Intestate of Luther Young and Pacita Young, spouses. PACIFICA JIMENEZ vs. DR. JOSE BUCOY - G.R. No. L-10221

Intestate of Luther Young and Pacita Young, spouses. PACIFICA JIMENEZ vs.

DR. JOSE BUCOY

G.R. No. L-10221             February 28, 1958

In the proceedings in the intestate of Luther Young and Pacita Young who died in 1954 and 1952, respectively, Pacifica Jimenez presented for payment 4 promissory notes signed by Pacita for different amounts totalling P21,000. Acknowledging receipt by Pacita during the Japanese occupation, in the currency then prevailing, the Administrator manifested willingness to pay provided adjustment of the sums be made in line with the Ballantyne schedule. The claimant objected to the adjustment insisting on full payment in accordance with the notes. The court held that the notes should be paid in the currency prevailing after the war, and thus entitling Jimemez to recover P21,000 plus P2,000 as attorney’s fees. Hence, the appeal.

Issue: Whether or not the amounts should be paid, peso for peso; or whether a reduction should be made in accordance with the Ballantyne schedule.

Held: If the loan was expressly agreed to be payable only after the war, or after liberation, or became payable after those dates, no reduction could be effected, and peso-for-peso payment shall be ordered in Philippine currency. The Ballantyne Conversion Table does not apply where the monetary obligation, under the contract, was not payable during the Japanese occupation. Herein, the debtor undertook to pay “six months after the war,” peso for peso payment is indicated.