Case Digest (G.R. No. 215014) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Planters Development Bank v. Spouses Lopez, the spouses Ernesto and Florentina Lopez obtained in May 1983 a ₱3,000,000 real estate loan from Planters Development Bank to finance a four-story dormitory on land covered by TCT No. T-16233. The May 18, 1983 agreement provided a 14-year term at 21% p.a. interest, with partial disbursements upon submission of accomplishment reports. A first amendment on July 21, 1983 raised the rate to 23% p.a. and shortened the term to three years. A second amendment on March 9, 1984 increased the rate to 25% p.a. and conditioned releases on the bank’s fund availability. A third amendment on April 25, 1984 increased the loan to ₱4,200,000 at 27% p.a., shortened the term to one year, and extended availability only until June 30, 1984. On August 15, 1984, the bank unilaterally raised the rate to 32% p.a. and thereafter refused to release the remaining ₱700,000. The Lópezes filed for rescission and damages in October 1984; the bank counterclaimed for Case Digest (G.R. No. 215014) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Loan Agreement and Amortization
- May 18, 1983 – Spouses Ernesto and Florentina Lopez obtained a P3,000,000 real estate loan from Planters Development Bank to build a four-story concrete dormitory; 14-year term; 21% p.a. interest; secured by land under TCT No. T-16233.
- July 21, 1983 – First amendment: interest raised to 23% p.a.; term shortened to 3 years.
- March 9, 1984 – Second amendment: interest raised to 25% p.a.; releases conditioned on bank’s fund availability.
- April 25, 1984 – Third amendment: loan increased to P4,200,000; interest 27% p.a.; one-year term; releases until June 30, 1984; mortgage coverage increased to P4.2 M.
- August 15, 1984 – Bank unilaterally increased interest to 32% p.a.
- Project Completion and Dispute
- Lopezes built a six-story structure; bank withheld P700,000 balance for alleged non-submission of progress reports and deviation from plans.
- October 13, 1984 – Lopezes filed for rescission of loan agreements and damages; bank counterclaimed P3.5 M plus interest and damages.
- November 16, 1984 – Bank foreclosed and sold the mortgaged property to third-party purchasers.
Issues:
- Is the CA’s July 30, 2007 amended decision final and executory?
- Did the spouses Lopez violate the loan agreement by:
- Failing to submit accomplishment reports?
- Deviating from the approved four-story project?
- Did Planters Bank substantially breach the loan agreement by withholding P700,000?
- Is the amount and terms of awards rendered by the CA proper?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)