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ROBERT DINO

Petitioner,

- versus -

MARIA LUISA JUDAL-LOOT, joined by er usb!nd

"I#ENTE LOOT, Pro$u%&!ted'

Res(ondents) *)R) No) + .+/ A(ri% +., / +

0-----------------------------------------------------------------------------------------0

#ARPIO, J)'

T e #!se

T is is ! (etition 1or revie23+4 o1 t e +5 Au&ust / 6 De7ision3/4 !nd 8 Nove$ber / 6Reso%ution384 o1 t e #ourt o1 A((e!%s in #A-*)R) #" No) 6 ..9) T e #ourt o1 A((e!%s!11ir$ed t e de7ision o1 t e Re&ion!% Tri!% #ourt, t Judi7i!% Re&ion, Br!n7 65, M!nd!ue #ity:tri!% 7ourt;, 2it t e de%etion o1 t e !2!rd o1 interest, $or!% d!$!&es, !ttorney

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U(on s7rutini@in& t e do7u$ents invo%vin& t e (ro(erties, (etitioner dis7overed t !t t edo7u$ents 7overed ri& ts over &overn$ent (ro(erties) Re!%i@in& e !d been de7eived,

(etitioner !dvised Metrob!n= to sto( (!y$ent o1 is 7 e7=s) o2ever, on%y t e (!y$ent o1# e7= No) #-MA- +9/++.9 5-#A 2!s ordered sto((ed) T e ot er t2o 7 e7=s 2ere !%re!dyen7!s ed by t e (!yees)

Me!n2 i%e, Lobit!n! ne&oti!ted !nd indorsed # e7= No) #-MA- +9/++.9 5-#A tores(ondents in e07 !n&e 1or 7!s in t e su$ o1 P.9 , ) , 2 i7 res(ondents borro2ed 1ro$Metrob!n= !nd 7 !r&ed !&!inst t eir 7redit %ine) Be1ore res(ondents !77e(ted t e 7 e7=, t ey1irst inCuired 1ro$ t e dr!2ee b!n=, Metrob!n=, #ebu-M!bo%o Br!n7 2 i7 is !%so t eirde(osit!ry b!n=, i1 t e subje7t 7 e7= 2!s su11i7ient%y 1unded, to 2 i7 Metrob!n= !ns2ered int e (ositive) o2ever, 2 en res(ondents de(osited t e 7 e7= 2it Metrob!n=, #ebu-M!bo%oBr!n7 , t e s!$e 2!s dis onored by t e dr!2ee b!n= 1or re!son PA MENT STOPPED)F

Res(ondents 1i%ed ! 7o%%e7tion suit354 !&!inst (etitioner !nd Lobit!n! be1ore t e tri!% 7ourt)In t eir #o$(%!int, res(ondents !%%e&ed, !$on& ot er t in&s, t !t t ey !re o%ders in due 7ourse

!nd 1or v!%ue o1 Metrob!n= # e7= No) #-MA-+9/++.9 5-#A !nd t !t t ey !d no (riorin1or$!tion 7on7ernin& t e tr!ns!7tion bet2een de1end!nts)

In is Ans2er, (etitioner denied res(ondents< !%%e&!tions t !t on t e 1!7e o1 t e subje7t7 e7=, no 7ondition or %i$it!tion 2!s i$(osedF !nd t !t res(ondents !re o%ders in due 7ourse!nd 1or v!%ue o1 t e 7 e7=) >or er (!rt, Lobit!n! denied t e !%%e&!tions in t e 7o$(%!int !nd

b!si7!%%y 7%!i$ed t !t t e tr!ns!7tion %e!din& to t e issu!n7e o1 t e subje7t 7 e7= is ! s!%e o1 ! (!r7e% o1 %!nd by "iven7i! O$(o= #onsin& to (etitioner !nd t !t s e 2!s $!de ! (!yee o1 t e7 e7= on%y to 1!7i%it!te its dis7ountin&)

