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THIRD DIVISION G.R. No. 173905 April 23, 2010 ANTHONY L. NG, Petitioner, vs. PEOPLE OF THE PHILIPPINES, Respondent. DECISION VELASCO, JR.
since the information clearly set forth the essential elements of the crime charged. IT IS SO ORDERED. the RTC. the trial court declared that petitioner. The petitioner is further ordered to return to the Asiatrust Development Bank Inc. the trial court held that petitioner could not simply argue that the contracts he had entered into with Asiatrust were void as they were contracts of adhesion. the CA rendered a Decision affirming that of the RTC. . his contract worth PhP 18. According to the CA. Asiatrust did not violate Republic Act No. (3) in not considering the material facts which if taken into account would have resulted in his acquittal. being the entrustee stated in the Trust Receipts issued by Asiatrust. The decision of the Regional Trial Court of Quezon City. rendered a Decision. Finally. Nine Hundred Seventy One and Six Hundred Fifty Pesos (P2. as the maximum penalty. but Asiatrust was aware of petitioner’s receivables which were more than sufficient to cover the obligation as shown in the various Project Listings with Islacom. 549002. hostile.corresponding to Letter of Credit No.1999 until the amount is fully paid. 1963 and the Trust Receipt Agreement corresponding to Letter of Credit No. and 594986. (3) unfortunately for petitioner. 577198. Ng GUILTY beyond reasonable doubt for the crime of Estafa defined in and penalized by Article 315. the amount of Two Million. otherwise. judgment is hereby rendered finding the petitioner. (2) in making a finding of facts not in accord with that actually proved in the trial and/or by the evidence provided. he had been faithfully paying his obligation to Asiatrust as shown in Official Receipt Nos. bound by the provisions of the Letters of Credit and Trust Receipts. 549001. Since petitioner transacted with the same employees for the issuance of the subject Trust Receipts. the instant appeal is DENIED. 2001. minimum.971 million he owed as per Statement of Account dated January 26. 2000. 565558. 2002. Ruling of the Trial Court After trial on the merits. is thus obliged to hold the goods in trust for the entruster and shall dispose of them strictly in accordance with the terms and conditions of the trust receipts.1avvphi1 On August 29. 577199.00) with legal rate of interest computed from the filing of the information on September 21. and prejudiced against him. and is hereby sentenced to suffer the indeterminate penalty of from six (6) years. and the constitutional right of petitioner to be informed of the nature and cause of his accusations is not violated. thus. (4) in being biased. Anthony L. 1964 were both contracts of adhesion. and (6) he had already paid PhP 1. In rendering its Decision. and (5) in considering the prosecution’s evidence which did not prove the guilt of petitioner beyond reasonable doubt. finding petitioner guilty of the crime of Estafa. paragraph 1(b) of the Revised Penal Code in relation to Section 3 of Presidential Decree 115. The CA further stated that the change in the name of the complainant will not prejudice and alter the fact that petitioner was being charged with the crime of Estafa in relation to the Trust Receipts Law. 2003. the mere failure to deliver the proceeds of the sale or the goods if not sold constitutes the criminal offense. SO ORDERED. therefore. It reasoned that petitioner is presumed to have read and understood and is. Smart Communications. the foregoing considered. The CA held that during the course of the trial.000. the fallo of which reads: WHEREFORE. Ruling of the Appellate Court Petitioner then elevated the case to the CA by filing a Notice of Appeal on August 6. the CA stated that it was undisputed that petitioner entered into a trust receipt agreement with Asiatrust and he failed to pay the bank his obligation when it became due. which he failed to pay along with the computation of other fees and charges.8 million out of the PhP 2. he evidently violated the Trust Receipts Law. failing thus. The fallo of the Decision reads as follows: WHEREFORE.000 with Islacom was not yet paid since there was a squabble as to the real ownership of the latter’s company.650. 6 thus debunking Asiatrust’s claim of fraud and bad faith against him. In his Appellant’s Brief dated March 25. (4) prior to the Islacom problem. eight (8) months. he cannot feign ignorance that Asiatrust is not the offended party in the instant case. as the minimum penalty. he is obliged to return the goods in the event of non-sale or upon demand of the entruster. and twenty one (21) days of prision mayor. petitioner argued that the court a quo erred: (1) in changing the name of the offended party without the benefit of an amendment of the Information which violates his right to be informed of the nature and cause of accusation against him. petitioner knew that the complainant Bernardez and the other co-witnesses are all employees of Asiatrust and that she is suing in behalf of the bank.8 As to the alleged error in the appreciation of facts by the trial court. since the offense is punished as malum prohibitum regardless of the existence of intent or malice. on May 29. to twenty (20) years of reclusion temporal maximum. (5) during the pendency of this case. 2001. otherwise known as the Trust Receipts Law. and Infocom. Branch 95 dated May 29. It said that it was clear that Asiatrust had furnished petitioner with a Statement of Account enumerating therein the precise figures of the outstanding balance.971. petitioner even attempted to settle his obligations as evidenced by the two United Coconut Planters Bank Checks7 he issued in favor of Asiatrust. since the stipulations found in the documents were prepared by Asiatrust in fine print. the fact that petitioner acted without malice or fraud in entering into the transactions has no bearing. 2001 is AFFIRMED. 3765 (Truth in Lending Act).
