THIRD DIVISION

 

R.R. PAREDES, W.S. TIFFANY, T.R. KOTZE, H. MUSSAIN, FRANCISCO A. CRUZ, EDGARDO C. CATAGUIS, E.M. LAPUZ, ATTY. JOSELIA POBLADOR, JOSE DE LUSONG, EDUARDO A. RICARDO, ATTY. ARIEL F. ABONAL, and ADOLFO GARCIA,

                    Petitioners,

 

 

- versus-

 

 

TARCISIO S. CALILUNG,

                    Respondent.

 

G.R. No. 156055

 

Present:

 

YNARES-SANTIAGO, J.,

       Chairperson,

AUSTRIA-MARTINEZ,

CALLEJO, SR.,*

CHICO-NAZARIO, and

NACHURA, JJ.

 

 

 

 

Promulgated:

 

 

March 5, 2007

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D E C I S I O N

 

 

CHICO-NAZARIO, J.:

 

 

          Before this Court is a Petition for Review on Certiorari[1] under Rule 45 of the Rules of Court seeking the reversal and setting aside of the Decision,[2] dated 29 January 2001, and Resolution,[3] dated 14 November 2002, of the Court of Appeals in CA-G.R. SP No. 54862.  In its assailed Decision, the Court of Appeals reversed the Resolution,[4] dated 27 July 1998, of the Department of Justice (DOJ), which affirmed the Resolution,[5] dated 7 October 1997, of the Makati City Prosecution Office, finding no probable cause and dismissing the herein respondent’s complaint, docketed as I.S. No. 97-22188-191; and, instead, disposed as follows –

 

WHEREFORE, the resolution of the Department of Justice dated November 26, 1997, is hereby set aside.  The Prosecutor of Makati, is hereby Ordered to file an information of Estafa against the respondents.

 

 

During the time material to the Petition at bar, petitioners Francisco A. Cruz (Cruz), Edgardo C. Cataguis (Cataguis), Atty. Joselia J. Poblador (Atty. Poblador), Jose De Lusong (De Lusong), Eduardo A. Ricardo (Ricardo), and Atty. Ariel F. Abonal (Atty. Abonal) were serving, in various capacities, as officials of Caltex Philippines, Inc. (CPI).  Petitioner Cruz was the Vice President for Corporate Planning and a member of the Board of Directors of CPI; petitioner Cataguis was the General Manager for Marketing and also a member of the Board of Directors of CPI; petitioner Atty. Poblador was the Corporate Secretary and General Manager for Legal and Tax of CPI; petitioner De Lusong was the General Manager for Marketing Retail of CPI; petitioner Ricardo was the General Manager for Marketing of CPI for the years 1990-1996; and petitioner Atty. Abonal was the internal Legal Counsel of CPI.

 

On 3 May 1997, respondent Tarcisio S. Calilung (Atty. Calilung), a lawyer and a businessman, instituted a Complaint, docketed as I.S. No. 97-22188-191, against the aforementioned petitioners and several others.  Respondent included in his complaint R.R. Paredes, W.S. Tiffany, T.R. Kotze, H. Mussain, and E.M. Lapuz, who had likewise served as officials of CPI but are no longer connected with the company and whose whereabouts as of present time are unknown.  They did not participate in any proceedings.  Respondent also included in his complaint Adolfo B. Garcia (Garcia), the Deputy Sheriff of the Manila Regional Trial Court (RTC), Branch 31, who participated in the proceedings before the Makati City Prosecution Office and the DOJ, but no longer participated in the instant petition.      

