FAR EAST BANK v. CA FAR EAST BANK v. CA FACTS:
FACTS:Luna applied for, and was accorded, Luna applied for, and was accorded, a FAREASTCARD issued b pe!!oner a FAREASTCARD issued b pe!!oner Far Eas" Ban# and Trus"Far Eas" Ban# and Trus" Co$pan %&FEBTC&' a" i"s (asi) Branc*. +pon *is reues", "*e ban# also
Co$pan %&FEBTC&' a" i"s (asi) Branc*. +pon *is reues", "*e ban# also issued a supple$en"al card "o priva"eissued a supple$en"al card "o priva"e responden" Clari"a S. Luna. Clari"a los" *er
responden" Clari"a S. Luna. Clari"a los" *er card. T*e ban#-s in"ernal securi" procedures and polic wouldcard. T*e ban#-s in"ernal securi" procedures and polic would appear "o be "o $eanw*ile so record "*e los"
appear "o be "o $eanw*ile so record "*e los" card, alon) wi"* "*e principal card, alon) wi"* "*e principal card, as a &o" Card& orcard, as a &o" Card& or &Cancelled Card& in i"s $as"er /le.
&Cancelled Card& in i"s $as"er /le. Luis "endered a despedida lunc* for a c
Luis "endered a despedida lunc* for a c lose friend, a Filipino0A$erican, and lose friend, a Filipino0A$erican, and ano"*er )ues" a" "*e Ba*iaano"*er )ues" a" "*e Ba*ia Roo1op Res"auran" of "*e o"el 2n"ercon!nen"al 3anila. T*e card was no" *onored, Luis was forced "o pa in Roo1op Res"auran" of "*e o"el 2n"ercon!nen"al 3anila. T*e card was no" *onored, Luis was forced "o pa in cas* "*e bill a$oun!n) "o (455.67. Na"urall, Luis fel" e$barrassed b "*is inciden".
cas* "*e bill a$oun!n) "o (455.67. Na"urall, Luis fel" e$barrassed b "*is inciden". Luis Luna, "
Luis Luna, " *rou)* counsel, de$anded fro$ FEBTC "*e *rou)* counsel, de$anded fro$ FEBTC "*e pa$en" of da$a)es. Adrian 8. Fes"e9o, a vice0pa$en" of da$a)es. Adrian 8. Fes"e9o, a vice0 presiden" of "*e ban#, e:pressed "*e ban#;s apolo)ies "o Luis. Fes"e9o also sen"
presiden" of "*e ban#, e:pressed "*e ban#;s apolo)ies "o Luis. Fes"e9o also sen" a le<er "o "*e 3ana)er of "*ea le<er "o "*e 3ana)er of "*e Ba*ia Roo1op Res"auran" "o assure "*e l
Ba*ia Roo1op Res"auran" "o assure "*e l a<er "*a" priva"e responden"s were &ver valued clien"s& a<er "*a" priva"e responden"s were &ver valued clien"s& of FEBTC.of FEBTC. =illia$ An"*on Kin), Food and Bevera)e 3ana)er of "*e 2n"ercon!nen"al o"el, wro"e bac# "o sa "*a" "*e =illia$ An"*on Kin), Food and Bevera)e 3ana)er of "*e 2n"ercon!nen"al o"el, wro"e bac# "o sa "*a" "*e credibili" of priva"e responden" *ad never been &in ues!on.&
credibili" of priva"e responden" *ad never been &in ues!on.& RTC
-RTC - >rdered FEBTC "o pa >rdered FEBTC "o pa priva"e responden"s %a' (7??,???.?? $oral da$a)es@ %b' priva"e responden"s %a' (7??,???.?? $oral da$a)es@ %b' (4?,???.?? e:e$plar(4?,???.?? e:e$plar da$a)es@ and %c' (?,???.??
da$a)es@ and %c' (?,???.?? a<orne;s fees.a<orne;s fees. CA
-CA -ar$ed "*e decision of "*e "rial cour".ar$ed "*e decision of "*e "rial cour".
ISSUE:
ISSUE:=>N $oral and e:e$plar da$a)es will be =>N $oral and e:e$plar da$a)es will be awarded "o Lunaawarded "o Luna
HELD:
HELD:No. SC /nds, "*erefore, "*e award of $oral da$a)es $ade b "*e cour" a uo, ar$ed b "*eNo. SC /nds, "*erefore, "*e award of $oral da$a)es $ade b "*e cour" a uo, ar$ed b "*e appella"e cour", "o be inordina"e and subs"an!all devoid of
appella"e cour", "o be inordina"e and subs"an!all devoid of le)al basis. T*e ban# was re$iss in indeedle)al basis. T*e ban# was re$iss in indeed ne)lec!n) "o personall infor$ Luis of *is own
ne)lec!n) "o personall infor$ Luis of *is own card-s cancella!on. No"*in) in "*e /ndin)s of "*e "rial card-s cancella!on. No"*in) in "*e /ndin)s of "*e "rial cour"cour" and "*e appella"e cour", *owever, can sucien"l indica"e an delibera"e in"en" on "*e par" of FEBTC "o cause and "*e appella"e cour", *owever, can sucien"l indica"e an delibera"e in"en" on "*e par" of FEBTC "o cause *ar$ "o priva"e responden"s. Nei"*er could FEBTC;s ne)li)ence in failin) "o )ive personal no!ce "o L *ar$ "o priva"e responden"s. Nei"*er could FEBTC;s ne)li)ence in failin) "o )ive personal no!ce "o L uis beuis be considered so )ross as "o a$oun" "o $alice or
considered so )ross as "o a$oun" "o $alice or bad fai"*.bad fai"*.
&;Ar". 6.=*oever b ac" or o$ission causes da$a)e "o ano"*er, "*ere bein) faul" or ne)li)ence, is obli)ed &;Ar". 6.=*oever b ac" or o$ission causes da$a)e "o ano"*er, "*ere bein) faul" or ne)li)ence, is obli)ed "o pa for "*e da$a)e done. Suc* faul" or ne)li)ence, if
"o pa for "*e da$a)e done. Suc* faul" or ne)li)ence, if "*ere is no pre0e:is!n) con"rac"ual rela!on be"ween"*ere is no pre0e:is!n) con"rac"ual rela!on be"ween "*e par!es, is called a
"*e par!es, is called a uasi0delic" and is )overned b "*e provisions of uasi0delic" and is )overned b "*e provisions of "*is C*ap"er.;"*is C*ap"er.; &T*e dis!nc!on be"ween fraud, bad fai"* or
&T*e dis!nc!on be"ween fraud, bad fai"* or $alice in "*e sense of delibera"e or wan"on wron) doin) and$alice in "*e sense of delibera"e or wan"on wron) doin) and ne)li)ence %as $ere carelessness' is "oo funda$en"al in our law "o be i)nored %Ar"s.
ne)li)ence %as $ere carelessness' is "oo funda$en"al in our law "o be i)nored %Ar"s. 66?066'@ "*eir66?066'@ "*eir conseuences bein) clearl dieren!a"ed b "*e Code.
conseuences bein) clearl dieren!a"ed b "*e Code.
E:e$plar or correc!ve da$a)es, in "urn, are in"ended "o serve as an e:a$ple or as correc!on
E:e$plar or correc!ve da$a)es, in "urn, are in"ended "o serve as an e:a$ple or as correc!on for "*e publicfor "*e public )ood in addi!on "o $oral, "e$pera"e, liuida"ed or co$pensa"or da$a)es. 2n con"rac"s and uasi0con"rac"s, )ood in addi!on "o $oral, "e$pera"e, liuida"ed or co$pensa"or da$a)es. 2n con"rac"s and uasi0con"rac"s, "*e cour" $a award e:e$plar da$a)es if "*e defendan" is found "o *ave ac"ed in a wan"on, fraudulen", "*e cour" $a award e:e$plar da$a)es if "*e defendan" is found "o *ave ac"ed in a wan"on, fraudulen", rec#less, oppressive, or
rec#less, oppressive, or $alevolen" $anner$alevolen" $anner..
=EREF>RE, "*e pe!!on for review is )iven due course. T*e appealed decision
=EREF>RE, "*e pe!!on for review is )iven due course. T*e appealed decision is 3>D2F2ED b dele!n) "*eis 3>D2F2ED b dele!n) "*e award of $oral and e:e$plar da$a)es "o priva"e responden"s@ in i"s s"ead, pe!!oner is ordered "o pa award of $oral and e:e$plar da$a)es "o priva"e responden"s@ in i"s s"ead, pe!!oner is ordered "o pa priva"e responden" Luis A. Luna an a$oun" of (4,???.??
priva"e responden" Luis A. Luna an a$oun" of (4,???.?? b wa of no$inal da$a)es. 2n all o"*er respec"s,b wa of no$inal da$a)es. 2n all o"*er respec"s, "*e appealed decision is AFF2R3ED. No
"*e appealed decision is AFF2R3ED. No cos"s.cos"s.
Top
Topic 11: ic 11: Responsibility from negligenceResponsibility from negligence
CASE 31 CASE 31
HILII!E !ATI"!AL #A!$% pe&&oner% 's( C"URT "F AEALS )n* LIL+ S( U,"L%
HILII!E !ATI"!AL #A!$% pe&&oner% 's( C"URT "F AEALS )n* LIL+ S( U,"L% respon*ents(respon*ents(
-.(R( !o( 1/01/( September /2% 14 -.(R( !o( 1/01/( September /2% 14
FACTSG FACTSG
So$e!$e prior "o 7 >c"ober 6HH?
So$e!$e prior "o 7 >c"ober 6HH? priva"e responden" Lil S. (u9ol opened wi"* pe!!oner (NB 3andaluon)priva"e responden" Lil S. (u9ol opened wi"* pe!!oner (NB 3andaluon) an accoun" deno$ina"ed as &Co$bo Accoun",& a
an accoun" deno$ina"ed as &Co$bo Accoun",& a co$bina!on of Savin)s Accoun" and Curren" Accoun" inco$bina!on of Savin)s Accoun" and Curren" Accoun" in priva"e responden";s business na$e &(u9ol Tradin),& under w*ic*
priva"e responden";s business na$e &(u9ol Tradin),& under w*ic* c*ec#s drawn a)ains" priva"e responden"sc*ec#s drawn a)ains" priva"e responden"s c*ec#in) accoun" could be c*ar)ed a)ains" *er Savin)s Accoun" s*ould "*e
c*ec#in) accoun" could be c*ar)ed a)ains" *er Savin)s Accoun" s*ould "*e funds in *er Curren" Accoun" befunds in *er Curren" Accoun" be insucien" "o cover "*e value of *er c*ec#s. ence, priva"e responden" was issued b pe!!oner a insucien" "o cover "*e value of *er c*ec#s. ence, priva"e responden" was issued b pe!!oner a passboo#passboo# on "*e fron" cover of w*ic* was "pewri<en "*e words &Co$bo Deposi"
on "*e fron" cover of w*ic* was "pewri<en "*e words &Co$bo Deposi" (lan.&(lan.& >n 7 and I >c"ober
>n 7 and I >c"ober 6HH?, priva"e responden" issued a c*ec# in "*e 6HH?, priva"e responden" issued a c*ec# in "*e a$oun" of (7?,???.?? eac* in favor ofa$oun" of (7?,???.?? eac* in favor of *er dau)*"er0in0law
*er dau)*"er0in0law, Dr. C*arisse 3. , Dr. C*arisse 3. (u9ol and (u9ol and dau)*"er 8enus De >ca$po, dau)*"er 8enus De >ca$po, respec!velrespec!vel..
=*en issued and presen"ed for pa$en", priva"e responden" *ad sucien" funds in *er Savin)s Accoun". =*en issued and presen"ed for pa$en", priva"e responden" *ad sucien" funds in *er Savin)s Accoun". owever
owever, pe!!oner dis*onored *er c*ec# alle)edl for insucienc , pe!!oner dis*onored *er c*ec# alle)edl for insucienc of funds and debi"ed *er accoun" wi"*of funds and debi"ed *er accoun" wi"* (4??.?? as penal" c*ar)e %(4? eac* per c*ec# "ransac!on'.
(4??.?? as penal" c*ar)e %(4? eac* per c*ec# "ransac!on'.
>n I Nove$ber 6HH?, a1er realiJin) i"s $is"a#e, pe!!oner accep"ed and *onored "*e
>n I Nove$ber 6HH?, a1er realiJin) i"s $is"a#e, pe!!oner accep"ed and *onored "*e second c*ec# forsecond c*ec# for (7?,???.?? and re0credi"ed "o priva"e responden"s accoun" "*e (4?.?? previousl debi"ed as penal". (7?,???.?? and re0credi"ed "o priva"e responden"s accoun" "*e (4?.?? previousl debi"ed as penal". (riva"e responden" Lil S. (u9ol /led wi"* (asi) RTC a co$plain" for
(riva"e responden" Lil S. (u9ol /led wi"* (asi) RTC a co$plain" for $oral and e:e$plar da$a)es a)ains$oral and e:e$plar da$a)es a)ains"" pe!!oner for dis*onorin) *er c*ec#s despi"e sucienc of *er
pe!!oner for dis*onorin) *er c*ec#s despi"e sucienc of *er funds in "*e ban#. (e!!oner ban# ad$i<ed infunds in "*e ban#. (e!!oner ban# ad$i<ed in i"s answer "*a" priva"e responden" (u9ol opened a &Co$bo Accoun",& a
i"s answer "*a" priva"e responden" (u9ol opened a &Co$bo Accoun",& a co$bina!on of Savin)s Accoun" andco$bina!on of Savin)s Accoun" and Curren" Accoun", wi"* i"s 3andaluon) branc*. 2"
Curren" Accoun", wi"* i"s 3andaluon) branc*. 2" *owever 9us!/ed "*e dis*onor of "*e "wo %' c*ec#s b*owever 9us!/ed "*e dis*onor of "*e "wo %' c*ec#s b clai$in) "*a" a" "*e !$e of
clai$in) "*a" a" "*e !$e of "*eir issuance priva"e responden" (u9ols accoun" was no" e" opera!onal due "o"*eir issuance priva"e responden" (u9ols accoun" was no" e" opera!onal due "o lac# of docu$en"ar reuire$en"s.
lac# of docu$en"ar reuire$en"s. >n Sep"e$ber 6HHI "*e "rial
>n Sep"e$ber 6HHI "*e "rial cour" %RTC' rendered a decision orderin) pe!!oner "o pa priva"e responden"cour" %RTC' rendered a decision orderin) pe!!oner "o pa priva"e responden" (u9ol $oral da$a)es of (6??,???.?? and a<ornes fees of (?,???.??.
(u9ol $oral da$a)es of (6??,???.?? and a<ornes fees of (?,???.??. CA ar$ed RTC decision in "o"o.
CA ar$ed RTC decision in "o"o. ISSUE:
ISSUE:
=N "*e appella"e cour" %CA' erred =N "*e appella"e cour" %CA' erred
in *oldin) "*a" pe!!oner was es"opped fro$ denin) "*e e:is"ence of a &C
in *oldin) "*a" pe!!oner was es"opped fro$ denin) "*e e:is"ence of a &C o$bo Accoun"& and "*e fac" "*a" o$bo Accoun"& and "*e fac" "*a" i"i" was opera!onal a" "*e !$e of "*e issuance of
was opera!onal a" "*e !$e of "*e issuance of "*e c*ec#s"*e c*ec#s in no" *oldin) "*a" "
in no" *oldin) "*a" " *e award b "*e "rial cour" of $oral da$a)es of (6??,???.?? *e award b "*e "rial cour" of $oral da$a)es of (6??,???.?? and a<ornes fees ofand a<ornes fees of (?,???.?? was inordina"el dispropor!ona"e and unconscionable.
(?,???.?? was inordina"el dispropor!ona"e and unconscionable. RULI!.:
RULI!.:
=e canno" sus"ain =e canno" sus"ain pe!!onerpe!!oner..
Al"*ou)* pe!!oner presen"ed evidence before "*e "rial cour" "o prove "*a" "*e arran)e$en" was no" e" opera!onal a" "*e !$e responden" issued "*e "wo c*ec#s, i" failed "o prove "*a" s*e *ad ac"ual #nowled)e "*a" i" was no" e" opera!onal a" " *e !$e s*e issued "*e c*ec#s considerin) "*a" "*e passboo# in *er Savin)s Accoun" alread indica"ed "*e words &Co$bo Deposi" (lan.&
ence, responden" (u9ol *ad 9us!/able reason "o believe "*a" *er accoun"s were eec!vel covered b "*e arran)e$en" durin) "*e issuance of "*e c*ec#s. Ei"*er b i"s own delibera"e ac", or i"s ne)li)ence in causin) "*e &Co$bo Deposi" (lan& "o be placed in "*e passboo#, pe!! oner is considered es"opped "o den "*e e:is"ence of and perfec!on of "*e co$bina!on deposi" a)ree$en" wi"* responden" (u9ol.
A ban# is under obli)a!on "o "rea" "*e accoun"s of i"s deposi"ors wi"* $e!culous care w*e"*er suc* accoun" consis"s onl of a few *undred pesos or of $illions of pesos. Responsibili" arisin) fro$ ne)li)ence in "*e perfor$ance of ever #ind of obli)a!on is de$andable. =*ile pe!!oners ne)li)ence in "*is case $a no" *ave been a<ended wi"* $alice and bad fai"*, never"*eless, i" caused serious an:ie", e$barrass$en" and *u$ilia!on "o priva"e responden" Lil S. (u9ol for w*ic* s*e is en!"led "o recover reasonable $oral da$a)es. RTC and CA decision ar$ed.
Topic 11: Responsibility from negligence
CASE 31
HILII!E !ATI"!AL #A!$% pe&&oner% 's( C"URT "F AEALS )n* LIL+ S( U,"L% respon*ents(
-.(R( !o( 1/01/( September /2% 14
FACTSG
So$e!$e prior "o 7 >c"ober 6HH? priva"e responden" Lil S. (u9ol opened wi"* pe!!oner (NB 3andaluon) an accoun" deno$ina"ed as &Co$bo Accoun",& a co$bina!on of Savin)s Accoun" and Curren" Accoun" in priva"e responden";s business na$e &(u9ol Tradin),& under w*ic* c*ec#s drawn a)ains" priva"e responden"s c*ec#in) accoun" could be c*ar)ed a)ains" *er Savin)s Accoun" s*ould "*e funds in *er Curren" Accoun" be insucien" "o cover "*e value of *er c*ec#s. ence, priva"e responden" was issued b pe!!oner a passboo# on "*e fron" cover of w*ic* was "pewri<en "*e words &Co$bo Deposi" (lan.&
>n 7 and I > c"ober 6HH?, priva"e responden" issued a c*ec# in " *e a$oun" of (7?,???.?? eac* in favor of *er dau)*"er0in0law, Dr. C*arisse 3. (u9ol and dau)*"er 8enus De >ca$po, respec!vel.
=*en issued and presen"ed for pa$en", priva"e responden" *ad sucien" funds in *er Savin)s Accoun". owever, pe!!oner dis*onored *er c*ec# alle)edl for insucienc of funds and debi"ed *er accoun" wi"* (4??.?? as penal" c*ar)e %(4? eac* per c*ec# " ransac!on'.
