G.R. No. L-4541 October 12, 1908

FACTS: John Kernan executed a promissory note in favor of N.T. Hashim & Co. The note was later endorsed by N.T. Hashim & Co. to A.T. Hashim, and subsequently by A.T. Hashim via blank endorsement. Kernan died, and the note was presented as a claim against his estate, which was initially disallowed. The Court of First Instance allowed the claim. The estate appealed, contending that N.T. Hashim & Co. was not the real party in interest.

ISSUE: Whether the promissory note was effectively transferred to A.T. Hashim via indorsement, thus making N.T. Hashim & Co. not the real party in interest and whether the Code of Commerce should apply.

RULING: The Supreme Court affirmed the decision of the Court of First Instance. The court held that the Code of Commerce did not apply since the note did not originate from a commercial operation. Instead, the Civil Code applied, particularly Article 1280 requiring a written transfer of assignments over a certain value. Moreover, since the endorsements were made after the note was due, were simple cessions, and did not affect the original title of N.T. Hashim & Co.