CALTEX V CA

CALTEX (PHILIPPINES), INC., petitioner, vs. COURT OF APPEALS and SECURITY BANK AND TRUST COMPANY, respondents. FACTS 1. Defendan Defendant, t, a commercia commerciall banking banking institution, institution, issued issued 28 certifica certificates tes of time deposit !CTDs" in favor of one Angel dela Cru# $%o deposited $it% %erein defendant t%e aggregate amount of &1,12, 2. Angel Angel dela Cru# delive delivered red t%e said certifi certificates cates of time time !CTDs" !CTDs" to Calte' in connection $it% %is purc%ased of fuel products from t%e latter. (. Sometime Sometime Angel Angel dela dela Cru# informed informed t%e t%e )ranc% )ranc% *anger, *anger, t%at %e lost lost all t%e certificates of time deposit in dispute. *anager advised said depositor to e'ecute and submit a notari#ed Affidavit of +oss, as reuired b- defendant banks procedure, if %e desired replacement of said lost CTDs /. Angel Angel dela Cru# e'ecut e'ecuted ed and delivere delivered d to defendan defendantt bank bank t%e reuire reuired d  Affidavit of +oss. 28 replacement CTDs $ere issued in favor of said depositor. 0. Angel Angel dela Cru# Cru# negotiated negotiated and obtain obtained ed a loan from defenda defendant nt bank in t%e amount of !&80,.". n t%e same date, said depositor e'ecuted a notari#ed Deed of Assignment of Time Deposit $%ic% stated, among ot%ers, t%at t%at %e !de la Cru#" Cru#" surren surrender ders s to defend defendant ant bank 3full 3full contro controll of t%e indicated time deposits from and after date3 of t%e assignment and furt%er  aut%ori#es aut%ori#es said bank to pre4termina pre4terminate, te, set4off and 3appl- t%e said time deposits to t%e pa-ment of $%atever amount or amounts ma- be due3 on t%e loan upon its maturit5. Someti Sometime, me, *r. Aranas Aranas,, Credit Credit *anager *anager of Calte Calte', ', $ent to t%e defenda defendant nt banks and presented for verification t%e CTDs declared lost b- Angel dela Cru# alleging t%at t%e same $ere delivered to %erein plaintiff 3as securit- for  purc%ases made $it% Calte'3 b- said depositor . Defendan Defendantt bank re6ected re6ected t%e plaint plaintiffs iffs demand demand and and claim for for pa-ment pa-ment of t%e value of t%e CTDs in a letter dated Februar- , 178(. 8. n April April 178(, 178(, t%e loan of Angel Angel dela Cru# Cru# $it% t%e defenda defendant nt bank matured matured and fell due, t%e latter set4off and applied t%e time deposits in uestion to t%e pa-ment of t%e matured loan. 7. n vie$ of t%e foregoi foregoing, ng, Calte' Calte' filed filed t%e instant instant compla complaint int,, pra-in pra-ing g t%at t%at defendant bank be ordered to pa- it t%e aggregate value of t%e certificates of  time deposit of &1,12, &1,12,. . plus accrued interest interest and compounded compounded interest t%erein at 159 per 159 per annum, annum, moral and e'emplar- damages as $ell as attorne-s fees. TC&CA RULING: :esponde :espondent nt court ruled ruled t%at t%e CTDs in uestion uestion are non4 negotiable instruments, nationali#ing as follo$s; . . . :TB )A?E A?D T:>ST C*&A?B58 A-ala Ave., *akati ?o. 711 *etro *anila, &%ilippine &%ilippines s S>CAT FFC=& /,. C=:TFCAT= F D=&ST :ate 159 Date of *aturit- F=). 2(, 178/ F=) 22, 1782, 17  T%is is to Certif- t%at ) = A : = : %as deposited in t%is )ank t%e sum of &=SS; F>: T>SA?D ?+B, S=C>:TB )A?E S>CAT FFC= &/, G  CTS &esos, &%ilippine Currenc-, Currenc-, repa-able to said depositor (1 da-s. after date, upon presentation and surrender of t%is certificate, $it% interest interest at t%e rate of 159 per cent per cent per annum. annum. !Sgd. llegible" !Sgd. llegible"  A>T:H=D SI?AT>:=  A>T:H=D SI?AT>:=S S SS>=S; 1.