8/16/2019 Case Digest_Lim Sio Wan

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3HR2 OCUMIN, Rochelle

RONQUILLO, Marc Jayson

SARMIENTO, Errol

 TACUS, Mitch aryll

!AMUIO, Honey La"reen

Allied Banking Corp. v. Lim Sio Wan (549 SCRA 504)

FACTS#CC ha$ $e%osite$ a &oney &ar'et %lace&ent (ith )ro$"cers *an'+ eorah ee Santos (as the

&oney &ar'et tra$er assi-ne$ to han$le #CC.s acco"nt+ /hen the %lace&ent &at"re$, #CC

$e&an$e$ the %ay&ent o0 the %rocee$s o0 the %lace&ent+ No1e&er , 453, Li& Sio /an

$e%osite$ (ith Allie$ *an'in- Cor%oration 6 Allied7 a &oney &ar'et %lace&ent 0or a ter& o0 3 $ays

ece&er 8, 453, a %erson clai&in- to e Li& Sio /an calle$ "% Cristina So, an o9cer o0 Allie$, an$

instr"cte$ the latter to %re:ter&inate Li& Sio /an.s &oney &ar'et %lace&ent, to iss"e a &ana-er.s

chec' an$ to -i1e the chec' to Santos (ho (o"l$ %ic' "% the chec'+ Li& Sio /an $escrie$ the

a%%earance o0 Santos+ Santos arri1e$ at the an' an$ si-ne$ the a%%lication 0or& 0or a &ana-er.s

chec' to e iss"e$+ The an' iss"e$ Mana-er.s Chec' in the na&e o0 Li& Sio /an, as %ayee, cross:chec'e$ ;For Payee’s Account Only ; an$ -i1en to Santos+ Allie$ &ana-er.s chec' (as $e%osite$ in

the acco"nt o0 #ili%inas Ce&ent Cor%oration 6FCC7 at Metro%olitan *an' an$ Tr"st Co

6Metrobank 7, (ith the 0or-e$ si-nat"re o0 Li& Sio /an as in$orser+ Metroan' sta&%e$ a -"aranty on

the chec', (hich rea$s< ; All prior endorsements and/or lack of endorsement guaranteed+; U%on the

%resent&ent o0 the chec', Allie$ 0"n$e$ the chec' e1en (itho"t chec'in- the a"thenticity o0 Li& Sio

/an.s %"r%orte$ in$orse&ent+ ece&er 4, 453, Li& Sio /an $e%osite$ (ith Allie$ a secon$ &oney

&ar'et %lace&ent to &at"re on Jan"ary 4, 45+ ece&er , 453, "%on the &at"rity $ate o0 the

=rst &oney &ar'et %lace&ent, Li& Sio /an (ent to Allie$ to (ith$ra( it+ She (as then in0or&e$ that

the %lace&ent ha$ een %re:ter&inate$ "%on her instr"ctions (hich she $enie$+ Li& Sio /an =le$

(ith the RTC a-ainst Allie$ to reco1er the %rocee$s o0 her =rst &oney &ar'et %lace&ent+ May 8,

45, Allie$ in0or&e$ Metroan' that the si-nat"re on the chec' (as 0or-e$+ Metroan' (ithhel$ thea&o"nt re%resente$ y the chec' 0ro& #CC+ Li& Sio /an therea0ter =le$ an a&en$e$ co&%laint to

incl"$e Metroan' as a %arty:$e0en$ant, alon- (ith Allie$+

ISS!Can a $ra(ee an' e hel$ liale to-ether (ith a collectin- an' 0or a 0or-e$ in$orse&ent e1en i0 it

(as latter that sta&%e$ the -"arantee on all %rior in$orse&ents>

RLI"# ?es+ The instit"tion iss"in- the chec' is @"st as liale as or &ore liale than the collectin- an'+ The

(arranty that the instr"&ent is -en"ine an$ in all res%ects (hat it %"r%orts to eB co1ers all the$e0ects in the instr"&ent aectin- the 1ali$ity thereo0, incl"$in- a 0or-e$ si-nat"re+

Allie$ an' (as ne-li-ent in iss"in- the &ana-er.s chec' in trans&ittin- it to Santos (itho"t (ritten

a"thoriDation+ Moreo1er, Metroan' in$orse$ the chec' (itho"t 1eri0yin- the a"thenticity o0 Li& Sio

/an.s in$orse&ent $es%ite the 0act that it (as cross:chec'e$ %ayale to %ayee.s acco"nt+ Since

#ili%inas Ce&ent Cor%oration 6#CC7 (as not %art o0 any ne-otiation sta-e, it (ill not e hel$ liale+

Lastly, )ro$"cers *an' (as "n@"stly enriche$ at the e%ense o0 Li& Sio /an since the %rocee$s (as

$e%osite$ in )ro$"cer.s *an' acco"nt in Metroan' (itho"t any @"sti=cation+

8/16/2019 Case Digest_Lim Sio Wan

2/2

3HR2 OCUMIN, Rochelle

RONQUILLO, Marc Jayson

SARMIENTO, Errol

 TACUS, Mitch aryll

!AMUIO, Honey La"reen

Allied Banking Corp. v. Lim Sio Wan (549 SCRA 504)

FACTS

Li& Sio /an $e%osite$ a &oney &ar'et %lace&ent in Allie$ *an'+ *e0ore its &at"rity, an

i&%ostor call an Allie$ o9cer instr"ctin- her to %re:ter&inate Li& Sio/an.s &oney

&ar'et %lace&ent an$ to iss"e a &ana-er.s chec' (hich (ill e %ic'e$ "% y Santos+

 The chec' (as iss"e$ to Santos an$ $e%osite$ in the acco"nt o0 #ili%inas Ce&ent

Cor%oration 6#CC7 at Metroan' (ith /an.s 0or-e$ si-nat"re as in$orser+ The $e%osit (as

sai$ to e the )ro$"cer *an'.s %ay&ent o0 its oli-ation to #CC+ U%on the &at"rity $ate

o0 the &oney &ar'et %lace&ent, /an (ent to Allie$ an' to (ith$ra( it+ Allie$ re0"se$ to%ay her, th"s, she =le$ a co&%laint+

ISS!

Can a $ra(ee an' e hel$ liale to-ether (ith a collectin- an' 0or a 0or-e$

in$orse&ent e1en i0 it (as latter that sta&%e$ the -"arantee on all %rior in$orse&ents>

RLI"#

 ?es+ The instit"tion iss"in- the chec' is @"st as liale as or &ore liale than the collectin-an'+ The (arranty that the instr"&ent is -en"ine an$ in all res%ects (hat it %"r%orts to

eB co1ers all the $e0ects in the instr"&ent aectin- the 1ali$ity thereo0, incl"$in- a

0or-e$ si-nat"re+

Allie$ an' (as ne-li-ent in iss"in- the &ana-er.s chec' in trans&ittin- it to Santos

(itho"t (ritten a"thoriDation+ Moreo1er, Metroan' in$orse$ the chec' (itho"t 1eri0yin-

the a"thenticity o0 Li& Sio /an.s in$orse&ent $es%ite the 0act that it (as cross:chec'e$

%ayale to %ayee.s acco"nt+ Since #ili%inas Ce&ent Cor%oration 6#CC7 (as not %art o0

any ne-otiation sta-e, it (ill not e hel$ liale+ Lastly, )ro$"cers *an' (as "n@"stlyenriche$ at the e%ense o0 Li& Sio /an since the %rocee$s (as $e%osite$ in )ro$"cer.s

*an' acco"nt in Metroan' (itho"t any @"sti=cation+