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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
 

   
August-2014 Jurisprudence                 

  • A.M. No. P-14-3222 (Formerly A.M. OCA IPI NO. 11-3609-P), August 12, 2014 - PRESIDING JUDGE JOSE B. LAGADO AND CLERK OF COURT II JOSEFINA C. EMPUESTO, BOTH OF THE MUNICIPAL TRIAL COURT, MAHAPLAG, LEYTE, Complainants, v. CLERK II BRYAN ANTONIO C. LEONIDO,, Respondent.

  • G.R. No. 204729, August 06, 2014 - LOURDES SUITES (CROWN HOTEL MANAGEMENT CORPORATION), Petitioner, v. NOEMI BINARAO,, Respondent.

  • G.R. No. 203775, August 05, 2014 - ASSOCIATION OF FLOOD VICTIMS AND JAIME AGUILAR HERNANDEZ, Petitioners, v. COMMISSION ON ELECTIONS, ALAY BUHAY COMMUNITY DEVELOPMENT FOUNDATION, INC., AND WESLIE TING GATCHALIAN,, Respondents.

  • G.R. No. 196117, August 13, 2014 - KRYSTLE REALTY DEVELOPMENT CORPORATION, REPRESENTED BY CHAIRMAN OF THE BOARD, WILLIAM C. CU, Petitioner, v. DOMINGO ALIBIN, AS SUBSTITUTED BY HIS HEIRS, NAMELY: BEATRIZ A. TORZAR, VIRGINIA A. TARAYA, ROSARIO A. MARCO, JESUS A. ALIBIN, AND JAY ALIBIN, AS SUBSTITUTED BY HIS CHILDREN, NAMELY: JAYNES ALIBIN, JAY ALIBIN, AND JESUS ALIBIN, JR., Respondents.; [G.R. NO. 196129] - CARIDAD RODRIGUEZA, AS SUBSTITUTED BY RUFINO RODRIGUEZA, Petitioner, v. DOMINGO ALIBIN, AS SUBSTITUTED BY HIS HEIRS, NAMELY: BEATRIZ A. TORZAR, VIRGINIA A. TARAYA, ROSARIO A. MARCO, JESUS A. ALIBIN, AND JAY ALIBIN, AS SUBSTITUTED BY HIS CHILDREN, NAMELY: JAYNES ALIBIN, JAY ALIBIN, AND JESUS ALIBIN, JR., Respondents.

  • A.C. No. 7766, August 05, 2014 - JOSE ALLAN TAN, Complainant, v. PEDRO S. DIAMANTE, Respondent.

  • A.C. No. 8000, August 05, 2014 - CHAMELYN A. AGOT, Complainant, v. ATTY. LUIS P. RIVERA, Respondent.

  • G.R. No. 171212, August 20, 2014 - INDOPHIL TEXTILE MILLS, INC., Petitioner, v. ENGR. SALVADOR ADVIENTO, Respondents.

  • G.R. No. 193681, August 06, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff, MALAYAN INSURANCE COMPANY, INC. AND HELEN Y. DEE, Private Complainants-Petitioners, v. PHILIP PICCIO, MIA GATMAYTAN, MA. ANNABELLA RELOVA SANTOS, JOHN JOSEPH GUTIERREZ, JOCELYN UPANO, JOSE DIZON, ROLANDO PAREJA, WONINA BONIFACIO, ELVIRA CRUZ, CORNELIO ZAFRA, VICENTE ORTUOSTE, VICTORIA GOMEZ JACINTO, JUVENCIO PERECHE, JR., RICARDO LORAYES, PETER SUCHIANCO, AND TRENNIE MONSOD,, Respondents.

  • G.R. No. 189629, August 06, 2014 - DR. PHYLIS C. RIO, Petitioner, v. COLEGIO DE STA. ROSA-MAKATI AND/OR SR. MARILYN B. GUSTILO, Respondents.

  • G.R. No. 193652, August 05, 2014 - INFANT JULIAN YUSAY CARAM, REPRESENTED BY HIS MOTHER, MA. CHRISTINA YUSAY CARAM, Petitioner, v. ATTY. MARIJOY D. SEGUI, ATTY. SALLY D. ESCUTIN, VILMA B. CABRERA, CELIA C. YANGCO, AND OFFICE OF THE SOLICITOR GENERAL, Respondents.

  • A.M. No. P-14-3232 (Formerly: A.M. No. 14-4-46-MTCC), August 12, 2014 - Re: REPORT OF JUDGE RODOLFO D. VAPOR, MUNICIPAL TRIAL COURT IN CITIES [MTCC], TANGUB CITY, MISAMIS OCCIDENTAL, ON THE HABITUAL ABSENTEEISM OF FILIGRIN E. VELEZ, JR., PROCESS SERVER, SAME COURT.