or under any other obligation involving the duty to make delivery of or to return the same. . the issues raised by petitioner can be summed up into one—whether or not petitioner is liable for Estafa under Art. such as: (1) when the conclusion is a finding grounded entirely on speculations. What constitutes a trust receipts transaction. documents or instruments in trust for the entruster and to sell or otherwise dispose of the goods. In the case at bar. documents or instruments themselves if they are unsold or not otherwise disposed of. the entruster shall retain its title over the goods whether in its original or processed form until the entrustee has complied full with his obligation under the trust receipt. goods or other personal property is received by the offender in trust or on commission. goods. 2006.—Any person who shall defraud another by any of the means mentioned hereinbelow x x x 1. and (4) there is demand by the offended party to the offender. x x x b. (3) there is grave abuse of discretion. By misappropriating or converting. the rule is not without exceptions. petitioner moved for its reconsideration.—A trust receipt transaction. (3) that such misappropriation or conversion or denial is to the prejudice of another. That.12 Likewise. 3. The RPC defines Estafa as: ART. 1(b) of the RPC in relation to PD 115. (2) the inferences made are manifestly mistaken. or any other personal property received by the offender in trust or on commission. the CA stated that the mere query as to the whereabouts of the goods and/or money is tantamount to a demand. releases the same to the possession of the entrustee upon the latter’s execution and delivery to the entruster of a signed document called a "trust receipt" wherein the entrustee binds himself to hold the designated goods. namely: a. or (b) to manufacture or process the goods with the purpose of ultimate sale: Provided.10 Especially in criminal cases where the accused stands to lose his liberty by virtue of his conviction. he raised the following issues: Issues: 1. or denial on his part of such receipt. petitioner was charged with Estafa under Art. 315. the Court must be satisfied that the factual findings and conclusions of the lower courts leading to his conviction must satisfy the standard of proof beyond reasonable doubt. The state was unable to prove the 3rd essential element of the crime that the alleged misappropriation or conversion is to the prejudice of the real offended property. par. 1(b) of the RPC in relation to PD 115. the CA said that petitioner failed to present any substantial proof to support the aforementioned allegations against the RTC. whereby the entruster. is any transaction by and between a person referred to in this Decree as the entruster. 2. and conjectures. The absence of a demand (4th essential element) on petitioner necessarily results to the dismissal of the criminal case. and (4) the judgment is based on misapprehension of facts or premised on the absence of evidence on record. the essential elements of Estafa are: (1) that money. or by denying having received such money. more so when they are affirmed by the appellate court. 315. and another person referred to in this Decree as entrustee. goods. 315. or under any obligation involving the duty to make delivery of or to return it. With unfaithfulness or abuse of confidence. par. or for administration.With regard to the failure of the RTC to consider the fact that petitioner’s outstanding receivables are sufficient to cover his indebtedness and that no written demand was made upon him hence his obligation has not yet become due and demandable. who owns or holds absolute title or security interests over certain specified goods. in accordance with the terms and conditions specified in the trust receipt. documents or instruments. surmises. to the prejudice of another. within the meaning of this Decree. (2) that there be misappropriation or conversion of such money or property by the offender. Estafa can also be committed in what is called a "trust receipt transaction" under PD 115. and prejudice of the RTC against petitioner. even though such obligation be totally or partially guaranteed by a bond. The prosecution failed to adduce evidence beyond a reasonable doubt to satisfy the 2nd essential element that there was misappropriation or conversion of subject money or property by petitioner. which is defined as: Section 4. However. After the receipt of the CA Decision. 11 Based on the definition above. Thereafter. Essentially. 