16 Andres Vs Manufacturers Hanover

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16 ANDRES VS MANUFACTURERS HANOVER & TRUST CORP

G.R. NO. 82670 SEPTEMBER 15, 1989

FACTS:
Andres, using the business name Irenes Wearing Apparel was engaged in the
manufacture of ladies garments, childrens wear, mens apparel and linens for local
and foreign buyers. Among its foreign buyers was Facts of the United States.
Sometime in August 1980, Facts instructed the First National State Bank (FNSB) of
New Jersey to transfer $10,000 to Irenes Wearing Apparel via Philippine National
Bank (PNB) Sta. Cruz, Manila branch. FNSB instructed Manufacturers Hanover and
Trust Corporation (Mantrust) to effect the transfer by charging the amount to the
account of FNSB with private respondent.
After Mantrust effected the transfer, the payment was not effected immediately
because the payee designated in the telex was only Wearing Apparel. Private
respondent sent PNB another telex stating that the payment was to be made to
Irenes Wearing Apparel.
On August 28, 1980, petitioner received the remittance of $10,000.
After learning about the delay, Facets informed FNSB about the situation. Facts,
unaware that petitioner had already received the remittance, informed private
respondent and amended its instruction y asking it to effect the payment to
Philippine Commercial and Industrial Bank (PCIB) instead of PNB.
Private respondent, also unaware that petitioner had already received the
remittance, instructed PCIB to pay $10,000 to petitioner. Hence, petitioner received
another $10,000 which was charged again to the account of Facets with FNSB.
FNSB discovered that private respondent had made a duplication of remittance.
Private respondent asked petitioner to return the second remittance of $10,000 but
the latter refused to do so contending that the doctrine of solution indebiti does not
apply because there was negligence on the part of the respondents and that they
were not unjustly enriched since Facets still has a balance of $49,324.
ISSUE: Whether or not the private respondent has the right to recover the second
$10,000 remittance it had delivered to petitioner
HELD:
Yes. Art 2154 of the New Civil Code is applicable. For this article to apply, the
following requisites must concur: 1) that he who paid was not under obligation to do
so; and 2) that payment was made by reason of an essential mistake of fact.
There was a mistake, not negligence, in the second remittance. It was evident by
the fact that both remittances have the same reference invoice number.

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