Title
United Coconut Planters Bank vs. Basco
Case
G.R. No. 142668
Decision Date
Aug 31, 2004
A terminated UCPB employee, also a stockholder and depositor, challenged a bank memo barring him from premises; SC ruled the memo overly broad but denied damages.

Case Summary (G.R. No. 182946)

Employment Background

Ruben E. Basco was employed by UCPB as a Bank Operations Manager for seventeen years and was a stockholder with ownership of 804 common shares. In addition to his role at UCPB, he worked as an underwriter for United Coconut Planters Life Association (Coco Life) since December 1992, soliciting insurance policies from bank employees. Basco's employment was terminated on June 19, 1995, based on allegations of grave abuse of authority and breach of trust. Following his dismissal, he filed complaints for illegal dismissal and damages with the National Labor Relations Commission (NLRC).

Legal Dispute

Despite the ongoing legal proceedings, Basco continued to conduct business at UCPB, soliciting insurance from employees. In a memorandum dated November 15, 1995, UCPB instructed to bar Basco from the bank premises due to the pending cases and his prior dismissal. On December 7, 1995, Basco, through counsel, requested reconsideration of his exclusion, but UCPB maintained that the memorandum was necessary for maintaining confidentiality and security.

Incidents of Restriction

On January 31, 1996, while attempting to conduct business with the bank, Basco was approached by security personnel and asked to leave based on the aforementioned memorandum. He sought to retrieve a check and deposit some money while sitting on a sofa in the lobby area. When he attempted to approach bank employee Jose Regino Casil, security intervened, resulting in Basco’s complaint for damages against UCPB and Ongsiapco for humiliation and violation of his rights as a stockholder and depositor.

Legal Proceedings

The RTC ruled in favor of Basco, awarding him damages and ordering the rescission of the memorandum barring him from bank premises, concluding that UCPB acted abusively. The bank’s appeal to the Court of Appeals sought to overturn this decision, questioning the actions taken under the memorandum, the classification of damages, and the legitimacy of a counterclaim for damages due to Basco's previous litigation against them.

Appellate Court Ruling

On March 30, 2000, the Court of Appeals modified the RTC ruling, removing the awards for moral and exemplary damages but granting nominal damages of P25,000 for UCPB’s excessive use of self-help when they barred Basco from accessing the ATM area. The appellate court reasoned that the security personnel should have waited to ensure Basco entered the restricted area before intervening.

Issues Presented

Before the Supreme Court, the petitioners raised issues regarding excessive self-help measures taken by the bank, the award of nominal damages, and the validity of their counterclaim.

Supreme Court's Findings

The Supreme Court affirmed that UCPB had a right to protect its premises under Article 429 of the New Civil Code, which allows a lawful possessor to exclude others to maintain security. However, this right could not be interpreted as an abso

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