Title
De Guzman, Jr. vs. Court of Appeals
Case
G.R. No. 92029-30
Decision Date
Dec 20, 1990
Friends dispute settled checks; petitioner claims obligation extinguished, respondent demands payment. Court finds cause of action valid, no prescription, remands for trial.

Case Summary (G.R. No. 92029-30)

Complaint Details and Allegations

On September 15, 1988, the petitioner filed a complaint for damages alleging a series of events that transpired over a friendship with the defendant, which involved the issuance of several checks in exchange for cash totaling P280,900.00. The petitioner claimed that these checks were either fully paid, settled, extinguished, or condoned by agreement. Subsequently, on August 30, 1988, a demand letter was sent by the respondent's lawyer, asserting a total amount due of P568,541.00 for the purported value of the dishonored checks, legal interests, and attorney’s fees. The petitioner contended that this claim was unfounded because the amounts related to the checks had already been settled.

Court Proceedings and Rulings

Following the filing of the complaint, the respondent filed a motion to dismiss it for lack of cause of action and prescription. The trial court dismissed the complaint on November 24, 1988, citing failure to state a cause of action. The petitioner subsequently filed a motion for reconsideration, which was denied on March 17, 1989. The petitioner then escalated the matter to the Court of Appeals through a petition for certiorari and mandamus, claiming that the trial court had gravely abused its discretion.

Findings on Cause of Action

The Supreme Court found merit in the petitioner's argument, noting that the allegations within the complaint indeed stated a sufficient cause of action. It reiterated that a cause of action is composed of a primary right of the plaintiff and a corresponding duty of the defendant, along with a wrongful act or omission by the defendant that violates this right. The court established that the facts alleged in the complaint showed that the petitioner had a primary right since he had settled his obligations, and the demand for payment based on checks that had already been settled constituted a violation of this right.

Prescription of the Cause of Action

The Court also addressed the issue of prescription, clarifying that the cause of action did not prescribe. It stated that the cause of action did not arise until the wrongful act was committed, which in this case occurred on August 30, 1988, when the demand letter was

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