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(Also Article 315 (2) (d) estafa of the RPC, Section 13, 14 and 12
as to undated checks, and stale checks)
Issue: If the holder intentionally did not encash the check will the
sale be consummated in the light of Article 1249 of the Civil
Code?
Issue: What are the elements of the felony of estafa under Article
315 (2) (d) of the Revised Penal Code? Can one waive the
negotiable character of the check and treat it simply as proof of an
obligation (evidence of indebtedness)? How material is the fact
that the check was issued undated? What is the effect of a stale
check?
(Note this is instructive as to evidence but this subject is not
covered by NIL. Quotable Quotes: Vice Chancellor Van Flee once
said Evidence to be believed must not only proceed from the
mouth of a credible witness but must be credible in itself such as
the common experience and observation of mankind can approve
as probable under the circumstances. We have no test of the truth
of human testimony, except its conformity to our knowledge,
observation and experience. Whatever is repugnant to these
belongs to the miraculous, and is outside of judicial cognizance.)
2. Benny Go vs. Eliodoro Bacaron, G.R. No. 159048, October
11, 2005, Third Division, J. Panganiban
Issue: Are checks evidence of indebtedness?
Issue: What is the history of Article 315 (2) (d) of the Revised
Penal Code? Is a NI a medium of commercial transaction?
4. Concepcion Chua Gaw vs. Suy Ben Chua and Felisa Chua,
G.R. No. 160855, April 16, 2008, Third Division, J. Nachura
Outline of NIL Decided Cases 1996 and up, Atty. Rene Alexis P. Villarente, MBA, Ateneo de Davao University College of Law, Updated October 10, 2012.
Issue: Can a check the entries of which are in writing prove a loan
transaction? If Emilia was acquitted of violations of BP 22 can she
nevertheless be required to pay the debt she owes?
D. It is specie of property
1. Gemma T. Jacinto vs. People of the Philippines, G.R. No.
162540, July 13, 2009, Third Division, J. Peralta.
Issue: Are checks by itself personal property? May it be subject to
theft even if it bounced?
(Also this is instructive about impossible crime Article 4 [2] of the
Revised Penal Code. But these topics are outside the scope of the
negotiable instrument law which is the prime subject of this.)
2. People of the Philippines vs. Bernard G. Mirto, G.R. No.
193479, October 19, 2011, Third Division, J. Velasco, Jr.
Issue: Are checks by itself personal property? May it be subject to
theft or qualified theft?
3. Anita L. Miranda vs. People of the Philippines, G.R. No.
176298, January 25, 2012, First Division, J. Villarama, Jr.
Issue: Are checks by itself personal property? May it be subject of
qualified theft?
Section 1
(Also negotiability)
vouchers
commercial
documents
E. Proof of Payment
1. Francisco Taquinod vs. Deputy Sheriff Rolando Tomas,
RTC, Branch 21, Santiago City, A.M. No. P-09-2660,
November 29, 2011, En Banc, Per Curiam.
Issue: Are checks proof of payment and so proof of violation of
Section 2 (e), Canon III of the Code of Conduct?
F. Evidence of Indebtedness
notes
evidence
of
indebtedness
Outline of NIL Decided Cases 1996 and up, Atty. Rene Alexis P. Villarente, MBA, Ateneo de Davao University College of Law, Updated October 10, 2012.
Section 7
Issue: Did the promissory note comply with Section 1 of the NIL?
What is the presumption of consideration?
What is the
consequence of an instrument issued in blank?
(Note Quotable Quotes: The time is now ripe to give teeth to the
often ignored forty-one-year old Truth in Lending Act and thus
transform it from a snivelling paper tiger to a growling financial
watchdog of hapless borrowers)
Issue: What is the effect of the issuance of bearer checks that were
not crossed? Is this proof that the transaction was not for loan but
the promise for travel documents to Japan?
Outline of NIL Decided Cases 1996 and up, Atty. Rene Alexis P. Villarente, MBA, Ateneo de Davao University College of Law, Updated October 10, 2012.
