G.R. No. 188078 - Aldaba vs. Commission on Elections

Petitioners Asia Brewery, Inc. (ABI), a Philippine corporation, and Charlie S. Go (Go), its Assistant Vice President for Finance, filed a Complaint for payment, reimbursement, or restitution.
Respondent Equitable PCI Bank (now Banco de Oro-EPCI, Inc.), a Philippine banking institution, answered with counterclaims and raised the special and/or affirmative defense of lack of cause of action.

Between September 1996 and July 1998, ten checks and sixteen demand drafts totaling P3,785,257.38 were issued in the name of Charlie Go, bearing the legend “endorsed by PCI Bank, Ayala Branch, All Prior Endorsement And/Or Lack of Endorsement Guaranteed.”
All but two demand drafts were crossed. The instruments never reached the payee, Charlie Go, but fell into the hands of Raymond U. Keh, an ABI Sales Accounting Manager, who allegedly impersonated Go, opened accounts, deposited the instruments, and withdrew the proceeds. Keh was later convicted of theft but evaded payment.

On 23 March 2004, petitioners filed their Complaint before the RTC of Makati City (Civil Case No. 04-336). Respondent filed its Answer with Counterclaims on 7 May 2004.
Without trial, the RTC issued two orders: (a) 30 January 2008 – dismissed the Complaint for lack of cause of action and denied respondent’s counterclaims; (b) 23 November 2009 – denied petitioners’ motion for reconsideration. Petitioners elevated the case to the Supreme Court via a Rule 45 petition.

Whether petitioners alleged a cause of action by showing a legal right, the bank’s correlative obligation, and the bank’s wrongful refusal to pay.
Whether nondelivery of the instruments to the payee precludes constructive or presumed delivery under the Negotiable Instruments Law.

Whether “lack of cause of action” can be raised in a pretrial motion to dismiss under Rule 16 of the Rules of Court.
Whether the RTC erred in conflating “failure to state a cause of action” with “lack of cause of action” and dismissing prior to evidence presentation.