Today is Monday, June 23, 2014

Republic of the Philippines

SUPREME COURT
Manila
FIRST I!ISI"#
G.R. No. 184622 July 3, 2013
PHILIPPINE OVERSEAS TELECOMMUNICATIONS CORPORATION POTC! AN" PHILIPPINE COMMUNICATIONS SATELLITE CORPORATION
PHILCOMSAT!, Petitione$s,
%s&
VICTOR A#RICA, ERLIN"A I. $IL"NER, S%LVIA &. ILUSORIO, HONORIO PO$LA"OR III, VICTORIA C. "ELOS RE%ES, JOHN $ENE"ICT SIOSON, AN"
JOHN'JANE "OES. Respondents&
' ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( '
G.R. No(. 184)12*14
PHILIPPINE OVERSEAS TELECOMMUNICATIONS CORPORATION POTC! AN" PHILIPPINE COMMUNICATIONS SATELLITE CORPORATION
PHILCOMSAT!, Petitione$s,
%s&
HON. JENN% LIN AL"ECOA*"ELORINO, PAIRING JU"GE O# THE REGIONAL TRIAL COURT O# MA&ATI CIT%*$RANCH 138, VICTOR A#RICA, +u,+o,-./ly
,.+,.(.0-102 PHILCOMSAT, AN" JOHN'JANE "OES.Respondents&
' ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( '
G.R. No. 186066
PHILCOMSAT HOL"INGS CORPORATION, ,.+,.(.0-./ 3y CONCEPCION PO$LA"OR, Petitione$,
%s&
PHILIPPINE COMMUNlCATIONS SATELLITE CORPORATION PHILCOMSAT!, ,.+,.(.0-./ 3y VICTOR A#RICA, Respondent&
' ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( '
G.R. No. 186450
PHILCOMSAT HOL"INGS CORPORATION, ,.+,.(.0-./ 3y ERLIN"A I. $IL"NER, Petitione$,
%s&
PHILCOMSAT HOL"INGS CORPORATION, ,.+,.(.0-./ 3y ENRI6UE L. LOCSIN, Respondent&
) * I S I " #
$ERSAMIN, J.:
+n int$a(co$po$ate dispute in%ol%in, a co$po$ation unde$ se-uest$ation of the P$esidential *o..ission on /ood /o%e$n.ent 0P*//1 falls unde$ the 2u$isdiction of the
Re,ional T$ial *ou$t 0RT*1, not the Sandi,anbayan&
The *ases
These consolidated appeals %ia petitions fo$ $e%ie3 on ce$tio$a$i include the follo3in,4
0a1 /&R& #o&154622 ( the appeal f$o. the dis.issal by the Sandi,anbayan of the petitione$s7 co.plaint fo$ in2unction doc8eted as *i%il *ase #o& 0195 on the
,$ound that the Sandi,anbayan had no 2u$isdiction o%e$ the issue due to its bein, an int$a(co$po$ate dispute:
0b1 /&R& #o&154;12(14 and /&R& #o& 156066 ( the appeals of the <ocsin /$oup 0in $ep$esentation of Philippine "%e$seas Teleco..unications *o$po$ation
0P"T*1, Philippine *o..unications Satellite *o$po$ation 0P=I<*"MS+T1, and Philco.sat =oldin,s *o$po$ation 0P=*1 f$o. the consolidated decision the
*ou$t of +ppeals 0*+1 p$o.ul,ated on Septe.be$ 30, 2005 in *&+&(/&R& SP #o& 10122>, *&+&(/&R& SP #o& 9509; and *&+&(/&R& SP #o& 95399: and
0c1 /&R& #o& 156>90 ( the appeal of the Iluso$io /$oup see8in, the $e%e$sal of the decision p$o.ul,ated by the *+ on July 16, 2005 in *&+&(/&R& SP #o&
10243;&
*o..on +ntecedents
P"T* is a do.estic co$po$ation o$,ani?ed fo$ the pu$pose of, a.on, othe$s, const$uctin,, installin,, .aintainin,, and ope$atin, co..unications satellite syste.s,
satellite te$.inal stations and associated e-uip.ents and facilities in the Philippines&
1
P=I<*"MS+T is also a do.estic co$po$ation& Its pu$poses include p$o%idin, teleco..unications se$%ices th$ou,h space $elay and $epeate$ stations th$ou,hout the
Philippines&
P=* is li8e3ise a do.estic co$po$ation, p$e%iously 8no3n as <ibe$ty Mines, Inc&, and is en,a,ed in the disco%e$y, e'ploitation, de%elop.ent and e'plo$ation of oil& In
199;, <ibe$ty Mines, Inc& chan,ed its na.e to P=*, declassified its sha$es, and a.ended its p$i.a$y pu$pose to beco.e a holdin, co.pany&
2
The o3ne$ship st$uctu$e of these co$po$ations i.plies that 3hoe%e$ had cont$ol of P"T* necessa$ily held 100@ cont$ol of P=I<*"MS+T, and in tu$n 3hoe%e$ cont$olled
P=I<*"MS+T 3ielded 51@ .a2o$ity cont$ol of P=*& Reco$ds $e%eal that P"T* has been o3ned by se%en fa.ilies th$ou,h thei$ indi%idual .e.be$s o$ thei$
co$po$ations, na.ely4 0a1 the Iluso$io Fa.ily: 0b1 the #ieto Fa.ily: 0c1 the Poblado$ Fa.ily: 0d1 the +f$ica Fa.ily: 0e1 the Aenedicto Fa.ily: 0f1 the Ponce )n$ile Fa.ily:
and 0,1 the )li?alde Fa.ily&
3
+tty& Potenciano Iluso$io, the pat$ia$ch of the Iluso$io Fa.ily, o3ned sha$es of stoc8 in P"T*& + bloc8 consistin, of >,400 P"T* sha$es of stoc8 has beco.e the bone of
contention in a p$olon,ed cont$o%e$sy a.on, the pa$ties& +tty& Iluso$io clai.ed that he had incu$$ed the i$e of I.elda Ma$cos du$in, the $e,i.e of P$esident Ma$cos,
leadin, to the Ma$cos spouses7 ,$abbin, f$o. hi. the P"T* sha$es of stoc8 th$ou,h th$eats and inti.idation and 3ithout any %aluable conside$ation, and placin, such
sha$es unde$ the na.es of thei$ alte$ e,os, na.ely4 3,644 sha$es in the na.e of Independent Realty *o$po$ation 0IR*1: 1,;>> sha$es in the na.e of MidPasi, <and
e%elop.ent 0Mid(Pasi,1: and one sha$e in the na.e of Fe$dinand Ma$cos, J$&
4
"n Feb$ua$y 2>, 1956, the )S+ People Po3e$ Re%olution deposed P$esident Ma$cos f$o. po3e$ and fo$ced hi. and his fa.ily to flee the count$y& "n Feb$ua$y 25,
1956, ne3ly(installed P$esident *o$a?on *& +-uino issued )'ecuti%e "$de$ #o& 1 to c$eate the P*// 3hose tas8 3as to assist the P$esident in the $eco%e$y of all ill(
,otten 3ealth a.assed by P$esident Ma$cos, his i..ediate fa.ily, $elati%es, subo$dinates and close associates, 3hethe$ located in the Philippines o$ ab$oad, th$ou,h
the ta8eo%e$ o$ se-uest$ation of all business ente$p$ises and entities o3ned o$ cont$olled by the. du$in, P$esident Ma$cos7 ad.inist$ation, di$ectly o$ th$ou,h no.inees,
by ta8in, undue ad%anta,e of thei$ public office andBo$ usin, thei$ po3e$s, autho$ity, influence, connections o$ $elationships&
>
Subse-uently, Jose C& *a.pos, a self(confessed c$ony of P$esident Ma$cos, %olunta$ily su$$ende$ed to the P*// the p$ope$ties, assets, and co$po$ations he had held in
t$ust fo$ the deposed P$esident& +.on, the co$po$ations su$$ende$ed 3e$e IR* 03hich, in the boo8s of P"T*, held 3,644 P"T* sha$es1 and Mid(Pasi, 03hich, in the
boo8s of P"T*, o3ned 1,;>> P"T* sha$es1& +lso tu$ned o%e$ 3as one P"T* sha$e in the na.e of Fe$dinand Ma$cos, J$&
6
Dith *a.pos7 su$$ende$ of IR* and Mid(Pasi, to the P*//, the o3ne$ship st$uctu$e of P"T* beca.e as follo3s4
"3ne$
@ of Sha$eholdin,s
Iluso$io, +f$ica, Poblado$,
Aenedicto and Ponce )n$ile
Fa.ilies

46&39@
P*// 0IR* and Mid(Pasi,1 39&92@
#ieto Fa.ily 13&12@
)li?alde Fa.ily 0&>;@
Total
100&00@
Dith 39&92@ of the P"T* sha$eholdin,s unde$ its cont$ol, the P*// obtained th$ee out of the se%en seats in the P"T* Aoa$d of i$ecto$s& +t the ti.e, Manuel #ieto, J$&
3as the P$esident of both P"T* and P=I<*"MS+T& =o3e%e$, #ieto, J$& had a fallin, out 3ith othe$ stoc8holde$s& To 8eep cont$ol of the P"T* and P=I<*"MS+T,
#ieto, J$& ali,ned 3ith the P*// no.inees to enable hi. to 3$est fou$ out of se%en seats in the P"T* Aoa$d of i$ecto$s and fi%e out of the nine seats in the
P=I<*"MS+T Aoa$d of i$ecto$s& Thus, #ieto, J$& $e.ained as the P$esident of P"T* and P=I<*"MS+T&
;
"n July 22, 195;, the /o%e$n.ent, $ep$esented by the P*//, filed in the Sandi,anbayan a *o.plaint fo$ $econ%eyance, $e%e$sion, accountin,, $estitution and da.a,es
a,ainst Jose <& +f$ica, Manuel =& #ieto, J$&, P$esident Ma$cos, I.elda R& Ma$cos, Fe$dinand R& Ma$cos, J$&, Robe$to S& Aenedicto, Juan Ponce )n$ile and +tty&
Potenciano Iluso$io&
5
The *o.plaint, doc8eted as SA *i%il *ase #o& 009, alle,ed that the defendants Eacted in collabo$ation 3ith each othe$ as du..ies, no.inees
andBo$ a,ents of defendants Fe$dinand )& Ma$cos, I.elda R& Ma$cos and Fe$dinand R& Ma$cos, J$& in se%e$al co$po$ations, such as the Mid(Pasi, <and e%elop.ent
*o$po$ation and the Independent Realty *o$po$ation 3hich, th$ou,h .anipulations by said defendants, app$op$iated a substantial po$tion of the sha$eholdin,s in
Philippine "%e$seas Teleco..unications *o$po$ation and Philippine *o..unications Satellite *o$po$ation held by the late =ono$io Poblado$, J$&, Jose !alde? and
F$ancisco Reyes, the$eby fu$the$ ad%ancin, defendants7 sche.e to .onopoli?e the teleco..unications indust$y:E that th$ou,h thei$ ille,al acts, they ac-ui$ed ill(,otten
3ealth: that thei$ acts constituted Eb$each of public t$ust and the la3, abuse of $i,hts and po3e$, and un2ust en$ich.ent:E and that thei$ ill,otten 3ealth, $eal and pe$sonal,
Ea$e dee.ed to ha%e been ac-ui$ed 0by the.1 fo$ the benefit of the plaintiff 0Republic1 and a$e, the$efo$e, i.p$essed 3ith const$ucti%e t$ust in fa%o$ of 0the latte$1 and the
Filipino people&E
9
The *o.plaint p$ayed that all the funds, p$ope$ties and assets ille,ally ac-ui$ed by the defendants, o$ thei$ e-ui%alent %alue, be $econ%eyed o$ $e%e$ted to the
/o%e$n.ent: and that the defendants be o$de$ed to $ende$ an accountin, and to pay da.a,es&
10
In his +.ended +ns3e$ 3ith *$oss(*lai. 0a,ainst the Ma$coses1 and Thi$d(Pa$ty *o.plaint a,ainst Mid(Pasi, and IR*, +tty& Iluso$io denied ha%in, ac-ui$ed ill(,otten
3ealth and ha%in, un2ustly en$iched hi.self by conspi$in, 3ith any of the defendants in co..ittin, a b$each of public t$ust o$ abuse of $i,ht o$ of po3e$, statin, that Ehe
has ne%e$ held any public office no$ has he been a ,o%e$n.ent e.ployee:E and that he 3as ne%e$ a du..y o$ a,ent of the Ma$coses& =e inte$posed the affi$.ati%e
defense that he o3ned >,400 P"T* sha$es of stoc8, ha%in, ac-ui$ed the. th$ou,h his honest toil, but the Ma$coses had ta8en the sha$es f$o. hi. th$ou,h th$eats and
inti.idation and 3ithout %aluable conside$ation and then placed the sha$es in the na.es of thei$ alte$ e,os: and that he thus beca.e Ethe hapless %icti. of in2ustice,E 3ith
the $i,ht to $eco%e$ the sha$es and thei$ co$$espondin, di%idends&
11
"n June 25, 1996, afte$ a decade of liti,ation, the Republic, IR* and Mid(Pasi,, and the P*// 0actin, th$ou,h P*// *o..issione$ =e$.ilo Rosal1 ente$ed into a
co.p$o.ise a,$ee.ent 3ith +tty& Iluso$io, 3he$eby +tty& Iluso$io $eco,ni?ed the o3ne$ship of the Republic o%e$ 4,;2; of the P"T* sha$es of stoc8 in the na.es of IR*
and Mid(Pasi,, and, in tu$n, the Republic ac8no3led,ed his o3ne$ship of 6;3 of the P"T* sha$es of stoc8 and unde$too8 to dis.iss *i%il *ase #o& 009 as a,ainst hi.&
The co.p$o.ise a,$ee.ent $ele%antly stated4
D=)R)+S, this *o.p$o.ise +,$ee.ent co%e$s the full, co.p$ehensi%e and final settle.ent of the clai.s of the /"!)R#M)#T a,ainst I<FS"RI" in *i%il *ase #o&
SA(009, pendin, befo$e the Thi$d i%ision of the Sandi,anbayan: the *$oss(*lai. in%ol%in, se%e$al p$ope$ties located in Pa$aGa-ue, Met$o Manila: and the Thi$d(Pa$ty
*o.plaint filed by I<FS"RI", in the sa.e case, in%ol%in, the Fi%e Thousand Fou$ =und$ed 0>,4001 sha$es of stoc8s $e,iste$ed in the na.es of Mid(Pasi, <and
e%elop.ent *o$po$ation 0M<*1 and Independent Realty *o$po$ation 0IR*1, $especti%ely, in the Philippine "%e$seas Teleco..unications *o$po$ation 0P"T*1:
' ' ' '
P$esident Ra.os app$o%ed the co.p$o.ise a,$ee.ent, and di$ected its sub.ission to the Sandi,anbayan fo$ app$o%al th$ou,h his .a$,inal note dated "ctobe$ >,
1996&
12
It 3as not until June 5, 1995, o$ nea$ly t3o yea$s f$o. its e'ecution, ho3e%e$, that the Sandi,anbayan app$o%ed the co.p$o.ise a,$ee.ent, the $esolution fo$ 3hich
$eads4
D=)R)F"R), and as p$ayed fo$ in the Motion dated June 3, 1995, 3hich is he$eby ,$anted&
1& The fo$e,oin, *o.p$o.ise +,$ee.ent dated June 25, 1996 e'ecuted by and bet3een the plaintiff and defendant Potenciano T& Iluso$io is he$eby app$o%ed,
the sa.e not bein, cont$a$y to la3, ,ood .o$als and public policy& The pa$ties the$eto a$e he$eby en2oined to st$ictly abide by and co.ply 3ith the te$.s and
conditions of the said *o.p$o.ise +,$ee.ent&
2& The co.plaint as a,ainst defendant Potenciano T& Iluso$io only in the abo%e(entitled case #o& 0009 is he$eby dis.issed&
3& The Motions fo$ In2unction and *onte.pt, $especti%ely, filed by defendant Potenciano T& Iluso$io a,ainst the /o%e$n.entBP*//, its office$s and a,ents, in
*i%il *ase #o& 0009 a$e he$eby 3ithd$a3n:
4& The Thi$d(Pa$ty *o.plaint and the *$oss(*lai. of defendant Potenciano T& Iluso$io a$e he$eby dis.issed: and
>& The Aoa$d of i$ecto$s, P$esident and *o$po$ate Sec$eta$y of the Philippine "%e$seas Teleco..unications *o$po$ation a$e he$eby o$de$ed to issue the
co$$espondin, stoc8 ce$tificates to, and in the na.es of Potenciano T& Iluso$io, Mid(Pasi, <and e%elop.ent *o$po$ation, and Independent Realty
*o$po$ation, $especti%ely&
13
The $esult 3as the $edist$ibution of the P"T* sha$eholdin,s as follo3s4
1wphi1
"3ne$ @ of Sha$eholdin,s
Iluso$io, +f$ica, Poblado$,
Aenedicto and Ponce )n$ile
Fa.ilies

>1&3;@
P*// 0IR* and Mid(Pasi,1 34&94@
#ieto Fa.ily 13&12@
)li?alde Fa.ily 0&>;@
Total 100&00@
The Iluso$io Fa.ily7s sha$eholdin, beca.e 15&12@, 3hile that of the P*// 0th$ou,h IR* and Mid(Pasi,1 3as $educed to 34&94@& Dith its $educed sha$eholdin,s, the
P*//7s nu.be$ of seats in the P"T* Aoa$d settled at only t3o& The Iluso$io Fa.ily continued its alliance 3ith the +f$ica, Poblado$, Aenedicto and Ponce )n$ile Fa.ilies&
In effect, the co.p$o.ise a,$ee.ent tilted the cont$ol in P"T*, P=I<*"MS+T and P=*, such that the alliance bet3een the #ieto Fa.ily and the P*//, the$etofo$e
do.inant, beca.e the .ino$ity&
14
+fte$ assu.in, the P$esidency in .id(1995, P$esident )st$ada no.inated th$ou,h the P*// Ronaldo Salon,a and Aenito +$aneta, the latte$ a nephe3 of #ieto, J$&, to
the P"T* Aoa$d of i$ecto$s to $ep$esent the IR* and Mid(Pasi, sha$eholdin,s&
1>
+s to the P=I<*"MS+T Aoa$d of i$ecto$s, ho3e%e$, P$esident )st$ada th$ou,h the P*// no.inated fou$ no.inees, na.ely4 Salon,a, +$aneta, *a$.elo +f$ica and
)d,a$do !illanue%a& The no.ination of the fou$ i,no$ed the $eduction of the IR* and Mid(Pasi, sha$eholdin,s in P"T* that should ha%e co$$espondin,ly $educed the
boa$d seats in P=I<*"MS+T that the P*// 3as entitled to f$o. fou$ to only th$ee&
16
"n +u,ust 16, 1995, Mid(Pasi,, $ep$esented by Salon,a, filed in the Sandi,anbayan in *i%il *ase #o& 009 a Motion to !acate the o$de$ dated June 5, 1995 app$o%in,
the co.p$o.ise a,$ee.ent& "n "ctobe$ 2, 1995, IR*, also $ep$esented by Salon,a, filed a si.ila$ .otion& Aoth .otions insisted that the co.p$o.ise a,$ee.ent did not
bind Mid(Pasi, and IR* fo$ not bein, pa$ties the$eto, althou,h they held substantial inte$ests in the P"T* sha$eholdin,s sub2ect of the co.p$o.ise a,$ee.ent: and that
the co.p$o.ise a,$ee.ent 3as %oid because its te$.s 3e$e cont$a$y to la3, ,ood .o$als and public policy fo$ bein, ,$ossly and .anifestly disad%anta,eous to the
/o%e$n.ent&
1;
+side f$o. suppo$tin, the position ta8en by Mid(Pasi, and IR*, P*// added that the co.p$o.ise a,$ee.ent 3as fatally defecti%e fo$ lac8 of any P*// $esolution
autho$i?in, *o..issione$ Rosal to ente$ into the co.p$o.ise a,$ee.ent in behalf of the /o%e$n.ent&
15
"n his pa$t, +tty& Iluso$io %i,o$ously opposed the .otions&
19
"n +u,ust 25, 1995, P=I<*"MS+T stoc8holde$s held an info$.al ,athe$in, at the Manila /olf *lub fo$ the appa$ent pu$pose of int$oducin, the ne3 P*// no.inees to
the stoc8holde$s& u$in, the p$oceedin,s, ho3e%e$, +tty& <uis <o8in, J$& announced that the ,athe$in, 3as bein, conside$ed as a Special P=I<*"MS+T Stoc8holde$s7
Meetin,& Those in attendance then p$oceeded to elect as i$ecto$s and "ffice$s of P=I<*"MS+T #ieto, J$&, <ou$des +f$ica, =ono$io Poblado$ III, Sal%ado$ =i?on,
Salon,a, +$aneta, *a$.elo +f$ica, and )d,a$do !illanue%a 0#ieto /$oup(P*//1&
20
+s a conse-uence, othe$ P=I<*"MS+T stoc8holde$s 0na.ely, Iluso$io, Hat$ina Ponce )n$ile, Fidelity Fa$.s, Inc&, /$eat +sia )nte$p$ises and J+H+ In%est.ents
*o$po$ation1 instituted a *o.plaint 3ith application fo$ the issuance of te.po$a$y $est$ainin, o$de$ 0TR"1 and 3$it of p$eli.ina$y in2unction 0DPI1 in the Secu$ities and
)'chan,e *o..ission 0S)*1 assailin, the election of the i$ecto$s and "ffice$s on se%e$al ,$ounds, such as the lac8 of sufficient notice of the .eetin,, the lac8 of
-uo$u., and the lac8 of -ualifyin, sha$es of those 3ho 3e$e elected& They .aintained that by $eason of P"T*7s 100@ beneficial o3ne$ship of P=I<*"MS+T, the$e
should ha%e been a notice to P"T*, 3hich, upon a p$ope$ boa$d .eetin,, should ha%e appointed p$o'ies to attend the P=I<*"MS+T Stoc8holde$s7 Meetin,& The case
3as doc8eted as S)* *ase #o& 09(95(6056&
21
The S)* issued a TR", and, late$ on, a DPI en2oinin, the #ieto /$oup(P*// f$o. actin, as i$ecto$s and "ffice$s of P=I<*"MS+T and f$o. $ep$esentin, the.sel%es
as such&
22
Salon,a, +$aneta, +f$ica and !illanue%a co..enced in the *+ a special ci%il action fo$ ce$tio$a$i to nullify the DPI issued by the S)* 0*&+&(/&R& SP #"& 4920>1& "n
"ctobe$ 1>, 1995, ho3e%e$, the *+ dis.issed the petition fo$ ce$tio$a$i because of the petitione$s7 failu$e to fu$nish a copy of the petition to the S)*& The dis.issal
beca.e final and e'ecuto$y&
23
Still, Salon,a, +$aneta, +f$ica and !illanue%a b$ou,ht in the *+ anothe$ petition assailin, the DPI issued by the S)* 0*&+&(/&R& SP #o& 493251& The *+ also dis.issed
thei$ petition on "ctobe$ 26, 1999&
24
Fo$ thei$ pa$t, #ieto, J$& and <ou$des +f$ica li8e3ise 3ent to the *+ to assail the DPI issued by the S)* 0*&+&(/&R& SP #o& 49;;01, but on +p$il 19, 2001, the *+
dis.issed the petition& #ieto, J$& initially intended to appeal the dis.issal, but the *ou$t denied his .otion fo$ e'tension of ti.e to file petition fo$ $e%ie3 on ce$tio$a$i&
2>
Follo3in, the enact.ent of Republic +ct #o& 5;99 0Secu$ities Re,ulation *ode1,
26
S)* *ase #o& 09(95(6056 3as t$ansfe$$ed to the RT* in Ma8ati *ity, 3hich $e(
doc8eted it as *i%il *ase #o& 01(540 and $affled it to A$anch 135&
2;
Mean3hile, on Janua$y 15, 1999, P"T* held a Special Stoc8holde$s7 Meetin,, at 3hich the follo3in, 3e$e elected as i$ecto$s of P"T*, na.ely4 Robe$to S& Aenedicto,
+tty& !icto$ +f$ica, Syl%ia Iluso$io, =ono$io Poblado$ III, *$istina +,caoili, Hat$ina Ponce )n$ile, and #ieto, J$& The elected i$ecto$s, e'cept #ieto, J$&, e%entually fo$.ed
the +f$ica(Iluso$io /$oup& The$eafte$, the Aoa$d of i$ecto$s held an o$,ani?ational .eetin, du$in, 3hich they elected the follo3in, as the "ffice$s of P"T*, na.ely4
Robe$to S& Aenedicto 0*hai$.an1: +tty& !icto$ +f$ica 0!ice(*hai$.an1: Syl%ia Iluso$io 0P$esident1: Hat$ina Ponce )n$ile 0!ice P$esident1: Rafael Poblado$ 0T$easu$e$1:
Hitchie Aenedicto 0+ssistant T$easu$e$1: and +tty& !icto$ia de los Reyes 0*o$po$ate Sec$eta$y1&
25
"n ece.be$ 20, 1999, the Sandi,anbayan p$o.ul,ated a $esolution in SA *i%il *ase #o& 009 denyin, IR* and Mid(Pasi,7s .otions to %acate the o$de$ app$o%in, the
co.p$o.ise a,$ee.ent, %i?4
D=)R)F"R), p$e.ises conside$ed, thi$d(pa$ty defendant Mid(Pasi,7s Motion to !acate Resolution +pp$o%in, *o.p$o.ise +,$ee.ent dated +u,ust 16, 1995 and thi$d
pa$ty defendant Independent Realty *o$po$ationIs Manifestation and Motion dated "ctobe$ 2, 1995 and the $edundant and inapp$op$iate concu$$ence of the P*// and
the "S/ a$e he$eby denied fo$ lac8 of .e$it&
The *ou$t also decla$es all P"T* sha$es in the na.e of Mid(Pasi, and IR* as null and %oid& +cco$din,ly, out of the >,400 P"T* sha$es, si' hund$ed se%enty th$ee 06;31
is he$eby di$ected to be issued in the na.e of Potenciano Iluso$io and fou$ thousand se%en hund$ed t3enty se%en 04,;2;1 in the na.e of the Republic of the Philippines&
The Aoa$d of i$ecto$s, P$esident and *o$po$ate Sec$eta$y of the P"T* a$e he$eby o$de$ed to co.ply 3ith this $e-ui$e.ent 3ithin ten 0101 days f$o. $eceipt of this
Resolution&
29
In co.pliance 3ith the $esolution, P"T* *o$po$ate Sec$eta$y !icto$ia de los Reyes effected the cancellation of the sha$es $e,iste$ed in the na.es of IR* and Mid(Pasi,
and issued *e$tificate of Stoc8s #o& 131 co%e$in, the 4,;2; P"T* sha$es in the na.e of the Republic& The$eafte$, *e$tificate of Stoc8s #o& 131 3as t$ans.itted to then
*hief P$esidential <e,al *ounsel and P*// *hai$.an Ma,dan,al )l.a, 3ho ac8no3led,ed $eceipt& Th$ou,h its $esolution dated Janua$y 12, 2000, the Sandi,anbayan
noted the P"T* *o$po$ate Sec$eta$y7s co.pliance&
30
+s ea$lie$ .entioned, the i.ple.entation of the Sandi,anbayan7s $esolution dated ece.be$ 20, 1999 $esulted in the $e(dist$ibution of the sha$eholdin,s in P"T* in the
.anne$ ea$lie$ sho3n&
"n Ma$ch 16, 2000, the P*// filed in this *ou$t its petition assailin, the $esolution of the Sandi,anbayan dated ece.be$ 20, 1999 0/&R& #o& 141;96 entitled Republic
of the Philippines, $ep$esented by the P$esidential *o..ission on /ood /o%e$n.ent %& Sandi,anbayan and Potenciano T& Iluso$io, substituted by Ma& )$linda Iluso$io
Aildne$1&
IR* and Mid(Pasi, also filed in this *ou$t thei$ o3n petition to assail the $esolution dated ece.be$ 20, 1999 0/&R& #o& 141504 entitled Independent Realty *o$po$ation
and Mid(Pasi, <and e%elop.ent *o$po$ation %& Sandi,anbayan and Potenciano T& Iluso$io, substituted by Ma& )$linda Iluso$io Aildne$1&
"n Ma$ch 29, 2000, this *ou$t issued a TR" to en2oin the Sandi,anbayan f$o. e'ecutin, its assailed $esolution&
31
"n Septe.be$ 6, 2000, P$esident )st$ada no.inated anothe$ set to the P=I<*"MS+T Aoa$d of i$ecto$s, na.ely4 *a$.elo +f$ica, Fede$ico +,caoili, Pacifico Ma$celo
and )d,a$do !illanue%a& The$eby, +f$ica and !illanue%a 3e$e $etained as P=I<*"MS+T i$ecto$s, 3hile +,caoili and Ma$celo $eplaced +$aneta and Salon,a&
32
Subse-uently, P"T*, th$ou,h the +f$ica(Aildne$ /$oup, decided to hold a Special Stoc8holde$s7 Meetin, on Septe.be$ 22, 2000& P"T* *o$po$ate Sec$eta$y de los
Reyes issued a #otice of Meetin,& +tte.ptin, to stop the Stoc8holde$s7 Meetin,, #ieto, J$&, +$aneta and Salon,a filed in this *ou$t in /&R& #o& 141;96 and /&R&
#o&141504 a Motion fo$ <ea%e to Inte$%ene 3ith u$,ent .anifestation fo$ conte.pt of cou$t, p$ayin,, a.on, othe$s, that P"T* *o$po$ate Sec$eta$y de los Reyes be cited
in conte.pt andBo$ disba$$ed fo$ issuin, the #otice of Meetin,&
33
The Special Stoc8holde$s7 Meetin, on Septe.be$ 22, 2000 3as attended by stoc8holde$s $ep$esentin, 51&32@ of the outstandin, capital stoc8 of P"T* 0includin,
P*//1& u$in, the .eetin,, a ne3 set of P"T* Aoa$d of i$ecto$s 3e$e elected, na.ely4 #ieto, J$&, Hat$ina Ponce )n$ile, !icto$ !& +f$ica, Syl%ia H& Iluso$io, =ono$io +&
Poblado$ III, *a$.elo +f$ica and P*// *o..issione$ Jo$,e Sa$.iento 0the latte$ t3o bein, no.inated by P*//1&
34
P"T* then con%ened a Special Stoc8holde$s7 Meetin, of P=I<*"MS+T, at 3hich the follo3in, 3e$e elected as i$ecto$s4 #ieto, J$&, F$ancisca Aenedicto, Hat$ina Ponce
)n$ile, Syl%ia Iluso$io, =ono$io Poblado$ III, and ,o%e$n.ent $ep$esentati%es +f$ica, Ma$celo, !illanue%a and +,caoili 0the latte$ fou$ bein, no.inated by P*//1&
3>
In line 3ith e'istin, co$po$ate policy $e-ui$in, the elected i$ecto$s to accept thei$ election befo$e assu.in, thei$ positions, all the elected i$ecto$s 0includin, #ieto, J$&1
3e$e $e-uested to si,n acceptance lette$s to be sub.itted to P"T* *o$po$ate Sec$eta$y de los Reyes& + fe3 days late$, ho3e%e$, #ieto, J$& $efused to accept and
instead opted to assail the %alidity of the Septe.be$ 22, 2000 P"T* Special Stoc8holde$s7 Meetin,&
36
Ay %i$tue of the Septe.be$ 22, 2000 elections, the +f$ica(Aildne$ /$oup, to,ethe$ 3ith the P*// no.inees, too8 cont$ol of the .ana,e.ent and ope$ations of P"T* and
P=I<*"MS+T&
3;
In Ma$ch 2002, P$esident /lo$ia Macapa,al(+$$oyo na.ed )n$i-ue <& <ocsin and Manuel & +ndal as ne3 P*// no.inees to sit in the P"T* and P=I<*"MS+T
Aoa$ds of i$ecto$s& Julio Jalandoni 3as na.ed as the thi$d ne3 P*// no.inee to the P=I<*"MS+T Aoa$d of i$ecto$s&
35
"n +p$il 29, 2002, P"T*, th$ou,h the +f$ica(Iluso$io /$oup, decided to hold a stoc8holde$s7 .eetin,& #otices fo$ the .eetin, 3e$e dispatched to all stoc8holde$s of
$eco$d, includin, the Republic& =o3e%e$, the .eetin, 3as ad2ou$ned fo$ failu$e to obtain a -uo$u. because of the absence of se%e$al stoc8holde$s, includin, the p$o'y
fo$ the Republic&
39
"n ece.be$ 3, 2003, +tty& Jose Ma& "?a.i?, a stoc8holde$ of P=*, sent a lette$(co.plaint info$.in, the S)* that P=* had not conducted its annual stoc8holde$s7
.eetin,s since 2001& =is lette$(co.plaint 3as doc8eted as S)* *ase #o& 12(03(03&
40
"n ece.be$ 29, 2003, the S)* issued the follo3in, "$de$ in S)* *ase #o& 12(03(03, to 3it4
PR)MIS)S *"#SI)R), the *o..ission in the e'e$cise of its $e,ulato$y autho$ity o%e$ co$po$ations and associations $e,iste$ed 3ith it he$eby issues the follo3in,
di$ecti%es4
1& The boa$d of di$ecto$s, $esponsible office$s of Philco.sat =oldin,s, Inc 0P=I1 0sic1 shall o$,ani?e a *"M)<)* co.posed of th$ee .e.be$s 3ithin ten 0101 days f$o.
