Case Digests in Credit Transactions

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    Republic of the Philippines vs BagtasG.R. No. L-17474; October !" 1#$

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    'ose Bagtas borro(e) fro* the Bureau of +ni*al ,n)ustr bulls for a perio) of one ear sub/ect to abree)ing fee of 10 of the boo2 value of the bulls. 3pon the epiration of the contract" Bagtas as2e) for arene(al for another perio) of one ear. 5o(ever" the 6ecretar of +griculture an) Natural Resources approve)

    the rene(al of onl 1 bull an) reueste) the return of the other t(o. Bagtas (rote to the 8irector of +ni*al,n)ustr reiterating his )esire to bu the bulls" but he faile) to neither pa its boo2 value nor return the*.

    9he trial court ren)ere) /u)g*ent or)ering the pa*ent of the total value of the bulls plus bree)ingfees (ith interest on both su*s. %elici)a) Bagtas" the spouse an) a)*inistratri of 'ose Bagtas: estate (asnotifie). 6he file) a *otion alleging that the bulls (ere alrea) returne) to the Bureau of +ni*al ,n)ustr butthe r)bull )ie) fro* a gunshot (oun) inflicte) )uring a 5u2 rai). %urther*ore" she conten)s that such )eath(as )ue to force *a/eure an) therefore shoul) be relieve) fro* the )ut of returning the bull or paing itsvalue.

    ,ssue&hether the estate of the late )efen)ant 'ose Bagtas shoul) be hel) liable to pa for the value of the

    bull that (as 2ille) (hile in their custo).

    Ruling&9he loan b the appellee to the late )efen)ant 'ose

    . . . is liable for loss of the things" even if it shoul) be through a fortuitous event&

    ?@ ,f he 2eeps it longer than the perio) stipulate) . . .

    ?@ ,f the thing loane) has been )elivere) (ith appraisal of its value" unless there is a stipulationee*pting the bailee fro* responsibilit in case of a fortuitous event;

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    %acts&Petitioner uestions the 8ecision of the =ourt of +ppeals or)ering the return an) surren)er of Lots

    an) to the private respon)ents" heirs of Octaviano an)