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    Rivera v. People's Bank & Trust Co.

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    June Vincent Ferrer III
    The Supreme Court upheld the validity of the survivorship agreement between Edgar Stephenson and Ana Rivera regarding a joint bank account. It found the agreement was an aleatory contract supported by lawful consideration since either could withdraw funds during their lives, and the balance would transfer to the survivor upon death. While survivorship agreements are not expressly authorized in the Civil Code, they are allowed under the law on aleatory contracts. The Court ruled the agreement was not a mere power of attorney or donation mortis causa, so it had legal effect and Ana was entitled to the remaining account balance as the survivor.

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    Rivera v. People's Bank & Trust Co.

    Uploaded by

    June Vincent Ferrer III
    147 views2 pages
    The Supreme Court upheld the validity of the survivorship agreement between Edgar Stephenson and Ana Rivera regarding a joint bank account. It found the agreement was an aleatory contract supported by lawful consideration since either could withdraw funds during their lives, and the balance would transfer to the survivor upon death. While survivorship agreements are not expressly authorized in the Civil Code, they are allowed under the law on aleatory contracts. The Court ruled the agreement was not a mere power of attorney or donation mortis causa, so it had legal effect and Ana was entitled to the remaining account balance as the survivor.

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    Rivera v. People’s Bank & Trust Co.

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    The Supreme Court upheld the validity of the survivorship agreement between Edgar Stephenson and Ana Rivera regarding a joint bank account. It found the agreement was an aleatory contract supported by lawful consideration since either could withdraw funds during their lives, and the balance would transfer to the survivor upon death. While survivorship agreements are not expressly authorized in the Civil Code, they are allowed under the law on aleatory contracts. The Court ruled the agreement was not a mere power of attorney or donation mortis causa, so it had legal effect and Ana was entitled to the remaining account balance as the survivor.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    147 views2 pages

    Rivera v. People's Bank & Trust Co.

    Uploaded by

    June Vincent Ferrer III
    The Supreme Court upheld the validity of the survivorship agreement between Edgar Stephenson and Ana Rivera regarding a joint bank account. It found the agreement was an aleatory contract supported by lawful consideration since either could withdraw funds during their lives, and the balance would transfer to the survivor upon death. While survivorship agreements are not expressly authorized in the Civil Code, they are allowed under the law on aleatory contracts. The Court ruled the agreement was not a mere power of attorney or donation mortis causa, so it had legal effect and Ana was entitled to the remaining account balance as the survivor.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Rivera v. People’s Bank & Trust Co.

    73 Phil 546, April 17, 1942


    J. Ozaeta

    FACTS

     Ana Rivera was Edgar Stephenson’s housekeeper


    o She served him for 19 years without actually receiving salary from him

     One day, Stephenson open an account in his name with People’s Bank

     2 years later, a survivorship agreement was executed


    o Stephenson’s account was then transferred to the name of “Edgar Stephenson
    and/or Ana Rivera”
    o His account had a balance of P2,072

     The survivorship agreement provided that:


    o The money shall be the property of Stephenson and Ana as joint tenants
    o During their joint lives, the money is payable to and collectible by either of them
    o After one of them dies, the survivor shall be the sole owner of the balance

     Years later, Edgar died


    o At the time of his death, Ana held the deposit book for the account
    o It had a balance of P701.43

     Ana claimed the balance


    o However, the bank refused to pay her
    o The bank’s lawyers doubted the validity of the survivorship agreement

     Thus, Ana instituted an action against the bank

     Minnie Stephenson intervened


    o Administratrix of Edgar’s estate
    o Claimed that the money is Edgar’s exclusive property

     CFI held that the Civil Code contains no provisions sanctioning a survivorship agreement
    o Viewed from its effect during the lives of the parties, it was a mere power of
    attorney authorizing Ana to withdraw the deposit
     Such power terminated upon the death of the principal
    o Viewed from its effect after the death of either of the parties, it was a donation
    mortis causa, with reference to the balance
     However, it was not executed with the formalities of a will
     Hence, it has no legal effect
    ISSUES AND HELD

    1. W/N the survivorship agreement was valid – YES

     Stephenson was not the exclusive owner of the bank account


    o He transferred the account to the name of himself and/or Ana Rivera
    o They executed a survivorship agreement even though there was no relation of
    kinship between them

     Certificate of Deposit showed that:


    o The funds belonged to Stephenson and Ana
    o They were the joint owners
    o Either of them could withdraw any part or the whole of said account during the
    lifetime of both
    o The balance, upon the death of either, belonged to the survivor

     The survivorship agreement is valid


    o It is an aleatory contract supported by a lawful consideration
    o It is a mutual agreement of the joint depositors permitting either of them to
    withdraw the whole deposit during their lifetime, and transferring the balance to
    the survivor upon the death of one of them.
    o In fact, survivorship agreements are covered by Art. 1790, Civil Code
     “By aleatory contract one of the parties binds himself, or both reciprocally
    bind themselves, to give or to do something as an equivalent for that
    which the other party is to give or do in case of the occurrence of an
    event which is uncertain or will happen at an indeterminate time.”

     A bank may be created so that two persons shall be joint owners during their mutual
    lives and the survivor shall take the whole on the death of the other

     Although the survivorship agreement is not contrary to law, its operation or effect may be
    violative of the law
    o If it is shown that the agreement was a mere cloak to hide an inofficious
    donation, to transfer property in fraud of creditors, or to defeat the legitime of a
    forced heir, it may be assailed and annulled

     In this case, nothing has been imputed and established against the survivorship
    agreement

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