US vs. Diaz-Conde
(42 Phil 766)
Facts:
On December 30,
1915, complainants Bartolome Oliveros and Engracia Lianco entered into a
contract with the defendants concerning a debt of P300. Oliveros and co. were
obligated to pay five percent interest per month within the first ten days of
every month. On May 6, 1921, Vicente Diaz Conde and Apolinaria R. De Conde were
charged with violating the Usury Law in the Court of First Instance of the city
of Manila. They were found guilty, sentenced to pay a fine of P120 and in case
of insolvency, to suffer subsidiary imprisonment in accordance with the
provisions of law. They took it to SC to plead.
Issues:
WoN the Usury Law
has a retroactive effect in this case
WoN the law
impaired the contract
Held and Ratio:
No. The Usury
Law, a penal law, cannot become retroactive unless it is favorable to the
person accused. (Art. 21 and 22 Penal Code)
Yes. If a
contract is legal at its inception, it cannot be rendered illegal by any
subsequent legislation.
Decision:
Judgment reversed, defendants acquitted.
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