25. CALTEX V.
IAC
G.R. No. 72703 | November 13, 1992
Alexandra Distor
FACTS:
Asia Pacific Airways (APA) entered into an agreement with Caltex. Under the agreement, Caltex will supply APA’s
fuel requirements for 2 years. After the end of 2 years, APA had an outstanding obligation to petitioner amounting to
P4,072,682.13 representing the unpaid price of the fuel supplied. To settle this obligation, APA executed a Deed of Assignment
wherein it assigned to Caltex its receivables or refunds of Special Fund Import Payments from the National Treasury of the
Philippines to be applied as payment for the P4,072,682.13. Pursuant to the Deed of Assignment, the National Treasury issued a
treasury warrant in the amount of P5,475,294 representing the refund to APA in favor of Caltex. So APA, having learned that the
amount remitted to Caltex exceeded the amount covered by the Deed of Assignment, requested Caltex for a refund of said excess.
Caltex made a refund amounting to P900,000 plus in favor of APA. However, APA believing it was entitled to a larger amount,
demanded for P510,550.63 more but Caltex insisted that the latter amount represented interest and service charges at the rate of
18% per annum on the unpaid and overdue account of APA.
Caltex is now arguing that the Deed of Assignment did not satisfy the requisites of dation in payment which would
have the effect of immediately extinguish APA’s obligation because:
1. the Deed of Assignment covers future obligations for “applicable interest charges on overdue account and other avturbo
fuel lifting and deliveries that assignor (APA) may from time to time receive from assignees (Caltex)” as stated in the
deed of assignment.
2. Deed includes an express reservation by assignee to demand full payment of the obligations of the assignor “in case of
unreasonable delay or non-receipt of assignee of the aforementioned funds and/or refund due to any cause or reason
whatsoever”.
3. Subsequent acts of the parties clearly show that they did not intend the deed of assignment to have the effect of dation
in payment.
PROCEDURAL HISTORY:
RTC. In favor of Caltex.
IAC. In favor of Asia Pacific Airways.
ISSUE/S:
1. Whether the Deed of Assignment made on July 31, 1980 constituted dacion en pago such that the obligation is totally
extinguished and after said date and no interest and service charges amounting to P510,550.63 could anymore be imposed on
APA.
RULING:
The elements of Dation in Payment are:
1. Existence of a money obligation
2. Alienation to the creditor of a property by the debtor with the consent of the former
3. Satisfaction of the money obligation of the debtor.
Dation in payment does not necessarily mean total extinguishment of the obligation UNLESS the parties, by
agreement, express or implied, or by their silence, consider the thing as equivalent to the obligation. The Deed of Assignment did
not satisfy the requisites to be considered dation in payment. Evident in the express words of the Deed, it speaks of 3 obligations
and is not limited only to the outstanding debt of APA.
1. Outstanding obligation of P4,072,682.13
2. The applicable interest charges on overdue accounts
3. The other avturbo fuel lifting and deliveries that APA may from time to time receive from Caltex.
The subsequent acts also of the parties clearly show that they did not intend the Deed of Assignment to be one in dation
in payment to totally extinguish the obligation because after the execution of the Deed, Caltex continued to charge APA with
interest on its overdue account which were made every month and not once did APA question or take exception to the interest.
APA even requested a consideration from Caltex to limit the interest charges and reduce the 18% interest rate.
.
DISPOSITION:
Court set aside IAC decision and reinstated the RTC’s judgement.
