Ernesto Mallari vs People of the Philippines

written by Howard

G.R. No. 249374 – Criminal Law – Book II – Crimes Against Property – Estafa; Construction Business; Practice without license – RA 4566

Ernesto Mallari is the owner of E.S. Mallari Trading and Construction Co. He entered into a construction agreement with Spouses Rodolfo and Cynthia Yumang for the construction of a building. Mallari was not able to fulfill his obligations. The Yumangs discovered that Mallari’s construction company was blacklisted by the PCAB (Philippine Contractors Accreditation Board). later, the Yumangs filed an estafa case against Mallari on the ground that he deceived and misled the Yumangs into believing that he and his construction company were qualified and licensed to contract for the construction of their building, even though they were not. By doing so, Mallari convinced complainants to award the construction project to him and part with their money for the implementation of their construction agreement, causing Yumangs damages through defective and unfinished construction works.

In his defense, Mallari averred that he did not contract with the Yumangs as a contractor but rather as an engineer; that as engineer, he may engage into construction business and enter into a construction contract with complainants even without a PCAB license because Section 14 of Republic Act No. 4566 (Contractors’ License Law) exempts engineers from such requirement.

ISSUE: Whether or not Mallari should be convicted.

HELD: Yes. Mallari cannot invoke Section 14 because evidence show that he contracted with the Yumangs as the proprietor of E.S. Mallari Trading and Construction Co which was already blacklisted by PCAB. As a rule, a sole proprietorship does not possess any juridical personality separate and distinct from the owner of the enterprise. Thus, the disqualification of E.S. Mallari Trading and Construction due to defective construction works also pertains to Mallari as they are one and the same person. With more reason, Mallari should have disclosed such disqualification or lack of qualification to the Yumangs.

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