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Surety Liability in Administrator Bonds

The administrator's bonds issued by the plaintiff-appellee surety company remained in force from 1955 until they were cancelled in 1962, despite the defendants-appellants claim that the bonds should have been cancelled after the estates were partitioned in 1957. The surety is liable under the administrator's bond for as long as the administrator has duties to perform. Here, the defendant-appellant administrator still had duties to perform as administrator even after the 1957 partition, so the bonds remained in effect until their cancellation in 1962. Therefore, the surety company can demand payment from the defendants-appellants for bond premiums during the period of 1955 to 1962 that the bonds were in force.

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Fritz Frances Danielle
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95 views2 pages

Surety Liability in Administrator Bonds

The administrator's bonds issued by the plaintiff-appellee surety company remained in force from 1955 until they were cancelled in 1962, despite the defendants-appellants claim that the bonds should have been cancelled after the estates were partitioned in 1957. The surety is liable under the administrator's bond for as long as the administrator has duties to perform. Here, the defendant-appellant administrator still had duties to perform as administrator even after the 1957 partition, so the bonds remained in effect until their cancellation in 1962. Therefore, the surety company can demand payment from the defendants-appellants for bond premiums during the period of 1955 to 1962 that the bonds were in force.

Uploaded by

Fritz Frances Danielle
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CONDITIONS OF THE BOND  On 1957, CFI approved approved the amended

Project of Partition and Accounts of defendant-


G.R. No. L-40517 January 31, 1984
appellant
LUZON SURETY COMPANY, INC., plaintiff-appellee,  On October 17, 1962, the defendants-appellants
ordered a motion for cancellation and/or reduction
vs.
of executor's bonds on the ground that "the heirs of
PASTOR T. QUEBRAR and FRANCISCO KILAYKO, these testate estates have already received their
defendants-appellants. respective shares"
 Plaintiff-appellee's demanded defendants-
DOCTRINE
appellants to pay the said amount of P4,872.00 for
 surety is the liable under the the period of August 9, 1955 to October 20, 1962 on
administrator's bond, for as long as the the ground that the bonds were still in force during
administrator has duties to do as such the said years.
administrator/executor.
ISSUE
FACTS
Whether or not the administrator's bonds were in
 Plaintiff-appellee issued two administrator's bond force and effect from and after the year that they
in the amount of P15,000.00 each, in behalf of the were filed and approved by the court up to 1962,
defendant-appellant Pastor T. Quebrar, as when they were cancelled
administrator in Special Proceedings Nos. 3075 and HELD – YES
3076 (estate of Chinsuy and Lipa)
 In consideration of the suretyship wherein the RATIO:
plaintiff-appellee was bound jointly and severally
 The bonds herein were required by Section 1 of Rule
with the defendant appellant Pastor T. Quebrar –
81 of the Rules of Court which states and requires
the defendant executed two indemnity agreements
the administrator/executor to put up a bond for the
together with Francisco Kilayko. (P300.00)
purpose of indemnifying the creditors, heirs,
 For the first year, from August 9, 1954 to August 9, legatees and the estate. It is conditioned upon the
1955, the defendants-appellants paid P304.50 faithful performance of the administrator's trust
under each indemnity agreement or a total of
 Having in mind the purpose and intent of the law,
P609.00 for premiums and documentary stamps.
the surety is then liable under the
administrator's bond, for as long as the
administrator has duties to do as such
administrator/executor.
 It is shown that the defendant-appellant Pastor T.
Quebrar, still had something to do as an
administrator/executor even after the approval of
the amended project of partition and accounts on
June 6, 1957.
 With the payment of the premium for the first year,
the surety already assumed the risk involved, that
is, in case defendant-appellant Pastor T. Quebrar
defaults in his administrative duties.
 The surety became liable under the bond for the
faithful administration of the estate by the
administrator/executor.
 Hence, for as long as defendant-appellant Pastor T.
Quebrar was administrator of the estates, the bond
was held liable and inevitably, the plaintiff-
appellee's liability subsists since the liability of the
sureties is co-extensive with that of the
administrator.

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