cred transm 5

8/19/2019 Cred Transm 5

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INTEGRATED REALTY CORP., VS PNB 174 S 295

Fact: So!t"! "# 19$7, Ra%& Sa#to' a(! t)o t"! (!*o'"t' )"t+ O!-'!a' Ba#

o/ 0a#"&a OB0 ao%#t"#3 to 7,. T+! co--!'*o#("#3 c!-t"cat!' o/ t"!

(!*o'"t )!-! "''%!( "# /ao- o/ Sa#to' a#( t+!-!a/t!- %'!( a' '!c%-"t6 /o- a &oa# 6I#t!3-at!( R!a&t6 Co-*., t+-o%3+ "t' P-!'"(!#t Sa#to', to P+"&. Nat"o#a& Ba# PNB

ao%#t"#3 to 7,. A D!!( o/ A''"3#!#t )a' t+!-!a/t!- !8!c%t!( 6 Sa#to' "#

/ao- o/ PNB a#( a D!!( o/ Co#/o-"t6 o/ A''"3#!#t )a' a&'o !8!c%t!( 6 OB0.

A/t!- t+! (%! (at!' o/ t+! t"! (!*o'"t c!-t"cat!', OB0 ("( #ot *a6 PNB

+!#c! t+! &att!- (!a#(!( *a6!#t /-o IRC a#( Sa#to'. IRC a#( Sa#to', "#/o-!(

PNB t+at t+! &oa# o&"3at"o# )a' (!!!( *a"( )"t+ t+! "--!oca&! a''"3#!#t o/

t+! t"! (!*o'"t c!-t"cat!'. T+%' PNB &!( a# act"o# /o- co&&!ct"o# o/ o#!6

a3a"#'t IRC a#( Sa#to'. IRC a#( Sa#to' t+!# &!( a c-o''c&a" a3a"#'t OB0. OB0

a("tt!( "t' /a"&%-! to *a6 (%! to "t' ("'t-!''!( #a#c"a& '"t%at"o#. A/t!- t-"a&, t+!

t-"a& co%-t -%&!( "# /ao- o/ PNB a#( o-(!-!( IRC a#( Sa#to' to *a6 PNB t+! &oa#o&"3at"o# *&%' "#t!-!'t.

OB0 o# t+! ot+!- +a#(, )o%&( *a6 IRC a#( Sa#to' )+at!!- ao%#t' t+!

&att!- )o%&( *a6 to PNB. O# a**!a&, t+! a**!&&at! co%-t o("!( t+! (!c"'"o# o/ t+!

t-"a& co%-t 6 (!&!t"#3 t+! *o-t"o# o/ t+! %(3!#t o-(!-"#3 OB0 to *a6 IRC a#(

Sa#to' )+at!!- ao%#t' t+!6 )"&& *a6 to PNB *&%' "#t!-!'t'.

IRC a#( Sa#to' #o) c&a" t+at OB0 '+o%&( -!"%-'! t+! /o- )+at!!-

ao%#t' t+!6 a6 ! a(%(3!( to *a6 PNB 6 )a6 o/ co*!#'at"o# /o- (aa3!'

"#c%--!( *&%' "#t!-!'t.

ISS;E:


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T+! a**&"ca&! -%&! "' t+at &!3a& "#t!-!'t, "# t+! #at%-! o/ (aa3!' /o- #o#

co*&"a#c! )"t+ a# o&"3at"o# to *a6 a '% o/ o#!6, "' -!co!-a&! /-o t+! (at!

%("c"a& o- !8t-a%("c"a& (!a#( "' a(!,


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("'c+a-3"#3 a# o&"3at"o# co#'"'t"#3 o/ t+! *a6!#t o/ a '% o/ o#!6, "' t+!

*a6!#t o/ t+! *!#a&t6 "#t!-!'t at t+! -at! a3-!!( %*o#H a#( "# t+! a'!#c! o/ a

't"*%&at"o# o/ a *a-t"c%&a- -at! o/ *!#a&t6 "#t!-!'t, t+!# t+! *a6!#t o/ a(("t"o#a&

"#t!-!'t at a -at! !%a& to t+! -!3%&a- o#!ta-6 "#t!-!'t, a#( "/ #o -!3%&a-

"#t!-!'t +a( !!# a3-!!( %*o#, t+!# *a6!#t o/ &!3a& "#t!-!'t.

L"3%ta# '. CA G.R1?$77

Fact': P!t"t"o#!-' To&o!o L"3%ta# a#( L!o#"(a' (!&a L&a#a ota"#!( a &oa# "# t+!

ao%#t o/ P12,. /-o -!'*o#(!#t S!c%-"t6 Ba# a#( T-%'t Co*a#6.

P!t"t"o#!-' !8!c%t!( a *-o"''o-6 #ot! "#("#3 t+!'!&!', o"#t&6 a#( '!!-a&&6,

)"t+ a# "#t!-!'t o/ 15.1?9 *!- a##% %*o# at%-"t6 a#( to *a6 a *!#a&t6 o/ 5

!!-6 o#t+ o# t+! o%t'ta#("#3 *-"#c"*a& a#( "#t!-!'t "# ca'! o/ (!/a%&t a#( a&'o a

1 atto-#!6J' /!!' "/ t+! att!- )!-! "#(o-'!( to a &a)6!- /o- co&&!ct"o#.

T+! o&"3at"o# at%-!(, t+! *!t"t"o#!-' )!-! #ot a&! to '!tt&! t+! o&"3at"o#H

t+! a# 3a! a# !8t!#'"o#, 't"&& t+! 'a! +a**!#!(. S"#c! t+! *!t"t"o#!-' 't"&&

(!/a%&t!(, t+! /o-!- &!( a co*&a"#t /o- -!co!-6 o/ t+! (%! ao%#t.

I''%!:


4/26

a o#t+. It )a' a&'o !!# +!&( t+at t+! 15.1?9 *!- a##% 't"*%&at!( "#t!-!'t a#(

t+! 1 atto-#!6J' "' -!a'o#a&! a#( #ot !8c!''"!. T+! "#t!-!'t *-!'c-"!( "# &oa#

#a#c"#3 a--a#3!!#t' "' a /%#(a!#ta& *a-t o/ t+! a#"#3 %'"#!'' a#( t+! co-!

o/ a a#' !8"'t!#c!.

Sebastian Siga-an, petitioner, vs. Alicia Villanueva, respondent.

Facts: Respondent filed a complaint for sum of money against petitioner.Respondent claimed that petitioner approached her inside the PN and offered to loanher the amount of P!"#,###.## of $hich the loan agreement $as not reduced in $ritingand there $as no stipulation as to the payment of interest for the loan. Respondentissued a chec% $orth P!##,###.## to petitioner as partial payment of the loan. She

then issued another chec% in the amount of P#,###.## to petitioner as payment of theremaining balance of the loan of $hich the e'cess amount of P()#,###.## $ould beapplied as interest for the loan. Not satisfied $ith the amount applied as interest,petitioner pestered her to pay additional interest and threatened to bloc% or disapproveher transactions $ith the PN if she $ould not comply $ith his demand. *hus, she paidadditional amounts in cash and chec%s as interests for the loan. She as%ed petitioner for receipt for the payments but $as told that it $as not necessary as there $as mutualtrust and confidence bet$een them. According to her computation, the total amount shepaid to petitioner for the loan and interest accumulated to P(,#,###.##.

