Westmont Bank v. Rosa-Ramos

MENDOZA, J.:

This is a Petition for Review under Rule 45 of the 1997 Rules of Court procedure seeking a partial review of the February 14, 2003 Decision1 and the October 2, 2003 Resolution2 of the Court of Appeals (CA), in CA-G.R. CV No. 63983, which modified the September 16, 1998 Decision of the Regional Trial Court, Branch 7, Manila (RTC) in Civil Case No. 89-17926 entitled, Myrna Dela Rosa-Ramos v. Westmont Bank, formerly Associated Bank, Domingo Tan, and William Co. The petition was filed on November 24, 2003 and received by this Court on December 15, 2003. The case was given due course on February 6, 2008. The Facts From 1986, respondent Myrna Dela Rosa-Ramos (Dela Rosa-Ramos) maintained a checking/current account with the United Overseas Bank Philippines3 (Bank) at the latter's Sto.

Cristo Branch, Binondo, Manila. In her several transactions with the Bank, Dela Rosa-Ramos got acquainted with its Signature Verifier, respondent Domingo Tan (Tan).4 In the course of their acquaintance, Tan offered Dela Rosa-Ramos a "special arrangement"5 wherein he would finance or place sufficient funds in her checking/current account whenever there would be an overdraft or when the amount of said checks would exceed the balance of her current account. It was their arrangement to make sure that the checks she would issue would not be dishonored.

Tan offered the service for a fee of P50.00 a day for every P40,000.00 he would finance. This financier-debtor relationship started in 1987 and lasted until1998.6 In order to guarantee payment for such funding, Dela Rosa-Ramos issued postdated checks covering the principal amount plus interest as computed by Tan on specified date. There were also times when she just paid in cash.7 Relative to their said agreement, Dela Rosa-Ramos issued and delivered to Tan the following Associated Bank checks8 drawn against her current account and payable to "cash,"

to wit: 1âwphi1