- Petitioner
- Republic Planters Bank
- Respondent
- Ricardo O. Montinola, Jr.
- Citation
- G.R. No. 134728
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Garcia, J.
- Decided
- February 23, 2006
Summary
This consolidated case involves sugarcane planters Montinola Jr. and Monfort who sued Republic Planters Bank for breach of their crop loan credit line agreement. RPB refused to release P30,000.00 from their credit line and suspended the entire facility solely because the plaintiffs had filed an unrelated case against the bank regarding malversed deposits by a bank employee. Both the RTC and Court of Appeals found RPB acted maliciously and in bad faith. The Supreme Court affirmed the CA's modified decision awarding P500,000.00 actual damages, P500,000.00 moral and exemplary damages, and P200,000.00 attorney's fees, finding these amounts adequately compensated the proven losses while preventing unjust enrichment. The case establishes that banks cannot arbitrarily suspend credit facilities in retaliation for unrelated litigation filed by borrowers.