Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1986 > November 1986 Decisions > G.R. No. 74521 November 11, 1986 - BANK OF AMERICA NT & SA v. INTERMEDIATE APPELLATE COURT, ET AL.:




PHILIPPINE SUPREME COURT DECISIONS

FIRST DIVISION

[G.R. No. 74521. November 11, 1986.]

BANK OF AMERICA NT & SA, Petitioner, v. THE HON. FIRST CIVIL CASES DIVISION, INTERMEDIATE APPELLATE COURT and AIR CARGO AND TRAVEL CORPORATION, Respondents.

Agcaoili & Associates for Petitioner.

Marcelo P. Villanueva for Respondents.


D E C I S I O N


MELENCIO-HERRERA, J.:


As the Petition and the Comment submitted by private respondent Air Cargo and Travel Corporation (ACTC) have sufficiently argued the legal question involved in this case, the Court has resolved to give due course to the Petition, with private respondent’s Comment being its Answer, and to consider this case submitted for decision.

The basic relevant facts have been stated by respondent Appellate Court as follows:jgc:chanrobles.com.ph

"Shorn of non-essentials, the facts are: Plaintiff Air Cargo and Travel Corporation is the owner of Account Number 19842-01-2 with defendant Bark of America. Defendant Toshiyuki Minami, President of plaintiff corporation in Japan, is the owner of Account Number 24506-01-7 with defendant Bank.

On March 10, 1981, the Bank received a tested telex advise from Kyowa Bank of Japan stating:chanrob1es virtual 1aw library

‘ADVISE PAY USDLS 23,595. — TO YOUR A/C NBR 24506-01-7 OF A. C. TRAVEL CORPORATION MR. TOSHIYUKO MINAMI.’

"and the Bank Credited the amount of US$23,595.00 to Account Number 24606-07—1 (should be 24506-01-7) owned, as aforesaid, by Minami.

On March 12, 1981, Minami withdrew the sum of P180,000.00 the equivalent in Philippine Pesos of the sum of US$23,595.00 from the Bank on his Account Number 24506-07-1 (should be 24506-01-7)."cralaw virtua1aw library

It may be explained that the "tested" telex advice is a message signed in "code." Evidently, there was a previous contractual agreement between Kyowa Bank of Japan (KYOWA) and Petitioner (BANKAMERICA) that, from time to time, KYOWA can ask BANKAMERICA to pay amounts to a third party (beneficiary) with BANKAMERICA afterwards billing KYOWA the indicated amount given to the beneficiary. To assure itself that an Order received from KYOWA really comes from KYOWA, it is usually agreed that KYOWA’s signature will be in accordance with a confidential code.cralawnad

According to ACTC in its Comment, in the early part of 1981, it was Tokyo Tourist Corporation in Japan which applied with Kyowa Bank, Ltd. also based in Tokyo, Japan, for telegraphic transfer of the sum of US$23,595.00 payable to ACTC’s account with BANKAMERICA, Manila.

When the tested telex was received on May 10, 1981, employees of BANKAMERICA noted its patent ambiguity. Notwithstanding, on the following day, BANKAMERICA credited the amount of US$23,595.00 to the account of Minami. ACTC claimed that the amount should have been credited to its account and demanded restitution, but BANKAMERICA refused.

On February 18, 1982, ACTC filed suit for damages against BANKAMERICA and Minami before the Trial Court in Pasig for the failure of BANKAMERICA to restitute. Minami was declared in default. Thereafter, judgment was rendered with the following dispositive part:jgc:chanrobles.com.ph

"IN VIEW OF THE FOREGOING CONSIDERATIONS, the Court upon a judicious and fair assessment of the testimonial and documentary evidences submitted by the parties is of the opinion and so holds that defendant Bank and defendant Minami must pay plaintiff, jointly and severally the following:chanrob1es virtual 1aw library

1. The sum of US$23,595.00 or in Philippine Currency at the current guiding rate of exchange which is P14.00 to the dollar, as and by way of actual damages with interest at the rate of twelve (12%) per cent per annum from the filing of the complaint until fully paid;

2. The sum of P50,000.00 as temperate and exemplary damages;

3. The sum of P10,000.00 as attorney’s fees;

4. The costs of this suit.

SO ORDERED."cralaw virtua1aw library

Upon appeal taken by BANKAMERICA, Respondent Court "affirmed in toto," except that the dollar-peso rate of exchange would be that "at the time of payment." Said respondent Court:jgc:chanrobles.com.ph

"We must say that the Bank personnel were in fact confused or in doubts as to the real payee.

