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    Filipinas Marble vs. IAC

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    Pia Janine Contreras
    1) Filipinas Marble Corporation took out a $5 million loan from the Development Bank of the Philippines (DBP) to develop mining claims and deposits, securing the loan with a mortgage on $48.6 million in assets. 2) Filipinas Marble then contracted with Bancom Systems Control to manage the company for 3 years, but Bancom mismanaged the funds and resigned early. 3) When Filipinas Marble failed to repay the loan, DBP foreclosed on the mortgaged properties without demand or notice. Filipinas Marble sued, arguing there was no actual loan since the funds were mismanaged. 4) The court ruled that while the mortgage

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    Filipinas Marble vs. IAC

    Uploaded by

    Pia Janine Contreras
    411 views2 pages
    1) Filipinas Marble Corporation took out a $5 million loan from the Development Bank of the Philippines (DBP) to develop mining claims and deposits, securing the loan with a mortgage on $48.6 million in assets. 2) Filipinas Marble then contracted with Bancom Systems Control to manage the company for 3 years, but Bancom mismanaged the funds and resigned early. 3) When Filipinas Marble failed to repay the loan, DBP foreclosed on the mortgaged properties without demand or notice. Filipinas Marble sued, arguing there was no actual loan since the funds were mismanaged. 4) The court ruled that while the mortgage

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    chattel mortgage

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    1) Filipinas Marble Corporation took out a $5 million loan from the Development Bank of the Philippines (DBP) to develop mining claims and deposits, securing the loan with a mortgage on $48.6 million in assets. 2) Filipinas Marble then contracted with Bancom Systems Control to manage the company for 3 years, but Bancom mismanaged the funds and resigned early. 3) When Filipinas Marble failed to repay the loan, DBP foreclosed on the mortgaged properties without demand or notice. Filipinas Marble sued, arguing there was no actual loan since the funds were mismanaged. 4) The court ruled that while the mortgage

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    411 views2 pages

    Filipinas Marble vs. IAC

    Uploaded by

    Pia Janine Contreras
    1) Filipinas Marble Corporation took out a $5 million loan from the Development Bank of the Philippines (DBP) to develop mining claims and deposits, securing the loan with a mortgage on $48.6 million in assets. 2) Filipinas Marble then contracted with Bancom Systems Control to manage the company for 3 years, but Bancom mismanaged the funds and resigned early. 3) When Filipinas Marble failed to repay the loan, DBP foreclosed on the mortgaged properties without demand or notice. Filipinas Marble sued, arguing there was no actual loan since the funds were mismanaged. 4) The court ruled that while the mortgage

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    60. Filipinas Marble Corporation vs.

    The Honorable Intermediate


    Appellate Court, The Honorable Candido Villanueva, Presiding Judge
    Of Br. 144, RTC, Makati, Development Bank Of The Philippines
    (Dbp), Bancom Systems Control, Inc. (Bancom), Don Ferry, Casimero
    Tanedo, Eugenio Palileo, Alvaro Torio, Jose T. Pardo, Rolando
    Atienza, Simon A. Mendoza, Sheriff Norvell R. Lim, G.R. No. L-68010
    May 30, 1986

    Facts:

    Petitioner Filipinas Marble Corporation filed an action for nullification


    of deeds and damages with prayer for a restraining order and a writ of
    preliminary injunction against the private respondents. Filipinas Marble
    applied for a loan in the amount of $5,000,000.00 with DBP in its desire to
    develop the potentials of its mining claims and deposits. Filipinas Marble
    shall secure the 5 Million loan by a final mortgage on its assets with a total
    approved value of P48,630,756.00. Filipinas Marble entered into a
    management contract with Bancom whereby the latter agreed to manage
    the plaintiff company for a period of three years. Bancom and their
    directors/officers mismanaged and misspent the loan, after which Bancom
    resigned with the approval of DBP even before the expiration date of the
    management contract. Filipinas Marble failed to comply with its obligations.
    DBP completely abandoned Filipinas Marble’s project and proceeded to
    foreclose the properties mortgaged to it by petitioner without previous
    demand or notice.

    Filipinas Marble in its complaint seeks the annulment of the deeds of


    mortgage and deed of assignment which it executed in favor of DBP in
    order to secure the $5,000,000.00 loan because it is their contention that
    there was no loan at all to secure and that, there was failure of
    consideration with regard to the execution of said deeds as the loan was
    never delivered to them. DBP opposed the issuance of a writ of preliminary
    injunction stating that under Presidential Decree No. 385, DBP's right to
    foreclose is mandatory.

    Issue: Whether or not there was no valid loan contract for failure of
    consideration, the mortgage cannot exist or stand by itself being a mere
    accessory contract.

    Ruling:

    Yes.

    A mortgage is a mere accessory contract and its validity would


    depend on the validity of the loan secured by it. But this does not mean that
    because the chattel mortgage involved was not registered, the same is null
    and void. Article 2125 of the Civil Code clearly provides that the non-
    registration of the mortgage does not affect the immediate parties.

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