Quick Answer:
Yes. Under Article 308 of the Revised Penal Code, a person who finds lost property and fails to return it to the owner or to local authorities may be held liable for theft. Philippine law considers lost property as still belonging to its rightful owner, so keeping it for personal gain may constitute theft of lost property.
Introduction
Many people assume that if they find a lost wallet, cellphone, jewelry, or money, they may freely keep it because they did not actually take it from anyone. However, under Philippine law, particularly Article 308 of the Revised Penal Code, a person who finds lost property and fails to return it to its owner or to the proper authorities may be held liable for theft.
Legal Definition of Theft Under Article 308
Article 308 of the Revised Penal Code provides for the crime of theft and enumerates the acts that constitute it:
ART. 308. Who are liable for theft. — Theft is committed by any person who, with intent to gain but without violence against or intimidation of persons nor force upon things, shall take personal property of another without the latter’s consent.
Theft is likewise committed by:
- Any person who, having found lost property, shall fail to deliver the same to the local authorities or to its owner; xxx
Under Philippine law, theft is not limited to physically taking property from another person. The definition is broad and includes among its forms the act of finding lost property and failing to return it to its owner or to the proper authorities.
In other words, theft is not limited to secretly taking another person’s belongings. The law likewise punishes a person who discovers lost property but chooses to appropriate it for personal use instead of taking steps to return it.
As with other forms of theft, intent to gain (animus lucrandi) remains an essential element of the offense. Mere possession of lost property does not automatically constitute theft. Criminal liability arises when the finder appropriates the property for personal benefit instead of returning it to its owner or to the proper authorities.
Why Is Keeping Lost Property Considered Theft?
The law recognizes that although the property was lost, ownership does not transfer to the finder. The rightful owner remains the legal owner of the property. Therefore, when the finder intentionally keeps the property and treats it as his or her own, the finder effectively deprives the true owner of possession and ownership rights.
This act becomes a form of unlawful taking punishable as theft under Article 308 of the Revised Penal Code.
Common Examples of Theft of Lost Property
Keeping a Lost Wallet
Suppose a person finds a wallet containing cash and identification cards in a shopping mall. Instead of attempting to contact the owner or surrendering the wallet to mall security or local authorities, the finder keeps the money and discards the wallet.
Such conduct may give rise to criminal liability for theft under Article 308 of the Revised Penal Code.
Using a Lost Cellphone
A person finds a cellphone left on a restaurant table. Rather than returning it, the finder removes the SIM card and uses or sells the device.
This may likewise constitute theft of lost property, as the finder appropriates the item for personal benefit instead of returning it.
Keeping Money Found in a Public Place
Even when cash is found on the street with no immediate way of identifying the owner, the finder is not automatically entitled to keep it.
The law requires the finder to deliver the property to its owner or to the proper authorities. Failure to do so, especially when there is intent to gain, may result in liability for theft under Article 308.
Supreme Court Ruling on Theft of Lost Property
Philippine jurisprudence has consistently rejected the idea that a finder may freely keep property simply because it was lost. The Supreme Court has held in several cases that lost property remains owned by its rightful owner, and a person who appropriates it despite knowing it belongs to another may be held liable for theft under Article 308 of the Revised Penal Code.
The leading early case on the matter is People v. Avila (G.R. No. 19786, March 31, 1923, 44 Phil. 720), where a woman accidentally left a purse containing money and jewelry in a horse-drawn carriage. The driver found the purse and, knowing its owner, entrusted it to a police officer, Clemente Avila, for return. Instead of returning it, Avila kept the property for himself.
The Supreme Court convicted him of theft. The Court ruled that a person who receives lost property and knowingly appropriates it may be held liable for theft in the same manner as the original finder. This established the principle that lost property does not become ownerless, and ownership remains with the true owner.
A more recent application of this doctrine is found in Pante v. People (G.R. No. 218969, January 18, 2021). In this case, a large sum of money was accidentally dropped and later found by a minor, who informed others. Instead of returning it, the group divided the money among themselves, and the petitioner received a share despite knowing it was not theirs.
The Supreme Court held that the petitioner was guilty of theft. The Court emphasized that the concept of a “finder” under Article 308 includes not only the person who physically discovers the property but also those who receive or participate in its unlawful appropriation. Such persons are considered “finders in law” and may be held criminally liable.
Key Takeaway: A person may be held liable for theft not only as the physical finder of lost property but also as a recipient or participant in its misappropriation. Under Article 308 of the Revised Penal Code, anyone who knowingly appropriates lost property or benefits from it without returning it to the rightful owner or authorities may be considered a “finder in law” and incur criminal liability for theft.
What Should You Do If You Find Lost Property?
To avoid any legal issues, consider taking the following steps:
- Try to identify and contact the owner if possible.
- If the owner cannot be immediately identified or located, turn over the property to the appropriate local authorities, such as the Office of the City or Municipal Mayor or the Barangay Captain of the area where the item was found.
- If the property was found inside a mall, restaurant, office, school, or transportation terminal, surrender it to the establishment’s management or lost-and-found office.
- Document the transfer of the property by requesting an acknowledgment receipt and, if possible, taking a photo or video of the turnover process.
Civil Code Rules on Found Property (Articles 719–720)
Under the Civil Code of the Philippines, there are specific rules governing found movable property. Article 719 provides that a person who finds movable property must return it to its previous possessor. If the owner is unknown, the finder must deposit it with the mayor of the city or municipality where it was found. The law also requires public announcement of the finding and sets procedures for safekeeping, sale if necessary, and eventual disposition of the property if the owner does not appear within the prescribed period.
Article 720 further provides that if the owner appears in time, the finder may be entitled to a reward equivalent to one-tenth of the value of the property found.
These provisions operate alongside criminal law rules and explain the proper civil procedure for handling found property.
Conclusion
Finding lost property does not make the finder its owner. Under Philippine law, a person who comes into possession of lost property and knowingly appropriates it instead of returning it to the rightful owner may incur liability for theft under Article 308 of the Revised Penal Code.
As shown in People v. Avila, the law protects ownership rights even after property has been misplaced, and criminal liability may attach not only to the original finder but also to any person who later receives and unlawfully appropriates the property.
In law, lost property is not abandoned property, and mere possession does not divest the rightful owner of ownership.
Theft is punishable under the Revised Penal Code with imprisonment, the length of which varies depending on the value of the property involved. Read more about theft penalties in the Philippines under the Revised Penal Code, as amended.