Preview

Case Digest

Satisfactory Essays
Open Document
Open Document
308 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Digest
THE GREAT EASTERN LIFE INSURANCE CO., plaintiff-appellant, vs. HONGKONG & SHANGHAI BANKING CORPORATION and PHILIPPINE NATIONAL BANK, defendants-appellees.

Ponente: Justice
Facts:
* May 3, 1920: Great Eastern Life Ins. Co. (Eastern) drew its check for P2,000 on the Hongkong and Shanghai Banking Corporation (HSBC) payable to the order of Lazaro Melicor. * E. M. Maasim fraudulently obtained possession of the check, forged Melicor's signature, as an endorser, and then personally endorsed and presented it to the Philippine National Bank (PNB) and it was placed to his credit. * Next day: PNB endorsed the check to the HSBC who paid it * HSBC sent a bank statement to the Eastern showing the amount of the check was charged to its account, and no objection was made * 4 months after the check was charged, it developed that Lazaro Melicor, to whom the check was made payable, had never received it, and that his signature, as an endorser, was forged by Maasim, * Eastern promptly made a demand upon the HSBC to credit the amount of the forged check * Eastern filed against HSBC and PNB * RTC: dismissed the case
Issue: Whether the Hongkong & Shanghai Banking Corporation (HSBC) and Philippine National Bank (PNB), defendants should be charged for the payment made to E.M Maasim for the P2000 which was paid on the forged check.
Held: The Supreme Court held that judgment of the lower court is reversed. In favor of the plaintiff and against the Hongkong and Shanghai Banking Corporation for the P2,000, with interest thereon from November 8, 1920 at the rate of 6 per cent per annum, and the costs of this action, and a corresponding judgment will be entered in favor of the Hongkong and Shanghai Banking Corporation against the Philippine National Bank for the same amount, together with the amount of its costs in this

You May Also Find These Documents Helpful

  • Satisfactory Essays

    F. Siegel discovered that the check had been paid and informed the bank that the check was…

    • 339 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Did Welch(W) handle the matter properly when Dringle (D) left a check, a message, and a set of keys for the motorboat at W’s office, W put these items in an envelope and kept it in her office safe, then W deposited the check in her client trust account two weeks later?…

    • 781 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Case Study Ephonia M Green

    • 2494 Words
    • 10 Pages

    The crime went undetected for a long period of time due to the lack of supervision from AAMC and for the lack of segregation of duties. Once the invoices were submitted by Green the accounting department should not have returned to checks to Green, and the checks should have been mailed by the accounting department not Green. The accounting department should have also checked each invoice before the check was generated. There was also lack of management oversight, which all of these contributed to green embezzling more than $5.1 million. Embezzlement is a kind of property crime; it occurs when someone is in charge of someone else’s money…

    • 2494 Words
    • 10 Pages
    Better Essays
  • Good Essays

    Triffin would not be able to claim holder in due course status. Jermielem Merriwether never signed his check. Even though the clerk from A-1 printed his name on the check, which was not a proper signature. Merriwether was the only one who was authorized to sign the check. Since the check was never properly signed, there was no requirement that it had to be paid.…

    • 766 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Any Kind Checks Cashed

    • 832 Words
    • 3 Pages

    It is imperative in the case of ‘Any Kind Checks Cashed, Inc. v. Talcott’ to determine if the holder of the instrument acted in good faith, in fair dealing as is compulsory in order to be considered the holder in due course. According to the Commercial Law Article 3-103 (a) (4); good faith refers to sincerity or honesty in fact and the adherence to logical commercial standards of fair dealing (Twomey, D., & Jennings, M.).…

    • 832 Words
    • 3 Pages
    Better Essays
  • Good Essays

    MGMT 108 Case 2

    • 1251 Words
    • 1 Page

    before delivery, they did not send a written notice to Regional Bank. Therefore, Regional Bank has…

