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G.R. No. 208672. December 7, 2016.*

 
PHILIPPINE NATIONAL BANK, petitioner, vs. PABLO V.
RAYMUNDO, respondent.

Remedial Law; Criminal Procedure; Civil Liability; Our law

recognizes two (2) kinds of acquittal, with different effects on the
civil liability of the accused. First is an acquittal on the ground
that the accused is not the author of the act or omission
complained of. This instance closes the door to civil liability; The
second instance is an acquittal based on reasonable doubt on the
guilt of the accused. In this case, even if the guilt of the accused
has not been satisfactorily established, he is not exempt from civil
liability.—The Court explains the two kinds of acquittal
recognized by law, as well their effects on the civil liability of the
accused, thus: Our law recognizes two kinds of acquittal, with
different effects on the civil liability of the accused. First is an
acquittal on the ground that the accused is not the author of the
act or omission complained of. This instance closes the door to
civil liability, for a person who has been found to be not the
perpetrator of any act or omission cannot and can never be held
liable for such act or omission. There being no delict, civil liability
ex delicto is out of the question, and the civil action, if any, which
may be instituted must be based on grounds other than the delict
complained of. This is the situation contemplated in Rule 111 of
the Rules of Court. The second instance is an acquittal based on
reasonable doubt on the guilt of the accused. In this case, even if
the guilt of the accused has not been satisfactorily established, he
is not exempt from civil liability which may be proved by
preponderance of evidence only. The Rules of Court requires that
in case of an acquittal, the judgment shall state “whether the
evidence of the prosecution absolutely failed to prove the guilt of
the accused or merely failed to prove his guilt beyond reasonable
doubt. In either case, the judgment shall determine if the act or
omission from which the civil liability might arise did not exist.”
In light of the foregoing, Raymundo can still be held civilly liable
for the charge of violation of Section 3(e) of RA No. 3019 because
he was only acquitted for failure of the prosecution to establish
his guilt beyond reasonable doubt, and the RTC and the CA
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_______________

*  THIRD DIVISION.

 
 
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erroneously determined that no civil liability might arise

from his act of relying on the bookkeeper’s verification that the six
(6) checks amounting to P4,000,000.00 were all good, but later
turned out to be drawn against uncollected deposit, i.e., the
account has, on its face, sufficient funds but not yet available to
the drawer because the deposit, usually a check, had not yet been
cleared.
Banks and Banking; Diligence Required of Banks;
Extraordinary Diligence; Since their business and industry are
imbued with public interest, banks are required to exercise
extraordinary diligence, which is more than that of a Roman
paterfamilias or a good father of a family, in handling their
transactions.—Since their business and industry are imbued with
public interest, banks are required to exercise extraordinary
diligence, which is more than that of a Roman paterfamilias or a
good father of a family, in handling their transactions. Banks are
also expected to exercise the highest degree of diligence in the
selection and supervision of their employees. By the very nature
of their work in handling millions of pesos in daily transactions,
the degree of responsibility, care and trustworthiness expected of
bank employees and officials is far greater than those of ordinary
clerks and employees.
Same; Same; Gross Negligence; A bank’s disregard of its own
banking policy amounts to gross negligence, which is described as
“negligence characterized by the want of even slight care, acting or
omitting to act in a situation where there is duty to act, not
inadvertently but willfully and unintentionally with a conscious
indifference to consequences insofar as other persons may be
affected.”—A bank’s disregard of its own banking policy amounts
to gross negligence, which is described as “negligence
characterized by the want of even slight care, acting or omitting
to act in a situation where there is duty to act, not inadvertently
but willfully and unintentionally with a conscious indifference to
consequences insofar as other persons may be affected.” Payment
of the amounts of checks without previously clearing them with

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the drawee bank, especially so where the drawee bank is a foreign

bank and the amounts involved were large, is contrary to normal
or ordinary banking practice. Before the check shall have been
cleared for deposit, the collecting bank can only assume at its own
risk that the check would be cleared and paid out. As a bank
Branch Manager, Raymundo is expected to be an expert in

 
 
