Title
Supreme Court
Luces vs. Damole
Case
G.R. No. 150900
Decision Date
Mar 14, 2008
Cynthia Luces was convicted of estafa for misappropriating PO cards entrusted by Cherry Damole, failing to remit proceeds, and causing financial prejudice. The Supreme Court affirmed the conviction, rejecting claims of purely civil liability and no prejudicial question. Penalty modified.

Case Summary (G.R. No. 150900)

Relevant Agreements and Background

In July 1993, Luces and Damole formed an agreement regarding the sale of 870 PO cards with a face value of P412,305.00. Luces was to sell these cards and remit the sale proceeds to Damole, retaining her commission. She also undertook to return unsold cards. However, Luces eventually defaulted on her obligation to remit the proceeds, leading Damole to file a civil case for collection and a separate criminal complaint, charging Luces with Estafa (swindling) under the Revised Penal Code.

Criminal Proceedings

An Information dated March 3, 1995, charged Luces with Estafa, citing her misappropriation of the PO cards contrary to the trust receipt agreement. Initially, Luces sought to dismiss the criminal case citing the pendency of the civil case. The RTC, after initially suspending the proceedings, ultimately upheld that the civil case's outcome would not impact the criminal charge. Luces pleaded not guilty during her arraignment.

Trial and Conviction

During the trial, the prosecution established Luces's receipt of the PO cards and her failure to remit proceeds or return unsold cards. Evidence showed that Luces used the cards herself and allowed family members to do the same, creating a breach of trust. In contrast, Luces argued that her liabilities were merely civil, claiming ownership of the PO cards due to the nature of their agreements. On August 25, 1997, the RTC convicted Luces of Estafa.

Appeals and Decisions

The Court of Appeals affirmed Luces's conviction but modified the penalty. It emphasized that all elements of Estafa were met and clarified that the civil case would not determine her guilt in the criminal case. Luces subsequently filed a petition for review, raising several issues regarding the appellate court's decision-making.

Legal Analysis of Estafa Elements

Estafa is defined in Article 315(1)(b) of the Revised Penal Code, which requires:

  1. Receipt of property in trust or under an obligation to remit.
  2. Misappropriation or conversion of that property.
  3. Resulting prejudice to another party.
  4. Demand for fulfillment of the obligation. In this case, evidence confirmed Luces's receipt of the PO cards and subsequent unauthorized use, leading to damages claimed by Damole.

Findings Related to Misappropriation

The trust agreements specified that Luces had to hold the PO cards in trust for Damole. The court considered whether Luces had acted in accordance with their agreements and evaluated her actions when selling the cards, establishing that a breach of trust occurred when Luces allowed unauthorized use of the cards. The evidence showed that she misappropriated them for personal use, validating claims of Estafa.

Penalty Imposed

Considering the amount involved exceeded P22,000, the applicable penalty under Article 315 of the Revised Penal Code indicated punishments ranging from prision correccional to prision mayor. The maximum penalty was set at seven (7) years, eight (8) months, and twenty-one (21) days of prision mayor. The minimum was determined to be within the range of the next lower penalty, establishing the full scope of Luces's sentence.

Civil Case as a Prejudicial Ques

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