- Petitioner
- Santos Ventura Hocorma Foundation
- Respondent
- Ernesto V. Santos
- Citation
- G.R. No. 153004
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Quisumbing, J.
- Decided
- November 5, 2004
Summary
Santos Ventura Hocorma Foundation and Ernesto Santos executed a compromise agreement in 1990 to settle multiple civil cases, requiring SVHFI to pay P14.5 million (P1.5 million immediately, P13 million within two years). While SVHFI paid the initial amount, it failed to pay the P13 million balance within the two-year period ending October 26, 1992. After demand letters and execution proceedings, auction sales were conducted where Riverland Inc. purchased SVHFI's properties. Santos and Riverland sought legal interest on the delayed payment. The Supreme Court affirmed the Court of Appeals' ruling that SVHFI was liable for legal interest at 12% per annum from the date of demand, applying Civil Code provisions on delay and damages. The Court emphasized that compromise agreements are immediately binding upon execution and that delay in payment of liquidated obligations entitles creditors to interest as damages.