Maria Seton Donna v. M. Inouye

Summary

Maria Seton Donna sued the estate of deceased guarantor K.S. Ohta to recover on five promissory notes totaling P30,000 executed by principal debtor I. Ihara for real property purchase. The Court of First Instance ruled in favor of plaintiff but ordered execution stayed until the principal debtor's property was exhausted, as required under Civil Code Article 1830. The Supreme Court affirmed, rejecting appellant's arguments that the judgment was indefinite or improperly formed. The Court clarified that despite solidarity language in the notes, Ohta's written designation as 'guarantor' created subsidiary rather than joint liability. The only modification was limiting interest on collection expenses to run from the judgment date rather than claim presentation date, recognizing that attorney fee liability arises only when services are actually rendered.