Filinvest Credit Corporation v. Mendez

JR., J.:

This is a petition to review on certiorari the decision of the Intermediate Appellate Court, now Court of Appeals, rendered in AC-G.R. CV No. 63673 affirming in toto the decision of the Court of First Instance of Davao, Branch 6, 16th Judicial District. The factual background of this case, as summarized in the trial court's decision and adopted by the appellate court, is as follows: On August 6, 1974, Ivan Mendez purchased a Ford Cortina from the Davao Motor Sales Company and to secure balance of P49,428.40 plaintiff executed and delivered a promissory note and chattel mortgage in favor of Davao Motor Sales Company. On August 11, 1974, Davao Motor Sales Company assigned to Filinvest Credit Corp., its rights, title and interest in the promissory note and chattel mortgage.

According to the terms of the promissory note, the monthly installments of Pl,373.00 would begin on September 13, 1974, and on or before the 13th day of the month thereafter until August 13, 1977, with interest and such other charges customarily imposed by defendant on transactions of the same nature. It appears that Ivan Mendez failed to pay the February 13, March 13, and April 13, 1976 installments due on the promissory note, Thus, defendant financing company sent written demands to Ivan Mendez to update his account. On May 3, 1976, Ivan Mendez paid the financing company P2,000.00 through Philippine Veteran's Bank Check No. 58166 which was credited to payments for the following months: Month Amount Feb.

1976 P200.49 (full payment) Mar. 1976 1,373.00 (full payment ) Apr. 1976 415.05