2.2 Ni Onate LBP Vs Onate
2.2 Ni Onate LBP Vs Onate
*
LAND BANK OF THE PHILIPPINES, petitioner, vs.
EMMANUEL OÑATE, respondent.
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* SECOND DIVISION.
679
ify under the exception to the hearsay rule and given weight, the
party offering them must establish that: (1) the person who made
those entries is dead, outside the country, or unable to testify; (2)
the entries were made at, or near the time of the transaction to
which they refer; (3) the entrant was in a position to know the
facts stated therein; (4) the entries were made in the professional
capacity or in the course of duty of the entrant; and, (5) the
entries were made in the ordinary or regular course of business or
duty.
Mercantile Law; Banks and Banking; Time and again, the
Supreme Court has cautioned banks to spare no effort in ensuring
the integrity of the records of its clients.—Time and again, we have
cautioned banks to spare no effort in ensuring the integrity of the
records of its clients. And in Philippine National Bank v. Court of
Appeals, 217 SCRA 347 (1993) we held that “as between parties
where negligence is imputable to one and not to the other, the
former must perforce bear the consequences of its neglect.” In this
case, the Board could have submitted a more accurate report had
Land Bank faithfully complied with its duty of maintaining a
complete and accurate record of Oñate’s accounts. But the Board
could not find and present the corresponding slips for the
withdrawals reflected in the passbooks. In addition, and as earlier
mentioned, Land Bank was less than cooperative when the Board
was examining the records of Oñate’s accounts. It did not give the
Board enough leeway to go over the records systematically or in
orderly fashion. Hence, we cannot allow Land Bank to benefit
from possible inaccuracies in the reports. Neither does Oñate’s
failure to exercise his rights to inspect the records and audit his
accounts excuse the bank from sending the required notices, for
under the IMAs it behooved upon Land Bank to keep him fully
informed of the status of his investments by sending him regular
reports and statements. Oñate’s failure to inspect the record of his
accounts should neither be construed as his waiver to be
furnished with updates on his accounts nor authority for the bank
to make undocumented withdrawals.
Remedial Law; Civil Procedure; Pre-Trial; To obviate the
element of surprise, parties are expected to disclose at a pre-trial
conference all issues of law and fact which they intend to raise at
the trial, except such as may involve privileged or impeaching
matters.—During the pre-trial conference, the issue of the validity
of undocumented withdrawals was properly put into issue. The
parties also
680
681
682
683
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7 An Act To Ordain The Agricultural Land Reform Code And To
Institute Land Reforms In The Philippines, Including The Abolition Of
Tenancy And The Channeling Of Capital Into Industry, Provide For The
Necessary Implementing Agencies, Appropriate Funds Therefor and For
Other Purposes. Approved August 8, 1963.
8 See Passbook 1, Exhibit “D-31.”
9 See Passbook 2, Exhibit “F-3.”
10 See Passbook 7, Exhibit “C-3.”
11 See Passbook 5, Exhibit “B-3.”
12 See Passbook 4, Exhibit “A-3.”
13 See Passbook 3, Exhibit “E-3.”
14 See Passbook 6, Exhibit “G-3.”
15 Records, Vol. I, pp. 9-23.
684
685
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16 Id.
17 Id., at p. 33.
686
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18 As alleged in paragraph 14 of the Complaint, id., at pp. 5-6. But per Annex
“P” of the same Complaint, id., at pp. 34-35, the total amount debited was
P1,471,416.52.
19 Id., at pp. 1-8.
20 Under paragraph 15 of the Complaint, Land Bank explained how it arrived
at the amount of P8,222,687.89, viz.:
15. [Oñate’s] outstanding indebtedness to LANDBANK stands at
P8,222,687.89 as of May 15, 1992, which was computed on the basis of the more
than P4 Million erroneously credited to [Oñate] multiplied by 12% interest per
annum from the date of the erroneous crediting up to February 4, 1992, minus
P1,528,583.48 representing the balance standing in [Oñate’s] personal trust
accounts which was applied as payment by way of set-off. x x x (Id., at p. 6.)
21 Should be 1980.
22 Id.
687
688
689
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26 Id., at pp. 153-159.
