cuevas- deposits

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DEPOSIT

CHAPTER 1- DEPOSIT & ITS DIFFERENTKINDS

#1962Definition of Contract of Deposit

• “Depositum” (Roman Law)

Governing Law

• Title XII, Book IV of the New Civil Code, subject to itstransitional provisions (Artc. 2252-2269)

Characteristics of the Contract1. Real Contract

• Because it is perfected by the delivery of the subjectmatter (like commodatum & mutuum)

2. Unilateral

• When the deposit is gratuitous, because only thedepositary has an obligation.

3. Bilateral

• Where the deposit is for compensation, becuase itgives rise to obligations on part of both the

depositary & the depositor

Safekeeping, Prinicpal Purpose of the Contract1. Effect where safekeeping is only an accessory

obligation

• Deposit is not constituted but some other contractlike lease, commodatum, or agency (the principalend of the contract is representation of one byanother and not the custody and preservation of thething delivered pg.105)

2. Where the balance of commission account in agent’s possession at principal’s disposal appropriated by agent..

• The same acquires at once the the cahracter of a

deposit which the former must return to the latter atany time it is demanded.

• The agent undoubtedly commits the crime of estafaif he appropriates or diverts it to his own use. Itcould only become his as a loan, if so expresslyagreed by its owner who would then be obligated notto demand it until the expiration of the legal orstipulated period

3. Dollars deposited with bank sold by bank whichcredited peso proceeds to depositor’s current account

• This arrangement is a contract of deposit. The bankviolates its obligation if it sells the dollars and itcannot defeat the plaintiff’s claim by asserting thatthe peso proceeds of the sale were properly creditedto the latter’s current account.

• The depositary cannot make use of the thingdeposited except only in the two instancesmentioned in Art. 1977

Deposit Distinguished from Mutuum

Deposit Mutuum The principal purpose issafekeeping or mere custody

The consumption of thesubject matter

The depositor can demandthe return of the subjectmatter at will

The lender must waituntil the expiration of the period granted to thedebtor

Both movable and

immovable property may bethe object

Only money and any

other fungible thing

Deposit Distinguished from CommodatumDeposit Commodatum

The principal purpose issafekeeping

The transfer of the use

MAY be Gratuitous Essentially and ALWAYSgratuitous

In extrajudicial deposit,only movable things maybe the object

Both movable andimmovable property maybe the object

#1963Binding effect of Agreement to Deposit

• A deposit is a real contract and is, therefore perfectedonly upon delivery of the object of the contract.

• Where there has been no delivery, there is merely anagreement to deposit, which however is binding andenforceable on the parties. Hence, a contract of future deposit is consensual.

#1964Creation of Deposit

• A deposit may be created by virtue of a court order orby law and not by the will of the parties.

• In a deposit, it is essential that the depositary is notthe owner of the property deposited.

Kinds of Deposit1. Judicial

• One which takes place when an attachment orseizure of property in litigation is ordered

2. Extrajudicial a. Voluntary

•One wherein the delivery is made by the will of thedepositor or by two or more persons each of whombelieves himself entitled to the thing deposited

b. Necessary

• One made in compliance with a legal obligation, oron the occassion of any calamity, or by travellers inhotels and inns, or by travellers with commoncarriers

#1965Contract of Deposit Generally Gratuitous-Exceptions

1. Where there is contrary stipulation

• Provided it is not contrary to laws, morals, good

customs, public order or public policy2. Where depositary engaged in business of storing

goods

• Depositary is engaged in the business of storinggoods (as in the case of a warehouseman) forcompensation and not out of pure generosity

3. Where prop saved from destruction w/out knowledgeof owner

• In involuntary deposit, where property is saved fromdestruction during a calamity by another personwithout the knowledge of the owner, the latter isbound to pay the former just compensation

#1966

Subject Matter of Deposit• Only movable property maybe the object of

estrajudicial deposit, whether voluntary or necessary. This proceeds from the object of a deposit which issafekeeping of a thing. The possibility that a thingmay disappear or may be lost or stolen is not presentin real property. Thus, the delivery of the keys of ahouse cannot be considered as a deposit of the same,and entrusting its care and custody is juridically anagency.

