Professional Documents
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ECE REALTY and of the legal interest shall be subject to the condition "that the courts are vested
with discretion, depending on the equities of each case, on the award of
DEVELOPMENT vs. interest."
HERNANDEZ asked HLURB that EMIR and ECE be ordered to accept his Thus, the rate of interest to be imposed from finality of judgments is now back
payment of the balance of the price of Unit 808, less P120,000, without at 6%, the rate provided in Article 2209 of the Civil Code.
interest; and to pay him damages, attorney’s fees, and appearance fee. If Unit
808 is no longer available, HERNANDEZ asked that EMIR and ECE WHEREFORE, the decision of the CA is AFFIRMED with
reimburse him the amount of P452,551.65 he paid, plus legal interest. MODIFICATION. ECE is hereby ordered to pay HERNANDEZ P452,551.65
representing the total amount he paid to ECE, plus 6% interest per annum
EMIR and ECE sought to dismiss the complaint for lack of cause of action from September 7, 2006 until finality hereof by way of actual and
and alleged that HERNANDEZ unjustifiably refused to accept the turn-over compensatory damages. From finality until full satisfaction, the total amount
of Unit 808 and that he was in arrears in his monthly amortizations. Thus, due now compounded with interest due from September 7, 2006 up to finality,
ECE was compelled to cancel his contract to sell, shall likewise earn interest at 6% per annum until fully paid.
ISSUE:
What is the imposable interest rate on the damages and refund awarded
to HERNANDEZ? 6%
HELD:
Article 2209 of the New Civil Code provides that:
"If the obligation consists in the payment of a sum of money, and the debtor
incurs in delay, the indemnity for damages, there being no stipulation to
the contrary, shall be the payment of the interest agreed upon, and in the
absence of stipulation, the legal interest, which is six per cent per annum."