- Petitioner
- Ma. Julieta B. Bendecio
- Respondent
- Virginia B. Bautista
- Citation
- G.R. No. 242087
- Court
- Supreme Court
- Division
- First Division
- Ponente
- J.Y. Lopez, J.
- Decided
- December 7, 2021
Summary
This case involves a collection suit for an unpaid loan of P1,100,000.00 with 8% monthly interest. Respondent Bautista lent money to petitioner Bendecio in February 2013. When payment became due in May 2013, Bendecio's business partner Mascariñas executed a promissory note extending payment to August 2013, but payment was still not made. Petitioners claimed novation occurred when Mascariñas assumed the debt and that payment was already made. The Supreme Court ruled that no valid novation occurred as the creditor's express consent was not proven, and mere acceptance of a promissory note does not constitute novation. No proof of payment was established. Both petitioners were held solidarily liable as business partners under Civil Code provisions on partnership liability to third persons. The Court modified the interest rates per prevailing jurisprudence, removed moral damages for lack of bad faith, but affirmed the attorney's fees award. The case establishes important precedents on loan novation requirements and partnership solidarity liability.