EDCA PUBLISHING v. SANTOS- Possession of Movable Property

Category: Property, Ownership and Its Modifications

EDCA PUBLISHING v. SANTOS

Possession of movable property acquired in GF is equivalent to title. There is no need to produce a receipt.

FACTS:

EDCA Publishing sold 406 books to a certain Professor Jose Cruz who ordered these by telephone, which was agreed to be payable on delivery. The books were subsequently delivered to him with the corresponding invoice, and he paid with a personal check.

Cruz then sold the 120 of the books to Leonor Santos who asked for verification, and was then showed the invoice for the books.

EDCA became suspicious when Cruz ordered another set of books even before his check cleared. Upon investigation, EDCA found that he wasn’t the person he claimed to be (Dean in DLSU). EDCA had the police capture Cruz, as well as seize the books from Santos. Santos demanded the return of the books.

RTC granted the writ of preliminary attachment.

Subsequent dishonor of a check, which did not render the contract of sale void does not amount to unlawful deprivation of property. (There was a perfected contract of sale so the proper remedy is specific performance)

ISSUE:

Whether or not the owner was unlawfully deprived of the property?

HELD: No.

Santos was a good faith buyer after taking steps to verify the identity of the seller. When she was showed the invoice, she reasonably believed that he was a legitimate seller.

With regard to unlawful deprivation, EDCA was not unlawfully deprived of the property by mere failure of consideration. There was already a perfected contract of sale. Proof was even substantiated when EDCA gave the invoice as proof of payment upon delivery of the books. This did not amount to unlawful taking, because by the delivery of EDCA to Cruz, ownership of the books already transferred to him.