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G.R. No. 90027 1993-03-03 CA Agro Industrial vs CA 219 SCRA 426 CA AGRO-INDUSTRIAL DEVELOPMENT CORP., petitioner, vs. THE HONORABLE COURT O APPEALS !n" SECURIT# BAN$ AND TRUST COMPAN#, respon"ents. G.R. No. 90027 | 1993-03-03 Is t ! "ontra"tual r!lation #!t$!!n a "o%%!r"ial #an& and anot !r 'art( in a "ontra"t o) r!nt o) a sa)!t( d!'osit #o* $it r!s'!"t to its "ont!nts 'la"!d #( t ! latt!r on! o) #ailor and #ail!! or on! o) l!ssor and l!ss!!+ , is is t ! "ru* o) t ! 'r!s!nt "ontrov!rs(. -n 3 .ul( 1979/ '!tition!r 0t roug its 1r!sid!nt/ S!rgio Aguirr!2 and t ! s'ous!s Ra%on and 1aula 1ugao !nt!r!d into an agr!!%!nt $ !r!#( t ! )or%!r 'ur" as!d )ro% t ! latt!r t$o 022 'ar"!ls o) land )or a "onsid!ration o) 1330/623.00. -) t is a%ount/ 173/723.00 $as 'aid as do$n'a(%!nt $ il! t ! #alan"! $as "ov!r!d #( t r!! 032 'ostdat!d " !"&s. A%ong t ! t!r%s and "onditions o) t ! agr!!%!nt !%#odi!d in a 4!%orandu% o) ,ru! and A"tual Agr!!%!nt o) Sal! o) 5and $!r! t at t ! titl!s to t ! lots s all #! trans)!rr!d to t ! '!tition!r u'on )ull 'a(%!nt o) t ! 'ur" as! 'ri"! and t at t ! o$n!r6s "o'i!s o) t ! "!rti)i"at!s o) titl!s t !r!to/ ,rans)!r C!rti)i"at!s o) ,itl! 0,C,2 Nos. 274633 and 292434/ s all #! d!'osit!d in a sa)!t( d!'osit #o* o) an( #an&. , ! sa%! "ould #! $it dra$n onl( u'on t ! 8oint signatur!s o) a r!'r!s!ntativ! o) t ! '!tition!r and t ! 1ugaos u'on )ull 'a(%!nt o) t ! 'ur" as! 'ri"! .1!tition!r/ t roug S!rgio Aguirr!/ and t ! 1ugaos t !n r!nt!d Sa)!t( 9!'osit :o* No. 1447 o) 'rivat! r!s'ond!nt S!"urit( :an& and ,rust Co%'an(/ a do%!sti" #an&ing "or'oration !r!ina)t!r r!)!rr!d to as t ! r!s'ond!nt :an&. ;or t is 'ur'os!/ #ot sign!d a "ontra"t o) l!as! 0<* i#it =2=2 $ i" "ontains/ int!r alia/ t ! )ollo$ing "onditions> =13. , ! #an& is not a d!'ositar( o) t ! "ont!nts o) t ! sa)! and it as n!it !r t ! 'oss!ssion nor "ontrol o) t ! sa%!. 14. , ! #an& as no int!r!st $ atso!v!r in said "ont!nts/ !*"!'t !r!in !*'r!ssl( 'rovid!d/ and it assu%!s a#solut!l( no lia#ilit( in "onn!"tion t !r!$it .= 1 A)t!r t ! !*!"ution o) t ! "ontra"t/ t$o 022 r!nt!r6s &!(s $!r! giv!n to t ! r!nt!rs - on! to Aguirr! 0)or t ! '!tition!r2 and t ! ot !r to t ! 1ugaos. A guard &!( r!%ain!d in t ! 'oss!ssion o) t ! r!s'ond!nt :an&. , ! sa)!t( d!'osit #o* as t$o 022 &!( ol!s/ on! )or t ! guard &!( and t ! ot !r )or t ! r!nt!r6s &!(/ and "an #! o'!n!d onl( $it t ! us! o) #ot &!(s. 1!tition!r "lai%s t at t ! "!rti)i"at!s o) titl! $!r! 'la"!d insid! t ! said #o*. , !r!a)t!r/ a "!rtain 4rs. 4argarita Ra%os o))!r!d to #u( )ro% t ! '!tition!r t ! t$o 022 lots at a 'ri"! o) 1223.00 '!r s?uar! %!t!r $ i" / as '!tition!r all!g!d in its "o%'laint/ translat!s to a 'ro)it o) 1100.00 '!r s?uar! %!t!r or a total o) 1270/300.00 )or t ! !ntir! 