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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)
 

 
Chan Robles Virtual Law Library
 
 

 
UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
March-2001 Jurisprudence                 

  • A.M. No. MTJ-00-1279 March 1, 2001 - ALICIA GONZALES-DECANO v. ORLANDO ANA F. SIAPNO

  • A.M. No. MTJ-00-1282 March 1, 2001 - SOFRONIO DAYOT v. RODOLFO B. GARCIA

  • G.R. No. 112092 March 1, 2001 - PEOPLE OF THE PHIL. v. ROBERT NUÑEZ

  • G.R. No. 123069 March 1, 2001 - PEOPLE OF THE PHIL. v. PEDRO SASPA, ET AL.

  • G.R. No. 126019 March 1, 2001 - PEOPLE OF THE PHIL. v. MARIO CALDONA

  • G.R. No. 131637 March 1, 2001 - PEOPLE OF THE PHIL. v. RODELIO PERALTA

  • G.R. No. 133888 March 1, 2001 - PEOPLE OF THE PHIL. v. ALFREDO NARDO

  • G.R. No. 134330 March 1, 2001 - ENRIQUE M. BELO, ET AL. v. PHIL. NATIONAL BANK, ET AL.

  • G.R. Nos. 135667-70 March 1, 2001 - PEOPLE OF THE PHIL. v. JESSIE VENTURA COLLADO

  • G.R. No. 138666 March 1, 2001 - ISABELO LORENZANA v. PEOPLE OF THE PHIL.

  • G.R. No. 140511 March 1, 2001 - PEOPLE OF THE PHIL. v. BALTAZAR AMION

  • G.R. No. 142313 March 1, 2001 - MANUEL CHU, SR., ET AL. v. BENELDA ESTATE DEV’T. CORP.

  • G.R. No. 142527 March 1, 2001 - ARSENIO ALVAREZ v. COMELEC, ET AL.

  • G.R. No. 144678 March 1, 2001 - JAVIER E. ZACATE v. COMELEC, ET AL.

  • G.R. Nos. 146710-15 & 146738 March 2, 2001 - JOSEPH E. ESTRADA v. ANIANO DESIERTO, ET AL.

  • G.R. No. 113236 March 5, 2001 - FIRESTONE TIRE & RUBBER COMPANY OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 113265 March 5, 2001 - PEOPLE OF THE PHIL. v. MANUEL PEREZ

  • G.R. No. 118680 March 5, 2001 - MARIA ELENA RODRIGUEZ PEDROSA v. COURT OF APPEALS, ET AL.

  • G.R. No. 123788 March 5, 2001 - DOMINADOR DE GUZMAN v. COURT OF APPEALS, ET AL.

  • G.R. No. 124686 March 5, 2001 - PEOPLE OF THE PHIL. v. ROQUE ELLADO

  • G.R. No. 127158 March 5, 2001 - PEOPLE OF THE PHIL. v. JULIO HERIDA, ET AL.

  • G.R. No. 132353 March 5, 2001 - PEOPLE OF THE PHIL. v. ALFREDO IBO

  • G.R. No. 126557 March 6, 2001 - RAMON ALBERT v. CELSO D. GANGAN

  • G.R. No. 138646 March 6, 2001 - PEOPLE OF THE PHIL. v. JOMER CABANSAY

  • G.R. No. 139518 March 6, 2001 - EVANGELINE L. PUZON v. STA. LUCIA REALTY AND DEVELOPMENT

  • G.R. Nos. 140249 & 140363 March 6, 2001 - DANILO S. YAP v. COURT OF APPEALS, ET AL.

  • G.R. No. 140884 March 6, 2001 - GELACIO P. GEMENTIZA v. COMELEC, ET AL.

  • G.R. No. 143823 March 6, 2001 - JENNIFER ABRAHAM v. NLRC, ET AL.

