Medel vs. CA Up to Nacar vs. Gallery Frames

Medel vs Court of Appeals, 299 SCRA 481; GR No. 131622, Novemer 2!, 1998, d"#ested $osted % $"us Morados o& Novemer 3', 2'11 (Cred"t )ra&sa*t"o&s )ra&sa*t"o&s + oa&s, -sur% a, /&terest Rates0 a*ts efe&da&ts ota"&ed a loa& from $la"&t"ff "& te amou&t $5', '''.'', pa%ale "& 2 mo&ts a&d ee*uted a prom"ssor% &ote. $la"&t"ff #ave o&l% te amou&t of $4!, '''.'' '''.'' to te orroers orroers a&d reta"&ed $3, '''.'' as adva&*e "&terest "&terest for 1 mo&t at 67 per mo&t. efe&da&ts ota"&ed a&oter loa& from efe&da&t "& te amou&t of $9', '''.'', pa%ale "& 2 mo&ts, at 67 "&terest per mo&t. )e% ee*uted a prom"ssor% &ote to ev"de&*e te loa& a&d re*e"ved o&l% $84, '''.'' out of te pro*eeds of te loa&. or te t"rd t"me, efe&da&ts se*ured from $la"&t"ff a&oter loa& "& te amou&t of  $3'', '''.'', matur"&# "& 1 mo&t, a&d se*ured % a real estate mort#a#e. )e% ee*uted a prom"ssor% &ote "& favor of te $la"&t"ff. oever, oever, o&l% te sum of $2!5, '''.'', as #"ve& to tem out of te pro*eeds of te loa&. -po& -po& matu matur" r"t% t% of te te tre treee prom prom"s "sso sor% r% &otes &otes,, efe& efe&da da&t &tss fa"l fa"led ed to pa% pa% te te "&deted&ess. efe&da&ts *o&sol"dated all te"r prev"ous u&pa"d loa&s totall"&# $44', '''.'', a&d sou#t from $la"&t"ff a&oter loa& "& te amou&t of $6', '''.'', r"&#"&# te"r "&deted&ess to a total of $5','''.''. )e% ee*uted a&oter prom"ssor% &ote "& favor of $la"&t"ff to pa% te sum of $5'', '''.'' "t a 5.57 "&terest per mo&t plus 27 serv"*e *ar#e per a&&um, "t a& add"t"o&al amou&t of 17 per mo&t as pe&alt% *ar#es. & matur"t% of te loa&, te efe&da&ts fa"led to pa% te "&deted&ess "* prompt te $la"&t"ffs to f"le "t te R)C a *ompla"&t for *olle*t"o& of te full amou&t of te loa& "&*lud"&# "&terests a&d oter *ar#es.

e*lar"&# tat te due ee*ut"o& a&d #e&u"&e&ess of te four prom"ssor% &otes as ee& dul% proved, te R)C ruled tat altou# te -sur% a ad ee& repealed, te "&terest *ar#ed o& te loa&s as u&*o&s*"o&ale a&d :revolt"&# to te *o&s*"e&*e a&d ordered te pa%me&t of te amou&t of te f"rst 3 loa&s "t a 127 "&terest per a&&um a&d 17 per mo&t as pe&alt%. & appeal, $la"&t"ff a&d )rust Co vs R)C0. -sur% as ee& le#all% &o&at" Ave&ue, Ma>at" C"t%, $"l"pp"&es, te sum of KKKKKKKKKKKKKK $HSS, ($KKKKK0, $"l"pp"&e Curre&*%, "t "&terest tereo& at te rate "&d"*at"ve of = reta"l rate or as determ"&ed % te =ra&* ead. )e spouses, oever, fa"led to pa% te"r ol"#at"o&s "t te a&>. ue to t"s, te a&> fore*losed te propert% "* as u&der mort#a#e. Spouses =eluso f"led a pet"t"o& for te a&&ulme&t, a**ou&t"&# a&d dama#es a#a"&st -C$=. /ssue /s -C$= autor"Led to u&"laterall% f" te "&terest rates Rul"&# No A prom"ssor% &ote "* #ra&ts te *red"tor te poer to u&"laterall% f" te "&terest rate mea&s tat te prom"ssor% &ote does &ot *o&ta"& a *lear stateme&t "& r"t"&# of te f"&a&*e *ar#e. Su* prov"s"o& "s "lle#al e*ause "t v"olates te prov"s"o&s of te C"v"l Code o& mutual"t% of *o&tra*ts Rat"o Art. 13'8. )e *o&tra*t must "&d ot *o&tra*t"&# part"es; "ts val"d"t% or *ompl"a&*e *a&&ot e left to te "ll of o&e of tem.

