LAW ON SALES CASE DIGEST/ CERNA VS. COURT OF APPEALS/ 220 SCRA 517 (MARCH 30, 1993)

LAW ON SALES CASE DIGEST
CERNA VS. COURT OF APPEALS
220 SCRA 517 (MARCH 30, 1993)

TOPIC/DOCTRINE

Institution of money claim against estate of deceased principal debtor bars the foreclosure of a mortgage.

FACTS

            On or about October 16, 1972, Celerino Delgado (Delgado) and Conrad Leviste (Leviste) entered into a loan agreement. On the same date, Delgado executed a chattel mortgage over Willy's jeep owned by him. And acting as the attorney-in-fact of herein petitioner, Manolo P. Cerna (petitioner), he also mortgaged a Taunus' car owned by the latter. Only Delgado signed the promissory note and accordingly, he was the only one bound by the contract of loan. Nowhere did it appear in the promissory note that the petitioner was a co-debtor.

            The period lapsed without Delgado paying the loan. This prompted Leviste to file a collection suit against the estate of now-deceased Delgado and petitioner as solidary debtors.

 

ISSUE

Whether Leviste, having chosen to file the collection suit, could now run after petitioner for the satisfaction of the debt.

RULING

The court ruled on the negative.

         The court held that the institution of money claim against the estate of the deceased principal debtor bars the foreclosure of a mortgage. 

         Applying this to the case, Leviste, having chosen to file the collection suit, could not now run after the petitioner for the satisfaction of the debt.


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