9 Concerning the alleged bias. The Court’s Ruling We find the petition to be meritorious. Swindling (estafa). or for other purposes substantially equivalent to any of the following: 1. or other property x x x. In the case of goods or documents: (a) to sell the goods or procure their sale. money. documents or instruments with the obligation to turn over to the entruster the proceeds thereof to the extent of the amount owing to the entruster or as appears in the trust receipt or the goods. petitioner filed this Petition for Review on Certiorari. In his Memorandum. or for administration. in the case of goods delivered under trust receipt for the purpose of manufacturing or processing before its ultimate sale. which was denied by the CA in its Resolution dated July 25. hostility. It is a well-recognized principle that factual findings of the trial court are entitled to great weight and respect by this Court.
paragraph one (b) of Act Numbered Three thousand eight hundred and fifteen." Obviously. ship or transship or otherwise deal with them in a manner preliminary or necessary to their sale. 315. sought to find a way to assist importers and merchants in their financing in order to encourage commerce in the Philippines. not to sell them. at the outset of transaction. The sale of good.13 A violation of any of these undertakings constitutes Estafa defined under Art. American Jurisprudence demonstrates that trust receipt transactions always refer to a method of "financing importations or financing sales. does not constitute a trust receipt transaction and is outside the purview and coverage of this Decree. the trial court relied on the Memorandum of Asiatrust’s appraiser. has. therefore. viz: COURT (to the witness) Q So. two obligations in a trust receipt transaction: the first refers to money received under the obligation involving the duty to turn it over (entregarla) to the owner of the merchandise sold.14 a trust receipt is considered a security transaction intended to aid in financing importers and retail dealers who do not have sufficient funds or resources to finance the importation or purchase of merchandise. as against the buyer. In the case of instruments: (a) to sell or procure their sale or exchange. the trial court erred in ruling that the agreement is a trust receipt transaction. unload. or who sells the same to the buyer on credit. in other words. Following the precept of the law. while the second refers to the merchandise received under the obligation to "return" it (devolvera) to the owner. As stressed in Samo v. as provided in Sec. You presumed that. The true nature of a trust receipt transaction can be found in the "whereas" clause of PD 115 which states that a trust receipt is to be utilized "as a convenient business device to assist importers and merchants solve their financing problems. or (c) to effect the consummation of some transactions involving delivery to a depository or register. and Infocom. documents or instruments for profit who. . to return the merchandise to the entruster. who owns or holds absolute title or security interests over specified goods. as amended. In other words. In these contracts. reveals that the transaction between petitioner and Asiatrust is not a trust receipt transaction but one of simple loan. the latter did not give weight to the testimony of Linga when he testified that he merely presumed that the goods were sold. There are. such transactions affect situations wherein the entruster. however. or 2. general property rights in such goods. of the merchandise imported or purchased. that is already sold? A Yes. or if the merchandise is not sold. et al. documents or instruments in trust for the entruster and to sell or otherwise dispose of the goods. or (b) to deliver them to a principal. we held in State Investment House v. or (d) to effect their presentation. documents or instruments. in enacting the law. since the principle is equally applicable to domestic transactions. documents or instruments. x x x (Emphasis supplied. Similarly. who stated that the goods have been sold by petitioner and that only 3% of the goods remained in the warehouse where it was previously stored. People. 13 of PD 115. 1(b) of the RPC. releases the subject goods to the possession of the entrustee." 17 Considering that the goods in this case were never intended for sale but for use in the fabrication of steel communication towers. and who may not be able to acquire credit except through utilization. a trust receipt transaction is one where the entrustee has the obligation to deliver to the entruster the price of the sale. retaining title or other interest as security for the payment of the purchase price. Similarly. it is important to note that the transactions discussed in relation to trust receipts mainly involved sales. The release of such goods to the entrustee is conditioned upon his execution and delivery to the entruster of a trust receipt wherein the former binds himself to hold the specific goods. documents or instruments covered by a trust receipt to the extent of the amount owing to the entruster or as appears in the trust receipt or to return said goods. collection or renewal.