Title
Lim vs. Mindanao Wines and Liquor Galleria
Case
G.R. No. 175851
Decision Date
Jul 4, 2012
Acquitted of BP 22 charges, Emilia Lim remained civilly liable for bounced checks; SC upheld liability based on preponderance of evidence.

Case Summary (G.R. No. 175851)

Factual Antecedents

The case arose when Mindanao Wines delivered several cases of liquor to H & E Commercial, owned by Emilia Lim, in exchange for four postdated checks, each valued at ₱25,000. Two checks bounced, leading to a demand for payment. When payment was not received, Mindanao Wines initiated criminal proceedings against Emilia for violations of BP 22 in the Municipal Trial Court in Cities (MTCC) of Davao City.

Ruling of the Municipal Trial Court

In its December 10, 1999 order, the MTCC granted Emilia’s Demurrer to Evidence, acquitting her of the criminal charges due to insufficient evidence, particularly noting the absence of testimony from a bank representative regarding the dishonor of the checks. However, the court held Emilia civilly liable for the amount of the bounced checks, reasoning that her redemption of one of the checks during the case could be construed as an acknowledgment of her obligation.

Ruling of the Regional Trial Court

Emilia appealed the MTCC's ruling to the Regional Trial Court (RTC) of Davao City, arguing that her acquittal should extend to civil liability based on insufficient evidence. The RTC disagreed, clarifying that Emilia's acquittal was based on reasonable doubt regarding criminal liability. It emphasized that preponderance of evidence supported her civil obligation to Mindanao Wines, affirming the MTCC's decision on civil liability.

Ruling of the Court of Appeals

Emilia subsequently filed a petition for review with the Court of Appeals. In its June 30, 2006 ruling, the CA upheld the RTC's decision, noting that an acquittal does not automatically absolve one from civil liability if the acquittal does not arise strictly from a finding of insufficient evidence. It highlighted that Emilia had not denied issuing the checks and dismissed her claim that the civil award lacked evidentiary basis.

Arguments Raised by Emilia Lim

Emilia's motion for reconsideration contended that the MTCC's ruling signified a total lack of a case against her and argued against the application of preponderance of evidence without requiring a defense case. However, the CA clarified that a finding of "insufficiency of evidence" does not equate to total absence of evidence and that the civil liabilities must be supported by a mere preponderance of evidence.

Supreme Court’s Ruling

The Supreme Court ultimately denied Emilia's petition, affirming the decisions of the lower courts. It established that even in the case of acquittal on a crimin

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