Republic of the Philippines

SUPREME COURT
Manila
EN BANC
G.R. No. L-!"#" Septe$be% &"' (")
M*RA +ERMANOS' *NC.' plaintiff-appellee'
,s.
MAN*LA TOBACCON*STS' *NC.' ET AL.' -efen-ants.
PRO.*/ENT *NSURANCE CO.' -efen-ant-appellant.
E. .. 0ila$o% fo% appellant.
Ra$i%e1 an- O%ti2as fo% appellee.
E%nesto 3a%a2o1a fo% -efen-ant' Manila Co$pa4ia -e Se2u%as.
O3AETA' 5.6
This appeal has been ce%tifie- to this cou%t b7 the Cou%t of Appeals because it in,ol,es
onl7 a 8uestion of la9 a%isin2 f%o$ the follo9in2 facts6
B7 ,i%tue of a 9%itten cont%act :E;hibit A< ente%e- into bet9een Mi%a +e%$anos' *nc.' an-
Manila Tobacconists' *nc.' the fo%$e% a2%ee- to -eli,e% to the latte% $e%chan-ise fo% sale
on consi2n$ent un-e% ce%tain specifie- te%$s an- the latte% a2%ee- to pa7 to the fo%$e% on
o% befo%e the &=th -a7 of each $onth the in,oice ,alue of all the $e%chan-ise sol- -u%in2
the p%ece-in2 $onth. Mi%a +e%$anos' *nc.' %e8ui%e- of the Manila Tobacconists' *nc.' a
bon- of P)'===' 9hich 9as e;ecute- b7 the P%o,i-ent *nsu%ance Co.' on Septe$be% &'
(")" :E;hibit B<' to secu%e the fulfill$ent of the obli2ation of the Tobacconists un-e% the
cont%act :E;hibit A< up to the su$ of P)'===.
*n the $onth of Octobe%' ("=' the ,olu$e of the business of the Tobacconists ha,in2
inc%ease- so that the $e%chan-ise %ecei,e- b7 it on consi2n$ent f%o$ Mi%a +e%$anos
e;cee-e- P)'=== in ,alue' Mi%a +e%$anos %e8ui%e- of the Tobacconist an a--itional bon-
of P&'===' an- in co$pliance 9ith that %e8ui%e$ent the -efen-ant Manila Co$pa4ia -e
Se2u%os' on Octobe% (>' ("=' e;ecute- a bon- of P&'=== :E;hibit C< 9ith the sa$e
te%$s an- con-itions :e;cept as to the a$ount< as the bon- of the P%o,i-ent *nsu%ance Co.
On 5une (' ("(' a final an- co$plete li8ui-ation 9as $a-e of the t%ansactions bet9een
Mi%a +e%$anos an- the Tobacconists' as a %esult of 9hich the%e 9as foun- a balance -ue
f%o$ the latte% to the fo%$e% of P&'&#&.#"' 9hich in-ebte-ness the Tobacconists
%eco2ni1e- but 9as unable to pa7. The%eupon Mi%a +e%$anos $a-e a -e$an- upon the
t9o su%et7 co$panies fo% the pa7$ent of sai- su$.
The P%o,i-ent *nsu%ance Co.' pai- onl7 the su$ of P(')>).>#' 9hich is >=? of the
a$ount o9ne- b7 the Tobacconists to Mi%a +e%$anos' alle2in2 that the %e$ainin2 =?
shoul- be pai- b7 the othe% su%et7' Manila Co$pa4ia -e Se2u%os' in acco%-ance 9ith
a%ticle !()# of the Ci,il Co-e. The Manila Co$pa4ia -e Se2u%os %efuse- to pa7 the
balance' conten-in2 that so lon2 as the liabilit7 of the Tobacconists -i- not e;cee-
P)'===' it 9as not boun- to pa7 an7thin2 because its bon- %efe%%e- onl7 to the obli2ation
of the Tobacconists in e;cess of P)'=== an- up to P@'===. +ence Mi%a +e%$anos' *nc.'
b%ou2ht this action a2ainst the Manila Tobacconists' *nc.' P%o,i-ent *nsu%ance Co.' an-
Manila Co$pa4ia -e Se2u%os to %eco,e% f%o$ the$ Aointl7 an- se,e%all7 the su$ of
P"=".(& 9ith le2al inte%est the%eon f%o$ the -ate of the co$plaint.
