Case Summary (G.R. No. 204264)
Factual Background
- December 16, 2004: Ang assigns all rights over EIDC to Figuera for P150,000.00.
- Contract provision: Ang shall pay electricity, telephone, office rentals, and employee salaries through December 2004.
- Figuera, without Ang’s consent, pays P107,903.21 in utility bills.
- January 17, 2005: Figuera tenders P42,096.79 (P150,000.00 minus P107,903.21) to Ang; Ang refuses.
- Figuera files for specific performance and consigns P42,096.79 with the RTC.
- May 19, 2005: Figuera assigns her rights and obligations under the complaint to Enhance Visa Services, Inc.
Trial Court Ruling (RTC)
- Held that the Deed clearly obligated Ang to pay the utility bills.
- Figuera’s unilateral payment lacked Ang’s consent and could not be deducted.
- Valid tender and consignation require full P150,000.00; P42,096.79 was insufficient.
- Judgment: Dismissal of Figuera’s complaint.
Appellate Court Ruling (CA)
- Affirmed RTC.
- No contractual basis to deduct bill payments from the consideration.
- Figuera failed to prove Ang’s consent to utilities payment.
- P42,096.79 was insufficient for valid tender or consignation.
- Declined to consider new issues raised on appeal.
Parties’ Contentions on Petition
Petitioner’s Arguments
- As assignee and new owner, Figuera was subrogated to creditors’ rights upon paying overdue bills.
- Legal subrogation and compensation extinguished Ang’s indebtedness for P107,903.21.
- P42,096.79 tender was valid; consignation must be accepted.
- Issues were properly raised before the trial court.
Respondent’s Arguments - Petition under Rule 45 limited to questions of law; subrogation and compensation are factual matters.
- Deed contains no provision for deduction of utility payments.
- Legal subrogation not applicable under New Civil Code.
- New theories not admissible on appeal.
Issue
Whether Figuera’s tender of P42,096.79 and its consignation were valid, considering legal subrogation and compensation under the New Civil Code.
Applicable Law
- 1987 Philippine Constitution (post-1990 decision)
- New Civil Code
• Art. 1256 (consignation)
• Art. 1278–1279 (legal compensation)
• Art. 1291–1303 (legal subrogation) - Rules of Court, Rule 45 (petition for review on certiorari)
Supreme Court Ruling
- Questions of subrogation and compensation are questions of law since facts are undisputed.
- Exception to waiver rule: Points of law necessary for just resolution may be considered even if first raised on appeal.
- Legal subrogation occurred under Article 1302(3): a person interested in performance of an obligation may pay, without debtor’s knowledge, and acquire the creditor’s rights.
- Legal compensation under Article 1278 ensued automatically between mutual debts (P150,000.00 owed by Figuera; P107,903.21 owed
Case Syllabus (G.R. No. 204264)
Procedural Posture
- Petition for review on certiorari under Rule 45 filed by petitioner Jennefer Figuera assails:
• The June 29, 2012 decision of the Court of Appeals (CA) of Cebu City in CA-G.R. CV. No. 02480.
• The CA’s September 28, 2012 resolution denying reconsideration. - RTC, Branch 9 of Cebu City, originally ruled for respondent Maria Remedios Ang in its December 28, 2007 decision.
- Figuera substituted by Enhance Visa Services, Inc. (EVSI) through a Deed of Assignment Coupled with Interest, motion granted June 14, 2005.
- Supreme Court granted the petition, reversed CA ruling, and remanded by final decision dated June 29, 2016.
Facts of the Case
- Maria Remedios Ang owned the single proprietorship business “Enhance Immigration and Documentation Consultants” (EIDC).
- December 16, 2004: Ang executed a Deed of Assignment of Business Rights transferring all business rights over EIDC to Figuera for ₱150,000.
- Deed expressly required Ang to pay electricity, telephone, office rentals, and employee salaries up to December 2004.
- Figuera, without Ang’s prior consent, paid utility bills and salaries totalling ₱107,903.21 for December 2004.
- January 17, 2005: Figuera tendered ₱42,096.79 to Ang (₱150,000 minus ₱107,903.21) as balance consideration; Ang refused payment.
- Figuera formally demanded acceptance within five days; Ang still refused.
- Figuera filed for specific performance and consignation of ₱42,096.79 in RTC.
RTC Proceedings and Ruling
- RTC found that Deed’s unambiguous language obliged Ang to pay December 2004 utilities.
- Held that Figuera’s payment without consent did not authorize deduction from the ₱150,000 consideration.
- Ruled that valid tender must cover full amount due; ₱42,096.79 was insufficient.
- Dismissed specific performance complaint and consignation; Ang need not accept partial payment.
CA Proceedings and Ruling
- CA affirmed RTC decision in its June 29, 2012 decision.
- Determined no provision in Deed allowed Figuera to pay utilities and deduct from price.
- Figuera failed to prove Ang’s consent to utility payments.
- ₱42,096.79 tender was insufficient for consignation; not a valid tender of full consideration.
- Excluded issues not raised below.
- Denied Figuera’s m