'ro'!rt(. 4rs. Ra%os d!%and!d t ! !*!"ution o) a d!!d o) sal! $ i" n!"!ssaril( !ntail!d t ! 'rodu"tion o) t ! "!rti)i"at!s o) titl!. In vi!$ t !r!o)/ Aguirr!/ a""o%'ani!d #( t ! 1ugaos/ t !n 'ro"!!d!d to t ! r!s'ond!nt :an& on 4 -"to#!r 1979 to o'!n t ! sa)!t( d!'osit #o* and g!t t ! "!rti)i"at!s o) titl!. @o$!v!r/ $ !n o'!n!d in t ! 'r!s!n"! o) t ! :an&6s r!'r!s!ntativ!/ t ! #o* (i!ld!d no su" "!rti)i"at!s. :!"aus! o) t ! d!la( in t ! r!"onstitution o) t ! titl!/ 4rs. Ra%os $it dr!$ !r !arli!r o))!r to 'ur" as! t ! lotsA as a "ons!?u!n"! t !r!o)/ t ! '!tition!r all!g!dl( )ail!d to r!aliB! t ! !*'!"t!d 'ro)it o) 1270/300.00. @!n"!/ t ! latt!r )il!d on 1 S!'t!%#!r 1970 a "o%'laint 2 )or da%ag!s against t ! r!s'ond!nt :an& $it t ! Court o) ;irst Instan"! 0no$ R!gional ,rial Court2 o) 1asig/

4!tro 4anila $ i" do"&!t!d t ! sa%! as Civil Cas! No. 37372. In its Ans$!r $it Count!r"lai%/ 3 r!s'ond!nt :an& all!g!d t at t ! '!tition!r as no "aus! o) a"tion #!"aus! o) 'aragra' s 13 and 14 o) t ! "ontra"t o) l!as! 0<* i#it =2=2A "orollaril(/ loss o) an( o) t ! it!%s or arti"l!s "ontain!d in t ! #o* "ould not giv! ris! to an a"tion against it. It t !n int!r'os!d a "ount!r"lai% )or !*!%'lar( da%ag!s as $!ll as attorn!(6s )!!s in t ! a%ount o) 120/000.00. 1!tition!r su#s!?u!ntl( )il!d an ans$!r to t ! "ount!r"lai%. 4 In du! "ours!/ t ! trial "ourt. no$ d!signat!d as :ran" 161 o) t ! R!gional ,rial Court 0R,C2 o) 1asig/ 4!tro 4anila/ r!nd!r!d a d!"ision 3 adv!rs! to t ! '!tition!r on 7 9!"!%#!r 1976/ t ! dis'ositiv! 'ortion o) $ i" r!ads> =C@<R<;-R</ 'r!%is!s "onsid!r!d/ 8udg%!nt is !r!#( r!nd!r!d dis%issing 'lainti))6s "o%'laint. -n d!)!ndant6s "ount!r"lai%/ 8udg%!nt is !r!#( r!nd!r!d ord!ring 'lainti)) to 'a( d!)!ndant t ! a%ount o) ;ID< ,@-ESAN9 013/000.002 1<S-S as attorn!(6s )!!s. Cit "osts against 'lainti)).= 6 , ! un)avora#l! v!rdi"t is #as!d on t ! trial "ourt6s "on"lusion t at und!r 'aragra' s 13 and 14 o) t ! "ontra"t o) l!as!/ t ! :an& as no lia#ilit( )or t ! loss o) t ! "!rti)i"at!s o) titl!. , ! "ourt d!"lar!d t at t ! said 'rovisions ar! #inding on t ! 'arti!s. Its %otion )or r!"onsid!ration 7 aving #!!n d!ni!d/ '!tition!r a''!al!d )ro% t ! adv!rs! d!"ision to t ! r!s'ond!nt Court o) A''!als $ i"

do"&!t!d t ! a''!al as CA-G.R. CD No. 13130. 1!tition!r urg!d t ! r!s'ond!nt Court to r!v!rs! t ! " all!ng!d d!"ision #!"aus! t ! trial "ourt !rr!d in 0a2 a#solving t ! r!s'ond!nt :an& )ro% lia#ilit( )ro% t ! loss/ 0#2 not d!"laring as null and void/ )or #!ing "ontrar( to la$/ 'u#li" ord!r and 'u#li" 'oli"(/ t ! 'rovisions in t ! "ontra"t )or l!as! o) t ! sa)!t( d!'osit #o* a#solving t ! :an& )ro% an( lia#ilit( )or loss/ 0"2 not "on"luding t at in t is 8urisdi"tion/ as $!ll as und!r A%!ri"an 8uris'rud!n"!/ t ! lia#ilit( o) t ! :an& is s!ttl!d and 0d2 a$arding attorn!