G.R. No. L-551; September 11, 1948
DOMINGO AURRECOECHEA, plaintiff-appellant, vs. KABANKALAN SUGAR CO., INC., defendant-appellee.

FACTS

Plaintiff Domingo Aurrecochea, an administrator of defendant’s estate, had a deposit with defendant corporation. In October 1941, he gave notice to withdraw his deposit, payable in April 1942. Due to the war, this was not acted upon. In October 1943, defendant gave plaintiff a check for P55,957.75, representing the full balance, along with a receipt which plaintiff signed. Plaintiff deposited the check the next day and eventually withdrew the entire amount. Plaintiff later sued to recover his deposit and other claims, alleging he accepted the check and signed the receipt under duress, fearing he would be reported to Japanese military authorities and taken to Fort Santiago if he refused. Defendant presented witnesses testifying that plaintiff had persistently demanded payment of his deposit and had agreed to the payment arrangement.

ISSUE

Whether plaintiff accepted the check and signed the receipt under duress, thereby invalidating the settlement and release of defendant’s obligation.

RULING

No. The Supreme Court affirmed the trial court’s dismissal of the action. The evidence did not support the claim of duress. Plaintiff’s subsequent conduct—depositing the check, opening a bank account, and gradually withdrawing and using the funds—was inconsistent with having been coerced. The alleged threat was vague and not sufficiently compelling to overbear the will of an intelligent and educated man like plaintiff. The trial court’s finding on the witnesses’ credibility, favoring defendant’s version, was upheld. The Court also addressed a jurisdictional issue, noting that the total amount claimed exceeded P50,000, but as the appeal involved questions of fact, jurisdiction properly lay with the Court of Appeals. However, as the case was decided on the merits, the Supreme Court proceeded to affirm the judgment.

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