Segovia Development… · G.R. 141283

Petitioner: Segovia Development Corporation
Respondent: J.L. Dumatol Realty
Citation: G.R. No. 141283
Court: Supreme Court
Division: Second Division
Ponente: Bellosillo, J.
Decided: August 30, 2001

Summary

This case involves a contract dispute between two real estate development corporations over three condominium units worth P6.05 million. Dumatol paid P4.4 million but defaulted on monthly installments, leading Segovia to attempt contract cancellation. The primary legal issue concerned the validity of a 3% monthly penalty charge and proper consignation procedures. The Supreme Court found the 3% monthly penalty (36% annually) unconscionable under Article 1229 of the Civil Code and reduced it to 1% monthly (12% annually). The Court rejected claims for 6% additional interest, contract price adjustments, and compensatory damages for unrealized profits. The decision establishes important precedent on unconscionable penalty clauses in real estate contracts and proper consignation requirements under the Civil Code.

Statutes applied

Civil Code, Art. 1229

Related cases

Other Philippine cases on the same provisions and issues.

C. G. Dizon Construction Inc. v. Teodoro Bañas G.R. No. 128703
Asiatrust Development Bank v. Concepts Trading Corporation G.R. No. 130759
Antonio Lo v. The Hon. Court of Appeals G.R. No. 141434
Restituta M. Imperial v. Alex A. Jaucian G.R. No. 149004
State Investment House v. Court of Appeals G.R. No. 112590
Antonio Tan v. Court of Appeals G.R. No. 116285
Barons Marketing Corp. v. Court of Appeals G.R. No. 126486
Filinvest Land v. Hon. Court of Appeals G.R. No. 138980

Other Philippine cases also address these provisions and issues.

Search Philippine case law on Intellegal →

By the Intellegal Editorial Board · August 30, 2001

Search Philippine case law on Intellegal →

AI-assisted case analysis — for research only. Verify against the official decision. A research aid, not legal advice; using this page creates no attorney-client relationship. For legal advice, consult a Philippine lawyer. Verify every holding and citation against the official decision (Supreme Court E-Library / Official Gazette) before relying on it.