CommRev Cases (3)

7/25/2019 CommRev Cases (3)

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COMMREV - NEGO E. 5. CROSSED CHECKS AND EFFECTS OF CROSSING A CHECK 7 CASES

G.R. No. 172652 November 26, 2014

METROPOLITAN BANK AND TRUT !OMPAN",Petitioner, vs.#IL$RED N. !%IOK,Reson!ent.

LEONARDO&DE !ATRO, J.:

T"e t"ree #onso$i!%te! etitions "erein %$$ %ss%i$ t"e De#ision&o't"e Co(rt o' Ae%$s in CA-G.R. CV No. 775)* !%te! M%+ 5, )),%n! t"e Reso$(tionin t"e s%e #%se !%te! Nove/er , )).

Reson!ent 0i$'re! N. C"io1 2C"io13 "%! /een en4%4e! in !o$$%rtr%!in4 'or sever%$ +e%rs. He (s(%$$+ /(+s !o$$%rs 'ro Gon%$o 6.N(4(i! 2N(4(i!3 %t t"e e#"%n4e r%te rev%i$in4 on t"e !%te o' t"es%$e. C"io1 %+s N(4(i! eit"er in #%s" or %n%4er8s #"e#1, to /e

i#1e! ( /+ t"e $%tter or !eosite! in t"e $%tter8s /%n1 %##o(nt.N(4(i! !e$ivers t"e !o$$%rs eit"er on t"e s%e !%+ or on % $%ter!%te %s %+ /e %4ree! (on /et9een t"e, ( to % 9ee1 $%ter.C"io1 %n! N(4(i! "%! /een !e%$in4 in t"is %nner 'or %/o(t si toei4"t +e%rs, 9it" t"eir tr%ns%#tions r(nnin4 into i$$ions o' esos.For t"is (rose, C"io1 %int%ine! %##o(nts 9it" etitionersMetroo$it%n 6%n1 %n! Tr(st Co%n+ 2Metro/%n13 %n! G$o/%$6(siness 6%n1, In#. 2G$o/%$ 6%n13, t"e $%tter /ein4 t"en re'erre! to%s t"e Asi%n 6%n1in4 Coror%tion 2Asi%n 6%n13. C"io1 $i1e9iseentere! into % 6i$$s P(r#"%se :ine A4reeent 26P:A3 9it" Asi%n6%n1. ;n!er t"e 6P:A, #"e#1s !r%9n in '%vor o', or ne4oti%te! to,C"io1 %+ /e (r#"%se! /+ Asi%n 6%n1. ;on s(#" (r#"%se, C"io1

re#eives % !is#o(nte! #%s" e>5, (rs(%nt to t"e 6P:A, Asi%n 6%n1 ?/i$$s (r#"%se!?Se#(rit+ 6%n1 @ Tr(st Co%n+ 2S6TC3 M%n%4er8s C"e#1 2MC3 No.)7B in t"e %o(nt o' P5,5)),))).)) iss(e! in t"e n%e o'C"io1, %n! #re!ite! t"e s%e %o(nt to t"e $%tter8s S%vin4sA##o(nt No. -))7-)-)))&-.

On t"e s%e !%+, =($+ 5, &>>5, Asi%n 6%n1 iss(e! MC No. )5>5 int"e %o(nt o' P7,55),))).)) %n! MC No. )5>> in t"e %o(nto' P&),>)5,5).)) to Gon%$o 6ern%r!o, 9"o is t"e s%e erson %s

Gon%$o 6. N(4(i!. T"e t9o Asi%n 6%n1 %n%4er8s #"e#1s, 9it" %tot%$ v%$(e o' P&*,B55,5).)) 9ere iss(e! (rs(%nt toC"io18sinstr(#tion %n! 9%s !e/ite! 'ro "is %##o(nt. :i1e9ise (onC"io18s %$i#%tion, Metro/%n1 iss(e! C%s"ier8s C"e#1 2CC3 No.

))*) in t"e %o(nt o' P7,&,))).)) in t"e n%e o' Gon%$o6ern%r!o. T"e s%e 9%s !e/ite! 'ro C"io18s S%vin4s A##o(nt No.&5B-B5)B>55. T"e #"e#1s /o(4"t /+ C"io1 'or %+ee Gon%$o6ern%r!o %re t"ere'ore s(%rie! %s 'o$$o9s

Dr%9ee6%n1C"e#1 No.

Ao(nt 2P3 So(r#e o' '(n!

Asi%n 6%n1 MCNo. )5>5

7,55),))).))C"io18s A'()* B)*+ )v(*'

A--o*/ No. 2&007&0&

00201&,9"i#" "%! /een #re!ite! 9it"t"e

v%$(e o' BT! M! No. 07642P5,5)),))).))3 9"en t"e

$%tter 9%s (r#"%se! /+ Asi%n6%n1 'ro C"io1 (rs(%nt to

t"eir 6P:A.

Asi%n 6%n1 MCNo. )5>> &),>)5,5).))

2%44re4%tev%$(e o'

Asi%n 6%n1MCs

&*,B55,5).))3

Metro/%n1 CCNo. ))*)

7,&,))).)) C"io18s Me/rob)*+ )v(*'A--o*/ No. 154&4250455

TOTA: ,)*,5).))

C"io1 t"en !eosite! t"e t"ree #"e#1s 2Asi%n 6%n1 MC Nos. )5>5%n! )5>>, %n! Metro/%n1 CC No. ))*)3, 9it" %n %44re4%tev%$(e o' P,)*,5).)) in N(4(i!8s %##o(nt 9it" F%r E%st 6%n1 @Tr(st Co%n+ 2FE6TC3, t"e re!e#essor-in-interest o' etitioner6%n1 o' t"e P"i$iine Is$%n!s 26PI3. N(4(i! 9%s s(ose! to !e$iver;S&,),**.5), Bt"e !o$$%r e


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%4ree! (on, in t"e %'ternoon o' t"e s%e !%+. N(4(i!, "o9ever,'%i$e! to !o so, rotin4 C"io1 to re>5, t"e RTC iss(e! % teor%r+restr%inin4 or!er 2TRO3 !ire#tin4 t"e so(ses N(4(i! to re'r%in 'ro

resentin4 t"e s%i! #"e#1s 'or %+ent %n! t"e !eosit%r+ /%n1s'ro "onorin4 t"e s%e(nti$ '(rt"er or!ers 'ro t"e #o(rt.

Asi%n 6%n1 re'(se! to "onor MC Nos. )5>5 %n! )5>> in!e'eren#e to t"e TRO. Metro/%n1 #$%ie! t"%t 9"en it re#eive! t"eTRO on =($+ , &>>5, it re'(se! to "onor CC No. ))*) %n! stoe!%+ent t"ereon. Ho9ever, in % $etter %$so !%te! =($+ , &>>5, Ms.=o#e$+n T. P% o' FE6TC, C(/%o-Ar%net% 6r%n#" in'ore! Metro/%n1t"%t t"e TRO 9%s iss(e! % !%+ %'ter t"e #"e#1 9%s resente! 'or%+ent. T"(s, %##or!in4 to P%, t"e tr%ns%#tion 9%s %$re%!+#ons(%te! %n! FE6TC "%! %$re%!+ v%$i!$+ %##ete! t"e s%e. In%not"er $etter, FE6TC in'ore! Metro/%n1 t"%t ?t"e restr%inin4or!er in!i#%tes t"e n%e o' t"e %+ee o' t"e #"e#1 %s GONJA:ON;G;ID, /(t t"e #"e#1 isin '%#t %+%/$e to GONJA:O 6ERNARDO.0e /e$ieve t"ere is % !e'e#t in t"e restr%inin4 or!er %n! %s s(#"s"o($! not /in! +o(r /%n1.?7A$i#e River% o' Metro/%n1 re$ie! tos%i! $etters, reiter%tin4 Metro/%n18s osition to#o$+ 9it" t"e TRO$est it /e #ite! 'or #ontet /+ t"e tri%$ #o(rt. Ho9ever, %s 9o($!$%ter /e %$$e4e! in Metro/%n18s Ans9er /e'ore t"e tri%$ #o(rt,Metro/%n1 event(%$$+ %#1no9$e!4e! t"e #"e#1 9"en it /e#%e#$e%r t"%t not"in4 ore #%n /e !one to retrieve t"e ro#ee!s o' t"e#"e#1. Metro/%n1 '(rt"erore #$%ie! t"%t sin#e it is t"e iss(er o'CC No. ))*), t"e #"e#1 is its ri%r+ o/$i4%tion %n! s"o($! not

/e %e#te! /+ %n+ rior tr%ns%#tion /et9een t"e (r#"%ser 2C"io13%n! t"e %+ee 2N(4(i!3.

In t"e e%ntie, FE6TC, %s t"e #o$$e#tin4 /%n1, $e! % #o$%int%4%inst Asi%n 6%n1 /e'ore t"e P"i$iine C$e%rin4 Ho(se

Coror%tion 2PCHC3 Ar/itr%tion Coittee 'or t"e #o$$e#tion o' t"ev%$(e o' Asi%n 6%n1 MC No. )5>5 %n! )5>>, 9"i#" FE6TC "%!%$$e4e!$+ %$$o9e! N(4(i! to 9it"!r%9 on =($+ 5, &>>5, t"e s%e !%+t"e #"e#1s 9ere !eosite!. T"e #%se 9%s !o#1ete! %s Ar/i#oC%se No. >5-)*. T"e PCHC Ar/itr%tion Coittee $%ter re$%+e!, in% $etter !%te! A(4(st B, &>>5, its re'(s%$ to %ss(e (ris!i#tion overt"e #%se on t"e 4ro(n! t"%t %n+ ste it %+ t%1e i4"t /eisinterrete! %s (n!erinin4 t"e (ris!i#tion o' t"e RTC over t"e#%se or % vio$%tion o' t"e =($+ , &>>5 TRO.

On =($+ 5, &>>5, t"e RTC iss(e! %n Or!er !ire#tin4 t"e iss(%n#e o'% 9rit o' re$iin%r+ ro"i/itor+ in(n#tion

0HEREFORE, (on $in4 /+ t"e $%inti o' % s(L#ient /on! in t"e%o(nt o' P,)*,5).)), to /e ee#(te! in '%vor o' t"e!e'en!%nts (n!er t"e #on!ition t"%t t"e s%e s"%$$ %ns9er 'or9"%tever !%%4es t"e+ %+ s(st%in /+ re%son o' t"is in(n#tions"o($! t"e Co(rt ($ti%te$+ !eterine t"%t "e 9%s not entit$e!t"ereto, $et % 9rit o' re$iin%r+ ro"i/itor+ in(n#tion iss(erestr%inin4 %n! reventin4 !(rin4 t"e en!en#+ o' t"e #%se

%3 De'en!%nt Asi%n 6%n1 'ro%+in4 M%n%4er8s C"e#1s No.)5>5 in t"e %o(nt o' P7,55),))).)) %n! No. )5>> in

t"e %o(nt o' P&),>)5,5).)) %n!

/3 De'en!%nt Metro 6%n1 'ro%+in4 C%s"ier8s C"e#1 No.))*) in t"e %o(nt o' P7,&,))).)).

T"e %$i#%tion 'or re$iin%r+ %n!%tor+ in(n#tionis "ere/+!enie! %n! t"e or!er iss(e! on =($+ 7, &>>5 !ire#tin4 !e'en!%ntMetro 6%n1 2Ann%o$is, Green"i$$s 6r%n#"3 to %$$o9 t"e $%inti to9it"!r%9 t"e ro#ee!s o' C%s"ier8s C"e#1 No. ))*) in t"e%o(nt o' P7,&,))).)) is "ere/+ set %si!e.
http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt5http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt6http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt7http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt7http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt5http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt6http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt7


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T"e $%inti8s (r4ent otion to!e#$%re !e'en!%nts Asi%n 6%n1 %n!Metro 6%n1 in #ontet o' #o(rt $e! $%st =($+ &, &>>5 is "ere/+!enie! 'or $%#1 o' $e4%$ /%sis.

T"e 9rit o' re$iin%r+ ro"i/itor+ in(n#tion %n! % #o+ o' t"is

or!er s"%$$ /e serve! on t"e !e'en!%nts /+ De(t+ S"eri =oseM%rtine o' t"is 6r%n#".*

;on t"e $in4 /+ C"io1 o' t"e re>, reverse!itse$' %n! %$$o9e! t"e s%e.

In t"e Co$%int-in-Intervention, FE6TC #$%ie! t"%t it %$$o9e! t"eie!i%te 9it"!r%9%$ o' t"e ro#ee!s o' Asi%n 6%n1 MC Nos.)5>5 %n! )5>> on t"e 4ro(n! t"%t, %s %n%4er8s#"e#1s, t"e+9ere t"e !ire#t o/$i4%tions o' Asi%n 6%n1 %n! 9ere %##ete! in%!v%n#e /+ Asi%n 6%n1 /+ t"e ere iss(%n#e t"ereo'. FE6TCresente! t"e #"e#1s 'or %+ent on =($+ 5, &>>5 t"ro(4" t"ePCHC. Asi%n 6%n1, %s %!itte! in its Ans9er /e'ore t"e RTC,re#eive! t"e s%e on t"%t !%+. Conse>5 to (sti'+ t"e non%+ent t"ereo'.

In t"eir o9n Ans9er, t"e so(ses N(4(i! #$%ie! t"%t Gon%$o

N(4(i! "%! !e$ivere! (#" ore !o$$%rs t"%n 9"%t 9%s re, )), t"e RTC ren!ere! its De#ision, t"e !isositiveortion o' 9"i#" st%tes

0HEREFORE, (!4ent is ren!ere!

&. De#$%rin4 %s er%nent t"e 9rit o' re$iin%r+ in(n#tioniss(e! (n!er t"e Or!er o' =($+ 5, &>>5

. Or!erin4 G$o/%$ 6(siness 6%n1, In#.to %+ t"e $%intiC"io1

%.3 T"e %o(nt o' PB,>&,*7.7& 2$ess t"e%ttorne+8s 'ees o' P55,))).)) 9"i#" s"%$$ re%in9it" G$o/%$ 6(siness 6%n1, In#.3, $(s interest %tt"e $e4%$ r%te o' &Q.%. 'ro Sete/er ),&>>> (nti$ '($$+ %i!

/.3 T"e %o(nt o' P&5,))).)), reresentin4 t"ee#ess %o(nt !e/ite! 'ro t"e $%inti8s!eosit in "is %##o(nt 9it" G$o/%$ 6(siness 6%n1,In#. on =($+ 7, &>>5, $(s interest o' &Q.%. 'ro=($+ 7, &>>5, (nti$ '($$+ %i!

#.3 Attorne+8s 'ees e


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%. T"e %o(nt o' "is !eosit o' P7,&,))).)), $(sinterest o' &Q.%. 'ro =($+ 5, &>>5 (nti$ s%i!%o(nt is '($$+ %i! %n!

