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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
September-2009 Jurisprudence                 

  • A.C. No. 6672 - Pedro L. Linsangan v. Atty. Nicodemes Tolentino

  • A.C. No. 5955 - John Christen S. Hegna v. Atty. Goering G.C. Paderanga

  • A.C. No. 7297 - Imdelda Bides-Ulaso v. Atty. Edita Noe-Lacsamana

  • A.C. No. 7435 - Rey C. Sarmiento, et al. v. Atty. Edelson G. Oliva

  • A.C. No. 7547 - Gregory U. chan v. NLRC Commissioner Romeo L. Go, et al.

  • A.C. No. 7910 - Wen Ming W. Chen a.k.a. Domingo Tan v. Atty. F.D. Nicolas B. Pichay

  • A.M. No. 01-1-04-SC-PHILJA - Re: Further clarifying and strengthening the organization strcture and administrative set-up of the Philippine Judicial Academy

  • A.M. No. 06-3-07-SC - Request for the approval of the revised qualification standard for the chief of MISO

  • A.M. No. 2009-04-SC - Complaint of Atty. Wilhelmina D. Geronga againts Mr. Ross C. Romero, driver, shuttle bus no. 5 for reckless driving

  • A.M. No. CTA-05-2 - Office of the Court Administrator v. Concepcion G. Espineda, etc.

  • A.M. No. MTJ-06-1623 Formerly OCA IPI No. 04-1635-MTJ, A.M. NO. MTJ-06-1624 Formerly OCA IPI No. 04-1636-MTJ, A.M. NO. MTJ-06-1625 Formerly OCA IPI No. 04-1630-MTJ, A.M. NO. MTJ-06-1627 Formerly OCA IPI No. 04-1661-MTJ, A.M. NO. P-09-2693 Formerly OCA IPI

  • A.M. No. P-05-2046 Formerly No. 05-6-159-MCTC - Office of the Court Administrator v. Clerk of Court Fe P. Ganzan, MCTC, Jasaan, Misamis Oriental

  • A.M. No. P-06-2264 Formerly OCA I.P.I Nos. 05-2136-P and 05-2137-P - Atty. Lelu P. Contreras v. Teresita O. Monge, Clerk IV, Rigional Trial Court - Office of the Clerk of Court, Iriga City

  • A.M. No. P-07-2332 Formerly OCA I.P.I No. 07-2511-P - Dr. Salome U. Jorge v. Carlos P. Diaz, Deputy Sheriff, RTC, Branch 20, Tacurong, Sultan Kudarat

  • A.M. No. P-08-2433 Formerly OCA IPI No. 07-2667-P - Judge Jenny Lind Aldecia-Delorino v. Marilyn De Castro Remigio-Versosa, Clerk III, Regional Trial Court, Branch 137, Makati City

  • A.M. No. P-08-2570 Formerly A.M. OCA IPI No. 07-2547-P - Leticia Sales v. Arnel Jose A. Rubio, Sheriff IV, RTC, OCC, Naga City

  • A.M. No. P-09-2685 OCA-IPI No. 08-2839-P - P/Supt. Rene Macaling Orbe v. Marcos U. Digandang, Process Server, Regional Trial Court, Branch 14, Cotabato City

  • A.M. No. RTJ-01-1650 Formerly OCA IPI No. 01-1195-RTJ - Margie Corpus Macias v. Mariano v. Mariano Joaquin S. Macias, Presiding Judge, Branh 28, Regional Trial Court, Liloy, Zamboanga del Norte

  • A.M. No. RTJ-07-2089 Formerly OCA I.P.I. No. 07-2659-RTJ and A.M. NO. RTJ-0921-99 Formerly OCA I.P.I. No. 07-2698-RTJ- Land Bank of the Philippines v. Judge Ernesto P. Pagayatan

  • G.R. No. 132826 - Rolando Saa v. Integrated Bar of the Philippines, Commissoion on Bar Discipline, Board of Governors, Pasig City and Atty. Freddie A. Venida

  • G.R. NOS. 140743 & 140745 and G.R. NOS. 141451-52 - City Government of Tagaytay v. Hon. Eleuterio F. Guerrero, etc. et al.

  • G.R. No. 146534 - Spouses Hu Chuan Hai and Leonica Lim Hu v. Spouses Renato Unico and Maria Aurora J. Unico

  • G.R. NOS. 147026-27 - Carolina R. Javier v. Sandiganbayan, et al.

