(G.R. No. L-9306. May 25, 1956.) SOUTHERN MOTORS, INC., Plaintiff-Appellee, vs. ELISEO BARBOSA, Defendant-Appellant. - May 1956 - Philipppine Supreme Court Decisions
(G.R. No. L-9306. May 25, 1956.) SOUTHERN MOTORS, INC., Plaintiff-Appellee, vs. ELISEO BARBOSA, Defendant-Appellant. - May 1956 - Philipppine Supreme Court Decisions
Philippine Supreme Court Jurisprudence > Year 1956 > May 1956
Decisions > [G.R. No. L-9306. May 25, 1956.] SOUTHERN MOTORS,
ChanRobles On-Line Bar INC., Plaintiff-Appellee, vs. ELISEO BARBOSA, Defendant-Appellant.:
Review
EN BANC
[G.R. No. L-9306. May 25, 1956.]
SOUTHERN MOTORS, INC., Plaintiff-Appellee, vs. ELISEO BARBOSA,
Defendant-Appellant.
DECISION
CONCEPCION, J.:
This is an appeal from a decision of the Court of First Instance of Iloilo: chanroblesvirtuallawlibrary
“(a) Ordering the Defendant Eliseo Barbosa to pay to the Court, for the benefit of
the Plaintiff within a period of ninety (90) days from receipt by the Defendant
hereof, the sum of P2,889.53, with interest at the rate of 12% per annum computed
on the basis of the amounts of the installments mentioned in the mortgage and of the
dates they respectively fell due, until fully paid; the sum of P200 by way of chan roblesvirtualawlibrary
attorney’s fees, plus costs; chanand (b) Upon failure of the Defendant to pay as
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aforesaid, ordering the land described in the complaint and subject of the mortgage
to be sold at public auction in accordance with law in order to realize the amount of
the judgment debt and costs.”
Although originally forwarded to the Court of Appeals, the same has certified the
record to this Court in view of the fact that the issues raised in the appeal involve
merely questions of law.
Plaintiff, Southern Motors, Inc., brought this action against Eliseo Barbosa, to
foreclose a real estate mortgage, constituted by the latter in favor of the former, as
security for the payment of the sum of P2,889.53 due to said Plaintiff from one
Alfredo Brillantes, who had failed to settle his obligation in accordance with the
terms and conditions of the corresponding deed of mortgage. Defendant Eliseo
Barbosa filed an answer admitting the allegations of the complaint and alleging, by
way of “special and affirmative” defense: chanroblesvirtuallawlibrary
“That the Defendant herein has executed the deed of mortgage Annex A for the only
purpose of guaranteeing — as surety and/or guarantor — the payment of the above
mentioned debt of Mr. Alfredo Brillantes in favor of the Plaintiff.
“That the Plaintiff until now has no right action against the herein Defendant on the
ground that said Plaintiff, without motive whatsoever, did not intent or intent to
exhaust all recourses to collect from the true debtor Mr. Alfredo Brillantes the debt
contracted by the latter in favor of said Plaintiff, and did not resort nor intends to
resort all the legal remedies against the true debtor Mr. Alfredo Brillantes,
notwithstanding the fact that said Mr. Alfredo Brillantes is solvent and has many
properties within the Province of Iloilo.”
Thereupon, Plaintiff moved for summary judgment which a branch of the Court of
First Instance of Iloilo, presided over by Hon. Roman Ibañez, Judge, denied upon the
ground that it “is premature”. Plaintiff moved for a reconsideration of the order to
this effect. Soon later, he filed, also, another motion praying that the case be
transferred to another branch of said court, because that of Judge Ibañez would be
busy trying cadastral cases, and had adopted the “policy of refraining from
entertaining any other civil cases and all incidents related thereto, until after said
cadastral cases shall have been finally disposed of.” With the express authority of
Judge Ibañez, the case was referred to the branch of said court, presided over by
Hon. Querube C. Makalintal, Judge, for action, upon said motion for reconsideration.
Thereafter, Judge Makalintal rendered the aforementioned decision, from which the
Defendant has appealed. He maintains, in his brief, that: chanroblesvirtuallawlibrary
Open
“1. The trial court erred in hearing Plaintiff-Appellee’s ‘motion for reconsideration’
dated June 9, 1951, notwithstanding the fact that Defendant-Appellant was not
served with a copy thereof nor served with notice of the hearing thereof.
2. “The trial court erred in rendering a ‘judgment on the pleadings’ in Appellee’s
favor when no issue was at all submitted to it for resolution, to the prejudice of the
substantial rights of Appellant.
3. “The court a quo erred in depriving Defendant-Appellant of his property rights
without due process of law.”