  • G.R. No. 200746, August 06, 2014 - BENSON INDUSTRIES EMPLOYEES UNION-ALU-TUCP AND/OR VILMA GENON, EDISA HORTELANO, LOURDES ARANAS, TONY FORMENTERA, RENEBOY LEYSON, MA. ALONA ACALDO, MA. CONCEPCION ABAO, TERESITA CALINAWAN, NICIFORO CABANSAG, STELLA BARONGO, MARILYN POTOT, WELMER ABANID, LORENZO ALIA, LINO PARADERO, DIOSDADO ANDALES, LUCENA ABESIA, AND ARMANDO YBAÑEZ, Petitioners, v. BENSON INDUSTRIES, INC., Respondent.

  • G.R. No. 204911, August 06, 2014 - THE PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. MIKE STEVE Y BASMAN AND RASHID MANGTOMA Y NONI, Accused-Appellants.

  • G.R. No. 201111, August 06, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. ALFREDO CERDON Y SANCHEZ, Accused-Appellant.

  • G.R. No. 200250, August 06, 2014 - UPSI PROPERTY HOLDINGS, INC., Petitioner, v. DIESEL CONSTRUCTION CO., INC., Respondent.

  • G.R. No. 182908, August 06, 2014 - HEIRS OF FRANCISCO I. NARVASA, SR., ANDHEIRS OF PETRA IMBORNAL AND PEDRO FERRER,REPRESENTED BY THEIR ATTORNEY-IN-FACT, MRS. REMEDIOS B. NARVASA-REGACHO, Petitioners, v. EMILIANA, VICTORIANO, FELIPE, MATEO, RAYMUNDO, MARIA,AND EDUARDO, ALL SURNAMED IMBORNAL, Respondents.

  • G.R. No. 204651, August 06, 2014 - OUR HAUS REALTY DEVELOPMENT CORPORATION, Petitioner, v. ALEXANDER PARIAN, JAY C. ERINCO, ALEXANDER CANLAS, BERNARD TENEDERO AND JERRY SABULAO, Respondents.

  • G.R. No. 207376, August 06, 2014 - AIDA PADILLA, Petitioner, v. GLOBE ASIATIQUE REALTY HOLDINGS CORPORATION, FILMAL REALTY CORPORATION, DELFIN S. LEE AND DEXTER L. LEE, Respondents.

  • G.R. No. 201483, August 04, 2014 - CONRADO A. LIM, Petitioner, v. HMR PHILIPPINES, INC., TERESA SANTOS-CASTRO, HENRY BUNAG AND NELSON CAMILLER, Respondents.

  • G.R. No. 191015, August 06, 2014 - PEOPLE OF THE PHILIPPINES, Petitioner, v. JOSE C. GO, AIDA C. DELA ROSA, AND FELECITAS D. NECOMEDES, Respondents.

  • G.R. No. 210619, August 20, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. CHARLES REYES Y MARASIGAN, Accused-Appellant.

  • G.R. No. 184982, August 20, 2014 - LAND BANK OF THE PHILIPPINES, Petitioner, v. JOSE T. LAJOM, REPRESENTED BY PORFIRIO RODRIGUEZ, FLORENCIA LAJOM GARCIA-DIAZ, FRANCISCO LAJOM GARCIA, JR., FERNANDO LAJOM RODRIGUEZ, TOMAS ATAYDE, AUGUSTO MIRANDA, JOSEFINA ATAYDE FRANCISCO, RAMON L. ATAYDE, AND BLESILDA ATAYDE RIOS, Respondents.; [G.R. NO. 185048] - JOSE T. LAJOM, REPRESENTED BY PORFIRIO RODRIGUEZ, FLORENCIA LAJOM GARCIA-DIAZ, FRANCISCO LAJOM GARCIA, JR., FERNANDO LAJOM RODRIGUEZ, TOMAS ATAYDE, AUGUSTO MIRANDA, JOSEFINA ATAYDE FRANCISCO, RAMON L. ATAYDE, AND BLESILDA ATAYDE RIOS, Petitioners, v. LAND BANK OF THE PHILIPPINES, Respondent.

  • G.R. No. 170139, August 05, 2014 - SAMEER OVERSEAS PLACEMENT AGENCY, INC., Petitioner, v. JOY C. CABILES, Respondent.

  • G.R. No. 206368, August 06, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. LEONARDO BATTAD, Accused-Appellant, MARCELINO BACNIS, Accused.

  • G.R. No. 181541, August 18, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. MARISSA MARCELO, Accused-Appellant.

  • G.R. No. 208469, August 13, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. SAMUEL “TIW-TIW” SANICO, Accused-Appellant.

