Country Bankers vs Lagman

8/13/2019 Country Bankers vs Lagman

1/21

COUNTRY BANKERSINSURANCECORPORATION,

Petitioner,

-versus -

ANTONIO LAGMAN,

Respondent.

G.R. No. 165487

Present:

CARPIO, J ., Chairperson, LEONARDO DE CASTRO, * VILLARAMA, R., **

PERE!, and SERENO, JJ .

Pro"#$%ated:

#$& '(, ) ''

+ ----------------------------------------------------------------------------------------+

D E C I S I O N

PEREZ, J .:


2/21

This is a petition or re ie on certiorari #nder R#$e /0 o the '112 R#$es o

Ci i$ Pro3ed#re, assai$in% the De3ision ' 4'5 and Reso$#tion ) 4)5 o the Co#rt o

Appea$s dated )' #ne ) / and )/ Septe"6er ) /, respe3ti e$&.

These are the #ndisp#ted a3ts.

Ne$son Santos 7Santos8 app$ied or a $i3ense ith the Nationa$ 9ood

A#thorit& 7N9A8 to en%a%e in the 6#siness o storin% not "ore than ( , sa3 so palay a$#ed at P0,)0 , . in his areho#se at Barangay Ma$a3a"pa,

Ca"i$in%, Tar$a3. ;nder A3t No. (onded ?areho#se A3t, as

a"ended, ( 4(5 the appro a$ or said $i3ense as 3onditioned #pon postin% o a 3ash

6ond, a 6ond se3#red 6& rea$ estate, or a 6ond si%ned 6& a d#$& a#thori@ed 6ondin%

3o"pan&, the a"o#nt o hi3h sha$$ 6e i+ed 6& the N9A Ad"inistrator at not $ess

than thirt&-three and one third per3ent 7(( ' (B8 o the "ar et a$#e o the

"a+i"#" #antit& o ri3e to 6e re3ei ed.

' * Per Spe3ia$ Order No. ' .** Per Spe3ia$ Order No. ' /(.4'5 Penned 6& Asso3iate #sti3e Ma%dan%a$ M. De Leon ith Asso3iate #sti3es Ro6erto A.

>arrios and Mariano C. De$ Casti$$o 7no S#pre"e Co#rt Asso3iate #sti3e8 3on3#rrin%. Rollo, pp. )1-( .

) 4)5 Id. at (27a8-(


3/21

A33ordin%$&, Co#ntr& >an ers Ins#ran3e Corporation 7Co#ntr& >an ers8

iss#ed ?areho#se >ond No. (( / / 4/5 or P',2/1,an Lee Li"8, Rhose"e$ita Re%#ine 7Re%#ine8 and

La%"an, as 3o-si%nors. The $atter 6o#nd the"se$ es oint$& and se era$$& $ia6$e to

Co#ntr& >an ers or an& da"a%es, pre #di3e, $osses, 3osts, pa&"ents, ad an3es

and e+penses o hate er ind and nat#re, in3$#din% attorne&Fs ees and $e%a$

3osts, hi3h it "a& s#stain as a 3onse #en3e o the said 6ondG to rei"6#rse

Co#ntr& >an ers o hate er a"o#nt it "a& pa& or 3a#se to 6e paid or 6e3o"e

$ia6$e to pa& there#nderG and to pa& interest at the rate o ')B per ann#" 3o"p#ted

and 3o"po#nded "onth$&, as e$$ as to pa& attorne&Fs ees o ) B o the a"o#nt

d#e it. 2425

Santos then se3#red a $oan #sin% his areho#se re3eipts as 3o$$atera$. TC. Re3ords, pp. )'/-)'1 and ))0.


