DEPOSIT depositor.

a. when two or more persons claiming to be entitled to a

A deposit is constituted from the moment a person thing may deposit the same with a third person. In such
receives a thing belonging to another, with the obligation case, the third person assumes the obligation to deliver to
of safely keeping it and of returning the same. the one to whom it belongs.
If the safekeeping of the thing delivered is not the b. Interpleader � the action to compel the depositors to
principal purpose of the contract, there is no deposit but settle their conflicting claims. Here one of the depositors is
some other contract. not the owner.
NOTE: it is essential that the depository is not the owner
of the thing deposited VOLUNTARY DEPOSIT
CHARACTERISTICS
GENERAL PROVISIONS
1. real - because it is perfected only by the delivery of the
Art. 1968. A voluntary deposit is that wherein the
subject matter BUT an agreement to constitute a deposit
delivery is made by the will of the depositor. A deposit
is binding and enforceable, since it is merely consensual
may also be made by two or more persons each of
2. unilateral - if gratuitous
whom believes himself entitled to the thing deposited
3. bilateral - if with compensation
with a third person, who shall deliver it in a proper case
to the one to whom it belongs. (1763)
CREATION OF DEPOSIT (Art. 1964)
1. By virtue of a court order; or
VOLUNTARY DEPOSIT
2. By law
3. Not by the will of the parties  One wherein the delivery is made by the will of
4. It is essential that the depositary is not the owner of the the depositor
property deposited (Art. 1962)
 Generally, the depositor must be the owner of
KINDS OF DEPOSIT the thing deposited
1. judicial - when an attachment or seizure of property in  But it may belong to another person
litigation is ordered  The depositary cannot dispute the title of the
2. extrajudicial (Art. 1967) depositor to the thing deposited
a. voluntary- delivery is made by the will of the depositor
or by two or more persons WHERE THERE ARE SEVERAL DEPOSITORS
each of whom believes himself entitled to the thing  Two or more persons each claiming to be entitled
deposited; to the thing deposited, may deposit the same with a third
b. necessary- made in compliance with a legal obligation, person
or on the occasion of any calamity, or by travelers in hotels
and inns or by travelers with common carriers Art. 1969. A contract of deposit may be entered into orally
or in writing. (n)
DEPOSIT IS GENERALLY GRATUITOUS: (Art. 1965)
Art. 1970. If a person having capacity to contract accepts
GR: A deposit is generally gratuitous. a deposit made by one who is incapacitated, the former
Exceptions: shall be subject to all the obligations of a depositary, and
a. when there is a contrary stipulation may be compelled to return the thing by the
b. where depositary is engaged in the business of storing guardian, or administrator, of the person who made
goods the deposit, or by the latter himself if he should acquire
c. where property is saved without knowledge of the capacity. (1764)
owner
WHERE DEPOSITARY CAPACITATED AND THE
SUBJECT MATTER OF DEPOSIT (Art. 1966) DEPOSITOR INCAPACITATED
GR: only movable or personal property may be the object  If the depositary is capacitated, he is subject to
of deposit, whether voluntary or necessary. Exception: In all the obligations of a depositary, whether or not the
judicial deposit, it may cover both depositor is capacitated
movable and immovable property.  In the latter case, the depositary must return the
property to the legal representative of the
DEPOSITOR NEED NOT BE THE OWNER OF THE THING: incapacitated or the depositor himself if he should
GR: The depositor must be the owner of the thing acquire capacity
deposited.
WHAT IF THE CAPACITATED DEPOSITOR CANNOT
Exceptions: It may belong to another person than the RETURN IT TO THE LEGAL REPRESENTATIVE?
He can be held liable for estafa. 2. Rules applicable
a. Art. 1163. Every person obliged to give something is
WHAT CAN HE OPT TO DO?
also obliged to take care of it with the proper
Consignation is not advisable. It is too costly.
diligence of a good father of a family, unless the law
or the stipulation of the parties requires another
Art. 1971. If the deposit has been made by a
standard of care. (1094a)
capacitated person with another who is not, the
b. Art. 1170. Those who in the performance of their
depositor shall only have an action to recover the thing
obligations are guilty of fraud, negligence, or delay,
deposited while it is still in the possession of the
and those who in any manner contravene the tenor
depositary, or to compel the latter to pay him the
thereof, are liable for damages. (1101)
amount by which he may have enriched or benefited
c. Art. 1265. Whenever the thing is lost in the
himself with the thing or its price. However, if a third
possession of the debtor, it shall be presumed that
person who acquired the thing acted in bad faith, the
the loss was due to his fault, unless there is proof to the
depositor may bring an action against him for its
contrary, and without prejudice to the
recovery. (1765a)
provisions of article 1165. This presumption does not
apply in case of earthquake, flood, storm, or
WHERE DEPOSITARY INCAPACITATED AND THE DEPOSITOR
other natural calamity. (1183a)
CAPACITATED
d. The required degree of care is greater if the
 The incapacitated depositary doesn’t incur the
deposit is made for compensation than when it is
obligation of the depositary
gratuitous.
 However, he is liable to return
o To return the thing deposited while still in his 3. Return before specified term—the thing deposited
possession must be returned to the depositor whenever he claims
o To the pay the depositor the amount by which he it, even though a specified term or time for such may
may have benefited himself with the thing or its price have been stipulated in the contract.
subject to the right of a third person who acquired the
thing in good faith CAN THERE BE A STIPULATION FOR A LESSER
DEGREE OF CARE? Yes.
WHAT IS THE BENEFIT CONTEMPLATED BY LAW?
CAN THERE BE STIPULATION THAT THERE WOULD ONLY
Reasonable and judicious use BE LIABILITY WITH REGARD GROSS NEGLIGENCE AND
NOT ORDINARY NEGLIGENCE? Yes.
OBLIGATIONS OF THE DEPOSITARY
Art. 1973. Unless there is a stipulation to the contrary,
the depositary cannot deposit the thing with a third
Art. 1972. The depositary is obliged to keep the thing person. If deposit with a third person is allowed, the
safely and to return it, when required, to the depositor, depositary is liable for the loss if he deposited the
or to his heirs and successors, or to the person who may thing with a person who is manifestly careless or
have been designated in the contract. His responsibility, unfit. The depositary is responsible for the negligence
with regard to the safekeeping and the loss of the thing, of his employees. (n)
shall be governed by the provisions of Title I of this Book.
OBLIGATION NOT TO TRANSFER DEPOSIT
If the deposit is gratuitous, this fact shall be taken
into account in determining the degree of care 1. Liability for loss
that the depositary must observe. (1766a) a. If he deposits it with a third person without
authority even if there has been no negligence
from his part and on the third person
OBLIGATION TO KEEP THE THING DEPOSITED AND RETURN b. If deposit with a third person is allowed, he is
IT liable still if he deposited the thing with a person who
1. Degree of care—ordinarily, the depositor must is manifestly careless or unfit
exercise over the thing deposited the same diligence 2. Exemption from liability
as he would exercise over his property a. The depositor is not responsible in case the thing is
a. Because it is an essential requisite of the judicial lost without negligence of the third person with whom
relation which involves the depositor’s confidence in he was allowed to deposit the thing if such person is not
good faith and trustworthiness manifestly careless or unfit
b. Presumption that the depositor in choosing the
depositary took into account the diligence which the Art. 1974. The depositary may change the way of the
depositary is accustomed with respect to his own deposit if under the circumstances he may
property reasonably presume that the depositor would consent to
the change if he knew of the facts of the situation. deposited requires its use, it must be used but only for
However, before the depositary may make such that purpose. (1767a)
change, he shall notify the depositor thereof and
wait for his decision, unless delay would cause danger. GENERALLY THE DEPOSITARY CANNOT MAKE USE OF
(n) THE THING DEPOSITED WITHOUT THE EXPRESS
PERMISSION OF THE DEPOSITOR. WHAT ARE THE
Art. 1975. The depositary holding certificates, EXCEPTIONS?
bonds, securities or instruments which earn interest shall
1. When the depositor has given his express
be bound to collect the latter when it becomes due, and
permission to the depositary to use the thing deposited
to take such steps as may be necessary in order that the
2. When the preservation of the thing deposited
securities may preserve their value and the rights
requires its use, it must be used but only for that purpose
corresponding to them according to law.