—The failure of an entrustee to turn over the proceeds of the sale of the goods.or (c) to load. par. PD 115 Does Not Apply It must be remembered that petitioner was transparent to Asiatrust from the very beginning that the subject goods were not being held for sale but were to be used for the fabrication of steel communication towers in accordance with his contracts with Islacom. that the entruster is entitled "only to the proceeds derived from the sale of goods released under a trust receipt to the entrustee. documents or instruments if they were not sold or disposed of in accordance with the terms of the trust receipt shall constitute the crime of estafa.16 Regardless of whether the transaction is foreign or domestic. punishable under the provisions of Article Three hundred fifteen. In applying the provisions of PD 115. But for reasons known only to the trial court. documents or instruments with the obligation to turn over to the entruster the proceeds to the extent of the amount owing to the entruster or the goods. Linga. steel communication towers. he was commissioned to build. otherwise known as the Revised Penal Code. Smart. documents or instruments themselves if they are unsold.) A thorough examination of the facts obtaining in the instant case. as collateral. your Honor. viz: Section 13. documents or instruments by a person in the business of selling goods. Penalty Clause. out of the materials received. the State."15 The principle is of course not limited in its application to financing importations. CA. when the goods were not there anymore.
in his testimony." The trust receipt entered into between Asiatrust and petitioner states: In case of sale I/we agree to hand the proceeds as soon as received to the BANK to apply against the relative acceptance (as described above) and for the payment of any other indebtedness of mine/ours to ASIATRUST DEVELOPMENT BANK. and who may not be able to acquire credit except through utilization. that is. of the merchandise imported or purchased.Undoubtedly. No Misappropriation of Goods or Proceeds The second element of Estafa requires that there be misappropriation or conversion of such money or property by the offender. no date of maturity was stipulated. or of devoting it to a purpose or use different from that agreed upon. What is more. Despite this fact. I/we hereby agree to hold said goods in Trust for the said Bank and as its property with liberty to sell the same for its account within ________ days from the date of execution of the Trust Receipt x x x 20 In fact. the Trust Receipts Law was created to "to aid in financing importers and retail dealers who do not have sufficient funds or resources to finance the importation or purchase of merchandise. The real intent of the parties was simply to enter into a simple loan agreement.500. since those dates are elemental part of the loan.19 (Emphasis supplied. as collateral. par. which was based only on his presumption and not any actual personal knowledge. it should have known that the said agreement could not possibly apply to petitioner. . because his liability for the amount of the goods subject of the trust receipts arises and becomes due only upon receipt of the proceeds of the sale and not prior to the receipt of the full price of the goods. But as we already discussed. Asiatrust also knew that the capacity of petitioner to pay for his loan also hinges upon the latter’s receivables from Islacom. or to return it. Asiatrust acted inappropriately when it left such a sensitive bank instrument with a void circumstance on an elementary but vital feature of each and every loan transaction. which payments during the period from September 1997 to July 1998 total approximately PhP 1. 1(b). Being a bank. petitioner endeavored to pay his indebtedness to Asiatrust. He did not notify petitioner about the inspection nor did he talk to or inquire with petitioner regarding the whereabouts of the subject goods. par. Smart. Thus. At the very least. it could only show that the goods were not in the warehouse. Moreover. but also every attempt to dispose of the property of another without a right. which it never did. Therefore. They were only intended for use in the fabrication of steel communication towers. this Court finds that petitioner is not liable for Estafa both under the RPC and PD 115.18 Petitioner argues that there was no misappropriation or conversion on his part. The words "convert" and "misappropriated" connote an act of using or disposing of another’s property as if it were one’s own. petitioner was only obligated to turn over the proceeds as soon as he received payment. an action which in ordinary banking transactions would be noted as highly irregular. the evidence reveals that petitioner experienced difficulties in collecting payments from his clients for the communication towers. 