7/21/2019 Prudential Bank v Iac http://slidepdf.com/reader/full/prudential-bank-v-iac 1/1 PRUDENTIAL BANK V. IAC GR No. 74886 8 December 1992 FACTS: Philippine Rayon Mills, Inc. PRMI! en"ere# in"o a con"rac" $i"h Nissho %o., &"#. o' (apan 'or "he impor"a"ion o' "e)"ile machineries *n#er a 'i+eyear #e'erre# paymen" plan. -o e''ec" paymen" 'or sai# machineries, PRMI applie# 'or a commercial le""er o' cre#i" $i"h "he pe"i"ioner Pr*#en"ial an/ an# -r*s" %ompany in 'a+or o' Nissho. y +ir"*e o' sai# applica"ion, "he Pr*#en"ial an/ opene# &e""er o' %re#i" No. DPP60762. -herea'"er, Nissho #re$ an# iss*e# #ra'"s aains" sai# le""er o' cre#i" $hich $ere all pai# by "he Pr*#en"ial an/. pon "he arri+al o' "he machineries, "he Pr*#en"ial an/ in#orse# "he shippin #oc*men"s "o PRMI, $hich accep"e# #eli+ery o' "he same. 3s a con#i"ion impose# by Pr*#en"ial on PRMI "o "a/e #eli+ery o' "he machineries, "he la""er e)ec*"e# a "r*s" receip" co+erin all machineries $hich $as sine# by pri+a"e respon#en" 3nacle"o %hi in his capaci"y as Presi#en" o' PRMI, in 'a+or o' Pr*#en"ial. 3" "he bac/ o' "he "r*s" receip" is a prin"e# 'orm "o be accomplishe# by "$o s*re"ies $ho, by "he +ery "erms an# con#i"ions "hereo', $ere "o be oin"ly an# se+erally liable "o "he Pr*#en"ial an/ sho*l# PRMI 'ail "o pay "he "o"al amo*n" or any por"ion o' "he #ra'"s iss*e# by Nissho an# pai# 'or by Pr*#en"ial. None"heless, "he 'orm $as sine# only by %hi. 5*bse*en"ly, PRMI cease# b*siness. o$e+er, i"s oblia"ion arisin 'rom "he le""er o' cre#i" an# "he "r*s" receip" remaine# *npai# an# *nli*i#a"e#. ence, "he presen" ac"ion aains" PRMI an# %hi. ISSUES: 1. N pri+a"e respon#en" %hi may be consi#ere# a *aran"or 2. N %hi may be oin"ly an# se+erally liable $i"h "he principal #eb"or PRMI 'or "he oblia"ion so*h" "o be en'orce# 0. N "he ci+il case aains" %hi sho*l# be #ismisse# since pe"i"ioner Pr*#en"ial an/ has no" e)ha*s"e# all leal reme#ies aains" "he principal #eb"or PRMI HELD: 1. :;5. -he oblia"ion o' %hi is "ha" o' a *aran"or. -his is bols"ere# by "he las" sen"ence in "he "r*s" receip" $hich spea/s o' a $ai+er o' "he bene'i" o' e)ha*s"ion e)c*ssion!. 2. N. %hi is only secon#arily liable. -he soli#ary *aran"y cla*se in "he "r*s" receip" $o*l# ha+e been e''ec"i+e i' s*ch "r*s" receip" ha# been sine# by "$o *aran"ors, ho$e+er, only %hi sine# s*ch. -he cla*se <$e oin"ly an# se+erally aree an# *n#er"a/e< re'ers "o "he *n#er"a/in o' "he "$o par"ies $ho are "o sin i". I" #oes no" re'er "o "he *n#er"a/in be"$een ei"her one or bo"h o' "hem on "he one han# and PRMI on "he o"her $i"h respec" "o "he liabili"y #escribe# *n#er "he "r*s" receip". 0. N. ;)c*ssion is no" a con#i"ion sine *a non 'or "he ins"i"*"ion o' an ac"ion aains" a *aran"or. -here is no"hin proce#*rally obec"ionable in implea#in %hi as a co#e'en#an" in "he ci+il case. -he pro+isions *n#er "he R*les o' %o*r" allo$ "he permissi+e oin#er o' par"ies.

