GR L 5530; (October, 1953) (Digest)
G.R. No. L-5530; October 26, 1953
Intestate Estate of the deceased Salvador Unson; CONSUELO FRANCA, administratrix-appellee, vs. FERNANDO HIPOLITO, claimant-appellant.
FACTS
Fernando Hipolito filed a claim against the estate of Salvador Unson for P60,000, plus P5,000 in attorney’s fees, based on a promissory note dated November 22, 1944. The administratrix, Consuelo Franca, initially opposed the claim on three grounds: lack of consideration, duress, and that the money delivered was in Japanese military notes with the understanding it would be loaned to guerillas, with any redemption by the U.S. Government to be proportionately shared. The administratrix later withdrew the first two defenses, limiting her opposition to the third defense. The claimant presented witnesses Consolacion Rivas and Carlos Tanseco to prove the loan was in genuine Philippine currency. The trial court dismissed the claim.
ISSUE
Whether the promissory note is supported by a valid consideration, specifically, whether the money loaned was in genuine Philippine currency or in Japanese military notes intended for guerilla investment.
RULING
The Supreme Court affirmed the dismissal of the claim. The Court found the testimony of the claimant’s principal witness, Consolacion Rivas, uncorroborated and flawed with material inconsistencies when compared to the testimony of co-witness Carlos Tanseco. The Court noted Miss Rivas’s unusual interest in the claim, as evidenced by letters she wrote to the administratrix. The Court found it illogical that a substantial loan in genuine Philippine currency would be made in November 1944, a time when the impending defeat of Japan made genuine currency extremely valuable and Japanese notes nearly worthless. The Court gave credence to the defense’s evidence showing that the deceased, Salvador Unson, was actively contributing large sums in Japanese notes to guerilla forces during that period. The Court concluded that the money delivered was in Japanese military notes and was intended for investment with the guerillas, payable only if redeemed by the U.S. Government. Since no such redemption was shown, the claim failed.