The cont%o,e%s7 is $ainl7 bet9een the t9o su%et7 co$panies. *n its ans9e% the -efen-ant
Manila Co$pa4ia -e Se2u%os alle2e- as a special -efense6
. B Cue la fian1a oto%2a-a po% esta -e$an-a-a DManila Co$pania -e Se2u%osD' el
Octub%e -e ("= fue e;i2i-a po% la -e$an-ante solo cuan-o el i$po%te -e las $e%cancias
se%,i-as po% esta 7 pe-i-as po% la -e$an-a-a Manila Tobacconists' *nc.' e;ce-io -e la
su$a -e P)'=== 2a%anti1a-a po% la ot%a -e$an-a-a P%o,i-ent *nsu%ance Co.E po% lo 8ue
8ue-o enten-i-o ent%e la -e$an-ante 7 las t%es -e$an-a-as 8ue la fian1a -e P&'===
p%esta-a el Octub%e -e ("= po% esta -e$an-a-a' DManila Co$pa4ia -e Se2u%osD' se
li$itaba 7 e%a pa%a %espon-e% sola$ente -el i$po%te -e $e%cancias se%,i-a- a la
-e$an-a-a Manila Tobacconists' *nc.' en tanto en cuanto el ,alo% -e esas $e%cancias
e;ce-iese -e P)'=== ase2u%a-a po% la fian1a P)'=== -e la Manila Tobacconists' *nc.
To that the -efen-ant P%o,i-ent *nsu%ance Co. %eplie-6
Cue no es ,e%-a- el hecho ale2a-o po% la -e$an-a-a DManila Co$pa4ia -e Se2u%osD en el
pa%%afo -e su contestacion 8ue -ice6 D8ue 8ue-o enten-i-o ent%e la -e$an-ante 7 las t%es
-e$an-a-as 8ue la fian1a -e P&'=== p%esta-a el Octub%e -e ("= po% esta -e$an-a-a
FManila Co$pa4ia -e Se2u%osF se li$itaba 7 e%a pa%a %espon-e% sola$ente -el i$po%te -e
$e%cancias se%,i-as a la -e$an-a-a Manila Tocacconists' *nc.' en tanto en cuanto el
,alo% -e esas $e%cancias e;ce-iese -e P)'=== ase2u%a-a po% la fian1a -e P)'=== -e la
FManila Tobacconists' *nc.F
Cue la -e$an-a-a' a8ui co$pa%eciente' nunca ha teni-o conoci$iento ni $enos p%esta-o
su consenti$iento a esa supuesta inteli2encia.
Cue esta -e$an-a-a no pue-e se% p%i,a-a -el beneficio -e -i,ision a 8ue tiene -e%echo
co$o co-fia-o%' sin 8ue conste e;p%esa$ente' po% esc%ito' su confo%$i-a- 7
consenti$iento -e %enuncia% a su -e%echo.
Thus the%e 9as an issue of fact bet9een the t9o su%et7 co$panies' ,i1.6 9hethe% the
un-e%stan-in2 bet9een the plaintiff an- the th%ee -efen-ants 9as' that the bon- of P&'===
2i,en b7 the Manila Co$pa4ia -e Se2u%os 9as li$ite- to an- %espon-e- fo% the
obli2ation of the Tobacconists onl7 insofa% as it $i2ht e;cee- the a$ount of P)'===
secu%e- b7 the bon- of the P%o,i-ent *nsu%ance Co. That issue of fact 9as -eci-e- b7 the
t%ial cou%t in fa,o% of the contention of the Manila Co$pa4ia -e Se2u%osE an- Au-2$ent
9as %en-e%e- b7 it a2ainst the P%o,i-ent *nsu%ance Co. alone fo% the a$ount clai$e- b7
the plaintiff.
AppellantDs fi%st t9o assi2n$ents of e%%o% :the thi%- bein2 a $e%e conse8uence of the fi%st
t9o< %ea- as follo9s6
(. El Au12a-o infe%io% incu%%io en e%%o% al hace% caso o$iso -el beneficio -e -i,ision
%ecla$a-o po% la -e$an-a-a P%o,i-ent *nsu%ance Co. of the Philippines con a%%e2lo a lo
-ispuesto en el A%t. (!)# -el Co-i2o Ci,il.
