Wednesday, August 12, 2015

Intervention by private prosecutor in criminal cases (public crimes) allowed; conditions.



LEE PUE LIONG A.K.A. PAUL LEE 
vs. CHUA PUE CHIN LEE, G.R. No. 181658, August 7, 2013.


“x x x.

Before this Court is a petition1 for review on certiorari under Rule 45 of the 1997 Rules of Civil Procedure, as amended, seeking the reversal of the May 31, 2007 Decision2 and the January 31, 2008 Resolution3 of the Court of Appeals (CA) in CA-G.R. SP No. 81510. The CA affirmed the Orders4 dated August 15, 2003 and November 5, 2003 of the Metropolitan Trial Court (MeTC) of Manila denying (a) the Omnibus Motion5 for the exclusion of a private prosecutor in the two criminal cases for perjury pending before the MeTC, and (b) the Motion for Reconsideration6 of the said order denying the Omnibus Motion, respectively.

X x x.

Hence, this petition raising the following issues:
I

WHETHER OR NOT THE HONORABLE COURT OF APPEALS COMMITTED A GRAVE ERROR WHEN IT UPHELD THE RESOLUTION OF THE METROPOLITAN TRIAL COURT THAT THERE IS A PRIVATE OFFENDED PARTY IN THE CRIME OF PERJURY, A CRIME AGAINST PUBLIC INTEREST; AND
II

WHETHER OR NOT THE HONORABLE COURT OF APPEALS ERRED WHEN IT UPHELD THE RESOLUTIONS OF THE LOWER COURT WHICH IN TURN UPHELD THE RIGHT OF RESPONDENT, AN ALLEGED STOCKHOLDER OF CHI, TO INTERVENE IN THE CRIMINAL CASE FOR PERJURY AS PRIVATE COMPLAINANT ON BEHALF OF THE CORPORATION WITHOUT ITS AUTHORITY.36

Petitioner claims that the crime of perjury, a crime against public interest, does not offend any private party but is a crime which only offends the public interest in the fair and orderly administration of laws. He opines that perjury is a felony where no civil liability arises on the part of the offender because there are no damages to be compensated and that there is no private person injured by the crime.

Petitioner argues that the CA’s invocation of our pronouncement in Lim Tek Goan, cited by Justice Regalado in his book, is inaccurate since the private offended party must have a civil interest in the criminal case in order to intervene through a private prosecutor. Dissecting Lim Tek Goan, petitioner points out that said case involved the crime of grave threats where Lim Tek Goan himself was one of the offended parties. Thus, even if the crime of grave threats did not have any civil liability to be satisfied, petitioner claims that Lim Tek Goan, as a matter of right, may still intervene because he was one of the offended parties.

Petitioner submits that the MeTC erred in allowing the private prosecutor to represent respondent in this case despite the fact that the latter was not the offended party and did not suffer any damage as she herself did not allege nor claim in her Complaint-Affidavit and Supplemental Affidavit that she or CHI suffered any damage that may be satisfied through restitution,37 reparation for the damage caused38 and indemnification for consequential damages.39 Lastly, petitioner asserts that respondent is not the proper offended party that may intervene in this case as she was not authorized by CHI. Thus, he prayed, among others, that Atty. Macam or any private prosecutor for that matter be excluded from the prosecution of the criminal cases, and that all proceedings undertaken wherein Atty. Macam intervened be set aside and that the same be taken anew by the public prosecutor alone.40

On the other hand, respondent counters that the presence and intervention of the private prosecutor in the perjury cases are not prohibited by the rules, stressing that she is, in fact, an aggrieved party, being a stockholder, an officer and the treasurer of CHI and the private complainant. Thus, she submits that pursuant to our ruling in Lim Tek Goan she has the right to intervene even if no civil liability exists in this case.41

The petition has no merit.

Generally, the basis of civil liability arising from crime is the fundamental postulate of our law that "[e]very person criminally liable x x x is also civilly liable."42 Underlying this legal principle is the traditional theory that when a person commits a crime, he offends two entities, namely (1) the society in which he lives in or the political entity, called the State, whose law he has violated; and (2) the individual member of that society whose person, right, honor, chastity or property was actually or directly injured or damaged by the same punishable act or omission.43

Section 1, Rule 111 of the Revised Rules of Criminal Procedure, as amended, provides:

SECTION 1. Institution of criminal and civil actions.—(a) When a criminal action is instituted, the civil action for the recovery of civil liability arising from the offense charged shall be deemed instituted with the criminal action unless the offended party waives the civil action, reserves the right to institute it separately or institutes the civil action prior to the criminal action.

x x x x (Emphasis supplied)

For the recovery of civil liability in the criminal action, the appearance of a private prosecutor is allowed under Section 16 of Rule 110:

SEC. 16. Intervention of the offended party in criminal action.—Where the civil action for recovery of civil liability is instituted in the criminal action pursuant to Rule 111, the offended party may intervene by counsel in the prosecution of the offense. (Emphasis supplied.)