>n I Nove$ber 6HH?, a1er realiJin) i"s $is"a#e, pe!!oner accep"ed and *onored "*e second c*ec# for (7?,???.?? and re0credi"ed "o priva"e responden"s accoun" "*e (4?.?? previousl debi"ed as penal". (riva"e responden" Lil S. (u9ol /led wi"* (asi) RTC a co$plain" for $oral and e:e$plar da$a)es a)ains" pe!!oner for dis*onorin) *er c*ec#s despi"e sucienc of *er funds in "*e ban#. (e!!oner ban# ad$i<ed in i"s answer "*a" priva"e responden" (u9ol opened a &Co$bo Accoun",& a co$bina!on of Savin)s Accoun" and Curren" Accoun", wi"* i"s 3andaluon) branc*. 2" *owever 9us!/ed "*e dis*onor of "*e "wo %' c*ec#s b clai$in) "*a" a" "*e !$e of "*eir issuance priva"e responden" (u9ols accoun" was no" e" opera!onal due "o lac# of docu$en"ar reuire$en"s.
>n Sep"e$ber 6HHI "*e "rial cour" %RTC' rendered a decision orderin) pe!!oner "o pa priva"e responden" (u9ol $oral da$a)es of (6??,???.?? and a<ornes fees of (?,???.??.
CA ar$ed RTC decision in "o"o. ISSUE:
=N "*e appella"e cour" %CA' erred
in *oldin) "*a" pe!!oner was es"opped fro$ denin) "*e e:is"ence of a &C o$bo Accoun"& and "*e fac" "*a" i" was opera!onal a" "*e !$e of "*e issuance of "*e c*ec#s
in no" *oldin) "*a" " *e award b "*e "rial cour" of $oral da$a)es of (6??,???.?? and a<ornes fees of (?,???.?? was inordina"el dispropor!ona"e and unconscionable.
RULI!.:
=e canno" sus"ain pe!!oner.
Al"*ou)* pe!!oner presen"ed evidence before "*e "rial cour" "o prove "*a" "*e arran)e$en" was no" e" opera!onal a" "*e !$e responden" issued "*e "wo c*ec#s, i" failed "o prove "*a" s*e *ad ac"ual #nowled)e "*a" i" was no" e" opera!onal a" "*e !$e s*e issued "*e c*ec#s considerin) "*a" "*e passboo# in *er Savin)s Accoun" alread indica"ed "*e words &Co$bo Deposi" (lan.&
ence, responden" (u9ol *ad 9us!/able reason "o believe "*a" *er accoun"s were eec!vel covered b "*e arran)e$en" durin) "*e issuance of "*e c*ec#s. Ei"*er b i"s own delibera"e ac", or i"s ne)li)ence in causin) "*e &Co$bo Deposi" (lan& "o be placed in "*e passboo#, pe!!oner is considered es"opped "o den "*e e:is"ence of and perfec!on of "*e co$bina!on deposi" a)ree$en" wi"* responden" (u9ol.
A ban# is under obli)a!on "o "rea" "*e accoun"s of i"s deposi"ors wi"* $e!culous care w*e"*er suc* accoun" consis"s onl of a few *undred pesos or of $ill ions of pesos. Responsibili" arisin) fro$ ne)li)ence in "*e perfor$ance of ever #ind of obli)a!on is de$andable. =*ile pe!!oners ne)li)ence in "*is case $a no" *ave been a<ended wi"* $alice and bad fai"*, never"*eless, i" caused serious a n:ie", e$barrass$en" and *u$ilia!on "o priva"e responden" Lil S. (u9ol for w*ic* s*e is en!"led "o recover reasonable $oral da$a)es. RTC and CA decision ar$ed.
S)mson 's CA( .R !o( 152/6
Fac"sG
(riva"e responden" An)el San"os is "*e lessee of a co$$ercial uni" in 3adri)al Buildin) owned b lessor, SusanaReal" Corpora!on. Lessee-s s"ore occupied "*e said buildi n) for ? ears wi"* "*e con"rac" of lease renewed ever ear. A1er "*e e:pira!on of "*e lease con"rac", lessor infor$ed lessee "*a" "*e won" be renewin) said con"rac" bu" was e:"ended fro$ ul 6H5I "o Dece$ber 6H5I. Lessee con!nued "o occ up said uni" even a1er "*e e:"ension )iven and was infor$ed on Februar 6H54 "*a" "*ere would be an increase in "*e said ren"als pendin) "*e renewal of said con"rac" un!l one of "*e owners of "*e buildin) arrives. erein pe!!oner, Sa$son, en"ers in"o a con"rac" wi"* San"os "o bu said s"ore and "*e ri)*" "o lease "*e co$$ercial uni". San"os $ade a coun"er proposal wi"* one of "*e condi!ons bein) "*a" "*e lease con"rac" be"ween San"os and Susana Real" Corpora!on be i$pliedl renewed since s*e is s!ll wai!n) for one of "*e owners "o arrive on "*e sa$e $on"*. (e!!oner a)reed and si)n "*e con"rac" in w*ic* *e $ade a downpa$en" of
(64?# for "*e value of "*e e:is!n) i$prove$en"s of "*e s"ore and "*e re$ainin) (64?# as balance will be paid upon "*e for$al renewal of "*e lease of conrac" be"ween San"os and Susana Real" Corp. owever, a1er a few $on"*s, pe!!oner received a no!ce "o vaca"e "*e pre$ises of "*e uni" since priva"e responden" failed "o renew said con"rac" of lease. (e!!oner /led an ac!on for da$a)es in w*ic* RTC ruled in favor of "*e pe!!oner. +pon appeal, CA $odi/ed decision of RTC, w*erein i" favored priva"e responden" as CA saw no bad fai"* or fraud in *er dealin)s wi"* pe!!oner and ar$ed wi"* respec" "o RTC-s decision "o re"urn "o appellee said s"ore $a"erials.
2ssueG =>N priva"e responden" e:ercised bad fai"* or fraud in i"s dealin)s wi"* "*e pe!!oner speci/call on "*e con"rac" of lease over "*e sub9ec" pre$ises "*a" *as been i$pliedl renewed b Susana Real"
Rulin)G Cour" ruled in favor of priva"e responden", dis$issin) "*e pe!!on. MroundsG
ri')te respon*ent not g7ilty of fr)7* or b)* f)it8 b clai$in) "*a" "*e con"rac" of lease *as been i$pliedl renewed because pe!!oner was also aware "*a" said con"rac" alread e:pired bu" pendin) renewal un!l one of "*e owners arrives. (e!!oner #nows "*a" as far as "*e lease*old ri)*" i s concerned, i" is a fu"ure ri)*" w*ic* *as e" "o $a"erialiJe un!l suc* !$e "*a" a for$al renewal of "*e said con"rac" be"ween San"os and Susana Real" *as been acco$plis*ed.
e&&oner f)ile* to e9ercise *7e *iligence in verifin) /rs" "*e s"a"us of "*e responden"-s lease w*en *e *ad ever oppor"uni" "o do so. e could *ave veri/ed i" wi"* Susana Real" bu" was no" able "o do so. e canno" clai$ *e *as been deceived.
PEDRO D. DIOQUINO VS. LAUREANO G.R. No. L-25906 May 28, 1970 FA!S"
A##o$%&y P&'$o D(o)*(%o (+ #& o%&$ o a /a$.
O% Ma$/ 1, 196, & &%# #o #& o(/& o #& MVO, Ma+a#&, #o $&3(+#&$ #& +a4&.
& 4&# #& '&&%'a%# F&'&$(/o La*$&a%o, a a#$o o(/&$, o a+ a(#(%3 o$ a &&%&y #o #a& (4 #o #& o(/& o #& P$o:(%/(a o44a%'&$, P, Ma+a#&.
A##o$%&y D(o)*(%o $&)*&+#&' #& '&&%'a%# F&'&$(/o La*$&a %o #o (%#$o'*/& (4 #o o%& o #& /&$+ (% #& MVO O(/&, o /o*' a/((#a#& #& $&3(+#$a#(o% o (+ /a$.
D&&%'a%# La*$&a%o $o'& o% #& /a$ o A##y. D(o)*(%o o% (+ ay #o #& P.. ;a$$a/+ a# Ma+a#&. While about to reach their destination, the car was stoned by some 'mischievous boys,' and its windshield was broken.
D&&%'a%# F&'&$(/o La*$&a%o /a+&' #& oy+ a%' & a+ a& #o /a#/ o%& o #&4. !& oy a+ #a&% #o A##y. D(o)*(%o <a%'= a'4(##&' a:(%3 #$o% #& +#o%& #a# $o& #& /a$>+ (%'+(&'. !& a(%#( a%' #& '&&%'a %# F&'&$(/o La*$&a%o (# #& oy $&#*$%&' #o #& P.. a$$a/+ a%' #& a#&$ o #& oy a+ /a&', *# %o +a#(+a/#o$y a$$a%3&4&%#+ <&$&= 4a'& ao*# #& 'a4a3& #o #& (%'+(&'.?
!& '&/(+(o% %o o% a&a, #& '&&%'a%# F&'&$(/o La*$&a%o $&*+&' #o (& a%y /a$3&+ a3a(%+# #& oy a%' (+ a$&%#+ &/a*+& & #o*3# #a# #& +#o%&-#$o(%3 a+ merely accidental and that it was due to force majeure.
F&'&$(/o La*$&a%o $&*+&' #o ay #& (%'+(&' (4+& a%' /a&%3&' #a# #& /a+& & $o*3# #o /o*$# o$ *'(/(a a'*'(/a#(o%.
