Case Summary (G.R. No. 127759-60)
Case Background and Court Filings
On July 22, 1949, Apolinario Cruz filed a complaint against Fernando F. Yapcinco for the collection of P6,000, asserting that the amount was due along with interest and an additional ten percent as liquidated damages. In the event of non-payment, Cruz sought foreclosure of the mortgage secured by the property. Crucially, Cruz acted based on an assignment from Jose C. Marcelo, the original mortgagee. In response, Yapcinco sought a judgment that included a release of the mortgage upon payment in accordance with legal standards embodied in the Ballantyne scale of values.
Third-Party Complaint and Estate Administration
On September 21, 1949, Yapcinco filed a third-party complaint against Jose C. Marcelo, requesting not only a judgment favoring Yapcinco, but also aimed at discharging his obligation contingent on payment of P200 and the transfer of the title of the property back to him. Following Yapcinco's death, Patrocinio Kelly was substituted as the administratrix of his estate.
Court Dismissal
On January 9, 1951, the Court of First Instance of Tarlac dismissed the case on its own initiative, citing the debt moratorium established under Executive Order No. 25, as amended by Executive Order No. 32. This decision limited the enforcement of obligations for debtors during a specified period, intending to protect them in financial distress.
Appeal and Legal Considerations
The dismissal was contested by Cruz on appeal. The court recognized that the debt moratorium is a statutory right that can be waived and does not necessarily impact public interests or the rights of third parties. The court found a waiver in the current situation due to the defendant's inaction regarding the moratorium defense, and his express requests in both the original answer and third-party complaint asserting his willingness t
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Case Overview
- The case involves Apolinario Cruz as the plaintiff and Patrocinio Kelly, the administratrix of Fernando F. Yapcinco's estate, as the defendant, along with Jose C. Marcelo as a third-party defendant.
- The initial complaint was filed on July 22, 1949, in the Court of First Instance of Tarlac for the collection of P6,000 plus interest and liquidated damages, with a request for foreclosure of the mortgage due to non-payment.
- The plaintiff claims to have the right to sue by virtue of an assignment from the original mortgagee, Jose C. Marcelo.
Procedural History
- The defendant, Fernando F. Yapcinco, filed an answer requesting the court to order the plaintiff to release the mortgage upon payment of the mortgage's consideration according to the Ballantyne scale of values.
- On September 21, 1949, Yapcinco filed a third-party complaint against Jose C. Marcelo, seeking a judgment for the discharge of his obligation and the return of the transfer certificate of title upon pay