JACOBO ZOBEL, ET AL.
, plaintiffs-appellants,
vs.
THE CITY OF MANILA, defendant-appellant.
G.R. No. L-22201; January 12, 1925
Facts:
Action was instituted by the Zobel minors under the guardianship of Fernando
Zobel, to recover of the City of Manila the amount of the first two installments of
the purchase price of a tract of land, which has been conveyed by the guardian of
the minor-plaintiffs by deed of sale. Court ordered such payment with interest in
only one of the installments which had an express stipulation for the said interest.
Issue:
WON the court erred in its decision?
Ruling: No
As to the first installment, which was to fall due at three months, it was stipulated
that it should bear no interest. The trial judge appears to have considered that this
stipulation deprived the plaintiffs of the right to interest after default, and no
interest whatever was allowed by him upon this installment. This was error. The
stipulation that this installment should draw no interest was made in the
expectation that the obligation would be paid upon the date stipulated. After
default occurred the defendant became liable for interest as damages regardless of
the absence of an express stipulation for interest and regardless of the statement
that this installment should draw no interest.
It is only the 2nd installment which will accrued up to the date of the filing of the
complaint and consolidated as of that date with the capital after which the whole
shall bear interest at the contract rate of five per centum per annum until paid.
Our conclusion is that no error was committed by the trial court in giving judgment
in favor of the plaintiffs upon both causes of action, but the amount awarded must
be modified to conform to the rules stated with respect to the computation of
interest, with the result that the plaintiffs shall recover of the defendant, upon the
first cause of action, the sum of P45,652.84, as of the date of January 11, 1924,
with interest thereafter at the rate of six per centum per annum until the judgment
shall be paid; and upon the second cause of action the sum of P44,283.04, as of the
date of May 24, 1923, with interest thereafter at the rate of five per centum per
annum until the judgment shall be paid. The plaintiffs will also recover costs of
both instances.
