5. Extinguishment

Effect on Criminal Action

There may be a compromise upon the civil liability arising from an offense; but such compromise shall not extinguish the public action for the imposition of the legal penalty. [Art. 2034, CC]

Trigger(s): A person has committed an offense; The offended party and the offender is willing to seek compromise on the civil liability.

Effect: Compromise may extinguish or novate the civil liability but shall not affect criminal liability.

Extinguishment of liability

The civil liability for crimes is extinguished by the same causes provided by the Civil Code for the extinguishment of other obligations. (Revised Penal Code, Art. 112)

NOTE: Death of the accused during the pendency of the case can extinguish the civil liability if the same arose directly from the crime committed. However, this does not apply if civil liability can be based on another source of obligation (i.e., law on human relations). (Asilo, Jr. v. People, G.R. Nos. 159017-18 & 159059)

QUASI-DELICTS/TORTS (OBLIGATION EX QUASI-DELICTO OR EX QUASI MALEFICIO)

It is an act or omission arising from fault or negligence, which causes damage to another, there being no pre-existing contractual relations between the parties. (CIVIL CODE, art. 2176)

Interruption of prescription of actions

• When they are filed before the court
• When there is a written extrajudicial demand by the creditors
• When there is any written acknowledgement of the debt by the debtor (Art. 1155)

Principal Modes of Extinguishment (PaLCoCoCo-No)

• Payment or performance
• Loss of the thing due
• Condonation or remission of debt
• Confusion or merger of rights
• Compensation
• Novation (CIVIL CODE, art. 1231)

Other modes of extinguishment

• Annulment
• Rescission
• Fulfillment of resolutory condition
• Prescription

Not stated in Article 1231 of the Civil Code:

• Death of a party in personal obligations
• Mutual Desistance (Saura Import & Export Co. v. DBP, GR No. L-24968, Apr. 27, 1972)
• Compromise (CIVIL CODE, art. 2028)
• Extinguishment upon expiration of the time fixed for a condition that an event happen (CIVIL CODE, art. 1184)
• Loss of the thing due, including loss through a fortuitous event when the requirements for extinguishment are met (CIVIL CODE, arts. 1231 and 1262; see art. 1165 for circumstances in which the debtor remains liable)
• Arrival of Resolutory Period (CIVIL CODE, art. 1193)

Payment or Performance

PRINCIPLES APPLICABLE FOR VALID PAYMENT OR PERFORMANCE

• Identity
• Integrity or completeness
• Indivisibility

Effect of the remission of the principal debt with respect to the accessory obligation and vice versa

The renunciation of the principal debt shall extinguish the accessory, but the waiver of the latter shall leave the former in force. (NCC, Art. 1273)

NOTE: It is presumed that the accessory obligation of pledge has been remitted when the thing pledged, after its delivery to the creditor, is found in the possession of the debtor, or of a third person who owns the thing. (NCC, Art. 1274)