Prudential Bank v. The Court of Appeals

Summary

This commercial banking dispute involved Aurora Cruz's P200,000 investment in Central Bank bills with Prudential Bank. When Cruz attempted to withdraw her matured investment, the bank claimed she had already withdrawn it, citing a withdrawal slip she signed during a rollover transaction. Cruz maintained she only signed the slip as part of the bank's new procedure for reinvestment, supported by official bank documents confirming the rollover. The Supreme Court found the bank liable for breach of contract, emphasizing that banks have fiduciary duties and cannot disclaim responsibility for their employees' acts within apparent authority. The Court noted the bank's bad faith in denying Cruz's legitimate claim and its suspicious failure to pursue action against the missing employee. The decision reinforced banking law principles regarding institutional liability for employee actions and the trust relationship between banks and depositors.