midterm-property.docx

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Yu vs. Honrado Facts: Subject of the case is the possession of about forty-two metric tons of scrap engine blocks (valued at more than forty thousand pesos), part of a stock which Marcelo Steel Corporation sold to an alleged swindler and which scrap iron was allegedly purchased in good faith by the Yu spouses from the swindler but retrieved from the purchasers by Marcelo Steel Corporation by means of a search warrant. Marcelo sold to Refuerzo who paid through a bouncing check. Refuerzo sold to Soledad junk shop who paid in GF (innocent purchaser) but items were seized by police because court Judge (Honrado) declared it to have been embezzled and returned to Marcelo Steel Corp. The fiscal filed a case of Estafa against Refuerzo et.al. The case temporarily archived the case. But resolution has to be rendered as to the conflicting claims of the Soledad- Yu spouses and Marcelo Steel Corporation with respect to the scrap engine blocks. The Yu spouses bought the scrap engine blocks in good faith for 44,000 from the alleged swindler without any notice that the same were obtained under false pretenses or by means of a bouncing check. The purchase by the Yu spouses of the scrap engine blocks from Refuerzo, doing business under the tradename C. C. Varried Corporation, was covered by a sales invoice and seemed to have been made in the ordinary course of business Held: Marcelo Steel Corporation contends that it recovered the scrap engine blocks by means of a valid warrant. The Yu spouses counter that the search warrant was void because it was issued without probable cause on the basis of Nuestro's hearsay testimony. The court held that the search warrant was lawfully issued. Respondent Judge complied with the requirements. But from the fact that the search warrant was validly issued, it does not follow that Marcelo Steel Corporation is entitled to retain the same. There is as yet no decree of restitution in the criminal case entitling Marcelo Steel Corporation to recover the scrap iron from the third person who bought it in good faith and for value. Hence, in the absence of any adjudication as to the civil liability, there is no legal basis for allowing Marcelo Steel Corporation to recover possession of the scrap engine blocks. Since Marcelo Steel Corporation and the Yu spouses acted in good faith, the question is which of them should suffer the loss occasioned by the acts of the alleged swindler? The answer is found in the rule, enunciated by Justice Holmes in Eliason vs. Wilborn, 281 U.S. 457 (applied here by analogy), that, "as between two innocent persons, one of whom must suffer the consequence of a breach of trust, the one who made it possible by his act of confidence must bear the loss" Cordero vs. Cabral Facts: Gregorio Z. Ocampo died and left widow Felipa Cordero and her children all surnamed Ocampo with a parcel of land which is a riceland- the southern portion of which is occupied by defendant Victoria Cabral who refused to surrender and vacate said portion of lands despite demands of Cordero. Cabral claims that she and her predecessors in interest have been in actual, adverse, peaceful and continuous possession of this portion of land for a period of more than 50 years. Plaintiffs alleged that defendants’ predecessors in interest never really acquired owner of said land from the deceased Ocampo through a valid sale but only as “prospective owner” because the sale did not materialize. So Cabral’s possession can’t be adverse nor continuous. Neither did she acquire said land by prescription because

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Yu vs. HonradoFacts:Sub|ectof thecasesthepossessonofabout forty-two metrc tons of scrap engnebocks (vaued at more than forty thousandpesos), part of a stock whch Marceo SteeCorporaton sod to an aeged swnder and whchscrap ron was aegedy purchased n good fathby the Yu spouses from the swnder but retrevedfrom the purchasers by Marceo Stee Corporatonby means of a search warrant.Marceo sod to Refuerzo who pad through abouncng check.Refuerzo sodto Soedad|unk shop who padnGF (nnocent purchaser) but tems were sezed bypoce because court |udge (Honrado) decared tto have been embezzed and returned to MarceoStee Corp. The sca ed a case of Estafa aganst Refuerzoet.a. The case temporary archved the case. Butresouton has to be rendered as to the conctngcamsof theSoedad- YuspousesandMarceoStee Corporaton wth respect to the scrapengne bocks.The Yu spouses bought the scrap engine blocks ingood faithfor44,000fromtheallegedswindlerwithout any notice that the same were obtainedunder false pretenses or by means of a bouncingcheck. ThepurchasebytheYuspousesof thescrap engine blocks from Refuerzo, doingbusiness under the tradename C. C. arriedCorporation, was co!ered by a sales in!oice andseemed to ha!e been made in the ordinarycourse of businessHeld: Marceo Stee Corporaton contends that trecovered the scrap engne bocks by means of avadwarrant. TheYuspousescounter that thesearchwarrant wasvodbecausetwasssuedwthout probabe cause on the bass of Nuestro'shearsay testmony.The court hed that the search warrant wasawfuy ssued. Respondent |udge comped wththerequrements. But fromthefact that thesearchwarrant was vadyssued, t does notfoowthatMarceoStee Corporatonsenttedto retan the same. There s as yet no decree ofresttutonnthecrmna caseenttngMarceoStee Corporaton to recover the scrap ron fromthe thrd person who bought t n good fath andfor vaue. Hence, n the absence of anyad|udcatonastothecv abty, theresnoega bass for aowng Marceo Stee Corporatonto recover possesson of the scrap engne bocks."ince #arcelo "teel Corporation and the Yuspouses acted in good faith, the $uestion is whichof them should su%er the loss occasioned by theacts of the alleged swindler&Theanswerisfoundintherule, enunciatedby'ustice(olmesin)liason!s. *ilborn, +,-..".4/0 1applied here by analogy2, that, 3as betweentwo innocent persons, one of whom must su%ertheconse$uenceof abreachof trust, theonewhomadeit possiblebyhisact of con4dencemust bear the loss3Cordero vs. CabralFacts:Gregoro Z. Ocampoded andeftwdowFepa Cordero and her chdren a surnamedOcampo wth a parce of and whch s a rceand-the southern porton of whch s occuped bydefendant Vctora Cabra who refused tosurrender and vacate sad porton of andsdespte demands of Cordero.Cabra camsthatsheandherpredecessorsnnterest havebeennactua, adverse, peacefuand contnuous possesson of ths porton of andfor a perod of more than 50 years. Panthsaeged that defendants predecessors n nterestnever reay acqured owner of sad and from thedeceased Ocampo through a vad sae but onyas "prospectve owner" because the sae dd notmateraze. So Cabras possesson cant beadverse nor contnuous. Nether dd she acquresad and by prescrpton because the and stted and regstered to Ocampo therefore,'mprescrptbe'.Held:Thedefendants, bytheirownadmission,are in possession of the disputed land. There isnoe!idencethat theywerepossessorsinbadfaith. (owe!er, their good faith ceased when theywere ser!ed with summons to answer thecomplaint. 15rt. /+,, Ci!il Code6 Tacas !s. Tobon,/78hil. 7/9 :-;+;