4/21

3o ered 6& the areho#se re3eipts ere no $on%er o#nd in the 6onded areho#se. 1

415 >& irt#e o the s#ret& 6onds, Co#ntr& >an ers as 3o"pe$$ed to pa&

P',' ,20 .(2. ' 4' 5

Conse #ent$&, Co#ntr& >an ers i$ed a 3o"p$aint or a s#" o "one&

do3 eted as Ci i$ Case No. 10-2( /< 6e ore the Re%iona$ Tria$ Co#rt 7RTC8 o

Mani$a. In his Ans er, La%"an a$$e%ed that the '1onds ere a$id on$& or '

&ear ro" the date o their iss#an3e, as e iden3ed 6& re3eiptsG that the 6onds ere

ne er rene ed and re i ed 6& pa&"ent o pre"i#"sG that on 0 No e"6er '11 ,Co#ntr& >an ers iss#ed ?areho#se >ond No. (0'0 7'11 >ond8 hi3h as a$so

a$id or one &ear and that no Inde"nit& A%ree"ent as e+e3#ted or the p#rposeG

and that the '11 >ond s#persedes, 3an3e$s, and renders no or3e and e e3t the

'1onds. '' 4''5

The 6ond prin3ipa$s, Santos and >an Lee Li", ere not ser ed ith

s#""ons 6e3a#se the& 3o#$d no $on%er 6e o#nd. ') 4')5 The 3ase as e ent#a$$&

dis"issed a%ainst the" itho#t pre #di3e. '( 4'(5 The other 3o-si%nor, Re%#ine, as

de3$ared in de a#$t or ai$#re to i$e her ans er. '/ 4'/5

1 415 Id. at ))(.' 4' 5 The N9A, a3tin% in 6eha$ o H#edan3or, pro3eeded a%ainst the s#ret& 6onds

iss#ed 6& Co#ntr& >an ers hi3h, in t#rn, partia$$& paid P',' ,20 .(2 to H#edan3or and$e t a 6a$an3e o P',)((,2/1.0 . Id. at )((-)(/.

'' 4''5 Ans er ith A ir"ati e and Spe3ia$ De enses and Co#nter3$ai". Rollo, pp. '-(.

') 4')5 Re3ords, p. )).'( 4'(5 Order dated '< Septe"6er '110. Id. at 0'.'/ 4'/5 Id. at /2.


5/21

On )' Septe"6er '11an ers the a"o#nt o

P),/ ,/11.an ers Ass#ran3e Corporation, thea"o#nt o P),/ ,/11.


6/21

The tria$ 3o#rt e"phasi@ed that or the ai$#re o La%"an to 3o"p$& ith his

o6$i%ation #nder the Inde"nit& A%ree"ents, he is $i e ise $ia6$e or da"a%es as a

3onse #en3e o the 6rea3h.

La%"an i$ed an appea$ to the Co#rt o Appea$s, do3 eted as CA =.R. CV

No. '212. e insisted that the $i eti"e o the '1onds, as e$$ as the

3orrespondin% Inde"nit& A%ree"ents as on$& ') "onths. A33ordin% to La%"an,

the '11 >ond as not p$eaded in the 3o"p$aint 6e3a#se it as not 3o ered 6& an

Inde"nit& A%ree"ent and it s#perseded the t o prior 6onds.'1

4'15

On )' #ne ) /, the Co#rt o Appea$s rendered the assai$ed De3ision

re ersin% and settin% aside the De3ision o the RTC and orderin% the dis"issa$ o

the 3o"p$aint i$ed a%ainst La%"an. ) 4) 5

The appe$$ate 3o#rt he$d that the '11 >ond s#perseded the '1onds.

The appe$$ate 3o#rt o6ser ed that the '11 >ond 3o ers ((.(B o the "ar et a$#e

o the palay , there6& "ani estin% the intention o the parties to "a e the $atter

6ond "ore 3o"prehensi e. La%"an as a$so e+onerated 6& the appe$$ate 3o#rt

ro" $ia6i$it& 6e3a#se he as not a si%nator& to the a$$e%ed Inde"nit& A%ree"ent

o 0 No e"6er '11 3o erin% the '11 >ond. The appe$$ate 3o#rt re e3ted the

ar%#"ent o Co#ntr& >an ers that the '1rie or Antonio La%"an. CA rollo , pp. )'-)/.) 4) 5 Rollo , pp. )1-( .


7/21

reason there or, that the re3eipts iss#ed or the 6onds indi3ate that the& ere

e e3ti e or on$& one-&ear.

Co#ntr& >an ers so#%ht re3onsideration hi3h as denied in a Reso$#tion

dated )/ Septe"6er ) /. )' 4)'5

E+pe3ted$&, Co#ntr& >an ers i$ed the instant petition attri6#tin% t o 7)8

errors to the Co#rt o Appea$s, to it:

A.

