By: Von Derek B. Santoninio
FACTS OF THE CASE
This case stemmed from a criminal complaint for violation or Batas Pambansa Blg. 22 (BP 22) filed by petitioner Nissan Gallery-Ortigas Nissan), an entity engaged in the business or car dealership, against respondent Purificacion F. Felipe (Purificacion) with the Office of the City Prosecutor of Quezon City. The said office found probable cause to indict Purificacion and filed an Information before the Metropolitan Trial Court, (raffled to Branch 41), Quezon City (MeTC), for her issuance of a postdated check in the amount of ₱1,020,000.00, which was subsequently dishonored upon presentment due to "STOP PAYMENT." Purificacion issued the said check because her son, Frederick Felipe (Frederick), attracted by a huge discount of ₱220,000.00, purchased a Nissan Terrano 4x4 sports and utility vehicle (SUV) from Nissan. The term of the transaction was Cash-on-Delivery and no downpayment was required. The SUV was delivered on May 14, 1997, but Frederick failed to pay upon delivery. Despite non-payment, Frederick took possession of the vehicle.
Since then, Frederick had used and enjoyed the SUV for more than four (4) months without paying even a single centavo of the purchase price. This constrained Nissan to send him two (2) demand letters, on different dates, but he still refused to pay. Nissan, through its retained counsel, was prompted to send a final demand letter. Reacting to the final demand, Frederick went to Nissan's office and asked for a grace period until October 30, 1997 within which to pay his full outstanding obligation amounting to ₱1,026,750.00. Through further negotiation, the amount was eventually reduced to ₱1,020,000.00. Frederick reneged on his promise and again failed to pay. On November 25, 1997, he asked his mother, Purificacion, to issue the subject check as payment for his obligation. Purificacion acceded to his request. Frederick then tendered her postdated check in the amount of ₱1,020,000.00. The check, however, was dishonored upon presentment due to "STOP PAYMENT." A demand letter was served upon Purificacion, through Frederick, who lived with her. The letter informed her of the dishonor of the check and gave her five (5) days from receipt within which to replace it with cash or manager's check. Despite receipt of the demand letter, Purificacion refused to replace the check giving the reason that she was not the one who purchased the vehicle. On January 6, 1998, Nissan filed a criminal case for violation of BP 22 against her.
ISSUE:
Whether or not the acquittal of Purification of the criminal case for violation of BP 22, absolves her of the civil liability filed with the criminal case.
RULING:
No, the Court shall not be belabored with the issue of whether or not Purificacion was an accommodation party because she was not. Granting that she was, it is with more reason that she cannot escape any civil liability because Section 2924 of the Negotiable Instruments Law specifically bounds her to the instrument. The crux of the controversy pertains to the civil liability of an accused despite acquittal of a criminal charge. Such issue is no longer novel. In cases like violation of BP 22, a special law, the intent in issuing a check is immaterial. The law has made the mere act of issuing a bad check malum prohibitum, an act prescribed by the legislature for being deemed pernicious and inimical to public welfare. Considering the rule in mala prohibita cases, the only inquiry is whether the law has been breached.25 The lower courts were unanimous in finding that, indeed. Purificacion issued the bouncing check. Thus, regardless of her intent, she remains civilly liable because the act or omission, the making and issuing of the subject check, from which her civil liability arises, evidently exists.
The essential elements of the offense of violation of BP 22 are the following: (1) The making, drawing, and issuance of any check to apply for account or for value; (2) The knowledge of the maker, drawer, or issuer that at the time of issue there were no sufficient funds in or credit with the drawee bank for the payment of such check in full upon its presentment; and (3) The dishonor of the check by the drawee bank for insufficiency of funds or credit or the dishonor for the same reason had not the drawer, without any valid cause, ordered the drawee bank to stop payment. Here, the first and third elements were duly proven in the trial. Purificacion, however, was acquitted from criminal liability because of the failure of the prosecution to prove the fact of notice of dishonor. Of the three (3) elements, the second element is the hardest to prove as it involves a state of mind.21 Thus, Section 2 of BP 22 creates a presumption of knowledge of insufficiency of funds which, however, arises only after it is proved that the issuer had received a written notice of dishonor and that within five (5) days from receipt thereof, he failed to pay the amount of the check or to make arrangements for its payment.
Purificacion was acquitted because the element of notice of dishonor was not sufficiently established.Nevertheless, the act or omission from which her civil liability arose, which was the making or the issuing of the subject worthless check, clearly existed. Her acquittal from the criminal charge of BP 22 was based on reasonable doubt and it did not relieve her of the corresponding civil liability. The Court cannot agree more when the MeTC ruled that: A person acquitted of a criminal charge, however, is not necessarily civilly free because the quantum of proof required in criminal prosecution (proof beyond reasonable doubt) is greater than that required for civil liability (mere preponderance of evidence). In order to be completely free from civil liability, a person's acquittal must be based on the fact he did not commit the offense. If the acquittal is based merely on reasonable doubt, the accused may still be held civilly liable since this does not mean he did not commit the act complained of. It may only be that the facts proved did not constitute the offense charged. The Court is also one with the CA when it stated that the liability of Purificacion was limited to her act of issuing a worthless check. The Court, however, does not agree with the CA when it went to state further that by her acquittal in the criminal charge, there was no more basis for her to be held civilly liable to Nissan. The acquittal was just based on reasonable doubt and it did not change the fact that she issued the subject check which was subsequently dishonored upon its presentment.
Purificacion herself admitted having issued the subject check in the amount of ₱1,020,000.00 after Frederick asked her to do it as payment for his obligation with Nissan. Her claim that she issued the check as a mere "show check" to boost Frederick's credit standing was not convincing because there was no credit standing to boost as her son had already defaulted in his obligation to Nissan. Had it been issued prior to the sale of the vehicle, the "show check" claim could be given credence. It was not, however, the case here. It was clear that she assumed her son's obligation with Nissan and issued the check to pay it. The argument that it was a mere "show check" after her son was already in default its simply ludicrous.
