Legal Insights
Plain-language guides and case briefs on Philippine law — researched from the firm's law library of 184,000+ statutes, Supreme Court decisions, and agency issuances, and written so non-lawyers can understand and act on them.
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When a Sale-Leaseback Is Really a Loan: Cebu Contractors Consortium v. Court of Appeals
The Supreme Court ruled that a sale-leaseback arrangement was actually an equitable mortgage, not a true financing lease, and ordered the contract reformed.
Compulsory vs Permissive Counterclaims: When Court Fees Are Not Required in Loan Disputes
Learn when a counterclaim in a loan dispute is compulsory and exempt from docket fees, based on a 2003 Supreme Court ruling.
Mortgage Release: Full Payment Trumps Bank's Restructuring Claim
Full payment of a loan obliges a bank to release the mortgage. The Supreme Court clarifies when a bank's restructuring claim fails.
Distinguishing Loan From Accommodation When Bank Negligence Leads to Liability
When is a deposit a loan or a mere accommodation? The Supreme Court clarifies the distinction and when banks face liability for employee negligence.
Court Employee Reprimanded for Willful Failure to Pay Just Debts
Supreme Court rules on administrative liability of court employee who refused to pay cooperative loans, citing ethical standards.
Negligence in Guaranteeing Loans: A Public Official's Duty of Care
Court employee suspended for negligently guaranteeing loans for an impostor. Learn the duty of care for public officials.
Mortgage Foreclosure After Full Payment Is Void: PNB v. Court of Appeals
A mortgage foreclosure is void if the loan it secures was already paid. Learn the rules from this Philippine Supreme Court case.
Unraveling Behest Loans Discovery Rule AND Ombudsmans Discretion
Checks as Guarantee in Loan Agreements: No Estafa Without Deceit
Supreme Court clarifies that postdated checks as loan guarantees do not constitute estafa absent proof of fraud or deceit.
Untangling Behest Loans, Prescription, and the Ombudsman's Discretion in PCGG v. Desierto
The Supreme Court clarifies when behest loan cases prescribe and limits the Ombudsman's dismissal power in PCGG v. Desierto.
Interest Rate Clarity Ensuring Written Agreements Govern Loan Terms
The Supreme Court held that absent a written stipulation, a loan’s agreed interest rate stops at maturity, and 12% legal interest applies thereafter.
Usury Law Suspension, Freedom to Contract, and Unconscionable Interest Rates in Loan Agreements
Philippine Supreme Court ruling on whether courts can reduce interest rates agreed upon by parties after the Usury Law suspension.
Loan or Partnership: Supreme Court on Novation and Acknowledgment Receipts
When does a loan become a partnership contribution? The Supreme Court clarifies novation, acknowledgment receipts, and payment application rules.
Usurious Loans and Mortgage Validity When Interest Exceeds Legal Limits in the Philippines
Philippine Supreme Court ruling on usurious loans: when hidden interest voids a mortgage and what borrowers and lenders should know.
Usury Law and Mortgage Foreclosure: Protecting Borrowers From Excessive Interest
When a loan's hidden interest exceeds the Usury Law's 12% cap, the mortgage securing it may be void, and foreclosure invalid.
Lawyer Suspended for Misappropriating Client Funds in Loan Restructuring Scheme
A lawyer's six-month suspension for misappropriating P60,000 in client funds and fabricating a PNB connection underscores ethical duties.
Perfecting A Loan Delivery IS KEY To Mortgage Foreclosure
A loan is perfected only upon delivery of money. Foreclosing before that makes the foreclosure premature and exposes the lender to damages.
Surety Liability Survives Loan Extensions Under Continuing Guaranty
Philippine Supreme Court ruling on whether loan extensions without a surety's consent extinguish liability under a continuing guaranty.
Due Diligence in Real Estate Mortgages: A Lender's Responsibility
Philippine Supreme Court ruling on why mortgage lenders must verify borrower identity and property status before approving real estate loans.
When a Final Judgment Still Needs Computation: Jaban v. Court of Appeals on Loan Obligations
A final judgment is not always the last word on the amount owed. Jaban v. Court of Appeals explains when courts may clarify, not amend, a decision.
Usury Under Scrutiny: How the Supreme Court Uncovers Hidden Interest in Loan Agreements
In First Metro Investment Corp. v. Este del Sol, the Supreme Court exposed underwriting and consultancy fees as cloaks for usurious interest in a 1978 loan.
Upholding Contractual Agreements: Trust Receipts and Surety Agreements in Loan Obligations
The Supreme Court reaffirms that contracts are the law between parties, enforcing stipulated interest, penalties, and service charges in trust receipt loan transactions.
Interest on Penalties: The Limits of Compounding in Loan Obligations
Philippine Supreme Court clarifies when interest may be charged on unpaid penalty charges in loan contracts, and when courts may reduce unconscionable penalties.
Behest Loans, Prescription, and Ombudsman Discretion in Anti-Graft Cases
The Supreme Court clarifies the discovery rule for behest loan offenses and the Ombudsman's broad discretion to dismiss complaints lacking probable cause.