Republ

icoft
hePhi
li
ppi
nes

SUPREMECOURT

Mani
la

ENBANC

G.
R.No.
L-10547 
   
  J
anuar
y31,
1958

THEPHI
LIPPI
NEGUARANTYCO.
,I
NC.
,
 pet
iti
oner
, 

vs
.

LAURADINI
O,PEDROMANALASTAS,i
nhiscapaci
tyasAdmini
str
atoroft
heI
ntes
tat
eEs
tat
eof
RaymundoManal
ast
as,
andVal
ent
inaPel
ayo,
 r
espondent
s.

Rami
rezandOr
tigasandI
gnac
ioB.
Alc
uazf
orpet
iti
oner
.

Pac
ifi
coL.
Sant
iagof
orr
espondentAl
ejandr
aPel
ayo.

Vi
tal
ianoT.
Est
aci
oforr
espondentPedr
oManal
ast
as,
etc
.

LABRADOR,
 
J.:

Appealby 
c er
tior
ari 
from ajudgmentoftheCour tofAppeals,
reversi
ngt hatoftheCourtofFi
rst
I
ns t
anceofNuevaEc ij
a,i
nfavoroft hepeti
ti
onerandagainstLauraDinioandPedr oManalastas
forthepaymentbyt helatt
erofthes um ofP11,000infavoroftheplaintif
f,withint
erest
sand
costs.
Thefact
sasf oundbyt heCourtofAppealsarestat
edbyt hatcourtasfoll
ows :

ItappearsthatinCivi
lCaseNo. C-194oftheCour
tofFir
stInst
anceofIl
ocosSur,LauraDini
owas
suedbyoneCons ol
aci
onNol asco.SaidCourtofFi
rstInst
ancei s
suedawr i
tofpr eli
minary
attachmentwhi chwasleviedont heproper
tyofthedef
endantinthatcase,c
onsist
ingoftruc
ks,
trail
ers,
andwr eckers
,al
lofvarioustonnage,t
oanswerforthejudgmentthatmightberendered
againsther.
OnDec ember21, 1946, defendantLaur aDi nioandt hePhilippineGuar antyCo. I
nc .fi
ledabondof
P11,000wi tht heCour tofFi rstInst anc eofI locosSurf orthel iftingoft heattac hment ;saidbond
wast os ec urepaymentt ot heplaint i
f fofanyj udgments hemayr ecoveragai ns tthedef endant .
Ont hes ameday,Dec ember21,1946,s aidLaur aDi ni
oandRaymundoManal astasex ecuted
acount er-gur ant ywithmor t
gage( Exh.C)i nf avoroft hePhi lippineGuar ant yCo. ,Inc.(the
plai
nt i
ff-appel lantinthepr es entc as e)inor dertoi ndemni fythel att
erf oranydamage, prejudice,
loss
es ,c os t
s,payment s,advanc es ,andanyot herexpens esofwhat everki nd and nat ure,
incl
uding at tor ney'
sf eeswhi c
ht he s aid Phi l
ippi ne Guar ant y Co. ,I nc.mi ghti ncuras a
consequenc eofanyexec utiont hatmi ghtbel eviedons aidbond.Thec ount erguar rantywi th
mort gageabovement i
onedwasr egi st
eredandwi thther es pec t
iveof f
icesoft her egisterof
deedsofI loc osSurandPampanga,i nasmuc hast her ealpr oper tyofRaymundoManal astas,
subjectmat teroft hemor t
gagedes cribedi nExhibitC, issi
tuat edi nPampanga.

OnJ une30, 1948, judgmentwasr ender edi ns aidCi vilCas eNo. C-194, orderingdef endantLaur a
Diniot or etur nt opl aint if
fCons olacionNol as c othes um ofP10, 000.Laur aDi ni
of ailedt osatisfy
thej udgments ot hePhi li
ppi neGuar ant yCo. , I
nc .wi tht hes heri
ffoft heCi tyofMani l
at osatisfy
thej udgment .Ther eaf t er,pet i
tionerher eindemandedt hepaymentof thes um pai dbyi tt o
satisfyt hejudgmenti nCi vi lCas eNo. C- 194andast hepaymentdemandedwasnotf or thcomi ng,
thepr es entac tion wasbr oughtagai ns tres pondent sLaur sDi nioand Pedr oManal ast
asi n
exec utionm oft hec ount erbondt hatt heyhadf iledi nf avoroft hepet i
tioner .TheCour tofFi rst
Instanc eofNuevaEc ijaf oundf ort hepl ai ntiff-pet i
tionerbutonappealt ot heCour tofApeal sthe
lat
t err evers edt hej udgmenthol dingt hatt hec ount erbondexec ut edbyRaymundoManal as tas
wasexec utedwi thoutanyval uabl ec ons iderat ion. Itfur therhel dthatast hepr opert yc overedby
thec ount erbondwasc onj ugalpr oper tyofRaymundoManal as
tasandVal ent i
naPel ayoandas
theenc umbr anc ec r eat edbyManal as taswasi nf raudofhi sspous e,Ari
cle1413oft heCi vi
lCode
shoul dbemadeappl i
c ableandi nac c ordanc et her ewi th,asRaymundoManal astasi sal ready
dead,an i nvent or yoft hec onjugalpr oper tybemadeand t heobl igation c reat ed byt he
count er bondbec har gedagai nsthi ss har ei nt hec ount er bondbei ngnul landvoi di ns ofarast he
samenotbec over edbyt hes hareofManal as tasi nt hec onjugalpr operty.Thec our t
, ther ef
or e,in
af i
nalor derr ender edaf teramot iont or ec ons idert heor i
ginaldec isi
onhadbeenpr esent ed,
order edt hatt hec as eber et urnedt ot heCour tofFi rsti nstancef orther eceptionofaddi ti
onal
evidenc e andf ors uc h ot heri mpor t
antpr oc eedi ngsasmay be nec es sary and pr opert o
deter mi newhet herornott her i
ght sandi nt er es tofVal entinaPel ayo,ass urvivings pous eof
Raymundo Manal as tas , was pr ejudi ced by t he i nc umbr ancein ques ti
on. Pet iti
on
for 
c ertiorari wasf iledi nt hisCour tagai ns ts aiddec isionandt hesamewasgi venduec our s
e.

