G.R. No. 142565 - People vs. Soriano

On 19 August 1990, Autocorp Group, represented by its President Peter Y. Rodriguez, obtained Instrata Bond No. 5770 from Intra Strata Assurance Corporation (ISAC) in favor of the Bureau of Customs (BOC) in the amount of ₱327,040.00 to guarantee re-export or payment of duties on one Hyundai Excel.
On 21 December 1990, petitioners obtained Instrata Bond No. 7154 from ISAC in favor of the BOC in the amount of ₱447,671.00 (later increased to ₱707,609.00 by endorsement dated 10 January 1991) to guarantee re-export or payment of duties on one Hyundai Sonata.

Petitioners executed two identical Indemnity Agreements in favor of ISAC, binding themselves as sureties to “jointly and severally indemnify” ISAC against all losses, costs, attorney’s fees (25% of the amount in litigation or not less than ₱300), interest at 12% per annum, and related expenses upon ISAC’s liability under the bonds.
Key stipulations included:

Maturity and accrual of action even prior to ISAC’s actual payment or BOC’s formal forfeiture;
ISAC’s right to grant extensions, renewals, substitutions without additional indemnity;
Waiver of venue (Makati courts) and civil-code benefits (Arts. 2077–2081);
Primary liability of petitioners without the need to exhaust principal’s assets;
Severability of provisions and power of attorney among sureties.

Autocorp Group failed to re-export the vehicles or pay duties within the prescribed period; BOC deemed both bonds forfeited, total face value ₱1,034,649.00.
After extrajudicial demands to petitioners proved unavailing, ISAC filed Civil Case No. 95-1584 on 24 October 1995 against petitioners for ₱1,034,649.00 plus ₱258,662.25 attorney’s fees, impleading the BOC as a necessary plaintiff.

RTC Branch 150, Makati City: Denied petitioners’ Motion to Dismiss (27 February 1996); on 16 September 1998, rendered judgment for ISAC ordering petitioners to pay ₱1,034,649.00 plus ₱258,662.25 fees; denied motion for reconsideration (15 January 1999).
Court of Appeals: On 30 June 2004, affirmed RTC decision but reduced attorney’s fees award to ₱103,464.90; denied motion for reconsideration (5 January 2005).
Supreme Court: Petition for Review on Certiorari filed by petitioners, thereafter resolved in this decision.

Whether ISAC’s action was premature for lack of actual forfeiture or formal demand by BOC.
Whether the Court of Appeals misapprehended facts and evidence in affirming petitioners’ liability.
Whether BOC was improperly impleaded as a party, warranting dismissal or severance.
Whether petitioner Rodriguez was erroneously held jointly liable despite amendments allegedly made without his consent.