The Senior Clerk who initially received the tested telex had called up Mr. Colegado, Mr. Ichiban, Miss Mayagama and Atty. Villanueva, all of plaintiff-appellee, but he received `no answer.’ (Exh. 3; pp. 9-10, t.s.n., Dec. 2, 1982).

Thereupon, the processor checked the alphabetical listings and he saw that the payee, Account Number 24506-01-7, matched the name appearing in the tested telex advise (p. 10, t.s.n., Dec. 2, 1981).

The gross negligence then of appellant Bank may be sum (sic) up as follows: The words ‘A.C. TRAVEL CORPORATION MR. TOSHIYUKO MINAMI’ engendered or cast doubt

on the part of the Senior Clerk as to the real payee

despite the ‘A.C. NBR 24506-01-7’ and

should have consulted higher officials of plaintiff before giving the advise to the processor who sent the same to the computer center for ultimate processing (p. 11, Appellant’s Brief).

The processor verified that Account Number 24506-01-7 belonged to TOSHIYUKO MINAMI’ only and not to `A.C. TRAVEL CORPORATION MR. TOSHIYUKO MINAMI’ and this circumstance should have moved the processor to be more prudent and to consult higher officials instead of sending the advise to the computer center for processing or crediting the remittance to the account of Toshiyuko Minami." (Additional paragraphings supplied)

We are constrained to reverse.

It is our considered opinion that, in the tested telex, considered either as a patent ambiguity or as a latent ambiguity, the beneficiary is Minami. The mention of Account No. 24506-01-7, as well as the name of Minami, has to be given more weight than the mention of the name of ACTC. BANK-AMERICA could not have very well disregarded that account number. It could also be that the mention of ACTC’s name was a further identification of Minami, to prevent payment to a possible another "Toshiyuko Minami" who may not be connected with ACTC. On the other hand, it should be difficult to concede that, in the tested telex, Account No. 24506-01-7 was erroneously written and should be substituted by Account No. 19842-01-2 in the name of ACTC.chanrobles.com:cralaw:red

In Vargas Plow Factory, Inc. v. Central Bank, it was held that "the opening of a letter of credit in favor of the exporter becomes ultimately but the result of a stipulation pour autrui" (27 SCRA 84 [1969]). Similarly, when KYOWA asked BANK-AMERICA to pay an amount to a beneficiary (either ACTC or Minami), the contract was between KYOWA and BANK-AMERICA and it had a stipulation pour autrui.

It should be recalled that the tested telex originated from KYOWA at the behest of Tokyo Tourist Corporation with whom ACTC had business dealings. Minami, on the other hand, was the liaison officer of ACTC in Japan. As the entity responsible for the tested telex was Tokyo Tourist Corporation, it can reasonably be concluded that if it had intended that the US$23,595.00 should be credited to ACTC, upon learning that the amount was credited to Minami, it should have gone, together with the representatives of ACTC, in protest to KYOWA and lodged a protest. Since that was not done, it could well be that Tokyo Tourist Corporation had really intended its remittance to be credited to Minami. The identity of the beneficiary should be in accordance with the identification made by KYOWA, and ACTC cannot question that identification as it is not a party to the arrangement between KYOWA and BANK-AMERICA (see Manila Railroad Co. v. Compañia Trasatlantica, 38 Phil. 875 [1918]).

WHEREFORE, the Decision of Respondent Court, in its case AC-G.R. CV No. 03985, is hereby reversed in so far as Bank of America, NT & SA is concerned.

Without pronouncement as to costs.

