Case Digest (G.R. No. 145578)
Facts:
In G.R. No. 145578, Jose C. Tupaz IV and Petronila C. Tupaz, respectively Vice-President for Operations and Vice-President/Treasurer of El Oro Engraver Corporation, applied in September and October 1981 for two commercial Letters of Credit with the Bank of the Philippine Islands to finance raw materials for a Philippine Army contract. Simultaneously, they executed two Trust Receipts: one dated September 30, 1981 (P564,871.05) and another dated October 9, 1981 (P294,000), each stipulating that the signatories would sell the covered goods, remit proceeds to the bank or return unsold goods by December 1981, and that their “liability in this guarantee shall be DIRECT AND IMMEDIATE” without prior action against the corporation. After delivery of materials, the bank paid the suppliers but the petitioners defaulted. On June 1983 the bank sent final demand letters. When the corporation could not fully pay, the bank filed estafa charges under Section 13, Presidential Decree No. 115 in JaCase Digest (G.R. No. 145578)
Facts:
- Parties and Transaction
- Petitioners Jose C. Tupaz IV (VP for Operations) and Petronila C. Tupaz (VP/Treasurer) were officers of El Oro Engraver Corporation, which had a contract to supply “survival bolos” to the Philippine Army.
- To finance raw‐material purchases, they applied for two commercial letters of credit from the Bank of the Philippine Islands (BPI): LC No. 2-00896-3 (₱564,871.05) in favor of Tanchaoco Manufacturing Inc., and LC No. 2-00914-5 (₱294,000) in favor of Maresco Rubber Corp. Simultaneously, petitioners executed trust receipts undertaking to sell the goods and remit proceeds or return unsold goods by specified dates.
- Default and Prosecution
- After BPI paid the suppliers, petitioners failed to remit proceeds. Despite partial payments, BPI’s final demands (June 1983) went unheeded. BPI pressed estafa charges under Section 13, PD 115.
- Informations were filed in January 1984 with RTC Makati; at trial petitioners were acquitted of estafa (July 1992) but held jointly and solidarily liable with El Oro for the unpaid balance (₱624,129.19 plus 18% interest, 10% attorney’s fees, expenses, costs). The Court of Appeals (Sept. 2000) affirmed; its denial of reconsideration followed in October 2000.
Issues:
- Binding Personal Liability
- Did petitioners contractually bind themselves personally for El Oro’s debts under the trust receipts?
- Nature and Extinguishment of Liability
- If personal liability exists, is it solidary with the corporation?
- Does acquittal of estafa under PD 115 extinguish petitioners’ civil liability?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)