Case Summary (G.R. No. 75819)
Indebtedness and Secured Payment
Fermin admits to borrowing P160,000.00, secured by three post-dated checks totaling the same amount, issued against his bank account. The checks are as follows: Check No. 870585 (P50,000.00), Check No. 908254 (P10,000.00), and Check No. 887380 (P100,000.00). Subsequently, Fermin made a partial payment of P40,000.00 with a fourth check, reducing his alleged debt to P120,000.00. Furthermore, Fermin asserts that he stored zippers valued at P181,000.00 in Mariano's warehouse, which he claims were not intended as collateral for the loan.
Dispute Over Payments and Set-Off Claims
Mariano filed a lawsuit seeking full repayment of the loan, to which Fermin responded by disputing his liability and claiming an offset against an unrelated debt owed to him by Mariano for the transfer of rights to stalls in the Yangco Market. The courts examined the legitimacy of these claims, with Fermin's assertion being met with skepticism by Mariano, who later revised his claims about the details of the loan.
Judicial Findings and Factual Determinations
The trial court and the Court of Appeals issued conflicting findings regarding the nature and amount of the debt. The Supreme Court had to clarify the situation based on the existing records and the applicable law. It found that the total of the post-dated checks remained at P160,000.00, matching Mariano's claim of Fermin's outstanding loan. The lack of evidence regarding the funding of the checks and the absence of any receipts for alleged partial payments further weakened Fermin's assertions.
Assessment of Zipper Storage and Set-Off Argument
Fermin's claims about the zippers evolved throughout the case, initially deeming them worthless, yet later insisting on their return as part of repaying his debt. Mariano’s denial of withholding these items was scrutinized but ultimately deemed plausible given the circumstances. The court noted that Mariano had no obligation to return the zippers to Fermin under the assumption presented.
Legal Framework and Compensation Claims
Fermin also attempted to invoke compensation as a means to offset his debt by citi
...continue readingCase Syllabus (G.R. No. 75819)
Case Overview
- The case revolves around the dispute concerning the amount of indebtedness owed by Fermin Ong (the petitioner) to his cousin Mariano Ong (the private respondent).
- The trial court supported Fermin's claim that the debt was P120,000.00, whereas the Court of Appeals upheld Mariano's assertion that the debt amounted to P160,000.00.
Background of the Case
- Fermin borrowed a total of P160,000.00 from Mariano, secured by three post-dated checks totaling the same amount.
- Check No. 870585: P50,000.00 (dated September 6, 1978)
- Check No. 908254: P10,000.00 (dated October 8, 1978)
- Check No. 887380: P100,000.00 (dated October 15, 1978)
- A fourth check for P40,000.00 was issued on January 23, 1979, in partial settlement of the loan, reducing the outstanding amount to P120,000.00.
- The checks were drawn against accounts held by Fermin at two different banking institutions.
Dispute and Claims
- Fermin claimed to have stored zippers worth P181,000.00 in Mariano's warehouse, asserting that these were not intended as collateral for the loan but merely as temporary storage due to lack of space.
- Mariano allegedly denied Fermin access to the zippers, citing non-payment of the loan as the reason for withho