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EXPRESS
SAVINGS BANK INC.
GR No. 177697, 10 September 2014, FIRST DIVISION, (Perez, J.)
A depositary or collecting bank may resist or defend against a claim for breach of
warranty if the drawer or payee, or either the drawee bank or depositary bank was negligent and
such negligence substantially contribute to the loss from alteration.
Spouses Cesar V. Areza and Lolita Areza maintained two bank deposits
with Express Savings Bank (ESB). In the course of their business, Gerry Mambuhay
paid them Philippine Veterans Affairs Office (PVAO) checks, drawn against the
Philippine Veterans Bank (drawee), amounting to Php 1,800,000.00.
Later on, spouses Areza issued a check amounting to Php 500,000 however,
said check was dishonoured by the Bank for the reason “Deposit Under Hold”. The
Arezas contend that the Bank unilaterally and unlawfully put their account on hold.
The spouses requested that the Bank honor the check but was refused and closed
one of the accounts of the Spouses and retained the Saving Account where a certain
amount of money was transferred to the latter.
ISSUE:
Did the Bank have the right to debit Php 1,800,000 from the bank accounts
of the Areza’s when the drawee dishonoured the checks issued by the depositary
bank of Express Savings Bank on the ground of material alterations?
RULING:
As collecting banks, the Bank and Equitable-PCI Bank are both liable for
the amount of the materially altered checks. Since Equitable-PCI Bank is not a
party to this case and the Bank allowed its account with Equitable-PCI Bank to be
debited, it has the option to seek recourse against the latter in another forum.