!&$& (+ %o )*&+#(o% #a# #& a(%#( #$(&' #o /o%:(%/& #& '&&%'a%# F&'&$(/o La*$&a%o *+# #o ay #& :a*& o #& (%'+(&' a%' & &:&% /a4& #o #& &@#&%# o a+(%3 #& (& #o /o%:(%/& &$ *+a%' #o +&##& #& 4a##&$ a4(/ay *# #& '&&%'a%# F&'&$(/o La*$&a%o $&*+&' #o 4a& a%y +&##&4&%#, /(%3(%3 <#o= #& &(& #a# & /o*' %o# & &' (a& &/a*+& a 4(%o$ /(' #$& a +#o%& a//('&%#ay o% #& (%'+(&' a%' #&$&o$&, the same was due to force majeure .
ISSUE"
I+ F&'&$(/o La*$&a%o (a& o$ #& ay4&%# o #& (%'+(&' o A##y D(o)*(%o
RULING"
No. !& a &(%3 a# (# (+, +*/ a &(& o% #& a$# o '&&%'a%# F&'&$(/o La*$&a%o a+ *+#((&'. !& &@$&++ a%3*a3& o Art. 1174 of the present ivil ode which is a restatement of Art. 11!" of the #ld ivil ode, &@/&# o$ #& a''(#(o% o #& %a#*$& o a% o(3a#(o% $&)*($(%3 #& a++*4#(o% o $(+, /o4&+ +*/ a /o%/*+(o%.
I# $&a'+ #*+" "Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be, foreseen, or which, though
foreseen were inevitable."
E:&% *%'&$ #& o' (:( o'& #&%, a+ +#$&++&' y *+ (% #& ($+# '&/(+(o% 'a#(%3 a/ #o 1908, (% a% o(%(o% y B*+#(/& Maa, #& $*& a+ &-+&##&' #a# (% #& a+&%/& o a &3a $o:(+(o% o$ a% &@$&++ /o:&%a%#, ?%o o%& +o*' & &' #o a//o*%# o$ o$#*(#o*+ /a+&+.?
?C!a# +o4& &@#$ao$'(%a$y /($/*4+#a%/& (%'&&%'&%# o #& ( o #& o(3o$, o$ o (+ &4oy&&+, (+ a% essential element of a caso fortuito.?
I (# /o*' & +o% #a# +*/ (%'&&' a+ #& /a+&, (a((#y (+ $*&' o*#. !&$& (+ %o $&)*($&4&%# o ?'((3&%/& &yo%' a# *4a% /a$& a%' o$&+(3# /a% $o:('&.?
!& &$$o$ /o44(##&' y #& o&$ /o*$# (% o'(%3 '&&%'a%# F&'&$(/o La*$&a%o (a& a&a$+ #o & #*+ o:(o*+. I#+ o% (%'(%3+ o a/# $&& #& 4o#(o% #a# & +o*' & 4a'& #o $&+o%' (% 'a4a3&+ #o #& a(%#( o$ #& $o&% (%'+(&'. a# a&%&' a+ /&a$y *%o$&+&&%. I# a+ a o$#*(#o*+ &:&%# $&+*#(%3 (% a o++ (/ 4*+# & o$%& y #& o%&$ o #& /a$.
!& :&$y o$'(%3 o #& a '(+&+ a%y 'o*# #a# a# (+ #&$&(% /o%#&4a#&' (+ #& $&+*#(%3 (a((#y &:&% ( /a*+&' y a o$#*(#o*+ &:&%# &$& #& a$#y /a$3&' 4ay & /o%+('&$&' a+ a:(%3 a++*4&' #& $(+ (%/('&%# (% #& %a#*$& o #& o(3a#(o% #o & &$o$4&'. I# o*' & a% a$o%#, %o# o%y #o #& o3(/ *# #o #& $&a(#(&+ o #& +(#*a#(o%, ( (% #& (3# o a# #$a%+($&', a+ o*%' y #& o&$ /o*$#, '&&%'a%# F&'&$(/o La*$&a%o /o*' & &' a+ o*%' #o a++*4& a $(+ o #(+ %a#*$&. !&$& a+ %o +*/ o(3a#(o% o% (+ a$#.
!& '&/(+(o% o #& o&$ /o*$# o No:&4&$ 2, 1965(%+oa$ a+ (# o$'&$+ '&&%'a%# F&'&$(/o La*$&a%o #o ay a(%#( #& a4o*%# o P0,000.00 a+ 'a4a3&+ *+ #& ay4&%# o /o+#+, (+ &$&y $&:&$+&'. I# (+ a($4&' (%+oa$ a+ (# '(+4(++&' #& /a+& a3a(%+# #& o#&$ #o '&&%'a%#+, B*a%(#a
La*$&a%o a%' A('a '& La*$&a%o, a%' '&/a$&' #a# %o 4o$a 'a4a3&+ +o*' & aa$'&' #& a$#(&+. (eople vs (>7 Fallorina M.R. No. 677I 3arc* I, ??I Fac"sG
A" abou" G7? p.$. of Sep"e$ber , 6HH5, 8incen" oro9oro, an eleven0ear old $inor and "*e "*ird c*ild of 8icen"e and Felicisi$a oro9oro, residin) a" Si!o 3il i"ar, Br). Ba*a Toro, (ro9ec" 5, ueJon Ci", as#ed per$ission fro$ *is $o"*er Felicisi$a if *e could pla ou"side. S*e a)reed. To)e"*er wi"* *is pla$a"e =*ilcon OBudd*aP Rodri)ueJ, 8incen" plaed wi"* *is #i"e on "op of "*e roof of an abandoned carinderia beside "*e road.
Beside "*e carinderia was a bas#e"ball cour", w*ere a four"een0ear old wi"ness Ricardo Salvo and *is "*ree friends, were plain) bas#e"ball. Ricardo *eard "*e fa$iliar sound of a $o"orccle co$in) fro$ "*e $ain road across "*e bas#e"ball cour". Co)niJan" "o Ricardo of "*e appellan", (>7 Ferdinand Fallorina, a (*ilippine Na!onal (olice %(N(' ocer, de"ailed in "*e Trac 3ana)e$en" Mroup %T3M', #new "*a" *e ab*orred #ids plain) on "*e roof, since one of *is friends was previousl been scolded b "*e appellan" before. Ricardo called on 8incen" and =*ilcon "o co$e down fro$ "*e roof. =*en (>7 Fallorina saw "*e$, "*e for$er s"opped *is $o"orccle, *e s*ou"ed and bad$ou"*ed a" "*e$. A1er *earin) "*e s*ou"s of "*e appellan", =*ilcon rus*ed "o 9u$p o f ro$ "*e roof w*ile 8incen" was lin) on *i s s"o$ac* on "*e roof Qin) *is #i"e. =*en *e *eard "*e appellan"-s s*ou"s, 8inc en" s"ood up and loo#ed a" "*e la<er. As soon as 8incen" "urned *is bac#, read "o )e" down fro$ "*e roof, suddenl, "*e appellan" poin"ed "*e .I4 caliber pis"ol "owards "*e direc!on of 8incen" and /red a s*o". 8incen" fell fro$ "*e roof, lin) pros"ra"e near "*e canal beside "*e abandoned carinderia and "*e bas#e"ball cour".
T*e appellan" approac*ed 8incen" and carried "*e la<er-s *apless bod in a wai!n) "riccle and brou)*" *i$ "o "*e ueJon Ci" Meneral ospi"al. 8incen" was pronounced dead on arri val caused b a sin)le )uns*o" wound in "*e *ead.
2ssuesG
%a' =*e"*er or no" "*e appellan" is e:e$p" fro$ cri$inal liabili"
%b' =*e"*er or no" "*e appellan" can ose" "*e a))rava!n) circu$s"ance of "a#in) advan"a)e of public posi!on fro$ a $i!)a!n) circu$s"ance of *is volun"ar surrender
eldG
T*e >ce of "*e Solici "or Meneral %>SM' ci"es "*a" "*e basis for e:e$p!on fro$ a cri$inal liabili" under Ar!cle 6, para)rap* I of "*e Revised (enal Code %R(C', is "*e co$ple"e absence of in"en" and ne)li)ence on "*e par" of "*e accused. For "*e accused "o be )uil" for a felon, i" $us" be co$$i<ed ei"*er wi"* cri$inal in"en" or wi"* faul" or ne)li)ence.
T*usl, "*e ele$en"s of e:e$p!n) circu$s"ances are %6' a person is perfor$in) a lawful ac"@ %' wi"* due care@ %7' *e causes an in9ur "o ano"*er b $ere acciden"@ and %I' wi"*ou" an faul" or in"en!on of causin) i". 2n "*e case a" bar, "*e Cour" a uo erred in ineui"abl apprecia!n) e:culpa"or and inculpa"or fac"s and circu$s"ances w*ic* s*ould *ave been considered in favor of "*e accused. T*e cour" also failed "o apprecia"e "*e $i!)a!n) circu$s"ance of volun"ar surrender in favor of "*e accused since i" was onl a1er "*ree das "*a" "*e appellan" )ave *i$self up and surrendered *is service /rear$. And las"l, "*e cour" considered "*e a))rava!n) circu$s"ance of "a#in) advan"a)e of *is posi!on b "*e accused.
>n anuar 6H, 6HHH, "*e "rial cour" rendered 9ud)$en" convic!n) "*e appellan"0accused of $urder, uali/ed b "reac*er and a))rava"ed b abuse of public posi!on. T*e "rial cour" did no" apprecia"e in favor of "*e appellan" "*e $i!)a!n) circu$s"ances of volun"ar surrender
T*e Re)ional Trial Cour" of ueJon Ci", Branc* H4, found "*e accused (>7 Ferdinand Fallorina Fernando M+2LT beond reasonable doub" of "*e cri$e of $urder de/ned and penaliJed b Ar!cle I5 of "*e R(C, as a$ended b "*e Republic Ac" No. 4H, and in view of "*e presence of " *e a))rava!n) circu$s"ance of "a#in) advan"a)e b "*e accused of *is public posi!on %par. 6, Ar". 6I, R(C'. ence, "*e accused is *ereb ordered "o inde$nif "*e *eirs of la"e 8incen" oro9oro, r. "*e a$oun"s of ac"ual da$a)es of (IH,6I.?? %paid for funeral services'@ (4?,???.?? for $oral da$a)es@ (4,???.?? as e:e$plar da$a)es@ and (4?,???.?? as dea"* inde$ni". T*e cour" a uo sen"enced "*e appellan" "o suer "*e Dea"* (enal".
