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It follows that ownership of the lot was never transferred to petitioner. Hence, he cannot claim that the instant case is an action to recover ownership and full possession of the property which, in the first place, never came into his possession for lack of requisite delivery. Clearly, the case filed by petitioner was an action for specific performance of a written contract of sale which, pursuant to Art. 1144 of the Civil Code, prescribes in 10 years from the accrual of the right of action. In the same vein, said action is barred by laches having allowed 21 years to lapse before enforcing his alleged right.Sales Case DigestsUST Faculty of Civil Law Page 362A SY 2009-2010
Perfecto Dy , Jr. vs. Court of AppealsJuly 8, 1991Third DivisionJustice Gutierrez, Jr.Facts:Perfecto Dy and Wilfredo Dy are brothers. Wilfredo Dy purchased a truck and a farm tractor through financing extended by Libra Finance and Investment Corporation. Both truck and tractor were mortgaged to Libra as a security for the loan.The petitioner, Perfecto Dy, wanted to buy the Sales Case DigestsUST Faculty of Civil Law Page 372A SY 2009-2010
tractor from his brother, therefore he wrote a letter to Libra requesting that he be allowed to purchase from Wilfredo Dy the said tractor and assume the mortgage debt from the latter. Libra, thru its manager, approved the petitioner’s request. Wilfredo executed a deed of absolute sale in favor of Perfecto.A PNB check was issued in favor of Libra, thus the indebtedness of Wilfredo with the financing firm has bee settled. Libra insisted, however that it be cleared first before Libra could release the tractor in question.Meanwhile a civil case entitled ‘”Gelac Trading, Inc v. Wilfredo Dy was pending in another court in Cebu regarding a collection case to recover a sum. Through an alias writ of execution, the sheriff was able to seize and levy on the tractor which was in the premises of Libra in Carmen, Cebu. The tractor was subsequently sold at public auction. The property was sold to Antonio Gonzales. It was only when the check was cleared that Perfecto learned about Gelac having already taken custody of the subject tractor.Perfecto Dy filed and action to recover the subject tractor against “Gelac Trading “ with the RTC in Cebu City. RTC rendered judgment in favor of Perfecto, pronouncing that Perfecto is the owner of the tractor and directing Gelac Trading Corporation and Antonio Gonzales to return the same to Perfecto.On appeal, the Court of Appeals reversed the decision of the RTC and dismissed the complaint. It held that the tractor in question still belonged to Wilfredo Dy when it was seized and levied by the sheriff by virtue of the alias writ of execution. Issue:Whether or not the property(tractor) in question belongs to the mortgagor upon the execution of the chattel mortgage.