Title
Supreme Court
Mandagan vs. Jose M. Valero Corp.
Case
G.R. No. 215118
Decision Date
Jun 19, 2019
Mandagan acquitted of B.P. 22 charges due to lack of notice of dishonor; civil liability upheld. SC reversed CA, reinstating RTC’s acquittal.

Case Digest (G.R. No. 215118)
Expanded Legal Reasoning Model

Facts:

  • Accommodation and Lease-to-Own Arrangement
  • JMV Corporation (JMV) agreed to grant an accommodation to Maria Nympha Mandagan by allowing her to use its corporate name and account to secure a 2001 Kia Rio sedan under a lease-to-own agreement with BPI Leasing Corporation (BPI).
  • On July 11 and July 28, 2001, JMV paid down payment (₱87,922), guarantee deposit (₱3,078), initial rental (₱12,796) and notarial fee (₱200). Mandagan took possession upon issuing 34 post-dated checks of ₱12,796 each. Ownership would transfer to her after full payment.
  • Dishonored Checks and Demand for Payment
  • Fourteen checks were honored; eleven were dishonored for insufficient funds or closed account. BPI informed JMV’s Treasury Head, who immediately notified Mandagan and demanded payment.
  • JMV’s personnel, including its General Account Supervisor, repeatedly reminded Mandagan. On June 30, 2003, JMV’s counsel sent a written demand (June 20, 2003) for the 11 dishonored checks plus depreciation (₱119,434.67) or return of the vehicle, giving Mandagan five days to comply. She did not.
  • Criminal Proceedings and Prior Decisions
  • The Manila City Prosecutor found probable cause for eight counts of violation of B.P. 22 and filed informations; three checks were not charged.
  • Metropolitan Trial Court (MTC), Branch 4, Manila (Dec. 28, 2009): convicted Mandagan of eight counts of B.P. 22; imposed fines, subsidiary imprisonment, and civil damages (₱102,368 plus 12% interest).
  • Regional Trial Court (RTC), Branch 10, Manila (Feb. 15, 2011): reversed MTC, acquitted Mandagan criminally for reasonable doubt, but retained civil liability (₱102,368 plus 12% interest from filing until fully paid).
  • Court of Appeals (CA) via Rule 65 certiorari (June 16, 2014; Resolution Oct. 29, 2014): annulled RTC decision, reinstated MTC conviction and sentence.

Issues:

  • Whether the CA committed reversible error in annulling the RTC’s acquittal by certiorari under Rule 65.
  • Whether the CA correctly found that the RTC acted with grave abuse of discretion warranting removal of the acquittal.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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