Petitioner
Bonifacio Pimentel
Respondent
Eugenio Gutierrez
Citation
G.R. No. 3377
Court
Supreme Court
Division
First Division
Ponente
Johnson, J.
Decided
August 24, 1909

Summary

This 1909 Supreme Court case involved a loan contract dispute between Bonifacio Pimentel and three co-debtors who borrowed P3,000 at 10% annual interest in 1901. The defendants claimed a new payment arrangement and made partial payments totaling P785.38. The trial court erroneously held only one defendant liable for the full amount. The Supreme Court corrected this, ruling that under Civil Code Articles 1137-1138, the loan created joint liability, making each debtor responsible only for their proportionate share. The Court rejected the defendants' claim of a new payment arrangement but recognized the suspension of interest from December 1904. The decision established important precedents regarding joint versus several liability in loan contracts and the application of payments to interest versus principal under Philippine civil law.

Statutes applied

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By Intellegal Editorial Board · August 24, 1909

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