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Philippine National Bank vs. Raymundo

banking procedures, and he has the necessary means to

ascertain whether a check, local or foreign, is sufficiently funded.
Same; Same; Same; Raymundo’s act of approving the deposit
to Ms. Juan’s newly-opened peso checking account of the peso
conversion [P4,752,689.65] of the foreign check prior to the lapse of
the twenty-one (21)-day clearing period is the proximate cause why
the six (6) checks worth P4,000,000.00 were later encashed, thereby
causing the Philippine National Bank (PNB) undue injury.—
Raymundo’s act of approving the deposit to Ms. Juan’s newly-
opened peso checking account of the peso conversion
[P4,752,689.65] of the foreign check prior to the lapse of the 21-
day clearing period is the proximate cause why the six (6) checks
worth P4,000,000.00 were later encashed, thereby causing the
PNB undue injury. Defined as that cause which, in natural and
continuous sequence, unbroken by any efficient intervening cause,
produces injury and without which the result would not have
occurred, the proximate cause can be determined by asking a
simple question: “If the event did not happen, would the injury
have resulted? If the answer is no, then the event is the proximate
cause.” If Raymundo did not disregard the bank’s foreign check
clearing policy when he approved crediting of the peso conversion
of Ms. Juan’s foreign check in her newly-opened peso checking
account, the PNB would not have suffered losses due to the
irregular encashment of the six (6) checks.
Damages; Actual Damages; To justify an award of actual
damages, there must be competent proof of the actual amount of
loss, credence can be given only to claims which are duly supported
by receipts, and courts cannot simply rely on speculation,
conjecture or guesswork in determining the fact and amount of
damages.—It is well-settled that actual damages, to be
recoverable, must not only be capable of proof, but must actually
be proved with a reasonable degree of certainty. To justify an
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award of actual damages, there must be competent proof of the

actual amount of loss, credence can be given only to claims which
are duly supported by receipts, and courts cannot simply rely on
speculation, conjecture or guesswork in determining the fact and
amount of damages. While the PNB claims having suffered
damages to the extent of P4,000,000.00 due to the encashment of
checks drawn against uncollected deposit, the testimonial and
documentary evidence on record show that it only incurred losses
in the total sum of P2,100,882.87. Based on the ac-

 
 

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Philippine National Bank vs. Raymundo

counts receivable ledger and the PNB’s letter dated December

5, 1995, Raymundo’s account receivable was reduced to
P2,100,882.87 after the application of six (6) check payments
aggregating P1,725,172.03 on October 1, 1993.

PETITION for review on certiorari of the decision and

resolution of the Court of Appeals.
The facts are stated in the opinion of the Court.
   Raul A. Mora for respondent.

PERALTA, J.:
 
This is a petition for review on certiorari under Rule 45
of the Rules of Court, seeking to reverse and set aside the
Decision1 dated May 31, 2013 and the Resolution dated
August 14, 2013 of the Court of Appeals (CA) in C.A.-G.R.
CV No. 96760. The CA denied the appeal of Philippine
National Bank (PNB)2 from the civil aspect of the Decision
dated December 4, 20093 of the Regional Trial Court (RTC)
of San Pedro, Laguna, Branch 93, which acquitted Pablo V.
Raymundo of the charge of violation of Section 3(e) of
Republic Act (RA) No. 3019, otherwise known as the Anti-
Graft and Corrupt Practices Act, in Criminal Case No.
0414-SPL.
The CA summarized the facts as follows.4
On July 30, 1993, accused-appellee Pablo V. Raymundo
(Raymundo), then Department Manager of PNB San Pedro
Branch, approved for deposit a foreign draft check dated
June 23, 1993, in the amount of $172,549.00 issued by

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Solomon Guggenheim Foundation, drawn against Morgan

Guaranty

_______________

1   Penned by Associate Justice Sesinando E. Villon, with Associate

Justices Florito S. Macalino and Pedro B. Corales, concurring.
2   PNB was originally established as a government bank in 1916, but
has been 100% privatized since 2007.
3  Penned by Judge Francisco Dizon Paño.
4  Rollo, pp. 55-56.

 
 

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Company of New York, payable to Merry May Juan (Ms.

