Binalbagan Estate v. Valeriano M. Gatuslao

Summary

This case resolved a dispute over ownership of sugar rent proceeds from mortgaged property. Hacienda San Jose was sold by sheriff to satisfy a mortgage, with both the purchaser Gatuslao and mortgage creditor Seva claiming the pending sugar rents worth P8,376.20. The trial court awarded the proceeds to Seva based on Article 1877 of the Civil Code. The Supreme Court reversed, holding that under Article 1468, all fruits belong to the purchaser from the day the sale contract was perfected. The Court emphasized that a mortgage creditor cannot sell property to satisfy the mortgage and simultaneously retain rights to that property, applying the principle that accessories follow the principal under Article 353.