Case Summary (G.R. No. 32560)
Facts of the Case
The petitioners filed a proceeding to prevent the implementation of a writ of execution issued by the respondent judge. This writ stemmed from a suit initiated by the Standard Oil Company against Cho Siong and his sureties, including the petitioners, for the recovery of money owed due to non-fulfillment of a contract. The background notes several key events, including Cho Siong's actions regarding the surety bonds, the issuance of a preliminary attachment on Ong Guan Can's property, and subsequent legal proceedings that led to the current dispute.
Legal Principles and Obligations
The petitioners provided a personal bond to dissolve an attachment on property owned by Ong Guan Can, which was initially secured by a cash bond. This bond contained provisions stating that in case judgment was against the defendants, they would return the property or pay its value to the plaintiff. The relevant law in this context stems from Section 440 of the Code of Civil Procedure, which governs the process for dissolving attachments and the responsibilities of sureties.
Court’s Interpretation of Surety Liability
The court examined the bond signed by the petitioners and concluded that their obligation was limited to the liability related to Cho Siong’s actions as outlined in the original contract. The court noted that the bond should not extend to debts incurred by the former agent, Tong Kuan, which Cho Siong had assumed without the knowledge of Ong Guan Can. This interpretation aligned with the principle that contracts of suretyship are to be strictly construed.
Ruling on the Writ of Prohibition
The court recognized that the petitioners had no valid obligation to deliver the Funds secured by the bond since Ong Guan Can was found not liable in the earlier decision against him. It further elaborated that compelling the petitioners to follow the ordinary remedial route through appeal would be inadequate and unjust. The court found that the order from which the petitioners sought relief effe
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Case Overview
- This case was instituted to prevent Judge F. Santamaria from enforcing a writ of execution dated November 5, 1929, issued in a civil case by the Standard Oil Company of New York against Cho Siong et al.
- Petitioners Juan Tong and J. Q. Coo Teng Hee claim that the writ is null and void, asserting the lack of a plain and speedy remedy in the ordinary course of justice.
Background Facts
- Cho Siong entered into a contract of agency for the sale of petroleum, committing to furnish a cash bond of P1,000 and a personal bond of P3,000, which was subscribed by his sureties Ong Guan Can and Sun Sy Tong.
- Prior to signing their bond, Cho Siong assumed full responsibility for debts incurred by the former agent, Tong Kuan, without informing his sureties.
- The Standard Oil Company initiated legal action against Cho Siong and his sureties for recovery of the owed amount, leading to a writ of preliminary attachment against Ong Guan Can's property.
- A series of legal proceedings ensued, including Cho Siong's attempts to substitute the cash bond with a personal bond, which was granted upon the submission of a new bond by the petitioners.
Legal Proceedings and Issues
- Ong Guan Can filed a separate suit against the Standard Oil Company for damages due to the unlawful attachment of his property.
- In the appeals concerning these cases, the Supreme Court modified judgments related to the obligations