date of actual $eceipt of this "$de$& "ne .e.be$ to be no.inated by the ,$oup of +tty& Jose Ma& "?a.i?, the second .e.be$ to be no.inated by the ,$oup of eithe$ M$&
Manuel =& #ieto o$ M$& *a$.elo P& +f$ica, J$& and the thi$d .e.be$ a neut$al pa$ty, to be 2ointly no.inated by both ,$oups& Failu$e on the pa$t of the contendin, pa$ties to
desi,nate thei$ co..on no.inee, the S)* shall be const$ained to desi,nate the neut$al pa$ty&
' ' ' '&
41
Ay lette$ dated Janua$y 5, 2004, Philip A$odett and <ocsin co..unicated to the S)* that4
1& P=* and its di$ecto$s and office$s a$e not a%e$se to the holdin, of .eetin,s of its stoc8holde$s annually& P=*Is inability to hold its annual stoc8holde$s7 .eetin, in the
past yea$s can be att$ibuted to the follo3in,4 p$e%ious atte.pts of the ,$oup of Mesda.es *$istina Iluso$io and Syl%ia Iluso$io and M$& *a$.elo +f$ica 0fo$ b$e%ity the
EIluso$io /$oupE1 to cont$ol P=* 3ithout le,al basis: delay in the co.pletion of P=*Is audited financial state.ents fo$ the yea$s 2001, 2002 and 2003 3as caused by the
Iluso$io /$oup and the pendin, dispute as to 3ho bet3een the Iluso$io /$oup, on one hand, and the ,$oup of +.bassado$ Manuel #ieto, J$& Philippine /o%e$n.ent, on
the othe$, p$ope$ly constitutes the ,o%e$nin, boa$d of di$ecto$s and office$s of the pa$ent co.panies of P=*Is, na.ely the Philco.sat and P"T*:
*onside$in, the afo$esaid pendin, dispute as to 3ho $eally cont$ols the .othe$ co.panies of P=*, it 3ould be ad%isable and p$acticable that the annual .eetin,s of the
stoc8holde$s and the election of the di$ecto$s and office$s of Philco.sat and P"T* should p$ecede those of P=*& In %ie3 the$eof, and fo$ p$actical $easons and ,ood
o$de$Is sa8e, it 3as su,,ested that pe$haps the *o..ission should di$ect the holdin, of the annual stoc8holde$sI .eetin,s and election of di$ecto$s and office$s of both
Philco.sat and P"T* at a date o$ dates p$io$ to those of P=*&
' ' ' '
4& ' ' '& *onside$in, the fo$e,oin,, it is belie%ed and hu.bly sub.itted that the I*"M)<)*I di$ected to be o$,ani?ed unde$ the "$de$ is unnecessa$y conside$in, that its
3ould(be functions 03e note that the "$de$ did not state 3hat a$e the functions of said *"M)<)*1 can and 3ill be pe$fo$.ed by the #o.ination *o..ittee and the
special co..ittee of inspecto$s&
*onside$in, the fo$e,oin,, it is $espectfully $e-uested and p$ayed that the said "$de$ dated > Janua$y 2004 of the *o..ission be $econside$ed and set aside& To enable
P=* to hold an o$de$ly and cont$o%e$sy(f$ee .eetin, of its stoc8holde$s and election of di$ecto$s this yea$, it is li8e3ise $e-uested that the *o..ission fi$st di$ect and
cause P=*Is pa$ent co.panies, na.ely Philco.sat and P"T*, to hold thei$ $especti%e stoc8holde$sI .eetin, and election and di$ecto$s and office$s p$io$ to those of
P=*&
42
"n May 6, 2004, the S)* $uled as follo3s4
Aased on the fo$e,oin, p$e.ises, the *o..ission, in the e'e$cise of its $e,ulato$y autho$ity as 3ell as supe$%ision co$po$ations and pu$suant to its po3e$ unde$ Section
> 081 of the Secu$ities Re,ulation *ode 0SR*1 3hich states4 E*o.pel the office$s of any $e,iste$ed co$po$ation o$ association to call .eetin,s of stoc8holde$s o$ .e.be$s
the$eof unde$ its supe$%ision,E he$eby o$de$s the follo3in,4
1& The boa$d of di$ecto$s, $esponsible office$s of Philco.sat =oldin,s, *o$po$ation 0EP=*E1 shall i..ediately con%ene the *"M)<)* to conside$ the p$oposed
election and annual .eetin, of sub2ect co$po$ation&
2& The boa$d of di$ecto$s and othe$ $esponsible P=* office$s a$e also en2oined to p$epa$e p$ope$ notices of the intended annual .eetin, and all the necessa$y
docu.ents $e-ui$ed by Section 20 of the SR* $ules 3ithin the stated pe$iod p$o%ided the$eunde$ in ti.e fo$ the scheduled annual .eetin, set by the
*o..ission&
3& Fo$ the pu$pose of the .eetin,, +ttys& Myla /lo$ia *& +.boy and #icano$ Pat$icio a$e he$eby desi,nated as the S)* $ep$esentati%es to obse$%e the P=*
.eetin,&
4& The P=* and all its $esponsible di$ecto$s o$ office$s a$e he$eby di$ected to hold a .eetin, fo$ the pu$pose of conductin, the election of the boa$d of di$ecto$s
of the P=* on 25 May 2004 at 10400 a&.& To be held at the p$incipal office of the co$po$ation&
>& Failu$e on the pa$t of the autho$i?ed pe$son to setBcall the .eetin, 3ithin fi%e 0>1 days f$o. date he$eof, +tty& "?a.i? shall be autho$i?ed to call the .eetin,
and to p$o%ide othe$ stoc8holde$s 3ith notice $e-ui$ed unde$ the *o$po$ation *ode, the Secu$ities Re,ulation *ode and Ay(la3s of the co$po$ation& In such
e%ent, +tty& "?a.i? shall p$eside in said .eetin, until at least a .a2o$ity of the P=* stoc8holde$s p$esent shall ha%e chosen one of thei$ .e.be$s as the
p$esidin, office$ in the .eetin,&
6& The boa$d of di$ecto$s and autho$i?ed office$s of P=* a$e he$eby di$ected fo$ the last ti.e to sub.it the calenda$ of acti%ities fo$ the fo$thco.in, .eetin,
3ithin fi%e 0>1 days f$o. date of this "$de$& The petitionin, stoc8holde$, +tty& "?a.i?, is li8e3ise di$ected to sub.it his p$oposed calenda$ of acti%ities 3hich
shall be used in case of failu$e on the pa$t of P=* to sub.it the afo$esaid calenda$&
43
"n June ;, 2004, the S)* $ecei%ed P*//7s co..ent th$ou,h *o..issione$ !icto$ia +& +%ena, to 3it4
1& Fo$ the sa8e of accu$acy, 3e $espectfully d$a3 attention to the fact that Mess$s& )n$i-ue <& <ocsin and Manuel +ndal a$e no.inee(di$ecto$s $ep$esentin, the
Republic of the Philippines, th$ou,h the P*//, in the boa$d of di$ecto$s of the Philippine "%e$seas Teleco..unications *o$po$ation 0EP"T*E1 and the boa$d
of di$ecto$s of Philippine *o..unications Satellite *o$po$ation 0EPhilco.satE1, but not of Philco.sat =oldin,s *o$po$ation 0EP=*E1& The thi$d ,o%e$n.ent
no.inee(di$ecto$ in Philco.sat is M$& Julio Jalandoni& In Feb$ua$y of 2004, M$& /uy de <eon 3as no.inated by P$esident /lo$ia Macapa,al(+$$oyo as a thi$d
di$ecto$ fo$ P"T* in the e%ent elections&
2& Aased on the $eco$ds of P*//, it is t$ue and co$$ect that P"T* has not held an uncontested annual .eetin, since its last uncontested stoc8holde$sI
.eetin, in the yea$ 1999&
3& Aased on $eco$ds of P*//, it is t$ue and co$$ect that Philco.sat has not had an uncontested annual .eetin, since its special stoc8holde$sI .eetin, in the
yea$ 2000&
4& The Republic o3ns fo$ty pe$cent 040@1 of the outstandin, capital stoc8 of P"T*: Philco.sat is a 3holly(o3ned subsidia$y of P"T*: and Philco.sat o3ns
app$o'i.ately ei,hty(fi%e pe$cent 05>@1 of the outstandin, capital stoc8 of P=*&
>& Aecause of the non(holdin, of elections fo$ the boa$d of di$ecto$s of P"T*, Philco.sat and P=*, the incu.bent $especti%e boa$ds the$eof ha%e been
holdin, office as Ehold(o%e$E di$ecto$s, and opposin, stoc8holde$s ha%e contested thei$ le,iti.acy&
6& The incu.bent boa$d of di$ecto$s ha%in, actual co$po$ate cont$ol of P"T* and Philco.sat ha%e in%ited ,o%e$n.ent no.inee(di$ecto$s Mess$s& <ocsin and
+ndal, and M$& Julio Jalandoni in $espect of Philco.sat, to $especti%ely occupy seats in said boa$ds $ende$ed %acant by $esi,nations&
;& =o3e%e$, Mess$s& <ocsin, +ndal and Jalandoni ha%e not physically and actually assu.ed said positions, because of thei$ $e-uest fo$ assu.ption the$eof on
the basis of election fo$ the boa$d of di$ecto$s th$ou,h stoc8holde$sI .eetin,s fo$ the pu$pose&
5& In %ie3 of the o3ne$ship st$uctu$e of P"T*, Philco.sat and P=* and the $u.p boa$ds that ha%e $esulted o%e$ the yea$s, the .o$e 2udicious .ode to3a$ds a
t$uly fai$ election of di$ecto$s based on an accu$ate identification of stoc8holde$ $ep$esentation in P=* 0includin, in $espect of ,o%e$n.ent sha$es1 3ould be to
dete$.ine issues of $ep$esentation in Philco.sat and P"T*&
9& +cco$din,ly, annual stoc8holde$sI .eetin,s and election of di$ecto$s of the boa$d .ust fi$st be held fo$ P"T*, and then fo$ Philco.sat, then fo$ P=*&
44
"n July 5, 2004, the S)* di$ected thus3ise4
"n the bases of the .andato$y p$o%ision of Sec& >0 of the *o$po$ation *ode on callin, of annual .eetin, and the P*//Is co..entB.anifestation 3hich should be ,i%en
3ei,ht, the follo3in, a$e he$eby di$ected to4
1& P"T* and Philco.sat, thei$ $especti%e boa$d of di$ecto$s o$ thei$ duly autho$i?ed $ep$esentati%es a$e he$eby di$ected to constitute, 3ithin ten 0101 days f$o.
the date of actual $eceipt he$eof, thei$ *"M)<)* to be co.posed of the P*// no.ineeBdi$ecto$ to act as the neut$al pa$ty, a $ep$esentati%e f$o. the +f$ica
/$oup and one $ep$esentati%e f$o. #ieto /$oup to pe$fo$. any and all acts necessa$y fo$ the dete$.ination of the le,iti.ate stoc8holde$s of the co$po$ation
-ualified to %ote o$ be $ep$esented in the co$po$ate .eetin,s and ensu$e a clean, o$de$ly, and c$edible election of P"T* and Philco.sat&
2& P"T* is li8e3ise di$ected to conduct its annual stoc8holde$sI .eetin, not late$ than > +u,ust 2004 3hile Philco.sat shall hold its annual stoc8holde$sI
.eetin, on o$ befo$e 12 +u,ust 2004& The$eafte$, P=* shall call its annual stoc8holde$sI .eetin, not late$ than +u,ust 31, 2004&
3& P=*, on the othe$ hand, its boa$d of di$ecto$s o$ duly autho$i?ed $ep$esentati%e a$e o$de$ed to sub.it a $e%ised calenda$ of acti%ities fo$ the fo$thco.in, 31
+u,ust 2004 annual stoc8holde$sI .eetin, 3ithin fi%e 0>1 days f$o. actual $eceipt of this "$de$& The said date fo$ the +nnual Stoc8holde$sI Meetin, shall not be
postponed unless 3ith p$io$ "$de$ of the *o..ission& + no.inationIs 0sic1 *o..ittee 0#"M)<)*1 shall be constituted pu$suant to the co$po$ationIs Manual
on *o$po$ate /o%e$nance sub.itted to this *o..ission& This *o..ittee shall be co.posed of th$ee 031 %otin, .e.be$s and one 011 non(%otin, .e.be$ in
the pe$son of the =R i$ecto$BMana,e$ pu$suant to ' ' ' section 2&2&2&1 of the said Manual& "ne $ep$esentati%e each f$o. the +f$ica /$oup and the #ieto
/$oup and a no.ineeB$ep$esentati%e of the P*// 0to act as an independent .e.be$1 shall co.p$ise th$ee 031 %otin, .e.be$s& The co..ittee shall pe$fo$.
the functions outlined in Sections 2&2&2&1&1, 2&2&2&1&2, 2&2&2&1&3 and 2&2&2&1&4 of the Manual in connection 3ith the fo$thco.in, election& Failu$e to sub.it the
na.es of the $ep$esentati%e of each ,$oup 3ithin ten 0101 days f$o. $eceipt of this "$de$ shall autho$i?e the *o..ission to appoint pe$sons to $ep$esent each
,$oup& Failu$e o$ $efusal on the pa$t of the co$po$ation to hold the stoc8holde$sI .eetin, on the scheduled date shall autho$i?e the petitionin, sha$eholde$ to call
and p$eside in the said .eetin, pu$suant to Section >0 of the *o$po$ation *ode& +ll p$e%ious o$de$s inconsistent he$e3ith a$e he$eby $e%o8ed&1wphi1
4& <et the *o$po$ate Finance epa$t.ent 0*F1 of this *o..ission be fu$nished 3ith a copy of this "$de$ fo$ its app$op$iate action on the .atte$&
>& To ensu$e p$otection of the inte$est of all outstandin, capital stoc8s, includin, .ino$ity sha$eholde$s, +ttys& #icano$ P& Pat$icio J$& and Myla /lo$ia +& +.boy
a$e he$eby desi,nated as S)* $ep$esentati%es to attend and supe$%ise the said +nnual Stoc8holde$sI Meetin,&
4>
"n July 26, 2004, the S)* cla$ified its i..ediately p$ecedin, o$de$, as follo3s4
Pendin, conside$ation by the *o..ission is the lette$ dated 22 July 2004 of M$& )n$i-ue <ocsin, #o.ineesBi$ecto$ of the P$esidential *o..ission on /ood
/o%e$n.ent To P"T* and Philco.sat, see8in, to en2oin the holdin, of any and all .eetin,s of P"T*, Philco.sat andBo$ P=*, cont$a$y to the 5 July 2004 S)* "$de$
and $e-uestin, the co$$ection of the date of the "$de$ cited in the 22 July 2004 Stay "$de$&
In o$de$ to cla$ify the "$de$ issued by the *o..ission on July 5, 2004 and 22 July 2004, the follo3in, e'plications a$e he$eby .ade4
Fi$st& The S)* "$de$ of 5 July 2004 3hich states in pa$t4
P"T* is li8e3ise di$ected to conduct its annual stoc8holde$sI .eetin, not late$ than > +u,ust 2004 3hile Philco.sat shall hold its annual stoc8holde$sI .eetin, on o$
befo$e 12 +u,ust 2004& The$eafte$, P=* shall call its annual stoc8holde$sI .eetin, not late$ than +u,ust 31, 2004, should be inte$p$eted to .ean that the stoc8holde$sI
.eetin, of P"T*, Philco.sat and P=* should be held successi%ely, in the o$de$ .entioned, that is, P"T* fi$st, then Philco.sat, and lastly, P=*& This 3as the intention
of the *o..ission in issuin, the said "$de$ 0July 5, 20041&
To fu$the$ cla$ify and ensu$e that the .eetin,s shall be conducted on specific dates, the "$de$ of July 5, 2004 is he$eby .odified and the dates of the .eetin,s a$e
he$eby scheduled as follo3s4
1& Fo$ P"T* J July 25, 2004
2& Fo$ Philco.sat J +u,ust 12, 2004
3& Fo$ P=* J +u,ust 31, 2004
Second& "ne of the $ele%ant o$de$s 3as inad%e$tently $efe$$ed to in the Stay "$de$ of 22 July 2004 as EJune 5, 2004,E 3hich should ha%e been actually 3$itten as EJuly 5,
2004&E =ence, the sa.e should be p$ope$ly co$$ected&
+cco$din,ly, P"T*, Philco.sat and Philco.sat =oldin,s *o$po$ation 0P=*1 a$e he$eby $e.inded to st$ictly adhe$e to the schedule dates of .eetin,s of the said
co$po$ations set fo$th in this "$de$& P"T*, Philco.sat and P=* a$e fu$the$ $e.inded to also co.ply 3ith the .anne$ of the conduct of thei$ $especti%e .eetin,s as
p$o%ided in the "$de$ of the *o..ission dated July 5, 2004&
+s $e-uested, let the 22 July 2004 Stay "$de$, pa$ticula$ly pa$a,$aphs 1, 2, and 3 the$eof, be co$$ected to $eflect the co$$ect date of the "$de$ cited the$ein as EJuly 5,
2004E not EJune 5, 2004&E
46
"n July 25, 2004, the +f$ica(Aildne$ /$oup held successi%e stoc8holde$s7 .eetin,s fo$ P"T* and P=I<*"MS+T& )lected as i$ecto$s du$in, the P"T* stoc8holde$s7
.eetin, 3e$e Hat$ina Ponce )n$ile, !icto$ +f$ica, )$linda Aildne$ and =ono$io Poblado$ III, all f$o. the +f$ica(Ailde$ /$oup& +lthou,h absent f$o. the .eetin,, #ieto, J$&,
<ocsin and +ndal of the #ietoKP*// /$oup 3e$e also elected as i$ecto$s& Resultantly, the ,$oups 3e$e $ep$esented on a 443 $atio& !icto$ +f$ica 3as desi,nated as the
P"T* p$o'y to the P=I<*"MS+T stoc8holde$s7 .eetin,&
<ocsin and +ndal 3e$e also elected as P=I<*"MS+T i$ecto$s& =o3e%e$, #ieto, J$&, <ocsin and +ndal did not accept thei$ election as P"T* and P=I<*"MS+T
i$ecto$s&
4;
"n +u,ust >, 2004, the #ieto(P*// /$oup conducted the annual stoc8holde$s7 .eetin, fo$ P"T* at the Manila /olf *lub& )lected 3e$e #ieto, J$& as P$esident and /uy
de <eon, a ,o%e$n.ent no.inee to P"T*, as *hai$.an& +t the sa.e .eetin,, the #ieto(P*// /$oup, th$ou,h its elected Aoa$d of i$ecto$s, issued a p$o'y in fa%o$ of
#ieto, J$& andBo$ <ocsin autho$i?in, the. to $ep$esent P"T* and %ote the P"T* sha$es in the P=I<*"MS+T stoc8holde$s7 .eetin, scheduled on +u,ust 9, 2004&
45
"n +u,ust 9, 2004, the #ieto(P*// /$oup held the stoc8holde$s7 .eetin, fo$ P=I<*"MS+T at the Manila /olf *lub& I..ediately afte$ the stoc8holde$s7 .eetin,, an
o$,ani?ational .eetin, 3as held, and #ieto, J$& and <ocsin 3e$e $especti%ely elected as *hai$.an and P$esident of P=I<*"MS+T& +t the sa.e .eetin,, P=I<*"MS+T
0#ieto(P*// /$oup1 issued a p$o'y in fa%o$ of #ieto, J$& andBo$ <ocsin autho$i?in, the. to $ep$esent P=I<*"MS+T and %ote the P=I<*"MS+T sha$es in the
stoc8holde$s7 .eetin, of P=* scheduled on +u,ust 31, 2004&
49
"n +u,ust 11, 2004, P"T* 0+f$ica(Aildne$ /$oup1, !icto$ +f$ica, =ono$io Poblado$ III and Hat$ina Ponce )n$ile filed a *o.plaint fo$ in2unction 3ith p$aye$ fo$ TR" and
DPI in the RT* in Ma8ati *ity 0A$anch 1331 a,ainst #ieto, J$&, <uis <o8in, J$&, and +l.a H$istina "& +lobba see8in, to en2oin the latte$ f$o. actin, as i$ecto$s and
"ffice$s of P"T* 0*i%il *ase #o& 04(93>1&
"n +u,ust 2;, 2004, the RT* 0A$anch 1331 dis.issed *i%il *ase #o& 04(93> fo$ lac8 of 2u$isdiction o%e$ the sub2ect .atte$, e'plainin, its action thusly4
' ' ' '
+fte$ a pe$usal of the co.plaint and of the .e.o$anda filed, 3ith pa$ticula$ attention on the autho$ities cited, the *ou$t is of the opinion that it has no 2u$isdiction o%e$ the
case but the Sandi,anbayan&
>0
' ' ' '
The$eafte$, the +f$ica(Aildne$ /$oup filed a .otion fo$ $econside$ation&
)a$lie$, on +u,ust 15, 2004, P=* 0#ieto(P*// /$oup1 sub.itted to the S)* a final list of candidates fo$ Independent i$ecto$s of P=* fo$ the 2004(200> te$., to 3it4
Please be info$.ed that in connection 3ith the annual stoc8holde$sI .eetin, of P=I<*"MS+T ="<I#/S *"RP"R+TI"# 0P=*1 to be held on +u,ust 31, 2004, and in
co.pliance 3ith the "$de$ dated 5 July 2004 of the Secu$ities and )'chan,e *o..ission in S)* *ase #o& 12(03(03 entitled EIn the .atte$ of Philco.sat =oldin,s
*o$po$ation, Fo$4 *allin, of Meetin,,E the Aoa$d of i$ecto$s of P=*, at its .eetin, today constituted the #o.ination *o..ittee 3ith the follo3in, pe$sons as its
.e.be$s4
!otin, Me.be$s4
1& <uis H& <o8in, J$& 0$ep$esentati%e of the #ieto /$oup1
2& )n$i-ue <& <ocsin 0$ep$esentati%e of the P*//1
3& !acant 0to be desi,nated by the Secu$ities and )'chan,e *o..ission in default of the desi,nation of $ep$esentati%e by the +f$ica ,$oup1
#on(%otin, .e.be$4
1& Philip /& A$odett
The said #o.ination *o..ittee 3hich shall act upon the affi$.ati%e %ote of at least t3o 021 of its %otin, .e.be$s, shall ha%e the follo3in, po3e$s, duties and functions4
011 To p$e(sc$een and sho$tlist all candidates no.inated to beco.e .e.be$s of the boa$d of di$ecto$s in acco$dance 3ith the -ualifications and
dis-ualifications and the p$ocedu$es p$esc$ibed in the *o$po$ationIs Manual on *o$po$ate /o%e$nance and the Secu$ities Re,ulation *ode 0SR*1 and its
I.ple.entin, Rules and Re,ulations 0SR* Rules1:
021 To sub.it to the Secu$ities and )'chan,e *o..ission and the Philippine Stoc8 )'chan,e the Final <ist of candidates fo$ Independent i$ecto$s as
$e-ui$ed unde$ the S)* Rules:
031 To act as the co..ittee of inspecto$s 3ith po3e$s to pass upon the %alidity of p$o'ies, to can%ass and tally the %otes fo$ the election of di$ecto$s and to
ce$tify the 3innin, di$ecto$s based on the %otes ,a$ne$ed:
041 To do such acts o$ thin,s as .ay f$o. ti.e to ti.e be di$ected o$ dele,ated by the Aoa$d&
>1
"n +u,ust 20, 2004, the S)* issued an o$de$, pe$tinently statin,4
"n sepa$ate dates, the ,$oup of +tty& !icto$ +f$ica 0E+f$ica /$oup71 and the ,$oup of +.bassado$ #ieto 0E#ieto ,$oupE1 conducted thei$ $especti%e annual stoc8holde$s7
.eetin,s& The +f$ica ,$oup held successi%e .eetin,s fo$ P"T* and Philco.sat on July 25, 2004, 3hile the #ieto ,$oup held si.ila$ .eetin,s fo$ P"T* and Philco.sat
on +u,ust > and +u,ust 9, $especti%ely& "n all these .eetin,s, 3he$e the S)* $ep$esentati%e 3as p$esent 0e'cept the Philco.sat .eetin, of the +f$ica ,$oup1, the
*o..ission noted the follo3in, obse$%ations4
' ' ' '
In li,ht of the fo$e,oin,, the *o..ission he$eby upholds the %alidity of the stoc8holde$sI .eetin,s conducted by the #ieto /$oup in %ie3 of the clea$ co.pliance by the
said ,$oup 3ith the condition set fo$th by the *o..ission in its "$de$s of July 5 and 26, 2004&
Mean3hile, the P=* .eetin, shall p$oceed as scheduled on +u,ust 31, 2004& The "ffice$s and i$ecto$s of P=* a$e he$eby $e.inded to st$ictly confo$. to the
conditions stated in the July 5 and 26 "$de$s&
The P$esident and the *o$po$ate Sec$eta$y of P=* and its Stoc8 and T$ansfe$ +,ent a$e he$eby o$de$ed to sub.it to the *o..ission the ce$tified list of stoc8holde$s
and the stoc8 and t$ansfe$ boo8 of P=* on o$ befo$e +u,ust 2>, 2004&
ue to the failu$e of the +f$ica ,$oup to no.inate thei$ $ep$esentati%e to the P=* #"M)<)*, +tty& !icto$ia e <os Reyes is he$eby desi,nated as the $ep$esentati%e of
the +f$ica ,$oup in the fo$thco.in, +u,ust 31, 2004 P=* .eetin,&
The *o$po$ation Finance epa$t.ent is he$eby di$ected to .onito$ P=*Is co.pliance 3ith the la3s, $ules and $e,ulations $elati%e to the callin, of the stoc8holde$sI
.eetin, and to .a8e the necessa$y action to ensu$e such co.pliance&
The "$de$s of 5 July 2004 and 26 July 2004 insofa$ as not inconsistent 3ith this "$de$ shall $e.ain in full fo$ce and effect&
>2
"n +u,ust 23, 2004, the +f$ica /$oup co..enced *i%il *ase #o& 01(>>> in the RT* in Ma8ati *ity 0A$anch 611, p$ayin, fo$ the issuance of a TR" o$ DPI to Een2oin
Philco.sat =oldin,s *o$po$ation f$o. $eco,ni?in, defendants #ieto, J$& and <o8in as the $ep$esentati%es of P=I<*"MS+T,E and to p$e%ent #ieto, J$& and <o8in f$o.