&. El Au12a-o e%%o al aplica%' en lu2a% -e lo -ispuesto en el A%t. (!)# -el Co-i2o Ci,il'
una teo%ia su7a' -ecla%an-o 8ue la fian1a -e P)'===.== p%esta-a po% P%o,i-ent *nsu%ance
Co. of the Philippines 7 la fian1a -e P&'=== -e Manila Co$pa4ia -e Se2u%os' ca-a una
tiene una esfe%a -e %esponsabili-a- p%opia e in-epen-iente la una -e la ot%a.
/iscussin2 these t9o assi2n$ents of e%%o% Aointl7' counsel sa7s6
La unica cuestion 8ue se p%esenta en esta causa es pu%a$ente -e -e%echo. Si el sal-o
-eu-o% -e P&'&#&.#" 8ue Tobacconists ha -eAa-o -e pa2a%' -eben pa2a%lo en su lu2a%' los
-os fia-o%es p%opo%cional$ente a la cuantia en 8ue se obli2a%on o -ebe pa2a%lo sola 7
e;clusi,a$ente la fia-o%a P%o,i-ent *nsu%ance Co.' co$o o%-ena la sentencia opela-a.
Thus it appea%s that the issue of fact %aise- b7 an- bet9een the t9o su%et7 co$panies
befo%e the t%ial cou%t an- -eci-e- b7 the latte% in fa,o% of the appellee Manila Co$pa4ia
-e Se2u%os is no lon2e% %aise- befo%e this Cou%t' appellant P%o,i-ent *nsu%ance Co.
ha,in2 li$ite- the issue in this appeal to 9hethe% o% not it is entitle- to the Fbenefit of
-i,isionF p%o,i-e- in a%ticle (!)# of the Ci,il Co-e' 9hich %ea-s as follo9s6
A%t. (!)#. Shoul- the%e be se,e%al su%eties of onl7 one -ebto% fo% the sa$e -ebt' the
liabilit7 the%efo% shall be -i,i-e- a$on2 the$ all. The c%e-ito% can clai$ f%o$ each
su%et7 onl7 his p%opo%tional pa%t unless liabilit7 in soli-u$ has been e;p%essl7 stipulate-.
The %i2ht to the benefit of -i,ision a2ainst the co-su%eties fo% thei% %especti,e sha%es
ceases in the sa$e cases an- fo% the sa$e %eason as that to an e;haustion of p%ope%t7
a2ainst the p%incipal -ebto%.
Gith pa%ticula% %efe%ence to the secon- assi2n$ent of e%%o%' 9e fin- that the state$ent of
the t%ial cou%t to the effect that the bon- of P)'=== %espon-e- fo% the obli2ation of the
Tobacconists up to the su$ of P)'=== an- the bon- of P&'=== %espon-e- fo% the
obli2ation of the Tobacconists onl7 insofa% as it $i2ht e;cee- P)'=== an- up to P@'===' is
not a $e%e theo%7 but a fin-in2 of fact base- upon the un-ispute- testi$on7 of the
9itnesses calle- b7 the -efen-ant Manila Co$pa4ia -e Se2u%os in suppo%t of its special
-efense he%einbefo%e 8uote-. Ghile on its face the bon- 2i,en b7 the Manila Co$pa4ia
-e Se2u%os contains the sa$e te%$s an- con-itions :e;cept as to the a$ount< as those of
the bon- 2i,en b7 the P%o,i-ent *nsu%ance Co.' ne,e%theless it 9as plea-e- b7 the Manila
Co$pa4ia -e Se2u%os an- foun- p%o,en b7 the t%ial cou%t F8ue la intencion %eal$ente 8ue
se habia pe%se2ui-o' po% lo $enos en lo 8ue %especta a la Manila Tobacconists' *nc.' 7 la
Manila Co$pa4ia -e Se2u%os' e%a la -e 8ue esta fian1a -e P&'=== hab%ia -e %espon-e%
sola$ente po% to-o a8uello 8ue e;ce-ie%a -e los P)'===.F
The e,i-ence upon 9hich that fin-in2 is base- is not onl7 un-ispute- but pe%fectl7
%easonable an- con,incin2. 0o%' as the t%ial cou%t obse%,e-' the%e 9oul- ha,e been no
nee- fo% the a--itional bon- of P&'=== if its pu%pose 9e%e to co,e% the fi%st P&'===
