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PCIB Vs Balmaceda

PCIB sued Antonio Balmaceda, the branch manager of one of its branches, for fraudulently obtaining manager's checks totaling over P11 million. PCIB also sued Rolando Ramos, who was named as the payee on some of the checks. The trial court found both defendants liable. However, the appellate court dismissed the case against Ramos, finding no evidence he conspired with Balmaceda. The Supreme Court affirmed this decision, finding that PCIB failed to prove by a preponderance of evidence that Ramos participated in Balmaceda's fraudulent scheme.

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Mar Jan Guy
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230 views

PCIB Vs Balmaceda

PCIB sued Antonio Balmaceda, the branch manager of one of its branches, for fraudulently obtaining manager's checks totaling over P11 million. PCIB also sued Rolando Ramos, who was named as the payee on some of the checks. The trial court found both defendants liable. However, the appellate court dismissed the case against Ramos, finding no evidence he conspired with Balmaceda. The Supreme Court affirmed this decision, finding that PCIB failed to prove by a preponderance of evidence that Ramos participated in Balmaceda's fraudulent scheme.

Uploaded by

Mar Jan Guy
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PCIB vs Balmaceda

Banks; degree of diligence required. The General Banking Law of 2000 requires
of banks the highest standards of integrity and performance. The banking
business is impressed with public interest. Of paramount importance is the trust
and confidence of the public in general in the banking industry. Consequently,
the diligence required of banks is more than that of a Roman pater familias or a
good father of a family. The highest degree of diligence is expected.

Preponderance of evidence" is the weight, credit, and value of the aggregate


evidence on either side and is usually considered to be synonymous with the
term "greater weight of the evidence" or "greater weight of the credible evidence."
Preponderance of evidence is a phrase which, in the last analysis, means
probability of the truth. It is evidence which is more convincing to the court as
worthy of belief than that which is offered in opposition thereto.
The party carrying the burden of proof must establish his case by a
preponderance of evidence, or evidence which, to the court, is more worthy of
belief than the evidence offered in opposition.
Facts:
On September 10, 1993, PCIB filed an action for recovery of sum of money with
damages before the RTC against Antonio Balmaceda, the Branch Manager of its
Sta. Cruz, Manila branch. In its complaint, PCIB alleged that between 1991 and
1993, Balmaceda, by taking advantage of his position as branch manager,
fraudulently obtained and encashed 31 Managers checks in the total amount of
Ten Million Seven Hundred Eighty Two Thousand One Hundred Fifty Pesos
(P10,782,150.00).
On February 28, 1994, PCIB moved to be allowed to file an amended complaint
to implead Rolando Ramos as one of the recipients of a portion of the proceeds
from Balmacedas alleged fraud. PCIB also increased the number of fraudulently
obtained and encashed Managers checks to 34, in the total amount of Eleven
Million Nine Hundred Thirty Seven Thousand One Hundred Fifty Pesos
(P11,937,150.00). The RTC granted this motion.
Since Balmaceda did not file an Answer, he was declared in default. On the other
hand, Ramos filed an Answer denying any knowledge of Balmacedas scheme.

According to Ramos, he is a reputable businessman engaged in the business of


buying and selling fighting cocks, and Balmaceda was one of his clients. Ramos
admitted receiving money from Balmaceda as payment for the fighting cocks that
he sold to Balmaceda, but maintained that he had no knowledge of the source of
Balmacedas money.
The RTC issued a decision in favor of PCIB ,
1. Ordering defendant Antonio Balmaceda to pay the amount of P11,042,150.00
with interest thereon at the legal rate from [the] date of his misappropriation of the
said amount until full restitution shall have been made[.]
2. Ordering defendant Rolando Ramos to pay the amount of P895,000.00 with
interest at the legal rate from the date of misappropriation of the said amount until
full restitution shall have been made[.]
3. Ordering the defendants to pay plaintiff moral damages in the sum of
P500,000.00 and attorneys fees in the amount of ten (10%) percent of the total
misappropriated amounts sought to be recovered
4. Plus costs of suit.
On appeal, the CA dismissed the complaint against Ramos, holding that no
sufficient evidence existed to prove that Ramos colluded with Balmaceda in the
latters fraudulent manipulations. And ordered to pay appellant Ramos the
following:
a) P50,000.00 as moral damages
b) P50,000.00 as exemplary damages, and
c) P20,000.00 as attorneys fees
ISSUE:
I THE APPELLATE COURT ERRED IN HOLDING THAT THERE IS NO
EVIDENCE TO HOLD THAT RESPONDENT RAMOS ACTED IN COMPLICITY

WITH RESPONDENT BALMACEDA


II THE APPELLATE COURT ERRED IN ORDERING THE PETITIONER TO
RELEASE THE AMOUNT OFP251,910.96 TO RESPONDENT RAMOS AND TO
PAY THE LATTER MORAL AND EXEMPLARY DAmages and atty fees
HELD
No, Ramos is not liable.
The Supreme Court PARTIALLY GRANTED the petition and AFFIRMED the
decision of the Court of Appeals dated with the MODIFICATION that the award of
moral and exemplary damages in favor of Rolando N. Ramos is DELETED.
PCIB, as plaintiff, had to prove, by preponderance of evidence, its positive
assertion that Ramos conspired with Balmaceda in perpetrating the latters
scheme to defraud the Bank. All that PCIBsevidence proves is that Balmaceda
used Ramos name as a payee when he filled up the application forms for the
Managers checks.
But, as the CA correctly observed, the mere fact that Balmaceda madeRamos
the payee on some of the Managers checks is not enough basis to conclude that
Ramos wascomplicit in Balmacedas fraud; a number of other people were made
payees on the other Managers checks yet PCIB never alleged them to be liable,
nor did the
Bank adduce any other evidence pointing to Ramos participation that would
justify his separate treatment from the others. Also, while Ramos is Balmacedas
brother -in-law, their relationship is not sufficient, by itself, to render Ramos liable,
absentconcrete proof of his actual participation in the fraudulent scheme.
The party carrying the burden of proof must establish his case by a
preponderance of evidence, or evidence which, to the court, is more worthy of
belief than the evidence offered in opposition.
In encinas vs national bookstore . defined "preponderance of evidence" in the
following manner:

Preponderance of evidence" is the weight, credit, and value of the aggregate


evidence on either side and is usually considered to be synonymous with the
term "greater weight of the evidence" or "greater weight of the credible evidence."
Preponderance of evidence is a phrase which, in the last analysis,means
probability of the truth. It is evidence which is more convincing to the court as
worthy of belief than that which is offered in opposition thereto.
Ramos participation in Balmacedas scheme was not proven by PCIB by
preponderance of evidence. Given that PCIB failed to establish Ramos
participation in Balmacedas scheme, it was not even necessary for Ramos to
provide an explanation for the money he received from Balmaceda. Even if the
evidence adduced by the plaintiff appears stronger than that presented by the
defendant, a judgment cannot be entered in the plaintiffs favor if his evidence still
does not suffice to sustain his cause of action; 25 to reiterate, a preponderance of
evidence as defined must be established to achieve this result.

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