Scc-Cfi Vs Arsenio A Buslon

Republic of the Philippines
MUNICIPAL TRIAL COURT IN CITIES

7th Judicial Region
Branch 2
City of Tagbilaran
CEBU CFI COMMUNITY COOPERATIVE,

Represented by its General manager
GUADALUPE R. ROLLAN
Plaintiff,
SMALL CLAIMS
-versus- Case No. 2550-TAGB.
For:
ARSENIO A. BUSLON COLLECTION OF SUM OF
Defendant. MONEY
x--------------------------/
DECISION
Plaintiff filed this case on March 16, 2022 against the defendant praying
that judgment be rendered directing defendant to pay the plaintiff the amount of
Php145,198.46 with an interest rate at 24% per annum from March 15, 2022 until
fully paid.
Per Return On Summons, Summons together with the Notice of Hearing

were personally served upon defendant on April 11, 2022.
The Complaint alleges that plaintiff is a juridical person, duly established

by virtue of the laws of the Republic of the Philippines which holds office at
Upper Calceta St., Cogon District, Tagbilaran City, while defendant Arsenio A.
Buslon is a resident of Poblacion, Sierra-Bullones, Bohol
In the promissory note dated November 5, 2010, defendant indebted

himself to the plaintiff in the amount of Php50,000.00. As of February 21, 2022,
plaintiff alleged, among others, that defendant’s obligation is broken down as
follows as per loan computation slip:
Principal Amount 35,448.97

Interest Due 72,317.50
Penalty 30,517.78
Attorney’s Fees 6,914.21
TOTAL AMOUNT DUE P145,198.46
In the scheduled hearing today, plaintiff’s representative Stephanie J.

Beldad is present. The defendant Arsenio A. Buslon is accompanied by his friend
Aurelia Suarez.
COURT FINDINGS
Defendant indebted himself in favor of the plaintiff in the amount of

P50,000 which is evidenced by a promissory note dated November 5, 2010.
Defendant has not fully paid his obligation. A demand letter dated June 11, 2021
was addressed to the defendant but there is no proof that said demand letter was
1
received by him.
The Court finds that when the amount of P50,000 was loaned, only P39,835
was received by the defendant. The rest went to the following accounts:
1. Filing Fees P 500

2. Service Fees 1,750
3. Share Capital 5,000
4. A/P - CLPP 600
5. General Assembly Fund 120
6. Entrance Fees 100
7. Health Care Fund 1,200
8. Dental Fund 180
9. A/P - GADDI 260
10. A/P - Fire Aid 100
11. A/P CFI Protec-Fam 150
12. A/P GSIS Acc. Ins. 105
13. A/P Coop Assistance 100
Total P10,165
The Court likewise finds that the defendant made a substantial payment on
October 5, 2016 in the amount of P45,265.65. Prior to 2016, defendant also made
partial payment as stated by plaintiff’s representative. Defendant had already paid
for more than the net proceeds of his loan.
Defendant has no means to pay as he is already about 72 years old. He has

been jobless. He worked as a carpenter before. Nobody hired him anymore as he is
already weak. He has failing eyesight and partially deaf. He was not able to retire
in 2015, since he lacked one (1) year in GSIS contributions. The amount he paid in
2016 was taken from his leave credits. His wife left him due to poverty. He was
ejected because the owner of the land where his house was built was sold. As he is
already homeless, he stays with his friend, Florito Suarez in Sto. Rosario,
Inabanga, Bohol. His companion, Aurelia Suarez is the wife of his friend, Florito
Suarez. Aurelia Suarez narrated that since the defendant had nowhere to go, her
family decided to adopt him in their home. They take it as their responsibility to
feed the defendant and give him clothes. Unfortunately, during typhoon Odette,
their house was destroyed. Her family and the defendant are now living in a
makeshift house. Defendant stated that as a Senior Citizen, he receives a monthly
allowance of P500 from the government. He promised to give this amount to the
plaintiff until his loan is fully paid.
The promissory note bears an interest rate of 24% per annum or 2%

per month. In case of default, all other installments shall immediately
become due and payable and a fine of 1.5% per month is charged on the
defaulted amount. Attorney’s fees of 5% on the amount due is likewise
imposed. Article 1229 of the Civil Code states:
Art. 1229. The judge shall equitably reduce the penalty when the principal
obligation has been partly or irregularly complied with by the debtor. Even
if there has been no performance, the penalty may also be reduced by the
2
courts if it is iniquitous or unconscionable.
In exercising this power to determine what is iniquitous and

