Lessons Applicable: Last Clear Chance (Torts and Damages)

Laws Applicable: Article 1173

Canlas vs CA
FACTS:

August, 1982: Osmundo S. Canlas executed a Special Power of

Attorney authorizing Vicente Maosca to mortgage 2 parcels of land
situated in BF Homes Paranaque in the name of his wife Angelina Canlas.

Subsequently, Osmundo Canlas agreed to sell the lands to Maosca for

P850K, P500K payable within 1 week, and the balance serves as his
investment in the business. Maosca issued 2 checks P40K and P460K.
The P460K lacked sufficient funds.
September 3, 1982: Maosca mortgage to Atty. Manuel Magno the
parcels of lands for P100K with the help of impostors who misrepresented
themselves as the Spouses Canlas.
September 29, 1982: Maosca was granted a loan by the respondent
Asian Savings Bank (ASB) for P500K with the parcels of land as security
and with the help of the same impostors. The loan was left unpaid
resulting in a extrajudicially foreclosure on the lots.
January 15, 1983: Canlas wrote a letter informing ASB that the
mortgage was without their authority. He also requested the
sheriff Contreras to hold or cancel the auction. Both parties refused.
The spouses Canlas filed a case for annulment of deed of real estate
mortgage with prayer for the issuance of a writ of preliminary injunction
RTC: restrained the sheriff from issuing a Certificate of Sheriffs Sale and
annulled the mortgage
CA: reversed holding Canlas estopped for coming to the bank
with Maosca and letting himself be introduced as Leonardo Rey

ISSUE: W/N the ASB had was negligent due to the doctrine of last clear chance

HELD: YES. Petition is GRANTED

Article 1173. The fault or negligence of the obligor consist in the

omission of that diligence which is required by the nature of the obligation
and corresponds with the circumstances of the persons, of the time and of

the place. When negligence shows bad faith, the provisions of articles
1171 and 2201, paragraph 2, shall apply
The degree of diligence required of banks is more than that of a good
father of a family
not even a single identification card was exhibited by the said
impostors to show their true identity
acted simply on the basis of the residence certificates bearing
signatures which tended to match the signatures affixed on a previous
deed of mortgage to Atty. Magno
previous deed of mortgage did not bear the tax account
number of the spouses as well as the Community Tax Certificate of
Angelina Canlas
doctrine of last clear chance
where both parties are negligent but the negligent act of one is
appreciably later in point of time than that of the other, or where it is
impossible to determine whose fault or negligence brought about the
occurrence of the incident, the one who had the last clear opportunity to
avoid the impending harm but failed to do so, is chargeable with the
consequences arising therefrom
the antecedent negligence of a person does not preclude
recovery of damagescaused by the supervening negligence of the latter,
who had the last fair chance to prevent the impending harm by the
exercise of due diligence
Antecedent Negligence: Osmundo Canlas was negligent in giving Vicente
Maosca the opportunity to perpetrate the fraud, by entrusting him the owner's
copy of the transfer certificates of title of subject parcels of land

Supervening Negligence: Failing to perform the simple expedient of faithfully

complying with the requirements for banks to ascertain the identity of the persons

transacting with them - ASB bears the loss

Canlas went to ASB with Maosca and he was introduced as Leonardo Rey.

He didn't correct Maosca. However, he did not know that the lots were being
used as a security for he was there to make sure that Maosca pays his debt so he
cannot be estopped from assailing the validity of the mortgage

But being negligent in believing the misrepresentation by Maosca that

he had other lots and that the lot were not to be used as a security, Canlas was
negligent and undeserving of Attorney's fees.

the contract of mortgage sued upon was entered into and signed by
impostors who misrepresented themselves as the spouses Osmundo
Canlas and Angelina Canlas = complete nullity