Prudential Bank v. Arambulo
This is a civil case between Prudential Bank and the Arambulos. The Supreme Court affirmed the Court of Appeals' decision in favor of the Arambulos, who claimed that the bank unilaterally debited their account without their authorization. The Supreme Court held that the bank cannot take the law into its own hands and withdraw money from a client's account without authority. The bank's alleged right to the money must be judicially ascertained and proven as a demandable debt before legal compensation can occur.
ADVERTISEMENT
SECOND DIVISION
[G.R. No. 244536. June 10, 2019.]
PRUDENTIAL BANK, petitioner, vs.VICTORIA ARAMBULO AND MIGUEL ARAMBULO, JR., respondents.
NOTICE
Sirs/Mesdames :
Please take notice that the Court, Second Division, issued a Resolution dated10 June 2019which reads as follows:
"G.R. No. 244536 (Prudential Bank v. Victoria Arambulo and Miguel Arambulo, Jr.)
After a judicious study of the case, the Court resolves to DENY the instant petition 1 and AFFIRM the March 21, 2018 Decision 2 and the January 23, 2019 Resolution 3 of the Court of Appeals (CA) in CA-G.R. CV No. 100787 for failure of petitioner Prudential Bank (petitioner) to sufficiently show that the CA committed any reversible error in holding that it erred in unilaterally debiting the amount of P720,000.00 from the savings account of respondents Victoria Arambulo and Miguel Arambulo, Jr. (respondents). 4 CAIHTE
As correctly ruled by the CA, petitioner cannot take the law into its own hands and withdraw the money from respondents' savings account without the latter's authority. 5 Under prevailing jurisprudence, legal compensation can only take place when the debts mutually owed by the creditor and debtor to each other are due, liquidated and demandable, 6 which was not shown in this case. The CA correctly observed that petitioner's alleged right to the money must first be judicially ascertained and proven. 7 Until such time, such right remains a mere claim and not a demandable debt which may be a valid basis for legal compensation to occur. HTcADC
SO ORDERED. (GESMUNDO, J., designated Additional Member viceREYES, J., JR., J., per Raffle dated April 8, 2019.)"
Very truly yours,
MARIA LOURDES C. PERFECTODivision Clerk of Court
By:
(SGD.) TERESITA AQUINO TUAZONDeputy Division Clerk of Court
Footnotes
1.Rollo, pp. 10-25.
2.Id. at 27-41. Penned by Associate Justice Maria Elisa Sempio Diy with Associate Justices Jose C. Reyes, Jr. (now a member of this Court) and Franchito N. Diamante, concurring.
3.Id. at 42-45. Penned by Associate Justice Maria Elisa Sempio Diy with Associate Justices Franchito N. Diamante and Gabriel T. Robeniol, concurring.
4. See id. at 38.
5. See id. at 36 and 38.
6. See Silahis Marketing Corporation v. Intermediate Appellate Court, 259 Phil. 489, 493 (1989).
7. See rollo, p. 38.
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