Title
Lao vs. Court of Appeals
Case
G.R. No. 119178
Decision Date
Jun 20, 1997
Junior employee acquitted under B.P. 22 for signing blank checks without knowledge of insufficient funds or valid notice of dishonor.
A

Case Digest (G.R. No. 119178)

Facts:

  • Organizational Structure and Roles
    • Petitioner Lina Lim Lao was a junior officer at Premiere Investment House’s Binondo branch, authorized to co-sign corporate checks in blank (no payee, amount or date).
    • Teodulo Asprec, head of operations, co-signed, filled in blanks, decided payee/amount; funding and account monitoring were under the main office’s Treasury Department in Cubao, Quezon City.
  • Investment Transaction and Check Dishonor
    • Father Artelijo Palijo invested ₱514,484.04 with Premiere; received three interest-payment checks (Nos. 299961, 299962 for ₱150,000 each; No. 323835 for ₱26,010.73), all signed by Lao and Asprec.
    • Upon presentment, the checks were dishonored for “Insufficient Funds.” Palijo demanded payment, received ₱5,000, sent a formal demand letter; Premiere was subsequently placed under receivership.
    • Notice of dishonor was sent only to Premiere’s main office; Lao, stationed at Binondo, received no personal notice.
  • Procedural History
    • January 24, 1984: Affidavit-complaint filed; May 11, 1984: Informations under B.P. 22 filed against Lao and Asprec.
    • RTC (Branch 33, Manila): Convicted Lao in two cases (Nos. 84-26967, 84-26968), acquitted in one (No. 84-26969).
    • Court of Appeals: December 9, 1994 decision affirming RTC.
    • Supreme Court grant of petition; issues raised concerning knowledge of insufficiency and validity of notice.

Issues:

  • Can an employee who co-signs blank corporate checks—without actual knowledge of available funds—be criminally liable under B.P. 22 when the checks bounce?
  • Does notice of dishonor sent to the corporation’s main office suffice as notice to an employee signatory located in a separate branch for purposes of Section 2, B.P. 22?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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