Commercial Law Review | Divina | 2nd Sem AY 2014-2015 |Page 1
Comsavings v. Capistrano This led the spouses to sue GCB and Comsavings for breach of
contract and damages. RTC ruled in favor of the spouses and ordered GCB
Aug. 28, 2013 and Comsavings to complete the construction of the house and pay damages.
Bersamin, J. CA affirmed.
Gabe Ruaro ISSUES/HELD:
1. WON GCB and Comsavings were solidarily liable. (Yes)
SUMMARY: RATIO:
The Sps. Capistrano obtained a loan to construct their house. Although The liability of COmsavings was based on a breach of contract. A banking
the house had not been completed, Comsavings bank required them to institution is obliged to exercise the highest degree of diligence as well as
sign a certificate of completion before releasing the proceeds of the high standards of integrity and performance in all its transactions because its
loan. The house was not completed in time. Nevertheless, Comsavings business is imbued with public interest.
demanded the payment of loan amortizations. The Capistranos sued Here, Comsavings was grossly negligent because it did not exercise
the bank for breach of contract and damages, which the courts granted, the requisite diligence and integrity. It made the Certification of completion
because… despite the fact that the house had not been completed.
That act was irregular per se because it contravened the purpose of
DOCTRINE: the certificate. It was also fraudulent, as by that process, it benefited by the
A banking institution serving as an originating bank for the Unified UHLP as an originator bank.
Home Lending Program (UHLP) of the Government owes a duty to Comsavings demands were also unfair, as it should not have made
observe the highest degree of diligence and a high standard of integrity them pre-sign the certificate of completion until it had confirmed that the
and performance in all its transactions with its clients because its house had been completed. It did not give the spouses the option not to sign
business is imbued with public interest. the certificate. It was thus grossly negligent, and liable for moral, temperate,
and exemplary damages.
CA affirmed.
FACTS:
The Sps. Capistrano owned a residential lot in the Infant Jesus Subdivision n
Bacoor, Cavite. They availed of the Unified Home Lending Program from the
National Home Mortgage Finance Corporation. They executed a construction
contract with GCB Builders, financed by a loan from Commsavings Bank (now
GSIS Family Bank) in accordance with the UHLP. According to the terms of
this construction contract, the house was to be built within 75 days
As part of the requirements for the release of the loan, Estrella
Capistrano had to sign a certificate of house completion and acceptance. She
did, and the loan was approved and the proceeds eventually given to GCB
Builders. However, the 75 day period ended without the completion of the
house.
NHMFC demanded that the Capistranos start paying the
amortization of their loan, as the loans had been released, and they had
certified that the house had been completed already.