 

In his complaint before the Makati City Prosecution Office, respondent charged petitioners, et al., with several counts of estafa.  Respondent’s Original Complaint was summarized in the Resolution,[6] dated 7 October 1997, of the Makati City Prosecution Office, to wit –

 

[Herein respondent] Tarcisio S. Calilung alleged that [herein petitioner] Atty. Joselia Poblador, Chief Legal Counsel of Caltex Philippines (Caltex for brevity) negotiated to him the sale of several parcels of land consisting of 228.9 hectares, more or less[,] situated at Barrio Alibagu, Ilagan, Isabela.  Atty. Poblador represented to [respondent] that Caltex is the absolute owner of all the parcels [of] land as it acquired the same at a Sheriff’s Auction Sale, a copy of a Sheriff’s Certificate of Final Sale was shown to [respondent].  Likewise, Atty. Poblador represented  and assured complainant that subject property is not covered by the Agrarian Reform Program and that the adverse occupants thereof are mere squatters.  Consequently, [respondent] paid the total amount of P3.5 Million for all the said parcels of land in two payments.  Thereupon, a Deed of Assignment with Consolidation of Title dated June 22, 1995 was executed between Caltex Philippines and Tarcisio S. Calilung.  Later, [respondent] discovered that none of the representations made to him by [petitioner] Atty. Poblador is true.  Contrary to Atty. Poblador’s representation, Caltex Philippines is not the absolute owner of the several parcels of land sold to him.  Accordingly, the several parcels of land are owned by the heirs of Antonia Medina (sic).  Caltex Philippines is the owner of only one share of the co-heirs which it acquired at the Sheriff’s Auction.  Further, [respondent] learned that on August 3, 1993, Caltex thru E.A. Ricardo, manager for Marketing, has already sold the subject parcels of land to the Department of Agrarian Reform under Voluntary Offer To Sell program of the Government.  Also, complainant averred that the Sheriff’s Certificate of Final Sale executed by Deputy Sheriff Adolfo Garcia shown to him was falsified as it showed that Caltex’s bid of P2.7 Million was successful and it is the absolute owner of all the parcels of land.  The truth however, is that Caltex is the owner of only one share of one of the co-heirs.  Lastly, Caltex through E.A. Ricardo misrepresented to the Department of Agrarian Reform that the subject property is agricultural inorder (sic) that it will qualify and be sold under the Agrarian Reform Program.  The truth of the matter is the said parcels of land are pasturelands thus, exempt from the coverage of the Agrarian Reform Program.  Hence, [respondent] filed this complaint for Estafa against R.H. Paredes, W.S. Tiffany, T.R. Kotze, H. Mussain, F.A. Cruz, E.C. Cataguis, E.M. Lauz who are members of the Board of Caltex Philippines, Atty. Joselia Poblador, Chief Legal Counsel, Jose De Lusong, signatory of the Deed of Assignment and E.A. Ricardo, manager for Marketing and Atty. Ariel F. Abonal, assistant Secretary to the Board of Caltex Philippines who according to him acted in concert in perpetrating the crime charged.  Likewise, a complaint for Falsification is instituted against Adolfo Garcia who connived with the above-mentioned officers/members of the Board of Caltex Philippines for falsification.

 

 

To answer the respondent’s accusations against them, petitioners Atty. Poblador, Cruz, Cataguis, De Lusong, and Ricardo, submitted their Joint Counter-Affidavit,[7] averring that the respondent’s complaint was without basis in fact and in law, and that they could not be held liable for estafa. The contents of their Joint Counter-Affidavit were concisely recounted by the Makati City Prosecutor in her Resolution,[8] dated 7 October 1997

 

Jose de Lusong and Atty. Poblador claimed that they did not at any time represent that Caltex Philippines is the absolute owner of the entire subject parcels of land.

 

[Herein petitioners] narrated that Caltex’s rights and interests on subject parcels of land arose from Civil Case No. 84-22434 entitled Caltex Philippines vs. Antonia Vda. de Medina at Branch 31, RTC-Manila.  Antonia Vda. de Medina is Caltex’s judgment debtor and is [respondent’s] mother-in-law.  During the pendency of the case, or on February 7, 1984, 5 Notices of Levy on Attachment were issued against the rights, titles and interest of [respondent’s] mother-in-law.  The undivided shares of the other heirs, two (2) children of Antonia Vda. de Medina were never levied.  On September 17, 1984, a decision was rendered in favor of Caltex Philippines and the same became final and executory.  On July 24, 1989, a Writ of Execution was issued.  On July 24, 1989, Deputy Sheriff Adolfo B. Garcia issued a Notice of Levy Execution [sic] where only the shares, rights and interests of [respondent’s] mother-in-law over subject parcels of land were levied upon.  Likewise, a notice of Sheriff’s Sale was issued.  On August 23, 1989, Caltex, through Atty. Rafael Durian bidded P4.5 Million for the purchase of the rights, shares of [respondent’s] mother-in-law in subject parcels of land.  Consequently, the subject parcels of land (shares and interests of Antonia Vda. de Medina which is 66.67% of the entire property) were sold to Caltex Philippines in the amount of P2,785,620.00.  After the execution of the sale, [respondent’s] mother-in-law was given one (1) year within which to redeem her interest over the subject land.

