Republic of the Philippines

SUPREME COURT
Manila
EN BANC
G.R. No. L-!"## $ece%be& !' (!#
STAN$AR$ O)L CO. O* NE+ ,OR-' plaintiff-appellant'
.s.
C/O S)ONG' ET AL.' 0efen0ants-appellees.
------------------------------------
G.R. No. L-!1"2 $ece%be& !' (!#
ONG GUAN CAN' plaintiff-appellant'
.s.
STAN$AR$ O)L CO. O* NE+ ,OR-' 0efen0ant-appellee.
Po3ell an0 /ill fo& appellant in case No. !"##' an0 fo& appellee in case No. !1"2.
Pa0illa' T&enas an0 Ma4alona fo& appellees in case No. !"## an0 fo& appellant in case
No. !1"2.

A5ANCE6A' C. 7.8
These t3o case' !"## an0 !1"2 3e&e 9ointl: p&osecute0 in the cou&t belo3 an0 onl:
one 9u04%ent 3as &en0e&e0 in both.
)n case !"##' the plaintiff' Stan0a&0 Oil Co. of Ne3 ,o&;' sue0 the 0efen0ants' Cho
Sion4 an0 On4 Guan Can' fo& the a%ount of P'(!1.<' 3ith inte&est' plus P1"= as
atto&ne:>s fees. The t&ial cou&t o&0e&e0 the 0efen0ants Cho Sion4 an0 On4 Guan Can to
pa: the plaintiff the a%ount of P?<.<?' 3ith le4al inte&est f&o% the 0ate 3hen the
co%plaint 3as file0 until full pa:%ent' plus P== b: 3a: of atto&ne:>s fees@ an0
0efen0ant Cho Sion4 to pa: the plaintiff the su% of P'(2.!?' 3ith le4al inte&est the&eon
f&o% the 0ate 3hen the co%plaint 3as file0 until full: pai0' plus P"== as atto&ne:>s
fees.(a3phi(.net
On 7anua&: 1' (!?' the plaintiff an0 0efen0ant Cho Sion4 ente&e0 into a cont&act
3he&eb: Cho Sion4 obli4ate0 hi%self to sell as a4ent' plaintiff>s pet&oleu% p&o0ucts. /e
4ua&antee0 the fulfil%ent of his obli4ation b: 4i.in4 a pe&sonal bon0 in the su% of
P2'===' subsc&ibe0 b: On4 Guan Can' an0 3ith the su% of P('=== in cash 3hich he
0eli.e&e0 to the plaintiff' 3ith the &i4ht to appl: it to the pa:%ent of an: a%ount in 3hich
he %i4ht beco%e in0ebte0. Cho Sion4 also boun0 hi%self to pa: such atto&ne:>s fees'
costs' an0 othe& eApenses' as %i4ht be occasione0 the plaintiff shoul0 it be un0e& the
necessit: of filin4 suit fo& the &eco.e&: of an: a%ount to 3hich it %i4ht be entitle0
pu&suant to this cont&act in a su% eBual to (= pe& cent of the a%ount o3e0.
B: .i&tue of this cont&act' Cho Sion4 &ecei.e0 f&o% the plaintiff pet&oleu% to the .alue of
P(<'(2?.1!' an0 %a0e 4oo0 to sai0 plaintiff the total a%ount of P(<'=1.22' thus lea.in4
a balance of P?<.<? in fa.o& of the plaintiff an0 a4ainst the 0efen0ant Cho Sion4.
But it appea&s that on the sa%e 0a: C7anua&: 1' (!?D' 3hen the plaintiff an0 0efen0ant
Cho Sion4 ente&e0 into the cont&act to a4enc: an0 3hen the othe& 0efen0ant' On4 Guan
Can subsc&ibe0 the P2'=== bon0' the 0efen0ant Cho Sion4 si4ne0 an inst&u%ent in fa.o&
of the plaintiff in 3hich he assu%e0 &esponsibilit: fo& all the accounts that %i4ht be
o3in4 to the plaintiff b: the fo&%e& a4ent' Ton4 -uan' an0 fo& all 4oo0s the latte& %i4ht
ha.e in his possession at the ti%e 3hen the a4enc: 3as t&ansfe&&e0 to Cho Sion4.
Acco&0in4 to the plaintiff>s e.i0ence' the a%ount then o3e0 b: Ton4 -uan 3as
P2'(2.!?. A00in4 P?<.<? to this a%ount' 3e ha.e the total 0ebt of P2'(!1.<. $e0uctin4
f&o% this the P('=== in cash 3hich Cho Sion4 0eposite0 3ith the plaintiff to be applie0
upon his liabilities' it lea.es a 0ebit balance of P'(!1.< 3hich is the a%ount clai%e0 in
the co%plaint.
