BANK OF THE PHILIPPINE ISLANDS, vs. THE HON. COURT OF APPEALS (SEVENTH JUDICIAL), HON. JUDGE REGIONAL TRIAL COURT OF MAKATI, BRANCH 59, CHINA BANKING CORP., and PHILIPPINE CLEARING HOUSE CORPORATION.
- G.R. Number: G.R. No. 102383
- Promulgated: 1992-11-26
- Ponente: Gutierrez, Jr., J.
Doctrine
Banks are liable under Article 2179 for damages where gross negligence in selection and supervision of employees contributes to fraud and loss; comparative negligence justifies apportionment of loss between banks.
Failure of a drawee bank to require surrender of promissory notes may be a significant lapse contributing to fraud; the issue is whether omission was a necessary ingredient in the success of the fraud, not merely payment validity.
The proximate cause inquiry focuses on foreseeability and sequence of events; delays between issuance, delivery, and encashment do not preclude finding proximate causation when intervening acts were natural and expected.
Facts
BPI appealed the PCHC arbitration decision and subsequent Court of Appeals ruling affirming the RTC's dismissal of BPI's petition and ordering BPI to pay CBC P1,206,607.58; PCHC was directed to debit/credit clearing accounts accordingly.
The dispute arose from forged/negotiated checks allegedly involving impersonation of the payee and questions about surrender of promissory notes and earlier endorsements during clearing.
The RTC found both banks negligent in employee selection and supervision; it apportioned loss and costs between BPI and CBC and modified prior rulings accordingly.
Issues
Whether a collecting bank's presentation of checks for clearing and payment warrants the validity of all prior endorsements stamped on the checks.
Whether the drawer/drawee bank (BPI) may claim reimbursement from the collecting bank (CBC) after CBC received proceeds of checks cleared through PCHC when the payee's signature is forged.
Ruling
The Court modified the CA decision: both banks were negligent and the loss of P2,413,215.16 and arbitration costs are apportioned 60% to BPI and 40% to CBC; PCHC to effect corresponding clearing entries.
No interest or attorney's fees awarded; costs of suit assessed proportionately as specified in the judgment and arbitration costs allocated in the stated ratio.