BPI vs.

Intermediate Appellate Court GR# L-66826, August 19, 1988

CORTES, J:
Facts: Rizaldy T. Zshornack and his wife maintained in COMTRUST a dollar savings account and a peso current account.
An application for a dollar drat was accomplished by Virgillo Garcia branch manager of COMTRUST payable to a certain
Leovigilda Dizon. In the PPLICtion, Garcia indicated that the amount was to be charged to the dolar savings account of
the Zshornacks. There wasa no indication of the name of the purchaser of the dollar draft. Comtrust issued a check
payable to the order of Dizon. When Zshornack noticed the withdrawal from his account, he demanded an explainaiton
from the bank. In its answer, Comtrust claimed that the peso value of the withdrawal was given to Atty. Ernesto
Zshornack, brother of Rizaldy. When he encashed with COMTRUST a cashiers check for P8450 issued by the manila
banking corporation payable to Ernesto.
Issue: Whether the contract between petitioner and respondent bank is a deposit?
Held: The document which embodies the contract states that the US$3,000.00 was received by the bank for
safekeeping. The subsequent acts of the parties also show that the intent of the parties was really for the bank to safely
keep the dollars and to return it to Zshornack at a later time. Thus, Zshornack demanded the return of the money on
May 10, 1976, or over five months later.
The above arrangement is that contract defined under Article 1962, New Civil Code, which reads:
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 of 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.

CA Agro Industrial Development Corp., vs Court of Appeals GR# 90027 March 3, 193
DAVIDE, JR., J:
Facts: Petitioner and the spouses Ramon and Paula Pugao entered into an agreement whereby the former purchased
from the latter two (2) parcels of land. Among the terms and conditions of the agreement were that the titles to the lots
shall be transferred to the petitioner upon full payment of the purchase price and that the owner's copies of the
certificates of titles thereto, and that title shall be deposited shall be deposited in a safety deposit box of any bank.
Petitioner and the Pugaos then rented Safety Deposit Box of private respondent Security Bank and Trust Company.
Thereafter, a certain Mrs. Margarita Ramos offered to buy from the petitioner the two (2) lots. Mrs. Ramos demanded
the execution of a deed of sale which necessarily entailed the production of the certificates of title. In view thereof,
Aguirre, accompanied by the Pugaos, then proceeded to the respondent Bank to open the safety deposit box and get
the certificates of title. However, when opened in the presence of the Bank's representative, the box yielded no such
certificates.
Issue: Is the contractual relation between a commercial bank and another party in a contract of rent of a safety deposit
box with respect to its contents placed by the latter one of bailor and bailee or one of lessor and lessee?
Held: The contract for the rent of the safety deposit box is not an ordinary contract of lease as defined in Article 1643 of
the Civil Code. However, We do not fully subscribe to its view that the same is a contract of deposit that is to be strictly
governed by the provisions in the Civil Code on deposit; the contract in the case at bar is a special kind of deposit. It
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cannot be characterized as an ordinary contract of lease under Article 1643 because the full and absolute possession
and control of the safety deposit box was not given to the joint renters the petitioner and the Pugaos. The guard key
of the box remained with the respondent Bank; without this key, neither of the renters could open the box. On the other
hand, the respondent Bank could not likewise open the box without the renter's key. In this case, the said key had a
duplicate which was made so that both renters could have access to the box.