/. Attorne+8s 'ees o' 5Qo' t"e tot%$ %o(nt !(e

B. Or!erin4 So(ses Gon%$o 6. N(4(i! %n! M%rine$$% O.N(4(i! $i%/$e oint$+ %n! sever%$$+ 9it" G$o/%$ 6(siness6%n1, In#. %n! Metroo$it%n 6%n1 @ Tr(st Co%n+, In#. 'ort"e rese#tive %ttorne+8s 'ees

5. Disissin4 t"e #o$%int-in-interventiono' 6PI 'or $%#1 o'erit

. Or!erin4 t"e !e'en!%nts%n! t"e intervenorto %+, oint$+%n! sever%$$+, t"e #osts o' s(it.>

2E"%ses s($ie!.3

T"e RTC "e$! t"%t N(4(i! '%i$e! to rove t"e !e$iver+ o' !o$$%rs toC"io1. A##or!in4 to t"e RTC, N(4(i!8s #$%i t"%t C"io1 9%s sti$$$i%/$e 'or seven !is"onore! C"in% 6%n1in4 Coror%tion 2C6C3#"e#1s 9it" % tot%$ 9ort" o'P7,>*B,)).)) is "i4"$+ !o(/t'($ sin#es(#" #$%i 9%s not resente! %s % #o(nter#$%i in t"e #%se.F(rt"erore, t"e #o(rt r($e! t"%t t"e #erti#%tion o' C6C st%tin4t"e re%sons&)'or t"e sto %+ent or!er ?%re in!i#%tive o' C"io18snon-$i%/i$it+ to N(4(i!.? T"e RTC '(rt"er note! t"%t t"ere 9%s %#riin%$ #%se $e! /+ C"io1 %4%inst N(4(i! on M%r#" >, &>> 'orest%'% %n! ot"er !e#eit on %##o(nt o' N(4(i!8s %$$e4e! '%i$(re to

ret(rn t"e ori4in%$s o' t"e seven C6C #"e#1s.&&

T"e RTC 9ent on to r($e t"%t %n%4er8s #"e#1s %n! #%s"ier8s#"e#1s %+ /e t"e s(/e#t o' % Sto P%+ent Or!er 'ro t"e(r#"%ser on t"e /%sis o' t"e %+ee8s #ontr%#t(%$ /re%#". Ase$%n%tion 'or t"is r($in4, t"e RTC %!ote! its rono(n#eents9"en it iss(e! t"e =($+ 5, &>>5 Or!er

De'en!%nt N(4(i!8s %r4(ent t"%t t"e in(n#tion #o($! ren!er%n%4er8s %n! #%s"ier8s#"e#1s (n9ort"+ o' t"e '%it" t"e+ s"o($!"%ve %n! #o($! i%ir t"eir n%t(re %s in!een!ent (n!ert%1in4s o't"e iss(in4 /%n1s is ro/%/$+ %n (n!istin4(is"e! si$i#%tion.

0"i$e t"e %r4(ent %+ /e %$i#%/$e to s(#" #"e#1s in 4ener%$, it!oes not %!e


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Art. &B>. T"e %+ent o' !e/ts inone+ s"%$$ /e %!e in t"e#(rren#+ sti($%te!, %n! i' it is not ossi/$e to !e$iver s(#"#(rren#+, t"en in t"e #(rren#+ 9"i#" is $e4%$ ten!er in t"eP"i$iines. T"e !e$iver+ o' roissor+ notes %+%/$e to or!er, or/i$$s o' e#"%n4e or ot"er er#%nti$e !o#(ents s"%$$ ro!(#e t"e

ee#t o' %+ent on$+ 9"en t"e+ "%ve /een #%s"e!, or 9"ent"ro(4" t"e '%($t o' t"e #re!itor t"e+ "%ve /een i%ire!.

In t"e e%ntie, t"e %#tion !erive! 'ro t"e ori4in%$ o/$i4%tions"%$$ /e "e$! in t"e %/e+%n#e. T"e RTC 9ent on to r($e t"%t !(e tot"e tie$+ servi#e o' t"e TRO %n! t"e in(n#tion, t"e v%$(e o' t"et"ree #"e#1s re%ine! 9it" G$o/%$ 6%n1 %n! Metro/%n1.&T"e RTC#on#$(!e! t"%t sin#e N(4(i! !i! not "%ve % v%$i! tit$e to t"ero#ee!s o' t"e %n%4er8s %n! #%s"ier8s #"e#1s, C"io1 is entit$e!to /e %i! /%#1 ever+t"in4 "e "%! %i! to t"e !r%9ees 'or t"e#"e#1s.&B

0it" rese#t to G$o/%$ 6%n1, t"e RTC r($e! t"%t t"e entire %o(nto' PB,>&,*7.7& it re#overe! 'ro S6TC 'ro t"e Sete/er &5,&>>7 PCHC De#ision, %s ree#te! in t"e Sete/er >, &>>>C"%r4e S$i No. &&B>77, $ess t"e s( o' P5,))).)) %9%r!e! /+t"e %r/itr%tion #oittee8s !e#ision %s %ttorne+8s 'ees, s"o($! /e%i!to C"io1, 9it" interest %t &Q er %nn( 'ro Sete/er ),&>>> (nti$ '($$ %+ent. T"e RTC $i1e9ise or!ere! G$o/%$ 6%n1 to%+ C"io1 t"e %o(nt o' P&5,>).)), %n %o(nt !e/ite! 'roC"io18s %##o(nt %s %+ent 'or o(tst%n!in4 /i$$s (r#"%se.&5

0it" rese#t to Metro/%n1, t"e RTC r($e! t"%t it s"o($! %+

C"io1 P7,&,))).)), t"e %o(nt %i! /+ C"io1 to (r#"%se t"e CC,$(s interest o' & er#ent er %nn( 'ro =($+ 5,&>>5 (nti$ '($$%+ent. T"e RTC e$%ine! t"is n!in4 %s 'o$$o9s

T"e s%e #on#$(sion is tr(e 9it" rese#t to Metro 6%n1, 9it" 9"ot"e '(n!s %o(ntin4 to P7,&,))).)) 'or t"e (r#"%se o' CC No.))*) "%s re%ine!. A##or!in4 to C"io1, Metro 6%n1 (se! s(#"'(n!s in its oer%tions.

In t"e "e%rin4 on M%+ &7, ))&, :it% S%$on4% T%n 9%s oere! %s %9itness 'or Metro 6%n1, /(t in $ie( o'"er testion+, t"e %rties%4ree! to sti($%te on t"e 'o$$o9in4 %s "er testion+, to 9it

&3 T"%t Metro 6%n1 %i! t"e %o(nt o' CC No. ))*)3 T"%t t"e %+ent on =($+ &, &>>5 9%s %!e 9"i$e t"e

TRO o' =($+ 5, &>>5 9%s in 'or#e3 T"%t t"e %+ent on =($+ &, &>>5 9%s on t"e t"ir!

#$e%rin4 o' CC No. ))*) %n!

B3 T"%t t"e PCHC R($e /oo1 9%s t"e %(t"orit+ on t"e r($es%n! re4($%tions on t"e #$e%rin4 oer%tions o' /%n1s.

T"e %+ent to FE6TC /+ Metro 6%n1 o' CC No. ))*) on =($+ &,&>>5 9%s %n oen !e%n#e o' t"e TRO o' =($+ , &>>5. Metro 6%n18s6r%n#" M%n%4er A$i#e River%, t"ro(4" "er $etter o' =($+ &), &>>5 toFE6TC %s t"e #o$$e#tin4 /%n1, ret(rne! t"e CC to FE6TC in#o$i%n#e 9it" t"e TRO 9"i#" 9%s re#eive! %/o(t &&) noon o'=($+ , &>>>. Hen#e, Metro 6%n1 s"o($! not "%ve %i! /e#%(se t"eTRO 9%s serve! 9it"in t"e B-"o(r erio! to #$e%r #"e#1s.Moreover, t"e %+ent, /ein4 %!e on t"ir! #$e%rin4, 9%s(n(stie! 'or vio$%tin4 eistin4 re4($%tions, %rti#($%r$+ %r%4r%"

& o' t"e C$e%rin4 Ho(se Oer%tin4 Meo 2CHOM3, ee#tiveSete/er &, &>*B, 9"i#" ro"i/ite! t"e re#$e%rin4 o' % #"e#1 %'terits rst resent%tion i' it 9%s ret(rne! 'or t"e re%son o' ?sto%+ent? or ?#$ose! %##o(nt.?

It %$so sees t"%t Metro 6%n1 %i! t"e CC 9it"o(t rst #"e#1in49"et"er, in '%#t, %n+ %#t(%$ %+ent o' t"e #"e#1s "%! /een%!e on =($+ 5, &>>5 to t"e %+ee 9"en t"e #"e#1s 9ere !eosite!in %+ee8s %##o(nt 9it" FE6TC on =($+ 5, &>>5. T"e re#or!s s"o9 nos(#" %+ent 9%s ever %!e to ren!er t"e TRO o' =($+ , &>>5 ort"e 9rit o' re$iin%r+ in(n#tion %$ie! 'or oot %n! %#%!ei#.

=ess+ A. De4%os %!ote! /+ Metro 6%n1 %s its o9n 9itness inin(n#tion "e%rin4 o' =($+ B, &>>5 st%te! t"%t t"e %+ent o' t"e #"e#1s #onsiste! o' t"e %##o(ntin4 entr+ %!e %t t"e PCHC!(rin4 t"e resentin4 ro#ess /+ !e/itin4 t"e rese#tive %##o(ntso' t"e !r%9ees %n! #re!itin4 t"e %##o(nt o' #o$$e#tin4 /%n1 FE6TC.et, %s %$re%!+ 'o(n! "erein%/ove, s(#" ro#ess 9%s reverse! !(eto t"e ret(rn /+ t"e !r%9ees o' t"e #"e#1s 9"i#" t"e+ !is"onore!on %##o(nt o' t"e TRO.

A$so, De4%os, testi'+in4 on =%n(%r+ &7, )) 'or intervenor 6PI,9%s %s1e! in 9"%t 'or 9%s t"e 9it"!r%9%$ o' t"e %o(nts o' t"e

#"e#1s %!e /+ N(4(i! on =($+ 5, &>>5, t"%t is, 9"et"er- &3 #%s"5
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9it"!r%9%$ or 3 #re!it to N(4(i!8s %##o(nt or 3 !r%'t iss(e! toN(4(i!. His re$+ 9%s t"%t on$+ t"e /%n18s /r%n#" 9"i#" servi#e!t"e %+ee8s %##o(nt #o($! rovi!e t"e %ns9er. et, 6PI !i! notresent %n+ #oetent ersonne$ 'ro t"e /r%n#" #on#erne! toen$i4"ten t"e Co(rt on t"is %teri%$ oint.

T"is %o(nt o' P7,&,))).)), "%vin4 re%ine! 9it" Metro 6%n1sin#e t"e servi#e o' t"e TRO o' =($+ , &>>5 %n! t"e 9rit o're$iin%r+ in(n#tion iss(e! (n!er t"e Or!er o' =($+ 5, &>>*,s"o($! /e ret(rne! to C"io1 9it" interest o' &Q.%. 'ro =($+ 7,&>>5 (nti$ '($$ %+ent.&

2Cit%tions oitte!.3

T"e RTC $i1e9ise !enie! 6PI8s #o$%int-in-intervention to re#overt"e v%$(e o' t"e t"ree #"e#1s 'ro !r%9ees G$o/%$ 6%n1 %n!Metro/%n1 'or $%#1 o' erit. T"e RTC, %'ter reri%n!in4 G$o/%$6%n1 %n! Metro/%n1 'or si!in4 9it" 6PI on t"is iss(e, "e$! t"%t 6PI,%s % ere #o$$e#tin4 /%n1 o' t"e %+ee 9it" % voi! tit$e to t"e#"e#1s, "%! no v%$i! #$%i %s to t"e %o(nts o' s(#" #"e#1s. T"eRTC e$%ine!

First$+ 6PI, /ein4 % #o$$e#tin4 /%n1in re$%tion to t"e #"e#1s, 9%sere$+ er'orin4 #o$$e#tion servi#es %s %n %4ent o' N(4(i!, t"e%+ee. I', %s 'o(n! "erein/e'ore, N(4(i! #o($! not "%ve $e4%$ tit$eto t"e #"e#1s, it 'o$$o9s t"%t 6PI #o($! not st%1e %n+ #$%i 'or tit$e/etter t"%n N(4(i!8s o9n voi! tit$e. Conse>5. Fin%$$+ As e%r$ier note! %n! !is#(sse!, t"ere is no evi!en#eo' %n+ rior v%$i! %+ent /+ t"e #o$$e#tin4 /%n1 to s(ort its#$%i o' t"e %o(nts o' t"e #"e#1s %4%inst t"e !e'en!%nt/%n1s.&72Cit%tion oitte!.3

T"e RTC "e$! G$o/%$ 6%n1 %n! Metro/%n1 $i%/$e 'or %ttorne+8s 'eese


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s%e Reso$(tion, t"e Co(rt o' Ae%$s !enie! C"io18s Motion toDisiss.

On M%+ 5, )), t"e Co(rt o' Ae%$s ren!ere! t"e %ss%i$e!De#ision %Lrin4 t"e RTC De#ision 9it" o!i#%tions. T"e '%$$o o'

t"e De#ision re%!s

0HEREFORE, reises #onsi!ere!, t"e De#ision !%te! A(4(st >,))) o' t"e RTC, 6r%n#" >, (eon Cit+ is AFFIRMED 9it" t"e'o$$o9in4 MODIFICATIONS

&.3 T"e #ontr%#t to /(+ 'orei4n #(rren#+ in t"e %o(nt o'&,),**.5) /et9een $%inti-%e$$ee 0i$'re! N. C"io1%n! !e'en!%nt Gon%$o 6. N(4(i! is "ere/+ res#in!e!.Coro$$%ri$+, M%n%4er8s C"e#1 Nos. )5>5 %n! )5>> %n!C%s"ier8s C"e#1 No. ))*) %re or!ere! #%n#e$$e!.

.3 G$o/%$ 6(siness Ho$!in4s, In#. is or!ere! to #re!itS%vin4s A##o(nt No. -))7-)-)))&- 9it"

%3 T"e %o(nt o' P5,5)),))).)), $(s interest %tBQ 'ro Sete/er >, &>>> (nti$ 9it"!r%9n /+$%inti-%e$$ee

/3 T"e %o(nt o' P&5,>).)), $(s interest %t BQ'ro =($+ 7, &>>5 (nti$ 9it"!r%9n /+ $%inti-%e$$ee.

.3 Metroo$it%n 6%n1 @ Tr(st Co%n+ is or!ere! to #re!it

S%vin4s A##o(nt No. &5B-B5)B>55 t"e %o(nto' P7,&,))).)), 9it" interest %t Q er %nn( 'ro =($+&, &>>5 (nti$ t"e s%e is 9it"!r%9n

B.3 T"e So(ses Gon%$o 6. N(4(i! %n! M%rine$$% O. N(4(i!%re or!ere! to %+ %ttorne+8s 'ees e& o' t"e Civi$ Co!erovi!es % $e4%$ /%sis o' t"e ri4"t o' (r#"%sers o' MCs %n! CCs to

%1e % sto %+ent or!er on t"e 4ro(n! o' t"e '%i$(re o' t"e

%+ee to er'or "is o/$i4%tion to t"e (r#"%ser. T"e %e$$%te#o(rt r($e! t"%t s(#" #$%i 9%s i$ie!$+ in#oror%te! in C"io18s#o$%int. T"e Co(rt o' Ae%$s "e$!

6+ !eositin4 t"e s(/e#t #"e#1s to t"e %##o(nt o' N(4(i!, C"io1

"%! %$re%!+ er'ore! "is o/$i4%tion (n!er t"e #ontr%#t, %n! t"es(/se&. T"e o9er to res#in! o/$i4%tions is i$ie! in re#iro#%$ones, in #%se one o' t"e o/$i4ors s"o($! not #o$+ 9it" 9"%t isin#(/ent (on "i.

