Case Digest (G.R. No. 112392)
Facts:
On September 3, 1987, Benjamin C. Napiza deposited in his Foreign Currency Deposit Unit (FCDU) Savings Account No. 028-187 maintained at the Bank of the Philippine Islands’ Buendia Avenue Extension Branch a purported Continental Bank manager’s check No. 00014757, dated August 17, 1984, in the amount of USD 2,500.00. Napiza endorsed the check “to cash” and, at the request of its true owner, Henry Chan, issued a signed blank withdrawal slip under the understanding that once the check cleared, he and Chan would withdraw the proceeds together using Napiza’s passbook. Instead, on October 23, 1984, one Ruben Gayon, Jr. withdrew USD 2,541.67—payable to Ramon A. de Guzman and Agnes C. de Guzman—from Napiza’s account, without presenting Napiza’s passbook and before the check had been cleared. On November 20, 1984, BPI received advice from Wells Fargo Bank International that the check was counterfeit. BPI’s branch manager notified Napiza through his son and via telegram, demanded repaymenCase Digest (G.R. No. 112392)
Facts:
- Deposit and Agreement
- On August 17, 1984, Henry Chan issued Manager’s Check No. 00014757 for USD 2,500 drawn on Continental Bank International.
- At Chan’s request, private respondent Benjamin C. Napiza deposited the check in his FCDU Savings Account No. 028-187 at BPI Buendia Avenue Extension Branch on September 3, 1984, by endorsing it “Pay to cash.”
- Napiza executed a signed blank withdrawal slip, understanding that once the check cleared, he and Chan would jointly withdraw the proceeds upon presentation of Napiza’s passbook.
- Unauthorized Withdrawal
- On October 23, 1984, one Ruben Gayon, Jr., using the blank withdrawal slip, withdrew USD 2,541.67 from Napiza’s FCDU account. The slip bore typed payees “Ramon A. de Guzman and Agnes C. de Guzman” and was initialed by Branch Assistant Manager Teresita Lindo.
- Napiza did not present his passbook; the bank credited the withdrawal despite lacking notice of final payment from the drawee bank.
- Dishonor and Demand
- On November 20, 1984, Wells Fargo Bank International informed BPI that the Continental Bank check was counterfeit.
- BPI’s Buendia Avenue Manager Ariel Reyes and Napiza’s son notified Napiza of the dishonor and demanded return of USD 2,500. Subsequent letters (Dec 18, 1984; Apr 8, 1985) reiterated the demand.
- Napiza responded (Apr 20, 1985) that his obligation was moral, that he had waited 50 days for clearance, and that he would pursue Chan for reimbursement.
- Litigation History
- BPI filed suit on August 12, 1986 for USD 2,500 (or peso equivalent), interest, attorney’s fees (20%), and costs.
- Napiza answered, admitted signing the blank slip, alleged collusion by BPI employees, asserted BPI’s gross negligence, and counterclaimed for moral and exemplary damages and attorney’s fees; he also moved to implead Chan as third-party defendant.
- The RTC (Makati, Branch 139) dismissed BPI’s complaint, holding BPI liable for allowing withdrawal prior to clearance. The CA affirmed, finding clear gross negligence by BPI.
- BPI petitioned the Supreme Court raising three issues: (1) Napiza’s liability as general indorser; (2) existence of agency between Napiza and Gayon; and (3) BPI’s negligence.
Issues:
- Whether Napiza is liable under his warranties as a general indorser of the check.
- Whether a contract of agency was created between Napiza and Ruben Gayon, Jr.
- Whether BPI was grossly negligent in permitting the withdrawal without satisfying its own rules or obtaining notice of final payment.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)