BPI Vs Roxas Digest

 

PRINCE; NIL; RIGHTS OF THE HOLDER IN DUE COURSE Bank of the Philippine Islands s! Ro"as# G!R! No! $%&'((# O)to*e+ $%# ,--& Petitione+ s! Respondents Roxas Ro xas sold vegetable oil oil to the Cawili spouses. spouses. As payment, the Cawili Cawili spouses issued issued a personal check. But the personal check was was dishonour dishonoured. ed. The Cawili Cawili spouses spouses replaced the dishonoured check with a cashier’s check rom the B!" to be drawned against the account acco unt o #rs. Cawili. Cawili. Again, Again, the cashier’s cashier’s check was also dishonoure dishonoured d because #rs. Cawili’s account account closed. Thus, Roxas Roxas $led a complaint to the RT RTC or the collection o the sum o money covering the value o the dishonoured, including prayer or damages and costt o suit. B!" argued cos argued that the cashier’s cashier’s check check was dishonour dishonoured ed because because o lack o  cons consider enough, enoug h, the RTC render ren ed &udgment &udg ment against agains t damages B!" and ordere ord ered d the latterideratio to ation. payn.the%oon sum o money covering thedered value o the check plus and cost o  suit.. 'ot satis$ed suit satis$ed,, B!" appealed appealed to the CA but but the latter latter a(rmed a(rmed the RT RTC. )ence, )ence, B!" petitione petit ioned d to the %C or Review on Certiorari.   B!" reasoned reasoned that Roxas Roxas is not a holder holder in due course since Roxas did not *...took it in good aith and or value+ -%ection / o the 'egotiable "nstruments 0aw1. %ince the element o 2value2 is not present, thereore, Roxas Roxas could not be a holder in due course. ISSUE. Is Ro"as a holde+ in d/e )o/+se 0hen he held a )ashie+1s )he)k that 0as dishono/+ed fo+ la)k of )onside+ation o+ al/e# i!e!# the a))o/nt f+o2 0hi)h the )he)k sho/ld *e d+a0n )losed3 4ES! PETITION DENIED! C5 5FFIR6ED! RULES7RE5SONS.  %ection / o the '"0 states3 %4C. /. Value, what constitutes. 5 6alue is any consideration su(cient to support a simple contract. An antecedent or pre7existing debt constitutes value+ and is deemed as such whether the instrument is payable on demand or at a uture time. A value 2in general terms may be some right, interest, pro$t or bene$t to the party who makes the contract or some orbearance, detriment, loan, responsibility, etc. on the other side.2 A cashier’s check is really the bank’s own check and may be treated as a promissory note with the bank as the maker. The check becomes the p+i2a+8 o*li9ation of the *ank  0hi)h iss/es it and )onstit/tes a 0+itten p+o2ise to pa8 /pon de2and . This Court took &udicial notice o the 2well7known and accepted practice in the business sector that a cashier’s check is deemed as cash.2 This is because the 2e+e iss/an)e of a )ashie+1s )he)k is )onside+ed a))eptan)e the+eof .