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005 - Leung Ben v. O'Brien, 38 PHIL 182

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Title: Leung Ben vs. O’brien, et al., G.R. No.

L-13602 April 6, 1918

TOPIC: Sources of Obligations - Law

DOCTRINE: According to the Civil Code obligations are supposed to be derived either from (1)
the law, (2) contracts and quasi-contracts, (3) illicit acts and omission, or (4) acts in which some
sort of lame or negligence is present. The obligations which in the Code are indicated as quasi-
contracts, as well as those arising ex lege, are in the common la system, merged into the
category of obligations imposed by law, and all are denominated implied contracts.

FACTS:

O’Brien filed an action against Leung Ben to recover a total amount of P15,000.00 which the
former lost in a series of gambling, banking and percentage games held in more than two
months prior the filing of suit.

The plaintiff asked for the attachment of the defendant’s properties on the grounds that the latter
had plans of leaving the Philippines with the intent of defrauding his creditors. A writ of
attachment was issued and the sheriff attached a sum of P15,000.00 which the defendant had
deposited with the Banking Corporation on its authority.

ISSUE:

Whether the statutory obligation to restore money won at gaming is an obligation arose from
“contract, express or implied.”

Held:

Yes. The Court explained that the duty of the defendant to refund the money which he won from
the plaintiff at gaming is a duty imposed by statute. Moreover, this a duty in the nature of debt
and is properly classified as an implied contract.

It is well- settled by the English authorities that money lost in gambling or by lottery, if
recoverable at all, can be recovered by the loser in an action of indebitatus assumpsit for money
had and received.

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