PHILIPPINE NATIONAL BANK, plaintiff-appellee,

vs.
MANILA OIL REFINING & BY-PRODUCTS COMPANY, INC., defendant-appellant.

FACTS:

Manila Oil Refining & By-Products Company, Inc., executed and delivered to the
Philippine National Bank, a written instrument promising to pay to the order of the latter
P61,000.00 and stipulating that in case the note be not paid at maturity, it authorizes
any attorney in the Philippine Islands to appear in its name and confess judgment for
the above sum with interest, cost of suit and attorney's fees of ten (10) per cent for
collection, a release of all errors and waiver of all rights to inquisition and appeal, and to
the benefit of all laws exempting property, real or personal, from levy or sale.

The Manila Oil Refining and By-Products Company, Inc. failed to pay. The Philippine
National Bank brought action. An attorney associated with the Philippine National Bank
entered his appearance in representation of Manila Oil Refining & By-Products
Company, Inc, and filed a motion confessing judgment.

ISSUE:

Is the provision in a promissory note which authorizes any attorney to appear and
confess judgment thereon in case the same be not paid at maturity valid.

HELD:

Warrants of attorney to confess judgment are not authorized nor contemplated by our
law. The provisions in notes authorizing attorneys to appear and confess judgments
against makers should not be recognized in this jurisdiction by implication and should
only be considered as valid when given express legislative sanction.

Such warrants of attorney are void as against public policy. They enlarge the field for
fraud, the promissor bargains away his right to a day in court, and it strikes down the
right of appeal accorded by statute. It might be the source of abuse and oppression, and
make the courts involuntary parties thereto.

BERTES, A. L.