Title
Dico vs. Court of Appeals
Case
G.R. No. 141669
Decision Date
Feb 28, 2005
Jaime Dico acquitted of B.P. Blg. 22 charges due to invalid notice of dishonor and check discrepancies, but held civilly liable for dishonored checks.
violation
acquittal
defendant
A

Case Summary (G.R. No. 51269)

Procedural History

Petitioner was charged on 28 March 1994 with three counts of violation of Batas Pambansa Blg. 22 (B.P. Blg. 22) in Criminal Cases Nos. 38254-R, 38255-R and 38256-R. He pleaded not guilty. The MTCC convicted him on 19 June 1996; the RTC affirmed on 20 February 1997. The Court of Appeals, on 30 September 1999, modified the judgments by acquitting petitioner in one case (check dated January 15, 1993) but affirmed conviction in the two other cases (checks dated May 12 and June 12, 1993). The Court of Appeals denied reconsideration on 11 January 2000. Petitioner filed a petition for review under Rule 45 to the Supreme Court.

Material Facts Presented at Trial

  • Petitioner admitted issuing three Far East Bank and Trust Company (FEBTC) checks: No. 369380 (Jan. 15, 1993) for P296,736.27; No. 369403 (May 12, 1993) for P100,000.00; and No. 369404 (June 12, 1993) for P200,000.00.
  • Equitable Card Network presented evidence that the checks were presented and dishonored for “Account Closed,” and that demand letters were sent. Equitable’s collection manager testified about petitioner’s outstanding obligation and credit limit.
  • Petitioner testified that he issued several post–dated checks as part of a proposed amortization and that he requested reconciliation of billing disputes before having the checks presented. He also made a cash payment of P100,000 on April 6, 1993, filed a petition for insolvency on May 31, 1993, and included Equitable among his creditors.

Governing Law and Elements of the Offense (B.P. Blg. 22)

Under Section 1 of B.P. Blg. 22, the elements of the offense are: (1) making, drawing or issuance of a check to apply to account or for value; (2) knowledge by the drawer at the time of issue that he had insufficient funds or credit with the drawee bank to pay the check in full upon presentment; and (3) subsequent dishonor by the drawee bank for insufficiency of funds or credit (or dishonor had the drawer not ordered a stop payment). Section 2 creates a prima facie presumption of knowledge of insufficiency when (a) the dishonor occurs upon presentment within 90 days from date of the check, (b) the drawer receives notice that the check was not paid, and (c) the drawer fails to pay or arrange payment in full within five banking days after receipt of such notice.

Burden of Proof and Constitutional Considerations

The prosecution bears the burden of proving every element of the offense beyond reasonable doubt. Procedural due process and the accused’s right to be informed of the nature and cause of the accusation are implicated when the prosecution’s proof varies from the information filed. The 1987 Constitution is applicable to the review.

Analysis — Identity Variance (Criminal Case No. 38254-R)

The information in Criminal Case No. 38254-R alleged FEBTC Check No. 364903 dated May 12, 1993 for P100,000.00, but the documentary evidence adduced at trial was FEBTC Check No. 369403 dated May 12, 1993 for P100,000.00. The Supreme Court treated this variance in identity between the check described in the information and the check produced in evidence as fatal to conviction because the identity of the check is an essential factual element that enters into the first element (issuance of the check) and, depending on the variance, may also affect the second element (knowledge at time of issuance). A variance of this sort violates the accused’s right to be properly informed of the offense charged; therefore the conviction based on the mismatched exhibit cannot stand.

Analysis — Notice of Dishonor and Presentment (Criminal Case No. 38255-R)

For FEBTC Check No. 369404 (dated June 12, 1993; amount P200,000.00), the record showed a demand letter dated June 8, 1993 received by petitioner before the check’s maturity and before the check was presented (it was deposited on June 14, 1993). Section 2’s presumption requires written notice of dishonor after presentment (or other proof of such notice) so that the five–banking–day period to make good or arrange payment can be reckoned. A demand letter sent before the check became due and prior to its presentation cannot qualify as the statutory notice of dishonor contemplated by Section 2. Because Equitable did not send a written notice of dishonor after presentment (or demonstrate actual receipt of such notice within the statutory framework), the statutory prima facie presumption of knowledge did not arise. Absent that presumption, the prosecution had to independently prove petitioner’s knowledge of insufficiency at the time of issuance; the record lacked such proof. Consequently, the element of knowledge was not established and the conviction could not be sustained.

Analysis — Presentation Beyond Ninety Days (Criminal Case No. 38256-R)

With respect to FEBTC Check No. 369380 (dated January 15, 1993), the Court of Appeals had earlier found that the check was pr

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