GUERRERO v.

TERAN

FACTS:
 Plaintiff Salvador Guerrero, guardian of the minors Maria Manuela and Maria del
Carmen Sanchez Muñoz, commenced an action against defendant Teran to recover the
sum of P4,129.56 and costs.
 The amount was claimed upon the theory that defendant Teran had been the
administrator of the estate of Antonio Sanchez Muñoz from the 1st day of September,
1901, until the 22d day of October, 1906.
 The lower court found that Teran, as administrator of the estate of Antonio Sanchez
Munoz, owed to Guerrero the sum of P3,447.46 with interest at 6% until the same
should be fully paid.
 Teran appealed the decision and alleged that the trial court erred in ruling that he
managed and administered the estate of Antonio Sanchez Munoz as judicial
administrator and executor.
 Moreover, he denied being responsible to Guerrero for the loans made to different
persons for different accounts and for credits against the persons mentioned in the
complaint.
 Upon examination of records, it was discovered that:
o Teran was in fact appointed administrator of the subject estate in 1901 and
entered into a bond in the sum of 10,000 dollars, gold, for the faithful
performance of his duties as such representative of the estate of Muñoz.
o However, in 1902, the Court of First Instance of Albay appointed Maria Munoz
Gomez (Munoz-Gomez) as guardian of Maria Manuela and Maria Sanchez
Munoz and that Munoz-Gomez gave the required bond for the faithful
performance of her duties as guardian.
o While there are indications in the record that Teran continued to act as
administrator of the estate after appointment of Munoz-Gomez, the fact exists
that the latter was the actual representative of Maria Manuela and Maria
Sanchez Munoz in the administration of their interests in the estate of the said
Antonio Sanchez Munoz.
o Therefore, Munoz-Gomez, as guardian and administratix of the estate of the
said minors, must be held responsible of the property belonging to the said
minors during the period she was their actual guardian.
 However, in 1906, the CFI of Albay removed Munoz-Gomez as guardian since she was
not a resident of the Philippine Islands at the time of her appointment.
 The court then removed her as guardian and appointed Feliz Samson as provisional
guardian with the required bond of P2,000.00.

ISSUES:
(1) Whether or not Teran, the former appointed guardian and administrator of the minors’ estate,
is liable for all the debts incurred of the estate from March 1902 to October 1906 when Munoz-
Gomez was appointed as the actual administrator--NO

(2) Whether or not the appointment of Maria Munoz as guardian was void since she did not
reside in the Philippine islands at the time of her appointment as the guardian--YES

HELD:
 FIRST ISSUE: Former appointed administrator Teran is NOT liable for the loss that
occurred from 1902 to 1906. Leopoldo Teran was responsible to the plaintiff for the fruits
 and profits resulting from their interests in the estate of the said Antonio Sanchez Muñoz
only from 1901-1902.
o If any loss occurred to herein petitioner from March 1902 to October 1906, the
period wherein Munoz-Gomez was appointed administrator, he has a right of
action only against Munoz-Gomez as the appointed legal guardian under the law
and the administratix of the property of their estate.
o Moreover, it was not shown from the records that the amount claimed by the
plaintiff were due as a result of the management of the estate during the time of
administration (1901-1902) by Teran, except the sum of P188.39, admitted to be
due by the defendant Teran.

 SECOND ISSUE: While there is nothing in the law which requires the courts to appoint
residents only as administrators or guardians; however, the courts, charged with the
responsibility of protecting the estates of the deceased persons, wards of the estate, will
find much difficulty in complying with this duty by appointing administrators and
guardians who are not personally subject to their jurisdiction.
o Notwithstanding the lack of statutory requirement, the courts should not consent
to the appointment of persons as administrators and guardians who are not
personally subject to the jurisdiction of the court.