Makati Leasing v Wearever Textile Mills | GR No. 58469 (1983)

Facts:

  • Wearever Textile Mills executed Chattel Mortgage on raw materials and machinery to secure a loan from Makati Leasing.
  • Upon Wearever’s default, Makati filed a petition for extra-judicial foreclosure of the properties. Sheriff was unable to enter the Wearever’s premises.
  • Makati Leasing applied for a replevin. Court ordered a writ of seizure. Wearever filed MR that suspended the writ.
  • Court lifted the TRO of the writ of seizure. Sheriff could not take the machinery with him so instead he just removed the drive motor after determining that subject machinery was not suited for replevin.
  • CA reversed the decision of the court a quo. Said machinery cannot be subject to replevin, much less of a chattel mortgage because it was real property, evidenced by the Sheriff being able to take just the drive motor.

Issue:

  • Whether or not the machinery is personal property?

Ruling:

  • It is personal property because it was agreed upon by the parties at the onset, through chattel mortgage.
  • As provided by Tumalad v Villavicencio, if a house of strong materials can be considered as personal property, then much more with machinery.

Disclaimer: All case digests posted in this blog are my own. If you think I missed important points raised in the case, feel free to let me know and I will credit you for corrections and/or suggestions you may have. Hope this helps!

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