GR 146641; (November, 2002) (Digest)
G.R. No. 146641-43 November 18, 2002
People of the Philippines, plaintiff-appellee, vs. Rica G. Cuyugan, accused-appellant.
FACTS
Accused-appellant Rica G. Cuyugan was charged with three counts of estafa under Article 315, paragraph 2(d) of the Revised Penal Code. The informations alleged that on various dates in May 1994, in Pasay City, she defrauded complainants Rodrigo and Norma Abagat by issuing postdated checks (totaling P855,000 across three transactions) in exchange for cash, knowing at the time of issuance that her account was closed or had insufficient funds. The checks were dishonored upon presentment for the reasons “Account Closed” or “Drawn Against Insufficient Funds.” The cases were consolidated. The prosecution presented the Abagat spouses, who testified they gave appellant money due to her dire need for funds to buy supplies for the Armed Forces, with the checks issued as cover. The defense presented appellant, who testified the transactions were for a partnership where the Abagats invested in her supply projects with the Philippine Army, and the checks were issued as proof of investment or guarantees. She also claimed she had made partial payments. The Regional Trial Court found her guilty beyond reasonable doubt on each count and sentenced her to imprisonment and indemnity.
ISSUE
Whether the trial court erred in finding accused-appellant Rica G. Cuyugan guilty beyond reasonable doubt of three counts of estafa.
RULING
The Supreme Court reversed and set aside the trial court’s judgment. Appellant was acquitted for lack of sufficient evidence to prove fraud beyond reasonable doubt. The Court found that the prosecution failed to establish the element of fraud or deceit. The evidence indicated the transactions were in the nature of a loan or investment in a business venture, and the issuance of the checks was a guarantee for the return of the money, not a fraudulent act executed prior to or simultaneously with the fraud. However, the Court found appellant civilly liable. It ordered her to pay the complainants the balance of her obligation in the amount of P430,000 (the difference between the total amount of P855,000 and the P425,000 she had paid) plus interest of twelve percent (12%) per annum until fully paid.