  • G.R. No. 205870, August 13, 2014 - LEI SHERYLL FERNANDEZ, Petitioner, v. BOTICA CLAUDIO REPRESENTED BY GUADALUPE JOSE, Respondent.

  • G.R. No. 194390, August 13, 2014 - VENANCIO M. SEVILLA, Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent.

  • G.R. No. 198367, August 06, 2014 - OSG SHIPMANAGEMENT MANILA, INC., MERCEDES M. RAVANOPOLOUS, OSG SHIPMANAGEMENT (UK) LTD. & M/T DELPHINA, Petitioners, v. JOSELITO B. PELLAZAR, Respondent.

  • G.R. No. 192304, August 13, 2014 - ANCHOR SAVINGS BANK (now EQUICOM SAVINGS BANK), Petitioner, v. PINZMAN REALTY AND DEVELOPMENT CORPORATION, MARYLIN MAÑALAC AND RENATO GONZALES, Respondents.

  • G.R. No. 177845, August 20, 2014 - GRACE CHRISTIAN HIGH SCHOOL, REPRESENTED BY ITS PRINCIPAL, DR. JAMES TAN, Petitioner, v. FILIPINAS A. LAVANDERA, Respondent.

  • G.R. No. 200191, August 20, 2014 - LOURDES C. FERNANDEZ, Petitioner, v. NORMA VILLEGAS AND ANY PERSON ACTING IN HER BEHALF INCLUDING HER FAMILY, Respondents.

  • G.R. No. 206366, August 13, 2014 - PEOPLE OF THE PHILIPPINES, Appellee, v. EDUARDO BALAQUIT Y BALDERAMA, Appellant.

  • G.R. No. 192993, August 11, 2014 - WALLEM MARITIME SERVICES, INC., AND REGINALDO OBEN/WALLEM SHIPMANAGEMENT LIMITED, Petitioners, v. DONNABELLE PEDRAJAS AND SEAN JADE PEDRAJAS, Respondents.

  • G.R. No. 181723, August 11, 2014 - ELIZABETH DEL CARMEN, Petitioner, v. SPOUSES RESTITUTO SABORDO AND MIMA MAHILUM-SABORDO, Respondents.

  • A.M. No. RTJ-14-2390 (Formerly OCA I.P.I. No. 12-3923-RTJ), August 13, 2014 - JOSEPHINE JAZMINES TAN, Petitioner, v. JUDGE SIBANAH E. USMAN, REGIONAL TRIAL COURT, BRANCH 28, CATBALOGAN CITY, SAMAR, Respondent.

  • G.R. No. 212689, August 11, 2014 - ECE REALTY AND DEVELOPMENT, INC., Petitioner, v. HAYDYN HERNANDEZ,, Respondent.

  • G.R. Nos. 208828-29, August 13, 2014 - RICARDO C. SILVERIO, SR., Petitioner, v. RICARDO S. SILVERIO, JR., CITRINE HOLDINGS, INC., MONICA P. OCAMPO AND ZEE2 RESOURCES, INC., Respondents.

  • G.R. No. 171626, August 06, 2014 - OLONGAPO CITY, Petitioner, v. SUBIC WATER AND SEWERAGE CO., INC., Respondent.

  • G.R. No. 162230, August 12, 2014 - ISABELITA C. VINUYA, VICTORIA C. DELA PEÑA, HERMINIHILDA MANIMBO, LEONOR H. SUMAWANG, CANDELARIA L. SOLIMAN, MARIA L. QUILANTANG, MARIA L. MAGISA, NATALIA M. ALONZO, LOURDES M. NAVARO, FRANCISCA M. ATENCIO, ERLINDA MANALASTAS, TARCILA M. SAMPANG, ESTER M. PALACIO, MAXIMA R. DELA CRUZ, BELEN A. SAGUM, FELICIDAD TURLA, FLORENCIA M. DELA PEÑA, EUGENIA M. LALU, JULIANA G. MAGAT, CECILIA SANGUYO, ANA ALONZO, RUFINA P. MALLARI, ROSARIO M. ALARCON, RUFINA C. GULAPA, ZOILA B. MANALUS, CORAZON C. CALMA, MARTA A. GULAPA, TEODORA M. HERNANDEZ, FERMIN B. DELA PEÑA, MARIA DELA PAZ B. CULALA, ESPERANZA MANAPOL, JUANITA M. BRIONES, VERGINIA M. GUEVARRA, MAXIMA ANGULO, EMILIA SANGIL, TEOFILA R. PUNZALAN, JANUARIA G. GARCIA, PERLA B. BALINGIT, BELEN A. CULALA, PILAR Q. GALANG, ROSARIO C. BUCO, GAUDENCIA C. DELA PEÑA, RUFINA Q. CATACUTAN, FRANCIA A. BUCO, PASTORA C. GUEVARRA, VICTORIA M. DELA CRUZ, PETRONILA O. DELA CRUZ, ZENAIDA P. DELA CRUZ, CORAZON M. SUBA, EMERINCIANA A. VINUYA, LYDIA A. SANCHEZ, ROSALINA M. BUCO, PATRICIA A. BERNARDO, LUCILA H. PAYAWAL, MAGDALENA LIWAG, ESTER C. BALINGIT, JOVITA A. DAVID, EMILIA C. MANGILIT, VERGINIA M. BANGIT, GUILERMA S. BALINGIT, TERECITA PANGILINAN, MAMERTA C. PUNO, CRISENCIANA C. GULAPA, SEFERINA S. TURLA, MAXIMA B. TURLA, LEONICIA G. GUEVARRA, ROSALINA M. CULALA, CATALINA Y. MANIO, MAMERTA T. SAGUM, CARIDAD L. TURLA, et al. in their capacity and as members of the “Malaya Lolas Organizations,” Petitioners, v. THE HONORABLE EXECUTIVE SECRETARY ALBERTO G. ROMULO, THE HONORABLE SECRETARY OF FOREIGN AFFAIRS DELIA DOMINGO-ALBERT, THE HONORABLE SECRETARY OF JUSTICE MERCEDITAS N. GUTIERREZ, AND THE HONORABLE SOLICITOR GENERAL ALFREDO L. BENIPAYO,, Respondents.

