Bdo Unibank v. Francisco Pua

Summary

BDO Unibank sued Francisco Pua for estafa after he attempted to change loan funders using dishonored checks totaling P41.5 million. The criminal case was dismissed by lower courts for lack of probable cause, finding insufficient evidence of fraudulent misrepresentation. The Supreme Court dismissed BDO's petition on the criminal aspect due to lack of proper OSG representation but recognized BDO's civil rights. The Court applied Civil Code provisions on payment by third parties and subrogation, ruling that BDO, having paid the original funders with respondent's knowledge, acquired subrogation rights and could recover the amount paid. The case was remanded to the RTC for proceedings on the civil aspect, establishing important precedent on banking relationships and third-party payment obligations.