Lawyerly

GR No. 208293

2014-12-10

PHILIPPINE NATIONAL BANK v. CARMELITA S. SANTOS

LEONEN, J.

Similar to common carriers, banking is a business that is impressed with public interest. It affects economies and plays a significant role in businesses and commerce.[86] The public reposes its faith and confidence upon banks, such that "even the humble wage-earner has not hesitated to entrust his life's savings to the bank of his choice, knowing that they will be safe in its custody and will even earn some interest for him."[87] This is why we have recognized the fiduciary nature of the banks' functions, and attached a special standard of diligence for the exercise of their functions.

GR No. 166096

2008-09-11

PHILIPPINE NATIONAL BANK v. RAMON BRIGIDO L. VELASCO

REYES, R.T., J.

As an audit officer, Velasco should be the first to ensure that banking laws, policies, rules and regulations, are strictly observed and applied by its officers in the day-to-day transactions. The banking system is an indispensable institution in the modern world. It plays a vital role in the economic life of every civilized nation. Whether banks act as mere passive entities for the safekeeping and saving of money, or as active instruments of business and commerce, they have become an ubiquitous presence among the citizenry, who have come to regard them with respect and even gratitude and, most of all, confidence.[53]

GR No. 177526

2008-07-04

PHILIPPINE SAVINGS BANK v. CHOWKING FOOD CORPORATION

REYES, R.T., J.

In its declaration of policy, the General Banking Law of 2000[35] requires of banks the highest standards of integrity and performance. Needless to say, a bank is "under obligation to treat the accounts of its depositors with meticulous care.[36] The fiduciary nature of the relationship between the bank and the depositors must always be of paramount concern.[37]

GR No. 123498

2007-11-23

BPI FAMILY BANK v. AMADO FRANCO

NACHURA, J.

Our pronouncement in Simex International (Manila), Inc. v. Court of Appeals[38] continues to resonate, thus:The banking system is an indispensable institution in the modern world and plays a vital role in the economic life of every civilized nation. Whether as mere passive entities for the safekeeping and saving of money or as active instruments of business and commerce, banks have become an ubiquitous presence among the people, who have come to regard them with respect and even gratitude and, most of all, confidence. Thus, even the humble wage-earner has not hesitated to entrust his life's savings to the bank of his choice, knowing that they will be safe in its custody and will even earn some interest for him. The ordinary person, with equal faith, usually maintains a modest checking account for security and convenience in the settling of his monthly bills and the payment of ordinary expenses. x x x.

GR NO. 167848

2007-04-27

BANK OF COMMERCE v. SPS. PRUDENCIO SAN PABLO

CHICO-NAZARIO, J.

Having laid that the bank of Commerce is not in good faith necessitates us to award moral damages, exemplary damages, attorney's fees and costs of litigation in favor of the spouses San Pablo. Moral damages are not awarded to penalize the defendant but to compensate the plaintiff for the injuries he may have suffered.[33] Willful injury to property may be a legal ground for awarding moral damages if the court should find that, under the circumstances, such damages are justly due.[34] In the instant case, we find that the award of moral damages is proper. The Bank of Commerce, in allowing Santos to secure a loan out of the property belonging to the spouses San Pablo, without taking the necessary precaution demanded by the circumstances owing to the public policy imbued in the banking business, caused injury to the latter which calls for the imposition of moral damages. As for the award of exemplary damages, we deem that the same is proper for the Bank of Commerce was remiss in its obligation to inquire into the veracity of Santos' authority to mortgage the subject property, causing damage to the spouses San Pablo.[35] Finally, we rule that the award of attorney's fees and litigation expenses is valid since the spouses San Pablo were compelled to litigate and thus incur expenses in order to protect its rights over the subject property.[36]

GR NO. 167346

2007-04-02

SOLIDBANK CORPORATION v. SPS. PETER AND SUSAN TAN

CORONA, J.

We find no compelling reason to disallow the application of the provisions on common carriers to this case if only to emphasize the fact that banking institutions (like petitioner) have the duty to exercise the highest degree of diligence when transacting with the public. By the nature of their business, they are required to observe the highest standards of integrity and performance, and utmost assiduousness as well.[17]

GR NO. 154469

2006-12-06

METROPOLITAN BANK v. RENATO D. CABILZO

CHICO-NAZARIO, J.

