Title
Figuera vs. Ang
Case
G.R. No. 204264
Decision Date
Jun 29, 2016
Maria Ang sold her business to Jennefer Figuera for P150,000. Figuera paid utility bills without Ang's consent, reducing payment to P42,096.79. SC ruled legal subrogation and compensation applied, validating Figuera's tender and consignation.

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

  1. As assignee and new owner, Figuera was subrogated to creditors’ rights upon paying overdue bills.
  2. Legal subrogation and compensation extinguished Ang’s indebtedness for P107,903.21.
  3. P42,096.79 tender was valid; consignation must be accepted.
  4. Issues were properly raised before the trial court.
    Respondent’s Arguments
  5. Petition under Rule 45 limited to questions of law; subrogation and compensation are factual matters.
  6. Deed contains no provision for deduction of utility payments.
  7. Legal subrogation not applicable under New Civil Code.
  8. 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

  1. Questions of subrogation and compensation are questions of law since facts are undisputed.
  2. Exception to waiver rule: Points of law necessary for just resolution may be considered even if first raised on appeal.
  3. 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.
  4. Legal compensation under Article 1278 ensued automatically between mutual debts (P150,000.00 owed by Figuera; P107,903.21 owed

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