T"e in(re! %rt+ %+ #"oose /et9een t"e '($$$ent %n! t"eres#ission o' t"e o/$i4%tion, 9it" t"e %+ent o' !%%4es in eit"er#%se. He %+ %$so see1 res#ission, even %'ter "e "%s #"osen'($$$ent, i' t"e $%tter s"o($! /e#oe iossi/$e.

T"e #o(rt s"%$$ !e#ree t"e res#ission #$%ie!, (n$ess t"ere /e (st#%(se %(t"oriin4 t"e in4 o' % erio!.

A$t"o(4" t"e #o$%int %


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its interest. T"e o/e#t o' t"e #ontr%#t "erein to /(+ 'orei4n#(rren#+ is t"e eso-v%$(e o' t"e !o$$%rs /o(4"t /(t in t"e 'or o'ne4oti%/$e instr(ents M%n%4er8s C"e#1C%s"ier8s C"e#1. Hen#e,rese#tin4 t"e ne4oti%tion t"ereo', %n! in or!er to %or! #o$etere$ie' to C"io1, t"ere %rose t"e ne#essit+ 'or t"e iss(%n#e o' t"e

in(n#tion restr%inin4 t"e %+ent o' t"e s(/e#t #"e#1s 9it" t"een! in vie9 o' t"e event(%$ ret(rn o' t"e ro#ee!s to 4ive ee#t toArti#$e &*5. In ot"er 9or!s, t"e in(n#tive re$ie' 9%s ne#ess%r+ inor!er not to ren!er inee#t(%$ t"e (!4ent in t"e inst%nt #%se. 0e>7 PCHC De#ision. T"einterest 9%s %$so re!(#e! 'ro &Q er %nn( to t"%t iose!(on s%vin4s !eosits, 9"i#" 9%s est%/$is"e! !(rin4 t"e tri%$ %s BQer %nn(.

As re4%r!s Metro/%n1, t"e %e$$%te #o(rt note! t"%t t"ere 9%s noevi!en#e %s to t"e interest r%te iose! (on s%vin4s !eosits %tMetro/%n1. Metro/%n1 9%s or!ere! to #re!it t"e %o(nto' P7,&,))).)) to C"io18s S%vin4s A##o(nt No. &5B-B5)B>55,9it" interest %t Q er %nn(.

*
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G$o/%$ 6%n1 %n! 6PI $e! se%r%te Motions 'or Re#onsi!er%tion o't"e M%+ 5, )) Co(rt o' Ae%$s8 De#ision. On Nove/er , )),t"e Co(rt o' Ae%$s !enie! t"e Motions 'or Re#onsi!er%tion.

Metro/%n1 2G.R. No. &753, 6PI 2G.R. No. &75)3, %n! G$o/%$

6%n1 2G.R. No. &75>B3 $e! 9it" t"is Co(rt se%r%te Petitions 'orRevie9 on Certior%ri. In Reso$(tions !%te! Fe/r(%r+ &, ))7 B%n!M%r#" &, ))7,5t"is Co(rt reso$ve! to #onso$i!%te t"e t"reeetitions. Metro/%n1 s(/itte! t"e 'o$$o9in4 iss(es 'or t"e#onsi!er%tion o' t"is Co(rt

2A3 0HETHER OR NOT THE HONORA6:E CO;RT OF APPEA:SERRED IN R;:ING THAT ?IT IS :EGA:: POSSI6:E FOR AP;RCHASER OF A MANAGER8S CHECK OR CASHIER8S CHECKTO STOP PAMENT THEREON THRO;GH A CO;RT ORDER ONTHE GRO;ND OF THE PAEE8S A::EGED 6REACH OFCONTRACT;A: O6:IGATION AMO;NTING TO AN A6SENCE

OF CONSIDERATION THEREFOR.?

263 GRANTING ARG;ENDO THAT A MANAGER8S CHECK ORCASHIER8S CHECK, ?IN VIE0 OF THE PEC;:IARCIRC;MSTANCES OF THIS CASE? MA 6E S;6=ECT TO A STOPPAMENT ORDER 6 THE P;RCHASER THEREOF THRO;GH ACO;RT ORDER, 0HETHER OR NOT THE HONORA6:E CO;RTOF APPEA:S ERRED IN CONC:;DING THAT PETITIONERHEREIN ?HAD KNO0:EDGE OF CIRC;MSTANCES THAT0O;:D DEFEAT THE TIT:E OF THE PAEE TO THE CHECKS?0ITHO;T, HO0EVER, CITING AN SPECIFIC EVIDENCE

0HICH 0O;:D PROVE THE EUISTENCE OF S;CHKNO0:EDGE. 2C3 0HETHER OR NOT THE HONORA6:ECO;RT OF APPEA:S ERRED IN S;STAINING THE TRIA:CO;RT8S ORDER FOR PETITIONER HEREIN ?TO PA 2TOCHIOK3 THE VA:;E OF CASHIER8S CHECK NO. ))*) IN THEAMO;NT OF P7,&,))).)), 0HICH 0AS DE6ITED AGAINSTCHIOK8S SAVINGS ACCO;NT W &5B-B5)B>55 ON THEO6SERVATION THAT THE PAMENT TO FE6TC 6 METRO6ANKOF CC NO. ))*)ON =;: &, &>>5 0AS AN OPENDEFIANCE OF THE TRO OF =;: , &>>5.?

6PI, on t"e ot"er "%n!, resente! t"e 'o$$o9in4 iss(es

I. 0"et"er or not t"e Co(rt o' Ae%$s !etr%#te! 'ro 9e$$-sett$e! #on#ets %n! rin#i$es in #oer#i%$ $%9re4%r!in4 t"e n%t(re, #%(ses, %n! ee#ts o' % %n%4er8s#"e#1 %n! #%s"ier8s #"e#1in r($in4 t"%t t"e o9er o't"e #o(rt #%n /e invo1e! /+ t"e (r#"%ser C"io1 in %

roer %#tion, 9"i#" t"e Co(rt s(/st%nti%$$+ #onstr(e!%s % res#issor+ %#tion or t"e o9er to res#in! o/$i4%tions(n!er Arti#$e &&>& o' t"e Civi$ Co!e.

II. 0"et"er or not t"e Honor%/$e Co(rt o' Ae%$s erre! inr($in4 t"%t 9"ere % (r#"%ser invo1es res#ission !(e to%n %$$e4e! /re%#" o' t"e %+ee8s #ontr%#t(%$ o/$i4%tion,it is !eee! %s ?e#($i%r #ir#(st%n#e? 9"i#" (sties %sto %+ent or!er iss(e! /+ t"e (r#"%ser or %teor%r+ restr%inin4 or!erin(n#tion 'ro % Co(rt torevent %+ent o' % M%n%4er8s C"e#1 or % C%s"ier8sC"e#1.

III. 0"et"er or not t"e Honor%/$e Co(rt o' Ae%$s erre! in

r($in4 t"%t (!i#i%$ %!issions in t"e $e%!in4s o' N(4(i!,6PI, Asi%n 6%n1, Metro/%n1 %n! even C"io1 "ise$' t"%tN(4(i! "%! 9it"!r%9n t"e ro#ee!s o' t"e #"e#1s 9i$$not !e'e%t C"io18s ?s(/st%nti%$ ri4"t? to restr%in t"e!r%9ee /%n1 'ro %+in4 6PI, t"e #o$$e#tin4 /%n1 orresentin4 /%n1 in t"is #%se 9"o %i! t"e v%$(e o' t"eC%s"ier8sM%n%4er8s C"e#1s to t"e %+ee.7

Fin%$$+, G$o/%$ 6%n1 re$+ (on t"e 'o$$o9in4 4ro(n!s in its etition9it" t"is Co(rt

A. THE CO;RT OF APPEA:S GRAVE: ERRED IN R;:ING THATPETITIONER G:O6A: 6ANK HAD NO =;STIFICATION FOR ITS RIGHTOF RECO;RSE AGAINST RESPONDENT CHIOK NOT0ITHSTANDINGTHE C:EAR AND ;NMISTAKA6:E PROVISIONS OF THE 6I::SP;RCHASE AGREEMENT.

6. THE CO;RT OF APPEA:S GRAVE: ERRED IN MAKING PETITIONERG:O6A: 6ANK :IA6:E FOR INTEREST OF BQ PER ANN;M DESPITETHE FACT THAT

&3 RESPONDENT DID NOT ASK FOR S;CH RE:IEF IN HISCOMP:AINT

>
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3 RESPONDENT HAD 0AIVED HIS RIGHT TO AN INTERESTAND

3 THERE IS NO EVIDENCE ON RECORD AS THE 6ASIS FORAN INTEREST.*

6e'ore !e$vin4 into t"e erits o' t"ese #%ses, 9e s"%$$ rst !isoseo' % ro#e!(r%$ !eve$oent !(rin4 t"eir en!en#+ 9it" t"e Co(rt.

Joint Manifestation and Motion allegedly led by Metrobank, GlobalBank and respondent Chiok

On M%+ *, )&, t"is Co(rt re#eive! % =oint M%ni'est%tion %n!Motion %$$e4e!$+ $e! /+ etitioners Metro/%n1, G$o/%$ 6%n1, %n!reson!ent C"io1, 9"i#" re%!s

PETITIONERS METROPO:ITAN 6ANK @ TR;ST COMPAN @ G:O6A:

6;SINESS 6ANK, INC., %n! RESPONDENT 0I:FRED N. CHIOK, /+t"eir rese#tive #o(nse$s, (nto t"is Honor%/$e Co(rt, rese#t'($$+st%te t"%t %'ter % t"oro(4" #onsi!er%tion, t"e %rties "erein "%ve!e#i!e! to 'ore4o t"eir rese#tive #$%is %4%inst e%#" ot"er,in#$(!in4, %st, resent %n!or #ontin4ent, in re$%tion to t"e %/overe'eren#e! #%ses.

P R A E R

0HEREFORE, it is rese#t'($$+ r%+e! t"%t no '(rt"er %#tion /et%1en /+ t"is Honor%/$e Co(rt on t"e 'ore4oin4 etitions, t"%t t"einst%nt ro#ee!in4s /e !e#$%re! C:OSED %n! TERMINATED, %n!

t"%t %n Or!er /e ren!ere! !isissin4 t"e %/ove-re'eren#e! #%ses9it" re(!i#e.

In t"e %/ove =oint M%ni'est%tion %n! Motion, reson!ent C"io1 9%snot reresente! /+ "is #o(nse$ o' re#or!, Cr( D(ri%n A$!%+ %n!Cr(-M%tters, /(t 9%s %ssiste! /+ Esirit( Vit%$es Esirit( :%9OL#e, 9it" Att+. Ces%r D. Vit%$es %s si4n%tor+, /+ 9%+ o' se#i%$%e%r%n#e %n! %ssist%n#e.

On =(ne &>, )&, t"is Co(rt iss(e! % Reso$(tion re, )&, 6PI $e! its #oent to t"e =oint M%ni'est%tion%n! Motion, oosin4 t"e s%e'or /ein4 %n i$ie! ro#e!(r%$s"ort#(t to % Coroise A4reeent. It %verre! t"%t 9"i$e t"e#o(rts en#o(r%4e %rties to %i#%/$+ sett$e #%ses, s(#" sett$eents%re stri#t$+ s#r(tinie! /+ t"e #o(rts 'or %rov%$. 6PI %$so ointe!o(t t"%t t"e =oint M%ni'est%tion %n! Motion 9%s not s(orte! /+%n+ re


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On =%n(%r+ ), )&B, G$o/%$ 6%n1 $e! % Coent to Att+. Cr(8sMotion 'or Re#onsi!er%tion on /e"%$' o' C"io1, r%+in4 t"%t s%i!Motion /e e(n4e! 'ro t"e re#or!s 'or '%i$(re o' Att+. Cr( toin!i#%te t"e n(/er %n! !%te o' iss(e o' "is MC:E Certi#%te o'Co$i%n#e or Certi#%te o' Eetion 'or t"e ie!i%te$+

re#e!in4 #o$i%n#e erio!.

As '%r %s t"is Co(rt is #on#erne!, t"e #o(nse$ o' re#or! o'reson!ent C"io1 is sti$$ Cr( D(ri%n A$!%+ @ Cr(-M%tters. T"ere2Cit%tion oitte!.3

T"ere'ore, 9"i$e 9e s"o($! in!ee! re


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%$i#%/$e to #%s"ier8s #"e#1s, %n! vi#e vers%. T"e RTC ee#tive$+r($e! t"%t %+ent o' %n%4er8s %n! #%s"ier8s #"e#1s %re s(/e#tto t"e #on!ition t"%t t"e %+ee t"ereo' #o$ies 9it" "iso/$i4%tions to t"e (r#"%ser o' t"e #"e#1s

T"e !e!i#%tion o' s(#" #"e#1s (rs(%nt to se#i# re#iro#%$(n!ert%1in4s /et9een t"eir (r#"%sers %n! %+ees %(t"oriesres#ission /+ t"e 'orer to revent s(/st%nti%$ %n! %teri%$!%%4e to t"ese$ves, 9"i#" %(t"orit+ in#$(!es stoin4 t"e%+ent o' t"e #"e#1s.

Moreover, it sees to /e '%$$%#io(s to "o$! t"%t t"e (n#on!ition%$%+ent o' %n%4er8s %n! #%s"ier8s #"e#1s is t"e r($e. To /e4in9it", /ot" %n%4er8s%n! #%s"ier8s #"e#1s %re sti$$ s(/e#t tore4($%r #$e%rin4 (n!er t"e re4($%tions o' t"e 6%n41o Sentr%$ n4Pi$iin%s, % '%#t /orne o(t /+ t"e 6SP %n(%$ 'or /%n1s %n!intere!i%ries, 9"i#" rovi!es, %on4 ot"ers, in its Se#tion &).&,

#, %s 'o$$o9s

#. Ites 'or #$e%rin4. A$$ #"e#1s %n! !o#(ents %+%/$e on !e%n!%n! !r%9n %4%inst % /%n1/r%n#", instit(tion or entit+ %$$o9e! to#$e%r %+ /e e#"%n4e! t"ro(4" t"e C$e%rin4 OL#e inM%ni$% %n!t"e Re4ion%$ C$e%rin4 ;nits in re4ion%$ #$e%rin4 #enters !esi4n%te!/+ t"e Centr%$ 6%n1 .