Juan) in the opening of the latter’s checking account with
PNB San Pedro Branch. Consequent to the approval for
deposit of the foreign draft check, Checking Account No.
447-810168-1 and a check booklet were issued to Ms. Juan.
On even date, Ms. Juan drew six (6) PNB Checks, five (5) of
which were made payable to C&T Global Futures and one
(1) payable to “CASH,” all in the aggregate amount of
FOUR MILLION PESOS (P4,000,000.00). The six (6)
checks were negotiated by Ms. Juan and were approved for
payment on the same day by Raymundo, without waiting
for the foreign draft check, intended to fund the issued
check, to be cleared by the PNB Foreign Currency Clearing
Unit.
On August 2, 1993, the PNB Foreign Checks Unit and
Clearing Services received the foreign draft check for
negotiation with Morgan Trust Company of New York,
through PNB’s correspondent bank in New York, the
Banker’s Trust Co. of New York (BTCNY for brevity).
On August 6, 1993 and within the clearing period of
twenty-one (21) days for foreign draft checks, the PNB
received a telex message from BTCNY that the foreign
draft check was dishonored for being fraudulent.
Subsequent to the said telex message, a letter dated
August 20, 1993 was sent by BTCNY to the PNB Corporate
Auditor stating the same reason for such dishonor.
On September 9, 1993, Mr. Emerito Sapinoso,
Department Manager II of the PNB Foreign Currency
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Clearing Unit, sent a memorandum to Raymundo, as then

Manager of PNB San Pedro, and informed the latter of the
return and dishonor of the foreign currency draft and the
corresponding debit of the PNB’s account to collect the
proceeds of the erroneously paid foreign draft check.
For irregularly approving the payment of the six (6)
checks issued by Ms. Juan, without waiting for the foreign
draft check to be cleared, Raymundo, as then Department
Manager of PNB San Pedro Branch, was administratively
charged by
 
 
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Philippine National Bank vs. Raymundo

PNB for Conduct Prejudicial to the Interest of the Service

and/or Gross Violation of Bank’s Rules and Regulations.
Accused Pablo V. Raymundo denied the allegations that
he committed acts which defrauded the PNB of the sum of
P4,000,000.00. Outlining the procedure from the time the
check was presented to the PNB San Pedro, Laguna
Branch where he worked as Branch Manager up to the
time it is paid or dishonored, he noted that the check will
pass through the bookkeeper, Ms. Leonida Moredo, who
would determine if the check is funded or not. If the check
is not funded, the bookkeeper will accomplish a check
return slip and will stamp the back and front of the check
that it has no funds and thereafter give it to the
accountant, Rodrigo Camello, to verify if indeed the check
is not funded. After the receipt of the check, the accountant
will check the ledger and the circumstances of the return
and thereafter forward the same to the branch manager, or
in his absence, the cashier. Upon receipt of the check
deposit slip, the branch manager, if there is no return slip,
would automatically sign the check because the absence of
a return slip is his guide that the check is good. He noted
that it is the duty of the bookkeeper to go over the records
of the account of each particular client. When he came to
know that withdrawals had been made on a deposited
check which had no funds, he immediately instructed
bookkeeper Leonila Moredo and accountant Rodrigo
Camello to hold further withdrawals on the account. He
likewise filed criminal charges against Merry May Juan.
The case was decided in his favor and the accused therein

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was made to pay him and the bank the amount of the
check. There was no actual payment made however.
In an Information dated September 27, 1996, the Office
of the Ombudsman charged Raymundo with violation of
Section 3(e) of RA No. 3019, to wit:

That on or about August 3, 1993, or subsequent thereto, in San

Pedro, Laguna, Philippines and within the jurisdiction of this
Honorable Court, accused Pablo V.

 
 
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Philippine National Bank vs. Raymundo

Raymundo, then the Assistant Department Manager of PNB,

San Pedro Branch, Laguna, and a public officer, while in the
performance and taking advantage of his official function as
manager, with evident bad faith, manifest partiality, and gross
inexcusable negligence, did then and there willfully and
unlawfully approve/allow the encashment of a total of six (6)
checks drawn against an uncleared foreign checks in complete
disregard of existing banking regulations, that was subsequently
returned by the drawee bank as a fraudulent foreign check, thus
causing undue injury to complainant PNB in the total sum of
P4,000,000.00.
CONTRARY TO LAW.

 
Upon arraignment, Raymundo entered a plea of not
guilty to the charge. He waived his right to a pretrial, and
trial on the merits ensued.
After trial, the RTC rendered the Decision dated
December 4, 2009, the dispositive portion of which reads:

In light of the foregoing, it is very clear that the prosecution

failed to establish the guilt of accused Pablo V. Raymundo beyond
reasonable doubt for the crime charged.
Consequently, accused Pablo V. Raymundo is hereby acquitted
of the charge of Violation of Sec. 3(e), R.A. 3019.
No costs.
SO ORDERED.