 

After the lapse of the one (1) year redemption period given to Antonia Vda. de Medina, [respondent] went to Caltex office and propose [sic] to reacquire the interest of Antonia Vda. de Medina and to pay the defficiency (sic) judgment obligation of his mother-in-law.  Caltex Philippines, through its office accepted the proposal of [respondent] to buy the parcels of land.  Complainant further requested that all cases against his mother-in-law be withdrawn.  Caltex Philippines agreed and the sale of the said subject parcels of land to [respondent] in the amount of P3.5 Million materialized.  On the first payment made by the [respondent], Caltex Philippines executed a Deed of Waiver and Quitclaim in all cases filed against [respondent’s] mother-in-law.  Thereupon, a Deed of Assignment with Consolidation of Title was executed by herein parties after the balance [thereof] was tendered by [respondent].

 

On the alleged sale by Caltex Philippines of subject parcels of land to the Department of Agrarian Reform, [petitioners] denied having sold the same to DAR.  According to [petitioners], it was Antonia Vda. de Medina through her attorney-in-fact Carlito Baluang who transacted the voluntary Officer (sic) To Sell with the Department of Agrarian Reform sometime in 1988 and 1989.  Subsequently, by virtue of the Deed of Assignment (With Special Power of Attorney Couple (sic) With Interest) executed by Antonia Vda. de Medina ceded in favor of Caltex Philippines, wherein Antonia Vda. de Medina “all her rights, interests, claims and participation from the proceeds of land compensation for all the property that she has voluntarily offered to sell” to Caltex Philippines and constituted the latter as its (sic) exclusive attorney-in-fact to follow-up with the Department of Agrarian Reform.  Accordingly, this matter is make (sic) known to [respondent].  It was on the strength of [respondent’s] relation to Antonia Vda. de Medina and his assurance that he has connections with DAR that CPI decided to sell subject property to [respondent].

 

[Petitioners] denied the allegation of [respondent] that Caltex officers and directors conspire (sic) with Deputy Sheriff Adolfo B. Garcia and notary Public Atty. Ariel Abonal in the falsification of the Sheriff’s Certificate of Final Sale by representing that Caltex bidded for the entirety of all the parcels of land subject of the sale and using the said falsified documents to convince [respondent] of Caltex’s absolute title over the subject parcels of land.

 

Lastly, the declaration [of] Mr. Eduardo A. Ricardo that subject parcels of land is (sic) agricultural in nature in the Voluntary Officer (sic) To Sell to the DAR can hardly be considered a crime moreso that there is no other proof presented than the mere self-serving statement of Mr. Ricardo.  Besides, in the Deed of Assignment with Consolidation of Title, there is not (sic) warranty as to the properties[’] classification or primary use given.

 

 

            Deputy Sheriff Garcia submitted his own Counter-Affidavit with a Counter-Complaint for Perjury.[9]  He essentially affirmed the narration made in the petitioners’ Joint Counter-Affidavit, particularly, the events arising from Civil Case No. 84-22434, instituted by CPI against respondent’s mother-in-law, Antonia Vda. de Medina, before the Manila RTC.  After the Decision, dated 17 September 1984, rendered by the Manila RTC against Antonia Vda. de Medina, became final and executory, and upon failure of Antonia Vda. de Medina to pay her judgment debt to CPI, Deputy Sheriff Garcia proceeded to implement the Writ of Execution which levied upon Antonia Vda. de Medina’s rights, interests, title and participation in the subject real properties.  At the execution sale held on 24 August 1989, CPI won the bidding.  It bought Antonia Vda. de Medina’s limited interests over the subject real properties in the total amount of P4.5 Million.  CPI’s winning bid was broken down[10] as follows –

