CITIBANK, N.A. (Formerly FirstNational City Bank) and INVESTORS FINANCE COR!

ORATION, doin" #$siness $nder t%e name and style o& FNCB Finan'e, Petitioners, - versus-

*.R. No. +,-+./ Present: PANGANIBAN, C.J. Chairperson, YNARES-SANTIAGO, AUSTRIA-MARTINE , CA!!E"O, SR., and C#ICO-NA ARIO, JJ.

Pro$%&'ated: (O)ESTA R. SABENIANO, Respondent. O(to)er *+, ,--+ .- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -. /ECISION

C#ICO-NA ARIO, J.: Be0ore this Co%rt is a Petition 0or Re1ie2 on Certiorari,3*4 %nder R%&e 56 o0 the Re1ised R%&es o0 Co%rt, o0 the /e(ision 3,4 o0 the Co%rt o0 Appea&s in CA-G.R. C7 No. 6*89-, dated ,+ Mar(h ,--,, and the Reso&%tion, 394 dated ,- No1e$)er ,--,, o0 the sa$e (o%rt 2hi(h, a&tho%'h $odi0:in' its ear&ier /e(ision, sti&& denied 0or the $ost part the Motion 0or Re(onsideration o0 herein petitioners. Petitioner Citi)an;, N.A. <0or$er&: ;no2n as the =irst Nationa& Cit: Ban;> is a )an;in' (orporation d%&: a%thori?ed and [Link]' %nder the &a2s o0 the United States o0 A$eri(a and &i(ensed to do (o$$er(ia& )an;in' a(ti1ities and per0or$ tr%st 0%n(tions in the Phi&ippines. Petitioner In1estor@s =inan(e Corporation, 2hi(h did )%siness %nder the na$e and st:&e o0 =NCB =inan(e, 2as an a00i&iate (o$pan: o0 petitioner Citi)an;, spe(i0i(a&&: hand&in' $one: $ar;et p&a(e$ents 0or its (&ients. It is no2, ): 1irt%e o0 a $er'er, doin' )%siness as part o0 its s%((essor-in-interest, BPI Card =inan(e Corporation. #o2e1er, so as to (onsistent&: esta)&ish its identit: in the Petition at )ar, the said petitioner sha&& sti&& )e re0erred to herein as =NCB =inan(e. 354 Respondent Modesta R. Sa)eniano 2as a (&ient o0 )oth petitioners Citi)an; and =NCB =inan(e. Re'retta)&:, the )%siness re&ations a$on' the parties s%)seA%ent&: 2ent a2r:. On B A%'%st *8B6, respondent 0i&ed a Co$p&aint 364 a'ainst petitioners, do(;eted as Ci1i& Case No. **99+, )e0ore the Re'iona& Tria& Co%rt <RTC> o0 Ma;ati Cit:. Respondent (&ai$ed to ha1e s%)stantia& deposits and $one: $ar;et p&a(e$ents 2ith the petitioners, as 2e&& as $one: $ar;et p&a(e$ents 2ith the A:a&a In1est$ent and /e1e&op$ent Corporation <AI/C>, the pro(eeds o0 2hi(h 2ere s%pposed&: deposited a%to$ati(a&&: and dire(t&: to respondent@s a((o%nts 2ith petitioner Citi)an;. Respondent a&&e'ed that petitioners re0%sed to ret%rn her deposits and the pro(eeds o0 her $one: $ar;et p&a(e$ents despite her repeated de$ands, th%s, (o$pe&&in' respondent to 0i&e Ci1i& Case No. **99+ a'ainst petitioners 0or CA((o%ntin', S%$ o0 Mone: and /a$a'es.D Respondent e1ent%a&&: 0i&ed an A$ended Co$p&aint3+4 on 8 O(to)er *8B6 to in(&%de additiona& (&ai$s to deposits and $one: $ar;et p&a(e$ents inad1ertent&: &e0t o%t 0ro$ her ori'ina& Co$p&aint.

In their Eoint Ans2er 3F4 and Ans2er to A$ended Co$p&aint, 3B4 0i&ed on *, Septe$)er *8B6 and + No1e$)er *8B6, respe(ti1e&:, petitioners ad$itted that respondent had deposits and $one: $ar;et p&a(e$ents 2ith the$, in(&%din' do&&ar a((o%nts in the Citi)an; )ran(h in Gene1a, S2it?er&and <Citi)an;Gene1a>. Petitioners 0%rther a&&e'ed that the respondent &ater o)tained se1era& &oans 0ro$ petitioner Citi)an;, 0or 2hi(h she e.e(%ted Pro$issor: Notes <PNs>, and se(%red ): <a> a /e(&aration o0 P&ed'e o0 her do&&ar a((o%nts in Citi)an;-Gene1a, and <)> /eeds o0 Assi'n$ent o0 her $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e. Ghen respondent 0ai&ed to pa: her &oans despite repeated de$ands ): petitioner Citi)an;, the &atter [Link](ised its ri'ht to o00-set or (o$pensate respondent@s o%tstandin' &oans 2ith her deposits and $one: $ar;et p&a(e$ents, p%rs%ant to the /e(&aration o0 P&ed'e and the /eeds o0 Assi'n$ent e.e(%ted ): respondent in its 0a1or. Petitioner Citi)an; s%pposed&: in0or$ed respondent Sa)eniano o0 the 0ore'oin' (o$pensation thro%'h &etters, dated ,B Septe$)er *8F8 and 9* O(to)er *8F8. Petitioners 2ere there0ore s%rprised 2hen si. :ears &ater, in *8B6, respondent and her (o%nse& $ade repeated reA%ests 0or the 2ithdra2a& o0 respondent@s deposits and $one: $ar;et p&a(e$ents 2ith petitioner Citi)an;, in(&%din' her do&&ar a((o%nts 2ith Citi)an;-Gene1a and her $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e. Th%s, petitioners pra:ed 0or the dis$issa& o0 the Co$p&aint and 0or the a2ard o0 a(t%a&, $ora&, and e.e$p&ar: da$a'es, and attorne:@s 0ees. Ghen the parties 0ai&ed to rea(h a (o$pro$ise d%rin' the pre-tria& hearin', tria& proper ens%ed and the parties pro(eeded 2ith the presentation o0 their respe(ti1e e1iden(e. Ten :ears a0ter the 0i&in' o0 the Co$p&aint on B A%'%st *8B6, a /e(ision3*-4 2as 0ina&&: rendered in Ci1i& Case No. **99+ on ,5 A%'%st *886 ): the 0o%rth "%d'e3**42ho hand&ed the said (ase, "%d'e Man%e& /. 7i(torio, the dispositi1e portion o0 2hi(h reads H
384

G#ERE=ORE, in 1ie2 o0 a&& the 0ore'oin', de(ision is here): rendered as 0o&&o2s: <*> /e(&arin' as i&&e'a&, n%&& and 1oid the seto00 e00e(ted ): the de0endant Ban; 3petitioner Citi)an;4 o0 p&ainti00@s 3respondent Sa)eniano4 do&&ar deposit 2ith Citi)an;, S2it?er&and, in the a$o%nt o0 USI*58,+9,.88, and orderin' the said de0endant 3petitioner Citi)an;4 to re0%nd the said a$o%nt to the p&ainti00 2ith &e'a& interest at the rate o0 t2e&1e per(ent <*,J> per ann%$, (o$po%nded :ear&:, 0ro$ 9* O(to)er *8F8 %nti& 0%&&: paid, or its peso eA%i1a&ent at the ti$e o0 pa:$entK <,> /e(&arin' the p&ainti00 3respondent Sa)eniano4 inde)ted to the de0endant Ban; 3petitioner Citi)an;4 in the a$o%nt o0 P*,-+8,B5F.5- as o0 6 Septe$)er *8F8 and orderin' the p&ainti00 3respondent Sa)eniano4 to pa: said a$o%nt, ho2e1er, there sha&& )e no interest and pena&t: (har'es 0ro$ the ti$e the i&&e'a& seto00 2as e00e(ted on 9* O(to)er *8F8K <9> /is$issin' a&& other (&ai$s interposed ): the parties a'ainst ea(h other. Costs a'ainst the de0endant Ban;. A&& the parties appea&ed the 0ore'oin' /e(ision o0 the RTC to the Co%rt o0 Appea&s, do(;eted as CA-G.R. C7 No. 6*89-. Respondent A%estioned the 0indin's o0 the RTC that she 2as sti&& inde)ted to petitioner Citi)an;, as 2e&& as the 0ai&%re o0 the and (o%nter(&ai$s

RTC to order petitioners to render an a((o%ntin' o0 respondent@s deposits and $one: $ar;et p&a(e$ents 2ith the$. On the other hand, petitioners ar'%ed that petitioner Citi)an; 1a&id&: (o$pensated respondent@s o%tstandin' &oans 2ith her do&&ar a((o%nts 2ith Citi)an;-Gene1a, in a((ordan(e 2ith the /e(&aration o0 P&ed'e she e.e(%ted in its 0a1or. Petitioners a&so a&&e'ed that the RTC erred in not de(&arin' respondent &ia)&e 0or da$a'es and interest. On ,+ Mar(h ,--,, the Co%rt o0 Appea&s rendered its /e(ision 3*,4 a00ir$in' 2ith $odi0i(ation the RTC /e(ision in Ci1i& Case No. **99+, dated ,5 A%'%st *886, and r%&in' entire&: in 0a1or o0 respondent in this 2ise H Ghere0ore, pre$ises (onsidered, the assai&ed ,5 A%'%st *886 Decision o0 the (o%rt a quo is here): AFFIR(E) 0it% (O)IFICATION, as 0o&&o2s: *. /e(&arin' as i&&e'a&, n%&& and 1oid the set-o00 e00e(ted ): the de0endant-appe&&ant Ban; o0 the p&ainti00-appe&&ant@s do&&ar deposit 2ith Citi)an;, S2it?er&and, in the a$o%nt o0 USI*58,+9,.88, and orderin' de0endant-appe&&ant Citi)an; to re0%nd the said a$o%nt to the p&ainti00-appe&&ant 2ith &e'a& interest at the rate o0 t2e&1e per(ent <*,J> per ann%$, (o$po%nded :ear&:, 0ro$ 9* O(to)er *8F8 %nti& 0%&&: paid, or its peso eA%i1a&ent at the ti$e o0 pa:$entK ,. As de0endant-appe&&ant Citi)an; 0ai&ed to esta)&ish ): (o$petent e1iden(e the a&&e'ed inde)tedness o0 p&ainti00appe&&ant, the set-o00 o0 P*,-+8,B5F.5- in the a((o%nt o0 Ms. Sa)eniano is here): de(&ared as 2itho%t &e'a& and 0a(t%a& )asisK 9. As de0endants-appe&&ants 0ai&ed to a((o%nt the 0o&&o2in' p&ainti00-appe&&ant@s $one: $ar;et p&a(e$ents, sa1in's a((o%nt and (%rrent a((o%nts, the 0or$er is here): ordered to ret%rn the sa$e, in a((ordan(e 2ith the ter$s and (onditions a'reed %pon ): the (ontendin' parties as e1iden(ed ): the (erti0i(ates o0 in1est$ents, to 2it: <i> Citi)an; NNPN Seria& No. -,996+ <Can(e&s and S%persedes NNPN No. ,,6,+> iss%ed on *F Mar(h *8FF, P9*B,B8F.95 2ith *5.6-J interest p.a.K <ii> Citi)an; NNPN Seria& No. ,996F <Can(e&s and S%persedes NNPN No. ,,6,B> iss%ed on *F Mar(h *8FF, P,-9,*6-.-- 2ith *5.6interest p.a.K <iii> =NCB NNPN Seria& No. -6F6F <Can(e&s and S%persedes NNPN No. -586,>, iss%ed on -, "%ne *8FF, P6--,---.-- 2ith *FJ interest p.a.K <i1> =NCB NNPN Seria& No. -6F6B <Can(e&s and S%persedes NNPN No. -58+,>, iss%ed on -, "%ne *8FF, P6--,---.-- 2ith *FJ interest per ann%$K

<1> The T2o Mi&&ion <P,,---,---.--> $one: $ar;et p&a(e$ents o0 Ms. Sa)eniano 2ith the A:a&a In1est$ent L /e1e&op$ent Corporation <AI/C> 2ith &e'a& interest at the rate o0 t2e&1e per(ent <*,J> per ann%$ (o$po%nded :ear&:, 0ro$ 9- Septe$)er *8F+ %nti& 0%&&: paidK 5. Orderin' de0endants-appe&&ants to Eoint&: and se1era&&: pa: the p&ainti00-appe&&ant the s%$ o0 =I7E #UN/RE/ T#OUSAN/ PESOS <P6--,---.--> ): 2a: o0 $ora& da$a'es, =I7E #UN/RE/ T#OUSAN/ PESOS <P6--,---.--> as e.e$p&ar: da$a'es, and ONE #UN/RE/ T#OUSAN/ PESOS <P*--,---.--> as attorne:@s 0ees. Apparent&:, the parties to the (ase, na$e&:, the respondent, on one hand, and the petitioners, on the other, $ade separate atte$pts to )rin' the a0ore$entioned /e(ision o0 the Co%rt o0 Appea&s, dated ,+ Mar(h ,--,, )e0ore this Co%rt 0or re1ie2. G.R. No. *6,8B6 Respondent no &on'er so%'ht a re(onsideration o0 the /e(ision o0 the Co%rt o0 Appea&s in CA-G.R. C7 No. 6*89-, dated ,+ Mar(h ,--,, and instead, 0i&ed i$$ediate&: 2ith this Co%rt on 9 Ma: ,--, a Motion 0or [Link] o0 Ti$e to =i&e a Petition 0or Re1ie2,3*94 2hi(h, a0ter pa:$ent o0 the do(;et and other &a20%& 0ees, 2as assi'ned the do(;et n%$)er G.R. No. *6,8B6. In the said Motion, respondent a&&e'ed that she re(ei1ed a (op: o0 the assai&ed Co%rt o0 Appea&s /e(ision on *B Apri& ,--, and, th%s, had *6 da:s there0ro$ or %nti& 9 Ma: ,--, 2ithin 2hi(h to 0i&e her Petition 0or Re1ie2. Sin(e she in0or$ed her (o%nse& o0 her desire to p%rs%e an appea& o0 the Co%rt o0 Appea&s /e(ision on&: on ,8 Apri& ,--,, her (o%nse& neither had eno%'h ti$e to 0i&e a $otion 0or re(onsideration o0 the said /e(ision 2ith the Co%rt o0 Appea&s, nor a Petition 0or Certiorari 2ith this Co%rt. Yet, the Motion 0ai&ed to state the e.a(t [Link] period respondent 2as reA%estin' 0or. Sin(e this Co%rt did not a(t %pon respondent@s Motion 0or [Link] o0 Ti$e to 0i&e her Petition 0or Re1ie2, then the period 0or appea& (ontin%ed to r%n and sti&& [Link] on 9 Ma: ,--,.3*54 Respondent 0ai&ed to 0i&e an: Petition 0or Re1ie2 2ithin the pres(ri)ed period 0or appea& and, hen(e, this Co%rt iss%ed a Reso&%tion, 3*64 dated *9 No1e$)er ,--,, in 2hi(h it prono%n(ed that H G.R. No. 152985 (Modesta R. Sabeniano vs. Court of Appeals, et al. . H It appearin' that petitioner 0ai&ed to 0i&e the intended petition 0or re1ie2 on (ertiorari 2ithin the period 2hi(h [Link] on Ma: 9, ,--,, the Co%rt Reso&1es to !"C#AR" $%&S CAS" $"RM&NA$"! and !&R"C$ the /i1ision C&er; o0 Co%rt to &N'(RM the parties that the E%d'$ent so%'ht to )e re1ie2ed has )e(o$e 0ina& and e.e(%tor:. The said Reso&%tion 2as d%&: re(orded in the Boo; o0 Entries o0 "%d'$ents on 9 "an%ar: ,--9. G.R. No. *6+*9, Mean2hi&e, petitioners 0i&ed 2ith the Co%rt o0 Appea&s a Motion 0or Re(onsideration o0 its /e(ision in CA-G.R. C7 No. 6*89-, dated ,+ Mar(h

,--,. A(tin' %pon the said Motion, the Co%rt o0 Appea&s iss%ed the Reso&%tion, 3*+4 dated ,- No1e$)er ,--,, $odi0:in' its /e(ision o0 ,+ Mar(h ,--,, as 0o&&o2s H 12EREFORE, pre$ises (onsidered, the instant Motion for Reconsideration is !ARTIA334 *RANTE) as S%)-para'raph <7> para'raph 9 o0 the assai&ed Decisionsdispositi1e portion is here): ordered )E3ETE). The (ha&&en'ed ,+ Mar(h ,--, Decision o0 the Co%rt is AFFIR(E) 2ith (O)IFICATION. Assai&in' the /e(ision and Reso&%tion o0 the Co%rt o0 Appea&s in CA-G.R. C7 No. 6*89-, dated ,+ Mar(h ,--, and ,- No1e$)er ,--,, respe(ti1e&:, petitioners 0i&ed the present Petition, do(;eted as G.R. No. *6+*9,. The Petition 2as initia&&: denied3*F4 ): this Co%rt 0or 0ai&%re o0 the petitioners to atta(h thereto a Certi0i(ation a'ainst =or%$ Shoppin'. #o2e1er, %pon petitioners@ Motion and (o$p&ian(e 2ith the reA%ire$ents, this Co%rt reso&1ed3*B4 to reinstate the Petition. The Petition presented 0o%rteen <*5> assi'n$ents o0 errors a&&e'ed&: (o$$itted ): the Co%rt o0 Appea&s in its /e(ision, dated ,+ Mar(h ,--,, in1o&1in' )oth A%estions o0 0a(t and A%estions o0 &a2 2hi(h this Co%rt, 0or the sa;e o0 [Link](:, dis(%sses Eoint&:, 2hene1er possi)&e, in the s%((eedin' para'raphs. I $)e Resolution of t)is Court, dated 1* Nove+ber 2,,2, in G.R. No. 152985, de-larin. t)e !e-ision of t)e Court of Appeals, dated 2/ Mar-) 2,,2, final and e0e-utor1, pertains to respondent Sabeniano alone. Be0ore pro(eedin' to a dis(%ssion o0 the $erits o0 the instant Petition, this Co%rt 2ishes to address 0irst the ar'%$ent, persistent&: ad1an(ed ): respondent in her p&eadin's on re(ord, as 2e&& as her n%$ero%s persona& and %no00i(ia& &etters to this Co%rt 2hi(h 2ere no &on'er $ade part o0 the re(ord, that the /e(ision o0 the Co%rt o0 Appea&s in CA-G.R. C7 No. 6*89-, dated ,+ Mar(h ,--,, had a&read: )e(o$e 0ina& and e.e(%tor: ): 1irt%e o0 the Reso&%tion o0 this Co%rt in G.R. No. *6,8B6, dated *9 No1e$)er ,--,. G.R. No. *6,8B6 2as the do(;et n%$)er assi'ned ): this Co%rt to respondent@s Motion 0or [Link] o0 Ti$e to =i&e a Petition 0or Re1ie2. Respondent, tho%'h, did not 0i&e her s%pposed Petition. Th%s, a0ter the &apse o0 the pres(ri)ed period 0or the 0i&in' o0 the Petition, this Co%rt iss%ed the Reso&%tion, dated *9 No1e$)er ,--,, de(&arin' the /e(ision o0 the Co%rt o0 Appea&s, dated ,+ Mar(h ,--,, 0ina& and e.e(%tor:. It sho%&d )e pointed o%t, ho2e1er, that the Reso&%tion, dated *9 No1e$)er ,--,, re0erred on&: to G.R. No. *6,8B6, respondent@s appea&, 2hi(h she 0ai&ed to per0e(t thro%'h the 0i&in' o0 a Petition 0or Re1ie2 2ithin the pres(ri)ed period. The de(&aration o0 this Co%rt in the sa$e Reso&%tion 2o%&d )ind respondent so&e&:, and not petitioners 2hi(h 0i&ed their o2n separate appea& )e0ore this Co%rt, do(;eted as G.R. No. *6+*9,, the Petition at )ar. This 2o%&d $ean that respondent, on her part, sho%&d )e )o%nd ): the 0indin's o0 0a(t and &a2 o0 the Co%rt o0 Appea&s, in(&%din' the $onetar: a$o%nts (onseA%ent&: a2arded to her ): the

appe&&ate (o%rt in its /e(ision, dated ,+ Mar(h ,--,K and she (an no &on'er re0%te or assai& an: part thereo0. 3*84 This Co%rt a&read: e.p&ained the $atter to respondent 2hen it iss%ed a Reso&%tion3,-4 in G.R. No. *6+*9,, dated , =e)r%ar: ,--5, 2hi(h addressed her Ur'ent Motion 0or the Re&ease o0 the /e(ision 2ith the I$p&e$entation o0 the Entr: o0 "%d'$ent in the 0o&&o2in' $anner H 3A4(tin' on Citi)an;@s and =NCB Reconsideration, 2e reso&1ed to 'rant the petition and reA%ire Sa)eniano to 0i&e a o%r Resolution o0 "%ne ,9, ,--9. Sa)eniano "%&: *F, ,--9 to 2hi(h Citi)an; and a Reply dated A%'%st ,-, ,--9. =inan(e@s Motion for $otion, reinstate the (o$$ent thereto in 0i&ed a Comment dated =NCB =inan(e 0i&ed

=ro$ the 0ore'oin', it is (&ear that Sa)eniano had ;no2&ed'e o0, and in 0a(t parti(ipated in, the pro(eedin's in G.R. No. *6+*9,. She (annot 0ei'n i'noran(e o0 the pro(eedin's therein and (&ai$ that the Decision o0 the Co%rt o0 Appea&s has )e(o$e 0ina& and e.e(%tor:. More pre(ise&:, the Decision )e(a$e 0ina& and e.e(%tor: onl1 2it) [Link] to Sabeniano in 1ie2 o0 her 0ai&%re to 0i&e a petition 0or re1ie2 2ithin the [Link] period 'ranted ): the Co%rt, and not to Citi)an; and =NCB =inan(e 2hose Petition for Review 2as d%&: reinstated and is no2 s%)$itted 0or de(ision. A((ordin'&:, the instant Urgent Motion is here): /ENIE/. <E$phasis s%pp&ied.> To s%stain the ar'%$ent o0 respondent 2o%&d res%&t in an %nE%st and in(on'r%o%s sit%ation 2herein one part: $a: 0r%strate the e00orts o0 the opposin' part: to appea& the (ase ): $ere&: 0i&in' 2ith this Co%rt a Motion 0or [Link] o0 Ti$e to =i&e a Petition 0or Re1ie2, ahead o0 the opposin' part:, then not a(t%a&&: 0i&in' the intended Petition.3,*4 The part: 2ho 0ai&s to 0i&e its intended Petition 2ithin the re'&e$entar: or [Link] period sho%&d so&e&: )ear the (onseA%en(es o0 s%(h 0ai&%re. Respondent Sabeniano did not -o++it foru+ s)oppin.. Another iss%e that does not dire(t&: in1o&1e the $erits o0 the present Petition, )%t raised ): petitioners, is 2hether respondent sho%&d )e he&d &ia)&e 0or 0or%$ shoppin'. Petitioners (ontend that respondent (o$$itted 0or%$ shoppin' on the )asis o0 the 0o&&o2in' 0a(ts: Ghi&e petitioners@ Motion 0or Re(onsideration o0 the /e(ision in CA-G.R. C7 No. 6*89-, dated ,+ Mar(h ,--,, 2as sti&& pendin' )e0ore the Co%rt o0 Appea&s, respondent a&read: 0i&ed 2ith this Co%rt on 9 Ma: ,--, her Motion 0or [Link] o0 Ti$e to =i&e a Petition 0or Re1ie2 o0 the sa$e Co%rt o0 Appea&s /e(ision, do(;eted as G.R. No. *6,8B6. Therea0ter, respondent (ontin%ed to parti(ipate in the pro(eedin's )e0ore the Co%rt o0 Appea&s in CA-G.R. C7 No. 6*89- ): 0i&in' her Co$$ent, dated *F "%&: ,--,, to petitioners@ Motion 0or Re(onsiderationK and a ReEoinder, dated ,9 Septe$)er ,--,, to petitioners@ Rep&:. Th%s, petitioners ar'%e that ): see;in' re&ie0 (on(%rrent&: 0ro$ this Co%rt and the Co%rt o0 Appea&s, respondent is %ndenia)&: '%i&t: o0 0or%$ shoppin', i0 not indire(t (onte$pt.

