Loon Diaz and Associates

08/08/2025

Supreme Court Associate Justice Ramon Paul Hernando said being a good lawyer is no longer determined by the number of court victories, but by the number of cases that are not filed and settled out of court through mediation or arbitration.

03/01/2025

The Supreme Court reiterated that while lenders can acquire properties used as loan collateral, ownership cannot automatically transfer to them.

The SC explained that pactum commissorium occurs when (1) a property is used as collateral for a loan; and (2) the loan agreement includes a provision automatically transferring ownership of the collateral to the lender if the borrower fails to pay.

The SC emphasized that pactum commissorium is prohibited to protect borrowers from losing properties that may be worth more than their debt. Ownership can only be transferred through foreclosure and a public auction.

However, the SC clarified that this prohibition only applies to automatic transfers of ownership. Borrowers are free to voluntarily sell their collateral to lenders as repayment.

In this case, the realty corporation willingly entered into a separate agreement to sell its properties to the lenders as payment for the loan. The SC ruled that this was not an automatic transfer and, therefore, did not violate the prohibition against pactum commissorium.

The Decision is from the SC First Division, penned by Chief Justice Alexander G. Gesmundo.

Read the full text of the press release at:
https://sc.judiciary.gov.ph/sc-automatic-transfer-of-collateral-for-loan-repayment-prohibited/

Read the full text of the Decision at:
https://sc.judiciary.gov.ph/217368-ruby-shelter-builders-and-realty-development-corporation-vs-romeo-y-tan-et-al/



Copying of this content is subject to the SC PIO’s Credit Attribution Policy: https://sc.judiciary.gov.ph/credit-attribution-policy/

12/09/2024

😆😆😆😆😆

Per page po kasi ang bayad lol

26/04/2024

We are hiring legal assistant to our law office at GMC Plaza Bldg., Legaspi Extn. corner M.J. Cuenco Ave., Cebu City. Email your resume to [email protected]

18/02/2024

17/02/2024

Matthew 6:19-20.

19. Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal:

20. But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal:

21. For where your treasure is, there will your heart be also.

23/10/2023

“. . . The High Court, in its decision, rejected Zulueta’s petition and emphasized that while the general rule is that ownership of a mark is acquired through the “first-to-file” rule, applications tainted with bad faith are void from the outset . . .”

Cyma's trademark battle began after the partnership between chef Robby Goco and Manuel Zulueta fell apart

11/06/2023

Something new :-D

16/01/2023

20/08/2022

🤣😆🤣😆🤣

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