  • G.R. No. 148444 - Associated Bank (now United Overseas Bank [Phils.]) v. Spouses Rafael and Monaliza Pronstroller/Spouses Eduardo and Ma. Pilar Vaca (Intervenors)

  • G.R. No. 149588 - Francisco R. Llamas, et al. v. The Honorable Court of Appeals, et al.

  • G.R. No. 150664 - Vicente Dacanay, in his capacity as administrator of the Testate Estate of Tereso D. Fernandez v. Hon. Raphael Prastora Sr., etc., et al.

  • G.R. No. 151969 - Valle Verde Country Club, Inc., et al. v. Victor Africa

  • G.R. No. 152101 - Emcor, Incorporated v. Ma. Lourdes D. Sienes

  • G.R. No. 152614 - Salvador A. Fernandez v. Cristina D. Amagna

  • G.R. No. 154720 - Juan Balbuena and Teodulfo Retuya v. Leona Aparicio Sabay, et al.

  • G.R. No. 156164 - Sps. Leonardo and Milagros Chua v. Hon. Jacinto G. Ang, et al.

  • G.R. No. 157901 - Orix Metro Leasing and Finance Corporation v. M/V "PILAR-I" and Spouses Ernesto Dy and Lourdes Dy

  • G.R. No. 157952 - Jowett K. Golango v. Jone B. Fung

  • G.R. No. 158630 and G.R. No. 162047 - Joyce Y. Lim, represented by her attorney-in-fact Bernardo M. Nicolas

  • G.R. No. 159116 - Sps. Nestor and Felicidad Dadizon v. Hon. Court of Appeals and Sps. Dominador and Elsa Mocorro

  • G.R. No. 159710 - Carmen A. Blas v. Spouses Eduardo and Salud Galapon

  • G.R. No. 161902 - Edgar Mercado v. People of the Philippines

  • G.R. No. 162104 - R Transport Corporation v. Eduardo Pante

  • G.R. No. 163270 - Eduardo M. Tomada, Sr. v. RFM Corporation-Bakery Flour Division, et al.

  • G.R. No. 164104 - Philippine National Bank v. Gregorio B. Maraya, Jr. and Wenefrida Maraya

  • G.R. No. 164205 - Oldarico S. Trave o, et al. v. Bobongon Banana Growers Multi-Purpose Cooperative, et al.

  • G.R. No. 164435 - Victoria S. Jarillo v. People of the Philippines

  • G.R. No. 164549 - Philippine National Bank v. Spouses Agustin and Pilar Rocamora

  • G.R. No. 164815 - Sr. Inspector Jerry Valeroso v. Court of Appeals and People of the Philippines

  • G.R. No. 165141 - Peregina Mistica v. Republic of the Philippines

  • G.R. No. 166516 - Emma Ver Reyes and Ramon Reyes v. The Register of Deeds of Cavite, et al.

  • G.R. No. 166857 - D.M. Wenceslao & Associates, inc. v. Freyssinet Philippines, Inc.

  • G.R. No. 167330 - Philippine Health Providers, Inc. v. Commissioner of Internal Revenue

  • G.R. No. 167569, G.R. No. 167570 & G.R. No. 171946 - Carlos T. Go., Sr., v. Luis T. Ramos

  • G.R. No. 167955 Formerly G.R. No. 151275 - People of the Philippines v. Armando Padilla y Nicolas

  • G.R. No. 167995 - Julita V. Imuan, et al. v. Juanito Cereno, et al.

  • G.R. No. 168151 - Regional Container Lines (RCL) of Singapore and Shipping Agency v. The Netherlands Insurance Co. (Philippines) Inc.

  • G.R. No. 168446 Formerly G.R. NOS. 144174-75 - People of the Philippines v. Ernesto Cruz, Jr. y Concepcion, et al.

  • G.R. No. 168927 - Arsenio F. Quevedo, et al. v. Benguet Electric Cooperative Incorporated, et al.

  • G.R. No. 169228 - The Alexandra Condominium Corporation v. Laguna Lake Development Authority

  • G.R. No. 169364 - People of the Philippines v. Evangeline Siton y sacil, et al.

