Sapiera vs CA

Sapiera vs Court of Appeals

[G.R. No. 128927.  September 14, 1999]

FACTS:

Petitioner Remedios Sapiera, a sari-sari store owner, was issued by one Arturo de Guzman checks as payment for purchases he made at her store.  She used said checks to pay for certain items she purchased from the grocery store of Ramon Sua.  These checks were signed at the back by petitioner.  When presented for payment the checks were dishonored because the drawer’s account was already closed.  Sua informed Arturo de Guzman and petitioner about the dishonor but both failed to pay the value of the checks.  Petitioner was acquitted in the charge of estafa filed against her but she was found liable for the value of the checks. 

ISSUE:

Whether petitioner is liable for the value of the checks even if she signed the subject checks only for the identification of the signature of Arturo de Guzman.

RULING:

Petitioner is liable for the value of the checks.  As she (petitioner) signed the subject checks on the reverse side without any indication as to how she should be bound thereby, she is deemed to be an unqualified indorser thereof.  Every indorser who indorses without qualification, warrants to all subsequent holders in due course that, on due presentment, it shall be accepted or paid or both, according to its tenor, and that if it be dishonored and the necessary proceedings on dishonor be duly taken, he will pay the amount thereof to the holder or to any subsequent indorser who may be compelled to pay it.