27 Id., at pp. 144-145. Emphases in the original.
690
i) The sum of P220,999,472.36, representing the
outstanding balance on the peso deposits [of Oñate’s]
various trust accounts as of January 1993, with interest
thereon from said date at the rate of eighteen percent (18%)
compounded every ninety (90) days, until the said amount
is fully paid;
ii) The sum of $3,472,683.94, representing the
aggregate balance as of January 1993 on [Oñate’s] dollar
deposits [in] Trust Account No. 01-014, with interest
thereon from said date at the rate of six percent (6%)
compounded every ninety (90) days, until the said amount
is fully paid;
iii) The sum of P100,000,000.00 as and by way of moral
damages;
iv) The sum of P50,000,000.00 as and by way of
exemplary damages; and
v) The sum of P15,000,000.00, or 20% of all sums
collected, whichever is higher, as and for attorney’s fees, the
further sum of P3,000.00 as appearance fee for each hearing
attended, and such other sums that may be proved during
the trial as litigation expenses.28
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28 Id., at pp. 151-152.
29 Id., Vol. II, pp. 409-410.
691
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30 (i) Report of the Board of Commissioners dated September 24, 1999, id., Vol.
V, pp. 1432-1441; (ii) supplemental summary report dated January 27, 2000, id.,
Vol. III, pp. 790-797; (iii) second supplemental report dated April 6, 2000, id., at
pp. 811-812.
31 See Order dated May 25, 2004, id., Vol. IV, p. 1216.
32 Id., at pp. 1220-1228.
33 Per commissioners’ consolidated report dated August 16, 2004, id.,
“withdrawals” is defined as cash outflow reflected on the passbooks of Oñate, while
“drawings” is cash outflow from the capital contribution of Oñate per his Letter of
Instructions.
692
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34 Id., at pp. 1380-1381.
35Id., at pp. 1229-1230.
36 See Comment (Re: Board of Commissioners’ Compliance dated 16
August 2004), id., at pp. 1241-1245.
693
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37 See Order dated June 10, 2005, id., at p. 1286.
38 Id., at pp. 1288-1307.
39 See Land Bank’s Memorandum dated August 5, 2005, id., at pp.
1319-1345.
40 Id., at pp. 1358-1387.
694
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41 Broken down as follows: Trust Account No. 01-014, P170,172.91;
Trust Account No. 01-017, P622,422.34; Trust Account No. 01-082,
P4,175.88; Trust Account No. 01-089, P148,298.79; and, Trust Account No.
01-125, P526,346.61, for a total amount of P1,471,416.52.
695
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42 Records, Vol. IV, p. 1387.
43 Id., at pp. 1388-1399.
44 Id., at pp. 1416-1417.
45 CA Rollo, pp. 484-511.
46 Broken down as follows:
PESO ACCOUNTS
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01-075 500,000.00
01-082 1,782,741.86
01-089 5,054,089.00
01-125 4,640,551.34
TOTAL P60,663,488.11
DOLLAR ACCOUNT
697
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698
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50 Rollo, p. 465.
51 Records, Vol. I, p. 33.
52 Id., at pp. 34-35.
53 Id., at p. 36.
699
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54 Id., at pp. 34-35.
700
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55 See Memorandum dated October 4, 2011, Rollo, pp. 443-528, 508.
56 SEC. 3. Representatives as parties.—Where the action is allowed to
be prosecuted or defended by a representative or someone acting in a
fiduciary capacity, the beneficiary shall be included in the title of the case
and shall be deemed to be the real party in interest. A representative may
be a trustee of an express trust, a guardian, an executor or administrator,
or a party authorized by law or these Rules. An agent acting in his own
name and for the benefit of an undisclosed principal may sue or be sued
without joining the principal except when the contract involves things
belonging to the principal.
57 G.R. No. 183059, August 28, 2009, 597 SCRA 519.
701
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58 CBP Circular No. 824-81 dated September 17, 1981; Subsection
2415.1 of the 1982 Manual of Regulations for Banks (MORB); and CBP
Memorandum dated October 16, 1990 and the 1993 MORB.
703
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59 CA Rollo, p. 504.
704
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60 See Order dated June 10, 2005, Records, Vol. IV, p. 1286.
61 See paragraph 7 of the Petition, Rollo, p. 39.
62 Atiko Trans., Inc. v. Prudential Guarantee and Assurance, Inc., G.R. No.
167545, August 17, 2011, 655 SCRA 625, 633.
63 539 Phil. 377, 386-387; 510 SCRA 320, 329-330 (2006).
