Citytrust vs. IAC

Citytrust banking Corp., vs. Intermediate Appellate Court

GR No. 84281 May 27, 1994

 Vitug, J:

Facts:

            Emme Herrero, businesswoman, made regular deposits with Citytrust Banking Corp. at its Burgoa branch in Calamba, Laguna. She deposited the amount of P31, 500 in order to amply cover 6 postdated checks she issued. All checks were dishonored due to insufficiency of funds upon the presentment for encashment. Citytrust banking Corp. asserted that it was due to Herrero’s fault that her checks were dishonored, for he inaccurately wrote his account number in the deposit slip. RTC dismissed the complaint for lack of merit. CA reversed the decision of RTC.

Issue:

            Whether or not Citytrust banking Corp.  has the duty to honor checks issued by Emme Herrero despite the failure to accurately stating the account number resulting to insufficiency of funds for the check.

Held:

            Yes, even it is true that there was error on the account number stated in the deposit slip, its is, however, indicated the name of “Emme Herrero.” This is controlling in determining in whose account the deposit is made or should be posted. This is so because it is not likely to commit an error in one’s name than merely relying on numbers which are difficult to remember. Numbers are for the convenience of the bank but was never intended to disregard the real name of its depositors. The bank is engaged in business impressed with public trust, and it is its duty to protect in return its clients and depositors who transact business with it. It should not be a matter of the bank alone receiving deposits, lending out money and collecting interests. It is also its obligation to see to it that all funds invested with it are properly accounted for and duly posted in its ledgers.