Monday, September 11, 2023

Sally Go-Bangayan v. Spouses Leoncio and Judy Cham Ho, G.R. No 203020, June 28, 2021

 

As for petitioner's claim of stipulated interest of three percent (3%) per month, we are constrained to deny the same. Article 1956 ordains that No interest shall be due unless it has been expressly stipulated in writing. Thus, in the absence of any written proof of the supposed stipulation, petitioner's claim of interest has no factual basis.

At any rate, even if proved, the Court would have just struck it down for being unconscionable. Instead, we impose the legal interest rates in accordance with pertinent jurisprudence. Consequently, legal interest of twelve percent (12%) per annum is imposed pursuant to Eastern Shipping Lines, Inc. v. Court of Appeals from extrajudicial demand on September 21, 2001 until June 30, 2013. Thereafter, the legal interest rate is reduced to six percent (6%) per annum from July 1, 2013 until finality of this decision pursuant to Nacar v. Gallery Frames.

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