al%ea-7 co,e%e- b7 the P)'=== bon- of the P%o,i-ent *nsu%ance Co. *n-ee-' 9e $i2ht
a--' if the pu%pose of the a--itional bon- of P&'=== 9e%e to co,e% not the e;cess o,e% an-
abo,e P)'=== but the fi%st P&'=== of the obli2ation of the p%incipal -ebto% liHe the bon- of
P)'=== 9hich co,e%e- onl7 the fi%st P)'=== of sai- obli2ation' then it 9oul- %esult that
ha- the obli2ation of the Tobacconists e;cee-e- P)'===' neithe% of the t9o bon-s 9oul-
ha,e %espon-e- fo% the e;cess' an- that 9as p%ecisel7 the e,ent a2ainst 9hich Mi%a
+e%$anos 9ante- to p%otect itself b7 -e$an-in2 the a--itional bon- of P&'===. 0o%
instance' suppose that the obli2ation of the p%incipal -ebto%' the Tobacconists' a$ounte-
to P@'===E if both bon-s 9e%e co-e;tensi,e up to P&'=== B as 9oul- lo2icall7 follo9 if
appellantDs contention 9e%e co%%ect B the %esult 9oul- be that the fi%st P&'=== of the
obli2ation 9oul- ha,e to be -i,i-e- bet9een an- pai- e8uall7 b7 the t9o su%et7
co$panies' 9hich shoul- pa7 P('=== each' an- of the balance of P)'=== the P%o,i-ent
*nsu%ance Co. 9oul- ha,e to pa7 onl7 P('=== $o%e because its liabilit7 is li$ite- to the
fi%st P)'===' thus lea,in2 the plaintiff in the lu%ch as to the e;cess of P&'===. That 9as
$anifestl7 not the intention of the pa%ties. As a $atte% of fact' 9hen the P%o,i-ent 2a,e its
bon- an- fi;e- the p%e$iu$s the%eon it assu$e- an obli2ation of P)'=== in soli-u$ 9ith
the Tobacconists 9ithout an7 e;pectation of an7 benefit of -i,ision 9ith an7 othe% su%et7.
The a--itional bon- of P&'=== 9as' $o%e than a 7ea% late%' %e8ui%e- b7 the c%e-ito% of the
p%incipal -ebto% fo% the p%otection of sai- c%e-ito% an- ce%tainl7 not fo% the benefit of the
o%i2inal su%et7' 9hich 9as not entitle- to e;pect an7 such benefit.
The fo%e2oin2 consi-e%ations' 9hich fo%tif7 the t%ial cou%tDs conclusion as to the %eal
intent an- a2%ee$ent of the pa%ties 9ith %e2a%- to the bon- of P&'=== 2i,en b7 the Manila
Co$pa4ia -e Se2u%os' -est%o7s at the sa$e ti$e the theo%7 of the appellant %e2a%-in2 the
applicabilit7 of a%ticle (!)# of the Ci,il Co-e.
That a%ticle %efe%s to se,e%al su%eties of onl7 one -ebto% fo% the sa$e -ebt. *n the instant
case' altho the t9o bon-s on thei% face appea% to 2ua%antee the sa$e -ebt co-e;tensi,el7
up to P&'=== B that of the P%o,i-ent *nsu%ance Co. alone e;ten-in2 be7on- that su$ up
to P)'=== B it 9as plea-e- an- conclusi,el7 p%o,en that in %ealit7 sai- bon-s' o% the t9o
su%eties' -o not 2ua%antee the sa$e -ebt because the P%o,i-ent *nsu%ance Co. 2ua%antees
onl7 the fi%st P)'=== an- the Manila Co$pa4ia -e Se2u%os' onl7 the e;cess o,e% an-
abo,e sai- a$ount up to P@'===. A%ticle (!)# -oes not appl7 to this factual situation.
The Au-2$ent of the t%ial cou%t is affi%$e-' 9ith the onl7 $o-ification that it shall be
ente%e- a2ainst the -efen-ants Manila Tobacconists' *nc.' an- P%o,i-ent *nsu%ance Co.
Aointl7 an- se,e%all7. Appellant shall pa7 the costs of this instance.
Iulo' C.5.' Mo%an' Pa%as an- Bocobo' 55.' concu%.