Haystack: Vda. De Eduque vs. Ocampo (GR L-222, 26 April 1950)

Vda. De Eduque vs. Ocampo
[G.R. No. L-222. April 26, 1950.]
Second Division, Moran (CJ): 5 concurring

Facts: On 16 February 1935, Dr. Jose Eduque secured two loans from Mariano Ocampo de Leon, Doña Escolastica de los Reyes and Don Jose M. Ocampo, the first in the amount of P40,000 and the second in the sum of P15,000, both payable within the period of 20 years, with interest at the rate of 5% per annum. Payment of these two loans was guaranteed by mortgage on real property. In the mortgage contract it is stipulated that any of the mortgage creditors may receive payment and execute deeds of cancellation of the mortgage debts. On 6 December 1943, Salvacion F. Vda. De Eduque, as administratrix of the estate of the deceased Dr. Jose Eduque, tendered payment, by means of a cashier's check, of the total amount of the two loans, P55,000, to Jose M. Ocampo, one of the creditors, who refused to accept payment.

By reason of such refusal, an action was brought and a cashier's check for the total amount of P55,000 was deposited in court. After trial, judgment was rendered against Ocampo compelling him to accept the P55,000 deposited in court, to issue deeds for cancellation of the mortgage debts, and to pay the expenses of consignation and costs. Ocampo accepted the judgment with respect to the second loan of P15,000 upon the ground that, according to him, in the deed of mortgage corresponding to that loan it clearly appeared that the loan was payable "durante el término de 20 años," and that the only question remaining between the parties is the interpretation of the first deed of mortgage regarding the first loan of P40,000. And he asked the court to order "que de la cantidad de P55,000 consignada en este Juzgado, se entregue al demandado la suma de P15,000, después de descontar proporcionalmente cualesquiera cantidades por depósito y otros conceptos según los términos de la decición promulgada." The order was issued accordingly and the sum P15,000 out of the P55,000 deposited in court was delivered to Ocampo.

The present appeal concerns the decision of the lower court regarding the first loan of P40,000, and the principal error assigned by Vda. de Eduque is that tender of payment by means of a cashier's check representing Japanese war notes is not valid.

The Supreme Court affirmed the judgment, with costs against Ocampo.

1. Japanese military notes were legal tender during Japanese occupation; Cashier’s check a sufficient tender where no objection is made
Japanese military notes were legal tender during the Japanese occupation. Further, Ocampo accepted impliedly the consignation of the cashier's check when he himself asked the court that out of the money thus consigned he be paid the amount of the second loan of P15,000. It is a rule that "a cashier's check may constitute a sufficient tender where no objection is made on this ground." (62 C. J., p. 670; see also 40 Amer. Jur., p. 764.)

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