208 - Lozano Vs Martinez Digest

UP Law BGC Eve 2024 Lozano vs Martinez
CRIM 2 BP 22 1986 Yap

SUMMARY DOCTRINE
Petitioners assail the constitutionality of BP 22 on several grounds. See notes below.
Court held BP 22 is constitutional.
FACTS
 “For the purpose of resolving the constitutional issue presented here, we do not find it necessary to delve
into the specifics of the informations involved in the cases which are the subject of the petitions before us.”
 Arguments against constitutionality of BP22:
o (1) it offends the constitutional provision forbidding imprisonment for debt;
o (2) it impairs freedom of contract; (not relevant)
o (3) it contravenes the equal protection clause; (not relevant)
o (4) it unduly delegates legislative and executive powers; and (not relevant)
o (5) its enactment is flawed in that during its passage the Interim Batasan violated the
constitutional provision prohibiting amendments to a bill on Third Reading. (not relevant)
RATIO
Salient features of BP 22
Acts punished
1) a person "who makes or draws and issues any check on account or for value, knowing at the time of issue that
he does not have sufficient funds in or credit with the drawee bank for the payment of said check in full upon
presentment, which check is subsequently dishonored by the drawee bank for insufficiency of funds or credit
or would have been dishonored for the same reason had not the drawer, without any valid reason, ordered the
bank to stop payment."
2) "any person who, having sufficient funds in or credit with the drawee bank when he makes or draws and
issues a check, shall fail to keep sufficient funds or to maintain a credit to cover the full amount of the check if
presented within a period of ninety (90) days from the date appearing thereon, for which reason it is
dishonored by the drawee bank.
Knowledge is essential
An essential element of the offense is "knowledge" on the part of the maker or drawer of the check of the
insufficiency of his funds in or credit with the bank to cover the check upon its presentment.
Prima facie presumption of knowledge
Since this involves a state of mind difficult to establish, the statute itself creates a prima facie presumption of such
knowledge where payment of the check "is refused by the drawee because of insufficient funds in or credit with
such bank when presented within ninety (90) days from the date of the check.
When presumption of knowledge shall not arise
To mitigate the harshness of the law in its application, the statute provides that such presumption shall not arise
if within five (5) banking days from receipt of the notice of dishonor, the maker or drawer makes arrangements
for payment of the check by the bank or pays the holder the amount of the check.
Other presumptions
The introduction in evidence of the unpaid and dishonored check with the drawee bank's refusal to pay "stamped
or written thereon or attached thereto, giving the reason therefor, "shall constitute prima facie proof of "the
making or issuance of said check, and the due presentment to the drawee for payment and the dishonor thereof ...
for the reason written, stamped or attached by the drawee on such dishonored check."
Violation of BP 22 is mala prohibitum
Is BP 22 constitutional? YES
Has BP 22 transgressed the constitutional inhibition against imprisonment for debt? NO
The gravamen of the offense punished by BP 22 is the act of making and issuing a worthless check or a check that
is dishonored upon its presentation for payment. 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 of worthless checks and putting them in circulation. 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.
It is within the prerogative of the lawmaking body to proscribe certain acts deemed pernicious and inimical to
public welfare.
The enactment of BP 22 is a declaration by the legislature that, as a matter of public policy, the making and
issuance of a worthless check is deemed public nuisance to be abated by the imposition of penal sanctions.
The effects of the issuance of a worthless check transcends the private interests of the parties directly involved in
the transaction and touches the interests of the community at large. The mischief it creates is not only a wrong to
the payee or holder, but also an injury to the public. The harmful practice of putting valueless commercial papers
in circulation, multiplied a thousand fold, can very wen pollute the channels of trade and commerce, injure the
banking system and eventually hurt the welfare of society and the public interest.
In sum, we find the enactment of BP 22 a valid exercise of the police power and is not repugnant to the
constitutional inhibition against imprisonment for debt.
Does BP 22 violate freedom to contract? NO
Does BP 22 violate the equal protection of laws clause? NO
Does BP 22 constitute undue or improper delegation of legislative powers? NO
Whether in the enactment of BP 22 the provisions of Section 9 (2) of Article VIII of the 1973
Constitution were violated. NO
FALLO
Petition GRANTED.

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UP Law BGC Eve 2024 Lozano vs Martinez

CRIM 2 BP 22 1986 Yap

Prima facie presumption of knowledge

When presumption of knowledge shall not arise

Violation of BP 22 is mala prohibitum

Does BP 22 violate freedom to contract? NO

Does BP 22 violate the equal protection of laws clause? NO

Does BP 22 constitute undue or improper delegation of legislative powers? NO

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