09 JAPRL Development Corp. vs.

Security Bank Corporation

G.R. No. 190107. June 6, 2011
Ponente: Carpio-Morales, J.

FACTS
1. In 199
1996, JA JAPR !e"elop#ent Corporation applie$ %or an$ &as 'rante$ a (re$it
%a(ili
%a(ilit)
t) *ett
*etter
er o% Cre$i
Cre$it+
t+rus
rustt Re(eipt
e(eipt in te a#ount
a#ount o% Pp /0,000/0,000.00.00 &it
&it
e(urit) an Corporation *C.
2. In 2001
2001,, i#s
i#sonon an$
an$ Arol
Arolla
la$o
$o,, JAPR
JAPR Cai
Cairr#an
#an an$
an$ Pres
Presi$
i$en
ent,
t, respe
espe(t(ti"
i"el
el),
),
e3e(ute$ a Continuin' uret)sip A'ree#ent *CA in %a"our o% C, &erein
te) 'uarantee$ o4li'ations un$er te (re$it %a(ilit).
5. In 2002
2002,, on JAPRJAPRs
s prop
propos
osal
al,, C
C e3te
e3ten$n$e$
e$ te
te peri
perio$
o$ o% sett
settle
le#e
#entnt o% isis
o4li'ations.
. In 2005
2005,, JAPR
JAPRs
s 8nan
8nan(i(ial
al a$"i
a$"iseser,
r, MRM
MRM ManaMana'e'e#e
#entnt In(o
In(orp
rpor
orat
ate$
e$ *MRM
*MRM, ,
(on"ene$ JAPRs (re$itors,
(re$itors, C in(lu$e$, %or te purpose o% restru(turin'
restru(turin' JAPRs
e3istin' loan o4li'ations.
/. C soon $is(o"ere$
$is(o"ere$ #aterial
#aterial in(onsisten(ies
in(onsisten(ies in te 8nan(ial state#ents 'i"en 4)
MRM "is--
"is--"is
"is tose
tose su4#it
su4#itte$te$ 4) JAPR
JAPR &en
&en it applie
applie$$ %or a (re$i
(re$itt %a(il
%a(ilit)
it),,
$ra&in' C to (on(lu$e tat JAPR (o##itte$ #irepresentation. us, C sent
a %or#al
%or#al letter
letter o% $e#an$
$e#an$ to JAPR JAPR,, i#son
i#son an$ ArollArolla$
a$oo %or te i##e$i
i##e$iat atee
pa)#ent o% Pp 5,926,021.1 representin' JAPRs outstan$in' o4li'ations.
6. Petitioners
Petitioners %aile$
%aile$ to (o#pl)
(o#pl) &it te $e#an$,
$e#an$, en(e C 8le$ a (o#plaint %or %or su#
o% #one) &it appli(ation %or issuan(e o% &rit o% preli#inar) atta(#ent 4e%ore
RC Maati a'ainst JAPR, i#son an$ Arolla$o.
7. !urin'
!urin' pen$en()
pen$en() o% te (ase, (ase, C #ani%es
#ani%este$te$ in (ourt
(ourt tat it re(ei"e$
re(ei"e$ a (op)
(op) o% a
ta) r$er issue$ 4) RC ;ue<on Cit) &erein JAPRs petition %or rea4ilitation
&as lo$'e$.
=. RC Maati
Maati at on(e or$ere$
or$ere$ in open (ourt ar(i"iar(i"in'
n' Cs (o#pla
(o#plaintint %or su# o% 
#one) until $isposition 4) RC ;ue<on Cit) o% JAPRs petition %or rea4ilitation.
>en RC Maati re$u(e$ to &ritin' its open (ourt or$er, o&e"er, it instea$
$e(lare$
$e(lare$ $is#issal o% Cs (o#plaint.
9. C 8le$ a #otion %or re(onsi$eration,
re(onsi$eration, an$ #o"e$ to (lari%) (lari%) te Maati RC
RC r$er,
positin' tat te suspension o% te pro(ee$in's soul$ onl) 4e &it respe(t to
 JAPR 4ut notnot &it respe(t
respe(t to i#son an$ Arolla$o.
Arolla$o.
10. ?o&e"e
?o&e"er, r, RC MaaMaati ti #ainta
#aintaine ine$$ its or$er
or$er ar(
ar(i"i
i"in'
n' (o#pla
(o#plaint
int a'ains
a'ainstt all
petitioners.
11. Mean&
Mean&ile ile,, te propo
propose$
se$ rea4
rea4ili
ilitat
tation
ion plan
plan 4e%or
4e%oree RC ;ue<on
;ue<on Cit)Cit) &as
$isappro"e$.
12. n #otion, RC RC Maati tus reinstate$ Cs (o#plaint.
15. ater,
ater, petitioner
petitioners s 8le$ a #ani%esta
#ani%estationtion in%or#in'
in%or#in' tat a ta) r$err$er &as issue$,
issue$,
tis ti#e 4) RC Cala#4a, in a ne& petition %or rea4ilitation 8le$ 4) JAPR.
A'ain, RC Maati ar(i"e$ Cs (o#plaint a'ainst petitioners.
1. C #o"e$ %or re(onsi$erations
re(onsi$erations a"errin'
a"errin' tat its (o#plaint soul$ not a"e 4een
ar(i"e$ &it respe(t to sureties i#son an$ Arolla$o.

!SS"# Can C pursue its (lai# a'ainst i#son an$ Arolla$o, as sureties, $espite
te pen$en() o% JAPRs petition %or rea4ilitation@

R"L!$%  B. C (an pursue its (lai# a'ainst i#son an$ Arolla$o
R"L!$% Arolla$o $espite te
pen$en() o% JAPRs petition %or rea4ilitation. or, 4) te CA in %a"or o% C, it is
te o4li'ation o% te sureties,
sureties, &o are terein state$ to 4e soli$ar) &it JAPR, to see
to it tat JAPRs $e4t is %ull) pai$.

n a trial (ourts suspension o% pro(ee$in's a'ainst a suret) o% a (orporation in te

pro(ess o% rea4ilitation,
rea4ilitation, Banco de OroEPCI, Inc. v. JAPRL Development Corporation
ol$s tat a (re$itor (an $e#an$ pa)#ent %ro# te suret) soli&arily lia'le &it te
(orporation seein' rea4ilitation, it 4ein' not in(lu$e$ in te list o% sta)e$ (lai#s.

In$ee$, e(tion 6*4 o% te Interi# Rules o% Pro(e$ure o% Corporate Rea4ilitation

pro"i$es tat a sta) or$er $oes not appl) to sureties &o are solidarily liable &it te
$e4tor. In i#son an$ Arolla$os (ase, teir soli$ar) lia4ilit) &it JAPR is
$o(u#ente$.

i#son an$ Arolla$o, as sureties, &ose lia4ilit) is soli$ar) (annot, tere%ore, (lai#
prote(tion %ro# te rea4ilitation (ourt, te) not 4ein' te 8nan(iall) $istresse$
(orporation tat #a) 4e restore$, not to #ention tat te rea4ilitation (ourt as no
 Duris$i(tion o"er te#.