“When the time is right, I, the Lord, will make it happen.
”
NATIVIDAD GEMPESAW, petitioner,
vs.
THE HONORABLE COURT OF APPEALS and PHILIPPINE BANK
OF COMMUNICATIONS, respondents.
G.R. No. 92244 February 9, 1993
Facts:
Natividad Gempesaw issued checks, prepared by her bookkeeper, a total of 82
checks in favor of several supplies. Most of the checks for amounts in excess of
actual obligations as shown in their corresponding invoices. It was only after the
lapse of more than 2 years did, she discovered the fraudulent manipulations of her
bookkeeper. It was also learned that the indorsements of the payee were forged,
and the checks were brought to the chief accountant of Philippine Bank of
Commerce (the Drawee Bank, Buendia Branch) who deposited them in the
accounts of Alfredo Romero and Benito Lam. Gempesaw made demand upon the
bank to credit the amount charged due the checks. The bank refused. Hence, the
present action.
Issues:
Who shall bear the loss resulting from the forged indorsements?
Ruling:
As a rule, a drawee bank who has paid a check on which an indorsement has been
forged cannot charge the drawer’s account for the amount of said check. An
exception to the rule is where the drawer is guilty of such negligence which causes
the bank to honor such checks. Gempesaw did not exercise prudence in taking
steps that a careful and prudent businessman would take in circumstances to
discover discrepancies in her account. Her negligence was the proximate cause of
her loss, and under Section 23 of the Negotiable Instruments Law, is precluded
from using forgery as a defense. On the other hand, the banking rule banning
acceptance of checks for deposit or cash payment with more than one indorsement
unless cleared by some bank officials, does not invalidate the instrument; neither
does it invalidate the negotiation or transfer of said checks. The only kind of
indorsement which stops the further negotiation of an instrument is a restrictive
indorsement which prohibits the further negotiation thereof, pursuant to Section 36
of the Negotiable Instruments Law. In light of any case not provided for in the Act
that is to be governed by the provisions of existing legislation, pursuant to Section
196 of the Negotiable Instruments Law, the bank may be held liable for damages in
accordance with Article 1170 of the Civil Code. The drawee bank, in its failure to
discover the fraud committed by its employee and in contravention banking rules
in allowing a chief accountant to deposit the checks bearing second indorsements,
was adjudged liable to share the loss with Gempesaw on a 50:50 ratio.
