CREDIT TRANSACTIONS: INTEREST
G.R. No. L-59096 October 11, 1985 PACITA F. REFORMINA an !EIR" OF FRANCI"CO REFORMINA, petitioners, #$. #$. T!E !ONORA%LE &ALERIANO P. TOMOL, 'R., a$ '()e o* t+e Co(rt o* Fr$ Fr$tt In$t In$tan ance ce,, %r %ran anc+ c+ I, I, CE% CE% CIT/ CIT/, "!ELL "!ELL REFIN REFINING ING COMP COMPAN/ AN/ P!IL"., INC., an MIC!AEL, INCORPORATE2, respondents. FACT" This is a a Petition for Review on certiorari of the Resoltion Resoltion of C!I"Ce# $d%e To&ol To&ol for an action for Recover' of Da&a%es for in(r' to Person and )oss of Propert'. On $ne *, +*-, (d%&ent was rendered #' the Cort of !irst instance of Ce# in Civil Civil Case Case No. No. R"++-* R"++-*, , 3 the dispositive dispositive portion of which reads /0ERE!ORE, (d%&ent is here#' rendered in favor of the plainti1s and third part' defendants and a%ainst the defen defendan dants ts and third third part' part' plaint plainti1s i1s as follows: Orde Orderi rin% n% defe defend ndan ants ts and and thir third d part part' ' plainti1s Shell and 2ichael, Incorporated to pa' (ointl' and severall' the followin% persons: 3%4 Plainti1s Pacita and !rancisco Re*or4na the s& of P+5+,678.66 which is the vale of the #oat ! 9 Pacita Ill to%ether with its accessories, shin% %ear and and e;ip&ent &ins P76, P76,66 666. 6.66 66 wh whic ich h is the the val vale e of the the insr insranc ance e recov recover ered ed and the a&on a&ontt of P+6, P+6,66 666. 6.66 66 a &ont &onth h as the the esti esti&at &ated ed &onthl' loss s1ered #' the& as a reslt of the re of 2a' <, +< p to the ti&e the' are actall' paid or alread' the total s& of P5*6,666.66 as of $ne 8, +*- with with legal legal interest interest fro& the lin% of the the co&p co&pla lain intt nti ntill paid paid and and to pa' pa' attor attorne' ne'=s =s fees fees of P>,666 P>,666.66 .66 wit with h costs costs a%ai a%ain nst defe efendan ndants ts and and thir hird part' plainti1s. On appeal to the then Cort of Appeals, the trial cort=s (d%&ent was &odied to reads as follows /0ER /0ERE! E!OR ORE. E. the the (d% (d%&e &ent nt appe appeal aled ed fro& fro& is &odie &odied d sch sch that that defend defendant ants" s" appellants Shell Renin% Co. 3Phils.4, Inc. and and 2ich 2ichae ael, l, Inco Incorp rpor orat ated ed are are here here#' #' ordered to pa' ... The two 3-4 defendants" app appella ellan nts are are also lso dire irected cted to pa' pa'
P+66,666.66 with le%al interests fro& the lin lin% % of the co&pl &plain aint ntil paid aid as co&p co&pen ensa sato tor' r' and and &ora &orall da&a da&a%e %es s and and P8+,666.66 co&pensation for the vale of the lost #oat with legal interest fro& interest fro& the lin% of the co&plaint ntil fll' paid to Pacita acita !.Re*or4na and the heirs of !rancisco Re*or4na. Re*or4na. The lia#ilit' of the two tw o defe defen ndants ants for for an the the awar award ds is solidar'. Petitioners= &otion for the reconsideration of the ;estioned Resoltion havin% #een denied, the' now co&e #efore ?s thro%h the instant petition pra'in% for the settin% asid aside e of the the said said Reso Resol lti tion on and and for for a decl declar arat atio ion n that that the the (d% (d%&e &ent nt in thei theirr favor shold #ear le%al interest at the rate of twelve elve 3+-@ +-@4 perce rcent per per ann ann& prsant to Central 9an Circlar No. 8+< dated $l' -, +*8. I""E 0ow &ch, #' wa' of le%al interest, shold a (d% (d%&e &ent nt de#t de#tor or pa' pa' the the (d% (d%&e &ent nt creditorB /ON le%al interest &eant <@ as provided for nder Article --6 of the Civil Code . /hat ind of (d%&ent is covered nder ?S?R )awB RLING Article --6 of the Civil Code is applica#le in case at #ar. It &st #e noted that the decision herein so%ht to #e eected is one rendered in an Action for Da&a%es for in(r' to persons and loss of propert' and does does not not invo involv lve e an' an' loan loan,, &ch &ch less less for# for#ea eara ranc nces es of an' an' &one &one' ', %ood %oods s or credits. As correctl' ar%ed #' the private respondents, respondents, the law applica#le to the said case is Article --6 of the New Civil Code which reads Art. --6. If the o#li%ation o#li%ation consists in the pa'& pa'&en entt of a s& s& of &one &one' ', and and the the de#tor incrs in dela', the inde&nit' for da&a%es, there #ein% no stiplation to the contrar', shall #e the pa'&ent of interest a%r a%reed pon, and and in the a#s a#senc ence of stiplation, the le%al interest which is si percent per ann&. The a#ove a#ove provisio provision n re&ains re&ains ntoch ntoched ed desp despit ite e the the %ran %rantt of ath athor orit it' ' to the the Central 9an #' Act No. -<>>, as a&ended. To &ae Central 9an Circlar No. 8+< applica#le to an' case other than thos those e spec speci ica call ll' ' prov provid ided ed for for #' the the ?sr' )aw will &ae the sa&e of do#tfl constittionalit' constittionalit' since the 2onetar' 9oard willl #e eerc wil eercisi isin% n% le%isl le%islati ative ve fncti fnctions ons
which was #e'ond the intend&ent of P.D. No. ++<. Central 9an Circlar No. 8+< which provides 9' virte of the athorit' %ranted to it nder Section + of Act -<>>, as a&ended, otherwise nown as the ?sr' )aw the 2onetar' 9oard in its Resoltion No. +<-dated $l' -, +*8, +a$ re$crbe t+at t+e rate o* ntere$t *or t+e loan or forbearance of an 4one, )oo$, or cret$ an t+e rate a77oe in judgments, n t+e ab$ence o* ere$$ contract a$ to $(c+ rate o* ntere$t, $+a77 be te7#e 13: er cent er ann(4. This Circlar shall tae e1ect i&&ediatel'. 3Italics spplied4
The (d%&ents spoen of and referred to are $d%&ents in liti%ations involvin% loans or for#earance of an' =&one', %oods or credits. An' other ind of &onetar' (d%&ent which has nothin% to do with, nor involvin% loans or for#earance of an' &one', %oods or credits does not fall within the covera%e of the said law for it is not within the a&#it of the athorit' %ranted to the Central 9an.
ruizsharmine