*he R*+ rendered a ecision holding that respondent made an overpayment of

her loan obligation to petitioner and that the latter should refund the e'cess amount tothe former. t ratiocinated that respondents obligation $as only to pay the loanedamount of P!"#,###.##, and that the alleged interests due should not be included in thecomputation of respondents total monetary debt because there $as no agreementbet$een them regarding payment of interest. t concluded that since respondent madean e'cess payment to petitioner in the amount of P))#,###.## through mista%e,petitioner should return the said amount to respondent pursuant to the principleof solutio indebiti . Also, petitioner should pay moral damages for the sleepless nights


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and $ounded feelings e'perienced by respondent. /urther, petitioner should paye'emplary damages by $ay of e'ample or correction for the public good, plus attorneysfees and costs of suit.

Issue: 0(1 2hether or not interest $as due to petitioner3 and 0&1 $hether the principle of

solutio indebiti applies to the case at bar.

Ruling: 0(1 No. +ompensatory interest is not chargeable in the instant case because it$as not duly proven that respondent defaulted in paying the loan and no interest $asdue on the loan because there $as no $ritten agreement as regards payment of interest. Article (4!) of the +ivil +ode, $hich refers to monetary interest, specificallymandates that no interest shall be due unless it has been e'pressly stipulated in$riting. As can be gleaned from the foregoing provision, payment of monetary interestis allo$ed only if: 0(1 there $as an e'press stipulation for the payment of interest3 and0&1 the agreement for the payment of interest $as reduced in $riting. *he concurrenceof the t$o conditions is re5uired for the payment of monetary interest. *hus, $e have

held that collection of interest $ithout any stipulation therefor in $riting is prohibited byla$.

0&1 Petitioner cannot be compelled to return the alleged e'cess amount paid byrespondent as interest. 6nder Article (4)# of the +ivil +ode, if the borro$er of loan paysinterest $hen there has been no stipulation therefor, the provisions of the +ivil +odeconcerning solutio indebiti shall be applied. Article &(!" of the +ivil +ode e'plains theprinciple of solutio indebiti . Said provision provides that if something is received $henthere is no right to demand it, and it $as unduly delivered through mista%e, theobligation to return it arises. n such a case, a creditor-debtor relationship is createdunder a 5uasi-contract $hereby the payor becomes the creditor $ho then has the rightto demand the return of payment made by mista%e, and the person $ho has no right toreceive such payment becomes obligated to return the same. *he 5uasi-contractof solutio indebiti har%s bac% to the ancient principle that no one shall enrich himself un7ustly at the e'pense of another. *he principle of solutio indebiti applies $here 0(1 apayment is made $hen there e'ists no binding relation bet$een the payor, $ho has noduty to pay, and the person $ho received the payment3 and 0&1 the payment is madethrough mista%e, and not through liberality or some other cause. 2e have held that theprinciple of solutio indebiti applies in case of erroneous payment of undue interest.

Article &&8& of the +ivil +ode states that in a 5uasi-contract, such as solutio indebiti ,e'emplary damages may be imposed if the defendant acted in an oppressive manner.Petitioner acted oppressively $hen he pestered respondent to pay interest andthreatened to bloc% her transactions $ith the PN if she $ould not pay interest. *hisforced respondent to pay interest despite lac% of agreement thereto. *hus, the a$ard of e'emplary damages is appropriate so as to deter petitioner and other lenders fromcommitting similar and other serious $rongdoings


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Eastern Shipping vs CA

GR No. 97412 12 !ul" 1994

2#4 SCRA 7$

FAC%S

*$o fiber drums $ere shipped o$ned by 9astern Shipping from apan. *he shipment as insured

$ith a marine policy. 6pon arrival in ;anila unto the custody of metro Port Service, $hich e'cepted to one

drum, said to be in bad order and $hich damage $as un%no$n the ;ercantile nsurance +ompany. Allied

computed from the decision of the court a 5uo.

2hen an obligation, not constituting a loan or forbearance of money, is breached, an interest on the

amount of damaes a$arded may be imposed at the discretion of the court at the rate of )> per annum.

No interest shall be ad7udged on unli5uidated claims or damages e'cept $hen or until the demand can be

established $ith reasonable certainty.


7/26

2hen the 7udgment of the court a$arding a sum of money becomes final and e'ecutor, the

rate of legal interest shall be (&> per annum from such finality until satisfaction, this interim period being

deemed to be by then an e5uivalent to a forbearance of money.

*he interest due shall be (&> PA to be computed fro default, or 9.

0&1 /rom the date the 7udgment is made. 2here the demand is established $ith reasonable

certainty, the interest shall begin to run from the time the claim is made 7udicially or 9 but $hen such

certainty cannot be so reasonably established at the time the demand is made, the interest shll begin to

run only from the date of 7udgment of the court is made.

081 *he +ourt held that it should be computed from the decision rendered by the court a 5uo.

Nacar v. Gallery Frames, 703 scra 439

/acts: ario Nacar filed a labor case against ?allery /rames and its o$ner /elipe


8/26

even if the employer appeals C but $ill be reversed if employer $ins on appeal. *he second

part is the ruling on the a$ard of bac%$ages and=or separation pay. /or bac%$ages, it $ill

be computed from the date of illegal dismissal until the date of the decision of the Babor

Arbiter.


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Except : 2hen later on established $ith certainty. nterest shall still be )> per annum

demandable from the date of 7udgment because such on such date, it is already deemed

that the amount of damages is already ascertained.

8. +ompounded nterest

C *his is applicable to both monetary and non-monetary obligations

C )> per annum computed against a$ard of damages 0interest1 granted by the court. *o be

computed from the date $hen the courts decision becomes final and e'ecutory until the

a$ard is fully satisfied by the losing party.

". *he )> per annum rate of legal interest shall be applied prospectively:

C /inal and e'ecutory 7udgments a$arding damages prior to uly (, (8 shall apply the(&> rate3

C /inal and e'ecutory 7udgments a$arding damages on or after uly (, (8 shall apply the

(&> rate for unpaid obligations until une 8#, (83 unpaid obligations $ith respect to said

7udgments on or after uly (, (8 shall still incur the )>

P@ILIPPINE NATIONAL BANK ', T@E @ON. CO;RT OF PEALS a#(

A0BROSIOPADILLA,.

FACTS:

P-"at! -!'*o#(!#t PR A-o'"o Pa("&&a, a**&"!( /o- a#( )a' 3-a#t!( a c-!("t &"#!o/ 21.?"&&"o#, 6 *!t"t"o#!- PNB. T+"' )a' /o- a t!- o/ 2 6!a-' at 1? "#t!-!'t *!-

a##% a#( )a' '!c%-!( 6 -!a& !'tat! o-t3a3! a#( 2 *-o"''o-6 #ot!' !8!c%t!(

"# /ao- o/ P!t"t"o#!- 6 PR. T+! c-!("t a3-!!!#t a#( t+! *-o"''o-6 #ot!', "#

!M!ct, *-o"(! t+at PR a3-!!' to ! o%#( 6 "#c-!a'!' to t+! "#t!-!'t -at!

