GR No. L-18456 Case Digest
GR No. L-18456 Case Digest
GR No. L-18456 Case Digest
L-18456
FACTS:
On December 14, 1959, defendant Rufino and his mother, Juana Gonzales borrowed legal
tender from the plaintiff worth P2,550.00, payable for 6 months. As a security, the defendant
executed the Deed of Real Estate and Chattel Mortgages. Juana hypothecated her land and
Rufino mortgaged his two-story residential house constructed on Atty. Castro’s lot and his motor
truck.
Defendants failed to pay on the demand date and 2 extension dates. First extension is on June
30, 1960. Again, the defendant failed to pay. They seek a second time extension. Defendant
Pineda wrote a document entitled “Promise” not seeking for another extension and explicitly
pronounced that the plaintiff could proceed to enforce the provision in the mortgage contract.
For the third time, defendants refused to obey the obligation.
On August 10, 1960, plaintiff filed a complaint for foreclosure of the mortgage and its
corresponding damages. Defendants admitted that the loan was overdue. Defendants only
denied that they unreasonably failed and refused to pay their obligation. Lower court grant
defendants to pay the unsettled debt until January 31, 1961.
On September 30, 1960, plaintiff filed a Motion for Summary Judgment, claiming that the
Answer failed to tender any genuine and material issue. On November 11, 1960, parties
submitted a Stipulation of Facts. Defendants admitted their indebtedness, the authenticity and
due execution of the Real Estate and Chattel Mortgages. Lower court ordered Juana Gonzales
and spouses Rufino Pineda and Ramona Reyes to pay jointly to the Plaintiff and deliver the
personal properties to the Provincial Sheriff. Defendant saw a single error of the Judgement by
the lower court, that the House of defendant Rufino Pineda was erected on Atty. Castro’s lot, a
third person, be subject to delivery of the property.
ISSUE:
Whether or not the mortgaged house of Rufino Pineda be not considered as movable property.
HELD:
Yes.
In this case, the house in question was treated as personal or movable property. Tracing in the
Deed of Chattel Mortgage made by Rufino Pineda, he classified his residential house and a
truck as “my personal properties.” Rufino Pineda himself grouped the house with the truck,
inherently a movable property. The subject house was made of light materials and its size is
small.
Applying the doctrine of estoppel, the deed of chattel was clear that parties expressly agreed to
consider the house as a chattel due to its smallness and light materials. Such expression in the
deed estop him from claiming.
A house be considered immovable when a building or a house used strong materials which
intended the structure permanently adhered to the land (citing Iya cases) and a building is worth
more than Php 62,000 attached permanently to the soil (citing Lopez v Orosa)