Case Digest (G.R. No. 33320)
Facts:
On April 9, 1919, Inocente Rabe obtained a P1,000 loan from Salvador Rivero, payable within the year. The loan was secured by a mortgage covering four parcels of land owned by Rabe in Ilocos Sur, with the lands being registered pursuant to the Mortgage Law in the province’s register of deeds. The mortgage deed provided that the instrument would become null and void if Rabe, within one year from the date of the deed, paid the P1,000, together with interest at the rate fixed by Act No. 2655, payable each semester in advance. After Rivero’s demand and Rabe’s subsequent offer to pay 10% interest, the plaintiff rejected the offer and demanded 12% interest. After litigation, the case reached the justice of the peace of Vigan acting as Judge of First Instance, which ordered the defendant administrator to pay P1,000 less P300 already paid, with 10% interest per annum from April 9, 1919, as well as P150 attorney’s fees and the costs, and it authorized the sale of the mortgaged propertiesCase Digest (G.R. No. 33320)
Facts:
On April 9, 1919, Inocente Rabe obtained a P1,000 loan from Salvador Rivero, payable within one year and secured by four parcels of registered land mortgaged under the Mortgage Law in Ilocos Sur. The mortgage deed provided that it would become null and void if Rabe (or his representative/heirs) paid the P1,000, “together with interest at the rate fixed by Act No. 2655,” payable each semester in advance; otherwise, it would remain effective. Rabe offered to pay 10% interest, which Rivero rejected and demanded 12%.The justice of the peace of Vigan, acting as Judge of First Instance, ordered the estate administrator to pay 10% interest, plus P150 attorney’s fees and costs, with payment or deposit within ninety days or else a sale of the mortgaged property. Rabe appealed, assigning errors on the interest rate, attorney’s fees, and denial of a motion for new trial.
Issues:
- Whether the mortgage deed required Rabe to pay 6% annual interest or 10% interest.
- Whether the trial court erred in awarding P150 as attorney’s fees and costs.
- Whether the trial court erred in denying the motion for a new trial.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)