 :@e appl"ed t"s prov"s"o& "& $"l"pp"&e Nat"o&al =a&> v. Court of Appeals, ere e eld /& order tat ol"#at"o&s ar"s"&# from *o&tra*ts ma% ave te for*e of la etee& te part"es, tere must e mutual"t% etee& te part"es ased o& te"r esse&t"al eual"t%. A *o&tra*t *o&ta"&"&# a *o&d"t"o& "* ma>es "ts fulf"llme&t depe&de&t e*lus"vel% upo& te u&*o&trolled "ll of o&e of te *o&tra*t"&# part"es, "s vo"d (Gar*"a vs. R"ta e#arda, /&*., 21 SCRA 5550. e&*e, eve& assum"&# tat te loa& a#reeme&t etee& te $N= a&d te pr"vate respo&de&t #ave te $N= a l"*e&se (altou# "& fa*t tere as &o&e0 to "&*rease te "&terest rate at "ll dur"&# te term of te loa&, tat l"*e&se ould ave ee& &ull a&d vo"d for e"&# v"olat"ve of te pr"&*"ple of mutual"t% esse&t"al "& *o&tra*ts. /t ould ave "&vested te loa& a#reeme&t "t te *ara*ter of a *o&tra*t of ades"o&, ere te part"es do &ot ar#a"& o& eual foot"&#, te ea>er part%Os (te detor0 part"*"pat"o& e"&# redu*ed to te alter&at"ve Pto ta>e "t or leave "tP (Qua vs. a -&"o& ? Ro*> /&sura&*e Co., 95 $"l. 850. Su* a *o&tra*t "s a ver"tale trap for te ea>er part% om te *ourts of Dust"*e must prote*t a#a"&st ause a&d "mpos"t"o&. Moral /&terest A#reeme&ts must ala%s e mutuall% a#reed upo& % te part"es )a&> %ou

"mper"al vs. Dau*"a& AC)S $et"t"o&er ota"&ed s" (60 separate loa&s amou&t"&# to $ 32','''.'' from te respo&de&t. /& te r"tte& a#reeme&t, te% a#reed upo& te 167 "&terest per mo&t plus pe&alt% *ar#e of 57 per mo&t a&d te 257 attor&e%s fee, fa"lure to pa% te sa"d loa&s o& te st"pulated date. $et"t"o&er ee*uted s" (60 separate prom"ssor% &otes a&d "ssued several *e*>s as #uara&tee for pa%me&t. @e& te sa"d loa&s e*ome overdue a&d u&pa"d, espe*"all% e& te pet"t"o&ers *e*>s "ssued ere d"so&ored, respo&de&t made repeated oral a&d r"tte& dema&ds for pa%me&t. )e pet"t"o&er as ale to pa% o&l% $ 116,54'.'' as fou&d % te R)C. Altou# se alle#ed tat se ad alread% pa"d te amou&t of $ 441,!8'.'' a&d te e*ess of $ 121,!8'.'' "s more ta& te "&terest tat *ould e le#all% *ar#ed, te Court aff"rms te f"&d"&#s of R)C tat pet"t"o&er "s st"ll "&deted to te respo&de&t. /SS-H @eter or &ot te st"pulated "&terest of 167 per mo&t, 57 per mo&t for pe&alt% *ar#e a&d 257 attor&e%s fee are usur"ous.

