L. B. Robinson v. Carmen Sackermann de Macleod

Summary

This 1924 Supreme Court case involved mortgage foreclosure proceedings where Carmen Sackermann de Macleod challenged interest calculations on two mortgages. The Postal Savings Bank held a first mortgage for P20,000 at 7% annual interest, while L.B. Robinson held a second mortgage for P16,000 at 12% interest. The defendant appealed the lower court's interest computation and raised a usury defense. The Supreme Court modified the first mortgage judgment, applying Civil Code Article 1109 and Usury Law Section 5 principles that compound interest on accrued interest is only allowed from the date of judicial demand at 6% rate. The Court rejected the usury defense for failure to raise it in the trial court, affirming that such defenses must be pleaded in the answer. The decision established important precedent on interest calculation in mortgage foreclosures and procedural requirements for usury defenses.