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Monday, October 21, 2013

Cheng v. Sy, G.R. No. 174238, July 7, 2009

Rule 111




Facts:
Petitioner Anita Cheng filed two estafa cases before the RTC of Manila against respondent spouses William and Tessie Sy for issuing to her Philippine Bank of Commerce (PBC) checks which were dishonored upon presentment for having been drawn against a closed account. They were supposed to be payment of their loan from the petitioner.

            On January 20, 1999, Cheng also filed two cases for violation of BP 22 alleging the same facts before the MeTC of Manila. The estafa cases were later dismissed for failure of the prosecution to prove the elements of the crime. One of the criminal cases dismissed contained no declaration as to the civil liability of Tessie Sy. But, the second one contained a statement, “Hence, if there is any liability of the accused, the same is purely ‘civil,’ not criminal in nature.”

            Later, the MeTC, Branch 25, Manila, dismissed, on demurrer, the BP Blg. 22 cases in its Order dated February 7, 2005 on account of the failure of petitioner to identify the accused respondents in open court.  The Order also did not make any pronouncement as to the civil liability of accused respondents.

            Then, on April 26, 2005, Cheng lodged a complaint for collection of a sum of money with damages. The case was filed in the RTC of Manila and was based on the same PBC checks which were previously subject of the estafa and BP Blg. 22 cases.

            But, on January 2, 2006, the RTC dismissed the complaint for lack of jurisdiction, ratiocinating that the civil action to collect the amount of P600,000.00 with damages was already impliedly instituted in the BP Blg. 22 cases in light of Section 1, paragraph (b) of Rule 111 of the Revised Rules of Court. Petitioner filed a motion for reconsideration which was later on denied. Hence, this petition.

Issue:
Whether or not Section 1 of Rule 111 of the 2000 Rules of Criminal Procedure and Supreme Court Circular No. 57-97 on the Rules and Guidelines in the filing and prosecution of criminal cases under BP Blg. 22 are applicable to the present case where the nature of the order dismissing the cases for bouncing checks against the respondents was [based] on the failure of the prosecution to identify both the accused (respondents herein)?

Held:
Yes. Any new rules may validly be made to apply to cases pending at the time of their promulgation, considering that no party to an action has a vested right in the rules of procedure.

However, petitioner is in error when she insisted that the 2000 Rules on Criminal Procedure should not apply because she filed her BP Blg. 22 complaints in 1999.  It is now settled that rules of procedure apply even to cases already pending at the time of their promulgation.  The fact that procedural statutes may somehow affect the litigants’ rights does not preclude their retroactive application to pending actions. 

 It is axiomatic that the retroactive application of procedural laws does not violate any right of a person who may feel that he is adversely affected, nor is it constitutionally objectionable.  The reason for this is that, as a general rule, no vested right may attach to, nor arise from, procedural laws.

          Indeed, under the present revised Rules, the criminal action for violation of BP Blg. 22 includes the corresponding civil action to recover the amount of the checks.  It should be stressed, this policy is intended to discourage the separate filing of the civil action.  In fact, the Rules even prohibits the reservation of a separate civil action, i.e., one can no longer file a separate civil case after the criminal complaint is filed in court.  The only instance when separate proceedings are allowed is when the civil action is filed ahead of the criminal case.  Even then, the Rules encourages the consolidation of the civil and criminal cases. 

Thus, where petitioner’s rights may be fully adjudicated in the proceedings before the court trying the BP Blg. 22 cases, resort to a separate action to recover civil liability is clearly unwarranted on account of res judicata, for failure of petitioner to appeal the civil aspect of the cases.  In view of this special rule governing actions for violation of BP Blg. 22, Article 31 of the Civil Code is not applicable.

However, in applying the procedure discussed above, it appears that petitioner would be left without a remedy to recover from respondents the P600,000.00 allegedly loaned from her.  This could prejudice even the petitioner’s Notice of Claim involving the same amount filed in Special Proceedings No. 98-88390 (Petition for Voluntary Insolvency by Kolin Enterprises, William Sy and Tessie Sy), which case was reportedly archived for failure to prosecute the petition for an unreasonable length of time.[21]  Expectedly, respondents would raise the same defense that petitioner had already elected to litigate the civil action to recover the amount of the checks along with the BP Blg. 22 cases.

          It is in this light that we find petitioner’s contention that she was not assisted by a private prosecutor during the BP Blg. 22 proceedings critical.  Petitioner indirectly protests that the public prosecutor failed to protect and prosecute her cause when he failed to have her establish the identities of the accused during the trial and when he failed to appeal the civil action deemed impliedly instituted with the BP Blg. 22 cases.  On this ground, we agree with petitioner.

Faced with the dismissal of the BP Blg. 22 cases, petitioner’s recourse pursuant to the prevailing rules of procedure would have been to appeal the civil action to recover the amount loaned to respondents corresponding to the bounced checks.  Hence, the said civil action may proceed requiring only a preponderance of evidence on the part of petitioner.  Her failure to appeal within the reglementary period was tantamount to a waiver altogether of the remedy to recover the civil liability of respondents.  However, due to the gross mistake of the prosecutor in the BP Blg. 22 cases, we are constrained to digress from this rule.

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