LOURDES CHENG v. PEOPLE G.R. No. 207373, [March 23, 2022]

 CASE DIGEST

LOURDES CHENG v. PEOPLE 

G.R. No. 207373, [March 23, 2022]

FIRST DIVISION, GAERLAN, J.

 

Estafa (Art. 315(1)(b), RPC); Misappropriation/Conversion; Entrusted funds; Acquittal with civil liability

 

A mere failure to return entrusted funds does not automatically constitute estafa under Article 315(1)(b) of the RPC; the prosecution must prove misappropriation or conversion beyond reasonable doubt. If such element is not proven, acquittal follows, but civil liability may still be imposed if supported by preponderant evidence.

 

Lourdes Cheng, an employee of NAPOLCOM, was charged with estafa under Article 315(1)(b) for allegedly defrauding several private complainants by receiving money in trust/under obligation to return or account for it, but failing to do so. The RTC convicted her; the CA affirmed. Cheng elevated the case to the Supreme Court via Rule 45.

 

Whether Cheng is criminally liable for estafa under Article 315(1)(b) of the RPC—specifically, whether misappropriation or conversion was proven beyond reasonable doubt.

NO. Cheng was acquitted because the prosecution failed to prove misappropriation or conversion beyond reasonable doubt (reasonable doubt existed on that element).

Estafa under Art. 315(1)(b) requires proof of misappropriation or conversion. Non-return of money/property entrusted is not, by itself, equivalent to misappropriation or conversion; criminal conviction must rest on proof beyond reasonable doubt of that element.

 

Whether Cheng may still be held civilly liable despite acquittal.

YES. Despite acquittal, the Court found preponderant evidence to hold her civilly liable, ordering her to pay ₱691,912.81 plus legal interest.

Acquittal does not automatically erase civil liability. Where criminal liability fails for reasonable doubt (particularly on an element like misappropriation/conversion), the Court may still adjudge civil liability if the record shows preponderant evidence, to avoid unjust enrichment.

 CA and RTC rulings reversed; Cheng ACQUITTED of estafa; ordered to PAY ₱691,912.81 with interest: 12% p.a. from filing of the Information until June 30, 2013; 6% p.a. from July 1, 2013 until finality; then 6% p.a. from finality until full payment.

 

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