• Judicial deposit however, may cover movable as wellas immovable property its purpose being to protectthe rights of parties to a suit.

Only Corporeal Things Contemplated

• This article does not embrace incorporeal orintangible property such as rights and actions, for itfollows the person of the owner wherever he goesand is not, by reason of its incorporeality, susceptibleof custody in the tangible sense that deposit is juridically understood. Deeds or documents in whichthose rights contained can be the object of deposit,but in such a case, they are only the materialized andrepresentative expression of the rights.

#1967Kinds of Extrajudicial Deposit



• Deposit is generally voluntary.

• It becomes necessary in the cases mentioned inArts. 1996 & 1998, i.e. when made in compliancewith a legal obligation, on the occassion of anycalamity or by travellers in hotels/inns.

• The deposit of goods made by travellers orpassengers with common carriers may also beregarded as necessary.

CHAPTER 2- VOLUNTARY DEPOSIT

SECTION 1- General Provisions

#1968Voluntary Deposit Defined

• It is one wherein the delivery is made by the will of the depositor.

• Ordinarily, there are only two persons involved.Sometimes however, the depositary may be a thirdperson.

Voluntary & Necessary Deposits Distinguished

• In a voluntary deposit, the depositor has completefreedom in choosing the depositary

• In a necessary deposit, there is lack of free choice inthe depositor

Depositor Need Not Be Owner of Thing

•

Generally, the depositor must be the owner of thething deposited

• But it may belong to a person other than thedepositor.

• Thus a carrier commission agent, a lessee, etc maydeposit goods temporarily in his possessionconsidering that the contract does not involve thetransfer of ownership.

• As a matter of fact, the depositary cannot dispute thetitle of the depositor to the thing deposited. Thedepositary is in estoppel.

Where there are Several Depositors

• Two or more persons each claiming to be entitled to a

thing may deposit the same with a third person.• In such case, the third person assumes the obligation

to deliver to the one to whom it belongs.

• The action to compel the depositors to settle theirconflicting claims among themselves would be in thenature of an interpleader. Here, one of the depositorsis not the owner.

#1969Form of Contract of Deposit

• This follows the general ruled that contracts shall beobligatory in whatever form they may have beenentered into, provided all the essential requisites fortheir validity are present.

• Thus, except for the delivery of the thing, there areno formalities required for the existence of thecontract

#1970Where Depositary Capacitated &Depositor Incapacitated

• If the depositary is capacitated, he is subject to allthe obligations of a depositary, WON the depositor iscapacitated.

• In the latter case, the depositary must return theproperty to the legal representative of the

incapacitated or to the depositor himself if he shouldacquire capacity.

• Under the law, persons who are capable cannotallege the incapacity of those with whom theycontract.

#1971Where Depositary Incapacitated &Depositor Capacitated

• The incapacitated depositary does not incur the

obligation of a depositary. However, he is liable (1) toreturn the thing deposited while still in his possessionand (2) to pay the depositor the amount by which hemay have benefited himself with the thing or its pricesubject to the right of any third person who acquiredthe thing in good faith.

SECTION 2- Obligations of the Depositary

#1972Obligation to Keep the Thing Deposited & Returnit

• The safekeeping and return of the thing whenrequired, are the two primary obligations of the

depositary1. Degree of Care

• Ordinarily, the depositary must excercise over thething deposited the same diligence as he wouldexcercise over his property for two reasons:

• First: because it is an essential requisite of the juridical relation which involves the depositor’sconfidence in his good faith and trustworthiness; and

• Second. Because of the presumption that thedepositor, in choosing the depositary, took intoaccount the diligence which the depositary isaccustomed with respect to his own property.

• The depositary cannot excuse himself from liabilityin the event of loss by claiming that he excercise the

same amount of care towards the thing deposited ashe would toward his own if such care is less thanthat required by the circumstances.

