1) The plaintiff Fausto Rubiso purchased a pilot boat named Valentina at a public auction on January 23, 1915 and registered the sale with the Collector of Customs on January 27 and in the commercial registry on March 4.
2) The defendant Florentino E. Rivera purchased the same vessel privately from Sy Qui on January 4, 1915 but did not register the sale until March 17 with the Collector of Customs.
3) According to Philippine law, the purchaser who first registers the acquisition of a vessel has superior rights. Therefore, Rubiso's rights over the vessel prevail since he registered his purchase before Rivera registered his.
1) The plaintiff Fausto Rubiso purchased a pilot boat named Valentina at a public auction on January 23, 1915 and registered the sale with the Collector of Customs on January 27 and in the commercial registry on March 4.
2) The defendant Florentino E. Rivera purchased the same vessel privately from Sy Qui on January 4, 1915 but did not register the sale until March 17 with the Collector of Customs.
3) According to Philippine law, the purchaser who first registers the acquisition of a vessel has superior rights. Therefore, Rubiso's rights over the vessel prevail since he registered his purchase before Rivera registered his.
1) The plaintiff Fausto Rubiso purchased a pilot boat named Valentina at a public auction on January 23, 1915 and registered the sale with the Collector of Customs on January 27 and in the commercial registry on March 4.
2) The defendant Florentino E. Rivera purchased the same vessel privately from Sy Qui on January 4, 1915 but did not register the sale until March 17 with the Collector of Customs.
3) According to Philippine law, the purchaser who first registers the acquisition of a vessel has superior rights. Therefore, Rubiso's rights over the vessel prevail since he registered his purchase before Rivera registered his.
Significance of registration of transactions affecting vessels Subsequently Bonifacio Gelito sold his share to his copartner
Sy Qui, as attested by the instrument Exhibit A, registered in
G.R. No. L-11407 October 30, 1917 the office of the Collector of Customs and made a part of his FAUSTO RUBISO and BONIFACIO GELITO, plaintiff-appellee, answer; vs. That the Chinaman, the absolute owner of the vessel, sold it FLORENTINO E. RIVERA, defendant-appellant. in turn to the defendant Rivera, according to the public TORRES, J.: instrument, also attached to his answer and that, for the Facts: reason, Rivera took possession of said pilot boat Valentina, as its sole owner. o Counsel for plaintiff (Rubiso) brought suit in the Court of the First Instance of this city and alleged in the complaint: CFI: Ruled in favor of plaintiff. That his clients were the owners of the pilot boat named o Counsel for the defendant appealed and moved for a new trial. This Valentina, which had been in bad condition since the year motion was denied 1914 and, on the date of the complaint, was stranded in the place called Tingloy, of the municipality of Bauan, Batangas; The pilot boat Valentina was twice sold: That the defendant (Florentino E. Rivera) took charge or possession of said vessel without the knowledge or consent 1. The sale of the vessel by Sy Qui to Florentino E. Rivera, on January 4, 1915, was entered in the customs registry only on March 17, of the plaintiff and refused to deliver it to them, under claim 1915, that he was the owner thereof; 2. Sale at public auction to Fausto Rubiso on the 23d of January of That such procedure on the defendant's part caused the the same year, 1915, was recorded in the office of the Collector of plaintiffs to suffer damages, not only because they could not Customs on the 27th of the same month, and in the commercial proceed to repair the vessel, but also because they were registry on the 4th of March, unable to derive profit from the voyages for which said pilot boat was customarily used; o Following; that is, the sale on behalf of the defendant Rivera was prior That the net amount of such uncollected profit was P1,750. to that made at public auction to Rubiso, but the registration of this latter sale was prior by many days to the sale made to the defendant. o Counsel for the defendant entered a general and specific denial of all the facts set forth in the complaint, with the exception of those Issue: Who has a better right over the vessel, the plaintiff or the admitted in the special defense. defendant? That the said pilot boat belonged to the concern named "Gelito and Co.," Bonifacio Gelito being a copartner thereof Held: Fausto Rubiso to the extent of two-thirds. Chinaman Sy Qui, to that of the one-third, of the value of said vessel; Ratio: Customs, who, since May 18, 1909, has been performing the duties of the commercial register in place of this latter official. Article 573 of the Code of Commerce provides, in its first paragraph: In view of said legal provisions, it is undeniable that the defendant Merchant vessels constitute property which may be acquired and Florentino E. Rivera's rights cannot prevail over those acquired by Fausto transferred by any of the means recognized by law. The acquisition of a Rubiso in the ownership of the pilot boat Valentina, inasmuch as, though vessel must be included in a written instrument, which shall not the latter's acquisition of the vessel at public auction, on January 23, 1915, produce any effect with regard to third persons if not recorded in the was subsequent to its purchase by the defendant Rivera, nevertheless said commercial registry. sale at public auction was antecedently recorded in the office of the Collector of Customs, on January 27, and entered in the commercial Pursuant to the above-quoted article, inscription in the commercial registry — an unnecessary proceeding — on March 4th; while the private registry was indispensable, in order that said acquisition might affect, and and voluntary purchase made by Rivera on a prior date was not recorded produce consequences with respect to third persons. in the office of the Collector of Customs until many days afterwards, that is, not until March 17, 1915. However, since the enactment of Act No. 1900, on May 18, 1909, said article of the Code of Commerce was amended, as appears by section 2 of With respect to the rights of the two purchasers, whichever of them first that Act, here below transcribed. registered his acquisition of the vessel is the one entitled to enjoy the protection of the law, which considers him the absolute owner of the Act No. 1900. purchased boat, and this latter to be free of all encumbrance and all claims by strangers for, pursuant to article 582 of the said code, after the bill of The documenting, registering, enrolling, and licensing of vessels in the judicial sale at auction has been executed and recorded in the accordance with the Customs Administrative Act and customs rules and commercial registry, all the other liabilities of the vessel in favor of the regulations shall be deemed to be a registry of vessels within the creditors shall be considered canceled. meaning of the title two of the Code of Commerce, unless otherwise provided in said Customs Administrative Act or in said customs rules The purchaser at public auction, Fausto Rubiso, who was careful to record and regulations, and the Insular Collector of Customs shall perform the his acquisition, opportunely and on a prior date, has, according to the law, duties of commercial register concerning the registering of vessels, as a better right than the defendant Rivera who subsequently recorded his defined in title two of the Code of Commerce. purchase.
The requisite of registration in the registry, of the purchase of a vessel, is
necessary and indispensable in order that the purchaser's rights may be maintained against a claim filed by a third person. Such registration is required both by the Code of Commerce and by Act No. 1900. The amendment solely consisted in charging the Insular Collector of Customs, as at present, with the fulfillment of the duties of the commercial register concerning the registering of vessels; so that the registration of a bill of sale of a vessel shall be made in the office of the insular Collector of