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Central Visayas Finance Corp. v. Spouses Adlawan G.R. No. 212674 25 March 2019

Central Visayas Finance Corp. obtained a loan from spouses Adlawan secured by a chattel mortgage over a dump truck. When the spouses failed to pay, Central Visayas filed an action for replevin to recover possession of the truck, which it was granted. Central Visayas then foreclosed on the mortgage and sold the truck, but sought to recover the unpaid balance through a deficiency judgment. The court ruled the replevin action barred the subsequent deficiency judgment action, as Central Visayas could have sought deficiency in the first action and did not, making the first judgment conclusive between the parties.

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231 views

Central Visayas Finance Corp. v. Spouses Adlawan G.R. No. 212674 25 March 2019

Central Visayas Finance Corp. obtained a loan from spouses Adlawan secured by a chattel mortgage over a dump truck. When the spouses failed to pay, Central Visayas filed an action for replevin to recover possession of the truck, which it was granted. Central Visayas then foreclosed on the mortgage and sold the truck, but sought to recover the unpaid balance through a deficiency judgment. The court ruled the replevin action barred the subsequent deficiency judgment action, as Central Visayas could have sought deficiency in the first action and did not, making the first judgment conclusive between the parties.

Uploaded by

Kristel Alyssa Maranan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Central Visayas Finance Corp. v.

Spouses Adlawan
G.R. No. 212674
25 March 2019

FACTS:

Spouses Eliezer and Leila Adlawan obtained a Php 3,669,685.00 loan from Central
Visayas Finance Corporation, covered by a Chattel Mortgage over a dump truck, which loan they
failed to pay. Resultantly, Central Visayas filed an action for replevin against them with the trial
court, which ruled in favor of Central Visayas and ordered the spouses to deliver possession of
the dump truck to the former. Then, Central Visayas foreclosed on the chattel mortgage and
caused the sale at public auction of the dump truck, which was then sold to it as the highest
bidder for Php 500,000.00. Central Visayas, thereafter, commenced another suit against spouses
Adlawan for deficiency judgment relative to the latter’s supposed unpaid balance on their loan,
which it claimed to be at Php 2,104,604.97, less the value of dump truck with damages. The trial
court, as affirmed by the appellate court, ruled that the action is already barred by res judicata;
hence, the same was dismissed.

ISSUE:

Whether the judgment in the action for replevin filed by Central Visayas against spouses
Adlwan bars the subsequent action for deficiency judgment involving the same parties

RULING:

Yes, the judgment in the action for replevin filed by Central Visayas against spouses
Adlwan bars the subsequent action for deficiency judgment involving the same parties.

Replevin, broadly understood, is both a form of principal remedy and of a provisional


relief. It may refer either to the action itself, i.e., to regain the possession of personal chattels
being wrongfully detained from the plaintiff by another, or to the provisional remedy that would
allow the plaintiff to retain the thing during the pendency of the action and hold it pendente lite.
The action is primarily possessory in nature and generally determines nothing more than the right
of possession. Replevin is so usually described as a mixed action, being partly in rem and partly
in personam – in rem insofar as the recovery of specific property is concerned, and in personam
as regards to damages involved. As an action in rem, the gist of the replevin action is the right of
the plaintiff to obtain possession of specific personal property by reason of his being the owner
or of his having a special interest therein.

By failing to seek a deficiency judgment in the action for replevin after its case for
recovery of possession was resolved, petitioner is barred from instituting another action for such
deficiency. Pursuant to Section 47, Rule 39 of the 1997 Rules of Civil Procedure, on the effect of
judgments or final orders, the judgment in the action for replevin is, with respect to the matter
directly adjudged or as to any other matter that could have been raised in relation thereto,
conclusive between the petitioner and respondents.

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