BAUTISTA v.

AUTO PLUS TRADERS

G.R. NO. 166405 | AUG. 6, 2008 | J. QUISUMBING

FACTS:

Petitioner Claude P. Bautista, in his capacity as President and Presiding Officer of Cruiser Bus Lines and
Transport Corporation, purchase various spare parts from Respondent Auto Plus Traders, Inc. Bautista
issued two postdated checks to cover his purchases. The first check was to the amount of P151,200 while
the second check was in the amount of P97,500. Upon presentment, both checks were dishonored which
prompter Auto Plus Traders to file a complaint against Bautista for violation of Batas Pambansa Blg. 22.

The MTCC dismissed the complaint but both parties appealed such to the RTC. The RTC ruled in favor of
Auto Plus Traders and ordered Bautista to pay the amount of the checks issued with interest. This was
affirmed by the Court of Appeals.

ISSUE:

Whether or not the Petitioner Bautista should be held liable to pay the amounts of the dishonored checks.

HELD:

No, Bautista should not pay for the dishonored checks because the corporation has a distinct and separate
personality from its officers. The purchases were made by the company and the checks were only signed
by Bautista in his capacity as the companys president.

Bautista also cannot be held as an accommodation party. In order for one to be considered as an
accommodation party, the following requisites must concur:

1. He must be a party to the instrument;

2. He must not receive value therefor;
3. He must sign for the purpose of lending his name or credit to some other person.

Although the first two requisites are present, the last one is lacking. There was no agreement that Bautista
would guaranty the payment of the dishonored checks, nor could it be shown that he lent his name or credit
to the company.