Thei
mpor
tantques
tionpr
esent
edt
oUsf
ordec
isi
oni
swhet
herornott
hec
ount
erbond,Exhi
bit
"C,
"whichRamundoManal
ast
as,j
oint
lywi
thLauraDini
o,exec
utedinfavoroft
hepet
iti
oner,The
Phil
ippi
neGuarant
yCo.,I
nc.
,is
nullandvoidforlackofval uabl
ec onsi
der
ati
oninf avorof
RaymundoManalast
as.

I
tisevidentthatthecounterbondexec ut
edj ointlybyRaymundoaManal astas
withLauraDinio,
Exhibi
t"C,
"wasexecutedbyt hemi nordertos ecurethebondbyt hePhi
li
ppineGuarantyCo.,
Inc.
i
nf avorofLauraDinio.Thefactthatthebondwasf ort
hebenef i
tofLauraDinio,andnotf or
Raymundo Manal ast
as,jointl
y ors i
ngly ,doesnotmean t he count
erbond wasex ec
uted
byManalast
aswi t
houtanyval uableconsider
at ion.Thecons
iderati
oninsuchc as
eisthatwhic h
suuport
stheprinci
paldebtor'
sobligat
ion.

Thec l
aim oftheappell
ant sthatther
ewasnoc onsiderati
onf ortheirguarr
antycannotbe
sust
ained.Thec onsi
derati
onwhi chsupport
st heobl igati
onast othepr inc
ipaldebtori
sa
suff
ici
entconsider
ati
ont osupporttheobli
gati
onoft hes uret
ies.I
tisnotnec ess
arytoprove
anyconsi
derat
ionasbetweenthemandt hecredi
t or.
"(Pylevs.Johnson,etal
.,
9Phil.
249,251.
).

Theproofshowst hatthemoneyc laimedinthisac t

ionhasneverbeenpai dandisstil
lowingto
theplaint
iff
;andt heonlydefensewor thnothi
ngi nthisdeci
si
oni stheasset
ionont hepartof
Enri
queEc hausthather ecei
vednothingforaff
ixingt hesi
gnatureasguarant
ortot hecontr
act
whichisthesubj
ectofsuitandthatineffectt
hec ontractwasl
ac ki
nginconsi
derat
ionastohim.

Thepointi
snotwelltaken.
Aguarant
ororsuret
yisboundbythesamecons
iderati
onthatmakes
thecontr
actef
fec
tivebetweent
heprinc
ipalt
herto.
(Pyl
evs.
Johns
on,9Phil
.249.)..
..

Seeal
soEnr
iquezdel
aCavadavs
.Di
az,
37Phi
l.982;Ac
unavs
.Vel
oso,
50Phi
l.
241.

Theexecutionoft hebondi nthePhili

ppineGuar antyCo.,I
nc.peti
ti
onerher
ein,
infavorofLaura
Dini
o,is,t her
efore,thec onsi
derati
on fort heexecuti
on oft hecounter
bond byRay mundo
Manalastas.Itisnotnec essarythatsuchc onsider
at i
on,theexecuti
onoft hebondbyt he
Phil
ippi
neGuar antyCo.,Inc .redound dir
ectlyt ot hebenefitofRaymundoManal as
tas;it
is
enought hatitwasfavorabletoLauraDi ni
o.

I
nvi
ewoft
hef
oregoi
ng,t
hedec
isi
onoft
heCour
tofAppeal
sisher
ebyr
ever
sedands
etas
ide
andt
hatoft
heCour
tofFi
rstI
nst
anc
e,af
fi
rmed,
wit
hcos
tsagai
nstt
her
espondent
s.

Bengzon,Par
as,C.
J.,Padil
la,Mont
emayor
,Reyes
,A.
,Baut
ist
aAngel
o,Conc
epc
ion,Reyes
,J.
B.L.
,
Endenci
a,andFeli
x,JJ.
, 
concur.

TheLawphi
lPr
ojec
t-Ar
ell
anoLawFoundat
ion