- Petitioner
- Henry Koa
- Respondent
- The Hon. Court of Appeals
- Citation
- G.R. No. 84847
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Melo, J.
- Decided
- March 5, 1993
Summary
The Koa spouses obtained vehicle financing from People's Car Inc., which assigned the promissory note and chattel mortgage to BA Finance Corporation. When the spouses defaulted, BA Finance sued for replevin. The spouses had earlier surrendered the vehicle to People's Car Inc. claiming factory defects and requesting replacement. The Supreme Court ruled that as assignee, BA Finance was subrogated to all obligations of People's Car Inc., including warranty obligations. Since People's Car Inc. retained the vehicle after their replacement offer expired, this constituted cancellation of the sale. Applying the principle against unjust enrichment, the Court held that requiring payment after the vendor retained the vehicle would be inequitable, and dismissed the complaint for replevin.