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Advocates Philippines
SC Holds BDO Liable For Unauthorized Withdrawals
Photo credit: SC
The Supreme Court of the Philippines has ruled that Banco de Oro Universal Bank, Inc. (BDO) is liable for damages exceeding PhP8 million due to unauthorized withdrawals from a depositor's account.
The verdict was delivered in G.R. No. 257151 (Banco De Oro Universal Bank, Inc. v. Liza A. Seastres) by the Court's Third Division, with Associate Justice Alfredo Benjamin S. Caguioa presiding.
Liza A. Seastres, a depositor with BDO, had filed the lawsuit against the bank after unauthorized transactions totaling PhP8,121,939.59 were made from her account by the Chief Operating Officer of her business.
The Court found that BDO failed to meet its obligation to exercise extraordinary diligence in safeguarding Seastres' bank accounts.
In its ruling, the Court emphasized that banks, particularly those like BDO that are involved in activities with a significant impact on the public, are obligated to uphold the highest degree of diligence when managing customer accounts.
The SC said this duty extends to verifying the authenticity of signatures on withdrawal slips and manager's checks to ensure they are made by the account holder and not by any unauthorized individuals.
The verdict was delivered in G.R. No. 257151 (Banco De Oro Universal Bank, Inc. v. Liza A. Seastres) by the Court's Third Division, with Associate Justice Alfredo Benjamin S. Caguioa presiding.
Liza A. Seastres, a depositor with BDO, had filed the lawsuit against the bank after unauthorized transactions totaling PhP8,121,939.59 were made from her account by the Chief Operating Officer of her business.
The Court found that BDO failed to meet its obligation to exercise extraordinary diligence in safeguarding Seastres' bank accounts.
In its ruling, the Court emphasized that banks, particularly those like BDO that are involved in activities with a significant impact on the public, are obligated to uphold the highest degree of diligence when managing customer accounts.
The SC said this duty extends to verifying the authenticity of signatures on withdrawal slips and manager's checks to ensure they are made by the account holder and not by any unauthorized individuals.
Oct 10, 2023