actin, as i$ecto$s and "ffice$s fo$ and on behalf of P"T* and P=I<*"MS+T&
"n +u,ust 30, 2004, the RT* denied the .otion fo$ the issuance of TR" and DPI&
>3
"n +u,ust 26, 2004, the #o.ination *o..ittee 0#"M)<)*1 of P=* 0#ieto /$oup1 .et to conduct the %alidation of the p$o'ies and the e%aluation and p$e-ualification of
the no.inees fo$ election as Independent i$ecto$s& +fte$ a .a2o$ity %ote of its %otin, .e.be$s, the #"M)<)* $eco,ni?ed and %alidated the p$o'y sub.itted by <ocsin&
"n +u,ust 2;, 2004, the #ieto /$oup sub.itted to the S)* the final list of candidates fo$ Independent i$ecto$s of P=* fo$ the te$. 2004(200>& The list contained the
na.es of Aenito +$aneta and Robe$to +bad, both no.inated by A$odett& The list 3as sub.itted by #"M)<)* .e.be$s <o8in, J$&, <ocsin and A$odett&
"n the sa.e date, P"T* and P=I<*"MS+T 0+f$ica /$oup1, th$ou,h +tty& !icto$ +f$ica, filed in the *+ a petition fo$ ce$tio$a$i and p$ohibition 03ith p$aye$ fo$ TR" and
DPI1 see8in, to annul and set aside the o$de$s issued on July 5, 2004, July 26, 2004 and +u,ust 20, 2004 issued in S)* *ase #o& 12(03(03 0*&+&(/&R& SP #o&
5>9>91&
>4
"n +u,ust 31, 2004, the *+ p$o.ul,ated in *&+&(/&R& SP #o& 5>9>9 a $esolution ,$antin, a TR", pe$tinently statin,4
In the .eanti.e, since the petition -uestions the 2u$isdiction of public $espondents in issuin, the assailed "$de$s dated July 5, 2004, July 26, 2004 and +u,ust 20, 2004,
and the i.ple.entation of the sa.e 3ill $ende$ .oot and acade.ic any and all o$de$s, $esolutions and decisions of this *ou$t, this *ou$t he$eby T)MP"R+RI<C
R)STR+I#S $espondents, thei$ office$s, a,ents and othe$ pe$sons actin, fo$ and in thei$ behalf, f$o. enfo$cin,, i.ple.entin, and e'ecutin, the afo$esaid assailed
"$de$s 3ithin a pe$iod of si'ty 0601 days o$ until soone$ $e%o8ed&
>>
The *+ late$ ,$anted the application fo$ DPI, and en2oined the $espondents the$ein, thei$ a,ents, office$s, $ep$esentati%es and othe$ pe$sons actin, fo$ and in thei$ behalf
f$o. e'ecutin,, enfo$cin, and i.ple.entin, the assailed S)* o$de$s issued on July 5, 2004, July 26, 2004 and +u,ust 20, 2004 pendin, final $esolution of the petition,
o$ unless the DPI 3as soone$ lifted&
>6
+lso on +u,ust 31, 2004, the P=* 0#ieto /$oup1 conducted its annual stoc8holde$s7 .eetin,& The "ffice$s elected 3e$e <ocsin as i$ecto$ and +ctin, *hai$.an: "li%e$io
<ape$al as i$ecto$ and !ice *hai$.an: #ieto, J$& as i$ecto$, P$esident and *hief )'ecuti%e "ffice$: A$odett as i$ecto$ and !ice P$esident: Manuel & +ndal as i$ecto$,
T$easu$e$ and *hief Financial "ffice$: Robe$to San Jose as i$ecto$ and *o$po$ate Sec$eta$y: Julio Jalandoni, <o8in, J$&, P$udencio So.e$a, Robe$to +bad, and Aenito
+$aneta as i$ecto$s&
>;
"n Septe.be$ 10, 2004, P=I<*"MS+T 0+f$ica /$oup1, $ep$esented by !icto$ +f$ica, filed in the RT* in Ma8ati *ity 0A$anch 1351 a co.plaint a,ainst P=*, <o8in, J$&,
<ocsin and A$odett 0*i%il *ase #o& 04(10491 see8in, the follo3in, $eliefs, to 3it4
1& The p$oceedin,s of the #o.ination *o..ittee be in%alidated fo$ ha%in, been in %iolation of the Manual of *o$po$ate /o%e$nance of defendant P=*:
2& The act of the #o.ination *o..ittee in %alidatin, the p$o'y issued in fa%o$ of Manuel #ieto andBo$ defendant )n$i-ue <ocsin and in in%alidatin, the p$o'y
issued in fa%o$ of !icto$ +f$ica be annulled:
3& The elections held and the p$ocla.ation of 3inne$s du$in, the +nnual Stoc8holde$sI Meetin, of defendant P=* held on 31 +u,ust 2004 be annulled:
4& efendant P=* be di$ected to $eco,ni?e +tty& !icto$ +f$ica as the p$o'y of plaintiff and that he be allo3ed to %ote the sha$es standin, in the na.e of plaintiff
at subse-uent elections fo$ the .e.be$s of the boa$d of di$ecto$s of defendant P=*&
>5
"n "ctobe$ 21, 2004, P=I<*"MS+T 0#ieto /$oup1 and <o8in, J$& filed thei$ +ns3e$ 3ith /$ounds fo$ is.issal and *o.pulso$y *ounte$clai.s, a%e$$in,
the$ein, a.on, othe$s, as follo3s4
3;& The instant co.plaint .ust be ISMISS) fo$ lac8 of capacity andBo$ autho$ity of the alle,ed $ep$esentati%e, !icto$ !& +f$ica, to file the sa.e and sue the
defendants on behalf of Philco.sat&
35& Dhile the *o.plaint na.es Philco.sat as the plaintiff, alle,edly $ep$esented by !icto$ +f$ica, at no ti.e did LPMhilco.sat, th$ou,h its duly constituted Aoa$d
of i$ecto$s, autho$i?e hi. to file the sa.e&
39& !icto$ +f$ica bases his autho$ity upon the Sec$eta$y *e$tificate, alle,in, that the Philco.sat Aoa$d of i$ecto$s, du$in, its .eetin, held on 25 July 2004,
autho$i?ed hi. to file le,al actions on behalf of the co$po$ation&
40& It is $espectfully a%e$$ed, ho3e%e$, that Philco.sat, th$ou,h its duly constituted Aoa$d of i$ecto$s I #"T ="< any .eetin, on 25 July 2004, and I
#"T +FT="RIN) +f$ica to file any action o$ to do any act o$ deed on its behalf& The Sec$eta$yIs *e$tificate he $ep$esented is not si,ned by +tty& <uis H& <o8in,
J$&, the duly(elected *o$po$ate Sec$eta$y of Philco.sat&
' ' ' '
>0& The$e 3as no Philco.sat Aoa$d .eetin, held o$ autho$i?ed to be held on 25 July 2004& #eithe$ 3as the$e any autho$ity %ested upon !icto$ +f$ica to file this
nuisance suit, 3hich is only ai.ed at needlessly ha$assin, defendants and the othe$ la3ful stoc8holde$s of Philco.sat and P=* and the public at la$,e&
>1& Fo$ lac8 of any factual and le,al basis of the alle,ed autho$ity of the pe$son institutin, and %e$ifyin, the instant co.plaint, it .ust be decla$ed as a
#FIS+#*) SFIT and i..ediately ISMISS) by the =ono$able *ou$t, pu$suant to Section 1 0b1 of the Inte$i. Rules&
>2& Fu$the$.o$e, not only does +f$ica lac8 any autho$ity to file the instant action, the co.plaint itself is de%oid of any .e$ito$ious le,al basis&
>3& The $ele%ant facts a$e as follo3s4 In 2003, a stoc8holde$ of P=* filed a lette$(co.plaint 0late$ doc8eted as S)* *ase #o& 12(03(031 3ith the S)*, alle,in,
the non(holdin, of the annual stoc8holde$sI .eetin, since 2002& =ea$in,s 3e$e conducted 3he$ein the office$s and di$ecto$s of P"T* and Philco.sat 3e$e
$e-ui$ed to be p$esent and to file thei$ co..ents& !icto$ +f$ica acti%ely pa$ticipated in the p$oceedin,s befo$e the S)*, in his alle,ed capacity as office$ of
P"T*, Philco.sat and P=*&
>4& In %ie3 of the ,o%e$n.ent inte$est in P"T* 3hich is the sole beneficial o3ne$ of Philco.sat, 3hich in tu$n, is the 50@ stoc8holde$ of P=*, and the fact that
P"T* and Philco.sat a$e unde$ se-uest$ation, the P*// 3as li8e3ise di$ected to file thei$ co..ents on the .atte$s $aised by the pa$ties& P*//, th$ou,h
then *o..issione$ !icto$ia +%ena, asse$ted that the ,o%e$n.ent holds 40@ inte$est in P"T*& ' ' '&
>>& The$eafte$, the S)* issued the afo$estated "$de$ on 05 July 2004, di$ectin, the office$s of P"T* and Philco.sat to conduct thei$ $especti%e stoc8holde$sI
.eetin,s& Aefo$e the $endition of the 05 July 2004 "$de$, the +f$ica ,$oup did not conduct any stoc8holde$sI .eetin, of P"T* o$ Philco.sat, but they 3ould
late$ clai. that they had a,$eed, as ea$ly as 02 July 2004, to hold the .eetin,s on 05 July 2004& /i%en the ti.in, of the .eetin,, ho3e%e$, 3hich 3as held
afte$ the 05 July 2004 S)* "$de$, no c$edence could be ,i%en to such self(se$%in, clai.& The ti.in, and dates a$e .o$e than .e$e con%enient coincidences&
>6& +fte$ P"T* and Philco.sat duly held thei$ $especti%e stoc8holde$sI .eetin,s on 0> +u,ust 2004 and 09 +u,ust 2004, the S)* upheld the %alidity of thei$
.eetin,s in its "$de$ dated 20 +u,ust 2004&
>;& The$eafte$, +f$ica initiated a se$ies of actions in diffe$ent t$ibunals in an atte.pt to basically p$e%ent the P"T* and Philco.sat i$ecto$s and "ffice$s f$o.
actin, in thei$ capacity as such&
>9
"n #o%e.be$ 15, 2004, P*// e'p$essly adopted the +ns3e$ of P=I<*"MS+T 0#ieto /$oup1 as its o3n +ns3e$ in *i%il *ase #o& 04(1049&
60
"n ece.be$ ;, 2004, the RT* denied the +f$ica /$oup7s Motion fo$ Reconside$ation assailin, the o$de$ issued on +u,ust 2;, 2004 in *i%il *ase #o& 04(93>&
Dhe$eupon, P"T* 0+f$ica /$oup1 3ent to the *+ on ce$tio$a$i to annul and set aside the o$de$s issued on +u,ust 2;, 2004 and ece.be$ ;, 2004 in *i%il *ase #o& 04(
93> by the RT* 0A$anch 1331& The suit, doc8eted as *&+&(/&R& SP #"& 55664, 3as dis.issed by the *+ on July >, 200>, the decision pe$tinently statin,4
' ' ' De thus ha%e to add$ess one c$ucial issue4 Das the lo3e$ cou$t co$$ect in $ulin, that the Sandi,anbayan had 2u$isdiction o%e$ the instant caseO
It 3as&
It .ust be st$essed that the petitione$sI co.plaint essentially -uestions the le,ality by 3hich the p$i%ate $espondents a$e e'e$cisin, cont$ol o%e$ the assets and ope$ations
of a se-ueste$ed co$po$ation& They posit that the p$i%ate $espondents a$e usu$pe$s and ha%e no $i,ht to sit in the boa$d of di$ecto$s o$ act as co$po$ate office$s of the
P"T*& )%idently, these issues a$e Ea$isin, f$o., incidental to, o$ $elated toE the se-uest$ation case a,ainst P"T* 3hich, unde$ the la3, should be add$essed by the
Sandi,anbayan&
' ' ' '
+ll told, the lo3e$ cou$t did not co..it ,$a%e abuse of disc$etion a.ountin, to lac8 of o$ in e'cess of 2u$isdiction in dis.issin, the instant co.plaint fo$ lac8 of 2u$isdiction,
the sa.e bein, %ested in the Sandi,anbayan&
61
"n June 1>, 200>, this *ou$t $ende$ed its decision in /&R& #o& 141;96 and /&R& #o& 141504 by affi$.in, the %alidity of the co.p$o.ise a,$ee.ent dated June 25, 1996
bet3een the P*// and +tty& Iluso$io, holdin,4
Dith the i.p$i.atu$ of no less than the fo$.e$ P$esident Fidel !& Ra.os and the app$o%al of the Sandi,anbayan, the *o.p$o.ise +,$ee.ent .ust be acco$ded ut.ost
$espect& Such a.icable settle.ent is not only allo3ed but e%en encou$a,ed& ' ' '&
=a%in, been sealed 3ith cou$t app$o%al, the *o.p$o.ise +,$ee.ent has the fo$ce of $es 2udicata bet3een the pa$ties and should be co.plied 3ith in acco$dance 3ith its
te$.s& Pu$suant the$eto, !icto$ia *& de los Reyes, *o$po$ate Sec$eta$y of the P"T*, t$ans.itted to M$& Ma,dan,al A& )l.a, then *hief P$esidential <e,al *ounsel and
*hai$.an of P*//, Stoc8 *e$tificate #o& 131 dated Janua$y 10, 2000, issued in the na.e of the Republic of the Philippines, fo$ 4,;2; P"T* sha$es& Thus, the
*o.p$o.ise +,$ee.ent 3as pa$tly i.ple.ented&
62
"n July >, 200>, the +f$ica /$oup, citin, the decision in /&R& #o&141;96 and /&R& #o& 141504, filed a Manifestation 3ith )'(Pa$te Motion to Resol%e in *i%il *ase #o& 04(
1049&
63
+lso on July >, 200>, the *+ p$o.ul,ated its decision in *&+&(/&R& SP #o& 55664, dis.issin, the petition fo$ ce$tio$a$i 0b$ou,ht to assail the dis.issal by the RT* 0A$anch
1331 of the co.plaint in *i%il *ase #o& 04(93>1&
64
"n +u,ust 15, 200>, P=I<*"MS+T 0#ieto /$oup1, th$ou,h <ocsin, sub.itted a *ounte$(Manifestation, contendin, that the decision in /&R& #o& 141;96 and /&R& #o&
141504 did not ope$ate to auto.atically nullify the p$oceedin,s du$in, the stoc8holde$s7 .eetin, of P=* on +u,ust 31, 2004&
6>
"n +u,ust 19, 200>, the RT* 0A$anch 1351, app$ised of the pendency of .otions fo$ $econside$ation in /&R& #o& 141;96 and /&R& #o& 141504, held in abeyance its
action upon the pa$ties7 $especti%e .anifestations until afte$ the $esolution of the pendin, .otions fo$ $econside$ation&
66
"n Septe.be$ ;, 200>, the *ou$t denied the .otions fo$ $econside$ation in /&R& #o& 141;96 and /&R& #o& 141504, statin,4
"b%iously, petitione$s7 .otions fo$ $econside$ation a$e de%oid of .e$it& The .atte$s they $aise a$e .e$e $eite$ations of the p$e%ious a$,u.ents in thei$ petitions al$eady
conside$ed and e'hausti%ely passed upon in ou$ July 2;, 200> 0sic1 ecision& Indeed, 3e find no co,ent $eason to de%iate f$o. ou$ ecision&
+s $e,a$ds the second incident, $espondent Aildne$ see8s a cla$ification on the effect of the TR", issued by this *ou$t on Ma$ch 29, 2000, $est$ainin, the i.ple.entation
of the challen,ed Sandi,anbayan Resolution dated ece.be$ 20, 1999 in *i%il *ase #o& 0009&
It .ay be $ecalled that in ou$ June 1>, 200> ecision, 3e dis.issed these consolidated petitions assailin, the Sandi,anbayan Resolution of ece.be$ 20, 1999& This
Resolution 011 denied petitione$sI sepa$ate .otions to %acate the Sandi,anbayan "$de$ dated June 5, 1995 app$o%in, the *o.p$o.ise +,$ee.ent: 021 decla$ed the
>,400 P"T* sha$es $e,iste$ed in the na.es of petitione$s IR* and M<* null and %oid as they cate,o$ically ad.itted that such sha$es a$e ill(,otten 3ealth of deposed
P$esident Ma$cos and his Fa.ily, and that the sa.e 3e$e su$$ende$ed to the /o%e$n.ent 3hich no3 o3ns the sa.e: and 031 o$de$ed the *o$po$ate Sec$eta$y of P"T*,
3ithin 10 days f$o. $eceipt of the Resolution, to issue 4,;2; P"T* sha$es in the na.e of the Republic, and 6;3 P"T* sha$es in the na.e of Potenciano Iluso$io,
pu$suant to the app$o%ed *o.p$o.ise +,$ee.ent& In co.pliance 3ith the Sandi,anbayan Resolution, +tty& !icto$ia *& de los Reyes, *o$po$ate Sec$eta$y of the P"T*,
on Janua$y 10, 2000, t$ans.itted to M$& Justice Ma,dan,al A& )l.a, then *hief P$esidential <e,al *ounsel and *hai$.an of Philippine *o..ission on /ood
/o%e$n.ent 0P*//1, Stoc8 *e$tificate #o& 131 0of e%en date1 issued in the na.e of the Republic of the Philippines, fo$ 4,;2; P"T* sha$es& Thus, the *o.p$o.ise
+,$ee.ent 3as pa$tly i.ple.ented&
In he$ p$esent .otion fo$ cla$ification, $espondent Aildne$ alle,es inte$ alia that, on Ma$ch 29, 2000 o$ .o$e than t3o 021 .onths afte$ the *o.p$o.ise +,$ee.ent had
been i.ple.ented on Janua$y 10, 2000, this *ou$t issued a TR" $est$ainin, its i.ple.entation&
The$e is no need fo$ us to .a8e a cla$ification bein, sou,ht by $espondent Aildne$ in he$ .otion& Suffice it to say that 3hen the TR" 3as issued on Ma$ch 29, 2000, the
Sandi,anbayan Resolution of ece.be$ 20, 1999 di$ectin, the issuance of P"T* sha$es in the na.es of the Republic and Potenciano Iluso$io in acco$dance 3ith the
*o.p$o.ise +,$ee.ent had been pa$tially i.ple.ented on Janua$y 10, 2000 o$ .o$e than t3o 021 .onths ea$lie$ by P"T* *o$po$ate Sec$eta$y !icto$ia *& de los
Reyes& She al$eady t$ans.itted to then P*// *hai$.an Ma,dan,al A& )l.a Stoc8 *e$tificate #o& 131 issued in the na.e of the Republic of the Philippines, fo$ 4,;2;
P"T* sha$es& This 3as ne%e$ .entioned by petitione$s in thei$ petitions& In fact, e%en befo$e the petitions in these cases 3e$e filed, the i.ple.entation of the
*o.p$o.ise Jud,.ent had been pa$tially effected& De 3e$e thus .isled in issuin, the TR"& In any case, the TR" has beco.e .oot and acade.ic, the sa.e ha%in, no
.o$e le,al fo$ce as the act sou,ht to be $est$ained had been pa$tially i.ple.ented and conside$in, ou$ ecision in this case&
D=)R)F"R), petitione$s7 instant .otions fo$ $econside$ation a$e )#I) 3ith FI#+<ITC& "n $espondent Aildne$Is .otion fo$ cla$ification, the sa.e is conside$ed .oot
and acade.ic&
6;
In the .eanti.e, the RT* 0A$anch 1351 $e-ui$ed the pa$ties to sub.it thei$ $especti%e .e.o$anda in *i%il *ase #o& 04(1049& Aoth pa$ties co.plied&
65
"n Septe.be$ 14, 200>, the +f$ica /$oup b$ou,ht a special ci%il action fo$ ce$tio$a$i and p$ohibition in this *ou$t assailin, the decision p$o.ul,ated on July >, 200> in
*&+&(/&R& SP #o& 55664 0/&R& #o& 1;1;991&
69
"n Septe.be$ 22, 200>, P"T* and P=I<*"MS+T 0+f$ica(Iluso$io /$oup1 elected a ne3 set of i$ecto$s and "ffice$s& Ma& )$linda I& Aildne$ 3as elected as the *hai$.an
of the Aoa$ds of i$ecto$s of both P"T* and P=I<*"MS+T&
;0
"n Septe.be$ 26, 200>, P"T* and P=I<*"MS+T 0#ieto /$oup1 initiated a *o.plaint fo$ in2unction and da.a,es 3ith p$aye$ fo$ TR" and DPI in the Sandi,anbayan
0SA *i%il *ase #o& 01951&
;1
The Sandi,anbayan issued a TR" in SA *i%il *ase #o& 0195, en2oinin, the +f$ica(Iluso$io /$oup f$o. actin, as "ffice$s and i$ecto$s of P"T* and P=I<*"MS+T&
;2
"n June >, 2006, the *ou$t dis.issed /&R& #o& 1;1;99, %i?4
*onside$in, the alle,ations, issues and a$,u.ents adduced in the petition fo$ ce$tio$a$i and p$ohibition 3ith p$aye$ fo$ 3$it of p$eli.ina$y in2unction andBo$ te.po$a$y
$est$ainin, o$de$ dated 14 Septe.be$ 200>, the *ou$t Resol%es to ISMISS the petition fo$ failu$e to sufficiently sho3 that the -uestioned 2ud,.ent of the *ou$t of
+ppeals is tainted 3ith ,$a%e abuse of disc$etion&
;3
"n "ctobe$ 14, 2006, the RT* 0A$anch 1351 $ende$ed its decision in *i%il *ase #o& 04(1049, thus4
In the case at ba$, the #ieto /$oup did not specifically deny plaintiffIs alle,ation that thei$ %otes du$in, the 2004 annual stoc8holde$sI .eetin, fo$ P"T* and Philco.sat
.ainly $elied on the IR* and Mid(Pasi, sha$es& Fpon the p$o.ul,ation of the abo%e(cited Sup$e.e *ou$t ecision dated 1> June 200>, e%en as ea$ly as 1956, both IR*
and Mid(Pasi, co$po$ations ha%e no .o$e $i,ht o$ inte$est o%e$ the sub2ect P"T* sha$es 3hich 3as al$eady su$$ende$ed by Jose C& *a.pos to the /o%e$n.ent& Mid(
Pasi, and IR* the.sel%es 3e$e se-ueste$ed, and then %olunta$ily su$$ende$ed as pa$t of the $es co%e$ed by the *a.pos *o.p$o.ise +,$ee.ent& Insofa$ as Mid(Pasi,
and IR* a$e conce$ned, they ha%e al$eady $elin-uished all $i,hts o$ inte$est o%e$ all P"T* sha$es $e,iste$ed in thei$ na.es in fa%o$ of the Republic $ep$esented by
P*//, e%en as ea$ly as 1956& =ence, the Sup$e.e *ou$t ecision, in effect, in%alidates the elections held by the #ieto /$oup in the annual stoc8holde$sI .eetin, of
P"T* and Philco.sat on > +u,ust 2004 and 9 +u,ust 2004, fo$ not ha%in, the .a2o$ity cont$ol of the said co$po$ation& In tu$n, the defendant #ieto /$oup could not
ha%e, the$efo$e, issued a %alid p$o'y no$ could they ha%e appointed defendant <ocsin as Philco.sat7s $ep$esentati%e to the P=* annual stoc8holde$s7 .eetin,&
D=)R)F"R), 2ud,.ent is he$eby $ende$ed in%alidatin, the p$o'y issued in fa%o$ Manuel #ieto andBo$ defendant <ocsin fo$ pu$poses of the +nnual Stoc8holde$sI
Meetin, fo$ the yea$ 2004 and decla$in, the p$o'y issued in fa%o$ of !icto$ !& +f$ica fo$ the said pu$pose, %alid& *o$olla$ily, the elections held and the p$ocla.ation of
3inne$s du$in, the annual stoc8holde$sI .eetin, of defendant P=* held on 31 +u,ust 2004 is he$eby annulled&
;4
"n "ctobe$ 23, 2006, the RT* 0A$anch 1351 dis.issed *i%il *ase #o& 01(540 fo$ lac8 of 2u$isdiction& Subse-uently, the RT* 0A$anch 1351 denied the petitione$s7 Motion
fo$ Reconside$ation, and t$eated it instead as a notice of appeal&
;>
"n Ma$ch 1, 200;, P=* 0#ieto /$oup1 and A$odett appealed the decision dated "ctobe$ 14, 2006 $ende$ed in *i%il *ase #o& 04(1049 to the *+ %ia a petition fo$ $e%ie3
0*+(/&R& SP #"& 9509;1& "n Ma$ch 2;, 200;, the +f$ica(Iluso$io /$oups sub.itted thei$ co..ent 03ith opposition to the application fo$ TR" and DPI1&
;6
"n Ma$ch 21, 200;, P"T* and P=I<*"MS+T 0#ieto /$oup1 b$ou,ht to the *+ a petition fo$ ce$tio$a$i 03ith p$aye$ fo$ TR" and DPI1, si.ila$ly assailin, the decision
$ende$ed on "ctobe$ 14, 2006 in *i%il *ase #o& 04(1049 0*&+&(/&R& SP #o& 953991&
;;
"n Ma$ch 2;, 200;, P=I<*"MS+T 0+f$ica /$oup1 sou,ht the e'ecution of the decision $ende$ed on "ctobe$ 14, 2006 in *i%il *ase #o& 04(1049 by the RT* 0A$anch
1351& +lthou,h on +p$il 4, 200;, P=* 0#ieto /$oup1, <ocsin and A$odett opposed the .otion fo$ e'ecution, the RT* 0A$anch 1351 ,$anted the .otion on +p$il 12, 200;, to
3it4
D=)R)F"R), p$e.ises conside$ed, the *ou$t he$eby ,$ants the plaintiffIs Motion& <et a 3$it of e'ecution be issued di$ectin, the i.ple.entation of the follo3in, o$de$s4
11 the indi%iduals elected by defendant <ocsin in the 2004 P=* +SM, and so p$oclai.ed to be P=*7s boa$d of di$ecto$s, na.ely4 )n$i-ue <ocsin, Julio
Jalandoni, Manuel +ndal, <uis <o8in, J$&, P$udencio So.e$a, J$&, Manuel =& #ieto, J$&, Robe$to !& San Jose, Philip A$odett, "li%e$io <ape$al, Aenito +$aneta
and Robe$to +bad and all thei$ $ep$esentati%es o$ a,ents a$e en2oined f$o. continuin, to act as P=* boa$d of di$ecto$s:
21 the p$o'y of plaintiff issued to !icto$ !& +f$ica is decla$ed %alid and thus, the indi%iduals elected by plaintiffIs p$o'y in the 2004 P=* +SM na.ely4 !icto$ !&
+f$ica, )$linda I& Aildne$, Hat$ina Ponce )n$ile, =ono$io Poblado$ III, Fede$ico +,caoili, Syl%ia H& Iluso$io and Jose Ma& "?a.i? a$e decla$ed as the %alid boa$d
of di$ecto$s of P=*: and
31 the defendants a$e di$ected to $ende$ an accountin, of funds of P=* since 2004 up to the p$esent 3ithin 1> days f$o. the finality of this "$de$&
;5
"n +p$il 15, 200;, P=* 0#ieto /$oup1 and A$odett filed thei$ Reply 3ith Reite$ation of the F$,ent +pplication fo$ Te.po$a$y Rest$ainin, "$de$ and P$eli.ina$y In2unction
in *&+&(/&R& SP #"& 9509;& "n +p$il 20, 200;, they filed a Supple.ental Petition 3ith F$,ent +pplication fo$ Te.po$a$y Rest$ainin, "$de$ and P$eli.ina$y In2unction,
alle,in, that, upon .otion of $espondent 0+f$ica /$oup1, the RT* had issued an o$de$ dated +p$il 12, 200; di$ectin, the issuance of a 3$it of e'ecution to i.ple.ent the
decision dated "ctobe$ 14, 2006&
;9
"n +p$il 15, 200;, the RT* 0A$anch 1351 issued a 3$it of e'ecution of the decision dated "ctobe$ 14, 2006&
50
"n +p$il 24, 200;, the P=* 0+f$ica /$oup1 held an o$,ani?ational .eetin, of its Aoa$d of i$ecto$s pu$suant to the decision dated "ctobe$ 14, 2006 as 3ell as the o$de$
