Title
Sorongon vs. People
Case
G.R. No. 230669
Decision Date
Jun 16, 2021
Petitioner acquitted of Estafa as amicable settlement novated the contract, waiving ownership of the cement mixer, negating criminal liability.

Case Summary (G.R. No. 230669)

Petitioner

Rex Sorongon pleaded not guilty to Estafa under Article 315(1)(b) of the Revised Penal Code, accused of misappropriating the borrowed mixer.

Respondent

The People of the Philippines prosecuted Sorongon for Estafa, alleging he willfully failed to return the mixer and converted it for personal use.

Key Dates

• July 2004 – Mixer borrowed by petitioner
• January 2005 – Demand letter sent by the Van der Boms’ counsel
• March 2005 – Amicable settlement before Barangay Sto. Rosario
• January 2006 – Filing of the Information for Estafa
• July 25, 2011 – RTC conviction
• October 25, 2016 – CA affirmed conviction
• February 21, 2017 – CA denied reconsideration

Applicable Law

1987 Philippine Constitution; Rule 45, Rules of Court; Revised Penal Code Article 315(1)(b); Civil Code provisions on novation (Arts. 1291–1299).

Facts of the Case

After completing the water system, Sorongon requested use of the cement mixer for an Iloilo project. Nelly Van der Bom lent it on condition of prompt return. Months passed without return despite repeated demands, prompting a formal demand letter and barangay proceedings.

Prosecution Evidence

Testimony from Nelly, a mechanic, two employees, and the original seller established that Sorongon borrowed the mixer, transported it to Iloilo, and never returned it despite demands, indicating misappropriation.

Defense Evidence

Sorongon denied borrowing the mixer. Barangay Kagawad Rudy de la Torre certified an amicable settlement in March 2005 under which Nelly waived ownership of disputed equipment—including the mixer—and parties agreed not to file further charges. Sorongon relied on this settlement in a labor case award.

Lower Court Rulings

The RTC convicted Sorongon of Estafa, crediting prosecution witnesses and holding the amicable settlement irrelevant to criminal liability. The CA affirmed, ruling compromise does not extinguish public criminal action.

Issue on Review

Whether the pre-filing barangay settlement effectively novated the original commodatum obligation, thereby preventing incipient criminal liability under Article 315(1)(b).

Supreme Court Analysis on Novation

Acknowledging that Estafa under Article 315(1)(b) arises from contractual obligations, the Court recognized a well-established exception: a valid pre-filing novation can extinguish the original trust relation and prevent criminal liability when the parties unequivocally replace the old obligation with a new, incompatible one.

Application of Jurisprudence

Citing People v. Nery, Quinto v. People, Metropolitan Bank & Trust Co. v. Reynado, and Degaños v. People, the Court emphasized that valid novation requires (1) a prior valid obligation, (2) agreement to

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