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FIRST DIVISION

[ G.R. No. 212050, April 15, 2020 ]

QUINTIN ARTACHO LLORENTE, PETITIONER, V. STAR CITY PTY LIMITED, REPRESENTED BY THE JIMENO AND COPE LAW OFFICES AS ATTORNEY-IN-FACT, RESPONDENT.

[G.R. No. 212216, January 15, 2020]

FIRST DIVISION [ G.R. No. 212050, January 15, 2020 ] QUINTIN ARTACHO LLORENTE, PETITIONER, V. STAR CITY PTY LIMITED, REPRESENTED BY THE JIMENO AND COPE LAW OFFICES AS ATTORNEY-IN-FACT, RESPONDENT. [G.R. No. 212216, January 15, 2020] STAR CITY PTY LIMITED, REPRESENTED BY THE JIMENO COPE & DAVID LAW OFFICES AS ITS ATTORNEY-IN-FACT, PETITIONER, V. QUINTIN ARTACHO LLORENTE AND EQUITABLE PCI BANK (NOW BDO UNIBANK, INC.), RESPONDENTS. R E S O L U T I O N CAGUIOA, J.: Before the Court are petitions for review on certiorari1 under Rule 45 of the Rules of Court respectively filed by petitioner Quintin Llorente (Llorente) in G.R. No. 212050 and petitioner Star City Pty Limited (SCPL) in G.R. No. 212216 assailing the Decision2 dated September 30, 2013 (Decision) and the Resolution3 dated April 10, 2014 of the Court of Appeals4 (CA) in CA-G.R. CV No. 94736. The CA Decision affirmed with modification the Decision5 dated April 16, 2009 rendered by the Regional Trial Court, Branch 134, City of Makati (RTC) in Civil Case No. 02-1423. The CA Resolution dated April 10, 2014 denied the motions for reconsideration filed by Llorente and SCPL. The Facts and Antecedent Proceedings The CA Decision narrates the factual antecedents as follows: x x x [SCPL] is an Australian corporation which operates the Star City Casino in Sydney, New South Wales, Australia. Claiming that it is not doing business in the Philippines and is suing for an isolated transaction, it filed on 25 November 2002 through its attorney-in-fact, Jimeno Jalandoni and Cope Law Offices, a complaint for collection of sum of money with prayer for preliminary attachment against x x x Llorente, who was a patron of its Star City casino and Equitable PCI Bank (EPCIB, for brevity). This case was docketed as Civil Case No. 02-1423 and raffled to Branch 134 of the Regional Trial Court (RTC) in the City of Makati. [SCPL] alleged that Llorente is one of the numerous patrons of its casino in Sydney, Australia. As such, he maintained therein Patron Account Number 471741. On 12 July 2000, he negotiated two (2) Equitable PCI bank drafts with check numbers 034967 and 034968 worth US $150,000.00 each or for the total amount of US $300,000.00 ("subject [demand/bank]6 drafts" [or simply "subject drafts"]) in order to play in the Premium Programme of the casino. This Premium Programme offers the patron a 1% commission rebate on his turnover at the gambling table and a .10% rebate for complimentary expenses. Before upgrading x x x Llorente to this programme, [SCPL] contacted first EPCIB to check the status of the subject drafts. The latter confirmed that the same were issued on clear funds without any stop payment orders. Thus, Llorente was allowed to buy in on a Premium Programme and his front money account in the casino was credited with US $300,000.00. On 18 July 2000, [SCPL] deposited the subject drafts with Thomas Cook Ltd. On 1 August 2000, it received the advice of Bank of New York about the "Stop Payment Order" prompting it to make several demands, the final being on 22 August 2002, upon Llorente to make good his obligation. However, the latter refused to pay. It likewise asked EPCIB on 30 August 2002 for a settlement which the latter denied on the ground that it was Llorente who requested the Stop Payment Order and no notice of dishonor was given. On 28 January 2003, the [RTC] deemed it proper to grant and issue a writ of preliminary attachment because the acts of Llorente, i.e., leaving the hotel premises without informing [SCPL] of his whereabouts, failing to pay for all the services he had availed and/or not making sure that these would be paid y the checks he negotiated and indorsed, requesting for a Stop Payment Order despite knowledge that these checks are to answer for the payment for all services he had availed, failing to communicate for the settlement of his outstanding obligation and for leaving and/or transferring residence without notifying [SCPL] of his forwarding address, are clear indications of his intention to renege on his obligation and defraud [SCPL]. For his part, Llorente alleged that he caused the stoppage of the subject drafts' payment because (SCPL's] personnel and representatives committed fraud and unfair gaming practices during his stay in the casino on 12 July up to 17 July 2000. He also countered that the case should be dismissed on the ground that [SCPL] lacks the legal capacity to sue since the "isolated tr1nsaction rule" for which it anchored its right to bring action in our courts presupposes that the transaction subject matter of the complaint must have occurred in the Philippines, which however, is not the situation at bar since it is clear from the narration that the same occurred in Australia. On the other hand, EPCIB, in its Answer, not only alleged [SCPL's] lack of personality to sue before Philippine courts, but denied also that it unjustifiably and maliciously refused to settle the obligation since it merely complied with the instructions of Llorente, as payee of the subject drafts, to stop payment thereon. It further went on saying that [SCPL] had no cause of action against it because there was no privity of contract between them. EPCIB likewise filed a cross-claim against Llorente since it already reimbursed the lace value of the subject drafts, pursuant to the demand of the latter. For such reason, it should be relieved of any and all liabilities under the subject drafts. Finding that [SCPL] had the legal capacity to sue and seek judicial relief before Philippine courts, the [RTC], on 16 April 2009, rendered a Decision holding both [Llorente and EPCIB] solidarily liable for the value of the subject drafts. It ruled that when Llorente, as payee of the subject drafts, signed at the back thereof, he is said to ha[ve] become an indorser who warrants that on due presentment, the instruments would be accepted or paid or both, as the case may be, according to their tenor, and that if they be dishonored and the necessary proceedings on dishonor be duly taken, they will pay the amount thereof to the holder. The same is also true for EPCIB, being the drawer of the subject drafts. It is of no moment if the bank was not a privy to the transaction for its liability as a drawer is not based on direct transaction but by virtue of the warranties it made within the purview of the Negotiable Instruments Law. The [RTC] even pointed that [Llorente and EPCIB] could not seek refuge on the alleged lack of notice of dishonor to them since they were responsible for the dishonor of the subject drafts aside from the fact that it would be futile to require such notice since it was EPCIB who countermanded the payment. The trial court did not also consider Llorente's justification for ordering a stopped payment as it found that it was done in order to escape liability of paying his obligations with [SCPL]. The decretal portion of [the RTC] Decision reads as: "WHEREFORE, premises considered, judgment is hereby rendered in favor of the plaintiff [SCPL] and against both defendants Llorente and [EPCIB], as follows: 1. Ordering defendants Quintin Llorente and Equitable PCI Bank to pay the plaintiff [SCPL], jointly and severally the amount of the subject bank drafts in the sum of us $300,000[.00;