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CASE 1. TANTANO VS.

CABOVERDE she should not pay the full amount considering that the value of the
FACTS: Petitioners files a complaint of annulment of the Deed of Sale van was only ₱300,000.00.
of lots from their parents Maximo and Dominalda. During the CA rendered a Decision affirming the decision of the RTC. 
pendency of the case, the parties executed a Partial Settlement ISSUE: WON Enriquez should be made liable for the full amount of
Agreement (PSA) fixing the share of the uncontroverted properties the bond paid by respondent 
among themselves, in particular, the adverted additional eight (8) HELD: Yes. Replevin is an action for the recovery of personal
parcels of land including their respective products and property. It is both a principal remedy and a provisional relief. When
improvements. Under the PSA, Dominalda’s daughter, Josephine, utilized as a principal remedy, the objective is to recover possession
shall be appointed as Administrator. The PSA provided that of personal property that may have been wrongfully detained by
Dominalda shall be entitled to receive a share of one-half (1/2) of the another. When sought as a provisional relief, it allows a plaintiff to
net income derived from the uncontroverted properties. The PSA retain the contested property during the pendency of the action.
also provided that Josephine shall have special authority, among As a provisional remedy, a party may apply for an order for
others, to provide for the medicine of her mother. the delivery of the property before the commencement of the action
Both Annabelle Saldia and Jesus Tan then took their or at any time before an answer is filed.  Rule 60, Section 2 requires
respective oaths of office and filed a motion to fix and approve bond that the party seeking the issuance of the writ must first file the
which was approved by the trial court over petitioners’ opposition. required affidavit and a bond in an amount that is double the value
Petitioners harp on the fact that the court a quo failed to of the property.
require Dominalda to post a bond prior to the issuance of the order Once the affidavit is filed and the bond is approved by the
appointing a receiver, in violation of Section 2, Rule 59 of the Rules court, the court issues an order and a writ of seizure requiring the
of court sheriff to take the property into his or her custody. If there is no
Respondents insist that where there is sufficient cause to further objection to the bond filed within five (5) days from the
appoint a receiver, there is no need for an applicant’s bond because taking of the property, the sheriff shall deliver it to the applicant. The
under Sec. 2 of Rule 59, the very purpose of the bond is to answer contested property remains in the applicant's custody until the court
for all damages that may be sustained by a party by reason of the determines, after a trial on the issues, which among the parties has
appointment of a receiver in case the applicant shall have procured the right of possession. 48
such appointment without sufficient cause. She is incorrect. Under the Guidelines on Corporate Surety Bonds: 
Unless and until the Supreme Court directs otherwise, 55 the
Issue: WON posting bond is required in receivership? lifetime or duration of the effectivity of any bond issued in criminal
and civil actions/special proceedings, or in any proceeding or
Held: YES incident therein shall be from its approval by the court, until the
Sec. 2 of Rule 59 is very clear in that before issuing the order action or proceeding is finally decided, resolved or terminated. This
appointing a receiver the court shall require the applicant to file a condition must be incorporated in the terms and condition of the
bond executed to the party against whom the application is bonding contract and shall bind the parties notwithstanding their
presented. The use of the word "shall" denotes its mandatory failure to expressly state the same in the said contract or agreement. 
nature; thus, the consent of the other party, or as in this case, the Of all the provisional remedies provided in the Rules of
consent of petitioners, is of no moment. Hence, the filing of an Court, only Rule 60, Section 2 requires that the amount of the bond
applicant’s bond is required at all times. On the other hand, the be double the value of the property. 
requirement of a receiver’s bond rests upon the discretion of the However, there is a rationale to the requirement that the
court. Sec. 2 of Rule 59 clearly states that the court may, in its bond for a writ of seizure in a replevin be double the value of the
discretion, at any time after the appointment, require an additional property. The bond functions not only to indemnify the defendant in
bond as further security for such damages. case the property is lost, but also to answer for any damages that
may be awarded by the court if the judgment is rendered in
CASE 2. ENRIQUEZ VS. MERCANTILE INSURANCE CO defendant's favor. 
FACTS: Petitioner Enriquez filed a replevin case against Asuten for Thus, the requirement that the bond be double the actual
the recovery of the Toyota Hi-Ace van valued at P300,000.00. She value of the properties litigated upon. Such is the case because the
applied for a bond in the amount of P600,000.00 with respondent in bond will answer for the actual loss to the plaintiff, which
Asuten's favor. The Regional Trial Court approved the bond and corresponds to the value of the properties sought to be recovered
ordered the sheriff to recover the van from Asuten and to deliver it and for damages, if any.59
Any application of the bond in a replevin case, therefore, is
to petitioner. While the van was in petitioner's custody, the Regional
premised on the judgment rendered in favor of the defendant. Thus,
Trial Court dismissed the case without prejudice for failure to
the Rules of Court imply that there must be a prior judgment on the
prosecute. Thus, it ordered the sheriff to restore the van to Asuten. merits before there can be any application on the bond.
When petitioner failed to produce the van, the Regional Trial Court Forfeiture of the replevin bond, therefore, requires first, a
directed respondent to pay Asuten the amount of the bond. judgment on the merits in the defendant's favor, and  second, an
Due to Enriquez's failure to remit the amount, Mercantile application by the defendant for damages. Neither circumstance
Insurance paid Asuten ₱600,000.00 in compliance with RTC. It was appears in this case. The Regional Trial Court would have erred in
also constrained to file a collection suit against Enriquez. In her ordering the forfeiture of the entire bond in Asuten's favor,
defense, Enriquez claimed that her daughter-in-law, Asela, filed the considering that there was no trial on the merits or an application by
Complaint for Replevin in her name and that Asela forged her Asuten for damages. This judgment could have been reversed had
signature in the indemnity agreement. She also argued that she petitioner appealed the Regional Trial Court's May 24, 2004 Order in
could not be held liable since the replevin bond had already expired.  Civil Case No. 10846. Unfortunately, she did not. Respondent was,
RTC ruled in favor of Mercantile Insurance. It found that thus, constrained to follow the Regional Trial Court's directive to pay
non-payment of the premiums did not cause the replevin bond to Asuten the full amount of the bond.
expire. Thus, Enriquez was still liable for the reimbursement made by Respondent paid ₱600,000.00 to Asuten pursuant to a
the surety on the bond.  lawful order of the RTC in Civil Case No. 10846. If there were any
Enriquez appealed with the CA, arguing that the replevin errors in the judgment of the RTC, as discussed above, petitioner
bond had already expired; therefore, she could not have been liable could have appealed this. Petitioner, however, chose to let civil case
under the indemnity agreement. She also averred that even lapse into finality. This case cannot now be used as a substitute for
assuming that she was still liable under the indemnity agreement, her lost appeal.
Hence, the petition was denied.

