JOSE A.

SADDUL vs CA 192 SCRA 277

192 SCRA 277 (Case Digest)
CrimLaw (No. 34)
G-one T. Paisones

Facts:
In 1973, the petitioner became a vice-president and director of Amalgamated Motors
(Phils.) Inc. (AMPI for brevity). AMPI was then a wholly-owned subsidiary of British Leyland.
It was the sole distributor in the Philippines of British and Japanese heavy equipment,
trucks, farm implements, spare parts, and other automotive products and machines
manufactured by Leyland International, Land Rover Ltd. (LAND ROVER for brevity), Avelyn
Barfourd, Mitsubishi, and Furokawa.
In 1985, LAND ROVER supplied P1.5 million worth of spare parts to the Armed Forces
of the Philippines (AFP) through AMPI, but the merchandise were returned to AMPI because
they were not the correct items needed by the AFP. The parts were kept by AMPI pending
disposal instructions from LAND ROVER.
Saddul sold some of the spare parts (worth P143,085.00) to Rover Motor Parts (a
different entity from LAND ROVER) whose president was Jose P. Garcia. Saddul did not
deposit the proceeds of the sales in AMPI's account but held them in trust for LAND ROVER.

Issue:
Whether or not Saddul is guilty of estafa through unfaithfulness or abuse of
confidense?

Held:
No

Ratio:
The accused was acquitted of the crime of estafa with abuse of confidence for the
following reasons:
(1) Saddul received the spare parts from AFP in trust for Land Rover which
authorized him to sell;
(2) Saddul sold them in accordance with the authority given to him;
(3) AMPI not being the owner of the property incurred no loss and suffered injury on
account of Sadul’s retention of proceeds and;
(4) no demand for return was made by AMPI who knew that the spare parts are to
be sold for the account of Land Rover.