Professional Documents
Culture Documents
PCIB
(April 25,2006)
FACTS: Respondent PCIBANK filed complain for a sum of money with prayer
for preliminary attachment against petitioner ASIACON.
The first cause of action was that ASIACON had not paid its credit account
with PCIBANK amounting to $4,487,000. The second cause of action was that
PCIBANK suffered damages and prayed that ASIACON pay Exemplary
damages, attorneys fees, and the cost of suit, and that ASIACON is guilty of
fraud in contracting the debt and in the performance thereof or both.
By way of defenses, ASIACON pleads in its answer the alleged Severe
Financial Crisis which hit the Philippines in July 1997 which affected and put
it out of business.
PCIBANK filed a verified Motion for Summary Judgment therein contending
that ASIACONs defenses are a sham and that the financial crisis alleged in
the answer is not a fortuitous event that would excuse debtors from their
loan obligations, nor is it an exempting circumstance under ART. 1262, CC.
RTC in favor of PCIBANK granted the motion for Summary Judgment.
Upon Appeal, the CA affirmed with modification the Summary Judgment,
reducing the amount of attorneys fees from (P1,260,000) to (P1M).
With its motion for reconsideration denied by the CA, ASIACON now appeals
to the SC.
ISSUES: (I) Whether or not there is a genuine issue as to the material fact
which rules out the propriety of the summary judgment;
(II) Whether or not the award of Attorneys fees is exorbitant or
unconscionable.
RULING: (I) CA did not commit any reversible error in affirming the
summary judgment rendered by the trial court as, at bottom, there existed
no genuine issue as to any material fact.
(II) CAs reduction in the award of attorneys fees to only P1,000,000.00,
given the fact that there was no full-blown trial.