9/14/2021 BIGNA E -IM PHILIPPINE .

NION BANK OF PHILIPPINE

DIVISION

[ GR N . 171590, Feb 12, 2014 ]

BIGNAY EX-IM PHILIPPINES . UNION BANK OF PHILIPPINES

DECISION

DEL CASTILLO, J.:

The g negligence f he elle in defending i i le he e bjec ma e f he ale he eb
c n a ening he e e nde aking nde he deed f ale ec i i le again he claim f hi d
e n e l ing in he b e ' e ic i n f m he e am n bad fai h, and he b e i en i led he
emedie aff ded nde A icle 1555 f he Ci il C de.

[1] [2]
Bef e a e c n lida ed Pe i i n f Re ie n Ce i a i a ailing he A g 25, 2005 Deci i n f
[3]
he C f A eal (CA) in CA-G.R. CV N . 67788 a ell a i Feb a 10, 2006 Re l i n den ing he
a ie ' e ec i e m i n f ec n ide a i n.

Fac a A ecede

In 1984, Alf n de Le n (Alf n ) m gaged in fa f Uni n Bank f he Phili ine (Uni n Bank) eal
e i a ed a E eban Abada, L la Heigh , Q e n Ci , hich a egi e ed in hi and hi ife
R a i ' name and c e ed b T an fe Ce ifica e f Ti le (TCT) N . 286130 (TCT 286130).

The e a f ecl ed and ld a a c i n Uni n Bank. Af e he edem i n e i d e i ed, he bank

c n lida ed i ne hi , he e n TCT 362405 a i ed in i name in 1987.

In 1988, R a i filed again Alf n and Uni n Bank, Ci il Ca e N . Q-52702 f ann lmen f he 1984
m gage, claiming ha Alf n m gaged he e ih he c n en , and f ec n e ance.

[4]
In a Se embe 6, 1989 Le e -P al, Bigna E -Im Phili ine , Inc. (Bigna ), h gh i P e iden ,
Milag Ong Si (Si ), ffe ed cha e he e . The i en ffe a ed, am ng he , ha
The e i he bjec f a ending li iga i n be een R a i de Le n and Uni n Bank f
n llifica i n f he f ecl e bef e he Regi nal T ial C f Q e n Ci . Sh ld hi ffe be
a ed b managemen , e gge ha in ead f he al c ndi i nal ale, a deed f ab l e
ale be e ec ed d c men he an ac i n in fa bjec a m gage in fa f he bank
ec e he balance.

Thi d c men a i n i in ended i la e he e f m an li enden ha he f me ne ma

ann a e n he i le and all immedia e ec n i i n he e f ince he iginal T en i le a
b ned in 1988 hen he Ci Hall h ing he Regi e f Deed f Q e n Ci a g ed b fi e.[5]

[6]
On Decembe 20, 1989, a Deed f Ab l e Sale a e ec ed b and be een Uni n Bank and Bigna
he eb he e a c n e ed Bigna f P4 milli n. The deed f ale a e ec ed b he a ie
h gh Bigna ' Si and Uni n Bank' Seni Vice P e iden An h n R ble (R ble ). One f he e m f he
deed f ale i ed bel :

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Sec i n 1. The VENDEE he eb ec gni e ha he Pa cel/ f Land i h im emen he e n i

ac i ed h gh f ecl e ceeding and ag ee b he Pa cel/ f Land i h im emen [ ]
he e n in i e en a e and c ndi i n. The VENDOR he ef e d e n make an
e e en a i n a an i h e ec he Pa cel/ f Land b ha i ill defend i i le he
[7]
Pa cel/ f Land i h im emen [ ] he e n again he claim f an e n h m e e .

On Decembe 27, 1989, Bigna m gaged he e Uni n Bank, e mabl ec e a l an b ained

f m he la e .