    • 1251 Words
    • 1 Page
    Good Essays
  • Good Essays

    Internal Fraud Case Study

    • 653 Words
    • 3 Pages

    This case is about the $4 million embezzlement fraud by an employee of a magazine publisher, and how the fraud was discovered. The type of fraud discovered was a billing scheme that was found on accident. A billing scheme is, “Any scheme in which a person causes his employer to issue a payment by submitting invoices for fictitious goods or services, inflated invoices or invoices for personal purchases.” 1 In this case, it just so happened that the new chief internal auditor decided to stop by the accounts payable department to collect a series of recently submitted invoices so that he could meet with the vice president to understand how the accounting codes work. In doing so, they found that a number of invoices had been forged. According to the 2010 Global Fraud Studies, “11% of the time, victim organizations either had to stumble onto the fraud or be notified of it by a third party in order to detect it.” 2 With coincidence one, the investigation revealed that the forgeries were coming from the painting operations in its facilities department, in which was overseen by Albert Miano. Miano started his scheme by creating false invoices for the jobs done by painters. He would not reinvoice exactly the same work done during a week, but he would make it look similar to where no one would ever become suspicious. The opportunity for Miano to commit fraud came into play when he was allowed to go and collect the approved invoices and insert his own replicated fraudulent invoices as approved. He also was the one who transported the invoices and collected…

    • 653 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Craig Mezey Case

    • 633 Words
    • 3 Pages

    On January 03, 2016, I sent a certified letter and asked the Bank to correct this account. Also, I contacted The Bank of the West via phone, we had a conversation with Mrs. Latisha (the Bank of the West recorded our phone conversation), and sent all documents to correct this account. Bank ignored my letter(s).…

    • 633 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Business Law

    • 483 Words
    • 2 Pages

    However, in the earlier cashing of the check for $10,000, the manager tried calling Talcott to get his approval, but had not been able to reach him. So the supervisor relied solely on her judgment and experience and in doing so had not acted in good faith. Had the check cashing store asked Talcott whether the $10,000 check was valid when it was presented by Guarino, it would have learned that Talcott had placed a stop payment order on it. Moreover, circumstances under which funds were released to endorser without authenticating check with its maker, should have aroused suspicion of the Any Kind. Guarino had not been a…

    • 483 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Big Time Toymaker

    • 611 Words
    • 3 Pages

    The stature of frauds plays a major role. Per the statute some terms must be in writing to be enforceable. In this case, they are. They are in writing via email and via fax; BTT sent Chou an email stating the details of the distribution.…

    • 611 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    The check cashing company has no way of determining if a check has been dishonored if additional steps are not taken. In the event of fraud and if the company has taken the proper steps they can lose HIDC status. HIDC status is extremely important for anyone who is honoring checks because it will limit the liability of the holder if they have taken precautions that are ordinary and responsible for their industry. In determining the fairness of the case ruling in Any Checks Cashed inc. v. Tolcott, we must determine if ACC acted with ordinary and responsible precautions when they agreed to cash that…

    • 1171 Words
    • 5 Pages
    Better Essays
  • Better Essays

    All the Presidents Men

    • 848 Words
    • 4 Pages

    Barker was one of the five burglars. A Florida bank made out the check to Kenneth H.…

    • 848 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    This letter is to clarify the payment made for my mother burial expense. The check written in the amount of $300.00 was written to Dr. Andrea Taylor to buy fabric to make my mother an ashoke head tie for her burial ceremony. No additional debt incurred on credit for my mother burial ceremony. In Nigeria everything is paid upfront. No exceptions. My family paid for the burial expense.…

    • 68 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Sept. 15 Paid P 5,600 including VAT of 12% to Air 21 Express for the freight of merchandise purchased from Manila Car Corporation. Issued Check No. 48502 with covering Check Voucher No. 002.…

    • 1197 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    accountancy class 12 project

    • 3069 Words
    • 13 Pages

    through a cheque and drew a bill for balance for three months. However on July 4, Gupta & Co.…

    • 3069 Words
    • 13 Pages
    Satisfactory Essays