Can Criminal Cases Be Settled in the Philippines settlement agreement criminal liability Philippines

Can criminal cases be settled in the Philippines? This is one of the most common questions asked by complainants and accused persons after criminal charges have been filed. Parties often assume that once payment has been made, a settlement agreement has been signed, or an affidavit of desistance has been executed, the criminal case will automatically be dismissed.

That assumption is generally incorrect.

Under Philippine law, parties may ordinarily compromise or settle the civil liability arising from a criminal offense, but they generally cannot privately compromise, waive, or extinguish the criminal liability of the accused. Criminal prosecutions are instituted in the name of the People of the Philippines, not solely for the benefit of the private complainant. As a result, the prosecutor and the court—not the complainant—ultimately determine whether a criminal case should proceed.

Article 2034 of the Civil Code expressly recognizes this distinction by allowing compromise with respect to the civil liability arising from an offense while providing that such compromise does not extinguish the public action for the imposition of the criminal penalty.

This guide explains when criminal cases may or may not be settled, the legal effect of settlement agreements, affidavits of desistance, plea bargaining, and the governing rules under Philippine law and Supreme Court jurisprudence.

Can Criminal Cases Be Settled in the Philippines?

The general rule is no.

A criminal offense is considered a public wrong committed against the State. Consequently, criminal liability belongs to the People of the Philippines rather than to the private complainant.

Although the parties may settle monetary claims arising from the offense, they generally cannot privately extinguish criminal liability.

The Supreme Court reaffirmed this principle in Osental v. People of the Philippines, G.R. No. 225697. September 05, 2018 holding that criminal liability cannot ordinarily be compromised because crimes are prosecuted in the name of the State. Likewise, in Team Image Entertainment, Inc. v. Solar Team Entertainment, Inc., G.R. No. 191652, September 13, 2017 the Court ruled that private parties cannot bind the State through agreements requiring the dismissal of criminal cases.

Civil Liability May Be Settled, but Criminal Liability Generally Cannot

One of the most misunderstood principles in Philippine criminal law is the distinction between civil liability and criminal liability.

Civil Liability

The parties may compromise:

Restitution;
Reimbursement;
Actual damages;
Moral damages;
Settlement of money claims;
Payment schedules.

Article 2034 of the Civil Code expressly permits compromise regarding civil liability arising from an offense. However, the same provision expressly provides that such compromise does not extinguish the public criminal action.

Criminal Liability

Criminal liability involves punishment imposed by the State.

Accordingly, payment, reimbursement, or settlement generally does not erase:

Criminal prosecution;
Criminal penalties;
The authority of the prosecutor;
The authority of the court.

The offended party cannot waive or compromise criminal liability imposed by law.

See Osental v. People of the Philippines (2018).

Example: Estafa Settlement

Suppose an accused is charged with estafa.

After the filing of the criminal complaint, the accused pays the complainant the entire amount allegedly misappropriated.

The parties execute a notarized settlement agreement acknowledging full payment.

Does the criminal case automatically disappear?

Generally, no.

The settlement may completely resolve the complainant’s civil claims.

However, the criminal prosecution may still continue because the alleged offense is prosecuted in the name of the People of the Philippines.

Payment alone does not compel the prosecutor or the court to dismiss the criminal case.

Can an Affidavit of Desistance Dismiss a Criminal Case?

One of the most common misconceptions is that executing an Affidavit of Desistance automatically terminates criminal proceedings.

The answer is generally no.

An affidavit of desistance merely expresses the complainant’s decision not to continue pursuing the complaint.

It does not automatically extinguish criminal liability.

In Tadena v. People, G.R. No. 228610. March 20, 2019, the Supreme Court held that affidavits of desistance are generally viewed with caution because they may result from compromise, intimidation, reconciliation, or financial settlement.

Similarly, once the criminal action has commenced, the prosecutor continues to represent the People of the Philippines.

The complainant’s decision to withdraw support does not automatically deprive either the prosecutor or the court of authority to continue prosecution.

What Does a Settlement Agreement Actually Accomplish?

A properly drafted settlement agreement may validly settle the civil aspect of a dispute.

Among other things, it may:

Acknowledge payment;
Settle damages;
Establish installment arrangements;
Waive civil claims;
Resolve reimbursement obligations;
Serve as evidence that the private financial dispute has been resolved.

However, settlement agreements should avoid provisions promising that one party will “cause the dismissal” of a criminal case where dismissal depends upon the prosecutor or the court.

In Team Image Entertainment, Inc. v. Solar Team Entertainment, Inc.,G.R. No. 191652, September 13, 2017 the Supreme Court held that a party could not be considered in breach of a compromise agreement merely because criminal cases were not dismissed, as dismissal ultimately remained beyond private control.

Offers of Compromise Under the Rules on Evidence

The 2019 Amendments to the Rules on Evidence distinguish between civil and criminal cases.

Civil Cases

Generally, an offer of compromise is not considered an admission of liability.

Statements made during compromise negotiations are likewise generally inadmissible, subject to recognized exceptions.

