Nov 16 Digest

FAR EAST BANK v. CA FACTS: Luna applied for, and was accorded, a FAREASTCARD issued b pe!!oner Far Eas" Ban# and Trus" Co$pan %&FEBTC&' a" i"s (asi) Branc*. +pon *is reues", "*e ban# also issued a supple$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".

HILII!E !ATI"!AL #A!$% pe&&oner% 's( C"URT "F AEALS )n* LIL+ S( U,"L% respon*ents(

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 len 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$a)es a)ains" a)ains" pe!!oner for dis*onorin) *er c*ec#s despi"e sucienc of *er funds in "*e ban#. (e!!oner ban# ad$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 aRE, "*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" %CA' erred in *oldin) "*a" pe!!oner was es"opped fro$ denin) "*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 aca$po, respec!vel.  =*en issued and presen"ed for pa$en", priva"e responden" *ad sucien" funds in *er Savin)s Accoun". owever, pe!!oner dis*onored *er c*ec# alle)edl for insucienc 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$a)es a)ains" pe!!oner for dis*onorin) *er c*ec#s despi"e sucienc of *er funds in "*e ban#. (e!!oner ban# ad$i+ (%'+(&'. !& a(%#( a%' #& '&&%'a %# F&'&$(/o La*$&a%o (# #& oy $&#*$%&' #o #& P.. a$$a/+ a%' #& a#&$ o #& oy a+ /a&', *# %o +a#(+a/#o$y a$$a%3&4&%#+ ne 3illi on (esos plus a "o"al (6?,???.?? represen!n) in"eres"s of 6?X and 5X per $on"* for "*e period Februar 6HH "o Au)us" 6HH and >rderin) defendan", 3ansue"o Cua"on, "o pa Ac"ober 76, 6HH6 un!l /nali" of "*is decision. A1er "*e 9ud)$en" beco$es /nal and e:ecu"or un!l "*e obli)a!on is sa!s/ed, "*e a$oun" due s*all fur"*er earn in"eres" a" 6X per ear. =EREF>RE, in view of all "*e fore)oin), "*e ins"an" pe!!on is MRANTED. T*e Au)us" 76, ??6 Decision of "*e Cour" of Appeals in CA0M.R. C8 No. 4I64, w*ic* ar$ed "*e Deci sion of "*e Re)ional Trial Cour" of Meneral San"os Ci", Branc* 74, in S(L. Civil Case No. 74H, is 3>D2F2ED. T*e in"eres" ra"es of 6?X and 5X per $on"* i$posed b "*e "rial cour" is reduced "o 6X per annu$, co$pu"ed fro$ "*e da"e of "*e e:ecu!on of "*e loan on >c"ober 76, 6HH6 un!l /nali" of "*is decision. A1er "*e 9ud)$en" beco$es /nal and e:ecu"or un!l "*e obli)a!on is sa!s/ed, "*e a$oun" due s*all fur"*er earn in"eres" a" 6X per ear.

LIA LA VS OLB*I. SAILL .O (GR L-0771, 2? a 1%?4) Facts: On 7 S!&t!"#!$ 1%57, L'a" La9 (&a'nt') an! *10,000+00, 9't/ut 'nt!$!st, t O"&'c Sa9"' .+ an E'n L!! ./', as t/! att!$s "anag'ng &a$tn!$ (!!nants)+ T/! an #!ca"! ut'"at! u! n 1 @anua$ 1%60, #ut 9as nt &a' n t/at at!, 9't/ t/! !#t$s as='ng $ an !8t!ns'n   "nt/s, $ u& t 0 A&$' 1%60+ On 17 a$c/ 1%60, t/! &a$t'!s !8!cut! ant/!$ an cu"!nt+ *a"!nt  t/! *10,000+00 9as !8t!n! t 0 A&$' 1%60,#ut t/! #'gat'n 9as 'nc$!as! # *6,000 9/'c/ $"! &a$t  t/! &$'nc'&a #'gat'n t ans9!$ $ att$n!s !!s, !ga 'nt!$!st, an t/!$ cst 'nc'!nt t/!$!t t

9as n!  a9+ Issu! D1: /!t/!$ t/! a!gat'n  usu$ s/u #! "a! 'n 9$'t'ng an un!$ at/, &u$suant t S!ct'n %  t/! >su$ La9+ **LB .O+ VS+ EIA (2 S.RA 54%, 1%61) FA.TS: a$'an !'na /a an accunt &$'$ t a 7, 1%56 9't/ an'a T$a'ng an Su&& .+ 9't/ an a"unt  *60,000 $ 9/'c/ !'na !8!cut! a &$"'ss$ nt!+ T/! nt!

8acts9 

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&$3'! t/at u&n a'u$! t &a t/! 'nsta"!nts, t/! $!"a'n'ng a"unt 9' '""!'at! #!c"! u! an &aa#! at t/! &t'n  t/! /!$  t/! nt! 9't/ + a"unt u! $ att$n!s !!s an !8&!ns!s  c!ct'n+

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On @anua$ ?, 1%57, an'a T$a'ng J .+ '! a c"&a'nt aga'nst !'na $ a'u$! t &a 'nsta"!nts $" S!&t!"#!$ 1%56 t @anua$ 7, 1%57+ !'na '! an ans9!$ a"'tt'ng a!gat'ns #ut sa' t/! + $ att$n!s !!s 9!$! !8$#'tant an

P$(:a#& $&+o%'&%# Sa#*$%(%o ;a$&%3 a+ #& $&3(+#&$&' o%&$ o 2 a$/&+ o a%'. P&#(#(o%&$+ &$& &++&&+ o a 200 +).4. o$#(o% o o%& o #& +a(' 2 a%'+. O% A$( 29, 1985, Sa#*$%(%o ;a$&%3 a%' (+ +o%, F$a%/(+/o ;a$&%3, o#a(%&' a oa% $o4 &#(#(o%&$ a4o*%#(%3 #o P26,000 (% /o%+('&$a#(o% o (/ #&y $o4(+&' #o #$a%+&$  #& o++&++(o% a%' &%oy4&%# o #& $*(#+ o Lo# No. 661-E. O% A*3 , 1986, Sa#*$%(%o +o' #o (+ +o% F$a%/(+/o 18,500 +).4. o o# No. 661-D-5-A. I% #*$%, F$a%/(+/o +o' o% A*3. 27, 1986 #o $(:a#& $&+o%'&%# Bo+& Ra4o+ o ,000 +). 4. o #& o#. etitioner filed a complaint for the annulment of the sale on the ;round that the sale was fraudulently prepared.

uncnsc'na#!+ &n &!t't'n  

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Do&+ &#(#(o%&$ a:& a /a*+& o a/#(o%

&a'nt', a 9$'t  attac/"!nt 9as 'ssu! an !3'! u&n !!3!n  !!nantKs #us!s+