credit cases surety and garantor
TRANSCRIPT
-
8/20/2019 Credit Cases Surety and Garantor
1/146
FIRST DIVISION
JOSE C. TUPAZ IV and G.R. No. 145578
PETRONILA C. TUPAZ,
Pe!!one"#,
P"e#en$
Da%!de, J"., C.J.,
C&a!"'an,
( %e"#)# ( *)!#)'+!n,
-na"e#(San!ao,
Ca"!o, and
A/0)na, JJ.
TE COURT OF APPEALS and
2AN3 OF TE PILIPPINE P"o')aed$
ISLANDS,
Re#onden#. No%e'+e" 18, 665
( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
DECISION
CARPIO, J.$
T&e Ca#e
-
8/20/2019 Credit Cases Surety and Garantor
2/146
T&!# !# a e!!on o" "e%!e9:1; o &e De0!#!on:; o &e Co)" o Aea# daed 7
See'+e" 666 and !# Re#o)!on daed 18 O0o+e" 666. T&e 7 See'+e" 666
De0!#!on aa!, 2"an0& 144 !n a 0a#e
o" e#aa )nde" Se0!on 1?, P"e#!den!a De0"ee No. 115. T&e Co)" o Aea#
Re#o)!on o 18 O0o+e" 666 den!ed e!!one"# 'o!on o" "e0on#!de"a!on.
T&e Fa0#
Pe!!one"# Jo#e C. T)a/ IV and Pe"on!a C. T)a/ @e!!one"# 9e"e V!0e(P"e#!den o"Oe"a!on# and V!0e(P"e#!denBT"ea#)"e", "e#e0!%e, o E O"o En"a%e" Co"o"a!on
@E O"o Co"o"a!on. E O"o Co"o"a!on &ad a 0on"a0 9!& &e P&!!!ne A"' o
#) &e ae" 9!& #)"%!%a +oo#.
To nan0e &e )"0&a#e o &e "a9 'ae"!a# o" &e #)"%!%a +oo#, e!!one"#, on
+e&a o E O"o Co"o"a!on, a!ed 9!& "e#onden 2an> o &e P&!!!ne I#and#
@"e#onden +an> o" 9o 0o''e"0!a ee"# o 0"ed!. T&e ee"# o 0"ed! 9e"e !n
a%o" o E O"o Co"o"a!on# #)!e"#, Tan0&ao0o =an)a0)"!n In0o"o"aed:?;
@Tan0&ao0o In0o"o"aed and =a"e#0o R)++e" and Re"ead!n Co"o"a!on:4;@=a"e#0o Co"o"a!on. Re#onden +an> "aned e!!one"# a!0a!on and !##)ed
Lee" o C"ed! No. (668(? o" P54,871.65 o Tan0&ao0o In0o"o"aed and Lee" o
C"ed! No. (6614(5 o" P4,666 o =a"e#0o Co"o"a!on.
S!')aneo)# 9!& &e !##)an0e o &e ee"# o 0"ed!, e!!one"# #!ned ")# "e0e!#
!n a%o" o "e#onden +an>. On ?6 See'+e" 181, e!!one" Jo#e C. T)a/ IV
@e!!one" Jo#e T)a/ #!ned, !n &!# e"#ona 0aa0!, a ")# "e0e! 0o""e#ond!n o
Lee" o C"ed! No. (668(? @o" P54,871.65. Pe!!one" Jo#e T)a/ +o)nd &!'#e
o #e &e ood# 0o%e"ed + &e ee" o 0"ed! and o "e'! &e "o0eed# o
"e#onden +an>, ! #od, o" o "e)"n &e ood#, ! no #od, on o" +eo"e De0e'+e"
181.
On O0o+e" 181, e!!one"# #!ned, !n &e!" 0aa0!!e# a# o, ! #od, o" o "e)"n &e ood#, !
no #od, on o" +eo"e 8 De0e'+e" 181.
-
8/20/2019 Credit Cases Surety and Garantor
3/146
Ae" Tan0&ao0o In0o"o"aed and =a"e#0o Co"o"a!on de!%e"ed &e "a9 'ae"!a# o
E O"o Co"o"a!on, "e#onden +an> a!d &e o"'e" P54,871.65 and P4,666,
"e#e0!%e.
Pe!!one"# d!d no 0o' 9!& &e!" )nde"a>!n )nde" &e ")# "e0e!#. Re#onden
+an> 'ade #e%e"a de'and# o" a'en# +) E O"o Co"o"a!on 'ade a"!a
a'en# on. On 7 J)ne 18? and 8 J)ne 18?, "e#onden +an># 0o)n#e:5; and
!# "e"e#ena!%e:; "e#e0!%e #en na de'and ee"# o E O"o Co"o"a!on. E
O"o Co"o"a!on "e!ed &a ! 0o)d no ) a !# de+ +e0a)#e &e A"'ed Fo"0e# o
&e P&!!!ne# &ad deaed a!n o" &e #)"%!%a +oo#.
Re#onden +an> 0&a"ed e!!one"# 9!& e#aa )nde" Se0!on 1?, P"e#!den!a
De0"ee No. 115 @Se0!on 1?:7; o" T")# Re0e!# La9 @PD 115. Ae" "e!'!na"
!n%e#!a!on, &e &en =a>a! F!#0a# Oa! F!#0a# O
-
8/20/2019 Credit Cases Surety and Garantor
4/146
In &od!n e!!one"# 0!%! !a+e 9!& E O"o Co"o"a!on, &e "!a 0o)" &ed$
:S;!n0e &e 0!%! a0!on o" &e "e0o%e" o &e 0!%! !a+!! !# dee'ed !'!ed
!n#!)ed 9!& &e 0"!'!na a0!on, a# !n a0 &e "o#e0)!on &e"eo 9a# a0!%e
&anded + &e "!%ae "o#e0)o", &e Co)" +e!e%e# &a &e E O"o En"a%e"
Co"o"a!on and +o& a00)#ed Jo#e C. T)a/ and Pe"on!a T)a/, Ho!n and #o!da"!
#&o)d +e &ed 0!%! !a+e o &e 2an> o &e P&!!!ne I#and#. T&e 'e"e a0 &a
&e 9e"e )na+e o 0oe0 !n ) "o' &e AFP andBo" &e Dea"'en o Na!ona
Deen#e &e "o0eed# o &e #ae o &e de!%e"ed #)"%!%a +oo# 'an)a0)"ed "o'
&e "a9 'ae"!a# 0o%e"ed + &e ")# "e0e! a"ee'en# !# no %a!d deen#e o &e
0!%! 0a!' o &e #a!d 0o'a!nan and #)"e 0o)d no 9!e o) &e!" 0!%! o+!a!on.
Ae" a, &e a"e "ee o !n#!)e an a0!on o 0oe0 &e #a'e.:;
Pe!!one"# aeaed o &e Co)" o Aea#. Pe!!one"# 0onended &a$ @1 &e!"
a0)!a oe"ae# o e!n)!#& :&e!"; 0!%! !a+!! and @ a an "ae, &e a"e no
e"#ona !a+e o" E O"o Co"o"a!on# de+#.
T&e R)!n o &e Co)" o Aea#
In !# De0!#!on o 7 See'+e" 666, &e Co)" o Aea# a
-
8/20/2019 Credit Cases Surety and Garantor
5/146
:;e &e"e+ &od &a &e a0)!a o &e a00)#ed(aean# "o' &e 0"!'!na 0&a"e
o e#aa d!d no oe"ae o e!n)!#& &e!" 0!%! !a+!! )nde" &e ee" o 0"ed!(")#
"e0e! a""ane'en 9!& a!n!M(aeee, 9!& 9&!0& &e dea +o& !n &e!"
e"#ona 0aa0! and a# o
-
8/20/2019 Credit Cases Surety and Garantor
6/146
en0e, &!# e!!on. Pe!!one"# 0onend &a$
1. A JUDG=ENT OF AC*UITTAL OPERATE:S; TO ETINGUIS TE CIVIL LIA2ILIT-
OF PETITIONERS:;
. GRANTING ITOUT AD=ITTING TAT TE *UESTIONED O2LIGATION AS
INCURRED 2- TE CORPORATION, TE SA=E IS NOT -ET DUE AND PA-A2LE
?. GRANTING TAT TE *UESTIONED O2LIGATION AS ALREAD- DUE AND
PA-A2LE, PETITIONERS ARE NOT PERSONALL- LIA2LE TO RESPONDENT 2AN3,
SINCE TE- SIGNED TE LETTER:S; OF CREDIT AS SURET- AS OFFICERS OF EL ORO,AND TEREFORE, AN ECLUSIVE LIA2ILIT- OF EL ORO :AND;
4. IN TE ALTERNATIVE, TE *UESTIONED TRANSACTIONS ARE SI=ULATED AND
VOID.:11;
T&e I##)e#
T&e e!!on "a!#e# &e#e !##)e#$
@1 &e&e" e!!one"# +o)nd &e'#e%e# e"#ona !a+e o" E O"o Co"o"a!on#
de+# )nde" &e ")# "e0e!#
@ I #o
@a 9&e&e" e!!one"# !a+!! !# #o!da" 9!& E O"o Co"o"a!on and
@+ 9&e&e" e!!one"# a0)!a o e#aa )nde" Se0!on 1?, PD 115 e!n)!#&ed
&e!" 0!%! !a+!!.
-
8/20/2019 Credit Cases Surety and Garantor
7/146
T&e R)!n o &e Co)"
T&e e!!on !# a" 'e"!o"!o)#. e ae an #e#
o" e&a)# an ea "e'ed!e# &a o) 'a &a%e aa!n# &e #a!d . +eo"e 'a>!n
de'and )on 'eB)#.:14; @Ca!a!/a!on !n &e o"!!na
-
8/20/2019 Credit Cases Surety and Garantor
8/146
In &e ")# "e0e! daed O0o+e" 181, e!!one"# #!ned +eo9 &!# 0a)#e a#
o
-
8/20/2019 Credit Cases Surety and Garantor
9/146
In 0on#!de"a!on o o)" "eea#!n o )nde" &e e"'# o &!# T")# Re0e! &e ood#
de#0"!+ed &e"e!n, IBe, Ho!n and #e%e"a, a"ee and "o'!#e o a o o), on
de'and, 9&ae%e" #)' o" #)'# o 'one 9&!0& o) 'a 0a )on 'eB)# o a o
o), a"!#!n o) o, e"a!n!n o, andBo" !n an 9a 0onne0ed 9!&, &!# T")# Re0e!,
!n &e e%en o dea) andBo" non()'en !n an "e#e0 o &!# )nde"a>!n on &e
a" o &e #a!d . IB9e )"&e" a"ee &a 'Bo)" !a+!! !n &!# )a"anee #&a +e
DIRECT AND I==EDIATE, 9!&o) an need 9&a#oe%e" on o)" a" o a>e an #e#o" e&a)# an ea "e'ed!e# &a o) 'a &a%e aa!n# &e #a!d . 2eo"e 'a>!n
de'and )on 'eB)#. @Unde"!n!n #)!ed 0a!a!/a!on !n &e o"!!na
T&e o9e" 0o)"# !ne""eed &!# o 'ean &a e!!one" Jo#e T)a/ +o)nd &!'#e
#o!da"! !a+e 9!& E O"o Co"o"a!on o" &e ae"# de+ )nde" &a ")# "e0e!.
T&!# !# e""o".
In P")den!a 2an> %. Ine"'ed!ae Aeae Co)",:1; &e Co)" !ne""eed a
#)+#an!a !den!0a 0a)#e:17; !n a ")# "e0e! #!ned + a 0o"o"ae o; !n#!## &a + %!")e o &e 0ea" 9o"d!n o &e 0a)#e
9e Ho!n and #e%e"a a"ee and )nde"a>e , and &e 0on0)d!n #enen0e
on e&a)#!on, :"e#onden; C&!# !a+!! &e"e!n !# #o!da".
O)" "ead!n o &e )e#!oned #o!da" )a"an 0a)#e !ed# no o&e" 0on0)#!on
&an &a &e o+!a!on o C&! !# on &a o a )a"ano". T&!# !# )"&e" +o#e"ed +
&e a# #enen0e 9&!0& #ea># o 9a!%e" o e&a)#!on, 9&!0&, ne%e"&ee##, !#
!neMe0!%e !n &!# 0a#e +e0a)#e &e #a0e &e"e!n o" &e a" 9&o#e "oe" 'a
no +e e&a)#ed 9a# no ed ). Unde" A"!0e 658 o &e C!%! Code, &e deen#e
o e&a)#!on @e0)##!on 'a +e "a!#ed + a )a"ano" +eo"e &e 'a +e &ed !a+e
o" &e o+!a!on. Pe!!one" !>e9!#e ad'!# &a &e )e#!oned "o%!#!on !# a #o!da"
)a"an 0a)#e, &e"e+ 0ea" d!#!n)!#&!n ! "o' a 0on"a0 o #)"e. I, &o9e%e",
de#0"!+ed &e )a"an a# #o!da" +e9een &e )a"ano"# &!# 9o)d &a%e +een
0o""e0 ! 9o @ )a"ano"# &ad #!ned !. T&e 0a)#e 9e Ho!n and #e%e"a a"ee
and )nde"a>e "ee"# o &e )nde"a>!n o &e 9o @ a"!e# 9&o a"e o #!n ! o" o&e !a+!! e!#!n +e9een &e'#e%e#. I doe# no "ee" o &e )nde"a>!n +e9een
e!&e" one o" +o& o &e' on &e one &and and &e e!!one" on &e o&e" 9!&
-
8/20/2019 Credit Cases Surety and Garantor
10/146
"e#e0 o &e !a+!! de#0"!+ed )nde" &e ")# "e0e!.
F)"&e"'o"e, an do)+ a# o &e !'o" o" ")e !nen o &e #o!da" )a"an 0a)#e
#&o)d +e "e#o%ed aa!n# &e e!!one". T&e ")# "e0e!, oe&e" 9!& &e
)e#!oned #o!da" )a"an 0a)#e, !# on a o"' d"aed and "ea"ed #oe + &e
e!!one" C&!# a"!0!a!on &e"e!n !# !'!ed o &e a# #)! aa!n# e!!one" Jo#e T)a/ #and# de#!e &eCo)"# nd!n &a &e !# !a+e a# )a"ano" on. F!"#, e0)##!on !# no a "e("e)!#!e
o #e0)"e H)d'en aa!n# a )a"ano". T&e )a"ano" 0an #! de'and dee"'en o
&e ee0)!on o &e H)d'en aa!n# &!' )n! ae" &e a##e# o &e "!n0!a de+o"
#&a &a%e +een e&a)#ed.:1; Se0ond, &e +ene o e0)##!on 'a +e 9a!%ed.:6;
Unde" &e ")# "e0e! daed ?6 See'+e" 181, e!!one" Jo#e T)a/ 9a!%ed
e0)##!on 9&en &e a"eed &a &!# !a+!! !n :&e; )a"an #&a +e DIRECT AND
I==EDIATE, 9!&o) an need 9&a#oe%e" on :&e; a" :o "e#onden +an>; o
a>e an #e# o" e&a)# an ea "e'ed!e# . T&e 0ea" !'o" o &!# #!)a!on
!# &a e!!one" Jo#e T)a/ 9a!%ed &e +ene o e0)##!on )nde" &!# )a"anee.
