Professional Documents
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VILLAFUERTE
EN BANC
SYLLABUS
DECISION
TORRES , J : p
On April 30, 1908, W. W. Robinson entered suit in the Court of First Instance of
Tayabas against Marcelino Villafuerte y Raola, alleging as a rst cause of action: That
the plaintiff was engaged, in the city of Manila and at the time speci ed further on, in
the importation and sale of our and other products from abroad, with an of ce in the
city of Manila, a business which he still continued, through the agency of Castle
Brothers, Wolf & Sons, established therein; that the defendant, a resident of Lucena,
Tayabas, by an instrument duly executed on October 19, 1906, by his attorney in fact
and legal representative, Vicente Marcelo Concepcion, who was fully empowered and
authorized for the purpose, and rati ed on the same date before the notary public of
Manila, D. R. Williams, acknowledged and confessed that he owed the plaintiff the net
sum of P3,852.50; that by the said instrument duly executed the defendant bound and
pledged himself to pay to the plaintiff the said sum of P3,852.50 in four monthly
installments from that date, at the rate of P1,000 for each of the rst three installments
and P852.50 for the last one, and likewise the interest thereon at the rate of 8 per cent
per annum, to be adjusted and paid at the time of paying each of the installments xed;
that in the said instrument the defendant moreover bound himself to pay to the plaintiff
the sum of P500 for costs and expenses, in case the latter should recur to judicial
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process for the collection of the aforementioned debt; and that, as security for the
payment of the said debt, of the interest thereon and of the amount for costs and
expenses, the defendant voluntarily executed, by means of the said instrument and in
favor of the plaintiff, a special mortgage upon the properties of his absolute ownership
and control, which are:
A., p. 72, back. A rural estate, No. 433, consisting of land planted in coconut trees,
in the barrio of Dumacaa of the municipality of Lucena, and containing an area of 2
hectares, 57 ares, and 73 centares.
B., p. 73. A rural estate, No. 434, consisting of coconut land in the barrio of
Canlorang Mayao, Lucena, 2 hectare, 4 ares, and 78 centares in area.
C., p. 73. A rural estate, No 435, consisting of unirrigated land containing 1,200
coconut trees, in the same barrio of Lucena, and with and are of 7 hectares, 81 ares, and
4 centares.
D., p. 74. A rural estate, No 436, consisting of coconut land containing 700
coconut trees, in the barrio of Silangan Mayao, Lucena, and with and area of 1 hectare
and 84 centares.
E., p. 74. back. A rural estate, No 438, consisting of land planted with 300
coconut trees, in the barrio of Cotta, Lucena, and measuring 52 ares and 66 centares in
area.
F., p. 75. A rural estate, No. 439, consisting of coconut land containing 500
coconut trees, in the same barrio and pueblo, with an area of 98 ares and 66 centares.
G., p. 75, back. A rural estate, No. 440, consisting of coconut land containing 800
coconut trees, in the same barrio and pueblo, with an area of 36 ares and 5 centares.
H., p. 75, back. A rural estate, No. 441, consisting of coconut land containing 300
coconut trees, in the same barrio and pueblo, measuring 50 ares and 73 centares.
I., p. 73. A rural estate, No. 914, consisting of improved land, planted with 1,000
coconut trees situated in the barrio of Dumacaa, Lucena, of 7 hectares, 12 ares, and 60
centares in area.
J., p. 75. A rural estate, No. 915, consisting of improved land, planted with 100
coconut trees and situated in the barrio Cotta, Lucena, of 93 ares and 22 centares in
area.
K., p. 79. A rural estate, No. 916, consisting of improved land, planted with 200
coconut trees and situated in the same barrio and pueblo, of 13 ares and 4 centares in
area.
The respective bounderies of each one of the estates above enumerated were
set fourth in the said instrument of mortgage, which was duly inscribed in the property
registry of Tayabas. This deed does not appear to have been canceled, and constitutes
an encumbrance on the properties described in favor of the plaintiff. It was stated in
the instrument referred to, that the liability of the property mortgaged was distributed
in the following manner:
P800 of the debt and for the sum of P75 as costs P875.00
Total 4,352.50
The complaint further alleged, as a rst cause of action, that, notwithstanding the
repeated demands made upon the defendant, the latter had not paid his debt nor the
interest thereon, excepting the sum of P550, paid on different dates on account of the
debt and interest due, wherefore the defendant owed the plaintiff the sum of P3,302.50,
the remainder of his debt and besides P385.57 as interest due from December 6, 1906,
to the date of the lling of the complaint; that the plaintiff was then the legal owner of
the mortgage, and that he had not been paid the whole nor any part of the sum
expressed in the preceding paragraph.
