Aquintey v. Tibong
REITERATIONFacts
The Antecedents: Petitioner Agrifina Aquintey filed a complaint for sum of money and damages against respondents Spouses Felicidad and Rico Tibong, alleging that Felicidad secured loans from her on several occasions at monthly interest rates of 6% to 7%, with an outstanding balance of P773,000.00 exclusive of interests. Respondents admitted securing loans but claimed that the execution of deeds of assignment in favor of Agrifina and promissory notes executed by their debtors resulted in the novation of the original obligation, thereby extinguishing their debt. Procedural History: The Regional Trial Court (RTC) ruled in favor of Agrifina, ordering the spouses Tibong to pay P472,000.00 plus stipulated interest, finding that the obligation was not novated. The Court of Appeals (CA) modified the decision, reducing the principal amount to P51,341.00 plus interest, holding that the deeds of assignment had the effect of payment pro tanto and that Agrifina's primary recourse was against the debtors of the spouses Tibong. Both parties moved for reconsideration, which were denied. The Petition: Agrifina filed a petition for review, arguing that the CA erred in ruling that the deeds of assignment had the effect of payment, in passing upon issues not raised on appeal, and in resolving facts not in issue. She contended that the respondents' obligation was not novated and that she could still collect from both respondents and their debtors.
Issue(s)
Whether respondent Felicidad Tibong borrowed P773,000.00 from petitioner. Whether the obligation of respondents to pay the balance of their loans, including interest, was partially extinguished by the execution of the deeds of assignment in favor of petitioner, relative to the loans of Edna Papat-iw, Helen Cabang, Antoinette Manuel, and Fely Cirilo in the total amount of P371,000.00.
Ruling
The petition is DENIED. The Decision and Resolution of the Court of Appeals are AFFIRMED with MODIFICATION in that the balance of the principal account of the respondents to the petitioner is P33,841.00. No costs.
Ratio Decidendi
On whether respondent Felicidad Tibong borrowed P773,000.00 from petitioner: The Court found that the respondents admitted securing loans from the petitioner. While they specifically denied the allegations in paragraph 2 of the complaint, they failed to declare the exact amount of the loans and did not deny the allegation that respondent Felicidad signed a counter-affidavit admitting loans totaling P773,000.00. Furthermore, they failed to specifically deny allegations regarding specific loans, such as the P34,000.00 and P100,000.00 loans, and the existence of a receipt for the P34,000.00 loan. Consequently, the Court held that the respondents had admitted the existence of their P773,000.00 loan from petitioner, reversing the CA's finding based solely on the loss of receipts. On whether the obligation was partially extinguished by the deeds of assignment: The Court affirmed the CA's finding that the obligation was extinguished pro tanto by the deeds of assignment, which constituted dacion en pago. The Court explained that an assignment of credit can be a form of dacion en pago when a debtor assigns a credit against a third person to the creditor as an accepted equivalent of performance. The requisites for dacion en pago were found to be present: a performance in lieu of payment (assignment of credits), a difference between the prestation due and that given (aliud pro alio), and an agreement between the creditor and debtor that the obligation is extinguished by this performance. The Court noted that petitioner agreed to relieve Felicidad of her obligation and collect from her debtors, and that petitioner collected P301,000.00 from these debtors. The Court emphasized that petitioner, as assignee, acquired all the rights of Felicidad, including the right to collect from her debtors, and that collecting from both Felicidad and her debtors would constitute unjust enrichment.
Main Doctrine
The execution of deeds of assignment of credits by a debtor in favor of a creditor, with the conformity of the creditor, to make good in part the debtor's obligation, constitutes dacion en pago, thereby extinguishing the obligation pro tanto, and the creditor cannot collect both from the debtor and the assigned debtors without unjustly enriching herself.