09 JAPRL Development Corp vs. Security Bank Corporation

09 JAPRL Development Corp. vs. Security Bank Corporation G.R. No. 190107. June 6, 2011 Ponente: Carpio-Morales, J. FACTS 1. In 199 1996, JA JAPR !e"elop#ent Corporation applie$ %or an$ &as 'rante$ a (re$it %a(ili %a(ilit) t) *ett *etter er o% Cre$i Cre$it+ t+rus rustt Re(eipt e(eipt in te a#ount a#ount o% Pp /0,000 /0,000.00 .00 &it &it e(urit) an Corporation *C. 2. In 2001 2001,, i#s i#son on an$ an$ Arol Arolla la$o $o,, JAPR JAPR  Cai Cairr#an #an an$ an$ Pres Presi$ i$en ent, t, respe espe(t (ti" i"el el), ), e3e(ute$ a Continuin' uret)sip A'ree#ent *CA in %a"our o% C, &erein te) 'uarantee$ o4li'ations un$er te (re$it %a(ilit). 5. In 2002 2002,, on JAPR JAPR s s prop propos osal al,, C C e3te e3ten$ n$e$ e$ te te peri perio$ o$ o% sett settle le#e #ent nt o% is is o4li'ations. . In 2005 2005,, JAPR JAPR s s 8nan 8nan(i (ial al a$"i a$"ise ser, r, MRM MRM Mana Mana'e 'e#e #ent nt In(o In(orp rpor orat ate$ e$ *MRM *MRM, , (on"ene$ JAPRs (re$itors, (re$itors, C in(lu$e$, %or te purpose o% restru(turin' restru(turin' JAPRs e3istin' loan o4li'ations. /. C soon $is(o"ere$ $is(o"ere$ #aterial #aterial in(onsisten(ies in(onsisten(ies in te 8nan(ial state#ents 'i"en 4) MRM "is-"is--"is "is tose tose su4#it su4#itte$ te$ 4) JAPR JAPR &en &en it applie applie$ $ %or a (re$i (re$itt %a(il %a(ilit) it),, $ra&in' C to (on(lu$e tat JAPR (o##itte$ #irepresentation. us, C sent a %or#al %or#al letter letter o% $e#an$ $e#an$ to JAPR JAPR, , i#son i#son an$ Aroll Arolla$ a$o o %or te i##e$i i##e$iat ate e pa)#ent o% Pp 5,926,021.1 representin' JAPRs outstan$in' o4li'ations. 6. Petitioners Petitioners %aile$ %aile$ to (o#pl) (o#pl) &it te $e#an$, $e#an$, en(e C 8le$ a (o#plaint %or %or su# o% #one) &it appli(ation %or issuan(e o% &rit o% preli#inar) atta(#ent 4e%ore RC Maati a'ainst JAPR, i#son an$ Arolla$o. 7. !urin' !urin' pen$en() pen$en() o% te (ase, (ase, C #ani%es #ani%este$ te$ in (ourt (ourt tat it re(ei"e$ re(ei"e$ a (op) (op) o% a ta) r$er issue$ 4) RC ;ue