Case Digest (G.R. No. L-41337)
Facts:
- The case involves Tan Boon Bee & Co., Inc. v. Jarencio (G.R. No. L-41337) concerning a sale of a printing machine.
- Tan Boon Bee & Co., trading as Anchor Supply Co., sold paper products on credit to Graphic Publishing, Inc. (GRAPHIC) for P55,214.73.
- GRAPHIC made a partial payment of P24,848.74 on December 20, 1972, and executed a promissory note for the remaining balance of P30,365.99 on December 21, 1972.
- The promissory note stipulated monthly installments at a 12% interest rate, which GRAPHIC failed to pay.
- Tan Boon Bee initiated a case for a sum of money against GRAPHIC in the Court of First Instance of Manila.
- On January 18, 1974, the court declared GRAPHIC in default and ruled in favor of Tan Boon Bee.
- A sheriff levied a printing machine owned by the Philippine American Drug Company (PADCO) but located at GRAPHIC's premises.
- Despite PADCO's claim of ownership, the sheriff auctioned the machine to Tan Boon Bee.
- PADCO filed a motion to nullify the sale, which the judge granted on March 26, 1975, ordering the return of the machine to PADCO.
- Tan Boon Bee's motions for reconsideration were denied, prompting a petition for certiorari.
Issue:
- (Unlock)
Ruling:
- The Supreme Court ruled in favor of Tan Boon Bee & Co., Inc., annulling the March 26, 1975 order of the Court of First Instance of Manila.
- The Court determined that claims from third-party claimants like PADCO should be litigated in a separate action, not within the execution case.
- The Court found that the respo...(Unlock)
Ratio:
- The Supreme Court highlighted that under Section 17 of Rule 39 of the Rules of Court, third-party claims on levied properties must be resolved in a separate action.
- This principle is designed to prevent confusion and maintain focus on the original parties involved in the case.
- The Court referenced Bayer Philippines, Inc. vs. Agana...continue reading
Case Digest (G.R. No. L-41337)
Facts:
The case of Tan Boon Bee & Co., Inc. v. Jarencio (G.R. No. L-41337) involves a dispute concerning the sale of a printing machine. The petitioner, Tan Boon Bee & Co., Inc., which conducted business under the name Anchor Supply Co., had sold paper products on credit to Graphic Publishing, Inc. (GRAPHIC) for a total amount of P55,214.73. On December 20, 1972, GRAPHIC made a partial payment of P24,848.74 through a check and subsequently executed a promissory note on December 21, 1972, for the outstanding balance of P30,365.99. This note stipulated that GRAPHIC would pay the remaining balance in monthly installments at an interest rate of 12%. However, GRAPHIC failed to make any of the installment payments, prompting Tan Boon Bee to file a case for a sum of money against GRAPHIC in the Court of First Instance of Manila. On January 18, 1974, the court declared GRAPHIC in default and ruled in favor of Tan Boon Bee. Following the issuance of a writ of execution, the sheriff levied a printing machine, specifically the "Original Heidelberg Cylinder Press," which was owned by the Philippine American Drug Company (PADCO) but located at GRAPHIC's premises. Despite PADCO's notification to the sheriff asserting ownership of the machine, the sheriff proceeded with the auction sale, ultimately selling the machine to Tan Boon Bee. Subsequently, PADCO filed a motion to nullify the sale, which the respondent judge granted on March 26, 1975, ordering the return of the machine to PADCO. Tan Boon Be...