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.

Case Digest (G.R. No. 100290)

Facts:

Norberto Tibajia, Jr. and Carmen Tibajia v. The Honorable Court of Appeals and Eden Tan, G.R. No. 100290, June 04, 1993, Supreme Court Second Division, Padilla, J., writing for the Court.

Petitioners spouses Norberto and Carmen Tibajia were judgment debtors in Civil Case No. 54863 filed by private respondent Eden Tan for collection of money. The Regional Trial Court (RTC), Branch 151, Pasig, rendered judgment for Tan on March 10, 1988, ordering the Tibajias to pay an amount in excess of ₱300,000. On appeal the Court of Appeals reduced the award of moral and exemplary damages; the decision thereafter became final.

Prior to final execution, a writ of attachment was issued on August 17, 1987; on September 17, 1987 the deputy sheriff returned that a deposit of ₱442,750 by the Tibajias in an RTC Kalookan matter had been garnished. After finality, Tan sought execution and the garnished funds on deposit with the cashier of the RTC of Pasig were levied upon. On December 14, 1990 the Tibajias delivered to Deputy Sheriff Eduardo Bolima payment comprising a Bank of the Philippine Islands cashier’s check for ₱262,750.00 and cash ₱135,733.70 (total ₱398,483.70). Tan refused to accept the tender, insisting the garnished funds be withdrawn to satisfy the judgment.

On January 15, 1991 the Tibajias moved in the trial court to lift the writ of execution on the ground of full payment. The RTC denied the motion on January 29, 1991, finding (1) a cashier’s check is not legal tender and (2) the payment was made by a third party, and denied reconsideration on February 8, 1991. The Tibajias filed a petition for certiorari, prohibition and injunction in the Court of Appeals (CA-G.R. SP No. 24164), which dismissed the petition on April 24, 1991, holding that payment by cashier’s check is not ...(Subscriber-Only)

Issues:

  • Is the Bank of the Philippine Islands cashier’s check No. 014021 in the amount of ₱262,750.00 tendered by petitioners legal tender for the satisfaction of the judgment debt?
  • May private respondent Eden Tan validly refuse a tender of payment made partly by cashier’s check and partly in cash for the satisfaction of the monetary obligation ...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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