Banta vs. Equitable Bank, Inc.

Facts:

The parties are petitioner Remedios T. Banta and respondents Equitable Bank, Inc. (now BDO Unibank, Inc.), Antonio Banta, Armando T. Banta, Sonia O. Banta, Erlinda B. Tan, and the Register of Deeds of Malabon City. Remedios and Antonio were married in 1975 but ceased cohabitation in 1991. In June 1997 petitioner discovered that Antonio had, without her consent, forged her signature to a Deed of Real Estate Mortgage dated September 1, 1994 over properties in Malabon (TCT Nos. M-10421, M-10422, M-9155) allegedly securing a P1,000,000 loan from Equitable Bank.

Petitioner later found an "Amendment to Real Estate Mortgage" dated May 11, 1995, likewise bearing her forged signature together with signatures of Antonio, Armando, Sonia, and Erlinda, covering five properties (TCT Nos. M-1989, R-41303, R-49374, R-34869, R-41682) to secure additional loans of P4,500,000 from the Bank. She filed a Complaint for Annulment of Deed of Real Estate Mortgage with Damages before the Regional Trial Court (RTC) of Malabon City against the Bank, Antonio, Armando, Sonia, Erlinda and the Register of Deeds.

In a Decision dated August 17, 2009 the RTC (Branch 74) dismissed the claims against Armando, Sonia and Erlinda as to certain TCTs registered in their names, but declared the Amendment to Real Estate Mortgage (covering the petitioner's titles) null and void for forgery. The RTC relied on unrebutted handwriting expert reports from the PNP and NBI and found the Bank negligent for accepting the mortgaged properties without verifying the authenticity of petitioner’s signature; it ordered cancellation of the mortgage and directed Antonio and Equitable Bank to cancel the mortgage and to jointly and severally pay attorney’s fees of P50,000.

Both petitioner and the Bank appealed to the Court of Appeals (CA). Petitioner sought additional relief (moral and exemplary damages and increased attorney’s fees); the Bank sought to avoid solidary liability with Antonio. In a Decision dated July 8, 2015, the CA affirmed the RTC with modification: it awarded petitioner moral damages (P300,000), exemplary damages (P100,000), and attorney’s fees (P100,000) but deleted the Bank’s joint and several liability with Antonio, reasoning that absent a showing of bad faith or conspiracy the Bank could not be held solidarily liable. Petitioner...(Pro-only)

Issues:

• Whether Equitable Bank, Inc. should be held jointly and severally liable with Antonio Banta for payment of moral and exemplary damages, and attorney’s fees to Remedios Ban...(Pro-only)

Ruling:

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Ratio:

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Doctrine:

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