G.R. No. L-9268; October 30, 1914

FACTS:
Joaquin Lorenzo Uy Yjo bribed Customs Inspector Fred C. Bruhez with P3,500 (in seven P500 bills) to facilitate the illegal importation of opium. The bribery was discovered, and both were arrested. The money was seized from Bruhez and presented as evidence in the criminal case against Uy Yjo, who was convicted. The money remained with the court for use in the separate trial of Bruhez, but Bruhez escaped, and the case against him was later dismissed. Ignacio Velasco then filed a petition in the Court of First Instance of Manila to recover the P3,500. Velasco claimed that Uy Yjo was his confidential employee and, without his knowledge or consent, drew a check on Velasco’s bank account to obtain the identical bills used as a bribe. Velasco asserted he was the rightful owner, was innocent of the crime, and was entitled to recover the money under Article 62 of the Penal Code. The trial court denied the petition, holding it lacked jurisdiction to award the money to Velasco and instead determined it should be turned over to the Collector of Customs for confiscation. Velasco appealed.

ISSUE:
Whether the trial court has jurisdiction to determine the ownership and proper disposition of the P3,500 used as a bribe in the commission of a crime (illegal importation of opium), and whether such determination should be made pursuant to the Penal Code or by the Collector of Customs under customs laws.

RULING:
The Supreme Court ruled that the trial court has jurisdiction and the duty to determine the ownership and disposition of the money. The P3,500, as the instrument used to bribe a public official to commit the crime of illegal importation, falls under the provisions of Articles 25 and 62 of the Penal Code. Article 62 mandates the forfeiture of the instruments of the crime, “unless they be the property of a third person not liable for the offense.” Therefore, the court trying the criminal case has the ancillary jurisdiction to resolve claims of ownership over such instruments. The Court found no statutory authority vesting the Insular Collector of Customs with the power to seize and confiscate money used as a bribe; the Collector’s forfeiture powers are limited to illegally imported merchandise. The order of the trial court was set aside. The case was remanded to the Court of First Instance with instructions to hear and determine the issues regarding the ownership of the P3,500 based on the evidence, without the Supreme Court expressing an opinion on the merits of Velasco’s claim.