SUBJECT – Art. 1170 RCBC v. CA and FELIPE LUSTRE (1999) Short version/ Summary: Summary: RCBC fled an action or replevin replevin and damages against against Felipe Lustre on the ground that that he deaulted in his payments payments o 3 PCs issued or installment installment th payments o a !oyota Corolla" !he # PC issued $y Lustre %as recalled or signature" !he su$&ect chec'( ho%ever( %as recalled only ater the amount covered there$y had $een deducted rom Lustre)s account" *t %as su$se+uently su$se+uently re,credited $ac' to Lustre)s account or lac' o signature" RCBC did not notiy Lustre until -. months later %hen it %rote its demand letter to Lustre" SC: Lustre cannot $e held lia$le or damages" rticle --01 o the Civil Code states that those %ho in the perormance o their o$ligations are guilty o delay are lia$le or damages" !he delay in the perormance o the o$ligation( ho%ever( must $e either malicious or negligent" *CB( there is no imputation( much less evidence( that Lustre acted %ith malice or negligence in ailing to sign the chec'" Such omission %as mere inadvertence on the part o Lustre" Facts: Atty. Felipe Lustre purchased a Toyota Corolla from Toyota Shaw, Inc. He made a down payment, and the balance of the purchase price to be paid in 2 e!ual monthly installments. installments. st Lustre thus issued 2 postdated chec"s. The # was dated #$ April #%%#, subse!uent chec"s were dated e&ery #$ th of each succeedin' month. As security, Lustre e(ecuted a contract of chattel mort'a'e o&er the &ehicle. )ara'raph ## thereof pro&ided pro&ided for an acceleration clause statin' that should the mort'a'or default in the payment of any installment, the whole amount remainin' remainin' unpaid shall become due. In addition, the mort'a'or shall be liable for 2*+ of the principal due as li!uidated dama'es. Toyota Toyota Shaw assi'ned assi'ned all its ri'hts and and interests interests in the chattel chattel mort'a'e mort'a'e to C-C. C-C. The rst 22 )/Cs were were encashed encashed and debited by C-C C-C from from Lustre0s Lustre0s account, e(cept e(cept the th )/C dated #$ Au'ust #%%# 1* )/C out of 2 )/Cs, which was unsi'ned. )re&iously, the amount of the * th )/C was debited from Lustre0s account but was later recalled and re3 credited to Lustre0s account. -ecause of the recall, C-C refused to encash the last 2 )/Cs 1pursuant to C-C policy. Lustre was not informed of C-C0s actions. 4n 2# 5anuary #%%6, C-C sent a demand letter to Lustre, demandin' payment of balance of the debt 16 installment payments, includin' li!uidated dama'es. Lustre refused. C-C led an action for reple&in and dama'es a'ainst Lustre. Lustre interposed a counterclaim for dama'es. Prc!d"r!: RTC: /ismissed C-C0s complaint. 4rdered C-C to accept the payment e!ui&alent to the 6 chec"s and to release7cancel the mort'a'e on the car. 4n the counterclaim, C-C ordered to pay Lustre moral dama'es, e(emplary dama'es and attorney0s fees. CA: A8rmed TC.
Iss"!#s: 94: Lustre is liable for dama'es on the 'round of delay in the performance of his obli'ation. $%. &!'d#Rat: Assumin' that Lustre was 'uilty of delay in payment of the &alue of the unsi'ned chec", he cannot be held liable for dama'es. Article ##;$ of the Ci&il Code states that those who in the performance of their obli'ations are 'uilty of delay are liable for dama'es. T! d!'a* n t! +!r,r-anc! , t! '/atn !v!r -"st ! !t!r -a'c"s r n!/'/!nt. ICA-, there is no imputation, much less e&idence, that Lustre acted with malice or ne'li'ence in failin' to si'n the chec". Such omission was mere inad&ertence on the part of Lustre. Toyota salesperson testied that he &eried whether Lustre had si'ned all chec"s and in fact returned 6 or unsi'ned chec"s to him for si'nin'. Lustre si'ned these returned chec"s, and only then did the Toyota salesperon release the car to Lustre. SC noted that C-C did not obered by Lustre, who has been a client of C-C for 2$ years. Lustre also su>ered shame and embarrassment after the case was led as he was a lawyer, married to another lawyer, and "nown to the community of 'olfers. SC also allowed e(emplary dama'es and attorney0s fees.
/i'ested by? A'ee omero
