Unformatted text preview: iprocal current
account between both firms, without opposition or protest on the part of Oria Hermanos & Co. In the
absence of a written agreement defendant’s procedure raises the presumption that such were the
stipulations verbally made between the interested parties, and the verbal agreement was constantly
maintained and confirmed without protest or objection whatever on the part of the managers of Oria
Hermanos & Co. ABSOLVED PNB v. Manila Surety, 122 Phil. 106, 14 SCRA 776 (1965) GAUDIEL
An agent is required to act with the care of a good father of a family and becomes liable for the
damages which the principal may suffer through his nonperformance.
The Philippine National Bank had opened a letter of credit and advanced thereon $120,000.00 to
Edgington Oil Refinery for 8,000 tons of hot asphalt. Of this amount, 2,000 tons worth P279, 000.00 were
released and delivered to Adams & Taguba Corporation (known as ATACO) under a trust receipt guaranteed
by Manila Surety & Fidelity Co. up to the amount of P75,000.00.. To pay for the asphalt, ATACO
constituted the Bank its assignee and attorneyinfact to receive and collect from the Bureau of Public
Works the amount aforesaid out of funds payable to the assignor under Purchase Order No. 71947.
PNB was negligent in its duty under the power of attorney to collect sums due to debtor from the
latter’s debtor, thereby allowing such funds to be exhausted by other creditors.
The Court ordered defendants, Adams & Taguba Corporation and Manila Surety & Fidelity Co., Inc.,
to pay plaintiff, Philippines National Bank, the sum of P174,462.34 as of February 24, 1956, minus the
amount of P8,000 which defendant, Manila Surety Co., Inc. paid from March, 1956 to October, 1956 with
interest at the rate of 5% per annum from February 25, 1956, until fully paid provided that the total amount
that should be paid by defendant Manila Surety Co., Inc., on account of this case shall not exceed
P75,000.00, and to pay the costs;
Court of Appeals rendered an adverse decision and modified the jud...
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- Fall '14
- gutierrez hermanos, B.A. Finance Corporation