Philippine Bank… · G.R. 158138

Petitioner: Philippine Bank of Communications
Respondent: Elena Lim
Citation: G.R. No. 158138
Court: Supreme Court
Division: Third Division
Ponente: Panganiban, J.
Decided: April 12, 2005

Summary

Philippine Bank of Communications sued Elena Lim, Ramon Calderon, and Tri-Oro International Trading for P4,014,297.23 deficiency after foreclosure of a loan secured by a promissory note and surety agreement. The promissory note contained an exclusive venue stipulation for Makati City, but the bank filed suit in Manila. The Supreme Court affirmed the Court of Appeals' dismissal, applying the 'complementary-contracts-construed-together' doctrine under Article 1374 of the Civil Code. Since the surety agreement was accessory to and inseparable from the promissory note, the restrictive venue clause in the promissory note applied to both contracts. The Court emphasized that as the bank drafted both contracts of adhesion, it could not disavow its own restrictive stipulation. The case establishes important precedent on venue restrictions in interconnected loan and surety agreements.

Statutes applied

Civil Code, Art. 1374

Related cases

Other Philippine cases on the same provisions and issues.

Natalia S. Mendoza v. Court of Appeals G.R. No. 116216
Spouses Efren N. Rigor v. Consolidated Orix Leasing G.R. No. 136423
Power Sector Assets v. Sem-Calaca Power Corporation G.R. No. 204719
Laureano T. Angeles v. Philippine National Railways (Pnr) G.R. No. 150128
Philippine Fisheries Development Authority v. Court of Appeals G.R. No. 159821
Southeast Asia Shipping Corporation v. Seagull Maritime Corp. G.R. No. 144439
Mondragon International Philippines v. Josephine Blanco G.R. No. 139289
China Banking Corporation v. Court of Appeals G.R. No. 121158

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By the Intellegal Editorial Board · April 12, 2005

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