We never fail to stress the remarkable significance of a banking institution to commercial transactions, in particular, and to the country's economy in general. The banking system is an indispensable institution in the modern world and plays a vital role in the economic life of every civilized nation. Whether as mere passive entities for the safekeeping and saving of money or as active instruments of business and commerce, banks have become an ubiquitous presence among the people, who have come to regard them with respect and even gratitude and, most of all, confidence.[24]

GR NO. 146848

2006-10-17

GMA NETWORK v. JESUS G. BUSTOS

GARCIA, J.

Given the foregoing considerations, the propriety of the award by the CA of moral and exemplary damages need not detain us long. Suffice it to state that moral damages may be recovered only if the existence of the factual and legal bases for the claim and their causal connection to the acts complained of are satisfactorily proven.[24] Sadly, the required quantum of proof is miserably wanting in this case. This is as it should be. For, moral damages, albeit incapable of pecuniary estimation, are designed not to impose a penalty but to compensate one for injury sustained and actual damages suffered.[25] Exemplary damages, on the other hand, may only be awarded if the claimants, respondents in this case, were able to establish their right to moral, temperate, liquidated or compensatory damages.[26] Not being entitled to moral damages, neither may the respondents lay claim for exemplary damages.

GR No. 156132

2006-10-16

CITIBANK v. MODESTA R. SABENIANO

CHICO-NAZARIO, J.

Although this Court appreciates the right of petitioner Citibank to effect legal compensation of respondent's local deposits, as well as its right to the proceeds of PNs No. 20138 and 20139 by virtue of the notarized Deeds of Assignment, to partly extinguish respondent's outstanding loans, it finds that petitioner Citibank did commit wrong when it failed to pay and properly account for the proceeds of respondent's money market placements, evidenced by PNs No. 23356 and 23357, and when it sought the remittance of respondent's dollar accounts from Citibank-Geneva by virtue of a highly-suspect Declaration of Pledge to be applied to the remaining balance of respondent's outstanding loans. It bears to emphasize that banking is impressed with public interest and its fiduciary character requires high standards of integrity and performance.[141] A bank is under the obligation to treat the accounts of its depositors with meticulous care whether such accounts consist only of a few hundred pesos or of millions of pesos.[142] The bank must record every single transaction accurately, down to the last centavo, and as promptly as possible.[143] Petitioner Citibank evidently failed to exercise the required degree of care and transparency in its transactions with respondent, thus, resulting in the wrongful deprivation of her property.

GR No. 136371

2005-11-11

PRUDENTIAL BANK v. CHONNEY LIM

TINGA, J.

With the attending factual milieu, the imposition of damages on the errant bank is in order. Presaging this course of action is the ruling in Simex International v. Court of Appeals,[19] where this Court rendered a telling discourse on the fiduciary responsibility of depository banks, thus:The banking system is an indispensable institution in the modern world and plays a vital role in the economic life of every civilized nation. Whether as mere passive entities for the safekeeping and saving of money or as active instruments of business and commerce, banks have become an ubiquitous presence among the people, who have come to regard them with respect and even gratitude and, most of all, confidence. Thus, even the humble wage-earner has not hesitated to entrust his life's savings to the bank of his choice, knowing that they will be safe in its custody and will even earn some interest for him. The ordinary person, with equal faith, usually maintains a modest checking account for security and convenience in the settling of his monthly bills and the payment of ordinary expenses. As for business entities like the petitioner, the bank is a trusted and active associate that can help in the running of their affairs, not only in the form of loans when needed but more often in the conduct of their day-to-day transactions like the issuance or encashment of checks.

GR No. 157845

2005-09-20

PHILIPPINE NATIONAL BANK v. NORMAN Y. PIKE

CHICO-NAZARIO, J.

Though passed long after the unauthorized withdrawals in this case, the aforequoted provision is a statutory affirmation of Supreme Court decisions already in esse at the time of such withdrawals. We elucidated in the 1990 case of Simex International, Inc. v. Court of Appeals,[27] that "the bank is under obligation to treat the accounts of its depositors with meticulous care, always having in mind the fiduciary nature of their relationship."[28]

GR No. 151866

2004-09-09

SOLEDAD CARPIO v. LEONORA A. VALMONTE

TINGA, J.

Respondent, however, is clearly entitled to an award of moral damages. Moral damages may be awarded whenever the defendant's wrongful act or omission is the proximate cause of the plaintiff's physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury[20] in the cases specified or analogous to those provided in Article 2219 of the Civil Code.[21] Though no proof of pecuniary loss is necessary in order that moral damages may be adjudicated, courts are mandated to take into account all the circumstances obtaining in the case and assess damages according to their discretion.[22] Worthy of note is that moral damages are not awarded to penalize the defendant,[23] or to enrich a complainant, but to enable the latter to obtain means, diversions or amusements that will serve to alleviate the moral suffering he has undergone, by reason of defendant's culpable action. In any case, award of moral damages must be proportionate to the sufferings inflicted.[24]

GR No. 127469

2004-01-15

PHILIPPINE BANKING CORPORATION v. CA

CARPIO, J.

