2/7/2020 Philippine Law Case Digests etc.: Civil Law 2- ObliCon- Danilo Solangon and Ursula Solangon vs.

ObliCon- Danilo Solangon and Ursula Solangon vs. Jose Avelino Salazar

Higit Pa Bumuo ng Blog Mag-sign in

P H I LI P P I NE LAW C AS E D I GE S T S E T C .
T H I S S I T E I S F O R S T U D E N T S W H O N E E D H E L P W I T H T H E I R C A S E L O A D S F O R L AW S C H O O L . -
T HE S E C A S E S W E R E HA N D E D TO US , A N D T HE N D I G E S T E D A N D I W O UL D L I K E TO S HA R E I T W I T H
Y O U G U Y S . I F Y O U N E E D T O S H A R E I T W I T H O T H E R S L I K E P R I N T I N G I T O U T. P L E A S E C I T E T H E
W E B P A G E A S TO G I V E C R E D I T TO W H O M T H E C R E D I T I S D U E T H A N K S . L E AV E YO U R C O M M E N T S
B ELO W !

DE C 4 , 2 0 0 9 FOLLOW BY EM A IL

Civil Law 2- ObliCon- Danilo Solangon and Ursula Email address... Submit
Solangon vs. Jose Avelino Salazar
This case is with regard to Art 1170 of the NCC (Stipulated interest
TO L O O K F O R C A S E S F A S T E R :
held unconscionable)
Search
Case of DANILO SOLANGON AND URSULA SOLANGON vs JOSE
AVELINO SALAZAR
G.R.No. 125994 29June2001 COUNTER

FACTS OF THE CASE:

On 1986, 1987, and 1990 the Solangons’ executed 3 real estate
mortgages in which they mortgaged a parcel of land situated in Sta.
C A S E S B Y TO P I C
Maria, Bulacan, in favor of the Salazar to secure payment of a loan of
P60, 000.00 payable within a period of four (4) months, with interest absurd conclusion (3)
thereon at the rate of 6% per month, to secure payment of a loan of Attorney's Fees (1)
P136, 512.00, payable within a period of one (1) year, with interest Battered Woman Syndrome (1)
thereon at the legal rate, and to secure payment of a loan in the Bouncing Checks (1)
amount of P230, 000.00 payable within a period of four (4) months,
Conspiracy (1)
with interest thereon at the legal rate.
Construction of Insurance Policy (1)
This action was initiated by the Solangons to prevent the foreclosure
Criminal Law (10)
of the mortgaged property. They alleged that they obtained only one
loan form the defendant-appellee, and that was for the amount of Criminal Law 2 (2)
P60, 000.00, the payment of which was secured by the first of the culpa aquiliana (1)

jeffdavid-casedigests.blogspot.com/2009/12/civil-law-2-oblicon-danilo-solangon-and.html 1/5
2/7/2020 Philippine Law Case Digests etc.: Civil Law 2- ObliCon- Danilo Solangon and Ursula Solangon vs. Jose Avelino Salazar

above-mentioned mortgages. The subsequent mortgages were merely Culpable felony (1)
continuations of the first one, which is null and void because it Damages (3)
provided for unconscionable rate of interest. They have already paid Delay (1)
the defendant-appellee P78, 000.00 and tendered P47, 000.00 more, Discernment (1)
but the latter has initiated foreclosure proceedings for their alleged
executive privilege (1)
failure to pay the loan P230, 000.00 plus interest.
exempting circumstances (1)
Fortuitous Events (1)
ISSUES OF THE CASE:
general provisions (2)
Is a loan obligation that is secured by a real estate mortgage with an headnotes (1)
interest of 72% p.a. or 6% a month unconscionable? Homicide (3)
Insanity (1)
- Yes, although the C.B. Circular No 905 lifted the ceiling on interest Insurance (2)
rates there is nothing in the said circular that grants lenders carte interest (3)
blanche authority to raise interest rates to levels which will either
Justifying Circumstance (1)
enslave their borrowers or lead to hemorrhaging of their assets.
law is clear (2)
- In the case of Medel vs. C.A. the S.C. has held that 5.5% per month
Legal Profession (1)
was reduced for being iniquitous, unconscionable and exorbitant
hence it is contrary to morals (contra bonos mores) Legislature (2)
- In this case the Solangons’ are in a worse situation than the Medel minority (1)
case (6% per month interest rate) the said interest rate should be Mitigating (3)
reduced equitably. ObliCon (13)
- Parricide (1)
Political Law (2)
HELD:
Potestative Condition (2)
WHEREFORE, the appealed decision of the Court of Appeals is
Power of Inquiry (1)
AFFIRMED subject to the MODIFICATION that the interest rate of 72%
Quantum Meruit (2)
per annum is ordered reduced to 12 % per annum.
Quasi- Contract (2)
Obligations and Contracts Terms: Quasi- delicts (1)
R.A. 9262 (1)
Legal Interest- the legal rate of interest for the loan or forbearance Rape (1)
of any money, goods or credits, where such loan or renewal or rebellion (2)
forbearance is secured in whole or in part by a mortgage upon real
Reciprocal Obligations (1)
estate the title to which is duly registered, in the absence of express
Robbery (1)
contract as to such rate of interest, shall be 12% per annum, unless it
Security (1)
is unconscionable or contrary to laws, morals, public policy.
jeffdavid-casedigests.blogspot.com/2009/12/civil-law-2-oblicon-danilo-solangon-and.html 2/5
2/7/2020 Philippine Law Case Digests etc.: Civil Law 2- ObliCon- Danilo Solangon and Ursula Solangon vs. Jose Avelino Salazar

