CRIMINAL LAW>Estafa>Elements of Estafa
ZENAIDA LAYSON VDA. DE MANJARES , Petitioner v. PEOPLE OF THE
PHILIPPINES, Respondent.
G.R. No. 207249, May 14, 2021
(Second Division)
FACTS: An Information for estafa was filed against Zenaida. It was alleged that she re-
ceived in trust or administration from Ballesteros Jr. various appliances, furnitures, mo-
torcycles, and other similar products for the purpose of selling the same on consignment
basis, under the express obligation of turning over and/or deposit to the bank the next
banking day the proceeds of the said items, if sold, or return them, if not sold, to Balles-
teros Jr., but once in possession of the said items and far from complying with her obli-
gation aforesaid, Zenaida, with abuse of confidence, did then and there willfully, unlaw -
fully and feloniously misappropriate, misapply and convert the said amount to her per -
sonal use and benefit and despite repeated demands to remit the proceeds of the sale.
During the arraignment, Zenaida pleaded not guilty. The private prosecutor then filed a
manifestation, reserving the right of the complainant Ballesteros, Jr. to institute a sepa-
rate civil action for damages.
Based on the testimonies of both Zenaida and Ballesteros, the former was initially en-
gaged in the business of buying-and-selling of appliances, furniture, and other products.
She would buy from Ballesteros' business Alson's Trading in Iriga City - around once a
month. Because she had become a regular customer, she and Ballesteros had an
agreement that her store would be used to establish Alson's Polangui and that she
would be its branch manager. Ballesteros narrated in his testimony that he visited Al-
son's Polangui one time and he did not find any cash there. He grew suspicious, so he
asked Pan to conduct a preliminary audit. The preliminary audit revealed a shortage of
around P65,000.00 per month of operation. He confronted Zenaida about this, and she
allegedly promised to pay the shortages back within 15 days. Meanwhile, Ballesteros
asked Pan to conduct an audit of the branch's entire operation from September 12,
1996 to October 4, 1998. Based on Pan's audit, Zenaida's total accountability was al-
legedly P730,811.59. The above audit conducted by Pan became the basis of Zenaida's
accountabilities, and subsequently, of the criminal charge against her. The RTC issued
the judgment finding Zenaida guilty of the crime charged. On appeal, the CA affirmed
the decision of the RTC. Hence, the instant appeal.
ISSUE: Whether or not the elements of estafa are present.
RULING: No. The first two elements of estafa are not present. Anent the first element,
when "the money, goods, or any other personal property is received by the offender
from the offended party (1) in trust or (2) on commission or (3) for administration, the of -
fender acquires both material or physical possession and juridical possession of the
thing received. The court found that Zenaida only had material possession, and not ju-
ridical possession, of the goods delivered to her for sale in Alson's Polangui. As to the
second element, the words "convert" and "misappropriate" connote an act of using or
disposing of another's property as if it were one's own, or of devoting it to a purpose or
use different from that agreed upon. To misappropriate to one's own use includes, not
only conversion to one's personal advantage, but also every attempt to dispose of the
property of another without right. After a review of the evidence, the Court finds that the
prosecution failed to establish the existence of misappropriation beyond reasonable
doubt. Instead, Repuyan claimed that when she would remit money to Zenaida, the lat -
ter would issue acknowledgement receipts to her. When asked to present these ac-
knowledgment receipts to prove that Zenaida indeed received the exact amotmts re-
flected in the columnar logbooks, she stated that Zenaida's daughter, Swisa Manjares
King, had borrowed and had never returned the originals. She also stated that she had
photocopies of these acknowledgment receipts, but they were also lost because she
kept them in a drawer that Zenaida had access to. All of these claims, however, were
uncorroborated. Zenaida denied executing acknowledgement receipts, and claimed to
only execute three deposit slips each time Repuyan would remit money to her for de-
posit. No one also witnessed that Swisa indeed borrowed the originals, if they even re -
ally existed. It must be clarified that the Court is not saying that Zenaida is, or should be,
completely free from liability. The Court recognizes that Zenaida may be said to have
been remiss in performing her duties as branch manager. Nevertheless, this only makes
her possibly civilly liable to Ballesteros or Alson's Polangui. The Court, however, would
not pronounce any civil liability in this case yet because Ballesteros properly reserved
his right to file a separate civil action against Zenaida on the same set of facts. Where-
fore, the petition is granted.