CASE 3 AGNER VS BPI

FACTS: Spouses Agner obtained a 800K loan from CITIMOTORS.


Spouses executed a promissory note with chattel mortgage over a
Mitsubishi vehicle in favor of Citimotors, Inc. The contract stated that
the spouses would make a monthly payment of 17K and that 6%
interest per month shall be imposed for failure to pay each
installment. The PN also stated that in case of failure to pay, the
entire amount shall be due and payable without need of prior notice
or demand. Citimotors assigned all its interests in the PN to ABN
AMRO BANK, which assigned the same to BPI FAMILY. Spouses
defaulted in payment. BPI sent a demand letter to petitioners,
declaring the entire obligation as due and demandable, and requiring
them to pay 570K or the surrender of the mortgaged vehicle. As the
demand was unheeded, BPI filed an action for REPLEVIN and
DAMAGES before MANILA RTC. A writ of Replevin was issued;
however, the vehicle was not seized. THE RTC and CA ruled for BPI.

Issue: Whether demand is necessary prior to the filing of application


for the writ of replevin.

Whether respondent's remedy of resorting to both actions of


replevin and collection of sum of money is contrary to the provision
of Article 1484 of the Civil Code and the Elisco Tool Manufacturing
Corporation v. Court of Appeals 10 ruling.

Records bear that both verbal and written demands were in fact
made by respondent prior to the institution of the case against
petitioners. Even assuming, for argument's sake, that no demand
letter was sent by respondent, there is really no need for it because
petitioners legally waived the necessity of notice or demand in the
Promissory Note with Chattel Mortgage, which they voluntarily and
knowingly signed in favor of respondent's predecessor-in-interest.

Further, the Court even ruled in Navarro v. Escobido that prior


demand is not a condition precedent to an action for a writ of
replevin, since there is nothing in Section 2, Rule 60 of the Rules of
Court that requires the applicant to make a demand on the
possessor of the property before an action for a writ of replevin
could be filed.

Also, there is no violation of Article 1484 of the Civil Code and the
Court's decision in Elisco Tool Manufacturing Corporation v. Court of
Appeals.

The remedies provided for in Art. 1484 are alternative, not


cumulative. The exercise of one bars the exercise of the others. This
limitation applies to contracts purporting to be leases of personal
property with option to buy by virtue of Art. 1485.

Compared with Elisco, the vehicle subject matter of this case was
never recovered and delivered to respondent despite the issuance of
a writ of replevin. As there was no seizure that transpired, it cannot
be said that petitioners were deprived of the use and enjoyment of
the mortgaged vehicle or that respondent pursued, commenced or
concluded its actual foreclosure. The trial court, therefore, rightfully
granted the alternative prayer for sum of money, which is equivalent
to the remedy of "[e]xact[ing] fulfillment of the obligation."
Certainly, there is no double recovery or unjust enrichment to speak
of.

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