Respondent Province of Tarlac allowed a retired hospital cashier to receive checks for the payee hospital for a period three years and in not properly ascertaining why the retired hospital cashier was collecting checks for the payee hospital in addition to the hospital’s real cashier. Associated Bank, as collecting bank, received and indorsed the said checks.
Whether or not the “doctrine of comparative negligence” apply.
YES. The Court finds as reasonable, the proportionate sharing of fifty percent – fifty percent (50%-50%). Respondent Province contributed to the loss and shall be liable to the PNB for fifty (50%), Province of Tarlac can only recover fifty percent (50%) from PNB. Associated Bank, shall be liable to PNB for fifty (50%). It is liable on its warranties as indorser of the checks which were deposited to it.