G.R. No. L-45159; April 4, 1939
THE GOVERNMENT OF THE PHILIPPINES, plaintiff-appellee, vs. EMILIO MA. DE MORETA, defendant-appellant.

FACTS

The lower court sentenced the defendant, Emilio Ma. de Moreta, to pay the plaintiff, the Government of the Philippines, two sums for separate causes of action (P34,384 and P20,000) plus a penalty of P5,000 for collection expenses and attorney’s fees. The defendant appealed, contesting the amount for the first cause of action, claiming his true obligation was only P34,354, and also contesting the P5,000 penalty.

ISSUE

1. Whether the amount for the first cause of action was computed correctly.
2. Whether the penalty of P5,000 for collection expenses and attorney’s fees was proper under the circumstances.

RULING

1. On the first cause of action: The Court agreed with both parties that a clerical error in addition occurred. The correct amount due was P34,354, not P34,384.
2. On the penalty: The Court reduced the penalty from P5,000 to P2,500. The reduction was based on the following considerations: (a) the two obligations were demanded in a single suit; (b) the defendant admitted his liability and attributed non-payment to financial difficulties, meaning judgment was obtained without difficulty; (c) the stipulation in the contracts included costs within the penalty amount; and (d) analogous precedents, such as Turner vs. Casabar.
The appealed decision was modified accordingly.

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