Professional Documents
Culture Documents
VACA VS. CA
Facts:
Eduardo Vaca is the president and owner of Ervine International while Fernando Nieto, Vacas son-in-law, is
the firms purchasing manager. They issued a check for P10,000 to the General Agency for Reconnaissance,
Detection and Security (GARDS) and drawn against China Bank. When deposited with PCIBank, the check was
dishonored for insufficiency of funds. GARDS sent a demand letter but the drawers failed to pay within the
time given (7 days from notice). A few days later, however, Vaca issued a check to GARDS for P19,866.16,
drawn against Associated Bank, replacing the dishonored check. GARDS did not return the dishonored check.
Later on, GARDS Acting Operations Manager filed a criminal suit against Vaca and Nieto for violation of BP 22.
The trial court sentenced each to 1 year imprisonment and to pay a fine of P10,000 and costs.
Issue [1]:
Whether the drawers had knowledge of insufficient funds in issuing the check.
Held [1]: Section 2 of BP 22 provides a presumption of knowledge of insufficiency of funds if the drawer fails
to maintain sufficient funds within 90 days after the date of the check, or to make arrangement for payment in
full by the drawee of such check within 5 days after receiving notice that such check has not been paid by the
drawee. Herein, the second check supposedly replacing the dishonored check is actually the payment of two
separate bills, and was issued 15 days after notice. Such replacement cannot negate the presumption that
the drawers knew of the insufficiency of funds.
Issue [2]: Whether the absence of damages incurred by the payee absolves the drawers from liability.
Held [2]: The claim that the case was simply a result of a misunderstanding between GARDS and the
drawers and that the security agency did not suffer any damage from the dishonor of the check is flimsy.
Even if the payee suffered no damage as a result of the issuance of the bouncing check, the damage to the
integrity of the banking system cannot be denied. Damage to the payee is not an element of the crime
punished in BP 22.
Note: In this case, the Court recognized the contribution of Filipino entrepreneurs to the national economy;
and that to serve the ends of criminal justice, instead of the 1 year imprisonment, a fine of double the amount
of the check involved was imposed as penalty. This was made to redeem valuable human material and
prevent unnecessary deprivation of personal liberty and economic usefulness with due regard to the
protection of the social order
Yulo v People
Facts:
Ratio
1. Sec 16 Art 3 of Bill of Rights: All persons shall have the right to a speedy disposition of their
cases before all judicial, quasi judicial, or admin bodies under this provision, any party to a a
case has the right to demand on all officials tasked with the administration of justice to expedite
its disposition. However, the concept of speedy disposition is a relative term and must
necessarily be a flexible concept. A mere mathematical reckoning of the time involved is not
sufficient. In applying the Consti guarantee, particular regard must be taken of the facts and
circumstances of each case.
2. The right to a speedy disposition of a case, like the right to speedy trial, is deemed violated
only a) when the proceedings are attended by vexatious, capricious, and oppressive delays, or
b) when unjustified postponements of the trial are asked for and secured, or c) when without
cause or justifiable motive a long period of time is allowed to elapse without the party having
his case tried.
3. The following factors must be considered: a) length of delay b) reasons for such delay c)
assertion or failure to assert such right by the accused d) prejudice caused by the delay
4. In this case, the delay was sufficiently explained. The ponente retired during the pendency of
the MR which was filed in March 1997. The case was assigned to Assoc Justice Dadole on Feb
2000. And then she resolved the motion within 2 weeks. Thus, there was no violation!
(Not important) Issue: WON the CA erred in holding Yulo guilty beyond reasonable doubt. No
1. The elements were all proven (making or issuance of a check, knowledge that he has no/
insufficient funds, subsequent dishonor).
2. Findings of lower court and affirmed in toto by CA are entitled to great weight
Facts:
Petitioner obtained from Presas a loan of P450,000, for which the petitioner issued as
payment three postdated PhilBank checks. The three checks were all payable to cash. Presas
testified she did not deposit the checks on their due dates upon petitioners request and
assurance that they would be replaced with cash. When she could not wait any longer, Presas
deposited Check Nos. 026138 and 026124 in her Westmont Bank account, only to be notified
later that the checks were dishonored because the account had been closed. Presas said she
did not deposit Check No. 026137 after she agreed to petitioners request to withhold its
deposit as it had not yet been funded. After receiving notice that Check Nos. 026138 and
026124 had been dishonored, Presas immediately informed petitioner thereof and demanded
payment for the value of the checks. This demand, however, went unheeded.
Issue:
Is petitioner guilty of a violation of BP 22?
