TEOFISTO GUINGONA, JR., ANTONIO
MARTIN, and TERESITA SANTOS v.
CITY FISCAL FLAMINIANO, ASST. CITY FISCAL LOTA and CLEMENT DAVID
1984 /
Makasiar
David
invested several deposits with
the Nation Savings and Loan Association [NSLA]. He said that he was induced
into making said investments by an Australian national who was a close
associate of the petitioners [NSLA officials]. On March 1981, NSLA was
placed under receivership by the Central Bank, so David filed claims for
his and his sister’s investments.
On June 1981, Guingona and Martin, upon David’s request, assumed the bank’s obligation to David by executing a joint promissory
note. On July 1981, David
received a report that only a portion of
his investments was entered in the NSLA records.
On December
1981, David filed I.S. No. 81-31938
in the Office of the City Fiscal, which case was assigned to Asst. City Fiscal
Lota for preliminary investigation. David charged petitioners with estafa and violation of Central Bank
Circular No. 364 and related regulations on foreign exchange transactions.
Petitioners
moved to dismiss the charges against them for lack of jurisdiction because David's claims allegedly comprised a purely
civil obligation, but the motion was denied. After the presentation of
David's principal witness, petitioners
filed this petition for prohibition and injunction because:
a.
The
production of various documents showed that the transactions between David and NSLA were simple loans (civil
obligations which were novated when Guingona and Martin assumed them)
b.
David's
principal witness testified that the duplicate
originals of the instruments of indebtedness were all on file with NSLA.
A TRO was issued ordering the respondents to refrain from proceeding
with the preliminary investigation in I.S. No. 81-31938.
Petitioners’ liability is civil in nature, so respondents
have no jurisdiction over the estafa charge. TRO CORRECTLY ISSUED.
GENERAL
RULE: Criminal
prosecution may not be blocked by court prohibition or injunction.
EXCEPTIONS
1.
For the
orderly administration of justice
2.
To
prevent the use of the strong arm of the law in an oppressive and vindictive
manner
3.
To
avoid multiplicity of actions
4.
To afford
adequate protection to constitutional rights
5.
In proper cases, because the statute relied upon is unconstitutional
or was held invalid
When David invested his money on
time and savings deposits with NSLA, the contract that was perfected was a contract of simple loan or mutuum and not a contract of deposit. The
relationship between David and NSLA is that of creditor and debtor. While the Bank has the obligation to return
the amount deposited, it has no obligation to return or deliver the same money that was deposited. NSLA’s failure to return the amount
deposited will not constitute estafa through misappropriation, but it will
only give rise to civil liability
over which the public respondents have no jurisdiction.
Considering that petitioners’ liability is purely civil in
nature and that there is no clear
showing that they engaged in foreign exchange transactions, public
respondents acted without jurisdiction when they investigated the charges
against the petitioners. Public respondents should be restrained from further
proceeding with the criminal case for to allow the case to continue would work
great injustice to petitioners and would render meaningless the proper
administration of justice.
Even granting that NSLA’s failure
to pay the time and savings deposits would constitute a violation of RPC 315,
paragraph 1(b), any incipient criminal liability was deemed avoided. When NSLA
was placed under receivership, Guingona and Martin assumed the obligation to David,
thereby resulting in the novation of the
original contractual obligation. The original
trust relation between NSLA and David was converted into an ordinary
debtor-creditor relation between the petitioners and David. While it is
true that novation does not extinguish criminal liability, it may prevent the
rise of criminal liability as long as it occurs prior to the filing of the
criminal information in court.