The Supreme Court ruled that a pending civil case for collection of sum of money based on dishonored checks does not automatically suspend criminal proceedings for violation of Batas Pambansa Bilang 22 (B.P. Blg. 22), also known as the Bouncing Checks Law. This is because the criminal offense of issuing a worthless check is distinct from the civil obligation to pay a debt. The ruling clarifies that even if a court determines that there is no valid debt, the act of issuing a bouncing check itself is a crime, intended to maintain public confidence in checks as a reliable form of payment.

Checks, Debts, and the Law: Can a Bad Check Be a Crime Even if the Debt is Disputed?

Jesse Yap issued several checks to Evelyn Te, which were later rediscounted to Spouses Mirabueno and Spouses Dimalanta. When these checks bounced due to a closed account, the spouses filed civil cases for collection of money and criminal cases for violation of B.P. Blg. 22 against Yap. Yap argued that the criminal cases should be suspended because the civil cases raised a prejudicial question regarding the validity of the underlying debt. He contended that if the civil court found that there was no valid debt, he should not be held criminally liable for the bounced checks.

A prejudicial question arises when a civil case involves an issue intimately related to a criminal case, and its resolution determines whether the criminal case can proceed. For a prejudicial question to exist, two elements must be present: (1) the civil action involves an issue similar or intimately related to the issue raised in the criminal action; and (2) the resolution of such issue determines whether or not the criminal action may proceed.

The Court of Appeals (CA) disagreed with Yap, holding that the civil cases did not pose a prejudicial question. The CA emphasized that the civil cases focused on whether the complainants were entitled to collect the value of the checks they had rediscounted, not on the validity of the underlying sale between Yap and Te. The Supreme Court (SC) affirmed the CA’s decision, emphasizing the nature of B.P. Blg. 22, ruling that the core issue in the criminal case is the act of issuing a worthless check, irrespective of the validity of the underlying debt or transaction.

The gravamen of the offense punished by B.P. Blg. 22 is the act of making and issuing a worthless check; that is, a check that is dishonored upon its presentation for payment. In Lozano v. Martinez, we have declared that it is not the non-payment of an obligation which the law punishes. The law is not intended or designed to coerce a debtor to pay his debt. The thrust of the law is to prohibit, under pain of penal sanctions, the making and circulation of worthless checks. Because of its deleterious effects on the public interest, the practice is proscribed by the law. The law punishes the act not as an offense against property, but an offense against public order.

The Court clarified that B.P. Blg. 22 aims to maintain public confidence in the use of checks as currency substitutes. This means that the focus is on the act of issuing a bouncing check itself, not necessarily on the reasons behind it. In other words, the validity of the sale is not crucial to the criminal prosecution under B.P. 22. Even if the civil court ruled that Yap was not liable for the debt, he could still be found guilty of violating B.P. Blg. 22 if he knowingly issued checks that were dishonored due to insufficient funds or a closed account.

The ruling distinguished the case from situations where the issue in the civil case directly determines the guilt or innocence in the criminal case, such as in cases of alleged double sale where the validity of the first sale is questioned. In those cases, a finding that the first sale was invalid would negate the element of deceit required for the crime of estafa. However, in cases involving B.P. Blg. 22, the mere act of issuing a bouncing check, regardless of the underlying debt, constitutes the offense. Therefore, the SC held that no prejudicial question existed, and the criminal cases could proceed independently of the civil cases. Yap could raise his defense of lack of consideration during the trial of the criminal cases.

FAQs

What is a prejudicial question?	A prejudicial question is an issue in a civil case that must be resolved before a related criminal case can proceed because the outcome of the civil case will determine the guilt or innocence of the accused in the criminal case.
What is B.P. Blg. 22?	B.P. Blg. 22, also known as the Bouncing Checks Law, penalizes the act of issuing checks that are dishonored due to insufficient funds or a closed account. The law aims to maintain public confidence in checks as a reliable form of payment.
Does a pending civil case automatically suspend a criminal case for B.P. Blg. 22?	No, a pending civil case does not automatically suspend a criminal case for violation of B.P. Blg. 22 unless the issue in the civil case constitutes a prejudicial question that directly affects the guilt or innocence of the accused in the criminal case.
What is the key element for a violation of B.P. Blg. 22?	The key element is the act of issuing a check with knowledge that it will be dishonored upon presentment due to insufficient funds or a closed account. The reason for issuing the check is immaterial.
Can the accused raise defenses in the criminal case even if there’s no prejudicial question?	Yes, the accused can raise defenses during the trial of the criminal case, such as lack of consideration for the issuance of the check. These defenses will be considered by the court in determining guilt or innocence.
What happens if the civil court finds that there was no valid debt?	Even if the civil court finds that there was no valid debt, the accused can still be held liable for violation of B.P. Blg. 22 if it is proven that they knowingly issued a bouncing check.
Why does the law penalize the issuance of bad checks?	The law penalizes the issuance of bad checks to protect public confidence in the reliability of checks as a substitute for currency and to prevent the disruption of trade and banking activities.
What was the court’s ruling in Yap v. Cabales?	The Supreme Court ruled that the civil cases for collection of money did not constitute a prejudicial question that would warrant the suspension of the criminal cases for violation of B.P. Blg. 22 against Jesse Yap. The criminal cases could proceed independently of the civil cases.

This case emphasizes the importance of ensuring sufficient funds when issuing checks. Issuing a check without adequate funds can have serious legal consequences, regardless of the underlying reasons or disputes surrounding the debt. It serves as a strong reminder to all parties involved in commercial transactions to exercise caution and diligence in managing their accounts and issuing checks.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Jesse Y. Yap v. Hon. Monico G. Cabales, G.R. No. 159186, June 05, 2009