A# )a"ano", e!!one" Jo#e T)a/ !# !a+e o" E O"o Co"o"a!on# "!n0!a de+ and
o&e" a00e##o" !a+!!!e# @a# #!)aed !n &e ")# "e0e! and a# "o%!ded + a9
)nde" &e ")# "e0e! daed ?6 See'+e" 181. T&a ")# "e0e! @and &e ")#
"e0e! daed O0o+e" 181 "o%!ded o" a'en o ao"ne# ee# e)!%aen o
16K o &e oa a'o)n d)e and an !ne"e# a &e "ae o 7K e" ann)', o" a #)0&
o&e" "ae a# &e +an> 'a , "o' &e dae d)e )n! a!d .:1; In &e
a!0a!on# o" &e ee"# o 0"ed!, &e a"!e# #!)aed &a d"a# d"a9n )nde" &e
ee"# o 0"ed! a"e #)+He0 o !ne"e# a &e "ae o 18K e" ann)'.:;
T&e o9e" 0o)"# 0o""e0 a!ed &e 18K !ne"e# "ae e" ann)' 0on#!de"!n &a
&e a0e %a)e o ea0& o &e ")# "e0e!# !# +a#ed on &e d"a# d"a9n )nde" &e
ee"# o 0"ed!. 2a#ed on &e )!de!ne# a!d do9n !n
Ea#e"n S&!!n L!ne#, In0. %. Co)" o Aea#,:?; &e a00")ed #!)aed !ne"e#
ea"n# 1K !ne"e# e" ann)' "o' &e !'e o &e !n o &e Ino"'a!on# !n &e
=a>a! Re!ona T"!a Co)" on 17 Jan)a" 184. F)"&e", &e oa a'o)n d)e a# o &e
dae o &e na! o &!# De0!#!on 9! ea"n !ne"e# a 18K e" ann)' )n! ) a!d
#!n0e &!# 9a# &e #!)aed "ae !n &e a!0a!on# o" &e ee"# o 0"ed!.:4;
-
8/20/2019 Credit Cases Surety and Garantor
11/146
T&e a00o)n!n o E O"o Co"o"a!on# de+# a# o ? Jan)a" 1, 9&!0& &e "!a
0o)" )#ed, !# no one" )#e) a# ! doe# no #e0! &e a'o)n# o9!n )nde" ea0& o
&e ")# "e0e!#. en0e, !n &e ee0)!on o &!# De0!#!on, &e "!a 0o)" #&a
0o')e E O"o Co"o"a!on# oa !a+!! )nde" ea0& o &e ")# "e0e!# daed ?6
See'+e" 181 and O0o+e" 181 +a#ed on &e oo9!n o"')a$:5;
TOTAL A=OUNT DUE :"!n0!a !ne"e# !ne"e# on !ne"e#; a"!a a'en#
'ade:;
Ine"e# "!n0!a 18 K e" ann)' no. o ea"# "o' d)e dae:7; )n! na! o
H)d'en
Ine"e# on !ne"e# !ne"e# 0o')ed a# o &e !n o &e 0o'a!n @17 Jan)a"
184 1K no. o ea"# )n! na! o H)d'en
Ao"ne# ee# !# 16K o &e oa a'o)n 0o')ed a# o na! o H)d'en
Toa a'o)n d)e a# o &e dae o na! o H)d'en 9! ea"n an !ne"e# o 18K e"
ann)' )n! ) a!d.
In #o deea!n &!# a#>, 9e "e!e"ae 9&a 9e #a!d !n R!/a Co''e"0!a 2an>!n
Co"o"a!on %. Aa RT =an)a0)"!n Co"o"a!on:8; 9&e"e 9e a#o o"de"ed &e "!a
0o)" o 0o')e &e a'o)n o o+!a!on d)e +a#ed on a o"')a #)+#an!a
#!'!a" o &a !nd!0aed a+o%e$
T&e oa a'o)n d)e :)nde"; &e 0on"a0:; 'a +e ea#! dee"'!ned +
&e "!a 0o)" &"o)& a #!'e 'a&e'a!0a 0o')a!on +a#ed on &e o"')a
#e0!ed a+o%e. =a&e'a!0# !# an ea0 #0!en0e, &e a!0a!on o 9&!0& need# no
)"&e" "oo "o' &e a"!e#.
Pe!!one" Jo#e T)a/# A0)!a d!d no
E!n)!#& &!# C!%! L!a+!!
-
8/20/2019 Credit Cases Surety and Garantor
12/146
T&e ")e !# &a 9&e"e &e 0!%! a0!on !# !'!ed !n#!)ed 9!& &e 0"!'!na a0!on,
&e 0!%! !a+!! !# no e!n)!#&ed + a0)!a
:9;&e"e &e a0)!a !# +a#ed on "ea#ona+e do)+ a# on "eonde"an0e oe%!den0e !# "e)!"ed !n 0!%! 0a#e# 9&e"e &e 0o)" e"e## de0a"e# &a &e !a+!!
o &e a00)#ed !# no 0"!'!na +) on 0!%! !n na)"e a#, o" !n#an0e, !n &e
eon!e# o e#aa, &e, and 'a!0!o)# '!#0&!e 0o''!ed + 0e"a!n "ea!%e# 9&o
&e"e+ !n0)" on 0!%! !a+!! @See A". ??, Re%!#ed Pena Code and, 9&e"e &e 0!%!
!a+!! doe# no a"!#e "o' o" !# no +a#ed )on &e 0"!'!na a0 o 9&!0& &e a00)#ed
9a# a0)!ed .:; @E'&a#!# #)!ed
e"e, "e#onden +an> 0&o#e no o e a #ea"ae 0!%! a0!on:?6; o "e0o%e" a'en
)nde" &e ")# "e0e!#. In#ead, "e#onden +an> #o)& o "e0o%e" a'en !n
C"!'!na Ca#e No#. 8848 and 884. A&o)& &e "!a 0o)" a0)!ed e!!one" Jo#e
T)a/, &!# a0)!a d!d no e!n)!#& &!# 0!%! !a+!!. A# &e Co)" o Aea#
0o""e0 &ed, &!# !a+!! a"o#e no "o' &e 0"!'!na a0 o 9&!0& &e 9a# a0)!ed
@e de!o +) "o' &e ")# "e0e! 0on"a0 @e 0on"a0) o ?6 See'+e" 181.
Pe!!one" Jo#e T)a/ #!ned &e ")# "e0e! o ?6 See'+e" 181 !n &!# e"#ona
0aa0!.
On &e o&e" =ae"# Pe!!one"# Ra!#e
Pe!!one"# "a!#e o" &e "# !'e !n &!# aea &e 0onen!on &a E O"o Co"o"a!on#
de+# )nde" &e ")# "e0e!# a"e no e d)e and de'anda+e. Ae"na!%e,
e!!one"# a##a! &e ")# "e0e!# a# #!')aed. T&e#e a##e"!on# &a%e no 'e"!.
Unde" &e e"'# o &e ")# "e0e!# daed ?6 See'+e" 181 and O0o+e" 181,
E O"o Co"o"a!on# de+# e d)e on De0e'+e" 181 and 8 De0e'+e" 181,
"e#e0!%e.
Ne!&e" !# &e"e 'e"! o e!!one"# 0a!' &a &e ")# "e0e!# 9e"e #!')aed.
D)"!n &e "!a, e!!one"# d!d no den a!n o" &e ee"# o 0"ed! and
#)+#e)en ee0)!n &e ")# "e0e!# o #e0)"e a'en o &e d"a# d"a9n )nde"
&e ee"# o 0"ed!.
EREFORE, 9e GRANT &e e!!on !n a". e AFFIR= &e De0!#!on o &e Co)" o
Aea# daed 7 See'+e" 666 and !# Re#o)!on daed 18 O0o+e" 666 9!& &e
oo9!n =ODIFICATIONS$
-
8/20/2019 Credit Cases Surety and Garantor
13/146
1 E O"o En"a%e" Co"o"a!on !# "!n0!a !a+e o" &e oa a'o)n d)e )nde"
&e ")# "e0e!# daed ?6 See'+e" 181 and O0o+e" 181, a# 0o')ed + &e
Re!ona T"!a Co)", =a>a!, 2"an0& 144, )on na! o &!# De0!#!on, +a#ed on &e
o"')a "o%!ded a+o%e
Pe!!one" Jo#e C. T)a/ IV !# !a+e o" E O"o En"a%e" Co"o"a!on# oa de+
)nde" &e ")# "e0e! daed ?6 See'+e" 181 a# &)# 0o')ed + &e Re!ona
T"!a Co)", =a>a!, 2"an0& 144 and
? Pe!!one"# Jo#e C. T)a/ IV and Pe"on!a C. T)a/ a"e no !a+e )nde" &e ")#
"e0e! daed O0o+e" 181.
SO ORDERED.
G.R. No. L(44 =a 15, 1
LUZON STEEL CORPORATION, "e"e#ened + TO=AS A*UINO CU, a!n!M(aean,
%#.
JOSE O. SIA, deendan,
TI=ES SURET- Q INSURANCE CO. INC., #)"e(aeee.
Ge"'an A. S!!n o" a!n!M(aean.
Ga!0ano S. Caaa!a o" #)"e(aeee.
RE-ES, J.2.L., J.$
D!"e0 aea "o' 9o o"de"#, daed 1 =a and 5 J)ne 15, !##)ed + &e Co)" oF!"# In#an0e o =an!a @J)de F"an0!#0o A"0a "e#!d!n, !n !# C!%! Ca#e No. 541?,
en!ed L)/on See Co"o"a!on, a!n!M %#. =ea =an)a0)"!n o &e P&!!!ne#,
-
8/20/2019 Credit Cases Surety and Garantor
14/146
-
8/20/2019 Credit Cases Surety and Garantor
15/146
0o'"o'!#e, and &a &e 9"! 9a# !##)ed 9!&o) !%!n &e #)"e no!0e and
&ea"!n. T&e 0o)", o%e"")!n &e a!n!M# oo#!!on, #e a#!de &e 9"! o ee0)!on,
and ae" 0an0eed &e 0o)ne"+ond, and den!ed &e 'o!on o" "e0on#!de"a!on.
en0e &!# aea.
=a!n !##)e# o#ed a"e @1 9&e&e" &e H)d'en )on &e 0o'"o'!#e d!#0&a"ed &e
#)"e "o' !# o+!a!on )nde" !# aa0&'en 0o)ne"+ond and @ 9&e&e" &e 9"!
o ee0)!on 0o)d +e !##)ed aa!n# &e #)"e 9!&o) "e%!o)# e&a)#!on o &e
de+o"# "oe"!e#.
2o& )e#!on# 0an +e #o%ed + +ea"!n !n '!nd &a 9e a"e dea!n 9!& a
0o)ne"+ond ed o d!#0&a"e a e% on aa0&'en. R)e 57, #e0!on 1, #e0!e#
&a an aa0&'en 'a +e d!#0&a"ed )on &e 'a>!n o a 0a#& deo#! o" !n a
0o)ne"+ond !n an a'o)n e)a o &e %a)e o &e "oe" aa0&ed a# dee"'!ned+ &e H)de &a )on &e !n o &e 0o)ne"+ond &e "oe" aa0&ed ... #&a
+e de!%e"ed o &e a" 'a>!n &e deo#! o" !%!n &e 0o)ne"+ond, o" &e e"#on
aea"!n on &!# +e&a, &e deo#! o" 0o)ne"+ond ao"e#a!d #and!n !n a0e o &e
"oe" #o "eea#ed.
T&e !a!0!/ed e"e##!on# 0on#!)e &e >e o &e en!"e "o+e'. &e&e" &e
H)d'en +e "ende"ed ae" "!a on &e 'e"!# o" )on 0o'"o'!#e, #)0& H)d'en
)ndo)+ed 'a +e 'ade eMe0!%e )on &e "oe" "eea#ed and #!n0e &e
0o)ne"+ond 'e"e #and# !n &e a0e o #)0& "oe", &e"e !# no "ea#on 9& &e H)d'en #&o)d no +e 'ade eMe0!%e aa!n# &e 0o)ne"+ond "ea"de## o &e
'anne" &o9 &e H)d'en 9a# o+a!ned.
S)a"e on &e o!n, and "e+)!n &e aeee# a"e&en#!on &a &e 0o'"o'!#e
0o)d +e &e "e#) o a 0o)#!on +e9een &e a"!e# o !nH)"e &e #)"e, !# o)"
de0!#!on !n An/)"e# %#. Ao S)"e Q In#)"an0e Co., In0., e a., P&!. 74, 9&e"e &!#
Co)", &"o)& o"'e" C&!e J)#!0e Pa"a#, ")ed a# oo9#$
Unde" #e0!on 1, R)e 5, o &e R)e# o Co)", &e +ond ed, a# !n &!# 0a#e, o" &e
d!#0&a"e o an aa0&'en !# o #e0)"e &e a'en o &e a!n!M o an H)d'en
&e 'a "e0o%e" !n &e a0!on, and #and# !n a0e o &e "oe" #o "eea#ed. I
oo9# &a &e o"de" o 0an0ea!on !##)ed + &e "e#onden H)de !# e""oneo)#.
Indeed, H)d'en &ad a"ead +een "ende"ed + &e Co)" o F!"# In#an0e o =an!a !n
0!%! 0a#e No. 11748, #enen0!n 2enHa'!n A)!a" o a &e #)' o P?,566.66 o &e
e!!one" and ! !# no "eended &a #a!d H)d'en !# a n)!. T&e"e !# no o!n !n
&e 0onen!on o &e "e#onden S)"e Co'an &a &e 0o'"o'!#e 9a# ene"ed
!no 9!&o) !# >no9ede and 0on#en, &)# +e0o'!n a# o ! e##en!a "a)d)en.
T&e S)"e !# no a a" o 0!%! 0a#e No. 11748 and, &e"eo"e, need no +e #e"%ed
9!& no!0e o &e e!!on o" H)d'en. A# aa!n# &e 0onHe0)"e o #a!d "e#onden
-
8/20/2019 Credit Cases Surety and Garantor
16/146
&a &e a"!e# 'a ea#! 0onn!%e + 'ean# o a 0o'"o'!#e o "eH)d!0e !, &e"e !#
a#o &e !>e!&ood &a &e #a'e end 'a +e aa!ned + a"!e# a0!n !n +ad a!&
&"o)& a #!')aed "!a. A an "ae, ! !# 9!&!n &e o9e" o &e S)"e Co'an o
"oe0 !#e aa!n# a "!#> o &e >!nd.
&e"eo"e, &e o"de" o &e "e#onden J)de 0an0e!n &e +ond !n )e#!on !# #e
a#!de. So o"de"ed 9!& 0o## aa!n# &e "e#onden Ao S)"e Q In#)"an0e Co., In0.
T&e o9e" 0o)" and &e aeee &e"e!n aea" o &a%e "e!ed on do0"!ne# o &!#
Co)" 0on0e"n!n &e !a+!! o #)"e!e# !n +ond# ed + a a!n!M o" &e !##)an0e o
9"!# o aa0&'en, 9!&o) d!#0"!'!na!n +e9een #)0& +ond# and &o#e ed + a
deendan o" &e !!n o 9"!# o aa0&'en a"ead !##)ed and e%!ed. T&!#
0on)#!on !# &a"d e0)#a+e 0on#!de"!n &a &!# Co)" &a# a"ead 0aed aen!on
o &e d!Me"en0e +e9een &e#e >!nd# o +ond#. T&)#, !n CaHee %#. J)de Fe"nande/, ea., L(1576, 1 O0o+e" 16, &!# Co)" o!ned o) &a
T&e d!%e"#e ")e !n #e0!on 17 o R)e 5 o" 0o)ne"+ond# o#ed o o+a!n &e !!n
o a 9"! o aa0&'en !# d)e o &e#e +ond# +e!n #e0)"! o" &e a'en o an
H)d'en &a &e aa0&!n a" 'a o+a!n &e a"e &)# 'e"e "ea0e'en# o &e
"oe" o"'e" aa0&ed, and H)# a# &e ae" 'a +e e%!ed )on ae" na
H)d'en !n &e 0a#e !n o"de" o "ea!/e &e a'o)n adH)ded, #o !# &e !a+!! o &e
0o)ne"#)"e!e# a#0e"a!na+e ae" &e H)d'en &a# +e0o'e na. T&!# #!)a!on doe#
no o+a!n !n &e 0a#e o !nH)n0!on 0o)ne"+ond#, #!n0e &e #)"e!e# !n &e ae" 0a#e'e"e )nde"a>e o a a da'ae# &a &e a!n!M 'a #)Me" + "ea#on o &e
0on!n)an0e ... o &e a0# 0o'a!ned o @R)e 6, #e0!on and no o #e0)"e
a'en o &e H)d'en "e0o%e"ed.1
I 9a#, &e"eo"e, e""o" on &e a" o &e 0o)" +eo9 o &a%e o"de"ed &e #)"e +ond
0an0eed, on &e &eo" &a &e a"!e# 0o'"o'!#e d!#0&a"ed &e o+!a!on o &e
#)"e.