Section 12, Rule 110 of the Revised Rules of Criminal Procedure, as amended, defines an offended party as "the person against whom or against whose property the offense was committed." In Garcia v. Court of Appeals,44 this Court rejected petitioner’s theory that it is only the State which is the offended party in public offenses like bigamy. We explained that from the language of Section 12, Rule 10 of the Rules of Court, it is reasonable to assume that the offended party in the commission of a crime, public or private, is the party to whom the offender is civilly liable, and therefore the private individual to whom the offender is civilly liable is the offended party.

In Ramiscal, Jr. v. Hon. Sandiganbayan,45 we also held that:

Under Section 16, Rule 110 of the Revised Rules of Criminal Procedure, the offended party may also be a private individual whose person, right, house, liberty or property was actually or directly injured by the same punishable act or omission of the accused, or that corporate entity which is damaged or injured by the delictual acts complained of. Such party must be one who has a legal right; a substantial interest in the subject matter of the action as will entitle him to recourse under the substantive law, to recourse if the evidence is sufficient or that he has the legal right to the demand and the accused will be protected by the satisfaction of his civil liabilities. Such interest must not be a mere expectancy, subordinate or inconsequential. The interest of the party must be personal; and not one based on a desire to vindicate the constitutional right of some third and unrelated party.46 (Emphasis supplied.)

In this case, the statement of petitioner regarding his custody of TCT No. 232238 covering CHI’s property and its loss through inadvertence, if found to be perjured is, without doubt, injurious to respondent’s personal credibility and reputation insofar as her faithful performance of the duties and responsibilities of a Board Member and Treasurer of CHI. The potential injury to the corporation itself is likewise undeniable as the court-ordered issuance of a new owner’s duplicate of TCT No. 232238 was only averted by respondent’s timely discovery of the case filed by petitioner in the RTC.

Even assuming that no civil liability was alleged or proved in the perjury case being tried in the MeTC, this Court declared in the early case of Lim Tek Goan v. Yatco,47 cited by both MeTC and CA, that whether public or private crimes are involved, it is erroneous for the trial court to consider the intervention of the offended party by counsel as merely a matter of tolerance. Thus, where the private prosecution has asserted its right to intervene in the proceedings, that right must be respected. The right reserved by the Rules to the offended party is that of intervening for the sole purpose of enforcing the civil liability born of the criminal act and not of demanding punishment of the accused. Such intervention, moreover, is always subject to the direction and control of the public prosecutor.48

In Chua v. Court of Appeals,49 as a result of the complaint-affidavit filed by private respondent who is also the corporation’s Treasurer, four counts of falsification of public documents (Minutes of Annual Stockholder’s Meeting) was instituted by the City Prosecutor against petitioner and his wife. After private respondent’s testimony was heard during the trial, petitioner moved to exclude her counsels as private prosecutors on the ground that she failed to allege and prove any civil liability in the case. The MeTC granted the motion and ordered the exclusion of said private prosecutors. On certiorari to the RTC, said court reversed the MeTC and ordered the latter to allow the private prosecutors in the prosecution of the civil aspect of the criminal case. Petitioner filed a petition for certiorari in the CA which dismissed his petition and affirmed the assailed RTC ruling.

When the case was elevated to this Court, we sustained the CA in allowing the private prosecutors to actively participate in the trial of the criminal case. Thus:

Petitioner cites the case of Tan, Jr. v. Gallardo, holding that where from the nature of the offense or where the law defining and punishing the offense charged does not provide for an indemnity, the offended party may not intervene in the prosecution of the offense.

Petitioner’s contention lacks merit. Generally, the basis of civil liability arising from crime is the fundamental postulate that every man criminally liable is also civilly liable. When a person commits a crime he offends two entities namely (1) the society in which he lives in or the political entity called the State whose law he has violated; and (2) the individual member of the society whose person, right, honor, chastity or property has been actually or directly injured or damaged by the same punishable act or omission. An act or omission is felonious because it is punishable by law, it gives rise to civil liability not so much because it is a crime but because it caused damage to another. Additionally, what gives rise to the civil liability is really the obligation and the moral duty of everyone to repair or make whole the damage caused to another by reason of his own act or omission, whether done intentionally or negligently. The indemnity which a person is sentenced to pay forms an integral part of the penalty imposed by law for the commission of the crime. The civil action involves the civil liability arising from the offense charged which includes restitution, reparation of the damage caused, and indemnification for consequential damages.

