G.R. No. 190286 - Reyes vs. Bancom Development Corp.

Bancom Development Corporation (“Bancom”) granted loans to Marbella Realty, Inc. (“Marbella”) under an Underwriting Agreement, evidenced by four sets of Promissory Notes dated May 24, 1979, August 22, 1979, November 27, 1979, and February 28, 1980, aggregating initially P2,828,140.32 and rising to P3,002,333.84.
Ramon E. Reyes and Clara R. Pastor, together with other members of the “Reyes Group,” executed a Continuing Guaranty in March 1979 to guarantee full payment of Marbella’s obligations under those notes.

Marbella defaulted on each set of notes despite repeated demands. Bancom filed suit on July 7, 1981 before the RTC of Makati for P4,300,247.35 (principal, interests, penalties), naming Marbella as principal debtor and the Reyes Group as guarantors.
At trial, defendants argued coercion, alleged linkage of the notes to an earlier Marbella II condominium project venture with Bancom and sister company Fereit Realty, and presented a Memorandum of Agreement and its Amendment to show additional advances were for Fereit’s benefit.

The RTC, in its April 8, 1991 Decision, held Marbella and the Reyes Group solidarily liable for P4,300,247.35 plus interest, penalties, and attorney’s fees.
On appeal, the CA denied relief in its June 25, 2009 Decision, finding the promissory notes and guaranty genuine, unequivocal, and unpaid, and rejecting defenses based on earlier agreements and absence of third-party action against Fereit. The CA likewise denied the Reyes Group’s motion for reconsideration on November 9, 2009.

Whether the suit is abated by the revocation of Bancom’s Certificate of Registration by the SEC.

Whether petitioners are liable to pay (a) the loan amounts indicated on Marbella’s Promissory Notes and (b) attorney’s fees.