The first assignment of error is based upon an erroneous predicate, for, contrary to
Defendant’s assertion, his counsel in the lower court, Atty. Manuel F. Zamora,
through an employee of his office, by the name of Agripino Aguilar, was actually
served on June 9, 1951, with copy of Plaintiff’s motion for reconsideration, with
ASIA notice to the effect that said motion would be submitted for the consideration and
approval of the lower court, on Saturday, June 16, 1951, at 8: 00 a.m., or soon chanroblesvirtuallawlibrary
The second assignment of error is, likewise, untenable. It is not true that there was
DAILY FLIGHTS AND no issue submitted for determination by the lower court when it rendered the
GREAT FARES. WHY decision appealed from.
WAIT?
It will be recalled that each one of the allegations made in Plaintiff’s complaint were
expressly admitted in Defendant’s answer, in which he merely alleged, as “special
and affirmative” defense, that Plaintiff is not entitled to foreclose the mortgage
constituted in its favor by the Defendant, because the property of Alfredo Brillantes,
the principal debtors, had not been exhausted as yet, and were not sought to be
exhausted, for the satisfaction of Plaintiff’s credit. Thus, there was no question of
fact left for determination. The only issue set up by the pleadings was the sufficiency
of said affirmative defense. And such was the only point discussed by the Defendant
in his opposition to Plaintiff’s motion for a summary judgment, referring, evidently,
to a judgment on the pleadings.
Plaintiff’s motion for reconsideration of the order of Judge Roman Ibañez refusing to
render said judgment, upon the ground that it was premature, revived said issue of
sufficiency of the aforementioned affirmative defense, apart from calling for a
reexamination of the question posed by said order of Judge Ibañez, namely, whether
it was proper, under the circumstances, to render a judgment on the pleadings. In
other words, said motion for reconsideration had the effect of placing before then
Judge Makalintal, for resolution, the following issues, to wit: (1) whether a chanroblesvirtuallawlibrary
whether the mortgage in question could be foreclosed although Plaintiff had not
exhausted, and did not intend to exhaust, the properties of his principal debtor,
Alfredo Brillantes.
The third assignment of error is predicated upon the alleged lack of notice of the
hearing of Plaintiff’s motion for reconsideration. As stated in our discussion of the
first assignment of error, this pretense is refuted by the record. Moreover, it is
obvious that Defendant’s affirmative defense is devoid of merit for: chanroblesvirtuallawlibrary
“That if said Mr. Alfredo Brillantes or herein mortgagor, his heirs, executors,
administrators and assigns shall well and truly perform the full obligations above-
stated according to the terms thereof, then this mortgage shall be null and void,
otherwise it shall remain in full force and effect, in which event herein mortgagor
authorizes and empowers herein mortgagee-company to take any of the following
actions to enforce said payment;.
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Flat Fee Divorce of the real property herein mortgaged to any deficiency or difference between the
purchase price of said chattel at public auction and the amount of P2,889.53,
together with its interest hereby secured; or
chan roblesvirtualawlibrary
“(b) Simply foreclose this mortgage judicially in accordance with the provisions of
section 2, Rule 70, Rules of Court, or extra- judicially under the provisions of Act
No. 3135 and Act No. 4118, to satisfy the full amount of P2,889.53, together with its
interest of 12 per cent per annum.”
2. The right of guarantors, under Article 2058 of the Civil Code of the Philippines,
Free 15 minute phone to demand exhaustion of the property of the principal debtor, exists only when a
pledge or a mortgage has not been given as special security for the payment of the
consultation to see if youprincipal obligation. Guarantees, without any such pledge or mortgage, are governed
by Title XV of said Code, whereas pledges and mortgages fall under Title XVI of the
and your spouse qualify.same Code, in which the following provisions, among others, are found: chanroblesvirtuallawlibrary
ART. 2087. “It is also of the essence of these contracts that when the principal
obligation becomes due, the things in which the pledge or mortgage consists may be
alienated for the payment to the creditor.”
ART. 2126. “The mortgage directly and immediately subjects the property upon
which it is imposed, whoever the possessor may be, to the fulfillment of the
obligation for whose security it was constituted.”
3. It has been held already (Saavedra vs. Price, 68 Phil., 688), that a mortgagor is
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not entitled to the exhaustion of the property of the principal debtor.
supreme court 4. Although an ordinary personal guarantor — not a mortgagor or pledgor — may
demand the aforementioned exhaustion, the creditor may, prior thereto, secure a
hearing aid cases judgment against said guarantor, who shall be entitled, however, to a deferment of
the execution of said judgment against him until after the properties of the principal
hardwood veneer debtor shall have been exhausted to satisfy the obligation involved in the case.
Wherefore, the decision appealed from is hereby affirmed, with costs against the
labor and law Defendant-Appellant. It is SO ORDERED.
Paras, C.J., Bengzon, Padilla, Montemayor, Reyes, A., Jugo, Bautista Angelo,
cebu top 10 Labrador, Reyes, J.B.L., and Endencia, JJ., concur.