(78) Tibajia, Jr.v. CA,GR 100290, June 4, 1993 [Per J.

Padilla, Second Division]

NORBERTO TIBAJIA, JR. and CARMEN TIBAJIA, Petitioners

THE HONORABLE COURT OF APPEALS and EDEN TAN, Respondents.

FACTS:

This a suit for collection of a sum of money filed by Eden Tan against the Tibajia spouses. Eden Tan,
refused to accept the payment made by the Tibajia spouses and instead insisted that the garnished
funds deposited with the cashier of the Regional Trial Court to be withdrawn to satisfy the judgment
obligation. Spouses Tibaija filed a motion to lift the writ of execution on the ground that the judgment
debt had already been paid. The motion was denied by the trial court on the ground that payment in
cashier’s check is not payment in legal tender and that payment was made by a third party other than
the Spouses. It is contended by the Spouses Tibaija that the cashier’s which was a crossed check marked
"For Payee’s Account Only" and payable to Eden Tan, is considered legal tender, payment with which
operates to discharge their monetary obligation.

 amount is 442, 750 – cashier check – 262 750

Cash – 135, 733.70

Tan refuses to accept

What have we learned about the topic?

Article 1249 states that the payment of debts in money shall be made in the currency stipulated, and if it
is not possible to deliver such currency, then in the currency which is legal tender in the Philippines.

The delivery of promissory notes payable to order, or bills of exchange or other mercantile documents
shall produce the effect of payment only when they have been cashed, or when through the fault of the
creditor they have been impaired.

In the meantime, the action derived from the original obligation shall be held in abeyance.

What does the case teach us?

Whether or not payment by means of check is considered payment in legal tender.

No. In one of the decided cases of the Supreme Court held that "A check, whether a manager’s check or
ordinary check, is not legal tender, and an offer of a check in payment of a debt is not a valid tender of
payment and may be refused receipt by the obligee or creditor."
The Civil Code states that the payment of debts in money shall be made in the currency stipulated, and if
it is not possible to deliver such currency, then in the currency which is legal tender in the Philippines.
The delivery of promissory notes payable to order, or bills of exchange or other mercantile documents
shall produce the effect of payment only when they have been cashed, or when through the fault of the
creditor they have been impaired.

Here, Eden Tan, refused to accept the payment made by the Tibajia spouses in the form of cashier’s
check. As the Court decided in the previous cases, a check is not a legal tender. The ruling in previous
jurisprudence merely applies the statutory provisions which lay down the rule that a check is not legal
tender and that a creditor may validly refuse payment by check, whether it be a manager’s, cashier’s or
personal check.