FRANCISCO LIM TUPAS and IGNACIO LIM TUPAS, Petitioners, v. HON.

COURT OF APPEALS and

PEOPLE OF THE PHILIPPINES, Respondents.
Facts
T!e record s!o"s t!at t!e petitioners received a cop# o$ t!e decision o$ t!e Re%iona& Tria& Co'rt o$ Pasa#
Cit# on Apri& (, )*+*, and t!at t!e ,otion $or reconsideration t!ereo$ "as $i&ed on Apri& )-, )*+*, or
$o'rteen da#s &ater. T!e order o$ Ma# (, )*+*, den#in% t!e ,otion "as received .# t!e petitioners/
co'nse& on Ma# *, )*+*. Instead o$ $i&in% t!e petition $or revie" "it! t!e Co'rt o$ Appea&s "it!in t!e
re,ainder o$ t!e )01da# re%&e,entar# period, t!at is, on Ma# )2, )*+*, t!e petitioner did so on&# on Ma#
3(, )*+*, or )4 da#s &ater. T!e petition "as t!ere$ore c&ear&# tard#.
He&d
T!e $ina& 5'd%,ent or order o$ a re%iona& tria& co'rt in an appea& $ro, t!e $ina& 5'd%,ent or order o$ a
,etropo&itan tria& co'rt, ,'nicipa& tria& co'rt and ,'nicipa& circ'it tria& co'rt ,a# .e appea&ed to t!e Co'rt
o$ Appea&s t!ro'%! a petition $or revie" in accordance "it! Section 33 o$ 6P no. )3* and Section 337.8 o$
t!e Interi, R'&es, or to t!is Co'rt t!ro'%! a petition $or revie" on certiorari in accordance "it! R'&e 40 o$
t!e R'&es. T!e reason $or e9tendin% t!e period $or t!e $i&in% o$ a record on appea& is a&so app&ica.&e to t!e
$i&in% o$ a petition $or revie" "it! t!e Co'rt o$ Appea&s. I$ a ,otion $or reconsideration is $i&ed "it! and
denied .# a re%iona& tria& co'rt, t!e ,ovant !as on&# t!e re,ainin% period "it!in "!ic! to $i&e a petition $or
revie". Hence, it ,a# .e necessar# to $i&e a ,otion "it! t!e Co'rt o$ appea&s $or e9tension o$ ti,e to $i&e
s'c! petition $or revie"
T!e petitioners/ co'nse& did not $i&e t!e petition $or revie" "it!in t!e re,ainin% period, "!ic! !e s!o'&d
!ave :no"n "as on&# one da#. Neit!er did !e ,ove $or an e9tension t!at "o'&d !ave .een %ranted as a
,atter o$ co'rse. T!e petition $or revie" .ein% indisp'ta.&# &ate, !e co'&d not t!erea$ter as: t!at it .e
treated as a petition $or certiorari 'nder R'&e ;0 o$ t!e R'&es o$ Co'rt, "!ic! can .e $i&ed "it!in a
reasona.&e ti,e. T!is re,ed# cannot .e e,p&o#ed as a s'.stit'te $or a &ost appea&.
Rules of procedure are intended to ensure the orderly administration of justice and the protection
of substantive rights in judicial and extrajudicial proceedings. It is a mistake to suppose that
substantive law and adjective law are contradictory to each other or, as has often been suggested,
that enforcement of procedural rules should never be permitted if it will result in prejudice to the
substantive rights of the litigants. This is not exactly true; the concept is much misunderstood. s
a matter of fact, the policy of the courts is to give effect to both kinds of law, as complementing
each other, in the just and speedy resolution of the dispute between the parties. !bservance of
both substantive and procedural rights is e"ually guaranteed by due process, whatever the source
of such rights, be it the #onstitution itself or only a statute or a rule of court. 4
T!e petitioners/ s'.,ission t!at t!eir co'nse&/s $ai&'re to appea& on ti,e s!o'&d .e re%arded as e9c'sa.&e
ne%&ect or !onest error is not co,pati.&e "it! !is i,pressive credentia&s. He is a presti%io's ,e,.er o$
t!e .ar and !is cond'ct at t!e tria& de,onstrated !is e9perience and s:i&& as a tria& &a"#er.
S'c! a reason is !ard&# p&a'si.&e as t!e petitioner/s ne" co'nse& s!o'&d :no". Ot!er"ise, a&& a de$eated
part# "o'&d !ave to do to sa&va%e !is case is c&ai, ne%&ect or ,ista:e on t!e part o$ !is co'nse& as a
%ro'nd $or reversin% t!e adverse 5'd%,ent. T!ere "o'&d .e no end to &iti%ation i$ t!is "ere a&&o"ed
It !as not escaped t!e attention o$ t!e Co'rt t!at t!e ,otion $or reconsideration o$ t!e decision o$ t!e tria&
co'rt "as $i&ed on t!e $o'rteent! da# o$ t!e re%&e,entar# period and t!at t!e petition $or revie" "as $i&ed,
pres',a.&# 'nder t!e .e&ie$ t!at a ne" )01da# period !ad .e%'n, $o'rteen da#s a$ter t!e petitioners/
co'nse& "as noti$ied o$ t!e denia& o$ t!e ,otion. It "o'&d see, to t!e Co'rt t!at i$ t!e petitioners $e&t so
stron%&# t!at t!e said decision "as erroneo's t!e# "o'&d !ave de,onstrated ,ore spirit and pro,ptit'de
in assai&in% it. Instead, t!e# "aited to ,ove $or reconsideration 'nti& t!e &ast !o'r and, '&ti,ate&#, "!en t!e
,otion "as denied, $i&ed t!e petition $or revie" on&# "!en it "as a&read# too &ate. Under t!ese
circ',stances, e<'it# cannot .e e9tended to t!e, to so$ten t!e ri%or o$ t!e &a" t!e# !ave not c!osen to
o.serve.
For a&& its conceded ,erits, e<'it# is avai&a.&e on&# in t!e a.sence o$ &a" and not as its rep&ace,ent.
E<'it# is descri.ed as 5'stice o'tside &e%a&it#, "!ic! si,p&# ,eans t!at it cannot s'pp&ant a&t!o'%! it ,a#,
as o$ten !appens, s'pp&e,ent t!e &a". =e said in an ear&ier case, and "e repeat it no", t!at a&& a.stract
ar%',ents .ased on&# on e<'it# s!o'&d #ie&d to positive r'&es, "!ic! pre1e,pt and prevai& over s'c!
pers'asions. E,otiona& appea&s $or 5'stice, "!i&e t!e# ,a# "rin% t!e !eart o$ t!e Co'rt, cannot 5'sti$#
disre%ard o$ t!e ,andate o$ t!e &a" as &on% as it re,ains in $orce. T!e app&ica.&e ,a9i,, "!ic! %oes .ac:
to t!e ancient da#s o$ t!e Ro,an 5'rists > and is no" sti&& reverent&# o.served > is ?ae<'etas n'n<'a,
contravenit &e%is.? +
=HEREFORE, t!e ,otion $or reconsideration is @ENIE@ "it! $ina&it#. It is so ordered.
6OSTON EAUITB RESOURCES, INC., Petitioner, v. COURT OF APPEALS AN@ LOLITA G. TOLE@O,
Respondents.
Petitioner $i&ed a co,p&aint $or s', o$ ,one# "it! a pra#er $or t!e iss'ance o$ a "rit o$ pre&i,inar#
attac!,ent a%ainst t!e spo'ses Man'e& and Lo&ita To&edo.; Herein respondent $i&ed an Ans"er dated )*
Marc! )**+ .'t on - Ma# )**+, s!e $i&ed a Motion $or Leave to Ad,it A,ended Ans"er- in "!ic! s!e
a&&e%ed, a,on% ot!ers, t!at !er !'s.and and co1de$endant, Man'e& To&edo 7Man'e&8, is a&read# dead
?)( C'&# )**0? as t!e date o$ deat!. As a res'&t, petitioner $i&ed a ,otion, dated 0 A'%'st )***, to re<'ire
respondent to disc&ose t!e !eirs o$ Man'e&.)2 In co,p&iance "it! t!e ver.a& order o$ t!e co'rt d'rin% t!e
)) Octo.er )*** !earin% o$ t!e case, respondent s'.,itted t!e re<'ired na,es and addresses o$ t!e
!eirs.)) Petitioner t!en $i&ed a Motion $or S'.stit'tion,)3 dated )+ Can'ar# 3222, pra#in% t!at Man'e& .e
s'.stit'ted .# !is c!i&dren as part#1de$endants. It appears t!at t!is ,otion "as %ranted .# t!e tria& co'rt in
an Order dated * Octo.er 3222.)(
On 3; Ma# 3224, t!e reception o$ evidence $or !erein respondent "as cance&&ed 'pon a%ree,ent o$ t!e
parties. On 34 Septe,.er 3224, co'nse& $or !erein respondent "as %iven a period o$ $i$teen da#s "it!in
"!ic! to $i&e a de,'rrer to evidence.)0 Ho"ever, on - Octo.er 3224, respondent instead $i&ed a ,otion to
dis,iss t!e co,p&aint, citin% t!e $o&&o"in% as %ro'nds 7)8 t!at t!e co,p&aint $ai&ed to i,p&ead an
indispensa.&e part# or a rea& part# in interestD !ence, t!e case ,'st .e dis,issed $or $ai&'re to state a
ca'se o$ actionD 738 t!at t!e tria& co'rt did not ac<'ire 5'risdiction over t!e person o$ Man'e& p'rs'ant to
Section 0, R'&e +; o$ t!e Revised R'&es o$ Co'rtD 7(8 t!at t!e tria& co'rt erred in orderin% t!e s'.stit'tion
o$ t!e deceased Man'e& .# !is !eirsD and 748 t!at t!e co'rt ,'st a&so dis,iss t!e case a%ainst Lo&ita
To&edo in accordance "it! Section ;, R'&e +; o$ t!e R'&es o$ Co'rt.);
T!e tria& co'rt, in an Order dated + Nove,.er 3224, denied t!e ,otion to dis,iss $or !avin% .een $i&ed o't
o$ ti,e, citin% Section ), R'&e ); o$ t!e )**- R'&es o$ Co'rt "!ic! states t!at ?E=Fit!in t!e ti,e $or .'t
.e$ore $i&in% t!e ans"er to t!e co,p&aint or p&eadin% assertin% a c&ai,, a ,otion to dis,iss ,a# .e ,ade 9
9 9.?)- Respondent/s ,otion $or reconsideration o$ t!e order o$ denia& "as &i:e"ise denied on t!e %ro'nd
t!at ?de$endants/ attac: on t!e 5'risdiction o$ t!is Co'rt is no" .arred .# estoppe& .# &ac!es? since
respondent $ai&ed to raise t!e iss'e despite severa& c!ances to do so.)+
A%%rieved, respondent $i&ed a petition $or certiorari "it! t!e Co'rt o$ Appea&s a&&e%in% t!at t!e tria& co'rt
serio's&# erred and %rave&# a.'sed its discretion in den#in% !er ,otion to dis,iss despite discover#,
d'rin% t!e tria& o$ t!e case, o$ evidence t!at "o'&d constit'te a %ro'nd $or dis,issa& o$ t!e case.)*
T!e Co'rt o$ Appea&s %ranted t!e petition .ased on t!e $o&&o"in% %ro'nds It is e&e,entar# t!at co'rts
ac<'ire 5'risdiction over t!e person o$ t!e de$endant 9 9 9 on&# "!en t!e &atter vo&'ntari&# appeared or
s'.,itted to t!e co'rt or .# coercive process iss'ed .# t!e co'rt to !i,, 9 9 9. In t!is case, it is
'ndisp'ted t!at "!en EpetitionerF 6oston $i&ed t!e co,p&aint on @ece,.er 34, )**-, de$endant Man'e& S.
To&edo "as a&read# dead, 9 9 9. S'c! .ein% t!e case, t!e co'rt a <'o co'&d not !ave ac<'ired 5'risdiction
over t!e person o$ de$endant Man'e& S. To&edo.It is "e&&1sett&ed t!at iss'e on 5'risdiction ,a# .e raised at
an# sta%e o$ t!e proceedin%, even $or t!e $irst ti,e on appea&. 6# ti,e&# raisin% t!e iss'e on 5'risdiction in
!er ,otion to dis,iss 9 9 9 ErespondentF is not estopped E$ro,F raisin% t!e <'estion on 5'risdiction.
Moreover, "!en iss'e on 5'risdiction "as raised .# ErespondentF, t!e co'rt a <'o !ad not #et decided t!e
case, !ence, t!ere is no .asis $or t!e co'rt a <'o to invo:e estoppe& to 5'sti$# its denia& o$ t!e ,otion $or
reconsiderationD
T!e Iss'es
Respondent is a&read# estopped $ro, <'estionin% t!e tria& co'rt/s 5'risdictionD
Petitioner never $ai&ed to i,p&ead an indispensa.&e part# as t!e estate o$ Man'e& is not an indispensa.&e
part#D
T!e inc&'sion o$ Man'e& as part#1de$endant is a ,ere ,is5oinder o$ part# not "arrantin% t!e dis,issa& o$
t!e case .e$ore t!e &o"er co'rtD and
Since t!e estate o$ Man'e& is not an indispensa.&e part#, it is not necessar# t!at petitioner $i&e its c&ai,
a%ainst t!e estate o$ Man'e&.
In essence, "!at is at iss'e !ere is t!e correctness o$ t!e tria& co'rt/s orders den#in% respondent/s ,otion
to dis,iss.
T!e R'&in% o$ t!e Co'rt
Motion to dis,iss $i&ed o't o$ ti,e
To .e%in "it!, t!e Co'rt o$ Appea&s erred in %rantin% t!e "rit o$ certiorari in $avor o$ respondent. =e&&
sett&ed is t!e r'&e t!at t!e specia& civi& action $or certiorari is not t!e proper re,ed# to assai& t!e denia& .#
t!e tria& co'rt o$ a ,otion to dis,iss. T!e order o$ t!e tria& co'rt den#in% a ,otion to dis,iss is ,ere&#
inter&oc'tor#, as it neit!er ter,inates nor $ina&&# disposes o$ a case and sti&& &eaves so,et!in% to .e done
.# t!e co'rt .e$ore a case is $ina&&# decided on t!e ,erits.3) T!ere$ore, ?t!e proper re,ed# in s'c! a case
is to appea& a$ter a decision !as .een rendered.?33
As t!e S'pre,e Co'rt !e&d in Indiana Aerospace Universit# v. Co,,. on Hi%!er Ed'cation3(
A "rit o$ certiorari is not intended to correct ever# controversia& inter&oc'tor# r'&in%D it is resorted on&# to
correct a %rave a.'se o$ discretion or a "!i,sica& e9ercise o$ 5'd%,ent e<'iva&ent to &ac: o$ 5'risdiction.
Its $'nction is &i,ited to :eepin% an in$erior co'rt "it!in its 5'risdiction and to re&ieve persons $ro, ar.itrar#
acts G acts "!ic! co'rts or 5'd%es !ave no po"er or a't!orit# in &a" to per$or,. It is not desi%ned to
correct erroneo's $indin%s and conc&'sions ,ade .# t!e co'rts
Even ass',in% t!at certiorari is t!e proper re,ed#, t!e tria& co'rt did not co,,it %rave a.'se o$ discretion
in den#in% respondent/s ,otion to dis,iss. It, in $act, acted correct&# "!en it iss'ed t!e <'estioned orders
as respondent/s ,otion to dis,iss "as $i&ed SIH BEARS AN@ FIIE MONTHS AFTER SHE FILE@ HER
AMEN@E@ ANS=ER. T!is circ',stance a&one a&read# "arranted t!e o'tri%!t dis,issa& o$ t!e ,otion $or
!avin% .een $i&ed in c&ear contravention o$ t!e e9press ,andate o$ Section ), R'&e );, o$ t!e Revised
R'&es o$ Co'rt. Under t!is provision, a ,otion to dis,iss s!a&& .e $i&ed "it!in t!e ti,e $or .'t .e$ore t!e
$i&in% o$ an ans"er to t!e co,p&aint or p&eadin% assertin% a c&ai,.34
Respondent/s act o$ $i&in% ,'&tip&e ,otions, s'c! as t!e $irst and ear&ier ,otion to dis,iss and t!en t!e
,otion to dis,iss at iss'e !ere, as "e&& as severa& ,otions $or postpone,ent, &ends credi.i&it# to t!e
position ta:en .# petitioner, "!ic! is s!ared .# t!e tria& co'rt, t!at respondent is de&i.erate&# i,pedin% t!e
ear&# disposition o$ t!is case. T!e $i&in% o$ t!e second ,otion to dis,iss "as, t!ere$ore, ?not on&# i,proper
.'t a&so di&ator#.?3+ T!'s, t!e tria& co'rt, ?$ar $ro, deviatin% or stra#in% o$$ co'rse $ro, esta.&is!ed
5'rispr'dence on Et!eF ,atter, 9 9 9 !ad in $act $ait!$'&&# o.served t!e &a" and &e%a& precedents in t!is
case.?3* T!e Co'rt o$ Appea&s, t!ere$ore, erred not on&# in entertainin% respondent/s petition $or certiorari,
it &i:e"ise erred in r'&in% t!at t!e tria& co'rt co,,itted %rave a.'se o$ discretion "!en it denied
respondent/s ,otion to dis,iss.
On "!et!er or not respondent is estopped $ro,
<'estionin% t!e 5'risdiction o$ t!e tria& co'rt
At t!e o'tset, it ,'st .e !ere stated t!at, as t!e s'cceedin% disc'ssions "i&& de,onstrate, 5'risdiction over
t!e person o$ Man'e& s!o'&d not .e an iss'e in t!is case. A protracted disco'rse on 5'risdiction is,
nevert!e&ess, de,anded .# t!e $act t!at 5'risdiction !as .een raised as an iss'e $ro, t!e &o"er co'rt, to
t!e Co'rt o$ Appea&s and, $ina&&#, .e$ore t!is Co'rt. For t!e sa:e o$ c&arit#, and in order to $ina&&# sett&e t!e
controvers# and $'&&# dispose o$ a&& t!e iss'es in t!is case, it "as dee,ed i,perative to reso&ve t!e iss'e
o$ 5'risdiction.
). Aspects o$ C'risdiction
Petitioner ca&&s attention to t!e $act t!at respondent/s ,otion to dis,iss <'estionin% t!e tria& co'rt/s
5'risdiction "as $i&ed ,ore t!an si9 #ears a$ter !er a,ended ans"er "as $i&ed. Accordin% to petitioner,
respondent !ad severa& opport'nities, at vario's sta%es o$ t!e proceedin%s, to assai& t!e tria& co'rt/s
5'risdiction .'t never did so $or si9 strai%!t #ears. Citin% t!e doctrine &aid do"n in t!e case o$ Ti5a,, et a&.
v. Si.on%!ano#, et a&.(2 petitioner c&ai,ed t!at respondent/s $ai&'re to raise t!e <'estion o$ 5'risdiction at
an ear&ier sta%e .ars !er $ro, &ater <'estionin% it, especia&&# since s!e active&# participated in t!e
proceedin%s cond'cted .# t!e tria& co'rt.
Petitioner/s ar%',ent is ,isp&aced, in t!at, it $ai&ed to consider t!at t!e concept o$ 5'risdiction !as severa&
aspects, na,e&# 7)8 5'risdiction over t!e s'.5ect ,atterD 738 5'risdiction over t!e partiesD 7(8 5'risdiction
over t!e iss'es o$ t!e caseD and 748 in cases invo&vin% propert#, 5'risdiction over t!e res or t!e t!in% "!ic!
is t!e s'.5ect o$ t!e &iti%ation.()
T!e aspect o$ 5'risdiction "!ic! ,a# .e .arred $ro, .ein% assai&ed as a res'&t o$ estoppe& .# &ac!es is
5'risdiction over t!e s'.5ect ,atter.
In a&& o$ t!ese cases, t!e S'pre,e Co'rt .arred t!e attac: on t!e 5'risdiction o$ t!e respective co'rts
concerned over t!e s'.5ect ,atter o$ t!e case .ased on estoppe& .# &ac!es, dec&arin% t!at parties cannot
.e a&&o"ed to .e&ated&# adopt an inconsistent post're .# attac:in% t!e 5'risdiction o$ a co'rt to "!ic! t!e#
s'.,itted t!eir ca'se vo&'ntari&#.(0
Here, "!at respondent "as <'estionin% in !er ,otion to dis,iss .e$ore t!e tria& co'rt "as t!at co'rt/s
5'risdiction over t!e person o$ de$endant Man'e&. T!'s, t!e princip&e o$ estoppe& .# &ac!es $inds no
app&ication in t!is case. Instead, t!e princip&es re&atin% to 5'risdiction over t!e person o$ t!e parties are
pertinent !erein.
6ased on t!e $ore%oin% provisions, t!e ?o.5ection on 5'risdictiona& %ro'nds "!ic! is not "aived even i$ not
a&&e%ed in a ,otion to dis,iss or t!e ans"er is &ac: o$ 5'risdiction over t!e s'.5ect ,atter. 9 9 9 Lac: o$
5'risdiction over t!e s'.5ect ,atter can a&"a#s .e raised an#ti,e, even $or t!e $irst ti,e on appea&, since
5'risdictiona& iss'es cannot .e "aived 9 9 9 s'.5ect, !o"ever, to t!e princip&e o$ estoppe& .# &ac!es.?(;
T!e Co'rt o$ Appea&s, t!ere$ore, erred "!en it ,ade a s"eepin% prono'nce,ent in its <'estioned
decision, statin% t!at ?iss'e on 5'risdiction ,a# .e raised at an# sta%e o$ t!e proceedin%, even $or t!e $irst
ti,e on appea&? and t!at, t!ere$ore, respondent ti,e&# raised t!e iss'e in !er ,otion to dis,iss and is,
conse<'ent&#, not estopped $ro, raisin% t!e <'estion o$ 5'risdiction. As t!e <'estion o$ 5'risdiction
invo&ved !ere is t!at over t!e person o$ t!e de$endant Man'e&, t!e sa,e is dee,ed "aived i$ not raised in
t!e ans"er or a ,otion to dis,iss. In an# case, respondent cannot c&ai, t!e de$ense since ?&ac: o$
5'risdiction over t!e person, .ein% s'.5ect to "aiver, is a persona& de$ense "!ic! can on&# .e asserted .#
t!e part# "!o can t!ere.# "aive it .# si&ence.?(*
C'risdiction over t!e person o$ a de$endant is ac<'ired t!ro'%! a va&id service o$ s',,onsD tria& co'rt did
not ac<'ire 5'risdiction over t!e person o$ Man'e& To&edo
In t!e $irst p&ace, 5'risdiction over t!e person o$ Man'e& "as never ac<'ired .# t!e tria& co'rt. A de$endant
is in$or,ed o$ a case a%ainst !i, "!en !e receives s',,ons. ?S',,ons is a "rit .# "!ic! t!e de$endant
is noti$ied o$ t!e action .ro'%!t a%ainst !i,. Service o$ s'c! "rit is t!e ,eans .# "!ic! t!e co'rt ac<'ires
5'risdiction over !is person.?42
In t!e case at .ar, t!e tria& co'rt did not ac<'ire 5'risdiction over t!e person o$ Man'e& since t!ere "as no
va&id service o$ s',,ons 'pon !i,, precise&# .eca'se !e "as a&read# dead even .e$ore t!e co,p&aint
a%ainst !i, and !is "i$e "as $i&ed in t!e tria& co'rt. T!e iss'es presented in t!is case are si,i&ar to t!ose
in t!e case o$ Sarsa.a v. Ida. de Te.4)
=!ere one o$ t!e na,ed de$endants "as a&read# dead at t!e ti,e o$ its $i&in%, s!o'&d .e dis,issed so t!at
t!e c&ai, ,a# .e p'rs'ed instead in t!e proceedin%s $or t!e sett&e,ent o$ t!e estate o$ t!e deceased
de$endant.
9 9 9 =e cannot co'ntenance petitioner/s ar%',ent t!at t!e co,p&aint a%ainst t!e ot!er de$endants
s!o'&d !ave .een dis,issed, considerin% t!at t!e RTC never ac<'ired 5'risdiction over t!e person o$
Sereno. T!e co'rt/s $ai&'re to ac<'ire 5'risdiction over one/s person is a de$ense "!ic! is persona& to t!e
person c&ai,in% it. O.vio's&#, it is no" i,possi.&e $or Sereno to invo:e t!e sa,e in vie" o$ !is deat!.
Neit!er can petitioner invo:e s'c! %ro'nd, on .e!a&$ o$ Sereno, so as to reap t!e .ene$it o$ !avin% t!e
case dis,issed a%ainst a&& o$ t!e de$endants. Fai&'re to serve s',,ons on Sereno/s person "i&& not .e a
ca'se $or t!e dis,issa& o$ t!e co,p&aint a%ainst t!e ot!er de$endants, considerin% t!at t!e# !ave .een
served "it! copies o$ t!e s',,ons and co,p&aints and !ave &on% s'.,itted t!eir respective responsive
p&eadin%s. In $act, t!e ot!er de$endants in t!e co,p&aint "ere %iven t!e c!ance to raise a&& possi.&e
de$enses and o.5ections persona& to t!e, in t!eir respective ,otions to dis,iss and t!eir s'.se<'ent
ans"ers.4( 7E,p!asis s'pp&ied.8
Hence, t!e S'pre,e Co'rt a$$ir,ed t!e dis,issa& .# t!e tria& co'rt o$ t!e co,p&aint a%ainst Sereno on&#.
6ased on t!e $ore%oin% prono'nce,ents, t!ere is no .asis $or dis,issin% t!e co,p&aint a%ainst
respondent !erein. T!'s, as a&read# e,p!asiJed a.ove, t!e tria& co'rt correct&# denied !er ,otion to
dis,iss.
On "!et!er or not t!e estate o$ Man'e&
To&edo is an indispensa.&e part#
An indispensa.&e part# is one "!o !as s'c! an interest in t!e controvers# or s'.5ect ,atter o$ a case t!at
a $ina& ad5'dication cannot .e ,ade in !is or !er a.sence, "it!o't in5'rin% or a$$ectin% t!at interest. He or
s!e is a part# "!o !as not on&# an interest in t!e s'.5ect ,atter o$ t!e controvers#, .'t ?an interest o$ s'c!
nat're t!at a $ina& decree cannot .e ,ade "it!o't a$$ectin% Et!atF interest or &eavin% t!e controvers# in
s'c! a condition t!at its $ina& deter,ination ,a# .e "!o&&# inconsistent "it! e<'it# and %ood conscience. It
!as a&so .een considered t!at an indispensa.&e part# is a person in "!ose a.sence t!ere cannot .e a
deter,ination .et"een t!e parties a&read# .e$ore t!e co'rt "!ic! is e$$ective, co,p&ete or e<'ita.&e.?
F'rt!er, an indispensa.&e part# is one "!o ,'st .e inc&'ded in an action .e$ore it ,a# proper&#
proceed.44
On t!e ot!er !and, a ?person is not an indispensa.&e part# i$ !is interest in t!e controvers# or s'.5ect
,atter is separa.&e $ro, t!e interest o$ t!e ot!er parties, so t!at it "i&& not necessari&# .e direct&# or
in5'rio's&# a$$ected .# a decree "!ic! does co,p&ete 5'stice .et"een t!e,. A&so, a person is not an
indispensa.&e part# i$ !is presence "o'&d ,ere&# per,it co,p&ete re&ie$ .et"een !i, or !er and t!ose
a&read# parties to t!e action, or i$ !e or s!e !as no interest in t!e s'.5ect ,atter o$ t!e action.? It is not a
s'$$icient reason to dec&are a person to .e an indispensa.&e part# si,p&# .eca'se !is or !er presence "i&&
avoid ,'&tip&e &iti%ations.40
App&#in% t!e $ore%oin% prono'nce,ents to t!e case at .ar, it is c&ear t!at t!e estate o$ Man'e& is not an
indispensa.&e part# to t!e co&&ection case, $or t!e si,p&e reason t!at t!e o.&i%ation o$ Man'e& and !is "i$e,
respondent !erein, is so&idar#.
In ot!er "ords, t!e co&&ection case can proceed and t!e de,ands o$ petitioner can .e satis$ied .#
respondent on&#, even "it!o't i,p&eadin% t!e estate o$ Man'e&. Conse<'ent&#, t!e estate o$ Man'e& is not
an indispensa.&e part# to petitioner/s co,p&aint $or s', o$ ,one#.
Ho"ever, t!e Co'rt o$ Appea&s, a%reein% "it! t!e contention o$ respondent, !e&d t!at t!e c&ai, o$
petitioner s!o'&d !ave .een $i&ed a%ainst t!e estate o$ Man'e& in accordance "it! Sections 0 and ; o$ R'&e
+; o$ t!e R'&es o$ Co'rt.
Constr'in% Section ;*+ o$ t!e Code o$ Civi& Proced're $ro, "!ence ESection ;, R'&e +-F "as ta:en, t!is
Co'rt !e&d t!at "!ere t"o persons are .o'nd in so&id', $or t!e sa,e de.t and one o$ t!e, dies, t!e
"!o&e inde.tedness can .e proved a%ainst t!e estate o$ t!e &atter, t!e decedent/s &ia.i&it# .ein% a.so&'te
and pri,ar#D 9 9 9. It is evident $ro, t!e $ore%oin% t!at Section ; o$ R'&e +- provides t!e proced're
s!o'&d t!e creditor desire to %o a%ainst t!e deceased de.tor, .'t t!ere is certain&# not!in% in t!e said
provision ,a:in% co,p&iance "it! s'c! proced're a condition precedent .e$ore an ordinar# action a%ainst
t!e s'rvivin% so&idar# de.tors, s!o'&d t!e creditor c!oose to de,and pa#,ent $ro, t!e &atter, co'&d .e
entertained to t!e e9tent t!at $ai&'re to o.serve t!e sa,e "o'&d deprive t!e co'rt 5'risdiction to ta:e
co%niJance o$ t!e action a%ainst t!e s'rvivin% de.tors. Upon t!e ot!er !and, t!e Civi& Code e9press&#
a&&o"s t!e creditor to proceed a%ainst an# one o$ t!e so&idar# de.tors or so,e or a&& o$ t!e,
si,'&taneo's&#. T!ere is, t!ere$ore, not!in% i,proper in t!e creditor/s $i&in% o$ an action a%ainst t!e
s'rvivin% so&idar# de.tors a&one, instead o$ instit'tin% a proceedin% $or t!e sett&e,ent o$ t!e estate o$ t!e
deceased de.tor "!erein !is c&ai, co'&d .e $i&ed.
As correct&# ar%'ed .# petitioner, i$ Section ;, R'&e +; o$ t!e Revised R'&es o$ Co'rt "ere app&ied &itera&&#,
Artic&e )3); o$ t!e Ne" Civi& Code "o'&d, in e$$ect, .e repea&ed since 'nder t!e R'&es o$ Co'rt, petitioner
!as no c!oice .'t to proceed a%ainst t!e estate o$ Et!e deceased de.torF on&#. O.vio's&#, t!is provision
di,inis!es t!e Ecreditor/sF ri%!t 'nder t!e Ne" Civi& Code to proceed a%ainst an# one, so,e or a&& o$ t!e
so&idar# de.tors. S'c! a constr'ction is not sanctioned .# princip&e, "!ic! is too "e&& sett&ed to re<'ire
citation, t!at a s'.stantive &a" cannot .e a,ended .# a proced'ra& r'&e. Ot!er"ise stated, Section ;, R'&e
+; o$ t!e Revised R'&es o$ Co'rt cannot .e ,ade to prevai& over Artic&e )3); o$ t!e Ne" Civi& Code, t!e
$or,er .ein% ,ere&# proced'ra&, "!i&e t!e &atter, s'.stantive.
6ased on t!e $ore%oin%, t!e estate o$ Man'e& is not an indispensa.&e part# and t!e case can proceed as
a%ainst respondent on&#. T!at petitioner opted to co&&ect $ro, respondent and not $ro, t!e estate o$
Man'e& is evidenced .# its opposition to respondent/s ,otion to dis,iss assertin% t!at t!e case, as
a%ainst !er, s!o'&d .e dis,issed so t!at petitioner can proceed a%ainst t!e estate o$ Man'e&.
On "!et!er or not t!e inc&'sion o$ Man'e& as
part# de$endant is a ,is5oinder o$ part#
Section )) o$ R'&e ( o$ t!e R'&es o$ Co'rt states t!at ?EnFeit!er ,is5oinder nor non15oinder o$ parties is
%ro'nd $or dis,issa& o$ an action. Parties ,a# .e dropped or added .# order o$ t!e co'rt on ,otion o$ an#
part# or on its o"n initiative at an# sta%e o$ t!e action and on s'c! ter,s as are 5'st. An# c&ai, a%ainst a
,is5oined part# ,a# .e severed and proceeded "it! separate&#.?
6ased on t!e &ast sentence o$ t!e a$ore1<'oted provision o$ &a", a ,is5oined part# ,'st !ave t!e capacit#
to s'e or .e s'ed in t!e event t!at t!e c&ai, .# or a%ainst t!e ,is5oined part# is p'rs'ed in a separate
case. In t!is case, t!ere$ore, t!e inc&'sion o$ Man'e& in t!e co,p&aint cannot .e considered a ,is5oinder,
as in $act, t!e action "o'&d !ave proceeded a%ainst !i, !ad !e .een a&ive at t!e ti,e t!e co&&ection case
"as $i&ed .# petitioner. T!is .ein% t!e case, t!e re,ed# provided .# Section )) o$ R'&e ( does not o.tain
!ere. T!e na,e o$ Man'e& as part#1de$endant cannot si,p&# .e dropped $ro, t!e case. Instead, t!e
proced're ta:en .# t!e Co'rt in Sarsa.a v. Ida. de Te,03 "!ose $acts, as ,entioned ear&ier, rese,.&e
t!ose o$ t!is case, s!o'&d .e $o&&o"ed !erein. T!ere, t!e S'pre,e Co'rt a%reed "it! t!e tria& co'rt "!en
it reso&ved t!e iss'e o$ 5'risdiction over t!e person o$ t!e deceased Sereno in t!is
"isecra&avvon&ine&a"&i.rar#
As correct&# pointed .# de$endants, t!e Honora.&e Co'rt !as not ac<'ired 5'risdiction over t!e person o$
Patricio Sereno since t!ere "as indeed no va&id service o$ s',,ons inso$ar as Patricio Sereno is
concerned. Patricio Sereno died .e$ore t!e s',,ons, to%et!er "it! a cop# o$ t!e co,p&aint and its
anne9es, co'&d .e served 'pon !i,.
Ho"ever, t!e $ai&'re to e$$ect service o$ s',,ons 'nto Patricio Sereno, one o$ t!e de$endants !erein,
does not render t!e action @ISMISSI6LE, considerin% t!at t!e t!ree 7(8 ot!er de$endants, 9 9 9, "ere
va&id&# served "it! s',,ons and t!e case "it! respect to t!e ans"erin% de$endants ,a# sti&& proceed
independent&#. 6e it reca&&ed t!at t!e t!ree 7(8 ans"erin% de$endants !ave previo's&# $i&ed a Motion to
@is,iss t!e Co,p&aint "!ic! "as denied .# t!e Co'rt.
Hence, on&# t!e case a%ainst Patricio Sereno "i&& .e @ISMISSE@ and t!e sa,e ,a# .e $i&ed as a c&ai,
a%ainst t!e estate o$ Patricio Sereno, .'t t!e case "it! respect to t!e t!ree 7(8 ot!er acc'sed EsicF "i&&
proceed. 7E,p!asis s'pp&ied.80(
As a res'&t, t!e case, as a%ainst Man'e&, ,'st .e dis,issed.
Since t!e proper co'rse o$ action a%ainst t!e "ron%$'& inc&'sion o$ Man'e& as part#1de$endant is t!e
dis,issa& o$ t!e case as a%ainst !i,, t!'s did t!e tria& co'rt err "!en it ordered t!e s'.stit'tion o$ Man'e&
.# !is !eirs. S'.stit'tion is proper on&# "!ere t!e part# to .e s'.stit'ted died d'rin% t!e pendenc# o$ t!e
case, as e9press&# provided $or .# Section );, R'&e ( o$ t!e R'&es o$ Co'rt, "!ic!
statescra&avvon&ine&a"&i.rar#
@eat! o$ part#Dd't# o$ co'nse&. > =!enever a part# to a pendin% action dies, and t!e c&ai, is not t!ere.#
e9tin%'is!ed, it s!a&& .e t!e d't# o$ !is co'nse& to in$or, t!e co'rt "it!in t!irt# 7(28 da#s a$ter s'c! deat!
o$ t!e $act t!ereo$, and to %ive t!e na,e and address o$ !is &e%a& representative or representatives. 9 9 9
T!e !eirs o$ t!e deceased ,a# .e a&&o"ed to .e s'.stit'ted $or t!e deceased, "it!o't re<'irin% t!e
appoint,ent o$ an e9ec'tor or ad,inistrator 9 9 9.
T!e co'rt s!a&& $ort!"it! order said &e%a& representative or representatives to appear and .e s'.stit'ted
"it!in a period o$ t!irt# 7(28 da#s $ro, notice. 7E,p!asis s'pp&ied.8
Here, since Man'e& "as a&read# dead at t!e ti,e o$ t!e $i&in% o$ t!e co,p&aint, t!e co'rt never ac<'ired
5'risdiction over !is person and, in e$$ect, t!ere "as no part# to .e s'.stit'ted.
=HEREFORE, t!e petition is GRANTE@. T!e @ecision dated 3+ Fe.r'ar# 322; and t!e Reso&'tion dated
) A'%'st 322; o$ t!e Co'rt o$ Appea&s in CA1G.R. SP No. ++0+; are REIERSE@ and SET ASI@E. T!e
Orders o$ t!e Re%iona& Tria& Co'rt dated + Nove,.er 3224 and 33 @ece,.er 3224, respective&#, in Civi&
Case No. *-1+;;-3, are REINSTATE@. T!e Re%iona& Tria& Co'rt, 6ranc! 34, Mani&a is !ere.#
@IRECTE@ to proceed "it! t!e tria& o$ Civi& Case No. *-1+;;-3 a%ainst respondent Lo&ita G. To&edo on&#,
in accordance "it! t!e a.ove prono'nce,ents o$ t!e Co'rt, and to decide t!e case "it! dispatc!.
EL 6LANCO ESPAKOL1FILINO, P&ainti$$1Appe&&ee, v. IICENTE PALANCA, ad,inistrator o$ t!e estate o$
En%racio Pa&anca Tan<'in#en%, @e$endant1Appe&&ant.
T!is action "as instit'ted 'pon Marc! (), )*2+, .# ?E& 6anco EspaLo&1Fi&ipino? to $orec&ose a ,ort%a%e
'pon vario's parce&s o$ rea& propert# sit'ated in t!e cit# o$ Mani&a. T!e ,ort%a%e in <'estion is dated C'ne
);, )*2;, and "as e9ec'ted .# t!e ori%ina& de$endant !erein, En%racio Pa&anca Tan<'in#en% #
Li,<'in%co, as sec'rit# $or a de.t o"in% to !i, to t!e .an:.
A$ter t!e e9ec'tion o$ t!is instr',ent .# t!e ,ort%a%or, !e ret'rned to C!ina, "!ic! appears to !ave .een
!is native co'ntr#D and !e t!ere died, 'pon Can'ar# 3*,)*)2, "it!o't a%ain ret'rnin% to t!e P!i&ippine
Is&ands.
As t!e de$endant "as a nonresident at t!e ti,e o$ t!e instit'tion o$ t!e present action, it "as necessar# $or
t!e p&ainti$$ in t!e $orec&os're proceedin% to %ive notice to t!e de$endant .# p'.&ication p'rs'ant to section
(** o$ t!e Code o$ Civi& Proced're. An order $or p'.&ication "as accordin%&# o.tained $ro, t!e co'rt, and
p'.&ication "as ,ade in d'e $or, in a ne"spaper o$ t!e cit# o$ Mani&a. At t!e sa,e ti,e t!at t!e order o$
t!e co'rt "as entered directin% t!at p'.&ication s!o'&d .e ,ade in a ne"spaper, t!e co'rt $'rt!er directed
t!at t!e c&er: o$ t!e co'rt s!o'&d deposit in t!e post o$$ice in a sta,ped enve&ope a cop# o$ t!e s',,ons
and co,p&aint directed to t!e de$endant at !is &ast p&ace o$ residence, to "it, t!e cit# o$ A,o#, in t!e
E,pire o$ C!ina.
=!et!er t!e c&er: co,p&ied "it! t!is order does not a$$ir,ative&# appear. T!ere is, !o"ever, a,on% t!e
papers pertainin% to t!is case, an a$$idavit, dated Apri& 4, )*2+, si%ned .# 6ernardo C!an # Garcia, an
e,p&o#ee o$ t!e attorne#s $or t!e .an:, s!o"in% t!at 'pon t!at date !e !ad deposited in Mani&a post1
o$$ice a re%istered &etter, addressed to En%racio Pa&anca Tan<'in#en%, at Mani&a, containin% copies o$ t!e
co,p&aint, t!e p&ainti$$/s a$$idavit, t!e s',,ons, and t!e order o$ t!e co'rt directin% p'.&ication as
a$oresaid. It appears $ro, t!e post,aster/s receipt t!at 6ernardo pro.a.&# 'sed an enve&oped o.tained
$ro, t!e c&er:/s o$$ice, as t!e receipt p'rports to s!o" t!at t!e &etter e,anated $ro, said o$$ice.
T!e ca'se proceeded in 's'a& co'rse in t!e Co'rt o$ First InstanceD and t!e de$endant not !avin%
appeared, 5'd%,ent "as, 'pon C'&# 3, )*2+, ta:en a%ainst !i, .# de$a'&t. Upon C'&# (, )*2+, a decision
"as rendered in $avor o$ t!e p&ainti$$.
A.o't seven #ears a$ter t!e con$ir,ation o$ t!is sa&e, or to .e precise, 'pon C'ne 30, )*)0, a ,otion "as
,ade in t!is ca'se .# Iicente Pa&anca, as ad,inistrator o$ t!e estate o$ t!e ori%ina& de$endant, En%racio
Pa&anca Tan<'in#en% # Li,<'in%co, "!erein t!e app&icant re<'ested t!e co'rt to set aside t!e order o$
de$a'&t o$ C'&# 3, )*2+, and t!e 5'd%,ent rendered 'pon C'&# (, )*2+, and to vacate a&& t!e proceedin%s
s'.se<'ent t!ereto. T!e .asis $or t!is app&ication, as set $ort! in t!e ,otion itse&$, "as t!at t!e order o$
de$a'&t and t!e 5'd%,ent rendered t!ereon "ere void .eca'se t!e co'rt !ad never ac<'ired 5'risdiction
over t!e de$endant or over t!e s'.5ect o$ t!e action.
At t!e !earin% in t!e co'rt .e&o" t!e app&ication to vacate t!e 5'd%,ent "as denied, and $ro, t!is action
o$ t!e co'rt Iicente Pa&anca, as ad,inistrator o$ t!e estate o$ t!e ori%ina& de$endant, !as appea&ed. No
ot!er $eat're o$ t!e case is !ere 'nder consideration t!an s'c! as is re&ated to t!e action o$ t!e co'rt 'pon
said ,otion.
T!e case presents severa& <'estions o$ i,portance, "!ic! "i&& .e disc'ssed in "!at appears to .e t!e
se<'ence o$ ,ost convenient deve&op,ent. In t!e $irst part o$ t!is opinion "e s!a&&, $or t!e p'rpose o$ t!e
ar%',ent, ass',e t!at t!e c&er: o$ t!e Co'rt o$ First Instance did not o.e# t!e order o$ t!e co'rt in t!e
,atter o$ ,ai&in% t!e papers "!ic! !e "as directed to send to t!e de$endant in A,o#D and in t!is
connection "e s!a&& consider, $irst, "!et!er t!e co'rt ac<'ired t!e necessar# 5'risdiction to ena.&e it to
proceed "it! t!e $orec&os're o$ t!e ,ort%a%e and, second&#, "!et!er t!ose proceedin%s "ere cond'cted
in s'c! ,anner as to constit'te d'e process o$ &a".
T!e "ord ?5'risdiction,? as app&ied to t!e $ac'&t# o$ e9ercisin% 5'dicia& po"er, is 'sed in severa& di$$erent,
t!o'%! re&ated, senses since it ,a# !ave re$erence 7)8 to t!e a't!orit# o$ t!e co'rt to entertain a partic'&ar
:ind o$ action or to ad,inister a partic'&ar :ind o$ re&ie$, or it ,a# re$er to t!e po"er o$ t!e co'rt over t!e
parties, 738 over t!e propert# "!ic! is t!e s'.5ect to t!e &iti%ation.
T!e soverei%n a't!orit# "!ic! or%aniJes a co'rt deter,ines t!e nat're and e9tent o$ its po"ers in %enera&
and t!'s $i9es its co,petenc# or 5'risdiction "it! re$erence to t!e actions "!ic! it ,a# entertain and t!e
re&ie$ it ,a# %rant.
C'risdiction over t!e person is ac<'ired .# t!e vo&'ntar# appearance o$ a part# in co'rt and !is
s'.,ission to its a't!orit#, or it is ac<'ired .# t!e coercive po"er o$ &e%a& process e9erted over t!e
person.
C'risdiction over t!e propert# "!ic! is s'.5ect o$ &iti%ation ,a# res'&t eit!er $ro, a seiJ're o$ t!e propert#
'nder &e%a& process, "!ere.# it is .ro'%!t into t!e act'a& c'stod# o$ t!e &a", or it ,a# res'&t $ro, t!e
instit'tion o$ &e%a& proceedin%s "!erein, 'nder specia& provisions o$ &a", t!e po"er o$ t!e co'rt over t!e
propert# is reco%niJed and ,ade e$$ective
In t!e ter,ino&o%# o$ A,erican &a" t!e action to $orec&ose a ,ort%a%e is said to .e a proceedin% <'asi in
re,, .# "!ic! is e9pressed t!e idea t!at "!i&e it is not strict&# spea:in% an action in re, #et it parta:es o$
t!at nat're and is s'.stantia&&# s'c!. T!e e9pression, ?action in re,/ is, in its narro" app&ication, 'sed on&#
"it! re$erence to certain proceedin%s in co'rts o$ ad,ira&t# "!erein t!e propert# a&one is treated as
responsi.&e $or t!e c&ai, or o.&i%ation 'pon "!ic! t!e proceedin%s are .ased. T!e action <'asi in re,
di$$ers $ro, t!e tr'e action in re, in t!e circ',stance t!at in t!e $or,er an individ'a& is na,ed as
de$endant, and t!e p'rpose o$ t!e proceedin% is to s'.5ect !is interest t!erein to t!e o.&i%ation or &ien
.'rdenin% t!e propert#. A&& proceedin%s !avin% $or t!eir so&e o.5ect t!e sa&e or ot!er disposition o$ t!e
propert# o$ t!e de$endant, "!et!er .# attac!,ent, $orec&os're, or ot!er $or, o$ re,ed#, are in %enera&
"a# t!'s desi%nated. T!e 5'd%,ent entered in t!ese proceedin%s is conc&'sive on&# .et"een t!e parties.
In spea:in% o$ t!e proceedin% to $orec&ose a ,ort%a%e t!e a't!or o$ a "e&&1:no"n treatise, !as said
?T!o'%! no,ina&&# a%ainst persons, s'c! s'its are to vindicate &iensD t!e# proceed 'pon seiJ'reD t!e#
treat propert# as pri,ari&# inde.tedD and, "it! t!e <'a&i$ication a.ove1,entioned, t!e# are s'.stantia&&#
propert# actions. In t!e civi& &a", t!e# are st#&ed !#pot!ecar# actions, and t!eir so&e o.5ect is t!e
en$orce,ent o$ t!e &ien a%ainst t!e resD in co,,on &a", t!e# "o'&d .e di$$erent i$ c!ancer# did not treat
t!e conditiona& conve#ance as a ,ere !#pot!ecation, and t!e creditor/s ri%!t as an e<'ita.&e &ienD so, in
.ot!, t!e s'it is a rea& action so $ar as it is a%ainst propert#, and see:s t!e 5'dicia& reco%nition o$ a propert#
de.t, and an order $or t!e sa&e o$ res.? 7=ap&es, Proceedin%s In Re,. Sec. ;2-.8
It is tr'e t!at in proceedin%s o$ t!is c!aracter, i$ t!e de$endant $or "!o, d'p&ication is ,ade appears, t!e
action .eco,es as to !i, a persona& action and is cond'cted as s'c!. T!is, !o"ever, does not a$$ect t!e
proposition t!at "!ere t!e de$endant $ai&s to appear t!e action is <'asi in re,D and it s!o'&d t!ere$ore .e
considered "it! re$erence to t!e princip&es %overnin% actions in re,.
T!ere is an instr'ctive ana&o%# .et"een t!e $orec&os're proceedin% and an action o$ attac!,ent,
concernin% "!ic! t!e S'pre,e Co'rt o$ t!e United States !as 'sed t!e $o&&o"in% &an%'a%e
?I$ t!e de$endant appears, t!e ca'se .eco,es ,ain&# a s'it in persona,, "it! t!e added incident, t!at t!e
propert# attac!ed re,ains &ia.&e, 'nder t!e contro& o$ t!e co'rt, to ans"er to an# de,and "!ic! ,a# .e
esta.&is!ed a%ainst t!e de$endant .# t!e $ina& 5'd%,ent o$ t!e co'rt. 6't, i$ t!ere is no appearance o$ t!e
de$endant, and no service o$ process on !i,, t!e case .eco,es, in its essentia& nat're, a proceedin% in
re,, t!e on&# e$$ect o$ "!ic! is to s'.5ect t!e propert# attac!ed to t!e pa#,ent o$ t!e de,and "!ic! t!e
co'rt ,a# $ind to .e d'e to t!e p&ainti$$.? 7Cooper v. Re#no&ds, )2 =a&&., (2+.8
In an ordinar# attac!,ent proceedin%s, i$ t!e de$endant is not persona&&# served, t!e pre&i,inar# seiJ're is
to .e considered necessar# in order to con$er 5'risdiction 'pon t!e co'rt. In t!is case t!e &ien on t!e
propert# is ac<'ired .# t!e seiJ'reD and t!e p'rpose o$ t!e proceedin%s is to s'.5ect t!e propert# to t!at
&ien. I$ an &ien a&read# e9ists, "!et!er created .# ,ort%a%e, contract, or stat'te, t!e pre&i,inar# seiJ're is
not necessar#D and t!e co'rt proceeds to en$orce s'c! &ien in t!e ,anner provided .# &a" precise&# as
t!o'%! t!e propert# !ad .een seiJed 'pon attac!,ent. 7Ro&&er v. Ho&&#, )-; U.S., (*+, 420D 44 L. ed.,
032.8 It res'&ts t!at ,ere circ',stance t!at an attac!,ent t!e propert# ,a# .e seiJed at t!e inception o$
t!e proceedin%s, "!i&e in t!e $orec&os're s'it it is not ta:en into &e%a& c'stod# 'nti& t!e ti,e co,es $or t!e
sa&e, does not ,ateria&&# a$$ect t!e $'nda,enta& princip&e invo&ved in .ot! cases, "!ic! is t!at t!e co'rt is
!ere e9ercisin% a 5'risdiction over t!e propert# in a proceedin% directed essentia&&# in re,.
$assing now to a consideration of the jurisdiction of the #ourt of %irst Instance in a mortgage
foreclosure, it is evident that the court derives its authority to entertain the action primarily from
the statutes organi&ing the court. The jurisdiction of the court, in this most general sense, over the
cause of action is obvious and re"uires no comment. 'urisdiction over the person on the
defendant, if ac"uired at all in such an action, is obtained by the voluntary submission of the
defendant or by the personal service of process upon him within the territory where the process is
valid. If, however, the defendant is non(resident and, remaining beyond the range of the personal
process of the court, refuses to come in voluntarily, the court never ac"uires jurisdiction over the
person at all. )ere the property itself is in fact the sole thing which is impleaded and is the
responsible object which is the subject of the exercise of judicial power. It follows that the
jurisdiction of the court in such case is based exclusively on the power which, under the law, it
possesses over the property; and any discussion relative to the jurisdiction of the court over the
person of the defendant is entirely apart from the case. The jurisdiction of the court over the
property, considered as the exclusive object of such an action, is evidently based upon the
following conditions and considerations, namely * +,- that the property is located within the
district; +.- that the purpose of the litigation is to subject the property by sale to an obligation
fixed upon it by the mortgage; and +/- that the court at a proper stage of the proceedings takes the
property into its custody, if necessary, and exposes it to sale for the purpose of satisfying the
mortgage debt. n obvious corollary is that no other relief can be granted in this proceeding than
such as can be enforce enforced against the property.
=e ,a# t!en, $ro, t!at !as .een stated, $or,'&ate t!e $o&&o"in% propositions re&ative to t!e $orec&os're
proceedin% a%ainst t!e propert# o$ a nonresident ,ort%a%or "!o $ai&s to co,e in and s'.,it !i,se&$
persona&&# to t!e 5'risdiction o$ t!e co'rt 7)8 T!at t!e 5'risdiction o$ t!e co'rt is derived $ro, t!e po"er
"!ic! it possesses over t!e propert#D 7II8 t!at 5'risdiction over t!e person is not ac<'ired and is
nonessentia&D 7III8 t!at t!e re&ie$ %ranted .# t!e co'rt ,'st .e &i,ited to s'c! as can .e en$orced a%ainst
t!e propert# itse&$.
In t!e &i%!t o$ t!at decision, and o$ ot!er decisions "!ic! !ave s'.se<'ent&# .een rendered in t!at and
ot!er co'rts, t!e proposition t!at t!e 5'risdiction over t!e person cannot .e t!'s ac<'ired .# p'.&ication
and notice is no &on%er open to <'estionD and it is no" $'&&# esta.&is!ed t!at a persona& 5'd%,ent 'pon
constr'ctive or s'.stit'ted service a%ainst a nonresident "!o does not appear is "!o&&# inva&id. T!is
doctrine app&ies to a&& :inds o$ constr'ctive or s'.stit'ted process, inc&'din% service .# p'.&ication and
persona& service o'tside o$ t!e 5'risdiction in "!ic! t!e 5'd%,ent is renderedD and t!e on&# e9ception
see,s to .e $o'nd in t!e case "!ere t!e nonresident de$endant !as e9press&# or i,p&ied&# consented to
t!e ,ode o$ service. 7Note to Ra!er v. Ra!er, (0 L.R.A. EN.S. F, 3*3D see a&so 02 L.R.A., 0+0D (0 L.R.A.,
EN.S. F ()3.8
T!e idea 'pon "!ic! t!e decision in Penno#er v. Ne$$ 7s'pra8 proceeds is t!at t!e process $ro, t!e
tri.'na&s o$ one State cannot r'n into ot!er States or co'ntries and t!at d'e process o$ &a" re<'ires t!at
t!e de$endant s!a&& .e .ro'%!t 'nder t!e po"er o$ t!e co'rt .# service o$ process "it!in t!e State, or .#
!is vo&'ntar# appearance, in order to a't!oriJe to co'rt to pass 'pon t!e <'estion o$ !is persona& &ia.i&it#.
T!e doctrine esta.&is!ed .# t!e S'pre,e Co'rt o$ t!e United States on t!is point, .ein% .ased 'pon t!e
constit'tiona& conception o$ d'e process o$ &a", is .indin% 'pon t!e co'rts o$ t!e P!i&ippine Is&ands.
Invo&ved in t!is decision is t!e princip&e t!at t!e proceedin%s in re, or <'asi in re, a%ainst a nonresident
"!o is not served persona&&# "it!in t!e state, and "!o does not appear, t!e re&ie$ ,'st .e con$ined to t!e
res, and t!e co'rt cannot &a"$'&&# render a persona& 5'd%,ent a%ainst !i,. 7@e"e# v. @es Moines, )-(
U.S., )*(D 4( L. ed., ;;0D Heidritter v. E&iJa.et! Oi& C&ot! Co., ))3 U.S., 3*4D 3+ L. ed., -3*.8 T!ere$ore in
an action to $orec&ose a ,ort%a%e a%ainst a nonresident, 'pon "!o, service !as .een e$$ected
e9c&'sive&# .# p'.&ication, no persona& 5'd%,ent $or t!e de$icienc# can .e entered. 7Latta v. T'tton, )33
Ca&., 3-*D 6&',.er% v. 6irc!, ** Ca&., 4);.8
It is s'%%ested in t!e .rie$ o$ t!e appe&&ant t!at t!e 5'd%,ent entered in t!e co'rt .e&o" o$$ends a%ainst
t!e princip&e 5'st stated and t!at t!is 5'd%,ent is void .eca'se t!e co'rt in $act entered a persona&
5'd%,ent a%ainst t!e a.sent de.tor $or t!e $'&& a,o'nt o$ t!e inde.tedness sec'red .# t!e ,ort%a%e. =e
do not so interpret t!e 5'd%,ent.
In a $orec&os're proceedin% a%ainst a nonresident o"ner it is necessar# $or t!e co'rt, as in a&& cases o$
$orec&os're, to ascertain t!e a,o'nt d'e, as prescri.ed in section 30; o$ t!e Code o$ Civi& Proced're, and
to ,a:e an order re<'irin% t!e de$endant to pa# t!e ,one# into co'rt. T!is step is a necessar# prec'rsor
o$ t!e order o$ sa&e. In t!e present case t!e 5'd%,ent "!ic! "as entered contains t!e $o&&o"in%
"ords5%cc!anro.&es.co,.p!
T!e conc&'sion 'pon t!is p!ase is t!at "!atever ,a# .e t!e e$$ect in ot!er respects o$ t!e $ai&'re o$ t!e
c&er: o$ t!e Co'rt o$ First Instance to ,ai& t!e proper papers to t!e de$endant in A,o#, C!ina, s'c!
irre%'&arit# co'&d in no "ise i,pair or de$eat t!e 5'risdiction o$ t!e co'rt, $or in o'r opinion t!at 5'risdiction
rests 'pon a .asis ,'c! ,ore sec're t!an "o'&d .e s'pp&ied .# an# $or, o$ notice t!at co'&d .e %iven to
a resident o$ a $orei%n co'ntr#.
6e$ore &eavin% t!is .ranc! o$ t!e case, "e "is! to o.serve t!at "e are $'&&# a"are t!at ,an# reported
cases can .e cited in "!ic! it is ass',ed t!at t!e <'estion o$ t!e s'$$icienc# o$ p'.&ication or notice in a
case o$ t!is :ind is a <'estion a$$ectin% t!e 5'risdiction o$ t!e co'rt, and t!e co'rt so,eti,es said to
ac<'ire 5'risdiction .# virt'e o$ t!e p'.&ication. T!is p!raseo&o%# "as 'ndo'.ted&# ori%ina&&# adopted .#
t!e co'rt .eca'se o$ t!e ana&o%# .et"een service .# p'.&ication and persona& service o$ process 'pon t!e
de$endantD and, as !as a&read# .een s'%%ested, prior to t!e decision o$ Penno#er v. Ne$$ 7s'pra8 t!e
di$$erence .et"een t!e &e%a& e$$ects o$ t!e t"o $or,s o$ service "as o.sc're. It is accordin%&# not
s'rprisin% t!at t!e ,odes o$ e9pression "!ic! !ad a&read# .een ,o&ded into &e%a& tradition .e$ore t!at
case "as decided !ave .een .ro'%!t do"n to t!e present da#. 6't it is c&ear t!at t!e &e%a& princip&e !ere
invo&ved is not e$$ected .# t!e pec'&iar &an%'a%e in "!ic! t!e co'rts !ave e9po'nded t!eir ideas.
=e no" proceed to a disc'ssion o$ t!e <'estion "!et!er t!e s'pposed irre%'&arit# in t!e proceedin%s "as
o$ s'c! %ravit# as to a,o'nt to a denia& o$ t!at ?d'e process o$ &a"? "!ic! "as sec'red .# t!e Act o$
Con%ress in $orce in t!ese Is&ands at t!e ti,e t!is ,ort%a%e "as $orec&osed. 7Act o$ C'&# ), )*23, sec. 0.8
In dea&in% "it! <'estions invo&vin% t!e app&ication o$ t!e constit'tiona& provisions re&atin% to d'e process
o$ &a" t!e S'pre,e Co'rt o$ t!e United States !as re$rained $ro, atte,ptin% to de$ine "it! precision t!e
,eanin% o$ t!at e9pression, t!e reason .ein% t!at t!e idea e9pressed t!erein is app&ica.&e 'nder so ,an#
diverse conditions as to ,a:e an# atte,pt at precise de$inition !aJardo's and 'npro$ita.&e. As app&ied to
a 5'dicia& proceedin%, !o"ever, it ,a# .e &aid do"n "it! certaint# t!at t!e re<'ire,ent o$ d'e process is
satis$ied i$ t!e $o&&o"in% conditions are present, na,e&#D 7)8 T!ere ,'st .e a co'rt o$ tri.'na& c&ot!ed "it!
5'dicia& po"er to !ear and deter,ine t!e ,atter .e$ore itD 738 5'risdiction ,'st .e &a"$'&&# ac<'ired over t!e
person o$ t!e de$endant or over t!e propert# "!ic! is t!e s'.5ect o$ t!e proceedin%D 7(8 t!e de$endant
,'st .e %iven an opport'nit# to .e !eardD and 748 5'd%,ent ,'st rendered 'pon &a"$'& !earin%.
Passin% at once to t!e re<'isite t!at t!e de$endant s!a&& !ave an opport'nit# to .e !eard, "e o.serve t!at
in a $orec&os're case so,e noti$ication o$ t!e proceedin%s to t!e nonresident o"ner, prescri.in% t!e ti,e
"it!in "!ic! appearance ,'st .e ,ade, is ever#"!ere reco%niJed as essentia&. To ans"er t!is necessit#
t!e stat'tes %enera&&# provide $or p'.&ication, and 's'a&&# in addition t!ereto, $or t!e ,ai&in% o$ notice to
t!e de$endant, i$ !is residence is :no"n. T!o'%! co,,on&# ca&&ed constr'ctive, or s'.stit'ted service,
s'c! noti$ication does not constit'te a service o$ process in an# tr'e sense. It is ,ere&# a ,eans provided
.# &a" "!ere.# t!e o"ner ,a# .e ad,onis!ed .# !is propert# is t!e s'.5ect o$ 5'dicia& proceedin%s and
t!at it is 'nc',.ent 'pon !i, to ta:e s'c! steps as !e sees $it to protect it. In spea:in% o$ notice o$ t!is
c!aracter a distin%'is!ed ,aster o$ constit'tiona& &a" !as 'sed t!e $o&&o"in% &an%'a%e
?. . . i$ t!e o"ners are na,ed in t!e proceedin%s, and persona& notice is provided $or, it is rat!er $ro,
tenderness o$ t!eir interests, and in order to ,a:e s're t!at t!e opport'nit# $or a !earin% s!a&& .e &ost to
t!e,, t!an $ro, an# necessit# t!at t!e case s!a&& ass',e t!at $or,.? 7Coo&e# on Ta9ation E3d. ed. F, 03-,
<'oted in Lei%! v. Green, )*( U.S., -*, +2.8
It "i&& .e o.served t!at t!is ,ode o$ noti$ication does not invo&ve an# a.so&'te ass'rance t!at t!e a.sent
o"ner s!a&& t!ere.# receive act'a& notice. T!e periodica& containin% t!e p'.&ication ,a# never in $act
co,e to !is !ands, and t!e c!ances t!at !e s!o'&d discover t!e notice ,a# o$ten .e ver# s&i%!t. Even
"!ere notice is sent .# ,ai& t!e pro.a.i&it# o$ !is receivin% it, t!o'%! ,'c! increased, is dependent 'pon
t!e correctness o$ t!e address to "!ic! it is $or"arded as "e&& as 'pon t!e re%'&arit# and sec'rit# o$ t!e
,ai& service. It "i&& .e noted, $'rt!er,ore, t!at t!e provision o$ o'r &a" re&ative to t!e ,ai&in% o$ notice does
not a.so&'te&# re<'ire t!e ,ai&in% o$ notice 'nconditiona&&# and in ever# event, .'t on&# in t!e case "!ere
t!e de$endant/s residence is :no"n. In t!e &i%!t o$ a&& t!ese $acts, it is evident t!at t!e act'a& notice to t!e
de$endant in cases o$ t!is :ind is not, 'nder t!e &a", to .e considered a.so&'te&# necessar#.
T!e idea 'pon "!ic! t!e &a" proceeds in reco%niJin% t!e e$$icac# o$ a ,eans o$ noti$ication "!ic! ,a# $a&&
s!ort o$ act'a& notice is apparent&# t!is Propert# is a&"a#s ass',ed to .e in t!e possession o$ its o"ner,
in person or .# a%entD and !e ,a# .e sa$e&# !e&d, 'nder certain conditions, to .e a$$ected "it! :no"&ed%e
t!at proceedin%s !ave .een instit'ted $or its conde,nation and sa&e.
?It is t!e d't# o$ t!e o"ner o$ rea& estate, "!o is a nonresident, to ta:e ,eas'res t!at in so,e "a# !e
s!a&& .e represented "!en !is propert# is ca&&ed into re<'isition, and i$ !e $ai&s to do t!is and $ai&s to %et
notice .# t!e ordinar# p'.&ications "!ic! !ave 's'a&&# .een re<'ired in s'c! cases, it is !is ,is$ort'ne,
and !e ,'st a.ide t!e conse<'ences.? 7; R.C.L., sec. 440 Ep.402F8.
It !as .een "e&& said .# an A,erican co'rt5%cc!anro.&es.co,.p!
?I$ proper&# o$ a nonresident cannot .e reac!ed .# &e%a& process 'pon constr'ctive notice, t!en o'r
stat'tes "ere passed in vain, and are ,ere e,pt# &e%is&ative dec&arations, "it!o't eit!er $orce, or
,eanin%D $or i$ t!e person is not "it!in t!e 5'risdiction o$ t!e co'rt, no persona& 5'd%,ent can .e rendered,
and i$ t!e 5'd%,ent cannot operate 'pon t!e propert#, t!en no e$$ective 5'd%,ent can .e rendered, so t!at
t!e res'&t "o'&d .e t!at t!e co'rts "o'&d .e po"er&ess to assist a citiJen a%ainst a nonresident. S'c! a
res'&t "o'&d .e a dep&ora.&e one.? 7A'ar& v. A..ett, )23 Ind., 3((D 03 A,. Rep., ;;3, ;;-.8
It is, o$ co'rse, 'niversa&&# reco%niJed t!at t!e stat'tor# provisions re&ative to p'.&ication or ot!er $or, o$
notice a%ainst a nonresident o"ner s!o'&d .e co,p&ied "it!D and in respect to t!e p'.&ication o$ notice in
t!e ne"spaper it ,a# .e stated t!at strict co,p&iance "it! t!e re<'ire,ents o$ t!e &a" !as .een !e&d to
.e essentia&. In G'arant# Tr'st etc. Co. v. Green Cove etc., Rai&road Co. 7)(* U.S., )(-, )(+8, it "as !e&d
t!at "!ere ne"spaper p'.&ication "as ,ade $or )* "ee:s, "!en t!e stat'te re<'ired 32, t!e p'.&ication
"as ins'$$icient.
=it! respect to t!e provisions o$ o'r stat'te, re&ative to t!e sendin% o$ notice .# ,ai&, t!e re<'ire,ent is
t!at t!e 5'd%e s!a&& direct t!at t!e notice .e deposited in t!e ,ai& .# t!e c&er: o$ t!e co'rt, and it is not in
ter,s dec&ared t!at t!e notice ,'st .e deposited in t!e ,ai&. =e consider t!is to .e so,e si%ni$icanceD
and it see,s to 's t!at, !avin% d'e re%ard to t!e princip&es 'pon "!ic! t!e %ivin% o$ s'c! notice is
re<'ired, t!e a.sent o"ner o$ t!e ,ort%a%ed propert# ,'st, so $ar as t!e d'e process o$ &a" is
concerned, ta:e t!e ris: incident to t!e possi.&e $ai&'re o$ t!e c&er: to per$or, !is d't#, so,e"!at as !e
ta:es t!e ris: t!at t!e ,ai& c&er: or t!e ,ai& carrier ,i%!t possi.&# &ose or destro# t!e parce& or enve&ope
containin% t!e notice .e$ore it s!o'&d reac! its destination and .e de&ivered to !i,. T!is idea see,s to .e
stren%t!ened .# t!e consideration t!at in p&acin% 'pon t!e c&er: t!e st'd# o$ sendin% notice .# ,ai&, t!e
per$or,ance o$ t!at act is p't e$$ect'a&&# .e#ond t!e contro& o$ t!e p&ainti$$ in t!e &iti%ation. At an# rate it is
o.vio's t!at so ,'c! o$ section ((* o$ t!e Code o$ Civi& Proced're as re&ates to t!e sendin% o$ notice .#
,ai& "as co,p&ied "it! "!en t!e co'rt ,ade t!e order. T!e <'estion as to "!at ,a# .e t!e
conse<'ences o$ t!e $ai&'re o$ t!e record to s!o" t!e proo$ o$ co,p&iance "it! t!at re<'ire,ent "i&& .e
disc'ssed .# 's $'rt!er on.
T!e o.servations "!ic! !ave 5'st .een ,ade &ead to t!e conc&'sion t!at t!e $ai&'re o$ t!e c&er: to ,ai& t!e
notice, i$ in $act !e did so $ai& in !is d't#, is not s'c! as irre%'&arit# as a,o'nts to a denia& o$ d'e process
o$ &a"D and !ence in o'r opinion t!at irre%'&arit#, i$ proved, "o'&d not avoid t!e 5'd%,ent in t!is case.
Notice "as %iven .# p'.&ication in a ne"spaper and t!is is t!e on&# $or, o$ notice "!ic! t!e &a"
'nconditiona&&# re<'ires. T!is is o'r opinion is a&& t!at "as a.so&'te&# necessar# to s'stain t!e
proceedin%s.
It "i&& .e o.served t!at in considerin% t!e e$$ect o$ t!is irre%'&arit#, it ,a:es a di$$erence "!et!er it .e
vie"ed as a <'estion invo&vin% 5'risdiction or as a <'estion invo&vin% d'e process o$ &a". In t!e ,atter o$
5'risdiction t!ere can .e no distinction .et"een t!e ,'c! and t!e &itt&e. T!e co'rt eit!er !as 5'risdiction or
it !as notD and i$ t!e re<'ire,ent as to t!e ,ai&in% o$ notice s!o'&d .e considered as a step antecedent to
t!e ac<'irin% o$ 5'risdiction, t!ere co'&d .e no escape $ro, t!e conc&'sion t!at t!e $ai&'re to ta:e t!at step
"as $ata& to t!e va&idit# o$ t!e 5'd%,ent. In t!e app&ication o$ t!e idea o$ d'e process o$ &a", on t!e ot!er
!and, it is c&ear&# 'nnecessar# to .e so ri%oro's. T!e 5'risdiction .ein% once esta.&is!ed, a&& t!at d'e
process o$ &a" t!erea$ter re<'ires is an opport'nit# $or t!e de$endant to .e !eardD and as p'.&ication "as
d'&# ,ade in t!e ne"spaper, it "o'&d see, !i%!&# 'nreasona.&e to !o&d t!at t!e $ai&'re to ,ai& t!e notice
"as $ata&. =e t!in: t!at in app&#in% t!e re<'ire,ent o$ d'e process o$ &a", it is per,issi.&e to re$&ect 'pon
t!e p'rposes o$ t!e provision "!ic! is s'pposed to !ave .een vio&ated and t!e princip&e 'nder&#in% t!e
e9ercise o$ 5'dicia& po"er in t!ese proceedin%s. C'd%ed in t!e &i%!t o$ t!ese conceptions, "e t!in: t!at t!e
provision o$ t!e Act o$ Con%ress dec&arin% t!at no person s!a&& .e deprived o$ !is propert# "it!o't d'e
process o$ &a" !as not .een in$rin%ed.
In t!e pro%ress o$ t!is disc'ssion "e !ave stated t!e t"o conc&'sionsD 7)8 t!at t!e $ai&'re o$ t!e c&er: to
send t!e notice to t!e de$endant .# ,ai& did not destro# t!e 5'risdiction o$ t!e co'rt and 738 t!at s'c!
irre%'&arit# did not in$rin%e t!e re<'ire,ent o$ d'e process o$ &a". As a conse<'ence o$ t!ese conc&'sions
o$ irre%'&arit# in <'estion is in so,e ,eas're s!orn o$ its potenc#. It is sti&& necessar#, !o"ever, to
consider its e$$ects considered as a si,p&e irre%'&arit# o$ proced'reD and it "o'&d .e id&e to pretend t!at
even in t!is aspect t!e irre%'&arit# is not %rave eno'%!. Fro, t!is point o$ vie", !o"ever, it is o.vio's t!at
an# ,otion to vacate t!e 5'd%,ent on t!e %ro'nd o$ t!e irre%'&arit# in <'estion ,'st $ai& 'n&ess it s!o"s
t!at t!e de$endant "as pre5'diced .# t!at irre%'&arit#. T!e &east, t!ere$ore, t!at can .e re<'ired o$ t!e
proponent o$ s'c! a ,otion is to s!o" t!at !e !ad a %ood de$ense a%ainst t!e action to $orec&ose t!e
,ort%a%e. Not!in% o$ t!e :ind is, !o"ever, s!o"n eit!er in t!e ,otion or in t!e a$$idavit "!ic!
acco,panies t!e ,otion.
An app&ication to open or vacate a 5'd%,ent .eca'se o$ an irre%'&arit# or de$ect in t!e proceedin%s is
's'a&&# re<'ired to .e s'pported .# an a$$idavit s!o"in% t!e %ro'nds on "!ic! t!e re&ie$ is so'%!t, and in
addition to t!is s!o"in% a&so a ,eritorio's de$ense to t!e action. It is !e&d t!at a %enera& state,ent t!at a
part# !as a %ood de$ense to t!e action is ins'$$icient. T!e necessar# $acts ,'st .e averred. O$ co'rse i$ a
5'd%,ent is void 'pon its $ace a s!o"in% o$ t!e e9istence o$ a ,eritorio's de$ense is not necessar#. 7)2
R.C.L., -)+.8
T!e &apse o$ ti,e is a&so a circ',stance deep&# a$$ectin% t!is aspect o$ t!e case. In t!is connection "e
<'ote t!e $o&&o"in% passa%e $ro, an enc#c&opedic treatise no" in co'rse o$
p'.&ication5%cc!anro.&es.co,.p!
?=!ere, !o"ever, t!e 5'd%,ent is not void on its $ace, and ,a# t!ere$ore .e $orced i$ per,itted to stand
on t!e record, co'rts in ,an# instances re$'se to e9ercise t!eir <'asi e<'ita.&e po"ers to vacate a
5'd%,ent a$ter t!e &apse o$ t!e ter, at "!ic! it "as entered, e9cept in c&ear cases, to pro,ote t!e ends o$
5'stice, and "!ere it appears t!at t!e part# ,a:in% t!e app&ication is !i,se&$ "it!o't $a'&t and !as acted in
%ood $ait! and "it! ordinar# di&i%ence. Lac!es on t!e part o$ t!e app&icant, i$ 'ne9p&ained, is dee,ed
s'$$icient %ro'nd $or re$'sin% t!e re&ie$ to "!ic! !e ,i%!t ot!er"ise .e entit&ed. So,et!in% is d'e to t!e
$ina&it# o$ 5'd%,ents, and ac<'iescence or 'nnecessar# de&a# is $ata& to ,otions o$ t!is c!aracter, since
co'rts are a&"a#s re&'ctant to inter$ere "it! 5'd%,ents, and especia&&# "!ere t!e# !ave .een e9ec'ted or
satis$ied. T!e ,ovin% part# !as .'rden o$ s!o"in% di&i%ence, and 'n&ess it is s!o"n a$$ir,ative&# t!e co'rt
"i&& not ordinari&# e9ercise its discretion in !is $avor.? 7)0 R.C. L., ;*4, ;*0.8
O$ co'rse i$ t!e 5'risdiction o$ t!e co'rt or t!e s'$$icienc# o$ t!e process o$ &a" depended 'pon t!e ,ai&in%
o$ t!e notice .# t!e c&er:, t!e re$&ections in "!ic! "e are no" ind'&%in% "o'&d .e id&e and $rivo&o'sD .'t t!e
considerations ,entioned are introd'ced in order to s!o" t!e propriet# o$ app&#in% to t!is sit'ation t!e
&e%a& pres',ption to "!ic! a&&'sion !as .een ,ade. Upon t!at pres',ption, s'pported .# t!is
circ',stances o$ t!is case, "e do not !esitate to $o'nd t!e conc&'sion t!at t!e de$endant vo&'ntari&#
a.andoned a&& t!o'%!t o$ savin% !is propert# $ro, t!e o.&i%ation "!ic! !e !ad p&aced 'pon itD t!at
:no"&ed%e o$ t!e proceedin%s s!o'&d .e i,p'ted to !i,D and t!at !e ac<'iesced in t!e conse<'ences o$
t!ose proceedin%s a$ter t!e# !ad .een acco,p&is!ed. Under t!ese circ',stances it is c&ear t!at t!e ,erit
o$ t!is ,otion is, as "e !ave a&read# stated, adverse&# a$$ected in a !i%! de%ree .# t!e de&a# in as:in% $or
re&ie$. Not is it an ade<'ate rep&# to sa# t!at t!e proponent o$ t!is ,otion is a ad,inistrator "!o on&#
<'a&i$ied a $e" ,ont!s .e$ore t!is ,otion "as ,ade. No disa.i&it# on t!e part o$ t!e de$endant !i,se&$
e9isted $ro, t!e ti,e "!en t!e $orec&os're "as e$$ected 'nti& !is deat!D and "e .e&ieve t!at t!e de&a# in
t!e appoint,ent o$ t!e ad,inistrator and t!e instit'tion o$ t!is action is a circ',stance "!ic! is i,p'ta.&e
to t!e parties in interest "!oever t!e# ,a# !ave .een. O$ co'rse in t!e ,inor !eirs !ad instit'ted an
action in t!eir o"n ri%!t to recover to propert#, it "o'&d !ave .een di$$erent.
It is, !o"ever, ar%'ed t!at t!e de$endant !as s'$$ered pre5'dice .# reason o$ t!e $act t!at t!e .an:
.eca,e t!e p'rc!aser o$ t!e propert# at t!e $orec&os're sa&e $or a price %reat&# .e&o" t!at "!ic! !ad .een
a%reed 'pon in t!e ,ort%a%e as t!e 'pset price o$ t!e propert#. In t!is connection, it appears t!at in artic&e
nine o$ t!e ,ort%a%e "!ic! "as t!e s'.5ect o$ t!is $orec&os're, as a,ended .# t!e notaria& doc',ent o$
C'&# )*, )*2;, t!e parties to t!is ,ort%a%e ,ade a stip'&ation to t!e e$$ect t!at t!e va&'e t!erein p&aced
'pon t!e ,ort%a%ed properties s!o'&d served as a .asis o$ sa&e in case t!e de.t s!o'&d re,ain 'npaid
and t!e .an: s!o'&d proceed to a $orec&os're. T!e 'pset price stated in t!at stip'&ation $or a&& t!e parce&s
invo&ved in t!is $orec&os're "as P3+;,222. It is said in .e!a&$ o$ t!e appe&&ant t!at "!en t!e .an: .o'%!t in
t!e propert# $or t!e s', o$ P))2,322 it vio&ated t!at stip'&ation.
It !as .een !e&d .# t!is co'rt t!at a c&a'se in a ,ort%a%e providin% $or a tipo, or 'pset t!e price, does not
prevent a $orec&os're, nor a$$ect t!e va&idit# o$ a sa&e ,ade in t!e $orec&os're proceedin%s. 7Ban%co v.
Cr'J Herrera and =# Piaco, )), P!i&. Rep., 423, 6anco1EspaLo& Fi&ipino v. @ona&dson, Si, M Co., 0 P!i&.
Rep. 4)+.8 In .ot! t!e cases !ere cited t!e propert# "as p'rc!ased at t!e $orec&os're sa&e, not .# t!e
creditor or ,ort%a%ee, .'t a t!ird part#. =!et!er t!e sa,e r'&e s!o'&d .e app&ied in a case "!ere t!e
,ort%a%ee !i,se&$ .eco,es t!e p'rc!aser !as apparent&# not .een decided .# t!is co'rt in an# reported
decision, and t!is <'estion need not !ere .e considered, since it is evident t!at i$ an# &ia.i&it# "as inc'rred
.# t!e .an: .# t!e p'rc!asin% $or a price .e&o" t!at $i9ed in t!e stip'&ation, its &ia.i&it# "as a persona&
&ia.i&it# derived $ro, t!e contract o$ ,ort%a%eD and as "e !ave a&read# de,onstrated s'c! a &ia.i&it# co'nt
not .e t!e s'.5ect o$ ad5'dication in an action "!ere t!e co'rt !ad no 5'risdiction over t!e person o$ t!e
de$endant. I$ t!e p&ainti$$ .an: .eca,e &ia.&e to acco'nt $or t!e di$$erence .et"een t!e 'pset price at
"!ic! it .o'%!t in t!e propert#, t!at &ia.i&it# re,ains 'na$$ected .# t!e disposition "!ic! t!e co'rt ,ade o$
t!is caseD and t!e $act t!at t!e .an: ,a# !ave vio&ated s'c! an o.&i%ation can in no "ise a$$ect t!e va&idit#
o$ t!e 5'd%,ent entered in t!e Co'rt o$ First Instance.
In connection "it! t!e entire $ai&'re o$ t!e ,otion to s!o" eit!er a ,eritorio's de$ense to t!e action or t!at
t!e de$endant !ad s'$$ered an# pre5'dice o$ "!ic! t!e &a" can ta:e notice, "e ,a# .e per,itted to add
t!at in o'r opinion a ,otion o$ t!is :ind, "!ic! proposes to 'nsett&e 5'dicia& proceedin%s &on% a%o c&osed,
can not .e considered "it! $avor, 'n&ess .ased 'pon t!e %ro'nds "!ic! appea& to t!e conscience o$ t!e
co'rt. P'.&ic po&ic# re<'ires t!at 5'dicia& proceedin%s .e 'p!e&d. T!e ,a9i, !ere app&ica.&e is non <'ieta
,overe. As "as once said .# C'd%e 6re"er, a$ter"ards a ,e,.er o$ t!e S'pre,e Co'rt o$ t!e United
States5%cc!anro.&es.co,.p!
?P'.&ic po&ic# re<'ires t!at 5'dicia& proceedin%s .e 'p!e&d, and tit&es o.tained in t!ose proceedin%s .e
sa$e $ro, t!e r't!&ess !and o$ co&&atera& attac:. I$ tec!nica& de$ects are ad5'd%ed potent to destro# s'c!
tit&es, a 5'dicia& sa&e "i&& never rea&iJed t!e va&'e o$ t!e propert#, $or no pr'dent ,an "i&& ris: !is ,one# in
.iddin% $or and .'#in% t!at tit&e "!ic! !e !as reason to $ear ,a# #ears t!erea$ter .e s"ept a"a# t!ro'%!
so,e occ'&t and not readi&# discovera.&e de$ect.? 7Martin v. Pond, (2 Fed., )0.8
In t!e case "!ere t!at &an%'a%e "as 'sed an atte,pt "as ,ade to ann'& certain $orec&ose proceedin%s
on t!e %ro'nd t!at t!e a$$idavit 'pon "!ic! t!e order o$ p'.&ication "as .ased erroneo's&# stated t!at t!e
a.sent part&# "as a resident o$ a certain to"n in t!e State o$ Nansas, "!en !e "as in $act residin% in
anot!er State. It "as !e&d t!at t!is ,ista:e did not a$$ect t!e va&idit# o$ t!e proceedin%s.
In t!e precedin% disc'ssion "e !ave ass',ed t!at t!e c&er: $ai&ed to send t!e notice .# post as re<'ired
.# t!e order o$ t!e co'rt. =e :no" proceed to consider "!et!er t!is is a proper ass',ptionD and t!e
proposition "!ic! "e propose to esta.&is! is t!at t!ere is a &e%a& pres',ption t!at t!e c&er: per$or,ed !is
d't# as t!e ,inisteria& o$$icer o$ t!e co'rt, "!ic! pres',ption is not overco,e .# an# ot!er $acts
appearin% in t!e ca'se.
In s'.section )4 o$ section ((4 o$ t!e Code o$ Civi& Proced're it is dec&ared t!at t!ere is pres',ption ?t!at
o$$icia& d't# !as .een re%'&ar&# per$or,edD? and in s'.section )+ it is dec&ared t!at t!ere is a pres',ption
?t!at t!e ordinar# co'rse o$ .'siness !as .een $o&&o"ed.? T!ese pres',ption are o$ co'rse in no sense
nove&ties as t!e# e9press ideas "!ic! !ave a&"a#s .een reco%niJed. O,nia praes','nt'r rite et
so&e,niter esse acta donec pro.det'r in contrari',. T!ere is t!ere$ore c&ear&# a &e%a& pres',ption t!at
t!e c&er: per$or,ed !is d't# a.o't ,ai&in% t!is noticeD and "e t!in: t!at stron% considerations o$ po&ic#
re<'ire t!at t!is pres',ption s!o'&d .e a&&o"ed to operate "it! $'&& $orce 'nder t!e circ',stances o$ t!is
case. A part# to an action !as no contro& over t!e c&er: o$ t!e co'rtD and !as no ri%!t to ,edd&e 'nd'&#
"it! t!e .'siness o$ c&er: in t!e per$or,ance o$ !is d'ties. Havin% no contro& over t!is o$$icer, t!e &iti%ant
,'st depend 'pon t!e co'rt to see t!at t!e d'ties i,posed in t!e c&er: are per$or,ed.
Ot!er considerations are &ess potent contri.'te to stren%t!en t!e conc&'sion 5'st stated. T!ere is no
princip&e o$ &a" .etter sett&ed t!an t!at a$ter 5'risdiction !as once .een ac<'ired, ever# act o$ a co'rt o$
%enera& 5'risdiction s!a&& .e pres',ed to !ave .een ri%!t&# done. T!is r'&e is app&ied to ever# 5'd%,ent or
decree rendered in t!e vario's sta%es o$ t!e proceedin%s $ro, t!eir initiations to t!eir co,p&etion
7Ioor!ees v. United States 6an:, )2 Pet., ()4D (0 U.S., 44*8D and i$ t!e record is si&ent "it! respect to an#
$act "!ic! ,'st !ave .een esta.&is!ed .e$ore t!e co'rt co'&d !ave ri%!t&# acted, it "i&& .e pres',ed t!at
s'c! $act "as proper&# .ro'%!t to its :no"&ed%e. 7T!e Lessee o$ Gri%non v. Astor, 3 Ho"., ()*D )) L. ed.,
3+(.8
?In ,a:in% t!e order o$ sa&e Eo$ t!e rea& state o$ a decedentF t!e co'rt are pres',ed to !ave ad5'd%ed
ever# <'estion necessar# to 5'sti$# s'c! order or decree, viJ T!e deat! o$ t!e o"nersD t!at t!e petitioners
"ere !is ad,inistratorsD t!at t!e persona& estate "as ins'$$icient to pa# t!e de.ts o$ t!e deceasedD t!at
t!e private acts o$ Asse,.&#, as to t!e ,anner o$ sa&e, "ere "it!in t!e constit'tiona& po"er o$ t!e
Le%is&at're, and t!at a&& t!e provisions o$ t!e &a" as to notices "!ic! are director# to t!e ad,inistrators
!ave .een co,p&ied "it!. . . . T!e co'rt is not .o'nd to enter 'pon t!e record t!e evidence on "!ic! an#
$act "as decided.? 7F&orentine v. 6arton, 3 =a&&., 3)2D )- L. ed., -+0.8 Especia&&# does a&& !is app&# a$ter
&on% &apse o$ ti,e.
App&e%ate v. Le9in%ton and Carter Co'nt# Minin% Co. 7))- U.S., 3308 contains as instr'ctive disc'ssion in
a case ana&o%o's to t!at "!ic! is no" .e$ore 's. It t!ere appeared t!at in order to $orec&ose a ,ort%a%e in
t!e State o$ Nent'c:# a%ainst a nonresident de.tor it "as necessar# t!at p'.&ication s!o'&d .e ,ade in a
ne"spaper $or a speci$ied period o$ ti,e, a&so t!at t!e order re<'irin% t!e de$endant to appear s!o'&d .e
posted at t!e $ront door o$ t!e co'rt !o'se and .e p'.&is!ed on so,e S'nda#, i,,ediate&# a$ter divine
service, in s'c! c!'rc! as t!e co'rt s!o'&d direct. In a certain action 5'd%,ent !ad .een entered a%ainst a
nonresident, a$ter a p'.&ication in p'rs'ance o$ t!is provisions. Man# #ears &ater t!e va&idit# o$ t!e
proceedin%s "as ca&&ed in <'estion in anot!er action. It "as proved $ro, t!e $i&es o$ an ancient periodica&
t!at p'.&ication !ad .een ,ade in its co&',ns as re<'ired .# &a"D .'t no proo$ "as o$$ered to s!o" t!e
p'.&ication o$ t!e order at t!e c!'rc!, or t!e postin% o$ it at t!e $ront door o$ t!e co'rt1!o'se. It "as
insisted .# one o$ t!e parties t!at t!e 5'd%,ent o$ t!e co'rt "as void $or &ac: o$ 5'risdiction. 6't t!e
S'pre,e Co'rt o$ t!e United States said5%cc!anro.&es.co,.p!
?T!e co'rt "!ic! ,ade t!e decree . . . "as a co'rt o$ %enera& 5'risdiction. T!ere$ore ever# pres',ption
not inconsistent "it! t!e record is to .e ind'&%ed in $avor o$ its 5'risdiction. . . . It is to .e pres',ed t!at t!e
co'rt .e$ore ,a:in% its decree too: care to see t!at its order $or constr'ctive service, on "!ic! its ri%!t to
,a:e t!e decree depended, !ad .een o.e#ed.
It is tr'e t!at in t!is case t!e $or,er 5'd%,ent "as t!e s'.5ect o$ co&&atera&, or indirect attac:, "!i&e in t!e
case at .ar t!e ,otion to vacate t!e 5'd%,ent is a direct proceedin% $or re&ie$ a%ainst it. T!e sa,e %enera&
pres',ption, !o"ever, is ind'&%ed in $avor o$ t!e 5'd%,ent o$ a co'rt o$ %enera& 5'risdiction, "!et!er it is
t!e s'.5ect o$ direct or indirect attac:, t!e on&# di$$erence .ein% t!at in case o$ indirect attac: t!e 5'd%,ent
is conc&'sive&# pres',ed to .e a va&id 'n&ess t!e record a$$ir,ative&# s!o"s it to .e void, "!i&e in case o$
direct attac: t!e pres',ption in $avor o$ its va&idit# ,a# in certain cases .e overco,e .# proo$ e9trinsic to
t!e record.
T!e pres',ption t!at t!e c&er: per$or,ed !is d't# and t!at t!e co'rt ,ade its decree "it! :no"&ed%e t!at
t!e re<'ire,ents o$ &a" !ad .een co,p&ied "it! appear to .e a,p&# s'$$icient to s'pport t!e conc&'sion
t!at t!e notice "as sent .# t!e c&er: as re<'ired .# t!e order. It is tr'e t!at t!ere o'%!t to .e $o'nd a,on%
t!e papers on $i&e in t!is ca'se an a$$idavit, as re<'ired .# section 422 o$ t!e Code o$ Civi& Proced're,
s!o"in% t!at t!e order "as in $act so sent .# t!e c&er:D and no s'c! a$$idavit appears. T!e record is
t!ere$ore si&ent "!ere it o'%!t to spea:. 6't t!e ver# p'rpose o$ t!e &a" in reco%niJin% t!ese
pres',ptions is to ena.&e t!e co'rt to s'stain a prior 5'd%,ent in t!e $ace o$ s'c! an o,ission. I$ "e "ere
to !o&d t!at t!e 5'd%,ent in t!is case is void .eca'se t!e proper a$$idavit is not present in t!e $i&e o$
papers "!ic! "e ca&& t!e record, t!e res'&t "o'&d .e t!at in t!e $'t're ever# tit&e in t!e Is&ands restin% 'pon
a 5'd%,ent &i:e t!e no" .e$ore 's "o'&d depend, $or its contin'ed sec'rit#, 'pon t!e presence o$ s'c!
a$$idavit a,on% t!e papers and "o'&d .e &ia.&e at an# ,o,ent to .e destro#ed .# t!e disappearance o$
t!at piece o$ paper. =e t!in: t!at no co'rt, "it! proper re%ard $or t!e sec'rit# o$ 5'dicia& proceedin%s and
$or t!e interests "!ic! !ave .# &a" .een con$ided to t!e co'rts, "o'&d inc&ine to $avor s'c! a conc&'sion. It
o'r opinion t!e proper co'rse in a case o$ t!is :ind is to !o&d ! t!at t!e &e%a& pres',ption t!at t!e c&er:
per$or,ed !is d't# sti&& ,aintains not"it!standin% t!e a.sence $ro, t!e record o$ t!e proper proo$ o$ t!at
$act.
In t!is connection it is i,portant to .ear in ,ind t!at 'nder t!e practice prevai&in% in t!e P!i&ippine Is&ands
t!e "ord ?record? is 'sed in a &oose and .road sense, as indicatin% t!e co&&ective ,ass o$ papers "!ic!
contain t!e !istor# o$ a&& t!e s'ccessive steps ta:en in case and "!ic! are $ina&&# deposited in t!e arc!ives
o$ t!e c&er:/s o$$ice as a ,e,oria& o$ t!e &iti%ation. It is a ,atter o$ %enera& in$or,ation t!at no 5'd%,ent
ro&&, or .oo: o$ $ina& record, is co,,on&# :ept in o'r co'rts $or t!e p'rpose o$ recordin% t!e p&eadin%s and
principa& proceedin%s in actions "!ic! !ave .een ter,inatedD and in partic'&ar, no s'c! record is :ept in
t!e Co'rt o$ First Instance o$ t!e cit# o$ Mani&a. T!ere is, indeed, a section o$ t!e Code o$ Civi& Proced're
"!ic! directs t!at s'c! a .oo: o$ $ina& record s!a&& .e :eptD .'t t!is provision !as, a ,atter o$ co,,on
:no"&ed%e, .een %enera&&# i%nored. T!e res'&t is t!at in t!e present case do not !ave t!e assistance o$
t!e recita&s o$ s'c! a record to ena.&e 's to pass 'pon t!e va&idit# o$ t!is 5'd%,ent and as a&read# stated
t!e <'estion ,'st .e deter,ined .# e9a,inin% t!e papers contained in t!e entire $i&e.
6't it is insisted .# t!e co'nse& $or t!is ,otion t!at t!e a$$idavit o$ 6ernardo C!an # Garcia s!o"in% t!at
'pon Apri& 4, )*2+, !e sent a noti$ication t!ro'%! t!e ,ai& addressed to t!e de$endant at Mani&a, P!i&ippine
Is&ands, s!o'&d .e accepted as a$$ir,ative proo$ t!at t!e c&er: o$ t!e co'rt $ai&ed in !is d't# and t!at,
instead o$ !i,se&$ sendin% t!at t!e re<'isite notice t!ro'%! t!e ,ai&, !e re&ied 'pon 6ernardo to send it $or
!i,. =e do not t!in: t!at t!is is .# ,eans a necessar# in$erence. O$ co'rse i$ it !ad a$$ir,ative&#
appeared t!at t!e c&er: !i,se&$ !ad atte,pted to co,p&# "it! t!is order and !ad directed t!e noti$ication to
Mani&a "!en !e "o'&d !ave directed it to A,o#, t!is "o'&d .e conc&'sive t!at !e !ad $ai&ed to co,p&# "it!
t!e e9act ter,s o$ t!e orderD .'t s'c! is not t!is case. T!at t!e c&er: o$ t!e attorne#s $or t!e p&ainti$$
erroneo's&# sent a noti$ication to t!e de$endant at a ,ista:en address a$$ords in o'r opinion ver# s&i%!t
.asis $or s'pposin% t!at t!e c&er: ,a# not !ave sent notice to ri%!t address.
T!ere is 'ndo'.ted&# %ood a't!orit# to s'pport t!e position t!at "!en t!e record states t!e evidence or
,a:es an aver,ent "it! re$erence to a 5'risdictiona& $act, it "i&& not .e pres',ed t!at t!ere "as ot!er or
di$$erent evidence respectin% t!e $act, or t!at t!e $act "as ot!er"ise t!at as stated. I$, to %ive an
i&&'stration, it appears $ro, t!e ret'rn o$ t!e o$$icer t!at t!e s',,ons "as served at a partic'&ar p&ace o$ in
a partic'&ar ,anner, it "i&& not .e pres',ed t!at service a&so ,ade in anot!er p&ace or in a di$$erent
,annerD or i$ it appears t!at service "as ,ade a person ot!er t!an t!e de$endant, it "i&& not .e pres',ed,
in t!e si&ence o$ t!e record, t!at it "as ,ade 'pon t!e de$endant a&so 7Ga&pin v. Pa%e, )+ =a&&., (02, (;;D
Sett&e,ier v. S'&&ivan, *- U.S., 444,44*8. =!i&e "e .e&ieve t!at t!ese propositions are entire&# correct as
app&ied to t!e case "!ere t!e person ,a:in% t!e ret'rn is t!e o$$icer "!o is .# &a" re<'ired to ,a:e t!e
ret'rn, "e do not t!in: t!at it is proper&# app&ica.&e "!ere, as in t!e present case, t!e a$$idavit "as ,ade
.# a person "!o, so $ar as t!e provisions o$ &a" are concerned, "as a ,ere inter,edd&er.
T!e &ast <'estion o$ i,portance "!ic! "e propose to consider is "!et!er t!e ,otion in t!e ca'se is
ad,issi.&e as a proceedin% to o.tain re&ie$ in s'c! a case as t!is. I$ t!e ,otion prevai&s t!e 5'd%,ent o$
C'&# 3, )*2+, and a&& s'.se<'ent proceedin%s "i&& .e set aside, and t!e &iti%ation "i&& .e rene"ed,
proceedin% a%ain $ro, t!e date ,entioned as i$ t!e pro%ress o$ t!e action !ad not .een interr'pted. T!e
proponent o$ t!e ,otion does not as: t!e $avor o$ .ein% per,itted to interpose a de$ense. His p'rpose is
,ere&# to ann'& t!e e$$ective 5'd%,ent o$ t!e co'rt, to t!e end t!at t!e &iti%ation ,a# a%ain res',e it
re%'&ar co'rse.
6't t!e 5'd%,ent in <'estion is not void in an# s'c! sense. It is entire&# re%'&ar in $or,, and t!e a&&e%ed
de$ect is one "!ic! is not apparent 'pon its $ace. It $o&&o"s t!at even i$ t!e 5'd%,ent co'&d .e s!o"n co'&d
.e s!o"n to .e void $or "ant o$ 5'risdiction, or $or &ac: o$ d'e process o$ &a", t!e part# a%%rieved t!ere.#
is .o'nd to resort to so,e appropriate proceedin%s to o.tain re&ie$. Under accepted princip&es o$ &a" and
practice, &on% reco%niJed in A,erican co'rts, a proper re,ed# in s'c! case, a$ter t!e ti,e $or appea& or
revie" !as passed, is $or t!e a%%rieved part# to .rin% an action to en5oin t!e 5'd%,ent, i$ not a&read#
carried into e$$ectD or i$ t!e propert# !as a&read# .een disposed o$ !e ,a# instit'te to recover it. In ever#
sit'ation o$ t!is c!aracter an appropriate re,ed# is at !andD and i$ propert# !as .een ta:en "it!o't d'e
process, t!e &a" concedes d'e process to recover it. =e accordin%&# !o&d t!at, ass',in% t!e 5'd%,ent to
!ave .een void as a&&e%ed .# t!e proponent o$ t!is ,otion, t!e proper re,ed# "as .# an ori%ina&
proceedin% and not .# ,otion in t!e ca'se. As "e !ave a&read# seen o'r Code o$ Civi& Proced're de$ines
t!e conditions 'nder "!ic! re&ie$ a%ainst a 5'd%,ent ,a# .e o.tained .# ,otionD and "e t!in: it "o'&d
on&# .e prod'ctive o$ con$'sion $or t!is co'rt to reco%niJe s'c! a proceedin% as proper 'nder conditions
di$$erent $ro, t!ose de$ined .# &a". Upon t!e point o$ proced're !ere invo&ved, "e re$er to t!e case o$
Peop&e v. Harrison 7+4 Ca&., ;2-8 "!erein it "as !e&d t!at a ,otion "i&& not &ie to vacate a 5'd%,ent a$ter
t!e &apse o$ t!e ti,e &i,ited .# stat'te i$ t!e 5'd%,ent is not void on its $aceD and in a&& cases, a$ter t!e
&apse o$ s'c! ti,e, "!en an atte,pt is ,ade to vacate t!e 5'd%,ent .# a proceedin% in co'rt $or t!at
p'rpose an action re%'&ar&# .ro'%!t is pre$era.&e, and s!o'&d .e re<'ired. It "i&& .e noted t!at section ))(
o$ t!e Code o$ Civi& Proced're "as ta:en ver.ati, $ro, t!e Ca&i$ornia Code 7sec. 4-(8.
T!e conc&'sions stated in t!is opinion indicate t!at t!e 5'd%,ent appea&ed $ro, is "it!o't error, and t!e
sa,e is accordin%&# a$$ir,ed, "it! costs. So ordered.
Are&&ano, C.C. Torres, Carson, and AvanceLa, CC., conc'r.
PERNIN ELMER SINGAPORE PTE LT@., Petitioner, v. @ANILA TRA@ING CORPORATION, Respondent.
@ E C I S I O N
Respondent entered into a @istri.'tion A%ree,ent0 on ) C'ne )**2 "it! Per:in1E&,er Instr',ents Asia
Pte Ltd. 7PEIA8, a corporation d'&# or%aniJed and e9istin% 'nder t!e &a"s o$ Sin%apore and en%a%ed in
t!e .'siness o$ ,an'$act'rin%, prod'cin%, se&&in% or distri.'tin% vario's &a.orator#Oana&#tica& instr',ents.
6# virt'e o$ t!e said a%ree,ent, PEIA appointed t!e respondent as t!e so&e distri.'tor o$ its prod'cts in
t!e P!i&ippines. T!e respondent "as &i:e"ise %ranted t!e ri%!t to p'rc!ase and se&& t!e prod'cts o$ PEIA
s'.5ect to t!e ter,s and conditions set $ort! in t!e @istri.'tion A%ree,ent. PEIA, on t!e ot!er !and, s!a&&
%ive respondent a co,,ission $or t!e sa&e o$ its prod'cts in t!e P!i&ippines.
Under t!e sa,e @istri.'tion A%ree,ent, respondent s!a&& order t!e prod'cts o$ PEIA, "!ic! it s!a&& se&& in
t!e P!i&ippines, eit!er $ro, PEIA itse&$ or $ro, Per:in1E&,er Instr',ents 7P!i&ippines8 Corporation 7PEIP8,
an a$$i&iate o$ PEIA. PEIP is a corporation d'&# or%aniJed and e9istin% 'nder P!i&ippine &a"s, and invo&ved
in t!e .'siness o$ "!o&esa&e tradin% o$ a&& :inds o$ scienti$ic, .iotec!no&o%ica&, and ana&#tica& instr',ents
and app&iances. PEIA a&&e%ed&# o"ned **P o$ t!e s!ares o$ PEIP.
On 3 A'%'st )**-, !o"ever, PEIA 'ni&atera&&# ter,inated t!e @istri.'tion A%ree,ent, pro,ptin%
respondent to $i&e .e$ore t!e RTC o$ Manda&'#on% Cit#, 6ranc! 3)3, a Co,p&aint; $or Co&&ection o$ S', o$
Mone# and @a,a%es "it! Pra#er $or Iss'ance o$ a =rit o$ Attac!,ent a%ainst PEIA and PEIP, doc:eted
as Civi& Case No. MC**1;20.
T!e RTC iss'ed an Order,- dated 3; Marc! )***, den#in% respondentQs pra#er $or t!e iss'ance o$ a "rit
o$ attac!,ent. T!e respondent ,oved $or t!e reconsideration o$ t!e said Order .'t it "as denied in
anot!er Order, dated )) Can'ar# 3222.+
Respondent t!en $i&ed E91Parte Motions $or Iss'ance o$ S',,ons and $or Leave o$ Co'rt to @ep'tiJe
RespondentQs Genera& Mana%er, Ric!ard A. Tee, to Serve S',,ons O'tside o$ t!e P!i&ippines,* "!ic!
t!e RTC %ranted in its Order, dated 3- Apri& 3222.)2 T!'s, an A&ias S',,ons, dated 4 Septe,.er 3222,
"as iss'ed .# t!e RTC to PEIA. 6't t!e said A&ias S',,ons "as served on 3+ Septe,.er 3222 and
received .# Per:ine&,er Asia, a Sin%aporean .ased so&e proprietors!ip, o"ned .# t!e petitioner and,
a&&e%ed&#, a separate and distinct entit# $ro, PEIA.
PEIP ,oved to dis,iss)) t!e Co,p&aint $i&ed .# respondent on t!e %ro'nd t!at it states no ca'se o$
action. Per:ine&,er Asia, on t!e ot!er !and, t!ro'%! its co'nse&, sent &etters, dated )3 Octo.er 3222)3
and )0 Nove,.er 3222,)( to t!e respondent and to t!e RTC, respective&#, to in$or, t!e, o$ t!e "ron%$'&
service o$ s',,ons 'pon Per:ine&,er Asia.
Accordin%&#, respondent $i&ed an E91Parte Motion to Ad,it A,ended Co,p&aint, to%et!er "it! t!e
A,ended Co,p&aint c&ai,in% t!at PEIA !ad .eco,e a so&e proprietors!ip)4 o"ned .# t!e petitioner, and
s'.se<'ent&# c!an%ed its na,e to Per:ine&,er Asia. 6ein% a so&e proprietors!ip o$ t!e petitioner, a
c!an%e in PEIAQs na,e and 5'ridica& stat's did not detract $ro, t!e $act t!at a&& its d'e and o'tstandin%
o.&i%ations to t!ird parties "ere ass',ed .# t!e petitioner. Hence, in its A,ended Co,p&aint)0
respondent so'%!t to c!an%e t!e na,e o$ PEIA to t!at o$ t!e petitioner. In an Order, dated 34 C'&#
322),); t!e RTC ad,itted t!e A,ended Co,p&aint $i&ed .# t!e respondent. Respondent t!en $i&ed
anot!er Motion)- $or t!e Iss'ance o$ S',,ons and $or Leave o$ Co'rt to @ep'tiJe RespondentQs Genera&
Mana%er, Ric!ard A. Tee, to Serve S',,ons O'tside t!e P!i&ippines. In anot!er Order, dated 4 Marc!
3223,)+ t!e RTC dep'tiJed respondentQs Genera& Mana%er to serve s',,ons on petitioner in Sin%apore.
T!e RTC t!'s iss'ed s',,ons)* to t!e petitioner. Actin% on t!e said Order, respondentQs Genera&
Mana%er "ent to Sin%apore and served s',,ons on t!e petitioner.
Mean"!i&e, in an Order, dated )2 Octo.er 322), t!e RTC denied t!e Motion to @is,iss $i&ed .# PEIP,
co,pe&&in% t!e &atter to $i&e its Ans"er to t!e A,ended Co,p&aint.
Petitioner s'.se<'ent&# $i&ed "it! t!e RTC a Specia& Appearance and Motion to @is,iss32 respondentQs
A,ended Co,p&aint on (2 Ma# 3223 .ased on t!e $o&&o"in% %ro'nds 7)8 t!e RTC did not ac<'ire
5'risdiction over t!e person o$ t!e petitionerD 738 t!e respondent $ai&ed to state a ca'se o$ action a%ainst
t!e petitioner .eca'se it is not t!e rea& part#1in1interestD 7(8 even ass',in% ar%'endo t!at t!e respondent
correct&# $i&ed t!e case a%ainst t!e petitioner, t!e @istri.'tion A%ree,ent "!ic! "as t!e .asis o$ its c&ai,
%rants PEIA t!e ri%!t to ter,inate t!e contract at an# ti,eD and 748 t!e ven'e "as i,proper&# &aid. T!e
RTC in its Order, dated 4 Nove,.er 3223, denied petitionerQs Motion to @is,iss, ratiocinatin% as $o&&o"s
Prescindin% $ro, t!e a.ove ar%',ents o$ .ot! parties, t!e ERTCF is inc&ined to @ENB t!e Motion to
@is,iss.
A care$'& scr'tin# on 7sic8 t!e a&&e%ation in t!e 7A,ended8 Co,p&aint "o'&d s!o" t!at E!erein respondentF
a&&e%es o"ners!ip .# t!e E!erein petitionerF o$ s!ares o$ stoc:s in t!e EPEIPF. S'c! a&&e%ation o$ o"ners!ip
o$ s!ares o$ stoc:s .# t!e EpetitionerF "o'&d revea& t!at t!ere is an a&&e%ation o$ persona& propert# in t!e
P!i&ippines. S!ares o$ stoc:s represent persona& propert# o$ t!e s!are!o&der. T!'s, it $o&&o"s t!at even
t!o'%! t!e A,ended Co,p&aint is pri,ari&# $or da,a%es, it does re&ate to a propert# o$ t!e EpetitionerF, to
"!ic! t!e &atter !as a c&ai, interest 7sic8, or an act'a& or contin%ent &ien, "!ic! "i&& ,a:e it $a&& 'nder one
o$ t!e re<'isite 7sic8 $or e9traterritoria& service 'nder Section )0, R'&e )4, o$ t!e R'&es o$ Co'rt. T!'s, it
co'&d .e %ain$'&&# said t!at t!e s',,ons !ad .een va&id&# served $or ERTCF to ac<'ire 5'risdiction over t!e
EpetitionerF.
T!e EpetitionerF !in%es its dis,issa& on t!e $ai&'re o$ t!e ErespondentF to state a ca'se o$ action. T!e ERTCF
"o'&d &i:e to e,p!asiJe t!at in a Motion to @is,iss, it !#pot!etica&&# ad,its t!e tr't! o$ t!e $acts a&&e%ed in
a co,p&aint.
