Necessary Deposit

What is a Necessary Deposit?

·     In compliance with a legal obligation (governed by the law establishing it, and in case of deficiency, the rules on voluntary deposit e.g. Arts. 538, 586 and 2104)

·     Made on the occasion of any calamity (governed by the rules on voluntary deposit and Art. 2168)

·     Deposit by travelers (transients) in hotels and inns:

a.    To be liable as depositaries, the following elements must concur:

1.  they have been previously informed about the effects brought by the guests; and

2.  the latter have taken the precautions prescribed regarding their safekeeping

b.    Extent of liability: includes those damaged in hotel annexes e.g. vehicles in hotel’s garages

c.    When is a hotel-keeper liable?

1. the loss or injury is caused by his servants or employees as well as by strangers, provided that notice has been given and proper precautions taken;

2. the loss is caused by the act of the thief or robber done without the use of arms and irresistible force of in this case, the hotel-keeper is apparently negligent

d.    When is a hotel-keeper not liable?

1.  the loss or injury is caused by force majeure like flood, fire, theft or robbery by a stranger (not by hotel-keeper’s servant or employee) with the use of arms or irresistible force, etc., unless he is guilty of fault or negligence in failing to provide against the loss or injury from his cause;

2.  the loss is due to the acts of the guests, his family, servants or visitors;

3.  the loss arises from the character of the things brought into the hotel

e.    Posting of notices whereby the responsibility of the hotel-keeper as set forth in A, B, C, and D above is suppressed or diminished shall be VOID.

f.      The hotel-keeper has a right to retain the things brought into the hotel by the guest, as a security for credits on account of lodging, and supplies usually furnished to hotel guests.  In addition, non-payment constitutes estafa.

·         Deposit by passengers with common carriers: The rules on A, C, D and E above apply.

What is Sequestration or Judicial Deposit?

• Judicial deposit or sequestration takes place when an attachment or seizure of property  in litigation is ordered by a court.

What are the Obligations of depositary (appointed by the Court) of sequestered property?

a.       to take care or the property with the diligence of a good father of a family

b.       cannot be relieved of his responsibility until the litigation is ended or the court so orders

·         As for matters not provided for in this Code, the Rules of Court may be applicable.

Judicial	Extra-judicial
Will of the court	Will of the parties (contract)
Security and to secure the right of a party to recover in case of a favorable judgment	Custody and safekeeping of the thing
Movable or immovable	Only movable
Always onerous	May be compensated or not, but generally gratuitous
In the behalf of the person who, by the judgment, has a right	In behalf of the depositor or 3rd person designated