Case Digest (G.R. No. 208480)
Facts:
In Republic Bank vs. Mauricia T. Ebrada, decided on July 31, 1975 by the First Division (G.R. No. L-40796), the plaintiff-appellee, Republic Bank, sought reimbursement of P1,246.08 it had refunded to the Bureau of Treasury after cashing Back Pay Check No. BP-508060 dated January 15, 1963, payable to Martin Lorenzo, at its Escolta, Manila office on February 27, 1963. The Treasury later notified the bank that the indorsement of Lorenzo was a forgery, as he had supposedly died on July 14, 1952. Upon request by the Bureau, Republic Bank refunded the amount and then sued the last indorser, defendant-appellant Mauricia T. Ebrada, in the City Court of Manila to recover the sum. Ebrada denied liability, claiming she was a holder in due course or had acquired rights from one, and pleaded estoppel and negligence on the bank’s part. She also filed third- and fourth-party complaints against Adelaida Dominguez and Justina Tinio, respectively. The City Court rendered judgment for the bank, anCase Digest (G.R. No. 208480)
Facts:
- Parties and subject check
- Plaintiff-Appellee: Republic Bank, drawee of Check No. BP-508060 dated January 15, 1963, payable to “Martin Lorenzo,” amounting to ₱1,246.08.
- Defendant-Appellant: Mauricia T. Ebrada, last indorser who encashed the check on February 27, 1963 at Republic Bank’s main office.
- Transaction and indorsements
- Original payee “Martin Lorenzo” was already deceased (died July 14, 1952); his indorsement was forged.
- True indorsement chain after the forgery: Ramon R. Lorenzo → Delia Dominguez → Mauricia T. Ebrada; Ebrada received proceeds and immediately passed them to Dominguez, who in turn gave them to Justina Tinio.
- Procedural history
- Republic Bank reimbursed the Bureau of Treasury upon discovering the forgery and sued Ebrada in the City Court of Manila; judgment for Republic Bank ordering Ebrada to repay ₱1,246.08 with interest and costs.
- Appeal to the Court of First Instance of Manila; parties submitted a partial stipulation of facts; decision affirmed by the Supreme Court under G.R. No. L-40796, July 31, 1975.
Issues:
- Whether a drawee bank that has paid a check bearing a forged original payee’s signature can recover the amount from the last indorser who encashed it.
- Whether Mauricia T. Ebrada, as last indorser and accommodation party, is liable to Republic Bank for the proceeds of the forged instrument.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)