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Banking Trust Dispute Ruling

This case involves disputes over the ownership of several properties that were sold by Banco Filipino Savings and Mortgage Bank to Tala Realty Services Corporation. Banco Filipino claims that an implied trust existed whereby Tala was to hold the properties for Banco Filipino. However, the Supreme Court ruled that no implied trust could be enforced because the arrangement was an attempt to circumvent the statutory limit on banks' real estate holdings, which Banco Filipino had already reached. While the sale and lease of the properties to Tala were valid, the Court would not enforce the alleged implied trust since its purpose was contrary to law and in violation of banking regulations.

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174 views2 pages

Banking Trust Dispute Ruling

This case involves disputes over the ownership of several properties that were sold by Banco Filipino Savings and Mortgage Bank to Tala Realty Services Corporation. Banco Filipino claims that an implied trust existed whereby Tala was to hold the properties for Banco Filipino. However, the Supreme Court ruled that no implied trust could be enforced because the arrangement was an attempt to circumvent the statutory limit on banks' real estate holdings, which Banco Filipino had already reached. While the sale and lease of the properties to Tala were valid, the Court would not enforce the alleged implied trust since its purpose was contrary to law and in violation of banking regulations.

Uploaded by

nath
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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G.R. No.

158866 September 9, 2013


BANCO FILIPINO SAVINGS AND MORTGAGE BANK, Petitioner,
vs.
TALA REALTY SERVICES CORPORATION, PEDRO B. AGUIRRE, REMEDIOS A. DU-
PASQUIER, PILAR D. ONGKING, ELIZABETH H. PALMA, DOLLY W. LIM RUBEN-
CITO M. DEL MUNDO, ADD INTERNATIONAL SERVICES, INCORPORATED, and
NANCY L. TY, Respondents.

G.R. No. 181933


NANCY L. TY, Petitioner,
vs.
BANCO FILIPINO SAVINGS AND MORTGAGE BANK, Respondent.

G.R. No. 187551


BANCO FILIPINO SAVINGS AND MORTGAGE BANK, Petitioner,
vs.
COURT OF APPEALS, TALA REALTY SERVICES CORPORATION, NANCY L. TY,
PEDRO B. AGUIRRE, REMEDIOS A. DUPASQUIER, PILAR D. ONGKING, ELIZA-
BETH H. PALMA, DOLLY W. LIM, RUBENCITO M. DEL MUNDO, and ADD INTERNA-
TIONAL SERVICES, INCORPORATED, Respondents.
PERLAS-BERNABE, J.:

Topic: Implied Trust (Is this even Merc?)

Doctrine:
• Where the purchase is made in violation of an existing statute and in evasion of its
express provision, no trust can result in favor of the party who is guilty of the fraud.

Facts:
• In the course of the expansion of its operations, Banco Filipino found the necessity of
acquiring real properties in order to open new branch sites. Because of the 50% capital
assests limit on banks’ real estate investments it decided to “warehouse several of its
properties.
• Upon her behest and initiative, Nancy, together with Tomas B.Aguirre (Tomas) and his
brother Pedro B. Aguirre (Pedro) – all major stockholders of Banco Filipino – organized
and incorporated Tala Realty Services Corporation (Tala Realty) to purchase and hold
the real properties owned by Banco Filipino in trust
• Banco Filipino entered into and, thereafter, proceeded to implement a certain trust
agreement (trust agreement) with Tala Realty by selling to the latter some of its proper-
ties. In turn, Tala Realty leased these properties to Banco Filipino.
• However, Tala Realty repudiated the trust agreement, asserted ownership and claimed
full title over the properties, prompting Banco Filipino to institute a total of 17 complaints
for the reconveyance of the said properties

Issue:
• WoN the reconveyance complaints filed by Banco Filipino before the courts a quo can
be allowed to prosper. -NO.

Ruling:
• Where the purchase is made in violation of an existing statute and in evasion of its
express provision, no trust can result in favor of the party who is guilty of the fraud.
• The Bank cannot use the defense of nor seek enforcement of its alleged implied trust
with Tala since its purpose was contrary to law.
- As admitted by the Bank, it "warehoused" its branch site holdings to Tala to enable
it to pursue its expansion program and purchase new branch sites including its main
branch in Makati, and at the same time avoid the real property holdings limit under
Sections 25(a)and 34 of the General Banking Act which it had already reached.
- This arrangement which the Bank claims to be an implied trust is contrary to law.
Thus, while we find the sale and lease of the subject property genuine and binding
upon the parties, we cannot enforce the implied trust even assuming the parties in-
tended to create it.

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