Case Digest (G.R. No. L-16968)
Facts:
Philippine National Bank v. Concepcion Mining Company, Inc., G.R. No. L-16968, July 31, 1962, the Supreme Court En Banc, Labrador, J., writing for the Court.The Philippine National Bank (plaintiff-appellee) sued Concepcion Mining Company, Inc. and Jose S. Sarte (defendants-appellants) in the Court of First Instance of Manila, Hon. Gustavo Victoriano presiding, to recover the face amount of a promissory note dated March 12, 1954. The note recited "NINETY DAYS after date, for value received, I promise to pay to the order of the Philippine National Bank" and contained, among other clauses, a provision that in case of collection through counsel the makers and endorsers shall pay ten percent (10%) of the amount due as attorney's fees, and language indicating that makers who signed jointly were liable (the note was signed by Concepcion Mining Co., Vicente L. Legarda and Jose S. Sarte).
The trial court rendered judgment against Concepcion Mining Company, Inc. and Jose S. Sarte, ordering them to pay P7,197.26 with interest to September 29, 1959, daily interest thereafter, ten percent attorney's fees and costs. In their answer the defendants asserted as a special defense that co-maker Don Vicente L. Legarda had died on February 24, 1946 and that his estate was subject to Special Proceedings No. 29060 in the Court of First Instance of Manila; they prayed that Legarda’s estate be included as a party-defendant.
The trial court denied the defense based on the asserted non-inclusion, ruling that inclusion of the deceased co-maker’s estate was unnecessary and immaterial. The court applied Article 1216 of the Civil Code and Section 17(g) of the Negotiable Instruments Law to conclude that where a promissory note is signed jointly and severally the payee may proceed against any one or more signers. A motion for reconsideration was denied, and a subsequent petition for relief to suspend effects of the judgment was likewise denied. The defendants then appealed to the Supreme Court.
On appeal the Court also observed discrepancies in the printed record: the names of the defendants (particularly Jose S. Sarte) d...(Pro-only)
Issues:
- Was the inclusion of the estate of deceased co-maker Vicente L. Legarda as a party-defendant required in the action on the promissory note?
- May the payee of a promissory note signed by two or more persons proceed against any one or more of the signers for the whole amount und...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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