Case Digest (G.R. No. 100481) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In PHILIPPINE REFINING CO., INC. vs. Francisco Jarque, the appellant Refining Company and the insolvent debtor Jarque executed three mortgages on the motor vessels *Pandan* and *Zaragoza*, all recorded in the record of transfers and incumbrances at the Port of Cebu as “chattel mortgages.” The first two lacked the affidavit of good faith required by Act No. 1508, while the third, though containing the affidavit, was not registered in the Customs House until May 17, 1932—within thirty days before insolvency proceedings. A fourth mortgage on *Zaragoza*, entered in the Register of Deeds on May 12, 1932, likewise fell within this prohibited period. On June 2, 1932, a petition in the Court of First Instance of Cebu declared Jarque insolvent and assigned his estate to José Corominas. At trial, Judge José M. Hontiveros refused foreclosure, ruling the mortgages fatally defective.Issues:
- Whethe
Case Digest (G.R. No. 100481) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Appellate procedure
- A motion to hear the case in banc was granted on the ground of admiralty jurisdiction, which was later deemed erroneous.
- At first instance, Judge Hontiveros of the Court of First Instance of Cebu declined to order foreclosure and sustained the special defenses.
- Mortgage and insolvency transactions
- Three chattel mortgages on the motor vessels Pandan and Zaragoza were executed by Philippine Refining Co., Inc., and Francisco Jarque, recorded in the Cebu port registry:
- The first two mortgages lacked the affidavit of good faith.
- The third mortgage contained an affidavit but was registered on May 17, 1932—within thirty days prior to insolvency—and did not disclose the capacity of the co-signer M. N. Brink.
- A fourth mortgage on the motorship Zaragoza was executed by Jarque and Ramon Aboitiz and recorded in the register of deeds on May 12, 1932 (also within the thirty-day period).
- Insolvency proceedings against Francisco Jarque were initiated on June 2, 1932, resulting in his declaration as insolvent and assignment of assets to José Corominas. The appellant sought foreclosure of the mortgages.
Issues:
- Jurisdictional issue
- Does a mere mortgage of a vessel confer admiralty jurisdiction?
- Substantive validity of the mortgages
- Are vessels subject to the Chattel Mortgage Law as personal property?
- Does the absence of the required affidavit of good faith render the mortgages unenforceable against creditors and subsequent encumbrancers?
- Does registration of the mortgages within thirty days before insolvency invalidate them in favor of the insolvent estate?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)