Philippine Educa on Co., Inc. v. Soriano, et al., G.R. No.

L-22405, 30 June 1971

Facts:
Enrique Mon nola sought to purchase from the Manila Post Office 10 money orders (P200 each),
offering to pay for them with a private check. Mon nola was able to leave the building with his
check and the 10 money orders without the knowledge of the teller. Upon discovery, message
was sent to all postmasters and banks involving the unpaid money orders. One of the money
orders was received by the Philippine Educa on Co. as part of its sales receipt. It was deposited
by the company with the Bank of America, which cleared it with the Bureau of Post. The
Postmaster, through the Chief of the Money Order Division of the Manila Post Office informed
the bank of the irregular issuance of the money order. The bank debited the account of the
company. The company moved for reconsidera on.

Issue:
Whether or not postal money orders are nego able instruments.

Held:
No. Philippine postal statutes are pa erned from those of the United States, and the weight of
authority in said country is that Postal money orders are not nego able instruments inasmuch as
the establishment of a postal money order is an exercise of governmental power for the public’s
benefit. Furthermore, some of the restric ons imposed upon money order by postal laws and
regula ons are inconsistent with the character of nego able instruments. For instance, postal
money orders may be withheld under a variety of circumstances, and which are restricted to not
more than one indorsement