Title
Bank of the Philippine Islands vs. Court of Appeals
Case
G.R. No. L-60637
Decision Date
Sep 30, 1982
BPI liable for unauthorized withdrawal via forged checks; negligence not reckless. Damages reduced: moral (P10k), attorney’s fees (P5k); exemplary damages eliminated. Restitution mitigated liability.
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Case Digest (G.R. No. L-60637)

Facts:

  1. Unauthorized Withdrawal: An unauthorized withdrawal of P17,000.00 was made from the account of private respondent Rosario Villar at the Bank of the Philippine Islands (BPI). This was done through the use of forged checks.
  2. Account Balance: The total deposit in Rosario Villar's account was P17,403.25. The unauthorized withdrawal left her account with insufficient funds.
  3. Dishonored Check: As a result of the unauthorized withdrawal, a check issued by Rosario Villar for P830.00 to pay her dressmaker was dishonored due to insufficient funds.
  4. Restitution: BPI fully restituted the amount of P17,000.00 to Rosario Villar.
  5. Forgery: The forgery of the checks was done skillfully, making it difficult for BPI's signature verifiers to detect the fraud.
  6. Damages Awarded: The trial court and the Court of Appeals awarded damages to Rosario Villar, including moral damages, attorney's fees, and exemplary damages.

Issue:

  1. Whether BPI should be held liable for the unauthorized withdrawal of funds due to forged checks.
  2. Whether the damages awarded by the lower courts (moral damages, attorney's fees, and exemplary damages) were excessive and commensurate with the circumstances of the case.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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