Title
Tibajia, Jr. vs. Court of Appeals
Case
G.R. No. 100290
Decision Date
Jun 4, 1993
A debt collection case where payment via cashier's check was refused, as checks are not legal tender; Supreme Court upheld creditor's right to reject non-cash payment.
A

Case Digest (G.R. No. 168118)

Facts:

  • Parties and Case Origin
    • Petitioners: Spouses Norberto Tibajia, Jr. and Carmen Tibajia.
    • Private respondent: Eden Tan. Civil Case No. 54863 for collection of sum of money filed by Tan in RTC, Branch 151, Pasig.
  • Attachment and Trial Court Proceedings
    • Writ of attachment issued 17 August 1987; Deputy Sheriff garnished P442,750 deposit by petitioners in RTC Kalookan on 17 September 1987.
    • RTC decision of 10 March 1988 awarded Eden Tan in excess of P300,000.
  • Appellate Proceedings
    • On appeal, the Court of Appeals reduced moral and exemplary damages; decision became final.
    • Eden Tan moved for execution; garnished funds on deposit in RTC Pasig cashier were levied upon.
  • Tender of Payment and Subsequent Motions
    • On 14 December 1990, petitioners tendered payment via:
      • BPI Cashier’s Check No. 014021 for P262,750.00
      • Cash amounting to P135,733.70
—Total: P398,483.70
  • Eden Tan refused to accept the cashier’s check, insisting instead on withdrawal of garnished funds.
  • Petitioners filed a motion to lift the writ of execution on 15 January 1991, asserting full payment. RTC denied it on 29 January 1991 (reconsideration denied 8 February 1991) on grounds that cashier’s checks are not legal tender and payment by a third party is invalid.
  • Petition in the Court of Appeals
    • Petitioners filed for certiorari, prohibition, and injunction in CA (CA-G.R. SP No. 24164).
    • CA dismissed the petition on 24 April 1991; motion for reconsideration denied on 27 May 1991.

Issues:

  • Whether the BPI Cashier’s Check No. 014021 in the amount of P262,750.00 constitutes “legal tender” under Philippine law.
  • Whether Eden Tan may validly refuse a tender of payment made partly by cashier’s check and partly in cash for satisfaction of the monetary judgment.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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