  • G.R. No. 169641 - People of the Philippines v. Richard O. Sarcia

  • G.R. No. 169889 - Spouses Simon Yap and Milagros Guevarra v. First e-Bank, Inc.

  • G.R. No. 169919 - B.D. Long Span Builders, Inc. v. R.S. Ampeloquio Realty Development Inc.

  • G.R. No. 169940 - Univeristy of Santo Tomas v. Samahang Manggagawa ng UST (SM-UST)

  • G.R. No. 170072 - Joaquin P. Obieta v. Edward Cheok

  • G.R. No. 170342 - Allan Dizon v. People of the Philippines

  • G.R. No. 170482 - Manila Electric Company v. Aguida Vda. De Santiago

  • G.R. No. 171018 - People of the Philippines v. Elly Naelga

  • G.R. No. 171260 - Amparo Robles Cabreza v. Ceferino S. Cabreza Jr., et al.

  • G.R .No. 171491 - Dr. Castor C. De Jesus v. Rafel D. Guerrero III, Cesario R. Pagdilao and Fortuna B. Aquino

  • G.R. No. 171681 - Kei Marie and Bianca Angelica both surnamed Abrera, minors, represented by their parents Evelyn C. Abrera, et al. v. Hon. Romeo F. Barza, in his capacity as Presiding Judge of Regional Trial Court, Branch 61, Makati City and College Assu

  • G.R. No. 171984 - Bandila Maritime Services, Inc. and/or Tokomaru Kaiun Co., Ltd. v. Rolando Dubduban

  • G.R. No. 172217 - Spouses Lydia Flores-Cruz, et al. v. Spouses Leonardo and Iluminada Goli-Cruz, et al.

  • G.R. No. 172447 & G.R. No. 179404 - Iglesia Evangelisca Metodista En Las Islas Filipinas (IEMELIF), Inc. v. Nataniel B. Juane/Nataniel B. Juane v. Iglesia Evangelisca Metodista En Las Islas Filipinas (IEMELIF), Inc.

  • G.R. No. 174116 - Eastern Shipping Lines, Inc. v. Prudential Guarantee and Assurance, Inc.

  • G.R. No. 175064 - Province of Camarines Sur, represented by Governor Luis Raymund F. Villafuerte, Jr. v. Hon. Court of Appeals and City of Naga, represented by Mayor Jesse M. Robredo

  • G.R. No. 175172 - Cresencia Achevara, Alfredo Achevara and Benigno Valdez v. Elvira Ramos, John Arnel Ramos and Kristine Camille Ramos

  • G.R. No. 175528 - PO3 Benito Sombilon, Jr. v. People of the Philippines

  • G.R. No. 175490 - Ileana Dr. Macalino v. Bank of the Philippines Islands

  • G.R. No. 176014 - Alice Vitangcol and Norberto Vitangcol v. New Vista Properties, Inc., et al.

  • G.R. No. 176040 - Casa Cebuana Incoporada, et al. v. Ireneo P. Leuterio

  • G.R. No. 176364 - Juanito R. Rimando v. Commission on Elections and Norma O. Magno

  • G.R. No. 176546 - Felicitas P. Ong v. The People of the Philippines

  • G.R. No. 176700 - Romero Montederamos v. Tri-Union International Corporation

  • G.R. No. 177056 - The Office of the Solicitor General v. Ayala Land Incorporated, et al.

  • G.R. No. 177066 - Joselito Musni Puno (as heir of the late Carlos Puno) v. Puno Enterprises, Inc., represented by Jesusa Puno

  • G.R. No. 177456 - Bank of the Philippine Isalands v. Domingo R. Dando

  • G.R. No. 177531 - Civil Service Commission v. Fatima A. Macud

  • G.R. No. 177705 - Kimberly-Clark Philippines, Inc. v. Nora Dimayuga, et al.

  • G.R. No. 177753 - People of the Philippines v. Benjamin Ocampo

  • G.R. No. 177836 - Edwino A. Torres (deceased), represented and substitute by Alfonso P. Torres III, et al.

  • G.R. NOS. 177857-58, G.R. NO. 178193 and G.R. NO. 180705 - Philippine Coconut Producers Federation, Inc. (COCOFED), Manuel V. Del Rosario, Domingo P. Espina, et al. v. Republic of the Philippines

  • G.R. No. 178034, G.R. No. 178117 and G.R. NOS. 186984-85 - Andrew Jame Mcburne v. Eulalio Ganzon, et al.

