Topic: Immovable and Movable Property Ratio:

Case Title: Philippine Refining Co. vs. Jarque Vessels are considered personal property
under the civil law and the common law, though
Date: March 25, 1935 a peculliar kind. Hence, they are subject to
Ponente: J. Malcolm
mortgage agreeably to the provisions of the
Chattel Mortgage Law. Therefore, mortgage on
Legal Doctrine: a vessel is in nature a chattel mortgage. The
only difference between a chattel mortgage of a
Vessels are considered personal property
vessel and a chattel mortgage of other
under the civil law and the common law. Vessels
personalty is that it is not now necessary for a
are subject to mortgage agreeably to the
chattel mortgage of a vessel to be noted in the
provisions of the Chattel Mortgage Law.
registry of the register of deeds, but it is
Facts: essential that a record of documents affecting
the title to a vessel be entered in the record of
Philippine Refining Co., Inc., and Francisco the Collector of Customs at the port of entry.
Jarque executed three mortgages on the motor Otherwise a mortgage on a vessel is
vessels Pandan and Zaragoza. These
documents were recorded in the record of generally like other chattel mortgages as to its
transfers and encumbrances of vessels for the requisites and validity.
port of Cebu and each was therein denominated
a "chattel mortgage". The first two mortgages The Chattel Mortgage Law requires an affidavit
did not contain an affidavit of good faith, while of good faith appended to the mortgage and
the third mortgage which was between Jarque recorded therewith. The absence of the
and M.N. Brink had but this mortgage was not affidavit vitiates a mortgage as against creditors
registered in the customs house until May 17,
and subsequent encumbrancers (third parties).
1932, or within the period of thirty days prior to
the commencement of insolvency proceedings
against Francisco Jarque. Also, there was no
disclosure as to the capacity of M.N. Brink to
sign the mortgage. A fourth mortgage was
executed by Jarque and Ramon Aboitiz on the
motorship Zaragoza and was entered in the
chattel mortgage registry of the register of
deeds on May 12, 1932, again within the thirty-
day period before the institution of insolvency
proceedings. A petition for insolvency
declaration was filed with the Court of First
Instance of Cebu on June 2, 1932. The petition
was granted and all properties of Jarque were
assigned in favor of Jose Corominas.

Issue(s):

WON the pettition should be denied on the basis

of fatal defects of the mortgages.

Held: YES, petition denied.