Pay v. Vda. de Palanca

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G.R. No. L-29900

Republic of the Philippines
SUPREME COURT
Manila
SECOND DIVISION
G.R. No. L-29900 June 28, 1974
IN THE MATTER OF THE INTESTATE ESTATE OF JUSTO PALANCA, Deceased,
GEORGE PAY, petitioner-appellant,
vs.
SEGUNDINA CHUA VDA. DE PALANCA, oppositor-appellee.
Florentino B. del Rosario for petitioner-appellant.
Manuel V. San Jose for oppositor-appellee.
FERNANDO, J.:p
There is no difficulty attending the disposition of this appeal by petitioner on questions of
law. While several points were raised, the decisive issue is whether a creditor is barred by
prescription in his attempt to collect on a promissory note executed more than fifteen years
earlier with the debtor sued promising to pay either upon receipt by him of his share from a
certain estate or upon demand, the basis for the action being the latter alternative. The lower
court held that the ten-year period of limitation of actions did apply, the note being
immediately due and demandable, the creditor admitting expressly that he was relying on the
wording "upon demand." On the above facts as found, and with the law being as it is, it
cannot be said that its decision is infected with error. We affirm.
From the appealed decision, the following appears: "The parties in this case agreed to submit
the matter for resolution on the basis of their pleadings and annexes and their respective
memoranda submitted. Petitioner George Pay is a creditor of the Late Justo Palanca who died
in Manila on July 3, 1963. The claim of the petitioner is based on a promissory note dated
January 30, 1952, whereby the late Justo Palanca and Rosa Gonzales Vda. de Carlos Palanca
promised to pay George Pay the amount of P26,900.00, with interest thereon at the rate of
12% per annum. George Pay is now before this Court, asking that Segundina Chua vda. de
Palanca, surviving spouse of the late Justo Palanca, he appointed as administratrix of a certain
piece of property which is a residential dwelling located at 2656 Taft Avenue, Manila,
covered by Tax Declaration No. 3114 in the name of Justo Palanca, assessed at P41,800.00.
The idea is that once said property is brought under administration, George Pay, as creditor,
can file his claim against the administratrix." 1 It then stated that the petition could not prosper
as there was a refusal on the part of Segundina Chua Vda. de Palanca to be appointed as
administratrix; that the property sought to be administered no longer belonged to the debtor,
the late Justo Palanca; and that the rights of petitioner-creditor had already prescribed. The
promissory note, dated January 30, 1962, is worded thus: " `For value received from time to
time since 1947, we [jointly and severally promise to] pay to Mr. [George Pay] at his office at
the China Banking Corporation the sum of [Twenty Six Thousand Nine Hundred Pesos]
(P26,900.00), with interest thereon at the rate of 12% per annum upon receipt by either of the
undersigned of cash payment from the Estate of the late Don Carlos Palanca or upon
demand'. . . . As stated, this promissory note is signed by Rosa Gonzales Vda. de Carlos
Palanca and Justo Palanca." 2 Then came this paragraph: "The Court has inquired whether any
cash payment has been received by either of the signers of this promissory note from the
Estate of the late Carlos Palanca. Petitioner informed that he does not insist on this provision
but that petitioner is only claiming on his right under the promissory note ." 3 After which,
came the ruling that the wording of the promissory note being "upon demand," the obligation
was immediately due. Since it was dated January 30, 1952, it was clear that more "than ten
(10) years has already transpired from that time until to date. The action, therefore, of the
creditor has definitely prescribed." 4 The result, as above noted, was the dismissal of the
petition.
In an exhaustive brief prepared by Attorney Florentino B. del Rosario, petitioner did assail
the correctness of the rulings of the lower court as to the effect of the refusal of the surviving