(6s )!!s to t ! :an& and d!n(ing t ! '!tition!r6s 'ra(!r )or no%inal and !*!%'lar( da%ag!s and attorn!(6s )!!s. 7 In its 9!"ision 'ro%ulgat!d on 4 .ul( 1979/ 9 r!s'ond!nt Court a))ir%!d t ! a''!al!d d!"ision 'rin"i'all( on t ! t !or( t at t ! "ontra"t 0<* i#it =2=2 !*!"ut!d #( t ! '!tition!r and r!s'ond!nt :an& is in t ! natur! o) a "ontra"t o) l!as! #( virtu! o) $ i" t ! '!tition!r and its "o-r!nt!r $!r! giv!n "ontrol ov!r t ! sa)!t( d!'osit #o* and its "ont!nts $ il! t ! :an& r!tain!d no rig t to o'!n t ! said #o* #!"aus! it ad n!it !r t ! 'oss!ssion nor "ontrol ov!r it and its "ont!nts. As su" / t ! "ontra"t is gov!rn!d #( Arti"l! 1643 o) t ! Civil Cod! 10 $ i" 'rovid!s> =AR,. 1643. In t ! l!as! o) t ings/ on! o) t ! 'arti!s #inds i%s!l) to giv! to anot !r t ! !n8o(%!nt or us! o) a t ing )or a 'ri"! "!rtain/ and )or a '!riod $ i" %a( #! d!)init! or ind!)init!. @o$!v!r/ no l!as! )or %or! t an nin!t(-nin! (!ars s all #! valid.= It invo&!d ,ol!ntino vs. GonBal!s 11 - $ i" !ld t at t ! o$n!r o) t ! 'ro'!rt( los!s is "ontrol ov!r t ! 'ro'!rt( l!as!d during t ! '!riod o) t ! "ontra"t - and Arti"l! 1973 o) t ! Civil Cod! $ i" 'rovid!s> =AR,. 1973. , ! d!'ositar( olding "!rti)i"at!s/ #onds/ s!"uriti!s or instru%!nts $ i" !arn int!r!st s all #! #ound to "oll!"t t ! latt!r $ !n it

#!"o%!s du!/ and to ta&! su" st!'s as %a( #! n!"!ssar( in ord!r t at t ! s!"uriti!s %a( 'r!s!rv! t !ir valu! and t ! rig ts "orr!s'onding to t !% a""ording to la$. , ! a#ov! 'rovision s all not a''l( to "ontra"ts )or t ! r!nt o) sa)!t( d!'osit #o*!s.= and t !n "on"lud!d t at =F"Gl!arl(/ t ! d!)!ndant-a''!ll!! is not und!r an( dut( to %aintain t ! "ont!nts o) t ! #o*. , ! sti'ulation a#solving t ! d!)!ndant-a''!ll!! )ro% lia#ilit( is in a""ordan"! $it t ! natur! o) t ! "ontra"t o) l!as! and "annot #! r!gard!d as "ontrar( to la$/ 'u#li" ord!r and 'u#li" 'oli"(.= 12 , ! a''!llat! "ourt $as ?ui"& to add/ o$!v!r/ t at und!r t ! "ontra"t o) l!as! o) t ! sa)!t( d!'osit #o*/ r!s'ond!nt :an& is not "o%'l!t!l( )r!! )ro% lia#ilit( as it %a( still #! %ad! ans$!ra#l! in "as! unaut oriB!d '!rsons !nt!r into t ! vault ar!a or $ !n t ! r!nt!d #o* is )or"!d o'!n. , us/ as !*'r!ssl( 'rovid!d )or in sti'ulation nu%#!r 7 o) t ! "ontra"t in ?u!stion> =7. , ! :an& s all us! du! dilig!n"! t at no unaut oriB!d '!rson s all #! ad%itt!d to an( r!nt!d sa)! and #!(ond t is/ t ! :an& $ill not #! r!s'onsi#l! )or t ! "ont!nts o) an( sa)! r!nt!d )ro% it.= 13 Its %otion )or r!"onsid!ration 14 aving #!!n d!ni!d in t ! r!s'ond!nt Court6s R!solution o) 27 August 1979/ 13 '!tition!r too& t is r!"ours! und!r Rul! 43 o) t ! Rul!s o) Court and urg!s Es to r!vi!$ and s!t asid! t ! r!s'ond!nt Court6s ruling. 1!tition!r av!rs t at #ot t ! r!s'ond!nt Court and t ! trial "ourt 0a2 did not 'ro'!rl( and l!gall( a''l( t ! "orr!"t la$ in t is "as!/ 0#2 a"t!d $it grav! a#us! o) dis"r!tion or in !*"!ss o) 8urisdi"tion a%ounting to la"& t !r!o) and 0"2 s!t a 'r!"!d!nt t at is "ontrar( to/ or is a d!'artur! )ro% 'r!"!d!nts ad !r!d to and a))ir%!d #( d!"isions o) t is Court and 'r!"!'ts in A%!ri"an 8uris'rud!n"! ado't!d

