GONZALES, Jerome DP.

BSLM 3C

SPS. CRISTINO & EDNA CARBONEL, petitioner

vs. METROPOLITAN BANK AND TRUST COMPANY, respondent
G.R. No. 178467 April 26, 2017

DOCTRINE:
Banking institutions are not liable for damages if they have not been negligent or careless in
fulfilling the level of diligence required by law or the nature of their responsibilities.

FACTS:
The petitioners filed a lawsuit, Civil Case No. 65725, against the respondent, alleging that the
respondent's release of five counterfeit $100 bills caused them to experience emotional distress,
mental anguish, public embarrassment, humiliation, and insult during their trip to Thailand. The
lower court ruled in favor of the respondent, leading Mr. and Mrs. Carbonell to file the current
lawsuit seeking moral damages of P10 million and exemplary damages, as they believe they are
entitled to compensation for the losses caused by the respondent's distribution of fake dollar bills.
They filed the case as a means of seeking compensation for the shame and disgrace they
experienced in Bangkok.

ISSUE:
Whether or not the BSP can be held liable for any damages that may have resulted from its
release of counterfeit dollar notes.

RULING:
No, the BSP is not liable in this case. Though the petitioners experienced humiliation due to their
unintentional use of counterfeit US dollars, the BSP did not violate any legal obligations towards
them as it followed the appropriate protocols and procedures in handling the US dollars in
question. The BSP is not responsible for damages as it did not act negligently or carelessly in
fulfilling the level of care required by law or the nature of its responsibilities as a banking
institution. Without evidence of bad faith, malice, or fraud on the part of the BSP, holding it
liable for damages in favor of the petitioners would be unjustified.