GR 100867; (April, 1993) (Digest)
G.R. No. 100867 . April 7, 1993.
LIM SIO BIO, also known as CORA LIM and CESAR ONG, petitioners, vs. THE COURT OF APPEALS and PRODUCERS BANK OF THE PHILIPPINES, respondents.
FACTS
Petitioner Lim Sio Bio (Cora Lim) started making money market placements with respondent Producers Bank of the Philippines in 1981. Her initial and subsequent placements were evidenced by Official Receipts and Investment Advices signed by Deborah Dee Santos, an authorized officer of the bank. Upon maturity, these placements were “rolled over” (renewed), with the interest added to the principal. For such roll-overs, Investment Advices (later replaced by Confirmations of Purchase) were issued, but no new Official Receipts were given as the funds remained with the bank. On November 8, 1983, petitioner Lim made two final roll-overs combining all her previous placements and accumulated interests, supported by Confirmations of Purchase stating the bank would issue Manager’s Checks for P2,194,705.86 and P74,634.80 on February 6, 1984. When these matured, the bank refused to pay, arguing the Confirmations of Purchase were merely “preliminary documents,” that the roll-overs did not appear in its records, and that petitioner Lim lacked Official Receipts for them. The Regional Trial Court dismissed the complaint, a decision affirmed by the Court of Appeals.
ISSUE
Whether the Confirmations of Purchase constitute binding obligations on the respondent bank to pay the stated amounts to petitioner Lim.
RULING
Yes. The Supreme Court reversed the decisions of the lower courts. The Confirmations of Purchase are not mere preliminary documents. From the perspective of an ordinary investor, they serve as both a receipt for the funds received and a promise by the bank to repay with interest. The bank is estopped from assailing any erroneous interest amounts stated therein, as they were signed by its authorized officer. The bank failed to exercise the high degree of diligence required in handling its affairs and in supervising its employees. The preponderance of evidence supports petitioner Lim’s claim. Respondent bank is ordered to pay petitioners P2,194,705.86 and P74,634.80 as of February 6, 1984, plus 12% interest per annum from that date until full payment.