dated +p$il 12, 200; and the 3$it of e'ecution dated +p$il 20, 200;, all issued in *i%il *ase #o& 04(1049& +t that o$,ani?ational .eetin,, !icto$ !& +f$ica, Fede$ico R&
+,caoili, )$linda I& Aildne$, Hat$ina *& Ponce )n$ile, Syl%ia H& Iluso$io, =ono$io Poblado$ III, Jose "?a.i?, P$udencio So.e$a, Pablo <ob$e,at and "li%e$io <ape$al 3e$e
elected as i$ecto$s& "n the sa.e occasion, the follo3in, 3e$e elected as "ffice$s of P=*, na.ely4 =ono$io Poblado$ III as *hai$.an: "li%e$io <ape$al as !ice(
*hai$.an: )$linda I& Aildne$ as P$esident: <o$na P& Hapunan as !ice P$esident: Pablo <ob$e,at as !ice(P$esident: Hat$ina Ponce )n$ile as T$easu$e$: Rafael Poblado$ as
+ssistant T$easu$e$: John Aenedict Sioson as *o$po$ate Sec$eta$y: and ennis R& Man?anal as +ssistant *o$po$ate Sec$eta$y&
51
"n +p$il 30, 200;, P=I<*"MS+T 0+f$ica /$oup1 filed an F$,ent Motion to <ift the TR" in *&+&(/&R& SP #o& 95399&
52
"n May 2, 200;, P=* 0#ieto /$oup1 p$esented a Manifestation in *&+&(/&R& SP #"& 9509;, alle,in, that they 3e$e info$.ed that P"T* and P=I<*"MS+T had filed a
petition dated Ma$ch 14, 200; in this *ou$t 3hich in%ol%ed substantially the sa.e issues $aised in *&+&(/&R& SP #o& 9509;&
53
"n May 10, 200;, the *+ di$ected P"T* and P=I<*"MS+T 0#ieto /$oup1 to co..ent on the F$,ent Motion to <ift the TR" filed in *&+&(/&R& SP #"& 95399&
54
"n May 1;, 200;, the *+ issued a $esolution in *&+&(/&R& SP #o& 9509;, to 3it4
D=)R)F"R), petitione$s7 application fo$ a te.po$a$y $est$ainin, o$de$B3$it of p$eli.ina$y in2unction to en2oin the e'ecution of the ecision dated "ctobe$ 14, 2006 of the
cou$t a -uo in *i%il *ase #o& 04(1049 is .e$ely #"T) as the sa.e has been $ende$ed .oot and acade.ic&
The issues ha%in, been 2oined 3ith the filin, of the co..ent and $eply, the petition fo$ $e%ie3 is conside$ed sub.itted fo$ decision&
5>
"n June 5, 200;, the *+ dis.issed the petition in *&+&(/&R& *! #"& 55360 fo$ bein, an i.p$ope$ .ode of appeal&
56
"n June 12, 200;, P"T* and P=I<*"MS+T 0#ieto /$oup1 filed thei$ Reply 3ith F$,ent Motion to Resol%e the +pplication fo$ P$eli.ina$y In2unction in *+(/&R& SP #o&
95399& The *+ ,$anted the F$,ent Motion to Resol%e on June 2>, 200;, and issued the DPI on the sa.e date&
5;
"n +u,ust 1;, 200;, P"T* and P=I<*"MS+T 0+f$ica(Iluso$io /$oup1 b$ou,ht a petition fo$ ce$tio$a$i to annul and set aside the *+7s $esolution dated June 2>, 200; in
*&+&(/&R& SP #o& 95399&
55
)a$lie$, on +u,ust 1>, 200;, the Sandi,anbayan issued its $esolution dis.issin, the *o.plaint of P"T* and P=I<*"MS+T 0#ieto /$oup1 in SA *i%il *ase #o& 0195, to
3it4
D=)R)F"R), in %ie3 of the fo$e,oin,, the *ou$t he$eby $esol%es as follo3s4
11 The F$,ent Motion to is.iss dated Septe.be$ 29, 200> of the defendant is he$eby /R+#T)& +cco$din,ly, the plaintiffsI *o.plaint dated Septe.be$ 20,
200> is he$eby o$de$ed ISMISS)&
21 The follo3in, .otions and pleadin,s a$e conside$ed M""T +# +*+)MI* in %ie3 of the dis.issal of the case&
a& Motion to *onside$ and ecla$e efendants in efault dated "ctobe$ 21, 200> of the plaintiffs:
b& Motion fo$ *onsolidation 3ith SA *i%il *ase #o& 0009 dated Septe.be$ 24, 2006 of the plaintiffs:
c& Petition to Sho3 *ause dated +p$il 2>, 200; filed by the plaintiffs: and
d& Motion fo$ <ea%e to Inte$%ene and to +d.it *o.plaint(In(Inte$%ention dated May 16, 200; filed by the P*//&
31 The *ou$t he$eby R)PRIM+#S )n$i-ue <& <ocsin and +tty& Si8ini *& <abastilla fo$ o.ittin, .ate$ial facts in thei$ *o.plaint and F$,ent Motion fo$ Special
Raffle and D+R#S that a $epetition of the sa.e o$ si.ila$ acts in the futu$e shall be dealt 3ith .o$e se%e$ely&
59
P"T* and P=I<*"MS+T 0#ieto /$oup1 .o%ed fo$ $econside$ation on Septe.be$ >, 200;, and late$ supple.ented the .otion&
90
"n #o%e.be$ >, 200;, +tty& Si8ini *& <abastilla filed in the *+ a petition to cite )$linda I& Aildne$ and he$ la3ye$ +tty& ennis R& Man?anal fo$ indi$ect conte.pt of cou$t
0*&+&(/&R& SP #o& 10122>1, and p$ayed that the petition be consolidated 3ith *&+&(/&R& SP #o& 95399& The consolidation 3as allo3ed on ece.be$ 12, 200;&
91
"n #o%e.be$ 13, 200;, P$esident +$$oyo na.ed ne3 no.inees to the P"T* Aoa$d of i$ecto$s, na.ely4 aniel *& /utie$$e?, +llan S& MontaGo, and Reti$ed Justice
Santia,o J& Ranada: and to the P=I<*"MS+T Aoa$d of i$ecto$s, na.ely4 Ra.on P& Jacinto, +b$aha. R& +besa.is, and Rodolfo /& Se$$ano, J$&
92
"n #o%e.be$ 19, 200;, P"T* held its +nnual Stoc8holde$s7 Meetin, and "$,ani?ational Meetin, of the Aoa$d of i$ecto$s& )lected 3e$e aniel *& /utie$$e? as i$ecto$
and *hai$.an: )$linda I& Aildne$ as i$ecto$ and !ice *hai$.an: Hat$ina Ponce )n$ile as i$ecto$ and P$esidentB*)":
Ma$ietta H& Iluso$io as i$ecto$ and T$easu$e$: F$ancisca Aenedicto Paulino, Pablo <& <ob$e,at, +llan MontaGo, =ona$io +& Poblado$ III and Justice Ranada as i$ecto$s:
Rafael +& Poblado$ as +ssistant T$easu$e$: and !icto$ia *& de los Reyes as *o$po$ate Sec$eta$y&
93
"n the sa.e date, P=I<*"MS+T held its +nnual Stoc8holde$s7 Meetin, and "$,ani?ational Meetin, of the Aoa$d of i$ecto$s& )lected 3e$e4 +b$aha. R& +besa.is as
i$ecto$ and *hai$.an: Pablo <& <ob$e,at as i$ecto$ and !ice(*hai$.an: Ra.on Jacinto as i$ecto$ and *hai$.an of the )'ecuti%e *o..ittee: )$linda I& Aildne$ as
i$ecto$ and P$esidentB*)": Ma$ietta H& Iluso$io as i$ecto$ and !ice P$esident: Hat$ina Ponce )n$ile as i$ecto$ and T$easu$e$: <o$na P& Hapunan, =ono$io +& Poblado$
III and Rodolfo /& Se$$ano, J$& as i$ecto$s: Rafael +& Poblado$ as +ssistant T$easu$e$: and John Aenedict <& Sioson as *o$po$ate Sec$eta$y&
94
The$eafte$, *oncepcion +& Poblado$ of the #ieto /$oup filed a *o.plaint fo$ in2unction and decla$ation of nullity 03ith p$aye$ fo$ TR" and DPI1 3ith the Sandi,anbayan,
see8in, to en2oin the P*// f$o. $eco,ni?in, the stoc8holde$s7 .eetin, held on #o%e.be$ 19, 200; 0*i%il *ase #o& 0;(00011&
Mean3hile, P=* 0+f$ica /$oup1, th$ou,h )$linda I& Aildne$, filed a *o.plaint fo$ in2unction a,ainst the Aan8 of the Philippine Islands 0API1 3ith the RT* 0A$anch 621 in
Ma8ati *ity, see8in, to en2oin API f$o. allo3in, fu$the$ disbu$se.ents of P=* funds to unautho$i?ed pe$sons co.p$isin, those 3ho 3e$e no lon,e$ .e.be$s of the P=*
Aoa$d of i$ecto$s due to the nullification of thei$ election&
"n the basis of the *o.plaint, the RT* 0A$anch 621 issued an o$de$ on ece.be$ 13, 200;, as follo3s4
F"R)/"I#/ *"#SI)R), pendin, final ad2udication on the p$incipal action $aised he$ein and sub2ect to the postin, of the inde.nity bond in the su. of Th$ee Million
Pesos 0Php 3,000,000&001 issued in fa%o$ of the defendant Aan8 of the Philippine Islands and defendant inte$%ene$ P=* $ep$esented by )n$i-ue M& <ocsin, let a 3$it of
p$eli.ina$y in2unction issue, en2oinin, the said defendant ban8, its e.ployees, office$s, and $ep$esentati%es f$o. allo3in, the defendant inte$%ene$, <ocsin /$oup, thei$
office$s, e.ployees, a,ents, andBo$ $ep$esentati%es to in-ui$e, 3ithd$a3, andBo$ in any .anne$ t$ansact $elati%e to any and all Philco.sat =oldin,s *o$po$ation accounts
.aintained 3ith Aan8 of the Philippine Islands until fu$the$ o$de$s f$o. this *ou$t&
Finally, the defendant ban8 is he$eby o$de$ed to sub.it to this *ou$t the latest 0as of $eceipt of this "$de$1 ban8 state.ents andBo$ ce$tificates of all P=* accounts
deposited 3ith its ban8 3ithin ten 0101 days f$o. notice the$eof&
9>
"n ece.be$ 14, 200;, P"T* and P=I<*"MS+T 0+f$ica /$oup1 filed in *&+&(/&R& SP #"& 95399 a Manifestation and F$,ent Motion to Dithd$a3 Petition, p$ayin, that
the petition be conside$ed 3ithd$a3n, and that the DPI issued on June 2>, 200; be i..ediately lifted& In suppo$t of the .otion, P"T* and P=I<*"MS+T 0+f$ica /$oup1
a%e$$ed4
011 "n 21 Ma$ch 200;, M$& )n$i-ue <ocsin 0<ocsin1 pu$po$tedly $ep$esentin, P"T* and P=I<*"MS+T filed the instant petition, assailin, the decision issued by
the Re,ional T$ial *ou$t 0RT*1 of Ma8ati A$anch 135 in *i%il *ase #o& 04(1049 ' ' '&
' ' ' '
031 Dhat M$& <ocsin has delibe$ately failed andBo$ $efused to di%ul,e to this =ono$able *ou$t upon filin, the instant petition a$e the follo3in, facts4 011 M$& <ocsin
and his ,$oup a$e e'actly the sa.e set of indi%iduals 3ho co.p$ise the $espondents in *i%il *ase #o& 04(1049, the decision 3hich is no3 he$ein assailed: and
that 021 M$& <ocsin and his ,$oup, pu$po$tedly, $ep$esentin, ea$lie$ o$ t3o 3ee8s p$io$ to the filin, of the instant petition, al$eady filed an appeal also 3ith this
=ono$able *ou$t, albeit pendin, in a diffe$ent di%ision, doc8eted as *+(/&R& SP #o& 9509;, $aisin, e'actly the sa.e issues and see8in, identical $eliefs as they
a$e no3 pendin, in the case at ba$&
' ' ' '
0>1 The difficulty in $esol%in, the p$esent cont$o%e$sy lod,ed befo$e this =ono$able *ou$t ste.s f$o. the fact that e%en the le,iti.ate P"T* and P=I<*"MS+T
$ep$esentati%es beco.e appa$ently undete$.inable&
' ' ' '
091 #onetheless, the conflictin, clai.s o%e$ P"T* and P=I<*"MS+T ha%e finally co.e to $esolution 3ith the $ecent de%elop.ents&
0101 "n 13 #o%e.be$ 200;, the ,o%e$n.ent appointed its ne3 no.inees to P"T* and P=I<*"MS+T& Fo$ P"T*, the ,o%e$n.ent, th$ou,h Fnde$sec$eta$y
)n$i-ue & Pe$e? 3ith the di$ecti%e of P$esident /lo$ia Macapa,al +$$oyo, appointed +tty& aniel *& /utie$$e?, +tty& +llan S& MontaGo and Justice Santia,o J&
Ranada 0Ret&1 to the P"T* boa$d and $ep$esent the ,o%e$n.entIs 34&9@ sha$eholdin,s in the boa$d of di$ecto$s of P"T*& In the sa.e .anne$ and fo$ an a8in
pu$pose, the ,o%e$n.ent appointed M$& Ra.on P& Jacinto, M$& Rodolfo /& Se$$ano, J$& and Rad.& +b$aha. R& +besa.is 0Ret&1 to $ep$esent the ,o%e$n.entIs
34&9@ sha$eholdin,s on the boa$d of di$ecto$s of P=I<*"MS+T& +lthou,h this =ono$able *ou$t .ay ta8e 2udicial notice of these appoint.ents, to e%idence
such ne3 appoint.ents, copies of the p$o'y issued by the Republic of the Philippines to Fnde$sec$eta$y Pe$e? and the EI desi$eE lette$ of the "ffice of the
P$esident fo$ the ,o%e$n.entIs no.inees to P=I<*"MS+T, both dated 13 #o%e.be$ 200;, and the list of no.inees of Fnde$sec$eta$y Pe$e? fo$ P"T* and his
lette$ to P*// *hai$.an *a.ilo Sabio, both dated 19 #o%e.be$ 200;, a$e attached and .ade inte,$al pa$ts he$eof as +nne'es EAE, EAE, E*E and EE,
$especti%ely&
0111 #eedless to state, 3ith the desi,nation and thei$ selection of the ne3 ,o%e$n.ent no.inees to P"T* and P=I<*"MS+T, the old no.inees, na.ely4 M$&
<ocsin, M$& Manuel +ndal, M$& Julio Jalandoni and M$& /uy de <eon a$e auto.atically $eplaced& This is an undeniable fact and had al3ays been the p$ocedu$e
in the appoint.ent and $eplace.ent of ,o%e$n.ent no.inees to the boa$d of co.panies 3he$e the ,o%e$n.ent has a substantial inte$est&
0121 Follo3in, the said appoint.ent of ne3 no.inees, necessa$ily, annual stoc8holde$s .eetin,s of both P"T* and P=I<*"MS+T 3e$e conducted and held
on 19 #o%e.be$ 200; in o$de$ to elect the ne3 di$ecto$s of the $especti%e boa$ds of the t3o co.panies& u$in, the said .eetin,s, 3he$e o%e$ 90@ of the
sha$eholde$s 3e$e p$esent andBo$ duly $ep$esented, the stoc8holde$s elected the ne3 boa$d of di$ecto$s of P"T* and P=I<*"MS+T& These elections a$e
e%idenced by the Sec$eta$yIs *e$tificates duly e'ecuted by the *o$po$ate Sec$eta$ies of P"T* and P=I<*"MS+T, copies of 3hich a$e attached and .ade
inte,$al pa$ts he$eof as +nne'es E)E and EFE, $especti%ely&
0131 Thus, the ne3 ,o%e$n.ent no.inees, to,ethe$ 3ith the p$i%ate sha$eholde$s of P"T* and Philco.sat a$e 2oined to,ethe$ in a unified boa$d of di$ecto$s fo$
the t3o co.panies& In fact, afte$ the ne3 sets of di$ecto$s had been elected, both co.panies conducted thei$ $especti%e o$,ani?ational and boa$d .eetin,s&
0141 +t the boa$d .eetin,s of P"T* and Philco.sat held on 4 ece.be$ 200;, P"T* and P=I<*"MS+T ha%e decided, as the ne3, unassailably le,iti.ate
and only boa$d of di$ecto$s of P"T* and P=I<*"MS+T, to autho$i?e the 3ithd$a3al of the instant petition filed in the na.e of P"T* and P=I<*"MS+T& The
boa$ds li8e3ise in thei$ $esolutions, disallo3ed othe$ pe$sons to $ep$esent thei$ co.panies& *opies of these $esolutions issued by P"T* and P=I<*"MS+T a$e
attached and .ade inte,$al pa$ts he$eof as +nne'es E/E and E=E, $especti%ely&
01>1 Thus, based on the fo$e,oin,, P"T* and P=I<*"MS+T, 3ho a$e supposedly the petitione$s in this case, .o%e fo$ the i..ediate 3ithd$a3al of the
petition dated 14 Ma$ch 200; and the i..ediate liftin, of the D$it of P$eli.ina$y In2unction dated 2> June 200;&
96
The F$,ent Motion to Dithd$a3 Petition 3as opposed in a *o..ent and "pposition filed on Feb$ua$y 13, 2005 that a%e$$ed as follo3s4
' ' ' '
4& Th$ou,h the .alicious .otion to 3ithd$a3, the$e is a %eiled atte.pt, to ha%e this =ono$able *ou$t uphold and $eco,ni?e the %alidity of the supposed
.eetin,s held by $u.p boa$ds on #o%e.be$ 19, 200;&This is a .atte$ that is p$ope$ly co,ni?able only by the Sandi,anbayan&
>& In fact, the$e is al$eady a pendin, co.plaint befo$e the Sandi,anbayan that assails the supposed #o%e.be$ 19, 200; .eetin,s stated in the .otion to
3ithd$a3&
6& The Sandi,anbayan, actin, th$ou,h the Fifth i%ision, ,$anted the issuance of a Te.po$a$y Rest$ainin, "$de$ on ece.be$ 21, 200;, to p$e%ent and
p$ohibit any $eco,nition of these #o%e.be$ 19, 200; .eetin,s& ' ' '&
12& Petitione$s, ho3e%e$, a$e co.pelled to add$ess the .isleadin, alle,ations and conclusions in the .otion to 3ithd$a3& It is $espectfully .anifested that these
alle,ed #o%e.be$ 19, 200; .eetin,s 3e$e not called by the le,iti.ate boa$ds of petitione$s P"T* and Philco.sat& "nly the le,iti.ate boa$ds, he$e
$ep$esented by M$& <ocsin, can p$ope$ly act upon any chan,e in the ,o%e$n.ent no.inees, and it is only the le,iti.ate boa$ds that can install the.& +s
.anifested by petitione$s to this =ono$able *ou$t, since the$e a$e no .o$e le,al challen,es to the $especti%e Aoa$ds of i$ecto$s of petitione$s o$i,inally led by
Ronaldo Salon,a and Manuel #ieto, J$&, since 1995, only the successo$s of these boa$ds, he$e $ep$esented by M$& <ocsin, can p$ope$ly $ep$esent petitione$s
P"T* and P=I<*"MS+T&
12&1& The issue 3as settled 3ith the dis.issal of the appeal in *+ /&R& *! #o& 55360, 3hich ste..ed f$o. the o$i,inal petition filed in 1995 by
Potenciano Iluso$io, Hat$ina Ponce()n$ile, and thei$ fa.ily o3ned co$po$ations, to -uestion the election of the #ieto(Salon,a boa$d& The appeal 3as
dis.issed by the =ono$able *ou$t of +ppeals in its Resolution dated June 5, 200;, a copy of 3hich is he$eto attached as +nne' A&
13& It is si,nificant that the .anifestation and .otion to 3ithd$a3 .ade ad.issions that $eco,ni?e the %alidity of the boa$ds $ep$esented by M$& <ocsin& Dhile
petitione$s do not ad.it to the ,enuineness o$ due e'ecution of the Sec$eta$yIs *e$tificates 3hich 3e$e not si,ned by the duly(elected *o$po$ate Sec$eta$y ' '
', it .ust be noted that the autho$ity of M$& <ocsin to file the instant petition 3as $eco,ni?ed and ad.itted the$ein& It 3as only clai.ed that such autho$ity E3as
lostE 3hen he 3as alle,edly $eplaced, 3hich $eplace.ent, as discussed abo%e, is still disputed& Thus, e%en the $u.p boa$ds ad.it that the filin, of this petition
by M$& <ocsin 3as duly autho$i?ed by P"T* and P=I<*"MS+T&
9;
' ' ' '
"n ece.be$ 21, 200;, the Sandi,anbayan 0Fifth i%ision1 issued an o$de$ in *i%il *ase #o& 0;(0001, to 3it4
' ' ' '
Dhe$efo$e, findin, the co.plaint to be sufficient in fo$. and substance and conside$in, the necessity to .aintain the status -uo lest ,$a%e and i$$epa$able in2u$y 3ould
$esult to plaintiff pendin, the hea$in, of the .ain incident 0In2unction and ecla$ation of #ullity1, let a T)MP"R+RC R)STR+I#I#/ "R)R issue o$de$in, the
defendants, thei$ a,ents, e'ecuti%es and othe$ pe$sons actin, upon thei$ inst$uctions, f$o. $eco,ni?in, o$ actin, pu$suant to the 19 #o%e.be$ 200; stoc8holde$s
.eetin,s of P"T* and P=I<*"MS+T& The $est$ainin, o$de$ is ,ood fo$ t3enty 0201 days f$o. notice to defendants o$ any of thei$ $ep$esentati%es&
95
' ' ' '
"n May ;, 2005, the P*// passed Resolution #o& 2005(009, %i?4
#"D, T=)R)F"R), be it R)S"<!), as it is he$eby R)S"<!), that4
1& The P*// $eco,ni?e the %alidity of the 19 #o%e.be$ 200; P"T*BPhilco.sat stoc8holde$sI .eetin, and confi$. as %alid the election of the follo3in,
,o%e$n.ent no.inees4 +tty& aniel *& /utie$$e?, Justice Santia,o J& Ranada and +tty& +llan S& Montano to the Aoa$d of i$ecto$s of P"T* and Rad.&
+b$aha. R& +besa.is, M$& Ra.on P& Jacinto and M$& Rodolfo /& Se$$ano, J$& to the Aoa$d of i$ecto$s of Philco.sat:
2& The P*// $eco,ni?e the %alidity of the 11 ece.be$ 200; and 15 Janua$y 2005 special stoc8holde$sI .eetin,s of Philco.sat subsidia$ies, P=* and T*I, at
3hich the ne3 ,o%e$n.ent no.inees 3e$e also elected as .e.be$s of thei$ $especti%e Aoa$d of i$ecto$s sub2ect to the EI esi$eE lette$ of the P$esident
$e-ui$in, the no.ination and installation of M$& )n$i-ue <ocsin in P=* %ice M$& Rodolfo Se$$ano:
3& The P*// di$ect the old ,o%e$n.ent no.inees and thei$ appointed *o$po$ate Sec$eta$ies unde$ pain of conte.pt to sub.it to the *o..ission 3ithin ten
0101 days f$o. thei$ $eceipt of the Resolution4
a& + co.plete set of Minutes of the Meetin,s of the Aoa$ds of i$ecto$s, )'ecuti%e *o..ittee, <e,al *o..ittee, +udit *o..ittee and all othe$
co..ittees 3ith a *e$tification unde$ oath of the co.pleteness the$eof f$o. 1995 up to the p$esent:
b& + co.plete and updated list of stoc8holde$s of the co$po$ations 3ith thei$ last 8no3n add$esses and nu.be$ of sha$es duly ce$tified by the
*o$po$ate Sec$eta$y andBo$ Stoc8 T$ansfe$ +,ent:
c& *opies of all audited and inte$i. financial state.ents of these co$po$ations: and
d& The stoc8 t$ansfe$ boo8 and stoc8 ce$tificate boo8let of P=* and T*I&
4& The P*// $e-uest the Secu$ities and )'chan,e *o..ission 0ES)*E1 and the Philippine Stoc8 )'chan,e 0EPS)E1 to $e,ulate and .onito$ P"T*,
Philco.sat, P=* and T*I, to coope$ate 3ith the ne3 ,o%e$n.ent no.inees and assist the. in co.plyin, 3ith the $epo$to$ial $e-ui$e.ents of these
co$po$ations, includin,, but not li.ited to, co.pellin, the old ,o%e$n.ent no.inees and thei$ appointed office$s to sub.it copies of the docu.ents $efe$$ed to
abo%e:
R)S"<!), FFRT=)R, that the *o..ission Sec$eta$y be di$ected to fu$nish copies of this Resolution to the old ,o%e$n.ent no.ineesBdi$ecto$s of P"T*, Philco.sat,
P=* and T*I na.ely )n$i-ue <ocsin, Manuel +ndal, Julio Jalandoni, /uy e <eon, Aenito +$aneta and Ronaldo Salon,a, to the ne3 ,o%e$n.ent no.inees aniel
/utie$$e?, Santia,o Ranada, +llan Montano, +b$aha. +besa.is, Ra.on Jacinto, Rodolfo Se$$ano, J$& )n$i-ue <ocsin and to the S)*, PS) and ASP fo$ thei$ ,uidance,
obse$%ation and co.pliance&
99
"n July 16, 2005, the *+ $ende$ed its assailed decision in *&+&(/&R& SP #o& 10243;, annullin, and settin, aside the o$de$ dated ece.be$ 13, 200; and the DPI issued
on ece.be$ 1;, 200; by the RT* 0A$anch 621&
100
"n Feb$ua$y 13, 2009, the *+ denied the .otion fo$ $econside$ation&
101
"n Septe.be$ 30, 2005, the *+ p$o.ul,ated its assailed consolidated decision in *&+&(/&R& SP #o& 9509;, *&+&(/&R& SP #o& 95399 and *&+&(/&R& SP #o& 10122>,
dis.issin, the petitions&
102
The *+ held that the RT* acted 3ithin its 2u$isdiction in $esol%in, the int$a(co$po$ate dispute: that the conduct of p$e(t$ial 3as not $e-ui$ed in
co$po$ate election cases: that the RT* had the autho$ity to decide *i%il *ase #o& 04(1049: that the decision of the RT* 3as %alid and co$$ect: and that the petition fo$
conte.pt filed a,ainst +tty& Si8ini *& <abastilla 3as 3ithout basis& The *+ lifted and dissol%ed the DPI issued on June 2>, 200;&
103
"n ece.be$ 23, 2005, the *+ denied the .otion fo$ $econside$ation&
104
Issues
/&R& #o& 154622
D=)T=)R T=) S+#I/+#A+C+#7S R)FFS+< T" T+H) *"/#IN+#*) "F T=) *"#TR"!)RSC "# T=) /R"F# T=+T T=) S+M) IS +# I#TR+(
*"RP"R+T) *"#TR"!)RSC IS IMPR"P)R +# +/+I#ST JFRISPRF)#*)&
10>
/&R& #o& 154;12(14
D=)T=)R T=) S+#I/+#A+C+# =+S "RI/I#+< +# )P*<FSI!) JFRISI*TI"# "!)R S)QF)ST)R) *"RP"R+TI"#S, S)QF)STR+TI"#(R)<+T)
*+S)S, +# +#C +# "!)R +<< I#*I)#TS +RISI#/ FR"M, I#*I)#T+< T", "R R)<+T) T" SF*= *+S)S&
106
D=)T=)R T=) S)QF)STR+TI"# "!)R P"T* +# P=I<*"MS+T R)M+I#S )SPIT) T=) +PPR"!+< "F T=) P*//(I<FS"RI" *"MPR"MIS) +/R))M)#T
I# /&R& #"S& 141;96 +# 141504&
10;
D=)T=)R T=) M+H+TI RT* M+C R)#)R JF/M)#T "# T=) *"MP<+I#T PFRSF+#T T" T=) I#T)RIM RF<)S D=)# T=) S+I *"FRT =+S #"T A))#
)SI/#+T) +S + SP)*I+< *"MM)R*I+< *"FRT AC T=) SFPR)M) *"FRT&
105
D=)T=)R T=) "R)R T" *"#F*T PR)(TRI+< +# T=) SFAMISSI"# "F T=) PR)(TRI+< ARI)FS IS M+#+T"RCF#)R +<< *+S)S FI<) F#)R T=)
I#T)RIM RF<)S&
109
/&R& #o& 156>90
D=)T=)R T=) *"FRT "F +PP)+<S )RR) D=)# IT #F<<IFI) T=) DRIT "F PR)<IMI#+RC I#JF#*TI"# ISSF) AC T=) TRI+< *"FRT&
110
/&R& #o& 156066
D=)T=)R "R #"T T=) *+ )RR) I# RF<I#/ T=+T T=) R)/I"#+< TRI+< *"FRT "F M+H+TI =+ JFRISI*TI"# "!)R *I!I< *+S) #"& 04(1049:
D=)T=)R "R #"T T=) *+ )RR) I# RF<I#/ T=+T T=) )*ISI"# I# /&R& #"S& 141;96 +# 141504 FI#+<<C S)TT<) T=) ISSF)S I# *I!I< *+S) #"& 04(
1049 +# *"#S)QF)#T<C +##F<<) T=) P"T* PR"PC I# F+!"R "F M)SSRS& #I)T" +# <"*SI#:
