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Spouses Limso vs. Philippine National Bank

SPOUSES ROBERT ALAN L. AND NANCY LEE LIMSO, PETITIONERS, VS. PHILIPPINE NATIONAL BANK AND THE REGISTER OF DEEDS OF DAVAO CITY, RESPONDENTS. [G.R. NO. 169441] DAVAO SUNRISE INVESTMENT AND DEVELOPMENT CORPORATION AND SPOUSES ROBERT ALAN AND NANCY LIMSO, PETITIONERS, VS. HON. JESUS V. QUITAIN, IN HIS CAPACITY AS PRESIDING JUDGE OF REGIONAL TRIAL COURT, DAVAO CITY, BRANCH 15 AND PHILIPPINE NATIONAL BANK, RESPONDENTS. [G.R. NO. 172958] DAVAO SUNRISE INVESTMENT AND DEVELOPMENT CORPORATION REPRESENTED BY ITS PRESIDENT ROBERT ALAN L. LIMSO, AND SPOUSES ROBERT ALAN AND NANCY LEE LIMSO, PETITIONERS, VS. HON. JESUS V. QUITAIN, IN HIS CAPACITY AS PRESIDING JUDGE OF REGIONAL TRIAL COURT, DAVAO CITY, BRANCH 15 AND PHILIPPINE NATIONAL BANK, RESPONDENTS. [G.R. NO. 173194] PHILIPPINE NATIONAL BANK, PETITIONER, VS. DAVAO SUNRISE INVESTMENT AND DEVELOPMENT CORPORATION AND SPOUSES ROBERT ALAN LIMSO AND NANCY LEE LIMSO, RESPONDENTS. [G.R. NO. 196958] PHILIPPINE NATIONAL BANK, PETITIONER, VS. DAVAO SUNRISE INVESTMENT AND DEVELOPMENT CORPORATION AND SPOUSES ROBERT ALAN L. LIMSO AND NANCY LEE LIMSO, RESPONDENTS. [G.R. NO. 197120] DAVAO SUNRISE INVESTMENT AND DEVELOPMENT CORPORATION AND SPOUSES ROBERT ALAN AND NANCY LEE LIMSO, PETITIONERS, VS. PHILIPPINE NATIONAL BANK, RESPONDENT. [G.R. NO. 205463] IN THE MATTER OF THE PETITION EX-PARTE FOR THE ISSUANCE OF THE WRIT OF POSSESSION UNDER LRC RECORD NO. 12973, 18031 AND LRC RECORD NO. 317, PHILIPPINE NATIONAL BANK,

G.R. No. 158622 | 2016-01-27

D E C I S I O N
 
LEONEN, J.:
 
There is no mutuality of contract when the interest rate in a loan agreement is set at the sole discretion of one party. Nor is there any mutuality when there is no reasonable means by which the other party can determine the applicable interest rate. These types of interest rates stipulated in the loan agreement are null and void. However, the nullity of the stipulated interest rate does not automatically nullify the provision requiring payment of interest. Certainly, it does not nullify the obligation to pay the principal loan obligation.

These consolidated cases arose from three related actions filed...