Palmares v. CA

Facts: 
Pursuant to a promissory note dated March 13, 1990, private respondent M.B. Lending Corporation extended a loan to the spouses Osmeña and Merlyn Azarraga, together with petitioner Estrella Palmares. On four occasions after the execution of the promissory note and even after the loan matured, petitioner and the Azarraga spouses were able to pay partially, thereby leaving a balance. No payments were made after the last payment.

Respondent corporation filed a complaint against petitioner Palmares as the lone party-defendant, to the exclusion of the principal debtors, allegedly by reason of the insolvency of the latter.

RTC Iloilo dismissed the complaint.

CA reversed the decision of the trial court, and rendered judgment declaring herein petitioner Palmares liable to pay respondent corporation.

Issue: 

The Court of Appeals erred in ruling that Palmares acted as surety and is therefore solidarily liable to pay the promissory note.

Held:

In the case at bar, petitioner expressly bound herself to be jointly and severally or solidarily liable with the principal maker of the note. The terms of the contract are clear, explicit and unequivocal that petitioner's liability is that of a surety.