The Supreme Court affirmed the conviction of Joy Lee Recuerdo for violating Batas Pambansa Blg. 22 (B.P. 22), also known as the Bouncing Checks Law. The Court clarified that B.P. 22 punishes the act of issuing a worthless check, not the failure to pay a debt. This decision underscores that the law’s primary goal is to maintain public order by ensuring the reliability of checks as substitutes for currency, rather than serving as a tool for debt collection. While imprisonment was initially imposed, the Court modified the penalty to a fine, considering the absence of evidence indicating the petitioner was a repeat offender, allowing her to maintain her livelihood and fulfill her financial obligations.

Dishonored Diamond Deal: Does B.P. 22 Unconstitutionally Target Debtors?

In the case of Joy Lee Recuerdo v. People of the Philippines, the central issue revolves around the constitutionality and application of Batas Pambansa Blg. 22 (B.P. 22) concerning bouncing checks. Petitioner Recuerdo was convicted on five counts of violating B.P. 22 after issuing several checks to Yolanda Floro for a diamond purchase, which were subsequently dishonored due to the closure of Recuerdo’s bank account. The lower courts found her guilty, leading to this appeal where Recuerdo challenged the law’s constitutionality and the sufficiency of evidence against her.

Recuerdo argued that B.P. 22 is unconstitutional, likening it to imprisonment for debt and claiming it unduly favors creditors. She further contended that the law is a bill of attainder, infringing on her right to due process. The Supreme Court, however, firmly rejected these arguments, citing the landmark case of Lozano v. Martinez, which definitively established that B.P. 22 does not punish the non-payment of debt but rather the act of issuing worthless checks that undermine public order.

Building on this principle, the Court emphasized that the intent behind B.P. 22 is to ensure the stability and commercial value of checks as virtual substitutes for currency. The law aims to prevent the circulation of worthless checks, which can have detrimental effects on public interest and economic stability. This approach contrasts with a purely debt-focused perspective, highlighting the law’s broader objective of maintaining confidence in financial transactions.

Recuerdo also argued that the checks were not intended for deposit and that there was a lack of consideration due to a disagreement over the diamond’s value. The Court dismissed this claim, stating that the terms and conditions surrounding the issuance of the checks are irrelevant. Even if a check is issued as evidence of debt and not intended for immediate encashment, it still falls within the ambit of B.P. 22. The crucial factor is whether the drawer knew at the time of issue that there were insufficient funds in the account.

Furthermore, Recuerdo claimed that the prosecution failed to present a bank representative to testify on the dishonor of the checks, thus violating her right to the presumption of innocence. The Court found this argument untenable as well, clarifying that the complainant’s testimony alone is sufficient to prove the dishonor of the checks. Yolanda Floro’s testimony, coupled with the dishonored checks, provided enough evidence to establish the elements of the offense.

The Supreme Court addressed Recuerdo’s allegation of bias on the part of the Court of Appeals, which decided her petition without waiting for the Solicitor General’s comment. The Court stated that this procedural choice did not, in itself, prove bias. Moreover, the Solicitor General did provide a comment on Recuerdo’s motion for reconsideration, mitigating any potential prejudice.

Finally, the Supreme Court addressed the appropriate penalty, referencing Administrative Circulars No. 12-2000 and 13-2001, which grant courts discretion in determining whether a fine alone would serve the interests of justice. Given that there was no evidence suggesting Recuerdo was a repeat offender, the Court modified the penalty from imprisonment to a fine equivalent to double the amount of each dishonored check. This modification acknowledges the importance of allowing Recuerdo to continue her dental practice and fulfill her financial obligations.

FAQs

What is Batas Pambansa Blg. 22 (B.P. 22)?	B.P. 22, also known as the Bouncing Checks Law, penalizes the act of issuing checks with insufficient funds or closed accounts. Its primary goal is to maintain public confidence in checks as a reliable form of payment.
Does B.P. 22 punish non-payment of debt?	No, B.P. 22 does not punish the non-payment of debt. It punishes the act of issuing a worthless check, regardless of the underlying debt or agreement.
What is a bill of attainder?	A bill of attainder is a legislative act that inflicts punishment without a judicial trial. The Court has held that B.P. 22 is not a bill of attainder because it requires proof of every element of the crime in court.
Is the testimony of a bank representative required to prove the dishonor of a check?	No, the testimony of a bank representative is not required. The complainant’s testimony, along with the dishonored check, is sufficient to prove dishonor.
Can a check issued as evidence of debt be a violation of B.P. 22?	Yes, a check issued as evidence of debt, even if not intended for immediate encashment, can be a violation of B.P. 22. The critical factor is the knowledge of insufficient funds at the time of issuance.
What factors did the Supreme Court consider when modifying the penalty to a fine?	The Court considered the absence of evidence indicating Recuerdo was a repeat offender. The modification was to allow her to maintain her dental practice and income to pay the obligations.
What is the main difference between estafa and B.P. 22?	Estafa requires deceit, while B.P. 22 does not. The mere issuance of a bouncing check with knowledge of insufficient funds constitutes a violation of B.P. 22, irrespective of any fraudulent intent.
What happens if the drawer pays after receiving notice of dishonor?	Paying the check’s face value after receiving notice of dishonor may be considered a mitigating circumstance, but it does not automatically absolve the drawer of liability under B.P. 22.

The Recuerdo case reinforces the principle that B.P. 22 serves a crucial role in maintaining public order and the integrity of financial transactions. The Supreme Court’s decision underscores the importance of responsible check issuance and the need to be aware of the legal consequences of issuing checks without sufficient funds.

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: Joy Lee Recuerdo v. People, G.R. No. 133036, January 22, 2003