- Petitioner
- Crisanta Alcaraz Miguel
- Respondent
- Jerry D. Montanez
- Citation
- G.R. No. 191336
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Reyes, J.
- Decided
- January 25, 2012
Summary
Miguel loaned P143,864 to Montanez in 2001 with house and lot as collateral. Upon default, parties executed Kasunduang Pag-aayos for monthly installments. When Montanez again defaulted, Miguel filed collection suit. Lower courts ruled in Miguel's favor, but CA reversed, holding enforcement of barangay settlement was proper remedy. Supreme Court granted Miguel's petition, applying Article 2041 of Civil Code that when one party fails to comply with compromise agreement, the other may either enforce it or regard it as rescinded and insist on original demand. Since Montanez breached the settlement, Miguel could properly pursue original debt collection rather than settlement enforcement. The Court reinstated the trial court's judgment ordering payment of the debt with interest and attorney's fees.