The above provision shall not apply to contracts for the WHAT IS THE REASON FOR THIS RULE?
rent of safety deposit boxes. (n)
 The principal purpose of deposit is safekeeping, not
IF THE THING DEPOSITED SHOULD EARN INTEREST, use of the thing. If the purpose is use, it is not deposit
THE DEPOSITARY IS UNDER THE OBLIGATION anymore.
 If the depositary uses the thing deposited
1. To collect the interest as it becomes due without permission of the depositor, he shall be liable for
2. To take steps as may be necessary to preserve its damages. In addition, if the thing is lost even through
value and the rights corresponding to it fortuitous event, the depositary shall bear the loss.
SAFETY DEPOSIT BOXES
Art. 1978. When the depositary has permission to use
 The contract for rent of safety deposit boxes is the thing deposited, the contract loses the concept of a
not an ordinary contract of lease of things because deposit and becomes a loan or commodatum,
the full and absolute possession and control of the except where safekeeping is still the principal purpose of
safety deposit box is not given to the party renting. the contract.
 It is actually a special kind of deposit. It is a
contractual relation between the parties. The liability The permission shall not be presumed, and its
rules are governed by the Civil Code provisions on existence must be proved. (1768a)
obligations and contracts, and not on donations.
WHAT HAPPENS IF THE DEPOSITARY IS GIVEN PERMISSION
IS A STIPULATION WHICH EXEMPTS THE BANK FROM TO USE?
LIABILITY FOR THE THINGS CONTAINED IN THE SAFETY
1. If the purpose of the contract is still for safekeeping,
DEPOSIT BOX VALID?
then it retains its concept as a deposit
 The stipulation is void. Even if as a rule, the
Bank may limit its liability to some extent by 2. If the purpose has become for the use or
agreement or stipulation, the agreement or stipulation consumption of the thing
must not be contrary to law and public policy. a. Commodatum—if the purpose is for a non-
 The law on deposit provides that the depositary is consumable thing
liable for loss due to fraud, negligence, delay, or b. Mutuum—if the purpose is for a consumable thing or
contravention of the tenor of the agreement. Any money
contrary stipulation would be void.
Art. 1979. The depositary is liable for the loss of the
Art. 1976. Unless there is a stipulation to the contrary, thing through a fortuitous event:
the depositary may commingle grain or other articles
of the same kind and quality, in which case the various (1) If it is so stipulated;
depositors shall own or have a proportionate interest in
the mass. (n) (2) If he uses the thing without the
depositor's permission;
Art. 1977. The depositary cannot make use of the
thing deposited without the express permission of the (3) If he delays its return;
depositor.
(4) If he allows others to use it, even though he
Otherwise, he shall be liable for damages. himself may have been authorized to use the same.(n)

