Title
Hayco vs. Court of Appeals
Case
G.R. No. L-49607-13
Decision Date
Aug 26, 1985
Petitioner misappropriated company funds, depositing P139,000 into personal accounts. Convicted of estafa, claims of double jeopardy and prejudicial question rejected. Supreme Court affirmed convictions.
A

Case Digest (G.R. No. L-49607-13)

Facts:

The petitioner, Benjamin Lu Hayco, was granted a special power of attorney on October 17, 1972 by Lu Chiong Sun—owner of the Units Optical Supply Company—to manage the company’s affairs, including handling its funds. Instead of depositing monies received from customers into the company’s banks, from October to December 1972 he deposited these amounts into his own personal accounts at the Equitable Banking Corporation and the Associated Banking Corporation. Soon after, the company’s owners sent him letters demanding an accounting. When he failed to comply, a criminal complaint for estafa through the alleged falsification of a public document was filed (Criminal Case No. 14968). That case, however, ended in dismissal and his subsequent acquittal.

Later, separate criminal charges were filed against him for a total of seventy-five counts of estafa related to his alleged act of converting funds (by depositing customers’ payments in his own personal accounts and withdrawing them for his personal use) on different dates than those involved in the earlier incident. These charges were consolidated into several criminal cases in different branches of the Court of First Instance of Manila, which resulted in convictions with varied penalties and orders to indemnify the complainants. The petitioner appealed these convictions to the Court of Appeals, which affirmed most of the decisions—with modifications in penalties in some instances. He further challenged the constitutional validity of the convictions by raising issues of double jeopardy, alleging that the subsequent proceedings involved essentially the same act as the already-dismissed case, and contended that the pending civil case for accounting should bar the criminal prosecution.

Issues:

  • Whether the petitioner’s conviction for the subsequent counts of estafa constitutes double jeopardy given that he was previously acquitted in Criminal Case No. 14968 for a similar act.
  • Whether the pending civil action for accounting and recovery of funds constitutes a prejudicial question that should have, or could have, precluded the criminal prosecution.
  • Whether depositing the company funds into his personal accounts, thereby depriving the owners of control over such funds, legally amounts to conversion or misappropriation constituting estafa under Article 315(1-b) of the Revised Penal Code.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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