REPUBLIC OF THE PHILIPPINES

COURT OF APPEALS
MANILA

Eddie C. Olalia,
Appellant

CA GR CV NO. 3018
-versus-

RTC CIVIL CASE NO.

05-401
For: Motion for

Reconsideration on the
decision dated
November
25, 1994

BPI Express Card Corporation,

Appellee

Pursuant to the
Notice of this Honorable Court,
Appellant
Eddie C. Olalia
By counsel most respectfully submits his

APPELLANTS BRIEF
SUBJECT INDEX
CONTENTS
PAGE

COVER PAGE
1
SUBJECT INDEX
2
TABLE OF AUTHORITIES
3
ASSIGNMET OF ERRORS
4
STATEMENT OF THE CASE
4-8
STATEMENT OF FACTS
8-11
ISSUES
11-12
ARGUMENTS
12-15
A. The court failed to prove that the extension card in the name of
Cristina G. Olalia was validly issued and received by Eddie C. Olalia.
There are two requirements before an extension/supplementary
card is issued. First, payment of the necessary fee, and second,
submission of an application for the purpose. None of these
requirements were shown to have been complied with by Olalia.
The court found that in Olalias applications for the original as well
as the renewal card, he never applied for an extension card in the
name of his wife. BECC also failed to show any receipt for any fee
given in payment for the purpose of securing an extension card.
B. The court committed mistake in rendering a decision that Eddie
C. Olalia is responsible for the purchases made from the extension
card. Appellant cannot be held responsible because of the fact that
BECC failed to establish that the extension card in the name of
2

Cristina G. Olalia was validly issued and received by him. The time
appellant applied credit card with BECC in 1991, he and his wife
Cristina were already divorced. Also by the time the extension card,
which was under the name of Cristina G. Olalia, was issued and
allegedly received by the appellant, Cristina was no longer in the
Philippines. She left for States in the year 1986.

PRAYER
15-16
APPENDIX
16

TABLE OF AUTHORITIES

PHILIPPINE JURISPRUDENCE
PAGE

Ermitao vs. Court of Appeals, G.R. No. 127246, 306 SCRA 218, 244
(1999)
14
Palmares vs. Court of Appeals, G.R. No. 126490, 288 SCRA 422, 433
(1998)
14
Qua Chee Gan vs. La Union & Rock, Co., Ltd., 98 Phil. 85
14
BOOKS

Page 726, Civil Code of the Philippines Annotated by Edgardo Paras (2012)
14

PHILIPPINE STATUTE

Article 1377 of the CIVIL CODE OF THE PHILIPPINES

14

WEBSITE

Paragraph 2, Terms and Conditions Governing the Issuance and Use of BPI
6, 10
Express Credit Cards, at www.bpicards.com/page/60
Paragraph 10, Terms and Conditions Governing the Issuance and Use of BPI
13
Express Credit Cards, at www.bpicards.com/page/60

ASSIGNMENT OF ERRORS

The trial court committed the following errors:

1. The court failed to prove that the extension card in the name of
Cristina G. Olalia was validly issued and received by Eddie C.
Olalia.
2. The court rendered a decision that Eddie C. Olalia is responsible
for the purchases made from the extension card thus ordering
him to pay the total amount of One Hundred Thirty-Six Thousand
Two Hundred Ninety Pesos and Ninety-Seven Centavos (P136,
290.97) Philippine Currency.

I.

STATEMENT OF THE CASE

Nature of the Action

1.1.

This is an appeal from the decision of the court a quo granting

the Motion for Reconsideration, dated December 20, 1994,
filed by the appellee against the appellant. It alleged that the
appellant is responsible for the purchases arising from the use
of the extension card since he allegedly received the same, as
evidenced by his signature appearing in the Renewal Card
Acknowledgement Receipt and by the express provision of
paragraph 2 of the terms and conditions governing the use
and issuance of a BPI Express Card, making the cardholder
and his extension jointly and severally liable for all purchases
and availments made through the use of the card.

1.2.

