Facts:
Clara Tambunting de Legarda et al., plaintiffs, filed a complaint on June 3, 1944 in the Court of First Instance of Manila against
William J. B. Burke, alleging his unjustified refusal to accept payment in discharge of a mortgage indebtedness and praying that he be ordered to accept P75,920.83 deposited in court, to execute a release of mortgage, and to pay damages; Burke answered on July 19, 1944, alleging that by agreement of May 26, 1944 he had condoned interests due and to become due until the termination of the war on condition that payment would be made after the war, and he later filed a supplemental answer and counterclaim seeking foreclosure; the trial court initially ordered acceptance of the deposit and a release of mortgage, but Burke moved to set aside that decision on January 14, 1945 and, after the record was reconstituted post-liberation and his supplemental pleadings were at first denied on December 24, 1945, the Supreme Court in G.R. L-831 held that the supplemental answer should have been allowed and remanded for a new trial; Burke died on July 23, 1946 and on March 31, 1949 a motion was filed to substitute
Victoria Desbarats Miailhe as defendant and to admit an amended supplemental answer, which this court allowed on April 2, 1949; after the new trial Judge Conrado Sanchez rendered judgment on August 5, 1949 dismissing the complaint and ordering plaintiff Clara Tambunting de Legarda to pay P70,000 with interest at 3 1/2 per cent per annum from January 1, 1942, plus P2,500 as costs and attorney’s fees and further ordering sale of the mortgaged property in case of nonpayment, and the plaintiffs appealed to the Supreme Court which rendered its decision on April 28, 1951.
Issues:
Was the wartime agreement between the parties a reduction of the annual interest to three and one-half per cent beginning January 1, 1942, or an agreement by Burke to condone interests then due and to become due until the termination of the war with the understanding that payment would be deferred until after the war? Did the consignation made by plaintiffs in June 1944 by means of a certified check in Japanese military notes effect payment of the mortgage obligation or otherwise discharge the debt?
Ruling:
Ratio:
Doctrine: