PDIC cases.docx

PHILIPPINE DEPOSIT INSURAN RANCE CORPORAT RATION, petitioner, vs.  THE HONORABLE COURT OF APPEALS and JOSE ABAD, LEONOR ABAD, SABINA ABAD, JOSEPHINE JOSEPHINE JOSIE BEATA BEATA ABAD-ORLI ABAD-ORLINA, NA, CECILIA CECILIA ABAD, PIO ABAD, ABAD, DOMINIC ABAD, TEODORA ABAD, respondents. G.R. No. 126911. A!"# $%, 2%%$ FACTS&

On May 22, 1987, a Friday, the Monetary Board (MB) of the Central Bank of the hilippines, no! Ban"ko #entral n" ilipinas, iss$ed %esol$tion &'& prohiitin" Manila Bankin" Corporation to do $siness in the hilippines, and plain" its assets and affairs $nder reeivership. *he %esol$tion, ho!ever, !as not served on MBC $ntil *$esday the follo!in" !eek, or on May 2+, 1987, !hen the desi"nated %eeiver took over. On May May 2&, 2&, 1987 1987,, the the net net ank ankin in" " day day foll follo! o!in in" " the the iss$ iss$an ane e of the the MB %esol$tion, %esol$tion, respondent -ose ad ad !as at the MBC at 9/'' a.0. for the p$rpose of pre ter0inat ter0inatin" in" the 71 olden olden *i0e *i0e 3eposit 3eposits s and redepos redepositin itin" " the f$nd represe represented nted therey into 28 ne! *3s in deno0inations of  4','''.'' or less $nder the na0es of  herein respondents individ$ally or 5ointly !ith eah other. Of the 28 ne! *3s, -ose  ad preter0inated preter0inated 8 and !ithdre! !ithdre! the val$e thereof in the total a0o$nt of 62','''.''. %espondents thereafter filed their lai0s !ith the 3C for the pay0ent of the re0ainin" 2' ins$red *3s. On Fer$ary 11, 1988, 3C paid respondents the val$e of 6 lai0s in the total a0o$nt of 12','''.''. 3C, ho!ever, !ithheld pay0ent of the 17 re0ainin" lai0s after ashin"ton #olid$0, 3ep$ty %eeiver of MBCloilo, s$0itted a report to the 3C that that there !as 0assive onversion and s$stit$tion s$stit$tion of tr$st and deposit ao$nts ao$nts on May 2&, 1987 at MBCloilo. Bea$ Bea$se se of the the repo report, rt, 3C 3C enter entertai tained ned serio serio$s $s reser reserva vatio tion n in reo reo"ni "nii in" n" respondents *3s as deposit liailities of MBCloilo. *h$s, on $"$st 6', 1991, it filed a petition for delaratory delaratory relief a"ainst respondents !ith the %e"ional %e"ional *rial Co$rt (%*C) of loilo City, for a 5$diial delaration deter0ination of the ins$raility of respondents *3s at MBCloilo. n its 3eision of Fer$ary 22, 1994, Branh 6' of the loilo %*C delared the 2' *3s of respondents to e deposit liailities of MBC, hene, are liailities of 3C as stat$tory ins$rer.

On appeal, the Co$rt of ppeals, y the assailed 3eision of Otoer 21, 199+, affir0ed the trial o$rts: deision eept as to the a!ard of le"al interest !hih it deleted. ;ene, this petition. CONTENTIONS OF THE PETITIONER&

3C is liale only for deposits reeived y a ank in the $s$al o$rse of $siness. MBC !as prohiited fro0 doin" f$rther $siness y MB %esol$tion &'& as of May 22, 1987, all transations s$se