- Petitioner
- Andrea Salvador
- Respondent
- Basilio Palencia
- Citation
- G.R. No. 7442
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Arellano, C.J.
- Decided
- February 27, 1913
Summary
This 1913 Supreme Court case involved collection of a mortgage debt where the key dispute was interpretation of interest terms. Juan and Basilio Palencia mortgaged property to secure a P5,250 debt to Eugenio Pardiñas with 25% interest. After Pardiñas died, his widow Andrea Salvador sued for collection. The main issue was whether 'annual' was originally in the contract or added later. The trial court found Basilio Palencia consented to annual interest but insufficient evidence Juan Palencia did. The Supreme Court affirmed but clarified that overdue stipulated interest must earn legal interest from judicial demand per Civil Code art. 1109, and attorney's fees should be calculated on amounts actually collected. The decision established important precedent on interest calculations and attorney fee arrangements in mortgage collection cases.