This Co%rt, ho2e1er, 0inds no s%00i(ient )asis to ho&d respondent &ia)&e 0or 0or%$ shoppin'. =or%$ shoppin' has )een de0ined as the 0i&in' o0 t2o or $ore s%its in1o&1in' the sa$e parties 0or the sa$e (a%se o0 a(tion, either si$%&taneo%s&: or s%((essi1e&:, 0or the p%rpose o0 o)tainin' a 0a1ora)&e E%d'$ent. 3,,4 The test 0or deter$inin' 0or%$ shoppin' is 2hether in the t2o <or $ore> (ases pendin', there is an identit: o0 parties, ri'hts or (a%ses o0 a(tion, and re&ie0 so%'ht. 3,94 To '%ard a'ainst this dep&ora)&e pra(ti(e, R%&e F, Se(tion 6 o0 the re1ised R%&es o0 Co%rt i$poses the 0o&&o2in' reA%ire$ent H SEC. 6. Certification against forum s opping. H The p&ainti00 or prin(ipa& part: sha&& (erti0: %nder oath in the (o$p&aint or other initiator: p&eadin' assertin' a (&ai$ 0or re&ie0, or in a s2orn (erti0i(ation [Link] thereto and si$%&taneo%s&: 0i&ed there2ith: <a> that he has not thereto0ore (o$$en(ed an: a(tion or 0i&ed an: (&ai$ in1o&1in' the sa$e iss%es in an: (o%rt, tri)%na& or A%asiE%di(ia& a'en(: and, to the )est o0 his ;no2&ed'e, no s%(h other a(tion or (&ai$ is pendin' thereinK <)> i0 there is s%(h other pendin' a(tion or (&ai$, a (o$p&ete state$ent o0 the present stat%s thereo0K and <(> i0 he sho%&d therea0ter &earn that the sa$e or si$i&ar a(tion or (&ai$ has )een 0i&ed or is pendin', he sha&& report that 0a(t 2ithin 0i1e <6> da:s there0ro$ to the (o%rt 2herein his a0oresaid (o$p&aint or initiator: p&eadin' has )een 0i&ed. =ai&%re to (o$p&: 2ith the 0ore'oin' reA%ire$ents sha&& not )e (%ra)&e ): $ere a$end$ent o0 the (o$p&aint or other initiator: p&eadin' )%t sha&& )e (a%se 0or the dis$issa& o0 the (ase 2itho%t preE%di(e, %n&ess other2ise pro1ided, %pon $otion and a0ter hearin'. The s%)$ission o0 a 0a&se (erti0i(ation or non-(o$p&ian(e 2ith an: o0 the %nderta;in's therein sha&& (onstit%te indire(t (onte$pt o0 (o%rt, 2itho%t preE%di(e to the (orrespondin' ad$inistrati1e and (ri$ina& a(tions. I0 the a(ts o0 the part: or his (o%nse& (&ear&: (onstit%te 2i&&0%& and de&i)erate 0or%$ shoppin', the sa$e sha&& )e 'ro%nd 0or s%$$ar: dis$issa& 2ith preE%di(e and sha&& (onstit%te dire(t (onte$pt, as 2e&& as (a%se 0or ad$inistrati1e san(tions. A&tho%'h it $a: see$ at 0irst '&an(e that respondent 2as si$%&taneo%s&: see;in' re(o%rse 0ro$ the Co%rt o0 Appea&s and this Co%rt, a (are0%& and (&oser s(r%tin: o0 the detai&s o0 the (ase at )ar 2o%&d re1ea& other2ise. It sho%&d )e re(a&&ed that respondent did nothin' $ore in G.R. No. *6,8B6 than to 0i&e 2ith this Co%rt a Motion 0or [Link] o0 Ti$e 2ithin 2hi(h to 0i&e her Petition 0or Re1ie2. =or %ne.p&ained reasons, respondent 0ai&ed to s%)$it to this Co%rt her intended Petition 2ithin the re'&e$entar: period. ConseA%ent&:, this Co%rt 2as pro$pted to iss%e a Reso&%tion, dated *9 No1e$)er ,--,, de(&arin' G.R. No. *6,8B6 ter$inated, and the therein assai&ed Co%rt o0 Appea&s /e(ision 0ina& and e.e(%tor:. G.R. No. *6,8B6, there0ore, did not pro'ress and respondent@s appea& 2as %nper0e(ted. The Petition 0or Re1ie2 2o%&d (onstit%te the initiator: p&eadin' )e0ore this Co%rt, %pon the ti$e&: 0i&in' o0 2hi(h, the (ase )e0ore this Co%rt (o$$en(esK $%(h in the sa$e 2a: a (ase is initiated ): the 0i&in' o0 a Co$p&aint )e0ore the tria& (o%rt. The Petition 0or Re1ie2 esta)&ishes the identit: o0 parties, ri'hts or (a%ses o0

a(tion, and re&ie0 so%'ht 0ro$ this Co%rt, and 2itho%t s%(h a Petition, there is te(hni(a&&: no (ase )e0ore this Co%rt. The Motion 0i&ed ): respondent see;in' [Link] o0 ti$e 2ithin 2hi(h to 0i&e her Petition 0or Re1ie2 does not ser1e the sa$e p%rpose as the Petition 0or Re1ie2 itse&0. S%(h a Motion $ere&: presents the i$portant dates and the E%sti0i(ation 0or the additiona& ti$e reA%ested 0or, )%t it does not 'o into the detai&s o0 the appea&ed (ase. Githo%t an: parti(%&ar idea as to the assi'n$ents o0 error or the re&ie0 respondent intended to see; 0ro$ this Co%rt, in &i'ht o0 her 0ai&%re to 0i&e her Petition 0or Re1ie2, there is a(t%a&&: no se(ond (ase in1o&1in' the sa$e parties, ri'hts or (a%ses o0 a(tion, and re&ie0 so%'ht, as that in CA-G.R. C7 No. 6*89-. It sho%&d a&so )e noted that the Certi0i(ation a'ainst =or%$ Shoppin' is reA%ired to )e atta(hed to the initiator: p&eadin', 2hi(h, in G.R. No. *6,8B6, sho%&d ha1e )een respondent@s Petition 0or Re1ie2. It is in that Certi0i(ation 2herein respondent (erti0ies, %nder oath, that: <a> she has not (o$$en(ed an: a(tion or 0i&ed an: (&ai$ in1o&1in' the sa$e iss%es in an: (o%rt, tri)%na& or A%asi-E%di(ia& a'en(: and, to the )est o0 her ;no2&ed'e, no s%(h other a(tion or (&ai$ is pendin' thereinK <)> i0 there is s%(h other pendin' a(tion or (&ai$, that she is presentin' a (o$p&ete state$ent o0 the present stat%s thereo0K and <(> i0 she sho%&d therea0ter &earn that the sa$e or si$i&ar a(tion or (&ai$ has )een 0i&ed or is pendin', she sha&& report that 0a(t 2ithin 0i1e da:s there0ro$ to this Co%rt. Githo%t her Petition 0or Re1ie2, respondent had no o)&i'ation to e.e(%te and s%)$it the 0ore'oin' Certi0i(ation a'ainst =or%$ Shoppin'. Th%s, respondent did not 1io&ate R%&e F, Se(tion 6 o0 the Re1ised R%&es o0 Co%rtK neither did she $is&ead this Co%rt as to the penden(: o0 another si$i&ar (ase. !ast&:, the 0a(t a&one that the /e(ision o0 the Co%rt o0 Appea&s, dated ,+ Mar(h ,--,, essentia&&: r%&ed in 0a1or o0 respondent, does not ne(essari&: pre(&%de her 0ro$ appea&in' the sa$e. Granted that s%(h a $o1e is ostensi)&: irrationa&, nonethe&ess, it does not a$o%nt to $a&i(e, )ad 0aith or a)%se o0 the (o%rt pro(esses in the a)sen(e o0 0%rther proo0. A'ain, it sho%&d )e noted that the respondent did not 0i&e her intended Petition 0or Re1ie2. The Petition 0or Re1ie2 2o%&d ha1e presented )e0ore this Co%rt the 'ro%nds 0or respondent@s appea& and her ar'%$ents in s%pport thereo0. Githo%t said Petition, an: reason attri)%ted to the respondent 0or appea&in' the ,+ Mar(h ,--, /e(ision 2o%&d )e 'ro%nded on $ere spe(%&ations, to 2hi(h this Co%rt (annot 'i1e (reden(e. II As an e0-eption to t)e .eneral rule, t)is Court ta3es -o.ni4an-e of 5uestions of fa-t raised in t)e 6etition at bar. It is a&read: a 2e&&-sett&ed r%&e that the E%risdi(tion o0 this Co%rt in (ases )ro%'ht )e0ore it 0ro$ the Co%rt o0 Appea&s ): 1irt%e o0 R%&e 56 o0 the Re1ised R%&es o0 Co%rt is &i$ited to re1ie2in' errors o0 &a2. =indin's o0 0a(t o0 the Co%rt o0 Appea&s are (on(&%si1e %pon this Co%rt. There are, ho2e1er, re(o'ni?ed e.(eptions to the 0ore'oin' r%&e, na$e&:: <*> 2hen the 0indin's are 'ro%nded entire&: on spe(%&ation, s%r$ises, or (onEe(t%resK <,> 2hen the inter0eren(e $ade is $ani0est&: $ista;en, a)s%rd, or i$possi)&eK <9> 2hen there is 'ra1e a)%se o0 dis(retionK <5> 2hen the E%d'$ent is )ased on a $isapprehension o0 0a(tsK <6> 2hen the 0indin's o0 0a(t are (on0&i(tin'K <+> 2hen in $a;in' its 0indin's, the Co%rt o0 Appea&s 2ent )e:ond the iss%es o0 the (ase, or its 0indin's are (ontrar: to the ad$issions o0 )oth the appe&&ant and the appe&&eeK <F> 2hen the 0indin's are (ontrar: to those o0 the tria& (o%rtK <B>

2hen the 0indin's are (on(&%sions 2itho%t (itation o0 spe(i0i( e1iden(e on 2hi(h the: are )asedK <8> 2hen the 0a(ts set 0orth in the petition as 2e&& as in the petitioner@s $ain and rep&: )rie0s are not disp%ted ): the respondentK and <*-> 2hen the 0indin's o0 0a(t are pre$ised on the s%pposed a)sen(e o0 e1iden(e and (ontradi(ted ): the e1iden(e on re(ord.3,54 Se1era& o0 the en%$erated e.(eptions pertain to the Petition at )ar. It is ind%)ita)&e that the Co%rt o0 Appea&s $ade 0a(t%a& 0indin's that are (ontrar: to those o0 the RTC, 3,64 th%s, res%&tin' in its s%)stantia& $odi0i(ation o0 the tria& (o%rt@s /e(ision, and a r%&in' entire&: in 0a1or o0 the respondent. In addition, petitioners in1o;ed in the instant Petition 0or Re1ie2 se1era& e.(eptions that 2o%&d E%sti0: this Co%rt@s re1ie2 o0 the 0a(t%a& 0indin's o0 the Co%rt o0 Appea&s, i.e., the Co%rt o0 Appea&s $ade (on0&i(tin' 0indin's o0 0a(tK 0indin's o0 0a(t 2hi(h 2ent )e:ond the iss%es raised on appea& )e0ore itK as 2e&& as 0indin's o0 0a(t pre$ised on the s%pposed a)sen(e o0 e1iden(e and (ontradi(ted ): the e1iden(e on re(ord. On the )asis o0 the 0ore'oin', this Co%rt sha&& pro(eed to re1ie2in' and ree1a&%atin' the e1iden(e on re(ord in order to sett&e A%estions o0 0a(t raised in the Petition at )ar. $)e fa-t t)at t)e trial 7ud.e 2)o rendered t)e R$C !e-ision in Civil Case No. 11**/, dated 28 [Link] 1995, 2as not t)e sa+e 7ud.e 2)o )eard and tried t)e -ase, does not, b1 itself, render t)e said !e-ision erroneous. The /e(ision in Ci1i& Case No. **99+ 2as rendered $ore than *- :ears 0ro$ the instit%tion o0 the said (ase. In the (o%rse o0 its tria&, the (ase 2as presided o1er ): 0o%r <5> di00erent RTC E%d'es. 3,+4 It 2as "%d'e 7i(torio, the 0o%rth E%d'e assi'ned to the (ase, 2ho 2rote the RTC /e(ision, dated ,5 A%'%st *886. In his /e(ision, 3,F4 "%d'e 7i(torio $ade the 0o&&o2in' 0indin's H A0ter (are0%&&: e1a&%atin' the $ass o0 e1iden(e add%(ed ): the parties, this Co%rt is not in(&ined to )e&ie1e the p&ainti00@s assertion that the pro$issor: notes as 2e&& as the deeds o0 assi'n$ents o0 her =NCB =inan(e $one: $ar;et p&a(e$ents 2ere si$%&ated. The e1iden(e is o1er2he&$in' that the p&ainti00 re(ei1ed the pro(eeds o0 the &oans e1iden(ed ): the 1ario%s pro$issor: notes she had si'ned. Ghat is $ore, there 2as not an iota o0 proo0 sa1e the p&ainti00@s )are testi$on: that she had indeed app&ied 0or &oan 2ith the /e1e&op$ent Ban; o0 the Phi&ippines. More i$portant&:, the t2o deeds o0 assi'n$ent 2ere notari?ed, hen(e the: parta;e the nat%re o0 a p%)&i( do(%$ent. It $a;es $ore than preponderant proo0 to o1ert%rn the e00e(t o0 a notaria& attestation. Copies o0 the deeds o0 assi'n$ents 2ere a(t%a&&: 0i&ed 2ith the Re(ords Mana'e$ent and Ar(hi1es O00i(e. =ina&&:, there 2ere s%00i(ient e1iden(e 2herein the p&ainti00 had ad$itted the [Link](e o0 her &oans 2ith the de0endant Ban; in the tota& a$o%nt o0 P*,8,-,---.-- e.(&%si1e o0 interests and pena&t: (har'es <[Link])its C,BD, C9*D, C9,D, and C99D>.

In 0ine, this Co%rt here): 0inds that the de0endants had esta)&ished the 'en%ineness and d%e e.e(%tion o0 the 1ario%s pro$issor: notes hereto0ore identi0ied as 2e&& as the t2o deeds o0 assi'n$ents o0 the p&ainti00@s $one: $ar;et p&a(e$ents 2ith de0endant =NCB =inan(e, on the stren'th o0 2hi(h the said $one: $ar;et p&a(e$ents 2ere app&ied to partia&&: pa: the p&ainti00@s past d%e o)&i'ation 2ith the de0endant Ban;. Th%s, the tota& s%$ o0 P*,-69,886.B- o0 the p&ainti00@s past d%e o)&i'ation 2as partia&&: o00set ): the said $one: $ar;et p&a(e$ent &ea1in' a )a&an(e o0 P*,-+8,B5F.5- as o0 6 Septe$)er *8F8 <[Link])it C95D>. /isa'reein' in the 0ore'oin' 0indin's, the Co%rt o0 Appea&s stressed, in its /e(ision in CA-G.R. C7 No. 6*89-, dated ,+ Mar(h ,--,, Cthat the ponente o0 the herein assai&ed Decision is not the Presidin' "%d'e 2ho heard and tried the (ase.D3,B4 This )rin's %s to the A%estion o0 2hether the 0a(t a&one that the RTC /e(ision 2as rendered ): a E%d'e other than the E%d'e 2ho a(t%a&&: heard and tried the (ase is s%00i(ient E%sti0i(ation 0or the appe&&ate (o%rt to disre'ard or set aside the 0indin's in the /e(ision o0 the (o%rt a quoM This Co%rt r%&es in the ne'ati1e. Ghat deser1es stressin' is that, in this E%risdi(tion, there [Link] a disp%ta)&e pres%$ption that the RTC /e(ision 2as rendered ): the E%d'e in the re'%&ar per0or$an(e o0 his o00i(ia& d%ties. Ghi&e the said pres%$ption is on&: disp%ta)&e, it is satis0a(tor: %n&ess (ontradi(ted or o1er(a$e ): other e1iden(e. 3,84 En(o$passed in this pres%$ption o0 re'%&arit: is the pres%$ption that the RTC E%d'e, in reso&1in' the (ase and dra0tin' his /e(ision, re1ie2ed, e1a&%ated, and 2ei'hed a&& the e1iden(e on re(ord. That the said RTC E%d'e is not the sa$e E%d'e 2ho heard the (ase and re(ei1ed the e1iden(e is o0 &itt&e (onseA%en(e 2hen the re(ords and trans(ripts o0 steno'raphi( notes <TSNs> are (o$p&ete and a1ai&a)&e 0or (onsideration ): the 0or$er. In People v. !a"men,39-4 this Co%rt a&read: e&%(idated its position on s%(h an iss%e H A((%sed-appe&&ant $a;es an iss%e o0 the 0a(t that the E%d'e 2ho penned the de(ision 2as not the E%d'e 2ho heard and tried the (ase and (on(&%des there0ro$ that the 0indin's o0 the 0or$er are erroneo%s. A((%sed-appe&&ant@s ar'%$ent does not $erit a &en'th: dis(%ssion. It is 2e&&-sett&ed that the de(ision o0 a E%d'e 2ho did not tr: the (ase is not ): that reason a&one erroneo%s. It is tr%e that the E%d'e 2ho %&ti$ate&: de(ided the (ase had not heard the (ontro1ers: at a&&, the tria& ha1in' )een (ond%(ted ): then "%d'e E$i&io !. Po&i', 2ho 2as inde0inite&: s%spended ): this Co%rt. Nonethe&ess, the trans(ripts o0 steno'raphi( notes ta;en d%rin' the tria& 2ere (o$p&ete and 2ere pres%$a)&: e.a$ined and st%died ): "%d'e Ba'%i&at )e0ore he rendered his de(ision. It is not %n%s%a& 0or a E%d'e 2ho did not tr: a (ase to de(ide it on the )asis o0 the re(ord. The 0a(t that he did not ha1e the opport%nit: to o)ser1e the de$eanor o0 the 2itnesses d%rin' the tria& )%t $ere&: re&ied on the trans(ript o0 their testi$onies does not 0or that reason a&one render the E%d'$ent erroneo%s.

<People vs. Jaymalin, ,*5 SCRA +B6, +8, 3*88,4> A&tho%'h it is tr%e that the E%d'e 2ho heard the 2itnesses testi0: is in a )etter position to o)ser1e the 2itnesses on the stand and deter$ine ): their de$eanor 2hether the: are te&&in' the tr%th or $o%thin' 0a&sehood, it does not ne(essari&: 0o&&o2 that a E%d'e 2ho 2as not present d%rin' the tria& (annot render a 1a&id de(ision sin(e he (an re&: on the trans(ript o0 steno'raphi( notes ta;en d%rin' the tria& as )asis o0 his de(ision. A((%sed-appe&&ant@s (ontention that the tria& E%d'e did not ha1e the opport%nit: to o)ser1e the (ond%(t and de$eanor o0 the 2itnesses sin(e he 2as not the sa$e E%d'e 2ho (ond%(ted the hearin' is a&so %ntena)&e. Ghi&e it is tr%e that the tria& E%d'e 2ho (ond%(ted the hearin' 2o%&d )e in a )etter position to as(ertain the tr%th and 0a&sit: o0 the testi$onies o0 the 2itnesses, it does not ne(essari&: 0o&&o2 that a E%d'e 2ho 2as not present d%rin' the tria& (annot render a 1a&id and E%st de(ision sin(e the &atter (an a&so re&: on the trans(ri)ed steno'raphi( notes ta;en d%rin' the tria& as the )asis o0 his de(ision. <People vs. De Pa", ,*, SCRA 6+, +9 3*88,4> At an: rate, the test to deter$ine the 1a&%e o0 the testi$on: o0 the 2itness is 2hether or not s%(h is in (on0or$it: 2ith ;no2&ed'e and (onsistent 2ith the [Link](e o0 $an;ind < People vs. Morre, ,*F SCRA ,*8 3*8894>. =%rther, the (redi)i&it: o0 2itnesses (an a&so )e assessed on the )asis o0 the s%)stan(e o0 their testi$on: and the s%rro%ndin' (ir(%$stan(es < People v. !on"ales, ,*- SCRA 55 3*88,4>. A (riti(a& e1a&%ation o0 the testi$on: o0 the prose(%tion 2itnesses re1ea&s that their testi$on: a((ords 2ith the a0ore$entioned tests, and (arries 2ith it the rin' o0 tr%th end per0or(e, $%st )e 'i1en 0%&& 2ei'ht and (redit. Irre0ra'a)&:, ): reason a&one that the E%d'e 2ho penned the RTC /e(ision 2as not the sa$e E%d'e 2ho heard the (ase and re(ei1ed the e1iden(e therein 2o%&d not render the 0indin's in the said /e(ision erroneo%s and %nre&ia)&e. Ghi&e the (ond%(t and de$eanor o0 2itnesses $a: s2a: a tria& (o%rt E%d'e in de(idin' a (ase, it is not, and sho%&d not )e, his on&: (onsideration. E1en $ore 1ita& 0or the tria& (o%rt E%d'e@s de(ision are the (ontents and s%)stan(e o0 the 2itnesses@ testi$onies, as )orne o%t ): the TSNs, as 2e&& as the o)Ee(t and do(%$entar: e1iden(e s%)$itted and $ade part o0 the re(ords o0 the (ase.

Sin(e the /e(ision o0 the Co%rt o0 Appea&s in CA-G.R. C7 No. 6*89-, dated ,+ Mar(h ,--,, has )e(o$e 0ina& and e.e(%tor: as to the respondent, d%e to her 0ai&%re to interpose an appea& there0ro$ 2ithin the re'&e$entar: period, she is a&read: )o%nd ): the 0a(t%a& 0indin's in the said /e(ision. !i;e2ise, respondent@s 0ai&%re to 0i&e, 2ithin the re'&e$entar: period, a Motion 0or Re(onsideration or an appea& o0 the Reso&%tion o0 the Co%rt o0 Appea&s in the sa$e (ase, dated ,No1e$)er ,--,, 2hi(h $odi0ied its ear&ier /e(ision ): de&etin' para'raph 9<1> o0 its dispositi1e portion, orderin' petitioners to ret%rn to respondent the pro(eeds o0 her $one: $ar;et p&a(e$ent 2ith AI/C, sha&& a&read: )ar her 0ro$ A%estionin' s%(h $odi0i(ation )e0ore this Co%rt. Th%s, 2hat is 0or re1ie2 )e0ore this Co%rt is the /e(ision o0 the Co%rt o0 Appea&s, dated ,+ Mar(h ,--,, as $odi0ied ): the Reso&%tion o0 the sa$e (o%rt, dated ,- No1e$)er ,--,. Respondent a&&e'ed that she had se1era& deposits and $one: $ar;et p&a(e$ents 2ith petitioners. These deposits and $one: $ar;et p&a(e$ents, as deter$ined ): the Co%rt o0 Appea&s in its /e(ision, dated ,+ Mar(h ,--,, and as $odi0ied ): its Reso&%tion, dated ,- No1e$)er ,--,, are as 0o&&o2s H )e5osit6!la'ement /o&&ar deposit 2ith Citi)an;-Gene1a Mone: $ar;et p&a(e$ent 2ith Citi)an;, e1iden(ed ): Pro$issor: Note <PN> No. ,996+ <2hi(h (an(e&s and s%persedes PN No. ,,6,+>, earnin' *5.6J interest per ann%$ <p.a.> Mone: $ar;et p&a(e$ent 2ith Citi)an;, e1iden(ed ): PN No. ,996F <2hi(h (an(e&s and s%persedes PN No. ,,6,B>, earnin' *5.6J interest p.a. Mone: $ar;et p&a(e$ent 2ith =NCB =inan(e, e1iden(ed ): PN No. 6F6F <2hi(h (an(e&s and s%persedes PN No. 586,>, earnin' *FJ interest p.a. Mone: $ar;et p&a(e$ent 2ith =NCB =inan(e, e1iden(ed ): PN No. 6F6B <2hi(h (an(e&s and s%persedes PN No. ,8+,>, earnin' *FJ interest p.a. Amo$nt I *58,+9,.88

9*B,B8F.95

,-9,*6-.--

6--,---.--

6--,---.--

This Co%rt is tas;ed to deter$ine 2hether petitioners are indeed &ia)&e to ret%rn the 0ore'oin' a$o%nts, to'ether 2ith the appropriate interests and pena&ties, to respondent. It sha&& tra(e respondent@s transa(tions 2ith petitioners, 0ro$ her $one: $ar;et p&a(e$ents 2ith petitioner Citi)an; and petitioner =NCB =inan(e, to her sa1in's and (%rrent a((o%nts 2ith petitioner Citi)an;, and to her do&&ar a((o%nts 2ith Citi)an;-Gene1a. Mone: $ar;et p&a(e$ents 2ith petitioner Citi)an; The histor: o0 respondent@s $one: $ar;et p&a(e$ents 2ith petitioner Citi)an; )e'an on + /e(e$)er *8F+, 2hen she $ade a p&a(e$ent o0 P6--,---.-- as prin(ipa& a$o%nt, 2hi(h 2as s%pposed to earn an interest o0 *+J p.a. and 0or 2hi(h PN No. ,-FF9 2as iss%ed. Respondent did not :et (&ai$ the pro(eeds o0 her p&a(e$ent and, instead, ro&&ed-o1er or re-in1ested the prin(ipa& and pro(eeds se1era& ti$es in the s%((eedin' :ears 0or 2hi(h ne2 PNs 2ere iss%ed ): petitioner Citi)an; to rep&a(e the ones 2hi(h $at%red. Petitioner Citi)an; a((o%nted 0or respondent@s ori'ina& p&a(e$ent and the s%)seA%ent ro&&-o1ers thereo0, as 0o&&o2s H

T%is Co$rt 5ro'eeds to makin" its o0n &indin"s o& &a't.

)ate (mm6dd6yyyy> *,N-+N*8F+ -*N*5N*8FF -,N-8N*8FF -9N*FN*8FF

!N No. ,-FF9 ,*+B+ ,,6,+ ,,6,B ,996+ ,996F

Can'els !N No. None ,-FF9 ,*+B+ ,*+B+ ,,6,+ ,,6,B

(at$rity )ate (mm6dd6yyyy) -*N*9N*8FF -,N-BN*8FF -9N*+N*8FF -9N*+N*8FF -5N,-N*8FF -5N,-N*8FF

Amo$nt Interest (!) (5.a.) 6--,---.-*+J 6-B,555.55 *6J 9*9,86,.68 *6-9N5J ,--,---.-- *6-9N5J 9*B,B8F.95 *5-*N,J ,-9,*6-.-- *5-*N,J

$atter, s%(h as pa:$ent, is interposed ): the de0endant <Papa vs. Martine?, *, Phi&. Rep., +*9K Chinese Cha$)er o0 Co$$er(e vs. P%a To Chin', *5 Phi&. Rep., ,,,K Ban(o EspaOo&=i&ipino vs. M(Pa: L oe&&er, ,F Phi&. Rep., *B9>. . . . Sin(e the 'en%ineness and d%e e.e(%tion o0 PNs No. ,996+ and ,996F are %n(ontested, respondent 2as a)&e to esta)&ish prima facie that petitioner Citi)an; is &ia)&e to her 0or the a$o%nts stated therein. The assertion o0 petitioner Citi)an; o0 pa:$ent o0 the said PNs is an a00ir$ati1e a&&e'ation o0 a ne2 $atter, the )%rden o0 proo0 as to s%(h restin' on petitioner Citi)an;. Respondent ha1in' pro1ed the [Link](e o0 the o)&i'ation, the )%rden o0 proo0 2as %pon petitioner Citi)an; to sho2 that it had )een dis(har'ed.3994 It has a&read: )een esta)&ished ): this Co%rt that H As a 'enera& r%&e, one 2ho p&eads pa:$ent has the )%rden o0 pro1in' it. E1en 2here the p&ainti00 $%st a&&e'e non-pa:$ent, the 'enera& r%&e is that the )%rden rests on the de0endant to pro1e pa:$ent, rather than on the p&ainti00 to pro1e non-pa:$ent. The de)tor has the )%rden o0 sho2in' 2ith &e'a& (ertaint: that the o)&i'ation has )een dis(har'ed ): pa:$ent. Ghen the [Link](e o0 a de)t is 0%&&: esta)&ished ): the e1iden(e (ontained in the re(ord, the )%rden o0 pro1in' that it has )een [Link]'%ished ): pa:$ent de1o&1es %pon the de)tor 2ho o00ers s%(h de0ense to the (&ai$ o0 the (reditor. Ghere the de)tor introd%(es so$e e1iden(e o0 pa:$ent, the )%rden o0 'oin' 0or2ard 2ith the e1iden(e H as distin(t 0ro$ the 'enera& )%rden o0 proo0 H shi0ts to the (reditor, 2ho is then %nder the d%t: o0 prod%(in' so$e e1iden(e o0 non-pa:$ent.3954 Re1ie2in' the e1iden(e on re(ord, this Co%rt 0inds that petitioner Citi)an; 0ai&ed to satis0a(tori&: pro1e that PNs No. ,996+ and ,996F had a&read: )een paid, and that the a$o%nt so paid 2as a(t%a&&: %sed to open one o0 respondent@s T/ a((o%nts 2ith petitioner Citi)an;. Petitioner Citi)an; presented the testi$onies o0 t2o 2itnesses to s%pport its (ontention o0 pa:$ent: <*> That o0 Mr. #er$inio P%Eeda, 3964 the o00i(er-in-(har'e o0 &oans and p&a(e$ents at the ti$e 2hen the A%estioned transa(tions too; p&a(eK and <,> that o0 Mr. =ran(is(o Tan,39+4 the 0or$er Assistant 7i(e-President o0 Citi)an;, 2ho dire(t&: dea&t 2ith respondent 2ith re'ard to her deposits and &oans. The re&e1ant portion39F4 o0 Mr. P%Eeda@s testi$on: as to PNs No. ,996+ and ,996F <re0erred to therein as [Link])its No. C5FD and C5B,D respe(ti1e&:> is reprod%(ed )e&o2 H
Att:. Ma)asa: O;e: 3sic4. No2 Mr. Gitness, :o% 2ere as;ed to testi0: in this (ase and this (ase is 3sic4 (onsist 3sic4 o0 se1era& do(%$ents in1o&1in' transa(tions )et2een the p&ainti00 and the de0endant. No2, 2ere :o% a)&e to $a;e :o%r o2n $e$orand%$ re'ardin' a&& these transa(tionsM A Co%rt: Are :o% tr:in' to sa: that :o% ha1e persona& ;no2&ed'e or parti(ipation to these transa(tionsM Yes, )ased on $: re(o&&e(tion o0 these 0a(ts, I did (o$e %p o0 3 sic4 the o%t&ine o0 the (hrono&o'i(a& seA%en(e o0 e1ents.

