Enriquez Vs Ranolo
Enriquez Vs Ranolo
Enriquez Vs Ranolo
Issue: Whether or not confusion or merger of rights took place when a creditor
bought the mortgaged land of his debtor, in effect extinguishing the debt?
Held: Yes, the court affirmed the judgment of the trial court. The trial court held
that when the plaintiffs acquired through Francisco Paulino the equity of
Fructuosa Cadiz in the very same lands conveyed to them as mortgagees, a
merger of rights (confusion de derechos) took place which had the effect of
extinguishing the debt of Fructuosa Cadiz in favor of the plaintiffs, under the
provisions of articles 1156 and 1159 of the Civil Code. If that were not true, the
plaintiffs would acquire the legal and equitable title to lands assessed at P28,150
for the sum of P857.31 paid by them to Francisco Paulino without giving
Fructuosa Cadiz or her estate credit for anything, leaving the said estate still
owing the plaintiffs the P30,000, plus interest, for which the lands stood security.
This extinction of the obligation and merger of rights by which the plaintiffs
became owners of the land, occurred when they acquired the rights of Francisco
Paulino, that is to say, on February 24, 1931.