Case Digest (G.R. No. L-46095)
Facts:
- The case involves the Philippine National Bank (PNB) as the petitioner and private respondents Fabar Incorporated, Jose Ma. Barredo, Carmen B. Borromeo, and Tomas L. Borromeo.
- On January 16, 1963, PNB provided various credit accommodations to Fabar Incorporated, including a discounting line, an overdraft line, a temporary overdraft line, and letters of credit for machinery and equipment importation.
- PNB also advanced insurance premiums for chattels mortgaged to secure these accommodations.
- By May 13, 1977, the outstanding balance was P8,449,169.98, secured by the joint and several signatures of the private respondents and Manuel H. Barredo.
- Due to the private respondents' failure to meet obligations, PNB filed a collection case on October 31, 1972, in the Court of First Instance of Manila, Branch XII.
- Manuel H. Barredo passed away on May 19, 1975, and the court was notified on June 6, 1975.
- On November 29, 1976, the court dismissed the case, stating the money claim did not survive Barredo's death, referencing Section 6, Rule 86 of the Revised Rules of Court.
- PNB filed a motion for reconsideration on December 14, 1976, which was denied on January 26, 1977, prompting PNB to file a petition for review on certiorari.
Issue:
- (Unlock)
Ruling:
- The Supreme Court ruled in favor of PNB, modifying the orders of the respondent court.
- The case was dismissed against the deceased Manuel H. Barredo but was remand...(Unlock)
Ratio:
- The Supreme Court determined that the respondent court's reliance on Section 6, Rule 86 of the Revised Rules of Court was incorrect.
- The court clarified that this provision does not prevent a creditor from pursuing claims against surviving solidary debtors after one debtor's death.
- Creditors can either file a claim against the deceased debtor's estate or proceed against the survivi...continue reading
Case Digest (G.R. No. L-46095)
Facts:
The case involves the Philippine National Bank (PNB) as the petitioner and several private respondents, namely Fabar Incorporated, Jose Ma. Barredo, Carmen B. Borromeo, and Tomas L. Borromeo. On January 16, 1963, PNB extended various credit accommodations to Fabar Incorporated, which included a discounting line, an overdraft line, a temporary overdraft line, and letters of credit for the importation of machinery and equipment. Additionally, PNB provided advances for insurance premiums related to the chattels mortgaged to secure these credit accommodations. By May 13, 1977, the outstanding balance of these credit accommodations amounted to P8,449,169.98. The obligations were secured by the joint and several signatures of the private respondents and Manuel H. Barredo.
Due to the private respondents' failure to fulfill their obligations despite repeated demands, PNB filed a collection case against all private respondents and Manuel H. Barredo on October 31, 1972, before the Court of First Instance of Manila, Branch XII, presided over by Judge Elias B. Asuncion. On May 19, 1975, Manuel H. Barredo passed away, and his death was communicated to the court on June 6, 1975. Subsequently, on November 29, 1976, the court issued an order dismissing the case, stating that the money claim did not survive the death of Manuel H. Barredo. The court referenced Section 6, Rule 86 of the Rev...