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Sycip vs Court of Appeals
G.R. No. 12059
March 17, 2000
On August 24, 1989, Francisco T. Sycip, Jr., agreed to buy, on installment, from Francel Realty Corporation (FRC), a townhouse unit in the latter’s project at Bacoor, Cavite. Upon execution of the contract to sell, as required, issued to FRC, forty-eight (48) postdated checks, each in the amount of P9,304.00, covering 48 monthly installments.
After moving in his unit, Sycip complained, to FRC regarding defects in the unit and incomplete features of the townhouse project. FRC ignored the complaint. Dissatisfied, Sycip served on FRC two (2) notorial notices to the effect that he was suspending his installment payments on the unit pending compliance with the project plans and specifications, as approved by the Housing and Land Use Regulatory Board (HLURB). Sycip and twelve (12) out of fourteen (14) unit buyers then filed a complaint with the HLURB. The complaint was dismissed as to the defect, but FRC was ordered by the HLURB to finish all incomplete features of its townhouse project. Sycip appealed the dismissal of the complaint as to the alleged defects.
Notwithstanding the notorial notices, FRC continued to present for encashment Sycip’s postdated checks in its possession. Sycip sent “stop payment orders” to the bank. When FRC continued to present the other postdated checks to the bank as the due date fell, the bank advised Sycip to close his checking account to avoid paying bank charges every time he made a “stop payment” order on the forthcoming checks. Due to the closure of peti