BPI vs CA, et. al. G.R. No. 136202: January 25, 2007

FACTS:

Private respondent Salazar, filed an action against BPI for a sum of money amounting to P267,707,70. In its answer, Petitioner BPI alleged that Templonuevo, a third-party defendant, demanded from it the payment of P267,692.50, representing the aggregate value of 3 checks, which were allegedly payable to him, but which were deposited with the petitioner bank to Salazar’s account, without his knowledge and corresponding endorsement. BPI complied with Templonuevo’s demand by paying him the amount and freezing Salazar’s account. They debited the amount from Salazar’s account later on.

The checks Salazar had possession of, as found by the court, were payable to the order of JRT Construction and Trading, which was the name of Templonuevo’s business.

ISSUE/S:#1. Did BPI have the authority to unilaterally withdraw from Salazar’s account the amount it has previously paid upon certain endorsed order instrument?

#2. Did BPI act judiciously in debiting Salazar’s account?

HELD:#1. Yes. Records show that no prior arrangement existed between Salazar and Templonuevo regarding the transfer of ownership of the checks. This fact is crucial as Salazar’s entitlement to the value of the instruments is based on the assumption that she is a transferee within the contemplation of Section 49 of the NIL.

Section 49 of the NIL contemplates a situation where the payee or endorsee delivers a negotiable instrument for value without endorsing it. The underlying premise of this provision, however, is that a valid transfer of ownership of the negotiable instrument in question has taken place. Transferees in this situation do not enjoy the presumption of ownership in favor of holders since they are neither payees nor endorsees of such instruments. Mere possession of a negotiable instrument does not in itself conclusively establish either the right of the possessor to receive payment, or of the right of one who has made payment to be discharged from liability. Something more than mere possession is necessary to authorize payment to such possessor.

#2. No.Solely upon the prompting of Templonuevo, BPI debited the account of Salazar without even serving due notice upon her. Consequently, this caused damage to Salazar such as having checks she issued dishonored because she was not given prior notice of the deduction from her account. As such, the award of damages must be sustained.