Week 1 - Updates in Accountancy
Week 1 - Updates in Accountancy
OBLIGATIONS
b. Essential Elements
c. Sources of Obligation
i. Law
ii. Contract
a. Dy v. People of the Philippines, GR No. 189081, August 10, 2016
❖ Our law states that every person criminally liable for a felony is also civilly liable.
➢ Felony - Violence (more serious). Punishable by imprisonment.
❖ This civil liability ex delicto may be recovered through a civil action which, under our Rules of
Court, is deemed instituted with the criminal action
❖ civil liability ex delicto survives an acquittal in a criminal case for failure to prove guilt
beyond reasonable doubt.
➢ civil liability ex delicto - civil liability arising from the offense or ex delicto is based on
the acts or omissions that constitute the criminal offense
➢ Civil cases primarily aim for restitution and compensation for the aggrieved party.
Criminal cases, on the other hand, seek to punish the wrongdoer and deter future
crimes
❖ Rules of Court limits this mandatory fusion to a civil action for the recovery of civil liability ex
delicto.
❖ includes a civil liability arising from a different source of obligation, as in the case of a contract.
❖ Where the civil liability is ex contractu, the court hearing the criminal case has no authority to
award damages.
➢ civil liability ex delicto (arising from a crime) and civil liability ex contractu (arising
from a contract).
—
❖ Petitioner Gloria S. Dy (petitioner) seeks the reversal of the decision of the Court of Appeals
(CA) dated February 25, 2009
➢ ordering her to pay Mandy Commodities Company, Inc. (MCCI) in the amount of
P21,706,281.00
❖ On May 1996, petitioner proposed to William Mandy, MCCI's President, the acquisition of a
PANTRANCO property,
➢ Since malaki yung halaga na kailangan
➢ The president of MCCI agreed to obtain a loan from the International China Bank of
Commerce (ICBC).
❖ Petitioner represented that she could facilitate the approval of the loan.
❖ MCCI secured a P20,000,000.00 loan from the International China Bank of Commerce (ICBC)
➢ evidenced by a promissory note
➢ and secured by a chattel mortgage over the warehouses. (Numancia)
❖ Then yung president of MCCI pinagkatiwala niya kay petitioner the obligation to manage the
payment of the loan.
❖ To prevent the foreclosure, Mandy instructed the petitioner to facilitate the payment of the loan.
❖ Pinadala ni Mandy yung checke kay petitioner and he instructed her na gamitin yun para
bayaran yung loan nila.
❖ Pero si petioner kiniclaim niya na inencash niya lng yung checke then binalik niya yun kay
Mandy.
❖ Then yung ICBC, they foreclosed the mortgage property of MCCI kasi di pa rin sila
nakakabayad ng loan.
❖ Then si Mandy kiniclaim niya na dun niya lng din nalaman na hindi naibayad yung checke.
❖ The trial court further made a finding that Mandy and petitioner entered into a contract of
loan.[13] Thus, it held that the prosecution failed to establish an important element of the
crime of estafa—misappropriation or conversion.
❖ Despite the acquittal of Dy, the court ordered her to pay the amount of the checks. (Civilly
liable pa din siya)
❖ CA: The petitioner argue na since acquitted siya sa kaso sa kaniya na stafa, there was
therefore no crime committed.
➢ As there was no crime, any civil liability ex delicto cannot be awarded.
❖ ISSUE (HELD): Does petitioner should still be civilly liable for the crime of estafa when she has
already been acquitted for failure of the prosecution to prove all the elements of estafa? (NO)
❖ In cases where the accused is acquitted on the ground that there is no crime, the civil action
deemed instituted with the criminal case cannot prosper precisely because there is no delict
from which any civil obligation may be sourced.