A# de0a"ed + )# !n =e"0ado %#. =a0aaa, P&!. 46?, 465(46, !n a##!n )on
&e !a+!! o 0o)ne" #)"e!e# !n "ee%!n 9&o +o)nd &e'#e%e# o an#9e" #o!da"!
o" &e o+!a!on# o &e deendan# o &e a!n!M# !n a ed a'o)n o P1.64, o
#e0)"e a'en o &e a'o)n &a #a!d a!n!M +e adH)ded o "e0o%e" "o' &e
deendan#,
&e !a+!! o &e #)"e!e# 9a# ed and 0ond!!oned on &e na! o &e H)d'en
"ende"ed "ea"de## o 9&e&e" &e de0!#!on 9a# +a#ed on &e 0on#en o &e a"!e#o" on &e 'e"!#. A H)d'en ene"ed on a #!)a!on !# none&ee## a H)d'en o &e
0o)" +e0a)#e 0on#ened o + &e a"!e#.
-
8/20/2019 Credit Cases Surety and Garantor
17/146
2) &e #)"e !n &e "e#en 0a#e !n#!## @and &e 0o)" +eo9 #o ")ed &a &e
ee0)!on !##)ed aa!n# ! 9a# !n%a!d +e0a)#e &e 9"! !##)ed aa!n# !# "!n0!a,
Jo#e O. S!a, e a., deendan# +eo9, &ad no +een "e)"ned )n#a!#ed and &e #)"e
!n%o>ed !n !# a%o" Se0!on 17 o R)e 57 o &e Re%!#ed R)e# o Co)" @od R)e 5,
0o)0&ed !n &e oo9!n e"'#$
SEC. 17. &en ee0)!on "e)"ned )n#a!#ed, "e0o%e" &ad )on +ond. I &e
ee0)!on +e "e)"ned )n#a!#ed !n 9&oe o" !n a", &e #)"e o" #)"e!e# on an
0o)ne"+ond !%en )"#)an o &e "o%!#!on# o &!# ")e o #e0)"e &e a'en o &e
H)d'en #&a +e0o'e 0&a"ed on #)0& 0o)ne"(+ond, and +o)nd o a o &e
H)d'en 0"ed!o" )on de'and, &e a'o)n d)e )nde" &e H)d'en, 9&!0& a'o)n
'a +e "e0o%e"ed "o' #)0& #)"e o" #)"e!e# ae" no!0e and #)''a" &ea"!n !n
&e #a'e a0!on.
T&e #)"e# 0onen!on !# )nena+e. T&e 0o)ne"+ond 0one'aed !n &e ")e !#
e%!den an o"d!na" )a"an 9&e"e &e #)"e!e# a##)'e a #)+#!d!a" !a+!!. T&!# !#
no &e 0a#e &e"e, +e0a)#e &e #)"e !n &e "e#en 0a#e +o)nd !#e Ho!n and
#e%e"a @!n #o!d)' 9!& &e deendan and ! !# "e#0"!+ed !n A"!0e 65,
a"a"a& , o &e C!%! Code o &e P&!!!ne# &a e0)#!on @"e%!o)# e&a)#!on o
&e "oe" o &e de+o" #&a no a>e a0e ! &e @&e )a"ano" &a# +o)nd
&!'#e #o!da"! 9!& &e de+o". T&e ")e &e"eoo"e )oed 0anno +e 0on#")ed a#
"e)!"!n &a an ee0)!on aa!n# &e de+o" +e "# "e)"ned )n#a!#ed e%en ! &e
+ond 9e"e a #o!da" one o" a "o0ed)"a ")e 'a no a'end &e #)+#an!%e a9
e"e##ed !n &e C!%! Code, and )"&e" 9o)d n)! &e e"e## #!)a!on o &e
a"!e# &a &e #)"e# o+!a!on #&o)d +e #o!da" 9!& &a o &e deendan.
A #e0ond "ea#on aa!n# &e #and o &e #)"e and o &e 0o)" +eo9 !# &a e%en !
&e #)"e# )nde"a>!n 9e"e no #o!da" 9!& &a o &e "!n0!a de+o", #! &e
'a no de'and e&a)#!on o &e "oe" o &e ae", )ne## &e 0an o!n o)
#)
-
8/20/2019 Credit Cases Surety and Garantor
18/146
"e%!o)# aa0&ed, a# ! 9a# )nde" Se0!on 446 o &e od Code o C!%! P"o0ed)"e.
&e"e )nde" &e ")e and &e +ond &e )nde"a>!n !# o a &e H)d'en, &e
!a+!! o &e #)"e o" #)"e!e# aa0&e# )on &e "end!!on o &e H)d'en, and &e
!##)e o an ee0)!on and !# "e)"n n)a +ona !# no, and #&o)d no +e, a 0ond!!on o
&e "!& o "e#o" o &e +ond. ?
I !# ")e &a )nde" Se0!on 17 "e0o%e" "o' &e #)"e o" #)"e!e# #&o)d +e ae"
no!0e and #)''a" &ea"!n !n &e #a'e a0!on. 2) &!# "e)!"e'en &a# +een
#)+#an!a 0o'!ed 9!& "o' &e !'e &e #)"e 9a# ao9ed o 'o%e o" &e
)a#&a o &e 9"! o ee0)!on and o" &e 0an0ea!on o &e!" o+!a!on.
EREFORE, &e o"de"# aeaed "o' a"e "e%e"#ed, and &e 0o)" o o"!!n !# o"de"ed
o "o0eed 9!& &e ee0)!on aa!n# &e #)"e aeee, T!'e# S)"e Q In#)"an0e
Co., In0. Co## aa!n# #a!d aeee.
Re)+!0 o &e P&!!!ne#
SUPRE=E COURT
=an!a
FIRST DIVISION
G.R. No. L(86?6 Jan)a" 18, 18
TE I=PERIAL INSURANCE, INC., e!!one",
%#.
ON. ALFRIDO DE LOS ANGELES, J)de o &e Co)" o F!"# In#an0e o R!/a, *)e/on
C! 2"an0& IV, ROSA V. RE-ES, PEDRO V. RE-ES and CONSOLACION V. RE-ES,
"e#onden#.
FERNANDEZ, J.$
-
8/20/2019 Credit Cases Surety and Garantor
19/146
T&!# !# a e!!on o" 0e"!o"a"! o "e%!e9 &e de0!#!on o &e Co)" o Aea# !n CA(G.R.
No. ?884(R "o')aed on J) 1, 17 en!ed T&e I'e"!a In#)"an0e, In0.,
e!!one" %#. on. a"!do de o# Anee#, J)de o &e Co)" o F!"# In#an0e o R!/a,
2"an0& IV, *)e/on C!, e a, "e#onden#, &e d!#o#!!%e a" o 9&!0& "ead#$
EREFORE, &e !n#an e!!on !# d!#'!##ed and &e 9"! o "e!'!na" !nH)n0!on
!##)ed + &e Co)" on Jan)a" ?1, 17, !# &e"e+ d!##o%ed, 9!& 0o## aa!n#
e!!one".
SO ORDERED. 1
A# o)nd + &e Co)" o Aea#, &e )n0on"o%e"ed a0# a"e$
I aea"# &a &e"e!n "!%ae "e#onden Ro#a V. Ree# !# &e a!n!M !n C!%! Ca#e N.
*(81? o &e Co)" o F!"# In#an0e o R!/a, 2"an0& IV, *)e/on C!, en!ed, Ro#a V.
Ree# %#, Fe!0!#!'o V. Ree#, e0., 9&e"e #&e o+a!ned a 9"! o "e!'!na"
aa0&'en and, a00o"d!n, e%!ed )on a &e "oe"!e# o &e deendan,
Fe!0!#!'o V. Ree#, !n #a!d 0a#e. T&e o&e" 9o &e"e!n "!%ae "e#onden#, na'e,
Ped"o V. Ree# and Con#oa0!on V. Ree#, a"e &e a!n!M# !n C!%! Ca#e No. *(514 o
&e #a'e 0o)" en!ed, Ped"o V. Ree#, e0., and !>e9!#e, o+a!ned a 9"! o
"e!'!na" aa0&'en and, a00o"d!n, e%!ed )on a &e "oe"!e# o &e
deendan, Fe!0!#!'o V. Ree#, !n #a!d 0a#e.
Fo" &e d!##o)!on o &e aa0&'en# "ee""ed o a+o%e, &e &e"e!n e!!one", T&e
I'e"!a In#)"an0e, In0., a# #)"e, and Fe!0!#!'o V. Ree#, a# "!n0!a, o#ed a
deendan# +ond o" d!##o)!on o aa0&'en !n &e a'o)n o P6,666.66 !n C!%!
Ca#e No. *(51? and ano&e" +ond o &e #a'e na)"e !n &e a'o)n o P46,666.66 !n
C!%! Ca#e No. *(514.
C!%! Ca#e# No#. *(51? and 514 9e"e Ho!n "!ed and &e de0!#!on &e"e!n "ende"ed
9a# !n a%o" o &e a!n!M#. T&!# de0!#!on 9a# a
-
8/20/2019 Credit Cases Surety and Garantor
20/146
On See'+e" , 1, "!%ae "e#onden# ed a 'o!on o" "e0o%e" on &e #)"e
+ond#. T&e"eae", #a!d "!%ae "e#onden#, &") 0o)n#e, #en a ee" o de'and
)on e!!one" a#>!n &e ae" o a &e' &e a00o)n# on &e 0o)ne"(+ond#. On
See'+e" 4, 1, e!!one" ed !# oo#!!on o &e "!%ae "e#onden# =o!on
o" "e0o%e" on &e #)"e +ond#. Re#onden J)de, !n &!# o"de", daed No%e'+e" 16,1, "ende"ed H)d'en aa!n# &e 0o)ne"(+ond#.
On No%e'+e" 15, 1, "!%ae "e#onden# ed an e a"e 'o!on o" 9"! o
ee0)!on 9!&o) #e"%!n 0o &e"eo on e!!one".
In &e 'ean!'e, on o" a+o) No%e'+e" ? 1, e!!one" ed a 'o!on o"
"e0on#!de"a!on o &e o"de", daed No%e'+e" 16, 1. T&!# 'o!on 9a#, &o9e%e",
den!ed + &e "e#onden J)de on Jan)a" , 17.
On o" a+o) Jan)a" 11, 17, e!!one" ed !# no!0e o !nen!on o aea "o'
&e na o"de"# o &e "e#onden J)de, daed No%e'+e" 16, 1 and Jan)a" .
17.
On Jan)a" 1, 17, &e "e#onden J)de !##)ed an o"de" "an!n &e !##)an0e o
&e 9"! o ee0)!on aa!n# &e +ond# "!ed + &e e!!one" @E&!+! J, e!!on.
On Jan)a" 5, 17, &e e!!one" ed a e!!on o" 0e"!o"a"! 9!& "ae" o" o"
"e!'!na" !nH)n0!on 9!& &e Co)" o Aea# o "e#"a!n &e eno"0e'en o &e 9"!
o ee0)!on. ?
T&e e!!on 9a# !%en d)e 0o)"#e and on Jan)a" ?6, 17 a 9"! o "e!'!na"
!nH)n0!on 9a# !##)ed. 4 Ae" &e a"!e# &ad #)+'!ed &e!" "e#e0!%e ead!n# and'e'o"anda !n !e) o o"a a")'en, &e Co)" o Aea# "ende"ed &e de0!#!on no9
)nde" "e%!e9.
T&e deendan, Fe!0!#!'o V. Ree#, !n &e a+o%e'en!oned 0a#e# d!ed d)"!n &e
enden0 o &e "!a. e 9a# d) #)+#!)ed + &!# #)"%!%!n #o)#e, E'!!a T. Da%!d,
an ad'!n!#"a"! o &!# !ne#ae e#ae. 5
T&e e!!one" a##!n# a# e""o"# aeed 0o''!ed + &e Co)" o Aea# &e
oo9!n$
-
8/20/2019 Credit Cases Surety and Garantor
21/146
I
TE COURT OF APPEALS GRAVEL- ERRED IN OLDING TAT TE RESPONDENT JUDGE
COULD LEGALL- ISSUE TE RIT OF EECUTION AGAINST TE PETITIONER AS SURET-IN A COUNTER2OND @2OND TO DISSOLVE ATTAC=ENT ON TE 2ASIS OF AN E(
PARTE =OTION FOR EECUTION IC AS NEITER SERVED UPON TE SURET- NOR
SET FOR EARING.
II
TE COURT OF APPEALS GRAVEL- ERRED IN OLDING TAT TE PLAINTIFF OO2TAINED A JUDG=ENT AGAINST TE DEFENDANT =A- LEGALL- COOSE TO GO
DIRECTL- AFTER TE SURET- IN A COUNTER2OND ITOUT PRIOR EAUSTION OF
TE DEFENDANTS PROPERTIES.
III
TE COURT OF APPEALS GRAVEL- ERRED IN NOT OLDING TAT TE JUDG=ENT
RENDERED AGAINST TE =ENTIONED COUNTER2ONDS IS A FINAL ORDER IN TE
CONTE=PLATION OF SECTION , RULE 41 OF TE REVISED RULES OF COURT AND,
TEREFORE, APPEALA2LE.
IV
TE COURT OF APPEALS GRAVEL- ERRED IN NOT OLDING TAT IN TE A2SENCE OF
AN EPRESS PROVISION OF TE REVISED RULES OF COURT, TE PROCEDUREFOLLOED 2- TE SERIFF IN TE EECUTION OF TE JUDG=ENT ON TE SURVIVING
CLAI=S, EN TE DEFENDANT DIED DURING TE PENDENC- OF TE TRIAL OF IS
CASE AND 2EFORE JUDG=ENT AS DUL- SU2STITUTED 2- TE COURT APPOINTED
AD=INISTRATRI OF IS ESTATE, SOULD AVE 2EEN TE SA=E AS TE PROCEDURE
SET OUT IN SECTION @, RULE 57 RESPECTING TE EECUTION OF A RIT OF
PRELI=INAR- ATTAC=ENT OF PROPERTIES IN CUSTODIALEGIS.
Anen &e "# e""o", &e e!!one" 0onend# &a &e Co)" o Aea# e""ed !n &od!n
&a &e "e#onden H)de 0o)d ea !##)e &e 9"! o ee0)!on aa!n# &e
e!!one" a# #)"e !n a 0o)ne"+ond @+ond o d!##o%e aa0&'en on &e +a#!# o an
e a"e 'o!on o" ee0)!on 9&!0& 9a# aeed ne%e" #e"%ed )on &e #)"e no"
-
8/20/2019 Credit Cases Surety and Garantor
22/146
#e o" &ea"!n. T&!# 0onen!on !# de%o!d o 'e"!.