Sections 22
(Also, Section 52 holder in due course, Section 28 failure or
absence of consideration)
1. Atrium Management Corporation vs. Court of Appeals, E.T.
Henry and Co., Lourdes Victoria M. De Leon, Rafael De Leon,
Jr., and Hi-Cement Corporation, G.R. No. 109491, February
28, 2001, First Division, J. Pardo
Sections 23
(Forgery)
Outline of NIL Decided Cases 1996 and up, Atty. Rene Alexis P. Villarente, MBA, Ateneo de Davao University College of Law, Updated October 10, 2012.
Issue: What is the effect of the negligence of the drawer on the rule
that when the signature of the drawer is forged (Section 23) the
drawee bears the loss?
7. Michael A. Osmea vs. Citibank, N.A., Associated Bank and
Frank Tan, G.R. No. 141278, March 23, 2004, Second Division,
J. Callejo, Sr.
Issue: Was there negligence on the part of the banks in paying the
amount of the check without the indorsement of Frank Tan? Is the
ruling in the Associated Bank case (1996) on the liability of a
collecting bank applicable in this case?
parties,
collecting
banks
clearing
CONSIDERATION
Sections 24, 25, 28, 191 (value)
(Rule 131 Section 3 (r) and (s) of the Rules of Court)
Outline of NIL Decided Cases 1996 and up, Atty. Rene Alexis P. Villarente, MBA, Ateneo de Davao University College of Law, Updated October 10, 2012.
(Note, no mention where the check was drawn and what was the
reason for the dishonor or if it was dishonored in the first place).
Issue:
What is an accommodation party?
accommodation party here not liable?
Why is the
Outline of NIL Decided Cases 1996 and up, Atty. Rene Alexis P. Villarente, MBA, Ateneo de Davao University College of Law, Updated October 10, 2012.
LIABILITIES OF PARTIES
Sections 61, 62 (189) 64, 65, 66
[Also accommodation party, liability of collecting bank, NI not
legal tender]
1. Bank of the Philippine Islands vs. Court of Appeals and
Benjamin C. Napiza, G.R. No. 112392, February 29, 2000, First
Division, J. Ynares-Santiago
Issue: What is the liability of a general indorser? Is this liability
applicable to Napiza? Is Napiza liable as an accommodation
party? What is the meaning of depositing a check to a collecting
bank?
(Also degree of care of banks, Note: exception to the degree of
diligence required of banks)
2. Gregorio H. Reyes and Consuelo Puyat-Reyes vs. Court of
Appeals, and Far East Bank and Trust Company, G.R. No.
118492, August 15, 2001, Second Division, J. De Leon, Jr.
Issue: Was there unjust enrichment for transfer of the value of the
managers check without consideration? Is Ong privy to the
transaction between Ong and Sarande? What is a holder in due
course and holder for value? What is the presumption of
consideration? What is the effect of want or failure of
consideration? What is the effect of a managers check and
certified check? What is the liability of an acceptor? What is the
degree of care required of banks?
Outline of NIL Decided Cases 1996 and up, Atty. Rene Alexis P. Villarente, MBA, Ateneo de Davao University College of Law, Updated October 10, 2012.
(Note the suit was for damages not on the payment of the value of
the demand draft)
(Also nature of banking business, legal tender, negligence, Section
89 notice of dishonor)
Issue: Whether a collecting bank has the right to debit the account
of its client for a check that was dishonored by a drawee? What is
the right of set-off and how should the bank exercise this right?
What is the nature of the obligation of a depository bank? Give the
nature of the banking business? Is a check a legal tender? What is
the relation of payee or holder of a commercial paper and the
collecting bank? Whose negligence was the proximate cause of
the loss? Is there a need for the bank to give notice to Tan? What
is the basis for such notice requirement? What is the applicability
of Sections 66 and 89 of the NIL to this case?
4. Solidbank Corporation vs. Spouses Teodulfo and Carmen
Arrieta, G.R. No. 152720, February 17, 2005, Third Division, J.
Panganiban
Issue: Is the drawee bank who did not accept (dishonor a check)
liable for damages in a suit filed by the drawer?
5. Maria Tuazon, et.al. vs. Heirs of Bartolome Ramos, G.R. No.
156262, July 14, 2005, Third Division, J. Panganiban
Issue: What are the liabilities of the drawer and drawee of both
has contributory negligence?
NOTICE OF DISHONOR
Sections 89, 114
(Note while it appears applicable the SC did not rule that this
instrument is incomplete and undelivered, Section 15 of NIL)
Issue: What is the meaning of the term issue? What is the reason
of the need for notice of dishonor in BP 22?