1(b) of the RPC requires that the money. goods or other personal property must be received by the offender in trust or on commission. Again. and Infocom where he had ongoing and future projects for fabrication and installation of steel communication towers and not from the sale of said goods. under the Trust Receipt Agreement itself. it also makes the Court wonder as to why Asiatrust decided to leave the provisions for the maturity dates in the Trust Receipt agreements in blank. or denial on his part of such receipt. Linga showed that he had no real personal knowledge or proof of the fact that the goods were indeed sold. petitioner is not liable for Estafa because Sec. Asiatrust purposely left the space designated for the date blank. Hence. Neither did he confirm with petitioner if the subject goods were in fact sold.000. 315. should not have been used by the trial court to prove that the goods have in fact been sold. 13 of PD 115 provides that an entrustee is only liable for Estafa when he fails "to turn over the proceeds of the sale of the goods x x x covered by a trust receipt to the extent of the amount owing to the entruster or as appears in the trust receipt x x x in accordance with the terms of the trust receipt. Goods Were Not Received in Trust The first element of Estafa under Art. Without stating the maturity dates. Petitioner is correct. They were also not intended for sale and neither did petitioner have the duty to return them. Thus." Since Asiatrust knew that petitioner was neither an importer nor retail dealer. To misappropriate for one’s own use includes not only conversion to one’s personal advantage. the goods received by petitioner were not held in trust.) Clearly. or under any other obligation involving the duty to make delivery of. the only way for the obligation to mature was for Asiatrust to demand from petitioner to pay the obligation. it was impossible for petitioner to determine when the loan will be due. 315. To emphasize. But then. this Court finds that petitioner’s liability is only limited to the satisfaction of his obligation from the loan. as can be gleaned from the records of this case. the maturity dates. However. his obligation to turn over the same to Asiatrust never arose. Having established the inapplicability of PD 115. or for administration. The provision left blank by Asiatrust is as follows: x x x and in consideration thereof. the Memorandum of Linga. absent proof that the proceeds have been actually and fully received by petitioner. This is the very essence of Estafa under Art. assuming arguendo that the provisions of PD 115 apply.
if not reprehensible. 2003 affirming the RTC Decision dated May 29.. People. Petitioner ANTHONY L. 5 SCRA 354. as aforementioned. 9 Barrameda v. G. Jr. L-17603-04. 622 (1981). Nachura. At this point. Thus. 110353. June 30. 1999. Esquivas. Bersamin (now member of the Court). 13 People v. 96428. 1(b) of the RPC in relation to the pertinent provision of PD 115 or the Trust Receipts Law. 1963 and 1964. then there is no longer any obligation on petitioner’s part to speak of. Petitioner informed Asiatrust that he was having extreme difficulties in collecting from Islacom the full contracted price of the towers. 127162. G. 10 Cosep v. 46.R. 3 Rollo. From the foregoing considerations. 2009. Asiatrust was aware that petitioner was not engaged in selling the subject goods and that petitioner will use them for the fabrication and installation of communication towers. No. 2005. Given that the acceptance of payment by Asiatrust necessarily extinguished petitioner’s obligation. 8 Abaca v. it. Mariano 22 that while the principle does not connote absolute certainty. 23 Such is the situation in this case. Thus. 2010. 315. Such agreements are contracts of adhesion which borrowers have no option but to sign lest their loan be disapproved. This is evidenced by Asiatrust’s Affidavit of Desistance 21 acknowledging full payment of the loan. 58 & 60. Peralta. we deem it unnecessary to discuss and rule upon the other issues raised in the appeal. 12 Salazar v. the prosecution failed to prove beyond reasonable doubt that petitioner was guilty of Estafa under Art. No. on March 30. No. the CA Decision dated August 29. thus. 149472. September 2." 