FAR EAST BANK v. CA FACTS: Luna applied for, and was accorded, a FAREASTCARD issued b pe!!oner Far Eas" Ban# and Trus" Co$pan %&FEBTC&' a" i"s (asi) Branc*. +pon *is reues", "*e ban# also issued a supple$en"al card "o priva"e responden" Clari"a S. Luna. Clari"a los" *er card. T*e ban#-s in"ernal securi" procedures and polic would appear "o be "o $eanw*ile so record "*e los" card, alon) wi"* "*e principal card, as a &o" Card& or &Cancelled Card& in i"s $as"er /le.
Topic Topic 11: Responsibility from negligence
CASE 31
Luis "endered a despedida lunc* for a c lose friend, a Filipino0A$erican, and ano"*er )ues" a" "*e Ba*ia Roo1op Res"auran" of "*e o"el 2n"ercon!nen"al 3anila. T*e card was no" *onored, Luis was forced "o pa in cas* "*e bill a$oun!n) "o (455.67. Na"urall, Luis fel" e$barrassed b "*is inciden".
Luis Luna, " *rou)* counsel, de$anded fro$ FEBTC "*e pa$en" of da$a)es. Adrian 8. Fes"e9o, a vice0 presiden" of "*e ban#, e:pressed "*e ban#;s apolo)ies "o Luis. Fes"e9o also sen" a le
FACTSG
RTC - >rdered FEBTC "o pa priva"e responden"s %a' (7??,???.?? $oral da$a)es@ %b' (4?,???.?? e:e$plar da$a)es@ and %c' (?,???.?? a
-.(R( !o( 1/01/( September /2% 14
So$e!$e prior "o 7 >c"ober 6HH? priva"e responden" Lil S. (u9ol opened wi"* pe!!oner (NB 3andaluon) an accoun" deno$ina"ed as &Co$bo Accoun",& a co$bina!on of Savin)s Accoun" and Curren" Accoun" in priva"e responden";s business na$e &(u9ol Tradin),& under w*ic* c*ec#s drawn a)ains" priva"e responden"s c*ec#in) accoun" could be c*ar)ed a)ains" *er Savin)s Accoun" s*ould "*e funds in *er Curren" Accoun" be insucien" "o cover "*e value of *er c*ec#s. ence, priva"e responden" was issued b pe!!oner a passboo# on "*e fron" cover of w*ic* was "pewrin 7 and I >c"ober 6HH?, priva"e responden" issued a c*ec# in "*e a$oun" of (7?,???.?? eac* in favor of *er dau)*"er0in0law, dau)*"er0in0law, Dr. C*arisse 3. (u9ol and dau)*"er 8enus De >ca$po, respec!vel. respec!vel.
ISSUE: =>N $oral and e:e$plar da$a)es will be awarded "o Luna HELD: No. SC /nds, "*erefore, "*e award of $oral da$a)es $ade b "*e cour" a uo, ar$ed b "*e appella"e cour", "o be inordina"e and subs"an!all devoid of le)al basis. T*e ban# was re$iss in indeed ne)lec!n) "o personall infor$ Luis of *is own card-s cancella!on. No"*in) in "*e /ndin)s of "*e "rial cour" and "*e appella"e cour", *owever, can sucien"l indica"e an delibera"e in"en" on "*e par" of FEBTC "o cause *ar$ "o priva"e responden"s. Nei"*er could FEBTC;s ne)li)ence in failin) "o )ive personal no!ce "o L uis be considered so )ross as "o a$oun" "o $alice or bad fai"*.
&;Ar". 6.=*oever b ac" or o$ission causes da$a)e "o ano"*er, "*ere bein) faul" or ne)li)ence, is obli)ed "o pa for "*e da$a)e done. Suc* faul" or ne)li)ence, if "*ere is no pre0e:is!n) con"rac"ual rela!on be"ween "*e par!es, is called a uasi0delic" and is )overned b "*e provisions of "*is C*ap"er.; &T*e dis!nc!on be"ween fraud, bad fai"* or $alice in "*e sense of delibera"e or wan"on wron) doin) and ne)li)ence %as $ere carelessness' is "oo funda$en"al in our law "o be i)nored %Ar"s. 66?066'@ "*eir conseuences bein) clearl dieren!a"ed b "*e Code.