't"*%&at!(, *-o"(!( "t "' )"t+"# t+! &""t' *-o"(!( /o- 6 &a) .Co#"ct "# t+"' ca'!

a-o'! )+!# P!t"t"o#!- %#"&at!-a&&6 "#c-!a'!( t+! "#t!-!'t -at! /-o 1? to: 1 2

Q>%&6 19?4H 2 41 QOcto!- 19?4H a#( 4? QNo!!- 19?4, o- t"!'


10/26

)"t+"# t+! '*a# o/ a '"#3&! 6!a-. T+"' )a' (o#! (!'*"t! t+! #%!-o%' &!tt!-' o/

-!%!'t a(! 6 PR t+at t+! "#t!-!'t -at! ! "#c-!a'!( o#&6 to 21 o- 24.PR &!(

a co*&a"#t a3a"#'t P!t"t"o#!- )"t+ t+! RTC. T+! &att!- ("'"''!( t+! ca'! /o- &ac o/

!-"t. A**!a& 6 PR to CA -!'%&t!( "# +"' /ao-. @!#c! t+! *!t"t"o# /o- c!-t"o-a-"

%#(!- R%&! 45 o/ ROC &!( 6 PNB )"t+ SC.

ISS;E:

D!'*"t! t+! -!oa& o/ t+! ;'%-6 La) c!"&"#3 o# "#t!-!'t, a6 t+! a# a&"(&6

"#c-!a'! t+! 't"*%&at!( "#t!-!'t -at! o# &oa#' co#t-act!( )"t+ t+"-( *!-'o#' a' o/t!#

a' #!c!''a-6 a#( a3a"#'t t+! *-ot!'t o/ '%c+ *!-'o#'.

@ELD: NO, A&t+o%3+ %#(!- S!c. 2 o/ PD 11$, t+! 0o#!ta-6 Boa-( "' a%t+o-"!( to

*-!'c-"! t+! a8"% -at! o/ "#t!-!'t /o- &oa#' a#( to c+a#3! '%c+ -at!'

)+!#!!- )a--a#t!( 6 *-!a"&"#3 !co#o"c a#( 'oc"a& co#("t"o#', 6 !8*-!''

*-o"'"o#, "t a6 #ot (o 'o o/t!#!- t+a# o#c! !!-6 12 o#t+'. I/ t+! 0o#!ta-6

Boa-( ca##ot, %c+ &!'' ca# PNB, !M!ct "#c-!a'!' o# t+! "#t!-!'t -at!' o-! t+a#o#c! a 6!a-. Ba'!( o# t+! c-!("t a3-!!!#t a#( *-o"''o-6 #ot!' !8!c%t!(

!t)!!# t+! *a-t"!', a&t+o%3+ PR ("( a3-!! to "#c-!a'! o# t+! "#t!-!'t -at!' a&&o)!(

6 &a), #o &a) )a' *a''!( )a--a#t"#3 P!t"t"o#!- to !M!ct "#c-!a'! o# t+! "#t!-!'t

-at!' o# t+! !8"'t"#3 &oa# o/ PR /o- t+! o#t+' o/ >%&6 to No!!- o/ 19?4.N!"t+!-

t+!-! !"#3 a#6 (oc%!#t !8!c%t!( a#( (!&"!-!( 6 PR to !M!ct '%c+ "#c-!a'!. Fo-

!'ca&at"o# c&a%'!' to ! a&"( a#( )a--a#t t+! "#c-!a'! o/ t+! "#t!-!'t -at!' o#

&oa#', t+!-! %'t !:1 "#c-!a'! )a' a(! 6 &a) o- 6 t+! 0o#!ta-6 Boa-(H 2

't"*%&at"o# %'t "#c&%(! a c&a%'! /o- t+! -!(%ct"o# o/ t+! 't"*%&at!( "#t!-!'t -at! "#

t+! !!#t t+at t+! a8"% "#t!-!'t "' &o)!-!( 6 &a) o- 6 t+! 0o#!ta-6 oa-(. I#

t+"' ca'!, PNB !-!&6 -!&"!( o# "t' o)# Boa-( R!'o&%t"o#', )+"c+ a-! #ot &a)' #o--!'o&%t"o#' o/ t+! 0o#!ta-6 Boa-(. D!'*"t! t+! '%'*!#'"o# o/ t+! ;'%-6 La),

"*o'"#3 a c!"&"#3 o# "#t!-!'t -at!', t+"' (o!' #ot a%t+o-"! a#' to %#"&at!-a&&6

a#( '%cc!''"!&6 "#c-!a'! "#t!-!'t -at!' "# "o&at"o# o/ S!c. 2 PD 11$.I#c-!a'!'

%#"&at!-a&&6 !M!ct!( 6 PNB )a' "# "o&at"o# o/ t+! 0%t%a&"t6 o/ Co#t-act' %#(!- A-t.

1?. T+"' *-o"(!' t+at t+! a&"("t6 a#( co*&"a#c! o/ t+! *a-t"!' to t+! co#t-act

ca##ot ! &!/t to t+! )"&& o/ o#! o/ t+! co#t-act"#3 *a-t"!'. I#c-!a'!' a(! a-!

t+!-!/o-! o"(. I#c-!a'! o# t+! 't"*%&at!( "#t!-!'t -at!' a(! 6 PNB a&'o

co#t-a!#!' A-t. 195$. It *-o"(!' t+at, #o "#t!-!'t '+a&& ! (%! %#&!'' "t +a' !!#

!8*-!''&6 't"*%&at!( "# )-"t"#3. PR #!!- a3-!!( "# )-"t"#3 to *a6 "#t!-!'t "*o'!(

6 PNB "# !8c!'' o/ 24 *!- a##%. I#t!-!'t -at! "*o'!( 6 PNB, a' co--!ct&6

/o%#( 6 CA, "' "#(%"ta&6 !8c!''"!.

T"o K+! C+"o . CAGR No. 7$112 S!*t!!- , 1991

Fact': P!t"t"o#!- '+"**!( a3' o/ "*o-t!( '+ !a&' a#( "#'%-!( t+! 'a! )"t+

-!'*o#(!#t "#'%-a#c! co*a#6 Ea't!-# A''%-a#c! S%-!t6 Co-* EASCO. D%-"#3

t-a#'"t, t+! a3' )!-! /o%#( o%t to ! (aa3!( t+%' -!#(!-"#3 t+! '+ !a&'

%'!&!''. P!t"t"o#!- &!( a c&a" !/o-! t+! EASCO )+"c+ (!#"!( t+! 'a!,


11/26

*-o*t"#3 t+! /o-!- to '%! t+! &att!-at CFI C!% )+o o-(!-!( EASCO to *a6 t+!

*!t"t"o#!-' c&a" /o- "#'%-a#c! )"t+ (aa3!'. ;*o# !8!c%t"o#, -!'*o#(!#t &!( a

*!t"t"o# /o- c!-t"o-a-" )"t+ t+! CA )+o '!t a'"(! t+! &o)!- co%-t' (!c"'"o# a-3%"#3

t+at t+! &att!- +a' !--!( "# 8"#3 t+! &!3a& "#t!-!'t o# 12 *!- a##% -at+!- t+a#

t+! a#(at!( $.

