CHU VS Court of Appeals Case Digest G.R. No. 49588. December 21, 1990

Topic: Criminal Procedure Rule 111, Rules of Court

FACTS: Private respondents Jaime Navoa and Milagros de Leos filed a criminal case against before petitioners Diong Bi Chu alias "Patrick Chang" and Chang Ka Hi alias "Chang Ka Hee" with estafa. Commission No. 3 rendered judgment acquitting petitioner Diong Bi Chu alias "Patrick Chang", holding that the transaction between the parties was a joint venture, requiring each party to contribute to a common fund. As an offshoot of the criminal case, private respondents filed a civil action 4 against Diong Bi Chu, Chang Ka Hee and Lu Liong Corporation for recovery of damages arising from guaranty and fraud, before the Court of First Instance of Rizal. Petitioners moved for the dismissal of the civil action for damages filed against them, on the ground that the same is barred by the prior judgment of Military Commission No. 3 and by private respondents' failure to reserve their right to file a separate civil action.

the appellate cour held that the civil action for damages under Art. 33 of the Civil Code is independent of the criminal case and that the dismissal of the criminal case against petitioner Chang Ka Hee and the acquittal of petitioner Diong Bi Chu do not constitute a bar to the prosecution of the civil action for damages against them. Petitioners moved for reconsideration of said resolution, but the same was denied.

ISSUE/HELD: WON a civil action for damages based on fraud under Art. 33 of the Civil Code is barred by a prior judgment of acquittal in a criminal case. NEGATIVE

RATIO DICIDENDI:

Art. 33 of the Civil Code provides that "(I)n cases of defamation, fraud, and physical injuries, a civil action for damages, entirely separate and distinct from the criminal action, may be brought by the injured party. Such civil action shall proceed independently of the criminal prosecution, and shall require only a preponderance of evidence."

To hold a person liable for damages under the foregoing provision, only a preponderance of evidence is required. An acquittal in a criminal case is not a bar to the filing of an action for civil damages, for one may not be criminally liable and still be civilly liable. Thus, the outcome or result of the criminal case, whether an acquittal or conviction, is really inconsequential and will be of no moment in the civil action.

The civil action under Art. 33 need not be reserved because the law itself already makes the reservation. 10 In the case of Bonite v. Zosa, 11 it was held that:

"Besides, the requirement in Section 2 of Rule 111 of the former Rules on Criminal Procedure that there be a reservation in the criminal case of the right to institute an independent civil action, has been declared as not in accordance with law. It is regarded as an unauthorized amendment to the substantive law, i.e. the Civil Code, which does not require such a reservation. In fact, the reservation of the right to file an independent civil action has been deleted from Section 2, Rule 111 of the 1985 Rules on Criminal Procedure, in consonance with the decisions of this Court declaring such requirement of a reservation as ineffective."