Under the Rules, where the civil action for recovery of civil liability is instituted in the criminal action pursuant to Rule 111, the offended party may intervene by counsel in the prosecution of the offense. Rule 111(a) of the Rules of Criminal Procedure provides that, "[w]hen a criminal action is instituted, the civil action arising from the offense charged shall be deemed instituted with the criminal action unless the offended party waives the civil action, reserves the right to institute it separately, or institutes the civil action prior to the criminal action."

Private respondent did not waive the civil action, nor did she reserve the right to institute it separately, nor institute the civil action for damages arising from the offense charged. Thus, we find that the private prosecutors can intervene in the trial of the criminal action.

Petitioner avers, however, that respondent’s testimony in the inferior court did not establish nor prove any damages personally sustained by her as a result of petitioner’s alleged acts of falsification. Petitioner adds that since no personal damages were proven therein, then the participation of her counsel as private prosecutors, who were supposed to pursue the civil aspect of a criminal case, is not necessary and is without basis.

When the civil action is instituted with the criminal action, evidence should be taken of the damages claimed and the court should determine who are the persons entitled to such indemnity. The civil liability arising from the crime may be determined in the criminal proceedings if the offended party does not waive to have it adjudged or does not reserve the right to institute a separate civil action against the defendant. Accordingly, if there is no waiver or reservation of civil liability, evidence should be allowed to establish the extent of injuries suffered.

In the case before us, there was neither a waiver nor a reservation made; nor did the offended party institute a separate civil action. It follows that evidence should be allowed in the criminal proceedings to establish the civil liability arising from the offense committed, and the private offended party has the right to intervene through the private prosecutors.50 (Emphasis supplied; citations omitted.)

In the light of the foregoing, we hold that the CA did not err in holding that the MeTC committed no grave abuse of discretion when it denied petitioner’s motion to exclude Atty. Macam as private prosecutor in Crim. Case Nos. 352270-71 CR.

WHEREFORE, the petition for review on certiorari is DENIED. The Decision dated May 31, 2007 and the Resolution dated January 31, 2008 of the Court of Appeals in CA-G.R. SP No. 81510 are hereby AFFIRMED and UPHELD.

X x x.”


Relevant Footnotes

19 Article 183 of the Revised Penal Code provides:

Art. 183. False testimony in other cases and perjury in solemn affirmation. – The penalty of arresto mayor in its maximum period to prision correccional in its minimum period shall be imposed upon any person who, knowingly making untruthful statements and not being included in the provisions of the next preceding articles, shall testify under oath, or make an affidavit, upon any material matter before a competent person authorized to administer an oath in cases in which the law so requires.

Any person who, in case of a solemn affirmation made in lieu of an oath, shall commit any of the falsehoods mentioned in this and the three preceding articles of this section, shall suffer the respective penalties provided therein.

30 Rodriguez v. Gadiane, 527 Phil. 691 (2006).
31 94 Phil. 197 (1953).
32 Volume II, Seventh Revised Edition, p. 236.
37 Article 105, REVISED PENAL CODE.
38 Article 106, id.
39 Article 107, id.
42 Article 100, Revised Penal Code.
43 Banal v. Judge Tadeo, Jr., 240 Phil. 326, 331 (1987).
44 334 Phil. 621, 631-632 (1997).
45 487 Phil. 384 (2004).
47 Manuel Pamaran, Revised Rules of Criminal Procedure Annotated, 2010 Edition, p. 150.
48 Id. at 200; id. at 149-150, 153.
49 485 Phil. 644 (2004).
50 Id. at 658-660.

Summary of Cited Cases and References:

1.      Lim Tek Goan vs. Yatco, 94 Phil. 197 (1953).;
2.    Regalado in his Remedial Law Compendium, Volume II, Seventh Revised Edition, p. 236.
3.    Banal v. Judge Tadeo, Jr., 240 Phil. 326, 331 (1987).
4.    Garcia v. CA, 334 Phil. 621, 631-632 (1997).
5.     Ramiscal Jr. v. Sandiganbayan, 487 Phil. 384 (2004).
6.    Manuel Pamaran, Revised Rules of Criminal Procedure Annotated, 2010 Edition, p. 150.
7.     Chua v. CA, 485 Phil. 644 (2004).

8.    Rodriguez v. Gadiane, 527 Phil. 691 (2006).