The case arose from the time when appellant, Olalia, applied
in the credit card system of the appellee, BPI Express Card
Corporation (BECC). Appellant was granted membership and
credit accommodation with BECC. Appellants card expired
and a renewal card was issued. BECC also issued another card
which was an extension of the appellants credit card in the
name of Cristina G. Olalia, appellants ex-wife. BECC alleges
that the extension card was delivered and received by the
appellant at the same time as the renewal card. It was found
that the extension card in the name of Cristina G. Olalia was
used

for

purchases

made

from

March

to

April

1991,

particularly in the province of Iloilo and the City of Bacolod.

Total unpaid charges from the use of this card amounted to
5

One Hundred One Thousand Eight Hundred Forty-Four and

Fifty-Four Centavos (P101, 844. 54) Philippine Currency.

Summary of the Proceedings

1.3.

BECC sent a demand letter to the appellant, to which the

latter denied liability saying that said purchases were not
made under his own credit card and that he did not apply for
nor receive the extension card in the name of his wife. In an
Order dated September 29, 1995, Cristina G. Olalia was
dropped as defendant by the trial court.1

1.4.

A case for collection was filed by BECC before the RTC but
appellant only admits responsibility for the amount of Thirteen
Thousand Eight Hundred Eighty Three and Twenty-Seven
Centavos (P13, 883.27) Philippine Currency, representing
purchases made under his own credit card. After trial on the
merits, a decision was rendered as follows:
WHEREFORE, judgment is rendered ordering defendant Eddie
C. Olalia to pay plaintiff the sum of Thirteen Thousand Eight
Hundred Eighty-Three Pesos and Twenty-seven Centavos (P13,
883.27), Philippine Currency with interest thereon at the legal
rate from June 18, 1991, until fully paid; and to pay the costs.
SO ORDERED. 2

1.5.

From the aforesaid decision, a Motion for Reconsideration was

filed, alleging that Olalia should also be held liable for the

1 Records, p. 38.
2 Rollo, p.18.
6

purchases arising from the use of the extension card since he

allegedly received the same, as evidenced by his signature
appearing in the Renewal Card Acknowledgement Receipt and
by the express provision of paragraph 2 of the terms and
conditions governing the use and issuance of a BPI Express
Card, making the cardholder and his extension jointly and
severally liable for all purchases and availments made
through the use of the card.3
1.6.

On April 28, 1995, the Motion for Reconsideration was granted

and an Order was issued, stating:
Defendant Eddie C. Olalia has not filed any reaction paper up
to

the

present

relative

to

plaintiffs

MOTION

FOR

RECONSIDERATION dated December 20, 1994.

Finding the allegations in said motion to be meritorious, the
same is hereby granted.
WHEREFORE, the dispositive portion of the decision dated
November

25,

1994,

is

reconsidered

and

accordingly

amended/corrected to read as follows:

WHEREFORE, judgment is rendered ordering defendant Eddie
C. Olalia to pay plaintiff the sum of One Hundred Thirty Six
Thousand Two Hundred Ninety Pesos and Ninety-seven
Centavos (P136, 290.97) Philippine Currency, as of October
27, 1991.
SO ORDERED.4

Rulings and Orders of the Court

3See paragraph 2, Terms and Conditions Governing the Issuance and Use of
BPI Express Credit Cards, available at www.bpicards.com/page/60.
4 Rollo, p.20.
7

1.7.

The dispositive portion of the decision dated November 25,

1994:
WHEREFORE, judgment is rendered ordering defendant Eddie
C. Olalia to pay plaintiff the sum of Thirteen Thousand Eight
Hundred Eighty-Three Pesos and Twenty-seven Centavos (P13,
883.27), Philippine Currency with interest thereon at the legal
rate from June 18, 1991, until fully paid; and to pay the costs.
SO ORDERED.5

1.8.

The dispositive portion of the Order granting the Motion for

Reconsideration dated April 28, 1995:
Defendant Eddie C. Olalia has not filed any reaction paper up
to

the

present

relative

to

plaintiffs

MOTION

FOR

RECONSIDERATION dated December 20, 1994.

