Title
Diego vs. Ferdo
Case
G.R. No. L-15128
Decision Date
Aug 25, 1960
Mortgage dispute: Fernando executed a mortgage with Diego, failed to repay, claimed antichresis. Court ruled mortgage, ordered repayment with interest, deducting value of received fruits.

Case Digest (G.R. No. L-15128)
Expanded Legal Reasoning Model

Facts:

  • Mortgage execution and terms
    • On May 26, 1950, defendant Segundo Fernando executed a deed of mortgage (Exhibit “A”) over two registered parcels of land to secure a loan of ₱2,000, without interest, payable within four years.
    • Possession of the mortgaged properties was delivered to mortgagee Cecilio Diego.
  • Debtor’s default and foreclosure action
    • Defendant failed to repay the loan at the end of the four‐year term despite repeated demands.
    • Diego filed an action for foreclosure of mortgage; Fernando contended the contract was one of antichresis and claimed that Diego had collected 120 cavans of palay valued at ₱5,200, thereby overpaying the debt by ₱2,720.
  • Trial court findings and judgment
    • The Court of First Instance held that Exhibit “A” evidenced a true mortgage, noting that transfer of possession alone did not convert it into antichresis, and found that Diego collected only 65 cavans.
    • Judgment awarded Diego ₱2,000 with legal interest from filing, ₱500 attorney’s fees, costs, and foreclosure upon default.

Issues:

  • Whether the contract between the parties is a mortgage or an antichresis.
  • Whether legal interest may be awarded from the filing of the action despite the mortgagee’s possession and enjoyment of fruits.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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