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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Piercing the Corporate Veil: When a Corporation Cannot Escape Its Loan Obligations
The Supreme Court explains when courts may disregard corporate fiction to hold a corporation liable for loans received by its affiliates and alter egos.
Sugar Mill Loans: When Contract Terms Define Government's Right to Recover Funds
Supreme Court ruling on condonation scope in sugar mill loans, clarifying when banks and government can apply deposits to unpaid obligations.
SPV Law Notice Requirements: Protecting Debtor Rights in Asset Transfers
Learn how the SPV Law's notice requirements protect debtors when banks transfer non-performing loans to special purpose vehicles.
Redemption Rights When A Sale Disguises A Loan Equity Prevails
When a bank finances a subdivision project, it cannot ignore buyers who already paid for lots. The Supreme Court explains why.
Continuing Surety Agreements: When a Surety Is Liable for Another's Loan
Philippine Supreme Court explains continuing surety agreements and when a surety becomes liable for a principal debtor's obligations.
Equitable Mortgage: When an Absolute Sale Is Really a Loan Security
The Supreme Court explains when a deed of absolute sale is actually an equitable mortgage, and what parties must do to recover property.
Mortgage Validity Securing Loans VS Covering Unsubstantiated Debts
Fraudulent Inducement and Preliminary Attachment: Protecting Sureties From Unsubstantiated Claims
A bank's general fraud allegations cannot justify preliminary attachment against sureties who did not participate in the loan transaction.
Loan Restructuring vs Mortgage Release: When Must a Bank Return Collateral?
When a borrower restructures a loan and assigns property as partial payment, is the bank obliged to release other collateral? The Supreme Court explains.
Investment or Loan? The Estafa Trap in Misrepresented Business Ventures
When a business deal fails, is it a breach of contract or estafa? The Supreme Court clarifies when false pretenses turn a failed investment into a criminal offense.
Breach of Trust Establishing Estafa Through Misappropriated Loan Proceeds
When does failure to turn over loan proceeds become estafa? The Supreme Court explains misappropriation under Article 315.
Equitable Reduction of Interest: Protecting Borrowers from Unconscionable Loan Terms
The Supreme Court affirms courts' power to reduce unconscionable interest and penalty rates, protecting borrowers from excessive loan charges.
Behest Loans and the Ombudsman’s Discretion: Balancing Justice and Due Process in Government Transactions
The Supreme Court upholds the Ombudsman’s dismissal of behest loan charges, reinforcing the principle of non-interference in prosecutorial discretion.
Unconscionable Interest Rates: Protecting Borrowers From Excessive Loan Costs
The Supreme Court affirms that monthly interest rates of 5% to 7% are unconscionable and may be reduced to 12% per annum.
Injunctions and Insufficient Evidence: Safeguarding Property Rights in Loan Foreclosures
The Supreme Court dissolved a preliminary injunction that had blocked a bank foreclosure, ruling the borrowers failed to prove a clear legal right to protect.
Behest Loans and the Ombudsman: Probable Cause, Prescription, and the Romualdez Ruling
The Supreme Court ruled that the Ombudsman gravely abused its discretion in dismissing behest loan charges for lack of probable cause and prescription.
Unmasking Behest Loans: Government's Right to Recover Ill-Gotten Wealth Supersedes Prescriptive Timelines
The Supreme Court clarifies that behest loan offenses prescribe only upon discovery, reinforcing the government's power to recover Marcos-era ill-gotten wealth.
Loan VS Profit Share THE Supreme Courts Stance ON Proving Debt AND Ownership IN Family Businesses
Partnership vs Loan: Proving the True Nature of Money Transfers in Family Business Disputes
When is a transfer of funds a loan rather than a share of profits? The Supreme Court clarifies the rules of evidence in family business disputes.
Upholding Due Process: The Limits of Retroactive Application in Behest Loan Cases
Supreme Court affirms Ombudsman's dismissal of behest loan charges, clarifying that administrative orders defining behest loans are not penal laws and cannot retroactively criminalize past transaction
Mutuality of Contracts: The Limits of Bank Discretion in Setting Interest Rates
Philippine Supreme Court clarifies that unilateral interest rate setting violates mutuality of contracts, but the principal loan obligation remains valid and enforceable.
Dation in Payment: When Transferring Property Fully Settles a Debt
A bank accepted equipment as full payment of a loan, then sued for more. The Supreme Court explains when dation in payment extinguishes a debt.
Loan vs Malversation: When Public Funds Become Private After Ownership Transfer
When does public money stop being public? The Supreme Court clarifies how a loan transfers ownership and defeats malversation charges.
Behest Loans and Prescription: When Does the Clock Start Ticking
The Supreme Court clarifies when the prescriptive period for behest loan cases begins, ruling it starts upon discovery, not execution.