FACTS:
F.F. Cruz & Co., Inc. (FFCCI) opened savings/current and dollar savings accounts with the Philippine National Bank (PNB) at its Timog Avenue Branch. While FFCCI's President and Secretary-Treasurer were out of the country, applications for cashier's and manager's checks bearing the President's signature were presented to and approved by PNB. The amounts of these checks were then debited by PNB against FFCCI's account. When FFCCI discovered the deductions upon their return, they claimed that these were unauthorized and fraudulently made, and requested PNB to credit back and restore the value of the checks. PNB refused, prompting FFCCI to file a suit for damages against PNB and its own accountant. The trial court ruled that both FFCCI and PNB were negligent, but the larger proportion of the loss should be borne by PNB. The Court of Appeals affirmed with modification, allocating damages on a 60-40 ratio with the bigger share to be borne by PNB. Both FFCCI and PNB sought review before the Supreme Court. The issue before the Court is whether the Court of Appeals erred in finding PNB guilty of negligence.