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Blunden vs. Union Bank of the Philippines

JOSEPH HARRY WALTER POOLE-BLUNDEN, PETITIONER, V. UNION BANK OF THE PHILIPPINES, RESPONDENT.

G.R. No. 205838 | 2017-11-29

D E C I S I O N
 
LEONEN, J.:
 
Banks are required to observe a high degree of diligence in their affairs. This encompasses their dealings concerning properties offered as security for loans. A bank that wrongly advertises the area of a property acquired through foreclosure because it failed to dutifully ascertain the property's specifications is grossly negligent as to practically be in bad faith in offering that property to prospective buyers. Any sale made on this account is voidable for causal fraud. In actions to void such sales, banks cannot hide under the defense that a sale was made on an as-is-where-is basis....