Self- defense (2)

I hope this helps. Sources of Contracts (1)
statutory construction (9)
Jeff David Strict Interpretation (1)
P O S T ED B Y J EFFDAV I D1986 AT 3: 59 P M title (1)
LA B ELS : DA M A G ES , I NT ER ES T , O B LI CO N, UNCO NS CI O NA B LE Treachery (1)
R EA CT I O NS :   funny (0) interesting (0) cool (0)
unconscionable (1)

F OR RE SE A RCH N E E DS
1 C O M M E N T:
AUSL- Jurisprudence

Anonymous February 23, 2011 at 5:30 PM House of Representatives- Statutes

Merriam-Webster Dictionary -
what if the upon mortgaging a property with 4% per month to
Definitions
a person, aside from mortgage contract a deed of sale was
also produced for the purpose that failure to pay the loan
amount a deed of sale was signed by the debtor. Hence, the
loan amount interest was being paid unconsecutively but H I ! W E L C O M E TO M Y B L O G .

active in paying. Does the lender can forclose the property? Thank you for visiting this blog. You'll
what if the lender rejected the payments on the capital and find a wealth of information here,
she demanded the full amount of loan? and threatened the with regard to cases, and for some
debtor that a deed of sale was was executed? is that right or of my schoolmates, maybe you would
contrary to law? thank you very much.
find the notes that would be posted
Reply here as really helpful.

I would promise at least one new

Enter your comment... case everyday.

I would also try to have some case

problems so you my classmates would
be able to look into it and practice.
Comment as: lebronxuser@g Sign out

Hope you after viewing the page, you

Publish Preview Notify me would have learned something.

If you need cases digested post them

If you have any comments on the above cases or topics, by all means! at the comments section w/ the

jeffdavid-casedigests.blogspot.com/2009/12/civil-law-2-oblicon-danilo-solangon-and.html 3/5
2/7/2020 Philippine Law Case Digests etc.: Civil Law 2- ObliCon- Danilo Solangon and Ursula Solangon vs. Jose Avelino Salazar

Newer Post
Subscribe to: Post Comments (Atom)
Home Older Post information (i.e. title of case, g.r.
no.) so I can search for them,
although I do not promise that I can
come around to it immediately since
I do have my own classes to worry
about, but I'll try to fit it in.

Thanks again,

Jeff David

OTH E R STU DE N TS

Followers (4)

Follow

CA SE DI G E STS

► 2011 (4)
► 2010 (2)
▼ 2009 (37)
▼ December (6)
Civil Law 2- ObliCon- Heirs of
Luis Bacus vs Court...
Civil Law 2- ObliCon- Francisco
Lao Lim vs Court o...
Civil Law 2- ObliCon- Security
Bank & Trust Co. an...
Civil Law 2- ObliCon- JACINTO
TANGUILIG doing busi...

Civil Law 2- ObliCon- Danilo

Solangon and Ursula S...

jeffdavid-casedigests.blogspot.com/2009/12/civil-law-2-oblicon-danilo-solangon-and.html 4/5
2/7/2020 Philippine Law Case Digests etc.: Civil Law 2- ObliCon- Danilo Solangon and Ursula Solangon vs. Jose Avelino Salazar

Civil Law 2- ObliCon- SECURITY

BANK AND TRUST COMP...

► November (7)

► October (1)
► September (7)
► August (16)

TO TA L P A G E V I E W S

1 6 7 3 4 1
S U B S C R I B E TO T H I S B L O G . . . .

PO S T S

C O M M E NT S

Custom Search Search

jeffdavid-casedigests.blogspot.com/2009/12/civil-law-2-oblicon-danilo-solangon-and.html 5/5