Case Summary (G.R. No. 126297)
Antecedents
Trans Industrial, based in Mandaue City, Cebu, obtained several loans from Metrobank, which were secured by an assignment of property, TCT No. 38486. Due to insufficient collateral, the petitioners executed multiple Continuing Surety Agreements to cover loans totaling approximately P16 million and $626,000. After defaulting on these loans, Trans Industrial sought restructuring, resulting in a Debt Settlement Agreement in September 2000, which included a Deed of Dacion En Pago over another property (TCT No. 45993) in exchange for partial settlement.
Ruling of the RTC
On November 27, 2009, the Regional Trial Court (RTC) ruled in favor of the plaintiff, Meridian, and ordered the petitioners to pay P37,985,078.49, inclusive of interest and penalties, citing non-payment despite prior agreements and demands.
Ruling of the CA
The Court of Appeals (CA) upheld the RTC decision on October 30, 2015, finding the petitioners had failed to sufficiently contest the executed documents—particularly the Secretary's Certificate and the Debt Settlement Agreement. The court emphasized that the petitioners’ failure to deny these documents under oath constituted an admission of their genuineness and due execution. Furthermore, the CA found no evidence of fraud regarding the Debt Settlement Agreement.
Petitioners' Claims
In their petition to the Supreme Court, the petitioners raised several grounds, including the assertion that the resolutions authorizing loans beyond specified limits were void due to a lack of quorum, that agreements converting dollar loans to pesos were invalid, and claims of overpayment arising from the properties' perceived value. The petitioners maintained that they did not authorized borrowing in foreign currency, and argued that their loan obligations were fulfilled through the Dacion en Pago.
Respondent's Position
Respondent Meridian contended that the petitioners had already admitted the validity of the underlying documents by failing to specifically deny them under oath, and that the agreements concerning the loans and their amounts were valid and binding. Meridian rebutted the claims of overpayment by pointing out the explicit terms of the Debt Settlement Agreement and related documents.
Supreme Court's Ruling
The Supreme Court found the petition to be without merit and reiterated that the issues raised predominantly involved questions of fact rather than of law. The court emphasized that the determination of f
...continue readingCase Syllabus (G.R. No. 126297)
Overview of the Case
- This case involves a Petition for Review under Rule 45 of the Rules of Court, challenging the Decision dated October 30, 2015, and Resolution dated August 17, 2016, of the Court of Appeals (CA) which upheld the Regional Trial Court's (RTC) Decision dated November 27, 2009.
- Petitioners include Trans Industrial Utilities Inc., Spouses Rodolfo and Victoria Tiu, and Juanita T. Tiu, while the respondent is Metropolitan Bank & Trust Company, later substituted by Meridian Corporation.
Background of the Parties
- Trans Industrial is a domestic corporation based in Mandaue City, Cebu.
- Metropolitan Bank & Trust Company, a universal banking institution, is headquartered in Makati City.
- The loans secured by Trans Industrial were executed by its president, Rodolfo T. Tiu, with the property of Mandaue Realty and Resources Corporation as collateral.
Loan Agreements and Security
- Trans Industrial obtained multiple loans from Metrobank, secured by the assignment of rights over a parcel of land under TCT No. 38486.
- Due to insufficient security, a Continuing Surety Agreement was executed to cover loans amounting to P16,343,800.00 and US$626,000.00.
- Following default on these loans, a Debt Settlement Agreement was executed on September 25, 2000, which included a Deed of Dacion En Pago over another parcel of land.