As a second cause of action against the defendant, the complaint alleged, among
other things: That the defendant, by means of an instrument duly executed on
December 21, 1906, by his attorney in fact and legal representative, Vicente Marcelo
Concepcion, who was fully empowered and authorized an instrument rati ed on the
same date before the notary Daniel R. Williams and in consideration of the credit
which the plaintiff agreed to allow the said defendant up to the sum of P3,560,
executed a special voluntary mortgage of the properties of his absolute ownership and
control which are described as follows:
No. 1, p. 72. Estate No. 432, rst inscription, volume 28, general register; coconut
land containing 1,000 coconut trees, 26 hectares, 56 ares, and 87 centares in area,
situated in the barrio of Dumacaa, Lucena. A part of this land is planted with coconut
and nipa palm trees and the rest is arable.
No. 2, p. 72, back. Estate No. 433, rst inscription of the same volume; coconut
land containing 1,000 coconut trees, 2 hectares, 57 ares, and 73 centares in area,
situated in the same barrio and pueblo.
No. 3, p. 71, back. Estate No. 431, rst inscription of the same volume; coconut
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land containing 1,500 coconut trees, 16 hectares, 2 ares, and 27 centares in area,
situated in the same barrio and pueblo.
No. 4, p. 73, back. Estate No. 434, rst inscription of the same volume; coconut
land containing 1,000 coconut trees, 2 hectares, 4 ares, and 78 centares in area,
situated in the barrio of Canlorang Mayao, Lucena.
No. 5, p. 73, back. Estate No. 435, rst inscription of the same volume; coconut
land containing 1,200 coconut trees, 7 hectares, 81 ares, and 4 centares in area,
situated in the same barrio and pueblo.
No. 6, p. 74. Estate No. 436, rst inscription of the same volume; coconut land
containing 7,000 coconut trees, 1 hectare, 88 ares, and 54 centares in area, situated in
the barrio of Silangan Mayao, Lucena.
No. 7 p. 74, back. Estate No. 438, rst inscription of the volume aforesaid;
coconut land, 52 ares and 66 centares in area, containing 300 coconut trees and
situated in the barrio of Cotta, Lucena.
No. 8, p. 75. Estate No. 439, rst inscription of the same volume; coconut land,
98 ares and 66 centares in area, containing 500 coconut trees and situated in the same
barrio and pueblo.
No. 9, p. 75, back. Estate No. 440, rst inscription of the volume mentioned;
coconut land, 36 ares and 5 centares are, containing 500 coconut trees and also
located in the same barrio and pueblo.
No. 10, p. 75, back. Estate No. 441, rst inscription of the said volume; coconut
land, 50 ares and 73 centares in are, containing 300 coconut trees and located in the
same barrio and pueblo.
No. 11, p. 73. Estate No. 914, consisting of improved land planted with 1,000
coconut trees, located in the barrio of Dumacaa, Lucena, with an area of 7 hectares, 12
ares, and 60 centares.
No. 12, p. 76. Estate No. 915, volume 106 general register; an improved piece of
land, 93 ares and 22 centares in area, containing 800 coconut trees and situated in the
barrio of Cotta, Lucena.
No. 13, p. 79. Estate No. 916, volume 106 general register; an improved piece of
land, 13 ares and 4 centares in area, containing 200 coconut trees and situated in the
same barrio and pueblo.
No. 14, p. 127. Estate No. 932, volume 106 general register; an improved piece of
coconut land, 2 hectares, 79 ares, and 49 centares in area, containing 2,000 coconut
trees and located in the barrio of Dumacaa, Lucena.
The respective boundaries of each of the estates above enumerate were set
forth in the said instrument of mortgage, which was duly inscribed in the property
registry of Tayabas, and does not appear to have been cancelled, and constitutes an
encumbrance on the properties described, in favor of the plaintiff. It was stated, in the
instrument referred to, that the liability of the property mortgaged was distributed in
the following manner:
as costs P890.00
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Estate No. 2, liability P420, costs P40 460.00
Total 4,160.00
That the aforementioned mortgage was executed as security for the payment to
the plaintiff of the sum or sums which the defendant might owe him by reason of the
said credit, which was granted under the following terms and conditions:
1. That the said credit should not exceed the sum of P3,560 and was granted for
the period of six months from the 20th of November, 1906, and defendant was to make
use of it in taking our from the plaintiff's warehouse, at current prices, by means of
written duebills or orders signed by the defendant or by his attorney in fact.
