G.R. No. 148980 - PCI LEASING & FINANCE, INC., VS. SPOUSES GEORGE M. DAI AND DIVINA DAI.D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, the trial court dismissed the parties respective claims for damages and attorneys fees. No appeal having been taken from the trial courts decision, it became final and executory. More than a year and a half following the promulgation by the trial court of its decision in Civil Case No. CEB-16691 or on August 26, 1998, petitioner filed a complaint [9] for deficiency judgment and/or collection of sum of money before the Cebu RTC where it was docketed as Civil Case No. CEB-22585 . In its complaint, petitioner alleged, inter alia , as follows: x x x x Subsequent to the aforesaid sale the outstanding obligation of defendants to the plaintiff, inclusive of interest, and net of its P 2,000,000.00, representing the proceeds of the aforesaid sale of the mortgaged property is Philippine Pesos: Nine Hundred Sixty-One Thousand ( P 961,000.00) as of January 16, 1995 exclusive of cost of suit and collection expenses ; Payment of the aforesaid outstanding obligation representing the deficiency claims of the plaintiff arising from the said promissory note (Annex A) is now long overdue but defendants failed and refused and still fail and refuse to pay the same despite demand from plaintiff; It is expressly stipulated in the promissory note (Annex A) that in case the same is referred to an attorney-at-law for collection defendants shall pay attorneys fees in a sum equivalent to ten percent (10%) of the amount due and twenty-five percent (25%) of the total amount due as liquidated damages aside from expenses of collection an[d] costs of suit which amount is equivalent to P 336,350.00[.] x x x x [10] (Underscoring supplied) Petitioner thus prayed that the court render judgment in its favor and against respondents, ordering them to pay. The amount of P 961,000.00 representing the outstanding obligation of the defendants to the plaintiff exclusive of interest, and net of the proceeds of the aforesaid sale of the mortgaged property plus interest from January 16, 1995 ; The amount of P 336,350.00 as attorneys fees and liquidated damages ; The costs of suit and collection expenses. x x x x [11] (Underscoring supplied) In their Answer [12] to the complaint in Civil Case No. CEB-22585, respondents pleaded bar by prior judgment [13] and Article 1484 of the Civil Code [14] which provides: Art. 1484. In a contract of sale of personal property the price of which is payable in installments, the vendor may exercise any of the following remedies: Exact fulfillment of the obligation, should the vendee fail to pay; Cancel the sale, should the vendees failure to pay cover two or more installments; Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the vendees failure to pay cover two or more installments. In this case, he shall have no further action against the purchaser to recover any unpaid balance of the price . Any agreement to the contrary shall be void. (Underscoring supplied) By Decision of November 22, 1999, Branch