Title
Pay vs. Vda. de Palanca
Case
G.R. No. L-29900
Decision Date
Jun 28, 1974
Creditor George Pay’s claim against Justo Palanca’s estate, based on a 1952 promissory note, was dismissed as it prescribed after the 10-year limit under the Civil Code.
A

Case Digest (G.R. No. L-29900)

Facts:

  • Parties
    • Petitioner-Appellant: George Pay, creditor under a promissory note executed by the late Justo Palanca and Rosa Gonzales Vda. de Carlos Palanca.
    • Oppositor-Appellee: Segundina Chua Vda. de Palanca, surviving spouse of Justo Palanca, who refused appointment as administratrix of his estate.
  • The Promissory Note
    • Dated January 30, 1952, signed jointly and severally by Justo Palanca and Rosa Gonzales Vda. de Carlos Palanca; principal sum of ₱26,900 with 12% annual interest.
    • Stipulated payment “upon receipt by either of the undersigned of cash payment from the Estate of the late Don Carlos Palanca or upon demand”; petitioner elected to rely on the “upon demand” clause.
  • Proceedings Below
    • Petition filed August 26, 1967, seeking appointment of Segundina Chua as administratrix over a residential property at 2656 Taft Avenue, Manila (assessed at ₱41,800), to enable presentation of creditor’s claim.
    • Lower Court Findings and Decision (July 24, 1968):
      • Refusal of the surviving spouse to act as administratrix;
      • Property no longer belonged to the debtor;
      • Action on the promissory note was demandable at once and, filed after more than ten years, was barred by the prescriptive period. Petition dismissed.

Issues:

  • Whether the action on the promissory note was barred by prescription under the Civil Code’s ten-year period for written contracts.
  • Whether other grounds (refusal of appointment as administratrix; property no longer in estate) independently warranted dismissal.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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