Sec 24-50 NIL Cases | SAMPANG

1.) Pineda v De la Rama

Facts: Decision of the CA declared Jesus Pineda liable on his promissory note for the amount of 9,300.00.
Dela Rama is a lawyer who represented Pineda in a case against Naric. Pineda was alleged to have misappropriated
100k cavans of palay in Tarlac. The GM of NARIC was an intimate friend of the lawyer.
Accdg. To Dela Rama, Pineda used the funds to buy a hacienda in Mindoro and (1)borrowed the 9300 subject of his
complaint for collection suit. (2) Dela Rama also wanted to collect 5-00 attorney’s fees.
CFI – in favour of PINEDA – court believed him that he only signed because he was told to sign by Dela Rama and
that he did not receive the amount stated therein because according to said exhibit that amount was advanced by
the plaintiff in connection with the defendant's case, entirely contradicting the testimony of the plaintiff himself,
who stated in open Court that he gave the amount in cash in two installments to the defendant.
CA – reversed the decision- finding that Pineda, being a person of more than average intelligence,won’t "sign any
document or paper with his name unless he was fully aware of the contents…”
CA relied on "SECTION 24. Presumption of consideration.— Every negotiable instrument is deemed prima facie to
have been issued for a valuable consideration; and every person whose signature appears thereon to have become
a party thereto for value."
SC – The CA is REVERSED!
Presumption is prima facie only and may be rebutted by contrary evidence.
a. According to Dela Rama, loaned the P9,300.00 to Pineda in two installments (1) first loan for P5,000.00 and
(2) second loan for P4,300.00, both given in cash.
b. He also alleged that previously he loaned P3,000.00 but Pineda paid this other loan two days afterward.
c. These allegations of Dela Rama are belied by the promissory note itself. The second sentence of the note
reads— "This represents the cash advances made by him in connection with my case for which he is my
attorney-in-law."
d. The terms of the note sustain the version of Pineda that he signed the P9,300.00 promissory note because
he believed Dela Rama's story that these amounts had already been advanced by Dela Rama and given as
gifts for NARIC officials.
e.