G.R. No. 147800 | November 11, 2003
Appraiser’s Negligence in Duty
Brief Facts:
United Coconut Planters Bank (UCPB) mistakenly caused the levy of a property belonging to Teofilo C. Ramos, believing him to be the judgment debtor, Teofilo Ramos, Sr., in a civil case. This error stemmed from the investigation conducted by Eduardo C. Reniva, an appraiser from UCPB’s Credit and Appraisal Investigation Department. Reniva was tasked to identify leviable property and found a residential lot under the name of “Teofilo C. Ramos” via a Tax Declaration and TCT. While he physically inspected the property and gathered neighborhood information confirming ownership by “Spouses Teofilo C. Ramos and Rebecca Ramos,” he failed to directly communicate with the owner to verify his identity. Based on Reniva’s report, which did not fully clarify the identity discrepancy, UCPB proceeded to annotate the levy on Teofilo C. Ramos’s title. Ramos, who was not the judgment debtor, discovered the wrongful encumbrance when he attempted to secure a loan, leading to significant distress, mental anguish, and physical ailments.
Issue: Whether UCPB is liable for damages for negligently causing the wrongful annotation of a levy on Teofilo C. Ramos’s property, given the appraiser’s role in identifying the property owner.
Yes, UCPB is liable for damages. Article 2176 of the Civil Code establishes liability for damages caused by fault or negligence. Article 2219 (10) allows for moral damages for physical suffering, mental anguish, and similar harm. Financial institutions, operating in the public interest, are expected to exercise a high degree of diligence in their transactions.
UCPB’s negligence was evident in its failure to thoroughly verify the identity of the property owner before causing the levy. While their appraiser, Eduardo C. Reniva, identified the property and its registered owner, “Teofilo C. Ramos,” his crucial omission was the lack of direct verification with the owner to confirm if he was indeed “Teofilo Ramos, Sr.,” the actual judgment debtor. This oversight, coupled with UCPB’s reliance on the appraiser’s report without further due diligence to clarify the name discrepancy, led directly to the wrongful encumbrance on Teofilo C. Ramos’s property. The Court found that the bank disregarded the importance of ascertaining the precise identity of the property owner, prioritizing instead the property’s marketability. As a direct consequence of this negligence, Teofilo C. Ramos suffered emotional and physical distress, impacting his personal and business life. Therefore, UCPB was held liable for moral damages and attorney’s fees due to its actionable negligence.
Read the full text here. https://lawphil.net/judjuris/juri2003/nov2003/gr_147800_2003.html
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