 

P2,785,620.00

For the parcels of land covered by TCT Nos. T-132694, T-133034, T-94234, T-124684, T-139590, T-138153, T-138154, T-138155, T-133033, T-133021, T-133022, T-133023, T-133024, T-133025, T-133026, T-133027, T-133028, T-133029, T-133030, T-133031, T-133032, T-133033 and T-133034; and,

 

P1,714,380.00

For the parcels of land covered by Tax Declaration Nos. 01-262, 01-265, 01-25080, 01-29376 and 01-23470

 

P4,500,000.00

Total

 

When Antonia Vda. de Medina failed to redeem her interest in the subject real properties within a year from the execution sale, ownership over the said interest was consolidated in CPI.  Deputy Sheriff Garcia explained that he prepared the Final Certification of Sale on 24 October 1990, although it was notarized only on 1 February 1994.  He denied that he ever conspired with CPI, through its officers and directors, to make false representations to respondent that CPI was the absolute owner of the subject real properties; to maliciously conceal from respondent that CPI already sold the subject real properties to the Department of Agrarian Reform (DAR); or to falsify the Sheriff’s Certificate of Final Sale so as to convince respondent that CPI had absolute title over the subject real properties.  He averred that he conducted the execution sale as part of his official duties and in accordance with the Rules of Court and the judgment issued by the Manila RTC in Civil Case No. 84-22434.  He also maintained that only the rights and interests of Antonia Vda. de Medina over the subject real properties were covered by the execution.           

 

Respondent submitted a Reply-Affidavit in which he insisted that the concealment of a prior sale, the falsification of the Sheriff’s Certificate of Final Sale and the conspiracy among the petitioners, et al., and the others can be readily seen.  Once again, reference is herein made to the Resolution, dated 7 October 1997 of the Makati City Prosecution Office which related[11] thus –

 

[Herein respondent] alleged that he married the daughter of Antonia Vda. de Medina on November 22, 1994.  In early November of 1994, Atty. Villacorta, [respondent’s] counsel, inquired from Caltex about the redemption of subject parcels of land.  Caltex refused their offer to redeem the property because the period for redemptions (sic) has long expired.  However, Caltex proposed that if they are interested in the remaining subject properties, they can purchase the same, Caltex demanded for P9 Million for the fourteen (14) parcels of land consisting of 228.9 hectares.  Caltex never informed [respondent] or his counsel that the entire properties were sold to DAR for [P]1 Million.  On November 1994, [respondent] formally offered to buy the entire fourteen (14) parcels of land [pay for] P3.5 Million as earnest money which was accepted by Atty. Poblador.  Even if the titles over the subject parcels of land was (sic) still in the name of Antonia Medina (sic), he believed Atty. Poblador’s representation that Caltex is the absolute owner by virtue of the Sheriff’s Certificate of Final Sale handed to him.  Nowhere in the Sheriff’s Certificate of Final Sale that only Ľ undivided share of Antonia Medina was auctioned.

 

The certificate of Final Sale was dated October 24, 1990 but notarized only on November 15, 1994, which is more than a week before he paid the earnest money on November 29, 1994.  Lastly, the declared sale price of P2,785,620.00 does not correspond to the written winning bid by Caltex for P4.5 Million.

 

 

To support his foregoing allegations, respondent also submitted the Affidavit[12] of his counsel, Atty. Rolando A. Villacorta (Atty. Villacorta), who supposedly represented and assisted him during the negotiations with CPI for the purchase of the subject real properties.  Atty. Villacorta attested that he met with both petitioners Attys. Poblador and Abonal of CPI regarding respondent’s offer to purchase the subject real properties; that Atty. Poblador, in response to a direct query by respondent, expressly denied that the subject real properties were covered by the Comprehensive Agrarian Reform Program (CARP) of the Government; and that respondent was never informed that what he was purchasing was not the whole of the subject real properties, consisting of 229 hectares, but only an undivided share therein.

