NECESSARY DEPOSIT

Art. 1996. A deposit is necessary:

(1) When it is made in compliance with a legal obligation;

(2) When it takes place on the occasion of any calamity, such as fire, storm, flood, pillage, shipwreck, or other similar events.

Art. 1997. The deposit referred to in No. 1 of the preceding article shall be

governed by the provisions of the law establishing it, and in case of its deficiency, by the rules on ordinary deposit.

The deposit mentioned in No. 2 of the preceding article shall be regulated by the provisions concerning voluntary deposit and by article 2168.

Art. 1998. The deposit of effects made by travelers in hotels or inns shall also be regarded as necessary. The keepers of hotels or inns shall be responsible for them as depositaries, provided that notice was given to them, or to their

employees, of the effects brought by the guests and that, on the part of the latter, they take the precautions which said hotel-keepers or their substitutes advised relative to the care and vigilance of their effects.

Art. 1999. The hotel-keeper is liable for the vehicles, animals and articles which have been introduced or placed in the annexes of the hotel.

Art. 2168. When during a fire, flood, story, or other calamity, property is saved from destruction by another person without the knowledge of the owner, the latter is bound to pay the former just compensation.

What are the instances when deposit is NECESSARY?

There are FOUR instances/ examples of necessary deposit:

1. Deposit made in compliance with a legal obligation

2. Deposit that takes place on the occasion of any calamity 3. Deposit of effects made by travelers in hotels or inns 4. Deposit of goods with common carriers

1. Deposit made in compliance with a legal obligation Example:

In pledge, when the creditor uses the thing pledged without the authority of the owner or misuses it in any other way, the owner may ask that it be judicially or extrajudicially deposited.

2. Deposit that takes place on the occasion of any calamity

Example: A fire razes Y’s house. X goes inside and gets Y’s TV for the purpose of saving it. X becomes the depositary of the TV.

The relationship of X and Y, being a deposit, is governed by the provisions on voluntary deposit. But in addition, it is also governed by Art. 2168 on quasi-contracts. Art. 2168 says that the owner of the thing should pay the depositary just compensation for his expenses in preserving the thing. So unlike a

voluntary deposit, which is by default gratuitous, this kind of necessary deposit is, by express provision of law, for compensation.

3. Deposit of effects made by travelers in hotels or inns

Requisites before the hotel or inn may be held responsible as depositary:

a. The hotel or inn should have been previously informed about the effects brought by the guests; and

b. The guests have taken the precautions prescribed regarding their safekeeping.

The liability extends not just to effects inside the rooms but also to property of the guests in the annexes, such as cars in the garage.

Example: You go to Edsa Shangri-La to eat at the Garden Café. You turn your car over to the valet. Is there a contract of deposit?

Yes. You don’t have to actually get a room in order to be considered a guest for purposes of constituting the contract of deposit with the hotel. As long as you use the main facilities of the hotel, you’re considered a guest.

What if you wanted to shop in Megamall, but since you didn’t want to go through the trouble of looking for parking in Megamall, you just used the Edsa Shangri-La valet service – are you still a guest?

No. Although you need not check-in in order to be considered a guest, you must at least use the principal services of the hotel – the gym, the pool, meeting place at the lobby, etc. Valet parking is not a principal service of the hotel.

If you’re the guest, you should: (a) give notice to the hotel of the effects you have brought into the hotel and (b) take the precautions prescribed for their safekeeping.

But do you need to give an itemized listing of your valuables every time you go into a hotel?

No. Constructive notice to the employees of the hotel is enough. It is sufficient that you bring in your personal effects and the hotel personnel see them.

4. Deposit of goods with common carriers

This is governed by Articles 1733, 1734, 1735 of the Civil Code under Lease.

Common carriers are generally responsible for the loss, destruction, and deterioration of the goods, unless due to fortuitous event or the fault of the owner of the goods.

Art. 2000. The responsibility referred to in the two preceding articles shall include the loss of, or injury to the personal property of the guests caused by the

servants or employees of the keepers of hotels or inns as well as by strangers;

but not that which may proceed from any force majeure. The fact that travelers are constrained to rely on the vigilance of the keeper of the hotels or inn shall be considered in determining the degree of care required of him.

Art. 2001. The act of a thief or robber, who has entered the hotel is not deemed force majeure, unless it is done with the use of arms or through an irresistible force.

Art. 2002. The hotel-keeper is not liable for compensation if the loss is due to the acts of the guests, his family, servants or visitors, or if the loss arises from the character of the things brought into the hotel.

When is the hotel liable for the loss of the effects of its guests?

1. When the loss is caused by the employees of the hotel or by strangers, provided the guest followed the two requisites under Art. 1998 (notice and precaution).

2. When the loss is caused by the act of a thief or a robber done without the use of arms and irresistible force.

When is the hotel NOT liable?

1. When the loss or injury is caused by force majeure, like flood, fire, theft or robbery by a stranger with the use of arms or irresistible force, UNLESS the hotel-keeper is guilty of fault or negligence in failing to provide against the loss or injury from this cause.

So as a general rule, if armed men enter the hotel and steal your things, the hotel is excused from liability because it is considered a fortuitous event.

However, if the hotel failed to take reasonable precautions (ex: secluded island with only one security guard stationed near the shore and lots of foreigners checked in), it will still be liable for its negligence.

2. When the loss is due to the acts of the guest (who is the owner of the thing), his family, servants, or visitors; and

3. When the loss arises from the character of the things brought into the hotel Example of thing where the loss arises from the character of the thing: If you bring a Dalmatian, or a snake, or Cyrus’ pet hamster into the hotel, by the very nature of these pets, they could easily get lost in the premises.

Art. 2003. The hotel-keeper cannot free himself from responsibility by posting notices to the effect that he is not liable for the articles brought by the guest.

Any stipulation between the hotel-keeper and the guest whereby the

responsibility of the former as set forth in Articles 1998 to 2001 is suppressed or diminished shall be void.

Even if the hotel-keeper posts signs or puts these little fine-print stipulations that it is not liable for any loss, it cannot escape its liabilities as a depositary under Articles 1998 to 2001.

Reason: You cannot waive the liability of one who is guilty of gross negligence.

Gross negligence is equivalent to fraud or bad faith. And as we all know, a waiver of future fraud is void. It is contrary to law, morals, and public policy.

However, this only applies to a contract of deposit. In the case of carparks, the fine print on the tickets always contains a waiver of liability by the owner of the carpark for any loss within its premises. This waiver is valid because, as discussed already, the contract with the carpark is not a deposit but only a short-term lease.

Art. 2004. 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.

This is another pledge created by operation of law. If you do not pay your hotel bills, the hotel can keep your stuff as a security. Moreover, you will be liable for estafa.