T&e 0o)ne"+ond# ed o ! &e 9"!# o aa0&'en ee0)ed + &e &e"e!n
e!!one", T&e I'e"!a In#)"an0e, In0., o" and !n +e&a o &e de0ea#ed deendan
Fe!0!#!'o V. Ree# !n a%o" o &e a!n!M#, "!%ae "e#onden# &e"e!n Ro#a V. Ree#
and Con#oa0!on V. Ree# !n C!%! Ca#e No. *(514 do0>eed 9!& &e Co)" o F!"#
In#an0e o R!/a, 2"an0& IV, *)e/on C!, a"e 0ea" &e +ond# 0one'aed )nde"
Se0. 17, R)e 57 o &e R)e# o Co)" 9&!0& "o%!de#$
Se0. 17. &en ee0)!on "e)"ned )n#a!#ed, "e0o%e" &ad )on +ond. I &e
ee0)!on +e "e)"ned )n#a!#ed !n 9&oe o" !n a", &e #)"e o" #)"e!e# on an
0o)ne"+ond !%en )"#)an o &e "o%!#!on# o &!# ")e o #e0)"e &e a'en o &e
H)d'en #&a +e0o'e 0&a"ed on #)0& 0o)ne"(+ond, and +o)nd o a o &e
H)d'en 0"ed!o" )on de'and, &e a'o)n d)e )nde" &e H)d'en, 9&!0& a'o)n'a +e "e0o%e"ed "o' #)0& #)"e o" #)"e!e# ae" no!0e and #)''a" &ea"!n !n
&e #a'e a0!on.
T&!# #e0!on ao9# &e 0o)ne"+ond ed o ! an aa0&'en o +e 0&a"ed on ae"
no!0e and #)''a" &ea"!n !n &e #a'e a0!on.
T&e "e0o"d# #&o9 &a &e no!0e and &ea"!n "e)!"e'en 9a# #)+#an!a 0o'!ed
9!& !n &e !n#an 0a#e.
P"!o" o &e !n o &e e a"e 'o!on o" a 9"! o ee0)!on, &e "e#onden# ed a
'o!on o" "e0o%e" on &e #)"e +ond# 9&e"e &e e!!one" 9a# d) no!ed and &e
#a!d 'o!on 9a# &ea"d on See'+e" 4, 1. 7 =o"eo%e", on No%e'+e" ?, 1
&e e!!one" ed a 'o!on o" "e0on#!de"a!on o &e o"de" daed No%e'+e" 16, 1
"ende"!n H)d'en aa!n# &e e!!one" on !# 0o)ne"(+ond# !n &e a'o)n o
P6,666.66 !n C!%! Ca#e No. *(51? and P46,666.66 !n C!%! Ca#e No. *(514. 8 T&e
"e#onden H)de #e &e &ea"!n o &e e a"e 'o!on o" 9"! o ee0)!on oe&e"9!& &e 'o!on o" "e0on#!de"a!on o &e o"de" daed No%e'+e" 16, 1 on
De0e'+e" 17, 1 a 8$?6 o0o0> !n &e 'o"n!n. T&e e!!one" "e0e!%ed &e
no!0e o &e #a!d &ea"!n on De0e'+e" , 1 a# e%!den0ed + Re!#" Re)"n
Re0e! No. 461. 16 On Jan)a" , 17, &e "e#onden J)de !##)ed an o"de"
den!n &e 'o!on o" "e0on#!de"a!on daed No%e'+e" ?, 1 o" a0> o 'e"!. 11
!n an o"de" daed Jan)a" 1, 17, &e 'o!on o" 9"! o ee0)!on 9a# "aned +
&e "e#onden H)de. 1
I !# &)# 0ea" "o' !nd)+!a+e do0)'en# on "e0o"d &a &e "e)!"e'en# o no!0eand &ea"!n &ad +een #a!#a0o"! 0o'!ed 9!& + &e "e#onden#. T&e "# e""o"
a##!ned !# o%e"")ed.
-
8/20/2019 Credit Cases Surety and Garantor
23/146
T&e e!!one" a##e"# &a &e Co)" o Aea# "a%e e""ed !n &od!n &a &e
a!n!M 9&o o+a!ned H)d'en aa!n# &e deendan 'a ea 0&oo#e o o
d!"e0 ae" &e #)"e !n a 0o)ne"+ond 9!&o) "!o" e&a)#!on o &e deendan#
"oe"!e#. T&!# 0onen!on !# !>e9!#e no 'e"!o"!o)#.
A&o)& &e 0o)ne"+ond 0one'aed !n &e ao"e)oed Se0. 17, R)e 57, o &e
R)e# o Co)" !# an o"d!na" )a"an 9&e"e &e #)"e!e# a##)'e a #)+#!d!a" !a+!!,
&e ")e 0anno a o a 0o)ne"+ond 9&e"e &e #)"e +o)nd !#e Ho!n and
#e%e"a @!n #o!d)' 9!& &e deendan a# !n &e "e#en 0a#e. T&e 0o)ne"+ond
ee0)ed + &e de0ea#ed deendan Fe!0!#!'o V. Ree#, a# "!n0!a, and &e
e!!one", T&e I'e"!a In#)"an0e, In0., a# #o!da" )a"ano" o ! &e aa0&'en !n
C!%! Ca#e No. *(51? !# !n &e oo9!n e"'#$
EREFORE, E, FELICISI=O V. RE-ES, o ea ae, F!!!no, and 9!& o#a add"e##
a San Jo#e, San =!)e, 2)a0an andBo" 1486 2aana# S"ee, Sa. C")/, =an!a, a#
PRINCIPAL and TE I=PERIAL INSURANCE, INC., a 0o"o"a!on d) o"an!/ed and
e!#!n )nde" &e a9# o &e P&!!!ne#, a# SURET-, !n 0on#!de"a!on o &e
d!##o)!on o #a!d aa0&'en, &e"e+ JOINTL- AND SEVERALL-, +!nd o)"#e%e# !n &e
#)' o SIT- TOUSAND PESOS ONL- @P6,666.66, P&!!!ne C)""en0, )nde" &e
0ond!!on &a !n 0a#e &e a!n!M "e0o%e"# H)d'en !n &e a0!on, &e deendan #&a
a &e #)' o SIT- TOUSAND PESOS @P6,666.66, P&!!!ne C)""en0, +e!n &e
a'o)n "eea#e o" aa0&'en, o +e a!ed o &e a'en o &e H)d'en, o" !n
dea) &e"eo, &e S)"e 9!, on de'and, a o &e a!n!M #a!d a'o)n o SIT-
TOUSAND PESOS ONL- @P6,666.66, P&!!!ne C)""en0. @Ca!a!/a!on# #)!ed.
=an!a, P&!!!ne#, J)ne ?6,16. 1?
T&e 0o)ne"+ond ee0)ed + &e #a'e a"!e# !n C!%! Ca#e No. *(514, !>e9!#e
#ae#.
EREFORE, 9e, FELICISI=O V. RE-ES, o ea ae, F!!!no, and 9!& o#a add"e##
a San Jo#e, San =!)e, 2)a0an, andBo" 1486 2aana# S"ee, Sa. C")/, =an!a, a#
PRINCIPAL and TE I=PERIAL INSURANCE, INC., a 0o"o"a!on d) o"an!/ed and
e!#!n )nde" &e a9# o &e P&!!!ne#, a# SURET-, !n 0on#!de"a!on o &e
d!##o)!on o #a!d aa0&'en, &e"e+ JOINTL- and SEVERALL-, +!nd o)"#e%e# !n &e
#)' o FORT- TOUSAND PESOS ONL- @P46,666.66, P&!!!ne C)""en0, )nde" &e
0ond!!on &a !n 0a#e &e a!n!M "e0o%e" H)d'en !n &e a0!on &e deendan #&a
a &e #)' o FORT- TOUSAND PESOS ONL- @P46,666.66, P&!!!ne C)""en0,
+e!n &e a'o)n "eea#ed o" aa0&'en, o +e a!ed o &e a'en o &e H)d'en, o" !n dea) &e"eo, &e S)"e 9!, on de'and, a o &e a!n!M# #a!d
a'o)n o FORT- TOUSAND PESOS ONL- @P46,666.66, P&!!!ne C)""en0.
-
8/20/2019 Credit Cases Surety and Garantor
24/146
@E'&a#!# #)!ed.
=an!a, P&!!!ne#, J)ne ?6&, 16. 14
Cea", &e e!!one", &e I'e"!a In#)"an0e, In0., &ad +o)nd !#e #o!da"! 9!& &e
"!n0!a, &e de0ea#ed deendan Fe!0!#!'o V. Ree#. In a00o"dan0e 9!& A"!0e 65,
a". o &e C!%! Code o &e P&!!!ne#, 15 e0)##!on @"e%!o)# e&a)#!on o &e
"oe" o &e de+o" #&a no a>e a0e ! &e @&e )a"ano" &a# +o)nd &!'#e
#o!da"! 9!& &e de+o". Se0!on 17, R)e 57 o &e R)e# o Co)" 0anno +e
0on#")ed &a an ee0)!on aa!n# &e de+o" +e "# "e)"ned )n#a!#ed e%en !
&e +ond 9e"e a #o!da" one, o" a "o0ed)"a ")e 'a no a'end &e #)+#an!%e
a9 e"e##ed !n &e C!%! Code, and )"&e" 9o)d n)! &e e"e## #!)a!on o &e
a"!e# &a &e #)"e# o+!a!on #&o)d +e #o!da" 9!& &a o &e deendan. 1
en0e &e e!!one" 0anno e#0ae !a+!! on !# 0o)ne"(+ond# +a#ed on &e #e0ond
e""o" a##!ned.
A# "ea"d# &e &!"d e""o", &e e!!one" #)+'!# &a &e Co)" o Aea# e""ed !n no
&od!n &a &e o"de" daed No%e'+e" 16, 1 "ende"!n H)d'en aa!n# &e
0o)ne"(+ond#, a# 9e a# &e o"de" daed Jan)a" , 17, den!n &e 'o!on o"
"e0on#!de"a!on &e"eo, and &e o"de" o &e 9"! o ee0)!on daed Jan)a" 1, 17
a"e na and aeaa+e !n a00o"dan0e 9!& Se0. , R)e 41 o &e Re0. R)e# o Co)".
T&!# #)+'!##!on !# a#o 9!&o) 'e"!.
To "e0o%e" aa!n# &e e!!one" #)"e on !# 0o)ne"(+ond# ! !# no ne0e##a" o e
a #ea"ae a0!on. Re0o%e" and ee0)!on 'a +e &ad !n &e #a'e C!%! Ca#e# No#. *(
51? and *(514, a# #an0!oned + Se0. 17, R)e 57, o &e Re%!#ed R)e# o Co)".
T&e de0!#!on !n C!%! Ca#e# No#. *(51? and *(514, &a%!n +e0o'e na, &e"e#onden H)do !##)ed &e 9"!# o ee0)!on !n #a!d 0a#e#. On A))# 6, 1, &e
P"o%!n0!a S&e"!M o 2)a0an "e)"ned &e 9"!# o ee0)!on )n#a!#ed !n 9&oe o" !n
a". 17
Se0. 1, R)e 57 o &e Re%!#ed R)e# o Co)" 18 #e0!e# &a an aa0&'en 'a +e
d!#0&a"ed )on &e 'a>!n o a 0a#& deo#! o" !n a 0o)ne"+ond !n an a'o)n
e)a o &e %a)e o &e "oe" aa0&ed a# dee"'!ned + &e H)de and &a
)on !n &e 0o)ne"+ond &e "oe" aa0&ed #&a +e de!%e"ed o &e a"
'a>!n &e deo#! o" !%!n &e 0o)ne"+ond o" &e e"#on aea"!n !n &!# +e&a,
&e deo#! o" 0o)ne"+ond #and!n !n a0e o &e "oe" #o "eea#ed.
-
8/20/2019 Credit Cases Surety and Garantor
25/146
T&e 0o)ne"(+ond# 'e"e #and !n a0e o &e "oe"!e# #o "eea#ed. T&e a"e 'e"e
"ea0e'en# o &e "oe"!e# o"'e" aa0&ed, and H)# a# &e ae" 'a +e e%!ed
)on ae" na H)d'en !n &e 0a#e !n o"de" o "ea!/e &e a'o)n adH)ded #o !# &e
!a+!! o &e 0o)ne" #)"e!e# a#0e"a!na+e ae" &e H)d'en &a# +e0o'e na. 1
T&e H)d'en &a%!n +een "ende"ed aa!n# &e deendan, Fe!0!#!'o V. Ree#, &e
0o)ne"(+ond# !%en + &!' and &e #)"e, T&e I'e"!a In#)"an0e, In0., )nde" Se0.
1, R)e 57 a"e 'ade !a+e ae" ee0)!on 9a# "e)"ned )n#a!#ed. Unde" &e #a!d
")e, a de'and #&a +e 'ade )on &e #)"e o a &e a!n!M &e a'o)n d)e on
&e H)d'en, and ! no a'en !# #o 'ade, &e a'o)n 'a +e "e0o%e"ed "o' #)0&
#)"e ae" no!0e and &ea"!n !n &e #a'e a0!on. A #ea"ae a0!on aa!n# &e
#)"e!e# !# no ne0e##a". 6
In &e "e#en 0a#e, &e de'and )on &e e!!one" #)"e 9a# 'ade 9!& d)e no!0e
and &ea"!n &e"eon 9&en &e "!%ae "e#onden# ed &e 'o!on o" "e0o%e" on &e
#)"e +ond# daed See'+e" , 1 and o 9&!0& &e e!!one" ed &e!"
oo#!!on daed See'+e" 4, 1. 1
T&e"eo"e, a &e "e)!#!e# )nde" Se0. 17, R)e 57, +e!n "e#en, na'e$ @1 &e 9"!
o ee0)!on ')# +e "e)"ned )n#a!#ed, !n 9&oe o" !n a" @ &e a!n!M ')#
de'and &e a'o)n d)e )nde" &e H)d'en "o' &e #)"e o" #)"e!e#, and @?no!0e and &ea"!n o #)0& de'and a&o)& !n a #)''a" 'anne", 0o'!ed 9!&,
&e !a+!! o &e e!!one" a)o'a!0a aa0&e#.
In eMe0, &e o"de" daed No%e'+e" 16, 1 "ende"!n H)d'en aa!n# &e 0o)ne"(
+ond# 9a# a #)e")!. T&e "e#onden H)de 0o)d &a%e !##)ed !''ed!ae a 9"! o
ee0)!on aa!n# &e e!!one" #)"e )on de'and.
A# 0o""e0 &ed + &e Co)" o Aea#$
In a0, "e#onden J)de 0o)d &a%e e%en !##)ed a 9"! o ee0)!on aa!n# e!!one"
on !# +ond !''ed!ae ae" !# a!)"e o #a!# &e H)d'en aa!n# &e deendan
)on de'and, #!n0e !a+!! on &e +ond a)o'a!0a aa0&e# ae" &e 9"! o
ee0)!on aa!n# &e deendan 9a# "e)"ned )n#a!#ed a# &ed !n &e 0a#e o T!Han
%#. S!+on&ano, CA(G.R. No. ?(R, De0e'+e" 11, 17.
=o"eo%e", &e na! and non(aeaa+!! o &e o"de" daed No%e'+e" 16, 1 !#
'ade 0e"a!n and a+#o)e 9!& &e !##)an0e o &e o"de" o ee0)!on daed Jan)a"
-
8/20/2019 Credit Cases Surety and Garantor
26/146
1, 17 ? )on &e !n o &e e a"e 'o!on o" 9"! o ee0)!on 4 o 9&!0& &e
e!!one" 9a# d) no!ed + &e "e#onden J)de and 9&!0& 9a# d) &ea"d. 5 T&e
ene"a ")e !# &a an o"de" o ee0)!on !# no aeaa+e, o&e"9!#e a 0a#e 9o)d
ne%e" end. T&e 9o e0e!on# o &!# ")e a"e$ @1 9&e"e &e o"de" o ee0)!on
%a"!e# &e eno" o &e H)d'en and @ 9&en &e e"'# o &e H)d'en a"e no %e"
0ea", and &e"e !# "oo' o" !ne""ea!on. T&e 0a#e a +a" doe# no a )nde" e!&e"
e0e!on. T&e"e !# no #&o9!n &a &e o"de" o ee0)!on %a"!e# &e eno" o &e H)d'en !n C!%! Ca#e# No#. *(51? and *(514, no" o &e o"de" daed No%e'+e" 16,
1, +) !# !n a0, !n 0on#onan0e &e"e9!& and &e e"'# o &e H)d'en a"e 0ea"
and den!e, &e"eo"e, &e ene"a ")e o non(aeaa+!! a!e#.
