Professional Documents
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Agency, Trust and Partnership
Agency, Trust and Partnership
CARMEN LIWANAG, petitioner,
vs.
THE HON. COURT OF APPEALS and THE PEOPLE OF THE PHILIPPINES, represented by the Solicitor
General, respondents.
ROMERO, J.:
Petitioner was charged with the crime of estafa before the Regional Trial Court (RTC), Branch 93, Quezon City, in an
information which reads as follows.
That on or between the month of May 19, 1988 and August, 1988 in Quezon City, Philippines and
within the jurisdiction of this Honorable Court, the said accused, with intent of gain, with
unfaithfulness, and abuse of confidence, did then and there, willfully, unlawfully and feloniously
defraud one ISIDORA ROSALES, in the following manner, to wit: on the date and in the place
aforementioned, said accused received in trust from the offended party cash money amounting
to P536,650.00, Philippine Currency, with the express obligation involving the duty to act as
complainant's agent in purchasing local cigarettes (Philip Morris and Marlboro cigarettes), to resell
them to several stores, to give her commission corresponding to 40% of the profits; and to return the
aforesaid amount of offended party, but said accused, far from complying her aforesaid obligation,
and once in possession thereof, misapplied, misappropriated and converted the same to her personal
use and benefit, despite repeated demands made upon her, accused failed and refused and still fails
and refuses to deliver and/or return the same to the damage and prejudice of the said ISIDORA
ROSALES, in the aforementioned amount and in such other amount as may be awarded under the
provision of the Civil Code.
CONTRARY TO LAW.
Petitioner Carmen Liwanag (Liwanag) and a certain Thelma Tabligan went to the house of complainant Isidora
Rosales (Rosales) and asked her to join them in the business of buying and selling cigarettes. Convinced of the
feasibility of the venture, Rosales readily agreed. Under their agreement, Rosales would give the money needed to
buy the cigarettes while Liwanag and Tabligan would act as her agents, with a corresponding 40% commission to her
if the goods are sold; otherwise the money would be returned to Rosales. Consequently, Rosales gave several cash
advances to Liwanag and Tabligan amounting to P633,650.00.
During the first two months, Liwanag and Tabligan made periodic visits to Rosales to report on the progress of the
transactions. The visits, however, suddenly stopped, and all efforts by Rosales to obtain information regarding their
business proved futile.
Alarmed by this development and believing that the amounts she advanced were being misappropriated, Rosales
filed a case of estafa against Liwanag.
After trial on the merits, the trial court rendered a decision dated January 9, 1991, finding Liwanag guilty as charged.
The dispositive portion of the decision reads thus:
The accused is likewise ordered to reimburse the private complainant the sum of P526,650.00,
without subsidiary imprisonment, in case of insolvency.
SO ORDERED.
Said decision was affirmed with modification by the Court of Appeals in a decision dated November 29, 1993, the
decretal portion of which reads:
WHEREFORE, in view of the foregoing, the judgment appealed from is hereby affirmed with the
correction of the nomenclature of the penalty which should be: SIX (6) YEARS, EIGHT (8) MONTHS
and TWENTY ONE (21) DAYS of prision mayor, as minimum, to FOURTEEN (14) YEARS and EIGHT
(8) MONTHS of reclusion temporal, as maximum. In all other respects, the decision is AFFIRMED.
SO ORDERED.
Her motion for reconsideration having been denied in the resolution of March 16, 1994, Liwanag filed the instant
petition, submitting the following assignment of errors:
Liwanag advances the theory that the intention of the parties was to enter into a contract of partnership, wherein
Rosales would contribute the funds while she would buy and sell the cigarettes, and later divide the profits between
them. 1 She also argues that the transaction can also be interpreted as a simple loan, with Rosales lending to her the
amount stated on an installment basis.2
While factual findings of the Court of Appeals are conclusive on the parties and not reviewable by the Supreme
Court, and carry more weight when these affirm the factual findings of the trial court, 3 we deem it more expedient to
resolve the instant petition on its merits.
Estafa is a crime committed by a person who defrauds another causing him to suffer damages, by means of
unfaithfulness or abuse of confidence, or of false pretenses of fraudulent acts.4
From the foregoing, the elements of estafa are present, as follows: (1) that the accused defrauded another by abuse of
confidence or deceit; and (2) that damage or prejudice capable of pecuniary estimation is caused to the offended party
Received from Mrs. Isidora P. Rosales the sum of FIVE HUNDRED TWENTY SIX THOUSAND AND
SIX HUNDRED FIFTY PESOS (P526,650.00) Philippine Currency, to purchase cigarrets (sic) (Philip &
Marlboro) to be sold to customers. In the event the said cigarrets (sic) are not sold, the proceeds of the
sale or the said products (shall) be returned to said Mrs. Isidora P. Rosales the said amount of
P526,650.00 or the said items on or before August 30, 1988.
(SGD &
Thumbedmarked)
(sic)
CARMEN
LIWANAG
26 H. Kaliraya St.
Quezon City
The language of the receipt could not be any clearer. It indicates that the money delivered to Liwanag was for a
specific purpose, that is, for the purchase of cigarettes, and in the event the cigarettes cannot be sold, the money must
be returned to Rosales.
Thus, even assuming that a contract of partnership was indeed entered into by and between the parties, we have
ruled that when money or property have been received by a partner for a specific purpose (such as that obtaining
in the instant case) and he later misappropriated it, such partner is guilty of estafa. 7
Neither can the transaction be considered a loan, since in a contract of loan once the money is received by the debtor,
ownership over the same is transferred. 8 Being the owner, the borrower can dispose of it for whatever purpose he
may deem proper.
In the instant petition, however, it is evident that Liwanag could not dispose of the money as she pleased because it
was only delivered to her for a single purpose, namely, for the purchase of cigarettes, and if this was not possible then
to return the money to Rosales. Since in this case there was no transfer of ownership of the money delivered, Liwanag
is liable for conversion under Art. 315, par. l(b) of the Revised Penal Code.
WHEREFORE, in view of the foregoing, the appealed decision of the Court of Appeals dated November 29, 1993, is
AFFIRMED. Costs against petitioner.
SO ORDERED.
1 Rollo, p. 20.
2 Ibid., p. 22.
7 Reyes, The Revised Penal Code, 1993, p. 675, citing People v. De la Cruz, G.R. No. 21732, September
3, 1924.