On Decembe 12, 1991, a Deci i n[8] a ende ed in Ci il Ca e N . Q-52702, dec eeing a f ll :

WHEREFORE, emi e ab e c n ide ed, finding ha defendan Alf n de Le n, J . had al ne
e ec ed he m gage (E h. 7) n hei c nj gal e i h T.C.T. N . 286130 (E h. L) n a f ged
igna e (E h. M-1) f hi ife lain iff R a i T. de Le n, he C he eb decla e NULL and VOID
he f ll ing d c men :
1. Said M gage C n ac da ed A il 11, 1984 (E h. 7) e ec ed b and be een defendan Alf n de
Le n, J . al ne and Uni n Bank f he Phili ine ;

2. She iff' Sale da ed J ne 12, 1985 (E h. F);

3. T.C.T. N . 362405 (E h. O) i ed in he name f defendan Uni n Bank n J ne 10, 1987 hich

e laced he aid T.C.T. N . 286130;

4. Sale and m gage b and be een Uni n Bank and Bigna E -Im Phil. Inc. n Decembe 27, 1989
e he bjec c nj gal e a ann a ed n T.C.T. N . 362405 (E h. O).
F he , he C he eb decla e lain iff R a i T. de Le n he ne ill f he ndi ided ONE
HALF (1/2) f he bjec e c e ed b T.C.T. N . 286130.

The de da ed Feb a 2, 1988 g an ing a i f e i n in fa f Uni n Bank i he eb SET

ASIDE and QUASHED.

Defendan Alf n de Le n, J . i he eb de ed a hi c -defendan Uni n Bank f he Phili ine

he m f hi P1M l an i h in e e f m he ime he ame a e ended him hich i he eb
cha ged again hi he ndi ided ha e f ONE HALF ( ) f he bjec e i h T.C.T. N .
286130.

N damage i [ ic], h e e , adj dica ed again defendan Uni n Bank f he Phili ine he e being n
b an ial e idence ha i i in c m lici i h defendan Alf n de Le n, J . in he e en a i n f he
f ged igna e f hi ife lain iff n he S ecial P e f A ne (E h. M).

Wi h c , e ce f he fe i nal fee, if an , f he e amina i n f he f ged igna e (E h. M-1)

hich hall be aid b defendan Alf n de Le n, J .

SO ORDERED.[9]

Uni n Bank a ealed he ab e Deci i n i h he CA. I like i e gh a ne ial f he ca e, hich he ial

c denied. The CA a eal a di mi ed f fail e file a ellan ' b ief; he en ing Pe i i n f Re ie
[10]
i h hi C a imila l denied f la e filing and a men f legal fee .

[11]
Uni n Bank ne filed i h he CA an ac i n ann l he ial c ' Decembe 12, 1991 j dgmen . In a
[12]
Se embe 9, 1993 Re l i n, h e e , he CA again di mi ed he Pe i i n f fail e c m l ih
[13] [14]
S eme C Ci c la N . 28-91. The bank' M i n f Rec n ide a i n a nce m e denied.
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Thi ime, Bigna filed a Pe i i n f ann lmen f he Decembe 12, 1991 Deci i n, d cke ed a CA-G.R. SP
N . 33901. In a J l 15, 1994 Deci i n,[15] he CA di mi ed he Pe i i n. Bigna ' e l an Pe i i n f
Ce i a i i h hi C ffe ed he ame fa e.[16]

Mean hile, a a e l f he Decembe 12, 1991 Deci i n in Ci il Ca e N . Q-52702, Bigna a e ic ed f m

he e ; b hen, i had dem li hed he e i ing c e n he l and beg n c n c i n f a ne
b ilding.

R i g f he Regi a T ia C

On Ma ch 21, 1994, Bigna filed Ci il Ca e N . 94-1129 f b each f a an again e ic i n nde A icle

1547 and 1548 f he Ci il C de, i h damage , again Uni n Bank and R ble . The ca e a a igned
B anch 141 f he Maka i Regi nal T ial C (RTC). Bigna alleged in i C m lain [17] ha a he ime f he
ale, he i le he e a l d e fi e a he Regi e f Deed ; ha a he ime f he ale, Uni n
Bank e e en ed ha he e e e n lien enc mb ance e he e he han h e ann a ed n
he i le, and ha a ec n i i n f he l i le ld be made; ha n he e a ance , Bigna began and
c m le ed c n c i n f a b ilding n he e ; ha i ned ha he e a he bjec f a
ca e b R a i , and Bigna began ecei e c ie f c de and leading ela i e he ca e; ha i
i ed a demand Uni n Bank f he la e make g d n i a an ie ; ha de i e ch demand , i
a ea ed ha Bigna a in je a d f l ing he e a a e l f Uni n Bank' lack f cand and bad
fai h in n di cl ing he ending ca e. Bigna a ed be a a ded he f ll ing:
1. P 54,000,000.00 a ac al damage ;

2. P 2,000,000.00 a e em la damage ;

3. P 1,000,000.00 b a fa ne ' fee ; and

4. C f i.
[18]
In a Ma ch 10, 1995 O de f he ial c , R ble a d ed a a defendan n ag eemen f he
a ie and in ie f Uni n Bank' admi i n and c nfi ma i n ha i

had a h i ed all f R ble ' ac ela i e he ale.

