GR 44892; (May, 1938) (Digest)
G.R. No. 44892 ; May 31, 1938
THE PEOPLE OF THE PHILIPPINES, plaintiff-appellee, vs. SIMEON CAPULE, defendant-appellant.
FACTS
Simeon Capule, the president and manager of the Orient Protective Assurance Association (a mutual benefit association), diverted a portion of the association’s travelers’ accident fund between November 1934 and May 1935. The diverted funds were used to cover expenses for equipment, furniture, printing, and other association expenses, not for the payment of benefits to members. The funds were later paid back. He was convicted by the Court of First Instance of Manila for violating section 1628-E of the Revised Administrative Code and fined one hundred pesos.
ISSUE
1. Whether Capule, as president, is the responsible person liable for the violation of the law.
2. Whether the temporary use and subsequent repayment of the travelers’ accident fund for other association expenses constitutes a violation of section 1628-E.
3. Whether the penalty imposed was proper.
RULING
The Supreme Court affirmed the conviction.
1. On Responsibility: Under section 2743 of the Revised Administrative Code, the person “in charge of the association” is responsible for violations. The by-laws of the association designated the president, not the treasurer, as the person in charge. The diversion was made upon Capule’s order, making him liable.
2. On the Violation: The travelers’ accident fund is a relief fund under section 1628-E, which mandates that such funds and their accretions are available only for paying authorized benefits and expenses directly connected with the operation of the fund itself. Using the fund for general association expenses (e.g., furniture, equipment) violated the law, even if temporary and later repaid. The law’s intent, gleaned from related provisions (sections 1628-D, 1628-F, 1628-G), is to strictly protect benefit funds from any diversion.
3. On the Penalty: The penalty imposed (a fine of P100) was within the range prescribed by law (fine of not more than P500, or imprisonment of not more than six months, or both) under section 2743, and thus proper.
AI Generated by Armztrong.