The Supreme Court ruled that banks can be held liable for moral damages due to negligence even without proof of bad faith or malice.
In a case involving Banco de Oro (BDO), the court ordered the bank to pay depositors Remedios and Angelita Antonino the full amount of their time deposits plus PHP 100,000 in moral damages.
The Antoninos discovered their funds were allegedly withdrawn with a forged signature while they still held the original certificates.
The court found BDO negligent for failing to verify the withdrawal properly and for not producing key documents.
The ruling emphasized that banks must exercise a very high degree of diligence, higher than that of a “good father of a family,” due to the fiduciary trust placed in them.
Source: PhilNews24 | September 29, 2025
SUPREME COURT RULES BANKS CAN BE HELD LIABLE FOR NEGLIGENCE WITHOUT PROOF OF BAD FAITH
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