[19]
Uni n Bank in e ed a M i n Di mi g nded n lack f fail e a e a ca e f ac i n,
claiming ha i made n a an ie in fa f Bigna hen i ld he e he la e n Decembe 20,
1989. The ial c defe ed he e l i n f he m i n n finding ha he g nd elied n did n
[20]
a ea be ind bi able. Uni n Bank h filed i An e Ad Ca elam, he e i alleged ha Bigna a
n an inn cen cha e f al e, kn ing he c ndi i n f he e a e idenced b Si ' Se embe 6,
1989 le e - al cha e he ame. I in e ed a c n e claim a ell, g nded n mi
n e igned b Si in fa f he bank 1) P mi N e N . 90-1446 da ed Decembe 20, 1990 f he
am n f P1.5 milli n a able n demand i h ann al in e e f 33%, and 2) P mi N e N . 91-0286
da ed Feb a 26, 1991 f he am n f P2 milli n a able n demand i h ann al in e e f 30% hich
e l ed in anding liabili ie , incl i e f in e e and enal ie , in he al am n f m e han P10.4
milli n a f Decembe 20, 1996.

D ing ial, Si e ified ha he a a clien f Uni n Bank, and ha he a a eg la b e f me f he

bank' ac i ed a e . She admi ed ha he main ained a cl e b ine ela i n hi i h R ble , h ld
iden if chea bank e ie f he and hen facili a e a i he in he ac i i i n he e f. T d hi , he
claimed ha he igned a e in blank and lef hem i h R ble , h ld hen e he ame in e a ing
he nece a d c men , ch a he ed Se embe 6, 1989 le e - al, hich Si claimed he kne
[21]
n hing ab .

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Si f he e ified ha f hi e ice , R ble a gi en a 3% c mmi i n each ime he b ained a l an f m

Uni n Bank. M e e , he claimed ha he gif ed R ble i h ha e f ck in ne f he c ai n ,
In e na i nal Gene al A Pa C a i n (IGAPC), and made him an inc a and di ec he e f.
[22]

Finall , Si e ified ha he e i ing c e n he bjec e a dem li hed and a ne ne a

c n c ed a a c f P20 milli n. F m he ne c e, Bigna ea ned m n hl en al inc me f
P60,000.00, n il he le ee a e ic ed n acc n f he e ec i n f he Deci i n in Ci il Ca e N . Q-52702.
[23]

On he he hand, R ble e if ing f Uni n Bank denied ha he e a ed he Se embe 6, 1989 le e -

al. He added ha Si a a i ed f he hen ending Ci il Ca e N . Q-52702. He al admi ed ha
Si ga e him ha e f ck in IGAPC and made him an inc a and di ec he e f.[24]

E idence n Uni n Bank' c n e claim a like i e ecei ed b he ial c .

On Ma ch 21, 2000, he ial c ende ed i Deci i n[25] in Ci il Ca e N . 94-1129, hich dec eed h :
WHEREFORE, deci i n i he eb ende ed de ing he defendan a lain iff he m f F
Milli n ( P4,000,000.00) Pe e e en ing he c f he land and T en Milli n ( P20,000,000.00)
Pe e e en ing he al e f he b ilding c n c ed n he bjec land, and he c f hi i.

The c n e claim in e ed b defendan i he eb di mi ed i h ej dice.

[26]
SO ORDERED.

