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Trade and Investment Development Corporation of the Philippines vs. Roblett Industrial Construction Corporation, et al.

TRADE & INVESTMENT DEVELOPMENT CORPORATION OF THE PHILIPPINES (Formerly Philippine Export & Foreign Loan Guarantee Corporation, Petitioner, versus ROBLETT INDUSTRIAL CONSTRUCTION CORPORATION, ROBERTO G. ABIERA and LETICIA ABIERA, and PARAMOUNT INSURANCE CORPORATION, Respondents.

G.R. No. 139290 | 2005-11-11

D E C I S I O N 


Tinga, J.:

The central issue in this case is whether respondent Paramount Insurance Corporation (Paramount) is liable as surety to petitioner Philippine Export and Foreign Loan Guarantee Corporation[1] (Philguarantee), under a surety bond (Surety Bond) dated 12 March 1984. This Surety Bond was one of a series of undertakings involving several parties, occasioned by the bid of respondent Roblett Industrial Construction Corporation (Roblett) for a Kuwaiti government contract. The assailed ruling of the Court of Appeals (CA) discharged Paramount from its liability on the Surety Bond. Yet Paramount's liability is...