Chiao Liong Tan vs.

Court of Appeals (Yong-private respondent)

Doctrines:

The principle that a trustee who puts a certificate of registration in his

name
cannot
repudiate the trust by relying on the registration is one of the well-known
limitations upon a title. A trust, which derives its strength from the
confidence one reposes on another especially between brothers, does not
lose that character simply because of what appears in a legal document.

Facts:

Chiao Long Tan claims to be the owner of a 1976 Isuzu Elf van. As owner
thereof, petitioner says he has been in possession, enjoyment, and
utilization of the van until his older brother, Tan Ban Yong, unlawfully took
it away from him.
Chiao claims that the van is registered under his name, that he bought the
vehicle from isuzu balintawak, that he sent his brother to pay for the
van and the receipt was issued in his name because it was his money
that was used to pay for the vehicle, that he allowed his brother to use the
vehicle because the latter was working for the company, and that his
brother later refused to return the vehicle and appropriated the same
for himself.
According to respondent, CLT Industries was the family business and it was
under the name of petitioner since at the that time, he was leaving for
the US and petitioner is the only Filipino left in the Philippines. When the
family business needed a vehicle, he asked petitioner to look for a vehicle
and gave him money as down payment for an Isuzu Elf van. After a
month, he paid for the van by getting a loan from a friend.
As much as the receipt was placed in the name of petitioner, private
respondent allowed the registration under the name of petitioner.
The trial court hence ruled in favor of the private respondent.
CA affirmed TCs decision.

ISSUE: Whether there was an Implied trust was created

HELD:

YES, there was.

Chiao Liong Tan vs. Court of Appeals (Yong-private respondent)

It is undeniable that an implied trust as created when the certificate of

registration of the motor vehicle was placed in the name of petitioner

although the price thereof was not paid by him but by private respondent.
The New Civil Code recognizes cases of implied trust other than those
enumerated therein. Thus, although no specific provision could be cited to
apply to the parties herein, it is undeniable that an implied trust was
created when the certificate of registration of the motor vehicle was placed
in the name of the petitioner although the price thereof was not paid by him
but by private respondent. The principle that a trustee who puts a
certificate of registration in his name cannot repudiate the trust by relying
on the registration is one of the well-known limitations upon a title. A trust,
which derives its strength from the confidence one reposes on another
especially between brothers, does not lose that character simply because of
what appears in a legal document.