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    Filipino Pipe vs. Nawasa G.R. No. L-43446 May 3, 1988 Facts

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    Celine Garcia
    Nawasa entered into a contract with Filipino Pipe to supply pipes but did not pay the full amount owed. Filipino Pipe sued and was awarded a judgment, but Nawasa did not pay. Filipino Pipe then sought to adjust the amount owed due to inflation. The court found that while there was inflation, it was not "extraordinary" as defined by law to allow adjusting the judgment amount, since the decline in purchasing power of the peso was a common trend experienced in many countries. The court ruled that Nawasa did not need to pay a higher adjusted amount.

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    Filipino Pipe vs. Nawasa G.R. No. L-43446 May 3, 1988 Facts

    Uploaded by

    Celine Garcia
    36 views1 page
    Nawasa entered into a contract with Filipino Pipe to supply pipes but did not pay the full amount owed. Filipino Pipe sued and was awarded a judgment, but Nawasa did not pay. Filipino Pipe then sought to adjust the amount owed due to inflation. The court found that while there was inflation, it was not "extraordinary" as defined by law to allow adjusting the judgment amount, since the decline in purchasing power of the peso was a common trend experienced in many countries. The court ruled that Nawasa did not need to pay a higher adjusted amount.

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    Nawasa entered into a contract with Filipino Pipe to supply pipes but did not pay the full amount owed. Filipino Pipe sued and was awarded a judgment, but Nawasa did not pay. Filipino Pipe then sought to adjust the amount owed due to inflation. The court found that while there was inflation, it was not "extraordinary" as defined by law to allow adjusting the judgment amount, since the decline in purchasing power of the peso was a common trend experienced in many countries. The court ruled that Nawasa did not need to pay a higher adjusted amount.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    36 views1 page

    Filipino Pipe vs. Nawasa G.R. No. L-43446 May 3, 1988 Facts

    Uploaded by

    Celine Garcia
    Nawasa entered into a contract with Filipino Pipe to supply pipes but did not pay the full amount owed. Filipino Pipe sued and was awarded a judgment, but Nawasa did not pay. Filipino Pipe then sought to adjust the amount owed due to inflation. The court found that while there was inflation, it was not "extraordinary" as defined by law to allow adjusting the judgment amount, since the decline in purchasing power of the peso was a common trend experienced in many countries. The court ruled that Nawasa did not need to pay a higher adjusted amount.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    FILIPINO PIPE vs.

    NAWASA 
    G.R. No. L-43446 May 3, 1988

    FACTS:

     NAWASA entered into a contract with the plaintiff FPFC for the latter to supply iron pressure pipes worth
    P270,187.50 to be used in the construction of the Anonoy Waterworks in Masbate and the Barrio San
    Andres-Villareal Waterworks in Samar.

     NAWASA paid in installments on various dates, a total of P134,680.00 leaving a balance of P135,507.50
    excluding interest.

     FPFC demanded payment from NAWASA of the unpaid balance of the price with interest in accordance with
    the terms of their contract

     NAWASA failed to pay, plaintiff filed a collection suit

     RTC rendered judgment orderedNAWASA to pay the unpaid balance in NAWASA negotiable bonds.

     NAWASA did not deliver the bonds to the judgment creditor.

     FPFC filed another complaint seeking an adjustment of the unpaid balance in accordance with the value of
    the Philippine peso.

     FPFC presented voluminous records and statistics showing that a spiralling inflation has marked the progress
    of the country from 1962 up to the present. There is no denying that the price index of commodities, which
    is the usual evidence of the value of the currency has been rising.

    ISSUE:

    Whether there exists an extraordinary inflation of the currency justifying an adjustment of NAWASA's unpaid
    judgment obligation to FPFC?

    HELD:

    Article 1250 of the Civil Code provides: “In case an extraordinary inflation or deflation of the currency
    stipulated should supervene, the value of the currency at the time of the establishment of the obligation shall be the
    basis of payment, unless there is an agreement to the contrary.”

    Extraordinary inflation exists "when there is a decrease or increase in the purchasing power of the Philippine currency
    which is unusual or beyond the common fluctuation in the value said currency, and such decrease or increase could
    not have reasonably foreseen or was manifestly beyond contemplation the the parties at the time of the
    establishment of the obligation. (Tolentino Commentaries and Jurisprudence on the Civil Code Vol. IV, p. 284.)

    While appellant's voluminous records and statistics proved that there has been a decline in the purchasing power of
    the Philippine peso, this downward fall of the currency cannot be considered "extraordinary." It is simply a universal
    trend that has not spared our country.

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