SOLIDBANK  CORPORATION  V.  MINDANAO  FERROALLOY CORPORATION

GR 153535, JULY 28, 2005

 

FACTS:

Mindanao  Ferroalloy  corporation  is  the  fruit  of  a  joint  venture  agreement between a Filipino corporation and Korean Corporation.  In its operations, its  liabilities  ballooned  over  its  assets  that  it  had  to  secure  loans  from petitioner Solidbank.  The loans were later consolidated and restructured, evidenced by a promissory note.  The promissory note was signed by Cu and Hong, both officers of the corporation.  The corporation, through the same officers  also  executed  a  deed  of  assignment.    Thereafter, the  corporation stopped  its  operations  and  the  loan  was  left  unpaid.    The  bank  was prompted  to  file  a  complaint  against  the  corporation,  and  with  it, impleading  the  officers  who  signed  the  agreement  and  promissory  notes.  The trial court held in favor of the bank but didn't adjudge liability of the officers.  Both the trial court and CA held that there was no solidary liability on the part of the officers impleaded by the bank.   
 

HELD:

Though Hong and Cu signed above the “maker/borrower”  and the printed name of the corporation, without the word “by” preceding their signatures, the fact that they signed in their personal capacities is negated by the facts that  name  and  address  of  the  corporation  also  appeared  on  the  space
provided  for  in  the  “maker/borrower”  and  their  signatures  only  appeared once when it should be twice if indeed it was in their personal capacities.  Further,  they  didn't  sign  on  the  portion  allocated  for  the  co-maker,  and there was also indicia of it being signed as authorized representatives.