Title
De Leon, Jr. vs. Roqson Industrial Sales, Inc.
Case
G.R. No. 234329
Decision Date
Nov 23, 2021
Petitioner, acquitted of B.P. 22 violation, held civilly liable for dishonored check; legal interest rates affirmed; may seek reimbursement from accommodated party.
criminal charge
dishonored check
civil liability

Case Summary (G.R. No. 234329)

Factual Background

Roqson Industrial Sales, Inc. alleged that it delivered twelve thousand liters of diesel to RB Freight International, Inc., and that Benjamin T. De Leon, Jr., acting as managing director of RB Freight, issued his personal postdated check for P436,800.00 in payment. Upon presentment, RCBC Check No. 0201234 was dishonored because it was drawn on a closed account. Respondent sent a series of demand letters to RB Freight and petitioner, including the September 15, 2006 demand and later a registered final demand, and received letters from RB Freight proposing settlement and later requesting a debt moratorium; no payment was made.

Criminal Proceeding and Preliminary Investigation

Respondent filed a criminal complaint for violation of B.P. 22 against petitioner, and the City Prosecutor of Quezon City found probable cause. During the criminal trial before the METC, respondent presented the dishonored check, demand letters, and testimony of its collection officer, Alfredo D. Crisostomo. Petitioner testified that he issued the check but denied receipt of any written notice of dishonor.

METC Proceedings and Ruling

The Metropolitan Trial Court (Branch 40) acquitted petitioner of violation of B.P. 22 in its Decision dated May 28, 2013, finding that the prosecution failed to prove beyond reasonable doubt that petitioner knew of the insufficiency of funds because it did not conclusively prove actual receipt of the notice of dishonor. The METC nonetheless held petitioner civilly liable to respondent for the face value of the check (P436,800.00) with legal interest at six percent per annum from last demand (November 3, 2006), awarded attorney’s fees and per-appearance fees, and costs of suit, explaining that an acquittal based on reasonable doubt does not necessarily extinguish civil liability.

RTC Proceedings and Ruling

On appeal, the Regional Trial Court (Branch 226) affirmed the METC’s acquittal but modified the civil award in its Judgment of February 23, 2015. The RTC increased the rate of legal interest to twelve percent per annum and ordered interest to run from judicial demand on October 3, 2007 until full payment. The RTC rejected petitioner’s contention that the obligation was solely RB Freight’s corporate debt and held that petitioner, having personally signed the check, was liable under Section 1 of B.P. 22, noting that B.P. 22 penalizes the mere issuance of a bouncing check regardless of the purpose for which it was issued.

Court of Appeals Proceedings and Ruling

The Court of Appeals dismissed petitioner’s petition under Rule 42 and affirmed the RTC judgment with modification concerning post-2013 interest. In its April 20, 2017 Decision, the CA applied the doctrine of Nacar v. Gallery Frames and ruled that the amount of P436,800.00 earned interest at twelve percent per annum from October 3, 2007 up to June 30, 2013, and thereafter six percent per annum from July 1, 2013 until full payment. The CA sustained the lower courts’ finding that petitioner was personally liable because he issued his own personal check and thereby represented that he was personally answerable for its face value.

Petition and Parties’ Contentions

Petitioner sought review by petition under Rule 45, arguing that the underlying obligation was RB Freight’s corporate debt because the sale of diesel was between respondent and RB Freight; he maintained that he merely issued a “hold-out” personal check and did not intend to act as an accommodation party or surety, and that his acquittal precluded civil liability. Respondent countered that petitioner issued his personal check, admitted such issuance, and therefore assumed civil liability for the dishonored check; respondent contended that petitioner’s civil liability is distinct from RB Freight’s corporate obligation and cited authority supporting recovery from an accommodation party.

Issue Presented

The principal issue certified for resolution was whether the Court of Appeals erred in affirming petitioner’s civil liability to respondent for the face value of RCBC Check No. 0201234 amounting to P436,800.00.

Supreme Court’s Resolution

The Supreme Court denied the petition and affirmed the Court of Appeals Decision with modification. The Court held that although petitioner was acquitted of criminal liability under B.P. 22 on the ground of reasonable doubt—thereby foreclosing civil liability ex delicto—he remained civilly liable by preponderance of evidence as an accommodation party under Section 29 of the Negotiable Instruments Law for RB Freight’s corporate debt. The Court modified the civil award by deleting the attorney’s fees and costs previously imposed and affirmed that petitioner is liable as an accommodation party without prejudice to his right of recourse against RB Freight.

Legal Basis and Reasoning on Survival of Civil Liability

The Court anchored its analysis on two sequential premises: first, civil liability ex delicto arises from a criminal conviction under Article 100 of the Revised Penal Code and therefore cannot subsist where the criminal elements were not proven beyond reasonable doubt; second, where acquittal occurs on reasonable doubt, a civil action may still proceed on other sources of obligation in Article 1157 of the Civil Code, such as contracts or quasi-contracts, by preponderance of evidence pursuant to Article 29 of the Civil Code. The Court applied these principles and the Court’s prior jurisprudence in Chiok v. People, Lumantas v. Calapiz, Jr., and Manantan v. Court of Appeals to explain that an acquittal on reasonable doubt does not automatically extinguish every civil liability but requires identification of an independent source of civil obligation.

Accommodation Party and Liability under Section 29 NIL

The Court examined whether petitioner became an accommodation party as defined in Section 29 of the Negotiable Instruments Law. The Court found by preponderance of evidence that the debt for which the dishonored check was issued was corporate in nature and that petitioner signed and delivered his personal check to secure continued credit and deliveries to RB Freight. The Court concluded that the act of issuing his personal check for RB Freight’s obligation, even absent personal benefit or direct consideration, satisfied the elements of an accommodation party—signing without receiving value and lending his name for the credit of another—and thereby rendered petitioner liable to a holder for value. The Court relied on authority including Crisologo-Jose v. Court of Appeals and Philippine National Bank v. Maza to reaffirm that an accommodation party is liable to a holder for value and has a right of reimburseme

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