 

In their Joint Rejoinder,[13] petitioners Cruz, Cataguis, De Lusong, Ricardo and Attys. Poblador and Abonal denied meeting and talking to Atty. Villacorta.  According to petitioners Attys. Poblador and Abonal, at the beginning of their negotiations for the purchase by respondent of the subject real properties from CPI, the latter was accompanied, not by Atty. Villacorta, but an Atty. Karl Miranda from the Office of the Solicitor General (OSG), acting as a broker.  During their meeting, they discussed about the redemption of the rights, interests, and title of Antonia Vda. de Medina over the subject real properties.  In their succeeding meetings, petitioners stressed that respondent was informed that CPI was selling and assigning only the limited rights, interests, and title of Antonia Vda. de Medina over the subject real properties, and that the subject real properties were under the coverage of CARP and were subject of a Voluntary Offer to Sell (VOS).  Petitioners pointed out that respondent himself admitted that he was purchasing only the limited interest of Antonia Vda. de Medina in the subject real properties when he stated in his letter,[14] dated 29 November 1994, addressed to CPI, that, “We are pleased to inform you that we accept your offer to sell to us for P3.5 Million your interest in the foreclosed Medina properties.”

 

Moreover, to belie the attestations of respondent and Atty. Villacorta in their affidavits, petitioners presented the Affidavits of Attys. Rodrigo B. Libunao, Jr.[15] and Catherine T. Manahan,[16] Legal Counsel and Tax Counsel, respectively, of CPI, who were also present during the meetings of petitioner Atty. Poblador with respondent.  They both alleged that they were called to join the meeting in October 1994 wherein respondent was accompanied, not by Atty. Villacorta, but Atty. Miranda of the OSG; that respondent claimed to be married to Ma. Luisa Victoria Medina, the daughter of Antonia Vda. de Medina, and he was interested in acquiring CPI’s rights, interests, and title to the subject real properties in exchange for CPI’s execution of a waiver or quitclaim to secure the release of Antonia Vda. de Medina who was in prison by reason of the criminal cases filed by CPI against her; and that Atty. Poblador made full disclosure to respondent that CPI had, and was assigning to respondent, only the limited rights, interests, and title of Antonia Vda. de Medina over the subject real properties, and that the subject real properties were under the coverage of CARP and the subject of the VOS initiated by Antonia Vda. de Medina herself, through her attorney-in-fact Carlito Balauag. 

 

Atty. Libunao further claimed that on 1 December 1994, when respondent came unaccompanied to the CPI Office to pay the P1 Million earnest money, Atty. Libunao again explained to him in detail the following –

 

a.       That CPI was merely a co-owner of the said properties as there were other heirs to the estate, one of whom was his wife, and that only the undivided share pertaining to Antonia Vda. de Medina which we acquired in an execution sale in Civil Case No. 84-22434 could be transferred to him.

 

b.      That photocopies of the TCT’s to the subject parcels of land were furnished, and exhibited to, him and he carefully noted that the subject parcels of land were in the name of “Heirs of Antonio Medina.”

 

c.      That the subject parcels of land were covered by the Comprehensive Agrarian Reform Program (CARP) by virtue of a Voluntary Offer to Sell signed by Antonia Vda. de Medina, through her attoreney-in-fact, Mr. Carlito Balauag.  A copy of this document was also furnished Atty. Calilung.

d.      That out of the sixteen (16) parcels of land under process by the DAR, two (2) lots are ready for compensation and that the money has already been deposited by the DAR in a trust account in the Landbank branch in Tuguegarao, Cagayan.

e.      That the fourteen (14) subject parcels of land are still under process by the MARO in Ilagan, Isabela and that the latter has started to identify the actual occupants and proposed beneficiaries of the same.

