Title
Supreme Court
Spouses Agner vs. BPI Family Savings Bank, Inc.
Case
G.R. No. 182963
Decision Date
Jun 3, 2013
Spouses Agner defaulted on a car loan, leading to a legal dispute over payment obligations, interest rates, and remedies under Article 1484, with the Supreme Court affirming liability but reducing the interest rate.

Case Digest (G.R. No. 149926)
Expanded Legal Reasoning Model

Facts:

  • Execution of Promissory Note with Chattel Mortgage
    • On February 15, 2001, petitioners spouses Deo and Maricon Agner executed a Promissory Note with Chattel Mortgage in favor of Citimotors, Inc. for ₱834,768.00.
    • Terms included monthly installments of ₱17,391.00 due every 15th, secured by a 2001 Mitsubishi Adventure Super Sport, and a 6% monthly interest on late payments.
  • Assignment of the Note
    • On the same day, Citimotors, Inc. assigned all rights, title, and interest in the note to ABN AMRO Savings Bank, Inc.
    • ABN AMRO, on May 31, 2002, further assigned the note to BPI Family Savings Bank, Inc. (respondent).
  • Default and Demand
    • Petitioners failed to pay four successive installments from May 15 to August 15, 2002.
    • Respondent sent a demand letter dated August 29, 2002, declaring the entire obligation due (₱576,664.04) and demanding immediate payment or surrender of the vehicle.
  • Replevin Action and Trial Court Decision
    • On October 4, 2002, respondent filed an action for replevin and damages; a writ of replevin was issued but the vehicle was not seized.
    • On August 11, 2005, the Manila RTC Branch 33 ordered petitioners to pay ₱576,664.04 plus 72% per annum interest from August 20, 2002, and costs of suit.
  • Court of Appeals
    • Petitioners appealed; the CA, in its April 30, 2007 Decision, affirmed the RTC decision and denied reconsideration on May 19, 2008.
    • Petitioners thereafter filed a petition for review on certiorari before the Supreme Court.

Issues:

  • Cause of Action and Deed of Assignment
    • Whether respondent has a valid cause of action given that the Deed of Assignment did not specifically mention ABN AMRO’s account receivable from petitioners.
  • Default and Proof of Demand
    • Whether petitioners can be deemed to have defaulted in payment without competent proof that they received the demand letter.
  • Concurrent Remedies and Article 1484
    • Whether respondent’s resort to both replevin and collection of sum of money violates Article 1484 of the Civil Code and the ruling in Elisco Tool Manufacturing Corporation v. Court of Appeals.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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