Vicente Go v. v. Metropolitan Bank and Trust Co. August 11, 2010 | Nachura, J. | Digester: Villafuerte, Beatriz C. SUMMARY: Go, ower of !o"e #har$ac%, &le' co$"laits for su$s of $oe% agaist his e$"lo%ees, Chua a' (a)aag a' *etro)a+ for uauthorize' 'e"osits a' ecash$ets of 2 crosse' chec+s "a%a)le to !o"e #har$ac%, i the su$ of #1.-*. / the (C a' CA, it was hel' that Chua a' (a)aag were ot lia)le for the ecash$ets, sice the "rocee's of the chec+s were use' as "a%$ets for loas of Go fro$ the "arets of Chua. (he ol% issue left for resolutio i the C was whether *etro)a+ was lia)le for egligece for ecashig t he su)ect crosse' chec+s. (he Court hel' that *etro)a+ was egliget for allowig the 'e"osit of crosse' chec+s which were issue' i fa3or a' "a%a)le to "etitioer a' without )eig i'orse' )% the "etitioer to the accout of Chua. DOCTR!": (he crossig of a chec+ is a warig that the chec+ shoul' )e 'e"osite' ol% i the accout of the "a%ee. (hus, it is the 'ut% of the collectig )a+ to ascertai that the chec+ )e ' e"osite' to the "a%ee4s accout ol%. ol%.
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#ACTS: #etitioer &le' 2 se"arate cases )efore (C Ce)u Ci3il Case C5B 617 agaist *a. (eresa Chua 8Chua9 a' o Gl%'ah (a)aag 8(a)aag9 for a su$ of $oe% Ci3il Case C5B ;;7 agaist *etro"olita Ba+ a' (rust o Co$"a% a' Chua for a su$ of $oe% with 'a$ages #etitioer is 'oig )usiess u'er the a$e !o"e #har$ac% which sells $e'icie i the Cit% of Ce)u. !e ha' i his e$"lo% the followig "ersos: o Chua7 "har$acist a' trustee or careta+er of the )usiess o (a)aag7 too+ care of the recei"ts a' i3oices a' assi ste' Chua i $a+ig 'e"osits for "etitioer4s accouts i )usiess o"eratios of !o"e #har$ac%
C5B761 (here were uauthorize' 'e"osits a' ecash$ets $a'e )% Chua a' (a)aag i the total a$out of #10,-.0. <5B(C Chec+ No. 2=1111 was issue' )% " etitioer4s custo$er >o% >i)oro i the "a%$et of the stoc+s "urchase' was 'e"osite' to a *etroBa+ a3igs Accout )elogig to the 'efe'at Chua.
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CBC Chec+s Nos. 0= a' 2-=1= , which were i )la+ )ut "re7sige' )% "etitioer for co3eiece ite'e' for "a%$et to his su""liers, were &lle' u" a' 'ate' e"te$)er 22, 10 a' e"te$)er 6, 10 i the a$out of #0,000 a' #=0,000 res"ecti3el% a' were 'e"osite' with ' efe'at Chuas aforestate' accout with *etro)a+. #BC Chec+ No. 00=6- 'raw )% 5liza)eth 5ri?uez "a%a)le to the !o"e #har$ac% i the a$out of #;,6 .0 was ecashe' )% the 'efe'at Gl%'ah (a)aag (here were uauthorize' 'e"osits a' ecash$ets i the total su$ of #10,-.0. C5B ;; (here were 2 chec+s with !o"e #har$ac% as "a% ee, for 3ar%ig su$s, a$outig to #1,-2,==.0; that were ot e'orse' )% hi$ )ut were 'e"osite' u'er the "ersoal accout of Chua with *etro)a+. (he sai' chec+s were crossed c$ecks pa%a&le to 'ope ($ar)ac% onl% #etitioer a3ers that without the "artici"atio a' coi3ace of res"o'et )a+, te chec+s coul' ot ha3e )ee acce"te' for 'e"osit to a% other accout, e@ce"t "etitioer4s accout. (C (C re'ere' a oit 'ecisio. Dis$isse' co$"lait agaist Chua a' (a)aag i C5B 61 as wells as co$"lait agaist Chua i C5B ; ; *etro)a+ i C5B ;; was or'ere' to "a% Go the a$out of #=0,000 as $oral 'a$ages a' attore%4s fees of #2=,000 atio of (C: A&solved C$ua )ecause the su)ect chec+s i C5B No. ;; o were "a%$ets of "etitioer for his loas fro$ the "arets of Chua, through Chua, who was gi3e the total 'iscretio )% "etitioer to trasfer $oe% fro$ the oices of !o"e #har$ac% to "a% the a'3aces a' other o)ligatios of the 'rugstore she was also gi3e the full 'iscretio where to source the fu's to co3er the 'ail% o3er'rafts, e3e to the e@tet of )orrowig $oe% with iterest fro$ other "ersos o Declared Metro&ank lia&le *or &ein+ ne+li+ent i allowig the 'e"osit of crosse' chec+s without the "ro"er i'orse$et. CA air$e' the (C 'ecisio.
RU,!G: Decision a-ir)ed. Metro&ank is lia&le *or ne+li+ence. $et$er Metro&ank is lia&le *or allo/in+ t$e deposit o* crossed c$ecks /$ic$ /ere issued in *avor and pa%a&le to petitioner and /it$out &ein+ indorsed &% t$e petitioner to t$e account o* C$ua0Y"S. Metro&ank is lia&le.