 

f.       That payment of compensation under the CARP was being delayed by the fact that the heirs of Antonio Medina have not initiated any estate settlement proceeding and that none of the heirs has ever participated in the DAR conferences, despite notice.[17]

 

 

When Atty. Libunao again asked him if he really understood the complexities of the CARP issues affecting the subject real properties, respondent allegedly “confidently replied that he had been successful in preserving his and his family’s landholdings in Pampanga and that he will do the same for the subject parcels of land.”[18]

 

On 7 October 1997, the Makati City Prosecution Office wrapped up its preliminary investigation and issued its Resolution, in which it made the following findings and recommendations[19]

 

After a careful examination of the evidence obtaining in this case the undersigned finds that: (1) there appears no conceivable  fraudulent representations committed by [herein petitioners, et al.] (Caltex Officers) in the negotiation and sale of subject parcels of land, (2) there is no sufficient proof to show that the Sheriff’s Certificate of Final Sale was falsified by [Deputy Sheriff Garcia] in connivance with [petitioners, et al.] Caltex Officers; and (3) that there is insufficient evidence to substantiate [respondent’s] claim that [petitioners, et al.] (Caltex Officers) made false declaration that subject parcels of land are productive agricultural land so these parcels of land may be covered and sold under the Agrarian Reform Program of the Government.

 

x x x x

 

Seemingly, [respondent] would want to extricate himself from a bad bargain and annul the effects of an unwise act.  If the [respondent] failed to apprise himself of the consequence of his purchase of subject parcels of land from Caltex[,] he was simply unfortunate.  As it would appear all documents and informations (sic) about the parcels of land subject matter of the sale transactions entered by the parties are in [respondent’s] hands for his scrutiny.  [Respondent] is a lawyer and as such it can be presumed that he knows the complexities/controversies attached to the interests and rights of his mother-in-law (Antonia Vda. de Medina) over the parcels of land he wants to purchase from [petitioners, et al.] Caltex Officers.  Clearly, there was no misrepresentation and/or concealment regarding the ownership of Caltex over subject parcels of land.  Neither was there falsification committed on the Sheriff’s Certificate of Title.

 

            x x x x

 

WHEREFORE, premises considered, it is respectfully recommended that complainant (sic) against [petitioners, et al.] Caltex Officers and Adolfo Garcia be dismissed, as it is hereby upon, approval, dismissed.

 

Likewise, it is recommended that the counter-charge of perjury against [respondent] be dismissed.

 

 

            Aggrieved, respondent filed with the DOJ a Petition for Review of the Resolution, dated 7 October 1997, of the Makati City Prosecution Office.  However, on 27 July 1998, the DOJ resolved[20] to dismiss his Petition for Review, ratiocinating thus –

 

The record clearly shows that the subject parcels of land were previously owned by the late Antonio Medina.  Upon the latter’s death, the said properties were inherited by Antonia Vda. de Medina and her children through intestate succession.  When Caltex filed a civil case against Antonia Vda. de Medina, who is [herein respondent’s] mother-in-law, the latter’s rights, title and interests over the subject properties were levied on attachment during the pendency of the said case.  Thereafter, upon judgment in favor of Caltex in the said civil case; and, pursuant to the writ of execution issued therein, the rights, title and interests of Antonia Vda. de Medina over the said parcels of land were levied on execution and, consequently, sold at public auction with Caltex eventually winning the bid.  Finally, a certificate of sheriff’s sale was issued and based thereon Caltex became the owner of the undivided interest of Antonia Vda. de Medina over the subject parcels of land.

 

We find it incredible for [respondent] not to have known the foregoing circumstances.  It must be stressed that [respondent is] a member of the family of Antonia Vda. de Medina.  It taxes one’s credulity that [respondent] would have had no personal knowledge about the family’s properties which were the subject of the sale transaction [respondent] had with Caltex.  Besides, [respondent is] a lawyer [himself].  As such, not only [was respondent] expected to know the intricacies and complexities of the sale transaction [he] entered with Caltex but also [respondent] had all the means and resources to check and counter-check the veracity of [herein petitioners, et al.’s] representations.  Indeed, it is hard to believe that [respondent] chose to just take the word of [petitioners, et al.] that Caltex is the owner of all the subject properties rather than examine the documents pertaining thereto before parting with a substantial amount of money.  We take with a grain of salt [respondent’s] allegation that during the sale negotiations [respondent was] unaware of the extent of the ownership of Caltex over the properties in question not only because of [respondent’s] stature as a lawyer-businessman but also because of [his] personal knowledge thereon by reason of [his] being a member of the family of Antonia Vda. de Medina from whom Caltex acquired the subject properties.  Under this milieu, no amount of fraudulent misrepresentations from [petitioners, et al.] could have misled [him] into executing with Caltex the Deed of Assignment with Consolidation of Title over the properties in question.

