Title
Velasco vs. Masa
Case
G.R. No. L-3717
Decision Date
Mar 5, 1908
Velasco claimed Masa coerced return of loan document; Masa denied, asserting voluntary return. Court ruled debt waived due to lack of coercion proof, affirming voluntary renunciation under Civil Code.

Case Summary (G.R. No. L-3717)

Allegations and Initial Proceedings

On December 2, 1902, Felix Velasco filed a complaint against Martin Masa seeking payment of the loan plus interest. Velasco claims that Masa coerced his wife into returning the loan document while he was imprisoned and that the document indicated a loan of 2,804 pesos, with an interest rate of 12% per annum. The defendant, Masa, denied the allegations, asserting that the document was voluntarily returned and that it actually pertained to a principal amount of only 1,000 pesos with a higher interest rate of 20% per annum.

Responses and Court Filings

Masa’s response also noted that he was acquitted of robbery charges concerning the loan document because it was proven that it was delivered out of gratitude, not through coercion. He requested the dismissal of the complaint. After the defendant provided a demurrer, which was initially overruled, the evidence was presented leading to a judgment on November 4, 1905, that dismissed the complaint, which Velasco appealed.

Evidence Presented

The court needed to determine whether the document was returned to Masa voluntarily and whether Velasco's claims of coercion were substantiated. The court concluded that after the insurrection and subsequently, Velasco's wife returned the document voluntarily, possibly as an act of gratitude towards Masa. This conclusion was supported by the evidence presented during the proceedings.

Legal Considerations of Evidence

The court highlighted the principles under Section 273 of the Code of Civil Procedure concerning how to evaluate evidence. It noted that the lower court had properly adhered to these principles, allowing it to conclude that Masa acted in good faith and that the document's return was indeed voluntary.

Implications of Document Return

The case also examined the legal implications of the return of the loan document under Articles 1187, 1188, and 1189 of the Civil Code. The court indicated that the voluntary return of the debt instrument implies a renunciation of the creditor’s right to collect the debt. It was noted that Velasco failed to provide evidence disproving the presumption of voluntary delivery.

Conclusion on Debt Renunciation

After establishing that the document was returned voluntarily without coercion, the court found that this act c

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