Manila Mercantile Co… · G.R. 27552

Petitioner: Manila Mercantile Co.
Respondent: Mariano Flores
Citation: G.R. No. 27552
Court: Supreme Court
Division: Second Division
Ponente: Villa-Real, J.
Decided: September 27, 1927

Summary

Manila Mercantile Co. sought to enforce its chattel mortgage rights over personal property that was previously attached in Flores vs. Espino but released through bond filing. After Espino mortgaged the released property to Manila Mercantile Co., it was later attached again during execution of judgment in favor of Flores. The trial court ruled the mortgage fraudulent, but the Supreme Court reversed, establishing that property released from attachment by bond filing becomes free of encumbrances and can be validly mortgaged. The Court held that since the bond secured the creditor's interest, the subsequent mortgage was not fraudulent under Civil Code Article 1297. This decision clarified the legal effects of attachment release through bond filing and the rights of subsequent mortgagees versus execution creditors.

Statutes applied

Civil Code, Art. 1297

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By the Intellegal Editorial Board · September 27, 1927

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