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Philippine Bank of Communications vs. Juan F. Echiverri, et al.

PHILIPPINE BANK OF COMMUNICATIONS, petitioner, vs. HON. JUAN F. ECHIVERRI, in his capacity as Presiding Judge of Branch XIV of the Court of First Instance of Manila, ENRIQUE LORENZO y JIONGCO, CONRADO GALVEZ y CERVANTES, FAUSTINO CARLOS y RAMOS, ARSENIO LORENZO y VILLALUZ, ILDEFONSO CARI?O y MARASIGAN, FELIZARDO ALBAIRA and RICARDO CARLOS. respondents.

G.R. No. L-41795 | 1980-08-29

D E C I S I O N


TEEHANKEE, J.:

The Court sets aside the decision of respondent court insofar as it modifies and alters the compromise agreement freely entered into between petitioner bank and private respondents by deleting the concessions made by respondents. The validity of the compromise agreement in toto is upheld, since its provisions are not prohibited by law nor condemned by judicial decision nor contrary to morals, good customs and public policy. By virtue of the fundamental precept that a compromise agreement is a contract between the parties and has upon them the effect and authority of res judicata, the courts cannot impose...