G.R. No. L‑3838
November 16, 1907

PARTIES United States (plaintiff‑appellee) v. Agustín Fernández (defendant‑appellant)

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FACTS
1. In March 1904 Iloilo municipality enacted a resolution imposing a tax/levy for the cleaning of latrines, classifying properties into three rate bands.
2. By April 1904 the municipality leased the cleaning service to the lowest bidder, Agustín Fernández, for 1904; extensions granted for 1905 and 1906 with reduced rates.
3. In June 1906 the provincial board declared the tax illegal and null, suspending the contract.
4. The municipality never passed an ordinance compelling owners to use the municipal contractor, nor did it grant it an exclusive privilege. Private latrine‑cleaning enterprises were operating contemporaneously.
5. Fernández collected payments directly from property owners who voluntarily hired him; many of these owners were not listed on the municipal register and therefore were not obligated to pay the tax to the treasury.
6. The United States charged Fernández with estafa (estafa) alleging deceit/fraud in collecting such sums.

ISSUE
Whether the act of Fernández collecting payment for latrine‑cleaning services rendered, in the absence of a municipal monopoly or compulsory levy, constitutes estafa under Philippine criminal law.

RULING
– The Court held that estafa requires proof of deceit, fraud, or an attempt to defraud.
– No evidence showed that Fernández acted with deceit, malice, or intent to prejudice the municipality or the payors; the collections were payment for services actually rendered, not a municipal tax.
– Since the municipality had no exclusive right and owners were free to contract privately, Fernández’s receipt of fees was lawful and did not constitute estafa.
– Accordingly, the judgment of conviction was reversed, and the defendant was acquitted with costs awarded de oficio.

Concurrence: Chief Justice Arellano and Justices Johnson, Willard, and Tracey concurred.