The ial c f nd ha Uni n Bank' Seni Vice P e iden , R ble , main ained a ec e alliance and
ela i n hi f i h Bigna ' Si , he eb R ble ld l k f de i able e ie f m he bank'
a e in en , ec mmend hem Si , hen facili a e he neg ia i n, ale and d c men a i n f he . In
e n, he ld ecei e a 3% c mmi i n f m Si , me he benefi ; in fac , Si made him an
inc a and di ec f ne f he c a i n , IGAPC. The ial c belie ed Si ' claim ha he igned
a e in blank and lef hem i h R ble in de facili a e he neg ia i n and cha e f bank e ie
hich he b h c n ide ed be chea and iable. In hi c nnec i n, he ial c c ncl ded ha i a
R ble and n Si h e a ed he Se embe 6, 1989 le e - al n a iece f a e igned in blank b
Si , and ha e en h gh he ending Ci il Ca e N . Q-52702 a men i ned in he le e - al, Si in fac
had n kn ledge he e f. Thi i ed b he fac ha he ceeded c n c a c l b ilding n he
e ; if Si kne f he ending Ci il Ca e N . Q-52702, i i highl d b f l ha he ld d .

The ial c h decla ed ha Uni n Bank, h gh R ble , ac ed in bad fai h in elling he bjec e
Bigna ; f hi ea n, he i la i n in he Decembe 20, 1989 deed f ale limi ing Uni n Bank' liabili
in ca e f e ic i n cann a l , beca e nde A icle 1553 f he Ci il C de, "[a]n i la i n e em ing he
end f m he bliga i n an e f e ic i n hall be id, if he ac ed in bad fai h." M e e , i held ha
in i handling f Ci il Ca e N . Q-52702, he bank a g il fg negligence am n ing bad fai h,
hich h c n a ened i nde aking in he deed f ale "defend i i le he Pa cel/ f Land i h
im emen he e n again he claim f an e n ha e e ."

In e l ing he c n e , he ial c a lied A icle 1555 f he Ci il C de, hich ide h :

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A . 1555. When he a an ha been ag eed n n hing ha been i la ed n hi in , in ca e

e ic i n cc , he endee hall ha e he igh demand f he end :

(1) The e n f he al e hich he hing ld had a he ime f he e ic i n, be i g ea e le han

he ice f he ale;

(2) The inc me f i , if he ha been de ed deli e hem he a h n he i again him;

(3) The c f he i hich ca ed he e ic i n, and, in a e ca e, h e f he i b gh again

he end f he a an ;

(4) The e en e f he c n ac , if he endee ha aid hem;

(5) The damage and in e e , and namen al e en e , if he ale a made in bad fai h.

Th , i held ha Bigna a en i led he e n f he al e f he e ( P4 milli n), a ell a he c

f he b ilding e ec ed he e n ( P20 milli n), ince Uni n Bank ac ed in bad fai h. A he ame ime, he ial
c held ha he bank' c n e claim a n a all c nnec ed i h Bigna ' C m lain , hich make i a
e mi i e c n e claim f hich he d cke fee h ld acc dingl be aid. Since he bank did n a he
d cke fee , he ial c held ha i did n ac i e j i dic i n e i c n e claim; h , i di mi ed he
ame.

R i g f he C fA ea

Uni n Bank k he ial c ' Ma ch 21, 2000 Deci i n he CA n a eal. On A g 25, 2005, he CA
i ed he a ailed Deci i n, dec eeing a f ll :
WHEREFORE, he in an A eal i PARTLY GRANTED. J dgmen i he eb ende ed de ing
defendan -a ellan a lain iff-a ellee he m f P4,000,000.00 e e en ing he c f he land
and P20,000,000.00 e e en ing he al e f he b ilding c n c ed n he bjec land.

On he C n e claim, j dgmen i ende ed de ing lain iff-a ellee a defendan -a ellan he

inci al am n f P1,500,000.00 nde P mi N e N . 90-1446 da ed Decembe 18, 1990, l
he i la ed in e e and i la ed enal cha ge f m da e f ma i f he l an f m J ne 6,
1991 n il i f ll a men and al a he inci al am n f P2,000,000.00 nde P mi N e
N . 90-0286 da ed Feb a 25, 1991, l he i la ed in e e and i la ed enal cha ge f m
da e f ma i f he l an f m A g 26, 1991 n il f ll a men he e f.

N n ncemen a c .

[27]
SO ORDERED.

