- Petitioner
- Allied Banking Corporation
- Respondent
- Jesus S. Yujuico (Deceased)
- Citation
- G.R. No. 163116
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Bersamin, J.
- Decided
- June 29, 2015
Summary
Allied Banking Corporation sued to collect P6,020,184.90 from deceased Jesus S. Yujuico under continuing guaranty agreements he executed in 1966-1967 to secure corporate debts of Yujuico Logging & Trading Corporation. The Supreme Court distinguished between guaranty and suretyship, clarifying that Jesus was a surety solidarily liable with the principal debtor. However, the Court found that Jesus's suretyship obligations were superseded when Clarencio Yujuico executed a new continuing guaranty in 1974 covering a P5M credit line. Since the promissory notes sued upon were executed in 1975-1976 after the new suretyship arrangement, Jesus was no longer liable. The Court also noted evidence of a 1973 revocation letter that would have limited Jesus's liability to pre-existing obligations. The petition was dismissed, absolving Jesus's estate from liability.