Petitioner
Heirs of Ma. Lourdes Ong
Respondent
First Metro Investment Corporation
Citation
G.R. No. 239177
Court
Supreme Court
Division
Third Division
Decided
July 10, 2019

Summary

This case involved the collection of proceeds from a promissory note representing a money market placement. Wilson Sy invested P200,000.00 with FMIC in 1991, with the note payable to 'Bearer W. Sy ITF Lourdes Ong' and maturing October 1, 1991. After Lourdes died in 2002, her husband Jose discovered the note in 2003 and demanded payment. FMIC claimed it was already settled but lacked supporting documents. The Supreme Court held that the money market placement was a simple loan subject to the 10-year prescriptive period under Article 1144 of the Civil Code. Since the obligation became due on the maturity date and no demand was made until 2006, the claim was barred by prescription. The Court affirmed the dismissal of the complaint, establishing that prescription runs from the maturity date of written contracts, not from discovery or demand.

Statutes applied

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By Intellegal Editorial Board · July 10, 2019

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