However, when the preservation of the thing

WHEN IS THE DEPOSITARY LIABLE FOR THE LOSS OF therefore, he is not liable to pay interest
THE THING THROUGH A FORTUITOUS EVENT?  If the depositary be in delay or has used the
1. If it is so stipulated; money without permission, he shall be liable for
2. If he uses the thing without the depositor's interest as indemnity
permission;  The depositary owes interest on the sums he has
3. If he delays its return; applied to his own use from the day on which he did so,
4. If he allows others to use it, even though he himself and those which he still owes after the extinguishment of
may have been authorized to use the same. (n) the deposit

Art. 1980. Fixed, savings, and current deposits of money Art. 1984. The depositary cannot demand that the
in banks and similar institutions shall be governed by depositor prove his ownership of the thing deposited.
the provisions concerning simple loan. (n)
Nevertheless, should he discover that the thing has
Art. 1981. When the thing deposited is delivered closed been stolen and who its true owner is, he must advise
and sealed, the depositary must return it in the same the latter of the deposit.
condition, and he shall be liable for damages should the If the owner, in spite of such information, does not claim
seal or lock be broken through his fault. it within the period of one month, the depositary
shall be relieved of all responsibility by returning
Fault on the part of the depositary is presumed, the thing deposited to the depositor.
unless there is proof to the contrary.
If the depositary has reasonable grounds to believe that
As regards the value of the thing deposited, the the thing has not been lawfully acquired by the
statement of the depositor shall be accepted, when depositor, the former may return the same. (1771a)
the forcible opening is imputable to the depositary,
should there be no proof to the contrary. However, DEPOSITOR NEED NOT PROVE OWNERSHIP
the courts may pass upon the credibility of the
depositor with respect to the value claimed by him.  The depositary who receives the thing in deposit
When the seal or lock is broken, with or without the cannot require that the depositor prove his ownership
depositary's fault, he shall keep the secret of the over the thing
deposit. (1769a)
WHERE THIRD PERSON APPEARS TO BE THE OWNER
Art. 1982. When it becomes necessary to open a locked
box or receptacle, the depositary is presumed authorized  Should he discover that the thing has been stolen and
to do so, if the key has been delivered to him; or who its true owner is, he must advise the latter of the
when the instructions of the depositor as regards the deposit
deposit cannot be executed without opening the box or  If the owner, in spite of such information, does not
receptacle. (n) claim it within the period of one month, the
depositary shall be relieved of all responsibility by
Art. 1983. The thing deposited shall be returned with all returning the thing deposited to the depositor
its products, accessories and accessions.  If the depositary has reasonable grounds to
believe that the thing has not been lawfully acquired by
Should the deposit consist of money, the provisions the depositor, the former may return the same.
relative to agents in article 1896 shall be applied to the
depositary. (1770)
CAN THE DEPOSITARY REQUIRE THE PRESENTATION OF AN
ID?
OBLIGATION TO RETURN PRODUCTS, ACCESSORIES,
AND ACCESSIONS Yes. Proof of identification is different from proof of
ownership.
 The depositor is the owner of or at least
represents the owner of the things deposited
 The depositary must therefore return not only the CAN THE DEPOSITARY REQUIRE THE PRESENTATION OF
thing itself but also all its products, accessions and THE RECEIPT?
accessories which are a consequence of ownership
Yes. It is only a proof of identification and not
ownership.
OBLIGATION TO PAY INTEREST ON SUMS CONVERTED
TO PERSONAL USE
IN DEPOSIT, WHAT SHOULD BE ASCERTAINED AT THE VERY
 If what has been deposited is money, the
LEAST?
depositary has no right to make use thereof and
Authority to make deposit should be ascertained. Take
note that before the deposit, proof of ownership may be Art. 1987. If at the time the deposit was made a place
required. The prohibition applies subsequent to the was designated for the return of the thing, the depositary
deposit. There is required due diligence review. must take the thing deposited to such place; but the
expenses for transportation shall be borne by the
Art. 1985. When there are two or more depositors, if depositor.
they are not solidary, and the thing admits of division,
each one cannot demand more than his share. If no place has been designated for the return, it
shall be made where the thing deposited may be,
When there is solidarity or the thing does not admit even if it should not be the same place where the
of division, the provisions of Articles 1212 and 1214 deposit was made, provided that there was no
shall govern. However, if there is a stipulation that malice on the part of the depositary. (1774)
the thing
should be returned to one of the depositors, the PLACE OF RETURN
depositary shall return it only to the person designated.  The thing must be returned at the place agreed
(1772a) upon by the parties, and in the absence of stipulation, at
the place where the thing deposited might even if it
RIGHT OF TWO OR MORE DEPOSITORS shouldn’t be the same place where the original deposit
was made provided the transfer was accomplished
1. Thing deposited divisible and depositors not solidary—
without malice on the part of the depositary
if the thing deposited is divisible and there are two or
 In the first place, the expenses for transportation shall
more depositors who are not solidary, each one can
