Case Digest (G.R. No. 167724)
Facts:
- The case involves BPI Family Savings Bank, Inc. (petitioner) and Margarita Vda. de Coscolluela (respondent).
- Margarita and her late husband, Oscar Coscolluela, secured an agricultural sugar crop loan from Far East Bank & Trust Co. (FEBTC) for the crop years 1997 and 1998, totaling P13,592,492.00.
- They executed 67 promissory notes between August 29, 1996, and January 23, 1998.
- A real estate mortgage was executed on June 13, 1997, over a parcel of land in Bacolod City, securing loans for P7,000,000.00.
- The mortgage agreement allowed FEBTC to foreclose the property extrajudicially upon default.
- After Oscar's death, FEBTC sent a final demand letter to Margarita on March 10, 1999, for P19,482,168.31, which included principal, past due interests, and penalties.
- FEBTC initiated extrajudicial foreclosure proceedings on June 10, 1999, for P4,687,006.68 based on the first 33 promissory notes.
- Concurrently, FEBTC filed a complaint in the Regional Trial Court (RTC) of Makati City against Margarita for P12,672,000.31 under the remaining promissory notes.
- Margarita raised the defense of litis pendentia, claiming the complaint was barred due to the pending extrajudicial foreclosure.
- The RTC denied her demurrer to evidence, leading her to file a petition for certiorari with the Court of Appeals (CA).
- The CA ruled in her favor, stating that foreclosure and collection were alternative remedies, not cumulative.
- The petitioner filed a motion for reconsideration, which was denied, prompting the current petition for review.
Issue:
- (Unlock)
Ruling:
- The Supreme Court ruled that the petition for certiorari was a proper remedy as the RTC's order denying the demurrer to evidence was tainted with grave abuse of discretion.
- The Court upheld the CA's decision, affirming that the ...(Unlock)
Ratio:
- Generally, an order denying a motion to dismiss or a demurrer to evidence is interlocutory and not appealable; however, if it is tainted with grave abuse of discretion, it can be challenged through a petition for certiorari.
- The remedies of foreclosure and collection are alternative, meaning a creditor cannot pursue both simultaneously for the same cause of action.
- Since the petitioner opt...continue reading
Case Digest (G.R. No. 167724)
Facts:
The case involves BPI Family Savings Bank, Inc. (petitioner) and Margarita Vda. de Coscolluela (respondent). The events leading to the case began when Margarita and her late husband, Oscar Coscolluela, obtained an agricultural sugar crop loan from the Far East Bank & Trust Co. (FEBTC) for the crop years 1997 and 1998. The total loan amount was P13,592,492.00, evidenced by 67 promissory notes executed between August 29, 1996, and January 23, 1998. The couple also executed a real estate mortgage on June 13, 1997, over a parcel of land in Bacolod City, securing their loans with a fixed amount of P7,000,000.00. The mortgage agreement stipulated that upon default, the entire outstanding amount would become due, allowing FEBTC to foreclose the property extrajudicially.
After Oscar's death, FEBTC sent a final demand letter to Margarita on March 10, 1999, for the payment of P19,482,168.31, which included principal, past due interests, and penalties. When she failed to pay, FEBTC initiated extrajudicial foreclosure proceedings on June 10, 1999, for a portion of the loan amounting to P4,687,006.68, based on the first 33 promissory notes. Concurrently, FEBTC filed a complaint in the Regional Trial Court (RTC) of Makati City against Margarita for the collection of P12,672,000.31, representing the amounts due under the remaining promissory notes.
Margarita raised the defense of litis pendentia, arguing that the complaint was barred due to the pending extrajudicial foreclosure. The RTC denied her demurrer to evidence, leading...