LA 3ALL>RCA 8S CA %6 SCRA 7H' Fac"sG
(lain!s *usband and wife, "o)e"*er wi"* "*eir "*ree $inor c*ildren, na$el, 3ila)ros %67', Rauel %I' and Fe %' boarded "*e (a$busco Bus No. 74 bearin) pla"e T(+ No. 4 owned and opera"ed b La 3allorca a" San Fernando, (a$pan)a, bound for Anao, 3e:ico, (a$pan)a. A" "*e !$e, "*e were carrin) wi"* "*e$ four pieces of ba))a)es con"ainin) "*eir personal belon)in). T*e conduc"or %*alf0bro"*er of Bel"ran' of "*e bus issued "*ree !c#e"s %E:*s. A, B, C' coverin) "*e full fares of "*e plain! and "*eir eldes" c*ild, 3il a)ros. No fare was c*ar)ed on Rauel and Fe, since bo"* were below "*e *ei)*" a" w*ic* fare is c*ar)ed in accordance wi"* "*e appellan";s rules and re)ula!ons.
A1er abou" an *our;s "rip and a1er Bel"ran-s fa$il )o" o, 3ariano Bel"ran wen" bac# "o "*e bus "o )e" "*e ba))a)e *e *ad le1 under one of "*e sea"s near "*e door w*ile "*e res" was wai!n) on a s*aded area, *e did no" no!ce "*a" Rauel was followin) *i$. =*ile said 3ariano Bel"ran was on "*e runnin) board of "*e bus wai!n) for "*e conduc"or "o *and *i$ *is baon), "*e bus, w*ose $o"or was no" s*u" o w*ile unloadin), suddenl s"ar"ed $ovin) forward, eviden"l "o resu$e i"s "rip, no"wi"*s"andin) "*e fac" "*a" "*e conduc"or *as no" )iven "*e driver "*e cus"o$ar si)nal "o s"ar", since said conduc"or was s!ll a<endin) "o "*e ba))a)e le1 be*ind b 3ariano Bel"ran. 2nciden"all, w*en "*e bus was a)ain placed in"o a co$ple"e s"op, i" *ad "ravelled abou" "en $e"ers fro$ "*e poin" w*ere "*e plain!s *ad )o<en o.
Sensin) "*a" "*e bus was a)ain in $o!on, 3ariano Bel"ran i$$edia"el 9u$ped fro$ "*e runnin) board wi"*ou" )eUn) *is baon) fro$ "*e conduc"or. e landed on "*e side of "*e road al$os" in fron" of "*e s*aded place w*ere *e le1 *is wife and c*ildren. A" "*a" precise !$e, *e saw people be)innin) "o )a"*er around "*e bod of a c*ild lin) pros"ra"e on "*e )round, *er s#ull crus*ed, and wi"*ou" life. T*e c*ild was none o"*er "*an *is dau)*"er Rauel, w*o was run over b "*e bus in w*ic* s*e rode earlier "o)e"*er wi"* *er paren"s.
2ssueG
=*e"*er or no" La 3allorca is liable for "*e ne)li)ence of i"s driver and for "*e dea"* of Bel"ran-s dau)*"er. eldG
La 3allorca is liable for da$a)es. 2" was poin"ed ou" "*a" even "*ou)*, 3. Bel"ran-s fa$il alread ali)*"ed fro$ "*e bus, "*e fac" "*a" Bel"ran wen" bac# "o "*e bus "o re"rieve *is baon), "*e rela!on of
carrierpassen)er rela!on be"ween La 3allorca and Bel"ran s!ll subsis". 2" *as been reco)niJed as a rule "*a" "*e rela!on of carrier and passen)er does no" cease a" "*e $o$en" "*e passen)er ali)*"s fro$ "*e carrier;s ve*icle a" a place selec"ed b "*e carrier a" "*e poin" of des!na!on, bu" con!nues un!l "*e passen)er *as *ad a reasonable !$e or a reasonable oppor"uni" "o leave "*e carrier;s pre$ises. And, w*a" is a
reasonable !$e or a reasonable dela wi"*in "*is rule is "o be de"er$ined fro$ all "*e circu$s"ances. 2n "*e circu$s"ances, i" canno" be clai$ed "*a" "*e carrier;s a)en" *ad e:ercised "*e &u"$os" dili)ence& of a &ver cau!ons person& reuired b Ar!cle 644 of " *e Civil Code "o be observed b a co$$on carrier in "*e disc*ar)e of i"s obli)a!on "o "ranspor" safel i"s passen)ers. 2n "*e /rs" place, "*e driver, al"*ou)* s"oppin) "*e bus, never"*eless did no" pu" o "*e en)ine. Secondl, *e s"ar"ed "o run "*e bus even before "*e bus conduc"or )ave *i$ "*e si)nal "o )o and w*ile " *e la<er was s!ll unloadin) par" of "*e ba))a)es of "*e
and "*e are, "*erefore, "o be considered s!ll as passen)ers of "*e carrier, en!"led "o "*e pro"ec!on under "*eir con"rac" of carria)e.
Bu" even assu$in) ar)uendo "*a" "*e con"rac" of carria)e *as alread "er$ina"ed, *erein pe!!oner can be *eld liable for "*e ne)li)ence of i"s driver, as ruled b "*e Cour" of Appeals, pursuan" "o Ar!cle 65? of " *e Civil Code. (ara)rap* of "*e co$plain", w*ic* reads V
T*a" aside fro$ "*e aforesaid breac* of con"rac", "*e dea"* of Rauel Bel"ran, plain!s; dau)*"er, was caused b "*e ne)li)ence and wan" of e:ercise of "*e u"$os" dili)ence of a ver cau!ous person on "*e par" of "*e defendan"s and "*eir a)en", necessar "o "ranspor" plain!s and "*eir dau)*"er safel as far as *u$an care and foresi)*" can provide in "*e opera!on of "*eir ve*icle.
T*e driver did no" e:ercise u"$os" dili)ence reuired of *i$@ *ence, pe!!oner $us" be ad9ud)ed peculiarl liable for "*e dea"* of "*e c*ild Rauel Bel"ran.
A$%A& #&$()%#& A&* *++-#/+& #(#(A%#&, :+. 0%-%%&+ #//+(%A-%&+(&A%#&A- A&2
3.(. &o. 1"567 April 6", 6!! 8A$9
On February 24, 1999, PCIBANK filed a complaint for a um of money a!aint petitioner A"IAKON"#$%K#& On 'ariou occaion, A"IAKON"#$%K# obta ined %&"& dollar denominated credit accommodation from PCIBANK in t(e amount of Four )illion Four *undred +i!(ty "e'en #(ouand %&"& dollar %"-4,4./,000&00& #(e promiory n ote i!ned by A"IAKON"#$%K# (oe'er (a'e remained not fully paid depite (a'in! become due and demandable& PCIBANK made repeated 'erbal and rit ten demand ere made upon A"IAKON"#$%K#, but to no a'ail& "econdly, PCIBANK filed in t(e ame c omplain t(at A"IAKON"#$%K# i !uilty of fraud in contractin! t(e debt and3or in t(e performance of it& PCIBANK a urpried to learn t(at A"IAKON"#$%K# (ad lon! a!o collected t(e contract proceed for p ayment to PCIBANK& *oe'er, to date, it (a yet to turn o'er t(ee proceed to PCIBANK& ore, PCIBANK learned t(at t(e contract proc eed ere ued by A"IAKON"#$%K# for it on purpoe& #(i act a ube5u ently confirmed by )r& Napoleon 6arcia, 7ice Preident for Finance of
A"IAKON"#$%K#&
#(e trial co urt ruled in fa'or of PCIBANK orderin! A"IAKON"#$%K# to pay t(e amount it oed plu dama! e and interet& )ean(ile, on Au!ut 2/, 1999, defendant A"IAKON"#$%K# filed it Aner t(at t( ey failed to pay due to t (e alle!ed e'ere financial and currency crii, (ic( (it t(e P(ilippine in 8uly 199/, (ic( ad'erely affected and ultimately put it out of buine&
On 8anuary 24, 2000, plaintiff PCIBANK filed a 'erified )otion for "ummary 8ud!ment, t(erein contendin! t(at t(e defene interpoed by t(e defendant are (am and contri'ed, t(at t(e alle!ed financial crii pleaded in t(e Aner i not a fortuitou e'ent t(at ould ecue debtor from t(eir loan obli!ation, nor i it an eemptin! circumtance under Article 12:2 of t(e Ne Ci'il Code (ere, a (ere, t(e ame i attended by bad fait(&
