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GARON VS. PROJECT MOVERS REALTY AND DEVELOPMENT CORPORATION,GR NO. 166058, 520 SCRA 317 (2007)

FACTS On December 19, 1997, Project Movers Realty and Development Corporation (PMRDC) obtained a loan frommerita !aron in t"e amo#nt of P$,%&&,7&' $& "e loan *as covered by Promissory +ote to mat#re on December 19,199& *it" an interest of '$ per ann#m, sec#red by a lease"old ri-"ts over a space at t"e Mon#mento Pla.a CommercialComple/ o*ned by PMRDC "e parties stip#lated t"at fail#re to pay t"e note or any portion t"ereof, or any interestt"ereon, s"all constit#te defa#lt, and t"e entire obli-ation s"all become d#e and payable *it"o#t need of demand OnDecember '1, 1997, PMRDC obtained anot"er loan from !aron in t"e amo#nt of P1&9,01& 7 , at 17 per ann#m, tomat#re on December '1, 199& "e transaction *as covered by Promissory +ote "is loan *as sec#red by an assi-nmentof lease"old ri-"ts over anot"er space of t"e Mon#mento Pla.a Commercial Comple/ o sec#re its obli-ation to assi-nt"e lease"old ri-"ts to !aron, PMRDC proc#red a s#rety bond from 2tron-"old 3ns#rance Company, 3nc (23C3) to-#arantee t"e assi-nment of lease"old ri-"ts and *ill e/pire on +ovember 7, 199& and said bond *ill be cancelled fivedays after its e/piration, #nless s#rety is notified of any e/istin- obli-ations t"ere#nder 3n vie* of PMRDC4s and 23C34sfail#re to comply *it" t"eir respective obli-ations, *"en PMRDC defa#lted and #pon demand by !aron PMRDC toe/ec#te and deliver a #nilateral Deed of 5ssi-nment and for 23C3 to comply *it" its obli-ation #nder t"e s#rety bonddated +ovember ' and $, 199& respectively, !aron filed a Complaint for collection before t"e R C of Ma6ati City 23C3averred t"at t"e complaint stated no ca#se of action and *as premat#rely filed its obli-ation "ad been e/tin-#is"ed t"eliability on t"e bond "ad been disc"ar-ed by t"e act of plaintiff and by t"e act of la* and its liability on t"e bond "ad

prescribed 3t li6e*ise contended t"at at t"e time plaintiff sent t"e demand letter, t"e obli-ation -#aranteed by t"e bond"ad not yet mat#red PMRDC denied t"at it e/ec#ted t"e above8stated promissory notes and alle-ed instead t"at t"ey *eremerely roll8overs 3t also alle-ed t"at it "ad already complied *it" its #nderta6in- #nder t"e promissory notes *"en it p#t#p a s#rety bond and *"en !aron c"ose to demand from 23C3, s"e effectively *aived t"e ri-"t to claim from it PMRDCf#rt"er denied liability on t"e stip#lated interest on t"e -ro#nd t"at t"e same is e/orbitant and #nconscionable 5s aco#nterclaim, PMRDC as6ed for moral and e/emplary dama-es, as *ell as for attorney4s fees 5s and by *ay of cross8claim a-ainst 23C3, it li6e*ise demanded t"e payment of moral dama-es and attorney4s fees R C rendered its decision infavor of t"e petitioner Respondents appeal to t"e C5 a special civil action for Certiorari *it" emporary Restrainin-Order ( RO) and or :rit of Preliminary 3nj#nction assailin- t"e order of t"e co#rt -rantin- e/ec#tion pendin- appeal C5rendered its decision in favor of t"e 23C3, "o*ever, in vie* of PMRDC4s fail#re to file its appellant4s brief, t"e C5 iss#eda Resol#tion dismissin- its appeal for "avin- been abandoned "e Resol#tion became final and e/ec#tory

ISS!E :"et"er or not t"e respondent 23C3 is liable to petitioner #nder its s#rety bond

"ELD +O 3t m#st be stressed t"at t"e principal obli-ation -#aranteed by t"e s#rety bond is t"e assi-nment of t"elease"old ri-"ts of PMRDC to petitioner over t"e s#bject spaces Petitioner made a formal demand on +ovember ', 199&for PMRDC to perform t"e obli-ation, b#t t"e latter defa#lted 5s s#c", PMRDC4s liability as principal aroseConse;#ently, respondent4s liability as s#rety li6e*ise arose

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INTRA;STRATA ASS!RANCE CORPORATION *+ P"ILIPPINE "OME ASS!RANCE CORPORATION VS.REP!FACTS !rand te/tile is a local man#fact#rin- corporation importin- vario#s articles s#c" as dyest#ffs, spare parts for *are"o#se mac"inery and filaments 2#bse;#ent to importation, t"e articles *ere transferred to =#rea# of C#stoms (=oC)*"ere it re;#ired payment of tariffs and ot"er c"ar-es 3nter82trata and P"il