2. Rules applicable

• The liability of the depositary for the care anddelivery of the thing is governed by the rules onobligations.

a. He is liable if the loss occurs through his fault ornegligence, even if the thing was insured.

b. The loss of the thing while in his possessionordinarily raises a presumption of fault on his part.

c. The required degree of care is greater if the depositis for compensation than when it is gratuitous. Thisis similar to the rule in agency and common carriers.But even when gratuitous, due care must still be

excercised.3. Return before Specified Term

• The thing deposited must be returned to thedepositor whenever he claims it, even though aspecified term or time for such may have beenstipulated in the contract.

#1973Obligation Not to Transfer Deposit

• Unless authorized by express stipulation, thedepositary is not allowed to deposit the thing with athird person because a deposit is founded on trustand confidence and it can be supposed that thedepositor, in choosing the depositary, has taken into

consideration the latter’s qualification.1. Liability for Loss of the depositor...IF HE... a. Transfers the deposit with a third person without

authority although there is no negligence on his partand the third person.

b. Deposits the thing with a third person who ismanifestly careless or unfit although authorized,even in the absence of negligence

c. The thing is lost through the negligence of hisemployees whether the latter are manifestlycareless or not

2. Exemption from Liability



• The depositor is not responsible in case the thing islost without negligence of the third person withwhom he was allowed to deposit the thing if suchthird person is not “manifestly careless or unfit”

#1974Obligation Not to Change Way of Deposit

• The depositary may change the way or manner of thedeposit if there are circumstances indicating that thedepositor would consent to the change.

• However, the depositary should first notify thedepositor and wait for the latter’s decision. Thisrequirement may not be dispensed with unless delaywould cause danger. It follows the general rule thatthe depositary must take godd care of the thing withthe diligence of a good father of a family.

#1975Obligation to Collect Interest on Choses in ActionDeposited

• If the thing deposited should earn interest, thedepositary is under the obligation (1) to collect theinterest as it becomes due and (2) to take steps asmay be necessary to preserve its value and the rights

corresponding to it.• Thus, the depositary of a negotiable promissory note

which has been dishonored by non-payment by themaker, must give notice of dishonor to indorsers forunder the law, indorsers to whom such notice is notgiven are discharged from liability.

• The depositary is bound to collect not only theinterest but also the capital itself when due.

Contract for Rent of Safety Deposit Boxes

• This is not an ordinary contract of lease of things buta special kind of deposit; hence it is not to be strictlygoverned by the provisions on deposit. The relationbetween a bank renting out such boxes and itscustomer with respect to the contents of the box isthat of bailor and bailee. (pg 119)

#1976Obligation Not to Commingle Things Deposited if so Stipulated

• As a rule, the depositary is permitted to comminglegrain or other articles of the same kind and quality.

• In such case, the various depositors of the mingledgoods shall own the entire mass in common and eachdepositor shall be entitled to such portion of theentire mass deposited by him bears to the whole.

• The depositary cannot commingle goods, even if theyare of the same kind and quality, if so stipulated.

#1977Obligation Not to Make Use of Thing DepositedUnless Authorized

• Deposit is for safekeeping of the subject matter andnot for its use.

• The unauthorized use by the depositary would makehim liable for damages. But the depositary may makeuse of the thing deposited even without the expresspermission of the depositor where such use isnecessary for its preservation but in such case theuse is limited for that purpose.

• Thus, a depositary may use a radio received indeposit occassionally to prevent the accumulation of moisture.

#1978Effect if Permission to Use is Given1. If the thing deposited is non-consumable

• And the depositary has permission to use the thing,the contract loses the character of a deposit andacquires that of a commodatum despite the fact thatthe parties may have denominated it as a deposit,

unless safekeeping is still the principal purpose of thecontract.

