Title
Gotesco Properties, Inc. vs. International Exchange Bank
Case
G.R. No. 212262
Decision Date
Aug 26, 2020
Gotesco defaulted on a restructured loan; IBank invoked acceleration clause, demanding full payment. Courts upheld IBank's right, enforcing the Compromise Agreement upon Gotesco's failure to pay quarterly amortizations.
A

Case Digest (G.R. No. 45134)

Facts:

Gotesco Properties, Inc., as borrower, and International Exchange Bank (now Union Bank of the Philippines), as lender, executed a Credit Agreement secured by a real estate mortgage; after foreclosure Gotesco sued and, on December 14, 2001, the Regional Trial Court approved a Compromise Agreement restructuring Gotesco’s P256,740,000.00 loan into a ten-year term with quarterly amortizations. In October 2009 respondent moved for execution; Judge Wilfredo De Joya Mayor denied the motion as premature in a June 16, 2010 Order, but Judge Ernesto L. Marajas granted respondent’s motion for reconsideration and ordered execution in an August 18, 2011 Resolution; the Court of Appeals denied Gotesco’s certiorari petition and this Court affirmed the denial of the Petition for Review on Certiorari.

Issues:

  • Did Judge Ernesto L. Marajas commit grave abuse of discretion amounting to lack or excess of jurisdiction by granting respondent’s motion for reconsideration and setting aside the June 16, 2010 Order?
  • Does Union Bank of the Philippines have the right to cause immediate execution of the December 14, 2001 judgment on the Compromise Agreement upon Gotesco’s failure to pay its quarterly amortizations?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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