Title
Patrimonio vs. Gutierrez
Case
G.R. No. 187769
Decision Date
Jun 4, 2014
Patrimonio pre-signed blank checks for business use; Gutierrez misused one for an unauthorized loan. SC ruled loan void, absolving Patrimonio due to lack of authority and Marasigan's bad faith.

Case Digest (G.R. No. 150175)
Expanded Legal Reasoning Model

Facts:

  • Formation and operations of Slam Dunk Corporation
    • Petitioner Alvin Patrimonio, a professional basketball player, and respondent Napoleon Gutierrez, a sports columnist, formed Slam Dunk Corporation to produce mini-concerts and basketball shows.
    • Patrimonio pre-signed several blank checks (no payee, date, or amount) and entrusted them to Gutierrez, expressly instructing that they be filled out and used only with his prior knowledge and approval, to cover business expenses.
  • Unauthorized loan transaction
    • In mid-1993, without Patrimonio’s consent, Gutierrez requested a P200,000 loan from respondent Octavio Marasigan III, allegedly for Patrimonio’s house construction, promising 5% monthly interest.
    • Gutierrez delivered one pre-signed blank check (Pilipinas Bank Check No. 21001764), filled in as “Cash – Two Hundred Thousand Pesos Only,” dated May 23, 1994. The check bounced for “Account Closed” (account closed since May 28, 1993).
  • Judicial proceedings
    • Criminal case: Marasigan filed a B.P. 22 case (No. 42816) against Patrimonio; civil case: Patrimonio filed for nullity of loan and damages against Gutierrez and Marasigan in RTC Branch 77, Quezon City.
    • RTC Decision (Feb. 3, 2003): Gutierrez in default; held Marasigan a holder in due course; dismissed nullity complaint; ordered Patrimonio to pay P200,000, with right to reimbursement from Gutierrez.
    • CA Decision (Sept. 24, 2008): Agreed Patrimonio never authorized loan; held Marasigan not a holder in due course; nonetheless ruled loan not void (grounded in law); affirmed Patrimonio’s liability to pay P200,000. Motion for reconsideration denied (Apr. 30, 2009).
    • Petition: Patrimonio sought SC review under Rule 45, arguing absence of authorization, necessity of written SPA (Art. 1878, Civil Code), no holder in due course status for Marasigan, and entitlement to damages.

Issues:

  • Can the P200,000 loan contract be nullified as void for lack of authorization by Patrimonio?
  • Is Patrimonio liable to pay the P200,000 loan to Marasigan?
  • Did Gutierrez strictly fill out the pre-signed check within the authority granted by Patrimonio?
  • Is Marasigan a holder in due course of the check?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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