T"e RTC %!!e! t"%t sin#e %n%4er8s %n! #%s"ier8s #"e#1s %re t"e

s(/e#t o' re4($%r #$e%rin4, t"e+ %+ #onse


13/44


t"e '(n!s reresente! /+ t"e #"e#1 %re tr%ns'erre! 'ro t"e #re!ito' t"e %1er to t"%t o' t"e %+ee or "o$!er, %n! 'or %$$ intents %n!(roses, t"e $%tter /e#oes t"e !eositor o' t"e !r%9ee /%n1,9it" ri4"ts %n! !(ties o' one in s(#" sit(%tion. 0"ere % #"e#1 is#ertie! /+ t"e /%n1 on 9"i#" it is !r%9n, t"e #erti#%tion is

e5 %n! )5>> %n! C%s"ier8s C"e#1 No.))*) %re or!ere! #%n#e$$e!.*

A##or!in4 to t"e Co(rt o' Ae%$s, 9"i$e s(#" res#ission 9%s notentione! in C"io18s Aen!e! Co$%int, t"e s%e 9%s evi!ent'ro "is r%+er to /e !e#$%re! t"e $e4%$ o9ner o' t"e ro#ee!s o't"e s(/e#t #"e#1s %n! to /e %$$o9e! to 9it"!r%9 t"e s%e. Sin#eres#ission #re%tes t"e o/$i4%tion to ret(rn t"e t"in4s 9"i#" %re t"eo/e#t o' t"e #ontr%#t, to4et"er 9it" t"e 'r(its, t"e ri#e %n! t"einterest,>in(n#tive re$ie' 9%s ne#ess%r+ to restr%in t"e %+ent o'

&


14/44


t"e s(/e#t #"e#1s 9it" t"e en! in vie9 o' t"e ret(rn o' t"ero#ee!s to C"io1.B)

T"(s, %s it 9%s #onstr(e! /+ t"e Co(rt o' Ae%$s, t"e Aen!e!Co$%int o' C"io1 9%s in re%$it+ %n %#tion 'or res#ission o' t"e

#ontr%#t to /(+ 'orei4n #(rren#+ /et9een C"io1 %n! N(4(i!. T"eCo(rt o' Ae%$s t"en ro#ee!e! to #%n#e$ t"e %n%4er8s %n!#%s"ier8s #"e#1s %s % #onse&. T"e o9er to res#in! o/$i4%tions is i$ie! in re#iro#%$ones, in #%se one o' t"e o/$i4ors s"o($! not #o$+ 9it" 9"%t isin#(/ent (on "i.

T"e in(re! %rt+ %+ #"oose /et9een t"e '($$$ent %n! t"eres#ission o' t"e o/$i4%tion, 9it" t"e %+ent o' !%%4es in eit"er#%se. He %+ %$so see1 res#ission, even %'ter "e "%s #"osen'($$$ent, i' t"e $%tter s"o($! /e#oe iossi/$e.

T"e #o(rt s"%$$ !e#ree t"e res#ission #$%ie!, (n$ess t"ere /e (st#%(se %(t"oriin4 t"e in4 o' % erio!.

T"is is (n!erstoo! to /e 9it"o(t re(!i#e to t"e ri4"ts o' t"ir!ersons 9"o "%ve %#& o' t"eCivi$ Co!e #%n on$+ /e eer#ise! in %##or!%n#e 9it" t"e rin#i$e o're$%tivit+ o' #ontr%#ts (n!er Arti#$e &&& o' t"e s%e #o!e, 9"i#"rovi!es

Art. &&&. Contr%#ts t%1e ee#t on$+ /et9een t"e %rties, t"eir%ssi4ns %n! "eirs, e#et in #%se 9"ere t"e ri4"ts %n! o/$i4%tions%risin4 'ro t"e #ontr%#t %re not tr%nsissi/$e /+ t"eir n%t(re, or/+ sti($%tion or /+ rovision o' $%9. .

In sever%$ #%ses, t"is Co(rt "%s r($e! t"%t (n!er t"e #ivi$ $%9rin#i$e o' re$%tivit+ o' #ontr%#ts (n!er Arti#$e &&&, #ontr%#ts #%non$+ /in! t"e %rties 9"o entere! into it, %n! it #%nnot '%vor orre(!i#e % t"ir! erson, even i' "e is %9%re o' s(#" #ontr%#t %n!"%s %#te! 9it" 1no9$e!4e t"ereo'.BBMetro/%n1 %n! G$o/%$ 6%n1 %renot %rties to t"e #ontr%#t to /(+ 'orei4n #(rren#+ /et9een C"io1%n! N(4(i!. T"ere'ore, t"e+ %re not /o(n! /+ s(#" #ontr%#t %n!#%nnot /e re(!i#e! /+ t"e '%i$(re o' N(4(i! to #o$+ 9it" t"eters t"ereo'.

Neit"er #o($! C"io1 /e v%$i!$+ 4r%nte! % 9rit o' in(n#tion %4%instMetro/%n1 %n! G$o/%$ 6%n1 to enoin s%i! /%n1s 'ro "onorin4 t"es(/e#t %n%4er8s %n! #%s"ier8s #"e#1s. It is e$eent%r+ t"%t ?2%3nin(n#tion s"o($! never iss(e 9"en %n %#tion 'or !%%4es 9o($!%!e


15/44


#ontr%#t %n! to "%ve t"e ver+ %##o(nt 9"ere "e !eosite! t"es(/e#t #"e#1s 4%rnis"e! (n!er Se#tion 72!3 B%n! Se#tion *,B7R($e57 o' t"e R($es o' Co(rt. Inste%!, C"io1 $e! %n %#tion to enoinMetro/%n1 %n! G$o/%$ 6%n1 'ro #o$+in4 9it" t"eir ri%r+o/$i4%tion (n!er #"e#1s in 9"i#" t"e+ %re $i%/$e %s /ot" !r%9er %n!

!r%9ee.

It is (n!is(te! t"%t C"io1 erson%$$+ !eosite! t"e s(/e#t%n%4er8s %n! #%s"ier8s #"e#1s to N(4(i!8s %##o(nt.#$!phi#I' t"eintention o' C"io1 9%s 'or N(4(i! to /e %$$o9e! to 9it"!r%9 t"ero#ee!s o' t"e #"e#1s %'ter #$e%rin4, "e #o($! "%ve e%si$+!eosite! erson%$ #"e#1s, inste%! o' 4oin4 t"ro(4" t"e tro(/$e o'(r#"%sin4 %n%4er8s %n! #%s"ier8s #"e#1s. C"io1 t"ere'ore 1ne9,%n! %#t(%$$+ inten!e!, t"%t N(4(i! 9i$$ /e %$$o9e! to ie!i%te$+9it"!r%9 t"e ro#ee!s o' t"e s(/e#t #"e#1s. T"e !eosit o' t"e#"e#1s 9"i#" 9ere r%#ti#%$$+ %s 4oo! %s #%s" 9%s 9i$$in4$+ %n!vo$(nt%ri$+ %!e /+ C"io1, 9it"o(t %n+ %ss(r%n#e t"%t N(4(i! 9i$$

#o$+ 9it" "is en! o' t"e /%r4%in on t"e s%e !%+. T"ee$%n%tion 'or s(#" %%rent$+ re#1$ess %#tion 9%s %!itte! /+C"io1 in t"e Aen!e! Co$%int itse$'

T"%t $%inti C"io1 !(e to t"e n(/ero' +e%rs 2ve to seven+e%rs3 o' /(siness tr%ns%#tions 9it" !e'en!%nt N(4(i! "%sreose! (tost tr(st %n! #on!en#e on t"e $%ttert"%t t"eirtr%ns%#tions %s o' =(ne &>>5 re%#"es i$$ions o' esos. .B*2E"%ses s($ie!.3

As /et9een t9o inno#ent ersons, one o' 9"o (st s(er t"e#onseEvi!ent$+, it 9%s t"e(tost tr(st %n! #on!en#e reose! /+ C"io1 to N(4(i! t"%t#%(se! t"is entire !e/%#$e, !r%44in4 t"ree /%n1s into t"e#ontrovers+, %n! "%vin4 t"eir reso(r#es t"re%tene! /e#%(se o' %n%$$e4e! !e'%($t in % #ontr%#t t"e+ 9ere not riv+ to.

Whether or not the peculiar circumstances of this case ustify thede"iation from the general principles on causes and e%ects ofmanagers and cashiers checks

T"e Co(rt o' Ae%$s, 9"i$e %!ittin4 t"%t t"e 4ener%$ rin#i$es ont"e #%(ses %n! ee#ts o' %n%4er8s %n! #%s"ier8s #"e#1s !o not%$$o9 t"e #o(nter%n!in4 o' s(#" #"e#1s on t"e /%sis o' %n %$$e4e!'%i$(re o' #onsi!er%tion o' t"e %+ee to t"e (r#"%ser, nevert"e$ess"e$! t"%t t"e e#($i%r #ir#(st%n#es o' t"is #%se (sti'+ % !evi%tion

'ro s%i! 4ener%$ rin#i$es, %$+in4 t"e %'oreentione! #%se o'Mesin%. T"e Co(rt o' Ae%$s "e$!

At t"e #ore o' t"e %e%$ interose! /+ t"e intervenor 6PI, %s 9e$$%s t"e !eositor+ /%n1s, G$o/%$ 6%n1 %n! Metro/%n1, is t"e iss(e o'9"et"er or not it is $e4%$$+ ossi/$e 'or % (r#"%ser o' % M%n%4er8sC"e#1 or C%s"ier8s C"e#1 to sto %+ent t"ereon t"ro(4" % #o(rtor!er on t"e 4ro(n! o' t"e %+ee8s %$$e4e! /re%#" o' #ontr%#t(%$o/$i4%tion %o(ntin4 to %n %/sen#e o' #onsi!er%tion t"ere'or.

In vie9 o' t"e e#($i%r #ir#(st%n#es o' t"is #%se, %n! in t"einterest o' s(/st%nti%$ (sti#e, 0e %re #onstr%ine! to r($e in t"e

%Lr%tive.

In t"e #%se o' Mesin% v. Intere!i%te Ae$$%te Co(rt, #ite! /+ 6PIin its %e%$ /rie', t"e S(ree Co(rt "%! t"e o##%sion to r($e t"%t4ener%$ rin#i$es on #%(ses %n! ee#ts o' % #%s"ier8s #"e#1, i.e.,t"%t it #%nnot /e #o(nter%n!e! in t"e "%n!s o' % "o$!er in !(e#o(rse %n! t"%t it is % /i$$ o' e#"%n4e !r%9n /+ t"e /%n1 %4%institse$', #%nnot /e %$ie! 9it"o(t #onsi!erin4 t"%t t"e /%n1 9%s%9%re o' '%#ts 2in t"is #%se, t"e #%s"ier8s #"e#1 9%s sto$en3 t"%t

9o($! not entit$e t"e %+ee t"ereo' to #o$$e#t on t"e #"e#1 %n!,#onse>5 %o(nte! to % '%i$(re o' #onsi!er%tiont"%t 9o($! not entit$e N(4(i! to #o$$e#t on t"e s(/e#t #"e#1s.

&5


16/44


:et it /e e"%sie! t"%t in reso$vin4 t"e %tter /e'ore ;s, 0e !onot !etr%#t 'ro 9e$$-sett$e! #on#ets %n! rin#i$es in #oer#i%$$%9 re4%r!in4 t"e n%t(re, #%(ses %n! ee#ts o' % %n%4er8s #"e#1%n! #%s"ier8s #"e#1. S(#" #"e#1s %re ri%r+ o/$i4%tions o' t"eiss(in4 /%n1 %n! %##ete! in %!v%n#e /+ t"e ere iss(%n#e

t"ereo'. T"e+ %re % /%n18s or!er to %+ !r%9n (on itse$',#oittin4 in ee#t its tot%$ reso(r#es, inte4rit+, %n! "onor. 6+t"eir e#($i%r #"%r%#ter %n! 4ener%$ (se in t"e #oer#i%$ 9or$!,t"e+ %re re4%r!e! s(/st%nti%$$+ %s 4oo! %s t"e one+ t"e+reresent. Ho9ever, in vie9 o' t"e e#($i%r #ir#(st%n#es o' t"e#%se %t /en#", 0e %re #onstr%ine! to set %si!e t"e 'ore4oin4#on#ets %n! rin#i$es in '%vor o' t"e eer#ise o' t"e ri4"t tores#in! % #ontr%#t (on t"e '%i$(re o' #onsi!er%tiont"ereo'.5)2E"%ses o(rs, #it%tions oitte!.3

In !evi%tin4 'ro 4ener%$ /%n1in4 rin#i$es %n! !isosin4 t"e #%seon t"e /%sis o' e


17/44


/e "e$! $i%/$e on %##o(nt o' t"e 1no9$e!4e o' 9"%tever e$se C"io1to$! t"e 9"en "e %s1e! 'or t"e ro#e!(re to se#(re % StoP%+ent Or!er. On t"e ot"er "%n!, t"ere 9%s no ention t"%tMetro/%n1 9%s ever notie! o' t"e %$$e4e! '%i$(re o' #onsi!er%tion.On$+ Asi%n 6%n1 9%s notie! o' s(#" '%#t. F(rt"erore, t"e ere

%$$e4%tion o' /re%#" on t"e %rt o' t"e %+ee o' "is erson%$#ontr%#t 9it" t"e (r#"%ser s"o($! not /e #onsi!ere! % s(L#ient#%(se to ie!i%te$+ n($$i'+ s(#" #"e#1s, t"ere/+ ero!in4 t"eirinte4rit+ %n! "onor %s /ein4 %s 4oo! %s #%s".

In vie9 o' %$$ t"e 'ore4oin4, 9e reso$ve t"%t C"io18s #o$%ints"o($! /e !enie! inso'%r %s it r%+e! 'or t"e 9it"!r%9%$ o' t"ero#ee!s o' t"e s(/e#t %n%4er8s %n! #%s"ier8s #"e#1s.A##or!in4$+, t"e 9rit o' re$iin%r+ ro"i/itor+ in(n#tion enoinin4Metro/%n1 %n! G$o/%$ 6%n1 'ro "onorin4 t"e s(/e#t %n%4er8s%n! #%s"ier8s #"e#1s s"o($! /e $i'te!.

Sin#e 9e "%ve r($e! t"%t C"io1 #%nnot #$%i t"e %o(nts o' t"e#"e#1s 'ro Metro/%n1 %n! G$o/%$ 6%n1, t"e iss(e #on#ernin4 t"esettin4 o o' G$o/%$ 6%n18s (!4ent !e/t to C"io1 9it" t"eo(tst%n!in4 o/$i4%tions o' C"io1 is "ere/+ oote!. 0e '(rt"erorenote t"%t G$o/%$ 6%n1 "%! not resente!5s(#" iss(e %s %#o(nter#$%i in t"e #%se %t /%r, reventin4 (s 'ro r($in4 on t"es%e.

B&'s right to the proceeds of the managers checks from GlobalBank

0"i$e o(r r($in4 in Mesin%is in%$i#%/$e to t"e #%se %t /%r, % (#"ore re$ev%nt #%se %s re4%r!s t"e ee#t o' % Sto P%+ent Or!er(on % %n%4er8s #"e#1 9o($! /e Se#(rit+ 6%n1 %n! Tr(stCo%n+ v. Ri%$ Coer#i%$ 6%n1in4 Coror%tion,5B9"i#" 9%s!e#i!e! /+ t"is Co(rt in ))>. In s%i! #%se, S6TC iss(e! %%n%4er8s #"e#1 'orP* i$$ion, %+%/$e to ?CASH,? %s ro#ee!s o't"e $o%n 4r%nte! to G(i!on Constr(#tion %n! Deve$oentCoror%tion 2GCDC3. On t"e s%e !%+, t"e %n%4er8s #"e#1 9%s!eosite! /+ Continent%$ M%n('%#t(rin4 Coror%tion 2CMC3 in its#(rrent %##o(nt 9it" Ri%$ Coer#i%$ 6%n1in4 Coror%tion 2RC6C3.RC6C ie!i%te$+ "onore! t"e %n%4er8s #"e#1 %n! %$$o9e! CMCto 9it"!r%9 t"e s%e. GCDC iss(e! % Sto P%+ent Or!er to S6TC

on t"e net !%+, #$%iin4 t"%t t"e #"e#1 9%s re$e%se! to % t"ir!

