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The Supreme Court ruled in favor of PNB in the case. Noah's Ark Sugar Refinery issued warehouse receipts for sugar deposits made by three companies. Those receipts were later negotiated and used to secure a loan from PNB. When the loan was defaulted on, PNB demanded the sugar but Noah's Ark refused. The Supreme Court ordered Noah's Ark to either deliver the sugar covered by the receipts to PNB, or pay PNB damages of 39.1 million pesos plus legal interest and 150,000 pesos in fees and costs. However, Noah's Ark could deliver the sugar only upon PNB paying any storage fees owed.

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Sarah Elizabeth Lunas
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46 views

Pledge

The Supreme Court ruled in favor of PNB in the case. Noah's Ark Sugar Refinery issued warehouse receipts for sugar deposits made by three companies. Those receipts were later negotiated and used to secure a loan from PNB. When the loan was defaulted on, PNB demanded the sugar but Noah's Ark refused. The Supreme Court ordered Noah's Ark to either deliver the sugar covered by the receipts to PNB, or pay PNB damages of 39.1 million pesos plus legal interest and 150,000 pesos in fees and costs. However, Noah's Ark could deliver the sugar only upon PNB paying any storage fees owed.

Uploaded by

Sarah Elizabeth Lunas
Copyright
© © All Rights Reserved
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Download as DOC, PDF, TXT or read online on Scribd
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G.R. No.

129918 Case Digest

G.R. No. 129918, July 9, 1998

PNB

vs Hon. Marcelino Sayo, Noahs Ark Sugar Refinery , Alberto Looyuko, Jimmy Go and Wilson Go

Facts:

Noahs Ark issued several warehouse reciepts covering sugar deposits by Rosa Sy, RNS Merchandising
and St. Therese Merchandising. Later, 4 of these receipts were negotiated to Luis Ramos and Cresencia
Zoleta. Ramos and Zoleta later used these receipts to secure a loan with PNB.

Ramos and Zoleta failed to pay the loan, so PNB is now demanding for the delivery of the sugar deposit
covered by the warehouse receipts. Noahs Ark refused to deliver such, and claims ownership over sugar
deposits. For such reason, PNB filed a complaint for specific performance with damages and writ of
attachment against Noahs Ark.

RTC Manila denied the writ of attachment.

Noahs Ark claim that in an agreement, defendants agreed to sell Rosa Sy of RNS Merchandising and
Teresita of St. Therese Merchandising the volume of sugar deposited for 63M. They also claim that the
vendees and first endorsers of the receipts did not acquire ownership, thus the subsequent endorsers
did not acquire a better right of ownership also.

Rosa Sy and Teresita Ng is saying that the transaction between them and defendants is a simulated sale,
thus they are not answerable in damages to him. PNB motion for summary judgment, thereupon filed a
Petition for Certiorari with CA.

CA ordered RTC to render a summary judgment in favor of PNB.


Trial court rendered judgment dismissing plaintiffs complaint against private respondents for lack of
cause of action and likewise dismissed private respondents counterclaim against PNB and of the Third-
Party Complaint and the Third-Party Defendants Counterclaim. On September 4, 1992, the trial court
denied PNBs Motion for Reconsideration.

On June 9, 1992, the PNB filed an appeal from the RTC decision with the Supreme Court, G.R. No.
107243, by way of a Petition for Review on Certiorari under Rule 45 of the Rules of Court.

Ruling:

SC: (a) to deliver to the petitioner Philippine National Bank, the sugar stocks covered by the Warehouse
Receipts/Quedans which are now in the latters possession as holder for value and in due course; or
alternatively, to pay (said) plaintiff actual damages in the amount of P39.1 million, with legal interest
thereon from the filing of the complaint until full payment; and

(b) to pay plaintiff Philippine National Bank attorneys fees, litigation expenses and judicial costs hereby
fixed at the amount of One Hundred Fifty Thousand Pesos (P150,000.00) as well as the costs.

While PNB is entitled to the sugar stocks as endorsee of the receipts, delivery to it shall only be effected
upon payment of the storage fees. Because it is imperative to the right of the warehouse man to
demand payment of his lien.

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