Case Digest (G.R. No. 140687)
Facts:
Jose "Joseph" Gotianuy filed a complaint in the RTC, Branch 58, Cebu City (CEB‑21445) alleging that his daughter Mary Margaret Dee and son‑in‑law George Dee converted his Citibank US dollar funds, evidenced by several Citibank checks which were later stamped as deposited at China Banking Corporation. Jose "Joseph" Gotianuy died during the proceedings and was substituted by Elizabeth Gotianuy Lo, who secured an RTC order (April 16, 1999) compelling China Bank employees to testify only as to in whose name the questioned foreign currency deposits were held.
China Bank petitioned the Court of Appeals, which denied relief in a Decision dated October 29, 1999; China Bank elevated the case to the Supreme Court contesting the RTC and CA orders compeling disclosure of the depositor's name under Sec. 8, R.A. 6426, as amended (P.D. No. 1246).
Issues:
- Did the Court of Appeals err in interpreting Sec. 8, R.A. 6426, as amended to permit disclosure of the name of the depositor of foreign currency deposits?
- Could Jose "Joseph" Gotianuy be considered the owner or depositor entitled to seek disclosure of the questioned foreign currency deposits?
- Could China Banking Corporation invoke Sec. 8, R.A. 6426, as amended on behalf of the alleged depositor to resist the subpoena?
Ruling:
The Supreme Court DENIED the petition and AFFIRMED the Decision of the Court of Appeals and the RTC Order of April 16, 1999, and REMANDED the case to the trial court for continuation of the hearing. The Court sustained only a limited, pro hac vice allowance for inquiry limited to disclosing in whose name the foreign currency deposits (the Citibank checks) were held.
The Court found that Jose "Joseph" Gotianuy could be regarded as a depositor entitled to seek disclosure of the depositor's name based on the established facts, and refused to permit China Bank to invoke absolute secrecy to bar that limited disclosure.
Ratio:
While Sec. 8, R.A. 6426, as amended (P.D. No. 1246) declares foreign currency deposits absolutely confidential except upon the written permission of the depositor, the Court examined the factual matrix and precedents and concluded that rigid application would perpetuate injustice. The checks named Jose "Joseph" Gotianuy as co‑payee, the respondent admitted withdrawing the funds for her father, the checks bore dorsal endorsements and a China Bank stamp showing deposit, and an employee testified regarding the deposit; these facts established that Jose "Joseph" Gotianuy had a legal interest as a depositor. Relying on prior decisions that allowed limited inquiry under peculiar circumstances, the Court fashioned a narrow pro hac vice exception permitting disclosure only of the name of the depositor to vindicate substantive rights without wholesale abrogation of the statutory secrecy.
Doctrine:
- Sec. 8, R.A. 6426, as amended (P.D. No. 1246) declares secrecy of foreign currency deposits and permits disclosure only upon the written permission of the depositor.
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