D=)T=)R "R #"T T=) *+ )RR) I# RF<I#/ T=+T AR+#*= 135 *"F< STI<< +*T "# +# )*I) *I!I< *+S) #"& 04(1049 )SPIT) T=IS ="#"R+A<)
*"FRT7S R)!"*+TI"# "F ITS )SI/#+TI"# +S SP)*I+< *"MM)R*I+< *"FRT "F RT* M+H+TI *ITC:
D=)T=)R "R #"T T=) *+ )RR) I# RF<I#/ T=+T PR)(TRI+< +# TRI+< *+# A) ISP)#S) DIT= I# *I!I< *+S) #"& 01(1049:
D=)T=)R "R #"T T=) *+ )RR) I# +FFIRMI#/ T=) )*ISI"# "F T=) TRI+< *"FRT D=I*= D+S *"#TR+RC T" T=) F+*TS +# )PISTI#/
JFRISPRF)#*)&
111
The *ou$t $educes the issues fo$ $esolution to t3o .ain ones, na.ely4
0a1 id RT* 0A$anch 1351 ha%e 2u$isdiction o%e$ the int$a(co$po$ate cont$o%e$sy 0election contest1O
0b1Dho a.on, the contendin, pa$ties o$ ,$oups held the cont$ollin, inte$est in P"T* and, conse-uently, in P=I<*"MS+T and P=*O
In /&R& #o& 154;12(14, the petitione$s postulate that the Sandi,anbayan had o$i,inal and e'clusi%e 2u$isdiction o%e$ se-ueste$ed co$po$ations, se-uest$ation($elated
cases, and any and o%e$ all incidents a$isin, f$o., o$ incidental o$ $elated to such cases:
112
that it 3as e$$o$ on the pa$t of the *+ to conclude that the Sandi,anbayan 3as
auto.atically ousted of 2u$isdiction o%e$ the se-ueste$ed assets once the co.plaint alle,ed an int$a(co$po$ate dispute due to the se-ueste$ed assets bein, in custodia
le,is of the Sandi,anbayan:
113
that the se-uest$ation of P"T* and P=I<*"MS+T $e.ained despite the app$o%al of the co.p$o.ise a,$ee.ent in /&R& #o& 141;96 and
/&R& #o& 141504: that because the p$oceedin,s in%ol%in, the sha$es of the #ieto, +f$ica and Ponce )n$ile Fa.ilies 3e$e still pendin, and had not yet been finally
$esol%ed,
114
the RT* could not $ende$ a %alid 2ud,.ent on the dispute because it had not been desi,nated as a *o..e$cial *ou$t:
11>
and that the conduct of a p$e(t$ial
and the sub.ission of a p$e(t$ial b$ief 3e$e .andato$y unde$ all cases filed unde$ the Inte$i. Rules&
116
In its *o..ent, P=I<*"MS+T counte$s that the $ulin,s in "la,ue$ and el Mo$al 3e$e not applicable because such cases a$ose f$o. diffe$ent factual settin,s:
11;
that
the RT* had a.ple autho$ity to $ule upon the int$a(co$po$ate dispute:
115
and that the conduct of p$e(t$ial 3as not .andato$y in co$po$ate election cases&
119
In /&R& #o& 154622, the petitione$s clai. that the Sandi,anbayan co..itted an e$$o$ in $efusin, to ta8e co,ni?ance of the in2unction suit they had filed on the ,$ound that
it 3as an int$a(co$po$ate dispute: that the Sandi,anbayan the$eby 3ent a,ainst the spi$it and intent of the *ou$t7s $ulin,s st$essin, the i.po$tance of p$otectin,
se-ueste$ed assets and $eco%e$in, ill(,otten 3ealth:
120
and that the *ou$t7s p$onounce.ent in /&R& #o& 1;1;99 affi$.in, the status of P"T* sha$es as se-ueste$ed
sha$es 3as .o$e than enou,h $eason fo$ the Sandi,anbayan to ta8e co,ni?ance of the in2unction suit&
121
In its *o..ent,
122
$espondent Iluso$io(+f$ica /$oup counte$ that the in2unction suit 3as not 3ithin the 2u$isdiction of the Sandi,anbayan: and that <ocsin had no autho$ity
to institute the in2unction suit due to his election bein, a patent nullity conside$in, that the p$o'ies issued by IR* and Mid(Pasi, could not be ,i%en effect afte$ the *ou$t
had affi$.ed the $ulin, of the Sandi,anbayan on IR* and Mid(Pasi,7s sha$eholdin,s in P"T*&
123
In /&R& #o& 156>90, P=I<*"MS+T posits that the t$ial cou$t p$ope$ly issued the in2unction a,ainst P=* afte$ $ecei%in, e%idence of .assi%e lootin, of co$po$ate funds
that led to P=*7s e'te$nal audito$ bein, suspended as found by Senate *o..ittees and the S)*&
124
In its *o..ent, P=* states that P=I<*"MS+T failed to establish its $i,ht in esse o$ the e'istence of a $i,ht to be p$otected so as to 3a$$ant the issuance of the in2uncti%e
3$it in its fa%o$&
12>
In /&R& #o& 156066, P=* a$,ues that the *+ e$$ed in $ulin, that the RT* 0A$anch 1351 3as clothed 3ith autho$ity to decide *i%il *ase #o& 04(1049 because P"T* and
P=I<*"MS+T 3e$e unde$ se-uest$ation of the P*//: that, acco$din,ly, all issues and cont$o%e$sies a$isin, o$ $elated o$ incidental to the se-uest$ation fell unde$ the
sole and e'clusi%e o$i,inal 2u$isdiction of the Sandi,anbayan:
126
that the *+ e$$ed in app$eciatin, the natu$e of *i%il *ase #o& 04(1049: that the cont$o%e$sy, albeit
in%ol%in, an int$a(co$po$ate dispute, 3as still co,ni?able by the Sandi,anbayan because P"T* and P=I<*"MS+T sha$es 3e$e unde$ se-uest$ation:
12;
that the $ulin, in
/&R& #os& 141;96 and 141504 does not constitute $es 2udicata: that e%en assu.in, that the RT* 0A$anch 1351 had 2u$isdiction, its autho$ity 3as $e%o8ed p$io$ to the
issuance of its assailed 2ud,.ent:
125
and that P=* 3as denied due p$ocess due to the RT*7s open %iolation of the Inte$i. Rules&
129
In its *o..ent, P=I<*"MS+T counte$s that the insistence of P=* that the se-uest$ation of P=I<*"MS+T auto.atically too8 a3ay the 2u$isdiction of the RT* and
confe$$ed it to the Sandi,anbayan 3as .isplaced:
130
that the $ulin,s in "la,ue$ and el Mo$al a$e not on all fou$s 3ith this case:
131
that the issue of the sha$es bein, ill(
,otten 3as al$eady settled in /&R& #os& 141;96 and 141504:
132
that the RT* 0A$anch 1351 had a.ple autho$ity to decide the int$a(co$po$ate cont$o%e$sy because the
case, bein, al$eady sub.itted fo$ decision, $e.ained co,ni?able by the sa.e b$anch:
133
and that the conduct of the p$e(t$ial 3as not $e-ui$ed in election cases&
134
Rulin, of the *ou$t
De )#C the petitions in /&R& #o& 154622, /&R& #os&154;12(14, and /&R& #o&156066: but /R+#T the petition in /&R& #o& 156>90&
1&
RT* 0A$anch 1351 had 2u$isdiction
o%e$ the election contest bet3een the
Iluso$io(+f$ica /$oups and #ieto(<ocsin /$oups
Aoth *i%il *ase #o& 04(1049 of the RT* 0A$anch 1351 in Ma8ati *ity and SA *i%il *ase #o& 0195 of the Sandi,anbayan in%ol%ed int$a(co$po$ate cont$o%e$sies a.on, the
stoc8holde$s and office$s of the co$po$ations& It is settled that the$e is an int$a(co$po$ate cont$o%e$sy 3hen the dispute in%ol%es any of the follo3in, $elationships, to 3it4
0a1 bet3een the co$po$ation, pa$tne$ship o$ association and the public: 0b1 bet3een the co$po$ation, pa$tne$ship o$ association and the State in so fa$ as its f$anchise,
pe$.it o$ license to ope$ate is conce$ned: 0c1 bet3een the co$po$ation, pa$tne$ship o$ association and its stoc8holde$s, pa$tne$s, .e.be$s o$ office$s: and 0d1 a.on, the
stoc8holde$s, pa$tne$s o$ associates the.sel%es&
13>
*onse-uently, 3e a,$ee 3ith the *+7s consolidated decision p$o.ul,ated on Septe.be$ 30, 2005 that the RT* 0A$anch 1351, not the Sandi,anbayan, had 2u$isdiction
because *i%il *ase #o& 04(1049 did not in%ol%e a se-uest$ation($elated incident but an int$a(co$po$ate cont$o%e$sy&
"$i,inally, Section > of P$esidential ec$ee 0P&&1 #o& 902(+ %ested the o$i,inal and e'clusi%e 2u$isdiction o%e$ cases in%ol%in, the follo3in, in the S)*, to 3it4
' ' ' '
0a1 e%ices o$ sche.es e.ployed by, o$ any acts of the boa$d of di$ecto$s, business associates, its office$s o$ pa$tne$s, a.ountin, to f$aud and
.is$ep$esentation 3hich .ay be det$i.ental to the inte$est of the public andBo$ of the stoc8holde$, pa$tne$s, .e.be$s of associations o$ o$,ani?ation $e,iste$ed
3ith the *o..ission:
0b1 *ont$o%e$sies a$isin, out of int$a(co$po$ate o$ pa$tne$ship $elations, bet3een and a.on, stoc8holde$s, .e.be$s o$ associates: bet3een any o$ all of the.
and the co$po$ation, pa$tne$ship o$ association of 3hich they a$e stoc8holde$s, .e.be$s o$ associates, $especti%ely: and bet3een such co$po$ation,
pa$tne$ship o$ association and the State insofa$ as it conce$ns thei$ indi%idual f$anchise o$ $i,ht as such entity:
0c1 *ont$o%e$sies in the election o$ appoint.ent of di$ecto$s, t$ustees, office$s o$ .ana,e$s of such co$po$ations, pa$tne$ship o$ associations:
0d1 Petitions of co$po$ations, pa$tne$ships o$ associations to be decla$ed in the state of suspension of pay.ent in cases 3he$e the co$po$ation, pa$tne$ship o$
association possesses sufficient p$ope$ty to co%e$ all its debts but fo$esees the i.possibility of .eetin, the. 3hen they $especti%e fall due o$ in cases 3he$e
the co$po$ation, pa$tne$ship o$ association has no sufficient assets to co%e$ its liabilities but is unde$ the .ana,e.ent of a Rehabilitation Recei%e$ o$
Mana,e.ent *o..ittee c$eated pu$suant to this ec$ee&
136
Fpon the enact.ent of Republic +ct #o& 5;99 0The Secu$ities Re,ulation *ode1, effecti%e on +u,ust 5, 2000, the 2u$isdiction of the S)* o%e$ int$a(co$po$ate
cont$o%e$sies and the othe$ cases enu.e$ated in Section > of P&& #o& 902(+ 3as t$ansfe$$ed to the Re,ional T$ial *ou$t pu$suant to Section >&2 of the la3, 3hich
p$o%ides4
>&2& The *o..ission7s 2u$isdiction o%e$ all cases enu.e$ated in Section > of P$esidential ec$ee #o& 902(+ is he$eby t$ansfe$$ed to the *ou$ts of ,ene$al 2u$isdiction o$
the app$op$iate Re,ional T$ial *ou$t: P$o%ided, That the Sup$e.e *ou$t in the e'e$cise of its autho$ity .ay desi,nate the Re,ional T$ial *ou$t b$anches that shall
e'e$cise 2u$isdiction o%e$ these cases& The *o..ission shall $etain 2u$isdiction o%e$ pendin, cases in%ol%in, int$a(co$po$ate disputes sub.itted fo$ final $esolution 3hich
should be $esol%ed 3ithin one 011 yea$ f$o. the enact.ent of this *ode& The *o..ission shall $etain 2u$isdiction o%e$ pendin, suspension of pay.entsB$ehabilitation
cases filed as of 30 June 2000 until finally disposed&
To i.ple.ent Republic +ct #o& 5;99, the *ou$t p$o.ul,ated its $esolution of #o%e.be$ 21, 2000 in +&M& #o& 00(11(03(S* desi,natin, ce$tain b$anches of the RT* to t$y
and decide the cases enu.e$ated in Section > of P&& #o& 902(+& +.on, the RT*s desi,nated as special co..e$cial cou$ts 3as the RT* 0A$anch 1351 in Ma8ati *ity,
the t$ial cou$t fo$ *i%il *ase #o& 04(1049&
"n Ma$ch 13, 2001, the *ou$t adopted and app$o%ed the Inte$i. Rules of P$ocedu$e fo$ Int$a(*o$po$ate *ont$o%e$sies unde$ Republic +ct #o& 5;99 in +&M& #o& 01(2(04(
S*, effecti%e on +p$il 1, 2001, 3hose Section 1 and Section 2, Rule 6 state4
Section 1& *ases co%e$ed& K The p$o%isions of this $ule shall apply to election contests in stoc8 and non(stoc8 co$po$ations&
Section 2& efinition& K +n election contest $efe$s to any cont$o%e$sy o$ dispute in%ol%in, title o$ clai. to any electi%e office in a stoc8 o$ non(stoc8 co$po$ation, the
%alidation of p$o'ies, the .anne$ and %alidity of elections, and the -ualifications of candidates, includin, the p$ocla.ation of 3inne$s, to the office of di$ecto$, t$ustee o$
othe$ office$ di$ectly elected by the stoc8holde$s in a close co$po$ation o$ by .e.be$s of a non(stoc8 co$po$ation 3he$e the a$ticles of inco$po$ation o$ by(la3s so
p$o%ide& 0bold unde$sco$in, supplied1
*onfo$.ably 3ith Republic +ct #o& 5;99, and 3ith the ensuin, $esolutions of the *ou$t on the i.ple.entation of the t$ansfe$ of 2u$isdiction to the Re,ional T$ial *ou$t, the
RT* 0A$anch 1351 in Ma8ati had the autho$ity to hea$ and decide the election contest bet3een the pa$ties he$ein& The$e should be no disa,$ee.ent that 2u$isdiction o%e$
the sub2ect .atte$ of an action, bein, confe$$ed by la3, could neithe$ be alte$ed no$ con%eniently set aside by the cou$ts and the pa$ties&
13;
To butt$ess its position, ho3e%e$, the #ieto(<ocsin /$oup $elied on Section 2 of )'ecuti%e "$de$ #o& 14,
135
3hich e'p$essly .andated that the P*// Eshall file all such
cases, 3hethe$ ci%il o$ c$i.inal, 3ith the Sandi,anbayan, 3hich shall ha%e e'clusi%e and o$i,inal 2u$isdiction the$eof&E
The $eliance 3as un3a$$anted&
Section 2 of )'ecuti%e "$de$ #o& 14 had no application he$ein si.ply because the sub2ect .atte$ in%ol%ed 3as an int$a(co$po$ate cont$o%e$sy, not any incidents a$isin,
f$o., incidental to, o$ $elated to any case in%ol%in, assets 3hose natu$e as ill(,otten 3ealth 3as yet to be dete$.ined& In San Mi,uel *o$po$ation %& Hahn,
139
the *ou$t
held that4
The sub2ect .atte$ of his co.plaint in the S)* does not the$efo$e fall 3ithin the a.bit of this *ou$t7s Resolution of +u,ust 10, 1955 on the cases 2ust .entioned, to the
effect that, citin, P*// %& Pena, et al&, all cases of the *o..ission $e,a$din, Rthe funds, .oneys, assets, and p$ope$ties ille,ally ac-ui$ed o$ .isapp$op$iated by fo$.e$
P$esident Fe$dinand Ma$cos, M$s& I.elda Ro.ualde? Ma$cos, thei$ close $elati%es, Subo$dinates, Ausiness +ssociates, u..ies, +,ents, o$ #o.inees, 3hethe$ ci%il o$
c$i.inal, a$e lod,ed 3ithin the e'clusi%e and o$i,inal 2u$isdiction of the Sandi,anbayan,7 and all incidents a$isin, f$o., incidental to, o$ $elated to, such cases necessa$ily
fall li8e3ise unde$ the Sandi,anbayanIs e'clusi%e and o$i,inal 2u$isdiction, sub2ect to $e%ie3 on ce$tio$a$i e'clusi%ely by the Sup$e.e *ou$t&E =is co.plaint does not
in%ol%e any p$ope$ty ille,ally ac-ui$ed o$ .isapp$op$iated by Ma$cos, et al&, o$ Eany incidents a$isin, f$o., incidental to, o$ $elated toE any case in%ol%in, such p$ope$ty,
but assets indisputably belon,in, to San Mi,uel *o$po$ation 3hich 3e$e, in his 0de los +n,elesI1 %ie3, bein, illicitly co..itted by a .a2o$ity of its boa$d of di$ecto$s to
ans3e$ fo$ loans assu.ed by a siste$ co$po$ation, #eptunia *o&, <td&
e los +n,eles7 co.plaint, in fine, is confined to the issue of the %alidity of the assu.ption by the co$po$ation of the indebtedness of #eptunia *o&, <td&, alle,edly fo$ the
benefit of ce$tain of its office$s and stoc8holde$s, an issue e%idently distinct f$o., and not e%en $e.otely $e-ui$in, in-ui$y into the .atte$ of 3hethe$ o$ not the 33,133,266
SM* sha$es se-ueste$ed by the P*// belon, to Ma$cos and his c$onies o$ du..ies 0on 3hich, issue, as al$eady pointed out, de los +n,eles, in co..on 3ith the
P*//, had in fact espoused the affi$.ati%e1& e los +n,eles7 dispute, as stoc8holde$ and di$ecto$ of SM*, 3ith othe$ SM* di$ecto$s, an int$a(co$po$ate one, to be su$e,
is of no conce$n to the Sandi,anbayan, ha%in, no $ele%ance 3hate%e$ to the o3ne$ship of the se-ueste$ed stoc8& The contention, the$efo$e, that in %ie3 of this *ou$tIs
$ulin, as $e,a$ds the se-ueste$ed SM* stoc8 abo%e ad%e$ted to, the S)* has no 2u$isdiction o%e$ the de los +n,eles co.plaint, cannot be sustained and .ust be
$e2ected& The dispute conce$ns acts of the boa$d of di$ecto$s clai.ed to a.ount to f$aud and .is$ep$esentation 3hich .ay be det$i.ental to the inte$est of the
stoc8holde$s, o$ is one a$isin, out of int$a(co$po$ate $elations bet3een and a.on, stoc8holde$s, o$ bet3een any o$ all of the. and the co$po$ation of 3hich they a$e
stoc8holde$s&
140
Mo$eo%e$, the 2u$isdiction of the Sandi,anbayan has been held not to e'tend e%en to a case in%ol%in, a se-ueste$ed co.pany not3ithstandin, that the .a2o$ity of the
.e.be$s of the boa$d of di$ecto$s 3e$e P*// no.inees& The *ou$t .a$8ed this distinction clea$ly in =oliday Inn 0Phils&1, Inc& %& Sandi,anbayan,
141
holdin, thusly4
The sub2ect(.atte$ of petitione$7s p$oposed co.plaint(ininte$%ention in%ol%es basically, an inte$p$etation of cont$act, i&e&, 3hethe$ o$ not the $i,ht of fi$st $efusal could
andBo$ should ha%e been obse$%ed, based on the +ddendu.B+,$ee.ent of July 14, 1955, 3hich e'tended the te$.s and conditions of the o$i,inal a,$ee.ent of Janua$y
1, 19;6& The -uestion of 3hethe$ o$ not the se-ueste$ed p$ope$ty 3as la3fully ac-ui$ed by Robe$to S& Aenedicto has no bea$in, on the le,ality of the te$.ination of the
.ana,e.ent cont$act by #R=*7s Aoa$d of i$ecto$s& The t3o a$e independent and un$elated issues and $esolution of eithe$ .ay p$oceed independently of each othe$&
Fpholdin, the le,ality of Aenedicto7s ac-uisition of the se-ueste$ed p$ope$ty is not a ,ua$antee that =IPIs .ana,e.ent cont$act 3ould be upheld, fo$ only the Aoa$d of
i$ecto$s of #R=* is -ualified to .a8e such a dete$.ination&
<i8e3ise, the Sandi,anbayan co$$ectly denied 2u$isdiction o%e$ the p$oposed co.plaint(in(inte$%ention& The o$i,inal and e'clusi%e 2u$isdiction ,i%en to the Sandi,anbayan
o%e$ P*// cases pe$tains to 0a1 cases filed by the P*//, pu$suant to the e'e$cise of its po3e$s unde$ )'ecuti%e "$de$ #os& 1, 2 and 14& as a.ended by the "ffice of
the P$esident, and +$ticle P!III, Section 26 of the *onstitution, i&e&, 3he$e the p$incipal cause of action is the $eco%e$y of ill(,otten 3ealth, as 3ell as all incidents a$isin,
f$o., incidental to, o$ $elated to such cases and 0b1 cases filed by those 3ho 3ish to -uestion o$ challen,e the co..ission7s acts o$ o$de$s in such cases&
)%idently, petitione$7s p$oposed co.plaint(in(inte$%ention is an o$dina$y ci%il case that does not pe$tain to the Sandi,anbayan& +s the Solicito$ /ene$al stated, the
co.plaint is not di$ected a,ainst P*// as an entity, but a,ainst a p$i%ate co$po$ation, in 3hich case it is not pe$ se, a P*// case&
In the cases no3 befo$e the *ou$t, 3hat a$e sou,ht to be dete$.ined a$e the p$op$iety of the election of a pa$ty as a i$ecto$, and his autho$ity to act in that capacity&
Such issues should be e'clusi%ely dete$.ined only by the RT* pu$suant to the pe$tinent la3 on 2u$isdiction because they did not conce$n the $eco%e$y of ill(,otten 3ealth&
2&
<ac8 of p$e(t$ial 3as not fatal
in int$a(co$po$ate election contests
Fnde$ Section 4 of Rule 6 0)lection *ontests1 of the Inte$i. Rules of P$ocedu$e fo$ Int$a(*o$po$ate *ont$o%e$sies, 3hich too8 effect on +p$il 1, 2001 0+&M& #o& 01(2(04(
S*1, issued pu$suant to Republic +ct #o& 5;99, the t$ial cou$t, 3ithin t3o days f$o. the filin, of the co.plaint, .ay out$i,htly dis.iss the co.plaint upon a conside$ation
of the alle,ations the$eof if the co.plaint is not sufficient in fo$. and substance, o$, if the co.plaint is sufficient, .ay o$de$ the issuance of su..ons 3hich shall be
se$%ed, to,ethe$ 3ith a copy of the co.plaint, on the defendant 3ithin t3o days f$o. its issuance& Should it find the need to hold a hea$in, to cla$ify specific factual
.atte$s, the t$ial cou$t shall set the case fo$ hea$in,, and the hea$in, shall be co.pleted not late$ than 1> days f$o. the date of the fi$st hea$in,& The t$ial cou$t is
.andated to $ende$ a decision 3ithin 1> days f$o. $eceipt of the last pleadin,, o$ f$o. the date of the last hea$in,, as the case .ay be&
The *+ co$$ectly pointed out that Rule 6 no3he$e $e-ui$ed that the RT* actin, as a special co..e$cial cou$t should fi$st conduct a p$e(t$ial confe$ence befo$e it could
$ende$ its 2ud,.ent in a co$po$ate election contest& =ence, the RT* 0A$anch 1351 in Ma8ati p$ope$ly hea$d the case of annul.ent of the election 3ith dispatch in
acco$dance 3ith the ,uidelines set in the $esolution in +&M& #o& 01(2(04(S*& Dith the $e-ui$e.ents of due p$ocess ha%in, been se$%ed, no defect infi$.ed the RT*7s
$ulin, to set aside the election, and to oust those ille,ally elected&
3&
RT* 0A$anch 1351 $etained its 2u$isdiction
o%e$ the case that 3as $ipe fo$ ad2udication
Dhile it is t$ue that this *ou$t .ean3hile $e%o8ed on June 2;, 2006 the desi,nation of the RT* 0A$anch 1351 to act as a special co..e$cial cou$t, th$ou,h the $esolution
in +&M& #o& 03(3(03(S*, the RT* 0A$anch 1351 did not the$eafte$ beco.e be$eft of the 2u$isdiction to decide the cont$o%e$sy because of the e'ception e'p$essly stated in
the $esolution in +&M& #o& 03(3(03(S* itself, to 3it4
' ' ' '
Fpon the effecti%ity of this desi,nation, all co..e$cial cases pendin, befo$e A$anches 135 and 61 shall be t$ansfe$$ed to RT*, A$anch 149, Ma8ati *ity, e'cept those
3hich a$e al$eady sub.itted fo$ decision, 3hich cases shall be decided by the actin, p$esidin, 2ud,es the$eat& ' ' '&
*ont$a$y to the asse$tion of the #ieto(P*// ,$oup, the fo$e,oin, p$o%ision did not $e-ui$e the issuance of any special o$de$ statin, that the case 3as al$eady sub.itted
fo$ decision& It 3as sufficient, ,i%en the su..a$y natu$e of int$a(co$po$ate cont$o%e$sies, especially election contests, that the t$ial cou$t 3as done collatin, all the
e%idence f$o. the pleadin,s 0i&e&, pleadin,s, affida%its, docu.enta$y and othe$ e%idence attached the$eto, and the ans3e$s of the 3itnesses to the cla$ificato$y -uestions
of the cou$t ,i%en du$in, the hea$in,s1, if dee.ed sufficient, o$ f$o. the cla$ificato$y hea$in,s, if conducted& The pu$pose of the e'ception is to ob%iate the $epetition of the
,athe$in, of e%idence& It is clea$ f$o. Section 9 of Rule 6 that afte$ the collation of e%idence, the only thin, that $e.ains is fo$ the RT* to $ende$ its decision 3ithout
issuin, a special o$de$ decla$in, the case sub.itted fo$ decision, %i?4
Section 9& ecision& K The *ou$t shall $ende$ a decision 3ithin fifteen 01>1 days f$o. $eceipt of the last pleadin,, o$ f$o. the date of the last hea$in,, as the case .ay be&
The decision shall be based on the pleadin,s, affida%its, docu.enta$y and othe$ e%idence attached the$eto and the ans3e$s of the 3itnesses to the cla$ificato$y -uestions
of the cou$t ,i%en du$in, the hea$in,s&
4&
Rulin, in /&R& #o& 141;96 and
/&R& #o& 141504 3as p$ope$ly applied
to *i%il *ase #o& 04(1049
It 3as not the p$inciple of $es 2udicata, as clai.ed by the #ieto(P*// /$oup, that 2ustified the application to *i%il *ase #o& 04(1049 of the *ou$t7s $ulin, in /&R& #o&
