DBP vs. CA 449 SCRA 57 DEVELOPMENT BANK OF THE PHILIPPINES, petitioner vs. Court of Appe!s n" t#e ESTATE OF THE LATE $%AN B. DANS, represente" &' CANDIDA (. DANS, n" t#e DBP MO)T(A(E )EDEMPTION INS%)ANCE POOL, respon"ents.
FACTS* Juan B. Dans, 76 years of age, together with his fai!y, a""!ie# for a !oan worth Ph" 5$$, $$$ at the Deve!o"ent Ban% of the Phi!i"""ines on &ay '9(7. )he !oan was a""rove# *y the *an% #ate# August 4, '9(7 *ut in the re#u+e# aount of Ph" $$, $$$. &r. Dans was a#vise# *y DBP to o*tain a ortgage re#e"tion insuran+e at DBP &R"oo!. DBP #e#u+te# the aount to *e "ai# for &R- Preiu that is worth Ph" '476.$$. )he insuran+e of &r &r.. Dans, !ess the DBP servi+e fee of '$, was +re#it +re#ite# e# *y DBP D BP to the savings a++ount of DBP &R-/Poo!. A++or#ing!y, the DBP &R- Poo! was a#vise# of the +re#it. 0n Se"te*er , '9(7, &r &r.. Dans #ie# of +ar#ia+ arrest. DBP &R- noti1e# DBP was not e!igi*!e for the +overage of insuran+e for he was *eyon# the a2iu age of 6$. )he wife, Can#i#a, 1!e# a +o"!aint to the Regiona! )ria! Court Bran+h - Basi!an against DBP an# DBP &R- "oo! for 3Co!!e+tion of Su of &oney with Daages. Prior to that, DBP oere# oere# the a#inistrat a#inistratri2 ri2 &rs. &rs. Dans a refun# of the &R- "ayent "ayent *ut she refuse# for insisting that the fai!y of the #e+ease# ust re+eive the aount e8uiva!ent of the !oan. DBP a!so oere# an# ex gratia for gratia for sett!eent worth Ph" $, $$$. &rs. Dans refuse# to ta%e the oer. )he #e+ision of the R)C ren#ere# in favor of the fai!y of the #e+ease# an# against DBP. DBP. owever, DBP a""ea!e# to the +ourt. ISS%E* :hether or not the DBP &R- Poo! shou!# *e he!# !ia*!e on the groun# that the +ontra+t was a!rea#y "erfe+te#. HELD* ;o. DBP &R- Poo! is not !ia*!e. )hough the "ower to a""rove the insuran+e is !o#ge# to the "oo!, the DBP &R- Poo! #i# not a""rove the a""!i+ation of the #e+ease#. )here was no "erfe+te# "erfe+te# +ontra+t *etween *etween the insuran+e "oo! an# &r. &r. Dans. DBP DB P wa was s we wear arin ing g tw two o !e !ega! ga! ha hats ts<< as a !e !en# n#er er an# in insu sura ran+ n+e e ag agen ent. t. As an insuran+e agent, DBP a#e *e!ieve# that the fai!y a!rea#y fu!1!!e# the re8uireents re8uireents for the sai# insuran+e a!though DBP ha# a fu!! %now!e#ge that the a""!i+ation wou!# never *e a""rove#. DBP a+te# *eyon# the s+o"e of its authority for a++e"ting a""!i+ations for &R-. -f the thir# "erson who +ontra+te# +ontra+te# is unaware unaware of the authority authority +onferre# +onferre# *y the "rin+i"a! on the agent an# he has *een #e+eive#, the !atter is !ia*!e for #aages. )he !iits of the agen+y +arries with it the i"!i+ation that a #e+e"tion was "er"etrate#= Arti+!es '9/>' +oe into "!ay. owever, DBP is not enti owever, entit!e# t!e# to +o" +o"ensate ensate the fai! fai!y y of the #e+ea #e+ease# se# with the entire va!ue of the insuran+e "o!i+y. S"e+u!ative #aages are too reote to *e in+!u#e# in the +ost of #aages. &r. Dans is entit!e# on!y to ora! #aages. Su+h #aages #o not nee# a "roof of "e+uniary !oss for assessent. )he +ourt grante# on!y ora! #aages Ph" 5$, $$$ "!us attorney feess Ph" '$, $$$ an# the rei*urseent of the &R- fees with !ega! interest interest fro the #ate of the 1!ing of the +o"!aint +o"!aint unti! fu!!y "ai#.
