Spouses Miguel Juan del Gallego · G.R. 214003

Petitioner: Spouses Miguel Juan del Gallego
Respondent: Gloria G. Paz
Citation: G.R. No. 214003
Court: Supreme Court
Division: Third Division
Decided: January 25, 2016

Summary

This case involves recovery of a P2,300,000.00 loan made by Gloria G. Paz to Comforter Express Realty, Inc. (CERI) through Elena Del Gallego in 1998, evidenced by two checks that subsequently bounced. The Regional Trial Court ruled in favor of Gloria, awarding the principal amount plus damages and attorney's fees. The Court of Appeals affirmed but deleted moral and exemplary damages. The Supreme Court denied the petition for review, finding that while Elena lacked written corporate authority to bind CERI, she remained personally liable for the debt. The Court reduced attorney's fees from P500,000.00 to P100,000.00, emphasizing that such awards must be reasonable under Article 2208 of the Civil Code. The case establishes principles on corporate officer authority and reasonable attorney's fees in collection cases.

Statutes applied

Civil Code, Art. 2208

Related cases

Other Philippine cases on the same provisions and issues.

Joyce v. Ardiente G.R. No. 161921
Land Bank of the Philippines v. Alfredo Ong G.R. No. 190755
Rosalina Ricafuente v. Oriental Construction G.R. No. 249306
Coca-Cola Bottlers Phils. v. Ernani Guingona Meñez G.R. No. 209906
Doris U. Sunbanun v. Aurora B. Go G.R. No. 163280
Cornelio Lampesa v. Dr. Juan de Vera, Jr. G.R. No. 155111
Rodolfo Morales v. Court of Appeals (Former Seventeenth Division) G.R. No. 117228
Far East Bank v. The Honorable Court of Appeals G.R. No. 108164

By the Intellegal Editorial Board · January 25, 2016

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