I !# no one" ne0e##a" o d!#0)## &e o)"& e""o" a##!ned +e0a)#e o &!# Co)"#
nd!n &a &e !a+!! e"e## a##)'ed + &e e!!one" on &e 0o)ne"(+ond# !#
#o!da" 9!& &e "!n0!a de+o", &e de0ea#ed deendan, Fe!0!#!'o V. Ree#. A# a
#o!da" )a"ano", &e e!!one", &e I'e"!a In#)"an0e, In0., !# !a+e o a &e
a'o)n d)e on #)0& 0o)ne"(+ond# #&o)d &e 0"ed!o"#, "!%ae "e#onden# &e"e!n,
0&oo#e o o d!"e0 ae" !. 7
Unde" &e a9 and )nde" &e!" o9n e"'#, &e 0o)ne"(+ond# a"e on 0ond!!oned
)on &e "end!!on o &e H)d'en. A# &ed + &!# Co)" !n &e ao"e0!ed 0a#e o
L)/on See Co"o"a!on %#. S!a 8 9&e"e )nde" &e ")e and &e +ond &e
)nde"a>!n !# o a &e H)d'en, &e !a+!! o &e #)"e o" #)"e!e# aa0&e# )on
&e "end!!on o &e H)d'en, and &e !##)e o an ee0)!on and !# "e)"n n)a +ona
!# no, and #&o)d no +e a 0ond!!on o &e "!& o "e#o" o &e +ond. T&)#, !'ae"# no 9&e&e" &e P"o%!n0!a S&e"!M o 2)a0an, !n 'a>!n &e "e)"n o &e 9"!
o ee0)!on #e"%ed o" d!d no #e"%e a 0o &e"eo 9!& no!0e o aa0&'en on &e
ad'!n!#"a"! o &e !ne#ae e#ae o Fe!0!#!'o V. Ree# and ed a 0o o #a!d 9"!
9!& &e o
-
8/20/2019 Credit Cases Surety and Garantor
27/146
PACIONARIA C. 2A-LON, e!!one", %#. TE ONORA2LE COURT OF APPEALS @Fo"'e"
N!n& D!%!#!on and LEONILA TO=ACRUZ, "e#onden#.
D E C I S I O N
GONZAGA(RE-ES, J.$
T&!# !# a e!!on o" "e%!e9 + 9a o 0e"!o"a"! )nde" R)e 45 o &e Re%!#ed R)e# o
Co)" o &e de0!#!on o &e Co)" o Aea#:1; daed No%e'+e" , 11 !n CA(G.R.
CV No. 777 ano9ed!n "e0e! o &e P156,666 "o' "!%ae "e#onden and
o+!!n &e"#e o a &e o"'e" &e #a!d a'o)n on o" +eo"e A))# , 187.:4;
Pe!!one" #!ned &e "o'!##o" noe, a 0&e0> no. CA4184?7 daed
A))# , 187 aa+e o Leon!a To'a0")/ !n &e a'o)n o P156,666.:5;
S)+#e)en, L)an/on "ea0ed &!# 0&e0> 9!& ano&e" o#daed So!d+an> 0&e0>
no. 4?45 daed De0e'+e" , 187, !n a%o" o &e #a'e aee and 0o%e"!n &e
#a'e a'o)n.:; Se%e"a 0&e0># !n &e a'o)n o P7,566 ea0& 9e"e a#o !##)ed +L)an/on and 'ade aa+e o "!%ae "e#onden.:7;
P"!%ae "e#onden 'ade a 9"!en de'and )on e!!one" o" a'en, 9&!0&
e!!one" d!d no &eed. T&)#, on =a 8, 18, "!%ae "e#onden ed a 0a#e o" &e
0oe0!on o a #)' o 'one 9!& &e Re!ona T"!a Co)" @RTC o *)e/on C!, 2"an0&
88, aa!n# L)an/on and e!!one" &e"e!n, !'ead!n =a"!ano 2aon, &)#+and o
e!!one", a# an add!!ona deendan. o9e%e", #)''on# 9a# ne%e" #e"%ed )on
L)an/on.
-
8/20/2019 Credit Cases Surety and Garantor
28/146
In &e" an#9e", e!!one" den!ed &a%!n )a"aneed &e a'en o &e "o'!##o"
noe !##)ed + L)an/on. S&e 0a!'ed &a "!%ae "e#onden a%e L)an/on &e
'one, no a# a oan, +) "a&e" a# an !n%e#'en !n A" Ene""!#e# and Con#")0!on,
In0. ( &e 0on#")0!on +)#!ne## o L)an/on. F)"&e"'o"e, e!!one" a%e"# &a,
"an!n a")endo &a &e"e 9a# a oan and e!!one" )a"aneed &e #a'e, "!%ae
"e#onden &a# no e&a)#ed &e "oe" o &e "!n0!a de+o" no" &a# #&e
"e#o"ed o a &e ea "e'ed!e# aa!n# &e "!n0!a de+o" a# "e)!"ed + a9.F!na, e!!one" 0a!'# &a &e"e 9a# an een#!on o &e 'a)"! dae o &e oan
9!&o) &e" 0on#en, &)# "eea#!n &e" "o' &e" o+!a!on.:8;
Ae" "!a on &e 'e"!#, &e o9e" 0o)" ")ed !n a%o" o "!%ae "e#onden. In !#
De0!#!on daed J)ne 14, 16, ! #aed &a (
T&e e%!den0e and &e e#!'on!e# on "e0o"d 0ea" e#a+!#&ed a @#!0 a0 &a &e"an#a0!on +e9een &e a!n!M and deendan# 9a# a oan 9!& %e e"0en @5K
'on& !ne"e# and no an !n%e#'en. In a0 &e a ad'!ed !n &e!" e#!'on!e#
&a &e a"e no !%en an #o0> 0e"!0ae +) on "o'!##o" noe# #!'!a" o
E&!+! 2 9&e"e!n ! 9a# 0ea" #aed &a deendan L)an/on 9o)d a &e a'o)n
o !nde+edne## on &e dae d)e. Po#daed 0&e0># 9e"e !##)ed #!')aneo)# 9!&
&e "o'!##o" noe# o ena+e &e a!n!M and o&e"# o 9!&d"a9 &e!" 'one on a
0e"a!n ed !'e. T&!# #&o9# &a &e 9e"e ne%e" a"!0!an# !n &e +)#!ne##
"an#a0!on o deendan L)an/on +) 9e"e 0"ed!o"#.
T&e e%!den0e# "e#ened !>e9!#e #&o9 &a a!n!M and o&e"# oan &e!" 'one o
deendan L)an/on +e0a)#e o &e a##)"an0e o &e 'on& !n0o'e o %e e"0en
@5K o &e!" 'one and &a &e 0o)d 9!&d"a9 ! an!'e ae" &e d)e dae add o
! &e a0 &a &e!" "!end, Pa0!ona"!a 2aon, e"e##e# &e" )ne)!%o0a )"a"anee
o &e a'en o &e a'o)n oaned.
EREFORE, "e'!#e# 0on#!de"ed, H)d'en !# &e"e+ "ende"ed aa!n# &e
deendan# Pa0!ona"!a C. 2aon and =a"!ano 2aon, o a &e a!n!M &e #)' o
P156,666.66, 9!& !ne"e# a &e ea "ae "o' &e !n o &!# 0o'a!n )n! )
a'en &e"eo, o a &e oa #)' o P1,666.66 a# ao"ne# ee# and 0o## o
#)!.:;
On aea, &e "!a 0o)"# de0!#!on 9a# a
-
8/20/2019 Credit Cases Surety and Garantor
29/146
I. RESPONDENT COURT ERRED IN OLDING TAT TE PRIVATE RESPONDENT
TO=ACRUZ AS A CREDITOR OF DEFENDANT LUANZON AND NOT AN INVESTOR IN
TE CONSTRUCTION 2USINESS OF ART ENTERPRISES Q CONSTRUCTION, INC.
II. GRANTING, ITOUT AD=ITTING, TAT PETITIONER(APPELLANT 2A-LON AS A
GUARANTOR AS APPEARING IN TE NOTE @E. A TE RESPONDENT COURT
ERRED IN RULING TAT PETITIONER(APPELLANT 2A-LON IS LIA2LE TO TE PRIVATE
RESPONDENT 2ECAUSE TE LATTER AS NOT TA3EN STEPS TO EAUST TE
PROPERT- OF TE PRINCIPAL DE2TOR AND AS NOT RESORTED TO ALL TE LEGAL
RE=EDIES PROVIDED 2- LA AGAINST TE DE2TOR, DEFENDANT LUANZON.
III. GRANTING, ITOUT AD=ITTING TAT PETITIONER(APPELLANT 2A-LON AS A
GUARANTOR UNDER TAT NOTE @EI2IT A DATED JUNE , 187, TE LOER
COURT ERRED IN RESOLVING TAT SE AS NOT RELEASED FRO= ER GUARANT- 2- TE SU2SE*UENT TRANSACTIONS 2ETEEN TE RESPONDENT(APPELLANT AND
DEFENDANT LUANZON.
A &e o)#e, 9e noe &a e!!one"# 0a!' &a &e a0)a nd!n# o &e o9e"
0o)", 9&!0& 9e"e a# "o' L)an/on !n &e a'o)n o P7,566 "o' J) o De0e'+e", 187,
"e"e#en!n d!%!dend# on &e" !n%e#'en and &e a0 &a o&e" e'oee# o &e
De%eo'en 2an> o &e P&!!!ne# 'ade #!'!a" !n%e#'en# !n L)an/on#
0on#")0!on +)#!ne##.:14;
o9e%e", a &e 0!"0)'#an0e# 'en!oned + e!!one" 0anno o%e""!de &e 0ea" and
)ne)!%o0a e"'# o &e J)ne , 187 "o'!##o" noe 9&e"e+ L)an/on "o'!#ed o
a "!%ae "e#onden &e a'o)n o P156,666 on o" +eo"e A))# , 187. T&e
"o'!##o" noe #ae# a# oo9#$
-
8/20/2019 Credit Cases Surety and Garantor
30/146
J)ne , 187
To &o' I =a Con0e"n$
Fo" %a)e "e0e!%ed, I &e"e+ "o'!#e o a ="#. LEONILA TO=ACRUZ &e a'o)n o
ONE UNDRED FIFT- TOUSAND PESOS ONL- @P156,666.66 on o" +eo"e A))# ,
187.
T&e a+o%e a'o)n !# 0o%e"ed + WWWWW C&e0> No. WWWWW daed A))# , 187.
@#!ned
ROSITA 2. LUANZON
G U R A R A N T O R $
@#!ned
PACIONARIA O. 2A-LON
Te. No. 861(8(66
18 P. =aa S., D2P V!ae
A'an/a, La# P!na#, =.=.:15;
I &e e"'# o a 0on"a0 a"e 0ea" and ea%e no do)+ a# o &e !nen!on o &e
0on"a0!n a"!e#, &e !e"a 'ean!n o !# #!)a!on #&a 0on"o.:1; Re#o" o
e"!n#!0 a!d# and o&e" e"aneo)# #o)"0e# a"e no ne0e##a" !n o"de" o a#0e"a!n &e
a"!e# !nen 9&en &e"e !# no a'+!)! !n &e e"'# o &e a"ee'en.:17; 2o&
e!!one" and "!%ae "e#onden do no den &e d)e ee0)!on and a)&en!0! o&e J)ne , 187 "o'!##o" noe. A o e!!one"# a")'en# a"e d!"e0ed a
)n0o%e"!n &e "ea !nen!on o &e a"!e# !n ee0)!n &e "o'!##o" noe, +) no
-
8/20/2019 Credit Cases Surety and Garantor
31/146
a'o)n o a")'ena!on 9! 0&ane &e a!n !'o" o &e e"'# &e"eo, and
a00o"d!n, no ae' o "ead !no ! an aeed !nen!on o &e a"!e# &e"eo 'a
+e H)#!ed.:18; T&e 0ea" e"'# o &e "o'!##o" noe e#a+!#& a 0"ed!o"(de+o"
"ea!on#&! +e9een L)an/on and "!%ae "e#onden. T&e "an#a0!on a +en0& !#
&e"eo"e a oan, no an !n%e#'en.
I !# e!!one"# 0onen!on &a, e%en &o)& #&e !# &ed o +e a )a"ano" )nde" &e
e"'# o &e "o'!##o" noe, #&e !# no !a+e +e0a)#e "!%ae "e#onden d!d no
e&a)# &e "oe" o &e "!n0!a de+o" and &a# no "e#o"ed o a &e ea
"e'ed!e# "o%!ded + &e a9 aa!n# &e de+o".:1; Pe!!one" !# !n%o>!n &e +ene
o e0)##!on )"#)an o a"!0e 658 o &e C!%! Code, 9&!0& "o%!de# &a (
T&e )a"ano" 0anno +e 0o'eed o a &e 0"ed!o" )ne## &e ae" &a# e&a)#ed
a &e "oe" o &e de+o", and &a# "e#o"ed o a &e ea "e'ed!e# aa!n# &ede+o".
I !# a!o'a!0 &a &e !a+!! o &e )a"ano" !# on #)+#!d!a".:6; A &e
"oe"!e# o &e "!n0!a de+o" ')# "# +e e&a)#ed +eo"e &!# o9n !# e%!ed
)on. T&)#, &e 0"ed!o" 'a &od &e )a"ano" !a+e on ae" H)d'en &a# +een
o+a!ned aa!n# &e "!n0!a de+o" and &e ae" !# )na+e o a, o" o+%!o)# &e
e&a)#!on o &e "!n0!a# "oe" ( &e +ene o 9&!0& &e )a"ano" 0a!'# (
0anno e%en +e!n o a>e a0e +eo"e H)d'en &a# +een o+a!ned.:1; T&!# ")e !#
e'+od!ed !n a"!0e 6 o &e C!%! Code 9&!0& "o%!de# &a &e a0!on +"o)& +&e 0"ed!o" ')# +e ed aa!n# &e "!n0!a de+o" aone, e0e !n #o'e !n#an0e#
9&en &e a0!on 'a +e +"o)& aa!n# +o& &e de+o" and &e "!n0!a de+o".:;
Unde" &e 0!"0)'#an0e# a%a!!n !n &e "e#en 0a#e, 9e &od &a ! !# "e'a)"e o"
&!# Co)" o e%en dee"'!ne 9&e&e" o" no e!!one" !# !a+e a# a )a"ano" and
9&e&e" #&e !# en!ed o &e 0on0o'!an "!&# a# #)0&, !>e &e +ene o e0)##!on,
#!n0e &e 'o# +a#!0 "e"e)!#!e !# 9an!n ( &a !#, no H)d'en 9a# "# o+a!ned
aa!n# &e "!n0!a de+o" Ro#!a 2. L)an/on. I !# )#ee## o #ea> o a )a"ano"
9&en no de+o" &a# +een &ed !a+e o" &e o+!a!on 9&!0& !# aeed #e0)"ed +
#)0& )a"anee. A&o)& &e "!n0!a de+o" L)an/on 9a# !'eaded a# deendan,
&e"e !# no&!n !n &e "e0o"d# o #&o9 &a #)''on# 9a# #e"%ed )on &e". T&)#, &e
"!a 0o)" ne%e" e%en a0)!"ed H)"!#d!0!on o%e" &e "!n0!a de+o". e &od &a
"!%ae "e#onden ')# "# o+a!n a H)d'en aa!n# &e "!n0!a de+o" +eo"e
a##)'!n o ")n ae" &e aeed )a"ano".
IN VIE OF TE FOREGOING, &e e!!on !# "aned and &e )e#!oned De0!#!on o
&e Co)" o Aea# daed No%e'+e" , 11 and Re#o)!on daed A"! 7, 1?
a"e SET ASIDE. No "ono)n0e'en a# o 0o##.
-
8/20/2019 Credit Cases Surety and Garantor
32/146
SO ORDERED.
:G.R. No. 15166. A))# ?1, 665;
JN DEVELOP=ENT CORPORATION, and SPS. RODRIGO and LEONOR STA. ANA,
e!!one"#, %#. PILIPPINE EPORT AND FOREIGN LOAN GUARANTEE CORPORATION,
"e#onden.
:G.R. No. 151?11. A))# ?1, 665;
NARCISO V. CRUZ, e!!one", %#. PILIPPINE EPORT and FOREIGN LOAN GUARANTEE
CORPORATION, "e#onden.
D E C I S I O N
TINGA, J.$
2eo"e )# a"e 0on#o!daed e!!on# )e#!on!n &e De0!#!on:1; o &e Co)" o
Aea# @CA !n CA(G.R. CV No. 1?18, en!ed P&!!!ne Eo" and Fo"e!n Loan
G)a"anee Co"o"a!on %. JN De%eo'en Co"o"a!on, e a., 9&!0& "e%e"#ed &e
De0!#!on o &e Re!ona T"!a Co)" @RTC o =a>a!, 2"an0& 6.
On 1? De0e'+e" 17, e!!one" JN De%eo'en Co"o"a!on @JN and T"ade"# Roa
2an> @TR2 ene"ed !no an a"ee'en 9&e"e+ TR2 9o)d eend o JN an Eo"
Pa0>!n C"ed! L!ne o" T9o =!!on Pe#o# @P,666,666.66. T&e oan 9a# 0o%e"ed +
#e%e"a #e0)"!!e#, !n0)d!n a "ea e#ae 'o"ae:; and a ee" o )a"anee "o'
"e#onden P&!!!ne Eo" and Fo"e!n Loan G)a"anee Co"o"a!on @P&!G)a"anee,
no9 T"ade and In%e#'en De%eo'en Co"o"a!on o &e P&!!!ne#, 0o%e"!n
#e%en e"0en @76K o &e 0"ed! !ne.:?; !& P&!G)a"anee !##)!n a )a"anee !n
a%o" o TR2,:4; JN, e!!one" #o)#e# Rod"!o and Leono" Sa. Ana:5; and e!!one"
Na"0!#o C")/:; ee0)ed a Deed o Unde"a>!n:7; @Unde"a>!n o a##)"e "ea'eno P&!G)a"anee.
I aea"# &a JN a!ed o a &e oan o TR2 )on !# 'a)"! &)#, on 8 O0o+e"
186 TR2 "e)e#ed P&!G)a"anee o 'a>e ood !# )a"anee.:8; P&!G)a"anee
!no"'ed JN a+o) &e 0a 'ade + TR2, and !n)!"ed a+o) &e a0!on o JN o #ee
&e oan.:; a%!n "e0e!%ed no "e#on#e "o' JN, on 16 =a"0& 181 P&!G)a"anee
a!d TR2 N!ne )nd"ed T&!" Fo)" T&o)#and E!& )nd"ed T9en Fo)" Pe#o# and
T&!" Fo)" Cena%o# @P?4,84.?4.:16; S)+#e)en, P&!G)a"anee 'ade #e%e"a
de'and# on JN, +) &e ae" a!ed o a. On ?6 =a 18?, JN, &"o)& Rod"!o Sa.Ana, "oo#ed o #ee &e o+!a!on + 9a o de%eo'en and #ae o &e
'o"aed "oe".:11; P&!G)a"anee, &o9e%e", "eHe0ed &e "oo#a.
-
8/20/2019 Credit Cases Surety and Garantor
33/146
P&!G)a"anee &)# ed a Co'a!n:1; o" 0oe0!on o 'one and da'ae# aa!n#
&e"e!n e!!one"#.
In !# De0!#!on daed 6 A))# 18, &e RTC d!#'!##ed P&!G)a"anee# Co'a!n a#9e a# &e 0o)ne"0a!' o e!!one"#. I ")ed &a e!!one"# a"e no !a+e o
"e!'+)"#e P&!G)a"anee 9&a ! &ad a!d o TR2. C")0!a o &!# &od!n 9a# &e
0o)"# nd!n &a TR2 9a# a+e o o"e0o#e &e "ea e#ae 'o"ae ee0)ed + JN,
&)# e!n)!#&!n e!!one"# o+!a!on.:1?; =o"eo%e", &e"e 9a# no #&o9!n &a
ae" &e #a!d o"e0o#)"e, TR2 &ad de'anded "o' JN an de0!en0 o" &e a'en
o &e d!Me"en0e +e9een &e "o0eed# o &e o"e0o#)"e #ae and &e a0)a oan.:14;
In add!!on, &e RTC &ed &a #!n0e P&!G)a"anee# )a"anee 9a# ood o" on one
ea" "o' 17 De0e'+e" 17, o" )n! 17 De0e'+e" 186, and #!n0e ! 9a# no
"ene9ed ae" &e e!" o #a!d e"!od, P&!G)a"anee &ad no 'o"e ea d) o a
TR2 on 16 =a"0& 181.:15; T&e RTC !>e9!#e ")ed &a C")/ 0anno +e &ed !a+e)nde" &e Unde"a>!n #!n0e &e 9a# no &e one 9&o #!ned &e do0)'en, !n !ne 9!&
!# nd!n &a &!# #!na)"e o)nd !n &e "e0o"d# !# oa d!Me"en "o' &e #!na)"e
on &e Unde"a>!n.:1;
A00o"d!n o &e RTC, &e a!)"e o TR2 o #)e JN o" &e "e0o%e" o &e oan "e0)de#
P&!G)a"anee "o' #ee>!n "e0o)'en "o' &e #o)#e# Sa. Ana and C")/ 9&a !
a!d o TR2. T&)#, P&!G)a"anee# a'en o TR2 a'o)n# o a 9a!%e" o !# "!&
)nde" A". 658 o &e C!%! Code.:17;
A"!e%ed + &e RTC De0!#!on, P&!G)a"anee aeaed o &e CA. T&e aeae 0o)"
"e%e"#ed &e RTC and o"de"ed e!!one"# o a P&!G)a"anee N!ne )nd"ed T&!"
Fo)" T&o)#and S! )nd"ed T9en Fo)" Pe#o# and T&!" Fo)" Cena%o#
@P?4,4.?4, )# #e"%!0e 0&a"e and !ne"e#.:18;
In "ea0&!n !# deno)e'en, &e CA &ed &a &e RTC# nd!n &a &e oan 9a#
e!n)!#&ed + %!")e o &e o"e0o#)"e #ae o &e 'o"aed "oe" &ad noa0)a #)o",:1; and &a #)0& nd!n !# neaed + Rod"!o Sa. Ana# e#!'on
&a JN d!d no "e0e!%e an no!0e o o"e0o#)"e "o' P&!G)a"anee o" "o' TR2. :6;
=o"eo%e", Sa. Ana e%en oMe"ed &e #a'e 'o"aed "oe" o P&!G)a"anee o
#ee !# o+!a!on# 9!& &e ae".:1;
T&e CA a#o ")ed &a JN# o+!a!on &ad +e0o'e d)e and de'anda+e 9!&!n &e one(
ea" e"!od o eMe0!%! o &e )a"anee &)#, P&!G)a"anee# a'en o TR2
0ono"'ed 9!& !# )a"anee, a&o)& &e a'en !#e 9a# eMe0ed one ea" ae"
&e 'a)"! dae o &e oan.:; Con"a" o &e "!a 0o)"# nd!n, &e CA ")ed &a&e 0on"a0 o )a"anee 9a# no e!n)!#&ed + &e aeed a0> o e%!den0e on
P&!G)a"anee# 0on#en o &e een#!on# "aned + TR2 o JN.:?; Ine""e!n A".
-
8/20/2019 Credit Cases Surety and Garantor
34/146
658 o &e C!%! Code,:4; &e aeae 0o)" ea!ned &a 9&!e &e "o%!#!on
#ae# &a &e )a"ano" 0anno +e 0o'eed o a )ne## &e "oe"!e# o &e
de+o" a"e e&a)#ed, &e )a"ano" !# no "e0)ded "o' 9a!%!n &e +ene o
e0)##!on and a!n &e o+!a!on aoe&e".:5;
F!na, &e CA o)nd &a Na"0!#o C")/ 9a# )na+e o "o%e &e aeed o"e" o &!#
#!na)"e !n &e Unde"a>!n, &e e%!den0e "e#ened no +e!n #) o 'e"!. T&e CA ")ed &a &e
do0)'ena" e%!den0e "e#ened + e!!one"# 0anno +e 0on#!de"ed a# ne9
d!#0o%e"ed e%!den0e, ! +e!n a"ead !n e!#en0e 9&!e &e 0a#e 9a# end!n +eo"e&e "!a 0o)", &e %e" o")' +eo"e 9&!0& ! #&o)d &a%e +een "e#ened. 2e#!de#, a
o"e0o#)"e #ae e" #e !# no "oo o e!!one"# a'en o &e oan o
P&!G)a"anee, &e CA added.:7;
So no9 +eo"e &e Co)" a"e &e #ea"ae e!!on# o" "e%!e9 o &e CA De0!#!on. JN
and &e #o)#e# Sa. Ana, e!!one"# !n G.R. No. 15166, o#! &a &e CA e""ed !n
!ne""e!n A"!0e# 67, 658, and 65 o &e C!%! Code !n !# De0!#!on.:8;
=ean9&!e, e!!one" Na"0!#o C")/ !n G.R. No. 151?11 0a!'# &a &e CA e""ed 9&en !
&ed &a e!!one"# a"e !a+e o P&!G)a"anee de#!e !# a'en ae" &ee!"a!on o !# 0on"a0 o )a"anee and &e a0> o P&!G)a"anee# 0on#en o &e
een#!on# "aned + TR2 o JN. =o"eo%e", C")/ )e#!on# &e "e%e"#a o &e ")!n o
&e "!a 0o)" anen &!# !a+!! a# a #!nao" o &e Unde"a>!n.:;
On &e o&e" &and, P&!G)a"anee 'a!na!n# &a &e dae o dea), no &e a0)a
dae o a'en, dee"'!ne# &e !a+!! o &e )a"ano" and &a &a%!n a!d TR2
9&en &e oan +e0a'e d)e, ! #&o)d +e !nde'n!ed + e!!one"#.:?6; I a")e# &a,
0on"a" o e!!one"# 0a!', &e"e 0o)d +e no 9a!%e" o !# "!& o e0)##!on 'o"e
e!0! &an !# a0 o a'en o TR2 %e" d!"e0.:?1; 2e#!de#, &e "!& o e0)##!on
!# o" &e +ene o &e )a"ano" and !# no a deen#e o" &e de+o" o "a!#e and )#e
o e%ade !a+!!.:?; F!na, P&!G)a"anee 'a!na!n# &a &e"e !# no #)!n, 9&!0& !# a
noa"!/ed do0)'en and a# #)0& ')# +e a00o"ded &e "e#)'!on o "e)a"!.:??;
T&e Co)" nd# o" P&!G)a"anee.
Unde" a 0on"a0 o )a"anee, &e )a"ano" +!nd# &!'#e o &e 0"ed!o" o ) &e
o+!a!on o &e "!n0!a de+o" !n 0a#e &e ae" #&o)d a! o do #o.:?4; T&e
-
8/20/2019 Credit Cases Surety and Garantor
35/146
)a"ano" 9&o a# o" a de+o", !n )"n, ')# +e !nde'n!ed + &e ae".:?5;
o9e%e", &e )a"ano" 0anno +e 0o'eed o a &e 0"ed!o" )ne## &e ae" &a#
e&a)#ed a &e "oe" o &e de+o" and "e#o"ed o a &e ea "e'ed!e# aa!n#
&e de+o".:?; T&!# !# 9&a !# o&e"9!#e >no9n a# &e +ene o e0)##!on.
I !# 0ea" &a e0)##!on 'a on +e !n%o>ed ae" ea "e'ed!e# aa!n# &e
"!n0!a de+o" &a%e +een eanded. T&)#, ! 9a# &ed &a &e 0"ed!o" ')# "#
o+a!n a H)d'en aa!n# &e "!n0!a de+o" +eo"e a##)'!n o ")n ae" &e
aeed )a"ano", o" o+%!o)# &e e&a)#!on o &e "!n0!a# "oe" 0anno e%en
+e!n o a>e a0e +eo"e H)d'en &a# +een o+a!ned.:?7; T&e a9 !'o#e#
0ond!!on# "e0eden o" &e !n%o0a!on o &e deen#e. T&)#, !n o"de" &a &e
)a"ano" 'a 'a>e )#e o &e +ene o e0)##!on, &e ')# #e ! ) aa!n# &e
0"ed!o" )on &e ae"# de'and o" a'en and o!n o) o &e 0"ed!o" a%a!a+e
"oe" o &e de+o" 9!&!n &e P&!!!ne# #)e )#e o ! o" 9a!%e !. P&!G)a"anee#
9a!%e" o &e "!& o e0)##!on 0anno "e%en ! "o' de'and!n "e!'+)"#e'en
"o' e!!one"#. T&e a9 0ea" "e)!"e# &e de+o" o !nde'n! &e )a"ano" 9&a
&e ae" &a# a!d.:?;
Pe!!one"# 0a!' &a P&!G)a"anee &ad no 'o"e o+!a!on o a TR2 +e0a)#e o &e
aeed e!"a!on o &e 0on"a0 o )a"anee !# )nena+e. T&e )a"anee, daed17
De0e'+e" 17, #ae#$
In &e e%en o dea) + JNDC and a# a 0on#e)en0e &e"eo, PILGUARANTEE !#
'ade o a !# o+!a!on a"!#!n )nde" &e ao"e#a!d )a"anee PILGUARANTEE #&a
a &e 2AN3 &e a'o)n o P1.4 '!!on o" 76K o &e oa o+!a!on )na!d
. . . .
T&!# )a"anee #&a +e %a!d o" a e"!od o one @1 ea" "o' dae &e"eo +) 'a +e
"ene9ed )on a'en + JNDC o &e )a"anee ee a &e #a'e "ae o 1.5K e"
ann)'.:46;
T&e )a"anee 9a# on ) o 17 De0e'+e" 186. JN# o+!a!on 9!& TR2 e d)e on
?6 J)ne 186, and de'and on P&!G)a"anee 9a# 'ade + TR2 on 68 O0o+e" 186.
T&a a'en 9a# a0)a 'ade on on 16 =a"0& 181 doe# no a>e ! o) o &e
-
8/20/2019 Credit Cases Surety and Garantor
36/146
e"'# o &e )a"anee. &a !# 0on"o!n !# &a dea) and de'and on
P&!G)a"anee &ad a>en a0e 9&!e &e )a"anee 9a# #! !n o"0e.
T&e"e !# !>e9!#e no 'e"! !n e!!one"# 0a!' &a P&!G)a"anee# a!)"e o !%e !#
e"e## 0on#en o &e aeed een#!on# "aned + TR2 o JN &ad e!n)!#&ed &e
)a"anee. T&e "e)!"e'en &a &e )a"ano" #&o)d 0on#en o an een#!on
"aned + &e 0"ed!o" o &e de+o" )nde" A". 67 !# o" &e +ene o &e
)a"ano". A# #)0&, ! !# !>e9!#e 9a!%a+e + &e )a"ano". T&)#, e%en a##)'!n &a
een#!on# 9e"e !ndeed "aned + TR2 o JN, P&!G)a"anee 0o)d &a%e oed o
9a!%e &e need o" 0on#en o #)0& een#!on#. Indeed, a )a"ano" !# no "e0)ded
"o' 9a!%!n &!# "!& o +e no!ed o o" o !%e &!# 0on#en o een#!on# o+a!ned +
&e de+o". S)0& 9a!%e" !# no 0on"a" o )+!0 o!0 a# ! !# )"e e"#ona and
doe# no aMe0 )+!0 !ne"e#.:41; In &e !n#an 0a#e, P&!G)a"anee# 9a!%e" 0an +e
!ne""ed "o' !# a0)a a'en o TR2 ae" &e ae"# de'and, de#!e JN# a!)"e o
a &e "ene9aB)a"anee ee a# !nd!0aed !n &e )a"anee.:4;
Fo" &e a+o%e "ea#on#, &e"e !# no +a#!# o" e!!one"# 0a!' &a P&!G)a"anee 9a# a
'e"e %o)nee" ao" and &ad no ea o+!a!on o a TR2. T&e a9 doe# no
"o&!+! &e a'en + a )a"ano" on &!# o9n %o!!on, &eede## o &e +ene o
e0)##!on. In a0, ! "e0on!/e# &e "!& o a )a"ano" o "e0o%e" 9&a ! &a# a!d,
e%en ! a'en 9a# 'ade +eo"e &e de+ +e0o'e# d)e,:4?; o" ! 'ade 9!&o)
no!0e o &e de+o",:44; #)+He0 o 0o)"#e o #o'e 0ond!!on#.
