Escolar Documentos
Profissional Documentos
Cultura Documentos
643
said premiums to its account, does not free the same from its
obligation to petitioner Areola. As held in Prudential Bank v.
Court of Appeals citing the ruling in McIntosh v. Dakota Trust
Co.: A bank is liable for wrongful acts of its officers done in the
interests of the bank or in the course of dealings of the officers in
their representative capacity but not for acts outside the scope of
their authority. A bank holding out its officers and agent as
worthy of confidence will not be permitted to profit by the frauds
they may thus be enabled to perpetrate in the apparent scope of
their employment; nor will it be permitted to shirk its
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THIRD DIVISION.
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the
by
Exh. A.
Exh. B.
Exh. C.
Exh. 2.
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Exh. D.
Exh. F.
Exh. E.
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Exh. G.
Exh. H.
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that the premium had been paid on December 17, 1984; (c)
the reinstatement of the policy with a proposal to extend its
effective period to December 17, 1985; and (d) respondent
insurance companys apologies for the inconvenience
caused upon petitionerinsured. The appellate court added
that respondent insurance company even relieved Malapit,
its Baguio City manager, of his job by forcing him to resign.
Petitioner-insured moved for the reconsideration of the
said decision which the Court of Appeals denied. Hence,
this petition for review on certiorari anchored on these
arguments:
I
Respondent Court of Appeals is guilty of grave abuse of discretion
and committed a serious and reversible error in not holding
Respondent Prudential liable for the cancellation of the insurance
contract which was admittedly caused by the fraudulent acts and
bad faith of its own officers.
II
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Rollo, p. 35.
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ones, in case one of the obligors should not comply with what is incumbent
upon him.
The injured party may choose between the fulfillment and the rescission of the
obligation, with the payment of damages in either case. He may also seek
rescission, even after he has chosen fulfillment, if the latter should become
impossible.
The court shall decree the rescission claimed, unless there be just cause
authorizing the fixing of a period.
This is understood to be without prejudice to the rights of third persons who
have acquired the thing, in accordance with articles 1385 and 1388 and the
Mortgage Law.
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that a right of the plaintiff, which has been violated or invaded by the
defendant, may be vindicated or recognized and not for the purpose of
indemnifying the plaintiff for any loss suffered by him.
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SO ORDERED.
Feliciano (Chairman), J., concur.
Bidin, J., On leave.
Melo, J., In the result.
Vitug, J., In the results, Malapit being an
authorized and responsible officer of private respondent
company.
Petition granted, judgment reversed.
Note.One who clothes another with apparent
authority as his agent and holds him out to the public as
such cannot be permitted to deny the authority of such
person to act as his agent to the prejudice of innocent third
parties dealing with such person in good faith and in the
honest belief that he is what he appears to be. (Cuison vs.
Court of Appeals, 227 SCRA 391 [1993])
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