GR 152720; (February, 2005) (Digest)
G.R. No. 152720 ; February 17, 2005
Solidbank Corporation, petitioner, vs. Spouses Teodulfo and Carmen Arrieta, respondents.
FACTS
Carmen Arrieta, a depositor of Solidbank, issued a check for ₱330.00 to Lopue’s Department Store. The check was sufficiently funded, with her account having a balance of ₱1,275.20. However, Solidbank dishonored the check with the notation “Account Closed.” This prompted the store to send a demand letter threatening criminal prosecution. To avoid this, Arrieta paid the store in cash plus a surcharge.
Arrieta filed a complaint for damages against Solidbank. The bank defended itself by claiming the dishonor was an honest mistake by a substitute clerk who could not find the account ledger and presumed the account was closed. It also alleged Arrieta had violated account terms by failing to maintain a minimum balance. The trial court found Solidbank grossly negligent and awarded moral and exemplary damages and attorney’s fees, a decision affirmed by the Court of Appeals.
ISSUE
Whether Solidbank is liable for moral and exemplary damages and attorney’s fees due to its dishonor of Arrieta’s check.
RULING
Yes, Solidbank is liable. The Supreme Court affirmed the finding of gross negligence. Banks have a fiduciary duty to treat depositor accounts with the highest degree of care. Solidbank’s failure to verify the active status of a well-funded account before dishonoring the check breached this duty. The error of its employee is directly imputable to the bank.
The Court rejected Solidbank’s argument that Arrieta suffered no damages because a prior check had also been dishonored. Each wrongful dishonor constitutes a distinct injury. The bank’s act proximately caused Arrieta mental anguish, sleepless nights, and social humiliation, warranting moral damages. Its gross negligence, amounting to bad faith, justified exemplary damages to serve as a deterrent. Attorney’s fees were also proper as litigation was necessitated by the bank’s actionable omission.
However, the Court found the awarded amounts excessive. It reduced the moral damages from ₱150,000 to ₱50,000, exemplary damages from ₱50,000 to ₱25,000, and attorney’s fees from ₱20,000 to ₱10,000, aligning them with prevailing jurisprudence. The bank’s petition was thus partly granted only to modify the amounts.