Commercial
Remedial
Ponente: GRIÑO-AQUINO, J.
Decision Date: 1989-09-26
GR Number: G.R. No. 78519
Digest Team
4 months ago
Avg. Rating:
Summary:
This case involves a petition for review on certiorari to annul and set aside the Court of Appeals' decision affirming the trial court's decision in favor of the respondents. The case revolves around the petitioner's time deposits in the respondent bank, which were assigned as collateral for her outstanding debt with Cams Trading Enterprises, Inc. The bank agreed to encash the time deposit certificates at the request of Cams Trading, resulting in the petitioner demanding the restoration of her time deposit. The trial court dismissed the complaint, and the Court of Appeals affirmed the dismissal. The petitioner alleges that the encashment was a pactum commissorium and that her obligations had already been paid.
Doctrine:
The Court of Appeals found that the deeds of assignment were contracts of pledge, and as the collateral was money, the provision for the sale of the pledged property at public auction did not have to be followed. The encashment of the time deposit certificates was not a pacto commissorio, which is prohibited under the Civil Code. A pacto commissorio is a provision for the automatic appropriation of the pledged property by the creditor in payment of the loan upon its maturity. The prohibition against pacto commissorio aims to protect the obligor, pledgor, or mortgagor from being overreached by the creditor.
Facts:
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Issues Ratio:
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Dispositive:
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Donec enim diam vulputate ut pharetra sit amet aliquam id. Gravida rutrum quisque non tellus. Donec ultrices tincidunt arcu non. Ut aliquam purus sit amet. Pulvinar neque laoreet suspendisse interdum consectetur. Non enim praesent elementum facilisis leo vel fringilla est ullamcorper. Interdum varius sit amet mattis vulputate enim. Sagittis vitae et leo duis ut. Commodo quis imperdiet massa tincidunt nunc pulvinar sapien. Erat imperdiet sed euismod nisi porta. Nulla facilisi nullam vehicula ipsum a arcu cursus vitae. Amet aliquam id diam maecenas ultricies mi eget. Sit amet nulla facilisi morbi tempus iaculis urna id volutpat. Volutpat consequat mauris nunc congue nisi vitae. Sagittis eu volutpat odio facilisis mauris. A arcu cursus vitae congue mauris rhoncus. Amet purus gravida quis blandit. Faucibus vitae aliquet nec ullamcorper sit amet. Sed egestas egestas fringilla phasellus faucibus scelerisque eleifend donec pretium.
Other Notes:
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
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