in t ! 1 ili''in!s. It r!it!rat!s t ! argu%!nts it ad rais!d in its %otion to r!"onsid!r t ! trial "ourt6s d!"ision/ t ! #ri!) su#%itt!d to t ! r!s'ond!nt Court and t ! %otion to r!"onsid!r t ! latt!r6s d!"ision. In a nuts !ll/ '!tition!r %aintains t at r!gardl!ss o) no%!n"latur!/ t ! "ontra"t )or t ! r!nt o) t ! sa)!t( d!'osit #o* 0<* i#it =2=2 is a"tuall( a "ontra"t o) d!'osit gov!rn!d #( ,itl! HII/ :oo& ID o) t ! Civil Cod! o) t ! 1 ili''in!s. 16 A""ordingl(/ it is "lai%!d t at t ! r!s'ond!nt :an& is lia#l! )or t ! loss o) t ! "!rti)i"at!s o) titl! 'ursuant to Arti"l! 1972 o) t ! said Cod! $ i" 'rovid!s> =AR,. 1972. , ! d!'ositar( is o#lig!d to &!!' t ! t ing sa)!l( and to r!turn it/ $ !n r!?uir!d/ to t ! d!'ositor/ or to is !irs and su""!ssors/ or to t ! '!rson $ o %a( av! #!!n d!signat!d in t ! "ontra"t. @is r!s'onsi#ilit(/ $it r!gard to t ! sa)!&!!'ing and t ! loss o) t ! t ing/ s all #! gov!rn!d #( t ! 'rovisions o) ,itl! I o) t is :oo&. I) t ! d!'osit is gratuitous/ t is )a"t s all #! ta&!n into a""ount in d!t!r%ining t ! d!gr!! o) "ar! t at t ! d!'ositar( %ust o#s!rv!.= 1!tition!r t !n ?uot!s a 'assag! )ro% A%!ri"an .uris'rud!n"! 17 $ i" is su''os!d to !*'ound on t ! 'r!vailing rul! in t ! Enit!d Stat!s/ to $it>

=, ! 'r!vailing rul! a''!ars to #! t at $ !r! a sa)!-d!'osit "o%'an( l!as!s a sa)!-d!'osit #o* or sa)! and t ! l!ss!! ta&!s 'oss!ssion o) t ! #o* or sa)! and 'la"!s t !r!in is s!"uriti!s or ot !r valua#l!s/ t ! r!lation o) #ail!! and #ailor is "r!at!d #!t$!!n t ! 'arti!s to t ! transa"tion as to su" s!"uriti!s or ot !r valua#l!sA t ! )a"t t at t ! sa)!d!'osit "o%'an( do!s not &no$/ and t at it is not !*'!"t!d t at it s all &no$/ t ! " ara"t!r or d!s"ri'tion o) t ! 'ro'!rt( $ i" is d!'osit!d in su" sa)!-d!'osit #o* or sa)! do!s not " ang! t at r!lation. , at a""!ss to

t ! "ont!nts o) t ! sa)!-d!'osit #o* "an #! ad onl( #( t ! us! o) a &!( r!tain!d #( t ! l!ss!! 0$ !t !r it is t ! sol! &!( or on! to #! us!d in "onn!"tion $it on! r!tain!d #( t ! l!ssor2 do!s not o'!rat! to alt!r t ! )or!going rul!. , ! argu%!nt t at t !r! is not/ in su" a "as!/ a d!liv!r( o) !*"lusiv! 'oss!ssion and "ontrol to t ! d!'osit "o%'an(/ and t at t !r!)or! t ! situation is !ntir!l( di))!r!nt )ro% t at o) ordinar( #ail%!nt/ as #!!n g!n!rall( r!8!"t!d #( t ! "ourts/ usuall( on t ! ground t at as 'oss!ssion %ust #! !it !r in t ! d!'ositor or in t ! "o%'an(/ it s ould r!asona#l( #! "onsid!r!d as in t ! latt!r rat !r t an in t ! )or%!r/ sin"! t ! "o%'an( is/ #( t ! natur! o) t ! "ontra"t/ giv!n a#solut! "ontrol o) a""!ss to t ! 