GR 185945; (December, 2012) (Digest)
G.R. No. 185945 ; December 05, 2012
FIDELIZA J. AGLIBOT, Petitioner, vs. INGERSOL L. SANTIA, Respondent.
FACTS
Respondent Ingersol Santia loaned ₱2.5 million to Pacific Lending & Capital Corporation (PLCC), with petitioner Fideliza Aglibot, PLCC’s manager and a major stockholder, executing a promissory note on the corporation’s behalf. As security, Aglibot issued eleven post-dated personal checks to Santia. Upon presentment, the checks were dishonored for insufficiency of funds. Santia filed eleven BP 22 cases against Aglibot. The Municipal Trial Court acquitted Aglibot on reasonable doubt but ordered her to pay Santia the total face value of the checks. On appeal, the Regional Trial Court reversed the civil liability award, absolving Aglibot. The RTC ruled that Aglibot acted merely as a guarantor for PLCC’s loan, and Santia failed to exhaust all remedies against the principal debtor, PLCC, a condition precedent for holding a guarantor liable.
ISSUE
Whether the Court of Appeals correctly reversed the RTC and held petitioner Aglibot civilly liable for the value of the dishonored checks.
RULING
Yes, the Court of Appeals was correct. The Supreme Court affirmed that Aglibot is civilly liable as an accommodation party under the Negotiable Instruments Law, not merely a guarantor under the Civil Code. An accommodation party lends their credit to the accommodated party by signing the instrument without receiving value, thereby binding themselves to a holder for value as if the contract were for their own benefit. Aglibot’s issuance of her personal checks to secure PLCC’s loan makes her an accommodation party for the corporation. Consequently, her liability to Santia, a holder for value, is direct and primary. The defense of excussion or exhaustion of remedies against the principal debtor (PLCC) is inapplicable. A guarantor’s obligation under the Civil Code is accessory and requires prior demand on the principal, but an accommodation party’s liability on the instrument is solidary. Since the checks were issued for the loan’s security and were dishonored, Aglibot is liable for their face value. The civil liability survives acquittal in the BP 22 cases, as it arises from the instrument’s issuance, not the criminal act.