NEGOTIABLE INSTRUMENTS LAW

Compilation of Digested Cases
TABLE OF CONTENTS
I. Introduction
Applicability of the Negotiable Instruments Law

Kauffman vs. PNB, 42 Phil 182, September 29, 1921

GSIS vs. CA, 170 SCRA 533, February 23, 1989

Concept of Negotiable Instruments
o Tibajia vs. CA, 223 SCRA 163
o PAL vs. CA, GR. 49188, Jan. 30, 1990
Negotiable Instruments Compared with other Papers
Read: Sesbreno vs. CA, GR 89252, May 24, 1993
Some Non-Negotiable Instruments

Philippine Education Co. vs. Soriano, GR L-22405, June 30, 1971

Metropolitan Bank vs. CA, 194 SCRA 169 (1991)

II. Form and Interpretation of Negotiable Instruments
1. How Negotiability is Determined

Caltex (Philippines) vs. CA, 212 SCRA 448, Aug. 10, 1992

2. Effect of Estoppel

Banco de Oro vs. Equitable Banking Corp.; 157 SCRA 188 (1988)

Phil. Bank of Commerce vs. Aruego, 102 SCRA 530, Jan. 31, 1981

3. Requisites of Negotiability (Sec. 1, NIL)

Read: Metropolitan Bank vs. CA, 194 SCRA 169, Feb. 18, 1991

Pay vs. Palanca, 57 SCRA 618

Read: Ang Tek Lian vs. CA, 87 Phil 383, Sept. 25, 1950

III. Transfer and Negotiation
1. Issuance/Delivery of Negotiable Instruments

68 Phil 178. 245 SCRA 374. 2001  Marcelo Mesina vs. 28. 1986 2. Sambok Motors. Holders 1. 19. PNB. Burgos. Feb. Holders in Due Course (Sec. 1997 5. What is a holder (Sec. 54. Dela Victoria vs. April 30. 217 SCRA 743. CA. 9. 109 Phil 706. 31. March 9. 325 SCRA 259. 1995  Dela Victoria vs. 30. 52. 28. June 27. CA. June 13. 10. 1993  Consolidated Plywood vs. Feb. 53. 1960  Atrium Management vs. How are Negotiable Instruments and Non-Negotiable Instruments Transferred  Sesbreno vs. CA. 40-48. 1983  Gempesaw vs. GR 175350. CA. 49. CA. 1993 9. 120 SCRA 864. 286 SCRA 594 4. NIL)  Enrique Montinola vs. 222 SCRA 466. 26. March 3. CA. Special Steel. How Negotiation Takes Place  Manuel Lim vs. 2012 . 1993 What Constitutes Value (Sec. Other Rules on Indorsement (Sec. Kinds of Indorsement  Metropol (Bacolod) Financing vs. CA. Nov. 191. 145 SCRA 497. 1995  Development Bank of Rizal vs. 144 SCAD 390. CA. Feb. 245 SCRA 374. GR L-2516. 1995 3. Sept. Assignment and Negotiation Distinguished. 218 SCRA 628. 25. Tan Kim. May 24. NIL)  Chan Wan vs. 149 SCRA 448. 1950 10. CA. Feb. 88. 13. 2000 IV. NIL)  Equitable Banking vs. 55. Sima Wei. 25. IFC Leasing. 1951  Ang Tek Lian vs. 1987  Traders Royal Bank vs. Liability of Assignor  Casabuena vs. June 27. 56. Feb. NIL)  Bibiano Banas vs. 32. 269 SCRA 16. Burgos. 251 SCRA 409. Sept. Dec.

1992  Go vs. Acceptor o PNB vs. 2010 4. 96160. Maniego. June 17. 16. Dec. CA. 181 SCRA 296  State Investment House vs. When Subject to Original Defenses (Sec. Parties who are Liable Liability and/or Warranties of Parties  Jai-Alai vs. 66. 22. CA. Liability of Accommodation Party (Sec. 15. July 13. 57. GR 16477. 22 SCRA 713. 28 Phil 640. Nov. NIL) i. 29. 1986  Stelco Marketing vs. Aug. 1989  PNB vs. Indorsers (Sec. 168842. Rights of Holders in Due Course (Sec. 177 SCRA 594. 63. 1968  People vs. 68. GR No. 27. De Ocampo vs. Gatchalian. July 14. 30. GR No. BPI. Feb. 1987 v. 1921  Crisologo vs. 230 SCRA 643 (1994)  Stelco Marketing vs. 14. 1968 d. Ting. 1925  Maulini vs. 66 SCRA 29. Nov. CA. 15. 1922 o PNB vs. CA. CA. 1992 V. Serrano. 3 SCRA 596. 210 SCRA 51. 1961  Yang vs. Nov. Sept. 2003  Bataan Cigar vs. 16. 25 SCRA 693. Maza. NIL)  People vs. Order of Liability (Sec. 29. 58. Feb. Metropolitan Bank. NIL)  Ang Tiong vs. 175 SCRA 311. 46 Phil 716. NIL)  Salas vs. Sellner. Sept. CA. NIL). 11. CA. NIL)  Clark vs. No. 68. 22. CA. 6. Maniego . 138074. 1989  Prudencio vs. GR 24224. Oct. 1975 c. 1914 vi. Picornell. Aug. General Indorser (Sec. 143 SCRA 7. 148 SCRA 30. June 17. CA. Aug. 26. 52. 3.