8b. Jaime Tan vs. People of the Philippines, G.R. No. 168543,
April 27, 2007, Second Division, J. Carpio Morales
Issue: Is there a necessity of knowledge on the part of indorser
(Tan) that Gemma (drawer) has no sufficient funds? What is deceit
in estafa?
(Note while it is not expressly mentioned this case is instructive on
the necessary proceedings on dishonor be duly taken before
indorse be made liable under Section 66)
9. Equitable PCI Bank vs. Arcelito B. Tan, G.R. No. 165339,
August 23, 2010, Second Division, J. Peralta
Issue: Does the drawee bank that allowed payment of a post dated
check before its due date that caused the dishonor of the drawers
other issued checks liable to the drawer for damages? What is the
meaning of a drawee bank? What is the liability of a drawee bank?
10. Citibank, N.A. vs. Atty. Ernesto S. Dinopol, G.R. No.
188412, November 22, 2010, Second Division, J. Mendoza
Issue: What is the liability of a drawee bank that wrongfully
dishonors a check? What is the diligence required of banks only
Roman pater familias? What is the degree of diligence required of
banks by the General Banking Law of 2000?
(Also accommodation party)
10. Philippine National Bank vs. Spouses Cheah Chee Chong
and Ofelia Camacho Cheah/Spouses Cheah Chee Chong and
Ofelia Camacho Chea vs. Philippine National Bank, G.R. No.
170865/G.R. No. 170892, April 25, 2012, First Division, J. Del
Castillo
Outline of NIL Decided Cases 1996 and up, Atty. Rene Alexis P. Villarente, MBA, Ateneo de Davao University College of Law, Updated October 10, 2012.
Section 119
1. Marciano Tan vs. Philippine Commercial International
Bank, G.R. No. 152666, April 23, 2008, Second Division, J.
Carpio Morales.
Issue: What is the element of knowledge of insufficient fund in
BP 22. How does the BP 22 create the presumption of knowledge?
What is the remedy for the person liable to escape liability? Was
payment made when the buses were surrendered? Does payment
obliterate criminal liability?
Sections 152
(Also negotiation and indorsement. Distinction between contract of
an indorser and that of a guarantor/surety of a commercial paper)
1. Allied Banking Corporation vs. Court of Appeals, G.G.
Sportswear Manufacturing Corporation, Nari Gidwani,
Spouses Leticia and Leon de Villa and Alcron International
LTD. G.R. No. 125851, July 11, 2006, Third Division, J.
Quisumbing
Issue: Can respondents, in their capacity as guarantors and surety,
be held jointly and severally liable under the Letters of Guaranty
and Surety, in the absence of protest on the bill in accordance with
Section 152 of the NIL?
(Note Case did not rule delve on the fact that letters of credit is not
a negotiable instrument nor on the negotiability of an export bill)
2. Producers Bank of the Philippines vs. Excelsa Industries,
Inc., G.R. No. 152071, May 8, 2009, Second Division, J. Tinga
Issue: What is the effect that this suit is under Article 19 of the
Civil Code? What about Sections 189 and 147 of the NIL?
4. Luzon Development Bank vs. Benedicto C. Conquilla,
Cornelia C. Conquilla, Dorotea C. Orcine and Feliciano S.
Conquilla, G.R. No. 163338, September 21, 2005, Third
Division, J. Panganiban
Issue: What is a promissory note? Is the promissory note proof of
identity parties (Columbia and Coquillas)?
(Also, Section 1 effect of check drawn against closed account:
non-negotiable! Section 6 issued undated, stale check)
5. Victoria J. Ilano, etc. vs. Hon. Dolores Espaol, et. al., G.R.
No. 161756, December 16, 2005
Third Division, J. Carpio Morales
Issue: What are crossed checks and how will these checks affect
holders in due course? Are crossed checks similar to restrictive
indorsements? Are holders (E-PCI) required to ascertain indorsers
title on crossed checks? What is solidary liability and relativity of
contracts (Section 17, Articles 1207 and 1208 of the Civil Code)?
10
Outline of NIL Decided Cases 1996 and up, Atty. Rene Alexis P. Villarente, MBA, Ateneo de Davao University College of Law, Updated October 10, 2012.
11