8 HON. PEDRO OMGERIZOND n is capacity 2s Presiding Juoge of the Court of Fist instance of Manta (Branch XL) dnc SPOUSES TIMOTEO AND OLINIPIA SANTIAGO, responcents REGALADO, J SUMMARY Si Sele = total of a ‘The bank becamé = a A ID ipa gay 20 ful 5) 1 lary damages and at's fee: a TE TT the bank PSB, tne uly ‘+ May 16, 1968, Sps. Santiago deposited with Fidelity Savings Bank P50,000.00, Sometime on July 6, 1968, ps. Santiago, deposited P50,000.00. total deposits = 100k Eanation a the defender 1S one QR tobe vue, issued Board, of the Bank's assets ‘+ The Superintendent of Banks took charge in the name of the Monetary Board, of the assets ofthe banks on GS AND MORTGAGE BANK, pettoner, 1 at the aggregate deposits of there ‘+ The Monetary Board issued its Resolution No. Fidelity Savings Bank: ‘+ The SoiGen fied a "Petition for Assistance and Supervision in Liquidation’ of the affairs of the bank with the Fi + iiataitaion Cot 0: ES eae GRID srcar ty Savings ano Morgage ba pesca Me one conernon te TIPS asses into money, processing of caims against and the manner and te of cistrbuting the proceeds from the assets of the Bank. The liquidation proceedings Is stil pending: ‘+The Sps. sent demand letters to herein defendants, demanding the immediate payment of the . wth damages against sand jorigage Ban al. (the case vs et al were eventual ‘+ CFI the bank to pay subject to the Bank Liquidation Rules and Regulations: (a) P90,000.00 with accrued interest unti fully paid; (©) 80,000.00 as exemplary damages; and (c) P10,000.00 as and for attorney's fees. GSEBwon (BIRRERD: i ne city Savings ans Mogae Bark maybe acucned ENTERS ‘directing the liquidation of the affairs of defendant ceposi even atts close by ne Cenral Bank by reason of nsoWen = Tis seed jurspruck gic sneha so eae incvar and sseauenty Crores ses oy teal Pie rreston ant cen; ate peta nen re bank ls acualy cose and nonoperatona - Coun afeeaiar ro © tls.a mate’ of common awedge- Whion Welle lal noc of, that what enable a bank to pay stipulated interest on money deposited with tis that thru the o able to generate funds to cover the pa King ar 19 ™m ‘can derive income, itis inconceivable how it can carry on as a depository obligated to pay stipulated interest. Conventionalwiston cates hE JAnd it can be said that all who deposit, money in banks are a oP. Foposition. Consequently. itshould be em 2 enc at tetas issued on February 18, 7909, ‘WON Sps. ar We tthe anates of ioral and ex an i) The tial cout found, an itis not csputed, thet ee wa rad fait onthe pat of petitioner bank ne tne other cetendantsn aoceptng tne pests ot pv ens. ‘+ Demand to pay was made and Civil Case No, 84800 was filed inthe trial court several months after the Central Bank nad ordered petitioner's closure, ‘+ Further, this case is not one of the specified or analogous cases wherein moral damages may be recovered. ‘+ There Is no valid basis for the award of exemplary damages which \s supposed to serve as a warning to other banks from dissipating their assets in anomalous transactions as there was no proof of such, Neither did the offending party actin a wanton, fraudulent, reckless, oppressive or malevolent manner. Netnermay atomeys peter bank may, heteoe righ ay bee tothe nonperomance 9 Mou be volte of he povsons on We anor tt te Spo cai shoe been red n nella OBMMGD ry Coi'Case No COTE ented “in Re: Liquidation of the Fidelity Savings and Morigage Bank," in he CFI. '* However, we do not believe that the decision rendered in the instant case would be violative of the legal provisions on preference and| the tral court puts it: ©... Butthis order ofp ‘understaod as ralsing these deposits to the category of preferred crecits of in ‘accordance with th ie CFI DISPOSITIVE: Decision MODIFIED. Bank to pay private respondents Timoteo and Olimpia Santiago the sum of P'90,000.00, with accrued interest until February 18, 1969. Award for damages DELETED.