Dy v. Philippine Banking Corporation

CARPIO, J.:

Before the Court is a Petition for Review on Certiorari under Rule 45 of the Rules of Court, assailing the 22 July 2004 Decision2 and the 17 February 2005 Resolution3 of the Court of Appeals (CA) in CA-G.R. CV No. 57331. The CA affirmed with modification the 14 July 1997 Decision4 of the Regional Trial Court (RTC) of Pasig City, Branch 154, in Civil Case No. 58672, an action for sum of money filed by respondent Philippine Banking Corporation (Philbank) against petitioners Virginia Judy Dy (Dy), Gabriel Dy,5 Marina International Marketing Corporation (Marina), Caezar Tanjutco (Tanjutco), .Joel Alindogan (Alindogan), Efren Mercado (Mercado), and Intercontinental Cargo Specialists, Inc. The Facts Sometime in 1989, Philbank's Internal Auditing Department conducted a verification and audit of Marina's accounts with the former's Balintawak, Quezon City branch.6 The audit team discovered that there were "fraudulent manipulations and falsification of commercial documents involving, among others, bank drafts, invoices, bills of lading, packing list, certificates of origin, medical and quarantine clearances and other related documents resulting in loss to the bank of the amount of US$1,538,094.49"

in Marina's export accounts with the bank.7 On 22 September 1989, Philbank filed a complaint for a sum of money with preliminary attachment against Marina, Tanjutco, and Alindogan. The complaint was later amended to include the Dy spouses and Mercado as defendants.8 The investigation had revealed that in June 1989, Tanjutco and Alindogan negotiated with Philbank the following export shipping documents: Date of Negotiation Reference No. Amount June 7, 1989 EBBAL 140.89 US$ 116,688.14 June 7, 1989 EBBAL 141.89 US$ 118,012.26 June 9, 1989 EBBAL 144.89 US$ 116,656.37 June 15, 1989 EBBAL 145.89 US$ 91,833.90 June 15, 1989 EBBAL 146.89 US$ 92,202.42 June 15, 1989 EBBAL 147.89 US$ 93,104.72 June 15, 1989 EBBAL 148.89 US$ 91,117.16 June 15, 1989 EBBAL 149.89 US$ 110,997.54 June 22, 1989 EBBAL 160.89 US$ 105,167.14 June 23, 1989 EBBAL 161.89 US$ 104,339.47 June 23, 1989 EBBAL 162.89 US$ 105,969.07 June 23, 1989 EBBAL 163.89 US$ 101,790.06 June 24, 1989 EBBAL 165.89 US$ 99,717.80 June 24, 1989 EBBAL 166.89 US$ 95,416.68 June 24, 1989 EBBAL 167.89 US$ 95,081.76 TOTAL