Orozco v. Araneta · G.R. L-3691

Petitioner: Orozco
Respondent: Araneta
Citation: G.R. No. L-3691
Court: Supreme Court
Division: En Banc
Ponente: Jugo, J.
Decided: November 21, 1951

Summary

This 1951 Supreme Court case resolved whether stock dividends received by a life usufructuary belong to the usufructuary or naked owners. Jacinto del Saz Orozco y Mortera inherited life usufruct over family properties including mining company shares, while other heirs were naked owners. When Benguet Consolidated Mining Company declared stock dividends totaling 28,570 shares, ownership was disputed. The Supreme Court applied the Bachrach precedent, ruling that stock dividends are income/fruits belonging to usufructuary since they derive from corporate profits, not capital. The Court rejected voting power diminishment arguments and reversed the lower court, awarding stock dividends exclusively to the usufructuary, establishing important precedent on usufruct rights in corporate securities.

Related cases

Other Philippine cases on the same provisions and issues.

Albar v. Carangdang G.R. No. L-13361
Fabia v. Gutierrez David G.R. No. L-123
Policarpio v. Salamat G.R. No. L-21809
Bogacki v. Inserto G.R. No. L-39187
Fernandez v. Fernandez G.R. No. 266145

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By the Intellegal Editorial Board · November 21, 1951

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