4/7/2021 E-Library - Information At Your Fingertips: Printer Friendly x x the subject matter of the instant complaint are the subject drafts drawn by EPCIB, which is a Philippine bank."[51] G.R. No. 212216 SCPL's Petition is meritorious. The CA absolved EPCIB from any liability in this wise: Relative to EPCIB's solidary liability, We deem it proper to discharge it from any responsibility considering that it already paid Llorente the face value of the subject drafts amounting to US $300,000.00 as evidenced by the Quitclaim, Indemnity and Confidentiality Agreement executed on 8 August 2002. It would be very unfair to hold EPCIB solidarily liable with Llorente because it already paid/refunded to the latter the total amount of the subject drafts. Moreover, allowing such solidary liability would, indeed, be to sanction unjust enrichment on the part of Llorente, who will be allowed to profit or enrich himself inequitabl[y] at EPCIB's expense,[52] since he was already paid and yet, the latter, who was without any fault, is still bound to share the responsibility without any assurance of being paid. Hence, it is only just and equitable to relieve the bank from any liability to pay considering the execution of the above agreement in favor of Llorente.[53] In its Petition, SCPL posits that it is an established fact that EPCIB issued the subject demand drafts since it was never denied by EPCIB and was even confirmed by the bank's counsel in a letter dated September 16, 2002 to SCPL's counsel.[54] According to SCPL, in issuing the subject demand drafts, EPCIB is considered by law as the drawer and being the drawer, it represented that on due presentment the checks would be accepted or paid, or both, according to their tenor and if they be dishonored and the necessary proceedings be taken it would be the one who would pay pursuant to Section 61 of the Negotiable Instruments Law (NIL).[55] Additionally, SCPL argues that under the NIL, while the maker and the acceptor of the negotiable instrument are primarily liable, the drawer and endorser are secondarily liable; and the drawer's secondary liability to pay the amount of the checks arises from its warranties as the drawer.[56] Being a holder in due course, as the CA has recognized, SCPL may enforce payment of the instrument for its full amount against all parties liable thereon.[57] SCPL concludes that there is no room for the application of equity and unjust enrichment because the rights, liabilities and representations of the parties are explicitly provided in the NIL and equity, being invoked only in the absence of law, may supplement the law but it can neither contravene nor supplant it.[58] As to the Indemnity Agreement allegedly executed on August 8, 2002, SCPL further posits that the CA has no basis to give it weight as it was never presented as evidenc1 e on EPCIB's behalf and was never formally offered or identified by a proper witness in court.[59] Even assuming that the Indemnity Agreement can be used as evidence, SCPL takes the position that it is only valid between Llorente and EPCIB and cannot be https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/65911 9/22