Adelaida Soriano v. People

Summary

Adelaida Soriano was charged with estafa for allegedly defrauding Consolacion Alagao of P85,607 worth of corn grains through false pretenses. The RTC convicted her, but the Court of Appeals acquitted her of criminal liability while maintaining civil obligation of P74,807. The Supreme Court applied legal compensation principles under the Civil Code, recognizing that both parties were mutual creditors and debtors. Soriano owed P85,607 for corn grains (minus P3,000 paid) while Alagao owed P51,730 from a pre-existing loan (as stipulated during pre-trial). The Court found all requisites for legal compensation present and computed net civil liability at P30,877 plus 6% interest from finality. The case demonstrates automatic compensation by operation of law when parties have liquidated, due and demandable mutual debts consisting of money, emphasizing the binding nature of judicial admissions made during pre-trial.