  • G.R. No. 126168 March 7, 2001 - PEOPLE OF THE PHIL. v. ANTONIO SAMUDIO

  • G.R. No. 129594 March 7, 2001 - PEOPLE OF THE PHIL. v. JUNNIFER LAURENTE

  • G.R. No. 135945 March 7, 2001 - UNITED RESIDENTS OF DOMINICAN HILL v. COMM. ON THE SETTLEMENT OF LAND PROBLEMS

  • G.R. No. 136173 March 7, 2001 - PEOPLE OF THE PHIL. v. ERNESTO ICALLA

  • G.R. Nos. 137481-83 & 138455 March 7, 2001 - PEOPLE OF THE PHIL. v. CONRADO SALADINO

  • G.R. Nos. 139962-66 March 7, 2001 - PEOPLE OF THE PHIL. v. EUGENIO MANGOMPIT

  • A.M. No. MTJ-00-1297 March 7, 2001 - JOSEFINA BANGCO v. RODOLFO S. GATDULA

  • A.M. No. MTJ-00-1329 March 8, 2001 - HERMINIA BORJA-MANZANO v. ROQUE R SANCHEZ

  • G.R. No. 122611 March 8, 2001 - NAPOLEON H. GONZALES v. COURT OF APPEALS, ET AL.

  • G.R. No. 125901 March 8, 2001 - EDGARDO A. TIJING, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 130378 March 8, 2001 - PEOPLE OF THE PHIL. v. ARNEL MATARO, ET AL.

  • G.R. No. 134279 March 8, 2001 - PEOPLE OF THE PHIL. v. RICKY ROGER AUSTRIA

  • G.R. Nos. 135234-38 March 8, 2001 - PEOPLE OF THE PHIL. v. ALEJANDRO GUNTANG

  • G.R. No. 137649 March 8, 2001 - PEOPLE OF THE PHIL. v. RODOLFO VILLADARES

  • G.R. No. 138137 March 8, 2001 - PERLA S. ZULUETA v. ASIA BREWERY

  • G.R. No. 138774 March 8, 2001 - REGINA FRANCISCO, ET AL v. AIDA FRANCISCO-ALFONSO

  • G.R. No. 140479 March 8, 2001 - ROSENCOR DEVELOPMENT CORPORATION, ET AL. v. PATERNO INQUING, ET AL.

  • G.R. No. 140713 March 8, 2001 - ROSA YAP PARAS, ET AL. v. ISMAEL O. BALDADO

  • G.R. No. 112115 March 9, 2001 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 140619-24 March 9, 2001 - BENEDICTO E. KUIZON, ET AL. v. ANIANO A. DESIERTO

  • G.R. No. 126099 March 12, 2001 - ROBERTO MITO v. COURT OF APPEALS, ET AL.

  • G.R. No. 128372 March 12, 2001 - PEOPLE OF THE PHIL. v. REMEGIO DELA PEÑA

  • G.R. Nos. 130634-35 March 12, 2001 - PEOPLE OF THE PHIL. v. MANOLITO OYANIB

  • G.R. No. 131889 March 12, 2001 - VIRGINIA O. GOCHAN, ET AL. v. RICHARD G. YOUNG, ET AL.

  • G.R. No. 136738 March 12, 2001 - PEOPLE OF THE PHIL. v. EFREN VALEZ

  • G.R. No. 137306 March 12, 2001 - VIRGINIA AVISADO, ET AL. v. AMOR RUMBAUA, ET AL.

  • G.R. Nos. 140011-16 March 12, 2001 - PEOPLE OF THE PHIL. v. EUSTAQUIO MORATA

  • A.M. No. P-01-1464 March 13, 2001 - SALVADOR O. BOOC v. MALAYO B. BANTUAS

  • G.R. No. 103073 March 13, 2001 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 131530 March 13, 2001 - Y REALTY CORP. v. SANDIGANBAYAN, ET AL.

