TITLE: Garcia vs. Thio
7. The CA ruled that no contract of loan existed
CASE NUMBER: G.R. No. 154878.
DATE: March 16, 2007
AUTHOR OF THE DIGEST: Carissa Bonifacio
DOCTRINE: Delivery is the act by which the res or
substance thereof is placed within the actual or
constructive possession or control of another.
FACTS:
1. Rica Thio had received two cross checks, which
were payable to Marilou Santiago, from Carolyn
Garcia in the amounts of $ 100,000 and Php
500.000.
2. Garcia would then receive checks from Thio on a
monthly basis. When the loans fell due, Thio had
failed to pay the principle amounts of the loan.
3. Garcia filed a complaint for sum of money with
interest against Thio, alleging that Thio had
borrowed $ 100,000 from her and had borrowed
another Php 500.000.
4. Both loans were agreed to have a monthly interest
of 3% and 4%, respectfully.
5. Thio denies that she contracted two loans from
Garcia as it was Santiago who borrowed from
Garcia. Thio further claims that she was asked, by
Garcia, to give the crossed checks to Santiago.
6. The RTC ruled in favor of Garcia.
between the Garcia and Thio as Garcia failed to
prove Thios act of borrowing money from her.
ISSUE: W/N Thio is liable for the interests of the unpaid
loans.
HELD: Yes. Although Thio did not physically receive
the proceeds of the checks, the instruments were
placed in her control and possession under an
arrangement whereby she actually re-lent the amounts
to Santiago. It is upon delivery of the object of the loan,
the debtor acquires ownership of such money or loan
proceeds and is bound to pay the creditor an equal
amount. Thio had received, possession, and control of
the checks, thus had the choice to forward them to
Santiago, retain them, or return them to Garcia.
Therefore, Thio is liable for the payment of the interest
of the loan.
NOTES:
The decision is further supported by the following
1. Garcia did not personally know Santiago
2. A friend of both parties testified that Thio planned for
Garcia to lend her money.
3. Thio admitted to have issued checks to cover the
monthly interest.
4. Thio was listed to as one of Siantiagos creditos.