Biala vs. CA (G.R. No. 43503; October 31, 1990) - 2.
- 2.) Biala was unreliable for the inconsistency between her
FACTS:
- Maria Lee is the creditor of Leonor Biala who filed in CFI of
Pangasinan for recovery of the latter’s indebtedness of P31, 338.76
- 15 causes of action were filed as evidenced by documents (1 Deed
of Real Estate Mortgage for 2 residential houses, 2 Deed of Real
Estate Mortgage for the Lot in Dagupan where the houses stand, and
12 promissory notes)
- Biala contended that either the debts were already settled or she has
not received it at all or even if not yet settled, already barred by
prescription
- CFI: dismissed all causes of action due to prescription
- CA: reversed CFI, thus, petition for certiorari to SC
ISSUE: 1.) WON the action is barred by laches?
2.) WON the obligations were extinguished thru payment?
HELD: 1.) No. 2.) No. The Court affirmed CA.
RATIO:
- 1.) Laches is the failure or neglect, for an unreasonable length of
time to do that which, by exercising due diligence could or should
have been done earlier; it is negligence or omission to assert a
right within a reasonable time warranting a presumption that the
party entitled to assert it either has abandoned or declined to assert it.
- Laches has 4 elements and the case at bar has the 1st element only
- Lapse of 9 years within which Lee had not instituted her suit is
not to be considered as unreasonable delay to warrant
application of laches because it is within the prescribed 10-year
period provided by law
- Doctrine of laches, being an equitable principle, should not
supplant what is clearly stated by the law especially when it will
result to injustice and if it was shown that debtor has promised
from time to time the relief sought for
- “One must come to court with clean hands”
testimony in Court that she already paid all debts and in her Answer
that she never received the amounts claimed
- Debts were fully established thru the documents presented by
Lee and all were still in her possession but no receipts were
presented as proof of payment, hence, obligations were not yet
extinguished
ADDITIONAL NOTES:
- 4 elements of laches:
a.) conduct of defendant that give rise to the situation of
which complaint is made and seeks remedy
b.) delay in asserting complainant’s rights despite knowledge
or motive of defendant’s conduct and having opportunity to do so
c.) lack of knowledge or motive of defendant that
complainant will file suit
d.) defendant will be the injured or prejudiced party if the
suit be allowed or not barred
- Discrepancy in the affidavit (2,000) of Lee and her oral testimony
(12,000) on the amount of the Deed of Real Estate Mortgage for the
2 residential houses were accepted after her satisfactory explaining
regarding the fire insurance agreement and documentary evidence
presented because Affidavits are sometimes incomplete or
inaccurate
- Emotional appeals for being poor and illiterate and the other a
prosperous businesswoman may wring the heart of the Court, but
justice must be done according to the law