G.R. No. 132323; July 20, 2000
THE PEOPLE OF THE PHILIPPINES, plaintiff-appellee, vs. ERNST GEORG HOLZER and MERCIDITA D. ALBISO, accused-appellants.

FACTS

Accused-appellants, owners of MGF Electronics, installed a satellite antenna for complainant Bernhard Forster. Dissatisfied, Forster was promised a replacement. On June 1, 1995, appellant Holzer informed Forster that new equipment had arrived but he needed ₱100,000 to secure its release from customs. Forster agreed, issuing a check for said amount. In exchange, appellants issued a postdated check (August 1, 1995) for ₱100,000, which they both signed. Before its due date, Holzer requested Forster to defer deposit. Forster deposited the check on August 9, 1995, and it was dishonored for insufficient funds. Appellants were subsequently charged with estafa under Article 315(2)(d) of the Revised Penal Code and convicted by the trial court.

ISSUE

Whether accused-appellants are guilty beyond reasonable doubt of the crime of estafa under Article 315(2)(d) of the Revised Penal Code.

RULING

No. The Supreme Court acquitted appellants, finding the element of deceit not proven beyond reasonable doubt. For estafa under this provision, deceit must be the efficient cause of defraudation, inducing the victim to part with his money. The Court found the check was not issued to induce the loan but was given after the loan was consummated. The evidence showed Forster parted with his ₱100,000 based on Holzer’s verbal request for a loan to claim equipment, not because of the check. The check was issued contemporaneously as a form of payment or security for the repayment of an already existing obligation. The subsequent dishonor established civil liability for the debt, but not the criminal fraud essential for estafa. The transaction was a simple loan, and the issuance of a bum check for a pre-existing obligation does not constitute estafa. The Court set aside the conviction but ordered appellants to pay ₱100,000 as actual damages to Forster.