Sergs Products & Sergio Goquiolay v PCI Leasing | GR No. 137705 (2000)

Facts:

  • Sergs Products and PCI entered into a chattel mortgage that involves machineries for a chocolate-making business.
  • When Sergs defaulted, PCI filed a writ of replevin.
  • Sergs questioned that a writ of replevin is not applicable as a remedy since the machineries are real property.
  • PCI contended that machineries and equipment are personal properties.

Issue:

  • Whether or not the machinery and equipment became real properties by virtue of immobilization.

Ruling:

  • Under normal circumstances, machinery and equipment can be considered real property through immobilization. But in this case, the presence of a chattel mortgage presupposes that both parties agreed to consider it as personal property.

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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