=!en t!e %ro'nd $or dis,issa& is t!at t!e co,p&aint states no ca'se o$ action, s'c! $act can .e
deter,ined on&# $ro, t!e $acts a&&e%ed in t!e co,p&aint 9 9 9 and $ro, no ot!er 9 9 9 and t!e Co'rt cannot
consider ot!er ,atters a&i'nde 9 9 9. T!is i,p&ies t!at t!e iss'e ,'st .e passed 'pon on t!e .asis o$ t!e
a&&e%ations and dec&are t!e, to .e $a&se, ot!er"ise it "o'&d .e a proced'ra& error and a denia& o$ d'e
process to t!e ErespondentF 9 9 9.
T!e t!ree 7(8 essentia& e&e,ents o$ a ca'se o$ action are t!e $o&&o"in%
a8 T!e p&ainti$$Qs &e%a& ri%!tsD
.8 A corre&ative o.&i%ation o$ t!e de$endantD
c8 T!e o,ission o$ t!e de$endant in vio&ation o$ t!e &e%a& ri%!ts.
A c'rsor# readin% o$ t!e A,ended Co,p&aint "o'&d revea& t!at a&& o$ t!e essentia& e&e,ents o$ a ca'se o$
action are attendant in t!e A,ended Co,p&aint.
As $or t!e contention t!at ven'e "as i,proper&# &aid, 9 9 9, t!e ERTCF in its '&ti,ate desire t!at t!e ends o$
5'stice co'&d .e served in its $'&&est, cannot r'&e t!at ven'e "as i,proper&# &aid.
9 9 9
T!e stip'&ation as to t!e ven'e o$ a prospective action does not prec&'de t!e $i&in% o$ t!e s'it in t!e
residence o$ t!e ErespondentF 'nder Section 3, R'&e 4, R'&es o$ Co'rt, especia&&# "!ere t!e ven'e
stip'&ation "as i,posed .# t!e EpetitionerF $or its o"n .ene$its.
9 9 9
T!e ERTCF $'rt!er .e&ieves t!at it is i,perative t!at in order to $erret o't t!e tr't!, a $'&&1.&o"n tria& is
necessar# $or parties to .e a.&e to prove or disprove t!eir a&&e%ations.3)
Petitioner ,oved $or t!e reconsideration o$ t!e a$oresaid Order .'t, it "as denied .# t!e RTC in its Order,
dated 32 C'ne 322(.
Conse<'ent&#, petitioner $i&ed a Petition $or Certiorari 'nder R'&e ;0 o$ t!e )**- Revised R'&es o$ Civi&
Proced're "it! app&ication $or te,porar# restrainin% order andOor pre&i,inar# in5'nction .e$ore t!e Co'rt o$
Appea&s a&&e%in% t!at t!e RTC co,,itted %rave a.'se o$ discretion a,o'ntin% to &ac: or e9cess o$
5'risdiction in re$'sin% to dis,iss t!e A,ended Co,p&aint. T!e Co'rt o$ Appea&s never iss'ed an#
te,porar# restrainin% order or "rit o$ in5'nction. On 4 Apri& 322;, t!e Co'rt o$ Appea&s rendered a
@ecision a$$ir,in% t!e RTC Orders o$ 4 Nove,.er 3223 and 32 C'ne 322(.
T!e $ore%oin% iss'es raised .# petitioner essentia&&# re<'ires t!is Co'rt to ,a:e a deter,ination o$ t!e 7)8
proper service o$ s',,ons and ac<'isition o$ 5'risdiction .# t!e RTC over t!e person o$ t!e petitionerD 738
e9istence o$ a ca'se o$ action a%ainst petitioner in respondentQs A,ended Co,p&aintD and 7(8 proper
ven'e $or respondentQs civi& case a%ainst petitioner.
Petitioner contends t!at Civi& Case No. MC**1;20 invo&ves an action $or co&&ection o$ s', o$ ,one# and
da,a%es arisin% $ro, t!e a&&e%ed .reac! o$ t!e @istri.'tion A%ree,ent. T!e action is one in persona,, or
an action a%ainst a person .ased on !is persona& &ia.i&it#D and $or t!e co'rt a <'o to ac<'ire 5'risdiction
over t!e person o$ t!e petitioner, persona& service o$ s',,ons, and not e9traterritoria& service o$
s',,ons, ,'st .e ,ade "it!in t!e state even i$ t!e petitioner is a non1resident. Petitioner avers t!at
e9traterritoria& service o$ s',,ons stated 'nder Section )0, R'&e )4 o$ t!e )**- Revised R'&es o$ Civi&
Proced're, is on&# proper in in re, and <'asi in re, casesD t!'s, resort to an e9traterritoria& service o$
s',,ons in t!e case at .ar "as erroneo's. Petitioner asseverates t!at t!e a&&e%ations in t!e respondentQs
A,ended Co,p&aint t!at t!e petitioner !as persona& properties "it!in t!e P!i&ippines does not ,a:e t!e
present case one t!at re&ates to, or t!e s'.5ect o$ "!ic! is, propert# "it!in t!e P!i&ippines "arrantin% t!e
e9traterritoria& service o$ s',,ons 'nder Section )0, R'&e )4 o$ t!e )**- Revised R'&es o$ Civi&
Proced're. Petitioner states t!at $or an action to .e considered as one t!at re&ates to, or t!e s'.5ect o$
"!ic! is, propert# "it!in t!e P!i&ippines, t!e ,ain s'.5ect ,atter o$ t!e action ,'st .e t!e propert# "it!in
t!e P!i&ippines itse&$, and s'c! "as not t!e sit'ation in t!is case. Li:e"ise, t!e pra#er in respondentQs
A,ended Co,p&aint $or t!e iss'ance o$ a "rit o$ attac!,ent over t!e persona& propert# o$ PEIP, "!ic! is
**P o"ned .# petitioner 7as t!e s'pposed s'ccessor o$ PEIA8, did not convert t!e action $ro, one in
persona, to one t!at is <'asi in re,. A&so, t!e petitioner points o't t!at since t!e respondentQs pra#er $or
t!e iss'ance o$ a "rit o$ attac!,ent "as denied .# t!e RTC in its Order, dated 3; Marc! )***, t!en t!e
nat're o$ Civi& Case No. MC**1;20 re,ains in persona,, contrar# to t!e r'&in% o$ t!e Co'rt o$ Appea&s
t!at .# t!e attac!,ent o$ t!e petitionerQs interest in PEIP t!e action in persona, "as converted to an
action <'asi in re,. Res'&tant&#, t!e e9traterritoria& service o$ s',,ons on t!e petitioner "as not va&id&#
e$$ected, and did not %ive t!e RTC 5'risdiction over t!e petitioner.
Petitioner $'rt!er ar%'es t!at t!e appe&&ate co'rt s!o'&d !ave %ranted its Petition $or Certiorari on t!e
%ro'nd t!at t!e RTC co,,itted %rave a.'se o$ discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction in
re$'sin% to dis,iss respondentQs A,ended Co,p&aint $or $ai&'re to state a ca'se o$ action a%ainst
petitioner "!ic! "as not t!e rea& part#1in1interest in Civi& Case No. MC**1;20. Petitioner c&ai,s t!at it !ad
never 'sed t!e na,e PEIA as its corporate na,e, and neit!er did it c!an%e its na,e $ro, t!at o$ PEIA.
Petitioner stresses t!at PEIA is an entire&# di$$erent corporate entit# t!at is not connected in "!atever
,anner to t!e petitioner. Even ass',in% ar%'endo t!at petitioner is t!e rea& part#1in1interest in Civi& Case
No. MC**1;20 or t!at petitioner and PEIA are one and t!e sa,e entit#, petitioner sti&& avo"s t!at t!e
respondent $ai&ed to state a ca'se o$ action a%ainst it .eca'se t!e @istri.'tion A%ree,ent e9press&#
%rants PEIA t!e ri%!t to ter,inate t!e said contract at an# ti,e.
Last&#, it is t!e contention o$ t!e petitioner t!at t!e appe&&ate co'rt s!o'&d !ave %ranted its Petition $or
Certiorari .eca'se t!e RTC co,,itted %rave a.'se o$ discretion a,o'ntin% to &ac: or e9cess o$
5'risdiction in re$'sin% to dis,iss Civi& Case No. MC**1;20 $or !avin% .een $i&ed in an i,proper ven'e.
Petitioner asserts t!at in t!e @istri.'tion A%ree,ent entered into .et"een t!e respondent and PEIA, .ot!
!ad ,'t'a&&# a%reed to t!e e9c&'sive 5'risdiction o$ t!e co'rts o$ Sin%apore or o$ t!e P!i&ippines as e&ected
.# PEIA. A.sent an# "aiver .# PEIA o$ its ri%!t to c!oose t!e ven'e o$ t!e disp'te, t!e Co,p&aint $i&ed .#
t!e respondent .e$ore t!e RTC in t!e P!i&ippines s!o'&d !ave .een dis,issed on t!e %ro'nd o$ i,proper
ven'e.
T!e Petition is ,eritorio's.
C'risdiction is t!e po"er "it! "!ic! co'rts are invested $or ad,inisterin% 5'sticeD t!at is, $or !earin% and
decidin% cases. In order $or t!e co'rt to !ave a't!orit# to dispose o$ t!e case on t!e ,erits, it ,'st
ac<'ire 5'risdiction over t!e s'.5ect ,atter and t!e parties.33
C'risdiction o$ t!e co'rt over t!e s'.5ect ,atter is con$erred on&# .# t!e Constit'tion or .# &a". It is
deter,ina.&e on t!e .asis o$ a&&e%ations in t!e co,p&aint.3(
Co'rts ac<'ire 5'risdiction over t!e p&ainti$$s 'pon t!e $i&in% o$ t!e co,p&aint, "!i&e 5'risdiction over t!e
de$endants in a civi& case is ac<'ired eit!er t!ro'%! t!e service o$ s',,ons 'pon t!e, in t!e ,anner
re<'ired .# &a" or t!ro'%! t!eir vo&'ntar# appearance in co'rt and t!eir s'.,ission to its a't!orit#. I$ t!e
de$endants !ave not .een s',,oned, 'n&ess t!e# vo&'ntari&# appear in co'rt, t!e co'rt ac<'ires no
5'risdiction over t!eir persons and a 5'd%,ent rendered a%ainst t!e, is n'&& and void. To .e .o'nd .# a
decision, a part# s!o'&d $irst .e s'.5ected to t!e co'rtQs 5'risdiction.34
T!'s, one o$ t!e ,odes o$ ac<'irin% 5'risdiction over t!e person o$ t!e de$endant or respondent in a civi&
case is t!ro'%! service o$ s',,ons. It is intended to %ive notice to t!e de$endant or respondent t!at a
civi& action !as .een co,,enced a%ainst !i,. T!e de$endant or respondent is t!'s p't on %'ard as to t!e
de,ands o$ t!e p&ainti$$ or t!e petitioner.30
T!e proper service o$ s',,ons di$$ers dependin% on t!e nat're o$ t!e civi& case instit'ted .# t!e p&ainti$$
or petitioner "!et!er it is in persona,, in re,, or <'asi in re,. Actions in persona,, are t!ose actions
.ro'%!t a%ainst a person on t!e .asis o$ !is persona& &ia.i&it#D actions in re, are actions a%ainst t!e t!in%
itse&$ instead o$ a%ainst t!e personD and actions are <'asi in re,, "!ere an individ'a& is na,ed as
de$endant and t!e p'rpose o$ t!e proceedin% is to s'.5ect !is or !er interest in a propert# to t!e o.&i%ation
or &oan .'rdenin% t!e propert#.3;
Under Section )0, R'&e )4 o$ t!e )**- Revised R'&es o$ Civi& Proced're, t!ere are on&# $o'r instances
"!erein a de$endant "!o is a non1resident and is not $o'nd in t!e co'ntr# ,a# .e served "it! s',,ons
.# e9traterritoria& service, to "it 7)8 "!en t!e action a$$ects t!e persona& stat's o$ t!e p&ainti$$D 738 "!en
t!e action re&ates to, or t!e s'.5ect o$ "!ic! is propert#, "it!in t!e P!i&ippines, in "!ic! t!e de$endant
c&ai,s a &ien or an interest, act'a& or contin%entD 7(8 "!en t!e re&ie$ de,anded in s'c! action consists,
"!o&&# or in part, in e9c&'din% t!e de$endant $ro, an# interest in propert# &ocated in t!e P!i&ippinesD and
748 "!en t!e de$endant non1residentQs propert# !as .een attac!ed "it!in t!e P!i&ippines. In t!ese
instances, service o$ s',,ons ,a# .e e$$ected .# 7a8 persona& service o't o$ t!e co'ntr#, "it! &eave o$
co'rtD 7.8 p'.&ication, a&so "it! &eave o$ co'rtD or 7c8 an# ot!er ,anner t!e co'rt ,a# dee, s'$$icient.3-
Undo'.ted&#, e9traterritoria& service o$ s',,ons app&ies on&# "!ere t!e action is in re, or <'asi in re,,
.'t not i$ an action is in persona,.
=!en t!e case instit'ted is an action in re, or <'asi in re,, P!i&ippine co'rts a&read# !ave 5'risdiction to
!ear and decide t!e case .eca'se, in actions in re, and <'asi in re,, 5'risdiction over t!e person o$ t!e
de$endant is not a prere<'isite to con$er 5'risdiction on t!e co'rt, provided t!at t!e co'rt ac<'ires
5'risdiction over t!e res.3+ T!'s, in s'c! instance, e9traterritoria& service o$ s',,ons can .e ,ade 'pon
t!e de$endant. T!e said e9traterritoria& service o$ s',,ons is not $or t!e p'rpose o$ vestin% t!e co'rt "it!
5'risdiction, .'t $or co,p&#in% "it! t!e re<'ire,ents o$ $air p&a# or d'e process, so t!at t!e de$endant "i&&
.e in$or,ed o$ t!e pendenc# o$ t!e action a%ainst !i, and t!e possi.i&it# t!at propert# in t!e P!i&ippines
.e&on%in% to !i, or in "!ic! !e !as an interest ,a# .e s'.5ected to a 5'd%,ent in $avor o$ t!e p&ainti$$,
and !e can t!ere.# ta:e steps to protect !is interest i$ !e is so ,inded.3* On t!e ot!er !and, "!en t!e
de$endant or respondent does not reside and is not $o'nd in t!e P!i&ippines,(2 and t!e action invo&ved is
in persona,, P!i&ippine co'rts cannot tr# an# case a%ainst !i, .eca'se o$ t!e i,possi.i&it# o$ ac<'irin%
5'risdiction over !is person 'n&ess !e vo&'ntari&# appears in co'rt.()
In t!e case at .ar, t!is Co'rt s'stains t!e contention o$ t!e petitioner t!at t!ere can never .e a va&id
e9traterritoria& service o$ s',,ons 'pon it, .eca'se t!e case .e$ore t!e co'rt a <'o invo&vin% co&&ection o$
a s', o$ ,one# and da,a%es is, indeed, an action in persona,, as it dea&s "it! t!e persona& &ia.i&it# o$
t!e petitioner to t!e respondent .# reason o$ t!e a&&e%ed 'ni&atera& ter,ination .# t!e $or,er o$ t!e
@istri.'tion A%ree,ent. Even t!e Co'rt o$ Appea&s, in its @ecision dated 4 Apri& 3224, 'p!e&d t!e nat're o$
t!e instant case as an action in persona,. In t!e said @ecision t!e appe&&ate co'rt r'&ed t!at
In t!e instant petition, ErespondentQsF ca'se o$ action in Civi& Case No. MC**1;20 is anc!ored on t!e c&ai,
t!at petitioner 'ni&atera&&# ter,inated t!e @istri.'tion A%ree,ent. T!'s, ErespondentF pra#s in its
ECFo,p&aint t!at ?Upon t!e $i&in% o$ t!e Co,p&aint, iss'e an Order $i9in% t!e a,o'nt o$ t!e .ond and iss'e
a "rit o$ attac!,ent re<'irin% t!e s!eri$$ to attac! t!e properties o$ EPer:in1E&,er P!i&ippinesF, "!ic! are
not e9e,pt $ro, e9ec'tion, and as ,'c! as ,a# .e s'$$icient to satis$# ErespondentQsF de,ands.?
T!e action instit'ted .# ErespondentF a$$ects t!e parties a&one, not t!e "!o&e "or&d. Hence, it is an action
in persona,, i.e., an# 5'd%,ent t!erein is .indin% on&# 'pon t!e parties proper&# i,p&eaded.
9 9 9
T!e o.5ective so'%!t in ErespondentQsF ECFo,p&aint "as to esta.&is! a c&ai, a%ainst petitioner $or its
a&&e%ed 'ni&atera& ter,ination o$ E@Fistri.'tion EAF%ree,ent. Hence, to repeat, Civi& Case No. MC**1;20 is
an action in persona, .eca'se it is an action a%ainst persons, na,e&#, !erein petitioner, on t!e .asis o$
its persona& &ia.i&it#. As s'c!, persona& service o$ s',,ons 'pon t!e EpetitionerF is essentia& in order $or
t!e co'rt to ac<'ire o$ 7sic8 5'risdiction over Eits personF.(3 7E,p!asis s'pp&ied.8
T!'s, .ein% an action in persona,, persona& service o$ s',,ons "it!in t!e P!i&ippines is necessar# in
order $or t!e RTC to va&id&# ac<'ire 5'risdiction over t!e person o$ t!e petitioner, and t!is is not possi.&e in
t!e present case .eca'se t!e petitioner is a non1resident and is not $o'nd "it!in t!e P!i&ippines.
RespondentQs a&&e%ation in its A,ended Co,p&aint t!at petitioner !ad persona& propert# "it!in t!e
P!i&ippines in t!e $or, o$ s!ares o$ stoc: in PEIP did not ,a:e Civi& Case No. MC**1;20 $a&& 'nder an# o$
t!e $o'r instances ,entioned in Section )0, R'&e )4 o$ t!e R'&es o$ Co'rt, as to convert t!e action in
persona, to an action in re, or <'asi in re, and, s'.se<'ent&#, ,a:e t!e e9traterritoria& service o$
s',,ons 'pon t!e petitioner va&id.
It is incorrect $or t!e RTC to !ave r'&ed t!at t!e a&&e%ations ,ade .# t!e respondent in its A,ended
Co,p&aint, "!ic! is pri,ari&# $or co&&ection o$ a s', o$ ,one# and da,a%es, t!at t!e petitioner o"ns
s!ares o$ stoc: "it!in t!e P!i&ippines to "!ic! t!e petitioner c&ai,s interest, or an act'a& or contin%ent &ien,
"o'&d ,a:e t!e case $a&& 'nder one o$ t!e a$oresaid instances "!erein e9traterritoria& service o$ s',,ons
'nder Section )0, R'&e )4 o$ t!e )**- Revised R'&es o$ Civi& Proced're, "o'&d .e va&id. T!e RTC in
arrivin% at s'c! conc&'sions re&ied on t!e second instance, ,entioned 'nder Section )0, R'&e )4 o$ t!e
)**- Revised R'&es o$ Civi& Proced're 7i.e., "!en t!e action re&ates to, or t!e s'.5ect o$ "!ic! is propert#,
"it!in t!e P!i&ippines, in "!ic! t!e de$endant c&ai,s a &ien or interest, act'a& or contin%ent8, "!ere
e9traterritoria& service o$ s',,ons can .e proper&# ,ade. Ho"ever, t!e a$oresaid second instance !as no
app&ication in t!e case .e$ore t!is Co'rt. Pri,ari&#, t!e A,ended Co,p&aint $i&ed .# t!e respondent
a%ainst t!e petitioner "as $or t!e co&&ection o$ s', o$ ,one# and da,a%es. T!e said case "as neit!er
re&ated nor connected to an# propert# o$ t!e petitioner to "!ic! it c&ai,s a &ien or interest. T!e action $or
co&&ection o$ a s', o$ ,one# and da,a%es "as p're&# .ased on t!e persona& &ia.i&it# o$ t!e petitioner
to"ards t!e respondent. T!e petitioner is correct in sa#in% t!at ?,ere a&&e%ations o$ persona& propert#
"it!in t!e P!i&ippines does not necessari&# ,a:e t!e action as one t!at re&ates to or t!e s'.5ect o$ "!ic!
is, propert# "it!in t!e P!i&ippines as to "arrant t!e e9traterritoria& service o$ s',,ons. For t!e action to
.e considered one t!at re&ates to, or t!e s'.5ect o$ "!ic!, is t!e propert# "it!in t!e P!i&ippines, t!e ,ain
s'.5ect ,atter o$ t!e action ,'st .e t!e propert# itse&$ o$ t!e petitioner in t!e P!i&ippines.? 6# ana&o%#, an
action invo&vin% tit&e to or possession o$ rea& or persona& propert# 1 1 s'c! as t!e $orec&os're o$ rea& estate
or c!atte& ,ort%a%e "!ere t!e ,ort%a%or does not reside or is not $o'nd in t!e P!i&ippines 1 1 can .e
considered as an action "!ic! re&ates to, or t!e s'.5ect o$ "!ic! is, propert# "it!in t!e P!i&ippines, in
"!ic! t!e de$endant c&ai,s a &ien or interest, act'a& or contin%entD and in s'c! instance, 5'd%,ent "i&& .e
&i,ited to t!e res.((
Moreover, t!e a&&e%ations ,ade .# t!e respondent t!at t!e petitioner !as propert# "it!in t!e P!i&ippines
"ere in s'pport o$ its app&ication $or t!e iss'ance o$ a "rit o$ attac!,ent, "!ic! "as denied .# t!e RTC.
Hence, it is c&ear $ro, t!e $ore%oin% t!at t!e Co,p&aint $i&ed .# t!e respondent a%ainst t!e petitioner does
not rea&&# re&ate to, or t!e s'.5ect o$ "!ic! is, propert# "it!in t!e P!i&ippines o$ t!e petitioner.
T!is Co'rt a&so $inds error in t!e @ecision o$ t!e Co'rt o$ Appea&s. It is provided $or in t!e said @ecision,
t!'s
Ho"ever, &et it .e e,p!asiJed t!at in t!e ECFo,p&aint $i&ed .e$ore t!e tria& co'rt, ErespondentF pra#ed t!at
?Upon t!e $i&in% o$ t!e Co,p&aint, iss'e an Order $i9in% t!e a,o'nt o$ t!e .ond and iss'e a "rit o$
attac!,ent re<'irin% t!e s!eri$$ to attac! t!e properties o$ EPer:in1E&,er P!i&ippinesF, "!ic! are not
e9e,pt $ro, e9ec'tion, and as ,'c! as ,a# .e s'$$icient to satis$# ErespondentQsF de,ands.
In ot!er "ords, a&t!o'%! t!e ECFo,p&aint .e$ore t!e tria& co'rt does not invo&ve t!e persona& stat's o$ t!e
ErespondentF, nevert!e&ess, t!e case invo&ves propert# "it!in t!e P!i&ippines in "!ic! t!e EpetitionerF !as
or c&ai, an interest, or "!ic! t!e ErespondentF !as attac!ed, "!ic! is one o$ t!e instances "!ere
e9traterritoria& service o$ s',,ons is proper.
9 9 9
Hence, it is s'.,itted t!at one o$ t!e instances "!en e9territoria& service o$ s',,ons 'nder Section )0,
R'&e )4 o$ t!e R'&es o$ Co'rt is proper ,a# .e considered to !ave .een ,et. T!is is .eca'se t!e
ECFo,p&aint $or co&&ection o$ s', o$ ,one# "!ic! is an action in persona, "as converted into an action
<'asi in re, .# t!e attac!,ent o$ EpetitionerQsF interest in EPer:in1E&,er P!i&ippinesF.(4 7E,p!asis
s'pp&ied.8
RespondentQs a&&e%ation in its A,ended Co,p&aint t!at petitioner !ad persona& propert# "it!in t!e
P!i&ippines in t!e $or, o$ s!ares o$ stoc: in PEIP does not convert Civi& Case No. MC**1;20 $ro, an
action in persona, to one <'asi in re,, so as to <'a&i$# said case 'nder t!e $o'rt! instance ,entioned in
Section )0, R'&e )4 o$ t!e )**- Revised R'&es o$ Civi& Proced're 7i.e., "!en t!e non1resident de$endantQs
propert# !as .een attac!ed "it!in t!e P!i&ippines8, "!erein e9traterritoria& service o$ s',,ons 'pon t!e
petitioner "o'&d !ave .een va&id. It is "ort!# to note t!at "!at is re<'ired 'nder t!e a$oresaid provision o$
t!e Revised R'&es o$ Civi& Proced're is not a ,ere a&&e%ation o$ t!e e9istence o$ persona& propert#
.e&on%in% to t!e non1resident de$endant "it!in t!e P!i&ippines .'t, ,ore precise&#, t!at t!e non1resident
de$endantQs persona& propert# &ocated "it!in t!e P!i&ippines ,'st !ave .een act'a&&# attac!ed. T!is Co'rt
in t!e case o$ Ient'ranJa v. Co'rt o$ Appea&s(0 r'&ed t!at "!en t!e attac!,ent "as void $ro, t!e
.e%innin%, t!e action in persona, "!ic! re<'ired persona& service o$ s',,ons "as never converted into
an action in re, "!ere service .# p'.&ication "o'&d !ave .een va&id. Hence, t!e appe&&ate co'rt erred in
dec&arin% t!at t!e present case, "!ic! is an action in persona,, "as converted to an action <'asi in re,
.eca'se o$ respondentQs a&&e%ations in its A,ended Co,p&aint t!at petitioner !ad persona& propert# "it!in
t!e P!i&ippines.
G&arin%&#, respondentQs pra#er in its A,ended Co,p&aint $or t!e iss'ance o$ a "rit o$ attac!,ent over
petitionerQs p'rported s!ares o$ stoc: in PEIP &ocated "it!in t!e P!i&ippines "as denied .# t!e co'rt a <'o
in its Order dated 3; Marc! )***. RespondentQs Motion $or Reconsideration o$ t!e said Order "as
&i:e"ise denied .# t!e RTC in its s'.se<'ent Order, dated )) Can'ar# 3222. Evident&#, petitionerQs a&&e%ed
persona& propert# "it!in t!e P!i&ippines, in t!e $or, o$ s!ares o$ stoc: in PEIP, !ad not .een attac!edD
!ence, Civi& Case No. MC**1;20, $or co&&ection o$ s', o$ ,one# and da,a%es, re,ains an action in
persona,. As a res'&t, t!e e9traterritoria& service o$ s',,ons "as not va&id&# e$$ected .# t!e RTC a%ainst
t!e petitioner, and t!e RTC t!'s $ai&ed to ac<'ire 5'risdiction over t!e person o$ t!e petitioner. T!e RTC is
t!ere$ore .ere$t o$ an# a't!orit# to act 'pon t!e Co,p&aint $i&ed .e$ore it .# t!e respondent inso$ar as t!e
petitioner is concerned.
I$ t!ere "as no va&id s',,ons served 'pon petitioner, co'&d RTC !ave ac<'ired 5'risdiction over t!e
person o$ t!e petitioner .# t!e &atterQs vo&'ntar# appearanceR As a r'&e, even i$ t!e service o$ s',,ons
'pon t!e de$endant or respondent in a civi& case is de$ective, t!e co'rt can sti&& ac<'ire 5'risdiction over !is
person "!en !e vo&'ntar# appears in co'rt or s'.,its !i,se&$ to its a't!orit#. Nonet!e&ess, vo&'ntar#
appearance, as a ,ode o$ ac<'irin% 5'risdiction over t!e person o$ t!e de$endant, is &i:e"ise inapp&ica.&e
in t!is case.
It is sett&ed t!at a part# "!o ,a:es a specia& appearance in co'rt $or t!e p'rpose o$ c!a&&en%in% t!e
5'risdiction o$ said co'rt, .ased on t!e inva&idit# o$ t!e service o$ s',,ons, cannot .e considered to !ave
vo&'ntari&# s'.,itted !i,se&$ to t!e 5'risdiction o$ t!e co'rt.(; In t!e present case, petitioner !as .een
consistent in a&& its p&eadin%s in assai&in% t!e service o$ s',,ons 'pon it and t!e 5'risdiction o$ t!e RTC
over its person. T!'s, t!e petitioner cannot .e dec&ared in estoppe& "!en it $i&ed an Ans"er ad ca'te&a,
"it! co,p'&sor# co'nterc&ai, .e$ore t!e RTC "!i&e t!e instant Petition "as sti&& pendin% .e$ore t!is Co'rt.
T!e petitioner "as in a sit'ation "!erein it !ad no ot!er c!oice .'t to $i&e an Ans"erD ot!er"ise, t!e RTC
"o'&d !ave a&read# dec&ared t!at petitioner !ad "aived its ri%!t to $i&e responsive p&eadin%s.(- Neit!er
can t!e co,p'&sor# co'nterc&ai, contained in petitionerQs Ans"er ad ca'te&a, .e considered as vo&'ntar#
appearance o$ petitioner .e$ore t!e RTC. Petitioner see:s to recover da,a%es and attorne#Qs $ees as a
conse<'ence o$ t!e 'n$o'nded s'it $i&ed .# respondent a%ainst it. T!'s, petitionerQs co,p'&sor#
co'nterc&ai, is on&# consistent "it! its position t!at t!e respondent "ron%$'&&# $i&ed a case a%ainst it and
t!e RTC erroneo's&# e9ercised 5'risdiction over its person.
@istinction ,'st .e ,ade in Civi& Case No. MC**1;20 as to t!e 5'risdiction o$ t!e RTC over respondentQs
co,p&aint and over petitionerQs co'nterc&ai, 1 1 "!i&e it ,a# !ave no 5'risdiction over t!e $or,er, it ,a#
e9ercise 5'risdiction over t!e &atter. T!e co,p'&sor# co'nterc&ai, attac!ed to petitionerQs Ans"er ad
ca'te&a, can .e treated as a separate action, "!erein petitioner is t!e p&ainti$$ "!i&e respondent is t!e
de$endant.(+ Petitioner co'&d !ave instit'ted a separate action $or t!e ver# sa,e c&ai,s .'t, $or t!e sa:e
o$ e9pedienc# and to avoid ,'&tip&icit# o$ s'its, it c!ose to de,and t!e sa,e in Civi& Case No. MC**1
;20.(* C'risdiction o$ t!e RTC over t!e s'.5ect ,atter and t!e parties in t!e co'nterc&ai, ,'st t!'s .e
deter,ined separate&# and independent&# $ro, t!e 5'risdiction o$ t!e sa,e co'rt in t!e sa,e case over
t!e s'.5ect ,atter and t!e parties in respondentQs co,p&aint.
Moreover, even t!o'%! t!e petitioner raised ot!er %ro'nds in its Motion to @is,iss aside $ro, &ac: o$
5'risdiction over its person, t!e sa,e is not tanta,o'nt to its vo&'ntar# appearance or s'.,ission to t!e
a't!orit# o$ t!e co'rt a <'o. =!i&e in @e Mid%e&# v. Ferandos,42 it "as !e&d t!at, in a Motion to @is,iss,
t!e a&&e%ation o$ %ro'nds ot!er t!an &ac: o$ 5'risdiction over t!e person o$ t!e de$endant, inc&'din% a
pra#er ?$or s'c! ot!er re&ie$s as? ,a# .e dee,ed ?appropriate and proper? a,o'nted to vo&'ntar#
appearance, s'c! r'&in% ,'st .e dee,ed s'perseded .# t!e dec&aration o$ t!is Co'rt in La Nava& @r'%
Corporation v. Co'rt o$ Appea&s4) t!at estoppe& .# 5'risdiction ,'st .e 'ne<'ivoca& and intentiona&. It
"o'&d .e a.s'rd to !o&d t!at petitioner 'ne<'ivoca&&# and intentiona&&# s'.,itted itse&$ to t!e 5'risdiction o$
t!e co'rt .# see:in% ot!er re&ie$s to "!ic! it ,i%!t .e entit&ed "!en t!e on&# re&ie$ t!at it co'&d proper&# as:
$ro, t!e tria& co'rt is t!e dis,issa& o$ t!e co,p&aint a%ainst it.43 T!'s, t!e a&&e%ation o$ %ro'nds ot!er t!an
&ac: o$ 5'risdiction "it! a pra#er ?$or s'c! ot!er re&ie$s? as ,a# .e dee,ed ?appropriate and proper?
cannot .e considered as 'ne<'ivoca& and intentiona& estoppe&. Most te&&in% is Section 32, R'&e )4 o$ t!e
R'&es o$ Co'rt, "!ic! e9press&# provides
SEC. 32. Io&'ntar# appearance. 1 T!e de$endantQs vo&'ntar# appearance in t!e action s!a&& .e e<'iva&ent
to service o$ s',,ons. T!e inc&'sion in a ,otion to dis,iss o$ ot!er %ro'nds aside $ro, &ac: o$
5'risdiction over t!e person o$ t!e de$endant s!a&& not .e dee,ed a vo&'ntar# appearance.4( 7E,p!asis
s'pp&ied.8
In s',, t!is Co'rt $inds t!at t!e petitioner did not s'.,it itse&$ vo&'ntari&# to t!e a't!orit# o$ t!e co'rt a
<'oD and in t!e a.sence o$ va&id service o$ s',,ons, t!e RTC 'tter&# $ai&ed to ac<'ire 5'risdiction over t!e
person o$ t!e petitioner.
Anent t!e e9istence o$ a ca'se o$ action a%ainst petitioner and t!e proper ven'e o$ t!e case, t!is Co'rt
'p!o&ds t!e $indin%s o$ t!e RTC on t!ese iss'es.
@is,issa& o$ a Co,p&aint $or $ai&'re to state a ca'se o$ action is provided $or .# t!e R'&es o$ Co'rt.44
=!en a Motion to @is,iss is %ro'nded on t!e $ai&'re to state a ca'se o$ action, a r'&in% t!ereon s!o'&d .e
.ased on&# on t!e $acts a&&e%ed in t!e co,p&aint. T!e co'rt ,'st pass 'pon t!is iss'e .ased so&e&# on
s'c! a&&e%ations, ass',in% t!e, to .e tr'e. For it to do ot!er"ise "o'&d .e a proced'ra& error and a
denia& o$ p&ainti$$Qs ri%!t to d'e process.40 =!i&e, tr'&#, t!ere are "e&&1reco%niJed e9ceptions4; to t!e r'&e
t!at t!e a&&e%ations are !#pot!etica&&# ad,itted as tr'e and in<'ir# is con$ined to t!e $ace o$ t!e
co,p&aint,4- none o$ t!e e9ceptions app&# in t!is case. Hence, t!e %enera& r'&e app&ies. T!e de$ense o$
t!e petitioner t!at it is not t!e rea& part#1in1interest is evidentiar# in nat're "!ic! ,'st .e proven in tria&.
T!e appe&&ate co'rt, t!en, cannot .e $a'&ted $or not %rantin% petitionerQs Motion to @is,iss on t!e %ro'nd
o$ $ai&'re to state a ca'se o$ action.
In t!e sa,e "a#, t!e appe&&ate co'rt did not err in den#in% petitionerQs Motion to @is,iss Civi& Case No.
MC**1;20 on t!e %ro'nd o$ i,proper ven'e. In arrivin% at s'c! conc&'sion, t!is Co'rt <'otes "it!
approva& t!e $o&&o"in% ratiocination o$ t!e RTC
As $or t!e contention t!at ven'e "as i,proper&# &aid, 9 9 9, t!e Etria& co'rtF in its '&ti,ate desire t!at t!e
ends o$ 5'stice co'&d .e served in its $'&&est, cannot r'&e t!at ven'e "as i,proper&# &aid.
9 9 9
T!e stip'&ation as to t!e ven'e o$ a prospective action does not prec&'de t!e $i&in% o$ t!e s'it in t!e
residence o$ t!e ErespondentF 'nder Section 3, R'&e 4, R'&es o$ Co'rt, especia&&# "!ere t!e ven'e
stip'&ation "as i,posed .# t!e EpetitionerF $or its o"n .ene$its.4+ 7E,p!asis s'pp&ied.8
@espite t!e ven'e stip'&ation $o'nd in t!e @istri.'tion A%ree,ent stip'&atin% t!at t!e e9c&'sive 5'risdiction
over disp'tes arisin% $ro, t!e sa,e s!a&& &ie in t!e co'rts o$ Sin%apore or o$ t!e Territor# 7re$errin% to t!e
P!i&ippines8, "!ic!ever is e&ected .# PEIA 7or petitioner, as PEIAQs a&&e%ed s'ccessor8, t!e RTC o$ t!e
P!i&ippines cannot .e considered as an i,proper ven'e. Tr'&#, t!e ven'e stip'&ation 'sed t!e "ord
?e9c&'sive,? !o"ever, a c&oser &oo: on t!e @istri.'tion A%ree,ent "o'&d revea& t!at t!e ven'e stip'&ation
"as rea&&# in t!e a&ternative i.e., co'rts o$ Sin%apore or o$ t!e Territor#, ,eanin%, t!e P!i&ippinesD t!'s, t!e
co'rt a <'o is not an i,proper ven'e $or t!e present case.
Nonet!e&ess, it .ears to e,p!asiJe t!at despite o'r $indin%s t!at .ased on t!e a&&e%ations in respondentQs
Co,p&aint in Civi& Case No. MC**1;20, respondent appears to !ave a ca'se o$ action a%ainst t!e
petitioner and t!at t!e RTC is t!e proper ven'e $or t!e said case, Civi& Case No. MC**1;20 is sti&&
dis,issi.&e, $or t!e RTC never ac<'ired 5'risdiction over t!e person o$ t!e petitioner. T!e e9traterritoria&
service o$ s',,ons 'pon t!e petitioner prod'ces no e$$ect .eca'se it can on&# .e done i$ t!e action is in
re, or <'asi in re,. T!e case $or co&&ection o$ s', o$ ,one# and da,a%es $i&ed .# t!e respondent
a%ainst t!e petitioner .ein% an action in persona,, t!en persona& service o$ s',,ons 'pon t!e petitioner
"it!in t!e P!i&ippines is essentia& $or t!e RTC to va&id&# ac<'ire 5'risdiction over t!e person o$ t!e
petitioner. Havin% $ai&ed to do so, t!e RTC can never s'.5ect petitioner to its 5'risdiction. T!e ,ere
a&&e%ation ,ade .# t!e respondent t!at t!e petitioner !ad s!ares o$ stoc: "it!in t!e P!i&ippines "as not
eno'%! to convert t!e action $ro, one in persona, to one t!at "as <'asi in re,, $or petitionerQs p'rported
persona& propert# "as never attac!edD t!'s, t!e e9traterritoria& service o$ s',,ons 'pon t!e petitioner
re,ains inva&id. In &i%!t o$ t!e $ore%oin% $indin%s, t!is Co'rt conc&'des t!at t!e RTC !as no po"er to !ear
and decide t!e case a%ainst t!e petitioner, .eca'se t!e e9traterritoria& service o$ s',,ons "as not va&id&#
e$$ected 'pon t!e petitioner and t!e RTC never ac<'ired 5'risdiction over its person.
Fina&&#, as re%ards t!e petitionerQs co'nterc&ai,, "!ic! is p're&# $or da,a%es and attorne#Qs $ees .#
reason o$ t!e 'n$o'nded s'it $i&ed .# t!e respondent a%ainst it, it !as &on% .een sett&ed t!at t!e sa,e tr'&#
$a&&s 'nder t!e c&assi$ication o$ co,p'&sor# co'nterc&ai, and it ,'st .e p&eaded in t!e sa,e action,
ot!er"ise, it is .arred.4* In t!e case at .ar, t!is Co'rt orders t!e dis,issa& o$ t!e Co,p&aint $i&ed .# t!e
respondent a%ainst t!e petitioner .eca'se t!e co'rt a <'o $ai&ed to ac<'ire 5'risdiction over t!e person o$
t!e &atter. Since t!e Co,p&aint o$ t!e respondent "as dis,issed, "!at "i&& !appen t!en to t!e
co'nterc&ai, o$ t!e petitionerR @oes t!e dis,issa& o$ t!e co,p&aint carr# "it! it t!e dis,issa& o$ t!e
co'nterc&ai,Rcra&a" &i.rar#
In t!e cases o$ Meta& En%ineerin% Reso'rces Corp. v. Co'rt o$ Appea&s,02 Internationa& Container
Ter,ina& Services, Inc. v. Co'rt o$ Appea&s,0) and 6A Finance Corporation v. Co.,03 t!e Co'rt r'&ed t!at
i$ t!e co'rt does not !ave 5'risdiction to entertain t!e ,ain action o$ t!e case and dis,isses t!e sa,e,
t!en t!e co,p'&sor# co'nterc&ai,, .ein% anci&&ar# to t!e principa& controvers#, ,'st &i:e"ise .e dis,issed
since no 5'risdiction re,ained $or an# %rant o$ re&ie$ 'nder t!e co'nterc&ai,.0( I$ "e $o&&o" t!e a$oresaid
prono'nce,ent o$ t!e Co'rt in t!e cases ,entioned a.ove, t!e co'nterc&ai, o$ t!e !erein petitioner .ein%
co,p'&sor# in nat're ,'st a&so .e dis,issed to%et!er "it! t!e Co,p&aint. Ho"ever, in t!e case o$ Pin%a
v. Heirs o$ Ger,an Santia%o,04 t!e Co'rt e9p&icit&# e9pressed t!at
Si,i&ar&#, C'stice Feria notes t!at ?t!e present r'&e rea$$ir,s t!e ri%!t o$ t!e de$endant to ,ove $or t!e
dis,issa& o$ t!e co,p&aint and to prosec'te !is co'nterc&ai,, as stated in t!e separate opinion Eo$ C'stice
Re%a&ado in 6A FinanceF. Retired Co'rt o$ Appea&s C'stice Hererra prono'nces t!at t!e a,end,ent to
Section (, R'&e )- Eo$ t!e )**- Revised R'&es o$ Civi& Proced'reF sett&es t!at ?na%%in% <'estion ?"!et!er
t!e dis,issa& o$ t!e co,p&aint carries "it! it t!e dis,issa& o$ t!e co'nterc&ai,, and opines t!at .# reason
o$ t!e a,end,ents, t!e r'&in%s in Meta&s En%ineerin%, Internationa& Container, and 6A Finance ?,a# .e
dee,ed a.andoned.? 9 9 9.
9 9 9, "!en t!e Co'rt pro,'&%ated t!e )**- R'&es o$ Civi& Proced're, inc&'din% t!e a,ended R'&e )-,
t!ose previo's 5'ra& doctrines t!at "ere inconsistent "it! t!e ne" r'&es incorporated in t!e )**- R'&es o$
Civi& Proced're "ere i,p&icit&# a.andoned inso$ar as incidents arisin% a$ter t!e e$$ectivit# o$ t!e ne"
proced'ra& r'&es on ) C'&# )**-. 6A Finance, or even t!e doctrine t!at a co'nterc&ai, ,a# .e necessari&#
dis,issed a&on% "it! t!e co,p&aint, c&ear&# con$&icts "it! t!e )**- R'&es o$ Civi& Proced're. T!e
a.andon,ent o$ 6A Finance as doctrine e9tends as $ar .ac: as )**-, "!en t!e Co'rt adopted t!e ne"
R'&es o$ Civi& Proced're. I$, since t!en, a.andon,ent !as not .een a$$ir,ed in 5'rispr'dence, it is on&#
.eca'se no proper case !as arisen t!at "o'&d "arrant e9press con$ir,ation o$ t!e ne" r'&e. T!at
opport'nit# is !ere and no", and "e t!'s r'&e t!at t!e dis,issa& o$ a co,p&aint d'e to $a'&t o$ t!e p&ainti$$
is "it!o't pre5'dice to t!e ri%!t o$ t!e de$endant to prosec'te an# pendin% co'nterc&ai,s o$ "!atever
nat're in t!e sa,e or separate action. =e con$ir, t!at 6A Finance and a&& previo's r'&in%s o$ t!e Co'rt
t!at are inconsistent "it! t!is present !o&din% are no" a.andoned.00 EE,p!asis s'pp&iedF.
It is tr'e t!at t!e a$oresaid dec&aration o$ t!e Co'rt re$ers to instances covered .# Section (, R'&e )- o$
t!e )**- Revised R'&es o$ Civi& Proced're0; on dis,issa& o$ t!e co,p&aint d'e to t!e $a'&t o$ t!e p&ainti$$.
Nonet!e&ess, it does not a&so prec&'de t!e app&ication o$ t!e sa,e to t!e instant case 5'st .eca'se t!e
dis,issa& o$ respondentQs Co,p&aint "as 'pon t!e instance o$ t!e petitioner "!o correct&# ar%'ed &ac: o$
5'risdiction over its person.
A&so in t!e case o$ Pin%a v. Heirs o$ Ger,an Santia%o, t!e Co'rt disc'ssed t!e sit'ation "!erein t!e ver#
$i&in% o$ t!e co,p&aint .# t!e p&ainti$$ a%ainst t!e de$endant ca'sed t!e vio&ation o$ t!e &atterQs ri%!ts. As to
"!et!er t!e dis,issa& o$ s'c! a co,p&aint s!o'&d a&so inc&'de t!e dis,issa& o$ t!e co'nterc&ai,, t!e Co'rt
ac:no"&ed%ed t!at said ,atter is sti&& de.ata.&e, viJ
=!atever t!e nat're o$ t!e co'nterc&ai,, it .ears t!e sa,e inte%ra& c!aracteristics as a co,p&aintD na,e&#
a ca'se 7or ca'ses8 o$ action constit'tin% an act or o,ission .# "!ic! a part# vio&ates t!e ri%!t o$ anot!er.
T!e ,ain di$$erence &ies in t!at t!e ca'se o$ action in t!e co'nterc&ai, is ,aintained .# t!e de$endant
a%ainst t!e p&ainti$$, "!i&e t!e converse !o&ds tr'e "it! t!e co,p&aint. Bet, as "it! a co,p&aint, a
co'nterc&ai, "it!o't a ca'se o$ action cannot s'rvive.
9 9 9 i$ t!e dis,issa& o$ t!e co,p&aint so,e!o" e&i,inates t!e ca'se7s8 o$ t!e co'nterc&ai,, t!en t!e
co'nterc&ai, cannot s'rvive. Bet t!at !ard&# is t!e case, especia&&# as a %enera& r'&e. More o$ten t!an not,
t!e a&&e%ations t!at $or, t!e co'nterc&ai, are rooted in an act or o,ission o$ t!e p&ainti$$ ot!er t!an t!e
p&ainti$$Qs ver# act o$ $i&in% t!e co,p&aint. Moreover, s'c! acts or o,issions i,p'ted to t!e p&ainti$$ are
o$ten c&ai,ed to !ave occ'rred prior to t!e $i&in% o$ t!e co,p&aint itse&$. T!e on&# apparent e9ception to t!is
circ',stance is i$ it is a&&e%ed in t!e co'nterc&ai, t!at t!e ver# act o$ t!e p&ainti$$ in $i&in% t!e co,p&aint
precise&# ca'ses t!e vio&ation o$ t!e de$endantQs ri%!ts. Bet even in s'c! an instance, it re,ains de.ata.&e
"!et!er t!e dis,issa& or "it!dra"a& o$ t!e co,p&aint is s'$$icient to o.viate t!e pendin% ca'se o$ action
,aintained .# t!e de$endant a%ainst t!e p&ainti$$.0- STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
6ased on t!e a$ore<'oted r'&in% o$ t!e Co'rt, i$ t!e dis,issa& o$ t!e co,p&aint so,e!o" e&i,inates t!e
ca'se o$ t!e co'nterc&ai,, t!en t!e co'nterc&ai, cannot s'rvive. Converse&#, i$ t!e co'nterc&ai, itse&$
states s'$$icient ca'se o$ action t!en it s!o'&d stand independent&# o$ and s'rvive t!e dis,issa& o$ t!e
co,p&aint. No", !avin% .een direct&# con$ronted "it! t!e pro.&e, o$ "!et!er t!e co,p'&sor# co'nterc&ai,
.# reason o$ t!e 'n$o'nded s'it ,a# prosper even i$ t!e ,ain co,p&aint !ad .een dis,issed, "e r'&e in
t!e a$$ir,ative.
It .ears to e,p!asiJe t!at petitionerQs co'nterc&ai, a%ainst respondent is $or da,a%es and attorne#Qs $ees
arisin% $ro, t!e 'n$o'nded s'it. =!i&e respondentQs Co,p&aint a%ainst petitioner is a&read# dis,issed,
petitioner ,a# !ave ver# "e&& a&read# inc'rred da,a%es and &iti%ation e9penses s'c! as attorne#Qs $ees
since it "as $orced to en%a%e &e%a& representation in t!e P!i&ippines to protect its ri%!ts and to assert &ac:
o$ 5'risdiction o$ t!e co'rts over its person .# virt'e o$ t!e i,proper service o$ s',,ons 'pon it. Hence,
t!e ca'se o$ action o$ petitionerQs co'nterc&ai, is not e&i,inated .# t!e ,ere dis,issa& o$ respondentQs
co,p&aint.
It ,a# a&so do "e&& to re,e,.er t!at it is t!is Co'rt "!ic! ,andated t!at c&ai,s $or da,a%es and
attorne#Qs $ees .ased on 'n$o'nded s'it constit'te co,p'&sor# co'nterc&ai, "!ic! ,'st .e p&eaded in t!e
sa,e action or, ot!er"ise, it s!a&& .e .arred. It "i&& t!en .e ini<'ito's and t!e !ei%!t o$ in5'stice to re<'ire
t!e petitioner to ,a:e t!e co'nterc&ai, in t!e present action, 'nder t!reat o$ &osin% !is ri%!t to c&ai, t!e
sa,e ever a%ain in an# ot!er co'rt, #et ,a:e !is ri%!t tota&&# dependent on t!e $ate o$ t!e respondentQs
co,p&aint.
I$ indeed t!e Co'rt dis,isses petitionerQs co'nterc&ai, so&e&# on t!e .asis o$ t!e dis,issa& o$ respondentQs
Co,p&aint, t!en "!at re,ed# is &e$t $or t!e petitionerR It can .e said t!at !e can sti&& $i&e a separate action
to recover t!e da,a%es and attorne#Qs $ees .ased on t!e 'n$o'nded s'it $or !e cannot .e .arred $ro,
doin% so since !e did $i&e t!e co,p'&sor# co'nterc&ai, in t!e present action, on&# t!at it "as dis,issed
"!en respondentQs Co,p&aint "as dis,issed. Ho"ever, t!is reasonin% is !i%!&# $&a"ed and irrationa&
considerin% t!at petitioner, a&read# .'rdened .# t!e da,a%es and attorne#Qs $ees it ,a# !ave inc'rred in
t!e present case, ,'st a%ain inc'r ,ore da,a%es and attorne#Qs $ees in p'rs'in% a separate action,
"!en, in t!e $irst p&ace, it s!o'&d not !ave .een invo&ved in an# case at a&&.
Since petitionerQs co'nterc&ai, is co,p'&sor# in nat're and its ca'se o$ action s'rvives t!at o$ t!e
dis,issa& o$ respondentQs co,p&aint, t!en it s!o'&d .e reso&ved .ased on its o"n ,erits and evidentiar#
s'pport.
=HEREFORE, pre,ises considered, t!e instant Petition is !ere.# GRANTE@. T!e @ecision o$ t!e Co'rt
o$ Appea&s, dated 4 Apri& 322;, in CA1G.R. SP No. -+*+), a$$ir,in% t!e Orders, dated 4 Nove,.er 3223
and 32 C'ne 322(, o$ t!e Re%iona& Tria& Co'rt o$ Manda&'#on% Cit#, 6ranc! 3)3, in Civi& Case No. MC**1
;20, is !ere.# REIERSE@ AN@ SET ASI@E. RespondentQs A,ended Co,p&aint in Civi& Case No. MC**1
;20 as a%ainst t!e petitioner is !ere.# ordered @ISMISSE@, and a&& t!e proceedin%s a%ainst petitioner in
t!e co'rt a <'o .# virt'e t!ereo$ are !ere.# @ECLARE@ NULL AN@ IOI@. T!e Re%iona& Tria& Co'rt o$
Manda&'#on% Cit#, 6ranc! 3)3, is @IRECTE@ to proceed "it!o't $'rt!er de&a# "it! t!e reso&'tion o$
respondentQs Co,p&aint in Civi& Case No. MC**1;20 as to de$endant PEIP, as "e&& as petitionerQs
co'nterc&ai,. No costs.
SO OR@ERE@.
OPTIMA REALTB CORPORATION, Petitioner, v. HERTc PHIL. EHCLUSIIE CARS, INC., Respondent.
Opti,a is en%a%ed in t!e .'siness o$ &easin% and rentin% o't co,,ercia& spaces and .'i&din%s to its
tenants. On )3 @ece,.er 3223, it entered into a Contract o$ Lease "it! respondent over a )()1s<'are1
,eter o$$ice 'nit and a par:in% s&ot in t!e Opti,a 6'i&din% FOR A period o$ t"o #ears and $ive ,ont!s,
Renovations in t!e Opti,a 6'i&din% co,,enced in Can'ar# and ended in Nove,.er 3220. As a res'&t,
HertJ a&&e%ed t!at it e9perienced a 02P drop in ,ont!&# sa&es and a si%ni$icant decrease in its personne&Qs
prod'ctivit#. It t!en re<'ested a 02P disco'nt on its rent $or t!e ,ont!s o$ Ma#, C'ne, C'&# and A'%'st
3220.
On + @ece,.er 3220, Opti,a %ranted t!e re<'est o$ HertJ.)2STrU]&) Ho"ever, t!e &atter sti&& $ai&ed to pa#
its renta&s $or t!e ,ont!s o$ A'%'st to @ece,.er o$ 3220 and Can'ar# to Fe.r'ar# 322;,))STrU]&) or a
tota& o$ seven ,ont!s. In addition, HertJ &i:e"ise $ai&ed to pa# its 'ti&it# .i&&s $or t!e ,ont!s o$ Nove,.er
and @ece,.er o$ 3220 and Can'ar# and Fe.r'ar# o$ 322;,)3STrU]&) or a tota& o$ $o'r ,ont!s.cra&a"&i.rar#
On + @ece,.er 3220, Opti,a "rote anot!er &etter to HertJ,)(STrU]&) re,indin% t!e &atter t!at t!e Contract
o$ Lease co'&d .e rene"ed on&# .# a ne" ne%otiation .et"een t!e parties and 'pon "ritten notice .# t!e
&essee to t!e &essor at &east *2 da#s prior to t!e ter,ination o$ t!e &ease period.)4STrU]&) As no &etter "as
received $ro, HertJ re%ardin% its intention to see: ne%otiation and e9tension o$ t!e &ease contract "it!in
t!e *21da# period, Opti,a in$or,ed it t!at t!e &ease "o'&d e9pire on 3+ Fe.r'ar# 322; and "o'&d not .e
rene"ed.)0STrU]&)
On 3) @ece,.er 3220, HertJ "rote a &etter .e&ated&# advisin% Opti,a o$ t!e $or,erQs desire to ne%otiate
and e9tend t!e &ease.);STrU]&) Ho"ever, as t!e Contract o$ Lease provided t!at t!e notice to ne%otiate its
rene"a& ,'st .e %iven .# t!e &essee at &east *2 da#s prior to t!e e9piration o$ t!e contract, petitioner no
&on%er entertained respondentQs notice.cra&a"&i.rar#
On (2 Can'ar# 322;, HertJ $i&ed a Co,p&aint $or Speci$ic Per$or,ance, In5'nction and @a,a%es andOor
S', o$ Mone# "it! pra#er $or t!e iss'ance o$ a Te,porar# Restrainin% Order 7TRO8 and =rit o$
Pre&i,inar# In5'nction 7Co,p&aint $or Speci$ic Per$or,ance8 a%ainst Opti,a. In t!at Co,p&aint, HertJ
pra#ed $or t!e iss'ance o$ a TRO to en5oin petitioner $ro, co,,ittin% acts t!at "o'&d tend to disr'pt
respondentQs peace$'& 'se and possession o$ t!e &eased pre,isesD $or a =rit o$ Pre&i,inar# In5'nction
orderin% petitioner to reconnect its 'ti&itiesD $or petitioner to .e ordered to rene%otiate a rene"a& o$ t!e
Contract o$ LeaseD and $or act'a&, ,ora& and e9e,p&ar# da,a%es, as "e&& as attorne#Qs $ees and
costs.cra&a"&i.rar#
On ) Marc! 322;, Opti,a, t!ro'%! co'nse&, "rote HertJ a &etter re<'irin% t!e &atter to s'rrender and
vacate t!e &eased pre,ises in vie" o$ t!e e9piration o$ t!e Contract o$ Lease on 3+ Fe.r'ar#
322;.)-STrU]&) It &i:e"ise de,anded pa#,ent o$ t!e s', o$ R432,*;-.3+ in renta& arreara%es, 'npaid
'ti&it# .i&&s and ot!er c!ar%es.)+STrU]&) HertJ, !o"ever, re$'sed to vacate t!e &eased pre,ises.)*STrU]&) As
a res'&t, Opti,a "as constrained to $i&e .e$ore t!e MeTC a Co,p&aint $or Un&a"$'& @etainer and @a,a%es
"it! Pra#er $or t!e Iss'ance o$ a TRO andOor Pre&i,inar# Mandator# In5'nction 7Un&a"$'& @etainer
Co,p&aint8 a%ainst HertJ.32STrU]&)
On )4 Marc! 322;, S',,ons $or t!e Un&a"$'& @etainer Co,p&aint "as served on Henr# 6o.i&es, <'a&it#
contro& s'pervisor o$ HertJ, "!o co,p&ied "it! t!e te&ep!one instr'ction o$ ,ana%er R'd# Tirador to
receive t!e S',,ons.3)STrU]&)
On 3+ Marc! 322;, or )4 da#s a$ter service o$ t!e S',,ons, HertJ $i&ed a Motion $or Leave o$ Co'rt to $i&e
Ans"er "it! Co'nterc&ai, and to Ad,it Ans"er "it! Co'nterc&ai, 7Motion $or Leave to Fi&e
Ans"er8.33STrU]&) In t!at Motion, HertJ stated t!at, ?in spite o$ t!e de$ective service o$ s',,ons, EitF opted
to $i&e t!e instant Ans"er "it! Co'nterc&ai, "it! Leave o$ Co'rt._`d3(STrU]&) In t!e sa,e Motion, it
&i:e"ise pra#ed t!at, in t!e interest o$ s'.stantia& 5'stice, t!e Ans"er "it! Co'nterc&ai, attac!ed to t!e
Motion $or Leave to Fi&e Ans"er s!o'&d .e ad,itted re%ard&ess o$ its .e&ated $i&in%, since t!e service o$
s',,ons "as de$ective.34STrU]&)
On 33 Ma# 322;, t!e MeTC rendered a @ecision,30STrU]&) r'&in% t!at petitioner Opti,a !ad esta.&is!ed its
ri%!t to evict HertJ $ro, t!e s'.5ect pre,ises d'e to nonpa#,ent o$ renta&s and t!e e9piration o$ t!e
period o$ &ease.3;STrU]&) T!e dispositive portion o$ t!e @ecision readsc!anro.&esvirt'a&a"&i.rar#
=HEREFORE, pre,ises considered, t!e Co'rt !ere.# renders 5'd%,ent $or t!e p&ainti$$ and a%ainst t!e
de$endant, orderin%
t!e de$endant corporation and a&& persons c&ai,in% ri%!ts $ro, it to i,,ediate&# vacate t!e &eased
pre,ises and to s'rrender possession t!ereo$ to t!e p&ainti$$D
t!e de$endant corporation to pa# t!e p&ainti$$ t!e a,o'nt o$ Fo'r H'ndred T"ent# T!o'sand Nine
H'ndred Si9t# Seven Pesos and 3+O)22 7P432,*;-.3+8 representin% its renta&s arreara%es and 'ti&it#
c!ar%es $or t!e period o$ A'%'st 3220 to Fe.r'ar# 322;, ded'ctin% t!ere$ro, de$endantQs sec'rit# depositD
t!e de$endant corporation to pa# t!e a,o'nt o$ Fi$t# Fo'r T!o'sand T"o H'ndred Pesos 7P04,322.228 as
a reasona.&e ,ont!&# co,pensation $or t!e 'se and occ'panc# o$ t!e pre,ises startin% $ro, Marc! 322;
'nti& possession t!ereo$ is restored to t!e p&ainti$$D and
t!e de$endant corporation to pa# t!e a,o'nt o$ T!irt# T!o'sand Pesos 7P(2,222.228 as and $or attorne#Qs
$eesD and
t!e cost o$ s'it.cra&a"&i.rar#
SO OR@ERE@.3-STrU]&)
HertJ appea&ed t!e MeTCQs @ecision to t!e RTC.3+STrU]&)
Findin% no co,pe&&in% reason to "arrant t!e reversa& o$ t!e MeTCQs @ecision, t!e RTC a$$ir,ed it .#
dis,issin% t!e appea& in a @ecision3*STrU]&) dated ); Marc! 322-.cra&a"&i.rar#
On )+ C'ne 322-, t!e RTC denied respondentQs Motion $or Reconsideration o$ its assai&ed
@ecision.(2STrU]&)
HertJ t!erea$ter $i&ed a veri$ied R'&e 43 Petition $or Revie" on Certiorari "it! t!e CA.()STrU]&)
On appea&, t!e CA r'&ed t!at, d'e to t!e i,proper service o$ s',,ons, t!e MeTC $ai&ed to ac<'ire
5'risdiction over t!e person o$ respondent HertJ. T!e appe&&ate co'rt t!erea$ter reversed t!e RTC and
re,anded t!e case to t!e MeTC to ens're t!e proper service o$ s',,ons. Accordin%&#, t!e CA iss'ed its
)- Marc! 322+ @ecision, t!e $a&&o o$ "!ic! readsc!anro.&esvirt'a&a"&i.rar#
=HEREFORE, pre,ises considered, t!e Ma# 33, 322; @ecision o$ t!e Metropo&itan Tria& Co'rt o$ Ma:ati
Cit#, 6ranc! ;4, in Civi& Case No. *2+43, and .ot! t!e Marc! );, 322- @ecision, as "e&& as t!e C'ne )+,
322- Reso&'tion, o$ t!e Re%iona& Tria& Co'rt o$ Ma:ati Cit#, 6ranc! )(-, in Civi& Case No. 2;1;-3, are
!ere.# REIERSE@, ANNULLE@ and SET ASI@E 1 d'e to &ac: o$ 5'risdiction over t!e person o$ t!e
de$endant corporation HERTc. T!is case is !ere.# REMAN@E@ to t!e Metropo&itan Tria& Co'rt o$ Ma:ati
Cit#, 6ranc! ;4, in Civi& Case No. *2+43, "!ic! is @IRECTE@ to ens're t!at its S!eri$$ proper&# serve
s',,ons to on&# t!ose persons &isted in Sec. )), R'&e )4 o$ t!e R'&es o$ Civi& Proced're in order t!at t!e
MTC co'&d ac<'ire 5'risdiction over t!e person o$ t!e de$endant corporation HERTc.cra&a"&i.rar#
SO OR@ERE@.(3STrU]&)
PetitionerQs Motion $or Reconsideration o$ t!e CAQs @ecision "as denied in a Reso&'tion dated 32 Ma#
322+.((STrU]&)
A%%rieved .# t!e r'&in% o$ t!e appe&&ate co'rt, petitioner t!en $i&ed t!e instant R'&e 40 Petition $or Revie"
on Certiorari "it! t!is Co'rt.(4STrU]&)
THE ISSUES
As c'&&ed $ro, t!e records, t!e $o&&o"in% iss'es are s'.,itted $or reso&'tion .# t!is Co'rt
=!et!er t!e MeTC proper&# ac<'ired 5'risdiction over t!e person o$ respondent HertJD
=!et!er t!e 'n&a"$'& detainer case is .arred .# &itis pendentiaD and
=!et!er t!e e5ect,ent o$ HertJ and t!e a"ard o$ da,a%es, attorne#s $ees and costs are proper.
THE COURTQS RULING
=e %rant t!e Petition and reverse t!e assai&ed @ecision and Reso&'tion o$ t!e appe&&ate
co'rt.cra&a"&i.rar#
I
T!e MeTC ac<'ired 5'risdiction over t!e person o$
respondent HertJ.
In civi& cases, 5'risdiction over t!e person o$ t!e de$endant ,a# .e ac<'ired eit!er .# service o$ s',,ons
or .# t!e de$endantQs vo&'ntar# appearance in co'rt and s'.,ission to its a't!orit#.(0STrU]&)
In t!is case, t!e MeTC ac<'ired 5'risdiction over t!e person o$ respondent HertJ .# reason o$ t!e &atterQs
vo&'ntar# appearance in co'rt.cra&a"&i.rar#
In P!i&ippine Co,,ercia& Internationa& 6an: v. Spo'ses @#,(;STrU]&) "e !ad occasion to
statec!anro.&esvirt'a&a"&i.rar#
Pre&i,inari&#, 5'risdiction over t!e de$endant in a civi& case is ac<'ired eit!er .# t!e coercive po"er o$ &e%a&
processes e9erted over !is person, or !is vo&'ntar# appearance in co'rt. As a %enera& proposition, one
"!o see:s an a$$ir,ative re&ie$ is dee,ed to !ave s'.,itted to t!e 5'risdiction o$ t!e co'rt. It is .# reason
o$ t!is r'&e t!at "e !ave !ad occasion to dec&are t!at t!e $i&in% o$ ,otions to ad,it ans"er, $or additiona&
ti,e to $i&e ans"er, $or reconsideration o$ a de$a'&t 5'd%,ent, and to &i$t order o$ de$a'&t "it! ,otion $or
reconsideration, is considered vo&'ntar# s'.,ission to t!e co'rtQs 5'risdiction. T!is, !o"ever, is te,pered
.# t!e concept o$ conditiona& appearance, s'c! t!at a part# "!o ,a:es a specia& appearance to
c!a&&en%e, a,on% ot!ers, t!e co'rtQs 5'risdiction over !is person cannot .e considered to !ave s'.,itted
to its a't!orit#.cra&a"&i.rar#
Prescindin% $ro, t!e $ore%oin%, it is t!'s c&ear t!at
7)8
Specia& appearance operates as an e9ception to t!e %enera& r'&e on vo&'ntar# appearanceD
738
Accordin%&#, o.5ections to t!e 5'risdiction o$ t!e co'rt over t!e person o$ t!e de$endant ,'st .e e9p&icit&#
,ade, i.e., set $ort! in an 'ne<'ivoca& ,annerD and
7(8
Fai&'re to do so constit'tes vo&'ntar# s'.,ission to t!e 5'risdiction o$ t!e co'rt, especia&&# in instances
"!ere a p&eadin% or ,otion see:in% a$$ir,ative re&ie$ is $i&ed and s'.,itted to t!e co'rt $or reso&'tion.
7E,p!ases s'pp&ied8
In t!is case, t!e records s!o" t!at t!e $o&&o"in% state,ent appeared in respondentQs Motion $or Leave to
Fi&e Ans"erc!anro.&esvirt'a&a"&i.rar#
EIFn spite o$ t!e de$ective service o$ s',,ons, t!e de$endant opted to $i&e t!e instant Ans"er "it!
Co'nterc&ai, "it! Leave o$ Co'rt, 'pon in<'irin% $ro, t!e o$$ice o$ t!e c&er: o$ co'rt o$ t!is Honora.&e
Co'rt and d'e to its notice o$ !earin% on Marc! 3*, 3220 app&ication $or TROOPre&i,inar# Mandator#
In5'nction "as received on Marc! 3;, 322;. 7E,p!asis s'pp&ied8STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb
&U^.rUWrXY (-STrU]&)
F'rt!er,ore, t!e Ans"er "it! Co'nterc&ai, $i&ed .# HertJ never raised t!e de$ense o$ i,proper service o$
s',,ons. T!e de$enses t!at it p&eaded "ere &i,ited to &itis pendentia, pari de&icto, per$or,ance o$ its
o.&i%ations and &ac: o$ ca'se o$ action.(+STrU]&) Fina&&#, it even asserted its o"n co'nterc&ai, a%ainst
Opti,a.(*STrU]&)
Meas'red a%ainst t!e standards in P!i&ippine Co,,ercia& Internationa& 6an:, t!ese actions &ead to no
ot!er conc&'sion t!an t!at HertJ vo&'ntari&# appeared .e$ore t!e co'rt a <'o.cra&a"&i.rar#
=e t!ere$ore r'&e t!at, .# virt'e o$ t!e vo&'ntar# appearance o$ respondent HertJ .e$ore t!e MeTC, t!e
tria& co'rt ac<'ired 5'risdiction over respondentQs.cra&a"&i.rar#
II
T!e instant e5ect,ent case is not .arred .# &itis pendentia.
HertJ contends t!at t!e instant case is .arred .# &itis pendentia .eca'se o$ t!e pendenc# o$ its Co,p&aint
$or Speci$ic Per$or,ance a%ainst Opti,a .e$ore t!e RTC.cra&a"&i.rar#
=e disa%ree.cra&a"&i.rar#
Litis pendentia re<'ires t!e conc'rrence o$ t!e $o&&o"in% e&e,ents
7)8
Identit# o$ parties, or at &east t!eir representation o$ t!e sa,e interests in .ot! actionsD
738
Identit# o$ ri%!ts asserted and re&ie$s pra#ed $or, t!e re&ie$ .ein% $o'nded on t!e sa,e $actsD and
7(8
Identit# "it! respect to t!e t"o precedin% partic'&ars in t!e t"o cases, s'c! t!at an# 5'd%,ent t!at ,a# .e
rendered in t!e pendin% case, re%ard&ess o$ "!ic! part# is s'ccess$'&, "o'&d a,o'nt to res 5'dicata in t!e
ot!er case.42STrU]&)
Here, "!i&e t!ere is identit# o$ parties in .ot! cases, "e $ind t!at t!e ri%!ts asserted and t!e re&ie$s pra#ed
$or 'nder t!e Co,p&aint $or Speci$ic Per$or,ance and t!ose 'nder t!e present Un&a"$'& @etainer
Co,p&aint are di$$erent. As apt&# $o'nd .# t!e tria& co'rtc!anro.&esvirt'a&a"&i.rar#
ETF!e Co,p&aint $or Speci$ic Per$or,anceF see:s to co,pe& p&ainti$$1appe&&ee Opti,a to 7)8 rene%otiate t!e
contract o$ &easeD 738 reconnect t!e 'ti&ities at t!e &eased pre,isesD and 7(8 pa# da,a%es. On t!e ot!er
!and, t!e 'n&a"$'& detainer case so'%!t t!e e5ect,ent o$ de$endant1appe&&ant HertJ $ro, t!e &eased
pre,ises and to co&&ect arrears in renta&s and 'ti&it# .i&&s.4)STrU]&)
As t!e ri%!ts asserted and t!e re&ie$s so'%!t in t!e t"o cases are di$$erent, "e $ind t!at t!e pendenc# o$
t!e Co,p&aint $or Speci$ic Per$or,ance is not a .ar to t!e instit'tion o$ t!e present case $or
e5ect,ent.cra&a"&i.rar#
III
T!e eviction o$ respondent and t!e a"ard o$ da,a%es,
attorne#Qs $ees and costs "ere proper.
=e $ind t!at t!e RTCQs r'&in% 'p!o&din% t!e e5ect,ent o$ HertJ $ro, t!e .'i&din% pre,ises "as proper.
First, respondent $ai&ed to pa# renta& arreara%es and 'ti&it# .i&&s to Opti,aD and, second, t!e Contract o$
Lease e9pired "it!o't an# re<'est $ro, HertJ $or a rene%otiation t!ereo$ at &east *2 da#s prior to its
e9piration.cra&a"&i.rar#
On t!e $irst %ro'nd, t!e records s!o" t!at HertJ $ai&ed to pa# renta& arreara%es and 'ti&it# .i&&s to Opti,a.
Fai&'re to pa# ti,e&# renta&s and 'ti&it# c!ar%es is an event o$ de$a'&t 'nder t!e Contract o$ Lease,43STrU]&)
entit&in% t!e &essor to ter,inate t!e &ease.cra&a"&i.rar#
Moreover, t!e $ai&'re o$ HertJ to pa# ti,e&# renta&s and 'ti&it# c!ar%es entit&es t!e &essor to 5'dicia&&# e5ect it
'nder t!e provisions o$ t!e Civi& Code.4(STrU]&)
On t!e second %ro'nd, t!e records &i:e"ise s!o" t!at t!e &ease !ad a&read# e9pired on 3+ Fe.r'ar# 322;
.eca'se o$ HertJQs $ai&'re to re<'est a rene%otiation at &east *2 da#s prior to t!e ter,ination o$ t!e &ease
period.cra&a"&i.rar#
T!e pertinent provision o$ t!e Contract o$ Lease readsc!anro.&esvirt'a&a"&i.rar#
9 9 9. T!e &ease can .e rene"ed on&# .# a ne" ne%otiation .et"een t!e parties 'pon "ritten notice .# t!e
LESSEE to .e %iven to t!e LESSOR at &east *2 da#s prior to ter,ination o$ t!e a.ove &ease
period.44STrU]&)
As t!e &ease "as set to e9pire on 3+ Fe.r'ar# 322;, HertJ !ad 'nti& (2 Nove,.er 3220 "it!in "!ic! to
e9press its interest in ne%otiatin% an e9tension o$ t!e &ease "it! Opti,a. Ho"ever, HertJ $ai&ed to
co,,'nicate its intention to ne%otiate $or an e9tension o$ t!e &ease "it!in t!e ti,e a%reed 'pon .# t!e
parties. T!'s, .# its o"n provisions, t!e Contract o$ Lease e9pired on 3+ Fe.r'ar# 322;.cra&a"&i.rar#
Under t!e Civi& Code, t!e e9pir# o$ t!e period a%reed 'pon .# t!e parties is &i:e"ise a %ro'nd $or 5'dicia&
e5ect,ent.40STrU]&)
As to t!e a"ard o$ ,ont!&# co,pensation, "e $ind t!at HertJ s!o'&d pa# ade<'ate co,pensation to
Opti,a, since t!e $or,er contin'ed to occ'p# t!e &eased pre,ises even a$ter t!e e9piration o$ t!e &ease
contract. As t!e &ease price d'rin% t!e e$$ectivit# o$ t!e &ease contract "as R04,322 per ,ont!, "e $ind it to
.e a reasona.&e a"ard.cra&a"&i.rar#
Fina&&#, "e 'p!o&d t!e a"ard o$ attorne#Qs $ees in t!e a,o'nt o$ R(2,222 and 5'dicia& costs in t!e &i%!t o$
HertJQs 'n5'sti$ia.&e and 'n&a"$'& retention o$ t!e &eased pre,ises, t!'s $orcin% Opti,a to $i&e t!e instant
case in order to protect its ri%!ts and interest.cra&a"&i.rar#
Fro, t!e $ore%oin%, "e $ind t!at t!e MeTC co,,itted no reversi.&e error in its 33 Ma# 322; @ecision, and
t!at t!e RTC co,,itted no reversi.&e error eit!er in a$$ir,in% t!e MeTCQs @ecision.cra&a"&i.rar#
=HEREFORE, in vie" o$ t!e $ore%oin%, t!e instant R'&e 40 Petition $or Revie" is GRANTE@. T!e
assai&ed @ecision and Reso&'tion o$ t!e Co'rt o$ Appea&s in CA1G.R. SP No. **+*2 are !ere.#
REIERSE@ and SET ASI@E. T!e @ecision o$ t!e Re%iona& Tria& Co'rt, 6ranc! )(-, Ma:ati Cit# in Civi&
Case No. 2;1;-3 a$$ir,in% in toto t!e @ecision o$ t!e Metropo&itan Tria& Co'rt, 6ranc! ;4, Ma:ati Cit# in
Civi& Case No. *2+43 is !ere.# REINSTATE@ and AFFIRME@.c!anro.&esvirt'a&&a"&i.rar#
EMILIE ELMIRA RENEE 6OU@AR@, RABMON@ ANTONIN 6OU@AR@, GINETTE ROSE A@ELAI@E
6OU@AR@ and MONIAUE IICTOIRE 6OU@AR@, P&ainti$$s1Appe&&ants, v. STE=ART E@@IE TAIT,
@e$endant1Appe&&ee.
T!e appe&&ant E,i&ie E&,ira Renee 6o'dard, in !er capacit# as "ido" o$ Marie T!eodore Cero,e 6o'dard
and as %'ardian o$ !er coappe&&ants, !er c!i&dren .orn d'rin% !er ,arria%e "it! t!e deceased, o.tained a
5'd%,ent in t!eir $avor $ro, t!e civi& division o$ t!e Co'rt o$ First Instance o$ Hanoi, Frenc! Indo1C!ina, on
C'ne 3-, )*(4, $or t!e s', o$ 42,222 piastras, e<'iva&ent, accordin% to t!e rate o$ e9c!an%e at t!e ti,e o$
t!e rendition o$ t!e 5'd%,ent, to P0;,*20.--, P!i&ippine c'rrenc#, p&'s interest t!e a,o'nt or rate o$ "!ic!
is not %iven. T!e 5'd%,ent "as rendered a%ainst Ste"art Eddie Tait "!o !ad .een dec&ared in de$a'&t $or
!is $ai&'re to appear at t!e tria& .e$ore said co'rt.
Appe&&ants/ action, .# virt'e o$ "!ic! t!e# o.tained t!e $ore%oin% 5'd%,ent, "as .ased on t!e $act t!at
Marie T!eodore Cero,e 6o'dard, "!o "as an e,p&o#ee o$ Ste"art Eddie Tait, "as :i&&ed in Hanoi .#
ot!er e,p&o#ees o$ said Tait, a&t!o'%! ?o'tside o$ t!e $'&$i&&,ent o$ a d't#?, accordin% to t!e En%&is!
trans&ation o$ a certi$ied cop# o$ t!e decision in Frenc!, presented .# t!e appe&&ants. T!e dis,issa& o$
appe&&ants/ co,p&aint .# t!e &o"er co'rt "as .ased principa&&# on t!e &ac: o$ 5'risdiction o$ t!e Co'rt o$
Hanoi to render t!e 5'd%,ent in <'estion, $or t!e e9ec'tion o$ "!ic! t!is action "as instit'ted in t!is
5'risdiction. T!e &ac: o$ 5'risdiction "as discovered in t!e decision itse&$ o$ t!e Co'rt o$ Hanoi "!ic! states
t!at t!e appe&&ee "as not a resident o$, nor !ad a :no"n do,ici&e in, t!at co'ntr#.
T!e evidence add'ced at t!e tria& conc&'sive&# proves t!at neit!er t!e appe&&ee nor !is a%ent or
e,p&o#ees "ere ever in Hanoi, Frenc! Indo1C!inaD and t!at t!e deceased Marie T!eodore Cero,e
6o'dard !ad never, at an# ti,e, .een !is e,p&o#ee. T!e appe&&ee/s $irst inti,ation o$ !is !avin% .een
s'ed and sentenced to pa# a !'%e s', .# t!e civi& division o$ t!e Co'rt o$ First Instance o$ Hanoi "as
"!en !e "as served "it! s',,ons in t!e present case.
Passin% no" to t!e consideration on t!e errors assi%ned .# t!e appe&&ants, "e ,'st sa# t!at it "as rea&&#
'nnecessar# $or t!e &o"er co'rt to ad,it E9!i.its @, E, F and H to M1), nor can t!ese e9!i.its .e ad,itted
as evidence, $or, as to t!e $irst point, t!e appe&&ants $ai&ed to s!o" t!at t!e proceedin%s a%ainst t!e
appe&&ee in t!e Co'rt o$ Hanoi "ere in accordance "it! t!e &a"s o$ France t!en in $orceD1and as to t!e
second point, it appears t!at said doc',ents are not o$ t!e nat're ,entioned in sections (24 and (20 o$
Act No. )*2. T!e# are not copies o$ t!e 5'dicia& record o$ t!e proceedin%s a%ainst t!e appe&&ee in t!e Co'rt
o$ Hanoi, d'&# certi$ied .# t!e Proper a't!orities t!ere, "!ose si%nat'res s!o'&d .e a't!enticated .# t!e
Cons'& or so,e cons'&ar a%ent o$ t!e United States in said co'ntr#. T!e appe&&ants ar%'e t!at t!e papers
are t!e ori%ina& doc',ents and t!at t!e Honora.&e Frenc! Cons'& in t!e P!i&ippines !as con$ir,ed t!is
$act. S'c! ar%',ent is not s'$$icient to a't!oriJe a deviation $ro, a r'&e esta.&is!ed and sanctioned .#
&a". To co,p&# "it! t!e r'&e, t!e .est evidence o$ $orei%n 5'dicia& proceedin%s is a certi$ied cop# o$ t!e
sa,e "it! a&& t!e $or,a&ities re<'ired in said sections (24 and (20 $or on&# t!'s can one .e a.so&'te&#
s're o$ t!e a't!enticit# o$ t!e record. On t!e ot!er !and, said e9!i.its or doc',ents, i$ ad,itted, "o'&d
on&# corro.orate and stren%t!en t!e evidence o$ t!e appe&&ee "!ic! in itse&$ is convincin%, and t!e
conc&'sion o$ t!e &o"er co'rt t!at t!e appe&&ee is not &ia.&e $or t!e a,o'nt to "!ic! !e "as sentenced, as
a&&e%ed $or !e "as not d'Fv tried or even s',,oned in con$or,it# "it! t!e &a". It is said t!at t!e Frenc!
&a" re%ardin% s',,ons, accordin% to its En%&is! trans&ation presented .# t!e appe&&ants, is o$ t!e
$o&&o"in% tenor5%cc!anro.&es.co,.p!
?SEC. ;* 7par. +8. T!ose "!o !ave no :no"n residence in France, in t!e p&ace o$ t!eir present residence
i$ t!e p&ace is 'n:no"n, t!e "rit s!a&& .e posted at t!e ,ain door o$ t!e !a&& o$ t!e co'rt "!ere t!e
co,p&aint !as .een $i&edD a second cop# s!a&& .e %iven to t!e Attorne#1Genera& o$ t!e Rep'.&ic "!o s!a&&
visae t!e ori%ina&.? 6't t!en, E9!i.its E, E1), F and F1) s!o" t!at t!e s',,ons a&&e%ed to !ave .een
addressed to t!e appe&&ee, "as de&ivered in Mani&a on Septe,.er )+, )*((, to C. M. S!ot"e&&, a
representative or a%ent o$ C!'rc!i&& M Tait Inc., "!ic! is an entit# entire&# di$$erent $ro, t!e appe&&ee.
Moreover, t!e evidence o$ record s!o"s t!at t!e appe&&ee "as not in Hanoi d'rin% t!e ti,e ,entioned in
t!e co,p&aint o$ t!e appe&&ants, nor "ere !is e,p&o#ees or representatives. T!e r'&e in ,atters o$ t!is
nat're is t!at 5'dicia& proceedin%s in a $orei%n co'ntr#, re%ardin% pa#,ent o$ ,one#, are on&# e$$ective
a%ainst a part# i$ s',,ons is d'&# served on !i, "it!in s'c! $orei%n co'ntr# .e$ore t!e proceedin%s.
?T!e $'nda,enta& r'&e is t!at 5'risdiction in persona, over nonresidents, so as to s'stain a ,one#
5'd%,ent, ,'st .e .ased 'pon persona& service "it!in t!e state "!ic! renders t!e 5'd%,ent. 7Penno#er
v. Ne$$, *0 U. S., -)4D 34 La". ed., 0;0D T"inin% v. Ne" Cerse#, 3)) U. S., -+D 3* S. Ct., )4D 0( La". ed.,
*-D Continenta& Nationa& 6an: o$ 6oston v. T!'r.er, )4( N. B., ;4+D (- N. E., +3+.8
?T!e process o$ a co'rt o$ one state cannot r'n into anot!er and s',,on a part# t!ere do,ici&ed to
respond to proceedin%s a%ainst !i,. 7Hess v. Pa"&os:i, 3-4 U. S., (03, (00D 4- S. Ct., ;(3, ;(( E-) La".
ed., )2*F.8 Notice sent o'tside t!e state to a nonresident is 'navai&in% to %ive 5'risdiction in an action
a%ainst !i, persona&&# $or ,one# recover#. 7Penno#er v. Ne$$, *0 U. S., -)4 E34 La". ed., 0;0F.8 T!ere
,'st .e act'a& service "it!in t!e State o$ notice 'pon !i, or 'pon so,e one a't!oriJed to accept service
$or !i,. 7Go&de# v. Mornin% Ne"s, )0; U. S., 0)+ E)0 S. Ct., 00*D (* La". ed., 0)-F.8 A persona& 5'd%,ent
rendered a%ainst a nonresident, "!o !as neit!er .een served "it! process nor appeared in t!e s'it, is
"it!o't va&idit#. 7Mc@ona&d v. Ma.ee, 34( U. S., *2 E(- S. Ct. . (4(D ;) La". ed., ;2+D L. R. A. )*)-F,
40+F.8 T!e ,ere transaction o$ .'siness in a state .# nonresident nat'ra& persons does not i,p&# consent
to .e .o'nd .# t!e process o$ its co'rts. 7F&e9ner v. Farson, 3/)+ U. S., 3+* E(* S. Ct., *-D ;( La". ed.,
302F .8? 7Cited in S:andinavis:a Granit A:tie.o&a%et v. =eiss, 3(4 N. B. S., 323, 32;, 32-.8
?T!e process o$ a co'rt !as no e9traterritoria& e$$ect, and no 5'risdiction is ac<'ired over t!e person o$ t!e
de$endant .# servin% !i, .e#ond t!e .o'ndaries o$ t!e state. Nor !as a 5'd%,ent o$ a co'rt o$ a $orei%n
co'ntr# a%ainst a resident o$ t!is co'ntr# !avin% no propert# in s'c! $orei%n co'ntr# .ased on process
served !ere, an# e$$ect !ere a%ainst eit!er t!e de$endant persona&&# or !is propert# sit'ated !ere.? 70 R.
C. L., *)3.8
?Process iss'in% $ro, t!e co'rts o$ one state or co'ntr# cannot r'n into anot!er, and a&t!o'%! a
nonresident de$endant ,a# !ave .een persona&&# served "it! s'c! process in t!e state or co'ntr# o$ !is
do,ici&e, it "i&& not %ive s'c! 5'risdiction as to a't!oriJe a persona& 5'd%,ent a%ainst !i,.? 73( C#c., ;++.8
It can not .e said t!at t!e decision rendered .# t!e Co'rt o$ Hanoi s!o'&d .e conc&'sive to s'c! an e9tent
t!at it cannot .e contested, $or it ,ere&# constit'tes, $ro, t!e vie"point o$ o'r &a"s, pri,a $acie evidence
o$ t!e 5'stness o$ appe&&ants/ c&ai,, and, as s'c!, nat'ra&&# ad,its proo$ to t!e contrar#. T!is is precise&#
t!e provision o$ section ()) o$ Act No. )*2, as interpreted in t!e case o$ In%eno!& v. =a&ter E. O&sen M Co.
74- P!i&., )+*85%cc!anro.&es.co,.p!
?T!e e$$ect o$ a 5'd%,ent o$ an# ot!er tri.'na& o$ a $orei%n co'ntr#, !avin% 5'risdiction to prono'nce t!e
5'd%,ent, is as $o&&o"s5%cc!anro.&es.co,.p!
?). In case o$ a 5'd%,ent a%ainst a speci$ic t!in%, t!e 5'd%,ent is conc&'sive 'pon t!e tit&e to t!e t!in%D
?3. In case o$ a 5'd%,ent a%ainst a person, t!e 5'd%,ent is pres',ptive evidence o$ a ri%!t as .et"een
t!e parties and t!eir s'ccessors in interest .# a s'.se<'ent tit&eD .'t t!e 5'd%,ent ,a# .e repe&&ed .#
evidence o$ a "ant o$ 5'risdiction, "ant o$ notice to t!e part#, co&&'sion, $ra'd, or c&ear ,ista:e o$ &a" or
$act.? 7Sec. ()) o$ Act No. )*2.8
In vie" o$ t!e $ore%oin% considerations, o'r conc&'sion is t!at "e $ind no ,erit in t!e errors assi%ned to
t!e &o"er co'rt and t!e appea&ed 5'd%,ent is in accordance "it! t!e &a". =!ere$ore, t!e 5'd%,ent is
a$$ir,ed, "it! costs a%ainst t!e appe&&ants. So ordered.
G.R. No. )3-;*3 Marc! )2, 3224
FORTUNATO GOMEc and AURORA GOMEc, petitioners,
vs.
COURT OF APPEALS, A@OLFO TROCINO and MARIANO TROCINO, respondents.
So,e ti,e in )*-0, t!e spo'ses Ces's and Caridad Trocino ,ort%a%ed t"o parce&s o$ &and covered .#
TCT Nos. )2;); and ()+0; to @r. C&arence B'5'ico. T!e ,ort%a%e "as s'.se<'ent&# $orec&osed and t!e
properties so&d at p'.&ic a'ction on C'&# )), )*++, and .e$ore t!e e9pir# o$ t!e rede,ption period, t!e
spo'ses Trocino so&d t!e propert# to petitioners on @ece,.er )3, )*+*, "!o in t'rn, redee,ed t!e sa,e
$ro, @r. B'5'ico. T!e spo'ses Trocino, !o"ever, re$'sed to conve# o"ners!ip o$ t!e properties to
petitioners, !ence, t!e co,p&aint.
On Can'ar# )2, )**3, t!e tria& co'rt/s Process Server served s',,ons on respondents, in t!e ,anner
descri.ed in !is ?Ret'rn o$ Service,? to "it
Respect$'&&# ret'rned to t!e 6ranc! C&er: o$ Co'rt, Re%iona& Tria& Co'rt o$ Ce.', 6ranc! )2, t!e !erein
attac!ed ori%ina& s',,ons iss'ed in t!e a.ove1entit&ed case "it! t!e in$or,ation t!at on Can'ar# +, )**3
s',,ons and copies o$ t!e co,p&aint "ere served to t!e de$endants Caco., Ces's Cr., Ado&$o, Mariano,
Conso&acion, A&ice, Rac!ea& t!r' de$endant Caridad Trocino at t!eir %iven address at Maria Cristina
E9tension 7.esides Sacred Heart Sc!oo& $or Gir&s8, Ce.' Cit#, evidence .# !er si%nat're $o'nd at t!e
&o"er portion o$ t!e ori%ina& s',,ons.(
=HEREFORE I, respect$'&&# ret'rn t!e ori%ina& s',,ons d'&# served to t!e co'rt o$ ori%in.
Ce.' Cit#, P!i&ippines, Can'ar# )2, )**3.
7si%ned8
@ELFIN @. 6ARNI@O
RTC Process Server
On Can'ar# 3-, )**3, t!e de$endants, t!ro'%! t!eir co'nse& Att#. E9pedito P. 6'%arin, $i&ed t!eir Ans"er.
@e$endant Caridad A. Trocino, respondents/ ,ot!er, veri$ied said p&eadin%.4
A$ter tria& on t!e ,erits, t!e RTC rendered its decision on Marc! )**(, "it! t!e $o&&o"in% disposition
=HEREFORE, pre,ises considered, 5'd%,ent is !ere.# rendered in $avor o$ t!e p&ainti$$s and a%ainst t!e
de$endants.
T!e &atter are !ere.# ordered to 5oint&# and severa&&# e9ec'te a @eed o$ Sa&e in $avor o$ t!e p&ainti$$s and
to de&iver t!e o"ner/s d'p&icate copies o$ TCT Nos. )2;); and ()+0;, coverin% t!e properties so&d, to t!e
p&ainti$$s "it!in ten 7)28 da#s $ro, t!e $ina&it# o$ t!e 5'd%,ent, a$ter "!ic! p&ainti$$s s!a&& pa# in t'rn to t!e
de$endants t!e .a&ance o$ P3,222,222.22. Ot!er"ise, t!e sa&e is rescinded and revo:ed and t!e
de$endants are directed to ret'rn to t!e p&ainti$$s t!e a,o'nt o$ P022,222.22, "it! interest o$ )3P per
ann', co,p'ted $ro, @ece,.er ;, )*+*, 'nti& t!e $'&& a,o'nt is paid.
In addition t!ereto, de$endants are to pa# 5oint&# and severa&&# to t!e p&ainti$$s, t!e a,o'nt o$ P02,222.22
as ,ora& da,a%esD P32,222.22 as e9e,p&ar# da,a%esD P42,222.22 .# "a# o$ attorne#/s $eesD and
P)2,222.22 as &iti%ation e9penses.
SO OR@ERE@.0
@'e to t!e de$endants/ $ai&'re to de&iver t!e o"ner/s d'p&icate o$ TCT Nos. )2;); and ()+0;, t!e RTC
iss'ed an order on A'%'st 3*, )**0 dec&arin% said tit&es n'&& and void, and orderin% t!e Re%ister o$ @eeds
o$ Ce.' Cit# to iss'e ne" tit&es in t!e na,e o$ !erein petitioners.;
T!erea$ter, or on Marc! )(, )**;, respondents Ado&$o and Mariano Trocino $i&ed "it! t!e Co'rt o$
Appea&s, a petition $or t!e ann'&,ent o$ t!e 5'd%,ent rendered .# t!e RTC1Ce.' 76ranc! )28 in Civi&
Case No. CE61)))2(. Private respondents a&&e%ed t!at t!e tria& co'rt/s decision is n'&& and void on t!e
%ro'nd t!at it did not ac<'ire 5'risdiction over t!eir persons as t!e# "ere not va&id&# served "it! a cop# o$
t!e s',,ons and t!e co,p&aint. Accordin% to t!e,, at t!e ti,e s',,ons "as served on t!e,, Ado&$o
Trocino "as a&read# in O!io, U.S.A., and !as .een residin% t!ere $or 30 #ears, "!i&e Mariano Trocino "as
in Ta&i.on, 6o!o&, and !as .een residin% t!ere since )*+;. T!e# a&so re$'ted t!e receipt o$ t!e s',,ons
.# Caridad A. Trocino, and t!e representation ,ade .# Att#. 6'%arin in t!eir .e!a&$. Respondents a&so
contended t!at t!e# !ave a ,eritorio's de$ense.- Petitioners $i&ed t!eir Co,,entOAns"er to t!e petition.+
On Septe,.er (2, )**;, t!e Co'rt o$ Appea&s iss'ed t!e assai&ed @ecision %rantin% t!e petition and
ann'&&in% t!e decision o$ t!e RTC1Ce.' 76ranc! )28. T!e decreta& portion o$ t!e decision reads
=HEREFORE, t!e decision o$ t!e Re%iona& Tria& Co'rt o$ Ce.' Cit#, 6ranc! )2, in Civi& Case No. CE61
)))2( as "e&& as a&& Orders iss'ed to i,p&e,ent t!e sa,e are !ere.# ANNULLE@ AN@ SET ASI@E. T!e
Re%ister o$ @eeds o$ Ce.' Cit# is !ere.# ENCOINE@ $ro, cance&&in% Trans$er Certi$icates o$ Tit&e Nos.
)2;); and ()+0;. No prono'nce,ent as to costs.
SO OR@ERE@.*
T!eir ,otion $or reconsideration !avin% .een denied .# t!e Co'rt o$ Appea&s, petitioners $i&ed t!e present
petition, settin% $ort! t!e $o&&o"in% assi%n,ent o$ errors
I. THE COURT OF APPEALS ERRE@ IN FIN@ING LACN OF PRIOR NNO=LE@GE ON THE PART OF
RESPON@ENTS TROCINO, REGAR@ING THE PROCEE@INGS 6EFORE THE RTC OF CE6U CITB
AN@ IN NOT @ISMISSING THE PETITION FOR IIOLATION OF SUPREME COURT CIRCULAR 241*4.
II. THE COURT OF APPEALS ERRE@ IN @ECLARING THE NEE@ FOR PERSONAL AN@OOR
EHTRATERRITORIAL SERIICE OF SUMMONS, @ESPITE THE NATURE OF THE CAUSE OF ACTION
6EING ONE IN REM.
III. THE COURT OF APPEALS ERRE@ IN ANNULLING THE CU@GMENT, CAUSING FURTHER
USELESS LITIGATION AN@ UNNECESSARB EHPENSE ON PETITIONERS AN@ RESPON@ENTS,
ESPECIALLB SINCE RESPON@ENTS HAIE NOT SHO=N ANB IALI@ @EFENSE AS GROUN@ FOR
REIERSAL OF CU@GMENT OF THE RTC.
II. THE COURT OF APPEALS ERRE@ IN RULING THAT ITS CU@GMENT IS APPLICA6LE IN FAIOR
OF CARI@A@ TROCINO.)2
S',,ons is a "rit .# "!ic! t!e de$endant is noti$ied o$ t!e action .ro'%!t a%ainst !i,. Service o$ s'c!
"rit is t!e ,eans .# "!ic! t!e co'rt ac<'ires 5'risdiction over !is person.)) An# 5'd%,ent "it!o't s'c!
service in t!e a.sence o$ a va&id "aiver is n'&& and void.)3
T!e reso&'tion o$ t!e present petition !in%es on t!e iss'e o$ "!et!er or not s',,ons "as e$$ective&#
served on respondents. I$ in t!e a$$ir,ative, t!e tria& co'rt !ad va&id&# ac<'ired 5'risdiction over t!eir
persons and t!ere$ore its 5'd%,ent is va&id.
To reso&ve "!et!er t!ere "as va&id service o$ s',,ons on respondents, t!e nat're o$ t!e action $i&ed
a%ainst t!e, ,'st $irst .e deter,ined. As t!e Co'rt e9p&ained in Asiavest Li,ited vs. Co'rt o$ Appea&s, it
"i&& .e !e&p$'& to deter,ine $irst "!et!er t!e action is in persona,, in re,, or <'asi in re, .eca'se t!e
r'&es on service o$ s',,ons 'nder R'&e )4 o$ t!e R'&es o$ Co'rt o$ t!e P!i&ippines app&# accordin% to t!e
nat're o$ t!e action.)(
In actions in persona,, s',,ons on t!e de$endant ,'st .e served .# !andin% a cop# t!ereo$ to t!e
de$endant in person, or, i$ !e re$'ses to receive it, .# tenderin% it to !i,. T!is is speci$ica&&# provided in
Section -, R'&e )4 o$ t!e R'&es o$ Co'rt,)4 "!ic! states
SEC. -. Persona& service o$ s',,ons.11 T!e s',,ons s!a&& .e served .# !andin% a cop# t!ereo$ to t!e
de$endant in person or, i$ !e re$'ses to receive it, .# tenderin% it to !i,.
I$ e$$orts to $ind de$endant persona&&# ,a:es pro,pt service i,possi.&e, s'.stit'ted service ,a# .e
e$$ected .# &eavin% copies o$ t!e s',,ons at t!e de$endantQs d"e&&in% !o'se or residence "it! so,e
person o$ s'ita.&e a%e and discretion t!en residin% t!erein, or .# &eavin% t!e copies at t!e de$endantQs
o$$ice or re%'&ar p&ace o$ .'siness "it! so,e co,petent person in c!ar%e t!ereo$.)0 In s'.stit'ted
service, it is ,andated t!at t!e $act o$ i,possi.i&it# o$ persona& service s!o'&d .e e9p&ained in t!e proo$ o$
service.);
=!en t!e de$endant in an action in persona, is a non1resident "!o does not vo&'ntari&# s'.,it !i,se&$ to
t!e a't!orit# o$ t!e co'rt, persona& service o$ s',,ons "it!in t!e State is essentia& to t!e ac<'isition o$
5'risdiction over !is person. T!is cannot .e done i$ t!e de$endant is not p!#sica&&# present in t!e co'ntr#,
and t!'s, t!e co'rt cannot ac<'ire 5'risdiction over !is person and t!ere$ore cannot va&id&# tr# and decide
t!e case a%ainst !i,.)- An e9ception "as accorded in Ge,per&e vs. Sc!en:er "!erein service o$
s',,ons t!ro'%! t!e non1resident/s "i$e, "!o "as a resident o$ t!e P!i&ippines, "as !e&d va&id, as t!e
&atter "as !is representative and attorne#1in1$act in a prior civi& case $i&ed .# t!e non1resident, and t!e
second case "as ,ere&# an o$$s!oot o$ t!e $irst case.)+
Mean"!i&e, in actions in re, or <'asi in re,, 5'risdiction over t!e person o$ t!e de$endant is not a
prere<'isite to con$er 5'risdiction on t!e co'rt provided t!at t!e co'rt ac<'ires 5'risdiction over t!e res,
a&t!o'%! s',,ons ,'st .e served 'pon t!e de$endant in order to satis$# t!e d'e process
re<'ire,ents.)* T!'s, "!ere t!e de$endant is a non1resident "!o is not $o'nd in t!e P!i&ippines, and 7)8
t!e action a$$ects t!e persona& stat's o$ t!e p&ainti$$D 738 t!e action re&ates to, or t!e s'.5ect ,atter o$ "!ic!
is propert# in t!e P!i&ippines in "!ic! t!e de$endant !as or c&ai,s a &ien or interestD 7(8 t!e action see:s
t!e e9c&'sion o$ t!e de$endant $ro, an# interest in t!e propert# &ocated in t!e P!i&ippinesD or 748 t!e
propert# o$ t!e de$endant !as .een attac!ed in t!e P!i&ippines, s',,ons ,a# .e served e9traterritoria&&#
.# 7a8 persona& service o't o$ t!e co'ntr#, "it! &eave o$ co'rtD 7.8 p'.&ication, a&so "it! &eave o$ co'rtD or
7c8 an# ot!er ,anner t!e co'rt ,a# dee, s'$$icient.32
In t!e present case, petitioners/ ca'se o$ action in Civi& Case No. CE61)))2( is anc!ored on t!e c&ai,
t!at t!e spo'ses Ces's and Caridad Trocino rene%ed on t!eir o.&i%ation to conve# o"ners!ip o$ t!e t"o
parce&s o$ &and s'.5ect o$ t!eir sa&e. T!'s, petitioners pra# in t!eir co,p&aint t!at t!e spo'ses Trocino .e
ordered to e9ec'te t!e appropriate deed o$ sa&e and t!at t!e tit&es .e de&ivered to t!e, 7petitioners8D or in
t!e a&ternative, t!at t!e sa&e .e revo:ed and rescindedD and spo'ses Trocino ordered to ret'rn to
petitioners t!eir do"n pa#,ent in t!e a,o'nt o$ P022,222.22 p&'s interests. T!e action instit'ted .#
petitioners a$$ect t!e parties a&one, not t!e "!o&e "or&d. Hence, it is an action in persona,, i.e., an#
5'd%,ent t!erein is .indin% on&# 'pon t!e parties proper&# i,p&eaded.3)
Contrar# to petitioners/ .e&ie$, t!e co,p&aint t!e# $i&ed $or speci$ic per$or,ance andOor rescission is not an
action in re,. =!i&e it is a rea& action .eca'se it a$$ects tit&e to or possession o$ t!e t"o parce&s o$ &and
covered .# TCT Nos. )2;); and ()+0;, it does not a'to,atica&&# $o&&o" t!at t!e action is a&read# one in
re,. In HernandeJ vs. R'ra& 6an: o$ L'cena, Inc., t!e Co'rt ,ade t!e $o&&o"in% distinction
In a persona& action, t!e p&ainti$$ see:s t!e recover# o$ persona& propert#, t!e en$orce,ent o$ a contract or
t!e recover# o$ da,a%es. In a rea& action, t!e p&ainti$$ see:s t!e recover# o$ rea& propert#, or, as indicated
in section 37a8 o$ R'&e 4, a rea& action is an action a$$ectin% tit&e to rea& propert# or $or t!e recover# o$
possession, or $or partition or conde,nation o$, or $orec&os're o$ a ,ort%a%e on, rea& propert#.
An action in persona, is an action a%ainst a person on t!e .asis o$ !is persona& &ia.i&it#, "!i&e an action in
re, is an action a%ainst t!e t!in% itse&$, instead o$ a%ainst t!e person. Hence, a rea& action ,a# at t!e
sa,e ti,e .e an action in persona, and not necessari&# an action in re,.33
T!e o.5ective so'%!t in petitioners/ co,p&aint "as to esta.&is! a c&ai, a%ainst respondents $or t!eir
a&&e%ed re$'sa& to conve# to t!e, t!e tit&e to t!e t"o parce&s o$ &and t!at t!e# in!erited $ro, t!eir $at!er,
Ces's Trocino, "!o "as one o$ t!e se&&ers o$ t!e properties to petitioners. Hence, to repeat, Civi& Case No.
CE61)))2( is an action in persona, .eca'se it is an action a%ainst persons, na,e&#, !erein respondents,
on t!e .asis o$ t!eir persona& &ia.i&it#. As s'c!, persona& service o$ s',,ons 'pon t!e de$endants is
essentia& in order $or t!e co'rt to ac<'ire o$ 5'risdiction over t!eir persons.3(
A distinction, !o"ever, ,'st .e ,ade "it! re%ard to service o$ s',,ons on respondents Ado&$o Trocino
and Mariano Trocino. Ado&$o Trocino, as records s!o", is a&read# a resident o$ O!io, U.S.A. $or 30 #ears.
6ein% a non1resident, t!e co'rt cannot ac<'ire 5'risdiction over !is person and va&id&# tr# and decide t!e
case a%ainst !i,.
On t!e ot!er !and, Mariano Trocino !as .een in Ta&i.on, 6o!o& since )*+;. To va&id&# ac<'ire 5'risdiction
over !is person, s',,ons ,'st .e served on !i, persona&&#, or t!ro'%! s'.stit'ted service, 'pon
s!o"in% o$ i,possi.i&it# o$ persona& service. S'c! i,possi.i&it#, and "!# e$$orts e9erted to"ards persona&
service $ai&ed, s!o'&d .e e9p&ained in t!e proo$ o$ service. T!e pertinent $acts and circ',stances
attendant to t!e service o$ s',,ons ,'st .e stated in t!e proo$ o$ service or O$$icer/s Ret'rn. Fai&'re to
do so "o'&d inva&idate a&& s'.se<'ent proceedin%s on 5'risdictiona& %ro'nds.34
In t!e present case, t!e process server served t!e s',,ons and copies o$ t!e co,p&aint on respondents
Caco., Ces's, Cr., Ado&$o, Mariano, Conso&acion, A&ice and Rac!ea&,30 t!ro'%! t!eir ,ot!er, Caridad
Trocino.3; T!e ret'rn did not contain an# partic'&ars as to t!e i,possi.i&it# o$ persona& service on Mariano
Trocino "it!in a reasona.&e ti,e. S'c! i,proper service renders t!e sa,e ine$$ective.
@'e process o$ &a" re<'ires persona& service to s'pport a persona& 5'd%,ent, and, "!en t!e proceedin%
is strict&# in persona, .ro'%!t to deter,ine t!e persona& ri%!ts and o.&i%ations o$ t!e parties, persona&
service "it!in t!e state or a vo&'ntar# appearance in t!e case is essentia& to t!e ac<'isition o$ 5'risdiction
so as to constit'te co,p&iance "it! t!e constit'tiona& re<'ire,ent o$ d'e process.3-
Moreover, inas,'c! as t!e s!eri$$/s ret'rn $ai&ed to state t!e $acts and circ',stances s!o"in% t!e
i,possi.i&it# o$ persona& service o$ s',,ons 'pon respondents "it!in a reasona.&e ti,e, petitioners
s!o'&d !ave so'%!t t!e iss'ance o$ an a&ias s',,ons. Under Section 0, R'&e )4 o$ t!e R'&es o$ Co'rt,
a&ias s',,ons ,a# .e iss'ed "!en t!e ori%ina& s',,ons is ret'rned "it!o't .ein% served on an# or a&&
o$ t!e de$endants.3+ Petitioners, !o"ever, did not do so, and t!e# s!o'&d no" .ear t!e conse<'ences o$
t!eir &ac: o$ di&i%ence.
T!e $act t!at Att#. E9pedito 6'%arin represented a&& t!e respondents "it!o't an# e9ception does not
trans$or, t!e ine$$ective service o$ s',,ons into a va&id one. It does not constit'te a va&id "aiver or even
a vo&'ntar# s'.,ission to t!e tria& co'rt/s 5'risdiction. T!ere "as not even t!e s&i%!test proo$ s!o"in% t!at
respondents a't!oriJed Att#. 6'%arin/s appearance $or and in t!eir .e!a&$. As $o'nd .# t!e Co'rt o$
Appea&s
=!i&e Caridad Trocino ,a# !ave en%a%ed t!e services o$ Att#. 6'%arin, it did not necessari&# ,ean t!at
Att#. 6'%arin a&so !ad t!e a't!orit# to represent t!e de$endant !eirs. T!e records s!o" t!at in a&& t!e
p&eadin%s "!ic! re<'ired veri$ication, on&# Caridad Trocino si%ned t!e sa,e. T!ere "as never a sin%&e
instance "!ere de$endant !eirs si%ned t!e p&eadin%. T!e $act t!at a p&eadin% is si%ned .# one de$endant
does not necessari&# ,ean t!at it is .indin% on a co1de$endant. F'rt!er,ore, Caridad Trocino represented
!erse&$ as t!e principa& de$endant in !er Motion to =it!dra" Appea&. 7Ro&&o, p. +28
Since t!e de$endant !eirs are co1de$endants, t!e tria& co'rt s!o'&d !ave veri$ied t!e e9tent o$ Att#.
6'%arin/s a't!orit# "!en petitioners $ai&ed to appear as ear&# as t!e pre1tria& sta%e, "!ere t!e parties are
re<'ired to appear. T!e a.sence o$ t!e de$endant !eirs s!o'&d !ave pro,pted t!e tria& co'rt to in<'ire
$ro, t!e &a"#er "!et!er !e "as a&so representin% t!e ot!er petitioners. As co1de$endant and co1!eirs
over t!e disp'ted properties, t!e de$endant !eirs !ad ever# ri%!t to .e present d'rin% t!e tria&. On&#
Caridad Trocino appeared and testi$ied on !er o"n .e!a&$. A&& t!e de$enses raised "ere !er o"n, not t!e
de$endant !eirs.3*
Conse<'ent&#, t!e 5'd%,ent so'%!t to .e e9ec'ted a%ainst respondents "ere rendered "it!o't
5'risdiction as t!ere "as neit!er a proper service o$ s',,ons nor "as t!ere an# "aiver or vo&'ntar#
s'.,ission to t!e tria& co'rt/s 5'risdiction. Hence, t!e sa,e is void, "it! re%ard to private respondents
e9cept Caridad Trocino.
