CHUA KAI V. KAPUNAN, 104 PHIL 110- Possession of Chattels

Possession of chattels in GF is equivalent to title until ordered by the proper court to restore the thing to the owner who was unlawfully deprived thereof. The presumptive owner is entitled to the enjoyment and holding of the thing.

FACTS:

Soto purchased from Youngstown Hardware 700 galvanized iron sheets and round iron bars. He issued as payment a check drawn against Security Bank. Soto then sold the sheets, some of them to Chua Hai. Meanwhile, the check issued for payment was dishonored due to insufficiency of funds. This prompted the hardware store to file a case of estafa against Soto and prayed for the return of the sheets. This was opposed by Chua on the part of the sheets he purchased. Notwithstanding this opposition, the court ordered for its return.

ISSUE:

Whether or not Chua has the right to retain possession?

HELD: Yes.

To deprive Chua, who was in good faith, of the possession of the sheets, may it be temporarily or permanently, is in violation of the rule laid down in Article 559. Possession of chattels in good faith is equivalent to title, until ordered by the proper court to restore the thing to the owner who was illegally derpived thereof. Until such decree is issued, the possessor as presumptive owner is entitled to the enjoyment and holding of the thing. Further, the hardware store or Ong was not unlawfully deprived of the sheets. There was a