G.R. No. 120639. September 25, 1998 ISS+E: BPI Express Card Corporation, petitioner, vs.

CA and Ricardo J. Marasigan, respondents. FACTS: KAPUNAN, J.: The case arose rom the d!shonor o the cred!t card o the plaintiff Atty. Ricardo J. Marasigan b" #a e $dr!at!co %&ecember 8, 1989'. ()a!nt! *as !ss+ed a #red!t #ard b" BPI Express Card Corporation %BECC'. The!r contract+a) re)at!ons *ent on smooth)" +nt!) h!s statement o acco+nt or ,ctober 1989 amo+nt!n- to P8,987.84 *as not pa!d !n d+e t!me. .e *as !n ormed b" h!s secretar" that de endant *as demand!n!mmed!ate pa"ment and *as requiring him to issue a check or (15/ *h!ch *o+)d !nc)+de h!s +t+re b!))s, and *as threaten!n- to s+spend h!s cred!t card. ()a!nt! !ss+ed a 0ar 1ast 2an3 #hec3 !n the amo+nt o (15/, postdated December 1 , 1989 *h!ch *as rece!ved on Novem er !". ,n Novem er !#, de endant served p)a!nt! a )etter b" ordinary mail !n orm!n- h!m o the temporar" s+spens!on o the pr!v!)e-es o h!s cred!t card and the !nc)+s!on o h!s acco+nt n+mber !n the!r #a+t!on 4!st. .e *as a)so to)d to re ra!n rom +rther +se o h!s cred!t card to avo!d an" !nconven!ence, +n)ess he sett)es h!s o+tstand!n- acco+nt *!th the de endant *!th!n 5 da"s rom rece!pt o the )etter, his mem ership $i%% e permanent%& cance%%ed. There is no sho ing that the plainti!! recei"ed this letter #e!ore $ecem#er %. #on !dent that he had sett)ed h!s acco+nt, p)a!nt! !nv!ted some -+ests on 'ecem er # !n #a e $dr!at!co. 5hen he presented h!s cred!t card or the b!)) amo+nt!n- to P&'()'*, sa!d card as dishonored. (ne o) his guests, paid the i%% & using her o$n credit card* ()a!nt! sent de endant )etter t*!ce rem!nd!n- the )atter that he had )on- resc!nded and cance))ed *hatever arran-ement he entered and re6+est!n- or h!s correct b!))!n-, and or an e7p)anat!on *!th!n !ve %5' da"s rom rece!pt thereo *h" h!s card *as d!shonored desp!te ass+rance to the contrar" b" de endant8s personne)9!n9 char-e, other*!se the necessar" co+rt act!on sha)) be !)ed to ho)d defendant responsible for t!e !"miliation and embarrassment s"ffered by !im. The de endant served !ts !na) demand to the p)a!nt! %:arch 21, 1990' re6+!r!nh!m to pa" !n +)) h!s overd+e acco+nt or ace co+rt act!on a)so to rep)ace the postdated chec3 *!th cash or ace cr!m!na) s+!t or v!o)at!on o the 2( 22. Pri#ate respondent !)ed a comp)a!nt or dama-es a-a!nst pet!t!oner be ore the RT#9:a3at! *h!ch r+)ed or pr!vate respondent, !nd!n- that here!n pet!t!oner ab+sed !ts r!-ht !n contravent!on o Article 19, N##. There !s reason to be)!eve that p)a!nt! *as ass+red b" de endant o the cont!n+ed honor!n- o h!s cred!t card so )on- as he pa"s h!s ob)!-at!on o (15/. (et!t!oner appea)ed to the #$ *h!ch $00;R:1& the r+)!n- o the tr!a) co+rt. &oes pet!t!oner have the r!-ht to s+spend the cred!t card o the pr!vate respondent< ,ES) ;s a postdated chec3 an e ect!ve pa"ment< -.)

/E0$: 1$%%&' 12=nder the terms and cond!t!ons o the cred!t card, , an" card *!th o+tstand!n- ba)ances a ter %30' da"s rom or!-!na) b!))!n->statement sha)) a+tomat!ca))" be s+spended. The prov!s!on o the cred!t card st!p+)ates that th!rt" da"s rom the non9pa"ment o b!))!n- dated, pet!t!oner corporat!on co+)d a+tomat!ca))" s+spend h!s cred!t card. %$%%&' (' ?es, there *as an arran-ement bet*een the part!es *here!n the pet!t!oner re6+!red the pr!vate respondent to !ss+e a chec3 *orth P3(4 as pa"ment or the )atter8s b!))!n-s. .o*ever, the pr!vate respondent *as not ab)e to comp)" *!th h!s ob)!-at!on. The a-reement *as or the !mmed!ate pa"ment o) the outstanding account.
+ ,& question ,r* -itness is, did &ou pa& this P#,.#/*#0 in charge o) interest and pena%ties immediate%& in cash1 A In cash no, ut in check, sir* + And &ou as a %a$&er &ou kno$ that a check is not considered as cash specia%%& $hen it is postdated sent to the de)endant1 A 2hat is correct, sir*

The p+rpose o the arran-ement bet*een the part!es *as or the !mmed!ate pa"ment o the pr!vate respondent8s o+tstand!nacco+nt, !n order that h!s cred!t card *o+)d not be s+spended. The chec3 *as postdated 1 December 1989. Sett)ed !s the doctr!ne that a chec3 !s on)" a s+bst!t+te or mone" and not mone", the de)!ver" o s+ch an !nstr+ment does not, b" !tse) operate as pa"ment, especia%%& true )or a postdated check* Th5s6 the iss5ance #y the pri"ate respondent o! the postdated chec7 as not e!!ecti"e payment. There !s no )e-a) and act+a) bas!s or pr!vate respondent8s assert!on that !n cance)!n- the cred!t card o the pr!vate respondent, pet!t!oner ab+sed !ts r!-ht +nder the terms and cond!t!ons o the contract. To !nd the e7!stence o an ab+se o r!-ht +nder $rt!c)e 19 the o))o*!n- e)ements m+st be present: %1' There !s a )e-a) r!-ht or d+t"@ %2' *h!ch !s e7erc!sed !n bad a!th@ %3' or the so)e !ntent o preA+d!c!n- or !nA+r!n- another. ;t *as pet!t!oner8s a!)+re to sett)e h!s ob)!-at!on *h!ch ca+sed the s+spens!on o h!s cred!t card and s+bse6+ent d!shonor at #a $dr!at!co. .e can not no* pass the b)ame to the pet!t!oner or not not! "!n- h!m o the s+spens!on o h!s card.

The dec!s!on o the #$ !s SET ASI$E. (r!vate respondent !s &;R1#T1& to pa" h!s o+tstand!n- ob)!-at!on *!th the pet!t!oner.