705
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64 Section 4, Rule 3, The Internal Rules of the Supreme Court
enumerates the following exceptions: (a) the conclusion is a finding
grounded entirely on speculation, surmise and conjecture; (b) the
inference made is manifestly mistaken; (c) there is grave abuse of
discretion; (d) the judgment is based on a misapprehension of facts; (e) the
findings of fact are conflicting; (f) the collegial appellate courts went
beyond the issues of the case, and their findings are contrary to the
admissions of both appellant and appellee; (g) the findings of fact of the
collegial appellate courts are contrary to those of the trial court; (h) said
findings of fact are conclusions without citation of specific evidence on
which they are based; (i) the facts set forth in the petition as well as in the
petitioner’s main and reply briefs are not disputed by the respondents; (j)
the findings of fact of the collegial appellate courts are premised on the
supposed evidence, but are contradicted by the evidence on record; and, (k)
all other similar and exceptional cases warranting a review of the lower
courts’ findings of fact.
706
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65 Valarao v. Court of Appeals, 363 Phil. 495, 506; 304 SCRA 155, 164
(1999). Citations omitted.
66 Canque v. Court of Appeals, 365 Phil. 124, 131; 305 SCRA 579, 585-
586 (1999).
707
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67 SEC. 43. Entries in the course of business.—Entries made at, or
near the time of the transactions to which they refer, by a person
deceased, or unable to testify, who was in a position to know the facts
therein stated, may be received as prima facie evidence, if such person
made the entries in his professional capacity or in the performance of duty
and in the ordinary or regular course of business or duty.
68 CA Rollo, p. 504.
708
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69 See Land Bank’s Memorandum dated October 13, 2011, Rollo, pp.
443-528, 462.
70 Records, Vol. I, p. 4.
71 439 Phil. 475; 390 SCRA 608 (2002).
709
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72 Passbook Under Account No. 101 5759-3 with Name of Depositor
LBP ITF 01-125 marked as Exhibits “G-18” to “G-19”.
73 Hyatt Elevators and Escalators Corporation v. Cathedral Heights
Building Complex Association, Inc., G.R. No. 173881, December 1, 2010,
636 SCRA 401, 412.
710
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74 Records, Vol. I, p. 143.
711
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75 Id., at pp. 9-23.
76 Article 1159 of the Civil Code of The Philippines provides:
Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith.
712
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77 See Manifestation dated August 16, 2004, Records, Vol. IV, pp. 1229-
1230.
78 Id.
79 Id.
80 Id.
713
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81 262 Phil. 387, 395-396; 183 SCRA 360, 366-367 (1990).
714
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82 Dycoco, Jr. v. Equitable PCI Bank, G.R. No. 188271, August 16,
2010, 628 SCRA 346, 353.
83 G.R. No. 97995, January 21, 1993, 217 SCRA 347, 358.
715
x x x The least that Land Bank could have done was to keep
a detailed quarterly report on [its] file. In this case, Land
Bank did away with this procedure that made [its] records a
complete mess of voluminous and meaningless records of
numerous folders containing more than 7,600 leaves/pages
and some 90 passbooks, with 1,355 leaves/pages of entries,
corresponding to the seven (7) Trust Accounts.
The passbook entries alone are insufficient compliance
with Land Bank’s duty to keep “accurate records of all
investments, receipts, disbursements and other
transactions of the Account.” These passbooks do not inform
what investments were made on the funds withdrawn.
Moreover, these passbook entries do not show if the
amounts purported to have been invested were in-
716
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84 CA Rollo, p. 509.
85 Id., at p. 505.
717
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86G.R. No. 174966, February 14, 2008, 545 SCRA 422, 429.
87Diona v. Balangue, G.R. No. 173559, January 7, 2013, 688 SCRA 22,
35-36.
88 See Order dated June 10, 2005, Records, Vol. IV, p. 1286.
89 G.R. No. 97753, August 10, 1992, 212 SCRA 448, 462.
718
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90 Records, Vol. I, pp. 9-11.
91 Id., at pp. 12-14.
719
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92 Id., Vol. IV, p. 1387.
93 Id., Vol. 1, p. 33.
94 Id., at p. 34.
720
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95 Id., at pp. 153-159.
721
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96 See Land Bank’s letter to Oñate’s counsel dated June 4, 1991, id., at
p. 60 as well as the latter’s letter to the former dated June 20, 1991, id., at
pp. 61-62.
722
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97 G.R. No. 175139, April 18, 2012, 670 SCRA 95, 106.
98 G.R. No. 97412, July 12, 1994, 234 SCRA 78.
723
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99 Id.
100 Id., at pp. 94-95.
101 Emphasis supplied.
102 Id., at p. 96.
103 See Letter dated June 4, 1991, Records, Vol. I, p. 60; Letter dated
June 20, 1991, id.
724
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104 See Comment (Re: Board of Commissioners’ Compliance dated 16
August 2004), id., at pp. 1241-1245.
725