Title
Clay and Feather International, Inc. vs. Lichaytoo
Case
G.R. No. 193105
Decision Date
May 30, 2011
50-50 shareholders of a firearms company accuse each other of theft; Supreme Court finds probable cause for Qualified Theft charges against respondents.

Case Summary (G.R. No. 193105)

Factual Background of the Case

On April 4, 2008, petitioners filed a complaint-affidavit against respondents for five counts of Qualified Theft, as defined in Article 310 of the Revised Penal Code. The allegations asserted that between February 2006 and November 2007, the respondents, by virtue of their corporate positions, unlawfully and intentionally took several firearms owned by CFII without the consent of the corporation or its stockholders. The total value of the taken firearms was stated to be approximately Euro 25,218.00, equivalent to P1,639,170.00.

Respondent’s Defense

In their counter-affidavit filed on May 5, 2008, respondents sought the dismissal of the complaint, claiming it was an act of harassment aimed at denying them their interests in CFII. They asserted that the firearms in question were purchased by them, paid in full, and that they had utilized their Euro bank accounts for transactions, which CFII did not maintain. They further contended that some transactions were offset against advances made for the corporation's importation of firearms, which petitioners had knowledge of.

Rejoinder by Petitioners

Petitioners filed a reply-affidavit on May 9, 2008, challenging the defense put forth by respondents. They acknowledged the absence of a CFII Euro bank account and confirmed using respondents' accounts for currency transactions. However, petitioners insisted that the funds used for the purchases were corporate funds and not personal contributions by the respondents, thereby reinforcing their claim of theft. They argued that the lack of detailed evidence on the offsetting claims made by respondents indicated their arguments lacked credibility.

Resolutions by the Office of the City Prosecutor

Following the preliminary investigation, on July 7, 2008, the Office of the City Prosecutor issued a resolution recommending the dismissal of the complaint due to insufficiency of evidence. This decision prompted petitioners to seek a review from the Office of the Secretary of Justice, which on June 2, 2009, reversed the prosecution's resolution, ordering the filing of information against the respondents.

Court of Appeals Decision

Respondents subsequently sought a remedy through a petition for certiorari with the Court of Appeals (CA). On February 26, 2010, the CA granted the petition, annulled the Secretary of Justice's resolutions, and reinstated the dismissal of the complaint, arguing that the evidence did not establish probable cause for the charges.

Legal Analysis on Probable Cause

The Supreme Court emphasized that the determination of probable cause, essential for filing criminal indictments, requires the establishment of sufficient facts to justify a well-founded belief that a crime has been committed. In analyzing the elements of theft—as defined under Articles 308 and 310 of the Revised Penal Code—the Court reaffirmed that the evidence presented by the petitioners indicated that respondents had t

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