It ,'st .e pointed o't t!at "!i&e it "as t!e spo'ses Ces's and Caridad Trocino "!o so&d t!e properties to
petitioners, t!eir ri%!t to proceed a%ainst Ces's Trocino "!en !e died "as passed on to !is !eirs, "!ic!
inc&'des respondents and Caridad Trocino. S'c! trans,ission o$ ri%!t occ'rred .# operation o$ &a", ,ore
partic'&ar&# .# s'ccession, "!ic! is a ,ode o$ ac<'isition .# virt'e o$ "!ic! t!e propert#, ri%!ts and
o.&i%ations to t!e e9tent o$ t!e va&'e o$ t!e in!eritance o$ a person are trans,itted.(2 =!en t!e process
server persona&&# served t!e s',,ons on Caridad Trocino, t!e tria& co'rt va&id&# ac<'ired 5'risdiction over
!er person a&one. Hence, t!e tria& co'rt/s decision is va&id and .indin% "it! re%ard to !er, .'t on&# in
proportion to Caridad Trocino/s s!are. As apt&# stated .# t!e Co'rt o$ Appea&s
T!is Co'rt/s decision is t!ere$ore app&ica.&e to a&& t!e de$endant !eirs "it! t!e e9ception o$ de$endant
Caridad Trocino considerin% t!at it "as t!e &atter "!o entered into t!e a&&e%ed sa&e "it!o't t!e consent o$
!er !'s.and. S!e is t!ere$ore estopped $ro, <'estionin% !er o"n a't!orit# to enter into t!e <'estioned
sa&e. Moreover, Caridad Trocino "as va&id&# served "it! s',,ons and "as accorded d'e process.()
=HEREFORE, t!e petition $or revie" is @ENIE@. T!e decision o$ t!e Co'rt o$ Appea&s in CA1G.R. SP No.
422;- is AFFIRME@.
THE @IAL CORPORATION, C M T REFINERB INC., NALIN Sdn. 6!.. 6ERISFOR@ COMMO@ITIES,
LT@., and PACIFIC MOLASSES COMPANB, Petitioners, v. THE HON. CLEMENTE M. SORIANO,
Presidin% C'd%e, Re%iona& Tria& Co'rt, 6ranc! (, MANILA PU6LIC RESPON@ENT and IMPERIAL
IEGETA6LE OIL COMPANB, INC., Respondents.
T!e petitioners are $orei%n corporations or%aniJed and e9istin% 'nder t!e &a"s o$ t!e United States, t!e
United Nin%do,, and Ma&a#sia, are not do,ici&ed in t!e P!i&ippines, nor do t!e# !ave o$$icers or a%ents,
p&ace o$ .'siness, or propert# in t!e P!i&ippinesD t!e# are not &icensed to en%a%e, and are not en%a%ed, in
.'siness !ere. T!e respondent I,peria& Ie%eta.&e Oi& Co,pan#, Inc. 7or ?IIO? $or .revit#8 is a P!i&ippine
corporation "!ic! t!ro'%! its president, @o,inador Monteverde, !ad entered into severa& contracts $or t!e
de&iver# o$ cocon't oi& to t!e petitioners. T!ose contracts stip'&ate t!at an# disp'te .et"een t!e parties "i&&
.e sett&ed t!ro'%! ar.itration 'nder t!e r'&es o$ eit!er t!e Federation o$ Oi&s Seeds and Fats Association
7FOSFA8 or t!e Nationa& Instit'te o$ Oi& Seed Prod'cts 7NIOP8. 6eca'se IIO de$a'&ted 'nder t!e
contracts, t!e petitioners and )0 ot!ers, initiated ar.itration proceedin%s a.road, and so,e !ave a&read#
o.tained ar.itration a"ards a%ainst IIO.
On Apri& +, )*+-, IIO $i&ed a co,p&aint $or in5'nction and da,a%es a%ainst nineteen 7)*8 $orei%n cocon't
oi& .'#ers inc&'din% t!e petitioners, "it! "!o, its president, @o,inador Monteverde, !ad entered into
contracts $or t!e de&iver# o$ cocon't oi& 7Civi& Case No. +-142);;, RTC Mani&a entit&ed ?I,peria& Ie%eta.&e
Oi& Co., Inc. v. @ia& Corporation Et. A&.?8. IIO rep'diated Monteverde/s contracts on t!e %ro'nds t!at t!e#
"ere ,ere ?paper tradin% in $'t'res? as no act'a& de&iver# o$ t!e cocon't oi& "as a&&e%ed&# intended .# t!e
partiesD t!at t!e 6oard o$ @irectors o$ IIO convened in a specia& ,eetin% on Marc! 3), )*+- and re,oved
@o,inador Monteverde $ro, !is position as president o$ t!e corporation, na,ed in !is p&ace, Rodri%o
Monteverde, and diso"ned @o,inador Monteverde/s a&&e%ed&# i&&e%a& and 'na't!oriJed actsD t!at t!e
de$endants !ave a&&e%ed&# ?!arassed? IIO to co,p&# "it! @o,inador/s contracts and to co,e to a
sett&e,ent "it! t!e,. IIO pra#ed $or t!e iss'ance o$ a te,porar# restrainin% order or "rit o$ pre&i,inar#
in5'nction to stop t!e de$endants $ro, !arassin% IIO "it! t!eir insistent de,ands to reco%niJe t!e
contracts entered into .# @o,inador Monteverde and $ro, portra#in% t!e IIO as one t!at de$a'&ts on its
contracts and o.&i%ations and !as $a&&en into .ad ti,es and $ro, inter$erin% "it! IIO/s nor,a& cond'ct o$
.'siness. IIO a&so pra#ed t!at t!e de$endants pa# it ,ora& da,a%es o$ P0 ,i&&ion, act'a& da,a%es o$ P)2
,i&&ion, e9e,p&ar# da,a%es o$ P0 ,i&&ion, attorne#/s $ees o$ P) ,i&&ion, P(,222 per appearance o$
co'nse&, and &iti%ation e9penses.c!anro.&es virt'a& &a"&i.rar#
On ,otion o$ IIO, respondent C'd%e a't!oriJed it to e$$ect e9traterritoria& service o$ s',,ons to a&& t!e
de$endants t!ro'%! @HL P!i&ippines corporation 7Anne9 68. P'rs'ant to t!at order, t!e petitioners "ere
served "it! s',,ons and cop# o$ t!e co,p&aint .# @HL co'rier service.
On Apri& 30, )*+-, "it!o't s'.,ittin% to t!e co'rt/s 5'risdiction and on&# $or t!e p'rpose o$ o.5ectin% to
said 5'risdiction over t!eir persons, t!e petitioners $i&ed ,otions to dis,iss t!e co,p&aint a%ainst t!e, on
t!e %ro'nd t!at t!e e9traterritoria& service o$ s',,ons to t!e, "as i,proper and t!at !ence t!e co'rt did
not ac<'ire 5'risdiction over t!e,. On @ece,.er )0, )*+-, t!e co'rt denied t!eir ,otions to dis,iss and
'p!e&d t!e va&idit# o$ t!e e9traterritoria& service o$ s',,ons to t!e, on t!e %ro'nd t!at ?t!e present action
re&ates to propert# ri%!ts "!ic! !e in contracts "it!in t!e P!i&ippines, or "!ic! de$endants c&ai, &iens or
interests, act'a& or inc!oate, &e%a& or e<'ita.&e 7par. 3, co,p&aint8. And one o$ t!e re&ie$s de,anded
consists, "!o&&# or in part, in e9c&'din% t!e de$endants $ro, an# interest in s'c! propert# $or t!e reason
t!at t!eir transactions "it! p&ainti$$/s $or,er president are '&tra vires.? F'rt!er,ore, ?as $orei%n
corporations doin% .'siness in t!e P!i&ippines "it!o't a &icense, t!e# opened t!e,se&ves to s'it .e$ore
P!i&ippine co'rts, p'rs'ant to Sec. )(( o$ t!e Corporation Code o$ t!e P!i&ippines.? 7Anne9 H8 T!e
petitioners/ ,otions $or reconsideration o$ t!at order "ere a&so denied .# t!e co'rt 7Anne9 M8, !ence t!is
petition $or certiorari "it! a pra#er $or t!e iss'ance o$ a te,porar# retrainin% order "!ic! =e %ranted.
T!e petition is ,eritorio's.
Section )-, R'&e )4 o$ t!e R'&es o$ Co'rt providesc!anro.)es virt'a& )a" &i.rar#
Section )-. E9traterritoria& service. > =!en t!e de$endant does not recide and is not $o'nd in t!e
P!i&ippines and t!e action a$$ects t!e persona& stat's o$ t!e p&ainti$$ or re&ates to, or t!e s'.5ect o$ "!ic! is,
propert# "it!in t!e P!i&ippines, in "!ic! t!e de$endant !as or c&ai,s a&ien or interest, act'a& or contin%ent,
or in "!ic! t!e re&ie$ de,anded consists, "!o&&# or in part, in e9c&'din% t!e de$endant $ro, an# interest
t!erein, or t!e propert# o$ t!e de$endant !as .een attac!ed "it!in t!e P!i&ippines, service ,a#, .# &eave
o$ co'rt, .e e$$ected o't o$ t!e P!i&ippines .# persona& service as 'ndersection -D or .# p'.&ication in a
ne"spaper o$ %enera& circ'&ation in s'c! p&aces and $or s'c! ti,e as t!e co'rt ,a# order, in "!ic! case a
cop# o$ t!e s',,ons and order o$ t!e co'rt s!a&& .e sent .# re%istered ,ai& to t!e &ast :no"n address o$
t!e de$endant, or in an# ot!er ,anner t!e co'rt ,a# dee, s'$$icient. An# order %rantin% s'c! &eave s!a&&
speci$# a reasona.&e ti,e, "!ic! s!a&& not .e &ess t!an si9t# 7;28 da#s a$ter notice, "it!in "!ic! t!e
de$endant ,'st ans"er.?cra&a" virt'a)a" &i.rar#
On&# in $o'r 748 instances is e9traterritoria& service o$ s',,ons proper, na,e&#? 7)8 "!en t!e action
a$$ects t!e persona& stat's o$ t!e p&ainti$$sD 738 "!en t!e action re&ates to, or t!e s'.5ect o$ "!ic! is,
propert# "it!in t!e P!i&ippines, in "!ic! t!e de$endant !as or c&ai,s a &ien or interest, act'a& or contin%entD
7(8 "!en t!e re&ie$ de,anded in s'c! action consists, "!o&&# or in part, in e9c&'din% t!e de$endant $ro,
an# interest in propert# &ocated in t!e P!i&ippinesD and 748 "!en t!e de$endant non1resident/s propert# !as
.een attac!ed "it!in t!e P!i&ippines? 7@e Mid%e&# v. Ferandos, ;4 SCRA 3(8.
T!e co,p&aint in t!is case does not invo&ve t!e persona& stat's o$ t!e p&ainti$$, nor an# propert# in t!e
P!i&ippines in "!ic! t!e de$endants !ave or c&ai, an interest, or "!ic! t!e p&ainti$$ !as attac!ed. T!e
action is p're&# an action $or in5'nction to restrain t!e de$endants $ro, en$orcin% a%ainst IIO 7?a.'sin%
and !arassin%?8 its contracts $or t!e de&iver# o$ cocon't oi& to t!e de$endants, and to recover $ro, t!e
de$endants P3) ,i&&ion in da,a%es $or s'c! ?!arass,ent.? It is c&ear&# a persona& action as "e&& as an
action in persona,, not an action in re, or <'asi in re,. ?An action in persona, is an action a%ainst a
person on t!e .asis o$ !is persona& &ia.i&it#, "!i&e an action in re, is an action a%ainst t!e t!in% itse&$,
instead o$ a%ainst t!e person.? 7HernandeJ v. R'ra& 6an: o$ L'cena, Inc., -; SCRA +08. A persona& action
is one .ro'%!t $or t!e recover# o$ persona& propert#, $or t!e en$orce,ent o$ so,e contract or recover# o$
da,a%es $or its .reac!, or $or t!e recover# o$ da,a%es $or t!e co,,ission o$ an in5'r# to t!e person or
propert# 7HernandeJ v. @eve&op,ent 6an: o$ t!e P!i&ippines, -) SCRA 3*38.
As Civi& Case No. +-142);; is a persona& action, persona& or s'.stit'ted service o$ s',,ons on t!e
de$endants, not e9traterritoria& service, is necessar# to con$er 5'risdiction on t!e co'rt. T!e r'&e is
e9p&ained in Moran/s Co,,ents on t!e R'&es o$ Co'rt t!'s5%cc!anro.&es.co,.p!
?As a %enera& r'&e, "!en t!e de$endant is not residin% and is not $o'nd in t!e P!i&ippines, t!e P!i&ippine
co'rts cannot tr# an# case a%ainst !i, .eca'se o$ t!e i,possi.i&it# o$ ac<'irin% 5'risdiction over !is
person 'n&ess !e vo&'ntari&# appears in co'rt. 6't, "!en t!e action a$$ects t!e persona& stat's o$ t!e
p&ainti$$ residin% in t!e P!i&ippines, or is intended to seiJe or dispose o$ an# propert#, rea& or persona&, o$
t!e de$endant &ocated in t!e P!i&ippines, it ,a# .e va&id&# tried .# t!e P!i&ippines co'rts, $or t!en, t!e#
!ave 5'risdiction over t!e res, i.e., t!e persona& stat's o$ t!e p&ainti$$ or t!e propert# o$ t!e de$endant and
t!eir 5'risdiction over t!e person o$ t!e non1resident de$endant is not essentia&. Ien'e in s'c! cases ,a#
.e &aid in t!e province "!ere t!e propert# o$ t!e de$endant or a part t!ereo$ invo&ved in t!e &iti%ation is
&ocated.? 70 Moran/s Co,,ents on t!e R'&es o$ Co'rt, 3nd Ed., p. )20.8
In an action $or in5'nction, e9traterritoria& service o$ s',,ons and co,p&aint 'pon t!e non1resident
de$endants cannot s'.5ect t!e, to t!e processes o$ t!e re%iona& tria& co'rts "!ic! are po"er&ess to reac!
t!e, o'tside t!e re%ion over "!ic! t!e# e9ercise t!eir a't!orit# 7Sec. (1a, Interi, R'&es o$ Co'rtD Sec. 3),
s'.par. ), 6.P. 6&%. )3*8. E9traterritoria& service o$ s',,ons "i&& not con$er on t!e co'rt 5'risdiction or
po"er to co,pe& t!e, to o.e# its ordersc!anro.&es &a" &i.rar#
Neit!er ,a# t!e co'rt .# e9traterritoria& service o$ s',,ons ac<'ire 5'risdiction to render and en$orce a
,one# 5'd%,ent a%ainst a non1resident de$endant "!o !as no propert# in t!e P!i&ippines $or ?t!e
$'nda,enta& r'&e is t!at 5'risdiction in persona, over non1residents, so as to s'stain a ,one# 5'd%,ent,
,'st .e .ased 'pon persona& service "it!in t!e state "!ic! renders t!e 5'd%,ent? 76o'dard v. Tait, ;-
P!i&. )-2, )-48.
Respondents/ contention t!at ?t!e action .e&o" is re&ated to propert# "it!in t!e P!i&ippines, speci$ica&&#
contract'a& ri%!ts t!at petitioners are en$orcin% a%ainst IIO? is specio's $or t!e ?contract'a& ri%!ts? o$ t!e
petitioners are not propert# $o'nd in t!e P!i&ippines $or t!e petitioners !ave not $i&ed an action in t!e &oca&
co'rts to en$orce said ri%!ts. T!e# !ave not s'.,itted to t!e 5'risdiction o$ o'r co'rts.
T!e &o"er co'rt invo:ed Section (( o$ t!e Corporation Code "!ic! provides t!at a ?$orei%n corporation
transactin% .'siness in t!e P!i&ippines "it!o't a &icense ,a# .e s'ed or proceeded a%ainst .e$ore
P!i&ippine co'rts or ad,inistrative tri.'na& on an# va&id ca'se o$ action reco%niJed 'nder P!i&ippine &a"s.?
It ass',ed t!at t!e de$endants 7!erein petitioners8 are doin% .'siness in t!e P!i&ippines, "!ic! a&&e%ation
t!e &atter denied. Even i$ t!e# can .e considered as s'c!, t!e Corporation Code did not repea& t!e r'&es
re<'irin% proper service o$ s',,ons to s'c! corporations as provided in R'&e )4 o$ t!e R'&es o$ Co'rt
and Section )3+ o$ t!e Corporation Code.
T!e respondent co'rt/s $indin% t!at, .# $i&in% ,otions to dis,iss, t!e petitioners !#pot!etica&&# ad,itted t!e
a&&e%ations o$ t!e co,p&aint t!at t!e# are doin% .'siness in t!e P!i&ippines "it!o't an# &icense, and t!at
t!e# ,a# .e served "it! s',,ons and ot!er co'rt processes t!ro'%! t!eir a%ents or representatives
en',erated in para%rap! 3 o$ t!e co,p&aint, is contradicted .# its order a't!oriJin% IIO to s',,on t!e,
.# e9traterritoria& service, a ,ode o$ service "!ic! is resorted to "!en t!e de$endant is not $o'nd in t!e
P!i&ippines, does not transact .'siness !ere, and !as no resident a%ent on "!o, t!e s',,ons ,a# .e
served.c!anro.&es virt'a& &a"&i.rar#
=HEREFORE, =e !o&d t!at t!e e9traterritoria& service o$ s',,ons on t!e petitioners "as i,proper,
!ence n'&& and void.
T!e petition $or certiorari is %ranted. T!e orders dated Apri& 34, )*+- 7Anne9 68 and @ece,.er )0, )*+-
7Anne9 II8 o$ t!e respondent C'd%e are !ere.# set aside. T!e co,p&aint in Civi& Case No. +-142);; is
!ere.# dis,issed as a%ainst t!e petitioners $or $ai&'re o$ t!e co'rt to ac<'ire 5'risdiction over t!e,.
EG.R. NO. )-33)- Septe,.er )+, 322*F
SPOUSES LB@IA FLORES1CRUc and REBNAL@O I. CRUc, Petitioners, v. SPOUSES LEONAR@O and
ILUMINA@A GOLI1CRUc, SPOUSES RICO and FELIcA @E LA CRUc, SPOUSES 6OB and LANI @E LA
CRUc, cENAI@A A. CACINTO and ROGELIO @E LOS SANTOS, Respondents.
On @ece,.er )0, )***,4 petitioner spo'ses L#dia F&ores1Cr'J and Re#na&do I. Cr'J p'rc!ased a 0,32*1
s<. ,. &ot sit'ated in P'&on% Banto:, An%at, 6'&acan0 $ro, L#diaQs si.&in%s, na,e&#, Teresita, Ra,on and
@anie& 7a&& s'rna,ed F&ores8. T!eir $at!er, Estanis&ao F&ores, 'sed to o"n t!e &and as an in!eritance $ro,
!is parents Gre%orio F&ores and Ana Man%a!as. Estanis&ao died in )**0. Estanis&ao and, &ater, petitioners
paid t!e rea&t# ta9es on t!e &and a&t!o'%! neit!er o$ t!e, occ'pied it. Petitioners so&d portions t!ereo$ to
t!ird parties so,eti,e in Septe,.er 3222.;
A$ter t!e deat! o$ Estanis&ao, petitioners $o'nd o't t!at respondent spo'ses Leonardo and I&',inada Go&i1
Cr'J et a&. "ere occ'p#in% a section o$ t!e &and. Initia&&#, petitioner L#dia ta&:ed to respondents and
o$$ered to se&& t!e, t!e portions t!e# "ere occ'p#in% .'t t!e ta&:s $ai&ed as t!e# co'&d not a%ree on t!e
price. On Marc! 3, 322), petitionersQ &a"#er sent respondents &etters as:in% t!e, to &eave. T!ese
de,ands, !o"ever, "ere i%nored. E$$orts at .aran%a# conci&iation a&so $ai&ed.-
Respondents co'ntered t!at t!eir possession o$ t!e &and ran%ed $ro, )2 to 32 #ears. Accordin% to
respondents, t!e propert# "as a&iena.&e p'.&ic &and.+ Prior to petitionersQ de,and, t!e# !ad no :no"&ed%e
o$ petitionersQ and t!eir predecessorQs o"ners!ip o$ t!e &and. T!e# too: steps to &e%iti,iJe t!eir c&ai, and
paid t!e rea&t# ta9 on t!eir respective areas $or t!e ta9a.&e #ear 3223. S'.se<'ent&#, !o"ever, t!e ta9
dec&arations iss'ed to t!e, "ere cance&&ed .# t!e Provincia& Assessors O$$ice and re1iss'ed to
petitioners.*
On A'%'st ;, 322), petitioners $i&ed a co,p&aint $or recover# o$ possession o$ t!e &and in t!e Re%iona&
Tria& Co'rt 7RTC8 o$ Ma&o&os, 6'&acan, 6ranc! +3.)2 Respondents $i&ed a ,otion to dis,iss c&ai,in%,
a,on% ot!ers, t!at t!e RTC !ad no 5'risdiction over t!e case as it s!o'&d !ave .een $i&ed in t!e M'nicipa&
Tria& Co'rt 7MTC8 since it "as a s',,ar# action $or e5ect,ent 'nder R'&e -2 o$ t!e R'&es o$ Co'rt. T!e
RTC denied t!e ,otion in an order dated Nove,.er *, 322).))
A$ter tria&, t!e RTC rendered a decision dated Octo.er (, 322( in $avor o$ petitioners and ordered
respondents to vacate t!e &and, and pa# attorne#Qs $ees and costs o$ s'it.)3 STUVUWXWrUY.&UZ[\ U]U^r_` Sa
UW& &UWSb &U^.rUWrXY
On appea& .# respondents to t!e CA, t!e &atter, in a decision dated A'%'st 3(, 3220, r'&ed t!at t!e RTC
!ad no 5'risdiction over t!e action $or recover# o$ possession .eca'se petitioners !ad .een dispossessed
o$ t!e propert# $or &ess t!an a #ear. It !e&d t!at t!e co,p&aint "as one $or 'n&a"$'& detainer "!ic! s!o'&d
!ave .een $i&ed in t!e MTC. T!'s, it r'&ed t!at t!e RTC decision "as n'&& and void. Reconsideration "as
denied on Apri& 0, 322;.
Hence, t!is petition.
T!e iss'e $or o'r reso&'tion is "!et!er t!e RTC !ad 5'risdiction over t!is case.
T!e petition !as no ,erit.
It is a9io,atic t!at t!e nat're o$ t!e action 1 on "!ic! depends t!e <'estion o$ "!et!er a s'it is "it!in t!e
5'risdiction o$ t!e co'rt 1 is deter,ined so&e&# .# t!e a&&e%ations in t!e co,p&aint)( and t!e &a" at t!e ti,e
t!e action "as co,,enced.)4 On&# $acts a&&e%ed in t!e co,p&aint can .e t!e .asis $or deter,inin% t!e
nat're o$ t!e action and t!e co'rtQs co,petence to ta:e co%niJance o$ it.)0 One cannot advert to an#t!in%
not set $ort! in t!e co,p&aint, s'c! as evidence add'ced at t!e tria&, to deter,ine t!e nat're o$ t!e action
t!ere.# initiated.);
PetitionersQ co,p&aint contained t!e $o&&o"in% a&&e%ations
9 9 9 9 9 9 9 9 9
(. T!at, EpetitionersF are o"ners o$ a piece o$ &and :no"n as Lot (21part, Cad. (4* &ocated at P'&on%
Banto:, An%at, 6'&acan as s!o"n .# a cop# o$ Ta9 @ec&aration No. **12)2)212))4) ,ade EanF inte%ra&
EpartF !ereo$ as Anne9 ?A?D
4. T!at, said Lot No. (21part "as ac<'ired t!ro'%! Ep'rc!aseF on @ece,.er )0, )***, as s!o"n .# EaF
@eed o$ A.so&'te Sa&e o$ Uns'.divided Land ,ade EanF inte%ra& EpartF !ereo$ as Anne9 ?6, 61) M 613?D
0. T!at, "!en EpetitionersF inspected s'.5ect propert#, t!e# $o'nd it to .e occ'pied .# at &east $ive 708
!o'se!o&ds 'nder t!e na,es o$ !erein ErespondentsF, "!o, "!en as:ed a.o't t!eir ri%!t to sta# "it!in t!e
pre,ises rep&ied t!at t!e# "ere a&&o"ed to &ive t!ereat .# t!e deceased $or,er o"nerD
;. T!at, EpetitionersF in$or,ed t!e ErespondentsF t!at as $ar as t!e# are concerned, t!e &atterQs occ'panc#
"as not co,,'nicated to t!e, so it $o&&o"s t!at t!e# do not !ave an# ri%!t to re,ain "it!in s'.5ect piece
o$ &andD
-. T!at, ErespondentsF see, to .e 'ni,pressed and ,ade no ,ove to &eave t!e pre,ises or to co,e to
ter,s "it! t!e EpetitionersF so ,'c! so t!at Et!e &atterF as:ed t!eir &a"#er to "rite de,and &etters to eac!
and ever#one o$ t!e ErespondentsF as s!o"n .# t!e de,and &etters dated Marc! 3, 322) ,ade inte%ra&
part !ereo$ as Anne9 ?C, C1), C13, C1(, M C14?D
+. T!at, t!ere is no e9istin% a%ree,ent or an# doc',ent t!at i&&'strate "!atever per,ission, i$ an# "ere
%iven, t!at t!e ErespondentsF presented to EpetitionersF in order to &e%iti,iJe t!e c&ai,D
*. T!at, it is c&ear t!at ErespondentsF occ'p# portions o$ s'.5ect propert# eit!er .# stea&t!, strata%e,, $orce
or an# 'n&a"$'& ,anner "!ic! are 5'st .ases $or e5ect,entD
9 9 9 9 9 9 9 9 9)-
Accordin% to t!e CA, considerin% t!at petitioners c&ai,ed t!at respondents "ere possessors o$ t!e
propert# .# ,ere to&erance on&# and t!e co,p&aint !ad .een initiated &ess t!an a #ear $ro, t!e de,and to
vacate, t!e proper re,ed# "as an action $or 'n&a"$'& detainer "!ic! s!o'&d !ave .een $i&ed in t!e MTC.
=e a%ree.
T!e necessar# a&&e%ations in a co,p&aint $or e5ect,ent are set $ort! in Section ), R'&e -2 o$ t!e R'&es o$
Co'rt.)+ Petitioners a&&e%ed t!at t!e $or,er o"ner 7Estanis&ao, t!eir predecessor8 a&&o"ed respondents to
&ive on t!e &and. T!e# a&so stated t!at t!e# p'rc!ased t!e propert# on @ece,.er )0, )*** and t!en $o'nd
respondents occ'p#in% t!e propert#. Bet t!e# de,anded t!at respondents vacate on&# on Marc! 3, 322).
It can .e %&eaned $ro, t!eir a&&e%ations t!at t!e# !ad in $act per,itted or to&erated respondentsQ
occ'panc#.
6ased on t!e a&&e%ations in petitionersQ co,p&aint, it is apparent t!at s'c! is a co,p&aint $or 'n&a"$'&
detainer .ased on possession .# to&erance o$ t!e o"ner.)* It is a sett&ed r'&e t!at in order to 5'sti$# s'c!
an action, t!e o"nerQs per,ission or to&erance ,'st .e present at t!e .e%innin% o$ t!e possession.32
S'c! 5'risdictiona& $acts are present !ere.
T!ere is anot!er reason "!# petitionersQ co,p&aint "as not a proper action $or recover# o$ possession
co%niJa.&e .# t!e RTC. It is no &on%er tr'e t!at a&& cases o$ recover# o$ possession or accion p'.&iciana &ie
"it! t!e RTC re%ard&ess o$ t!e va&'e o$ t!e propert#.3)
=!en t!e case "as $i&ed in 322), Con%ress !ad a&read# approved Rep'.&ic Act No. -;*)33 "!ic!
e9panded t!e MTCQs 5'risdiction to inc&'de ot!er actions invo&vin% tit&e to or possession o$ rea& propert#
7accion p'.&iciana and reinvindicatoria83( "!ere t!e assessed va&'e o$ t!e propert# does not e9ceed
P32,222 7or P02,222, $or actions $i&ed in Metro Mani&a8.34 6eca'se o$ t!is a,end,ent, t!e test o$ "!et!er
an action invo&vin% possession o$ rea& propert# !as .een $i&ed in t!e proper co'rt no &on%er depends so&e&#
on t!e t#pe o$ action $i&ed .'t a&so on t!e assessed va&'e o$ t!e propert# invo&ved.30 More speci$ica&&#,
since MTCs no" !ave 5'risdiction over accion p'.&iciana and accion reinvindicatoria 7dependin%, o$
co'rse, on t!e assessed va&'e o$ t!e propert#8, 5'risdiction over s'c! actions !as to .e deter,ined on t!e
.asis o$ t!e assessed va&'e o$ t!e propert#.3; STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
T!is iss'e o$ assessed va&'e as a 5'risdictiona& e&e,ent in accion p'.&iciana "as not raised .# t!e parties
nor t!res!ed o't in t!eir p&eadin%s.3- 6e t!at as it ,a#, t!e Co'rt can ,ot' proprio consider and reso&ve
t!is <'estion .eca'se 5'risdiction is con$erred on&# .# &a".3+ It cannot .e ac<'ired t!ro'%!, or "aived .#,
an# act or o,ission o$ t!e parties.3*
To deter,ine "!ic! co'rt 7RTC or MTC8 !as 5'risdiction over t!e action, t!e co,p&aint ,'st a&&e%e t!e
assessed va&'e o$ t!e rea& propert# s'.5ect o$ t!e co,p&aint or t!e interest t!ereon.(2 T!e co,p&aint did
not contain an# s'c! a&&e%ation on t!e assessed va&'e o$ t!e propert#. T!ere is no s!o"in% on t!e $ace o$
t!e co,p&aint t!at t!e RTC !ad 5'risdiction over t!e action o$ petitioners.() Indeed, a.sent an# a&&e%ation
in t!e co,p&aint o$ t!e assessed va&'e o$ t!e propert#, it cannot .e deter,ined "!et!er it is t!e RTC or
t!e MTC "!ic! !as ori%ina& and e9c&'sive 5'risdiction over t!e petitionersQ action.(3
Moreover, t!e co,p&aint "as $i&ed 7A'%'st ;, 322)8 "it!in one #ear $ro, t!e de,and to vacate "as ,ade
7Marc! 3, 322)8. PetitionersQ dispossession !ad t!'s not &asted $or ,ore t!an one #ear to 5'sti$# resort to
t!e re,ed# o$ accion p'.&iciana.((
Since petitionersQ co,p&aint ,ade o't a case $or 'n&a"$'& detainer "!ic! s!o'&d !ave .een $i&ed in t!e
MTC and it contained no a&&e%ation on t!e assessed va&'e o$ t!e s'.5ect propert#, t!e RTC serio's&# erred
in proceedin% "it! t!e case. T!e proceedin%s .e$ore a co'rt "it!o't 5'risdiction, inc&'din% its decision, are
n'&& and void.(4 It $o&&o"s t!at t!e CA "as correct in dis,issin% t!e case.
=HEREFORE, t!e petition is @ENIE@.
NAcUHIRO HASEGA=A and NIPPON ENGINEERING CONSULTANTS CO., LT@., Petitioners, v.
MINORU NITAMURA, Respondent.
On Marc! (2, )***, petitioner Nippon En%ineerin% Cons'&tants Co., Ltd. 7Nippon8, a Capanese
cons'&tanc# $ir, providin% tec!nica& and ,ana%e,ent s'pport in t!e in$rastr'ct're pro5ects o$ $orei%n
%overn,ents,( entered into an Independent Contractor A%ree,ent 7ICA8 "it! respondent Minor'
Nita,'ra, a Capanese nationa& per,anent&# residin% in t!e P!i&ippines.4 T!e a%ree,ent provides t!at
respondent "as to e9tend pro$essiona& services to Nippon $or a #ear startin% on Apri& ), )***.0 Nippon
t!en assi%ned respondent to "or: as t!e pro5ect ,ana%er o$ t!e So't!ern Ta%a&o% Access Road 7STAR8
Pro5ect in t!e P!i&ippines, $o&&o"in% t!e co,pan#Qs cons'&tanc# contract "it! t!e P!i&ippine Govern,ent.;
=!en t!e STAR Pro5ect "as near co,p&etion, t!e @epart,ent o$ P'.&ic =or:s and Hi%!"a#s 7@P=H8
en%a%ed t!e cons'&tanc# services o$ Nippon, on Can'ar# 3+, 3222, t!is ti,e $or t!e detai&ed en%ineerin%
and constr'ction s'pervision o$ t!e 6on%a.on16a&er Road I,prove,ent 766RI8 Pro5ect.- Respondent "as
na,ed as t!e pro5ect ,ana%er in t!e contractQs Appendi9 (.).+
On Fe.r'ar# 3+, 3222, petitioner NaJ'!iro Hase%a"a, NipponQs %enera& ,ana%er $or its Internationa&
@ivision, in$or,ed respondent t!at t!e co,pan# !ad no ,ore intention o$ a'to,atica&&# rene"in% !is ICA.
His services "o'&d .e en%a%ed .# t!e co,pan# on&# 'p to t!e s'.stantia& co,p&etion o$ t!e STAR Pro5ect
on Marc! (), 3222, 5'st in ti,e $or t!e ICAQs e9pir#.*
T!reatened "it! i,pendin% 'ne,p&o#,ent, respondent, t!ro'%! !is &a"#er, re<'ested a ne%otiation
con$erence and de,anded t!at !e .e assi%ned to t!e 66RI pro5ect. Nippon insisted t!at respondentQs
contract "as $or a $i9ed ter, t!at !ad a&read# e9pired, and re$'sed to ne%otiate $or t!e rene"a& o$ t!e
ICA.)2
As !e "as not a.&e to %enerate a positive response $ro, t!e petitioners, respondent conse<'ent&# initiated
on C'ne ), 3222 Civi& Case No. 22123;4 $or speci$ic per$or,ance and da,a%es "it! t!e Re%iona& Tria&
Co'rt o$ Lipa Cit#.))
For t!eir part, petitioners, contendin% t!at t!e ICA !ad .een per$ected in Capan and e9ec'ted .# and
.et"een Capanese nationa&s, ,oved to dis,iss t!e co,p&aint $or &ac: o$ 5'risdiction. T!e# asserted t!at
t!e c&ai, $or i,proper pre1ter,ination o$ respondentQs ICA co'&d on&# .e !eard and venti&ated in t!e
proper co'rts o$ Capan $o&&o"in% t!e princip&es o$ &e9 &oci ce&e.rationis and &e9 contract's.)3
In t!e ,eanti,e, on C'ne 32, 3222, t!e @P=H approved NipponQs re<'est $or t!e rep&ace,ent o$
Nita,'ra .# a certain B. Nota:e as pro5ect ,ana%er o$ t!e 66RI Pro5ect.)(
On C'ne 3*, 3222, t!e RTC, invo:in% o'r r'&in% in Ins'&ar Govern,ent v. Fran:)4 t!at ,atters connected
"it! t!e per$or,ance o$ contracts are re%'&ated .# t!e &a" prevai&in% at t!e p&ace o$ per$or,ance,)0
denied t!e ,otion to dis,iss.); T!e tria& co'rt s'.se<'ent&# denied petitionersQ ,otion $or
reconsideration,)- pro,ptin% t!e, to $i&e "it! t!e appe&&ate co'rt, on A'%'st )4, 3222, t!eir $irst Petition
$or Certiorari 'nder R'&e ;0 Edoc:eted as CA1G.R. SP No. ;2320F.)+ On A'%'st 3(, 3222, t!e CA
reso&ved to dis,iss t!e petition on proced'ra& %ro'ndsQ$or &ac: o$ state,ent o$ ,ateria& dates and $or
ins'$$icient veri$ication and certi$ication a%ainst $or', s!oppin%.)* An Entr# o$ C'd%,ent "as &ater iss'ed
.# t!e appe&&ate co'rt on Septe,.er 32, 3222.32
A%%rieved .# t!is deve&op,ent, petitioners $i&ed "it! t!e CA, on Septe,.er )*, 3222, sti&& "it!in t!e
re%&e,entar# period, a second Petition $or Certiorari 'nder R'&e ;0 a&read# statin% t!erein t!e ,ateria&
dates and attac!in% t!ereto t!e proper veri$ication and certi$ication. T!is second petition, "!ic!
s'.stantia&&# raised t!e sa,e iss'es as t!ose in t!e $irst, "as doc:eted as CA1G.R. SP No. ;2+3-.3)
R'&in% on t!e ,erits o$ t!e second petition, t!e appe&&ate co'rt rendered t!e assai&ed Apri& )+, 322)
@ecision33 $indin% no %rave a.'se o$ discretion in t!e tria& co'rtQs denia& o$ t!e ,otion to dis,iss. T!e CA
r'&ed, a,on% ot!ers, t!at t!e princip&e o$ &e9 &oci ce&e.rationis "as not app&ica.&e to t!e case, .eca'se
no"!ere in t!e p&eadin%s "as t!e va&idit# o$ t!e "ritten a%ree,ent p't in iss'e. T!e CA t!'s dec&ared t!at
t!e tria& co'rt "as correct in app&#in% instead t!e princip&e o$ &e9 &oci so&'tionis.3(
PetitionersQ ,otion $or reconsideration "as s'.se<'ent&# denied .# t!e CA in t!e assai&ed C'&# 30, 322)
Reso&'tion.34
Re,ainin% stead$ast in t!eir stance despite t!e series o$ denia&s, petitioners instit'ted t!e instant Petition
$or Revie" on Certiorari30 i,p'tin% t!e $o&&o"in% errors to t!e appe&&ate co'rt
A. THE HONORA6LE COURT OF APPEALS GRAIELB ERRE@ IN FIN@ING THAT THE TRIAL COURT
IALI@LB EHERCISE@ CURIS@ICTION OIER THE INSTANT CONTROIERSB, @ESPITE THE FACT
THAT THE CONTRACT SU6CECT MATTER OF THE PROCEE@INGS A AUO =AS ENTERE@ INTO 6B
AN@ 6ET=EEN T=O CAPANESE NATIONALS, =RITTEN =HOLLB IN THE CAPANESE LANGUAGE
AN@ EHECUTE@ IN TONBO, CAPAN.
6. THE HONORA6LE COURT OF APPEALS GRAIELB ERRE@ IN OIERLOONING THE NEE@ TO
REIIE= OUR A@HERENCE TO THE PRINCIPLE OF LEH LOCI SOLUTIONIS IN THE LIGHT OF
RECENT @EIELOPMENTESF IN PRIIATE INTERNATIONAL LA=S.3;
T!e pivota& <'estion t!at t!is Co'rt is ca&&ed 'pon to reso&ve is "!et!er t!e s'.5ect ,atter 5'risdiction o$
P!i&ippine co'rts in civi& cases $or speci$ic per$or,ance and da,a%es invo&vin% contracts e9ec'ted o'tside
t!e co'ntr# .# $orei%n nationa&s ,a# .e assai&ed on t!e princip&es o$ &e9 &oci ce&e.rationis, &e9 contract's,
t!e ?state o$ t!e ,ost si%ni$icant re&ations!ip r'&e,? or $or', non conveniens.
Ho"ever, .e$ore r'&in% on t!is iss'e, "e ,'st $irst dispose o$ t!e proced'ra& ,atters raised .# t!e
respondent.
Nita,'ra contends t!at t!e $ina&it# o$ t!e appe&&ate co'rtQs decision in CA1G.R. SP No. ;2320 !as a&read#
.arred t!e $i&in% o$ t!e second petition doc:eted as CA1G.R. SP No. ;2+3- 7$'nda,enta&&# raisin% t!e
sa,e iss'es as t!ose in t!e $irst one8 and t!e instant Petition $or Revie" t!ereo$.
=e do not a%ree. =!en t!e CA dis,issed CA1G.R. SP No. ;2320 on acco'nt o$ t!e petitionQs de$ective
certi$ication o$ non1$or', s!oppin%, it "as a dis,issa& "it!o't pre5'dice.3- T!e sa,e !o&ds tr'e in t!e
CAQs dis,issa& o$ t!e said case d'e to de$ects in t!e $or,a& re<'ire,ent o$ veri$ication3+ and in t!e ot!er
re<'ire,ent in R'&e 4; o$ t!e R'&es o$ Co'rt on t!e state,ent o$ t!e ,ateria& dates.3* T!e dis,issa&
.ein% "it!o't pre5'dice, petitioners can re1$i&e t!e petition, or $i&e a second petition attac!in% t!ereto t!e
appropriate veri$ication and certi$ication as t!e#, in $act did and statin% t!erein t!e ,ateria& dates, "it!in
t!e prescri.ed period(2 in Section 4, R'&e ;0 o$ t!e said R'&es.()
T!e dis,issa& o$ a case "it!o't pre5'dice si%ni$ies t!e a.sence o$ a decision on t!e ,erits and &eaves t!e
parties $ree to &iti%ate t!e ,atter in a s'.se<'ent action as t!o'%! t!e dis,issed action !ad not .een
co,,enced. In ot!er "ords, t!e ter,ination o$ a case not on t!e ,erits does not .ar anot!er action
invo&vin% t!e sa,e parties, on t!e sa,e s'.5ect ,atter and t!eor#.(3
Necessari&#, .eca'se t!e said dis,issa& is "it!o't pre5'dice and !as no res 5'dicatae$$ect, and even i$
petitioners sti&& indicated in t!e veri$ication and certi$ication o$ t!e second certiorari petition t!at t!e $irst
!ad a&read# .een dis,issed on proced'ra& %ro'nds,(( petitioners are no &on%er re<'ired .# t!e R'&es to
indicate in t!eir certi$ication o$ non1$or', s!oppin% in t!e instant Petition $or Revie" o$ t!e second
certiorari petition, t!e stat's o$ t!e a$oresaid $irst petition .e$ore t!e CA. In an# case, an o,ission in t!e
certi$icate o$ non1$or', s!oppin% a.o't an# event t!at "i&& not constit'te res 5'dicata and &itis pendentia,
as in t!e present case, is not a $ata& de$ect. It "i&& not "arrant t!e dis,issa& and n'&&i$ication o$ t!e entire
proceedin%s, considerin% t!at t!e evi&s so'%!t to .e prevented .# t!e said certi$icate are no &on%er
present.(4
T!e Co'rt a&so $inds no ,erit in respondentQs contention t!at petitioner Hase%a"a is on&# a't!oriJed to
veri$# and certi$#, on .e!a&$ o$ Nippon, t!e certiorari petition $i&ed "it! t!e CA and not t!e instant petition.
Tr'e, t!e A't!oriJation(0 dated Septe,.er 4, 3222, "!ic! is attac!ed to t!e second certiorari petition and
"!ic! is a&so attac!ed to t!e instant Petition $or Revie", is &i,ited in scope its "ordin%s indicate t!at
Hase%a"a is %iven t!e a't!orit# to si%n $or and act on .e!a&$ o$ t!e co,pan# on&# in t!e petition $i&ed "it!
t!e appe&&ate co'rt, and t!at a't!orit# cannot e9tend to t!e instant Petition $or Revie" .(; In a p&et!ora o$
cases, !o"ever, t!is Co'rt !as &i.era&&# app&ied t!e R'&es or even s'spended its app&ication "!enever a
satis$actor# e9p&anation and a s'.se<'ent $'&$i&&,ent o$ t!e re<'ire,ents !ave .een ,ade.(- Given t!at
petitioners !erein s'$$icient&# e9p&ained t!eir ,is%ivin%s on t!is point and appended to t!eir Rep&#(+ an
'pdated A't!oriJation(* $or Hase%a"a to act on .e!a&$ o$ t!e co,pan# in t!e instant petition, t!e Co'rt
$inds t!e sa,e as s'$$icient co,p&iance "it! t!e R'&es.
Ho"ever, t!e Co'rt cannot e9tend t!e sa,e &i.era& treat,ent to t!e de$ect in t!e veri$ication and
certi$ication. As respondent pointed o't, and to "!ic! "e a%ree, Hase%a"a is tr'&# not a't!oriJed to act
on .e!a&$ o$ Nippon in t!is case. T!e a$oresaid Septe,.er 4, 3222 A't!oriJation and even t!e
s'.se<'ent A'%'st )-, 322) A't!oriJation "ere iss'ed on&# .# NipponQs president and c!ie$ e9ec'tive
o$$icer, not .# t!e co,pan#Qs .oard o$ directors. In not a $e" cases, "e !ave r'&ed t!at corporate po"ers
are e9ercised .# t!e .oard o$ directorsD t!'s, no person, not even its o$$icers, can .ind t!e corporation, in
t!e a.sence o$ a't!orit# $ro, t!e .oard.42 Considerin% t!at Hase%a"a veri$ied and certi$ied t!e petition
on&# on !is .e!a&$ and not on .e!a&$ o$ t!e ot!er petitioner, t!e petition !as to .e denied p'rs'ant to
Lo<'ias v. O$$ice o$ t!e O,.'ds,an.4) S'.stantia& co,p&iance "i&& not s'$$ice in a ,atter t!at de,ands
strict o.servance o$ t!e R'&es.43 =!i&e tec!nica& r'&es o$ proced're are desi%ned not to $r'strate t!e ends
o$ 5'stice, nonet!e&ess, t!e# are intended to e$$ect t!e proper and order&# disposition o$ cases and
e$$ective&# prevent t!e c&o%%in% o$ co'rt doc:ets.4(
F'rt!er, t!e Co'rt !as o.served t!at petitioners incorrect&# $i&ed a R'&e ;0 petition to <'estion t!e tria&
co'rtQs denia& o$ t!eir ,otion to dis,iss. It is a "e&&1esta.&is!ed r'&e t!at an order den#in% a ,otion to
dis,iss is inter&oc'tor#, and cannot .e t!e s'.5ect o$ t!e e9traordinar# Petition $or Certiorari or
,anda,'s. T!e appropriate reco'rse is to $i&e an ans"er and to interpose as de$enses t!e o.5ections
raised in t!e ,otion, to proceed to tria&, and, in case o$ an adverse decision, to e&evate t!e entire case .#
appea& in d'e co'rse.44 =!i&e t!ere are reco%niJed e9ceptions to t!is r'&e,40 petitionersQ case does not
$a&& a,on% t!e,.
T!is .rin%s 's to t!e disc'ssion o$ t!e s'.stantive iss'e o$ t!e case.
Assertin% t!at t!e RTC o$ Lipa Cit# is an inconvenient $or',, petitioners <'estion its 5'risdiction to !ear
and reso&ve t!e civi& case $or speci$ic per$or,ance and da,a%es $i&ed .# t!e respondent. T!e ICA s'.5ect
o$ t!e &iti%ation "as entered into and per$ected in To:#o, Capan, .# Capanese nationa&s, and "ritten "!o&&#
in t!e Capanese &an%'a%e. T!'s, petitioners posit t!at &oca& co'rts !ave no s'.stantia& re&ations!ip to t!e
parties4; $o&&o"in% t!e Estate o$ t!eF ,ost si%ni$icant re&ations!ip r'&e in Private Internationa& La".4-
T!e Co'rt notes t!at petitioners adopted an additiona& .'t di$$erent t!eor# "!en t!e# e&evated t!e case to
t!e appe&&ate co'rt. In t!e Motion to @is,iss4+ $i&ed "it! t!e tria& co'rt, petitioners never contended t!at
t!e RTC is an inconvenient $or',. T!e# ,ere&# ar%'ed t!at t!e app&ica.&e &a" "!ic! "i&& deter,ine t!e
va&idit# or inva&idit# o$ respondentQs c&ai, is t!at o$ Capan, $o&&o"in% t!e princip&es o$ &e9 &oci ce&e.rationis
and &e9 contract's.4* =!i&e not a.andonin% t!is stance in t!eir petition .e$ore t!e appe&&ate co'rt,
petitioners on certiorari si%ni$icant&# invo:ed t!e de$ense o$ $or', non conveniens.02 On Petition $or
Revie" .e$ore t!is Co'rt, petitioners dropped t!eir ot!er ar%',ents, ,aintained t!e $or', non
conveniens de$ense, and introd'ced t!eir ne" ar%',ent t!at t!e app&ica.&e princip&e is t!e Estate o$ t!eF
,ost si%ni$icant re&ations!ip r'&e.0)
6e t!at as it ,a#, t!is Co'rt is not inc&ined to den# t!is petition ,ere&# on t!e .asis o$ t!e c!an%e in
t!eor#, as e9p&ained in P!i&ippine Ports A't!orit# v. Cit# o$ I&oi&o.03 =e on&# pointed o't petitionersQ
inconstanc# in t!eir ar%',ents to e,p!asiJe t!eir incorrect assertion o$ con$&ict o$ &a"s princip&es.
To e&'cidate, in t!e 5'dicia& reso&'tion o$ con$&icts pro.&e,s, t!ree consec'tive p!ases are invo&ved
5'risdiction, c!oice o$ &a", and reco%nition and en$orce,ent o$ 5'd%,ents. Correspondin% to t!ese p!ases
are t!e $o&&o"in% <'estions 7)8 =!ere can or s!o'&d &iti%ation .e initiatedR 738 =!ic! &a" "i&& t!e co'rt
app&#R and 7(8 =!ere can t!e res'&tin% 5'd%,ent .e en$orcedR0(
Ana&#tica&&#, 5'risdiction and c!oice o$ &a" are t"o distinct concepts.04 C'risdiction considers "!et!er it is
$air to ca'se a de$endant to trave& to t!is stateD c!oice o$ &a" as:s t!e $'rt!er <'estion "!et!er t!e
app&ication o$ a s'.stantive &a" "!ic! "i&& deter,ine t!e ,erits o$ t!e case is $air to .ot! parties. T!e
po"er to e9ercise 5'risdiction does not a'to,atica&&# %ive a state constit'tiona& a't!orit# to app&# $or',
&a". =!i&e 5'risdiction and t!e c!oice o$ t!e &e9 $ori "i&& o$ten coincide, t!e ?,ini,', contacts? $or one do
not a&"a#s provide t!e necessar# ?si%ni$icant contacts? $or t!e ot!er.00 T!e <'estion o$ "!et!er t!e &a" o$
a state can .e app&ied to a transaction is di$$erent $ro, t!e <'estion o$ "!et!er t!e co'rts o$ t!at state
!ave 5'risdiction to enter a 5'd%,ent.0;
In t!is case, on&# t!e $irst p!ase is at iss'e 5'risdiction.STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
C'risdiction, !o"ever, !as vario's aspects. For a co'rt to va&id&# e9ercise its po"er to ad5'dicate a
controvers#, it ,'st !ave 5'risdiction over t!e p&ainti$$ or t!e petitioner, over t!e de$endant or t!e
respondent, over t!e s'.5ect ,atter, over t!e iss'es o$ t!e case and, in cases invo&vin% propert#, over t!e
res or t!e t!in% "!ic! is t!e s'.5ect o$ t!e &iti%ation.0- In assai&in% t!e tria& co'rtQs 5'risdiction !erein,
petitioners are act'a&&# re$errin% to s'.5ect ,atter 5'risdiction.
C'risdiction over t!e s'.5ect ,atter in a 5'dicia& proceedin% is con$erred .# t!e soverei%n a't!orit# "!ic!
esta.&is!es and or%aniJes t!e co'rt. It is %iven on&# .# &a" and in t!e ,anner prescri.ed .# &a".0+ It is
$'rt!er deter,ined .# t!e a&&e%ations o$ t!e co,p&aint irrespective o$ "!et!er t!e p&ainti$$ is entit&ed to a&&
or so,e o$ t!e c&ai,s asserted t!erein.0* To s'cceed in its ,otion $or t!e dis,issa& o$ an action $or &ac: o$
5'risdiction over t!e s'.5ect ,atter o$ t!e c&ai,,;2 t!e ,ovant ,'st s!o" t!at t!e co'rt or tri.'na& cannot
act on t!e ,atter s'.,itted to it .eca'se no &a" %rants it t!e po"er to ad5'dicate t!e c&ai,s.;)
In t!e instant case, petitioners, in t!eir ,otion to dis,iss, do not c&ai, t!at t!e tria& co'rt is not proper&#
vested .# &a" "it! 5'risdiction to !ear t!e s'.5ect controvers# $or, indeed, Civi& Case No. 22123;4 $or
speci$ic per$or,ance and da,a%es is one not capa.&e o$ pec'niar# esti,ation and is proper&# co%niJa.&e
.# t!e RTC o$ Lipa Cit#.;3 =!at t!e# rat!er raise as %ro'nds to <'estion s'.5ect ,atter 5'risdiction are
t!e princip&es o$ &e9 &oci ce&e.rationis and &e9 contract's, and t!e ?state o$ t!e ,ost si%ni$icant re&ations!ip
r'&e.?
T!e Co'rt $inds t!e invocation o$ t!ese %ro'nds 'nso'nd.
Le9 &oci ce&e.rationis re&ates to t!e ?&a" o$ t!e p&ace o$ t!e cere,on#?;( or t!e &a" o$ t!e p&ace "!ere a
contract is ,ade.;4 T!e doctrine o$ &e9 contract's or &e9 &oci contract's ,eans t!e ?&a" o$ t!e p&ace
"!ere a contract is e9ec'ted or to .e per$or,ed.?;0 It contro&s t!e nat're, constr'ction, and va&idit# o$ t!e
contract;; and it ,a# pertain to t!e &a" vo&'ntari&# a%reed 'pon .# t!e parties or t!e &a" intended .# t!e,
eit!er e9press&# or i,p&icit&#.;- Under t!e ?state o$ t!e ,ost si%ni$icant re&ations!ip r'&e,? to ascertain "!at
state &a" to app&# to a disp'te, t!e co'rt s!o'&d deter,ine "!ic! state !as t!e ,ost s'.stantia&
connection to t!e occ'rrence and t!e parties. In a case invo&vin% a contract, t!e co'rt s!o'&d consider
"!ere t!e contract "as ,ade, "as ne%otiated, "as to .e per$or,ed, and t!e do,ici&e, p&ace o$ .'siness,
or p&ace o$ incorporation o$ t!e parties.;+ T!is r'&e ta:es into acco'nt severa& contacts and eva&'ates
t!e, accordin% to t!eir re&ative i,portance "it! respect to t!e partic'&ar iss'e to .e reso&ved.;*
Since t!ese t!ree princip&es in con$&ict o$ &a"s ,a:e re$erence to t!e &a" app&ica.&e to a disp'te, t!e# are
r'&es proper $or t!e second p!ase, t!e c!oice o$ &a".-2 T!e# deter,ine "!ic! stateQs &a" is to .e app&ied
in reso&vin% t!e s'.stantive iss'es o$ a con$&icts pro.&e,.-) Necessari&#, as t!e on&# iss'e in t!is case is
t!at o$ 5'risdiction, c!oice1o$1&a" r'&es are not on&# inapp&ica.&e .'t a&so not #et ca&&ed $or.
F'rt!er, petitionersQ pre,at're invocation o$ c!oice1o$1&a" r'&es is e9posed .# t!e $act t!at t!e# !ave not
#et pointed o't an# con$&ict .et"een t!e &a"s o$ Capan and o'rs. 6e$ore deter,inin% "!ic! &a" s!o'&d
app&#, $irst t!ere s!o'&d e9ist a con$&ict o$ &a"s sit'ation re<'irin% t!e app&ication o$ t!e con$&ict o$ &a"s
r'&es.-3 A&so, "!en t!e &a" o$ a $orei%n co'ntr# is invo:ed to provide t!e proper r'&es $or t!e so&'tion o$ a
case, t!e e9istence o$ s'c! &a" ,'st .e p&eaded and proved.-(
It s!o'&d .e noted t!at "!en a con$&icts case, one invo&vin% a $orei%n e&e,ent, is .ro'%!t .e$ore a co'rt or
ad,inistrative a%enc#, t!ere are t!ree a&ternatives open to t!e &atter in disposin% o$ it 7)8 dis,iss t!e
case, eit!er .eca'se o$ &ac: o$ 5'risdiction or re$'sa& to ass',e 5'risdiction over t!e caseD 738 ass',e
5'risdiction over t!e case and app&# t!e interna& &a" o$ t!e $or',D or 7(8 ass',e 5'risdiction over t!e case
and ta:e into acco'nt or app&# t!e &a" o$ so,e ot!er State or States.-4 T!e co'rtQs po"er to !ear cases
and controversies is derived $ro, t!e Constit'tion and t!e &a"s. =!i&e it ,a# c!oose to reco%niJe &a"s o$
$orei%n nations, t!e co'rt is not &i,ited .# $orei%n soverei%n &a" s!ort o$ treaties or ot!er $or,a&
a%ree,ents, even in ,atters re%ardin% ri%!ts provided .# $orei%n soverei%ns.-0
Neit!er can t!e ot!er %ro'nd raised, $or', non conveniens,-; .e 'sed to deprive t!e tria& co'rt o$ its
5'risdiction !erein. First, it is not a proper .asis $or a ,otion to dis,iss .eca'se Section ), R'&e ); o$ t!e
R'&es o$ Co'rt does not inc&'de it as a %ro'nd.-- Second, "!et!er a s'it s!o'&d .e entertained or
dis,issed on t!e .asis o$ t!e said doctrine depends &ar%e&# 'pon t!e $acts o$ t!e partic'&ar case and is
addressed to t!e so'nd discretion o$ t!e tria& co'rt.-+ In t!is case, t!e RTC decided to ass',e
5'risdiction. T!ird, t!e propriet# o$ dis,issin% a case .ased on t!is princip&e re<'ires a $act'a&
deter,inationD !ence, t!is con$&icts princip&e is ,ore proper&# considered a ,atter o$ de$ense.-*
Accordin%&#, since t!e RTC is vested .# &a" "it! t!e po"er to entertain and !ear t!e civi& case $i&ed .#
respondent and t!e %ro'nds raised .# petitioners to assai& t!at 5'risdiction are inappropriate, t!e tria& and
appe&&ate co'rts correct&# denied t!e petitionersQ ,otion to dis,iss.
=HEREFORE, pre,ises considered, t!e Petition $or Revie" on Certiorari is @ENIE@.
IENANCIO FIGUEROA # CERIANTES,) Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent.
On C'&# +, )**4, an in$or,ation( $or rec:&ess i,pr'dence res'&tin% in !o,icide "as $i&ed a%ainst t!e
petitioner .e$ore t!e Re%iona& Tria& Co'rt 7RTC8 o$ 6'&acan, 6ranc! )+.4 T!e case "as doc:eted as
Cri,ina& Case No. 33(01M1*4.0 Tria& on t!e ,erits ens'ed and on A'%'st )*, )**+, t!e tria& co'rt
convicted t!e petitioner as c!ar%ed.; In !is appea& .e$ore t!e CA, t!e petitioner <'estioned, a,on%
ot!ers, $or t!e $irst ti,e, t!e tria& co'rtQs 5'risdiction.-
T!e appe&&ate co'rt, !o"ever, in t!e c!a&&en%ed decision, considered t!e petitioner to !ave active&#
participated in t!e tria& and to !ave .e&ated&# attac:ed t!e 5'risdiction o$ t!e RTCD t!'s, !e "as a&read#
estopped .# &ac!es $ro, assertin% t!e tria& co'rtQs &ac: o$ 5'risdiction. Findin% no ot!er %ro'nd to reverse
t!e tria& co'rtQs decision, t!e CA a$$ir,ed t!e petitionerQs conviction .'t ,odi$ied t!e pena&t# i,posed and
t!e da,a%es a"arded.+
@issatis$ied, t!e petitioner $i&ed t!e instant Petition $or Revie" on Certiorari raisin% t!e $o&&o"in% iss'es $or
o'r reso&'tion
A. @oes t!e $act t!at t!e petitioner $ai&ed to raise t!e iss'e o$ 5'risdiction d'rin% t!e tria& o$ t!is case, "!ic!
"as initiated and $i&ed .# t!e p'.&ic prosec'tor .e$ore t!e "ron% co'rt, constit'te &ac!es in re&ation to t!e
doctrine &aid do"n in Ti5a, v. Si.on%!ano#, not"it!standin% t!e $act t!at said iss'e "as i,,ediate&#
raised in petitionerQs appea& to t!e Honora.&e Co'rt o$ Appea&sR Converse&#, does t!e active participation
o$ t!e petitioner in t!e tria& o$ !is case, "!ic! is initiated and $i&ed not .# !i, .'t .# t!e p'.&ic prosec'tor,
a,o'nt to estoppe&Rcra&a"red
.. @oes t!e ad,ission o$ t!e petitioner t!at it is di$$ic'&t to i,,ediate&# stop a .'s "!i&e it is r'nnin% at 42
:i&o,eters per !o'r $or t!e p'rpose o$ avoidin% a person "!o 'ne9pected&# crossed t!e road, constit'te
eno'%! incri,inatin% evidence to "arrant !is conviction $or t!e cri,e c!ar%edRcra&a"red
c. Is t!e Honora.&e Co'rt o$ Appea&s 5'sti$ied in considerin% t!e p&ace o$ accident as $a&&in% "it!in Ite, 4 o$
Section (0 7.8 o$ t!e Land Transportation and Tra$$ic Code, and s'.se<'ent&# r'&in% t!at t!e speed &i,it
t!ereto is on&# 32 :i&o,eters per !o'r, "!en no evidence "!atsoever to t!at e$$ect "as ever presented .#
t!e prosec'tion d'rin% t!e tria& o$ t!is caseRcra&a"red
d. Is t!e Honora.&e Co'rt o$ Appea&s 5'sti$ied in convictin% t!e petitioner $or !o,icide t!ro'%! rec:&ess
i,pr'dence 7t!e &e%a&&# correct desi%nation is ?rec:&ess i,pr'dence res'&tin% to !o,icide?8 "it! vio&ation
o$ t!e Land Transportation and Tra$$ic Code "!en t!e prosec'tion did not prove t!is d'rin% t!e tria& and,
,ore i,portant&#, t!e in$or,ation $i&ed a%ainst t!e petitioner does not contain an a&&e%ation to t!at e$$ectR
cra&a"red
e. @oes t!e 'ncontroverted testi,on# o$ t!e de$ense "itness Leonardo Herna& t!at t!e victi,
'ne9pected&# crossed t!e road res'&tin% in !i, %ettin% !it .# t!e .'s driven .# t!e petitioner not eno'%!
evidence to ac<'it !i, o$ t!e cri,e c!ar%edR*
App&ied 'ni$or,&# is t!e $a,i&iar r'&e t!at t!e 5'risdiction o$ t!e co'rt to !ear and decide a case is con$erred
.# t!e &a" in $orce at t!e ti,e o$ t!e instit'tion o$ t!e action, 'n&ess s'c! stat'te provides $or a retroactive
app&ication t!ereo$.)2 In t!is case, at t!e ti,e t!e cri,ina& in$or,ation $or rec:&ess i,pr'dence res'&tin% in
!o,icide "it! vio&ation o$ t!e A'to,o.i&e La" 7no" Land Transportation and Tra$$ic Code8 "as $i&ed,
Section (3738 o$ 6atas Pa,.ansa 76.P.8 6&%. )3*)) !ad a&read# .een a,ended .# Rep'.&ic Act No.
-;*).)3 T!e said provision t!'s reads
Sec. (3. C'risdiction o$ Metropo&itan Tria& Co'rts, M'nicipa& Tria& Co'rts and M'nicipa& Circ'it Tria& Co'rts
in Cri,ina& Cases. E9cept in cases $a&&in% "it!in t!e e9c&'sive ori%ina& 5'risdiction o$ Re%iona& Tria& Co'rts
and t!e Sandi%an.a#an, t!e Metropo&itan Tria& Co'rts, M'nicipa& Tria& Co'rts, and M'nicipa& Circ'it Tria&
Co'rts s!a&& e9ercise
9 9 9
738 E9c&'sive ori%ina& 5'risdiction over a&& o$$enses p'nis!a.&e "it! i,prison,ent not e9ceedin% si9 7;8
#ears irrespective o$ t!e a,o'nt o$ $ine, and re%ard&ess o$ ot!er i,posa.&e accessor# or ot!er pena&ties,
inc&'din% t!e civi& &ia.i&it# arisin% $ro, s'c! o$$enses or predicated t!ereon, irrespective o$ :ind, nat're,
va&'e or a,o'nt t!ereo$ Provided, !o"ever, T!at in o$$enses invo&vin% da,a%e to propert# t!ro'%!
cri,ina& ne%&i%ence, t!e# s!a&& !ave e9c&'sive ori%ina& 5'risdiction t!ereo$.
As t!e i,posa.&e pena&t# $or t!e cri,e c!ar%ed !erein is prision correcciona& in its ,edi', and ,a9i,',
periods or i,prison,ent $or 3 #ears, 4 ,ont!s and ) da# to ; #ears,)( 5'risdiction to !ear and tr# t!e
sa,e is con$erred on t!e M'nicipa& Tria& Co'rts 7MTCs8. C&ear&#, t!ere$ore, t!e RTC o$ 6'&acan does not
!ave 5'risdiction over Cri,ina& Case No. 33(01M1*4.
=!i&e .ot! t!e appe&&ate co'rt and t!e So&icitor Genera& ac:no"&ed%e t!is $act, t!e# nevert!e&ess are o$
t!e position t!at t!e princip&e o$ estoppe& .# &ac!es !as a&read# prec&'ded t!e petitioner $ro, <'estionin%
t!e 5'risdiction o$ t!e RTC t!e tria& "ent on $or 4 #ears "it! t!e petitioner active&# participatin% t!erein and
"it!o't !i, ever raisin% t!e 5'risdictiona& in$ir,it#. T!e petitioner, $or !is part, co'nters t!at t!e &ac: o$
5'risdiction o$ a co'rt over t!e s'.5ect ,atter ,a# .e raised at an# ti,e even $or t!e $irst ti,e on appea&.
As 'nd'e de&a# is $'rt!er a.sent !erein, t!e princip&e o$ &ac!es "i&& not .e app&ica.&e.
To sett&e once and $or a&& t!is pro.&e, o$ 5'risdiction vis 1 X 1vis estoppe& .# &ac!es, "!ic! contin'o's&#
con$o'nds t!e .enc! and t!e .ar, "e s!a&& ana&#Je t!e vario's Co'rt decisions on t!e ,atter.
As ear&# as )*2), t!is Co'rt !as dec&ared t!at 'n&ess 5'risdiction !as .een con$erred .# so,e &e%is&ative
act, no co'rt or tri.'na& can act on a ,atter s'.,itted to it.)4 =e "ent on to state in U.S. v. @e La
Santa)0 t!at
It !as .een $re<'ent&# !e&d t!at a &ac: o$ 5'risdiction over t!e s'.5ect1,atter is $ata&, and s'.5ect to
o.5ection at an# sta%e o$ t!e proceedin%s, eit!er in t!e co'rt .e&o" or on appea& 7Enc#. o$ P&. M Pr., vo&.
)3, p. )+*, and &ar%e arra# o$ cases t!ere cited8, and indeed, "!ere t!e s'.5ect1,atter is not "it!in t!e
5'risdiction, t!e co'rt ,a# dis,iss t!e proceedin% e9 ,ero ,ot'. 74 I&&., )((D )*2 Ind., -*D C!ip,an v.
=ater.'r#, 0* Conn., 4*;.8
C'risdiction over t!e s'.5ect1,atter in a 5'dicia& proceedin% is con$erred .# t!e soverei%n a't!orit# "!ic!
or%aniJes t!e co'rtD it is %iven on&# .# &a" and in t!e ,anner prescri.ed .# &a" and an o.5ection .ased on
t!e &ac: o$ s'c! 5'risdiction can not .e "aived .# t!e parties. 9 9 9);
Later, in Peop&e v. Casiano,)- t!e Co'rt e9p&ained
4. T!e operation o$ t!e princip&e o$ estoppe& on t!e <'estion o$ 5'risdiction see,in%&# depends 'pon
"!et!er t!e &o"er co'rt act'a&&# !ad 5'risdiction or not. I$ it !ad no 5'risdiction, .'t t!e case "as tried and
decided 'pon t!e t!eor# t!at it !ad 5'risdiction, t!e parties are not .arred, on appea&, $ro, assai&in% s'c!
5'risdiction, $or t!e sa,e ?,'st e9ist as a ,atter o$ &a", and ,a# not .e con$erred .# consent o$ t!e
parties or .# estoppe&? 70 C.C.S., +;)1+;(8. Ho"ever, i$ t!e &o"er co'rt !ad 5'risdiction, and t!e case "as
!eard and decided 'pon a %iven t!eor#, s'c!, $or instance, as t!at t!e co'rt !ad no 5'risdiction, t!e part#
"!o ind'ced it to adopt s'c! t!eor# "i&& not .e per,itted, on appea&, to ass',e an inconsistent position
t!at t!e &o"er co'rt !ad 5'risdiction. Here, t!e princip&e o$ estoppe& app&ies. T!e r'&e t!at 5'risdiction is
con$erred .# &a", and does not depend 'pon t!e "i&& o$ t!e parties, !as no .earin% t!ereon. T!'s, Corp's
C'ris Sec'nd', sa#s
=!ere acc'sed !as sec'red a decision t!at t!e indict,ent is void, or !as .een %ranted an instr'ction
.ased on its de$ective c!aracter directin% t!e 5'r# to ac<'it, !e is estopped, "!en s'.se<'ent&# indicted,
to assert t!at t!e $or,er indict,ent "as va&id. In s'c! case, t!ere ,a# .e a ne" prosec'tion "!et!er t!e
indict,ent in t!e $or,er prosec'tion "as %ood or .ad. Si,i&ar&#, "!ere, a$ter t!e 5'r# "as i,pane&ed and
s"orn, t!e co'rt on acc'sedQs ,otion <'as!ed t!e in$or,ation on t!e erroneo's ass',ption t!at t!e co'rt
!ad no 5'risdiction, acc'sed cannot s'ccess$'&&# p&ead $or,er 5eopard# to a ne" in$or,ation. 9 9 9 733
C.C.S., sec. 303, pp. (++1(+*D ita&ics o'rs.8
=!ere acc'sed proc'red a prior conviction to .e set aside on t!e %ro'nd t!at t!e co'rt "as "it!o't
5'risdiction, !e is estopped s'.se<'ent&# to assert, in s'pport o$ a de$ense o$ previo's 5eopard#, t!at s'c!
co'rt !ad 5'risdiction.? 733 C.C.S. p. (-+.8)+
6't in PindaXW%an A%ric'&t'ra& Co., Inc. v. @ans,)* t!e Co'rt, in not s'stainin% t!e p&ea o$ &ac: o$
5'risdiction .# t!e p&ainti$$1appe&&ee t!erein, ,ade t!e $o&&o"in% o.servations
It is s'rprisin% "!# it is on&# no", a$ter t!e decision !as .een rendered, t!at t!e p&ainti$$1appe&&ee presents
t!e <'estion o$ t!is Co'rtQs 5'risdiction over t!e case. Rep'.&ic Act No. 3;)( "as enacted on A'%'st ),
)*0*. T!is case "as ar%'ed on Can'ar# 3*, )*;2. Not"it!standin% t!is $act, t!e 5'risdiction o$ t!is Co'rt
"as never i,p'%ned 'nti& t!e adverse decision o$ t!is Co'rt "as !anded do"n. T!e cond'ct o$ co'nse&
&eads 's to .e&ieve t!at t!e# ,'st !ave a&"a#s .een o$ t!e .e&ie$ t!at not"it!standin% said enact,ent o$
Rep'.&ic Act 3;)( t!is Co'rt !as 5'risdiction o$ t!e case, s'c! cond'ct .ein% .orn o't o$ a conviction t!at
t!e act'a& rea& va&'e o$ t!e properties in <'estion act'a&&# e9ceeds t!e 5'risdictiona& a,o'nt o$ t!is Co'rt
7over P322,2228. O'r ,in'te reso&'tion in G.R. No. L1)22*;, H#son Tan, et a&. v. Fi&ipinas Co,paXWa de
Se%'ros, et a&., o$ Marc! 3(, )*0;, a para&&e& case, is app&ica.&e to t!e cond'ct o$ p&ainti$$1appe&&ee in t!is
case, t!'s
9 9 9 t!at an appe&&ant "!o $i&es !is .rie$ and s'.,its !is case to t!e Co'rt o$ Appea&s $or decision, "it!o't
<'estionin% t!e &atterQs 5'risdiction 'nti& decision is rendered t!erein, s!o'&d .e considered as !avin%
vo&'ntari&# "aived so ,'c! o$ !is c&ai, as "o'&d e9ceed t!e 5'risdiction o$ said Appe&&ate Co'rtD $or t!e
reason t!at a contrar# r'&e "o'&d enco'ra%e t!e 'ndesira.&e practice o$ appe&&ants s'.,ittin% t!eir cases
$or decision to t!e Co'rt o$ Appea&s in e9pectation o$ $avora.&e 5'd%,ent, .'t "it! intent o$ attac:in% its
5'risdiction s!o'&d t!e decision .e 'n$avora.&e 9 9 932
T!en ca,e o'r r'&in% in Ti5a, v. Si.on%!ano#3) t!at a part# ,a# .e .arred .# &ac!es $ro, invo:in% &ac:
o$ 5'risdiction at a &ate !o'r $or t!e p'rpose o$ ann'&&in% ever#t!in% done in t!e case "it! t!e active
participation o$ said part# invo:in% t!e p&ea. =e e9po'nded, t!'s
A part# ,a# .e estopped or .arred $ro, raisin% a <'estion in di$$erent "a#s and $or di$$erent reasons.
T!'s, "e spea: o$ estoppe& in pais, o$ estoppe& .# deed or .# record, and o$ estoppe& .# &ac!es.
Lac!es, in a %enera& sense, is $ai&'re or ne%&ect, $or an 'nreasona.&e and 'ne9p&ained &en%t! o$ ti,e, to
do t!at "!ic!, .# e9ercisin% d'e di&i%ence, co'&d or s!o'&d !ave .een done ear&ierD it is ne%&i%ence or
o,ission to assert a ri%!t "it!in a reasona.&e ti,e, "arrantin% a pres',ption t!at t!e part# entit&ed to
assert it eit!er !as a.andoned it or dec&ined to assert it.
T!e doctrine o$ &ac!es or o$ ?sta&e de,ands? is .ased 'pon %ro'nds o$ p'.&ic po&ic# "!ic! re<'ires, $or t!e
peace o$ societ#, t!e disco'ra%e,ent o$ sta&e c&ai,s and, 'n&i:e t!e stat'te o$ &i,itations, is not a ,ere
<'estion o$ ti,e .'t is principa&&# a <'estion o$ t!e ine<'it# or 'n$airness o$ per,ittin% a ri%!t or c&ai, to
.e en$orced or asserted.
It !as .een !e&d t!at a part# cannot invo:e t!e 5'risdiction o$ a co'rt to sec're a$$ir,ative re&ie$ a%ainst !is
opponent and, a$ter o.tainin% or $ai&in% to o.tain s'c! re&ie$, rep'diate or <'estion t!at sa,e 5'risdiction
7@ean v. @ean, )(; Or. ;*4, +; A.L.R. -*8. In t!e case 5'st cited, .# "a# o$ e9p&ainin% t!e r'&e, it "as
$'rt!er said t!at t!e <'estion "!et!er t!e co'rt !ad 5'risdiction eit!er o$ t!e s'.5ect ,atter o$ t!e action or
o$ t!e parties "as not i,portant in s'c! cases .eca'se t!e part# is .arred $ro, s'c! cond'ct not .eca'se
t!e 5'd%,ent or order o$ t!e co'rt is va&id and conc&'sive as an ad5'dication, .'t $or t!e reason t!at s'c! a
practice cannot .e to&erated o.vio's&# $or reasons o$ p'.&ic po&ic#.
F'rt!er,ore, it !as a&so .een !e&d t!at a$ter vo&'ntari&# s'.,ittin% a ca'se and enco'nterin% an adverse
decision on t!e ,erits, it is too &ate $or t!e &oser to <'estion t!e 5'risdiction or po"er o$ t!e co'rt 7Pease v.
Rat!.'n1Cones etc., 34( U.S. 3-(, ;) L. Ed. -)0, (- S.Ct. 3+(D St. Lo'is etc. v. Mc6ride, )4) U.S. )3-,
(0 L. Ed. ;0*8. And in Litt&eton v. 6'r%ess, ); =#o. 0+, t!e Co'rt said t!at it is not ri%!t $or a part# "!o
!as a$$ir,ed and invo:ed t!e 5'risdiction o$ a co'rt in a partic'&ar ,atter to sec're an a$$ir,ative re&ie$, to
a$ter"ards den# t!at sa,e 5'risdiction to escape a pena&t#.
Upon t!is sa,e princip&e is "!at =e said in t!e t!ree cases ,entioned in t!e reso&'tion o$ t!e Co'rt o$
Appea&s o$ Ma# 32, )*;( 7s'pra8 to t!e e$$ect t!at "e $ro"n 'pon t!e ?'ndesira.&e practice? o$ a part#
s'.,ittin% !is case $or decision and t!en acceptin% t!e 5'd%,ent, on&# i$ $avora.&e, and attac:in% it $or
&ac: o$ 5'risdiction, "!en adverse as "e&& as in PindaXW%an etc. v. @ans et a&., G.R. L1)40*), Septe,.er
3;, )*;3D Monte&i.ano et a&. v. 6aco&od1M'rcia Mi&&in% Co., Inc., G.R. L1)02*3D Bo'n% Men La.or Union
etc. v. T!e Co'rt o$ Ind'stria& Re&ations et a&., G.R. L132(2-, Fe.. 3;, )*;0, and Me5ia v. L'cas, )22 P!i&.
p. 3--.
T!e $acts o$ t!is case s!o" t!at $ro, t!e ti,e t!e S'ret# .eca,e a <'asi1part# on C'&# (), )*4+, it co'&d
!ave raised t!e <'estion o$ t!e &ac: o$ 5'risdiction o$ t!e Co'rt o$ First Instance o$ Ce.' to ta:e
co%niJance o$ t!e present action .# reason o$ t!e s', o$ ,one# invo&ved "!ic!, accordin% to t!e &a" t!en
in $orce, "as "it!in t!e ori%ina& e9c&'sive 5'risdiction o$ in$erior co'rts. It $ai&ed to do so. Instead, at severa&
sta%es o$ t!e proceedin%s in t!e co'rt a <'o, as "e&& as in t!e Co'rt o$ Appea&s, it invo:ed t!e 5'risdiction
o$ said co'rts to o.tain a$$ir,ative re&ie$ and s'.,itted its case $or a $ina& ad5'dication on t!e ,erits. It "as
on&# a$ter an adverse decision "as rendered .# t!e Co'rt o$ Appea&s t!at it $ina&&# "o:e 'p to raise t!e
<'estion o$ 5'risdiction. =ere "e to sanction s'c! cond'ct on its part, =e "o'&d in e$$ect .e dec&arin% as
'se&ess a&& t!e proceedin%s !ad in t!e present case since it "as co,,enced on C'&# )*, )*4+ and co,pe&
t!e 5'd%,ent creditors to %o 'p t!eir Ca&var# once ,ore. T!e ine<'it# and 'n$airness o$ t!is is not on&#
patent .'t revo&tin%.33
For <'ite a ti,e since "e ,ade t!is prono'nce,ent in Si.on%!ano#, co'rts and tri.'na&s, in reso&vin%
iss'es t!at invo&ve t!e .e&ated invocation o$ &ac: o$ 5'risdiction, !ave app&ied t!e princip&e o$ estoppe& .#
&ac!es. T!'s, in Ca&i,&i, v. Ra,ireJ,3( "e pointed o't t!at Si.on%!ano# "as deve&opin% into a %enera&
r'&e rat!er t!an t!e e9ception
A r'&e t!at !ad .een sett&ed .# 'n<'estioned acceptance and 'p!e&d in decisions so n',ero's to cite is
t!at t!e 5'risdiction o$ a co'rt over t!e s'.5ect1,atter o$ t!e action is a ,atter o$ &a" and ,a# not .e
con$erred .# consent or a%ree,ent o$ t!e parties. T!e &ac: o$ 5'risdiction o$ a co'rt ,a# .e raised at an#
sta%e o$ t!e proceedin%s, even on appea&. T!is doctrine !as .een <'a&i$ied .# recent prono'nce,ents
"!ic! ste,,ed principa&&# $ro, t!e r'&in% in t!e cited case o$ Si.on%!ano#. It is to .e re%retted, !o"ever,
t!at t!e !o&din% in said case !ad .een app&ied to sit'ations "!ic! "ere o.vio's&# not conte,p&ated
t!erein. T!e e9ceptiona& circ',stance invo&ved in Si.on%!ano# "!ic! 5'sti$ied t!e depart're $ro, t!e
accepted concept o$ non1"aiva.i&it# o$ o.5ection to 5'risdiction !as .een i%nored and, instead a .&an:et
doctrine !ad .een repeated&# 'p!e&d t!at rendered t!e s'pposed r'&in% in Si.on%!ano# not as t!e
e9ception, .'t rat!er t!e %enera& r'&e, virt'a&&# overt!ro"in% a&to%et!er t!e ti,e1!onored princip&e t!at t!e
iss'e o$ 5'risdiction is not &ost .# "aiver or .# estoppe&.
In Si.on%!ano#, t!e de$ense o$ &ac: o$ 5'risdiction o$ t!e co'rt t!at rendered t!e <'estioned r'&in% "as
!e&d to .e .arred .# estoppe& .# &ac!es. It "as r'&ed t!at t!e &ac: o$ 5'risdiction !avin% .een raised $or t!e
$irst ti,e in a ,otion to dis,iss $i&ed a&,ost $i$teen 7)08 #ears a$ter t!e <'estioned r'&in% !ad .een
rendered, s'c! a p&ea ,a# no &on%er .e raised $or .ein% .arred .# &ac!es. As de$ined in said case, &ac!es
is ?$ai&'re or ne%&ect, $or an 'nreasona.&e and 'ne9p&ained &en%t! o$ ti,e, to do t!at "!ic!, .# e9ercisin%
d'e di&i%ence, co'&d or s!o'&d !ave .een done ear&ierD it is ne%&i%ence or o,ission to assert a ri%!t "it!in
a reasona.&e ti,e, "arrantin% a pres',ption t!at t!e part# entit&ed to assert !as a.andoned it or dec&ined
to assert it.34
In Ca&i,&i,, despite t!e $act t!at t!e one "!o .ene$ited $ro, t!e p&ea o$ &ac: o$ 5'risdiction "as t!e one
"!o invo:ed t!e co'rtQs 5'risdiction, and "!o &ater o.tained an adverse 5'd%,ent t!erein, "e re$'sed to
app&# t!e r'&in% in Si.on%!ano#. T!e Co'rt accorded s'pre,ac# to t!e ti,e1!onored princip&e t!at t!e
iss'e o$ 5'risdiction is not &ost .# "aiver or .# estoppe&.
Bet, in s'.se<'ent cases decided a$ter Ca&i,&i,, "!ic! .# s!eer vo&',e are too p&enti$'& to ,ention, t!e
Si.on%!ano# doctrine, as $oreto&d in Ca&i,&i,, .eca,e t!e r'&e rat!er t!an t!e e9ception. As s'c!, in
So&iven v. Fast$or,s P!i&ippines, Inc.,30 t!e Co'rt r'&ed
=!i&e it is tr'e t!at 5'risdiction ,a# .e raised at an# ti,e, ?t!is r'&e pres'pposes t!at estoppe& !as not
s'pervened.? In t!e instant case, respondent active&# participated in a&& sta%es o$ t!e proceedin%s .e$ore
t!e tria& co'rt and invo:ed its a't!orit# .# as:in% $or an a$$ir,ative re&ie$. C&ear&#, respondent is estopped
$ro, c!a&&en%in% t!e tria& co'rtQs 5'risdiction, especia&&# "!en an adverse 5'd%,ent !as .een rendered. In
PNOC S!ippin% and Transport Corporation v. Co'rt o$ Appea&s, "e !e&d
Moreover, "e note t!at petitioner did not <'estion at a&& t!e 5'risdiction o$ t!e &o"er co'rt 9 9 9 in its
ans"ers to .ot! t!e a,ended co,p&aint and t!e second a,ended co,p&aint. It did so on&# in its ,otion
$or reconsideration o$ t!e decision o$ t!e &o"er co'rt a$ter it !ad received an adverse decision. As t!is
Co'rt !e&d in Pantranco Nort! E9press, Inc. v. Co'rt o$ Appea&s 7G.R. No. )20)+2, C'&# 0, )**(, 334
SCRA 4--, 4*)8, participation in a&& sta%es o$ t!e case .e$ore t!e tria& co'rt, t!at inc&'ded invo:in% its
a't!orit# in as:in% $or a$$ir,ative re&ie$, e$$ective&# .arred petitioner .# estoppe& $ro, c!a&&en%in% t!e
co'rtQs 5'risdiction. Nota.&#, $ro, t!e ti,e it $i&ed its ans"er to t!e second a,ended co,p&aint on Apri& );,
)*+0, petitioner did not <'estion t!e &o"er co'rtQs 5'risdiction. It "as on&# on @ece,.er 3*, )*+* "!en it
$i&ed its ,otion $or reconsideration o$ t!e &o"er co'rtQs decision t!at petitioner raised t!e <'estion o$ t!e
&o"er co'rtQs &ac: o$ 5'risdiction. Petitioner t!'s $orec&osed its ri%!t to raise t!e iss'e o$ 5'risdiction .# its
o"n inaction. 7ita&ics o'rs8
Si,i&ar&#, in t!e s'.se<'ent case o$ Sta. L'cia Rea&t# and @eve&op,ent, Inc. v. Ca.ri%as, "e r'&ed
In t!e case at .ar, it "as $o'nd .# t!e tria& co'rt in its (2 Septe,.er )**; decision in LCR Case No. A1
;2);)7*(8 t!at private respondents 7"!o $i&ed t!e petition $or reconstit'tion o$ tit&es8 $ai&ed to co,p&# "it!
.ot! sections )3 and )( o$ RA 3; and t!ere$ore, it !ad no 5'risdiction over t!e s'.5ect ,atter o$ t!e case.
Ho"ever, private respondents never <'estioned t!e tria& co'rtQs 5'risdiction over its petition $or
reconstit'tion t!ro'%!o't t!e d'ration o$ LCR Case No. A1;2);)7*(8. On t!e contrar#, private
respondents active&# participated in t!e reconstit'tion proceedin%s .# $i&in% p&eadin%s and presentin% its
evidence. T!e# invo:ed t!e tria& co'rtQs 5'risdiction in order to o.tain a$$ir,ative re&ie$ 1 t!e reconstit'tion o$
t!eir tit&es. Private respondents !ave t!'s $orec&osed t!eir ri%!t to raise t!e iss'e o$ 5'risdiction .# t!eir
o"n actions.
T!e Co'rt !as constant&# 'p!e&d t!e doctrine t!at "!i&e 5'risdiction ,a# .e assai&ed at an# sta%e, a
&iti%antQs participation in a&& sta%es o$ t!e case .e$ore t!e tria& co'rt, inc&'din% t!e invocation o$ its a't!orit#
in as:in% $or a$$ir,ative re&ie$, .ars s'c! part# $ro, c!a&&en%in% t!e co'rtQs 5'risdiction 7PNOC S!ippin%
and Transport Corporation v. Co'rt o$ Appea&s, 3*- SCRA 423 E)**+F8. A part# cannot invo:e t!e
5'risdiction o$ a co'rt to sec're a$$ir,ative re&ie$ a%ainst !is opponent and a$ter o.tainin% or $ai&in% to
o.tain s'c! re&ie$, rep'diate or <'estion t!at sa,e 5'risdiction 7Asset PrivatiJation Tr'st v. Co'rt o$
Appea&s, (22 SCRA 0-* E)**+FD Province o$ 6'&acan v. Co'rt o$ Appea&s, 3** SCRA 443 E)**+F8. T!e
Co'rt $ro"ns 'pon t!e 'ndesira.&e practice o$ a part# participatin% in t!e proceedin%s and s'.,ittin% !is
case $or decision and t!en acceptin% 5'd%,ent, on&# i$ $avora.&e, and attac:in% it $or &ac: o$ 5'risdiction,
"!en adverse 7Prod'cers 6an: o$ t!e P!i&ippines v. NLRC, 3*+ SCRA 0)- E)**+F, citin% I&ocos S'r
E&ectric Cooperative, Inc. v. NLRC, 34) SCRA (; E)**0F8. 7ita&ics o'rs83;
Note"ort!#, !o"ever, is t!at, in t!e 3220 case o$ Metro,edia Ti,es Corporation v. Pastorin,3- "!ere t!e
iss'e o$ &ac: o$ 5'risdiction "as raised on&# in t!e Nationa& La.or Re&ations Co,,ission 7NLRC8 on
appea&, "e stated, a$ter e9a,inin% t!e doctrines o$ 5'risdiction vis 1 X 1vis estoppe&, t!at t!e r'&in% in
Si.on%!ano# stands as an e9ception, rat!er t!an t!e %enera& r'&e. Metro,edia, t!'s, "as not estopped
$ro, assai&in% t!e 5'risdiction o$ t!e &a.or ar.iter .e$ore t!e NLRC on appea&.3+ c!anro.&es virt'a& &a"
&i.rar#
Later, in France& Rea&t# Corporation v. S#cip,3* t!e Co'rt c&ari$ied t!at
Petitioner ar%'es t!at t!e CAQs a$$ir,ation o$ t!e tria& co'rtQs dis,issa& o$ its case "as erroneo's,
considerin% t!at a $'&&1.&o"n tria& !ad a&read# .een cond'cted. In e$$ect, it contends t!at &ac: o$ 5'risdiction
co'&d no &on%er .e 'sed as a %ro'nd $or dis,issa& a$ter tria& !ad ens'ed and ended.
T!e a.ove ar%',ent is anc!ored on estoppe& .# &ac!es, "!ic! !as .een 'sed <'ite s'ccess$'&&# in a
n',.er o$ cases to t!"art dis,issa&s .ased on &ac: o$ 5'risdiction. Ti5a, v. Si.on%!ano#, in "!ic! t!is
doctrine "as espo'sed, !e&d t!at a part# ,a# .e .arred $ro, <'estionin% a co'rtQs 5'risdiction a$ter .ein%
invo:ed to sec're a$$ir,ative re&ie$ a%ainst its opponent. In $ine, &ac!es prevents t!e iss'e o$ &ac: o$
5'risdiction $ro, .ein% raised $or t!e $irst ti,e on appea& .# a &iti%ant "!ose p'rpose is to ann'& ever#t!in%
done in a tria& in "!ic! it !as active&# participated.
Lac!es is de$ined as t!e ?$ai&'re or ne%&ect $or an 'nreasona.&e and 'ne9p&ained &en%t! o$ ti,e, to do t!at
"!ic!, .# e9ercisin% d'e di&i%ence, co'&d or s!o'&d !ave .een done ear&ierD it is ne%&i%ence or o,ission to
assert a ri%!t "it!in a reasona.&e ti,e, "arrantin% a pres',ption t!at t!e part# entit&ed to assert it eit!er
!as a.andoned it or dec&ined to assert it.?
T!e r'&in% in Si.on%!ano# on t!e ,atter o$ 5'risdiction is, !o"ever, t!e e9ception rat!er t!an t!e
r'&e.c!anro.&es virt'a& &a" &i.rar# Estoppe& .# &ac!es ,a# .e invo:ed to .ar t!e iss'e o$ &ac: o$ 5'risdiction
on&# in cases in "!ic! t!e $act'a& ,i&ie' is ana&o%o's to t!at in t!e cited case. In s'c! controversies,
&ac!es s!o'&d .e c&ear&# presentD t!at is, &ac: o$ 5'risdiction ,'st !ave .een raised so .e&ated&# as to
"arrant t!e pres',ption t!at t!e part# entit&ed to assert it !ad a.andoned or dec&ined to assert it. T!at
Si.on%!ano# app&ies on&# to e9ceptiona& circ',stances is c&ari$ied in Ca&i,&i, v. Ra,ireJ, "!ic! "e
<'ote
A r'&e t!at !ad .een sett&ed .# 'n<'estioned acceptance and 'p!e&d in decisions so n',ero's to cite is
t!at t!e 5'risdiction o$ a co'rt over t!e s'.5ect1,atter o$ t!e action is a ,atter o$ &a" and ,a# not .e
con$erred .# consent or a%ree,ent o$ t!e parties. T!e &ac: o$ 5'risdiction o$ a co'rt ,a# .e raised at an#
sta%e o$ t!e proceedin%s, even on appea&. T!is doctrine !as .een <'a&i$ied .# recent prono'nce,ents
"!ic! ste,,ed principa&&# $ro, t!e r'&in% in t!e cited case o$ Si.on%!ano#. It is to .e re%retted, !o"ever,
t!at t!e !o&din% in said case !ad .een app&ied to sit'ations "!ic! "ere o.vio's&# not conte,p&ated
t!erein. T!e e9ceptiona& circ',stance invo&ved in Si.on%!ano# "!ic! 5'sti$ied t!e depart're $ro, t!e
accepted concept o$ non1"aiva.i&it# o$ o.5ection to 5'risdiction !as .een i%nored and, instead a .&an:et
doctrine !ad .een repeated&# 'p!e&d t!at rendered t!e s'pposed r'&in% in Si.on%!ano# not as t!e
e9ception, .'t rat!er t!e %enera& r'&e, virt'a&&# overt!ro"in% a&to%et!er t!e ti,e1!onored princip&e t!at t!e
iss'e o$ 5'risdiction is not &ost .# "aiver or .# estoppe&.
Indeed, t!e %enera& r'&e re,ains a co'rtQs &ac: o$ 5'risdiction ,a# .e raised at an# sta%e o$ t!e
proceedin%s, even on appea&. T!e reason is t!at 5'risdiction is con$erred .# &a", and &ac: o$ it a$$ects t!e
ver# a't!orit# o$ t!e co'rt to ta:e co%niJance o$ and to render 5'd%,ent on t!e action. Moreover,
5'risdiction is deter,ined .# t!e aver,ents o$ t!e co,p&aint, not .# t!e de$enses contained in t!e
ans"er.(2
A&so, in Man%a&ia% v. Cat'.i%1Pastora&,() even i$ t!e p&eader o$ &ac: o$ 5'risdiction active&# too: part in t!e
tria& proceedin%s .# presentin% a "itness to see: e9oneration, t!e Co'rt, reiteratin% t!e doctrine in
Ca&i,&i,, said
Private respondent ar%'es t!at t!e de$ense o$ &ac: o$ 5'risdiction ,a# .e "aived .# estoppe& t!ro'%!
active participation in t!e tria&. S'c!, !o"ever, is not t!e %enera& r'&e .'t an e9ception, .est c!aracteriJed
.# t!e pec'&iar circ',stances in Ti5a, v. Si.on%!ano#. In Si.on%!ano#, t!e part# invo:in% &ac: o$
5'risdiction did so on&# a$ter $i$teen #ears and at a sta%e "!en t!e proceedin%s !ad a&read# .een e&evated
to t!e CA. Si.on%!ano# is an e9ceptiona& case .eca'se o$ t!e presence o$ &ac!es, "!ic! "as de$ined
t!erein as $ai&'re or ne%&ect $or an 'nreasona.&e and 'ne9p&ained &en%t! o$ ti,e to do t!at "!ic!, .#
e9ercisin% d'e di&i%ence, co'&d or s!o'&d !ave .een done ear&ierD it is t!e ne%&i%ence or o,ission to assert
a ri%!t "it!in a reasona.&e ti,e, "arrantin% a pres',ption t!at t!e part# entit&ed to assert !as a.andoned
it or dec&ined to assert it.(3
And in t!e ,ore recent Re%a&ado v. Go,(( t!e Co'rt a%ain e,p!asiJed t!at &ac!es s!o'&d .e c&ear&#
present $or t!e Si.on%!ano# doctrine to .e app&ica.&e, t!'s
Lac!es is de$ined as t!e ?$ai&'re or ne%&ect $or an 'nreasona.&e and 'ne9p&ained &en%t! o$ ti,e, to do t!at
"!ic!, .# e9ercisin% d'e di&i%ence, co'&d or s!o'&d !ave .een done ear&ier, it is ne%&i%ence or o,ission to
assert a ri%!t "it!in a reasona.&e &en%t! o$ ti,e, "arrantin% a pres',ption t!at t!e part# entit&ed to assert
it eit!er !as a.andoned it or dec&ined to assert it.?
T!e r'&in% in Peop&e v. Re%a&ario t!at "as .ased on t!e &and,ar: doctrine en'nciated in Ti5a, v.
Si.on%!ano# on t!e ,atter o$ 5'risdiction .# estoppe& is t!e e9ception rat!er t!an t!e r'&e. Estoppe& .#
&ac!es ,a# .e invo:ed to .ar t!e iss'e o$ &ac: o$ 5'risdiction on&# in cases in "!ic! t!e $act'a& ,i&ie' is
ana&o%o's to t!at in t!e cited case. In s'c! controversies, &ac!es s!o'&d !ave .een c&ear&# presentD t!at
is, &ac: o$ 5'risdiction ,'st !ave .een raised so .e&ated&# as to "arrant t!e pres',ption t!at t!e part#
entit&ed to assert it !ad a.andoned or dec&ined to assert it.
In Si.on%!ano#, t!e de$ense o$ &ac: o$ 5'risdiction "as raised $or t!e $irst ti,e in a ,otion to dis,iss $i&ed
.# t!e S'ret# a&,ost )0 #ears a$ter t!e <'estioned r'&in% !ad .een rendered. At severa& sta%es o$ t!e
proceedin%s, in t!e co'rt a <'o as "e&& as in t!e Co'rt o$ Appea&s, t!e S'ret# invo:ed t!e 5'risdiction o$
t!e said co'rts to o.tain a$$ir,ative re&ie$ and s'.,itted its case $or $ina& ad5'dication on t!e ,erits. It "as
on&# "!en t!e adverse decision "as rendered .# t!e Co'rt o$ Appea&s t!at it $ina&&# "o:e 'p to raise t!e
<'estion o$ 5'risdiction.
C&ear&#, t!e $act'a& settin%s attendant in Si.on%!ano# are not present in t!e case at .ar. Petitioner Att#.
Re%a&ado, a$ter t!e receipt o$ t!e Co'rt o$ Appea&s reso&'tion $indin% !er %'i&t# o$ conte,pt, pro,pt&# $i&ed
a Motion $or Reconsideration assai&in% t!e said co'rtQs 5'risdiction .ased on proced'ra& in$ir,it# in
initiatin% t!e action. Her co,p&iance "it! t!e appe&&ate co'rtQs directive to s!o" ca'se "!# s!e s!o'&d not
.e cited $or conte,pt and $i&in% a sin%&e piece o$ p&eadin% to t!at e$$ect co'&d not .e considered as an
active participation in t!e 5'dicia& proceedin%s so as to ta:e t!e case "it!in t!e ,i&ie' o$ Si.on%!ano#.
Rat!er, it is t!e nat'ra& $ear to diso.e# t!e ,andate o$ t!e co'rt t!at co'&d &ead to dire conse<'ences t!at
i,pe&&ed !er to co,p&#.(4
T!e Co'rt, t!'s, "avered on "!en to app&# t!e e9ceptiona& circ',stance in Si.on%!ano# and on "!en to
app&# t!e %enera& r'&e en'nciated as ear&# as in @e La Santa and e9po'nded at &en%t! in Ca&i,&i,. T!e
%enera& r'&e s!o'&d, !o"ever, .e, as it !as a&"a#s .een, t!at t!e iss'e o$ 5'risdiction ,a# .e raised at an#
sta%e o$ t!e proceedin%s, even on appea&, and is not &ost .# "aiver or .# estoppe&. Estoppe& .# &ac!es, to
.ar a &iti%ant $ro, assertin% t!e co'rtQs a.sence or &ac: o$ 5'risdiction, on&# s'pervenes in e9ceptiona&
cases si,i&ar to t!e $act'a& ,i&ie' o$ Ti5a, v. Si.on%!ano#. Indeed, t!e $act t!at a person atte,pts to
invo:e 'na't!oriJed 5'risdiction o$ a co'rt does not estop !i, $ro, t!erea$ter c!a&&en%in% its 5'risdiction
over t!e s'.5ect ,atter, since s'c! 5'risdiction ,'st arise .# &a" and not .# ,ere consent o$ t!e parties.
T!is is especia&&# tr'e "!ere t!e person see:in% to invo:e 'na't!oriJed 5'risdiction o$ t!e co'rt does not
t!ere.# sec're an# advanta%e or t!e adverse part# does not s'$$er an# !ar,.(0
App&#in% t!e said doctrine to t!e instant case, t!e petitioner is in no "a# estopped .# &ac!es in assai&in%
t!e 5'risdiction o$ t!e RTC, considerin% t!at !e raised t!e &ac: t!ereo$ in !is appea& .e$ore t!e appe&&ate
co'rt. At t!at ti,e, no considera.&e period !ad #et e&apsed $or &ac!es to attac!. Tr'e, de&a# a&one, t!o'%!
'nreasona.&e, "i&& not s'stain t!e de$ense o$ ?estoppe& .# &ac!es? 'n&ess it $'rt!er appears t!at t!e part#,
:no"in% !is ri%!ts, !as not so'%!t to en$orce t!e, 'nti& t!e condition o$ t!e part# p&eadin% &ac!es !as in
%ood $ait! .eco,e so c!an%ed t!at !e cannot .e restored to !is $or,er state, i$ t!e ri%!ts .e t!en
en$orced, d'e to &oss o$ evidence, c!an%e o$ tit&e, intervention o$ e<'ities, and ot!er ca'ses.(; In app&#in%
t!e princip&e o$ estoppe& .# &ac!es in t!e e9ceptiona& case o$ Si.on%!ano#, t!e Co'rt t!erein considered
t!e patent and revo&tin% ine<'it# and 'n$airness o$ !avin% t!e 5'd%,ent creditors %o 'p t!eir Ca&var# once
,ore a$ter ,ore or &ess )0 #ears.(- T!e sa,e, !o"ever, does not o.tain in t!e instant case.
=e note at t!is point t!at estoppe&, .ein% in t!e nat're o$ a $or$eit're, is not $avored .# &a". It is to .e
app&ied rare&# on&# $ro, necessit#, and on&# in e9traordinar# circ',stances. T!e doctrine ,'st .e app&ied
"it! %reat care and t!e e<'it# ,'st .e stron% in its $avor.(+ =!en ,isapp&ied, t!e doctrine o$ estoppe&
,a# .e a ,ost e$$ective "eapon $or t!e acco,p&is!,ent o$ in5'stice.(* Moreover, a 5'd%,ent rendered
"it!o't 5'risdiction over t!e s'.5ect ,atter is void.42 Hence, t!e Revised R'&es o$ Co'rt provides $or
re,edies in attac:in% 5'd%,ents rendered .# co'rts or tri.'na&s t!at !ave no 5'risdiction over t!e
concerned cases. No &ac!es "i&& even attac! "!en t!e 5'd%,ent is n'&& and void $or "ant o$ 5'risdiction.4)
As "e !ave stated in Heirs o$ C'&ian @e&a Cr'J and Leonora Ta&aro v. Heirs o$ A&.erto Cr'J,43
It is a9io,atic t!at t!e 5'risdiction o$ a tri.'na&, inc&'din% a <'asi15'dicia& o$$icer or %overn,ent a%enc#,
over t!e nat're and s'.5ect ,atter o$ a petition or co,p&aint is deter,ined .# t!e ,ateria& a&&e%ations
t!erein and t!e c!aracter o$ t!e re&ie$ pra#ed $or, irrespective o$ "!et!er t!e petitioner or co,p&ainant is
entit&ed to an# or a&& s'c! re&ie$s. C'risdiction over t!e nat're and s'.5ect ,atter o$ an action is con$erred
.# t!e Constit'tion and t!e &a", and not .# t!e consent or "aiver o$ t!e parties "!ere t!e co'rt ot!er"ise
"o'&d !ave no 5'risdiction over t!e nat're or s'.5ect ,atter o$ t!e action. Nor can it .e ac<'ired t!ro'%!,
or "aived .#, an# act or o,ission o$ t!e parties. Moreover, estoppe& does not app&# to con$er 5'risdiction
to a tri.'na& t!at !as none over t!e ca'se o$ action. 9 9 9
Indeed, t!e 5'risdiction o$ t!e co'rt or tri.'na& is not a$$ected .# t!e de$enses or t!eories set 'p .# t!e
de$endant or respondent in !is ans"er or ,otion to dis,iss. C'risdiction s!o'&d .e deter,ined .#
considerin% not on&# t!e stat's or t!e re&ations!ip o$ t!e parties .'t a&so t!e nat're o$ t!e iss'es or
<'estions t!at is t!e s'.5ect o$ t!e controvers#. 9 9 9 9 T!e proceedin%s .e$ore a co'rt or tri.'na& "it!o't
5'risdiction, inc&'din% its decision, are n'&& and void, !ence, s'scepti.&e to direct and co&&atera& attac:s.4(
=it! t!e a.ove considerations, "e $ind it 'nnecessar# to reso&ve t!e ot!er iss'es raised in t!e petition.
=HEREFORE, pre,ises considered, t!e Petition $or Revie" on Certiorari is GRANTE@. Cri,ina& Case
No. 33(01M1*4 is !ere.# @ISMISSE@ "it!o't pre5'dice.
SO OR@ERE@.
ATTB. RESTITUTO G. CU@IAMAT, ERLIN@A P. CU@IAMATE)F AN@ CORAcON @. CU@IAMAT,
PETITIONERS, IS. 6ATANGAS SAIINGS AN@ LOAN 6ANN, INC., AN@ THE REGISTER OF @EE@S,
NASUG6U, 6ATANGAS, RESPON@ENTS.
Petitioner Att#. Restit'to C'dia,at and !is .rot!er Per$ecto "ere t!e re%istered co1o"ners o$ a (32
s<'are ,eter parce& o$ &and 7t!e propert#8 in 6a&a#an, 6atan%as, covered .# TCT No. T1(-++* o$ t!e
Re%ister o$ @eeds o$ Nas'%.', 6atan%as. Restit'to, "!o resided in OJa,iJ Cit# "it! !is "i$e, entr'sted
t!e c'stod# o$ t!e tit&e to "!o "as residin% in 6a&a#an.
In )*-*, Per$ecto, "it!o't t!e :no"&ed%e and consent o$ Restit'to, o.tained a &oan $ro, respondent
6atan%as Savin%s and Loan 6an:, Inc. 7t!e .an:8. To sec're t!e pa#,ent o$ t!e &oan, Per$ecto
,ort%a%ed t!e propert# $or t!e p'rpose o$ "!ic! !e presented a Specia& Po"er o$ Attorne# 7SPA8
p'rported&# e9ec'ted .# Restit'to, "it! t!e ,arita& consent o$ !is "i$e1!erein co1petitioner Er&inda
C'dia,at.
On C'ne )*, )**), Restit'to "as in$or,ed, via &etterE3F dated C'ne -, )**) $ro, t!e .an:, t!at t!e
propert# "as $orec&osed. He t!'s, .# &etterE(F dated C'ne 30, )**), in$or,ed t!e .an: t!at !e !ad no
participation in t!e e9ec'tion o$ t!e ,ort%a%e and t!at !e never a't!oriJed Per$ecto $or t!e p'rpose.
In t!e ,eanti,e, Per$ecto died in )**2. In )**+, as Per$ectoQs "ido" petitioner CoraJon "as .ein%
evicted $ro, t!e propert#, s!e and !er co1petitioner1spo'ses Restit'to and Er&inda $i&ed on A'%'st *, )***
.e$ore t!e Re%iona& Tria& Co'rt 7RTC8 o$ 6a&a#an a co,p&aintE4F ?$or <'ietin% o$ tit&e "it! da,a%es? a%ainst
t!e .an: and t!e Re%ister o$ @eeds o$ Nas'%.', doc:eted as Civi& Case No. (;)+, assai&in% t!e ,ort%a%e
as .ein% n'&& and void as t!e# did not a't!oriJe t!e enc',.rance o$ t!e propert#.
In its Ans"er to t!e co,p&aint, t!e .an:, ,aintainin% t!e va&idit# o$ t!e ,ort%a%e, a&&e%ed t!at it !ad in $act
sec'red a tit&e in its na,e, TCT No. T14+420, a$ter Per$ecto $ai&ed to redee, t!e ,ort%a%eD t!at t!e
6a&a#an RTC !ad no 5'risdiction over t!e case as t!e .an: !ad .een p&aced 'nder receivers!ip and 'nder
&i<'idation .# t!e P!i&ippine @eposit Ins'rance Corporation 7P@IC8D t!at P@IC $i&ed .e$ore t!e RTC o$
Nas'%.' a petition $or assistance in t!e &i<'idation o$ t!e .an: "!ic! "as doc:eted as SP No. 0-;D and
t!at 5'risdiction to ad5'dicate disp'ted c&ai,s a%ainst it is &od%ed "it! t!e &i<'idation co'rt1RTC Nas'%.'.
6# @ecision o$ Can'ar# )-, 322;,E0F 6ranc! * o$ t!e 6a&a#an RTC rendered 5'd%,ent, in t!e co,p&aint $or
<'ietin% o$ tit&e, in $avor o$ t!e p&ainti$$s1!erein petitioners. It ordered respondent Re%ister o$ @eeds o$
Nas'%.' to cance& t!e enc',.rance annotated on TCT No. T1(-++*, and to cance& TCT No. T14+420
iss'ed in t!e na,e o$ t!e .an: and reinstate t!e $or,er tit&e. It a&so directed t!e .an: to ret'rn t!e
propert# to petitioner spo'ses Restit'to and Er&inda and to pa# P32,222 to a&& t!e petitioners to de$ra# t!e
costs o$ s'it.
T!e .an: appea&ed to t!e Co'rt o$ Appea&s, contendin%, inter a&ia, t!at t!e 6a&a#an RTC !ad no
5'risdiction over petitionersQ co,p&aint $or <'ietin% o$ tit&e.
6# t!e assai&ed @ecision o$ @ece,.er 3), 322-,E;F t!e appe&&ate co'rt, r'&in% in $avor o$ t!e .an:,
dis,issed petitionersQ co,p&aint $or <'ietin% o$ tit&e, "it!o't pre5'dice to t!e ri%!t o$ petitioners to ta:e 'p
t!eir c&ai,s "it! t!e Nas'%.' RTC sittin% as a &i<'idation co'rt.
To t!e appe&&ate co'rt, t!e 6a&a#an RTC, as a co'rt o$ %enera& 5'risdiction, s!o'&d !ave de$erred to t!e
Nas'%.' RTC "!ic! sits as a &i<'idation co'rt, %iven t!at t!e .an: "as a&read# 'nder receivers!ip "!en
petitioners $i&ed t!e co,p&aint $or <'ietin% o$ tit&e.
PetitionersQ Motion $or Reconsideration !avin% .een denied .# t!e appe&&ate co'rt .# Reso&'tion o$ Marc!
3-, 322+, t!e# $i&ed t!e present petition $or revie" on certiorari.
Assai&in% t!e appe&&ate co'rtQs r'&in% t!at t!e 6a&a#an RTC !ad no 5'risdiction over t!eir co,p&aint,
petitioners ar%'e t!at t!eir co,p&aint "as $i&ed ear&ier t!an P@ICQs petition $or assistance in t!e &i<'idationD
and t!at t!e .an: is no" estopped $ro, <'estionin% t!e 5'risdiction o$ t!e 6a&a#an RTC .eca'se it
active&# participated in t!e proceedin%s t!ereat.
