G.R. No. L-2077

FACTS:
Defendant-appellant Mateo Perez was the salaried manager of Hotel España, owned by the late Jose Soler, from April 1 to November 15, 1900. The owner did not authorize him to exchange money or discount notes for the hotel. In August 1900, Perez, using hotel funds, cashed a check for ₱2,247 for one Calixto Santos, believing it would benefit the business. The check was later discovered to be false, and the amount was lost. The plaintiffs-appellees, the widow and children of Jose Soler, sued Perez to recover the ₱2,247. The trial court ruled in favor of the plaintiffs. On appeal, Perez contended that plaintiff Maria Concepcion Sebastian Lucia had approved his final accounts, which included the loss from the false check as a business loss, and had expressed satisfaction with his management, thereby relieving him of liability.

ISSUE:
Whether the defendant-appellant, Mateo Perez, is liable to reimburse the ₱2,247 lost from cashing the false check, given the plaintiff’s alleged approval of his accounts which included the loss.

RULING:
No. The Supreme Court reversed the trial court’s decision and acquitted the defendant of the complaint. The Court found the defendant’s testimonythat the plaintiff had approved his accounts, accepted the loss as a charge against the business, and expressed satisfaction with his managementto be fully corroborated by the uncontradicted testimony of two disinterested witnesses. The plaintiff, with full knowledge of the facts, approved the accounts as rendered. By such approval, the plaintiff is estopped from subsequently claiming reimbursement for the amount. The defendant is not liable. No costs were awarded.