be borne by the depositor. This is just because the deposit
demand only his proportionate share thereto
is constituted for the benefit of the depositor and not
2. Obligation solidary or thing deposited not
the depositary who assumes no more than the
divisible—if the obligation is solidary or the thing is not
safekeeping and the return of the thing
divisible, the rules on active solidarity shall apply, to the
effect that each one of the solidary depositors may do
Art. 1988. The thing deposited must be returned to
whatever may be useful to the others but not anything
the depositor upon demand, even though a specified
which may be prejudicial to the latter, and the depositary
period or time for such return may have been fixed.
may return the thing to any one of the solidary
depositors unless a demand for its return has been
This provision shall not apply when the thing is
made by one of them in which case delivery should be
judicially attached while in the depositary's possession,
made to him
or should he have been notified of the opposition of a
3. Return to one of depositors stipulated—if by third person to the return or the removal of the thing
stipulation the thing should be returned to one of the deposited. In these cases, the depositary must
depositors, the depositary is bound to return it only immediately inform the depositor of the attachment or
to the person designated although he has not made any opposition. (1775)
demand for its return.
TIME OF RETURN
Art. 1986. If the depositor should lose his capacity to
 As a rule, the depositor can demand the return of the
contract after having made the deposit, the thing cannot
thing deposited at will and this is true whether the
be returned except to the persons who may
period has been stipulated or not
have the administration of his property and rights.
(1773)  If the deposit is for compensation, the depositary
is entitled to the compensation for the whole period. In
PERSON TO WHOM RETURN MUST BE MADE this case, the period is for both the depositor and
1. The depositary is obliged to return the thing depositary.
deposited when required, to the depositor, to his
heirs and successors, or to the person who may WHEN DEPOSITARY IS NOT OBLIGED TO RETURN
have been designated in the contract THING DEPOSITED
2. If the person was incapacitated at the time of making 1. When the thing has been judicially attached while
the deposit, the property must be returned to his guardian in the depositary’s possession—he would be
or administrator or the person who made the deposit disobeying the judicial order of attachment
or to the depositor himself should he acquire capacity 2. When he has been notified of the opposition of a
3. Even if the depositor had capacity at the time of third person to the return or removal of the thing
making the deposit but he subsequently loses his deposited
capacity during the deposit, the thing must be
returned to his legal representative Art. 1989. Unless the deposit is for a
valuable consideration, the depositary who may have The sale or appropriation of the thing constitutes estafa.
justifiable reasons for not keeping the thing
deposited may, even before the time designated, return
OBLIGATIONS OF THE DEPOSITOR
it to the depositor; and if the latter should refuse to
receive it, the depositary may secure its consignation
Art. 1992. If the deposit is gratuitous, the depositor
from the court. (1776a)
is obliged to reimburse the depositary for the
expenses he may have incurred for the
RIGHT OF DEPOSITARY TO RETURN THING DEPOSITED
preservation of the thing deposited. (1779a)
1. Deposit gratuitous—the depositary may likewise return
the thing deposited notwithstanding that a period has OBLIGATION TO PAY EXPENSES OF PRESERVATION
been fixed for the thing if 1. Deposit gratuitous—the above article applies only
a. The deposit is gratuitous if the deposit is gratuitous. It rests on equity. The
b. Justifiable reasons depositor would have incurred just the same had the thing
remained with him. Without the duty of reimbursement
2. Deposit for a valuable consideration—if the deposit is
imposed by the article, the depositor would be enriching
for a valuable consideration, the depositary has no
himself at the expense of the depositary. The rule is
right to return the thing deposited before the expiration
different in commodatum.
of the time designated even if he should suffer
2. Deposit for compensation—if the deposit is for
inconvenience as a consequence
valuable consideration, the expenses of preservation
are borne by the depositary because they are deemed
Art. 1990. If the depositary by force majeure or
included in the compensation. There can however be
government order loses the thing and receives money or
a contrary stipulation.
another thing in its place, he shall deliver the sum or
other thing to the depositor. (1777a)
Art. 1993. The depositor shall reimburse the depositary
for any loss arising from the character of the thing
LIABILITY FOR LOSS BY FORCE MAJEURE OR GOVERNMENT
deposited, unless at the time of the constitution of
ORDER
the deposit the former was not aware of, or was not
 The depositary has the obligation to return the
expected to know the dangerous character of the thing,
thing deposited or unless he notified the depositary of the same, or
 But he isn’t liable for loss of the thing by force the latter was aware of it without advice from the
majeure or by government order depositor. (n)
 However, if in place of the thing he receives
money or another thing, he has the duty to deliver to the Art. 1994. The depositary may retain the thing in
depositor what he has acquired otherwise, he would pledge until the full payment of what may be due him by
enrich himself at the expense of the depositor reason of the deposit. (1780)