141;96 and /&R& #o& 141504 in%alidatin, the P=* elections conducted by the #ieto(P*// /$oup, but $athe$ the doct$ine of sta$e decisis et non -uieta .o%e$e, 3hich
.eans Eto adhe$e to p$ecedents, and not to unsettle thin,s 3hich a$e established&E
142
Fnde$ the doct$ine of sta$e decisis, 3hen the *ou$t has once laid do3n a p$inciple of la3 as applicable to a ce$tain state of facts, the cou$ts 3ill adhe$e to that p$inciple,
and apply it to all futu$e cases in 3hich the facts a$e substantially si.ila$, $e,a$dless of 3hethe$ the pa$ties and p$ope$ty in%ol%ed a$e the sa.e&
143
The doct$ine of sta$e
decisis is based upon the le,al p$inciple o$ $ule in%ol%ed, not upon the 2ud,.ent that $esults the$ef$o.& It is in this pa$ticula$ sense that sta$e decisis diffe$s f$o. $es
2udicata, because $es 2udicata is based upon the 2ud,.ent&
144
The doct$ine of sta$e decisis is ,$ounded on the necessity fo$ secu$in, ce$tainty and stability in 2udicial decisions, thus4
Ti.e and a,ain, the *ou$t has held that it is a %e$y desi$able and necessa$y 2udicial p$actice that 3hen a cou$t has laid do3n a p$inciple of la3 as applicable to a ce$tain
state of facts, it 3ill adhe$e to that p$inciple and apply it to all futu$e cases in 3hich the facts a$e substantially the sa.e& Sta$e decisis et non -uieta .o%e$e& Stand by the
decisions and distu$b not 3hat is settled& Sta$e decisis si.ply .eans that fo$ the sa8e of ce$tainty, a conclusion $eached in one case should be applied to those that
follo3 if the facts a$e substantially the sa.e, e%en thou,h the pa$ties .ay be diffe$ent& It p$oceeds f$o. the fi$st p$inciple of 2ustice that, absent any po3e$ful
counte$%ailin, conside$ations, li8e cases ou,ht to be decided ali8e& Thus, 3he$e the sa.e -uestions $elatin, to the sa.e e%ent ha%e been put fo$3a$d by the pa$ties
si.ila$ly situated as in a p$e%ious case liti,ated and decided by a co.petent cou$t, the $ule of sta$e decisis is a ba$ to any atte.pt to $eliti,ate the sa.e issue&
14>
The -uestion of 3ho held the .a2o$ity sha$eholdin,s in P"T* and P=I<*"MS+T 3as definiti%ely laid to $est in /&R& #o& 141;96 and /&R& #o& 141504, 3he$eby the
*ou$t upheld the %alidity of the co.p$o.ise a,$ee.ent the /o%e$n.ent had concluded 3ith +tty& Iluso$io& Said the *ou$t4K
Dith the i.p$i.atu$ of no less than the fo$.e$ P$esident Fidel !& Ra.os and the app$o%al of the Sandi,anbayan, the *o.p$o.ise +,$ee.ent .ust be acco$ded ut.ost
$espect& Such a.icable settle.ent is not only allo3ed but e%en encou$a,ed& Thus, in Republic %s& Sandi,anbayan, 3e held4
RIt is ad%ocated by the P*// that $espondent Aenedicto $etainin, a po$tion of the assets is anathe.a to, and incon,$uous 3ith, the ?e$o($etention policy of the
,o%e$n.ent in the pu$suit fo$ the $eco%e$y of all ill(,otten 3ealth pu$suant to Section 20a1 of )'ecuti%e "$de$ #o& 1& Dhile full $eco%e$y is ideal, the P*// is not p$ecluded
f$o. ente$in, into a *o.p$o.ise +,$ee.ent 3hich entails $ecip$ocal concessions if only to e'pedite $eco%e$y so that the $e.ainin, Rfunds, assets and othe$ p$ope$ties
.ay be used to hasten national econo.ic $eco%e$y7 03$d D=)R)+S clause, )'ecuti%e "$de$ #o& 14(+1& To be su$e, the so(called ?e$o $etention .entioned in Section
20a1 of )'ecuti%e "$de$ #o& 1 had been .odified to $ead4
RD=)R)+S, the P$esidential *o..ission on /ood /o%e$n.ent 3as c$eated on Feb$ua$y 25, 1956 by )'ecuti%e "$de$ #o& 1 to assist the P$esident in the $eco%e$y of ill(
,otten 3ealth accu.ulated by fo$.e$ P$esident Fe$dinand )& Ma$cos, his i..ediate fa.ily, $elati%es, subo$dinates and close associates7:
3hich undoubtedly su,,ests a depa$tu$e f$o. the fo$.e$ ,oal of total $estitution&
' ' ' '
The autho$ity of the P*// to ente$ into *o.p$o.ise +,$ee.ents in ci%il cases and to ,$ant i..unity, unde$ ce$tain ci$cu.stances, in c$i.inal cases is no3 settled and
established& In Republic of the Philippines and Jose "& *a.pos, J$& %s& Sandi,anbayan, et al& 01;3 S*R+ ;2 L1959M1, this *ou$t cate,o$ically stated that a.icable
settle.ents and co.p$o.ises a$e not only allo3ed but actually encou$a,ed in ci%il cases& + specific ,$ant of i..unity f$o. c$i.inal p$osecutions 3as also sustained& In
Aenedicto %s& Aoa$d of +d.inist$ato$s of Tele%ision Stations RP#, AA*, and IA* 020; S*R+ 6>9 L1992M1, the *ou$t $uled that the autho$ity of the P*// to %alidly ente$
into *o.p$o.ise +,$ee.ent fo$ thepu$pose of a%oidin, liti,ation o$ puttin, an end to one al$eady co..enced 3as indisputable& ' ' ' 0italics supplied1
=a%in, been sealed 3ith cou$t app$o%al, the *o.p$o.ise +,$ee.ent has the fo$ce of $es 2udicata bet3een the pa$ties and should be co.plied 3ith in acco$dance 3ith its
te$.s& Pu$suant the$eto, !icto$ia *& de los Reyes, *o$po$ate Sec$eta$y of the P"T*, t$ans.itted to M$& Ma,dan,al A& )l.a, then *hief P$esidential <e,al *ounsel and
*hai$.an of P*//, Stoc8 *e$tificate #o& 131 dated Janua$y 10, 2000, issued in the na.e of the Republic of the Philippines, fo$ 4,;2; P"T* sha$es& Thus, the
*o.p$o.ise +,$ee.ent 3as pa$tly i.ple.ented&
146
+s a $esult of the /o%e$n.ent ha%in, e'p$essly $eco,ni?ed that 6;3 P"T* sha$es belon,ed to +tty& Iluso$io, +tty& Iluso$io and his ,$oup ,ained the .a2o$ity cont$ol of
P"T*&
+pplyin, the $ulin, in /&R& #o& 141;96 and /&R& #o& 141504 to *i%il *ase #o& 04(1049, the RT* 0A$anch 1351 co$$ectly concluded that the #ieto(P*// /$oup, because
it did not ha%e the .a2o$ity cont$ol of P"T*, could not ha%e %alidly con%ened and held the stoc8holde$s7 .eetin, and election of P"T* office$s on +u,ust >, 2004 du$in,
3hich #ieto, J$& and P*// $ep$esentati%e /uy e <eon 3e$e $especti%ely elected as P$esident and *hai$.an: and that the$e could not be a %alid autho$ity fo$ #ieto, J$&
andBo$ <ocsin to %ote the p$o'ies of the ,$oup in the P=I<*"MS+T .eetin,&
Fo$ the sa.e $eason, the P"T* p$o'ies used by #ieto, J$& and <ocsin to elect the.sel%es $especti%ely as *hai$.an and P$esident of P=I<*"MS+T: and the
P=I<*"MS+T p$o'ies used by #ieto, J$& and <ocsin in the +u,ust 31, 2004 P=* elections to elect the.sel%es $especti%ely as P$esident and +ctin, *hai$.an of P=*,
3e$e all in%alid fo$ not ha%in, the suppo$t of the .a2o$ity sha$eholde$s of said co$po$ations&
Dhile it is t$ue that 2udicial decisions should be ,i%en a p$ospecti%e effect, such p$ospecti%ity did not apply to the June 1>, 200> $ulin, in /&R& #o& 141;96 and /&R& #o&
141504 because the $ulin, did not enunciate a ne3 le,al doct$ine o$ chan,e the inte$p$etation of the la3 as to p$e2udice the pa$ties and undo thei$ situations established
unde$ an old doct$ine o$ p$io$ inte$p$etation& Indeed, the $ulin, only affi$.ed the co.p$o.ise a,$ee.ent consu..ated on June 25, 1996 and app$o%ed by the
Sandi,anbayan on June 5, 1995, and acco$din,ly i.ple.ented th$ou,h the cancellation of the sha$es in the na.es of IR* and M<* and thei$ $e,ist$ation in the na.es
of +tty& Iluso$io to the e'tent of 6;3 sha$es, and of the Republic to the e'tent of 4,;2; sha$es& In a .anne$ of spea8in,, the decision of the *ou$t in /&R& #o& 141;96 and
/&R& #o& 141504 p$o.ul,ated on June 1>, 200> decla$ed the co.p$o.ise a,$ee.ent %alid, and such %alidation p$ope$ly $et$oacted to the date of the 2udicial app$o%al of
the co.p$o.ise a,$ee.ent on June 5, 1995&
*onse-uently, althou,h the assailed elections 3e$e conducted by the #ieto(P*// ,$oup on +u,ust 31, 2004 but the $ulin, in /&R& #o& 141;96 and /&R& #o& 141504
3as p$o.ul,ated only on June 1>, 200>, the $ulin, 3as the le,al standa$d by 3hich the issues $aised in *i%il *ase #o& 04(1049 should be $esol%ed&
>&
P$ope$ .ode of appeal in int$a(co$po$ate cases
is by petition fo$ $e%ie3 unde$ Rule 43
In ee Pin, Dee %& <ee =ion, Dee,
14;
the *ou$t has e'pounded that the app$op$iate .ode of appeal fo$ an a,,$ie%ed pa$ty in an int$a(co$po$ate dispute is a petition fo$
$e%ie3 unde$ Rule 43 of the Rules of *ou$t, to 3it4
!e$ily, the fi$st pa$t of Section 4, Rule 1 of the Inte$i. Rules is cate,o$ical& Sa%e fo$ the e'ceptions clea$ly stated the$ein, the p$o%ision enunciates that a decision and
o$de$ issued unde$ the Inte$i. Rules shall be enfo$ceable i..ediately afte$ the $endition the$eof& In o$de$ to assail the decision o$ o$de$, ho3e%e$, the second pa$t of the
p$o%ision spea8s of an appeal o$ petition that needs to be filed by the pa$ty conce$ned& In this appeal o$ petition, a $est$ainin, o$de$ .ust be sou,ht f$o. the appellate
cou$t to en2oin the enfo$ce.ent o$ i.ple.entation of the decision o$ o$de$& Fnless a $est$ainin, o$de$ is so issued, the decision o$ o$de$ $ende$ed unde$ the Inte$i. Rules
shall $e.ain to be i..ediately e'ecuto$y&
"n Septe.be$ 14, 2004, the *ou$t issued a Resolution in +&M& #o& 04(9(0;(S* to $ectify the situation 3he$ein Ela3ye$s and liti,ants a$e in a -uanda$y on ho3 to p$e%ent
unde$ app$op$iate ci$cu.stances the e'ecution of decisions and o$de$s in cases in%ol%in, co$po$ate $ehabilitation and int$a(co$po$ate cont$o%e$sies&E To add$ess the
Eneed to cla$ify the p$ope$ .ode of appeal in Lcases in%ol%in, co$po$ate $ehabilitation and int$a(co$po$ate cont$o%e$siesM in o$de$ to p$e%ent clutte$in, the doc8ets of the
cou$ts 3ith appeals andBo$ petitions fo$ ce$tio$a$i,E the *ou$t the$eby $esol%ed that4
1& +ll decisions and final o$de$s in cases fallin, unde$ the Inte$i. Rules of *o$po$ate Rehabilitation and the Inte$i. Rules of P$ocedu$e /o%e$nin, Int$a(
*o$po$ate *ont$o%e$sies unde$ Republic +ct #o& 5;99 shall be appealable to the *ou$t of +ppeals th$ou,h a petition fo$ $e%ie3 unde$ Rule 43 of the Rules of
*ou$t&
2& The petition fo$ $e%ie3 shall be ta8en 3ithin fifteen 01>1 days f$o. notice of the decision o$ final o$de$ of the Re,ional T$ial *ou$t& Fpon p$ope$ .otion and
the pay.ent of the full a.ount of the le,al fee p$esc$ibed in Rule 141 as a.ended befo$e the e'pi$ation of the $e,le.enta$y pe$iod, the *ou$t of +ppeals .ay
,$ant an additional pe$iod of fifteen 01>1 days 3ithin 3hich to file the petition fo$ $e%ie3& #o fu$the$ e'tension shall be ,$anted e'cept fo$ the .ost co.pellin,
$easons and in no case to e'ceed fifteen 01>1 days& 0).phases ou$s&1
' ' ' '
The issue that needs to be $esol%ed at this point is 3hethe$ o$ not petitione$s pu$sued the co$$ect $e.edy in -uestionin, the RT* ecisions in *i%il *ase #os& Q(04(091,
Q(04(092 and Q(04(093& *o$olla$y to this is 3hethe$ o$ not the petitions fo$ ce$tio$a$i filed by petitione$s could ha%e been t$eated as petitions fo$ $e%ie3 unde$ Rule 43 of
the Rules of *ou$t, in acco$dance 3ith the p$o%isions of the Resolution in +&M& #o& 04(9(0;(S*, such that petitione$s can be conside$ed to ha%e a%ailed the.sel%es of the
p$ope$ $e.edy in assailin, the $ulin,s of the RT*&
De ans3e$ in the ne,ati%e&
The te$. EpetitionE in the thi$d and fou$th pa$a,$aphs of +&M& #o& 04(9(0;(S*, cannot be const$ued as to include a petition fo$ ce$tio$a$i unde$ Rule 6> of the Rules of
*ou$t& The $ationale fo$ this lies in the essential diffe$ence bet3een a petition fo$ $e%ie3 unde$ Rule 43 and a petition fo$ ce$tio$a$i unde$ Rule 6> of the Rules of *ou$t&
' ' ' '
The RT* ecisions in *i%il *ase #os& Q(04(091, Q(04(092 and Q(04(093 a$e final o$de$s that disposed of the 3hole sub2ect .atte$ o$ te$.inated the pa$ticula$
p$oceedin,s o$ action, lea%in, nothin, to be done but to enfo$ce by e'ecution 3hat has been dete$.ined& +s the RT* 3as un-uestionably actin, 3ithin its 2u$isdiction, all
e$$o$s that it .i,ht ha%e co..itted in the e'e$cise of such 2u$isdiction a$e e$$o$s of 2ud,.ent, 3hich a$e $e%ie3able by a ti.ely appeal&
' ' ' '
The *ou$t of +ppeals 012th i%ision1 3as, the$efo$e, co$$ect in dis.issin, the petition fo$ ce$tio$a$i in *+(/&R& SP #o& 5>5;5, 3hich assailed the RT* ecision in *i%il
*ase #o& Q(04(091& ' ' '
145
The $ule p$o%idin, that a petition fo$ $e%ie3 unde$ Rule 43 of the Rules of *ou$t is the p$ope$ .ode of appeal in int$a(co$po$ate cont$o%e$sies, as e.bodied in +& M& #o&
04(9(0;(S*, has been in effect since "ctobe$ 1>, 2004& =ence, the filin, by P"T* and P=* 0#ieto /$oup1 of the petition fo$ ce$tio$a$i on Ma$ch 21, 200; 0*&+&(/&R& SP
#o& 953991 3as ine'cusably i.p$ope$ and ineffectual& Ay %i$tue of its bein, an e't$ao$dina$y $e.edy, ce$tio$a$i could neithe$ $eplace no$ substitute an ade-uate $e.edy
in the o$dina$y cou$se of la3, li8e appeal in due cou$se&
149
Indeed, the appeal unde$ Rule 43 of the Rules of *ou$t 3ould ha%e been ade-uate to $e%ie3 and co$$ect e%en
the ,$a%e abuse of disc$etion i.puted to the RT*&
1>0
+s a conse-uence of the i.p$op$iety and ineffectuality of the $e.edy chosen by P"T* and P=* 0#ieto /$oup1, the TR" and the DPI initially issued by the *+ in *&+&(
/&R& SP #o& 95399 did not p$e%ent the i..ediately e'ecuto$y cha$acte$ of the decision in *i%il *ase #o& 04(1049&
6&
Petition fo$ conte.pt a,ainst Aildne$ had no basis
The filin, by Aildne$ and he$ counsel +tty& Man?anal of the co.plaint fo$ pe$2u$y a,ainst <ocsin and his counsel +tty& <abastilla in the "ffice of the *ity P$osecuto$ of
Manila did not a.ount to unla3ful inte$fe$ence 3ith the p$ocesses of the *+& The$e is no denyin, that Aildne$ 3as 3ithin he$ $i,ht as a pa$ty in inte$est in the p$oceedin,s
then pendin, in the *+ to b$in, the pe$2u$y cha$,e a,ainst <ocsin and his counsel fo$ thei$ failu$e to a%e$ in the ce$tification a,ainst fo$u. shoppin, attached to the
petition fo$ ce$tio$a$i in *&+&(/&R& SP #o& 95399 of the pendency of anothe$ petition in *&+&(/&R& SP #o& 9505; despite thei$ 8no3led,e the$eof& =e$ co.plaint fo$ pe$2u$y
could $eally be dealt 3ith by the "ffice of the *ity P$osecuto$ of Manila independently f$o. any action the *+ 3ould ta8e on the issue of fo$u. shoppin,& +s such, the
filin, of the co.plaint did not inte$fe$e 3ith the *+7s autho$ity o%e$ the petition in *&+&(/&R& SP #o& 95399&
In this $e,a$d, 3e dee. to be app$op$iate to $eite$ate 3hat the *ou$t said on the natu$e of conte.pt of cou$t in <o$en?o Shippin, *o$po$ation %& ist$ibution Mana,e.ent
+ssociation of the Philippines,
1>1
%i?4
Misbeha%io$ .eans so.ethin, .o$e than ad%e$se co..ent o$ dis$espect& The$e is no -uestion that in conte.pt the intent ,oes to the ,$a%a.en of the offense& Thus,
the ,ood faith, o$ lac8 of it, of the alle,ed conte.no$ should be conside$ed& Dhe$e the act co.plained of is a.bi,uous o$ does not clea$ly sho3 on its face that it is
conte.pt, and is one 3hich, if the pa$ty is actin, in ,ood faith, is 3ithin his $i,hts, the p$esence o$ absence of a contu.acious intent is, in so.e instances, held to be
dete$.inati%e of its cha$acte$& + pe$son should not be conde.ned fo$ conte.pt 3he$e he contends fo$ 3hat he belie%es to be $i,ht and in ,ood faith institutes
p$oceedin,s fo$ the pu$pose, ho3e%e$ e$$oneous .ay be his conclusion as to his $i,hts& To constitute conte.pt, the act .ust be done 3illfully and fo$ an ille,iti.ate o$
i.p$ope$ pu$pose&
#onetheless, the *ou$t states that the po3e$ to punish fo$ conte.pt is inhe$ent in all cou$ts, and is essential to the p$ese$%ation of o$de$ in 2udicial p$oceedin,s and to the
enfo$ce.ent of 2ud,.ents, o$de$s, and .andates of the cou$t, and ulti.ately, to the due ad.inist$ation of 2ustice& Aut such po3e$ should be e'e$cised on the
p$ese$%ati%e, not on the %indicti%e, p$inciple& "nly in cases of clea$ and contu.acious $efusal to obey should the po3e$ be e'e$cised& Such po3e$, bein, d$astic and
e't$ao$dina$y in its natu$e, should not be $eso$ted to unless necessa$y in the inte$est of 2ustice&
1>2
;&
Aildne$ /$oup entitled to in2uncti%e $elief
*once$nin, the p$op$iety of the issuance of the DPI to en2oin API f$o. lettin, the <ocsin /$oup 3ithd$a3 funds o$ t$ansact 3ith API on P=*7s deposits, the *ou$t finds
that the Aildne$ /$oup as the applicant had a $i,ht in esse to be p$otected by the in2uncti%e $elief& + $i,ht that is in esse is a clea$ and un.ista8able $i,ht to be p$otected,
and is one founded on o$ ,$anted by la3 o$ is enfo$ceable as a .atte$ of la3&
1>3
The Aildne$ /$oup, because of the indubitability of its standin, as a pa$ty in inte$est,
sho3ed a clea$ and un.ista8able $i,ht to be p$otected&
In ,$antin, the Aildne$ /$oup7s application fo$ the DPI, the RT* 0A$anch 621 e.phasi?ed the peculia$ities of the case& +ppa$ently, the Aildne$ /$oup $elied on the fact
that thei$ election to the P=* Aoa$d of i$ecto$s 3as i.ple.ented and e'ecuted e%en p$io$ to the DPI issued by the *+ to stop the RT* 0A$anch 1351 f$o. i.ple.entin,
its decision in *i%il *ase #o& 04(1049& The $i,ht that the Aildne$ /$oup $elied on in see8in, the e'ecution of the decision 3as enfo$ceable as a .atte$ of la3, fo$ it
e.anated f$o. the %alidly issued decision that 3as i..ediately e'ecuto$y unde$ the pe$tinent $ule& "n the othe$ hand, the TR" and DPI the *+ issued in *&+&(/& R& SP
#o& 95399 could not and did not ha%e any $est$ainin, effect on the i..ediately e'ecuto$y natu$e of the decision $ende$ed in *i%il *ase #o& 04(1049, because the .atte$
had been b$ou,ht to the *+ th$ou,h the 3$on, $e.edy&
*onside$in, that the Aildne$ /$oup7s clea$ $i,ht to an in2uncti%e $elief 3as established, coupled 3ith the affi$.ance of the consolidated decision of the *+ upholdin, the
%alidity of the July 25, 2004 election of the Aildne$ /$oup as i$ecto$s and "ffice$s of P=*, the decision p$o.ul,ated in *&+&(/&R& SP #o& 10243; to the effect that
Aildne$7s standin, as a pa$ty(ininte$est 3as unclea$, and that she failed to sho3 a clea$ and un.ista8able $i,ht to be p$otected by the 3$it of in2unction, lost its ,$ound&
+cco$din,ly, the $e%e$sal of the decision p$o.ul,ated in *&+&(/&R& SP #o& 10243;, and the $einstate.ent of the DPI issued a,ainst API by the RT* 0A$anch 621 in *i%il
*ase #o& 0;(540 a$e in o$de$&
5&
Sup$e.e *ou$t, not bein, a t$ie$ of facts,
3ill not $ee'a.ine the e%idence
The insistence by P"T* and P=* 0#ieto /$oup1 that the RT*7s decision in *i%il *ase #o& 04(1049 3as cont$a$y to the facts and the e%idence lac8s .e$it&
The *ou$t is not a t$ie$ of facts, and thus should not $ee'a.ine the e%idence in o$de$ to dete$.ine 3hethe$ the facts 3e$e as P"T* and P=* 0#ieto /$oup1 no3 insist
they 3e$e& The *ou$t .ust $espect the findin,s of the *+ sustainin, the factual findin,s of the RT* in *i%il *ase #o& 04(1049& +s a $ule, the findin,s of fact by the *+ a$e
not $e%ie3ed on appeal, but a$e bindin, and conclusi%e&
1>4
The $eason fo$ this has been 3ell stated in J&R& Alanco %& Quasha4
1>>
To be,in 3ith, this *ou$t is not a t$ie$ of facts& It is not its function to e'a.ine and dete$.ine the 3ei,ht of the e%idence suppo$tin, the assailed decision& In Philippine
+i$lines, Inc& %s& *ou$t of +ppeals 02;> S*R+ 621 L199;M1, the *ou$t held that factual findin,s of the *ou$t of +ppeals 3hich a$e suppo$ted by substantial e%idence a$e
bindin,, final and conclusi%e upon the Sup$e.e *ou$t& So also, 3ell(established is the $ule that Efactual findin,s of the *ou$t of +ppeals a$e conclusi%e on the pa$ties and
ca$$y e%en .o$e 3ei,ht 3hen the said cou$t affi$.s the factual findin,s of the t$ial cou$t&E Mo$eo%e$, 3ell ent$enched is the p$e%ailin, 2u$isp$udence that only e$$o$s of la3
and not of facts a$e $e%ie3able by this *ou$t in a petition fo$ $e%ie3 on ce$tio$a$i unde$ Rule 4> of the Re%ised Rules of *ou$t, 3hich applies 3ith ,$eate$ fo$ce to the
Petition unde$ conside$ation because the factual findin,s by the *ou$t of +ppeals a$e in full a,$ee.ent 3ith 3hat the t$ial cou$t found&1wphi1
De affi$., the$efo$e, the appealed consolidated decision p$o.ul,ated in *&+&(/&R& SP #o& 10122>, *&+&(/&R& SP #o& 9509; and *&+&(/&R& SP #o& 95399, and dis.iss
the petitions of the <ocsinB#ieto(P*// /$oup filed in /&R& #o& 154;12(14 and /&R& #o& 156066&
D=)R)F"R), the *ou$t )#I)S the petitions fo$ $e%ie3 on ce$tio$a$i in /&R& #o& 154622, /&R& #o& 154;12(14, and /&R& #o& 156066: +FFIRMS the $esolution
p$o.ul,ated on +u,ust 1>, 200; by the Sandi,anbayan in *i%il *ase #o& 0195 and the consolidated decision p$o.ul,ated on Septe.be$ 30, 2005 in *&+&(/&R& SP #o&
10122>, *&+&(/&R& SP #o& 9509; and *&+&(/&R& SP #o& 95399: /R+#TS the petition fo$ $e%ie3 on ce$tio$a$i in /&R& #o& 156>90, and, acco$din,ly, +##F<S and S)TS
+SI) the decision p$o.ul,ated on July 16, 2005 in *&+&(/&R& SP #o& 10243;: +FFIRMS the o$de$ issued on ece.be$ 13, 200; by the Re,ional T$ial *ou$t, A$anch
62, in Ma8ati *ity: and R)I#ST+T)S the 3$it of in2unction issued on ece.be$ 1;, 200; a,ainst Aan8 of Philippine Islands&
The *ou$t IR)*TS the <ocsinB#ieto(P*// /$oup to $ende$ an accountin, of all the funds and othe$ assets $ecei%ed f$o. the P=I<IPPI#) "!)RS)+S
T)<)*"MMF#I*+TI"#S *"RP"R+TI"#, P=I<IPPI#) ="<I#/S *"RP"R+TI"# and P=I<IPPI#) *"MMF#I*+TI"#S S+T)<<IT) *"RP"R+TI"# since
Septe.be$ 1, 2004, and to $etu$n such funds to the $especti%e co$po$ations 3ithin thi$ty days f$o. the finality of this decision&
*osts of suit to be paid by the /$oup of )n$i-ue <& <ocsin and Manuel =& #ieto, J$&
S" "R)R)&
LUCAS P. $ERSAMIN
+ssociate Justice
D) *"#*FR4
MARIA LOUR"ES P. A. SERENO
*hief Justice
ARTURO ". $RIONS
+ssociate Justice
MARTIN S. VILLARAMA, JR.