1993  Republic vs. CA. 125. Real and Personal Defenses Distinguished 2. GR 107382. GR L-40769. 1341. 194 SCRA 169 (1991)  Samsung Construction vs. March 14. GR. GR 139130. PNB. 1996  Montinola vs. Defenses 1. 2009 Material Alteration [partial defense] (Sec. 1988  Banco de Oro vs. Feb. 1951 . NIL)  PNB vs.o VI. GR L-62943. CA. CA Persons Precluded from Setting Up Forgery  MWSS vs. 1996 (doctrine of comparative negligence)  Gempesaw vs. 28. 15. 20. 256 SCRA 491. GR 132250. CA  Bank of America vs. Far East Bank. 1975  MWSS vs. Ebrada. Feb. 31. RPN. 2001  Crisologo-Jose vs. Jan. GR 109491. Jan. CA. 1988  Westmont Bank vs. 2002  BPI vs. 30. July 14. 218 SCRA 682. 124. GR 74917. 9. CA. April 25. Jan. Sept. 1986  Metropolitan Bank vs. CA. 27. GR 138510. 88 Phil 178. 2002  Traders Royal Bank vs. Real Defenses Defense of Minority not Total (See Art. New Civil Code)  Atrium Management Corp. Feb. 10. CA. 1989 Forgery of Bearer Instrument  Associated Bank vs. July 31. GR 129015. CA. 80599. May 21. 158 SCRA 582. Associated Citizens Bank. 2002  Ilusorio vs. Aug. 2003  PNB vs Quimpo. Oct. vs. Equitable Banking. CA. Eugene Ong. Nov. 26.

Extinctive Prescription  PCIB vs. 23. CA. CA Fraud in Inducement  Great Eastern Insurance vs. 1988 o Gempesaw vs. Personal Defenses Absence or Failure of Consideration (Sec. 23.. 1975 o PNB vs. 284 SCRA 643. 350 SCRA 446  Papa vs AU Valencia. Oct. GR 126568. GR L-8155. 22. 23. 350 SCRA 446 o Papa vs. March 14. 1922 o Republic vs. Quimpo. 1922  Quirino Gonzalez Logging vs. July 31. CA. Hong Kong Shanghai Bank. Jan. NIL)  Crisologo-Jose vs. NIL)  State Investment House vs. AU Valencia. 84. 22. Ebrada. CA. CA. Feb. 31. 1993 o PCI Bank vs. CA. 28. 1990 o Associated Bank vs. Illegality 3. 1998 g. Cam. 2003 VII. CA. Jan. Enforcement of Liability Liability of Person Secondarily Liable When Instrument Dishonored (Sec. 15. 284 SCRA 643 o Far East Realty vs. Aug. 1956 . CA. 1996 o Great Eastern vs. CA. 23. 166 SCRA 256 (1988) o McGuire vs Province of Samar. 9. Hongkong and Shanghai Banking Corp. Jan. GR 18657. April 20. 1990 o PNB vs. Jan. 1989 o Salas vs. Sept. Aug.

GR L-16106. Nov. 157 SCRA 188 (1988) b. 2001 VIII. 208 SCRA 468 (1992)  Bataan Cigar vs. Relationship between Drawer. April 1923 o Gullas vs. 187-189. 30. Discharge of Instruments Surrender of Instrument upon Discharge  State Investment House vs. 185. 1980  PNB vs. 19. Feb. 2. CA. GR 43191. 189. Drawee . Drawee. 200 SCRA 637. Seneris. PNB. NIL)  New Pacific Timber vs. GR 105774. 2002 o Luis Wong vs CA. Checks defined (Sec. GR 19051. National City Bank of New York. 63 Phil 711 effects of crossing a check  Associated Bank vs. NIL)  Banco de Oro Savings vs.. March 3. Payee. Kinds of Checks certified check (Sec. Dec. 3. GR 75954. 13. Hon. 1994  Gempesaw vs. 1993 IX. CA. Drawer. Distinguished from Drafts  RP vs. 1991 o Great Asian Sales vs. Dec. 1935 o Nyco Sales vs. Oct. 1992 Relationship between. 1994  State Investment House vs. Checks a. and Payee d. GR 101163. Feb. Equitable Banking Corp. 22. CA. Jan. 186. 218 SCRA 682. BA Finance. CA. GR 117857.o Asia Banking vs. 230 SCRA 648. 11. 1961 c. April 25. CA 1989 memorandum and traveller’s check  People vs Nitafan. Philippine National Bank. CA. Javier.

CA. Spouses Moran vs. 2004 iron clad rule for cashier’s checks  Mesina vs. IAC Crimes Involving Checks BP 22  Domangsang vs. 347 SCRA 75 (2000) Check Kiting [Art. March 7.315 (1b). 18. RPC)  Ramos vs. CA. GR 105836. Catalan. CA. 1994  Gempesaw vs. Oct. CA  Hongkong and Shanghai Bank vs. 203 SCRA 657 .