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Civil Law; Interest Rates; The general rule is that the applicable
rate of interest shall be computed in accordance with the stipulation
of the parties. Absent any stipulation, the applicable rate of interest
shall be 12% per annum when the obligation arises out of a loan or
a forbearance of money, goods or credits. In other cases, it shall be
six percent (6%).Anent the interest rate, the general rule is that
the applicable rate of interest shall be computed in accordance
with the stipulation of the parties. Absent any stipulation, the
applicable rate of interest shall be 12% per annum when the
obligation arises out of a loan or a forbearance of money, goods or
credits. In other cases, it shall be six percent (6%). In this case, the
parties did not stipulate as to the applicable rate of interest. The
only question remaining therefore is whether the 6% as provided
under Article 2209 of the Civil Code, or 12% under Central Bank
Circular No. 416, is due.
Same; Same; The phrase forbearance of money, goods or
credits is meant to have a separate meaning from a loan, otherwise
there would have been no need to add that phrase as a loan is
already sufficiently defined in the Civil Code.In Crismina
Garments, Inc. v. Court of Appeals, 304 SCRA 356 (1999),
forbearance was defined as a contractual obligation of lender or
creditor to refrain during a given period of time, from requiring the
borrower or debtor to repay a loan or debt then due and payable.
This definition describes a loan where a debtor is given a period
within which to pay a loan or debt.
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* FIRST DIVISION.
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DEL CASTILLO,J.:
The only issue posed before us is the propriety of the
imposition of interest and attorneys fees.
Assailed in this Petition for Review1 filed under Rule 45
of the Rules of Court is the May 12, 2006 Decision2 of the
Court
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1 Rollo, pp. 11-18.
2 CA Rollo, pp. 82-104; penned by Associate Justice Jose L. Sabio, Jr.
and concurred in by Associate Justices Rosalinda Asuncion-Vicente and
Arturo G. Tayag.
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3 Id., at p. 103.
4 Id., at p. 118.
98
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6 Id.
99
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7 Id., at p. 11.
8 See letter dated October 13, 2000; id., at p. 13.
9 See letter dated October 20, 2000; id., at p. 22.
10 Id., at pp. 2-7.
11 Id., at p. 6.
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12 Id., at pp. 18-20.
13 Id., at pp. 40-42.
14 Id., at p. 40.
15 Id., at pp. 80-81.
16 Id., at p. 81.
17 See Order dated July 30, 2003; id., at p. 120.
18 See Order dated November 21, 2003; id., at p. 181.
19 Id., at pp. 253-257; penned by Judge Benjamin T. Antonio.
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20 Id., at p. 256.
21 Id.
22 Id., at pp. 256-257.
23 Id., at p. 258.
24 CA Rollo, p. 82.
25 Id., at p. 98.
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26 Id., at pp. 100-101.
27 Id., at p. 102.
28 Id., at p. 103.
29 Id.
103
Our Ruling
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30 P1,500,000 on October 1, 1993; P1,500,000 on April 14, 1994;
P300,000 on October 7, 1998 and P200,000 on November 2, 1998; see
records, p. 10.
31 Crismina Garments, Inc. v. Court of Appeals, 363 Phil. 701, 703;
304 SCRA 356, 358 (1999).
32 Id.
105
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33 Id., at p. 709. Emphasis supplied.
34 Article 1933 of the Civil Code provides:
Art. 1933.By the contract of loan, one of the parties delivers to
another, either something not consumable so that the latter may use the
same for a certain time and return it, in which case the contract is called
a commodatum; or money or other consumable thing, upon the condition
that the same amount of the same kind and quality shall be paid, in
which case the contract is simply called a loan or mutuum.
Commodatum is essentially gratuitous.
Simple loan may be gratuitous or with a stipulation to pay interest.
In commodatum the bailor retains the ownership of the thing loaned,
while in simple loan, ownership passes to the borrower.
106
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107
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37 Eastern Shipping Lines, Inc. v. Court of Appeals, supra note 35 at
pp. 95-97. Emphasis supplied.
108
x x x x
(2)When the defendants act or omission has compelled the
plaintiff to litigate with third persons or to incur expenses to protect
his interest;
xxxx
(11)In any other case where the court deems it just and
equitable that attorneys fees and expenses of litigation should be
recovered.
In all cases, the attorneys fees and expenses of litigation must be
reasonable.
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38 Id.
39 223 Phil. 472; 139 SCRA 260 (1985).
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