  • G.R. No. 178485 - People of the Philippines v. Mariano Sapigao, Jr.

  • G.R. No. 178529 - Equitable PCI Bank, Inc (now known as Banco De Oro-EPCI, Inc.) v. Heirs of Antonio C. Tiu, et al.

  • G.R. No. 178543 - People of the Philippines v. Aristo Villanueva

  • G.R. No. 178933 - Recardo S. Silverio, Jr. v. Court of Appeals and Nelia S. Silverio-Dee

  • G.R. No. 179103 and G.R. NO. 180209 - National Power Corporation v. Premier Shipping Lines, Inc.

  • G.R. No. 179213 - People of the Philippines v. Nicolas Gutierrez y Licunan

  • G.R. No. 179313 - Makil U. Pundaodaya v. Commission on Elections, et al.

  • G.R. No. 179319 - Eugene C. Firaza v. People of the Philippines

  • G.R. No. 179475 - People of the Philippines v. Daniel Sibunga y Agtoca

  • G.R. No. 179502 - Progressive Trade & Service Enterprises v. Maria Milagrosa Antonio

  • G.R. No. 179583 - Jimmy L. Barnes a.k.a. James Barnes v. Teresita C. Reyes, et al.

  • G.R. No. 179799 - Zenaida R. Gregorio v. Court of Appeals, et al.

  • G.R. No. 179862 - Land Bank of the Philippines v. Heirs of Asuncion Anonuevo Vda. Santos, et al.

  • G.R. No. 179944 - People of the Philippines v. Antonio Ortiz, et al.

  • G.R. No. 179985 - Pdilon L. Martinez v. B&B Fish Broker and/or Norberto M. Lucinario

  • G.R. No. 180274 - Virgilio C. Crystal and Glynna F. Cystal v. Bank of the Philippines Islands

  • G.R. No. 180453 - Republic of the Philippines v. Dante C. Abril, represented by his Attorney-in-fact, Manuel C. Blaco, Jr.

  • G.R. No. 180478-79 - The Heritage Hotel of Manila v. National Labor Relations Commission, Rufino C. Ra on II, and Ismael C. Villa

  • G.R. No. 180508 - People of the Philippines v. Antonio v. Antonio Ramos y Viray

  • G.R. No. 180693 - Bonifacio Dolera y Tejada v. People of the Philippines

  • G.R. No. 180863 - Angelita Valdez v. Republic of the Philippines

  • G.R. NOS. 180880-81 and G.R. NOS. 180896-97 - Keppel Cebu Shipyard, Inc. v. Pioneer Insurance and Surety Corporation

  • G.R. No. 180888 - Rolando Placido and Edgardo Caragay v. National Labor Relations Commission and Philippine Long Distance Telephone Company, Incorporated

  • G.R. No. 180992 - Elmer Diamante y Sioson, et al. v. People of the Philippines

  • G.R. No. 181081 - People of the Philippines v. Roldan Arcosiba alias "Entoy"

  • G.R. No. 181300 - Malayan Insurance Co., Inc. v. Jardine Davies Transport Services, Inc. and Asian Terminals, Inc.

  • G.R. No. 181303 - Carmen Danao Malana, et al. v. Benigno Tappa, et al.

  • G.R. No. 181503 - Bio Quest Marketing Inc. and/or Jose L. Co v. Edmund Rey

  • G.R. No. 181613 - Rosalinda A. Penera v. Commission on Elections and Edgar T. Andanar

  • G.R. No. 181629 - People of the Philippines v. Elizardo Cabiles alias "SARDO"

  • G.R. NOS. 181999 & G.R. No. 182001-04 and G.R. NOS. 182020-24 - Ofelia Caunan v. People of the Philippines, et al.

  • G.R. No. 182185 - Joaquin Ga, Jr., et al. v. Spouses Antonio Tabungan, et al.

  • G.R. No. 182320 - Tacloban Far East Marketing Corporation, et al. v. The Court of Appeals, et al.

  • G.R. No. 183088 - People of the Philippines v. Donato Capco y Sabadlab

  • G.R. No. 183141 - Edgardo H. Catindig v. People of the Philippines, et al.

  • G.R. No. 183142 - Rosita A. Montanez v. Provincial Agrarian Reform Adjudicator (PARAD), et al.

