Westmont Bank v. Ong [G.R. No. 132560. January 30, 2002]

30 Jul


Manager’s checks payable to respondent Ong was intercepted, indorsed by forging Ong’s signature, and deposited to petitioner. Ong sought for remedies after learning this but to no avail.



Whether or not respondent Ong may still recover from petitioner.



YES. Ong’s signature as payee, in the case at bar, was forged to make it appear that he had made an indorsement in favor of the forger. Such signature should be deemed as inoperative and ineffectual. Petitioner, as the collecting bank, grossly erred in making payment by virtue of said forged signature. Ong should therefore be allowed to recover from the collecting bank.



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