GR No.

178610 November 17, 2010

HSBCL-SRP vs. Spouses Broqueza

Facts:

- Gerong and EdithaBroqueza are employees of HSBC and thus, are also member of HSBCL-
SRP (retirement plan).
- On Oct. 1, 1990, Broqueza obtained a car loan for Php 175,000.00 and an appliance loan for
Php 24,000.00 on Dec. 12, 1991. While Gerong obtained an emergency loan of Php
35,780.00 on June 2, 1993. The loans are paid through automatic salary deduction.
- In 1993, a labor dispute arose between HSBC and its employees which resulted to
termination of employees wherein Broqueza and Gerong were among those terminated
leading to a separate civil case for illegal dismissal before the NLRC.
- Because of the dismissal, Broqueza and Gerong were not able to pay the monthly
amortizations of their loans. Thus, HSBCL-SRP considered the accounts to be delinquent and
demanded payment from petitioners to which they failed to pay.
- HSBCL-SRP then filed civil actions for recovery and collection of sums of money.
- Written in the promissory notes was “payable on or before until fully paid with interest
payable monthly”.
- MeTC’s decision was in favor of the HSBCL-SRP ruling that the loans secured by the future
retirement benefits to which the employees are no longer entitled are reduced to unsecured
and pure civil obligations and therefore immediately demandable.
- RTC affirmed MetC’s decision in toto.
- CA, on the other hand, reversed said decision ruling that the complaints against Gerong and
Broqueza are premature as the loan obligations have not yet matured. Thus, no cause of
action accrued in favor of HSBCL-SRP.
- On August 6, 2007, petition against Gerong was withdrawn because she already settled her
obligations.
- Thus, this petition for review of the decision of CA.

Issue:

- WON the obligation is a pure obligation?

Ruling:

- SC ruled that the obligation was indeed that of a pure obligation in accordance with Art.
1179 par. 1 of the Civil Code:

Art. 1179. Every obligation whose performance does not depend upon a future or uncertain event,
or upon a past event unknown to the parties, is demandable at once.

- There is no date of payment indicated in the promissory notes, therefore HSBCL-SRP has the
right to demand immediate payment.
- The payroll deduction is merely a convenient mode of payment and not the sole source of
payment for the loans. HSBCL-SRP can immediately demand payment of the loans at any
time because the obligation to pay has no period. Moreover, Broqueza have already
incurred in default in paying the monthly installments.