BSP awaits Court of Appeals rule on Banco Filipino appeal

Banco Filipino’s P18.8-billion damages suit against the Bangko Sentral ng Pilipinas (BSP) has already been dismissed by the lower courts but central bank officials said they still await the decision of the Court of Appeals where the appeal is still pending.

The Supreme Court had issued a minute resolution earlier this week, ruling that the lower courts did not abuse their discretion when they decided to include the BSP as a defendant in the lawsuit filed by the Banco Filipino Savings and Mortgage Bank over a decade ago.

According to the BSP in a statement, it learned of the minute resolution but did not receive a copy since the case was originally filed by the Central Bank Board of Liquidators (CB-BOL) and it was not party to the case.

BSP deputy general counsel Elmore Capule said in an interview that the SC decision was largely “persuasive” since it was not a full decision which would settle a dispute over legal doctrine.

Nevertheless, Capule explained that the ruling only meant that the lower court could proceed with an earlier decision naming BSP as a co-defendant in the damage suit filed by BF against the defunct Central Bank of the Philippines and later, the CB-BOL.

The RTC decided on Jan. 27, 2004 that the BSP could be included in the damage suit against CB-BOL, saying that the new central bank was a “successor-in-interest”.

According to Capule, however, that case has already been dismissed by Branch 136 of the Makati Regional Trial Court where it was originally filed by BF.

That case, according to Capule, was now on appeal because the RTC had denied BF’s notice of appeal and the bank was now appealing the denial of that notice before the Court of Appeals.

Capule explained that the BSP was not party to the case because it was the CB-BOL that decided to oppose the inclusion of the BSP in the damage suit. The BSP itself, he said, moved for outright dismissal which the RTC granted.

Capule said the RTC dismissed the case against the BSP on June 30, 2006 while the CB-BOL pursued its motion to exclude the BSP from the proceedings on the grounds that its inclusion would delay the case.

In 2006, there were talks of a settlement between the BSP and BF but central bank officials rejected the bid for a negotiated settlement of the bank’s P18-billion damage suit.