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