Case Summary (G.R. No. 197571)
Applicable Law
The legal issues at stake are grounded in the Revised Penal Code, specifically Article 308 concerning theft, and Article 309, which provides the penalties for such theft. Furthermore, Presidential Decree No. 401 penalizes the unauthorized installation and tampering of telephone connections.
Factual Background
The case arises from actions taken following a letter from Rolando A. Alcantara of PLDT, requesting assistance from the police to investigate illegal toll bypass activities attributed to Planet Internet, Worldwide Web Corp., and Message One Inc. Search warrants were subsequently issued that led to the discovery of unauthorized telecommunications equipment at the premises of Planet Internet, resulting in the arrest of its employees and recommendations for criminal charges against the petitioners for theft and violations of telecommunications law.
Arguments of the Petitioners
Robertson S. Chiang defended the legitimacy of Planet Internet, asserting that it operates as an authorized reseller of international gateway facility (IGF) services. The petitioners emphasized that while PLDT’s test calls allegedly did not document the calls, those calls were rerouted through legitimate channels to either Eastern Telecommunications or Capitol Wireless, for which they maintained that the associated fees were paid. They challenged the assertion that toll bypass constitutes theft under the law, arguing against the categorization of lost business revenues as personal property under the definition of theft.
PLDT’s Position
PLDT countered the petitioners' claims by arguing that the operations of Planet Internet were unauthorized, highlighting a lack of a legislative franchise or Certificate of Public Convenience and Necessity from the National Telecommunications Commission (NTC) to operate as a telecommunications provider. The respondent claimed the petitioners were engaged in illegal toll bypass that deprived PLDT of due compensation for telephone services and argued that the evidence presented was sufficient to establish probable cause for charging the petitioners.
Judicial Proceedings
Upon conclusion of the initial investigations, the Office of the City Prosecutor of Pasig dismissed charges against the petitioners for insufficiency of evidence, a decision later upheld by the Department of Justice. However, PLDT filed both a petition for certiorari and a motion for reconsideration, asserting that the lower courts had gravely abused their discretion in dismissing the complaints based on insufficient evidence.
Court of Appeals Decision
The Court of Appeals overturned the decisions of lower courts, finding probable cause for the charges filed against the petitioners, identifying their actions as constituting theft and violations of PD No. 401. The CA determined that PLDT’s evidence sufficiently established that the petitioners engaged in illegal operations, depriving PLDT of its business resources by rerouting international calls as local calls. The appellate court concluded that the defenses presented by petitioners were more appropriate for trial rather than at the preliminary stage.
Affirmation by Supreme Court
In the final ruling, the Supreme Court affirmed the Court of Appeals' decisions, emphasizing that the DOJ and the Off
...continue readingCase Syllabus (G.R. No. 197571)
Overview
- Case Reference: G.R. No. 196679
- Date: December 13, 2017
- Court: First Division, Supreme Court of the Philippines
- Petitioners: Robertson S. Chiang, Nikki S. Chiang, Maria Sy Be Ty Chiang, Ben C. Javellana, and Carmelita Tuason
- Respondent: Philippine Long Distance Telephone Company (PLDT)
- Nature of the Case: Petition for review on certiorari challenging the Decision and Resolution of the Court of Appeals (CA) regarding criminal complaints of theft and violation of Presidential Decree No. 401.
Facts of the Case
- PLDT requested assistance from the National Capital Region Police Office regarding illegal toll bypass operations involving companies including Worldwide Web Corp., Message One Inc., and Planet Internet Mercury One.
- Search warrants were issued by the Regional Trial Court (RTC) against these companies, leading to the seizure of equipment and the arrest of two employees.
- The Department of Justice (DOJ) was involved in the investigation, where PLDT accused Planet Internet of conducting illegal toll bypass operations, which resulted in significant financial losses for PLDT.
- Petitioners argued that Planet Internet was a legitimate value-added service provider and that the test calls made by PLDT's representatives did not bypass PLDT's facilities but rather went through authorized providers.
Procedural History
- The RTC initially ordered a re-investigation after the inquest proceedings for the employees arrested.
- The OCP Pasig dismissed the charges against the p