2. Thing deposited, money or other consumable thing

• The permission to use it will result in its consumptionand converts the contract into a simple loan ormutuum. But its safekeeping is still the principalpurpose of the contract, it is still a deposit but anirregular onel hence it is called an irregular deposit.Bank deposits are in the nature of irregular depositsbut they are really loans governed by the law onloans.

Irregular Deposit Distinguished from Mutuum

Irregular Deposit Mutuum The consumable thingdeposited may bedemanded at will by theirregular depositor forwhose benefit the deposithas been constituted

The lender is bound by theprovisions of the contractand cannot seek restitutionuntil the time for payment,as provided in the contract,has arisen

The only benefit is thatwhich accrues to thedepositor

The essential cause for thetransaction is the necessityof the borrower.A loan with a stipulation topay interest is for the

benefit of both partiesDepositor has preferenceover other creditors withrespect to the thingdeposited.

Common creditors enjoyno preference in thedistribution of the debtor’sproperty

Permission to Use Not Presumed

• Except when such use is necessary for thepreservation of the thing deposited, and the burden ison the depositary to prove that permission has beengiven.

#1979Liability for Loss Through Fortuitous Event

• Generally, the depositary is not liable for loss througha fortuitous event without his fault.

• This rule is similar to Article 1942 which mentions theinstances when the bailee is liable for loss of thething loaned even if it should be through a fortuitousevent.

#1980Relation Between Bank and Depositor1. Contracts of loan

• Deposits of money in banks, whether fixed, savings,and current, are really loans to a bank because thebank can use the same for its ordinary transactionsand for the banking business in which it is engaged.

• Bank deposits are in the nature of irregular deposits;they are really loans because they earn interest.Hence such deposits are governed by the provisionson mutuum or simple loan, and the rules on theimposition of legal interest.

• While the banck has the obligation to return theamount deposited, it has, however, no obligation toreturn or deliver the same money that was deposited.

2. Relation of creditor and debtor

• Accordingly, the relation between a depositor and abank is that of a creditor and debtor. A depositor(creditor) lends the bank (debtor) money and thebank agrees to pay the depositor on demand. Thedeposit agreement between the bank and the

depositor determines the rights and obligations of theparties.

#1981-1982Where Thing Deposited Delivered Closed andSealed1. Obligations of Depositary

a. Return the thing deposited when deliveredclosed and sealed, in the same condition

b. Pay for damages should the seal or lock bebroken through his fault which is presumedunless proved otherwise



c. Keep the secret of the deposit when the seal orlock is broken, with or without his fault.

2. Reason for Rule

• Without this, irresponsable depositaries may violatetheir trusts with impunity. Under par.3, the courtsmay pass upon the credibility of the depositor withrespect to the value of the thing deposited. So, thestatement of the depositor is prima facie evidenceonly. This is necessary in view of the naturaltendency to exaggerate values.

3. When depositary justified to open when there is...a. Presumed authorityb. Necessity

#1983Obligation to Return Products, Accessories andAccessions

• The depositor is the owner or at least represents theowner of the thing deposited. The depositary musttherefore return not only the thing itself but also allits products, accessions and accessories which are aconsequence of ownership.

• Thus the young of an animal which was depositedshall be returned to the depositor

Obligation to Pay Interest on Sums Converted toPersonal Use

• If what has been deposited is money, the depositaryhas no right to make use thereof and therefore, he isnot liable to pay interest.

• If the depositary be in delay or has used the moneywithout permission, he shall be liable for interest asindemnity.

• The depositary owes interest on the sums he hasapplied too his own use from the day on which he didso, and those which he still owes after theextinguishment of the deposit.

#1984Depositor Need Not Proved His Ownership

• The depositary who receives the thing cannot requirethat the depositor prove his ownership over the thing.

• To constitute a deposit, it is not essential that thedepositor be the owner of the thing deposited.

• Furthermore, to acquire proof of ownership may openthe door to fraud and bad faith, for the depositary, onthe pretense of requiring proof of ownership, may beable to retain the thing.

Where Third Person Appears to Be Owner

• In such a case, the articke states the steps thedepositary should take to be relieved of allresponsibility with respect to the thing deposited.

