Roman vs.

Asia Banking
Corp.
46 PHIL. 705 (1922)
Justice Ostrand

Negotiable Instruments of
Title - Liability of Indorser

AGGABAO 2A
Quedan
warehouse receipts

Bultos
lumps Terms to
remember
Por Orden
by order

A la Orden
to the order
 INSOLVENCY OF
UMBERTO DE POLI
created the lien on 576 bales of tobacco
that were being contested for by the
two parties, Roman and Asia Banking 
CASE
BACKGROUND
FACTS

EXHIBIT A EXHIBIT B AND C EXHIBIT D

basis of Roman's claim Roman made known her Warehouse receipt issued
consignment of tobacco claims to which Asia Bank by Umberto de Poli
answered
 PREFERENCE ON
VENDOR'S LIEN
the tobacco was transferred to the Asia
Banking Corporation as security for a
loan and that as the transfer neither
fulfilled the requirements of the Civil
Code for a pledge nor constituted a

CFI decision chattel mortgage under Act No. 1508,

the vendor's lien of Felisa Roman
should be accorded preference over it.

Roman's vendor lien is preferred

Issue

w/n the warehouse receipt (Exhibit D)

is negotiable
if the warehouse receipt in question
is negotiable, the vendor's lien of
Felisa Roman cannot prevail against
the rights of the Asia Banking
Corporation as the indorsee of the
receipt.
 YES

EXHIBIT D
Quedan depositados en estos almacenes por
orden del Sr. U. de Poli la cantidad de
quinientos setenta y seis fardos de tabaco en
rama segun marcas detalladas al margen, y
con arreglo a las condiciones siguientes:
DEFECT MERELY CLERICAL
use of por order vs. a la orden 

CONSTRUCTION
U. de Poli was the person authorized to endorse
and deliver the receipts; any other
interpretation would mean that no one had
such power and the clause, as well as the entire
receipts, would be rendered nugatory.

INTENTION
the endorsement in blank of the receipt in
controversy together with its delivery by U. de Poli
Ratio
to the appellant bank took place on the very of the
issuance of the warehouse receipt
SECTION 7
OF THE A non-negotiable receipt shall have plainly placed
upon its face by the warehouseman issuing it

UNIFORM 'non-negotiable,' or 'not negotiable.' In case of the

warehouseman's failure so to do, a holder of the

WAREHOUSE receipt who purchased it for value supposing it to

be negotiable may, at his option, treat such
receipt as imposing upon the warehouseman the
RECEIPTS same liabilities he would have incurred had the
receipt been negotiable.

ACT This section shall not apply, however, to letters,

memoranda, or written acknowledgments of an
informal character.
 SECTION 7 OF WAREHOUSE RECEIPTS
appears to give any warehouse receipt not marked "non-negotiable" or "not
negotiable" practically the same effect as a negotiable receipt provided the holder of
such unmarked receipt acquired it for value supposing it to be negotiable,
circumstances which admittedly exist in the present case.

SECTION 49 
Where a negotiable receipts has been issued for goods, no seller's lien or right of
stoppage in transitu shall defeat the rights of any purchaser for value in good
faith to whom such receipt has been negotiated, whether such negotiation be
prior or subsequent to the notification to the warehouseman who issued such
receipt of the seller's claim to a lien or right of stoppage in transitu. Nor shall the
warehouseman be obliged to deliver or justified in delivering the goods to an
unpaid seller unless the receipt is first surrendered for cancellation.
 DECISION
ASIAN BANKING CORP'S
LIEN PREVAILS OVER
ROMAN'S VENDOR LIEN
We therefore hold that the warehouse
receipts in controversy was negotiable and
that the rights of the endorsee thereof, the
appellant, are superior to the vendor's lien
of the appellee and should be given
preference over the latter.
The order appealed from is therefore
reversed without costs
TOBACCO MONOPOLY

1782 Self sustaining 18th Century 1882

Governor-General José only government can Government profits Monopoly was
Basco y Vargas established buy the tobacco to be were soaring, reaching abolished by Gov. Gen.
the Monopoly brought and made into $3,000,000 in 1881. Primo de Rivera
cigars and cigarettes in
Cagayan, Ilocos, Manila and for export Government abuse and
Marinduque, Nueva Ecija corruption
LA INSULAR CIGAR AND
CIGARETTE FACTORY
gracias