Petitioner Citi)an; a&&e'ed that it had a&read: paid to respondent the prin(ipa& a$o%nts and pro(eeds o0 PNs No. ,996+ and ,996F, %pon their $at%rit:. Petitioner Citi)an; 0%rther a1erred that respondent %sed the P6--,---.-0ro$ the pa:$ent o0 PNs No. ,996+ and ,996F, p&%s P+--,---.-- so%r(ed 0ro$ her other 0%nds, to open t2o ti$e deposit <T/> a((o%nts 2ith petitioner Citi)an;, na$e&:, T/ A((o%nts No. *FFB9 and *FFB5. Petitioner Citi)an; did not den: the [Link](e nor A%estioned the a%thenti(it: o0 PNs No. ,996+ and ,996F it iss%ed in 0a1or o0 respondent 0or her $one: $ar;et p&a(e$ents. In 0a(t, it ad$itted the 'en%ineness and d%e e.e(%tion o0 the said PNs, )%t A%a&i0ied that the: 2ere no &on'er o%tstandin'. 39*4 In #i$$erd v. Ro de and McMillian,39,4 this Co%rt de&ineated the (onseA%en(es o0 s%(h an ad$ission H B: the ad$ission o0 the 'en%ineness and d%e e.e(%tion o0 an instr%$ent, as pro1ided in this se(tion, is $eant that the part: 2hose si'nat%re it )ears ad$its that he si'ned it or that it 2as si'ned ): another 0or hi$ 2ith his a%thorit:K that at the ti$e it 2as si'ned it 2as in 2ords and 0i'%res e.a(t&: as set o%t in the p&eadin' o0 the part: re&:in' %pon itK that the do(%$ent 2as de&i1eredK and that an: 0or$a& reA%isites reA%ired ): &a2, s%(h as a sea&, an a(;no2&ed'$ent, or re1en%e sta$p, 2hi(h it &a(;s, are 2ai1ed ): hi$. #en(e, s%(h de0enses as that the si'nat%re is a 0or'er: <P%ritan M0'. Co. vs. Toti L Gradi, *5 N. M., 5,6K Co. vs. North2estern Sta'e Co., * Idaho, 9F+K Goo&&en vs. Ghita(re, F9 Ind., *8BK S$ith vs. Ehnert, 5F Gis., 5F8K =ae&nar vs. Es(aOo, ** Phi&. Rep., 8,>K or that it 2as %na%thori?ed, as in the (ase o0 an a'ent si'nin' 0or his prin(ipa&, or one si'nin' in )eha&0 o0 a partnership <Co%ntr: Ban; vs. Green)er', *,F Ca&., ,+K #ensha2 vs. Root, +- In(., ,,-K Na0t?;er vs. !ant?, *9F Mi(h., 55*> or o0 a (orporation <Mer(hant vs. Internationa& Ban;in' Corporation, + Phi& Rep., 9*5K Ganita vs. Ro&&ins, F6 Miss., ,69K Barnes vs. Spen(er L Barnes Co., *+, Mi(h., 6-8>K or that, in the (ase o0 the &atter, that the (orporation 2as a%thori?ed %nder its (harter to si'n the instr%$ent <Mer(hant vs. Internationa& Ban;in' Corporation, supra>K or that the part: (har'ed si'ned the instr%$ent in so$e other (apa(it: than that a&&e'ed in the p&eadin' settin' it o%t <Pa:ne vs. Nationa& Ban;, *+ Pan., *5F>K or that it 2as ne1er de&i1ered <#%nt vs. Geir, ,8 I&&., B9K E&)rin' vs. M%&&en, 5 Idaho, *88K Thorpvs. Peo;%; Coa& Co., 5B N.Y., ,69K =ire Asso(iation o0 Phi&ade&phia vs. R%):, +- Ne)., ,*+> are (%t o00 ): the ad$ission o0 its 'en%ineness and d%e e.e(%tion. The e00e(t o0 the ad$ission is s%(h that in the (ase o0 a pro$issor: note a pri$a 0a(ie (ase is $ade 0or the p&ainti00 2hi(h dispenses 2ith the ne(essit: o0 e1iden(e on his part and entit&es hi$ to a E%d'$ent on the p&eadin's %n&ess a spe(ia& de0ense o0 ne2

A Co%rt:

Yes, :o%r #onor, I 2as the o00i(er-in (har'e o0 the %nit that 2as pro(essin' these transa(tions. So$e o0 the do(%$ents )ear $: si'nat%re.

Mr. Tan : Att:. Ma)asa :

Yes, Sir. A&ri'ht, a0ter these [Link])its CED and C=D $at%red, 2hat happened therea0terM Sp&it into t2o ti$e deposits. [Link])its CED and C=DM

And this res%$e or s%$$ar: that :o% ha1e prepared is )ased on p%re&: :o%r re(o&&e(tion or do(%$entsM A Co%rt: Are these do(%$ents sti&& a1ai&a)&e no2M A Co%rt: Better present the do(%$ents. Att:. Ma)asa: Yes, :o%r #onor, that is 2h: :o%r #onor. Att:. Ma)asa: Q No2, )asin' on the notes that :o% prepared, Mr. Gitness, and a((ordin' to :o% )asin' a&so on :o%r persona& re(o&&e(tion a)o%t a&& the transa(tions in1o&1ed )et2een Modesta Sa)eniano and de0endant Cit: Ban; 3 sic4 in this (ase. No2, 2o%&d :o% te&& %s 2hat happened to the $one: $ar;et p&a(e$ents o0 Modesta Sa)eniano that :o% ha1e ear&ier identi0ied in [Link]. C5FD and C5BDM The transa(tions 2hi(h I said ear&ier 2ere ter$inated and )oo;ed to ti$e deposits. And :o% are sa:in' ti$e deposits 2ith 2hat )an;M Gith =irst Nationa& Citi)an;. Is it the sa$e )an; as Citi)an;, N.A.M Yes, sir. And ho2 $%(h 2as the a$o%nt )oo;ed as ti$e deposit 2ith de0endant Citi)an;M In the a$o%nt o0 P6--,---.--. And o%tside this P6--,---.-- 2hi(h :o% said 2as )oo;ed o%t o0 the pro(eeds o0 [Link]. C5FD and C5BD, 2ere there other ti$e deposits opened ): Mrs. Modesta Sa)eniano at that ti$e. Yes, she a&so opened another ti$e deposit 0or P+--,---.--. So a&& in a&& Mr. Gitness, so$eti$e in Apri& o0 *8FB Mrs. Modesta Sa)eneano 3 sic4 had ti$e deposit p&a(e$ents 2ith Citi)an; in the a$o%nt o0 P6--,---.-- 2hi(h is the pro(eeds o0 E.h. C5FD and C5BD and another P+--,---.--, is it notM Yes, sir. And 2o%&d :o% ;no2 2here did the other P+--,--- p&a(ed ): Mrs. Sa)eneano 3 sic4 in a ti$e deposit 2ith Citi)an;, N.A. (a$e 3sic4 0ro$M She 0%nded it dire(t&:. Ghat are :o% sa:in' Mr. Gitness is that the P+--,--- is a 3sic4 0resh $one: (o$in' 0ro$ Mrs. Modesta Sa)eneano 3sic4M That is ri'ht. Yes, :o%r honor. Based on do(%$ents, :o%r #onor.

Mr. Tan : Att:. Ma)asa :

A Q A Q A Q A Q

Be0ore an:thin' e&se, it sho%&d )e noted that 2hen Mr. P%Eeda@s testi$on: )e0ore the RTC 2as $ade on *, Mar(h *88- and Mr. Tan@s deposition in #on' Pon' 2as (ond%(ted on 9 Septe$)er *88-, $ore than a de(ade had passed 0ro$ the ti$e the transa(tions the: 2ere testi0:in' on too; p&a(e. This Co%rt had pre1io%s&: re(o'ni?ed the 0rai&t: and %nre&ia)i&it: o0 h%$an $e$or: 2ith re'ards to 0i'%res a0ter the &apse o0 0i1e :ears.39B4 Ta;in' into (onsideration the s%)stantia& &en'th o0 ti$e )et2een the transa(tions and the 2itnesses@ testi$onies, as 2e&& as the %ndenia)&e 0a(t that )an; o00i(ers dea& 2ith $%&tip&e (&ients and pro(ess n%$ero%s transa(tions d%rin' their ten%re, this Co%rt is re&%(tant to 'i1e $%(h 2ei'ht to the testi$onies o0 Mr. P%Eeda and Mr. Tan re'ardin' the pa:$ent o0 PNs No. ,996+ and ,996F and the %se ): respondent o0 the pro(eeds thereo0 0or openin' T/ a((o%nts. This Co%rt 0inds it i$p&a%si)&e that the: sho%&d re$e$)er, a0ter a&& these :ears, this parti(%&ar transa(tion 2ith respondent in1o&1in' her PNs No. ,996+ and ,996F and T/ a((o%nts. Both 2itnesses did not 'i1e an: reason as to 2h:, 0ro$ a$on' a&& the (&ients the: had dea&t 2ith and a&& the transa(tions the: had pro(essed as o00i(ers o0 petitioner Citi)an;, the: spe(ia&&: re$e$)ered respondent and her PNs No. ,996+ and ,996F. Their testi$onies &i;e2ise &a(;ed detai&s on the (ir(%$stan(es s%rro%ndin' the pa:$ent o0 the t2o PNs and the openin' o0 the ti$e deposit a((o%nts ): respondent, s%(h as the date o0 pa:$ent o0 the t2o PNs, $ode o0 pa:$ent, and the $anner and (onte.t ): 2hi(h respondent re&a:ed her instr%(tions to the o00i(ers o0 petitioner Citi)an; to %se the pro(eeds o0 her t2o PNs in openin' the T/ a((o%nts. Moreo1er, 2hi&e there are do(%$entar: e1iden(es to s%pport and tra(e respondent@s $one: $ar;et p&a(e$ents 2ith petitioner Citi)an;, 0ro$ the ori'ina& PN No. ,-FF9, ro&&ed-o1er se1era& ti$es to, 0ina&&:, PNs No. ,996+ and ,996F, there is an e1ident a)sen(e o0 an: do(%$entar: e1iden(e on the pa:$ent o0 these &ast t2o PNs and the %se o0 the pro(eeds thereo0 ): respondent 0or openin' T/ a((o%nts. The paper trai& see$s to ha1e ended 2ith the (opies o0 PNs No. ,996+ and ,996F. A&tho%'h )oth Mr. P%Eeda and Mr. Tan said that the: )ased their testi$onies, not E%st on their $e$ories )%t a&so on the do(%$ents on 0i&e, the s%pposed do(%$ents on 2hi(h the: )ased those portions o0 their testi$on: on the pa:$ent o0 PNs No. ,996+ and ,996F and the openin' o0 the T/ a((o%nts 0ro$ the pro(eeds thereo0, 0ere ne7er 5resented #e&ore t%e 'o$rts nor made 5art o& t%e re'ords o& t%e 'ase. Respondent@s $one: $ar;et p&a(e$ents 2ere o0 s%)stantia& a$o%nts H (onsistin' o0 the prin(ipa& a$o%nt o0 P6--,---.--, p&%s the interest it sho%&d ha1e earned d%rin' the :ears o0 p&a(e$ent H and it is di00i(%&t 0or this Co%rt to )e&ie1e that petitioner Citi)an; 2o%&d not ha1e had do(%$ented the pa:$ent thereo0. Ghen Mr. P%Eeda testi0ied )e0ore the RTC on + =e)r%ar: *88-, 3984 petitioners@ (o%nse& atte$pted to present in e1iden(e a do(%$ent that 2o%&d s%pposed&: s%pport the (&ai$ o0 petitioner Citi)an; that the pro(eeds o0 PNs No. ,996+ and ,996F 2ere %sed ): respondent to open one o0 her t2o T/ a((o%nts in the a$o%nt o0 P6--,---.--. Respondent@s (o%nse& o)Ee(ted to the presentation o0 the do(%$ent sin(e it 2as a $ere [Link].R (op:, and 2as )&%rred and hard&: reada)&e. Petitioners@ (o%nse& then as;ed 0or a (ontin%an(e o0 the hearin' so that the: (an ha1e ti$e to prod%(e a )etter do(%$ent, 2hi(h 2as 'ranted ): the (o%rt. #o2e1er, d%rin' the ne.t hearin' and (ontin%an(e o0 Mr. P%Eeda@s testi$on: on *, Mar(h *88-, petitioners@ (o%nse& no &on'er re0erred to the said do(%$ent.

A Q

A Q A Q A

In his deposition in #on' Pon', Mr. Tan re(o%nted 2hat happened to PNs No. ,996+ and ,996F <re0erred to therein as [Link])its CED and C=,D respe(ti1e&:>, as 0o&&o2s H Att:. Ma)asa : No2 0ro$ the [Link])its that :o% ha1e identi0ied Mr. Tan 0ro$ [Link])its CAD to C=D, 2hi(h are [Link])its o0 the p&ainti00. No2, do I %nderstand 0ro$ :o% that the ori'ina& a$o%nt is =i1e #%ndred Tho%sand and therea0ter rene2ed in the s%((eedin' [Link])itsM

As respondent had esta)&ished a prima facie (ase that petitioner Citi)an; is o)&i'ated to her 0or the a$o%nts stated in PNs No. ,996+ and ,996F, and as petitioner Citi)an; 0ai&ed to present s%00i(ient proo0 o0 pa:$ent o0 the said PNs and the %se ): the respondent o0 the pro(eeds thereo0 to open her T/ a((o%nts, this Co%rt 0inds that !Ns No. /..,- and /..,8 are still o$tstandin" and 5etitioner Citi#ank is still lia#le to res5ondent &or t%e amo$nts stated t%erein. The si'ni0i(an(e o0 this Co%rt@s de(&aration that PNs No. ,996+ and ,996F are sti&& o%tstandin' )e(o$es apparent in the &i'ht o0 petitioners@ ne.t (ontentions H that respondent %sed the pro(eeds o0 PNs No. ,996+ and ,996F, to'ether 2ith additiona& $one:, to open T/ A((o%nts No. *FFB9 and *FFB5 2ith petitioner Citi)an;K and, s%)seA%ent&:, respondent pre-ter$inated these T/ a((o%nts and trans0erred the pro(eeds thereo0, a$o%ntin' to P*,*--,---.--, to petitioner =NCB =inan(e 0or $one: $ar;et p&a(e$ents. Ghi&e respondent@s $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e $a: )e tra(ed )a(; 2ith de0initeness to T/ A((o%nts No. *FFB9 and *FFB5, there is on&: 0&i$s: and %ns%)stantiated (onne(tion )et2een the said T/ a((o%nts and the s%pposed pro(eeds paid 0ro$ PNs No. ,996+ and ,996F. Gith PNs No. ,996+ and ,996F sti&& %npaid, then the: represent an o)&i'ation o0 petitioner Citi)an; separate and distin(t 0ro$ the o)&i'ation o0 petitioner =NCB =inan(e arisin' 0ro$ respondent@s $one: $ar;et p&a(e$ents 2ith the &atter. Mone: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e A((ordin' to petitioners, respondent@s T/ A((o%nts No. *FFB9 and *FFB5, in the tota& a$o%nt o0 P*,*--,---.--, 2ere s%pposed to $at%re on *6 Mar(h *8FB. #o2e1er, respondent, thro%'h a &etter dated ,B Apri& *8FF, 35-4 pre-ter$inated the said T/ a((o%nts and trans0erred a&& the pro(eeds thereo0 to petitioner =NCB =inan(e 0or $one: $ar;et p&a(e$ent. P%rs%ant to her instr%(tions, T/ A((o%nts No. *FFB9 and *FFB5 2ere pre-ter$inated and petitioner Citi)an; <then sti&& na$ed =irst Nationa& Cit: Ban;> iss%ed Mana'er@s Che(;s <MC> No. *88,69 35*4 and *88,6*35,4 0or the a$o%nts o0 P6--,---.-- and P+--,--.--, respe(ti1e&:. Both MCs 2ere pa:a)&e to Citi0inan(e <2hi(h, a((ordin' to Mr. P%Eeda,3594 2as one 2ith and the sa$e as petitioner =NCB =inan(e>, 2ith the additiona& notation that CANC MO/ESTA R. SABENIANO.D T:pe2ritten on MC No. *88,69 is the phrase CRe0. Pro(eeds o0 T/ *FFB9,D and on MC No. *88,6* is a si$i&ar phrase, CRe0. Pro(eeds o0 T/ *FFB5.D These phrases p%rported&: esta)&ished that the MCs 2ere paid 0ro$ the pro(eeds o0 respondent@s pre-ter$inated T/ a((o%nts 2ith petitioner Citi)an;. Upon re(eipt o0 the MCs, petitioner =NCB =inan(e deposited the sa$e to its a((o%nt 2ith =eati Ban; and Tr%st Co., as e1iden(ed ): the r%))er sta$p $ar; o0 the &atter 0o%nd at the )a(; o0 )oth MCs. In e.(han'e, petitioner =NCB =inan(e )oo;ed the a$o%nts re(ei1ed as $one: $ar;et p&a(e$ents, and a((ordin'&: iss%ed PNs No. 586, and 58+,, 0or the a$o%nts o0 P6--,---.-- and P+--,---.--, respe(ti1e&:, pa:a)&e to respondent@s sa1in's a((o%nt 2ith petitioner Citi)an;, SNA No. ,6-*9F-9-5, %pon their $at%rit: on * "%ne *8FF. On(e a'ain, respondent ro&&ed-o1er se1era& ti$es the prin(ipa& a$o%nts o0 her $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e, as 0o&&o2s H )ate (mm6dd6yyyy> -5N,8N*8FF -+N-,N*8FF -BN9*N*8FF !N No. 586, 58+, 6F6F 6F6B B*+F B*+8 Can'els !N No. None None 586, 58+, 6F6F 6F6, (at$rity )ate (mm6dd6yyyy) -+N-*N*8FF -+N-*N*8FF -BN9*N*8FF -BN9*N*8FF -BN,6N*8FB -BN,6N*8FB

As presented ): the petitioner =NCB =inan(e, respondent ro&&ed-o1er on&: the prin(ipa& a$o%nts o0 her $one: $ar;et p&a(e$ents as she (hose to re(ei1e the interest in(o$e there0ro$. Petitioner =NCB =inan(e a&so pointed o%t that 2hen PN No. 58+,, 2ith prin(ipa& a$o%nt o0 P+--,---.--, $at%red on * "%ne *8FF, respondent re(ei1ed a partia& pa:$ent o0 the prin(ipa& 2hi(h, to'ether 2ith the interest, a$o%nted to P*-,,+99.99K3554 th%s, on&: the a$o%nt o0 P6--,---.-- 0ro$ PN No. 58+, 2as ro&&ed-o1er to PN No. 6F6B. Based on the 0ore'oin' re(ords, the prin(ipa& a$o%nts o0 PNs No. 6F6F and 6F6B, %pon their $at%rit:, 2ere ro&&ed o1er to PNs No. B*+F and B*+8, respe(ti1e&:. PN No. B*+F3564 [Link]&: (an(e&ed and s%perseded PN No. 6F6F, 2hi&e PN No. B*+835+4 a&so e.p&i(it&: (an(e&ed and s%perseded PN No. 6F6B. Th%s, it is patent&: erroneo%s 0or the Co%rt o0 Appea&s to sti&& a2ard to respondent the prin(ipa& a$o%nts and interests (o1ered ): PNs No. 6F6F and 6F6B 2hen these 2ere a&read: (an(e&ed and s%perseded. It is no2 in(%$)ent %pon this Co%rt to deter$ine 2hat s%)seA%ent&: happened to PNs No. B*+F and B*+8. Petitioner =NCB =inan(e presented 0o%r (he(;s as proo0 o0 pa:$ent o0 the prin(ipa& a$o%nts and interests o0 PNs No. B*+F and B*+8 %pon their $at%rit:. A&& the (he(;s 2ere pa:a)&e to respondent@s sa1in's a((o%nt 2ith petitioner Citi)an;, 2ith the 0o&&o2in' detai&s H )ate o& Iss$an'e (mm6dd6yyyy) -8N-*N*8FB -8N-*N*8FB -8N-6N*8FB -8N-6N *8FB Amo$nt (!) Notation *,,B99.95Interest pa:$ent on PNS-B*+F *,,B99.95Interest pa:$ent on PNS-B*+8 6--,---.--=%&& pa:$ent o0 prin(ipa& on PNS-B*+F 2hi(h is here): (an(e&&ed 6--,---.--=%&& pa:$ent o0 prin(ipa& on PNS-B*+8 2hi(h is here): (an(e&&ed

C%e'k No. F+8+, F+8+* FF-96 FF-95

Then a'ain, Che(;s No. FF-96 and FF-95 2ere &ater ret%rned to petitioner =NCB =inan(e to'ether 2ith a $e$o, 35F4 dated + Septe$)er *8FB, 0ro$ Mr. Tan o0 petitioner Citi)an;, to a Mr. Bo)): Mendo?a o0 petitioner =NCB =inan(e. A((ordin' to the $e$o, the t2o (he(;s, in the tota& a$o%nt o0 P*,---,---.--, 2ere to )e ret%rned to respondent@s a((o%nt 2ith instr%(tions to )oo; the said a$o%nt in $one: $ar;et p&a(e$ents 0or one $ore :ear. P%rs%ant to the said $e$o, Che(;s No. FF-96 and FF-95 2ere in1ested ): petitioner =NCB =inan(e, on )eha&0 o0 respondent, in $one: $ar;et p&a(e$ents 0or 2hi(h it iss%ed PNs No. ,-*9B and ,-*98. The PNs ea(h (o1ered P6--,---.--, to earn **J interest per ann%$, and to $at%re on 9 Septe$)er *8F8. On 9 Septe$)er *8F8, petitioner =NCB =inan(e iss%ed Che(; No. *--*+B, pa: to the order o0 CCiti)an; N.A. ANC Modesta Sa)eniano,D in the a$o%nt o0 P*,-,,,8*+.++, as 0%&& pa:$ent o0 the prin(ipa& a$o%nts and interests o0 )oth PNs No. ,-*9B and ,-*98 and, res%&tant&:, (an(e&in' the said PNs. 35B4 Respondent a(t%a&&: ad$itted the iss%an(e and [Link](e o0 Che(; No. *--*+B, )%t 2ith the A%a&i0i(ation that the pro(eeds thereo0 2ere t%rned o1er to petitioner Citi)an;. 3584 Respondent did not (&ari0: the (ir(%$stan(es attendin' the s%pposed t%rn o1er, )%t on the )asis o0 the a&&e'ations o0 petitioner Citi)an; itse&0, the pro(eeds o0 PNs No. ,-*9B and ,-*98, a$o%ntin' to P*,-,,,8*+.++, 2as %sed ): it to &iA%idate respondent@s o%tstandin' &oans. There0ore, the deter$ination o0 2hether or not respondent is sti&& entit&ed to the ret%rn o0 the pro(eeds o0 PNs No. ,-*9B and ,-*98

