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 drawers
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.