spouse of the late Justo Palanca to be appointed as administratrix, as to the property sought to
be administered no longer belonging to the debtor, the late Justo Palanca, and as to the rights
of petitioner-creditor having already prescribed. As noted at the outset, only the question of
prescription need detain us in the disposition of this appeal. Likewise, as intimated, the
decision must be affirmed, considering the clear tenor of the promissory note.
From the manner in which the promissory note was executed, it would appear that petitioner
was hopeful that the satisfaction of his credit could he realized either through the debtor sued
receiving cash payment from the estate of the late Carlos Palanca presumptively as one of the
heirs, or, as expressed therein, "upon demand." There is nothing in the record that would
indicate whether or not the first alternative was fulfilled. What is undeniable is that on August
26, 1967, more than fifteen years after the execution of the promissory note on January 30,
1952, this petition was filed. The defense interposed was prescription. Its merit is rather
obvious. Article 1179 of the Civil Code provides: "Every obligation whose performance does
not depend upon a future or uncertain event, or upon a past event unknown to the parties, is
demandable at once." This used to be Article 1113 of the Spanish Civil Code of 1889. As far
back as Floriano v. Delgado, 5 a 1908 decision, it has been applied according to its express
language. The well-known Spanish commentator, Manresa, on this point, states: "Dejando
con acierto, el caracter mas teorico y grafico del acto, o sea la perfeccion de este, se fija, para
determinar el concepto de la obligacion pura, en el distinctive de esta, y que es consecuencia
de aquel: la exigibilidad immediata." 6
The obligation being due and demandable, it would appear that the filing of the suit after
fifteen years was much too late. For again, according to the Civil Code, which is based on
Section 43 of Act No. 190, the prescriptive period for a written contract is that of ten years. 7
This is another instance where this Court has consistently adhered to the express language of
the applicable norm. 8 There is no necessity therefore of passing upon the other legal
questions as to whether or not it did suffice for the petition to fail just because the surviving
spouse refuses to be made administratrix, or just because the estate was left with no other
property. The decision of the lower court cannot be overturned.
WHEREFORE, the lower court decision of July 24, 1968 is affirmed. Costs against George
Pay.
Zaldivar (Chairman), Barredo, Antonio, Fernandez and Aquino, JJ., concur.
Footnotes
1 Decision, Record on Appeal, 46-47.
2 Ibid, 48-49.
3 Ibid, 49.
4 Ibid.
5 11 Phil. 154.
6 VIII Manresa, Codigo Civil Espaol, Quinta edicion, 305 (1950)..
7 Article 1144 of the Civil code provides: "The following actions must
be brought within ten years from the time the right of action accrues:
(1) Upon a written contract; (2) Upon an obligation created by law;(3)
Upon a judgment."
8 Cf. Azarraga v. Rodriguez, 9 Phil. 637 (1908); Brillantes v.
Margarejo, 36 Phil. 202 (1917); Agoncillo v. Javier, 38 Phil. 424
(1918); Sarmiento v. Javellana, 43 Phil. 880 (1922); Ban Kiat and Co.
v. Atkins, Kroll and Co., 44 Phil. 4 (1922); F. M. Yap Tico and Co. v.
Lopez Vito, 49 Phil. 61 (1926); Parks v. Province of Tarlac, 49 Phil.
142 (1926); Hospicio de San Jose v. Fidelity and Surety Co., 52 Phil.
926 (1929); Lutero Suiliong and Co., 54 Phil. 272 (1930); De Borja v.
De Borja, 58 Phil. 811 (1933); International Banking Corp. v. Yared,
59 Phil. 72 (1933); Barretto v. Tuason, 59 Phil. 845 (1934); Hijos de F.
Escano v. Nazareno, 60 Phil. 104 (1934); Matute v. Matute, 62 Phil.
676 (1935); Cunanan v. De Antepasado. L-16169. Aug 31, 1962, 5
SCRA 1028; General Insurance and Surety Corp. v. Republic, L13873, Jan. 31, 1963, 7 SCRA 4.
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G.R. No. L-29900

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