Criminal Cases

The rule is different.

An offer of compromise by the accused may, in certain criminal cases, be admissible as an implied admission of guilt.

Exceptions exist for:

Quasi-offenses; and
Offenses that the law expressly allows to be compromised.

The Rules likewise protect certain plea-bargaining communications and unsuccessful plea negotiations.

Is Plea Bargaining the Same as Settling a Criminal Case?

No.

Plea bargaining and settlement are entirely different legal concepts.

A settlement agreement is generally a private agreement resolving civil liability.

Plea bargaining, on the other hand, is a procedural mechanism governed by Rule 116 of the Rules of Criminal Procedure whereby the accused pleads guilty to a lesser offense with the consent required by law and subject to court approval.

Section 2, Rule 116 provides that an accused may plead guilty to a lesser offense necessarily included in the offense charged, subject to the consent of both the prosecutor and the offended party and the approval of the court.

In Orda v. People,G.R. No. 258894, January 30, 2023 the Supreme Court emphasized that plea bargaining remains a judicial process subject to the court’s discretion.

Likewise, in People v. Montierroyventocilla, G.R. No. 254564, July 26, 2022 the Court recognized plea bargaining as a mechanism promoting the speedy disposition of criminal cases—not as a private settlement extinguishing criminal liability.

Can the Parties Agree to Dismiss the Criminal Case?

Generally, only where dismissal is authorized by law or supported by a legally recognized ground.

Private parties cannot create grounds for dismissal merely by agreement.

Consequently, a criminal case is not automatically dismissed because:

The complainant has been paid;
A settlement agreement has been signed;
An affidavit of desistance has been executed;
The complainant refuses to testify; or
The accused promises future payment.

Whether dismissal is appropriate depends upon:

The specific offense;
Applicable statutes;
Procedural stage;
Available evidence;
Orders of the prosecutor and the court.

Are There Exceptions?

Yes.

Certain statutes expressly allow compromise.

The controlling inquiry is not whether the parties have settled, but whether the law itself authorizes compromise of the specific criminal offense.

The analysis should include:

The offense charged;
The governing statute;
Whether the offense is public or private in character;
Whether compromise is expressly permitted by law;
Whether the matter concerns civil liability, plea bargaining, or criminal disposition.

Can Payment Dismiss Estafa or BP 22 Cases?

Generally, no.

Although payment may satisfy the civil obligation, it does not automatically extinguish criminal liability.

In Osental v. People, G.R. No. 225697. September 05, 2018 the Supreme Court held that payment does not compromise criminal liability imposed by law.

Likewise, in Seares v. Salazar, A.M. No. MTJ-98-1160 November 22, 2000, the Court explained that payment of a dishonored check does not automatically extinguish criminal liability under Batas Pambansa Blg. 22, because the offense punished is the issuance of the bouncing check rather than mere nonpayment of a debt.

Practical Considerations Before Signing a Settlement Agreement

Before entering into any settlement involving a pending criminal matter, parties should:

Identify the exact criminal offense charged;
Clearly distinguish the civil and criminal aspects of the dispute;
Avoid contractual promises guaranteeing dismissal of criminal proceedings;
Evaluate whether plea bargaining is available;
Ensure factual representations remain legally accurate; and
Obtain legal advice before signing the agreement.

Proper drafting minimizes future disputes while avoiding provisions that courts may consider legally ineffective.

Frequently Asked Questions

Can criminal cases be settled in the Philippines?

Generally, only the civil liability arising from the offense may be settled. Criminal liability ordinarily remains subject to prosecution by the State.

Does an affidavit of desistance automatically dismiss a criminal case?

No. It may affect the evidence but does not automatically terminate the prosecution.

Can parties agree to dismiss a criminal case?

Not by private agreement alone. Dismissal depends upon applicable law and the authority of the prosecutor and the court.

Is plea bargaining the same as settlement?

No. Plea bargaining is a court-supervised criminal procedure governed by Rule 116, while settlement ordinarily concerns only civil liability.

Does payment automatically dismiss estafa or BP 22 cases?

Generally, no. Payment may settle the civil obligation but does not automatically extinguish criminal liability.

Final Note

The answer to “Can criminal cases be settled in the Philippines?” is generally no with respect to criminal liability. Philippine law distinguishes between the civil consequences of an offense—which parties may often compromise—and the criminal action, which belongs to the State and is prosecuted in the name of the People of the Philippines.

Settlement agreements, payment, restitution, and affidavits of desistance may significantly affect the civil aspect of a dispute and may influence the presentation of evidence. However, they do not ordinarily compel dismissal of the criminal case. Any disposition of the criminal action remains governed by the Civil Code, the Rules of Court, applicable statutes, and the independent authority of the prosecutor and the trial court.

Related Readings:

This article was prepared by Romualdez Law Offices, a Philippine law firm providing legal services in criminal law, family law, corporate law, civil, property, and dispute resolution.

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Can Criminal Cases Be Settled in the Philippines? Complete Legal Guide (2026)