G.R. No. 116216 - NATALIA S. MENDOZA, VS. COURT OF APPEALS, THOMAS B. ASUNCION AND NENA T. ASUNCION.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, the trial courts decision appealed from is REVERSED and SET ASIDE. In lieu thereof, judgment is hereby rendered in favor of appellants [herein private respondents] and against appellees [herein petitioner and her (now deceased) husband], ordering appellees to pay appellants the amount of P584,472.00 representing the unpaid obligation of appellees to appellants under the promissory note, Exhibit A, together with legal interest, which is 6% per annum computed from May 23, 1983 (date of filing the complaint) until the full amount thereof is fully paid, plus ten (10) per cent thereof as attorneys fees at (sic) the costs of suit. For lack of merit, the subsequent motion for reconsideration was denied by Respondent Court of Appeals in a Resolution promulgated on July 11, 1994. [4] The Facts Respondent appellate court narrated the undisputed facts in this case as follows: [5] On August 4, 1978 appellees [herein petitioner and her husband] signed a promissory note dated July 10, 1978, for US$35,000.00 in favor of appellants [herein private respondents], in Los Angeles, California, U.S.A. The text of the promissory note is as follows: PROMISSORY NOTE $35,000.00 10 July 1978 For value received, the undersigned SERGIO E. MENDOZA, and NATALIA S. MENDOZA, husband and wife, promise to pay THOMAS B. and NENA T. ASUNCION, husband and wife, the amount of $456.00 each month starting on (sic) April, 1978 and 120 consecutive months, thereafter. On (sic) April 1988, the entire balance of principal and accrued interest then remaining unpaid shall be due and payable. Should default be made in the payment of the interest and principal when due, the entire balance of principal and interest then remaining unpaid shall become immediately due at the option of the holder of this note. Principal and interest payable in lawful money of the United States of America. If action be instituted on this note, the undersigned promise to pay such sum as the court may fix as attorneys fees. This note is secured by properties in the Philippines, the Restaurant at Roxas Blvd., Philippines, business interests in the United States, life insurances (sic) and shall go to THOMAS B. and NENA T. ASUNCION. In Witness Whereof, we hereby sign this promissory note this 4 day of August, 1978. SERGIO E. MENDOZA NATALIA S. MENDOZA. From April, 1978 to December, 1981, appellees made monthly payments on the promissory note to appellants in the amount of US$500.00 a month or a total of US$22,500.00. In addition, appellees made payments to appellants daughter Helen Asuncion in the amount of US$3,620.17. Also appellees made payments, apparently also for the benefit of appellants, in the total amount of US$1,560.00 to Regina Pangan and/or Teresita Angeles. [6] The payments to Helen Asuncion in the amount of US$3,620.17 and to Regina Pangan and Teresita Angeles in the amount of US$1,560.00 or a total amount of US$5,180.17 paid to both, were apparently made during the year 1982. The am