Amo$nt Interest (!) (5.a.) 6--,---.-*FJ +--,---.-*FJ 6--,---.-*FJ 6--,---.-*FJ 6--,---.-*5J 6--,---.-*5J

sha&& )e dependent on the reso&%tion o0 the iss%es raised as to the [Link](e o0 the &oans and the a%thorit: o0 petitioner Citi)an; to %se the pro(eeds o0 the said PNs, to'ether 2ith respondent@s other deposits and $one: $ar;et p&a(e$ents, to pa: 0or the sa$e. Sa1in's and (%rrent a((o%nts 2ith petitioner Citi)an; Respondent presented and s%)$itted )e0ore the RTC deposit s&ips and )an; state$ents to pro1e deposits $ade to se1era& o0 her a((o%nts 2ith petitioner Citi)an;, parti(%&ar&:, A((o%nts No. --5B5,-,, 68-8*, and 5F,-F6*, 2hi(h 2o%&d ha1e a$o%nted to a tota& o0 P9,B*,,F*,.9,, had there )een no 2ithdra2a&s or de)its 0ro$ the said a((o%nts 0ro$ the ti$e the said deposits 2ere $ade. A&tho%'h the RTC and the Co%rt o0 Appea&s did not $a;e an: de0initi1e 0indin's as to the stat%s o0 respondent@s sa1in's and (%rrent a((o%nts 2ith petitioner Citi)an;, the /e(isions o0 )oth the tria& and appe&&ate (o%rts e00e(ti1e&: re(o'ni?ed on&: the P9*,-F8.*5 (o$in' 0ro$ respondent@s sa1in's a((o%nt 2hi(h 2as %sed to o00-set her a&&e'ed o%tstandin' &oans 2ith petitioner Citi)an;. 36-4 Sin(e )oth the RTC and the Co%rt o0 Appea&s had (onsistent&: re(o'ni?ed on&: the P9*,-F8.*5 o0 respondent@s sa1in's a((o%nt 2ith petitioner Citi)an;, and that respondent 0ai&ed to $o1e 0or re(onsideration or to appea& this parti(%&ar 0indin' o0 0a(t ): the tria& and appe&&ate (o%rts, it is a&read: )indin' %pon this Co%rt. Respondent is a&read: pre(&%ded 0ro$ (&ai$in' an: 'reater a$o%nt in her sa1in's and (%rrent a((o%nts 2ith petitioner Citi)an;. Th%s, this Co%rt sha&& &i$it itse&0 to deter$inin' 2hether or not respondent is entit&ed to the ret%rn o0 the a$o%nt o0 P9*,-F8.*5 sho%&d the o00-set thereo0 ): petitioner Citi)an; a'ainst her s%pposed &oans )e 0o%nd in1a&id. /o&&ar a((o%nts 2ith Citi)an;-Gene1a Respondent $ade an e00ort o0 preparin' and presentin' )e0ore the RTC her o2n (o$p%tations o0 her $one: $ar;et p&a(e$ents and do&&ar a((o%nts 2ith Citi)an;-Gene1a, p%rported&: a$o%ntin' to a tota& o0 United States <US> I959,,,-.8B, as o0 ,9 "%ne *8B6.36*4 In her Me$orand%$ 0i&ed 2ith the RTC, she (&ai$ed a $%(h )i''er a$o%nt o0 deposits and $one: $ar;et p&a(e$ents 2ith Citi)an;-Gene1a, tota&in' USI*,99+,+9B.+6.36,4 #o2e1er, respondent herse&0 a&so s%)$itted as part o0 her 0or$a& o00er o0 e1iden(e the (o$p%tation o0 her $one: $ar;et p&a(e$ents and do&&ar a((o%nts 2ith Citi)an;-Gene1a as deter$ined ): the &atter.3694 Citi)an;-Gene1a a((o%nted 0or respondent@s $one: $ar;et p&a(e$ents and do&&ar a((o%nts as 0o&&o2s H MO/ESTA SABENIANO LNOR TTTTTTTTTTTTTTTTTT USI U USI - USI USI USI U USI - USI [email protected]+ 86.-9-@,55.-+ **[email protected]*@96B.65*.*F Prin(ipa& =id. P&a(e$ent Interest at 9,BF6J p.a. 0ro$ *,.-F. H ,6.*-.F8 Co$$ission <$ini$%$> Tota& pro(eeds on ,6.*-.*8F8 Prin(ipa& =id. P&a(e$ent Interest at 5,*,6J p.a. 0ro$ *,.-F. H ,6.*-.F8 Co$$ission

USI USI U USI USI - USI

**6@9*F.99 *56@6+*.98 **@9B*.9* *6+@85,.F*58@+9,.88

Tota& pro(eeds on ,6.*-.*8F8 Tota& pro(eeds o0 )oth p&a(e$ents on ,6.*-.*8F8 tota& o0 )oth (%rrent a((o%nts Tota& 0%nds a1ai&a)&e Trans0er to Citi)an; Mani&a on ,+.*-.*8F8 <(o%nter 1a&%e o0 Pesos *@*-,@[Link]> Ba&an(e in (%rrent a((o%nts Trans0er to Citi)an; *9, *8B%eri(h H a( no. *,*968 on Mar(h

USI - USI

[email protected]* [email protected]

USI

9*-.BF

1ario%s (har'es in(&%din' (&osin' (har'es

A((ordin' to the 0ore'oin' (o$p%tation, ): ,6 O(to)er *8F8, respondent had a tota& o0 USI*6+,85,.F-, 0ro$ 2hi(h, USI*58,+9,.88 2as trans0erred ): Citi)an;Gene1a to petitioner Citi)an; in Mani&a, and 2as %sed ): the &atter to o00-set respondent@s o%tstandin' &oans. The )a&an(e o0 respondent@s a((o%nts 2ith Citi)an;Gene1a, a0ter the re$ittan(e to petitioner Citi)an; in Mani&a, a$o%nted to USIF,9-8.F*, 2hi(h 2as s%)seA%ent&: [Link] ): a trans0er to another a((o%nt 2ith Citi)an;- %eri(h, in the a$o%nt o0 USI+,88B.B5, and ): pa:$ent o0 1ario%s )an; (har'es, in(&%din' (&osin' (har'es, in the a$o%nt o0 USI9*-.BF. Ri'ht&: so, )oth the RTC and the Co%rt o0 Appea&s 'a1e $ore (reden(e to the (o$p%tation o0 Citi)an;-Gene1a as to the stat%s o0 respondent@s a((o%nts 2ith the said )an;, rather than the one prepared ): respondent herse&0, 2hi(h 2as e1ident&: se&0-ser1in'. On(e a'ain, this Co%rt sha&& &i$it itse&0 to deter$inin' 2hether or not respondent is entit&ed to the ret%rn o0 the a$o%nt o0 USI*58,+9,.88 sho%&d the o00-set thereo0 ): petitioner Citi)an; a'ainst her a&&e'ed o%tstandin' &oans )e 0o%nd in1a&id. Respondent (annot (&ai$ an: 'reater a$o%nt sin(e she did not per0e(t an appea& o0 the /e(ision o0 the Co%rt o0 Appea&s, dated ,+ Mar(h ,--,, 2hi(h 0o%nd that she is entit&ed on&: to the ret%rn o0 the said a$o%nt, as 0ar as her a((o%nts 2ith Citi)an;-Gene1a is (on(erned. III 6etitioner Citiban3 2as able to establis) b1 preponderan-e of eviden-e t)e e0isten-e of respondent9s loans. Petitioners@ 1ersion o0 e1ents In s%$, the 0o&&o2in' a$o%nts 2ere %sed ): petitioner Citi)an; to &iA%idate respondent@s p%rported o%tstandin' &oans H )es'ri5tion Prin(ipa& and interests o0 PNs No. ,-*9B and ,-*98 <$one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e> Sa1in's a((o%nt 2ith petitioner Citi)an; Amo$nt P *,-,,,8*+.++ 9*,-F8.*5

/o&&ar re$ittan(e 0ro$ eA%i1a&ent O0 USI*58,+9,.88> Total

Citi)an;-Gene1a <peso *,*-,,[Link] P ,,*6+,85-.6B

A&& the PNs stated that the p%rpose o0 the &oans (o1ered there): is CTo &iA%idate [Link]' o)&i'ation,D e.(ept 0or PN No. 95695, 2hi(h stated 0or its p%rpose Cpersona& in1est$ent.D

Respondent se(%red her 0ore'oin' &oans 2ith petitioner Citi)an; ): e.e(%tin' /eeds o0 Assi'n$ent o0 her $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e. On , Mar(h *8FB, respondent e.e(%ted in 0a1or o0 petitioner Citi)an; a /eed o0 Assi'n$ent 36F4 o0 PN No. B*+8, 2hi(h 2as iss%ed ): petitioner =NCB =inan(e, to se(%re pa:$ent o0 the (redit and )an;in' 0a(i&ities [Link] to her ): petitioner As ear&: as 8 =e)r%ar: *8FB, respondent o)tained her 0irst &oan 0ro$ Citi)an;, in the a''re'ate prin(ipa& a$o%nt o0 P6--,---.--. On 8 Mar(h *8FB, petitioner Citi)an; in the prin(ipa& a$o%nt o0 P,--,---.--, 0or 2hi(h she e.e(%ted PN respondent e.e(%ted in 0a1or o0 petitioner Citi)an; another /eed o0 Assi'n$ent, No. 9*6-5.3654 Petitioner Citi)an; [Link] to her se1era& other &oans in the 36B4 this ti$e, o0 PN No. B*+F, a&so iss%ed ): petitioner =NCB =inan(e, to se(%re s%((eedin' $onths. So$e o0 these &oans 2ere paid, 2hi&e others 2ere ro&&ed-o1er or pa:$ent o0 the (redit and )an;in' 0a(i&ities [Link] to her ): petitioner Citi)an;, in rene2ed. Si'ni0i(ant to the Petition at )ar are the &oans 2hi(h respondent o)tained the a''re'ate a$o%nt o0 P6--,---.--. Ghen PNs No. B*+F and B*+8, representin' 0ro$ "%&: *8FB to "an%ar: *8F8, appropriate&: (o1ered ): PNs <0irst set>. 3664 The respondent@s $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e, $at%red and a''re'ate prin(ipa& a$o%nt o0 these &oans 2as P*,8,-,---.--, 2hi(h (o%&d )e )ro;en 2ere ro&&ed-o1er to PNs No. ,-*9B and ,-*98, respondent e.e(%ted ne2 /eeds o0 do2n as 0o&&o2s H Assi'n$ent,3684 in 0a1or o0 petitioner Citi)an;, on ,6 A%'%st *8FB. A((ordin' to the $ore re(ent /eeds, respondent assi'ned PNs No. ,-*9B and ,-*98, representin' her )ate o& Iss$an'e )ate o& (at$rity )ate o& Release ro&&ed-o1er $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e, to petitioner !N No. (mm6dd6yyyy) (mm6dd6yyyy) !rin'i5al (mm6dd6yyyy) Citi)an; as se(%rit: 0or the )an;in' and (redit 0a(i&ities it [Link] to her, in the Amo$nt a''re'ate prin(ipa& a$o%nt o0 P6--,---.-- per /eed. 9,896 -FN,-N*8FB -8N*BN*8FB P 5--,---.--FN,-N*8FB 99F6* *-N*9N*8FB *,N*,N*8FB *--,---.-Unre(o1ered In addition to the /eeds o0 Assi'n$ent o0 her $one: $ar;et p&a(e$ents 2ith 99F8B *-N*8N*8FB **N-9N*8FB *--,---.-*-N*8N*8FB petitioner =NCB =inan(e, respondent a&so e.e(%ted a /e(&aration o0 P&ed'e, 3+-4 in 95-,6 **N*6N*8FB -*N*6N*8F8 *6-,---.-**N*+N*8FB 2hi(h she s%pposed&: p&ed'ed C3a4&& present and 0%t%re 0id%(iar: p&a(e$ents he&d in $: persona& andNor Eoint na$e 2ith Citi)an;, S2it?er&and,D to se(%re a&& (&ai$s the 95-F8 **N,*N*8FB -*N*8N*8F8 ,6-,---.-**N,*N*8FB petitioner Citi)an; $a: ha1e or, in the 0%t%re, a(A%ire a'ainst respondent. The 95*8, *,N-5N*8FB -*N*BN*8F8 *--,---.-*,N-6N*8FB petitioners@ (op: o0 the /e(&aration o0 P&ed'e is %ndated, 2hi&e that o0 the respondent, 955-, *,N,+N*8FB -,N,9N*8F8 9--,---.-*,N,+N*8FB a (op: (erti0ied ): a Citi)an;-Gene1a o00i(er, )ore the date ,5 Septe$)er *8F8. 3+*4 95695 -*N-8N*8F8 -9N-8N*8F8 *6-,---.--*N-8N*8F8 A((ordin' to petitioner Citi)an;, respondent in(%rred her &oans %nder the (ir(%$stan(es narrated )e&o2. 95+-8 95F5-*N*FN*8F8 -*N9-N*8F8 -9N*8N*8F8 -9N9-N*8F8 *6-,---.-,,-,---.-! +,9/:,:::.:: -*N*FN*8F8 -*N9-N*8F8 Ghen respondent 0ai&ed to pa: the se(ond set o0 PNs %pon their $at%rit:, an e.(han'e o0 &etters ens%ed )et2een respondent andNor her representati1es, on one hand, and the representati1es o0 petitioners, on the other. The 0irst &etter3+,4 2as dated 6 Apri& *8F8, addressed to respondent and si'ned ): Mr. Tan, as the $ana'er o0 petitioner Citi)an;, 2hi(h stated, in part, that H /espite o%r repeated reA%ests and 0o&&o2-%p, 2e re'ret :o% ha1e not 'ranted %s 2ith an: response or pa:$ent. Ge, there0ore, ha1e no a&ternati1e )%t to (a&& :o%r &oan o0 P*,8,-,---.-- p&%s interests and other (har'es d%e and de$anda)&e. I0 :o% sti&& 0ai& to sett&e this o)&i'ation ): 5N,FNF8, 2e sha&& ha1e no other a&ternati1e )%t to re0er :o%r a((o%nt to o%r &a2:ers 0or &e'a& a(tion to prote(t the interest o0 the )an;. Respondent sent a rep&: &etter 3+94 dated ,+ Apri& *8F8, printed on paper )earin' the &etterhead o0 respondent@s (o$pan:, MC Adore Internationa& Pa&a(e, the )od: o0 2hi(h reads H This is in rep&: to :o%r &etter dated Apri& 6, *8F8 in1itin' $: attention to $: &oan 2hi(h has )e(o$e d%e. P%rs%ant to o%r representation 2ith :o% o1er the te&ephone thro%'h Mr. =. A. Tan, :o% a&&o2 %s to pa: the interests d%e 0or the $eanti$e.

Total

Ghen respondent 2as %na)&e to pa: the 0irst set o0 PNs %pon their $at%rit:, these 2ere ro&&ed-o1er or rene2ed se1era& ti$es, ne(essitatin' the e.e(%tion ): respondent o0 ne2 PNs in 0a1or o0 petitioner Citi)an;. As o0 6 Apri& *8F8, respondent had the 0o&&o2in' o%tstandin' PNs <se(ond set>, 36+4 the prin(ipa& a$o%nt o0 2hi(h re$ained at P*,8,-,---.-- H )ate o& Iss$an'e (mm6dd6yyyy) -*N-*N*8F8 -*N-,N*8F8 -*N-8N*8F8 -*N*8N*8F8 -*N,+N*8F8 -,N,9N*8F8 -9N*8N*8F8 -9N*8N*8F8 -9N,-N*8F8 -9N9-N*8F8 )ate o& (at$rity (mm6dd6yyyy) -9N-,N*8F8 -9N-,N*8F8 -9N-8N*8F8 -9N*+N*8F8 -9N*,N*8F8 -6N,8N*8F8 -6N,8N*8F8 -6N,8N*8F8 -6N,8N*8F8 -6N,8N*8F8

!N No. 956*956-8 95695 95+*, 95F5* 96+B8 96+85 96+86 96+85+ 96+8F Total

!rin'i5al Amo$nt P 5--,---.-*--,---.-*6-,---.-*6-,---.-*--,---.-9--,---.-*6-,---.-*--,---.-,6-,---.-,,-,---.-! +,9/:,:::.::

P&ease a((ept o%r Co$tr%st Che(; in the a$o%nt o0 P+,,+B9.99. P&ease )ear 2ith %s 0or a &itt&e 2hi&e, at $ost ninet: da:s. As :o% ;no2, 2e ha1e a pendin' &oan 2ith the /e1e&op$ent Ban; o0 the Phi&ippines in the a$o%nt o0 P**-M. This &oan has a&read: )een re(o$$ended 0or appro1a& and 2o%&d )e s%)$itted to the Board o0 Go1ernors. In 0a(t, to 0%rther 0a(i&itate the ear&: re&ease o0 this &oan, 2e ha1e presented and 0%rnished Go1. ". Ten'(o a .ero. (op: o0 :o%r &etter. Yo% 2i&& )e doin' o%r (orporation a 1er: 1ia)&e ser1i(e, sho%&d :o% 'rant %s o%r reA%est 0or a &itt&e $ore ti$e. A 2ee; &ater or on 9 Ma: *8F8, a (ertain C. N. P%'eda, desi'nated as CE.e(%ti1e Se(retar:,D sent a &etter 3+54 to petitioner Citi)an;, on )eha&0 o0 respondent. The &etter 2as a'ain printed on paper )earin' the &etterhead o0 MC Adore Internationa& Pa&a(e. The pertinent para'raphs o0 the said &etter are reprod%(ed )e&o2 H Per instr%(tions o0 Mrs. Modesta R. Sa)eniano, 2e 2o%&d &i;e to reA%est 0or a re-(o$p%tation o0 the interest and pena&t: (har'es on her &oan in the a''re'ate a$o%nt o0 P*,8,-,---.-- 2ith $at%rit: date o0 a&& pro$issor: notes at "%ne 9-, *8F8. As she has persona&&: dis(%ssed 2ith :o% :esterda:, this date 2i&& $ore or &ess ass%re :o% o0 ear&: sett&e$ent. In this re'ard, p&ease entr%st to )earer, o%r Co$tr%st (he(; 0or P+,,+B9.99 to )e rep&a(ed ): another (he(; 2ith a$o%nt res%&tin' 0ro$ the ne2 (o$p%tation. A&so, to 0a(i&itate the pro(essin' o0 the sa$e, $a: 2e reA%est 0or another set o0 pro$issor: notes 0or the si'nat%re o0 Mrs. Sa)eniano and to (an(e& the pre1io%s ones she has si'ned and 0or2arded to :o%. This 2as 0o&&o2ed ): a te&e'ra$, 3+64 dated 6 "%ne *8F8, and re(ei1ed ): petitioner Citi)an; the 0o&&o2in' da:. The te&e'ra$ 2as sent ): a /e2e: G. Soriano, !e'a& Co%nse&. The te&e'ra$ a(;no2&ed'ed re(eipt o0 the te&e'ra$ sent ): petitioner Citi)an; re'ardin' the Cre-past d%e o)&i'ationD o0 M(Adore Internationa& Pa&a(e. #o2e1er, it reported that respondent, the President and Chair$an o0 MC Adore Internationa& Pa&a(e, 2as present&: a)road ne'otiatin' 0or a )i' &oan. Th%s, he 2as reA%estin' 0or an [Link] o0 the d%e date o0 the o)&i'ation %nti& respondent@s arri1a& on or )e0ore 9* "%&: *8F8. The ne.t &etter,3++4 dated ,* "%ne *8F8, 2as si'ned ): respondent herse&0 and addressed to Mr. Bo)): Mendo?a, a Mana'er o0 petitioner =NCB =inan(e. Respondent 2rote therein H Re: PN No. ,-*9B 0or P6--,---.-- L PN No. ,-*98 0or P6--,---.-tota&&in' P* Mi&&ion, )oth PNs 2i&& $at%re on 8N9N*8F8.

P&ease note that the (aptioned t2o p&a(e$ents are (ontin%o%s&: p&ed'edNh:pothe(ated to Citi)an;, Mani&a to s%pport $: persona& o%tstandin' &oan. There0ore, p&ease do not re&ease the (aptioned p&a(e$ents %pon $at%rit: %nti& :o% ha1e re(ei1ed the instr%(tion 0ro$ Citi)an;, Mani&a. On e1en date, respondent sent another &etter 3+F4 to Mr. Tan o0 petitioner Citi)an;, statin' that H Re: SNA No. ,6-,,68,B and CNA No. 5B5-85+

This &etter ser1es as an a%thorit: to de)it 2hate1er the o%tstandin' )a&an(e 0ro$ $: (aptioned a((o%nts and (redit the a$o%nt to $: &oan o%tstandin' a((o%nt 2ith :o%. Un&i;e respondent@s ear&ier &etters, )oth &etters, dated ,* "%ne *8F8, are printed on p&ain paper, 2itho%t the &etterhead o0 her (o$pan:, MC Adore Internationa& Pa&a(e. B: 6 Septe$)er *8F8, respondent@s o%tstandin' and past d%e o)&i'ations to petitioner Citi)an; tota&ed P,,*,9,B59.,-, representin' the prin(ipa& a$o%nts p&%s interests. Re&:in' on respondent@s /eeds o0 Assi'n$ent, petitioner Citi)an; app&ied the pro(eeds o0 respondent@s $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e, as 2e&& as her deposit a((o%nt 2ith petitioner Citi)an;, to part&: &iA%idate respondent@s o%tstandin' &oan )a&an(e,3+B4 as 0o&&o2s H Respondent@s o%tstandin' o)&i'ation <prin(ipa& and interest> !ess: Pro(eeds 0ro$ respondent@s $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e <prin(ipa& and interest> /eposits in respondent@s )an; a((o%nts 2ith petitioner Citi)an; Ba&an(e o0 respondent@s o)&i'ation P ,,*,9,B59.,<*,-,,,8*+.++> <9*,-F8.*5> P *,-+8,B5F.5-

Mr. Tan o0 petitioner Citi)an; s%)seA%ent&: sent a &etter, 3+84 dated ,B Septe$)er *8F8, noti0:in' respondent o0 the stat%s o0 her &oans and the 0ore'oin' (o$pensation 2hi(h petitioner Citi)an; e00e(ted. In the &etter, Mr. Tan in0or$ed respondent that she sti&& had a re$ainin' past-d%e o)&i'ation in the a$o%nt o0 P*,-+8,B5F.5-, as o0 6 Septe$)er *8F8, and sho%&d respondent 0ai& to pa: the a$o%nt ): *6 O(to)er *8F8, then petitioner Citi)an; sha&& pro(eed to o00-set the %npaid a$o%nt 2ith respondent@s other (o&&atera&, parti(%&ar&:, a $one: $ar;et p&a(e$ent in Citi)an;-#on';on'. On 6 O(to)er *8F8, respondent 2rote Mr. Tan o0 petitioner Citi)an;, on paper )earin' the &etterhead o0 MC Adore Internationa& Pa&a(e, as re'ards the P*,8,-,---.-- &oan a((o%nt s%pposed&: o0 MC Adore =inan(e L In1est$ent, In(., and reA%ested 0or a state$ent o0 a((o%nt (o1erin' the prin(ipa& and interest o0 the &oan as o0 9* O(to)er *8F8. She stated therein that the &oan o)&i'ation sha&& )e paid 2ithin +- da:s 0ro$ re(eipt o0 the state$ent o0 a((o%nt. A&$ost three 2ee;s &ater, or on ,6 O(to)er *8F8, a (ertain Att:. Moises To&entino dropped ): the o00i(e o0 petitioner Citi)an;, 2ith a &etter, dated 8 O(to)er

This is to a%thori?e :o% to re&ease the a((r%ed A%arter&: interests pa:$ent 0ro$ $: (aptioned p&a(e$ents and 0or2ard dire(t&: to Citi)an;, Mani&a Attention: Mr. =. A. Tan, Mana'er, to app&: to $: interest pa:a)&e on $: o%tstandin' &oan 2ith Citi)an;.

*8F8, and printed on paper 2ith the &etterhead o0 MC Adore Internationa& Pa&a(e, 2hi(h a%thori?ed the )earer thereo0 to represent the respondent in sett&in' the o1erd%e a((o%nt, this ti$e, p%rported&:, o0 MC Adore Internationa& Pa&a(e #ote&. The &etter 2as si'ned ): respondent as the President and Chair$an o0 the Board. E1ent%a&&:, Att:. Antonio A'(aoi&i o0 A'(aoi&i L Asso(iates, as (o%nse& o0 petitioner Citi)an;, sent a &etter to respondent, dated 9* O(to)er *8F8, in0or$in' her that petitioner Citi)an; had e00e(ted an o00-set %sin' her a((o%nt 2ith Citi)an;Gene1a, in the a$o%nt o0 USI*58,+9,.88, a'ainst her Co%tstandin', o1erd%e, de$anda)&e and %npaid o)&i'ationD to petitioner Citi)an;. Att:. A'(aoi&i (&ai$ed therein that the (o$pensation or o00-set 2as $ade p%rs%ant to and in a((ordan(e 2ith the pro1isions o0 Arti(&es *,FB thro%'h *,8- o0 the Ci1i& Code. #e 0%rther de(&ared that respondent@s o)&i'ation to petitioner Citi)an; 2as no2 0%&&: paid and &iA%idated. Un0ort%nate&:, on F O(to)er *8BF, a 0ire '%tted the F th 0&oor o0 petitioner Citi)an;@s )%i&din' at Paseo de [Link] St., Ma;ati, Metro Mani&a. Petitioners s%)$itted a Certi0i(ation3F-4 to this e00e(t, dated *F "an%ar: *88*, iss%ed ): the Chie0 o0 the Arson In1esti'ation Se(tion, =ire /istri(t III, Ma;ati =ire Station, Metropo&itan Po&i(e =or(e. The Fth 0&oor o0 petitioner Citi)an;@s )%i&din' ho%sed its Contro& /i1ision, 2hi(h 2as in (har'e o0 ;eepin' the ne(essar: do(%$ents 0or (ases in 2hi(h it 2as in1o&1ed. A0ter (o$pi&in' the do(%$entar: e1iden(e 0or the present (ase, Att:. Renato ". =ernande?, interna& &e'a& (o%nse& o0 petitioner Citi)an;, 0or2arded the$ to the Contro& /i1ision. The ori'ina& (opies o0 the MCs, 2hi(h s%pposed&: represent the pro(eeds o0 the 0irst set o0 PNs, as 2e&& as that o0 other do(%$entar: e1iden(e re&ated to the (ase, 2ere a$on' those )%rned in the said 0ire.3F*4 Respondent@s 1ersion o0 e1ents Respondent disp%ted petitioners@ narration o0 the (ir(%$stan(es s%rro%ndin' her &oans 2ith petitioner Citi)an; and the a&&e'ed a%thorit: she 'a1e 0or the o00-set or (o$pensation o0 her $one: $ar;et p&a(e$ents and deposit a((o%nts 2ith petitioners a'ainst her &oan o)&i'ation. Respondent denied o%tri'ht e.e(%tin' the 0irst set o0 PNs, e.(ept 0or one <PN No. 95695 in parti(%&ar>. A&tho%'h she ad$itted that she o)tained se1era& &oans 0ro$ petitioner Citi)an;, these on&: a$o%nted to P*,*6-,---.--, and she had a&read: paid the$. She se(%red 0ro$ petitioner Citi)an; t2o &oans o0 P6--,---.-- ea(h. She e.e(%ted in 0a1or o0 petitioner Citi)an; the (orrespondin' PNs 0or the &oans and the /eeds o0 Assi'n$ent o0 her $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e as se(%rit:.3F,4 To pro1e pa:$ent o0 these &oans, respondent presented t2o pro1isiona& re(eipts o0 petitioner Citi)an; H No. *85F*, 3F94 dated ** A%'%st *8FB, and No. *,F,9,3F54 dated *- No1e$)er *8FB H )oth si'ned ): Mr. Tan, and a(;no2&ed'in' re(eipt 0ro$ respondent o0 se1era& (he(;s in the tota& a$o%nt o0 P6--,F55.-and P6--,---.--, respe(ti1e&:, 0or C&iA%idation o0 &oan.D She )orro2ed another P*6-,---.-- 0ro$ petitioner Citi)an; 0or persona& in1est$ent, and 0or 2hi(h she e.e(%ted PN No. 95695, on 8 "an%ar: *8F8. Th%s, she ad$itted to re(ei1in' the pro(eeds o0 this &oan 1ia MC No. ,,B,F-. She in1ested the &oan a$o%nt in another $one: $ar;et p&a(e$ent 2ith petitioner =NCB =inan(e. In t%rn, she %sed the 1er: sa$e $one: $ar;et p&a(e$ent 2ith petitioner =NCB =inan(e as se(%rit: 0or her P*6-,---.-- &oan 0ro$ petitioner Citi)an;. Ghen she 0ai&ed to pa: the &oan 2hen it )e(a$e d%e, petitioner Citi)an; a&&e'ed&: 0or0eited her $one: $ar;et p&a(e$ent 2ith petitioner =NCB =inan(e and, th%s, the &oan 2as a&read: paid.
3F64