'ro'!rt(/ and t ! d!'ositor "annot gain a""!ss t !r!to $it out t ! "ons!nt and a"tiv! 'arti"i'ation o) t ! "o%'an(. . . .= 0"itations o%itt!d2. and a s!g%!nt )ro% Cords and 1 ras!s 17 $ i" stat!s t at a "ontra"t )or t ! r!ntal o) a #an& sa)!t( d!'osit #o* in "onsid!ration o) a )i*!d a%ount at stat!d '!riods is a #ail%!nt )or ir!. 1!tition!r )urt !r argu!s t at "onditions 13 and 14 o) t ! ?u!stion!d "ontra"t ar! "ontrar( to la$ and 'u#li" 'oli"( and s ould #! d!"lar!d null and void. In su''ort t !r!o)/ it "it!s Arti"l! 1306 o) t ! Civil Cod! $ i" 'rovid!s t at 'arti!s to a "ontra"t %a( !sta#lis su" sti'ulations/ "laus!s/ t!r%s and "onditions as t !( %a( d!!% "onv!ni!nt/ 'rovid!d t !( ar! not "ontrar( to la$/ %orals/ good "usto%s/ 'u#li" ord!r or 'u#li" 'oli"(. A)t!r t ! r!s'ond!nt :an& )il!d its "o%%!nt/ t is Court gav! du! "ours! to t ! '!tition and r!?uir!d t ! 'arti!s to si%ultan!ousl( su#%it t !ir r!s'!"tiv! 4!%oranda. , ! '!tition is 'artl( %!ritorious.

C! agr!! $it t ! '!tition!r6s "ont!ntion t at t ! "ontra"t )or t ! r!nt o) t ! sa)!t( d!'osit #o* is not an ordinar( "ontra"t o) l!as! as d!)in!d in Arti"l! 1643 o) t ! Civil Cod!. @o$!v!r/ C! do not )ull( su#s"ri#! to its vi!$ t at t ! sa%! is a "ontra"t o) d!'osit t at is to #! stri"tl( gov!rn!d #( t ! 'rovisions in t ! Civil Cod! on d!'ositA 19 t ! "ontra"t in t ! "as! at #ar is a s'!"ial &ind o) d!'osit. It "annot #! " ara"t!riB!d as an ordinar( "ontra"t o) l!as! und!r Arti"l! 1643 #!"aus! t ! )ull and a#solut! 'oss!ssion and "ontrol o) t ! sa)!t( d!'osit #o* $as not giv!n to t ! r!nt!rs - t ! '!tition!r and t ! 1ugaos. , ! guard &!( o) t ! #o* r!%ain!d $it t ! r!s'ond!nt :an&A $it out t is &!(/ n!it !r o) t ! r!nt!rs "ould o'!n t ! #o*. -n t ! ot !r and/ t ! r!s'ond!nt :an& "ould not li&!$is! o'!n t ! #o* $it out t ! r!nt!r6s &!(. In t is "as!/ t ! said &!( ad a du'li"at! $ i" $as %ad! so t at #ot r!nt!rs "ould av! a""!ss to t ! #o*. @!n"!/ t ! aut oriti!s "it!d #( t ! r!s'ond!nt Court 20 on t is 'oint do not a''l(. N!it !r "ould Arti"l! 1973/ also r!li!d u'on #( t ! r!s'ond!nt Court/ #! invo&!d as an argu%!nt against t ! d!'osit t !or(. -#viousl(/ t ! )irst 'aragra' o) su" 'rovision "annot a''l( to a d!'ositar( o) "!rti)i"at!s/ #onds/ s!"uriti!s or instru%!nts $ i" !arn int!r!st i) su" do"u%!nts ar! &!'t in a r!nt!d sa)!t( d!'osit #o*. It is "l!ar t at t ! d!'ositar( "annot o'!n t ! #o* $it out t ! r!nt!r #!ing 'r!s!nt. C! o#s!rv!/ o$!v!r/ t at t ! d!'osit t !or( its!l) do!s not altog!t !r )ind unani%ous su''ort !v!n in A%!ri"an 8uris'rud!n"!. C! agr!! $it t ! '!tition!r t at und!r t ! latt!r/ t ! 'r!vailing rul! is t at t ! r!lation #!t$!!n a #an& r!nting out sa)!-d!'osit #o*!s and its "usto%!r $it r!s'!"t to t ! "ont!nts o) t ! #o* is t at o) a #ailor and #ail!!/ t ! #ail%!nt #!ing )or ir! and %utual #!n!)it. 21 , is is 8ust t ! 'r!vailing vi!$ #!"aus!>

