Tony bought a Ford Expedition from a car dealer in Muntinlupa City. As payment, Tony issued a check drawn against his current account with Premium Bank. Since he has a good reputation, the car dealer allowed him to immediately drive home the vehicle merely on his assurance that his check is sufficiently funded. When the car dealer deposited the check, it was dishonored on the ground of “Account Closed”. After an investigation, it was found that an employee of the bank misplaced Tony’s account ledger. Thus, the bank erroneously assumed that his account no longer exists. Later, it turned out that Tony’s account has more than sufficient funds to cover the check. The dealer however, immediately filed an action for recovery of possession of the vehicle against Tony for which he was terribly humiliated and embarrassed. Does Tony have a cause of action against Premium Bank?
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XII.
Tony has a cause of action for damages against the bank. Bank transactions are vested with public interest. Banking institutions are thus required to observe extraordinary diligence in dealing with the accounts of its clients. Premium bank did not observe due diligence and was negligent in handling Tony’s account. Premium bank should therefore be held liable.
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