7 Check Nos. par. 313 SCRA 477. 315.R. 5 Rollo. Asiatrust’s intention became more evident when. Asiatrust was informed at the time of petitioner’s application for the loan that the payment for the loan would be derived from the collectibles of his clients. 290 SCRA 657. 2 Penned by then Presiding Judge Diosdado Madarang Peralta (now member of the Court). To overcome the presumption. 141485. Islacom. attorney-in-fact of the Board of Asiatrust. Footnotes * Designated as additional member in lieu of Associate Justice Diosdado M.R. May 31. which acknowledged the full payment of the obligation of the petitioner and the successful mediation between the parties. Before granting petitioner the credit line. The resort to this scheme leaves poor and hapless borrowers at the mercy of banks. It is a well-established principle that person is presumed innocent until proved guilty. June 5. pp. along with petitioner.R. in this instant case. Asuncion and concurred in by Associate Justices Eugenio S. pp. 2001 is SET ASIDE. Penned by Associate Justice Elvi John S. 191 Phil. and is prone to misinterpretation x x x. respectively. 2000. 437 SCRA 41. This Court also takes judicial notice of the fact that petitioner has fully paid his obligation to Asiatrust. per raffle dated April 7. since petitioner did not withhold the fact that they were to be used to fabricate steel communication towers to Asiatrust. People. failed to rebut the constitutional innocence of petitioner and thus the latter should be acquitted. In fine. Again. he nevertheless does not have criminal liability. 1962. 2004. petitioner could not be said to have misappropriated or converted the proceeds of the transaction since he has not yet received the proceeds from his client. par. 61-69. No. G. Furthermore. 2010. 462 SCRA 366. Reasonable Doubt Exists In the final analysis. Designated as additional member in lieu of Associate Justice Antonio Eduardo B. Asiatrust conducted an investigation.R. it means the degree of proof which produces moral certainty in an unprejudiced mind of the culpability of the accused. Court of Appeals. Such proof should convince and satisfy the reason and conscience of those who are to act upon it that the accused is in fact guilty. G. his guilt must be shown by proof beyond reasonable doubt. which showed that petitioner fabricated and installed communication towers for well-known communication companies to be installed at designated project sites. 290 SCRA 378. there was no abuse of confidence to speak of nor was there any intention to convert the subject goods for another purpose. WHEREFORE. thus: The practice of banks of making borrowers sign trust receipts to facilitate collection of loans and place them under the threats of criminal prosecution should they be unable to pay it may be unjust and inequitable. 1998. August 18. The prosecution. May 21. 2000 and May 31. Cuevo. per raffle dated March 29. no malice or abuse of confidence and misappropriation occurred in this instance due to Asiatrust’s knowledge of the facts. 5094129 and 5094133 dated January 31. Labitoria and Lucas P. 4 Trust Receipt Agreements under Letter of Credit Nos. the ruling of this Court in Colinares v. the duty of petitioner to remit the proceeds of the goods has not yet arisen since he has yet to receive proceeds of the goods. People. NG is hereby ACQUITTED of the charge of violation of Art. No. thus precluding Asiatrust from claiming any damage. G. Hence. filed their Joint Motion for Leave to File and Admit Attached Affidavit of Desistance to qualify the Affidavit of Desistance executed by Felino H. his liability should only be civil in nature. While petitioner admits to his civil liability to Asiatrust. making the claim for damage and prejudice of Asiatrust baseless and unfounded.Moreover. we held in People v. 11 Murao v. 6 Exhibits "1" & "1-A. Court of Appeals. Court of Appeals is very apt. 1(b) of the RPC in relation to the pertinent provision of PD 115. ** 1 . 14 Nos. SO ORDERED. 1998.
335 SCRA 703. 339 SCRA 609. 20 Id. 548 SCRA 373. No.15 16 49 A. 23 G.R. 345 SCRA 1." March 26. G. No. July 14. 18 Luces v. 2000. Annex "A". 17 G. 150900.L. Damole. 2009. at 58. 2000. March 30. 90828. Corporate Resolution No. 130365. 2008. No. 2009. September 5.R. 19 Rollo. 2009) —"Authorized signatory for the Affidavit of Desistance pertaining to the Settlement Agreement for the account of Anthony Ng/Capitol Blacksmith. March 14. November 17. 60. No. p. 4155 (s. . 282. Id. 2000. 22 G. 134309.R.R. 21 Joint Motion for Leave to File and Admit Attached Affidavit of Desistance.R.

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