8/13/2019 C2_1 Pineda v Dela Rama

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G.R. No. L-31831 April 28, 1983

JESUS PINEDA, petitioner,vs.

JOSE V. DELA RAMA !" COUR# O$APPEALS, respondents.

$AC#S

Dela Rama is a practising lawyer whose serviceswere retained by Pineda for the purpose ofmaking representations with the chairman andgeneral manager of the National Rice and CornAdministration NAR!C" to stop or delay theinstitution of criminal charges against Pinedawho allegedly misappropriated ##,$$$ cavansof palay deposited at his ricemill in

Concepcion, %arlac. %he NAR!C generalmanager was allegedly an intimate (uh-huh!) friend of Dela Rama.

According to Dela Rama, petitioner Pineda hasused up all his funds to buy a big hacienda in&indoro and, therefore, borrowed theP',($$.$$ sub)ect of his complaint forcollection (subject of the PN. Ingon man gud sidela Rama nga gihatag daw niya ni nga amountsa GM sa NRI" #am#adulas" suhol). !naddition to filling the suit to collect the loanevidenced by the matured promissory note,

Dela Rama also sued to collect P*,$$$.$$attorney+s fees for legal services rendered asPineda+s counsel in the case being investigatedby NAR!C.

%he Court of irst !nstance of &anila decided infavor of petitioner Pineda. %he court believedthe evidence of Pineda that he signed thepromissory note for P',($$.$$ only becauseDela Rama had told him that this amount hadalready been advanced to grease the palms ofthe Chairman and -eneral &anager of NAR!C inorder to save Pineda from criminal prosecution.

%he trial court rendered )udgment as follows

/01R12R1, the Court finds by apreponderance of evidence that the amount ofP',($$.$$ evidenced by 13hibit A was notreceived by the defendant, nor given to anyparty for the defendant+s benefit.Conse4uently, the plaintiff has no right to

recover said amount. %he amount of P(,$$$.$$was given by 5the defendant to grease thepalms of the NAR!C officials. %he purpose wasillegal, null and void. 6esides, it was not givenat all, nor was it true that there was acontemplated case against the defendant. 7uchamount should be returned to the defendant.%he services rendered by the plaintiff to thedefendant is worth only P8$$.$$, taking intoconsideration that the plaintiff received an air9conditioner and si3 sacks of rice. %he courtorders that the plaintiff should return to thedefendant the amount of P(,$$$.$$, minusP8$$.$$ plus costs.

%he Court of Appeals reversed the decision ofthe trial court on a finding that Pineda, being aperson of more than average intelligence,astute in business, and wise in the ways of men

would not :sign any document or paper with hisname unless he was fully aware of the contentsand important thereof, knowing as he musthave known that the language and practices ofbusiness and of trade and commerce call toaccount every careless or thoughtless word ordeed.:

ISSUE%

/as the presumption that a promissory notewas issued for a valuable considerationconclusive;

&ELD%

/e find this petition meritorious.

%he Court of Appeals relied on the efficacy ofthe promissory note for its decision, citing7ection

8/13/2019 C2_1 Pineda v Dela Rama

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According to Dela Rama, he loaned theP',($$.$$ to Pineda in two installments on twooccasions five days apart 9 first loan forP*,$$$.$$ and second loan for P8,($$.$$, bothgiven in cash. 0e also alleged that previouslyhe loaned P(,$$$.$$ but Pineda paid this otherloan two days afterward.

%hese allegations of Dela Rama are belied bythe promissory note itself. %he second sentenceof the note reads 9 :%his represents the cashadvances made by him in connection with mycase for which he is my attorney9in9 law.:

%he terms of the note sustain the version ofPineda that he signed the P',($$.$$ promissorynote because he believed Dela Rama+s storythat these amounts had already been advancedby Dela Rama and given as gifts for NAR!C

officials.

/e agree with the trial court which believedPineda. !t is indeed unusual for a lawyer to lendmoney to his client whom he had known foronly three months, with no security for theloan and on interest. Dela Rama testified thathe did not even know what Pineda was going todo with the money he borrowed from him. %hepetitioner had )ust purchased a hacienda in&indoro for P