REPUBLIC VS BAGTAS

REPUBLIC VS BAGTAS

G.R. No. L-17474  October 25, 1962

REPUBLIC OF THE PHILIPPINES, plaintiff-appellee, 
JOSE V. BAGTAS, defendant, 
FELICIDAD M. BAGTAS, Administratrix of the Intestate Estate left by the late Jose V. Bagtas, petitioner-appellant.

Nature: The Court of Appeals certified this case to this Court because only questions of law are raised.

Keywords: liability in cases of force majeure, borrowing of 3 bulls and failure to return or purchase, Bureau of Animal Industry, Bagtas, Cagayan

Summary: Bagtas borrowed three bulls from the Bureau of Animal Industry for one year for breeding purposes subject to payment of breeding fee of 10% of book value of the bull. Upon expiration, Bagtas asked for renewal. The renewal was granted only to one bull. Bagtas offered to buy the bulls at its book value less depreciation but the Bureau refused. The Bureau said that Bagtas should either return or buy it at book value. Bagtas proved that he already returned two of the bulls, and the other bull died during a Huk raid, hence, obligation already extinguished. He claims that the contract is a commodatum hence, loss through fortuitous event should be borne by the owner.

PADILLA, J.

Facts: Jose Bagtas borrowed from the Bureau of Animal Industry three bulls for a period of one year for breeding purposes subject to a government charge of breeding fee of 10% of the book value of the books. Upon the expiration of the contract, Bagtas asked for a renewal for another one year, however, the Secretary of Agriculture and Natural Resources approved only the renewal for one bull and other two bulls be returned. Bagtas then wrote a letter to the Director of Animal Industry that he would pay the value of the three bulls with a deduction of yearly depreciation. The Director advised him that the value cannot be depreciated and asked Bagtas to either return the bulls or pay their book value. Bagtas neither paid nor returned the bulls. The Republic then commenced an action against Bagtas ordering him to return the bulls or pay their book value. 

LC: *Trial court: After hearing, the trial Court ruled in favor of the Republic, as such, the Republic moved ex parte for a writ of execution which the court granted. 

INTERVENING FACT: Felicidad Bagtas, the surviving spouse and administrator of Bagtas' estate, returned the two bulls and filed a motion to quash the writ of execution since one bull cannot be returned for it was killed by gunshot during a Huk raid. The Court denied her motion hence, this appeal certified by the Court of Appeals because only questions of law are raised.

Issue:

1.     WON the contract was commodatum

2.     WON Bagtas should be held liable for its loss due to force majeure.

Held:

1.     NO, the contract is not commodatum.

2.     YES, he is liable for the loss.

Ratio: A contract of commodatum is essentially gratuitous. Supreme Court held that Bagtas was liable for the loss of the bull even though it was caused by a fortuitous event. If the contract was one of lease, then the 10% breeding charge is compensation (rent) for the use of the bull and Bagtas, as lessee, is subject to the responsibilities of a possessor. He is also in bad faith because he continued to possess the bull even though the term of the contract has already expired. 

If the contract was one of commodatum, he is still liable because: (1) he kept the bull longer than the period stipulated; and (2) the thing loaned has been delivered with appraisal of its value (10%). No stipulation that in case of loss of the bull due to fortuitous event the late husband of the appellant would be exempt from liability. 

The original period of the loan was from 8 May 1948 to 7 May 1949. The loan of one bull was renewed for another period of one year to end on 8 May 1950. But the appellant kept and used the bull until November 1953 when during a Huk raid, it was killed by stray bullets. Furthermore, when lent and delivered to the deceased husband of the appellant the bulls had each an appraised book value, to with: the Sindhi, at P1,176.46, the Bhagnari at P1,320.56 and the Sahiniwal at P744.46. It was not stipulated that in case of loss of the bull due to fortuitous event the late husband of the appellant would be exempt from liability.

Ruling: ACCORDINGLY, the writ of execution appealed from is set aside, without pronouncement as to costs.