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Philippines National Bank (PNB) vs. Erlando T. Rodriguez, et al.

PHILIPPINE NATIONAL BANK, Petitioner, versus ERLANDO T. RODRIGUEZ and NORMA RODRIGUEZ, Respondents.

G.R. No. 170325 | 2008-09-26

D E C I S I O N

REYES, R.T., J.:

WHEN the payee of the check is not intended to be the true recipient of its proceeds, is it payable to order or bearer? What is the fictitious-payee rule and who is liable under it? Is there any exception?

These questions seek answers in this petition for review on certiorari of the Amended Decision[1] of the Court of Appeals (CA) which affirmed with modification that of the Regional Trial Court (RTC).[2]

The Facts

The facts as borne by the records are as follows:

Respondents-Spouses Erlando and Norma Rodriguez were clients of petitioner Philippine National Bank (PNB), Amelia Avenue Branch, Cebu City. They...