Section 2 of Republic Act No. 8791 (General Banking Law of 2000) expressly imposes this fiduciary duty on banks when it declares that the State recognizes the "fiduciary nature of banking that requires high standards of integrity and performance." This statutory declaration merely echoes the earlier pronouncement of the Supreme Court in Simex International (Manila) Inc. v. Court of Appeals[31] requiring banks to "treat the accounts of its depositors with meticulous care, always having in mind the fiduciary nature of their relationship."[32] The Court reiterated this fiduciary duty of banks in subsequent cases.[33]

GR No. 138569

2003-09-11

CONSOLIDATED BANK v. CA

CARPIO, J.

The law imposes on banks high standards in view of the fiduciary nature of banking. Section 2 of Republic Act No. 8791 ("RA 8791"),[18] which took effect on 13 June 2000, declares that the State recognizes the "fiduciary nature of banking that requires high standards of integrity and performance."[19] This new provision in the general banking law, introduced in 2000, is a statutory affirmation of Supreme Court decisions, starting with the 1990 case of Simex International v. Court of Appeals,[20] holding that "the bank is under obligation to treat the accounts of its depositors with meticulous care, always having in mind the fiduciary nature of their relationship."[21]

GR No. 135306

2003-01-28

MVRS PUBLICATIONS v. ISLAMIC DA'WAH COUNCIL OF PHILIPPINES

BELLOSILLO, J.

Likewise on the matter of damages, we agree that "moral damages may be recovered only if the plaintiff is able to satisfactorily prove the existence of the factual basis for the damages and its causal connection with the acts complained of,[49] and so it must be, as moral damages although incapable of pecuniary estimation are designed not to impose a penalty but to compensate for injury sustained and actual damages suffered.[50] Exemplary damages, on the other hand, may only be awarded if claimant is able to establish his right to moral, temperate, liquidated or compensatory damages.[51] Unfortunately, neither of the requirements to sustain an award for either of these damages would appear to have been adequately established by respondents."