  • G.R. No. 183387 - Simeon M. Valdez v. Financiera Manila Inc.

  • G.R. No. 183457 - People of the Philippines v. Roel Arbalate, et al.

  • G.R. No. 183546 - Wilson A. Go v. Harry A. Go

  • G.R. No. 183646 - Great Southern Maritime Services Corp., et al. v. Leonila Surigao, et al.

  • G.R. No. 183656 - Gilbert Zalameda v. People of the Philippines

  • G.R. No. 183802 - Alexander Tam Wong v. Catherine Factor-Koyoma

  • G.R. No. 183965 - Joanie Surposa Uy v. Jose Ngo Chua

  • G.R. No. 184037 - Antonio Lopez y Dela Cruz v. People of the Philippines

  • G.R. No. 184225 - Spouses Rogelio F. Lopez and Teotima G. Lopez v. Samuel R. Espinosa and Angelita S. Espinosa

  • G.R. No. 184252 - China Banking Corporation v. Sps. Wenceslao & Marcelina Martir

  • G.R. No. 184268 - Ernesto Batalla v. Commission on Elections and teodoro Bataller

  • G.R. No. 184285 - Rodolfo "Rudy" Canlas, et al. v. Iluminada Tubil

  • G.R. No. 184735 - Miriam B. Elleccion vda. De Lecciones v. National Labor Relations Commission, et al.

  • G.R. No. 184958 - People of the Philippines v. Anthony C. Domingo and Gerry Domingo

  • G.R. No. 185001 - Ronnie H. Lumayna, et al. v. Commission on Audit

  • G.R. No. 185203 - People of the Philippines v. Domingo Araojo

  • G.R. No. 186138 - People of the Philippines v. Loreto Daria y Cruz

  • G.R. No. 186497 - People of the Philippines v. Hasanaddin Guira y Bansil

  • G.R. No. 187043 - People of the Philippines v. Lorenzo Oliva y Rosela

  • G.R. No. 187156 - People of the Philippines v. Melody Gutierrez y Lauriada

  • G.R. No. 187503 - People of the Philippines v. Tecson Lim y Chua and Maximo Flores y Viterbo

  • G.R. No. 188456 - Harry L. Roque, et al. v. Commission on Election, et al.

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    G.R. No. 180274 - Virgilio C. Crystal and Glynna F. Cystal v. Bank of the Philippines Islands

      G.R. No. 180274 - Virgilio C. Crystal and Glynna F. Cystal v. Bank of the Philippines Islands

    PHILIPPINE SUPREME COURT DECISIONS

    SECOND DIVISION

    [G.R. NO. 180274 : September 4, 2009]

    VIRGILIO C. CRYSTAL and GLYNNA F. CRYSTAL, Petitioners, v. BANK OF THE PHILIPPINE ISLANDS, Respondent.

    D E C I S I O N

    CARPIO MORALES, J.:

    On September 5, 1995, Virgilio C. Crystal and Glynna F. Crystal (petitioners) obtained a P3,000,000 loan from Citytrust Banking Corporation (Citytrust) to secure which they mortgaged a parcel of land located in the Banilad Estate, Cebu City.

    In 1996, the Bank of the Philippine Islands (respondent) merged with and absorbed Citytrust.

    Petitioners failed to settle their loan, drawing respondent to extra-judicially foreclose the mortgage. The mortgaged property was sold at public auction on July 21, 1997 to respondent which was the highest bidder for P5,604,000. The amount was applied to the mortgage obligation.

    Respondent subsequently filed on March 19, 2001 before the Regional Trial Court (RTC) of Cebu City a complaint against petitioners, for collection of deficiency of mortgage obligation and damages, alleging that

    x x x [O]n the date of the auction the mortgage obligation amounted to P6,490,623.18 so there was a resulting deficiency of P886,623.18 due the plaintiff from the defendants, the same to earn stipulated interest of 27% per annum from July 21, 1997 to January 1, 2001 and at 20% per annum from January 1, 2001 to March 15, 2001.

