PBCOM v.

Aruego 10) The RTC then rendered judgment sentencing the defendant to pay
to the plaintiff the total amount of his obligation under the twenty-two
FACTS:
(22) causes of action.
1) On December 1, 1959, the Philippine Bank of Commerce instituted
ISSUE: Whether Jose Argueo signing the instrument as an agent may
against Jose M. Aruego Civil Case for the recovery of the total sum of
be held personally liable thereto.
about P35, 000.00
RULING: YES. The SC held that pursuant to Section 20 of the
2) The sum sought to be recovered represents the cost of the printing
Negotiable Instruments Law which provides that "Where the
of "World Current Events," a periodical published by the defendant.
instrument contains or a person adds to his signature words indicating
3) To facilitate the payment of the printing the defendant obtained a that he signs for or on behalf of a principal or in a representative
credit accommodation from theplaintiff. capacity, he is not liable on the instrument if he was duly authorized;
but the mere addition of words describing him as an agent or as filing
4)Thus, for every printing of the "World Current Events," the printer, a representative character, without disclosing his principal, does not
Encal Press and Photo Engraving, collected the cost of printing by exempt him from personal liability.” An inspection of the drafts
drawing a draft against the plaintiff, said draft being sent later to the accepted by the defendant shows that nowhere has he disclosed that
defendant for acceptance. he was signing as a representative of the Philippine Education
5) As an added security for the payment of the amounts advanced to Foundation Company. He merely signed as follows: "JOSE ARUEGO
Encal Press and Photo-Engraving, the plaintiff bank also required (Acceptor) (SGD) JOSE ARGUEGO For failure to disclose his
defendant Aruego to execute a trust receipt in favor of said bank principal, Aruego is personally liable for the drafts he accepted.
wherein said defendant undertook to hold in trust for plaintiff the
periodicals and to sell the same with the promise to turn over to the
plaintiff the proceeds of the sale of said publication to answer for the
payment of all obligations arising from the draft.
6) The complaint was dismissed in an order dated December 22, 1959.
7) Upon plaintiff’s motion for reconsideration, the RTC set aside its
order dismissing the complaint.
8) The defendant answered that he signed the document upon which
the plaintiff sues in his capacity as President of the Philippine
Education Foundation; that his liability is only secondary; and that he
believed that he was signing only as an accommodation party.
9) On the other hand, the trial court declared the defendant in default.