 

The foregoing circumstances not only create suspicion as to [respondent’s] actual motive in filing the instant complaint but also strengthen [petitioners’] claim that there is, indeed, reasonable ground to believe that [respondent] entered into the transaction in question knowing fully well that what was being sold by Caltex was only the undivided interest of [his] mother-in-law who is one (1) of the co-heirs in (sic) the subject parcels of land.

 

Besides, no clearer acknowledgment by [respondent] of [his] knowledge on (sic) the circumstances surrounding the subject properties than as stated in par. 3, p. 5, of the Deed of Assignment with Consolidation of Title can be made, which states thus –

 

            x x x x

 

“4.       ASSIGNEE [respondent] further acknowledges that he is fully aware of the circumstances under which these Properties were acquired by ASSIGNOR [CPI] and that he has examined the title and inspected the said properties and has verified their location together with their boundaries.”  x x x

 

            As regards the findings of the City Prosecutor on [respondent’s] other charges for estafa under Article 315, par. (3) of the Revised Penal Code and falsification/use of falsified documents, we can find no cogent reason to alter, modify much less reverse the same.

 

            WHEREFORE, [respondent’s] instant petition for review is hereby dismissed.

 

 

Respondent’s Motion for Reconsideration was denied by the DOJ in another Resolution dated 30 June 1999.

 

This prompted respondent to file with the Court of Appeals a Petition for Certiorari under Rule 65 of the Rules of Court, contending that the DOJ and the Makati City Prosecution Office committed grave abuse of discretion amounting to lack or excess of jurisdiction in dismissing respondent’s complaint in I.S. No. 97-22188-191.  The Court of Appeals, in its Decision,[21] dated 29 January 2001, reversed the findings of the DOJ and the Makati City Prosecution Office, and ordered the filing of an information for estafa against the petitioners, based on the following raison d'ętre

 

The Court after a perusal over (sic) the ruling of the Department of Justice believes that said resolution deserves scant consideration.  This is so because the issue on double sale was just taken in passing by the Department of Justice, when that issue is paramount in the case.

 

It appears on record that E.A. Ricardo, General Manager – Marketing commercial of Caltex offered for sell (sic) to DAR the subject property.

 

x x x x

 

It should be noted that the sale to DAR is unlike the ordinary contract to sell transactions wherein one could determine when a sale is consummated.  But at this instance, where voluntary offer to sell has been made, where process has been undergoing at that time, We opine that there is already sale considering the unique circumstance of selling the subject landholding to the DAR.

 

This is so because under Administrative Order No. 5 series of 1992, it provides that landowners who entered into Voluntary Offer to sell can no longer back out, except under the exceptional circumstances as earlier illustrated.  The present case is one that is not of the exception.  Hence, if a landowner can no longer back out since he entered into that kind of transaction and by entering into another sale such as in this case, fully knowing of the circumstances but without divulging the same to the petitioner, would that not tantamount to misrepresentation, fraud and deceit.

 

A careful perusal on (sic) the comments and arguments of the [herein petitioners] that it (sic) did not refute in whatever manner that there was a sale that took place between the Department of Agrarian Reform and the CPI.  As a matter of fact, a reading of the foregoing, in consonance with the VOS would connote that the sale has indeed been entered into because Caltex knew that a process has been undertaken by the DAR (p. 175 [petitioners’] Comment) x x x.

 

These are an admission (sic) so far, that there was indeed a previous transfer of the subject parcels of land to the DAR as they never disputed that there was a sale between CPI and DAR.  The words of CALTEX are simple and explicit, there was an “offer” and “transfer” and that there was already an ongoing process of the VOS.  Hence, there was a sale by virtue of the voluntary offer to sell under the Comprehensive Agrarian Reform Program.  The only thing is that, Caltex denies responsibility that it was the one who offered the sale to DAR, but it claim (sic) instead that it was Antonia Vda. de Medina.  But this argument bears no weight.  Regardless of whether or not Antonia Vda. de Medina was the one who offered to sell the property to DAR, CALTEX can’t absolve itself from any responsibility.

