Ibanez v. Hong Kong & Shanghai Banking Corp., 246 U.S. 627 (1918)

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Ibanez v. Hong Kong & Shanghai Banking Corporation


No. 231


Argued March 20, 21, 1918
Decided April 29, 1918
246 U.S. 627

APPEAL FROM THE SUPREME COURT
OF THE PHILIPPINE ISLANDS

Syllabus

Mortgagors, in an action to foreclose, unsuccessfully pleaded in abatement their pending action to annul the mortgage, which had been submitted. Held that the ruling, even if erroneous, became harmless in view of a judgment in the earlier action by which the validity of the mortgage was correctly sustained.

The court accepts the lower courts’ interpretation of the Philippine law (Civil Code, Art. 1851) to the effect that mere failure of a creditor to sue when the obligation in whole or in part matures does not extend its term, and that to extinguish a surety’s liability, an extension must be based on some new agreement by which the creditor deprives himself of the right immediately to enforce his claim.

The judgment of the trial court is modified to correct a clerical error, appearing by the trial court’s opinion and by concession of appellee’s counsel.

30 Phil.Rep. 255 affirmed.

The case is stated in the opinion.