  • G.R. No. 173082, August 06, 2014 - PALM AVENUE HOLDING CO., INC., AND PALM AVENUE REALTY AND DEVELOPMENT CORPORATION, Petitioners, v. SANDIGANBAYAN 5TH DIVISION, REPUBLIC OF THE PHILIPPINES, REPRESENTED BY THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT (PCGG), Respondent.; [G.R. No. 195795] - REPUBLIC OF THE PHILIPPINES, REPRESENTED BY THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT, Petitioner, v. HON. SANDIGANBAYAN, PALM AVENUE REALTY AND DEVELOPMENT CORPORATION AND PALM AVENUE HOLDING COMPANY, INC., Respondents.

  • G.R. Nos. 212536-37, August 27, 2014 - COMMISSIONER OF INTERNAL REVENUE AND COMMISSIONER OF CUSTOMS, Petitioners, v. PHILIPPINE AIRLINES, INC., Respondent.

  • G.R. No. 212953, August 05, 2014 - JOSE TAPALES VILLAROSA, Petitioner, v. ROMULO DE MESA FESTIN AND COMMISSION ON ELECTIONS,, Respondent.

  • G.R. No. 211049, August 06, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. ROMEO CLOSA Y LUALHATI, Accused-Appellant.

  • G.R. No. 177616, August 27, 2014 - HEIRS OF SPOUSES JOAQUIN MANGUARDIA and SUSANA MANALO, namely: DANILO MANGUARDIA, ALMA MANGUARDIA, GEMMA MANGUARDIA, RODERICK MANGUARDIA, MADELINE MANGUARDIA, joined by her husband, RODRIGO VILLARANTE, ALAN MANGUARDIA, ROSE MANGUARDIA, joined by her husband, LEOPOLDO ADRID, JR., RONALD MANGUARDIA, JOEBERT MANGUARDIA, and RANDY MANGUARDIA; HEIRS OF SPOUSES LEONARDO ARAZA and REBECCA ARROYO, namely: MARY MAGDALENA ARAZA,* joined by her husband CARLITO VILLANUEVA, NENITA ARAZA, joined by her husband, LEONARDO BADE, ANTONIO ARAZA, and the children of ENECITA ARAZA- VARGAS, namely: GADFRY VARGAS, GINA VARGAS, JOEL VARGAS, MARY GRACE VARGAS, ANA MAE VARGAS, and the minor JUNAR VARGAS, represented by his guardian ad litem MAGDALENA ARAZA-VILLANUEVA, and THE REGISTER OF DEEDS OF CAPIZ, Petitioners, v. HEIRS OF SIMPLICIO VALLES and MARTA VALLES, represented by GRACIANO VALLES, SULPICIO VALLES, TERESITA VALLES, joined by her husband, LEOPOLDO ALAIR, and PRESENTACION CAPAPAS-VALLES, Respondents.

  • G.R. No. 193791, August 02, 2014 - PRIMANILA PLANS, INC., HEREIN REPRESENTED BY EDUARDO S. MADRID, Petitioner, v. SECURITIES AND EXCHANGE COMMISSION, Respondent.

