Title
Lima vs. Lim Chu Kao
Case
G.R. No. 28203
Decision Date
Feb 6, 1928
Simplicia Lima, registered owner of vessels *Rubi* and *Zafiro*, contested sham transfers to her son Isidoro Lim Chu Kao. Court ruled transfers void, upheld Lima’s ownership, and ordered return of vessels.

Case Summary (G.R. No. 28203)

Facts of the Case

This case arises from a dispute over ownership of two vessels, the motorboat Rubi and the sailboat Zafiro. Simplicia Lima, the plaintiff and mother of the defendant, Isidoro Lim Chu Kao, sought recovery of these vessels, claiming rightful ownership following various transactions surrounding their acquisition. Simplicia Lima had been involved with Manuel Lim Ya, a Chinese national, with whom she bore three children, including the defendant. After Manuel Lim Ya's departure for China and subsequent death there, issues surrounding the ownership and transfer of the vessels emerged, particularly concerning alleged documents of sale executed in favor of Isidoro Lim Chu Kao.

Acquisition and Mortgages of Vessels

Simplicia Lima purchased the Rubi in 1916 and the Zafiro in 1917, both transactions purportedly valued at P11,000 and P4,000, respectively. Following these purchases, she mortgaged both vessels to a partnership for substantial sums, a common practice at the time. These vessels underwent significant repairs that increased their value, leading to further mortgages in 1919, which were forgiven when Manuel Lim Ya compensated the partnership for the total amount outstanding. Subsequently, customs authorities acknowledged Simplicia Lima as the rightful owner of the vessels by issuing certificates of ownership in her favor in June 1919.

Allegations of Transfer and Ownership

Following Manuel Lim Ya's death, it was alleged that he instructed Simplicia Lima to transfer the vessels to Isidoro Lim Chu Kao. On July 8, 1920, Simplicia Lima executed purported sale documents for the vessels in favor of her son, yet these transfers were largely characterized as questionable, involving vague oral testimonies lacking corroborative evidence on the defendant's part. Notably, the defendant acknowledged that the sale documents executed by his mother were sham documents, raising serious doubts regarding the legitimacy of the claims to ownership based solely on these documents.

Legal Considerations and Findings

The court's evaluation pointed to Simplicia's established ownership of the vessels based on the original purchase and mortgage transactions and the certificates issued by the customs authorities. Moreover, evidence presented indicated that Simplicia acted in good faith and was not implicated in any attempts to circumvent registration laws. The testimonies, particularly from Manuel Lim Ya during the customs investigati

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