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ATP Digest - Naguit Vs CA

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CELESTINA T. NAGUIAT vs.

COURT OF APPEALS and AURORA


QUEAÑO Queano filed a complaint with the RTC annulling the REM which
Tinga J. was eventually granted by the RTC and stopped the auction sale.

DOCTRINE: One who clothes another with apparent authority as Naguiat vigorously insists that Queaño received the loan proceeds.
his agent, and holds him out to the public as such, cannot be
permitted to deny the authority of such person to act as his agent, ISSUE: Was there a contract of Agency between Naguiat
to the prejudice of innocent third parties dealing with such person and Ruebendfeldt?
in good faith, and in the honest belief that he is what appears to be.
HELD:
FACTS: YES.
Queaño applied with Naguiat for a loan in the amount of
(P200,000.00), which Naguiat granted. Naguiat indorsed to Queaño Suffice to say, however, the existence of an agency relationship
Associated Bank Check No. 090990 (dated 11 August 1980) for the between Naguiat and Ruebenfeldt is supported by ample evidence.
amount of (P95,000.00), which was earlier issued to Naguiat by the As correctly pointed out by the Court of Appeals, Ruebenfeldt was
Corporate Resources Financing Corporation. She also issued her not a stranger or an unauthorized person. Naguiat instructed
own Filmanbank Check No. 065314, to the order of Queaño, also Ruebenfeldt to withhold from Queaño the checks she issued or
dated 11 August 1980 and for the amount of (P95,000.00). The indorsed to Queaño, pending delivery by the
proceeds of these checks were to constitute the loan granted by latter of additional collateral. Ruebenfeldt served as agent of
Naguiat to Queaño. Naguiat on the loan application of Queaño’s friend, Marilou
Farralese, and it was in connection with that transaction that
To secure the loan, Queaño executed a Deed of Real Estate Queaño came to know Naguiat. It was also Ruebenfeldt who
Mortgage in favor of Naguiat. Queaño issued to Naguiat a accompanied Queaño in her meeting with Naguiat and on that
promissory note for the amount of (P200,000.00), with interest at occasion, on her own and without Queaño asking for it, Reubenfeldt
12% per annum, payable on 11 September 1980. Queaño also actually drew a check for the sum of P220,000.00 payable to
issued a Security Bank and Trust Company check, postdated 11 Naguiat, to cover for Queaño’s alleged liability to Naguiat under the
September 1980, for the amount of (P200,000.00) and payable to loan agreement.
the order of Naguiat.
The Court of Appeals recognized the existence of an “agency by
Upon presentment, the Security Bank check was dishonored. estoppel” citing Article 1873 of the Civil Code. Apparently, it
Queano requested SB to stop payment of her postdated check but considered that at the very least, as a consequence of the
the latter refused due to policy. interaction between Naguiat and Ruebenfeldt, Queaño got the
impression that Ruebenfeldt was the agent of Naguiat, but Naguiat
Queaño received a letter from Naguiat’s lawyer, demanding did nothing to correct Queaño’s impression.
settlement of the loan. Shortly thereafter, Queaño and one Ruby
Ruebenfeldt (Ruebenfeldt) met with Naguiat. At the meeting, In that situation, the rule is clear. One who clothes another with
Queaño told Naguiat that she did not receive the proceeds of the apparent authority as his agent, and holds him out to the public as
loan, adding that the checks were retained by Ruebenfeldt, who such, cannot be permitted to deny the authority of such person to
purportedly was Naguiat’s agent act as his agent, to the prejudice of innocent third parties dealing
with such person in good faith, and in the honest belief that he is
Naguiat applied for the extrajudicial foreclosure of the mortgage what he appears to be.27 The Court of Appeals is correct in
with the Sheriff of Rizal Province, who then scheduled the invoking the said rule on agency by estoppel.
foreclosure sale on 14 August 1981.

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