 
The RTC held that it would be too harsh and inequitable
to impose criminal liability upon Raymundo, who approved
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the withdrawal because of his belief that the checks were

funded, due to the absence of the stamp mark “Returned
Check’’ on the checks, and check return slips. Considering
that Raymundo’s duties as Branch Manager entailed a lot
of responsibility, the RTC found it almost unreasonable to
expect him to directly and personally check the books of
accounts of each
 
 

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particular client every time a check is presented to the

bank for payment and for his approval. The RTC stressed
that it has been established that the responsibility to go
over the account records of clients falls on the bookkeeper,
and Raymundo’s act of relying upon the bookkeeper’s
verification that the checks were good cannot be deemed
gross and inexcusable negligence.
Aggrieved, the PNB appealed from the civil aspect of the
RTC Decision which acquitted Raymundo of the charge of
violation of Section 3(e) of R.A. No. 3019.
In a Decision dated May 31, 2013, the CA denied the
PNB’s appeal for lack of merit. In a Resolution dated
August 14, 2013, it also denied the PNB’s motion for
reconsideration for lack of merit. It ruled that Raymundo
acted in good faith in relying upon his subordinates, i.e.,
the bookkeeper and accountant, who were primarily
assigned with the task of clearing the checks and ensuring
that they are sufficiently funded. It held that he has no
duty to go beyond the verification of the documents
submitted by the bookkeeper and the accountant, and to
personally authenticate the procedures taken. It added
that considering that his duties as Branch Manager entails
a lot of responsibility, it is unreasonable to require him to
accomplish and direct a personal examination of the
records of the account of each particular client before
affixing his signature on the documents as approving
authority.
Dissatisfied, the PNB filed this petition for review on
certiorari, arguing that the CA committed serious errors,
namely: (1) when it ruled that the trial court aptly
concluded that there was lack of malice or bad faith, nor
negligence on the part of Raymundo in approving the
payment of the checks; (2) when it failed to consider
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Raymundo’s negligence and entirely disregarded the

testimonial and documentary evidence of the PNB before
the trial court; and (3) when it ruled that Raymundo is not
civilly liable for the offense charged.5

_______________

5  Id., at pp. 39-40.

 
 

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The petition is meritorious.

The Court explains the two kinds of acquittal recognized
by law, as well their effects on the civil liability of the
accused, thus:

Our law recognizes two kinds of acquittal, with different effects

on the civil liability of the accused. First is an acquittal on the
ground that the accused is not the author of the act or omission
complained of. This instance closes the door to civil liability, for a
person who has been found to be not the perpetrator of any act or
omission cannot and can never be held liable for such act or
omission. There being no delict, civil liability ex delicto is out of
the question, and the civil action, if any, which may be instituted
must be based on grounds other than the delict complained of.
This is the situation contemplated in Rule 111 of the Rules of
Court. The second instance is an acquittal based on reasonable
doubt on the guilt of the accused. In this case, even if the guilt of
the accused has not been satisfactorily established, he is not
exempt from civil liability which may be proved by preponderance
of evidence only.
The Rules of Court requires that in case of an acquittal, the
judgment shall state “whether the evidence of the prosecution
absolutely failed to prove the guilt of the accused or merely failed
to prove his guilt beyond reasonable doubt. In either case, the
judgment shall determine if the act or omission from which the
civil liability might arise did not exist.”6

 
In light of the foregoing, Raymundo can still be held
civilly liable for the charge of violation of Section 3(e) of
R.A. No. 3019 because he was only acquitted for failure of
the prosecution to establish his guilt beyond reasonable
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doubt, and the RTC and the CA erroneously determined

that no civil liability

_______________

6  Lumantas v. Calapiz, 724 Phil. 248, 253-254; 713 SCRA 337, 342-343
(2014), citing Manantan v. Court of Appeals, G.R. No. 107125, January 29,
2001, 350 SCRA 387, 397-398.

