The Supreme Court (SC) has declared Banco de Oro Universal Bank, Inc. (BDO) negligent for allowing unauthorized withdrawals exceeding PHP8 million from a business owner’s bank account. The ruling holds BDO responsible for damages to depositor Liza Seastres, revealing unauthorized transactions conducted by Anabelle Benaje, the Chief Operating Officer of Seastres’ business.
The court emphasized that BDO had established rules for representative check withdrawals, which were disregarded in this case. Despite having safeguards in place for depositor and payee protection, BDO failed to adhere to its own procedures, violating its fiduciary duty to the account holder.
The SC highlighted BDO’s neglect in safeguarding Seastres’ accounts, neglecting to verify the authenticity of signatures on withdrawal slips and manager’s checks. They pointed out that BDO allowed Benaje to process unauthorized withdrawals without confirming the authority from Seastres.
Furthermore, the alleged written authorization did not permit withdrawals; it was limited to deposits, inquiries, pick-ups, and printouts on behalf of Seastres. The Court of Appeals initially ruled that Seastres had contributory negligence, but the SC disagreed, asserting that her dealings with the bank through Benaje were within BDO’s specified parameters for transactions via a representative.
The SC ordered BDO, along with BDO People Support Branch Head Christine T. Nakanishi and BDO Rufino Branch Head Vivian Duldulao, to compensate Seastres for over PHP8 million in actual and moral damages, attorney’s fees, and the cost of the lawsuit, with a legal interest of 6% per annum until fully paid.
Benaje was also instructed to indemnify and reimburse BDO, Nakanishi, and Duldulao for the losses and damages incurred due to the incident.
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