Ruling:
NO. B.P. Blg. 22 punishes as malum prohibitum the mere issuance of a worthless
check, provided the other elements of the offense are proved. Section 1 enumerates the
elements of B.P. Blg. 22, as follows: (1) the making, drawing, and issuance of any check to
apply on account or for value; (2) the knowledge of the maker, drawer, or issuer that at the
time of issue he does not have sufficient funds in or credit with the drawee bank for the
payment of the check in full upon its presentment; and (3) the subsequent dishonor of the
check by the drawee bank for insufficiency of funds or credit or dishonor for the same reason
had not the drawer, without any valid cause, ordered the bank to stop payment.
Upon careful examination of the records, however, the Court found that only the first
and third elements have been established by the prosecution. By her own admission,
petitioner issued the three subject checks, two of which were presented to PhilBank but were
dishonored and stamped for the reason Account Closed. Under Section 3 of B.P. Blg. 22, the
introduction in evidence of the dishonored check, having the drawees refusal to pay stamped
or written thereon, or attached thereto, with the reason therefor as aforesaid shall be prima
facie evidence of the making or issuing of the said checks and the due presentment to the
drawee for payment and the dishonor thereof, and that the same was properly dishonored for
the reason written, stamped or attached thereto by the drawee on such dishonored checks.
As to the second element, Section 2 of B.P. Blg. 22 creates the presumption that the issuer of
the check was aware of the insufficiency of funds when he issued a check and the bank
dishonored it. This presumption, however, arises only after it is proved that the issuer had
received a written notice of dishonor and that, within five days from receipt thereof, he
failed to pay the amount of the check or to make arrangements for its payment.
Ordinarily, preponderance of evidence is sufficient to prove notice. But in criminal cases, the
quantum of proof required is proof beyond reasonable doubt. In the instant case, the
prosecution merely presented a copy of the demand letter allegedly sent to petitioner
through registered mail and the registry return card. There was no attempt to authenticate or
identify the signature on the registry return card. All that we have on record is an illegible
signature on the registry receipt as evidence that someone received the letter. As to whether
this signature is that of petitioner or her authorized agent remains a mystery. Receipts for
registered letters and return receipts do not by themselves prove receipt; they must be
properly authenticated to serve as proof of receipt of the letters, claimed to be a notice of
dishonor. Unfortunately, the prosecution presented only the testimony of Presas to prove
mailing and receipt of the demand letter
Petitioner Mitra was the treasurer and Cabrera (now deceased) was the President of Lucky Nine Credit Corporation
(LNCC), a corporation engaged in money lending activities. Private respondent Felicisimo Tarcelo (Tarcelo) invested money in
LNCC. As the usual practice in money placement transactions, Tarcelo was issued checks equivalent to the amounts he invested
plus the interest on his investments.
When Tarcelo presented the checks for payment, they were dishonored for the reason "account closed." Tarcelo
made several oral demands on LNCC for the payment of said checks but he was frustrated. So he filed seven information for
violation of Batas Pambansa blg. 22 (BP 22) in the amount of P925,000.00 before the MTCC. Court decided in favor if Tarcelo.
So petitioners appealed to RTC contending that : They signed the seven checks in blank with no name of the payee, no
amount stated and no date of maturity; that they did not know when and to whom those checks would be issued; that the
seven checks were made to sign at that time; and that they signed the checks so as not to delay the transactions of LNCC
because they did not regularly hold office there. Petition was still denied. Meanwhile Cabrera died. Mitra alone file a petition
for review claiming among others, that there was no Notice of Dishonor on her. CA denied for lack of merit, hence this petition;
ISSUE(S):
1. WON the elements of violation of BP 22 must be proved beyond reasonable doubt as against the corporation who carries the
account where the subject checks were drawn before liability attaches to the signatories.
2. WON there is proper service of Notice of Dishonor and demand to pay to the petitioner and the late Cabrera.
HELD:
Petition DENIED.
The convenience afforded by checks is damaged by unfunded checks that adversely affect confidence in commercial
and banking activities, and ultimately injure public interest.
1. NO. The 3rd paragraph of sec.1 of BP 22 reads: "Where the check is drawn by a corporation, company or entity, the person
or persons who actually signed the check in behalf of such drawer shall be liable under this act." This provision recognizes the
reality that a corporation can only act through its officers. Hence its wording is unequivocal and mandatory that the person who
actually signed the corporate check shall be held liable for violation of BP 22. This provision does not contain any condition,
qualification or limitation.
2. Yes. There is no dispute that Mitra signed the checks and that the bank dishonored the checks because the account had been
closed. Notice of Dishonor was properly given, but Mitra failed to pay the checks or make arrangements for their payment
within 5 days from notice. (Cite elements of violation of BP22) With all the above elements duly proven, Mitra cannot escape
the civil and criminal liabilities that BP 22 imposes for its breach.