unconscionable, courts must consider the circumstances of each case since
what may be iniquitous and unconscionable in one may be totally just and
equitable in another.
The stipulated interest rate of 2% per month or 24% per annum is

reasonable. However, with the imposition of the fine of 1.5% per month the
interest is increased to 3.5% per month or 42% per annum. In Ruiz v. Court
of Appeals, the Supreme Court declared a 3% monthly interest imposed on
four separate loans to be excessive and imposed the legal interest instead.
Thus, the interests in the amount of P72,317.50 and penalties in the

amount of P30,517.78 are deleted. This is apt in the light of the Supreme
Court decision in Medel v. Court of Appeals, as well as in Castro v. Tan
where the Supreme Court said:
“[T]he imposition of an unconscionable rate of interest on a money debt,

even if knowingly and voluntarily assumed, is immoral and unjust. It is
tantamount to a repugnant spoliation and an iniquitous deprivation of
property, repulsive to the common sense of man. It has no support in law,
in principles of justice, or in the human conscience nor is there any reason
whatsoever which may justify such imposition as righteous and as one that
may be sustained within the sphere of public or private morals”.
The general rule is that attorney's fees cannot be recovered as part of

damages because of the policy that no premium should be placed on the
right to litigate. They are not to be awarded every time a party wins a suit.
Thus, the remaining obligation owed by the defendant is P35,448.97

plus legal interest of 6% per annum from the time the plaintiff filed this
statement of claim on March 16, 2022 until his debt is fully paid.
It is likewise equitable and just for the defendant to reimburse the

plaintiff of the filing fee expenses in the amount of P3,230 incurred in the
instant case considering that there is proof of these expenses, and this case
could not have been filed had defendant not failed to pay his indebtedness.
WHEREFORE, Decision is hereby rendered in favor of plaintiff

CEBU CFI Community Cooperative represented by its General Manager
Guadalupe R. Rollan and against defendant Arsenio A. Buslon to pay
1. PESOS: THIRTY FIVE THOUSAND FOUR HUNDRED FORTY

EIGHT & 97/100 (Php35,448.97) plus legal interest of 6% per annum
from the filing of the statement of claim on March 16, 2022 until fully
paid; and
2. Reimburse plaintiff filing fee expenses in the amount of P3,230.
3
Any unspent sheriff deposit is ordered returned to the plaintiff subject
to accounting and auditing procedures.
SO ORDERED.
Given in Chambers this 26th day of April 2022 in the City of

Tagbilaran, Philippines.
ANGIE M. UCAT-LOGARTA
Presiding Judge

Scc-Cfi Vs Arsenio A Buslon

Uploaded by

Copyright:

Available Formats

Scc-Cfi Vs Arsenio A Buslon

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Scc-Cfi Vs Arsenio A Buslon

Uploaded by

Copyright:

Available Formats

Republic of the Philippines

MUNICIPAL TRIAL COURT IN CITIES

CEBU CFI COMMUNITY COOPERATIVE,

Per Return On Summons, Summons together with the Notice of Hearing

The Complaint alleges that plaintiff is a juridical person, duly established

In the promissory note dated November 5, 2010, defendant indebted

Principal Amount 35,448.97

In the scheduled hearing today, plaintiff’s representative Stephanie J.

Defendant indebted himself in favor of the plaintiff in the amount of

1. Filing Fees P 500

Defendant has no means to pay as he is already about 72 years old. He has

The promissory note bears an interest rate of 24% per annum or 2%

In exercising this power to determine what is iniquitous and

The stipulated interest rate of 2% per month or 24% per annum is

Thus, the interests in the amount of P72,317.50 and penalties in the

“[T]he imposition of an unconscionable rate of interest on a money debt,

The general rule is that attorney's fees cannot be recovered as part of

Thus, the remaining obligation owed by the defendant is P35,448.97

It is likewise equitable and just for the defendant to reimburse the

WHEREFORE, Decision is hereby rendered in favor of plaintiff

1. PESOS: THIRTY FIVE THOUSAND FOUR HUNDRED FORTY

2. Reimburse plaintiff filing fee expenses in the amount of P3,230.

Given in Chambers this 26th day of April 2022 in the City of

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.