G.R. No.

176434 June 25, 2008

BANK OF THE PHILIPPINE ISLANDS, petitioner,

vs.
LIFETIME MARKETING CORPORATION, respondent.

FACTS:

A certain Alice Laurel (Laurel) deposited several checks in favor of respondent. The deposit of
these checks were later reversed upon request by Laurel. In turn, the amount that was supposed to be
credited to respondent was cancelled.

The above fraudulent transactions of Laurel were made possible through BPI tellers’ failure to
retrieve the duplicate original copies of the deposit slips from the former, every time they ask for
cancellation or reversal of the deposit or payment transaction. Respondent then filed a complaint for
damages against petitioner.

ISSUE:
WON BPI is liable for the negligence of the teller.

HELD:

Yes. The court has repeatedly emphasized that the banking industry is impressed with public
interest of paramount importance, thereto, is the trust and confidence of public in general. Accordingly,
the highest degree of diligence is expected, and high standards of integrity and performance are required
of it. By the nature of its functions, a bank is under obligation to treat the accounts of its depositors with
meticulous care, always having in mind the fiduciary nature of its relationship with them.