Dear Atty. Peachy

A few weeks ago, I bought a used smartphone from an online marketplace. The seller provided a receipt, but I later learned the device was reportedly lost or stolen by someone else and might be traced to a theft case. The seller insists the phone is “clean,” claiming he found it. I paid with cash and did not get a formal warranty or proof of ownership. I have since discovered that the phone may be blocked or could be seized by authorities if it is flagged as stolen.

Am I at legal risk for possessing or using the phone, even if I did not know it was stolen?

What steps should I take to protect myself and potentially return the device if needed?

Are there any laws about “found property” or defective goods that apply to my situation? If the seller turns out to be a scammer, what civil remedies can I pursue?

Maria

θ θ θ

Dear Maria,

Under the Civil Code of the Philippines, a “finder” of lost property is obligated to return it to the owner. If the property is reported stolen, such as your smartphone might be, possession of it can lead to legal complications, even if you were unaware of its status at the time of purchase. While you may not have intended to purchase stolen property, you could face legal risks. Under the Civil Code, one who buys a thing that does not belong to the seller may be liable to the true owner for damages. It is possible that authorities could flag the device as stolen, leading to its seizure, and you could be held responsible for possessing it.

To protect yourself, gather any information you can about the phone’s previous ownership status. If possible, contact the original owner or seller to confirm the legitimacy of the sale. Then, inform your local police station about the situation and provide them with all relevant documentation, including the receipt from the seller. This will help protect you if the authorities come to investigate. If it is confirmed that the phone is indeed stolen, you should promptly return it to the authorities to avoid potential legal repercussions.

If it turns out that the seller misrepresented the phone and you become a victim of fraud, you may seek civil remedies under the Civil Code, which allows for recovery of damages due to deceitful acts. You can file a complaint with the appropriate local court or seek to settle the matter amicably, depending on the circumstances.

While you may not have known about the phone’s status, it is important to act quickly and responsibly to protect your rights and comply with the law.

I hope this information helps you navigate your situation.

Atty. Peachy Selda-Gregorio