  • G.R. No. 136594 March 13, 2001 - PEOPLE OF THE PHIL. v. JOEL CANIEZO

  • G.R. No. 139405 March 13, 2001 - PEOPLE OF THE PHIL. v. ARTURO F. PACIFICADOR

  • A.M. No. RTJ-00-1530 March 14, 2001 - EDGARDO ALDAY, ET AL. v. ESCOLASTICO U. CRUZ

  • G.R. Nos. 116001 & 123943 March 14, 2001 - PEOPLE OF THE PHIL. v. LUISITO GO

  • G.R. No. 130209 March 14, 2001 - PEOPLE OF THE PHIL. v. LARRY LAVAPIE, ET AL.

  • G.R. Nos. 130515 & 147090 March 14, 2001 - PEOPLE OF THE PHIL. v. ANSELMO BARING

  • G.R. Nos. 134451-52 March 14, 2001 - PEOPLE OF THE PHIL. v. REYNALDO FRETA

  • G.R. No. 137036 March 14, 2001 - PEOPLE OF THE PHIL. v. HERNANDO DE MESA, ET AL.

  • G.R. No. 138045 March 14, 2001 - PEOPLE OF THE PHIL. v. MARIETTA PATUNGAN, ET AL.

  • G.R. No. 139300 March 14, 2001 - AMIGO MANUFACTURING v. CLUETT PEABODY CO.

  • G.R. No. 102985 March 15, 2001 - RUBEN BRAGA CURAZA v. NLRC, ET AL.

  • G.R. No. 133480 March 15, 2001 - PEOPLE OF THE PHIL. v. FLORANTE AGUILUZ

  • G.R. Nos. 135201-02 March 15, 2001 - PEOPLE OF THE PHIL. v. FLORENCIO FRANCISCO

  • G.R. No. 141616 March 15, 2001 - CITY OF QUEZON v. LEXBER INCORPORATED

  • G.R. No. 116847 March 16, 2001 - MANUFACTURERS BUILDING v. COURT OF APPEALS, ET AL.

  • G.R. No. 128083 March 16, 2001 - PEOPLE OF THE PHIL. v. RODOLFO M. HILARIO

  • G.R. No. 128922 March 16, 2001 - ELEUTERIA B. ALIABO, ET AL. v. ROGELIO L. CARAMPATAN, ET AL.

  • G.R. No. 129070 March 16, 2001 - PEOPLE OF THE PHIL. v. NELLIE CABAIS

  • G.R. No. 131544 March 16, 2001 - EPG CONSTRUCTION CO., ET AL. v. GREGORIO R. VIGILAR

  • G.R. No. 135047 March 16, 2001 - PEOPLE OF THE PHIL. v. RICARDO CACHOLA, ET AL.

  • G.R. No. 137282 March 16, 2001 - PEOPLE OF THE PHIL. v. ALFREDO ALIPAR

  • G.R. Nos. 137753-56 March 16, 2001 - PEOPLE OF THE PHIL v. NILO ARDON

  • A.M. No. 01-1463 March 20, 2001 - EVELYN ACUÑA v. RODOLFO A. ALCANTARA

  • A.M. No. MTJ-00-1306 March 20, 2001 - ROBERT M. VISBAL v. RODOLFO C. RAMOS

  • A.M. No. P-97-1241 March 20, 2001 - DINNA CASTILLO v. ZENAIDA C. BUENCILLO

  • G.R. Nos. 105965-70 March 20, 2001 - GEORGE UY v. SANDIGANBAYAN, ET AL

  • G.R. No. 108991 March 20, 2001 - WILLIAM ALAIN MIAILHE v. COURT OF APPEALS, ET AL.

  • G.R. No. 130663 March 20, 2001 - PEOPLE OF THE PHIL v. ANGELES STA. TERESA

  • G.R. Nos. 136862-63 March 20, 2001 - PEOPLE OF THE PHIL. v. ROLANDO SANTOS

  • G.R. Nos. 139413-15 March 20, 2001 - PEOPLE OF THE PHIL. v. ENDRICO GALAS

  • G.R. No. 140356 March 20, 2001 - DOLORES FAJARDO v. COURT OF APPEALS, ET AL.