	GR No. 208293 2014-12-10	PHILIPPINE NATIONAL BANK v. CARMELITA S. SANTOS LEONEN, J.
Similar to common carriers, banking is a business that is impressed with public interest. It affects economies and plays a significant role in businesses and commerce.[86] The public reposes its faith and confidence upon banks, such that "even the humble wage-earner has not hesitated to entrust his life's savings to the bank of his choice, knowing that they will be safe in its custody and will even earn some interest for him."[87] This is why we have recognized the fiduciary nature of the banks' functions, and attached a special standard of diligence for the exercise of their functions.
	GR No. 166096 2008-09-11	PHILIPPINE NATIONAL BANK v. RAMON BRIGIDO L. VELASCO REYES, R.T., J.
As an audit officer, Velasco should be the first to ensure that banking laws, policies, rules and regulations, are strictly observed and applied by its officers in the day-to-day transactions. The banking system is an indispensable institution in the modern world. It plays a vital role in the economic life of every civilized nation. Whether banks act as mere passive entities for the safekeeping and saving of money, or as active instruments of business and commerce, they have become an ubiquitous presence among the citizenry, who have come to regard them with respect and even gratitude and, most of all, confidence.[53]
	GR No. 177526 2008-07-04	PHILIPPINE SAVINGS BANK v. CHOWKING FOOD CORPORATION REYES, R.T., J.
In its declaration of policy, the General Banking Law of 2000[35] requires of banks the highest standards of integrity and performance. Needless to say, a bank is "under obligation to treat the accounts of its depositors with meticulous care.[36] The fiduciary nature of the relationship between the bank and the depositors must always be of paramount concern.[37]
	GR No. 123498 2007-11-23	BPI FAMILY BANK v. AMADO FRANCO NACHURA, J.
Our pronouncement in Simex International (Manila), Inc. v. Court of Appeals[38] continues to resonate, thus:The banking system is an indispensable institution in the modern world and plays a vital role in the economic life of every civilized nation. Whether as mere passive entities for the safekeeping and saving of money or as active instruments of business and commerce, banks have become an ubiquitous presence among the people, who have come to regard them with respect and even gratitude and, most of all, confidence. Thus, even the humble wage-earner has not hesitated to entrust his life's savings to the bank of his choice, knowing that they will be safe in its custody and will even earn some interest for him. The ordinary person, with equal faith, usually maintains a modest checking account for security and convenience in the settling of his monthly bills and the payment of ordinary expenses. x x x.
	GR NO. 167848 2007-04-27	BANK OF COMMERCE v. SPS. PRUDENCIO SAN PABLO CHICO-NAZARIO, J.
Having laid that the bank of Commerce is not in good faith necessitates us to award moral damages, exemplary damages, attorney's fees and costs of litigation in favor of the spouses San Pablo. Moral damages are not awarded to penalize the defendant but to compensate the plaintiff for the injuries he may have suffered.[33] Willful injury to property may be a legal ground for awarding moral damages if the court should find that, under the circumstances, such damages are justly due.[34] In the instant case, we find that the award of moral damages is proper. The Bank of Commerce, in allowing Santos to secure a loan out of the property belonging to the spouses San Pablo, without taking the necessary precaution demanded by the circumstances owing to the public policy imbued in the banking business, caused injury to the latter which calls for the imposition of moral damages. As for the award of exemplary damages, we deem that the same is proper for the Bank of Commerce was remiss in its obligation to inquire into the veracity of Santos' authority to mortgage the subject property, causing damage to the spouses San Pablo.[35] Finally, we rule that the award of attorney's fees and litigation expenses is valid since the spouses San Pablo were compelled to litigate and thus incur expenses in order to protect its rights over the subject property.[36]
	GR NO. 167346 2007-04-02	SOLIDBANK CORPORATION v. SPS. PETER AND SUSAN TAN CORONA, J.
We find no compelling reason to disallow the application of the provisions on common carriers to this case if only to emphasize the fact that banking institutions (like petitioner) have the duty to exercise the highest degree of diligence when transacting with the public. By the nature of their business, they are required to observe the highest standards of integrity and performance, and utmost assiduousness as well.[17]
	GR NO. 154469 2006-12-06	METROPOLITAN BANK v. RENATO D. CABILZO CHICO-NAZARIO, J.
We never fail to stress the remarkable significance of a banking institution to commercial transactions, in particular, and to the country's economy in general. The banking system is an indispensable institution in the modern world and plays a vital role in the economic life of every civilized nation. Whether as mere passive entities for the safekeeping and saving of money or as active instruments of business and commerce, banks have become an ubiquitous presence among the people, who have come to regard them with respect and even gratitude and, most of all, confidence.[24]
	GR NO. 146848 2006-10-17	GMA NETWORK v. JESUS G. BUSTOS GARCIA, J.
Given the foregoing considerations, the propriety of the award by the CA of moral and exemplary damages need not detain us long. Suffice it to state that moral damages may be recovered only if the existence of the factual and legal bases for the claim and their causal connection to the acts complained of are satisfactorily proven.[24] Sadly, the required quantum of proof is miserably wanting in this case. This is as it should be. For, moral damages, albeit incapable of pecuniary estimation, are designed not to impose a penalty but to compensate one for injury sustained and actual damages suffered.[25] Exemplary damages, on the other hand, may only be awarded if the claimants, respondents in this case, were able to establish their right to moral, temperate, liquidated or compensatory damages.[26] Not being entitled to moral damages, neither may the respondents lay claim for exemplary damages.
	GR No. 156132 2006-10-16	CITIBANK v. MODESTA R. SABENIANO CHICO-NAZARIO, J.
