Title
Odiamar vs. Valencia
Case
G.R. No. 213582
Decision Date
Sep 12, 2018
A dispute over a P1.4M loan obligation; SC imposed legal interest (12% then 6%) but rejected respondent's claim to increase loan to P2.1M.

Case Digest (G.R. No. 213582)
Expanded Legal Reasoning Model

Facts:

  • Parties and Loan Agreement
    • Petitioner Nympha S. Odiamar borrowed from respondent Linda Odiamar Valencia the principal sum of ₱1,400,000.00.
    • Respondent later claimed an indebtedness of ₱2,100,000.00, but the courts below recognized only ₱1,400,000.00 as the original loan.
  • Procedural History
    • The Regional Trial Court of San Jose, Camarines Sur, Branch 58 awarded respondent the remaining loan balance of ₱1,010,049.00, plus attorney’s fees (₱10,000.00), litigation expenses (₱19,662.78), and costs of suit.
    • In C.A. G.R. CV No. 93624, the Court of Appeals affirmed with modification, ordering payment of ₱1,010,049.00.
    • On June 28, 2016, the Supreme Court affirmed the CA decision.
    • Respondent filed a Motion for Reconsideration dated September 1, 2016, seeking:
      • Imposition of legal interest on the monetary award; and
      • A declaration that the loan obligation was ₱2,100,000.00.

Issues:

  • Whether monetary interest can be imposed on the loan in the absence of a written stipulation.
  • Whether compensatory (legal) interest may be imposed on the unpaid loan.
  • Whether the original loan obligation is ₱1,400,000.00 or ₱2,100,000.00.
  • Whether respondent is entitled to legal interest on the attorney’s fees, litigation expenses, and costs of suit.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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