PIONEER INSURANCE & SURETY CORPORATION vs. THE HON. COURT OF APPEALS
PIONEER INSURANCE & SURETY CORPORATION vs. THE HON. COURT OF APPEALS, BORDER MACHINERY & HEAVY EQUIPMENT, INC., (BORMAHECO), CONSTANCIO M. MAGLANA and JACOB S. LIM G.R. No. 84197 July 28, 1989 Facts: 1. In 1965, Jacob S. Lim was engaged in the airline business as owner-operator of Southern Air Lines (SAL) a single proprietorship. 2. On May 17, 1965, at Tokyo, Japan, Japan Domestic Airlines (JDA) and Lim entered into and executed a sales contract for the sale and purchase of two DC-3A Type aircrafts and one set of necessary spare parts for the total agreed price of US $109,000.00 to be paid in installments. 3. On May 22, 1965, Pioneer Insurance and Surety Corporation as surety executed and issued its Surety Bond in favor of JDA, in behalf of its principal, Lim, for the balance price of the aircrafts and spare parts. 4. It appears that Border M...