T e tri!% 7ourt ru%ed in 1!vor o1 res(ondents !nd de7%!red t e$ due 7ourse o%ders o1 t esubje7t 7 e7=, sin7e t ere 2!s no (rivity bet2een res(ondents !nd de1end!nts) T e dis(ositive

(ortion o1 t e +9 M!r7 +..5 De7ision o1 t e tri!% 7ourt re!ds'

In su$$!tion, t is #ourt ru%es 1or t e P%!inti11 !nd !&!inst t e De1end!nts !nd erebyorders'

+); de1end!nts to (!y to P%!inti11, !nd sever!%%y, t e !$ount o1 P+, , ) re(resentin&t e 1!7e v!%ue o1 subje7t Metrob!n= 7 e7=G

/); to (!y to P%!inti11 erein, joint%y !nd sever!%%y, t e su$ o1 P+ +, 9 ) 1or !77rued!nd (!id interestG

8); to (!y to P%!inti11, joint%y !nd sever!%%y, $or!% d!$!&es in t e !$ount o1 P+ , ) G

9); to (!y to P%!inti11, joint%y !nd sever!%%y, t e su$ o1 P/ , ) 1or !ttorney

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6); to (!y to P%!inti11, joint%y !nd sever!%%y, %iti&!tion e0(enses in t e su$ o1 P+ , )!nd 7osts o1 t e suit)

SO ORDERED)3 4

On%y (etitioner 1i%ed !n !((e!%) Lobit!n! did not !((e!% t e tri!% 7ourt

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In denyin& t e (etitioner

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A11ir$!tive De1enses,F (etitioner 7%!i$ed t !t 1or 2!nt or %!7= o1 t e (rest!tion,F e 7ou%dv!%id%y sto( t e (!y$ent o1 is 7 e7=, !nd t !t by redis7ountin& (etitioneri%i(in! Re!%ty v)O11i7e o1 t e President,3+/4 t e #ourt e%d'

3T4 e trend in $odern-d!y (ro7edure is to !77ord t e 7ourts bro!d dis7retion!ry (o2er su7 t !tt e !((e%%!te 7ourt $!y 7onsider $!tters be!rin& on t e issues sub$itted 1or reso%ution 2 i7 t e

(!rties 1!i%ed to r!ise or 2 i7 t e %o2er 7ourt i&nored) Sin7e ru%es o1 (ro7edure !re $ere too%sdesi&ned to 1!7i%it!te t e !tt!in$ent o1 justi7e, t eir stri7t !nd ri&id !((%i7!tion 2 i7 2ou%dresu%t in te7 ni7!%ities t !t tend to 1rustr!te r!t er t !n (ro$ote subst!nti!% justi7e, $ust !%2!ys

be !voided) Te7 ni7!%ity s ou%d not be !%%o2ed to st!nd in t e 2!y o1 eCuit!b%y !nd 7o$(%ete%yreso%vin& t e ri& ts !nd ob%i&!tions o1 t e (!rties)3+84

!vin& dis(osed o1 t e (ro7edur!% issue, t e #ourt s !%% no2 (ro7eed to t e $erits o1 t e7!se) T e $!in issue is 2 et er res(ondents !re o%ders in due 7ourse o1 Metrob!n= # e7= No)#-MA +9/++.9 5 #A !s to entit%e t e$ to 7o%%e7t t e 1!7e v!%ue o1 t e 7 e7= 1ro$ its dr!2er or

(etitioner erein)

Se7tion 6/ o1 t e Ne&oti!b%e Instru$ents L!2 de1ines ! o%der in due 7ourse, t us'

A o%der in due 7ourse is ! o%der 2 o !s t!=en t e instru$ent under t e 1o%%o2in&7onditions'

