Republic vs Philippine Resources Development Corp [GR. No. L-10141] Case Digest

  

Republic vs Philippine Resources Development Corp

GR. No. L-10141

G-one T. Paisones

Palawan Almaciga tree

Image from: Business Diary Philippines

 

Subtopic:

Price must be in money or its equivalent

 

Facts:

Republic of the Philippines in representation of the Bureau of Prisons instituted against Macario Apostol and the Empire Insurance Co. a complaint in CFI Manila alleging that defendant Apostol submitted the highest bid in the amount of P450.00 per ton for the purchase of 100 tons of Palawan Almaciga from the Bureau of Prisons; that a contract therefor was drawn; Apostol obtained goods from the Bureau of Prisons valued P15,878.59; yet, Apostol paid only P691.10 leaving a balance obligation of P15,187.49. The complaint further avers, as second cause of action, that Apostol submitted the best bid with the Bureau of Prisons for the purchase of three million board feet of logs at P88.00 per 1,000 board feet; that a contract was executed between the Director of Prisons and Apostol pursuant to which contract Apostol obtained deliveries of logs valued at P65,830.00; and that Apostol failed to pay a balance account of P18,827.57.

Philippine Resources Development Corporation moved to intervene, appending to its motion. The complaint recites that for sometime prior to Apostol's transactions the corporate had some goods deposited in a warehouse at Herran, Manila; that Apostol, then the president of the corporation but without the knowledge or consent of the stockholders thereof, disposed of said goods by delivering the same to the Bureau of Prisons in an attempt to settle his personal debts with the latter entity; that upon discovery of Apostol's act, the corporation took steps to recover said goods by demanding from the Bureau of Prisons the return thereof; and that upon the refusal of the Bureau to return said goods.

CFI denied the admission of the complaint-in-intervention filed by herein respondent. Court of Appeals set aside the order denying the motion to intervene and ordered the respondent court to admit the herein respondent corporation's complaint-in-intervention.

Respondents, assert that the subject matter of the original litigation is a sum of money allegedly due to the Bureau of Prisons from Macario Apostol and not the goods or materials reportedly turned over by Apostol in payment of his private debts to the Bureau of Prisons and the recovery of which is sought by the petitioner; and that for this reason, petitioner has no legal interest in the very subject matter in litigation as to entitle it to intervene.

 

Issue:

Whether or not the materials (G.I. sheets, black sheets, M.S. plates, round bars and G.I. pipes) can be made as payment.

 

Held:

Yes.

 

Ratio:

The same article (Art. 1458 NCC) provides that the purchaser may pay "a price certain in money or its equivalent" which means that payment of the price need not be in money. Whether the G.I. sheets, black sheets, M.S. plates, round bars and G.I. pipes claimed by the respondent corporation to belong to it and delivered to the Bureau of Prisons by Macario Apostol in payment of his account is sufficient payment therefor, is for the Court to pass upon and decide after hearing all the parties in the case. Should the trial court hold that it is as to credit Apostol with the value or price of the materials delivered by him, certainly the herein respondent corporation would be affected adversely if its claim of ownership of such sheets, plates, bars and pipes is true.