- Petitioner
- Metropolitan Bank & Trust Company
- Respondent
- Court of Appeals
- Citation
- G.R. No. 88866
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Cruz, J.
- Decided
- February 18, 1991
Summary
Metropolitan Bank sued Golden Savings to recover P968,000.00 withdrawn from uncleared treasury warrants that were later dishonored. The Supreme Court found Metrobank negligent for allowing withdrawals before proper clearance, thereby misleading Golden Savings into believing the warrants were cleared. The Court held that Metrobank, as collecting agent, was responsible for its negligence under Civil Code Article 1909. The treasury warrants were deemed non-negotiable instruments, making the Negotiable Instruments Law inapplicable. The Court affirmed lower courts' decisions favoring Golden Savings but modified the monetary award, requiring Golden Savings to absorb only the P586,589.00 balance that Gomez had not yet withdrawn, while Metrobank bore the loss for the P1,167,500.00 already withdrawn due to its negligent clearance representation.