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Del Carmen v. Sabardo

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Del Carmen v.

Sabardo
G.R. No. 181723. August 11, 2014
PERALTA, J.:

FACTS: Sometime in 1961, the spouses Toribio and Eufrocina Suico (Suico spouses), along
with several business partners, entered into a business venture by establishing a rice and com
mill at Mandaue City, Cebu. As part of their capital, they obtained a loan from the Development
Bank of the Philippines (DBP), and to secure the said loan, four parcels of land owned by the
Suico spouses, denominated as Lots 506, 512, 513 and 514, and another lot owned by their
business partner, Juliana Del Rosario, were mortgaged. Subsequently, the Suico spouses and
their business partners failed to pay their loan obligations forcing DBP to foreclose the mortgage.
After the Suico spouses and their partners failed to redeem the foreclosed properties, DBP
consolidated its ownership over the same. Nonetheless, DBP later allowed the Suico spouses and
Reginald and Beatriz Flores (Flores spouses), as substitutes for Juliana Del Rosario, to
repurchase the subject lots by way of a conditional sale for the sum of ₱240,571.00. The Suico
and Flores spouses were able to pay the downpayment and the first monthly amortization, but no
monthly installments were made thereafter. Threatened with the cancellation of the conditional
sale, the Suico and Flores spouses sold their rights over the said properties to herein respondents
Restituto and Mima Sabordo, subject to the condition that the latter shall pay the balance of the
sale price. On September 3, 1974, respondents and the Suico and Flores spouses executed a
supplemental agreement whereby they affirmed that what was actually sold to respondents were
Lots 512 and 513, while Lots 506 and 514 were given to them as usufructuaries. DBP approved
the sale of rights of the Suico and Flores spouses in favor of herein respondents. Subsequently,
respondents were able to repurchase the foreclosed properties of the Suico and Flores spouses.
On September 13, 1976, respondent Restituto Sabordo (Restituto) filed with the then Court of
First Instance of Negros Occidental an original action for declaratory relief with damages and
prayer for a writ of preliminary injunction raising the issue of whether or not the Suico spouses
have the right to recover from respondents Lots 506 and 514.

ISSUE: Whether the consignation which she and her co-heirs made was a judicial deposit based
on a final judgment and, as such, does not require compliance with the requirements of Article
1256 of the New Civil Code

RULING: The petition lacks merit. Under Article 1256, the only instances where prior tender of
payment is excused are: (1) when the creditor is absent or unknown, or does not appear at the
place of payment; (2) when the creditor is incapacitated to receive the payment at the time it is
due; (3) when, without just cause, the creditor refuses to give a receipt; (4) when two or more
persons claim the same right to collect; and (5) when the title of the obligation has been lost.
None of these instances are present in the instant case. Hence, the fact that the subject lots are in
danger of being foreclosed does not excuse petitioner and her co-heirs from tendering payment to
respondents, as directed by the court.

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