Short answer. No, not once a judicial attachment is in place. Article 1988 of the Civil Code suspends the usual rule that a depositary must return the item on demand when the item has been judicially attached while in your possession. You must instead notify the depositor immediately and hold the item.
What the law says
This provision shall not apply when the thing is judicially attached while in the depositary's possession, or should he have been notified of the opposition of a third person to the return or the removal of the thing deposited. In these cases, the depositary must immediately inform the depositor of the attachment or opposition.
Civil Code, Article 1988 — Return on Demand. Read the full provision →
The general rule: return on demand
The baseline rule under Article 1988 is that the thing deposited must be returned to the depositor upon demand, even if a fixed return date was agreed upon. A depositor who wants the item back is entitled to it whenever they ask. The arrangement exists for their benefit, and any agreed period for the deposit is generally for the depositor's convenience, not a reason to delay return. As the depositary, you ordinarily have no right to hold on to the item simply because the agreed period has not expired.
When a court attachment changes everything
The rule flips when two circumstances arise. First: the item is judicially attached while in your possession. A judicial attachment is a court order directing that property be held as security for a potential judgment. Once that order reaches you or takes effect over the item, you no longer have authority to return it to the depositor — doing so would directly defy a court order and expose you to liability. Second: if you have been notified of the opposition of a third person to the return or the removal of the thing deposited, the same suspension applies.
Your immediate duty: notify the depositor
The article does not leave you in limbo. In these cases, the depositary must immediately inform the depositor of the attachment or opposition. This notification duty is mandatory. The depositor needs to know that a legal hold has been placed on their property — they may want to contest the attachment, settle the underlying claim, or take other steps. Your role is not to adjudicate who is right; it is to keep the item safe, comply with the court order, and promptly tell the depositor what has happened. Do this in writing so you have a record.
Practical steps if you are in this situation
If you received a court order of attachment, read it carefully and confirm it covers the specific item in your possession. Do not return the item to the depositor until the attachment is lifted or you receive contrary court direction. Notify the depositor in writing as soon as possible — the article says immediately. Keep a copy of the court order, your notification to the depositor, and any response you receive. If you are uncertain whether the attachment is valid, or what it covers, getting legal advice before acting is essential — releasing attached property can have serious consequences, and so can wrongfully holding it.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Sps. Godfrey and Gerardina Serfino vs. Far East Bank and Trust Company, Inc., now Bank of the Philipine Islands, G.R. No. 171845, October 10, 2012 — read the decision on LawPhil →