid balance of $ 49,324. Hence, petitioner argued that the last $ 10,000 remittance was in payment of a pre-existing debt, thus, petitioner was not unjustly enriched. CBK Power v. CIR GR 198279-30 January 15, 2014 Petitioner is principally engaged in the business of operating hydroelectric power plants in Laguna. On December 29, 2004, petitioner filed an application for VAT Zero-Rate with the BIR, which was duly approved thereby. Thus, petitioner’s sale of electricity to the NPC from January 1, 2005 to Whether or not the principle of solutio indebiti applies to the present case No. Though the principle of solutio indebiti may be applicable to some instances of claims for a refund, the elements thereof are wanting in this case. October 31, 2005 was declared to be entitled to the benefit of effectively zero-rated VAT. Petitioner filed administrative claims for the issuance of tax credit certificate (TCC/applied for refund) for its alleged unutilized input taxes on its purchase of capital goods, local purchases and/or importation of goods other than capital goods, and services, with BIR RDO No. 55 of Laguna, covering the first three quarters of 2005. First, there exists a binding relation between petitioner and the CIR, the former being a taxpayer obligated to pay VAT. Second, the payment of input tax was not made through mistake, since petitioner was legally obligated to pay for the liability. The entitlement to a refund or credit of excess input tax is solely based on the distinctive nature of the VAT system. At the time of payment of input tax, the amount paid was correct and proper. (No additional notes from Atty. on this case) Puyat and Sons v. Manila GR L-17447 April 30, 1963 On August 11, 1958, the plaintiff Gonzalo Puyat & Sons, Inc., primarily engaged in the business of manufacturing furniture with a factory and display room located in Manila, filed an action for refund of Retail Dealers Tax paid for the periods from the first Quarter of 1950 up to the third quarter of 1956, against the incumbent City Treasurer of Manila, defendant Marcelino Sarmiento. However, according to Sec 18(n) of Republic Act No. 409, manufacturers who are retail dealers of their own products shall be exempt from the payment of retail dealer’s tax. On October 30, 1956, the plaintiff filed with defendant City Treasurer of Manila, a formal request for refund of the retail dealer’s tax unduly paid, which the latter denied. 1. Whether or not the retail dealer’s taxes paid without protest are refundable 2. Assuming that the plaintiff-appellee is entitled to the refund of the retail taxes in question, whether or not the claim for refund filed in October 1956, insofar as said claim refers to taxes paid from 1950 to 1952, has already prescribed First-Yes. The retail dealer’s taxes paid without protest are refundable. Art. 2155, NCC provides that payment made by reason of a mistake in the construction or application of a doubtful or difficult question of law may fall under the principle of solutio indebiti. Thus, such erroneous payment may be recovered even when there was no protest made upon payment. Second-Tax payments made before October 30, 1950 already prescribed. As provided in Art. 1146, NCC, actions upon a quasi-contract must be commenced within six years. This provision shall apply to retail dealer’s tax paid after the effectivity of the NCC on August 30, 1950. Insofar as payments made prior, the period of prescription is 10 years, as provided in Act No. 190. However, Art. 1116 of the NCC further provides that, although prescription already running before its effectivity shall be governed by laws previously in force, NCC shall be applicable should the entire period required in the NCC have elapsed, even though the former laws required a longer period. Hence, this present complaint. Tax payments: 1. First to third quarter, 1950 Covered by old law and Art. 1116, NCC, prescribed 2. Fourth quarter, 1950 Covered by NCC, prescribed 3. 1951 thereafter Recoverable Atty’s notes: Minsan nangyayari talaga sa mga LGU na may mga pinababayad na taxes na hindi naman dapat, so ang sinabi lang ng SC, may solutio indebiti. Sagrada Orden v. NACOCO GR L-3756 June 30, 1952 This is an action to recover the possession of a piece of real property (land with warehouses) situated in Pandacan, Manila and the rentals for its occupation and use. Whether or not Sagrada Orden is entitled to recover rentals from NACOCO No. If NACOCO is liable at all, its obligations must arise from any of the four sources of obligations–law, The land belongs to the plaintiff. However, during the Japanese military occupation, the land was acquired by Japanese corporation Taiwan Tekkosho. After liberation, more specifically on April 4, 1946, the Alien Property Custodian (APC) of the USA took possession, control, and custody thereof for the reason that it belonged to an enemy national. contracts, quasi-contracts, crimes, and quasi-delicts. NACOCO is neither guilty of any offense nor was there any negligence on its part. There was also no privity (of contract or obligation) between the APC and Taiwan Tekkosho. The property was occupied by the defendant under a custodianship agreement with the APC. Defendant was authorized to repair the warehouse on the land and actually spent a sum of money for repairs. Atty’s notes: The list in Art. 1157, NCC is exclusive in nature. Meaning, kapag wala doon, hindi siya isang