The Lawyers Cooperative Publishing Company v. Fernando Periquet

Summary

This case involves enforcement of a surety bond where the Lawyers Cooperative Publishing Company sued Fernando Periquet and Luzon Surety Co., Inc. to recover on a P500 bond that guaranteed return of law books in separate litigation. When the Municipal Court ordered return of the books and this judgment became final but remained unsatisfied after execution, the publishing company sued the bondsmen. The courts at all levels ruled in favor of the plaintiff. The Supreme Court En Banc affirmed, holding that since the original judgment became final and unsatisfied, and defendants showed no legal causes under Civil Code articles 1847-1852 to extinguish their guarantee, they remained liable under their bond for P500 jointly and severally, plus legal interest and costs. The case establishes that sureties remain liable until the underlying obligation is satisfied or legally extinguished.