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Bank of the Phil. Islands Vs. Sps. Reynaldo and Victoria Royeca

BANK OF THE PHILIPPINE ISLANDS, Petitioner, versus SPOUSES REYNALDO AND VICTORIA ROYECA, Respondents.

G.R. No. 176664 | 2008-07-21

D E C I S I O N


NACHURA, J.:

Bank of the Philippine Islands (BPI) seeks a review of the Court of Appeals (CA) Decision[1] dated July 12, 2006, and Resolution[2] dated February 13, 2007, which dismissed its complaint for replevin and damages and granted the respondents' counterclaim for damages.

The case stems from the following undisputed facts:

On August 23, 1993, spouses Reynaldo and Victoria Royeca (respondents) executed and delivered to Toyota Shaw, Inc. a Promissory Note[3] for P577,008.00 payable in 48 equal monthly installments of P12,021.00, with a maturity date of August 18, 1997. The Promissory Note provides for a penalty of...