%rt+ /+ ist%1e. S6TC !is"onore! %n! ret(rne! t"e %n%4er8s#"e#1 to RC6C. T"e #"e#1 9%s ret(rne! /%#1 %n! 'ort" /et9een t"et9o /%n1s, res($tin4 in %(to%ti# !e/its %n! #re!its in e%#" /%n18s#$e%rin4 /%$%n#e. RC6C $e! % #o$%int 'or !%%4es %4%inst S6TC.0"en t"e #%se re%#"e! t"is Co(rt, 9e "e$!

At t"e o(tset, it (st /e note! t"%t t"e 7>,ro"i/itin4 !r%9in4s %4%inst (n#o$$e#te! !eosits. For 9e (stoint o(t t"%t t"e Centr%$ 6%n1 %t t"%t tieiss(e! % Meor%n!(!%te! =($+ >, &>*), 9"i#" interrete! s%i! Monet%r+ 6o%r!Reso$(tion No. ). In its ertinent ortion, s%i!Meor%n!(re%!s

MEMORAND;M TO A:: 6ANKS

=($+ >, &>*)

For t"e 4(i!%n#e o' %$$ #on#erne!, Monet%r+ 6o%r! Reso$(tion No.) !%te! De#e/er &, &>7> ro"i/itin4, %s % %tter o' o$i#+,!r%9in4 %4%inst (n#o$$e#te! !eosit ee#tive =($+ &, &>*),(n#o$$e#te! !eosits reresentin4

&7
http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt53http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt54http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt53http://www.lawphil.net/judjuris/juri2014/nov2014/gr_172652_2014.html#fnt54


18/44


%n%4er8s#%s"ier8stre%s(rer8s#"e#1s, tre%s(r+ 9%rr%nts, ost%$one+ or!ers %n! !($+ '(n!e! ?on (s? #"e#1s 9"i#" %+ /eeritte! %t t"e !is#retion o' e%#" /%n1, #overs !r%9in4s %4%inst!e%n! !eosits %s 9e$$ %s 9it"!r%9%$s 'ro s%vin4s !eosits.

T"(s, it is #$e%r 'ro t"e =($+ >, &>*) Meor%n!( t"%t /%n1s 9ere4iven t"e !is#retion to %$$o9 ie!i%te !r%9in4s on (n#o$$e#te!!eosits o' %n%4er8s #"e#1s, %on4 ot"ers. Conse

o' t"e R($es o' Co(rt, %!issions in $e%!in4s %re (!i#i%$%!issions %n! !o not re


19/44


Se#tion B>. Tr%ns'er 9it"o(t in!orseent ee#t o'. 0"ere t"e"o$!er o' %n instr(ent %+%/$e to "is or!er tr%ns'ers it 'or v%$(e9it"o(t in!orsin4 it, t"e tr%ns'er vests in t"e tr%ns'eree s(#"tit$e %st"e tr%ns'eror "%! t"erein, %n! t"e tr%ns'eree %#5 %n! MC No. )5>>. Sin#e G$o/%$ 6%n1 9%s ere$+'o$$o9in4 t"e TRO %n! re$iin%r+ in(n#tion iss(e! /+ t"e RTC, it#%nnot /e "e$! $i%/$e 'or $e4%$ interest !(rin4 t"e tie s%i! %o(nts%re in its ossession. Inste%!, 9e %re %!otin4 t"e 'or($%tion o't"e Co(rt o' Ae%$s t"%t t"e %o(nts /e tre%te! %s s%vin4s

!eosits in G$o/%$ 6%n1. T"e interest r%te, "o9ever, s"o($! not /ee! %t BQ %s !eterine! /+ t"e Co(rt o' Ae%$s, sin#e s%i! r%tes"%ve (#t(%te! sin#e =($+ 7, &>>5, t"e !%te G$o/%$ 6%n1 re'(se! to"onor t"e s(/e#t %n%4er8s #"e#1s. T"(s, G$o/%$ 6%n1 s"o($! %+6PI interest /%se! on t"e r%tes it %#t(%$$+ %i! its !eositors 'ro=($+ 7, &>>5 (nti$ t"e n%$it+ o' t"is De#ision, in %##or!%n#e 9it" t"es%e #oo(n!in4 r($es it %$ies to its !eositors. T"e $e4%$ r%teo'Q er %nn( s"%$$ %$+ %'ter t"e n%$it+ o' t"is De#ision.

0e "%ve to stress t"%t reson!ent C"io1 is not $e't 9it"o(tre#o(rse. Reson!ent C"io18s #%(se o' %#tion to re#over t"e v%$(eo' t"e #"e#1s is %4%inst N(4(i!. ;n'ort(n%te$+, N(4(i! %$$o9e! "is

%e%$ 9it" t"e Co(rt o' Ae%$s to $%se, 9it"o(t t%1in4 stesto"%ve it reinst%te!. As st%te! %/ove, %rties 9"o !i! not %e%$9i$$ not /e %e#te! /+ t"e !e#ision o' t"e %e$$%te #o(rt ren!ere!to %e%$in4 %rties.Moreover, sin#e N(4(i! 9%s not i$e%!e!%s % %rt+ to t"e resent #onso$i!%te! #%ses, "e #%nnot /e /o(n!

/+ o(r (!4ent "erein. Reson!ent C"io1 s"o($! t"ere'ore (rs(e"is ree!+ %4%inst N(4(i! in % se%r%te %#tion to re#over t"e%o(nts o' t"e #"e#1s.

Desite t"e revers%$ o' t"e Co(rt o' Ae%$s De#ision, t"e $i%/i$it+ o'N(4(i! t"erein to reson!ent C"io1 'or %ttorne+8s 'ees e5 %n! MC No. )5>>, 9it"interest /%se! on t"e r%tes it %#t(%$$+ %i! its !eositors 'ro =($+7, &>>5 (nti$ t"e n%$it+ o' t"is De#ision, in %##or!%n#e 9it" t"es%e #oo(n!in4 r($es it %$ies to its !eositors.

T"e etition in G.R. No. &75>B is "ere/+ ren!ere! MOOT.

&>


20/44


T"e $i%/i$ities o' so(ses Gon%$o 6. N(4(i! %n! M%rine$$% O. N(4(i!(n!er t"e De#ision %n! Reso$(tion o' t"e Co(rt o' Ae%$s in CAG.R.CV No. 775)* re%in VA:ID %n! S;6SISTING, #o(te! 'ro t"e%o(nts %!(!4e! /+ t"e Co(rt o' Ae%$s, 9it"o(t re(!i#e to%n+ '(rt"er %#tion t"%t %+ /e $e! /+ 0i$'re! N. C"io1. SO

ORDERED.

G.R. No. 1642 A'/ 11, 2010

3I!ENTE GO,Petitioner, vs. METROPOLITAN BANK AND TRUT!O.,Reson!ent.

NA!%URA, J.:)


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6e'ore t"e Co(rt is % etition 'or revie9 on #ertior%ri (n!er R($e B5o' t"e R($es o' Co(rt, %ss%i$in4 t"e De#ision&!%te! M%+ 7, ))5%n! t"e Reso$(tion!%te! A(4(st &, ))5 o' t"e Co(rt o' Ae%$s2CA3 in CA-G.R. CV No. B>.

T"e F%#ts

T"e '%#ts o' t"e #%se %re %s 'o$$o9s

Petitioner $e! t9o se%r%te #%ses /e'ore t"e Re4ion%$ Tri%$ Co(rt2RTC3 o' Ce/(. Civi$ C%se No. CE6->7& 9%s $e! /+ etitioner%4%inst M%. Teres% C"(% 2C"(%3 %n! G$+n!%" T%/%%4 2T%/%%43 'or% s( o' one+ 9it" re$iin%r+ %tt%#"ent. Civi$ C%se No. CE6->* 9%s $e! /+ etitioner 'or % s( o' one+ 9it" !%%4es%4%inst "erein reson!ent Metroo$it%n 6%n1 %n! Tr(st Co%n+2Metro/%n13 %n! C"(%.

In /ot" #%ses, etitioner %$$e4e! t"%t "e 9%s !oin4 /(siness (n!ert"e n%e ?Hoe P"%r%#+? 9"i#" se$$s e!i#ine %n! ot"er"%r%#e(ti#%$ ro!(#ts in t"e Cit+ o' Ce/(. Petitioner "%! in "ise$o+ C"(% %s "is "%r%#ist %n! tr(stee or #%ret%1er o' t"e/(siness T%/%%4, on t"e ot"er "%n!, too1 #%re o' t"e re#eits %n!invoi#es %n! %ssiste! C"(% in %1in4 !eosits 'or etitioner8s%##o(nts in t"e /(siness oer%tions o' Hoe P"%r%#+.B

In CE6->7&, etitioner #$%ie! t"%t t"ere 9ere (n%(t"orie!!eosits %n! en#%s"ents %!e /+ C"(% %n! T%/%%4 in t"e tot%$%o(nt o' One H(n!re! Nine T"o(s%n! Fo(r H(n!re! T"irt+-t"ree

Pesos %n! T"irt+ Cent%vos 2P&)>,B.)3. He , &>>) in t"e%o(nt o' P,5.)) 9"i#" 9%s iss(e! /+ $%inti8setitioner8s #(stoer :o+ :i/ron in %+ent o' t"e sto#1s(r#"%se! 9%s !eosite! (n!er Metro/%n1 S%vin4s A##o(ntNo. B)->)- /e$on4in4 to t"e !e'en!%nt M%. Teres% C"(%

23 RC6C C"e#1s Nos. )>5* %n! >B5&5, 9"i#" 9ere in/$%n1 /(t re-si4ne! /+ "i 2$%inti etitioner Vi#enteGo3 'or #onvenien#e %n! inten!e! 'or %+ent to $%inti8s

etitioner8s s($iers, 9ere $$e! ( %n! !%te! Sete/er, &>>) %n! Sete/er 7, &>>) in t"e %o(nto' P),))).)) %n! P5),))).)) rese#tive$+, %n! 9ere!eosite! 9it" !e'en!%nt C"(%8s %'orest%te! %##o(nt 9it"Metro/%n1

23 P6C C"e#1 No. ))5*7B, !r%9n /+ E$i%/et" Enri) P 5,&B.**

FE6TC >>> 5-)*->) B,>&7.75

FE6TC 5&5) 7-B->) &,.5

P6C 7>**7 -7->) ,))).))

P6C &*7 &-B->) ,)).))

P6C &&7 &--*> ,)).))

P6C 7>**& -->) 7,5).))

P6C ))>))5 7-&-*> ,5*B.))

P6C 7>77& 5-&B->) ,)).))

P6C 7>7 B-5->) ,))).))

&
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P6C &*))B -->) ,*)).))

P6C &7> -)7->) &,7)).))

FE6TC 77> *-)->) *),)*5.

FE6TC 77& 7-&->) B5,)B.

FE6TC 5&5 -)->) B,))).))

FE6TC 77>* *-&5->) B),)7*.7

P6C 7> *-)->) ,&)).))

P6C 7BB5 >-->) &,&5.))

P6C ))>)5 *-)7-*> ,5)).))

P6C 7B) >-&->) &,&)5.B)

6PI &>7)7B 7-&7->) 5,B).))

6PI &>7)5& 7-)->) &,5).))

6PI )B5* >-&>->) 5,B).)

6PI )B5 7-&->) ,7&5.)

FE6TC 5&&7& -7->) *,&75.5B

FE6TC 5&&5 -*->) &,>.&)

FE6TC 5&5& -)->) B7,)*7.5

FE6TC 5&& -&->) &7),)).*5

FE6TC 5&&7) 5-->) &,BB).))

FE6TC 5&&& 5-&->) &&,5>.>

FE6TC >B)) -&5->) B7,B.)

FE6TC 5&& -->) *,>7.*5

P&,B>,5>5.)7

Petitioner #$%ie! t"%t t"e s%i! #"e#1s 9ere #rosse! #"e#1s

%+%/$e to Hoe P"%r%#+ on$+ %n! t"%t 9it"o(t t"e %rti#i%tion%n! #onniv%n#e o' reson!ent /%n1, t"e #"e#1s #o($! not "%ve/een %##ete! 'or !eosit to %n+ ot"er %##o(nt, e#et etitioner8s%##o(nt.*

T"(s, in CE6->*, etitioner r%+e! t"%t C"(% %n! reson!ent/%n1 /e or!ere!, oint$+ %n! sever%$$+, to %+ t"e rin#i%$ %o(nto' P&,B>,5>5.), $(s interest %t &Q 'ro t"e !%tes o' t"e#"e#1s, (nti$ t"e o/$i4%tion s"%$$ "%ve /een '($$+ %i! or%$!%%4es o' Five H(n!re! T"o(s%n! Pesos 2P5)),))).))3ee$%r+ !%%4es o'P5)),))).)) %n! %ttorne+8s 'ees %n! #ostsin t"e %o(nt o' P5)),))).)).>

On Fe/r(%r+ , &>>5, t"e RTC ren!ere! % =oint De#ision,&)t"e!isositive ortion o' 9"i#" re%!s

0HEREFORE, reises #onsi!ere!, t"e Co(rt "ere/+ ren!ers(!4ent !isissin4 $%inti Vi#ente Go8s #o$%int %4%inst t"e!e'en!%nt M%. Teres% C"(% %n! G$+n!%" T%/%%4 in Civi$ C%se No.CE6->7&, %s 9e$$ %s $%inti8s #o$%int %4%inst t"e s%e!e'en!%nt M%. Teres% C"(% in Civi$ C%se No. CE6->*.

P$%inti Vi#ente Go is oreover senten#e! to %+ P5),))).)) in

%ttorne+8s 'ees %n! $iti4%tion eenses to t"e !e'en!%nts M%.Teres% C"(% %n! G$+n!%" T%/%%4 in Civi$ C%se No. CE6->7&.

De'en!%nt Metro/%n1 in Civi$ C%se No. CE6->* is "ere/+#on!ene! to %+ (nto $%inti Vi#ente GoHoe P"%r%#+ t"e%o(nt o' P5),))).)) %s or%$ !%%4es, %n! %ttorne+8s 'ees %n!$iti4%tion eenses in t"e %44re4%te s( o' P5,))).)).

T"e !e'en!%nt Metro/%n18s #ross#$%i %4%inst its #o-!e'en!%nt M%.Teres% C"(% in Civi$ C%se No. CE6->* is !isisse! 'or $%#1 o'erit.
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No se#i%$ rono(n#eent %s to #osts in /ot" inst%n#es.

SO ORDERED.&&

In stri1in4 !o9n t"e #o$%int o' t"e etitioner %4%inst C"(% %n!

T%/%%4 in CE6->7&, t"e RTC %!e t"e 'o$$o9in4 n!in4s

2&3 FE6TC C"e#1 No. 5&&&&, !%te! Ari$ >, &>>), in t"e%o(nt o' P,5.)) %+%/$e to #%s", 9%s !r%9n /+ :o+:i/ron in %+ent o' "er (r#"%ses o' e!i#ines %n! ot"er!r(4s 9"i#" M%. Teres% C"(% 9%s se$$in4 si!e /+ si!e 9it"t"e e!i#ines %n! !r(4s o' t"e Hoe P"%r%#+, 'or 9"i#"s"e 2M%ritess3 9%s 4r%nte! erission /+ its o9ner, Mr.Vi#ente C"(%. T"ese e!i#ines %n! !r(4s 'ro T"%i$%n!9ere M%ritess8 si!e$ine, %n! 9ere se4re4%te! 'ro t"esto#1s o' Hoe P"%r%#+ .