 
 

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might arise from his act of relying on the bookkeeper’s

verification that the six (6) checks amounting to
P4,000,000.00 were all good, but later turned out to be
drawn against uncollected deposit, i.e., the account has, on
its face, sufficient funds but not yet available to the drawer
because the deposit, usually a check, had not yet been
cleared.7
Factual findings of the appellate court generally are
conclusive, and carry even more weight when said court
affirms the findings of the trial court, absent any showing
that the findings are totally devoid of support in the
records, or that they are so glaringly erroneous as to
constitute grave abuse of discretion.8 In this case, however,
both the RTC and the CA totally ignored the testimonial
and documentary evidence of the PNB, showing
Raymundo’s gross negligence in approving the payment of
six (6) checks negotiated by Ms. Juan on August 3, 1993
and August 5, 1993, without waiting for the foreign draft
check intended to fund the peso checking account she
opened on July 30, 1993, to be cleared by the PNB Foreign
Currency Clearing Unit.
Despite their having been identified9 and formally
offered10 by PNB, and admitted in evidence11 by the trial
court, the RTC and the CA failed to give due credence to
Raymundo’s affidavits, complaints and testimonies before
the other trial courts in San Pedro, Laguna, where he had
filed separate criminal and civil cases against Ms. Juan
and her cohorts in order to recover the value of the six (6)
checks which were encashed despite having been drawn
against uncollected deposit. Contrary to Raymundo’s claim,

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such extrajudicial admissions do not violate his right

against self-incrimination,

_______________

7   Salazar v. People, 458 Phil. 504, 511; 411 SCRA 598, 602 (2003).
8   Navaja v. De Castro, G.R. No. 182926, June 22, 2015, 759 SCRA
487, 503.
9   TSN, December 4, 2002, pp. 5-9.
10  Records (Vol. II), pp. 291-295.
11  Id. (Vol. III), p. 418.

 
 
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which simply proscribes the legal process of extracting from

the lips of the accused an admission of guilt. Suffice it to
state that Raymundo’s Complaints12 and Affidavits13 in the
civil and criminal cases he filed against Ms. Juan contain
his voluntary statements, which were subscribed and
sworn to either before the Assistant Provincial Prosecutor
and the Judge or the Notary Public, whereas his
testimonies14 were given during hearings in the said cases.
Clearly, Raymundo is not being compelled to testify against
himself. In the same vein, PNB cannot be faulted for
merely using the documentary and testimonial evidence he
willingly proffered in the cases he had filed to recover the
losses incurred by the bank due to his unauthorized
approval for payment of the six (6) checks drawn against
the uncollected deposit.
The circumstances showing Raymundo’s gross
negligence can be gathered in the Complaint for sum of
money he had filed against Ms. Juan and her cohorts, to
wit:

3. That on July 30, 1993, a group of persons composed of the

above named defendants [including Ms. Juan] who, for some time,
have been known to the plaintiff [Raymundo] as ranking and top
executives of the herein defendant corporation [payee C&T Global
Futures, Inc.] engaged in the foreign currency trading business,
came to the Office of herein plaintiff. They intimated their plan of
opening a current account with the said San Pedro Branch of the
Philippine National Bank. They let it appear that this was in line

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with C&T Global Futures, Inc.’s ongoing contest which the said
group wanted to win the first prize which was purportedly a
round-trip ticket to Hong Kong. For this purpose, they wanted the
checking account to be opened immediately in the name of
defendant Mary May M. Juan with the amount of $172,549.00
(P4,778,744.55) embodied in a

_______________

12  Id. (Vol. II), pp. 305A-306 and 339-344.

13  Id., at pp. 307-308 and 345-346.
14  Id., at pp. 325-409.

 
 
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Morgan Guaranty and Trust Company of New York Check No.

069748 as initial deposit. They further assured the herein
plaintiff that some more dollars are coming in the near future if
this transaction would prosper;
4. That at first, plaintiff herein [Raymundo] was a bit
hesitant to immediately accommodate the seemingly hasty
manner of opening a current account not only on the fact
that the amount involved was quite big but also on
account that he was dealing with a foreign check. But
when the group, particularly defendant “Cleo” Tan,
showed to him the record of a just-concluded overseas call
confirming that the said Morgan Guaranty Company
check was good, plaintiff allowed the issuance of six (6)
checks bearing different dates in the total amount of
P4,000,000.00 all payable to herein defendant corporation
upon the undertaking of the group that the same would
not be “traded” or negotiated until the said Morgan
Guaranty Trust Co. check has been finally cleared;
5. That in utter violation of the trust and confidence reposed
in them by the herein plaintiff, defendants went on negotiating all
those six (6) checks until it was discovered that the said Morgan
Guaranty Trust Company Check No. 069748 was
“FRAUDULENT” and from all indications, herein defendants are
parts of the criminal syndicate.15

