Title
Arenas vs. Raymundo
Case
G.R. No. L-5741
Decision Date
Mar 13, 1911
Jewelry owner recovers unlawfully pledged items from pawnshop without reimbursing loan; pawnshop owner acted in good faith but cannot retain items pledged by non-owner.

Case Digest (G.R. No. L-32213)

Facts:

Estanislaua Arenas et al. v. Fausto O. Raymundo, G.R. No. 5741, March 13, 1911, the Supreme Court, Torres, J., writing for the Court.

The plaintiffs were Estanislaua Arenas (and Julian La O as co-plaintiff) and the defendant-appellant was Fausto O. Raymundo, owner of a pawnshop in Tondo. Plaintiffs alleged ownership of several specified pieces of jewelry, which had been delivered for sale on commission to Elena de Vega, who in turn entrusted them to Concepcion Perello to sell. Perello instead pledged the jewelry at Raymundo’s pawnshop and appropriated the proceeds.

Perello was prosecuted for estafa, convicted on July 30, 1908, and ordered by the criminal judgment to restore the jewelry or pay its value. After the criminal conviction became final and Perello did not restore the items, plaintiffs sued Raymundo (action commenced August 31, 1908) seeking restitution of the jewelry and costs, alleging that Raymundo refused delivery unless the items were redeemed.

A seizure writ was issued September 2, 1908; the sheriff seized the jewelry and, after the pawnshop failed to give bond within five days, delivered the jewelry to plaintiffs’ attorney on September 15, 1908. Raymundo demurred (overruled) and answered, denying allegations generally and asserting as a special defense that Perello had pledged the jewelry with the knowledge and mediation of plaintiffs’ son, attorney Gabriel La O, thus estopping plaintiffs; Raymundo also sought return of the pledge value if the court awarded the jewelry.

The case was tried (oral testimony) March 17, 1909; the trial court, on June 23, 1909, ordered Raymundo to restore the jewelry to the plaintiffs, reserving to Raymundo his action against the proper party. Raymundo excepted, moved for new trial (denied), and perfected a bill of exceptions and ap...(Subscriber-Only)

Issues:

  • May the owner recover personal property that was misappropriated by a third person from a pawnshop which acquired it in good faith by taking it in pledge?
  • Is a pawnshop entitled to retain misappropriated pledged property unless the true owner reimburses the pawnshop for the loan advanced?
  • Did the plaintiffs’ son, attorney Gabriel La O, consent to or authorize the pledging so as to estop the plai...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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