CITYTRUST BANKING CORPORATION, vs. THE INTERMEDIATE APPELLATE COURT and EMME HERRERO.
- G.R. Number: G.R. No. 84281
- Promulgated: 1994-05-27
- Ponente: Vitug, J.
Doctrine
Banks, as businesses affected with public interest, owe depositors meticulous care and utmost fidelity in recording and handling accounts; errors may cause embarrassment, loss, or litigation.
Nominal damages vindicate a violated right and are not meant to indemnify for loss; nominal and temperate damages are incompatible and should not be awarded together.
Facts
Private respondent Emme Herrero deposited regularly with Citytrust; on 15 May 1980 she deposited P31,500 in cash to cover six postdated checks she issued.
Trial court dismissed Herrero's complaint and awarded costs and attorney's fees to the bank.
Court of Appeals reversed, awarding nominal damages P2,000, temperate damages P5,000, and attorney's fees P4,000; it dismissed the bank's counterclaim.
Citytrust petitioned the Supreme Court for review on certiorari.
Issues
Whether the depositor is entitled to damages for the bank's mishandling of her account and dishonor of checks.
Whether nominal and temperate (moderate) damages may be awarded concurrently.
Ruling
The Court modified the Court of Appeals' decision by deleting the award of temperate/moderate damages but affirmed the remainder: nominal damages of P2,000 and attorney's fees of P4,000; no costs.
The bank's counterclaim remained dismissed by the appellate court.
Keywords
G.R. No. 84281 (May 27, 1994), complaint for damages, postdated checks, insufficient funds, Regional Trial Court (Branch XXXIV) of Calamba, Laguna, attorney's fees, Court of Appeals, nominal damages, temperate and moderate damages, petition for review on certiorari, current account deposits, liability for loss due to an incorrect account number, business impressed with public interest, suspense accounts, negligence, Mundin v. Far East Bank & Trust Co., AC-G.R. CV No. 03639 (Nov. 2, 1985), Simex International (Manila), Inc. vs. Court of Appeals, 183 SCRA 360, deposit, private, defendant