Llamado vs ca
Yolanda Floro sold a loose diamond stone valued at P420,000.00 to Joy Lee Recuerdo.
As payment for the diamond, Recuerdo gave P40,000 as downpaymentand issued 9
postdated checks. When Floro tried to deposit eight checks, only three were cleared and
the other five were dishonored due to the closure of Recuerdos account. Recuerdo
promised to convert the checks into cash but she welshed on it A demand letter was sent
to Recuerdo but she still failed to comply with her obligation. This prompted Floro
to file at the Metropolitan Trial Court (MeTC) five informations against Recuerdo for
violation of B.P. 22. Recuerdo was found guilty beyond reasonable doubt of violation of
B.P. 22 and was sentenced to suffer imprisonment of 30 days for each count and to
restitute the amount of P200,000 to Floro. The decision was affirmed by the Regional
Trial Court (RTC) and later on, by the Court of Appeals (CA).
ISSUE:
Whether or not Recuerdo is guilty beyond reasonable doubt for violation of B.P. 22
HELD:
Recuerdo contends that since banks are not damaged by the presentment of dishonored
checks as they impose a penalty for each, only creditors/payees are unduly favored by
the law; that the law is in essence a resurrected form of 19th century imprisonment for
debt since the drawer is coerced to pay his debt on threat of imprisonment even if his
failure to pay does not arise from malice or fraud or from any criminal intent to cause
damage; and that the law is a bill of attainder as it does not leave much room for judicial
determination, the guilt of the accused having already been decided by the legislature.
These matters subject of Recuerdos contention have long been settled in the landmark
case of Lozano v. Martinez where the Court upheld the constitutionality of B. P. 22: the
gravamen of the offense punished by BP 22 is the act of making and issuing a
worthless check or a check that is dishonored upon its presentation for payment. It is
not the non-payment of an obligation which the law punishes. The law is not intended or
designed to coerce a debtor to pay his debt. The thrust of the law is to prohibit, under
pain of penal sanctions, the making of worthless checks and putting them in circulation.
Because of its deleterious effects on the public interest, the practice is proscribed by law.
The law punishes the act not as an offense against property, but an offense against
public order. The contention that B. P. 22 is a bill of attainder, one which inflicts
punishment without trial and the essence of which is the substitution of a legislative for
a judicial determination of guilt, fails. For under B. P. 22, every element of the crime is
still to be proven before the trial court to warrant a conviction for violation thereof.
Recuerdo argues that as no bank representative testified as to whether the questioned
checks were dishonored due to insufficiency of funds (sic), such element was not clearly
and convincingly proven, hence, the trial court failed to uphold her right to presumption
of innocence when she was convicted based on the sole testimony of Yolanda. Yolandas
testimony that when she deposited the checks to her depository bank they were
dishonored due to Account Closed sufficed. In fact, even Recuerdos counsel during
trial admitted the dishonor, and on that ground. In fine, the affirmance of
Recuerdos conviction is in order. In the case at bar, the Court notes that no proof, nay
allegation, was proffered that Recuerdo was not a first time offender. Considering this
and the correctness of the case, it would best serve the interests of justice if Recuerdo is
just fined to enable her to continue her dental practice so as not to deprive her of her
income, thus insuring the early settlement of the civil aspect of the case, not to mention
the FINE.
Summary of Doctrines:
1. To secure the conviction in BP 22, a WRITTEN NOTICE of dishonour is required.
2. The law does not presume that the offender knows of the FACT OF DISHONOR from merely
making an instrument without value. As such, the accused is still entitled to notice of such
dishonour.
Facts:
Petitioner approached Ignacio Garcia, an Assistant Vice President of METROBANK, to ask for financial
assistance. Garcia accommodated petitioner and gave the latter a loan in the sum of P573,800.00. In
exchange, petitioner issued and delivered to the complainant 18 postdated checks for the repayment of
the loan. When the checks were, in time, deposited, the instruments were all dishonored by the drawee
bank for this reason: Account closed. The complainant demanded payment allegedly by calling up
petitioner at her office. Failing to receive any payment for the value of the dishonored checks, the
complainant referred the matter to his lawyer who supposedly wrote petitioner a letter of demand but that
the latter ignored the demand. (Note: the said demand letter was not presented as evidence) Hence, 18
cases for the violation of BP 22 were filed against Domagsang.
There was no proper written letter of demand served upon her person, thus she must not be charged for
the violation of BP 22. According to Domagsang, even if she was informed of the dishonour by Garcia
through a telephone call, the same is not sufficient to convict her.
SC Ruling:
On the question of whether or not lack of written letter of demand will acquit her from the criminal
violation, the SC ruled in the positive. Note: SC enumerated some provisions of BP 22. For further
reading, please see Sections. 1 3.
