Professional Documents
Culture Documents
Republic Glass v. Qua
Republic Glass v. Qua
BPI (Solidary)
Facts:
March 28, 1978 - Raymundo and Desamparados Crystal obtained a P300,000.00 loan in behalf of the Cebu
Contractors Consortium Co. (CCCC) from the Bank of the Philippine Islands-Butuan branch (BPI-Butuan).
secured by a chattel mortgage on heavy equipment and machinery of CCCC
executed in favor of BPI-Butuan a Continuing Suretyship
29 March 1979, Crystal executed a promissory note 6 for the amount of P300,000.00, favor of BPI-Butuan.
August 1979, CCCC renewed a previous loan from BPI Cebu branch
CCCC had no real property to offer as security for the loan so the spouses executed a real estate mortgage.
CCCC failed to pay its loans to both BPI Butuan and Cebu branch when it’s due.
BPI resorted to the foreclosure of chattel mortgage and the real estate mortgage
BPI filed a complaint for sum of money against CCCC and the spouses
Petitioners who are the heirs of the spouses argue that the failure of the spouses to pay the BPI Cebu was due to
it’s refusal to accept payment unless the loan from Butuan would also be paid. Also, the unjust refusal to accept
payment would also make the obligation extinguished.
Issue: Whether or not the obligation is extinguished
Holding: No, under article 1236, creditor is not bound to accept payment or performance by a third person who has no
interest in the fulfillment of the obligation unless there is a stipulation. There’s no stipulation in the promissory note.
Thus, the spouses alone bear responsibility
Sunga-Chan vs. CA
Facts:
Lamberto Chua (respondents) and Jacinto Sunga, husband of Cecilia Sunga (petitioner), formed a partnership to
engage in the marketing of liquefied petroleum gas in 1977, which was named Shellite that was registered as a
sole proprietorship in the name of Jacinto
Lilibeth Sunga-Chan and Sunga continued the business when Jacinto died in 1989, without Chua’s consent.
Chua repeatedly demanded for accounting but was ignored which prompted him to file a Complaint for Winding
Up of a Partnership Affairs, Accounting, Appraisal, and Recovery of Shares and Damages with a Writ of
Preliminary Attachment.
The accounting report came up with P8,733,644.75 as Chua’s claim
Due to the petitioner’s failure to appear the hearings, they were deemed to have waived the right to object the
claim.
Sheriff of Manila levied the property of Lilibeth Sunga-Chan which was auctioned to Lamberto Chua for P8
million. However, petitioner Sunga-Chan argues that such property forms part of a conjugal partnership
between his husband and cannot be held liable.
the approved claim of respondent Chua is hereby corrected and adjusted to cover only the aggregate amount of
PhP 5,529,392.52;
Subject to the payment by respondent Chua of PhP 2,470,607.48 to petitioner Sunga-Chan
The property was auctioned for a price of P8 million by Chua but the claim of Chua only amounts to
P5,529,392.52 which means that Lamberto Chua owes Lilibeth Sunga-Chan the excess amount of P2,470,607.48.
Citing Article 1226 of the new Civil Code, he argued that in obligations with a penal clause, the penalty substitutes the
indemnity for damages and payment of interest.
if the obligation consists in a sum of money, the only damage a creditor may recover, if the debtor incurs in delay, is the
payment of the interest agreed upon, or the legal interest, unless the contrary is stipulated. (