T!e petition is i,pressed "it! ,erit.
Estoppe& .ars t!e .an: $ro, raisin% t!e iss'e o$ &ac: o$ 5'risdiction o$ t!e 6a&a#an RTC.
In LoJon v. NLRC,E-F t!e Co'rt ca,e 'p "it! a c&ear r'&e on "!en 5'risdiction .# estoppe& app&ies and
"!en it does not
T!e operation o$ estoppe& on t!e <'estion o$ 5'risdiction see,in%&# depends on "!et!er t!e &o"er co'rt
act'a&&# !ad 5'risdiction or not. I$ it !ad no 5'risdiction, .'t t!e case "as tried and decided 'pon t!e t!eor#
t!at it !ad 5'risdiction, t!e parties are not .arred, on appea&, $ro, assai&in% s'c! 5'risdiction, $or t!e sa,e
?,'st e9ist as a ,atter o$ &a", and ,a# not .e con$erred .# t!e consent o$ t!e parties or .# estoppe&.?
Ho"ever, i$ t!e &o"er co'rt !ad 5'risdiction, and t!e case "as !eard and decided 'pon a %iven t!eor#,
s'c!, $or instance, as t!at t!e co'rt !ad no 5'risdiction, t!e part# "!o ind'ced it to adopt s'c! t!eor# "i&&
not .e per,itted, on appea&, to ass',e an inconsistent position 1 t!at t!e &o"er co'rt !ad 5'risdiction...
7'nderscorin% s'pp&ied8
T!e r'&in% "as ec!oed in Metro,edia Ti,es Corporation v. Pastorin.E+F
In t!e present case, t!e 6a&a#an RTC, sittin% as a co'rt o$ %enera& 5'risdiction, !ad 5'risdiction over t!e
co,p&aint $or <'ietin% o$ tit&e $i&ed .# petitioners on A'%'st *, )***. T!e Nas'%.' RTC, as a &i<'idation
co'rt, ass',ed 5'risdiction over t!e c&ai,s a%ainst t!e .an: on&# on Ma# 30, 3222, "!en P@ICQs petition
$or assistance in t!e &i<'idation "as ra$$&ed t!ereat and %iven d'e co'rse.
=!i&e it is "e&&1sett&ed t!at &ac: o$ 5'risdiction on t!e s'.5ect ,atter can .e raised at an# ti,e and is not
&ost .# estoppe& .# &ac!es, t!e present case is an e9ception. To co,pe& petitioners to re1$i&e and re&iti%ate
t!eir c&ai,s .e$ore t!e Nas'%.' RTC "!en t!e parties !ad a&read# .een %iven t!e opport'nit# to present
t!eir respective evidence in a $'&&1.&o"n tria& .e$ore t!e 6a&a#an RTC "!ic! !ad, in $act, decided
petitionersQ co,p&aint 7a.o't t"o #ears .e$ore t!e appe&&ate co'rt rendered t!e assai&ed decision8 "o'&d
.e an e9ercise in $'ti&it# and "o'&d 'n5'st&# .'rden petitioners.
T!e Co'rt, in Ia&enJ'e&a v. Co'rt o$ Appea&s,E*F !e&d t!at as a %enera& r'&e, i$ t!ere is a 5'dicia& &i<'idation
o$ an inso&vent .an:, a&& c&ai,s a%ainst t!e .an: s!o'&d .e $i&ed in t!e &i<'idation proceedin%. T!e Co'rt in
Ia&enJ'e&a, !o"ever, a$ter considerin% t!e circ',stances attendant to t!e case, !e&d t!at t!e %enera& r'&e
s!o'&d not .e app&ied i$ to order t!e a%%rieved part# to re$i&e or re&iti%ate its case .e$ore t!e &iti%ation co'rt
"o'&d .e ?an e9ercise in $'ti&it#.? A,on% t!e circ',stances t!e Co'rt considered in t!at case is t!e $act
t!at t!e c&ai,ants "ere poor and t!e disp'ted parce& o$ &and "as t!eir on&# propert#, and t!e partiesQ
c&ai,s and de$enses "ere proper&# venti&ated in and considered .# t!e 5'dicia& co'rt.
In t!e present case, t!e Co'rt $inds t!at ana&o%o's considerations e9ist to "arrant t!e app&ication o$
Ia&enJ'e&a. Petitioner Restit'to "as -+ #ears o&d at t!e ti,e t!e petition "as $i&ed in t!is Co'rt, and !is
co1petitioner1"i$e Er&inda diedE)2F d'rin% t!e pendenc# o$ t!e case. And, e9cept $or co1petitioner CoraJon,
Restit'to is a resident o$ OJa,is Cit#. To co,pe& !i, to appear and re&iti%ate t!e case in t!e &i<'idation
co'rt1Nas'%.' RTC "!en t!e iss'es to .e raised .e$ore it are t!e sa,e as t!ose a&read# e9!a'stive&#
passed 'pon and decided .# t!e 6a&a#an RTC "o'&d .e s'per$&'o's.
=HEREFORE, t!e petition is GRANTE@. T!e @ecision o$ @ece,.er 3), 322- and Reso&'tion dated
Marc! 3-, 322+ o$ t!e Co'rt o$ Appea&s are SET ASI@E. T!e @ecision dated Can'ar# )-, 322; o$ t!e
Re%iona& Tria& Co'rt o$ 6a&a#an, 6atan%as, 6ranc! * is REINSTATE@.
MAHICARE PCI6 CIGNA HEALTHCARE 7no" MAHICARE HEALTHCARE CORPORATION8, ERIC S.
NU6LA, CR. M.@. and RUTH A. ASIS, M.@., Petitioners, v. MARIAN 6RIGITTE A. CONTRERAS, M.@.,
Respondent.
So,eti,e in Marc! 322(, Ma9icare Hea&t!care Corporation 7Ma9icare8 !ired @r. Marian 6ri%itte A.
Contreras 7@r. Contreras8 as a retainer doctor at t!e P!i&ippine Nationa& 6an: 7PN68 Head O$$ice,
Macapa%a& Aven'e, Ro9as 6o'&evard, Mani&a. Under t!eir ver.a& a%ree,ent, @r. Contreras "o'&d render
,edica& services $or one #ear at P302.22 per !o'r. Her retainer $ee "o'&d .e paid ever# )0t! and (2t! o$
eac! ,ont! .ased on !er "or: sc!ed'&e "!ic! "as ever# T'esda#, T!'rsda# and Frida# $ro, ;22
oc&oc: in t!e ,ornin% to 022 oc&oc: in t!e a$ternoon.;RrR&)
T!e controvers# started "!en, on C'&# (, 322(, @r. R't! A. Asis, Ma9icares ,edica& specia&ist on
Corporate Acco'nts, in$or,ed @r. Contreras t!at s!e "as %oin% to .e trans$erred to anot!er acco'nt a$ter
a ,ont!. On A'%'st 4, 322(, t!e Service A%ree,ent .et"een @r. Contreras and @r. Eric S. N'.&a,
Ma9icares Iice1President $or Medica& Services, "as e9ec'ted, e$$ectin% t!e trans$er o$ t!e $or,er to
Ma#.an: P!i&ippines 7Ma#.an:8 $or a period o$ $o'r 748 ,ont!s, $ro, A'%'st 0, 322( to Nove,.er 3*,
322(, "it! a retainer $ee o$ P);+.22 per !o'r.
@r. Contreras reported to Ma#.an: $or one 7)8 da# on&#. On A'%'st +, 322(, s!e $i&ed a co,p&aint .e$ore
t!e LA c&ai,in% t!at s!e "as constr'ctive&# dis,issed. Ma9icare, on t!e ot!er !and, insisted t!at t!ere
"as no constr'ctive dis,issa&.
R'&in% o$ t!e La.or Ar.iter
On Nove,.er 3*, 3220, t!e LA rendered a decision dis,issin% t!e co,p&aint o$ @r. Contreras $or &ac: o$
,erit. T!e pertinent portions o$ t!e LAs r'&in% readcra&a"&i.rar#
I$ indeed co,p&ainant "as $orced to si%n t!e contract o$ A'%'st 4, 322(, s!e co'&d not !ave reported to
t!at assi%n,ent 'nder it in t!e $irst p&ace. In reportin% so, s!e not on&# rati$ied t!e contract o$ service s!e
si%ned .'t a&so "aived a&& !er ri%!ts 'nder t!eir previo's a%ree,ent s!e is s'pposed to .e entit&ed to
en$orce. It ,a# .e t!at t!ere present 'nder t!e circ',stance o$ a .reac! o$ contract'a& o.&i%ation 'nder
t!e previo's 'nderta:in% "!ic! parta:es t!e nat're o$ constr'ctive dis,issa& .ased on evidence at !and.
At t!at t!en, co,p&ainant s!o'&d !ave at s'c! point venti&ated t!e ,atter .e$ore t!is $or',. S!e did not.
Instead, s!e proceeded to si%n or e9ec'te t!e <'estioned Service A%ree,ent "it! t!e respondent 'nder
t!e ter,s and conditions t!erein stated. To a pro$essiona& &i:e !er, a @octor, co,p&ainant s!o'&d !ave
re$'sed as s!e is at &i.ert#, in re$'sin% to si%n even i$ "!at s!e c&ai,ed t!ere appears a t!reat o$
dis,issa&. In t!is case, s!e even con$ir,ed "!at s!e si%ned .# reportin% to d't# t!erea$ter. And on&# a$ter
e9a,inin% "!at s!e si%ned t!at s!e rea&iJed s!e t!o'%!t o$ initiatin% t!e present co,p&aint. In t!is re%ard,
a.sent an# s!o"in% t!at s!e "as $orced to e9ec'te t!e disp'ted service a%ree,ent o$ A'%'st 4, 322(,
co,p&ainants co,p&aint $or constr'ctive dis,issa& can !ard&# .e s'stained .# a &ater c!an%e o$ !eart.
Findin% s'.stantia& .asis to s'pport t!e va&idit# o$ t!e Service A%ree,ent o$ A'%'st 4, 322( entered into
.# t!e parties, t!e present co,p&aint $or constr'ctive dis,issa& ,'st necessari&# $ai&. Conse<'ent c&ai, as
re&ie$ t!ere$or !as no .asis.-RrR&)
R'&in% o$ t!e NLRC
On Marc! );, 322-, 'pon appea&, t!e NLRC rendered a decision+ reversin% and settin% aside t!e LAs
decision. It dec&ared t!at @r. Contreras "as i&&e%a&&# dis,issed and ordered !er reinstate,ent to !er
$or,er or s'.stantia&&# e<'iva&ent position and t!e pa#,ent o$ !er .ac:"a%es.
T!e NLRC e9p&ained t!at t!e ?e9ec'tion o$ a Service A%ree,ent $or anot!er retainers!ip "it! &o"er sa&ar#
does not ne%ate constr'ctive dis,issa& arisin% $ro, t!e ter,ination o$ co,p&ainants PN6 retainers!ip
"it!o't eit!er 5'st or a't!oriJed ca'se .'t si,p&# is anc!ored on a&&e%ed co,p&aints "!ic! even @r. Eric
N'.&a reco%niJe to .e $ictitio's.?* @r. Contreras si%ned t!e Service A%ree,ent on A'%'st 4, 322(, and
&ater rep'diated it "it! a notice to Ma9icare t!at s!e co'&d not %o on servin% 'nder s'c! a
disadvanta%eo's sit'ation. T!e disadvanta%e s!e "as re$errin% to "as t!e disparit# in re,'neration
.et"een t!e PN6 retainers!ip "it! R302.22 per !o'r and t!at o$ Ma#.an: "it! R);+.22 per !o'r. T!e
c&ear econo,ic pre5'dice va&idated !er c&ai, o$ !avin% reservation on t!e Service A%ree,ent prior to !er
si%nat're. S!e si%ned t!e ne" a%ree,ent .eca'se it, .ein% a contract o$ ad!esion, %ave !er no rea&istic
c!ance to !a%%&e $or !er 5o.. T!'s, t!e NLRC disposedcra&a"&i.rar#
=HEREFORE, pre,ises considered, t!e @ecision appea&ed $ro, is !ere.# REIERSE@ and SET ASI@E
and a ne" one entered dec&arin% co,p&ainant "as i&&e%a&&# dis,issed. Accordin%&#, respondents are
!ere.# ordered to reinstate co,p&ainant to !er $or,er or s'.stantia&&# e<'iva&ent position and to pa# !er
.ac:"a%es $ro, t!e ti,e !er PN6 retainers!ip "as ter,inated 'nti& t!e $ina&it# o$ t!is @ecision.
SO OR@ERE@.)2RrR&)
R'&in% o$ t!e Co'rt o$ Appea&s
On Can'ar# 3+, 32)2, t!e CA a$$ir,ed t!e conc&'sions reac!ed .# t!e NLRC.
On t!e iss'e re%ardin% t!e e9istence or non1e9istence o$ an e,p&o#er1e,p&o#ee re&ations!ip, t!e CA
r'&ed t!at Ma9icare co'&d not raise t!e said iss'e $or t!e $irst ti,e on appea&. Nonet!e&ess, t!e CA r'&ed
t!at t!e records s!o"ed t!at t!ere e9isted an e,p&o#er1e,p&o#ee re&ations!ip .et"een Ma9icare and @r.
Contreras $or t!e $o&&o"in% reasons )F Ma9icare e9ercised si%ni$icant contro& in !er !irin% and t!e cond'ct
o$ !er "or:D 3F Ma9icare "as t!e one "!o en%a%ed !er servicesD (F Ma9icare deter,ined and prepared
!er "or: assi%n,ents, &i:e attendin% to PN6 ,e,.ers needin% ,edica& cons'&tation and per$or,in% s'c!
ot!er d'ties as ,a# .e assi%ned .#
Ma9icare to !er $ro, ti,e to ti,eD 4F Ma9icare deter,ined !er speci$ic "or: sc!ed'&es, "!ic! "as $or !er
to render services $ro, )22 to 022 oc&oc: in t!e a$ternoon ?ever# T'esda# and T!'rsda#D?)) and 0F
Ma9icare prescri.ed t!e conditions o$ "or: $or !er, "!ic! "ere a8 t!at s!e !ad to a.ide .# t!e co,pan#
r'&es and re%'&ations, .8 t!at s!e "o'&d :eep invio&ate a&& co,pan# records, doc',ents, and properties
and $ro, disc&osin% or reprod'cin% t!ese records and doc',ents to an#one "it!o't proper a't!orit#, c8
t!at s!e !ad to s'rrender 'pon re<'est $or, or 'pon ter,ination o$ !er services, s'c! records, doc',ents,
and properties to Ma9icareD d8 t!at Ma9icare, t!ro'%! its C'sto,er Care coordinator, Ms. Ceci&e Sa,onte,
"o'&d ,onitor !er "or:D and e8 t!at s!e "as co,pensated not accordin% to t!e res'&t o$ !er e$$orts, .'t
accordin% to t!e a,o'nt o$ ti,e s!e spent at t!e PN6 c&inic.)3RrR&)
T!e CA added t!at Ma9icare i,p&ied&# ad,itted t!at an e,p&o#er1e,p&o#ee re&ations!ip e9isted .et"een
.ot! parties .# ar%'in% t!at s!e "as not constr'ctive&# dis,issed. Hence, Ma9icare "as estopped $ro,
<'estionin% !er stat's as its e,p&o#ee.)(RrR&)
On t!e iss'e o$ "!et!er or not @r. Contreras "as constr'ctive&# dis,issed, t!e CA r'&ed t!at !er trans$er
to Ma#.an:, "!ic! res'&ted in a di,in'tion o$ !er sa&ar#, "as pre5'dicia& to !er interest and a,o'nted to a
constr'ctive dis,issa&. It stated t!at Ma9icare, as e,p&o#er, !ad t!e .'rden o$ provin% t!at not on&# "as
!er trans$er ,ade $or va&id or &e%iti,ate %ro'nds, s'c! as %en'ine .'siness necessit#, .'t a&so t!at s'c!
trans$er "as not 'nreasona.&e, inconvenient, or pre5'dicia& to !er.)4RrR&)
Ma9icare $i&ed a ,otion $or reconsideration .'t it "as denied .# t!e CA in its Reso&'tion,)0 dated Octo.er
3-, 32)2.
Not in con$or,it# "it! t!e adverse decision, Ma9icare $i&ed t!is petition anc!ored on t!e $o&&o"in%
GROUN@S
I
THE COURT OF APPEALS, IN REN@ERING THE ASSAILE@ @ECISION, ERRONEOUSLB SET ASI@E,
EIEN CONTRA@ICTE@, A PLETHORA OF CURISPRU@ENCE THAT LACN OR A6SENCE OF
CURIS@ICTION MAB 6E RAISE@ FOR THE FIRST TIME EIEN ON APPEAL.
II
THE COURT OF APPEALS MISAPPLIE@ THE 41TIERE@ TEST TO @ETERMINE THE EHISTENCE OF
EMPLOBER1EMPLOBEE RELATIONSHIP =ITHOUT CONCRETE 6ASIS.);RrR&) RRRLrR.&Re RRrfRR&
&RR &R.rRrg
Ma9icares position
Ma9icare ar%'es t!at <'estions on 5'risdiction ?,a# .e raised at an# sta%e o$ t!e proceedin%s, even on
appea&, and t!e ri%!t to do so is not &ost .# "aiver or .# estoppe&.? Ma9icare &i:e"ise asserts t!at ?i$ t!e
iss'e on 5'risdiction ,a# .e reso&ved .# an appe&&ate tri.'na& ,ot' propio "!en t!e sa,e !as not .een
raised in t!e co'rts .e&o", "it! ,ore reason t!at t!e sa,e s!o'&d .e a&&o"ed to .e considered and
decided 'pon .# t!e appe&&ate co'rt "!en, as in t!e present petition, t!e said iss'e !as .een raised in t!e
p&eadin%s .e$ore t!e appe&&ate co'rt.?)-RrR&)
Considerin% t!at @r. Contreras s'.,itted evidence to s'pport not on&# !er c&ai, o$ constr'ctive dis,issa&
.'t a&so t!e e9istence o$ an e,p&o#er1e,p&o#ee re&ations!ip, its act o$ raisin% said iss'e s!o'&d .e
s'$$icient %ro'nd $or t!e CA to consider and r'&e on t!e iss'e o$ 5'risdiction.)+RrR&)
Ma9icare c&ai,s t!at t!ere co'&d !ave .een no e,p&o#er1e,p&o#ee re&ations!ip arisin% $ro, t!e ora&
,edica& retainers!ip a%ree,ent .et"een t!e parties. It contends t!at it co'&d not !ave e$$ective&#
e9ercised contro& over t!e ,eans and ,et!od adopted .# @r. Contreras in acco,p&is!in% !er "or: as a
,edica& retainerD t!at it did not deter,ine t!e ,anner in "!ic! s!e cond'cted p!#sica& e9a,ination,
i,,'niJed, dia%nosed, or treated !er patientsD t!at @r. Contreras con$ir,ed t!at it paid !er retainer $ees
and ded'cted on&# )2P ?"it!!o&din% ta9 pa#a.&e1e9pandedD? t!at s!e "as not in t!e &ist o$ Ma9icares
pa#ro&&D and t!at Ma9icare did not ded'ct SSS contri.'tions $ro, t!e retainer $ees t!at @r. Contreras
received. Hence, t!e a.ove circ',stances disprove t!e presence o$ e,p&o#er1e,p&o#ee re&ations!ip. On
t!e contrar#, t!e# stron%&# indicate a case o$ an independent contractor.)*RrR&)
Ma9icare "ent on $'rt!er .# statin% t!at @r. Contreras "as an independent contractor .eca'se s!e
rendered services $or a $e" !o'rs a "ee:, %ivin% !er $ree ti,e to p'rs'e !er private practice as a
p!#sician and t!at 'pon t!e ter,s o$ t!eir a%ree,ent, eit!er part# co'&d ter,inate t!e arran%e,ent 'pon
one ,ont!s advance notice.32RrR&)
Fina&&#, Ma9icare contends t!at @r. Contreras is a !i%!&# ed'cated person "!o $ree&#, "i&&in%&# and
vo&'ntari&# si%ned t!e ne" Medica& Retainers!ip A%ree,ent.3) T!ere$ore, t!ere is no tr't! to !er c&ai,
t!at s!e "as $orced to si%n said a%ree,ent.33RrR&)
@r. Contrerass position
On t!e ot!er !and, @r. Contreras .asica&&# co'nters t!at Ma9icare did not raise t!e iss'e o$ t!e e9istence
o$ an e,p&o#er1e,p&o#ee re&ations!ip .e$ore t!e LA. It a&so did not <'estion s'c! point in t!e NLRC.
Ma9icare .ro'%!t 'p t!e ,atter $or t!e $irst ti,e on&# in t!e CA.
T!e Co'rts R'&in%
T!e petition !as no ,erit at a&&.
As a r'&e, a part# "!o de&i.erate&# adopts a certain t!eor# 'pon "!ic! t!e case is tried and decided .# t!e
&o"er co'rt, "i&& not .e per,itted to c!an%e t!eor# on appea&. Points o$ &a", t!eories, iss'es and
ar%',ents not .ro'%!t to t!e attention o$ t!e &o"er co'rt need not .e, and ordinari&# "i&& not .e,
considered .# a revie"in% co'rt, as t!ese cannot .e raised $or t!e $irst ti,e at s'c! &ate sta%e. It "o'&d .e
'n$air to t!e adverse part# "!o "o'&d !ave no opport'nit# to present $'rt!er evidence ,ateria& to t!e ne"
t!eor#, "!ic! it co'&d !ave done !ad it .een a"are o$ it at t!e ti,e o$ t!e !earin% .e$ore t!e tria& co'rt. To
per,it Ma9icare in t!is case to c!an%e its t!eor# on appea& "o'&d t!'s .e 'n$air to @r. Contreras, and
"o'&d o$$end t!e .asic r'&es o$ $air p&a#, 5'stice and d'e process.
Indeed, Ma9icare is a&read# estopped $ro, .e&ated&# raisin% t!e iss'e o$ &ac: o$ 5'risdiction considerin%
t!at it !as active&# participated in t!e proceedin%s .e$ore t!e LA and t!e NLRC. T!e Co'rt !as
consistent&# !e&d t!at ?"!i&e 5'risdiction ,a# .e assai&ed at an# sta%e, a part#s active participation in t!e
proceedin%s .e$ore a co'rt "it!o't 5'risdiction "i&& estop s'c! part# $ro, assai&in% t!e &ac: o$ it.? It is an
'ndesira.&e practice o$ a part# to participate in t!e proceedin%s, s'.,it !is case $or decision and t!en
accept t!e 5'd%,ent, i$ $avora.&e, .'t attac: it $or &ac: o$ 5'risdiction, "!en adverse.3(RrR&)
In t!e case at .enc!, it ,a# .e reca&&ed t!at @r. Contreras $i&ed a co,p&aint $or i&&e%a& dis,issa& a%ainst
Ma9icare .e$ore t!e LA. Ma9icare "as %iven t!e c!ance to de$end its case .e$ore t!e LA. In $act, t!e LA
decision $avored Ma9icare "!en it r'&ed t!at t!ere "as no i&&e%a& dis,issa&. On appea&, !o"ever, t!e
NLRC reversed and set aside t!e LAs decision and ordered @r. Contrerass reinstate,ent "it! pa#,ent o$
.ac:"a%es. Upon t!e denia& o$ its ,otion $or reconsideration, Ma9icare e&evated its case to t!e CA raisin%
t!e iss'e o$ 5'risdiction $or t!e $irst ti,e.
Undenia.&#, Ma9icare never <'estioned t!e LAs 5'risdiction $ro, t!e ver# .e%innin% and never raised t!e
iss'e o$ e,p&o#er1e,p&o#ee re&ations!ip t!ro'%!o't t!e LA proceedin%s. S're&#, Ma9icare is not 'na"are
o$ Artic&e 3)- o$ t!e La.or Code "!ic! en',erates t!e cases "!ere t!e LA !as e9c&'sive and ori%ina&
5'risdiction. Ma9icare de$inite&# :no"s t!e .asic r'&e t!at t!e LA can e9ercise 5'risdiction over cases on&#
"!en t!ere is an e,p&o#er1e,p&o#ee re&ations!ip .et"een t!e parties in disp'te.
I$ Ma9icare "as o$ t!e position t!at t!ere "as no e,p&o#er1e,p&o#ee re&ations!ip e9istin% .et"een
Ma9icare and @r. Contreras, it s!o'&d !ave <'estioned t!e 5'risdiction o$ t!e LA ri%!t a"a#. S'rprisin%&#, it
never did. Instead, it active&# participated in t!e LA proceedin%s "it!o't .rin%in% to t!e LAs attention t!e
iss'e o$ e,p&o#er1e,p&o#ee re&ations!ip.
On appea& .e$ore t!e NLRC, t!e s'.5ect iss'e "as never raised eit!er. Ma9icare on&# raised t!e s'.5ect
iss'e $or t!e $irst ti,e "!en it $i&ed a petition in t!e CA c!a&&en%in% t!e adverse decision o$ t!e NLRC. It is,
t!ere$ore, estopped $ro, assai&in% t!e 5'risdiction o$ t!e LA and t!e NLRC.
It is tr'e t!at <'estions o$ 5'risdiction ,a# .e raised at an# sta%e. It is a&so tr'e, !o"ever, t!at in t!e
interest o$ $airness, <'estions c!a&&en%in% t!e 5'risdiction o$ co'rts "i&& not .e to&erated i$ t!e part#
<'estionin% s'c! 5'risdiction active&# participates in t!e co'rt proceedin%s and a&&o"s t!e co'rt to pass
5'd%,ent on t!e case, and t!en <'estions t!e propriet# o$ said 5'd%,ent a$ter %ettin% an 'n$avora.&e
decision. It ,'st .e noted t!at Ma9icare !ad t"o 738 c!ances o$ raisin% t!e iss'e o$ 5'risdiction $irst, in t!e
LA &eve& and second, in t!e NLRC &eve&. Un$ort'nate&#, it re,ained si&ent on t!e iss'e o$ 5'risdiction "!i&e
active&# participatin% in .ot! tri.'na&s. It "as de$inite&# too &ate $or Ma9icare to open 'p t!e iss'e o$
5'risdiction in t!e CA.
T!e Co'rt cannot to&erate t!is :ind o$ proced'ra& strate%# on Ma9icares part .eca'se it "o'&d .e 'n$air to
@r. Contreras "!o "o'&d no &on%er .e a.&e to present $'rt!er evidence ,ateria& to t!e ne" iss'e raised on
appea&. Ma9icares &apse in proced're !as proved $ata& to its ca'se and t!ere$ore, it s!o'&d s'$$er t!e
conse<'ences. T!e Co'rt !as .een consistent in its r'&in% in a &on% &ine o$ cases, t!e &atest o$ "!ic! is
@'t# Free P!i&ippines Services, Inc., v. Mano&ito A. Tria,34 "!ere it "as "rittencra&a"&i.rar#
It "as on&# in petitioners Petition $or Certiorari .e$ore t!e CA did it i,p'te &ia.i&it# on @FP as respondents
direct e,p&o#er and as t!e entit# "!o cond'cted t!e investi%ation and initiated respondents ter,ination
proceedin%s. O.vio's&#, petitioner c!an%ed its t!eor# "!en it e&evated t!e NLRC decision to t!e CA. T!e
appe&&ate co'rt, t!ere$ore, apt&# re$'sed to consider t!e ne" t!eor# o$$ered .# petitioner in its petition. As
t!e o.5ect o$ t!e p&eadin%s is to dra" t!e &ines o$ .att&e, so to spea:, .et"een t!e &iti%ants, and to indicate
$air&# t!e nat're o$ t!e c&ai,s or de$enses o$ .ot! parties, a part# cannot s'.se<'ent&# ta:e a position
contrar# to, or inconsistent, "it! its p&eadin%s. It is a ,atter o$ &a" t!at "!en a part# adopts a partic'&ar
t!eor# and t!e case is tried and decided 'pon t!at t!eor# in t!e co'rt .e&o", !e "i&& not .e per,itted to
c!an%e !is t!eor# on appea&. T!e case "i&& .e revie"ed and decided on t!at t!eor# and not approac!ed
and reso&ved $ro, a di$$erent point o$ vie".
T!e revie" o$ &a.or cases is con$ined to <'estions o$ 5'risdiction or %rave a.'se o$ discretion. T!e a&&e%ed
a.sence o$ e,p&o#er1e,p&o#ee re&ations!ip cannot .e raised $or t!e $irst ti,e on appea&. T!e reso&'tion o$
t!is iss'e re<'ires t!e ad,ission and ca&i.ration o$ evidence and t!e LA and t!e NLRC did not pass 'pon
it in t!eir decisions. =e cannot per,it petitioner to c!an%e its t!eor# on appea&. It "o'&d .e 'n$air to t!e
adverse part# "!o "o'&d !ave no ,ore opport'nit# to present $'rt!er evidence, ,ateria& to t!e ne"
t!eor#, "!ic! it co'&d !ave done !ad it .een a"are ear&ier o$ t!e ne" t!eor# .e$ore t!e LA and t!e NLRC.
More so in t!is case as t!e s'pposed e,p&o#er o$ respondent "!ic! is @FP "as not and is not a part# to
t!e present case.
In Pa,p&ona P&antation Co,pan# v. Acosta, petitioner t!erein raised $or t!e $irst ti,e in its appea& to t!e
NLRC t!at respondents t!erein "ere not its e,p&o#ees .'t o$ anot!er co,pan#. In .r's!in% aside t!is
de$ense, t!e Co'rt !e&dcra&a"&i.rar#
9 9 9 Petitioner is estopped $ro, den#in% t!at respondents "or:ed $or it. In t!e $irst p&ace, it never raised
t!is de$ense in t!e proceedin%s .e$ore t!e La.or Ar.iter. Nota.&#, t!e de$ense it raised pertained to t!e
nat're o$ respondentsQ e,p&o#,ent, i.e., "!et!er t!e# are seasona& e,p&o#ees, contractors, or "or:ed
'nder t!e pa:#a" s#ste,. T!'s, in its Position Paper, petitioner a&&e%ed t!at so,e o$ t!e respondents are
cocon't $i&ers and copra !oo:ers or sa:adorsD so,e are seasona& e,p&o#ees "!o "or:ed as scoopers or
&'%iterosD so,e are contractorsD and so,e "or:ed 'nder t!e pa:#a" s#ste,. In s'pport o$ t!ese
a&&e%ations, petitioner even presented t!e co,pan#Qs pa#ro&& "!ic! "i&& a&&e%ed&# prove its a&&e%ations.
6# settin% $ort! t!ese de$enses, petitioner, in e$$ect, ad,itted t!at respondents "or:ed $or it, a&.eit in
di$$erent capacities. S'c! a&&e%ations are ne%ative pre%nant 1 denia&s pre%nant "it! t!e ad,ission o$ t!e
s'.stantia& $acts in t!e p&eadin% responded to "!ic! are not s<'are&# denied, and a,o'nts to an
ac:no"&ed%,ent t!at respondents "ere indeed e,p&o#ed .# petitioner.
A&so in Te&ep!one En%ineerin% M Service Co., Inc. v. =CC, et a&., t!e Co'rt !e&d t!at t!e &ac: o$ e,p&o#er1
e,p&o#ee re&ations!ip is a ,atter o$ de$ense t!at t!e e,p&o#er s!o'&d proper&# raise in t!e proceedin%s
.e&o". T!e deter,ination o$ t!is re&ations!ip invo&ves a $indin% o$ $act, "!ic! is conc&'sive and .indin% and
not s'.5ect to revie" .# t!is Co'rt.
In t!is case, petitioner insisted t!at respondent "as dis,issed $ro, e,p&o#,ent $or ca'se and a$ter t!e
o.servance o$ t!e proper proced're $or ter,ination. Conse<'ent&#, petitioner cannot no" den# t!at
respondent is its e,p&o#ee. =!i&e indeed, 5'risdiction cannot .e con$erred .# acts or o,ission o$ t!e
parties, petitionerQs .e&ated denia& t!at it is t!e e,p&o#er o$ respondent is o.vio's&# an a$tert!o'%!t, a
devise to de$eat t!e &a" and evade its o.&i%ations.
It is a $'nda,enta& r'&e o$ proced're t!at !i%!er co'rts are prec&'ded $ro, entertainin% ,atters neit!er
a&&e%ed in t!e p&eadin%s nor raised d'rin% t!e proceedin%s .e&o", .'t venti&ated $or t!e $irst ti,e on&# in a
,otion $or reconsideration or on appea&. Petitioner is .o'nd .# its s'.,issions t!at respondent is its
e,p&o#ee and it s!o'&d not .e per,itted to c!an%e its t!eor#. S'c! c!an%e o$ t!eor# cannot .e to&erated
on appea&, not d'e to t!e strict app&ication o$ proced'ra& r'&es, .'t as a ,atter o$ $airness. EE,p!ases
s'pp&iedF
=HEREFORE, t!e petition is @ENIE@.
RU6B SHELTER 6UIL@ERS AN@ REALTB @EIELOPMENT CORPORATION, Petitioner, v. HON.
PA6LO C. FORMARAN III, Presidin% C'd%e o$ Re%iona& Tria& Co'rt 6ranc! 3), Na%a Cit#, as Pairin%
C'd%e $or Re%iona& Tria& Co'rt 6ranc! 33, For,er&# Presided 6# HON. NOIELITA IILLEGAS1LLAGUNO
7Retired 2) Ma# 322;8, ROMEO B. TAN, RO6ERTO L. O6IE@O and ATTB. TOMAS A. REBES,
Respondents.
Petitioner o.tained a &oan( in t!e tota& a,o'nt o$ P*0,-22,;32.22 $ro, respondents Ro,eo B. Tan 7Tan8
and Ro.erto L. O.iedo 7O.iedo8, sec'red .# rea& estate ,ort%a%es over $ive parce&s o$ &and, a&& &ocated in
Trian%'&o, Na%a Cit#, covered .# Trans$er Certi$icates o$ Tit&e 7TCTs8 No. (+(-;,4 No. 3**)+,0 No.
(+(-4,; No. (*3(3,- and No. (*330,+ iss'ed .# t!e Re%istr# o$ @eeds $or Na%a Cit#, in t!e na,e o$
petitioner. =!en petitioner "as 'na.&e to pa# t!e &oan "!en it .eca,e d'e and de,anda.&e, respondents
Tan and O.iedo a%reed to an e9tension o$ t!e sa,e.
In a Me,orand', o$ A%ree,ent* dated )- Marc! 3220, respondents Tan and O.iedo %ranted petitioner
'nti& () @ece,.er 3220 to sett&e its inde.tedness, and condoned t!e interests, pena&ties and s'rc!ar%es
accr'in% t!ereon $ro, ) Octo.er 3224 to () @ece,.er 3220 "!ic! a,o'nted to P-4,;-+,;4-.22. T!e
Me,orand', o$ A%ree,ent re<'ired, in t'rn, t!at petitioner e9ec'te si,'&taneo's&# "it! t!e said
Me,orand',, ?.# "a# o$ dacion en pa%o,? @eeds o$ A.so&'te Sa&e in $avor o$ respondents Tan and
O.iedo, coverin% t!e sa,e parce&s o$ &and s'.5ect o$ t!e ,ort%a%es. T!e @eeds o$ A.so&'te Sa&e "o'&d
.e 'ni$or,&# dated 3 Can'ar# 322;, and state t!at petitioner so&d to respondents Tan and O.iedo t!e
parce&s o$ &and $or t!e $o&&o"in% p'rc!ase prices
TCT No. P'rc!ase Price
(+(-; P *,(42,222.22
3**)+ P 3+,222,222.22
(+(-4 P )3,222,222.22
(*3(3 P ),;22,222.22
(*330 P ),;22,222.22
Petitioner co'&d c!oose to pa# o$$ its inde.tedness "it! individ'a& or a&& $ive parce&s o$ &andD or it co'&d
redee, said properties .# pa#in% respondents Tan and O.iedo t!e $o&&o"in% prices $or t!e sa,e,
inc&'sive o$ interest and pena&ties
TCT No. Rede,ption Price
(+(-; P 30,(3+,*(*.22
3**)+ P (0,;;2,+22.22
(+(-4 P 3+,4--,;22.22
(*3(3 P ;,3((,(+).22
(*330 P ;,3((,(+).22
In t!e event t!at petitioner is a.&e to redee, an# o$ t!e a$ore1,entioned parce&s o$ &and, t!e @eed o$
A.so&'te Sa&e coverin% t!e said propert# s!a&& .e n'&&i$ied and !ave no $orce and e$$ectD and respondents
Tan and O.iedo s!a&& t!en ret'rn t!e o"nerQs d'p&icate o$ t!e correspondin% TCT to petitioner and a&so
e9ec'te a @eed o$ @isc!ar%e o$ Mort%a%e. Ho"ever, i$ petitioner is 'na.&e to redee, t!e parce&s o$ &and
"it!in t!e period a%reed 'pon, respondents Tan and O.iedo co'&d a&read# present t!e @eeds o$ A.so&'te
Sa&e coverin% t!e sa,e to t!e O$$ice o$ t!e Re%ister o$ @eeds $or Na%a Cit# so respondents Tan and
O.iedo co'&d ac<'ire TCTs to t!e said properties in t!eir na,es.
T!e Me,orand', o$ A%ree,ent $'rt!er provided t!at s!o'&d petitioner contest, 5'dicia&&# or ot!er"ise,
an# act, transaction, or event re&ated to or necessari&# connected "it! t!e said Me,orand', and t!e
@eeds o$ A.so&'te Sa&e invo&vin% t!e $ive parce&s o$ &and, it "o'&d pa# respondents Tan and O.iedo
P)2,222,222.22 as &i<'idated da,a%es inc&'sive o$ costs and attorne#Qs $ees. Petitioner "o'&d &i:e"ise
pa# respondents Tan and O.iedo t!e condoned interests, s'rc!ar%es and pena&ties.)2 Fina&&#, s!o'&d a
contest arise $ro, t!e Me,orand', o$ A%ree,ent, Mr. R'.en Sia 7Sia8, President o$ petitioner
corporation, persona&&# ass',es, 5oint&# and severa&&# "it! petitioner, t!e &atterQs ,onetar# o.&i%ation to
respondent Tan and O.iedo.
Respondent Att#. To,as A. Re#es 7Re#es8 "as t!e Notar# P'.&ic "!o notariJed t!e Me,orand', o$
A%ree,ent dated )- Marc! 3220 .et"een respondent Tan and O.iedo, on one !and, and petitioner, on
t!e ot!er.
P'rs'ant to t!e Me,orand', o$ A%ree,ent, petitioner, represented .# Mr. Sia, e9ec'ted separate @eeds
o$ A.so&'te Sa&e,)) over t!e $ive parce&s o$ &and, in $avor o$ respondents Tan and O.iedo. On t!e .&an:
spaces provided $or in t!e said @eeds, so,e.od# "rote t!e (rd o$ Can'ar# 322; as t!e date o$ t!eir
e9ec'tion. T!e @eeds "ere a%ain notariJed .# respondent Att#. Re#es a&so on ( Can'ar# 322;.
=it!o't pa#,ent !avin% .een ,ade .# petitioner on () @ece,.er 3220, respondents Tan and O.iedo
presented t!e @eeds o$ A.so&'te Sa&e dated ( Can'ar# 322; .e$ore t!e Re%ister o$ @eeds o$ Na%a Cit#
on + Marc! 322;, as a res'&t o$ "!ic!, t!e# "ere a.&e to sec're TCTs over t!e $ive parce&s o$ &and in t!eir
na,es.
On ); Marc! 322;, petitioner $i&ed .e$ore t!e RTC a Co,p&aint)3 a%ainst respondents Tan, O.iedo, and
Att#. Re#es, $or dec&aration o$ n'&&it# o$ deeds o$ sa&es and da,a%es, "it! pra#er $or t!e iss'ance o$ a "rit
o$ pre&i,inar# in5'nction andOor te,porar# restrainin% order 7TRO8. T!e Co,p&aint "as doc:eted as Civi&
Case No. 322;122(2.
On t!e .asis o$ t!e $acts a&read# reco'nted a.ove, petitioner raised t"o ca'ses o$ action in its Co,p&aint.
As $or t!e $irst ca'se o$ action, petitioner a&&e%ed t!at as ear&# as 3- @ece,.er 3220, its President a&read#
"rote a &etter in$or,in% respondents Tan and O.iedo o$ t!e intention o$ petitioner to pa# its &oan and
re<'estin% a ,eetin% to co,p'te t!e $ina& a,o'nt d'e. T!e parties !e&d ,eetin%s on ( and 4 Can'ar#
322; .'t t!e# $ai&ed to arrive at a ,'t'a&&# accepta.&e co,p'tation o$ t!e $ina& a,o'nt o$ &oan pa#a.&e.
Respondents Tan and O.iedo t!en re$'sed t!e re<'est o$ petitioner $or $'rt!er dia&o%'es. Un.e:no"nst to
petitioner, despite t!e on%oin% ,eetin%s, respondents Tan and O.iedo, in evident .ad $ait!, a&read# !ad
t!e pre1e9ec'ted @eeds o$ A.so&'te Sa&e notariJed on ( Can'ar# 322; .# respondent Att#. Re#es. Att#.
Re#es, in connivance "it! respondents Tan and O.iedo, $a&se&# ,ade it appear in t!e @eeds o$ A.so&'te
Sa&e t!at Mr. Sia !ad persona&&# ac:no"&ed%edOrati$ied t!e said @eeds .e$ore Att#. Re#es.
Assertin% t!at t!e @eeds o$ A.so&'te Sa&e over t!e $ive parce&s o$ &and "ere e9ec'ted ,ere&# as sec'rit#
$or t!e pa#,ent o$ its &oan to respondents Tan and O.iedoD t!at t!e @eeds o$ A.so&'te Sa&e, e9ec'ted in
accordance "it! t!e Me,orand', o$ A%ree,ent, constit'ted pact', co,,isori', and as s'c!, "ere
n'&& and voidD and t!at t!e ac:no"&ed%,ent in t!e @eeds o$ A.so&'te Sa&e "ere $a&si$ied, petitioner
averred
)(. T!at .# reason o$ t!e $ra'd'&ent actions .# t!e E!erein respondentsF, E!erein petitionerF is pre5'diced
and is no" in dan%er o$ .ein% deprived, p!#sica&&# and &e%a&&#, o$ t!e ,ort%a%ed properties "it!o't .ene$it
o$ &e%a& processes s'c! as t!e re,ed# o$ $orec&os're and its attendant proced'res, so&e,nities and
re,edies avai&a.&e to a ,ort%a%or, "!i&e EpetitionerF is desiro's and "i&&in% to pa# its o.&i%ation and !ave
t!e ,ort%a%ed properties re&eased.)(
In s'pport o$ its second ca'se o$ action, petitioner narrated in its Co,p&aint t!at on )+ Can'ar# 322;,
respondents Tan and O.iedo $orci.&# too: over, "it! t!e 'se o$ ar,ed ,en, possession o$ t!e $ive parce&s
o$ &and s'.5ect o$ t!e $a&si$ied @eeds o$ A.so&'te Sa&e and $enced t!e said properties "it! .ar.ed "ire.
6e%innin% ( Marc! 322;, respondents Tan and O.iedo started de,o&is!in% so,e o$ t!e co,,ercia&
spaces standin% on t!e parce&s o$ &and in <'estion "!ic! "ere .ein% rented o't .# petitioner.
Respondents Tan and O.iedo "ere a&so a.o't to tear do"n a principa& i,prove,ent on t!e properties
consistin% o$ a stee&1and1concrete str'ct're !o'sin% a ,otor ve!ic&e ter,ina& operated .# petitioner. T!e
actions o$ respondents Tan and O.iedo "ere to t!e da,a%e and pre5'dice o$ petitioner and its
tenantsO&essees. Petitioner, a&one, c&ai,ed to !ave s'$$ered at &east P(22,222.22 in act'a& da,a%es .#
reason o$ t!e p!#sica& invasion .# respondents Tan and O.iedo and t!eir ar,ed %oons o$ t!e $ive parce&s
o$ &and.
U&ti,ate&#, petitionerQs pra#er in its Co,p&aint reads
=HEREFORE, pre,ises considered, it is ,ost respect$'&&# pra#ed o$ t!is Honora.&e Co'rt t!at 'pon t!e
$i&in% o$ t!is co,p&aint, a -31!o'r te,porar# restrainin% order .e $ort!"it! iss'ed e9 parte
7a8 Restrainin% E!erein respondentsF Tan and O.iedo, t!eir a%ents, privies or representatives, $ro,
co,,ittin% actOs tendin% to a&ienate t!e ,ort%a%ed properties $ro, t!e E!erein petitionerF pendin% t!e
reso&'tion o$ t!e case, inc&'din% .'t not &i,ited to t!e acts co,p&ained o$ in para%rap! ?)4?, a.oveD
7.8 Restrainin% t!e Re%ister o$ @eeds o$ Na%a Cit# $ro, entertainin% ,oves .# t!e ErespondentsF to !ave
EpetitionerQsF certi$icates o$ tit&e to t!e ,ort%a%ed properties cance&&ed and c!an%edOre%istered in
ErespondentsF TanQs and O.iedoQs na,es, andOor re&eased to t!e,D
7c8 A$ter notice and !earin%, t!at a "rit o$ pre&i,inar# in5'nction .e iss'ed i,posin% t!e sa,e restraints
indicated in t!e ne9t precedin% t"o para%rap!s o$ t!is pra#erD andcra&a"&i.rar#
7d8 A$ter tria&, 5'd%,ent .e rendered
). Ma:in% t!e in5'nction per,anentD
3. @ec&arin% t!e provision in t!e Me,orand', o$ A%ree,ent re<'irin% t!e EpetitionerF to e9ec'te deed o$
sa&es 7sic8 in $avor o$ t!e Erespondents Tan and O.iedoF as dacion en pa%o in t!e event o$ non1pa#,ent o$
t!e de.t as pact', co,,issori',D
(. Ann'&&in% t!e @eedEsF o$ Sa&e $or TCT Nos. 3**)+, (+(-4, (+(-;, (*330 and (*3(3, a&& dated Can'ar#
(, 322;, t!e sa,e .ein% in contravention o$ &a"D
4. Orderin% t!e ErespondentsF 5oint&# and so&idari&# to pa# t!e EpetitionerF act'a& da,a%es o$ at &east
P(22,222.22D attorne#Qs $ees in t!e a,o'nt o$ P)22,222.22 p&'s P),222.22 per co'rt attendance o$
co'nse& as appearance $eeD &iti%ation e9penses in t!e a,o'nt o$ at &east P)2,222.22 and e9e,p&ar#
da,a%es in t!e a,o'nt o$ P(22,222.22, p&'s t!e costs.
EPetitionerF $'rt!er pra#s $or s'c! ot!er re&ie$s as ,a# .e proper, 5'st and e<'ita.&e 'nder t!e pre,ises.)4
Upon $i&in% its Co,p&aint "it! t!e RTC on ); Marc! 322;, petitioner paid t!e s', o$ P)(,;44.30 $or
doc:et and ot!er &e%a& $ees, as assessed .# t!e O$$ice o$ t!e C&er: o$ Co'rt. T!e C&er: o$ Co'rt initia&&#
considered Civi& Case No. 322;122(2 as an action incapa.&e o$ pec'niar# esti,ation and co,p'ted t!e
doc:et and ot!er &e%a& $ees d'e t!ereon accordin% to Section -7.87)8, R'&e )4) o$ t!e R'&es o$ Co'rt.
On&# respondent Tan $i&ed an Ans"er)0 to t!e Co,p&aint o$ petitioner. Respondent Tan did ad,it t!at
,eetin%s "ere !e&d "it! Mr. Sia, as t!e representative o$ petitioner, to t!res! o't Mr. SiaQs c!ar%e t!at t!e
co,p'tation .# respondents Tan and O.iedo o$ t!e interests, s'rc!ar%es and pena&ties accr'in% on t!e
&oan o$ petitioner "as rep&ete "it! errors and 'ncertainties. Ho"ever, Mr. Sia $ai&ed to .ac: 'p !is
acc'sation o$ errors and 'ncertainties and to present !is o"n $ina& co,p'tation o$ t!e a,o'nt d'e.
@isappointed and e9asperated, respondents Tan and O.iedo in$or,ed Mr. Sia t!at t!e# !ad a&read#
as:ed respondent Att#. Re#es to co,e over to notariJe t!e @eeds o$ A.so&'te Sa&e. Respondent Att#.
Re#es as:ed Mr. Sia "!et!er it "as !is si%nat're appearin% a.ove !is printed na,e on t!e @eeds o$
A.so&'te Sa&e, to "!ic! Mr. Sia rep&ied #es. On 4 Can'ar# 322;, Mr. Sia sti&& $ai&ed to esta.&is! !is c&ai, o$
errors and 'ncertainties in t!e co,p'tation o$ t!e tota& a,o'nt "!ic! petitioner ,'st pa# respondent Tan
and O.iedo. Mr. Sia, instead, so'%!t a nine1,ont! e9tension $or pa#in% t!e &oan o.&i%ation o$ petitioner
and t!e red'ction o$ t!e interest rate t!ereon to on&# one percent 7)P8 per ,ont!. Respondents Tan and
O.iedo re5ected .ot! de,ands.
Respondent Tan ,aintained t!at t!e @eeds o$ A.so&'te Sa&e "ere not e9ec'ted ,ere&# as sec'rities $or
t!e &oan o$ petitioner. T!e @eeds o$ A.so&'te Sa&e over t!e $ive parce&s o$ &and "ere t!e consideration $or
t!e pa#,ent o$ t!e tota& inde.tedness o$ petitioner to respondents Tan and O.iedo, and t!e condonation
o$ t!e )01,ont! interest "!ic! a&read# accr'ed on t!e &oan, "!i&e providin% petitioner "it! t!e %o&den
opport'nit# to sti&& redee, a&& or even portions o$ t!e properties covered .# said @eeds. Un$ort'nate&#,
petitioner $ai&ed to e9ercise its ri%!t to redee, an# o$ t!e said properties.
6e&#in% t!at t!e# $orci.&# too: possession o$ t!e $ive parce&s o$ &and, respondent Tan a&&e%ed t!at it "as
Mr. Sia "!o, "it! t!e aid o$ ar,ed ,en, on .oard a Sports Uti&it# Ie!ic&e and a tr'c:, ra,,ed into t!e
personne& o$ respondents Tan and O.iedo ca'sin% ,e&ee and dist'r.ance. Moreover, .# t!e e9ec'tion o$
t!e @eeds o$ A.so&'te Sa&e, t!e properties s'.5ect t!ereo$ "ere, ipso 5're, de&ivered to respondents Tan
and O.iedo. T!e de,o&ition o$ t!e e9istin% str'ct'res on t!e properties "as not!in% .'t an e9ercise o$
do,inion .# respondents Tan and O.iedo.
Respondent Tan, t!'s, so'%!t not 5'st t!e dis,issa& o$ t!e Co,p&aint o$ petitioner, .'t a&so t!e %rant o$ !is
co'nterc&ai,. T!e pra#er in !is Ans"er is $ait!$'&&# reprod'ced .e&o"
=!ere$ore, pre,ises considered, it is ,ost respect$'&&# pra#ed t!at, a$ter d'e !earin%, 5'd%,ent .e
rendered dis,issin% t!e co,p&aint, and on t!e co'nterc&ai,, E!erein petitionerF and R'.en Sia, .e ordered
to inde,ni$#, 5oint&# and severa&&# E!erein respondents Tan and O.iedoF t!e a,o'nts o$ not &ess t!an
P)2,222,222.22 as &i<'idated da,a%es and t!e $'rt!er s', o$ not &ess t!an P022,222.22 as attorne#Qs
$ees. In t!e a&ternative, and s!o'&d it .eco,e necessar#, it is !ere.# pra#ed t!at EpetitionerF .e ordered to
pa# !erein Erespondents Tan and O.iedoF t!e entire principa& &oan o$ P*0,-22,;32.22, p&'s interests,
s'rc!ar%es and pena&ties co,p'ted $ro, Marc! )-, 3220 'nti& t!e entire s', is $'&&# paid, inc&'din% t!e
a,o'nt o$ P-4,;-+,;4-.22 $ore%one interest coverin% t!e period $ro, Octo.er ), 3224 to @ece,.er (),
3220 or $or a tota& o$ $i$teen 7)08 ,ont!s, p&'s incidenta& e9penses as ,a# .e proved in co'rt, in t!e event
t!at Anne9es ?G? to ?L? .e n'&&i$ied. Ot!er re&ie$ and re,edies as are 5'st and e<'ita.&e 'nder t!e
pre,ises are !ere.# pra#ed $or.);
T!erea$ter, respondent Tan $i&ed .e$ore t!e RTC an O,ni.'s Motion in "!ic! !e contended t!at Civi&
Case No. 322;122(2 invo&ved rea& properties, t!e doc:et $ees $or "!ic! s!o'&d .e co,p'ted in
accordance "it! Section -7a8, not Section -7.87)8, o$ R'&e )4) o$ t!e R'&es o$ Co'rt, as a,ended .# A.M.
No. 24131241SC "!ic! too: e$$ect on ); A'%'st 3224. Since petitioner did not pa# t!e appropriate doc:et
$ees $or Civi& Case No. 322;122(2, t!e RTC did not ac<'ire 5'risdiction over t!e said case. Hence,
respondent Tan as:ed t!e RTC to iss'e an order re<'irin% petitioner to pa# t!e correct and acc'rate
doc:et $ees p'rs'ant to Section -7a8, R'&e )4) o$ t!e R'&es o$ Co'rt, as a,endedD and s!o'&d petitioner
$ai& to do so, to den# and dis,iss t!e pra#er o$ petitioner $or t!e ann'&,ent o$ t!e @eeds o$ A.so&'te Sa&e
$or !avin% .een e9ec'ted in contravention o$ t!e &a" or o$ t!e Me,orand', o$ A%ree,ent as pact',
co,,isori',.
As re<'ired .# t!e RTC, t!e parties s'.,itted t!eir Position Papers on t!e ,atter. On 34 Marc! 322;, t!e
RTC iss'ed an Order)- %rantin% respondent TanQs O,ni.'s Motion. In !o&din% t!at .ot! petitioner and
respondent Tan ,'st pa# doc:et $ees in accordance "it! Section -7a8, R'&e )4) o$ t!e R'&es o$ Co'rt, as
a,ended, t!e RTC reasoned
It ,'st .e noted t!at 'nder para%rap! 7.8 3. o$ t!e said Section -, it is provided t!at AUIETING OF TITLE
"!ic! is an action c&assi$ied as .e#ond pec'niar# esti,ation ?s!a&& .e %overned .# para%rap! 7a8?. Hence,
t!e $i&in% $ee in an action $or @ec&aration o$ N'&&it# o$ @eed "!ic! is a&so c&assi$ied as .e#ond pec'niar#
esti,ation, ,'st .e co,p'ted .ased on t!e provision o$ Section -7A8 !erein1a.ove, in part, <'oted.
Since E!erein respondentF, Ro,eo Tan in !is Ans"er !as a co'nterc&ai, a%ainst t!e p&ainti$$, t!e $or,er
,'st &i:e"ise pa# t!e necessar# $i&&in% 7sic8 $ees as provided $or 'nder Section - 7A8 o$ A,ended
Ad,inistrative Circ'&ar No. (013224 iss'ed .# t!e S'pre,e Co'rt.)+
Conse<'ent&#, t!e RTC decreed on t!e ,atter o$ doc:etO$i&in% $ees
=HEREFORE, pre,ises considered, t!e E!erein petitionerF is !ere.# ordered to pa# additiona& $i&in% $ee
and t!e E!erein respondentF, Ro,eo Tan is a&so ordered to pa# doc:et and $i&in% $ees on !is co'nterc&ai,,
.ot! co,p'ted .ased on Section -7a8 o$ t!e S'pre,e Co'rt A,ended Ad,inistrative Circ'&ar No. (01
3224 "it!in $i$teen 7)08 da#s $ro, receipt o$ t!is Order to t!e C&er: o$ Co'rt, Re%iona& Tria& Co'rt, Na%a
Cit# and $or t!e &atter to co,p'te and to co&&ect t!e said $ees accordin%&#.)*
Petitioner ,oved32 $or t!e partia& reconsideration o$ t!e 34 Marc! 322; Order o$ t!e RTC, ar%'in% t!at
Civi& Case No. 322;122(2 "as principa&&# $or t!e ann'&,ent o$ t!e @eeds o$ A.so&'te Sa&e and, as s'c!,
incapa.&e o$ pec'niar# esti,ation. Petitioner s'.,itted t!at t!e RTC erred in app&#in% Section -7a8, R'&e
)4) o$ t!e R'&es o$ Co'rt, as a,ended, to petitionerQs $irst ca'se o$ action in its Co,p&aint in Civi& Case
No. 322;122(2.
In its Order3) dated 3* Marc! 322;, t!e RTC re$'sed to reconsider its 34 Marc! 322; Order, .ased on
t!e $o&&o"in% ratiocination
Ana&#Jin%, t!e action !erein pertains to rea& propert#, $or as ad,itted .# t!e E!erein petitionerF, ?t!e deeds
o$ sa&e in <'estion pertain to rea& propert#? 9 9 9. T!e @eeds o$ Sa&e s'.5ect o$ t!e instant case !ave
a&read# .een trans$erred in t!e na,e o$ t!e E!erein respondents Tan and O.iedoF.
Co,pared "it! A'ietin% o$ Tit&e, t!e &atter action is .ro'%!t "!en t!ere is c&o'd on t!e tit&e to rea& propert#
or an# interest t!erein or to prevent a c&o'd $ro, .ein% cast 'pon tit&e to t!e rea& propert# 7Art. 4-;, Civi&
Code o$ t!e P!i&ippines8 and t!e p&ainti$$ ,'st !ave &e%a& or e<'ita.&e tit&e to or interest in t!e rea& propert#
"!ic! is t!e s'.5ect ,atter o$ t!e action 7Art. 44-, i.id.8, and #et p&ainti$$ in AUIETING OF TITLE is
re<'ired to pa# t!e $ees in accordance "it! para%rap! 7a8 o$ Section - o$ t!e said A,ended Ad,inistrative
Circ'&ar No. (013224, !ence, "it! ,ore reason t!at t!e EpetitionerF "!o no &on%er !as tit&e to t!e rea&
properties s'.5ect o$ t!e instant case ,'st .e re<'ired to pa# t!e re<'ired $ees in accordance "it!
Section -7a8 o$ t!e A,ended Ad,inistrative Circ'&ar No. (013224 a$ore1,entioned.
F'rt!er,ore, "!i&e EpetitionerF c&ai,s t!at t!e action $or dec&aration o$ n'&&it# o$ deed o$ sa&e and
,e,orand', o$ a%ree,ent is one incapa.&e o$ pec'niar# esti,ation, !o"ever, as ar%'ed .# t!e
Erespondent TanF, t!e iss'e as to !o" ,'c! $i&in% and doc:et $ees s!o'&d .e paid "as never raised as an
iss'e in t!e case o$ R'sse&& v. Iesti&, (24 SCRA -(+.
9 9 9
=HEREFORE, t!e Motion $or Partia& Reconsideration is !ere.# @ENIE@.33
In a &etter dated )* Apri& 322;, t!e RTC C&er: o$ Co'rt co,p'ted, 'pon t!e re<'est o$ co'nse& $or t!e
petitioner, t!e additiona& doc:et $ees petitioner ,'st pa# $or in Civi& Case No. 322;122(2 as directed in t!e
a$ore1,entioned RTC Orders. Per t!e co,p'tation o$ t!e RTC C&er: o$ Co'rt, a$ter e9c&'din% t!e a,o'nt
petitioner previo's&# paid on ); Marc! 322;, petitioner ,'st sti&& pa# t!e a,o'nt o$ P-32,(*3.;2 as
doc:et $ees.3(
Petitioner, !o"ever, !ad not #et conceded, and it $i&ed a Petition $or Certiorari "it! t!e Co'rt o$ Appea&sD
t!e petition "as doc:eted as CA1G.R. SP No. *4+22. Accordin% to petitioner, t!e RTC34 acted "it! %rave
a.'se o$ discretion, a,o'ntin% to &ac: or e9cess o$ 5'risdiction, "!en it iss'ed its Orders dated 34 Marc!
322; and 3* Marc! 322; ,andatin% t!at t!e doc:etO$i&in% $ees $or Civi& Case No. 322;122(2, an action $or
ann'&,ent o$ deeds o$ sa&e, .e assessed 'nder Section -7a8, R'&e )4) o$ t!e R'&es o$ Co'rt, as
a,ended. I$ t!e Orders "o'&d not .e revo:ed, corrected, or recti$ied, petitioner "o'&d s'$$er %rave
in5'stice and irrepara.&e da,a%e.
On 33 Nove,.er 322;, t!e Co'rt o$ Appea&s pro,'&%ated its @ecision "!erein it !e&d t!at
C&ear&#, t!e petitionerQs co,p&aint invo&ves not on&# t!e ann'&,ent o$ t!e deeds o$ sa&e, .'t a&so t!e
recover# o$ t!e rea& properties identi$ied in t!e said doc',ents. In ot!er "ords, t!e o.5ectives o$ t!e
petitioner in $i&in% t!e co,p&aint "ere to cance& t!e deeds o$ sa&e and '&ti,ate&#, to recover possession o$
t!e sa,e. It is t!ere$ore a rea& action.
Conse<'ent&#, t!e additiona& doc:et $ees t!at ,'st .e paid cannot .e assessed in accordance "it!
Section -7.8. As a rea& action, Section -7a8 ,'st .e app&ied in t!e assess,ent and pa#,ent o$ t!e proper
doc:et $ee.
Res'&tant&#, t!ere is no %rave a.'se o$ discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction on t!e part o$
t!e co'rt a <'o. 6# %rave a.'se o$ discretion is ,eant capricio's and "!i,sica& e9ercise o$ 5'd%,ent as
is e<'iva&ent to &ac: o$ 5'risdiction, and ,ere a.'se o$ discretion is not eno'%! 1 it ,'st .e %rave. T!e
a.'se ,'st .e %rave and patent, and it ,'st .e s!o"n t!at t!e discretion "as e9ercised ar.itrari&# and
despotica&&#.STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
S'c! a sit'ation does not e9ist in t!is partic'&ar case. T!e evidence is ins'$$icient to prove t!at t!e co'rt a
<'o acted despotica&&# in renderin% t!e assai&ed orders. It acted proper&# and in accordance "it! &a".
Hence, error cannot .e attri.'ted to it.30
Hence, t!e $a&&o o$ t!e @ecision o$ t!e appe&&ate co'rt reads
=HEREFORE, t!e petition $or certiorari is @ENIE@. T!e assai&ed Orders o$ t!e co'rt a <'o are
AFFIRME@.3;
=it!o't see:in% reconsideration o$ t!e $ore%oin% @ecision "it! t!e Co'rt o$ Appea&s, petitioner $i&ed its
Petition $or Revie" on Certiorari .e$ore t!is Co'rt, "it! a &one assi%n,ent o$ error, to "it
)+. T!e !erein petitioner ,ost respect$'&&# s'.,its t!at t!e Co'rt o$ Appea&s co,,itted a %rave and
serio's reversi.&e error in a$$ir,in% t!e assai&ed Orders o$ t!e Re%iona& Tria& Co'rt "!ic! are c&ear&#
contrar# to t!e prono'nce,ent o$ t!is Honora.&e Co'rt in t!e case o$ Spo'ses @e Leon v. Co'rt o$
Appea&s, G.R. No. )24-*;, Marc! ;, )**+, not to ,ention t!e $act t!at i$ t!e said 5'd%,ent is a&&o"ed to
stand and not recti$ied, t!e sa,e "o'&d res'&t in %rave in5'stice and irrepara.&e da,a%e to !erein
petitioner in vie" o$ t!e pro!i.itive a,o'nt assessed as a conse<'ence o$ said Orders.3-
In Manc!ester @eve&op,ent Corporation v. Co'rt o$ Appea&s,3+ t!e Co'rt e9p&icit&# prono'nced t!at ?EtF!e
co'rt ac<'ires 5'risdiction over an# case on&# 'pon t!e pa#,ent o$ t!e prescri.ed doc:et $ee.? Hence, t!e
pa#,ent o$ doc:et $ees is not on&# ,andator#, .'t a&so 5'risdictiona&.
In S'n Ins'rance O$$ice, Ltd. 7SIOL8 v. As'ncion,3* t!e Co'rt &aid do"n %'ide&ines $or t!e i,p&e,entation
o$ its previo's prono'nce,ent in Manc!ester 'nder partic'&ar circ',stances, to "it
). It is not si,p&# t!e $i&in% o$ t!e co,p&aint or appropriate initiator# p&eadin%, .'t t!e pa#,ent o$ t!e
prescri.ed doc:et $ee, t!at vests a tria& co'rt "it! 5'risdiction over t!e s'.5ect ,atter or nat're o$ t!e
action. =!ere t!e $i&in% o$ t!e initiator# p&eadin% is not acco,panied .# pa#,ent o$ t!e doc:et $ee, t!e
co'rt ,a# a&&o" pa#,ent o$ t!e $ee "it!in a reasona.&e ti,e .'t in no case .e#ond t!e app&ica.&e
prescriptive or re%&e,entar# period.
3. T!e sa,e r'&e app&ies to per,issive co'nterc&ai,s, t!ird1part# c&ai,s and si,i&ar p&eadin%s, "!ic! s!a&&
not .e considered $i&ed 'nti& and 'n&ess t!e $i&in% $ee prescri.ed t!ere$or is paid. T!e co'rt ,a# a&so a&&o"
pa#,ent o$ said $ee "it!in a reasona.&e ti,e .'t a&so in no case .e#ond its app&ica.&e prescriptive or
re%&e,entar# period.
(. =!ere t!e tria& co'rt ac<'ires 5'risdiction over a c&ai, .# t!e $i&in% o$ t!e appropriate p&eadin% and
pa#,ent o$ t!e prescri.ed $i&in% $ee .'t, s'.se<'ent&#, t!e 5'd%,ent a"ards a c&ai, not speci$ied in t!e
p&eadin%, or i$ speci$ied t!e sa,e !as .een &e$t $or deter,ination .# t!e co'rt, t!e additiona& $i&in% $ee
t!ere$or s!a&& constit'te a &ien on t!e 5'd%,ent. It s!a&& .e t!e responsi.i&it# o$ t!e C&er: o$ Co'rt or !is
d'&# a't!oriJed dep't# to en$orce said &ien and assess and co&&ect t!e additiona& $ee.
In t!e Petition at .ar, t!e RTC $o'nd, and t!e Co'rt o$ Appea&s a$$ir,ed, t!at petitioner did not pa# t!e
correct a,o'nt o$ doc:et $ees $or Civi& Case No. 322;122(2. Accordin% to .ot! t!e tria& and appe&&ate
co'rts, petitioner s!o'&d pa# doc:et $ees in accordance "it! Section -7a8, R'&e )4) o$ t!e R'&es o$ Co'rt,
as a,ended. Consistent "it! t!e &i.era& tenor o$ S'n Ins'rance, t!e RTC, instead o$ dis,issin% o'tri%!t
petitionerQs Co,p&aint in Civi& Case No. 322;122(2, %ranted petitioner ti,e to pa# t!e additiona& doc:et
$ees. @espite t!e see,in% ,'ni$icence o$ t!e RTC, petitioner re$'sed to pa# t!e additiona& doc:et $ees
assessed a%ainst it, .e&ievin% t!at it !ad a&read# paid t!e correct a,o'nt .e$ore, p'rs'ant to Section -7.8
7)8, R'&e )4) o$ t!e R'&es o$ Co'rt, as a,ended.
Re&evant to t!e present controvers# are t!e $o&&o"in% provisions 'nder R'&e )4) o$ t!e R'&es o$ Co'rt, as
a,ended .# A.M. No. 24131241SC(2 and S'pre,e Co'rt A,ended Ad,inistrative Circ'&ar No. (013224()

SEC. -. C&er:s o$ Re%iona& Tria& Co'rts.Q

7a8 For $i&in% an action or a per,issive OR COMPULSORB co'nterc&ai,, CROSS1CLAIM, or ,one# c&ai,
a%ainst an estate not .ased on 5'd%,ent, or $or $i&in% a t!ird1part#, $o'rt!1part#, etc. co,p&aint, or a
co,p&aint1in1intervention, i$ t!e tota& s', c&ai,ed, INCLUSIIE OF INTERESTS, PENALTIES,
SURCHARGES, @AMAGES OF =HATEIER NIN@, AN@ ATTORNEBQS FEES, LITIGATIO NEHPENSES
AN@ COSTS andOor in cases invo&vin% propert#, t!e FAIR MARNET va&'e o$ t!e REAL propert# in
&iti%ation STATE@ IN THE CURRENT TAH @ECLARATION OR CURRENT cONAL IALUATION OF THE
6UREAU OF INTERNAL REIENUE, =HICHEIER IS HIGHER, OR IF THERE IS NONE, THE STATE@
IALUE OF THE PROPERTB IN LITIGATION OR THE IALUE OF THE PERSONAL PROPERTB IN
LITIGATION OR THE IALUE OF THE PERSONAL PROPERTB IN LITIGATION AS ALLEGE@ 6B THE
CLAIMANT, is
ETa.&e o$ $ees o,itted.F
I$ t!e action invo&ves .ot! a ,one# c&ai, and re&ie$ pertainin% to propert#, t!en THE $ees "i&& .e c!ar%ed
on .ot! t!e a,o'nts c&ai,ed and va&'e o$ propert# .ased on t!e $or,'&a prescri.ed in t!is para%rap! a.
7.8 For $i&in%
). Actions "!ere t!e va&'e o$ t!e s'.5ect ,atter cannot .e esti,ated
3. Specia& civi& actions, e9cept 5'dicia& $orec&os're o$ ,ort%a%e, EHPROPRIATION PROCEE@INGS,
PARTITION AN@ AUIETING OF TITLE "!ic! "i&&
(. A&& ot!er actions not invo&vin% propert#
ETa.&e o$ $ees o,itted.F
T!e doc:et $ees 'nder Section -7a8, R'&e )4), in cases invo&vin% rea& propert# depend on t!e $air ,ar:et
va&'e o$ t!e sa,e t!e !i%!er t!e va&'e o$ t!e rea& propert#, t!e !i%!er t!e doc:et $ees d'e. In contrast,
Section -7.87)8, R'&e )4) i,poses a $i9ed or $&at rate o$ doc:et $ees on actions incapa.&e o$ pec'niar#
esti,ation.
In order to reso&ve t!e iss'e o$ "!et!er petitioner paid t!e correct a,o'nt o$ doc:et $ees, it is necessar# to
deter,ine t!e tr'e nat're o$ its Co,p&aint. T!e dict', ad!ered to in t!is 5'risdiction is t!at t!e nat're o$
an action is deter,ined .# t!e a&&e%ations in t!e .od# o$ t!e p&eadin% or Co,p&aint itse&$, rat!er t!an .# its
tit&e or !eadin%.(3 Ho"ever, t!e Co'rt $inds it necessar#, in ascertainin% t!e tr'e nat're o$ Civi& Case No.
322;122(2, to ta:e into acco'nt si%ni$icant $acts and circ',stances .e#ond t!e Co,p&aint o$ petitioner,
$acts and circ',stances "!ic! petitioner $ai&ed to state in its Co,p&aint .'t "ere disc&osed in t!e
pre&i,inar# proceedin%s .e$ore t!e co'rt a <'o.
Petitioner persistent&# avers t!at its Co,p&aint in Civi& Case No. 322;122(2 is pri,ari&# $or t!e ann'&,ent
o$ t!e @eeds o$ A.so&'te Sa&e. 6ased on t!e a&&e%ations and re&ie$s in t!e Co,p&aint a&one, one "o'&d %et
t!e i,pression t!at t!e tit&es to t!e s'.5ect rea& properties sti&& rest "it! petitionerD and t!at t!e interest o$
respondents Tan and O.iedo in t!e sa,e &ies on&# in t!e @eeds o$ A.so&'te Sa&e so'%!t to .e ann'&&ed.
=!at petitioner $ai&ed to ,ention in its Co,p&aint "as t!at respondents Tan and O.iedo a&read# !ad t!e
Me,orand', o$ A%ree,ent, "!ic! c&ear&# provided $or t!e e9ec'tion o$ t!e @eeds o$ A.so&'te Sa&e,
re%istered on t!e TCTs over t!e $ive parce&s o$ &and, t!en sti&& in t!e na,e o$ petitioner. A$ter respondents
Tan and O.iedo !ad t!e @eeds o$ A.so&'te Sa&e notariJed on ( Can'ar# 322; and presented t!e sa,e to
Re%ister o$ @eeds $or Na%a Cit# on + Marc! 322;, t!e# "ere a&read# iss'ed TCTs over t!e rea& properties
in <'estion, in t!eir o"n na,es. Respondents Tan and O.iedo !ave a&so ac<'ired possession o$ t!e said
properties, ena.&in% t!e,, .# petitionerQs o"n ad,ission, to de,o&is! t!e i,prove,ents t!ereon.
It is, t!'s, s'spect t!at petitioner :ept ,', a.o't t!e a$ore1,entioned $acts and circ',stances "!en t!e#
!ad a&read# ta:en p&ace .e$ore it $i&ed its Co,p&aint .e$ore t!e RTC on ); Marc! 322;. Petitioner never
e9pressed s'rprise "!en s'c! $acts and circ',stances "ere esta.&is!ed .e$ore t!e RTC, nor ,oved to
a,end its Co,p&aint accordin%&#.STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
Even t!o'%! t!e Me,orand', o$ A%ree,ent "as s'pposed to !ave &on% .een re%istered on its TCTs
over t!e $ive parce&s o$ &and, petitioner did not pra# $or t!e re,ova& o$ t!e sa,e as a c&o'd on its tit&e. In
t!e sa,e vein, a&t!o'%! petitioner a&&e%ed t!at respondents Tan and O.iedo $orci.&# too: p!#sica&
possession o$ t!e s'.5ect rea& properties, petitioner did not see: t!e restoration o$ s'c! possession to
itse&$. And despite &earnin% t!at respondents Tan and O.iedo a&read# sec'red TCTs over t!e s'.5ect
properties in t!eir na,es, petitioner did not as: $or t!e cance&&ation o$ said tit&es. T!e on&# &o%ica& and
reasona.&e e9p&anation is t!at petitioner is re&'ctant to .rin% to t!e attention o$ t!e Co'rt certain $acts and
circ',stances, :eepin% its Co,p&aint sa$e&# "orded, so as to instit'te on&# an action $or ann'&,ent o$
@eeds o$ A.so&'te Sa&e. Petitioner de&i.erate&# avoided raisin% iss'es on t!e tit&e and possession o$ t!e
rea& properties t!at ,a# &ead t!e Co'rt to c&assi$# its case as a rea& action.
No ,atter !o" $astidio's&# petitioner atte,pts to concea& t!e,, t!e a&&e%ations and re&ie$s it so'%!t in its
Co,p&aint in Civi& Case No. 322;122(2 appears to .e '&ti,ate&# a rea& action, invo&vin% as t!e# do t!e
recover# .# petitioner o$ its tit&e to and possession o$ t!e $ive parce&s o$ &and $ro, respondents Tan and
O.iedo.
A rea& action is one in "!ic! t!e p&ainti$$ see:s t!e recover# o$ rea& propert#D or, as indicated in "!at is
no" Section ), R'&e 4 o$ t!e R'&es o$ Co'rt, a rea& action is an action a$$ectin% tit&e to or recover# o$
possession o$ rea& propert#.((
Section -, R'&e )4) o$ t!e R'&es o$ Co'rt, prior to its a,end,ent .# A.M. No. 24131241SC, !ad a speci$ic
para%rap! %overnin% t!e assess,ent o$ t!e doc:et $ees $or rea& action, to "it
In a rea& action, t!e assessed va&'e o$ t!e propert#, or i$ t!ere is none, t!e esti,ated va&'e t!ereo$ s!a&&
.e a&&e%ed .# t!e c&ai,ant and s!a&& .e t!e .asis in co,p'tin% t!e $ees.
It "as in accordance "it! t!e a$ore1<'oted provision t!at t!e Co'rt, in Goc!an v. Goc!an,(4 !e&d t!at
a&t!o'%! t!e caption o$ t!e co,p&aint $i&ed .# t!erein respondents Mercedes Goc!an, et a&. "it! t!e RTC
"as deno,inated as one $or ?speci$ic per$or,ance and da,a%es,? t!e re&ie$ so'%!t "as t!e conve#ance
or trans$er o$ rea& propert#, or '&ti,ate&#, t!e e9ec'tion o$ deeds o$ conve#ance in t!eir $avor o$ t!e rea&
properties en',erated in t!e provisiona& ,e,orand', o$ a%ree,ent. Under t!ese circ',stances, t!e
case .e$ore t!e RTC "as act'a&&# a rea& action, a$$ectin% as it did tit&e to or possession o$ rea& propert#.
Conse<'ent&#, t!e .asis $or deter,inin% t!e correct doc:et $ees s!a&& .e t!e assessed va&'e o$ t!e
propert#, or t!e esti,ated va&'e t!ereo$ as a&&e%ed in t!e co,p&aint. 6't since Mercedes Goc!an $ai&ed to
a&&e%e in t!eir co,p&aint t!e va&'e o$ t!e rea& properties, t!e Co'rt $o'nd t!at t!e RTC did not ac<'ire
5'risdiction over t!e sa,e $or non1pa#,ent o$ t!e correct doc:et $ees.
Li:e"ise, in Siapno v. Mana&o,(0 t!e Co'rt disre%arded t!e tit&eOdeno,ination o$ t!erein p&ainti$$ Mana&oQs
a,ended petition as one $or Manda,'s "it! Revocation o$ Tit&e and @a,a%esD and ad5'd%ed t!e sa,e to
.e a rea& action, t!e $i&in% $ees $or "!ic! s!o'&d !ave .een co,p'ted .ased on t!e assessed va&'e o$ t!e
s'.5ect propert# or, i$ t!ere "as none, t!e esti,ated va&'e t!ereo$. T!e Co'rt e9po'nded in Siapno t!at
In !is a,ended petition, respondent Mana&o pra#ed t!at NTAQs sa&e o$ t!e propert# in disp'te to Stand$ord
East Rea&t# Corporation and t!e tit&e iss'ed to t!e &atter on t!e .asis t!ereo$, .e dec&ared n'&& and void. In
a ver# rea& sense, a&.eit t!e a,ended petition is st#&ed as one $or ?Manda,'s "it! Revocation o$ Tit&e and
@a,a%es,? it is, at .otto,, a s'it to recover $ro, Stand$ord t!e rea&t# in <'estion and to vest in respondent
t!e o"ners!ip and possession t!ereo$. In s!ort, t!e a,ended petition is in rea&it# an action in res or a rea&
action. O'r prono'nce,ent in Fort'ne Motors 7P!i&s.8, Inc. v. Co'rt o$ Appea&s is instr'ctive. T!ere, "e
said
A pra#er $or ann'&,ent or rescission o$ contract does not operate to e$$ace t!e tr'e o.5ectives and nat're
o$ t!e action "!ic! is to recover rea& propert#. 7Inton, et a&., v. A'intan, +) P!i&. *-, )*4+8
An action $or t!e ann'&,ent or rescission o$ a sa&e o$ rea& propert# is a rea& action. Its pri,e o.5ective is to
recover said rea& propert#. 7Gavieres v. Sanc!eJ, *4 P!i&. -;2, )*048
An action to ann'& a rea& estate ,ort%a%e $orec&os're sa&e is no di$$erent $ro, an action to ann'& a private
sa&e o$ rea& propert#. 7M'XWoJ v. L&a,as, +- P!i&. -(-, )*028.
=!i&e it is tr'e t!at petitioner does not direct&# see: t!e recover# o$ tit&e or possession o$ t!e propert# in
<'estion, !is action $or ann'&,ent o$ sa&e and !is c&ai, $or da,a%es are c&ose&# intert"ined "it! t!e iss'e
o$ o"ners!ip o$ t!e .'i&din% "!ic!, 'nder t!e &a", is considered i,,ova.&e propert#, t!e recover# o$
"!ic! is petitionerQs pri,ar# o.5ective. T!e preva&ent doctrine is t!at an action $or t!e ann'&,ent or
rescission o$ a sa&e o$ rea& propert# does not operate to e$$ace t!e $'nda,enta& and pri,e o.5ective and
nat're o$ t!e case, "!ic! is to recover said rea& propert#. It is a rea& action.
Un$ort'nate&#, and evident&# to evade pa#,ent o$ t!e correct a,o'nt o$ $i&in% $ee, respondent Mana&o
never a&&e%ed in t!e .od# o$ !is a,ended petition, ,'c! &ess in t!e pra#er portion t!ereo$, t!e assessed
va&'e o$ t!e s'.5ect res, or, i$ t!ere is none, t!e esti,ated va&'e t!ereo$, to serve as .asis $or t!e receivin%
c&er: in co,p'tin% and arrivin% at t!e proper a,o'nt o$ $i&in% $ee d'e t!ereon, as re<'ired 'nder Section -
o$ t!is Co'rtQs en .anc reso&'tion o$ 24 Septe,.er )**2 7Re Proposed A,end,ents to R'&e )4) on
Le%a& Fees8.
Even t!e a,ended petition, t!ere$ore, s!o'&d !ave .een e9p'n%ed $ro, t!e records.
In $ine, "e r'&e and so !o&d t!at t!e tria& co'rt never ac<'ired 5'risdiction over its Civi& Case No. A1*01
34-*).(;
It "as in Serrano v. @e&ica,(- !o"ever, t!at t!e Co'rt dea&t "it! a co,p&aint t!at .ore t!e ,ost si,i&arit#
to t!e one at .ar. T!erein respondent @e&ica averred t!at 'nd'e in$&'ence, coercion, and inti,idation "ere
e9erted 'pon !i, .# t!erein petitioners Serrano, et a&. to e$$ect trans$er o$ !is properties. T!'s, @e&ica $i&ed
a co,p&aint .e$ore t!e RTC a%ainst Serrano, et a&., pra#in% t!at t!e specia& po"er o$ attorne#, t!e
a$$idavit, t!e ne" tit&es iss'ed in t!e na,es o$ Serrano, et a&., and t!e contracts o$ sa&e o$ t!e disp'ted
properties .e cance&&edD t!at Serrano, et a&. .e ordered to pa# @e&ica, 5oint&# and severa&&#, act'a&, ,ora&
and e9e,p&ar# da,a%es in t!e a,o'nt o$ P322,222.22, as "e&& as attorne#Qs $ee o$ P322,222.22 and
costs o$ &iti%ationD t!at a TRO and a "rit o$ pre&i,inar# in5'nction .e iss'ed orderin% Serrano, et a&. to
i,,ediate&# restore !i, to !is possession o$ t!e parce&s o$ &and in <'estionD and t!at a$ter tria&, t!e "rit o$
in5'nction .e ,ade per,anent. T!e Co'rt dis,issed @e&icaQs co,p&aint $or t!e $o&&o"in% reasons
A care$'& e9a,ination o$ respondentQs co,p&aint is t!at it is a rea& action. In Paderan%a v. 6'issan, "e
!e&d t!at ?in a rea& action, t!e p&ainti$$ see:s t!e recover# o$ rea& propert#, or, as stated in Section 37a8,
R'&e 4 o$ t!e Revised R'&es o$ Co'rt, a rea& action is one Qa$$ectin% tit&e to rea& propert# or $or t!e recover#
o$ possession o$, or $or partition or conde,nation o$, or $orec&os're o$ a ,ort%a%e on a rea& propert#.Q ?
O.vio's&#, respondentQs co,p&aint is a rea& action invo&vin% not on&# t!e recover# o$ rea& properties, .'t
&i:e"ise t!e cance&&ation o$ t!e tit&es t!ereto.
Considerin% t!at respondentQs co,p&aint is a rea& action, t!e R'&e re<'ires t!at ?t!e assessed va&'e o$ t!e
propert#, or i$ t!ere is none, t!e esti,ated va&'e t!ereo$ s!a&& .e a&&e%ed .# t!e c&ai,ant and s!a&& .e t!e
.asis in co,p'tin% t!e $ees.?
=e note, !o"ever, t!at neit!er t!e ?assessed va&'e? nor t!e ?esti,ated va&'e? o$ t!e <'estioned parce&s
o$ &and "ere a&&e%ed .# respondent in .ot! !is ori%ina& and a,ended co,p&aint. =!at !e stated in !is
a,ended co,p&aint is t!at t!e disp'ted rea&ties !ave a ?6IR Jona& va&'ation? o$ P),322.22 per s<'are
,eter. Ho"ever, t!e a&&e%ed ?6IR Jona& va&'ation? is not t!e :ind o$ va&'ation re<'ired .# t!e R'&e. It is
t!e assessed va&'e o$ t!e rea&t#. Havin% 'tter&# $ai&ed to co,p&# "it! t!e re<'ire,ent o$ t!e R'&e t!at !e
s!a&& a&&e%e in !is co,p&aint t!e assessed va&'e o$ !is rea& properties in controvers#, t!e correct doc:et
$ee cannot .e co,p'ted. As s'c!, !is co,p&aint s!o'&d not !ave .een accepted .# t!e tria& co'rt. =e
t!'s r'&e t!at it !as not ac<'ired 5'risdiction over t!e present case $or $ai&'re o$ !erein respondent to pa#
t!e re<'ired doc:et $ee. On t!is %ro'nd a&one, respondentQs co,p&aint is v'&nera.&e to dis,issa&.(+
6r's!in% aside t!e si%ni$icance o$ Serrano, petitioner ar%'es t!at said decision, rendered .# t!e T!ird
@ivision o$ t!e Co'rt, and not .# t!e Co'rt en .anc, cannot ,odi$# or reverse t!e doctrine &aid do"n in
Spo'ses @e Leon v. Co'rt o$ Appea&s.(* Petitioner re&ies !eavi&# on t!e dec&aration o$ t!is Co'rt in
Spo'ses @e Leon t!at an action $or ann'&,ent or rescission o$ a contract o$ sa&e o$ rea& propert# is
incapa.&e o$ pec'niar# esti,ation.
T!e Co'rt, !o"ever, does not perceive a contradiction .et"een Serrano and t!e Spo'ses @e Leon. T!e
Co'rt ca&&s attention to t!e $o&&o"in% state,ent in Spo'ses @e Leon ?A revie" o$ t!e 5'rispr'dence o$ t!is
Co'rt indicates t!at in deter,inin% "!et!er an action is one t!e s'.5ect ,atter o$ "!ic! is not capa.&e o$
pec'niar# esti,ation, t!is Co'rt !as adopted t!e criterion o$ $irst ascertainin% t!e nat're o$ t!e principa&
action or re,ed# so'%!t.? Necessari&#, t!e deter,ination ,'st .e done on a case1to1case .asis,
dependin% on t!e $acts and circ',stances o$ eac!. =!at petitioner convenient&# i%nores is t!at in
Spo'ses @e Leon, t!e action t!erein t!at private respondents instit'ted .e$ore t!e RTC "as ?so&e&# $or
ann'&,ent or rescission? o$ t!e contract o$ sa&e over a rea& propert#.42 T!ere appeared to .e no trans$er
o$ tit&e or possession to t!e adverse part#. T!eir co,p&aint si,p&# pra#ed $or
). Orderin% t!e n'&&i$ication or rescission o$ t!e Contract o$ Conditiona& Sa&e 7S'pp&e,entar# A%ree,ent8
$or !avin% vio&ated t!e ri%!ts o$ p&ainti$$s 7private respondents8 %'aranteed to t!e, 'nder Artic&e ++; o$ t!e
Civi& Code andOor vio&ation o$ t!e ter,s and conditions o$ t!e said contract.
3. @ec&arin% void a. initio t!e @eed o$ A.so&'te Sa&e $or .ein% a.so&'te&# si,'&atedD andcra&a"&i.rar#
(. Orderin% de$endants 7petitioners8 to pa# p&ainti$$s 7private respondents8 attorne#Qs $ees in t!e a,o'nt o$
P)22,222.22.4)
As t!is Co'rt !as previo's&# disc'ssed !erein, t!e nat're o$ Civi& Case No. 322;122(2 instit'ted .#
petitioner .e$ore t!e RTC is c&oser to t!at o$ Serrano, rat!er t!an o$ Spo'ses @e Leon, !ence, ca&&in% $or
t!e app&ication o$ t!e r'&in% o$ t!e Co'rt in t!e $or,er, rat!er t!an in t!e &atter.
It is a&so i,portant to note t!at, "it! t!e a,end,ents introd'ced .# A.M. No. 24131241SC, "!ic! .eca,e
e$$ective on ); A'%'st 3224, t!e para%rap! in Section -, R'&e )4) o$ t!e R'&es o$ Co'rt, pertainin%
speci$ica&&# to t!e .asis $or co,p'tation o$ doc:et $ees $or rea& actions "as de&eted. Instead, Section -7)8
o$ R'&e )4), as a,ended, provides t!at ?in cases invo&vin% rea& propert#, t!e FAIR MARNET va&'e o$ t!e
REAL propert# in &iti%ation STATE@ IN THE CURRENT TAH @ECLARATION OR CURRENT cONAL
IALUATION OF THE 6UREAU OF INTERNAL REIENUE, =HICH IS HIGHER, OR IF THERE IS NONE,
THE STATE@ IALUE OF THE PROPERTB IN LITIGATION 9 9 9? s!a&& .e t!e .asis $or t!e co,p'tation
o$ t!e doc:et $ees. =o'&d s'c! an a,end,ent !ave an i,pact on Goc!an, Siapno, and SerranoR T!e
Co'rt r'&es in t!e ne%ative.
A rea& action indisp'ta.&# invo&ves rea& propert#. T!e doc:et $ees $or a rea& action "o'&d sti&& .e
deter,ined in accordance "it! t!e va&'e o$ t!e rea& propert# invo&ved t!ereinD t!e on&# di$$erence is in
"!at constit'tes t!e accepta.&e va&'e. In co,p'tin% t!e doc:et $ees $or cases invo&vin% rea& properties,
t!e co'rts, instead o$ re&#in% on t!e assessed or esti,ated va&'e, "o'&d no" .e 'sin% t!e $air ,ar:et
va&'e o$ t!e rea& properties 7as stated in t!e Ta9 @ec&aration or t!e cona& Ia&'ation o$ t!e 6'rea' o$
Interna& Reven'e, "!ic!ever is !i%!er8 or, in t!e a.sence t!ereo$, t!e stated va&'e o$ t!e sa,e.
In s',, t!e Co'rt $inds t!at t!e tr'e nat're o$ t!e action instit'ted .# petitioner a%ainst respondents is t!e
recover# o$ tit&e to and possession o$ rea& propert#. It is a rea& action necessari&# invo&vin% rea& propert#,
t!e doc:et $ees $or "!ic! ,'st .e co,p'ted in accordance "it! Section -7)8, R'&e )4) o$ t!e R'&es o$
Co'rt, as a,ended. T!e Co'rt o$ Appea&s, t!ere$ore, did not co,,it an# error in a$$ir,in% t!e RTC Orders
re<'irin% petitioner to pa# additiona& doc:et $ees $or its Co,p&aint in Civi& Case No. 322;122(2.
T!e Co'rt does not %ive ,'c! credence to t!e a&&e%ation o$ petitioner t!at i$ t!e 5'd%,ent o$ t!e Co'rt o$
Appea&s is a&&o"ed to stand and not recti$ied, it "o'&d res'&t in %rave in5'stice and irrepara.&e in5'r# to
petitioner in vie" o$ t!e pro!i.itive a,o'nt assessed a%ainst it. It is a s"eepin% assertion "!ic! &ac:s
evidentiar# s'pport. Undenia.&#, .e$ore t!e Co'rt can conc&'de t!at t!e a,o'nt o$ doc:et $ees is indeed
pro!i.itive $or a part#, it "o'&d !ave to &oo: into t!e $inancia& capacit# o$ said part#. It .a$$&es t!is Co'rt t!at
!erein petitioner, !avin% t!e capacit# to enter into ,'&ti1,i&&ion transactions, no" sta&&s at pa#in%
P-32,(*3.;2 additiona& doc:et $ees so it co'&d c!a,pion .e$ore t!e co'rts its ri%!ts over t!e disp'ted rea&
properties. Moreover, even t!o'%! t!e Co'rt e9e,pts individ'a&s, as indi%ent or pa'per &iti%ants, $ro,
pa#in% doc:et $ees, it !as never e9tended s'c! an e9e,ption to a corporate entit#.
=HEREFORE, pre,ises considered, t!e instant Petition $or Revie" is !ere.# @ENIE@. T!e @ecision,
dated 33 Nove,.er 322;, o$ t!e Co'rt o$ Appea&s in CA1G.R. SP No. *4+22, "!ic! a$$ir,ed t!e Orders
dated 34 Marc! 322; and 3* Marc! 322; o$ t!e RTC, 6ranc! 33, o$ Na%a Cit#, in Civi& Case No. RTC1
322;122(2, orderin% petitioner R'.# S!e&ter 6'i&ders and Rea&t# @eve&op,ent Corporation to pa#
additiona& doc:etO$i&in% $ees, co,p'ted .ased on Section -7a8, R'&e )4) o$ t!e R'&es o$ Co'rt, as
a,ended, is !ere.# AFFIRME@. Costs a%ainst t!e petitioner.
FRANCISCO I. CHAIEc and PEOPLE OF THE PHILIPPINES, Petitioners, v. COURT OF APPEALS,
RAFAEL 6ASNIXhAS and RICAR@O MANAPAT, Respondents.
An In$or,ation $or Li.e& dated 3; C'ne )**0 "as $i&ed .e$ore t!e Re%iona& Tria& Co'rt 7RTC8 o$ Mani&a
a%ainst private respondents Ra$ae& 6as:inas and Ricardo Manapat, "it! petitioner Francisco C!aveJ as
t!e co,p&ainant. T!e In$or,ation reads in part
?T!at on or a.o't Marc! )**0, in t!e Cit# o$ Mani&a, P!i&ippines, t!e said acc'sed E6as:inas and
ManapatF conspirin% and con$ederatin% "it! ot!ers "!ose tr'e na,es, rea& identities and present
"!erea.o'ts are sti&& 'n:no"n and !e&pin% one anot!er, "it! ,a&icio's intent o$ i,peac!in% t!e !onest#,
virt'e, c!aracter and rep'tation o$ one FRANCISCO I. CHAIEc, $or,er So&icitor Genera& o$ t!e
P!i&ippines, and "it! t!e evident p'rpose o$ in5'rin% and e9posin% !i, to p'.&ic ridic'&e, !atred and
conte,pt, did t!en and t!ere "i&&$'&&#, 'n&a"$'&&# and ,a&icio's&# ca'se to .e p'.&is!ed in ?S,art Fi&e,? a
,a%aJine o$ %enera& circ'&ation in Mani&a, and in t!eir respective capacit# as Editor1in1C!ie$ and A't!or1
Reporter, t!e $o&&o"in%, to "it
9 9 9
"it! "!ic! p'.&is!ed artic&es, t!e said acc'sed ,eant and intended to conve#, as in $act t!e# did ,ean
and conve# $a&se and ,a&icio's i,p'tations o$ a de$ect, vice and cri,e, "!ic! insin'ations and
i,p'tations as t!e acc'sed "e&& :ne" are entire&# $a&se and 'ntr'e and "it!o't t!e $o'ndation in $act
"!atsoever, and tend to i,peac!, .es,irc! and destro# t!e %ood na,e, c!aracter and rep'tation o$ said
FRANCISCO I. CHAIEc, as in $act, !e "as e9posed to dis!onor, discredit, p'.&ic !atred, conte,pt and
ridic'&e.
CONTRARB TO LA=.)
Private respondents ,oved to <'as! t!e In$or,ation, as "e&& as t!e correspondin% "arrants o$ arrest
s'.se<'ent&# iss'ed. Ho"ever, t!ese ,otions "ere denied .# t!e RTC o$ Mani&a, 6ranc! );, in an Order
dated () A'%'st )**0.3 Private respondents t!en $i&ed a Petition $or Certiorari "it! t!e Co'rt o$ Appea&s,
assai&in% t!e () A'%'st )**0 Order. T!e petition "as %ranted in a @ecision dated 3) @ece,.er )**0,
!ence t!e present petition.
T!e cr'9 o$ t!e ,atter revo&ves aro'nd "!et!er t!e a.ove1<'oted In$or,ation is s'$$icient to s'stain a
c!ar%e $or &i.e&, considerin% t!e $o&&o"in% re<'ire,ent i,posed .# Artic&e (;2 o$ t!e Revised Pena& Code,
as a,ended .# Rep. Act No. 4(;(
Artic&e (;2. Persons responsi.&e. An# person "!o s!a&& p'.&is!, e9!i.it or ca'se t!e p'.&ication or
e9!i.ition o$ an# de$a,ation in "ritin% or .# si,i&ar ,eans, s!a&& .e responsi.&e $or t!e sa,e.
T!e a't!or or editor o$ a .oo: or pa,p!&et, or t!e editor or .'siness ,ana%er o$ a dai&# ne"spaper,
,a%aJine or seria& p'.&ication, s!a&& .e responsi.&e $or t!e de$a,ations contained t!erein to t!e sa,e
e9tent as i$ !e "ere t!e a't!or t!ereo$.
T!e cri,ina& action and civi& action $or da,a%es in cases o$ "ritten de$a,ations, as provided $or in t!is
c!apter s!a&& .e $i&ed si,'&taneo's&# or separate&# "it! t!e co'rt o$ $irst instance o$ t!e province or cit#
"!ere t!e &i.e&o's artic&e is printed and $irst p'.&is!ed or "!ere an# o$ t!e o$$ended parties act'a&&#
resides at t!e ti,e o$ t!e co,,ission o$ t!e o$$ense Provided, !o"ever, T!at "!ere one o$ t!e o$$ended
parties is a p'.&ic o$$icer "!ose o$$ice is in t!e Cit# o$ Mani&a at t!e ti,e o$ t!e co,,ission o$ t!e o$$ense,
t!e action s!a&& .e $i&ed in t!e Co'rt o$ First Instance o$ t!e Cit# o$ Mani&a or o$ t!e cit# or province "!ere
t!e &i.e&o's artic&e is printed and $irst p'.&is!ed, and in case s'c! p'.&ic o$$icer does not !o&d o$$ice in t!e
Cit# o$ Mani&a, t!e action s!a&& .e $i&ed in t!e Co'rt o$ First Instance o$ t!e province or cit# "!ere !e !e&d
o$$ice at t!e ti,e o$ t!e co,,ission o$ t!e o$$ense or "!ere t!e &i.e&o's artic&e is printed and $irst
p'.&is!ed and in case one o$ t!e o$$ended parties is a private individ'a&, t!e action s!a&& .e $i&ed in t!e
Co'rt o$ First Instance o$ t!e province or cit# "!ere !e act'a&&# resides at t!e ti,e o$ t!e co,,ission o$
t!e o$$ense or "!ere t!e &i.e&o's ,atter is printed and $irst p'.&is!ed 9 9 9. 7E,p!asis s'pp&ied.8
Re$errin% to t!e $act t!at t!e In$or,ation a%ainst private respondents states t!at t!e &i.e&o's ,atter "as
?ca'sed to .e p'.&is!ed in S,art Fi&e, a ,a%aJine o$ %enera& circ'&ation in Mani&a,? t!e Co'rt o$ Appea&s
dee,ed t!e cases o$ A%.a#ani v. Sa#o( and Soriano v. IAC4 as contro&&in%. 6ased on t!e doctrines
prono'nced in said cases, t!e appe&&ate co'rt !e&d t!at t!e In$or,ation $ai&ed to a&&e%e "!ere t!e "ritten
de$a,ation "as ?printed and $irst p'.&is!ed,? an a&&e%ation sine <'a non ?i$ t!e circ',stances as to "!ere
t!e &i.e& "as printed and $irst p'.&is!ed is 'sed as t!e .asis o$ t!e ven'e o$ t!e p'.&ication.?0 It "as
o.served t!at ?ven'e o$ &i.e& cases "!ere t!e co,p&ainant is a private person is eit!er in an# o$ on&# t"o
p&aces, na,e&# 7)8 "!ere t!e s'.5ect artic&e "as printed and $irst p'.&is!edD and 738 "!ere co,p&ainant o$
t!e co,,ission act'a&&# resides at t!e ti,e o$ t!e co,,ission o$ t!e o$$ense.? T!e In$or,ation, it "as
noted, did not indicate t!at t!e &i.e&o's artic&es "ere printed or $irst p'.&is!ed in Mani&a, or t!at petitioner
resided in Mani&a at t!e ti,e o$ t!e p'.&ication o$ t!e artic&es.
T!e Co'rt o$ Appea&s $'rt!er o.served t!at even d'rin% t!e pre&i,inar# investi%ation, private respondents
!ad a&read# interposed t!at S,art Fi&e "as act'a&&# printed and $irst p'.&is!ed in t!e Cit# o$ Ma:ati, and
t!at t!e address o$ t!e p'.&is!er Ani,a& Far,s P'.&ication as indicated in t!e editoria& pa%e o$ t!e
p'.&ication itse&$ "as a post o$$ice .o9 "it! t!e Ma:ati Centra& Post O$$ice. Even as t!is o.servation "as
disp'ted .# petitioner, "!o insisted t!e p&ace o$ private respondentQs printin% and p'.&is!in% .'siness "as
act'a&&# in Mani&a, t!e Co'rt o$ Appea&s noted t!at !e s!o'&d !ave .een a&erted eno'%! .# private
respondentsQ adverse insistence and t!at a d'e investi%ation "o'&d !ave inevita.&# revea&ed t!at private
respondents !ad trans$erred $ro, t!eir previo's Mani&a address to Ma:ati .# t!e ti,e t!e s'.5ect artic&es
"ere p'.&is!ed.;
6e$ore t!is Co'rt, petitioner attac:s t!e re&iance p&aced on A%.a#ani and Soriano, pri,ari&# .# pointin% o't
t!at in .ot! cases, t!e co,p&ainants "ere p'.&ic o$$icers, and not private o$$icia&s. Petitioner s'.,its t!at
t!e )*;0 a,end,ents to Artic&e (;2 o$ t!e Revised Pena& Code "!ic! i,posed t!e present ven'e
re<'isites "ere introd'ced in order to prec&'de t!e !arass,ent o$ ,e,.ers o$ t!e press t!ro'%! &i.e& s'its
$i&ed in re,ote and distant p&aces .# p'.&ic o$$icers. Petitioner a&so assai&s t!e conc&'sion o$ t!e Co'rt o$
Appea&s t!at t!e p&ace o$ printin% and $irst p'.&ication o$ S,art Fi&e "as in Ma:ati, sa#in% t!at t!is "as
derived o't o$ !earsa# evidence.
@oes t!e s'.5ect in$or,ation s'$$icient&# vest 5'risdiction in t!e Mani&a tria& co'rts to !ear t!e &i.e& c!ar%e,
in consonance "it! Artic&e (;2 o$ t!e Revised Pena& CodeR C'rispr'dence app&#in% t!e provision !as
esta.&is!ed t!at it does not.
A%.a#ani s'pp&ies a co,pre!ensive restate,ent o$ t!e r'&es o$ ven'e in actions $or cri,ina& &i.e&,
$o&&o"in% t!e a,end,ent .# Rep. Act No. 4(;( o$ t!e Revised Pena& Code
Artic&e (;2 in its ori%ina& $or, provided t!at t!e ven'e o$ t!e cri,ina& and civi& actions $or "ritten
de$a,ations is t!e province "!erein t!e &i.e& "as p'.&is!ed, disp&a#ed or e9!i.ited, re%ard&ess o$ t!e
p&ace "!ere t!e sa,e "as "ritten, printed or co,posed. Artic&e (;2 ori%ina&&# did not speci$# t!e p'.&ic
o$$icers and t!e co'rts t!at ,a# cond'ct t!e pre&i,inar# investi%ation o$ co,p&aints $or &i.e&.
6e$ore artic&e (;2 "as a,ended, t!e r'&e "as t!at a cri,ina& action $or &i.e& ,a# .e instit'ted in an#
5'risdiction "!ere t!e &i.e&o's artic&e "as p'.&is!ed or circ'&ated, irrespective o$ "!ere it "as "ritten or
printed 7Peop&e v. 6or5a, 4( P!i&. ;)+8. Under t!at r'&e, t!e cri,ina& action is transitor# and t!e in5'red
part# !as a c!oice o$ ven'e.
E9perience !ad s!o"n t!at 'nder t!at o&d r'&e t!e o$$ended part# co'&d !arass t!e acc'sed in a &i.e& case
.# &a#in% t!e ven'e o$ t!e cri,ina& action in a re,ote or distant p&ace.
T!'s, in connection "it! an artic&e p'.&is!ed in t!e @ai&# Mirror and t!e P!i&ippine Free Press, Pio
Pedrosa, Man'e& I. Ii&&area& and Coa<'in Roces "ere c!ar%ed "it! &i.e& in t!e 5'stice o$ t!e peace co'rt
o$ San Fa.ian, Pan%asinan 7A,ansec v. @e G'J,an, *( P!i&. *((8.
To $oresta&& s'c! !arass,ent, Rep'.&ic Act No. 4(;( "as enacted. It &a#s do"n speci$ic r'&es as to t!e
ven'e o$ t!e cri,ina& action so as to prevent t!e o$$ended part# in "ritten de$a,ation cases $ro,
inconveniencin% t!e acc'sed .# ,eans o$ o't1o$1to"n &i.e& s'its, ,eanin% co,p&aints $i&ed in re,ote
,'nicipa& co'rts 7E9p&anator# Note $or t!e .i&& "!ic! .eca,e Rep'.&ic Act No. 4(;(, Con%ressiona&
Record o$ Ma# 32, )*;0, pp. 43410D Ti,e, Inc. v. Re#es, L13+++3, Ma# (), )*-), (* SCRA (2(, ())8.
T!e r'&es on ven'e in artic&e (;2 ,a# .e restated t!'s
). =!et!er t!e o$$ended part# is a p'.&ic o$$icia& or a private person, t!e cri,ina& action ,a# .e $i&ed in t!e
Co'rt o$ First Instance o$ t!e province or cit# "!ere t!e &i.e&o's artic&e is printed and $irst p'.&is!ed.
3. I$ t!e o$$ended part# is a private individ'a&, t!e cri,ina& action ,a# a&so .e $i&ed in t!e Co'rt o$ First
Instance o$ t!e province "!ere !e act'a&&# resided at t!e ti,e o$ t!e co,,ission o$ t!e o$$ense.
(. I$ t!e o$$ended part# is a p'.&ic o$$icer "!ose o$$ice is in Mani&a at t!e ti,e o$ t!e co,,ission o$ t!e
o$$ense, t!e action ,a# .e $i&ed in t!e Co'rt o$ First Instance o$ Mani&a.
4. I$ t!e o$$ended part# is a p'.&ic o$$icer !o&din% o$$ice o'tside o$ Mani&a, t!e action ,a# .e $i&ed in t!e
Co'rt o$ First Instance o$ t!e province or cit# "!ere !e !e&d o$$ice at t!e ti,e o$ t!e co,,ission o$ t!e
o$$ense.- 7E,p!asis s'pp&ied.8
T!e r'&es, as restated in A%.a#ani, do not &a# a distinction t!at on&# t!ose actions $or cri,ina& &i.e& &od%ed
.# p'.&ic o$$icers need .e $i&ed in t!e p&ace o$ printin% and $irst p'.&ication. In $act, t!e r'&e is <'ite c&ear
t!at s'c! p&ace o$ printin% and $irst p'.&ication stands as one o$ on&# t"o ven'es "!ere a private person
,a# $i&e t!e co,p&aint $or &i.e&, t!e ot!er ven'e .ein% t!e p&ace o$ residence o$ t!e o$$ended part# at t!e
ti,e t!e o$$ense "as co,,itted. T!e ver# &an%'a%e itse&$ o$ Artic&e (;2, as a,ended, does not s'pport
petitionerQs t!esis t!at "!ere t!e co,p&ainant is a private person, a ,ore &i.era& interpretation o$ t!e
p!rase ?printed and $irst p'.&is!ed? is "arranted t!an "!en a p'.&ic o$$icer is t!e o$$ended part#. To "it
Artic&e (;2. Persons responsi.&e._`i9 9 9 T!e cri,ina& and civi& action $or da,a%es in cases o$ "ritten
de$a,ations as provided $or in t!is c!apter, s!a&& .e $i&ed si,'&taneo's&# or separate&# "it! t!e Co'rt o$
First Instance o$ t!e province or cit# "!ere t!e &i.e&o's artic&e is printed and $irst p'.&is!ed or "!ere an# o$
t!e o$$ended parties act'a&&# resides at t!e ti,e o$ t!e co,,ission o$ t!e o$$ense. 9 9 9
=!ere t!e &a" does not distin%'is!, "e s!o'&d not distin%'is!.+
Petitioner $a'&ts t!e Co'rt o$ Appea&s $or re&#in% on A%.a#ani and Soriano, t"o cases "!erein t!e
co,p&ainant "as a p'.&ic o$$icer. Bet t!e Co'rt !as since !ad t!e opport'nit# to reiterate t!e A%.a#ani
doctrine even in cases "!ere t!e co,p&ainants "ere private persons.
Most te&&in% o$ t!e recent precedents is A%'stin v. Pa,int'an,* "!ic! invo&ved a cri,ina& action $or &i.e&
$i&ed .# a private person, t!e actin% %enera& ,ana%er o$ t!e 6a%'io Co'ntr# C&'., "it! t!e RTC o$ 6a%'io
Cit#. T!e re&evant portion o$ t!e In$or,ation is <'oted .e&o"
T!at on or a.o't t!e )-t! da# o$ Marc! 3222, in t!e Cit# o$ 6a%'io, P!i&ippines, and "it!in t!e 5'risdiction
o$ t!is Honora.&e Co'rt, t!e said acc'sed, "it! de&i.erate intent and ,a&icio's intent and evi& ,otive o$
attac:in%, in5'rin% and i,peac!in% t!e c!aracter, !onest#, inte%rit#, virt'e and rep'tation o$ one Ant!on#
@e Leon t!e actin% %enera& ,ana%er o$ t!e 6a%'io Co'ntr# C&'., and as a private citiJen o$ %ood standin%
and rep'tation in t!e co,,'nit# and "it! ,a&icio's intent o$ e9posin% t!e 7sic8 Ant!on# @e Leon to p'.&ic
!atred, conte,pt, ridic'&e, discredit and dis!onor, "it!o't an# 5'sti$ia.&e ,otive, did t!en and t!ere
"i&&$'&&#, ,a&icio's&# and cri,ina&&# prepare or ca'se to prepare, "rite in !is co&',n ?Coc:tai&s? and p'.&is!
in t!e P!i&ippine @ai&# In<'irer, a ne"spaper o$ %enera& circ'&ation in t!e Cit# o$ 6a%'io and in t!e entire
P!i&ippines 9 9 9.)2 7E,p!asis s'pp&ied.8
T!e p!rase ?t!e P!i&ippine @ai&# In<'irer, a ne"spaper o$ %enera& circ'&ation in t!e Cit# o$ 6a%'io and in
t!e entire P!i&ippines? .ears o.vio's si,i&arit# to t!e re$erence in t!e In$or,ation in t!is case to t!e
p'.&ication invo&ved as ?QS,art Fi&e,Q a ,a%aJine o$ %enera& circ'&ation in Mani&a,? and .ot! private
co,p&ainants in A%'stin and t!e case at .ar "ere private citiJens at t!e ti,e o$ t!e $i&in% o$ t!e co,p&aint.
