Sunday, April 14, 2019

Tibajia v CA

G.R. No. 100290 June 4, 1993
Art. 1249 – Payment of debts in money shall be made in currency.

Facts:
·          Eden Tan filed a suit for collection of a sum of money against the Tibajia spouses.
·          The trial court issued a writ of attachment, and thereafter the Deputy Sheriff filed a return stating that he had garnished a deposit made by the Tibajia spouses.
·          Following the final judgment, Tan filed the corresponding motion for execution and thereafter, the garnished funds were levied upon her.
·          The Tibajia spouses delivered to Deputy Sheriff the total money judgment though check.
·          Tan refused to accept the payment made by the Tibajia spouses and instead insisted that the garnished funds deposited with the cashier of the RTC Pasig be withdrawn to satisfy the judgment obligation.  
·          Petitioners filed a motion to lift the writ of execution on the ground that the judgment debt had already been paid.
·          The trial court denied the motion because payment in cashier's check is not payment in legal tender and that payment was made by a third party other than the defendant.

Issue:
WoN payment by means of cashier's check is considered payment in legal tender as required by law.

Held:
            No, the Court rules that a check is not legal tender and that a creditor may validly refuse payment by check, whether it be a manager's, cashier's or personal check.
            Art. 1249. 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.
            In the case at bar, the petitioner issued a cashier’s check which is not a legal tender as required by law. The Court does not sanction the use of a check for the payment of obligations over the objection of the creditor.
            Thus, the petition is DENIED.

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