G.R. No.

162365 January 15, 2014

ROBERTO R. DAVID, Pettoner, !". ED#ARDO $. DAVID, Re"%on&ent.
'A$T()
Respondent Eduardo initiated this replevin suit against, his frst cousin and former
business partner, to recover the possession of one unit of International CO 9670
ruc! ractor and "i#$ed railer%
It appears that on &ul' 7, (99), Eduardo and his brother Ed*in C% +avid ,Ed*in-,
acting on their o*n and in behalf of their co#heirs, sold their inherited properties to
Roberto, specifcall'. ,a- a parcel of land *ith an area of (,/0( s1uare meters,
together *ith all the improvements e2isting thereon, located in $aguio Cit' and ,b-
t*o units International CO 9670 ruc! ractor *ith t*o "i#$ed railers% 3 deed of
sale *ith assumption of mortgage ,deed of sale- embodied the terms of their
agreement, stipulating that the consideration for the sale *as 46,000,000%00, of
*hich 4/,000,000 *as to be paid to Eduardo and Ed*in, and the remaining
45,000,000%00 to be paid to +evelopment $an! of the 4hilippines ,+$4- in $aguio
Cit' to settle the outstanding obligation secured b' a mortgage on such properties%
he parties further agreed to give Eduardo and Ed*in the right to repurchase the
properties *ithin a period of three 'ears from the e2ecution of the deed of sale
based on the purchase price agreed upon, plus (/6 interest per annum%
In 3pril (997, Roberto and Ed*in e2ecuted a memorandum of agreement ,"O3-)
*ith the 7pouses "ar1ue8 and 7oledad 9o ,7pouses 9o-, b' *hich the' agreed to
sell the $aguio Cit' lot to the latter for a consideration of 4(0,000,000%00% he "O3
stipulated that :in order to save pa'ment of high and multiple ta2es considering
that the 2 2 2 sub;ect matter of this sale is mortgaged *ith +$4, $aguio Cit', and
sold <to Roberto=, Ed*in *ill e2ecute the necessar' +eed of 3bsolute 7ale in favor of
<the 7pouses 9o=, in lieu of <Roberto=%: he 7pouses 9o then deposited the amount
of 4(0,000,000%00 to Roberto>s account%
3fter the e2ecution of the "O3, Roberto gave Eduardo 4/,?00,000%00 and returned
to him one of the truc! tractors and trailers sub;ect of the deed of sale% Eduardo
demanded for the return of the other truc! tractor and trailer, but Roberto refused
to heed the demand%
hus, Eduardo initiated this replevin suit against Roberto, alleging that he *as
e2ercising the right to repurchase under the deed of sale@ and that he *as entitled
to the possession of the other motor vehicle and trailer%
In his ans*er, Roberto denied that Eduardo could repurchase the properties in
1uestion@ and insisted that the "O3 had e2tinguished their deed of sale b'
novation%
I((#E)
Ahether or not Eduard has the right to repurchase%
*E+D)
Bes%
3 sale *ith right to repurchase is governed b' 3rticle (60( of the Civil Code, *hich
provides that. :Conventional redemption shall take place when the vendor reserves
the right to repurchase the thing sold, with the obligation to comply with the
provisions of Article 1616 and other stipulations which may have been agreed
upon%: Conformabl' *ith 3rticle (6(6,(5 the seller given the right to repurchase
ma' e2ercise his right of redemption b' pa'ing the bu'er. ,a- the price of the sale,
,b- the e2penses of the contract, ,c- legitimate pa'ments made b' reason of the
sale, and ,d- the necessar' and useful e2penses made on the thing sold%
he deed of sale entered into b' Eduardo and Roberto contained the follo*ing
stipulation on the right to repurchase%
he C3 and the RC both found and held that Eduardo had complied *ith the
conditions stipulated in the deed of sale and prescribed b' 3rticle (6(6 of the Civil
Code%