Pacific Banking Corporation v. Hon. Intermediate Appellate Court

Summary

Pacific Banking Corporation sued Celia Regala and her husband Roberto Regala Jr. for unpaid credit card debt of P92,803.98. Roberto had signed a 'Guarantor's Undertaking' for his wife's Pacificard. The Intermediate Appellate Court limited Roberto's liability to the original P2,000 monthly limit and one-year validity period, but the Supreme Court reversed this decision. The Court held that Roberto's undertaking was a contract of surety making him solidarily liable for the full debt. The undertaking expressly covered 'any and all indebtedness' and contained a waiver clause preventing discharge due to changes in terms. The decision clarifies the distinction between guaranty and suretyship contracts and the extent of surety liability under express contractual terms.