+ssociate Justice
$IENVENI"O L. RE%ES
+ssociate Justice
* ) R T I F I * + T I " #
Pu$suant to Section 13, +$ticle !III of the *onstitution, I ce$tify that the conclusions in the abo%e ecision had been $eached in consultation befo$e the case 3as assi,ned
to the 3$ite$ of the opinion of the *ou$tIs i%ision&
MARIA LOUR"ES P. A. SERENO
*hief Justice
#oo-0o-.(
1
Rollo 0/&R& #o& 1560661, p& 90&
2
Id& at 90(91&
3
Id& at 91&
4
Id&
>
Id& at 91(92&
6
Id& at 92&
;
Id& at 92(93&
5
Id& at 93&
9
Id& at 93(94&
10
Id&
11
Id& at 94(9>&
12
Id& at 9>&
13
Id& at 9;
14
Id& at 95&
1>
Id&
16
Id&
1;
Id& at 99&
15
Id&
19
Id&
20
Id&
21
Id& at 100&
22
Id&
23
Id&
24
Id& at 100(101&
2>
Id& at 101&
26
+pp$o%ed on July 19, 2000&
2;
Rollo 0/&R& #o& 1560661, p& 101&
25
Id&
29
Id& at 102&
30
Id&
31
Id&
32
Id& at 103(104&
33
Id& at 104&
34
Id&
3>
Id&
36
Id& at 10>&
3;
Id& at 106&
35
Id&
39
Id&
40
Id&
41
Id& at 10;
42
Id& at 10;(109&
43
Id& at 109(110&
44
Id& at 110(111&
4>
Id& at 111(112&
46
Id& at 112(113&
4;
Id& at 113(114&
45
Id& at 114&
49
Id&
>0
Id& at 114(11>&
>1
Id& at 11>(116&
>2
Id& at 116(115&
>3
Id& at 115&
>4
Id& at 115(119&
>>
Rollo 0/&R& #o& 1546221, pp& 2;;(2;5&
>6
Id& at 2;9(252&
>;
Rollo 0/&R& #o& 1560661, p& 120&
>5
Id& at 120(121&
>9
Id& at 121(122&
60
Id& at 122&
61
Id& at 123&
62
Id& at 123(124&
63
Id& at 124&
64
Id& at 150(155: penned by +ssociate Justice *on$ado M& !as-ue?, J$& 0late$ P$esidin, Justice, but since $eti$ed1, 3ith the concu$$ence of +ssociate Justice
Rebecca e /uia(Sal%ado$ and +ssociate Justice +u$o$a Santia,o <a,.an 0$eti$ed1&
6>
Id& at 124&
66
Id& at 124(12>&
6;
Id& at 12>(126&
65
Id& at 126&
69
Id&
;0
Id&
;1
Id& at 12;&
;2
Id&
;3
Id& at 130&
;4
Id& at 130(131&
;>
Id& at 131&
;6
Id&
;;
Id& at 132&
;5
Id& at 132(133&
;9
Id& at 133&
50
Id&
51
Id& at 133(134&
52
Id& at 134&
53
Id&
54
Id& at 13>&
5>
Id&
56
Id&
5;
Id& at 136&
55
Id&
59
Id& at 13;(135&
90
Id& at 135&
91
Id&
92
Id& at 135(139&
93
Id& at 139
94
Id& at 139(140&
9>
Id& at 140&
96
Id& at 140(142&
9;
Id& at 142(143&
95
Id& at 144&
99
Id& at 144(14>&
100
Rollo 0/&R& #o& 156>901, pp& >2(6>&
101
Id& at 6;(;0&
102
Rollo 0/&R& #o& 1560661, pp& 5;(1;>: penned by +ssociate Justice Te$esita y(<iacco Flo$es 0$eti$ed1, and concu$$ed in by +ssociate Justice Po$tia +liGo(
=o$.achuelos 0$eti$ed1 and +ssociate Justice =a8i. S& +bdul3ahid&
103
Id& at 1;>&
104
Id& at 1;;(1;9&
10>
Rollo 0/&R& #o& 1546221, p& 2;&
106
Rollo 0/&R& #os& 154;12(141, p& 30&
10;
Id& at 3;&
105
Id& at 39&
109
Id& at 41&
110
Rollo 0/&R& #o& 156>901, p& 20&
111
Rollo 0/&R& #o& 1560661, pp& 41(42&
112
Rollo 0/&R& #o& 154;12(141, p& 30&
113
Id& at 32&
114
Id& at 3;&
11>
Id& at 39&
116
Id& at 41&
11;
Id& at 490&
115
Id& at 492&
119
Id& at 493&
120
Rollo 0/&R& #o& 1546221, p& 2;&
121
Id& at 29&
122
!icto$ +f$ica, actin, p$o se, sub.itted a *o..ent 3ith the .anifestation that the *o..ent of the othe$ $espondents 3as the .o$e app$op$iate pleadin,, id&
at 103(10;&
123
Rollo 0/&R& #o& 1546221, pp& 145(1>1&
124
Rollo 0/&R& #o& 156>901, p& 31&
12>
Id& at 466&
126
Rollo 0/&R& #o& 1560661, p& 42&
12;
Id& at 49&
125
Id& at >9(60&
129
Id& at 62(63&
130
Id& at >>;&
131
Id&
132
Id& at >60&
133
Id& at >64(>6>&
134
Id& at >6>&
13>
Cu2uico %& Quia.bao, /&R& #o& 165639, Janua$y 29, 200;, >13 S*R+ 243, 2>4&
136
Section >, P 902(+& See also Section 1, Rule 1 of the Inte$i. Rules of P$ocedu$e /o%e$nin, Int$a(*o$po$ate *ont$o%e$sies unde$ R&+& #o& 5;99&
13;
Machado %& /atdula, /&R& #o& 1>625;, Feb$ua$y 16, 2010, 612 S*R+ >46, >>9&
135
Section 2& The P$esidential *o..ission on /ood /o%e$n.ent shall file all such cases, 3hethe$ ci%il o$ c$i.inal, 3ith the Sandi,anbayan, 3hich shall ha%e
e'clusi%e and o$i,inal 2u$isdiction the$eof&
139
/&R& #o& 5>339, +u,ust 11, 1959, 1;6 S*R+ 44;, 461(462&
140
Aold e.phases 3e$e supplied&
141
/&R& #o& 5>>;6, June 5, 1990, 156 S*R+ 44;, 4>3 0italici?ed po$tions a$e pa$t of the o$i,inal te't, but bold e.phases a$e supplied1&
142
Alac87s <a3 ictiona$y, Fifth )dition&
143
*onfede$ation of Su,a$ P$oduce$s +ssociation, Inc& %& epa$t.ent of +,$a$ian Refo$. 0+R1, /&R& #o& 169>14, Ma$ch 30, 200;, >19 S*R+ >52, 615&
144
Id& at 615(619&
14>
Ty %& Aanco Filipino Sa%in,s T Mo$t,a,e Aan8, /&R& #o& 144;0>, #o%e.be$ 1>, 200>, 4;> S*R+ 6>, ;>(;6&
146
Republic %& Sandi,anbayan, /&R& #o& 141;96 and /&R& #o& 141504, June 1>, 2006, 460 S*R+ 146, 16;(169 0bold e.phases a$e pa$t of the o$i,inal te't1&
14;
/&R& #o& 16934>, +u,ust 2>, 2010, 629 S*R+ 14>&
145
Id& at 165(1;3 0bold e.phases a$e pa$t of the o$i,inal te't1&
149
Section 1, Rule 6>, Rules of *ou$t&
1>0
=ei$s of Spouses Teofilo M& Rete$ta and )lisa Rete$ta %& Spouses <o$en?o Mo$es and !i$,inia <ope?, /&R& #o& 1>9941, +u,ust 1;, 2011, 6>> S*R+ >50,
>94(>9>
1>1
/&R& #o& 1>>549, +u,ust 31, 2011, 6>6 S*R+ 331, 349(3>0&
1>2
Aan8 of the Philippines Island %& *alan?a, /&R& #o& 150699, "ctobe$ 13, 2010, 633 S*R+ 156, 193&
1>3
To.a3is %& Tabao(*audon,, /&R& #o& 166>4;, Septe.be$ 12, 200;, >33 S*R+ 65, 5>: <i. %& API +,$icultu$al e%elop.ent Aan8, /& R& #o& 1;9230:
Ma$ch 9, 2010, 614 S*R+ 696, ;02&
1>4
D(Red *onst$uction and e%elop.ent *o$p& %& *ou$t of +ppeals, /&R& #o& 122645, +u,ust 1;, 2000, 335 S*R+ 341, 34>&
1>>
/&R& #o& 133145, #o%e.be$ 1;, 1999, 315 S*R+ 3;3, 352&
The <a3phil P$o2ect ( +$ellano <a3 Foundation
No. 9
SECOND DIVISION
G.R. No. 176339 : January 10, 2011
DO-ALL METALS INDSTRIES, IN!., S"S. DOMINGO LIM an# LEL$ %NG LIM, Petitioners, v.SE!RIT$ &AN%
!OR"., TITOLAIDO E. "A$ONGA$ONG, E'$LENE !. SISON, "(IL. INDSTRIAL SE!RIT$ AGEN!$ !OR". an#
GIL SILOS, Respondents.
D E ! I S I O N
A&AD, J.:
This case is about the propriety of awarding daages based on c!ais ebodied in the p!aintiff"s supp!eenta! cop!aint fi!ed without
prior payent of the corresponding fi!ing fees.
T)* +a,-. an# -)* !a.*
#ro $99% to $99&, Dragon 'ady Industries, Inc., owned by petitioner spouses Doingo 'i and 'e!y (ung 'i )the 'is* too+ out
!oans fro respondent Security ,an+ Corporation )the ,an+* that tota!ed - 9., /0/, &&%./0. 1nab!e to pay the !oans on tie, the 'is
assigned soe of their rea! properties to the ,an+ to secure the sae, inc!uding a bui!ding and the !ot on which it stands )the property*,
!ocated at 2. de 'eon St., Santo!an, -asig City.
$
cra!awred!aw
In $993 the ,an+ offered to !ease the property to the 'is through petitioner Do45!! 2eta!s Industries, Inc. )D2I* priari!y for
business a!though the 'is were to use part of the property as their residence. D2I and the ,an+ e6ecuted a two4year !ease contract
fro October $, $993 to Septeber 78, .888 but the ,an+ retained the right to pre4terinate the !ease. The contract a!so pro9ided that,
shou!d the ,an+ decide to se!! the property, D2I sha!! ha9e the right of first refusa!.
On Deceber 7, $999, before the !ease was up, the ,an+ ga9e notice to D2I that it was pre4terinating the !ease on Deceber 7$,
$999. :anting to e6ercise its right of first refusa!, D2I tried to negotiate with the ,an+ the ters of its purchase. D2I offered to pay
the ,an+ - 3 i!!ion for the property but the !atter re;ected the offer, suggesting - $0 i!!ion instead. D2I ade a second offer of- $8
i!!ion but the ,an+ dec!ined the sae.
:hi!e the negotiations were on going, the 'is c!aied that they continued to use the property in their business. ,ut the ,an+ posted
at the p!ace pri9ate security guards fro -hi!ippine Industria! Security 5gency )-IS5*. The 'is a!so c!aied that on se9era!
occasions in .888, the guards, on instructions of the ,an+ representati9es Tito!aido -ayongayong and E9y!ene Sison, pad!oc+ed the
entrances to the p!ace and barred the 'is as we!! as D2I"s ep!oyees fro entering the property. One of the guards e9en pointed his
gun at one ep!oyee and shots were fired. ,ecause of this, D2I was unab!e to c!ose se9era! pro;ects and contracts with prospecti9e
c!ients. #urther, the 'is a!!eged that they were unab!e to retrie9e assorted furniture, e<uipent, and persona! ites !eft at the
property.
The 'is e9entua!!y fi!ed a cop!aint with the =egiona! Tria! Court )=TC* of -asig City for daages with prayer for the issuance of
a teporary restraining order )T=O* or pre!iinary in;unction against the ,an+ and its co4defendants -ayongayong, Sison, -IS5, and
>i! Si!os.
.
cra!aw 5nswering the cop!aint, the ,an+ pointed out that the !ease contract a!!owed it to se!! the property at any tie
pro9ided on!y that it ga9e D2I the right of first refusa!. D2I had se9en days fro notice to e6ercise its option. On Septeber $8,
$999 the ,an+ ga9e notice to D2I that it intended to se!! the property to a third party. D2I as+ed for an e6tension of its option to buy
and the ,an+ granted it. ,ut the parties cou!d not agree on a purchase price. The ,an+ re<uired D2I to 9acate and turno9er the
property but it fai!ed to do so. 5s a resu!t, the ,an+"s buyer bac+ed4out of the sa!e. Despite what happened, the ,an+ and D2I
continued negotiations for the purchase of the !eased preises but they cae to no agreeent.
The ,an+ denied, on the other hand, that its guards harassed D2I and the 'is. To protect its property, the ,an+ began posting
guards at the bui!ding e9en before it !eased the sae to D2I. Indeed, this arrangeent benefited both parties. The ,an+ a!!eged that in
October of .888, when the parties cou!d not coe to an agreeent regarding the purchase of the property, D2I 9acated the sae and
peacefu!!y turned o9er possession to the ,an+.
The ,an+ offered no ob;ection to the issuance of a T=O since it c!aied that it ne9er pre9ented D2I or its ep!oyees fro entering or
!ea9ing the bui!ding. #or this reason, the =TC directed the ,an+ to a!!ow D2I and the 'is to enter the bui!ding and get the things
they !eft there. The !atter c!aied, howe9er, that on entering the bui!ding, they were unab!e to find the o9ab!e properties they !eft
there. In a supp!eenta! cop!aint, D2I and the 'is a!!eged that the ,an+ surreptitious!y too+ such properties, resu!ting in
additiona! actua! daages to the of o9er - .& i!!ion.
The =TC set the pre4tria! in the case for Deceber /, .88$. On that date, howe9er, counse! for the ,an+ o9ed to reset the
proceeding. The court denied the otion and a!!owed D2I and the 'is to present their e9idence ex parte. The court e9entua!!y
reconsidered its order but on!y after the p!aintiffs had a!ready presented their e9idence and were about to rest their case. The =TC
dec!ined to reca!! the p!aintiffs" witnesses for cross4 e6aination but a!!owed the ,an+ to present its e9idence.
7
cra!awThis propted
the ,an+ to see+ re!ief fro the Court of 5ppea!s )C5* and e9entua!!y fro this Court but to no a9ai!.
/
cra!awred!aw
During its turn at the tria!, the ,an+ got to present on!y defendant -ayongayong, a ban+ officer. #or repeated!y cance!ing the hearings
and incurring de!ays, the =TC dec!ared the ,an+ to ha9e forfeited its right to present additiona! e9idence and deeed the case
subitted for decision.
On Septeber 78, .88/ the =TC rendered a decision in fa9or of D2I and the 'is. It ordered the ,an+ to pay the p!aintiffs - .&, 9&/,
0%/.88 as actua! daages, - 088, 888.88 as ora! daages, -088, 888 as e6ep!ary daages, and - $88, 888.88 as attorney"s fees.
,ut the court abso!9ed defendants -ayongayong, Sison, Si!os and -IS5 of any !iabi!ity.
The ,an+ o9ed for reconsideration of the decision, <uestioning aong other things the =TC"s authority to grant daages
considering p!aintiffs" fai!ure to pay the fi!ing fees on their supp!eenta! cop!aint. The =TC denied the otion. On appea! to the C5,
the !atter found for the ,an+, re9ersed the =TC decision, and disissed the cop!aint as we!! as the counterc!ais.
0
cra!aw D2I and
the 'is fi!ed a otion for reconsideration but the C5 denied the sae, hence this petition.
T)* I..u*. "r*.*n-*#
The issues presented in this case are? chanrob$es9irtwa!!aw!ibrary
$. :hether or not the =TC ac<uired ;urisdiction to hear and ad;udicate p!aintiff"s supp!eenta! cop!aint against the ,an+ considering
their fai!ure to pay the fi!ing fees on the aounts of daages they c!ai in it@ chanrob!es9irtua!aw!ibrary
.. :hether or not the ,an+ is !iab!e for the intiidation and harassent coitted against D2I and its representati9es@ and
7. :hether or not the ,an+ is !iab!e to D2I and the 'is for the achineries, e<uipent, and other properties they a!!eged!y !ost after
they were barred fro the property.
T)* !our-/. Ru01n2.
On*. On the issue of ;urisdiction, respondent ,an+ argues that p!aintiffs" fai!ure to pay the fi!ing fees on their supp!eenta! cop!aint
is fata! to their action.
,ut what the p!aintiffs fai!ed to pay was ere!y the fi!ing fees for their Supp!eenta! Cop!aint. The =TC ac<uired ;urisdiction o9er
p!aintiffs" action fro the oent they fi!ed their origina! cop!aint accopanied by the payent of the fi!ing fees due on the sae.
The p!aintiffs" non4payent of the additiona! fi!ing fees due on their additiona! c!ais did not di9est the =TC of the ;urisdiction it
a!ready had o9er the case.
%
cra!awred!aw
T3o. 5s to the c!ai that ,an+"s representati9es and retained guards harassed and intiidated D2I"s ep!oyees and the 'is, the
=TC found ap!e proof of such wrongdoings and according!y awarded daages to the p!aintiffs. ,ut the C5 disagreed, discounting
the testiony of the po!ice officers regarding their in9estigations of the incidents since such officers were not present when they
happened. The C5 ay be correct in a way but the p!aintiffs presented eyewitnesses who testified out of persona! +now!edge. The
po!ice officers testified ere!y to point out that there had been troub!e at the p!ace and their in9estigations yie!ded their findings.
The ,an+ be!itt!es the testionies of the petitioners" witnesses for ha9ing been presented ex partebefore the c!er+ of court. ,ut the ex
parte hearing, ha9ing been proper!y authoriAed, cannot be assai!ed as !ess credib!e. It was the ,an+"s fau!t that it was unab!e to attend
the hearing. It cannot profit fro its !ac+ of di!igence.
Doingo 'i and soe ep!oyees of D2I testified regarding the ,an+ guards" unitigated use of their superior strength and
firepower. Their testionies were ne9er refuted. -o!ice Inspector -risci!!o de!a -aA testified that he responded to se9era! cop!aints
regarding shooting incidents at the !eased preises and on one occasion, he found Doingo 'i was !oc+ed in the bui!ding. :hen he
as+ed why 'i had been !oc+ed in, a ,an+ representati9e to!d hi that they had instructions to pre9ent anyone fro ta+ing any
property out of the preises. It was on!y after De!a -aA ta!+ed to the ,an+ representati9e that they !et 'i out.
&
cra!awred!aw
-ayongayong, the ,an+"s so!e witness, denied charges of harassent against the ,an+"s representati9es and the guards. ,ut his denia!
cae ere!y fro reports re!ayed to hi. They were not based on persona! +now!edge.
:hi!e the !ease ay ha9e a!ready !apsed, the ,an+ had no business harassing and intiidating the 'is and their ep!oyees. The
=TC was therefore correct in ad;udging ora! daages, e6ep!ary daages, and attorney"s fees against the ,an+ for the acts of their
representati9es and bui!ding guards.
T)r**. 5s to the daages that p!aintiffs c!ai under their supp!eenta! cop!aint, their stand is that the =TC coitted no error in
aditting the cop!aint e9en if they had not paid the fi!ing fees due on it since such fees constituted a !ien anyway on the ;udgent
award. ,ut this after4;udgent !ien, which ip!ies that payent depends on a successfu! e6ecution of the ;udgent, app!ies to cases
where the fi!ing fees were incorrect!y assessed or paid or where the court has discretion to fi6 the aount of the award.
3
cra!aw None
of these circustances obtain in this case.
Bere, the supp!eenta! cop!aint specified fro the beginning the actua! daages that the p!aintiffs sought against the ,an+. Sti!!
p!aintiffs paid no fi!ing fees on the sae. 5nd, whi!e petitioners c!ai that they were wi!!ing to pay the additiona! fees, they ga9e no
reason for their oission nor offered to pay the sae. They ere!y said that they did not yet pay the fees because the =TC had not
assessed the for it. ,ut a supp!eenta! cop!aint is !i+e any cop!aint and the ru!e is that the fi!ing fees due on a cop!aint need to
be paid upon its fi!ing.
9
cra!aw The ru!es do not re<uire the court to a+e specia! assessents in cases of supp!eenta! cop!aints.
To aggra9ate p!aintiffs" oission, a!though the ,an+ brought up the <uestion of their fai!ure to pay additiona! fi!ing fees in its otion
for reconsideration, p!aintiffs ade no effort to a+e at !east a !ate payent before the case cou!d be subitted for decision, assuing
of course that the prescription of their action had not then set it in. C!ear!y, p!aintiffs ha9e no e6cuse for their continuous fai!ure to pay
the fees they owed the court. Conse<uent!y, the tria! court shou!d ha9e treated their Supp!eenta! Cop!aint as not fi!ed.
-!aintiffs of course point out that the ,an+ itse!f raised the issue of non4payent of additiona! fi!ing fees on!y after the =TC had
rendered its decision in the case. The ip!ication is that the ,an+ shou!d be deeed to ha9e wai9ed its ob;ection to such oission. ,ut
it is not for a party to the case or e9en for the tria! court to wai9e the payent of the additiona! fi!ing fees due on the supp!eenta!
cop!aint. On!y the Supree Court can grant e6eptions to the payent of the fees due the courts and these e6eptions are
ebodied in its ru!es.
,esides, as correct!y pointed out by the C5, p!aintiffs had the burden of pro9ing that the o9ab!e properties in <uestion had reained
in the preises and that the ban+ was responsib!e for their !oss. The on!y e9idence offered to pro9e the !oss was Doingo 'i"s
testiony and soe undated and unsigned in9entories. These were se!f4ser9ing and uncorroborated.
4(ERE+ORE , the Court "ARTIALL$ GRANTS the petition and REINSTATES with odification the decision of the =egiona!
Tria! Court of -asig City in Ci9i! Case %3$3/. The Court DIRE!TS respondent Security ,an+ Corporation to pay petitioners D2I
and spouses Doingo and 'e!y (ung 'i daages in the fo!!owing aounts? - 088, 888.88 as ora! daages, - 088, 888.88 as
e6ep!ary daages, and - $88, 888.88 for attorney"s fees. The Court DELETES the award of actua! daages of - .&, 9&/, 0%/.88.
SO ORDERED.
RO&ERTO A. A&AD
Associate Justice
4E !ON!R:
!AR"IO, J., !)a1r5*r.on, NA!(RA, "ERALTA, an# &ERSAMIN, 6,ra0a3, JJ.
cra!aw Endnotes:
Ccra!aw Designated as additiona! eber in !ieu of 5ssociate Dustice Dose Catra! 2endoAa, per raff!e dated Danuary $8, .8$$.
$
cra!aw Co9ered by Transfer Certificate of Tit!e &9%87.
.
cra!aw Doc+eted as Ci9i! Case %3$3/.
7
cra!aw Order of the =TC dated 2ay $8, .88. and =eso!ution of the =TC dated 5ugust 0, .88.@ records, Vo!ue $, pp. 7$&47$3 and
7/847/$, respecti9e!y.
/
cra!aw The appea!s were doc+eted as C54>.=. S- &70.8 and >.=. $%$3.3, respecti9e!y.
0
cra!aw In the decision of the Court of 5ppea!s dated October $8, .88% in C54>.=. CV 30%%&, penned by 5ssociate Dustice
Norandie ,. -iAarro and concurred in by 5ssociate Dustices 5e!ita >. To!entino and Dose Catra! 2endoAa, now a eber of this
Court@ C5 rollo, pp. $0$4$%3.
%
cra!aw See PNOC Shipping and Transport Corporation v. Court of Appeals, 703 -hi!. 73, %. )$993*.
&
cra!aw TSN, Danuary $3, .88., pp. 74/.
3
cra!aw =u!es of Court, =u!e $/$, Section . )#ees in 'ien*.
9
cra!aw Section $ )-ayent of #ees* in re!ation to Section & )#ees co!!ectib!e by the C!er+s of =egiona! Tria! Courts for fi!ing an
action*.
