Metropolitan Bank v. Spouses Julio Uy

Summary

This case involves a banking dispute where Metropolitan Bank sought to collect P7,839,978.34 from Spouses Uy for dishonored SSS checks that were fraudulently negotiated. The Uys had deposited the checks and immediately withdrew the amounts under an alleged bills purchase arrangement. When the checks were later dishonored, the bank filed a collection case after losing a prior declaratory relief case about mortgage foreclosure. The lower courts dismissed the collection case on grounds of res judicata and prescription. However, the Supreme Court reversed, finding no res judicata because the two cases involved different causes of action - the first case only determined foreclosure rights while the second seeks to establish liability for the dishonored checks. The Court also found the action had not prescribed due to interruption by written demand. The case was remanded for trial on whether the bank can collect from the depositors under principles of unjust enrichment. This decision clarifies the boundaries of res judicata in related banking disputes and reinforces banks' collection rights for fraudulently negotiated instruments.