Respondent &i;e2ise A%estioned the MCs presented ): petitioners, e.(ept 0or one <MC No. ,,B,F- in parti(%&ar>, as proo0 that she re(ei1ed the pro(eeds o0 the &oans (o1ered ): the 0irst set o0 PNs. As re(o%nted in the pre(edin' para'raph, respondent ad$itted to o)tainin' a &oan o0 P*6-,---.--, (o1ered ): PN No. 95695, and re(ei1in' MC No. ,,B,F- representin' the pro(eeds thereo0, )%t (&ai$ed that she a&read: paid the sa$e. She denied e1er re(ei1in' MCs No. ,,-F-* <0or the &oan o0 P5--,---.--, (o1ered ): PN No. 99896> and No. ,,+5+F <0or the &oan o0 P,6-,---.--, (o1ered ): PN No. 95-F8>, and pointed o%t that the (he(;s did not )ear her indorse$ents. She did not den: re(ei1in' a&& other (he(;s )%t she interposed that she re(ei1ed these (he(;s, not as pro(eeds o0 &oans, )%t as pa:$ent o0 the prin(ipa& a$o%nts andNor interests 0ro$ her $one: $ar;et p&a(e$ents 2ith petitioner Citi)an;. She a&so raised do%)ts as to the notation on ea(h o0 the (he(;s that reads CRE: Pro(eeds o0 PNS3(orrespondin' PN No.4,D sa:in' that s%(h notation did not appear on the MCs 2hen she ori'ina&&: re(ei1ed the$ and that the notation appears to ha1e )een 2ritten ): a t:pe2riter di00erent 0ro$ that %sed in 2ritin' a&& other in0or$ation on the (he(;s <i.e., date, pa:ee, and a$o%nt>.3F+4 She e1en testi0ied that MCs 2ere not s%pposed to )ear notations indi(atin' the p%rpose 0or 2hi(h the: 2ere iss%ed. As to the se(ond set o0 PNs, respondent a(;no2&ed'ed ha1in' si'ned the$ a&&. #o2e1er, she asserted that she on&: e.e(%ted these PNs as part o0 the si$%&ated &oans she and Mr. Tan o0 petitioner Citi)an; (on(o(ted. Respondent e.p&ained that she had a pendin' &oan app&i(ation 0or a )i' a$o%nt 2ith the /e1e&op$ent Ban; o0 the Phi&ippines </BP>, and 2hen Mr. Tan 0o%nd o%t a)o%t this, he s%''ested that the: (o%&d $a;e it appear that the respondent had o%tstandin' &oans 2ith petitioner Citi)an; and the &atter 2as a&read: de$andin' pa:$ent thereo0K this $i'ht pers%ade /BP to appro1e respondent@s &oan app&i(ation. Mr. Tan $ade the respondent si'n the se(ond set o0 PNs, so that he $a: ha1e so$ethin' to sho2 the /BP in1esti'ator 2ho $i'ht inA%ire 2ith petitioner Citi)an; as to respondent@s &oans 2ith the &atter. On her o2n (opies o0 the said PNs, respondent 2rote ): hand the notation, CThis isa < sic> si$%&ated non-ne'otia)&e note, si'ned (op: 'i1en to Mr. Tan., < sic> per a'ree$ent to )e sho2n to /BP representati1e. it2i&& < sic> )e ret%rned to $e i0 the P**TM <sic> &oan 0or MC Adore Pa&a(e #ote& is appro1ed ): /BP.D3FF4 =indin's o0 this Co%rt as to the [Link](e o0 the &oans A0ter 'oin' thro%'h the testi$onia& and do(%$entar: e1iden(e presented ): )oth sides to this (ase, it is this Co%rt@s assess$ent that respondent did indeed ha1e o%tstandin' &oans 2ith petitioner Citi)an; at the ti$e it e00e(ted the o00-set or (o$pensation on ,6 "%&: *8F8 <%sin' respondent@s sa1in's deposit 2ith petitioner Citi)an;>, 6 Septe$)er *8F8 <%sin' the pro(eeds o0 respondent@s $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e> and ,+ O(to)er *8F8 <%sin' respondent@s do&&ar a((o%nts re$itted 0ro$ Citi)an;-Gene1a>. The tota&it: o0 petitioners@ e1iden(e as to the [Link](e o0 the said &oans preponderates o1er respondent@s. Preponderant e1iden(e $eans that, as a 2ho&e, the e1iden(e add%(ed ): one side o%t2ei'hs that o0 the ad1erse part:.3FB4 Respondent@s o%tstandin' o)&i'ation 0or P*,8,-,---.-- had )een s%00i(ient&: do(%$ented ): petitioner Citi)an;. The se(ond set o0 PNs is a $ere rene2a& o0 the prior &oans ori'ina&&: (o1ered ): the 0irst set o0 PNs, e.(ept 0or PN No. 95695. The 0irst set o0 PNs is s%pported, in t%rn, ): the [Link](e o0 the MCs that represent the pro(eeds thereo0 re(ei1ed ): the respondent.

It )ears to e$phasi?e that the pro(eeds o0 the &oans 2ere paid to respondent in MCs, 2ith the respondent spe(i0i(a&&: na$ed as pa:ee. MCs (he(;s are dra2n ): the )an;@s $ana'er %pon the )an; itse&0 and re'arded to )e as 'ood as the $one: it represents.3F84 Moreo1er, the MCs 2ere (rossed (he(;s, 2ith the 2ords CPa:ee@s A((o%nt On&:.D In 'enera&, a (rossed (he(; (annot )e presented to the dra2ee )an; 0or pa:$ent in (ash. Instead, the (he(; (an on&: )e deposited 2ith the pa:ee@s )an; 2hi(h, in t%rn, $%st present it 0or pa:$ent a'ainst the dra2ee )an; in the (o%rse o0 nor$a& )an;in' ho%rs. The (rossed (he(; (annot )e presented 0or pa:$ent, )%t it (an on&: )e deposited and the dra2ee )an; $a: on&: pa: to another )an; in the pa:ee@s or indorser@s a((o%nt.3B-4 The e00e(t o0 (rossin' a (he(; 2as des(ri)ed ): this Co%rt in P ilippine Commercial %nternational &an' v. Court of (ppeals 3B*4 H 3T4he (rossin' o0 a (he(; 2ith the phrase CPa:ee@s A((o%nt On&:D is a 2arnin' that the (he(; sho%&d )e deposited in the a((o%nt o0 the pa:ee. Th%s, it is the d%t: o0 the (o&&e(tin' )an; PCI Ban; to as(ertain that the (he(; )e deposited in pa:ee@s a((o%nt on&:. It is )o%nd to s(r%tini?e the (he(; and to ;no2 its depositors )e0ore it (an $a;e the (&earin' indorse$ent Ca&& prior indorse$ents andNor &a(; o0 indorse$ent '%aranteed.D The (rossed MCs presented ): petitioner Ban; 2ere indeed deposited in se1era& di00erent )an; a((o%nts and (&eared ): the C&earin' O00i(e o0 the Centra& Ban; o0 the Phi&ippines, as e1iden(ed ): the sta$p $ar;s and notations on the said (he(;s. The (rossed MCs are a&read: in the possession o0 petitioner Citi)an;, the dra2ee )an;, 2hi(h 2as %&ti$ate&: responsi)&e 0or the pa:$ent o0 the a$o%nt stated in the (he(;s. Gi1en that a (he(; is $ore than E%st an instr%$ent o0 (redit %sed in (o$$er(ia& transa(tions 0or it a&so ser1es as a re(eipt or e1iden(e 0or the dra2ee )an; o0 the (an(e&&ation o0 the said (he(; d%e to pa:$ent, 3B,4 then, the possession ): petitioner Citi)an; o0 the said MCs, d%&: sta$ped CPaidD 'i1es rise to the pres%$ption that the said MCs 2ere a&read: paid o%t to the intended pa:ee, 2ho 2as in this (ase, the respondent. This Co%rt 0inds app&i(a)&e herein the pres%$ptions that pri1ate transa(tions ha1e )een 0air and re'%&ar,3B94 and that the ordinar: (o%rse o0 )%siness has )een 0o&&o2ed.3B54 There is no A%estion that the &oan transa(tion )et2een petitioner Citi)an; and the respondent is a pri1ate transa(tion. The transa(tions re1o&1in' aro%nd the (rossed MCs H 0ro$ their iss%an(e ): petitioner Citi)an; to respondent as pa:$ent o0 the pro(eeds o0 her &oansK to its deposit in respondent@s a((o%nts 2ith se1era& di00erent )an;sK to the (&earin' o0 the MCs ): an independent (&earin' ho%seK and 0ina&&:, to the pa:$ent o0 the MCs ): petitioner Citi)an; as the dra2ee )an; o0 the said (he(;s H are a&& pri1ate transa(tions 2hi(h sha&& )e pres%$ed to ha1e )een 0air and re'%&ar to a&& the parties (on(erned. In addition, the )an;s in1o&1ed in the 0ore'oin' transa(tions are a&so pres%$ed to ha1e 0o&&o2ed the ordinar: (o%rse o0 )%siness in the a((eptan(e o0 the (rossed MCs 0or deposit in respondent@s a((o%nts, s%)$ittin' the$ 0or (&earin', and their e1ent%a& pa:$ent and (an(e&&ation. The a0ore-stated pres%$ptions are disp%ta)&e, $eanin', the: are satis0a(tor: i0 %n(ontradi(ted, )%t $a: )e (ontradi(ted and o1er(o$e ): other e1iden(e. 3B64 Respondent, ho2e1er, 2as %na)&e to present s%00i(ient and (redi)&e e1iden(e to disp%te these pres%$ptions. It sho%&d )e re(a&&ed that o%t o0 the nine MCs presented ): petitioner Citi)an;, respondent ad$itted to re(ei1in' one as pro(eeds o0 a &oan <MC No. ,,B,F->, denied re(ei1in' t2o <MCs No. ,,-F-* and ,,+5+F>, and ad$itted to re(ei1in' a&& the rest,

)%t not as pro(eeds o0 her &oans, )%t as ret%rn on the prin(ipa& a$o%nts and interests 0ro$ her $one: $ar;et p&a(e$ents. Respondent ad$itted re(ei1in' MC No. ,,B,F- representin' the pro(eeds o0 her &oan (o1ered ): PN No. 95695. A&tho%'h the prin(ipa& a$o%nt o0 the &oan is P*6-,---.--, respondent on&: re(ei1ed P*5+,9*,.6-, )e(a%se the interest and hand&in' 0ee on the &oan transa(tion 2ere a&read: ded%(ted there0ro$. 3B+4 Sta$ps and notations at the )a(; o0 MC No. ,,B,F- re1ea& that it 2as deposited at the Ban; o0 the Phi&ippine Is&ands <BPI>, C%)ao Bran(h, in A((o%nt No. -*,9--6F,-,B. 3BF4 The (he(; a&so )ore the si'nat%re o0 respondent at the )a(;. 3BB4 And, a&tho%'h respondent 2o%&d &ater ad$it that she did si'n PN No. 95695 and re(ei1ed MC No. ,,B,F- as pro(eeds o0 the &oan [Link] to her ): petitioner Citi)an;, she (ontradi(ted herse&0 2hen, in an ear&ier testi$on:, she (&ai$ed that PN No. 95695 2as a$on' the PNs she e.e(%ted as si$%&ated &oans 2ith petitioner Citi)an;. 3B84 Respondent denied e1er re(ei1in' MCs No. ,,-F-* and ,,+5+F. #o2e1er, (onsiderin' that the said (he(;s 2ere (rossed 0or pa:ee@s a((o%nt on&:, and that the: 2ere a(t%a&&: deposited, (&eared, and paid, then the pres%$ption 2o%&d )e that the said (he(;s 2ere proper&: deposited to the a((o%nt o0 respondent, 2ho 2as (&ear&: na$ed the pa:ee in the (he(;s. Respondent@s )are a&&e'ations that she did not re(ei1e the t2o (he(;s 0ai& to (on1in(e this Co%rt, 0or to s%stain her, 2o%&d )e 0or this Co%rt to (on(&%de that an irre'%&arit: had o((%rred so$e2here 0ro$ the ti$e o0 the iss%an(e o0 the said (he(;s, to their deposit, (&earan(e, and pa:$ent, and 2hi(h 2o%&d ha1e in1o&1ed not on&: petitioner Citi)an;, )%t a&so BPI, 2hi(h a((epted the (he(;s 0or deposit, and the Centra& Ban; o0 the Phi&ippines, 2hi(h (&eared the (he(;s. It 0a&&s %pon the respondent to o1er(o$e or disp%te the pres%$ption that the (rossed (he(;s 2ere iss%ed, a((epted 0or deposit, (&eared, and paid 0or ): the )an;s in1o&1ed 0o&&o2in' the ordinar: (o%rse o0 their )%siness. The $ere 0a(t that MCs No. ,,-F-* and ,,+5+F do not )ear respondent@s si'nat%re at the )a(; does not ne'ate deposit thereo0 in her a((o%nt. The &ia)i&it: 0or the &a(; o0 indorse$ent on the MCs no &on'er 0a&& on petitioner Citi)an;, )%t on the )an; 2ho re(ei1ed the sa$e 0or deposit, in this (ase, BPI C%)ao Bran(h. On(e a'ain, it $%st )e noted that the MCs 2ere (rossed, 0or pa:ee@s a((o%nt on&:, and the pa:ee na$ed in )oth (he(;s 2as none other than respondent. The (rossin' o0 the MCs 2as a&read: a 2arnin' to BPI to re(ei1e said (he(;s 0or deposit on&: in respondent@s a((o%nt. It 2as %p to BPI to 1eri0: 2hether it 2as re(ei1in' the (rossed MCs in a((ordan(e 2ith the instr%(tions on the 0a(e thereo0. I0, indeed, the MCs 2ere deposited in a((o%nts other than respondent@s, then the respondent 2o%&d ha1e a (a%se o0 a(tion a'ainst BPI.38-4 BPI 0%rther sta$ped its '%arantee on the )a(; o0 the (he(;s to the e00e(t that, CA&& prior endorse$ent andNor !a(; o0 endorse$ent '%aranteed.D Th%s, BPI )e(a$e the indorser o0 the MCs, and ass%$ed a&& the 2arranties o0 an indorser, 38*4 spe(i0i(a&&:, that the (he(;s 2ere 'en%ine and in a&& respe(ts 2hat the: p%rported to )eK that it had a 'ood tit&e to the (he(;sK that a&& prior parties had (apa(it: to (ontra(tK and that the (he(;s 2ere, at the ti$e o0 their indorse$ent, 1a&id and s%)sistin'. 38,4 So e1en i0 the MCs deposited ): BPIVs (&ient, 2hether it )e ): respondent herse&0 or so$e other person, &a(;ed the ne(essar: indorse$ent, BPI, as the (o&&e(tin' )an;, is )o%nd ): its 2arranties as an indorser and (annot set %p the de0ense o0 &a(; o0 indorse$ent as a'ainst petitioner Citi)an;, the dra2ee )an;.3894 =%rther$ore, respondent@s )are and %ns%)stantiated denia& o0 re(eipt o0 the MCs in A%estion and their deposit in her a((o%nt is rendered s%spe(t 2hen MC No. ,,-F-* 2as a(t%a&&: deposited in A((o%nt No. -*,9--6F,-,B o0 BPI C%)ao Bran(h, the 1er: sa$e a((o%nt in 2hi(h MC No. ,,B,F- <2hi(h respondent ad$itted to re(ei1in' as pro(eeds o0 her &oan 0ro$ petitioner Citi)an;>, and MCs No. ,,B,-9,

,,B96F, and ,,B5-- <2hi(h respondent ad$itted to re(ei1in' as pro(eeds 0ro$ her $one: $ar;et p&a(e$ents> 2ere deposited. !i;e2ise, MC No. ,,+5+F 2as deposited in A((o%nt No. -*,*---,-59 o0 BPI C%)ao Bran(h, to 2hi(h MCs No. ,,+,B6 and ,,+598 <2hi(h respondent ad$itted to re(ei1in' as pro(eeds 0ro$ her $one: $ar;et p&a(e$ents> 2ere deposited. It is an apparent (ontradi(tion 0or respondent to (&ai$ ha1in' re(ei1ed the pro(eeds o0 (he(;s deposited in an a((o%nt, and then den: re(ei1in' the pro(eeds o0 another (he(; deposited in the 1er: sa$e a((o%nt. Another in(onsisten(: in respondent@s denia& o0 re(eipt o0 MC No. ,,+5+F and her deposit o0 the sa$e in her a((o%nt, is her presentation o0 [Link])it C###,D a pro1isiona& re(eipt 2hi(h 2as s%pposed to pro1e that respondent t%rned o1er P6--,---.-- to Mr. Tan o0 petitioner Citi)an;, that the said a$o%nt 2as sp&it into three $one: $ar;et p&a(e$ents, and that MC No. ,,+5+F represented the ret%rn on her in1est$ent 0ro$ one o0 these p&a(e$ents. 3854 Be(a%se o0 her [Link])it C###,D respondent e00e(ti1e&: ad$itted re(eipt o0 MC No. ,,+5+F, a&tho%'h 0or reasons other than as pro(eeds o0 a &oan. Neither (an this Co%rt 'i1e (reden(e to respondent@s (ontention that the notations on the MCs, statin' that the: 2ere the pro(eeds o0 parti(%&ar PNs, 2ere not there 2hen she re(ei1ed the (he(;s and that the notations appeared to )e 2ritten ): a t:pe2riter di00erent 0ro$ that %sed to 2rite the other in0or$ation on the (he(;s. On(e $ore, respondent@s a&&e'ations 2ere %n(orro)orated ): an: other e1iden(e. #er and her (o%nse&@s o)ser1ation that the notations on the MCs appear to )e 2ritten ): a t:pe2riter di00erent 0ro$ that %sed to 2rite the other in0or$ation on the (he(;s hard&: (on1in(es this Co%rt (onsiderin' that it (onstit%tes a $ere opinion on the appearan(e o0 the notation ): a 2itness 2ho does not possess the ne(essar: [Link] on the $atter. In addition, the notations on the MCs 2ere 2ritten %sin' )oth (apita& and s$a&& &etters, 2hi&e the other in0or$ation on the (he(;s 2ere 2ritten %sin' (apita& &etters on&:, s%(h di00eren(e (o%&d easi&: (on0%se an %ntrained e:e and &ead to a hast: (on(&%sion that the: 2ere 2ritten ): di00erent t:pe2riters. Respondent@s testi$on:, that )ased on her [Link](e transa(tin' 2ith )an;s, the MCs 2ere not s%pposed to in(&%de notations on the p%rpose 0or 2hi(h the (he(;s 2ere iss%ed, a&so deser1es s(ant (onsideration. Ghi&e respondent $a: ha1e e.tensi1e [Link](e dea&in' 2ith )an;s, it sti&& does not A%a&i0: her as a (o$petent 2itness on )an;in' pro(ed%res and pra(ti(es. #er testi$on: on this $atter is e1en )e&ied ): the 0a(t that the other MCs iss%ed ): petitioner Citi)an; <2hen it 2as sti&& na$ed =irst Nationa& Cit: Ban;> and ): petitioner =NCB =inan(e, the [Link](e and 1a&idit: o0 2hi(h 2ere not disp%ted ): respondent, a&so )ear si$i&ar notations that state the reason 0or 2hi(h the: 2ere iss%ed. Respondent presented se1era& $ore pie(es o0 e1iden(e to s%)stantiate her (&ai$ that she re(ei1ed MCs No. ,,+,B6, ,,+598, ,,+5+F, ,,+-6F, ,,B96F, and ,,B5--, not as pro(eeds o0 her &oans 0ro$ petitioner Citi)an;, )%t as the ret%rn o0 the prin(ipa& a$o%nts and pa:$ent o0 interests 0ro$ her $one: $ar;et p&a(e$ents 2ith petitioners. Part o0 respondent@s [Link])its 2ere persona& (he(;s 3864 dra2n ): respondent on her a((o%nt 2ith =eati Ban; L Tr%st Co., 2hi(h she a&&e'ed&: in1ested in separate $one: $ar;et p&a(e$ents 2ith )oth petitioners, the ret%rns 0ro$ 2hi(h 2ere paid to her 1ia MCs No. ,,+,B6 and ,,B5--. Yet, to this Co%rt, the persona& (he(;s on&: $ana'ed to esta)&ish respondent@s iss%an(e thereo0, )%t there 2as nothin' on the 0a(e o0 the (he(;s that 2o%&d re1ea& the p%rpose 0or 2hi(h the: 2ere iss%ed and that the: 2ere a(t%a&&: in1ested in $one: $ar;et p&a(e$ents as respondent (&ai$ed. Respondent 0%rther s%)$itted hand2ritten notes that p%rported&: (o$p%ted and presented the ret%rns on her $one: $ar;et p&a(e$ents, (orrespondin' to the a$o%nt stated in the MCs she re(ei1ed 0ro$ petitioner Citi)an;. [Link])it C###-

*D38+4 2as a hand2ritten note, 2hi(h respondent attri)%ted to Mr. Tan o0 petitioner Citi)an;, sho2in' the )rea;do2n o0 her BPI Che(; 0or P6--,---.-- into three di00erent $one: $ar;et p&a(e$ents 2ith petitioner Citi)an;. This Co%rt, ho2e1er, noti(ed se1era& 0a(tors 2hi(h render the note hi'h&: s%spe(t. One, it 2as 2ritten on the re1ersed side o0 Pro1isiona& Re(eipt No. *,F,5 o0 petitioner Citi)an; 2hi(h )ore the initia&s o0 Mr. Tan a(;no2&ed'in' re(eipt o0 respondent@s BPI Che(; No. *,-8B8 0or P6--,---.--K )%t the initia&s on the hand2ritten note appeared to )e that o0 Mr. Bo)): Mendo?a o0 petitioner =NCB =inan(e. 38F4 Se(ond, a((ordin' to Pro1isiona& Re(eipt No. *,F,5, BPI Che(; No. *,-8B8 0or P6--,---.-- 2as s%pposed to )e in1ested in three $one: $ar;et p&a(e$ents 2ith petitioner Citi)an; 0or the period o0 +- da:s. Sin(e a&& these $one: $ar;et p&a(e$ents 2ere $ade thro%'h one (he(; deposited on the sa$e da:, *- No1e$)er *8FB, it $ade no sense that the hand2ritten note at the )a(; o0 Pro1isiona& Re(eipt No. *,F,5 pro1ided 0or di00erent dates o0 $at%rit: 0or ea(h o0 the $one: $ar;et p&a(e$ents < i.e., *+ No1e$)er *8FB, *F "an%ar: *8F8, and ,* No1e$)er *8FB>, and s%(h dates did not (orrespond to the +- da: p&a(e$ent period stated on the 0a(e o0 the pro1isiona& re(eipt. And third, the prin(ipa& a$o%nts o0 the $one: $ar;et p&a(e$ents as stated in the hand2ritten note H P*56,---.--, P*56,---.-- and P,5,,---.-- H tota&ed P69,,---.--, and 2as o)1io%s&: in e.(ess o0 the P6--,---.-- a(;no2&ed'ed on the 0a(e o0 Pro1isiona& Re(eipt No. *,F,5. [Link])its CIIID and CIII-*,D the 0ront and )an; pa'es o0 a hand2ritten note o0 Mr. Bo)): Mendo?a o0 petitioner =NCB =inan(e, 38B4 a&so did not deser1e $%(h e1identiar: 2ei'ht, and this Co%rt (annot re&: on the tr%th and a((%ra(: o0 the (o$p%tations presented therein. Mr. Mendo?a 2as not presented as a 2itness d%rin' the tria& )e0ore the RTC, so that the do(%$ent 2as not proper&: a%thenti(ated nor its (ontents s%00i(ient&: e.p&ained. No one 2as a)&e to (o$petent&: identi0: 2hether the initia&s as appearin' on the note 2ere a(t%a&&: Mr. Mendo?a@s. A&so, 'oin' ): the in0or$ation on the 0ront pa'e o0 the note, this Co%rt o)ser1es that pa:$ent o0 respondent@s a&&e'ed $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e 2ere $ade %sin' Cit:tr%st Che(;sK the MCs in A%estion, in(&%din' MC No. ,,B-6F, 2ere iss%ed ): petitioner Citi)an;. A&tho%'h Cit:tr%st <0or$er&: =eati Ban; L Tr%st Co.>, petitioner =NCB =inan(e, and petitioner Citi)an; $a: )e a00i&iates o0 one another, the: ea(h re$ained separate and distin(t (orporations, ea(h ha1in' its o2n 0inan(ia& s:ste$ and re(ords. Th%s, this Co%rt (annot si$p&: ass%$e that one (orporation, s%(h as petitioner Citi)an; or Cit:tr%st, (an iss%e a (he(; to dis(har'e an o)&i'ation o0 petitioner =NCB =inan(e. It sho%&d )e re(a&&ed that 2hen petitioner =NCB =inan(e paid 0or respondent@s $one: $ar;et p&a(e$ents, (o1ered ): its PNs No. B*+F and B*+8, as 2e&& as PNs No. ,-*9B and ,-*98, petitioner =NCB =inan(e iss%ed its o2n (he(;s. As a &ast point on this $atter, i0 respondent tr%&: had $one: $ar;et p&a(e$ents 2ith petitioners, then these 2o%&d ha1e )een e1iden(ed ): PNs iss%ed ): either petitioner Citi)an; or petitioner =NCB =inan(e, a(;no2&ed'in' the prin(ipa& a$o%nts o0 the in1est$ents, and statin' the app&i(a)&e interest rates, as 2e&& as the dates o0 their o0 iss%an(e and $at%rit:. A0ter respondent had so $eti(%&o%s&: re(onstr%(ted her other $one: $ar;et p&a(e$ents 2ith petitioners and (onso&idated the do(%$entar: e1iden(e thereon, she (a$e s%rprisin'&: short o0 o00erin' si$i&ar detai&s and s%)stantiation 0or these parti(%&ar $one: $ar;et p&a(e$ents. Sin(e this Co%rt is satis0ied that respondent indeed re(ei1ed the pro(eeds o0 the 0irst set o0 PNs, then it pro(eeds to ana&:?e her e1iden(e o0 pa:$ent thereo0. In s%pport o0 respondent@s assertion that she had a&read: paid 2hate1er &oans she $a: ha1e had 2ith petitioner Citi)an;, she presented as e1iden(e Pro1isiona& Re(eipts No. *85F*, dated ** A%'%st *8FB, and No. *,F,9, dated *-