=, !r! is/ o$!v!r/ so%! su''ort )or t ! vi!$ t at t ! r!lations i' in ?u!stion %ig t #! %or! 'ro'!rl( " ara"t!riB!d as t at o) landlord and t!nant/ or l!ssor and l!ss!!. It as also #!!n sugg!st t at s ould #! " ara"t!riB!d as t at o) li"!nsor and li"!ns!!. , ! r!lation #!t$!!n a #an&/ sa)!-d!'osit "o%'an(/ or storag! "o%'an(/ and t ! r!nt!r o) a sa)!d!'osit #o* t !r!in/ is o)t!n d!s"ri#!d as "ontra"tual/ !*'r!ss or i%'li!d/ oral or $ritt!n/ in $ ol! or in 'art. :ut t !r! is a''ar!ntl( no 8urisdi"tion in $ i" an( rul! ot !r t an t at a''li"a#l! to #ail%!nts gov!rns ?u!stions o) t ! lia#ilit( and rig ts o) t ! 'arti!s in r!s'!"t o) loss o) t ! "ont!nts o) sa)!-d!'osit #o*!s.= 22 0"itations o%itt!d2. In t ! "ont!*t o) our la$s $ i" aut oriB! #an&ing institutions to r!nt out sa)!t( d!'osit #o*!s/ it is "l!ar t at in t is 8urisdi"tion/ t ! 'r!vailing rul! in t ! Enit!d Stat!s as #!!n ado't!d. S!"tion 72 o) t ! G!n!ral :an&ing A"t 23 '!rtin!ntl( 'rovid!s> =S<C. 72. In addition to t ! o'!rations s'!"i)i"all( aut oriB!d !ls!$ !r! in t is A"t/ #an&ing institutions ot !r t an #uilding and loan asso"iations %a( '!r)or% t ! )ollo$ing s!rvi"!s> 0a2 R!"!iv! in "ustod( )unds/ do"u%!nts/ and valua#l! o#8!"ts/ and r!nt sa)!t( d!'osit #o*!s )or t ! sa)!guarding o) su" !))!"ts. *** *** *** , ! #an&s s all '!r)or% t ! s!rvi"!s '!r%itt!d und!r su#s!"tions 0a2/ 0#2 and 0"2 o) t is s!"tion as d!'ositori!s or as ag!nts. . . . = 24 0!%' asis su''li!d2. Not! t at t ! 'ri%ar( )un"tion is still )ound $it in t ! 'ara%!t!rs o) a "ontra"t o) d!'osit/ i.!./ t ! r!"!iving in "ustod( o) )unds/ do"u%!nts and

ot !r valua#l! o#8!"ts )or sa)!&!!'ing. , ! r!nting out o) t ! sa)!t( d!'osit #o*!s is not ind!'!nd!nt )ro%/ #ut r!lat!d to or in "on8un"tion $it / t is 'rin"i'al )un"tion. A "ontra"t o) d!'osit %a( #! !nt!r!d into orall( or in $riting 23 and/ 'ursuant to Arti"l! 1306 o) t ! Civil Cod!/ t ! 'arti!s t !r!to %a( !sta#lis su" sti'ulations/ "laus!s/ t!r%s and "onditions as t !( %a( d!!% "onv!ni!nt/ 'rovid!d t !( ar! not "ontrar( to la$/ %orals/ good "usto%s/ 'u#li" ord!r or 'u#li" 'oli"(. , ! d!'ositar(6s r!s'onsi#ilit( )or t ! sa)!&!!'ing o) t ! o#8!"ts d!'osit!d in t ! "as! at #ar is gov!rn!d #( ,itl! I/ :oo& ID o) t ! Civil Cod!. A""ordingl(/ t ! d!'ositar( $ould #! lia#l! i)/ in '!r)or%ing its o#ligation/ it is )ound guilt( o) )raud/ n!glig!n"!/ d!la( or "ontrav!ntion o) t ! t!nor o) t ! agr!!%!nt. 26 In t ! a#s!n"! o) an( sti'ulation 'r!s"ri#ing t ! d!gr!! o) dilig!n"! r!?uir!d/ t at o) a good )at !r o) a )a%il( is to #! o#s!rv!d. 27 @!n"!/ an( sti'ulation !*!