A.M. No. P-06-2213 - Sy vs. Binasing

Prior to October 10, 1903, plaintiff Eleanor Erica Strong owned 800 shares of Philippine Sugar Estates Development Company, Limited, par value P100 each, evidenced by certificates Nos. 2125 to 2924.
On October 10, 1903, defendant Francisco Gutierrez Repide obtained possession of the shares by fraudulent means and claimed ownership.

On January 12, 1904, Eleanor filed a case (No. 2365) in the Manila Court of First Instance, seeking to declare the sale void due to fraud and to have the shares returned.
On April 29, 1904, the trial court ruled that the sale was fraudulent, void, and ordered the shares returned or, alternatively, payment of P38,352.71 if shares were not returned.
The Supreme Court of the Philippine Islands reversed the decision and dismissed plaintiff’s complaint.
Plaintiff appealed to the U.S. Supreme Court, which on May 3, 1909, reversed the Philippine Supreme Court and affirmed the trial court’s judgment.

On July 27, 1909, defendant satisfied the judgment by returning eight certificates representing 800 shares (different certificate numbers than originally owned) and plaintiff paid defendant P14,159.29 in Philippine currency (equivalent to $16,000 Mexican currency) pursuant to an agreement between attorneys.
Between October 10, 1903 and July 27, 1909, defendant retained possession or control of the shares and collected dividends for 1905-1908 totaling P19,200, which he refused to pay plaintiff despite demand.

Plaintiff filed a separate suit for recovery of the dividends amounting to P19,200.
On March 24, 1911, the Court of First Instance ruled in favor of plaintiff and awarded the amount plus interest from filing, offsetting interest due defendant on the amount paid in satisfaction of the judgment, with some modification of interest periods after motions for new trial.
Defendant appealed arguing that the judgment in the first case was fully satisfied and barred a subsequent suit for dividends, asserting the satisfaction agreement also released him from liability related to the shares beyond the judgment.

Whether the previous judgment annulled the fraudulent sale and vested title of shares to plaintiff or only established a debt payable in money.
Whether the satisfaction of the prior judgment, by payment and delivery of shares, released or settled all liabilities including dividends collected by defendant during possession.
Whether plaintiff’s separate suit for dividends collected during defendant’s possession is barred by the prior judgment satisfaction.
The proper computation and period of interest due to defendant on the sum paid by plaintiff.