No1e$)er *8FB, )oth o0 petitioner Citi)an; and si'ned ): Mr. Tan, 0or the a$o%nts o0 P6--,F55.-- and P6--,---.--, respe(ti1e&:. Ghi&e these pro1isiona& re(eipts did state that Mr. Tan, on )eha&0 o0 petitioner Citi)an;, re(ei1ed respondent@s (he(;s as pa:$ent 0or her &oans, the: 0ai&ed to spe(i0i(a&&: identi0: 2hi(h &oans 2ere a(t%a&&: paid. Petitioner Citi)an; 2as a)&e to present e1iden(e that respondent had e.e(%ted se1era& PNs in the :ears *8FB and *8F8 to (o1er the &oans she se(%red 0ro$ the said )an;. Petitioner Citi)an; did ad$it that respondent 2as a)&e to pa: 0or so$e o0 these PNs, and 2hat it identi0ied as the 0irst and se(ond sets o0 PNs 2ere on&: those 2hi(h re$ained %npaid. It th%s )e(a$e in(%$)ent %pon respondent to pro1e that the (he(;s re(ei1ed ): Mr. Tan 2ere a(t%a&&: app&ied to the PNs in either the 0irst or se(ond setK a 0a(t that, %n0ort%nate&:, (annot )e deter$ined 0ro$ the pro1isiona& re(eipts s%)$itted ): respondent sin(e the: on&: 'enera&&: stated that the (he(;s re(ei1ed ): Mr. Tan 2ere pa:$ent 0or respondent@s &oans. Mr. Tan, in his deposition, 0%rther e.p&ained that pro1isiona& re(eipts 2ere iss%ed 2hen pa:$ent to the )an; 2as $ade %sin' (he(;s, sin(e the (he(;s 2o%&d sti&& )e s%)Ee(t to (&earin'. The p%rpose 0or the pro1isiona& re(eipts 2as $ere&: to a(;no2&ed'e the de&i1er: o0 the (he(;s to the possession o0 the )an;, )%t not :et o0 pa:$ent.3884 This )an; pra(ti(e 0inds &e'iti$a(: in the prono%n(e$ent o0 this Co%rt that a (he(;, 2hether an MC or an ordinar: (he(;, is not &e'a& tender and, there0ore, (annot (onstit%te 1a&id tender o0 pa:$ent. In P ilippine (irlines, %nc. v. Court of (ppeals, 3*--4 this Co%rt e&%(idated that: Sin(e a ne'otia)&e instr%$ent is on&: a s%)stit%te 0or $one: and not $one:, the de&i1er: o0 s%(h an instr%$ent does not, ): itse&0, operate as pa:$ent <Se(. *B8, A(t ,-9* on Ne's. Insts.K Art. *,58, Ci1i& CodeK Br:an !andon Co. 1. A$eri(an Ban;, F Phi&. ,66K Tan S%n(o, 1. Santos, 8 Phi&. 55K ,* R.C.!. +-, +*>. A (he(;, 2hether a $ana'erVs (he(; or ordinar: (he(;, is not &e'a& tender, and an o00er o0 a (he(; in pa:$ent o0 a de)t is not a 1a&id tender o0 pa:$ent and $a: )e re0%sed re(eipt ): the o)&i'ee or (reditor. Mere de&i1er: o0 (he(;s does not dis(har'e the o)&i'ation %nder a E%d'$ent. The o)&i'ation is not [Link]'%ished and re$ains s%spended %nti& the pa:$ent ): (o$$er(ia& do(%$ent is a(t%a&&: rea&i?ed <Art. *,58, Ci1i& Code, par. 9>. In the (ase at )ar, the iss%an(e o0 an o00i(ia& re(eipt ): petitioner Citi)an; 2o%&d ha1e )een dependent on 2hether the (he(;s de&i1ered ): respondent 2ere a(t%a&&: (&eared and paid 0or ): the dra2ee )an;s. As 0or PN No. 95695, respondent asserted pa:$ent thereo0 at t2o separate instan(es ): t2o di00erent $eans. In her 0or$a& o00er o0 [Link])its, respondent s%)$itted a deposit s&ip o0 petitioner Citi)an;, dated ** A%'%st *8FB, e1iden(in' the deposit o0 BPI Che(; No. 6FB6 0or P*6-,---.--.3*-*4 In her =or$a& O00er o0 /o(%$entar: [Link])its, dated F "%&: *8B8, respondent stated that the p%rpose 0or the presentation o0 the said deposit s&ip 2as to pro1e that she a&read: paid her &oan (o1ered ): PN No. 95695.3*-,4 In her testi$on: )e0ore the RTC three :ears &ater, on ,B No1e$)er *88*, she (han'ed her stor:. This ti$e she narrated that the &oan (o1ered ): PN No. 95695 2as se(%red ): her $one: $ar;et p&a(e$ent 2ith petitioner =NCB =inan(e, and 2hen she 0ai&ed to pa: the said PN 2hen it )e(a$e d%e, the se(%rit: 2as app&ied to the &oan, there0ore, the &oan 2as (onsidered paid. 3*-94 Gi1en the 0ore'oin', respondent@s assertion o0 pa:$ent o0 PN No. 95695 is [Link]$e&: d%)io%s. A((ordin' to petitioner Citi)an;, the PNs in the se(ond set, e.(ept 0or PN No. 95695, 2ere $ere rene2a&s o0 the %npaid PNs in the 0irst set, 2hi(h 2as 2h: the PNs

stated that the: 2ere 0or the p%rpose o0 &iA%idatin' [Link]' o)&i'ations. PN No. 95695, ho2e1er, 2hi(h 2as part o0 the 0irst set, 2as sti&& 1a&id and s%)sistin' and so it 2as in(&%ded in the se(ond set 2itho%t need 0or its rene2a&, and it sti&& )ein' the ori'ina& PN 0or that parti(%&ar &oan, its stated p%rpose 2as 0or persona& in1est$ent. 3*-54 Respondent essentia&&: ad$itted e.e(%tin' the se(ond set o0 PNs, )%t the: 2ere on&: $eant to (o1er si$%&ated &oans. Mr. Tan s%pposed&: (on1in(ed her that her pendin' &oan app&i(ation 2ith /BP 2o%&d ha1e a 'reater (han(e o0 )ein' appro1ed i0 the: $ade it appear that respondent %r'ent&: needed the $one: )e(a%se petitioner Citi)an; 2as a&read: de$andin' pa:$ent 0or her si$%&ated &oans. Respondent@s de0ense o0 si$%&ated &oans to es(ape &ia)i&it: 0or the se(ond set o0 PNs is tr%&: a no1e& one. It is re'retta)&e, ho2e1er, that she 2as %na)&e to s%)stantiate the sa$e. Yet a'ain, respondent@s 1ersion o0 e1ents is tota&&: )ased on her o2n %n(orro)orated testi$on:. The notations on the se(ond set o0 PNs, that the: 2ere non-ne'otia)&e si$%&ated notes, 2ere ad$itted&: $ade ): respondent herse&0 and 2ere, th%s, se&0-ser1in'. EA%a&&: se&0-ser1in' 2as respondent@s &etter, 2ritten on F O(to)er *8B6, or $ore than si. :ears a0ter the e.e(%tion o0 the se(ond set o0 PNs, in 2hi(h she de$anded ret%rn o0 the si$%&ated or 0i(titio%s PNs, to'ether 2ith the &etters re&atin' thereto, 2hi(h Mr. Tan p%rported&: as;ed her to e.e(%te. Respondent 0%rther 0ai&ed to present an: proo0 o0 her a&&e'ed &oan app&i(ation 2ith the /BP, and o0 an: (ir(%$stan(e or (orresponden(e 2herein the si$%&ated or 0i(titio%s PNs 2ere indeed %sed 0or their s%pposed p%rpose. In (ontrast, petitioner Citi)an;, as s%pported ): the testi$onies o0 its o00i(ers and a1ai&a)&e do(%$entation, (onsistent&: treated the said PNs as re'%&ar &oans H a((epted, appro1ed, and paid in the ordinar: (o%rse o0 its )%siness. The PNs e.e(%ted ): the respondent in 0a1or o0 petitioner Citi)an; to (o1er her &oans 2ere d%&:-0i&&ed o%t and si'ned, in(&%din' the dis(&os%re state$ent 0o%nd at the )a(; o0 the said PNs, in adheren(e to the Centra& Ban; reA%ire$ent to dis(&ose the 0%&& 0inan(e (har'es to a &oan 'ranted to )orro2ers. Mr. Tan, then an a((o%nt o00i(er 2ith the Mar;etin' /epart$ent o0 petitioner Citi)an;, testi0ied that he dea&t dire(t&: 2ith respondentK he 0a(i&itated the &oansK and the PNs, at &east in the se(ond set, 2ere si'ned ): respondent in his presen(e. 3*-64 Mr. P%Eeda, the o00i(er 2ho 2as pre1io%s&: in (har'e o0 &oans and p&a(e$ents, (on0ir$ed that the si'nat%res on the PNs 2ere 1eri0ied a'ainst respondent@s spe(i$en si'nat%re 2ith the )an;.3*-+4 Ms. Cristina /ondo:ano, 2ho 2or;ed at petitioner Citi)an; as a &oan pro(essor, 2as responsi)&e 0or )oo;in' respondent@s &oans. Boo;in' the &oans $eans re(ordin' it in the Genera& !ed'er. She e.p&ained the pro(ed%re 0or )oo;in' &oans, as 0o&&o2s: The a((o%nt o00i(er, in the Mar;etin' /epart$ent, dea&s dire(t&: 2ith the (&ients 2ho 2ish to )orro2 $one: 0ro$ petitioner Citi)an;. The Mar;etin' /epart$ent 2i&& 0or2ard a &oan )oo;in' (he(;&ist, to'ether 2ith the )orro2in' (&ient@s PNs and other s%pportin' do(%$ents, to the &oan pre-pro(essor, 2ho 2i&& (he(; 2hether the detai&s in the &oan )oo;in' (he(;&ist are the sa$e as those in the PNs. The do(%$ents are then sent to Si'nat%re Contro& 0or 1eri0i(ation o0 the (&ient@s si'nat%re in the PNs, a0ter 2hi(h, the: are ret%rned to the &oan pre-pro(essor, to )e 0or2arded 0ina&&: to the &oan pro(essor. The &oan pro(essor sha&& )oo; the &oan in the Genera& !ed'er, indi(atin' therein the (&ient na$e, &oan a$o%nt, interest rate, $at%rit: date, and the (orrespondin' PN n%$)er. Sin(e she )oo;ed respondent@s &oans persona&&:, Ms. /ondo:ano testi0ied that she sa2 the ori'ina& PNs. In *8B+, Att:. =ernande? o0 petitioner Citi)an; reA%ested her to prepare an a((o%ntin' o0 respondent@s &oans, 2hi(h she did, and 2hi(h 2as presented as [Link])it C*,-D 0or the

petitioners. The 0i'%res 0ro$ the said [Link])it 2ere (%&&ed 0ro$ the )oo;in's in the Genera& !ed'er, a 0a(t 2hi(h respondent@s (o%nse& 2as e1en 2i&&in' to stip%&ate. 3*-F4 Ms. Teresita G&orioso 2as an In1esti'ation and Re(on(i&e$ent C&er; at the Contro& /epart$ent o0 petitioner Citi)an;. She 2as presented ): petitioner Citi)an; to [Link]%nd on the $i(ro0i&$in' pro(ed%re at the )an;, sin(e $ost o0 the (opies o0 the PNs 2ere retrie1ed 0ro$ $i(ro0i&$. Mi(ro0i&$in' o0 the do(%$ents are a(t%a&&: done ): peop&e at the Operations /epart$ent. At the end o0 the da: or d%rin' the da:, the ori'ina& (opies o0 a&& )an; do(%$ents, not E%st those pertainin' to &oans, are $i(ro0i&$ed. She re0%ted the possi)i&it: that insertions (o%&d )e $ade in the $i(ro0i&$ )e(a%se the $i(ro0i&$ is inserted in a (assetteK the (assette is p&a(ed in the $i(ro0i&$ $a(hine 0or %seK at the end o0 the da:, the (assette is ta;en o%t o0 the $i(ro0i&$ $a(hine and p%t in a sa0e 1a%&tK and the (assette is ret%rned to the $a(hine on&: the 0o&&o2in' da: 0or %se, %nti& the spoo& is 0%&&. This is the $i(ro0i&$in' pro(ed%re 0o&&o2ed e1er:da:. Ghen the $i(ro0i&$ spoo& is a&read: 0%&&, the $i(ro0i&$ is de1e&oped, then sent to the Contro& /epart$ent, 2hi(h do%)&e (he(;s the (ontents o0 the $i(ro0i&$s a'ainst the entries in the Genera& !ed'er. The Contro& /epart$ent a&so (ond%(ts a rando$ (o$parison o0 the (ontents o0 the $i(ro0i&$s 2ith the ori'ina& do(%$entsK a rando$ re1ie2 o0 the (ontents is done on e1er: ro&e o0 $i(ro0i&$. 3*-B4 Ms. Renee R%)io 2or;ed 0or petitioner Citi)an; 0or ,- :ears. She rose 0ro$ the ran;s, initia&&: 2or;in' as a se(retar: in the Personne& Gro%pK then as a se(retar: to the Personne& Gro%p #eadK a Ser1i(e Assistant 2ith the Mar;etin' Gro%p, in *8F, to *8F5, dea&in' dire(t&: 2ith (orporate and indi1id%a& (&ients 2ho, a$on' other thin's, se(%red &oans 0ro$ petitioner Citi)an;K the #ead o0 the Co&&e(tion Gro%p o0 the =orei'n /epart$ent in *8F5 to *8F+K the #ead o0 the Mone: Trans0er Unit in *8F+ to *8FBK the #ead o0 the !oans and P&a(e$ents Unit %p to the ear&: *8B-sK and, therea0ter, she esta)&ished operations trainin' 0or petitioner Citi)an; in the AsiaPa(i0i( Re'ion responsi)&e 0or the trainin' o0 the o00i(ers o0 the )an;. She testi0ied on the standard &oan app&i(ation pro(ess at petitioner Citi)an;. A((ordin' to Ms. R%)io, the a((o%nt o00i(er or $ar;etin' person s%)$its a proposa& to 'rant a &oan to an indi1id%a& or (orporation. Petitioner Citi)an; has a 2or&d2ide po&i(: that reA%ires a (redit (o$$ittee, (o$posed o0 a $ini$%$ o0 three peop&e, 2hi(h 2o%&d appro1e the &oan and a$o%nt thereo0. There (an )e no instan(e 2hen on&: one o00i(er has the po2er to appro1e the &oan app&i(ation. Ghen the &oan is appro1ed, the a((o%nt o00i(er in (har'e 2i&& o)tain the (orrespondin' PNs 0ro$ the (&ient. The PNs are sent to the si'nat%re 1eri0ier 2ho 2o%&d 1a&idate the si'nat%res therein a'ainst those appearin' in the si'nat%re (ards pre1io%s&: s%)$itted ): the (&ient to the )an;. The Operations Unit 2i&& (he(; and re1ie2 the do(%$ents, in(&%din' the PNs, i0 it is a (&ean &oan, and se(%rities and deposits, i0 it is (o&&atera&i?ed. The &oan is then re(orded in the Genera& !ed'er. The !oans and P&a(e$ents /epart$ent 2i&& not )oo; the &oans 2itho%t the PNs. Ghen the PNs are &iA%idated, 2hether the: are paid or ro&&ed-o1er, the: are ret%rned to the (&ient.3*-84 Ms. R%)io 0%rther e.p&ained that she 2as 0a$i&iar 2ith respondent@s a((o%nts sin(e, 2hi&e she 2as sti&& the #ead o0 the !oan and P&a(e$ents Unit, she 2as as;ed ): Mr. Tan to prepare a &ist o0 respondent@s o%tstandin' o)&i'ations.3**-4 She th%s (a&(%&ated respondent@s o%tstandin' &oans, 2hi(h 2as sent as an atta(h$ent to Mr. Tan@s &etter to respondent, dated ,B Septe$)er *8F8, and presented )e0ore the RTC as [Link])its C95-BD and C95-C.D 3***4 !ast&:, the e.(han'e o0 &etters )et2een petitioner Citi)an; and respondent, as 2e&& as the &etters sent ): other peop&e 2or;in' 0or respondent, had (onsistent&: re(o'ni?ed that respondent o2ed petitioner Citi)an; $one:. In (onsideration o0 the 0ore'oin' dis(%ssion, this Co%rt 0inds that the preponderan(e o0 e1iden(e s%pports the [Link](e o0 the respondent@s &oans, in the prin(ipa& s%$ o0 P*,8,-,---.--, as o0 6 Septe$)er *8F8. Ghi&e it is 2e&&-sett&ed that the ter$ Cpreponderan(e o0 e1iden(eD sho%&d not )e 2ho&&: dependent on the n%$)er

o0 2itnesses, there are (ertain instan(es 2hen the n%$)er o0 2itnesses )e(o$e the deter$inin' 0a(tor H The preponderan(e o0 e1iden(e $a: )e deter$ined, %nder (ertain (onditions, ): the n%$)er o0 2itnesses testi0:in' to a parti(%&ar 0a(t or state o0 0a(ts. =or instan(e, one or t2o 2itnesses $a: testi0: to a 'i1en state o0 0a(ts, and si. or se1en 2itnesses o0 eA%a& (andor, 0airness, inte&&i'en(e, and tr%th0%&ness, and eA%a&&: 2e&& (orro)orated ): a&& the re$ainin' e1iden(e, 2ho ha1e no 'reater interest in the res%&t o0 the s%it, testi0: a'ainst s%(h state o0 0a(ts. Then the preponderan(e o0 e1iden(e is deter$ined ): the n%$)er o0 2itnesses. <Gi&(o. vs. #ines, *-- Tenn. 6,5, ++ A$. St. Rep., F+*.>3**,4 Best e1iden(e r%&e This Co%rt disa'rees in the prono%n(e$ent $ade ): the Co%rt o0 Appea&s s%$$ari&: dis$issin' the do(%$entar: e1iden(e s%)$itted ): petitioners )ased on its )road and indis(ri$inate app&i(ation o0 the )est e1iden(e r%&e. In 'enera&, the )est e1iden(e r%&e reA%ires that the hi'hest a1ai&a)&e de'ree o0 proo0 $%st )e prod%(ed. A((ordin'&:, 0or do(%$entar: e1iden(e, the (ontents o0 a do(%$ent are )est pro1ed ): the prod%(tion o0 the do(%$ent itse&0, 3**94 to the e.(&%sion o0 an: se(ondar: or s%)stit%tionar: e1iden(e.3**54 The )est e1iden(e r%&e has )een $ade part o0 the re1ised R%&es o0 Co%rt, R%&e *9-, Se(tion 9, 2hi(h reads H SEC. 9. )riginal document must $e produced* e+ceptions. H Ghen the s%)Ee(t o0 inA%ir: is the (ontents o0 a do(%$ent, no e1iden(e sha&& )e ad$issi)&e other than the ori'ina& do(%$ent itse&0, e.(ept in the 0o&&o2in' (ases: <a> Ghen the ori'ina& has )een &ost or destro:ed, or (annot )e prod%(ed in (o%rt, 2itho%t )ad 0aith on the part o0 the o00erorK <)> Ghen the ori'ina& is in the (%stod: or %nder the (ontro& o0 the part: a'ainst 2ho$ the e1iden(e is o00ered, and the &atter 0ai&s to prod%(e it a0ter reasona)&e noti(eK <(> Ghen the ori'ina& (onsists o0 n%$ero%s a((o%nts or other do(%$ents 2hi(h (annot )e e.a$ined in (o%rt 2itho%t 'reat &oss o0 ti$e and the 0a(t so%'ht to )e esta)&ished 0ro$ the$ is on&: the 'enera& res%&t o0 the 2ho&eK and <d> Ghen the ori'ina& is a p%)&i( re(ord in the (%stod: o0 a p%)&i( o00i(er or is re(orded in a p%)&i( o00i(e. As the a0ore-A%oted pro1ision states, the )est e1iden(e r%&e app&ies on&: 2hen the s%)Ee(t o0 the inA%ir: is the (ontents o0 the do(%$ent. The s(ope o0 the r%&e is $ore e.tensi1e&: e.p&ained th%s H B%t e1en 2ith respe(t to do(%$entar: e1iden(e, the )est e1iden(e r%&e app&ies on&: 2hen the content o0 s%(h do(%$ent is the s%)Ee(t o0 the inA%ir:. Ghere the iss%e is on&: as to 2hether s%(h do(%$ent 2as a(t%a&&: e.e(%ted, or [Link], or on the (ir(%$stan(es re&e1ant to or s%rro%ndin' its e.e(%tion, the )est e1iden(e r%&e does not app&: and testi$onia& e1iden(e is ad$issi)&e < , Moran, op. cit., pp. -./..* 0 Martin, op. cit., p. -1>. An: other s%)stit%tionar:

e1iden(e is &i;e2ise ad$issi)&e 2itho%t need 0or a((o%ntin' 0or the ori'ina&. Th%s, 2hen a do(%$ent is presented to pro1e its [Link](e or (ondition it is o00ered not as do(%$entar:, )%t as rea&, e1iden(e. Paro& e1iden(e o0 the 0a(t o0 e.e(%tion o0 the do(%$ents is a&&o2ed <#ernae", et al. vs. Mc!rat , etc., et al., 23 P il ,., >. . . . 3**64 In 4strada v. Desierto,3**+4 this Co%rt had o((asion to r%&e that H It is tr%e that the Co%rt re&ied not %pon the ori'ina& )%t on&: (op: o0 the (ngara Diary as p%)&ished in the Phi&ippine /ai&: InA%irer on =e)r%ar: 5-+, ,--*. In doin' so, t e Court, did not, owever, violate t e $est evidence rule. 5igmore, in his )oo; on e1iden(e, states that: CProd%(tion o0 the ori'ina& $a: )e dispensed 2ith, in the tria& (o%rt@s dis(retion, 2hene1er in the (ase in hand t e opponent does not $ona fide dispute t e contents of t e document and no other %se0%& p%rpose 2i&& )e ser1ed ): reA%irin' prod%(tion.,5 C. . . . CIn se1era& Canadian pro1in(es, the prin(ip&e o0 %na1ai&a)i&it: has )een a)andoned, 0or (ertain do(%$ents in 2hi(h ordinari&: no rea& disp%te arised. This $eas%re is a sensi)&e and pro'ressi1e one and deser1es %ni1ersa& adoption <post, se(. *,99>. Its essentia& 0eat%re is that a copy may $e used unconditionally , if t e opponent as $een given an opportunity to inspect it. D <E$phasis s%pp&ied.> This Co%rt did not 1io&ate the )est e1iden(e r%&e 2hen it (onsidered and 2ei'hed in e1iden(e the photo(opies and $i(ro0i&$ (opies o0 the PNs, MCs, and &etters s%)$itted ): the petitioners to esta)&ish the [Link](e o0 respondent@s &oans. The ter$s or (ontents o0 these do(%$ents 2ere ne1er the point o0 (ontention in the Petition at )ar. It 2as respondent@s position that the PNs in the 0irst set <2ith the e.(eption o0 PN No. 95695> ne1er [Link], 2hi&e the PNs in the se(ond set <a'ain, e.(&%din' PN No. 95695> 2ere $ere&: e.e(%ted to (o1er si$%&ated &oan transa(tions. As 0or the MCs representin' the pro(eeds o0 the &oans, the respondent either denied re(eipt o0 (ertain MCs or ad$itted re(eipt o0 the other MCs )%t 0or another p%rpose. Respondent 0%rther ad$itted the &etters she 2rote persona&&: or thro%'h her representati1es to Mr. Tan o0 petitioner Citi)an; a(;no2&ed'in' the &oans, e.(ept that she (&ai$ed that these &etters 2ere E%st $eant to ;eep %p the r%se o0 the si$%&ated &oans. Th%s, respondent A%estioned the do(%$ents as to their [Link](e or e.e(%tion, or 2hen the 0or$er is ad$itted, as to the p%rpose 0or 2hi(h the do(%$ents 2ere e.e(%ted, $atters 2hi(h are, %ndo%)ted&:, [Link]& to the do(%$ents, and 2hi(h had nothin' to do 2ith the (ontents thereo0. A&ternati1e&:, e1en i0 it is 'ranted that the )est e1iden(e r%&e sho%&d app&: to the e1iden(e presented ): petitioners re'ardin' the [Link](e o0 respondent@s &oans, it sho%&d )e )orne in $ind that the r%&e ad$its o0 the 0o&&o2in' e.(eptions %nder R%&e *9-, Se(tion 6 o0 the re1ised R%&es o0 Co%rt H SEC. 6. 5 en t e original document is unavaila$le. H Ghen the ori'ina& do(%$ent has )een &ost or destro:ed, or (annot

)e prod%(ed in (o%rt, the o00eror, %pon proo0 o0 its e.e(%tion or [Link](e and the (a%se o0 its %na1ai&a)i&it: 2itho%t )ad 0aith on his part, $a: pro1e its (ontents ): a (op:, or ): a re(ita& o0 its (ontents in so$e a%thenti( do(%$ent, or ): the testi$on: o0 2itnesses in the order stated. The e.e(%tion or [Link](e o0 the ori'ina& (opies o0 the do(%$ents 2as esta)&ished thro%'h the testi$onies o0 2itnesses, s%(h as Mr. Tan, )e0ore 2ho$ $ost o0 the do(%$ents 2ere persona&&: e.e(%ted ): respondent. The ori'ina& PNs a&so 2ent thro%'h the 2ho&e &oan )oo;in' s:ste$ o0 petitioner Citi)an; H 0ro$ the a((o%nt o00i(er in its Mar;etin' /epart$ent, to the pre-pro(essor, to the si'nat%re 1eri0ier, )a(; to the pre-pro(essor, then to the pro(essor 0or )oo;in'. 3**F4 The ori'ina& PNs 2ere seen ): Ms. /ondo:ano, the pro(essor, 2ho re(orded the$ in the Genera& !ed'er. Mr. P%Eeda persona&&: sa2 the ori'ina& MCs, pro1in' respondent@s re(eipt o0 the pro(eeds o0 her &oans 0ro$ petitioner Citi)an;, 2hen he he&ped Att:s. C&eo0e and =ernande?, the )an;@s &e'a& (o%nse&s, to re(onstr%(t the re(ords o0 respondent@s &oans. The ori'ina& MCs 2ere presented to Att:. C&eo0e 2ho %sed the sa$e d%rin' the pre&i$inar: in1esti'ation o0 the (ase, so$eti$e in :ears *8B+-*8BF. The ori'ina& MCs 2ere s%)seA%ent&: t%rned o1er to the Contro& and In1esti'ation /i1ision o0 petitioner Citi)an;.3**B4 It 2as on&: petitioner =NCB =inan(e 2ho (&ai$ed that the: &ost the ori'ina& (opies o0 the PNs 2hen it $o1ed to a ne2 o00i(e. Citi)an; did not $a;e a si$i&ar (ontentionK instead, it e.p&ained that the ori'ina& (opies o0 the PNs 2ere ret%rned to the )orro2er %pon &iA%idation o0 the &oan, either thro%'h pa:$ent or ro&&o1er. Petitioner Citi)an; pro00ered the e.(%se that the: 2ere sti&& &oo;in' 0or the do(%$ents in their stora'e or 2areho%se to e.p&ain the de&a: and di00i(%&t: in the retrie1a& thereo0, )%t not their a)sen(e or &oss. The ori'ina& do(%$ents in this (ase, s%(h as the MCs and &etters, 2ere destro:ed and, th%s, %na1ai&a)&e 0or presentation )e0ore the RTC on&: on F O(to)er *8BF, 2hen a 0ire )ro;e o%t on the F th 0&oor o0 the o00i(e )%i&din' o0 petitioner Citi)an;. There is no sho2in' that the 0ire 2as intentiona&&: set. The 0ire destro:ed re&e1ant do(%$ents, not E%st o0 the present (ase, )%t a&so o0 other (ases, sin(e the F th 0&oor ho%sed the Contro& and In1esti'ation /i1ision, in (har'e o0 ;eepin' the ne(essar: do(%$ents 0or (ases in 2hi(h petitioner Citi)an; 2as in1o&1ed. The 0ore'oin' 2o%&d ha1e )een s%00i(ient to a&&o2 the presentation o0 photo(opies or $i(ro0i&$ (opies o0 the PNs, MCs, and &etters ): the petitioners as se(ondar: e1iden(e to esta)&ish the [Link](e o0 respondent@s &oans, as an e.(eption to the )est e1iden(e r%&e. The i$pa(t o0 the /e(ision o0 the Co%rt o0 Appea&s in the /: (ase In its assai&ed prono%n(e$ent H /e(ision, the Co%rt o0 Appea&s $ade the 0o&&o2in'

Besides, Ge 0ind the de(&aration and (on(&%sions o0 this Co%rt in CA;*.R. CV No. +,9.< entit&ed 6ps. Dr. Ricardo 7. Dy and Rosalind ). Dy vs. City &an', 8.(., et al , pro$%&'ated on *6 "an%ar: *88-, as disturbin. ta;in' into (onsideration the si$i&arities o0 the 0ra%d, $a(hinations, and de(eits e$p&o:ed ): the de0endant-appe&&ant Citi)an; and its A((o%nt Mana'er =ran(is(o Tan.