A l ing A icle 1548 and 1549 f he Ci il C de,[28] he CA held ha Uni n Bank i liable an i
c mmi men nde he Decembe 20, 1989 deed f ale defend he i le he e again he claim f
hi d a ie . I ha ed he ial c ' ini n ha he bank a g il f negligence in he handling and
ec i n f Ci il Ca e N . Q-52702, f hich ea n i h ld be made an e able, ince i l i i le
he h le e hen i c ld ha e ec ed i igh Alf n ' ha e he ein c n ide ing ha he
Deci i n in Ci il Ca e N . Q-52702 me el a a ded R a i ' c nj gal ha e. In he d , he CA in ima ed
ha if Uni n Bank e e ci ed dence, i c ld ha e main ained a lea i igh and i le Alf n ' ne-half
ha e in he e , and he ial c ' Deci i n c m le el n llif ing he Alf n -Uni n Bank m gage,
he bank' ne i le TCT 362405, and he Uni n Bank-Bigna ale c ld ha e been a ided.

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The CA added ha he decla a i n c n ained in he Se embe 6, 1989 le e - al he effec ha Si

kne ab he ending Ci il Ca e N . Q-52702 cann bind Bigna beca e he al a edl
e a ed and igned b Si in he e nal ca aci , and n f and in behalf f Bigna . I f he affi med he
ial c ' ie ha i a R ble and n Si h e a ed he aid le e - al n a iece f a e hich
he igned in blank and lef i h R ble facili a e he an ac i n i h Uni n Bank.

Rega ding he bank' c n e claim, he CA held ha Uni n Bank imel aid he d cke fee he ef
am n ing P32,940.00 a he ime i filed i An e Ad Ca elam n N embe 4, 1994, a h n b
Official Recei N . 4272579 and 4271965 ch effec and he bbe am ed ma k n he face f he
an e i elf. I added ha ince he ial c ecei ed he bank' e idence n he c n e claim d ing ial, i
h ld ha e made a ling he e n.

Bigna filed i M i n f Pa ial Rec n ide a i n[29] e i ning he a ella e c ' ling n Uni n
Bank' c n e claim. On he he hand, Uni n Bank in i M i n f Rec n ide a i n [30] k e ce i n
he CA' a lica i n f A icle 1548 and 1549 f he Ci il C de, a ell a i finding ha he bank a
negligen in he handling and ec i n f Ci il Ca e N . Q-52702.

On Feb a 10, 2006, he CA i ed he ec nd a ailed Re l i n den ing he a ie ' e ec i e m i n f

ec n ide a i n.

Th , he e en Pe i i n e e filed. G.R. N . 171590 a ini ia ed b Bigna , hile G.R. N . 171598 a filed

b Uni n Bank. In a J ne 21, 2006 Re l i n[31] f he C , b h Pe i i n e e de ed c n lida ed.

I e

The f ll ing i e a e ai ed:

B Bigna a e i i ne in G.R. N . 171590

1. IN A PERMISSIVE COUNTERCLAIM, WHEN SHOULD THE DOCKET FEES BE PAID TO ENABLE
THE TRIAL COURT TO ACQUIRE JURISDICTION OVER THE CASE?

2. IN THE EVENT OF NON-PAYMENT OF DOCKET FEES FOR PERMISSIVE COUNTERCLAIMS,

[32]
CAN THE COURT DISMISS THE SAID COUNTERCLAIMS?

B Uni n Bank a e i i ne in G.R. N . 171598

The i n f he [D]eci i n f he H n able C f A eal da ed A g 25, 2005 de ing
e i i ne a i ae e nden he al am n f P24.0 milli n h ld be e a ide f i ha
al ge he ign ed:
I. THE TESTIMONY OF ROBLES;

II. THAT THE LETTER-PROPOSAL DATED SEPTEMBER 6, 1989 WAS SIGNED BY SIY IN
BEHALF OF (BIGNAY);

III. THE FACT THAT THE APPLICATION OF ARTS. 1548 AND 1549 OF THE CIVIL CODE WAS
PATENTLY ERRONEOUS.[33]

The Pa ie ' Re ec i e A g e

G.R. N . 171590. A e i i ne in G.R. N . 171590, Bigna egi e i d b a he he Uni n Bank

indeed aid he d cke fee n i e mi i e c n e claim, a g ing ha if he bank indeed aid he d cke fee ,
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he ial c ld ha e held in i Ma ch 21, 2000 Deci i n; in ead, i ecificall decla ed he ein ha

he d cke fee n he c n e claim emained n aid a ha in in ime. In he d , Bigna a ea
in in a e ha he e a an i eg la i nding he bank' alleged a men f he d cke fee n i
c n e claim. I add ha ince Uni n Bank i g il f negligence and bad fai h in an ac ing i h Bigna , i
h ld be enali ed h gh he e di mi al f i c n e claim; he C h ld in ead e i e Uni n
Bank ec e i claim in a e a a e ac i n.

