Title
Diong Bi Chu vs. Court of Appeals
Case
G.R. No. L-49588
Decision Date
Dec 21, 1990
Petitioners acquitted in criminal estafa case; civil action for damages under Article 33 allowed independently, despite acquittal, based on fraud allegations.

Case Summary (G.R. No. L-14580)

Background and Procedural History

The case arose from a complaint filed by Jaime Navoa and Milagros de Leos against the petitioners, Diong Bi Chu and Chang Ka Hee, alleging estafa under Article 315, paragraph 2(a) of the Revised Penal Code due to fraudulent acts that induced them to mortgage land registered in Jaime Navoa's name. The proceeds of this mortgage were allegedly misappropriated, resulting in damages amounting to P670,000. After the prosecution presented its case, Chang Ka Hee successfully filed a demurrer, leading to the dismissal of the charge against him. Later, on August 3, 1977, Diong Bi Chu was acquitted as the Military Commission concluded the transaction was a joint venture, where inherent risks had materialized.

Civil Action Arising from the Criminal Case

Subsequent to the criminal proceedings, on March 31, 1978, Jaime Navoa and Milagros de Leos initiated a civil action against Diong Bi Chu, Chang Ka Hee, and Lu Liong Corporation for damages. The petitioners motioned to dismiss this civil action, asserting it was barred by the prior judgments from the Military Commission, citing the respondents' failure to reserve their right to file a separate action. The trial court denied this motion on May 30, 1978, prompting multiple reconsideration motions, all of which were denied.

Court of Appeals' Ruling

The petitioners escalated the matter to the Court of Appeals, filing a petition for certiorari against the trial court's decisions. In its resolution dated October 16, 1978, the appellate court dismissed the petition, elucidating that a civil action for damages under Article 33 of the Civil Code is distinct and independent from the criminal case. The court further clarified that an acquittal in a criminal case does not bar the pursuit of a civil action for damages stemming from the same set of facts.

Legal Analysis and Conclusion

The core issue centered on whether the civil action for damages under Article 33 of the Civil Code is barred by a prior judgment of acquittal in a criminal case. Article 33 explicitly states that civil actions for defamation, fraud, and physical injuries can proceed independently of their criminal counterparts, requiring only a preponderance of evidence rather than the higher standard of proof beyond a reasonable doubt. Thus, the civil action's independence is central to its viability, meaning that the outcome of the criminal case is inconsequential to the proceedings of the civil suit.

Additionally, the dismissal of the criminal case against Chang Ka Hee and the acquittal of Diong Bi Chu do not impede the private respondents' right to claim damages for

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