Although this Court appreciates the right of petitioner Citibank to effect legal compensation of respondent's local deposits, as well as its right to the proceeds of PNs No. 20138 and 20139 by virtue of the notarized Deeds of Assignment, to partly extinguish respondent's outstanding loans, it finds that petitioner Citibank did commit wrong when it failed to pay and properly account for the proceeds of respondent's money market placements, evidenced by PNs No. 23356 and 23357, and when it sought the remittance of respondent's dollar accounts from Citibank-Geneva by virtue of a highly-suspect Declaration of Pledge to be applied to the remaining balance of respondent's outstanding loans. It bears to emphasize that banking is impressed with public interest and its fiduciary character requires high standards of integrity and performance.[141] A bank is under the obligation to treat the accounts of its depositors with meticulous care whether such accounts consist only of a few hundred pesos or of millions of pesos.[142] The bank must record every single transaction accurately, down to the last centavo, and as promptly as possible.[143] Petitioner Citibank evidently failed to exercise the required degree of care and transparency in its transactions with respondent, thus, resulting in the wrongful deprivation of her property.
	GR No. 136371 2005-11-11	PRUDENTIAL BANK v. CHONNEY LIM TINGA, J.
With the attending factual milieu, the imposition of damages on the errant bank is in order. Presaging this course of action is the ruling in Simex International v. Court of Appeals,[19] where this Court rendered a telling discourse on the fiduciary responsibility of depository banks, thus:The banking system is an indispensable institution in the modern world and plays a vital role in the economic life of every civilized nation. Whether as mere passive entities for the safekeeping and saving of money or as active instruments of business and commerce, banks have become an ubiquitous presence among the people, who have come to regard them with respect and even gratitude and, most of all, confidence. Thus, even the humble wage-earner has not hesitated to entrust his life's savings to the bank of his choice, knowing that they will be safe in its custody and will even earn some interest for him. The ordinary person, with equal faith, usually maintains a modest checking account for security and convenience in the settling of his monthly bills and the payment of ordinary expenses. As for business entities like the petitioner, the bank is a trusted and active associate that can help in the running of their affairs, not only in the form of loans when needed but more often in the conduct of their day-to-day transactions like the issuance or encashment of checks.
	GR No. 157845 2005-09-20	PHILIPPINE NATIONAL BANK v. NORMAN Y. PIKE CHICO-NAZARIO, J.
Though passed long after the unauthorized withdrawals in this case, the aforequoted provision is a statutory affirmation of Supreme Court decisions already in esse at the time of such withdrawals. We elucidated in the 1990 case of Simex International, Inc. v. Court of Appeals,[27] that "the bank is under obligation to treat the accounts of its depositors with meticulous care, always having in mind the fiduciary nature of their relationship."[28]
	GR No. 151866 2004-09-09	SOLEDAD CARPIO v. LEONORA A. VALMONTE TINGA, J.
Respondent, however, is clearly entitled to an award of moral damages. Moral damages may be awarded whenever the defendant's wrongful act or omission is the proximate cause of the plaintiff's physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury[20] in the cases specified or analogous to those provided in Article 2219 of the Civil Code.[21] Though no proof of pecuniary loss is necessary in order that moral damages may be adjudicated, courts are mandated to take into account all the circumstances obtaining in the case and assess damages according to their discretion.[22] Worthy of note is that moral damages are not awarded to penalize the defendant,[23] or to enrich a complainant, but to enable the latter to obtain means, diversions or amusements that will serve to alleviate the moral suffering he has undergone, by reason of defendant's culpable action. In any case, award of moral damages must be proportionate to the sufferings inflicted.[24]
	GR No. 127469 2004-01-15	PHILIPPINE BANKING CORPORATION v. CA CARPIO, J.
Section 2 of Republic Act No. 8791 (General Banking Law of 2000) expressly imposes this fiduciary duty on banks when it declares that the State recognizes the "fiduciary nature of banking that requires high standards of integrity and performance." This statutory declaration merely echoes the earlier pronouncement of the Supreme Court in Simex International (Manila) Inc. v. Court of Appeals[31] requiring banks to "treat the accounts of its depositors with meticulous care, always having in mind the fiduciary nature of their relationship."[32] The Court reiterated this fiduciary duty of banks in subsequent cases.[33]
	GR No. 138569 2003-09-11	CONSOLIDATED BANK v. CA CARPIO, J.
The law imposes on banks high standards in view of the fiduciary nature of banking. Section 2 of Republic Act No. 8791 ("RA 8791"),[18] which took effect on 13 June 2000, declares that the State recognizes the "fiduciary nature of banking that requires high standards of integrity and performance."[19] This new provision in the general banking law, introduced in 2000, is a statutory affirmation of Supreme Court decisions, starting with the 1990 case of Simex International v. Court of Appeals,[20] holding that "the bank is under obligation to treat the accounts of its depositors with meticulous care, always having in mind the fiduciary nature of their relationship."[21]
	GR No. 135306 2003-01-28	MVRS PUBLICATIONS v. ISLAMIC DA'WAH COUNCIL OF PHILIPPINES BELLOSILLO, J.
Likewise on the matter of damages, we agree that "moral damages may be recovered only if the plaintiff is able to satisfactorily prove the existence of the factual basis for the damages and its causal connection with the acts complained of,[49] and so it must be, as moral damages although incapable of pecuniary estimation are designed not to impose a penalty but to compensate for injury sustained and actual damages suffered.[50] Exemplary damages, on the other hand, may only be awarded if claimant is able to establish his right to moral, temperate, liquidated or compensatory damages.[51] Unfortunately, neither of the requirements to sustain an award for either of these damages would appear to have been adequately established by respondents."

SIMEX INTERNATIONAL v. CA