SO ORDERED.

Yap, Narvasa, Cruz and Paras, JJ., concur.

Feliciano, J., is on leave.




Back to Home | Back to Main


chanrobles.com



ChanRobles Professional Review, Inc.

ChanRobles Professional Review, Inc. : www.chanroblesprofessionalreview.com
ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com
ChanRobles CPA Review Online

ChanRobles CPALE Review Online : www.chanroblescpareviewonline.com
ChanRobles Special Lecture Series

ChanRobles Special Lecture Series - Memory Man : www.chanroblesbar.com/memoryman





November-1986 Jurisprudence                 

  • G.R. No. L-32507 November 4, 1986 - PEOPLE OF THE PHIL. v. FRANCISCO PANCHO, ET AL.

  • G.R. No. L-40945 November 10, 1986 - IGMEDIO AZAJAR v. COURT OF APPEALS, ET AL.

  • G.R. No. L-41811 November 10, 1986 - GOVERNMENT SERVICE INSURANCE SYSTEM v. COURT OF APPEALS, ET AL.

  • G.R. No. L-42180 November 10, 1986 - CONCESO DIAZ v. COURT OF APPEALS, ET AL.

  • G.R. No. L-46392 November 10, 1986 - EMMA DELGADO v. COURT OF APPEALS, ET AL.

  • G.R. No. L-47276 November 10, 1986 - ESPERANZA BUYCO v. SECRETARY OF LABOR

  • G.R. Nos. L-50622-23 November 10, 1986 - BERNARDO CARABOT, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-60548 November 10, 1986 - PHILIPPINE GLOBAL COMMUNICATIONS, INC. v. BENJAMIN RELOVA

  • G.R. Nos. L-68523-24 November 10, 1986 - PEOPLE OF THE PHIL. v. WILLIAM ESLABON, ET AL.

  • G.R. No. L-68789 November 10, 1986 - JOSE LEE, ET AL. v. PRESIDING JUDGE, MUNICIPAL TRIAL COURT OF LEGAZPI CITY, BRANCH I, ET AL.

  • G.R. No. 74521 November 11, 1986 - BANK OF AMERICA NT & SA v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. Nos. L-68268 November 12, 1986 - FELIX VILLACORTA v. PEOPLE OF THE PHIL., ET AL.

  • G.R. No. L-41315 November 13, 1986 - PILIPINAS SHELL PETROLEUM CORPORATION v. OIL INDUSTRY COMMISSION, ET AL.

  • G.R. No. L-46573 November 13, 1986 - PABLO B. LOLA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. L-55033-34 November 13, 1986 - PEOPLE OF THE PHIL. v. RENATO M. ALDEMITA

  • G.R. Nos. L-62654-58 November 13, 1986 - PEOPLE OF THE PHIL. v. RAMON DAGANGON, ET AL.

  • G.R. No. L-69876 November 13, 1986 - PEOPLE OF THE PHIL. v. PUTTHI NATIPRAVAT, ET AL.

  • G.R. No. 70145 November 13, 1986 - MARCELO A. MESINA v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 70332-43 November 13, 1986 - GENEROSO TRIESTE, SR. v. SANDIGANBAYAN

  • G.R. Nos. 71942-43 November 13, 1986 - PEOPLE OF THE PHIL. v. CARLITO DE JESUS

  • G.R. No. L-24856 November 14, 1986 - NATIONAL POWER CORPORATION v. EIN CHEMICAL CORPORATION, ET AL.

  • G.R. No. L-43706 November 14, 1986 - NATIONAL POWER CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. L-45255 November 14, 1986 - HEIRS OF MARCIANA G. AVILA v. COURT OF APPEALS, ET AL.

  • G.R. No. L-48787 November 14, 1986 - ABADESA MUÑOZ HECHANOVA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. L-57184-85 November 14, 1986 - PEOPLE OF THE PHIL. v. EUGENIA ABANO, ET AL.