    After the auction sale on July 21, 1997, plaintiff incurred expenses for Sheriff's commissions, capital gains tax, documentary stamp tax, real estate taxes and other expenses incidental to the transfer of the certificate of title to the plaintiff all in all amounting to P1,665,946.69 which defendants are liable to plaintiff x x x. Plaintiff's total claim, therefore, for deficiency as alleged in the preceding paragraph and for other contractual liability as alleged in this paragraph, is P3,425,386.27 x x x.1 (Underscoring supplied)cralawlibrary

    In their Answer,2 petitioners contended that respondent violated the Truth in Lending Act by not disclosing that it was charging them 27% per annum in interest; and that the extrajudicial foreclosure was illegal because the mortgaged property was not foreclosed for the correct amount. They thus prayed that the extrajudicial foreclosure be declared null and void or, in the alternative, that the excess of their P3,000,000 principal obligation plus interest at 12% per annum be ordered returned to them and that respondent pay them attorney's fees and expenses of litigation.

    Branch 20 of the Cebu City RTC, by Decision of September 27, 2004, reduced petitioners' total outstanding obligation to P5,284,888.653 after finding that the interests, penalty charges and liquidated damages were exorbitant and the attorney's fees unreasonable. After deducting the said reduced amount of P5,284,888.65 from the P5,604,000.00 proceeds of the foreclosure sale to thus yield a remainder of P319,111.35, the trial court disposed:

    WHEREFORE, premises considered, it is hereby ordered that plaintiff Bank of the Philippine Islands pay Spouses Virgilio and Glynna Crystal the amount of P319,111.35 representing the excess amount of the proceeds of the foreclosure sale over the recomputed obligation of the defendants, plus interest of 12% per annum, from the [sic] July 21, 1997 until the same is fully paid.

    SO ORDERED.4 (Emphasis in the original; italics and underscoring supplied)

    On appeal, the Court of Appeals affirmed the trial court's decision but deleted the award of interest on the P319,111.35 to be returned by respondent to petitioners.5 The parties filed their respective motions for reconsideration6 which were denied.7 They thereupon filed their respective Petitions for Review on Certiorari before this Court.

    By Resolution of January 23, 2008,8 the Court denied respondent's petition, docketed as G.R. No. 180129, for failure to sufficiently show that the appellate court committed any reversible error in the challenged decision and resolution.

    With respect to herein petitioners' petition9 subject of the present Decision, petitioners question only the deletion by the appellate court of the imposition by the trial court of interest on the amount to be refunded to them by respondent.10

    Respondent, in its Comment, posits that it is not obliged to pay petitioners any "surplus,"11 citing Dio v. Japor12 which held:

    We note that the "surplus" was the result of the computation by the Court of Appeals of respondents' outstanding liability based on a reduced interest rate of 12% per annum and the reduced penalty rate of 1% per month. The court a quo then proceeded to apply our ruling in Sulit v. Court of Appeals, to the effect that in case of surplus in the purchase price, the mortgagee is liable for such surplus as actually comes into his hands, but where he sells on credit instead of cash, he must still account for the proceeds as if the price were paid in cash, for such surplus stands in the place of the land itself with respect to liens thereon or vested rights therein particularly those of the mortgagor or his assigns.

    In the instant case, however, there is no "surplus" to speak of. In adjusting the interest and penalty rates to equitable and conscionable levels, what this Court did was merely to reflect the true price of the land in the foreclosure sale. The amount of the petitioner's bid merely represented the true amount of the mortgagee's debt. No surplus in the purchase price was thus created to which the respondents as the mortgagors have a vested right.13 (Emphasis and underscoring supplied)cralawlibrary

    The petition is impressed with merit.

    Section 4 of Rule 68 of the Rules of Civil Procedure mandates that:

    [t]he amount realized from the foreclosure sale of the mortgaged property shall, after deducting the costs of the sale, be paid to the person foreclosing the mortgage, and when there shall be any balance or residue, after paying off the mortgage debt due, the same shall be paid to junior encumbrancers in the order of priority, to be ascertained by the court, or if there be no encumbrances or there be a balance or residue after payment to them, then to the mortgagor or his duly authorized agent, or to the person entitled to it. (Emphasis, italics and underscoring supplied)

    In the present case, the appellate court affirmed the trial court's finding, after a recomputation-reduction of the amount of petitioners' outstanding obligation, that there was an excess amount of the proceeds of the foreclosure sale that must be returned to petitioners.

