[Type text][Type text][Type text]

Author: ArcellanaRubiso and Gelito v Rivera

Petition: appeal by bill of exceptionsPlaintiffs and appellees: Fausto Rubiso and Bonifacio GelitoDefendant and Appellant: Florentino RiveraPonencia: Torres, J

DOCTRINE: The requisite of registration in the registry of the purchase of a vessel is necessary and indispensable in order that the purchaser's rights are maintained against a claim by third persons. FACTS:1. It was alleged in the complaint that the plaintiffs were the owners of a pilot boat Valentina stranded in Tingloy in Bauan, Batangas and Rivera took charge of the boat, claiming to be the owner, and plaintiffs thus unable to derive profit from it.

2. The boat is owned by "Gelito and Co" with co-partners Gelito for 2/3 share and Sy Qui for 1/3 share. Afterwards Gelito sold his share to Sy Qui.

3. Sy Qui then sold the boat to Rivera for 2500 pesos on Jan 4, 1915 and had it registered in the Bureau of Customs on March 17, 1915.

4. Then to enforce a payment of a certain sum of money, the boat was bought by Rubiso in a public auction on January 23, 1915 and had it registered in the Collector of Customs on January 27, 1915.

5. The complaint asks the defendant for indemnification and the delivery of the boat.

ISSUE:1. WoN Rubiso has a better right to the boat Valentina.

PROVISIONS:Article 573 of the Code of Commerce: Merchant vessels constitute property which may be acquired and transferred by any of the means recognized by law. The acquisition of a vessel must appear in a written instrument, which shall not produce any effect with respect to third persons if not inscribed in the registry of vessels.RULING + RATIO:1. YES. Even though Rivera was the first one who bought the boat, it was Rubiso who registered the vessel first in the office of the Collector of Customs. Rivera only registered the vessel on March 17, 1915 while Rubiso had it registered on January 27, 1915 in the same month of the purchase.

With respect to the rights of the two purchasers, whichever of them who registered the vessel first is the one entitled by the protection of the law, which considers him the absolute owner of the boat and free from encumbrances and claims.

Rivera is now considered a third person who was directly affected by the registration. Ships and vessels, whether moved by steam or sail, partake the nature of real property on account of their value in the world of commerce.

DISPOSITION: Judgment is affirmed with costs against appellant.