Title
Cheng y Chu vs. People
Case
G.R. No. 174113
Decision Date
Jan 13, 2016
Cheng convicted of Estafa for failing to remit jewelry sale proceeds or return unsold items to Rodriguez, despite demands and dishonored checks.
A

Case Digest (G.R. No. 174113)

Facts:

  • Charges and courts involved
  • The case originated from three (3) separate Informations filed before the Regional Trial Court of Quezon City, Branch 226 (RTC), docketed as Criminal Case Nos. Q-98-75440, Q-98-75441, and Q-98-75442.
  • Each Information charged petitioner Paz Cheng y Chu (Cheng) with Estafa defined and penalized under Article 315 (1) (b) of the Revised Penal Code (RPC), with the Informations similarly worded but differing as to dates of commission, number of pieces of jewelry, and amounts involved.
  • Prosecution theory: jewelry delivery with obligation to sell and account or return
  • The prosecution alleged an agreement between private complainant Rowena Rodriguez (Rodriguez) and Cheng, under which Rodriguez would deliver pieces of jewelry to Cheng so Cheng could sell them on a commission basis.
  • After one month, Cheng was obliged to either:
    • remit the proceeds of the sold jewelry; or
    • return the unsold jewelry to Rodriguez.
  • Rodriguez delivered jewelry to Cheng on different dates and in different amounts:
    • July 12, 1997: P18,000.00
    • July 16, 1997: P36,000.00
    • August 12, 1997: P257,950.00
  • Upon delivery of the last batch of jewelry, Cheng issued a check worth P120,000.00:
    • as foil security for the first two deliveries; and
    • as partial security for the last delivery.
  • When Cheng failed to remit proceeds or return unsold jewelry on due date, Rodriguez presented the check for encashment and it was dishonored twice:
    • dishonored for insufficient funds; and
    • upon re-deposit, dishonored because the drawee account had been closed.
  • After Cheng assured Rodriguez and Rodriguez re-deposited the check, the second dishonor occurred on account of a closed account.
  • Rodriguez then confronted Cheng, who uttered: “Akala mo, babayaran pa kita?
  • As a result, Rodriguez filed the estafa charges.
  • Defense theory: denial of receiving jewelry and denial of commission- sale contracts; allegation of usury loan relationship
  • Cheng denied receiving any jewelry from Rodriguez or signing any document purporting to be contracts of sale of jewelry.
  • Cheng claimed Rodriguez was a usurious moneylender and asserted that Rodriguez had lent money to her for a vegetable business under what was allegedly known as “5-6.”
  • Cheng admitted:
    • she had an unpaid loan with Rodriguez; and
    • she issued a check as security for the loan.
  • Cheng stated she was surprised by her arrest and learned only at the Quezon City Jail that Rodriguez had filed estafa cases.
  • RTC ruling: conviction for three counts of estafa
  • In a Decision dated December 7, 2000, the RTC found Cheng guilty beyond reasonable doubt of three (3) counts of estafa.
  • The RTC imposed separate indeterminate penalties per count:
    • First count: indeterminate penalty ranging from four (4) years, two (2) months, and one (1) day to six (6) years, eight (8) months, and twenty-one (21) days of prision correccional in its maximum period to prision mayor in its minimum period (maximum).
    • Second count: indeterminate penalty ranging from six (6) months and one (1) day to one (1) year, eight (8) months, and twenty (20) days of prision correccional in its minimum and medium periods to six (6) years, eight (8) months, and twenty-one (21) days to eight (8) years of prision correccional in its maximum period to prision mayor in its minimum period (maximum).
    • Third count: indeterminate penalty ranging from six (6) months and one (1) day to one (1) year, eight (8) months, and twenty (20) days of prision correccional in its minimum and medium periods to four (4) years, two (2) months, and one (1) day to five (5) years, five (5) months, and ten (10) days of prision correccional in its maximum period to prision mayor in its minimum period (minimum).
  • The RTC held the prosecution proved through documentary and testimonial evidence that:
    • Rodriguez gave Cheng jewelry for Cheng to either sell and remit proceeds or return unsold jewelry; and
    • Cheng neither returned the jewelry nor remitted proceeds within the specified period despite demands.
  • The RTC found Cheng failed to substantiate her claims with documentary evidence and treated her testimony as incredible and unworthy of belief.
  • The RTC ordered that the sentence be served successively and directed indemnification and payment of costs:
    • indemnify Rodriguez in the amounts of P257,950.00, P36,000.00, and P18,000.00; and
    • pay the costs of the suit.
    ...(Subscriber-Only)

Issues:

  • Criminal liability
  • Whether the CA correctly affirmed Cheng’s conviction for three counts of Estafa under Article 315 (1) (b) of the RPC.
  • Elements and characterization of the transaction
  • Whether the elements of estafa defined and penalized under Article 315 (1) (b) were proven beyond reasonable doubt, specifically:
    • whether Cheng received the jewelry in trust or under an obligation involving the duty to deliver or return; and
    • whether Cheng committed misappropriation or conversion, or denial of receipt, to the prejudice of Rodriguez; and
    • whether demand for return was shown.
  • Whether the transactions were properly characterized as an agency on commission basis requiring return/remittance upon default, rather than a sale giving rise only to civil liability.
  • Credibility and evidentiary suff...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

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