In he al e na i e, Bigna claim ha he am n f P1,039,457.33 h ld be ded c ed f m i adj dged

liabili ie Uni n Bank, a i ha been ed d ing ial ha i aid ch am n he bank, a h n b
ecei d l ma ked and ffe ed in e idence a E hibi "H" "H-6."

Bigna h a in i Pe i i n ha he a ailed di ii n f he CA be m dified he e en ha Uni n

Bank' c n e claim h ld be denied and di mi ed.

In i C mmen [34] a ing ha he CA' ling n i c n e claim be affi med, Uni n Bank in i ha i
imel aid he d cke fee n i c n e claim, a g ing ha he fficial ecei ing a men a ell a he
bbe am -ma k n he face f i an e ma n be e ned b Bigna ' ba ele ici n , claim and
in in a i n n ed b c n e ing e idence f. I add ha , c n a Bigna ' a e i n, a
e a a e ca e f he ec i n f i c n e claim i nnece a ince he ame ma fficien l be ied in
Ci il Ca e N . 94-1129 eci el a a e mi i e c n e claim; and b all ing i e mi i e c n e claim,
m l i lici f i i a ided.

In a Re l [35] he bank' C mmen , Bigna am ng he ehemen l in i ha a he ime f he

endi i n f he ial c ' j dgmen in Ci il Ca e N . 94-1129, Uni n Bank had n e aid he d cke fee
n i c n e claim; he bank' claim ha i aid he d cke fee hen i filed i An e Ad Ca elam i
ab l el e i nable. If indeed he bank aid he d cke fee , hen i h ld ha e e i ned he ial c '
di mi al f i c n e claim in a m i n f ec n ide a i n and a ached he ecei h ing i a men f
he fee ; e i did n . Be ide , if indeed he fac f a men f d cke fee a am ed n he face f he
bank' An e Ad Ca elam hen i filed he ame, he ial c h ld ha e n iced i , a lea i
a en i n ld ha e been di ec ed he fac ; b i a n . And if indeed he d cke fee e e aid a ea l
a 1994, i i inc edible h Uni n Bank ne e inf med he ial c fi a men , e en af e he ad e e
Deci i n in he ca e a ende ed. Bigna add ha in a Se embe 12, 2005 le e [36] he Cle k f C f
he Maka i Ci RTC, i c n el in i ed in he ci c m ance nding he dden a ea ance f fficial
ecei c ie f hich e e a ached he le e indica ing ha Uni n Bank aid he d cke fee n i
e mi i e c n e claim, hen i a ea ha n ch a men a in fac made; n , h e e , i ha
n ecei ed an e l f m he aid ffice.

G.R. N . 171598. In i Pe i i n in G.R. N . 171598, Uni n Bank in i ha he Se embe 6, 1989 le e -

al effec i el limi ed i liabili f e ic i n ince f m aid le e i i een ha Bigna kne bef ehand
f he endenc f Ci il Ca e N . Q-52702. I in i ha nde he Decembe 20, 1989 deed f ale, i did n
make an e e en a i n a an i h e ec he e ; h , he a lica i n f A icle 1548 and
1549 f he Ci il C de b he CA a e ne . Th , he bank eek a a ial e e al f he CA' di ii n
a ic la l he i n f he Deci i n hich h ld i liable a Bigna he e ec i e m f P4 milli n f
he c f he land, and P20 milli n f he c f he b ilding.

In i C mmen ,[37] Bigna claim ha in ging he C c n ide he e im n f R ble and Si '

decla a i n in he Se embe 6, 1989 le e - al, Uni n Bank i ai ing e i n f fac in i Pe i i n
hich hi C ma n e l e. I like i e ei e a e i a g men ela ing he bank' c n e claim; nl
hi ime, Bigna claim ha he fficial ecei e idencing he bank' ed a men f he d cke fee
e e fal ified.

O R ling

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The C find f Bigna .

