- Petitioner
- Trans-Pacific Industrial Supplies
- Respondent
- The Court of Appeals
- Citation
- G.R. No. 109172
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Bidin, J.
- Decided
- August 19, 1994
Summary
Trans-Pacific Industrial Supplies obtained a restructured loan from Associated Bank and later claimed full payment when the bank returned promissory notes stamped 'PAID'. The bank subsequently demanded P492,100.00 in accrued interest. The Regional Trial Court initially ruled for Trans-Pacific based on the Civil Code presumption that delivery of credit documents implies renunciation. However, the Court of Appeals and Supreme Court found this presumption was rebutted by Trans-Pacific's own written admissions of the unpaid balance. The Supreme Court affirmed that the obligation was not fully discharged and that attorney's fees were properly awarded to the bank for the unfounded lawsuit. The decision emphasizes that presumptions under Article 1271 are rebuttable and that a party's own admissions can defeat such presumptions.