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Case Digest - Metrobank Vs CA

In the case of Metropolitan Bank and Trust Company vs. Court of Appeals, the court addressed the responsibility of an agent for both fraud and negligence in agency relationships. Eduardo Gomez deposited treasury warrants with Golden Savings, which were later dishonored after being processed by Metrobank. The ruling highlighted the complexities of agency liability and the implications of negligence in financial transactions.

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Royet Maligro
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32 views1 page

Case Digest - Metrobank Vs CA

In the case of Metropolitan Bank and Trust Company vs. Court of Appeals, the court addressed the responsibility of an agent for both fraud and negligence in agency relationships. Eduardo Gomez deposited treasury warrants with Golden Savings, which were later dishonored after being processed by Metrobank. The ruling highlighted the complexities of agency liability and the implications of negligence in financial transactions.

Uploaded by

Royet Maligro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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13. Metropolitan Bank and Trust Company vs.

Court of Appeals

Doctrine: The agent is responsible not only for fraud, but also for negligence, which shall be judged with
more or less rigor by the courts, according to whether the agency was or was not for a compensation.

Facts:
Eduardo Gomez opened an account with Golden Savings and Loan Association, and deposited 38
treasury warrants of P1.7 M for more than two months. These warrants were drawn by the Philippine
Fish Marketing Authority, signed by its general manager and auditor. Out of 38, 6 treasury warrants
were payable to Gomez while the others were indorsed to him by other payees.
Later, all these warrants were subsequently indorsed by Gloria Castillo as Cashier of Golden
Savings and deposited to its Savings Account in the Metrobank branch in Mindoro. The principal office of
Metrobank forwarded the same to the Bureau of Treasury for special clearing.
After more than two weeks, Castillo inquired if the warrants had already been cleared. She was
told to wait. Gomez was not also allowed to withdraw. But out of exasperation and because Golden
Savings was a valued client, Metrobank allowed Golden Savings to withdraw from the proceeds of the
warrants. In turn, Golden Savings allowed Gomez to make withdrawals.
However, Metrobank informed Golden Savings that 32 of the warrants had been dishonored by
the Bureau of Treasury and demanded refund to make up its deficit account. Golden Savings rejected.

Issue:

Ruling:

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