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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
April-1949 Jurisprudence                 

  • G.R. No. L-1749 April 2, 1949 - PEOPLE OF THE PHIL. v. LUCAS GEMPES

    083 Phil 267

  • G.R. No. L-1441 April 7, 1949 - PEOPLE OF THE PHIL. v. MIGUEL N. MORENO

    083 Phil 286

  • G.R. No. L-2179 April 12, 1949 - MANILA TRADING petitioner v. MANILA TRADING LABORERS’ ASSN.

    083 Phil 297

  • G.R. No. L-979 April 13, 1949 - COMMONWEALTH OF THE PHIL. v. FAR EASTERN SURETY

    083 Phil 305

  • G.R. No. L-2745 April 13, 1949 - FLAVIANO ROMERO v. POTENCIANO PECSON

    083 Phil 308

  • G.R. No. L-856 April 18, 1949 - PEOPLE OF THE PHIL. v. SUSANO PEREZ

    083 Phil 314

  • G.R. No. L-493 April 19, 1949 - SANTIAGO BANAAG v. VICENTE SINGSON ENCARNACION

    083 Phil 325

  • G.R. No. L-1545 April 19, 1949 - E. R. CRUZ v. RAFAEL DINGLASAN.

    083 Phil 333

  • G.R. No. 48671 April 19, 1949 - EUSEBIO BELVIZ v. CATALINO BUENAVENTURA

    083 Phil 337

  • G.R. No. L-364 April 25, 1949 - PEOPLE OF THE PHIL. v. MARIANO T. JAUCIAN

    083 Phil 340

  • G.R. No. L-1282 April 25, 1949 - JUAN S. BARROZO v. MARCELINO T. MACARAEG

    083 Phil 378

  • G.R. No. L-2525 April 26, 1949 - MARY BURKE DESBARATS v. TOMAS DE VERA

    083 Phil 382

  • G.R. No. 48676 April 26, 1949 - LEON ORACION v. PACITA JUANILLO

    083 Phil 397

  • G.R. No. L-793 April 27, 1949 - FELISA R. PAEZ v. FRANCISCO MAGNO

    083 Phil 403

  • G.R. No. L-1259 April 27, 1949 - IN RE: CRISANTO DE BORJA v. JULIANA DE BORJA

    083 Phil 405

  • G.R. No. L-1370 April 27, 1949 - BERNARDA DE VASQUEZ v. ALFONSO DIVA

    083 Phil 410

  • G.R. No. L-1399 April 27, 1949 - IN RE: GONZALO T. DAVID v. CARLOS M. SISON

    083 Phil 413

  • G.R. No. L-1590 April 27, 1949 - RAYMUNDA SIVA v. FELIXBERTO IMPERIAL REYES

    083 Phil 416

  • G.R. No. L-1627 April 27, 1949 - EL PUEBLO DE FILIPINAS v. MAMERTO RAMIREZ

    083 Phil 418

  • G.R. No. L-1976 April 27, 1949 - PEOPLE OF THE PHIL. v. ARULA

    083 Phil 425

  • G.R. No. L-2056 April 27, 1949 - SANTIAGO ALERIA v. JUAN MENDOZA

    083 Phil 427

  • G.R. No. L-2336 April 27, 1949 - ANGELINA CANAYNAY v. BIENVENIDO A. TAN

    083 Phil 429

  • CA. No. 2592-R April 27, 1949 - SATURNINA ZAPANTA v. VIRGILIO BARTOLOME

    083 Phil 433

  • G.R. No. L-2612 April 27, 1949 - RURAL PROGRESS ADMINISTRATION v. DOMINADOR TEMPOROSA

    083 Phil 438

  • G.R. No. L-855 April 28, 1949 - PEOPLE OF THE PHIL. v. TROADIO BUTAWAN

    083 Phil 440

  • G.R. No. L-1275 April 28, 1949 - EL PUEBLO DE FILIPINAS v. FULGENCIO BUSTILLOS.