Iue; I A"IAKON"#$%K#< defene tenable=
*+>?; NO
#(e defendant mut (o t(at (e (a a bona fide defene to t(e action, one (ic( (e may be able to etabli(& It mut be a plauible !round of defene, omet(in! fairly ar!uable and of a ubtantial c(aracter& #(i (e mut (o by affida'it or ot(er proof& In t(e preent cae, A"IAKON"#$%K# clearly (a no e'idence to pro'e (i claim&
#(e @petitioner cannot e'en find olace in Article 12:: and 12:/ of t(e Ne Ci'il Code for, a declared by our "upreme Court ince it i applicable only to obli!ation to do, and not obli!ation to !i'e& An obli!ation to do include all ind of or or er'ice (ile an obli!ation to !i'e i a pretation (ic( conit in t(e deli'ery of a mo'able or an immo'able t(in! in order to create a real ri!(t, or for t(e ue of t(e recipient, or for it imple poeion, or in order to return it to it oner&
FIL-ESTATE VS GO (GR 165164, August 17, 2007) Facts:
On !c!"#!$ 2%, 1%%5, &!t't'n!$ F'-Estat! *$&!$t'!s, Inc+ !nt!$! 'nt a cnt$act t s! a cn"'n'u" un't t $!s&n!nt s&us!s Gna an .nsu! G+ T/! s&us!s &a' a tta *+4 t/! u cnt$act &$'c! s!t at *+6+
*!t't'n!$ a'! t !3!& t/! cn"'n'u" &$!ct+ T/! s&us!s !"an! t/! $!un t/! a"unt t/! &a', &us 'nt!$!st+ /!n &!t't'n!$ ' nt $!un t/! s&us!s, t/! att!$ '! a c"&a'nt aga'nst &!t't'n!$ $ $!'"#u$s!"!nt *+6 &us 'nt!$!st, att$n!s !!s, an !8&!ns!s 't'gat'n+
*!t't'n!$ ca'"! t/at $!s&n!nts /a n caus! act'n s'nc! t/! !a 'n t/! cnst$uct'n t/! cn"'n'u" 9as caus! # t/! 'nanc'a c$'s's t/at /'t t/! As'an $!g'n, a $tu'tus !3!nt 3!$ 9/'c/ &!t't'n!$ /a n cnt$+
Issu!:
O F'-Estat! can !8cu&at! 'ts! $" 'a#''t 'n 'ts ca'" cas $tu't #as! n t/! 1%%7 As'an
F'nanc'a .$'s's; O Compiled by: FCSB MYCK
<!:
In n$agn L!'su$! 3s+ .u$t A&&!as, t/! As'an 'nanc'a c$'s's 'n 1%%7 's nt a"ng t/! $tu'tus !3!nts cnt!"&at! un!$ A$t'c! 1174 t/! .'3' .!+
T/! As'an 'nanc'a c$'s's 'n 1%%7 9as nt un$!s!!a#! an #!n t/! cnt$ a #us'n!ss c$&$at'n+
<9!3!$, a $!a !stat! !nt!$&$'s! !ngag! 'n t/! &$!-s!'ng cn"'n'u" un'ts 's cnc!! a "ast!$ 'n &$!ct'ns n c""'t'!s an cu$$!nc "3!"!nts an #us'n!ss $'s=s+ T/! uctuat'ng "3!"!nt t/! */''&&'n! &!s 'n t/! $!'gn !8c/ang! "a$=!t 's an !3!$a ccu$$!nc!, an uctuat'ns 'n cu$$!nc !8c/ang! $at!s /a&&!n !3!$ a, t/us, nt an 'nstanc! cas $tu't+
T/! !a 'n t/! cnst$uct'n t/! #u''ng 9as nt att$'#uta#! t t/! As'an 'nanc'a c$'s's 9/'c/ /a&&!n! 'n 1%%7 #!caus! &!t't'n!$ ' nt !3!n sta$t t/! &$!ct 'n 1%%5 9/!n 't s/u /a3! n!, s t/at 't cu /a3! 'n's/! 't 'n 1%%7, as st'&uat! 'n t/! cnt$act+
>n!$ S!ct'n 2 *++ + %57, t/! $!s&n!nts a$! !nt't! t $!'"#u$s!"!nt #ut n t t/! *+4t/at t/! /a3! &a'+
VI.TORIAS *LATERS ASS+, I.+, ET AL+ VS+ VI.TORIAS ILLIG .O+, I.+ (G+R+ + L-664? @u 25,
1%55) FA.TS:
T/! &!t't'n!$s V'ct$'as *ant!$s Assc'at'n, Inc+ an $t/ !g$s *ant!$s Assc'at'n, Inc+ an t/! $!s&n!nt V'ct$'as ''ng .+, Inc !nt!$! 'nt a "''ng cnt$act 9/!$!# t/! st'&uat! a 0-!a$ &!$' 9't/'n 9/'c/ t/! suga$ can! &$uc! # t/! &!t't'n!$ 9u #! "'! # t/! $!s&n!nt c!nt$a+
T/! &a$t'!s as st'&uat! t/at 'n t/! !3!nt $c! "au!$!, t/! cnt$act s/a #! !!"! sus&!n! u$'ng t/'s &!$'+ T/! &!t't'n!$ a'! t !'3!$ t/! suga$ can! u$'ng t/! u$ !a$s t/! @a&an!s! ccu&at'n an t/! t9 !a$s at!$ '#!$at'n 9/!n t/! "' 9as #!'ng $!#u't $ a tta s'8 !a$s+
ISS>E:
.an t/! &!t't'n!$s #! c"&!! t !'3!$ suga$ can! $ s'8 "$! !a$s at!$ t/! !8&'$at'n t/! 0- !a$ &!$' t "a=! u& $ 9/at t/! a'! t !'3!$ t t/! $!s&n!nt;
R>LIG:
+ F$tu'tus !3!nt $!'!3!s t/! #'g$ $" u''ng t/! cnt$actua #'gat'n un!$ A$t'c! 1174 t/!
.'3' .!+ T/! st'&uat'n 'n t/! cnt$act t/at 'n t/! !3!nt $c! "a!u$! t/! cnt$act s/a #! !!"! sus&!n! u$'ng t/! sa' &!$' !s nt "!an t/at t/! /a&&!n'ng an t/s! !3!nts st&s t/! $unn'ng t/! &!$' ag$!! u&n+ It n $!'!3!s t/! &a$t'!s $" t/! u'"!nt t/!'$ $!s&!ct'3! #'gat'ns u$'ng t/at t'"!- t/! &!t't'n!$ $" !'3!$'ng t/! suga$ can! an t/! $!s&n!nt c!nt$a $" "''ng+ In $!$ t/at t/! $!s&n!nt c!nt$a "a #! !nt't! t !"an $" t/! &!t't'n!$ t/! u'"!nt t/!'$
&a$t 'n t/! cnt$acts, t/! att!$ "ust /a3! #!!n a#! t &!$$" 't #ut a'! $ $!us! t s an nt 9/!n t/! 9!$! &$!3!nt! # $c! "a!u$! suc/ as 9a$+ T $!u'$! t/! &!t't'n!$s t !'3!$ t/! suga$ can! 9/'c/ t/! a'! t !'3!$ u$'ng t/! s'8 !a$s 's t !"an $" t/!" t/! u'"!nt an #'gat'n, 9/'c/ 9as '"&ss'#! &!$$"anc! u$'ng t/! t'"! 't #!ca"! u!+ !"t!n!tu$ ! '"&ss'#''a+ T/! $!s&n!nt c!nt$a nt #!'ng !nt't! t !"an $" t/! &!t't'n!$s t/! &!$$"anc! t/! att!$s &a$t t/! cnt$acts un!$ t/s! c'$cu"stanc!s cannt at!$ n !"an 'ts u'"!nt+ T/!
&!$$"anc! 9/at t/! a9 /as 9$'tt!n cannt #! !"an! an $!u'$!+ T/! &$a!$ t/at t/! &!t't'n!$s #! c"&!! t !'3!$ suga$ cannt $ s'8 !a$s "$! t "a=! u& $ 9/at t/! a'! t !'3!$, t/! u'"!nt 9/'c/ 9as '"&ss'#!, g$ant!, 9u 'n !!ct #! an !8t!ns'n t/! t!$"s t/! cnt$acts !nt!$! 'nt # an #!t9!!n t/! &a$t'!s+
Ace0A)ro dev v Ca FACTSG
(e!!oner Ace0A)ro Develop$en" Corp. %Ace0A)ro' *ad been cleanin) so1 drin# bo<les and repairin) wooden s*ells for Cos$os, renderin) i"s services wi"*in "*e co$pan pre$ises in San Fernando, (a$pan)a. T*e par!es en"ered in"o service con"rac"s w*ic* "*e renewed ever ear. >n anuar 65, 6HH?, "*e si)ned a con"rac" coverin) "*e period anuar 6, 6HH? "o Dece$ber 76, 6HH?. >n April 4, 6HH?, /re bro#e ou" in priva"e responden";s plan", des"roin), a$on) o"*er places, "*e area w*ere pe!!oner did i"s wor#. As a resul", pe!!oner;s wor# was s"opped.(riva"e responden" was "er$ina!n) "*eir con"rac" wi"* Ace0A)ro. (e!!oner e:pressed surprise a" "*e "er$ina!on of "*e con"rac" and reues"ed priva"e responden" "o reconsider i"s decision and allow pe!!oner "o resu$e i"s wor#. As i" received no repl fro$ priva"e responden" and infor$ed i"s e$ploees of "*e "er$ina!on of "*eir e$plo$en". (e!!oner brou)*" "*is case a)ains" priva"e responden" for breac* of con"rac" and da$a)es in "*e Re)ional Trial Cour" of 3alabon. 2" co$plained "*a" "*e "er$ina!on of i"s service con"rac" was ille)al and arbi"rar and "*a", as a resul", i" s"ood "o lose pro/"s and "o be *eld liable "o i"s e$ploees for bac#wa)es, da$a)es andor separa!on pa. Re)ional Trial Cour", /ndin) priva"e responden" )uil" of breac* of con"rac" and orderin) i" "o pa da$a)es, priva"e responden" appealed "o "*e Cour" of Appeals w*ic* reversed "*e "rial cour";s decision and dis$issed "*e co$plain" for lac# of $eri".