Indeed, hi C i c n inced f m an e amina i n f he e idence and b he c nc ing ini n f he

c bel ha Bigna cha ed he e ih kn ledge f he ending Ci il Ca e N . Q-52702.
Uni n Bank i he ef e an e able f i e e nde aking nde he Decembe 20, 1989 deed f ale
"defend i i le he Pa cel/ f Land i h im emen he e n again he claim f an e n
ha e e ." B hi a an , Uni n Bank e e en ed Bigna ha i had i le he e , and b
a ming he bliga i n defend ch i le, i mi ed d a lea in g d fai h and i h fficien
dence, if n he be f i abili ie .

The ec d e eal , h e e , ha Uni n Bank a g l negligen in he handling and ec i n f Ci il

Ca e N . Q-52702. I a eal f he Decembe 12, 1991 Deci i n in aid ca e a di mi ed b he CA f
fail e file he e i ed a ellan ' b ief. Ne , he en ing Pe i i n f Re ie n Ce i a i filed i h hi
C a like i e denied d e la e filing and a men f legal fee . Finall , he bank gh he ann lmen
f he Decembe 12, 1991 j dgmen , e again, he CA di mi ed he e i i n f i fail e c m l ih
S eme C Ci c la N . 28-91. A a e l , he Decembe 12, 1991 Deci i n became final and e ec ,
and Bigna a e ic ed f m he e . S ch negligence in he handling f he ca e i fa f m c inciden al;
i i decidedl gla ing, and am n bad fai h. "[N]egligence ma be cca i nall g a am n
malice [ bad fai h]." [38] Indeed, in c l a c ac al b each f c n ac , g negligence f a a
am n ing bad fai h i a g nd f he ec e f damage b he inj ed a . [39]

E ic i n hall ake lace hene e b a final j dgmen ba ed n a igh i he ale an ac im able

he end , he endee i de i ed f he h le fa a f he hing cha ed.[40] In ca e e ic i n cc ,
he endee hall ha e he igh demand f he end , am ng he , he e n f he al e hich he hing
ld had a he ime f he e ic i n, be i g ea e le han he ice f he ale; he e en e f he c n ac ,
if he endee ha aid hem; and he damage and in e e , and namen al e en e , if he ale a made in
bad fai h.[41] The e a ea be n di ea he al e f he b ilding c n c ed n he e b
Bigna ; he nl i e ai ed b Uni n Bank in he e Pe i i n i he ie f he a a d f damage , and he
am n he e f i n in i e. The a a d in fa f Bigna f P4 milli n, he c n ide a i n c f he
e , and P20 milli n he al e f he b ilding i e ec ed he e n i n l nge in i e and i h in de .

H e e , he C di ag ee i h he CA n he i e f Uni n Bank' c n e claim. Bigna c ec l b e e

ha if he bank indeed aid he d cke fee he ef , he ial c ld ha e held in i Ma ch 21, 2000
Deci i n; e in i j dgmen , he ial c ecificall decla ed ha he d cke fee emained n aid a he
ime f i i ing, h
Anen he c n e claim in e ed b defendan f he c llec i n f ce ain m f m ne ad e ed
ea lie he e f [ ic], hi C c ld n e e ci e j i dic i n e he ame a defendan did n a he
d cke fee he ef . Al h gh he c n e claim e e den mina ed a c m l in he an e , he
ma e he ein alleged e e n c nnec ed i h he lain iff' c m lain . The c n e claim c ld and
inde enden l f m he lain iff' c m lain hence he a e a [ ic] e mi i e c n e claim . D ing he
e- ial, hi C had al ead led ha he c n e claim e e e mi i e e he ec d h ed ha
defendan had n aid he d cke fee . Thi C he ef e ha n ac i ed j i dic i n e aid ca e.
[42]

And if i i e ha he bank aid he d cke fee n i c n e claim a ea l a in 1994, i ld ha e

ig l in i ed n ch fac af e being a i ed f he ial c ' Ma ch 21, 2000 Deci i n. I i indeed
i ing ha he ed a men a ne e ai ed b he bank in a imel m i n f ec n ide a i n,
c n ide ing ha he ial c di mi ed i c n e claim; if he e i an ne ime di ec he c '
a en i n ch a men and ca e he c n e claim be ein a ed, i a a ha in and n he . All i
had d a e a men b e en ing he c he fficial ecei an he acce able
d c men a e idence, and h ec e he e e e al f he ling n i c n e claim. S ill, n hing a
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hea d f m he bank n he i e, n il i filed i b ief i h he CA n a eal. Indeed, " ha e e i e gnan

he anda d f h man kn ledge, b e a i n and e e ience bec me inc edible and m lie ide
j dicial c gni ance."[43]

