Esteban Ranjo v. Gregorio Salmon

Summary

This 1910 Supreme Court case established important principles regarding mortgage rights and property ownership. Esteban Ranjo inherited land which he mortgaged to Francisca Gonzalez, who subsequently transferred her mortgage rights to Valeriano Tomas, who then transferred them to Gregorio Salmon. When Ranjo attempted to redeem the property, Salmon refused, claiming outright ownership based on a purported sale from Tomas. The Supreme Court affirmed the lower court's ruling that Tomas, being merely a mortgage creditor, could not sell the land to Salmon. The Court applied Civil Code provisions establishing that creditors cannot appropriate mortgaged property and only true owners can dispose of their property. This case reinforced the distinction between mortgage security interests and property ownership, protecting the rights of true owners against invalid transfers by mortgage creditors.