Case Digest (G.R. No. 166884)
Facts:
- The case involves Land Bank of the Philippines (LBP) as the petitioner and Lamberto C. Perez, Nestor C. Kun, Ma. Estelita P. Angeles-Panlilio, and Napoleon O. Garcia as respondents, who are officers of Asian Construction and Development Corporation (ACDC).
- On June 7, 1999, LBP filed a criminal complaint for estafa against the respondents at the City Prosecutor's Office in Makati City.
- The complaint alleged violations of Article 315, paragraph 1(b) of the Revised Penal Code and Section 13 of Presidential Decree No. 115 (Trust Receipts Law).
- LBP had extended credit to ACDC through an Omnibus Credit Line Agreement on October 29, 1996, allowing ACDC to purchase construction materials using Letters of Credit/Trust Receipts.
- ACDC executed trust receipts for a total principal amount of P52,344,096.32 but failed to return the proceeds or materials upon maturity.
- LBP sent a demand letter on May 4, 1999, for payment of P66,425,924.39, which ACDC did not comply with.
- The respondents argued that the trust receipts lacked essential details and were signed simultaneously with the loan documents, violating the Trust Receipts Law.
- The Assistant City Prosecutor dismissed the complaint on September 30, 1999, due to insufficient evidence, but the Secretary of Justice later reversed this dismissal.
- The Court of Appeals ruled in favor of the respondents, stating the transactions were merely a loan, not trust receipts.
Issue:
- (Unlock)
Ruling:
- The Supreme Court denied the petition for review and affirmed the Court of Appeals' decision, concluding that the transactions were loans, not trust receipts.
- Consequently, ...(Unlock)
Ratio:
- The Supreme Court determined that the transactions did not fulfill the legal definition of a trust receipt transaction as per Section 4 of P.D. 115.
- A trust receipt transaction requires the entruster to release goods to the entrustee upon execution of a signed trust receipt, obligating the entrustee to return the goods or their sale proceeds.
- The Court found that both parties understood ACDC could not return the construction materials once used, indic...continue reading
Case Digest (G.R. No. 166884)
Facts:
The case involves the petitioner, Land Bank of the Philippines (LBP), and the respondents, Lamberto C. Perez, Nestor C. Kun, Ma. Estelita P. Angeles-Panlilio, and Napoleon O. Garcia, who are officers of the Asian Construction and Development Corporation (ACDC). The events leading to the case began on June 7, 1999, when LBP filed a criminal complaint for estafa against the respondents before the City Prosecutor's Office in Makati City. The complaint alleged that the respondents violated Article 315, paragraph 1(b) of the Revised Penal Code, in relation to Section 13 of Presidential Decree No. 115, also known as the Trust Receipts Law. LBP, a government financial institution, had extended credit to ACDC through an Omnibus Credit Line Agreement executed on October 29, 1996. ACDC utilized the Letters of Credit/Trust Receipts Facility to purchase construction materials, executing trust receipts for a total principal amount of P52,344,096.32. However, ACDC failed to return the proceeds from the construction projects or the materials covered by the trust receipts upon their maturity. LBP sent a demand letter on May 4, 1999, for payment of debts amounting to P66,425,924.39, but ACDC did not comply. The respondents contended that they signed the trust receipts at the same time as the loan documents and argued that the trust receipts lacked essential details, such as descriptions of the goods and their maturity dates, violating the Trust Receipts Law. The Assistant City Prosecutor dismis...