Gorth: o0 note is the 0a(t that O%r de(&arations and (on(&%sions a'ainst Citi)an; and the person o0 =ran(is(o Tan in CA; *.R. CV No. +,9.< 2ere a00ir$ed in toto ): the #i'hest Ma'istrate in aMinute Resolution dated ,, A%'%st *88- entit&ed Citi$an', 8.(., vs. Court of (ppeals, G.R. 8996-. As the 0a(t%a& $i&ie% o0 the present appea& (reated reasona)&e do%)ts as to 2hether the nine <8> Pro$issor: Notes 2ere indeed e.e(%ted 2ith (onsiderations, the do%)ts, (o%p&ed ): the 0indin's and (on(&%sions o0 this Co%rt in CA;*.R. CV No. +,9.< and the S%pre$e Co%rt in *.R. No. 9..,:. sho%&d )e (onstr%ed a'ainst herein de0endants-appe&&ants Citi)an; and =NCB =inan(e. Ghat this Co%rt tr%&: 0inds dist%r)in' is the si'ni0i(an(e 'i1en ): the Co%rt o0 Appea&s in its assai&ed /e(ision to the /e(ision 3**84 o0 its Third /i1ision in CA-G.R. C7 No. *6895 <or the /: (ase>, 2hen there is an a)so&%te &a(; o0 &e'a& )asis 0or doin' s%(h. A&tho%'h petitioner Citi)an; and its o00i(er, Mr. Tan, 2ere a&so in1o&1ed in the /: (ase, that is a)o%t the on&: (onne(tion )et2een the /: (ase and the one at )ar. Not on&: did the /: (ase ta(;&e transa(tions )et2een parties other than the parties present&: )e0ore this Co%rt, )%t the transa(tions are a)so&%te&: independent and %nre&ated to those in the instant Petition. In the /: (ase, Se1erino Ch%a Caedo $ana'ed to o)tain &oans 0ro$ herein petitioner Citi)an; a$o%ntin' to PF,---,---.--, se(%red to the [Link] o0 P6,---,---.-- ): a Third Part: Rea& Estate Mort'a'e o0 the properties o0 Caedo@s a%nt, Rosa&ind /:. It t%rned o%t that Rosa&ind /: and her h%s)and 2ere %na2are o0 the said &oans and the $ort'a'e o0 their properties. The transa(tions 2ere (arried o%t e.(&%si1e&: )et2een Caedo and Mr. Tan o0 petitioner Citi)an;. The RTC 0o%nd Mr. Tan '%i&t: o0 0ra%d 0or his parti(ipation in the A%estiona)&e transa(tions, essentia&&: )e(a%se he a&&o2ed Caedo to ta;e o%t the si'nat%re (ards, 2hen these sho%&d ha1e )een si'ned ): the /: spo%ses persona&&: )e0ore hi$. A&tho%'h the /: spo%ses@ si'nat%res in the PNs and Third Part: Rea& Estate Mort'a'e 2ere 0or'ed, the: 2ere appro1ed ): the si'nat%re 1eri0ier sin(e the si'nat%re (ards a'ainst 2hi(h the: 2ere (o$pared to 2ere a&so 0or'ed. Neither the RTC nor the Co%rt o0 Appea&s, ho2e1er, (ate'ori(a&&: de(&ared Mr. Tan persona&&: responsi)&e 0or the 0or'eries, 2hi(h, in the narration o0 the 0a(ts, 2ere $ore &i;e&: (o$$itted ): Caedo. In the Petition at )ar, respondent dea&t 2ith Mr. Tan dire(t&:, there 2as no third part: in1o&1ed 2ho (o%&d ha1e perpetrated an: 0ra%d or 0or'er: in her &oan transa(tions. A&tho%'h respondent atte$pted to raise s%spi(ion as to the a%thenti(it: o0 her si'nat%res on (ertain do(%$ents, these 2ere nothin' $ore than na;ed a&&e'ations 2ith no (orro)oratin' e1iden(eK 2orse, e1en her o2n a&&e'ations 2ere rep&ete 2ith in(onsisten(ies. She (o%&d not e1en esta)&ish in 2hat $anner or %nder 2hat (ir(%$stan(es the 0ra%d or 0or'er: 2as (o$$itted, or ho2 Mr. Tan (o%&d ha1e )een dire(t&: responsi)&e 0or the sa$e. Ghi&e the Co%rt o0 Appea&s (an ta;e E%di(ia& noti(e o0 the /e(ision o0 its Third /i1ision in the /: (ase, it sho%&d not ha1e 'i1en the said (ase $%(h 2ei'ht 2hen it rendered the assai&ed /e(ision, sin(e the 0or$er does not (onstit%te a pre(edent. The Co%rt o0 Appea&s, in the (ha&&en'ed /e(ision, did not app&: an: &e'a& ar'%$ent or prin(ip&e esta)&ished in the /: (ase )%t, rather, adopted the 0indin's therein o0 2ron'doin' or $is(ond%(t on the part o0 herein petitioner Citi)an; and Mr. Tan. An: 0indin' o0 2ron'doin' or $is(ond%(t as a'ainst herein petitioners sho%&d )e $ade

)ased on the 0a(t%a& )a(;'ro%nd and pie(es o0 e1iden(e s%)$itted in this (ase, not those in another (ase. It is apparent that the Co%rt o0 Appea&s too; E%di(ia& noti(e o0 the /: (ase not as a &e'a& pre(edent 0or the present (ase, )%t rather as e1iden(e o0 si$i&ar a(ts (o$$itted ): petitioner Citi)an; and Mr. Tan. A )asi( r%&e o0 e1iden(e, ho2e1er, states that, CE1iden(e that one did or did not do a (ertain thin' at one ti$e is not ad$issi)&e to pro1e that he did or did not do the sa$e or si$i&ar thin' at another ti$eK )%t it $a: )e re(ei1ed to pro1e a spe(i0i( intent or ;no2&ed'e, identit:, p&an, s:ste$, s(he$e, ha)it, (%sto$ or %sa'e, and the &i;e.D 3*,-4 The rationa&e 0or the r%&e is e.p&ained th%s H The r%&e is 0o%nded %pon reason, p%)&i( po&i(:, E%sti(e and E%di(ia& (on1enien(e. The 0a(t that a person has (o$$itted the sa$e or si$i&ar a(ts at so$e prior ti$e a00ords, as a 'enera& r%&e, no &o'i(a& '%arant: that he (o$$itted the a(t in A%estion. This is so )e(a%se, s%)Ee(ti1e&:, a $an@s $ind and e1en his $odes o0 &i0e $a: (han'eK and, o)Ee(ti1e&:, the (onditions %nder 2hi(h he $a: 0ind hi$se&0 at a 'i1en ti$e $a: &i;e2ise (han'e and th%s ind%(e hi$ to a(t in a di00erent 2a:. Besides, i0 e1iden(e o0 si$i&ar a(ts are to )e in1aria)&: ad$itted, the: 2i&& 'i1e rise to a $%&tip&i(it: o0 (o&&atera& iss%es and 2i&& s%)Ee(t the de0endant to s%rprise as 2e&& as (on0%se the (o%rt and pro&on' the tria&.3*,*4 The 0a(t%a& )a(;'ro%nds o0 the t2o (ases are so di00erent and %nre&ated that the /: (ase (annot )e %sed to pro1e spe(i0i( intent, ;no2&ed'e, identit:, p&an, s:ste$, s(he$e, ha)it, (%sto$ or %sa'e on the part o0 petitioner Citi)an; or its o00i(er, Mr. Tan, to de0ra%d respondent in the present (ase. IV $)e li5uidation of respondent9s outstandin. loans 2ere valid in so far as petitioner Citiban3 used respondent9s savin.s a--ount 2it) t)e ban3 and )er +one1 +ar3et pla-e+ents 2it) petitioner 'NC: 'inan-e; but [Link] and void in so far as petitioner Citiban3 used respondent9s dollar a--ounts 2it) Citiban3<Geneva. Sa1in's A((o%nt 2ith petitioner Citi)an; Co$pensation is a re(o'ni?ed $ode o0 [Link]'%ishin' o)&i'ations. Re&e1ant pro1isions o0 the Ci1i& Code pro1ides H Art. *,FB. Co$pensation sha&& ta;e p&a(e 2hen t2o persons, in their o2n ri'ht, are (reditors and de)tors o0 ea(h other. Art. *,F8. In order that (o$pensation $a: )e proper, it is ne(essar:K

<*> That ea(h one o0 the o)&i'ors )e )o%nd prin(ipa&&:, and that he )e at the sa$e ti$e a prin(ipa& (reditor o0 the otherK <,> That )oth de)ts (onsist in a s%$ o0 $one:, or i0 the thin's d%e are (ons%$a)&e, the: )e o0 the sa$e ;ind, and a&so o0 the sa$e A%a&it: i0 the &atter has )een statedK <9> That the t2o de)ts )e d%eK <5> That the: )e &iA%idated and de$anda)&eK <6> That o1er neither o0 the$ there )e an: retention or (ontro1ers:, (o$$en(ed ): third persons and (o$$%ni(ated in d%e ti$e to the de)tor. There is &itt&e (ontro1ers: 2hen it (o$es to the ri'ht o0 petitioner Citi)an; to (o$pensate respondent@s o%tstandin' &oans 2ith her deposit a((o%nt. As a&read: 0o%nd ): this Co%rt, petitioner Citi)an; 2as the (reditor o0 respondent 0or her o%tstandin' &oans. At the sa$e ti$e, respondent 2as the (reditor o0 petitioner Citi)an;, as 0ar as her deposit a((o%nt 2as (on(erned, sin(e )an; deposits, 2hether [Link], sa1in's, or (%rrent, sho%&d )e (onsidered as si$p&e &oan or mutuum ): the depositor to the )an;in' instit%tion. 3*,,4 Both de)ts (onsist in s%$s o0 $one:. B: "%ne *8F8, a&& o0 respondent@s PNs in the se(ond set had $at%red and )e(a$e de$anda)&e, 2hi&e respondent@s sa1in's a((o%nt 2as de$anda)&e an:ti$e. Neither 2as there an: retention or (ontro1ers: o1er the PNs and the deposit a((o%nt (o$$en(ed ): a third person and (o$$%ni(ated in d%e ti$e to the de)tor (on(erned. Co$pensation ta;es p&a(e ): operation o0 &a2, 3*,94 there0ore, e1en in the a)sen(e o0 an [Link] a%thorit: 0ro$ respondent, petitioner Citi)an; had the ri'ht to e00e(t, on ,6 "%ne *8F8, the partia& (o$pensation or o00-set o0 respondent@s o%tstandin' &oans 2ith her deposit a((o%nt, a$o%ntin' to P9*,-F8.*5. Mone: $ar;et p&a(e$ents 2ith =NCB =inan(e Thin's tho%'h are not as si$p&e and as strai'ht0or2ard as re'ards to the $one: $ar;et p&a(e$ents and )an; a((o%nt %sed ): petitioner Citi)an; to (o$p&ete the (o$pensation or o00-set o0 respondent@s o%tstandin' &oans, 2hi(h (a$e 0ro$ persons other than petitioner Citi)an;. Respondent@s $one: $ar;et p&a(e$ents 2ere 2ith petitioner =NCB =inan(e, and a0ter se1era& ro&&-o1ers, the: 2ere %&ti$ate&: (o1ered ): PNs No. ,-*9B and ,-*98, 2hi(h, ): 9 Septe$)er *8F8, the date the (he(; 0or the pro(eeds o0 the said PNs 2ere iss%ed, a$o%nted to P*,-,,,8*+.++, in(&%si1e o0 the prin(ipa& a$o%nts and interests. As to these $one: $ar;et p&a(e$ents, respondent 2as the (reditor and petitioner =NCB =inan(e the de)torK 2hi&e, as to the o%tstandin' &oans, petitioner Citi)an; 2as the (reditor and respondent the de)tor. ConseA%ent&:, &e'a& (o$pensation, %nder Arti(&e *,FB o0 the Ci1i& Code, 2o%&d not app&: sin(e the 0irst reA%ire$ent 0or a 1a&id (o$pensation, that ea(h one o0 the o)&i'ors )e )o%nd prin(ipa&&:, and that he )e at the sa$e ti$e a prin(ipa& (reditor o0 the other, 2as not $et. Ghat petitioner Citi)an; a(t%a&&: did 2as to [Link](ise its ri'hts to the pro(eeds o0 respondent@s $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e ): 1irt%e o0 the /eeds o0 Assi'n$ent e.e(%ted ): respondent in its 0a1or. The Co%rt o0 Appea&s did not (onsider these /eeds o0 Assi'n$ent )e(a%se o0 petitioners@ 0ai&%re to prod%(e the ori'ina& (opies thereo0 in 1io&ation o0 the )est e1iden(e r%&e. This Co%rt a'ain 0inds itse&0 in disa'ree$ent in the app&i(ation o0 the )est e1iden(e r%&e ): the appe&&ate (o%rt.

To re(a&&, the )est e1iden(e r%&e, in so 0ar as do(%$entar: e1iden(e is (on(erned, reA%ires the presentation o0 the ori'ina& (op: o0 the do(%$ent on&: 2hen the (onte.t thereo0 is the s%)Ee(t o0 inA%ir: in the (ase. Respondent does not A%estion the (ontents o0 the /eeds o0 Assi'n$ent. Ghi&e she ad$itted the [Link](e and e.e(%tion o0 the /eeds o0 Assi'n$ent, dated , Mar(h *8FB and 8 Mar(h *8FB, (o1erin' PNs No. B*+8 and B*+F iss%ed ): petitioner =NCB =inan(e, she (&ai$ed, as de0ense, that the &oans 0or 2hi(h the said /eeds 2ere e.e(%ted as se(%rit:, 2ere a&read: paid. She denied e1er e.e(%tin' )oth /eeds o0 Assi'n$ent, dated ,6 A%'%st *8FB, (o1erin' PNs No. ,-*9B and ,-*98. These are a'ain iss%es (o&&atera& to the (ontents o0 the do(%$ents in1o&1ed, 2hi(h (o%&d )e pro1en ): e1iden(e other than the ori'ina& (opies o0 the said do(%$ents. Moreo1er, the /eeds o0 Assi'n$ent o0 the $one: $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e 2ere notari?ed do(%$ents, th%s, ad$issi)&e in e1iden(e. R%&e *9,, Se(tion 9- o0 the R%&es o0 Co%rt pro1ides that H SEC. 9-. Proof of notarial documents. H E1er: instr%$ent d%&: a(;no2&ed'ed or pro1ed and (erti0ied as pro1ided ): &a2, $a: )e presented in e1iden(e 2itho%t 0%rther proo0, the (erti0i(ate o0 a(;no2&ed'e$ent )ein' prima facie e1iden(e o0 the e.e(%tion o0 the instr%$ent or do(%$ent in1o&1ed.
3*,54

Si'ni0i(ant herein is this Co%rt@s e&%(idation in De Jesus v. Court of (ppeals, 2hi(h reads H On the e1identiar: 1a&%e o0 these do(%$ents, it sho%&d )e re(a&&ed that the notari?ation o0 a pri1ate do(%$ent (on1erts it into a p%)&i( one and renders it ad$issi)&e in (o%rt 2itho%t 0%rther proo0 o0 its a%thenti(it: <Joson vs. &alta"ar, *85 SCRA **5 3*88*4>. This is so )e(a%se a p%)&i( do(%$ent d%&: e.e(%ted and entered in the proper re'istr: is pres%$ed to )e 1a&id and 'en%ine %nti& the (ontrar: is sho2n ): (&ear and (on1in(in' proo0 < (sido vs. !u"man, 6F Phi&. +6, 3*8*B4K U.6. vs. 4nrique", * Phi& ,5* 3*8-,4K 9avor vs. Court of (ppeals, *85 SCRA 9-B 3*88*4>. As s%(h, the part: (ha&&en'in' the re(ita& o0 the do(%$ent $%st pro1e his (&ai$ 2ith (&ear and (on1in(in' e1iden(e < Dia" vs. Court of (ppeals , *56 SCRA 95+ 3*8B+4>.

The r%&e on the e1identiar: 2ei'ht that $%st )e a((orded a notari?ed do(%$ent is (&ear and %na$)i'%o%s. The (erti0i(ate o0 a(;no2&ed'e$ent in the notari?ed /eeds o0 Assi'n$ent (onstit%ted prima facie e1iden(e o0 the e.e(%tion thereo0. Th%s, the )%rden o0 re0%tin' this pres%$ption 0e&& on respondent. She (o%&d ha1e presented e1iden(e o0 an: de0e(t or irre'%&arit: in the e.e(%tion o0 the said do(%$ents3*,64 or raised A%estions as to the 1erit: o0 the notar: p%)&i(@s a(;no2&ed'$ent and (erti0i(ate in the /eeds. 3*,+4 B%t a'ain, respondent ad$itted e.e(%tin' the /eeds o0 Assi'n$ent, dated , Mar(h *8FB and 8 Mar(h *8FB, a&tho%'h (&ai$in' that the &oans 0or 2hi(h the: 2ere e.e(%ted as se(%rit: 2ere a&read: paid. And, she assai&ed the /eeds o0 Assi'n$ent, dated ,6 A%'%st *8FB, 2ith nothin' $ore than her )are denia& o0 e.e(%tion thereo0, hard&: the (&ear and (on1in(in' e1iden(e reA%ired to tro%n(e the pres%$ption o0 d%e e.e(%tion o0 a notari?ed do(%$ent. Petitioners not on&: presented the notari?ed /eeds o0 Assi'n$ent, )%t e1en se(%red (erti0ied &itera& (opies thereo0 0ro$ the Nationa& Ar(hi1es. 3*,F4 Mr. Renato Med%a, an ar(hi1ist, 2or;in' at the Re(ords Mana'e$ent and Ar(hi1es O00i(e o0 the

Nationa& !i)rar:, testi0ied that the (opies o0 the /eeds presented )e0ore the RTC 2ere (erti0ied &itera& (opies o0 those (ontained in the Notaria& Re'istries o0 the notar: p%)&i(s (on(erned, 2hi(h 2ere a&read: in the possession o0 the Nationa& Ar(hi1es. #e a&so e.p&ained that he (o%&d not )rin' to the RTC the Notaria& Re'istries (ontainin' the ori'ina& (opies o0 the /eeds o0 Assi'n$ent, )e(a%se the /epart$ent o0 "%sti(e </O"> Cir(%&ar No. 8F, dated B No1e$)er *8+B, prohi)its the )rin'in' o0 ori'ina& do(%$ents to the (o%rts to pre1ent the &oss o0 irrep&a(ea)&e and pri(e&ess do(%$ents.
3*,B4

PNs No. ,-*9B and ,-*98 $at%red on 9 Septe$)er *8F8, 2itho%t the$ )ein' redee$ed ): respondent, so that petitioner Citi)an; (o&&e(ted 0ro$ petitioner =NCB =inan(e the pro(eeds thereo0, 2hi(h in(&%ded the prin(ipa& a$o%nts and interests earned ): the $one: $ar;et p&a(e$ents, a$o%ntin' to P*,-,,,8*+.++, and app&ied the sa$e a'ainst respondent@s o%tstandin' &oans, &ea1in' no s%rp&%s to )e de&i1ered to respondent. /o&&ar a((o%nts 2ith Citi)an;-Gene1a /espite the &e'a& (o$pensation o0 respondent@s sa1in's a((o%nt and the tota& app&i(ation o0 the pro(eeds o0 PNs No. ,-*9B and ,-*98 to respondent@s o%tstandin' &oans, there sti&& re$ained a )a&an(e o0 P*,-+8,B5F.5-. Petitioner Citi)an; then pro(eeded to app&:in' respondent@s do&&ar a((o%nts 2ith Citi)an;-Gene1a a'ainst her re$ainin' &oan )a&an(e, p%rs%ant to a /e(&aration o0 P&ed'e s%pposed&: e.e(%ted ): respondent in its 0a1or. Certain prin(ip&es o0 pri1ate internationa& &a2 sho%&d )e (onsidered herein )e(a%se the propert: p&ed'ed 2as in the possession o0 an entit: in a 0orei'n (o%ntr:, na$e&:, Citi)an;-Gene1a. In the a)sen(e o0 an: a&&e'ation and e1iden(e presented ): petitioners o0 the spe(i0i( r%&es and &a2s 'o1ernin' the (onstit%tion o0 a p&ed'e in Gene1a, S2it?er&and, the: 2i&& )e pres%$ed to )e the sa$e as Phi&ippine &o(a& or do$esti( &a2sK this is ;no2n as pro(ess%a& pres%$ption. 3*9*4 Upon (&oser s(r%tin: o0 the /e(&aration o0 P&ed'e, this Co%rt 0inds the sa$e e.(eedin'&: s%spi(io%s and irre'%&ar. =irst o0 a&&, it es(apes this Co%rt 2h: petitioner Citi)an; too; (are to ha1e the /eeds o0 Assi'n$ent o0 the PNs notari?ed, :et &e0t the /e(&aration o0 P&ed'e %nnotari?ed. This Co%rt 2o%&d thin; that petitioner Citi)an; 2o%&d ta;e 'reater (a%tionar: $eas%res 2ith the preparation and e.e(%tion o0 the /e(&aration o0 P&ed'e )e(a%se it in1o&1ed respondent@s Ca&& present and 0%t%re 0id%(iar: p&a(e$entsD 2ith a Citi)an; )ran(h in another (o%ntr:, spe(i0i(a&&:, in Gene1a, S2it?er&and. Ghi&e there is no [Link] &e'a& reA%ire$ent that the /e(&aration o0 P&ed'e had to )e notari?ed to )e e00e(ti1e, e1en so, it (o%&d not enEo: the sa$e prima facie pres%$ption o0 d%e e.e(%tion that is [Link] to notari?ed do(%$ents, and petitioner Citi)an; $%st dis(har'e the )%rden o0 pro1in' d%e e.e(%tion and a%thenti(it: o0 the /e(&aration o0 P&ed'e. Se(ond, petitioner Citi)an; 2as %na)&e to esta)&ish the date 2hen the /e(&aration o0 P&ed'e 2as a(t%a&&: e.e(%ted. The photo(op: o0 the /e(&aration o0 P&ed'e s%)$itted ): petitioner Citi)an; )e0ore the RTC 2as %ndated. 3*9,4 It presented on&: a photo(op: o0 the p&ed'e )e(a%se it a&read: 0or2arded the ori'ina& (op: thereo0 to Citi)an;-Gene1a 2hen it reA%ested 0or the re$ittan(e o0 respondent@s do&&ar a((o%nts p%rs%ant thereto. Respondent, on the other hand, 2as a)&e to se(%re a (op: o0 the /e(&aration o0 P&ed'e, (erti0ied ): an o00i(er o0 Citi)an;-Gene1a, 2hi(h )ore the date ,5 Septe$)er *8F8. 3*994 Respondent, ho2e1er, presented her passport and p&ane ti(;ets to pro1e that she 2as o%t o0 the (o%ntr: on the said date and (o%&d not ha1e si'ned the p&ed'e. Petitioner Citi)an; insisted that the p&ed'e 2as si'ned )e0ore ,5 Septe$)er *8F8, )%t (o%&d not pro1ide an e.p&anation as to ho2 and 2h: the said date 2as 2ritten on the p&ed'e. A&tho%'h Mr. Tan testi0ied that the /e(&aration o0 P&ed'e 2as si'ned ): respondent persona&&: )e0ore hi$, he (o%&d not 'i1e the e.a(t date 2hen the said si'nin' too; p&a(e. It is i$portant to note that the (op: o0 the /e(&aration o0 P&ed'e s%)$itted ): the respondent to the RTC 2as (erti0ied ): an o00i(er o0 Citi)an;-Gene1a, 2hi(h had possession o0 the ori'ina& (op: o0 the p&ed'e. It is dated ,5 Septe$)er *8F8, and this Co%rt sha&& a)ide ): the

