G. R. No. 43824. September 30, 1936

LEOCADIA SALOMON AND SERAPIO LACHICA, PLAINTIFFS AND APPELLANTS, VS. FRANCISCO DANTES, DEFENDANT AND APPELLEE.

Decisions / Signed Resolutions September 30, 1936 ABAD SANTOS, J.:
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ABAD SANTOS, J.:


This action was commenced in the Court of First Instance of Cavite by the filing  of a complaint  by the  appellants against the  appellee for the  recovery of a sum of money. The complaint alleged, among other things, that the appellee borrowed from the appellant Leocadia Salomon the sum of P800 and one hundred cavans of palay as  evidenced by a certain document which  was annexed to the  complaint, marked as Exhibit  A, and made a part thereof. It was further alleged that  although said document Exhibit A was entitled Escritura de Hipoteca, it constituted  a mere contract  of loan as the same was not recorded on account of certain  defects.   The appellee demurred to  the complaint on the ground that the court had no jurisdiction  over the subject  of the action.   The court below sustained the demurrer  and dismissed the complaint on the ground of lack of jurisdiction.  From the order thus entered this  appeal was taken.

In sustaining the demurrer, the court held that a contract of mortgage, even if unrecorded, is valid and binding as between the parties  thereto  and that registration is  only necessary for the validity of the mortgage as against third parties.  The court further held that as the property involved in the contract Exhibit A is located in the Province of Zambales, the Court of First Instance of Cavite had no jurisdiction in the premises.

In disposing of this appeal, it is not necessary for us to pass on  the question of whether the document Exhibit A has  created a valid mortgage between the parties thereto. Even granting, without deciding, that it did  create such a valid mortgage, the mortgagee, that is the appellant Leocadia Salomon, was not precluded from maintaining a personal action for the  recovery of the debt covered by the mortgage.   (Hijos de I. de la  Rama vs. Sajo, 45 Phil., 703.)

The  order appealed from is reversed, and  the case  will be remanded to the court below for further proceedings in conformity with this opinion.  So ordered.

Avanceña, C.  J., Villa-Real, Imperial, Diaz, and Laurel, JJ., concur.

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