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7/21/2019 Prudential Bank v Iac

http://slidepdf.com/reader/full/prudential-bank-v-iac 1/1

PRUDENTIAL BANK V. IAC

GR No. 748868 December 1992

FACTS:

Philippine Rayon Mills, Inc. PRMI! en"ere# in"o a con"rac" $i"h Nissho %o., &"#. o' (apan 'or "heimpor"a"ion o' "e)"ile machineries *n#er a 'i+eyear #e'erre# paymen" plan. -o e''ec" paymen"'or sai# machineries, PRMI applie# 'or a commercial le""er o' cre#i" $i"h "he pe"i"ioner Pr*#en"ialan/ an# -r*s" %ompany in 'a+or o' Nissho. y +ir"*e o' sai# applica"ion, "he Pr*#en"ial an/opene# &e""er o' %re#i" No. DPP60762. -herea'"er, Nissho #re$ an# iss*e# #ra'"s aains" sai#le""er o' cre#i" $hich $ere all pai# by "he Pr*#en"ial an/.

pon "he arri+al o' "he machineries, "he Pr*#en"ial an/ in#orse# "he shippin #oc*men"s "oPRMI, $hich accep"e# #eli+ery o' "he same. 3s a con#i"ion impose# by Pr*#en"ial on PRMI "o"a/e #eli+ery o' "he machineries, "he la""er e)ec*"e# a "r*s" receip" co+erin all machineries$hich $as sine# by pri+a"e respon#en" 3nacle"o %hi in his capaci"y as Presi#en" o' PRMI, in'a+or o' Pr*#en"ial. 3" "he bac/ o' "he "r*s" receip" is a prin"e# 'orm "o be accomplishe# by "$o

s*re"ies $ho, by "he +ery "erms an# con#i"ions "hereo', $ere "o be oin"ly an# se+erally liable "o"he Pr*#en"ial an/ sho*l# PRMI 'ail "o pay "he "o"al amo*n" or any por"ion o' "he #ra'"s iss*e#by Nissho an# pai# 'or by Pr*#en"ial. None"heless, "he 'orm $as sine# only by %hi.

5*bse*en"ly, PRMI cease# b*siness. o$e+er, i"s oblia"ion arisin 'rom "he le""er o' cre#i"an# "he "r*s" receip" remaine# *npai# an# *nli*i#a"e#. ence, "he presen" ac"ion aains" PRMIan# %hi.

ISSUES:

1. N pri+a"e respon#en" %hi may be consi#ere# a *aran"or 2. N %hi may be oin"ly an# se+erally liable $i"h "he principal #eb"or PRMI 'or "he oblia"ion

so*h" "o be en'orce#0. N "he ci+il case aains" %hi sho*l# be #ismisse# since pe"i"ioner Pr*#en"ial an/ has

no" e)ha*s"e# all leal reme#ies aains" "he principal #eb"or PRMI

HELD:

1. :;5. -he oblia"ion o' %hi is "ha" o' a *aran"or. -his is bols"ere# by "he las" sen"ence in"he "r*s" receip" $hich spea/s o' a $ai+er o' "he bene'i" o' e)ha*s"ion e)c*ssion!.

2. N. %hi is only secon#arily liable. -he soli#ary *aran"y cla*se in "he "r*s" receip" $o*l#ha+e been e''ec"i+e i' s*ch "r*s" receip" ha# been sine# by "$o *aran"ors, ho$e+er, only%hi sine# s*ch. -he cla*se <$e oin"ly an# se+erally aree an# *n#er"a/e< re'ers "o "he

*n#er"a/in o' "he "$o par"ies $ho are "o sin i". I" #oes no" re'er "o "he *n#er"a/in be"$eenei"her one or bo"h o' "hem on "he one han# and PRMI on "he o"her $i"h respec" "o "heliabili"y #escribe# *n#er "he "r*s" receip".

0. N. ;)c*ssion is no" a con#i"ion sine *a non 'or "he ins"i"*"ion o' an ac"ion aains" a*aran"or. -here is no"hin proce#*rally obec"ionable in implea#in %hi as a co#e'en#an"in "he ci+il case. -he pro+isions *n#er "he R*les o' %o*r" allo$ "he permissi+e oin#er o' par"ies.