  • G.R. No. 198342, August 13, 2014 - REMEDIOS O. YAP, Petitioner, v. ROVER MARITIME SERVICES CORPORATION, MR. RUEL BENISANO AND/OR UCO MARINE CONTRACTING W.L.L., Respondents.

  • G.R. No. 208170, August 20, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. PETRUS YAU A.K.A. “JOHN” AND “RICKY” AND SUSANA YAU Y SUMOGBA A.K.A. “SUSAN”, Accused-Appellants.

  • G.R. No. 207992, August 11, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. ROBERTO HOLGADO Y DELA CRUZ AND ANTONIO MISAREZ Y ZARAGA, Accused-Appellants.

  • G.R. No. 171836, August 11, 2014 - DEPARTMENT OF AGRARIAN REFORM, REPRESENTED BY HON. NASSER C. PANGANDAMAN, IN HIS CAPACITY AS DAR-OIC SECRETARY, Petitioner, v. SUSIE IRENE GALLE, RESPONDENT., G.R. NO. 195213 - LAND BANK OF THE PHILIPPINES, Petitioner, v. SUSIE IRENE GALLE, SUBSTITUTED BY HER HEIRS, NAMELY HANS PETER, CARL OTTO, FRITZ WALTER, AND GEORGE ALAN, ALL SURNAMED REITH, Respondents.

  • G.R. No. 196040, August 26, 2014 - FE H. OKABE, Petitioner, v. ERNESTO A. SATURNINO, Respondent.

  • G.R. No. 203048, August 13, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. RUSTY BALA, Accused-Appellant.

  • G.R. No. 213181, August 19, 2014 - FRANCIS H. JARDELEZA, Petitioner, v. CHIEF JUSTICE MARIA LOURDES P. A. SERENO, THE JUDICIAL AND BAR COUNCIL AND EXECUTIVE SECRETARY PAQUITO N. OCHOA, JR., Respondents.

  • G.R. No. 200987, August 20, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. RONALDO BAYAN Y NERI, Accused-Appellant.

  • G.R. No. 207348, August 20, 2014 - ROWENA R. SOLANTE, Petitioner, v. COMMISSION ON AUDIT, CHAIRPERSON MA. GRACIA PULIDO-TAN, COMMISSIONER JUANITO G. ESPINO, JR., COMMISSIONER HEIDI L. MENDOZA, AND FORTUNATA M. RUBICO, DIRECTOR IV, COA COMMISSION SECRETARIAT, in their official capacities, Respondents.

  • G.R. No. 166944, August 18, 2014 - JUANITO MAGSINO, Petitioner, v. ELENA DE OCAMPO AND RAMON GUICO, Respondents.

  • G.R. No. 175689, August 13, 2014 - GEORGE A. ARRIOLA, Petitioner, v. PILIPINO STAR NGAYON, INC. AND/OR MIGUEL G. BELMONTE, Respondents.

  • G.R. No. 189061, August 06, 2014 - MIDWAY MARITIME AND TECHNOLOGICAL FOUNDATION, REPRESENTED BY ITS CHAIRMAN/PRESIDENT PHD IN EDUCATION DR. SABINO M. MANGLICMOT, Petitioner, v. MARISSA E. CASTRO, ET AL., Respondents.

  • G.R. No. 199420, August 27, 2014 - PHILNICO INDUSTRIAL CORPORATION, Petitioner, v. PRIVATIZATION AND MANAGEMENT OFFICE, Respondent.; G.R. NO. 199432 - PRIVATIZATION AND MANAGEMENT OFFICE, Petitioner, v. PHILNICO INDUSTRIAL CORPORATION, Respondent.

  • G.R. No. 195432, August 27, 2014 - EDELINA T. ANDO, Petitioner, v. DEPARTMENT OF FOREIGN AFFAIRS, Respondent.

  • G.R. No. 200645, August 20, 2014 - PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. WENDEL OCDOL Y MENDOVA, EDISON TABIANAN, AND DANTE BORINAGA, ACCUSED. WENDEL OCDOL Y MENDOVA, Accused-Appellant.

  • G.R. No. 172404, August 13, 2014 - PEOPLE’S TRANS-EAST ASIA INSURANCE CORPORATION, A.K.A. PEOPLE'S GENERAL INSURANCE CORPORATION, Petitioner, v. DOCTORS OF NEW MILLENNIUM HOLDINGS, INC., Respondent.

  • A.M. No. P-06-2227 [Formerly A.M. No. 06-6-364-RTC], August 19, 2014 - OFFICE OF THE COURT ADMINISTRATOR, Complainant, v. ATTY. MARIO N. MELCHOR, JR., FORMER CLERK OF COURT VI, REGIONAL TRIAL COURT, BRANCH 16, NAVAL, BILIRAN (NOW PRESIDING JUDGE, MUNICIPAL CIRCUIT TRIAL COURT, CALUBIAN-SAN ISIDRO, LEYTE), Respondent.