❖ This is necessarily so because whenever the court makes a finding that the elements of estafa
do not exist, it effectively says that there is no crime. There is no act or omission that constitutes
criminal fraud. Civil liability ex delicto cannot be awarded as it cannot be sourced from
something that does not exist.
iii. Quasi-Contracts
a. PNB v. CA, GR No. 97995, 21 January 1993
❖ https://lawyerly.ph/digest/c7885?user=2547
❖ Then si Security Pacific National Bank (SEPAC) of Los Angeles is meron AGENCY
ARRANGEMENT with Philippine National Bank (PNB)
➢ SEPAC messaged International Department of PNB na bayaran si MATA ng
US$14,000 to MATA by... crediting the latter's account with the Insular Bank of
Asia and America (IBAA), as per order of Star Kist. (utos ni Star Kist)
❖ Then may na notice na error sa transaction yung International Department of PNB, that’s
why minessage nila yung Security Pacific National Bank - SEPAC,
➢ and sabi ng Security Pacific National Bank - SEPAC is dapat daw yung amount is
only US $1,400 and HINDI US$14,000.
❖ 14 days after, PNB made another payment through cashier’s check amounting to
US$14,000 (P97,878.60).
➢ This represent as another transmittal reimbursement from Star Kist (which was
credited to the account of MATA again(
❖ 6 YEARS LATER, after madiscover ng PNB yung error sa second payment ng Star Kist,
They ordered MATA to reimburse the amount of US$14,000 (P97,878.60).
❖ PNB filed a civil case for collection and refund of US$14,000 against Mata
➢ They argue that based on the CONSTRUCTIVE TRUST under Article 1456 of
the Civil Code
➢ it has a right to recover the said amount it erroneously credited
❖ Yung complain ni petitioner has been filed for ALMOST SEVEN YEARS from the time
that petitioner mistakenly made payment to the respondent MATA
❖ ISSUES: Whether or not PNB was correct in arguing that based on constructive
trust, it can still collect the amount from MATA even after more than six years have
already lapsed?
❖ HELD:
❖ Article 1456 - CONSTRUCTIVE TRUSTIf the property is acquired through mistake or
fraud, the person obtaining it is, by force of law, considered a trustee of an implied trust
for the benefit of the person from whom the property comes.
❖ Article 2154 states: - SOLUTIO INDEBITI
➢ If something is received when there is no right to demand it, and it was unduly
delivered through mistake, the obligation to return it arises.
❖ The petitioner naturally opts for the interpretation of constructive Trust since their action
can still prosper because it is still within the prescriptive period - which is within ten
years.
❖ But even though the case constitutes a constructive trust, the present action has been
barred by laches.
➢ Laches - Unreasonable delay in making an assertion or claim.
❖ MATA in receiving $14,000 in their account through Insular Bank for Asia and America,
has no intention to hold it for the beneficiary which is yung PNB.
❖ That’s why the case will fall under Article 2154 - Solutio Indebiti
■ Something is received when there is no right to demand it.
■ The same was duly undelivered through mistakes
❖ While prescription is concerned with the fact of delay, laches deals with the effect of
unreasonable delay.
❖ As between parties where negligence is… imputable to one and not to other, the former
must bear the consequence of its neglect. Hence the petitioner should bear the cost of
its own negligence.
iv. Delict
v. Quasi-Delict
a. Mendoza v. Leonora, GR No. 160110, 18 June 2014
❖ allowed the award of actual, moral, and exemplary damages, as well as attorney's fees
and costs of the suit in favor of respondent Spouses Leonora and Gabriel Gomez
(respondents)
❖ On March 7, 1997, yung sasakyan (Isuzu Elf truck) respondent (Leonora Gomez) na
minamaneho ni Antejenes Perez is nabangga ng isang mayamy transportation bus
which at that time nakaregistered siya under the name of the petitioner (Elvira Lim) and
that time ang nagmamaneho ng sasakyan ay si Mariano Mendoza.
❖ (Boni Serrano Avenue, Valenzuela City) - Yung mayamy bus ay sumingit siya sa truck
line causing significant damage and injuries.
❖ Sinubukan tumakas ni Mendoza pero nahuli siya
❖ Kaya nag pasa ng separate complaint si respondents (Gomez) for damages against the
petitioners, the owner of truck na si Elvira Lim and the driver of the truck na si Mendoza.
❖ seeking actual damages, compensation for lost income, moral damages, exemplary
damages, attorney’s fees and costs of the suit.
➢ exemplary damages - to compensate the plaintiff for their injuries.
❖ According to PO1 Rosales, the Mayamy bus, while traversing the opposite lane, intruded
on the lane occupied by the Isuzu truck.
