Case Digest (G.R. No. 163825) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Violeta Tudtud Banate et al. v. Philippine Countryside Rural Bank, Inc. and Teofilo Soon, Jr. (G.R. No. 163825, July 13, 2010), spouses Rosendo Maglasang and Patrocinia Monilar obtained on July 22, 1997 a P1,070,000.00 loan from the Philippine Countryside Rural Bank, Inc. (PCRB), evidenced by a promissory note due January 18, 1998, and secured by a real estate mortgage over Lot 12868-H-3-C registered under TCT No. 82746. That lot belonged to petitioners Mary Melgrid and Bonifacio Cortel, the Maglasangs’ daughter and son-in-law. The Maglasangs also secured two other PCRB loans with mortgages on different properties. Before the January 1998 maturity, the Maglasangs and the Cortels sought PCRB’s consent to sell Lot 12868-H-3-C and to release it from mortgage, arguing that other security sufficed for the remaining debts. Branch Manager Pancrasio Mondigo allegedly agreed verbally but required full payment of the P1,070,000.00 loan first. Relying on that promise, the Cortels sold t Case Digest (G.R. No. 163825) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Loan Transaction and Mortgage
- On July 22, 1997, spouses Rosendo Maglasang and Patrocinia Monilar obtained a loan of ₱1,070,000.00 from Philippine Countryside Rural Bank (PCRB), evidenced by a promissory note due January 18, 1998.
- To secure payment, they executed a real estate mortgage in favor of PCRB over Lot 12868-H-3-C (275 sq.m., Barangay Pitogo, Consolacion, Cebu City) and the house thereon, owned by petitioners Mary Melgrid and Bonifacio Cortel (their daughter and son-in-law).
- Additional Loans and Agreement to Sell
- The Maglasang spouses obtained two other loans from PCRB, each evidenced by separate promissory notes and secured by mortgages on other properties.
- In November 1997, before the subject loan’s maturity, the Maglasang and Cortel spouses sought PCRB’s permission to sell the mortgaged property and to release it from the mortgage, alleging that PCRB’s branch manager, Pancrasio Mondigo, verbally agreed provided full payment of the subject loan.
- Sale, Payment and Refusal to Release Mortgage
- Petitioners sold the mortgaged property to Violeta Banate for ₱1,750,000.00; the proceeds paid off the subject loan. PCRB returned the owner’s duplicate certificate of title to Banate, who secured a new title still carrying the mortgage lien.
- PCRB refused to execute a Deed of Release of Mortgage, invoking the cross-collateral (dragnet) clause covering all three loans; petitioners then filed an action for specific performance and damages in RTC.
- Procedural History
- RTC (June 27, 2001) granted specific performance, ordered PCRB to execute the release deed, and awarded moral damages and attorney’s fees on the basis of the verbal agreement and excess title release.
- CA (December 19, 2003 decision; May 5, 2004 resolution) reversed the RTC, ruling that Mondigo lacked authority to modify the written mortgage contract, and that the cross-collateral stipulation remained binding.
Issues:
- Whether the verbal agreement between petitioners and branch manager Mondigo novated or modified the mortgage contract’s cross-collateral stipulation and is binding on PCRB.
- If novation is invalid, whether purchaser Banate can claim restitution of the amount paid on the theory that the agreement should be rescinded.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)