23 RC6C C"e#1 Nos. >B5&> %n! )>5* 9ere #"e#1s/e$on4in4 to $%inti Vi#ente Go %+%/$e to #%s" t"ese#"e#1s 9ere re$%#eents o' t"e s(s e%r$ier %!v%n#e! /+M%. Teres% C"(%, /(t 9"i#" 9ere !eosite! in t"e %##o(nt o'Vi#ente Go 9it" RC6C, %s s"o9n /+ t"e !eosit s$is ,%n! #onre! /+ t"e st%teent o' %##o(nt o' Vi#ente Go9it" RC6C.

23 C"e#1 No. PCI6 ))57B !r%9n /+ E$i%/et" Enri


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9"ere t9o %r%$$e$ $ines %re !r%9n %#ross its '%#e or %#ross t"e#orner t"ereo'. It %+ /e #rosse! 4ener%$$+ or se#i%$$+. &*

A #"e#1 is #rosse! se#i%$$+ 9"en t"e n%e o' % %rti#($%r /%n1eror % #o%n+ is 9ritten /et9een t"e %r%$$e$ $ines !r%9n. It is

#rosse! 4ener%$$+ 9"en on$+ t"e 9or!s ?%n! #o%n+? %re 9rittenor not"in4 is 9ritten %t %$$ /et9een t"e %r%$$e$ $ines, %s in t"is#%se. It %+ /e iss(e! so t"%t resentent #%n /e %!e on$+ /+ %/%n1.&>

In or!er to reserve t"e #re!it 9ort"iness o' #"e#1s, (risr(!en#e"%s rono(n#e! t"%t #rossin4 o' % #"e#1 "%s t"e 'o$$o9in4 ee#ts2%3 t"e #"e#1 %+ not /e en#%s"e! /(t on$+ !eosite! in t"e /%n12/3 t"e #"e#1 %+ /e

ne4oti%te! on$+ on#e Z to one 9"o "%s %n %##o(nt 9it" % /%n1%n! 2#3 t"e %#t o' #rossin4 t"e #"e#1 serves %s 9%rnin4 to t"e

"o$!er t"%t t"e #"e#1 "%s /een iss(e! 'or % !enite (rose so t"%t"e (st in


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C"(% to$! "i t"%t t"ose #"e#1s /e$on4e! to "er %s %+ent 'ort"e %!v%n#es s"e eten!e! to Mr. GoHoe P"%r%#+.

D%vis stresse! t"%t Metro/%n1 4r%nte! t"e rivi$e4e to M%. Teres%C"(% t"%t 'or ever+ #"e#1 s"e !eosite! 9it" Metro/%n1, t"e s%e

9o($! /e #re!ite! o(tri4"t to "er %##o(nt, e%nin4 t"%t s"e #o($!ie!i%te$+ %1e (se o' t"e %o(nt #re!ite! t"is %rr%n4eent9ent on 'or %/o(t t"ree +e%rs, 9it"o(t %n+ #o$%int 'ro Mr.GoHoe P"%r%#+, %n! M%. Teres% C"(% %!e 9%rr%nt+ t"%t s"e9o($! rei/(rse Metro/%n1 i' Mr. Go #o$%ine!. He !i! not"o9ever #%$$ or in'or Mr. Go %/o(t t"is %rr%n4eent, /e#%(set"eir /%n1 /ein4 % C"inese /%n1, tr%ns%#tions %re /%se! on tr(st%n! #on!en#e, %n! 'or "i to in'or Mr. Vi#ente Go %/o(t it, 9%st%nt%o(nt to


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G.R. No. 157 O-/ober 15, 2007

BANK O$ T%E P%ILIPPINE ILAND,Petitioner, vs. GREGORIO!. ROA,Reson!ent.

ANDO3AL&GUTIERRE, J.:

For o(r reso$(tion is t"e inst%nt Petition 'or Revie9 on Certior%ri%ss%i$in4 t"e De#ision&o' t"e Co(rt o' Ae%$s 2Fo(rt" Division3!%te! Fe/r(%r+ &, )) in CA-G.R. CV No. 7>*).

T"e '%#ts o' t"e #%se, %s 'o(n! /+ t"e tri%$ #o(rt %n! %Lre! /+t"e Co(rt o' Ae%$s, %re

Gre4orio C. Ro%s, reson!ent, is % tr%!er. Soetie in M%r#"&>>, "e !e$ivere! sto#1s o' ve4et%/$e oi$ to so(ses Ro!ri4o %n!M%riss% C%9i$i. As %+ent t"ere'or, so(ses C%9i$i iss(e! %erson%$ #"e#1 in t"e %o(nt o'PB*,*)5.5). Ho9ever, 9"enreson!ent trie! to en#%s" t"e #"e#1, it 9%s !is"onore! /+ t"e

!r%9ee /%n1. So(ses C%9i$i t"en %ss(re! "i t"%t t"e+ 9o($!re$%#e t"e /o(n#e! #"e#1 9it" % #%s"ier8s #"e#1 'ro t"e 6%n1 o't"e P"i$iine Is$%n!s 26PI3, etitioner.

On M%r#" &, &>>, reson!ent %n! Ro!ri4o C%9i$i 9ent toetitioner8s /r%n#" %t S"%9 6o($ev%r!, M%n!%$(+on4 Cit+ 9"ereE$% C%istr%no, t"e /r%n#" %n%4er, erson%$$+ %tten!e! tot"e. ;on E$%8s instr(#tions, :it% S%4(n, t"e /%n1 te$$er,re%re! 6PI C%s"ier8s C"e#1 No. &BB* in t"e %o(nto' PB*,*)5.5), !r%9n %4%inst t"e %##o(nt o' M%riss% C%9i$i,%+%/$e to reson!ent. Ro!ri4o t"en "%n!e! t"e #"e#1 toreson!ent in t"e resen#e o' E$%.

T"e 'o$$o9in4 !%+, Ari$ &, &>>, reson!ent ret(rne! to etitioner8s/r%n#" %t S"%9 6o($ev%r! to en#%s" t"e #%s"ier8s #"e#1 /(t it 9%s!is"onore!. E$% in'ore! "i t"%t M%riss%8s %##o(nt 9%s #$ose!on t"%t !%te.

Desite reson!ent8s insisten#e, t"e /%n1 oL#ers re'(se! toen#%s" t"e #"e#1 %n! trie! to retrieve it 'ro reson!ent. He t"en#%$$e! "is $%9+er 9"o %!vise! "i to !eosit t"e #"e#1 in "is2reson!ent8s3 %##o(nt %t Cit+tr(st, Orti4%s Aven(e. Ho9ever, t"e#"e#1 9%s !is"onore! on t"e 4ro(n! ?A##o(nt C$ose!.?

On Sete/er , &>>, reson!ent $e! 9it" t"e Re4ion%$ Tri%$Co(rt, 6r%n#" , P%si4 Cit+ % #o$%int 'or s( o' one+ %4%instetitioner, !o#1ete! %s Civi$ C%se No. . Reson!ent r%+e!t"%t etitioner /e or!ere! to %+ t"e %o(nt o' t"e #"e#1,!%%4es %n! #ost o' t"e s(it.

In its %ns9er, etitioner se#i#%$$+ !enie! t"e %$$e4%tions in t"e#o$%int, #$%iin4 t"%t it iss(e! t"e #"e#1 /+ ist%1e in 4oo!'%it" t"%t its !is"onor 9%s !(e to $%#1 o' #onsi!er%tion %n! t"%treson!ent8s ree!+ 9%s to s(e Ro!ri4o C%9i$i 9"o (r#"%se! t"e
http://www.lawphil.net/judjuris/juri2007/oct2007/gr_157833_2007.html#fnt1http://www.lawphil.net/judjuris/juri2007/oct2007/gr_157833_2007.html#fnt1


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#"e#1. As % #o(nter#$%i, etitioner r%+e! t"%t reson!ent /eor!ere! to %+ %ttorne+8s 'ees %n! eenses o' $iti4%tion.

Petitioner $e! % t"ir!-%rt+ #o$%int %4%inst so(ses C%9i$i. T"e+9ere $%ter !e#$%re! in !e'%($t 'or t"eir '%i$(re to $e t"eir %ns9er.

A'ter tri%$, t"e RTC ren!ere! % De#ision, t"e !isositive ortion o'9"i#" re%!s

0HEREFORE, in vie9 o' t"e 'ore4oin4 reises, t"is Co(rt "ere/+ren!ers (!4ent in '%vor o' "erein $%inti %n! or!ers t"e!e'en!%nt, 6%n1 o' t"e P"i$iine Is$%n!s, to %+ Ger%r!o C. Ro%s

&3 T"e s( o' PB*,*)5.5), t"e '%#e v%$(e o' t"e #%s"ier8s#"e#1, 9it" $e4%$ interest t"ereon #o(te! 'ro Ari$ &,&>> (nti$ t"e %o(nt is '($$+ %i!

3 T"e s( o' P5),))).)) 'or or%$ !%%4es

3 T"e s( o' P5),))).)) %s ee$%r+ !%%4es to serve%s %n e%$e 'or t"e (/$i# 4oo!

B3 T"e s( o' P5,))).)) 'or %n! %s %ttorne+8s 'ees %n!t"e

53 Costs o' s(it.

As to t"e t"ir!-%rt+ #o$%int, t"ir!-%rt+ !e'en!%nts So(sesRo!ri4o %n! M%riss% C%9i$i %re "ere/+ or!ere! to in!eni'+!e'en!%nt 6%n1 o' t"e P"i$iine Is$%n!s s(#" %o(nt2s3 %!(!4e!%n! %#t(%$$+ %i! /+ it to "erein $%inti Gre4orio C. Ro%s,in#$(!in4 t"e #osts o' s(it.

SO ORDERED.

On %e%$, t"e Co(rt o' Ae%$s, in its De#ision, %Lre! t"e tri%$#o(rt8s (!4ent.

Hen#e, t"is etition.

Petitioner %s#ri/es to t"e Co(rt o' Ae%$s t"e 'o$$o9in4 errors 2&3in n!in4 t"%t reson!ent is % "o$!er in !(e #o(rse %n! 23 in"o$!in4 t"%t it 2etitioner3 is $i%/$e to reson!ent 'or t"e %o(nt o't"e #%s"ier8s #"e#1.

Se#tion 5 o' t"e Ne4oti%/$e Instr(ents :%9 rovi!es

SEC. 5. What constitutes a holder in due course. A "o$!er in !(e#o(rse is % "o$!er 9"o "%s t%1en t"e instr(ent (n!er t"e'o$$o9in4 #on!itions

2%3 T"%t it is #o$ete %n! re4($%r (on its '%#e

2/3 T"%t "e /e#%e t"e "o$!er o' it /e'ore it 9%s over!(e %n!9it"o(t noti#e t"%t it "%! /een revio(s$+ !is"onore!, i' s(#" 9%st"e '%#t

2#3 T"%t "e too1 it in 4oo! '%it" %n! 'or v%$(e

2!3 T"%t %t t"e tie it 9%s ne4oti%te! to "i, "e "%! no noti#e o'%n+ inrit+ in t"e instr(ent or !e'e#t in t"e tit$e o' ersonne4oti%tin4 it.

As % 4ener%$ r($e, (n!er t"e %/ove rovision, ever+ "o$!er isres(e!primafacieto /e % "o$!er in !(e #o(rse. One 9"o #$%isot"er9ise "%s t"e onus probandito rove t"%t one or ore o' t"e#on!itions re


28/44


In Walker *ubber Corp( "( +ederlandsch 'ndische -andelsbank,+()( and .outh .ea .urety 'nsurance Co ., In#.,t"is Co(rt r($e!t"%t v%$(e ?in 4ener%$ ters %+ /e soe ri4"t, interest, rot or/enet to t"e %rt+ 9"o %1es t"e #ontr%#t or soe 'or/e%r%n#e,!etrient, $o%n, resonsi/i$it+, et#. on t"e ot"er si!e.? Here, t"ereis no !is(te t"%t reson!ent re#eive! Ro!ri4o C%9i$i8s #%s"ier8s#"e#1 %s %+ent 'or t"e 'orer8s ve4et%/$e oi$. T"e '%#t t"%t it9%s Ro!ri4o 9"o (r#"%se! t"e #%s"ier8s #"e#1 'ro etitioner 9i$$not %e#t reson!ent8s st%t(s %s % "o$!er 'or v%$(e sin#e t"e #"e#19%s !e$ivere! to "i %s %+ent 'or t"e ve4et%/$e oi$ "e so$! toso(ses C%9i$i. Veri$+, t"e Co(rt o' Ae%$s !i! not err in #on#$(!in4t"%t reson!ent is % "o$!er in !(e #o(rse o' t"e #%s"ier8s #"e#1.

F(rt"erore, it /e%rs e"%sis t"%t t"e !is(te! #"e#1 is %#%s"ier8s #"e#1. In 'nternational Corporate Bank "( .pousesGueco,t"is Co(rt "e$! t"%t % #%s"ier8s #"e#1 is re%$$+ t"e /%n18so9n #"e#1 %n! %+ /e tre%te! %s % roissor+ note 9it" t"e /%n1

%s t"e %1er. T"e #"e#1 /e#oes t"e r(m)r ob8()/(o* o9 /:eb)*+ ;:(-: (''e' (/ )*< -o*'/(//e' ) ;r(//e* rom('e /o) o*


29/44


&. C"in% 6%n1in4Coror%tion

5*>)5 De#. , &>*) P>*,75).))

. Intern%tion%$Coror%te 6%n1

)B)B55B> De#. , &>*) &),&.))

. Metroo$it%n6%n1 @ Tr(st Co.

)5& De#. , &>*) >*,*7.))

T"e tot%$ v%$(e o' t"e t"ree 23 ost!%te! #"e#1s %o(nte! to P>>,B5).)).

S(/se,B5).)) 9it" interest %t t"e r%te o' &Q er%nn( 'ro Fe/r(%r+ B,&>*& (nti$ '($$+ %i!

3 P >,>B5.)) %s %n! 'or %ttorne+Xs 'ees %n!3 t"e #osts o' s(it.

On t"e t"ir! %rt+ #o$%int, t"ir! %rt+ !e'en!%nt Ne9Si1%t(n% 0oo! In!(stries, In#. is or!ere! to %+ t"ir! %rt+$%intis Anit% Pen% C"(% %n! H%rris C"(% %$$ %o(nts s%i!!e'en!%ntsX t"ir!- %rt+ $%intis %+ %+ to t"e $%inti on

%##o(nt o' t"is #%se.2

On %e%$ $e! /+ riv%te reson!ents in AC-G.R. CV No. )B5,t"e Intere!i%te Ae$$%te Co(rt 2no9 Co(rt o' Ae%$s3 reverse!t"e $o9er #o(rtXs (!4ent in t"e no9 %ss%i$e! !e#ision, t"e!isositive ortion o' 9"i#" re%!s

0HEREFORE, n!in4 t"is %e%$ eritorio(s, 0e Reverse%n! Set Asi!e t"e %e%$e! (!4ent, !%te! Ari$ ), &>*B%n! % ne9 (!4ent is "ere/+ ren!ere! !isissin4 t"e#o$%int, 9it" #osts %4%inst $%inti-%e$$ee. 4

>


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Hen#e, t"is etition.

T"e ivot%$ iss(e in t"is #%se is 9"et"er or not etitioner is % "o$!erin !(e #o(rse %s to entit$e it to ro#ee! %4%inst riv%te reson!ents'or t"e %o(nt st%te! in t"e !is"onore! #"e#1s.

