Teddy G. Pabugais v. Dave P. Sahijwani

Summary

This case involves a failed real estate transaction where petitioner Pabugais agreed to sell property to respondent Sahijwani for P15.4M. When petitioner failed to deliver required documents, he attempted to return the P600,000 option fee with interest via manager's check, which respondent refused. Petitioner then consigned P672,900 with the court. The Supreme Court affirmed the validity of the consignation, holding that tender via manager's check was acceptable and the amount sufficient per contract terms. The Court denied petitioner's attempt to withdraw the consigned amount, ruling that respondent's acceptance extinguished the obligation, and that petitioner's assignment of part of the amount to his lawyer violated Civil Code Article 1491 and professional ethics rules prohibiting lawyers from acquiring litigation property. The decision establishes important precedents on consignation validity and lawyer-client financial arrangements during litigation.