=*en issued and presen"ed for pa$en", priva"e responden" *ad sucien" funds in *er Savin)s Accoun". owever, owever, pe!!oner dis*onored *er c*ec# alle)edl for insucienc of funds and debi"ed *er accoun" wi"* (4??.?? as penal" c*ar)e %(4? eac* per c*ec# "ransac!on'. >n I Nove$ber 6HH?, a1er realiJin) i"s $is"a#e, pe!!oner accep"ed and *onored "*e second c*ec# for (7?,???.?? and re0credi"ed "o priva"e responden"s accoun" "*e (4?.?? previousl debi"ed as penal". (riva"e responden" Lil S. (u9ol /led wi"* (asi) RTC a co$plain" for $oral and e:e$plar da$a)es a)ains" a)ains" pe!!oner for dis*onorin) *er c*ec#s despi"e sucienc of *er funds in "*e ban#. (e!!oner ban# ad$in Sep"e$ber 6HHI "*e "rial cour" %RTC' rendered a decision orderin) pe!!oner "o pa priva"e responden" (u9ol $oral da$a)es of (6??,???.?? and a
E:e$plar or correc!ve da$a)es, in "urn, are in"ended "o serve as an e:a$ple or as correc!on for "*e public )ood in addi!on "o $oral, "e$pera"e, liuida"ed or co$pensa"or da$a)es. 2n con"rac"s and uasi0con"rac"s, "*e cour" $a award e:e$plar da$a)es if "*e defendan" is found "o *ave ac"ed in a wan"on, fraudulen", rec#less, oppressive, or $alevolen" $anner. $anner.
=EREF>RE, "*e pe!!on for review is )iven due course. T*e appealed decision is 3>D2F2ED b dele!n) "*e award of $oral and e:e$plar da$a)es "o priva"e responden"s@ in i"s s"ead, pe!!oner is ordered "o pa priva"e responden" Luis A. Luna an a$oun" of (4,???.?? b wa of no$inal da$a)es. 2n all o"*er respec"s, "*e appealed decision is AFF2R3ED. No cos"s.
=N "*e appella"e cour" %CA' erred in *oldin) "*a" pe!!oner was es"opped fro$ denin) "*e e:is"ence of a &C o$bo Accoun"& and "*e fac" "*a" i" was opera!onal a" "*e !$e of "*e issuance of "*e c*ec#s in no" *oldin) "*a" " *e award b "*e "rial cour" of $oral da$a)es of (6??,???.?? and a
=e canno" sus"ain pe!!oner. pe!!oner.
Al"*ou)* pe!!oner presen"ed evidence before "*e "rial cour" "o prove "*a" "*e arran)e$en" was no" e" opera!onal a" "*e !$e responden" issued "*e "wo c*ec#s, i" failed "o prove "*a" s*e *ad ac"ual #nowled)e "*a" i" was no" e" opera!onal a" " *e !$e s*e issued "*e c*ec#s considerin) "*a" "*e passboo# in *er Savin)s Accoun" alread indica"ed "*e words &Co$bo Deposi" (lan.&
>n Sep"e$ber 6HHI "*e "rial cour" %RTC' rendered a decision orderin) pe!!oner "o pa priva"e responden" (u9ol $oral da$a)es of (6??,???.?? and a
ence, responden" (u9ol *ad 9us!/able reason "o believe "*a" *er accoun"s were eec!vel covered b "*e arran)e$en" durin) "*e issuance of "*e c*ec#s. Ei"*er b i"s own delibera"e ac", or i"s ne)li)ence in causin) "*e &Co$bo Deposi" (lan& "o be placed in "*e passboo#, pe!! oner is considered es"opped "o den "*e e:is"ence of and perfec!on of "*e co$bina!on deposi" a)ree$en" wi"* responden" (u9ol.
