B-04

David v. Court of Appeals

The case is about a controversy regarding the enforcement of a judgment The judgment called for the award of P66k+ plus legal interest Petitioner claims that it should be a compounded interest, hence it will amount to P3M+ So when the property was auctioned out, he bid and won with his P3M+ bid The sheriff claims a SIMPLE interest should be applied and the award will amount to P270k + only So, the sheriff did NOT release the property to Plaintiff because of failure to pay the full amount of his bid Petitioner now prays for the Court to make the sheriff execute the necessary certificate of sale in his favor indicating there that the award is as he believes, P3M+ because it earned a COMPOUND interest.

WON the award should be computed with a COMPOUNDED INTEREST

In the case now before us, the Court of Appeals made the finding that ". . . NO INTEREST WAS STIPULATED BY THE PARTIES. In the promissory note denominated as "Compromise Agreement" signed by the private respondent which was duly accepted by petitioner no interest was mentioned. In his complaint, petitioner merely prayed that defendant be ordered to pay plaintiff the sum of P66,500.00 with interest thereon at the legal rate from the date of the filing of the complaint until fully paid. Clearly here the Philippine American Accident Insurance ruling applies: In cases where no interest had been stipulated by the parties, no accrued conventional interest could further earn interest upon judicial demand.