7/29/2019 Title IV Estoppel

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Title IV- ESTOPPEL

Article 4131.

Concept of Estoppel

- is a bar which precluded a person from denying or assertinganything contrary to that which has been, in contemplation oflaw, established as the truth either by acts of judicial orlegislative officers, or by his own deed or representationeither express or implied

Waiver and Estoppel

- Doctrine of waiver belongs to the family of, nature of, is based on, Estoppel

- Where there is no estoppel, there is no waiver

Case:

ROYALES v. IAC- Recourse to the barangay court; if the aggrieved partydid not make a timely objection it is deemed waived- estoppel

PUREZA v. CA, Asia Trust Development Bank- proper and timely inheading off petitioners shrewd efforts at renouncing his previous acts to theprejudice of parties who had dealt with him honestly and in good faith(petitioner having performed affirmative acts upon which the respondentsbased their subsequent actions)

CRUZ v. SPS. MALOLOS- petitioner did not indicate the existence of a co-ownership of such property- Estoppel

Examples:1. Sworn declaration2. Saying that there was no defect in the promissory note3. Alleged at one time in court4. Claiming of salary which was omitted in the contract5. Vendee a retro and vendor a retro6. Taxpayer repeatedly requested for reinvestigation of his case and

therefore persuaded a government to postpone the collection oftax- cannot set up prescription of the action

7. If the registered owner of a private or public vehicle sells it toanother, but does not cancel its registration if the buyer causesdamage or injury to another

8. Acceptance of benefits from an abolished office; waived personsright to question the abolition

FIELDMANS INSURANCE CO v. VARGAS- Insurance for a commoncarriers liability; still liable; contract of insurance is one of perfect good faithfor both insurer and insured

MANILA ELECTRIC CO v. CA- fails to object to the construction of anelectric substation- contractual estoppels

PANTRANCO v. COURT OF IND.REL.- when estoppel does not apply- apublic service operator is not allowed to employ a person who has beenconvicted of the crime of theft.

LUZON STEVEDORING CO v. LUZON MARINE DEPT UNION- Estoppellby laches does not apply to employees claiming for overtime pay

- No estoppels can be invoked if the complaining party has notbeen misled

- Erroneous application and enforcement of the law- notconsidered in estoppels

- Affirmative acts of officials may raise estoppels against thegovernment

o Omission or neglect of government official does not

create estoppel against the government

SSC v. SPS ALMEDA- between Almedas testimony and the SSSResolution- the later certainly carries greater probative value. Thus therespondents were indeed in estoppel

LAUREL v. CSC- admission or representation is rendered conclusive uponthe person making it, and cannot be denied or disproved as against theperson relying thereon

LIM v. QUEENSLAND TOKYO COMMODITIES, INC- a petitioner cannot beestopped in questioning the validity of a customers agreement and fromdenying the effects of his conduct

ARTICLE 1432- Suppletory effect- Estoppels must be expressly pleaded

ARTICLE 1433

Kinds of Estoppel:a. Estoppel IN PAIS (equitable estoppels)

a. By conduct or by acceptance of benefitsb. By representation or concealmentc. By silenced. By omissione. By laches (unreasonable delay in suing)

b. Estoppel BY DEED (technical estoppels)a. Estoppel by deed proper (written insutrment) in the

form of a bond or a mortgageb. Estoppel by judgment (court record)- res judicata

Makati Leasing and Finance Corp v. CA- One who agrees to executing achattel mortgage is stopped from denying the chattel mortgage on theground that the subject matter is immovable property

Estoppel in PAIS- it arises when one by his acts, representation oradmissions, or by his silence when he ought to speak out, intentionally orthru culpable negligence induces another to believe certain facts to exist,and such other rightfully relies and act on such belief so that he will beprejudiced if the former is permitted to deny the existence of such facts

Estoppel Fraud

Exist with or without a contract Presupposes entering into a validcontract

May be raised as a defense May properly be the case of action,on account of vitiated consent

Doctrines:1. Conduct because of ignorance or mistake does not result in

estoppel2. Estoppel by laches- unreasonable delay in bringing a court action,

even if the period of prescription has not yet lapseda. Bars an action to create a vested rightb. Does not bar an action to protect a vested rightc. V. Recovery in illegal contracts- Latter prevails; public

policy

Equitable defense of laches requires four elements:1. Complaint has a right2. Defendants conduct; opportunity to institute a suit

3. Lack of knowledge or notice on the part of the defendant thatthat complainant would assert the right on which he bases hissuit

4. Injury or prejudice to the defendant in the event relief is accordedto the complainant

a. Or the suit is not held to be barred

- Mere silence does not mean the person will be in estoppel. Thereshould be a DUTY OR OBLIGATION to speak

- A mere promise to perform or to omit at some future time doesnot necessarily result in estoppel.

o To exist, the promise must be relied on

Estoppel by deed- which precludes a party to a deed and his privies fromasserting as against the other and his privies an right or title in derogation

- Must be a WRITTEN INSTRUMENT

Doctrines:

1. Deed or instrument is null and void if the contract is illegal- NOESTOPPEL2. Normally person estopped must be capacitated; but if a minor is

clever enough to deceive others, estoppels may result3. If a person notarizes (and he is not a party to) the instrument; he

is not in estoppels

Art. 1434. Sale of non-owner- Prejudice in not essential- Sale of after acquired property- Estoppel here Is by operation of law

Inquimboy v. de Cruz- although Albea was not yet the registered owner atthe time he sold it to cruz, the fact remains that he subsequently acquiredvalid title in his own name. The title was later transferred to cruz

Llacer v. Bustillo and Achaval- if the deed of sale is alleged to be aforgery, this is a question of fact that should be threshed out in the trial

Art 1435.

Article 1436. Estoppel on the Part of a Lessee or a bailee

- Who is not permitted to deny the title of his landlord at the timeof the commencement of the relation of landlord and tenantbetween them

- Landlord needs to prove the existence of a contract of lease- Also applies to a donee, servant, pr agent- DOES NOT APPLY: if the tenant does not admit expressly or

implicitly the existence of the lease contract

Art 1437. Estoppel Concerning Immovable Property- One should have been misled, otherwise there is no estoppel- Should have made a fraudulent representation or wrongful

concealment of facts known to him

Fabie, et. Al v. City of Manila- Initially, a certain estero as theboundary of his property. Later, he submitted a formal application , this timethe estero was inside the estate. Is Fabie in estoppel? NO, for the Citycould not have been misled, since its officials never saw the plan.

Cristobal v. Gomez- if a party is part of collusion, and therefore, he couldnot have been misled. Had third parties been misled, there would have beenestoppel

Effect of consent on the Part of the True Owner- Ireneo with hischildrens consent sold a property of his deceased wife. Later the childrenclaimed part of the property stating that the sale. The child are estoppedfrom asserting their rights in view of their acquiescence to the sale.

Art 1438. Allowing someone to assume apparent ownership ofpersonal property

- Acceptance of benefits- If there was no benefit: other party was misled into giving credit

Art 1439. Estoppel is effective only as between the parties theretoor their successors in interest

- Government is not bound by estoppels, particularly so if therehas been an erroneous application and enforcement of the law

- Applicability to questions of fact and not of law- Estoppel may not validate a void contract

- Agency by estoppel