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.