2/19/2020 Westmont Bank v Ong; G.R. No.

132560; 30 Jan 2002; 375 SCRA 212 – The Zamboangueña

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Westmont Bank v Ong; G.R. No.

132560; 30 Jan 2002; 375 SCRA
212
Published on 26 January 2018 — in Legal Chyme — by Claudine

FACTS:
Two manager’s
checks in
respondent’s
name were issued
as payment of the
shares of stocks he
sold. His friend got
hold of the checks,
forged
respondent’s
signature and
deposited them
with petitioner bank, where both are depositors. Petitioner
accepted and credited both checks to the forger’s account
without verifying the signature indorsements against
respondent’s specimen signature. His friend immediately
withdrew the money and absconded.

ISSUE(S):
Whether or not petitioner is liable for the payment of the forged
check.

HELD:
YES. The collecting bank is liable to the payee and must bear the
loss because it is its legal duty to ascertain that the payee’s
endorsement was genuine before cashing the check. As a
general rule, a bank or corporation who has obtained
possession of a check upon an unauthorized or forged
indorsement of the payee’s signature and who collects the
amount of the check from the drawee, is liable for the proceeds
thereof to the payee or other owner, notwithstanding that the
amount has been paid to the person from whom the check was
obtained.

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BPI Family Alvarez v PCI Bank v Phil. Bank of

Bank v Court of First CA; G.R. No. Commerce v
Buenaventura Instance; 121413; 29 Aruego; G.R.
G.R. No. G.R. No. Jan 2001; 350 Nos. L-
148196; 30 45358; 29 SCRA 446 25836-37; 31
Sep 2005; Jan 1937; 64 Jan 1981; 102
471 SCRA 431 Phil 331 SCRA 530

CIR v Fitness Almonte v De La Llana v Associated

by Design, Vasquez; Alba; GR No. Bank v CA;
Inc.; G.R. No. G.R. No. L-57883; 12 G.R. Nos.
215957; 09 95367; 23 Mar 1982; 107382 &
Nov 2016 May 1995; 112 SCRA 294 107612; 31
244 SCRA Jan 1996;
286 252 SCRA
620

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