Bank of the Philippine Islands, Inc. vs.

Roxas

Facts, transactions, and highlights

Gregorio C. Roxas delivered vegetable oil to Rodrigo and Marissa Cawili, which then issues a personal
check of 348,805.5 as their payment with the aforementioned. Upon encashment in the bank by Roxas,
the personal check is dishonored by bank. The spouses guaranteed Roxas that they would exchange it
with a cashier’s check from BPI. Nr. Cawili went to BPI’s Shaw Boulevard branch and prepared the
cashier’s check in the same amount, drawn from Mrs. Cawili’s account. Gregorio Roxas returned the
next day to encash the payment but was dishonored by the petitioner because the account where the
payment will be drawn was closed. Roxas made a RTC complaint stated therein the valuable collection
of the amount to be paid with indemnity for redress and cost of the suit. RTC later favored Roxas and
made Bank of the Philippines pay the corresponding amount with the additional cost specified. BPI being
the one who had been rendered the judgement made a petition on the Court of Appeals, yet the latter
still favored the decision of the Regional Trial Court. BPI said that Roxas, the respondent, is not a holder
in due course and that they are not accountable for the amount that is issued with the cashier’s check.

Legal issue:

Can a cashier’s check be deemed automatically accepted upon its issuance? Yes, an issued cashier’s
check should not bounce as the fund to be released is from the bank and would show as a form of a
reimbursement because the amount is temporarily withdrawn on the bank’s money with the cashier’s
sign and would later be paid. Because the cashier’s check is issued, it only means that the bank accepted
its obligation to pay for the time being as the maker.

According to Section 185 of the Negotiable Instruments Law,

Certification of check, effect of. – Where the check is certified by the bank on which it is drawn, the
certification is equivalent to an acceptance.

Final ruling:

The decision is against the petitioner, Bank of the Philippine Islands because it had issued the cashier’s
check which constitutes the acceptance of the performance of the obligation and therefore, became
responsible for the amount.