Vicente T. Tan v. The Honorable Court of Appeals (Former Special First Division)

Summary

Vicente T. Tan and associated corporations sought reconveyance of 359,615 shares in Continental Bank allegedly fraudulently transferred while Tan was under military detention during martial law. Continental Bank was closed in 1974 due to insolvency, and while detained, Tan executed agreements in 1977 transferring the shares to corporations allegedly controlled by Herminio Disini. The bank reopened as Interbank. Petitioners filed the reconveyance action in 1987, claiming constructive trust and seeking damages from Central Bank. The Supreme Court dismissed the case, ruling it was barred by the 8-year prescriptive period under Civil Code Article 1140 for recovery of movables. The Court rejected arguments that martial law constituted force majeure interrupting prescription, noting Tan successfully pursued other legal remedies during detention. The Court also found no cause of action against Central Bank since it was not the actual assignee of the disputed shares but merely an indirect owner through loan arrangements with other entities.