HSBC LTD. STAFF RETIREMENT PLAN (NOW HSBC RETIREMENT TRUST FUND, INC.), Petitioner v.

SPOUSES BIENVENIDO AND EDITHA BROQUEZA, Respondents.

G.R. No. 178610 | November 17, 2010 | Carpio, J.
IssWaga
Law 101 Obligations and Contracts
Grp. 3
FACTS
RESPs Gerong and Editha Broqueza are employees of HSBC. There are also members of
respondent HSBC Ltd. Staff Retirement Plan.
Editha obtained a car loan (P 175, 000), an appliance laon (P 24,000). Gerong applied and
was granted an emergency loan (P 35,780).
Both loans made by Editha and Gerong are paid through automatic salary deduction
A labor dispute arose and majority of employees were terminated, including RESPs. RESPs filed
for illegal dismissal in the NLRC.
Because of their dismissal, the RESPs were not able to pay the monthly amortizations of their
loans.
HSBCL-SRP filed a civil case against Spouses Broqueza and against Gerong. Both civil actions
for recovery and collection of sums of money.
Makati MeTC ruled in favor of HSBCL-SRP.
o Gerong and Editha are no longer employees of HSBC, hence loss of continued benefits
under their retirement plans. Thus, they are no longer entitled to the loans secured by their
respective retirement plans, hence reduced to unsecured and pure civil obligations.
Hence these loans are immediately demandable.
Broquezas appealed in the RTC
o Initially denied but reconsidered in deciding the case. RTC affirmed MeTCs decision in
toto.
Petition for review in CA
o Reversed decision of RTC. CA ruled that HSBCL-SRPs complaints for recovery of sum of
money are premature as the loan obligations have not yet matured.
HSBCL-SRP filed a motion for reconsideration (CA denied for lack of merit). HSBC withdrew its
petition against Geron because she settled her obligations.
ISSUES/HELD
WoN the CA erred in reversing the MeTC and RTC decision that HSBCL-SRP may demand for
recovery and collection of sums of money from Spouses Broqueza. YES.
RATIO
We affirm the findings of the MeTC and RTC that there is no date of payment indicated in the
Promissory Notes, that HSBCL-SRP are entitled to demand immediate payment.
Article 1179 CC applies. Spouses Broquezas obligation to pay HSBCL-SRP is a pure obligation.
HSBCL-SRP can immediately demand payment of the loans at anytime because the obligation
to pay has no period. The payroll deduction is merely a convenient mode of payment and not
the sole source of payment for the loans. HSBCL-SRP never agreed that the loans will be paid
only through salary deductions.