T E ONORA>LE CO;RT O9 APPEALS SERIO;SLJ ERRED INDISRE=ARDIN= T E EKPRESS PROVISIONS O9 SECTION '22 O9 T EINS;RANCE CODE ? EN IT ELD T AT T E S;> ECT S;RETJ>ONDS ?ERE S;PERSEDED >J A S;>SEH;ENT >OND

NOT?IT STANDIN= T E NON-CANCELLATION T EREO9 >J T E>OND O>LI=EE.

>.

T E ONORA>LE CO;RT O9 APPEALS SERIO;SLJ ERRED INOLDIN= T AT RECEIPTS 9OR T E PAJMENT O9 PREMI;MS PREVAILOVER T E EKPRESS PROVISION O9 T E S;RETJ >OND T AT 9IKEST E TERM T EREO9. )) 4))5

Co#ntr& >an ers "aintains that 6& the e+press ter"s o the '1onds,

the& sha$$ re"ain in #$$ or3e #nti$ 3an3e$$ed 6& the Ad"inistrator o the N9A.

As 3ontin#in% 6onds, Co#ntr& >an ers a ers that Se3tion '22 o the Ins#ran3e

Code app$ies, in that the 6ond "a& on$& 6e 3an3e$$ed 6& the o6$i%ee, 6& the

Ins#ran3e Co""issioner or 6& a 3o"petent 3o#rt.

)' 4)'5 Id. at (27a8-(


8/21

Co#ntr& >an ers #estions the e+isten3e o a third 6ond, the '11 >ond,

hi3h a$$e%ed$& 3an3e$$ed the '1onds on the o$$o in% %ro#nds: 9irst, La%"an

ai$ed to prod#3e the ori%ina$ o the '11 >ond and no 6asis has 6een $aid or the

presentation o se3ondar& e iden3eG Se3ond, the iss#an3e o the '11 >ond as

not appro ed and pro3essed 6& Co#ntr& >an ersG Third, the N9A as 6ond o6$i%ee

as not in possession o the '11 >ond. Co#ntr& >an ers stresses that the

3an3e$$ation o the '1onds re #ires the parti3ipation o the 6ond o6$i%ee.

Ergo , the 6onds re"ain s#6sistin% #nti$ 3an3e$$ed 6& the 6ond o6$i%ee. Co#ntr&

>an ers #rther assert that La%"an a$so ai$ed to pro e that the N9A a33epted the

'11 >ond in rep$a3e"ent o the '1onds.

Co#ntr& >an ers notes that the re3eipts iss#ed or the '1onds are "ere

e iden3e o pre"i#" pa&"ents and sho#$d not 6e re$ied on to deter"ine the period

o e e3ti it& o the 6onds. Co#ntr& >an ers e+p$ains that the re3eipts on$&

represent the transa3tions 6et een the 6ond prin3ipa$ and the s#ret&, and does not

in o$ e the N9A as 6ond o6$i%ee.

Co#ntr& >an ers 3a$$s this Co#rtFs attention to the in3ontesta6i$it& 3$a#se

3ontained in the Inde"nit& A%ree"ents hi3h prohi6its La%"an ro" #estionin%his $ia6i$it& therein.


9/21

In his Co""ent, La%"an raises the iss#e o no ation 6& assertin% that the

'1onds ere s#perseded 6& the '11 >ond, hi3h did not in3$#de La%"an as

part&. There ore, La%"an ar%#es, Co#ntr& >an ers has no 3a#se o a3tion a%ainst

hi". La%"an a$so reiterates that 6e3a#se o no ation, the '1


10/21

3ontra3t o s#ret&ship or 6ondin% sha$$ 6e a$id and 6indin% #n$ess and #nti$ the pre"i#" there or has 6een paid, ex e!" #$e%e "$e o&'()ee $*+ * e!"e "$e&o- , (- #$( $ *+e "$e &o- &e o e+ /*'( *- e-0o% e*&'e (%%e+!e "(/e o0#$e"$e% o% -o" "$e !%e ( $*+ &ee- !*( &2 "$e o&'()o% "o "$e + %e"2 :

