[EXTRAJUDICIAL DEPOSIT-NECESSARY DEPOSIT]
07 DURBAN APARTMENTS CORP.vs PIONEER INSURANCE AND SURETY
CORP
January 12, 2011 | Nachura, J. |
Petitioner/s: Durban Apartments Corporation, doing business under the name and
style of City Garden Hotel
Respondent/s: Pioneer Insurance and Surety Corporation
Doctrine: Art. 1998. The deposit of effects made by travelers in hotels or inns shall
also be regarded as necessary. The keepers of hotels or inns shall be responsible for
them as depositaries, provided that notice was given to them, or to their employees,
of the effects brought by the guests and that, on the part of the latter, they take the
precautions which said hotel-keepers or their substitutes advised relative to the care
and vigilance of their effects.
Facts:
● Jeffrey S. See checked in at the City Garden Hotel in Makati cor Kalayaan
Avenues, Makati City before midnight
○ It’s parking attendant, Vincente Justimbaste got the key to See’s
Susuki Grand Vitara and parked it. At 1AM See was awakened by a
call from the Hotel Chief Security Officer who informed him that his
Vitara was carnapped while it was left unattended at the parking
area of Equitable PCI Bank between 12mn and 1am.
● The car was insured by Pioneer Insurance so See filed a claim to receive the
proceeds of the policy
○ Pioneer hired Vespers to investigate veracity of See’s claim, along
with the claims evaluator of Pioneer which pegged at P1,1630, 250
as sum for his claim.
○ Vespers found out that it was normal practice for the hotel to take
the keys of the guests as soon as they reached the lobby entrance
to park their cars. Since they only had 12 parking spots, City
Garden Hotel made a deal with Equitable PCI Bank to use their
parking at night.
○ Vespers also found out that a Starex was also carnapped from that
place barely a month before the incident (Vespers was also tasked
to investigate this incident)
■ This was admitted in sworn statement of Justimbaste
● Pioneer Insurance required See to sign a Release of Claim and Subrogation
Receipt, and finally paid him the sum of ₱1,163,250.00 for his claim.
○ Pioneer then sent multiple demand letters to Durban for the
reimbursement of the claims, but Durban did not pay
● July 2003: Pioneer Insurance and Surety Corp by right of subrogation, filed
with RTC of Makati, a Complaint for Recover of Damages against Durban
Apartments Corporation, doing business under the name and style of City
Garden Hotel
RTC: Durn to pay Pioneer P1,163,250 w/ legal interest until oblig fully paid
CA: AFFIRMED RTC; Durban solely liable to Pioneer for the loss of See’s vehicle
Durban appealed to the SC averring its liability
Ruling:
W/N a contract of necessary deposit exists between See and Durban, thus
making Durban liable to Pioneer - YES
Durban’s Arguments:
 See did not check in but was merely a guest of Ching Montero
 It was See who requested that his Vitara be parked at any available parking
space and it was parked at the Equitable Bank parking area, which was
within See’s view, while he and Montero were waiting in front of the hotel
o valet parking services is a special privilege; it does not include
responsibility for any losses or damages to motor vehicles and its
accessories in the parking area; and the same holds true even if it
was See himself who parked his Vitara within the premises of the
hotel as evidenced by the valet parking customer’s claim stub
issued to him; the carnapper was able to open the Vitara without
using the key given earlier to the parking attendant and
subsequently turned over to See after the Vitara was stolen;
Court’s Explanation:
 Article 1962, in relation to Article 1998, of the Civil Code defines a
contract of deposit and a necessary deposit made by persons in hotels
or inns:
o Art. 1962. A deposit is constituted from the moment a person
receives a thing belonging to another, with the obligation of safely
keeping it and returning the same. If the safekeeping of the thing
delivered is not the principal purpose of the contract, there is no
deposit but some other contract.
o Art. 1998. The deposit of effects made by travelers in hotels or inns
shall also be regarded as necessary. The keepers of hotels or inns
shall be responsible for them as depositaries, provided that notice
was given to them, or to their employees, of the effects brought by
the guests and that, on the part of the latter, they take the
precautions which said hotel-keepers or their substitutes advised
relative to the care and vigilance of their effects.
 Pioneer proved allegations in complaint, i.e., a contract of necessary deposit
existed between the insured See and Durban
o Upon arrival at Hotel, See gave notice to the doorman and parking
attendance regarding his car and entrusted his car keys to the
parking attendant, who gave See a customer claim stub and parked
the Vitara at the Equitable PCI Bank parking area, and placed the
ignition key inside a safety key box while See proceeded to the
hotel lobby to check in.
o The Equitable parking area became an annex of City Garden Hotel
when the management of the said bank allowed the parking of the
vehicles of hotel guests thereat in the evening after banking hours.
 See deposited his vehicle for safekeeping with Durban through its employee,
petitioner, Justimbaste. In turn, Justimbaste issued a claim stub to See.
Thus, the contract of deposit was perfected from See’s delivery, when he
handed over to Justimbaste the keys to his vehicle, which Justimbaste
 received with the obligation of safely keeping and returning it. Ultimately,
petitioner is liable for the loss of See’s vehicle..

Dispositive
WHEREFORE, the petition is DENIED. The Decision of the Court of Appeals in CA-
G.R. CV No. 86869 is AFFIRMED with the MODIFICATION that the award of
attorney’s fees is reduced to ₱60,000.00. Costs against petitioner.