American Express Co. vs.

Santiago
January 17, 1973 | Makalintal, J. | Parties; Capacity to sue and be sued

PETITIONERS: AMERICAN EXPRESS COMPANY, INC.

RESPONDENTS: CIRIO H. SANTIAGO

SUMMARY: Amex sued Santiago for not paying his credit card bills. Santiago argued that the real
creditor / real party in interest in the case is not Amex, but the establishments from where he availed
goods/services on credit. Court held that Amex is the creditor of Santiago and therefore the proper party
to file the collection suit.

DOCTRINE:

Of the case: The credit card company, and not the services / establishments who sold goods or services on
credit, is the creditor in a collection suit, and therefore the real party in interest.
In relation to topic: A foreign corporation doing business in the Philippines has the capacity to be sue and be
sued (in the Philippines). Doing business in the Philippines includes opening a branch in the country, as
stated in RA 7042 Sec 3 (d). (Digesters Note: This was not actually talked about in the case. But this is the
implied doctrine based on the subtopic that this case falls under in the syllabus).
FACTS:
 1. American Express Co. (Amex), is a New York based corporation which has a branch in the
Philippines that is duly licensed to do business in the country as a travel agency . It offers the
American Express Credit Card to its customers for them to enjoy charge privileges in selected
establishments around the world.
2. Santiago availed of the credit card and used it to make credit purchases in several countries. His
bill amounted to over $15K.
3. After Santiagos refusal to pay upon demand, Amex filed a civil case for collection against him.
4. CFI decided for Amex. Santiago filed an appeal directly with the SC.
5. Santiagos defense: Amex has no cause of action against him, since it is not the real party in
interest. Instead, it is the establishments from which he made purchases and obtained services on
credit that should have properly brought the suit.

ISSUES/HELD
1. Whether the real party in interest (i.e., the creditor in the collection suit) is Amex (the
credit card company), or the establishments which sold goods or services to Santiago on
credit. AMEX
RATIO:
American Express is the creditor of Santiago; therefore, it is the proper party to file this suit of
collection.
A credit card holder is able to make purchases on credit from any store or establishment because said
purchases are backed up by American Express through the credit card. The establishments bill Amex,
which settled the accounts directly. Amex in turn bills its customers / credit card holders. Therefore it is
Amex which pays for the purchases, and Santiago has to reimburse such payment to Amex.