Case Digest: Rubiso vs. Rivera, 37 Phil 72, G.R. No. L-11407

Rubiso vs. Rivera, 37 Phil 72, G.R. No. L-11407, October 30, 1917

Subject: Transportation Law

FACTS

The counsel of plaintiff brought a suit alleging that his clients were the owners of the pilot boat named Valentine, which has been in bad condition and on the date of the complaint, was stranded in the place called Tingly, of the municipality of Battings. The defendant Rivera took charge or took possession of the said boat without the knowledge or consent of the plaintiff and refused to deliver it to them, under the claim that he was the owner thereof. The refusal on the part of the defendant has caused the plaintiff damages because they were unable to derive profit from the voyages for which the said pilot boat was customarily used. The defendant, on the other hand, alleged that they purchased the subject pilot boat. The plaintiff alleged that the sale on behalf of the defendant Rivera was prior to that made at public auction to Rubio, but the registration of this latter sale was prior to the sale made to the defendant.

 ISSUE

Whether or not, the plaintiff still has the better right over the subject vessel. 

RULING

Yes, the plaintiff has better right over the subject vessel. 

Article 573 of the Code of Commerce provides that merchant vessels constitute property that may be acquired and transferred by any of the means recognized by law. The acquisition of a vessel must be included in a written instrument, which shall not produce any effect with regard to third persons if not recorded in the commercial registry. 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 third person. 

In this case, it is undeniable that the defendant Florentino E. Rivera's rights cannot prevail over those acquired by Fausto Rubiso in the ownership of the pilot boat Valentina, inasmuch as, though the latter's acquisition of the vessel at public auction, on January 23, 1915, was subsequent to its purchase by the defendant Rivera, nevertheless said sale at public auction was antecedently recorded in the office of the Collector of Customs, on January 27, and entered in the commercial registry — an unnecessary proceeding — on March 4th; while the private and voluntary purchase made by Rivera on a prior date was not recorded in the office of the Collector of Customs until many days afterwards, that is, not until March 17, 1915.