ISSUE:
A ban# is under obli)a!on "o "rea" "*e accoun"s of i"s deposi"ors wi"* $e!culous care w*e"*er suc* accoun" consis"s onl of a few *undred pesos or of $illions of pesos. Responsibili" arisin) fro$ ne)li)ence in "*e perfor$ance of ever #ind of obli)a!on is de$andable. =*ile pe!!oners ne)li)ence in "*is case $a no" *ave been a
CA ar$ed RTC decision in "o"o.
=N "*e appella"e cour" %CA' erred in *oldin) "*a" pe!!oner was es"opped fro$ denin) "*e e:is"ence of a &C o$bo Accoun"& and "*e fac" "*a" i" was opera!onal a" "*e !$e of "*e issuance of "*e c*ec#s in no" *oldin) "*a" " *e award b "*e "rial cour" of $oral da$a)es of (6??,???.?? and a
RTC and CA decision ar$ed. =e canno" sus"ain pe!!oner.
Al"*ou)* pe!!oner presen"ed evidence before "*e "rial cour" "o prove "*a" "*e arran)e$en" was no" e" opera!onal a" "*e !$e responden" issued "*e "wo c*ec#s, i" failed "o prove "*a" s*e *ad ac"ual #nowled)e "*a" i" was no" e" opera!onal a" "*e !$e s*e issued "*e c*ec#s considerin) "*a" "*e passboo# in *er Savin)s Accoun" alread indica"ed "*e words &Co$bo Deposi" (lan.& ence, responden" (u9ol *ad 9us!/able reason "o believe "*a" *er accoun"s were eec!vel covered b "*e arran)e$en" durin) "*e issuance of "*e c*ec#s. Ei"*er b i"s own delibera"e ac", or i"s ne)li)ence in causin) "*e &Co$bo Deposi" (lan& "o be placed in "*e passboo#, pe!!oner is considered es"opped "o den "*e e:is"ence of and perfec!on of "*e co$bina!on deposi" a)ree$en" wi"* responden" (u9ol.
-.(R( !o( 1/01/( September /2% 14
FACTSG So$e!$e prior "o 7 >c"ober 6HH? priva"e responden" Lil S. (u9ol opened wi"* pe!!oner (NB 3andaluon) an accoun" deno$ina"ed as &Co$bo Accoun",& a co$bina!on of Savin)s Accoun" and Curren" Accoun" in priva"e responden";s business na$e &(u9ol Tradin),& under w*ic* c*ec#s drawn a)ains" priva"e responden"s c*ec#in) accoun" could be c*ar)ed a)ains" *er Savin)s Accoun" s*ould "*e funds in *er Curren" Accoun" be insucien" "o cover "*e value of *er c*ec#s. ence, priva"e responden" was issued b pe!!oner a passboo# on "*e fron" cover of w*ic* was "pewrin 7 and I > c"ober 6HH?, priva"e responden" issued a c*ec# in " *e a$oun" of (7?,???.?? eac* in favor of *er dau)*"er0in0law, Dr. C*arisse 3. (u9ol and dau)*"er 8enus De >ca$po, respec!vel. =*en issued and presen"ed for pa$en", priva"e responden" *ad sucien" funds in *er Savin)s Accoun". owever, pe!!oner dis*onored *er c*ec# alle)edl for insucienc of funds and debi"ed *er accoun" wi"* (4??.?? as penal" c*ar)e %(4? eac* per c*ec# " ransac!on'. >n I Nove$ber 6HH?, a1er realiJin) i"s $is"a#e, pe!!oner accep"ed and *onored "*e second c*ec# for (7?,???.?? and re0credi"ed "o priva"e responden"s accoun" "*e (4?.?? previousl debi"ed as penal". (riva"e responden" Lil S. (u9ol /led wi"* (asi) RTC a co$plain" for $oral and e:e$plar da$a)es a)ains" pe!!oner for dis*onorin) *er c*ec#s despi"e sucienc of *er funds in "*e ban#. (e!!oner ban# ad$i
