3. Buenaventura v Metrobank

GR No. 219071, August 24, 2016 Teresita Teresita Buenaventura (Petitioner) v Metropolitan Bank and Trust Company (Respondent) First Division Ponente: Bersamin, . Nature of Action: !om"#aint $or re%over& o$ sum o$ mone&. FACTS

'eresita Buenaventura e(e%ute) t*o Promissor& Notes "a&a+#e to etro"o#itan Ban- an) 'rust !om"an& *it interest an) %re)it eva#uation an) su"ervision $ee. Bot PNs "rovi)e $or "ena#t& o$ 1/  "er annum on te un"ai) "rin%i"a# $rom )ate o$ )e$au#t unti# $u## "a&ment o$ te o+#igation. o+#igation. Buenaventura )e$au#te) an) )es"ite )eman)s, se $ai#e) to "a&. !onseuent#&, !onseuent#&, a""e##ee $i#e) an a%tion against a""e##ant $or re%over& o$ sai) amounts, interest, "ena#t& an) attorne&s $ees +e$ore te Regiona# 'ria# !ourt. A""e##ant on te oter an) averre) tat se re%eive) $rom er ne"e*, Rene 3m"eria#, tree "ost)ate) %e%-s )ra*n against a""e##ee 'a+a%o Bran%5 as "artia# "a&ments $or te "ur%ase o$ er "ro"erties. 'at se re)is%ounte) te su+e%t %e%-s *it a""e##ee 'imog Bran%5, $or *i% se *as reuire) to e(e%ute te PNs to se%ure "a&ment tereo$. 'at se is a mere guarantor an) %annot +e %om"e##e) to "a& un#ess an) unti# a""e##ee sa## ave e(auste) a## te "ro"erties o$ 3m"eria#. 'e R'! ru#e) in $avor o$  etro+an- an) or)ere) Buenaventura to "a& te +an-. n a""ea#, te !ourt o$ A""ea#s a$$irme) te R'!8s )e%ision *it mo)i$i%ation as to te "a&ment o$ interest. Petitioner insists tat te "romissor& notes *ere meant as guaranties to se%ure "a&ment o$ te %e%-s +& te issuer, Rene 3m"eria#, en%e, er  #ia+i#it& *as tat o$ a guarantor, an) *ou#) ta-e e$$e%t on#& u"on e(austion o$ a## "ro"erties an) a$ter  resort to a## #ega# reme)ies against 3m"eria#

!SS"#

eter or not "etitioner is on#& #ia+#e as a guarantor.

R"$!N%

 No, sin%e te "romissor& notes *ere entire#& si#ent a+out te su""ose) guarant& in $avor o$  3m"eri 3m"eria#. a#. A %ontra %ontra%t %t o$ guaran guarantee tee %annot %annot +e "resum "resume), e), +ut +ut must must +e e("res e("resss an) in *ritin *riting g to +e en$or%ea+#e. 'e insisten%e o$ te "etitioner is +ere$t o$ merit. 'e !A ree%te) tis insisten%e, e("oun)ing as $o##o*s: A guarant& is not "resume) it must +e e("resse) Art. 20;;, Ne* !ivi# !o)e5. 'e PNs "rovi)e, in %#ear #anguage, tat a""e##ant is "rimari#& #ia+#e tereun)er. n te oter an), sai) PNs )o not state tat 3m"eria#, *o is not even "riv& tereto, is te one  "rimari#& #ia+#e an) tat a""e##ant is mere#& a guarantor. Parenteti%a##&, te )is%#osure statement 2711 is =se%ure) +&  "ost)ate) %e%-s=. 3n oter *or)s, it )oes not a""ear tat te PNs *ere e(e%ute) as guarant& $or te "a&ment o$ te su+e%t %e%-s. ((( A guarantor ma& +in) imse#$ $or #ess, +ut not $or more tan te "rin%i"a# )e+tor,  +ot as regar)s te amount an) te onerous nature o$ te %on)itions Art. 20;4, i).5. !urious#&, te $a%e amounts o$ te PNs tota#ing P.>,000,000.005 are more tan tose o$  te su+e%t %e%-s tota#ing 1?2,/97,000.005. An) un#i-e te su+e%t %e%-s, te PNs  "rovi)e $or interest, !