Soriano V People Soriano V People
Soriano V People Soriano V People
11. “People” contends that Alagao’s loan is only P40,000 not P51,713, Overall Ruling
that she only owns 154 sacks of the 398, and the amount of the 64 The SC determined if compensation was proper by applying Article
sacks should be P13,765.95. 1279 of the Civil Code:
First, petitioner and Alagao are debtors and creditors of each other. Soriano
III. Issue/s owes P85,607 for the value of the corn grains delivered to her by Alagao
1. W/N the legal compensation is proper? PARTLY YES. while the latter owes Soriano P51,730 by virtue of a loan. Second, both
debts consist in a sum of money. Third, both debts are due. Upon delivery of
IV. Holding/s the 398 sacks to Soriano, she was under the obligation to pay for the value
thereof as buyer. As to Alagao’s debt, though it was not yet due in when she
Issue #1 delivered the 398 sacks of corn grains to petitioner, it eventually became
PARTLY YES, compensation is a mode of extinguishing to the concurrent due at the time of trial of the instant case. Fourth, both debts are liquidated
amount, the debts of persons who in their own right are creditors and debtors and demandable as the amount is known or is determinable by inspection of
of each other. However, the ¼ share in the harvest due to the petitioner is still in the terms and conditions of relevant documents. There is no dispute that the
dispute as it was not yet liquidated. value of the 398 sacks of corn grains is P85,607. And lastly, neither of the
Petitioner’s Arguments Court’s Rebuttals debts are subject of a controversy commenced by a third person. As to
• Based on Soriano’s • SC agreed that Soriano’s Soriano’s P85,607 debt representing the 398 sacks of corn grains, the
computation2, since Alagao is indebtedness is P30,877 alleged other owners have not commenced any action to protect their claim
indebted in the amount of • With respect to the ¼ share in over it.
P43,930, deducting her harvests due petitioner, it is not Since all requisites of compensation in Article 1279 is present, the SC
indebtedness of P74,807 to capable of determination as it applied Article 1290 of the Civil Code and based on its computation (see
Alagao, she should only be cannot be considered legal Additional Notes)3, and found that Soriano’s civil liability is P30,887.
indebted in the amount of compensation nor was it With respect to the ¼ share in harvests due petitioner, it is not capable
P30,877 liquidated. of determination as it cannot be considered legal compensation nor was it
• CA failed to consider Alagao’s liquidated.
obligation to deliver to her ¼ of
every harvest, and her ¼ share in
the harvest amounted to 57,200
for four harvests and must set V. Law or Doctrine Applied
off. Thus, it is Alagao who is
indebted to Soriano the amount ARTICLE 1279 OF THE CIVIL CODE
of P26,323 (57,200-30,877) Article 1279. In order that compensation may be proper, it is necessary:
(1) That each one of the obligors be bound principally, and that he be at the same
time a principal creditor of the other;
(2) That both debts consist in a sum of money, or if the things due are consumable,
they be of the same kind, and also of the same quality if the latter has been stated;
(5) That over neither of them there be any retention or controversy, commenced by
third persons and communicated in due time to the debtor.
VI. Disposition
WHEREFORE, the May 19, 2005 Decision and January 11, 2008
Resolution of the Court of Appeals in CA-G.R. CR No. 23108 are hereby
AFFIRMED with MODIFICATION. Petitioner Adelaida Soriano is hereby
ordered to pay P30,877 as payment for the remaining balance of the cash VII. Random Facts
value of the 398 sacks of corn grains, plus legal interest at the rate of 6% per
• Ponente: Villarama, Jr., J.
annum computed from finality of this Decision until its full satisfaction.
No pronouncement as to costs.
SO ORDERED.
• 2
SORIANO CONTENDS THAT THE COMPENSATION SHOULD
BE AS FOLLOWS: