Dalton v. FGR Realty
Dalton v. FGR Realty
Dalton v. FGR Realty
FGR Realty
GR No. 172577, 2011-01-19
January 19, 2011
FACTS:
Flora R. Dayrit (Dayrit) owned a... parcel of land... in Cebu City.
Petitioner Soledad Dalton (Dalton), Clemente Sasam, Romulo Villalonga, Miguela Villarente, Aniceta Fuentes,
Perla Pormento, Bonifacio Cabajar,... Carmencita Yuson, Angel Ponce, Pedro Regudo, Pedro Quebedo, Mary
Cabanlit, Marciana Encabo and Dolores Lim (Sasam, et al.) leased portions of the property.
Dayrit sold the property to respondent FGR Realty and Development Corporation
Dayrit and FGR stopped accepting rental payments because they wanted to terminate the lease agreements
with Dalton and Sasam, et al.
Dalton and Sasam, et al. consigned the rental payments with the RTC.
They failed to notify Dayrit and FGR about the consignation.
Dayrit and FGR withdrew the rental payments. In their motions, Dayrit and FGR reserved the right to question
the validity of the consignation.
Dayrit, FGR and Sasam, et al. entered into compromise agreements... they agreed to abandon all claims
against each other. Dalton did not enter into a compromise... agreement with Dayrit and FGR.
ISSUES:
the consignation was void
RULING:
First, in withdrawing the amounts consigned, Dayrit and FGR expressly reserved the right to question the
validity of the consignation.
Second, compliance with the requisites of a valid consignation is mandatory. Failure to comply strictly with any
of the requisites will render the consignation void.
Substantial compliance is not enough.
Articles 1257 and 1258 of the Civil Code state, respectively:
Art. 1257. In order that the consignation of the thing due may release the obligor, it must first be announced to
the persons interested in the fulfillment of the obligation.
The consignation shall be ineffectual if it is not made strictly in consonance with the provisions which regulate
payment.
Art. 1258. Consignation shall be made by depositing the things due at the disposal of judicial authority, before
whom the tender of payment shall be proved, in a proper case, and the announcement of the consignation in
other cases.
The consignation having been made, the interested parties shall also be notified thereof.
Principles:
Art. 1257. In order that the consignation of the thing due may release the obligor, it must first be announced to
the persons interested in the fulfillment of the obligation.
Art. 1258. Consignation shall be made by depositing the things due at the disposal of judicial authority, before
whom the tender of payment shall be proved, in a proper case, and the announcement of the consignation in
other cases.