Title
BDO Life Assurance, Inc. vs. Palad
Case
G.R. No. 237845
Decision Date
Oct 16, 2019
BDO Life challenged CA's reversal of probable cause against Atty. Palad in an insurance fraud scheme. SC upheld CA, ruling Palad lacked knowledge of fraud, acting as a lawyer, not a conspirator.

Case Summary (G.R. No. 237845)

Antecedent Facts

The underlying events began when Alvarado filed personal accident insurance claims totaling approximately Php6,240,000.00, using falsified documents, including death certificates of spouses Carlos and Norma Andrada. Investigation by BDO resulted in the discovery of falsified documents, including non-existent police reports and licenses. An entrapment operation was set, leading to the arrest of Alvarado, Gragas, and Palad when they attempted to collect the insurance money.

Proceedings at the Prosecutor Level

The Makati City Assistant Prosecutor found probable cause only against Alvarado and Gragas, dismissing the charges against other individuals, including Palad. This prompted BDO to challenge the dismissal, leading to a review by the Department of Justice, which upheld the prosecutor's findings.

Proceedings with the Appellate Court

Upon appeal, the Court of Appeals (CA) initially favored BDO, reversing the prosecutor's decision and finding probable cause against the other respondents. However, following motions for reconsideration, the CA amended its decision, clearing Palad of any conspiratorial involvement, asserting that he performed only duties as a lawyer without contributing to the alleged fraud.

Issue in the Case and Arguments of the Parties

The primary legal issue is whether the CA erred in denying probable cause against Palad as a co-conspirator. The petitioner argued that Palad's actions indicated active partnership in the fraudulent scheme, while Palad maintained that he simply acted as a lawyer without any knowledge of the fraudulent activities.

Court's Ruling

The Supreme Court denied the petition, emphasizing that determining probable cause is a factual matter and not a legal one, stating it does not reevaluate factual findings from lower courts unless clear abus

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