❖ Sinubukan tumakas ni Mendoza (nagmaneho ng mabilis) pero nahuli din siya
❖ As a result of the incident, nagtamo ng mga injuries yung driver ng truck as well as the
helpers on board of isizu truck.
➢ Umabot ng 11M yung naging medical fee nila.
➢ Shinoulder naman yun lahat ni respondents (Lim and Mendoza)
❖ Yung truck ni Gomez ay yun yung ginagamit nila for their business
➢ Which is yung pagbili ng mga plastic scraps then dinideliver nila yun sa mga
recyling plants that's why importante yung sasakyan sa business nila.
❖ The RTC found that Mendoza is liable for direct personal negligence (under Article
2176 of the Civil Code)
➢ Article 2176. Whoever by act or omission causes damage to another, there being
fault or negligence, is obliged to pay for the damage done. Such fault or
negligence, if there is no preexisting contractual relation between the parties, is
called a quasi-delict and is governed by the provisions of this Chapter
❖ and it also found Lim vicariously liable under Article 2180 of the same Code.
➢ vicariously liable - indirect liability for the actions of a another person, such as a
subordinate or child.
➢ Article 2180. The obligation imposed by Article 2176 is demandable not only for
one’s own acts or omissions, but also for those of persons for whom one is
responsible. x x x x Employers shall be liable for the damages caused by their
employees and household helpers acting within the scope of their assigned
tasks, even though the former are not engaged in any business of industry.
❖ The RTC awarded actual, moral, and exemplary damages, attorney's fees, and costs of
the suit to respondents.
➢ Ordering the [petitioners] except Enriquez to pay [respondents], jointly and
severally
❖ The CA affirmed the RTC's decision with modifications, deleting the award for unrealized
income.
❖ DISPOSITION: Affirmed
➢ DECLARE Mariano Mendoza and Elvira Lim solidarily liable to respondent
Spouses Leonora and Gabriel Gome
➢ MAINTAIN the award of actual or compensatory damages
➢ GRANT additional actual or compensatory damages in for the medical expenses
shouldered by respondent with legal interest
➢ DELETE the award of moral damages;
➢ MAINTAIN the award of exemplary damages at P50,000.00;
➢ DELETE the award of attorney’s fees; and
➢ MAINTAIN the award of costs of suit.
❖ In the case of Chaves v. Gonzales, the court ruled in favor of Chaves, finding Gonzales liable for
breaching the oral contract to repair the typewriter and awarded damages for the cost of labor and
missing parts, but rejected claims for moral and temperate damages and attorney's fees.
❖ About the complaint of Chavez who is not satisfied with the decision rendered by the court.
❖ In October 1963, si respondent humingi siya ng P6.00 kay petitioner para sa pagbili niya ng spare parts
and bikini gay naman ni petitioner.
❖ Nung nafufrustrate na si petitioner kaka antay dun sa pinapagawa niya, kinukuha niya na yung
typewriter kay Gonzalez and pinadala naman iyun ni Gonzales.
❖ Then nung nareceived na yun ni Chavez, chineck niya yun ang nadiscover niya na medyo magulo yun
and may mga parts na nawawala and also yung interior cover.
❖ Then ni request ni Chavez kay Gonzales na ibalik yung mga missing parts and also yung amount na
P6.00
➢ And binalik naman yun ni Gonzales.
❖ On August 29, 1964, pinaayos ni petitioner-Chavez yung typewriter sa Freixas Business Machines and it
cost him P89.85.
❖ On August 23, 1965, nagfile ng complaint si Chavez and nagdedemand siya ng payment na P90.00
actual and compensatory damages, P100.00 for temperate damages, P500.00 for moral damages and
P500.00 for atty’s fees.
❖ "In his answer as well as in his testimony given before this court, the defendant made no denials of the
facts narrated above, except the claim of the plaintiff that the typewriter was delivered to the
defendant through a certain Julio Bocalin, which the defendant denied allegedly because the
typewriter was delivered to him personally by the plaintiff.
❖ The court ruled na bayaran ni Respondent-Gonzales si petitioner-Chavez ng P31.10 for the cost of suit.
➢ Though yung total cost nung ni repair ng Freixas Business Machines yung typewriter is P89.85
but the total value of the missing parts is only P31.10.
