12/07/2026
SUPREME COURT HOLDS BDO LIABLE FOR UNAUTHORIZED WITHDRAWALS FROM DEPOSITOR'S ACCOUNTS
The Supreme Court (SC) has ruled that Banco de Oro (BDO) is liable for unauthorized withdrawals from a depositor's accounts after finding that the bank failed to exercise the extraordinary diligence required of banking institutions by disregarding its own security procedures and internal banking rules.
"BDO totally failed to comply with its duty to exercise extraordinary diligence in taking care of Seastres' bank accounts. For this, BDO should be liable for the full amount of the actual damages suffered by Seastres. Banks are expected and required to exercise extraordinary diligence in their business dealings, particularly in handling their clients' accounts."
-CAGUIOA, J.
Supreme Court, Third Division
February 13, 2023
[https://dlsurf.com/l/9hcyfa5]