  • G.R. No. 140919 March 20, 2001 - PEOPLE OF THE PHIL. v. BUTCH BUCAO LEE

  • G.R. No. 142476 March 20, 2001 - REPUBLIC OF THE PHIL. v. SANDIGANBAYAN

  • G.R. No. 144074 March 20, 2001 - MEDINA INVESTIGATION & SECURITY CORP., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 127772 March 22, 2001 - ROBERTO P. ALMARIO v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 133815-17 March 22, 2001 - PEOPLE OF THE PHIL. v. EDGARDO LIAD, ET AL.

  • G.R. No. 134972 March 22, 2001 - ERNESTO CATUNGAL, ET AL. v. DORIS HAO

  • A.M. No. P-01-1469 March 26, 2001 - ROEL O. PARAS v. MYRNA F. LOFRANCO

  • A.M. No. RTJ-01-1624 March 26, 2001 - REQUEST FOR ASSISTANCE RELATIVE TO SPECIAL PROCEEDINGS NO. 28

  • A.M. No. 99-731-RTJ March 26, 2001 - HILARIO DE GUZMAN v. DEODORO J. SISON

  • G.R. Nos. 102407-08 March 26, 2001 - PEOPLE OF THE PHIL. v. EDMUNDO LUCERO

  • G.R. No. 121608 March 26, 2001 - FLEISCHER COMPANY v. NLRC, ET AL.

  • G.R. No. 121902 March 26, 2001 - PEOPLE OF THE PHIL. v. WALTER MELENCION

  • G.R. No. 125865 March 26, 2001 - JEFFREY LIANG v. PEOPLE OF THE PHIL.

  • G.R. No. 129916 March 26, 2001 - MAGELLAN CAPITAL MNGT. CORP., ET AL. v. ROLANDO M. ZOSA, ET AL.

  • G.R. Nos. 131638-39 March 26, 2001 - PEOPLE OF THE PHIL. v. LORETO MEDENILLA

  • G.R. No. 131653 March 26, 2001 - ROBERTO GONZALES v. NLRC, ET AL

  • G.R. No. 133475 March 26, 2001 - PEOPLE OF THE PHIL. v. ERNESTO MONTEJO

  • G.R. No. 134903 March 26, 2001 - UNICRAFT INDUSTRIES INTERNATIONAL CORP., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 136790 March 26, 2001 - PEOPLE OF THE PHIL. v. MANUEL GALVEZ

  • G.R. No. 137268 March 26, 2001 - PEOPLE OF THE PHIL. v. EUTIQUIA CARMEN, ET AL.

  • G.R. No. 137590 March 26, 2001 - FLORENCE MALCAMPO-SIN v. PHILIPP T. SIN

  • G.R. No. 137739 March 26, 2001 - ROBERTO B. TAN v. PHIL. BANKING CORP., ET AL.

  • G.R. No. 137889 March 26, 2001 - PEOPLE OF THE PHIL. v. ROMEO DELOS SANTOS

  • G.R. No. 142950 March 26, 2001 - EQUITABLE PCI BANK v. ROSITA KU

  • G.R. Nos. 147066 & 147179 March 26, 2001 - AKBAYAN - Youth, ET AL. v. COMELEC, ET AL.

  • A.M. No. 00-7-09-CA March 27, 2001 - IN RE: DEMETRIO G. DEMETRIA

  • A.M. No. P-01-1473 March 27, 2001 - GLORIA O. BENITEZ v. MEDEL P. ACOSTA

  • G.R. No. 123149 March 27, 2001 - PEOPLE OF THE PHIL. v. CORNELIO CABUG

  • G.R. No. 131588 March 27, 2001 - PEOPLE OF THE PHIL. v. GLENN DE LOS SANTOS

  • G.R. Nos. 137762-65 March 27, 2001 - PEOPLE OF THE PHIL. v. REYNALDO BARES

  • G.R. No. 137989 March 27, 2001 - PEOPLE OF THE PHIL. v. SONNY MATIONG, ET AL.

