G.R. No. L-55225 - Heirs of Jardin vs. Heirs of Hallasgo

On March 26, 1997, Pyramid Construction Engineering Corporation (“Pyramid”) entered into a contract with Macrogen Realty Corporation, of which petitioner Benjamin Bitanga was President, to construct the Shoppers Gold Building in Parañaque City.
Pyramid commenced work by May 1997 but Macrogen failed to pay progress billings. Bitanga, through agents, assured Pyramid of payment, prompting continued work until suspension in August 1998.

On September 1, 1999, Pyramid filed for arbitration with the Construction Industry Arbitration Commission (CIAC) against Macrogen Realty for unpaid billings.
Before the arbitration hearing, on April 17, 2000, Pyramid and Macrogen executed a Compromise Agreement obligating Macrogen to pay PHP 6,000,000 in six monthly installments, with an acceleration clause upon two consecutive defaults.

Concurrently, Bitanga executed a Contract of Guaranty, irrevocably guaranteeing Macrogen’s PHP 6,000,000 obligation.
Macrogen defaulted; on September 7, 2000, CIAC granted execution. The sheriff’s return (November 29, 2000) showed only a PHP 20,242.33 bank deposit.
On January 3, 2001, Pyramid demanded payment from Bitanga as guarantor; no payment or assets were identified by him.

Pyramid alleged that Marilyn Andal Bitanga, as controlling stockholder of entities owning Macrogen, benefited from and should be sued with her husband.
On September 6, 2001, Pyramid filed with the RTC a Complaint for specific performance, damages, and preliminary attachment against both spouses.
Marilyn moved to dismiss for lack of cause of action; denied on January 24, 2002. Bitanga filed an Answer raising lack of representation, the benefit of excussion, and counterclaimed damages.

Following pre-trial on September 5, 2002, Pyramid moved for summary judgment asserting no genuine issue of material fact.
On November 29, 2002, the RTC granted summary judgment, holding both spouses solidarily liable for PHP 5,979,757.77 plus costs. Motion for reconsideration denied January 26, 2003.
On appeal (CA-G.R. CV No. 78007), the Court of Appeals (April 11, 2006) affirmed with modification, absolving Marilyn of liability. Its July 5, 2006 resolution denied reconsideration.

Whether genuine issues of material fact exist to preclude summary judgment.
Whether petitioner, as guarantor, validly invoked the benefit of excussion under Articles 2058–2062 of the Civil Code.
Whether Marilyn Andal Bitanga could be held liable despite not signing the Compromise Agreement or Guaranty.