- Petitioner
- Bignay Ex-Im Phils. Inc.
- Respondent
- Union Bank G.R. Nos. 171590171598
- Citation
- G.R. No. 171590171598
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Del Castillo, J.
- Decided
- February 12, 2014
Summary
Union Bank sold foreclosed property to Bignay with warranty to defend title, but was later found to have acted in bad faith when the original mortgage was declared void due to forged signature, resulting in Bignay's eviction. The Supreme Court held Union Bank liable for P24 million (P4 million land cost plus P20 million building value) due to gross negligence amounting to bad faith in defending its title. The Court found Union Bank's handling of the annulment case was grossly negligent - its appeal was dismissed for failure to file appellant's brief, subsequent petition was denied for late filing, and annulment petition was dismissed for non-compliance with court rules. The Court dismissed Union Bank's counterclaim, questioning the authenticity of receipts supposedly proving docket fee payment that suddenly appeared during appeal.