Clark vs Sellner (GR No. 16477, 22 Nov 1921)
Defendant, was acquitted on the crime of malversation of public fund due to reasonable doubt. The judgement however still found the defendant civilly liable for the amount malversed. Defendant appealed the said judgement, contending that she was just a mere indorser of the said checks issued against the funds of the government. The CA certified the this said case to the sc as it was purely a question of law.
Whether the Petitioner is civilly liable for being a mere indorser on account of the dishonor of the checks indorsed by her.
Yes, the holder or last indorsee of a negotiable instrument has the right to “enforce payment of the instrument for the full amount thereof against all parties liable thereon.” Among the “parties liable thereon” is an indorser of the instrument i.e., “a person placing his signature upon an instrument otherwise than as maker, drawer, or acceptor ** unless he clearly indicates by appropriate words his intention to be bound in some other capacity. “Such an indorser “who indorses without qualification,” inter alia “engages that on due presentment, ** (the instrument) shall be accepted or paid, or both, as the case may be, 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.” Maniego may also be deemed an “accommodation party” in the light of the facts, i.e., a person “who has signed the instrument as maker, drawer, acceptor, or indorser, without receiving value therefor, and for the purpose of lending his name to some other person.”