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    Estanislao V. Eastwest Banking Corporation Case Digest

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    Jules Vosotros
    Rafael Estanislao obtained a loan from Eastwest Banking Corporation secured by equipment but defaulted on payments. Eastwest drafted deeds of assignment for the equipment, which Estanislao delivered, extinguishing his debt. The RTC agreed the debt was extinguished but the CA reversed, saying Estanislao still owed money. The Supreme Court then ruled the deed of assignment was a valid dacion en pago, or debt payment by transfer of property, so delivery of the equipment to Eastwest extinguished Estanislao's entire obligation.

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    © All Rights Reserved
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    Estanislao V. Eastwest Banking Corporation Case Digest

    Uploaded by

    Jules Vosotros
    474 views1 page
    Rafael Estanislao obtained a loan from Eastwest Banking Corporation secured by equipment but defaulted on payments. Eastwest drafted deeds of assignment for the equipment, which Estanislao delivered, extinguishing his debt. The RTC agreed the debt was extinguished but the CA reversed, saying Estanislao still owed money. The Supreme Court then ruled the deed of assignment was a valid dacion en pago, or debt payment by transfer of property, so delivery of the equipment to Eastwest extinguished Estanislao's entire obligation.

    Original Title

    ESTANISLAO v Eastwest Banking

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    Rafael Estanislao obtained a loan from Eastwest Banking Corporation secured by equipment but defaulted on payments. Eastwest drafted deeds of assignment for the equipment, which Estanislao delivered, extinguishing his debt. The RTC agreed the debt was extinguished but the CA reversed, saying Estanislao still owed money. The Supreme Court then ruled the deed of assignment was a valid dacion en pago, or debt payment by transfer of property, so delivery of the equipment to Eastwest extinguished Estanislao's entire obligation.

    Copyright:

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

    Estanislao V. Eastwest Banking Corporation Case Digest

    Uploaded by

    Jules Vosotros
    Rafael Estanislao obtained a loan from Eastwest Banking Corporation secured by equipment but defaulted on payments. Eastwest drafted deeds of assignment for the equipment, which Estanislao delivered, extinguishing his debt. The RTC agreed the debt was extinguished but the CA reversed, saying Estanislao still owed money. The Supreme Court then ruled the deed of assignment was a valid dacion en pago, or debt payment by transfer of property, so delivery of the equipment to Eastwest extinguished Estanislao's entire obligation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    ESTANISLAO v.

    EASTWEST BANKING CORPORATION Case Digest

    SPOUSES RAFAEL ESTANISLAO v. EASTWEST BANKING CORPORATION 


    G.R. No. 178537,February 11, 2008 

    FACTS: On July 24,1997, petitioner obtained a loan fro the respondent in the amount of
    P3,925,000 evidenced by a promissory note and secured by two deeds of chattel
    mortgage covering two dump trucks and a bull dozer . Petitioner defaulted entire
    obligation became due and demandable. A deed of assignment was drafted by the
    respondent on October 6, 2000 and March 8, 2001 respectively. Petitioners completed
    the delivery of heavy equipment mentioned in the deed of assignment to respondent
    which accepted the same without protest or objection. Respondent manifested to admit
    an amended complaint for the seizure and delivery of two more heavy equipment which
    are covered under the second deed of the chattel mortgage. RTC ruled that the deed of
    assignment and the petitioner’s delivery of the heavy equipment effectively extinguished
    the petitioner’s obligation and respondent as stopped. CA reversed the decision
    ordering the petitioner the outstanding debt of P4,275,919.69 plus interests. 

    ISSUE: Did the Deed of Assignment operate to extinguish petitioner’s debt to the


    respondent such that the replevin suit could no longer prosper? 

    RULING: The deed of assignment was a perfected agreement which extinguished


    petitioner’s total outstanding obligation to the respondent. The nature of the assignment
    was a dacion en pago whereby property is alienated to the creditor in the satisfaction of
    a debt in money. Since the agreement was consummated by the delivery of the last unit
    of heavy equipment under the deed, petitioner’s are deemed to have been released
    from all their obligations from the respondents.

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