384 Phil. 130
PANGANIBAN, J.:
"WHEREFORE, IN VIEW OF THE FOREGOING, this appeal is hereby GRANTED. The Decision of the lower [c]ourt dated November 6, 1995 is REVERSED and SET ASIDE, and the complaint for damages in the court below is ordered DISMISSED. No pronouncement as to costs."The assailed Resolution denied the petitioner’s Motion for Reconsideration.[5]
"Sometime in December 1978, Hermenegildo Villanueva, father of [herein Petitioner] Hector C. Villanueva, applied for and was granted a loan by [Respondent] United Coconut Planters’ Bank (UCPB), Dumaguete City Branch, which at that time was managed by one Bobby Cafe. The loan was for the alleged purpose of agricultural coconut production and for processing under the Coconut Production Loan Program. As security therefor, Hermenegildo Villanueva mortgaged to the bank a parcel of land registered in his name located at Mauban, Quezon.After trial on the merits, the lower court rendered its Decision[7] dated November 6, 1995, in favor of petitioner. The dispositive portion reads:[8]
"In the course of a bank audit, certain fraud, anomalies and irregularities were discovered in the application, processing and granting of said loan prompting UCPB to conduct further investigation on the matter.
"After due inquiry, the [respondent] bank found and concluded that [petitioner], together with his father, Hermenegildo Villanueva, Bobby Cafe (UCPB Dumaguete City Branch Manager) and a certain Reynaldo Ramos, confederated and conspired with each other in perpetrating the fraud, anomalies and irregularities to the detriment of the bank.
"On June 8, 1979, UCPB, through its counsel, filed the following criminal complaints with the Office of the City Fiscal (now Prosecutor) of Dumaguete City, to wit:"After preliminary investigation, the City Fiscal found probable cause and resolved to file three (3) informations with the Court of First Instance (now Regional Trial Court) of Dumaguete City (Exh. "7", pp. 98-120, ibid.), as follows:
- Against Bobby B. Cafe, Hermenegildo G. Villanueva, Hector Villanueva and Reynaldo Ramos, for violation of Section 77 of the General Banking Act, Republic Act (RA) No. 337, as amended by Presidential Decree (PD) No. 71, in relation to Central Bank Circular No. 517, Series of 1976, and Section 87 of the General Banking Act (Exh. "1", pp. 8-9, Defendant’s Folder of Exhibit);
- Against Hermenegildo Villanueva, Hector Villanueva and Reynaldo Ramos for violation of Section 87-A-2(d) of the General Banking Act, RA No. 337, as amended by PD No. 71 (Exh. "2", pp. 33-34, ibid.);
- Against Bobby B. Cafe for violation of Section 87-A-1 (c) of the General Banking Act, RA No. 337, as amended by PD No. 71 (Exh "3", pp. 46-47, ibid.);
- Against Bobby B. Cafe, Hermenegildo G. Villanueva, Hector Villanueva and Reynaldo Ramos for violation of Section 87-A-2(b) of the General Banking Act, RA No. 337, as amended by PD No. 71 (Exh. "4", pp. 59-60, ibid.);
- Against Bobby B. Cafe, Hermenegildo G. Villanueva, Hector Villanueva and Reynaldo Ramos for violation of Articles 315(2)(a) and 316(2) of the Revised Penal Code (Exh. "5", pp. 72-73, ibid.); and
- Against Bobby B. Cafe, Hermenegildo G. Villanueva, Hector Villanueva and Reynaldo Ramos for violation of Section 87-A-1(d) and Section 87-A-2(a) of the General Banking Act, RA No. 337, as amended by PD No. 71 (Exh. "6", pp. 85-86, ibid.).
"The three (3) criminal cases were consolidated and tried jointly.
‘1. Criminal Case No. 3699 ‘Against Bobby Cafe, Hermenegildo Villanueva, Hector Villanueva and Reynaldo Ramos for violation of Sections 77, 87-A-2(b) and 87-A-1(d) of the General Banking Act, RA No. 337, as amended by PD No. 71 and [Central Bank] Circular No. 517, Series of 1976 (Exh. "8", pp. 121-122, ibid.); ‘2. Criminal Case No. 3700 ‘Against Hermenegildo Villanueva, Hector Villanueva, Reynaldo Ramos and Bobby B. Cafe for violation of Sections 87-A-2(d) and 87-A-1(c), General Banking Act, RA No. 337, as amended by PD NO. 71 (Exh. "9", pp. 123-124, ibid.); ‘3. Criminal Case No. 3701 ‘Against Bobby Cafe, Hermenegildo Villanueva, Hector Villanueva and Reynaldo Ramos for the crime of Estafa under Article 315(2)(a) of the Revised Penal Code (Exh. "10", pp. 125-126, ibid.).’
"On June 29, 1991, the Regional Trial Court of Dumaguete City, Branch 37, rendered a decision therein acquitting all the accused except for Bobby Cafe, the dispositive portion of which reads:‘WHEREFORE, all the foregoing considered, judgment is hereby rendered as follows:"In view of his acquittal in the criminal cases, Hector Villanueva filed a complaint for damages on the ground of alleged malicious prosecution with the Regional Trial Court of Dumaguete City against [respondent bank], which was docketed as Civil Case No. 172-B and raffled to Branch [44] of the court. The complaint alleged, among others, that [petitioner] is a respectable member of the community, a professional, a member of various civic organizations, a businessman, and a political leader; that the filing of the criminal cases against him by [respondent bank] was done with malice which resulted in the undue maligning, blackening x x x of his integrity, honesty and good reputation, as well as adversely affecting his political career and business dealings, for which [petitioner] prayed that [respondent bank] be held liable to him for the amount [of] P200,000.00 in actual damages, P6,000,000.00 in moral damages, P2,000,000.00 in exemplary damages, P1,000,000.00 in nominal damages, and P800,000.00 in attorney’s fees, as well as P5,000.00 charge per court appearance.
