Back

People's Trans-East Asis Insurance Corporation, a.k.a. People's General Insurance Corporation Vs. Doctors of New Millenium Holdings, Inc.

PEOPLE'S TRANS-EAST ASIA INSURANCE CORPORATION, a.k.a. PEOPLE'S GENERAL INSURANCE CORPORATION, Petitioner, vs. DOCTORS OF NEW MILLENNIUM HOLDINGS, INC., Respondent,

G.R. No. 172404 | 2014-08-13

THIRD DIVISION
 
DECISION

LEONEN, J.:
 
The liabilities of an insurer under the surety bond are not extinguished when the modifications in the principal contract do not sub'stantially or materially alter the principal 's obligations. The surety is jointly and severally liable with its principal when the latter defaults from its obligations under the principal contract.
 
This is a petition for review on certiorari under Rule 45 of the Rules of Court, praying for the reversal of the decision1 of the Court of Appeals which set aside the decision2 of the Regional Trial Court of Pasig...