LIWANAG v. CA

LIWANAG v. CA

G.R. No. 114398; October 24, 1997

Ponente: J. Romero

FACTS:

          Petitioner Carmen Liwanag and a certain Thelma Tabligan went to the house of complainant Isidora Rosales (Rosales) and asked her to join them in the business of buying and selling cigarettes. Convinced of the feasibility of the venture, Rosales readily agreed. Under their agreement, Rosales would give the money needed to buy the cigarettes while Liwanag and Tabligan would act as her agents, with a corresponding 40% commission to her if the goods are sold; otherwise the money would be returned to Rosales. Consequently, Rosales gave several cash advances to Liwanag and Tabligan amounting to P633,650.00

         

Alarmed that Liwanag was no longer visiting her regarding their business and believing that the amounts she advanced were being misappropriated, Rosales filed a case of estafa against Liwanag.

Liwanag advances the theory that the intention of the parties was to enter into a contract of partnership, wherein Rosales would contribute the funds while she would buy and sell the cigarettes, and later divide the profits between them.  She also argues that the transaction can also be interpreted as a simple loan, with Rosales lending to her the amount stated on an installment basis.      RTC found Liwanag guilty for the crime of estafa. The Court of Appeals affirmed the lower court’s decision

ISSUE:

          Whether Liwanag can be acquitted from the crime of estafa because she and Rosales formed a partnership

HELD:

          No, Liwanag could not be acquitted from the crime of estafa.

          The Supreme Court held that Estafa is a crime committed by a person who defrauds another causing him to suffer damages, by means of unfaithfulness or abuse of confidence, or of false pretenses or fraudulent acts.

          In the case at hand, even assuming that a contract of partnership was indeed entered into by and between the parties, we have ruled that when money or property have been received by a partner for a specific purpose (such as that obtaining in the instant case) and he later misappropriated it, such partner is guilty of estafa.