Quirino Gonzales Logging Concessionaire vs.

The Court of Appeals

G.R. No. 126568. April 30, 2003.

Facts:
On October 15, 1962, petitioner Quirino Gonzales Logging Concessionaire
(QGLC), through its general manager Quirino Gonzales, applied for credit
accommodation with Republic Bank, later known as, Republic Planters Bank (the
Bank). The obligation was secured by a real estate mortgage of parcels of land. QGLC
executed a promissory note, which they later on defaulted. The Bank foreclosed the
property and was subsequently owned by the same bank. The latter then filed a
complaint for a sum of money in regards to the unpaid notes.

The notes were payable 30 days after date and provided for the solidary
liability in their non-payment at maturity. Petitioners deny having received the value
of the promissory notes.

The trial court favored the petitioners, but the CA reversed the decision.
Issue:
W/N the promissory notes were valid
Held:
Yes, the promissory notes were valid. The petitioners claim that they signed
the notes in blank but did not receive the value of the notes. They also admit the
genuineness and due execution of the notes. The promissory notes were negotiable
as they met the requirements of Section 1 of the Negotiable Instruments Law. The
notes are prima facie deemed to have been issued for consideration.

In any case, it is no defense that the promissory notes were signed in blank as
Section 14 of the Negotiable Instruments Law concedes the prima facie authority of
the person in possession of negotiable instruments, such as the notes herein, to fill
in the blanks.