Lucresia H. Caparuso v. Imelda · G.R. 255179

Petitioner: Lucresia H. Caparuso
Respondent: Imelda U. Oliveron
Citation: G.R. No. 255179
Court: Supreme Court
Division: Second Division
Decided: April 26, 2021

Summary

This case involves a loan collection dispute where the Supreme Court denied a petition for review on certiorari filed by the heirs of deceased borrower Lucresia H. Caparuso against lender Imelda U. Oliveron. The core issue centered on a loan agreement (Kasunduan) with a P300,000 principal and 7% monthly interest rate. The Court affirmed the borrower's obligation to pay the principal but struck down the unconscionable 7% monthly interest rate, substituting it with the legal rate of 6% per annum pursuant to Nacar v. Gallery Frames. The Court also deleted the attorney's fees award for lack of proper justification under Civil Code Article 2208. The decision demonstrates judicial power to temper excessive interest rates while upholding valid contractual obligations, balancing freedom of contract with protection against unconscionable terms in loan agreements.

Statutes applied

Civil Code, Art. 2208

Related cases

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Joyce v. Ardiente G.R. No. 161921
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Doris U. Sunbanun v. Aurora B. Go G.R. No. 163280
Cornelio Lampesa v. Dr. Juan de Vera, Jr. G.R. No. 155111
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By Intellegal Editorial Board · April 26, 2021

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