Title
Bank of the Philippine Islands vs. Mendoza
Case
G.R. No. 198799
Decision Date
Mar 20, 2017
BPI sued respondents for reimbursement after a US Treasury Check deposited by them was dishonored. SC ruled in favor of BPI, citing solutio indebiti, and ordered repayment with 6% interest.
dishonored check
cause of action
evidence
A

Case Summary (G.R. No. 88602)

Factual Background

On April 8, 1997, respondents opened a foreign currency savings account and a time deposit account at BPI-Gapan Branch and deposited a US Treasury check in the aggregate amount of US$16,264.00 and US$2,000.00 in time deposit. After a thirty-day clearing period, respondents withdrew US$16,244.00, leaving US$20.00. On June 26, 1997, BPI received an advice from its correspondent, Bankers Trust Company New York, that the subject US Treasury check was dishonored because the amount was altered and that the original had been confiscated by the United States government. BPI informed respondents of the dishonor on June 27, 1997 and demanded reimbursement; on July 18, 1997 respondents purportedly allowed application of their time deposit proceeds to partly offset the obligation; thereafter Amado executed a promissory note dated September 8, 1997; respondents did not fully pay despite demands.

Trial Court Proceedings

BPI filed a Complaint for Sum of Money with Application for Writ of Attachment before the RTC. The RTC, after trial, accepted BPI’s evidence including the photocopy of the subject check stamped on its dorsal portion and an e-mail printout from Bankers Trust, together with BPI’s notices and the promissory note executed by Amado. The RTC concluded that respondents were duly notified of the dishonor, that the bank paid respondents by mistake, and that respondents therefore had an obligation to return the proceeds under Article 2154. The RTC ordered respondents to pay P369,600.51, plus legal interest of twelve percent per annum from the time the money was withdrawn, and awarded ten percent attorney’s fees.

Court of Appeals Ruling

On appeal, the Court of Appeals reversed and dismissed the complaint. The CA held that BPI failed to prove the dishonor of the subject check because the bank presented only a photocopy of the check, thereby running afoul of the Best Evidence Rule, and because the e-mail advice from Bankers Trust was not properly authenticated under the Rules on Electronic Evidence since the sender was not identified or presented in court. The CA found that BPI therefore did not meet its burden of proof and ordered dismissal. A motion for reconsideration to the CA was denied.

Issue Presented to the Supreme Court

The primary issue before the Supreme Court was whether the CA correctly dismissed BPI’s complaint for sum of money against respondents based on purported failure to prove the dishonor of the subject check.

Standard of Review and Exceptions

The Court reiterated that a petition under Rule 45, Rules of Court generally raises only questions of law and does not permit reexamination of factual findings, because the Supreme Court is not a trier of facts. The Court noted, however, recognized exceptions where the factual findings of the trial court and the appellate court are conflicting; in such circumstances the Court may resolve factual issues by re-evaluation of the record. The Court found such an exception present because the RTC and the CA reached conflicting conclusions on the sufficiency and weight of the evidence.

Burden of Proof and Assessment of Evidence

The Court reviewed the record and found that BPI proved by preponderance of evidence the existence of respondents’ obligation. The Court emphasized that preponderance of evidence requires greater weight of credible evidence and that the plaintiff must rely on the strength of its own proof. The Court observed that Amado voluntarily signed BPI’s letters dated June 27 and July 18, 1997 acknowledging the dishonor and allowing application of time deposit proceeds, and that he executed the promissory note of September 8, 1997 promising monthly payments. The Court found Amado’s testimony that these acts were conditional upon production of authenticated proof to be uncorroborated and self-serving, and accorded deference to the RTC’s credibility determinations.

Best Evidence Rule and Exception for Nonproduction of Original

Addressing the CA’s reliance on the Best Evidence Rule under Section 3, Rule 130, the Court analyzed the exception permitting secondary evidence when the original has been lost, destroyed, or cannot be produced without bad faith on the offeror. The Court found that BPI satisfied the three requisites for the exception: (a) the parties admitted the existence of the original check; (b) BPI explained the nonproduction by showing the original had been confiscated by the United States government due to alteration; and (c) there was no showing of bad faith on BPI’s part. Given these facts, the Court held that presentation of the photocopy of the subject check as secondary evidence was permissible.

Electronic Evidence and the E-mail Printout

The Court acknowledged that the e-mail printout from Bankers Trust may not have been authenticated strictly in accordance with the Rules on Electronic Evidence. The Court nonetheless treated the e-mail as corroborative rather than dispositive evidence. It held that the possible inadmissibility of that electronic printout did not vitiate the probative value of the other competent evidence—namely, the promissory note and respondents’ signed correspondence and the admissible photocopy of the check. The Court also noted that respondents did not object to BPI’s formal offer of evidence and t

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