G.R. No. L-49188 January 30, 1990
Lessons Applicable: Promissory notes and checks (Negotiable Instruments Law)
FACTS:
- November 8, 1967: Amelia Tan, under the name and style of Able Printing Press commenced a complaint for damages before the CFI
- CFI: favored Amelia Tan against Philippine Airlines Inc. (PAL)
- CA affirmed with mod
- May 18, 1978: PAL received a copy of the first alias writ of execution issued on the same day directing Special Sheriff Jaime K. del Rosario to levy on execution in the sum of P25,000.00 with legal interest thereon from July 20,1967 when respondent Amelia Tan made an extra-judicial demand through a letter
- May 23, 1978: PAL filed an urgent motion to quash the alias writ of execution stating that no return of the writ had as yet been made and that the judgment debt had already been fully satisfied as evidenced by the cash vouchers signed and received by Deputy Sheriff Reyes who absconded
- May 26,1978: served a notice of garnishment on the depository bank of PAL
ISSUE: W/N payment made to the absconding sheriff by check in his name operate to satisfy the judgment debt
HELD: NO. CA affirmed.
- payment must be made to the obligee himself or to an agent having authority, express or implied, to receive the particular payment
- The receipt of money due on ajudgment by an officer authorized by law to accept it will, therefore, satisfy the debt
- Since a negotiable instrument is only a substitute for money and not money, the delivery of such an instrument does not, by itself, operate as payment
- The payment made by the PAL to the absconding sheriff was not in cash or legal tender but in checks
Article 1249 of the Civil Code provides:
The payment of debts in money shall be made in the currency stipulated, and if it is not possible to deliver such currency, then in the currency which is legal tender in the Philippines.
The delivery of promissory notes payable to order, or bills of exchange or other mercantile documents shall produce the effect of payment only when they have been cashed, or when through the fault of the creditor they have been impaired.
- As between two innocent persons, one of whom must suffer the consequence of a breach of trust, the one who made it possible by his act of confidence must bear the loss.
- PAL without prudence, departed from what is generally observed and done, and placed as payee in the checks the name of the errant Sheriff and not the name of the rightful payee