G.R. No. 150618 ; July 24, 2003
Evangeline Cabrera, Petitioner, vs. People of the Philippines and Luis Go, Respondents.

FACTS

Petitioner Evangeline Cabrera was charged with three counts of violating B.P. Blg. 22 (Bouncing Checks Law). The charges stemmed from three postdated Prudential Bank checks she issued to Boni Co, who used them to pay for construction materials purchased from private respondent Luis Go. The checks, issued in April 1992 with varying maturity dates, were subsequently deposited by Go in August 1992. All checks were dishonored by the drawee bank with the notation “Account Closed.” Despite notice of dishonor and demands, Cabrera failed to make the checks good. The Regional Trial Court convicted Cabrera, and the Court of Appeals affirmed the conviction.
Cabrera’s defense, supported by Co’s testimony, was that the checks were issued as security or guarantee for Co’s purchases under a credit arrangement with Go. She claimed there was an understanding that Co would pay in cash upon selling the merchandise, and the checks would be returned. She argued she had no knowledge that the checks would be presented for payment, as they were merely meant to secure the obligation, and that her account was closed only after the checks’ stated dates due to bank charges.

ISSUE

Whether the prosecution proved beyond reasonable doubt all elements of violation of B.P. Blg. 22, particularly the element of knowledge of insufficiency of funds at the time of check issuance.

RULING

The Supreme Court ACQUITTED Evangeline Cabrera. The Court reversed the lower courts’ decisions, finding that the prosecution failed to prove her guilt beyond reasonable doubt for violations of B.P. Blg. 22. The legal logic centered on the essential element of knowledge of insufficiency of funds. For a conviction under B.P. Blg. 22, the prosecution must prove that the accused knew at the time of check issuance that she did not have sufficient funds in or credit with the drawee bank for the payment of the check in full upon its presentment.
The Court found that the checks were issued in April 1992 as security for a credit transaction, with maturity dates ranging from May to July 1992. The prosecution’s own evidence showed that as of July 31, 1992, Cabrera’s account had a balance of ₱700.00, and it was only on August 4, 1992—after the checks’ stated dates and after they were belatedly deposited—that the account was closed with a minimal remaining balance applied to bank charges. The prosecution failed to establish that Cabrera knew her funds were insufficient at the precise time of issuance in April. The fact of “Account Closed” upon presentment in August did not equate to knowledge of insufficiency in April. The obligation arising from the dishonored checks was converted into a civil liability. The Court thus ordered Cabrera to pay the face value of the checks with 12% annual interest from the filing of the Informations until finality, and 12% interest per annum on the total sum until fully paid.