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Bachrach Motor Case Digest PDF
Bachrach Motor Case Digest PDF
-‐ PNB brought an action against Ledesma and his wife for the
Facts: recovery of mortgage credit.
-‐ Bachrach brought this action to recover the amount of judgments. It o PNB amended its complaint to include Bachrach Motor as a
appealed form the judgment declaring the right of PNB to the 6,300 party because it claims to have some right to certain
stock dividends as a preferred one absolving PNB and Ledesma properties which PNB was also claiming.
form the complaint. -‐ CFI Bacolod rendered judgment in favor of PNB.
-‐ It prayed that: o Bachrach brought an action against Talisay to recover the
o The transfer certificate of stock dividends of Talisay Milling of bonus or dividends declared by the corporation against
the PNB be declared null and void Mariano Ledesma as one of the owners of the hacienda w/c
o That Talisay Milling be ordered to cancel the entry of the had been mortgaged to PNB to secure obligation of Talisay.
transfer of 6,300 stock dividends made by it on its books in Issues:
favor of PNB -‐ WON pledge of stocks was ineffective against Bachrach because
o That Talisay Milling be order to pay Php 22K in case the evidence of its date was not made to appear in a public instrument.
6300 stock dividends could not be sold or if the proceeds of -‐ WON pledge could not legally exist because the certificate was not
the sale are insufficient. the shares themselves.
o That the defendants pay the cost of suit. o Certificate of stock cannot be the subject matter of the
Antecedent Facts: contracts of pledge or chattel mortgage.
-‐ Bachrach obtained judgment against Ledesma in the sum of 3K. Held:
-‐ The special sheriff, in compliance with the writ of execution attached -‐ The pledge of stock dividends is valid against Bachrach Motor
all right, title to and interest w/c Ledesma may have in any bonus, because the certificate was delivered to creditor bank PNB,
dividend, share of stock, money or property w/c Ledesma is entitled notwithstanding the fact that the contract DOESN'T appear in a
to receive from Talisay Milling. public instrument.
o This is by virtue of the fact that Ledesma mortgaged his land o Civ. Code provides that: no pledge shall be effective against
rd
in favor of PNB to guarantee the indebtedness of Talisay a 3 person unless evidence of its date appears in a public
Milling or w/c defendant is entitled to receive from Talisay on instrument.
account of being a stockholder. § But this provision has been modified by Chattel
o The notice of attachment was served to both Ledesma and Mortgage Law (Sec 4)
Talisay. § A chattel mortgage shall not be valid against any
§ Talisay even received a copy of the notice of person except the mortgagor, his
attachment. executor/administrator UNLESS the possession of
-‐ On Oct 3, 1927, Bachrach obtained judgment against Ledesma the property is delivered to and retained by the
o Writ of execution caused attachment of Ledesma’s right of mortgagee OR unless the mortgage is recorded in
redemption over parcels of land. the office of the Register of Deeds of the province in
o On the day of issuance of the execution, real properties were w/c the mortgagor resides.
mortgaged to PNB to secure payment to said bank by -‐ Certificate of stock or of stock dividends under the corporation law
Ledesma of the sum of P624K are QUASI NEGOTIABLE instruments in the sense that they may be
§ In the same instrument of mortgage, Ledesma given in pledge or mortgage to secure an obligation.
mortgaged in favor of PNB shares owned by him in o Petitioner Bachrach contends that pledge couldn't legally
Talisay Millng. exist because the certificate was not the shares themselves
§ Certificate covering 6,300 stock dividends were and that the stock certificate cannot be the subject matter of
delivered as security to Atty. Roman as a contract of pledge or chattel mortgage.
representative of bank PNB.
o Talisay Milling granted a bonus or compensation to the
owners of the real properties mortgaged to answer the debts
contracted by it with PNB.