H HS. )e rate must e eu"tal% redu*ed for e"&# "&"u"tous, u&*o&s*"o&ale a&d eor"ta&t. @"le te -sur% a *e"l"&# o& "&terest rates as l"fted % C.=. C"r*ular No. 9'5, &ot"&# "& te sa"d *"r*ular #ra&ts le&ders *arte la&*e autor"t% to ra"se "&terests rates to levels "* "ll e"ter e&slave te"r orroers or lead to a emorra#"&# of te"r assets. @e& te a#reed rate "s "&"u"tous or u&*o&s*"o&ale, "t *o&s"dered *o&trar% to morals, "f &ot a#a"&st te la. Su* st"pulat"o& "s vo"d. S"&*e te st"pulat"o& "s vo"d, "t "s as "f tere as &o epress *o&tra*t tereo&. e&*e, *ourts ma% redu*e te "&terest rate as reaso& a&d eu"t% dema&d. )e "&terest rate of 167 per mo&t as redu*ed to 1.16!7 per mo&t or 147 per a&&um a&d te pe&alt% *ar#e of 57 per mo&t as also redu*ed to 1.16!7 per mo&t or 147 per a&&um. )e attor&e%s fees ere are "& te &ature of l"u"dated dama#es a&d te st"pulat"o& terefor "s aptl% *alled a pe&al *lause. So lo&# as te st"pulat"o& does &ot *o&trave&e te la, morals, pul"* order or pul"* pol"*%, "t "s "&d"&# upo& te ol"#or. Neverteless, "& te *ase at ar, pet"t"o&ers fa"lure to *ompl% full% "t er ol"#at"o& as &ot mot"vated % "ll "ll or mal"*e. )e part"al pa%me&ts se made ere ma&"festat"o&s of er #ood fa"t. e&*e te attor&e%s fees ere redu*ed to 1'7 of te total due a&d pa%ale. "am a vs l%mp"* Sam"ll Co. a&d Hl"&o ee C" 129 SCRA 449 (19840 Mar* 15, 2'16 $o&e&te B. Mele&*"oed for ete&s"o& a&d a&oter loa& as ee*uted, ete&d"&# te pa%me&t of te loa& a&d add"&# $6,'''.'' as a&ser for attor&e%s fees, le#al "&terest a&d oter *ost "&*"de&t tereto.

a f"led a *olle*t"o& *ase e& te defe&da&ts ere u&ale to pa% te se*o&d t"me. )e C/ of =ula*a& de*"ded "& favor of te pla"&t"ff. & appeal, te Court of  Appeals e&dorsed te *ase to te Supreme Court, stat"&# tat te "ssue "&volved as o&e of la. /SS-H @eter or &ot te a#reeme&t to pa% $6,'''.'' "& add"t"o& to te pr"&*"pal ol"#at"o& "s laful. H es. Art"*le 1354 of te C"v"l Code states tat Art"*le 1354. Altou# te *ause "s &ot stated "& te *o&tra*t, "t "s presumed tat "t e"sts a&d "s laful, u&less te detor proves te *o&trar%. /& relat"o& to te *ase, te a#reeme&t of te part"es relat"ve to te $6,'''.'' ol"#at"o&, "tout a& ev"de&t"ar% ear"&#, "t as to e *o&*luded tat defe&da&ts ad &ot prove& tat te $6,'''.'' ol"#at"o& as "lle#al. e&*e, "t "s presumed tat te a#reeme&t of te part"es relat"ve to te $6,'''.'' e"sts a&d "s laful. $R/SMA S. MHNCAH MARC 28, 2'13 T =/A $R/SMA CNS)R-C)/N ? HH$MHN) CR$RA)/N a&d RGH/ S. $AN)AHN vs AR)-R . MHNCAH G.R. No. 16'545; Mar* 9, 2'1' AC)S e*emer 8, 1993, $a&taleo&, $res"de&t a&d Ca"rma& of te =oard of $R/SMA, ota"&ed a $1M loa& from te respo&de&t, "t mo&tl% "&terest of $4','''.'' pa%ale for 6 mo&ts, or a total ol"#at"o& of $1,24','''.'' pa%ale "t"& 6 mos. )o se*ure te pa%me&t of te loa&, $a&taleo& "ssued a prom"ssor%. $a&taleo& s"#&ed te prom"ssor% &ote "& "s perso&al *apa*"t% a&d as dul% autor"Led % te =oard of 