Art. 1991. The depositor's heir who in good faith may DEPOSITARY’S RIGHT OF RETENTION
have sold the thing which he did not know was  Talks about legal pledge
deposited, shall only be bound to return the price he may
 The thing retained serves as security for payment of
have received or to assign his right of action against
what may be due to the depositary by reason of the
the buyer in case the price has not been paid him. deposit
(1778)
 Depositary may foreclose through public auction
ALIENATION IN GOOD FAITH BY DEPOSITARY’S HEIR
Art. 1995. A deposit its extinguished:
 This above article envisions a situation where
the depositary dies and the object of the deposit is left (1) Upon the loss or destruction of the thing
with his heir who, in good faith, sells it deposited;
 The obligation of the heir is limited to the return
of the price received or to assign the right to collect the (2) In case of a gratuitous deposit, upon the
same if it hasn’t been paid and not the real value of the death of either the depositor or the depositary. (n)
thing
 The rule is based on considerations of equity CAUSES OF EXTINGUISHMENT OF DEPOSIT
 If the purchaser who acquired the thing acted in bad  The causes mentioned are not exclusive
faith, the depositor may bring an action against him  There could also be other causes such as return
for its recovery of the thing, Novation, merger, expiration of term,
 If the heir acts in bad faith, he is liable for damages. fulfillment of resolutory condition
EFFECT OF DEATH OF DEPOSITOR OR DEPOSITARY deposit isn’t personal in nature. Hence, the rights
and obligations arising therefrom are transmissible to
1. Deposit gratuitous—if the deposit is gratuitous, the
their respective heirs. But the heirs of either party
death of either the depositor or depositary
have a right to terminate the deposit even before the
extinguishes the deposit.
expiration of the
2. Deposit for compensation—a deposit for a
term.
compensation isn’t extinguished by the death of either
party because unlike a gratuitous deposit, an onerous ------------------------------------------------------------------------------
---------------------------------------------------------------- Art. 1998. The deposit of effects made by the
travelers in hotels or inns shall also be regarded as
necessary. The keepers of hotels or inns shall be
NECESSARY DEPOSIT responsible for them as depositaries, provided that
notice was given to them, or to their employees, of the
Art. 1996. A deposit is necessary: effects brought by the guests and that, on the part
of the latter, they take the precautions which said
(1) When it is made in compliance with a hotel-keepers or their substitutes advised relative to
legal obligation; the care and vigilance of their effects. (1783)

