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Ledesma v. CA

Citiwide Motors sold two vehicles to a person using a fake name, who paid with an altered check. When the check was dishonored, Citiwide sought to recover one of the vehicles, which was now in the possession of Jaime Ledesma. The Court ruled that: 1) Citiwide was not unlawfully deprived of the vehicles, as there was a valid sale contract even if payment later failed, so Article 559 allowing recovery did not apply. 2) Ledesma proved he acquired the vehicle in good faith from another party, and Citiwide did not show Ledesma knew of any fraud, so it could not recover the vehicle from him under Article 559.

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Marianne Agunoy
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550 views2 pages

Ledesma v. CA

Citiwide Motors sold two vehicles to a person using a fake name, who paid with an altered check. When the check was dishonored, Citiwide sought to recover one of the vehicles, which was now in the possession of Jaime Ledesma. The Court ruled that: 1) Citiwide was not unlawfully deprived of the vehicles, as there was a valid sale contract even if payment later failed, so Article 559 allowing recovery did not apply. 2) Ledesma proved he acquired the vehicle in good faith from another party, and Citiwide did not show Ledesma knew of any fraud, so it could not recover the vehicle from him under Article 559.

Uploaded by

Marianne Agunoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
  • Case Introduction: Presents the legal context and initial facts of the Ledesma v. CA case.
  • Case Details: Details the procedural history and the main events leading up to the legal dispute.
  • Decision Analysis: Analyzes the court's decision regarding whether Citwide can recover the car from Ledesma.

23. Ledesma v.

CA
G.R. No. 86051
September 1, 1992.
"ARTICLE 559. The possession of movable property acquired in good faith is equivalent to a title.
Nevertheless, one who has lost any movable or has been unlawfully deprived thereof, may recover it from
the person in possession of the same.
If the possessor of a movable lost or of which the owner has been unlawfully deprived, has acquired it in
good faith at a public sale, the owner cannot obtain its return without reimbursing the price paid
therefor."
Facts:
On September 27, 1977, a person representing himself to be Jojo Consunji, purchased purportedly for his
father, Rustico T. Consunji, two brand new motor vehicles (a 1977 Isuzu Gemini and a 1977 Holder
Premier) from Citiwide Motors, Inc. As payment, Jojo gave Citiwide a Manager's Check of the Philippine
Commercial and Industrial Bank dated September 28, 1977 for the amount of P101,000.00. However,
upon deposit of the said check, it was dishonored by the bank on the ground that it was tampered with, the
correct amount of P101.00 having been raised to P101,000.00.
Citiwide reported what happened to the police and upon investigation it was learned that the real identity
of the wrongdoer/impostor (Jojo Consunji) is Armando Suarez who has a long line of criminal cases
against him for estafa using this similar modus operandi. Eventually, the Holder premier was found
abandoned in QC but the Isuzu Gemini was found in the possession of a third party, Jaime Ledesma. In
his defense, Jaime Ledesma claims that he purchased the subject vehicle in good faith from its registered
owner, one Pedro Neyra.
Citiwide then filed a case to recover the vehicle from Ledesma. The Trial court ruled in favor of Ledesma,
while the CA ruled in favor of Citiwide, under the pretext of article 559. The respondent court applied 559
on the ground that the car was unlawfully obtained by Suarez since there was no sale at all because of the
alterations on the check.
Issue:
1) W/NCitiwidewasunlawfullydeprivedofthesubjectvehicles.
2) W/Narticle559shallapply,allowingCitiwidetorecoverthecarfromthethepresentpossessor,
Ledesma.
Held:
1)NO,Citiwidewasnotunlawfullydeprivedofthevehiclesandthus,article559willNOTapply.
Therewasaperfectedunconditionalcontractofsalebetweenprivaterespondentandtheoriginalvendee.
Theformervoluntarilycausedthetransferofthecertificateofregistrationofthevehicleinthenameof
thefirstvendeeevenifthesaidvendeewasrepresentedbysomeonewhousedafictitiousnameand
likewise voluntarily delivered the cars and the certificate of registration to the vendee's alleged
representative.Titletheretowasforthwithtransferredtothevendee. Thesubsequentdishonor ofthe
checkbecauseofthealterationmerelyamountedtoafailureofconsiderationwhichdoesnotrenderthe
contractofsalevoid,butmerelyallowstheprejudicedpartytosueforspecificperformanceorrescission
ofthecontract,andtoprosecutetheimpostorforestafaundertheRPC.

2)NO,article559willnotapplyandCitiwidecannotrecoverthecarfromLedesma.
Thepetitionersuccessfullyprovedthatheacquiredthecarinquestionfromhisvendoringood
faithandforvaluableconsideration.Citiwidesevidencewasnotpersuasiveenoughtoestablishthat
petitionerhadknowledgethatthecarwastheobjectofafraudandaswindleandthatitdidnotrebutor
contradictpetitioner'sevidenceofacquisitionforvaluableconsideration.
Underarticle559,apartywho(a)haslostanymovableor(b)hasbeenunlawfullydeprived
thereofcanrecoverthesamefromthepresentpossessorevenifthelatteracquireditingoodfaith.Inthis
case,Citiwidewasnotunlawfullydeprivedofthevehicleandthus,article559findsnoapplicationatall.

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