Finding the allegations in said motion to be meritorious, the
same is hereby granted.
WHEREFORE, the dispositive portion of the decision dated
November

25,

1994,

is

reconsidered

and

accordingly

amended/corrected to read as follows:

WHEREFORE, judgment is rendered ordering defendant Eddie
C. Olalia to pay plaintiff the sum of One Hundred Thirty Six
Thousand Two Hundred Ninety Pesos and Ninety-seven
Centavos (P136, 290.97) Philippine Currency, as of October
27, 1991.
SO ORDERED.6

1.9.

Hence, this appeal.

II.

STATEMENT OF FACTS

5 Rollo, p.18.
6 Rollo, p.20
8

2.1.

Petitioner operates a credit card system under the name of

BPI Express Card Corporation (BECC) through which it extends
credit accommodations to its cardholders for the purchase of
goods and other services from member establishments of
petitioner to be reimbursed later on by the cardholder upon
proper billing.

2.2.

Respondent Eddie C. Olalia applied 7 for and was granted

membership and credit accommodation with BECC.

BECC

Card No. 020100-3-00-0281667 was issued in his name with a

credit limit of Five Thousand Pesos (P5, 000.00).
2.3.

In January 1991, Olalias card expired and a renewal card was

issued. BECC also issued Card No. 020100-2-01-0281667 in
the name of Cristina G. Olalia, respondents ex-wife.

This

second card was an extension of Olalias credit card. BECC

alleges that the extension card was delivered and received by
Olalia at the same time as the renewal card. However, Olalia
denies ever having applied for, much less receiving, the
extension card.

2.4.

As evidenced by charge slips presented and identified in

court, it was found that the extension card in the name of
Cristina G. Olalia was used for purchases made from March to
April 1991, particularly in the province of Iloilo and the City of
Bacolod.

Total unpaid charges from the use of this card

amounted to One Hundred One Thousand Eight Hundred

7 Records, at p.4.
9

Forty-Four Pesos and Fifty-Four Centavos (P101, 844.54)

Philippine Currency.

2.5.

BECC sent a demand letter to Olalia, to which the latter

denied liability saying that said purchases were not made
under his own credit card and that he did not apply for nor
receive the extension card in the name of his wife. He has
likewise not used or allowed anybody in his family to receive
or use the extension card. Moreover, his wife, from whom he
was already divorced, left for the States in 1986 and has since
resided there.

In addition, neither he nor Cristina was in

Bacolod or Iloilo at the time the questioned purchases were

made. She was dropped as defendant by the trial court, in an
Order dated September 29, 1995.8

2.6.

A case for collection was filed by BECC before the RTC but
Olalia only admits responsibility for the amount of Thirteen
Thousand Eight Hundred Eighty-Three Pesos and TwentySeven

Centavos

(P13,

883.27)

Philippine

Currency,

representing purchases made under his own credit card. After

trial on the merits, a decision was rendered as follows:
WHEREFORE,

judgment

is

rendered

ordering

defendant Eddie C. Olalia to pay plaintiff the sum of

Thirteen Thousand Eight Hundred Eighty-Three Pesos
and Twenty-seven Centavos (P13, 883.27) Philippine
Currency with interest thereon at the legal rate from
June 18, 1991, until fully paid; and to pay the costs.
8 Records, at p.38.
10

SO ORDERED.9
2.7.

From the aforesaid decision, a Motion for Reconsideration was

filed, alleging that Olalia should also be held liable for the
purchases arising from the use of the extension card since he
allegedly received the same, as evidenced by his signature
appearing in the Renewal Card Acknowledgement Receipt and
by the express provision of paragraph 2 of the terms and
conditions governing the use and issuance of a BPI Express
Card, making the cardholder and his extension jointly and
severally liable for all purchases and availments made
through the use of the card.10

2.8.

On April 28, 1995, the Motion for Reconsideration was granted

and an Order was issued, stating:
Defendant Eddie C. Olalia has not filed any reaction
paper up to the present relative to plaintiffs MOTION
FOR RECONSIDERATION dated December 20, 1994.
Finding

the

allegations

in

said

motion

to

be

meritorious, the same is hereby granted.