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Raymundo’s gross negligence is likewise underscored in

the Affidavit dated October 25, 1993 he had executed to
support his complaint for estafa against Ms. Juan and her
cohorts, thus:

2. That on July 30, 1993, while I was at the office of PNB San
Pedro, Laguna, Cleopatra Tan alias “Cleo,” Josefina Resari, and
Merry May M. Juan, representing themselves as department
manager, Vice President and employee, respectively of the C&T
Global Futures, Inc., and some persons whose identities are not
yet known, by

_______________

15  Id., at pp. 339-341. (Emphasis added)

 
 
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false pretenses and fraudulent acts, intimated to me their plan of

opening a current account with the Philippine National Bank San
Pedro Branch;
3. That, they told me of their plan of opening a current
account in line with the C&T Global Futures, Inc.’s ongoing
contest with the end in view of winning its hefty first prize trip to
Hong Kong and for that purpose they are ready to make an initial
deposit of US$172,549.00, embodied in a Morgan Guaranty Trust
Company of New York [check];
4. That, because what was shown to me was a foreign
check and involving as it does a huge amount of money, I
was hesitant to accommodate them and made further
inquiries from them until Cleopatra Tan gave me a very
strong and convincing assurance that the Morgan
Guaranty Check was good by way of telling me of a just-
concluded overseas call confirming that said check was
good, which facts she further buttressed later by giving a copy of
the bill of the detailed transaction x x x;
5. That, not knowing their dirty scheme and desirous to
generate bigger bank deposits, I allowed them to make an initial
deposit of US$172,549.00 embodied as earlier stated in a Morgan
Guaranty Trust Company of New York [check] dated June 29,
1993 bearing No. 069748 with Merry May M. Juan as payee,
x x x;

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6. That, having been fully assured that the Morgan

check is good and trusting on their respective
representations that they are top executives of the C&T
Global Futures, Inc., I allowed the issuance of six (6)
checks, as follows:

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Philippine National Bank vs. Raymundo

with a total amount of P4,000,000.00, Philippine Currency x x x;

7. That I allowed the aforecited checks to be issued on
the strong and collective undertaking of all the accused,
that the same would not be traded until after the Morgan
Guaranty Check shall have been cleared;
8. That, in utter disregard of the trust and confidence I
reposed on all of them, in violation of their undertaking, accused
negotiated all the six (6) checks until it was discovered that the
Morgan Guaranty Check was fraudulent x  x  x as per
memorandum of the Assistant Department Manager II Clearing
Services Group, Philippine National Bank dated September 9,
1993, x x x.16

 
While his prompt filing of criminal and civil cases
against Ms. Juan and her cohorts for the recovery of the
money negates bad faith in causing undue injury to the
PNB, it incidentally revealed Raymundo’s gross negligence
(1) in allowing the peso conversion of the foreign check to
be credited to her newly opened peso checking account,17
even before the lapse of the 21-day clearing period, and (2)
in issuing her a check booklet, all on the very same day the
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said account was opened on July 30, 1993. In his desire to

secure bigger bank deposits, Raymundo disregarded the
bank’s foreign check clearing policy, and risked his trust
and confidence on Ms. Juan’s and her cohorts’ assurance
that the foreign check was good and

_______________

16  Id., at pp. 307-308. (Emphases added)

17   Id., at p. 206; Subsidiary Ledger showing that on July 30, 1993,
P4,752,689.85 was deposited under Ms. Juan’s checking account.

 
 

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Philippine National Bank vs. Raymundo

that they would not negotiate any check until the former
check is cleared.
Since their business and industry are imbued with
public interest, banks are required to exercise
extraordinary diligence, which is more than that of a
Roman paterfamilias or a good father of a family, in
handling their transactions.18 Banks are also expected to
exercise the highest degree of diligence in the selection and
supervision of their employees.19 By the very nature of
their work in handling millions of pesos in daily
transactions, the degree of responsibility, care and
trustworthiness expected of bank employees and officials is
far greater than those of ordinary clerks and employees.20
A bank’s disregard of its own banking policy amounts to
gross negligence, which is described as “negligence
characterized by the want of even slight care, acting or
omitting to act in a situation where there is duty to act, not
inadvertently but willfully and unintentionally with a
conscious indifference to consequences insofar as other
persons may be affected.”21 Payment of the amounts of
checks without previously clearing them with the drawee
bank, especially so where the drawee bank is a foreign
bank and the amounts involved were large, is contrary to
normal or ordinary banking practice.22 Before the check
shall have been cleared for deposit, the collecting