Durban Apartments Corporation v Pioneer Insurance and Surety Corporation

Facts: Pioneer Insurance and Surety Corporation, by right of subrogation, filed a Complaint for Recoveryof Damages
against Durban Apartment Corporation. Pioneer Insurance and Surety Corporation is the
insurer of Jeffrey S. See,s 2001 Suzuki Grand Vitara. Loss occured when Sees Vitara was carnapped
while it was in the possession of petitioner Durban Apartment Hotel.
Issue: WON there exist a contract of deposit
Held: there exist a contract of necessary depositArticle 1962, in relation to Article 1998, of the Civil Code defines a
contract of deposit and anecessary deposit made by persons in hotels or inns:Art. 1962. A deposit is constituted from
the moment a person receives a thingbelonging 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 isno deposit but some
other contract.Art. 1998. The deposit of effects made by travelers in hotels or inns shall also beregarded as necessary.
The keepers of hotels or inns shall be responsible for them asdepositaries, provided that notice was given to them, or to
their employees, of the effectsbrought by the guests and that, on the part of the latter, they take the precautions
whichsaid hotel-keepers or their substitutes advised relative to the care and vigilance of theireffects. Facts shows that
the contract of depost was perfectedfrom Sees delivery, when he handed over to Justimbaste the keys to his vehicle,
which Justimbaste receive with the obligation of the safely keepingand returning it. Evidence was show that Justimbaste
issued a valet parking customer claim stub.

CENTRAL BANK v. MORFE

July 5, 2013 Leave a comment
CENTRAL BANK v. MORFE
FACTS: First Mutual Savings and Loan Organization encourage savings among its members and extend financial
assistance thru loans. Central bank said that the Organization and others with similar nature are banking institutions and
that the Org have never been authorized. CB applied for SW because of the Orgs illegal receipt of deposits of money for
deposit, disbursementswithout compliance with RA 337. The SW includes articles such as book of original entryand
others. They said that the SW is general in its terms and that the use of the word and others permits the unreasonable
search and seizure of documents which have no relation to any specific criminal act.
HELD: SW is upheld.
Depending on the circumstances, while in one instance the particular wording of the warrant may make it assume
the character of a general warrant, in another context it may be considered perfectly alright.
SW only for one offense, if issued for more than two, it is void. Scatter shot warrant.
In illegal possession of shabu, marijuana, paraphernalia- one SW ok!
SW may be partially void
Undetermined amount of marijuana ok!
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Purpose of Particularity of Description:

1. Readily identify the items to be seized, thus prevent them from seizing the wrong items
2. Leave officers with no discretion regarding articles to be seized and thus prevent unreasonable searches and
seizure
Not required that technical precision of description be required
narcotics paraphernalia, any and all narcotics, and a quantity of loose heroin- ok!
and the like- not necessarily general warrant
Where should the requisite description appear- in the caption or body of the warrant? Body sufficient.
What if theres discrepancy between the address in the caption and in the body? Not sufficient to invalidate. It is
sufficient as long as you can identify the place intended and distinguish it from other places in the community.

