Thursday, December 19, 2013

[CASE DIGEST] CABRAL v. UY (G.R. No. 174584)


January 20, 2010

Ponente: Abad, J. 

FACTS:

·         Jacinto Uy, chairman of real estate company Moldex Realty, entered into a joint venture agreement with Quintin Bernardo for the inclusion into Moldex's residential subdivision project in Bulacan of two parcels of land, totaling 20,954 square meters, that Bernardo held under two emancipation patents.

·         On June 21, 2001, Moldex applied for a license to sell subdivision lots in the project mentioned with the Housing and Land Use Regulatory Board (HLURB), but the application was denied for failure to comply with the requirements.

·         On July 2, 2002, petitioner Victoria P. Cabral filed a criminal complaint against respondents Uy, et al. for violation of Section 5 of Presidential Decree (P.D.) 957, or the Subdivision and Condominium Buyers' Protective Decree, alleging that she was the registered owner of the lots subject of Bernardo's emancipation patents.

·         Cabral said that prior to the transaction between Bernardo and respondent Uy, the latter offered to acquire the lots from her but she refused because of the pending case for cancellation of the patents that she filed against Bernardo with the Department of Agrarian Reform Adjudication Board.

·         Without an HLURB license to sell, Moldex Realty still sold subdivision lots to a certain Josefa C. Yanga. This prompted public prosecutors to file a criminal information before the RTC of Quezon City on April 28, 2003, against Uy, et. al.

·         Subsequently, however, or on September 17, 2003 the HLURB issued Moldex the license to sell that it needed.

·         Respondents Uy, et. al. filed a motion to quash the information and motion for judicial determination of probable cause, claiming that the office of the prosecutor and the trial court had no jurisdiction over violations of P.D. 957, such jurisdiction being with the HLURB alone.

·         Respondents Uy, et. al. also argued that even if the RTC could take cognizance of the case, they could not be held criminally liable because the HLURB subsequently issued them a license to sell.

·         Trial court denied the motions, but CA reversed and granted their prayer for a TRO. In its final ruling, the CA ruled that although the RTC had jurisdiction over the case, the case filed before it should be dismissed, given that the subsequent issuance of a license to sell extinguished respondents Uy, et al.'s criminal liability. Hence, the instant petition.

RULING: 

Petition granted.

Whether or not the office of the public prosecutor and the trial court have jurisdiction over criminal actions for violation of P.D. 957. – YES.

·         The penalty for violation of P.D. 957 are P20,000.00 fine and imprisonment of not exceeding 10 years or both. This penalty brings the offense within the jurisdiction of that court.

Whether or not HLURBs subsequent issuance to Moldex of a license to sell extinguished respondents Uy, et al.s criminal liability for selling subdivision lots prior to the issuance of such license. – NO

·         Selling lots or units without an HLURB license to sell is regarded as a malum prohibitum. In crimes that are mala prohibita, the forbidden acts might not be inherently immoral. Still they are punished because the law says they are forbidden.  With these crimes, the sole issue is whether the law has been violated.

·         Since the Information in this case sufficiently alleged that Moldex sold a subdivision lot when it did not yet have a license to do so, the crime was done. Assuming the allegations to be true, the subsequent issuance of the license and the invocation of good faith cannot reach back to erase the offense and extinguish respondents Uy, et al.’s criminal liability. 

·         The subsequent issuance of a license, as in this case, will not extinguish the liability of the developer for violation of Section 5* of P.D. 957.