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    Serrano V Central Bank

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    Christelle Ayn Baldos
    Manuel Serrano had time deposits totaling P350,000 with the now dissolved Overseas Bank of Manila. When the bank failed to repay the deposits, Serrano sued the Central Bank of the Philippines, claiming it was jointly liable. The Supreme Court ruled that Central Bank was not liable because bank deposits create a debtor-creditor relationship, not a trust. As a creditor of Overseas Bank, Serrano's remedy was against the bank for failing to repay its debt, not against Central Bank. The concurring opinion also found that Central Bank had no ministerial duty to repay Serrano's deposits.

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    © All Rights Reserved
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    Serrano V Central Bank

    Uploaded by

    Christelle Ayn Baldos
    59 views1 page
    Manuel Serrano had time deposits totaling P350,000 with the now dissolved Overseas Bank of Manila. When the bank failed to repay the deposits, Serrano sued the Central Bank of the Philippines, claiming it was jointly liable. The Supreme Court ruled that Central Bank was not liable because bank deposits create a debtor-creditor relationship, not a trust. As a creditor of Overseas Bank, Serrano's remedy was against the bank for failing to repay its debt, not against Central Bank. The concurring opinion also found that Central Bank had no ministerial duty to repay Serrano's deposits.

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    Serrano v Central Bank.docx

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    Manuel Serrano had time deposits totaling P350,000 with the now dissolved Overseas Bank of Manila. When the bank failed to repay the deposits, Serrano sued the Central Bank of the Philippines, claiming it was jointly liable. The Supreme Court ruled that Central Bank was not liable because bank deposits create a debtor-creditor relationship, not a trust. As a creditor of Overseas Bank, Serrano's remedy was against the bank for failing to repay its debt, not against Central Bank. The concurring opinion also found that Central Bank had no ministerial duty to repay Serrano's deposits.

    Copyright:

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

    Serrano V Central Bank

    Uploaded by

    Christelle Ayn Baldos
    Manuel Serrano had time deposits totaling P350,000 with the now dissolved Overseas Bank of Manila. When the bank failed to repay the deposits, Serrano sued the Central Bank of the Philippines, claiming it was jointly liable. The Supreme Court ruled that Central Bank was not liable because bank deposits create a debtor-creditor relationship, not a trust. As a creditor of Overseas Bank, Serrano's remedy was against the bank for failing to repay its debt, not against Central Bank. The concurring opinion also found that Central Bank had no ministerial duty to repay Serrano's deposits.

    Copyright:

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

    Manuel M. Serrano vs.

    Central Bank of The Philippines, Overseas Bank of Manila


    G.R. No. L30511
    February 14, 1980
    Facts: Serrano made a time deposit, for one year with 6% interest, P150,000.00 with the
    respondent Overseas Bank of Manila. Concepcion Maneja also made a time deposit, for one year
    with 612% interest of P200,000.00 with the same respondent Overseas Bank of Manila.
    Concepcion Maneja, then married, assigned and conveyed to Serrano her time deposit of
    P200,000. They made several demands for encashment from Overseas Bank, not a single one of
    the time deposit certificates was honored.
    Central Bank dissolved and liquidated Overseas Bank of Manila. Central Bank denied that it is a
    guarantor of the permanent solvency of any banking institution as claimed by Serrano. Central
    Bank avers no knowledge of Serranos claim that the properties given by Overseas Bank of
    Manila as additional collaterals to Central Banks for the formers overdrafts and emergency
    loans were acquired from the depositors money including the time deposits of Serrano.
    Hence, this petition.
    Issue: Whether or not Central Bank is jointly and solidary liable for damages due to breach of
    trust? No
    Held: Both parties overlooked the fundamental principle in the nature of bank deposits when
    Serrano claimed that there should be created a constructive trust in his favor when the Overseas
    Bank of Manila increased the collaterals in favor of Central Bank for the formers overdrafts and
    emergency loans, since these collaterals were acquired by the use of depositors money.
    Bank deposits are in nature of irregular deposits. They are really loans because they earn interest.
    All kinds of bank deposits, whether fixed, savings or current are to be treated as loans and are to
    be covered by the loans. Current and savings deposits are loans to a bank because it can use the
    same. Serrano here in the making time deposits that earn interests with Overseas Bank of
    Manila was in reality a creditor of Central Bank and not a depositor. The respondent
    bank was in turn a debtor of Serrano. Failure of the respondent bank to honor the time deposit is
    failure to pay obligations a debtor and not a breach of trust arising from depositorys failure to
    return the subject matter of the deposit.
    Concurring, Aquino:
    Serrano has no causes of action against the Central Bank to obtain his time deposits of P350,000,
    plus interests. It is not the Central Bank's ministerial duty to pay Serranos time deposits or to
    hold the mortgaged properties in trust for the depositors of the Overseas Bank of Manila. Serrano
    has no cause of action for prohibition, a remedy usually available against any tribunal, board,
    corporation or person exercising judicial or ministerial functions.

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