Provided , That i the 3ontra3t o s#ret&ship or 6ond is not a33epted 6&, or i$ed

ith the o6$i%ee, the s#ret& sha$$ 3o$$e3t on$& reasona6$e a"o#nt, not e+3eedin%i t& per 3ent#" o the pre"i#" d#e thereon as ser i3e ee p$#s the 3ost o sta"psor other ta+es i"posed or the iss#an3e o the 3ontra3t or 6ond: Provided,however, That i the non-a33eptan3e o the 6ond 6e d#e to the a#$t or ne%$i%en3eo the s#ret&, no s#3h ser i3e ee, sta"ps or ta+es sha$$ 6e 3o$$e3ted. 7E"phasiss#pp$ied8

The '1onds ha e identi3a$ pro isions and the& state in er& 3$ear ter"s

the e e3ti it& o these 6onds, viz :

NO?, T ERE9ORE, i the a6o e-6o#nded Prin3ipa$ sha$$ e$$ and tr#$&de$i er to the depositors PALAJ re3ei ed 6& hi" or STORA=E at an& ti"e thatde"and there ore is "ade, or sha$$ pa& the "ar et a$#e there ore in 3ase he is#na6$e to ret#rn the sa"e, then this o6$i%ation sha$$ 6e n#$$ and oidG other ise itsha$$ re"ain in #$$ or3e and e e3t and "a& 6e en or3ed in the "anner pro ided

6& said A3t No. (


11/21

In 3ase o a 3ontin#in% 6ond, the o6$i%or sha$$ pa& the s#6se #ent ann#a$ pre"i#" as it a$$s d#e #nti$ the 3ontra3t o s#ret&ship is 3an3e$$ed 6& the o6$i%eeor 6& the Co""issioner or 6& a 3o#rt o 3o"petent #risdi3tion, as the 3ase "a&

6e.

>& $a and 6& the spe3i i3 3ontra3t in o$ ed in this 3ase, the e e3ti it& o

the 6ond re #ired or the o6tention o a $i3ense to en%a%e in the 6#siness o

re3ei in% ri3e or stora%e is deter"ined not a$one 6& the pa&"ent o pre"i#"s 6#t

prin3ipa$$& 6& the Ad"inistrator o the N9A. 9ro" 6e%innin% to end, the

Ad"inistratorFs 6rie is the ena6$in% or disa6$in% do3#"ent.

The 3$ear i"port o these pro isions is that the s#ret& 6onds in #estion

3annot 6e #ni$atera$$& 3an3e$$ed 6& La%"an. The sa"e 3on3$#sion as rea3hed 6&

the tria$ 3o#rt and e #ote:

As there appears no re3ord o 3an3e$$ation o the ?areho#se >onds No.(( / and No. )(00 either 6& the ad"inistrator o the N9A or 6& the Ins#ran3e

Co""issioner or 6& the Co#rt, the ?areho#se >onds are a$id and 6indin% and3annot 6e #ni$atera$$& 3an3e$$ed 6& de endant La%"an as %enera$ a%ent o the

p$ainti .)/ 4)/5

?hi$e the tria$ 3o#rt did not dire3t$& r#$e on the e+isten3e and a$idit& o the

'11 >ond, it #phe$d the '1onds as a$id and 6indin%, hi3h 3o#$d not 6e

#ni$atera$$& 3an3e$$ed 6& La%"an. The Co#rt o Appea$s, on the other hand,

a3 no $ed%ed the '11 >ond as ha in% 3an3e$$ed the t o pre io#s 6onds 6&

)/ 4)/5 Id. at )


12/21


13/21

A photo3op&, 6ein% a "ere se3ondar& e iden3e, is not ad"issi6$e #n$ess it

is sho n that the ori%ina$ is #na ai$a6$e. )2 4)25 Se3tion 0, R#$e '( o the R#$es o

Co#rt states:

SEC.0 hen original docu+ent is unavaila le . ?hen the ori%ina$do3#"ent has 6een $ost or destro&ed, or 3annot 6e prod#3ed in 3o#rt, the o eror,#pon proo o its e+e3#tion or e+isten3e and the 3a#se o its #na ai$a6i$it& itho#t

6ad aith on his part, "a& pro e its 3ontents 6& a 3op&, or 6& a re3ita$ o its3ontents in so"e a#thenti3 do3#"ent, or 6& the testi"on& o itnesses in theorder stated.

