G.R. No. L‑4895
June 15 1909

FACTS:
– The Government of the Philippine Islands (plaintiff) sued W. O. Bingham and his sureties, C. D. Squires and A. Bryan, to enforce a bond of $200 securing Bingham’s promise to keep a licensed revolver and 100 rounds of ammunition safe and to surrender them to the Government on demand.
– Bingham’s license to possess the firearm was issued on 22 Aug 1906 under Act 652 and the applicable Executive Orders.
– The Government demanded the return of the arms on 18 Apr 1907; Bingham failed to comply.
– Bingham alleged that the revolver and ammunition were lost when his pearling schooner Tamarao sank in a severe storm on 3 Jan 1907, a loss he could not have prevented.
– The trial court dismissed the action, holding that the loss was due to an unforeseen, unavoidable event and therefore excused performance of the bond.

ISSUE:
Whether the obligor (Bingham) and his sureties are liable under the bond when the subject‑matter of the obligation (the revolver and ammunition) is rendered impossible to surrender through no fault of the obligor, i.e., loss by accident and natural disaster.

RULING:
The Supreme Court affirmed the trial court’s judgment. It held that:

1. The bond was conditional, not absolute; performance was required only “as long as the obligor is able” to keep and deliver the firearms.
2. Impossibility of performance caused by an unforeseen peril (the sinking of the vessel in a storm) excused non‑performance because it was not due to the obligor’s fault or negligence.
3. Under the doctrine applied in Government of the Philippine Islands v. Punzalan and Amechazurra, loss of the secured property without the obligor’s negligence discharges the bond and relieves both the principal and the sureties from liability.

Consequently, the judgment for the defendants was affirmed with costs.

Concurrence: Justices Arellano, Torres, and Mapa.
Dissent: Justices Carson and Willard.