CF SHARP & CO., INC. V. NORTHWEST AIRLINES, INC. 381 SCRA 314

CF SHARP & CO., INC. V. NORTHWEST AIRLINES, INC.  
381 SCRA 314

FACTS:

Petitioner  was  authorized  to  sell  tickets  of  Northwest  Airlines-Japan,  but failed  to  remit  the  proceeds.    This  prompted  NWA  to  file  suit  against petitioner  in  Tokyo  and  judgment  was  rendered  in  its  favor.    Thereafter, the  RTC  issued  a  writ  of  execution  for  foreign  court’s  decision.    The petitioner  filed  for  certiorari,  asserting  it  has  already  made  partial payments.  The  CA  lowered  the  amount  to  be  paid  and  included  in  its decision that the amount may be paid in local currency at rate prevailing at time of payment.
 

HELD:

Under  RA  529,  stipulations  on  the  satisfaction  of  obligations  in  foreign currency  are  void.  Payments  of  monetary  obligations,  subject  to  certain exceptions, shall be discharged in the currency which is the legal tender of the Philippines.  But since the law doesn't provide for the rate of exchange for   the   payment   of   foreign   currency   obligations   incurred   after   its enactment,  jurisprudence  held  that  the  exchange  rate  should  be  the prevailing rate at time of payment.  This law has been amended, allowing payments  for  obligations  to  be  made  in  currency  other  than  Philippine currency  but  then  again,  it  failed  to  state  what  the  exchange  rate  that should be used.  This being the case the jurisprudence regarding the use of the exchange rate at time of payment shall be used.