    083 Phil 443

  • G.R. No. L-1661 April 28, 1949 - PEOPLE OF THE PHIL. v. TEODORO CANTOS

    083 Phil 446

  • G.R. No. L-1672 April 28, 1949 - IN RE: ZENAIDA JIRO-MORI

    083 Phil 450

  • G.R. No. L-2028 April 28, 1949 - PHIL. SHEET METAL WORKERS’ UNION v. COURT OF INDUSTRIAL RELATIONS

    083 Phil 453

  • CA. No. 332 April 29, 1949 - CHINA INSURANCE & SURETY COMPANY v. B. K. BERKENKOTTER

    083 Phil 459

  • G.R. No. L-1650 April 29, 1949 - PEOPLE OF THE PHIL. v. GORGONIO MACABUHAY

    083 Phil 464

  • G.R. No. L-2899 April 29, 1949 - NATIONAL COCONUT CORPORATION v. FRANCISCO GERONIMO

    083 Phil 467

  • G.R. No. L-150 April 30, 1949 - VICENTE HILADO v. FELIX DE LA COSTA

    083 Phil 471

  • G.R. No. L-1234 April 30, 1949 - VICTORINO FLORO v. SANTIAGO H. GRANADA

    083 Phil 487

  • G.R. No. L-1383 April 30, 1949 - PAZ ESCARELLA DE RALLA v. DIRECTOR OF LANDS

    083 Phil 491

  • G.R. No. L-1523 April 30, 1949 - BIÑAN TRANSPORTATION COMPANY v. FIDEL IBAÑEZ

    083 Phil 503

  • G.R. No. L-1783 April 30, 1949 - PEOPLE OF THE PHIL. v. DIONISIO CARPIO Y ESTACIO

    083 Phil 509

  • G.R. No. L-1916 April 30, 1949 - PABLO C. SIBULO v. LOPE ALTAR

    083 Phil 513

  • G.R. No. L-2009 April 30, 1949 - SUNRIPE COCONUT PRODUCTS CO. v. COURT OF INDUSTRIAL RELATIONS

    083 Phil 518

  • G.R. No. L-2122 April 30, 1949 - FAUSTINO BUTER v. TRIBUNAL DE RELACIONES INDUSTRIALES

    083 Phil 526

  • G.R. No. L-46798 April 30, 1949 - PINDANGAN AGRICULTURAL CO., INC. v. ERNEST A. SCHENKEL Y OTRO

    083 Phil 529

  • G.R. No. 49167 April 30, 1949 - CO TAO v. JOAQUIN CHAN CHICO

    083 Phil 543

  •  





     
     

    G.R. No. L-979   April 13, 1949 - COMMONWEALTH OF THE PHIL. v. FAR EASTERN SURETY<br /><br />083 Phil 305

     
    PHILIPPINE SUPREME COURT DECISIONS

    FIRST DIVISION

    [G.R. No. L-979. April 13, 1949.]

    THE COMMONWEALTH OF THE PHILIPPINES, Plaintiff-Appellee, v. THE FAR EASTERN SURETY & INSURANCE COMPANY, Defendant-Appellant.

    Leodegario D. Castillo for Appellant.

    Assistant Solicitor General Ruperto Kapunan, Jr. and Solicitor Jesus A. Avanceña for Appellee.

    SYLLABUS


    SURETYSHIP; SOLIDARY LIABILITY; APPLICATION OF PAYMENT. — "Where in a bond the debtor and surety have bound themselves solidarily, but limiting the liability of the surety to a lesser amount than that due from the principal debtor, any such payment as the latter may have made on account of such obligation must be applied first to the unsecured portion of the debt, for, as regards the principal debtor, the obligation is more onerous as to the amount not secured." (Hongkong & Shanghai Banking Corporation v. Aldanese, 48 Phil., 990.)


    D E C I S I O N


    BENGZON, J.:


    The Court of Appeals forwarded this case because the issues raised are questions of law. Appellant itself admits the substantial correctness of the findings of the trial judge as follows:jgc:chanrobles.com.ph

