G.R. No. 114398 October 24, 1997
Carmen Liwanag, petitioner, vs. The Hon. Court of Appeals and The People of the Philippines, represented by the Solicitor General, respondents.

FACTS

Petitioner Carmen Liwanag and Thelma Tabligan proposed to complainant Isidora Rosales a business venture involving the buying and selling of cigarettes. Under their agreement, Rosales would provide the capital, while Liwanag and Tabligan would act as her agents, with Rosales entitled to a 40% commission if the goods were sold; otherwise, the money would be returned to her. Rosales gave several cash advances totaling P633,650.00. After initial periodic reports, Liwanag and Tabligan ceased communication. Believing misappropriation, Rosales filed an estafa case against Liwanag. The Regional Trial Court found Liwanag guilty, a decision affirmed with modification by the Court of Appeals. Liwanag petitioned, arguing the transaction was either a simple loan or a partnership/joint venture, making the non-return of money purely civil.

ISSUE

Whether the transaction between Liwanag and Rosales constitutes a contract of partnership or a simple loan, thereby negating criminal liability for estafa.

RULING

The Supreme Court affirmed the conviction for estafa. The receipt signed by Liwanag explicitly stated the money was received to purchase specific cigarettes, and if not sold, the amount or items were to be returned. This created an obligation to return the money or the specific items, indicating the money was delivered for a specific purpose without transfer of ownership. Even if a partnership existed, a partner who receives money for a specific purpose and misappropriates it is guilty of estafa. The transaction cannot be a loan, as a loan involves transfer of ownership, allowing the borrower to dispose of the money freely, which was not the case here. The elements of estafa—defrauding another by abuse of confidence and causing pecuniary damage—were present.