%'ting t ! d!'ositar( )ro% an( lia#ilit( arising )ro% t ! loss o) t ! t ing d!'osit!d on a""ount o) )raud/ n!glig!n"! or d!la( $ould #! void )or #!ing "ontrar( to la$ and 'u#li" 'oli"(. In t ! instant "as!/ '!tition!r %aintains t at "onditions 13 and 14 o) t ! ?u!stion!d "ontra"t o) l!as! o) t ! sa)!t( d!'osit #o*/ $ i" r!ad> =13. , ! #an& is not a d!'ositar( o) t ! "ont!nts o) t ! sa)! and it as n!it !r t ! 'oss!ssion nor "ontrol o) t ! sa%!. 14. , ! #an& as no int!r!st $ atso!v!r in said "ont!nts/ !*"!'t !r!in !*'r!ssl( 'rovid!d/ and it assu%!s a#solut!l( no lia#ilit( in "onn!"tion t !r!$it .= 27 ar! void as t !( ar! "ontrar( to la$ and 'u#li" 'oli"(. C! )ind -urs!lv!s in agr!!%!nt $it t is 'ro'osition )or ind!!d/ said 'rovisions ar! in"onsist!nt $it t ! r!s'ond!nt :an&6s r!s'onsi#ilit( as a d!'ositar( und!r S!"tion 720a2 o) t ! G!n!ral :an&ing A"t. :ot !*!%'t t ! latt!r

)ro% an( lia#ilit( !*"!'t as "ont!%'lat!d in "ondition 7 t !r!o) $ i" li%its its dut( to !*!r"is! r!asona#l! dilig!n"! onl( $it r!s'!"t to $ o s all #! ad%itt!d to an( r!nt!d sa)!/ to $it> =7. , ! :an& s all us! du! dilig!n"! t at no unaut oriB!d '!rson s all #! ad%itt!d to an( r!nt!d sa)! and #!(ond t is/ t ! :an& $ill not #! r!s'onsi#l! )or t ! "ont!nts o) an( sa)! r!nt!d )ro% it.= 29 ;urt !r%or!/ "ondition 13 stands on a $rong 'r!%is! and is "ontrar( to t ! a"tual 'ra"ti"! o) t ! :an&. It is not "orr!"t to ass!rt t at t ! :an& as n!it !r t ! 'oss!ssion nor "ontrol o) t ! "ont!nts o) t ! #o* sin"! in )a"t/ t ! sa)!t( d!'osit #o* its!l) is lo"at!d in its 'r!%is!s and is und!r its a#solut! "ontrolA %or!ov!r/ t ! r!s'ond!nt :an& &!!'s t ! guard &!( to t ! said #o*. As stat!d !arli!r/ r!nt!rs "annot o'!n t !ir r!s'!"tiv! #o*!s unl!ss t ! :an& "oo'!rat!s #( 'r!s!nting and using t is guard &!(. Cl!arl( t !n/ to t ! !*t!nt a#ov! stat!d/ t ! )or!going "onditions in t ! "ontra"t in ?u!stion ar! void and in!))!"tiv!. It as #!!n said> =Cit r!s'!"t to 'ro'!rt( d!'osit!d in a sa)!-d!'osit #o* #( a "usto%!r o) a sa)!-d!'osit "o%'an(/ t ! 'arti!s/ sin"! t ! r!lation is a "ontra"tual on! %a( #( s'!"ial "ontra"t d!)in! t !ir r!s'!"tiv! duti!s or 'rovid! )or in"r!asing or li%iting t ! lia#ilit( o) t ! d!'osit "o%'an(/ 'rovid!d su" "ontra"t is not in violation o) la$ or 'u#li" 'oli"(. It %ust "l!arl( a''!ar t at t !r! a"tuall( $as su" a s'!"ial "ontra"t/ o$!v!r/ in ord!r to var( t ! ordinar( o#ligations i%'li!d #( la$ )ro% t ! r!lations i' o) t ! 'arti!sA lia#ilit( o) t ! d!'osit "o%'an( $ill not #! !nlarg!d or r!stri"t!d #( $ords o) dou#t)ul %!aning. , ! "o%'an(/ in r!nting sa)!-d!'osit #o*!s/ "annot !*!%'t its!l) )ro% lia#ilit( )or loss o) t ! "ont!nts #( its o$n )raud or n!glig!n"! or t at o) its ag!nts or s!rvants/ and i) a 'rovision o) t ! "ontra"t %a( #! "onstru!d as an att!%'t to do so/ it $ill #! !ld in!))!"tiv! )or t ! 'ur'os!. Alt oug it as #!!n !ld t at t !