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Crosse' chec+s A chec+ is a )ill of e@chage 'raw o a )a+ "a%a)le o 'e$a'. A crosse' chec+ is oe where two "arallel lies are 'raw across its face or across the cor er thereof. /t $a% crosse' geerall% or s"eciall%. A chec+ is crosse' s"eciall% whe the a$e of a "articular )a+er or co$"a% is writte )etwee the "arallel lies 'raw. /t is crosse' geerall% whe ol% the wor's a' co$"a% are writte or othig is writte at all )etwee the "arallel lies. /t $a% )e issue' so that "reset$et ca )e $a'e ol% )% a )a+. Juris"ru'ece has "roouce' that crossig of a chec+ has the followig eects: a9 (he chec+ $a% ot )e ecashe' )ut ol% 'e"osite' i the )a+ )9 (he chec+ $a% )e egotiate' ol% oce to oe who has a accout with a )a+ a' c9 (he act of crossig the chec+ ser3es as warig to the hol'er that the chec+ has )ee issue' for a 'e&ite "ur"ose so that he $ust i?uire if he has recei3e' the chec+ "ursuat to that "ur"ose, otherwise, he is ot a hol'er i 'ue course. (he Court has ta+e u'icial cogizace of the "ractice that a chec+ with 2 "arallel lies i the u""er left ha' corer $eas that it coul' ol% )e 'e"osite' a' ot co3erte' ito cash. (he eect of crossig a chec+, thus, relates to the $o'e of "a%$et, $eaig that the 'rawer ha' ite'e' the chec+ for 'e"osit ol% )% the rightful "erso, i.e., the "a%ee a$e' therei. (he crossig of a chec+ is a warig that the chec+ shoul' )e 'e"osite' ol% i the accout of the "a%ee. (hus, it is the 'ut% of the collectig )a+ to ascertai that the chec+ )e ' e"osite' to the "a%ee4s accout ol%. As a""lie' i the istat case (here is o 'is"ute that the su)ect 2 chec+s were crosse' chec+s with "etitioer a$es as "a%ee.
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Ba+ has lia)ilit%. /t was egliget i " er$ittig the 'e"osit a' ecash$et of the crosse' chec+s without "ro"er i'ors e$et 5@tet of lia)ilit% of the )a+ #etitioer: )a+ shoul' )e accouta)le for the etire a$out of the chec+s )ecause it acce"te' the chec+s for 'e"osit u'er Chua4s accout 'es"ite the fact that the chec+s were crosse' a' that the "a%ee a$e' therei was ot Chua es"o'et: "etitioer is ot etitle' to the rei$)urse$et of the total su$ of #1.-* f ro$ either Chua or the Ba+ sice "etitioer was ot 'a$age' there)%. Court: es"o'et4s cotetio is $eritorious. Ba+ shoul' ot )e lia)le for the etire a$out. (he chec+s were actuall% gi3e to Chua was "a%$ets )% "etitioers for loas o)taie' fro$ the "arets of Chua. #etitioer4s o7iclusio of Chua a' (a)aag i the "etitio )efore the Court is a a'$issio )% "etitioer that Chua, i re"resetatio of her "arets, ha' rightful clai$ to the "rocee's of the chec+s. #etitioer suere' o "ecuiar% loss i the 'e"osit of the chec+s to the accout of Chua. es"o'et )a+ was egliget i "er$ittig the 'e"osit a' ecash$et of the crosse' chec+s without the "ro"er i'orse$et Ba+ lia)le for $oral 'a$ages Ba+ "resete' Joatha Da3is as witess. !e was the E/C a' ra+e' seco' to the V# of the )a+ at the ti$e $aterial to this case. !e allowe' Chua to 'e"osit the chec+s su)ect of this o litigatio which were "a%a)le to !o"e #har$ac% !e sai' it was a "ri3ilege gi3e to 3alue' custo$ers o a o highl% selecti3e case to case )asis, for $ar+etig "ur"oses, )ase' o trust a' co&'ece. o Chua tol' hi$ that those chec+s )eloge' to her as "a%$et for the a'3aces she e@te'e' to GoF!o"e #har$ac%. o *etro)a+ ga3e the "ri3ilege to Chua. (he arrage$et wet o for a)out %ears, without a% co$"lait fro$ GoF !o"e #har$ac% Chua $a'e a warrat that she woul' rei$)urse *etro)a+ if o Go co$"laie'. !e 'i' ot call or ifor$ Go a)out this arrage$et, )ecause o )eig a Chiese )a+, trasactios are )ase' o trust a'
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co&'ece, a' for hi$ to ifor$ Go a)out it, was tata$out to ?uestioig the itegrit% of their cliet, Chua. A i'orse$et is ecessar% for the "ro"er egotiatio of chec+s s"eciall% if the "a%ee a$e' therei or hol'er thereof is ot the oe 'e"ositig or ecashig it. owig full% well that su)ect chec+s were crosse', that the "a%ee was ot the hol'er a' that the chec+s cotaie' o i'orse$et, res"o'et )a+ shoul' ha3e ta+e reasoa)le ste"s i or'er to 'eter$ie the 3ali'it% of the re"resetatios $a'e )% Chua.
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es"o'et )a+ was a$iss i its 'ut% as a aget of the "a%ee. #ru'ece 'ictates that res"o'et )a+ shoul' ot ha3e $erel% relie' o the assuraces gi3e )% Chua. (he law i$"oses a 'ut% of e@traor'iar% 'iligece o the collectig )a+s to scrutiize chec+s 'e"osite' with it, for the "ur"ose of 'eter$iig their geuieess a' regularit%. As a )usiess aecte' with "u)lic iterest a' )ecause of the ature of its fuctios, the )a+s are u'er o )ligatio to treat the accouts of its 'e"ositors with $eticulous case, alwa%s ha3ig i $i' the &'uciar% ature of the relatioshi".
