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    Dizon Vs Gaborro

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    Maria Danice Angela
    This document summarizes a legal case between Jose P. Dizon and Alfredo G. Gaborro regarding three parcels of land. Dizon took out loans secured by mortgages on the land from two banks. When he defaulted, one bank foreclosed on the mortgage. Prior to this, Dizon and Gaborro met and discussed leasing the land, but instead executed a document on the same day the bank foreclosed. It was disputed whether this document constituted an absolute sale with mortgage assumption or merely an equitable mortgage as security for repayment of sums Gaborro paid to the banks. The court ultimately found the agreement to be a hybrid contract under the Civil Code, giving Gaborro possession until Dizon could reimburse amounts

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    Dizon Vs Gaborro

    Uploaded by

    Maria Danice Angela
    310 views2 pages
    This document summarizes a legal case between Jose P. Dizon and Alfredo G. Gaborro regarding three parcels of land. Dizon took out loans secured by mortgages on the land from two banks. When he defaulted, one bank foreclosed on the mortgage. Prior to this, Dizon and Gaborro met and discussed leasing the land, but instead executed a document on the same day the bank foreclosed. It was disputed whether this document constituted an absolute sale with mortgage assumption or merely an equitable mortgage as security for repayment of sums Gaborro paid to the banks. The court ultimately found the agreement to be a hybrid contract under the Civil Code, giving Gaborro possession until Dizon could reimburse amounts

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    Dizon vs Gaborro

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    This document summarizes a legal case between Jose P. Dizon and Alfredo G. Gaborro regarding three parcels of land. Dizon took out loans secured by mortgages on the land from two banks. When he defaulted, one bank foreclosed on the mortgage. Prior to this, Dizon and Gaborro met and discussed leasing the land, but instead executed a document on the same day the bank foreclosed. It was disputed whether this document constituted an absolute sale with mortgage assumption or merely an equitable mortgage as security for repayment of sums Gaborro paid to the banks. The court ultimately found the agreement to be a hybrid contract under the Civil Code, giving Gaborro possession until Dizon could reimburse amounts

    Copyright:

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

    Dizon Vs Gaborro

    Uploaded by

    Maria Danice Angela
    This document summarizes a legal case between Jose P. Dizon and Alfredo G. Gaborro regarding three parcels of land. Dizon took out loans secured by mortgages on the land from two banks. When he defaulted, one bank foreclosed on the mortgage. Prior to this, Dizon and Gaborro met and discussed leasing the land, but instead executed a document on the same day the bank foreclosed. It was disputed whether this document constituted an absolute sale with mortgage assumption or merely an equitable mortgage as security for repayment of sums Gaborro paid to the banks. The court ultimately found the agreement to be a hybrid contract under the Civil Code, giving Gaborro possession until Dizon could reimburse amounts

    Copyright:

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

    JOSE P. DIZON, petitioner, vs.ALFREDO G.

    GABORRO (Substituted by PACITA DE


    GUZMAN GABORRO as Judicial Administratrix of the Estate of Alfredo G.
    Gaborro) and the DEVELOPMENT BANK OF THE PHILIPPINES, respondents.

    Facts: Petitioner Jose P. Dizon was the owner of the three (3) parcels of land. He
    constituted a first mortgage lien in favor of the Develop. ment Bank of the Philippines in
    order to secure a loan in the sum of P38,000.00 trial a second mortgage lien in favor of the
    Philippine National Bank to cure his indebtedness to said bank in the amount of
    P93,831.91.Petitioner Dizon having defaulted in the payment of his debt, the Development
    Bank of the Philippines foreclosed the mortgage extrajudicially.

    Sometime prior to October 6, 1959 Alfredo G. Gaborro trial Jose P. Dizon met. Gaborro
    became interested in the lands of Dizon. Dizon originally intended to lease to Gaborro the
    property which had been lying idle for some time. But as the mortgage was already
    foreclosed by the DPB trial the bank in fact purchased the lands at the foreclosure sale on
    May 26, 1959, they abandoned the projected lease.

    Dizon and Alfredo Gaborro. on the same day, October 6, 1959, constitute in truth and in fact
    an absolute sale of the three parcels of land therein described or merely an equitable
    mortgage or conveyance thereof by way of security for reimbursement or repayment by
    petitioner Jose P. Dizon of any and all sums which may have been paid to the Development
    Bank of the Philippines and the Philippine National Bank by Alfredo G. Gaborro

    Said documents were executed by the parties and the payments were made by Gaborro for
    the debt of Dizon to said banks after the Development Bank of the Philippines had
    foreclosed the mortgage executed by Dizon and during the period of redemption after the
    foreclosure sale of the mortgaged property to said creditor bank.

    Gaborros contention; Deed of Sale with Assumption of Mortgage trial Option to Purchase
    Real Estate

    Dizon’s contention: merely an equitable mortgage or conveyance thereof by way of


    security for reimbursement, refund or repayment by petitioner Jose P. Dizon

    Issue: whether or not the deed was of a Deed of Sale with Assumption of Mortgage', trial
    Option to Purchase Real Estate or merely an equitable mortgage or conveyance thereof by
    way of security for reimbursement, refund or repayment by petitioner Jose P. Dizon?

    Held: In the light of the foreclosure proceedings and sale of the properties, a legal point of
    primary importance here, as well as other relevant facts and circumstances, We agree with
    the findings of the trial and appellate courts that the true intention of the parties is that
    respondent Gaborro would assume and pay the indebtedness of petitioner Dizon to DBP
    and PNB, and in consideration therefor, respondent Gaborro was given the possession, the
    enjoyment and use of the lands until petitioner can reimburse fully the respondent the
    amounts paid by the latter to DBP and PNB, to accomplish the following ends: (a) payment
    of the bank obligations; (b) make the lands productive for the benefit of the possessor,
    respondent Gaborro, (c) assure the return of the land to the original owner, petitioner
    Dizon, thus rendering equity and fairness to all parties concerned.

    In view of all these considerations, the law and Jurisprudence, and the facts established. We
    find that the agreement between petitioner Dizon and respondent Gaborro is one of those
    inanimate contracts under Art. 1307 of the New Civil Code whereby petitioner and
    respondent agreed "to give and to do" certain rights and obligations respecting the lands
    and the mortgage debts of petitioner which would be acceptable to the bank. but partaking
    of the nature of the antichresis insofar as the principal parties, petitioner Dizon and
    respondent Gaborro, are concerned.

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