- Petitioner
- The Bank of the Philippine Islands
- Respondent
- May Mccoy
- Citation
- G.R. No. 30111
- Court
- Supreme Court En Banc
- Division
- En Banc
- Ponente
- Street, J.
- Decided
- February 23, 1929
Summary
Bank of the Philippine Islands sued the estate of H.B. McCoy and six co-guarantors for losses on a guaranteed corporate debt. After executrix May McCoy settled the bank's claim for P12,000, she sought contribution from the co-guarantors. The Supreme Court affirmed that all seven parties were jointly and severally liable under their August 1922 agreement to purchase foreclosed property from the bank, which they failed to honor. When the bank resold the property at a loss, the guarantors became liable for the deficiency. The Court held that the executrix, having paid the settlement, was subrogated to the bank's rights and entitled to proportional contribution from co-guarantors under Article 1145 of the Civil Code, with each liable for their proportional share of any insolvent co-guarantor's obligation.