    Respondent's reliance on Dio thus fails. It must thus return to petitioners the residue or excess amount of P319,111.35.ςηαñrοblεš νιr†υαl lαω lιbrαrÿ

    The only issue in the present case is in fact whether the excess amount of P319,111.35 should earn legal interest, the judgment directing respondent to refund such excess having been laid to rest when, as reflected above, the Court denied respondent's petition in G.R. No. 180129.

    The Court resolves the issue in the affirmative.

    While it is settled that the imposition of legal interest on monetary awards is subject to the sound discretion of the court which, if properly exercised, will not be disturbed on appeal,14 the appellate court inexplicably deleted the award in the dispositive portion of its assailed Decision, without indicating in any portion of the Decision the reason therefor.ςηαñrοblεš νιr†υαl lαω lιbrαrÿ

    The Court finds well-taken the imposition by the trial court of legal interest on the excess amount, not, however, at 12% per annum, but at 6%, and to be computed as LCK Industries Inc. v. Planters Development Bank15 teaches, viz:

    Under the principle of unjust enrichment - nemo cum alterius detrimento locupletari potest - no person shall be allowed to enrich himself unjustly at the expense of others. This principle of equity has been enshrined in our Civil Code, Article 22 of which provides:

    Art. 22. Every person who through an act of performance by another, or any other means, acquires or comes into possession of something at the expense of the latter without just or legal ground, shall return the same to him.

    We have held that there is unjust enrichment when a person unjustly retains a benefit to the loss of another, or when a person retains the money or property of another against the fundamental principles of justice, equity and good conscience.

    x x x

    [T]his Court finds the respondent bank liable not only for retaining the excess of the bid price or the surplus money in the sum of P1,893,916.67, but also for paying the interest thereon at the rate of 6% per annum from the time of the filing of the complaint until finality of judgment. Once the judgment becomes final and executory, the interest of 12% per annum, should be imposed, to be computed from the time the judgment becomes final and executory until fully satisfied.(Italics in the original; emphasis and underscoring supplied)

    The imposition of 6% interest per annum is thus to be computed from the time the trial court rendered judgment on September 27, 2004, and not from July 21, 1997 (the date of the auction sale) as held by the trial court, nor from the filing of the complaint on March 19, 2001 since it was respondent which filed the complaint (for collection of deficiency of mortgage obligation).16 And after the finality of this Decision, the judgment award inclusive of interest shall bear interest of 12% per annum until full satisfaction thereof.

    WHEREFORE, the petition is GRANTED. The Decision of the Court of Appeals in CA-G.R. CEB CV No. 00546 dated February 28, 2007 is MODIFIED in that respondent, Bank of the Philippine Islands, is ordered to return to petitioners the amount of P319,111.35 representing the excess amount or residue of the proceeds of the foreclosure sale, to bear interest at 6% per annum computed from the time the trial court rendered its judgment on September 27, 2004 until the finality of this Decision. Legal interest of 12% per annum shall be imposed on the judgment award inclusive of interest from the finality of this Decision until full satisfaction thereof.

    No pronouncement as to costs.

    SO ORDERED.

    Endnotes:


    1 Records, pp. 2-3.

    2 Id. at 15-18.

    3 Id. at 99-100.

    4 Id. at 100.

    5 Decision of February 28, 2007, penned by Court of Appeals Associate Justice Agustin S. Dizon, with the concurrence of Associate Justices Isaias P. Dican and Francisco P. Acosta. CA rollo, pp. 59-66.

    6 CA rollo, pp. 67-76.

    7 Id. at 83-84.

    8 Id. at 186.

    9 Rollo, pp. 4-14.

    10 Id. at 9.

    11 Id. at 32-33.

    12 G.R. No. 154129, July 8, 2005, 463 SCRA 170.

    13 Id. at 178-179.

    14 PAL v. NLRC, 328 Phil. 814, 830 (1996).

    15 G.R. No. 170606, November 23, 2007.

    16 Vide : Construction Development Corp. of the Phils. v. Estrella, G.R. No. 147791, 501 SCRA 228 (2006). In this case, the Court ruled that the legal interest of 6% shall begin to run when the trial court rendered judgment and not when the complaint was filed. This because at the time of the filing of the complaint, the amount of the damages to which plaintiffs may be entitled remains unliquidated and unknown.

    G.R. No. 180274 - Virgilio C. Crystal and Glynna F. Cystal v. Bank of the Philippines Islands


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