  • G.R. No. 207253, August 20, 2014 - CRISPIN B. LOPEZ, Petitioner, v. IRVINE CONSTRUCTION CORP. AND TOMAS SY SANTOS, Respondents.

  • G.R. No. 200538, August 13, 2014 - CITY OF DAVAO, Petitioner, v. COURT OF APPEALS AND BENJAMIN C. DE GUZMAN, Respondents.

  • G.R. No. 188289, August 20, 2014 - DAVID A. NOVERAS, Petitioner, v. LETICIA T. NOVERAS, Respondent.

  • G.R. No. 203655, August 13, 2014 - SM LAND, INC., Petitioner, v. BASES CONVERSION AND DEVELOPMENT AUTHORITY AND ARNEL PACIANO D. CASANOVA, ESQ., IN HIS OFFICIAL CAPACITY AS PRESIDENT AND CEO OF BCDA, Respondents.

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    G.R. No. 192304, August 13, 2014 - ANCHOR SAVINGS BANK (now EQUICOM SAVINGS BANK), Petitioner, v. PINZMAN REALTY AND DEVELOPMENT CORPORATION, MARYLIN MAÑALAC AND RENATO GONZALES, Respondents.

      G.R. No. 192304, August 13, 2014 - ANCHOR SAVINGS BANK (now EQUICOM SAVINGS BANK), Petitioner, v. PINZMAN REALTY AND DEVELOPMENT CORPORATION, MARYLIN MAÑALAC AND RENATO GONZALES, Respondents.

    PHILIPPINE SUPREME COURT DECISIONS

    FIRST DIVISION

    G.R. No. 192304, August 13, 2014

    ANCHOR SAVINGS BANK (now EQUICOM SAVINGS BANK), Petitioner, v. PINZMAN REALTY AND DEVELOPMENT CORPORATION, MARYLIN MAÑALAC AND RENATO GONZALES, Respondents.

    D E C I S I O N

    VILLARAMA, JR., J.:

    Before us is a petition for review on certiorari assailing the Decision1 dated September 11, 2009 and Resolution2 dated May 17, 2010 of the Court of Appeals (CA) in CA-G.R. CV No. 89420.  The CA had reversed and set aside the Decision3 dated March 16, 2007 of the Regional Trial Court (RTC), Branch 147 of Makati City, in Civil Case No. 00-1094.

    The facts, as culled from the records, follow:cralawlawlibrary

    Sometime in December 1997, the private respondents obtained a loan from the petitioner in the amount of P3,000,000 secured by a real estate mortgage over parcels of land located in Cubao, Quezon City which were registered in the name of herein private respondent Marylin Mañalac.  Private respondent Mañalac executed a Promissory Note4 and Disclosure Statement5 in favor of the petitioner in the total amount of P3,308,447.74 which amount already included payment for three months interest.  The loan documents stipulated that the first installment shall be for P148,640 and will be due on December 26, 1997, the second installment will be for the same amount and shall be due on January 26, 1998, and the third installment will be for P3,011,167.74 and will be due on February 26, 1998.  Moreover, the Promissory Note and Disclosure Statement imposed a monthly 5% late-payment charge, 25% attorney’s fees, and 25% liquidated damages in case of unpaid installments on the part of private respondent Mañalac.

    On December 3, 1997, the proceeds of the loan were released to private respondent Mañalac who then issued three checks for the payment of monthly installments to the petitioner.  The first check was for P144,000 and was for the first installment due on December 26, 1997.  The second check in the same amount was for the second installment due on January 26, 1998.   Finally, the third check in the amount of P3,300,000 corresponded to the last installment due on February 26, 1998.  However, among the three checks, only the first one was cleared for payment, and the private respondents incurred an outstanding balance of P3,012,252.32 which they failed to settle.   Private respondent Mañalac continued her correspondence with the petitioner through its Vice President to ask for an update on their account.6cralawred

    Subsequently, the private respondents received a Second Notice of Extrajudicial Sale7 for the satisfaction of an obligation, which as of October 15, 1998 amounted to P4,577,269.42, excluding penalties, charges, attorney’s fees and costs of foreclosure.  On June 1, 1999, the assailed foreclosure sale was held where the petitioner emerged as the highest bidder of the disputed properties, and a Certificate of Sale8 was issued in favor of the petitioner.  Still, private respondent Mañalac allegedly tried to settle the loan but was surprised when petitioner issued a Statement of Account9 stating that as of October 29, 1999, Pinzman Realty owed the petitioner P12,525,673.44 computed as follows:chanRoblesvirtualLawlibrary

