Title
Southern Motors, Inc. vs. Barbosa
Case
G.R. No. L-9306
Decision Date
May 25, 1956
The court held that a mortgage may be foreclosed without first exhausting the properties of the principal debtor, as permitted by the Civil Code of the Philippines.
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Case Digest (G.R. No. L-9306)

Facts:

  • The case Southern Motors, Inc. vs. Eliseo Barbosa, G.R. No. L-9306, was decided on May 25, 1956, by the Supreme Court of the Philippines.
  • Southern Motors, Inc. filed a foreclosure action against Eliseo Barbosa in the Court of First Instance of Iloilo.
  • The dispute stemmed from a real estate mortgage executed by Barbosa to secure a debt of P2,889.53 owed by Alfredo Brillantes to Southern Motors, Inc.
  • Brillantes defaulted on his obligation, prompting Southern Motors to seek foreclosure.
  • Barbosa admitted the allegations but raised a defense, claiming Southern Motors had not exhausted remedies against the solvent Brillantes, who owned properties in Iloilo.
  • The trial court, initially presided over by Judge Roman Ibanez, denied the motion for summary judgment as premature.
  • The case was later transferred to Judge Querube C. Makalintal, who ordered Barbosa to pay the amount due, including interest and attorney's fees, and allowed for the sale of the mortgaged property if payment was not made.
  • Barbosa appealed, citing errors in the trial court's proceedings, including lack of notice for the motion for reconsideration and deprivation of property rights without due process.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court ruled that the trial court did not err in hearing the motion for reconsideration, as the defendant's counsel had been properly notified.
  • The Court found that there were issues submitted for determination, validating the trial court's judgment on the pleadings.
  • The Court ...(Unlock)

Ratio:

  • The Supreme Court emphasized that the defendant's claim of lack of notice was unfounded, as the record indicated proper service to his counsel.
  • The Court clarified that the trial court had sufficient grounds to render a judgment on the pleadings, given Barbosa's admission of the allegations and his special defense regarding the ex...continue reading

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