No. $$
Today is Tuesday, June 24, 2014
Republic of the Philippines
SUPREME COURT
Manila
S)*"# I!ISI"#
G.R. No. 185121 July 31, 2013
AMELIA GARCIA*6UIA7ON, JENNETH 6UIA7ON 80/ MARIA JENNI#ER 6UIA7ON, Petitione$s,
MA. LOUR"ES $ELEN, 9o, 80/ 10 3.:8l9 o9 MARIA LOUR"ES ELISE 6UIA7ON, Respondent&
) * I S I " #
J.:
This is a Petition fo$ Re%ie3 on *e$tio$a$i filed pu$suant to Rule 4> of the Re%ised Rules of *ou$t, p$i.a$ily assailin, the 25 #o%e.be$ 2005 ecision $ende$ed by the #inth i%ision of the *ou$t
of +ppeals in *+(/&R& *! #o& 55>59,
1
the dec$etal po$tion of 3hich states4
D=)R)F"R), p$e.ises conside$ed, the appeal is he$eby )#I)& The assailed ecision dated Ma$ch 11, 200>, and the "$de$ dated Ma$ch 24, 2006 of the Re,ional T$ial *ou$t, A$anch 2;>,
<as PiGas *ity a$e +FFIRM) in toto&
2
The Facts
This case sta$ted as a Petition fo$ <ette$s of +d.inist$ation of the )state of )liseo Quia?on 0)liseo1, filed by he$ein $espondents 3ho a$e )liseo7s co..on(la3 3ife and dau,hte$& The petition
3as opposed by he$ein petitione$s +.elia /a$cia(Quai?on 0+.elia1 to 3ho. )liseo 3as .a$$ied& +.elia 3as 2oined by he$ child$en, Jenneth Quia?on 0Jenneth1 and Ma$ia Jennife$ Quia?on
0Jennife$1&
)liseo died intestate on 12 ece.be$ 1992&
"n 12 Septe.be$ 1994, Ma$ia <ou$des )lise Quia?on 0)lise1, $ep$esented by he$ .othe$, Ma& <ou$des Aelen 0<ou$des1, filed a Petition fo$ <ette$s of +d.inist$ation befo$e the Re,ional T$ial
*ou$t 0RT*1 of <as PiGas *ity&
3
In he$ Petition doc8eted as SP P$oc& #o& M(39>;, )lise clai.s that she is the natu$al child of )liseo ha%in, been concei%ed and bo$n at the ti.e 3hen he$ pa$ents
3e$e both capacitated to .a$$y each othe$& Insistin, on the le,al capacity of )liseo and <ou$des to .a$$y, )lise i.pu,ned the %alidity of )liseo7s .a$$ia,e to +.elia by clai.in, that it 3as
bi,a.ous fo$ ha%in, been cont$acted du$in, the subsistence of the latte$7s .a$$ia,e 3ith one Filipito Sandico 0Filipito1& To p$o%e he$ filiation to the decedent, )lise, a.on, othe$s, attached to the
Petition fo$ <ette$s of +d.inist$ation he$ *e$tificate of <i%e Ai$th
4
si,ned by )liseo as he$ fathe$& In the sa.e petition, it 3as alle,ed that )liseo left $eal p$ope$ties 3o$th P2,040,000&00 and
pe$sonal p$ope$ties 3o$th P2,100,000&00& In o$de$ to p$ese$%e the estate of )liseo and to p$e%ent the dissipation of its %alue, )lise sou,ht he$ appoint.ent as ad.inist$at$i' of he$ late fathe$7s
*lai.in, that the %enue of the petition 3as i.p$ope$ly laid, +.elia, to,ethe$ 3ith he$ child$en, Jenneth and Jennife$, opposed the issuance of the lette$s of ad.inist$ation by filin, an
"ppositionBMotion to is.iss&
>
The petitione$s asse$ted that as sho3n by his eath *e$tificate,
6
)liseo 3as a $esident of *apas, Ta$lac and not of <as PiGas *ity, at the ti.e of his death&
Pu$suant to Section 1, Rule ;3 of the Re%ised Rules of *ou$t,
;
the petition fo$ settle.ent of decedent7s estate should ha%e been filed in *apas, Ta$lac and not in <as PiGas *ity& In addition to
thei$ clai. of i.p$ope$ %enue, the petitione$s a%e$$ed that the$e a$e no factual and le,al bases fo$ )lise to be appointed ad.inist$ati' of )liseo7s estate&
In a ecision
5
dated 11 Ma$ch 200>, the RT* di$ected the issuance of <ette$s of +d.inist$ation to )lise upon postin, the necessa$y bond& The lo3e$ cou$t $uled that the %enue of the petition 3as
p$ope$ly laid in <as PiGas *ity, the$eby disc$editin, the position ta8en by the petitione$s that )liseo7s last $esidence 3as in *apas, Ta$lac, as hea$say& The dispositi%e of the RT* decision $eads4
=a%in, attained le,al a,e at this ti.e and the$e bein, no sho3in, of any dis-ualification o$ inco.petence to se$%e as ad.inist$ato$, let lette$s of ad.inist$ation o%e$ the estate of the decedent
)liseo Quia?on, the$efo$e, be issued to petitione$, Ma& <ou$des )lise Quia?on, afte$ the app$o%al by this *ou$t of a bond in the a.ount ofP100,000&00 to be posted by he$&
9
"n appeal, the decision of the t$ial cou$t 3as affi$.ed in toto in the 25 #o%e.be$ 2005 ecision
10
$ende$ed by the *ou$t of +ppeals in *+(/&R&*! #o& 55>59& In %alidatin, the findin,s of the
RT*, the *ou$t of +ppeals held that )lise 3as able to p$o%e that )liseo and <ou$des li%ed to,ethe$ as husband and 3ife by establishin, a co..on $esidence at #o& 26 )%e$lastin, Road, Phase
>, Pila$ !illa,e, <as PiGas *ity, f$o. 19;> up to the ti.e of )liseo7s death in 1992& Fo$ pu$poses of fi'in, the %enue of the settle.ent of )liseo7s estate, the *ou$t of +ppeals upheld the
conclusion $eached by the RT* that the decedent 3as a $esident of <as PiGas *ity& The petitione$s7 Motion fo$ Reconside$ation 3as denied by the *ou$t of +ppeals in its Resolution
11
dated ;
+u,ust 2009&
The Issues
The petitione$s no3 u$,e Fs to $e%e$se the assailed *ou$t of +ppeals ecision and Resolution on the follo3in, ,$ounds4
I& T=) *"FRT "F +PP)+<S /R+!)<C )RR) I# +FFIRMI#/ T=+T )<IS)" QFI+N"# D+S + R)SI)#T "F <+S PIU+S +# T=)R)F"R), T=) P)TITI"# F"R <)TT)RS
"F +MI#ISTR+TI"# D+S PR"P)R<C FI<) DIT= T=) RT* "F <+S PIU+S:
II& T=) *"FRT "F +PP)+<S /R+!)<C )RR) I# )*<+RI#/ T=+T +M)<I+ /+R*I+(QFI+N"# D+S #"T <)/+<<C M+RRI) T" )<IS)" QFI+N"# F) T"
PR))PISTI#/ M+RRI+/): +#
III& T=) *"FRT "F +PP)+<S "!)R<""H) T=) F+*T T=+T )<IS) QFI+N"# =+S #"T S="D# +#C I#T)R)ST I# T=) P)TITI"# F"R <)TT)RS "F +MI#ISTR+TI"#&
The *ou$t7s Rulin,
De find the petition be$eft of .e$it&
Fnde$ Section 1, Rule ;3 of the Rules of *ou$t, the petition fo$ lette$s of ad.inist$ation of the estate of a decedent should be filed in the RT* of the p$o%ince 3he$e the decedent $esides at the
ti.e of his death4
Sec& 1& Dhe$e estate of deceased pe$sons settled& K If the decedent is an inhabitant of the Philippines at the ti.e of his death, 3hethe$ a citi?en o$ an alien, his 3ill shall be p$o%ed, o$ lette$s of
ad.inist$ation ,$anted, and his estate settled, in the *ou$t of Fi$st Instance no3 Re,ional T$ial *ou$t in the p$o%ince in 3hich he $esides at the ti.e of his death, and if he is an inhabitant of a
fo$ei,n count$y, the *ou$t of Fi$st Instance no3 Re,ional T$ial *ou$t of any p$o%ince in 3hich he had estate& The cou$t fi$st ta8in, co,ni?ance of the settle.ent of the estate of a decedent, shall
e'e$cise 2u$isdiction to the e'clusion of all othe$ cou$ts& The 2u$isdiction assu.ed by a cou$t, so fa$ as it depends on the place of $esidence of the decedent, o$ of the location of his estate, shall
not be contested in a suit o$ p$oceedin,, e'cept in an appeal f$o. that cou$t, in the o$i,inal case, o$ 3hen the 3ant of 2u$isdiction appea$s on the $eco$d& 0).phasis supplied1&
The te$. E$esidesE connotes e' %i te$.ini Eactual $esidenceE as distin,uished f$o. Ele,al $esidence o$ do.icile&E This te$. E$esides,E li8e the te$.s E$esidin,E and E$esidence,E is elastic and
should be inte$p$eted in the li,ht of the ob2ect o$ pu$pose of the statute o$ $ule in 3hich it is e.ployed& In the application of %enue statutes and $ules K Section 1, Rule ;3 of the Re%ised Rules of
*ou$t is of such natu$e K $esidence $athe$ than do.icile is the si,nificant facto$&
13
)%en 3he$e the statute uses 3o$d Edo.icileE still it is const$ued as .eanin, $esidence and not do.icile in the
technical sense&
14
So.e cases .a8e a distinction bet3een the te$.s E$esidenceE and Edo.icileE but as ,ene$ally used in statutes fi'in, %enue, the te$.s a$e synony.ous, and con%ey the sa.e
.eanin, as the te$. Einhabitant&E
1>
In othe$ 3o$ds, E$esidesE should be %ie3ed o$ unde$stood in its popula$ sense, .eanin,, the pe$sonal, actual o$ physical habitation of a pe$son, actual
$esidence o$ place of abode&
16
It si,nifies physical p$esence in a place and actual stay the$eat&
1;
!enue fo$ o$dina$y ci%il actions and that fo$ special p$oceedin,s ha%e one and the sa.e
.eanin,&
15
+s thus defined, E$esidence,E in the conte't of %enue p$o%isions, .eans nothin, .o$e than a pe$son7s actual $esidence o$ place of abode, p$o%ided he $esides the$ein 3ith continuity
and consistency&
19
!ie3ed in li,ht of the fo$e,oin, p$inciples, the *ou$t of +ppeals cannot be faulted fo$ affi$.in, the $ulin, of the RT* that the %enue fo$ the settle.ent of the estate of )liseo 3as p$ope$ly laid in
<as PiGas *ity& It is e%ident f$o. the $eco$ds that du$in, his lifeti.e, )liseo $esided at #o& 26 )%e$lastin, Road, Phase >, Pila$ !illa,e, <as PiGas *ity& Fo$ this $eason, the %enue fo$ the
settle.ent of his estate .ay be laid in the said city&
In opposin, the issuance of lette$s of ad.inist$ation, the petitione$s ha$p on the ent$y in )liseo7s eath *e$tificate that he is a $esident of *apas, Ta$lac 3he$e they insist his estate should be
settled& Dhile the $ecitals in death ce$tificates can be conside$ed p$oofs of a decedent7s $esidence at the ti.e of his death, the contents the$eof, ho3e%e$, is not bindin, on the cou$ts& Aoth the
RT* and the *ou$t of +ppeals found that )liseo had been li%in, 3ith <ou$des, depo$tin, the.sel%es as husband and 3ife, f$o. 19;2 up to the ti.e of his death in 199>& This findin, is consistent
3ith the fact that in 195>, )liseo filed an action fo$ 2udicial pa$tition of p$ope$ties a,ainst +.elia befo$e the RT* of Que?on *ity, A$anch 106, on the ,$ound that thei$ .a$$ia,e is %oid fo$ bein,
bi,a.ous&
20
That )liseo 3ent to the e'tent of ta8in, his .a$ital feud 3ith +.elia befo$e the cou$ts of la3 $ende$s untenable petitione$s7 position that )liseo spent the final days of his life in Ta$lac
3ith +.elia and he$ child$en& It disp$o%es $athe$ than suppo$ts petitione$s7 sub.ission that the lo3e$ cou$ts7 findin,s a$ose f$o. an e$$oneous app$eciation of the e%idence on $eco$d& Factual
findin,s of the t$ial cou$t, 3hen affi$.ed by the appellate cou$t, .ust be held to be conclusi%e and bindin, upon this *ou$t&
21
<i8e3ise un.e$ito$ious is petitione$s7 contention that the *ou$t of +ppeals e$$ed in decla$in, +.elia7s .a$$ia,e to )liseo as %oid ab initio& In a %oid .a$$ia,e, it 3as thou,h no .a$$ia,e has ta8en
place, thus, it cannot be the sou$ce of $i,hts& +ny inte$ested pa$ty .ay attac8 the .a$$ia,e di$ectly o$ collate$ally& + %oid .a$$ia,e can be -uestioned e%en beyond the lifeti.e of the pa$ties to the
.a$$ia,e&
22
It .ust be pointed out that at the ti.e of the celeb$ation of the .a$$ia,e of )liseo and +.elia, the la3 in effect 3as the *i%il *ode, and not the Fa.ily *ode, .a8in, the $ulin, in #iGal
%& Aayado,
23
applicable fou$(s-ua$e to the case at hand& In #iGal, the *ou$t, in no unce$tain te$.s, allo3ed the$ein petitione$s to file a petition fo$ the decla$ation of nullity of thei$ fathe$7s
.a$$ia,e to the$ein $espondent afte$ the death of thei$ fathe$, by cont$adistin,uishin, %oid f$o. %oidable .a$$ia,es, to 3it4
*onse-uently, %oid .a$$ia,es can be -uestioned e%en afte$ the death of eithe$ pa$ty but %oidable .a$$ia,es can be assailed only du$in, the lifeti.e of the pa$ties and not afte$ death of eithe$, in
3hich case the pa$ties and thei$ offsp$in, 3ill be left as if the .a$$ia,e had been pe$fectly %alid& That is 3hy the action o$ defense fo$ nullity is i.p$esc$iptible, unli8e %oidable .a$$ia,es 3he$e the
action p$esc$ibes& "nly the pa$ties to a %oidable .a$$ia,e can assail it but any p$ope$ inte$ested pa$ty .ay attac8 a %oid .a$$ia,e&
24
It 3as e.phasi?ed in #iGal that in a %oid .a$$ia,e, no .a$$ia,e has ta8en place and it cannot be the sou$ce of $i,hts, such that any inte$ested pa$ty .ay attac8 the .a$$ia,e di$ectly o$
collate$ally 3ithout p$esc$iption, 3hich .ay be filed e%en beyond the lifeti.e of the pa$ties to the .a$$ia,e&
2>
Rele%ant to the fo$e,oin,, the$e is no doubt that )lise, 3hose successional $i,hts 3ould be p$e2udiced by he$ fathe$7s .a$$ia,e to +.elia, .ay i.pu,n the e'istence of such .a$$ia,e e%en afte$
the death of he$ fathe$& The said .a$$ia,e .ay be -uestioned di$ectly by filin, an action attac8in, the %alidity the$eof, o$ collate$ally by $aisin, it as an issue in a p$oceedin, fo$ the settle.ent of
the estate of the deceased spouse, such as in the case at ba$& Ineluctably, )lise, as a co.pulso$y hei$,
26
has a cause of action fo$ the decla$ation of the absolute nullity of the %oid .a$$ia,e of
)liseo and +.elia, and the death of eithe$ pa$ty to the said .a$$ia,e does not e'tin,uish such cause of action&
=a%in, established the $i,ht of )lise to i.pu,n )liseo7s .a$$ia,e to +.elia, 3e no3 p$oceed to dete$.ine 3hethe$ o$ not the decedent7s .a$$ia,e to +.elia is %oid fo$ bein, bi,a.ous&
*ont$a$y to the position ta8en by the petitione$s, the e'istence of a p$e%ious .a$$ia,e bet3een +.elia and Filipito 3as sufficiently established by no less than the *e$tificate of Ma$$ia,e issued
by the iocese of Ta$lac and si,ned by the officiatin, p$iest of the Pa$ish of San #icolas de Tolentino in *apas, Ta$lac& The said .a$$ia,e ce$tificate is a co.petent e%idence of .a$$ia,e and the
ce$tification f$o. the #ational +$chi%e that no info$.ation $elati%e to the said .a$$ia,e e'ists does not di.inish the p$obati%e %alue of the ent$ies the$ein& De ta8e 2udicial notice of the fact that
the fi$st .a$$ia,e 3as celeb$ated .o$e than >0 yea$s a,o, thus, the possibility that a $eco$d of .a$$ia,e can no lon,e$ be found in the #ational +$chi%e, ,i%en the inte$%al of ti.e, is not
co.pletely $e.ote& *onse-uently, in the absence of any sho3in, that such .a$$ia,e had been dissol%ed at the ti.e +.elia and )liseo7s .a$$ia,e 3as sole.ni?ed, the inescapable conclusion is
that the latte$ .a$$ia,e is bi,a.ous and, the$efo$e, %oid ab initio&
2;
#eithe$ a$e 3e inclined to lend c$edence to the petitione$s7 contention that )lise has not sho3n any inte$est in the Petition fo$ <ette$s of +d.inist$ation&
Section 6, Rule ;5 of the Re%ised Rules of *ou$t lays do3n the p$efe$$ed pe$sons 3ho a$e entitled to the issuance of lette$s of ad.inist$ation, thus4
Sec& 6& Dhen and to 3ho. lette$s of ad.inist$ation ,$anted& V If no e'ecuto$ is na.ed in the 3ill, o$ the e'ecuto$ o$ e'ecuto$s a$e inco.petent, $efuse the t$ust, o$ fail to ,i%e bond, o$ a pe$son
dies intestate, ad.inist$ation shall be ,$anted4
0a1 To the su$%i%in, husband o$ 3ife, as the case .ay be, o$ ne't of 8in, o$ both, in the disc$etion of the cou$t, o$ to such pe$son as such su$%i%in, husband o$ 3ife, o$ ne't of 8in,
$e-uests to ha%e appointed, if co.petent and 3illin, to se$%e:
0b1 If such su$%i%in, husband o$ 3ife, as the case .ay be, o$ ne't of 8in, o$ the pe$son selected by the., be inco.petent o$ un3illin,, o$ if the husband o$ 3ido3, o$ ne't of 8in,
ne,lects fo$ thi$ty 0301 days afte$ the death of the pe$son to apply fo$ ad.inist$ation o$ to $e-uest that ad.inist$ation be ,$anted to so.e othe$ pe$son, it .ay be ,$anted to one o$ .o$e
of the p$incipal c$edito$s, if co.petent and 3illin, to se$%e:
0c1 If the$e is no such c$edito$ co.petent and 3illin, to se$%e, it .ay be ,$anted to such othe$ pe$son as the cou$t .ay select&
Fpon the othe$ hand, Section 2 of Rule ;9 p$o%ides that a petition fo$ <ette$s of +d.inist$ation .ust be filed by an inte$ested pe$son, thus4
Sec& 2& *ontents of petition fo$ lette$s of ad.inist$ation& V + petition fo$ lette$s of ad.inist$ation .ust be filed by an inte$ested pe$son and .ust sho3, so fa$ as 8no3n to the petitione$4
0a1 The 2u$isdictional facts:
0b1 The na.es, a,es, and $esidences of the hei$s, and the na.es and $esidences of the c$edito$s, of the decedent:
0c1 The p$obable %alue and cha$acte$ of the p$ope$ty of the estate:
0d1 The na.e of the pe$son fo$ 3ho. lette$s of ad.inist$ation a$e p$ayed&
Aut no defect in the petition shall $ende$ %oid the issuance of lette$s of ad.inist$ation&
+n Einte$ested pa$ty,E in estate p$oceedin,s, is one 3ho 3ould be benefited in the estate, such as an hei$, o$ one 3ho has a clai. a,ainst the estate, such as a c$edito$& +lso, in estate
p$oceedin,s, the ph$ase Ene't of 8inE $efe$s to those 3hose $elationship 3ith the decedent Is such that they a$e entitled to sha$e in the estate as dist$ibutees&
25
In the instant case, )lise, as a co.pulso$y hei$ 3ho stands to be benefited by the dist$ibution of )liseo7s estate, is dee.ed to be an inte$ested pa$ty& Dith the o%e$3hel.in, e%idence on $eco$d
p$oduced by )lise to p$o%e he$ filiation to )liseo, the petitione$s7 poundin, on he$ lac8 of inte$est in the ad.inist$ation of the decedent7s estate, is 2ust a despe$ate atte.pt to s3ay this *ou$t to
$e%e$se the findin,s of the *ou$t of +ppeals& *e$tainly, the $i,ht of )lise to be appointed ad.inist$ati' of the estate of )liseo is on ,ood ,$ounds& It is founded on he$ $i,ht as a co.pulso$y hei$,
3ho, unde$ the la3, is entitled to he$ le,iti.ate afte$ the debts of the estate a$e satisfied&
29
=a%in, a %ested $i,ht in the dist$ibution of )liseo7s estate as one of his natu$al child$en, )lise can
$i,htfully be conside$ed as an inte$ested pa$ty 3ithin the pu$%ie3 of the la3&
D=)R)F"R), p$e.ises conside$ed, the petition is )#I) fo$ lac8 of .e$it& +cco$din,ly, the *ou$t of +ppeals assailed 25 #o%e.be$ 2005 ecision and ; +u,ust 2009 Resolution, a$c
+FFIRM) in toto&
S" "R)R)&
JOSE PORTUGAL PERE7
+ssociate Justice
D) *"#*FR4
ANTONIO T. CARPIO
+ssociate Justic
*hai$pe$sone
ARTURO ". $RION
+ssociate Justice
MARIANO C. "EL CASTILLO
+ssociate Justice
ESTELA M. PERLAS*$ERNA$E
+ssociate Justice
+ T T ) S T + T I " #
I attest that the conclusions in the abo%e ecision 3e$e $eached in consultation be lo$e the case 3as assi,ned to the 3$ite$ o$ the opinion o$ the *ou$t7s i%ision&
ATONIO T. CARPIO
+ssociate Justice
*hai$pe$son, Second i%ision
* ) R T I F I * + T I " #
Pu$suant to Section 13, +$ticle !III of the *onstitution and the i%ision *hai$pe$sonIs +ttestation, it is he$eby ce$tified that the conclusions in the abo%e ecision 3e$e $eached in consultation
befo$e the case 3as assi,ned to the 3$ite$ o$ the opinion of the *ou$tIs i%ision&
MARIA LOUR"ES P. A. SERENO
*hief Justice
#oo-0o-.(
1
Penned by +ssociate Justice Ra.on R& /a$cia 3ith +ssociate Justices Josefina /ue%a$a(Salon,a and Ma,dan,al M& e <eon, concu$$in,, *+ $ollo, pp&94(106&
2
Id& at 10>&
3
Special P$oceedin, #o& M(39>;& Reco$ds, !ol& I, pp& 1(9&
4
Id& at 10&
>
Id& at 40(44&
6
Id& at 11&
;
Sec& 1& Dhe$e estate of deceased pe$sons settled& K If the decedent is an inhabitant of the Philippines at the ti.e of his death, 3hethe$ a citi?en o$ an alien, his 3ill shall be p$o%ed,
o$ lette$s of ad.inist$ation ,$anted, and his estate settled, in the *ou$t of Fi$st Instance no3 Re,ional T$ial *ou$t in the p$o%ince in 3hich he $esides at the ti.e of his death, and if he is
an inhabitant of a fo$ei,n count$y, the *ou$t of Fi$st Instance no3 Re,ional T$ial *ou$t of any p$o%ince in 3hich he had estate& The cou$t fi$st ta8in, co,ni?ance of the settle.ent of the
estate of a decedent, shall e'e$cise 2u$isdiction to the e'clusion of all othe$ cou$ts& The 2u$isdiction assu.ed by a cou$t, so fa$ as it depends on the place of $esidence of the decedent,
o$ of the location of his estate, shall not be contested in a suit o$ p$oceedin,, e'cept in an appeal f$o. that cou$t, in the o$i,inal case, o$ 3hen the 3ant of 2u$isdiction appea$s on the
$eco$d&
5
Penned by Jud,e Aonifacio San? Maceda& *+ $ollo, pp& 33(35&
9
Id& at 35&
10
Id& at 94(106&
11
Id& at 115(119&
12
Rollo, pp& 32(33&
13
/a$cia Fule %& *ou$t of +ppeals, /&R& #os& <(40>02 and <(426;0, 29 #o%e.be$ 19;6, ;4 S*R+ 159, 199&
14
Id&
1>
Id&
16
Id&
1;
Id&
15
Jao %& *ou$t of +ppeals, 432 Phil& 160, 1;0 020021&
19
Id&
20
Quia?on %& /a$cia, *i%il *ase #o& Q(43;12& Reco$ds, !ol& II, pp& 234(240&
21
/olden 0Iloilo1 elta Sales *o$po$ation %& P$e(St$ess Inte$national *o$po$ation, /&R& #o& 1;6;65, 12 Janua$y 2009, >;6 S*R+ 23, 3>: Seaoil Pet$oleu. *o$po$ation %& +utoco$p
/$oup, /&R& #o& 164326, 1; "ctobe$ 2005, >69 S*R+ 35;, 394: )2e$cito %& M&R& !a$,as *onst$uction, /&R& #o& 1;2>9>, 10 +p$il 2005, >>1 S*R+ 9;, 106&
22
Juliano(<la%e %& Republic, /&R& #o& 169;66, 30 Ma$ch 2011, 646 S*R+ 63;, 6>6(6>; citin, #iGal %& Aayado,, 354 Phil& 661, 6;3 020001&
23
Id&
24
Id& at 6;3&
2>
Id&
26
#e3 *i%il *ode& +$t& 961& In default of the testa.enta$y hei$s, the la3 %ests the inhe$itance, in acco$dance 3ith the $ules he$einafte$ set fo$th, in the le,iti.ate and ille,iti.ate
$elati%es of the deceased, in the su$%i%in, spouse, and in the State&
#e3 *i%il *ode& +$t& 955& In the absence of le,iti.ate descendants o$ ascendants, the ille,iti.ate child$en shall succeed to the enti$e estate of the deceased&
2;
"ld *i%il *ode& +$t& 53& +ny .a$$ia,e subse-uently cont$acted by any pe$son du$in, the lifeti.e of the fi$st spouse of such pe$son 3ith any pe$son othe$ than such fi$st spouse shall
be ille,al and %oid f$o. its pe$fo$.ance, unless4
011 The fi$st .a$$ia,e 3as annulled o$ dissol%ed: o$
021 The fi$st spouse had been absent fo$ se%en consecuti%e yea$s at the ti.e of the second .a$$ia,e 3ithout the spouse p$esent ha%in, ne3s of the absentee bein, ali%e, o$
if the absentee, thou,h he has been absent fo$ less than se%en yea$s, is ,ene$ally conside$ed as dead and belie%ed to be so by the spouse p$esent at the ti.e of cont$actin,
such subse-uent .a$$ia,e, o$ if the absentee is p$esu.ed dead acco$din, to +$ticles 390 and 391& The .a$$ia,e so cont$acted shall be %alid in any of the th$ee cases until
decla$ed null and %oid by a co.petent cou$t&
25
Solinap %& <ocsin, J$&, 423 Phil& 192, 199 020011&
29
#e3 *i%il *ode& +$t& 961& In default o$ the testa.enta$y hei$s, the la3, %ests the inhe$itance, in acco$dance 3ith the $ules he$einafte$ set fo$th, in the le,iti.ate and ille,iti.ate
$elati%es of the deceased, in the su$%i%in, spouse, and in the State&
#e3 *i%il *ode& +$t& 955& In the absence of le,iti.ate descendants o$ ascendants, the ille,iti.ate child$en shall succeed to the enti$e estate of the deceased&
The <a3phil P$o2ect ( +$ellano <a3 Foundation
C5SE DI>EST
No. 2 - 5a#0an 7. D1n20a.an,G.R. No. 180321Mar,) 20, 2012+A!TS:
=espondent was the registered owner of a parce! of !and. :hi!e on
board a ;eepney, respondentEs other, 'i!ia, had a con9ersation with one
2aura regarding the sa!e of the said property. ,e!ie9ing that 2aura was a
rea! estate agent, 'i!ia borrowed the ownerEs copy of the TCT fro
respondent and ga9e it to 2aura. 2aura then subdi9ided the property intose9era! !ots. Through a fa!sified deed of sa!e, 2aura was
ab!e to se!! the !otsto different buyers. 2aura so!d one of the !ots to one 'orna who so!d thesae to petitioner
for -/,888.88. =espondents fi!ed a case Cance!!ation of Transfer Certificate of Tit!e before the =TC. Suons was, thereafter,ser9ed
to petitioner through her other, 5nita -ad!an. The =TC rendered aDecision finding petitioner to be a buyer in good faith and,
conse<uent!y,disissed the cop!aint. The C5 re9ersed and set aside the Decision of the=TC and ordered the cance!!ation of the
TCT.
ISSE:
:hether the court ac<uired ;urisdiction o9er the sub;ect atter
(ELD:
NO.

In order to deterine which court has ;urisdiction o9er theaction, an e6aination of the cop!aint is essentia!. ,asic as a
hornboo+ princip!e is that ;urisdiction o9er the sub;ect atter of a case is conferred by!aw and deterined by the a!!egations in the
cop!aint which coprise aconcise stateent of the u!tiate facts constituting the p!aintiff"s cause of action.The Court has a!ready
he!d that a cop!aint ust a!!ege the assessed9a!ue of the rea! property sub;ect of the cop!aint or the interest thereon todeterine
which court has ;urisdiction o9er the action. In the case at bar, theon!y basis of 9a!uation of the sub;ect property is the 9a!ue a!!eged in
thecop!aint that the !ot was so!d by 'orna to petitioner in the aountof -/,888.88. Since the aount a!!eged in the Cop!aint by
respondents for

the disputed !ot is on!y -/,888.88, the 2TC and not the =TC has

;urisdiction o9er the action. Therefore, a!! proceedings in the =TC are nu!!and 9oid.