>e ore a part& is a$$o ed to add#3e se3ondar& e iden3e to pro e the

3ontents o the ori%ina$, the o eror "#st pro e the o$$o in%: 7'8 the e+isten3e or

d#e e+e3#tion o the ori%ina$G 7)8 the $oss and destr#3tion o the ori%ina$ or the

reason or its non-prod#3tion in 3o#rtG and 7(8 on the part o the o eror, the

a6sen3e o 6ad aith to hi3h the #na ai$a6i$it& o the ori%ina$ 3an 6e attri6#ted.

The 3orre3t order o proo is as o$$o s: e+isten3e, e+e3#tion, $oss, and 3ontents. )ond, there 3an

6e no no ation to spea o . No ation is the e+tin%#ish"ent o an o6$i%ation 6& the

s#6stit#tion or 3han%e o the o6$i%ation 6& a s#6se #ent one hi3h e+tin%#ishes or

"odi ies the irst, either 6& 3han%in% the o6 e3t or prin3ipa$ 3onditions, or 6&

s#6stit#tin% another in p$a3e o the de6tor, or 6& s#6ro%atin% a third person in the

ri%hts o the 3reditor. 9or no ation to ta e p$a3e, the o$$o in% re #isites "#st3on3#r: '8 There "#st 6e a pre io#s a$id o6$i%ationG )8 The parties 3on3erned

() 4()5 Rollo , p. /(.


16/21

"#st a%ree to a ne 3ontra3tG (8 The o$d 3ontra3t "#st 6e e+tin%#ishedG and /8

There "#st 6e a a$id ne 3ontra3t. (( 4((5

In this 3ase, on$& the irst e$e"ent o no ation e+ists. Indeed, there is a

pre io#s a$id o6$i%ation, i*e., the '1onds. There is ho e er neither a a$id

ne 3ontra3t nor a 3$ear a%ree"ent 6et een the parties to a ne 3ontra3t sin3e the

er& e+isten3e o the '11 >ond has 6een rendered d#6io#s. ?itho#t the ne

3ontra3t, the o$d 3ontra3t is not e+tin%#ished.

I"p$ied no ation ne3essitates a ne o6$i%ation ith hi3h the o$d is in tota$

in3o"pati6i$it& s#3h that the o$d o6$i%ation is 3o"p$ete$& s#perseded 6& the ne

one. (/ 4(/5 H#ite o6 io#s$&, neither 3an there 6e i"p$ied no ation. In this 3ase,

there is no ne o6$i%ation.

The $ia6i$it& o La%"an is e+pressed in Inde"nit& A%ree"ents e+e3#ted in

3onsideration o the '1onds hi3h e ha e 3onsidered as 3ontin#in%

3ontra3ts. ;nder 6oth Inde"nit& A%ree"ents, La%"an, as 3o-si%nor, to%ether ith

(( 4((5 Adriatico !onsortiu+, Inc* v* LandBan" o/ the Philippines , =.R. No. '


17/21

Santos, >an Lee Li" and Re%#ine, 6o#nd the"se$ es oint$& and se era$$& to

Co#ntr& >an ers to inde"ni & it or an& da"a%e or $oss s#stained on the a33o#nt

o the e+e3#tion o the 6ond, a"on% others. The pertinent identi3a$ stip#$ations o

the Inde"nit& A%ree"ents state:

INDEMNITJ: To inde"ni & and "a e %ood to the COMPANJ oint$&and se era$$&, an& da"a%es, pre #di3e, $oss, 3osts, pa&"ents ad an3es ande+penses o hate er ind and nat#re, in3$#din% attorne&Fs ees and $e%a$ 3osts,

hi3h the COMPANJ "a&, at an& ti"e, s#stain or in3#r, as e$$ as to rei"6#rseto said COMPANJ a$$ s#"s and a"o#nts o "one& hi3h the COMPANJ or itsrepresentati es sha$$ or "a& pa& or 3a#se to 6e paid or 6e3o"e $ia6$e to pa&, ona33o#nt o or arisin% ro" the e+e3#tion o the a6o e-"entioned >OND or an&e+tension, rene a$, a$teration or s#6stit#tion thereo "ade at the instan3e o the#ndersi%ned or an&one o the". (0 4(05