    "On August 20 and October 1, 1935, the Vda. de Tiu Seng and Tan Kiang, a sociedad en comandita, as principal and the Far Eastern Surety & Insurance Co., Inc., as surety executed two bonds (Exhibits A and A-1) by which they bound themselves jointly and severally to pay the government the sum of P10,000 which was the amount due from Tiu Seng (for the sake of brevity we shall use the name Tiu Seng for the Vda. de Tiu Seng and Tan Kiang) as internal revenue taxes and surcharge. These bonds were filed before the indebtedness was accurately ascertained. It was afterwards found by the Collector of Internal Revenue that the amount due from Tiu Seng was P30,512.64. Demand for payment of this amount was made, but without success. However, a compromise was effected on November 6, 1936, by which the tax due was reduced to P12,874.17. Tui Seng proposed to the Collector that said amount be paid on installments as follows: P2,874.17 on January 30, 1937, and the balance of P10,000 on monthly payments of P500 each, beginning February 17, 1937. Finally, it was agreed that the payment be made as follows: P2,874.17 on January 20, 1937 and the balance of P10,000 within a period of 10 months at the rate of P1,000 per month. Under this agreement, Tiu Seng has paid the Collector the total amount of P11,644.12 leaving a balance of P1,230.05, the amount which the plaintiff now seeks to recover from the defendant, the Far Eastern Surety & Insurance Co., Inc.

    "The issue in this case is whether said sum of P1,230.05 is covered by the two bonds above mentioned."cralaw virtua1aw library

    Within the framework of the above statement of facts attorney for appellant vigorously argues the proposition that it merely guaranteed the payment of P10,000 to the Commonwealth of the Philippines (now the Republic), without undertaking to pay any balance of the obligation of the principal debtor, and that after such sum had been fully satisfied, as in this case, it had no further liability. It is an admitted circumstance that Tin Seng had delivered, after the execution of the bonds, the total amount of P11,644.12 to the Bureau of Internal Revenue.

    It must be observed, however, at this juncture that the trial judge upheld the plaintiff’s contention that the amounts paid should be applied first to the unsecured portion of Tin Seng’s liability, thus leaving unpaid and covered by the bonds the sum of P1,230.05, which may legally be collected from defendant as a solidary surety.

    Appellant’s proposition, which is the crux of this appeal, would undoubtedly be unassailable had all the payments been made specifically on account of the debt secured by the bond. But although it is agreed that the payments were made on account of taxes there is no proof as to the imputation thereof. This point is decisive; for, in effect Tiu Seng had two liabilities to the Commonwealth: one for the sum not covered by the bonds and another for the sum secured thereby. Parenthetically it should be observed that under the law (article 1826, Civil Code) the obligation of the guarantor may be less than that of the principal.

    The problem is, consequently, one concerning the application of payments. And the rules to be invoked are:jgc:chanrobles.com.ph

    "A person owing several debts of the same kind to a single creditor may declare, at the time of making a payment, to which of them it is to be applied.

    "If the debtor should accept from the creditor a receipt which recites the application to be given the payment, he cannot contest it, unless there should be ground for treating the contract as void." (Article 1172, Civil Code.)

    "When the payment cannot be applied in accordance with the preceding rules, that which, among the matured debts, is the most burdensome to the debtor shall be deemed paid.

    "If such debts should be equally burdensome, the payment shall be applied to all of them pro rata." (Article 1174, Civil Code.)

    Manresa, commenting on article 1174, says that when a person has two debts, one as sole debtor and another as solidary co-debtor his more onerous obligation to which first payments are to be applied is the debt as sole debtor. (Cod. Civil, Vol. VIII, 4th Ed., p, 290). That view is exactly what this Court followed in Hongkong and Shanghai Banking Corporation v. Aldanese (48 Phil., 990) on which the trial judge relied correctly. No difference is perceivable between this litigation and the Aldanese case. In both the problem of application of payments is involved. This Court has held:jgc:chanrobles.com.ph

    "Where in a bond the debtor and surety have bound themselves solidarily, but limiting the liability of the surety to a lesser amount than that due from the principal debtor, any such payment as the latter may have made on account of such obligation must be applied first to the unsecured portion of the debt, for, as regards the principal debtor, the obligation is more onerous as to the amount not secured." (Hongkong & Shanghai Banking Corporation v. Aldanese, 48 Phil., 990.)

    No valid reason has been demonstrated to justify departure from the above ruling.

    Judgment affirmed, with costs, provided that the money shall be turned over by defendant-appellant to the Republic of the Philippines as the successor of the Commonwealth.

    Moran C. J., Paras, Feria, Pablo, Perfecto, Tuason, Montemayor and Reyes, JJ., concur.

    G.R. No. L-979   April 13, 1949 - COMMONWEALTH OF THE PHIL. v. FAR EASTERN SURETY<br /><br />083 Phil 305


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