Letter to the Lawyer

Dear Attorney,

I hope this message finds you well. I am writing to seek your guidance on a troubling situation involving my sister. She agreed to become a guarantor for her friend, who took out a loan. Unfortunately, her friend has failed to meet her financial obligations, and as a result, my sister has become the subject of defamatory posts on social media made by the lender.

The lender has been spreading false and damaging information about my sister online, even though my sister was not the principal borrower. It is my understanding that the lender and the principal borrower are still communicating to resolve the issue, but the public posts against my sister persist.

What legal remedies are available for my sister to protect her reputation and stop this online harassment? Additionally, is there any liability on her part as the guarantor despite her not being directly responsible for the loan default?

Your advice on this matter would be greatly appreciated.

Sincerely,
Concerned Relative

Understanding the Legal Framework for Guarantors and Social Media Harassment in the Philippines

The situation described involves two distinct yet interconnected issues: the legal obligations of a guarantor and the potential liabilities arising from defamatory social media posts. Both aspects fall under Philippine laws, and the remedies available depend on the specific circumstances of the case.

1. Legal Obligations of a Guarantor

Nature of Guarantorship

Under the Civil Code of the Philippines, guaranty is defined in Article 2047 as a contract whereby a person, called the guarantor, binds themselves to the creditor to fulfill the obligation of the principal debtor in case the latter fails to do so. The guarantor’s liability arises only when the debtor defaults, and they are not automatically liable unless specified by the agreement.

Extent of Liability

The guarantor is subsidiarily liable, meaning they are obligated to pay only if the principal borrower fails to do so. This is clarified under Article 2058, which states that a creditor cannot demand payment from the guarantor until after exhausting the debtor’s properties. If the contract specifies a solidary (joint) obligation, the guarantor may be liable immediately upon the debtor's default.

Steps the Guarantor Can Take

Right to Exoneration: Per Article 2066, a guarantor may demand that the debtor be compelled to pay the debt.
Reimbursement: If the guarantor pays the debt, Article 2067 provides the right to seek reimbursement from the debtor for the amount paid, including damages if the default caused undue harm.
Benefit of Excussion: The guarantor can invoke the benefit of excussion, requiring the creditor to first exhaust all legal remedies against the debtor before pursuing the guarantor.

2. Legal Protections Against Social Media Harassment

Defamation Under Philippine Law

Defamatory posts on social media fall under the umbrella of libel or cyber libel, depending on the medium of publication.

Libel: Defined under Article 353 of the Revised Penal Code (RPC) as "the public and malicious imputation of a crime, vice, or defect… tending to cause dishonor, discredit, or contempt."
Cyber Libel: Addressed under Section 4(c)(4) of the Cybercrime Prevention Act of 2012 (Republic Act No. 10175), which elevates libel committed through online platforms. The penalties for cyber libel are harsher than traditional libel.

Key Elements to Prove Libel

For the lender's social media posts to be considered libelous, the following elements must be present:

Imputation of a Crime, Vice, or Defect: The posts must allege something damaging about your sister, such as irresponsibility or dishonesty, even if she is merely a guarantor.
Publicity: The defamatory statements must have been made public (e.g., on Facebook or Twitter).
Malice: The lender must have made the statements with intent to harm or without justifiable reason.
Identifiability: The statements must clearly pertain to your sister.

If these elements are satisfied, your sister may file a criminal complaint for libel or cyber libel against the lender.

Possible Remedies

Cease-and-Desist Letter: Your sister can issue a formal letter demanding the lender remove the posts and refrain from further defamatory acts. This is often a first step before initiating legal proceedings.
Filing a Complaint for Cyber Libel: If the posts persist, your sister may file a cyber libel complaint with the Cybercrime Division of the National Bureau of Investigation (NBI) or the police. A sworn affidavit and evidence of the posts (e.g., screenshots, URLs) are required.
Civil Action for Damages: Under Article 26 of the Civil Code, your sister can file a civil case for damages, claiming that the public humiliation caused her undue stress and harm to her reputation.
Injunction: A petition for injunction may be filed to stop the lender from making further defamatory posts.

3. Steps to Preserve Evidence and File a Complaint

Documentation of Evidence: Take screenshots of the defamatory posts, ensuring timestamps and URLs are visible. These serve as vital evidence in court.
Sworn Affidavit: Prepare an affidavit detailing the events and the harm caused.
Engage Local Law Enforcement or the NBI: File a complaint with the appropriate authorities for cyber libel.
Legal Representation: Consult with a lawyer to assist in filing the complaint and representing your sister in court.

4. Addressing Loan Obligations

It is important for your sister to continue cooperating with the creditor and encourage the debtor to fulfill their obligations. If the creditor has violated the Data Privacy Act of 2012 (Republic Act No. 10173) by sharing personal information or loan details online, your sister may also file a complaint with the National Privacy Commission (NPC).

5. Important Reminders for Guarantors

To avoid similar situations in the future, potential guarantors should:

Review the loan agreement carefully and understand their liabilities.
Limit their exposure by agreeing to a specific amount or term in the contract.
Retain documentation of the agreement for reference in case of disputes.

Conclusion

Your sister is not without recourse in this situation. She can rely on both criminal and civil remedies to address the defamatory acts committed by the lender. Additionally, she can enforce her rights as a guarantor to ensure the principal borrower fulfills their obligations. Given the complexity of the matter, engaging a lawyer to navigate these legal processes is highly recommended. This will not only protect her reputation but also clarify her legal standing as a guarantor.