03 Tupaz IV and Tupaz V CA
03 Tupaz IV and Tupaz V CA
03 Tupaz IV and Tupaz V CA
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G.R. No. 145578. November 18, 2005.
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* FIRST DIVISION.
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400
CARPIO, J.:
The Case
1 2
This is a petition for review of the Decision of the Court of
Appeals dated 7 September 2000 and its Resolution dated
18 October 2000. The 7 September 2000 Decision affirmed
the ruling of the Regional Trial Court, Makati, Branch 144
in a case for estafa under Section 13, Presidential Decree
No. 115. The Court of Appeals Resolution of 18 October
2000 denied petitioners motion for reconsideration.
The Facts
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401
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[S]ince the civil action for the recovery of the civil liability is
deemed impliedly instituted with the criminal action, as in fact the
prosecution thereof was actively handled by the private prosecutor,
the Court believes that the El Oro Engraver Corporation and both
accused Jose C. Tupaz and Petronila Tupaz, jointly and solidarily
should be held civilly liable to the Bank of the Philippine Islands.
The mere fact that they were unable to collect in full from the AFP
and/or the Department of National Defense the proceeds of the sale
of the delivered survival bolos manufactured from the raw
materials
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404
404 SUPREME COURT REPORTS ANNOTATED
Tupaz IV vs. Court of Appeals
It is clear from [Section 13, PD 115] that civil liability arising from
the violation of the trust receipt agreement is distinct from the
criminal liability imposed therein. In the case of Vintola vs. Insular
Bank of Asia and America, our Supreme Court held that acquittal
in the estafa case (P.D. 115) is no bar to the institution of a civil
action for collection. This is because in such cases, the civil liability
of the accused does not arise ex delicto but rather based ex contractu
and as such is distinct and independent from any criminal
proceedings and may proceed regardless of the result of the latter.
Thus, an independent civil action to enforce the civil liability may
be filed against the corporation aside from the criminal action
against the responsible officers or employees.
xxx
[W]e hereby hold that the acquittal of the accused-appellants
from the criminal charge of estafa did not operate to extinguish
their civil liability under the letter of credit-trust receipt
arrangement with plaintiff-appellee, with which they dealt both in
their personal capacity and as officers of El Oro Engraver
Corporation, the letter of credit applicant and principal debtor.
Appellants argued that they cannot be held solidarily liable with
their corporation, El Oro Engraver Corporation, alleging that they
executed the subject documents including the trust receipt
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9 Ibid., p. 665.
405
VOL. 475, NOVEMBER 18, 2005 405
Tupaz IV vs. Court of Appeals
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406
406 SUPREME COURT REPORTS ANNOTATED
Tupaz IV vs. Court of Appeals
The Issues
11 Ibid., p. 11.
407
408
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409
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16 G.R. No. 74886, 8 December 1992, 216 SCRA 257. See Ong v. Court
of Appeals, supra note 15.
17 The clause reads: In consideration of the PRUDENTIAL BANK
AND TRUST COMPANY complying with the foregoing, we jointly and
severally agree and undertake to pay on demand to the PRUDENTIAL
BANK AND TRUST COMPANY all sums of money which the said
PRUDENTIAL BANK AND TRUST COMPANY may call upon us to pay
arising out of or pertaining to, and/or in any event connected with the
default of and/or non-fulfillment in any respect of the undertaking of the
aforesaid:
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411
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18 Prudential Bank v. Intermediate Appellate Court, supra note 16
(internal citations omitted).
19 Southern Motors, Inc. v. Barbosa, 99 Phil. 263 (1956).
20 Article 2059 (1) of the Civil Code provides: [E]xcussion shall not
take place:
412
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413
est earns 12% interest per annum from the time of the
filing of the Informations in the Makati Regional Trial
Court on 17 January 1984. Further, the total amount due
as of the date of the finality of this Decision will earn
interest at 18% per annum until fully paid since this was
the stipulated
24
rate in the applications for the letters of
credit.
The accounting of El Oro Corporations debts as of 23
January 1992, which the trial court used, is no longer
useful as it does not specify the amounts owing under each
of the trust receipts. Hence, in the execution of this
Decision, the trial court shall compute El Oro Corporations
total liability under each of the trust receipts dated 30
September 25
1981 and 9 October 1981 based on the following
formula:
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414
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415
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of Asia and America, No. L-73271, 29 May 1987, 150 SCRA 578) or
under Article 33 of the Civil Code based on fraud (Prudential Bank v.
Intermediate Appellate Court, supra note 16). The civil action under
Article 31 or Article 33 proceeds independently of the criminal action.
416
SO ORDERED.
o0o
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