G.R. No. L-4265

THE UNITED STATES, plaintiff-appellee, vs. LUIS PASCUAL, defendants-appellant.

March 26, 1908

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FACTS:
The appellant, Luis Pascual, was convicted of the crime of estafa under paragraph 5 of article 535 of the Penal Code. It was proven beyond a reasonable doubt that Pascual appropriated the sum of P310, which had been entrusted to and received by him with the obligation of delivering it to a third person, causing prejudice to the complaining witness.

ISSUE:
Whether “deceit with intent to defraud” in obtaining the money is an essential element of estafa as defined and penalized in paragraph 5 of article 535 of the Penal Code.

RULING:
No. The Supreme Court affirmed the conviction, holding that “deceit with intent to defraud” in obtaining the money or other personal property afterwards misappropriated is not an essential requisite for estafa under paragraph 5 of article 535 of the Penal Code.

The Court explained that this particular class of estafa contemplates cases where the money or property has been voluntarily entrusted to the offender, without any wrongdoing on his part in obtaining or receiving it. The fraud arises from the subsequent abuse of confidence through the appropriation or misapplication of the funds or property after they have lawfully come into the offender’s possession. While “deceit with intent to defraud” is generally a requisite for other forms of estafa, it is not for those involving an abuse of confidence as specified in paragraph 5, where the intent to defraud manifests in the act of misappropriation itself. The Court clarified previous rulings, stating they referred to other classes of estafa or that the finding of deceit in those cases was specific to the evidence presented, not a universal requirement for all estafas, particularly not for those under paragraph 5.