  • A.M. No. MTJ-01-1357 March 28, 2001 - MONFORT HERMANOS AGRICULTURAL DEVELOPMENT CORP. v. ROLANDO V. RAMIREZ

  • A.M. No. RTJ-00-1574 March 28, 2001 - GORGONIO S. NOVA v. SANCHO DAMES II

  • G.R. No. 100701 March 28, 2001 - PRODUCERS BANK OF THE PHIL. v. NLRC, ET AL.

  • G.R. No. 101442 March 28, 2001 - JOSE ANGELES v. COURT OF APPEALS, ET AL

  • G.R. No. 110012 March 28, 2001 - ANASTACIO VICTORIO v. COURT OF APPEALS, ET AL.

  • G.R. No. 112314 March 28, 2001 - VICENTE R. MADARANG v. SANDIGANBAYAN, ET AL.

  • G.R. No. 117964 March 28, 2001 - PLACIDO O. URBANES, JR. v. COURT OF APPEALS, ET AL.

  • G.R. No. 122216 March 28, 2001 - ALJEM’S CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 126751 March 28, 2001 - SAFIC ALCAN & CIE v. IMPERIAL VEGETABLE OIL CO.

  • G.R. No. 126959 March 28, 2001 - PEOPLE OF THE PHIL. v. SERVANDO SATURNO, ET AL.

  • G.R. No. 136965 March 28, 2001 - UNIVERSITY OF THE PHIL. v. SEGUNDINA ROSARIO

  • G.R. No. 137660 March 28, 2001 - PEOPLE OF THE PHIL. v. CARLOS L. ALCANTARA

  • G.R. No. 137932 March 28, 2001 - CHIANG YIA MIN v. COURT OF APPEALS, ET AL.

  • G.R. No. 138474 March 28, 2001 - PEOPLE OF THE PHIL. v. FORTUNATO BALANO

  • G.R. Nos. 139571-72 March 28, 2001 - ROGER N. ABARDO v. SANDIGANBAYAN

  • G.R. No. 140153 March 28, 2001 - ANTONIO DOCENA, ET AL. v. RICARDO P. LAPESURA, ET AL.

  • G.R. No. 141307 March 28, 2001 - PURTO J. NAVARRO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 142007 March 28, 2001 - MANUEL C. FELIX v. ENERTECH SYSTEMS INDUSTRIES, ET AL.

  • G.R. No. 143173 March 28, 2001 - PEDRO ONG, ET AL. v. SOCORRO PAREL, ET AL.

  • G.R. No. 144169 March 28, 2001 - KHE HONG CHENG v. COURT OF APPEALS, ET AL.

  • G.R. No. 131836 March 30, 2001 - PEOPLE OF THE PHIL. v. MELITA SINCO, ET AL.

  • G.R. No. 137564 March 30, 2001 - PEOPLE OF THE PHIL. v. DOMINADOR DOMENDED

  • G.R. No. 137648 March 30, 2001 - PEOPLE OF THE PHIL. v. IRENEO PADILLA

  • G.R. No. 140311 March 30, 2001 - DENNIS T. GABIONZA v. COURT OF APPEALS, ET AL

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    G.R. No. 103073   March 13, 2001 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 103073. March 13, 2001.]

    REPUBLIC OF THE PHILIPPINES, represented by the Bureau of Customs, Petitioner, v. THE HONORABLE COURT OF APPEALS and R & B SURETY AND INSURANCE COMPANY, INC., Respondents.

