ORIX METRO LEASING AND FINANCE CORPORATION v.

CARDLINE INC

G.R. No. 201417

January 13, 2016

BRION, J.:
Supreme Court – Second Division
Contracts – Benefit of Excussion

FACTS:
Cardline leased four machines from Orix. Cardline's principal stockholders and officers
signed the suretyship agreements in their personal capacities to guarantee Cardline's
obligations under each lease agreement. Cardline’s obligation amounted
P9,369,657.00, Orix demanded for the payment but the former failed to pay. Petitioner
then filed a complaint for recovery of the sum of money. The RTC ruledin favor of the
Petitioner. While the CA ruled in Respondent’s favor.

ISSUE/S: Whether the individual respondents are entitled to the benefit of excussion

Ruling: Even assuming that a party is liable only as a guarantor, he can be held
immediately liable without the benefit of excussion if the guarantor agreed that his
liability is direct and immediate. In effect, the guarantor waived the benefit of excussion
pursuant to Article 2059(1) of the Civil Code. In the present case, the records show that
the individual respondents bound themselves solidarity with Cardline.