Title
Supreme Court
Diaz vs. People
Case
G.R. No. 208113
Decision Date
Dec 2, 2015
Petitioner acquitted of estafa but held civilly liable for P32,000 due to failure to remit proceeds or return goods, affirmed by SC with modified interest rates.

Case Summary (G.R. No. 208113)

Factual Background

On March 11, 1999, an Information for estafa was lodged against petitioner Diaz in the Regional Trial Court of Manila. The prosecution's case rested on the testimony of respondent Arcilla, who claimed that merchandise worth P35,300.00 was entrusted to petitioner on February 20, 1996, with expectations to remit sales proceeds or return unsold items within a specified period. The petitioner only remitted P3,300.00 and allegedly failed to fulfill her obligations despite repeated demands from the respondent. In her defense, the petitioner argued that she did not act as an agent and had only engaged in previous transactions involving gift checks and purchase order cards, asserting that she did not receive the merchandise as claimed.

Trial Court Ruling

The Regional Trial Court acquitted the petitioner of estafa charges but found her civilly liable to pay the respondent P32,000.00, acknowledging that while prosecution failed to establish intent to defraud, the petitioner had admitted to receiving gift checks totaling that amount. The RTC regarded the relationship between the parties as akin to a principal-agent dynamic, which imposes civil liability on the agent for damages resulting from non-performance of duties.

Court of Appeals Ruling

On appeal, the Court of Appeals upheld the civil liability of the petitioner. It ruled that the acknowledgment receipt dated February 20, 1996, substantiated the transaction between the parties and the petitioner's subsequent failure to remit or return the goods. The appellate court rejected the petitioner's claims about signing blank documents and modified the interest award to commence from the time of extrajudicial demand on July 28, 1998, applying a 6% per annum interest rate as opposed to the 12% initially favored by the RTC. A motion for reconsideration filed by the petitioner was denied.

Legal Issue Presented

The central issue that arose before the Supreme Court was whether the Court of Appeals erred in affirming the finding of civil liability against petitioner Diaz.

Supreme Court's Ruling

The Supreme Court determined that the petition lacked merit and clarified that the cessation of a criminal action does not extinguish civil liability when an acquittal emerges from a reasonable doubt. It affirmed the appellate court's reliance on the preponderance of evidence standard, stating that the acknowledgment receipt effectively demonstrated the

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