A((ordin'&:, this Co%rt 'i1es the /eeds o0 Assi'n$ent 'ra1e i$portan(e in esta)&ishin' the a%thorit: 'i1en ): the respondent to petitioner Citi)an; to %se as se(%rit: 0or her &oans her $one: her $ar;et p&a(e$ents 2ith petitioner =NCB =inan(e, represented ): PNs No. B*+F and B*+8, &ater to )e ro&&ed-o1er as PNs No. ,-*9B and ,-*98. These /eeds o0 Assi'n$ent (onstit%te the &a2 )et2een the parties, and the o)&i'ations arisin' there0ro$ sha&& ha1e the 0or(e o0 &a2 )et2een the parties and sho%&d )e (o$p&ied 2ith in 'ood 0aith. 3*,84 Standard (&a%ses in a&& o0 the /eeds pro1ide that H 0o&&o2s: The ASSIGNOR and the ASSIGNEE here): 0%rther a'ree as .... ,. In the e1ent the OB!IGATIONS are not paid at $at%rit: or %pon de$and, as the (ase $a: )e, the ASSIGNEE is 0%&&: a%thori?ed and e$po2ered to (o&&e(t and re(ei1e the P!ACEMENT <or so $%(h thereo0 as $a: )e ne(essar:> and app&: the sa$e in pa:$ent o0 the OB!IGATIONS. =%rther$ore, the ASSIGNOR a'rees that at an: ti$e, and 0ro$ ti$e to ti$e, %pon reA%est ): the ASSIGNEE, the ASSIGNOR 2i&& pro$pt&: e.e(%te and de&i1er an: and a&& s%(h 0%rther instr%$ents and do(%$ents as $a: )e ne(essar: to e00e(t%ate this Assi'n$ent. .... 6. This Assi'n$ent sha&& )e (onsidered as s%00i(ient a%thorit: to =NCB =inan(e to pa: and de&i1er the P!ACEMENT or so $%(h thereo0 as $a: )e ne(essar: to &iA%idate the OB!IGATIONS, to the ASSIGNEE in a((ordan(e 2ith ter$s and pro1isions hereo0.
3*9-4

Petitioner Citi)an; 2as on&: a(tin' %pon the a%thorit: 'ranted to it %nder the 0ore'oin' /eeds 2hen it 0ina&&: %sed the pro(eeds o0 PNs No. ,-*9B and ,-*98, paid ): petitioner =NCB =inan(e, to part&: pa: 0or respondent@s o%tstandin' &oans. Stri(t&: spea;in', it did not e00e(t a &e'a& (o$pensation or o00-set %nder Arti(&e *,FB o0 the Ci1i& Code, )%t rather, it part&: [Link]'%ished respondent@s o)&i'ations thro%'h the app&i(ation o0 the se(%rit: 'i1en ): the respondent 0or her &oans. A&tho%'h the pertinent do(%$ents 2ere entit&ed /eeds o0 Assi'n$ent, the: 2ere, in rea&it:, $ore o0 a p&ed'e ): respondent to petitioner Citi)an; o0 her (redit d%e 0ro$ petitioner =NCB =inan(e ): 1irt%e o0 her $one: $ar;et p&a(e$ents 2ith the &atter. A((ordin' to Arti(&e ,**B o0 the Ci1i& Code H ART. ,**B. I0 a (redit has )een p&ed'ed )e(o$es d%e )e0ore it is redee$ed, the p&ed'ee $a: (o&&e(t and re(ei1e the a$o%nt d%e. #e sha&& app&: the sa$e to the pa:$ent o0 his (&ai$, and de&i1er the s%rp&%s, sho%&d there )e an:, to the p&ed'or.

pres%$ption that the 2ritten do(%$ent is tr%&: dated. 3*954 Sin(e it is %ndenia)&e that respondent 2as o%t o0 the (o%ntr: on ,5 Septe$)er *8F8, then she (o%&d not ha1e e.e(%ted the p&ed'e on the said date. Third, the /e(&aration o0 P&ed'e 2as irre'%&ar&: 0i&&ed-o%t. The p&ed'e 2as in a standard printed 0or$. It 2as (onstit%ted in 0a1or o0 Citi)an;, N.A., other2ise re0erred to therein as the Ban;. It sho%&d )e noted, ho2e1er, that in the spa(e 2hi(h sho%&d ha1e na$ed the p&ed'or, the na$e o0 petitioner Citi)an; 2as t:pe2ritten, to 2it H The p&ed'e ri'ht here2ith (onstit%ted sha&& se(%re a&& (&ai$s 2hi(h the Ban; no2 has or in the 0%t%re a(A%ires a'ainst Citi)an;, N.A., Mani&a <0%&& na$e and address o0 the /e)tor>, re'ard&ess o0 the &e'a& (a%se or the transa(tion <0or e.a$p&e (%rrent a((o%nt, se(%rities transa(tions, (o&&e(tions, (redits, pa:$ents, do(%$entar: (redits and (o&&e(tions> 2hi(h 'i1es rise thereto, and in(&%din' prin(ipa&, a&& (ontra(t%a& and pena&t: interest, (o$$issions, (har'es, and (osts. The p&ed'e, there0ore, $ade no sense, the p&ed'or and p&ed'ee )ein' the sa$e entit:. Gas a $ista;e $ade ): 2hoe1er 0i&&ed-o%t the 0or$M Yes, it (o%&d )e a possi)i&it:. Nonethe&ess, (onsiderin' the 1a&%e o0 s%(h a do(%$ent, the $ista;e as to a si'ni0i(ant detai& in the p&ed'e (o%&d on&: )e (o$$itted 2ith 'ross (are&essness on the part o0 petitioner Citi)an;, and raised serio%s do%)ts as to the a%thenti(it: and d%e e.e(%tion o0 the sa$e. The /e(&aration o0 P&ed'e had passed thro%'h the hands o0 se1era& )an; o00i(ers in the (o%ntr: and a)road, :et, s%rprisin'&: and i$p&a%si)&:, no one noti(ed s%(h a '&arin' $ista;e. !ast&:, respondent denied that it 2as her si'nat%re on the /e(&aration o0 P&ed'e. She (&ai$ed that the si'nat%re 2as a 0or'er:. Ghen a do(%$ent is assai&ed on the )asis o0 0or'er:, the )est e1iden(e r%&e app&ies H Basi( is the r%&e o0 e1iden(e that 2hen the s%)Ee(t o0 inA%ir: is the (ontents o0 a do(%$ent, no e1iden(e is ad$issi)&e other than the ori'ina& do(%$ent itse&0 e.(ept in the instan(es $entioned in Se(tion 9, R%&e *9- o0 the Re1ised R%&es o0 Co%rt. Mere photo(opies o0 do(%$ents are inad$issi)&e p%rs%ant to the )est e1iden(e r%&e. $)is is espe-iall1 true 2)en t)e issue is t)at of for.er1. As a r%&e, 0or'er: (annot )e pres%$ed and $%st )e pro1ed ): (&ear, positi1e and (on1in(in' e1iden(e and the )%rden o0 proo0 &ies on the part: a&&e'in' 0or'er:. The )est e1iden(e o0 a 0or'ed si'nat%re in an instr%$ent is the instr%$ent itse&0 re0&e(tin' the a&&e'ed 0or'ed si'nat%re. The 0a(t o0 0or'er: (an on&: )e esta)&ished ): a (o$parison )et2een the a&&e'ed 0or'ed si'nat%re and the a%thenti( and 'en%ine si'nat%re o0 the person 2hose si'nat%re is theori?ed %pon to ha1e )een 0or'ed. Githo%t the ori'ina& do(%$ent (ontainin' the a&&e'ed 0or'ed si'nat%re, one (annot $a;e a de0initi1e (o$parison 2hi(h 2o%&d esta)&ish 0or'er:. A (o$parison )ased on a $ere .ero. (op: or reprod%(tion o0 the do(%$ent %nder (ontro1ers: (annot prod%(e re&ia)&e res%&ts.3*964 Respondent $ade se1era& atte$pts to ha1e the ori'ina& (op: o0 the p&ed'e prod%(ed )e0ore the RTC so as to ha1e it e.a$ined ): [Link]. Yet, despite se1era& Orders ): the RTC,3*9+4 petitioner Citi)an; 0ai&ed to (o$p&: 2ith the prod%(tion o0 the ori'ina& /e(&aration o0 P&ed'e. It is ad$itted that Citi)an;-Gene1a had possession o0

the ori'ina& (op: o0 the p&ed'e. Ghi&e petitioner Citi)an; in Mani&a and its )ran(h in Gene1a $a: )e separate and distin(t entities, the: are sti&& in(ontesta)&: re&ated, and )et2een petitioner Citi)an; and respondent, the 0or$er had $ore in0&%en(e and reso%r(es to (on1in(e Citi)an;-Gene1a to ret%rn, a&)eit te$porari&:, the ori'ina& /e(&aration o0 P&ed'e. Petitioner Citi)an; did not present an: e1iden(e to (on1in(e this Co%rt that it had [Link] di&i'ent e00orts to se(%re the ori'ina& (op: o0 the p&ed'e, nor did it pro00er the reason 2h: Citi)an;-Gene1a o)stinate&: re0%sed to 'i1e it )a(;, 2hen s%(h do(%$ent 2o%&d ha1e )een 1er: 1ita& to the (ase o0 petitioner Citi)an;. There is th%s no E%sti0i(ation to a&&o2 the presentation o0 a $ere photo(op: o0 the /e(&aration o0 P&ed'e in &ie% o0 the ori'ina&, and the photo(op: o0 the p&ed'e presented ): petitioner Citi)an; has ni& pro)ati1e 1a&%e. 3*9F4In addition, e1en i0 this Co%rt (annot $a;e a (ate'ori(a& 0indin' that respondent@s si'nat%re on the ori'ina& (op: o0 the p&ed'e 2as 0or'ed, it is pers%aded that petitioner Citi)an; 2i&&0%&&: s%ppressed the presentation o0 the ori'ina& do(%$ent, and ta;es into (onsideration the pres%$ption that the e1iden(e 2i&&0%&&: s%ppressed 2o%&d )e ad1erse to petitioner Citi)an; i0 prod%(ed.3*9B4 Githo%t the /e(&aration o0 P&ed'e, petitioner Citi)an; had no a%thorit: to de$and the re$ittan(e o0 respondent@s do&&ar a((o%nts 2ith Citi)an;-Gene1a and to app&: the$ to her o%tstandin' &oans. It (annot e00e(t &e'a& (o$pensation %nder Arti(&e *,FB o0 the Ci1i& Code sin(e, petitioner Citi)an; itse&0 ad$itted that Citi)an;Gene1a is a distin(t and separate entit:. As 0or the do&&ar a((o%nts, respondent 2as the (reditor and Citi)an;-Gene1a is the de)torK and as 0or the o%tstandin' &oans, petitioner Citi)an; 2as the (reditor and respondent 2as the de)tor. The parties in these transa(tions 2ere e1ident&: not the prin(ipa& (reditor o0 ea(h other. There0ore, this Co%rt de(&ares that the re$ittan(e o0 respondent@s do&&ar a((o%nts 0ro$ Citi)an;-Gene1a and the app&i(ation thereo0 to her o%tstandin' &oans 2ith petitioner Citi)an; 2as i&&e'a&, and n%&& and 1oid. Res%&tant&:, petitioner Citi)an; is o)&i'ated to ret%rn to respondent the a$o%nt o0 USI*58,+9,,88 0ro$ her Citi)an;Gene1a a((o%nts, or its present eA%i1a&ent 1a&%e in Phi&ippine (%rren(:K and, at the sa$e ti$e, respondent (ontin%es to )e o)&i'ated to petitioner Citi)an; 0or the )a&an(e o0 her o%tstandin' &oans 2hi(h, as o0 6 Septe$)er *8F8, a$o%nted to P*,-+8,B5F.5-. V $)e parties s)all be liable for interests on t)eir +onetar1 [Link] to ea-) ot)er, as deter+ined )erein. In s%$$ar:, petitioner Citi)an; is ordered ): this Co%rt to pa: respondent the pro(eeds o0 her $one: $ar;et p&a(e$ents, represented ): PNs No. ,996+ and ,996F, a$o%ntin' to P9*B,B8F.95 and P,-9,*6-.--, respe(ti1e&:, earnin' an interest o0 *5.6J per ann%$ as stip%&ated in the PNs, 3*984 )e'innin' *F Mar(h *8FF, the date o0 the p&a(e$ents. Petitioner Citi)an; is a&so ordered to re0%nd to respondent the a$o%nt o0 USI*58,+9,.88, or its eA%i1a&ent in Phi&ippine (%rren(:, 2hi(h had )een re$itted 0ro$ her Citi)an;-Gene1a a((o%nts. These do&&ar a((o%nts, (onsistin' o0 t2o 0id%(iar: p&a(e$ents and (%rrent a((o%nts 2ith Citi)an;-Gene1a sha&& (ontin%e earnin' their respe(ti1e stip%&ated interests 0ro$ ,+ O(to)er *8F8, the date o0 their re$ittan(e ): Citi)an;-Gene1a to petitioner Citi)an; in Mani&a and app&ied a'ainst respondent@s o%tstandin' &oans.

As 0or respondent, she is ordered to pa: petitioner Citi)an; the )a&an(e o0 her o%tstandin' &oans, 2hi(h a$o%nted to P*,-+8,B5F.5- as o0 6 Septe$)er *8F8. These &oans (ontin%e to earn interest, as stip%&ated in the (orrespondin' PNs, 0ro$ the ti$e o0 their respe(ti1e $at%rit: dates, sin(e the s%pposed pa:$ent thereo0 %sin' respondent@s do&&ar a((o%nts 0ro$ Citi)an;-Gene1a is dee$ed i&&e'a&, n%&& and 1oid, and, th%s, ine00e(ti1e. VI 6etitioner Citiban3 s)all be liable for da+[Link] to respondent. Petitioners protest the a2ard ): the Co%rt o0 Appea&s o0 $ora& da$a'es, e.e$p&ar: da$a'es, and attorne:@s 0ees in 0a1or o0 respondent. The: ar'%ed that the RTC did not a2ard an: da$a'es, and respondent, in her appea& )e0ore the Co%rt o0 Appea&s, did not raise in iss%e the a)sen(e o0 s%(h. Ghi&e it is tr%e that the 'enera& r%&e is that on&: errors 2hi(h ha1e )een stated in the assi'n$ent o0 errors and proper&: ar'%ed in the )rie0 sha&& )e (onsidered, this Co%rt has a&so re(o'ni?ed e.(eptions to the 'enera& r%&e, 2herein it a%thori?ed the re1ie2 o0 $atters, e1en those not assi'ned as errors in the appea&, i0 the (onsideration thereo0 is ne(essar: in arri1in' at a E%st de(ision o0 the (ase, and there is a (&ose inter-re&ation )et2een the o$itted assi'n$ent o0 error and those a(t%a&&: assi'ned and dis(%ssed ): the appe&&ant. 3*5-4 Th%s, the Co%rt o0 Appea&s did not err in a2ardin' the da$a'es 2hen it a&read: $ade 0indin's that 2o%&d E%sti0: and s%pport the said a2ard. A&tho%'h this Co%rt appre(iates the ri'ht o0 petitioner Citi)an; to e00e(t &e'a& (o$pensation o0 respondent@s &o(a& deposits, as 2e&& as its ri'ht to the pro(eeds o0 PNs No. ,-*9B and ,-*98 ): 1irt%e o0 the notari?ed /eeds o0 Assi'n$ent, to part&: [Link]'%ish respondent@s o%tstandin' &oans, it 0inds that petitioner Citi)an; did (o$$it 2ron' 2hen it 0ai&ed to pa: and proper&: a((o%nt 0or the pro(eeds o0 respondent@s $one: $ar;et p&a(e$ents, e1iden(ed ): PNs No. ,996+ and ,996F, and 2hen it so%'ht the re$ittan(e o0 respondent@s do&&ar a((o%nts 0ro$ Citi)an;-Gene1a ): 1irt%e o0 a hi'h&:-s%spe(t /e(&aration o0 P&ed'e to )e app&ied to the re$ainin' )a&an(e o0 respondent@s o%tstandin' &oans. It )ears to e$phasi?e that )an;in' is i$pressed 2ith p%)&i( interest and its 0id%(iar: (hara(ter reA%ires hi'h standards o0 inte'rit: and per0or$an(e.3*5*4 A )an; is %nder the o)&i'ation to treat the a((o%nts o0 its depositors 2ith $eti(%&o%s (are 2hether s%(h a((o%nts (onsist on&: o0 a 0e2 h%ndred pesos or o0 $i&&ions o0 pesos.3*5,4 The )an; $%st re(ord e1er: sin'&e transa(tion a((%rate&:, do2n to the &ast (enta1o, and as pro$pt&: as possi)&e. 3*594 Petitioner Citi)an; e1ident&: 0ai&ed to [Link](ise the reA%ired de'ree o0 (are and transparen(: in its transa(tions 2ith respondent, th%s, res%&tin' in the 2ron'0%& depri1ation o0 her propert:. Respondent had )een depri1ed o0 s%)stantia& a$o%nts o0 her in1est$ents and deposits 0or $ore than t2o de(ades. /%rin' this span o0 :ears, respondent had 0o%nd herse&0 in desperate need o0 the a$o%nts 2ron'0%&&: 2ithhe&d 0ro$ her. In her testi$on:3*554 )e0ore the RTC, respondent narrated H Q B: the 2a: Mrs. Gitness 2i&& :o% ;ind&: te&& %s a'ain, :o% said )e0ore that :o% are a )%siness2o$an, 2i&& :o% te&& %s a'ain 2hat are the )%sinesses :o% are en'a'ed into 3sic4M I a$ en'a'ed in rea& estate. I a$ the o2ner o0 the Modesta 7i&&a'e * and , in San Mateo, Ri?a&. I a$ a&so the President and Chair$an o0 the Board o0 Ma(ador 3 sic4 Co. Q A Q

and B%siness In(. 2hi(h operates the Ma(ador 3 sic4 Internationa& Pa&a(e #ote&. I a$ a&so the President o0 the Ma(ador 3sic4 Internationa& Pa&a(e #ote&, and a&so the Treas%res #o$e Ind%stries, In(. 2hi(h I a$ the Chair$an and president o0 the Board and a&so operatin' a00i&iated (o$pan: in the na$e o0 Treas%res Motor Sa&es en'a'ed in (ar dea&ers 3sic4 &i;e /e&ta Motors, 2e are the dea&ers o0 the 2ho&e Northern !%?on and I a$ the president o0 the /isto Co$pan:, !td., )ased in #on';on' &i(ensed in #on;on' 3sic4 and no2 operatin' in !os An'e&es, Ca&i0ornia. Ghat is the )%siness o0 that /isto Co$pan: !td.M /isto Co$pan:, (onstr%(tion. !td., is en'a'ed in rea& estate and

Aside 0ro$ those )%sinesses are :o% a $e$)er o0 an: nationa& or (o$$%nit: or'ani?ation 0or so(ia& and (i1i& a(ti1itiesM Yes sir. Ghat are thoseM I a$ the 7i(e-President o0 thes 3 sic4 S%)di1ision Asso(iation o0 the Phi&ippines in *8F+, I a$ a&so an o00i(er o0 the W Cha$)er o0 Rea& Estate B%siness Asso(iationK I a$ a&so an o00i(er o0 the Chatho&i( 3sic4 Go$en@s !ea'%e and I a$ a&so a $e$)er o0 the CM!I, I 0or'ot the de0inition. #o2 a)o%t an: po&iti(a& a00i&iation or 'o1ern$ent position he&d i0 an:M I 2as a&so a (andidate 0or Ma:o &ast "an%ar: 9-, *8B-. GhereM In /a'%pan Cit:, Pan'asinan. Ghat e&seM I a&so ran as an Asse$)&:2o$an &ast Ma:, Independent part: in Re'iona& I, Pan'asinan. *8B5,

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Ghat happened to :o%r )%sinesses :o% $entioned as a res%&t o0 :o%r 0ai&%re to re(o1er :o% 3sic4 in1est$ents and )an; deposits 0ro$ the de0endantsM The: are not a&& operatin', in short, I 2as ha$pered to p%sh thro%'h the )%sinesses that I ha1e.

A 3sic4 O0 a&& the )%sinesses and enterprises that :o% $entioned 2hat are those that are para&:?ed and 2hat re$ain ina(ti1eM

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O0 a&& the (o$pan: 3sic4 that I ha1e, on&: the /isto Co$pan: that is no2 operatin' in Ca&i0ornia. #o2 a)o%t :o%r (andida(: as Ma:or o0 /a'%pan, 3 sic4 Cit:, and &ater as Asse$)&:2o$an o0 Re'ion I, 2hat happened to thisM I 2on ): 1otin' )%t 2hen e&e(tion (o$es on 3 sic4 the (o%ntin' I &ost and I protested this, it is sti&& pendin' and )e(a%se I don@t ha1e 0inan(ia& reso%r(es I 2as not a)&e to p%sh thro%'h the (ase. I E%st ha1e it pendin' in the Co$e&e(. No2, do these thin's a&so a00e(t :o%r so(ia& and (i1i( a(ti1itiesM Yes sir, de0inite&:. #o2M I 2as e$)arrassed )e(a%se )ein' a )%siness2o$an I 2o%&d &i;e to in0or$ the #onora)&e Co%rt that I 2as a2arded as the $ost o%tstandin' )%siness2o$an o0 the :ear in *8F+ )%t 2hen this $one: 2as not 'i1en )a(; to $e I 2as not a)&e to (o$p&: 2ith the (o$$it$ents that I ha1e pro$ised to these asso(iations that I a$ en'a'ed into 3 sic4, sir.

*. PNs No. ,996+ and ,996F are )EC3ARE) s%)sistin' and o%tstandin'. Petitioner Citi)an; is OR)ERE) to ret%rn to respondent the prin(ipa& a$o%nts o0 the said PNs, a$o%ntin' to Three #%ndred Ei'hteen Tho%sand Ei'ht #%ndred Ninet:-Se1en Pesos and Thirt:-=o%r Centa1os <P9*B,B8F.95> and T2o #%ndred Three Tho%sand One #%ndred =i0t: Pesos <P,-9,*6-.-->, respe(ti1e&:, p&%s the stip%&ated interest o0 =o%rteen and a ha&0 per(ent <*5.6J> per ann%$, )e'innin' *F Mar(h *8FFK ,. The re$ittan(e o0 One #%ndred =ort:-Nine Tho%sand Si. #%ndred Thirt: T2o US /o&&ars and Ninet:-Nine Cents <USI*58,+9,.88> 0ro$ respondent@s Citi)an;-Gene1a a((o%nts to petitioner Citi)an; in Mani&a, and the app&i(ation o0 the sa$e a'ainst respondent@s o%tstandin' &oans 2ith the &atter, is )EC3ARE) i&&e'a&, n%&& and 1oid. Petitioner Citi)an; is OR)ERE) to re0%nd to respondent the said a$o%nt, or its eA%i1a&ent in Phi&ippine (%rren(: %sin' the e.(han'e rate at the ti$e o0 pa:$ent, p&%s the stip%&ated interest 0or ea(h o0 the 0id%(iar: p&a(e$ents and (%rrent a((o%nts in1o&1ed, )e'innin' ,+ O(to)er *8F8K 9. Petitioner Citi)an; is OR)ERE) to pa: respondent $ora& da$a'es in the a$o%nt o0 Three #%ndred Tho%sand Pesos <P9--,---.-->K e.e$p&ar: da$a'es in the a$o%nt o0 T2o #%ndred =i0t: Tho%sand Pesos <P,6-,---.-->K and attorne:@s 0ees in the a$o%nt o0 T2o #%ndred Tho%sand Pesos <P,--,---.-->K and 5. Respondent is OR)ERE) to pa: petitioner Citi)an; the )a&an(e o0 her o%tstandin' &oans, 2hi(h, 0ro$ the respe(ti1e dates o0 their $at%rit: to 6 Septe$)er *8F8, 2as (o$p%ted to )e in the s%$ o0 One Mi&&ion Si.t:-Nine Tho%sand Ei'ht #%ndred =ort:-Se1en Pesos and =ort: Centa1os <P*,-+8,B5F.5->, in(&%si1e o0 interest. These o%tstandin' &oans sha&& (ontin%e to earn interest, at the rates stip%&ated in the (orrespondin' PNs, 0ro$ 6 Septe$)er *8F8 %nti& pa:$ent thereo0.

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=or the $enta& an'%ish, serio%s [Link]:, )es$ir(hed rep%tation, $ora& sho(; and so(ia& h%$i&iation s%00ered ): the respondent, the a2ard o0 $ora& da$a'es is )%t proper. #o2e1er, this Co%rt red%(es the a$o%nt thereo0 to P9--,---.--, 0or the a2ard o0 $ora& da$a'es is $eant to (o$pensate 0or the a(t%a& inE%r: s%00ered ): the respondent, not to enri(h her.3*564 #a1in' 0ai&ed to [Link](ise $ore (are and pr%den(e than a pri1ate indi1id%a& in its dea&in's 2ith respondent, petitioner Citi)an; sho%&d )e &ia)&e 0or e.e$p&ar: da$a'es, in the a$o%nt o0 P,6-,---.--, in a((ordan(e 2ith Arti(&e ,,,8 3*5+4 and ,,953*5F4 o0 the Ci1i& Code. Gith the a2ard o0 e.e$p&ar: da$a'es, then respondent sha&& a&so )e entit&ed to an a2ard o0 attorne:@s 0ees.3*5B4 Additiona&&:, attorne:Vs 0ees $a: )e a2arded 2hen a part: is (o$pe&&ed to &iti'ate or to in(%r [Link] to prote(t his interest ): reason o0 an %nE%sti0ied a(t o0 the other part:. 3*584 In this (ase, an a2ard o0 P,--,---.-attorne:@s 0ees sha&& )e satis0a(tor:. In (ontrast, this Co%rt 0inds no s%00i(ient )asis to a2ard da$a'es to petitioners. Respondent 2as (o$pe&&ed to instit%te the present (ase in the [Link](ise o0 her ri'hts and in the prote(tion o0 her interests. In 0a(t, a&tho%'h her Co$p&aint )e0ore the RTC 2as not s%stained in its entiret:, it did raise $eritorio%s points and on 2hi(h this Co%rt r%&es in her 0a1or. An: inE%r: res%&tin' 0ro$ the [Link](ise o0 one@s ri'hts is damnum a$sque in:uria.3*6-4 IN VIE1 OF T2E FORE*OIN*, the instant Petition is !ART34 *RANTE). The assai&ed /e(ision o0 the Co%rt o0 Appea&s in CA-G.R. No. 6*89-, dated ,+ Mar(h ,--,, as a&read: $odi0ied ): its Reso&%tion, dated ,- No1e$)er ,--,, is here): AFFIR(E) 1IT2 (O)IFICATION, as 0o&&o2s =