    STATEMENT OF ACCOUNT
    AS OF OCTOBER 29, 1999
    PARTICULAR
    PAYSYS METHOD
    Principal Balance
    3,012,525.32
     
    Interest
    2,026,062.38
     
    Penalty Interest @ 60%
    3,129,879.85
     
    Forfeited Rebate
    8,620.00
     
    Litigation Expenses
    158,595.41
     
    Others
          14,766.00
     
    Sub-total
    8,350,448.96
     
    Attorney’s fees
    2,087,612.24
     
    Liquidated Damages
       2,087,612.24
     
    Total Amount Due
      12,525,673.44
     

    As private respondent Mañalac failed to redeem the properties, ownership of the foreclosed properties was eventually consolidated in petitioner’s name.  Petitioner later succeeded in acquiring certificates of title over the disputed properties.

    On September 6, 2000, private respondents filed a Complaint for the Annulment of Extrajudicial Foreclosure of Mortgaged Properties, Auction Sale, Certificate of Sale and Damages10 against the petitioner before the RTC.  The private respondents prayed for the nullification of the foreclosure sale alleging that the amount demanded in the Notice of Extrajudicial Sale was exorbitant and excessive. Specifically, instead of the amount of P4,577,269.42 as demanded therein, the private respondents contended that the proper amount should only be P3,825,907.16 if the balance of the loan is computed with interest at the rate of 3% reckoned from the date of last payment.

    In its Decision dated March 16, 2007, the RTC dismissed the complaint and found that the private respondents did not question the compliance of the petitioner with the procedural requirements for extrajudicial foreclosure.  Moreover, the RTC ruled that the private respondents did not take any measures to enjoin the foreclosure sale despite their knowledge of the alleged usurious interest charges.

    On appeal, the CA reversed and set aside the court a quo, and held as follows:chanRoblesvirtualLawlibrary

    WHEREFORE, the foregoing considered, the instant appeal is hereby GRANTED and the assailed Decision dated 16 March 2007 is REVERSED and SET ASIDE.  Accordingly, the present complaint is hereby GRANTED and the Extra-judicial Foreclosure, Auction Sale, Certificate of Sale and Certificates of Title issued in favor of appellee bank are hereby ANNULLED, without prejudice to the right of the latter to re-institute foreclosure proceedings based on the recomputed amount of the unpaid loan as herein provided.  No costs.

    SO ORDERED.11

    The CA declared that the loan agreement as embodied in the Promissory Note and Disclosure Statement failed to stipulate a rate of interest.  Petitioner bank likewise admitted that there is no written agreement to prove that the parties agreed to the interest rate of 30.33% per annum on the loan.  Thus, the CA held that petitioner erred in unilaterally imposing an interest rate of 30.33% on the unpaid portion of the loan.  The CA held that said rate was excessive, iniquitous, unconscionable and blatantly contrary to law and morals.  Further, the CA ruled that the imposition of such unlawful interest rate will nullify the foreclosure sale arising therefrom.  However, this was without prejudice to the lender’s right to recover the principal of the loan and the validity of the terms of the real estate mortgage.  In particular, the CA affirmed the subsistence of the principal amount due without the unlawful interest rate.  In its place, the CA imposed a legal interest rate of 12% per annum.  Moreover, the CA annulled the previously held foreclosure sale, but upheld the right of the mortgagee to institute another foreclosure proceedings upon default of the mortgagor.

    Thus, the petitioner filed the instant petition for review on certiorari raising the following issues:chanRoblesvirtualLawlibrary

    I

    WHETHER OR NOT ARTICLE 195612 OF THE CIVIL CODE REQUIRES THE RATE OF INTEREST TO BE STIPULATED; andChanRoblesVirtualawlibrary

    II

    WHETHER OR NOT FORECLOSURE OF MORTGAGE WAS VALID.13

    Essentially, the sole issue for our resolution is whether the imposition of usurious interest rates on a loan obligation secured by a real estate mortgage will result in the invalidity of the subsequent foreclosure sale of the mortgage.

    Petitioner argues that the CA was under the mistaken belief that the failure to stipulate a rate of interest was equivalent to the failure to provide for the payment of interest.  Thus, petitioner establishes a distinction between stipulation of interest rate and stipulation of interest.  Petitioner further contends that while the Promissory Note and Disclosure Statement did not provide a specific interest rate, the parties still agreed to the payment of interest based on the tenor of the language used therein.  This, petitioner stresses, militates against the ruling of the CA that there was a unilateral imposition of interest rate.

    Petitioner further claims that the defect in the Second Notice of Extrajudicial Sale cannot affect the validity of the foreclosure sale.  Based on case law, petitioner argues that discrepancies between the Notice of Foreclosure Sale and the actual indebtedness of the mortgagor will not result in the annulment of the foreclosure sale as long as the objectives of the notice are attained.  Petitioner likewise argues that the action of the private respondents which was filed after the redemption period, was barred by laches.