Se#tion 52#3 o' t"e Ne4oti%/$e Instr(ents :%9 !enes % "o$!er in!(e #o(rse %s one 9"o t%1es t"e instr(ent ?in 4oo! '%it" %n! 'orv%$(e?. On t"e ot"er "%n!, Se#tion 52!3 rovi!es t"%t in or!er t"%tone %+ /e % "o$!er in !(e #o(rse, it is ne#ess%r+ t"%t ?%t t"e tiet"e instr(ent 9%s ne4oti%te! to "i "e "%! no noti#e o' %n+ !e'e#t in t"e tit$e o' t"e erson ne4oti%tin4 it.? Ho9ever, (n!erSe#tion 5> ever+ "o$!er is !eee!prima facieto /e % "o$!er in !(e#o(rse.

A!itte!$+, t"e Ne4oti%/$e Instr(ents :%9 re4($%tin4 t"e iss(%n#eo' ne4oti%/$e #"e#1s %s 9e$$ %s t"e $i4"ts %n! $i%/i$ities %risin4

t"ere'ro, !oes not ention ?#rosse! #"e#1s?. 6(t t"is Co(rt "%st%1en #o4ni%n#e o' t"e r%#ti#e t"%t % #"e#1 9it" t9o %r%$$e$ $inesin t"e (er $e't "%n! #orner e%ns t"%t it #o($! on$+ /e !eosite!%n! %+ not /e #onverte! into #%s". Conse


31/44


T"e %+ent %!e to % erson ot"er t"%n t"e /%n1er orinstit(tion s"%$$ not eet t"e erson on 9"o it is !r%9n,i' t"e %+ent 9%s not #orre#t$+ %!e.

;n!er (s(%$ r%#ti#e, #rossin4 % #"e#1 is !one /+ $%#in4 t9o

%r%$$e$ $ines !i%4on%$$+ on t"e $e't to ortion o' t"e #"e#1. T"e#rossin4 %+ /e se#i%$ 9"erein /et9een t"e t9o %r%$$e$ $ines is9ritten t"e n%e o' % /%n1 or % /(siness instit(tion, in 9"i#" #%set"e !r%9ee s"o($! %+ on$+ 9it" t"e intervention o' t"%t /%n1 or#o%n+, or #rossin4 %+ /e 4ener%$ 9"erein /et9een t9o %r%$$e$!i%4on%$ $ines %re 9ritten t"e 9or!s ?%n! Co.? or none %t %$$ %s int"e #%se %t /%r, in 9"i#" #%se t"e !r%9ee s"o($! not en#%s" t"es%e /(t ere$+ %##et t"e s%e 'or !eosit.

T"e ee#t t"ere'ore o' #rossin4 % #"e#1 re$%tes to t"e o!e o' itsresentent 'or %+ent. ;n!er Se#tion 7 o' t"e Ne4oti%/$eInstr(ents :%9, resentent 'or %+ent to /e s(L#ient (st /e

%!e 2%3 /+ t"e "o$!er, or /+ soe erson %(t"orie! to re#eive%+ent on "is /e"%$' ... As to 9"o t"e "o$!er or %(t"orie! erson9i$$ /e !een!s on t"e instr(#tions st%te! on t"e '%#e o' t"e #"e#1.

T"e t"ree s(/e#t #"e#1s in t"e #%se %t /%r "%! /een #rosse!4ener%$$+ %n! iss(e! %+%/$e to Ne9 Si1%t(n% 0oo! In!(stries, In#.9"i#" #o($! on$+ e%n t"%t t"e !r%9er "%! inten!e! t"e s%e 'or!eosit on$+ /+ t"e ri4"t'($ erson, i.e., t"e %+ee n%e! t"erein.A%rent$+, it 9%s not t"e %+ee 9"o resente! t"e s%e 'or%+ent %n! t"ere'ore, t"ere 9%s no roer resentent, %n! t"e$i%/i$it+ !i! not %tt%#" to t"e !r%9er.

T"(s, in t"e %/sen#e o' !(e resentent, t"e !r%9er !i! not/e#oe $i%/$e. 7Conse


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G.R. No. 04 M)r-: , 14

BATAAN !IGAR AND !IGARETTE $A!TOR", IN!., etitioner, vs.T%E !OURT O$ APPEAL )*< TATE IN3ETMENT %OUE,IN!., reson!ents.

NO!ON, J.:

For o(r revie9 is t"e !e#ision o' t"e Co(rt o' Ae%$s in t"e #%seentit$e! ?St%te Investent Ho(se, In#. v. 6%t%%n Ci4%r @ Ci4%retteF%#tor+ In#.,?1%Lrin4 t"e !e#ision o' t"e Re4ion%$ Tri%$ Co(rt 2in

% #o$%int $e! /+ t"e St%te Investent Ho(se, In#. 2"erein%'terre'erre! to %s SIHI3 'or #o$$e#tion on t"ree (n%i! #"e#1s iss(e! /+6%t%%n Ci4%r @ Ci4%rette F%#tor+, In#. 2"erein%'ter re'erre! to %s6CCFI3. T"e 'ore4oin4 !e#isions (n%nio(s$+ r($e! in '%vor o' SIHI,t"e riv%te reson!ent in t"is #%se.

E%n%tin4 'ro t"e re#or!s %re t"e 'o$$o9in4 '%#ts. Petitioner,6%t%%n Ci4%r @ Ci4%rette F%#tor+, In#. 26CCFI3, % #oror%tioninvo$ve! in t"e %n('%#t(rin4 o' #i4%rettes, en4%4e! one o' itss($iers, Kin4 Ti P(% Geor4e 2"erein %'ter re'erre! to %s Geor4eKin43, to !e$iver ,))) /%$es o' to/%##o $e%' st%rtin4 O#to/er &>7*.In #onsi!er%tion t"ereo', 6CCFI, on =($+ &, &>7* iss(e! #rosse!

#"e#1s ost !%te! soetie in M%r#" &>7> in t"e tot%$ %o(nt o'P*),))).)).

Re$+in4 on t"e s($ierXs reresent%tion t"%t "e 9o($! #o$ete!e$iver+ 9it"in t"ree ont"s 'ro De#e/er 5, &>7*, etitioner

%4ree! to (r#"%se %!!ition%$ ,5)) /%$es o' to/%##o $e%ves,!esite t"e s($ierXs '%i$(re to !e$iver in %##or!%n#e 9it" t"eire%r$ier %4reeent. A4%in etitioner iss(e! ost !%te! #rosse!#"e#1s in t"e tot%$ %o(nt o' P&,&)),))).)), %+%/$e soetie inSete/er &>7>.4

D(rin4 t"ese ties, Geor4e Kin4 9%s si($t%neo(s$+ !e%$in4 9it"riv%te reson!ent SIHI. On =($+ &>, &>7*, "e so$! %t % !is#o(nt#"e#1 TC6T 55&*5/e%rin4 %n %o(nt o' P&B,))).)), ost!%te! M%r#" &, &>7>, !r%9n /+ etitioner, n%in4 Geor4e Kin4 %s%+ee to SIHI. On De#e/er &> %n! , &>7*, "e %4%in so$! toreson!ent #"e#1s TC6T Nos. )*>7 @ )*>*,6/ot" in t"e

%o(nt o' P&)),))).)), ost !%te! Sete/er &5 @ ), &>7>rese#tive$+, !r%9n /+ etitioner in '%vor o' Geor4e Kin4.

In %s (#" %s Geor4e Kin4 '%i$e! to !e$iver t"e /%$es o' to/%##o$e%' %s %4ree! !esite etitionerXs !e%n!, 6CCFI iss(e! on M%r#"), &>7>, % sto %+ent or!er on %$$ #"e#1s %+%/$e to Geor4eKin4, in#$(!in4 #"e#1 TC6T 55&*. S(/se


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T"e Ne4oti%/$e Instr(ents :%9 st%tes 9"%t #onstit(tes % "o$!er in!(e #o(rse, t"(s

Se#. 5 Z A "o$!er in !(e #o(rse is % "o$!er 9"o "%s t%1ent"e instr(ent (n!er t"e 'o$$o9in4 #on!itions

%.3 T"%t it is #o$ete %n! re4($%r (on its '%#e/.3 T"%t "e /e#%e t"e "o$!er o' it /e'ore it 9%s over!(e,

%n! 9it"o(t noti#e t"%t it "%! /een revio(s$+!is"onore!, i' s(#" 9%s t"e '%#t

#.3 T"%t "e too1 it in 4oo! '%it" %n! 'or v%$(e!.3 T"%t %t t"e tie it 9%s ne4oti%te! to "i "e "%! no

noti#e o' %n+ inrit+ in t"e instr(ent or !e'e#t in t"etit$e o' t"e erson ne4oti%tin4 it.

Se#tion 5> o' t"e NI: '(rt"er st%tes t"%t ever+ "o$!er is!eee!prima facie% "o$!er in !(e #o(rse. Ho9ever, 9"en it is

s"o9n t"%t t"e tit$e o' %n+ erson 9"o "%s ne4oti%te! t"einstr(ent 9%s !e'e#tive, t"e /(r!en is on t"e "o$!er to rove t"%t"e or soe erson (n!er 9"o "e #$%is, %#


34/44


%tt%#" to t"e !r%9er. T"(s, in t"e %/sen#e o' !(eresentent, t"e !r%9er !i! not /e#oe $i%/$e.Conse


35/44


P$%inti %n! !e'en!%nts t"ro(4" t"eir rese#tive(n!ersi4ne! %ttorne+Xs rese#t'($$+ s(/it t"e 'o$$o9in4A4ree! Sti($%tion o' F%#ts

3irst. Z T"%t on or %/o(t * Sete/er &>5, in t"e evenin4,

!e'en!%nt Anit% C. G%t#"%$i%n 9"o 9%s t"en intereste! in$oo1in4 'or % #%r 'or t"e (se o' "er "(s/%n! %n! t"e '%i$+,9%s s"o9n %n! oere! % #%r /+ M%n(e$ Gon%$es 9"o 9%s%##o%nie! /+ Ei$ F%%r!o, t"e $%tter /ein4 erson%$$+1no9n to !e'en!%nt Anit% C. G%t#"%$i%n

.econd. Z T"%t M%n(e$ Gon%$es reresente! to !e'en!Anit% C. G%t#"%$i%n t"%t "e 9%s !($+ %(t"orie! /+ t"eo9ner o' t"e #%r, O#%o C$ini#, to $oo1 'or % /(+er o' s%i!#%r %n! to ne4oti%te 'or %n! %##o$is" s%i! s%$e, /(t 9"i#"'%#ts 9ere not 1no9n to $%inti

Third. Z T"%t !e'en!%nt Anit% C. G%t#"%$i%n, n!in4 t"eri#e o' t"e #%r Sete/er &>5 'or t"e"osit%$i%tion o' t"e 9i'e o' M%n(e$ Gon%$es %n! neit"er or/ot" o' s%i! !e'en!%nts "%! %ss(e!, eress$+ ori$ie!$+, 9it" t"e O#%o C$ini#, t"e o/$i4%tion o' M%n(e$Gon%$es or "is 9i'e 'or t"e "osit%$i%tion o' t"e $%tter

5ight. Z T"%t !e'en!%nts, /ot" or eit"er o' t"e, "%! noo/$i4%tion or $i%/i$it+, !ire#t$+ or in!ire#t$+ 9it" t"e O#%oC$ini# /e'ore, or on > Sete/er &>5

+inth. Z T"%t M%n(e$ Gon%$es "%vin4 re#eive! t"e #"e#1E". ?6? 'ro !e'en!%nt Anit% C. G%t#"%$i%n (n!er t"ereresent%tions %n! #on!itions "erein %/ove se#ie!,!e$ivere! t"e s%e to t"e O#%o C$ini#, in %+ent o' t"e'ees %n! eenses %risin4 'ro t"e "osit%$i%tion o' "is9i'e

5


36/44


Tenth. Z T"%t $%inti 'or %n! in #onsi!er%tion o' 'ees %n!eenses o' "osit%$i%tion %n! t"e re$e%se o' t"e 9i'e o'M%n(e$ Gon%$es 'ro its "osit%$, %##ete! s%i! #"e#1,%$+in4 PBB&.75 2E"i/it ?A?3 t"ereo' to %+ent o' s%i!'ees %n! eenses %n! !e$iverin4 to M%n(e$ Gon%$es t"e%o(nt o' P&5*.5 2%s er re#eit, E"i/it ?D?3 reresentin4t"e /%$%n#e on t"e %o(nt o' t"e s%i! #"e#1, E". ?6?

5le"enth. Z T"%t t"e %#ts o' %##et%n#e o' t"e #"e#1 %n!%$i#%tion o' its ro#ee!s in t"e %nner se#ie! %/ove9ere %!e 9it"o(t revio(s in


37/44


T"e #"e#1 #o($! not "%ve /een inten!e! to %+ t"e "osit%$'ees 9"i#" %o(nte! on$+ to PBB&.75. T"e #"e#1 is in t"e%o(nt o' P)).)), 9"i#" is in e#ess o' t"e %o(nt !(e$%inti. 2P%r. &), Sti($%tion o' F%#ts3.

It 9%s ne#ess%r+ 'or $%inti to 4ive M%n(e$ Gon%$es#"%n4e in t"e s( P&5*.5 2P%r. &), Sti($%tion o' F%#ts3.Sin#e M%n(e$ Gon%$es is t"e %rt+ o/$i4e! to %+, $%intis"o($! "%ve /een ore #%(tio(s %n! 9%r+ in %##etin4 %ie#e o' %er %n! !is/(rsin4 #o$! #%s".

T"e #"e#1 is %+%/$e to /e%rer. Hen#e, %n+ erson 9"o"o$!s it s"o($! "%ve /een s(/e#te! to in& !enes ?"o$!er? %s t"e %+ee or in!orsee o' %/i$$ or note, 9"o is in ossession o' it, or t"e /e%rer t"ereo'.Se#. 5 !e'en!%nts !enes % "o$!er in !(e #o(rse %s ?%

"o$!er 9"o "%s t%1en t"e instr(ent (n!er t"e 'o$$o9in4#on!itions &. T"%t it is #o$ete %n! re4($%r on its '%#e. .T"%t "e /e#%e t"e "o$!er o' it /e'ore it 9%s over!(e, %n!9it"o(t noti#e t"%t it "%! /een revio(s$+ !is"onore!, i's(#" 9%s t"e '%#t. . T"%t "e too1 it in 4oo! '%it" %n! 'orv%$(e. B. T"%t %t t"e tie it 9%s ne4oti%te! to "i "e "%! nonoti#e o' %n+ inrit+ in t"e instr(ent or !e'e#t in t"e tit$eo' t"e erson ne4oti%tin4 it.?

Sin#e ?"o$!er?, %s !ene! in se#. &>&, in#$(!es % %+ee 9"ois in ossession t"e 9or! "o$!er in t"e rst #$%(se o' se#. 5%n! in t"e se#on! s(/se#tion %+ /e re$%#e! /+ t"e!enition in se#. &>& so %s to re%! ?% "o$!er in !(e #o(rse is% %+ee or in!orsee 9"o is in ossession,? et#. 26r%nn%nXson Ne4oti%/$e Instr(ents :%9, t" e!., . 5B3.

T"e rst %r4(ent o' t"e !e'en!%nts-%e$$%nts, t"ere'ore,

!een!s (on 9"et"er or not t"e $%inti-%e$$ee is % "o$!er in!(e #o(rse. I' it is s(#" % "o$!er in !(e #o(rse, it is i%teri%$ t"%tit 9%s t"e %+ee %n! %n ie!i%te %rt+ to t"e instr(ent.

