Facts:

• On September 17, 1952, Warner, Barnes & Co., Ltd. (plaintiff) filed a case against Luzon Surety Co., Inc. (defendant) in the Court of First Instance of Negros Occidental.
• The plaintiff sought to recover P6,000, plus costs and P1,500 for attorney's fees, based on a surety bond of P6,000 filed by Agueda Gonzaga, administratrix of the Intestate Estate of Agueda Gonzaga, on January 6, 1951.
• The bond's condition stated it would be void if the administratrix failed to perform specific duties, including preparing an inventory of the estate's assets and paying debts.
• The plaintiff claimed an approved debt against the estate of P6,485.02, alleging the administratrix breached her obligations by not filing an inventory or paying the claim.
• The defendant was accused of failing to pay despite demands and raised defenses including lack of jurisdiction and that the administratrix was not authorized to pay the claim.
• The plaintiff's motion for summary judgment was granted on January 17, 1953, ordering the defendant to pay P6,000, P900 for attorney's fees, and costs.
• The defendant appealed the judgment.

Issue:

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Ruling:

• The Supreme Court ruled that the lower court had jurisdiction to determine the defendant's liability under the bond.
• The Court found no genuine issues of material fact that required a trial, thus affirming the summary judgment.
• The Court held that the bond was enforceable directly by the plaintiff, despite being nominally payable to the Republic of the Philippines.
• The Court concluded that the plaintiff was not required to file a claim against the estate of the deceased administ...(Unlock)

Ratio:

• The Supreme Court reasoned that the lower court's jurisdiction to adjudicate the surety's liability was valid, allowing the bond's enforcement in an ordinary civil action.
• The Court emphasized that the plaintiff's allegations regarding the administratrix's non-compliance were factual and uncontr...continue reading