    On the other hand, private respondents claim that the imposition of interest rates and penalty charges by petitioner should be struck down as these were manifestly excessive, unreasonable, and unconscionable.  Private respondents maintain that the CA correctly ruled that the foreclosure sale which arose from the enforcement of usurious interest rates and penalty charges should be nullified.

    The petition lacks merit.

    It is jurisprudential axiom that a foreclosure sale arising from a usurious mortgage cannot be given legal effect.14  Relevantly, in Heirs of Zoilo Espiritu v. Sps. Landrito,15 we struck down a foreclosure sale where the amount declared as mortgage indebtedness involved excessive, unreasonable, and unconscionable interest charges. In no uncertain terms, we ruled that a mortgagor cannot be legally compelled to pay for a grossly inflated loan:chanRoblesvirtualLawlibrary

    Since the Spouses Landrito, the debtors in this case, were not given an opportunity to settle their debt, at the correct amount and without the iniquitous interest imposed, no foreclosure proceedings may be instituted. A judgment ordering a foreclosure sale is conditioned upon a finding on the correct amount of the unpaid obligation and the failure of the debtor to pay the said amount. In this case, it has not yet been shown that the Spouses Landrito had already failed to pay the correct amount of the debt and, therefore, a foreclosure sale cannot be conducted in order to answer for the unpaid debt. The foreclosure sale conducted upon their failure to pay P874,125 in 1990 should be nullified since the amount demanded as the outstanding loan was overstated; consequently it has not been shown that the mortgagors – the Spouses Landrito, have failed to pay their outstanding obligation. Moreover, if the proceeds of the sale together with its reasonable rates of interest were applied to the obligation, only a small part of its original loans would actually remain outstanding, but because of the unconscionable interest rates, the larger part corresponded to said excessive and iniquitous interest.16chanrobleslaw

    Recently, in Castro v. Tan,17 we affirmed the above doctrinal pronouncements as we also nullified a foreclosure proceeding where the amount demanded as outstanding loan was clearly overstated due to exorbitant interest rates.

    In the case at bar, the unlawful interest charge which led to the demand for P4,577,269.42 as stated in the Notice of Extrajudicial Sale resulted in the invalidity of the subsequent foreclosure sale held on June 1, 1999.  The private respondents cannot be obliged to pay an inflated or overstated mortgage indebtedness on account of excessive interest charges without offending the basic tenets of due process and equity.

    The argument of the petitioner that defects in the Notice of Sale cannot affect the validity of the foreclosure sale cannot be given credence.  In relying on a long litany of cases, the petitioner failed to realize that the issue in those cases was the validity of the Notice of Sale per se. Meanwhile, in the present case, the issue is the validity of the foreclosure sale in view of the presence of usurious interest charges.

    WHEREFORE, the petition for review on certiorari is hereby DENIED. The Decision dated September 11, 2009 and Resolution dated May 17, 2010 of the Court of Appeals in CA-G.R. CV No. 89420 are AFFIRMED.

    With costs against petitioner.

    SO ORDERED.

    Sereno, C.J., Chairperson, Bersamin, Mendoza,* and Reyes, JJ., concur..

    Endnotes:


    * Designated additional member per Special Order No. 1738 dated July 31, 2014.

    1Rollo, pp. 28-38. Penned by Associate Justice Josefina Guevara-Salonga with Associate Justices Celia C. Librea-Leagogo and Priscilla J. Baltazar-Padilla concurring.

    2 Id. at 40-41.

    3 Id. at 49-54.  Penned by Presiding Judge Maria Cristina J. Cornejo.

    4 Records, p. 6.

    5 Id. at 7.

    6Rollo, pp. 29-30.

    7 Records, pp. 34-35.  The Second Notice was dated April 28, 1999.

    8 Id. at 59-60.

    9 Id. at 36.

    10 Id. at 1-5.

    11 Rollo, pp. 37-38.

    12 Art. 1956.  No interest shall be due unless it has been expressly stipulated in writing.

    13Rollo, p. 14.

    14 See Puerto v. Court of Appeals, 432 Phil. 743, 759 (2002).

    15 549 Phil. 180, 193 (2007).

    16 Id. at 194-195.

    17 G.R. No. 168940, November 24, 2009, 605 SCRA 231, 243-244.

    G.R. No. 192304, August 13, 2014 - ANCHOR SAVINGS BANK (now EQUICOM SAVINGS BANK), Petitioner, v. PINZMAN REALTY AND DEVELOPMENT CORPORATION, MARYLIN MAÑALAC AND RENATO GONZALES, Respondents.


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