l!ssor o) a sa)!-d!'osit #o* "annot li%it its lia#ilit( )or loss o) t ! "ont!nts t !r!o) t roug its o$n n!glig!n"!/ t ! vi!$ as #!!n ta&!n t at su" a l!ssor %a( li%it its lia#ilit( to so%! !*t!nt #( agr!!%!nt or sti'ulation.= 30 0"itations o%itt!d2. , us/ $! r!a" t ! sa%! "on"lusion $ i" t ! Court o) A''!als arriv!d at/ t at is/ t at t ! '!tition s ould #! dis%iss!d/ #ut on grounds ?uit! di))!r!nt )ro% t os! r!li!d u'on #( t ! Court o) A''!als. In t ! instant "as!/ t ! r!s'ond!nt :an&6s !*on!ration "annot/ "ontrar( to t ! olding o) t ! Court o) A''!als/ #! #as!d on or 'ro"!!d )ro% a " ara"t!riBation o) t ! i%'ugn!d "ontra"t as a "ontra"t o) l!as!/ #ut rat !r on t ! )a"t t at no "o%'!t!nt 'roo) $as 'r!s!nt!d to s o$ t at r!s'ond!nt :an& $as a$ar! o) t ! agr!!%!nt #!t$!!n t ! '!tition!r and t ! 1ugaos to t ! !))!"t t at t ! "!rti)i"at!s o) titl! $!r! $it dra$a#l! )ro% t ! sa)!t( d!'osit #o* onl( u'on #ot 'arti!s6 8oint signatur!s/ and t at no !vid!n"! $as su#%itt!d to r!v!al t at t ! loss o) t ! "!rti)i"at!s o) titl! $as du! to t ! )raud or n!glig!n"! o) t ! r!s'ond!nt :an&. , is in turn )lo$s )ro% t is Court6s d!t!r%ination t at t ! "ontra"t involv!d $as on! o) d!'osit. Sin"! #ot t ! '!tition!r and t ! 1ugaos agr!!d t at !a" s ould av! on! 012 r!nt!r6s &!(/ it $as o#vious t at !it !r o) t !% "ould as& t ! :an& )or a""!ss to t ! sa)!t( d!'osit #o* and/ $it t ! us! o) su" &!( and t ! :an&6s o$n guard &!(/ "ould o'!n t ! said #o*/ $it out t ! ot !r r!nt!r #!ing 'r!s!nt. Sin"!/ o$!v!r/ t ! '!tition!r "annot #! #la%!d )or t ! )iling o) t ! "o%'laint and no #ad )ait on its 'art ad #!!n !sta#lis !d/ t ! trial "ourt !rr!d in "ond!%ning t ! '!tition!r to 'a( t ! r!s'ond!nt :an& attorn!(6s )!!s. ,o t is !*t!nt/ t ! 9!"ision 0dis'ositiv! 'ortion2 o) 'u#li" r!s'ond!nt Court o) A''!als %ust #! %odi)i!d. C@<R<;-R</ t ! 1!tition )or R!vi!$ is 'artiall( GRAN,<9 #(

d!l!ting t ! a$ard )or attorn!(6s )!!s )ro% t ! 4 .ul( 1979 9!"ision o) t ! r!s'ond!nt Court o) A''!als in CA-G.R. CD No. 13130. As %odi)i!d/ and su#8!"t to t ! 'ronoun"!%!nt C! %ad! a#ov! on t ! natur! o) t ! r!lations i' #!t$!!n t ! 'arti!s in a "ontra"t o) l!as! o) sa)!t( d!'osit #o*!s/ t ! dis'ositiv! 'ortion o) t ! said 9!"ision is !r!#( A;;IR4<9 and t ! instant 1!tition )or R!vi!$ is ot !r$is! 9<NI<9 )or la"& o) %!rit. No 'ronoun"!%!nt as to "osts.