Pe!!one"# !n%o0a!on o o)" ")!n !n !e Pa#!0 Ind)#"!e#, Co". %. Co)" o
Aea#:45; !# '!#a0ed, ! no !""ee%an. In &e #a!d 0a#e, &e )a"ano" 0a!'ed &a
! 0o)d no +e "o0eeded aa!n# 9!&o) "# e&a)#!n a o &e "oe"!e# o &e
de+o". T&e Co)", nd!n &a &e"e 9a# an e"e## "en)n0!a!on o &e +ene o
e0)##!on !n &e 0on"a0 o )a"anee, ")ed aa!n# &e )a"ano".
T&e 0!ed 0a#e nd# no a!0a!on !n &e 0a#e a )o. P&!G)a"anee !# no !n%o>!n &e
+ene o e0)##!on. I 0anno +e o%e"e'&a#!/ed &a e0)##!on !# a "!& "aned o
&e )a"ano" and, &e"eo"e, on &e 'a !n%o>e ! a &!# d!#0"e!on.
T&e +ene o e0)##!on, a# 9e a# &e "e)!"e'en o 0on#en o een#!on# o
a'en, !# a "oe0!%e de%!0e e"a!n!n o and 0one""ed on &e )a"ano". T&e#e
'a +e !n%o>ed + &e )a"ano" aa!n# &e 0"ed!o" a# deen#e# o +a" &e
)n9a""aned eno"0e'en o &e )a"anee. o9e%e", P&!G)a"anee d!d no a%a! o
&e#e deen#e# 9&en ! a!d !# o+!a!on a00o"d!n o &e eno" o &e )a"anee
on0e de'and 9a# 'ade on !. &a !# e0)!a" !n &e !n#an 0a#e !# &a e!!one"#,
&e "!n0!a de+o"# &e'#e%e#, a"e ')dd!n &e !##)e# and "a!#!n &e #a'e
deen#e# aa!n# &e )a"ano", 9&!0& on &e )a"ano" 'a !n%o>e aa!n# &e
0"ed!o", o a%o!d a'en o &e!" o9n o+!a!on o &e )a"ano". T&e Co)" 0anno
-
8/20/2019 Credit Cases Surety and Garantor
37/146
0o)nenan0e &e!" #e(#ee>!n de#!"e o +e eone"aed "o' &e d) o "e!'+)"#e
P&!G)a"anee ae" ! &ad a!d TR2 on &e!" +e&a and o )nH)# en"!0& &e'#e%e#
a &e een#e o P&!G)a"anee.
Pe!!one"# a##e" &a TR2# aeed o"e0o#)"e o &e "ea e#ae 'o"ae o%e" &e
and ee0)ed a# #e0)"! o" &e oan a"ee'en &ad e!n)!#&ed P&!G)a"anee#
o+!a!on &)#, P&!G)a"anee# "e0o)"#e #&o)d +e d!"e0ed aa!n# TR2, a# e" &e
a"!(a##) "o%!#!on:4; !n &e 0on"a0 o )a"anee.:47; e d!#a"ee.
T&e o"e0o#)"e 9a# 'ade on 7 A))# 1?, ae" &e 0a#e 9a# #)+'!ed o"
de0!#!on !n 1 and +eo"e &e !##)an0e o &e de0!#!on o &e 0o)" a )o !n 18.
:48; T&)#, o"e0o#)"e 9a# "e#o"ed o + TR2 aa!n# JN 9&en &e +o& &ad +e0o'e
a9a"e &a P&!G)a"anee &ad a"ead a!d TR2 and &a &e"e 9a# a end!n 0a#e
ed + P&!G)a"anee aa!n# e!!one"#. T&!# 'ae" 9a# no "a!#ed and "o%ed !n&e "!a 0o)", no" !n &e aea +eo"e &e CA, +) "a!#ed o" &e "# !'e !n
e!!one"# 'o!on o" "e0on#!de"a!on !n &e CA. In &e!" aean# 2"!e, e!!one"#
0a!'ed &a &e"e 9a# no need o" &e deendan(aeee JNDC o "e#en an
e%!den0e +eo"e &e o9e" 0o)" o #&o9 &a !ndeed o"e0o#)"e o &e RE= oo> a0e.
:4; A# "oe" &ed + &e CA,
F!"#, &e do0)'en# e%!den0!n o"e0o#)"e o 'o"ae 0anno +e 0on#!de"ed a#
ne9 d!#0o%e"ed e%!den0e. T&e #a!d do0)'en# 9e"e a"ead #)+#!#!n and #&o)d
&a%e +een "e#ened d)"!n &e "!a o &e 0a#e. T&e aeed o"e0o#)"e #ae 9a#'ade on A))# ?, 1? 9&!e &e de0!#!on 9a# "ende"ed + &e "!a 0o)" on A))#
6, 18 a+o) %e @5 ea"# &e"eae". T&e#e do0)'en# 9e"e !>e9!#e no #)+'!ed
+ &e deendan#(aeee# 9&en &e #)+'!ed &e!" aeee# 2"!e o &!# Co)".
T&)#, &e#e 0anno +e 0on#!de"ed a# ne9 d!#0o%e"ed e%!den0e +) a"e 'o"e 0o""e0
a#0"!+ed a# #)"e##ed o"oen e%!den0e Se0ond, &e aeed o"e0o#)"e #ae !#
no "oo o a'en o &e oan + deendan(aeee# o &e a!n!M#(aean#.
:56;
2e#!de#, &e 0o'a!n a )o 9a# ed + P&!G)a"anee a# )a"ano" o" JN, and !#
0a)#e o a0!on 9a# "e'!#ed on !# a'en o JN# o+!a!on ae" &e ae"# dea).
P&!G)a"anee 9a# 9e 9!&!n !# "!&# o de'and "e!'+)"#e'en o" #)0& a'en
'ade, "ea"de## o 9&e&e" &e 0"ed!o", TR2, 9a# #)+#e)en a+e o o+a!n
a'en "o' JN. I do)+e a'en 9a# !ndeed 'ade, &en ! !# JN 9&!0& #&o)d o
ae" TR2, and no P&!G)a"anee. Pe!!one"# &a%e no one o +a'e +) &e'#e%e#,
&a%!n ao9ed &e o"e0o#)"e o &e "oe" o" &e ) %a)e o &e oan de#!e
>no9ede o P&!G)a"anee# a'en o TR2. a%!n +een a9a"e o #)0& a'en,
&e #&o)d &a%e oo#ed &e o"e0o#)"e, o" a &e %e" ea#, ed a #)e'ena
ead!n 9!& &e "!a 0o)" !no"'!n &e #a'e o &e o"e0o#)"e #ae.
-
8/20/2019 Credit Cases Surety and Garantor
38/146
L!>e9!#e, e!!one"# 0anno !n%o>e &e a"!(a##) 0a)#e !n &e )a"anee, no +e!n
a"!e# o &e #a!d a"ee'en. T&e 0a)#e !# 0ea" o" &e +ene o &e )a"ano"
and no o&e".
T&e Co)" noe# &e ee":51; o Rod"!o Sa. Ana oMe"!n, + 9a o #ee'en o JN#
o+!a!on# o P&!G)a"anee, &e %e" #a'e a"0e o and 'o"aed a# #e0)"! o"
&e oan a"ee'en. T&!# )"&e" 9ea>en# &e o#!!on o e!!one"#, #!n0e ! +e0o'e#
o+%!o)# &a &e a0>no9eded &e a'en 'ade + P&!G)a"anee on &e!" +e&a
and &a &e 9e"e !n a0 9!!n o neo!ae 9!& P&!G)a"anee o" &e #ee'en o
&e #a!d o+!a!on +eo"e &e !n o &e 0o'a!n a )o.
Anen &e !##)e o o"e", &e CA !# 0o""e0 !n "e%e"#!n &e de0!#!on o &e "!a 0o)".
Sa%e o" &e den!a o Na"0!#o C")/ &a ! 9a# no &!# #!na)"e !n &e Unde"a>!n and
&e e")n0o" 0o'a"!#on o &e #!na)"e#, no&!n !n &e "e0o"d# 9o)d #)o"&e 0a!' o o"e". Fo"e" 0anno +e "e#)'ed and ')# +e "o%ed + 0ea",
o#!!%e and 0on%!n0!n e%!den0e and &e +)"den o "oo !e# on &e a" ae!n
o"e".:5; =e"e den!a 9! no #)!n, 9&!0& !# a noa"!/ed do0)'en, &a# !n !# a%o" &e "e#)'!on o
"e)a"!, and 0a""!e# &e e%!den!a" 9e!& 0one""ed )on ! 9!& "e#e0 o !# d)e
ee0)!on.:5?; E%en !n 0a#e# 9&e"e &e aeed o"ed #!na)"e 9a# 0o'a"ed o
#a'e# o en)!ne #!na)"e# o #&o9 !# %a"!an0e &e"e"o', &!# Co)" #! o)nd
#)0& e%!den0e !n#)
-
8/20/2019 Credit Cases Surety and Garantor
39/146
=ANILA SURET- Q FIDELIT- CO., INC., a!n!M(aean,
%#.
NOE=I AL=EDA, do!n +)#!ne## )nde" &e na'e and #e o AL=EDA TRADING,
GENEROSO ES*UILLO and NATIONAL =AR3ETING CORPORATION, deendan#(aeee#.
De Sano# Q Deno o" a!n!M(aean.
Go%e"n'en Co"o"ae Co)n#e Leoodo =. A+ee"a and T"!a Ao"ne A"#en!o J.
=eae o" deendan(aeee Na!ona =a">e!n Co"o"a!on.
RE-ES, J.2.L., J.$
T&!# !# an aea "o' &e ")!n o &e Co)" o F!"# In#an0e o =an!a, "ende"ed !n
C!%! Ca#e No. 518, &a &e !n#o%en0 o a de+o"("!n0!a doe# no "eea#e &e#)"e "o' !# o+!a!on o &e 0"ed!o" )nde" &e +ond.
T&e o9e" 0o)" o)nd &a on 4 De0e'+e" 11, Noe'! A'eda, 'a""!ed o Gene"o#o
E#)!o, and do!n +)#!ne## )nde" &e na'e and #e o A'eda T"ad!n, ene"ed !no
a 0on"a0 9!& &e Na!ona =a">e!n Co"o"a!on @NA=ARCO o" &e )"0&a#e o
ood# on 0"ed!, aa+e !n ?6 da# "o' &e dae# o de!%e"!e# &e"eo. A# "e)!"ed
+ &e NA=ARCO, a +ond o" P5,666.66, )nde"a>en + &e =an!a S)"e Q F!de!
Co., In0. @E&!+! A, 9a# o#ed + &e )"0&a#e" o #e0)"e &e ae"# a!&)
0o'!an0e 9!& &e e"'# o &e 0on"a0. T&e a"ee'en 9a# ae" #)e'ened on17 O0o+e" 1 and a ne9 +ond o" &e #a'e a'o)n o P5,666.66, a#o )nde"a>en
+ &e =an!a S)"e Q F!de! Co., In0. @E&!+! C, 1 9a# !%en !n a%o" o &e
NA=ARCO T&e +ond# )n!o"' 0ona!ned &e oo9!n "o%!#!on#$
. S&o)d &e P"!n0!a# a00o)n on an )"0&a#e +e no a!d on !'e, &en
&e S)"e, #&a, )on de'and, a #a!d a00o)n !''ed!ae o &e NA=ARCO
?. S&o)d &e a00o)n o &e P"!n0!a e0eed &e a'o)n o FIVE TOUSAND
@P5,666.66 PESOS, P&!!!ne C)""en0, #)0& e0e## ) o 9en @6K e" 0en o
-
8/20/2019 Credit Cases Surety and Garantor
40/146
#a!d a'o)n #&a a#o +e dee'ed #e0)"ed + &!# 2ond
4. T&e S)"e e"e## 9a!%e# !# "!& o de'and a'en and no!0e o non(
a'en and a"eed &a &e !a+!! o &e S)"e #&a +e d!"e0 and !''ed!ae and
no 0on!nen )on &e e&a)#!on + &e NA=ARCO o 9&ae%e" "e'ed!e# ! 'a
&a%e aa!n# &e P"!n0!a and #a'e #&a +e %a!d and 0on!n)o)# )n! &e o+!a!on
#o )a"aneed !# a!d !n ) and
5. T&e S)"e a#o 9a!%e# !# "!& o +e no!ed o an een#!on o &e e"'#
o a'en 9&!0& &e NA=ARCO 'a !%e o &e P"!n0!a, ! +e!n )nde"#ood &a
9e"e een#!on !# !%en o #a!# &e a00o)n, &a #)0& een#!on #&a no e!n)!#&
&e )a"an )ne## &e #a'e !# 'ade aa!n# &e e"e## 9!#& o &e S)"e.
T&e "e0o"d# #&o9 &a on 8 J)ne 15, &e 'a">e!n "' de'anded "o' &e
)"0&a#e" A'eda T"ad!n &e #ee'en o !# +a0> a00o)n# 9&!0&, a# o 15 =a
15, aeed a'o)ned o P1,??5.6. F)"n!#&ed 9!& 0o o &e NA=ARCO#
de'and( ee", &e #)"e 0o'an &e"eae" a#o 9"oe o &e #a!d )"0&a#e" )"!n
! o !)!dae !# )n#eed a00o)n# 9!& &e NA=ARCO @E&!+! E(1. I aea"#,
&o9e%e", &a "e%!o)# o &!#, o" on =a"0& 15, Gene"o#o E#)!o !n#!)ed
%o)na" !n#o%en0 "o0eed!n !n &e Co)" o F!"# In#an0e o La)na @S. P"o0. No.
SP(181, and + o"de" o #a!d 0o)" o A"! 15, &e 9a# de0a"ed !n#o%en, 9!&
!#ed 0"ed!# a'o)n!n o P111,87?.66 and "oe"!e# %a)ed a P?,6,66.66. In &e
'ee!n o &e na'ed 0"ed!o"# o &e !n#o%en &ed on 14 =a 15 o" &e )"o#eo ee0!n &e a##!nee o &!# "oe"!e#, &e NA=ARCO 9a# "e"e#ened and !#
0on!nen 0a!' d) "e!#e"ed. ?
On 16 See'+e" 15, &e =an!a S)"e Q F!de! Co., In0., 0o''en0ed !n &e Co)"
o F!"# In#an0e o =an!a C!%! Ca#e No. 518 aa!n# &e #o)#e# Noe'! A'eda and
Gene"o#o E#)!o, and &e NA=ARCO, o #e0)"e !# "eea#e "o' !a+!! )nde" &e
+ond# ee0)ed !n a%o" o NA=ARCO. T&e a0!on 9a# +a#ed on &e aea!on &a &e
deendan #o)#e# &ad +e0o'e !n#o%en and &a deendan NA=ARCO &ad "e#0!nded
!# a"ee'en 9!& &e' and &ad a"ead de'anded a'en o &e o)#and!n
a00o)n# o &e 0o)e.
