GR 127997; (August, 1998) (Digest)
G.R. No. 127997 August 7, 1998
FELIX VILLANUEVA, petitioner, vs. COURT OF APPEALS and ALMARIO GO MANUEL, respondents.
FACTS
In 1991, private respondent Almario Go Manuel filed a civil action for sum of money with damages before the Regional Trial Court of Cebu City against petitioner Felix Villanueva and his wife Melchora. The action involved a check dated June 30, 1991, in the amount of P167,600.00 issued by petitioner in favor of private respondent. The check represented payment for loans obtained by petitioner from private respondent as capital for his mining and fertilizer business. The check was dishonored due to insufficiency of funds. After demand, petitioner failed to make good the check. Private respondent filed a criminal complaint for violation of Batas Pambansa Bilang 22 and the civil complaint for sum of money. Petitioner contended that his principal obligation was only P23,420.00. The trial court rendered a decision in favor of private respondent, ordering petitioner to pay P167,600.00. Both parties appealed to the Court of Appeals. Petitioner sought reversal, maintaining his obligation was only P23,420.00, while private respondent sought interest, attorney’s fees, and damages. The Court of Appeals affirmed the trial court’s decision but modified it by ordering petitioner to additionally pay attorney’s fees and litigation expenses of ten percent of P167,000.00, with the entire obligation to earn interest at six percent per annum from the filing of the complaint.
ISSUE
1. Whether the Court of Appeals erred in not ruling that the five and ten percent interest imposed is not enforceable due to absence of a written stipulation.
2. Whether the Court of Appeals erred in not finding that petitioner is only liable for the amount of P23,420.00.
3. Whether the Court of Appeals erred in not declaring that the Central Bank and Monetary Board has no power or authority to repeal the usury law.
RULING
The Supreme Court denied the petition. It held that its jurisdiction is limited to reviewing errors of law, as findings of fact by the Court of Appeals are deemed conclusive. Petitioner failed to raise issues constituting sufficient grounds to warrant reversal. Regarding legal interest, the Court applied the guidelines from Eastern Shipping Lines, Inc. v. Court of Appeals. Since the principal obligation of P167,600.00 is a loan, it should earn legal interest at the rate of 12% per annum computed from the time the complaint was filed until the finality of the decision. After the decision becomes final and executory, the rate of 12% per annum shall be additionally imposed on the total obligation until payment is satisfied. The decision of the Court of Appeals was AFFIRMED with the MODIFICATION on the rate of legal interest.