G.R. No. 205068 - HEIRS OF RENATO P. DRAGON, REPRESENTED BY PATRICIA ANGELI D. NUBLA, VS. THE MANILA BANKING CORPORATION.DECISION - Supreme Court E-Library

Ruling

WHEREFORE, premises considered, it is most respectfully prayed that, after hearing, judgment be rendered ordering the defendant to pay plaintiff the above principal sum of P6,945,642, plus interests, penalties, and attorney's fees computed up to the date of actual payment pursuant to the corresponding Promissory Notes. Plaintiff further prays for such other reliefs and remedies as may be deemed just and equitable in the premises. [14] In his Answer with Compulsory Counterclaim, [15] Dragon claimed that he had already partially paid his debts to Manila Banking, [16] and that his loans with the bank had been extinguished by novation. Allegedly, in 1984, Kalilid Wood Industries Corporation (Kalilid Wood), of which he was an officer and stockholder, wrote to Manila Banking requesting that Kalilid Wood's loans and the accounts of other persons, including that of Dragon's, be restructured. Manila Banking allegedly agreed to the restructuring, allowing Kalilid Wood to assume Dragon's loan obligations, including those covered by the four (4) Promissory Notes. Supposedly, this novation was confirmed in an April 22, 1991 Decision of the Regional Trial Court, Branch 58 of Makati City in Civil Case No. 46961 titled, " The Manila Banking Corporation v. Builders Wood Products, Inc., Claudio J. Sanchez, Horacio Abrantes, and Renato P. Dragon " which had become final and executory. [17] Dragon further claimed that Manila Banking's cause of action had prescribed, since it failed to demand payment on the Promissory Notes within 10 years from their due date. He alleged that he never received the demand letters sent by Manila Banking, which would have otherwise interrupted the prescriptive period. [18] He prayed that he be awarded P2,000,000.00 as moral damages for Manila Banking's act of dispossessing him of his properties for the settlement of accounts that could not be established, which allegedly caused him emotional trauma. [19] On September 26, 2007, the Regional Trial Court issued its Decision [20] in favor of Manila Banking. The dispositive portion of the Decision read: WHEREFORE, plaintiff having proved its claim by preponderance of evidence against defendant Renato P. Dragon, judgment is hereby rendered ordering defendant to pay plaintiff the following: The amount of Php6,945,642.00 plus interest and penalties, the rates of which are indicated in the [preceding] paragraphs starting August 12, 1998 until the obligation is fully paid; Attorney's fees equivalent to 5% of the total amount due; Costs of suit. SO ORDERED.