Case Digest (G.R. No. L-4333)
Facts:
Mary Hayden Arcache, assisted by her husband Joseph Arcache, v. Nicolas Lizares & Co., Inc., et al., G.R. No. L-4333, May 23, 1952, Supreme Court En Banc, Paras, C.J., writing for the Court. The defendant-appellant Nicolas Lizares & Co., Inc. (the corporation) was organized by Nicolas Lizares and members of his family and owned two parcels formerly registered in the names of Lydia and Ofelia Lizares, now under Transfer Certificate of Title No. 1776 in the corporation’s name. Under a written instrument dated May 10, 1944, the corporation sold those two parcels to Mary Hayden Arcache, assisted by her husband Joseph Arcache, for P621,500; the corporation acknowledged receipt of P150,000 on March 10, 1944 as part payment. The balance of P471,500 was to be paid by two promissory notes: P200,000 within 90 days from April 3, 1944, and P271,500 within twelve months from April 3, 1944; the sale was secured by mortgage of the parcels in favor of the corporation.There was no dispute as to payments made prior to January 8, 1945; the unpaid portion was P271,500. Earlier payments had been made directly to Nicolas Lizares. On January 8, 1945, with Nicolas Lizares absent in Baguio, Joseph Arcache deposited P271,500 with the Philippine National Bank to the credit of “Nicolas Lizares” (the deposit remained in that name). The plaintiffs alleged they had thus complied or at least had an excuse for nonpayment, while the corporation contested both the deposit’s legal effect and the claim that Lizares had authorized such a deposit.
On February 6, 1950, the Arcache spouses sued in the Court of First Instance of Rizal against the corporation, Lydia and Ofelia Lizares, and Manuel C. Monsod as Register of Deeds, later amending the complaint (March 3, 1950). They sought surrender of the certificate of title, registration of the deed of sale in their names, cancellation of existing title No. 72435 and issuance of a new title to them free of liens, and P150,000 damages. The trial court (Court of First Instance of Rizal) dismissed the complaint as to Lydia and Ofelia Lizares (order April 17, 1950) but denied the corporation’s motion to dismiss, and the corporation answered alleging nonpayment of P271,500 and rescission plus claim for P18,000 damages.
After trial the Court of First Instance rendered judgment ordering the plaintiffs to pay the corporation P2,262.50 and, upon payment, ordered the corporation to execute a deed of sale in favor of the plaintiffs free of liens; neither party was awarded damages. The corporation appealed to the Supreme Court.
The central controversy before the Supreme Court was the legal effect of the January 8, 1945 deposit of P271,500 in the name...(Subscriber-Only)
Issues:
- Did the deposit of P271,500 with the Philippine National Bank to the credit of Nicolas Lizares operate as payment or otherwise prevent the corporation from rescinding the contract of sale?
- If the deposit did not constitute payment, what is the proper equivalent in actual Philippine currency the plaintiffs must pay to satisfy the outst...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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