Deendan NA=ARCO ed !# an#9e" den!n &e a%e"'en# o &e 0o'a!n and
#e!n ), a# a
-
8/20/2019 Credit Cases Surety and Garantor
41/146
Pa!n!M(aean# a0!on o #e0)"e !# d!#0&a"e "o' &e #)"e#&! 9a# +a#ed on
A"!0e 671 o &e C!%! Code, 4 &!0& "o%!de# &e #)"e 9!& 0e"a!n "oe0!%e
"e'ed!e# &a 'a +e "e#o"ed o +eo"e &e &a# a!d, +) ae" &e &a# +e0o'e !a+e
o do #o. 5
Uon &e o&e" &and, &e o9e" 0o)"# ")!n, no9 on aea, !# an0&o"ed on an
e)a e!0! "o%!#!on o &e In#o%en0 a9 @ A0 15, a# a'ended, o 9"!$.
SEC. 8. ...
No d!#0&a"e @o &e !n#o%en "o' &!# o+!a!on# #&a "eea#e, d!#0&a"e o" aMe0an e"#on !a+e o" &e #a'e de+, o" o" 9!& &e de+o", e!&e" a# a"ne", Ho!n
0on"a0o", !ndo"#e", #)"e, o" o&e"9!#e.
T&e !##)e o#ed + &!# aea, &e"eo"e, !# 9&e&e" a #)"e 0an a%a! !#e o &e
"e!e, #e0!0a aMo"ded !n A"!0e 671 o &e C!%! Code and +e "eea#ed "o' !#
!a+!! )nde" &e +ond#, no9!and!n a "!o" de0a"a!on o &e !n#o%en0 o &e
de+o"("!n0!a !n an !n#o%en0 "o0eed!n.
e #ee no "e%e"#!+e e""o" !n &e de0!#!on aeaed.
T&e"e !# no )e#!on &a )nde" &e +ond# o#ed !n a%o" o &e NA=ARCO !n &!#
0a#e, &e #)"e 0o'an a##)'ed o 'a>e !''ed!ae a'en o #a!d "' o an
d)e and )n#eed a00o)n# o &e de+o"("!n0!a, e%en 9!&o) de'and and no!0e
o &e de+o"# non(a'en, &e #)"e, !n a0, a"ee!n &a !# !a+!! o &e
0"ed!o" #&a +e d!"e0, 9!&o) +ene o e&a)#!on o &e de+o"# "oe"!e#, and o
"e'a!n %a!d and 0on!n)o)# )n! &e )a"aneed o+!a!on !# ) #a!#ed. In #&o",aean #e0)"ed o &e 0"ed!o" no H)# &e a'en + &e de+o"("!n0!a o &!#
a00o)n#, +) &e a'en !#e o #)0& a00o)n#. Cea", a 0on"a0 o #)"e#&!
9a# &)# 0"eaed, &e aean +e0o'!n &e !n#)"e", no 'e"e o &e de+o"#
#o%en0 o" a+!! o a, +) o &e de+ !#e. Unde" &e C!%! Code, 9!& &e
de+o"# !n#o%en0 &a%!n +een H)d!0!a "e0on!/ed, &e"e!n aean# "e#o" o &e
0o)"# o +e "eea#ed "o' &e )nde"a>!n &)# a##)'ed 9o)d &a%e +een
a"o"!ae. 7 Ne%e"&ee##, &e )a"ano"# a0!on o" "eea#e 0an on +e ee"0!#ed
aa!n# &e "!n0!a de+o" and no aa!n# &e 0"ed!o", a# !# aa"en "o' &e
"e0!#e e"'# o &e ea "o%!#!on. T&e )a"ano" @#a# A"!0e 671 o &e C!%!
Code o &e P&!!!ne# e%en +eo"e &a%!n a!d, 'a "o0eed aa!n# &e "!n0!ade+o" (((((((((((((((((( o o+a!n a "eea#e "o' &e )a"an (((((((((((((((. T&e H)"!d!0a
")e "an# no 0a)#e o a0!on aa!n# &e 0"ed!o" o" a "eea#e o &e )a"an, +eo"e
-
8/20/2019 Credit Cases Surety and Garantor
42/146
a'en o &e 0"ed!, o" a a!n "ea#on$ &e 0"ed!o" !# no 0o'ea+e o "eea#e &e
)a"an @9&!0& !# a "oe" "!& aa!n# &!# 9!. Fo", &e "eea#e o &e )a"ano"
!'o"# an e!n0!on o &!# o+!a!on o &e 0"ed!o" ! 0onnoe#, &e"eo"e, e!&e" a
"e'!##!on o" a no%a!on + #)+"oa!on, and e!&e" oe"a!on "e)!"e# &e 0"ed!o"#
a##en o" !# %a!d! @See A"!0e 176 and A"!0e 1?61. E#e0!a #&o)d &!# +e &e
0a#e 9&e"e &e "!n0!a de+o" &a# +e0o'e !n#o%en, o" &e )"o#e o a )a"an !#
ea0 o "oe0 &e 0"ed!o" aa!n# #)0& a 0on!nen0.
In 9&a 'anne", &en, 0an &e a"!0e oe"aeX &e"e &e de+o" 0an no 'a>e )
a'en, &e "eea#e o &e )a"ano" 0an on +e o+a!ned 9!& &e a##en o &e
0"ed!o", + e"#)ad!n &e ae" o a00e an e)a #ae #e0)"!, e!&e" ano&e"
#)!a+e )a"an o" e#e a ede o" 'o"ae. A+#en &e 0"ed!o"# 0on#en, &e
"!n0!a de+o" 'a on "o0eed o "oe0 &e de'and!n )a"ano" + a
0o)ne"+ond o" 0o)ne" )a"an, a# !# a)&o"!/ed + &e 0oda "e0e @A"!0e 671
!n ne. To &!# eMe0 !# &e o!n!on o &e San!#& 0o''enao", S0ae%oa, !n &!#
eana!on# o A"!0e 184? o &e San!#& C!%! Code @"o' 9&!0& A"!0e 671 o o)"
Code !# de"!%ed. Sa# S0ae%oa$
Co'o #e "e#a"an ae# a"an!a# a ado"X Lo 0one#a e a)d!do a""ao na de
A"!0)o 184?. Se &a"a o" )no de e#o# do# 'odo#$ o"a 0on#!)!endo e de)do" )e e
a0"eedo" a+andone !+"e'ene a)ea an/a, o 0)a o0)""!"a dandoe e de)do" o"a
a"an!a anaoa, a o" "a/on de a e"#ona ado"a, a o"e0!endoe e de)do" a
'!#'o ado", e"o 0on!n)ando e#e 0o'o a, )na a"an!a )e o ona a 0)+!e"o
de o# "o0ed!'!eno# de a0"eedo" de e!"o de !n#o%en0!a de de)do". @S0ae%oaCod!o C!%!, d Ed., Vo. 8, . 515.
T&e aean# "o)+e# a"e 0o'o)nded + &e a0 &a 9&en &e 0o'a!n o"
"eea#e "o' #)"e#&! 9a# ed !n &e =an!a 0o)" on 16 See'+e" 15, &e
!n#o%en0 0a#e !n &e La)na 0o)" 9a# a"ead end!n and &e de+o"("!n0!a
Gene"o#o E#)!o &ad +een H)d!0!a de0a"ed an !n#o%en. 2 &e !'e &e aean
#)ed, &e"eo"e, &e !n#o%en0 0o)" &ad a"ead a0)!"ed H)"!#d!0!on o%e" a &e
de+o"# "oe"!e# and o a 0a!'# + and aa!n# &!', o &e e0)#!on o an o&e"
0o)". 8 In &e 0!"0)'#an0e#, &e a9) "e0o)"#e o &e )a"ano" o an o+!a!on o&e !n#o%en 9o)d +e o e a 0on!nen 0a!' !n &e !n#o%en0 "o0eed!n, ! &!#
"!&# a# #)0& )a"ano" o" #)"e a"e no o +e +a""ed + &e #)+#e)en d!#0&a"e o
&e !n#o%en de+o" "o' a &!# !a+!!!e#.
In &e 0a#e a +a", ! !# ")e &a &e )a"aneed 0a!' o NA=ARCO 9a# "e!#e"ed o"
ed !n &e !n#o%en0 "o0eed!n. 2) aean 0an no )!!/e &!# a0 !n #)o" o
!# e!!on o" "eea#e "o' &e a##)'ed )nde"a>!n. Fo" one &!n, ! !# a'o# a
0e"a!n &a 0"ed!o" NA=ARCO 0an no #e0)"e ) #a!#a0!on o !# 0"ed! o) o &e
de+o"# "oe"!e# +"o)& !no &e !n#o%en0 "o0eed!n. Con#!de"!n &a )nde" &e0on"a0 o #)"e#&!, 9&!0& "e'a!n# %a!d and #)+#!#!n, &e en!"e o+!a!on 'a
e%en +e de'anded d!"e0 aa!n# &e #)"e !#e, &e 0"ed!o"# a0 !n "e#o"!n "#
-
8/20/2019 Credit Cases Surety and Garantor
43/146
o &e "oe"!e# o &e !n#o%en de+o" !# o &e #)"e# ad%anae A ea#, &e
ae" 9o)d +e an#9e"a+e on o" 9&ae%e" a'o)n 'a "e'a!n no 0o%e"ed o"
)n#a!#ed + &e d!#o#!!on o &e !n#o%en# "oe"!e#, 1 6 9!& &e "!& o o
aa!n# de+o"("!n0!a ae" ! &a# 'ade &e ne0e##a" a'en o &e 0"ed!o". Fo"
ano&e", &e a0 &a &e de+o"( "!n0!a 'a +e d!#0&a"ed "o' a &!# o)#and!n
o+!a!on# !n &e !n#o%en0 0a#e 9o)d no +ene &e #)"e, a# o "e!e%e ! o !#
!a+!! )nde" &e #)"e a"ee'en. T&a !# #o "o%!ded !n Se0!on 8 o &eIn#o%en0 A0 9&!0& #&a +e 0on"o!n !n &e 0a#e.
F!na, e%en #)o#!n &a &e "e#en a0!on !# no +o0>ed + &e !n#o%en0
"o0eed!n# +e0a)#e ! doe# no a!' a "ed)0!n &e !n#o%en# a##e#, +) on a
&a%!n &e #)"e#&! #)+#!)ed + o&e" e)!%aen #e0)"!, #! ! !# d!!n )nde" &e +ond#, &e de0!#!on aeaed "o' !# a
-
8/20/2019 Credit Cases Surety and Garantor
44/146
O. Re#onden A##o0!aed In#)"an0e Q S)"e
Co., In0. @&e"e!nae" "ee""ed o a# A##o0!aed a0ed a# #)"e o Sa. =a"!a, !n
#)"e +ond# !n a%o" o &e +an> o an#9e" o" "o' "ea'en o &e oan#.
Pe!!one" Anon!o R. 2an/on and E'!!o =a. Na%a !n )"n a0ed a# !nde'n!o"# o
A##o0!aed and 9e"e o+!aed o !nde'n! and &od &a"'e## A##o0!aed "o' an
!a+!! &)# a0!n a# #)"e o &e oan. Sa. =a"!a a!ed o a &!# o+!a!on# o &e
+an>, 9&!0& a00o"d!n de'anded a'en "o' A##o0!aed a# #)"e.
In#ead o a!n &e +an>, A##o0!aed ed a 0o'a!n daed No%e'+e" 1, 15
9!& &e Co)" o F!"# In#an0e o =an!a 1 aa!n# de+o" Sa. =a"!a and !nde'n!o"#
2an/on and Na%a, ae!n &a &e o)#and!n o+!a!on# o Sa. =a"!a 9!& &e
+an> )a"aneed + ! a'o)ned o P,166.66, P,?4.44 and P14,811.?, o" a oa o
P?6,57.8, e0)d!n !ne"e#. On De0e'+e" 11, 157, &e #a!d 0o)" "ende"ed
H)d'en o"de"!n Sa. =a"!a, 2an/on and Na%a o a Ho!n and #e%e"a )no
a!n!M o" &e +ene o &e P&!!!ne Na!ona 2an> &e a'o)n# 'en!oned a+o%e,
9!& !ne"e# &e"eon a 1K e" ann)', P5?.7 o" "e'!)'# and do0)'ena"
#a'# d)e, and 15K ao"ne# ee#, &e 15K and &e !ne"e# o +e a!d o" &e
+ene on o &e a!n!M.
&a &aened &e"eae" !# na""aed !n &e de0!#!on o &!# Co)" "ende"ed on
No%e'+e" , 18 !n &e aea !n#!)ed + e!!one" 2an/on and &!# #o)#e, 0o(
e!!one" Ro#a 2a'a0eda, "o' a #)+#e)en a0!on o A##o0!aed !n &e Co)" o
F!"# In#an0e o R!/a 9&e"e!n &e R!/a 0o)" o"de"ed 2an/on o #)""ende" o"
0an0ea!on &!# o9ne"# d)!0ae# o !e# o &!# 9o Caoo0an C! o# 9&!0& &ad+een e%!ed )on and )"0&a#ed a &e ee0)!on #ae + A##o0!aed !n #)o#ed
#a!#a0!on o &e =an!a 0o)"# H)d'en, do0>eed a# Ca#e L(?71 o &!# Co)",
-
8/20/2019 Credit Cases Surety and Garantor
45/146
en!ed A##o0!aed In#. Q S)"e Co. In0. a!n!M(aeee %#. Anon!o 2an/on and
Ro#a 2a'a0eda, deendan#(aean#, a# oo9#$
A# &e a+o%e de0!#!on ? +e0a'e na and ee0)o", &e 0o""e#ond!n 9"! o
ee0)!on 9a# !##)ed and e% 9a# 'ade )on &e "oe"!e# o &e H)d'en de+o"
Anon!o R. 2an/on 0o%e"ed + T"an#e" Ce"!0ae# o T!e No#. ?85 and 5?75
!##)ed !n &!# na'e + &e Re!#e" o Deed# o R!/a. T&e "# 0o%e"ed a a"0e o and
0ona!n!n an a"ea o 56 #)a"e 'ee"# #!)aed !n 2a""!o Caaanan, Caoo0an, R!/a,
and &e #e0ond, ano&e" a"0e o 56 #)a"e 'ee"# #!)aed !n &e #a'e +a""!o o
&e #a'e ')n!0!a!. Ae" &e "o0eed!n# "e)!"ed + a9 !n 0onne0!on 9!&
ee0)!on #ae#, &e ao"e#a!d "oe"!e# 9e"e #od, &e H)d'en 0"ed!o", A##o0!aed
In#)"an0e and S)"e Co., In0., &a%!n +een &e &!&e# +!dde", o" &e oa #)' o
P41,666.66. T&e S&e"!M o R!/a !##)ed !n !# a%o" &e 0o""e#ond!n 0e"!0ae o #ae
daed J)ne 7, 157, 9&!0& 9a# d) "e!#e"ed on J)ne ?6, 15. A# &e e"!od o
"ede'!on e!"ed on J)ne 6, 16 9!&o) &e H)d'en de+o" o" an "oe" a"
&a%!n ee"0!#ed !, &e H)d'en 0"ed!o" and )"0&a#e" o+a!ned !n d)e !'e &e
0o""e#ond!n na 0e"!0ae o #ae, 9&!0& 9a# !>e9!#e d) "e!#e"ed.
In %!e9 o &e o"eo!n, &e"e!n e!!one"(aeee 'ade de'and# )on Anon!o R.
2an/on o de!%e" o ! &e o9ne"# d)!0ae o Ce"!0ae o T!e No#. ?85 and
5?75 'en!oned &e"eoo"e, +) &e ae" "e)#ed o do #o. A# a "e#) ! ed !n &e
Co)" o F!"# In#an0e o R!/a !n