Title
Supreme Court
Palaoag vs. People
Case
G.R. No. 256798
Decision Date
Jul 10, 2023
Petitioner acquitted of Estafa as prosecution failed to prove conspiracy beyond reasonable doubt in fraudulent car mortgage scheme.

Case Summary (G.R. No. 256798)

Case Background

The case concerns a charge of Estafa against Jerry Dean A. Palaoag, who was accused alongside Maricar Buyo and others of defrauding Alberto M. Balauag through deceit. The prosecution alleged that together, they tricked Balauag into lending money by masquerading a woman who falsely claimed ownership of a Nissan Sentra, thus committing the offense outlined in Article 315 of the RPC. The proceedings included arraignments, testimonies, and motions, culminating in the Regional Trial Court's (RTC) verdict.

Prosecution's Case

The complainant, Balauag, testified that he had known the petitioner since 2008 and was introduced to a woman (Jane Doe) who claimed to own a Nissan Sentra. After showing fake documents, Jane Doe persuaded Balauag to lend her ₱160,000.00, which he did, believing he could claim the car as security. Subsequently, Balauag's own investigation revealed the woman was not who she claimed to be, leading him to believe he had been swindled alongside a stolen vehicle incident. The prosecution's narrative linked Palaoag's introduction of Jane Doe to Balauag as a critical facilitation of the fraud.

Defense Argument

Palaoag's defense denied any wrongdoing, asserting that he did not know Jane Doe and only facilitated a loan between her and Balauag at the request of Buyo. He claimed that any involvement was minimal and based on receiving a nominal payment after the fact. His defense contended that the prosecution failed to demonstrate the existence of a conspiracy to defraud.

RTC Ruling

The RTC found both Palaoag and Buyo guilty of Estafa, concluding that they conspired in the fraud against Balauag. The court dismissed the charges against Marquez-Hautakorpi due to insufficient evidence and ordered Palaoag to indemnify Balauag for the financial loss incurred due to the fraud.

Court of Appeals Decision

The Court of Appeals affirmed the RTC’s ruling, determining that conspiracy had been established through Palaoag's introduction of Jane Doe to Balauag. The CA found that without this introduction, Balauag would not have been defrauded. The appeals motion presented by Palaoag was denied on the grounds that it lacked new arguments meriting a reconsideration of the prior findings.

Issue Presented

The primary issue for determination was whether the Court of Appeals erred in finding Palaoag guilty of conspiring to commit the crime of Estafa, given his assertion of insufficient evidence of collaboration with Jane Doe.

Supreme Court's Ruling

The Supreme Court disagreed with the conclusion of the lower courts concerning Palaoag’s partici

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