Title
Supreme Court
Arriola vs. People
Case
G.R. No. 199975
Decision Date
Feb 24, 2020
Arriola convicted of Estafa for defrauding Del Rosario via false land sale representations; penalty modified under RA 10951.

Case Summary (G.R. No. 199975)

Petitioner, Respondent, and Applicable Law

Petitioner: Luis T. Arriola
Respondent: People of the Philippines
Offense Charged: Estafa under Revised Penal Code (RPC) Article 315(2)(a)
Constitutional Basis: 1987 Philippine Constitution
Implementing Rules: Rules of Court, Rule 130 (Hearsay) and Rule 45 (Certiorari)

Key Dates and Procedural History

April–June 2001: Alleged fraudulent sale negotiations and receipt of ₱437,000
August 2, 2001: Notarization of deed
May–June 2002: Issuance and dishonor of checks
July 11, 2002: Another dishonored check
April 17, 2007: RTC conviction with indeterminate penalty
October 15, 2007: Partial payment of ₱437,000 by petitioner
August 5, 2011: CA decision affirming conviction, deleting indemnity award
January 3, 2012: CA resolution denying reconsideration
February 24, 2020: Supreme Court decision

Trial Court Decision

The RTC found petitioner guilty beyond reasonable doubt of estafa by false pretenses under Article 315(2)(a) RPC. It held that Arriola falsely claimed authority to sell Candelaria’s lot, produced a defective authorization letter, bogus fax transmission, and a deed with suspect signatures to induce Del Rosario to pay ₱437,000. He was sentenced to an indeterminate term of 4 years, 2 months, and 1 day of prision correccional to 20 years of reclusion temporal, plus restitution.

Court of Appeals Ruling

The CA affirmed the RTC, ruling that all elements of estafa by deceit were satisfied: false pretenses, reliance, damage. It held that Del Rosario’s testimony of calls with Candelaria was an independently relevant statement, not barred by the hearsay rule. The CA deleted the restitution clause, noting petitioner had already paid Del Rosario, and denied his plea of lack of due process and reliance on good faith.

Issues on Review

  1. Admissibility of hearsay evidence (calls with Candelaria)
  2. Existence of petitioner’s good faith based on repayment of proceeds
  3. Application of the equipoise doctrine due to alleged conflicting versions

Supreme Court’s Analysis on Hearsay and Independently Relevant Statements

The Court held that Del Rosario’s and counsel’s testimonies regarding statements by Candelaria were admitted as independently relevant statements. They were not offered to prove truth but to establish that such statements were made, proving petitioner’s lack of authority and reinforcing the totality of circumstances. Cross-examination tested their perception, and ancillary evidence (telephone records, White Pages, statutory declaration) corroborated the context.

Findings on Falsity of Representations and Documentary Fabrication

The Supreme Court examined the authorization letter, fax transmission, and deed. It observed that the authorization merely permitted receipt of payment, not a special power of attorney to sell real property, as required by Articles 1874 and 1878(5) of the Civil Code. Signature comparisons revealed stark discrepancies, raising serious doubts about their genuineness. Phone calls with Candelaria confirmed she never authorized any sale and was not in Manila to sign documents.

Application of Estafa Elements

All four elements under Article 315(2)(a) RPC were satisfied:
• False pretense: Claim of authority to sell supported by fabricated documents.
• Timing: Representations preceded or coincided with receipt of payment.
• Reliance: Del Rosario parted with ₱437,000 based on petitioner’s assurances.
• Damage: Complainant’s money was misapplied for petitioner’s benefit.

Return of Money, Good Faith, and Equipoise Rule

The retur

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