Case Digest (G.R. No. 138739)
Facts:
On March 2, 1991, Spouses Vicente and Maria Sumilang del Rosario (hereinafter respondents) jointly and severally executed and delivered a Promissory Note in favor of Radiowealth Finance Company (hereinafter petitioner) for ₱138,948.00, payable in twelve monthly installments of ₱11,579.00 each. The Note provided for a 2.5% monthly late‐payment penalty, an acceleration clause upon default, and attorney’s fees of 25% if suit was filed (10% otherwise). The respondents defaulted on their payments, and on June 7, 1993, the petitioner filed a complaint for sum of money before the Regional Trial Court (RTC) of Manila, Branch 14. During trial, petitioner presented documentary evidence—payment checks, demand letters, a ledger card, and dishonor slips—through a witness without personal knowledge, leading the RTC on November 4, 1994 to grant the respondents’ demurrer to evidence and dismiss the complaint for lack of cause of action. On appeal, the Court of Appeals (CA) reversed and set asidCase Digest (G.R. No. 138739)
Facts:
- Parties and Instrument
- Radiowealth Finance Company (petitioner)
- Spouses Vicente and Maria Sumilang del Rosario (respondents)
- Promissory Note Execution and Terms
- Date and principal: March 2, 1991; P138,948.00 payable in 12 installments of P11,579.00 each
- Penalty and acceleration clauses: 2.5% monthly late payment charge; full principal and charges due upon default; attorney’s/collection fees of 10% or 25% plus 10% liquidated damages
- Default and Trial Court Proceedings
- Respondents defaulted; checks dishonored; demand letters sent
- Complaint filed June 7, 1993 before RTC Manila, Branch 14
- Petitioner rested July 5, 1994; respondents filed demurrer to evidence July 29, 1994
- RTC granted demurrer and dismissed complaint November 4, 1994 for insufficient (hearsay) evidence
- Appeals
- Court of Appeals reversed and remanded for further proceedings (December 9, 1997 Decision; May 3, 1999 Resolution)
- Petitioner elevated case via Petition for Review on Certiorari to the Supreme Court
Issues:
- Whether the Court of Appeals erred in remanding the case instead of rendering judgment on the basis of petitioner’s evidence, considering:
- The legal effect of a demurrer to evidence reversed on appeal
- The date when the obligation under the Promissory Note became due and demandable
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)