G.R. No. 35252; October 21, 1932
THE PHILIPPINE NATIONAL BANK, plaintiff-appellant, vs. UY TENG PIAO, defendant-appellee.
FACTS
The Philippine National Bank (PNB) obtained a judgment against Uy Teng Piao for a sum of money secured by mortgaged properties. After Uy Teng Piao failed to pay, the properties were sold at public auction, with PNB as the highest bidder. PNB later resold the properties and credited Uy Teng Piao with the full resale proceeds. PNB then filed an action to revive the judgment for the remaining balance. Uy Teng Piao claimed as a defense that he had waived his right of redemption over one property in consideration of PNB’s promise, made through its employee Mr. Pecson, to condone the balance of the judgment. The trial court absolved Uy Teng Piao based on this alleged agreement.
ISSUE
Whether Uy Teng Piao validly proved the existence of an agreement whereby PNB condoned the balance of the judgment in consideration for his waiver of the right of redemption.
RULING
No. The Supreme Court reversed the trial court’s decision. The alleged condonation agreement rested solely on the uncorroborated and uncertain testimony of Uy Teng Piao. There was no written evidence of such an agreement in the waiver document. Furthermore, there was no proof that Mr. Pecson had the authority to bind PNB to such a condonation. The waiver was supported by sufficient consideration—PNB’s agreement to credit Uy Teng Piao with the full resale price of the property, which was significantly higher than the auction price. Therefore, PNB was entitled to collect the unpaid balance of the judgment.
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