- Petitioner
- Spouses Raul
- Respondent
- Citibank
- Citation
- G.R. No. 156335
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Austria-Martinez, J.
- Decided
- November 28, 2007
Summary
The Supreme Court dismissed petitioners' claim for return of PhP2,134,635.87 invested in C&P Homes Long-Term Commercial Paper through Citibank. Petitioners contended they opened a trust account with specific instructions, but Citibank placed funds in high-risk LTCP without authorization. The Court found the transaction constituted a valid investment management agreement, not a trust, based on documents signed by petitioner Amalia including DIMA and Directional Letter. The Court held petitioners assumed all investment risks under the principal-agent relationship and could not recover from Citibank absent fraud. Petitioners' eight-month delay in protesting and continued acceptance of interest payments indicated ratification of the agreement. The decision affirms that investment management accounts are governed by agency principles, with recourse limited to the actual issuer rather than the managing bank.