First Metro v. Este Del Sol

8/12/2019 First Metro v. Este Del Sol

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Kathryn P. AkmadBulacan State UniversityCollege of Law

SECOND DIVISION

[G.R. No. 141811. November 15, 2001]

FIRST METRO INVESTMENT CORPORATION,petitioner, vs.ESTE E! SO! MO"NTAIN

RESERVE, INC., VA!ENTIN S. AE#, $R., MAN"E! %. SA!IENTES, MA. ROCIO A. E

VEGA, A!E&ANER G. AS"NCION, A!'ERTO(M. !AORES, VICENTE M. E VERA, $R.,

)*+ FE!IPE '. SESE, respondents.

E C I S I O N

E !EON, $R.,J.

Before us is a petition for review on certiorariof the Decision[1]of the Court of Appeals [2]ate Nove!"er

#$ 1%%% in CA&'()( CV No( *++2# reversin, the Decision [+]of the )e,ional -rial Court of .asi, Cit/$ Branch 1*%ate 0une 2$ 1%% in Civil Case No( +%22( Essentiall/$ the Court of Appeals foun an eclare that the fees

provie for in the nerwritin, an Consultanc/ A,ree!ents e3ecute "/ an "etween petitioner 4irst 5etro

Invest!ent Corp( 645IC7 an responent Este el Sol 5ountain )eserve$ Inc( 6Este el Sol7 si!ultaneousl/ with

the 8oan A,ree!ent ate 0anuar/ +1$ 1%9# were !ere su"terfu,es to ca!oufla,e the usurious interest char,e"/ petitioner 45IC(

-he facts of the case are as follows:

It appears that on 0anuar/ +1$ 1%9#$ petitioner 45IC ,rante responent Este el Sol a loan of Seven 5illion

-hree ;unre Ei,ht/&4ive -housan 4ive ;unre .esos 6.9$+#*$*ect to a twent/

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Ke3cessive$ iniuitous$ unconsciona"le an revoltin, to the conscience$L an eclare that in lieu thereof$ the

stipulate one ti!e twent/ 62


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RESPONENTS A AMITTE TE VA!IIT3 OF TE "NERRITING AN CONS"!TANC3

AGREEMENTS.

e] MAE AN ERRONEO"S COMP"TATION ON S"PPOSE!3 AT IS "E TO EAC

PART3 AFTER TE FOREC!OS"RE SA!E,AS SHOWN IN PP. 34-35 OF THE ASSAILEDDECISION, EVEN GRANTING $"ST FOR TE SAE OF ARG"MENT TAT TE APPE!!ATE

CO"RT AS CORRECT IN STIGMATI#ING [i] TE PROVISIONS OF TE !OAN AGREEMENT

TAT REFER TO STIP"!ATE PENA!TIES, !I%"IATE AMAGES AN ATTORNE37S FEES

AS S"PPOSE!3 E&CESSIVE, INI%"ITO"S AN "NCONSCIONA'!E AN REVO!TING TO TE

CONSCIENCE AN [ii] TE "NERRITING, S"PERVISION AN CONS"!TANC3 SERVICES

AGREEMENT AS S"PPOSE!3 MERE S"'TERF"GES TO CAMO"F!AGE TE "S"RIO"S

INTEREST CARGE "PON TE RESPONENT ESTE '3 PETITIONER.

9] REF"SE TO CONSIER TE FACT TAT RESPONENT ESTE, AN T"S TE

INIVI"A! RESPONENTS, ARE STI!! O'!IGATE TO TE PETITIONER.

.etitioner essentiall/ assails the factual finin,s an conclusion of the appellate court that the nerwritin,

an Consultanc/ A,ree!ents were e3ecute to conceal a usurious loan( Inuir/ upon the veracit/ of theappellate courts factual finin,s an conclusion is not the function of this Court for the Supre!e Court is not atrier of facts( Onl/ when the factual finin,s of the trial court an the appellate court are oppose to each other

oes this Court e3ercise its iscretion to re&e3a!ine the factual finin,s of "oth courts an wei,h which$ after

consierin, the recor of the case$ is !ore in accor with law an >ustice(

After a careful an thorou,h review of the recor incluin, the evience auce$ we fin no reason toepart fro! the finin,s of the appellate court(

4irst$ there is no !erit to petitioner 45ICs contention that Central BanF Circular No( %


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45IC to e3ten the loan to responent Este el Sol$ inicatin, an as a!itte "/ petitioner 45ICs e!plo/ees$[+1]that such nerwritin, A,ree!ent is Kpart an parcel of the 8oan A,ree!ent(L[+2]

c7 )esponent Este el Sol was "ille "/ petitioner on 4e"ruar/ 2#$ 1%9# One 5illion -hree ;unre

-hirt/ -housan .esos 6.1$++


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-his Court a,rees with the factual finin,s an conclusion of the appellate court$ to wit:

Je fin the stipulate penalties$ liuiate a!a,es an attorne/s fees$ e3cessive$ iniuitous an unconsciona"le

an revoltin, to the conscience as the/ harl/ allow the "orrower an/ chance of survival in case of efault( An

true enou,h$ ES-E fole up when the appellee e3tra>uiciall/ foreclose on its 6ES-Es7 evelop!ent pro>ectan literall/ close its offices as "oth the appellee an ES-E were at the ti!e holin, office in the sa!e

"uilin,( Accorin,l/$ we hol that 2u,e shall euita"l/ reuce the penalt/ when the principal o"li,ation has "een partl/ or

irre,ularl/ co!plie with "/ the e"tor( Even if there has "een no perfor!ance$ the penalt/ !a/ also "e reuce"/ the courts if it is iniuitous or unconsciona"le(

Art( 2229( 8iuiate a!a,es$ whether intene as an ine!nit/ or a penalt/$ shall "e euita"l/ reuce if the/

are iniuitous or unconsciona"le(

In the case at "ar$ the a!ount of -hree 5illion One ;unre Ei,ht/&Ei,ht -housan Si3 ;unre -hirt/

.esos an Sevent/&4ive Centavos 6.+$1##$@+

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First Metro v. Este Del Sol