This case has been cited 2 times or more.
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2005-11-18 |
CARPIO, J. |
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| In Prudential Bank v. Intermediate Appellate Court,[16] the Court interpreted a substantially identical clause[17] in a trust receipt signed by a corporate officer who bound himself personally liable for the corporation's obligation. The petitioner in that case contended that the stipulation "we jointly and severally agree and undertake" rendered the corporate officer solidarily liable with the corporation. We dismissed this claim and held the corporate officer liable as guarantor only. The Court further ruled that had there been more than one signatories to the trust receipt, the solidary liability would exist between the guarantors. We held:Petitioner [Prudential Bank] insists that by virtue of the clear wording of the xxx clause "x x x we jointly and severally agree and undertake x x x," and the concluding sentence on exhaustion, [respondent] Chi's liability therein is solidary. | |||||
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2003-04-29 |
CARPIO, J. |
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| In Prudential Bank v. Intermediate Appellate Court,[34] the Court discussed the imposition of civil liability for violation of the Trust Receipts Law in this wise:It is clear that if the violation or offense is committed by a corporation, partnership, association or other juridical entities, the penalty shall be imposed upon the directors, officers, employees or other officials or persons responsible for the offense. The penalty referred to is imprisonment, the duration of which would depend on the amount of the fraud as provided for in Article 315 of the Revised Penal Code. The reason for this is obvious: corporation, partnership, association or other juridical entities cannot be put in jail. However, it is these entities which are made liable for the civil liabilities arising from the criminal offense. This is the import of the clause 'without prejudice to the civil liabilities arising from the criminal offense'. (Emphasis supplied) In Prudential Bank, the Court ruled that the person signing the trust receipt for the corporation is not solidarily liable with the entrustee-corporation for the civil liability arising from the criminal offense. He may, however, be personally liable if he bound himself to pay the debt of the corporation under a separate contract of surety or guaranty. | |||||