FIRST DIVISION
[G.R. No. L-4300. March 21, 1908. ]
MARIA BARRETTO, administratrix of the estate of Marcelo Dominguez, deceased, Plaintiff-Appellee, v. LEONA
REYES, Defendant-Appellant.
Kincaid and Hurd, for Appellant.
Manly and Gallup and Hartigan Rohde and Gutierrez, for Appellee.
SYLLABUS
1. DEPOSIT. A transaction held not to constitute a deposit, although so termed by the contracting parties.
2. DAMAGES ON BREACH OF CONTRACT. The measure of damages stipulated for by parties to a valid contract will be
adopted by the court in rendering judgment thereon.
DECISION
TRACEY, J.
On June 30, 1898, the defendant and Marcelo Dominguez, the plaintiffs intestate, executed an agreement containing
the following clause:jgc:chanrobles.com.ph
"I, Doa Leona Reyes, widow of Don Teodoro Durante, do hereby acknowledge that I have on this date received from
Don Marcelo Dominguez, a Peninsular Spaniard, married, and a resident of this town, the amount of 7,556 cavanes of
palay, as a deposit without interest, which palay, clean and of good weight, I promise to deliver at the store of Sr.
Dominguez on or before the 15th of June of the next year, 1899.
"In case that on the aforesaid date I am not able to deliver the whole number of cavanes as above stated, I promise to
liquidate any undelivered balance and reduce the same to money, at the highest price for which the product may be
sold in Nueva Caceres, and the resulting amount I likewise agree to pay for in palay, clean and of good weight, at this
store on the 15th of June of the following year, 1900, at the rate of 30 provincial gantas for each peso."cralaw virtua1aw
library
The testimony established these additional facts:chanrob1es virtual 1aw library
That the defendant had in reality received from Dominguez not palay but money, estimated according to a standard not
shown, as the equivalent of the palay mentioned the result of the settlement of previous transactions between them;
that during the absence of Dominguez from the province, he left his affairs in charge of an agent, whose powers
included the carrying out of this contract; that the defendant made delivery on account, amounting to 253 cavanes,
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leaving a balance of 7,302 cavanes undelivered, and on May 14, 1903, the defendant offered in writing to settle at 2
pesos a cavan.
We also take judicial notice of the fact that a cavan contains 25 gantas.
This peculiar contract, locally known as bulbulauen, presents difficulties of construction but is not necessarily
unconscionable, although its event is at the risk of the market. There is, in fact, no deposit and such is not the true
nature of her transaction. The distant capitalist contributes his money with which the local merchant is to buy a stock of
palay, having the entire season ahead in which to take advantage of the fluctuations in the market and the necessities of
the local growers before the amount due in palay is delivered or its value is liquidated, with an additional season in
which to make himself good in the amount ascertained by the liquidation. The fixing of the ultimate price of 1 peso for
30 gantas, equivalent to 1 1/5 cavanes, obviously secures the party advancing the money against a fall in price during
the second year, while not depriving the dealer of the opportunity to buy at the cheapest rate in the interval.
In this instance it seems that about the date of the contract the price of palay was under 1 peso, but owing to rinderpest
among the working cattle and to the insurrection, quotation steadily rose, at time reaching from 5 to 6 pesos a cavan.
The trial judge assessed the damages at the market price on the date of his decision, giving a judgment for the return of
7,302 cavanes or the recovery of its value at the rate of 3 pesos a cavan. We are of the opinion that he should rather
have followed the method of ascertaining damage provided in the contract itself, which involved no illegality and no and
no oppressive penalty.
There was much conflicting testimony as to the value of the grain at different periods, and especially in the year 1900,
owing to the disordered condition of the country. The date of liquidation was set as June 15, 1899, and the price in that
year has been variously estimated by different witnesses at P1.25, P1.31, and upward, but we think, in view of all the
testimony, a fair maximum figure for that date is P1.50, which would liquidated the undelivered balance of P7,302
cavanes at P10,953.75. This is the true measure of damages, as is seem from following out the process of the contract,
the next step according to which is to ascertain the equivalent of this sum in cavanes of palay, at the rate of 30 gantas,
that is to say, at the rate of P0.83 1/3 for each cavan, resulting in 13,144 cavanes. This is the quality of palay to the
delivery of which the plaintiff, under the contract, is entitled, and the amount of money to which, in default of such
delivery, she has a right to be paid is its value at that time at the contract rate of P0.83 1/3, to wit, P10,953.75, with
interest. In other words, the effect of the contract is to fix the damages by the price at the date of liquidation, although
finally payable one year thereafter.
Our judgment, therefore, is that the plaintiff recover from the defendant 13,144 cavanes of palay, or in lieu thereof, at
the option of the defendant, P10,953.75, with interest thereon at the rate of 6 per cent per annum from the 15th of
June, 1900, without costs of this instance, and the judgment of the Court of First Instance is modified accordingly. So
ordered.
Arellano, C.J. Torres, Mapa and Johnson, JJ., concur.
Carson, J., reserves his vote.
Separate Opinions

WILLARD, J., dissenting:chanrob1es virtual 1aw library

I think that judgment should be entered in favor of the plaintiff for the market value on June 13, 1900, of 7,302
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cavanes of rice (palay), with interest thereon at 6 per cent per annum from the time demand for payment was first
made in 1903.
The court below disregarded the terms of the contract providing for a reduction on June 13, 1899, to money of the
amount of rice not then delivered, at its then highest market price, and the subsequent second reduction of this amount
of money to rice at the rate of 30 gantas for each peso. Had the contract been properly construed, the plaintiff would, in
any opinion, have been entitled to a larger recovery. But inasmuch as he has not appealed, he can not insist upon a
revision of this error.