Fermin Canlas and Shozo Yamaguchi signed nine promissory notes as President/COO and Treasurer respectively of their company to obtain credit from Republic Planters Bank. The notes stated that "I/we jointly and severally promise to pay". Canlas signed his name on the notes with "and in his personal capacity" typed below. The Court ruled that Canlas is solidarily liable along with Yamaguchi on each note because under the negotiable instruments law, people who write their names on promissory notes are makers and liable as such, and notes that begin with "I" or "We" promise to pay make multiple signers solidarily liable.
Fermin Canlas and Shozo Yamaguchi signed nine promissory notes as President/COO and Treasurer respectively of their company to obtain credit from Republic Planters Bank. The notes stated that "I/we jointly and severally promise to pay". Canlas signed his name on the notes with "and in his personal capacity" typed below. The Court ruled that Canlas is solidarily liable along with Yamaguchi on each note because under the negotiable instruments law, people who write their names on promissory notes are makers and liable as such, and notes that begin with "I" or "We" promise to pay make multiple signers solidarily liable.
Fermin Canlas and Shozo Yamaguchi signed nine promissory notes as President/COO and Treasurer respectively of their company to obtain credit from Republic Planters Bank. The notes stated that "I/we jointly and severally promise to pay". Canlas signed his name on the notes with "and in his personal capacity" typed below. The Court ruled that Canlas is solidarily liable along with Yamaguchi on each note because under the negotiable instruments law, people who write their names on promissory notes are makers and liable as such, and notes that begin with "I" or "We" promise to pay make multiple signers solidarily liable.
Fermin Canlas and Shozo Yamaguchi signed nine promissory notes as President/COO and Treasurer respectively of their company to obtain credit from Republic Planters Bank. The notes stated that "I/we jointly and severally promise to pay". Canlas signed his name on the notes with "and in his personal capacity" typed below. The Court ruled that Canlas is solidarily liable along with Yamaguchi on each note because under the negotiable instruments law, people who write their names on promissory notes are makers and liable as such, and notes that begin with "I" or "We" promise to pay make multiple signers solidarily liable.
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Republic Planters Bank vs Court of Appeals
G.R. No. 93073, December 27, 1992
FACTS: Defendants Shozo Yamaguchi and Fermin Canlas were President/ Chief Operating Officer and Treasurer, respectively, of Worldwide Garment Manufacturing, Inc. By virtue of a board resolution, the defendants were authorized to apply for credit facilities with the petitioner Republic Planters Bank in the forms of export advances and letters of credit/ trust receipts accommodations. Petitioner bank issued nine promissory notes, each of which were uniformly worded and stated: “… I/we jointly and severally promise to pay to the order of the Republic Planters Bank…” On the right bottom margin of the promissory notes appeared the signature of the defendants above their printed names with the phrase “and (in) his personal capacity” typewritten below. ISSUE: Is defendant Fermin Canlas solidarily liable with Shozo Yamaguchi on each of the nine promissory notes? RULING: Yes, he is solidarily liable on each of the promissory notes bearing his signature for the following reasons: (a) Under the negotiable instruments law, persons who write their names on the face of promissory notes are makers and are liable as such. By signing the notes, the maker promise to pay to the order of the payee or any holder according to the tenor thereof. (b) Where an instrument containing the words “I promise to pay” is signed by two or more persons they are deemed to be jointly and severally liable thereon. An instrument which begins with “I”, “We” or “Either of us” promise to pay, when signed by two or more persons, makes them solidarily liable.