Pars 2 &4 are similar except that for the applicationof par 2, two conditions must exist:1. The thing deposited must have been stolen2. The depositary knows who its true owner is

Effect of Failure of Owner to Claim Within OneMonth

• This period is merely for the protection of thedepositary. If the thing is returned to the depositorafter one month, the true owner of the thing may stillbe recover it through other legal processes.

• Read observation (pg 137)

#1985Right of Two or More Depositors1. Thing deposited divisible and depositors not solidary

• If the thing deposited is divisible and there are two ormore depositors who are not solidary, each one candemand only his share proportionate thereto.

2. Obligation solidary or thing deposited not divisible

• If the obligation is solidary (i.e. the depositary canreturn the thing deposited to any of the depositors),or if the thing is not divisible, the rules on activesolidarity (solidarity among creditors) shall apply tothe effect that each one of the solidary depositors(creditors) may do whatever may be useful to the

others but not anything which may be prejudicial tothe latter and the depositary (debtor) may return thething to any one of the solidary depositors (creditors)unless a demand, judicial or extrajudicial, for itsreturn has been made by one of them in which casedelivery should be made to him.

3. Return to one of depositors stipulated

• If by stipulation the thing should be returned to oneof the depositors, the depositors, the depositary isbound to return it only to the person designatedalthough he has not made any demand for its return.

#1986Persons to Whom Return Must Be Made1. The depositary is obliged to return the thing

deposited, when required, to the depositor, to hisheirs and successors, or to the person who may havebeen designated in the contract.

2. If the depositor was incapacitated at the time of making the deposit, the property must be returnedto his guardian or administrator or the person whomade the deposit or to the depositor himself shouldhe acquire capacity.

3. Even if the depositor had capacity at the time of making the deposit but he subsequently loses his

capacity during the deposit, the thing must bereturned to his legal representative

#1987Place of Return

• The thing must be returned (1) at the place agreedupon by the parties and (2) in the absence of stipulation, at the place where the thing depositedmight be even if it should not be the same placewhere the original deposit was made provided thetransfer was accomplished without malice on the partof the depositary.

• In the first case, the expenses for the transportationshall be borne by the depositor. This is just because

the deposit is constituted for the benefit of thedepositor and not the depositary who assumes nomore than the safekeeping and the return of thething.

• The rule in this article is similar to the general ruleregarding the place of payment (Art. 1251)

#1988Time of Returm

• As a rule, the depositor can demand the return of thething deposited at will and this is true whether aperiod has been stipulated or not.

• In a deposit, whenever a period is agreed to, thesame is for the benefit of the depositor, but it may be

validly waived by him. But the period is generallyupon the depositary.

• If the deposit is for a compensation, the depositary isentitled to the compensation corresponding to theentire period.

• In this case, the period is also for the benefit of thedepositary

• The rule in commodatum is different (see Article1946)

When Depositary Not Obliged to Returm ThingDeposited

• The right to immediate restitution is subject to thetwo cases provided in par. 2 (pgs 141)

#1989Right of Depositary To Return Thing Deposited1. Deposit gratuitous

• The depositary may likewise return the thingdeposited notwithstanding that a period has beenfixed for the deposit if (a) the deposit is gratuitousand (b) justifiable reasons (e.g. necessity to goabroad) exist for its return.

• In case the depositor refuses to receive the thing, thedepositary may deposit the thing at the disposal of judicial authority.

2. Deposit for a valuable consideration



• If the deposit is for a valuable consideration, thedepositary has no right to return the thing depositedbefore the expiration of the time designated even if he should suffer inconvenience as a consequence. Heis bound by the period and restitution before itsexpiration constitutes a breach of his obligation.

