Agustin Y. Go v. Honorable Intermediate Appellate Court

Summary

This case involves a bank's negligence in allowing an impostor to deposit and encash altered U.S. treasury checks using the name of an innocent American retiree. The bank manager failed to notice obvious discrepancies between the payee's correct name and address on the checks versus the depositor's information, then filed criminal charges against the innocent victim. The Supreme Court affirmed the award of nominal damages, ruling that while filing criminal cases is generally not actionable, the bank's gross negligence in handling the transaction was the root cause of the respondent's subsequent embarrassment and inconvenience during criminal investigation. The decision establishes that banks must exercise due diligence in verifying depositor identity, especially for foreign currency instruments, and that employers are vicariously liable for employees' negligence under Article 2180 of the Civil Code unless they prove due diligence in selection and supervision.