Diamond Builders v. Country Bankers

G.R. No. 171820, 13 December 2007

FACTS:

Rogelio Acidre (sole proprietor of Diamond Builders) was sued by Marceliano Borja for breach of his obligation to construct a residential and commercial building.

Rogelio entered into a compromise agreement with Borja.

Rogelio in order to secure himself entered into surety bond with Country Bankers. Under the Surety Bond, Rogelio and his spouse and other petitioners, in this case, signed an indemnity agreement consenting to their joint and several liabilities to Country Bankers should the surety bond be executed uponRogelio violates the compromise agreement.

A writ of execution was issued against Country Bankers for violation of Rogelio to the compromise agreement.

Country bankers paid the surety bond and ask for reimbursement from petitioners. Petitioners refused to pay. Country bankers filed a complaint about the sum of money against petitioners.

ISSUE:

W/N Country Bankers is entitled to reimbursement?

RULING:

YES.  Art. 1217 of the Civil Code recognizes the right of reimbursement from a co-debtor (principal co-debtor in case of suretyship) in favor of one who paid the surety.

Only payments made after the obligation has prescribed or became illegal shall not entitle a solidary debtor for reimbursement (in accordance with Art. 1218).

 * Case digest by Immanuel Y. Granada,  LLB-1, Andres Bonifacio Law School, SY 2017-2018

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