Case Summary (G.R. No. 188363)
Factual Antecedents
On October 10, 2002, Allied Banking Corporation accepted a post-dated check for P1,000,000.00 drawn against the account of Marciano Silva, Jr. with BPI, for deposit into the account of Mateo Mgt. Group International (MMGI). The check was post-dated to October 9, 2003, which means it could not be honored until that date. Allied Bank credited MMGI's account based on the check, but upon closing the account and withdrawing all funds, MMGI left Silva's account debited without immediate rectification.
Initial Disputes and Actions Taken
After Silva noticed the debit from his account on November 2002, he raised a complaint with BPI. BPI credited his account, and on March 21, 2003, returned a photocopy of the check to Allied Bank, stating the reason was that it was post-dated. Allied Bank rejected the return, attempting to argue its position until on May 6, 2003, BPI delivered the original check to the Philippine Clearing House Corporation (PCHC) for resolution.
Arbitration Committee’s Findings
An Arbitration Committee ruled in favor of Allied Bank, finding both banks negligent but primarily attributing the loss to BPI for failing to return the check within the stipulated 24-hour period. The Committee employed the "last clear chance" doctrine, allowing Allied Bank to receive compensation despite its own negligence because BPI had the final opportunity to avoid the situation.
Trial Court Decision
The RTC subsequently modified the arbitration decision by ruling that BPI was not solely liable and removed the award of attorney's fees. The RTC emphasized that Allied Bank’s failure to notice the check's post-dated nature demonstrated a lack of diligent behavior.
Court of Appeals Ruling
The CA overturned the RTC stance, asserting that both banks exhibited negligence but ordered a 60-40 allocation of loss. The CA highlighted Allied Bank’s failure to scrutinize the check before clearing it and reinforced BPI’s greater responsibility as the drawee bank.
Supreme Court Evaluation
The Supreme Court analyzed whether the last clear chance doctrine was appropriately applied and whether the 60-40 loss apportionment by the CA was justified. The Court underscored Allied Bank’s lack of due diligence in accepting a post-dated check while reiterating the necessity for banks to adhere strictly to established operating procedures.
Review of Negligence and Liability
Both banks were found to exhib
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Case Background
- Petitioner: Allied Banking Corporation (ABC)
- Respondent: Bank of the Philippine Islands (BPI)
- Jurisdiction: G.R. No. 188363, decided on February 27, 2013, by the Supreme Court of the Philippines.
- Context: This case revolves around the negligence of both banks concerning the handling of a post-dated check.
Facts of the Case
- On October 10, 2002, a check worth ₱1,000,000.00, payable to Mateo Mgt. Group International (MMGI), was presented for deposit at ABC's Kawit Branch.
- The check was post-dated for October 9, 2003, and was drawn against Marciano Silva, Jr.'s account at BPI Bel-Air Branch.
- ABC accepted the check and sent it for clearing to BPI via the Philippine Clearing House Corporation (PCHC).
- The check was cleared, and ABC credited MMGI’s account with ₱1,000,000.00.
- On October 22, 2002, MMGI closed its account and withdrew all funds.
- Silva later discovered a debit of ₱1,000,000.00 from his account, prompting him to complain to BPI.
- BPI credited Silva's account and returned a photocopy of the check to ABC, citing it as "post-dated."
- Disputes ensued, with the check being sent back and forth between the banks, until PCHC intervened.
Arbitration and Findings
- ABC filed a complaint with the PCHC arguing that BPI was negligent for not returning the check within the 24-hour period as required by the Clearing House Rules and Regulations (CHRR).
- BPI