I''%!: %&6 29, 1974 *%-'%a#t to P-!'"(!#t"a& D!c-!! No. 11$

;'%-6 La)-a"'!( t+! &!3a& -at! o/ "#t!-!'t /-o '"8 $ *!-c!#t to t)!&!

12*!-c!#t. T+! a(%'t!( -at! !#t"o#!( "# t+! c"-c%&a- -!/!-' o#&6 to&oa#' o-

/o-!a-a#c!' o/ o#!6, 3oo(' o- c-!("t' a#( co%-t %(3!#t' t+!-!o# %t #ot to

co%-t %(3!#t' /o- (aa3!' a-"'"#3 /-o "#%-6 to *!-'o#' a#( &o'' o/ *-o*!-t6

)+"c+ (o!' #ot "#o&! a &oa#. I# t+! ca'!o/ P+"&"**"#! Ra"t B%' L"#!', I#c. '.

C-%, G.R. No. 7117, >%&6 2?, 19?$, 14 SCRA 15?, t+! Co%-t (!c&a-!( t+att+! &!3a&

-at! o/ "#t!-!'t "' '"8 $ *!-c!#t *!- a##% a#( #ot t)!&!12 *!-c!#t, )+!-! a %(3!#t a)a-( "' a'!( o# a# act"o# /o-(aa3!' /o- *!-'o#a& "#%-6, #ot %'! o-

/o-!a-a#c! o/ o#!6, 3oo('o- c-!("t. I# t+! 'a! !"#, t+! Co%-t +!&( "# GSIS '.

Co%-t o/ A**!a&'G.R. No. 5247?, Octo!-, 19?$, 145 SCRA 11, t+at t+! -at!'

%#(!-t+! ;'%-6 La)a!#(!( 6 P. D. 11$ a-! a**&"ca&! o#&6 to "#t!-!'t 6 )a6 o/

co*!#'at"o# /o- t+! %'! o- /o-!a-a#c! o/ o#!6H "#t!-!'t 6)a6 o/ (aa3!' "'

3o!-#!( 6 A-t"c&! 229 o/ t+! C""& Co(!.


12/26

A&!(a . CAA*-"& 17, 199$H Ka*%#a#, >.

FACTS:PNB 3-a#t!( to t+! '*o%'!' A&!(a '!!-a& &oa#c-!("t accoo(at"o#'

tota&"#3 P1? 0 "# a *!-"o( o/ '"8 6!a-' at a# "#t!-!'t -at! o/ 21 *!- a##%. To

'!c%-! t+! &oa#, t+! '*o%'!' A&!(a !8!c%t!( a R!a& E'tat! 0o-t3a3! Co#t-act

co!-"#3 a ,5 '%a-! !t!- *a-c!& o/ &a#(, to3!t+!- )"t+ t+! %"&("#3 !-!ct!(t+!-!o#t+! 0a-"# P&aa.O# t+! co#t-act, "t )a' 't"*%&at!( t+at t+! Ba# -!'!-!'

t+! -"3+t to "#c-!a'! t+! "#t!-!'t -at! )"t+"# t+! &""t' a&&o)!( 6 &a) at a#6

t"! (!*!#("#3 o# )+at!!- *o&"c6 "t a6 a(o*t "# t+! /%t%-!H *-o"(!(, t+at

t+! "#t!-!'t -at! o# t+"'t+!'! accoo(at"o#' '+a&& ! co--!'*o#("#3&6

(!c-!a'!( "# t+! !!#t t+at t+! a**&"ca&! a8"% "#t!-!'t -at! "' -!(%c!(

6 &a) o-6 t+! 0o#!ta-6 Boa-(. I# !"t+!- ca'!, t+! a(%'t!#t "# t+! "#t!-!'t -at!

a3-!!( %*o# '+a&& ta! !M!ct o# t+! !M!ct""t6 (at! o/ t+! "#c-!a'! o-

(!c-!a'! o/ t+! a8"% "#t!-!'t -at!. P!t"t"o#!-' a(! *a-t"a& *a6!#t' o# t+!

&oa# tota&"#3.P7,75,4.$$. O# 0a-c+ 1, 19?4, PNB -a"'!( t+! "#t!-!'t -at! to

2?. It )a' t+!-!%*o# "#c-!a'!( /-o a# "#"t"a& 21 to a +"3+ o/ $? !t)!!#

0a-c+ o/ 19?4 to S!*t!!-, 19?$. P!t"t"o#!- *-ot!'t!( t+! "#c-!a'! "# "#t!-!'t

-at!'. B!/o-! t+! &oa# )a' to at%-! "# 0a-c+, 19??, t+! '*o%'!' &!( a *!t"t"o# /o-

"#%#ct"o# a#( TRO )"t+ t+! RTC. T+! RTC "''%!( a )-"t o/ *-!&""#a-6

"#%#ct"o# a#( '%**&!!#ta& *-!&""#a-6 )-"t o/ "#%#ct"o# ;*o# t+! *o't"#3 o/ a

co%#t!- o#( 6 t+! PNB, t+! t-"a& co%-t ("''o&!( t+! '%**&!!#ta& )-"t o/

*-!&""#a-6 "#%#ct"o#. PNB '!t a #!) (at! /o- t+! /o-!c&o'%-! 'a&! o/ 0a-"# P&aa

)+"c+ )a' 0a-c+ 12, 199. P-"o- to t+! 'c+!(%&!( (at!, +o)!!-, *!t"t"o#!-'

t!#(!-!( to -!'*o#(!#t a# t+! ao%#t o/ P4,142,51?., co#'"'t"#3 o/

t+! *-"#c"*a& P1?,,. a#( acc-%!( "#t!-!'t ca&c%&at!( at t+! o-"3"#a&&6

't"*%&at!( -at! o/21. T+! PNB -!/%'!( to acc!*t t+! *a6!#t. P!t"t"o#!-'

/o-a&&6 co#'"3#!( t+! ao%#t o/P4,142,51?. )"t+ t+! R!3"o#a& T-"a& Co%-tCa'!.

@"'to-6: RTC "''%!( a )-"t o/ *-!&""#a-6 "#%#ct"o# !#o"#"#3 t+! /o-!c&o'%-! 'a&! o/

0a-"# P&aa CA '!t a'"(! t+! a''a"&!( o-(!-' a#( %*+!&( PNBJ' -"3+t to /o-!c&o'!

t+! o-t3a3!( *-o*!-t6 ISS;E:


13/26

"#t!-!'t '+a&& ! (%! %#&!'' "t +a' !!# !8*-!''&6 't"*%&at!( "# )-"t"#3.


14/26

1. BANCO FILIPINO VS NAVARROFACTS: F&o-a#t! (!& Va&&! t+! BORROa#%a-6 2, 197$ o- o# a &at!- (at! (!& Va&&!

co#t!#(!( t+at CIRC;LAR No. 494 "' #ot t+! &a) co#t!*&at!( "# t+!

