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Payment by Check vs. Legal Tender

The spouses Tibajia were ordered to pay Eden Tan over 3 million pesos by the RTC following a collection suit. The Court of Appeals reduced the amount. Tibajia attempted to pay Tan the modified amount of 398,483.70 pesos via check, but Tan refused payment, insisting the garnished funds be used instead. The Supreme Court ruled that a check is not considered legal tender under the law and a creditor can validly refuse payment by check. The Court of Appeals decision was affirmed.

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Remelyn Selda
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100 views1 page

Payment by Check vs. Legal Tender

The spouses Tibajia were ordered to pay Eden Tan over 3 million pesos by the RTC following a collection suit. The Court of Appeals reduced the amount. Tibajia attempted to pay Tan the modified amount of 398,483.70 pesos via check, but Tan refused payment, insisting the garnished funds be used instead. The Supreme Court ruled that a check is not considered legal tender under the law and a creditor can validly refuse payment by check. The Court of Appeals decision was affirmed.

Uploaded by

Remelyn Selda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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SPOUSES TIBAJIA vs.

COURT OF APPEALS and EDEN TAN


G. R. No. 100290

Facts:

A suit of collection of sum of money was filed by Eden Tan


against the spouses. A writ of attachment was issued, the Deputy
Sheriff filed a return stating that a deposit made by Tibajia in the
amount of P442,750 in another case, had been garnished by him.
RTC ruled in favor of Eden Tan and ordered the spouses to pay her
an amount in excess of P3,000,000. Court of Appeals modified the
decision by reducing the amount for damages. Tibajia Spouses
delivered to Sheriff Bolima the total money judgment of
P398,483.70. Tan refused to accept the payment and insisted that
the garnished funds be withdrawn to satisfy the judgment obligation.

Issue:
Whether or not payment by means of check is considered
payment in legal tender

Decision:

The ruling applies the statutory provisions which lay down the
rule that a check is not legal tender and that a creditor may validly
refuse payment by check, whether it be a manager’s check,
cashier’s or personal check. The decision of the court of Appeals is
affirmed.

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