Case Digest: Luneta Motor Co vs Federico Abad, 67 Phil 23

Luneta Motor Co vs Federico Abad, 67 Phil 23

Subject: Obligations and Contracts

Facts

Plaintiff sought recovery of the sum of P2,674.05 with accrued stipulated interest and attorney's fees for balance due on four promissory notes executed by the defendant on March 12, 1931. The complaint sued for a writ of attachment which was issued. Defendant, in his answer, petitioned, for reasons therein stated, that the attachment be lifted, and to that effect a counterbond was tendered by the terms of which the sureties "jointly and severally bind themselves in the sum of P2,600, under the condition that in case the plaintiff recovered judgment in the action the defendant will on demand redeliver the attached property so released to the other court to be applied to the payment of the judgment or in default thereof that the defendant and sureties will on demand pay the plaintiff the full value of the property released." The lower court granted this petition and issued an order for the dissolution of the writ. Thereafter, defendant died; whereupon, his attorney moved for the dismissal of the case. The trial court acceded to this motion, and plaintiff's motion for reconsideration thereof having been denied, the instant appeal was taken.

Issue

WON Federico Abad’s sureties still bound.

Ruling

No, Federico Abad’s sureties are no longer binding.

Under the law (Art 1183), impossible conditions, those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof which is not affected by the impossible or unlawful condition shall be valid. The condition not to do an impossible thing shall be considered as not having been agreed upon.

In this case, the obligation of the sureties, under the counterbond, is subject to the condition that when the plaintiff recovered judgment, they shall deliver the property so released to the officer of the court for the payment of said judgment or in default thereof, pay its full value to the plaintiff. This condition has become a legal impossibility, for no judgment can be recovered by the plaintiff in the case which should be dismissed. Therefore, the obligation dependent upon this condition must be deemed extinguished.