Bet t!e Co'rt in A%'stin r'&ed t!at t!e $ai&'re to a&&e%e t!at 6a%'io "as t!e ven'e o$ printin% and $irst
p'.&ication, or t!at t!e co,p&ainant t!erein "as a resident o$ 6a%'io, constit'ted a s'.stantia& de$ect t!at
co'&d not even .e c'red .# ,ere a,end,ent. T!e r'&es on ven'e as &aid do"n in A%.a#ani "ere restated
in A%'stin,)) retainin% no distinction as to ven'e "!et!er t!e o$$ended part# is a p'.&ic o$$icia& or a private
person. In $act, t!e Co'rt considered t!e p!rase ?a ne"spaper o$ %enera& circ'&ation in t!e cit# o$ 6a%'io?
as so 'tter&# incapa.&e o$ esta.&is!in% 6a%'io as ven'e t!at t!e .'&: o$ t!e disc'ssion instead centered on
"!et!er t!e a&&e%ation t!at t!e co,p&ainant "as t!e actin% %enera& ,ana%er o$ t!e 6a%'io Co'ntr# C&'.
s'$$icient&# esta.&is!ed t!at !e "as a resident o$ 6a%'io Cit#. On t!at point, t!e Co'rt r'&ed t!at it did not.
In Macasaet v. Peop&e,)3 t!e co,p&ainant "as a%ain a private person.)( T!e In$or,ation $or &i.e& a%ainst
a %ossip co&',nist and t!e editors o$ t!e ta.&oid "!ic! p'.&is!ed t!e co&',n "as $i&ed "it! t!e RTC o$
A'eJon Cit#, .'t it $ai&ed to state at a&& "!ere t!e ta.&oid "as printed and $irst p'.&is!ed, or "!ere t!e
co,p&ainant resided. Even as evidence "as presented d'rin% tria& t!at co,p&ainant "as a resident o$
A'eJon Cit#, t!e Co'rt '&ti,ate&# !e&d t!at t!e a&&e%ations contained in t!e In$or,ation ?E"ereF 'tter&#
ins'$$icient to vest 5'risdiction on t!e RTC o$ A'eJon Cit#.?)4 A%ain, t!e r'&es &aid do"n in A%.a#ani "ere
cited as contro&&in%.)0 T!e Co'rt $'rt!er !e&d t!at t!e evidence esta.&is!in% t!e co,p&ainantQs p&ace o$
residence as A'eJon Cit# co'&d not c're t!e de$ect o$ t!e In$or,ation, notin% t!at ?it is sett&ed t!at
5'risdiction o$ a co'rt over a cri,ina& case is deter,ined .# t!e a&&e%ations o$ t!e co,p&aint or
in$or,ation.?);
Macasaet reso&'te&# stated t!at since t!e p&ace o$ printin% and $irst p'.&ication or t!e p&ace o$ residence at
t!e ti,e are ?,atters dea&Ein%F "it! t!e $'nda,enta& iss'e o$ t!e co'rtQs 5'risdiction, Artic&e (;2 o$ t!e
Revised Pena& Code, as a,ended, ,andates t!at eit!er one o$ t!ese state,ents ,'st .e a&&e%ed in t!e
in$or,ation itse&$ and t!e a.sence o$ .ot! $ro, t!e ver# $ace o$ t!e in$or,ation renders t!e &atter $ata&&#
de$ective.?)- =e a$$ir, t!at proposition, "!ic! is $ata& to t!is petition. T!ere is no <'estion t!at t!e
In$or,ation $ai&s to a&&e%e t!at t!e Cit# o$ Mani&a "as t!e p&ace "!ere t!e o$$endin% artic&es "ere printed
and $irst p'.&is!ed, or t!at petitioner "as a resident o$ Mani&a at t!e ti,e t!e artic&es "ere p'.&is!ed.
Petitioner does s'.,it t!at t!ere is no need to e,p&o# t!e c&a'se ?printed and $irst p'.&is!ed? in indicatin%
"!ere t!e cri,e o$ &i.e& "as co,,itted, as t!e ter, ?p'.&is!? is ?%eneric and "it!in t!e %enera& conte9t o$
t!e ter, QprintQ in so $ar as t!e &atter ter, is 'ti&iJed to re$er to t!e p!#sica& act o$ prod'cin% t!e
p'.&ication.?)+ Certain&#, t!at ar%',ent $&ies in t!e $ace o$ o'r !o&din% in A%'stin, "!ic! invo&ved a
si,i&ar&# "orded In$or,ation, and "!ic! stands as a precedent "e !ave no inc&ination to dist'r.. Sti&&, a
per'sa& o$ t!e In$or,ation in t!is case revea&s t!at t!e "ord ?p'.&is!ed? is 'ti&iJed in t!e precise conte9t o$
notin% t!at t!e de$endants ?ca'seEdF to .e p'.&is!ed in QS,art Fi&eQ, a ,a%aJine o$ %enera& circ'&ation in
Mani&a.? T!e In$or,ation states t!at t!e &i.e&o's artic&es "ere p'.&is!ed in S,art Fi&e, and not t!at t!e#
"ere p'.&is!ed in Mani&a. T!e p&ace ?Mani&a? is in t'rn e,p&o#ed to sit'ate "!ere S,art Fi&e "as in
%enera& circ'&ation, and not "!ere t!e &i.e& "as p'.&is!ed or $irst printed. T!e $act t!at S,art Fi&e "as in
%enera& circ'&ation in Mani&a does not necessari&# esta.&is! t!at it "as p'.&is!ed and $irst printed in
Mani&a, in t!e sa,e "a# t!at "!i&e &eadin% nationa& dai&ies s'c! as t!e P!i&ippine @ai&# In<'irer or t!e
P!i&ippine Star are in %enera& circ'&ation in Ce.', it does not ,ean t!at t!ese ne"spapers are p'.&is!ed
and $irst printed in Ce.'.
Indeed, i$ "e !o&d t!at t!e In$or,ation at !and s'$$icient&# vests 5'risdiction in Mani&a co'rts since t!e
p'.&ication is in %enera& circ'&ation in Mani&a, t!ere "o'&d .e no i,pedi,ent to t!e $i&in% o$ t!e &i.e& action
in ot!er &ocations "!ere S,art Fi&e is in %enera& circ'&ation. Usin% t!e e9a,p&e o$ t!e In<'irer or t!e Star,
t!e %rantin% o$ t!is petition "o'&d a&&o" a resident o$ Aparri to $i&e a cri,ina& case $or &i.e& a%ainst a
reporter or editor in Co&o, si,p&# .eca'se t!ese ne"spapers are in %enera& circ'&ation in Co&o. S'c! a
conse<'ence is precise&# "!at Rep. Act No. 4(;( so'%!t to avoid.
O'r r'&in% in 6ana& III v. Pan%ani.an)* ,i%!t tend to s'pport petitionerQs ar%',ent t!at t!e p!rase
?printed and $irst p'.&is!ed? need not .e necessari&# e,p&o#ed in t!e In$or,ation. T!e In$or,ation in t!at
case $i&ed .# private persons .e$ore t!e Ma:ati Cit# RTC read t!at t!e &i.e&o's ,atter "as $o'nd in a
ne"spaper co&',n ?o$ t!e P!i&ippine @ai&# In<'irer "!ic! is p'.&is!ed in En%&is! in t!e Cit# o$ Ma:ati,
Metro Mani&a, P!i&ippines and o$ %enera& circ'&ation in t!e P!i&ippines and a.road 9 9 9 9.?32 T!e Co'rt did
o.serve t!at t!is in$or,ation "as ?s'$$icient in $or,?3) as it c&ear&# stated ?t!at t!e ne"spaper is p'.&is!ed
in Ma:ati Cit# .'t circ'&ated t!ro'%!o't t!e co'ntr#, "!ic! a&&e%ation accordin%&# vests 5'risdiction over
t!e o$$ense c!ar%ed in t!e RTC o$ Ma:ati Cit#.?33 Bet even not"it!standin% t!e $act t!at t!e in$or,ation in
6ana& III did not 'se t!e p!rase ?printed and $irst p'.&is!ed,? it sti&& cate%orica&&# stated, at t!e ver# &east,
t!at t!e &i.e&o's ,atter "as ?p'.&is!ed in En%&is! in t!e Cit# o$ Ma:ati.? In contrast, "!at t!e In$or,ation
at .ar cate%orica&&# states is t!at t!e &i.e&o's ,atter "as ?p'.&is!ed in S,art Fi&e,? not ?p'.&is!ed in
Mani&a.?3( T!e $act t!at t!e present In$or,ation $'rt!er a&&e%es t!at S,art Fi&e "as ?o$ %enera& circ'&ation
in Mani&a? does not necessari&# ,ean t!at t!e ,a%aJine "as printed and $irst p'.&is!ed in Mani&a. In an#
event, as t!e &an%'a%e in t!e present in$or,ation !e"s c&oser to t!at in A%'stin rat!er t!an 6ana& III, "e
$ind t!e $or,er as t!e appropriate precedent to app&# in t!is case.
For 's to %rant t!e present petition, it "o'&d .e necessar# to a.andon t!e A%.a#ani r'&e providin% t!at a
private person ,'st $i&e t!e co,p&aint $or &i.e& eit!er in t!e p&ace o$ printin% and $irst p'.&ication, or at t!e
co,p&ainantQs p&ace o$ residence. =e "o'&d a&so !ave to a.andon t!e s'.se<'ent cases t!at reiterate t!is
r'&e in A%.a#ani, s'c! as Soriano, A%'stin, and Macasaet. T!ere is no convincin% reason to resort to s'c!
a radica& action. T!ese &i,itations i,posed on &i.e& actions $i&ed .# private persons are !ard&# onero's,
especia&&# as t!e# sti&& a&&o" s'c! persons to $i&e t!e civi& or cri,ina& co,p&aint in t!eir respective p&aces o$
residence, in "!ic! sit'ation t!ere is no need to e,.ar: on a <'est to deter,ine "it! precision "!ere t!e
&i.e&o's ,atter "as printed and $irst p'.&is!ed.STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
I$ t!is dis<'isition i,presses an 'nd'&# $or,a&istic readin% o$ t!e In$or,ation at !and, it s!o'&d .e
reiterated t!at t!e $&a"s in t!e In$or,ation stri:e at t!e ver# !eart o$ t!e 5'risdiction o$ t!e Mani&a RTC. It is
sett&ed t!at 5'risdiction o$ a co'rt over a cri,ina& case is deter,ined .# t!e a&&e%ations o$ t!e co,p&aint or
in$or,ation,34 and t!e o$$ense ,'st !ave .een co,,itted or an# one o$ its essentia& in%redients too:
p&ace "it!in t!e territoria& 5'risdiction o$ t!e co'rt.30 Artic&e (;2 states, in as 'ne<'ivoca& a ,anner as
possi.&e, t!at t!e cri,ina& and civi& action $or &i.e& s!a&& .e $i&ed "it! t!e co'rt o$ t!e province or cit# ?"!ere
t!e &i.e&o's artic&e is printed and $irst p'.&is!ed, or "!ere an# o$ t!e o$$ended parties act'a&&# resides at
t!e ti,e o$ t!e co,,ission o$ t!e o$$ense.? I$ t!e In$or,ation $or &i.e& does not esta.&is! "it! partic'&arit#
an# o$ t!ese t"o ven'e re<'ire,ents, t!e tria& co'rt "o'&d !ave no 5'risdiction to !ear t!e cri,ina& case.
Anot!er point .ears to .e added. =e are 'na.&e to s!are petitionerQs insistence t!at since t!e protection
o$ ,e,.ers o$ t!e ,ass ,edia $ro, $rivo&o's &i.e& s'its $i&ed .# p'.&ic o$$icers in $ar1$&'n%
p&aces appears to !ave .een a ,otivatin% $orce .e!ind t!e a,end,ents to Artic&e (;2, a ,ore &i.era&
interpretation o$ t!e provision s!o'&d o.tain i$ t!e co,p&ainant is a private person. =it!o't t!e ven'e
re<'ire,ents 'nder Artic&e (;2, a private person ind'ced .# a ,otive to !arass co'&d, si,i&ar&# as a p'.&ic
o$$icer, coerce a 5o'rna&ist to de$end a%ainst a &i.e& s'it $i&ed in t!e ,ost re,ote o$ p&aces. =!i&e Rep. Act
No. 4(;( does attri.'te va&'e to t!e ri%!t to co,,ent on t!e per$or,ance o$ p'.&ic o$$icia&s o$ t!eir d'ties,
it act'a&&# e9tends its protection to t!e ri%!t o$ an# person to $ree e9pression, .# ass'rin% a reasona.&e
ven'e re<'ire,ent even i$ t!e s'.5ect o$ co,,ent is not a p'.&ic o$$icer. Li.e& stands as an e9ception to
one o$ t!e ,ost c!eris!ed constit'tiona& ri%!ts, t!at o$ $ree e9pression. =!i&e &i.e& &a"s ens're a ,odic',
o$ responsi.i&it# in oneQs o"n speec! or e9pression, a prescri.ed &e%a& standard t!at conveniences t!e
eas# pro&i$eration o$ &i.e& s'its $osters an at,osp!ere t!at in!i.its t!e ri%!t to spea: $ree&#. =!en s'c! a
prescri.ed standard is s'.,itted $or a$$ir,ation .e$ore t!is Co'rt, as is done in t!is petition, it ,'st
receive t!e !i%!est possi.&e scr'tin#, as it ,a# inter$ere "it! t!e ,ost .asic o$ de,ocratic ri%!ts.
Fina&&#, "e dec&ine to reso&ve t!e ot!er iss'es raised in t!e petition, as t!e In$or,ation .# itse&$ is de$ective
on its $ace, $or t!e reasons "e !ave stated, t!at t!ere is no need to eva&'ate "!et!er S,art Fi&e "as
act'a&&# printed and $irst p'.&is!ed in Mani&a or Ma:ati Cit#. T!e p&ain $act is t!at t!e In$or,ation $ai&ed to
,a:e t!e s'$$icient a&&e%ation in t!at re%ard, and even an# ascertain,ent t!at t!e artic&es "ere printed and
$irst p'.&is!ed in Mani&a does not c're t!e 5'risdictiona& de$ect o$ t!e In$or,ation.
=HEREFORE, t!e petition is @ENIE@.
SPRINGFIEL@ @EIELOPMENT CORPORATION, INC. and HEIRS OF PETRA CAPISTRANO PIIT,
Petitioners, v. HONORA6LE PRESI@ING CU@GE OF REGIONAL TRIAL COURT OF MISAMIS
ORIENTAL, 6RANCH 42, CAGABAN @E ORO CITB, @EPARTMENT OF AGRARIAN REFORM
A@CU@ICATION 6OAR@ 7@ARA68, @AR REGION H @IRECTOR, ROSALIO GAMULO, FORTUNATO
TELEN, EMERITA OLANGO, THERESA MONTUERTO, @OMINGO H. CLAPERO, COEL U. LIM,
CENEMAIR U. POLLEB, FI@ELA U. POLLEB, CESUS 6ATUTAB, NICANOR UCA6, EMERIA U. LIM,
EMILITO CLAPERO, ANTONINA RIAS, AURILLIO ROMULO, ER=IN P. CLAPERO, EIELITO
CULANGO, IILMAOCRUISINE ALONG, EFREN EMATA, GREGORIO CA6ARI6AN, and SA6INA
CANTORANA, Respondents.
Petra Capistrano Piit previo's&# o"ned Lot No. 33*) &ocated in Ca%a#an de Oro Cit# "!ic! ,eas'red
)3(,42+ s<'are ,eters 'nder Trans$er Certi$icate o$ Tit&e No. T1;3;3(. Sprin%$ie&d @eve&op,ent
Corporation, Inc. 7Sprin%$ie&d8 .o'%!t Lot No. 33*)1C "it! an area o$ ;+,-(3 s<'are ,eters, and Lot No.
33*)1@ "it! an area o$ 4*,--+ s<'are ,eters.) Sprin%$ie&d deve&oped t!ese properties into a s'.division
pro5ect ca&&ed Me%a Hei%!ts S'.division.3
On Ma# 4, )**2, t!e @epart,ent o$ A%rarian Re$or, 7@AR8, t!ro'%! its M'nicipa& A%rarian Re$or,
O$$icer, iss'ed a Notice o$ Covera%e,( p&acin% t!e propert# 'nder t!e covera%e o$ Rep'.&ic Act 7R.A.8 No.
;;0- or t!e Co,pre!ensive A%rarian Re$or, La" o$ )*++. T!ere .ein% an opposition $ro, t!e !eirs o$
Petra Piit, t!e case "as doc:eted as @ARA6 Case No. H1(20. On A'%'st 3-, )**), @ARA6 Provincia&
Ad5'dicator A.eto A. Sa&cedo, Cr. rendered a decision dec&arin% t!e nat're o$ t!e propert# as residentia&
and not s'ita.&e $or a%ric'&t're.4 T!e Re%iona& @irector $i&ed a notice o$ appea&, "!ic! t!e Provincia&
Ad5'dicator disa&&o"ed $or .ein% pro $or,a and $rivo&o's.0 T!e decision .eca,e $ina& and e9ec'tor#; and
Sprin%$ie&d proceeded to deve&op t!e propert#.-
T!e @AR Re%iona& @irector t!en $i&ed a petition $or re&ie$ $ro, 5'd%,ent o$ t!e @ARA6 @ecision, doc:eted
as @ARA6 Case No. 2000. In its @ecision dated Octo.er 0, )**0, t!e @ARA6 %ranted t!e petition and
%ave d'e co'rse to t!e Notice o$ Covera%e. It a&so directed t!e M'nicipa& A%rarian Re$or, O$$ice to
proceed "it! t!e doc',entation, ac<'isition, and distri.'tion o$ t!e propert# to t!e tr'e and &a"$'&
.ene$iciaries.+
T!e @ARA6 a&so iss'ed an Order dated Ma# 33, )**-, orderin% t!e !eirs o$ Piit and Sprin%$ie&d to pa# t!e
$ar,er1.ene$iciaries t!e a,o'nt o$ T"e&ve Mi&&ion, T!ree H'ndred Fort# T!o'sand, Ei%!t H'ndred Pesos
7P)3,(42,+22.228, correspondin% to t!e va&'e o$ t!e propert# since t!e propert# !as a&read# .een
deve&oped into a s'.division.
On C'ne )(, )**-, Sprin%$ie&d and t!e !eirs o$ Piit 7petitioners8 $i&ed "it! t!e RTC o$ Ca%a#an de Oro Cit#,
6ranc! 42, a petition $or ann'&,ent o$ t!e @ARA6 @ecision dated Octo.er 0, )**0 and a&& its s'.se<'ent
proceedin%s. Petitioners contend t!at t!e @ARA6 decision "as rendered "it!o't a$$ordin% petitioners an#
notice and !earin%.*
On ,otion $i&ed .# t!e $ar,er1.ene$iciaries, t!e RTC iss'ed an Order dated C'ne 30, )**-, dis,issin% t!e
case $or &ac: o$ 5'risdiction.)2
On C'&# 3, )**-, petitioners $i&ed "it! t!e Co'rt o$ Appea&s 7CA8 a specia& civi& action $or certiorari,
,anda,'s, and pro!i.ition "it! pra#er $or t!e iss'ance o$ "rit o$ pre&i,inar# in5'nction andOor te,porar#
restrainin% order, doc:eted as CA1G.R. SP No. 440;(.)) Petitioners a&&e%ed t!at t!e RTC co,,itted
%rave a.'se o$ discretion "!en it r'&ed t!at t!e ann'&,ent o$ 5'd%,ent $i&ed .e$ore it is act'a&&# an action
$or certiorari in a di$$erent co&or. Accordin% to petitioners, "!at it so'%!t .e$ore t!e RTC is an ann'&,ent o$
t!e @ARA6 @ecision and not certiorari, as t!e @ARA6 @ecision is void a. initio $or !avin% .een rendered
"it!o't d'e process o$ &a".)3
In t!e assai&ed @ecision)( dated C'&# );, )**+, t!e CA dis,issed t!e petition $or &ac: o$ ,erit, r'&in% t!at
t!e RTC does not !ave 5'risdiction to ann'& t!e @ARA6 @ecision .eca'se it is a co1e<'a& .od#.)4
Ho"ever, on Can'ar# )3, )***, t!e CA ordered t!e e&evation o$ t!e @ARA6 records .e$ore it, dec&arin%
t!at it ?over&oo:ed t!e $act t!at petitioners &i:e"ise app&ied $or a "rit o$ pro!i.ition a%ainst t!e en$orce,ent
o$ t!e @ARA6 decision "!ic! t!e# c&ai, to .e patent&# void.?)0 For"arded to t!e CA "ere t!e records o$
t!e ori%ina& case $i&ed "it! t!e @ARA61Re%ion H, and it appearin% t!at t!e petition $or re&ie$ $ro, 5'd%,ent
and its pertinent records "ere $or"arded to t!e @ARA6 Centra& O$$ice, t!e CA iss'ed anot!er Reso&'tion
on @ece,.er 32, )***,); re<'irin% t!e @ARA6 Centra& O$$ice to $or"ard t!e records o$ t!e case. 6't
a$ter receipt o$ t!e records, t!e CA si,p&# denied petitionersQ ,otion $or reconsideration per Reso&'tion)-
dated Fe.r'ar# 3(, 3222 "it!o't speci$ica&&# reso&vin% t!e iss'es raised concernin% t!e pra#er $or a "rit o$
pro!i.ition.
Hence, t!e present petition on t!e $o&&o"in% %ro'nds
I
THE COURT OF APPEALS COMMITTE@ A CLEAR ERROR OF LA= IN APPLBING THE PRINCIPLE
OF CU@ICIAL STA6ILITB TO CUSTIFB ITS CONCLUSION @IIESTING THE REGIONAL TRIAL COURT
OF ITS CURIS@ICTION IESTE@ 6B LA= OIER CASES =HERE THE EHCLUSIIE CURIS@ICTION
=AS NOT EHPRESSLB GRANTE@ TO ANB OTHER COURTS ESICF OR TRI6UNAL, IN EFFECT,
MO@IFBING THE APPLICA6LE LA= ON THE MATTER.
II
THE COURT OF APPEALS IRREGULARLB @ISMISSE@ PETITIONERSQ MOTION FOR
RECONSI@ERATION AFTER IT HA@ RESOLIE@ TO ENTERTAIN PETITIONERSQ PETITION FOR
PROHI6ITION AN@ TO REIIE= THE @ARA6 PROCEE@INGS, THERE6B @EPARTING FROM THE
USUAL COURSE OF CU@ICIAL PROCEE@INGS.
III
THE HONORA6LE SUPREME COURT, 6EING THE HIGHEST TEMPLE OF RIGHTS, AN@ TO AIOI@
SERIOUS MISCARRIAGE OF CUSTICE AN@ NEE@LESS @ELABS, IS MOST RESPECTFULLB URGE@
TO TANE COGNIcANCE OF THE PETITION FILE@ IN CA1G.R. SP No. 440;( IN THE EHERCISE OF
ITS CONCURRENT CURIS@ICTION, AS IF THE PETITION =AS ORIGINALLB LO@GE@ 6EFORE IT.)+
Petitioners ar%'e t!at 'nder 6atas Pa,.ansa 76.P.8 6&%. )3*, t!ere is no provision t!at vests "it! t!e CA
5'risdiction over actions $or ann'&,ent o$ @ARA6 5'd%,ents. Petitioners, !o"ever, contend t!at t!e RTC
,a# ta:e co%niJance o$ t!e ann'&,ent case since Section )* o$ 6.P. 6&%. )3* vests t!e RTC "it! %enera&
5'risdiction and an action $or ann'&,ent is covered 'nder s'c! %enera& 5'risdiction. Accordin% to
petitioners, ?t!is is .'t a &o%ica& conse<'ence o$ t!e $act t!at no ot!er co'rts "ere e9press&# %iven t!e
5'risdiction over s'c! actions.?)* Petitioners $'rt!er ar%'e t!at t!e CA "as in error "!en it s',,ari&#
i%nored t!eir app&ication $or a "rit o$ pro!i.ition, as it "as necessar# to restrain t!e @ARA6 $ro, en$orcin%
its void decisionD and even i$ t!e @ARA6 decision "as va&id, t!e "rit o$ pro!i.ition co'&d !ave en5oined t!e
e9ec'tion o$ t!e @ARA6 decision since t!ere !ave .een c!an%es "!ic! "i&& ,a:e t!e e9ec'tion 'n5'st
and ine<'ita.&e.
In t!eir Coint1Co,,ents, t!e $ar,er1.ene$iciaries and t!e @ARA6 7respondents8 re$'te petitionersQ
a&&e%ation t!at t!e# "ere not a$$orded d'e process in t!e @ARA6 proceedin%s, statin% t!at petitioners
"ere i,p&eaded as a part# t!ereto, and in $act, t!e# attended so,e o$ t!e !earin%s a&t!o'%! t!eir co'nse&
"as a.sent. Respondents a&so adopt t!e CAQs r'&in% t!at t!e RTC is not vested "it! an# 5'risdiction to
ann'& t!e @ARA6 decision.
As stated at t!e o'tset, t!e ,ain iss'e in t!is case is "!et!er t!e RTC !as 5'risdiction to ann'& a $ina&
5'd%,ent o$ t!e @ARA6.
Note ,'st .e ,ade t!at t!e petition $or ann'&,ent o$ t!e @ARA6 decision "as $i&ed "it! t!e RTC on C'ne
)(, )**-, .e$ore t!e advent o$ t!e )**- R'&es o$ Civi& Proced're, "!ic! too: e$$ect on C'&# ), )**-. T!'s,
t!e app&ica.&e &a" is 6.P. 6&%. )3* or t!e C'diciar# Reor%aniJation Act o$ )*+2, enacted on A'%'st )2,
)*+).
It is a&so "ort!# o$ note t!at .e$ore t!e e$$ectivit# o$ 6.P. 6&%. )3*, a co'rt o$ $irst instance !as t!e a't!orit#
to ann'& a $ina& and e9ec'tor# 5'd%,ent rendered .# anot!er co'rt o$ $irst instance or .# anot!er .ranc! o$
t!e sa,e co'rt. T!is "as t!e Co'rtQs r'&in% in @'&ap v. Co'rt o$ Appea&s.32 Bet, in s'.se<'ent cases,3)
t!e Co'rt !e&d t!at t!e .etter po&ic#, as a ,atter o$ co,it# or co'rteo's interaction .et"een co'rts o$ $irst
instance and t!e .ranc!es t!ereo$, is $or t!e ann'&,ent cases to .e tried .# t!e sa,e co'rt or .ranc!
"!ic! !eard t!e ,ain action.
T!e $ore%oin% doctrines "ere ,odi$ied in N%o 6'n Tion% v. Sa#o,33 "!ere t!e Co'rt e9pressed t!at
p'rs'ant to t!e po&ic# o$ 5'dicia& sta.i&it#, t!e doctrine o$ non1inter$erence .et"een conc'rrent and
coordinate co'rts s!o'&d .e re%arded as !i%!&# i,portant in t!e ad,inistration o$ 5'stice "!ere.# t!e
5'd%,ent o$ a co'rt o$ co,petent 5'risdiction ,a# not .e opened, ,odi$ied or vacated .# an# co'rt o$
conc'rrent 5'risdiction.
=it! t!e introd'ction o$ 6.P. 6&%. )3*,3( t!e r'&e on ann'&,ent o$ 5'd%,ents "as speci$ica&&# provided in
Section *738, "!ic! vested in t!e t!en Inter,ediate Appe&&ate Co'rt 7no" t!e CA8 t!e e9c&'sive ori%ina&
5'risdiction over actions $or ann'&,ent o$ 5'd%,ents o$ RTCs. Sec. *7(8 o$ 6.P. 6&%. )3* a&so vested t!e
CA "it! ?e9c&'sive appe&&ate 5'risdiction over a&& $ina& 5'd%,ents, decisions, reso&'tions, orders, or a"ards
o$ Re%iona& Tria& Co'rts and <'asi15'dicia& a%encies, instr',enta&ities, .oards or co,,issions, e9cept
t!ose $a&&in% "it!in t!e appe&&ate 5'risdiction o$ t!e S'pre,e Co'rt in accordance "it! t!e Constit'tion, t!e
provisions o$ t!is Act, and o$ s'.1para%rap! 7)8 o$ t!e t!ird para%rap! and s'.para%rap! 748 o$ t!e $o'rt!
para%rap! o$ Section )- o$ t!e C'diciar# Act o$ )*4+.? As provided in para%rap! ); o$ t!e Interi, R'&es
and G'ide&ines i,p&e,entin% 6.P. 6&%. )3*, t!e <'asi15'dicia& .odies "!ose decisions are e9c&'sive&#
appea&a.&e to t!e CA are t!ose, "!ic! 'nder t!e &a", R.A. No. 04(4,34 or its ena.&in% acts, are
speci$ica&&# appea&a.&e to t!e CA.
Si%ni$icant&#, 6.P. 6&%. )3* does not speci$ica&&# provide $or an# po"er o$ t!e RTC to ann'& 5'd%,ents o$
<'asi15'dicia& .odies. Ho"ever, in 6F Nort!"est Ho,eo"ners Association, Inc. v. Inter,ediate Appe&&ate
Co'rt,30 t!e Co'rt r'&ed t!at t!e RTCs !ave 5'risdiction over actions $or ann'&,ent o$ t!e decisions o$ t!e
Nationa& =ater Reso'rces Co'nci&, "!ic! is a <'asi15'dicia& .od# ran:ed "it! in$erior co'rts, p'rs'ant to
its ori%ina& 5'risdiction to iss'e "rits o$ certiorari, pro!i.ition, and ,anda,'s, 'nder Sec. 3)7)8 o$ 6.P. 6&%.
)3*, in re&ation to acts or o,issions o$ an in$erior co'rt. T!is &ed to t!e conc&'sion t!at despite t!e
a.sence o$ an# provision in 6.P. 6&%. )3*, t!e RTC !ad t!e po"er to entertain petitions $or ann'&,ent o$
5'd%,ents o$ in$erior co'rts and ad,inistrative or <'asi15'dicia& .odies o$ e<'a& ran:in%. T!is is a&so in
!ar,on# "it! t!e ?pre16.P. 6&%. )3*? r'&in%s o$ t!e Co'rt reco%niJin% t!e po"er o$ a tria& co'rt 7co'rt o$
$irst instance8 to ann'& $ina& 5'd%,ents.3; Hence, "!i&e it is tr'e, as petitioners contend, t!at t!e RTC !ad
t!e a't!orit# to ann'& $ina& 5'd%,ents, s'c! a't!orit# pertained on&# to $ina& 5'd%,ents rendered .# in$erior
co'rts and <'asi15'dicia& .odies o$ e<'a& ran:in% "it! s'c! in$erior co'rts.
T!e $ore%oin% state,ents .e% t!e ne9t <'estion, i.e., "!et!er t!e @ARA6 is a <'asi15'dicia& .od# "it! t!e
ran: o$ an in$erior co'rt s'c! t!at t!e RTC ,a# ta:e co%niJance o$ an action $or t!e ann'&,ents o$ its
5'd%,ents. T!e ans"er is no.
T!e @ARA6 is a <'asi15'dicia& .od# created .# E9ec'tive Order Nos. 33* and )3*1A. R.A. No. ;;0-
de&ineated its ad5'dicator# po"ers and $'nctions. T!e @ARA6 Revised R'&es o$ Proced're adopted on
@ece,.er 3;, )*++3- speci$ica&&# provides $or t!e ,anner o$ 5'dicia& revie" o$ its decisions, orders,
r'&in%s, or a"ards. R'&e HII, Section ) states
SECTION ). Certiorari to t!e Co'rt o$ Appea&s. An# decision, order, a"ard or r'&in% .# t!e 6oard or its
Ad5'dicators on an# a%rarian disp'te or on an# ,atter pertainin% to t!e app&ication, i,p&e,entation,
en$orce,ent or interpretation o$ a%rarian re$or, &a"s or r'&es and re%'&ations pro,'&%ated t!ere'nder,
,a# .e .ro'%!t "it!in $i$teen 7)08 da#s $ro, receipt o$ a cop# t!ereo$, to t!e Co'rt o$ Appea&s .#
certiorari, e9cept as provided in t!e ne9t s'cceedin% section. Not"it!standin% an appea& to t!e Co'rt o$
Appea&s t!e decision o$ t!e 6oard or Ad5'dicator appea&ed $ro,, s!a&& .e i,,ediate&# e9ec'tor#.
F'rt!er, t!e prevai&in% )**- R'&es o$ Civi& Proced're, as a,ended, e9press&# provides $or an appea& $ro,
t!e @ARA6 decisions to t!e CA.3+
T!e r'&e is t!at "!ere &e%is&ation provides $or an appea& $ro, decisions o$ certain ad,inistrative .odies to
t!e CA, it ,eans t!at s'c! .odies are co1e<'a& "it! t!e RTC, in ter,s o$ ran: and stat're, and &o%ica&&#,
.e#ond t!e contro& o$ t!e &atter.3*
Given t!at @ARA6 decisions are appea&a.&e to t!e CA, t!e inevita.&e conc&'sion is t!at t!e @ARA6 is a
co1e<'a& .od# "it! t!e RTC and its decisions are .e#ond t!e RTCQs contro&. T!e CA "as t!ere$ore correct
in s'stainin% t!e RTCQs dis,issa& o$ t!e petition $or ann'&,ent o$ t!e @ARA6 @ecision dated Octo.er 0,
)**0, as t!e RTC does not !ave an# 5'risdiction to entertain t!e sa,e.
T!is .rin%s to $ore t!e iss'e o$ "!et!er t!e petition $or ann'&,ent o$ t!e @ARA6 5'd%,ent co'&d .e
.ro'%!t to t!e CA. As previo's&# noted, Section *738 o$ 6.P. 6&%. )3* vested in t!e CA t!e e9c&'sive
ori%ina& 5'risdiction over actions $or ann'&,ent o$ 5'd%,ents, .'t on&# t!ose rendered .# t!e RTCs. It does
not e9press&# %ive t!e CA t!e po"er to ann'& 5'd%,ents o$ <'asi15'dicia& .odies. T!'s, in E&cee Far,s,
Inc. v. Se,i&&ano,(2 t!e Co'rt a$$ir,ed t!e r'&in% o$ t!e CA t!at it !as no 5'risdiction to entertain a petition
$or ann'&,ent o$ a $ina& and e9ec'tor# 5'd%,ent o$ t!e NLRC, citin% Section * o$ 6.P. 6&%. )3*, as
a,ended, "!ic! on&# vests in t!e CA ?e9c&'sive 5'risdiction over actions $or ann'&,ent o$ 5'd%,ents o$
Re%iona& Tria& Co'rts.? T!is "as reiterated in Ga&an% v. Co'rt o$ Appea&s,() "!ere t!e Co'rt r'&ed t!at
t!at t!e CA is "it!o't 5'risdiction to entertain a petition $or ann'&,ent o$ 5'd%,ent o$ a $ina& decision o$ t!e
Sec'rities and E9c!an%e Co,,ission.
Recent r'&in%s on si,i&ar cases invo&vin% ann'&,ents o$ 5'd%,ents o$ <'asi15'dicia& .odies are a&so <'ite
instr'ctive on t!is ,atter.
In Co&e v. Co'rt o$ Appea&s,(3 invo&vin% an ann'&,ent o$ t!e 5'd%,ent o$ t!e HLUR6 Ar.iter and t!e
O$$ice o$ t!e President 7OP8, $i&ed "it! t!e CA, t!e Co'rt stated t!at, ?7U8nder R'&e 4- o$ t!e R'&es o$
Co'rt, t!e re,ed# o$ ann'&,ent o$ 5'd%,ent is con$ined to decisions o$ t!e Re%iona& Tria& Co'rt on t!e
%ro'nd o$ e9trinsic $ra'd and &ac: o$ 5'risdiction 9 9 9.? T!e Co'rt $'rt!er r'&ed, viJ.
A&t!o'%! t!e %ro'nds set $ort! in t!e petition $or ann'&,ent o$ 5'd%,ent are $ra'd and &ac: o$ 5'risdiction,
said petition cannot prosper $or t!e si,p&e reason t!at t!e decision so'%!t to .e ann'&&ed "as not
rendered .# t!e Re%iona& Tria& Co'rt .'t .# an ad,inistrative a%enc# 7HLU Ar.iter and O$$ice o$ t!e
President8, !ence, not "it!in t!e 5'risdiction o$ t!e Co'rt o$ Appea&s. T!ere is no s'c! re,ed# as
ann'&,ent o$ 5'd%,ent o$ t!e HLUR6 or t!e O$$ice o$ t!e President. Ass',in% ar%'endo t!at t!e
ann'&,ent petition can .e treated as a Petition $or Revie" 'nder R'&e 4( o$ t!e )**- R'&es o$ Civi&
Proced're, t!e sa,e s!o'&d !ave .een dis,issed .# t!e Co'rt o$ Appea&s, .eca'se no error o$ 5'd%,ent
"as i,p'ted to t!e HLUR6 and t!e O$$ice o$ t!e President. Fra'd and &ac: o$ 5'risdiction are .e#ond t!e
province o$ petitions 'nder R'&e 4( o$ t!e R'&es o$ Co'rt, as it covers on&# errors o$ 5'd%,ent. A petition
$or ann'&,ent o$ 5'd%,ent is an initiator# re,ed#, !ence no error o$ 5'd%,ent can .e t!e s'.5ect t!ereo$.
6esides, t!e Ar.iter and t!e O$$ice o$ t!e President indisp'ta.&# !ave 5'risdiction over t!e cases .ro'%!t
.e$ore t!e, in &ine "it! o'r r'&in% in Francisco S#cip, Cr. v. Co'rt o$ Appea&s, pro,'&%ated on Marc! )-,
3222, "!ere t!e a%%rieved to"n!o'se .'#ers ,a# see: protection $ro, t!e HLUR6 'nder Presidentia&
@ecree No. *0-, ot!er"ise :no"n as ?S'.division and Condo,ini', 6'#ersQ Protective @ecree.?((
7E,p!asis s'pp&ied8cra&a"&i.rar#
In Maca&a&a% v. O,.'ds,an,(4 t!e Co'rt r'&ed t!at R'&e 4- o$ t!e )**- R'&es o$ Civi& Proced're on
ann'&,ent o$ 5'd%,ents or $ina& orders and reso&'tions covers ?ann'&,ent .# t!e Co'rt o$ Appea&s o$
5'd%,ents or $ina& orders and reso&'tions in civi& actions o$ Re%iona& Tria& Co'rts $or "!ic! t!e ordinar#
re,edies o$ ne" tria&, appea&, petition $or re&ie$ or ot!er appropriate re,edies co'&d no &on%er .e avai&ed o$
t!ro'%! no $a'&t o$ t!e petitioner.? T!'s, t!e Co'rt conc&'ded t!at 5'd%,ents or $ina& orders and
reso&'tions o$ t!e O,.'ds,an in ad,inistrative cases cannot .e ann'&&ed .# t!e CA, ,ore so, since T!e
O,.'ds,an Act speci$ica&&# dea&s "it! t!e re,ed# o$ an a%%rieved part# $ro, orders, directives and
decisions o$ t!e O,.'ds,an in ad,inistrative discip&inar# cases on&#, and t!e ri%!t to appea& is not to .e
considered %ranted to parties a%%rieved .# orders and decisions o$ t!e O,.'ds,an in cri,ina& or non1
ad,inistrative cases.
=!i&e t!ese cases invo&ve ann'&,ents o$ 5'd%,ents 'nder t!e )**- R'&es o$ Civi& Proced're, as
a,ended, sti&&, t!e# sti&& $ind app&ication in t!e present case, as t!e provisions o$ 6.P. 6&%. )3* and t!e
)**- R'&es o$ Civi& Proced're, as a,ended, on ann'&,ent o$ 5'd%,ents are identica&.
Conse<'ent&#, t!e si&ence o$ 6.P. 6&%. )3* on t!e 5'risdiction o$ t!e CA to ann'& 5'd%,ents or $ina& orders
and reso&'tions o$ <'asi15'dicia& .odies &i:e t!e @ARA6 indicates its &ac: o$ s'c! a't!orit#.
F'rt!er, petitioners are a&so as:in% t!e Co'rt to ta:e co%niJance o$ t!eir pra#er $or t!e iss'ance o$ a "rit
o$ pro!i.ition, "!ic! t!e# c&ai, "as not acted 'pon .# t!e CA, citin% t!e Co'rtQs action in Fortic! v.
Corona(0 "!ere t!e Co'rt too: co%niJance o$ t!e petition previo's&# $i&ed "it! t!e CA d'e to co,pe&&in%
reasons. T!e Co'rt is not pers'aded to do so.
Fortic! invo&ved a )441!ectare &and &ocated at San Iicente, S',i&ao, 6':idnon, o"ned .# t!e Nor.erto
A'is',.in%, Sr. Mana%e,ent and @eve&op,ent Corporation 7NASRM@C8, "!ic! "as &eased as a
pineapp&e p&antation to @e& Monte P!i&ippines, Inc. $or a period o$ )2 #ears. @'rin% t!e e9istence o$ t!e
&ease, t!e @AR p&aced t!e entire )441!ectare propert# 'nder co,p'&sor# ac<'isition and assessed t!e
&and va&'e at P3.(+ ,i&&ion. =!en t!e NASRM@CO6AI@A 76':idnon A%ro1Ind'stria& @eve&op,ent
Association8 $i&ed an app&ication $or conversion d'e to t!e passa%e o$ Reso&'tion No. ; .# t!e Provincia&
@eve&op,ent Co'nci& o$ 6':idnon and Ordinance No. 34 .# t!e San%%'nian% 6a#an o$ S',i&ao,
6':idnon, rec&assi$#in% t!e area $ro, a%ric'&t'ra& to ind'stria&Oinstit'tiona&, t!e sa,e "as disapproved .#
t!e @AR Secretar# and instead, t!e propert# "as p&aced 'nder t!e co,p'&sor# covera%e o$
Co,pre!ensive A%rarian Re$or, Pro%ra, $or distri.'tion to a&& <'a&i$ied .ene$iciaries. T!is pro,pted
Governor Car&os O. Fortic! o$ 6':idnon to $i&e an appea& "it! t!e OP, "!i&e NASRM@C $i&ed "it! t!e CA a
petition $or certiorari, and pro!i.ition "it! pre&i,inar# in5'nction.
T!e OP t!en iss'ed a @ecision dated Marc! 3*, )**; reversin% t!e @AR Secretar#Qs decision and
approvin% t!e app&ication $or conversion. E9ec'tive Secretar# R'.en @. Torres denied t!e @ARQs ,otion
$or reconsideration $or !avin% .een $i&ed .e#ond t!e re%&e,entar# period o$ )0 da#s, and it "as a&so
dec&ared t!at t!e OP @ecision dated Marc! 3*, )**; !ad a&read# .eco,e $ina& and e9ec'tor#.
6eca'se o$ t!is, t!e $ar,er1.ene$iciaries sta%ed a !'n%er stri:e on Octo.er *, )**-, protestin% t!e OPQs
decision. In order to reso&ve t!e stri:e, t!e OP iss'ed a so1ca&&ed ?=inO=in? reso&'tion on Nove,.er -,
)**-, ,odi$#in% t!e decision in t!at NASRM@CQs app&ication $or conversion is approved on&# "it! respect
to t!e appro9i,ate&# 441!ectare portion o$ t!e &and ad5acent to t!e !i%!"a#, as reco,,ended .# t!e
@epart,ent o$ A%ric'&t're, "!i&e t!e re,ainin% appro9i,ate&# )22 !ectares traversed .# an irri%ation
cana& and $o'nd to .e s'ita.&e $or a%ric'&t're s!a&& .e distri.'ted to <'a&i$ied $ar,er1
.ene$iciaries.STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
A petition $or certiorari and pro!i.ition 'nder R'&e ;0 o$ t!e Revised R'&es o$ Co'rt(; "as t!en $i&ed "it!
t!e Co'rt, "!ic! "as contested .# t!e O$$ice o$ t!e So&icitor Genera& on t!e %ro'nd t!at t!e proper
re,ed# s!o'&d !ave .een to $i&e a Petition $or Revie" direct&# "it! t!e CA in accordance "it! R'&e 4( o$
t!e Revised R'&es o$ Co'rt.
In reso&vin% t!e iss'e, t!e Co'rt reco%niJed t!e r'&e t!at t!e S'pre,e Co'rt, CA and RTC !ave ori%ina&
conc'rrent 5'risdiction to iss'e a "rit o$ certiorari, pro!i.ition, and ,anda,'s . Ho"ever, d'e to
co,pe&&in% reasons and in t!e interest o$ speed# 5'stice, t!e Co'rt reso&ved to ta:e pri,ar# 5'risdiction
over t!e petition in t!e interest o$ speed# 5'stice, a$ter "!ic! t!e Co'rt n'&&i$ied t!e act o$ t!e OP in re1
openin% t!e case and s'.stantia&&# ,odi$#in% its Marc! 3*, )**; @ecision "!ic! !ad a&read# .eco,e $ina&
and e9ec'tor#, as it "as in %ross disre%ard o$ t!e r'&es and .asic &e%a& precept t!at accord $ina&it# to
ad,inistrative deter,inations.
It ,'st .e stressed at t!is point t!at t!e Co'rt, as a r'&e, "i&& not entertain direct resort to it 'n&ess t!e
redress desired cannot .e o.tained in t!e appropriate co'rts, and e9ceptiona& and co,pe&&in%
circ',stances, s'c! as cases o$ nationa& interest and o$ serio's i,p&ications, 5'sti$# t!e avai&,ent o$ t!e
e9traordinar# re,ed# o$ "rit o$ certiorari, pro!i.ition, or ,anda,'s ca&&in% $or t!e e9ercise o$ its pri,ar#
5'risdiction.(- T!e Co'rt $inds no co,pe&&in% circ',stances in t!is case to "arrant a re&a9ation o$ t!e
$ore%oin% r'&e. T!e Fortic! case is not ana&o%o's "it! t!e present case s'c! t!at t!e Co'rt is not .o'nd to
a.andon a&& r'&es, ta:e pri,ar# 5'risdiction, and reso&ve t!e ,erits o$ petitionersQ app&ication $or a "rit o$
pro!i.ition.
In t!e present case, t!e assai&ed @ARA6 @ecision dated Octo.er 0, )**0 %rantin% t!e petition $or re&ie$
$ro, 5'd%,ent and %ivin% d'e co'rse to t!e Notice o$ Covera%e "as ,ade p'rs'ant to a petition $or re&ie$
$ro, 5'd%,ent $i&ed .# t!e @AR, a&.eit petitioners are contestin% t!e va&idit# o$ t!e proceedin%s !e&d
t!ereon. On t!e ot!er !and, in Fortic!, t!e OPQs ?=inO=in? reso&'tion dated Nove,.er -, )**- "as ,ade
,ot' proprio, as a res'&t o$ t!e !'n%er stri:e sta%ed .# t!e $ar,er1.ene$iciaries.
F'rt!er, t!e OPQs ?=inO=in? Reso&'tion dated Nove,.er -, )**- in t!e Fortic! case is a patent&# void
5'd%,ent since it "as evident t!at t!ere "as a&read# an e9istin% $ina& and e9ec'tor# OP @ecision dated
Marc! 3*, )**;. In t!is case, t!e assai&ed @ARA6 @ecision dated Octo.er 0, )**0 appears to .e re%'&ar
on its $ace, and $or its a&&e%ed n'&&it# to .e reso&ved, t!e Co'rt ,'st de&ve into t!e records o$ t!e case in
order to deter,ine t!e va&idit# o$ petitionersQ ar%',ent o$ &ac: o$ d'e process, a.sent notice and !earin%.
Moreover, t!e princip&e o$ !ierarc!# o$ co'rts app&ies %enera&&# to cases invo&vin% $act'a& <'estions. As it
is not a trier o$ $acts, t!e Co'rt cannot entertain cases invo&vin% $act'a& iss'es.(+ T!e <'estion o$ "!et!er
t!e @ARA6 @ecision dated Octo.er 0, )**0 is n'&& and void and en$orcea.&e a%ainst petitioners $or !avin%
.een rendered "it!o't a$$ordin% petitioners d'e process is a $act'a& <'estion "!ic! re<'ires a revie" o$
t!e records o$ t!is case $or it to .e 5'dicio's&# reso&ved.
T!e Co'rt notes t!at t!e CA, indeed, $ai&ed to reso&ve petitionersQ pra#er $or t!e iss'ance o$ t!e "rit o$
pro!i.ition, "!ic!, si%ni$icant&#, $oc'ses on t!e a&&e%ed n'&&it# o$ t!e @ARA6 @ecision dated Octo.er 0,
)**0. On t!is score, t!e CA $o'nd t!at t!e app&ication $or t!e iss'ance o$ t!e "rit o$ pro!i.ition "as
act'a&&# a co&&atera& attac: on t!e va&idit# o$ t!e @ARA6 decision. 6't, a $ina& and e9ec'tor# 5'd%,ent ,a#
.e set aside in t!ree "a#sD(* and a co&&atera& attac:, "!ere.# in an action to o.tain a di$$erent re&ie$, an
attac: on t!e 5'd%,ent is nevert!e&ess ,ade as an incident t!ereo$,42 is one o$ t!ese. T!is tenet is .ased
'pon a co'rtQs in!erent a't!orit# to e9p'n%e void acts $ro, its records.4) @espite reco%niJin% t!e need to
reso&ve petitionersQ app&ication $or t!e "rit o$ pro!i.ition in its Reso&'tion dated Can'ar# )3, )***, t!e CA
nonet!e&ess s',,ari&# denied petitionersQ ,otion $or reconsideration in its Reso&'tion dated Fe.r'ar# 3(,
3222,43 &eavin% t!e ,atter !an%in% and 'nreso&ved.
At $irst, t!e Co'rt considered reso&vin% t!e ,erits o$ petitionersQ ,otion $or reconsideration concernin%
t!eir app&ication $or a "rit o$ pro!i.ition a%ainst en$orcin% t!e @ARA6 @ecision dated Octo.er 0, )**0.
T!'s, in a Reso&'tion dated C'ne 0, 322;, t!e Co'rt directed t!e CA to trans,it t!e records o$ @ARA6
Case No. 2000, "!ic! "as previo's&# re<'ired .# t!e CA to .e $or"arded to it per Reso&'tion dated
@ece,.er 32, )***.4( Ho"ever, as o$ even date, t!e CA !as not co,p&ied "it! t!e Co'rtQs Reso&'tion.
=it!a&, 'pon re1e9a,ination o$ t!e iss'es invo&ved in t!is case, t!e Co'rt dee,s it ,ore 5'dicio's to
re,and t!is case to t!e CA $or i,,ediate reso&'tion o$ petitionersQ ,otion $or reconsideration, re t!eir
app&ication $or t!e "rit o$ pro!i.ition.
Moreover, t!e radica& con$&ict in t!e $indin%s o$ t!e Provincia& Ad5'dicator and t!e @ARA6 as re%ards t!e
nat're o$ t!e s'.5ect propert# necessitates a revie" o$ t!e present case. In t!is re%ard, t!e CA is in a
.etter position to $'&&# ad5'dicate t!e case $or it can de&ve into t!e records to deter,ine t!e pro.ative va&'e
o$ t!e evidence s'pportin% t!e $indin%s o$ t!e Provincia& Ad5'dicator and o$ t!e @ARA6. In addition, t!e
CA is e,po"ered .# its interna& r'&es to re<'ire parties to s'.,it additiona& doc',ents, as it ,a# $ind
necessar# to pro,ote t!e ends o$ s'.stantia& 5'stice, and $'rt!er order t!e trans,itta& o$ t!e proper
records $or it to $'&&# ad5'dicate t!e case. A$ter a&&, it is an avo"ed po&ic# o$ t!e co'rts t!at cases s!o'&d .e
deter,ined on t!e ,erits, a$ter $'&& opport'nit# to a&& parties $or venti&ation o$ t!eir ca'ses and de$enses,
rat!er t!an on tec!nica&it# or so,e proced'ra& i,per$ections. In t!at "a#, t!e ends o$ 5'stice "o'&d .e
served .etter.44
=HEREFORE, t!e petition is PARTLB GRANTE@. T!is case is REMAN@E@ to t!e Co'rt o$ Appea&s
"!ic! is @IRECTE@ to reso&ve petitionersQ pra#er $or t!e iss'ance o$ t!e "rit o$ pro!i.ition in t!eir Motion
$or Reconsideration.
Upon $ina&it# o$ t!is @ecision, &et t!e records .e re,anded $ort!"it! to t!e Co'rt o$ Appea&s.
HEIRS OF =ILSON P. GAM6OA,j Petitioners, v. FINANCE SECRETARBMARGARITO 6. TEIES,
FINANCE UN@ERSECRETARBCOHN P. SEIILLA, AN@ COMMISSIONER RICAR@O A6CE@E OF THE
PRESI@ENTIAL COMMISSION ON GOO@ GOIERNMENT7PCGG8 IN THEIR CAPACITIES AS CHAIR
AN@ MEM6ERS, RESPECTIIELB, OF THE PRIIATIcATION COUNCIL, CHAIRMAN ANTHONI SALIM
OF FIRST PACIFIC CO., LT@. IN HIS CAPACITB AS @IRECTOR OF METRO PACIFIC ASSET
HOL@INGS INC., CHAIRMAN MANUEL I. PANGILINAN OF PHILIPPINE LONG @ISTANCE
TELEPHONE COMPANB 7PL@T8 IN HIS CAPACITB AS MANAGING @IRECTOR OF FIRST PACIFIC
CO., LT@., PRESI@ENT NAPOLEON L. NAcARENO OF PHILIPPINE LONG @ISTANCE TELEPHONE
COMPANB, CHAIR FE 6ARIN OF THE SECURITIES AN@ EHCHANGE COMMISSION, and
PRESI@ENT FRANCIS LIM OF THE PHILIPPINE STOCN EHCHANGE, Respondents.
PA6LITO I. SANI@A@ and ARNO I. SANI@A@, Petitioner1in1Intervention.
R E S O L U T I O N
CARPIO, C.
T!is reso&ves t!e ,otions $or reconsideration o$ t!e 3+ C'ne 32)) @ecision $i&ed .# 7)8 t!e P!i&ippine
Stoc: E9c!an%eQs 7PSE8 President, )krl&& 738 Man'e& I. Pan%i&inan 7Pan%i&inan8,3krl&& 7(8 Napo&eon L.
NaJareno 7NaJareno 8,(krl&& and 7 48 t!e Sec'rities and E9c!an%e Co,,ission 7SEC84krl&& 7co&&ective&#,
,ovants 8.
T!e O$$ice o$ t!e So&icitor Genera& 7OSG8 initia&&# $i&ed a ,otion $or reconsideration on .e!a&$o$t!e
SEC,0krl&& assai&in% t!e 3+ C'ne 32)) @ecision. Ho"ever, it s'.se<'ent&# $i&ed a Conso&idated Co,,ent
on .e!a&$ o$ t!e State,;krl&& dec&arin% e9press&# t!at it a%rees "it! t!e Co'rtQs de$inition o$ t!e ter,
?capita&? in Section )), Artic&e HII o$ t!e Constit'tion. @'rin% t!e Ora& Ar%',ents on 3; C'ne 32)3, t!e
OSG reiterated its position consistent "it! t!e Co'rtQs 3+ C'ne 32)) @ecision.
=e den# t!e ,otions $or reconsideration.
I.
Far1reac!in% i,p&ications o$ t!e &e%a& iss'e 5'sti$#
treat,ent o$ petition $or dec&arator# re&ie$ as one $or ,anda,'s.
As "e e,p!atica&&# stated in t!e 3+ C'ne 32)) @ecision, t!e interpretation o$ t!e ter, ?capita&? in Section
)), Artic&e HII o$ t!e Constit'tion !as $ar1reac!in% i,p&ications to t!e nationa& econo,#. In $act, a
reso&'tion o$ t!is iss'e "i&& deter,ine "!et!er Fi&ipinos are ,asters, or second1c&ass citiJens, in t!eir o"n
co'ntr#. =!at is at sta:e !ere is "!et!er Fi&ipinos or $orei%ners "i&& !ave e$$ective contro& o$ t!e P!i&ippine
nationa& econo,#. Indeed, i$ ever t!ere is a &e%a& iss'e t!at !as $ar1reac!in% i,p&ications to t!e entire
nation, and to $'t're %enerations o$ Fi&ipinos, it is t!e t!res!o&d &e%a& iss'e presented in t!is case.
Contrar# to Pan%i&inans narro" vie", t!e serio's econo,ic conse<'ences res'&tin% in t!e interpretation o$
t!e ter, ?capita&? in Section )), Artic&e HII o$ t!e Constit'tion 'ndo'.ted&# de,and an i,,ediate
ad5'dication o$ t!is iss'e. Si,p&# p't, t!e $ar1reac!in% i,p&ications o$ t!is iss'e 5'sti$# t!e treat,ent o$ t!e
petition as one $or ,anda,'s.-krl&&
In L'Jon Stevedorin% Corp. v. Anti1@',,# 6oard,+krl&& t!e Co'rt dee,ed it "ise and e9pedient to
reso&ve t!e case a&t!o'%! t!e petition $or dec&arator# re&ie$ co'&d .e o'tri%!t&# dis,issed $or .ein%
proced'ra&&# de$ective. T!ere, appe&&ant ad,itted&# !ad a&read# co,,itted a .reac! o$ t!e P'.&ic Service
Act in re&ation to t!e Anti1@',,# La" since it !ad .een e,p&o#in% non1 A,erican a&iens &on% .e$ore t!e
decision in a prior si,i&ar case. Ho"ever, t!e ,ain iss'e in L'Jon Stevedorin% "as o$ transcendenta&
i,portance, invo&vin% t!e e9ercise or en5o#,ent o$ ri%!ts, $ranc!ises, privi&e%es, properties and
.'sinesses "!ic! on&# Fi&ipinos and <'a&i$ied corporations co'&d e9ercise or en5o# 'nder t!e Constit'tion
and t!e stat'tes. Moreover, t!e sa,e iss'e co'&d .e raised .# appe&&ant in an appropriate action. T!'s, in
L'Jon Stevedorin% t!e Co'rt dee,ed it necessar# to $ina&&# dispose o$ t!e case $or t!e %'idance o$ a&&
concerned, despite t!e apparent proced'ra& $&a" in t!e petition.
T!e circ',stances s'rro'ndin% t!e present case, s'c! as t!e s'pposed proced'ra& de$ect o$ t!e petition
and t!e pivota& &e%a& iss'e invo&ved, rese,.&e t!ose in L'Jon Stevedorin%. Conse<'ent&#, in t!e interest o$
s'.stantia& 5'stice and $ait!$'& ad!erence to t!e Constit'tion, "e opted to reso&ve t!is case $or t!e
%'idance o$ t!e p'.&ic and a&& concerned parties.
II.
No c!an%e o$ an# &on%1standin% r'&eD
t!'s, no rede$inition o$ t!e ter, ?capita&.?
Movants contend t!at t!e ter, ?capita&? in Section )), Artic&e HII o$ t!e Constit'tion !as &on% .een sett&ed
and de$ined to re$er to t!e tota& o'tstandin% s!ares o$ stoc:, "!et!er votin% or non1votin%. In $act, ,ovants
c&ai, t!at t!e SEC, "!ic! is t!e ad,inistrative a%enc# tas:ed to en$orce t!e ;2142 o"ners!ip re<'ire,ent
in $avor o$ Fi&ipino citiJens in t!e Constit'tion and vario's stat'tes, !as consistent&# adopted t!is partic'&ar
de$inition in its n',ero's opinions. Movants point o't t!at "it! t!e 3+ C'ne 32)) @ecision, t!e Co'rt in
e$$ect introd'ced a ?ne"? de$inition or ?,idstrea, rede$inition?*krl&& o$ t!e ter, ?capita&? in Section )),
Artic&e HII o$ t!e Constit'tion.
T!is is e%re%io's error.
For ,ore t!an -0 #ears since t!e )*(0 Constit'tion, t!e Co'rt !as not interpreted or de$ined t!e ter,
?capita&? $o'nd in vario's econo,ic provisions o$ t!e )*(0, )*-( and )*+- Constit'tions. T!ere !as never
.een a 5'dicia& precedent interpretin% t!e ter, ?capita&? in t!e )*(0, )*-( and )*+- Constit'tions, 'nti&
no". Hence, it is patent&# "ron% and 'tter&# .ase&ess to c&ai, t!at t!e Co'rt in de$inin% t!e ter, ?capita&?
in its 3+ C'ne 32)) @ecision ,odi$ied, reversed, or set aside t!e p'rported &on%1standin% de$inition o$ t!e
ter, ?capita&,? "!ic! s'pposed&# re$ers to t!e tota& o'tstandin% s!ares o$ stoc:, "!et!er votin% or non1
votin%. To repeat, 'nti& t!e present case t!ere !as never .een a Co'rt r'&in% cate%orica&&# de$inin% t!e
ter, ?capita&? $o'nd in t!e vario's econo,ic provisions o$ t!e )*(0, )*-( and )*+- P!i&ippine
Constit'tions.
T!e opinions o$ t!e SEC, as "e&& as o$ t!e @epart,ent o$ C'stice 7@OC8, on t!e de$inition o$ t!e ter,
?capita&? as re$errin% to .ot! votin% and non1votin% s!ares 7co,.ined tota& o$ co,,on and pre$erred
s!ares8 are, in t!e $irst p&ace, con$&ictin% and inconsistent. T!ere is no .asis "!atsoever to t!e c&ai, t!at
t!e SEC and t!e @OC !ave consistent&# and 'ni$or,&# adopted a de$inition o$ t!e ter, ?capita&? contrar# to
t!e de$inition t!at t!is Co'rt adopted in its 3+ C'ne 32)) @ecision.
In @OC Opinion No. )(2, s. )*+0,)2krl&& dated - Octo.er )*+0, t!e scope o$ t!e ter, ?capita&? in Section
*, Artic&e HII o$ t!e )*-( Constit'tion "as raised, t!at is, "!et!er t!e ter, ?capita&? inc&'des ?.ot!
pre$erred and co,,on stoc:s.? T!e iss'e "as raised in re&ation to a stoc:1s"ap transaction .et"een a
Fi&ipino and a Capanese corporation, .ot! stoc:!o&ders o$ a do,estic corporation t!at o"ned &ands in t!e
P!i&ippines. T!en Minister o$ C'stice Este&ito P. MendoJa r'&ed t!at t!e res'&tin% o"ners!ip str'ct're o$
t!e corporation "o'&d .e 'nconstit'tiona& .eca'se ;2P o$ t!e votin% stoc: "o'&d .e o"ned .# Capanese
"!i&e Fi&ipinos "o'&d o"n on&# 42P o$ t!e votin% stoc:, a&t!o'%! "!en t!e non1votin% stoc: is added,
Fi&ipinos "o'&d o"n ;2P o$ t!e co,.ined votin% and non1votin% stoc:. T!is o"ners!ip str'ct're is
re,ar:a.&# si,i&ar to t!e c'rrent o"ners!ip str'ct're o$ PL@T. Minister MendoJa r'&ed
9 9 9 9
T!'s, t!e Fi&ipino %ro'p sti&& o"ns si9t# 7;2P8 o$ t!e entire s'.scri.ed capita& stoc: 7co,,on and
pre$erred8 "!i&e t!e Capanese investors contro& si9t# percent 7;2P8 o$ t!e co,,on 7votin%8 s!ares.
It is #o'r position t!at 9 9 9 since Section *, Artic&e HII o$ t!e Constit'tion 'ses t!e "ord ?capita&,? "!ic! is
constr'ed ?to inc&'de .ot! pre$erred and co,,on s!ares? and ?t!at "!ere t!e &a" does not distin%'is!,
t!e co'rts s!a&& not distin%'is!.?
9 9 9 9
In &i%!t o$ t!e $ore%oin% 5'rispr'dence, it is ,# opinion t!at t!e stoc:1s"ap transaction in <'estion ,a# not
.e constit'tiona&&# 'p!e&d. =!i&e it ,a# .e ordinar# corporate practice to c&assi$# corporate s!ares into
co,,on votin% s!ares and pre$erred non1votin% s!ares, an# arran%e,ent "!ic! atte,pts to de$eat t!e
constit'tiona& p'rpose s!o'&d .e esc!e"ed. T!'s, t!e res'&tant e<'it# arran%e,ent "!ic! "o'&d p&ace
o"ners!ip o$ ;2P))krl&&o$ t!e co,,on 7votin%8 s!ares in t!e Capanese %ro'p, "!i&e retainin% ;2P o$ t!e
tota& percenta%e o$ co,,on and pre$erred s!ares in Fi&ipino !ands "o'&d a,o'nt to circ',vention o$ t!e
princip&e o$ contro& .# P!i&ippine stoc:!o&ders t!at is i,p&icit in t!e ;2P P!i&ippine nationa&it# re<'ire,ent
in t!e Constit'tion. 7E,p!asis s'pp&ied8
In s!ort, Minister MendoJa cate%orica&&# re5ected t!e t!eor# t!at t!e ter, ?capita&? in Section *, Artic&e HII
o$ t!e )*-( Constit'tion inc&'des ?.ot! pre$erred and co,,on stoc:s? treated as t!e sa,e c&ass o$
s!ares re%ard&ess o$ di$$erences in votin% ri%!ts and privi&e%es. Minister MendoJa stressed t!at t!e ;2142
o"ners!ip re<'ire,ent in $avor o$ Fi&ipino citiJens in t!e Constit'tion is not co,p&ied "it! 'n&ess t!e
corporation ?satis$ies t!e criterion o$ .ene$icia& o"ners!ip? and t!at in app&#in% t!e sa,e ?t!e pri,ordia&
consideration is sit's o$ contro&.?
On t!e ot!er !and, in Opinion No. 3(1)2 dated )+ A'%'st 32)2, addressed to Casti&&o La,an Tan
Panta&eon M San Cose, t!en SEC Genera& Co'nse& Iernette G. U,a&i1Paco app&ied t!e Iotin% Contro&
Test, t!at is, 'sin% on&# t!e votin% stoc: to deter,ine "!et!er a corporation is a P!i&ippine nationa&. T!e
Opinion states
App&#in% t!e $ore%oin%, partic'&ar&# t!e Contro& Test, MLRC is dee,ed as a P!i&ippine nationa& .eca'se
7)8 si9t# percent 7;2P8 o$ its o'tstandin% capita& stoc: entit&ed to vote is o"ned .# a P!i&ippine nationa&,
t!e Tr'steeD and 738 at &east si9t# percent 7;2P8 o$ t!e ERF "i&& accr'e to t!e .ene$it o$ P!i&ippine
nationa&s. Sti&& p'rs'ant to t!e Contro& Test, MLRCs invest,ent in ;2P o$ 6F@Cs o'tstandin% capita&
stoc: entit&ed to vote s!a&& .e dee,ed as o$ P!i&ippine nationa&it#, t!ere.# <'a&i$#in% 6F@C to o"n private
&and.
F'rt!er, 'nder, and $or p'rposes o$, t!e FIA, MLRC and 6F@C are .ot! P!i&ippine nationa&s, considerin%
t!at 7)8 si9t# percent 7;2P8 o$ t!eir respective o'tstandin% capita& stoc: entit&ed to vote is o"ned .# a
P!i&ippine nationa& 7i.e., .# t!e Tr'stee, in t!e case o$ MLRCD and .# MLRC, in t!e case o$ 6F@C8D and 738
at &east ;2P o$ t!eir respective .oard o$ directors are Fi&ipino citiJens. 76o&d$acin% and ita&iciJation
s'pp&ied8
C&ear&#, t!ese @OC and SEC opinions are co,pati.&e "it! t!e Co'rts interpretation o$ t!e ;2142
o"ners!ip re<'ire,ent in $avor o$ Fi&ipino citiJens ,andated .# t!e Constit'tion $or certain econo,ic
activities. At t!e sa,e ti,e, t!ese opinions !i%!&i%!t t!e con$&ictin%, contradictor#, and inconsistent
positions ta:en .# t!e @OC and t!e SEC on t!e de$inition o$ t!e ter, ?capita&? $o'nd in t!e econo,ic
provisions o$ t!e Constit'tion.
T!e opinions iss'ed .# SEC &e%a& o$$icers do not !ave t!e $orce and e$$ect o$ SEC r'&es and re%'&ations
.eca'se on&# t!e SEC en .anc can adopt r'&es and re%'&ations. As e9press&# provided in Section 4.; o$
t!e Sec'rities Re%'&ation Code,)3krl&& t!e SEC cannot de&e%ate to an# o$ its individ'a& Co,,issioner or
sta$$ t!e po"er to adopt an# r'&e or re%'&ation. F'rt!er, 'nder Section 0.) o$ t!e sa,e Code, it is t!e SEC
as a co&&e%ia& .od#, and not an# o$ its &e%a& o$$icers, t!at is e,po"ered to iss'e opinions and approve
r'&es and re%'&ations. T!'s
4.;. T!e Co,,ission ,a#, $or p'rposes o$ e$$icienc#, de&e%ate an# o$ its $'nctions to an# depart,ent or
o$$ice o$ t!e Co,,ission, an individ'a& Co,,issioner or sta$$ ,e,.er o$ t!e Co,,ission e9cept its
revie" or appe&&ate a't!orit# and its po"er to adopt, a&ter and s'pp&e,ent an# r'&e or re%'&ation.
T!e Co,,ission ,a# revie" 'pon its o"n initiative or 'pon t!e petition o$ an# interested part# an# action
o$ an# depart,ent or o$$ice, individ'a& Co,,issioner, or sta$$ ,e,.er o$ t!e Co,,ission.
SEC. 0. Po"ers and F'nctions o$ t!e Co,,ission.1 0.). T!e Co,,ission s!a&& act "it! transparenc# and
s!a&& !ave t!e po"ers and $'nctions provided .# t!is Code, Presidentia& @ecree No. *231A, t!e
Corporation Code, t!e Invest,ent Ho'ses La", t!e Financin% Co,pan# Act and ot!er e9istin% &a"s.
P'rs'ant t!ereto t!e Co,,ission s!a&& !ave, a,on% ot!ers, t!e $o&&o"in% po"ers and
$'nctionsc!anro.&esvirt'a&&a"&i.rar#
9 9 9 9
7%8 Prepare, approve, a,end or repea& r'&es, re%'&ations and orders, and iss'e opinions and provide
%'idance on and s'pervise co,p&iance "it! s'c! r'&es, re%'&ations and ordersD
9 9 9 9 7E,p!asis s'pp&ied8
T!'s, t!e act o$ t!e individ'a& Co,,issioners or &e%a& o$$icers o$ t!e SEC in iss'in% opinions t!at !ave t!e
e$$ect o$ SEC r'&es or re%'&ations is '&tra vires. Under Sections 4.; and 0.)7%8 o$ t!e Code, on&# t!e SEC
en .anc can ?iss'e opinions? t!at !ave t!e $orce and e$$ect o$ r'&es or re%'&ations. Section 4.; o$ t!e Code
.ars t!e SEC en .anc $ro, de&e%atin% to an# individ'a& Co,,issioner or sta$$ t!e po"er to adopt r'&es or
re%'&ations. In s!ort, an# opinion o$ individ'a& Co,,issioners or SEC &e%a& o$$icers does not constit'te a
r'&e or re%'&ation o$ t!e SEC.
T!e SEC ad,its d'rin% t!e Ora& Ar%',ents t!at on&# t!e SEC en .anc, and not an# o$ its individ'a&
co,,issioners or &e%a& sta$$, is e,po"ered to iss'e opinions "!ic! !ave t!e sa,e .indin% e$$ect as SEC
r'&es and re%'&ations, t!'s
CUSTICE CARPIO
So, 'nder t!e &a", it is t!e Co,,ission En 6anc t!at can iss'e an
SEC Opinion, correctR
COMMISSIONER GAITE)(krl&&
T!ats correct, Bo'r Honor.
CUSTICE CARPIO
Can t!e Co,,ission En 6anc de&e%ate t!is $'nction to an SEC o$$icerR
COMMISSIONER GAITE
Bes, Bo'r Honor, "e !ave de&e%ated it to t!e Genera& Co'nse&.
CUSTICE CARPIO
It can .e de&e%ated. =!at cannot .e de&e%ated .# t!e Co,,ission En 6anc to a co,,issioner or an
individ'a& e,p&o#ee o$ t!e Co,,issionR
COMMISSIONER GAITE
Nove& opinions t!at E!aveF to .e decided .# t!e En 6anc...
CUSTICE CARPIO
=!at cannot .e de&e%ated, a,on% ot!ers, is t!e po"er to adopt or a,end r'&es and re%'&ations, correctR
COMMISSIONER GAITE
T!ats correct, Bo'r Honor.
CUSTICE CARPIO
So, #o' co,.ine t!e t"o 738, t!e SEC o$$icer, i$ de&e%ated t!at po"er, can iss'e an opinion .'t t!at
opinion does not constit'te a r'&e or re%'&ation, correctR
COMMISSIONER GAITE
Correct, Bo'r Honor.
CUSTICE CARPIO
So, a&& o$ t!ese opinions t!at #o' ,entioned t!e# are not r'&es and re%'&ations, correctR
COMMISSIONER GAITE
T!e# are not r'&es and re%'&ations.
CUSTICE CARPIO
I$ t!e# are not r'&es and re%'&ations, t!e# app&# on&# to t!at partic'&ar sit'ation and "i&& not constit'te a
precedent, correctR
COMMISSIONER GAITE
Bes, Bo'r Honor.)4krl&& 7E,p!asis s'pp&ied8
Si%ni$icant&#, t!e SEC en .anc, "!ic! is t!e co&&e%ia& .od# stat'tori&# e,po"ered to iss'e r'&es and
opinions on .e!a&$ o$ t!e SEC, !as adopted even t!e Grand$at!er R'&e in deter,inin% co,p&iance "it! t!e
;2142 o"ners!ip re<'ire,ent in $avor o$ Fi&ipino citiJens ,andated .# t!e Constit'tion $or certain
econo,ic activities. T!is prevai&in% SEC r'&in%, "!ic! t!e SEC correct&# adopted to t!"art an#
circ',vention o$ t!e re<'ired Fi&ipino ?o"ners!ip and contro&,? is &aid do"n in t!e 30 Marc! 32)2 SEC en
.anc r'&in% in Red,ont Conso&idated Mines, Corp. v. McArt!'r Minin%, Inc., et a&.,)0krl&& to "it
T!e avo"ed p'rpose o$ t!e Constit'tion is to p&ace in t!e !ands o$ Fi&ipinos t!e e9p&oitation o$ o'r nat'ra&
reso'rces. Necessari&#, t!ere$ore, t!e R'&e interpretin% t!e constit'tiona& provision s!o'&d not di,inis!
t!at ri%!t t!ro'%! t!e &e%a& $iction o$ corporate o"ners!ip and contro&. 6't t!e constit'tiona& provision, as
interpreted and practiced via t!e )*;- SEC R'&es, !as $avored $orei%ners contrar# to t!e co,,and o$ t!e
Constit'tion. Hence, t!e Grand$at!er R'&e ,'st .e app&ied to acc'rate&# deter,ine t!e act'a&
participation, .ot! direct and indirect, o$ $orei%ners in a corporation en%a%ed in a nationa&iJed activit# or
.'siness.
Co,p&iance "it! t!e constit'tiona& &i,itation7s8 on en%a%in% in nationa&iJed activities ,'st .e deter,ined
.# ascertainin% i$ ;2P o$ t!e investin% corporations o'tstandin% capita& stoc: is o"ned .# ?Fi&ipino
citiJens?, or as interpreted, .# nat'ra& or individ'a& Fi&ipino citiJens. I$ s'c! investin% corporation is in t'rn
o"ned to so,e e9tent .# anot!er investin% corporation, t!e sa,e process ,'st .e o.served. One ,'st
not stop 'nti& t!e citiJens!ips o$ t!e individ'a& or nat'ra& stoc:!o&ders o$ &a#er a$ter &a#er o$ investin%
corporations !ave .een esta.&is!ed, t!e ver# essence o$ t!e Grand$at!er R'&e.
Last&#, it "as t!e intent o$ t!e $ra,ers o$ t!e )*+- Constit'tion to adopt t!e Grand$at!er R'&e. In one o$
t!e disc'ssions on "!at is no" Artic&e HII o$ t!e present Constit'tion, t!e $ra,ers ,ade t!e $o&&o"in%
e9c!an%e
MR. NOLLE@O. In Sections (, * and )0, t!e Co,,ittee stated &oca& or Fi&ipino e<'it# and $orei%n e<'it#D
na,e&#, ;2142 in Section (, ;2142 in Section *, and 3O(1)O( in Section )0.
MR. IILLEGAS. T!at is ri%!t.
MR. NOLLE@O. In teac!in% &a", "e are a&"a#s $aced "it! t!e <'estion =!ere do "e .ase t!e e<'it#
re<'ire,ent, is it on t!e a't!oriJed capita& stoc:, on t!e s'.scri.ed capita& stoc:, or on t!e paid1'p capita&
stoc: o$ a corporationR =i&& t!e Co,,ittee p&ease en&i%!ten ,e on t!isR
MR. IILLEGAS. =e !ave 5'st !ad a &on% disc'ssion "it! t!e ,e,.ers o$ t!e tea, $ro, t!e UP La"
Center "!o provided 's a dra$t. T!e p!rase t!at is contained !ere "!ic! "e adopted $ro, t!e UP dra$t is
;2 percent o$ votin% stoc:.
MR. NOLLE@O. T!at ,'st .e .ased on t!e s'.scri.ed capita& stoc:, .eca'se 'n&ess dec&ared
de&in<'ent, 'npaid capita& stoc: s!a&& .e entit&ed to vote.
MR. IILLEGAS. T!at is ri%!t.
MR. NOLLE@O. T!an: #o'. =it! respect to an invest,ent .# one corporation in anot!er corporation, sa#,
a corporation "it! ;2142 percent e<'it# invests in anot!er corporation "!ic! is per,itted .# t!e
Corporation Code, does t!e Co,,ittee adopt t!e %rand$at!er r'&eR
MR. IILLEGAS. Bes, t!at is t!e 'nderstandin% o$ t!e Co,,ittee.
MR. NOLLE@O. T!ere$ore, "e need additiona& Fi&ipino capita&R
MR. IILLEGAS. Bes. 76o&d$acin% and 'nderscorin% s'pp&iedD ita&iciJation in t!e ori%ina&8
T!is SEC en .anc r'&in% con$or,s to o'r 3+ C'ne 32)) @ecision t!at t!e ;2142 o"ners!ip re<'ire,ent in
$avor o$ Fi&ipino citiJens in t!e Constit'tion to en%a%e in certain econo,ic activities app&ies not on&# to
votin% contro& o$ t!e corporation, .'t a&so to t!e .ene$icia& o"ners!ip o$ t!e corporation. T!'s, in o'r 3+
C'ne 32)) @ecision "e stated
Mere &e%a& tit&e is ins'$$icient to ,eet t!e ;2 percent Fi&ipinoo"ned ?capita&? re<'ired in t!e Constit'tion.
F'&& .ene$icia& o"ners!ip o$ ;2 percent o$ t!e o'tstandin% capita& stoc:, co'p&ed "it! ;2 percent o$ t!e
votin% ri%!ts, is re<'ired. T!e &e%a& and .ene$icia& o"ners!ip o$ ;2 percent o$ t!e o'tstandin% capita& stoc:
,'st rest in t!e !ands o$ Fi&ipino nationa&s in accordance "it! t!e constit'tiona& ,andate. Ot!er"ise, t!e
corporation is ?considered as non1P!i&ippine nationa&EsF.? 7E,p!asis s'pp&ied8
6ot! t!e Iotin% Contro& Test and t!e 6ene$icia& O"ners!ip Test ,'st .e app&ied to deter,ine "!et!er a
corporation is a ?P!i&ippine nationa&.?
T!e interpretation .# &e%a& o$$icers o$ t!e SEC o$ t!e ter, ?capita&,? e,.odied in vario's opinions "!ic!
respondents re&ied 'pon, is ,ere&# pre&i,inar# and an opinion on&# o$ s'c! o$$icers. To repeat, an# s'c!
opinion does not constit'te an SEC r'&e or re%'&ation. In $act, ,an# o$ t!ese opinions contain a disc&ai,er
"!ic! e9press&# states ?9 9 9 t!e $ore%oin% opinion is .ased so&e&# on $acts disc&osed in #o'r <'er# and
re&evant on&# to t!e partic'&ar iss'e raised t!erein and s!a&& not .e 'sed in t!e nat're o$ a standin% r'&e
.indin% 'pon t!e Co,,ission in ot!er cases "!et!er o$ si,i&ar or dissi,i&ar circ',stances.?);krl&& T!'s,
t!e opinions c&ear&# ,a:e a caveat t!at t!e# do not constit'te .indin% precedents on an# one, not even on
t!e SEC itse&$.
Li:e"ise, t!e opinions o$ t!e SEC en .anc, as "e&& as o$ t!e @OC, interpretin% t!e &a" are neit!er
conc&'sive nor contro&&in% and t!'s, do not .ind t!e Co'rt. It is !orn.oo: doctrine t!at an# interpretation o$
t!e &a" t!at ad,inistrative or <'asi15'dicia& a%encies ,a:e is on&# pre&i,inar#, never conc&'sive on t!e
Co'rt. T!e po"er to ,a:e a $ina& interpretation o$ t!e &a", in t!is case t!e ter, ?capita&? in Section )),
Artic&e HII o$ t!e )*+- Constit'tion, &ies "it! t!is Co'rt, not "it! an# ot!er %overn,ent entit#.
In !is ,otion $or reconsideration, t!e PSE President cites t!e cases o$ Nationa& Te&eco,,'nications
Co,,ission v. Co'rt o$ Appea&s)-krl&& and P!i&ippine Lon% @istance Te&ep!one Co,pan# v. Nationa&
Te&eco,,'nications Co,,ission)+krl&& in ar%'in% t!at t!e Co'rt !as a&read# de$ined t!e ter, ?capita&? in
Section )), Artic&e HII o$ t!e )*+- Constit'tion.)*krl&&
T!e PSE President is %ross&# ,ista:en. In .ot! cases o$ Nationa& Te&eco,,'nications v. Co'rt o$
Appea&s32krl&& and P!i&ippine Lon% @istance Te&ep!one Co,pan# v. Nationa& Te&eco,,'nications
Co,,ission,3)krl&& t!e Co'rt did not de$ine t!e ter, ?capita&? as $o'nd in Section )), Artic&e HII o$ t!e
)*+- Constit'tion. In $act, t!ese t"o cases never ,entioned, disc'ssed or cited Section )), Artic&e HII o$
t!e Constit'tion or an# o$ its econo,ic provisions, and t!'s cannot serve as precedent in t!e
interpretation o$ Section )), Artic&e HII o$ t!e Constit'tion. T!ese t"o cases dea&t so&e&# "it! t!e
deter,ination o$ t!e correct re%'&ator# $ees 'nder Section 427e8 and 7$8 o$ t!e P'.&ic Service Act, to "it
7e8 For ann'a& rei,.'rse,ent o$ t!e e9penses inc'rred .# t!e Co,,ission in t!e s'pervision o$ ot!er
p'.&ic services andOor in t!e re%'&ation or $i9in% o$ t!eir rates, t"ent# centavos $or eac! one !'ndred
pesos or $raction t!ereo$, o$ t!e capita& stoc: s'.scri.ed or paid, or i$ no s!ares !ave .een iss'ed, o$ t!e
capita& invested, or o$ t!e propert# and e<'ip,ent "!ic!ever is !i%!er.
7$8 For t!e iss'e or increase o$ capita& stoc:, t"ent# centavos $or eac! one !'ndred pesos or $raction
t!ereo$, o$ t!e increased capita&. 7E,p!asis s'pp&ied8
T!e Co'rts interpretation in t!ese t"o cases o$ t!e ter,s ?capita& stoc: s'.scri.ed or paid,? ?capita& stoc:?
and ?capita&? does not pertain to, and cannot contro&, t!e de$inition o$ t!e ter, ?capita&? as 'sed in Section
)), Artic&e HII o$ t!e Constit'tion, or an# o$ t!e econo,ic provisions o$ t!e Constit'tion "!ere t!e ter,
?capita&? is $o'nd. T!e de$inition o$ t!e ter, ?capita&? $o'nd in t!e Constit'tion ,'st not .e ta:en o't o$
conte9t. A care$'& readin% o$ t!ese t"o cases revea&s t!at t!e ter,s ?capita& stoc: s'.scri.ed or paid,?
?capita& stoc:? and ?capita&? "ere de$ined so&e&# to deter,ine t!e .asis $or co,p'tin% t!e s'pervision and
re%'&ation $ees 'nder Section 427e8 and 7$8 o$ t!e P'.&ic Service Act.
III.
Fi&ipiniJation o$ P'.&ic Uti&ities
T!e Prea,.&e o$ t!e )*+- Constit'tion, as t!e pro&o%'e o$ t!e s'pre,e &a" o$ t!e &and, e,.odies t!e
idea&s t!at t!e Constit'tion intends to ac!ieve.33krl&& T!e Prea,.&e reads
=e, t!e soverei%n Fi&ipino peop&e, i,p&orin% t!e aid o$ A&,i%!t# God, in order to .'i&d a 5'st and !',ane
societ#, and esta.&is! a Govern,ent t!at s!a&& e,.od# o'r idea&s and aspirations, pro,ote t!e co,,on
%ood, conserve and deve&op o'r patri,on#, and sec're to o'rse&ves and o'r posterit#, t!e .&essin%s o$
independence and de,ocrac# 'nder t!e r'&e o$ &a" and a re%i,e o$ tr't!, 5'stice, $reedo,, &ove, e<'a&it#,
and peace, do ordain and pro,'&%ate t!is Constit'tion. 7E,p!asis s'pp&ied8
Consistent "it! t!ese idea&s, Section )*, Artic&e II o$ t!e )*+- Constit'tion dec&ares as State po&ic# t!e
deve&op,ent o$ a nationa& econo,# ?e$$ective&# contro&&ed? .# Fi&ipinos
Section )*. T!e State s!a&& deve&op a se&$1re&iant and independent nationa& econo,# e$$ective&# contro&&ed
.# Fi&ipinos.
Forti$#in% t!e State po&ic# o$ a Fi&ipino1contro&&ed econo,#, t!e Constit'tion decrees
Section )2. T!e Con%ress s!a&&, 'pon reco,,endation o$ t!e econo,ic and p&annin% a%enc#, "!en t!e
nationa& interest dictates, reserve to citiJens o$ t!e P!i&ippines or to corporations or associations at &east
si9t# per cent', o$ "!ose capita& is o"ned .# s'c! citiJens, or s'c! !i%!er percenta%e as Con%ress ,a#
prescri.e, certain areas o$ invest,ents. T!e Con%ress s!a&& enact ,eas'res t!at "i&& enco'ra%e t!e
$or,ation and operation o$ enterprises "!ose capita& is "!o&&# o"ned .# Fi&ipinos.
In t!e %rant o$ ri%!ts, privi&e%es, and concessions coverin% t!e nationa& econo,# and patri,on#, t!e State
s!a&& %ive pre$erence to <'a&i$ied Fi&ipinos.
T!e State s!a&& re%'&ate and e9ercise a't!orit# over $orei%n invest,ents "it!in its nationa& 5'risdiction and
in accordance "it! its nationa& %oa&s and priorities.3(krl&&
Under Section )2, Artic&e HII o$ t!e )*+- Constit'tion, Con%ress ,a# ?reserve to citiJens o$ t!e P!i&ippines
or to corporations or associations at &east si9t# per cent', o$ "!ose capita& is o"ned .# s'c! citiJens, or
s'c! !i%!er percenta%e as Con%ress ,a# prescri.e, certain areas o$ invest,ents.? T!'s, in n',ero's
&a"s Con%ress !as reserved certain areas o$ invest,ents to Fi&ipino citiJens or to corporations at &east
si9t# percent o$ t!e ?capita&? o$ "!ic! is o"ned .# Fi&ipino citiJens. So,e o$ t!ese &a"s are 7)8 Re%'&ation
o$ A"ard o$ Govern,ent Contracts or R.A. No. 0)+(D 738 P!i&ippine Inventors Incentives Act or R.A. No.
(+02D 7(8 Ma%na Carta $or Micro, S,a&& and Medi', Enterprises or R.A. No. ;*--D 748 P!i&ippine
Overseas S!ippin% @eve&op,ent Act or R.A. No. -4-)D 708 @o,estic S!ippin% @eve&op,ent Act o$ 3224
or R.A. No. *3*0D 7;8 P!i&ippine Tec!no&o%# Trans$er Act o$ 322* or R.A. No. )2200D and 7-8 S!ip
Mort%a%e @ecree or P.@. No. )03).
=it! respect to p'.&ic 'ti&ities, t!e )*+- Constit'tion speci$ica&&# ordains
Section )). No $ranc!ise, certi$icate, or an# ot!er $or, o$ a't!oriJation $or t!e operation o$ a p'.&ic 'ti&it#
s!a&& .e %ranted e9cept to citiJens o$ t!e P!i&ippines or to corporations or associations or%aniJed 'nder
t!e &a"s o$ t!e P!i&ippines, at &east si9t# per cent', o$ "!ose capita& is o"ned .# s'c! citiJensD nor s!a&&
s'c! $ranc!ise, certi$icate, or a't!oriJation .e e9c&'sive in c!aracter or $or a &on%er period t!an $i$t# #ears.
Neit!er s!a&& an# s'c! $ranc!ise or ri%!t .e %ranted e9cept 'nder t!e condition t!at it s!a&& .e s'.5ect to
a,end,ent, a&teration, or repea& .# t!e Con%ress "!en t!e co,,on %ood so re<'ires. T!e State s!a&&
enco'ra%e e<'it# participation in p'.&ic 'ti&ities .# t!e %enera& p'.&ic. T!e participation o$ $orei%n investors
in t!e %overnin% .od# o$ an# p'.&ic 'ti&it# enterprise s!a&& .e &i,ited to t!eir proportionate s!are in its
capita&, and a&& t!e e9ec'tive and ,ana%in% o$$icers o$ s'c! corporation or association ,'st .e citiJens o$
t!e P!i&ippines. 7E,p!asis s'pp&ied8
T!is provision, "!ic! ,andates t!e Fi&ipiniJation o$ p'.&ic 'ti&ities, re<'ires t!at an# $or, o$ a't!oriJation
$or t!e operation o$ p'.&ic 'ti&ities s!a&& .e %ranted on&# to ?citiJens o$ t!e P!i&ippines or to corporations or
associations or%aniJed 'nder t!e &a"s o$ t!e P!i&ippines at &east si9t# per cent', o$ "!ose capita& is
o"ned .# s'c! citiJens.? ?T!e provision is Ean e9pressF reco%nition o$ t!e sensitive and vita& position o$
p'.&ic 'ti&ities .ot! in t!e nationa& econo,# and $or nationa& sec'rit#.?34krl&&
T!e )*+- Constit'tion reserves t!e o"ners!ip and operation o$ p'.&ic 'ti&ities e9c&'sive&# to 7)8 Fi&ipino
citiJens, or 738 corporations or associations at &east ;2 percent o$ "!ose ?capita&? is o"ned .# Fi&ipino
citiJens. Hence, in t!e case o$ individ'a&s, on&# Fi&ipino citiJens can va&id&# o"n and operate a p'.&ic 'ti&it#.
In t!e case o$ corporations or associations, at &east ;2 percent o$ t!eir ?capita&? ,'st .e o"ned .# Fi&ipino
citiJens. In ot!er "ords, 'nder Section )), Artic&e HII o$ t!e )*+- Constit'tion, to o"n and operate a p'.&ic
'ti&it# a corporations capita& ,'st at &east .e ;2 percent o"ned .# P!i&ippine nationa&s.
II.
@e$inition o$ ?P!i&ippine Nationa&?
P'rs'ant to t!e e9press ,andate o$ Section )), Artic&e HII o$ t!e )*+- Constit'tion, Con%ress enacted
Rep'.&ic Act No. -243 or t!e Forei%n Invest,ents Act o$ )**) 7FIA8, as a,ended, "!ic! de$ined a
?P!i&ippine nationa&? as $o&&o"s
SEC. (. @e$initions. 1 As 'sed in t!is Actc!anro.&esvirt'a&&a"&i.rar#
a. T!e ter, ?P!i&ippine nationa&? s!a&& ,ean a citiJen o$ t!e P!i&ippinesD or a do,estic partners!ip or
association "!o&&# o"ned .# citiJens o$ t!e P!i&ippinesD or a corporation or%aniJed 'nder t!e &a"s o$ t!e
P!i&ippines o$ "!ic! at &east si9t# percent 7;2P8 o$ t!e capita& stoc: o'tstandin% and entit&ed to vote is
o"ned and !e&d .# citiJens o$ t!e P!i&ippinesD or a corporation or%aniJed a.road and re%istered as doin%
.'siness in t!e P!i&ippines 'nder t!e Corporation Code o$ "!ic! one !'ndred percent 7)22P8 o$ t!e
capita& stoc: o'tstandin% and entit&ed to vote is "!o&&# o"ned .# Fi&ipinos or a tr'stee o$ $'nds $or pension
or ot!er e,p&o#ee retire,ent or separation .ene$its, "!ere t!e tr'stee is a P!i&ippine nationa& and at &east
si9t# percent 7;2P8 o$ t!e $'nd "i&& accr'e to t!e .ene$it o$ P!i&ippine nationa&s Provided, T!at "!ere a
corporation and its non1Fi&ipino stoc:!o&ders o"n stoc:s in a Sec'rities and E9c!an%e Co,,ission 7SEC8
re%istered enterprise, at &east si9t# percent 7;2P8 o$ t!e capita& stoc: o'tstandin% and entit&ed to vote o$
eac! o$ .ot! corporations ,'st .e o"ned and !e&d .# citiJens o$ t!e P!i&ippines and at &east si9t# percent
7;2P8 o$ t!e ,e,.ers o$ t!e 6oard o$ @irectors o$ eac! o$ .ot! corporations ,'st .e citiJens o$ t!e
P!i&ippines, in order t!at t!e corporation, s!a&& .e considered a ?P!i&ippine nationa&.? 76o&d$acin%,
ita&iciJation and 'nderscorin% s'pp&ied8
T!'s, t!e FIA c&ear&# and 'ne<'ivoca&&# de$ines a ?P!i&ippine nationa&? as a P!i&ippine citiJen, or a
do,estic corporation at &east ?;2P o$ t!e capita& stoc: o'tstandin% and entit&ed to vote? is o"ned .#
P!i&ippine citiJens.
T!e de$inition o$ a ?P!i&ippine nationa&? in t!e FIA reiterated t!e ,eanin% o$ s'c! ter, as provided in its
predecessor stat'te, E9ec'tive Order No. 33; or t!e O,ni.'s Invest,ents Code o$ )*+-,30krl&& "!ic!
"as iss'ed .# t!en President CoraJon C. A<'ino. Artic&e )0 o$ t!is Code states
Artic&e )0. ?P!i&ippine nationa&? s!a&& ,ean a citiJen o$ t!e P!i&ippines or a dip&o,atic partners!ip or
association "!o&&#1o"ned .# citiJens o$ t!e P!i&ippinesD or a corporation or%aniJed 'nder t!e &a"s o$ t!e
P!i&ippines o$ "!ic! at &east si9t# per cent 7;2P8 o$ t!e capita& stoc: o'tstandin% and entit&ed to vote is
o"ned and !e&d .# citiJens o$ t!e P!i&ippinesD or a tr'stee o$ $'nds $or pension or ot!er e,p&o#ee
retire,ent or separation .ene$its, "!ere t!e tr'stee is a P!i&ippine nationa& and at &east si9t# per cent
7;2P8 o$ t!e $'nd "i&& accr'e to t!e .ene$it o$ P!i&ippine nationa&s Provided, T!at "!ere a corporation and
its non1Fi&ipino stoc:!o&ders o"n stoc: in a re%istered enterprise, at &east si9t# per cent 7;2P8 o$ t!e
capita& stoc: o'tstandin% and entit&ed to vote o$ .ot! corporations ,'st .e o"ned and !e&d .# t!e citiJens
o$ t!e P!i&ippines and at &east si9t# per cent 7;2P8 o$ t!e ,e,.ers o$ t!e 6oard o$ @irectors o$ .ot!
corporations ,'st .e citiJens o$ t!e P!i&ippines in order t!at t!e corporation s!a&& .e considered a
P!i&ippine nationa&. 76o&d$acin%, ita&iciJation and 'nderscorin% s'pp&ied8
Under Artic&e 4+7(83;krl&& o$ t!e O,ni.'s Invest,ents Code o$ )*+-, ?no corporation 9 9 9 "!ic! is not a
P!i&ippine nationa& 9 9 9 s!a&& do .'siness
9 9 9 in t!e P!i&ippines 9 9 9 "it!o't $irst sec'rin% $ro, t!e 6oard o$ Invest,ents a "ritten certi$icate to t!e
e$$ect t!at s'c! .'siness or econo,ic activit# 9 9 9 "o'&d not con$&ict "it! t!e Constit'tion or &a"s o$ t!e
P!i&ippines.?3-krl&& T!'s, a ?non1P!i&ippine nationa&? cannot o"n and operate a reserved econo,ic activit#
&i:e a p'.&ic 'ti&it#. T!is ,eans, o$ co'rse, t!at on&# a ?P!i&ippine nationa&? can o"n and operate a p'.&ic
'ti&it#.
In t'rn, t!e de$inition o$ a ?P!i&ippine nationa&? 'nder Artic&e )0 o$ t!e O,ni.'s Invest,ents Code o$ )*+-
"as a reiteration o$ t!e ,eanin% o$ s'c! ter, as provided in Artic&e )4 o$ t!e O,ni.'s Invest,ents Code
o$ )*+),3+krl&& to "it
Artic&e )4. ?P!i&ippine nationa&? s!a&& ,ean a citiJen o$ t!e P!i&ippinesD or a do,estic partners!ip or
association "!o&&# o"ned .# citiJens o$ t!e P!i&ippinesD or a corporation or%aniJed 'nder t!e &a"s o$ t!e
P!i&ippines o$ "!ic! at &east si9t# per cent 7;2P8 o$ t!e capita& stoc: o'tstandin% and entit&ed to vote is
o"ned and !e&d .# citiJens o$ t!e P!i&ippinesD or a tr'stee o$ $'nds $or pension or ot!er e,p&o#ee
retire,ent or separation .ene$its, "!ere t!e tr'stee is a P!i&ippine nationa& and at &east si9t# per cent
7;2P8 o$ t!e $'nd "i&& accr'e to t!e .ene$it o$ P!i&ippine nationa&s Provided, T!at "!ere a corporation and
its non1Fi&ipino stoc:!o&ders o"n stoc: in a re%istered enterprise, at &east si9t# per cent 7;2P8 o$ t!e
capita& stoc: o'tstandin% and entit&ed to vote o$ .ot! corporations ,'st .e o"ned and !e&d .# t!e citiJens
o$ t!e P!i&ippines and at &east si9t# per cent 7;2P8 o$ t!e ,e,.ers o$ t!e 6oard o$ @irectors o$ .ot!
corporations ,'st .e citiJens o$ t!e P!i&ippines in order t!at t!e corporation s!a&& .e considered a
P!i&ippine nationa&. 76o&d$acin%, ita&iciJation and 'nderscorin% s'pp&ied8
Under Artic&e ;*7(8 o$ t!e O,ni.'s Invest,ents Code o$ )*+), ?no corporation 9 9 9 "!ic! is not a
P!i&ippine nationa& 9 9 9 s!a&& do .'siness 9 9 9 in t!e P!i&ippines 9 9 9 "it!o't $irst sec'rin% a "ritten
certi$icate $ro, t!e 6oard o$ Invest,ents to t!e e$$ect t!at s'c! .'siness or econo,ic activit# 9 9 9 "o'&d
not con$&ict "it! t!e Constit'tion or &a"s o$ t!e P!i&ippines.?3*krl&& T!'s, a ?non1P!i&ippine nationa&? cannot
o"n and operate a reserved econo,ic activit# &i:e a p'.&ic 'ti&it#. A%ain, t!is ,eans t!at on&# a ?P!i&ippine
nationa&? can o"n and operate a p'.&ic 'ti&it#.
Prior to t!e O,ni.'s Invest,ents Code o$ )*+), Rep'.&ic Act No. 0)+;(2krl&& or t!e Invest,ent
Incentives Act, "!ic! too: e$$ect on ); Septe,.er )*;-, contained a si,i&ar de$inition o$ a ?P!i&ippine
nationa&,? to "it
7$8 ?P!i&ippine Nationa&? s!a&& ,ean a citiJen o$ t!e P!i&ippinesD or a partners!ip or association "!o&&#
o"ned .# citiJens o$ t!e P!i&ippinesD or a corporation or%aniJed 'nder t!e &a"s o$ t!e P!i&ippines o$ "!ic!
at &east si9t# per cent o$ t!e capita& stoc: o'tstandin% and entit&ed to vote is o"ned and !e&d .# citiJens o$
t!e P!i&ippinesD or a tr'stee o$ $'nds $or pension or ot!er e,p&o#ee retire,ent or separation .ene$its,
"!ere t!e tr'stee is a P!i&ippine Nationa& and at &east si9t# per cent o$ t!e $'nd "i&& accr'e to t!e .ene$it o$
P!i&ippine Nationa&s Provided, T!at "!ere a corporation and its non1Fi&ipino stoc:!o&ders o"n stoc: in a
re%istered enterprise, at &east si9t# per cent o$ t!e capita& stoc: o'tstandin% and entit&ed to vote o$ .ot!
corporations ,'st .e o"ned and !e&d .# t!e citiJens o$ t!e P!i&ippines and at &east si9t# per cent o$ t!e
,e,.ers o$ t!e 6oard o$ @irectors o$ .ot! corporations ,'st .e citiJens o$ t!e P!i&ippines in order t!at
t!e corporation s!a&& .e considered a P!i&ippine Nationa&. 76o&d$acin%, ita&iciJation and 'nderscorin%
s'pp&ied8
Under Section ( o$ Rep'.&ic Act No. 0400 or t!e Forei%n 6'siness Re%'&ations Act, "!ic! too: e$$ect on
(2 Septe,.er )*;+, i$ t!e invest,ent in a do,estic enterprise .# non1P!i&ippine nationa&s e9ceeds (2P
o$ its o'tstandin% capita& stoc:, s'c! enterprise ,'st o.tain prior approva& $ro, t!e 6oard o$ Invest,ents
.e$ore acceptin% s'c! invest,ent. S'c! approva& s!a&& not .e %ranted i$ t!e invest,ent ?"o'&d con$&ict
"it! e9istin% constit'tiona& provisions and &a"s re%'&atin% t!e de%ree o$ re<'ired o"ners!ip .# P!i&ippine
nationa&s in t!e enterprise.?()krl&& A ?non1P!i&ippine nationa&? cannot o"n and operate a reserved
econo,ic activit# &i:e a p'.&ic 'ti&it#. A%ain, t!is ,eans t!at on&# a ?P!i&ippine nationa&? can o"n and
operate a p'.&ic 'ti&it#.
T!e FIA, &i:e a&& its predecessor stat'tes, c&ear&# de$ines a ?P!i&ippine nationa&? as a Fi&ipino citiJen, or a
do,estic corporation ?at &east si9t# percent 7;2P8 o$ t!e capita& stoc: o'tstandin% and entit&ed to vote? is
o"ned .# Fi&ipino citiJens. A do,estic corporation is a ?P!i&ippine nationa&? on&# i$ at &east ;2P o$ its
votin% stoc: is o"ned .# Fi&ipino citiJens. T!is de$inition o$ a ?P!i&ippine nationa&? is cr'cia& in t!e present
case .eca'se t!e FIA reiterates and c&ari$ies Section )), Artic&e HII o$ t!e )*+- Constit'tion, "!ic! &i,its
t!e o"ners!ip and operation o$ p'.&ic 'ti&ities to Fi&ipino citiJens or to corporations or associations at &east
;2P Fi&ipino1o"ned.
T!e FIA is t!e .asic &a" %overnin% $orei%n invest,ents in t!e P!i&ippines, irrespective o$ t!e nat're o$
.'siness and area o$ invest,ent. T!e FIA spe&&s o't t!e proced'res .# "!ic! non1P!i&ippine nationa&s can
invest in t!e P!i&ippines. A,on% t!e :e# $eat'res o$ t!is &a" is t!e concept o$ a ne%ative &ist or t!e Forei%n
Invest,ents Ne%ative List.(3krl&& Section + o$ t!e &a" states
SEC. +. List o$ Invest,ent Areas Reserved to P!i&ippine Nationa&s EForei%n Invest,ent Ne%ative ListF. 1
T!e Forei%n Invest,ent Ne%ative List s!a&& !ave t"o 3krl&& co,ponent &ists A and
6c!anro.&esvirt'a&&a"&i.rar#
a. List A s!a&& en',erate t!e areas o$ activities reserved to P!i&ippine nationa&s .# ,andate o$ t!e
Constit'tion and speci$ic &a"s.
.. List 6 s!a&& contain t!e areas o$ activities and enterprises re%'&ated p'rs'ant to
&a"c!anro.&esvirt'a&&a"&i.rar#
). "!ic! are de$ense1re&ated activities, re<'irin% prior c&earance and a't!oriJation $ro, t!e @epart,ent o$
Nationa& @e$ense E@N@F to en%a%e in s'c! activit#, s'c! as t!e ,an'$act're, repair, stora%e andOor
distri.'tion o$ $irear,s, a,,'nition, &et!a& "eapons, ,i&itar# ordinance, e9p&osives, p#rotec!nics and
si,i&ar ,ateria&sD 'n&ess s'c! ,an'$act'rin% or repair activit# is speci$ica&&# a't!oriJed, "it! a s'.stantia&
e9port co,ponent, to a non1P!i&ippine nationa& .# t!e Secretar# o$ Nationa& @e$enseD or
3. "!ic! !ave i,p&ications on p'.&ic !ea&t! and ,ora&s, s'c! as t!e ,an'$act're and distri.'tion o$
dan%ero's dr'%sD a&& $or,s o$ %a,.&in%D ni%!tc&'.s, .ars, .eer !o'ses, dance !a&&s, sa'na and stea,
.at!!o'ses and ,assa%e c&inics. 76o&d$acin%, 'nderscorin% and ita&iciJation s'pp&ied8
Section + o$ t!e FIA en',erates t!e invest,ent areas ?reserved to P!i&ippine nationa&s.? Forei%n
Invest,ent Ne%ative List A consists o$ ?areas o$ activities reserved to P!i&ippine nationa&s .# ,andate o$
t!e Constit'tion and speci$ic &a"s,? "!ere $orei%n e<'it# participation in an# enterprise s!a&& .e &i,ited to
t!e ,a9i,', percenta%e e9press&# prescri.ed .# t!e Constit'tion and ot!er speci$ic &a"s. In s!ort, to
o"n and operate a p'.&ic 'ti&it# in t!e P!i&ippines one ,'st .e a ?P!i&ippine nationa&? as de$ined in t!e
FIA. T!e FIA is a.'ndant notice to $orei%n investors to "!at e9tent t!e# can invest in p'.&ic 'ti&ities in t!e
P!i&ippines.
To repeat, a,on% t!e areas o$ invest,ent covered .# t!e Forei%n Invest,ent Ne%ative List A is t!e
o"ners!ip and operation o$ p'.&ic 'ti&ities, "!ic! t!e Constit'tion e9press&# reserves to Fi&ipino citiJens
and to corporations at &east ;2P o"ned .# Fi&ipino citiJens. In ot!er "ords, Ne%ative List A o$ t!e FIA
reserves t!e o"ners!ip and operation o$ p'.&ic 'ti&ities on&# to ?P!i&ippine nationa&s,? de$ined in Section
(7a8 o$ t!e FIA as ?7)8 a citiJen o$ t!e P!i&ippinesD 9 9 9 or 7(8 a corporation or%aniJed 'nder t!e &a"s o$
t!e P!i&ippines o$ "!ic! at &east si9t# percent 7;2P8 o$ t!e capita& stoc: o'tstandin% and entit&ed to vote is
o"ned and !e&d .# citiJens o$ t!e P!i&ippinesD or 748 a corporation or%aniJed a.road and re%istered as
doin% .'siness in t!e P!i&ippines 'nder t!e Corporation Code o$ "!ic! one !'ndred percent 7)22P8 o$ t!e
capita& stoc: o'tstandin% and entit&ed to vote is "!o&&# o"ned .# Fi&ipinos or a tr'stee o$ $'nds $or pension
or ot!er e,p&o#ee retire,ent or separation .ene$its, "!ere t!e tr'stee is a P!i&ippine nationa& and at &east
si9t# percent 7;2P8 o$ t!e $'nd "i&& accr'e to t!e .ene$it o$ P!i&ippine nationa&s.?
C&ear&#, $ro, t!e e$$ectivit# o$ t!e Invest,ent Incentives Act o$ )*;- to t!e adoption o$ t!e O,ni.'s
Invest,ents Code o$ )*+), to t!e enact,ent o$ t!e O,ni.'s Invest,ents Code o$ )*+-, and to t!e
passa%e o$ t!e present Forei%n Invest,ents Act o$ )**), or $or ,ore t!an $o'r decades, t!e stat'tor#
de$inition o$ t!e ter, ?P!i&ippine nationa&? !as .een 'ni$or, and consistent it ,eans a Fi&ipino citiJen, or a
do,estic corporation at &east ;2P o$ t!e votin% stoc: is o"ned .# Fi&ipinos. Li:e"ise, t!ese sa,e stat'tes
!ave 'ni$or,&# and consistent&# re<'ired t!at on&# ?P!i&ippine nationa&s? co'&d o"n and operate p'.&ic
'ti&ities in t!e P!i&ippines. T!e $o&&o"in% e9c!an%e d'rin% t!e Ora& Ar%',ents is revea&in%
CUSTICE CARPIO
Co'nse&, I !ave so,e <'estions. Bo' are a"are o$ t!e Forei%n Invest,ents Act o$ )**), 9 9 9R And t!e
FIA o$ )**) too: e$$ect in )**), correctR T!ats over t"ent# 7328 #ears a%o, correctR
COMMISSIONER GAITE
Correct, Bo'r Honor.
