G.R. No. L-5861, January 28, 1911
ESTEBAN FABROS, plaintiff-appellant, vs. JUAN VILLA AGUSTIN and JUAN TABLIGA, defendants-appellees.

FACTS

Esteban Fabros filed an action to redeem a piece of land that was sold at public auction to Juan Tabliga due to a judgment against Tomas Arenas and Fabros. Fabros, as a mortgage creditor of Arenas, sought to redeem the land within the statutory 12-month redemption period. He made two offers to Tabliga to pay the redemption price (the purchase price plus interest), but Tabliga refused both offers. The Court of First Instance of Tarlac granted Fabros the right to redeem but ordered him to pay: (1) 12% interest per annum on the purchase price up to the date of his offer to redeem, and (2) 6% interest per annum from the date of that offer until actual redemption. Fabros appealed, contesting the denial of his claim for annual damages of P1,000 for lost produce and the imposition of the additional 6% interest after his offer.

ISSUE

1. Whether the trial court erred in denying Fabros’ claim for damages.
2. Whether the trial court erred in ordering Fabros to pay 6% interest per annum from the date of his offer to redeem.

RULING

1. On the claim for damages: The trial court did not err. The existence and amount of damages must be proven. The court found Fabros’ testimony on the alleged P1,000 annual loss from the land’s produce unsatisfactory and insufficient. The defendants had denied the allegations in their answer, so the facts were not admitted. Sections 93 and 126 of the Code of Civil Procedure cited by Fabros were inapplicable as there was an answer and a contested trial.

2. On the payment of 6% interest after the offer: The trial court erred. Under Section 465 of the Code of Civil Procedure, a redemptioner must pay the purchase price plus 1% per month interest up to the time of redemption. Following the doctrine in Martinez v. Campbell, when a redemptioner exercises the right within the legal period and makes a proper offer/tender of the amount due, it is neither reasonable nor just to require payment of interest after such offer if the purchaser unreasonably refuses acceptance. Articles 1176 and 1178 of the Civil Code support this by releasing a debtor from further liability upon a valid tender and subsequent judicial deposit if the creditor refuses without cause.

DISPOSITIVE PORTION:
The judgment is AFFIRMED insofar as it orders payment of 12% interest per annum up to the date of Fabros’ offer to redeem. It is REVERSED insofar as it orders payment of 6% interest per annum from the date of that offer. No costs in this instance.