Republic Planters Bank Vs CA
Republic Planters Bank Vs CA
FACTS:
Shozo Yamaguchi (President/Chief Operating Officer) and Fermin Canlas
(Treasurer) by virtue of Board Resolution of Worldwide Garment
Manufacturing, Inc were authorized to apply for credit facilities with the
Republic Planters Bank in the forms of export advances and letters of
credit/trust receipts accommodations.
Shozo Yamaguchi did not file an Amended Answer and failed to appear at
the scheduled pre-trial conference despite due notice
ISSUE: W/N Fermin Canlas is solidarily liable with the other defendants,
namely Pinch Manufacturing Corporation and Shozo Yamaguchi on the 9
promissory notes because they are negotiable and ruled by the Negotiable
Instruments Law
HELD:
CA absolving Fermin Canlas is REVERSED and SET ASIDE. Judgement is
hereby rendered declaring private respondent Fermin Canlas jointly and
severally liable on all 9 promissory notes with the following sums and at
16% interest per annum
Under the Negotiable instruments Law, a persons who write their names on
the face of promissory notes are makers and are liable as such.
It was made clearer and certain, without reason for ambiguity, by the
presence of the phrase "joint and several" as describing the unconditional
promise to pay to the order of Republic Planters Bank Severally and jointly
or solidarily liable.
A change in the corporate name does not make a new corporation, and
whether affected by special act or under a general law, has no effect on the
identity of the corporation, or on its property, rights, or liabilities
The corporation continues, as before, responsible in its new name for all
debts or other liabilities which it had previously contracted or incurred.
As a general rule, officers or directors under the old corporate name bear
no personal liability for acts done or contracts entered into by officers of the
corporation, if duly authorized. Inasmuch as such officers acted in their
capacity as agent of the old corporation and the change of name meant
only the continuation of the old juridical entity, the corporation bearing the
same name is still bound by the acts of its agents if authorized by the
Board.
Where the agent signs his name but nowhere in the instrument has he
disclosed the fact that he is acting in a representative capacity or the name
of the third party for whom he might have acted as agent, the agent is
personally liable to take holder of the instrument and cannot be permitted to
prove that he was merely acting as agent of another and parol or extrinsic
evidence is not admissible to avoid the agent's personal liability.
An incomplete instrument which has been delivered to the borrower for his
signature is governed by Section 14 of the Negotiable Instruments Law: