G.R. No. 129918 Case Digest

G.R. No. 129918, July 9, 1998

PNB

vs Hon. Marcelino Sayo, Noahs Ark Sugar Refinery , Alberto Looyuko, Jimmy Go and Wilson Go

Facts:

Noahs Ark issued several warehouse reciepts covering sugar deposits by Rosa Sy, RNS Merchandising and St. Therese Merchandising. Later, 4 of these receipts were negotiated to Luis Ramos and Cresencia Zoleta. Ramos and Zoleta later used these receipts to secure a loan with PNB.

Ramos and Zoleta failed to pay the loan, so PNB is now demanding for the delivery of the sugar deposit covered by the warehouse receipts. Noahs Ark refused to deliver such, and claims ownership over sugar deposits. For such reason, PNB filed a complaint for specific performance with damages and writ of attachment against Noahs Ark.

RTC Manila denied the writ of attachment.

Noahs Ark claim that in an agreement, defendants agreed to sell Rosa Sy of RNS Merchandising and Teresita of St. Therese Merchandising the volume of sugar deposited for 63M. They also claim that the vendees and first endorsers of the receipts did not acquire ownership, thus the subsequent endorsers did not acquire a better right of ownership also.

Rosa Sy and Teresita Ng is saying that the transaction between them and defendants is a simulated sale, thus they are not answerable in damages to him. PNB motion for summary judgment, thereupon filed a Petition for Certiorari with CA.

CA ordered RTC to render a summary judgment in favor of PNB.

Trial court rendered judgment dismissing plaintiffs complaint against private respondents for lack of cause of action and likewise dismissed private respondents counterclaim against PNB and of the Third-Party Complaint and the Third-Party Defendants Counterclaim. On September 4, 1992, the trial court denied PNBs Motion for Reconsideration.

On June 9, 1992, the PNB filed an appeal from the RTC decision with the Supreme Court, G.R. No. 107243, by way of a Petition for Review on Certiorari under Rule 45 of the Rules of Court.

Ruling:

SC: (a) to deliver to the petitioner Philippine National Bank, the sugar stocks covered by the Warehouse Receipts/Quedans which are now in the latters possession as holder for value and in due course; or alternatively, to pay (said) plaintiff actual damages in the amount of P39.1 million, with legal interest thereon from the filing of the complaint until full payment; and

(b) to pay plaintiff Philippine National Bank attorneys fees, litigation expenses and judicial costs hereby fixed at the amount of One Hundred Fifty Thousand Pesos (P150,000.00) as well as the costs.

While PNB is entitled to the sugar stocks as endorsee of the receipts, delivery to it shall only be effected upon payment of the storage fees. Because it is imperative to the right of the warehouse man to demand payment of his lien.