Moreo er, the Inde"nit& A%ree"ents a$so 3ontained identi3a$

In3ontesta6i$it& C$a#ses hi3h pro ide:

INCONTESTA>ILITJ O9 PAJMENTS MADE >J T E COMPANJ:

An& pa&"ent or dis6#rse"ent "ade 6& the COMPANJ on a33o#nt o thea6o e-"entioned >ond, its rene a$s, e+tensions, a$terations or s#6stit#tions eitherin the 6e$ie that the COMPANJ as o6$i%ated to "a e s#3h pa&"ent or in the

6e$ie that said pa&"ent as ne3essar& or e+pedient in order to a oid %reater$osses or o6$i%ations or hi3h the COMPANJ "i%ht 6e $ia6$e 6& irt#e o theter"s o the a6o e-"entioned >ond, its rene a$s, e+tensions, a$terations, ors#6stit#tions, sha$$ 6e ina$ and sha$$ not 6e disp#ted 6& the #ndersi%ned, hohere6& oint$& and se era$$& 6ind the"se$ es to inde"ni & 4Co#ntr& >an ers5 oan& and a$$ s#3h pa&"ents, as stated in the pre3edin% 3$a#ses.

In 3ase the COMPANJ sha$$ ha e paid4,5 sett$ed or 3o"pro"ised an&

$ia6i$it&, $oss, 3osts, da"a%es, attorne&Fs ees, e+penses, 3$ai"s4,5 de"ands, s#its,or #d%"ents as a6o e-stated, arisin% o#t o or in 3onne3tion ith said 6ond, anite"i@ed state"ent thereo , si%ned 6& an o i3er o the COMPANJ and othere iden3e to sho said pa&"ent, sett$e"ent or 3o"pro"ise, sha$$ 6e pri"a a3iee iden3e o said pa&"ent, sett$e"ent or 3o"pro"ise, as e$$ as the $ia6i$it& o the

(0 4(05 Re3ords, pp. '20-'22.


18/21

#ndersi%ned in an& and a$$ s#its and 3$ai"s a%ainst the #ndersi%ned arisin% o#t osaid 6ond or this 6ond app$i3ation. ( 4( 5

La%"an is 6o#nd 6& these Inde"nit& A%ree"ents. Pa&"ents "ade 6&Co#ntr& >an ers 6& irt#e o the '1onds %a e rise to La%"anFs o6$i%ation to

rei"6#rse it #nder the Inde"nit& A%ree"ents. La%"an, 6ein% a so$idar& de6tor, is

$ia6$e or the entire o6$i%ation.

ERE3ORE , the petition is GRANTED . The assai$ed De3ision and

Reso$#tion o the Co#rt o Appea$s in CA-=.R. CV No. '212 are SET ASIDE

and the De3ision dated )' Septe"6er '11< o the RTC is here6& REINSTATED .

SO ORDERED.

OSE PORTUGAL PEREZ

Asso3iate #sti3e

( 4( 5 Id.


19/21

?E CONC;R:

ANTONIO T. CARPIOAsso3iate #sti3e

Chairperson

TERESITA . LEONARDO DE CASTRO MARTIN S. 9ILLARAMA, R. Asso3iate #sti3e Asso3iate #sti3e

MARIA LOURDES P. A. SERENO

Asso3iate #sti3e


20/21

A T T E S T A T I O N

I attest that the 3on3$#sions in the a6o e De3ision had 6een rea3hed in3ons#$tation 6e ore the 3ase as assi%ned to the riter o the opinion o theCo#rtFs Di ision.

ANTONIO T. CARPIO

Asso3iate #sti3e

Chairperson

C E R T I 3 I C A T I O N

P#rs#ant to Se3tion '(, Arti3$e VIII o the Constit#tion and the Di isionChairpersonFs Attestation, I 3erti & that the 3on3$#sions in the a6o e De3ision had

6een rea3hed in 3ons#$tation 6e ore the 3ase as assi%ned to the riter o the

opinion o the Co#rtFs Di ision.

RENATO C. CORONA


21/21

Chie #sti3e

Documents

Country Bankers vs Lagman