Title
Reside y Tan vs. People
Case
G.R. No. 210318
Decision Date
Jul 28, 2020
Janice Reside, a school principal, misappropriated tuition fees, initially charged with estafa. The Supreme Court ruled her guilty of qualified theft, adjusting penalties and damages due to her material, not juridical, possession of funds.

Case Summary (G.R. No. 210318)

Petitioner

Janice Reside y Tan

Respondent

People of the Philippines

Key Dates

• May 8, 2006 – Filing of Information in RTC Branch 201, Las Piñas City
• April 8, 2011 – RTC Decision convicting petitioner of estafa
• June 28, 2013 – CA Decision affirming with modification
• November 26, 2013 – CA Resolution denying reconsideration
• July 28, 2020 – Supreme Court Decision

Applicable Law

• 1987 Philippine Constitution
• Revised Penal Code (RPC) Articles 308 (Theft), 310 (Qualified Theft), 315(1)(b) (Estafa by Misappropriation)
• Indeterminate Sentence Law
• Republic Act No. 10951 (amending Article 309, penalties)
• Rules of Court, Rule 45; Revised Rules on Criminal Procedure, Rule 120, Sections 4–5

Facts

From 2001 to 2005, petitioner received P1,721,010.82 in tuition and other school fees. She issued temporary receipts in contravention of policy, failed to remit collections to TGWSI, and avoided meetings with De Dios. After barangay conciliation, petitioner executed a promissory note to pay within three months but failed to comply, prompting the criminal complaint.

Procedural History

The RTC found petitioner guilty of estafa under Article 315(1)(b), sentencing her to an indeterminate term of 8 years (prision mayor, medium) to 17 years 4 months 1 day (reclusion temporal) and ordered indemnity of P1,721,010.82 plus 10% attorney’s fees. On appeal, the CA reduced the indemnity to P134,462.90, adjusted the penalty to 4 years 2 months (prision correccional) to 17 years 4 months 1 day (reclusion temporal), and maintained 10% attorney’s fees. Reconsideration was denied.

Issue

Whether petitioner’s failure to remit entrusted funds constitutes estafa under Article 315(1)(b) or, instead, qualified theft under Articles 308 and 310 of the RPC.

Supreme Court’s Ruling

The Supreme Court held that petitioner cannot be guilty of estafa because she had only material possession—not juridical possession—of the funds. The Court accordingly found her guilty of qualified theft, a crime necessarily included in the charge, and modified the penalty.

Estafa vs. Qualified Theft Analysis

  • Estafa by misappropriation (Article 315(1)(b)) requires both material and juridical possession of the property.
  • As an employee-custodian, petitioner acquired only physical custody; juridical possession remained with TGWSI.
  • Prior jurisprudence (Guzman v. CA; Chua-Burce; Roque v. People; Benabaye) consistently treats funds held by employees as material possession, rendering misappropriation theft, not estafa.

Elements of Qualified Theft

  1. Taking of personal property belonging to another
  2. Without owner’s consent
  3. With intent to gain (presumed from unlawful taking)
  4. Without violence or intimidation
  5. Committed with grave abuse of confidence (Article 310 RPC)
  6. Accomplished under circumstances enumerated in Article 310

All elements were satisfied: petitioner took TGWSI’s funds without consent, abused her trust as principal, intended personal gain, used no force, and misappropriated entrusted collections.

Penalty Determination

  • Under Article 309 (as amended by RA 10951), theft of P134,462.90 is punishable by prision correc

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