218-Rutter Vs Esteban 93 PHIL 68
218-Rutter Vs Esteban 93 PHIL 68
218-Rutter Vs Esteban 93 PHIL 68
Facts:
On August 20,1941 Rutter sold to Esteban two parcels of land situated in the Manila for
P9,600 of which P4,800 were paid outright, and the balance was made payable as follows: P2,400 on
or before August 7, 1942, and P2,400 on or before August 27, 1943, with interest at the rate of 7
percent per annum. To secure the payment of said balance of P4,800, a first mortgage has been
constituted in favor of the plaintiff. Esteban failed to pay the two installments as agreed upon, as
well as the interest that had accrued and so Rutter instituted an action to recover the balance due,
the interest due and the attorney's fees. The complaint also contains a prayer for sale of the
properties mortgaged in accordance with law. Esteban claims that this is a prewar obligation
contracted and that he is a war sufferer, having filed his claim with the Philippine War Damage
Commission for the losses he had suffered as a consequence of the last war; and that under section
2 of RA 342(moratorium law), payment of his obligation cannot be enforced until after the lapse of
eight years. The complaint was dismissed. A motion for recon was made which assails the
constitutionality of RA 342.
Issue:
Held: