Is a bank safety deposit box a deposit or a lease in the Philippines?

Answer

A bank safety deposit box arrangement is treated as a special kind of deposit rather than an ordinary lease. In CA Agro-Industrial Development Corp. v. Court of Appeals (G.R. No. 90027, 1993) and Sia v. Court of Appeals (G.R. No. 102970, 1993) the Supreme Court held that although the contract has features of a lease, the prevailing rule is that it is a special deposit governed by the Civil Code, so the bank must exercise the diligence required of a depositary in safekeeping the box and its contents.

Because it is a deposit for safekeeping, a stipulation that completely exempts the bank from any liability for the loss of the contents is not given full effect; the bank remains answerable for a loss caused by its own negligence.

Sources & further reading

• Civil Code Art. 1962 — deposit defined
• CA Agro v. Court of Appeals (G.R. 90027)
• Full report: deposit

Cases on this topic

• Antonino v. Banco Oro
• Bank of the Philippine Islands v. Herridge
• CA Agro v. Court of Appeals
• Gonzales v. Tiong
• Philippine National Bank v. Producers' Warehouse Association
• Sia v. Court of Appeals
• US v. Dominguez
• Velasco v. China Banking

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