Title
Gabriel vs. Monte de Piedad
Case
G.R. No. 47806
Decision Date
Apr 14, 1941
Leoncio Gabriel executed a chattel mortgage for appraisal deficiencies; despite acquittal in a criminal case, the Supreme Court upheld its validity, finding sufficient consideration, compliance with law, and no public policy violation.

Case Digest (G.R. No. L-5840)
Expanded Legal Reasoning Model

Facts:

  • Employment and Liability
    • Petitioner Leoncio Gabriel served as jeweler‐appraiser at Monte de Piedad from 1913 until May 1933.
    • His alleged erroneous appraisals resulted in pawnshop deficiencies totaling ₱14,679.07.
  • Chattel Mortgage Execution
    • On December 13, 1932, Gabriel executed a chattel mortgage to secure payment of the ₱14,679.07 deficiency with 6% interest from that date.
    • He agreed to pay ₱300 per month until full satisfaction; the mortgage was registered December 22, 1932.
  • Pleadings and Defenses
    • Monte de Piedad sued in CFI Manila (Civil Case No. 50847) to recover the balance of ₱11,345.75 and to foreclose the mortgage on default.
    • Gabriel’s defences: general denial; denial of the mortgage’s genuineness; allegation of a management scheme; reliance on his acquittal in related criminal case No. 49078 as a bar.
    • Cross-complaint: challenged Marco’s authority; alleged false inducement; contended the mortgage was based on non-existent consideration and void ab initio.
    • Counterclaim: demanded return of ₱3,333.25 in alleged unlawful salary deductions; unpaid salaries for May–June 1933; and ₱15,000 in damages for malicious prosecution.
  • Procedural History
    • Trial court rendered judgment for Monte de Piedad.
    • Court of Appeals affirmed on May 29, 1940.
    • Gabriel filed this petition for certiorari in the Supreme Court.

Issues:

  • Is the chattel mortgage void as contrary to law, public morals, or public policy?
  • Does the mortgage lack valid consideration?
  • Was there non-compliance with Section 5 of Act No. 1508 (Chattel Mortgage Law)?
  • Does petitioner’s acquittal in criminal case No. 49078 bar the civil action to enforce the mortgage?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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