CASE DIGEST: PHILIPPINE BANK OF COMMERCE v. RIA DE GUZMAN RIVERA G.R. No. 217411, December 13, 2023

(1) Can an ON-US check which has been cleared and credited to an account still be the subject of a stop payment order?
Answer: No. An ON-US check which has been cleared and credited to an account can no longer be the subject of a stop payment order.

(2) Is the bank liable for damages in case a check is dishonored due to the execution of a late stop payment order?
Answer: Yes. When a late stop payment order is enforced and the payee’s account is debited, resulting in the dishonor of the check withdrawn from such account, the bank is deemed to have committed a breach of contract which makes it liable for damages.

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