Payment: Burden of Evidence

 "The next question is: whether the evidence presented by respondent supported its claim of payment.

First, the Court does not agree with the finding of the CA that petitioner no longer questioned the ruling of the RTC regarding the probative value of the duplicate copies of the invoices presented in evidence by petitioner, more specifically the six invoices marked as Exhibits "A-2," "A-5," "A-30," "A-31," "A-32" and "A-33," the original copies of which were not produced by respondent as part of its evidence. A perusal of petitioner's appeal brief shows that petitioner specifically raised the issue of whether the RTC erred in failing to accord evidentiary weight to the invoices presented in evidence by petitioner.

Moreover, the RTC correctly admitted Exhibits "A" to "A-33" in its Order dated August 1, 1997.32 Contrary to the claim of respondent that these pieces of evidence presented by petitioner to prove respondent's indebtedness are mere duplicate copies, the same are considered as original copies because they are carbon copies of the invoices which are in the possession of respondent and they may be introduced in evidence without accounting for the non-production of the other copies.33 Hence, they serve as sufficient proof of the indebtedness of respondent.

Respondent's main evidence consists of 28 original copies of invoices showing the transactions that it had with petitioner. Stamped on the face of each original invoice are the words "PAID" and "AUDITED," duly initialed.

Are these original invoices sufficient to prove payment or, at the least, do the same raise a disputable presumption that respondent had indeed discharged its obligations to petitioner? The Court rules in the negative.

An invoice or bill is a commercial document issued by a seller to the buyer indicating the products, quantities and agreed prices for product or services the seller has provided the buyer.34 An invoice indicates the buyer must pay the seller according to the payment terms.35 From the point of view of a seller, an invoice is a sales invoice.36 From the point of view of a buyer, an invoice is a purchase invoice.37 The document indicates the buyer and seller, but the term "invoice" indicates money is owed or owing.38 The context of the term "invoice" is usually used to clarify its meaning, such as "We sent them an invoice" (they owe us money) or "We received an invoice from them" (we owe them money).39

In Commissioner of Internal Revenue v. Manila Mining Corporation,40 "sales or commercial invoice" is defined as a written account of goods sold or services rendered indicating the prices charged therefor or a list by whatever name it is known which is used in the ordinary course of business evidencing sale and transfer or agreement to sell or transfer goods and services. On the other hand, the same case defines "receipt" as a written acknowledgment of the fact of payment in money or other settlement between seller and buyer of goods, debtor or creditor, or person rendering services, and client or customer.41

Black's Law Dictionary42 defines an invoice as an itemized list of goods or services furnished by a seller to a buyer, usually specifying the price and terms of a sale; a bill of costs.

From the foregoing definitions, an invoice, in and by itself, and as opposed to a receipt, may not be considered evidence of payment. In addition, it does not mean that possession by a debtor of an invoice raises the presumption that it has already paid its obligation. An invoice is simply a list sent to a purchaser, factor, consignee, etc., containing the items, together with the prices and charges, of merchandise sent or to be sent to him; a mere detailed statement of the nature, quantity and cost or price of the things invoiced.43

A close examination of the invoices reveals that the words "PAID" and "AUDITED" were stamped on each of them. However, Adora, who is an employee of respondent in charge of all paid accounts, testified that the word "PAID" were stamped on the documents by the accounting department of respondent and not by the petitioner, and that the word "AUDITED" was stamped by respondent's auditor.44 This is not rebutted by respondent. Thus, the Court finds that the trial court committed a serious error in appreciating the evidence when it discredited petitioner’s claim that its purpose in sending the subject invoices to respondent was only to collect the latter's debt, not to evidence payment by the latter.

Furthermore, respondent's defense of payment is made more untenable by its failure to present any supporting evidence, such as official receipts or the testimony of its employee who actually paid or the one who had direct knowledge of the payment allegedly made in petitioner's favor, to prove that it had indeed paid its obligations to the latter. Respondent is a corporation engaged in the business of importation and local sale of duty-free sporting goods and similar products. It is presumed that it takes ordinary care of its concerns. In fact, as part of its evidence, respondent presented Official Receipt No. 5271545 for the amount of P4,472.00 which it paid as advance freight payment in favor of petitioner. Respondent also presented other copies of official receipts for payments it made to another company, PAC-Atlantic Lines (Philippines) Inc. for the amounts of P10,152.12 and P21,144.92, respectively.46 On this basis, it is difficult to see why respondent did not present any receipt or at least show that it had demanded an official receipt as proof of its payment with respect to the 34 transactions for which payment is being claimed by petitioner. Some of the amounts involved in said transactions were larger than the payments respondent made for which it was issued official receipts. Respondent's witness, Adora, failed to sufficiently explain why it did not have receipts in its possession to prove payment. The witness simply reasoned out that even in the absence of any receipt, she assumed that an account was paid once the accounting department of respondent forwarded to her the original invoice which was stamped "PAID".47 Such testimony, as well as the invoices which were stamped paid, are all self-serving and do not, by themselves, prove respondent's claim of payment.

Settled is the rule that in the course of trial in a civil case, once the plaintiff makes out a prima facie case in his favor, the duty or the burden of evidence shifts to the defendant to controvert the plaintiff’s prima facie case; otherwise, a verdict must be returned in favor of the plaintiff.48 In the instant case, respondent's indebtedness to petitioner has been established. However, respondent failed to meet its burden of proving payment. Hence, judgment must be rendered in petitioner's favor."

ROYAL CARGO CORPORATION, petitioner,

vs. DFS SPORTS UNLIMITED, INC., respondent. G.R. No. 158621, December 10, 2008.

https://lawphil.net/judjuris/juri2008/dec2008/gr_158621_2008.html