WHEREFORE, the dispositive portion of the decision
dated

November

25,

1994,

is

reconsidered

and

accordingly amended/corrected to read as follows:

WHEREFORE,

judgment

is

rendered

ordering

defendant Eddie C. Olalia to pay plaintiff the sum of

One Hundred Thirty Six Thousand Two Hundred Ninety
9 Rollo, p.18.
10 See paragraph 2, Terms and Conditions Governing the Issuance and Use of
BPI Express Credit Cards, available at www.bpicards.com/page/60.
11

Pesos and Ninety-Seven Centavos (P136, 290.97)

Philippine Currency, as of October 27, 1991. SO
ORDERED.11

III.
III.1

ISSUES

Whether or not the court committed an error for failing to

prove that the extension card in the name of Cristina G.
Olalia was validly issued and received by Eddie C. Olalia
when there was an evidence of his signature appearing in
the Renewal Card Acknowledgement Receipt and by the
express provision of paragraph 2 of the terms and
conditions governing the use and issuance of a BPI Express
Card, making the cardholder and his extension jointly and
severally liable for all purchases and availments made

III.2

through the use of the card.

Whether or not the court committed a mistake in rendering
a decision that Eddie C. Olalia is responsible for the
purchases made from the extension card thus ordering him
to pay the total amount of One Hundred Thirty-Six
Thousand Two Hundred Ninety Pesos and Ninety-Seven
Centavos (P136, 290.97) Philippine Currency.

IV.

ARGUMENT

A. The court failed to prove that the extension card in the name
of Cristina G. Olalia was validly issued and received by Eddie C.
Olalia.

11 Rollo, p.20.
12

4.1.

Under Paragraph No. 11 of the Terms and Conditions

Governing the Issuance and Use of the BPI Express Credit
Card, the following is stated (former Paragraph No. 10 of
the Terms and Conditions Governing the Issuance and Use
of the BPI Express Credit Card):

11. SUPPLEMENTARY CARDS Extension of the CARD

issued to the Cardholder may be given to the latters
spouse or children upon payment of the necessary
fee thereof, and the submission of an application for
the purpose; and the use of such CARD, as well as
the extensions, thereof, shall be governed by this
Agreement, and secured by the Surety Undertaking
hereto.

Any reference to the CARD issued to the

Cardholder hereafter shall also apply to extensions

and/or renewals. Should a CARD be issued to the
spouse/children
Cardholders

of

request,

Cardholder
the

Cardholder

upon
shall

the
be

responsible for all charges including all fees, interest

and other charges made through the CARD. In the
event

of

separation,

legal

or

otherwise,

the

Cardholder shall continue to be responsible for all

such charges to be made through the extension
CARD unless Cardholder request in writing that the
privileges of such extension Cardholder under this

13

Agreement be terminated provided all charges

incurred shall have been fully paid and satisfied.12

4.2.

In the above stipulation, it is clear that there are two

requirements before an extension/supplementary card is
issued. First, payment of the necessary fee, and second,
submission of an application for the purpose.

None of

these requirements were shown to have been complied

with by Olalia. The court found that in Olalias applications
for the original as well as the renewal card, he never
applied for an extension card in the name of his wife. BECC
also failed to show any receipt for any fee given in
payment for the purpose of securing an extension card.

4.3.

BECC alleged that Eddie C. Olalia received the extension

card in the name of his wife, by presenting the Renewal
Card Acknowledgement Receipt wherein appellant affixed
his signature. Such is not a sufficient proof that the
requirements for the issuance of the extension card have
been complied with, especially in the face of appellants
firm denial.

4.4.

Contracts of this nature are contracts of adhesion, socalled because their terms are prepared by only one party
while the other merely affixes his signature signifying his

12 See Paragraph No. 10, Terms and Conditions Governing the Issuance and
Use of BPI Express Credit Cards, available at www.bpicards.com/page/60.
14

adhesion thereto.13 Article 1377 of the Civil Code applies

with even greater force in contracts of adhesion. 14 As such,
their terms are construed strictly against the party who
drafted it.15 In this case, it was BECC who made the
foregoing stipulation, thus, they are now tasked to show
vigilance for its compliance.

