CASE DIGEST

Villaroel v. Estrada
Obligations and Contracts

Court Supreme Court

Date December 19, 1940
Defendant-Appellant Juan F. Villaroel
Plaintiff-Appellee Bernardino Estrada
Ponente Avancena, J.
Relevant topic Natural Obligations

FACTS:
 On May 9, 1912, Alejandro Callao, mother of Villaroel, obtained a loan of P1, 000 from the spouses Mariano
and Severina Estrada, payable after 7 years. Callao died, leaving Villaroel as the only heir. The spouses also
died leaving herein plaintiff as sole heir.
 On Aug. 9, 1930, Villaroel signed a document declaring the amount of P1, 000 owed to plaintiff, with interest
of 12% per year
 The CFI of Laguna ordered Villaroel to pay said amount with interest of 12% a year from Aug. 9, 1930 until
complete payment. Villaroel appealed

ISSUE – HELD – RATIO:

ISSUES HELD
WON Villaroel has an obligation to pay the debt to plaintiff YES

RATIO:
 The question raised in the appeal is whether, despite prescription of the action to recover the original debt, the
action filed is appropriate. However, the action in the case at bar is not based on the original obligation
contracted by Callao, which has already prescribed, but on the subsequent one contracted by Villaroel on
Aug. 9, 1930
 Villaroel being the only heir of Callao, the debt incurred by the latter, already prescribed, is now a moral
obligation for the former
 The rule that a new promise to pay a pre-written debt must be made by the same obligated person or by
another legally authorized by the same, does not apply in the present case since what is being demanded is
not the fulfilment of the obligation of the original debtor, but the fulfilment of the promise to pay the prescribed
obligation
 A new contract assuming the obligation, despite one’s knowledge that the debt has prescribed, waived the
benefit of the prescription

RULING:
WHEREFORE, the sentence appealed is confirmed, with the costs to the appellant.

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