Ratio / Doctrine:
To secure conviction for the vilation of BP 22, the prosecution must establish the fact that the
check was dishonoured AND that the accused has been notified in writing of the fact of
dishonour.
While, indeed, Section 2 of B.P. 22 does not state that the notice of dishonor be in writing, taken in
conjunction, however, with Section 3 of the law, i.e., "that where there are no sufficient funds in or credit
with such drawee bank, such fact shall always be explicitly stated in the notice of dishonor or refusal," a
mere oral notice or demand to pay would appear to be insufficient for conviction under the law.
The Court is convinced that both the spirit and letter of the Bouncing Checks Law would require for the
act to be punished thereunder not only that the accused issued a check that is dishonored, but that
likewise the accused has actually been notified in writing of the fact of dishonour.
Evidently, the appellate court did not give weight and credence to the assertion that a demand letter was
sent by a counsel of the complainant because of the failure of the prosecution to formally offer it in
evidence. Courts are bound to consider as part of the evidence only those which are formally offered,for
judges must base their findings strictly on the evidence submitted by the parties at the trial. Without the
written notice of dishonor, there can be no basis, considering what has heretofore been said, for
establishing the presence of "actual knowledge of insufficiency of funds.
Related Doctrine:
There is no prima facie presumption of the knowledge of dishonour in BP 22, thus notice of
dishonour (written) is required to secure conviction.
(1) the making, drawing and issuance of any check to apply for account or for value;
(2) the knowledge of the maker, drawer, or issuer that at the time of issue he does not have sufficient
funds in or credit with the drawee bank for the payment of the check in full upon its presentment;
and
(3) the subsequent dishonor of the check by the drawee bank for insufficiency of funds or credit or
dishonor for the same reason had not the drawer, without any valid cause, ordered the bank to
stop payment.
There is deemed to be a prima facie evidence of knowledge on the part of the maker, drawer or issuer of
insufficiency of funds in or credit with the drawee bank of the check issued if the dishonored check is
presented within 90 days from the date of the check and the maker or drawer fails to pay thereon or to
make arrangement with the drawee bank for that purpose.
The statute has created the prima facie presumption evidently because "knowledge" which involves a
state of mind would be difficult to establish. The presumption does not hold, however, when the maker,
drawer or issuer of the check pays the holder thereof the amount due thereon or makes arrangement for
payment in full by the drawee bank of such check within 5 banking days after receiving notice that such
check has not been paid by the drawee bank.
Section 2 of B.P. Blg. 22 clearly provides that this presumption arises not from the mere fact of drawing,
making and issuing a bum check; there must also be a showing that, within five banking days from receipt
of the notice of dishonor, such maker or drawer failed to pay the holder of the check the amount due
thereon or to make arrangement for its payment in full by the drawee of such check.
It has been observed that the State, under this statute, actually offers the violator a compromise by
allowing him to perform some act which operates to preempt the criminal action, and if he opts to perform
it the action is abated. This was also compared to certain laws allowing illegal possessors of firearms a
certain period of time to surrender the illegally possessed firearms to the Government, without incurring
any criminal liability. In this light, the full payment of the amount appearing in the check within five banking
days from notice of dishonor is a complete defense. The absence of a notice of dishonor necessarily
deprives an accused an opportunity to preclude a criminal prosecution. Accordingly, procedural due
process clearly enjoins that a notice of dishonor be actually served on petitioner. Petitioner has a
right to demand and the basic postulates of fairness require that the notice of dishonor be
actually sent to and received by her to afford her the opportunity to avert prosecution under B.P.
Blg. 22.
The trial court found him guilty and was ordered to pay FEDCOR the Court of Appeals
affirmed the decision in toto.
OFELIA MARIGOMEN vs. PEOPLE OF THE PHILIPPINES. G.R. No. 153451. May
26, 2005.
FACTS:
Caltex sold their gas and oil to INSURECO through postdated checks. Petitioner was
the finance officer who was authorized to sign checks against INSURECO. Three
checks were dishonored due to insufficient funds. After Caltex made demands to
INSURECO, which was unheeded, they filed a complaint against petitioner for violation
of BP 22.
Petitioner contends that while she had drawn and signed the checks she was not an
employee anymore at the purchase of the products. She did not receive any telegrams
or notice of the dishonored checks. The lower ruled in favor of Caltex.
RULING:
The SC ruled in favor of petitioner and acquitted her. Caltex did not prove that petitioner
knew that there were insufficient funds when she drew and signed those checks. Also
the notice of dishonor should be in writing and not a verbal notice. The SC also said that
if the drawer or maker is an officer of a corporation, the notice of dishonor to the said
corporation is not notice to the employee or officer who drew or issued the check for
and in its behalf. Prosecution also failed to prove that petition receive those notices of
dishonor.