Case Digest (G.R. No. L-27033)
Facts:
Polytrade Corporation v. Victoriano Blanco, G.R. No. L-27033, October 31, 1969, the Supreme Court En Banc, Sanchez, J., writing for the Court.This is an action originally filed in the Court of First Instance of Bulacan (Civil Case No. 224-V) by Polytrade Corporation (plaintiff-appellee), a Makati-based corporation, to recover the purchase price for raw hide deliveries from Victoriano Blanco (defendant-appellant), a resident of Meycauayan, Bulacan. Defendant moved to dismiss for improper venue, asserting written contracts covering the transactions stipulated that "The parties agree to sue and be sued in the Courts of Manila." The trial court overruled the motion; Blanco did not answer the complaint and was subsequently declared in default. On September 21, 1966, the trial court rendered a default judgment ordering defendant to pay specified sums for each of four causes of action, interest at 1% per month on each cause from various dates, attorney's fees equal to 25% of the principal for each cause, and costs, with P400 credited against the total.
Defendant appealed. The Supreme Court reviewed the appeal. The Court examined (a) whether venue was properly laid in Bulacan under Section 2(b), Rule 4 and the effect of any written venue stipulation under Section 3, Rule 4 of the Rules of Court; (b) whether interest at 1% per month was contractually supported by the agreements; and (c) whether the contractual attorney's fees fixed at 25% were iniquitous or unconscionable under Article 2227 of the Civil Code....(Pro-only)
Issues:
- Was venue properly laid in Bulacan despite the contractual clause providing that "The parties agree to sue and be sued in the Courts of Manila"?
- Was the award of interest at 1% per month proper and supported by the contracts?
- Were the contractual attorney's fees of 25% of principal unconscionable or therefore subject to equitable reduction under A...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)