Case Digest: Allied Banking Corp. vs. BPI, 692 SCRA 186

Allied Banking Corp. vs. BPI, 692 SCRA 186

Subject: Obligations and Contracts

FACTS

On October 10, 2002, a check in the amount of P1,000,000.00 payable to Mateo Mgt. Group International (MMGI) was presented for deposit and accepted at Allied Banking Corporation's (ABC) Kawit Branch.

The check, post-dated "Oct. 9, 2003," was drawn against the account of Marciano Silva, Jr. (Silva) with respondent Bank of the Philippine Islands (BPI) Bel-Air Branch. Upon receipt, ABC sent the check for clearing to BPI through the Philippine Clearing House Corporation (PCHC). The check was cleared by BPI and ABC credited the account of MMGI with P1,000,000.00.

On October 22, 2002, MMGI's account was closed, and all the funds therein were withdrawn. A month later, Silva discovered the debit of P1,000,000.00 from his account. In response to Silva's complaint, BPI credited his account with the aforesaid sum.

On March 21, 2003, BPI returned a photocopy of the check to ABC for the reason: "Postdated." ABC, however, refused to accept and sent back to BPI a photocopy of the check. Thereafter, the check, or more accurately, the Charge Slip, was tossed several times from BPI to ABC, and back to BPI, until on May 6, 2003, BPI requested the PCHC to take custody of the check.

Acting on the request, PCHC directed the BPI to deliver the original check and informed it of PCHC's authority under Clearing House Operating Memo (CHOM) No. 001-96. BPI refused to comply with PCHC's directive, prompting PCHC to file a complaint for injunction with damages against BPI.

The RTC dismissed PCHC's complaint, but the CA reversed the RTC's decision. The CA held that BPI was negligent in failing to return the check to ABC within the 24-hour reglementary period, and that such negligence was the proximate cause of the loss sustained by ABC.

BPI appealed to the Supreme Court.

ISSUE

Whether or not BPI was negligent in this case.

RULING

Yes. The Supreme Court affirmed the CA's decision. The Court held that BPI was indeed negligent in failing to return the check to ABC within the 24-hour reglementary period. The Court found that BPI had actual knowledge that the check was post-dated, and that it should have exercised more caution in handling the check. The Court also found that BPI's negligence was the proximate cause of the loss sustained by ABC. The Court held that ABC was also negligent in accepting the post-dated check for deposit. However, the Court found that ABC's negligence was not the proximate cause of the loss. The Court reasoned that even if ABC had not accepted the check for deposit, Silva would have still been able to withdraw the funds from his account on October 22, 2002, because MMGI's account was closed on that date. In the end, the Court held that BPI was liable to ABC for the amount of P1,000,000.00.