E'ca&at"o# C&a%'! o/ t+!*-o"''o-6 #ot!, t+%' +! &!( '%"t a3a"#'t BANCO

FILIPINO /o- D!c&a-ato-6 R!&"!/ )"t+ -!'*o#(!#t Co%-t,*-a6"#3 t+at t+! E'ca&at"o#

C&a%'! ! (!c&a-!( #%&& a#( o"( a#( t+at BANCO FILIPINO ! o-(!-!( to (!'"'t

/-o!#/o-c"#3 t+! "#c-!a'!( -at! o/ "#t!-!'t o# t+! BORRO


15/26

T-"a& co%-tJ' -!a'o#: P.D. No. 11$ (o!' #ot !8*-!''&6 3-a#t t+! C!#t-a& Ba#

a%t+o-"t6 to a8""! "#t!-!'t -at!')"t+ -!t-oact"! !M!ct a#( t+at BANCO

FILIPINO ca##ot &!3a&&6 "*o'! a +"3+!- -at! o/ "#t!-!'t !/o-! t+!!8*"-at"o#

o/ t+! 156!a- *!-"o( "# )+"c+ t+! &oa# "' to ! *a"( ot+!- t+a# t+! 12 *!- a##%

"# /o-c! at t+! t"!o/ t+! !8!c%t"o# o/ t+! &oa#. Ba#co F"&"*"#o /"&!( *!t"t"o# /o-

-!"!) o# c!-t"o-a-" '"#c! a %!'t"o# o/ &a) "' "#o&!( SC "*&!a(!( t+! C!#t-a&

Ba# a#( -!%"-!( "t to '%"t "t' Co!#t, a#( !#co%-a3!( +o!o)#!-'

'""&a-&6'"t%at!( a' t+! BORRO


16/26

1 t+at t+!-! ca# ! a# "#c-!a'! "# "#t!-!'t "/ "#c-!a'!( 6 &a) o- 6 t+!

0o#!ta-6 Boa-(H a#(2 "# o-(!- /o- '%c+ 't"*%&at"o# to ! a&"(, "t %'t

"#c&%(! a *-o"'"o# /o- -!(%ct"o# o/ t+! 't"*%&at!( "#t!-!'t "# t+!!!#t t+at

t+! a**&"ca&! a8"% -at! o/ "#t!-!'t "' -!(%c!( 6 &a) o- 6 t+! 0o#!ta-6

Boa-(. %"co . C+"#a Ba#"#3 Co-*

DOCTRINE :

T+! !'ca&at"o# c&a%'! "' o"( "/ "t 3-a#t' -!'*o#(!#t t+! *o)!- to "*o'! a#

"#c-!a'!( -at! o/ "#t!-!'t )"t+o%t a )-"tt!# #ot"c! to *!t"t"o#!-' a#( t+!"- )-"tt!#

co#'!#t.

T+!'! *o"#t' %'t ! co#'"(!-!( 6 c-!("to-' a#( (!to-' "# t+! (-a/t"#3 o/ a&"(

!'ca&at"o# c&a%'!'. F"-'t&6, a' a att!- o/ !%"t6 a#( co#'"'t!#t )"t+ P.O. No. 1$?4,

t+! !'ca&at"o# c&a%'! %'t ! *a"-!( )"t+ a (!!'ca&at"o# c&a%'!.

S!co#(&6, 'o a' #ot to "o&at! t+! *-"#c"*&! o/ %t%a&"t6, t+! !'ca&at"o# %'t !

*!33!( to t+! *-!a"&"#3 a-!t -at!', a#( #ot !-!&6 a! a 3!#!-a&"!(

-!/!-!#c! to a#6 "#c-!a'! o- (!c-!a'! "# t+! "#t!-!'t -at! "# t+! !!#t a &a) o- a

C!#t-a& Ba# -!3%&at"o# "' *a''!(. T+"-(&6, co#'"'t!#t )"t+ t+! #at%-! o/ co#t-act',

t+! *-o*o'!( o("cat"o# %'t ! t+! -!'%&t o/ a# a3-!!!#t !t)!!# t+! *a-t"!'.

I# t+"' )a6, o%- c-!("t '6't! )o%&( ! /ac"&"tat!( 6 - &oa# *-o"'"o#' t+at #ot

o#&6 a"( 'ca& 'ta"&"t6, %t a&'o ao"( #%!-o%' ("'*%t!' a#( &"t"3at"o#' !t)!!#

c-!("to-' a#( (!to-'.


17/26

S*o%'!' I3#ac"o F. >%"co a#( A&"c! P. >%"co *!t"t"o#!-' ota"#!( a &oa# /-o C+"#a

Ba#"#3 Co-*o-at"o# -!'*o#(!#t a' !"(!#c!( 6 t)o P-o"''o-6 Not!' ot+ (at!(

Octo!- $, 199? a#( #%!-!( 571514 a#( 57152, 5 /o- t+! '%'

o/ $,21$, a#( P4, 19,, -!'*!ct"!&6.

T+! &oa# )a' '!c%-!( 6 a R!a& E'tat! 0o-t3a3! RE0 o!- *!t"t"o#!-'J *-o*!-t6&ocat!( at 49 G-!!#'"&&! St.,


18/26

&"!)"'! o-(a"#' t+at #o "#t!-!'t '+a&& ! (%! %#&!'' "t +a' !!# !8*-!''&6

't"*%&at!( "# )-"t"#3.

T+! "#("#3 !M!ct o/ a#6 a3-!!!#t !t)!!# *a-t"!' to a co#t-act "' *-!"'!( o#

888 2 t+at t+!-! %'t ! %t%a&"t6 !t)!!# t+! *a-t"!' a'!( o# t+!"- !''!#t"a&

!%a&"t6. A#6 co#t-act )+"c+ a**!a-' to ! +!a"&6 )!"3+!( "# /ao- o/ o#! o/ t+!*a-t"!' 'o a' to &!a( to a# %#co#'c"o#a&! -!'%&t "' o"(. A#6 't"*%&at"o# -!3a-("#3

t+! a&"("t6 o- co*&"a#c! o/ t+! co#t-act )+"c+ "' &!/t 'o&!&6 to t+! )"&& o/ o#! o/ t+!

*a-t"!', "' &"!)"'!, "#a&"(

E'ca&at"o# c&a%'!' -!/!- to 't"*%&at"o#' a&&o)"#3 a# "#c-!a'! "# t+! "#t!-!'t -at!

a3-!!( %*o# 6 t+! co#t-act"#3 *a-t"!'. T+"' Co%-t +a' &o#3 -!co3#"!( t+at t+!-! "'

#ot+"#3 "#+!-!#t&6 )-o#3 )"t+ !'ca&at"o# c&a%'!'

N!!-t+!&!'', a# !'ca&at"o# c&a%'! )+"c+ 3-a#t' t+! c-!("to- a# %#-"(&!( -"3+t to

a(%'t t+! "#t!-!'t "#(!*!#(!#t&6 a#( %*)a-(&6, co*&!t!&6 (!*-""#3 t+! (!to- o/

t+! -"3+t to a''!#t to a# "*o-ta#t o("cat"o# "# t+! a3-!!!#t "' o"(. A't"*%&at"o# o/ '%c+ #at%-! "o&at!' t+! *-"#c"*&! o/ %t%a&"t6 o/ co#t-act'. I# a ca'!,

SC 'a"( t+at *!t"t"o#!-J' a''!#t to t+! o("cat"o#' "# t+! "#t!-!'t -at!' ca##ot !

