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Rubiso V Rivera

The plaintiffs Rubiso and Gelito claimed ownership of the pilot boat Valentina, which was taken possession of by defendant Rivera without their consent. Rivera claimed to have purchased Valentina from its previous owner Sy Qui. However, Rubiso had purchased Valentina at a public auction after a creditor of Sy Qui enforced a debt. The court ruled in favor of Rubiso, finding that although Rivera purchased Valentina first, Rubiso registered the purchase at the commercial registry earlier, as required by law to protect against third party claims. Registration at the commercial registry is necessary to establish ownership as it provides notice to third parties.

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67 views1 page

Rubiso V Rivera

The plaintiffs Rubiso and Gelito claimed ownership of the pilot boat Valentina, which was taken possession of by defendant Rivera without their consent. Rivera claimed to have purchased Valentina from its previous owner Sy Qui. However, Rubiso had purchased Valentina at a public auction after a creditor of Sy Qui enforced a debt. The court ruled in favor of Rubiso, finding that although Rivera purchased Valentina first, Rubiso registered the purchase at the commercial registry earlier, as required by law to protect against third party claims. Registration at the commercial registry is necessary to establish ownership as it provides notice to third parties.

Uploaded by

Joshua Lanzon
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FAUSTO RUBISO and BONIFACIO GELITO vs. FLORENTINO E.

RIVERA
G.R. No. L-11407 | October 30, 1917 | J. Torres

FACTS:
 Plaintiffs alleged that they were the owners of the pilot boat named Valentina, which had been in bad condition and was
stranded in Tingloy, Batangas; that Rivera took charge or possession of said vessel without the knowledge or consent of the
plaintiff and refused to deliver it to them, under claim that he was the owner thereof.
 On the other hand, defendant Rivera averred that the boat was owned by Gelito & Co. with Gelito for the 2/3 share and Sy
Qui for the 1/3 share. Gelito had sold is 2/3 share to Sy Qui. When Sy Qui acquired full ownership of the company, he sold
Valentina to Rivera for P2,500 on January 4, 1915. The sale was registered in the Bureau of Customs over two months later
on March 17, 1915.
 Shortly after the sale to Rivera, a suit was brought against Sy Qui to enforce payment of a certain sum of money. Valentina
was placed at a public auction and was purchased by Sy Qui’s creditor, Rubiso. He bought the vessel for P55.45. The sale
was registered in the Office of the Collector of Customs on January 27, 1915 and in the commercial registry on March 14,
1925.
 To summarize: the pilot boat Valentina was twice sold: first privately by its owner Sy Qui to the defendant Florentino E.
Rivera, on January 4, 1915, and afterwards by the sheriff at public auction in conformity with the order contained in the
judgment rendered by the justice of the peace, court, on January 23 of the same year, against the Chinaman Sy Qui and in
behalf of the plaintiff, Fausto Rubiso.

ISSUE:
Who is the rightful owner of the merchant vessel – Rubiso or Rivera?

HELD:
RUBISO has a better right.

Under the Code of Commerce, Art 573 provides:


Merchant vessels constitute property that may be acquired and transferred by any of the means recognized by law. The acquisition
of a vessel must be included in a written instrument, which shall not produce any effect with regard to third persons if not recorded in
the commercial registry.

The requisite of registration in the registry of the purchase of a vessel is necessary and indispensable in order that the purchaser’s
rights may be maintained against a claim filed by third person. It is undeniable that Rivera’s right cannot prevail over those
acquired by Rubiso in the ownership of the pilot boat, thought the latter’s acquisition of the vessel at public auction was subsequent
to its purchase by the defendant, Rivera.

It is true that the sale to Rivera had taken place prior to the public auction where Rubiso bought the vessel, but the same was
entered in the customs registry only on March 17, 1915. Rubiso, however, had acted more swiftly by registering the property much
earlier in the Office of the Collector Customs and in the commercial registry in the same month. Although the sale to Rivera had
taken place first, the registration made by Rubiso was made earlier.

Rubiso did the smart thing by registering the property at the commercial registry. Pursuant to Article 573 of the Code of Commerce,
the acquisition of a vessel must be registered at the commercial registry in order to bind third parties. Such registration is necessary
and indispensable in order that the purchaser’s rights may be maintained against a claim filed by third persons.

With respect to the rights of two purchasers, whichever of them first registered his acquisition of the vessel is the one entitled to
enjoy the protection of the law. By first registration, he becomes the absolute owner of the boat and is freed from all
encumbrances and claims by strangers.

DISPOSITION:
Judgment is affirmed with costs against the appellant.

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