CUSTICE CARPIO
And Section + o$ t!e Forei%n Invest,ents Act o$ )**) states t!at EFon&# P!i&ippine nationa&s can o"n and
operate p'.&ic 'ti&itiesEF, correctR
COMMISSIONER GAITE
Bes, Bo'r Honor.
CUSTICE CARPIO
And t!e sa,e Forei%n Invest,ents Act o$ )**) de$ines a ?P!i&ippine nationa&? eit!er as a citiJen o$ t!e
P!i&ippines, or i$ it is a corporation at &east si9t# percent 7;2P8 o$ t!e votin% stoc: is o"ned .# citiJens o$
t!e P!i&ippines, correctR
COMMISSIONER GAITE
Correct, Bo'r Honor.
CUSTICE CARPIO
And, #o' are a&so a"are t!at 'nder t!e predecessor &a" o$ t!e Forei%n Invest,ents Act o$ )**), t!e
O,ni.'s Invest,ents Act o$ )*+-, t!e sa,e provisions app&# 9 9 9 on&# P!i&ippine nationa&s can o"n and
operate a p'.&ic 'ti&it# and t!e P!i&ippine nationa&, i$ it is a corporation, 9 9 9 si9t# percent 7;2P8 o$ t!e
capita& stoc: o$ t!at corporation ,'st .e o"ned .# citiJens o$ t!e P!i&ippines, correctR
COMMISSIONER GAITE
Correct, Bo'r Honor.
CUSTICE CARPIO
And even prior to t!e O,ni.'s Invest,ents Act o$ )*+-, 'nder t!e O,ni.'s Invest,ents Act o$ )*+), t!e
sa,e r'&es app&# 9 9 9 on&# a P!i&ippine nationa& can o"n and operate a p'.&ic 'ti&it# and a P!i&ippine
nationa&, i$ it is a corporation, si9t# percent 7;2P8 o$ its 9 9 9 votin% stoc:, ,'st .e o"ned .# citiJens o$ t!e
P!i&ippines, correctR
COMMISSIONER GAITE
Correct, Bo'r Honor.
CUSTICE CARPIO
And even prior to t!at, 'nder Et!eF)*;- Invest,ents Incentives Act and t!e Forei%n Co,pan# Act o$ )*;+,
t!e sa,e r'&es app&ied, correctR
COMMISSIONER GAITE
Correct, Bo'r Honor.
CUSTICE CARPIO
So, $or t!e &ast $o'r 748 decades, 9 9 9, t!e &a" !as .een ver# consistent on&# a P!i&ippine nationa& can
o"n and operate a p'.&ic 'ti&it#, and a P!i&ippine nationa&, i$ it is a corporation, 9 9 9 at &east si9t# percent
7;2P8 o$ t!e votin% stoc: ,'st .e o"ned .# citiJens o$ t!e P!i&ippines, correctR
COMMISSIONER GAITE
Correct, Bo'r Honor.((krl&& 7E,p!asis s'pp&ied8
Govern,ent a%encies &i:e t!e SEC cannot si,p&# i%nore Sections (7a8 and + o$ t!e FIA "!ic!
cate%orica&&# prescri.e t!at certain econo,ic activities, &i:e t!e o"ners!ip and operation o$ p'.&ic 'ti&ities,
are reserved to corporations ?at &east si9t# percent 7;2P8 o$ t!e capita& stoc: o'tstandin% and entit&ed to
vote is o"ned and !e&d .# citiJens o$ t!e P!i&ippines.? Forei%n Invest,ent Ne%ative List A re$ers to
?activities reserved to P!i&ippine nationa&s .# ,andate o$ t!e Constit'tion and speci$ic &a"s.? T!e FIA is
t!e .asic stat'te re%'&atin% $orei%n invest,ents in t!e P!i&ippines. Govern,ent a%encies tas:ed "it!
re%'&atin% or ,onitorin% $orei%n invest,ents, as "e&& as co'nse&s o$ $orei%n investors, s!o'&d start "it! t!e
FIA in deter,inin% to "!at e9tent a partic'&ar $orei%n invest,ent is a&&o"ed in t!e P!i&ippines. Forei%n
investors and t!eir co'nse&s "!o i%nore t!e FIA do so at t!eir o"n peri&. Forei%n investors and t!eir
co'nse&s "!o re&# on opinions o$ SEC &e%a& o$$icers t!at o.vio's&# contradict t!e FIA do so a&so at t!eir
o"n peri&.
Occasiona& opinions o$ SEC &e%a& o$$icers t!at o.vio's&# contradict t!e FIA s!o'&d i,,ediate&# raise a red
$&a%. T!ere are a&read# n',ero's opinions o$ SEC &e%a& o$$icers t!at cite t!e de$inition o$ a ?P!i&ippine
nationa&? in Section (7a8 o$ t!e FIA in deter,inin% "!et!er a partic'&ar corporation is <'a&i$ied to o"n and
operate a nationa&iJed or partia&&# nationa&iJed .'siness in t!e P!i&ippines. T!is s!o"s t!at SEC &e%a&
o$$icers are not on&# a"are o$, .'t a&so re&# on and invo:e, t!e provisions o$ t!e FIA in ascertainin% t!e
e&i%i.i&it# o$ a corporation to en%a%e in partia&&# nationa&iJed ind'stries. T!e $o&&o"in% are so,e o$ s'c!
opinions
). Opinion o$ 3( Marc! )**(, addressed to Mr. Francis F. Ho"D
3. Opinion o$ )4 Apri& )**(, addressed to @irector An%e&es T. =on% o$ t!e P!i&ippine Overseas
E,p&o#,ent Ad,inistrationD
(. Opinion o$ 3( Nove,.er )**(, addressed to Messrs. @o,inador A&,eda and Renato S. Ca&,aD
4. Opinion o$ - @ece,.er )**(, addressed to Roco 6'na% Nap'nan Mi%a&&os M Carde&eJaD
0. SEC Opinion No. 4*124, addressed to Ro,'&o Ma.anta 6'enavent'ra Sa#oc M @e Los An%e&esD
;. SEC1OGC Opinion No. )-12-, addressed to Mr. Re#na&do G. @avidD and
-. SEC1OGC Opinion No. 2(12+, addressed to Att#s. R'.# Rose C. B'si and R'd#ard S. Ar.o&ado.
T!e SEC &e%a& o$$icers occasiona& .'t .&atant disre%ard o$ t!e de$inition o$ t!e ter, ?P!i&ippine nationa&? in
t!e FIA si%ni$ies t!eir &ac: o$ inte%rit# and co,petence in reso&vin% iss'es on t!e ;2142 o"ners!ip
re<'ire,ent in $avor o$ Fi&ipino citiJens in Section )), Artic&e HII o$ t!e Constit'tion.
T!e PSE President ar%'es t!at t!e ter, ?P!i&ippine nationa&? de$ined in t!e FIA s!o'&d .e &i,ited and
interpreted to re$er to corporations see:in% to avai& o$ ta9 and $isca& incentives 'nder invest,ent incentives
&a"s and cannot .e e<'ated "it! t!e ter, ?capita&? in Section )), Artic&e HII o$ t!e )*+- Constit'tion.
Pan%i&inan si,i&ar&# contends t!at t!e FIA and its predecessor stat'tes do not app&# to ?co,panies "!ic!
!ave not re%istered and o.tained specia& incentives 'nder t!e sc!e,es esta.&is!ed .# t!ose &a"s.?
6ot! are desperate&# %raspin% at stra"s. T!e FIA does not %rant ta9 or $isca& incentives to an# enterprise.
Ta9 and $isca& incentives to invest,ents are %ranted separate&# 'nder t!e O,ni.'s Invest,ents Code o$
)*+-, not 'nder t!e FIA. In $act, t!e FIA e9press&# repea&ed Artic&es 44 to 0; o$ 6oo: II o$ t!e O,ni.'s
Invest,ents Code o$ )*+-, "!ic! artic&es previo's&# re%'&ated $orei%n invest,ents in nationa&iJed or
partia&&# nationa&iJed ind'stries.
T!e FIA is t!e app&ica.&e &a" re%'&atin% $orei%n invest,ents in nationa&iJed or partia&&# nationa&iJed
ind'stries. T!ere is not!in% in t!e FIA, or even in t!e O,ni.'s Invest,ents Code o$ )*+- or its
predecessor stat'tes, t!at states, e9press&# or i,p&ied&#, t!at t!e FIA or its predecessor stat'tes do not
app&# to enterprises not avai&in% o$ ta9 and $isca& incentives 'nder t!e Code. T!e FIA and its predecessor
stat'tes app&# to invest,ents in a&& do,estic enterprises, "!et!er or not s'c! enterprises en5o# ta9 and
$isca& incentives 'nder t!e O,ni.'s Invest,ents Code o$ )*+- or its predecessor stat'tes. T!e reason is
<'ite o.vio's ,ere non1avai&,ent o$ ta9 and $isca& incentives .# a non1P!i&ippine nationa& cannot e9e,pt
it $ro, Section )), Artic&e HII o$ t!e Constit'tion re%'&atin% $orei%n invest,ents in p'.&ic 'ti&ities. In $act,
t!e 6oard o$ Invest,ents Pri,er on Invest,ent Po&icies in t!e P!i&ippines,(4krl&& "!ic! is %iven o't to
$orei%n investors, provides
PART III. FOREIGN INIESTMENTS =ITHOUT INCENTIIES
Investors "!o do not see: incentives andOor "!ose c!osen activities do not <'a&i$# $or incentives, 7i.e., t!e
activit# is not &isted in t!e IPP, and t!e# are not e9portin% at &east -2P o$ t!eir prod'ction8 ,a# %o a!ead
and ,a:e t!e invest,ents "it!o't see:in% incentives. T!e# on&# !ave to .e %'ided .# t!e Forei%n
Invest,ents Ne%ative List 7FINL8.
T!e FINL c&ear&# de$ines invest,ent areas re<'irin% at &east ;2P Fi&ipino o"ners!ip. A&& ot!er areas
o'tside o$ t!is &ist are $'&&# open to $orei%n investors. 7E,p!asis s'pp&ied8
I.
Ri%!t to e&ect directors, co'p&ed "it! .ene$icia& o"ners!ip,
trans&ates to e$$ective contro&.
T!e 3+ C'ne 32)) @ecision dec&ares t!at t!e ;2 percent Fi&ipino o"ners!ip re<'ired .# t!e Constit'tion to
en%a%e in certain econo,ic activities app&ies not on&# to votin% contro& o$ t!e corporation, .'t a&so to t!e
.ene$icia& o"ners!ip o$ t!e corporation. To repeat, "e !e&d
Mere &e%a& tit&e is ins'$$icient to ,eet t!e ;2 percent Fi&ipino1o"ned ?capita&? re<'ired in t!e Constit'tion.
F'&& .ene$icia& o"ners!ip o$ ;2 percent o$ t!e o'tstandin% capita& stoc:, co'p&ed "it! ;2 percent o$ t!e
votin% ri%!ts, is re<'ired. T!e &e%a& and .ene$icia& o"ners!ip o$ ;2 percent o$ t!e o'tstandin% capita& stoc:
,'st rest in t!e !ands o$ Fi&ipino nationa&s in accordance "it! t!e constit'tiona& ,andate. Ot!er"ise, t!e
corporation is ?considered as non1P!i&ippine nationa&EsF.? 7E,p!asis s'pp&ied8
T!is is consistent "it! Section ( o$ t!e FIA "!ic! provides t!at "!ere )22P o$ t!e capita& stoc: is !e&d .#
?a tr'stee o$ $'nds $or pension or ot!er e,p&o#ee retire,ent or separation .ene$its,? t!e tr'stee is a
P!i&ippine nationa& i$ ?at &east si9t# percent 7;2P8 o$ t!e $'nd "i&& accr'e to t!e .ene$it o$ P!i&ippine
nationa&s.? Li:e"ise, Section )7.8 o$ t!e I,p&e,entin% R'&es o$ t!e FIA provides t!at ?$or stoc:s to .e
dee,ed o"ned and !e&d .# P!i&ippine citiJens or P!i&ippine nationa&s, ,ere &e%a& tit&e is not eno'%! to
,eet t!e re<'ired Fi&ipino e<'it#. F'&& .ene$icia& o"ners!ip o$ t!e stoc:s, co'p&ed "it! appropriate votin%
ri%!ts, is essentia&.?
Since t!e constit'tiona& re<'ire,ent o$ at &east ;2 percent Fi&ipino o"ners!ip app&ies not on&# to votin%
contro& o$ t!e corporation .'t a&so to t!e .ene$icia& o"ners!ip o$ t!e corporation, it is t!ere$ore i,perative
t!at s'c! re<'ire,ent app&# 'ni$or,&# and across t!e .oard to a&& c&asses o$ s!ares, re%ard&ess o$
no,enc&at're and cate%or#, co,prisin% t!e capita& o$ a corporation. Under t!e Corporation Code, capita&
stoc:(0krl&& consists o$ a&& c&asses o$ s!ares iss'ed to stoc:!o&ders, t!at is, co,,on s!ares as "e&& as
pre$erred s!ares, "!ic! ,a# !ave di$$erent ri%!ts, privi&e%es or restrictions as stated in t!e artic&es o$
incorporation.(;krl&&
T!e Corporation Code a&&o"s denia& o$ t!e ri%!t to vote to pre$erred and redee,a.&e s!ares, .'t disa&&o"s
denia& o$ t!e ri%!t to vote in speci$ic corporate ,atters. T!'s, co,,on s!ares !ave t!e ri%!t to vote in t!e
e&ection o$ directors, "!i&e pre$erred s!ares ,a# .e denied s'c! ri%!t. Nonet!e&ess, pre$erred s!ares,
even i$ denied t!e ri%!t to vote in t!e e&ection o$ directors, are entit&ed to vote on t!e $o&&o"in% corporate
,atters 7)8 a,end,ent o$ artic&es o$ incorporationD 738 increase and decrease o$ capita& stoc:D 7(8
inc'rrin%, creatin% or increasin% .onded inde.tednessD 748 sa&e, &ease, ,ort%a%e or ot!er disposition o$
s'.stantia&&# a&& corporate assetsD 708 invest,ent o$ $'nds in anot!er .'siness or corporation or $or a
p'rpose ot!er t!an t!e pri,ar# p'rpose $or "!ic! t!e corporation "as or%aniJedD 7;8 adoption,
a,end,ent and repea& o$ .#1&a"sD 7-8 ,er%er and conso&idationD and 7+8 disso&'tion o$ corporation.(-krl&&
Since a speci$ic c&ass o$ s!ares ,a# !ave ri%!ts and privi&e%es or restrictions di$$erent $ro, t!e rest o$ t!e
s!ares in a corporation, t!e ;2142 o"ners!ip re<'ire,ent in $avor o$ Fi&ipino citiJens in Section )), Artic&e
HII o$ t!e Constit'tion ,'st app&# not on&# to s!ares "it! votin% ri%!ts .'t a&so to s!ares "it!o't votin%
ri%!ts. Pre$erred s!ares, denied t!e ri%!t to vote in t!e e&ection o$ directors, are an#"a# sti&& entit&ed to
vote on t!e ei%!t speci$ic corporate ,atters ,entioned a.ove. T!'s, i$ a corporation, en%a%ed in a
partia&&# nationa&iJed ind'str#, iss'es a ,i9t're o$ co,,on and pre$erred non1votin% s!ares, at &east ;2
percent o$ t!e co,,on s!ares and at &east ;2 percent o$ t!e pre$erred non1votin% s!ares ,'st .e o"ned
.# Fi&ipinos. O$ co'rse, i$ a corporation iss'es on&# a sin%&e c&ass o$ s!ares, at &east ;2 percent o$ s'c!
s!ares ,'st necessari&# .e o"ned .# Fi&ipinos. In s!ort, t!e ;2142 o"ners!ip re<'ire,ent in $avor o$
Fi&ipino citiJens ,'st app&# separate&# to eac! c&ass o$ s!ares, "!et!er co,,on, pre$erred non1votin%,
pre$erred votin% or an# ot!er c&ass o$ s!ares. T!is 'ni$or, app&ication o$ t!e ;2142 o"ners!ip re<'ire,ent
in $avor o$ Fi&ipino citiJens c&ear&# .reat!es &i$e to t!e constit'tiona& co,,and t!at t!e o"ners!ip and
operation o$ p'.&ic 'ti&ities s!a&& .e reserved e9c&'sive&# to corporations at &east ;2 percent o$ "!ose
capita& is Fi&ipino1o"ned. App&#in% 'ni$or,&# t!e ;2142 o"ners!ip re<'ire,ent in $avor o$ Fi&ipino citiJens
to eac! c&ass o$ s!ares, re%ard&ess o$ di$$erences in votin% ri%!ts, privi&e%es and restrictions, %'arantees
e$$ective Fi&ipino contro& o$ p'.&ic 'ti&ities, as ,andated .# t!e Constit'tion.
Moreover, s'c! 'ni$or, app&ication to eac! c&ass o$ s!ares ins'res t!at t!e ?contro&&in% interest? in p'.&ic
'ti&ities a&"a#s &ies in t!e !ands o$ Fi&ipino citiJens. T!is addresses and e9tin%'is!es Pan%i&inans "orr#
t!at $orei%ners, o"nin% ,ost o$ t!e non1votin% s!ares, "i&& e9ercise %reater contro& over $'nda,enta&
corporate ,atters re<'irin% t"o1t!irds or ,a5orit# vote o$ a&& s!are!o&ders.
II.
Intent o$ t!e $ra,ers o$ t!e Constit'tion
=!i&e C'stice Ie&asco <'oted in !is @issentin% Opinion(+krl&& a portion o$ t!e de&i.erations o$ t!e
Constit'tiona& Co,,ission to s'pport !is c&ai, t!at t!e ter, ?capita&? re$ers to t!e tota& o'tstandin%
s!ares o$ stoc:, "!et!er votin% or non1votin%, t!e $o&&o"in% e9cerpts o$ t!e de&i.erations revea& ot!er"ise.
It is c&ear $ro, t!e $o&&o"in% e9c!an%e t!at t!e ter, ?capita&? re$ers to contro&&in% interest o$ a corporation,
t!'s
MR. NOLLE@O. In Sections (, * and )0, t!e Co,,ittee stated &oca& or Fi&ipino e<'it# and $orei%n e<'it#D
na,e&#, ;2142 in Section (, ;2142 in Section * and 3O(1)O( in Section )0.
MR. IILLEGAS. T!at is ri%!t.
MR. NOLLE@O. In teac!in% &a", "e are a&"a#s $aced "it! t!is <'estion ?=!ere do "e .ase t!e e<'it#
re<'ire,ent, is it on t!e a't!oriJed capita& stoc:, on t!e s'.scri.ed capita& stoc:, or on t!e paid1'p capita&
stoc: o$ a corporation?R =i&& t!e Co,,ittee p&ease en&i%!ten ,e on t!isR
MR. IILLEGAS. =e !ave 5'st !ad a &on% disc'ssion "it! t!e ,e,.ers o$ t!e tea, $ro, t!e UP La"
Center "!o provided 's a dra$t. T!e p!rase t!at is contained !ere "!ic! "e adopted $ro, t!e UP dra$t is
?;2 percent o$ votin% stoc:.?
MR. NOLLE@O. T!at ,'st .e .ased on t!e s'.scri.ed capita& stoc:, .eca'se 'n&ess dec&ared
de&in<'ent, 'npaid capita& stoc: s!a&& .e entit&ed to vote.
MR. IILLEGAS. T!at is ri%!t.
MR. NOLLE@O. T!an: #o'.
=it! respect to an invest,ent .# one corporation in anot!er corporation, sa#, a corporation "it! ;2142
percent e<'it# invests in anot!er corporation "!ic! is per,itted .# t!e Corporation Code, does t!e
Co,,ittee adopt t!e %rand$at!er r'&eR
MR. IILLEGAS. Bes, t!at is t!e 'nderstandin% o$ t!e Co,,ittee.
MR. NOLLE@O. T!ere$ore, "e need additiona& Fi&ipino capita&R
MR. IILLEGAS. Bes.(*krl&&
9 9 9 9
MR. AcCUNA. Ma# I .e c&ari$ied as to t!at portion t!at "as accepted .# t!e Co,,ittee.
MR. IILLEGAS. T!e portion accepted .# t!e Co,,ittee is t!e de&etion o$ t!e p!rase ?votin% stoc: or
contro&&in% interest.?
MR. AcCUNA. Hence, "it!o't t!e @avide a,end,ent, t!e co,,ittee report "o'&d read ?corporations or
associations at &east si9t# percent o$ "!ose CAPITAL is o"ned .# s'c! citiJens.?
MR. IILLEGAS. Bes.
MR. AcCUNA. So i$ t!e @avide a,end,ent is &ost, "e are st'c: "it! ;2 percent o$ t!e capita& to .e
o"ned .# citiJens.
MR. IILLEGAS. T!at is ri%!t.
MR. AcCUNA. 6't t!e contro& can .e "it! t!e $orei%ners even i$ t!e# are t!e ,inorit#. Let 's sa# 42
percent o$ t!e capita& is o"ned .# t!e,, .'t it is t!e votin% capita&, "!ereas, t!e Fi&ipinos o"n t!e
nonvotin% s!ares. So "e can !ave a sit'ation "!ere t!e corporation is contro&&ed .# $orei%ners despite
.ein% t!e ,inorit# .eca'se t!e# !ave t!e votin% capita&. T!at is t!e ano,a&# t!at "o'&d res'&t !ere.
MR. 6ENGcON. No, t!e reason "e e&i,inated t!e "ord ?stoc:? as stated in t!e )*-( and )*(0
Constit'tions is t!at accordin% to Co,,issioner Rodri%o, t!ere are associations t!at do not !ave stoc:s.
T!at is "!# "e sa# ?CAPITAL.?
MR. AcCUNA. =e s!o'&d not e&i,inate t!e p!rase ?contro&&in% interest.?
MR. 6ENGcON. In t!e case o$ stoc: corporations, it is ass',ed.42krl&& 76o&d$acin% and 'nderscorin%
s'pp&ied8
T!'s, ;2 percent o$ t!e ?capita&? ass',es, or s!o'&d res'&t in, a ?contro&&in% interest? in t!e corporation.
T!e 'se o$ t!e ter, ?capita&? "as intended to rep&ace t!e "ord ?stoc:? .eca'se associations "it!o't
stoc:s can operate p'.&ic 'ti&ities as &on% as t!e# ,eet t!e ;2142 o"ners!ip re<'ire,ent in $avor o$
Fi&ipino citiJens prescri.ed in Section )), Artic&e HII o$ t!e Constit'tion. Ho"ever, t!is did not c!an%e t!e
intent o$ t!e $ra,ers o$ t!e Constit'tion to reserve e9c&'sive&# to P!i&ippine nationa&s t!e ?contro&&in%
interest? in p'.&ic 'ti&ities.
@'rin% t!e dra$tin% o$ t!e )*(0 Constit'tion, econo,ic protectionis, "as ?t!e .att&e1cr# o$ t!e nationa&ists
in t!e Convention.?4)krl&& T!e sa,e .att&e1cr# res'&ted in t!e nationa&iJation o$ t!e p'.&ic 'ti&ities.43krl&&
T!is is a&so t!e sa,e intent o$ t!e $ra,ers o$ t!e )*+- Constit'tion "!o adopted t!e e9act $or,'&ation
e,.odied in t!e )*(0 and )*-( Constit'tions on $orei%n e<'it# &i,itations in partia&&# nationa&iJed
ind'stries.
T!e OSG, in its o"n .e!a&$ and as co'nse& $or t!e State,4(krl&& a%rees $'&&# "it! t!e Co'rts interpretation
o$ t!e ter, ?capita&.? In its Conso&idated Co,,ent, t!e OSG e9p&ains t!at t!e de&etion o$ t!e p!rase
?contro&&in% interest? and rep&ace,ent o$ t!e "ord ?stoc:? "it! t!e ter, ?capita&? "ere intended speci$ica&&#
to e9tend t!e scope o$ t!e entities <'a&i$ied to operate p'.&ic 'ti&ities to inc&'de associations "it!o't
stoc:s. T!e $ra,ers o,ission o$ t!e p!rase ?contro&&in% interest? did not ,ean t!e inc&'sion o$ a&& s!ares o$
stoc:, "!et!er votin% or non1votin%. T!e OSG reiterated essentia&&# t!e Co'rts dec&aration t!at t!e
Constit'tion reserved e9c&'sive&# to P!i&ippine nationa&s t!e o"ners!ip and operation o$ p'.&ic 'ti&ities
consistent "it! t!e States po&ic# to ?deve&op a se&$1re&iant and independent nationa& econo,# e$$ective&#
contro&&ed .# Fi&ipinos.?
As "e !e&d in o'r 3+ C'ne 32)) @ecision, to constr'e .road&# t!e ter, ?capita&? as t!e tota& o'tstandin%
capita& stoc:, treated as a sin%&e c&ass re%ard&ess o$ t!e act'a& c&assi$ication o$ s!ares, %ross&#
contravenes t!e intent and &etter o$ t!e Constit'tion t!at t!e ?State s!a&& deve&op a se&$1re&iant and
independent nationa& econo,# e$$ective&# contro&&ed .# Fi&ipinos.? =e i&&'strated t!e %&arin% ano,a&#
"!ic! "o'&d res'&t in de$inin% t!e ter, ?capita&? as t!e tota& o'tstandin% capita& stoc: o$ a corporation,
treated as a sin%&e c&ass o$ s!ares re%ard&ess o$ t!e act'a& c&assi$ication o$ s!ares, to "it
Let 's ass',e t!at a corporation !as )22 co,,on s!ares o"ned .# $orei%ners and ),222,222 non1votin%
pre$erred s!ares o"ned .# Fi&ipinos, "it! .ot! c&asses o$ s!are !avin% a par va&'e o$ one peso 7P ).228
per s!are. Under t!e .road de$inition o$ t!e ter, ?capita&,? s'c! corporation "o'&d .e considered
co,p&iant "it! t!e 42 percent constit'tiona& &i,it on $orei%n e<'it# o$ p'.&ic 'ti&ities since t!e over"!e&,in%
,a5orit#, or ,ore t!an **.*** percent, o$ t!e tota& o'tstandin% capita& stoc: is Fi&ipino o"ned. T!is is
o.vio's&# a.s'rd.
In t!e e9a,p&e %iven, on&# t!e $orei%ners !o&din% t!e co,,on s!ares !ave votin% ri%!ts in t!e e&ection o$
directors, even i$ t!e# !o&d on&# )22 s!ares. T!e $orei%ners, "it! a ,in'sc'&e e<'it# o$ &ess t!an 2.22)
percent, e9ercise contro& over t!e p'.&ic 'ti&it#. On t!e ot!er !and, t!e Fi&ipinos, !o&din% ,ore t!an **.***
percent o$ t!e e<'it#, cannot vote in t!e e&ection o$ directors and !ence, !ave no contro& over t!e p'.&ic
'ti&it#. T!is star:&# circ',vents t!e intent o$ t!e $ra,ers o$ t!e Constit'tion, as "e&& as t!e c&ear &an%'a%e
o$ t!e Constit'tion, to p&ace t!e contro& o$ p'.&ic 'ti&ities in t!e !ands o$ Fi&ipinos. 9 9 9
F'rt!er, even i$ $orei%ners "!o o"n ,ore t!an $ort# percent o$ t!e votin% s!ares e&ect an a&&1Fi&ipino .oard
o$ directors, t!is sit'ation does not %'arantee Fi&ipino contro& and does not in an# "a# c're t!e vio&ation o$
t!e Constit'tion. T!e independence o$ t!e Fi&ipino .oard ,e,.ers so e&ected .# s'c! $orei%n
s!are!o&ders is !i%!&# do'.t$'&. As t!e OSG pointed o't, <'otin% C'stice Geor%e S't!er&ands "ords in
H',p!re#s E9ec'tor v. US,44krl&& ?9 9 9 it is <'ite evident t!at one "!o !o&ds !is o$$ice on&# d'rin% t!e
p&eas're o$ anot!er cannot .e depended 'pon to ,aintain an attit'de o$ independence a%ainst t!e &atters
"i&&.? A&&o"in% $orei%n s!are!o&ders to e&ect a contro&&in% ,a5orit# o$ t!e .oard, even i$ a&& t!e directors are
Fi&ipinos, %ross&# circ',vents t!e &etter and intent o$ t!e Constit'tion and de$eats t!e ver# p'rpose o$ o'r
nationa&iJation &a"s.
III.
Last sentence o$ Section )), Artic&e HII o$ t!e Constit'tion
T!e &ast sentence o$ Section )), Artic&e HII o$ t!e )*+- Constit'tion reads
T!e participation o$ $orei%n investors in t!e %overnin% .od# o$ an# p'.&ic 'ti&it# enterprise s!a&& .e &i,ited
to t!eir proportionate s!are in its capita&, and a&& t!e e9ec'tive and ,ana%in% o$$icers o$ s'c! corporation
or association ,'st .e citiJens o$ t!e P!i&ippines.
@'rin% t!e Ora& Ar%',ents, t!e OSG e,p!asiJed t!at t!ere "as never a <'estion on t!e intent o$ t!e
$ra,ers o$ t!e Constit'tion to &i,it $orei%n o"ners!ip, and ass're ,a5orit# Fi&ipino o"ners!ip and contro& o$
p'.&ic 'ti&ities. T!e OSG ar%'ed, ?"!i&e t!e de&e%ates disa%reed as to t!e percenta%e t!res!o&d to adopt, 9
9 9 t!e records s!o" t!e# c&ear&# 'nderstood t!at Fi&ipino contro& o$ t!e p'.&ic 'ti&it# corporation can on&#
.e and is o.tained on&# t!ro'%! t!e e&ection o$ a ,a5orit# o$ t!e ,e,.ers o$ t!e .oard.?
Indeed, t!e on&# point o$ contention d'rin% t!e de&i.erations o$ t!e Constit'tiona& Co,,ission on 3(
A'%'st )*+; "as t!e e9tent o$ ,a5orit# Fi&ipino contro& o$ p'.&ic 'ti&ities. T!is is evident $ro, t!e $o&&o"in%
e9c!an%e
THE PRESI@ENT. Co,,issioner Ca,ir is reco%niJed.
MR. CAMIR. Mada, President, ,# proposed a,end,ent on &ines 32 and 3) is to de&ete t!e p!rase ?t"o
t!irds o$ "!ose votin% stoc: or contro&&in% interest,? and instead s'.stit'te t!e "ords ?SIHTB PERCENT
OF =HOSE CAPITAL? so t!at t!e sentence "i&& read ?No $ranc!ise, certi$icate, or an# ot!er $or, o$
a't!oriJation $or t!e operation o$ a p'.&ic 'ti&it# s!a&& .e %ranted e9cept to citiJens o$ t!e P!i&ippines or to
corporations or associations or%aniJed 'nder t!e &a"s o$ t!e P!i&ippines at &east SIHTB PERCENT OF
=HOSE CAPITAL is o"ned .# s'c! citiJens.?
9 9 9 9
THE PRESI@ENT =i&& Co,,issioner Ca,ir $irst e9p&ainR
MR. CAMIR. Bes, in t!is Artic&e on Nationa& Econo,# and Patri,on#, t!ere "ere t"o previo's sections in
"!ic! "e $i9ed t!e Fi&ipino e<'it# to ;2 percent as a%ainst 42 percent $or $orei%ners. It is on&# in t!is
Section )0 "it! respect to p'.&ic 'ti&ities t!at t!e co,,ittee proposa& "as increased to t"o1t!irds. I t!in: it
"o'&d .e .etter to !ar,oniJe t!is provision .# providin% t!at even in t!e case o$ p'.&ic 'ti&ities, t!e
,ini,', e<'it# $or Fi&ipino citiJens s!o'&d .e ;2 percent.
MR. ROMULO. Mada, President.
THE PRESI@ENT. Co,,issioner Ro,'&o is reco%niJed.
MR. ROMULO. M# reason $or s'pportin% t!e a,end,ent is .ased on t!e disc'ssions I !ave !ad "it!
representatives o$ t!e Fi&ipino ,a5orit# o"ners o$ t!e internationa& record carriers, and t!e s'.se<'ent
,e,oranda t!e# s'.,itted to ,e. 9 9 9
T!eir second point is t!at 'nder t!e Corporation Code, t!e ,ana%e,ent and contro& o$ a corporation is
vested in t!e .oard o$ directors, not in t!e o$$icers .'t in t!e .oard o$ directors. T!e o$$icers are on&#
a%ents o$ t!e .oard. And t!e# .e&ieve t!at "it! ;2 percent o$ t!e e<'it#, t!e Fi&ipino ,a5orit# stoc:!o&ders
'ndenia.&# contro& t!e .oard. On&# on i,portant corporate acts can t!e 421percent $orei%n e<'it# e9ercise
a veto, 9 9 9.
9 9 9 940krl&&
MS. ROSARIO 6RAI@. Mada, President.
THE PRESI@ENT. Co,,issioner Rosario 6raid is reco%niJed.
MS. ROSARIO 6RAI@. Bes, in t!e interest o$ e<'a& ti,e, ,a# I a&so read $ro, a ,e,orand', .# t!e
spo:es,an o$ t!e P!i&ippine C!a,.er o$ Co,,'nications on "!# t!e# "o'&d &i:e to ,aintain t!e present
e<'it#, I a, re$errin% to t!e ;; 3O(. T!e# "o'&d pre$er to !ave a -0130 ratio .'t "o'&d sett&e $or ;; 3O(. 9 9
9
9 9 9 9
THE PRESI@ENT. C'st to c&ari$#, "o'&d Co,,issioner Rosario 6raid s'pport t!e proposa& o$ t"o1t!irds
rat!er t!an t!e ;2 percentR
MS. ROSARIO 6RAI@. I !ave added a c&a'se t!at "i&& p't ,ana%e,ent in t!e !ands o$ Fi&ipino citiJens.
9 9 9 94;krl&&
=!i&e t!e# !ad di$$erin% vie"s on t!e percenta%e o$ Fi&ipino o"ners!ip o$ capita&, it is c&ear t!at t!e
$ra,ers o$ t!e Constit'tion intended p'.&ic 'ti&ities to .e ,a5orit# Fi&ipino1o"ned and contro&&ed. To ens're
t!at Fi&ipinos contro& p'.&ic 'ti&ities, t!e $ra,ers o$ t!e Constit'tion approved, as additiona& sa$e%'ard, t!e
inc&'sion o$ t!e &ast sentence o$ Section )), Artic&e HII o$ t!e Constit'tion co,,andin% t!at ?EtF!e
participation o$ $orei%n investors in t!e %overnin% .od# o$ an# p'.&ic 'ti&it# enterprise s!a&& .e &i,ited to
t!eir proportionate s!are in its capita&, and a&& t!e e9ec'tive and ,ana%in% o$$icers o$ s'c! corporation or
association ,'st .e citiJens o$ t!e P!i&ippines.? In ot!er "ords, t!e &ast sentence o$ Section )), Artic&e HII
o$ t!e Constit'tion ,andates t!at 7)8 t!e participation o$ $orei%n investors in t!e %overnin% .od# o$ t!e
corporation or association s!a&& .e &i,ited to t!eir proportionate s!are in t!e capita& o$ s'c! entit#D and 738
a&& o$$icers o$ t!e corporation or association ,'st .e Fi&ipino citiJens.
Co,,issioner Rosario 6raid proposed t!e inc&'sion o$ t!e p!rase re<'irin% t!e ,ana%in% o$$icers o$ t!e
corporation or association to .e Fi&ipino citiJens speci$ica&&# to prevent ,ana%e,ent contracts, "!ic! "ere
desi%ned pri,ari&# to circ',vent t!e Fi&ipiniJation o$ p'.&ic 'ti&ities, and to ass're Fi&ipino contro& o$ p'.&ic
'ti&ities, t!'s
MS. ROSARIO 6RAI@. 9 9 9 T!e# a&so &i:e to s'%%est t!at "e a,end t!is provision .# addin% a p!rase
"!ic! states ?THE MANAGEMENT 6O@B OF EIERB CORPORATION OR ASSOCIATION SHALL IN
ALL CASES 6E CONTROLLE@ 6B CITIcENS OF THE PHILIPPINES.? I !ave "it! ,e t!eir position
paper.
THE PRESI@ENT. T!e Co,,issioner ,a# proceed.
MS. ROSARIO 6RAI@. T!e t!ree ,a5or internationa& record carriers in t!e P!i&ippines, "!ic!
Co,,issioner Ro,'&o ,entioned P!i&ippine G&o.a& Co,,'nications, Eastern Te&eco,,'nications,
G&o.e Mac:a# Ca.&e are 421percent o"ned .# $orei%n ,'&tinationa& co,panies and ;21percent o"ned .#
t!eir respective Fi&ipino partners. A&& t!ree, !o"ever, a&so !ave ,ana%e,ent contracts "it! t!ese $orei%n
co,panies P!i&co, "it! RCA, ETPI "it! Ca.&e and =ire&ess PLC, and GMCR "it! ITT. Up to t!e present
ti,e, t!e %enera& ,ana%ers o$ t!ese carriers are $orei%ners. =!i&e t!e $orei%ners in t!ese co,,on
carriers are on&# ,inorit# o"ners, t!e $orei%n ,'&tinationa&s are t!e ones ,ana%in% and contro&&in% t!eir
operations .# virt'e o$ t!eir ,ana%e,ent contracts and .# virt'e o$ t!eir stren%t! in t!e %overnin% .odies
o$ t!ese carriers.4-krl&&
9 9 9 9
MR. OPLE. I t!in: a n',.er o$ 's !ave a%reed to as: Co,,issioner Rosario 6raid to propose an
a,end,ent "it! respect to t!e operatin% ,ana%e,ent o$ p'.&ic 'ti&ities, and in t!is a,end,ent, "e are
associated "it! Fr. 6ernas, Co,,issioners Nieva and Rodri%o. Co,,issioner Rosario 6raid "i&& state t!is
a,end,ent no".
T!an: #o'.
MS. ROSARIO 6RAI@. Mada, President.
THE PRESI@ENT. T!is is sti&& on Section )0.
MS. ROSARIO 6RAI@. Bes.
MR. IILLEGAS. Bes, Mada, President.
9 9 9 9
MS. ROSARIO 6RAI@. Mada, President, I propose a ne" section to read THE MANAGEMENT 6O@B
OF EIERB CORPORATION OR ASSOCIATION SHALL IN ALL CASES 6E CONTROLLE@ 6B
CITIcENS OF THE PHILIPPINES.?
T!is "i&& prevent ,ana%e,ent contracts and ass're contro& .# Fi&ipino citiJens. =i&& t!e co,,ittee ass're
's t!at t!is a,end,ent "i&& ins're t!at past activities s'c! as ,ana%e,ent contracts "i&& no &on%er .e
possi.&e 'nder t!is a,end,entR
9 9 9 9
FR. 6ERNAS. Mada, President.
THE PRESI@ENT. Co,,issioner 6ernas is reco%niJed.
FR. 6ERNAS. =i&& t!e co,,ittee accept a re$or,'&ation o$ t!e $irst partR
MR. 6ENGcON. Let 's !ear it.
FR. 6ERNAS. T!e re$or,'&ation "i&& .e essentia&&# t!e $or,'&a o$ t!e )*-( Constit'tion "!ic! reads
?THE PARTICIPATION OF FOREIGN INIESTORS IN THE GOIERNING 6O@B OF ANB PU6LIC
UTILITB ENTERPRISE SHALL 6E LIMITE@ TO THEIR PROPORTIONATE SHARE IN THE CAPITAL
THEREOF AN@...?
MR. IILLEGAS. ?ALL THE EHECUTIIE AN@ MANAGING OFFICERS OF SUCH CORPORATIONS AN@
ASSOCIATIONS MUST 6E CITIcENS OF THE PHILIPPINES.?
MR. 6ENGcON. =i&& Co,,issioner 6ernas read t!e "!o&e t!in% a%ainR
FR. 6ERNAS. ?THE PARTICIPATION OF FOREIGN INIESTORS IN THE GOIERNING 6O@B OF ANB
PU6LIC UTILITB ENTERPRISE SHALL 6E LIMITE@ TO THEIR PROPORTIONATE SHARE IN THE
CAPITAL THEREOF...? I do not !ave t!e rest o$ t!e cop#.
MR. 6ENGcON. ?AN@ ALL THE EHECUTIIE AN@ MANAGING OFFICERS OF SUCH CORPORATIONS
OR ASSOCIATIONS MUST 6E CITIcENS OF THE PHILIPPINES.? Is t!at correctR
MR. IILLEGAS. Bes.
MR. 6ENGcON. Mada, President, I t!in: t!at "as said in a ,ore e&e%ant &an%'a%e. =e accept t!e
a,end,ent. Is t!at a&& ri%!t "it! Co,,issioner Rosario 6raidR
MS. ROSARIO 6RAI@. Bes.
9 9 9 9
MR. @E LOS REBES. T!e %overnin% .od# re$ers to t!e .oard o$ directors and tr'stees.
MR. IILLEGAS. T!at is ri%!t.
MR. 6ENGcON. Bes, t!e %overnin% .od# re$ers to t!e .oard o$ directors.
MR. REGALA@O. It is accepted.
MR. RAMA. T!e .od# is no" read# to vote, Mada, President.
IOTING
9 9 9 9
T!e res'&ts s!o" 3* votes in $avor and none a%ainstD so t!e proposed a,end,ent is approved.
9 9 9 9
THE PRESI@ENT. A&& ri%!t. Can "e proceed no" to vote on Section )0R
MR. RAMA. Bes, Mada, President.
THE PRESI@ENT. =i&& t!e c!air,an o$ t!e co,,ittee p&ease read Section )0R
MR. IILLEGAS. T!e entire Section )0, as a,ended, reads ?No $ranc!ise, certi$icate, or an# ot!er $or, o$
a't!oriJation $or t!e operation o$ a p'.&ic 'ti&it# s!a&& .e %ranted e9cept to citiJens o$ t!e P!i&ippines or to
corporations or associations or%aniJed 'nder t!e &a"s o$ t!e P!i&ippines at &east ;2 PERCENT OF
=HOSE CAPITAL is o"ned .# s'c! citiJens.? Ma# I re<'est Co,,issioner 6en%Jon to p&ease contin'e
readin%.
MR. 6ENGcON. ?THE PARTICIPATION OF FOREIGN INIESTORS IN THE GOIERNING 6O@B OF
ANB PU6LIC UTILITB ENTERPRISE SHALL 6E LIMITE@ TO THEIR PROPORTIONATE SHARE IN
THE CAPITAL THEREOF AN@ ALL THE EHECUTIIE AN@ MANAGING OFFICERS OF SUCH
CORPORATIONS OR ASSOCIATIONS MUST 6E CITIcENS OF THE PHILIPPINES.?
MR. IILLEGAS. ?NOR SHALL SUCH FRANCHISE, CERTIFICATE OR AUTHORIcATION 6E
EHCLUSIIE IN CHARACTER OR FOR A PERIO@ LONGER THAN T=ENTB1FIIE BEARS
RENE=A6LE FOR NOT MORE THAN T=ENTB1FIIE BEARS. Neit!er s!a&& an# s'c! $ranc!ise or ri%!t
.e %ranted e9cept 'nder t!e condition t!at it s!a&& .e s'.5ect to a,end,ent, a&teration, or repea& .#
Con%ress "!en t!e co,,on %ood so re<'ires. T!e State s!a&& enco'ra%e e<'it# participation in p'.&ic
'ti&ities .# t!e %enera& p'.&ic.?
IOTING
9 9 9 9
T!e res'&ts s!o" 3* votes in $avor and 4 a%ainstD Section )0, as a,ended, is approved.4+krl&& 7E,p!asis
s'pp&ied8
T!e &ast sentence o$ Section )), Artic&e HII o$ t!e )*+- Constit'tion, partic'&ar&# t!e provision on t!e
&i,ited participation o$ $orei%n investors in t!e %overnin% .od# o$ p'.&ic 'ti&ities, is a reiteration o$ t!e &ast
sentence o$ Section 0, Artic&e HII o$ t!e )*-( Constit'tion,4*krl&& si%ni$#in% its i,portance in reservin%
o"ners!ip and contro& o$ p'.&ic 'ti&ities to Fi&ipino citiJens.
IIII.
T!e 'ndisp'ted $acts
T!ere is no disp'te, and respondents do not c&ai, t!e contrar#, t!at 7)8 $orei%ners o"n ;4.3-P o$ t!e
co,,on s!ares o$ PL@T, "!ic! c&ass o$ s!ares e9ercises t!e so&e ri%!t to vote in t!e e&ection o$ directors,
and t!'s $orei%ners contro& PL@TD 738 Fi&ipinos o"n on&# (0.-(P o$ PL@Ts co,,on s!ares, constit'tin% a
,inorit# o$ t!e votin% stoc:, and t!'s Fi&ipinos do not contro& PL@TD 7(8 pre$erred s!ares, **.44P o"ned
.# Fi&ipinos, !ave no votin% ri%!tsD 748 pre$erred s!ares earn on&# )O-2 o$ t!e dividends t!at co,,on
s!ares earnD02krl&& 708 pre$erred s!ares !ave t"ice t!e par va&'e o$ co,,on s!aresD and 7;8 pre$erred
s!ares constit'te --.+0P o$ t!e a't!oriJed capita& stoc: o$ PL@T and co,,on s!ares on&# 33.)0P.
@espite t!e $ore%oin% $acts, t!e Co'rt did not decide, and in $act re$rained $ro, r'&in% on t!e <'estion o$
"!et!er PL@T vio&ated t!e ;2142 o"ners!ip re<'ire,ent in $avor o$ Fi&ipino citiJens in Section )), Artic&e
HII o$ t!e )*+- Constit'tion. S'c! <'estion indisp'ta.&# ca&&s $or a presentation and deter,ination o$
evidence t!ro'%! a !earin%, "!ic! is %enera&&# o'tside t!e province o$ t!e Co'rts 5'risdiction, .'t "e&&
"it!in t!e SECs stat'tor# po"ers. T!'s, $or o.vio's reasons, t!e Co'rt &i,ited its decision on t!e p're&#
&e%a& and t!res!o&d iss'e on t!e de$inition o$ t!e ter, ?capita&? in Section )), Artic&e HII o$ t!e Constit'tion
and directed t!e SEC to app&# s'c! de$inition in deter,inin% t!e e9act percenta%e o$ $orei%n o"ners!ip in
PL@T.
IH.
PL@T is not an indispensa.&e part#D
SEC is i,p&eaded in t!is case.
In !is petition, Ga,.oa pra#s, a,on% ot!ersc!anro.&esvirt'a&&a"&i.rar#
9 9 9 9
0. For t!e Honora.&e Co'rt to iss'e a dec&arator# re&ie$ t!at o"ners!ip o$ co,,on or votin% s!ares is t!e
so&e .asis in deter,inin% $orei%n e<'it# in a p'.&ic 'ti&it# and t!at an# ot!er %overn,ent r'&in%s, opinions,
and re%'&ations inconsistent "it! t!is dec&arator# re&ie$ .e dec&ared 'nconstit'tiona& and a vio&ation o$ t!e
intent and spirit o$ t!e )*+- Constit'tionD
;. For t!e Honora.&e Co'rt to dec&are n'&& and void a&& sa&es o$ co,,on stoc:s to $orei%ners in e9cess o$
42 percent o$ t!e tota& s'.scri.ed co,,on s!are!o&din%sD and
-. For t!e Honora.&e Co'rt to direct t!e Sec'rities and E9c!an%e Co,,ission and P!i&ippine Stoc:
E9c!an%e to re<'ire PL@T to ,a:e a p'.&ic disc&os're o$ a&& o$ its $orei%n s!are!o&din%s and t!eir act'a&
and rea& .ene$icia& o"ners.
Ot!er re&ie$7s8 5'st and e<'ita.&e are &i:e"ise pra#ed $or. 7E,p!asis s'pp&ied8
As can .e %&eaned $ro, !is pra#er, Ga,.oa c&ear&# as:s t!is Co'rt to co,pe& t!e SEC to per$or, its
stat'tor# d't# to investi%ate "!et!er ?t!e re<'ired percenta%e o$ o"ners!ip o$ t!e capita& stoc: to .e
o"ned .# citiJens o$ t!e P!i&ippines !as .een co,p&ied "it! E.# PL@TF as re<'ired .# 9 9 9 t!e
Constit'tion.?0)krl&& S'c! p&ea c&ear&# ne%ates SECs ar%',ent t!at it "as not i,p&eaded.
Grantin% t!at on&# t!e SEC C!air,an "as i,p&eaded in t!is case, t!e Co'rt !as a,p&e po"ers to order
t!e SECs co,p&iance "it! its directive contained in t!e 3+ C'ne 32)) @ecision in vie" o$ t!e $ar1reac!in%
i,p&ications o$ t!is case. In @o,in%o v. Sc!eer,03krl&& t!e Co'rt dispensed "it! t!e a,end,ent o$ t!e
p&eadin%s to i,p&ead t!e 6'rea' o$ C'sto,s considerin% 7)8 t!e 'ni<'e .ac:drop o$ t!e caseD 738 t!e
't,ost need to avoid $'rt!er de&a#sD and 7(8 t!e iss'e o$ p'.&ic interest invo&ved. T!e Co'rt !e&d
T!e Co'rt ,a# .e c'rin% t!e de$ect in t!is case .# addin% t!e 6OC as part#1petitioner. T!e petition s!o'&d
not .e dis,issed .eca'se t!e second action "o'&d on&# .e a repetition o$ t!e $irst. In Sa&vador, et a&., v.
Co'rt o$ Appea&s, et a&., "e !e&d t!at t!is Co'rt !as $'&& po"ers, apart $ro, t!at po"er and a't!orit# "!ic!
is in!erent, to a,end t!e processes, p&eadin%s, proceedin%s and decisions .# s'.stit'tin% as part#1
p&ainti$$ t!e rea& part#1in1interest. T!e Co'rt !as t!e po"er to avoid de&a# in t!e disposition o$ t!is case, to
order its a,end,ent as to i,p&ead t!e 6OC as part#1respondent. Indeed, it ,a# no &on%er .e necessar#
to do so ta:in% into acco'nt t!e 'ni<'e .ac:drop in t!is case, invo&vin% as it does an iss'e o$ p'.&ic
interest. A$ter a&&, t!e O$$ice o$ t!e So&icitor Genera& !as represented t!e petitioner in t!e instant
proceedin%s, as "e&& as in t!e appe&&ate co'rt, and ,aintained t!e va&idit# o$ t!e deportation order and o$
t!e 6OCs O,ni.'s Reso&'tion. It cannot, t!'s, .e c&ai,ed .# t!e State t!at t!e 6OC "as not a$$orded its
da# in co'rt, si,p&# .eca'se on&# t!e petitioner, t!e C!airperson o$ t!e 6OC, "as t!e respondent in t!e
CA, and t!e petitioner in t!e instant reco'rse. In A&onso v. Ii&&a,or, "e !ad t!e occasion to state
T!ere is not!in% sacred a.o't processes or p&eadin%s, t!eir $or,s or contents. T!eir so&e p'rpose is to
$aci&itate t!e app&ication o$ 5'stice to t!e riva& c&ai,s o$ contendin% parties. T!e# "ere created, not to
!inder and de&a#, .'t to $aci&itate and pro,ote, t!e ad,inistration o$ 5'stice. T!e# do not constit'te t!e
t!in% itse&$, "!ic! co'rts are a&"a#s strivin% to sec're to &iti%ants. T!e# are desi%ned as t!e ,eans .est
adapted to o.tain t!at t!in%. In ot!er "ords, t!e# are a ,eans to an end. =!en t!e# &ose t!e c!aracter o$
t!e one and .eco,e t!e ot!er, t!e ad,inistration o$ 5'stice is at $a'&t and co'rts are correspondin%&#
re,iss in t!e per$or,ance o$ t!eir o.vio's d't#.0(krl&& 7E,p!asis s'pp&ied8
In an# event, t!e SEC !as e9press&# ,ani$ested04krl&&t!at it "i&& a.ide .# t!e Co'rts decision and de$er to
t!e Co'rts de$inition o$ t!e ter, ?capita&? in Section )), Artic&e HII o$ t!e Constit'tion. F'rt!er, t!e SEC
entered its specia& appearance in t!is case and ar%'ed d'rin% t!e Ora& Ar%',ents, indicatin% its
s'.,ission to t!e Co'rts 5'risdiction. It is c&ear, t!ere$ore, t!at t!ere e9ists no &e%a& i,pedi,ent a%ainst
t!e proper and i,,ediate i,p&e,entation o$ t!e Co'rts directive to t!e SEC.
PL@T is an indispensa.&e part# on&# inso$ar as t!e ot!er iss'es, partic'&ar&# t!e $act'a& <'estions, are
concerned. In ot!er "ords, PL@T ,'st .e i,p&eaded in order to $'&&# reso&ve t!e iss'es on 7)8 "!et!er t!e
sa&e o$ ))),4)0 PTIC s!ares to First Paci$ic vio&ates t!e constit'tiona& &i,it on $orei%n o"ners!ip o$ PL@TD
738 "!et!er t!e sa&e o$ co,,on s!ares to $orei%ners e9ceeded t!e 42 percent &i,it on $orei%n e<'it# in
PL@TD and 7(8 "!et!er t!e tota& percenta%e o$ t!e PL@T co,,on s!ares "it! votin% ri%!ts co,p&ies "it!
t!e ;2142 o"ners!ip re<'ire,ent in $avor o$ Fi&ipino citiJens 'nder t!e Constit'tion $or t!e o"ners!ip and
operation o$ PL@T. T!ese iss'es indisp'ta.&# ca&& $or an e9a,ination o$ t!e parties respective evidence,
and t!'s are c&ear&# "it!in t!e 5'risdiction o$ t!e SEC. In s!ort, PL@T ,'st .e i,p&eaded, and ,'st
necessari&# .e !eard, in t!e proceedin%s .e$ore t!e SEC "!ere t!e $act'a& iss'es "i&& .e t!oro'%!&#
t!res!ed o't and reso&ved.
Nota.&#, t!e $ore%oin% iss'es "ere &e$t 'nto'c!ed .# t!e Co'rt. T!e Co'rt did not r'&e on t!e $act'a&
iss'es raised .# Ga,.oa, e9cept t!e sin%&e and p're&# &e%a& iss'e on t!e de$inition o$ t!e ter, ?capita&? in
Section )), Artic&e HII o$ t!e Constit'tion. T!e Co'rt con$ined t!e reso&'tion o$ t!e instant case to t!is
t!res!o&d &e%a& iss'e in de$erence to t!e $act1$indin% po"er o$ t!e SEC.
Need&ess to state, t!e Co'rt can va&id&#, proper&#, and $'&&# dispose o$ t!e $'nda,enta& &e%a& iss'e in t!is
case even "it!o't t!e participation o$ PL@T since de$inin% t!e ter, ?capita&? in Section )), Artic&e HII o$
t!e Constit'tion does not, in an# "a#, depend on "!et!er PL@T "as i,p&eaded. Si,p&# p't, PL@T is not
indispensa.&e $or a co,p&ete reso&'tion o$ t!e p're&# &e%a& <'estion in t!is case.00krl&& In $act, t!e Co'rt,
.# treatin% t!e petition as one $or ,anda,'s,0;krl&& ,ere&# directed t!e SEC to app&# t!e Co'rts de$inition
o$ t!e ter, ?capita&? in Section )), Artic&e HII o$ t!e Constit'tion in deter,inin% "!et!er PL@T co,,itted
an# vio&ation o$ t!e said constit'tiona& provision. T!e dispositive portion o$ t!e Co'rts r'&in% is addressed
not to PL@T .'t so&e&# to t!e SEC, "!ic! is t!e ad,inistrative a%enc# tas:ed to en$orce t!e ;2142
o"ners!ip re<'ire,ent in $avor o$ Fi&ipino citiJens in Section )), Artic&e HII o$ t!e Constit'tion.
Since t!e Co'rt &i,ited its reso&'tion on t!e p're&# &e%a& iss'e on t!e de$inition o$ t!e ter, ?capita&? in
Section )), Artic&e HII o$ t!e )*+- Constit'tion, and directed t!e SEC to investi%ate an# vio&ation .# PL@T
o$ t!e ;2142 o"ners!ip re<'ire,ent in $avor o$ Fi&ipino citiJens 'nder t!e Constit'tion,0-krl&& t!ere is no
deprivation o$ PL@Ts propert# or denia& o$ PL@Ts ri%!t to d'e process, contrar# to Pan%i&inan and
NaJarenos ,isi,pression. @'e process "i&& .e a$$orded to PL@T "!en it presents proo$ to t!e SEC t!at it
co,p&ies, as it c&ai,s !ere, "it! Section )), Artic&e HII o$ t!e Constit'tion.
H.
Forei%n Invest,ents in t!e P!i&ippines
Movants $ear t!at t!e 3+ C'ne 32)) @ecision "o'&d spe&& disaster to o'r econo,#, as it ,a# res'&t in a
s'dden $&i%!t o$ e9istin% $orei%n investors to ?$riend&ier? co'ntries and si,'&taneo's&# deterrin% ne" $orei%n
investors to o'r co'ntr#. In partic'&ar, t!e PSE c&ai,s t!at t!e 3+ C'ne 32)) @ecision ,a# res'&t in t!e
$o&&o"in% 7)8 &oss o$ ,ore t!an P ;(2 .i&&ion in $orei%n invest,ents in PSE1&isted s!aresD 738 ,assive
decrease in $orei%n tradin% transactionsD 7(8 &o"er PSE Co,posite Inde9D and 748 &oca& investors not
investin% in PSE1&isted s!ares.0+krl&&
@r. 6ernardo M. Ii&&e%as, one o$ t!e a,ici c'riae in t!e Ora& Ar%',ents, s!ared ,ovants appre!ension.
=it!o't providin% speci$ic detai&s, !e pointed o't t!e depressin% state o$ t!e P!i&ippine econo,#
co,pared to o'r nei%!.orin% co'ntries "!ic! .oast o$ %ro"in% econo,ies. F'rt!er, @r. Ii&&e%as e9p&ained
t!at t!e so&'tion to o'r econo,ic "oes is $or t!e %overn,ent to ?ta:e1over? strate%ic ind'stries, s'c! as
t!e p'.&ic 'ti&ities sector, t!'s
CUSTICE CARPIOc!anro.&esvirt'a&&a"&i.rar#
I "o'&d &i:e a&so to %et $ro, #o' @r. Ii&&e%as i$ #o' !ave additiona& in$or,ation on "!et!er t!is !i%!
F@I0*krl&& co'ntries in East Asia !ave a&&o"ed $orei%ners 9 9 9 contro& Eo$F t!eir p'.&ic 'ti&ities, so t!at "e
can co,pare app&es "it! app&es.
@R. IILLEGASc!anro.&esvirt'a&&a"&i.rar#
Correct, .'t &et ,e 5'st ,a:e a co,,ent. =!en t!ese nei%!.ors o$ o'rs $ind an ind'str# strate%ic, t!eir
so&'tion is not to ?Fi&ipiniJe? or ?Iietna,iJe? or ?Sin%aporiJe.? T!eir so&'tion is to ,a:e s're t!at t!ose
ind'stries are in t!e !ands o$ state enterprises. So, in t!ese co'ntries, nationa&iJation ,eans t!e
%overn,ent ta:es over. And .eca'se t!eir %overn,ents are co,petent and !onest eno'%! to t!e p'.&ic,
t!at is t!e so&'tion. 9 9 9 ;2krl&& 7E,p!asis s'pp&ied8
I$ %overn,ent o"ners!ip o$ p'.&ic 'ti&ities is t!e so&'tion, t!en $orei%n invest,ents in o'r p'.&ic 'ti&ities
serve no p'rpose. O.vio's&#, t!ere can never .e $orei%n invest,ents in p'.&ic 'ti&ities i$, as @r. Ii&&e%as
c&ai,s, t!e ?so&'tion is to ,a:e s're t!at t!ose ind'stries are in t!e !ands o$ state enterprises.? @r.
Ii&&e%ass ar%',ent t!at $orei%n invest,ents in te&eco,,'nication co,panies &i:e PL@T are .ad&# needed
to save o'r ai&in% econo,# contradicts !is o"n t!eor# t!at t!e so&'tion is $or %overn,ent to ta:e over
t!ese co,panies. @r. Ii&&e%as is .ar:in% 'p t!e "ron% tree since State o"ners!ip o$ p'.&ic 'ti&ities and
$orei%n invest,ents in s'c! ind'stries are dia,etrica&&# opposed concepts, "!ic! cannot possi.&# .e
reconci&ed.
In an# event, t!e e9perience o$ o'r nei%!.orin% co'ntries cannot .e 'sed as ar%',ent to decide t!e
present case di$$erent&# $or t"o reasons. First, t!e %overn,ents o$ o'r nei%!.orin% co'ntries !ave, as
c&ai,ed .# @r. Ii&&e%as, ta:en over o"ners!ip and contro& o$ t!eir strate%ic p'.&ic 'ti&ities &i:e t!e
te&eco,,'nications ind'str#. Second, o'r Constit'tion !as speci$ic provisions &i,itin% $orei%n o"ners!ip
in p'.&ic 'ti&ities "!ic! t!e Co'rt is s"orn to 'p!o&d re%ard&ess o$ t!e e9perience o$ o'r nei%!.orin%
co'ntries.
In o'r 5'risdiction, t!e Constit'tion e9press&# reserves t!e o"ners!ip and operation o$ p'.&ic 'ti&ities to
Fi&ipino citiJens, or corporations or associations at &east ;2 percent o$ "!ose capita& .e&on%s to Fi&ipinos.
Fo&&o"in% @r. Ii&&e%ass c&ai,, t!e P!i&ippines appears to .e ,ore &i.era& in a&&o"in% $orei%n investors to
o"n 42 percent o$ p'.&ic 'ti&ities, 'n&i:e in ot!er Asian co'ntries "!ose %overn,ents o"n and operate
s'c! ind'stries.
HI.
Prospective App&ication o$ Sanctions
In its Motion $or Partia& Reconsideration, t!e SEC so'%!t to c&ari$# t!e rec:onin% period o$ t!e app&ication
and i,position o$ appropriate sanctions a%ainst PL@T i$ $o'nd vio&atin% Section )), Artic&e HII o$ t!e
Constit'tion.
As disc'ssed, t!e Co'rt !as directed t!e SEC to investi%ate and deter,ine "!et!er PL@T vio&ated
Section )), Artic&e HII o$ t!e Constit'tion. T!'s, t!ere is no disp'te t!at it is on&# a$ter t!e SEC !as
deter,ined PL@Ts vio&ation, i$ an# e9ists at t!e ti,e o$ t!e co,,ence,ent o$ t!e ad,inistrative case or
investi%ation, t!at t!e SEC ,a# i,pose t!e stat'tor# sanctions a%ainst PL@T. In ot!er "ords, once t!e 3+
C'ne 32)) @ecision .eco,es $ina&, t!e SEC s!a&& i,pose t!e appropriate sanctions on&# i$ it $inds a$ter
d'e !earin% t!at, at t!e start o$ t!e ad,inistrative case or investi%ation, t!ere is an e9istin% vio&ation o$
Section )), Artic&e HII o$ t!e Constit'tion. Under prevai&in% 5'rispr'dence, p'.&ic 'ti&ities t!at $ai& to co,p&#
"it! t!e nationa&it# re<'ire,ent 'nder Section )), Artic&e HII and t!e FIA can c're t!eir de$iciencies prior
to t!e start o$ t!e ad,inistrative case or investi%ation.;)krl&&
HII.
Fina& =ord
T!e Constit'tion e9press&# dec&ares as State po&ic# t!e deve&op,ent o$ an econo,# ?e$$ective&#
contro&&ed? .# Fi&ipinos. Consistent "it! s'c! State po&ic#, t!e Constit'tion e9p&icit&# reserves t!e
o"ners!ip and operation o$ p'.&ic 'ti&ities to P!i&ippine nationa&s, "!o are de$ined in t!e Forei%n
Invest,ents Act o$ )**) as Fi&ipino citiJens, or corporations or associations at &east ;2 percent o$ "!ose
capita& "it! votin% ri%!ts .e&on%s to Fi&ipinos. T!e FIAs i,p&e,entin% r'&es e9p&ain t!at ?E$For stoc:s to .e
dee,ed o"ned and !e&d .# P!i&ippine citiJens or P!i&ippine nationa&s, ,ere &e%a& tit&e is not eno'%! to
,eet t!e re<'ired Fi&ipino e<'it#. F'&& .ene$icia& o"ners!ip o$ t!e stoc:s, co'p&ed "it! appropriate votin%
ri%!ts is essentia&.? In e$$ect, t!e FIA c&ari$ies, reiterates and con$ir,s t!e interpretation t!at t!e ter,
?capita&? in Section )), Artic&e HII o$ t!e )*+- Constit'tion re$ers to s!ares "it! votin% ri%!ts, as "e&& as
"it! $'&& .ene$icia& o"ners!ip. T!is is precise&# .eca'se t!e ri%!t to vote in t!e e&ection o$ directors,
co'p&ed "it! $'&& .ene$icia& o"ners!ip o$ stoc:s, trans&ates to e$$ective contro& o$ a corporation.
An# ot!er constr'ction o$ t!e ter, ?capita&? in Section )), Artic&e HII o$ t!e Constit'tion contravenes t!e
&etter and intent o$ t!e Constit'tion. An# ot!er ,eanin% o$ t!e ter, ?capita&? open&# invites a&ien
do,ination o$ econo,ic activities reserved e9c&'sive&# to P!i&ippine nationa&s. T!ere$ore, respondents
interpretation "i&& '&ti,ate&# res'&t in !andin% over e$$ective contro& o$ o'r nationa& econo,# to $orei%ners in
patent vio&ation o$ t!e Constit'tion, ,a:in% Fi&ipinos second1c&ass citiJens in t!eir o"n co'ntr#.
Fi&ipinos !ave on&# to re,ind t!e,se&ves o$ !o" t!is co'ntr# "as e9p&oited 'nder t!e Parit# A,end,ent,
"!ic! %ave A,ericans t!e sa,e ri%!ts as Fi&ipinos in t!e e9p&oitation o$ nat'ra& reso'rces, and in t!e
o"ners!ip and contro& o$ p'.&ic 'ti&ities, in t!e P!i&ippines. To do t!is t!e )*(0 Constit'tion, "!ic!
contained t!e sa,e ;2 percent Fi&ipino o"ners!ip and contro& re<'ire,ent as t!e present )*+-
Constit'tion, !ad to .e a,ended to %ive A,ericans parit# ri%!ts "it! Fi&ipinos. T!ere "as .itter opposition
to t!e Parit# A,end,ent;3krl&& and ,an# Fi&ipinos ea%er&# a"aited its e9piration. In &ate )*;+, PL@T "as
one o$ t!e A,erican1contro&&ed p'.&ic 'ti&ities t!at .eca,e Fi&ipino1contro&&ed "!en t!e contro&&in%
A,erican stoc:!o&ders divested in anticipation o$ t!e e9piration o$ t!e Parit# A,end,ent on ( C'&#
)*-4.;(krl&& No econo,ic s'icide !appened "!en contro& o$ p'.&ic 'ti&ities and ,inin% corporations
passed to Fi&ipinos !ands 'pon e9piration o$ t!e Parit# A,end,ent.
Movants interpretation o$ t!e ter, ?capita&? "o'&d .rin% 's .ac: to t!e sa,e evi&s spa"ned .# t!e Parit#
A,end,ent, e$$ective&# %ivin% $orei%ners parit# ri%!ts "it! Fi&ipinos, .'t t!is ti,e even "it!o't an#
a,end,ent to t!e present Constit'tion. =orse, ,ovants interpretation opens 'p o'r nationa& econo,# to
e$$ective contro& not on&# .# A,ericans .'t a&so .# a&& $orei%ners, .e t!e# Indonesians, Ma&a#sians or
C!inese, even in t!e a.sence o$ reciproca& treat# arran%e,ents. At &east t!e Parit# A,end,ent, as
i,p&e,ented .# t!e La're&1Lan%&e# A%ree,ent, %ave t!e capita&1starved Fi&ipinos t!eoretica& parit# t!e
sa,e ri%!ts as A,ericans to e9p&oit nat'ra& reso'rces, and to o"n and contro& p'.&ic 'ti&ities, in t!e United
States o$ A,erica. Here, ,ovants interpretation "o'&d e$$ective&# ,ean a 'ni&atera& openin% 'p o$ o'r
nationa& econo,# to a&& $orei%ners, "it!o't an# reciproca& arran%e,ents. T!at "o'&d ,ean t!at
Indonesians, Ma&a#sians and C!inese nationa&s co'&d e$$ective&# contro& o'r ,inin% co,panies and p'.&ic
'ti&ities "!i&e Fi&ipinos, even i$ t!e# !ave t!e capita&, co'&d not contro& si,i&ar corporations in t!ese
co'ntries.
T!e )*(0, )*-( and )*+- Constit'tions !ave t!e sa,e ;2 percent Fi&ipino o"ners!ip and contro&
re<'ire,ent $or p'.&ic 'ti&ities &i:e PLOT. An# deviation $ro, t!is re<'ire,ent necessitates an a,end,ent
to t!e Constit'tion as e9e,p&i$ied .# t!e Parit# A,end,ent. T!is Co'rt !as no po"er to a,end t!e
Constit'tion $or its po"er and d't# is on&# to $ait!$'&&# app&# and interpret t!e Constit'tion.
=HEREFORE, "e @ENB t!e ,otions $or reconsideration =ITH FINALITB. No $'rt!er p&eadin%s s!a&& .e
entertained.krm&mn&o.rmr
SO OR@ERE@.
PROSPERO A. PICHAB, CR., Petitioner, v. OFFICE OF THE @EPUTB EHECUTIIE SECRETARB FOR
LEGAL AFFAIRS INIESTIGATIIE AN@ A@CU@ICATORB @IIISION, HON. PAAUITO N. OCHOA, CR.,
in !is capacit# as E9ec'tive Secretar#, and HON. CESAR I. PURISIMA, in !is capacit# as Secretar# o$
Finance, and as an e91o$$icio ,e,.er o$ t!e Monetar# 6oard, Respondents.
On Apri& );, 322), t!en President G&oria Macapa%a&1Arro#o iss'ed E9ec'tive Order No. )3 7E.O. )38
creatin% t!e Presidentia& Anti1Gra$t Co,,ission 7PAGC8 and vestin% it "it! t!e po"er to investi%ate or
!ear ad,inistrative cases or co,p&aints $or possi.&e %ra$t and corr'ption, a,on% ot!ers, a%ainst
presidentia& appointees and to s'.,it its report and reco,,endations to t!e President. Pertinent portions
o$ E.O. )3 provideSTrUW&UWSb
Section 4. C'risdiction, Po"ers and F'nctions.
7a8 9 9 9 9 9 9 9 9 9
7.8 T!e Co,,ission, actin% as a co&&e%ia& .od#, s!a&& !ave t!e a't!orit# to investi%ate or !ear
ad,inistrative cases or co,p&aints a%ainst a&& presidentia& appointees in t!e %overn,ent and an# o$ its
a%encies or instr',enta&ities 999
9 9 9 9 9 9 9 9 9
9 9 9 9 9 9 9 9 9
Section +. S'.,ission o$ Report and Reco,,endations. A$ter co,p&etin% its investi%ation or !earin%, t!e
Co,,ission en .anc s!a&& s'.,it its report and reco,,endations to t!e President. T!e report and
reco,,endations s!a&& state, a,on% ot!ers, t!e $act'a& $indin%s and &e%a& conc&'sions, as "e&& as t!e
pena&t# reco,,end 7sic8 to .e i,posed or s'c! ot!er action t!at ,a# .e ta:en.?
On Nove,.er )0, 32)2, President 6eni%no Si,eon A<'ino III iss'ed E9ec'tive Order No. )( 7E.O. )(8,
a.o&is!in% t!e PAGC and trans$errin% its $'nctions to t!e O$$ice o$ t!e @ep't# E9ec'tive Secretar# $or
Le%a& A$$airs 7O@ESLA8, ,ore partic'&ar&# to its ne"&#1esta.&is!ed Investi%ative and Ad5'dicator# @ivision
7IA@8. T!e $'&& te9t o$ t!e assai&ed e9ec'tive order readsSTUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
EHECUTIIE OR@ER NO. )(
A6OLISHING THE PRESI@ENTIAL ANTI1GRAFT COMMISSION AN@ TRANSFERRING ITS
INIESTIGATIIE, A@CU@ICATORB AN@ RECOMMEN@ATORB FUNCTIONS TO THE OFFICE OF THE
@EPUTB EHECUTIIE SECRETARB FOR LEGAL AFFAIRS, OFFICE OF THE PRESI@ENT
=HEREAS, t!is ad,inistration !as a contin'in% ,andate and advocac# to $i%!t and eradicate corr'ption
in t!e di$$erent depart,ents, .'rea's, o$$ices and ot!er %overn,ent a%encies and instr',enta&itiesD
=HEREAS, t!e %overn,ent adopted a po&ic# o$ strea,&inin% t!e %overn,ent .'rea'crac# to pro,ote
econo,# and e$$icienc# in %overn,entD
=HEREAS, Section III o$ t!e )*+- P!i&ippine Constit'tion provides t!at t!e President s!a&& !ave contro&
o$ a&& t!e e9ec'tive depart,ents, .'rea's and o$$icesD
=HEREAS, Section () C!apter )2, Tit&e III, 6oo: III o$ E9ec'tive Order 3*3 7Ad,inistrative Code o$
)*+-8 provides $or t!e contin'in% a't!orit# o$ t!e President to reor%aniJe t!e ad,inistrative str'ct're o$
t!e O$$ice o$ t!e PresidentD
=HEREAS, Presidentia& @ecree 7P@8 No. )4); 7Grantin% Contin'in% A't!orit# to t!e President o$ t!e
P!i&ippines to Reor%aniJe t!e Nationa& Govern,ent8, as a,ended .# P@ )-33, provides t!at t!e
President o$ t!e P!i&ippines s!a&& !ave contin'in% a't!orit# to reor%aniJe t!e ad,inistrative str'ct're o$
t!e Nationa& Govern,ent and ,a#, at !is discretion, create, a.o&is!, %ro'p, conso&idate, ,er%e or
inte%rate entities, a%encies, instr',enta&ities and 'nits o$ t!e Nationa& Govern,ent, as "e&& as, e9pand,
a,end, c!an%e or ot!er"ise ,odi$# t!eir po"ers, $'nctions and a't!oritiesD
=HEREAS, Section -+ o$ t!e Genera& Provisions o$ Rep'.&ic Act No. **-2 7Genera& Appropriations Act o$
32)28 a't!oriJes t!e President o$ t!e P!i&ippines to direct c!an%es in t!e or%aniJationa& 'nits or :e#
positions in an# depart,ent or a%enc#D
NO=, THEREFORE, I, 6ENIGNO S. AAUINO III, President o$ t!e P!i&ippines, .# virt'e o$ t!e po"ers
vested in ,e .# &a", do !ere.# order t!e $o&&o"in%STrUW&UWSb
SECTION ). @ec&aration o$ Po&ic#. It is t!e po&ic# o$ t!e %overn,ent to $i%!t and eradicate %ra$t and
corr'ption in t!e di$$erent depart,ents, .'rea's, o$$ices and ot!er %overn,ent a%encies and
instr',enta&ities.
T!e %overn,ent adopted a po&ic# o$ strea,&inin% t!e %overn,ent .'rea'crac# to pro,ote econo,# and
e$$icienc# in t!e %overn,ent.
SECTION 3. A.o&ition o$ Presidentia& Anti1Gra$t Co,,ission 7PAGC8. To ena.&e t!e O$$ice o$ t!e
President 7OP8 to direct&# investi%ate %ra$t and corr'pt cases o$ Presidentia& appointees in t!e E9ec'tive
@epart,ent inc&'din% !eads o$ %overn,ent1o"ned and contro&&ed corporations, t!e
Presidentia& Anti1Gra$t Co,,ission 7PAGC8 is !ere.# a.o&is!ed and t!eir vita& $'nctions and ot!er po"ers
and $'nctions in!erent or incidenta& t!ereto, trans$erred to t!e O$$ice o$ t!e @ep't# E9ec'tive Secretar# $or
Le%a& A$$airs 7O@ESLA8, OP in accordance "it! t!e provisions o$ t!is E9ec'tive Order.
SECTION (. Restr'ct'rin% o$ t!e O$$ice o$ t!e @ep't# E9ec'tive Secretar# $or Le%a& A$$airs, OP. In
addition to t!e Le%a& and Le%is&ative @ivisions o$ t!e O@ESLA, t!e Investi%ative and Ad5'dicator# @ivision
s!a&& .e created.
T!e ne"&# created Investi%ative and Ad5'dicator# @ivision s!a&& per$or, po"ers, $'nctions and d'ties
,entioned in Section 3 !ereo$, o$ PAGC.
T!e @ep't# E9ec'tive Secretar# $or Le%a& A$$airs 7@ESLA8 "i&& .e t!e reco,,endin% a't!orit# to t!e
President, t!r' t!e E9ec'tive Secretar#, $or approva&, adoption or ,odi$ication o$ t!e report and
reco,,endations o$ t!e Investi%ative and Ad5'dicator# @ivision o$ O@ESLA.
SECTION 4. Personne& =!o Ma# 6e A$$ected 6# t!e A.o&ition o$ PAGC. T!e personne& "!o ,a# .e
a$$ected .# t!e a.o&ition o$ t!e PAGC s!a&& .e a&&o"ed to avai& o$ t!e .ene$its provided 'nder e9istin% &a"s
i$ app&ica.&e. T!e @epart,ent o$ 6'd%et and Mana%e,ent 7@6M8 is !ere.# ordered to re&ease t!e
necessar# $'nds $or t!e .ene$its o$ t!e e,p&o#ees.
SECTION 0. =indin% Up o$ t!e Operation and @isposition o$ t!e F'nctions, Positions, Personne&, Assets
and Lia.i&ities o$ PAGC. T!e "indin% 'p o$ t!e operations o$ PAGC inc&'din% t!e $ina& disposition or
trans$er o$ t!eir $'nctions, positions, personne&, assets and &ia.i&ities as ,a# .e necessar#, s!a&& .e in
accordance "it! t!e app&ica.&e provision7s8 o$ t!e R'&es and Re%'&ations I,p&e,entin% EO -3
7Rationa&iJin% t!e A%encies Under or Attac!ed to t!e O$$ice o$ t!e President8 dated Marc! )0, 3223. T!e
"indin% 'p s!a&& .e i,p&e,ented not &ater t!an () @ece,.er 32)2.
T!e O$$ice o$ t!e E9ec'tive Secretar#, "it! t!e assistance o$ t!e @epart,ent o$ 6'd%et and Mana%e,ent,
s!a&& ens're t!e s,oot! and e$$icient i,p&e,entation o$ t!e dispositive actions and "indin%1'p o$ t!e
activities o$ PAGC.
SECTION ;. Repea&in% C&a'se. A&& e9ec'tive orders, r'&es, re%'&ations and ot!er iss'ances or parts
t!ereo$, "!ic! are inconsistent "it! t!e provisions o$ t!is E9ec'tive Order, are !ere.# revo:ed or ,odi$ied
accordin%&#.
SECTION -. E$$ectivit#. T!is E9ec'tive Order s!a&& ta:e e$$ect i,,ediate&# a$ter its p'.&ication in a
ne"spaper o$ %enera& circ'&ation.
c!anro.&es virt'a& &a" &i.rar#
On Apri& ;, 32)), respondent Finance Secretar# Cesar I. P'risi,a $i&ed .e$ore t!e IA@1O@ESLA a
co,p&aint a$$idavit3 $or %rave ,iscond'ct a%ainst petitioner Prospero A. Pic!a#, Cr., C!air,an o$ t!e
6oard o$ Tr'stees o$ t!e Loca& =ater Uti&ities Ad,inistration 7L=UA8, as "e&& as t!e inc',.ent ,e,.ers
o$ t!e L=UA 6oard o$ Tr'stees, na,e&#, Renato Ie&asco, S'sana @',&ao Iar%as, 6oni$acio Mario M.
Pena, Sr. and @anie& Landin%in, "!ic! arose $ro, t!e p'rc!ase .# t!e L=UA o$ Fo'r H'ndred Fort#1Five
T!o'sand T!ree H'ndred Sevent# Seven 7440,(--8 s!ares o$ stoc: o$ E9press Savin%s 6an:, Inc.
On Apri& )4, 32)), petitioner received an Order( si%ned .# E9ec'tive Secretar# Pa<'ito N. Oc!oa, Cr.
re<'irin% !i, and !is co1respondents to s'.,it t!eir respective "ritten e9p&anations 'nder oat!. In
co,p&iance t!ere"it!, petitioner $i&ed a Motion to @is,iss E9 A.'ndante Ad Ca'te&a, ,ani$estin% t!at a
case invo&vin% t!e sa,e transaction and c!ar%e o$ %rave ,iscond'ct entit&ed, ?R'stico 6. T'to&, et a&. v.
Prospero Pic!a#, et a&.?, and doc:eted as OM61C1A1)21243;1I, is a&read# pendin% .e$ore t!e O$$ice o$ t!e
O,.'ds,an.
No" a&&e%in% t!at no ot!er p&ain, speed# and ade<'ate re,ed# is avai&a.&e to !i, in t!e ordinar# co'rse
o$ &a", petitioner !as resorted to t!e instant petition $or certiorari and pro!i.ition 'pon t!e $o&&o"in%
%ro'ndsSTUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
I. E.O. )( IS UNCONSTITUTIONAL FOR USURPING THE PO=ER OF THE LEGISLATURE TO
CREATE A PU6LIC OFFICE.
II. E.O. )( IS UNCONSTITUTIONAL FOR USURPING THE PO=ER OF THE LEGISLATURE TO
APPROPRIATE FUN@S.
III. E.O. )( IS UNCONSTITUTIONAL FOR USURPING THE PO=ER OF CONGRESS TO @ELEGATE
AUASI1CU@ICIAL PO=ERS TO A@MINISTRATIIE AGENCIES.
II. E.O. )( IS UNCONSTITUTIONAL FOR ENCROACHING UPON THE PO=ERS OF THE
OM6U@SMAN.
I. E.O. )( IS UNCONSTITUTIONAL FOR IIOLATING THE GUARANTEE OF @UE PROCESS.
II. E.O. )( IS UNCONSTITUTIONAL FOR IIOLATING THE EAUAL PROTECTION CLAUSE.
c!anro.&es virt'a& &a" &i.rar#
O'r R'&in%
In assai&in% t!e constit'tiona&it# o$ E.O. )(, petitioner asseverates t!at t!e President is not a't!oriJed
'nder an# e9istin% &a" to create t!e Investi%ative and Ad5'dicator# @ivision, O$$ice o$ t!e @ep't#
E9ec'tive Secretar# $or Le%a& A$$airs 7IA@1O@ESLA8 and t!at .# creatin% a ne", additiona& and distinct
o$$ice tas:ed "it! <'asi15'dicia& $'nctions, t!e President !as not on&# 's'rped t!e po"ers o$ con%ress to
create a p'.&ic o$$ice, appropriate $'nds and de&e%ate <'asi15'dicia& $'nctions to ad,inistrative a%encies
.'t !as a&so encroac!ed 'pon t!e po"ers o$ t!e O,.'ds,an. Petitioner avers t!at t!e 'nconstit'tiona&it#
o$ E.O. )( is a&so evident "!en "ei%!ed a%ainst t!e d'e process re<'ire,ent and e<'a& protection c&a'se
'nder t!e )*+- Constit'tion.
T!e contentions are 'navai&in%.
T!e President !as Contin'in% A't!orit# to Reor%aniJe t!e E9ec'tive @epart,ent 'nder E.O. 3*3.
Section () o$ E9ec'tive Order No. 3*3 7E.O. 3*38, ot!er"ise :no"n as t!e Ad,inistrative Code o$ )*+-,
vests in t!e President t!e contin'in% a't!orit# to reor%aniJe t!e o$$ices 'nder !i, in order to ac!ieve
si,p&icit#, econo,# and e$$icienc#. E.O. 3*3 sanctions t!e $o&&o"in% actions 'nderta:en $or s'c!
p'rposeSTUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
7)8Restr'ct're t!e interna& or%aniJation o$ t!e O$$ice o$ t!e President Proper, inc&'din% t!e i,,ediate
O$$ices, t!e Presidentia& Specia& AssistantsOAdvisers S#ste, and t!e Co,,on Sta$$ S'pport S#ste,, .#
a.o&is!in%, conso&idatin%, or ,er%in% 'nits t!ereo$ or trans$errin% $'nctions $ro, one 'nit to anot!erD
738Trans$er an# $'nction 'nder t!e O$$ice o$ t!e President to an# ot!er @epart,ent or A%enc# as "e&& as
trans$er $'nctions to t!e O$$ice o$ t!e President $ro, ot!er @epart,ents and A%enciesD andcra&a"&i.rar#
7(8Trans$er an# a%enc# 'nder t!e O$$ice o$ t!e President to an# ot!er @epart,ent or A%enc# as "e&& as
trans$er a%encies to t!e O$$ice o$ t!e President $ro, ot!er depart,ents or a%encies.4STrU]&&
c!anro.&es virt'a& &a" &i.rar#
In t!e case o$ 6':&od n% Na"anin% EII6 v. ca,ora0 t!e Co'rt a$$ir,ed t!at t!e PresidentQs a't!orit# to
carr# o't a reor%aniJation in an# .ranc! or a%enc# o$ t!e e9ec'tive depart,ent is an e9press %rant .# t!e
&e%is&at're .# virt'e o$ E.O. 3*3, t!'sSTrUW&UWSb
6't o$ co'rse, t!e &ist o$ &e%a& .asis a't!oriJin% t!e President to reor%aniJe an# depart,ent or a%enc# in
t!e e9ec'tive .ranc! does not !ave to end !ere. =e ,'st not &ose si%!t o$ t!e ver# so'rce o$ t!e po"er
t!at "!ic! constit'tes an e9press %rant o$ po"er. Under Section (), 6oo: III o$ E9ec'tive Order No. 3*3
7ot!er"ise :no"n as t!e Ad,inistrative Code o$ )*+-8, ?t!e President, s'.5ect to t!e po&ic# o$ t!e
E9ec'tive O$$ice and in order to ac!ieve si,p&icit#, econo,# and e$$icienc#, s!a&& !ave t!e contin'in%
a't!orit# to reor%aniJe t!e ad,inistrative str'ct're o$ t!e O$$ice o$ t!e President.? For t!is p'rpose, !e
,a# trans$er t!e $'nctions o$ ot!er @epart,ents or A%encies to t!e O$$ice o$ t!e President. 7E,p!asis
s'pp&ied8cra&a"&i.rar#
And in @o,in%o v. ca,ora,; t!e Co'rt %ave t!e rationa&e .e!ind t!e PresidentQs contin'in% a't!orit# in
t!is "iseSTrUW&UWSb
T!e &a" %rants t!e President t!is po"er in reco%nition o$ t!e rec'rrin% need o$ ever# President to
reor%aniJe !is o$$ice ?to ac!ieve si,p&icit#, econo,# and e$$icienc#.? T!e O$$ice o$ t!e President is t!e
nerve center o$ t!e E9ec'tive 6ranc!. To re,ain e$$ective and e$$icient, t!e O$$ice o$ t!e President ,'st
.e capa.&e o$ .ein% s!aped and res!aped .# t!e President in t!e ,anner !e dee,s $it to carr# o't !is
directives and po&icies. A$ter a&&, t!e O$$ice o$ t!e President is t!e co,,and post o$ t!e President.
7E,p!asis s'pp&ied8cra&a"&i.rar#
C&ear&#, t!e a.o&ition o$ t!e PAGC and t!e trans$er o$ its $'nctions to a division specia&&# created "it!in t!e
O@ESLA is proper&# "it!in t!e prero%ative o$ t!e President 'nder !is contin'in% ?de&e%ated &e%is&ative
a't!orit# to reor%aniJe? !is o"n o$$ice p'rs'ant to E.O. 3*3.
Genera&&#, t!is a't!orit# to i,p&e,ent or%aniJationa& c!an%es is &i,ited to trans$errin% eit!er an o$$ice or a
$'nction $ro, t!e O$$ice o$ t!e President to anot!er @epart,ent or A%enc#, and t!e ot!er "a#
aro'nd.-STrU]&&
On&# Section ()7)8 %ives t!e President a virt'a& $ree!and in dea&in% "it! t!e interna& str'ct're o$ t!e O$$ice
o$ t!e President Proper .# a&&o"in% !i, to ta:e actions as e9tre,e as a.o&ition, conso&idation or ,er%er o$
'nits, apart $ro, t!e &ess drastic ,ove o$ trans$errin% $'nctions and o$$ices $ro, one 'nit to anot!er.
A%ain, in @o,in%o v. ca,ora+ t!e Co'rt notedSTrUW&UWSb
Ho"ever, t!e PresidentQs po"er to reor%aniJe t!e O$$ice o$ t!e President 'nder Section () 738 and 7(8 o$
EO 3*3 s!o'&d .e distin%'is!ed $ro, !is po"er to reor%aniJe t!e O$$ice o$ t!e President Proper. Under
Section () 7)8 o$ EO 3*3, t!e President can reor%aniJe t!e O$$ice o$ t!e President Proper .# a.o&is!in%,
conso&idatin% or ,er%in% 'nits, or .# trans$errin% $'nctions $ro, one 'nit to anot!er. In contrast, 'nder
Section () 738 and 7(8 o$ EO 3*3, t!e PresidentQs po"er to reor%aniJe o$$ices o'tside t!e O$$ice o$ t!e
President Proper .'t sti&& "it!in t!e O$$ice o$ t!e
President is &i,ited to ,ere&# trans$errin% $'nctions or a%encies $ro, t!e O$$ice o$ t!e President to
@epart,ents or A%encies, and vice versa.
T!e distinction .et"een t!e a&&o"a.&e or%aniJationa& actions 'nder Section ()7)8 on t!e one !and and
Section () 738 and 7(8 on t!e ot!er is cr'cia& not on&# as it a$$ects e,p&o#eesQ ten'ria& sec'rit# .'t a&so
inso$ar as it to'c!es 'pon t!e va&idit# o$ t!e reor%aniJation, t!at is, "!et!er t!e e9ec'tive actions
'nderta:en $a&& "it!in t!e &i,itations prescri.ed 'nder E.O. 3*3. =!en t!e PAGC "as created 'nder E.O.
)3, it "as co,posed o$ a C!air,an and t"o 738 Co,,issioners "!o !e&d t!e ran:s o$ Presidentia&
Assistant II and I, respective&#,* and "as p&aced direct&# ?'nder t!e O$$ice o$ t!e President.?)2 On t!e
ot!er !and, t!e O@ESLA, to "!ic! t!e $'nctions o$ t!e PAGC !ave no" .een trans$erred, is an o$$ice
"it!in t!e O$$ice o$ t!e President Proper.)) Since .ot! o$ t!ese o$$ices .e&on% to t!e O$$ice o$ t!e
President Proper, t!e reor%aniJation .# "a# o$ a.o&is!in% t!e PAGC and trans$errin% its $'nctions to t!e
O@ESLA is a&&o"a.&e 'nder Section () 7)8 o$ E.O. 3*3.
Petitioner, !o"ever, %oes on to assert t!at t!e President "ent .e#ond t!e a't!orit# %ranted .# E.O. 3*3
$or !i, to reor%aniJe t!e e9ec'tive depart,ent since !is iss'ance o$ E.O. )( did not ,ere&# invo&ve t!e
a.o&ition o$ an o$$ice .'t t!e creation o$ one as "e&&. He ar%'es t!at no"!ere in t!e &e%a& de$inition &aid
do"n .# t!e Co'rt in severa& cases does a reor%aniJation inc&'de t!e act o$ creatin% an o$$ice.
T!e contention is ,isp&aced.
T!e Reor%aniJation @id not Entai& t!e Creation o$ a Ne", Separate and @istinct O$$ice.
T!e a.o&ition o$ t!e PAGC did not re<'ire t!e creation o$ a ne", additiona& and distinct o$$ice as t!e d'ties
and $'nctions t!at pertained to t!e de$'nct anti1%ra$t .od# "ere si,p&# trans$erred to t!e O@ESLA, "!ic!
is an e9istin% o$$ice "it!in t!e O$$ice o$ t!e President Proper. T!e reor%aniJation re<'ired no ,ore t!an a
,ere a&teration o$ t!e ad,inistrative str'ct're o$ t!e O@ESLA t!ro'%! t!e esta.&is!,ent o$ a t!ird division
t!e Investi%ative and Ad5'dicator# @ivision t!ro'%! "!ic! O@ESLA co'&d ta:e on t!e additiona& $'nctions
it !as .een tas:ed to disc!ar%e 'nder E.O. )(. In CanoniJado v. A%'irre,)3 =e r'&ed t!at
Reor%aniJation ta:es p&ace "!en t!ere is an a&teration o$ t!e e9istin% str'ct're o$ %overn,ent o$$ices or
'nits t!erein, inc&'din% t!e &ines o$ contro&, a't!orit# and responsi.i&it# .et"een t!e,. It invo&ves a
red'ction o$ personne&, conso&idation o$ o$$ices, or a.o&ition t!ereo$ .# reason o$ econo,# or red'ndanc#
o$ $'nctions.
T!e Reor%aniJation "as P'rs'ed in Good Fait!.
A va&id reor%aniJation ,'st not on&# .e e9ercised t!ro'%! &e%iti,ate a't!orit# .'t ,'st a&so .e p'rs'ed in
%ood $ait!. A reor%aniJation is said to .e carried o't in %ood $ait! i$ it is done $or p'rposes o$ econo,# and
e$$icienc#.)( It appears in t!is case t!at t!e strea,&inin% o$ $'nctions "it!in t!e O$$ice o$ t!e President
Proper "as p'rs'ed "it! s'c! p'rposes in ,ind.
In its =!ereas c&a'ses, E.O. )( cites as .ases $or t!e reor%aniJation t!e po&ic# dictates o$ eradicatin%
corr'ption in t!e %overn,ent and pro,otin% econo,# and e$$icienc# in t!e .'rea'crac#. Indeed, t!e
econo,ica& e$$ects o$ t!e reor%aniJation is s!o"n .# t!e $act t!at "!i&e Con%ress !ad initia&&# appropriated
P33 Mi&&ion $or t!e PAGCQs operation in t!e 32)2 ann'a& .'d%et,)4 no separate or added $'ndin% o$ s'c!
a considera.&e a,o'nt "as ever re<'ired a$ter t!e trans$er o$ t!e PAGC $'nctions to t!e IA@1O@ESLA.
Apparent&#, t!e .'d%etar# re<'ire,ents t!at t!e IA@1O@ESLA needed to disc!ar%e its $'nctions and
,aintain its personne& "o'&d .e so'rced $ro, t!e $o&&o"in% #earQs appropriation $or t!e PresidentQs O$$ices
'nder t!e Genera& Appropriations Act o$ 32)).)0 Petitioner asseverates, !o"ever, t!at since Con%ress
did not indicate t!e ,anner .# "!ic! t!e appropriation $or t!e O$$ice o$ t!e President "as to .e
distri.'ted, ta:in% t!ere$ro, t!e operationa& $'nds o$ t!e IA@1O@ESLA "o'&d a,o'nt to an i&&e%a&
appropriation .# t!e President. T!e contention is "it!o't &e%a& .asis.
T!ere is no 's'rpation o$ t!e &e%is&ative po"er to appropriate p'.&ic $'nds.
In t!e c!ie$ e9ec'tive d"e&& t!e po"ers to r'n %overn,ent. P&aced 'pon !i, is t!e po"er to reco,,end
t!e .'d%et necessar# $or t!e operation o$ t!e Govern,ent,); "!ic! i,p&ies t!at !e !as t!e necessar#
a't!orit# to eva&'ate and deter,ine t!e str'ct're t!at eac! %overn,ent a%enc# in t!e e9ec'tive
depart,ent "o'&d need to operate in t!e ,ost econo,ica& and e$$icient ,anner.)- Hence, t!e e9press
reco%nition 'nder Section -+ o$ R.A. **-2 or t!e Genera& Appropriations Act o$ 32)2 o$ t!e President s
a't!orit# to ?direct c!an%es in t!e or%aniJationa& 'nits or :e# positions in an# depart,ent or a%enc#.? T!e
a$orecited provision, o$ten and consistent&# inc&'ded in t!e %enera& appropriations &a"s, reco%niJes t!e
e9tent o$ t!e President s po"er to reor%aniJe t!e e9ec'tive o$$ices and a%encies 'nder !i,, "!ic! is,
?even to t!e e9tent o$ ,odi$#in% and rea&i%nin% appropriations $or t!at p'rpose.?)+STrU]&&
And to $'rt!er ena.&e t!e President to r'n t!e a$$airs o$ t!e e9ec'tive depart,ent, !e is &i:e"ise %iven
constit'tiona& a't!orit# to a'%,ent an# ite, in t!e Genera& Appropriations La" 'sin% t!e savin%s in ot!er
ite,s o$ t!e appropriation $or !is o$$ice.)* In $act, !e is e9p&icit&# a&&o"ed .# &a" to trans$er an# $'nd
appropriated $or t!e di$$erent depart,ents, .'rea's, o$$ices and a%encies o$ t!e E9ec'tive @epart,ent
"!ic! is inc&'ded in t!e Genera& Appropriations Act, to an# pro%ra,, pro5ect or activit# o$ an# depart,ent,
.'rea' or o$$ice inc&'ded in t!e Genera& Appropriations Act or approved a$ter its enact,ent.32STrU]&&
T!'s, "!i&e t!ere ,a# .e no speci$ic a,o'nt ear,ar:ed $or t!e IA@1O@ESLA $ro, t!e tota& a,o'nt
appropriated .# Con%ress in t!e ann'a& .'d%et $or t!e O$$ice o$ t!e President, t!e necessar# $'nds $or t!e
IA@1O@ESLA ,a# .e proper&# so'rced $ro, t!e PresidentQs o"n o$$ice .'d%et "it!o't co,,ittin% an#
i&&e%a& appropriation. A$ter a&&, t!ere is no 's'rpation o$ t!e &e%is&at'reQs po"er to appropriate $'nds "!en
t!e President si,p&# a&&ocates t!e e9istin% $'nds previo's&# appropriated .# Con%ress $or !is o$$ice.
T!e IA@1O@ESLA is a $act1$indin% and reco,,endator# .od# not vested "it! <'asi15'dicia& po"ers.
Petitioner ne9t avers t!at t!e IA@1O@ESLA "as i&&e%a&&# vested "it! 5'dicia& po"er "!ic! is reserved to
t!e C'dicia& @epart,ent and, .# "a# o$ e9ception t!ro'%! an e9press %rant .# t!e &e%is&at're, to
ad,inistrative a%encies. He points o't t!at t!e na,e Investi%ative and Ad5'dicator# @ivision is proo$ itse&$
t!at t!e IA@1O@ESLA "ie&ds <'asi15'dicia& po"er.
T!e ar%',ent is ten'o's. As t!e OSG apt&# e9p&ained in its Co,,ent,3) "!i&e t!e ter, ?ad5'dicator#?
appears part o$ its appe&&ation, t!e IA@1O@ESLA cannot tr# and reso&ve cases, its a't!orit# .ein% &i,ited
to t!e cond'ct o$ investi%ations, preparation o$ reports and s'.,ission o$ reco,,endations. E.O. )(
e9p&icit&# states t!at t!e IA@1O@ESLA s!a&& ?per$or, po"ers, $'nctions and d'ties 999, o$ PAGC.?33STrU]&&
Under E.O. )3, t!e PAGC "as %iven t!e a't!orit# to ?investi%ate or !ear ad,inistrative cases or
co,p&aints a%ainst a&& presidentia& appointees in t!e %overn,ent?3( and to ?s'.,it its report and
reco,,endations to t!e President.?34 T!e IA@1O@ESLA is a $act1$indin% and reco,,endator# .od# to
t!e President, not !avin% t!e po"er to sett&e controversies and ad5'dicate cases. As t!e Co'rt r'&ed in
CariXWo v. Co,,ission on H',an Ri%!ts,30 and &ater reiterated in 6irao%o v. T!e P!i&ippine Tr't!
Co,,ission3;STrU]&&
Fact1$indin% is not ad5'dication and it cannot .e &i:ened to t!e 5'dicia& $'nction o$ a co'rt o$ 5'stice, or even
a <'asi15'dicia& a%enc# or o$$ice. T!e $'nction o$ receivin% evidence and ascertainin% t!ere$ro, t!e $acts
o$ a controvers# is not a 5'dicia& $'nction. To .e considered as s'c!, t!e act o$ receivin% evidence and
arrivin% at $act'a& conc&'sions in a controvers# ,'st .e acco,panied .# t!e a't!orit# o$ app&#in% t!e &a"
to t!e $act'a& conc&'sions to t!e end t!at t!e controvers# ,a# .e decided or deter,ined a't!oritative&#,
$ina&&# and de$initive&#, s'.5ect to s'c! appea&s or ,odes o$ revie" as ,a# .e provided .# &a".
T!e PresidentQs a't!orit# to iss'e E.O. )( and constit'te t!e IA@1O@ESLA as !is $act1$indin% investi%ator
cannot .e do'.ted. A$ter a&&, as C!ie$ E9ec'tive, !e is %ranted $'&& contro& over t!e E9ec'tive @epart,ent
to ens're t!e en$orce,ent o$ t!e &a"s. Section )-, Artic&e III o$ t!e Constit'tion providesSTrUW&UWSb
Section )-. T!e President s!a&& !ave contro& o$ a&& t!e e9ec'tive depart,ents, .'rea's and o$$ices. He
s!a&& ens're t!at t!e &a"s .e $ait!$'&&# e9ec'ted.
T!e o.&i%ation to see to it t!at &a"s are $ait!$'&&# e9ec'ted necessitates t!e correspondin% po"er in t!e
President to cond'ct investi%ations into t!e cond'ct o$ o$$icia&s and e,p&o#ees in t!e e9ec'tive
depart,ent.3-STrU]&&
T!e IA@1O@ESLA does not encroac! 'pon t!e po"ers and d'ties o$ t!e O,.'ds,an.
Contrar# to petitionerQs contention, t!e IA@1O@ESLA did not encroac! 'pon t!e O,.'ds,anQs pri,ar#
5'risdiction "!en it too: co%niJance o$ t!e co,p&aint a$$idavit $i&ed a%ainst !i, not"it!standin% t!e ear&ier
$i&in% o$ cri,ina& and ad,inistrative cases invo&vin% t!e sa,e c!ar%es and a&&e%ations .e$ore t!e O$$ice o$
t!e O,.'ds,an. T!e pri,ar# 5'risdiction o$ t!e O,.'ds,an to investi%ate and prosec'te cases re$ers to
cri,ina& cases co%niJa.&e .# t!e Sandi%an.a#an and not to ad,inistrative cases. It is on&# in t!e e9ercise
o$ its pri,ar# 5'risdiction t!at t!e O,.'ds,an ,a#, at an# ti,e, ta:e over t!e investi%ation .ein%
cond'cted .# anot!er investi%ator# a%enc#. Section )0 7)8 o$ R.A. No. ;--2 or t!e O,.'ds,an Act o$
)*+*, e,po"ers t!e O,.'ds,an to
7)8Investi%ate and prosec'te on its o"n or on co,p&aint .# an# person, an# act or o,ission o$ an# p'.&ic
o$$icer or e,p&o#ee, o$$ice or a%enc#, "!en s'c! act or o,ission appears to .e i&&e%a&, 'n5'st, i,proper or
ine$$icient. It !as pri,ar# 5'risdiction over cases co%niJa.&e .# t!e Sandi%an.a#an and, in t!e e9ercise o$
its pri,ar# 5'risdiction, it ,a# ta:e over, at an# sta%e, $ro, an# investi%ator# a%enc# o$ %overn,ent, t!e
investi%ation o$ s'c! cases. 7E,p!asis s'pp&ied8cra&a"&i.rar#
Since t!e case $i&ed .e$ore t!e IA@1O@ESLA is an ad,inistrative discip&inar# case $or %rave ,iscond'ct,
petitioner ,a# not invo:e t!e pri,ar# 5'risdiction o$ t!e O,.'ds,an to prevent t!e IA@1O@ESLA $ro,
proceedin% "it! its investi%ation. In an# event, t!e O,.'ds,anQs a't!orit# to investi%ate .ot! e&ective and
appointive o$$icia&s in t!e %overn,ent, e9tensive as it ,a# .e, is .# no ,eans e9c&'sive. It is s!ared "it!
ot!er si,i&ar&# a't!oriJed %overn,ent a%encies.3+STrU]&&
=!i&e t!e O,.'ds,anQs $'nction %oes into t!e deter,ination o$ t!e e9istence o$ pro.a.&e ca'se and t!e
ad5'dication o$ t!e ,erits o$ a cri,ina& acc'sation, t!e investi%ative a't!orit# o$ t!e IA@1 O@ESLA is
&i,ited to t!at o$ a $act1$indin% investi%ator "!ose deter,inations and reco,,endations re,ain so 'nti&
acted 'pon .# t!e President. As s'c!, it co,,its no 's'rpation o$ t!e O,.'ds,anQs constit'tiona& d'ties.
E9ec'tive Order No. )( @oes Not Iio&ate PetitionerQs Ri%!t to @'e Process and t!e E<'a& Protection o$
t!e La"s.
Petitioner %oes on to assai& E.O. )( as vio&ative o$ t!e e<'a& protection c&a'se pointin% to t!e ar.itrariness
o$ &i,itin% t!e IA@1O@ESLAQs investi%ation on&# to presidentia& appointees occ'p#in% 'pper1&eve& positions
in t!e %overn,ent. T!e e<'a& protection o$ t!e &a"s is a %'arant# a%ainst an# $or, o$ 'nd'e $avoritis, or
!osti&it# $ro, t!e %overn,ent.3* It is e,.raced 'nder t!e d'e process concept and si,p&# re<'ires t!at,
in t!e app&ication o$ t!e &a", ?a&& persons or t!in%s si,i&ar&# sit'ated s!o'&d .e treated a&i:e, .ot! as to
ri%!ts con$erred and responsi.i&ities i,posed.?(2 T!e e<'a& protection c&a'se, !o"ever, is not a.so&'te
.'t s'.5ect to reasona.&e c&assi$ication so t!at a%%r'pations .earin% s'.stantia& distinctions ,a# .e
treated di$$erent&# $ro, eac! ot!er. T!is "e r'&ed in Farinas v. E9ec'tive Secretar#,() "!erein "e $'rt!er
stated t!at
T!e e<'a& protection o$ t!e &a" c&a'se is a%ainst 'nd'e $avor and individ'a& or c&ass privi&e%e, as "e&& as
!osti&e discri,ination or t!e oppression o$ ine<'a&it#. It is not intended to pro!i.it &e%is&ation "!ic! is
&i,ited eit!er in t!e o.5ect to "!ic! it is directed or .# territor# "it!in "!ic! it is to operate. It does not
de,and a.so&'te e<'a&it# a,on% residentsD it ,ere&# re<'ires t!at a&& persons s!a&& .e treated a&i:e, 'nder
&i:e circ',stances and conditions .ot! as to privi&e%es con$erred and &ia.i&ities en$orced. T!e e<'a&
protection c&a'se is not in$rin%ed .# &e%is&ation "!ic! app&ies on&# to t!ose persons $a&&in% "it!in a
speci$ied c&ass, i$ it app&ies a&i:e to a&& persons "it!in s'c! c&ass, and reasona.&e %ro'nds e9ist $or ,a:in%
a distinction .et"een t!ose "!o $a&& "it!in s'c! c&ass and t!ose "!o do not. 7E,p!asis
s'pp&ied8cra&a"&i.rar#
Presidentia& appointees co,e 'nder t!e direct discip&inin% a't!orit# o$ t!e President. T!is proceeds $ro,
t!e "e&& sett&ed princip&e t!at, in t!e a.sence o$ a contrar# &a", t!e po"er to re,ove or to discip&ine is
&od%ed in t!e sa,e a't!orit# on "!ic! t!e po"er to appoint is vested.(3 Havin% t!e po"er to re,ove
andOor discip&ine presidentia& appointees, t!e President !as t!e coro&&ar# a't!orit# to investi%ate s'c!
p'.&ic o$$icia&s and &oo: into t!eir cond'ct in o$$ice.(( Petitioner is a presidentia& appointee occ'p#in% t!e
!i%!1&eve& position o$ C!air,an o$ t!e L=UA. Necessari&#, !e co,es 'nder t!e discip&inar# 5'risdiction o$
t!e President, "!o is "e&& "it!in !is ri%!t to order an investi%ation into ,atters t!at re<'ire !is in$or,ed
decision.
T!ere are s'.stantia& distinctions t!at set apart presidentia& appointees occ'p#in% 'pper1&eve& positions in
%overn,ent $ro, non1presidentia& appointees and t!ose t!at occ'p# t!e &o"er positions in %overn,ent. In
Sa&',.ides v. O$$ice o$ t!e O,.'ds,an,(4 "e !ad r'&ed e9tensive&# on t!e s'.stantia& distinctions t!at
e9ist .et"een e&ective and appointive p'.&ic o$$icia&s, t!'sSTrUW&UWSb
S'.stantia& distinctions c&ear&# e9ist .et"een e&ective o$$icia&s and appointive o$$icia&s. T!e $or,er occ'p#
t!eir o$$ice .# virt'e o$ t!e ,andate o$ t!e e&ectorate. T!e# are e&ected to an o$$ice $or a de$inite ter, and
,a# .e re,oved t!ere$ro, on&# 'pon strin%ent conditions. On t!e ot!er !and, appointive o$$icia&s !o&d
t!eir o$$ice .# virt'e o$ t!eir desi%nation t!ereto .# an appointin% a't!orit#. So,e appointive o$$icia&s !o&d
t!eir o$$ice in a per,anent capacit# and are entit&ed to sec'rit# o$ ten're "!i&e ot!ers serve at t!e p&eas're
o$ t!e appointin% a't!orit#.
