Cuaton v. Salud

YNARES-SANTIAGO, J.:

Before the Court is a petition for review on certiorari assailing the August 31, 2001 Decision1 of the Court of Appeals in CA-G.R. CV No. 54715 insofar as it affirmed the Judgment2 of the Regional Trial Court of General Santos City, Branch 35, in SPL. Civil Case No. 359, imposing interest at the rate of 8% to 10% per month on the one-million-peso loan of petitioner. On January 5, 1993, respondent Rebecca Salud, joined by her husband Rolando Salud, instituted a suit for foreclosure of real estate mortgage with damages against petitioner Mansueto Cuaton and his mother, Conchita Cuaton, with the Regional Trial Court of General Santos City, Branch 35, docketed as SPL.

Civil Case No. 359.3 The trial court rendered a decision declaring the mortgage constituted on October 31, 1991 as void, because it was executed by Mansueto Cuaton in favor of Rebecca Salud without expressly stating that he was merely acting as a representative of Conchita Cuaton, in whose name the mortgaged lot was titled. The court ordered petitioner to pay Rebecca Salud, inter alia , the loan secured by the mortgage in the amount of One Million Pesos plus a total P610,000.00 representing interests of 10% and 8% per month for the period February 1992 to August 1992, thus - Original loan P1,000,000.00 10% interest for the month of February 1992 balance only 50,000.00 10% interest for the month of March 1992 100,000.00 10% interest for the month of April 1992 100,000.00 10% interest for the month of May 1992 100,000.00 10% interest for the month of June 1992 100,000.00 8% interest for the month of July 1992 80,000.00 8% interest for the month of August 1992 80,000.00 Total amount as of August 1992