Gelano vs.

CA
103 SCRA 90
Topic: Charges upon ACP
FC 94

Facts:
Private respondent, Insular Sawmill Inc., (Insular) is a corporation engaged in
general lumber and sawmill business. It leased the paraphernal property of Guillermina
Gelano (wife) in Paco, Manila for P 1,200/month. Carlos Gelano (husband) obtained
cash advances from Insular which amounted to P 20,000, which remained unpaid
despite repeated demands. The wife refused to pay the said debt since it was for the
personal account of her husband, asked for by and given to him, without her knowledge
and consent; also, it did not benefit the family. The Spouses also purchased from
Insular, lumber materials on credit for the repair and improvement of their residence.
These also were unpaid. Insular even helped the spouse in renewing their previous loan
by executing several and joint promissory notes, with Joseph Su as accommodating
party, and the husband in favor of Chinabank. These were payable within 60 days but
were unpaid so it was deducted to the corporate account of Insular with Chinabank.
Carlos paid Insular only a fraction of what the bank deducted, and the wife refused to
pay since she had no knowledge of such accommodation. Thus, Insular filed a
complaint for collection against the Spouses Gelano. In the CFIs decision Carlos was
held liable but when this was petitioned to CA, the Spouses were held jointly and
severally liable.
Issue: WON the conjugal partnership is liable?
Held: Yes. With the findings of the CA that the obligations contracted by the husband
redounded to the benefit of the family, the inevitable conclusion is that the conjugal
property is liable for his debt, pursuant to Art. 1408 of the CC of 1989 which provision
can still be found in Par. 1 Art. 161 of the NCC.