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Lara's Gifts & Decors, Inc. vs. Midtown Industrial Sales, Inc. [CONCURRING AND DISSENTING OPINION LEONEN, J.]

LARA'S GIFTS & DECORS, INC., PETITIONER, VS. MIDTOWN INDUSTRIAL SALES, INC., RESPONDENT.

G.R. No. 225433 | 2019-08-28

CONCURRING AND DISSENTING OPINION

LEONEN, J.:

I concur with the  ponencia that the 24% stipulated interest should apply to the unpaid principal obligation of respondent Midtown Industrial Sales, Inc. Such is in accordance with Article 1308 of the Civil Code and jurisprudential pronouncements on the binding force of contracts—not otherwise contrary to law, morals, good customs, or public policy—between contracting parties.

However, I dissent from the application of an interest rate of 12%/6% on the 24% interest, as reckoned from the date of judicial demand until full payment. Compounding the interest at 12%/6% would...