4.5.

BECC failed to explain why a card was issued without

accomplishment of the requirements. Moreover, BECC did
not even secure the specimen signature of the purported
extension cardholder, such that it cannot now counter
Eddie C. Olalias contention that the signatures appearing
on the charge slips of the questioned transactions were not
that of his former wife, Cristina G. Olalia.

4.6.

Eddie C. Olalia did not indicate nor declare that he had a

spouse when he applied for a credit card with BECC.

In

fact, at the time the extension card was issued and

allegedly received by appellant, Cristina had long left the
Philippines.

B. The court committed mistake in rendering decision that

Eddie C. Olalia is responsible for the purchases made
13 Ermitao vs. Court of Appeals, G.R. No. 127246, 306 SCRA 218, 224
(1999).
14 Qua Chee Gan vs. La Union & Rock, Co., Inc. Co., Ltd., 98 Phil. 85; see also
page 726, Civil Code of the Philippines Annotated by Edgardo Paras (2012).
15 Palmares vs. Court of Appeals, G.R. No. 126490, 288 SCRA 422, 433
(1998).
15

from the extension card thus ordering him to pay the

total amount of One Hundred Thirty-Six Thousand Two
Hundred Ninety Pesos and Ninety-Seven Centavos (P136,
290.97) Philippine Currency.

4.7.

When the Motion for reconsideration filed by the appellee

was granted, the court then rendered a decision making
Eddie C. Olalia responsible for the purchases made on the
extension card. Appellant cannot be held responsible
because of the fact that BECC failed to establish that the
extension card in the name of Cristina G. Olalia was validly
issued and received by him. The time appellant applied
credit card with BECC in 1991, he and his wife Cristina
were already divorced. Also by the time the extension card,
which was under the name of Cristina G. Olalia, was issued
and allegedly received by the appellant, Cristina was no
longer in the Philippines. She left for States in the year
1986.

V.

PRAYER

WHEREFORE, the premises considered, Appellant respectfully pray

that this Honorable Court:

1. Annul the decision dated April 28, 1995 on granting the

Motion for Reconsideration filed by the appllee against
the appellant.

16

2. Appellant not be held liable for the purchases made

under the extension card irregularly issued by the
appellee and used for purchases made by an
unauthorized party whose actions the respondent
could not be liable.
3. Appellant should only be made liable of the purchases
made under his own credit card in the amount of
Thirteen Thousand Eight Hundred Eighty-Three Pesos
and Twenty-Seven Centavos (P13, 883. 27) Philippine
Currency, exclusive of interest and penalty thereon, if
any.

Appellant further prays for such other relief as may be just and
equitable in the premises.
Makati City, Manila, Philippines, this 14th day of December 2001.

VI.

APPENDIX

Copy of the appealed order of the Regional Trial Court, Branch 145,
Makati City, dated April 28, 1995 (Appendix A).

By Appellants Counsel:

Juan de la Cruz

PTR NO. 0016687/J AN 14, 2009/MAKATI CITY

IBP NO. 775414/J AN 12, 2009/MAKATI CITY
ROLL NO. 49518
MCLE COMPLIANCE NO.II-0015132 JAN 5, 2009
De La Cruz & ASSOCIATES LAW FIRM
Unit 301 Rose Building
Raffles Drive, Makati Avenue
Makati City, Philippines
Tel. No.: (032) 555-3799
Fax
: (032) 555-3855
17

E-mail : delacruzlawfirm@yahoo.com

EXPLANATION
Due to the shortage of messengerial services and lack of time this
Appellants Brief is being served to the other parties by registered mail
in accordance with Section 11, Rule 13 of the Revised Rules of Court.

COPY FURNISHED:
(2 COPIES)

MARIA E. REYES
Counsel for Appellee BPI Express Card Corporation
#12 Second Floor Lamp Building
Ernesto Street, Makati Avenue
Makati City, Philippines

18