1. Prudential Bank v. Court of Appeals, GR No. 108957, June 14, 1993.

CRUZ, J:

FACTS.

Aurora Cruz made a money placement transaction with Petitioner bank Prudential Life whereby she and her
sister deposited Php. 200, 000.00 with 13.75% annual rate and will mature after 63 days. At the maturity date, Cruz
went to the bank and renew her investment. Susan Quimbo, the bank’s employee, who also assisted Cruz during
her first investment, advised Cruz to sign a withdrawal slip as per the new requirement of the bank. Upon maturity
of the second investment, Cruz tried to withdraw her money but she was advised that such has already been
withdrawn by her. After several demands from the bank and getting no positive answer, Cruz instituted a case before
a RTC for breach of contract. The trial court found for Cruz and ordered payments. The decision was affirmed in toto
by the Court of Appeals upon appeal by the bank. Petitioner bank eventually elevated the case to the High Court
under Rule 45 Appeal by Petition for Review on Certiorari.

ISSUE.

Is Petitioner-bank liable to pay Cruz based on its employee’s acts of irregularity?

RULING.

Yes. A banking corporation is liable to innocent third persons where the representation is made in the
course of its business by an agent acting within the general scope of his authority even though the agent is
secretly abusing his authority and attempting to perpetrate a fraud upon his principal or some other person for his
own ultimate benefit.

Such liability dates back to the Roman Law maxim, Qui per alium facit per seipsum facere videtur.
“He who does a thing by an agent is considered as doing it himself.” This rule is affirmed by the the
provisions of the New Civil Code in Articles 1910 and 1911 thereof.

Here, the bank has not explained the remarkable coincidence that the amount indicated in the withdrawal
slip is exactly the same amount Cruz was re-investing after deducting therefrom the pre-paid interest. Also, the
bank has also not succeeded in impugning the authenticity of the Confirmation of Sale and the Debit Memo which
were made on its official forms. These are admittedly not available to the general public or even its depositors and
are handled only by its personnel.