G.R. NO. 144732 - ROLANDO LIMPO, VS. COURT OF APPEALS AND SECURITY BANK AND TRUST COMPANY.

Ruling

Accordingly, the Court adopts said findings, which are reproduced as follows: On November 11, 1980, plaintiff Security Bank & Trust Company filed a complaint for a Sum of Money with the Regional Trial Court of Pasig, Branch 158 entitled Security Bank & Trust Company, plaintiff, - versus Miguel F. Uy, Brigitte E. Uy and Rolando Limpo, defendants[.] Plaintiff Bank sought to recover the outstanding balance of a promissory note executed by the defendants. On February 1, 1983, defendants-spouses Miguel F. Uy and Brigitte Uy entered into a Compromise Agreement with plaintiff bank. On March 22, 1983, the trial court rendered decision, reproducing therein the pertinent provisions of the Compromise Agreement as follows: 1. Defendant spouses admit liability to the plaintiff the said amount of P38,833.44 as of January 12, 1983; 2. Defendant spouses agree to pay the plaintiff the said amount of P38,833.44 with interest at the rate of 20% per annum with aforesaid interest rate computed based on declining balance, from January 12, 1983 in the following manner: a) P4,644.00 on or before March 14, 1983 of which P500.00 shall be applied as attorneys fee; P144.00 the cost of suit, and the remaining balance to the outstanding loan obligation; b) P4,000.00 each on or before the 15th day of each month commencing April 1983 until June 1, 1983; c) P1,500.00 on or before the 15th day of each month commencing July 1983 until the balance and accruing interest thereon is fully paid. 3. In case of failure to pay any installment when due, the whole balance shall become due and payable, without necessity of demand and defendant spouses shall be assessed a default penalty of 3% per month until the obligation is fully paid. Moreover, plaintiff shall be entitled to a writ of execution upon ex-parte motion. ( RTC Decision, p. 1 ) When defendants failed to comply with the terms and conditions of the compromise agreement, plaintiff bank, on November 27, 1984, filed an Ex-Parte Motion for the Issuance of Writ of Execution . The motion not having been acted upon, plaintiff bank, on July 22, 1992, filed a complaint for Revival of Judgment. The defendant-spouses, in their Answer, alleged as their defense laches, for failure of plaintiff bank to enforce its rights for more than eight (8) years. Defendant Limpo, on the other hand, alleged that he is not obligated to pay any amount to plaintiff under the said compromise agreement which was entered into only by and between plaintiff and defendant spouses Miguel F. Uy and Brigitte E. Uy without his knowledge and consent. ( Records, p. 31 ) On February 5, 1993, plaintiff bank filed a Motion for Judgment on the Pleadings alleging that defendants spouses Answer failed to tender genuine issues. On April 20, 1993, the trial court issued an order against defendants spouses ordering them to pay plaintiff bank the amount of P38,833.44 with interest at the rate of 20% per annum computed from January 12, 1983 until the amount is fully pai