Delgado v Alonso

G.R. No.19826, March 31, 1923

Facts:
In Nove!er o" the #ear 191$ Alonso %&rchased t'elve %arcels o" land (n the
&n(c(%al(t# o" Goa "ro one )t(c*ne#, %a#(ng the s& o" +1,,--- o" h(s o'n one#
there"or. .h(s %&rchase 'as a%%arentl# ade !# Alonso as an (nvestent/ he e0%ects to
!e a!le to sell the %ro%ert# on advantageo&s ters to Delgado. Alonso (ndeed cla(s
that the %ro%ert# 'as %&rchased !# h( at the (nstance and re1&est o" Delgado, &nder
c(rc&stances that v(rt&all# ade h( the agent o" Delgado (n the %&rchase. 2n
Fe!r&ar# 1, 1918, Alonso conve#ed the sae %ro%ert# to 3&c(ano Delgado. .he deed o"
conve#ance !# 'a# o" ortgage e0ec&ted !# Delgado to sec&re the %a#ent o" the
%&rchase %r(ce, so "ar as ater(al to !e here noted, st(%&lates (n cla&ses A to 4, (ncl&s(ve,
o" %aragra%h 2/ and (n s&!stance the# are as "ollo's: 5A6 .he de!tor7ortgagor
5Delgado6 %ro(ses to %a# to the cred(tor7ortgagee 5Alonso6 the s& o" +1,,--- (n a
s(ngle %a#ent. 586 .o sec&re th(s s& the de!tor creates a ortgage (n "avor o" the
cred(tor on the "o&rteen %arcels o" land descr(!ed (n %aragra%h 1 o" the sae (nstr&ent.
596 )o long as the (nde!tedness s&!s(sts the de!tor o!l(gates h(sel" "or (nterest (n the
ao&nt o" +2,2,-, to !e %a(d (n t'o se(7ann&al (nstallents o" +1,1$, each, 5D6 .he
de!tor has a %er(od o" t'elve #ears "ro the date o" the (nstr&ent '(th(n 'h(ch the
latter a# a*e %a#ent o" the +1,,--- a"oresa(d. F(nall#, (n cla&se 546, (" the de!tor
sho&ld not a*e %a#ent '(th(n t'elve #ears, the cred(tor a#, at the end o" that
%er(od, enter (nto %ossess(on o" the ortgaged %ro%ert#.
D&r(ng the #ear 1919 and therea"ter, Delgado sees to have !een &na!le to
a*e "&rther %a#ent o" (nterest, and 'hen Alonso !egan to %ress h( a!o&t the atter,
reco&rse to legal adv(se 'as had !# the "orer/ and on Fe!r&ar# 3, 192-, th(s act(on 'as
(nst(t&ted !# Delgado (n the 9o&rt o" F(rst Instance o" 9aar(nes )&r.
8# the aended co%la(nt, the %la(nt("" see*s to en"orce the r(ght o" act(on
g(ven (n sect(on 6 o" Act No. 26,, and see*s to o!ta(n a declarat(on o" n&ll(t# as to the
st(%&lat(ons conta(ned (n cla&ses A, 9, and 4 o" the ortgage. .o th(s co%la(nt the
de"endant ans'ered '(th a general den(al/ he alleged that the contract (n 1&est(on had
!een entered (nto !# h( (nnocentl# and (n total (gnorance on h(s %art o" the e0(stence o"
the :s&r# 3a' and, "&rther, that he had !een al(c(o&sl# (nve(gled (nto sa(d contract !#
the %la(nt("".
:%on these %lead(ngs, and &%on cons(derat(on o" the %roo", !oth oral and
doc&entar#, the tr(al ;&dge "o&nd that the ortgage (n 1&est(on 'as (n "act &s&r(o&s,
and he there"ore declared the sae to !e vo(d.
Iss&e:
<hether or not the ortgage (s vo(d on acco&nt o" (t !e(ng &s&r(o&s.
R&l(ng:
=es. A s(%le calc&lat(on sho's that the (nterest agreed to !e %a(d (n cla&se 9
&%on the %&rchase %r(ce o" the land 'h(ch had th&s !een !o&ght !# Delgado 'as at a
rate 'ell a!ove "("teen %er cent& %er ann&. .h(s ortgage there"ore o""ends aga(nst
the %rov(s(ons o" the :s&r# 3a', 'h(ch l((ts the rate that can ord(nar(l# !e sec&red !#
ortgage &%on real %ro%ert# to t'elve %er cent& %er ann& 5Act No. 26,,726.
>ere 'e have a %resent sale at the case %r(ce o" +1,,--- and "or!earance (n
res%ect to the collect(on o" that s& "or an (nde"(n(te %er(od '(th(n the l((ts o" t'elve
#ears, (n cons(derat(on o" an agreeent to %a# (nterest at a &s&r(o&s rate so long as the
(nde!tedness sho&ld s&!s(st. It '(ll !e noted that cred(t 'as not e0tended "or a de"(n(te
t(e, and the de!tor 'as le"t at l(!ert# to %a# o"" the 'hole de!t at an# t(e '(th(n the
t'elve7#ear l((t that he chose. .he ortgage (n 1&est(on !e(ng clearl# &s&r(o&s, the
tr(al ;&dge co(tted no error (n declar(ng that (nstr&ent vo(d/ and th(s,
not'(thstand(ng the "act that the %la(nt("" l((ted h(s %ra#er "or rel(e" to those "eat&res o"
the ortgage 'h(ch 'ere &n"avora!le to h(sel", '(tho&t as*(ng that the 'hole contract
!e ann&lled. It 'as not erroneo&s "or the co&rt, &%on !e(ng a%%ealed to "or rel(e" aga(nst
the &nla'"&l contract, to erad(cate the ev(l root and !ranch, and ore %art(c&larl# as the
de"endant had also as*ed that the ortgage !e ann&lled.