Petitioner
Benjamin Bitanga
Respondent
Pyramid Construction Engineering Corporation
Citation
G.R. No. 173526
Court
Supreme Court
Decided
August 28, 2008

Summary

This case involves enforcement of a contract of guaranty arising from a construction dispute. Pyramid Construction filed suit against Benjamin Bitanga and his wife Marilyn after Macrogen Realty (where Benjamin was President) defaulted on a P6,000,000.00 compromise agreement. Benjamin had guaranteed Macrogen's obligations. The RTC granted summary judgment against both spouses, but the Court of Appeals modified this to exclude Marilyn as she was not a party to the guaranty. The Supreme Court affirmed, ruling that summary judgment was proper because Benjamin failed to point out available debtor properties when demanded, thus forfeiting his right to the benefit of excussion under Article 2060 of the Civil Code. The case establishes that guarantors must comply with specific procedural requirements to invoke the benefit of excussion, and that service of demand letters at a guarantor's office address is sufficient under the Rules of Court.

Statutes applied

By Intellegal Editorial Board · August 28, 2008

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