  • G.R. No. L-59604 November 14, 1986 - PEOPLE OF THE PHIL. v. VICTORIO B. PIA

  • G.R. No. 74243 November 14, 1986 - ASUNCION SANTOS v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. L-50103 November 24, 1986 - PEOPLE OF THE PHIL. v. LEONARDO TOLENTINO

  • G.R. No. L-53834 November 24, 1986 - PEOPLE OF THE PHIL. v. MANUEL E. TAN, JR., ET AL.

  • G.R. No. L-54901 November 24, 1986 - PEOPLE OF THE PHIL. v. RICARDO ABUEG

  • G.R. No. L-65629 November 24, 1986 - TERESITA E. AGBAYANI, ET AL. v. ANTONIO M. BELEN, ET AL.

  • G.R. No. 71305 November 24, 1986 - MANUEL SOLIMAN v. SANDIGANBAYAN, ET AL.

  • G.R. No. 71381 November 24, 1986 - PEOPLE OF THE PHIL. v. CONSTANTINO PECARDAL

  • G.R. No. L-43182 November 25, 1986 - MARCIAL F. SAMSON v. COURT OF APPEALS, ET AL.

  • G.R. No. L-56315 November 25, 1986 - CLEMENTE FONTANAR, ET AL. v. RUBEN BONSUBRE, ET AL.

  • G.R. No. L-68230 November 25, 1986 - COMMISSIONER OF INTERNAL REVENUE v. CONSTRUCTION RESOURCES OF ASIA, INC., ET AL.

  • G.R. No. L-68298 November 25, 1986 - PEOPLE OF THE PHIL. v. BENJAMIN BAÑARES

  • G.R. No. 71410 November 25, 1986 - JOSEFINO S. ROAN v. ROMULO T. GONZALES, ET AL.

  • G.R. No. 72182 November 25, 1986 - DEE HUA LIONG ELECTRICAL EQUIPMENT CORPORATION v. ROMEO REYES, ET AL.

  • G.R. No. L-23039 November 26, 1986 - RAMCAR, INC. v. CENTRAL BANK OF THE PHILIPPINES

  • G.R. No. L-42230 November 26, 1986 - LAURO IMMACULATA v. PEDRO C. NAVARRO

  • G.R. No. L-46145 November 26, 1986 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-53692 November 26, 1986 - LOURDES RAMOS, ET AL. v. GUILLERMO N. PABLO, ET AL.

  • G.R. No. L-55912 November 26, 1986 - HEIRS OF DOMINGO P. BALOY, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-59919 November 26, 1986 - MALAYAN INSURANCE CO., INC. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 73184-88 November 26, 1986 - ZAMBALES BASE METALS, INC. v. MINISTER OF LABOR, ET AL.

  • G.R. No. 75089 November 26, 1986 - LILIA LOPEZ-JISON v. SOCIAL SECURITY COMMISSION, ET AL.

  • A.M. No. R-565-P November 27, 1986 - CONSORCIA BALAIS v. FRANCISCO ABUDA

  • A.M. No. R-586-P November 27, 1986 - CONSTANCIA FABRIGARAS v. NORA B. NEMEÑO

  • G.R. No. L-43195 November 27, 1986 - FIDEL GUEVARRA v. WORKMEN’S COMPENSATION COMMISSION, ET AL.

  • G.R. No. L-48117 November 27, 1986 - BRICCIO B. TENORIO v. ERNANI CRUZ PAÑO, ET AL.

  • G.R. No. L-55703 November 27, 1986 - PHILIPPINE OVERSEAS DRILLING AND OIL DEVELOPMENT CORPORATION v. MINISTRY OF LABOR, ET AL.

  • G.R. No. L-59213 November 27, 1986 - CONGRESSIONAL COMMERCIAL CORPORATION, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-45101 November 28, 1986 - ROSARIO C. MAGUAN v. COURT OF APPEALS, ET AL.

  • G.R. No. L-46158 November 28, 1986 - TAYUG RURAL BANK v. CENTRAL BANK OF THE PHILIPPINES

  • G.R. No. 73399 November 28, 1986 - PEOPLE OF THE PHIL. v. RAMON S. ABEDES