"re*tors of $R/SMA. )e pet"t"o&ers fa"led to *ompletel% pa% te loa& "t"& te 6< mo&t per"od. As of Ba&uar% 4, 199!, respo&de&t fou&d tat te pet"t"o&ers st"ll ad a& outsta&d"&# ala&*e of $1,364,151.'', to "* respo&de&t appl"ed a 47 mo&tl% "&terest. & Au#ust 28, 199!, respo&de&t f"led a *ompla"&t for sum of mo&e% to e&for*e te u&pa"d ala&*e, plus 47 mo&tl% "&terest. /& te"r A&ser, te pet"t"o&ers adm"tted te loa& of $1,24','''.'', ut de&"ed te st"pulat"o& o& te 47 mo&tl% "&terest, ar#u"&# tat te "&terest as &ot prov"ded "& te prom"ssor% &ote. $a&taleo& also de&"ed tat e made "mself perso&all% l"ale a&d tat e made represe&tat"o&s tat te loa& ould e repa"d "t"& s" (60 mo&ts. R)C fou&d tat te respo&de&t "ssued a *e*> for $1M "& favor of te pet"t"o&ers for a loa& tat ould ear& a& "&terest of 47 or $4','''.'' per mo&t, or a total of  $24','''.'' for a 6e a &e *o&tra*t for te part"es; a *ourts dut% "s *o&f"&ed to te "&terpretat"o& of te *o&tra*t te part"es made for temselves "tout re#ard to "ts "sdom or foll%, as te *ourt *a&&ot suppl% mater"al st"pulat"o&s or read "&to te *o&tra*t ords te *o&tra*t does &ot *o&ta"&. /t "s o&l% e& te *o&tra*t "s va#ue a&d am"#uous tat *ourts are perm"tted to resort to te "&terpretat"o& of "ts terms to determ"&e te part"es "&te&t. /& te prese&t *ase, te respo&de&t "ssued a *e*> for $1M. /& tur&, $a&taleo&, "& "s perso&al *apa*"t% a&d as autor"Led % te =oard, ee*uted te prom"ssor% &ote. )us, te $1M loa& sall e pa%ale "t"& 6 mo&ts. )e loa& sall ear& a& "&terest of $4','''.'' per mo&t, for a total ol"#at"o& of $1,24','''.'' for te s" Proximate

lore&*"o Re%es "ssued postdated *e*>s to @"&&er /&dustr"al Corporat"o& (2'>T0 a&d "&*e&t )u" (11>T0 as pa%me&ts for te pur*ased soe mater"als a&d ruer soes. )o *over te fa*e value of te *e*>s, Re%es reuested $C/= Mo&e% Sops ma&a#er to effe*t te "tdraal of 32> from "s sav"&#s a**ou&t a&d ave "t depos"ted "t "s *urre&t a**ou&t "t $"l"p"&as =a&>. Roerto Sa&tos as reuested to ma>e te depos"t. /& depos"t"&# "& te &ame of Re%es, Sa&tos "&u"red from te teller Re%es *urre&t a**ou&t &umer to *omplete te depos"t sl"p e as a**ompl"s"&#. e as "&formed tat "t

as :815 so tat as te &umer e pla*ed o& te sl"p. Not"&# tat te a**ou&t &umer *o"&*"ded "t te &ame :lore&*"o, Hfre& Ala#as" E$"l"p"&as =a&> Curre&t A**ou&t =oo>>eeperF tou#t "t as for lore&*"o Amador, so e posted te depos"t "& te a**ou&t of  Amador. )e *e*> "& favor of @"&&er as prese&ted for pa%me&t. S"&*e Re%es led#er "&d"*ated tat "s a**ou&t o&l% ad 4>T ala&*e, te *e*> as d"so&ored. )"s *e*> as redepos"ted 4 da%s later ut "t as d"so&ored a#a"&. )"s also appe&ed "t te *e*> "ssued "& )u"s favor. )u" retur&ed te *e*> to Re%es a&d dema&ded a *as pa%me&t of "ts fa*e value. ur"ous over te "&*"de&t, Re%es pro*eeded to $"l"p"&as =a&> a&d ur#ed a& "mmed"ate ver"f"*at"o& of "s a**ou&t. /t as te& tat te a&> &ot"*ed te error. )e 32> posted "& Amadors a**ou&t as tra&sferred to Re%es a**ou&t upo& e"&# *leared % te former tat e d"d &ot effe*t a depos"t of 32>. )e a&> te& o&ored te *e*>. R)C ordered $"l"p"&as =a&> to pa% dama#es to Re%es, a&d te CA aff"rmed te R)C.