2. That the said written duebills or orders should be paid within thirty days from
their date, and it was stipulated that the amount or value of each one of them should
bear an annual interest of 8 per cent from the date of their maturity, if not paid before.
3. That total amount of what the defendant might be owing, by reason of the said
credit, should be settled and entirely paid, together with the interest thereon, by the
20th of May, 1907, on which date all the orders or duebills issued by the defendant
against the said credit should be considered as matured, even though the extension
above mentioned should not have expired.
4. That it should be optional be optical on the part of the plaintiff to honor the
duebills or orders which the defendant Marcelino Villafuerte might issue against the
said credit, in the event that the latter should fail to pay the amount of his previous
duebills or orders at the time they should respectively fall due, or should fail to comply
with and observe any of the conditions and stipulations contained in the said
instrument of October 19, 1906, rati ed before notary Williams; that the defendant
should be bound to pay to the plaintiff P600, in case of litigation, and also to pay all the
expenses that might be occasioned by the execution of the said instrument of
December 21, 1906, those of its inscription in the registry, cancellation, and release, as
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well as the expenses incurred by the plaintiff on account of the instrument of October
19, 1906, referred to in the rst cause of action, together with those of its inscription in
the registry; provided, moreover, that the aforementioned instrument of December 21,
1906, should be retroactive in its effect from the 20th of November of the same year,
and that the our which the said defendant, through his attorney in fact, Vicente
Marcelo Concepcion, had withdrawn from the plaintiff's warehouses since the 20th of
November, 1906, should be include in the credit opened; that the estates described
under the Nos. 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13, bore a rst mortgage in favor of the
plaintiff executed as security for the obligation, the ful llment of which is demanded in
the rst cause of action; that, by clause 14 of the said instrument of December 21,
1906, it was stipulated that in case W. W. Robinson, the plaintiff, should have to institute
foreclosure proceedings against the property above described, either by reason of the
mortgage hereby placed on the same, or of the obligation affecting the said property, in
his favor, by virtue of the said instrument of October 19 of the present year, Robinson
should be entitled to take charge of the management of all or any of the said realities
until they should be sold, and to collect their revenues, rentals, fruits, and products for
the purpose of applying the same to the payment of the judgment; that, by clause 15 of
the said instrument of December 21, 1906, it was also stipulated that it was expressly
covenanted that, in case Robinson should have to proceed judicial against the property
therein mentioned in order to collect any amount to the payment of which they were
subject, all the orders or duebills issued on account of the credit granted in the said
instrument should be considered as matured and payable, and Robinson should be
entitled forthwith to demand the payment of any balance found to be due him by
Marcelino Villafuerte y Raola, with the privilege of levying upon all or any of the realities
comprised with the mortgage mentioned in the said instrument; that the amount
credited for the expenses referred to in No. 7 of the fth paragraph of this cause of
action reached P174.95; that the defendant, availing himself of the credit granted in the
aforementioned instrument of December 21, 1906, took and withdrew from the
plaintiff's warehouses, on different dates between the 20th of November and the 19th
of December, 1906, inclusive, various quantities of our, the total value of which
amounted to P5,588.15; that the defendant had not paid any part of this amount,
except the sum of P375.00, and was owing a balance of P5,213.15; that at the time of
the complaint the said defendant owed the plaintiff the sums of P174.95 and
P5,213.15, in addition to P503.79 as interest due up to the date of the complaint; that
the plaintiff was then the legal owner of the mortgage above referred to, and that none
of the sums mentioned nor any part thereof had been paid to him: wherefore the
plaintiff asked that judgment be rendered in his favor against the defendant, for the
following amounts: (1) For the sum of P3,302.50, the principal demanded in the rst
course of action, and interest thereon at 8 per cent per annum from date until its
payment; (2) for the sum of P385.57, as interest due on the principal mentioned in the
preceding paragraph and remaining unpaid, and, in addition, the interest on this sum at
the rate of 6 per cent per annum from the date of the complaint until paid; (3) for the
sum of P5,213.15, the amount of the debt claimed in the second cause of action,
together with the interest thereon at the rate of 8 per cent per annum from date until it's
payment; (4) for the sum of P503.79, the interest due on the principal mentioned in the
preceding paragraph, with interest thereon at 6 per cent per annum from date until
payment; (5) for the sum of P174.95, claimed in paragraph 9 of the second cause of
action, with interest thereon at 6 per cent per annum from the date of the complaint
until payment; and, (6) for the sum of 1,000 for costs and attorney's fees.