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State Investment House vs CA, Lomuyon Timber, et al

STATE INVESTMENT HOUSE, INC., petitioner, vs. COURT OF APPEALS, LOMUYON TIMBER INDUSTRIES, INC., AMANDA MALONJAO and RUFINO MALONJAO, respondents.

G.R. No. 112590.* | 2001-07-12

D E C I S I O N

KAPUNAN, J.:

This is a petition for review of the decision of the Court of Appeals affirming in toto the decision of the Regional Trial Court, National Capital Region, Branch 38 in Civil Case No. 83-18464 for a sum of money.

The undisputed facts, as quoted from the respondent court's decision are as follows:

On March 9, 1978, Lomuyon Timber Industries, Inc. (hereafter, Lomuyon) agreed to sell to plaintiff its "receivables" at a discount on a with recourse basis (Exh. "A"). It was agreed in that sale that should a receivable remain unpaid, plaintiff, at its discretion, may impose a penalty fee of 3% per month. To secure...