Levy Hermanos Vs. Pedro Paterno

G. R. no. L – 5515

Levy Hermanos Vs. Pedro Paterno

Facts:

1.    Pedro Paterno (defendant) executed a document in favor of Levy Hermanos (plaintiff), indicating that a balance of P6,177.35 will be payable in partial payments.

2.     The defendant made several payments and later claimed to establish the installment of P30.00 per month payment.

3.    The plaintiff disagreed and brought suit and asked that he should be paid the sum of P5,862.35 (unpaid balance) or that a period be specified within which he should pay the same, in case the court should deem such manner of payment more equitable.

4.    During the trial it was agreed by the parties that the sum which the defendant owed the plaintiff was P5,317.35

5.    In view of the evidence adduced during the trial, a monthly payment of P200 would be reasonable compliance with the agreement to pay the debt in installment. The payment will be rendered on or before the 15^th of each month.

6.    The defendant appealed that:

a.    The obligation is one of payment by installment, its fulfillment cannot be required immediately;

b.    No fixed day was specified for its fulfillment;

c.    Payment is undetermined or was not fixed by parties when they executed the contract.

ISSUE:

            Whether or not the defendant should pay the plaintiff according to the period fixed by court.

HELD:

            Yes. The trial court acted in accordance with the law in exercising said power by fixing the duration of the period on the basis that the payment of the debt should be made at the rate of P200.00 a month.

There was no abuse of judicial discretion in fixing such a rate, considering the importance of the obligatin and the absence of any stipulation of the interest in favor of the creditor.