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Cases in Oblicon Part I

Cases in Oblicon Part I

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Published by Irene Ramilo
Case Digests in Oblicon :)
Case Digests in Oblicon :)

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Published by: Irene Ramilo on Feb 08, 2012
Copyright:Attribution Non-commercial


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Eastern Shipping vs. CAArt. 1175 & 1176, Legal InterestIssues
Whether the payment of legal interest on an award for loss or damage is to be computed fromthe time of complaint is filed or from the date the decision appealed from is rendered?
Whether the applicable rate of interest is 12% or 6%?
Petitioner Eastern Shipping made a shipment which was insured under Insurance Policy withDefendant Mercantile Insurance
One drum of riboflavin was said to be in bad order upon receipt of the consignee (person towhom the shipment is to be delivered)
Mercantile was compelled to pay the consignee
There is sufficient evidence that the shipment sustained damage while in the possession of  petitioner. Eastern was held liable for payment of damages
Established rule on interest in the concept of actual/compensatory damages1.Payment of sum of money in the form of loan/forbearancea. if stipulated in writing – interest shall earn from the time it is judicially demanded b. in the absence of stipulation – 12% per annum to be computed fron time of default (fromtime of judicial/extra-judicial demand was made under Art. 1169)2.NOT in the form of loan/forbearance- may be imposed at the discretion of the court at 6% per annum NO INTEREST SHALL BE ADJUDGED ULESS THE DEMAND CAN BE ESTABLISHEDWITH REASONABLE CERTAINTYa. When demand is established with reasonable certainty – interest begin to run from the timeclaim is made judicially/extra-judicially b. When demand is not certain – interest shall begin to run only from date of judgment of courtis made
Base for Computation – amount finally adjudged
3.When judgment awarding sum of money becomes final and executory – legal interest both 1& 2 shall be
12% until its satisfaction
(Reason: Interim period being deemed to be bythen an equivalent to a forbearance of credit)*Eastern was ordered to pay 6% on the amount due computed from the decision dated February 3,1988, and 12% interest, in lieu of 6%, was imposed on such amount upon finality of the SC decisionuntil the payment thereof.
Tiglao vs. Manila RailroadArt. 1180, Setting of PeriodIssue
W/N a company may be excused for payment of salary diff of its retired employees when theagreement is subject to condition that “salary differentials from date of exhaustion will be paid
whenfunds for the purpose are available
”, if the company is losing its business?
Petitioners are 35 retired employees of defendant company who sought to recover salary diff 
due to them under MOA with defendant
Under the MOA, employed affected by the standardized plan will receive standardized salaries provided that any salary diff from date of exhaustion will be paid when funds for the purposeare available
Art. 1180. When the debtor binds himself to pay when his means permit him to do so, theobligation shall be deemed to be one with a period, subject to the provisions of Article1197.
MOA does not stipulate that salary diff shall be paid only from surplus profits
It is not appearing that defendant was bankcrupt – the obligation to pay said salary diff may beconsidered as one with term whose duration has been left to the will of the debtor, so that pursuant to art. 1197, the duration of the term may be fixed by courts
Javier vs. CA and Leonardo TiroArt. 1181, Suspensive ConditionIssue
W/N an agreement may be nullified for non-performance of the conditions stipulated therein
Petitioner and private respondent entered into an agreement into which Petitioner bound himself to transfer his rights(shares of stocks) on Timberlwealth Corp to private respondent
That for and in consideration of the transfer of rights, Petitioner undertake to pay PrivateRespondent
subject to the condition that the application of Private Respondent for anadditional area for forest concession be approved by Bureau of Forestry
Private Respondent did not obtain the approval
When a contract is subject to a suspensive condition, its birth and effectivity can take place onlyif and when the event which constitutes the condition happens or is fulfilled. I
f the suspensivecondition does not take place, the parties would stand as if the conditional obligation hadnever existed.
Art. 1461 of the Civil Code, the efficacy of the sale of a mere hope or expectancy is deemedsubject to the condition that the thing will come into existence
Parks vs. Province of TarlacArt. 1181, Suspensive vs. Resolutory ConditionFacts
Plaintiff bought the land from Concepcon Ciper and James Hill
Prior to the sale, Ciper and Hill donated the land to province of Tarlac subject to the conditionthat it will be absolutely used for erection of a central school and a public park and the work shall commence within six months from the ratification for the donation
W/N Parks has the right of action to recover the land from municipality of Tarlac on thecondition that the condition is suspensive and therefore the said municipality had neve
acquired a right thereto since the condition was never performed
The Condition is not suspensive it is resolutory
In the present case, the condition that a public school be erected and a public park made on thedonated land, work on the same to commence within 6months from date of ratification of thedonation by parties, could not be complied with except after giving effect to the donation
The done could not do any work on the donated land if the donation had not really beeneffected, because it would be an invasion if another’s title for the land would have continued to belong to the donor so long as the condition was imposed was not complied with. The conditionwas a condition subsequent (resolutory)
Central Phil. University vs. CA, et.al.Art. 1181, Resolutory ConditionIssue/Scope
Effects of Resolutory Condition
Rule when condition has no fixed amount
Don Ramon Lopez donated a parcel of land in favor of CPU, subject to several conditions
Private respondents, heirs of Don Ramon, filed an action for annulment of donation allegingthat for more than 50 years the condition of donation had not complied with, particularly theestablishment of medical college in the university
Under Art. 1181 of the Civil Code, in conditional obligations, the acquisition of rights, aswell as extinguishment or loss of those already acquired shall depend upon happening of the event which constitutes the condition.
Thus, when a person donated a land to another onthe condition that the other would build on the land a school,
the condition imposed was not acondition precedent or suspensive condition but a resolutory condition
When obligation does not fix a period from its nature and circumstances it can be inferred thatthe period was intended, the general rule provided in Art. 1197 of the Civil Code applies, which provides that
the court may fix the duration thereof because the fulfillment of theobligation itself cannot be demanded until the court has fixed the period for compliancetherewith and such period has arrived
However, this general rule cannot be applied in this case. More than a reasonable period of 50years has been allowed for petitioner to avail of the opportunity to comply with the obligation
Art. 1191 of Civil Code, when one of the obligors cannot comply with what is incumbentupon him, the obligee may seek rescission and the court shall decree the same unless thereis just cause authorizing the fixing of the periodTrillana vs. Quezon College, IncArt. 1182, Potestative ConditionIssue/Scope

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