A. Liabil Liability ity for Intere Interest st Statute: Art. 1896. The agent owes interest on the sums he has applied to his own use from the day on which he did so, and on those which he still owes after the extinguishment of the agency. Mendoza vs Viuda de Goitia Facts: Defendant Encarnacion C. Vda, de Goitia has been duly appointed judicial administratrix of the estate of her deceased husband Benigno Goitia - Benigno Goitia as the representati!e representati!e and attorney- in-fact of the plaintiffs plaintiffs in the joint-account partnership partnership "non as the #ren de $guadas, $guadas, of hich the plaintiff %eonor &ende'ona, &ende'ona, ido of (uan Bautista Goitia, ons )*+ shares orth )*,+++, and the plaintiff Valentina 'aguirre y a'abal ons /0 shares orth /,0++ - rior to )1)2, Benigno Goitia, at that time the manager of the co-partnership, collected the di!idends for the plaintiffs, hich he remitted to them e!ery year. #hat the usual di!idends hich Benigno Goitia forarded to plaintiff %eonor &ende'ona each year ere 23+, and to plaintiff Valentina 'aguirre y a'abal, 0)4 - 5rom )1)2 until his death in $ugust, )104, Benigno Goitia failed to remit the di!idends - 6ome time before his death, more particularly, in (uly, )104, Benigno Goitia, ho as no longer the manager of the said business, recei!e as attorney-in-fact of both plaintiff, the amount of 1+ as di!idend upon plaintiff %eonor &ende'ona7s shares, and 84 upon Valentina 'aguirre y a'abal7s stoc" - During the period from )1)2 to )104, Benigno Goitia collected and recei!ed certain sums as di!idends and profits upon the plaintiffs7s stoc" in the #ren de $guadas in his capacity as repres represen enta tati! ti!e e and and attor attorney ney-- in-fa in-fact ct for for both both of them them,, hich hich he has has neith neither er remitt remitted ed nor nor accounted for to the said plaintiffs - Counsel for both plaintiffs filed their claims ith the committee of claims and appraisal of the estate of Benigno Goitia, and, upon their disalloance, appealed from the committee7s decision by means of the complaints in these to cases Issue: WoN an WoN an agent is liable for the interest oing to his principal after his death or after the extinguishment of the agency Held: es! Art. 1896. The agent owes interest on the sums he has applied to his own use from the day on which he did so, and on those which he still owes after the extinguishment of the agency. It appears that Ruperto Santos assured assured the court that the dividends for the period from 1915 to 1926 have been distributed among the shareholders, shareholders, and that the late Benigno Goitia received the dividends due on the shares pertaining to eonor !ende"ona and #alentina I"aguirre, deducting them from the total distribution$ In vie% of these data, the court belo% reached the conclusion, on the basis of the dividends received b& partner Ramon Salinas, that the attorne&'in'fact Benigno Goitia received for the plainti(s' appellees, respectivel&, respectivel&, the amounts of )1*,1+ and )5$256, including the dividends for 1926, or )9 for eonor !ende"ona, and )*6 for #alentina I"aguirre$
