G.R. No.

154469 December 6, 2006

METROPOLITAN BANK AND TRUT !OMPAN", petitioners,
vs.
RENATO D. !ABIL#O, respondent.
Facts: Respondent Renato D. Cabilzo issued a Metropolitan Bank and Trust Company
(Metrobank c!eck to be paid to a certain Mr. Mar"uez. #ventually t!e c!eck $as
cleared. %ubse"uently, respondent Cabilzo discovered t!at t!e Metrobank c!eck
$!ic! !e issued $as altered. Because o& t!is, respondent Cabilzo demanded petitioner
Metrobank &or t!e payment o& t!e value o& t!e c!eck, a&ter deductin' its ori'inal
value. (etitioner Metrobank &ailed or re&used to comply $it! t!e demand, t!us
respondent Cabilzo instituted an action a'ainst petitioner Metrobank. (etitioner
Metrobank claimed t!at respondent Cabilzo $as ne'li'ent $!ic! resulted in t!e c!eck
bein' altered. Because o& suc!, petitioner Metrobank demanded &rom respondent
Cabilzo &or payment in t!e amount o& ()**,***.** $!ic! represents t!e cost o&
liti'ation and attorney+s &ees, &or alle'edly brin'in' a &rivolous and baseless suit.
,ssue: -!et!er or not petitioner Metrobank could claim reimbursement &rom
respondent Cabilzo.
.eld: /o. T!e bank on $!ic! t!e c!eck is dra$n, kno$n as t!e dra$ee bank, is under
strict liability to pay to t!e order o& t!e payee in accordance $it! t!e dra$er+s
instructions as re&lected on t!e &ace and by t!e terms o& t!e c!eck. (ayment made
under materially altered instrument is not payment done in accordance $it! t!e
instruction o& t!e dra$er. -!en t!e dra$ee bank pays a materially altered c!eck, it
violates t!e terms o& t!e c!eck, as $ell as its duty to c!ar'e its client+s account only
&or bona &ide disbursements !e !ad made.
,n t!e case at bar, since petitioner Metrobank did not pay accordin' to t!e
ori'inal tenor o& t!e instrument, as directed by respondent Cabilzo, t!en it !as no ri'!t
to claim reimbursement &rom respondent Cabilzo, muc! less, t!e ri'!t to deduct t!e
erroneous payment it made &rom respondent Cabilzo+s account $!ic! it $as e0pected
to treat $it! utmost &idelity.