G.R. NO. 169647 - ANTONIO CHIENG, SUBSTITUTED BY WILLIAM CHIENG, VS. SPOUSES EULOGIO AND TERESITA SANTOS.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, judgment is hereby rendered ordering the [ herein respondents] to pay [herein petitioner] within 90 days from receipt of this Decision the sum of P600,000.00 with legal rate of interest of 12% per annum from August 13, 1992 until the amount is fully paid; to pay [petitioner] the amount of P60,000.00 as attorney's fees; and the costs of this suit. In default of such payment, the Sheriff of this Court is ordered to sell at public auction the property described in the Deed of Real Estate Mortgage x x x together with the improvements thereon and apply the proceeds thereof to the principal obligation, interests, attorney's fees and the costs of this suit. Respondents filed a Motion for Reconsideration [9] arguing: [C]onsidering that another branch of this Honorable Court, particularly Branch 72 through Judge Esther Nobles Bans had issued an order fixing the actual obligation of the [herein respondents] to [herein petitioner] in the sum of P200,000.00 with the conformity of both the herein parties, a copy of the said order is hereto attached as Annex "I" of this motion for the ready reference and guidance of this Honorable Court. In effect, the said order is in the nature of a judicial compromise or judgment that should be strictly complied with and/or honored by the herein parties, unless the same was entered into through palpable mistake. Besides, it would be the height of injustice to compel the herein [respondents] to pay more than P200,000.00 when the herein parties had already pegged the obligation of the herein [respondents] to the said [petitioner] in the sum of P200,000.00. On 6 October 1997, the court issued an Order setting aside its earlier Decision dated 9 July 1997. [10] Respondent Eulogio explained that he issued several checks amounting to P107,000.00 in favor of petitioner as partial payment of the loan as evidenced by a memorandum. He added that some of the checks he issued bounced; thus, he and his wife failed to fully discharge their loan. Instead of foreclosing the mortgage on their property, petitioner chose to institute criminal cases against respondent Eulogio for issuing bouncing checks in violation of Batas Pambansa Blg. 22, docketed as Criminal Cases No. 612-90 to No. 615-90 before the Olongapo City RTC, Branch 72. He bared that the P200,000.00 which he was directed to pay petitioner by the Olongapo City RTC, Branch 72 in its Order dated 15 July 1991 in Criminal Cases No. 612-90 to No. 615-90 was the same subject of Civil Case No. 239-0-93 pending with the Olongapo City RTC, Branch 74. On 23 September 1998, petitioner passed away. [11] Thereafter, his heirs filed a motion to substitute him in Civil Case No. 239-0-93. [12] In its Order dated 12 January 1999, the Olongapo City RTC, Branch 74 granted the motion and directed the substitution of petitioner by his son, William Chieng. [13] On 23 October 2001, the Olongapo City RTC, Branch 74 rendered a Decision in Civil Case No. 239-0-93 directing the respondents to pay