Title
Ben Line Agencies Philippines, Inc. vs. Madson
Case
G.R. No. 195887
Decision Date
Jan 10, 2018
Ben Line hired AALTAFIL and ACE Logistics for crane services, paid P2.6M, but faced operational issues. DOJ dismissed refund claim on procedural grounds; SC reversed, emphasizing procedural rules should not hinder substantive justice. Case remanded to DOJ.

Case Summary (G.R. No. 195887)

Applicable Law

The legal framework referred to in this decision is based on the 1987 Philippine Constitution, along with the applicable provisions of the Revised Penal Code concerning estafa and procedural rules under the 2000 National Prosecution Service (NPS) Rules on Appeal.

Case Background

Ben Line, engaged in maritime business, sought to hire a crane for unloading shipments. After communication with AALTAFIL Incorporated, it was determined that the crane was not available. Subsequently, Ben Line contracted with ACE Logistics, culminating in multiple payments for the crane rental totaling P2,595,000. Due to operational difficulties, Ben Line sought a refund from both AALTAFIL and ACE but was met with refusal, prompting a complaint filed with the National Bureau of Investigation (NBI).

Proceedings Before the Department of Justice

The NBI resolved to prosecute the respondents for estafa, but the Office of the Prosecutor (OCP) later dismissed the complaint, citing insufficient evidence and no misrepresentation in the ownership of the crane. This dismissal led to Ben Line filing a petition for review with the Department of Justice (DOJ). However, the DOJ dismissed the petition on procedural grounds, arguing that Ben Line failed to comply with requirements under the 2000 NPS Rules on Appeal.

Court of Appeals Ruling

The Court of Appeals (CA) upheld the DOJ's decision, emphasizing that the dismissal was due to a lack of compliance with procedural rules. Ben Line's motion for reconsideration was also denied, resulting in a petition for certiorari filed by Ben Line to the Supreme Court.

Supreme Court Decision

The Supreme Court granted Ben Line's petition, criticizing the DOJ's decision as one primarily based on technicalities without sufficient consideration of the substantive issues. The Court stated that procedural rules should facilitate rather than hinder the pursuit of justice. It acknowledged that the DOJ's dismissal of Ben Line's petition was inappropriate as the company had provided legible copies of pertinent documents in a subsequent motion for reconsideration.

Legal Principles Highlighted

The ruling emphasized that while the strict adherence to procedural rules is generally vital, it should not lead to t

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