Ang Tiong vs Ting 22 SCRA 713, 22 Feb 1968, G.R. No. L-26767

On August 15, 1960 Lorenzo Ting issued Philippine Bank of Communications check K-81618, for the sum of P4,000, payable to “cash or bearer”. With Felipe Ang’s signature (indorsement in blank) at the back thereof, the instrument was received by the plaintiff Ang Tiong who thereafter presented it to the drawee bank for payment. The bank dishonored it. The plaintiff then made written demands on both Lorenzo Ting and Felipe Ang that they make good the amount represented by the check. These demands went unheeded; so he filed in the municipal court of Manila an action for collection of the sum of P4,000, plus P500 attorney’s fees. On March 6, 1962 the municipal court adjudged for the plaintiff against the two defendants. Only Felipe Ang appealed to the Court of First Instance of Manila (civil case 50018), which rendered judgment on July 31, 1962, amended by an order dated August 9, 1962, directing him to pay to the plaintiff “the sum of P4,000, with interest at the legal rate from the date of the filing of the complaint, a further sum of P400 as attorney’s fees, and costs.” Felipe Ang then elevated the case to the Court of Appeals, which certified it to this Court because the issues raised are purely of law.

Whether the lower court err in adjudging FELIPE ANG as general indorser.

No, nothing in the check in question indicates that the appellant is not a general indorser within the purview of section 63 of the Negotiable Instruments Law which makes “a person placing his signature upon an instrument otherwise than as maker, drawer or acceptor” a general indorser, — “unless he clearly indicates plaintiff appropriate words his intention to be bound in some other capacity,” which he did not do. And section 66 ordains that “every indorser who indorses without qualification, warrants to all subsequent holders in due course” (a) that the instrument is genuine and in all respects what it purports to be; (b) that he has a good title to it; (c) that all prior parties have capacity to contract; and (d) that the instrument is at the time of his indorsement valid and subsisting. In addition, “he engages that on due presentment, it shall be accepted or paid, or both, as the case may be, and that if it be dishonored, he will pay the amount thereof to the holder.”


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