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United Planters Sugar Milling Co., Inc. (UPSUMCO) Vs. Court of Appeals (RESOLUTION)

UNITED PLANTERS SUGAR MILLING CO., INC., (UPSUMCO), Petitioners, versus THE HONORABLE COURT OF OF APPEALS, PHILIPPINE NATIONAL BANK (PNB) and ASSET PRIVATIZATION TRUST (APT), AS TRUSTEE OF THE REPUBLIC OF THE PHILIPPINES, Respondents.

G.R. No. 126890 | 2009-04-02

R E S O L U T I O N

Tinga, J.:

In 1987, the Republic of the Philippines lost around 1.5 Billion Pesos after it had waived its right to collect on an outstanding indebtedness from petitioner, by virtue of a so-called "friendly foreclosure agreement" that ultimately was friendly only to petitioner. The efficacy of such waiver is now beyond dispute, but the Court has the opportunity to regretfully mitigate the losses sustained by the government through means no more exotic than insisting upon the interpretation of contracts according to the plain terms expressed therein.

I.

The following statement of facts are drawn from the Decision of the...