Title
People vs. Galsim
Case
G.R. No. L-14577
Decision Date
Feb 29, 1960
Andres C. Galsim is convicted of estafa for misrepresenting a mortgaged property as unencumbered, resulting in financial harm to the victim.
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Case Digest (G.R. No. L-14577)

Facts:

  • The case involves The People of the Philippines vs. Andres C. Galsim, G.R. No. L-14577, decided on February 29, 1960.
  • Andres C. Galsim was charged and convicted of estafa by the Court of First Instance of Manila.
  • He was sentenced to two months and one day of arresto mayor, fined P2,500.00, ordered to indemnify the offended party the same amount, and mandated to serve subsidiary imprisonment in case of insolvency.
  • The case stemmed from a loan transaction on September 4, 1953, where Galsim borrowed P2,500.00 from Maura Magno, agreeing to repay within five years.
  • Galsim executed a deed of chattel mortgage on a two-story house in Manila, claiming it was free from liens or encumbrances.
  • Magno later discovered that the property was already mortgaged to a third party, Dela Torre, when attempting to insure it.
  • The register of deeds refused to register Magno's mortgage due to the existing first mortgage.
  • Galsim acknowledged the loan and mortgage but denied wrongdoing, claiming no damage was suffered by Magno.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court affirmed the lower court's decision, finding Galsim guilty of estafa.
  • The court ruled that Galsim's false representation about the property being free from encumbrances constituted fraud, a critical element of estafa.
  • It was determined that Magno suffered damage due t...(Unlock)

Ratio:

  • The ruling was based on the principle that obtaining a loan through false pretenses constitutes estafa, especially when the victim relies on the misrepresentation.
  • Galsim's claim that the property was free from liens was proven false, as it was already mortgaged to another party.
  • The court emphasized that Magno's belief in the mortgage's validity was reasonable; had he know...continue reading

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