Case Digest (G.R. No. 72275)
Facts:
Pacific Banking Corporation v. Hon. Intermediate Appellate Court and Roberto Regala, Jr., G.R. No. 72275, November 13, 1991, the Supreme Court First Division, Medialdea, J., writing for the Court.Plaintiff Pacific Banking Corporation issued a Pacificard credit card to Celia Aurora Syjuco Regala on October 24, 1975, under written "Terms and Conditions" that made issuance conditional on the joint and several signature of a third party. On the same date Celia’s spouse, Roberto Regala, Jr., signed a document entitled "Guarantors Undertaking" by which he agreed, jointly and severally with Celia, "to pay the Pacific Banking Corporation upon demand any and all indebtedness, obligations, charges or liabilities due and incurred by said Celia ... with the use of the Pacificard or renewals thereof." That undertaking also expressly waived release by reason of any change, novation, or extension in the card terms, and described the promise as continuing until all liabilities were paid.
Celia charged purchases on the Pacificard totaling P92,803.98. After demand (document dated November 17, 1978) and Celia’s failure to pay, Pacific Banking filed a civil action for sum of money against both Celia and Roberto. Celia was declared in default for failing to answer; Roberto filed an Answer with Counterclaim admitting execution of the undertaking but contending his liability was limited to P2,000.00 per month (the card’s monthly credit limit). During the trial the City Hall fire destroyed court records, but the case file was reconstituted and, after a missed pretrial appearance by Roberto, the trial court allowed plaintiff to present evidence ex parte and rendered judgment on December 5, 1983, in favor of Pacific Banking for P92,803.98 with 14% interest compounded annually, attorneys’ fees of 15% and costs; Roberto’s counterclaim was dismissed.
Defendants appealed to the Intermediate Appellate Court. On August 12, 1985 the appellate court modified the trial court judgment only as to Roberto, holding him liable only for purchases made with the Pacificard from October 29, 1975 to October 29, 1976, and only up to P2,000.00 per month, with interest at 14% per annum from filing of the complaint; it denied costs. Pacific Banking’s motion ...(Subscriber-Only)
Issues:
- Did the Court of Appeals correctly limit Roberto Regala, Jr.’s liability as guarantor/surety to P2,000.00 per month for purchases made from October 29, 1975 to October 29, 1976?
- Was the "Guarantors Undertaking" signed by Roberto Regala, Jr. a contract of suretyship that, by its terms (including waiver of release upon novation or extension), bound him jointly and severally for all indebtedness incurred...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)