T"e ot"er #ontention o' t"e $%inti is t"%t t"ere "%s /een none4oti%tion o' t"e instr(ent, /e#%(se t"e !r%9er !i! not !e$ivert"e instr(ent to M%n(e$ Gon%$es 9it" t"e intention o' ne4oti%tin4t"e s%e, or 'or t"e (rose o' 4ivin4 ee#t t"ereto, 'or %s t"esti($%tion o' '%#ts !e#$%res t"e #"e#1 9%s to re%in in t"eossession M%n(e$ Gon%$es, %n! 9%s not to /e ne4oti%te!, /(t9%s to serve ere$+ %s evi!en#e o' 4oo! '%it" o' !e'en!%nts in t"eir!esire to (r#"%se t"e #%r /ein4 so$! to t"e. A!ittin4 t"%t s(#"

9%s t"e intention o' t"e !r%9er o' t"e #"e#1 9"en s"e !e$ivere! itto M%n(e$ Gon%$es, it 9%s no '%($t o' t"e $%inti-%e$$ee !r%9eei' M%n(e$ Gon%$es !e$ivere! t"e #"e#1 or ne4oti%te! it. As t"e#"e#1 9%s %+%/$e to t"e $%inti-%e$$ee, %n! 9%s entr(ste! toM%n(e$ Gon%$es /+ G%t#"%$i%n, t"e !e$iver+ to M%n(e$ Gon%$es9%s % !e$iver+ /+ t"e !r%9er to "is o9n %4ent in ot"er 9or!s,M%n(e$ Gon%$es 9%s t"e %4ent o' t"e !r%9er Anit% G%t#"%$i%ninso'%r %s t"e ossession o' t"e #"e#1 is #on#erne!. So, 9"en t"e%4ent o' !r%9er M%n(e$ Gon%$es ne4oti%te! t"e #"e#1 9it" t"eintention o' 4ettin4 its v%$(e 'ro $%inti-%e$$ee, ne4oti%tiontoo1 $%#e t"ro(4" no '%($t o' t"e $%inti-%e$$ee, (n$ess it #%n /es"o9n t"%t t"e $%inti-%e$$ee s"o($! /e #onsi!ere! %s "%vin4

7


38/44


noti#e o' t"e !e'e#t in t"e ossession o' t"e "o$!er M%n(e$Gon%$es. O(r reso$(tion o' t"is iss(e $e%!s (s to % #onsi!er%tion o't"e $%st


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Re. 7>, &*& N.. S(. >&, %!. in eo., &>& A. Div.>B7, &*& N.. S(. >B5.? 2. B)-B, 6r%nn%nXsNe4oti%/$e Instr(ents :%9, t" e!.3.

T"e %/ove #onsi!er%tions 9o($! see s(L#ient to (sti'+ o(r r($in4

t"%t $%inti-%e$$ee s"o($! not /e %$$o9e! to re#over t"e v%$(e o't"e #"e#1. :et (s no9 e%ine t"e eress rovisions o' t"eNe4oti%/$e Instr(ents :%9 ertinent to t"e %tter to n! i' o(rr($in4 #on'ors t"ereto. Se#tion 5 2#3 rovi!es t"%t % "o$!er in !(e#o(rse is one 9"o t%1es t"e instr(ent ?in 4oo! '%it" %n! 'orv%$(e? Se#tion 5>, ?t"%t ever+ "o$!er is !eee! ri% '%#ie to /e %"o$!er in !(e #o(rse? %n! Se#tion 5 2!3, t"%t in or!er t"%t one%+ /e % "o$!er in !(e #o(rse it is ne#ess%r+ t"%t ?%t t"e tie t"einstr(ent 9%s ne4oti%te! to "i ?"e "%! no noti#e o' %n+ . . .!e'e#t in t"e tit$e o' t"e erson ne4oti%tin4 it? %n! $%st$+ Se#tion5>, t"%t ever+ "o$!er is !eee!prima facieto /e % "o$!er in !(e#o(rse.

In t"e #%se %t /%r t"e r($e t"%t % ossessor o' t"e instr(entisprima facie% "o$!er in !(e #o(rse !oes not %$+ /e#%(se t"ere9%s % !e'e#t in t"e tit$e o' t"e "o$!er 2M%n(e$ Gon%$es3, /e#%(set"e instr(ent is not %+%/$e to "i or to /e%rer. On t"e ot"er"%n!, t"e sti($%tion o' '%#ts in!i#%te! /+ t"e %e$$%nts in t"eir/rie', $i1e t"e '%#t t"%t t"e !r%9er "%! no %##o(nt 9it" t"e %+eet"%t t"e "o$!er !i! not s"o9 or te$$ t"e %+ee 9"+ "e "%! t"e #"e#1in "is ossession %n! 9"+ "e 9%s (sin4 it 'or t"e %+ent o' "iso9n erson%$ %##o(nt Z s"o9 t"%t "o$!erXs tit$e 9%s !e'e#tive ors(si#io(s, to s%+ t"e $e%st. As "o$!erXs tit$e 9%s !e'e#tive ors(si#io(s, it #%nnot /e st%te! t"%t t"e %+ee %#


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9"i#" s"o($! en%#t it, 9e %re #onstr%ine! to "o$! 2#ontr%r+to t"e r($e %!ote! in o(r 'orer !e#isions3 t"%t ne4$i4en#eon t"e %rt o' t"e $%inti, or s(si#io(s #ir#(st%n#ess(L#ient to (t % r(!ent %n on in*), Att+. 6en%res, in%##oo!%tion o' "is #$ients, t"e so(ses =%ie %n! C$%rit%On4, iss(e! C"e#1 No. )>55 !r%9n %4%inst Tr%!ers Ro+%$6%n1, !%te! =(ne &B, &>*), in t"e %o(nt o' PB5,))).))2E"- XIX3 %+%/$e to !e'en!%nt Ernestin% Criso$o4o-=ose.Sin#e t"e #"e#1 9%s (n!er t"e %##o(nt o' MoverEnterrises, In#., t"e s%e 9%s to /e si4ne! /+ its resi!ent,Att+. Os#%r J. 6en%res, %n! t"e tre%s(rer o' t"e s%i!#oror%tion. Ho9ever, sin#e %t t"%t tie, t"e tre%s(rer o'Mover Enterrises 9%s not %v%i$%/$e, Att+. 6en%res rev%i$e!(on t"e $%inti, Ri#%r!o S. S%ntos, =r., to si4n t"e %'ores%i!#"E#1 %s %n %$tern%te stor+. P$%inti Ri#%r!o S. S%ntos, =r. !i!si4n t"e #"e#1.

It %e%rs t"%t t"e #"e#1 2E". X&X3 9%s iss(e! to !e'en!%ntErnestin% Criso$o4o-=ose in #onsi!er%tion o' t"e 9%iver or


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/+ t"e GSIS o' t"e #oroise %4reeent 9it" t"e so(sesOn4, t"e #"e#1 9i$$ /e en#%s"e! %##or!in4$+. Ho9ever, sin#et"e #oroise %4reeent 9%s not %rove! 9it"in t"eee#te! erio! o' tie, t"e %'ores%i! #"e#1 'or PB5,))).))2E". X&X3 9%s re$%#e! /+ Att+. 6en%res 9it" %not"er Tr%!ersRo+%$ 6%n1 #"ee1 /e%rin4 No. 7>>> !%te! A(4(st &),&>*), in t"e s%e %o(nt o' PB5,))).)) 2E"s. XAX %n! XX3,%$so %+%/$e to t"e !e'en!%nt =ose. T"is re$%#eent #"e#19%s %$so si4ne! /+ Att+. Os#%r J. 6en%res %n! /+ t"e$%inti Ri#%r!o S. S%ntos, =r. 0"en !e'en!%nt !eosite! t"isre$%#eent #"e#1 2E"s. XAX %n! XX3 9it" "er %##o(nt %tF%i$+ S%vin4s 6%n1, M%+on 6r%n#", it 9%s !is"onore! 'orins(L#ien#+ o' '(n!s. A s(/se


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t"e (rose o' $en!in4 "is n%e 'or t"e #re!it o' soe ot"ererson.

6%se! on t"e 'ore4oin4 re


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reson!ent Ri#%r!o S. S%ntos, =r., resi!ent %n! vi#e-resi!ent,rese#tive$+, o' Mover Enterrises, In#.

. On "er se#on! %ssi4nent o' error, etitioner %r4(es t"%tt"e Co(rt o' Ae%$s erre! in "o$!in4 t"%t t"e #onsi4n%tiono' t"e s( o' PB5,))).)), %!e /+ riv%te reson!ent %'ter"is ten!er o' %+ent 9%s re'(se! /+ etitioner, 9%s roer(n!er Arti#$e &5 o' t"e Civi$ Co!e.

PetitionerXs s(/ission is t"%t no #re!itor-!e/tor re$%tions"i eists/et9een t"e %rties, "en#e #onsi4n%tion is not roer.Con#oit%nt$+, t"is %r4(ent 9%s reise! on t"e %ss(tion t"%triv%te reson!ent S%ntos is not %n %##oo!%tion %rt+.

As revio(s$+ !is#(sse!, "o9ever, reson!ent S%ntos is %n%##oo!%tion %rt+ %n! is, t"ere'ore, $i%/$e 'or t"e v%$(e o' t"e#"e#1. T"e '%#t t"%t "e 9%s on$+ % #o-si4n%tor+ !oes not !etr%#t

'ro "is erson%$ $i%/i$it+. A #o-%1er or #o-!r%9er (n!er t"e#ir#(st%n#es in t"is #%se is %s (#" %n %##oo!%tion %rt+ %st"e ot"er #o-si4n%tor+ or, 'or t"%t %tter, %s % $one si4n%tor+ in %n%##oo!%tion instr(ent. ;n!er t"e !o#trine in &hilippine Bankof Commerce "s( 1ruego, supra, "e is in ee#t % #o-s(ret+ 'or t"e%##oo!%te! %rt+ 9it" 9"o "e %n! "is #o-si4n%tor+, %s t"eot"er #o-s(ret+, %ss(e so$i!%r+ $i%/i$it+ e $e4e 'or t"e !e/tinvo$ve!. 0it" t"e !is"onor o' t"e #"e#1, t"ere 9%s #re%te! %!e/tor-#re!itor re$%tions"i, %s /et9een Att+. 6en%res %n!reson!ent S%ntos, on t"e one "%n!, %n! etitioner, on t"e ot"er.T"is #ir#(st%n#e en%/$es reson!ent S%ntos to resort to %n %#tiono' #onsi4n%tion 9"ere "is ten!er o' %+ent "%! /een re'(se! /+

etitioner.

0e interose t"e ca"eat, "o9ever, t"%t /+ "o$!in4 t"%t t"e ree!+o' #onsi4n%tion is roer (n!er t"e 4iven #ir#(st%n#es, 9e !o nott"ere/+ r($e t"%t %$$ t"e oer%tive '%#ts 'or #onsi4n%tion 9"i#"9o($! ro!(#e t"e ee#t o' %+ent %re resent in t"is #%se. T"ose%re '%#t(%$ iss(es t"%t %re not #$e%r in t"e re#or!s /e'ore (s %n!9"i#" %re 'or t"e Re4ion%$ Tri%$ Co(rt o' (eon Cit+ to %s#ert%in in

Civi$ C%se No. -&), 'or 9"i#" re%son it "%s %!vise!$+ /een!ire#te! /+ reson!ent #o(rt to 4ive !(e #o(rse to t"e #o$%int'or #onsi4n%tion, %n! 9"i#" 9o($! /e s(/e#t to s(#" iss(es or#$%is %s %+ /e r%ise! /+ !e'en!%nt %n! t"e #o(nter#$%i $e!t"erein 9"i#" is "ere/+ or!ere! sii$%r$+ revive!.

. T"%t reson!ent #o(rt virt(%$$+ re(!4e! Criin%$ C%seNo. -&B*7 o' t"e Re4ion%$ Tri%$ Co(rt o' (eon Cit+ $e!%4%inst riv%te reson!ent 'or vio$%tion o' 6%t%s P%/%ns%6$4. , /+ "o$!in4 t"%t no #riin%$ $i%/i$it+ "%! +et %tt%#"e!to riv%te reson!ent 9"en "e !eosite! 9it" t"e #o(rt t"e

%o(nt o' PB5,))).)) is t"e n%$ $%int o' etitioner.

0e s(st%in etitioner on t"is s#ore.

In!ee!, reson!ent #o(rt 9ent /e+on! t"e r%tio#in%tion #%$$e! 'orin t"e %e%$ to it in CA-G.R. CV. No. )5BB. In its o9n !e#isiont"erein, it !e#$%re! t"%t ?2t3"e $one iss(e !9e$$s in t"e


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'(n!s or #re!it is not resent %n!, t"ere'ore, t"e #rie !oesnot eist, 9"en t"e !r%9er %+s t"e "o$!er t"e %o(nt !(eor %1es %rr%n4eents 'or %+ent in '($$ /+ t"e !r%9ee o's(#" #"e#1 9it"in ve 253 /%n1in4 !%+s %'ter re#eivin4noti#e t"%t s(#" #"e#1 "%s not /een %i! /+ t"e !r%9ee.

6%se! on t"e 'ore4oin4 #onsi!er%tion, t"is Co(rt n!s t"%tt"e $%inti-%e$$%nt %#te! 9it"in Ms $e4%$ ri4"ts 9"en "e#onsi4ne! t"e %o(nt o' PB5,))).)) on A(4(st &B, &>*&,/et9een A(4(st 7, &>*&, t"e !%te 9"en $%inti-%e$$%ntre#eive 2si#3 t"e noti#e o' non-%+ent, %n! A(4(st &B,&>*&, t"e !%te 9"en t"e !e/t !(e 9%s !eosite! 9it" t"eC$er1 o' Co(rt 2% S%t(r!%+ %n! % S(n!%+ 9"i#" %re not/%n1in4 !%+s3 intervene!. T"e 't" /%n1in4 !%+ 'e$$ onA(4(st &B, &>*&. Hen#e, no #riin%$ $i%/i$it+ "%s +et%tt%#"e! to $%inti-%e$$%nt 9"en "e !eosite! t"e%o(nt o' PB5,))).)) 9it" t"e Co(rt a 2uoon A(4(st &B,

&>*&.

11

T"%t s%i! o/serv%tions %!e in t"e #ivi$ #%se %t /%r %n! t"eintr(sion into t"e erits o' t"e #riin%$ #%se en!in4 in %not"er#o(rt %re iroer !o not "%ve to /e /e$%/ore!. In t"e $%tter #%se,t"e #riin%$ tri%$ #o(rt "%s to 4r%$e 9it" s(#" '%#t(%$ iss(es %s,'or inst%n#e, 9"et"er or not t"e erio! o' ve /%n1in4 !%+s "%!eire!, in t"e ro#ess !eterinin4 9"et"er noti#e o' !is"onors"o($! /e re#1one! 'ro %n+ rior noti#e i' %n+ "%s /een 4iven or'ro re#eit /+ riv%te reson!ents o' t"e s(/oen% t"erein 9it"s(ortin4 %L!%vits, i' %n+, or 'ro t"e rst !%+ o' %#t(%$re$iin%r+ investi4%tion %n! 9"et"er t"ere 9%s % (sti#%tion 'or

not %1in4 t"e re

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