G.R. No. 138085 - AZOLLA FARMS AND FRANCISCO R. YUSECO, VS. COURT OF APPEALS AND SAVINGS BANK OF MANILA.DECISION - Supreme Court E-Library

Ruling

WHEREFORE, judgment is hereby rendered: DECLARING -- (a) the promissory notes and real estate mortgage executed by plaintiff Yuseco novated, if not unenforceable; (b) any subsequent foreclosure or sale of the real estate property, without any binding effect; ORDERING -- (1) the defendants to return full, uninterrupted and complete possession and ownership of the subject real estate property to plaintiff Francis R. Yuseco, Jr.; (2) the defendant to pay plaintiffs: (a) P1,000,000.00 as actual damages; (b) P200,000.00, as moral damages for the personal sufferings, mental anguish, serious anxiety, social humiliation of plaintiff Yuseco; (c) P50,000.00, as reasonable attorneys fees; and (d) legal interest on the actual damages herein awarded from date of filing the Complaint until fully paid. The Counterclaim interposed by the defendant in its Answer is hereby dismissed, for lack of merit. Costs against the defendant. [16] Aggrieved, respondent elevated the case to the Court of Appeals. Finding merit in respondents appeal, the Court of Appeals reversed and set aside the trial courts decision per its Decision dated February 19, 1999, the decretal portion of which reads: WHEREFORE, premises considered, the decision of the trial court in Civil Case No. 83-20514 is hereby REVERSED and SET ASIDE and judgment is hereby entered declaring the promissory notes and real estate mortgage executed in favor of defendant-appellant, as well as the extrajudicial foreclosure and sale of the mortgaged property, as valid and binding. Defendant-appellant is hereby ordered to pay plaintiff Azolla Farms International Philippines, Inc. the amount of fifty thousand pesos (P50,000.00) as nominal damages. No costs. SO ORDERED.