SIMEX INTERNATIONAL (MANILA) INC.

v CA, 183 SCRA 360 (1992)

DOCTRINE: As a business affected with public interest and because of the nature of its functions, the bank is under
obligation to treat the accounts of its depositors with meticulous care, always having in mind the fiduciary nature of
their relationship.
FACTS
Simex was a food exporter that drew stock in the Philippines then sold it abroad. It deposited 100k in Traders Royal
Bank , raising the balance to P190,380.74, then later issued checks that were suddenly dishonored California
Manufacturing and others issued demand letters for the dishonored check. Simexs credit line was canceled because
of the dishonored check Traders bank said the deposit of 100k was not credited, the error was rectified but Simex
filed a case against the bank and demanded reparation for gross and wanton negligence: not met complaint for 1m
moral and 500k exemplary damages + 25% atty. fees and costs CFI: moral and exemplary damages not called for,
but nominal damages 20k plus 5k atty. fees affirmed by CA
ISSUE
Was there Gross negligence in not crediting the deposit?
RULING
YES. Banking system: indispensable institution in modern world; plays vital role in economic life of every civilized
nation. Trusted and active associate depositor expects bank to treat account with utmost fidelity, must record
each transaction accurately Fiduciary nature of relationship Traders was remiss in duty 20k moral damages,
50k exemplary (by way of example or correction for the public good)