Title
Supreme Court
Mandagan vs. Jose M. Valero Corp.
Case
G.R. No. 215118
Decision Date
Jun 19, 2019
Mandagan acquitted of B.P. 22 charges due to lack of notice of dishonor; civil liability upheld. SC reversed CA, reinstating RTC’s acquittal.

Case Summary (G.R. No. 215118)

Key Dates

July 11 & 28, 2001 – JMV enters lease-to-own and furnishes vehicle to Mandagan in exchange for 34 postdated checks.
June 20, 2003 – JMV’s counsel issues written demand (notice of dishonor).
June 28, 2009 – Metropolitan Trial Court (MeTC) convicts Mandagan of eight counts under B.P. 22.
February 15, 2011 – Regional Trial Court (RTC) acquits Mandagan but retains civil liability.
June 16, 2014; October 29, 2014 – Court of Appeals (CA) annuls RTC’s acquittal by certiorari.
June 19, 2019 – Supreme Court decision reinstating acquittal.

Applicable Law

1987 Constitution, Article III, Section 21 (Double Jeopardy)
Batas Pambansa Blg. 22 (Penalty for bouncing checks)
Rules of Court, Rule 45 (Certiorari)

Facts

JMV leased a 2001 Kia Rio sedan from BPI Leasing Corporation and delivered its use to Mandagan on the condition that ownership would transfer only upon full payment. Mandagan issued thirty-four postdated checks of ₱12,796.00 each. Fourteen checks were honored; eleven were dishonored for lack of funds or closed account. JMV repeatedly notified Mandagan through its Treasury Head and General Account Supervisor, culminating in a written demand dated June 20, 2003 commanding payment or return of the vehicle plus depreciation costs. Mandagan did not pay or return the car.

Procedural History

MeTC (2009) – Convicted Mandagan of eight counts of B.P. 22; ordered fines, subsidiary imprisonment, and civil indemnity of ₱102,368.
RTC (2011) – Reversed conviction for reasonable doubt, held prosecution failed to prove receipt of written demand; affirmed civil obligation without compound interest.
CA (2014) – Granted JMV’s certiorari petition, found RTC committed grave abuse by misappreciating evidence and reinstated MeTC conviction.

Issue

Whether the Court of Appeals erred in annulling the RTC’s acquittal by certiorari, in violation of the finality of acquittals and double-jeopardy protection.

Finality of Acquittal and Certiorari Exception

Under the 1987 Constitution, an acquittal is immediately final and unappealable to protect against double jeopardy. Review of an acquittal by certiorari is permitted only upon proof of jurisdictional error—grave abuse of discretion amounting to lack or excess of jurisdiction, such as denial of due process or a sham trial. Errors of law or misappreciation of evidence constitute mere errors of judgment and are not certiorable.

Elements of B.P. 22 and Notice Requirement

To secure conviction for issuing a dishonored check under BP 22, the prosecution must prove:

  1. Issuance of a check.
  2. Knowledge at issuance of insufficient funds or credit. (Prima facie established upon dishonor if notice is given and payment/arrangement within five banking days is not made.)
  3. Dishonor for insufficiency and failure to pay or arrange within five days after written notice.
    A written notice of dishonor, sent and received prior to filing, is indispensable.

Evaluation of Evidence

RTC Findings: No documentary proof Mandagan received the June 20, 2003 demand; preliminary-conference admissions unexecuted and unsigned; counter-affidavit admission inconclusive as to timing. The purported proof—a June 27 reply-letter and alleged phone admission—was not formally offered or corroborated. Mere oral reminders do not satisfy the written-notice requirement.

CA’s Error: The CA tr

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