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    Perez V Ca

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    Pauline Quitangon
    This case involves a dispute over payment of promissory notes between Corazon Perez, Mever Films Inc., and Congeneric Development & Finance Corporation. Congeneric issued promissory notes to Ramon Mojica, which were later assigned to Mever. Corazon Perez partially covered the debt. Mever made some payments to Congeneric but a dispute arose over whether Mever's obligations were fully extinguished. The Court of Appeals found legal compensation had occurred, but the Supreme Court reversed, finding the requirements for legal compensation were not met since Mever was not a creditor of Congeneric at the time of maturity. The Supreme Court reinstated the trial court's ruling that Mever still

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    Perez V Ca

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    Pauline Quitangon
    305 views2 pages
    This case involves a dispute over payment of promissory notes between Corazon Perez, Mever Films Inc., and Congeneric Development & Finance Corporation. Congeneric issued promissory notes to Ramon Mojica, which were later assigned to Mever. Corazon Perez partially covered the debt. Mever made some payments to Congeneric but a dispute arose over whether Mever's obligations were fully extinguished. The Court of Appeals found legal compensation had occurred, but the Supreme Court reversed, finding the requirements for legal compensation were not met since Mever was not a creditor of Congeneric at the time of maturity. The Supreme Court reinstated the trial court's ruling that Mever still

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    Case Digest

    Original Title

    PEREZ V CA

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    This case involves a dispute over payment of promissory notes between Corazon Perez, Mever Films Inc., and Congeneric Development & Finance Corporation. Congeneric issued promissory notes to Ramon Mojica, which were later assigned to Mever. Corazon Perez partially covered the debt. Mever made some payments to Congeneric but a dispute arose over whether Mever's obligations were fully extinguished. The Court of Appeals found legal compensation had occurred, but the Supreme Court reversed, finding the requirements for legal compensation were not met since Mever was not a creditor of Congeneric at the time of maturity. The Supreme Court reinstated the trial court's ruling that Mever still

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    305 views2 pages

    Perez V Ca

    Uploaded by

    Pauline Quitangon
    This case involves a dispute over payment of promissory notes between Corazon Perez, Mever Films Inc., and Congeneric Development & Finance Corporation. Congeneric issued promissory notes to Ramon Mojica, which were later assigned to Mever. Corazon Perez partially covered the debt. Mever made some payments to Congeneric but a dispute arose over whether Mever's obligations were fully extinguished. The Court of Appeals found legal compensation had occurred, but the Supreme Court reversed, finding the requirements for legal compensation were not met since Mever was not a creditor of Congeneric at the time of maturity. The Supreme Court reinstated the trial court's ruling that Mever still

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Case Digest

    Perez V. Court of Appeals


    GR No. L-56101 February 20, 1984
    Melencio-Herrera, J.:

    A. Parties, Relationship & How matter reach this court:

     Congeneric Development & Finance Corporation is a company engaged in


    "money market" operations. Money market operation is where lenders and borrower
    do not deal directly with each other but through an intermediary in the open market.
     Ramon C. Mojica, bearer No. 049, whom the two bearer promissory notes
    amounting to P320,640.25 were issued.
     Corazon Perez is the petitioner who covered P200,000 of the total debt.
     Mever Films, Inc. is a private respondent, who borrowed P500,000 from
    Congeneric.

    The case is a petition for review on certiorari of a decision of the court of appeals.

    B. Facts

    Congeneric issued two bearer promisory notes to Mojica which mature on August 6, 1974
    and August 13, 1974. On June 5, 1974, Mever borrowed P500,000 from Congeneric which
    mature on August 5, 1974 with 19% interest per annum if not paid on time. Corazon
    covered P200,000 of the total debt with the same terms.

    On August 5, 1974, Mever paid P100,000 to Congeneric. On the same day, Congeneric
    paid Corazon P100,000 plus 19% interest. Congeneric also paid Mojica the interest due.
    On September 9, 1974, Mojica assigned the bills to Mever. Then, Mever surrendered bills
    to Congeneric. Mever then delivered the remaining sum of P79,359.75 to the Sheriff to
    fulfill its debt with Congeneric.

    However, Corazon filed a suit against against Mever to recover the remaining P100,000.
    The Regional Trial Court ordered Mever to pay the said amount together with its interests.
    Court of Appeals reversed and ruled that what Mever delivered to Congeneric is

    1
    considered as legal compensation and thus pursuant to Article 1285 of the New Civil
    Code, all Mever’s obligation had been extinguished by such payment.

    C. Issue:

    Was there legal compensation?

    D. Holdings & Dispositions

    WHEREFORE, the judgment of respondent Appellate Court, dated September 3, 1979 as


    well as its Resolution dated January 16, 1981 is hereby reversed, and that of the then Court
    of First Instance of Manila, Branch XXXI, dated December 27, 1976, hereby reinstated.

    E. Reason

    None, legal compensation was not made because Mever was not a creditor of Congeneric
    at the time of the maturity of the Bills because the latter’s principals were rolled-over and
    hence, it was still being held by Mojica. For legal compensation to exist, the two debts,
    among other requisites, must be due and demandable.

    F. Resulting Legal Rules

    Article 1285 of the New Civil Code was applied in this case.
    The debtor who has consented to the assignment of rights made by a creditor in favor of
    a third person cannot set up against the assignee the compensation
    which would pertain to him against the assignor, unless the assignor was notified by the
    debtor at the time he gave his consent, that he reserved his right to the compensation.

    G. Dictum

    Under this last provision, CORAZON, subject to defenses, could have sued MEVER for
    payment of the full amount of P500,000.00, specially if CONGENERIC should not
    object. It may also be noted that while NCI-0352 was not subject to interest prior to
    August 5, 1974, CONGENERIC obligated itself to pay CORAZON interest on August 5,
    1974 in the amount of P3,483.33, or roughly an interest rate of 19% per annum.

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