civil obligation. Kapag hindi siya kasama sa listahan, if it is not an obligation based on law, contracts, quasi-contracts, delicts, and quasi-delicts, hindi siya civil obligation. The Republic of the Philippines (RP) intervened and entered into an agreement with Sagrada Orden that the sale in favor of Taiwan Tekkosho was null and void because it was executed under threats, duress, and intimidation, and it was agreed that the title issued in the name of the Taiwan Tekkosho be cancelled and the original title of plaintiff reissued. NACOCO was ordered to vacate the property on or before February 28, 1949. Pursuant to the agreement, the court reserved to Sagrada Orden the right to recover from the NACOCO reasonable rentals for the use and occupation of the premises. Metrobank v. Rosales GR 183204 January 13, 2014 Petitioner MBTC issued a “Hold Out” order against the account of Liu Chiu Fang and the joint account of Ana Grace Rosales and Yo Yuk To following a series of alleged fraudulent activities involving their respective accounts with the petitioner. Respondents filed before the RTC a complaint for Breach of Obligation and Contract with Damages. Whether or not MBTC is liable for damages for breach of contract Yes. Bank deposits, which are in the nature of a simple loan or mutuum, must be paid upon demand by the depositor. The “Hold Out” clause applies only if there is a valid and existing obligation Respondents alleged that they attempted several times to withdraw their deposits but to no avail because of the “Hold Out.” No explanation, however, was given by petitioner as to why it issued the “Hold Out” order. Petitioner alleged that respondents have no cause of action because it has a valid reason for issuing such order. It averred that the “Hold Out” order was due to the fraudulent scheme of respondent Rosales and the ongoing criminal complaint for Estafa against the same. arising from any of the sources of obligations enumerated in Art. 1157, NCC. In this case, petitioner failed to establish that respondents have an obligation to it under any law, contract, quasi-contract, delict, or quasi-delict. The criminal case is not enough reason for petitioner to issue a “Hold Out” order as it has not yet reached final judgment. In fact, the “Hold Out” order was issued even prior to filing the criminal complaint. RTC rendered a decision finding petitioner liable for damages for breach of contract. Petitioner appealed to the CA. However, CA affirmed RTC’s ruling with modification. Petitioner is guilty of breach of contract when it unjustifiably refused to release respondent’s deposit despite demand, and therefore, is liable for damages. Hence, this recourse by petitioner. Atty’s notes: Bakit invalid yung hold out order? Dahil wala pang criminal case na na-file. Always remember class, the contract between the depositor and the bank is not a contract of deposit, it is a contract of loan/simple loan/mutuum. Creditor ang mga nagbabangko o nagdedeposit ng savings account, debtor/borrower ang bank. Therefore, may breach of contract kasi unreasonable yung refusal ni bank to give the money of the depositor, kasi wala namang na-file na kaso. If ever may kaso man, wala pang final judgment. Therefore, no basis for the “Hold Out” order. Saludaga v. FEU GR 179337 April 30, 2008 Petitioner Joseph Saludaga was a sophomore law student of respondent FEU when he was shot by Alejandro Rosete (Rosete), one of the security guards on duty at the school premises on August 18, 1996. Rosete was brought to the police station where he explained that the shooting was accidental. He was eventually released considering that no formal complaint was filed against him. Petitioner thereafter filed a complaint for damages against respondents on the ground of breach of obligation to provide students with a safe and secure environment. The RTC rendered a decision in favor of petitioner. Respondents appealed to the CA which rendered the assailed decision. Petitioner filed a motion for reconsideration which was also denied. Hence, this instant petition. Whether or not 1. What transpired is a fortuitous event/force majeure 2. FEU violated the implicit contractual obligation to provide a safe and secure educational environment to its students 3. FEU exercised due diligence in selecting Galaxy as its security agency 4. Galaxy is liable to pay damages caused by Rosete 1. No. When the effect is found to be partly the result of a person’s participation–whether by active intervention, neglect or failure to act–the whole occurrence is humanized and removed from the rules applicable to acts of God. 2. Yes. 3. Yes. Respondent failed to prove that the guards assigned in the campus met the requirements stipulated in the Security Service Agreement with Galaxy. Total reliance on the security agency on matters involving the qualifications of security guards assigned to the school constitutes negligence (culpa contractual) on the part of FEU. To do so would result to contracting away its inherent obligation to ensure a safe learning environment for its students. 