G.R. No. and Date: G.R. No. L-12743; August 25, 1917

FACTS:
R. B. Blackman, a surveyor in Pangasinan, orally employed Domingo Reyes to collect fees totaling P860 from twelve individuals for survey work performed. Reyes successfully collected P540. He delivered only P368 to Blackman, retaining P172. Blackman claimed the oral agreement granted Reyes a 10% commission on amounts collected, while Reyes contended he was entitled to a 20% commission on the total amount to be collected (P860). The trial court found that the agreement was for a 10% commission on collections and convicted Reyes of estafa.

ISSUE:
Whether Domingo Reyes is guilty of the crime of estafa for misappropriating the amount he retained from the collections.

RULING:
Yes, the Supreme Court affirmed the conviction. The Court upheld the trial court’s finding that the commission was 10% on amounts actually collected, not 20% on the total debt. Even assuming a 20% commission, Reyes was not entitled to withhold it in advance from the collections without an express stipulation. As an agent, Reyes was obligated under Article 1720 of the Civil Code to deliver all collections to his principal, Blackman. His right was limited to deducting his commission only from the amount actually collected and after the agency was terminated. By retaining P172, he misappropriated funds belonging to Blackman, satisfying all elements of estafa under Article 535, paragraph 5 of the Penal Code. The judgment of the lower court was affirmed.

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