Placido Lozano v. Ignacio Alvarado Tan Suico

Summary

This 1912 Supreme Court case involved a debt collection action where plaintiff Lozano sued defendant Tan Suico for P740 (P340 loan plus P400 guarantee). The defendant had executed a document securing both obligations, but it was held to be an unregistered and therefore invalid mortgage under Article 1875 of the Civil Code. The Court found the P340 loan had been paid as evidenced by receipt and plaintiff's admission. Regarding the P400 guarantee for Maria Ifurung's debt, the Court held defendant's liability was conditional upon Maria Ifurung's default, which was never proven. The case was dismissed with costs against plaintiff, without prejudice to pursuing Maria Ifurung directly. The decision demonstrates early Philippine jurisprudence on mortgage registration requirements and conditional guarantee obligations under the Civil Code.