1. Tan v. Valdehueza, 66 SCRA 61, G.R. No. L-38745, August 6, 1975.
Plaintiff was the highest bidder in the public auction sale of a parcel of land which is the subject of the first cause of action. Defendants Arador and Rediculo Valdehueva executed two documents of deed of pacto de retro sale with right to repurchase in favor of the plaintiff of two portions of a parcel of land described in the second cause of action. This was not registered in the Register of Deeds. After the execution of the DOS in the second cause of action, the defendants remained in the possession of the land, land, taxes were paid by them. them. There was a civil case instituted by Tan against Valdehuezas to enjoin them from entering the parcel of of land and gathering nuts but this was was dismissed dismissed for failure failure to seek seek immediate immediate trial. trial. TC declares Tan the absolute owner of the property in the first cause of action and ordered defendants to pay plaintiff the amount of P1,200 with legal interest of 6%. With regard to the land in the second cause of action, Valdehuezas were ordered to pay the amount of P300 with legal interest of 6% Valdehuezas appealed, saying that the TC erred in making a finding on the second cause of action that the transactions were a simple loan instead of an equitable mortgage.
Issues: 1. Was the first cause of action barred by the principle of res judicata? No 2. IS the transaction regarding the land in the second cause of action a simple loan or an equitable mortgage? It was an equitable mortgage. 3. Should the Valdehuezas pay the interest? No Ratio: 3. No interest shall be due unless it has been expressly stipulated in writing.