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PROXIMATE CAUSE OF INJURY: ALAASI!S NELIENCE IN ERRONEOUSLY POSTIN REYES! CAS" #EPOSIT IN T"E NAME OF ANOT"ER #EPOSITOR "A$IN T"E SAME FIRST NAME or NCC %&'( to appl%, "t must e estal"sed tat Re%es o& &e#l"#e&*e as te

"mmed"ate a&d pro"mate *ause of "s "&Dur%. P)*+i,a- /a0s  + a&% *ause "*, "& &atural a&d *o&t"&uous seue&*e, u&ro>e& % a&% eff"*"e&t "&terve&"&# *ause, produ*es te result *ompla"&ed of a&d "tout "* ould &ot ave o**urred a&d from "* "t ou#t to ave ee& foresee& or reaso&al% a&t"*"pated % a perso& of ord"&ar% *ase tat te "&Dur% *ompla"&ed of or some s"m"lar "&Dur%, ould result terefrom as a &atural a&d proale *o&seue&*e. Ala1asi 2aild -* +)/is d1) *2 /a) )30i)d in -4 p)2*),an/ *2 4is d0-is

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e posted te *as depos"t "& Amadors a**ou&t from te assumpt"o& tat te &ame lore&*"o appear"&# o& te led#er "tout #o"&# trou# te full &ame, "s te same lore&*"o stated "& te depos"t sl"p e sould ave *o&t"&uousl% #o&e e%o&d mere assumpt"o& a&d pro*eeded "t *lear *erta"&t%, *o&s"der"&# te amou&t "&volved a&d te reper*uss"o&s "t ould *reate a&d )rust Compa&%0, $et"t"o&er, vs. $HRMANHN) MHS, /NCR$RA)H, Respo&de&t. AC)S )e re*ords d"s*lose tat $HRMANHN) MHS "s a real estate developme&t *ompa&%, a&d to f"&a&*e "ts ous"&# proDe*t >&o& as te :=ue&a "da )o&ome lo*ated "t"& Merv"lle Sud"v"s"o&, $araVaue C"t%, "t appl"ed a&d as suseue&tl% #ra&ted % S/=ANJ "t a& :m&"us "&e *red"t fa*"l"t% "& te total amou&t of S/W) M//N $HSS. f te e&t"re loa&, /) N/NH M//N as t"me loa& for a term of up to tree u&dred s"t% (36'0 da%s, "t "&terest tereo& at preva"l"&# mar>et rates, a&d suDe*t to mo&tl% repr"*"&#. )e rema"&"&# NH M//N as ava"lale for domest"* "lls pur*ase. )o se*ure te aforesa"d loa&, $HRMANHN) MHS "&"t"all% mort#a#ed tree(30 to&ouse u&"ts "t"& te =ue&a "da proDe*t "& $araVaue. At te t"me, oever, te "&sta&t *ompla"&t as f"led a#a"&st S/=ANJ, a total of t"rt% s" (360 to&ouse u&"ts ere mort#a#ed "t sa"d a&>. f te 6' m"ll"o& ava"lale to $HRMANHN) MHS, "t ava"led of a total of 

