CIVIL PROCEDURE Practical Exercise (50 pts)

Case:

Esteban S. Cudero lent two of his friends, Ana T. Cruz and Claro M. Francisco, the amount of P500,000 when they met in Cebu City last April 30, 2007. The money was used to pay for the hospitalization of Anna T. Cruz, who underwent surgery in Cebu City also last April 30, 2007. However, both Ana and Claro, who were in a de facto relationship, were able to execute a promissory note, secured by a chattel mortgage on Claros 2005 Honda Civic, when they arrived in Dumaguete. When the promissory note became due last May 7, 2010, Esteban demanded payment in a letter dated June 25, 2010. However, despite repeated oral and written demands for payment, Ana and Claro failed and or refused to pay. Because of non-payment of the debt Esteban S. Cudero suffered worries and comes to your help.

Other facts: 1. Esteban S. Cudero is of legal single, Filipino, and a resident of Piapi, Dumaguete City; 2. Anna t Cruz is married to Regino Cruz, Filipino and is a resident of Burgos Street, Bais City; 3. Claro M. Francisco, an American citizen, separated from his Filipino spouse, Lita Flores and temporarily a resident of San Juan, Siquijor;

The Promissory Note given reads:

PROMISSORY NOTE For value received, WE, ANA T. CRUZ and CLARO M. FRANCISCO, do hereby promise to pay to the order of Esteban S. Cudero at his resident in Dumaguete City, the amount of P500,000 on or before May 7, 2010. This note shall earn an interest of 12% per annum in case of delay. Dumaguete City, May 7, 2007.

ANA T. CRUZ (sgd)

CLARO M. FRANCISCO (sgd)