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18  Philippine National Bank v. Cheah Chee Chong, 686 Phil. 760, 771;
671 SCRA 49, 62-63 (2012), citing Philippine Savings Bank v. Chowking
Food Corporation, G.R. No. 177526, July 4, 2008, 557 SCRA 318, 330,
citing Bank of the Philippine Islands v. Court of Appeals, 383 Phil. 538,
554; 326 SCRA 641, 657-658 (2000).
19  Equitable PCI Bank v. Tan, 642 Phil. 657, 674; 628 SCRA 520, 537-
538 (2010), citing Citibank, N.A. v. Cabamongan, G.R. No. 146918, May 2,
2006, 488 SCRA 517, 532.
20  Id.
21  Philippine National Bank v. Cheah Chee Chong, supra at
p. 772; pp. 62-63.
22  Id., citing Atlantico v. Auditor General, 171 Phil. 298, 304; 81 SCRA
335, 340-341 (1978).

 
 
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bank can only assume at its own risk that the check would
be cleared and paid out.23 As a bank Branch Manager,
Raymundo is expected to be an expert in banking
procedures, and he has the necessary means to ascertain
whether a check, local or foreign, is sufficiently funded.
Raymundo’s act of approving the deposit to Ms. Juan’s
newly-opened peso checking account of the peso conversion
[P4,752,689.65]24 of the foreign check prior to the lapse of
the 21-day clearing period is the proximate cause why the
six (6) checks worth P4,000,000.00 were later encashed,
thereby causing the PNB undue injury. Defined as that
cause which, in natural and continuous sequence,
unbroken by any efficient intervening cause, produces
injury and without which the result would not have
occurred, the proximate cause can be determined by asking
a simple question: “If the event did not happen, would the
injury have resulted? If the answer is no, then the event is
the proximate cause.”25 If Raymundo did not disregard the
bank’s foreign check clearing policy when he approved
crediting of the peso conversion of Ms. Juan’s foreign check
in her newly-opened peso checking account, the PNB would
not have suffered losses due to the irregular encashment of
the six (6) checks.
It is well-settled that actual damages, to be recoverable,
must not only be capable of proof, but must actually be
proved with a reasonable degree of certainty. To justify an
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award of actual damages, there must be competent proof of

the actual amount of loss, credence can be given only to
claims which are duly supported by receipts, and courts
cannot simply rely on speculation, conjecture or guesswork
in determining the fact

_______________

23  Associated Bank v. Tan, 487 Phil. 512, 525; 446 SCRA 282, 292-293
(2004).
24  Records (Vol. II), p. 206.
25  Philippine National Bank v. Cheah Chee Chong, supra note 18 at p.
770; p. 61, citing Allied Banking Corporation v. Lim Sio Wan, G.R. No.
133179, March 27, 2008, 549 SCRA 504, 518.

 
 
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342 SUPREME COURT REPORTS ANNOTATED

Philippine National Bank vs. Raymundo

and amount of damages.26 While the PNB claims having

suffered damages to the extent of P4,000,000.00 due to the
encashment of checks drawn against uncollected deposit,
the testimonial and documentary evidence on record show
that it only incurred losses in the total sum of
P2,100,882.87. Based on the accounts receivable ledger27
and the PNB’s letter28 dated December 5, 1995,
Raymundo’s account receivable was reduced to
P2,100,882.87 after the application of six (6) check
payments aggregating P1,725,172.03 on October 1, 1993.
Confirming the two documentary evidence, Jose Rodrigo
Cabello, PNB’s own witness and former accountant of its
San Pedro Laguna Branch, has testified that the bank’s
losses out of Raymundo’s approval of the checks per its
accounts receivable ledger, is around P2,100,000.00:

[Atty. Reyes Geromo, counsel for PNB and for the prosecution]
Q. Mr. Witness, as of today do you know how much is still the
bank loss out of the said approval of withdrawal by the
accused?
xxx
[PNB Witness Jose Rodrigo Cabello]
A. Around P2,100,000.00, Sir. I think.
Q. And what was your basis Mr. Witness? Do you have evidence
to show that amount Mr. Witness?

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A. Yes, Sir.
Q. What particular document, Mr. Witness?
A. The Accounts receivable ledger, Sir.
Q. When you said accounts receivable ledger, is this the document
previously marked as Exhibit “P,” Mr. Witness?

_______________

26  Bacolod v. People, 714 Phil. 90, 99; 701 SCRA 229, 238 (2013).
27  Records (Vol. II), p. 205.
28  Id. (Vol. I), p. 2.

 
 

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Philippine National Bank vs. Raymundo

A. Yes, Sir.29

 
Cabello’s testimony is corroborated by Victor Arapan,
PNB’s witness and accountant of its San Pedro Branch as
of August 14, 2001, who testified that per its books of
account, the amount of P2,100,882.87 remained unpaid or
uncollected by the bank, and is still lodged as account
receivable of “Merry May Juan c/o Pablo Raymundo,” and
that as of said date, the damages sustained due to the
fraudulent encashment of the foreign check is
P5,524,023.57.30 However, considering that it failed to
formally offer in evidence or at least attach to the record
the statement of account in order to prove such higher
amount of damages, PNB can only be awarded actual
damages in the amount of P2,100,882.87.
Since PNB was unduly deprived of its use of the
P2,100,882.87 due to Raymundo’s gross negligence, the
Court also finds it proper to impose on such forbearance of
money the following legal interests on the damages
awarded, sans an express contract as to such interest rate,
in line with current jurisprudence:31 (1) twelve percent
(12%) per annum reckoned from the filing of the criminal
information on May 19, 1997 — which is the making of
judicial demand for his liability — until June 30, 2013;32 (2)
the reduced interest of six percent (6%) per annum from
July 1, 201333 until finality of this Deci-

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_______________

29  TSN, August 22, 2000, pp. 38-39.

30  TSN, August 14, 2001, pp. 8-9.
31   Nacar v. Gallery Frames, 716 Phil. 267, 282-283; 703 SCRA 439,
455-456 (2013); Secretary of the Department of Public Works and
Highways v. Tecson, G.R. No. 179334, April 21, 2015, 756 SCRA 389.
32  The last day of the effectivity of Central Bank (CB) Circular No. 905
which provides the twelve percent (12%) per annum interest rate for loan
or forbearance of money in the absence of an express contract as to such
rate.
33  The effectivity date of (CB) Circular No. 799 which provides the six
percent (6%) per annum interest rate for loan or forbearance of money in
the absence of an express contract as to such rate.

 
 
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Philippine National Bank vs. Raymundo

sion; and (3) the interest rate of 6% per annum from such
finality until fully paid.
WHEREFORE, premises considered, the petition is
GRANTED, and the Decision dated May 31, 2013 and the
Resolution dated August 14, 2013 of the Court of Appeals
in C.A.-G.R. CV No. 96760 are REVERSED and SET
ASIDE. Accordingly, petitioner Pablo V. Raymundo is
ordered to pay the Philippine National Bank actual
damages in the amount of P2,100,882.87 with the following
legal interest rates, in line with current jurisprudence:34 (1)
twelve percent (12%) per annum, reckoned from the filing
of the criminal information on May 19, 1997 until June 30,
2013; and (2) six percent (6%) per annum from July 1, 2013
until finality of this Decision; and (3) six percent (6%) per
annum from such finality until fully paid.
SO ORDERED.

Velasco, Jr. (Chairperson), Perez, Reyes and Jardeleza,

JJ., concur.

Petition granted, judgment and resolution reversed and

set aside.

Notes.—Gross negligence refers to negligence

characterized by the want of even slight care, acting or
omitting to act in a situation where there is a duty to act,
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not inadvertently but willfully and intentionally, with a

conscious indifference to consequences insofar as other
persons may be affected. It is the omission of that care
which even inattentive and thoughtless men never fail to
take on their own property.(Montallana vs. Office of the
Ombudsman, 678 SCRA 488 [2012])

34  Nacar v. Gallery Frames, supra note 31.

 
 
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The diligence required of banks is more than that of a

Roman paterfamilias or a good father of a family. The
highest degree of diligence is expected, considering the
nature of the banking business that is imbued with public
interest. (Allied Banking Corporation vs. Bank of the
Philippine Islands, 692 SCRA 186 [2013])
 
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