- Petitioner
- Security Bank
- Respondent
- Mar Tierra
- Citation
- G.R. No. 143382
- Court
- Supreme Court
- Decided
- November 29, 2006
Whether the conjugal partnership can be held liable for an indemnity agreement entered into by the husband to accommodate a third party
Summary
Security Bank sued Mar Tierra Corporation and individual guarantors Martinez, Lacson and Lopa for unpaid balance on a P14M credit line. Mar Tierra borrowed P9,952,000 but defaulted after partial payments. The bank attached the conjugal property of Martinez spouses. The RTC held Martinez liable but lifted the attachment on conjugal property, finding the obligation did not benefit the conjugal partnership. The CA affirmed. The Supreme Court denied Security Bank's petition, ruling that under Article 161(1) of the Civil Code, conjugal partnerships are only liable for debts contracted by the husband for their benefit. Since Martinez acted merely as surety for a third party, no presumption exists that the conjugal partnership benefited. The bank failed to prove such benefit, thus the conjugal property remained protected from the surety obligation.