‘1. In Criminal Case No. 3699, accused Bobby Cafe is found guilty beyond reasonable doubt of violating Paragraph 1(d) of Section 87-A of the General Banking Act as amended and is hereby sentenced to imprisonment of one year and to pay a fine of P2,000.00 with subsidiary imprisonment at the rate of one day for each eight pesos but in no case to exceed one-third of the term of the sentence, in case of insolvency, and to pay ¼ of the costs. Accused Rey Ramos and Hector Villanueva are acquitted on grounds of reasonable doubt with ½ of the costs de oficio.
‘In Criminal Case No. 3700 and Criminal Case No. 3701, accused Bobby Cafe, Hector Villanueva and Rey Ramos are acquitted on grounds of reasonable doubt with costs de oficio.
‘All the three cases against Hermenegildo Villanueva are ordered dismissed in view of his death pursuant to Paragraph 1 of Article 89 of the Revised Penal Code.’‘xxx xxx xxx.’
(Exhs. "K" and "11"; p. 358, Orig. Rec., Vol. I)
"In its answer, [respondent bank] denied the allegations in the complaint and asseverated that [petitioner] ha[d] no cause of action against [respondent bank] since the bank’s filing of the criminal complaints before the Fiscal’s Office of Dumaguete City was not tainted with malice; that it was the Fiscal’s Office that prosecuted the criminal cases against [petitioner] and his co-accused when after preliminary investigation, it found probable cause to file the informations in court; that the acts of the City Fiscal in filing the informations and prosecuting the cases [were] presumed to have been performed with regularity and in good faith; that [petitioner’s] acquittal based on reasonable doubt justifie[d][respondent bank’s] submission of its grievances to the machinery of justice for ruling and possible redress; that [petitioner’s]assertion that the filing of the criminal cases by the bank caused his political misfortunes [was] strained and farfetched; and that [petitioner’s] claim for damages ha [d] no legal and factual bases. [Respondent bank] thus prayed for the dismissal of the complaint and, in his counterclaim, for an award of P10,000,000.00 in moral damages, P2,000,000.00 in exemplary damages, P1,000,000.00 in attorney’s fees and costs of suit."
Restated, the issues brought forth in this case are as follows: (1) Was there probable cause against petitioner? (2) May the private complainant in a criminal case be held liable for malicious prosecution, considering that it is the fiscal who prosecuted the criminal action against the accused? and (3) Was the petitioner prosecuted out of malice?"I.
Can probable cause exist in non-existent crimes or indicted criminal acts not specifically punished by existing penal statutes?"II.
Complainant of a criminal complaint being merely reduced to the status of [a] complaining witness in the prosecution of the x x x information filed in court, does such reduced status absolve complainant of civil liability under the doctrine of malicious prosecution?"III.
On the application of the doctrine of malicious prosecution, is not the doctrine enunciated in the Lao v. Court of Appeals (199 SCRA 58, 61) complimentary, supportive or rather strengthening further the earlier doctrine posited in the case of Lagman v. Intermediate [Appellate Court] (G.R. 77281, 28 Oct. 89), or did the former amend or supplant the latter?"[10]
"The first document of the case x x x is a Deed of Sale executed on November 4, 1978 in the City of Manila selling Lot No. 7716-B of the Cadastral Survey of the Municipality of Mauban, Province of Quezon covered by Transfer Certificate of Title No. T-81215 of the land records of Quezon Province consisting of 5,791,688 sq. m. (5[79] plus hectares)[;] the vendor is the Coco-Agro Industrial Co., Inc., represented by Jaime Abeja and the vendee is Hermenegildo Villanueva for a consideration of P500,000.00. Evidently, no money changed hands on this date except the sum of P6,000.00 for land taxes and other expenses because at about the same time, two (2) documents of mortgage were executed by Hermenegildo Villanueva in favor of Jaime Abeja: one for P1,100,000.00 and another for P400,000.00 to secure the payment of the agreed consideration of P1,500,000.00. Although these documents contain the signature of Jaime Abeja as vendor in the document of sale and as mortgagee in the two documents of mortgage, and that of Hermenegildo Villanueva as vendee and mortgagor in the documents of mortgage, Abeja claims that Hermenegildo Villanueva was not present. However, Bobby B. Cafe, Hector Villanueva, and Dr. Reynaldo Ramos were present. Obviously, these documents were prepared and signed by Villanueva beforehand. These mortgages were kept secret although the respondents, including Bobby B. Café, knew of them. x x x The Deed of Sale, enabled Bobby B. Cafe and/or the other respondents to transfer the title from the name of Abeja’s corporation [to]the name of Hermenegildo Villanueva.[12]The bank cannot be faulted for its desire to protect its interest in the subject loans. Since the proceeds thereof were already released and transferred to the bank account of petitioner from that of his father, the bank had to implead the petitioner in the criminal cases.
"x x x And after release, the proceeds were deposited in the account of x x x Hermenegildo Villanueva with UCPB, Dumaguete Branch. Almost immediately, or about a day or two, the proceeds of the loan were withdrawn from the account of Hermenegildo Villanueva and deposited with the newly opened account of [petitioner], son of Hermenegildo Villanueva."[13]
"x x x The evidence also shows that at the time Abeja was in Dumaguete City, on 22 March 1978, when he signed the Memorandum of Agreement, vendee Hermenegildo Villanueva was out of the country. From start to finish, it was only Bobby B. Cafe and Rey Ramos, and at one time Hector Villanueva who had dealings and meetings with Jaime Abeja. x x x."[14]