41.5 m"ll"o& pesos *overed % tree(30 prom"ssor% &otes. )ere as a sta&d"&# a#reeme&t % te part"es tat a&% "&*rease or de*rease "& "&terest rates sall e suDe*t to te mutual a#reeme&t of te part"es. or te tree loa& ava"lme&ts tat $HRMANHN) MHS ota"&ed, te ere"& respo&de&t ar#ued tat S/=ANJ u&"laterall% a&d ar"trar"l% a**elerated te "&terest rates "tout a&% de*lared as"s of su* "&*reases, of "* $HRMANHN) MHS ad &ot a#reed to, or at te ver% least, ee& "&formed of. & Bul% 5, 2''2, te tr"al *ourt promul#ated "ts e*"s"o& "& favor of Sol"da&>. $erma&e&t te& f"led a& appeal efore te appellate *ourt "* as #ra&ted, "& "* reversed a&d set as"de te assa"led de*"s"o& dated Bul% 5, 2''2. e&*e, te prese&t pet"t"o&. /SS-HS (10 @N te o&orale Court of  Appeals as *orre*t "& rul"&# tat te "&*reases "& te "&terest rates o& $erma&e&ts loa&s are vo"d for av"&# ee& u&"laterall% "mposed "tout as"s. (20 @N te o&orale Court of Appeals as *orre*t "& order"&# te part"es to e&ter "&to a& epress a#reeme&t re#ard"&# te appl"*ale "&terest rates o& $erma&e&ts loa& ava"lme&ts suseue&t to te "&"t"al t"rt% "* as *ased % $N= a&d d"so&ored % "&sular treasurer. )e outsta&d"&# ala&*e of Att%. Gullas o& te oo>s of te a&> as $5'9. Gullas left "s res"de&*e for Ma&"la so te &ot"*es of d"so&or, "&form"&# "m tat te amou&t of X366 as appl"ed to "s outsta&d"&# ala&*e, as &ot re*e"ved % "m. -po& "s retur& from Ceu, e pa"d te ala&*e "&*o&ve&"e&*e to "s a**ou&t, "* are te "&sura&*e u&pa"d due to la*> of *red"t a&d te per"od"*als "& te v"*"&"t%

/SS-H @eter or &ot te a&> ad te r"#t to automat"*all% *red"t Gullas a**ou&t, a&d "t as &ot preDud"*"al to "m R-/NG /t as ee& eld a lo&# l"&e of autor"t"es tat &ot"*e of d"so&or "s "& order to *ar#e all te e&dorser a&d tat te r"#t of a*t"o& a#a"&st "m does &ot a**rue u&t"l te &ot"*e "s #"ve&. A a&> as a r"#t to set off te depos"ts "& "ts a&ds for te pa%me&t of a&% "&det&ess to "& o& te part of a depos"tor. oever t"s ma% e, as to a& e&dorser te s"tuat"o& "s d"ffere&t, a&d &ot"*es sould a*tuall% ave ee& #"ve& to "m "& order tat e m"#t prote*t "s "&terests. G.R 154129 )HRHS/)A /, pet"t"o&er, vs. S$-SHS /RG// a&d - RCHS BA$R a&d MAR)AE1F BA$R, respo&de&ts Bul% 8, 2''5 Ce&tral =a&> C"r*ular No. 9'5, "* too> effe*t o& Ba&uar% 1, 1983, effe*t"vel% removed te *e"l"&# o& "&terest rates for ot se*ured a&d u&se*ured loa&s, re#ardless of matur"t%. oever, &ot"&# "& sa"d C"r*ular #ra&ts le&ders *arte la&*e autor"t% to "mpose "&terest rates "* ould result "& te e&slaveme&t of te"r orroers or to te emorra#"&# of te"r assets. @"le a st"pulated rate of "&terest ma% &ot te*&"*all% a&d &e*essar"l% e usur"ous u&der C"r*ular No. 9'5, usur% &o e"&# le#all% &o&e"se ruled tat a& "&terest rate of 67 per mo&t or !27 per a&&um "s outra#eous a&d "&ord"&ate. Co&formal% to tese pre*ede&t *ases, a *om"&ed "&terest a&d pe&alt% rate at 1'7 per mo&t or 12'7 per a&&um, sould e deemed "&"u"tous, u&*o&s*"o&ale, a&d "&ord"&ate. )e ev"de&*e sos tat "t as "&deed te respo&de&ts o proposed te 57 "&terest rate per mo&t for to (20 mo&ts. av"&# a#reed to sa"d rate, te part"es are &o estopped from *la"m"&# oter"se. or te su**eed"&# per"od after te to mo&ts, oever, te Court of  Appeals *orre*tl% redu*ed te "&terest rate to 127 per a&&um a&d te pe&alt% rate to 17 per mo&t, "& a**orda&*e "t Art"*le 222! of te C"v"l Code.