2SS+EG
=>N "*is suspension of wor# due "o force majeure did no" $eri" an au"o$a!c e:"ension of "*e period of "*e a)ree$en"
R+L2NMG
T*e s!pula!on "*a" in "*e even" of a for"ui"ous even" or force $a9eure "*e con"rac" s*all be dee$ed suspended durin) "*e said period does no" $ean "*a" "*e *appenin) of an of "*ose wen" s"ops "*e runnin) of "*e period "*e con"rac" *as been a)reed upon "o run. 2" onl relieves "*e par!es fro$ "*e ful/ll$en" of "*eir respec!ve obli)a!ons durin) "*a" !$e.
T*e suspension of wor# under "*e con"rac" was brou)*" abou" b force majeure. T*erefore, "*e period durin) w*ic* wor# was suspended did no" 9us!f an e:"ension of "*e "er$ of "*e con"rac". For "*e fac" is "*a" "*e con"rac" was sub9ec" "o a resolu"or period w*ic* relieved "*e par!es of "*eir respec!ve obli)a!ons bu" did no" s"op "*e runnin) of "*e period of "*eir con"rac".
As alread s"a"ed, because "*e suspension of wor# was due "o force majeure, "*ere was no 9us!/ca!on for pe!!oner;s de$and for an e:"ension of "*e "er$s of "*e con"rac". (riva"e responden" was 9us!/ed in insis!n)
"*a" a1er "*e e:pira!on of "*e con"rac", "*e par!es $us" ne)o!a"e a new one as "*e *ad done ever ear since "*e s"ar" of "*eir business rela!ons in 6HH.
C+AT>N v. CA
FACTS:Rebecca Salud, 9oined b *er *usband Rolando Salud, i ns!"u"ed a sui" for foreclosure of real es"a"e $or")a)e wi"* da$a)es a)ains" pe!!oner 3ansue"o Cua"on and *is $o"*er, Conc*i"a Cua"on, wi"* "*e Re)ional Trial Cour" of Meneral San"os Ci", Branc* 74, doc#e"ed as S(L. Civil Case No. 74 H.
3ansue"o Cua"on e:ecu"ed $or")a)e in favor of Rebecca Salud wi"*ou" e:pressl s"a!n) "*a" *e was $erel ac!n) as a represen"a!ve of Conc*i"a Cua"on, in w*ose na$e "*e $or")a)ed lo" was !"led.
RTC0 Declared "*e $or")a)ed cons!"u"ed void, ordered pe!!oner "o pa Rebecca Salud, in"er alia, "*e loan secured b "*e $or")a)e in "*e a$oun" of >ne 3illi on (esos plus a "o"al (6?,???.?? represen!n) in"eres"s of 6?X and 5X per $on"* for "*e period Februar 6HH "o Au)us" 6HH and >rderin) defendan", 3ansue"o Cua"on, "o pa A<orne;s fees of (4,???.?? in favor of "*e plain!, Rebecca Salud and "o pa "*e cos" of "*is sui".
CA0 Ar$ed "*e 9ud)$en" of "*e "rial cour".
ISSUE:=*e"*er "*e 5X and 6?X $on"*l in"eres" ra"es i$posed on "*e one0$illion0peso loan obli)a!on of pe!!oner "o responden" Rebecca Salud are valid.
HELD:No. T*e 6?X and 5X in"eres" ra"es per $on"* on "*e one0$illi on0peso loan of pe!!oner are even *i)*er "*an "*ose previousl invalida"ed cases b "*e Cour". Accordin)l, "*e reduc!on of said ra"es "o 6X per annu$ is fair and reasonable. T*e canno" be ra!/ed nor "*e ri)*" "o se" up "*eir ille)ali" as a defense be waived.
S!pula!ons au"*oriJin) iniui"ous or unconscionable in"eres"s are con"rar "o $orals %'contra bonos mores' ', if no" a)ains" "*e law. +nder Ar!cle 6I?H of "*e Civil Code, "*ese con"rac"s are ine:is"en" and void fro$ "*e be)innin).
T*e in"eres" of 6X per annu$ i$posed b "*e Cour" %in lieu of "*e invalida"ed 6?X and 5X per $on"* in"eres" ra"es' on "*e one0$illion0peso loan s*ould be co$pu"ed fro$ "*e da"e of "*e e:ecu!on of "*e loan on >c"ober 76, 6HH6 un!l /nali" of "*is decision. A1er "*e 9ud)$en" beco$es /nal and e:ecu"or un!l "*e obli)a!on is sa!s/ed, "*e a$oun" due s*all fur"*er earn in"eres" a" 6X per ear.
=EREF>RE, in view of all "*e fore)oin), "*e ins"an" pe!!on is MRANTED. T*e Au)us" 76, ??6 Decision of "*e Cour" of Appeals in CA0M.R. C8 No. 4I64, w*ic* ar$ed "*e Deci sion of "*e Re)ional Trial Cour" of Meneral San"os Ci", Branc* 74, in S(L. Civil Case No. 74H, is 3>D2F2ED. T*e in"eres" ra"es of 6?X and 5X per $on"* i$posed b "*e "rial cour" is reduced "o 6X per annu$, co$pu"ed fro$ "*e da"e of "*e e:ecu!on of "*e loan on >c"ober 76, 6HH6 un!l /nali" of "*is decision. A1er "*e 9ud)$en" beco$es /nal and e:ecu"or un!l "*e obli)a!on is sa!s/ed, "*e a$oun" due s*all fur"*er earn in"eres" a" 6X per ear.
LIA LA VS OLB*I. SAILL .O (GR L-0771, 2? a 1%?4) Facts:
On 7 S!&t!"#!$ 1%57, L'a" La9 (&a'nt') an! *10,000+00, 9't/ut 'nt!$!st, t O"&'c Sa9"' .+ an E'n L!! ./', as t/! att!$s "anag'ng &a$tn!$ (!!nants)+ T/! an #!ca"! ut'"at! u! n 1 @anua$ 1%60, #ut 9as nt &a' n t/at at!, 9't/ t/! !#t$s as='ng $ an !8t!ns'n "nt/s, $ u& t 0 A&$' 1%60+ On 17 a$c/ 1%60, t/! &a$t'!s !8!cut! ant/!$ an cu"!nt+ *a"!nt t/! *10,000+00 9as !8t!n! t 0 A&$' 1%60,#ut t/! #'gat'n 9as 'nc$!as! # *6,000 9/'c/ $"! &a$t t/! &$'nc'&a #'gat'n t ans9!$ $ att$n!s !!s, !ga 'nt!$!st, an t/!$ cst 'nc'!nt t/!$!t t
#! &a' unt t/! c$!'t$ an /'s succ!ss$s 'n 'nt!$!st u&n t/! t!$"'nat'n t/'s ag$!!"!nt+ T/! !!nants aga'n a'! t &a t/!'$ #'gat'n+ On 2 S!&t!"#!$ 1%60, t/! &a'nt' 'nst'tut! t/! c!ct'n cas! #!$! t/! .u$t F'$st Instanc! Cuacan+ T/! !!nants a"'tt! t/! *10,000+00 &$'nc'&a #'gat'n, #ut ca'"! t/at t/! a't'na *6,000+00 cnst'tut! usu$'us 'nt!$!st+
>&n t/! &a'nt's a&&'cat'n, t/! T$'a .u$t 'ssu! a 9$'t Attac/"!nt n $!a an &!$sna &$&!$t'!s !!nants+ At!$ t/! $'t Attac/"!nt 9as '"&!"!nt!, &$c!!'ngs #!$! t/! T$'a .u$t 3!$s! &$'nc'&a 'n $!ga$s t t/! attac/"!nt+ On 1? @anua$ 1%61, an O$!$ 9as 'ssu! # t/! T$'a .u$t a9'ng #t/ &a$t'!s t
s'"utan!us su#"'t a t'n $ Su""a$ @ug"!nt+ On 26 @un! 1%61, t/! T$'a .u$t $!n!$! !c's'n $!$'ng !!nants t &a t/! &a'nt' t/! a"unt *10,000+00 &us t/! u$t/!$ su" *6,000+00+ T/! !!nants a&&!a! #!$! t/! t/!n cu$t A&&!as, 9/'c/ !n$s! 't t t/! Su&$!"! .u$t stat'ng t/at t/! 'ssu! 'n33! 9as n! a9+
Issu! D1:
/!t/!$ t/! a!gat'n usu$ s/u #! "a! 'n 9$'t'ng an un!$ at/, &u$suant t S!ct'n % t/! >su$ La9+
<! D1:
