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PHILIPPINE JURISPRUDENCE - FULL TEXTThe Lawphil Project - Arellano Law Fon!ation"#R# No# $%&&'( )cto*er %+ %&&$RU, L# TSAI ./# H)N# C)URT )F APPEALS+ ET AL#

Rep*lic o0 the Philippine/SUPRE1E C)URT

1anila

FIRST DI2ISI)N

"#R# No# $%&&'( )cto*er %+ %&&$

RU, L# TSAI+ petitioner+./#H)N# C)URT )F APPEALS+ E2ER TEXTILE 1ILLS+ INC# an! 1A1ERT) R2ILLALU3+ re/pon!ent/#

4---------------------------------------------------------4

5"#R# No# $%&$&'# )cto*er %+ %&&$#6

PHILIPPINE ,AN7 )F C)11UNICATI)NS+ petitioner+./#H)N# C)URT )F APPEALS+ E2ER TEXTILE 1ILLS an! 1A1ERT) R2ILLALU3+ re/pon!ent/#

8UISU1,IN"+ J#9

The/e con/oli!ate! ca/e/ a//ail the !eci/ion$o0 the Cort o0 Appeal/ in CA-"#R# C2 No#:%'(;+ a00ir+ in Ci.il Ca/e No#('-?(%;@# Al/o a//aile! i/ re/pon!ent cort/ re/oltion !enBin= petitioner/ + where it/ 0actorB /tan!/+ an! the chattel/ locate!therein a/ en

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i

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e Two % Kin!in= 1achine/ # # #

I2# AnB an! all replace

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The !i/pte! propertie/+ which were .ale! at P?+&&&+&&&&+ are9 $? Interloc Circlar 7nittin=1achine/+ $ Jet DrBin= Eip

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I

THE H)N)RA,LE C)URT )F APPEALS SEC)ND DI2ISI)N ERRED IN EFFECT1A7IN" A C)NTRACT F)R THE PARTIES , TREATIN" THE $'($ AC8UIRED1ACHINERIES AS CHATTELS INSTEAD )F REAL PR)PERTIES KITHIN THEIREARLIER $'>@ DEED )F REAL AND CHATTEL 1)RT"A"E )R $'>' DEED )FCHATTEL 1)RT"A"E#

II

THE H)N)RA,LE C)URT )F APPEALS SEC)ND DI2ISI)N ERRED IN H)LDIN"THAT THE DISPUTED $'($ 1ACHINERIES ARE N)T REAL PR)PERTIES DEE1EDPART )F THE 1)RT"A"E DESPITE THE CLEAR I1P)RT )F THE E2IDENCE

AND APPLICA,LE RULIN"S )F THE SUPRE1E C)URT#

III

THE H)N)RA,LE C)URT )F APPEALS SEC)ND DI2ISI)N ERRED IN DEE1IN"PETITI)NER A PURCHASER IN ,AD FAITH#

I2

THE H)N)RA,LE C)URT )F APPEALS SEC)ND DI2ISI)N ERRED INASSESSIN" PETITI)NER ACTUAL DA1A"ES+ ATT)RNES FEES ANDEXPENSES )F LITI"ATI)N F)R KANT )F 2ALID FACTUAL AND LE"AL ,ASIS#

2

THE H)N)RA,LE C)URT )F APPEALS SEC)ND DI2ISI)N ERRED IN H)LDIN"A"AINST PETITI)NERS AR"U1ENTS )N PRESCRIPTI)N AND LACHES#;

In "#R# No# $%&&'(+ P,Co< rai/e! the 0ollowin= i//e/9

I#

DID THE C)URT )F APPEALS 2ALIDL DECREE THE 1ACHINERIES LISTED UNDERPARA"RAPH ' )F THE C)1PLAINT ,EL)K AS PERS)NAL PR)PERT )UTSIDE )FTHE $'>@ DEED )F REAL ESTATE 1)RT"A"E AND EXCLUDED THE1 FR)1 THE REALPR)PERT EXTRAJUDICIALL F)RECL)SED , P,C)1 DESPITE THE PR)2ISI)N INTHE $'>@ DEED THAT ALL AFTER-AC8UIRED PR)PERTIES DURIN" THE LIFETI1E )FTHE 1)RT"A"E SHALL F)R1 PART THERE)F+ AND DESPITE THE UNDISPUTED FACTTHAT SAID 1ACHINERIES ARE ,I" AND HEA2+ ,)LTED )R CE1ENTED )N THE REALPR)PERT 1)RT"A"ED , E2ER TEXTILE 1ILLS T) P,C)1+ AND KERE ASSESSEDF)R REAL ESTATE TAX PURP)SESO

II

CAN P,C)1+ KH) T))7 P)SSESSI)N )F THE 1ACHINERIES IN 8UESTI)N IN "))D

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FAITH+ EXTENDED CREDIT FACILITIES T) E2ER TEXTILE 1ILLS KHICH AS )F $'(%T)TALLED P'+@?>+&'@#%(+ KH) HAD SPENT F)R 1AINTENANCE AND SECURIT )NTHE DISPUTED 1ACHINERIES AND HAD T) PA ALL THE ,AC7 TAXES )F E2ERTEXTILE 1ILLS ,E LE"ALL C)1PELLED T) RETURN T) E2ER THE SAID1ACHINERIES )R IN LIEU THERE)F ,E ASSESSED DA1A"ES# IS THAT SITUATI)N

TANTA1)UNT T) A CASE )F UNJUST ENRICH1ENTO>

The principal i//e+ in or .iew+ i/ whether or not the incl/ion o0 the e/tione! propertie/ inthe 0oreclo/e! propertie/ i/ proper# The /econ!arB i//e i/ whether or not the /ale o0 the/epropertie/ to petitioner R*B T/ai i/ .ali!#

For her part+ T/ai a.er/ that the Cort o0 Appeal/ in e00ect @ !ee! o0 Real an! Chattel 1ort=a=e or $'>' !ee! o0 Chattel1ort=a=e#(A!!itionallB+ T/ai ar=e/ that re/pon!ent cort erre! in hol!in= that the !i/pte!$'($

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factoi

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thereo0 that9 Ga chattel

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!octrine o0 lache/ to prej!ice or !e0eat the ri=ht/ o0 an owner#%%

A/ to the awar! o0 !a

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inco#%(Th/+ P,Co

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