"*&"!( /-o t+!"- &ac o/ -!'*o#'! to t+! !o' '!#t 6 -!'*o#(!#t

It "' #o) '!tt&!( t+at a# !'ca&at"o# c&a%'! "' o"( )+!-! t+! c-!("to- %#"&at!-a&&6

(!t!-"#!' a#( "*o'!' a# "#c-!a'! "# t+! 't"*%&at!( -at! o/ "#t!-!'t )"t+o%t t+!

!8*-!'' co#/o-"t6 o/ t+! (!to-. S%c+ %#-"(&!( -"3+t 3"!# to c-!("to-' to a(%'t

t+! "#t!-!'t "#(!*!#(!#t&6 a#( %*)a-(&6 )o%&( co*&!t!&6 ta! a)a6 /-o t+!

(!to-' t+! -"3+t to a''!#t to a# "*o-ta#t o("cat"o# "# t+!"- a3-!!!#t a#(

)o%&( a&'o #!3at! t+! !&!!#t o/ %t%a&"t6 "# t+!"- co#t-act'.

0o-! -!c!#t&6 "# So&"(a# Co-*o-at"o# . P!-a#!#t @o!', I#co-*o-at!( ,

)! %*+!&( a' a&"( a# !'ca&at"o# c&a%'! )+"c+ -!%"-!( a )-"tt!# #ot"c! to a#(co#/o-"t6 6 t+! o--o)!- to t+! "#c-!a'!( "#t!-!'t -at!

I# Po&ota#, S-. . CA ,O# *!t"t"o#!-J' co#t!#t"o# t+at t+! "#t!-!'t -at! )a' %#"&at!-a&&6

"*o'!( a#( a'!( o# t+! 'ta#(a-(' a#( -at! /o-%&at!( 'o&!&6 6 -!'*o#(!#t

c-!("t ca-( co*a#6, )! +!&(: Ca-(+o&(!- +!-!6 a%t+o-"!' S!c%-"t6 D"#!-' to


19/26

co--!'*o#("#3&6 "#c-!a'! t+! -at! o/ '%c+ "#t!-!'t "# t+! !!#t o/ c+a#3!' "#

*-!a"&"#3 a-!t -at!' 8 8 8 "' a# !'ca&at"o# c&a%'!. @o)!!-, "t ca##ot ! 'a"( to

! (!*!#(!#t 'o&!&6 o# t+! )"&& o/ *-"at! -!'*o#(!#t a' "t "' a&'o (!*!#(!#t o# t+!

*-!a"&"#3 a-!t -at!'. T+%', "t )a' a&"( !ca%'! "t )a'#t 'o&!&6 *ot!'tat"! a' "t

)a' a'!( o# t+! a-!t -at!''o!t+"#3 o%t'"(! t+! co#t-o& o/ -!'*o#(!#t

@!-!, t+! "#t!-!'t -at!' )o%&( a-6 a' (!t!-"#!( 6 *-!a"&"#3 a-!t -at!'.

E"(!#t&6, t+! *a-t"!' "#t!#(!( t+! "#t!-!'t o# *!t"t"o#!-'J &oa#, "#c&%("#3 a#6

%*)a-( o- (o)#)a-( a(%'t!#t, to ! (!t!-"#!( 6 t+! *-!a"&"#3 a-!t -at!'

a#( #ot ("ctat!( 6 -!'*o#(!#tJ' *o&"c6.

@O


20/26

: 1.I# Oct. 199, @!-o"#a E'to-!' a#( S*o%'!' S%*a#3a# !#t!-!( "#to a

Co#("t"o#a& D!!( o/ Sa&! )+!-! E'to-!' oM!-!( to '!&&, a#( S*o%'!' oM!-!( to %6 a

*a-c!& o/ &a#( "# Ca"t! /o- P4.70.

2.A/t!- a&o't 7 6!a-' a#( (!'*"t! t+! *a6!#t o/ P.50 6 t+! S*o%'!', E'to-!'

't"&& /a"&!( to co*&6 )"t+ +!- o&"3at"o# to +a#(&! t+! *!ac!/%& t-a#'/!- o/ o)#!-'+"*a' 'tat!( "# 5 *-o"'"o#' "# t+! co#t-act.

.I# a &!tt!- "# 2, S*o%'!' (!a#(!( t+! -!t%-# o/ t+! ao%#t )"t+"# 15 (a6'

/-o -!c!"*t

4. I# -!*&6, E'to-!' *-o"'!( to -!t%-# t+! 'a! )"t+"# 12 (a6'

5. S*o%'!' a3-!!( %t "*o'!( a# "#t!-!'t o/ 12 a##%a&&6

$. E'to-!' 't"&& /a"&!( (!'*"t! (!a#('

7. S*o%'!' &!( a co*&a"#t )"t+ t+! RTC a3a"#'t E'to-!' a#( Ro!-to A-"a'

a&&!3!(&6 act!( a' E'to-!'J a3!#t

?. I# A#')!-, E'to-!' 'a"( t+!6 )!-! )"&&"#3 to *a6 t+! *-"#c"*a& ao%#t %t )"t+o%t

t+! "#t!-!'t a' "t )a' #ot a3-!!( %*o#

a.T+at '"#c! t+! Co#("t"o#a& D!!( o/ Sa&! *-o"(!( o#&6 /o- t+! -!t%-# o/ t+!

(o)#*a6!#t "# ca'! o/ -!ac+, t+!6 ca#t ! &"a&! /o- &!3a& "#t!-!'t a' )!&&

9. RTC -%&!( 'a6"#3 t+at t+! S*o%'!' a-! !#t"t&!( to t+! "#t!-!'t %t o#&6 at $ *!-

a##% a#( a&'o !#t"t&!( to att6J' /!!'

1. O# a**!a&, CA 'a"( t+at t+! "''%! to -!'o&! "' a. )+!t+!- "t "' *-o*!- to "*o'!

"#t!-!'t /o- a# o&"3at"o# t+at (o!' #ot "#o&! a &oa# o- /o-!a-a#c! o/ o#!6 "#

t+! a'!#c! o/ 't"*%&at"o# o/ t+! *a-t"!'