➢ Binalik ni Gonzales yung typewriter na sira pa rin at may kulang na parts, which it means a
breach of obligation, without demanding that he should be given more time to finish the job, or
give him a compensation para dun sa natapos niya.
❖ ISSUES: If there is an error sa ruling ng court na yung value lng ng missing parts yung babayaran ni
respondents-Gonzales and hindi yung whole repair cost as provided under Article 1167
➢ Article 1167
■ If person is obliged to do something fails to do it, the same shall be executed at his cost.
■ This same rule shall be observed if he does it in contravention of the tenor of the
obligation. Furthermore, it may be decreed that what has been poorly done be undone.
❖ Then si Gonzales inargue niya na hindi siya liable since yung contract nila is walang period.
➢ And dapat daw nag apela muna si Chavez sa court to fix the date but since dumiretso na siya sa
SC the facts, as found by the trial court, are now conclusive and non-reviewable.
❖ RULING: It is clear daw that the respondent - Gonzales is liable under article 1167 because he
returned the typewriter in shambles.
➢ That is why he is liable for the cost of repair of typewriter which is P58.75
■ because the obligation or contract was to repair it.
➢ As well as the value of the missing parts.
❖ Claims for damages and attorney's fees must be pleaded,... and the existence of the actual basis thereof
must be proved.
❖ The plaintiff - De los Reyes and others has executed two mortgage agreements in favor of the
dependent-De Leon, as a security for a loan of P60,000 in Japanese currency. (P40,000.00, Philippine
Currency)
❖ The first agreement was “real estate mortgage" on July 4,1944, and “real estate additional mortgagged”
on July 11, 1944.
➢ Both agreements were constituted on a parcel of land in Malate, Manila, covered by Transfer
Certificate of Title No. 66955
❖ "That the MORTGAGOR, desiring to obtain an additional loan of TWENTY THOUSAND PESOS
(P20,000.00) from the MORTGAGEE, has, by these presents, transferred, conveyed and assigned, in
favor of the MORTGAGEE, his assigns, heirs' and successors in interest, the above described parcel of
land, subject to the following conditions:
❖ on August 5, 1953, ininform sina De los Reyes na since di sila nakakabayad ng taxes for the years
1951 and 1952 and 1953, the entire loan had become due and demandable
➢ and also the foreclosure of the mortgaged property
❖ The plaintiff or appellees - De los Reyes filed a suit to annul foreclosure sale
➢ on the ground of misrepresentation of the actual indebtedness,
➢ absence of demand prior to foreclosure,
➢ and the prematurity of the foreclosure.
❖ The court ruled in favor of the plaintiff or appellees - De los Reyes, declaring the foreclosure sale is null
and void and awarding atty’s fees.
RATIO:
❖ The ground for such foreclosure is yung hindi pagbayad ng tax on the mortgaged property ni
plaintiff/appellees - Delos Reyes.
❖ walang demand na nangyari both sa tax or sa loan mismo
➢ yung nareceived lng ni delos reyes from the atty of de leon is yung notice na sinasabi na they
will take necessary steps to foreclose the mortgage extrajudicially because the taxes has not
been paid.
❖ Article 1169 provides that those obliged to deliver or to do something incur in delay from the
time the obligee judicially or extrajudicially demands from them the fulfillment of the boligation.
Demand is dispensed with only:
➢ a. when the obligation or the law expressly so declares, that is that the debtor shall be
considered in default without the need for such demand
➢ b. when time is of the essence of the obligation
➢ c. and when demand would be useless.
❖ In the case, when the time is of the essence of the obligation, is the only present in the stipulation.
➢ "Time is the paramount condition of this agreement, namely, that the said loan of P40,000.00
shall not be paid sooner nor later than within the first three (3) years after the Greater East
Asia War,
❖ The timely payment of taxes is not consideration for the period for the payment of the loan.
➢ Kaya hindi nawala yung right ni plaintiff/appellees - delos reyes to avail of the period despite the
delay in paying taxes.
❖ The extrajudicial foreclosure of the mortgage at the instance of appellant was for the sum of
P60,000.00 instead of only P30,000.00, which was the amount appellees were bound to pay after the
treaty of peace was signed and/or proclaimed.