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. The plaintiff, Southern Motors, Inc., initiated a foreclosure action against the defendant, Eliseo Barbosa, in the Court of First Instance of Iloilo. The dispute arose 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 failed to fulfill his obligation, prompting the plaintiff to seek foreclosure on the mortgage. Barbosa admitted the allegations in the complaint but raised a special and affirmative defense, arguing that Southern Motors had not exhausted all legal remedies against Brillantes, who was solvent and owned properties in Iloilo. The trial court, initially presided over by Judge Roman Ibanez, denied the plaintiff's motion for summary judgment, deeming it premature. Subsequently, the case was transferred to Judge Querube C. Makalintal, who r...

Facts:

1. Parties Involved:

   • Plaintiff and Appellee: Southern Motors, Inc.
   • Defendant and Appellant: Eliseo Barbosa

2. Nature of the Case:

   • The case involves the foreclosure of a real estate mortgage executed by Eliseo Barbosa in favor of Southern Motors, Inc. as security for the payment of a debt owed by Alfredo Brillantes to Southern Motors, Inc.

3. Allegations in the Complaint:

   • Southern Motors, Inc. filed a complaint to foreclose the mortgage due to the failure of Alfredo Brillantes to pay his debt of P2,889.53.

4. Defendant’s Answer:

   • Eliseo Barbosa admitted the allegations in the complaint but raised a special and affirmative defense. He claimed that he executed the mortgage only as a guarantor for Alfredo Brillantes' debt. He argued that Southern Motors, Inc. had not exhausted all legal remedies to collect from Brillantes, the principal debtor, who was allegedly solvent and had properties in Iloilo.

5. Procedural History:

   • Southern Motors, Inc. moved for a summary judgment, which was initially denied by Judge Roman Ibanez as "premature."
   • The case was later transferred to Judge Querube C. Makalintal, who granted the motion for reconsideration and rendered a decision in favor of Southern Motors, Inc., ordering Barbosa to pay the debt or face foreclosure of the mortgaged property.

6. Defendant’s Appeal:

   • Barbosa appealed the decision, raising three assignments of error:
     • Lack of notice for the hearing of the motion for reconsideration.
     • Error in rendering a judgment on the pleadings when no issue was submitted for resolution.
     • Deprivation of property rights without due process.

Issue:

• (Unlock)

Ruling:

• (Unlock)

Ratio:

1. Judgment on the Pleadings:

   • A judgment on the pleadings is proper when the defendant admits all the material allegations in the complaint and raises only legal defenses. In this case, the defendant admitted the existence of the mortgage and the debt, and his defense was purely legal.

2. Exhaustion of Principal Debtor’s Properties:

   • Under Article 2058 of the Civil Code, a guarantor may demand the exhaustion of the principal debtor’s properties only when no pledge or mortgage has been given as security. Since the defendant executed a mortgage, he was not entitled to such a demand.

3. Mortgage Foreclosure:

   • The mortgage deed explicitly provided for foreclosure in case of default. The Civil Code (Articles 2087 and 2126) also supports the immediate foreclosure of mortgaged property to satisfy the obligation.

4. Due Process:

   • The defendant was not deprived of due process as he was given proper notice and an opportunity to be heard. His affirmative defense was considered but found to be legally insufficient.

Conclusion:

The Supreme Court affirmed the decision of the trial court, holding that the mortgage could be foreclosed without first exhausting the properties of the principal debtor. The defendant’s assignments of error were dismissed, and the judgment in favor of Southern Motors, Inc. was upheld.