Jose M.A Arroyo v. Florentino Hilario Jungsay

Summary

This 1916 Supreme Court case involved the liability of sureties on a guardian's bond after the guardian absconded with his ward's funds. The new guardian sued the former guardian and his bondsmen for P6,000. The bondsmen appealed, seeking credit for allegedly attached property worth P4,400. The Supreme Court affirmed the lower court judgment, ruling that sureties cannot claim benefit of excusion (right to have principal debtor's property exhausted first) under Articles 1832-1834 of the Civil Code because the property they pointed out was insufficient, not readily salable, and was possessed by third parties under claim of ownership. The case established that proper procedure for determining guardian liability requires a civil action where sureties can be heard, emphasizing that surety obligations cannot be discharged through encumbered or contested property.