 

x x x x

 

So whether or not the first voluntary offer to sell to the Department of Agrarian Reform was made by Antonia Vda. de Medina and the second offer was made by CALTEX to DAR, to our mind is, of no moment.  One thing is thus, clear, CALTEX who duly executed the necessary documents.  There is nothing on record which would reveal that [petitioners] was (sic) able to prove that [herein respondent] was fully informed of the first sale made to DAR.

 

Further, [petitioners] claimed that being a son-in-law,it (sic) would be impossible for [respondent] not to know it.  This is not sufficient reason to conclude that [respondent] was aware of the attending circumstances.  And we cannot therefore, agree with the conclusion of the DOJ.

 

Clearly then, the evidence points out that what appears to have been sold were the properties described in the 14 TCT’s without any qualification thereon.  And that the existence of a double sale can’t be contested, there being an admission by the [petitioners] that there was a sale made to DAR prior to herein [respondent].

 

x x x x

 

With the acts of CALTEX in the case at bar it can be gleaned therefrom that there was no clear transactions [sic] that took place, thus, there was an evident misrepresentation to the damage and prejudice of the [respondent].  As supported by the Deed of Assignment itself, the assurances given by the assignor CALTEX to [respondent] is a grave misrepresentation to the [respondent] who is the buyer of the properties in question.  That where there was no divulgement made by the CALTEX to petitioner of the sale to DAR, there is no question that deceit is present.  The presence of damage and deceit are (sic) apparent in the present case, hence, the very elements of Estafa exist.

 

Even granting that the sale was only with respect to the individual share or interest of CALTEX, it can’t be denied that deceit was committed by [petitioners, et al.] in not being fair, honest in not revealing the real status of the subject lot. x x x Had it not been of such misrepresentation, the Court believes that [respondent] would not have parted substantial amount of money.

 

From the foregoing premises, a prima facie case of ESTAFA was herein committed by the [petitioners, et al.] on the ground of double sale.  And the only way to determine whether [petitioners, et al.] herein are guilty or not is in a full blown trial before a Court.  However, we do not find any participation of the Deputy Sheriff Adolfo Garcia on the issue of double sale, it appearing that he has nothing to do with the transaction between CALTEX and Department of Agrarian Reform.  This Court is convinced that the Deputy Sheriff had just performed a ministerial duty imposed upon him by law.

 

 

After their Motion for Reconsideration was denied by the Court of Appeals, in its Resolution,[22] dated 14 November 2002, petitioners come before this Court via a Petition for Review on Certiorari under Rule 45 of the Rules of Court.  Petitioners posit that the Court of Appeals erred in finding that there exists a prima facie case against them considering that: (1) Petitioners never deceived respondent with regard to the background circumstances of the subject real properties; (2) There was no “double sale” made by CPI of its rights and interests in the subject real properties; and (3) There exists no proof of specific overt acts or omission of each of the petitioners which would constitute conspiracy in committing the alleged crime of estafa.

 

This Court finds the Petition at bar meritorious.

 

In his complaint, respondent charges petitioners, together with other persons no longer part of the present Petition, of two counts of estafa by means of deceit: (1) estafa by means of false pretenses, under Article 315(2)(a) of the Revised Penal Code; and (2) estafa by means of concealment, under Article 315(3)(c) of the same Code.  Relevant provisions of the Revised Penal Code expressly read thus –

 

ART. 315.  Swindling (estafa). – Any person who shall defraud another by any of the means mentioned hereinbelow shall be punished by:

 

x x x x

 

[P]rovided that in the four cases mentioned, the fraud be committed by any of the following means:

 

            x x x x

 

(2) By means of any of the following false pretenses or fraudulent acts executed prior to or simultaneous with the commission of the fraud:

 

(a) By using a fictitious name, or falsely pretending to possess power, influence, qualifications, property, credit, agency, business or imaginary transactions, or by means of other similar deceits;

 

x x x x

 

(3)  Through any of the following fraudulent means:

 

x x x x

 

(c) By removing, concealing or destroying, in whole or in part, any court record, office files, document or any other paper.

 

The elements of estafa by means of deceit,