Jose Lino Luna v. Esteban Arcenas · G.R. 7676

Petitioner: Jose Lino Luna
Respondent: Esteban Arcenas
Citation: G.R. No. 7676
Court: Supreme Court
Division: First Division
Ponente: Carson, J.
Decided: March 3, 1916

Summary

Luna sued Arcenas for P12,300 interest on a bond guarantee. Arcenas had signed documents in 1903 promising to pay 6% annual interest, claiming to act for himself and as attorney-in-fact for his coheirs. The trial court awarded the full amount based on a misinterpretation of Civil Code Article 1144, which applies only to joint and several obligations. The Supreme Court reversed, holding that the nature of Arcenas' liability depends on whether he had authority to bind his coheirs - a factual question not properly determined at trial. If authorized, he would owe only his proportionate share as a joint obligor; if unauthorized, he would be solely liable for the full amount. The case was remanded for a new trial to determine this crucial factual issue.

Statutes applied

Civil Code, Art. 1144

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By the Intellegal Editorial Board · March 3, 1916

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