#1990Liability for Loss by Force Majeure ir GovernmentOrder

• The depositary has the obligation to return the thingdeposited. But he is not liable for loss of the thing byforce majeure or by government order. However, if inplace of the thing he receives money or anotherthing, he has the duty to deliver to the depositorwhat he has received otheriwse, he would enrichhimself at the expense of the depositor

#1991Alienation in Good Faith By Depositary’s Heir

• The obligation of the heir is limited to the return of the price received or to assign the right to collect thesame if it has not been paid and not the real value of the thing. The rule is based on considerations of

equity.• If the purchaser who acquired the thing acted in bad

faith, the depositor may bring an action against himfor its recovery.

• If the heir acts in bad faith, he is liable for damages. The sale or appropriation of the thing depositedconstitutes estafe.

SECTION 3- Obligations of the Depositor#1992Obligation to Pay Expenses of Preservation

• This aricle applies only if the deposit is gratuitous. The depositor would have incurred them just thesame had the thing remained with him. Without the

duty of reimbursement imposed by the article, thedepositor would be enriching himself at the expenseof the depositary. The rule is different incommodatum.

• As the law makes no distinction, the right toreimbursemnt covers all necessary expenses forpreservation, whether ordinary or extraordinary.Useful expenses or those for pure luxury or merepleasure are not covered.

• If the deposit is for a valuable consideration, theexpenses for preservation are borne by thedepositary because they are deemed included in thecompensation. There can however, be a contrarystipulation.

#1993Obligation to Pay Losses IncurredDue to Character of Thing Deposited

• As a rule, the depositary must be reimbursed for losssuffered by him because of the character of the thingdeposited.

• Under the four exceptions enumerated, the depositoris freed from responsibility.

#1994Depositary’s Right of Retention

• The article gives an example of a pledge created bythe operation of law. The thing retained serves as

security for the payment of what may be due to thedepositary by reason of the deposit. The rightgranted in this article is similar to that granted to theagent.

• The rule is different in commodatum.

#1995Other Causes of Extinguishment of Deposit

1. Return of the thing 4. Expiration of the term2. Novation 5. Fulfillment of theresolutory condition3. Merger

Effect of Death of Depositor or Depositary1. Deposit gratuitous

• The death of either the depositor or depositaryextinguishes the deposit, meaning the depositary isnot obliged to continue with the contract of deposit

2. Deposit for compensation

• Is not extinguished by the death of either partybecause an onerous deposit is not personal in natureand thus transmissible to their respective heirs. Butheirs also have the right to terminate the deposit

even before the expiration of the term

CHAPTER 3- NECESSARY DEPOSIT

#1996- 1997When Deposit is Necessary

• A voluntary deposit is made by the free will of thedepositor. In a necessary deposit, this freedom of choice is absent.

• The third kind of necessary deposit is that made bytravellers in hotels or inns.

• The fourth kind is that made by passengers withcommon carriers.

Examples of Necessary Deposit in Compliance witha Legal Obligation1. The judicial deposit of a thing the possession of

which is being disputed in a litigation by two or morepersons.

2. The deposit with a bank or public institution of publicbonds or instruments of credit payable to order orbearer given in usufruct when the usufructuary doesnot give proper security for their conversation.

3. The deposit of a thing pledged when the creditoruses the same without the authority of he owner ormisuses it in any way.

4. Those required in suits as provided in the Rules of Court.

5. Those constituted to guarantee contracts with thegovernment. The deposit arises from an obli of public or admin character.

Necessary Deposit Made on the Occassion of AnyCalamity1. Deposit created by accident or fortuitous event

• The possession of movable property passes from onperson to another by accident or fortuitously throughforce of circumstances and which the law imposes onthe recepient the obligations of a bailee. Here themore immediate object is to save the property ratherthan its safekeeping.

• Such quasi-bailment is ordinarily distinguished by thename involuntary bailment or involuntary deposit.

