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STRONGHOLD INSURANCE COMPANY v. REPUBLIC-ASAHI GLASS CORPORATION

This case has been cited 3 times or more.

	GR No. 204689 2015-01-21	STRONGHOLD INSURANCE COMPANY v. SPS. RUNE LEONEN, J.
It is settled that the surety's solidary obligation for the performance of the principal debtor's obligation is indirect and merely secondary.[73] Nevertheless, the surety's liability to the "creditor or promisee of the principal is said to be direct, primary and absolute; in other words, he is directly and equally bound with the principal."[74]
	GR No. 180898 2012-04-18	PHILIPPINE CHARTER INSURANCE CORPORATION v. PETROLEUM DISTRIBUTORS MENDOZA, J.
A contract of suretyship is an agreement whereby a party, called the surety, guarantees the performance by another party, called the principal or obligor, of an obligation or undertaking in favor of another party, called the obligee.[40] Although the contract of a surety is secondary only to a valid principal obligation, the surety becomes liable for the debt or duty of another although it possesses no direct or personal interest over the obligations nor does it receive any benefit therefrom.[41] This was explained in the case of Stronghold Insurance Company, Inc. v. Republic-Asahi Glass Corporation,[42] where it was written: The surety's obligation is not an original and direct one for the performance of his own act, but merely accessory or collateral to the obligation contracted by the principal. Nevertheless, although the contract of a surety is in essence secondary only to a valid principal obligation, his liability to the creditor or promisee of the principal is said to be direct, primary and absolute; in other words, he is directly and equally bound with the principal.
	GR No. 187116 2010-10-18	ASSET BUILDERS CORPORATION v. STRONGHOLD INSURANCE COMPANY MENDOZA, J.
Stronghold Insurance Company, Inc. v. Republic-Asahi Glass Corporation,[19] reiterating the ruling in Garcia v. Court of Appeals,[20] expounds on the nature of the surety's liability: X x x. The surety's obligation is not an original and direct one for the performance of his own act, but merely accessory or collateral to the obligation contracted by the principal. Nevertheless, although the contract of a surety is in essence secondary only to a valid principal obligation, his liability to the creditor or promisee of the principal is said to be direct, primary and absolute; in other words, he is directly and equally bound with the principal.