11. CA a=-!( RTC a. T+at "#t!-!'t '+o%&( 'ta-t o# (at! o/ /o-a& (!a#( 6

S*o%'!' to -!t%-# t+! o#!6 #ot )+!# co#t-act )a' !8!c%t!( a' 'tat!( 6 t+! RTC

. T+at A-"a' #ot ! 'o&"(a-"&6 &"a&! a' +! act!( a' a3!#t o#&6 a#( ("( #ot !8*-!''&6

"#( +"'!&/ o- !8c!!(!( +"' a%t+o-"t6

12. E'to-!' co#t!#(': a. Not o%#( to *a6 "#t!-!'t !ca%'! t+! (!!( o#&6 *-o"(!(

/o- t+! -!t%-# o/ t+! (o)#*a6!#t "# ca'! o/ /a"&%-! to co*&6 )"t+ +!- o&"3at"o#'

.T+at att6 /!!' #ot *-o*!- !ca%'! ot+ RTC a#( CA '%'ta"#!( +!- co#t!#t"o# t+at

12 "#t!-!'t )a' %#ca&&!( /o- 'o "t '+o)!( t+at S*o%'!' ("( #ot )"#

1. S*o%'!' co#t!#(:


21/26

a. It "' o#&6 /a"- t+at "#t!-!'t ! "*o'!( !ca%'! E'to-!' /a"&!( to -!t%-# t+!

ao%#t %*o# (!a#( a#( %'!( t+! o#!6 /o- +!- !#!t

. E'to-!' /a"&!( to -!&ocat! t+! +o%'! o%t'"(! t+! *!-"!t!- o/ t+! '%!ct &ot a#(

co*&!t! t+! #!c!''a-6 (oc%!#t'

c. A' to t+! /!!', t+!6 c&a" t+at t+!6 )!-! /o-c!( to &"t"3at! )+!# E'to-!' %#%'t&6

+!&( t+! ao%#t

I''%!: I' t+!"*o'"t"o# o/ "#t!-!'t a#( atto-#!6J' /!!' "' *-o*!- YES I#t!-!'t a'!(

o# A-t 229 o/ CC $ o- %#(!- C!#t-a& Ba# C"-c%&a- 41$ 12 12

@!&(: I#t!-!'t a6 ! "*o'!( !!# "# t+! a'!#c! o/ 't"*%&at"o# "# t+! co#t-act.

A-t"c&! 221 o/ t+! C""& Co(! !8*-!''&6 *-o"(!' t+at Q"#t!-!'t a6, "# t+!

("'c-!t"o# o/ t+! co%-t, ! a&&o)!( %*o# (aa3!' a)a-(!( /o- -!ac+ o/ co#t-act.

E'to-!' /a"&!( o# +!- o&"3at"o#' (!'*"t! (!a#(.

O S+! a("tt!( t+at t+! co#("t"o#' )!-! #ot /%&&&!( a#( )a' )"&&"#3 to -!t%-# t+!

/%&& ao%#t o/ P.50 %t +a' #ot (o#! 'o

O S+! "' #o) "# (!/a%&t

T+! "#t!-!'t at t+! -at! o/ 12 "' a**&"ca&! "# t+! "#'ta#t ca'!.

G!# R%&!: t+! a**&"ca&! "#t!-!'t -at! '+a&& ! co*%t!( "# acco-(a#c! )"t+ t+!

't"*%&at"o# o/ t+! *a-t"!'

E8c: "/ #o 't"*%&at"o#, a**&"ca&! -at! o/ "#t!-!'t '+a&& ! 12 *!- a##%

O


22/26

I# t+"' ca'!, #o 't"*%&at"o# )a' a(!

Co#t-act "#o&!( "# t+"' ca'! "' #ot a &oa# %t a Co#("t"o#a& D!!( o/ Sa&!.

O No %!'t"o# t+at t+! o&"3at"o#' )!-! #ot !t a#( t+! -!t%-# o/ o#!6 #ot a(!

E!# "/ t-a#'act"o# )a' a Co#("t"o#a& D!!( o/ Sa&!, t+! 't"*%&at"o# 3o!-#"#3 t+!

-!t%-# o/ t+! o#!6 ca# ! co#'"(!-!( a' a /o-!a-a#c! o/ o#!6 )+"c+ -!%"-!'

12 "#t!-!'t

I# C-"'"#a Ga-!#t', I#c. . Co%-t o/ A**!a&', Fo-!a-a#c!co#t-act%a& o&"3at"o#

o/ &!#(!- o- c-!("to- to -!/-a"# (%-"#3 a 3"!# *!-"o( o/ t"!, /-o -!%"-"#3 t+!

o--o)!- o- (!to- to -!*a6 a &oa# o- (!t t+!# (%! a#( *a6a&!.

O I# '%c+ ca'!, /o-!a-a#c! o/ o#!6, 3oo(' o- c-!("t' )"&& +a! #o ("'t"#ct

(!#"t"o# /-o a &oa#.

O +o)!!-, t+! *+-a'! /o-!a-a#c! o/ o#!6, 3oo(' o- c-!("t' "' !a#t to +a! a

'!*a-at! !a#"#3 /-o a &oa#, ot+!-)"'! t+!-! )o%&( +a! !!# #o #!!( to a((

t+at *+-a'! a' a &oa# "' a&-!a(6 '%=c"!#t&6 (!#!( "# t+! C""& Co(!

O Fo-!a-a#c! o/ o#!6, 3oo(' o- c-!("t' '+o%&( t+!-!/o-! -!/!- to a--a#3!!#t'

ot+!- t+a# &oa# a3-!!!#t', )+!-! a *!-'o# ac%"!'c!' to t+! t!*o-a-6 %'! o/ +"'

o#!6, 3oo(' o- c-!("t' *!#("#3 +a**!#"#3 o/ c!-ta"# !!#t' o- /%&&&!#t o/

c!-ta"# co#("t"o#'.

E'to-!'J %#)a--a#t!( )"t++o&("#3 o/ t+! o#!6 ao%#t' to /o-!a-a#c! o/ o#!6

)+"c+ ca# ! co#'"(!-!( a' a# "#o&%#ta-6 &oa# 'o -at! "' 12 'ta-t"#3 "# S!*t. 2

T+! a)a-( o/ atto-#!6J' /!!' "' )a--a#t!(. #o (o%t t+at t+! S*o%'!' )!-! /o-c!(

to &"t"3at! to *-ot!ct t+!"- "#t!-!'t,

".! ., to -!co!- t+!"- o#!6. T+! ao%#t o/ P5,. o-! a**-o*-"at!


23/26

S.C. 0!3a)o-&( . E#3-. Pa-a(a G.R. No. 1??4, S!*t. 11, 21

Fact': S.C. 0!3a)o-&( Co#'t-%ct"o# a#( D!!&o*!#t Co-*o-at"o# SC 0!3a)o-&(

o%3+t !&!ct-"ca& &"3+t"#3 at!-"a&' /-o G!#&"t! I#(%'t-"!', a 'o&! *-o*-"!to-'+"*o)#!( 6 E#3- L%"' Pa-a(a /o- "t' R!a(R"t! *-o!ct "# Ca#&%a#3, La3%#a.

WSC 0!3a)o-&( )a' %#a&! to *a6 /o- t+! ao! *%-c+a'! o# (%! (at!, %t &a!(

"t o# "t' /a"&%-! to co&&!ct %#(!- "t' '%co#t-act )"t+ t+! E#"-oK&!!#.

WE#3-. Pa-a(a t+!# /"&!( a '%"t "# t+! RTC to co&&!ct /-o t+! *!t"t"o#!- t+! 'a"(

a&a#c!, *&%' (aa3!', co't' a#( !8*!#'!'.

WSC 0!3a)o-&( "# "t' a#')!- (!#"!( &"a"&"t6, c&a""#3 t+at "t )a' -!&!a'!( /-o "t'

"#(!t!(#!'' to E#3-. Pa-a(a 6 -!a'o# o/ t+! #oat"o# o/ t+!"- co#t-act, )+"c+ too

*&ac! )+!# t+! &att!- acc!*t!( t+! *a-t"a& *a6!#t o/ E#"-oK&!!# "# "t' !+a&/, a#(t+!-!6 ac%"!'c!( to t+! '%'t"t%t"o# o/

E#"-oK&!!# a' t+! #!) (!to- "# t+! *!t"t"o#!-X' *&ac!.

