Daniel L. Borbon Ii v. Servicewide Specialists

Summary

The Borbon brothers defaulted on installment payments for an Isuzu vehicle purchase secured by chattel mortgage. After assignment of rights to Servicewide Specialists, Inc., the company repossessed the vehicle and sought liquidated damages and attorney's fees. The Supreme Court applied Article 1484 of the Civil Code, which provides alternative remedies for installment sales of personal property. The Court ruled that when a vendor or assignee chooses to foreclose the chattel mortgage, they cannot recover any unpaid balance, including liquidated damages, as the remedies are alternative and exclusive. However, attorney's fees were upheld as reasonable given the circumstances requiring court intervention. The decision clarifies the scope of protection afforded to buyer-mortgagors under installment sales contracts while recognizing justified expenses for legal proceedings.