Acco&0in4 to the abo.e' eAclu0in4 the 0ebt of the fo&%e& a4ent Ton4 -uan' the onl:
balance a4ainst the 0efen0ant Cho Sion4 on his o3n cont&act of a4enc: 3ith the plaintiff
is the su% of P?<.<?. Since the plaintiff has the P('=== belon4in4 to the 0efen0ant Cho
Sion4' 3hich %a: be applie0 to the pa:%ent of the su%s o3e0 b: the latte&' it follo3s
that' as to Cho Sion4>s a4enc:' he has incu&&e0 no liabili:' fo& out of the P('=== 0eposite0
3ith the plaintiff he still has P!2"."< in his fa.o&. ConseBuentl:' On4 Guan Can' as a
su&et: fo& those 0ebts 3hich Cho Sion4 %i4ht incu& upon the cont&act of a4enc:' 0oes not
ans3e& fo& an:thin4' the p&incipal not ha.in4 incu&&e0 an: liabilit:. )t is plain un0e& the
te&%s of the bon0 si4ne0 b: On4 Guan Can that he 0i0 not ans3e& fo& Cho Sion4' sa.e
fo& the latte&>s act b: .i&tue of the cont&act of a4enc:. /e cannot be hel0 liable fo& the 0ebt
of a4ent Ton4 -uan 3hich Cho Sion4 assu%e0 b: .i&tue of anothe& cont&act of 3hich
sai0 On4 Guan Can 3as not e.en a3a&e. A cont&act of su&et:ship is to be st&ictl:
inte&p&ete0 an0 is not to be eAten0e0 be:on0 its te&%s.
The a%ount of P1"= fo& atto&ne:>s fees an0 cou&t costs' 3hich Cho Sion4 boun0 hi%self
to pa: to the plaintiff' 3as a4&ee0 upon in the cont&act of a4enc:' an0 as Cho Sion4 0i0
not incu& an: liabilit: 3ith &espect to this cont&act he cannot be o&0e&e0 to pa: this su%.
)n the inst&u%ent b: 3hich Cho Sion4 assu%e0 the 0ebt of the fo&%e& a4ent' Ton4 -uan'
no stipulation 3as %a0e as to atto&ne:>s fees an0 as it is on this cont&act that Cho Sion4
faile0 to pe&fo&% his obli4aion it is also clea& that he is not liable fo& an: a%ount as
atto&ne:>s fees.
)n .ie3 of the fo&e4oin4' the appeale0 9u04%ent is %o0ifie0 as to case No. !"## an0 the
0efen0ant Cho Sion4 is o&0e&e0 to pa: the plaintiff the a%ount of P'(!1.< onl:' the
othe& 0efen0ant On4 Guan Can bein4 &elie.e0 f&o% all liabilit:.
)n case No. !1"2 On4 Guan Can clai%s the su% of P("'=== f&o% the Stan0a&0 Oil Co.'
of Ne3 ,o&;. )n the fo&%e& case No. !"##' the Stan0a&0 Oil Co.' of Ne3 ,o&; secu&e0 a
p&eli%ina&: attach%et a4ainst On4 Guan Can' 3hich 3as le.ie0 on so%e of his lan0s.
This attach%ent consiste0 si%pl: in the annotation the&eof in the t&ansfe& ce&tificate of
tile ente&e0 on No.e%be& (1' (!1' 3hich attach%ent 3as 0issol.e0 an0 the annotation
cancelle0 on the (!th of the sa%e %onth. The attach%ent' the&efo&e' onl: laste0 t3o 0a:s.
The a%ount of P("'=== 3hich On4 Guan Can clai%s of the Stan0a&0 Oil Co.' of Ne3
,o&; is the a%ount of 0a%a4es he alle4es 3e&e' cause0 hi% b: this attach%ent.
The t&ial cou&t fin0in4 that no 0a%a4e p&o.en to ha.e been suffe&e0 b: On4 Guan Can on
account of sai0 attach%ent' absol.e0 the Stan0a&0 Oil Co.' of Ne3 ,o&; f&o% this clai%
in case No. !1"2.
+ithout consi0e&in4 the othe& Buestion &aise0 in this case' an0 acceptin4 the t&ial cou&t>s
conclusions that no 0a%a4e 3as occasione0 On4 Guan Can b: sai0 attach%ent 3hich
onl: laste0 t3o 0a:s' the 9u04%ent appeale0 f&o% is affi&%e0' 3ith costs a4ainst the
appellant. So o&0e&e0.
7ohnson' St&eet' Malcol%' 5illa%o&' Ost&an0' Ro%ual0eE an0 5illa-Real' 77.' concu&.