S!ct'n % t/! >su$ La9 &$3'!s t/at t/! &!$sn $ c$&$at'n su! s/a '! 'ts ans9!$ 'n 9$'t'ng un!$ at/ t an c"&a'nt #$ug/t $ '! aga'nst sa' &!$sn $ c$&$at'n #!$! a c"&!t!nt cu$t t $!c3!$ t/! "n! $ t/!$ &!$sna $ $!a &$&!$t, s!!s $ ag$'cutu$a &$ucts, c/a$g! $ $!c!'3! 'n 3'at'n t/! &$3's'ns t/'s Act+ T/! ac= ta='ng an at/ t an ans9!$ t a c"&a'nt 9' "!an t/! a"'ss'n t/! acts cnta'n! 'n t/! att!$+ It !n3'sag!s a c"&a'nt '! aga'nst an !nt't 9/'c/ /as c""'tt! usu$, $ t/! $!c3!$ t/! usu$'us 'nt!$!st &a'+ In t/at cas!, ' t/! !nt't su! s/a nt '! 'ts ans9!$ un!$ at/ !n'ng t/! a!gat'n usu$, t/! !!nant s/a #! !!"! t /a3! a"'tt! t/! usu$+ T/! &$3's'n !s nt a&& t a cas! 9/!$! 't 's t/! !!nant, nt t/! &a'nt', 9/ 's a!g'ng usu$+
Issu! D2:
/!t/!$ t/! $!&!a Ru!s .u$t $ an &$c!u$a a9 's 9't/ $!t$act'3! !!ct+ <! D2:
T/! .u$t &'n! t/at t/! Ru!s .u$t 'n $!ga$s t a!gat'ns usu$, &$c!u$a 'n natu$!, s/u #! cns'!$! $!&!a! 9't/ $!t$act'3! !!ct+ It /as #!!n &$!3'us /!(*!&! 3s+ Su"'ang, an !L&!, !t a+ 3s+ Va+ ! Faa$, !t a+) t/at statut!s $!guat'ng t/! &$c!u$! t/! cu$ts 9' #! cnst$u! as a&&'ca#! t act'ns &!n'ng an un!t!$"'n! at t/! t'"! t/!'$ &assag!+ *$c!u$a a9s a$! $!t$s&!ct'3! 'n t/at s!ns! an t t/at !8t!nt+ .""!nts ($!u'$! 'n ass'gn"!nt) T/! ast s!nt!nc! S!ct'n 11, Ru! %, t/! 1%%7 Ru!s n usu$ 'n a c"&a'nt t $!c3!$ usu$'us 'nt!$!st s'"'a$
'n cnt!8t t S!ct'n % >su$ La9, 9/'c/ 9as $a's! 'n t/'s 1%?4 cas! (at/ug/ '"&$&!$ a&&'!)+ T/! $!'t!$at'n "att!$s &!$ta'n'ng t usu$ 'n t/! 1%%7 $u!s 's &!$&!8'ng as t/! 1%?4 !c's'n 'ts! a"'ts -!8'st!ntH as 'nt!$!st can n9 #! c/a$g! as !n!$ an .u$t 'n $!ga$s t a!gat'ns usu$, &$c!u$a 'n natu$!, s/u #! cns'!$! $!&!a! 9't/ 'ncng$u!nt $!a't'!s, /9!3!$, a$! s!cna$ n t t/! act t/at a "!$! .!nt$a Can= c'$cua$ $ "!"$anu" !!ct'3! sus&!n! t/! a&&'cat'n t/! >su$ La9 t a !g$!! tanta"unt t 'ts $!&!a+
AILA TRAIG S>**LB .O+ VS+ EIA (2 S.RA 54%, 1%61) FA.TS:
a$'an !'na /a an accunt &$'$ t a 7, 1%56 9't/ an'a T$a'ng an Su&& .+ 9't/ an a"unt *60,000 $ 9/'c/ !'na !8!cut! a &$"'ss$ nt!+ T/! nt! &$3'! t/at u&n a'u$! t &a t/! 'nsta"!nts, t/! $!"a'n'ng a"unt 9' '""!'at! #!c"! u! an &aa#! at t/! &t'n t/! /!$ t/! nt! 9't/ + a"unt u! $ att$n!s !!s an !8&!ns!s c!ct'n+
On @anua$ ?, 1%57, an'a T$a'ng J .+ '! a c"&a'nt aga'nst !'na $ a'u$! t &a 'nsta"!nts $" S!&t!"#!$ 1%56 t @anua$ 7, 1%57+ !'na '! an ans9!$ a"'tt'ng a!gat'ns #ut sa' t/! + $ att$n!s !!s 9!$! !8$#'tant an uncnsc'na#!+ <! &!a! t/at n @anua$ 24, 1%57, an a't'na *4,000 9as &a' s t/at /! 9' nt #! su! an a9! t &a t/! #aanc!+ >&n &!t't'n
&a'nt', a 9$'t attac/"!nt 9as 'ssu! an !3'! u&n !!3!n !!nantKs #us!s+ <'s cunt!$ca'" 9as a"ag!s $ t/! ss /'s !a$n'ngs+ *a'nt' !n'! t/! !!ns! an cunt!$ca'"+ *a'nt' &$3'! !3'!nc! 21 &a"!nts "a! # !!nant $" @un! 6, 1%56 t @an+ 21, 1%57+ T/! !!nant t!st''! t/at /! /as 10 t/!$ &a"!nts 9't/ $!c!'&ts #ut t/! at!s an s!$'a nu"#!$s a$! unc!a$ $ 't 9as !at!n # ana+ !!nant ca'"s t/at /'s &a"!nt n @an+ 1%57 g'3!s $'s! t t/! &$!su"&t'n t/at &$'$ 'nsta"!nts /a3! #!!n &a'+
ISS>E:
A$! t/! &$!s!nt! $!c!'&ts g!nu'n! t $a's! t/! &$!su"&t'n t/at &$'$ 'nsta"!nts 9!$! &a';
R>LIG:
+ A&&!ant a3!$s t/at t/! g!nu'n! $!c!'&ts at! @anua$, 1%57 $a's! t/! &$!su"&t'n t/at &$'$ 'nsta"!nts 9!$! &a'+ T/'s "'g/t #! t$u! ' suc/ $!c!'&ts $!c't! t/at t/! 9!$! 'ssu! $ t/! 'nsta"!nts c$$!s&n'ng t t/! "nt/ @anua$, 1%57H #ut n9/!$! !s t/at act a&&!a$+ An !3!n ' suc/ $!c'ta /a #!!n "a!, t/! $!sut'ng&$!su"&t'n 9u n #! &$'"a ac'!, an t/! !3'!nc! #!$! us 's c!a$ t/at t/! &a"!nts "a! nt c$$!s&n t t/! 'nsta"!nts a'ng u! n t/! at!s t/! g!nu'n! $!c!'&ts+ As &'nt! ut # t/! t$'a cu$t, 't 's /'g/ sus&'c'us t/at t/!s! $!c!'&ts s/u #! "ut'at! &$!c's! at t/! &ac!s 9/!$! t/! s!$'a nu"#!$s an t/! !a$ 'ssu! "ust a&&!a$, 9/'! t/! $!c!'&ts $ 'nt!$3!n'ng &a"!nts $!cgn'! # t/! &a'nt' $!"a'n! 'ntact+ In a't'n, t/! nu"#!$s t/at !'na att$'#ut! t t/!" a$! nt 'n s!u!nc!+ It 's ''cut t
#!'!3! t/at a t$a'ng c"&an s/u 'ssu! $!c!'&ts nu"#!$! at $an", s'nc! 't 9u "a=! au't'ng cnt$ '"&ss'#!+
A*#(A-+ vs. #)( #8 A+A-$ 3.(. &o. 11:4, &ovember 6", 1:::
8acts9
P$(:a#& $&+o%'&%# Sa#*$%(%o ;a$&%3 a+ #& $&3(+#&$&' o%&$ o 2 a$/&+ o a%'. P&#(#(o%&$+ &$& &++&&+ o a 200 +).4. o$#(o% o o%& o #& +a(' 2 a%'+.
O% A$( 29, 1985, Sa#*$%(%o ;a$&%3 a%' (+ +o%, F$a%/(+/o ;a$&%3, o#a(%&' a oa% $o4 &#(#(o%&$ a4o*%#(%3 #o P26,000 (% /o%+('&$a#(o% o (/ #&y $o4(+&' #o #$a%+&$ #& o++&++(o% a%' &%oy4&%# o #& $*(#+ o Lo# No. 661-E.
O% A*3 , 1986, Sa#*$%(%o +o' #o (+ +o% F$a%/(+/o 18,500 +).4. o o# No. 661-D-5-A.
o I% #*$%, F$a%/(+/o +o' o% A*3. 27, 1986 #o $(:a#& $&+o%'&%# Bo+& Ra4o+
,000 +). 4. o #& o#.
etitioner filed a complaint for the annulment of the sale on the ;round that the sale was fraudulently prepared.
%ssue9 Do&+ &#(#(o%&$ a:& a /a*+& o a/#(o% &#&$ &#(#(o%&$ (+ #& $&a a$#y (% (%#&$&+# 0eld9
No. P&#(#(o%&$+ 'o %o# a:& +*/ 4a#&$(a (%#&$&+# a+ #o ao #&4 #o +*& o$ $&+/(++(o% o #& /o%#$a/# o +a&.
A# #& o*#+&#, &#(#(o%&$+ $(3# a3a(%+# $(:a#& $&+o%'&%#+ (+ o%y a &$+o%a $(3# #o $&/&(:& ay4&%# o #& oa% (# (+ %o# a $&a $(3# o:&$ #& o# +*&/# o #& '&&' o +a&. No$ /a% & +*+#a(% &#(#(o%&$+ /a(4 #a# #& +a& a+ 4a'& (% $a*' o /$&'(#o$+ *%'&$
A$#. 1177 o #& (:( o'&.
!& oo(%3 +*//&++(:& 4&a+*$&+ 4*+# & #a&% y a /$&'(#o$ &o$& & 4ay $(%3 a% a/#(o% o$ $&+/(++(o% o a% a&3&'y $a*'*&%# +a&"
1. exhaust the property of the debtor through levying by attachment and execution upon all the property of the debtor, except such as are exempt by law from execution; 2. exercise all the rights and actions of the debtor, save those personal to him; 3. seek rescission of the contracts executed by the debtor in fraud of their rights. (#o*# a:a((%3 o #& ($+# a%' +&/o%' $&4&'(&+, (.&., &@a*+#(%3 #& $o&$#(&+ o #&
'&#o$ o$ +*$o3a#(%3 #&4+&:&+ (% F$a%/(+/o ;a$&%3+ #$a%+4(++(& $(3#+ a%' a/#(o%, &#(#(o%&$+ +(4y *%'&$#oo #& #($' 4&a+*$& a%' (&' a% a/#(o% o$ a%%*4&%# o +a&.
