Author: Arcellana

Rubiso and Gelito v Rivera

Petition: appeal by bill of exceptions
Plaintiffs and appellees: Fausto Rubiso and Bonifacio Gelito
Defendant and Appellant: Florentino Rivera
Ponencia: 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.