9 9 9
An e&ection is t!e e,.odi,ent o$ t!e pop'&ar "i&&, per!aps t!e p'rest e9pression o$ t!e soverei%n po"er o$
t!e peop&e. It invo&ves t!e c!oice or se&ection o$ candidates to p'.&ic o$$ice .# pop'&ar vote. Considerin%
t!at e&ected o$$icia&s are p't in o$$ice .# t!eir constit'ents $or a de$inite ter,, 9 9 9 co,p&ete de$erence is
accorded to t!e "i&& o$ t!e e&ectorate t!at t!e# .e served .# s'c! o$$icia&s 'nti& t!e end o$ t!e ter, $or
"!ic! t!e# "ere e&ected. In contrast, t!ere is no s'c! e9pectation inso$ar as appointed o$$icia&s are
concerned. 7E,p!asis s'pp&ied8cra&a"&i.rar#
A&so, contrar# to petitionerQs assertions, !is ri%!t to d'e process "as not vio&ated "!en t!e IA@1O@ESLA
too: co%niJance o$ t!e ad,inistrative co,p&aint a%ainst !i, since !e "as %iven s'$$icient opport'nit# to
oppose t!e $or,a& co,p&aint $i&ed .# Secretar# P'risi,a. In ad,inistrative proceedin%s, t!e $i&in% o$
c!ar%es and %ivin% reasona.&e opport'nit# $or t!e person so c!ar%ed to ans"er t!e acc'sations a%ainst
!i, constit'te t!e ,ini,', re<'ire,ents o$ d'e process,(0 "!ic! si,p&# ,eans !avin% t!e opport'nit# to
e9p&ain one s side.(; Hence, as &on% as petitioner "as %iven t!e opport'nit# to e9p&ain !is side and
present evidence, t!e re<'ire,ents o$ d'e process are satis$actori&# co,p&ied "it! .eca'se "!at t!e &a"
a.!ors is an a.so&'te &ac: o$ opport'nit# to .e !eard.(- T!e records s!o" t!at petitioner "as iss'ed an
Order re<'irin% !i, to s'.,it !is "ritten e9p&anation 'nder oat! "it! respect to t!e c!ar%e o$ %rave
,iscond'ct $i&ed a%ainst !i,. His o"n $ai&'re to s'.,it !is e9p&anation despite notice de$eats !is
s'.se<'ent c&ai, o$ denia& o$ d'e process.
Fina&&#, petitioner do'.ts t!at t!e IA@1O@ESLA can &a"$'&&# per$or, its d'ties as an i,partia& tri.'na&,
contendin% t!at .ot! t!e IA@1O@ESLA and respondent Secretar# P'risi,a are connected to t!e
President. T!e ,ere s'spicion o$ partia&it# "i&& not s'$$ice to inva&idate t!e actions o$ t!e IA@1O@ESLA.
Mere a&&e%ation is not e<'iva&ent to proo$. 6ias and partia&it#
cannot .e pres',ed.(+ Petitioner ,'st present s'.stantia& proo$ to s!o" t!at t!e &A@1O@ES LA !ad
'n5'sti$ia.&# sided a%ainst !i, in t!e cond'ct o$ t!e investi%ation. No s'c! evidence !as .een presented
as to de$eat t!e pres',ption o$ re%'&arit# , t!e per$or,ance o$ t!e $act1$indin% investi%atorQs d'ties. T!e
assertion, t!ere$ore, deserves scant consideration.
Ever# &a" !as in its $avor t!e pres',ption o$ constit'tiona&it#, and to 5'sti$# its n'&&i$ication, t!ere ,'st .e a
c&ear and 'ne<'ivoca& .reac! o$ t!e Constit'tion, not a do'.t$'& and ar%',entative one.(* Petitioner !as
$ai&ed to disc!ar%e t!e .'rden o$ provin% t!e i&&e%a&it# o$ E.O. )(, "!ic! IS ind'.ita.&# a va&id e9ercise o$
t!e PresidentQs contin'in% a't!orit# to reor%aniJe t!e O$$ice o$ t!e President.
=HEREFORE, pre,ises considered, t!e petition IS !ere.# @ISMISSE@.
LUCIA 6ARRAME@A I@A. @E 6ALLESTEROS, Petitioner, v. RURAL 6ANN OF CANAMAN INC.,
represented .# its Li<'idator, t!e p!i&ippine deposit ins'rance corporation, Respondent.
It appears $ro, t!e records t!at on Marc! )-, 3222, petitioner L'cia 6arra,eda Ida. @e 6a&&esteros
7L'cia8 $i&ed a co,p&aint $or Ann'&,ent o$ @eed o$ E9tra5'dicia& Partition, @eed o$ Mort%a%e and @a,a%es
"it! pra#er $or Pre&i,inar# In5'nction a%ainst !er c!i&dren, Ro#, Rito, A,#, Ara.e&, Rico, A.e, Ponce Re9
and Adden, a&& s'rna,ed 6a&&esteros, and t!e R'ra& 6an: o$ Cana,an, Inc., 6aao 6ranc! 7R6CI8 .e$ore
t!e RTC1Iri%a. T!e case "as doc:eted as Civi& Case No. IR1()3+.
In !er co,p&aint, L'cia a&&e%ed t!at !er deceased !'s.and, E'%enio, &e$t t"o 738 parce&s o$ &and &ocated in
San Nico&as, 6aao, Ca,arines S'r, eac! "it! an area o$ (0- s<'are ,etersD t!at on Marc! ;, )**0,
"it!o't !er :no"&ed%e and consent, !er c!i&dren e9ec'ted a deed o$ e9tra5'dicia& partition and "aiver o$
t!e estate o$ !er !'s.and "!erein a&& t!e !eirs, inc&'din% L'cia, a%reed to a&&ot t!e t"o parce&s to Rico
6a&&esteros 7Rico8D t!at, sti&&, "it!o't !er :no"&ed%e and consent, Rico ,ort%a%ed Parce& 6 o$ t!e estate in
$avor o$ R6CI "!ic! ,ort%a%e "as .ein% $orec&osed $or $ai&'re to sett&e t!e &oan sec'red .# t!e &otD and
t!at L'cia "as occ'p#in% Parce& 6 and !ad no ot!er p&ace to &ive. S!e pra#ed t!at t!e deed o$
e9tra5'dicia& partition and "aiver, and t!e s'.se<'ent ,ort%a%e in $avor o$ R6CI .e dec&ared n'&& and void
!avin% .een e9ec'ted "it!o't !er :no"&ed%e and consent. S!e a&so pra#ed $or da,a%es.
In its Ans"er, R6CI c&ai,ed t!at in )*-*, L'cia so&d one o$ t!e t"o parce&s to Rico "!ic! represented !er
s!are in t!e estate o$ !er !'s.and. T!e e9tra5'dicia& partition, "aiver and ,ort%a%e "ere a&& e9ec'ted "it!
t!e :no"&ed%e and consent o$ L'cia a&t!o'%! s!e "as not a.&e to si%n t!e doc',ent. R6CI $'rt!er
c&ai,ed t!at Parce& 6 !ad a&read# .een $orec&osed "a# .ac: in )*** "!ic! $act "as :no"n to L'cia
t!ro'%! t!e a'ctionin% notar# p'.&ic. Attorne#Qs $ees "ere p&eaded as co'nterc&ai,.
T!e case "as t!en set $or pre1tria& con$erence. @'rin% t!e pre1tria&, R6CIQs co'nse& $i&ed a ,otion to
"it!dra" a$ter .ein% in$or,ed t!at P!i&ippine @eposit Ins'rance Corporation 7P@IC8 "o'&d !and&e t!e
case as R6CI !ad a&read# .een c&osed and p&aced 'nder t!e receivers!ip o$ t!e P@IC. Conse<'ent&#, on
Fe.r'ar# 4, 3223, t!e &a"#ers o$ P@IC too: over t!e case o$ R6CI.
On Ma# *, 322(, R6CI, t!ro'%! P@IC, $i&ed a ,otion to dis,iss on t!e %ro'nd t!at t!e RTC1Iri%a !as no
5'risdiction over t!e s'.5ect ,atter o$ t!e action. R6CI stated t!at p'rs'ant to Section (2, Rep'.&ic Act
No. -;0( 7RA No. -;0(8, ot!er"ise :no"n as t!e QNe" Centra& 6an: Act,Q t!e RTC1Ma:ati, a&read#
constit'ted itse&$, per its Order dated A'%'st )2, 322), as t!e &i<'idation co'rt to assist P@IC in
'nderta:in% t!e &i<'idation o$ R6CI. T!'s, t!e s'.5ect ,atter o$ Civi& Case No. IR1()3+ $e&& "it!in t!e
e9c&'sive 5'risdiction o$ s'c! &i<'idation co'rt. L'cia opposed t!e ,otion.
On C'&# 3*, 322(, t!e RTC1Iri%a iss'ed an ordercra&a"3 %rantin% t!e Motion to @is,iss, to "itc!anro.&es
virt'a& &a" &i.rar#
T!is reso&ves t!e Motion to @is,iss $i&ed .# t!e de$endant R'ra& 6an: o$ Cana,an, Inc., pre,ised on t!e
%ro'nd t!at t!is co'rt !as no 5'risdiction over t!e s'.5ect ,atter o$ t!e action. T!is iss'e o$ 5'risdiction
"as raised in vie" o$ t!e prono'nce,ent o$ t!e S'pre,e Co'rt in On% v. C.A. 30( SCRA )20 and in t!e
case o$ HernandeJ v. R'ra& 6an: o$ L'cena, Inc., G.R. No. L13*-*) dated Can'ar# )2, )*-+, "!erein it
"as !e&d t!at Qt!e &i<'idation co'rt s!a&& !ave 5'risdiction to ad5'dicate a&& c&ai,s a%ainst t!e .an: "!et!er
t!e# .e a%ainst assets o$ t!e inso&vent .an:, $or Speci$ic Per$or,ance, 6reac! o$ Contract, @a,a%es or
"!atever.Q
It is in vie" o$ t!is 5'rispr'dentia& prono'nce,ent ,ade .# no &ess t!an t!e S'pre,e Co'rt, t!at t!is case
is, as $ar as de$endant R'ra& 6an: o$ Cana,an Inc., is concerned, !ere.# ordered @ISMISSE@ "it!o't
pre5'dice on t!e part o$ t!e p&ainti$$ to venti&ate t!eir c&ai, .e$ore t!e Li<'idation Co'rt no", RTC 6ranc!
0*, Ma:atiCit#.
SO OR@ERE@.
Not in con$or,it#, L'cia appea&ed t!e RTC r'&in% to t!e CA on t!e %ro'nd t!at t!e RTC1Iri%a erred in
dis,issin% t!e case .eca'se it !ad 5'risdiction over Civi& Case No. IR1()3+ 'nder t!e r'&e on ad!erence
o$ 5'risdiction.
On A'%'st )0, 322;, t!e CA rendered t!e <'estioned decision orderin% t!e conso&idation o$ Civi& Case
No. IR1()3+ and t!e &i<'idation case pendin% .e$ore RTC1Ma:ati. T!e appe&&ate co'rt ratiocinated t!'s
QT!e conso&idation is desira.&e in order to prevent con$'sion, to avoid ,'&tip&icit# o$ s'its and to save
'nnecessar# cost and e9pense. Need&ess to add, t!is proced're is "e&& in accord "it! t!e princip&e t!at
t!e r'&es o$ proced're s!a&& .e &i.era&&# constr'ed in order to pro,ote t!eir o.5ect and to assist t!e parties
in o.tainin% 5'st, speed# and ine9pensive deter,ination o$ ever# action and proceedin% 7Ia&&acar Transit,
Inc. v. Bap, )3; SCRA 022 E)*+(FD S'nta# v. A%'i&'J, 32* SCRA 022 E)**3F citin% Ra,os v. E.ar&e, )+3
SCRA 340 E)**2F8. It "o'&d .e ,ore in :eepin% "it! t!e de,ands o$ e<'it# i$ t!e cases are si,p&# ordered
conso&idated. P'rs'ant to Section 3, R'&e ), Revised R'&es o$ Co'rt, t!e r'&es on conso&idation s!o'&d .e
&i.era&&# constr'ed to ac!ieve t!e o.5ect o$ t!e parties in o.tainin% 5'st, speed# and ine9pensive
deter,ination o$ t!eir cases 7A&&ied 6an:in% Corporation v. Co'rt o$ Appea&s, 30* SCRA (-) E)**;F8. Q
T!e dispositive portion o$ t!e decision readsc!anro.&es virt'a& &a" &i.rar#
IN IIE= OF ALL THE FOREGOING, t!e appea&ed decision is !ere.# MO@IFIE@, in s'c! a "a# t!at t!e
dis,issa& o$ t!is case 7Civi& Case No. IR1()3+8 is set aside and in &ie' t!ereo$ anot!er one is entered
orderin% t!e conso&idation o$ said case "it! t!e &i<'idation case doc:eted as Specia& Proceedin% No. M1
03*2 .e$ore 6ranc! 0* o$ t!e Re%iona& o$ Ma:ati Cit#, entit&ed QIn Re Assistance in t!e C'dicia& Li<'idation
o$ R'ra& 6an: o$ Cana,an, Ca,arines S'r, Inc., P!i&ippine @eposit Corporation, Petitioner.Q No
prono'nce,ent as to cost.
SO OR@ERE@.cra&a"(
L'cia $i&ed a ,otion $or reconsiderationcra&a"4 .'t it "as denied .# t!e CA in its Reso&'tion dated
@ece,.er )4, 322;.cra&a"0
Hence, t!e present petition $or revie" on certiorari anc!ored on t!e $o&&o"in%
GROUN@S
7I8
THE COURT OF APPEALS ERRE@ IN NOT FIN@ING THAT THE REGIONAL TRIALCOURT OF IRIGA
CITB, 6RANCH (; IS IESTE@ =ITH CURIS@ICTION TO CONTINUE TRBING AN@ ULTIMATELB
@ECI@E CIIIL CASE NO. IR1()3+.
7II8
THE COURT OF APPEALS ERRE@ AN@ GRAIELB A6USE@ ITS @ISCRETION IN OR@ERING THE
CONSOLI@ATION OF CIIIL CASE NO. IR1()3+ =ITH THE LIAUI@ATION CASE @OCNETE@ AS
SPECIAL PROCEE@INGS NO. M103*2 6EFORE 6RANCH 0* OF THE REGIONAL TRIAL COURT OF
MANATI CITB.cra&a";
Given t!e $ore%oin% ar%',ents, t!e Co'rt $inds t!at t!e core iss'e to .e reso&ved in t!is petition invo&ves a
deter,ination o$ "!et!er a &i<'idation co'rt can ta:e co%niJance o$ a case "!erein t!e ,ain ca'se o$
action is not a si,p&e ,one# c&ai, a%ainst a .an: ordered c&osed, p&aced 'nder receivers!ip o$ t!e P@IC,
and 'nder%oin% a &i<'idation proceedin%.
L'cia contends t!at t!e RTC1Iri%a is vested "it! 5'risdiction over Civi& Case No. ()3+, t!e constit'tion o$
t!e &i<'idation co'rt not"it!standin%. Accordin% to !er, t!e case "as $i&ed .e$ore t!e RTC1Iri%a on Marc!
)-, 3222 at t!e ti,e R6CI "as sti&& doin% .'siness or .e$ore t!e de$endant .an: "as p&aced 'nder
receivers!ip o$ P@IC in Can'ar# 322).
S!e $'rt!er ar%'es t!at t!e conso&idation o$ t!e t"o cases is i,proper. Her case, "!ic! is $or ann'&,ent o$
deed o$ partition and "aiver, deed o$ ,ort%a%e and da,a%es, cannot .e &e%a&&# .ro'%!t .e$ore t!e RTC1
Ma:ati "it! t!e &i<'idation case considerin% t!at !er ca'se o$ action a%ainst R6CI is not a si,p&e c&ai,
arisin% o't o$ a creditor1de.tor re&ations!ip, .'t one "!ic! invo&ves !er ri%!ts and interest over a certain
propert# irre%'&ar&# ac<'ired .# R6CI. Neit!er is s!e a creditor o$ t!e .an:, as on&# t!e creditors o$ t!e
inso&vent .an: are a&&o"ed to $i&e and venti&ate c&ai,s .e$ore t!e &i<'idator, p'rs'ant to t!e A'%'st )2,
322) Order o$ t!e RTC1Ma:ati "!ic! %ranted t!e petition $or assistance in t!e &i<'idation o$ R6CI.
In its Co,,ent,cra&a"- P@IC, as &i<'idator o$ R6CI, co'nters t!at t!e conso&idation o$ Civi& Case No.
()3+ "it! t!e &i<'idation proceedin% is proper. It posits t!at t!e &i<'idation co'rt o$ R6CI, !avin% .een
esta.&is!ed, s!a&& !ave e9c&'sive 5'risdiction over a&& c&ai,s a%ainst t!e said .an:.
A$ter d'e consideration, t!e Co'rt $inds t!e petition devoid o$ ,erit.
L'ciaQs ar%',ent, t!at t!e RTC1Iri%a is vested "it! 5'risdiction to contin'e tr#in% Civi& Case No. IR1()3+
'nti& its $ina& disposition, evident&# $a&&s o't $ro, a strained interpretation o$ t!e &a" and 5'rispr'dence. S!e
contends t!atc!anro.&es virt'a& &a" &i.rar#
Since t!e RTC1Iri%a !as a&read# o.tained 5'risdiction over t!e case it s!o'&d contin'e e9ercisin% s'c!
5'risdiction 'nti& t!e $ina& ter,ination o$ t!e case. T!e 5'risdiction o$ a co'rt once attac!ed cannot .e
o'sted .# s'.se<'ent !appenin%s or events, a&t!o'%! o$ a c!aracter "!ic! "o'&d !ave prevented
5'risdiction $ro, attac!in% in t!e $irst instance, and t!e Co'rt retains 5'risdiction 'nti& it $ina&&# disposes o$
t!e case 7Ar'e%o Cr. v. Co'rt o$ Appea&s, 304 SCRA -))8.
=!en a co'rt !as a&read# o.tained and is e9ercisin% 5'risdiction over a controvers#, its 5'risdiction to
proceed to $ina& deter,ination o$ t!e case is not a$$ected .# a ne" &e%is&ation trans$errin% 5'risdiction over
s'c! proceedin%s to anot!er tri.'na&. 7A&indao v. Coson, 3;4 SCRA 3))8. Once 5'risdiction is vested, t!e
sa,e is retained 'p to t!e end o$ t!e &iti%ation 76ernate v. Co'rt o$ Appea&s, 3;( SCRA (3(8.cra&a"+
T!e a$ore1<'oted cases, cited .# L'cia to .o&ster t!e p&ea $or t!e contin'ance o$ !er case, $ind no
app&ication in t!e case at .enc!.
Indeed, t!e Co'rt reco%niJes t!e doctrine on ad!erence o$ 5'risdiction. L'cia, !o"ever, ,'st .e re,inded
t!at s'c! princip&e is not "it!o't e9ceptions. It is "e&& to <'ote t!e r'&in% o$ t!e CA on t!is ,atter,
t!'sc!anro.&es virt'a& &a" &i.rar#
T!is Co'rt is not 'n,ind$'& nor 'na"are o$ t!e doctrine on t!e ad!erence o$ 5'risdiction. Ho"ever, t!e r'&e
on ad!erence o$ 5'risdiction is not a.so&'te and !as e9ceptions. One o$ t!e e9ceptions is t!at "!en t!e
c!an%e in 5'risdiction is c'rative in c!aracter 7Garcia v. MartineJ, *2 SCRA (() E)*-*FD Ca&deron, Sr. v.
Co'rt o$ Appea&s, )22 SCRA 40* E)*+2FD At&as Ferti&iJer Corporation v. Navarro, )4* SCRA 4(3 E)*+-FD
A.ad v. RTC o$ Mani&a, 6r. L&&, )04 SCRA ;;4 E)*+-Fcar &a"8.
For s're, Section (2, R.A. -;0( is c'rative in c!aracter "!en it dec&ared t!at t!e &i<'idation co'rt s!a&&
!ave 5'risdiction in t!e sa,e proceedin%s to assist in t!e ad5'dication o$ t!e disp'ted c&ai,s a%ainst t!e
6an:. T!e interpretation o$ t!is Section 7$or,er&# Section 3*, R.A. 3;08 .eco,es ,ore o.vio's in t!e &i%!t
o$ its intent. In Mana&o v. Co'rt o$ Appea&s 7(;; SCRA -03, E322)F8, t!e S'pre,e Co'rt sa#sc!anro.&es
virt'a& &a" &i.rar#
999 T!e re<'ire,ent t!at a&& c&ai,s a%ainst t!e .an: .e p'rs'ed in t!e &i<'idation proceedin%s $i&ed .# t!e
Centra& 6an: is intended to prevent ,'&tip&icit# o$ actions a%ainst t!e inso&vent .an: and desi%ned to
esta.&is! d'e process and order&iness in t!e &i<'idation o$ t!e .an:, to o.viate t!e pro&i$eration o$
&iti%ations and to avoid in5'stice and ar.itrariness 7citin% On% v. CA, 30( SCRA )20 E)**;F8. T!e
&a",a:in% .od# conte,p&ated t!at $or convenience, on&# one co'rt, i$ possi.&e, s!o'&d pass 'pon t!e
c&ai,s a%ainst t!e inso&vent .an: and t!at t!e &i<'idation co'rt s!o'&d assist t!e S'perintendents o$ 6an:s
and re%'&ate !is operations 7citin% Centra& 6an: o$ t!e P!i&ippines, et a&. v. CA, et a&., );( SCRA 4+3
E)*++F8.cra&a"*
As re%ards L'ciaQs contention t!at 5'risdiction a&read# attac!ed "!en Civi& Case No. IR1()3+ "as $i&ed
"it!, and 5'risdiction o.tained .#, t!e RTC1Iri%a prior to t!e $i&in% o$ t!e &i<'idation case .e$ore t!e RTC1
Ma:ati, !er stance $ai&s to pers'ade t!is Co'rt. In re$'tin% t!is assertion, respondent P@IC cited t!e case
o$ Lipana v. @eve&op,ent 6an: o$ RiJa&cra&a")2 "!ere it "as !e&d t!at t!e ti,e o$ t!e $i&in% o$ t!e
co,p&aint is i,,ateria&, viJc!anro.&es virt'a& &a" &i.rar#
It is t!e contention o$ petitioners, !o"ever, t!at t!e p&acin% 'nder receivers!ip o$ Respondent 6an: &on%
a$ter t!e $i&in% o$ t!e co,p&aint re,oved it $ro, t!e doctrine in t!e said Mor$e Case.
T!is contention is 'ntena.&e. T!e ti,e o$ t!e $i&in% o$ t!e co,p&aint is i,,ateria&. It is t!e e9ec'tion t!at
"i&& o.vio's&# pre5'dice t!e ot!er depositors and creditors. Moreover, as stated in t!e said Mor$e case, t!e
e$$ect o$ t!e 5'd%,ent is on&# to $i9 t!e a,o'nt o$ t!e de.t, and not to %ive priorit# over ot!er depositors
and creditors.
T!e cited Mor$e casecra&a")) !e&d t!at Qa$ter t!e Monetar# 6oard !as dec&ared t!at a .an: is inso&vent
and !as ordered it to cease operations, t!e 6oard .eco,es t!e tr'stee o$ its assets $or t!e e<'a& .ene$it
o$ a&& t!e creditors, inc&'din% depositors. T!e assets o$ t!e inso&vent .an:in% instit'tion are !e&d in tr'st $or
t!e e<'a& .ene$it o$ a&& creditors, and a$ter its inso&venc#, one cannot o.tain an advanta%e or a pre$erence
over anot!er .# an attac!,ent, e9ec'tion or ot!er"ise.Q
T!'s, to a&&o" L'ciaQs case to proceed independent&# o$ t!e &i<'idation case, a possi.i&it# o$ $avora.&e
5'd%,ent and e9ec'tion t!ereo$ a%ainst t!e assets o$ R6CI "o'&d not on&# pre5'dice t!e ot!er creditors
and depositors .'t "o'&d de$eat t!e ver# p'rpose $or "!ic! a &i<'idation co'rt "as constit'ted as "e&&.
Anent t!e second iss'e, L'cia $a'&ts t!e CA in directin% t!e conso&idation o$ Civi& Case No. IR1()3+ "it!
Specia& Proceedin%s No. M103*2. T!e CA co,,itted no error. L'ciaQs co,p&aint invo&vin% ann'&,ent o$
deed o$ ,ort%a%e and da,a%es $a&&s "it!in t!e p'rvie" o$ a disp'ted c&ai, in conte,p&ation o$ Section (2
o$ R.A. -;0( 7T!e Ne" Centra& 6an: Act8. T!e 5'risdiction s!o'&d .e &od%ed "it! t!e &i<'idation co'rt.
Section (2 providesc!anro.&es virt'a& &a" &i.rar#
Sec. (2. Proceedin%s in Receivers!ip and Li<'idation. 1 =!enever, 'pon report o$ t!e !ead o$ t!e
s'pervisin% or e9a,inin% depart,ent, t!e Monetar# 6oard $inds t!at a .an: or <'asi1.an:c!anro.&es
virt'a& &a" &i.rar#
7a8 is 'na.&e to pa# its &ia.i&ities as t!e# .eco,e d'e in t!e ordinar# co'rse o$ .'siness Provided, T!at
t!is s!a&& not inc&'de ina.i&it# to pa# ca'sed .# e9traordinar# de,ands ind'ced .# $inancia& panic in t!e
.an:in% co,,'nit#Dc!anro.&esvirt'a&a"&i.rar#
7.8 !as ins'$$icient rea&iJa.&e assets, as deter,ined .# t!e 6an%:o Sentra&, to ,eet its &ia.i&itiesD or
7c8 cannot contin'e in .'siness "it!o't invo&vin% pro.a.&e &osses to its depositors or creditorsD or
7d8 !as "i&$'&&# vio&ated a cease and desist order 'nder Section (- t!at !as .eco,e $ina&, invo&vin% acts or
transactions "!ic! a,o'nt to $ra'd or a dissipation o$ t!e assets o$ t!e instit'tionD in "!ic! cases, t!e
Monetar# 6oard ,a# s',,ari&# and "it!o't need $or prior !earin% $or.id t!e instit'tion $ro, doin%
.'siness in t!e P!i&ippines and desi%nate t!e P!i&ippine @eposit Ins'rance Corporation as receiver o$ t!e
.an:in% instit'tion.
For a <'asi1.an:, an# person o$ reco%niJed co,petence in .an:in% or $inance ,a# .e desi%nated as
receiver.
T!e receiver s!a&& i,,ediate&# %at!er and ta:e c!ar%e o$ a&& t!e assets and &ia.i&ities o$ t!e instit'tion,
ad,inister t!e sa,e $or t!e .ene$it o$ its creditors, and e9ercise t!e %enera& po"ers o$ a receiver 'nder
t!e Revised R'&es o$ Co'rt .'t s!a&& not, "it! t!e e9ception o$ ad,inistrative e9pendit'res, pa# or co,,it
an# act t!at "i&& invo&ve t!e trans$er or disposition o$ an# asset o$ t!e instit'tion Provided, T!at t!e
receiver ,a# deposit or p&ace t!e $'nds o$ t!e instit'tion in non1spec'&ative invest,ents. T!e receiver
s!a&& deter,ine as soon as possi.&e, .'t not &ater t!an ninet# 7*28 da#s $ro, ta:e over, "!et!er t!e
instit'tion ,a# .e re!a.i&itated or ot!er"ise p&aced in s'c! a condition t!at it ,a# .e per,itted to res',e
.'siness "it! sa$et# to its depositors and creditors and t!e %enera& p'.&ic Provided, T!at an#
deter,ination $or t!e res',ption o$ .'siness o$ t!e instit'tion s!a&& .e s'.5ect to prior approva& o$ t!e
Monetar# 6oard.
I$ t!e receiver deter,ines t!at t!e instit'tion cannot .e re!a.i&itated or per,itted to res',e .'siness in
accordance "it! t!e ne9t precedin% para%rap!, t!e Monetar# 6oard s!a&& noti$# in "ritin% t!e .oard o$
directors o$ its $indin%s and direct t!e receiver to proceed "it! t!e &i<'idation o$ t!e instit'tion. T!e
receiver s!a&&c!anro.&es virt'a& &a" &i.rar#
7)8 $i&e e9 parte "it! t!e proper re%iona& tria& co'rt, and "it!o't re<'ire,ent o$ prior notice or an# ot!er
action, a petition $or assistance in t!e &i<'idation o$ t!e instit'tion p'rs'ant to a &i<'idation p&an adopted .#
t!e P!i&ippine @eposit Ins'rance Corporation $or %enera& app&ication to a&& c&osed .an:s. In case o$ <'asi1
.an:s, t!e &i<'idation p&an s!a&& .e adopted .# t!e Monetar# 6oard. Upon ac<'irin% 5'risdiction, t!e co'rt
s!a&&, 'pon ,otion .# t!e receiver a$ter d'e notice, ad5'dicate disp'ted c&ai,s a%ainst t!e instit'tion,
assist t!e en$orce,ent o$ individ'a& &ia.i&ities o$ t!e stoc:!o&ders, directors and o$$icers, and decide on
ot!er iss'es as ,a# .e ,ateria& to i,p&e,ent t!e &i<'idation p&an adopted. T!e receiver s!a&& pa# t!e cost
o$ t!e proceedin%s $ro, t!e assets o$ t!e instit'tion.
738 convert t!e assets o$ t!e instit'tion to ,one#, dispose o$ t!e sa,e to creditors and ot!er parties, $or
t!e p'rpose o$ pa#in% t!e de.ts o$ s'c! instit'tion in accordance "it! t!e r'&es on conc'rrence and
pre$erence o$ credit 'nder t!e Civi& Code o$ t!e P!i&ippines and !e ,a#, in t!e na,e o$ t!e instit'tion, and
"it! t!e assistance o$ co'nse& as !e ,a# retain, instit'te s'c! actions as ,a# .e necessar# to co&&ect and
recover acco'nts and assets o$, or de$end an# action a%ainst, t!e instit'tion. T!e assets o$ an instit'tion
'nder receivers!ip or &i<'idation s!a&& .e dee,ed in c'stodia &e%is in t!e !ands o$ t!e receiver and s!a&&,
$ro, t!e ,o,ent t!e instit'tion "as p&aced 'nder s'c! receivers!ip or &i<'idation, .e e9e,pt $ro, an#
order o$ %arnis!,ent, &ev#, attac!,ent, or e9ec'tion. EE,p!asis s'pp&iedF cra&a" virt'a& &a" &i.rar#
9 9 9
Q@isp'ted c&ai,sQ re$ers to a&& c&ai,s, "!et!er t!e# .e a%ainst t!e assets o$ t!e inso&vent .an:, $or speci$ic
per$or,ance, .reac! o$ contract, da,a%es, or "!atever.cra&a")3 L'ciaQs action .ein% a c&ai, a%ainst
R6CI can proper&# .e conso&idated "it! t!e &i<'idation proceedin%s .e$ore t!e RTC1Ma:ati. A &i<'idation
proceedin% !as .een e9p&ained in t!e case o$ In Re Petition For Assistance in t!e Li<'idation o$ t!e R'ra&
6an: o$ 6ONO@ 76en%'et8, Inc. v. 6'rea' o$ Interna& Reven'e cra&a")( as $o&&o"sc!anro.&es virt'a& &a"
&i.rar#
A &i<'idation proceedin% is a sin%&e proceedin% "!ic! consists o$ a n',.er o$ cases proper&# c&assi$ied as
?c&ai,s.? It is .asica&&# a t"o1p!ased proceedin%. T!e $irst p!ase is concerned "it! t!e approva& and
disapprova& o$ c&ai,s. Upon t!e approva& o$ t!e petition see:in% t!e assistance o$ t!e proper co'rt in t!e
&i<'idation o$ a c&osed entit#, a&& ,one# c&ai,s a%ainst t!e .an: are re<'ired to .e $i&ed "it! t!e &i<'idation
co'rt. T!is p!ase ,a# end "it! t!e dec&aration .# t!e &i<'idation co'rt t!at t!e c&ai, is not proper or
"it!o't .asis. On t!e ot!er !and, it ,a# a&so end "it! t!e &i<'idation co'rt a&&o"in% t!e c&ai,. In t!e &atter
case, t!e c&ai, s!a&& .e c&assi$ied "!et!er it is ordinar# or pre$erred, and t!erea$ter inc&'ded Li<'idator. In
eit!er case, t!e order a&&o"in% or disa&&o"in% a partic'&ar c&ai, is $ina& order, and ,a# .e appea&ed .# t!e
part# a%%rieved t!ere.#.
T!e second p!ase invo&ves t!e approva& .# t!e Co'rt o$ t!e distri.'tion p&an prepared .# t!e d'&#
appointed &i<'idator. T!e distri.'tion p&an speci$ies in detai& t!e tota& a,o'nt avai&a.&e $or distri.'tion to
creditors "!ose c&ai, "ere ear&ier a&&o"ed. T!e Order $ina&&# disposes o$ t!e iss'e o$ !o" ,'c! propert#
is avai&a.&e $or disposa&. Moreover, it 's!ers in t!e $ina& p!ase o$ t!e &i<'idation proceedin% 1 pa#,ent o$
a&& a&&o"ed c&ai,s in accordance "it! t!e order o$ &e%a& priorit# and t!e approved distri.'tion p&an.
9 9 9
A &i<'idation proceedin% is co,,enced .# t!e $i&in% o$ a sin%&e petition .# t!e So&icitor Genera& "it! a
co'rt o$ co,petent 5'risdiction entit&ed, ?Petition $or Assistance in t!e Li<'idation o$ e.%., Paci$ic 6an:in%
Corporation.Q A&& c&ai,s a%ainst t!e inso&vent are re<'ired to .e $i&ed "it! t!e &i<'idation co'rt. A&t!o'%!
t!e c&ai,s are &iti%ated in t!e sa,e proceedin%, t!e treat,ent is individ'a&. Eac! c&ai, is !eard separate&#.
And t!e Order iss'ed re&ative to a partic'&ar c&ai, app&ies on&# to said c&ai,, &eavin% t!e ot!er c&ai,s
'na$$ected, as eac! c&ai, is considered separate and distinct $ro, t!e ot!ers. 9 9 9 EE,p!asis s'pp&ied.F
cra&a"
It is c&ear, t!ere$ore, t!at t!e &i<'idation co'rt !as 5'risdiction over a&& c&ai,s, inc&'din% t!at o$ L'cia a%ainst
t!e inso&vent .an:. As dec&ared in Miranda v. P!i&ippine @eposit Ins'rance Corporation,cra&a")4 re%'&ar
co'rts do not !ave 5'risdiction over actions $i&ed .# c&ai,ants a%ainst an inso&vent .an:, 'n&ess t!ere is a
c&ear s!o"in% t!at t!e action ta:en .# t!e 6SP, t!ro'%! t!e Monetar# 6oard, in t!e c&os're o$ $inancia&
instit'tions "as in e9cess o$ 5'risdiction, or "it! %rave a.'se o$ discretion. T!e sa,e is not o.tainin% in
t!is present case.
T!e po"er and a't!orit# o$ t!e Monetar# 6oard to c&ose .an:s and &i<'idate t!e, t!erea$ter "!en p'.&ic
interest so re<'ires is an e9ercise o$ t!e po&ice po"er o$ t!e State. Po&ice po"er, !o"ever, is s'.5ect to
5'dicia& in<'ir#. It ,a# not .e e9ercised ar.itrari&# or 'nreasona.&# and co'&d .e set aside i$ it is eit!er
capricio's, discri,inator#, "!i,sica&, ar.itrar#, 'n5'st, or is tanta,o'nt to a denia& o$ d'e process and
e<'a& protection c&a'ses o$ t!e Constit'tion.cra&a")0
In s',, t!is Co'rt !o&ds t!at t!e conso&idation is proper considerin% t!at t!e &i<'idation co'rt !as
5'risdiction over L'ciaQs action. It "o'&d .e ,ore in :eepin% "it! &a" and e<'it# i$ L'ciaQs case is
conso&idated "it! t!e &i<'idation case in order to e9peditio's&# deter,ine "!et!er s!e is entit&ed to
recover t!e propert# s'.5ect o$ ,ort%a%e $ro, R6CI and, i$ so, !o" ,'c! s!e is entit&ed to receive $ro,
t!e re,ainin% assets o$ t!e .an:.
=HEREFORE, t!e petition is @ENIE@.
SO OR@ERE@.
IIRGILIO O. GARCILLANO, Petitioner, v. THE HOUSE OF REPRESENTATIIES COMMITTEES ON
PU6LIC INFORMATION, PU6LIC OR@ER AN@ SAFETB, NATIONAL @EFENSE AN@ SECURITB,
INFORMATION AN@ COMMUNICATIONS TECHNOLOGB, and SUFFRAGE AN@ ELECTORAL
REFORMS, Respondents.
EG.R. NO. )-*3-0 @ece,.er 3(, 322+F
SANTIAGO CAIIER RANA@A and OS=AL@O @. AGCAOILI, Petitioners, v. THE SENATE OF THE
REPU6LIC OF THE PHILIPPINES, REPRESENTE@ 6B THE SENATE PRESI@ENT THE HONORA6LE
MANUEL IILLAR, Respondents.
MAC. LIN@SAB REH SAGGE, Petitioner1In1Intervention
AAUILINO A. PIMENTEL, CR., 6ENIGNO NOBNOB C. AAUINO, RO@OLFO G. 6IAcON, PANFILO M.
LACSON, LOREN 6. LEGAR@A, M.A. CAM6B A.S. MA@RIGAL, and ANTONIO F. TRILLANES,
Respondents1intervenors.
More t!an t!ree #ears a%o, tapes ostensi.&# containin% a "iretapped conversation p'rported&# .et"een
t!e President o$ t!e P!i&ippines and a !i%!1ran:in% o$$icia& o$ t!e Co,,ission on E&ections 7COMELEC8
s'r$aced. T!e# capt'red 'nprecedented p'.&ic attention and t!r'st t!e co'ntr# into a controvers# t!at
p&aced t!e &e%iti,ac# o$ t!e present ad,inistration on t!e &ine, and res'&ted in t!e near1co&&apse o$ t!e
Arro#o %overn,ent. T!e tapes, notorio's&# re$erred to as t!e ?He&&o Garci? tapes, a&&e%ed&# contained t!e
PresidentQs instr'ctions to COMELEC Co,,issioner Iir%i&io Garci&&ano to ,anip'&ate in !er $avor res'&ts
o$ t!e 3224 presidentia& e&ections. T!ese recordin%s "ere to .eco,e t!e s'.5ect o$ !eated &e%is&ative
!earin%s cond'cted separate&# .# co,,ittees o$ .ot! Ho'ses o$ Con%ress.)
In t!e Ho'se o$ Representatives 7Ho'se8, on C'ne +, 3220, t!en Minorit# F&oor Leader Francis G.
Esc'dero de&ivered a privi&e%e speec!, ?Ta&e o$ T"o Tapes,? and set in ,otion a con%ressiona&
investi%ation 5oint&# cond'cted .# t!e Co,,ittees on P'.&ic In$or,ation, P'.&ic Order and Sa$et#, Nationa&
@e$ense and Sec'rit#, In$or,ation and Co,,'nications Tec!no&o%#, and S'$$ra%e and E&ectora& Re$or,s
7respondent Ho'se Co,,ittees8. @'rin% t!e in<'ir#, severa& versions o$ t!e "iretapped conversation
e,er%ed. 6't on C'&# 0, 3220, Nationa& 6'rea' o$ Investi%ation 7N6I8 @irector Re#na&do =#coco, Att#.
A&an Pa%'ia and t!e &a"#er o$ $or,er N6I @ep't# @irector Sa,'e& On% s'.,itted to t!e respondent
Ho'se Co,,ittees seven a&&e%ed ?ori%ina&? tape recordin%s o$ t!e s'pposed t!ree1!o'r taped
conversation. A$ter pro&on%ed and i,passioned de.ate .# t!e co,,ittee ,e,.ers on t!e ad,issi.i&it#
and a't!enticit# o$ t!e recordin%s, t!e tapes "ere event'a&&# p&a#ed in t!e c!a,.ers o$ t!e Ho'se.3
On A'%'st (, 3220, t!e respondent Ho'se Co,,ittees decided to s'spend t!e !earin%s inde$inite&#.
Nevert!e&ess, t!e# decided to prepare co,,ittee reports .ased on t!e said recordin%s and t!e
testi,onies o$ t!e reso'rce persons.(
A&ar,ed .# t!ese deve&op,ents, petitioner Iir%i&io O. Garci&&ano 7Garci&&ano8 $i&ed "it! t!is Co'rt a Petition
$or Pro!i.ition and In5'nction, "it! Pra#er $or Te,porar# Restrainin% Order andOor =rit o$ Pre&i,inar#
In5'nction4 doc:eted as G.R. No. )-2((+. He pra#ed t!at t!e respondent Ho'se Co,,ittees .e
restrained $ro, 'sin% t!ese tape recordin%s o$ t!e ?i&&e%a&&# o.tained? "iretapped conversations in t!eir
co,,ittee reports and $or an# ot!er p'rpose. He $'rt!er i,p&ored t!at t!e said recordin%s and an#
re$erence t!ereto .e ordered stric:en o$$ t!e records o$ t!e in<'ir#, and t!e respondent Ho'se
Co,,ittees directed to desist $ro, $'rt!er 'sin% t!e recordin%s in an# o$ t!e Ho'se proceedin%s.0
=it!o't reac!in% its deno'e,ent, t!e Ho'se disc'ssion and de.ates on t!e ?Garci tapes? a.r'pt&#
stopped.
A$ter ,ore t!an t"o #ears o$ <'iescence, Senator Pan$i&o Lacson ro'sed t!e s&',.erin% iss'e "it! a
privi&e%e speec!, ?T!e Li%!t!o'se T!at 6ro'%!t @ar:ness.? In !is disco'rse, Senator Lacson pro,ised to
provide t!e p'.&ic ?t!e "!o&e 'nvarnis!ed tr't! 1 t!e "!atQs, "!enQs, "!ereQs, "!oQs and "!#Qs? o$ t!e
a&&e%ed "iretap, and so'%!t an in<'ir# into t!e perceived "i&&in%ness o$ te&eco,,'nications providers to
participate in ne$ario's "iretappin% activities.
On ,otion o$ Senator Francis Pan%i&inan, Senator LacsonQs speec! "as re$erred to t!e Senate Co,,ittee
on Nationa& @e$ense and Sec'rit#, c!aired .# Senator Rodo&$o 6iaJon, "!o !ad previo's&# $i&ed t"o .i&&s;
see:in% to re%'&ate t!e sa&e, p'rc!ase and 'se o$ "iretappin% e<'ip,ent and to pro!i.it t!e Ar,ed
Forces o$ t!e P!i&ippines 7AFP8 $ro, per$or,in% e&ectora& d'ties.-
In t!e SenateQs p&enar# session t!e $o&&o"in% da#, a &en%t!# de.ate ens'ed "!en Senator Ric!ard Gordon
aired !is concern on t!e possi.&e trans%ression o$ Rep'.&ic Act 7R.A.8 No. 4322+ i$ t!e .od# "ere to
cond'ct a &e%is&ative in<'ir# on t!e ,atter. On A'%'st 3+, 322-, Senator Miria, @e$ensor1Santia%o
de&ivered a privi&e%e speec!, artic'&atin% !er considered vie" t!at t!e Constit'tion a.so&'te&# .ans t!e
'se, possession, rep&a# or co,,'nication o$ t!e contents o$ t!e ?He&&o Garci? tapes. Ho"ever, s!e
reco,,ended a &e%is&ative investi%ation into t!e ro&e o$ t!e Inte&&i%ence Service o$ t!e AFP 7ISAFP8, t!e
P!i&ippine Nationa& Po&ice or ot!er %overn,ent entities in t!e a&&e%ed i&&e%a& "iretappin% o$ p'.&ic o$$icia&s.*
On Septe,.er ;, 322-, petitioners Santia%o Ranada and Os"a&do A%caoi&i, retired 5'stices o$ t!e Co'rt o$
Appea&s, $i&ed .e$ore t!is Co'rt a Petition $or Pro!i.ition "it! Pra#er $or t!e Iss'ance o$ a Te,porar#
Restrainin% Order andOor =rit o$ Pre&i,inar# In5'nction,)2 doc:eted as G.R. No. )-*3-0, see:in% to .ar
t!e Senate $ro, cond'ctin% its sc!ed'&ed &e%is&ative in<'ir#. T!e# ar%'ed in t!e ,ain t!at t!e intended
&e%is&ative in<'ir# vio&ates R.A. No. 4322 and Section (, Artic&e III o$ t!e Constit'tion.))
As t!e Co'rt did not iss'e an in5'nctive "rit, t!e Senate proceeded "it! its p'.&ic !earin%s on t!e ?He&&o
Garci? tapes on Septe,.er -,)3 )-)( and Octo.er ),)4 322-.
Intervenin% as respondents,)0 Senators A<'i&ino A. Pi,ente&, Cr., 6eni%no No#no# C. A<'ino, Rodo&$o G.
6iaJon, Pan$i&o M. Lacson, Loren 6. Le%arda, M.A. Ca,.# A.S. Madri%a& and Antonio F. Tri&&anes $i&ed
t!eir Co,,ent); on t!e petition on Septe,.er 30, 322-.
T!e Co'rt s'.se<'ent&# !eard t!e case on ora& ar%',ent.)-
On Octo.er 3;, 322-, Ma5. Lindsa# Re9 Sa%%e, a ,e,.er o$ t!e ISAFP and one o$ t!e reso'rce persons
s',,oned .# t!e Senate to appear and testi$# at its !earin%s, ,oved to intervene as petitioner in G.R.
No. )-*3-0.)+
On Nove,.er 32, 322-, t!e Co'rt reso&ved to conso&idate G.R. NOS. )-2((+ and )-*3-0.)*
It ,a# .e noted t!at "!i&e .ot! petitions invo&ve t!e ?He&&o Garci? recordin%s, t!e# !ave di$$erent
o.5ectivesGt!e $irst is poised at preventin% t!e p&a#in% o$ t!e tapes in t!e Ho'se and t!eir s'.se<'ent
inc&'sion in t!e co,,ittee reports, and t!e second see:s to pro!i.it and stop t!e cond'ct o$ t!e Senate
in<'ir# on t!e "iretapped conversation.
T!e Co'rt dis,isses t!e $irst petition, G.R. No. )-2((+, and %rants t!e second, G.R. No. )-*3-0.
1 I 1
6e$ore de&vin% into t!e ,erits o$ t!e case, t!e Co'rt s!a&& $irst reso&ve t!e iss'e on t!e partiesQ standin%,
ar%'ed at &en%t! in t!eir p&eadin%s.
In To&entino v. COMELEC,32 "e e9p&ained t!at ?Q E&Fe%a& standin%Q or &oc's standi re$ers to a persona& and
s'.stantia& interest in a case s'c! t!at t!e part# !as s'stained or "i&& s'stain direct in5'r# .eca'se o$ t!e
c!a&&en%ed %overn,enta& act 9 9 9,? t!'s,
%enera&&#, a part# "i&& .e a&&o"ed to &iti%ate on&# "!en 7)8 !e can s!o" t!at !e !as persona&&# s'$$ered
so,e act'a& or t!reatened in5'r# .eca'se o$ t!e a&&e%ed&# i&&e%a& cond'ct o$ t!e %overn,entD 738 t!e in5'r#
is $air&# tracea.&e to t!e c!a&&en%ed actionD and 7(8 t!e in5'r# is &i:e&# to .e redressed .# a $avora.&e
action.3)
T!e %ist o$ t!e <'estion o$ standin% is "!et!er a part# !as ?a&&e%ed s'c! a persona& sta:e in t!e o'tco,e
o$ t!e controvers# as to ass're t!at concrete adverseness "!ic! s!arpens t!e presentation o$ iss'es
'pon "!ic! t!e co'rt so &ar%e&# depends $or i&&',ination o$ di$$ic'&t constit'tiona& <'estions.?33
Ho"ever, considerin% t!at &oc's standi is a ,ere proced'ra& tec!nica&it#, t!e Co'rt, in recent cases, !as
re&a9ed t!e strin%ent direct in5'r# test. @avid v. Macapa%a&1Arro#o3( artic'&ates t!at a ?&i.era& po&ic# !as
.een o.served, a&&o"in% ordinar# citiJens, ,e,.ers o$ Con%ress, and civic or%aniJations to prosec'te
actions invo&vin% t!e constit'tiona&it# or va&idit# o$ &a"s, re%'&ations and r'&in%s.?34 T!e $air&# recent
C!aveJ v. GonJa&es30 even per,itted a non1,e,.er o$ t!e .roast ,edia, "!o $ai&ed to a&&e%e a persona&
sta:e in t!e o'tco,e o$ t!e controvers#, to c!a&&en%e t!e acts o$ t!e Secretar# o$ C'stice and t!e Nationa&
Te&eco,,'nications Co,,ission. T!e ,a5orit#, in t!e said case, ec!oed t!e c'rrent po&ic# t!at ?t!is
Co'rt !as repeated&# and consistent&# re$'sed to "ie&d proced'ra& .arriers as i,pedi,ents to its
addressin% and reso&vin% serio's &e%a& <'estions t!at %reat&# i,pact on p'.&ic interest, in :eepin% "it! t!e
Co'rtQs d't# 'nder t!e )*+- Constit'tion to deter,ine "!et!er or not ot!er .ranc!es o$ %overn,ent !ave
:ept t!e,se&ves "it!in t!e &i,its o$ t!e Constit'tion and t!e &a"s, and t!at t!e# !ave not a.'sed t!e
discretion %iven to t!e,.?3;
In G.R. No. )-2((+, petitioner Garci&&ano 5'sti$ies !is standin% to initiate t!e petition .# a&&e%in% t!at !e is
t!e person a&&'ded to in t!e ?He&&o Garci? tapes. F'rt!er, !is "as p'.&ic&# identi$ied .# t!e ,e,.ers o$ t!e
respondent co,,ittees as one o$ t!e voices in t!e recordin%s.3- O.vio's&#, t!ere$ore, petitioner
Garci&&ano stands to .e direct&# in5'red .# t!e Ho'se co,,itteesQ actions and c!ar%es o$ e&ectora& $ra'd.
T!e Co'rt reco%niJes !is standin% to instit'te t!e petition $or pro!i.ition.
In G.R. No. )-*3-0, petitioners Ranada and A%caoi&i 5'sti$# t!eir standin% .# a&&e%in% t!at t!e# are
concerned citiJens, ta9pa#ers, and ,e,.ers o$ t!e I6P. T!e# are o$ t!e $ir, conviction t!at an# atte,pt
to 'se t!e ?He&&o Garci? tapes "i&& $'rt!er divide t!e co'ntr#. T!e# "is! to see t!e &e%a& and proper 'se o$
p'.&ic $'nds t!at "i&& necessari&# .e de$ra#ed in t!e ens'in% p'.&ic !earin%s. T!e# are "orried .# t!e
contin'o's vio&ation o$ t!e &a"s and individ'a& ri%!ts, and t!e .&atant atte,pt to a.'se constit'tiona&
processes t!ro'%! t!e cond'ct o$ &e%is&ative in<'iries p'rported&# in aid o$ &e%is&ation.3+
Intervenor Sa%%e a&&e%es vio&ation o$ !is ri%!t to d'e process considerin% t!at !e is s',,oned to attend
t!e Senate !earin%s "it!o't .ein% apprised not on&# o$ !is ri%!ts t!erein t!ro'%! t!e p'.&ication o$ t!e
Senate R'&es o$ Proced're Governin% In<'iries in Aid o$ Le%is&ation, .'t a&so o$ t!e intended &e%is&ation
"!ic! 'nderpins t!e investi%ation. He $'rt!er intervenes as a ta9pa#er .e"ai&in% t!e 'se&ess and "aste$'&
e9pendit're o$ p'.&ic $'nds invo&ved in t!e cond'ct o$ t!e <'estioned !earin%s.3*
Given t!at petitioners Ranada and A%caoi&i a&&e%e an interest in t!e e9ec'tion o$ t!e &a"s and t!at
intervenor Sa%%e asserts !is constit'tiona& ri%!t to d'e process,(2 t!e# satis$# t!e re<'isite persona&
sta:e in t!e o'tco,e o$ t!e controvers# .# ,ere&# .ein% citiJens o$ t!e Rep'.&ic.
Fo&&o"in% t!e Co'rtQs r'&in% in Francisco, Cr. v. T!e Ho'se o$ Representatives,() "e $ind s'$$icient
petitioners RanadaQs and A%caoi&iQs and intervenor Sa%%eQs a&&e%ation t!at t!e contin'o's cond'ct .# t!e
Senate o$ t!e <'estioned &e%is&ative in<'ir# "i&& necessari&# invo&ve t!e e9pendit're o$ p'.&ic $'nds.(3 It
s!o'&d .e noted t!at in Francisco, ri%!ts persona& to t!en C!ie$ C'stice Hi&ario G. @avide, Cr. !ad .een
in5'red .# t!e a&&e%ed 'nconstit'tiona& acts o$ t!e Ho'se o$ Representatives, #et t!e Co'rt %ranted
standin% to t!e petitioners t!erein $or, as in t!is case, t!e# invaria.&# invo:ed t!e vindication o$ t!eir o"n
ri%!tsGas ta9pa#ers, ,e,.ers o$ Con%ress, citiJens, individ'a&&# or in a c&ass s'it, and ,e,.ers o$ t!e
.ar and o$ t!e &e%a& pro$essionG"!ic! "ere a&so s'pposed&# vio&ated .# t!e t!erein assai&ed
'nconstit'tiona& acts.((
Li:e"ise, a readin% o$ t!e petition in G.R. No. )-*3-0 s!o"s t!at t!e petitioners and intervenor Sa%%e
advance constit'tiona& iss'es "!ic! deserve t!e attention o$ t!is Co'rt in vie" o$ t!eir serio'sness,
nove&t# and "ei%!t as precedents. T!e iss'es are o$ transcendenta& and para,o'nt i,portance not on&#
to t!e p'.&ic .'t a&so to t!e 6enc! and t!e 6ar, and s!o'&d .e reso&ved $or t!e %'idance o$ a&&.(4
T!'s, in t!e e9ercise o$ its so'nd discretion and %iven t!e &i.era& attit'de it !as s!o"n in prior cases
c&i,a9in% in t!e ,ore recent case o$ C!aveJ, t!e Co'rt reco%niJes t!e &e%a& standin% o$ petitioners
Ranada and A%caoi&i and intervenor Sa%%e.
1 II 1
T!e Co'rt, !o"ever, dis,isses G.R. No. )-2((+ $or .ein% ,oot and acade,ic. Repeated&# stressed in
o'r prior decisions is t!e princip&e t!at t!e e9ercise .# t!is Co'rt o$ 5'dicia& po"er is &i,ited to t!e
deter,ination and reso&'tion o$ act'a& cases and controversies.(0 6# act'a& cases, "e ,ean e9istin%
con$&icts appropriate or ripe $or 5'dicia& deter,ination, not con5ect'ra& or anticipator#, $or ot!er"ise t!e
decision o$ t!e Co'rt "i&& a,o'nt to an advisor# opinion. T!e po"er o$ 5'dicia& in<'ir# does not e9tend to
!#pot!etica& <'estions .eca'se an# atte,pt at a.straction co'&d on&# &ead to dia&ectics and .arren &e%a&
<'estions and to steri&e conc&'sions 'nre&ated to act'a&ities.(; Neit!er "i&& t!e Co'rt deter,ine a ,oot
<'estion in a case in "!ic! no practica& re&ie$ can .e %ranted. A case .eco,es ,oot "!en its p'rpose !as
.eco,e sta&e.(- It is 'nnecessar# to ind'&%e in acade,ic disc'ssion o$ a case presentin% a ,oot <'estion
as a 5'd%,ent t!ereon cannot !ave an# practica& &e%a& e$$ect or, in t!e nat're o$ t!in%s, cannot .e
en$orced.(+
In G.R. No. )-2((+, petitioner Garci&&ano i,p&ores $ro, t!e Co'rt, as a$ore,entioned, t!e iss'ance o$ an
in5'nctive "rit to pro!i.it t!e respondent Ho'se Co,,ittees $ro, p&a#in% t!e tape recordin%s and $ro,
inc&'din% t!e sa,e in t!eir co,,ittee report. He &i:e"ise pra#s t!at t!e said tapes .e stric:en o$$ t!e
records o$ t!e Ho'se proceedin%s. 6't t!e Co'rt notes t!at t!e recordin%s "ere a&read# p&a#ed in t!e
Ho'se and !eard .# its ,e,.ers.(* T!ere is a&so t!e "ide&# p'.&iciJed $act t!at t!e co,,ittee reports on
t!e ?He&&o Garci? in<'ir# "ere co,p&eted and s'.,itted to t!e Ho'se in p&enar# .# t!e respondent
co,,ittees.42 Havin% .een overta:en .# t!ese events, t!e Garci&&ano petition !as to .e dis,issed $or
.ein% ,oot and acade,ic. A$ter a&&, pro!i.ition is a preventive re,ed# to restrain t!e doin% o$ an act a.o't
to .e done, and not intended to provide a re,ed# $or an act a&read# acco,p&is!ed.4)
1 III 1
As to t!e petition in G.R. No. )-*3-0, t!e Co'rt %rants t!e sa,e. T!e Senate cannot .e a&&o"ed to
contin'e "it! t!e cond'ct o$ t!e <'estioned &e%is&ative in<'ir# "it!o't d'&# p'.&is!ed r'&es o$ proced're, in
c&ear dero%ation o$ t!e constit'tiona& re<'ire,ent.
Section 3), Artic&e II o$ t!e )*+- Constit'tion e9p&icit&# provides t!at ?EtF!e Senate or t!e Ho'se o$
Representatives, or an# o$ its respective co,,ittees ,a# cond'ct in<'iries in aid o$ &e%is&ation in
accordance "it! its d'&# p'.&is!ed r'&es o$ proced're.? T!e re<'isite o$ p'.&ication o$ t!e r'&es is intended
to satis$# t!e .asic re<'ire,ents o$ d'e process.43 P'.&ication is indeed i,perative, $or it "i&& .e t!e
!ei%!t o$ in5'stice to p'nis! or ot!er"ise .'rden a citiJen $or t!e trans%ression o$ a &a" or r'&e o$ "!ic! !e
!ad no notice "!atsoever, not even a constr'ctive one.4( =!at constit'tes p'.&ication is set $ort! in
Artic&e 3 o$ t!e Civi& Code, "!ic! provides t!at ?E&Fa"s s!a&& ta:e e$$ect a$ter )0 da#s $o&&o"in% t!e
co,p&etion o$ t!eir p'.&ication eit!er in t!e O$$icia& GaJette, or in a ne"spaper o$ %enera& circ'&ation in t!e
P!i&ippines.?44
T!e respondents in G.R. No. )-*3-0 ad,it in t!eir p&eadin%s and even on ora& ar%',ent t!at t!e Senate
R'&es o$ Proced're Governin% In<'iries in Aid o$ Le%is&ation !ad .een p'.&is!ed in ne"spapers o$ %enera&
circ'&ation on&# in )**0 and in 322;.40 =it! respect to t!e present Senate o$ t!e )4t! Con%ress, !o"ever,
o$ "!ic! t!e ter, o$ !a&$ o$ its ,e,.ers co,,enced on C'ne (2, 322-, no e$$ort "as 'nderta:en $or t!e
p'.&ication o$ t!ese r'&es "!en t!e# $irst opened t!eir session.
Recent&#, t!e Co'rt !ad occasion to r'&e on t!is ver# sa,e <'estion. In Neri v. Senate Co,,ittee on
Acco'nta.i&it# o$ P'.&ic O$$icers and Investi%ations,4; "e said
Fo'rt!, "e $ind ,erit in t!e ar%',ent o$ t!e OSG t!at respondent Co,,ittees &i:e"ise vio&ated Section 3)
o$ Artic&e II o$ t!e Constit'tion, re<'irin% t!at t!e in<'ir# .e in accordance "it! t!e ?d'&# p'.&is!ed r'&es o$
proced're.? =e <'ote t!e OSGQs e9p&anation
T!e p!rase ?d'&# p'.&is!ed r'&es o$ proced're? re<'ires t!e Senate o$ ever# Con%ress to p'.&is! its r'&es
o$ proced're %overnin% in<'iries in aid o$ &e%is&ation .eca'se ever# Senate is distinct $ro, t!e one .e$ore
it or a$ter it. Since Senatoria& e&ections are !e&d ever# t!ree 7(8 #ears $or one1!a&$ o$ t!e SenateQs
,e,.ers!ip, t!e co,position o$ t!e Senate a&so c!an%es .# t!e end o$ eac! ter,. Eac! Senate ,a# t!'s
enact a di$$erent set o$ r'&es as it ,a# dee, $it. Not !avin% p'.&is!ed its R'&es o$ Proced're, t!e s'.5ect
!earin%s in aid o$ &e%is&ation cond'cted .# t!e )4t! Senate, are t!ere$ore, proced'ra&&# in$ir,.
C'stice Antonio T. Carpio, in !is @issentin% and Conc'rrin% Opinion, rein$orces t!is r'&in% "it! t!e
$o&&o"in% rationa&iJation
T!e present Senate 'nder t!e )*+- Constit'tion is no &on%er a contin'in% &e%is&ative .od#. T!e present
Senate !as t"ent#1$o'r ,e,.ers, t"e&ve o$ "!o, are e&ected ever# t!ree #ears $or a ter, o$ si9 #ears
eac!. T!'s, t!e ter, o$ t"e&ve Senators e9pires ever# t!ree #ears, &eavin% &ess t!an a ,a5orit# o$
Senators to contin'e into t!e ne9t Con%ress. T!e )*+- Constit'tion, &i:e t!e )*(0 Constit'tion, re<'ires a
,a5orit# o$ Senators to ?constit'te a <'or', to do .'siness.? App&#in% t!e sa,e reasonin% in Arna'&t v.
NaJareno, t!e Senate 'nder t!e )*+- Constit'tion is not a contin'in% .od# .eca'se &ess t!an ,a5orit# o$
t!e Senators contin'e into t!e ne9t Con%ress. T!e conse<'ence is t!at t!e R'&es o$ Proced're ,'st .e
rep'.&is!ed .# t!e Senate a$ter ever# e9pir# o$ t!e ter, o$ t"e&ve Senators.4-
T!e s'.5ect "as e9p&ained "it! %reater &'cidit# in o'r Reso&'tion4+ 7On t!e Motion $or Reconsideration8 in
t!e sa,e case, viJ.
On t!e nat're o$ t!e Senate as a ?contin'in% .od#,? t!is Co'rt sees $it to iss'e a c&ari$ication. Certain&#,
t!ere is no de.ate t!at t!e Senate as an instit'tion is ?contin'in%,? as it is not disso&ved as an entit# "it!
eac! nationa& e&ection or c!an%e in t!e co,position o$ its ,e,.ers. Ho"ever, in t!e cond'ct o$ its da#1to1
da# .'siness t!e Senate o$ eac! Con%ress acts separate&# and independent&# o$ t!e Senate o$ t!e
Con%ress .e$ore it. T!e R'&es o$ t!e Senate itse&$ con$ir,s t!is "!en it states
RULE HLII
UNFINISHE@ 6USINESS
SEC. )3(. Un$inis!ed .'siness at t!e end o$ t!e session s!a&& .e ta:en 'p at t!e ne9t session in t!e sa,e
stat's.
A&& pendin% ,atters and proceedin%s s!a&& ter,inate 'pon t!e e9piration o$ one 7)8 Con%ress, .'t ,a# .e
ta:en .# t!e s'cceedin% Con%ress as i$ present $or t!e $irst ti,e.
Undenia.&# $ro, t!e $ore%oin%, a&& pendin% ,atters and proceedin%s, i.e., 'npassed .i&&s and even
&e%is&ative investi%ations, o$ t!e Senate o$ a partic'&ar Con%ress are considered ter,inated 'pon t!e
e9piration o$ t!at Con%ress and it is ,ere&# optiona& on t!e Senate o$ t!e s'cceedin% Con%ress to ta:e 'p
s'c! 'n$inis!ed ,atters, not in t!e sa,e stat's, .'t as i$ presented $or t!e $irst ti,e. T!e &o%ic and
practica&it# o$ s'c! a r'&e is readi&# apparent considerin% t!at t!e Senate o$ t!e s'cceedin% Con%ress
7"!ic! "i&& t#pica&&# !ave a di$$erent co,position as t!at o$ t!e previo's Con%ress8 s!o'&d not .e .o'nd .#
t!e acts and de&i.erations o$ t!e Senate o$ "!ic! t!e# !ad no part. I$ t!e Senate is a contin'in% .od# even
"it! respect to t!e cond'ct o$ its .'siness, t!en pendin% ,atters "i&& not .e dee,ed ter,inated "it! t!e
e9piration o$ one Con%ress .'t "i&&, as a ,atter o$ co'rse, contin'e into t!e ne9t Con%ress "it! t!e sa,e
stat's.
T!is dic!oto,# o$ t!e contin'it# o$ t!e Senate as an instit'tion and o$ t!e opposite nat're o$ t!e cond'ct
o$ its .'siness is re$&ected in its R'&es. T!e R'&es o$ t!e Senate 7i.e. t!e SenateQs ,ain r'&es o$ proced're8
states
RULE LI
AMEN@MENTS TO, OR REIISIONS OF, THE RULES
SEC. )(;. At t!e start o$ eac! session in "!ic! t!e Senators e&ected in t!e precedin% e&ections s!a&& .e%in
t!eir ter, o$ o$$ice, t!e President ,a# endorse t!e R'&es to t!e appropriate co,,ittee $or a,end,ent or
revision.
T!e R'&es ,a# a&so .e a,ended .# ,eans o$ a ,otion "!ic! s!o'&d .e presented at &east one da#
.e$ore its consideration, and t!e vote o$ t!e ,a5orit# o$ t!e Senators present in t!e session s!a&& .e
re<'ired $or its approva&.
RULE LII
@ATE OF TANING EFFECT
SEC. )(-. T!ese R'&es s!a&& ta:e e$$ect on t!e date o$ t!eir adoption and s!a&& re,ain in $orce 'nti& t!e#
are a,ended or repea&ed.
Section )(; o$ t!e Senate R'&es <'oted a.ove ta:es into acco'nt t!e ne" co,position o$ t!e Senate a$ter
an e&ection and t!e possi.i&it# o$ t!e a,end,ent or revision o$ t!e R'&es at t!e start o$ eac! session in
"!ic! t!e ne"&# e&ected Senators s!a&& .e%in t!eir ter,.
Ho"ever, it is evident t!at t!e Senate !as deter,ined t!at its ,ain r'&es are intended to .e va&id $ro, t!e
date o$ t!eir adoption 'nti& t!e# are a,ended or repea&ed. S'c! &an%'a%e is conspic'o's&# a.sent $ro,
t!e R'&es. T!e R'&es si,p&# state ?7t8!ese R'&es s!a&& ta:e e$$ect seven 7-8 da#s a$ter p'.&ication in t"o
738 ne"spapers o$ %enera& circ'&ation.? T!e &atter does not e9p&icit&# provide $or t!e contin'ed e$$ectivit# o$
s'c! r'&es 'nti& t!e# are a,ended or repea&ed. In vie" o$ t!e di$$erence in t!e &an%'a%e o$ t!e t"o sets o$
Senate r'&es, it cannot .e pres',ed t!at t!e R'&es 7on &e%is&ative in<'iries8 "o'&d contin'e into t!e ne9t
Con%ress. T!e Senate o$ t!e ne9t Con%ress ,a# easi&# adopt di$$erent r'&es $or its &e%is&ative in<'iries
"!ic! co,e "it!in t!e r'&e on 'n$inis!ed .'siness.
T!e &an%'a%e o$ Section 3), Artic&e II o$ t!e Constit'tion re<'irin% t!at t!e in<'ir# .e cond'cted in
accordance "it! t!e d'&# p'.&is!ed r'&es o$ proced're is cate%orica&. It is inc',.ent 'pon t!e Senate to
p'.&is! t!e r'&es $or its &e%is&ative in<'iries in eac! Con%ress or ot!er"ise ,a:e t!e p'.&is!ed r'&es
c&ear&# state t!at t!e sa,e s!a&& .e e$$ective in s'.se<'ent Con%resses or 'nti& t!e# are a,ended or
repea&ed to s'$$icient&# p't p'.&ic on notice.
I$ it "as t!e intention o$ t!e Senate $or its present r'&es on &e%is&ative in<'iries to .e e$$ective even in t!e
ne9t Con%ress, it co'&d !ave easi&# adopted t!e sa,e &an%'a%e it !ad 'sed in its ,ain r'&es re%ardin%
e$$ectivit#.
Respondents 5'sti$# t!eir non1o.servance o$ t!e constit'tiona&&# ,andated p'.&ication .# ar%'in% t!at t!e
r'&es !ave never .een a,ended since )**0 and, despite t!at, t!e# are p'.&is!ed in .oo:&et $or, avai&a.&e
to an#one $or $ree, and accessi.&e to t!e p'.&ic at t!e SenateQs internet "e. pa%e.4*
T!e Co'rt does not a%ree. T!e a.sence o$ an# a,end,ent to t!e r'&es cannot 5'sti$# t!e SenateQs
de$iance o$ t!e c&ear and 'na,.i%'o's &an%'a%e o$ Section 3), Artic&e II o$ t!e Constit'tion. T!e or%anic
&a" instr'cts, "it!o't ,ore, t!at t!e Senate or its co,,ittees ,a# cond'ct in<'iries in aid o$ &e%is&ation
on&# in accordance "it! d'&# p'.&is!ed r'&es o$ proced're, and does not ,a:e an# distinction "!et!er or
not t!ese r'&es !ave 'nder%one a,end,ents or revision. T!e constit'tiona& ,andate to p'.&is! t!e said
r'&es prevai&s over an# c'sto,, practice or tradition $o&&o"ed .# t!e Senate.
C'stice CarpioQs response to t!e sa,e ar%',ent raised .# t!e respondents is i&&',inatin%
T!e p'.&ication o$ t!e R'&es o$ Proced're in t!e "e.site o$ t!e Senate, or in pa,p!&et $or, avai&a.&e at
t!e Senate, is not s'$$icient 'nder t!e TaLada v. T'vera r'&in% "!ic! re<'ires p'.&ication eit!er in t!e
O$$icia& GaJette or in a ne"spaper o$ %enera& circ'&ation. T!e R'&es o$ Proced're even provide t!at t!e
r'&es ?s!a&& ta:e e$$ect seven 7-8 da#s a$ter p'.&ication in t"o 738 ne"spapers o$ %enera& circ'&ation,?
prec&'din% an# ot!er $or, o$ p'.&ication. P'.&ication in accordance "it! TaLada is ,andator# to co,p&#
"it! t!e d'e process re<'ire,ent .eca'se t!e R'&es o$ Proced're p't a personQs &i.ert# at ris:. A person
"!o vio&ates t!e R'&es o$ Proced're co'&d .e arrested and detained .# t!e Senate.
T!e invocation .# t!e respondents o$ t!e provisions o$ R.A. No. +-*3,02 ot!er"ise :no"n as t!e
E&ectronic Co,,erce Act o$ 3222, to s'pport t!eir c&ai, o$ va&id p'.&ication t!ro'%! t!e internet is a&& t!e
,ore incorrect. R.A. +-*3 considers an e&ectronic data ,essa%e or an e&ectronic doc',ent as t!e
$'nctiona& e<'iva&ent o$ a "ritten doc',ent on&# $or evidentiar# p'rposes.0) In ot!er "ords, t!e &a"
,ere&# reco%niJes t!e ad,issi.i&it# in evidence 7$or t!eir .ein% t!e ori%ina&8 o$ e&ectronic data ,essa%es
andOor e&ectronic doc',ents.03 It does not ,a:e t!e internet a ,edi', $or p'.&is!in% &a"s, r'&es and
re%'&ations.
Given t!is disc'ssion, t!e respondent Senate Co,,ittees, t!ere$ore, co'&d not, in vio&ation o$ t!e
Constit'tion, 'se its 'np'.&is!ed r'&es in t!e &e%is&ative in<'ir# s'.5ect o$ t!ese conso&idated cases. T!e
cond'ct o$ in<'iries in aid o$ &e%is&ation .# t!e Senate !as to .e de$erred 'nti& it s!a&& !ave ca'sed t!e
p'.&ication o$ t!e r'&es, .eca'se it can do so on&# ?in accordance "it! its d'&# p'.&is!ed r'&es o$
proced're.?
Ier# recent&#, t!e Senate ca'sed t!e p'.&ication o$ t!e Senate R'&es o$ Proced're Governin% In<'iries in
Aid o$ Le%is&ation in t!e Octo.er (), 322+ iss'es o$ Mani&a 6'&&etin and Ma&a#a. =!i&e "e ta:e 5'dicia&
notice o$ t!is $act, t!e recent p'.&ication does not c're t!e in$ir,it# o$ t!e in<'ir# so'%!t to .e pro!i.ited
.# t!e instant petitions. Inso$ar as t!e conso&idated cases are concerned, t!e &e%is&ative investi%ation
s'.5ect t!ereo$ sti&& co'&d not .e 'nderta:en .# t!e respondent Senate Co,,ittees, .eca'se no p'.&is!ed
r'&es %overned it, in c&ear contravention o$ t!e Constit'tion.
=it! t!e $ore%oin% dis<'isition, t!e Co'rt $inds it 'nnecessar# to disc'ss t!e ot!er iss'es raised in t!e
conso&idated petitions.
=HEREFORE, t!e petition in G.R. No. )-2((+ is @ISMISSE@, and t!e petition in G.R. No. )-*3-0 is
GRANTE@. Let a "rit o$ pro!i.ition .e iss'ed en5oinin% t!e Senate o$ t!e Rep'.&ic o$ t!e P!i&ippines
andOor an# o$ its co,,ittees $ro, cond'ctin% an# in<'ir# in aid o$ &e%is&ation centered on t!e ?He&&o Garci?
tapes.
SO OR@ERE@.
CARMELO F. LAcATIN, MARINO A. MORALES, TEO@ORO L. @AII@ and ANGELITO A. PELABO,
Petitioner, v. HON. ANIANO A. @ESIERTO as OM6U@SMAN, and SAN@IGAN6ABAN, THIR@ @IIISION,
Respondents.
On C'&# 33, )**+, t!e Fact1Findin% and Inte&&i%ence 6'rea' o$ t!e O$$ice o$ t!e O,.'ds,an $i&ed a
Co,p&aint1A$$idavit doc:eted as OM6121*+1)022, c!ar%in% !erein petitioners "it! I&&e%a& Use o$ P'.&ic
F'nds as de$ined and pena&iJed 'nder Artic&e 332 o$ t!e Revised Pena& Code and vio&ation o$ Section (,
para%rap!s 7a8 and 7e8 o$ Rep'.&ic Act 7R.A.8 No. (2)*, as a,ended.
T!e co,p&aint a&&e%ed t!at t!ere "ere irre%'&arities in t!e 'se .# t!en Con%ress,an Car,e&&o F. LaJatin
o$ !is Co'ntr#"ide @eve&op,ent F'nd 7C@F8 $or t!e ca&endar #ear )**;, i.e., !e "as .ot! proponent and
i,p&e,enter o$ t!e pro5ects $'nded $ro, !is C@FD !e si%ned vo'c!ers and s'pportin% papers pertinent to
t!e dis.'rse,ent as @is.'rsin% O$$icerD and !e received, as c&ai,ant, ei%!teen 7)+8 c!ec:s a,o'ntin% to
P4,+;+,3--.2+. T!'s, petitioner LaJatin, "it! t!e !e&p o$ petitioners Marino A. Mora&es, An%e&ito A. Pe&a#o
and Teodoro L. @avid, "as a&&e%ed&# a.&e to convert !is C@F into cas!.
A pre&i,inar# investi%ation "as cond'cted and, t!erea$ter, t!e Eva&'ation and Pre&i,inar# Investi%ation
6'rea' 7EPI68 iss'ed a Reso&'tion3 dated Ma# 3*, 3222 reco,,endin% t!e $i&in% a%ainst !erein
petitioners o$ $o'rteen 7)48 co'nts eac! o$ Ma&versation o$ P'.&ic F'nds and vio&ation o$ Section ( 7e8 o$
R.A. No. (2)*. Said Reso&'tion "as approved .# t!e O,.'ds,anD !ence, t"ent#1ei%!t 73+8 In$or,ations
doc:eted as Cri,ina& Case Nos. 3;2+- to 3;))4 "ere $i&ed a%ainst !erein petitioners .e$ore t!e
Sandi%an.a#an.
Petitioner LaJatin and !is co1petitioners t!en $i&ed t!eir respective Motions $or
ReconsiderationOReinvesti%ation, "!ic! ,otions "ere %ranted .# t!e Sandi%an.a#an 7T!ird @ivision8. T!e
Sandi%an.a#an a&so ordered t!e prosec'tion to re1eva&'ate t!e cases a%ainst petitioners.
S'.se<'ent&#, t!e OSP s'.,itted to t!e O,.'ds,an its Reso&'tion( dated Septe,.er )+, 3222. It
reco,,ended t!e dis,issa& o$ t!e cases a%ainst petitioners $or &ac: or ins'$$icienc# o$ evidence.
T!e O,.'ds,an, !o"ever, ordered t!e O$$ice o$ t!e Le%a& A$$airs 7OLA8 to revie" t!e OSP Reso&'tion. In
a Me,orand',4 dated Octo.er 34, 3222, t!e OLA reco,,ended t!at t!e OSP Reso&'tion .e
disapproved and t!e OSP .e directed to proceed "it! t!e tria& o$ t!e cases a%ainst petitioners. On
Octo.er 3-, 3222, t!e O,.'ds,an adopted t!e OLA Me,orand',, t!ere.# disapprovin% t!e OSP
Reso&'tion dated Septe,.er )+, 3222 and orderin% t!e a%%ressive prosec'tion o$ t!e s'.5ect cases. T!e
cases "ere t!en ret'rned to t!e Sandi%an.a#an $or contin'ation o$ cri,ina& proceedin%s.
T!'s, petitioners $i&ed t!e instant petition.
Petitioners a&&e%e t!at
I.
THE OM6U@SMAN ACTE@ =ITH GRAIE A6USE OF @ISCRETION OR ACTE@ =ITHOUT OR IN
EHCESS OF HIS CURIS@ICTION.
II.
THE AUESTIONE@ RESOLUTION =AS 6ASE@ ON MISAPPREHENSION OF FACTS,
SPECULATIONS, SURMISES AN@ CONCECTURES.0
A,p&i$#in% t!eir ar%',ents, petitioners asseverate t!at t!e O,.'ds,an !ad no a't!orit# to overt'rn t!e
OSPQs Reso&'tion dis,issin% t!e cases a%ainst petitioners .eca'se, 'nder Section )(, Artic&e HI o$ t!e
)*+- Constit'tion, t!e O,.'ds,an is c&ot!ed on&# "it! t!e po"er to "atc!, investi%ate and reco,,end
t!e $i&in% o$ proper cases a%ainst errin% o$$icia&s, .'t it "as not %ranted t!e po"er to prosec'te. T!e# point
o't t!at 'nder t!e Constit'tion, t!e po"er to prosec'te .e&on%s to t!e OSP 7$or,er&# t!e Tanod.a#an8,
"!ic! "as intended .# t!e $ra,ers to .e a separate and distinct entit# $ro, t!e O$$ice o$ t!e O,.'ds,an.
Petitioners conc&'de t!at, as provided .# t!e Constit'tion, t!e OSP .ein% a separate and distinct entit#,
t!e O,.'ds,an s!o'&d !ave no po"er and a't!orit# over t!e OSP. T!'s, petitioners ,aintain t!at R.A.
No. ;--2 7T!e O,.'ds,an Act o$ )*+*8, "!ic! ,ade t!e OSP an or%anic co,ponent o$ t!e O$$ice o$ t!e
O,.'ds,an, s!o'&d .e str'c: do"n $or .ein% 'nconstit'tiona&.
Ne9t, petitioners insist t!at t!e# s!o'&d .e a.so&ved $ro, an# &ia.i&it# .eca'se t!e c!ec:s "ere iss'ed to
petitioner LaJatin a&&e%ed&# as rei,.'rse,ent $or t!e advances !e ,ade $ro, !is persona& $'nds $or
e9penses inc'rred to ens're t!e i,,ediate i,p&e,entation o$ pro5ects t!at are .ad&# needed .# t!e
Pinat'.o victi,s.
T!e Co'rt $inds t!e petition 'n,eritorio's.
PetitionersQ attac: a%ainst t!e constit'tiona&it# o$ R.A. No. ;--2 is sta&e. It !as &on% .een sett&ed t!at t!e
provisions o$ R.A. No. ;--2 %rantin% t!e O$$ice o$ t!e O,.'ds,an prosec'toria& po"ers and p&acin% t!e
OSP 'nder said o$$ice !ave no constit'tiona& in$ir,it#. T!e iss'e o$ "!et!er said provisions o$ R.A. No.
;--2 vio&ated t!e Constit'tion !ad .een $'&&# dissected as $ar .ac: as )**0 in Acop v. O$$ice o$ t!e
O,.'ds,an.;
T!erein, t!e Co'rt !e&d t!at %ivin% prosec'toria& po"ers to t!e O,.'ds,an is in accordance "it! t!e
Constit'tion as para%rap! +, Section )(, Artic&e HI provides t!at t!e O,.'ds,an s!a&& ?e9ercise s'c!
ot!er $'nctions or d'ties as ,a# .e provided .# &a".? E&'cidatin% on t!is ,atter, t!e Co'rt stated
9 9 9 =!i&e t!e intention to "it!!o&d prosec'toria& po"ers $ro, t!e O,.'ds,an "as indeed present, t!e
Co,,ission Ere$errin% to t!e Constit'tiona& Co,,ission o$ )*+;F did not !esitate to reco,,end t!at t!e
Le%is&at're co'&d, t!ro'%! stat'te, prescri.e s'c! ot!er po"ers, $'nctions, and d'ties to t!e O,.'ds,an.
9 9 9 As $ina&&# approved .# t!e Co,,ission a$ter severa& a,end,ents, t!is is no" e,.odied in
para%rap! +, Section )(, Artic&e HI 7Acco'nta.i&it# o$ P'.&ic O$$icers8 o$ t!e Constit'tion, "!ic! provides
Sec.)(. T!e O$$ice o$ t!e O,.'ds,an s!a&& !ave t!e $o&&o"in% po"ers, $'nctions, and d'ties
9 9 9
Pro,'&%ate its r'&es and proced're and e9ercise s'c! ot!er $'nctions or d'ties as ,a# .e provided .#
&a".
E9po'ndin% on t!is po"er o$ Con%ress to prescri.e ot!er po"ers, $'nctions, and d'ties to t!e
O,.'ds,an, "e <'ote Co,,issioners Co&a#co and Monsod d'rin% interpe&&ation .# Co,,issioner
Rodri%o
9 9 9
MR. RO@RIGO
Precise&#, I a, co,in% to t!at. T!e &ast o$ t!e en',erated $'nctions o$ t!e O,.'ds,an is ?to e9ercise
s'c! po"ers or per$or, s'c! $'nctions or d'ties as ,a# .e provided .# &a".? So, t!e &e%is&at're ,a# vest
!i, "it! po"ers ta:en a"a# $ro, t!e Tanod.a#an, ,a# it notRcra&a"red
MR. COLABCO
Bes.
MR. MONSO@
Bes.
9 9 9
MR. RO@RIGO
Mada, President. Section 0 reads ?T!e Tanod.a#an s!a&& contin'e to $'nction and e9ercise its po"ers
as provided .# &a".?
MR. COLABCO
T!at is correct, .eca'se it is 'nder P.@. No. );(2.
MR. RO@RIGO
So, i$ it is provided .# &a", it can .e ta:en a"a# .# &a", I s'ppose.
MR. COLABCO
T!at is correct.
MR. RO@RIGO
And precise&#, Section )37;8 sa#s t!at a,on% t!e $'nctions t!at can .e per$or,ed .# t!e O,.'ds,an are
?s'c! $'nctions or d'ties as ,a# .e provided .# &a".? T!e sponsors ad,itted t!at t!e &e%is&at're &ater on
,i%!t re,ove so,e po"ers $ro, t!e Tanod.a#an and trans$er t!ese to t!e O,.'ds,an.
MR. COLABCO
Mada, President, t!at is correct.
9 9 9
MR. RO@RIGO
Mada, President, "!at I a, "orried a.o't is, i$ "e create a constit'tiona& .od# "!ic! !as neit!er p'nitive
nor prosec'tor# po"ers .'t on&# pers'asive po"ers, "e ,i%!t .e raisin% t!e !opes o$ o'r peop&e too
,'c! and t!en disappoint t!e,.
MR. MONSO@
I a%ree "it! t!e Co,,issioner.
MR. RO@RIGO
An#"a#, since "e state t!at t!e po"ers o$ t!e O,.'ds,an can &ater on .e i,p&e,ented .# t!e
&e%is&at're, "!# not &eave t!is to t!e &e%is&at'reR
9 9 9
MR. MONSO@ 7reactin% to state,ents o$ Co,,issioner 6&as Op&e8
9 9 9
=it! respect to t!e ar%',ent t!at !e is a toot!&ess ani,a&, "e "o'&d &i:e to sa# t!at "e are pro,otin% t!e
concept in its $or, at t!e present, .'t "e are a&so sa#in% t!at !e can e9ercise s'c! po"ers and $'nctions
as ,a# .e provided .# &a" in accordance "it! t!e direction o$ t!e t!in:in% o$ Co,,issioner Rodri%o. =e
do not t!in: t!at at t!is ti,e "e s!o'&d prescri.e t!is, .'t "e &eave it 'p to Con%ress at so,e $'t're ti,e i$
it $ee&s t!at it ,a# need to desi%nate "!at po"ers t!e O,.'ds,an need in order t!at !e .e ,ore
e$$ective.STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
T!is is not $orec&osed.
So, t!is is a reversi.&e disa.i&it#, 'n&i:e t!at o$ a e'n'c!D it is not an irreversi.&e disa.i&it#.-
T!e constit'tiona&it# o$ Section ( o$ R.A. No. ;--2, "!ic! s'.s',ed t!e OSP 'nder t!e O$$ice o$ t!e
O,.'ds,an, "as &i:e"ise 'p!e&d .# t!e Co'rt in Acop. It "as e9p&ained, t!'s
9 9 9 t!e petitioners conc&'de t!at t!e inc&'sion o$ t!e O$$ice o$ t!e Specia& Prosec'tor as a,on% t!e
o$$ices 'nder t!e O$$ice o$ t!e O,.'ds,an in Section ( o$ R.A. No. ;--2 7?An Act Providin% $or t!e
F'nctiona& and Str'ct'ra& Or%aniJation o$ t!e O$$ice o$ t!e O,.'ds,an and $or Ot!er P'rposes?8 is
'nconstit'tiona& and void.
T!e contention is not i,pressed "it! ,erit. 9 9 9
9 9 9
9 9 9 Section - o$ Artic&e HI e9press&# provides t!at t!e t!en e9istin% Tanod.a#an, to .e !ence$ort! :no"n
as t!e O$$ice o$ t!e Specia& Prosec'tor, ?s!a&& contin'e to $'nction and e9ercise its po"ers as no" or
!erea$ter ,a# .e provided .# &a", e9cept t!ose con$erred on t!e O$$ice o$ t!e O,.'ds,an created 'nder
t!is Constit'tion.? T!e 'nderscored p!rase evident&# re$ers to t!e Tanod.a#anQs po"ers 'nder P.@. No.
);(2 or s'.se<'ent a,endator# &e%is&ation. It $o&&o"s t!en t!at Con%ress ,a# re,ove an# o$ t!e
Tanod.a#anQsOSpecia& Prosec'torQs po"ers 'nder P.@. No. );(2 or %rant it ot!er po"ers, e9cept t!ose
po"ers con$erred .# t!e Constit'tion on t!e O$$ice o$ t!e O,.'ds,an.
P'rs'in% t!e present &ine o$ reasonin%, "!en one considers t!at .# e9press ,andate o$ para%rap! +,
Section )(, Artic&e HI o$ t!e Constit'tion, t!e O,.'ds,an ,a# ?e9ercise s'c! ot!er po"ers or per$or,
$'nctions or d'ties as ,a# .e provided .# &a",? it is ind'.ita.&e t!en t!at Con%ress !as t!e po"er to p&ace
t!e O$$ice o$ t!e Specia& Prosec'tor 'nder t!e O$$ice o$ t!e O,.'ds,an. In t!e sa,e vein, Con%ress ,a#
re,ove so,e o$ t!e po"ers %ranted to t!e Tanod.a#an .# P.@. No. );(2 and trans$er t!e, to t!e
O,.'ds,anD or %rant t!e O$$ice o$ t!e Specia& Prosec'tor s'c! ot!er po"ers and $'nctions and d'ties as
Con%ress ,a# dee, $it and "ise. T!is Con%ress did t!ro'%! t!e passa%e o$ R.A. No. ;--2.+
T!e $ore%oin% r'&in% o$ t!e Co'rt !as .een reiterated in Ca,ana% v. G'errero.* More recent&#, in O$$ice o$
t!e O,.'ds,an v. Ia&era,)2 t!e Co'rt, .asin% its ratio decidendi on its r'&in% in Acop and Ca,ana%,
dec&ared t!at t!e OSP is ?,ere&# a co,ponent o$ t!e O$$ice o$ t!e O,.'ds,an and ,a# on&# act 'nder
t!e s'pervision and contro&, and 'pon a't!orit# o$ t!e O,.'ds,an? and r'&ed t!at 'nder R.A. No. ;--2,
t!e po"er to preventive&# s'spend is &od%ed on&# "it! t!e O,.'ds,an and @ep't# O,.'ds,an.)) T!e
Co'rtQs r'&in% in Acop t!at t!e a't!orit# o$ t!e O,.'ds,an to prosec'te .ased on R.A. No. ;--2 "as
a't!oriJed .# t!e Constit'tion "as a&so ,ade t!e $o'ndation $or t!e decision in PereJ v.
Sandi%an.a#an,)3 "!ere it "as !e&d t!at t!e po"er to prosec'te carries "it! it t!e po"er to a't!oriJe t!e
$i&in% o$ in$or,ations, "!ic! po"er !ad not .een de&e%ated to t!e OSP. It is, t!ere$ore, .e#ond cavi& t!at
'nder t!e Constit'tion, Con%ress "as not proscri.ed $ro, &e%is&atin% t!e %rant o$ additiona& po"ers to t!e
O,.'ds,an or p&acin% t!e OSP 'nder t!e O$$ice o$ t!e O,.'ds,an.
Petitioners no" assert t!at t!e Co'rtQs r'&in% on t!e constit'tiona&it# o$ t!e provisions o$ R.A. No. ;--2
s!o'&d .e revisited and t!e princip&e o$ stare decisis set aside. A%ain, t!is contention deserves scant
consideration.
T!e doctrine o$ stare decisis et non <'ieta ,overe 7to ad!ere to precedents and not to 'nsett&e t!in%s
"!ic! are esta.&is!ed8 is e,.odied in Artic&e + o$ t!e Civi& Code o$ t!e P!i&ippines "!ic! provides, t!'s
ART. +. C'dicia& decisions app&#in% or interpretin% t!e &a"s or t!e Constit'tion s!a&& $or, a part o$ t!e &e%a&
s#ste, o$ t!e P!i&ippines.
It "as $'rt!er e9p&ained in Fer,in v. Peop&e)( as $o&&o"s
T!e doctrine o$ stare decisis en5oins ad!erence to 5'dicia& precedents. It re<'ires co'rts in a co'ntr# to
$o&&o" t!e r'&e esta.&is!ed in a decision o$ t!e S'pre,e Co'rt t!ereo$. T!at decision .eco,es a 5'dicia&
precedent to .e $o&&o"ed in s'.se<'ent cases .# a&& co'rts in t!e &and. T!e doctrine o$ stare decisis is
.ased on t!e princip&e t!at once a <'estion o$ &a" !as .een e9a,ined and decided, it s!o'&d .e dee,ed
sett&ed and c&osed to $'rt!er ar%',ent.)4 STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
In C!inese Bo'n% MenQs C!ristian Association o$ t!e P!i&ippine Is&ands v. Re,in%ton Stee& Corporation,)0
t!e Co'rt e9po'nded on t!e i,portance o$ t!e $ore%oin% doctrine, statin% t!at
T!e doctrine o$ stare decisis is one o$ po&ic# %ro'nded on t!e necessit# $or sec'rin% certaint# and sta.i&it#
o$ 5'dicia& decisions, t!'s
Ti,e and a%ain, t!e co'rt !as !e&d t!at it is a ver# desira.&e and necessar# 5'dicia& practice t!at"!en a
co'rt !as &aid do"n a princip&e o$ &a" as app&ica.&e to a certain state o$ $acts, it "i&& ad!ere to t!at princip&e
and app&# it to a&& $'t're cases in "!ic! t!e $acts are s'.stantia&&# t!e sa,e. Stare decisis et non <'ieta
,overe. Stand .# t!e decisions and dist'r. not "!at is sett&ed. Stare decisis si,p&# ,eans t!at $or t!e
sa:e o$ certaint#, a conc&'sion reac!ed in one case s!o'&d .e app&ied to t!ose t!at $o&&o" i$ t!e $acts are
s'.stantia&&# t!e sa,e, even t!o'%! t!e parties ,a# .e di$$erent. It proceeds $ro, t!e $irst princip&e o$
5'stice t!at, a.sent an# po"er$'& co'ntervai&in% considerations, &i:e cases o'%!t to .e decided a&i:e. T!'s,
"!ere t!e sa,e <'estions re&atin% to t!e sa,e event !ave .een p't $or"ard .# t!e parties si,i&ar&#
sit'ated as in a previo's case &iti%ated and decided .# a co,petent co'rt, t!e r'&e o$ stare decisis is a .ar
to an# atte,pt to re&iti%ate t!e sa,e iss'e.);
T!e doctrine !as ass',ed s'c! va&'e in o'r 5'dicia& s#ste, t!at t!e Co'rt !as r'&ed t!at ?EaF.andon,ent
t!ereo$ ,'st .e .ased on&# on stron% and co,pe&&in% reasons, ot!er"ise, t!e .eco,in% virt'e o$
predicta.i&it# "!ic! is e9pected $ro, t!is Co'rt "o'&d .e i,,eas'ra.&# a$$ected and t!e p'.&icQs
con$idence in t!e sta.i&it# o$ t!e so&e,n prono'nce,ents di,inis!ed.?)- Ieri&#, on&# 'pon s!o"in% t!at
circ',stances attendant in a partic'&ar case override t!e %reat .ene$its derived .# o'r 5'dicia& s#ste,
$ro, t!e doctrine o$ stare decisis, can t!e co'rts .e 5'sti$ied in settin% aside t!e sa,e.
In t!is case, petitioners !ave not s!o"n an# stron%, co,pe&&in% reason to convince t!e Co'rt t!at t!e
doctrine o$ stare decisis s!o'&d not .e app&ied to t!is case. T!e# !ave not s'ccess$'&&# de,onstrated !o"
or "!# it "o'&d .e %rave a.'se o$ discretion $or t!e O,.'ds,an, "!o !as .een va&id&# con$erred .# &a"
"it! t!e po"er o$ contro& and s'pervision over t!e OSP, to disapprove or overt'rn an# reso&'tion iss'ed
.# t!e &atter.
T!e second iss'e advanced .# petitioners is t!at t!e O,.'ds,anQs disapprova& o$ t!e OSP Reso&'tion
reco,,endin% dis,issa& o$ t!e cases is .ased on ,isappre!ension o$ $acts, spec'&ations, s'r,ises and
con5ect'res. T!e <'estion is rea&&# "!et!er t!e O,.'ds,an correct&# r'&ed t!at t!ere "as eno'%!
evidence to s'pport a $indin% o$ pro.a.&e ca'se. T!at iss'e, !o"ever, pertains to a ,ere error o$
5'd%,ent. It ,'st .e stressed t!at certiorari is a re,ed# ,eant to correct on&# errors o$ 5'risdiction, not
errors o$ 5'd%,ent. T!is !as .een e,p!asiJed in First Corporation v. For,er Si9t! @ivision o$ t!e Co'rt o$
Appea&s,)+ to "it
It is a $'nda,enta& ap!oris, in &a" t!at a revie" o$ $acts and evidence is not t!e province o$ t!e
e9traordinar# re,ed# o$ certiorari, "!ic! is e9tra ordine, 1 .e#ond t!e a,.it o$ appea&. In certiorari
proceedin%s, 5'dicia& revie" does not %o as $ar as to e9a,ine and assess t!e evidence o$ t!e parties and
to "ei%! t!e pro.ative va&'e t!ereo$. It does not inc&'de an in<'ir# as to t!e correctness o$ t!e eva&'ation
o$ evidence. An# error co,,itted in t!e eva&'ation o$ evidence is ,ere&# an error o$ 5'd%,ent t!at cannot
.e re,edied .# certiorari . An error o$ 5'd%,ent is one "!ic! t!e co'rt ,a# co,,it in t!e e9ercise o$ its
5'risdiction. An error o$ 5'risdiction is one "!ere t!e act co,p&ained o$ "as iss'ed .# t!e co'rt "it!o't or
in e9cess o$ 5'risdiction, or "it! %rave a.'se o$ discretion, "!ic! is tanta,o'nt to &ac: or in e9cess o$
5'risdiction and "!ic! error is correcti.&e on&# .# t!e e9traordinar# "rit o$ certiorari . Certiorari "i&& not .e
iss'ed to c're errors o$ t!e tria& co'rt in its appreciation o$ t!e evidence o$ t!e parties, or its conc&'sions
anc!ored on t!e said $indin%s and its conc&'sions o$ &a". It is not $or t!is Co'rt to re1e9a,ine con$&ictin%
evidence, re1eva&'ate t!e credi.i&it# o$ t!e "itnesses or s'.stit'te t!e $indin%s o$ $act o$ t!e co'rt a <'o.)*
Evident&#, t!e iss'e o$ "!et!er t!e evidence indeed s'pports a $indin% o$ pro.a.&e ca'se "o'&d
necessitate an e9a,ination and re1eva&'ation o$ t!e evidence 'pon "!ic! t!e O,.'ds,an .ased its
disapprova& o$ t!e OSP Reso&'tion. Hence, t!e Petition $or Certiorari s!o'&d not .e %iven d'e co'rse.
Li:e"ise note"ort!# is t!e !o&din% o$ t!e Co'rt in Presidentia& Ad Hoc Fact1Findin% Co,,ittee on 6e!est
Loans v. @esierto,32 i,partin% t!e va&'e o$ t!e O,.'ds,anQs independence, statin% t!'s
Under Sections )3 and )(, Artic&e HI o$ t!e )*+- Constit'tion and RA ;--2 7T!e O,.'ds,an Act o$
)*+*8, t!e O,.'ds,an !as t!e po"er to investi%ate and prosec'te an# act or o,ission o$ a p'.&ic o$$icer
or e,p&o#ee "!en s'c! act or o,ission appears to .e i&&e%a&, 'n5'st, i,proper or ine$$icient. It !as .een
t!e consistent r'&in% o$ t!e Co'rt not to inter$ere "it! t!e O,.'ds,anQs e9ercise o$ !is investi%ator# and
prosec'tor# po"ers as &on% as !is r'&in%s are s'pported .# s'.stantia& evidence. Envisioned as t!e
c!a,pion o$ t!e peop&e and preserver o$ t!e inte%rit# o$ p'.&ic service, !e !as "ide &atit'de in e9ercisin%
!is po"ers and is $ree $ro, intervention $ro, t!e t!ree .ranc!es o$ %overn,ent. T!is is to ens're t!at !is
O$$ice is ins'&ated $ro, an# o'tside press're and i,proper in$&'ence.3)
Indeed, $or t!e Co'rt to overt'rn t!e O,.'ds,anQs $indin% o$ pro.a.&e ca'se, it is i,perative $or
petitioners to c&ear&# prove t!at said p'.&ic o$$icia& acted "it! %rave a.'se o$ discretion. In Presidentia&
Co,,ission on Good Govern,ent v. @esierto,33 t!e Co'rt e&a.orated on "!at constit'tes s'c! a.'se, to
"it
Grave a.'se o$ discretion i,p&ies a capricio's and "!i,sica& e9ercise o$ 5'd%,ent tanta,o'nt to &ac: o$
5'risdiction. T!e O,.'ds,anQs e9ercise o$ po"er ,'st !ave .een done in an ar.itrar# or despotic ,anner
"!ic! ,'st .e so patent and %ross as to a,o'nt to an evasion o$ a positive d't# or a virt'a& re$'sa& to
per$or, t!e d't# en5oined or to act at a&& in conte,p&ation o$ &a". 9 9 93(
In t!is case, petitioners $ai&ed to de,onstrate t!at t!e O,.'ds,an acted in a ,anner descri.ed a.ove.
C&ear&#, t!e O,.'ds,an "as actin% in accordance "it! R.A. No. ;--2 and proper&# e9ercised its po"er o$
contro& and s'pervision over t!e OSP "!en it disapproved t!e Reso&'tion dated Septe,.er )+, 3222.
It s!o'&d a&so .e noted t!at t!e petition does not <'estion an# order or action o$ t!e Sandi%an.a#an T!ird
@ivisionD !ence, it s!o'&d not !ave .een inc&'ded as a respondent in t!is petition.
IN IIE= OF THE FOREGOING, t!e petition is @ISMISSE@ $or &ac: o$ ,erit. No costs.
SO OR@ERE@.
FER@INAN@ A. CRUc, ((3 E@ANG ST., PASAB CITB, Petitioner, v. CU@GE PRISCILLA MICARES,
PRESI@ING CU@GE, REGIONAL TRIAL COURT, 6RANCH )2+, PASAB CITB, METRO MANILA,
PU6LIC, Respondents.
6ENCAMIN MINA, CR., ((3 E@ANG ST., PASAB CITB, Private Respondents..
On Marc! 0, 3223, Ferdinand A. Cr'J 7petitioner8 so'%!t per,ission to enter !is appearance $or and on
!is .e!a&$, .e$ore t!e RTC, 6ranc! )2+, Pasa# Cit#, as t!e p&ainti$$ in Civi& Case No. 2)124)2, $or
A.ate,ent o$ N'isance. Petitioner, a $o'rt! #ear &a" st'dent, anc!ors !is c&ai, on Section (4 o$ R'&e )(+
o$ t!e R'&es o$ Co'rt( t!at a non1&a"#er ,a# appear .e$ore an# co'rt and cond'ct !is &iti%ation
persona&&#.
@'rin% t!e pre1tria&, C'd%e Prisci&&a Mi5ares re<'ired t!e petitioner to sec're a "ritten per,ission $ro, t!e
Co'rt Ad,inistrator .e$ore !e co'&d .e a&&o"ed to appear as co'nse& $or !i,se&$, a part#1&iti%ant. Att#.
Stan&e# Ca.rera, co'nse& $or 6en5a,in Mina, Cr., $i&ed a Motion to @is,iss instead o$ a pre1tria& .rie$ to
"!ic! petitioner Cr'J ve!e,ent&# o.5ected a&&e%in% t!at a Motion to @is,iss is not a&&o"ed a$ter t!e
Ans"er !ad .een $i&ed. C'd%e Mi5ares t!en re,ar:ed, ?Ha# na:', ,asa,a p#'n% ,ar'non% pa sa H'"es.
O:R? and proceeded to !ear t!e pendin% Motion to @is,iss and ca&endared t!e ne9t !earin% on Ma# 3,
3223.
On Marc! ;, 3223, petitioner Cr'J $i&ed a Mani$estation and Motion to In!i.it,4 pra#in% $or t!e vo&'ntar#
in!i.ition o$ C'd%e Mi5ares. T!e Motion a&&e%ed t!at e9pected partia&it# on t!e part o$ t!e respondent 5'd%e
in t!e cond'ct o$ t!e tria& co'&d .e in$erred $ro, t!e cont',acio's re,ar:s o$ C'd%e Mi5ares d'rin% t!e
pre1tria&. It asserts t!at t!e 5'd%e, in 'tterin% an 'nca&&ed $or re,ar:, re$&ects a ne%ative $ra,e o$ ,ind,
"!ic! en%enders t!e .e&ie$ t!at 5'stice "i&& not .e served.0
In an Order; dated Apri& )*, 3223, C'd%e Mi5ares denied t!e ,otion $or in!i.ition statin% t!at t!ro"in%
ten'o's a&&e%ations o$ partia&it# .ased on t!e said re,ar: is not eno'%! to "arrant !er vo&'ntar# in!i.ition,
considerin% t!at it "as said even prior to t!e start o$ pre1tria&. Petitioner $i&ed a ,otion $or reconsideration-
o$ t!e said order.
On Ma# )2, 3223, C'd%e Mi5ares denied t!e ,otion "it! $ina&it#.+ In t!e sa,e Order, t!e tria& co'rt !e&d
t!at $or t!e $ai&'re o$ petitioner Cr'J to s'.,it t!e pro,ised doc',ent and 5'rispr'dence, and $or !is
$ai&'re to satis$# t!e re<'ire,ents or conditions 'nder R'&e )(+1A o$ t!e R'&es o$ Co'rt, !is appearance
"as denied.
In a ,otion $or reconsideration,* petitioner reiterated t!at t!e .asis o$ !is appearance "as not R'&e )(+1A,
.'t Section (4 o$ R'&e )(+. He contended t!at t!e t"o R'&es "ere distinct and are app&ica.&e to di$$erent
circ',stances, .'t t!e respondent 5'd%e denied t!e sa,e, sti&& invo:in% R'&e )(+1A, in an Order)2 dated
C'&# (), 3223.
On A'%'st );, 3223, t!e petitioner direct&# $i&ed "it! t!is Co'rt, t!e instant petition and assi%ns t!e
$o&&o"in% errors
I.
THE RESPON@ENT REGIONAL TRIAL COURT GRAIELB ERRE@ AN@ A6USE@ ITS @ISCRETION
=HEN IT @ENIE@ THE APPEARANCE OF THE PETITIONER, FOR AN@ IN THE LATTERQS 6EHALF,
IN CIIIL CASE NO. 2)1242) EsicF CONTRARB TO RULE )(+, SECTION (4 OF THE RULES OF COURT,
PROII@ING FOR THE APPEARANCE OF NON1LA=BERS AS A PARTB LITIGANTD
II.
THE RESPON@ENT COURT GRAIELB ERRE@ AN@ A6USE@ ITS @ISCRETION =HEN IT @I@ NOT
IOLUNTARILB INHI6IT @ESPITE THE A@IENT OF CURISPRU@ENCE EsicF THAT SUCH AN
INHI6ITION IS PROPER TO PRESERIE THE PEOPLEQS FAITH AN@ CONFI@ENCE TO THE COURTS.
T!e core iss'es raised .e$ore t!e Co'rt are 7)8 "!et!er t!e e9traordinar# "rits o$ certiorari, pro!i.ition
and ,anda,'s 'nder R'&e ;0 o$ t!e )**- R'&es o$ Co'rt ,a# iss'eD and 738 "!et!er t!e respondent
co'rt acted "it! %rave a.'se o$ discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction "!en it denied t!e
appearance o$ t!e petitioner as part# &iti%ant and "!en t!e 5'd%e re$'sed to in!i.it !erse&$ $ro, tr#in% t!e
case.
T!is Co'rtQs 5'risdiction to iss'e "rits o$ certiorari, pro!i.ition, ,anda,'s and in5'nction is not e9c&'siveD it
!as conc'rrent 5'risdiction "it! t!e RTCs and t!e Co'rt o$ Appea&s. T!is conc'rrence o$ 5'risdiction is not,
!o"ever, to .e ta:en as an a.so&'te, 'nrestrained $reedo, to c!oose t!e co'rt "!ere t!e app&ication
t!ere$or "i&& .e directed.)) A .eco,in% re%ard o$ t!e 5'dicia& !ierarc!# ,ost certain&# indicates t!at
petitions $or t!e iss'ance o$ e9traordinar# "rits a%ainst t!e RTCs s!o'&d .e $i&ed "it! t!e Co'rt o$
Appea&s.)3 T!e !ierarc!# o$ co'rts is deter,inative o$ t!e appropriate $or', $or petitions $or t!e
e9traordinar# "ritsD and on&# in e9ceptiona& cases and $or co,pe&&in% reasons, or i$ "arranted .# t!e
nat're o$ t!e iss'es revie"ed, ,a# t!is Co'rt ta:e co%niJance o$ petitions $i&ed direct&# .e$ore it.)(
Considerin%, !o"ever, t!at t!is case invo&ves t!e interpretation o$ Section (4, R'&e )(+ and R'&e )(+1A o$
t!e R'&es o$ Co'rt, t!e Co'rt ta:es co%niJance o$ !erein petition. Nonet!e&ess, t!e petitioner is ca'tioned
not to contin'e !is practice o$ $i&in% direct&# .e$ore t!is Co'rt petitions 'nder R'&e ;0 "!en t!e iss'e raised
can .e reso&ved "it! dispatc! .# t!e Co'rt o$ Appea&s. =e "i&& not to&erate &iti%ants "!o ,a:e a ,oc:er#
o$ t!e 5'dicia& !ierarc!# as it necessari&# de&a#s ,ore i,portant concerns .e$ore 's.
In reso&vin% t!e second iss'e, a co,parative readin% o$ R'&e )(+, Section (4 and R'&e )(+1A is
necessar#.
R'&e )(+1A, or t!e La" St'dent Practice R'&e, provides
RULE )(+1A
LA= STU@ENT PRACTICE RULE
Section ). Conditions $or St'dent Practice. 1 A &a" st'dent "!o !as s'ccess$'&&# co,p&eted !is (rd #ear o$
t!e re%'&ar $o'r1#ear prescri.ed &a" c'rric'&', and is enro&&ed in a reco%niJed &a" sc!oo&Qs c&inica& &e%a&
ed'cation pro%ra, approved .# t!e S'pre,e Co'rt, ,a# appear "it!o't co,pensation in an# civi&,
cri,ina& or ad,inistrative case .e$ore an# tria& co'rt, tri.'na&, .oard or o$$icer, to represent indi%ent c&ients
accepted .# t!e &e%a& c&inic o$ t!e &a" sc!oo&.
Sec. 3. Appearance. 1 T!e appearance o$ t!e &a" st'dent a't!oriJed .# t!is r'&e, s!a&& .e 'nder t!e direct
s'pervision and contro& o$ a ,e,.er o$ t!e Inte%rated 6ar o$ t!e P!i&ippines d'&# accredited .# t!e &a"
sc!oo&. An# and a&& p&eadin%s, ,otions, .rie$s, ,e,oranda or ot!er papers to .e $i&ed, ,'st .e si%ned .#
t!e s'pervisin% attorne# $or and in .e!a&$ o$ t!e &e%a& c&inic.
