Case Digest (G.R. No. 120528)
Facts:
In Atty. Dionisio Calibo, Jr. v. Court of Appeals and Dr. Pablo U. Abella (G.R. No. 120528, January 29, 2001), private respondent Pablo U. Abella purchased an MF 210 agricultural tractor (Serial No. 00105; Engine No. P126M00199) on January 25, 1979, for use in his Dagohoy, Bohol farm. In late 1985, his son, Mike Abella, rented a house from petitioner Dionisio R. Calibo, Jr. in Tagbilaran City. In October 1986, Pablo entrusted the tractor to Mike’s safekeeping in that rented garage. Mike paid rent and utility charges until November 1986, then defaulted. Confronted by Calibo over unpaid rent and bills, Mike promised to vacate by December’s end and offered the tractor as security, even requesting Calibo’s assistance in finding a buyer to satisfy his obligations. In January 1987, Calibo moved the tractor to his father’s garage and made repeated but unsuccessful collection efforts in Cebu City. No buyer materialized and Mike ceased communication. On November 22, 1988, Pablo personall...Case Digest (G.R. No. 120528)
Facts:
- Purchase and initial use
- On January 25, 1979, Pablo U. Abella bought an MF 210 agricultural tractor (Serial No. 00105; Engine No. P126M00199) for use on his farm in Dagohoy, Bohol.
- The tractor remained in Abella’s exclusive ownership and possession until October 1986.
- Lease of premises and safekeeping arrangement
- In October/November 1985, Mike Abella (son of Pablo Abella) rented petitioner Dionisio Calibo Jr.’s house in Tagbilaran City for residential purposes. Mike paid rent and utilities up to October 1986, then ceased payments.
- In October 1986, Pablo Abella withdrew the tractor from his farm and entrusted it to Mike for safekeeping in the garage of the rented house.
- Rent and utility arrears; offer of tractor as security
- Beginning November 1986, Mike defaulted on rent and electric/water charges. Calibo confronted him and learned of the arrears.
- Mike informed Calibo he would vacate end-December 1986, assured settlement of arrears, and offered the tractor as security, requesting assistance to find a buyer.
- Transfer of tractor and unsuccessful collection efforts
- In January 1987, after a new tenant moved in, Calibo relocated the tractor to his father’s garage in Tagbilaran City.
- Calibo made three trips (January–March 1987) to Cebu City to collect from Mike, but Mike was unavailable; Calibo left word about a prospective buyer.
- Failed sale, disappearance, and repossession attempt
- A buyer appeared but did not complete the purchase; Mike again promised the tractor as guarantee. Thereafter, Mike ceased all contact.
- On November 22, 1988, Pablo Abella personally went to Tagbilaran to reclaim the tractor. Calibo refused to release it absent settlement of arrears and execution of a promissory note, leading Abella to return to Cebu City empty-handed.
- Replevin suit and procedural history
- On November 25, 1988, Pablo Abella filed a replevin action in the RTC of Cebu, Branch 11, asserting ownership and seeking recovery of the tractor, actual damages, and attorney’s fees.
- The trial court ruled for Abella as lawful possessor; the Court of Appeals affirmed in CA-G.R. CV No. 39705, reducing actual damages by transport costs. Calibo then elevated the case to the Supreme Court via petition for review on certiorari.
Issues:
- Whether the tractor was validly pledged by Mike Abella to Calibo to secure Mike’s debt.
- Whether, alternatively, the transaction constituted a contract of deposit entitling Calibo to retain possession until settlement.
- Whether an implied principal-agent relationship between Pablo Abella and Mike Abella binds Pablo under Article 1911 of the Civil Code.
- Whether Pablo Abella, as owner, is entitled to recover possession by replevin.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)