GR 37602; (March, 1934) (Digest)
G.R. No. 37602 ; March 7, 1934
THE PEOPLE OF THE PHILIPPINE ISLANDS, plaintiff-appellee, vs. RAFAEL FERNANDEZ, defendant-appellant.
FACTS
The appellant, Rafael Fernandez, through F.C. Laing & Co., Ltd., purchased sugar from Compañia General de Tabacos de Filipinas for P112,450. On July 3, 1931, he delivered a check for that amount drawn on the National City Bank of New York. Upon delivery, his agent requested the payee’s representative not to deposit the check for a few days because Fernandez had not yet collected payment from his own buyer for the same sugar. The payee agreed. When the check was presented on July 9, 1931, payment was refused due to insufficient funds. At the time the check was issued on July 3, Fernandez’s account had only about P10,911.40, though he later deposited sufficient funds on July 7. However, the bank stopped payment on all his checks on July 8 after discovering that collateral he had pledged was forged.
ISSUE
Whether the appellant is guilty of estafa under Act No. 3313 (amending Article 535 of the old Penal Code) for issuing a check without sufficient funds.
RULING
No. The Supreme Court reversed the conviction and acquitted the appellant. The Court held that the element of deceit (dolo) required for estafa was absent. At the time the check was delivered, the payee was informed, through the request to hold the check, that the drawer’s account lacked sufficient funds to cover it at that moment. This disclosure negated the fraudulent intent. The transaction was thereby reduced to a mere civil obligation. The subsequent events, including the stop-payment order, were immaterial as the information charged the offense as committed on July 3, the date of the check’s issuance and delivery.
AI Generated by Armztrong.