-On December 4, 1996, petitioner PCI LEASING and respondent GIRAFFE entered into a

Lease Agreement, whereby the former leased out to the latter one (1) set of Silicon High Impact
Graphics and accessories worth P3,900,00.00 and one (1) unit of Oxberry Cinescan 6400-10 worth
P6,500,000.00.

- A year into the life of the Lease Agreement, GIRAFFE defaulted in its monthly rental-
payment obligations. And following a three-month default, PCI LEASING addressed a formal pay-or-
surrender-equipment type of demand letter dated February 24, 1998 to GIRAFFE. The demand went
unheeded.

PCI Leasing instituted a case against GIRAFFE. PCI prayed for the issuance of a writ of
replevin for the recovery of the leased property- Upon PCI LEASINGs posting of a replevin bond, the
trial court issued a writ of replevin, paving the way for PCI LEASING to secure the seizure and
delivery of the equipment covered by the basic lease agreement. Instead of an answer, GIRAFFE
filed a Motion to Dismiss,arguing that the seizure of the two (2) leased equipment stripped