G.R. No. L-29432 August 6, 1975
Lessons Applicable: Forgery (Negotiable Instruments Law)
FACTS:
- Jai-Alai Corp. deposited 10 checks with BPI.
- The checks were from Ramirez, a sales agent of the Inter-Island Gas were all payable to Inter-Island Gas Service, Inc. or order.
- Inter-Island Gas discovered that all the indorsements made on the checks purportedly by its cashiers were forgeries.
- BPI debited Jai-Alai's current account and forwarded to it the checks containing the forged indorsements
ISSUE: W/N BPI had the right to debit.
HELD: YES.
- Having indorsed the checks to BPI, Jai-Alai is deemed to have given the warranty prescribed in Section 66 of the NIL that every single one of those checks "is genuine and in all respects what it purports to be."
- The depositor of a check as indorser warrants that it is genuine and in all respects what it purports to be.
- Jai Alai Corporation negligent in accepting the checks without question from Antonio Ramirez notwithstanding that the payee was the Inter-Island Gas Services, Inc. and it did not appear that he was authorized to indorse it.
