GR 161539; (April, 2009) (Digest)
G.R. No. 161539 , April 24, 2009
International Container Terminal Services, Inc., Petitioner, vs. FGU Insurance Corporation, Hapag-Lloyd, Hapag-Lloyd Phils., Inc., and Desma Cargo Handlers, Inc., Respondents.
FACTS
In a prior Decision dated June 27, 2008, the Supreme Court denied the petition filed by International Container Terminal Services, Inc. (petitioner) and affirmed the Court of Appeals’ Decision and Resolution, which found petitioner liable for the full amount of a lost shipment. The Court denied petitioner’s motion for reconsideration with finality on August 27, 2008. Petitioner subsequently filed a second motion for partial reconsideration, assailing only the award and reckoning date of the 12% interest imposed by the Regional Trial Court (RTC) on its adjudged liability. Petitioner contends that the complaint filed before the RTC is not for loan or forbearance of money but for breach of contract or damages; thus, the applicable interest rate should be 6%, not 12%. Petitioner also argues that the interest should be reckoned from the date the complaint was filed, April 10, 1995, not from January 3, 1995, the date respondent FGU Insurance Corporation paid the insured amount to Republic Asahi Glass Corporation (RAGC).
ISSUE
1. What is the correct legal interest rate to be imposed on the adjudged liability: 12% or 6% per annum?
2. From what date should the legal interest be computed?
RULING
The Supreme Court granted the second motion for partial reconsideration and modified its Decision dated June 27, 2008.
1. On the Interest Rate: The Court held that the claim is for reimbursement of a sum paid by FGU Insurance Corporation to RAGC, not for forbearance of money, goods, or credit. Forbearance refers to a contractual obligation to refrain from requiring repayment of a loan or debt due. Therefore, the applicable interest rate is 6% per annum, not 12%.
2. On the Reckoning Date: The legal interest of 6% per annum shall be computed from the date of filing of the complaint, April 10, 1995, not from January 3, 1995. This is in accordance with the rule that when the demand cannot be established with reasonable certainty, interest shall run from the date of the court’s judgment. The quantification of damages is reasonably ascertained at the time of filing the complaint.
The Court modified its Decision: The rate of interest on the principal amount of ₱1,875,068.88 shall be 6% per annum computed from April 10, 1995, until the finality of this judgment. From the time the judgment becomes final and executory and remains unsatisfied, the amount shall earn interest at 12% per annum until full satisfaction.