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    MWSS V CA

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    Roxanne Avila
    Metropolitan Waterworks and Sewerage System (MWSS) issued 23 checks that were later forged, totaling P3,457,903. MWSS demanded Philippine National Bank (PNB) restore the amount, but PNB refused. The Supreme Court ruled in favor of PNB, finding MWSS was negligent in supervising the printing of its personalized checks and failed to provide appropriate security measures, laying its records open to unauthorized access. While the 23 checks were considered forgeries, MWSS's gross negligence precluded it from claiming forgery as a defense. The forgeries also were not proven by clear and convincing evidence.

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    MWSS V CA

    Uploaded by

    Roxanne Avila
    98 views1 page
    Metropolitan Waterworks and Sewerage System (MWSS) issued 23 checks that were later forged, totaling P3,457,903. MWSS demanded Philippine National Bank (PNB) restore the amount, but PNB refused. The Supreme Court ruled in favor of PNB, finding MWSS was negligent in supervising the printing of its personalized checks and failed to provide appropriate security measures, laying its records open to unauthorized access. While the 23 checks were considered forgeries, MWSS's gross negligence precluded it from claiming forgery as a defense. The forgeries also were not proven by clear and convincing evidence.

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    negotiable instruments law commercial law

    Original Title

    MWSS v CA

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    Metropolitan Waterworks and Sewerage System (MWSS) issued 23 checks that were later forged, totaling P3,457,903. MWSS demanded Philippine National Bank (PNB) restore the amount, but PNB refused. The Supreme Court ruled in favor of PNB, finding MWSS was negligent in supervising the printing of its personalized checks and failed to provide appropriate security measures, laying its records open to unauthorized access. While the 23 checks were considered forgeries, MWSS's gross negligence precluded it from claiming forgery as a defense. The forgeries also were not proven by clear and convincing evidence.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    98 views1 page

    MWSS V CA

    Uploaded by

    Roxanne Avila
    Metropolitan Waterworks and Sewerage System (MWSS) issued 23 checks that were later forged, totaling P3,457,903. MWSS demanded Philippine National Bank (PNB) restore the amount, but PNB refused. The Supreme Court ruled in favor of PNB, finding MWSS was negligent in supervising the printing of its personalized checks and failed to provide appropriate security measures, laying its records open to unauthorized access. While the 23 checks were considered forgeries, MWSS's gross negligence precluded it from claiming forgery as a defense. The forgeries also were not proven by clear and convincing evidence.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    NIL.2.2 MWSS vs.

    CA, 143 SCRA 20

    FACTS: Metropolitan Waterworks and Sewerage System (MWSS) had an account with PNB.
    The authorized signature for PNB Account No. 6 were those of MWSS treasurer Jose Sanchez,
    its auditor Pedro Aguilar, and its acting General Manager Victor L. Recio. When it was still
    called NAWASA, MWSS made a special arrangement with PNB so that it may have personalized
    checks to be printed by Mesina Enterprises. These personalized checks were the ones being used
    by MWSS in its business transactions.

    From March to May 1969, MWSS issued 23 checks to various payees in the aggregate
    amount of P320,636.26. During the same months, another set of 23 checks containing the same
    check numbers earlier issued were forged. The aggregate amount of the forged checks amounted
    to P3,457,903.00. This amount was distributed to the bank accounts of three persons: Arturo
    Sison, Antonio Mendoza, and Raul Dizon.

    MWSS then demanded PNB to restore the amount of P3,457,903.00. PNB refused. The
    trial court ruled in favor of MWSS but the Court of Appeals reversed the trial courts decision.

    ISSUE: Whether or not PNB should restore the said amount.

    HELD: No. MWSS is precluded from setting up the defense of forgery. It has been proven that
    MWSS has been negligent in supervising the printing of its personalized checks. It failed to
    provide security measures and coordinate the same with PNB. Further, the signatures in the
    forged checks appear to be genuine as reported by the National Bureau of Investigation so much
    so that the MWSS itself cannot tell the difference between the forged signature and the genuine
    one. The records likewise show that MWSS failed to provide appropriate security measures over
    its own records thereby laying confidential records open to unauthorized persons. Even if the
    twenty-three (23) checks in question are considered forgeries, considering the MWSSs gross
    negligence, it is barred from setting up the defense of forgery under Section 23 of the Negotiable
    Instruments Law.

    The Supreme Court further emphasized that forgery cannot be presumed. It must be established
    by clear, positive, and convincing evidence. This was not done in the present case.

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