GR 150487; (July, 2003) (Digest)
G.R. No. 150487; July 10, 2003
GERARDO F. SAMSON JR., petitioner, vs. BANK OF THE PHILIPPINE ISLANDS, respondent.
FACTS
Petitioner Gerardo Samson Jr., a depositor of Bank of the Philippine Islands (BPI), deposited a Prudential Bank check for P3,500.00 into his Express Teller account. Days later, his daughter’s attempt to withdraw P2,000.00 was declined due to “Insufficient Funds.” This caused Samson embarrassment as he could not produce cash for a waiting creditor. Upon investigation, Samson discovered his check deposit was not credited. BPI confirmed the deposit but could not account for it, later finding that a deposit envelope was missing and that its security guard had encashed the check. Despite knowing of the irregularity, BPI failed to promptly investigate or inform Samson, and its manager displayed arrogance and discourtesy towards him.
The trial court ruled in favor of Samson, awarding moral damages. The Court of Appeals affirmed BPI’s liability but reduced the moral damages from P200,000.00 to P50,000.00, noting the principal sum of P3,500.00 had been restored. Samson appealed, arguing the reduction was improper and that his claim for higher damages, due to the severance of his credit line and humiliation, remained valid.
ISSUE
Whether the Court of Appeals erred in reducing the award of moral damages from P200,000.00 to P50,000.00.
RULING
The Supreme Court partly granted the petition and increased the moral damages to P100,000.00. The Court affirmed that banks, being imbued with public interest, must exercise the highest degree of care. BPI’s gross negligence in losing the check deposit, failing to promptly investigate, and its manager’s discourteous behavior constituted bad faith, warranting moral damages. While moral damages are not meant to enrich the claimant and must be reasonable and proportionate, the appellate court’s reduction to P50,000.00 was too low considering the gravity of the bank’s negligence and the resulting injury to Samson’s credit standing and reputation. The Court emphasized that the loss of creditworthiness to a businessman is a serious injury. Thus, modifying the award to P100,000.00 better approximated the suffering inflicted by the bank’s gross negligence and bad faith.