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    G.R No. 156940 Ledesma-Orencio

    Uploaded by

    Jashim Usop
    The document summarizes a court case between a businessman, Vicente Henry Tan, and Associated Bank regarding checks deposited and withdrawn from Tan's account. Tan deposited postdated checks totaling PHP 101,000 that were cleared by the bank, allowing Tan to withdraw PHP 240,000. However, several checks Tan wrote from his account later bounced due to insufficient funds. While the bank argued it had the right to debit Tan's account, the court ruled in favor of Tan, ordering the bank to pay PHP 100,000 in moral damages, PHP 75,000 in exemplary damages, and PHP 25,000 in attorney's fees for the bank's negligence in allowing withdrawals prior to the deposited checks clearing.

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    © All Rights Reserved
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    G.R No. 156940 Ledesma-Orencio

    Uploaded by

    Jashim Usop
    83 views1 page
    The document summarizes a court case between a businessman, Vicente Henry Tan, and Associated Bank regarding checks deposited and withdrawn from Tan's account. Tan deposited postdated checks totaling PHP 101,000 that were cleared by the bank, allowing Tan to withdraw PHP 240,000. However, several checks Tan wrote from his account later bounced due to insufficient funds. While the bank argued it had the right to debit Tan's account, the court ruled in favor of Tan, ordering the bank to pay PHP 100,000 in moral damages, PHP 75,000 in exemplary damages, and PHP 25,000 in attorney's fees for the bank's negligence in allowing withdrawals prior to the deposited checks clearing.

    Original Title

    G.R NO. 156940 LEDESMA-ORENCIO

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    The document summarizes a court case between a businessman, Vicente Henry Tan, and Associated Bank regarding checks deposited and withdrawn from Tan's account. Tan deposited postdated checks totaling PHP 101,000 that were cleared by the bank, allowing Tan to withdraw PHP 240,000. However, several checks Tan wrote from his account later bounced due to insufficient funds. While the bank argued it had the right to debit Tan's account, the court ruled in favor of Tan, ordering the bank to pay PHP 100,000 in moral damages, PHP 75,000 in exemplary damages, and PHP 25,000 in attorney's fees for the bank's negligence in allowing withdrawals prior to the deposited checks clearing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    83 views1 page

    G.R No. 156940 Ledesma-Orencio

    Uploaded by

    Jashim Usop
    The document summarizes a court case between a businessman, Vicente Henry Tan, and Associated Bank regarding checks deposited and withdrawn from Tan's account. Tan deposited postdated checks totaling PHP 101,000 that were cleared by the bank, allowing Tan to withdraw PHP 240,000. However, several checks Tan wrote from his account later bounced due to insufficient funds. While the bank argued it had the right to debit Tan's account, the court ruled in favor of Tan, ordering the bank to pay PHP 100,000 in moral damages, PHP 75,000 in exemplary damages, and PHP 25,000 in attorney's fees for the bank's negligence in allowing withdrawals prior to the deposited checks clearing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    G. R. No.

    156940
    December 14, 2004

    ASSOCIATED BANK (Now WESTMONT BANK), petitioner


    VS. VICENTE HENRY TAN, respondent

    Vicente Henry Tan a businessman & regular depositor-creditor of Associated

    FACTS Bank. September 1990, he deposited postdated check on the said bank P101, 000.
    October 19, 1990 check was entered into bank of records total of 297,000.
    Allegedly, upon advice and instructions of bank 101,000 was cleared and back up
    by sufficient funds then Tan withdraw 240,000. And deposited an amount of 50,000
    and issued several check to his business partners and receive feedback that
    checked issued bounce insufficient funds

    Tan has sufficient funds to pay subject check


    but after what happened his good records Bank filed a motion to dismiss but denied for
    ruined, suffered embarrassment , etc and lack of merit. And argued that it has all the
    filed damages .And ordered the petitioner to right to debit the account of the respondent
    pay him moral damages worth 1,000,000, for dishonored check deposited which
    loss profits 250,000, attorney’s fees plus 25% withdrawn by him prior to its clearing.
    including 1,000 per court appearance. Therefore bank ordered respondent to pay a
    total amount of 1,007,500 of damages.

    RULING:

    October 10, 1996 Associated Bank is now Westmont Bank. December 3,


    1996 court’s decision is in favour of respondent and against the petitioner,
    ordering to pay 100,000 for moral damages, 75,000 exemplary damages and
    25,000 for other fees.
    Whether or not petitioner, acting as

    ISSUE collecting bank has the right to debit the


    account of its client for check deposit which
    : dishonored by drawee bank.

    RULLIN Because of the banks


    negligence the
    respondent was
    CA ruled that banks should not have the rewarded, 100,000 for
    authorized with the withdrawal of the deposited
    moral damages, 75,000
    check prior to its clearing. Bank violated its own
    policy contrary to its obligation to officially for exemplary damages
    inform the respondent about the status of his and 25,000 for attorney’s
    account and treat client’s account with fees.
    meticulous care.

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