G.R. No. L‑3309
November 10 1906

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FACTS
1. Parties International Banking Corporation (IBC), a Connecticut mercantile corporation licensed to do business in Manila, sued A.A. Montagne for ₱1,200 on a promissory note.
2. Promissory note Executed by Montagne in Manila on 5 December 1903, payable to “Casa Comisión” on 5 April 1904.
3. Endorsement The Casa Comisión indorsed the note to IBC. The endorsement, as reproduced in the complaint, contains the indorser’s signature but no date.
4. Claims IBC alleged non‑payment and sought a judgment plus a writ of attachment against Montagne’s property.
5. Procedural history Montagne filed a demurrer, arguing the complaint failed to show a cause of action because IBC was not the true owner of the note. The trial court overruled the demurrer, entered judgment for IBC, and Montagne appealed.

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ISSUE
Whether the endorsement of a negotiable instrument that omits the date required by Article 462 (in relation to Article 533) of the Philippine Commercial Code transfers ownership, thereby making IBC a proper “real party in interest” to sue on the note.

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RULING
The Supreme Court held that:

Under Article 462, paragraph 4, an endorsement must state “the date on which it is drawn.”
Article 463 expressly provides that if the date is omitted, ownership does not pass; the endorsement is merely a commission for collection.

The endorsement on the promissory note lacked a date; consequently, IBC did not acquire ownership of the note and could not sue in its own name. The demurrer should have been sustained.

Accordingly, the Court reversed the trial‑court’s ruling overruling the demurrer, remanded the case to the lower court with permission for the plaintiff to amend its complaint, and ordered judgment to be entered after ten days.

Concurrence: Justices Torres, Mapa, Carson, and Tracey.
Dissent: Chief Justice Arellano and Justice Willard.