G.R. No. 149569 - PHILIPPINE NATIONAL BANK, VS. RBL ENTERPRISES, INC.; RAMON B. LACSON SR.; AND SPOUSES EDWARDO AND HERMINIA LEDESMA.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE , premises considered[,] the judgment appealed from is hereby AFFIRMED , with x x x MODIFICATION as follows: 1. The amount of actual damages and losses is reduced from P985,722.15 to merely P380,713.55 with legal interest from the date of the filing of the complaint. The interest payable on the loan is ordered reduced by using the agreed interest rate of 18% per annum in the computation[;] 2. The amount of moral damages is reduced from P100,000.00 to P50,000.00; 3. The amount of exemplary damages is reduced from P50,000.00 to P30,000.00; and 4. The award of attorneys fees is reduced from P200,000.00 to P50,000.00. [3] The Facts The facts of the case are narrated in the assailed Decision of the CA, as follows: 1. On April 28, 1993, [respondents] instituted an action against [Petitioner] PNB and the Provincial Sheriff of Negros Occidental alleging among others, the following: (a) Sometime in 1987, [respondents] opened a prawn hatchery in San Enrique, Negros Occidental, and for this purpose, leased from Nelly Bedrejo a parcel of land where the operations were conducted; (b) In order to increase productions and improve the hatchery facilities, [respondents] applied for and was approved a loan of P2,000,000.00, by [Petitioner] PNB. To secure its payment, [respondents] executed in favor of PNB, a real estate mortgage over two (2) parcels of land, located at Bago City, Negros Occidental, covered by Transfer Certificate of Title Nos. T-13005 and T-12642 in the names of [respondents], and another real [estate] and chattel mortgage over the buildings, culture tanks and other hatchery facilities located in the leased property of Nelly Bedrejo; (c) PNB partially released to [respondents] on several dates, the total sum of P1,000,000.00 less the advance interests, which amount [respondents] used for introducing improvements on the leased property where the hatchery business was located. (d) During the mid-part of the construction of the improvements, PNB refused to release the balance of P1,000,000.00 allegedly because [respondents] failed to comply with the banks requirement that Nelly Bedrejo should execute an undertaking or a lessors conformity provided in Real Estate and Chattel Mortgage contract dated August 3, 1989, which states, par. 9.07. It is a condition of this mortgage that while the obligations remained unpaid, the acquisition by the lessor of the permanent improvements covered by this Real Estate Mortgage as provided for in the covering Lease Contract, shall be subject to this mortgage. For this purpose, the mortgagor hereby undertakes to secure the lessors conformity hereto. (e) For said alleged failure of [respondents] to comply with the additional requirement and the demand of PNB to pay the released amount of P1,000,000.00, PNB foreclosed the mortgaged properties, to the detriment of [respondents]. (f) Due to the non-release of the remaining balance of the loan applied for and approved, the productions-operation