(2) When it takes place on the occasion of any Art. 1999. The hotel-keeper is liable for the vehicles,
calamity, such as fire, storm, flood, pillage, animals and articles which have been introduced or
shipwreck, or other similar events. (1781a) placed in the annexes of the hotel. (n)

Art. 1997. The deposit referred to in No. 1 of the DEPOSIT BY TRAVELLERS IN HOTELS AND INNS
preceding article shall be governed by the provisions
of the law establishing it, and in case of its deficiency, by 1. They have been previously informed about the
the rules on voluntary deposit. effects brought by their guests
2. The latter have taken the precautions prescribed
The deposit mentioned in No. 2 of the preceding article regarding their safekeeping
shall be regulated by the provisions concerning voluntary
deposit and by Article 2168. (1782)
EXTENT OF LIABILITY OF KEEPERS OF HOTELS AND INNS
WHEN DEPOSIT IS NECESSARY  The liability isn’t limited to effects lost or damaged in
the hotel rooms which come under the term
1. When it is made in compliance with a legal
“baggage” or articles such as clothing as are ordinarily
obligation
used by travelers but include those lost or damaged in
2. When it takes place on the occasion of any
hotel annexes such as vehicles in the hotel’s garage
calamity, such as fire, storm, flood, pillage,
 The responsibility extends to all those who offer
shipwreck, or other similar events
lodging for a compensation, whatever may be their
3. Travelers in hotels or inns
character
4. Made by passengers with common carriers
NECESSARY DEPOSIT IN COMPLIANCE WITH A LEGAL
DEFINITION OF TERMS
OBLIGATION
1. Travelers or guests—it refers to transients and not
1. The judicial deposit of a thing the possession of to boarders. Non-transients are governed by the rules
which is being disputed in a litigation by two or more on lease.
persons 2. Hotel-keeper and inn-keeper—
2. The deposit with a bank or public institution of a. Hotel—a house or large building that supplies
public bonds or instruments of credit payable to order or rooms and food for pay to travelers and others;
bearer given in usufruct when the usufructuary inn.
doesn’t give proper security for their conservation b. Inn—a place where travelers and others can get
3. The deposit of a thing pledged when the creditor uses meals and a room to sleep in. Hotels have largely
the same without the authority of the owner or taken the place of the old inns.
misuses it in any other way c. Motel—a roadside hotel or group of furnished
4. Those required in suits as provided for in the cottages or cabins providing overnight lodging for
Rules of Court motorists; motor court.
5. Those constituted to guarantee contracts with
the government. In this last case, the deposit arises from Art. 2000. The responsibility referred to in the
an obligation of a public or administrative character. two preceding articles shall include the loss of, or injury
to the personal property of the guests caused by the
servants or 1998 to 2001 is suppressed or diminished shall be void.
employees of the keepers of hotels or inns as well (n)
as strangers; but not that which may proceed from
any force majeure. The fact that travelers are
constrained to rely on EXEMPTION OR DIMUNITION OF LIABILITY
the vigilance of the keeper of the hotels or inns
shall be considered in determining the degree of care  The rule in this article is similar to the rule on
common carriers which doesn’t allow a common carrier to
required of him. (1784a)
dispense with or limit his responsibility by stipulation or
by posting of notices
Art. 2001. The act of a thief or robber, who has entered
the hotel is not deemed force majeure, unless it is  Such stipulations is deemed contrary to law,
done with the use of arms or through an irresistible morals, and public policy
force. (n) 1. Hotel-keepers and inn-keepers in offering
their accommodations to the public, practically
Art. 2002. The hotel-keeper is not liable for volunteer as depositaries, and as such, they should be
compensation if the loss is due to the acts of the guest, subject to an extraordinary degree of responsibility for
his family, servants or visitors, or if the loss arises the protection and safety of travelers who have no
from the character of the alternative but rely on good faith and care of those with
things brought into the hotel. (n) whom they take lodging
2. Inn-keepers by the nature of their business,
WHEN HOTEL-KEEPER LIABLE have supervision and control of their inns and the
1. The loss or injury is caused by his servants or premises thereof. As a matter of fact, authorities are to
employees as well as by strangers provided that the effect that it is not necessary in order to hold an
notice has been given and proper precautions taken inn-keeper liable that the effects of the guests be actually
2. The loss is caused by the act of the thief or delivered to him or his employee, it is enough that they
robber done without the use of arms and irresistible are within the inn.
force for in this case, the hotel-keeper is apparently
negligent. CAN THERE BE STIPULATION EXEMPTING LIABILITY FOR
GROSS NEGLIGENCE?
WHEN HOTEL-KEEPER IS NOT LIABLE No since you cannot waive liability for gross
1. The loss or injury is caused by force majeure, negligence as this would be tantamount to waiving
theft or robbery by a stranger with the use of arms or liability for fraud.
irresistible force, unless he is guilty of fault or negligence
in failing to provide against the loss or injury from his Art. 2004. The hotel-keeper has a right to retain the things
cause brought into the hotel by the guest, as a security for
2. The loss is due to the acts of the guests, his credits on account of lodging, and supplies usually
family, servants, or visitors furnished to hotel guests. (n)