:!; T !t it is 7o$(%ete !nd re&u%!r u(on its 1!7eG

:b; T !t e be7!$e t e o%der o1 it be1ore it 2!s overdue, !nd 2it out noti7e t !t it !s been (revious%y dis onored, i1 su7 2!s t e 1!7tG

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:7; T !t e too= it in &ood 1!it !nd 1or v!%ueG

:d; T !t !t t e ti$e it 2!s ne&oti!ted to i$, e !d no noti7e o1 !ny in1ir$ity in t einstru$ent or de1e7t in t e tit%e o1 t e (erson ne&oti!tin& it)

In t e 7!se o1 ! 7rossed 7 e7=, !s in t is 7!se, t e 1o%%o2in& (rin7i(%es $ust !ddition!%%y be7onsidered' A 7rossed 7 e7= :!; $!y not be en7!s ed but on%y de(osited in t e b!n=G :b; $!y bene&oti!ted on%y on7e to one 2 o !s !n !77ount 2it ! b!n=G !nd :7; 2!rns t e o%der t !t it

!s been issued 1or ! de1inite (ur(ose so t !t t e o%der t ereo1 $ust inCuire i1 e !s re7eivedt e 7 e7= (ursu!nt to t !t (ur(oseG ot er2ise, e is not ! o%der in due 7ourse)3+94

B!sed on t e 1ore&oin&, res(ondents !d t e duty to !s7ert!in t e indorser

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T us, in t e !bsen7e o1 due (resent$ent, t e dr!2er did not be7o$e %i!b%e) #onseCuent%y,no ri& t o1 re7ourse is !v!i%!b%e to (etitioner !&!inst t e dr!2er o1 t e subje7t 7 e7=s, (riv!teres(ondent 2i1e, 7onsiderin& t !t (etitioner is not t e (ro(er (!rty !ut ori@ed to $!=e

(resent$ent o1 t e 7 e7=s in Cuestion)

In t is 7!se, t ere is no Cuestion t !t t e (!yees o1 t e 7 e7=, Lobit!n! or #onsin&, 2erenot t e ones 2 o (resented t e 7 e7= 1or (!y$ent) Lobit!n! ne&oti!ted !nd indorsed t e 7 e7=to res(ondents in e07 !n&e 1or P.9 , ) ) It 2!s res(ondents 2 o (resented t e subje7t 7 e7=1or (!y$entG o2ever, t e 7 e7= 2!s dis onored 1or re!son PA MENT STOPPED)F In ot er2ords, it 2!s not t e (!yee 2 o (resented t e 7 e7= 1or (!y$entG !nd t us, t ere 2!s no (ro(er

(resent$ent) As ! resu%t, %i!bi%ity did not !tt!7 to t e dr!2er) A77ordin&%y, no ri& t o1 re7ourseis !v!i%!b%e to res(ondents !&!inst t e dr!2er o1 t e 7 e7=, (etitioner erein, sin7e res(ondents!re not t e (ro(er (!rty !ut ori@ed to $!=e (resent$ent o1 t e subje7t 7 e7=)

o2ever, t e 1!7t t !t res(ondents !re not o%ders in due 7ourse does not !uto$!ti7!%%y$e!n t !t t ey 7!nnot re7over on t e 7 e7=)3+ 4 T e Ne&oti!b%e Instru$ents L!2 does not

(rovide t !t ! o%der 2 o is not ! o%der in due 7ourse $!y not in !ny 7!se re7over on t einstru$ent) T e on%y dis!dv!nt!&e o1 ! o%der 2 o is not in due 7ourse is t !t t e ne&oti!b%einstru$ent is subje7t to de1enses !s i1 it 2ere non-ne&oti!b%e)3+.4 A$on& su7 de1enses is t e!bsen7e or 1!i%ure o1 7onsider!tion,3/ 4 2 i7 (etitioner su11i7ient%y est!b%is ed in t is 7!se)Petitioner issued t e subje7t 7 e7= su((osed%y 1or ! %o!n in 1!vor o1 #onsin&