WRTC -!#(!-!( %(3!#t "# /ao- E#3-. Pa-a(o.

WO# a**!a& to t+! CA, SC 0!3a)o-&( a"#ta"#!( t+at t+! t-"a& co%-t !--!( "# -%&"#3

t+at #o #oat"o# o/ t+! co#t-act too *&ac! a#( /o- t+! -'t t"!, "t /%-t+!- a-3%!(

t+at t+! t-"a& co%-t '+o%&( +a! ("'"''!( t+! co*&a"#t /o- /a"&%-! o/ E#3-. Pa-a(o to

"*&!a( G!#&"t! I#(%'t-"!' a' a *-o*!- *a-t6 "# "#t!-!'tZ, a' *-o"(!( "# S!c 2 o/

R%&! o/ t+! 1997 R%&!' o/ C""& P-oc!(%-!.

I# S!c 13 o/ R%&! 1$, "t "' a&'o *-o"(!( t+at t+! (!/!#(a#t a6 o! to ("'"''

t+! '%"t o# t+! 3-o%#( t+at "t )a' #ot -o%3+t "# t+! #a! o/ o- a3a"#'t t+! -!a&

*a-t6 "# "#t!-!'t, )"t+ t+! !M!ct t+at t+! co*&a"#t "' t+!# (!!!( to 'tat! #o

ca%'! o/ act"o#.

CA ("'"''!( t+! a**!a& #ot"#3 t+at at #o 'ta3! "# t+! *-oc!!("#3' ("( SC

0!3a)o-&( -a"'! t+! %!'t"o# o/ )+!t+!- t+! '%"t )a' -o%3+t "# t+! #a! o/ t+!

-!a& *a-t6 "# "#t!-!'t. L"t"3a#t' ca##ot -a"'! a# "''%! /o- t+! -'t t"! o# a**!a& a't+"' )o%&( co#t-a!#! t+! a'"c -%&!' o/ /a"- *&a6 a#( %'t"c!. 0o-!o!-, E#3-. Pa-a(a

"' t+! 'o&! *-o*-"!to- o/ G!#&"t! I#(%'t-"!', a#( t+!-!/o-! t+! -!a& *a-t6*&a"#t"M.

CA co#c%--!( )"t+ t+! RTC. O# ot"o# /o- -!co#'"(!-at"o#, t+! SC 0!3a)o-&( -a"'!(

/o- t+! -'t t"! t+! "''%! o/ t+! a&"("t6 o/ t+! !-"cat"o# a#( c!-t"cat"o# o/ #o#

/o-% '+o**"#3 attac+!( to t+! co*&a"#t. CA (!#"!( t+! 'a"( ot"o# /o- &ac o/

!-"t.


24/26

I''%!':

First +etro vs Este ,el Sol


25/26

GR No. 141$11 1- Nove/er 2001

#9 SCRA 99

FAC%S

/;+ granted 9ste del Sol a loan to finance a sports=resort comple' in ;ontalban, RiEal. 6nder

the agreement, the interest $as ()> pa based on the diminishing balance. n case of default, anacceleration clause $as provided and the amount due is sub7ect to > one-time penalty on the amount

due and such amount shall bear interest at the highest rate permitted by la$. respondent e'ecuted a

R9;, individual continuing suretyship and an under$riting agreement $hereby /;+ shall under$rite the

public offering of one P(,### common shares of respondents capital stoc% for one-time under$riting

fee of P#,###. /or failure to pay its obligation, /;+ caused the foreclosure of the R9;. At the public

auction, /+ $as the highest bidder. Petitioner filed to collect for alleged deficiency balance against

respondents since it failed to collect from the sureties, plus interest at &(> pa. the trial court ruled in favor

of /;+. Respondents appealed before the +A $hich held that the fees provided for in the 6nder$riting

and +onsultacy Agreements $ere mere subterfuges to camouflage the e'cessively usurious interest

charged. *he +A ordered /;+ to reimburse petitioner representing $hat is ue to petitioner and $hat is

due to respondent.

ISS&E

2hether or not the interests are la$ful

'E()

No. an apparently la$ful loan is usurious $hen it is intended that additional compensation for the

loan be disguised by an ostensibly unrelated contract for the payment by the borro$er for the lenders

services $hich re of little value or $hich are not in fact to be rendered. Article (4!@ clearly provides:

contracts and stipulations, under any cloa% or device $hatever, intended to circumvent the la$ agaistn

usury shall be void. *he borro$er may recover in accordance $ith the la$s on usury.

CARPO '. C@;A DY NG, GR. No'. 1577 15599, S!*t!!- , 25FACTS:


26/26

@!-!"# *!t"t"o#!- '*o%'!' Da"( Ca-*o a#( R!c+"&(a Ca-*o co#t-act!( a &oa#

/-oE&!a#o- C+%a a#( E&a D6 N3 /o- a c!-ta"# '% o/ o#!6 *a6a&! )"t+"# '"8 $

o#t+' )"t+ a#"#t!-!'t -at! o/ '"8 *!-c!#t $ *!- o#t+ '!c%-!( 6 a o-t3a3!(

o/ t+! '*o%'!' Ca-*o o/ t+!"- -!'"(!#t"a& +o%'! a#( &ot. P!t"t"o#!-' /a"&!( to *a6 t+!

&oa# %*o# (!a#(. Co#'!%!#t&6, t+! -!a&!'tat! o-t3a3! )a' !8t-a%("c"a&&6

/o-!c&o'!(, o-t3a3!( *-o*!-t6 'o&( at a *%&"c a%ct"o#, a#(t+! +o%'! a#( &ot )a'a)a-(!( to -!'*o#(!#t', )+o )!-! t+! o#&6 "((!-'. ;#a&! to !8!-c"'!t+!"- -"3+t o/

-!(!*t"o# 6 *!t"t"o#!-', a c!-t"cat! o/ 'a&! )a' "''%!( "# t+! #a! o/

-!'*o#(!#t'. @o)!!-, *!t"t"o#!-' co#t"#%!( to occ%*6 t+! 'a"( +o%'! a#( &ot, t+%'

-!'*o#(!#t'&! a *!t"t"o# /o- )-"t o/ *o''!''"o# )+"c+ )a' 3-a#t!( 6 t+! T-"a&

Co%-t. P!t"t"o#!-' &!( aco*&a"#t /o- a##%&!#t o/ -!a& !'tat! o-t3a3! a#( t+!

co#'!%!#t /o-!c&o'%-! *-oc!!("#3'c&a""#3 t+at t+! -at! o/ "#t!-!'t 't"*%&at!( "#

t+! *-"#c"*a& &oa# a3-!!!#t "' c&!a-&6 #%&& a#( o"(/o- !"#3 !8c!''"!, "#"%"to%',

%#co#'c"o#a&! a#( !8o-"ta#t. Co#'!%!#t&6, t+!6 a&'o a-3%!t+at t+! #%&&"t6 o/ t+!

a3-!!( "#t!-!'t -at! aM!ct' t+! a&"("t6 o/ t+! -!a& !'tat! o-t3a3!.

ISS;E:

cred transm 5

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