Title
Supreme Court
Bank of the Philippine Islands vs. Casa Montessori Internationale
Case
G.R. No. 149454
Decision Date
May 28, 2004
CASA's forged checks led to P782,600 loss; BPI and CASA found equally negligent. SC ruled BPI liable for half, denied damages.

Case Digest (G.R. No. 149454)
Expanded Legal Reasoning Model

Facts:

  • Account Opening and Fraudulent Withdrawals
    • On November 8, 1982, Casa Montessori Internationale (CASA) opened Current Account No. 0291-0081-01 with the Bank of the Philippine Islands (BPI), naming Ma. Carina C. Lebron as one of its authorized signatories.
    • Between March 2 and December 1, 1990, nine checks totaling ₱782,600.00 were encashed by “Sonny D. Santos,” later shown to be a fictitious identity of external auditor Leonardo T. Yabut.
    • Yabut voluntarily admitted forging Lebron’s signature on those checks and discarding the originals to conceal his fraud.
    • The PNP Crime Laboratory compared the questioned signatures to genuine specimens and concluded they were not written by Lebron.
  • Procedural History
    • March 4, 1991: CASA filed a Complaint for Collection with Damages against BPI, seeking reinstatement of ₱782,500.00 in its accounts plus 6% interest.
    • February 16, 1999: The Regional Trial Court (RTC) ruled in favor of CASA, ordering BPI to re-credit the claimed amount.
    • March 23, 2001: The Court of Appeals (CA) modified the RTC decision, holding BPI liable for only half of the forged-check value (₱547,115.00) and ordering Yabut and CASA to pay the other half.
    • August 17, 2001: The CA denied all motions for reconsideration.
    • Two Rule 45 petitions were filed: BPI in G.R. No. 149454 and CASA in G.R. No. 149507, later consolidated for decision.

Issues:

  • Forgery under the Negotiable Instruments Law
    • Was the signature on the nine CASA checks forged within the meaning of Section 23 of the NIL?
    • Must forgery be proved by clear, positive and convincing evidence, and does the burden rest on the party alleging it?
  • Negligence and Its Effects
    • Did BPI’s negligence in signature verification or CASA’s own negligence bar either from setting up forgery as a defense or recovering the funds?
    • Does CASA’s failure to report errors in monthly bank statements within ten days constitute waiver or estoppel?
  • Award of Damages
    • Should moral and exemplary damages, attorney’s fees, and interest be awarded to CASA?
    • What apportionment of liability, rate of interest, and amount of attorney’s fees is proper?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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