3. The loss arises from the character of the things

brought into the hotel HOTEL-KEEPER’S RIGHT TO RETAIN
 Nature of a pledge created by operation of law
Art. 2003. The hotel-keeper cannot free himself  Incidentally, the act of obtaining food or
from responsibility by posting notices to the effect that accommodation in a hotel or inn without paying thereof
he is not liable for the articles brought by the guest. Any constitutes estafa.
stipulation
between the hotel-keeper and the guest whereby
the responsibility of the former as set forth in articles

Art. 2007. The depositary of property or

SEQUESTRATION OR JUDICIAL DEPOSIT objects sequestrated cannot be relieved of his
responsibility until the controversy which gave rise
Art. 2005. A judicial deposit or sequestration takes thereto has come to an end, unless the court so orders.
place when an attachment or seizure of property in (1787a)
litigation is ordered. (1785)
Art. 2008. The depositary of property sequestrated is
Art. 2006. Movable as well as immovable property may bound to comply, with respect to the same, with all the
be the object of sequestration. (1786)
obligations of a good father of a family. (1788)  The depositary of sequestered property is the
person appointed by the court
WHEN JUDICIAL DEPOSIT TAKES PLACE  He has the obligation to take care of the
property with diligence of a good father of a family and
 A deposit may be constituted judicially or
he may not be relieved of his responsibility until the
extrajudicially
litigation is ended or the court so orders
 Takes place when an attachment or seizure of
property in litigation is ordered by the court Art. 2009. As to matters not provided for in this
Code, judicial sequestration shall be governed by the
Rules of Court. (1789)
NATURE AND PURPOSE OF JUDICIAL DEPOSIT
 Judicial deposit is auxiliary to a case pending in court APPLICABLE LAW
 Purpose is to maintain the status quo during the  The law on judicial deposit is remedial and the
pendency of the litigation or to insure the rights of the
Rules of Court is thus applicable
parties to the property in case of a favorable judgment
 Rule 57 on preliminary attachment, Rule 59 on
receivership, and Rule 60 on replevin
OBLIGATION OF DEPOSITARY OF SEQUESTRATED
PROPERTY