Won v.

Wack Wack Golf & Country Club (L-10122, August 30, 1958)

Facts:

Wack Wack Golf & Country Club (Club) issued Teruyama Membership Certificate No. 201, which was
assigned to Reyes. Subsequently, Reyes transferred said certificate to Won. The latter filed an action
against the Club, alleging that he asked it to register the assignment in his favor and to issue him a new
certificate, but that it had refused. He prays that he be declared the owner of a share of stock of the Club
and that the Club be ordered to issue him a new certificate.

The Club contends that 11 years have passed from the time that Won’s right of action had accrued, to
when the complaint was filed. Thus, the complaint was filed beyond the five-year period fixed in Article
1149 of the Civil Code. The CFI dismissed the complaint.

The certificate in question contains a condition to the effect that no assignment thereof shall be effective
until such assignment is registered in the books of the club, as provided in the By-Laws.

Issue:

Whether or not Won was bound to have the assignment registered within the period under the Civil Code

Held:

No. From the moment the certificate was assigned to Won, he had the right to have the assignment
registered. However, it would not follow that said right should be exercised immediately or within a
definite period. The existence of a right is one thing, and the duration of said right is another.

The Club believes that Won was compelled immediately to register his assignment. Such compulsion is for
his benefit, because it is only after registration that the transfer would be binding against the Club. But
Won’s right was violated only when his action was filed. He could not have asserted any cause of action
against the Club before that. It was only then that the Statute of Limitations started running.