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PHILIPPINE NATIONAL BANK v. CA

This case has been cited 4 times or more.

2007-02-09
CALLEJO, SR., J.
Petitioner's argument on subrogation is misplaced. The Court agrees with respondent PCIB's comment that petitioner failed to make a distinction between legal and conventional subrogation. Subrogation is the transfer of all the rights of the creditor to a third person, who substitutes him in all his rights.[28] It may either be legal or conventional. Legal subrogation is that which takes place without agreement but by operation of law because of certain acts.[29] Instances of legal subrogation are those provided in Article 1302[30] of the Civil Code. Conventional subrogation, on the other hand, is that which takes place by agreement of the parties.[31] Thus, petitioner's acquiescence is not necessary for subrogation to take place because the instant case is one of legal subrogation that occurs by operation of law, and without need of the debtor's knowledge.
2006-01-31
AZCUNA, J.
The Court is aware that Urbino seeks to enforce a maritime lien and, because of its nature, it is equivalent to an attachment from the time of its existence.[16] Nevertheless, despite his lien's constructive attachment, Urbino still cannot claim an advantage as his lien only came about after the warrant of seizure and detention was issued and implemented. The Salvage Agreement, upon which Urbino based his lien, was entered into on June 8, 1989. The warrants of seizure and detention, on the other hand, were issued on January 19 and 20, 1989. And to remove further doubts that the forfeiture case takes precedence over the RTC of Manila case, it should be noted that forfeiture retroacts to the date of the commission of the offense, in this case the day the vessel entered the country.[17] A maritime lien, in contrast, relates back to the period when it first attached,[18] in this case the earliest retroactive date can only be the date of the Salvage Agreement. Thus, when the vessel and its cargo are ordered forfeited, the effect will retroact to the moment the vessel entered Philippine waters.
2005-08-22
TINGA, J.
The first argument is absurd. Although POLIAND or its predecessors-in-interest are not sailors entitled to wages, they can still make a claim for the advances spent for the salary and wages of the crew under the principle of legal subrogation. As explained in Philippine National Bank v. Court of Appeals,[63] a third person who satisfies the obligation to an original maritime lienor may claim from the debtor because the third person is subrogated to the rights of the maritime lienor over the vessel. The Court explained as follows:From the foregoing, it is clear that the amount used for the repair of the vessel M/V "Asean Liberty" was advanced by Citibank and was utilized for the purpose of paying off the original maritime lienor, Hong Kong United Dockyards, Ltd. As a person not interested in the fulfillment of the obligation between PISC and Hong Kong United Dockyards, Ltd., Citibank was subrogated to the rights of Hong Kong United Dockyards, Ltd. as a maritime lienor over the vessel, by virtue of Article 1302, par. 2 of the New Civil Code. By definition, subrogation is the transfer of all the rights of the creditor to a third person, who substitutes him in all his rights. Considering that Citibank paid off the debt of PISC to Hong Kong United Dockyards, Ltd. it became the transferee of all the rights of Hong Kong Dockyards, Ltd. as against PISC, including the maritime lien over the vessel M/V "Asian Liberty."[64]
2003-09-23
AUSTRIA-MARTINEZ, J.
Subrogation is the transfer of all the rights of the creditor to a third person, who substitutes him in all his rights.[19] It may either be legal or conventional. Legal subrogation is that which takes place without agreement but by operation of law because of certain acts.[20] Instances of legal subrogation are those provided in Article 1302 of the Civil Code.  Conventional subrogation, on the other hand, is that which takes place by agreement of the parties.[21]