Perfecto Dy, Jr. v. Court of Appeals

Summary

This case involves a dispute over ownership of a farm tractor between brothers where ownership transfer occurred before execution proceedings. Perfecto Dy purchased a tractor from his brother Wilfredo through a deed of sale executed September 4, 1979, with the mortgagee's consent. Before the mortgage was fully paid, the tractor was seized by a sheriff executing a judgment against Wilfredo in favor of Gelac Trading. The Supreme Court ruled that constructive delivery occurred upon execution of the public instrument, making Perfecto the owner before the sheriff's levy. The Court emphasized that a chattel mortgagor retains ownership and can validly sell with the mortgagee's consent. The case establishes important principles on constructive delivery of movable property, rights of purchasers of mortgaged chattels, and the invalidity of execution against property not owned by the judgment debtor. The Court also upheld damages against Gelac for violating human relations provisions by selling the tractor despite knowing of the pending replevin case.