M e han he ab e, hi C find e and c edible he ial c ' e e decla a i n ha n d cke fee

ha e been aid n he bank' c n e claim; he ial c ' n ncemen enj he e m i n f
eg la i . Indeed, he dden a ea ance f he ecei edl e idencing a men f he d cke fee i
highl e i nable and i eg la , and de e e be h ghl in e iga ed; he ac a i n f he bank
ela i e he e g again he c mm n e e ience f mankind, if he a e n en i el an mal .

WHEREFORE, he C e l e a f ll :

1. The Pe i i n in G.R. N . 171590 i GRANTED. The A g 25, 2005 Deci i n and Feb a 10, 2006
Re l i n f he C f A eal in CA-G.R. CV N . 67788 a e MODIFIED, in ha Uni n Bank f he
Phili ine ' c n e claim i de ed DISMISSED.

2. The Pe i i n in G.R. N . 171598 i DENIED.

SO ORDERED.

Ca i , (Chai e ), B i , Pe e , and Pe la -Be abe, JJ., c nc .

[1] R ll , G.R. N . 171590, . 9-32; G.R. N . 171598, . 66-84.

[2] CA ll , . 219-235; enned b A cia e J ice L ceni N. Tagle and c nc ed in b A cia e

J ice Ma in S. Villa ama, J . and Bien enid L. Re e (n Membe f hi C ).

[3] Id. a 286-288.

[4] Rec d , V l. I, . 232.

[5] Id.

[6] Id. a 15-17.

[7] Id. a 15.

[8] Id. a 35-45; enned b J dge Ped T. San iag .

[9] Id. a 44-45.

[10] R ll , G.R. N . 171590, . 37-38.

[11] D cke ed a CA-G.R. SP N . 31689.

[12] R ll , G.R. N . 171590, . 38.

[13] Addi i nal Re i i e F Pe i i n Filed Wi h The S eme C And The C Of A eal T P e en

F m Sh ing O M l i le Filing Of Pe i i n And C m lain .

[14] R ll , G.R. N . 171590, . 38; Rec d , V l. II, . 371-376.

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[15] Rec d , V l. 1, . 243-252.

[16] R ll , G.R. N . 171590, . 38-39.

[17] Rec d , V l. I, . 1-14.

[18] Id. a 108.

[19] Id. a 25-31.

[20] Id. a 84-91.

[21] R ll , G.R. N . 171590, . 57.

[22] Id. a 57-58.

[23] Id. a 58.

[24] Id.

[25] Rec d , V l. II, . 492-502; enned b J dge Man el D. Vic i .

[26] Id. a 502.

[27] Id. a 49-50.

[28] A . 1548. E ic i n hall ake lace hene e b a final j dgmen ba ed n a igh i he ale an
ac im able he end , he endee i de i ed f he h le fa a f he hing cha ed.

The end hall an e f he e ic i n e en h gh n hing ha been aid in he c n ac n he bjec .

The c n ac ing a ie , h e e , ma inc ea e, dimini h, e hi legal bliga i n f he end .

A . 1549. The endee need n a eal f m he deci i n in de ha he end ma bec me liable f

e ic i n.

[29] CA ll , . 254-268.

[30] Id. a 240-251.

[31] R ll , G.R. N . 171590, . 69.

[32] Id. a 21.

[33] 74-75.

[34] Id. a 132-139.

[35] Id. a 153-165.

[36] Id. a 166.

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[37] Id. a 172-184.

[38] Ba ka d, I c. . D . Felicia , 529 Phil. 53, 61 (2006), ci ing F e . Mi a da, 105 Phil. 266, 276 (1959).

[39] Cag g . Pla e De el me Ba k, 510 Phil. 51, 63 (2005).

[40] CIVIL CODE, A . 1548.

[41] CIVIL CODE, A . 1555.

[42] Rec d , V l. II, . 501.

[43] Pe le . De G ma , G.R. N . 192250, J l 11, 2012, 676 SCRA 347, 360.

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