ar"o Na*ar rames

vs

Galler%

!'3 SCRA 439 + C"v"l a + )orts a&d ama#es + A*tual a&d Compe&sator% ama#es + e#al Rate of /&terest "s &o 67 aor a + aor Relat"o&s + /lle#al "sm"ssal + Computat"o& of Mo&etar% =e&ef"ts ar"o Na*ar f"led a laor *ase a#a"&st Galler% rames a&d "ts o&er el"pe =orde%, Br. Na*ar alle#ed tat e as d"sm"ssed "tout *ause % Galler% rames o& Ba&uar% 24, 199!. & *toer 15, 1998, te aor Ar"ter (A0 fou&d Galler% rames #u"lt% of "lle#al d"sm"ssal e&*e te Ar"ter aarded Na*ar $158,919.92 "& dama#es *o&s"st"&# of a*>a#es a&d separat"o& pa%.

Galler% rames appealed all te a% to te Supreme Court (SC0. )e Supreme Court aff"rmed te de*"s"o& of te aor Ar"ter a&d te de*"s"o& e*ame f"&al o& Ma% 2!, 2''2. After te f"&al"t% of te SC de*"s"o&, Na*ar f"led a mot"o& efore te A for re*omputat"o& as e alle#ed tat "s a*>a#es sould e *omputed from te t"me of "s "lle#al d"sm"ssal (Ba&uar% 24, 199!0 u&t"l te f"&al"t% of te SC de*"s"o& (Ma% 2!, 2''20 "t "&terest. )e A de&"ed te mot"o& as e ruled tat te re*>o&"&# po"&t of te *omputat"o& sould o&l% e from te t"me Na*ar as "lle#all% d"sm"ssed (Ba&uar% 24, 199!0 u&t"l te de*"s"o& of te A (*toer 15, 19980. )e A reaso&ed tat te sa"d date sould e te re*>o&"&# po"&t e*ause Na*ar d"d &ot appeal e&*e as to "m, tat de*"s"o& e*ame f"&al a&d ee*utor%. /SS-H @eter or &ot te aor Ar"ter "s *orre*t. H No. )ere are to parts of a de*"s"o& e& "t *omes to "lle#al d"sm"ssal *ases (referr"&# to *ases ere te d"sm"ssed emplo%ee "&s, or loses ut "&s o& appeal0. )e f"rst part "s te rul"&# tat te emplo%ee as "lle#all% d"sm"ssed. )"s "s "mmed"atel% f"&al eve& "f te emplo%er appeals + ut "ll e reversed "f emplo%er "&s o& appeal. )e se*o&d part "s te rul"&# o& te aard of a*>a#es a&dIor separat"o& pa%. or a*>a#es, "t "ll e *omputed from te date of "lle#al d"sm"ssal u&t"l te date of te de*"s"o& of te aor Ar"ter. =ut "f te emplo%er appeals, te& te e&d date sall e ete&ded u&t"l te da% e& te appellate *ourts de*"s"o& sall e*ome f"&al. e&*e, as a *o&seue&*e, te l"a"l"t% of te emplo%er, "f e loses o& appeal, "ll "&*rease + t"s "s Dust ut a r"s> tat te emplo%er *a&&ot avo"d e& "t *o&t"&ued to see> re*ourses a#a"&st te aor Ar"ters de*"s"o&. )"s "s also "& a**orda&*e "t Art"*le 2!9 of te aor Code. A&e&t te "ssue of aard of "&terest "& te form of a*tual or *ompe&sator% dama#es, te Supreme Court ruled tat te old *ase of Haster& S"pp"&# "&es vs CA "s alread% mod"f"ed % te promul#at"o& of te =a&#>o Se&tral &# $"l"p"&as Mo&etar% =oard Resolut"o& No. !96 "* loered te le#al rate of "&terest from 127 to 67. Spe*"f"*all%, te rules o& "&terest are &o as follos 1. Mo&etar% l"#at"o&s e. oa&s a. /f st"pulated "& r"t"&#

a.1. sall ru& from date of Dud"*"al dema&d (f"l"&# of te *ase0 a.2. rate of "&terest sall e tat amou&t st"pulated . /f &ot st"pulated "& r"t"&# .1. sall ru& from date of default (e"ter fa"lure to pa% upo& etra