A ban# is under obli)a!on "o "rea" "*e accoun"s of i"s deposi"ors wi"* $e!culous care w*e"*er suc* accoun" consis"s onl of a few *undred pesos or of $ill ions of pesos. Responsibili" arisin) fro$ ne)li)ence in "*e perfor$ance of ever #ind of obli)a!on is de$andable. =*ile pe!!oners ne)li)ence in "*is case $a no" *ave been a
S)mson 's CA( .R !o( 152/6
Fac"sG
(riva"e responden" An)el San"os is "*e lessee of a co$$ercial uni" in 3adri)al Buildin) owned b lessor, SusanaReal" Corpora!on. Lessee-s s"ore occupied "*e said buildi n) for ? ears wi"* "*e con"rac" of lease renewed ever ear. A1er "*e e:pira!on of "*e lease con"rac", lessor infor$ed lessee "*a" "*e won" be renewin) said con"rac" bu" was e:"ended fro$ ul 6H5I "o Dece$ber 6H5I. Lessee con!nued "o occ up said uni" even a1er "*e e:"ension )iven and was infor$ed on Februar 6H54 "*a" "*ere would be an increase in "*e said ren"als pendin) "*e renewal of said con"rac" un!l one of "*e owners of "*e buildin) arrives. erein pe!!oner, Sa$son, en"ers in"o a con"rac" wi"* San"os "o bu said s"ore and "*e ri)*" "o lease "*e co$$ercial uni". San"os $ade a coun"er proposal wi"* one of "*e condi!ons bein) "*a" "*e lease con"rac" be"ween San"os and Susana Real" Corpora!on be i$pliedl renewed since s*e is s!ll wai!n) for one of "*e owners "o arrive on "*e sa$e $on"*. (e!!oner a)reed and si)n "*e con"rac" in w*ic* *e $ade a downpa$en" of
(64?# for "*e value of "*e e:is!n) i$prove$en"s of "*e s"ore and "*e re$ainin) (64?# as balance will be paid upon "*e for$al renewal of "*e lease of conrac" be"ween San"os and Susana Real" Corp. owever, a1er a few $on"*s, pe!!oner received a no!ce "o vaca"e "*e pre$ises of "*e uni" since priva"e responden" failed "o renew said con"rac" of lease. (e!!oner /led an ac!on for da$a)es in w*ic* RTC ruled in favor of "*e pe!!oner. +pon appeal, CA $odi/ed decision of RTC, w*erein i" favored priva"e responden" as CA saw no bad fai"* or fraud in *er dealin)s wi"* pe!!oner and ar$ed wi"* respec" "o RTC-s decision "o re"urn "o appellee said s"ore $a"erials.
2ssueG =>N priva"e responden" e:ercised bad fai"* or fraud in i"s dealin)s wi"* "*e pe!!oner speci/call on "*e con"rac" of lease over "*e sub9ec" pre$ises "*a" *as been i$pliedl renewed b Susana Real"
Rulin)G Cour" ruled in favor of priva"e responden", dis$issin) "*e pe!!on. MroundsG ri')te respon*ent not g7ilty of fr)7* or b)* f)it8 b clai$in) "*a" "*e con"rac" of lease *as been i$pliedl renewed because pe!!oner was also aware "*a" said con"rac" alread e:pired bu" pendin) renewal un!l one of "*e owners arrives. (e!!oner #nows "*a" as far as "*e lease*old ri)*" i s concerned, i" is a fu"ure ri)*" w*ic* *as e" "o $a"erialiJe un!l suc* !$e "*a" a for$al renewal of "*e said con"rac" be"ween San"os and Susana Real" *as been acco$plis*ed. e&&oner f)ile* to e9ercise *7e *iligence in verifin) /rs" "*e s"a"us of "*e responden"-s lease w*en *e *ad ever oppor"uni" "o do so. e could *ave veri/ed i" wi"* Susana Real" bu" was no" able "o do so. e canno" clai$ *e *as been deceived.
PEDRO D. DIOQUINO VS. LAUREANO G.R. No. L-25906 May 28, 1970 FA!S"