    R E S O L U T I O N


    VITUG, J.:


    Submitted for resolution is a motion for reconsideration of the decision, dated 14 September 1999, of the Court. Respondent-movant R & B Surety and Insurance, Inc. ("R & B"), contends that —

    "I


    "THE SUSPENSION OF ENDELO’S LICENSE TO OPERATE RENDERED THE OBLIGATION TO RE-EXPORT IMPOSSIBLE OF PERFORMANCE AND/OR EQUIVALENT TO CANCELLATION OR REVOCATION OF SAID LICENSE, THEREBY DISCHARGING THE SURETY FROM ITS OBLIGATION.chanrob1es virtua1 1aw 1ibrary

    "II


    "ASSUMING ARGUENDO THAT R & B SURETY IS LIABLE, IT IS NOT SOLIDARILY LIABLE WITH THE OTHER SURETY, COMMUNICATIONS INSURANCE COMPANY, INC. (CICI) AS ERRONEOUSLY HELD BY THE RTC.

    "III


    "IN BOND NUMBERS 0064 AND 0073, R & B SURETY WAS ERRONEOUSLY CHARGED FOR MORE THAN THE FACE VALUE OF THE BOND WHILE IN BOND NUMBER 0067, R & B SURETY WAS MISTAKENLY CHARGED TWICE IN PALPABLE VIOLATION OF SECTION 176 OF THE INSURANCE CODE LIMITING THE SURETY’S LIABILITY TO THE AMOUNT OF THE BOND." 1

    Additionally, respondent argues that it should not be held liable for the payment of legal interest which would increase its liability beyond the amount of the bond.

    The Court, in its resolution of 15 November 1999, required the Solicitor General to comment on the motion for reconsideration. In his concluding statement, the Solicitor General stated:jgc:chanrobles.com.ph

    "WHEREFORE, except for its plea for modification of this Honorable Court’s Decision on the amount of its liability, it is respectfully prayed that private respondent’s Motion for Reconsideration be denied for lack of merit." 2

    Relative to the first ground invoked by movant, suffice it to state that was not clearly shown that the suspension of Endelo’s license had rendered it impossible for Endelo to re-export the articles in question, or that such a suspension had amounted to a cancellation or revocation of its license that could thereby justify a discharge of respondent R & B from its liability. The matter was sufficiently discussed in the Courts decision —

    "Admittedly, Endelo’s license to operate was suspended sometime in 1970, a fact clearly gleanable from the allegations of Endelo in its Answer to the Complaint, claiming that its failure to export the imported raw materials in its original state or as finished products was due to the suspension of its license to operate allegedly done illegally and unnecessarily by the Board. Such allegation of illegal and unnecessary suspension was, however, not backed by any supporting evidence. Neither is there sufficient proof that the suspension of Endelo’s license was made during the two-year period. Much less has it been shown that such suspension prevented it from complying with its obligations under the bonds.chanrob1es virtua1 1aw 1ibrary

    "Records show that the pilferage by Endelo and the subsequent investigation conducted thereon, which resulted in the suspension of its license in 1970, was admitted by Atty. Casareno under cross-examination on October 23, 1986. That the investigation report thereon could not be produced was adequately explained by Atty. Casareno who testified that the investigation report and records pertaining to such investigation have been condemned since the said documents were kept in the custody of the Bureau of Customs only for a period of five (5) years.

    "Having relied on the illegality of its suspension by way of defense, Endelo and not petitioner has the burden of proving the same. In addition, Endelo was duty-bound to prove whether or not the suspension of its license was for an indefinite period or merely for a limited time. Despite this well-established rule, the Court of Appeals shifted that burden to the petitioner, and without any sustainable basis, upheld the theory of Endelo that the suspension of its license was invalid. But no such implication can be drawn either from the failure of petitioner to show the propriety of the suspension order or from the mere non-production of the documents or records of the alleged investigation prior to the order of suspension. Further, absent convincing evidence to the contrary, the presumption of regularity in the performance of official functions has to be applied.chanrob1es virtua1 1aw 1ibrary