4. Yes. Respondent cannot be held liable for damages under the rules of quasi-delicts because FEU is not the employer of Rosete, rather, Galaxy, shall be liable to pay damages to FEU for negligence in the selection and supervision of its employees. There was negligence on the part of Galaxy when it supplied FEU with an unqualified security guard. Atty’s notes: May iba-ibang klase ng negligence: 1) culpa contractual (contractual negligence) 2) culpa aquiliana (quasi-delict). Si FEU is liable for culpa contractual. People’s Car v. Commando Security GR L-36840 May 22, 1973 People's Car Inc. (plaintiff) entered a "Guard Service Contract" with Commando Security Service Agency (defendant) to safeguard and protect its business premises from theft, pilferage, robbery, vandalism and all other unlawful acts of any person or person prejudicial to their interest. On April 5, 1970 at around 1:00 A.M., the defendant's security guard on duty at plaintiff's premises, without any authority, consent, approval, knowledge or orders of the plaintiff and/or defendant brought out of the compound of the plaintiff a car belonging to its customer, and drove said car for a place or places unknown, abandoning his post. While driving said car, it lost control causing the same to fall into a ditch by reason of which the plaintiff's complaint for qualified theft against said driver and was blottered in the office of the Davao City Police Department. Whether or not the defendant is obliged to indemnify the plaintiff for the entire costs as a result of the incident Atty’s notes: Actually ang issue dito ay hindi naman kung dapat bang i-indemnify. Ang issue dito is kung ano ba ang provision na dapat sundin. Par 4 or Par 5 of the contract? Ang sabi ni Commando, par 4 daw kasi maliit lang doon ang kanilang liability, parang P 1,000 pesos per guard post. Kaso nga lang, ano ang difference nilang dalawa? Par 4 ang premise nito ay mayroong negligence of the guards. However, what occurred is not a case of negligence, but a criminal act (qualified theft). The security guard willingly and unlawfully took the car outside without the consent of People’s Car, Inc. So ang mag-govern is Par 5 dahil hindi pwedeng i-invoke ang negligence dahil breach of contract ang nangyari. Par 5 inaassume ni Commando Security Agency ang responsibility for the acts done by the security guards during their watch hours. Ano’ng kinalaman sa lecture natin? Again, autonomy of contracts. The provisions of the contracts are the laws between the parties as long as they are not contrary to law, morals, good customs, public order, or public policy (Art. 1306, NCC). The stipulations serve as the law between the parties. Cangco v. Manila Railroad GR L-12191 October 14, 1918 Atty’s notes: For example, si A sumakay sa isang bus, ang drive ng bus ay isang reckless driver na sa sobrang pagka-reckless, na-aksidente yung bus. Injured si A. Question: sino ang dapat kasuhan ni A? Baka lumabas ito sa bar exam ninyo, etc. Depende yan kung ano ang ifa-file niyang kaso. Kung ang basis mo ay contract, ang pwede mong kasuhan ay yung operator/owner ng bus because you have a contract with the owner of the bus (contract of carriage na ang main objective is to deliver passenger/goods from one point to another), not with the driver. Kapag contract, ang vinculum juris nangyayari upon the execution of the contract. Dito, whether or not may negligence, may vinculum juris na yan dahil mayroon nang existing contract. Walang makukulong dito. Kung ang basis mo ay quasi-delict, ang pwede niyong kasuhan ay yung dalawa: driver and owner. Ang basis nito ay naging negligent si driver because of the negligence of the owner in hiring its employees. Kapag nangyayari ang negligence, dito pa lang nag-aarise ang obligation (compared with contract, dito pa lang nagkakaroon ng vinculum juris). Here, the vinculum juris will exist upon the happening of negligence/lack of care/lack of foresight. Wala ring makukulong dito. Kapag ang kaso niyo naman ay based on crime/delict, ang pwede niyong kasuhan ay si driver. Ito kung gusto niyong may makulong. In case of insolvency of driver, the operator is subsidiarily liable. Depende yan sa inyo kasi magdedepende yan sa kung anong theory ang gagamitin niyo sa case ninyo. Depende kung ano ang ebidensya on hand. Pwede ring depende sa defense ng kalaban. One act can be a source of different causes of action. But ang rule is you cannot recover twice for the same act. Gutierrez v. Gutierrez GR 34840 September 23, 1931 On February 2, 1930, a passenger truck and an automobile of private ownership collided while attempting to pass each other on the Talon bridge on the Manila South Road in Las Pinas, Rizal. The truck was driven by chauffeur Abelardo Velasco, and was owned by Saturnino Cortez. The automobile was being operated by Bonifacio Gutierrez, a lad 18 years of age, and was owned by his parents. A passenger in the truck, Narciso Gutierrez, fractured her right leg and required medical attendance. Narciso Gutierrez blames both sets of defendants (Saturnino Cortez and Abelardo Velasco, and Bonifacio Gutierrez, et al). The owner of the passenger truck blames the automobile, which in turn blames the truck. Whether or not the defendants to the plaintiff for the payment of damages Yes. Atty’s notes: Single act, pwede siyang maging different kinds of causes of action. Ano ang naging basis ng liability ng owner ng car (father of Bonifacio Gutierrez? Quasi-delict. Liability arising from the acts of the driver who is a minor is assumed by the head of the house/family (father, who was not in the automobile while 18-year old Bonifacio was driving) Ano ang naging basis ng liability ng truck driver? Contract. Liable si truck driver for breach of contract with the owner.