The United States v. Secundino Mendezona

Summary

The United States prosecuted Secundino Mendezona for estafa, alleging he fraudulently delayed executing a mortgage deed on the Franciscan procuration building offered as security for $600,000 in bank loans, then sold the property declaring it unencumbered. The Supreme Court affirmed dismissal, ruling that Mendezona legitimately owned the property through valid verbal purchase and that mere breach of promise to mortgage, without fraudulent intent at time of contracting, does not constitute criminal estafa. The delay in mortgage execution resulted from administrative processes beyond Mendezona's control, and the property remained legally unencumbered since no formal mortgage was ever properly executed under Civil Code requirements.