AZNAR V.YAPDIANGCO

13 SCRA 486

FACTS:

Theodoro Santos advertised in the newspapers the sale of his Ford Fairlane 500. After the advertisement, a certain de Dios, claiming to be the nephew of Marella, went to the residence of Santos and expressing his uncle’s intent to purchase the car. Since Santos wasn't around, it was Irineo who talked with de Dios. On being informed, Santos advised his son to see
Marella, which the son did. Marella expressed his intention to purchase the car. A deed of sale was prepared and Irineo was instructed by his father not to part with the deed and the car without receiving the purchase price from Marella. When irineo and de Dios arrived at the residence of Marella, the latter averred that his money was short and had to borrow from his sister. He then instructed de Dios and Irineo to go the supposed house of the sister to obtain the money with an unidentified person. He also asked Irineo to leave the deed to have his lawyer see it. Relying on the good faith of Marella, Irineo did as requested. Upon arriving at the house of Marella’s supposed to be sister, de Dios and the unidentified person then disappeared together with the car. This prompted Santos to report the incident to the authorities. Thereafter, Marella was able to sell the land to Aznar. And while in possession of the car, police authorities confiscated the same. This prompted Aznar to file an action for replevin.

HELD:

Marella never had title to the car as the car wasn't ever delivered to him. While there was a deed of sale in his favor, he was only able to obtain possession of the car since he stole it from Santos. The applicable law is Article 559. The rule is to the effect that if the owner has lost a thing, or if he has been unlawfully deprived of it, he has a right to recover it, not only from its finder, thief or robber, but also from third persons who may have acquired it in good faith from such finder, thief or
robber. The said article establishes 2 exceptions to the general rule of irrevindicabilty—to wit, the owner has lost the thing or has been unlawfully deprived thereof. In these cases, the possessor cannot retain the thing as against the owner who may recover it without paying any indemnity, except when the possessor acquired it in a public sale. Furthermore, the common law principle that where one of two innocent persons must suffer a fraud perpetrated by another, the law  imposes the loss upon the party who, by his misplaced confidence, has enable the fraud to be committed, cannot be applied in this case, which is covered by an express provision of law.