G.R. No. 12502; September 6, 1917
THE UNITED STATES, plaintiff-appellee, vs. AGUSTIN DRILON, defendant-appellant.

FACTS:
On June 30, 1911, Agustin Drilon sold a piece of land under a pacto de retro to Roque Debuque for P200. Drilon failed to repurchase the property within the stipulated two-year period, resulting in Debuque’s consolidation of ownership. Drilon remained in possession as a lessee. While in possession and falsely representing himself as the owner, Drilon subsequently sold the same property to Gabriela Dinela for P450. Dinela purchased the property in good faith, unaware of the prior sale to Debuque. Drilon registered the deed of sale to Dinela, thereby destroying Debuque’s title and causing him to lose the property.

ISSUE:
Whether Drilon is guilty of estafa under Article 537 of the Penal Code for alienating real property by pretending to be its owner, even though the deceit was directed at the second purchaser (Dinela) while the damage was suffered by the first purchaser (Debuque).

RULING:
Yes, Drilon is guilty of estafa under Article 537 of the Penal Code. The Supreme Court affirmed the lower court’s conviction, citing Spanish jurisprudence (Viada) which holds that the crime is committed when a person, pretending to be the owner, alienates property, regardless of whether the direct victim of the deceit is different from the party who suffers damage. The deceit practiced on the second purchaser (Dinela) and the resulting damage to the first purchaser (Debuque) satisfy the elements of the crime. The Court modified the penalty by ordering Drilon to indemnify Debuque in the amount of P200 plus lawful interest from June 30, 1913, with subsidiary imprisonment in case of insolvency, and reduced the fine from P540 to P200. The judgment was affirmed with costs against the appellant.

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