PH Credit Corp V CA

GR No. 109648
November 22, 2001

FACTS:
PH Credit Corp. filed a case against Pacific Lloyd Corp et al. for a sum of
money. The trial court ruled in favor of PH Credit Corp and the defendants
were ordered to pay the former. However, it was not clear whether the
obligation to pay was joint or solidary because the dispositive portion of the
decision merely stated that the defendants were liable. Consequently, the
personal and real properties of one of the defendants were levied and sold at
public auction wherein PH Credit Corp. was the highest bidder. Later, the trial
court declared the auction as null and void because there was no legal basis
for levying and selling one of the defendants real and personal properties in
order to satisfy the whole obligation since it presumed the obligation to be
joint. PH Credit Corp contends that respondent Judge erred in applying the
presumption of a joint obligation in the face of the conclusion of fact and law
contained in the decision showing that the obligation is solidary. The CA
affirmed the ruling of the trial court declaring that the liability of Farrales was
merely joint and not solidary.

ISSUE:
Whether or not the obligation was solidary

HELD:
The obligation was not solidary. The liability is joint. The well-entrenched rule
is that solidary obligations cannot be inferred lightly. They must be positively
and clearly expressed. Under Article 1207 of the Civil Code, there is a
solidary liability only when the obligation expressly so states, or when the
law or the nature of the obligation requires solidarity. In the dispositive
portion of the decision of the trial court, the word solidary neither appears
nor can it be inferred therefrom. The fallo merely stated that the following
respondents were liable. Under the circumstances, the liability is joint
because under Article 1208 of the Civil Code, if from the law, or the nature
or the wording of the obligations, it does not appear to be solidary, the credit
or debt shall be presumed to be divided into as many equal shares as there
are creditors or debtors.