PNB V Rocamora
PNB V Rocamora
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* SECOND DIVISION.
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BRION, J.:
We resolve in this petition for review on certiorari1 the
legal propriety of the deficiency judgment that the
petitioner Philippine National Bank (PNB) seeks against
the respondents—the spouses Agustin and Pilar Rocamora
(spouses Rocamora).
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399
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4 Id., p. 64.
400
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401
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The Petition
“It is now clear that from March 17, 1980 [the effectivity date
of Presidential Decree No. 1684 allowing the increase in the
stipulated rate of interest], escalation clauses, to be valid,
should specifically provide: (1) that there can be an
increase in in-
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403
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the other costs at the time of the sale.14 Thus, the amount
of the obligation prior to foreclosure and the proceeds of the
foreclosure are material in a claim for deficiency.
In this case, both the RTC and the CA found that PNB
failed to prove the claimed deficiency; its own testimonial
and documentary evidence in fact contradicted one another.
The PNB alleged that the spouses Rocamora’s obligation at
the time of foreclosure (September 19, 1990) amounted to
P250,812.10, yet its own documentary evidence15 showed
that, as of that date, the total obligation was only
P206,664.34; the
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13 We also stated that when the law intends to foreclose the right of a
creditor to sue for any deficiency resulting from a foreclosure of security
given to guarantee an obligation, it so expressly provides such as with
respect to the sale of the thing pledged (see Article 2115 of the Civil Code)
and foreclosure of chattel mortgage on personal property sold on
installment basis (see Article 1484, par. 3 of the Civil Code); Superlines
Transportation Company v. ICC Leasing and Financing Corporation, G.R.
No. 150673, February 28, 2003, 398 SCRA 508.
14 See PNB v. Court of Appeals, G.R. No. 121739, June 14, 1999, 308
SCRA 229; and Development Bank of the Philippines v. Vda. De Moll, G.R.
No. L-25807, January 31, 1972, 43 SCRA 82.
15 Statement of Account dated October 23, 1996; Records, p. 269.
406
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407
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19 Ibid.
20 PNB v. Court of Appeals and Spouses Basco, G.R. No. 109563, July
9, 1996, 258 SCRA 549, citing Banco Filipino, supra note 12.
21 Floirendo v. Metropolitan Bank and Trust Company, G.R. No.
148325, September 3, 2007, 532 SCRA 43.
22 The contract must bind both contracting parties; its validity or
compliance cannot be left to the will of one of them.
23 G.R. No. 88880, April 30, 1991, 196 SCRA 536.
408
“In order that obligations arising from contracts may have the
force of law between the parties, there must be mutuality between
the parties based on their essential equality. A contract
containing a condition which makes its fulfillment dependent
exclusively upon the uncontrolled will of one of the contracting
parties, is void. Hence, even assuming that the P1.8 million
loan agreement between the PNB and private respondent
gave the PNB a license (although in fact there was none) to
increase the interest rate at will during the term of the
loan, that license would have been null and void for being
violative of the principle of mutuality essential in
contracts. It would have invested the loan agreement with the
character of a contract of adhesion, where the parties do not
bargain on equal footing, the weaker party’s (the debtor)
participation being reduced to the alternative “to take it or leave
it.” Such a contract is a veritable trap for the weaker party whom
the courts of justice must protect against abuse and imposition.”
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409
rates were increased from the agreed 12% per annum rate
to 42%. We held:
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27 Ibid.
410
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411
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412
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