Sergs Products, Inc. v.

PCI Leasing and Finance, Inc FACTS: Respondent PCI filed a complaint for sum of money with an application of writ of replevin to deliver the machineries and equipment after five days and upon payment. The sheriff seized one machinery from the factory were the petitioners filed a motion for protective order praying to defer the enforcement of the writ of replevin which was opposed by PCI on the ground that the properties were personal and subject to seizure and a writ of replevin. ISSUE: WON the machines were personal which may be a proper subject of a writ of relevin RULING: The contracting parties may validly stipulate that a real property be considered as personal. After agreeing to such stipulation, they consequently stopped from claiming otherwise. In the present case, the lease agreement clearly provides that the machines in question are to be considered as personal properties and can be the subject of a writ of replevin. Accordingly, the petition was denied. Lopez v. Orosa, Jr., and Plaza Theatre, Inc. FACTS: Lopez was engaged in business under the name of Lopez-Castelo sawmill. Orosa invited Lopez to invest in a theatre business which the fromer was forming. Lopez agreed to supply lumber for the construction and that the payment would be on demand and not cash on delivery basis. However, lopez was only paid in the amount of 20,845.50 leaving a balance of 41,772.35. Lopez filed a case against Orosa and Plaza Theatre to be solidarily liable for the unpaid balance and in case defendants failed to pay, the land and building or the shares of stock should be sold in public auction to satisfy the unpaid balance. ISSUE: WON the lien for the materials used in the construction of the building attaches to said structure alone and does not extend to the land on which the building is adhered to. RULING: The lien so created attaches merely to the immovable property for the construction and repair of which the obligation was incurred. Therefore, the lien in favor of the appellant for the unpaid value of the lumber used attaches only to said structure and to no other property of the obligors.

Tsai v. CA FACTS: Respondent EVERTEX obtained a loan from petitioner PBCom. As security for the loan, EVERTEX executed in favor of PBCom, a deed of Real and Chattel Mortgage over the lot where the the factory stands and the chattels located therein. PBCom granted a second loan to EVERTEX and was secured by chattel mortagage enumerated in a list attached thereto on which, EVERTEX purchased various machines and equipments. Upon EVERTEX failure to meet the obligation, PBCom commenced for the extrajudicial foreclosure proceeding where a public auction was held and PBCom as the highest bidder, a certificate of Sale was issued in favor of the latter and consolidated its ownership over the properties. It lease and sold the factory lock, stock and barrel to Tsai including contested machineries. EVERTEX filed a complaint for annulment of sale, reconveyance and damages and further avers that the contested properties are not included in the real and chattel mortgage. ISSUE: Whether the disputed machineries make them immovable under Art 415 (3) and (5) of the Civil Code. RULING: Yes. It is true that the questioned properties appear to be immobile, a perusal of the contract of Real and Chattel Mortgage executed by the parties gives a contrary indication, however, the contested afteracquired properties in 1981 could not be involve in the 1975 or 1979 mortgage. Wherefore, the petition was denied. Yap v. Tanada FACTS: GPI Inc. filed a complaint against Yap and his wife seeking recovery of a certain amount representing the balance and installation cost of a water pump in the latters premises. A judgment was rendered requiring the couple to pay the unpaid balance plus interest to GPI Inc. the pump was levied and scheduled for execution. But due to pendency of Yaps MR, suspension of sale was ordered but the copy of the said suspension was not transmitted to the sheriff which the latter went ahead with the scheduled auction and sold the property to GPI Inc. as the highest bidder. Yap argues that the sale is against the Rules of Court, notice by publication in case of execution of sale of real property. ISSUE: WON the water pump in question is an immovable. RULING: No. the civil code considers immovable property as anything attached to an immovable in a fixed manner, that in cannot be separated without breaking the material and deterioration of the object.

Obviously, the separation or removal of the pump nothing more complicated than loosening of bolts or dismantling of other fasteners. Mindanao Bus Company v. City Assessor and Treasurer FACTS: Petitioner MB Company solely engaged in transporting passengers and cargo by motor truck authorized in Mindanao to collect rates approved by the Public Service Commission. Respondent City Assessor and Treasurer assess the petitioners properties and it was alleged that the machineries are sitting on a cement or wooden platforms and that the petitioner is the owner of the land where it maintains and operates a repair shop, blacksmith and carpentry shops with petitioners machineries are placed therein. The respondent assessed the above mentioned machineries at 4,000 which the petitioner appealed the on the ground that the same are not real property. Respondent contended that said equipment are immobilized by destination in accordance with Art. 415 (5) of the Civil Code. ISSUE: WON the equipments in question are immovable or movable properties. RULING. The equipments in question are movables. It must be essential and principal elements of an industry or works without which such industry or woks of transporting would be unable to function or carry on the industrial purpose of transporting for it was established. FELS Energy Inc v. The Province of Batangas FACTS: NPC entered into a lease contract with Polar Energy over diesel engine power barges moored at Batangas. The contract states that NPC will be responsible for the payment of taxes imposed by the government. Subsequently, POLAR assigned its rights under the agreement of FELS Energy Inc. FELS received an assessment value of real property taxes from the Assessor of Batangas which FELS Inc referred to NPC who sought for reconsideration that barges are non- taxable items. ISSUE: WON the power barges which are and movable, are personal properties and therefore not subject to real property tax. RULING: Yes. Power barge are real property and subject to real tax property. Civil code provide that docks and structures which, though floating are intended by their nature and object to remain at a fixed place on a river, lake, or coast are considered an immovable property.

MIAA v. Court of Appeals FACTS: MIAA received final notices of real estate tax delinquency from the city of Paranaque. It issued notices of levy and warrants levy on the airport lands and buildings. The city of Paranaque contends that section 193 of the local government code expressly withdrew the tax exemption privileges of governmentowned and controlled corporations upon its effectivity. MIAA avers that it exempt from tax because it is owned by the State. ISSUE: WON airport land and buildings of MIAA are exempt from real estate tax. RULING: Yes. MIAA is a government instrumentality vested with corporate powers to perform efficiently its governmental function. Hence, the subject properties are not subject to tax. Chavez v. National Housing Authority FATCS: Pres. Aquino issued a memorandum order approving and directing the implementation of the comprehensive and integrated metropolitan manila waste management plan ordering the NHA to conduct feasibility study of a low cost housing plan particularly in the smokey mountain. After Pres. Aquinos term, Pres. Ramos issued a proclamation order increasing the proposed area. Hence, petitioner Chavez contended that respondents has no authority to reclaim foreshore and submerged land. ISSUE: WON respondent NHA has the authority to reclaim the foreshore and submerged land. RULING: Yes. The National Housing Authority is a government agency tasked to dispose public land under its charter it is an end-user agency authorized by law to administer and dispose of reclaimed lands. Republic of the Philippines v. Court of Appeals FACTS: Morato filed for a patent of a parcel of land in Calaug, Quezon, which was approved, provided that the land shall not be encumbered or alienated within a period of 5 years. Later it was established to be a portion of Caluag Bay, which was 6 feet deep during high tides and 3 feet during low tides. It was observed by the Director of Lands that Morato leased the l

and to Avincula and was mortgage to Co. the Director file a suit for violation of the 5 year prohibitory period and the patent should be cancelled and revert back to the state. ISSUE: WON there is a violation of the prohibition of the patent and thus, the subject land revert back to the state. RULING: Yes. The lease was an encumbrance included in the prohibition of the patent because it impairs the use of the land by Morato herself. Moreover, the property became a foreshore land because it turned in to a portion of land which was covered of water whether high tide or low tide. Thus, the land can no longer be the subject of a patent and must be returned to the state. Rabuco v. Villegas FACTS: By virtue of RA No. 3120, the congress converted the lots in question together with another lot in Malate that are reserved as communal property into disposable or alienable lands of the state. It converts into small subdivision lot for sale on an installment basis to the tenants or bona fide occupants thereof and expressly prohibited ejectment and demolition of petitioners homes. ISSUE: WON RA No. 3120 is constitutional. RULING: Yes. The lots in question are manifestly owned by the city in its public and governmental capacity and are therefore public property over which the congress had absolute control. Thus, it is simply a manifestation of its right and power to deal with the state property. Macasiano v. Diokno FACTS: The Municipal council of Paranaque passed an ordinance for the closure of the streets in Baclaran for the establishment of the flea market and authorizing the mayor to enter in to contract with any service cooperative (Respondent Palanyag) with the obligation to remit dues to the treasury. Consequently, market stalls were put up by Palanyag. Petitioner Macasiano ordered for the destruction and confiscation of the stalls. ISSUE: WON the ordinance authorizing the lease and use of public use is valid.

RULING: No. the LGUs have no authority whatsoever to control or regulate the use of public properties unless authority is vested upon them by Congress.