There must be a causal relation between the calamityand the constitution of the deposit. It is also called“deposito miserable”

#1998- 1999Deposits by Travellers in Hotels and Inns

• Before keeps of hotels or inns may be heldresponsible as depositaries with regard to the effectsof their guests, the ff elements must concur:1. They must have been previously informed about

the effects brought by the guests2. The latter have taken the precautions prescribed

regarding their safekeeping

Extent of Liability of Keepers of Hotels and Inns• The liability is not limited to effects lost or damaged

in the hotel rooms which come under the termbaggage or clothing but include the lost or damagedin hotel annexes such as vehicles in the hotel’sgarage.

• The responsibility extends to all those who offerlodging for a compensation, whatever may be theircharacter.

Terms Explained

• Pg. 149



#2000, 2001, 2002When Hotel-Keeper Liable Regardless of Amountof Care Excercised1. The loss or injury is caused by his servants or

employees as well as strangers, provided that noticehas been given and proper precautions taken.

2. The loss is caused by the act of a thief or robberdone without the use of arms and irressistible forcefor in this case, the hotel-keeper is apparentlynegligent.

When Hotel-Keeper Not Liable1. The loss or injury is caused by force majeure, like

flood, fire, theft or robbery by a stranger (not byhotel-keeper’s servant or employee) with the use of arms or irresistible force, unless he is found to beguilty of fault or negligence in failing to provideagainst the loss or injury from his cause.

2. The loss is due to the acts of the guests, his family,servants or visitors

3. The loss arises from the character of the thingsbrought into the hotel.

#2003Exemption or Diminution of Liability

• Such stipulation is deemed contrary to law, moralsand public policy. They practically volunteer asdepositaries. As such, they have an extraordinarydegree of responsibility for the protection of travellers who have no alternative but to rely on thegood faith of those with whom they take lodging

• It is not necessary to hold an inn-keeper liable thatthe effects of the guests be actually delivered to himor his employees, it is enough that they are in theinn.

#2004Hotel Keeper’s Right to Retain

• This is in the nature of a pledge creted by operationof law. It is given to hotel-keepers to compensatethem for the liabilities imposed on them by law. Thebailee in commodatum may likewise retain the thingloaned for damages by reason of defects thereof.

• The act of obtaining foof or accomodation in a hotelor inn without paying therefor constitutes estafa

CHAPTER 4- SEQUESTRATION OR JUDICIAL DEPOSIT

#2005, 2006, 2007, 2008When Judicial Deposit Takes Place

• A deposit may be consituted judicially or

extrajudicially.• Judicial deposit takes place when an attachment or

seizure of property in litigation is ordered by a court.

• Like when properties are attached by the sheriff uponthe filing of a complaint or a receiver (a disinterestedparty) may be appointed by the court to administerand preserve the property in litigation, or personalproperty may be seized by the sheriff in suits of replevin or manual delivery of personal property.

Nature & Purpose of Judicial Deposit

• The deposit is judicial because it is auxillary to a casepending in court.

• The purpose is to maintain the status quo during the

pendency of the litigation or to insure the rights of the parties to the property in case of a favorable judgement.

Obligation of Depositary of Sequestrated Property

• The depositary of sequestrated property is the personappointed by the court who has the obligation to takecare of the property with the diligence of a goodfather of a family.

• He may not be relieved of his responsibility until thelitigation is ended or the court so orders.

Judicial and Extrajudicial Deposits Distinguished.

Judicial ExtrajudicialOrigin By the will of the

courtBy the will of theparties, hencethere is a contract

Purpose As security and tosecure the right of aparty to recover incase of a favorable jdugement

Custody andSafekeeping of thething

Subject

Matter

Either movable or

immovable property

Only movable

propertyRemuneration

Alwaysremunderated(onerous)

Maybecompensated ornot, but generallygratuitous

In whosehalf it is held

In behalf of theperson who, by the judgement has aright

In behalf of thedepositor or thirdperson designated

#2009Applicable Law

• The law on judicial deposit is remedial or proceduralin nature. Hence the Rules of Court are applicable. The relevant provisions of the Rules of Court are Rule57 (Preliminary Attachment), Rule 59 (Receivership)and Rule 60 (Replivin).

• The Rules of Court also provide for attachment incriminal cases

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