Title
Banco Filipino Savings and Mortgage Bank vs. Court of Appeals
Case
G.R. No. 105138
Decision Date
Aug 5, 1993
Cecilia Fernandez mortgaged properties to Banco Filipino; Grace Delos Santos paid P100K to halt foreclosure but property was sold to another buyer. Delos Santos sued for breach; courts initially ruled in her favor, but SC reversed, holding bank not liable as managers acted beyond authority.
Font Size:

Case Digest (G.R. No. 105138)

Facts:

  1. Property Ownership and Mortgage:

    • Cecilia O. Fernandez was the registered owner of two parcels of land (Lot 610-A and Lot 6, Block 6).
    • She mortgaged these properties to Banco Filipino Savings and Mortgage Bank (BF Naga Branch).
    • Due to Fernandez's failure to comply with the mortgage terms, the bank initiated extrajudicial foreclosure proceedings, with the auction sale scheduled for June 6, 1983.
  2. Negotiations with Grace Co Delos Santos:

    • Prior to the auction, Angie Janer, manager of Banco Filipino Legaspi, informed Grace Co Delos Santos about the foreclosure and inquired if she was interested in purchasing the property.
    • Delos Santos expressed interest and met with Fernandez's daughter, Vicky, who stated that Fernandez was willing to sell the property for P350,000.00.
    • Fernandez had an arrangement with Banco Filipino to remit P100,000.00 to stop the foreclosure.
  3. Payment and Assurance:

    • Delos Santos verified the arrangement with Domingo Claro, BF Naga Branch Manager, who confirmed the need for P100,000.00 to halt the foreclosure.
    • Delos Santos issued a PCIB check for P100,000.00 payable to Banco Filipino for Fernandez's account.
    • Angie Janer issued a receipt for the check, and the check was delivered to BF Naga, which issued an official receipt.
    • Delos Santos was assured that after paying P100,000.00, she could assume the mortgage and become the owner of the property.
  4. Breach of Agreement:

    • On June 1, 1983, Delos Santos visited BF Naga to clarify loan amortization details and was given a statement of account reflecting the selling price of P350,000.00.
    • On June 3, 1983, Delos Santos discovered that the property had been sold to Rita Samarista, who had also paid P100,000.00 to BF Naga.
    • BF Naga accepted Samarista's payment and informed Delos Santos that her payment would be treated as an account payable.
  5. Legal Proceedings:

    • Delos Santos filed a case against Banco Filipino and Fernandez for breach of agreement.
    • The Regional Trial Court ruled in favor of Delos Santos, awarding actual, moral, exemplary damages, and attorney's fees.
    • The Court of Appeals affirmed the trial court's decision.

Issue:

  1. Whether Banco Filipino's managers, Angie Janer and Domingo Claro, are liable for tort (quasi-delict) for their actions in the transaction.
  2. Whether the acts of Janer and Claro were within the scope of their authority, making Banco Filipino liable.
  3. Whether the award of damages was excessive and without legal basis.

Ruling:

The Supreme Court reversed the decision of the Court of Appeals and dismissed the complaint against Banco Filipino.

  1. Liability for Tort:

    • The Court found that Angie Janer and Domingo Claro did not act within the scope of their authority when they facilitated the transaction.
    • Janer's receipt of the check was not on behalf of the bank, as it was issued on ordinary paper and not on official bank stationery.
    • The bank was not the owner of the property and had no authority to sell it.
  2. Breach of Contract:

    • The breach of the sale agreement was attributable to Fernandez, not Banco Filipino.
    • There was no evidence that the bank's managers induced Fernandez to sell the property to Samarista.
  3. Damages:

    • The Court held that the award of damages was without legal basis since Banco Filipino was not responsible for the breach.

Ratio:

  1. Quasi-Delict and Corporate Liability:

    • Under Article 2176 and Article 2180 of the Civil Code, a corporation is liable for the acts of its employees only if such acts are within the scope of their authority.
    • In this case, Janer and Claro acted beyond their authority, and their actions did not bind the bank.
  2. Negligence and Good Faith:

    • Delos Santos negotiated with Fernandez, not the bank, and should have secured a written commitment from Fernandez to protect her interests.
    • The bank's involvement was limited to assisting in the transaction, and it did not guarantee the sale to Delos Santos.
  3. Corporate Responsibility:

    • A corporation acts through its officers and employees, but liability arises only when their actions are within their official functions.
    • Since Janer and Claro acted outside their authority, Banco Filipino could not be held liable for their actions.


Jur is an AI-powered legal research platform in the Philippines for case digests, summaries, and jurisprudence. AI-generated content may contain inaccuracies; please verify independently.