    "x       x       x

    ". . . What is more, Endelo was not without recourse insofar as its duty to comply with its obligation was concerned. Assuming for the sake of argument that the suspension in question was indeed illegal, records show no effort on the part of Endelo to have the said suspension lifted by the Embroidery and Apparel Control and Inspection Board. As aptly observed by petitioner, such omission has bolstered the submission that the suspension of Endelo’s license was proper and the alleged pilferage was the main cause therefor. Moreover, it does not appear that Endelo was precluded from exporting the imported materials subject of the controversy, in their original state, within two (2) years from the time they were deposited in the bonded warehouse of the Bureau of Customs." 3

    Movant next argues that R & B should not be held liable for more than the face value of the bonds. This argument indeed has its merit. Section 176 of the Insurance Code provides:jgc:chanrobles.com.ph

    "SECTION 176. The liability of the surety of sureties shall be joint and several with the obligor and shall be limited to the amount of the bond. It is determined strictly by the terms of the contract of suretyship in relation to the principal contract between the obligor and the obligee, (as amended by P.D. No. 1455)."cralaw virtua1aw library

    The face values of the bonds issued by respondent-movant are hereunder itemized, viz:chanrob1es virtual 1aw library

    R & B Bond Face Value of the Bond

    (1) 0064 dated 20 February 1970 P500,000.00

    (2) 0067 dated 18 March 1970 as

    increased by Bond

    Indorsement dated 29 April

    1970 1,000,000.00

    (3) 0067 dated 01 March 1970 as

    increased by Bond

    Indorsement dated 29 April

    1970 1,000,000.00

    (4) 0073 dated 10 April 1970 500,000.00

    ———————

    P3,000,000.00

    The trial court required respondent-movant R & B to pay petitioner the total amount of P4,305,017.00, representing taxes and duties due to it in the four causes of actions covering the four embroidery bonds, which was well above the total face value of the bonds in the sum of P3,000,000.00. R & B’s liability should instead be computed thusly:chanrob1es virtua1 1aw 1ibrary

    Duties and Amount Due

    Taxes Due (Legal Interest

    Petitioner R & B Bonds excluded)

    (1) P1,515,798.00 (0064) P500,000.00 P500,000.00

    (2) 662,961.00 (0067) 1,000,000.00 662,961.00

    (3) 1,200,651.00 (0073) 500,000.00 500,000.00

    (4) 925,607.00 (0067) 1,000,000.00 925,607.00

    —————— —————— ——————

    TOTAL P4,305,017.00 P3,000,000.00 P2,588,568.00

    plus "legal interest" on the amount due (P2,588,568.00) from the time of the filing of the complaint until fully paid. R & B’s claim that it should not be held liable to pay legal interest thereon cannot be sustained since the payment for legal interest is for the incurrence of default and the necessity of judicial collection. 4

    Respondent-movant opines that its liability should be pro-rated with that of CICI since R & B’s liability is solidary with that of Endelo and not with CICI. The contention is unacceptable considering that the joint and several liability of the surety (R & B) and the obligor (Endelo) gave petitioner the right to compel performance of the full obligation from both Endelo and R & B or from either of them. 5chanrob1es virtua1 1aw 1ibrary

    WHEREFORE, the motion for reconsideration is partially granted by modifying the decision of the Regional Trial Court, dated 13 February 1989, limiting the liability of respondent R & B Surety and Insurance, Inc., for duties and taxes due to petitioner only in the amount of P2,588,568.00 plus legal interest thereon, however, from the filing of the complaint until fully paid. The decision of this Court sought to be reconsidered is thusly modified.

    SO ORDERED.

    Melo, Panganiban, Gonzaga-Reyes and Sandoval-Gutierrez, JJ., concur.

    Endnotes:



    1. Rollo, pp. 247-248.

    2. Rollo, p. 283.

    3. Rollo, pp. 242-244.

    4. Smith Bell and Co., Inc. v. Court of Appeals, 267 SCRA 530; PNB v. Luzon Surety, 68 SCRA 206.

    5. Art. 1216. The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. The demand made against one of them shall not be an obstacle to those which may subsequently be directed against the others, so long as the debt has not been fully collected. (New Civil Code)

    G.R. No. 103073   March 13, 2001 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.




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