T!e respondent co'rt !e&d t!at t!e petitioner co'&d not appear $or !i,se&$ and on !is .e!a&$ .eca'se o$ !is
$ai&'re to co,p&# "it! R'&e )(+1A. In den#in% petitionerQs appearance, t!e co'rt a <'o terse&# $inds re$'%e
in t!e $act t!at, on @ece,.er )+, )*+;, t!is Co'rt iss'ed Circ'&ar No. )*, "!ic! event'a&&# .eca,e R'&e
)(+1A, and t!e $ai&'re o$ Cr'J to prove on record t!at !e is enro&&ed in a reco%niJed sc!oo&Qs c&inica& &e%a&
ed'cation pro%ra, and is 'nder s'pervision o$ an attorne# d'&# accredited .# t!e &a" sc!oo&.
Ho"ever, t!e petitioner insisted t!at t!e .asis o$ !is appearance "as Section (4 o$ R'&e )(+, "!ic!
provides
Sec. (4. 6# "!o, &iti%ation is cond'cted. 1 In t!e co'rt o$ a 5'stice o$ t!e peace, a part# ,a# cond'ct !is
&iti%ation in person, "it! t!e aid o$ an a%ent or $riend appointed .# !i, $or t!at p'rpose, or "it! t!e aid o$
an attorne#. In an# ot!er co'rt, a part# ,a# cond'ct !is &iti%ation persona&&# or .# aid o$ an attorne#, and
!is appearance ,'st .e eit!er persona& or .# a d'&# a't!oriJed ,e,.er o$ t!e .ar.
and is a r'&e distinct $ro, R'&e )(+1A.
Fro, t!e c&ear &an%'a%e o$ t!is provision o$ t!e R'&es, it "i&& !ave to .e conceded t!at t!e contention o$
t!e petitioner !as ,erit. It reco%niJes t!e ri%!t o$ an individ'a& to represent !i,se&$ in an# case to "!ic! !e
is a part#. T!e R'&es state t!at a part# ,a# cond'ct !is &iti%ation persona&&# or "it! t!e aid o$ an attorne#,
and t!at !is appearance ,'st eit!er .e persona& or .# a d'&# a't!oriJed ,e,.er o$ t!e 6ar. T!e
individ'a& &iti%ant ,a# persona&&# do ever#t!in% in t!e co'rse o$ proceedin%s $ro, co,,ence,ent to t!e
ter,ination o$ t!e &iti%ation.)4 Considerin% t!at a part# persona&&# cond'ctin% !is &iti%ation is restricted to
t!e sa,e r'&es o$ evidence and proced're as t!ose <'a&i$ied to practice &a",)0Petitioner, not .ein% a
&a"#er !i,se&$, r'ns t!e ris: o$ $a&&in% into t!e snares and !aJards o$ !is o"n i%norance. T!ere$ore, Cr'J
as p&ainti$$, at !is o"n instance, can persona&&# cond'ct t!e &iti%ation o$ Civi& Case No. 2)124)2. He "o'&d
t!en .e actin% not as a co'nse& or &a"#er, .'t as a part# e9ercisin% !is ri%!t to represent !i,se&$.
T!e tria& co'rt ,'st !ave .een ,is&ed .# t!e $act t!at t!e petitioner is a &a" st'dent and ,'st, t!ere$ore,
.e s'.5ect to t!e conditions o$ t!e La" St'dent Practice R'&e. It erred in app&#in% R'&e )(+1A, "!en t!e
.asis o$ t!e petitionerQs c&ai, is Section (4 o$ R'&e )(+. T!e $or,er r'&e provides $or conditions "!en a
&a" st'dent ,a# appear in co'rts, "!i&e t!e &atter r'&e a&&o"s t!e appearance o$ a non1&a"#er as a part#
representin% !i,se&$.
T!e conc&'sion o$ t!e tria& co'rt t!at R'&e )(+1A s'perseded R'&e )(+ .# virt'e o$ Circ'&ar No. )* is
,isp&aced. T!e Co'rt never intended to repea& R'&e )(+ "!en it re&eased t!e %'ide&ines $or &i,ited &a"
st'dent practice. In $act, it "as intended as an addend', to t!e instances "!en a non1&a"#er ,a# appear
in co'rts and "as incorporated to t!e R'&es o$ Co'rt t!ro'%! R'&e )(+1A.
It ,a# .e re&evant to reca&& t!at, in respect to t!e constit'tiona& ri%!t o$ an acc'sed to .e !eard .# !i,se&$
and co'nse&,); t!is Co'rt !as !e&d t!at d'rin% t!e tria&, t!e ri%!t to co'nse& cannot .e "aived.)- T!e
rationa&e $or t!is r'&in% "as artic'&ated in Peop&e v. Ho&%ado,)+ "!ere "e dec&ared t!at ?even t!e ,ost
inte&&i%ent or ed'cated ,an ,a# !ave no s:i&& in t!e science o$ &a", partic'&ar&# in t!e r'&es o$ proced're,
and "it!o't co'nse&, !e ,a# .e convicted not .eca'se !e is %'i&t# .'t .eca'se !e does not :no" !o" to
esta.&is! !is innocence.?
T!e case at .ar invo&ves a civi& case, "it! t!e petitioner as p&ainti$$ t!erein. T!e so&icito's concern t!at t!e
Constit'tion accords t!e acc'sed in a cri,ina& prosec'tion o.vio's&# does not o.tain in a civi& case. T!'s,
a part# &iti%ant in a civi& case, "!o insists t!at !e can, "it!o't a &a"#erQs assistance, e$$ective&# 'nderta:e
t!e s'ccess$'& p'rs'it o$ !is c&ai,, ,a# .e %iven t!e c!ance to do so. In t!is case, petitioner a&&e%es t!at
!e is a &a" st'dent and i,p&ied&# asserts t!at !e !as t!e co,petence to &iti%ate t!e case !i,se&$.
Evident&#, !e is a"are o$ t!e peri&s incident to t!is decision.
In addition, it "as s'.se<'ent&# c&ari$ied in 6ar Matter -(2, t!at .# virt'e o$ Section (4, R'&e )(+, a &a"
st'dent ,a# appear as an a%ent or a $riend o$ a part# &iti%ant, "it!o't need o$ t!e s'pervision o$ a &a"#er,
.e$ore in$erior co'rts. Here, "e !ave a &a" st'dent "!o, as part# &iti%ant, "is!es to represent !i,se&$ in
co'rt. =e s!o'&d %rant !is "is!.
Additiona&&#, !o"ever, petitioner contends t!at t!e respondent 5'd%e co,,itted ,ani$est .ias and
partia&it# .# r'&in% t!at t!ere is no va&id %ro'nd $or !er vo&'ntar# in!i.ition despite !er a&&e%ed ne%ative
de,eanor d'rin% t!e pre1tria& "!en s!e said ?Ha# na:', ,asa,a p#'n% ,ar'non% pa sa H'"es. O:R?
Petitioner avers t!at .# den#in% !is ,otion, t!e respondent 5'd%e a&read# ,ani$ested cond'ct indicative o$
ar.itrariness and pre5'dice, ca'sin% petitionerQs and !is co1p&ainti$$Qs &oss o$ $ait! and con$idence in t!e
respondentQs i,partia&it#.
=e do not a%ree.
It ,'st .e noted t!at .eca'se o$ t!is incident, t!e petitioner $i&ed an ad,inistrative case)* a%ainst t!e
respondent $or vio&ation o$ t!e Canons o$ C'dicia& Et!ics, "!ic! "e dis,issed $or &ac: o$ ,erit on
Septe,.er )0, 3223. =e no" adopt t!e Co'rtQs $indin%s o$ $act in t!e ad,inistrative case and r'&e t!at
t!ere "as no %rave a.'se o$ discretion on t!e part o$ C'd%e Mi5ares "!en s!e did not in!i.it !erse&$ $ro,
t!e tria& o$ t!e case.
In a Motion $or In!i.ition, t!e ,ovant ,'st prove t!e %ro'nd $or .ias and pre5'dice .# c&ear and
convincin% evidence to dis<'a&i$# a 5'd%e $ro, participatin% in a partic'&ar tria&,32 as vo&'ntar# in!i.ition is
pri,ari&# a ,atter o$ conscience and addressed to t!e so'nd discretion o$ t!e 5'd%e. T!e decision on
"!et!er s!e s!o'&d in!i.it !erse&$ ,'st .e .ased on !er rationa& and &o%ica& assess,ent o$ t!e
circ',stances prevai&in% in t!e case .e$ore !er.3) A.sent c&ear and convincin% proo$ o$ %rave a.'se o$
discretion on t!e part o$ t!e 5'd%e, t!is Co'rt "i&& r'&e in $avor o$ t!e pres',ption t!at o$$icia& d't# !as
.een re%'&ar&# per$or,ed.
=HEREFORE, t!e Petition is PARTIALLB GRANTE@. T!e assai&ed Reso&'tion and Order o$ t!e Re%iona&
Tria& Co'rt, 6ranc! )2+, Pasa# Cit# are MO@IFIE@. Re%iona& Tria& Co'rt, 6ranc! )2+, Pasa# Cit# is
@IRECTE@ to A@MIT t!e Entr# o$ Appearance o$ petitioner in Civi& Case No. 2)124)2 as a part# &iti%ant.
FIRST UNITE@ CONSTRUCTORS CORPORATION, Petitioner, v. PORO POINT MANAGEMENT
CORPORATION 7PPMC8, THE SPECIAL 6I@S M A=AR@S COMMITTEE 7S6AC8 o$ PPMC, ATTB.
FELIH S. RACA@IO, and SATRAP CONSTRUCTION COMPANB, INC., Respondents.
On Can'ar# 3;, 322-, PPMC approved t!e Contract $or t!e Up%radin% o$ t!e San Fernando Airport P!ase
I. T!e S6AC t!en iss'ed invitations to rep'ta.&e contractors to pre1<'a&i$# $or t!e pro5ect.
FUCC and t"o 738 ot!er contractors 1 C.M. Panc!o Constr'ction, Inc. 7C.M. Panc!o8 and EEI1Ne"
Nan&aon Constr'ction, Inc. Coint Ient're 7EEI1Ne" Nan&aon CI8 responded to t!e invitation and "ere pre1
<'a&i$ied to .id $or t!e pro5ect. Ho"ever, 'pon eva&'ation, none o$ t!e pre1<'a&i$ied .idders "as c!osen.
C.M. Panc!o "as dis<'a&i$ied .eca'se it did not possess t!e re<'ired ,ini,', #ears o$ e9perience in
airport pro5ects, "!i&e EEI Ne" Nan&aon CI "as dis<'a&i$ied .eca'se it did not s'.,it a specia& &icense to
.id as 5oint vent're. FUCCQs tec!nica& proposa&, on t!e ot!er !and, o.tained a $ai&in% ,ar: .eca'se it
$ai&ed to s'.,it t!e a'to,ated "eat!er o.servation s#ste, 7A=OS8 and its a't!oriJed representative did
not si%n so,e pa%es o$ t!e narrative constr'ction ,et!od and t!e ta9 ret'rns. FUCC so'%!t
reconsideration o$ t!e S6AC decision, .'t it "as denied.4
FUCC t!en $i&ed a protest0 "it! t!e PPMC. On Marc! 3;, 322-, Att#. Fe&i9 S. Racadio, PPMC Head,
reso&ved FUCCQs protest, viJ.
In s',, .ased on t!e iss'es raised and Et!eF ar%',ents presented .# FUCC, t!is OFFICE $inds NO
REIERSI6LE ERROR co,,itted .# S6AC, .ot! on its $indin%s o$ 2; Marc! 322- 7%ivin% FUCC t!e
FAILE@ ratin%8 and )3 Marc! 322- 7denia& o$ FUCCQs Motion $or Reconsideration8.
In addition to t!e ?NO REIERSI6LE ERROR FIN@ING,? t!ere e9ists a PRESUMPTION OF
REGULARITB OF OFFICIAL ACTION OF A PU6LIC OFFICER. In t!e case at .ar, s'c! pres',ption
app&ies. T!e .'rden o$ proo$ &ies "it! t!e FUCC. On t!is score, FUCC $ai&ed to even 5'st scratc! t!e
s'r$ace o$ t!e sa,e.
T!e proceedin%s and $indin%s o$ S6AC, in t!e Pre1A'a&i$ication sta%e not !avin% .een p't into iss'e .#
t!e PROTEST, t!en, FUCC !ad opted to &eave t!e, as t!e# "ere, t!'s, &et t!e, re,ain UN@ISTUR6E@.
=HEREFORE, in vie" o$ t!e $ore%oin%, t!e PROTEST $i&ed .# FUCC "!ic! is 'nder consideration is
!ere.# @ISMISSE@ $or &ac: o$ ,erit.
T!e FILING FEE paid .# FUCC, t!e protestant, via Metro 6an: Cas!ierQs C!ec: No. 2;222)+0)(, dated
Marc! )*, 322-, in t!e a,o'nt o$ Fo'r Mi&&ion Seven H'ndred T"ent#1One T!o'sand Pesos
7P4,-3),222.228, P!i&ippine C'rrenc#, "!ic! is e<'iva&ent to one EpercentF 7P8 o$ t!e A6C .ein% NON1
REFUN@A6LE 7Sec. 00.), IRR1A, RA )*+48, t!e sa,e is !ere.# ordered FORFEITE@ in $avor o$ PPMC.
SO OR@ERE@.;
S6AC t!en sc!ed'&ed a re1.iddin% and iss'ed ne" invitations to .id $or t!e pro5ect. To en5oin t!e re1
.iddin% set on Ma# +, 322-, FUCC $i&ed a petition $or in5'nction "it! pra#er $or t!e iss'ance o$ a
pre&i,inar# in5'nction or te,porar# restrainin% order 7TRO8 "it! t!e Re%iona& Tria& Co'rt 7RTC8 o$ La
Union, doc:eted as Civi& Case No. -3-4.
On Ma# 3, 322-, t!e RTC iss'ed a TRO "!ic!, !o"ever, "as &i$ted on Ma# 4, 322- .eca'se 'nder
Section ( o$ Rep'.&ic Act No. +*-0,- no co'rt, e9cept t!e S'pre,e Co'rt, s!a&& iss'e a TRO or in5'nction
or pro!i.it t!e .iddin% or a"ard o$ a %overn,ent in$rastr'ct're pro5ect. S6AC t!'s proceeded "it! t!e re1
.iddin% o$ t!e pro5ect on Ma# +, 322- and a"arded t!e pro5ect to SCCI as t!e &o"est <'a&i$ied .idder.+
T!e Contract* $or t!e pro5ect "as si%ned, and a notice to proceed)2 "as served on SCCI on Ma# 3*,
322-.
FUCC $i&ed an a,ended petition "it! t!e RTC to en5oin t!e i,p&e,entation o$ t!e pro5ect. T!e O$$ice o$
t!e Govern,ent Corporate Co'nse& 7OGCC8 ,oved to dis,iss t!e petition $or &ac: o$ 5'risdiction.
Pendin% reso&'tion o$ OGCCQs ,otion to dis,iss, FUCC ,oved $or t!e dis,issa& o$ its a,ended petition,
"!ic! "as %ranted .# t!e RTC on C'&# 4, 322-, to "it
Actin% on t!e a.ove1stated notice o$ dis,issa&, t!is Co'rt !ere.# con$ir,s t!e dis,issa& o$ t!e a,ended
petition, in e$$ect t!e dis,issa& o$ t!e "!o&e action, "it!o't pre5'dice, p'rs'ant to Sec. ), R'&e )- o$ t!e
R'&es o$ Co'rt.
=HEREFORE, t!is case is !ere.# @ISMISSE@.
SO OR@ERE@.))
C&ai,in% t!at t!ere is no appea&, or an# speed# and ade<'ate re,ed# in t!e ordinar# co'rse o$ &a",
FUCC co,es to 's via t!is petition. It a&so as:s $or t!e iss'ance o$ a TRO to en5oin t!e i,p&e,entation o$
t!e pro5ect, assertin% t!at SCCI is not <'a&i$ied to 'nderta:e t!e pro5ect and t!e a"ard c&ear&# poses a rea&
t!reat to t!e p'.&ic "e&$are and sa$et#. In its Nove,.er )3, 322- Reso&'tion, t!is Co'rt denied FUCCQs
app&ication $or t!e iss'ance o$ a TRO $or &ac: o$ ,erit.
FUCC $i&ed t!is petition pra#in% $or t!e $o&&o"in% re&ie$, viJ.
7a8 T!at 'pon receipt o$ t!is Petition, a Te,porar# Restrainin% Order 7TRO8 .e iss'ed en5oinin% t!e
i,p&e,entation o$ t!e contract $or t!e Up%radin% o$ t!e San Fernando Airport Pro5ect, P!ase I "it!
respondent ESCCIF as t!e contractorD
7.8 T!at a$ter proper proceedin%, 5'd%,ent .e rendered 7)8 per,anent&# en5oinin% t!e i,p&e,entation o$
t!e contract $or t!e Up%radin% o$ t!e San Fernando Airport Pro5ect, P!ase I "it! respondent ESCCIF as t!e
contractorD 738 dec&arin% t!e re1.iddin% o$ t!e contract $or t!e Up%radin% o$ t!e San Fernando Airport
Pro5ect, P!ase I on 2+ Ma# 322- i&&e%a& and n'&&i$#in% t!e res'&ts t!ereo$D 7(8 ann'&&in% t!e Notice o$ A"ard
dated 3( Ma# 322-, t!e Contract $or t!e Up%radin% o$ t!e San Fernando Airport, P!ase I entered into, .#
and .et"een respondent PPMC and respondent ESCCIF on 3* Ma# 322-, and t!e Notice to Proceed dated
3* Ma# 322-D and 748 directin% respondent S6AC andOor respondent PPMC andOor respondent Att#.
Recadio to reconsider t!e ?Fai&ed? ratin% o$ t!e .id o$ FUCC, open t!e Financia& Proposa& Enve&ope
s'.,itted .# FUCC d'rin% t!e ori%ina& .iddin%, dec&are FUCC as t!e "innin% .idder, and $ort!"it! a"ard
t!e contract to FUCC, as t!e "innin% .idder and .ein% t!e on&# <'a&i$ied contractor $or t!e pro5ect.)3
It asserts t!at S6AC and PPMC co,,itted %rave a.'se o$ discretion in dis<'a&i$#in% its .id, in den#in% its
protest, in cond'ctin% a re1.iddin% and in a"ardin% t!e pro5ect to SCCI. It insists t!at it is t!e on&# <'a&i$ied
contractor $or t!e pro5ect and pra#s t!at it .e dec&ared t!e "innin% .idder.
=e dis,iss t!e petition.
Rep'.&ic Act 7RA8 No. *)+4, or t!e Govern,ent Proc're,ent Re$or, Act, o't&ines t!e proced're to assai&
decisions o$ t!e S6AC in t!is "ise
SEC. 00. Protests on @ecisions o$ t!e 6AC. 1 @ecisions o$ 6AC in a&& sta%es o$ proc're,ent ,a# .e
protested to t!e !ead o$ t!e proc'rin% entit# and s!a&& .e in "ritin%. @ecisions o$ t!e 6AC ,a# .e
protested .# $i&in% a veri$ied position paper and pa#in% a nonre$'nda.&e protest $ee. T!e a,o'nt o$ protest
$ee and t!e periods d'rin% "!ic! t!e protests ,a# .e $i&ed and reso&ved s!a&& .e speci$ied in t!e IRR.
SEC. 0;. Reso&'tion o$ Protests. 1 T!e protests s!a&& .e reso&ved strict&# on t!e .asis o$ records o$ t!e
6AC. Up to a certain a,o'nt speci$ied in t!e IRR, t!e decisions o$ t!e Head o$ t!e Proc'rin% Entit# s!a&&
.e $ina&.
SEC. 0-. Non1interr'ption o$ t!e 6iddin% Process. 1 In no case s!a&& an# protest ta:en $ro, an# decision
treated in t!is Artic&e sta# or de&a# t!e .iddin% process. Protests ,'st $irst .e reso&ved .e$ore an# a"ard is
,ade.
SEC. 0+. Resort to Re%'&ar Co'rtsD Certiorari. 1 Co'rt action ,a# .e resorted on&# a$ter t!e protest
conte,p&ated in t!is Artic&e s!a&& !ave .een co,p&eted. Cases t!at are $i&ed in vio&ation o$ t!e process
speci$ied in t!is Artic&e s!a&& .e dis,issed $or &ac: o$ 5'risdiction. T!e re%iona& tria& co'rt s!a&& !ave
5'risdiction over $ina& decisions o$ t!e !ead o$ t!e proc'rin% entit#. Co'rt actions s!a&& .e %overned .# R'&e
;0 o$ t!e )**- R'&es o$ Civi& Proced're.
T!is provision is "it!o't pre5'dice to an# &a" con$errin% on t!e S'pre,e Co'rt t!e so&e 5'risdiction to
iss'e te,porar# restrainin% orders and in5'nctions re&atin% to In$rastr'ct're Pro5ects o$ Govern,ent.
FUCC c!a&&en%ed t!e decision o$ S6AC in a protest $i&ed "it! Att#. Racadio o$ t!e PPMC "!o a$$ir,ed t!e
S6AC decision. Instead o$ $i&in% a petition $or certiorari, as provided in Section 0+, FUCC $i&ed a petition $or
in5'nction "it! pra#er $or t!e iss'ance o$ a te,porar# restrainin% order andOor pre&i,inar# in5'nction "it!
t!e RTC. FUCC, !o"ever, &ater ,oved $or its dis,issa& t!eoriJin% t!at t!e RTC !ad no 5'risdiction over
petitions $or in5'nction. T!erea$ter, it $i&ed t!is petition $or certiorari "it! t!is Co'rt.
Section 4, R'&e ;0 o$ t!e )**- R'&es o$ Civi& Proced're provides t!at a specia& civi& action $or certiorari
s!a&& .e $i&ed not &ater t!an si9t# 7;28 da#s $ro, t!e notice o$ t!e 5'd%,ent, order or reso&'tion.)( FUCC
ad,itted t!at it received t!e PPMC decision on Marc! 3-, 322-.)4 Ho"ever, it $i&ed t!is petition assai&in%
t!e said decision on&# on C'&# (2, 322-. It is, t!ere$ore, too &ate in t!e da# $or FUCC, via t!is petition, to
assai& t!e PPMC decision "!ic! rated its .id as $ai&ed.
6esides, FUCC vio&ated t!e doctrine o$ 5'dicia& !ierarc!# in $i&in% t!is petition $or certiorari direct&# "it! t!is
Co'rt. Section 0+ is c&ear t!at petitions $or t!e iss'ance o$ a "rit o$ certiorari a%ainst t!e decision o$ t!e
!ead o$ t!e proc'rin% a%enc#, &i:e PPMC, s!o'&d .e $i&ed "it! t!e Re%iona& Tria& Co'rt. Indeed, t!e
5'risdiction o$ t!e RTC over petitions $or certiorari is conc'rrent "it! t!is Co'rt. Ho"ever, s'c!
conc'rrence does not a&&o" 'nrestricted $reedo, o$ c!oice o$ t!e co'rt $or',. A direct invocation o$ t!e
S'pre,e Co'rtQs ori%ina& 5'risdiction to iss'e t!is "rit s!o'&d .e a&&o"ed on&# "!en t!ere are specia& and
i,portant reasons, c&ear&# and speci$ica&&# set o't in t!e petition.)0
In t!e present case, FUCC add'ced no specia& and i,portant reason "!# direct reco'rse to t!is Co'rt
s!o'&d .e a&&o"ed. T!'s, "e rea$$ir, t!e 5'dicia& po&ic# t!at t!is Co'rt "i&& not entertain a direct invocation
o$ its 5'risdiction 'n&ess t!e redress desired cannot .e o.tained in t!e appropriate &o"er co'rts, and
e9ceptiona& and co,pe&&in% circ',stances 5'sti$# t!e resort to t!e e9traordinar# re,ed# o$ a "rit o$
certiorari .
Si,i&ar&#, t!e RTC is t!e proper ven'e to !ear FUCCQs pra#er $or per,anent in5'nction. Un<'estiona.&#,
RA No. +*-0); en5oins a&& co'rts, e9cept t!e S'pre,e Co'rt, $ro, iss'in% an# te,porar# restrainin%
order, pre&i,inar# in5'nction, or pre&i,inar# ,andator# in5'nction a%ainst t!e %overn,ent, or an# o$ its
s'.divisions, o$$icia&s or an# person or entit# to restrain, pro!i.it or co,pe& t!e .iddin% or a"ardin% o$ a
contract or pro5ect o$ t!e nationa& %overn,ent. T!e proscription, !o"ever, covers on&# te,porar#
restrainin% orders or "rits .'t not decisions on t!e ,erits %rantin% per,anent in5'nction. T!ere$ore, "!i&e
co'rts .e&o" are pro!i.ited .# RA No. +-*0 $ro, iss'in% TROs or pre&i,inar# restrainin% orders pendin%
t!e ad5'dication o$ t!e case, said stat'te, !o"ever, does not e9p&icit&# proscri.e t!e iss'ance o$ a
per,anent in5'nction %ranted .# a co'rt o$ &a" arisin% $ro, an ad5'dication o$ a case on t!e ,erits.)-
As "e e9p&ained in A&vareJ v. PICOP Reso'rces, Inc.)+
9 9 9 Rep'.&ic Act No. +*-0 ,ere&# proscri.es t!e iss'ance o$ te,porar# restrainin% orders and "rits o$
pre&i,inar# in5'nction and pre&i,inar# ,andator# in5'nction. EItF cannot, 'nder pain o$ vio&atin% t!e
Constit'tion, deprive t!e co'rts o$ a't!orit# to ta:e co%niJance o$ t!e iss'es raised in t!e principa& action,
as &on% as s'c! action and t!e re&ie$ so'%!t are "it!in t!eir 5'risdiction.
C&ear&#, e9cept $or t!e pra#er $or t!e iss'ance o$ a TRO or pre&i,inar# in5'nction, t!e iss'es raised .#
FUCC and t!e re&ie$ it so'%!t are "it!in t!e 5'risdiction o$ t!e RTC. It is a proced'ra& $a'9 pas $or FUCC to
invo:e t!e ori%ina& 5'risdiction o$ t!is Co'rt over t!e iss'ance o$ a "rit o$ certiorari and per,anent
in5'nction.
In an# event, t!e invitation to .id contains a reservation $or PPMC to re5ect an# .id. It !as .een !e&d t!at
"!ere t!e ri%!t to re5ect is so reserved, t!e &o"est .id, or an# .id $or t!at ,atter, ,a# .e re5ected on a
,ere tec!nica&it#.)* T!e discretion to accept or re5ect .id and a"ard contracts is vested in t!e
%overn,ent a%encies entr'sted "it! t!at $'nction. T!is discretion is o$ s'c! "ide &atit'de t!at t!e Co'rts
"i&& not inter$ere t!ere"it! or direct t!e co,,ittee on .ids to do a partic'&ar act or to en5oin s'c! act "it!in
its prero%atives 'n&ess it is apparent t!at it is 'sed as a s!ie&d to a $ra'd'&ent a"ardD32 or an 'n$airness or
in5'stice is s!o"nD3) or "!en in t!e e9ercise o$ its a't!orit#, it %rave&# a.'ses or e9ceeds its 5'risdiction.
T!'s, "!ere PPMC as advertiser, avai&in% itse&$ o$ t!at ri%!t, opts to re5ect an# or a&& .ids, t!e &osin% .idder
!as no ca'se to co,p&ain or ri%!t to disp'te t!at c!oice, 'n&ess $ra'd'&ent acts, in5'stice, 'n$airness or
%rave a.'se o$ discretion is s!o"n.
FUCC a&&e%es t!at S6AC and PPMC, a&on% "it! t!e SCCI and $ive 708 ot!er .idders, co&&'ded to ri% t!e
res'&ts o$ t!e re1.iddin% so t!at SCCI "o'&d e,er%e as t!e so1ca&&ed &o"est .idder. T!e record, !o"ever,
is .ere$t o$ an# proo$ to s'.stantiate t!e a&&e%ation. Neit!er is t!ere an# evidence o$$ered to esta.&is!
'n$airness, in5'stice, caprice or ar.itrariness on t!e part o$ t!e S6AC or t!e PPMC in a"ardin% t!e
contract to SCCI, t!e &o"est .idder. T!e pres',ption o$ re%'&arit# o$ t!e .iddin% ,'st t!'s .e 'p!e&d.
As "e e9p&ained in CG S',,it Ho&din%s, Inc. v. Co'rt o$ Appea&s33
T!e discretion to accept or re5ect a .id and a"ard contracts is vested in t!e Govern,ent a%encies
entr'sted "it! t!at $'nction. T!e discretion %iven to t!e a't!orities on t!is ,atter is o$ s'c! "ide &atit'de
t!at t!e Co'rts "i&& not inter$ere t!ere"it!, 'n&ess it is apparent t!at it is 'sed as a s!ie&d to a $ra'd'&ent
a"ard 7Ca&andoni v. NARRA, )2+ P!i&. 4+; E)*;2F8. 9 9 9 T!e e9ercise o$ t!is discretion is a po&ic# decision
t!at necessitates prior in<'ir#, investi%ation, co,parison, eva&'ation, and de&i.eration. T!is tas: can .est
.e disc!ar%ed .# t!e Govern,ent a%encies concerned, not .# t!e Co'rts. T!e ro&e o$ t!e Co'rts is to
ascertain "!et!er a .ranc! or instr',enta&it# o$ t!e Govern,ent !as trans%ressed its constit'tiona&
.o'ndaries. 6't t!e Co'rts "i&& not inter$ere "it! e9ec'tive or &e%is&ative discretion e9ercised "it!in t!ose
.o'ndaries. Ot!er"ise, it stra#s into t!e rea&, o$ po&ic# decision1,a:in%.
It is on&# 'pon a c&ear s!o"in% o$ %rave a.'se o$ discretion t!at t!e Co'rts "i&& set aside t!e a"ard o$ a
contract ,ade .# a %overn,ent entit#. Grave a.'se o$ discretion i,p&ies a capricio's, ar.itrar# and
"!i,sica& e9ercise o$ po"er 7Fi&invest Credit Corp. v. Inter,ediate Appe&&ate Co'rt, No. ;0*(0, (2
Septe,.er )*++, );; SCRA )008. T!e a.'se o$ discretion ,'st .e so patent and %ross as to a,o'nt to
an evasion o$ positive d't# or to a virt'a& re$'sa& to per$or, a d't# en5oined .# &a", as to act at a&& in
conte,p&ation o$ &a", "!ere t!e po"er is e9ercised in an ar.itrar# and despotic ,anner .# reason o$
passion or !osti&it# 7Litton Mi&&s, Inc. v. Ga&&eon Trader, Inc., et a&E.F, L142+;-, 3; C'&# )*++, );( SCRA
4+*8.
Accordin%&#, t!ere .ein% no s!o"in% o$ %rave a.'se o$ discretion, FUCC !as no va&id %ro'nd to de,and
ann'&,ent o$ t!e contract .et"een PPMC and SCCI.
=HEREFORE, t!e petition is @ISMISSE@. T!e assai&ed @ecision o$ t!e PPMC is AFFIRME@.
SPOUSES AUGUSTO G. @ACU@AO AN@ OFELIA R. @ACU@AO, Petitioners, v. SECRETARB OF
CUSTICE RAUL M. GONcALES OF THE @EPARTMENT OF CUSTICE, Respondent.
Petitioners residents o$ 6acaca Road, @avao Cit# 1 "ere a,on% t!e investors "!o, Ce&so G. @e&os
An%e&es, Cr. and !is associates in t!e Le%ac# Gro'p o$ Co,panies 7Le%ac# Gro'p8 a&&e%ed&# de$ra'ded
t!ro'%! t!e Le%ac# Gro'pQs ?.'# .ac: a%ree,ent? t!at earned t!e, c!ec: pa#,ents t!at "ere
dis!onored. A$ter t!eir "ritten de,ands $or t!e ret'rn o$ t!eir invest,ents "ent 'n!eeded, t!e# initiated a
n',.er o$ c!ar%es $or s#ndicated esta$a a%ainst @e&os An%e&es, Cr., et a&. in t!e O$$ice o$ t!e Cit#
Prosec'tor o$ @avao Cit# on Fe.r'ar# ;, 322*. T!ree o$ t!e cases "ere doc:eted as NPS @oc:et No. HI1
231INI.12*1A122(0;, @oc:et No. HI1231 INI.12*1C122-03, and @oc:et No. HI1231INI.12*1C122-0(.)STrU]&)
On Marc! )+, 322*, t!e Secretar# o$ C'stice iss'ed @epart,ent o$ C'stice 7@OC8 Order No. )+3 7@O No.
)+38, directin% a&& Re%iona& State Prosec'tors, Provincia& Prosec'tors, and Cit# Prosec'tors to $or"ard a&&
cases a&read# $i&ed a%ainst @e&os An%e&es, Cr., et a&. to t!e Secretariat o$ t!e @OC Specia& Pane& in Mani&a
$or appropriate action.cra&a"&i.rar#
@O No. )+3 reads3STrU]&)
A&& cases a%ainst Ce&so G. de&os An%e&es, Cr., et a&. 'nder Le%ac# Gro'p o$ Co,panies, ,a# .e $i&ed "it!
t!e doc:et section o$ t!e Nationa& Prosec'tion Service, @epart,ent o$ C'stice, Padre Fa'ra, Mani&a and
s!a&& .e $or"arded to t!e Secretariat o$ t!e Specia& Pane& $or assi%n,ent and distri.'tion to pane&
,e,.ers, per @epart,ent Order No. +4 dated Fe.r'ar# )(, 322*.cra&a"&i.rar#
Ho"ever, cases a&read# $i&ed a%ainst Ce&so G. de&os An%e&es, Cr. et a&. o$ Le%ac# %ro'p o$ Co,panies in
#o'r respective o$$ices "it! t!e e9e,ption o$ t!e cases $i&ed in Ca%a#an de Oro Cit# "!ic! is covered .#
Me,orand', dated Marc! 3, 322*, s!o'&d .e $or"arded to t!e Secretariat o$ t!e Specia& Pane& at Roo,
)4*, @epart,ent o$ C'stice, Padre Fa'ra, Mani&a, $or proper disposition.cra&a"&i.rar#
For in$or,ation and %'idance.
P'rs'ant to @O No. )+3, t!e co,p&aints o$ petitioners "ere $or"arded .# t!e O$$ice o$ t!e Cit# Prosec'tor
o$ @avao Cit# to t!e Secretariat o$ t!e Specia& Pane& o$ t!e @OC.(STrU]&)
A%%rieved .# s'c! t'rn o$ events, petitioners !ave direct&# co,e to t!e Co'rt via petition $or certiorari,
pro!i.ition and ,anda,'s, ascri.in% to respondent Secretar# o$ C'stice %rave a.'se o$ discretion in
iss'in% @O No. )+3. T!e# c&ai, t!at @O No. )+3 vio&ated t!eir ri%!t to d'e process, t!eir ri%!t to t!e e<'a&
protection o$ t!e &a"s, and t!eir ri%!t to t!e speed# disposition o$ cases. T!e# insist t!at @O No. )+3 "as
an o.str'ction o$ 5'stice and a vio&ation o$ t!e r'&e a%ainst enact,ent o$ &a"s "it! retroactive
e$$ect.cra&a"&i.rar#
Petitioners a&so c!a&&en%e as 'nconstit'tiona& t!e iss'ance o$ @OC Me,orand', dated Marc! 3, 322*
e9e,ptin% $ro, t!e covera%e o$ @O No. No. )+3 a&& t!e cases $or s#ndicated esta$a a&read# $i&ed and
pendin% in t!e O$$ice o$ t!e Cit# Prosec'tor o$ Ca%a#an de Oro Cit#. T!e# aver t!at @OC Me,orand',
dated Marc! 3, 322* vio&ated t!eir ri%!t to e<'a& protection 'nder t!e Constit'tion.cra&a"&i.rar#
T!e O$$ice o$ t!e So&icitor Genera& 7OSG8, representin% respondent Secretar# o$ C'stice, ,aintains t!e
va&idit# o$ @O No. )+3 and @OC Me,orand', dated Marc! 3, 322*, and pra#s t!at t!e petition .e
dis,issed $or its 'tter &ac: o$ ,erit.cra&a"&i.rar#
Iss'es
T!e $o&&o"in% iss'es are no" to .e reso&ved, to "itc!anro.&esvirt'a&a"&i.rar#
@id petitioners proper&# .rin% t!eir petition $or certiorari, pro!i.ition and ,anda,'s direct&# to t!e Co'rtR
@id respondent Secretar# o$ C'stice co,,it %rave a.'se o$ discretion in iss'in% @O No. )+3R
@id @O No. )+3 and @OC Me,orand', dated Marc! 3, 322* vio&ate petitionersQ constit'tiona&&#
%'aranteed ri%!tsR
R'&in%
T!e petition $or certiorari, pro!i.ition and ,anda,'s, .ein% .ere$t o$ s'.stance and ,erit, is
dis,issed.cra&a"&i.rar#
First&#, petitioners !ave 'nd'&# disre%arded t!e !ierarc!# o$ co'rts .# co,in% direct&# to t!e Co'rt "it!
t!eir petition $or certiorari, pro!i.ition and ,anda,'s "it!o't tenderin% t!erein an# specia&, i,portant or
co,pe&&in% reason to 5'sti$# t!e direct $i&in% o$ t!e petition.cra&a"&i.rar#
=e e,p!asiJe t!at t!e conc'rrence o$ 5'risdiction a,on% t!e S'pre,e Co'rt, Co'rt o$ Appea&s and t!e
Re%iona& Tria& Co'rts to iss'e t!e "rits o$ certiorari, pro!i.ition, ,anda,'s, <'o "arranto, !a.eas corp's
and in5'nction did not %ive petitioners t!e 'nrestricted $reedo, o$ c!oice o$ co'rt $or',.4STrU]&) An 'nd'e
disre%ard o$ t!is po&ic# a%ainst direct resort to t!e Co'rt "i&& ca'se t!e dis,issa& o$ t!e reco'rse. In
6aXWeJ, Cr. v. Concepcion,0STrU]&) "e e9p&ained "!#, to "itc!anro.&esvirt'a&a"&i.rar#
T!e Co'rt ,'st en5oin t!e o.servance o$ t!e po&ic# on t!e !ierarc!# o$ co'rts, and no" a$$ir,s t!at t!e
po&ic# is not to .e i%nored "it!o't serio's conse<'ences. T!e strictness o$ t!e po&ic# is desi%ned to s!ie&d
t!e Co'rt $ro, !avin% to dea& "it! ca'ses t!at are a&so "e&& "it!in t!e co,petence o$ t!e &o"er co'rts,
and t!'s &eave ti,e to t!e Co'rt to dea& "it! t!e ,ore $'nda,enta& and ,ore essentia& tas:s t!at t!e
Constit'tion !as assi%ned to it. T!e Co'rt ,a# act on petitions $or t!e e9traordinar# "rits o$ certiorari,
pro!i.ition and ,anda,'s on&# "!en a.so&'te&# necessar# or "!en serio's and i,portant reasons e9ist
to 5'sti$# an e9ception to t!e po&ic#. T!is "as "!# t!e Co'rt stressed in Ier%ara, Sr. v.
S'e&toc!anro.&esvirt'a&a"&i.rar#
9 9 9. T!e S'pre,e Co'rt is a co'rt o$ &ast resort, and ,'st so re,ain i$ it is to satis$actori&# per$or, t!e
$'nctions assi%ned to it .# t!e $'nda,enta& c!arter and i,,e,oria& tradition. It cannot and s!o'&d not .e
.'rdened "it! t!e tas: o$ dea&in% "it! ca'ses in t!e $irst instance. Its ori%ina& 5'risdiction to iss'e t!e so1
ca&&ed e9traordinar# "rits s!o'&d .e e9ercised on&# "!ere a.so&'te&# necessar# or "!ere serio's and
i,portant reasons e9ist t!ere$or. Hence, t!at 5'risdiction s!o'&d %enera&&# .e e9ercised re&ative to actions
or proceedin%s .e$ore t!e Co'rt o$ Appea&s, or .e$ore constit'tiona& or ot!er tri.'na&s, .odies or a%encies
"!ose acts $or so,e reason or anot!er are not contro&&a.&e .# t!e Co'rt o$ Appea&s. =!ere t!e iss'ance
o$ an e9traordinar# "rit is a&so "it!in t!e co,petence o$ t!e Co'rt o$ Appea&s or a Re%iona& Tria& Co'rt, it
is in eit!er o$ t!ese co'rts t!at t!e speci$ic action $or t!e "ritQs proc're,ent ,'st .e presented. T!is is
and s!o'&d contin'e to .e t!e po&ic# in t!is re%ard, a po&ic# t!at co'rts and &a"#ers ,'st strict&# o.serve.
7E,p!asis s'pp&ied8STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
In Peop&e v. C'ares,a, t!e Co'rt !as a&so a,p&i$ied t!e need $or strict ad!erence to t!e po&ic# o$
!ierarc!# o$ co'rts. T!ere, notin% ?a %ro"in% tendenc# on t!e part o$ &iti%ants and &a"#ers to !ave t!eir
app&ications $or t!e so1ca&&ed e9traordinar# "rits, and so,eti,es even t!eir appea&s, passed 'pon and
ad5'dicated direct&# and i,,ediate&# .# t!e !i%!est tri.'na& o$ t!e &and,? t!e Co'rt !as ca'tioned &a"#ers
and &iti%ants a%ainst ta:in% a direct resort to t!e !i%!est tri.'na&, viJc!anro.&esvirt'a&a"&i.rar#
9 9 9. T!is Co'rtQs ori%ina& 5'risdiction to iss'e "rits o$ certiorari 7as "e&& as pro!i.ition, ,anda,'s, <'o
"arranto, !a.eas corp's and in5'nction8 is not e9c&'sive. It is s!ared .# t!is Co'rt "it! Re%iona& Tria&
Co'rts 9 9 9, "!ic! ,a# iss'e t!e "rit, en$orcea.&e in an# part o$ t!eir respective re%ions. It is a&so s!ared
.# t!is Co'rt, and .# t!e Re%iona& Tria& Co'rt, "it! t!e Co'rt o$ Appea&s 9 9 9, a&t!o'%! prior to t!e
e$$ectivit# o$ 6atas Pa,.ansa 6i&an% )3* on A'%'st )4, )*+), t!e &atterQs co,petence to iss'e t!e
e9traordinar# "rits "as restricted to t!ose ?in aid o$ its appe&&ate 5'risdiction.? T!is conc'rrence o$
5'risdiction is not, !o"ever, to .e ta:en as accordin% to parties see:in% an# o$ t!e "rits an a.so&'te,
'nrestrained $reedo, o$ c!oice o$ t!e co'rt to "!ic! app&ication t!ere$or "i&& .e directed. T!ere is a$ter a&&
a !ierarc!# o$ co'rts. T!at !ierarc!# is deter,inative o$ t!e ven'e o$ appea&s, and s!o'&d a&so serve as a
%enera& deter,inant o$ t!e appropriate $or', $or petitions $or t!e e9traordinar# "rits. A .eco,in% re%ard
$or t!at 5'dicia& !ierarc!# ,ost certain&# indicates t!at petitions $or t!e iss'ance o$ e9traordinar# "rits
a%ainst $irst &eve& 7?in$erior_`d8 co'rts s!o'&d .e $i&ed "it! t!e Re%iona& Tria& Co'rt, and t!ose a%ainst t!e
&atter, "it! t!e Co'rt o$ Appea&s. A direct invocation o$ t!e S'pre,e Co'rtQs ori%ina& 5'risdiction to iss'e
t!ese "rits s!o'&d .e a&&o"ed on&# "!en t!ere are specia& and i,portant reasons t!ere$or, c&ear&# and
speci$ica&&# set o't in t!e petition. T!is is esta.&is!ed po&ic#. It is a po&ic# t!at is necessar# to prevent
inordinate de,ands 'pon t!e Co'rtQs ti,e and attention "!ic! are .etter devoted to t!ose ,atters "it!in
its e9c&'sive 5'risdiction, and to prevent $'rt!er over1cro"din% o$ t!e Co'rtQs doc:et. Indeed, t!e re,ova& o$
t!e restriction on t!e 5'risdiction o$ t!e Co'rt o$ Appea&s in t!is re%ard, s'praG res'&tin% $ro, t!e de&etion
o$ t!e <'a&i$#in% p!rase, ?in aid o$ its appe&&ate 5'risdiction? G "as evident&# intended precise&# to re&ieve
t!is Co'rt pro tanto o$ t!e .'rden o$ dea&in% "it! app&ications $or t!e e9traordinar# "rits "!ic!, .'t $or t!e
e9pansion o$ t!e Appe&&ate Co'rt correspondin% 5'risdiction, "o'&d !ave !ad to .e $i&ed "it!
it.cra&a"&i.rar#
9 9 9 9
T!e Co'rt t!ere$ore c&oses t!is decision "it! t!e dec&aration $or t!e in$or,ation and evidence o$ a&&
concerned, t!at it "i&& not on&# contin'e to en$orce t!e po&ic#, .'t "i&& re<'ire a ,ore strict o.servance
t!ereo$. 7E,p!asis s'pp&ied8STUVUWXWrUY.&UZ[\ U]U^r_` SaUW& &UWSb &U^.rUWrXY
Accordin%&#, ever# &iti%ant ,'st re,e,.er t!at t!e Co'rt is not t!e on&# 5'dicia& $or', $ro, "!ic! to see:
and o.tain e$$ective redress o$ t!eir %rievances. As a r'&e, t!e Co'rt is a co'rt o$ &ast resort, not a co'rt o$
t!e $irst instance. Hence, ever# &iti%ant "!o .rin%s t!e petitions $or t!e e9traordinar# "rits o$ certiorari,
pro!i.ition and ,anda,'s s!o'&d ever .e ,ind$'& o$ t!e po&ic# on t!e !ierarc!# o$ co'rts, t!e o.servance
o$ "!ic! is e9p&icit&# de$ined and en5oined in Section 4 o$ R'&e ;0, R'&es o$ Co'rt,
viJc!anro.&esvirt'a&a"&i.rar#
Section 4. =!en and "!ere petition $i&ed. 1 T!e petition s!a&& .e $i&ed not &ater t!an si9t# 7;28 da#s $ro,
notice o$ t!e 5'd%,ent, order or reso&'tion. In case a ,otion $or reconsideration or ne" tria& is ti,e&# $i&ed,
"!et!er s'c! ,otion is re<'ired or not, t!e si9t# 7;28 da# period s!a&& .e co'nted $ro, notice o$ t!e denia&
o$ t!e said ,otion.cra&a"&i.rar#
T!e petition s!a&& .e $i&ed in t!e S'pre,e Co'rt or, i$ it re&ates to t!e acts or o,issions o$ a &o"er co'rt or
o$ a corporation, .oard, o$$icer or person, in t!e Re%iona& Tria& Co'rt e9ercisin% 5'risdiction over t!e
territoria& area as de$ined .# t!e S'pre,e Co'rt. It ,a# a&so .e $i&ed in t!e Co'rt o$ Appea&s "!et!er or
not t!e sa,e is in t!e aid o$ its appe&&ate 5'risdiction, or in t!e Sandi%an.a#an i$ it is in aid o$ its appe&&ate
5'risdiction. I$ it invo&ves t!e acts or o,issions o$ a <'asi1 5'dicia& a%enc#, 'n&ess ot!er"ise provided .#
&a" or t!ese r'&es, t!e petition s!a&& .e $i&ed in and co%niJa.&e on&# .# t!e Co'rt o$ Appea&s.
In e&ection cases invo&vin% an act or an o,ission o$ a ,'nicipa& or a re%iona& tria& co'rt, t!e petition s!a&&
.e $i&ed e9c&'sive&# "it! t!e Co,,ission on E&ections, in aid o$ its appe&&ate 5'risdiction.;STrU]&)
Second&#, even ass',in% ar%'endo t!at petitionersQ direct resort to t!e Co'rt "as per,issi.&e, t!e petition
,'st sti&& .e dis,issed.cra&a"&i.rar#
T!e "rit o$ certiorari is avai&a.&e on&# "!en an# tri.'na&, .oard or o$$icer e9ercisin% 5'dicia& or <'asi15'dicia&
$'nctions !as acted "it!o't or in e9cess o$ its or !is 5'risdiction, or "it! %rave a.'se o$ discretion
a,o'ntin% to &ac: or e9cess o$ 5'risdiction, and t!ere is no appea&, nor an# p&ain, speed#, and ade<'ate
re,ed# in t!e ordinar# co'rse o$ &a".-STrU]&) ?T!e so&e o$$ice o$ t!e "rit o$ certiorari,? accordin% to @e&os
Santos v. Metropo&itan 6an: and Tr'st Co,pan#+STrU]&)
9 9 9 is t!e correction o$ errors o$ 5'risdiction, "!ic! inc&'des t!e co,,ission o$ %rave a.'se o$ discretion
a,o'ntin% to &ac: o$ 5'risdiction. In t!is re%ard, ,ere a.'se o$ discretion is not eno'%! to "arrant t!e
iss'ance o$ t!e "rit. T!e a.'se o$ discretion ,'st .e %rave, "!ic! ,eans eit!er t!at t!e 5'dicia& or <'asi1
5'dicia& po"er "as e9ercised in an ar.itrar# or despotic ,anner .# reason o$ passion or persona& !osti&it#,
or t!at t!e respondent 5'd%e, tri.'na& or .oard evaded a positive d't#, or virt'a&&# re$'sed to per$or, t!e
d't# en5oined or to act in conte,p&ation o$ &a", s'c! as "!en s'c! 5'd%e, tri.'na& or .oard e9ercisin%
5'dicia& or <'asi15'dicia& po"ers acted in a capricio's or "!i,sica& ,anner as to .e e<'iva&ent to &ac: o$
5'risdiction.
For a specia& civi& action $or certiorari to prosper, t!ere$ore, t!e $o&&o"in% re<'isites ,'st conc'r, na,e&#
7a8 it ,'st .e directed a%ainst a tri.'na&, .oard or o$$icer e9ercisin% 5'dicia& or <'asi15'dicia& $'nctionsD 7.8
t!e tri.'na&, .oard, or o$$icer ,'st !ave acted "it!o't or in e9cess o$ 5'risdiction or "it! %rave a.'se o$
discretion a,o'ntin% to &ac: or e9cess o$ 5'risdictionD and 7c8 t!ere is no appea& nor an# p&ain, speed#, and
ade<'ate re,ed# in t!e ordinar# co'rse o$ &a".* T!e .'rden o$ proo$ &ies on petitioners to de,onstrate
t!at t!e assai&ed order "as iss'ed "it!o't or in e9cess o$ 5'risdiction or "it! %rave a.'se o$ discretion
a,o'ntin% to &ac: or e9cess o$ 5'risdiction.cra&a"&i.rar#
Bet, petitioners !ave not s!o"n a co,p&iance "it! t!e re<'isites. To start "it!, t!e# ,ere&# a&&e%ed t!at
t!e Secretar# o$ C'stice !ad acted "it!o't or in e9cess o$ !is 5'risdiction. A&so, t!e petition did not s!o"
t!at t!e Secretar# o$ C'stice "as an o$$icer e9ercisin% 5'dicia& or <'asi15'dicia& $'nctions. Instead, t!e
Secretar# o$ C'stice "o'&d appear to .e not e9ercisin% an# 5'dicia& or <'asi15'dicia& $'nctions .eca'se !is
<'estioned iss'ances "ere ostensi.&# intended to ens're !is s'.ordinatesQ e$$icienc# and econo,# in t!e
cond'ct o$ t!e pre&i,inar# investi%ation o$ a&& t!e cases invo&vin% t!e Le%ac# Gro'p. T!e $'nction invo&ved
"as p're&# e9ec'tive or ad,inistrative.cra&a"&i.rar#
T!e $act t!at t!e @OC is t!e pri,ar# prosec'tion ar, o$ t!e Govern,ent does not ,a:e it a <'asi15'dicia&
o$$ice or a%enc#. Its pre&i,inar# investi%ation o$ cases is not a <'asi15'dicia& proceedin%. Nor does t!e
@OC e9ercise a <'asi15'dicia& $'nction "!en it revie"s t!e $indin%s o$ a p'.&ic prosec'tor on t!e $indin% o$
pro.a.&e ca'se in an# case. Indeed, in 6a'tista v. Co'rt o$ Appea&s,)2STrU]&) t!e S'pre,e Co'rt !as !e&d
t!at a pre&i,inar# investi%ation is not a <'asi15'dicia& proceedin%, statin%c!anro.&esvirt'a&a"&i.rar#
9 9 9 EtF!e prosec'tor in a pre&i,inar# investi%ation does not deter,ine t!e %'i&t or innocence o$ t!e
acc'sed. He does not e9ercise ad5'dication nor r'&e1,a:in% $'nctions. Pre&i,inar# investi%ation is ,ere&#
in<'isitoria&, and is o$ten t!e on&# ,eans o$ discoverin% t!e persons "!o ,a# .e reasona.&# c!ar%ed "it!
a cri,e and to ena.&e t!e $isca& to prepare !is co,p&aint or in$or,ation. It is not a tria& o$ t!e case on t!e
,erits and !as no p'rpose e9cept t!at o$ deter,inin% "!et!er a cri,e !as .een co,,itted and "!et!er
t!ere is pro.a.&e ca'se to .e&ieve t!at t!e acc'sed is %'i&t# t!ereo$. =!i&e t!e $isca& ,a:es t!at
deter,ination, !e cannot .e said to .e actin% as a <'asi1co'rt, $or it is t!e co'rts, '&ti,ate&#, t!at pass
5'd%,ent on t!e acc'sed, not t!e $isca&.))STrU]&)
T!ere ,a# .e so,e decisions o$ t!e Co'rt t!at !ave c!aracteriJed t!e p'.&ic prosec'torQs po"er to
cond'ct a pre&i,inar# investi%ation as <'asi1 5'dicia& in nat're. Sti&&, t!is c!aracteriJation is tr'e on&# to t!e
e9tent t!at t!e p'.&ic prosec'tor, &i:e a <'asi15'dicia& .od#, is an o$$icer o$ t!e e9ec'tive depart,ent
e9ercisin% po"ers a:in to t!ose o$ a co'rt o$ &a".cra&a"&i.rar#
6't t!e &i,ited si,i&arit# .et"een t!e p'.&ic prosec'tor and a <'asi1 5'dicia& .od# <'ic:&# ends t!ere. For
s're, a <'asi15'dicia& .od# is an or%an o$ %overn,ent ot!er t!an a co'rt o$ &a" or a &e%is&ative o$$ice t!at
a$$ects t!e ri%!ts o$ private parties t!ro'%! eit!er ad5'dication or r'&e1,a:in%D it per$or,s ad5'dicator#
$'nctions, and its a"ards and ad5'dications deter,ine t!e ri%!ts o$ t!e parties co,in% .e$ore itD its
decisions !ave t!e sa,e e$$ect as t!e 5'd%,ents o$ a co'rt o$ &a". In contrast, t!at is not t!e e$$ect
"!enever a p'.&ic prosec'tor cond'cts a pre&i,inar# investi%ation to deter,ine pro.a.&e ca'se in order to
$i&e a cri,ina& in$or,ation a%ainst a person proper&# c!ar%ed "it! t!e o$$ense, or "!enever t!e Secretar#
o$ C'stice revie"s t!e p'.&ic prosec'torQs orders or reso&'tions.cra&a"&i.rar#
Petitioners !ave se&$1st#&ed t!eir petition to .e a&so $or pro!i.ition. Ho"ever, "e do not see !o" t!at can
.e. T!e# !ave not s!o"n in t!eir petition in "!at ,anner and at "!at point t!e Secretar# o$ C'stice, in
!andin% o't t!e assai&ed iss'ances, acted "it!o't or in e9cess o$ !is 5'risdiction, or "it! %rave a.'se o$
discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction. On t!e ot!er !and, "e a&read# indicated "!# t!e
iss'ances "ere not in$ir,ed .# an# de$ect o$ 5'risdiction. Hence, t!e .&atant o,issions o$ t!e petition
trans%ressed Section 3, R'&e ;0 o$ t!e R'&es o$ Co'rt, to "itc!anro.&esvirt'a&a"&i.rar#
Section 3. Petition $or pro!i.ition. G =!en t!e proceedin%s o$ an# tri.'na&, corporation, .oard, o$$icer or
person, "!et!er e9ercisin% 5'dicia&, <'asi15'dicia& or ,inisteria& $'nctions, are "it!o't or in e9cess o$ its or
!is 5'risdiction, or "it! %rave a.'se o$ discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction, and t!ere is
no appea& or an# ot!er p&ain, speed#, and ade<'ate re,ed# in t!e ordinar# co'rse o$ &a", a person
a%%rieved t!ere.# ,a# $i&e a veri$ied petition in t!e proper co'rt, a&&e%in% t!e $acts "it! certaint# and
pra#in% t!at 5'd%,ent .e rendered co,,andin% t!e respondent to desist $ro, $'rt!er proceedin%s in t!e
action or ,atter speci$ied t!erein, or ot!er"ise %rantin% s'c! incidenta& re&ie$s as &a" and 5'stice ,a#
re<'ire.cra&a"&i.rar#
T!e petition s!a&& &i:e"ise .e acco,panied .# a certi$ied tr'e cop# o$ t!e 5'd%,ent, order or reso&'tion
s'.5ect t!ereo$, copies o$ a&& p&eadin%s and doc',ents re&evant and pertinent t!ereto, and a s"orn
certi$ication o$ non1$or', s!oppin% as provided in t!e t!ird para%rap! o$ section (, R'&e 4;. 73a8
Si,i&ar&#, t!e petition co'&d not .e one $or ,anda,'s, "!ic! is a re,ed# avai&a.&e on&# "!en ?an#
tri.'na&, corporation, .oard, o$$icer or person 'n&a"$'&&# ne%&ects t!e per$or,ance o$ an act "!ic! t!e &a"
speci$ica&&# en5oins as a d't# res'&tin% $ro, an o$$ice, tr'st, or station, or 'n&a"$'&&# e9c&'des anot!er $ro,
t!e 'se and en5o#,ent o$ a ri%!t or o$$ice to "!ic! s'c! ot!er is entit&ed, and t!ere is no ot!er p&ain,
speed# and ade<'ate re,ed# in t!e ordinar# co'rse o$ &a", t!e person a%%rieved t!ere.# ,a# $i&e a
veri$ied petition in t!e proper co'rt._`d)3STrU]&) T!e ,ain o.5ective o$ ,anda,'s is to co,pe& t!e
per$or,ance o$ a ,inisteria& d't# on t!e part o$ t!e respondent. P&ain&# eno'%!, t!e "rit o$ ,anda,'s
does not iss'e to contro& or revie" t!e e9ercise o$ discretion or to co,pe& a co'rse o$ cond'ct,)(STrU]&)
"!ic!, it <'ic:&# see,s to 's, "as "!at petitioners "o'&d !ave t!e Secretar# o$ C'stice do in t!eir $avor.
Conse<'ent&#, t!eir petition !as not indicated !o" and "!ere t!e Secretar# o$ C'sticeQs assai&ed
iss'ances e9c&'ded t!e, $ro, t!e 'se and en5o#,ent o$ a ri%!t or o$$ice to "!ic! t!e# "ere
'n<'estiona.&# entit&ed.cra&a"&i.rar#
T!ird&#, t!ere is no <'estion t!at @O No. )+3 en5o#ed a stron% pres',ption o$ its va&idit#. In A6ANA@A
G'ro Part# List v. P'risi,a,)4STrU]&) t!e Co'rt !as e9tended t!e pres',ption o$ va&idit# to &e%is&ative
iss'ances as "e&& as to r'&es and re%'&ations iss'ed .# ad,inistrative a%encies,
sa#in%c!anro.&esvirt'a&a"&i.rar#
Ad,inistrative re%'&ations enacted .# ad,inistrative a%encies to i,p&e,ent and interpret t!e &a" "!ic!
t!e# are entr'sted to en$orce !ave t!e $orce o$ &a" and are entit&ed to respect. S'c! r'&es and re%'&ations
parta:e o$ t!e nat're o$ a stat'te and are 5'st as .indin% as i$ t!e# !ave .een "ritten in t!e stat'te itse&$.
As s'c!, t!e# !ave t!e $orce and e$$ect o$ &a" and en5o# t!e pres',ption o$ constit'tiona&it# and &e%a&it#
'nti& t!e# are set aside "it! $ina&it# in an appropriate case .# a co,petent co'rt.)0STrU]&)
@O No. )+3 "as iss'ed p'rs'ant to @epart,ent Order No. +4 t!at t!e Secretar# o$ C'stice !ad
pro,'&%ated to %overn t!e per$or,ance o$ t!e ,andate o$ t!e @OC to ?ad,inister t!e cri,ina& 5'stice
s#ste, in accordance "it! t!e accepted processes t!ereo$_`d);STrU]&) as e9pressed in Rep'.&ic Act No.
)22-) 7Prosec'tion Service Act o$ 32)28 and Section (, C!apter I, Tit&e III and Section ), C!apter I, Tit&e
III o$ 6oo: II o$ E9ec'tive Order 3*3 7Ad,inistrative Code o$ )*+-8.cra&a"&i.rar#
To overco,e t!is stron% pres',ption o$ va&idit# o$ t!e <'estioned iss'ances, it .eca,e inc',.ent 'pon
petitioners to prove t!eir 'nconstit'tiona&it# and inva&idit#, eit!er .# s!o"in% t!at t!e Ad,inistrative Code
o$ )*+- did not a't!oriJe t!e Secretar# o$ C'stice to iss'e @O No. )+3, or .# de,onstratin% t!at @O No.
)+3 e9ceeded t!e .o'nds o$ t!e Ad,inistrative Code o$ )*+- and ot!er pertinent &a"s. T!e# did not do
so. T!e# ,'st $'rt!er s!o" t!at t!e per$or,ance o$ t!e @OCQs $'nctions 'nder t!e Ad,inistrative Code o$
)*+- and ot!er pertinent &a"s did not ca&& $or t!e i,positions &aid do"n .# t!e assai&ed iss'ances. T!at
"as not tr'e !ere, $or @O No )+3 did not deprive petitioners in an# de%ree o$ t!eir ri%!t to see: redress $or
t!e a&&e%ed "ron% done a%ainst t!e, .# t!e Le%ac# Gro'p. Instead, t!e iss'ances "ere desi%ned to
assist petitioners and ot!ers &i:e t!e, e9pedite t!e prosec'tion, i$ "arranted 'nder t!e &a", o$ a&& t!ose
responsi.&e $or t!e "ron% t!ro'%! t!e creation o$ t!e specia& pane& o$ state prosec'tors and prosec'tion
attorne#s in order to cond'ct a nation"ide and co,pre!ensive pre&i,inar# investi%ation and prosec'tion
o$ t!e cases. T!ere.#, t!e Secretar# o$ C'stice did not act ar.itrari&# or oppressive&# a%ainst
petitioners.cra&a"&i.rar#
Fo'rt!&#, petitioners attac: t!e e9e,ption $ro, t!e conso&idation decreed in @O No. )+3 o$ t!e cases $i&ed
or pendin% in t!e O$$ice o$ t!e Cit# Prosec'tor o$ Ca%a#an de Oro Cit#, c&ai,in% t!at t!e e9e,ption
traversed t!e constit'tiona& %'arant# in t!eir $avor o$ t!e e<'a& protection o$ &a".)-STrU]&)
T!e e9e,ption is covered .# t!e assai&ed @OC Me,orand', dated Marc! 3, 322*, to
"itc!anro.&esvirt'a&a"&i.rar#
It !as co,e to t!e attention o$ t!e 'ndersi%ned t!at cases $or s#ndicated esta$a "ere $i&ed "it! #o'r o$$ice
a%ainst o$$icers o$ t!e Le%ac# Gro'p o$ Co,panies. Considerin% t!e distance o$ t!e p&ace o$ co,p&ainants
t!erein to Mani&a, #o'r O$$ice is !ere.# e9e,pted $ro, t!e directive previo's&# iss'ed .# t!e 'ndersi%ned
re<'irin% prosec'tion o$$ices to $or"ard t!e records o$ a&& cases invo&vin% Le%ac# Gro'p o$ Co,panies to
t!e Tas: Force.cra&a"&i.rar#
Anent t!e $ore%oin%, #o' are !ere.# directed to cond'ct pre&i,inar# investi%ation o$ a&& cases invo&vin% t!e
Le%ac# Gro'p o$ Co,panies $i&ed in #o'r o$$ice "it! dispatc! and to $i&e t!e correspondin% in$or,ations i$
evidence "arrants and to prosec'te t!e sa,e in co'rt.
PetitionersQ attac: deserves no consideration. T!e e<'a& protection c&a'se o$ t!e Constit'tion does not
re<'ire t!e 'niversa& app&ication o$ t!e &a"s to a&& persons or t!in%s "it!o't distinctionD "!at it re<'ires is
si,p&# e<'a&it# a,on% e<'a&s as deter,ined accordin% to a va&id c&assi$ication.)+STrU]&)
Hence, t!e Co'rt !as a$$ir,ed t!at i$ a &a" neit!er .'rdens a $'nda,enta& ri%!t nor tar%ets a s'spect
c&ass, t!e c&assi$ication stands as &on% as it .ears a rationa& re&ations!ip to so,e &e%iti,ate %overn,ent
end.)*STrU]&)
T!at is t!e sit'ation !ere. In iss'in% t!e assai&ed @OC Me,orand', dated Marc! 3, 322*, t!e Secretar#
o$ C'stice too: into acco'nt t!e re&ative distance .et"een Ca%a#an de Oro, "!ere ,an# co,p&ainants
a%ainst t!e Le%ac# Gro'p resided, and Mani&a, "!ere t!e pre&i,inar# investi%ations "o'&d .e cond'cted
.# t!e specia& pane&. He a&so too: into acco'nt t!at t!e cases !ad a&read# .een $i&ed in t!e Cit#
Prosec'torQs O$$ice o$ Ca%a#an de Oro at t!e ti,e !e iss'ed @O No. )+3. Given t!e considera.&e n',.er
o$ co,p&ainants residin% in Ca%a#an de Oro Cit#, t!e Secretar# o$ C'stice "as $'&&# 5'sti$ied in e9c&'din%
t!e cases co,,enced in Ca%a#an de Oro $ro, t!e a,.it o$ @O No. )+3. T!e c&assi$ication ta:en into
consideration .# t!e Secretar# o$ C'stice "as rea&&# va&id. Res'&tant&#, petitioners co'&d not in<'ire into t!e
"isdo, .e!ind t!e e9e,ption 'pon t!e %ro'nd t!at t!e non1 app&ication o$ t!e e9e,ption to t!e, "o'&d
ca'se t!e, so,e inconvenience.cra&a"&i.rar#
Fi$t!&#, petitioners contend t!at @O No. )+3 vio&ated t!eir ri%!t to t!e speed# disposition o$ cases
%'aranteed .# t!e Constit'tion. T!e# posit t!at t!ere "o'&d .e considera.&e de&a# in t!e reso&'tion o$ t!eir
cases t!at "o'&d de$inite&# .e ?a $&a%rant trans%ression o$ petitionersQ constit'tiona& ri%!ts to speed#
disposition o$ t!eir cases._`d32STrU]&)
=e cannot $avor t!eir contention.cra&a"&i.rar#
In T!e O,.'ds,an v. C'rado,3)STrU]&) t!e Co'rt !as c&ari$ied t!at a&t!o'%! t!e Constit'tion %'arantees
t!e ri%!t to t!e speed# disposition o$ cases, s'c! speed# disposition is a $&e9i.&e concept. To proper&#
de$ine t!at concept, t!e $acts and circ',stances s'rro'ndin% eac! case ,'st .e eva&'ated and ta:en into
acco'nt. T!ere occ'rs a vio&ation o$ t!e ri%!t to a speed# disposition o$ a case on&# "!en t!e proceedin%s
are attended .# ve9atio's, capricio's, and oppressive de&a#s, or "!en 'n5'sti$ied postpone,ents o$ t!e
tria& are so'%!t and sec'red, or "!en, "it!o't ca'se or 5'sti$ia.&e ,otive, a &on% period o$ ti,e is a&&o"ed
to e&apse "it!o't t!e part# !avin% !is case tried.33STrU]&) It is co%ent to ,ention t!at a ,ere ,at!e,atica&
rec:onin% o$ t!e ti,e invo&ved is not deter,inant o$ t!e concept.3(STrU]&)
T!e conso&idation o$ t!e cases a%ainst @e&os An%e&es, Cr., et a&. "as ordered o.vio's&# to o.tain
e9peditio's 5'stice $or t!e parties "it! t!e &east cost and ve9ation to t!e,. Inas,'c! as t!e cases $i&ed
invo&ved si,i&ar or re&ated <'estions to .e dea&t "it! d'rin% t!e pre&i,inar# investi%ation, t!e Secretar# o$
C'stice ri%!t&# $o'nd t!e conso&idation o$ t!e cases to .e t!e ,ost $easi.&e ,eans o$ pro,otin% t!e
e$$icient 'se o$ p'.&ic reso'rces and o$ !avin% a co,pre!ensive investi%ation o$ t!e cases.cra&a"&i.rar#
On t!e ot!er !and, "e do not i%nore t!e possi.i&it# t!at t!ere "o'&d .e ,ore cases reac!in% t!e @OC in
addition to t!ose a&read# .ro'%!t .# petitioners and ot!er parties. Bet, an# de&a#s in petitionersQ cases
occasioned .# s'c! ot!er and s'.se<'ent cases s!o'&d not "arrant t!e inva&idation o$ @O No. )+3. T!e
Constit'tion pro!i.its on&# t!e de&a#s t!at are 'nreasona.&e, ar.itrar# and oppressive, and tend to render
ri%!ts n'%ator#.34STrU]&) In $ine, "e see neit!er 'nd'e de&a#s, nor an# vio&ation o$ t!e ri%!t o$ petitioners
to t!e speed# disposition o$ t!eir cases.cra&a"&i.rar#
Si9t!&#, petitioners assert t!at t!e assai&ed iss'ances s!o'&d cover on&# $'t're cases a%ainst @e&os
An%e&es, Cr., et a&., not t!ose a&read# .ein% investi%ated. T!e# ,aintain t!at @O No. )+3 "as iss'ed in
vio&ation o$ t!e pro!i.ition a%ainst passin% &a"s "it! retroactive e$$ect.cra&a"&i.rar#
PetitionersQ assertion is .ase&ess.cra&a"&i.rar#
As a %enera& r'&e, &a"s s!a&& !ave no retroactive e$$ect. Ho"ever, e9ceptions e9ist, and one s'c!
e9ception concerns a &a" t!at is proced'ra& in nat're. T!e reason is t!at a re,edia& stat'te or a stat'te
re&atin% to re,edies or ,odes o$ proced're does not create ne" ri%!ts or ta:e a"a# vested ri%!ts .'t on&#
operates in $'rt!erance o$ t!e re,ed# or t!e con$ir,ation o$ a&read# e9istin% ri%!ts.30STrU]&) A stat'te or
r'&e re%'&atin% t!e proced're o$ t!e co'rts "i&& .e constr'ed as app&ica.&e to actions pendin% and
'ndeter,ined at t!e ti,e o$ its passa%e. A&& proced'ra& &a"s are retroactive in t!at sense and to t!at
e9tent. T!e retroactive app&ication is not vio&ative o$ an# ri%!t o$ a person "!o ,a# $ee& adverse&# a$$ected,
$or, veri&#, no vested ri%!t %enera&&# attac!es to or arises $ro, proced'ra& &a"s.cra&a"&i.rar#
Fina&&#, petitioners !ave averred .'t $ai&ed to esta.&is! t!at @O No. )+3 constit'ted o.str'ction o$ 5'stice.
T!is %ro'nd o$ t!e petition, .ein% 'ns'.stantiated, "as 'n$o'nded.cra&a"&i.rar#
Nonet!e&ess, it is not a,iss to reiterate t!at t!e a't!orit# o$ t!e Secretar# o$ C'stice to ass',e 5'risdiction
over ,atters invo&vin% t!e investi%ation o$ cri,es and t!e prosec'tion o$ o$$enders is $'&&# sanctioned .#
&a". To"ards t!at end, t!e Secretar# o$ C'stice e9ercises contro& and s'pervision over a&& t!e re%iona&,
provincia&, and cit# prosec'tors o$ t!e co'ntr#D !as .road discretion in t!e disc!ar%e o$ t!e @OCQs
$'nctionsD and ad,inisters t!e @OC and its ad5'nct o$$ices and a%encies .# pro,'&%atin% r'&es and
re%'&ations to carr# o't t!eir o.5ectives, po&icies and $'nctions.cra&a"&i.rar#
Conse<'ent&#, 'n&ess and 'nti& t!e Secretar# o$ C'stice acts .e#ond t!e .o'nds o$ !is a't!orit#, or
ar.itrari&#, or "!i,sica&&#, or oppressive&#, an# person or entit# "!o ,a# $ee& to .e t!ere.# a%%rieved or
adverse&# a$$ected s!o'&d !ave no ri%!t to ca&& $or t!e inva&idation or n'&&i$ication o$ t!e r'&es and
re%'&ations iss'ed .#, as "e&& as ot!er actions ta:en .# t!e Secretar# o$ C'stice.cra&a"&i.rar#
=HEREFORE, t!e Co'rt @ISMISSES t!e o,ni.'s petition $or certiorari, pro!i.ition, and ,anda,'s $or
&ac: o$ ,erit.

FIRST LEPANTO CERAMICS, INC., Petitioner, v. THE COURT OF APPEALS and MARI=ASA
MANUFACTURING, INC., Respondents.
6ro'%!t to $ore in t!is petition $or certiorari and pro!i.ition "it! app&ication $or pre&i,inar# in5'nction is t!e
nove& <'estion o$ "!ere and in "!at ,anner appea&s $ro, decisions o$ t!e 6oard o$ Invest,ents 76OI8
s!o'&d .e $i&ed. A t!oro'%! scr'tin# o$ t!e con$&ictin% provisions o$ 6atas Pa,.ansa 6i&an% )3*, ot!er"ise
:no"n as t!e ?C'diciar# Reor%aniJation Act o$ )*+2,? E9ec'tive Order No. 33;, a&so :no"n as t!e
O,ni.'s Invest,ents Code o$ )*+- and S'pre,e Co'rt Circ'&ar No. )1*) is, t!'s, ca&&ed $or.
6rie$&#, t!is <'estion o$ &a" arose "!en 6OI, in its decision dated @ece,.er )2, )**3 in 6OI Case No. *31
220 %ranted petitioner First Lepanto Cera,ics, Inc./s app&ication to a,end its 6OI certi$icate o$ re%istration
.# c!an%in% t!e scope o$ its re%istered prod'ct $ro, ?%&aJed $&oor ti&es? to ?cera,ic ti&es.? Event'a&&#,
oppositor Mari"asa $i&ed a ,otion $or reconsideration o$ t!e said 6OI decision "!i&e oppositor Fi&1Hispano
Cera,ics, Inc. did not ,ove to reconsider t!e sa,e nor appea& t!ere$ro,. Soon re.'$$ed in its .id $or
reconsideration, Mari"asa $i&ed a petition $or revie" "it! respondent Co'rt o$ Appea&s p'rs'ant to Circ'&ar
)1*).c!anro.&es.co,cra&a"red
Actin% on t!e petition, respondent co'rt re<'ired t!e 6OI and petitioner to co,,ent on Mari"asa/s
petition and to s!o" ca'se "!# no in5'nction s!o'&d iss'e. On Fe.r'ar# )-, )**(, respondent co'rt
te,porari&# restrained t!e 6OI $ro, i,p&e,entin% its decision. T!is te,porar# restrainin% order &apsed .#
its o"n ter,s on Marc! *, )**(, t"ent# 7328 da#s a$ter its iss'ance, "it!o't respondent co'rt iss'in% an#
pre&i,inar# in5'nction.
On Fe.r'ar# 34, )**(, petitioner $i&ed a ?Motion to @is,iss Petition and to Li$t Restrainin% Order? on t!e
%ro'nd t!at respondent co'rt !as no appe&&ate 5'risdiction over 6OI Case No. *31220, t!e sa,e .ein%
e9c&'sive&# vested "it! t!e S'pre,e Co'rt p'rs'ant to Artic&e +3 o$ t!e O,ni.'s Invest,ents Code o$
)*+-.
On Ma# 30, )**(, respondent co'rt denied petitioner/s ,otion to dis,iss, t!e dispositive portion o$ "!ic!
reads as $o&&o"s5%cc!anro.&es.co,.p!
?=HEREFORE, private respondent/s ,otion to dis,iss t!e petition is !ere.# @ENIE@, $or &ac: o$ ,erit.
?Private respondent is !ere.# %iven an ine9tendi.&e period o$ ten 7)28 da#s $ro, receipt !ereo$ "it!in
"!ic! to $i&e its co,,ent to t!e petition.? )
Upon receipt o$ a cop# o$ t!e a.ove reso&'tion on C'ne 4, )**(, petitioner decided not to $i&e an# ,otion
$or reconsideration as t!e <'estion invo&ved is essentia&&# &e%a& in nat're and i,,ediate&# $i&ed a petition
$or certiorari and pro!i.ition .e$ore t!is Co'rt.c!anro.&es &a" &i.rar# red
Petitioner posits t!e vie" t!at respondent co'rt acted "it!o't or in e9cess o$ its 5'risdiction in iss'in% t!e
<'estioned reso&'tion o$ Ma# 30, )**(, $or t!e $o&&o"in% reasons5%cc!anro.&es.co,.p!
?I. Respondent co'rt !as no 5'risdiction to entertain Mari"asa/s appea& $ro, t!e 6OI/s decision
in 6OI Case No. *31220, "!ic! !as .eco,e $ina&.
II. T!e appe&&ate 5'risdiction con$erred .# stat'te 'pon t!is Honora.&e Co'rt cannot .e
a,ended or s'perseded .# Circ'&ar No. )1*).? 3
Petitioner t!en conc&'des t!at5%cc!anro.&es.co,.p!
?III. Mari"asa !as &ost it ri%!t to appea& . . . in t!is case.? (
Petitioner ar%'es t!at t!e C'diciar# Reor%aniJation Act o$ )*+2 or 6atas Pa,.ansa 6i&an% )3* and
Circ'&ar )1*), ?Prescri.in% t!e R'&es Governin% Appea&s to t!e Co'rt o$ Appea&s $ro, a Fina& Order or
@ecision o$ t!e Co'rt o$ Ta9 Appea&s and A'asi1C'dicia& A%encies? cannot .e t!e .asis o$ Mari"asa/s
appea& to respondent co'rt .eca'se t!e proced're $or appea& &aid do"n t!erein r'ns contrar# to Artic&e +3
o$ E.O. 33;, "!ic! provides t!at appea&s $ro, decisions or orders o$ t!e 6OI s!a&& .e $i&ed direct&# "it! t!is
Co'rt, to "it5%cc!anro.&es.co,.p!
?C'dicia& re&ie$. > A&& orders or decisions o$ t!e 6oard 7o$ Invest,ents8 in cases invo&vin% t!e provisions o$
t!is Code s!a&& i,,ediate&# .e e9ec'tor#. No appea& $ro, t!e order or decision o$ t!e 6oard .# t!e part#
adverse&# a$$ected s!a&& sta# s'c! an order or decisionD Provided, t!at a&& appea&s s!a&& .e $i&ed direct&#
"it! t!e S'pre,e Co'rt "it!in t!irt# 7(28 da#s $ro, receipt order or decision.?cra&a" virt'a)a" &i.rar#
On t!e ot!er !and, Mari"asa ,aintains t!at "!atever ?o.vio's inconsistenc#? or ?irreconci&a.&e
rep'%nanc#? t!ere ,a# !ave .een .et"een 6.P. )3* and Artic&e +3 o$ E.O. 33; on t!e <'estion o$ ven'e
$or appea& !as a&read# .een reso&ved .# Circ'&ar )1*) o$ t!e S'pre,e Co'rt, "!ic! "as pro,'&%ated on
Fe.r'ar# 3-, )**) or $o'r 748 #ears a$ter E.O. 33; "as enacted.
Sections ), 3 and ( o$ Circ'&ar )1*), is !erein <'oted .e&o"5%cc!anro.&es.co,.p!
?). Scope. > T!ese r'&es s!a&& app&# to appea&s $ro, $ina& orders or decisions o$ t!e Co'rt o$
Ta9 Appea&s. T!e# s!a&& a&so app&# to appea&s $ro, $ina& orders or decisions o$ an# <'asi15'dicia& a%enc#
$ro, "!ic! an appea& is no" a&&o"ed .# stat'te to t!e Co'rt o$ Appea&s or t!e S'pre,e Co'rt. A,on%
t!ese a%encies are t!e Sec'rities and E9c!an%e Co,,ission, Land Re%istration A't!orit#, Socia&
Sec'rit# Co,,ission, Civi& Aerona'tics 6oard, 6'rea' o$ Patents, Trade,ar:s and Tec!no&o%# Trans$er,
Nationa& E&ectri$ication Ad,inistration, Ener%# Re%'&ator# 6oard, Nationa& Te&eco,,'nications
Co,,ission, Secretar# o$ A%rarian Re$or, and Specia& A%rarian Co'rts 'nder RA ;;0-, Govern,ent
Service Ins'rance S#ste,, E,p&o#ees Co,pensation Co,,ission, A%ric'&t'ra& Inventions 6oard,
Ins'rance Co,,ission and P!i&ippine Ato,ic Ener%# Co,,ission.c!anro.&es.co,.p! virt'a& &a" &i.rar#
?3. Cases not covered. > T!ese r'&es s!a&& not app&# to decisions and inter&oc'tor# orders o$
t!e Nationa& La.or Re&ations Co,,ission or t!e Secretar# o$ La.or and E,p&o#,ent 'nder t!e La.or
Code o$ t!e P!i&ippines, t!e Centra& 6oard o$ Assess,ent Appea&s, and ot!er <'asi15'dicia& a%encies $ro,
"!ic! no appea& to t!e co'rts is prescri.ed or a&&o"ed .# stat'te.
?(. =!o ,a# appea& and "!ere to appea&. > T!e appea& o$ a part# a$$ected .# a $ina& order,
decision, or 5'd%,ent o$ t!e Co'rt o$ Ta9 Appea&s or o$ a <'asi15'dicia& a%enc# s!a&& .e ta:en to t!e Co'rt
o$ Appea&s "it!in t!e period and in t!e ,anner !erein provided, "!et!er t!e appea& invo&ves <'estions o$
$act or o$ &a" or ,i9ed <'estions o$ $act and &a". Fro, $ina& 5'd%,ents or decisions o$ t!e Co'rt o$
Appea&s, t!e a%%rieved part# ,a# appea& .# certiorari to t!e S'pre,e Co'rt as provided in R'&e 40 o$ t!e
R'&es o$ Co'rt.?cra&a" virt'a)a" &i.rar#
It ,a# .e ca&&ed t!at Section *7(8 o$ 6.P. )3* vests appe&&ate 5'risdiction over a&& $ina& 5'd%,ents,
decisions, reso&'tions, orders or a"ards o$ <'asi15'dicia& a%encies on t!e Co'rt o$ Appea&s, to
"it5%cc!anro.&es.co,.p!
?7(8 E9c&'sive appe&&ate 5'risdiction over a&& $ina& 5'd%,ents, decisions, reso&'tions, orders,
a"ards o$ Re%iona& Tria& Co'rts and <'asi15'dicia& a%encies, instr',enta&ities, .oards or co,,issions,
e9cept t!ose $a&&in% "it!in t!e appe&&ate 5'risdiction o$ t!e S'pre,e Co'rt in accordance "it! t!e
Constit'tion, t!e provisions o$ t!is Act, and o$ s'.para%rap! 7)8 o$ t!e t!ird para%rap! and s'.para%rap!
748 o$ t!e $o'rt! para%rap! o$ Section )- o$ t!e C'diciar# Act o$ )*4+.
T!e Inter,ediate Appe&&ate Co'rt s!a&& !ave t!e po"er to tr# cases and cond'ct !earin%s, receive
evidence and per$or, an# and a&& acts necessar# to reso&ve $act'a& iss'es raised in cases $a&&in% "it!in its
ori%ina& and appe&&ate 5'risdiction, inc&'din% t!e po"er to %rant and cond'ct ne" tria&s or $'rt!er
proceedin%s.
T!ese provisions s!a&& not app&# to decisions and inter&oc'tor# orders iss'ed 'nder t!e La.or Code o$ t!e
P!i&ippines and .# t!e Centra& 6oard o$ Assess,ent Appea&s.?cra&a" virt'a)a" &i.rar#
C&ear&# evident in t!e a$ore<'oted provision o$ 6.P. )3* is t!e &a'da.&e o.5ective o$ providin% a 'ni$or,
proced're o$ appea& $ro, decisions o$ a&& <'asi15'dicia& a%encies $or t!e .ene$it o$ t!e .enc! and t!e .ar.
E<'a&&# &a'da.&e is t!e t"in o.5ective o$ 6.P. )3* o$ 'nc&o%%in% t!e doc:et o$ t!is Co'rt to ena.&e it to
attend to ,ore i,portant tas:s, "!ic! in t!e "ords o$ @ean Iicente G. Sinco, as <'oted in o'r decision in
Conde v. Inter,ediate Appe&&ate Co'rt 4 is ?&ess concerned "it! t!e decisions o$ cases t!at .e%in and end
"it! t!e transient ri%!ts and o.&i%ations o$ partic'&ar individ'a&s .'t is ,ore intert"ined "it! t!e direction o$
nationa& po&icies, ,o,ento's econo,ic and socia& pro.&e,s, t!e de&i,itation o$ %overn,enta& a't!orit#
and its i,pact 'pon $'nda,enta& ri%!ts.? c!anro.&es virt'a&a"&i.rar# c!anro.&es.co,c!anro.&es.co,.p!
In @eve&op,ent 6an: o$ t!e P!i&ippines v. Co'rt o$ Appea&s, 0 t!is Co'rt noted t!at 6.P. )3* did not dea&
on&# "it! ?c!an%es in t!e r'&es on proced'res? and t!at not on&# "as t!e Co'rt o$ Appea&s reor%aniJed,
.'t its 5'risdiction and po"ers "ere a&so .roadened .# Section * t!ereo$. E9p&ainin% t!e c!an%es, t!is
Co'rt said5%cc!anro.&es.co,.p!
?. . . Its ori%ina& 5'risdiction to iss'e "rits o$ ,anda,'s, pro!i.ition, certiorari and !a.eas corp's, "!ic!
t!ereto$ore co'&d .e e9ercised on&# in aid o$ its appe&&ate 5'risdiction, "as e9panded .# 7)8 e9tendin% it so
as to inc&'de t!e "rit o$ <'o "arranto, and a&so 738 e,po"erin% it to iss'e a&& said e9traordinar# "rits
h"!et!er or not in aid o$ its appe&&ate 5'risdiction./ Its appe&&ate 5'risdiction "as a&so e9tended to cover not
on&# $ina& 5'd%,ents o$ Re%iona& Tria& Co'rts, .'t a&so ha&& $ina& 5'd%,ents, decisions, reso&'tions, orders or
a"ards o$ . . . <'asi15'dicia& a%encies, instr',enta&ities, .oards or co,,issions, e9cept t!ose $a&&in% "it!in
t!e appe&&ate 5'risdiction o$ t!e S'pre,e Co'rt in accordance "it! t!e Constit'tion, t!e provisions o$ t!is
Act, and o$ s'.1para%rap! 7)8 o$ t!e t!ird para%rap! and s'.para%rap! 748 o$ t!e $o'rt! para%rap! o$
Section )- o$ t!e C'diciar# Act o$ )*4+,/ it .ein% note"ort!# in t!is connection t!at t!e te9t o$ t!e &a" is
.road and co,pre!ensive, and t!e e9p&icit&# stated e9ceptions !ave no re$erence "!atever to t!e Co'rt o$
Ta9 Appea&s. Indeed, t!e intention to e9pand t!e ori%ina& and appe&&ate 5'risdiction o$ t!e Co'rt o$ Appea&s
over <'asi15'dicia& a%encies, instr',enta&ities, .oards or co,,issions, is $'rt!er stressed .# t!e &ast
para%rap! o$ Section * "!ic! e9c&'des $ro, its provisions, on&# t!e hdecisions and inter&oc'tor# orders
iss'ed 'nder t!e La.or Code o$ t!e P!i&ippines and .# t!e Centra& 6oard o$ Assess,ent Appea&s.? ;
Ho"ever, it cannot .e denied t!at t!e &a",a:in% s#ste, o$ t!e co'ntr# is $ar $ro, per$ect. @'rin% t!e
transitiona& period a$ter t!e co'ntr# e,er%ed $ro, t!e Marcos re%i,e, t!e &a",a:in% po"er "as &od%ed
on t!e E9ec'tive @epart,ent. T!e o.vio's &ac: o$ de&i.eration in t!e dra$tin% o$ o'r &a"s co'&d per!aps
e9p&ain t!e deviation o$ so,e o$ o'r &a"s $ro, t!e %oa& o$ 'ni$or, proced're "!ic! 6.P. )3* so'%!t to
pro,ote.c!anro.&es &a" &i.rar#
In e9e,p&i %ratia, E9ec'tive Order No. 33; or t!e O,ni.'s Invest,ents Code o$ )*+- provides t!at a&&
appea&s s!a&& .e $i&ed direct&# "it! t!e S'pre,e Co'rt "it!in t!irt# 7(28 da#s $ro, receipt o$ t!e order or
decision.
Note"ort!# is t!e $act t!at present&#, t!e S'pre,e Co'rt entertains ordinar# appea&s on&# $ro, decisions
o$ t!e Re%iona& Tria& Co'rts in cri,ina& cases "!ere t!e pena&t# i,posed is rec&'sion perpet'a or !i%!er.
C'd%,ents o$ re%iona& tria& co'rts ,a# .e appea&ed to t!e S'pre,e Co'rt on&# .# petition $or revie" on
certiorari "it!in $i$teen 7)08 da#s $ro, notice o$ 5'd%,ent in accordance "it! R'&e 40 o$ t!e R'&es o$ Co'rt
in re&ation to Section )- o$ t!e C'diciar# Act o$ )*4+, as a,ended, t!is .ein% t!e c&ear intend,ent o$ t!e
provision o$ t!e Interi, R'&es t!at? 7a8ppea&s to t!e S'pre,e Co'rt s!a&& .e ta:en .# petition $or certiorari
"!ic! s!a&& .e %overned .# R'&e 40 o$ t!e R'&es o$ Co'rt.? T!'s, t!e ri%!t o$ appea& provided in E.O. 33;
"it!in t!irt# 7(28 da#s $ro, receipt o$ t!e order or decision is c&ear&# not in consonance "it! t!e present
proced're .e$ore t!is Co'rt. On&# decisions, orders or r'&in%s o$ a Constit'tiona& Co,,ission 7Civi&
Service Co,,ission, Co,,ission on E&ections or Co,,ission on A'dit8, ,a# .e .ro'%!t to t!e S'pre,e
Co'rt on ori%ina& petitions $or certiorari 'nder R'&e ;0 .# t!e a%%rieved part# "it!in t!irt# 7(28 da#s $or,
receipt o$ a cop# t!ereo$. -
Under t!is conte9t'a& .ac:drop, t!is Co'rt, p'rs'ant to its Constit'tiona& po"er 'nder Section 0708, Artic&e
IIII o$ t!e )*+- Constit'tion to pro,'&%ate r'&es concernin% p&eadin%, practice and proced're in a&& co'rts,
and .# "a# o$ i,p&e,entation o$ 6.P. )3*, iss'ed Circ'&ar )1*) prescri.in% t!e r'&es %overnin% appea&s to
t!e Co'rt o$ Appea&s $ro, $ina& orders or decisions o$ t!e Co'rt o$ Ta9 Appea&s and <'asi15'dicia& a%encies
to e&i,inate 'nnecessar# contradictions and con$'sin% r'&es o$ proced're.c!anro.&es.co,cra&a"red
Contrar# to petitioner/s contention, a&t!o'%! a circ'&ar is not strict&# a stat'te or &a", it !as, !o"ever, t!e
$orce and e$$ect o$ &a" accordin% to sett&ed 5'rispr'dence. + In Incion% v. de G'ia, * a circ'&ar o$ t!is Co'rt
"as treated as &a". In adoptin% t!e reco,,endation o$ t!e Investi%atin% C'd%e to i,pose a sanction on a
5'd%e "!o vio&ated Circ'&ar No. - o$ t!is Co'rt dated Septe,.er 3(, )*-4, as a,ended .# Circ'&ar No. (
dated Apri& 34, )*-0 and Circ'&ar No. 32 dated Octo.er 4, )*-*, re<'irin% ra$$&in% o$ cases, t!is Co'rt
<'oted t!e ratiocination o$ t!e Investi%atin% C'd%e, .r's!in% aside t!e contention o$ respondent 5'd%e t!at
assi%nin% cases instead o$ ra$$&in% is a co,,on practice and !o&din% t!at respondent co'&d not %o a%ainst
t!e circ'&ar o$ t!is Co'rt 'nti& it is repea&ed or ot!er"ise ,odi$ied, as? 7L8a"s are repea&ed on&# .#
s'.se<'ent ones, and t!eir vio&ation or non1o.servance s!a&& not .e e9c'sed .# dis'se, or c'sto,s or
practice to t!e contrar#.? )2
T!e ar%',ent t!at Artic&e +3 o$ E.O. 33; cannot .e va&id&# repea&ed .# Circ'&ar )1*) .eca'se t!e $or,er
%rants a s'.stantive ri%!t "!ic!, 'nder t!e Constit'tion cannot .e ,odi$ied, di,inis!ed or increased .#
t!is Co'rt in t!e e9ercise o$ its r'&e1,a:in% po"ers is not entire&# de$ensi.&e as it see,s. Respondent
correct&# ar%'ed t!at Artic&e +3 o$ E.O. 33; %rants t!e ri%!t o$ appea& $ro, decisions or $ina& orders o$ t!e
6OI and in %rantin% s'c! ri%!t, it a&so provided "!ere and in "!at ,anner s'c! appea& can .e .ro'%!t.
T!ese &atter portions si,p&# dea& "it! proced'ra& aspects "!ic! t!is Co'rt !as t!e po"er to re%'&ate .#
virt'e o$ its constit'tiona& r'&e1,a:in% po"ers.
T!e case o$ 6'stos v. L'cero )) distin%'is!ed .et"een ri%!ts created .# a s'.stantive &a" and t!ose
arisin% $ro, proced'ra& &a"5%cc!anro.&es.co,.p!
?S'.stantive &a" creates s'.stantive ri%!ts . . . . S'.stantive ri%!ts is a ter, "!ic! inc&'des t!ose ri%!ts
"!ic! one en5o#s 'nder t!e &e%a& s#ste, prior to t!e dist'r.ance o$ nor,a& re&ations 7;2 C.C., *+28.
S'.stantive &a" is t!at part o$ t!e &a" "!ic! creates, de$ines and re%'&ates ri%!ts, or "!ic! re%'&ates
ri%!ts and d'ties "!ic! %ive rise to a ca'se o$ action, as opposed to ad5ective or re,edia& &a", "!ic!
prescri.es t!e ,et!od o$ en$orcin% ri%!ts or o.tains a redress $or t!eir invasion.? )3
Indeed, t!e <'estion o$ "!ere and in "!at ,anner appea&s $ro, decisions o$ t!e 6OI s!o'&d .e .ro'%!t
pertains on&# to proced're or t!e ,et!od o$ en$orcin% t!e s'.stantive ri%!t to appea& %ranted .# E.O. 33;.
In ot!er "ords, t!e ri%!t to appea& $ro, decisions or $ina& orders o$ t!e 6OI 'nder E.O. 33; re,ains and
contin'es to .e respected. Circ'&ar )1*) si,p&# trans$erred t!e ven'e o$ appea&s $ro, decisions o$ t!is
a%enc# to respondent Co'rt o$ Appea&s and provided a di$$erent period o$ appea&, i.e., $i$teen 7)08 da#s
$ro, notice. It did not ,a:e an inc'rsion into t!e s'.stantive ri%!t to appea&.cra&a"nad
T!e $act t!at 6OI is not e9press&# inc&'ded in t!e &ist o$ <'asi15'dicia& a%encies $o'nd in t!e t!ird sentence
o$ Section ) o$ Circ'&ar )1*) does not ,ean t!at said circ'&ar does not app&# to appea&s $ro, $ina& orders
or decision o$ t!e 6OI. T!e second sentence o$ Section ) t!ereo$ e9press&# states t!at? 7T8!e# s!a&& a&so
app&# to appea& $ro, $ina& orders or decisions o$ an# <'asi15'dicia& a%enc# $ro, "!ic! an appea& is no"
a&&o"ed .# stat'te to t!e Co'rt o$ Appea&s or t!e S'pre,e Co'rt.? E.O. 3;; is one s'c! stat'te. 6esides,
t!e en',eration is preceded .# t!e "ords? 7A8,on% t!ese a%encies are . . .,? stron%&# i,p&#in% t!at t!ere
are ot!er <'asi15'dicia& a%encies "!ic! are covered .# t!e Circ'&ar .'t "!ic! !ave not .een e9press&#
&isted t!erein. More i,portant&#, 6OI does not $a&& "it!in t!e p'rvie" o$ t!e e9c&'sions &isted in Section 3 o$
t!e circ'&ar. On&# t!e $o&&o"in% $ina& decisions and inter&oc'tor# orders are e9press&# e9c&'ded $ro, t!e
circ'&ar, na,e&#, t!ose o$ 7)8 t!e Nationa& La.or Re&ations Co,,issionD 738 t!e Secretar# o$ La.or and
E,p&o#,entD 7(8 t!e Centra& 6oard o$ Assess,ent Appea&s and 748 ot!er <'asi15'dicia& a%encies $ro,
"!ic! no appea& to t!e co'rts is prescri.ed or a&&o"ed .# stat'te. Since in @6P v. CA )( "e 'p!e&d t!e
appe&&ate 5'risdiction o$ t!e Co'rt o$ Appea&s over t!e Co'rt o$ Ta9 Appea&s despite t!e $act t!at t!e sa,e
is not a,on% t!e a%encies reor%aniJed .# 6.P. )3*, on t!e %ro'nd t!at 6.P. )3* is .road and
co,pre!ensive, t!ere is no reason "!# 6OI s!o'&d .e e9c&'ded $ro, Circ'&ar )1*), "!ic! is .'t
i,p&e,entar# o$ said &a".
C&ear&#, Circ'&ar )1*) e$$ective&# repea&ed or s'perseded Artic&e +3 o$ E.O. 33; inso$ar as t!e ,anner and
,et!od o$ en$orcin% t!e ri%!t to appea& $ro, decisions o$ t!e 6OI are concerned. Appea&s $ro, decisions
o$ t!e 6OI, "!ic! .# stat'te "as previo's&# a&&o"ed to .e $i&ed direct&# "it! t!e S'pre,e Co'rt, s!o'&d
no" .e .ro'%!t to t!e Co'rt o$ Appea&s.c!anro.&es virt'a& &a"&i.rar#
=HEREFORE, in vie" o$ t!e $ore%oin% reasons, t!e instant petition $or certiorari and pro!i.ition "it!
app&ication $or te,porar# restrainin% order and pre&i,inar# in5'nction is !ere.# @ISMISSE@ $or &ac: o$
,erit. T!e Te,porar# Restrainin% Order iss'ed on C'&# )*, )**( is !ere.# LIFTE@.
SO OR@ERE@.
SARAH P. AMPONG, Petitioner, v. CIIIL SERIICE COMMISSION, CSC1Re%iona& O$$ice No. )),
Respondents.
On Nove,.er )2, )**), a Pro$essiona& 6oard E9a,ination $or Teac!ers 7P6ET83 "as !e&d in @avao Cit#.
A certain Eve&#n C'nio1@ecir( app&ied $or and too: t!e e9a,ination at Roo, );, Napitan To,as
Monteverde E&e,entar# Sc!oo&. S!e passed "it! a ratin% o$ -4.3-P.4
At t!e ti,e o$ t!e P6ET e9a,inations, petitioner Sara! P. A,pon% 7nee Navarra8 and @ecir "ere p'.&ic
sc!oo& teac!ers 'nder t!e s'pervision o$ t!e @epart,ent o$ Ed'cation, C'&t're and Sports 7@ECS8.0
Later, on A'%'st (, )**(, A,pon% trans$erred to t!e Re%iona& Tria& Co'rt 7RTC8 in A&a.e&, Saran%ani
Province, "!ere s!e "as appointed as Co'rt Interpreter III.
On C'&# 0, )**4, a "o,an representin% !erse&$ as Eve&#n @ecir "ent to t!e Civi& Service Re%iona& O$$ice
7CSRO8 No. HI, @avao Cit#, to c&ai, a cop# o$ !er P6ET Certi$icate o$ E&i%i.i&it#. @'rin% t!e co'rse o$ t!e
transaction, t!e CSRO personne& noticed t!at t!e "o,an did not rese,.&e t!e pict're o$ t!e e9a,inee in
t!e Pict're Seat P&an 7PSP8. Upon $'rt!er pro.in%, it "as con$ir,ed t!at t!e person c&ai,in% t!e e&i%i.i&it#
"as di$$erent $ro, t!e one "!o too: t!e e9a,inations. It "as petitioner A,pon% "!o too: and passed t!e
e9a,inations 'nder t!e na,e Eve&#n @ecir.
T!e CSRO cond'cted a pre&i,inar# investi%ation and deter,ined t!e e9istence o$ a pri,a $acie case
a%ainst @ecir and A,pon% $or @is!onest#, Grave Miscond'ct and Cond'ct Pre5'dicia& to t!e 6est Interest
o$ t!e Service. On A'%'st 3(, )**4, t!e# "ere $or,a&&# c!ar%ed and re<'ired to $i&e ans"ers 'nder oat!.
T!e $or,a& c!ar%e reads
T!at so,eti,e .e$ore t!e cond'ct o$ t!e Nove,.er )2, )**) Pro$essiona& 6oard E9a,ination $or
Teac!ers 7P6ET8, a certain Ms. Eve&#n 6. C'nio 7no" @ecir8 too: t!e said e9a,ination at R,. ); Napitan
To,as Monteverde E&e,entar# Sc!oo&, @avao Cit#, "it! a passin% rate o$ -4.3-PD T!at on C'&# 0, )**4
s!e appeared .e$ore t!e CSC Re%ion HI O$$ice to %et !er G'ro Certi$icateD T!at 'pon veri$ication, it "as
$o'nd o't t!at t!e pict're attac!ed in t!e Pict're Seat P&an, ,ar:ed as Anne9 ?A? and ?A1),? respective&#,
"ere not t!e sa,e co,pared to t!e pict're attac!ed in t!e CSC For, 3)3 o$ Eve&#n C'nio1@ecir ,ar:ed
!erein as anne9 ?6,? ?61),? respective&#. T!ere "as a&so a ,ar:ed di$$erence in t!e si%nat'res a$$i9ed in
t!e said anne9esD T!at $'rt!er investi%ations revea&ed t!at it "as t!e pict'res o$ Ms. Sara! Navarra, "i$e
o$ !er !'s.andQs $irst co'sin, "!o too: t!e said e9a,ination in .e!a&$ o$ Ms. Eve&#n C'nio1@ecir, a
provisiona& teac!erD T!at t!e said act o$ Mesda,es @ecir and Navarra are acts o$ dis!onest# and cond'ct
pre5'dicia& to t!e .est interest o$ t!e serviceD t!at in 7sic8 ta:in% t!e CS e9a,ination $or and in .e!a&$ o$
anot!er 'nder,ines t!e sanctit# o$ t!e CS e9a,inationsD A&& t!ese contrar# to e9istin% civi& service &a"s
and re%'&ations. 7E,p!asis s'pp&ied8cra&a"&i.rar#
In !er s"orn state,ent dated Nove,.er (, )**4, @ecir denied t!e c!ar%es a%ainst !er. S!e reasoned o't
t!at it ,'st !ave .een t!e e9a,ination proctor "!o pasted t!e "ron% pict're on t!e PSP and t!at !er
si%nat'res "ere di$$erent .eca'se s!e "as sti&& si%nin% !er ,aiden na,e at t!e ti,e o$ t!e e9a,ination. In
!er Ans"er, @ecir contended t!at
3. T!e sa,e acc'sation is denied, t!e tr't! .ein%
A. =!en I too: t!e Pro$essiona& 6oard E9a,ination $or Teac!ers 7P6ET8 in t!e #ear )**), I !anded ,#
)9) I.@. pict're to t!e proctor assi%ned in t!e e9a,ination roo, "!o ,i%!t !ave inadvertent&# pasted in
t!e Seat P&an Et!eF "ron% pict're instead Eo$F ,# o"n pict'reD
.. =it! respect to t!e ,ar:ed di$$erence in ,# si%nat're .ot! appearin% in t!e a$oresaid Seat P&an and
a&so "it! t!e For, 3)3, t!e disparit# &ies in t!at in t!e #ear )**), "!en I too: t!e a$roresaid e9a,ination, I
"as sti&& sportin% ,# ,aiden na,e Eve&#n 6. C'nio in order to coincide "it! a&& ,# pertinent s'pportin%
papers, &i:e t!e specia& order 7s.o.8, appoint,ent and a,on% ot!ers, p'rpose&# to ta:e said
co,,'nications. Ho"ever, i,,ediate&# a$ter ta:in% t!e P6ET E9a,ination in )**), I started 'sin% t!e $'&&
na,e o$ Eve&#n C'nio1@ecir.;
Even .e$ore $i&in% an Ans"er, petitioner A,pon% vo&'ntari&# appeared at t!e CSRO on Fe.r'ar# 3, )**0
and ad,itted to t!e "ron%doin%. =!en re,inded t!at s!e ,a# avai& !erse&$ o$ t!e services o$ co'nse&,
petitioner vo&'ntari&# "aived said ri%!t.
On Marc! )(, )**0, petitioner %ave anot!er ad,ission in t!e $o&&o"in% tenor
A No", "!at is t!en #o'r intention in co,in% to t!is Re%ion inas,'c! as #o' are sti&& intendin% to $i&e
an ans"er to t!e $or,a& c!ar%eRcra &a"&i.rar#
A I ca,e !ere .eca'se I "ant to ad,it persona&&#. So t!at I "i&& not .e co,in% !ere an#,ore. I "i&&
s'.,it ,# case $or Reso&'tion.
A So, #o' intend to "aive #o'r ri%!t $or t!e $or,a& !earin% and #o' a&so ad,it ora&&# on t!e %'i&t o$ t!e
c!ar%e on t!e For,a& C!ar%e dated A'%'st 34, )**4Rcra &a"&i.rar#
A Bes, MaQa,.
A =!at e&se do #o' "ant to te&& t!e Co,,issionRcra &a"&i.rar#
A 9 9 9 Inas,'c! as I a, a&read# re,orse$'&, I a, repentin% o$ t!e "ron% t!at I !ave done. I a,
!opin% t!at t!e Co,,ission can !e&p 9 9 9 so t!at I "i&& .e %iven or %ranted anot!er c!ance to serve t!e
%overn,ent.
9 9 9
A No" inas,'c! as #o' !ave dec&ared t!at #o' !ave ad,itted t!e %'i&t t!at #o' too: t!e e9a,ination
$or and in .e!a&$ o$ Eve&#n C'nio @ecir, are #o' te&&in% t!is to t!e Co,,ission "it!o't t!e assistance o$ t!e
co'nse& or "aiver o$ #o'r ri%!t to .e assisted .# co'nse&.
A Bes, MaQa,. I a, "aivin% ,# ri%!t.- 7E,p!asis s'pp&ied8cra&a"&i.rar#
Petitioner reiterated !er ad,ission in !er s"orn Ans"er dated Marc! );, )**0
(. T!at, d'rin% t!e co,,ission o$ t!e act, I "as sti&& 'nder t!e @epart,ent o$ Ed'cation, C'&t're and
Sports, as Teac!er in1c!ar%e o$ San Mi%'e& Pri,ar# Sc!oo&, Ma&'n%on Nort! @istrict, "a# .ac: in )**),
"!en t!e !'s.and o$ Eve&#n C'nio1@ecir, ,# !'s.andQs co'sin ca,e to ,e and pers'aded ,e to ta:e t!e
e9a,ination in .e!a&$ o$ !is "i$e to "!ic! I disa%reed .'t !e earnest&# .e%%ed so t!at I "as convinced to
a%ree .eca'se I pit# !is "i$e considerin% t!at s!e is an i,,ediate re&ative, and t!ere "as no ,onetar#
consideration invo&ved in t!is neit!er a co,pensator# re"ard $or ,e, as I "as overco,e .# t!eir
pers'asionD
4. T!at, despite t!e $act t!at I "as a teac!er, I "as not a"are t!at t!e acts I "as c!ar%ed, is a %ro'nd $or
discip&inar# action and p'nis!a.&e .# dis,issa&D
0. T!at I s!o'&d not !ave con$or,ed to t!is ano,a&o's transaction considerin% t!at I "as .orn in a
C!ristian $a,i&#, and "as .ro'%!t 'p in t!e $ear o$ Lord, and !ad .een a consistent o$$icer o$ t!e C!'rc!
6oard, !ad .een a re&i%io's &eader $or so ,an# #ears, and !ad .een t!e or%aniJer o$ t!e M'sic Festiva& o$
t!e Association o$ Evan%e&ica& C!'rc!es o$ Ma&'n%on, Saran%ani Province, t!'s I "as devoted to c!'rc!
"or: and "as :no"n to .e o$ %ood cond'ctD and t!at ,# $riends and ac<'aintances can vo'c! to t!at, .'t
I "as 5'st $orced .# circ',stances to a%ree to t!e spo'ses God$re and Eve&#n @ecir.+ 7E,p!asis added8
CSC Findin% and Pena&t#
On Marc! 3), )**;, t!e CSC $o'nd petitioner A,pon% and @ecir %'i&t# o$ dis!onest#, dis,issin% t!e,
$ro, t!e service. T!e dispositive part o$ t!e CSC reso&'tion states
=HEREFORE, t!e Co,,ission !ere.# $inds Eve&#n C. @ecir and Sara! P. Navarra %'i&t# o$ @is!onest#.
Accordin%&#, t!e# are ,eted t!e pena&t# o$ dis,issa& "it! a&& its accessor# pena&ties. T!e P6ET ratin% o$
@ecir is revo:ed.*
Petitioner ,oved $or reconsideration, raisin% $or t!e $irst ti,e t!e iss'e o$ 5'risdiction.)2 S!e ar%'ed t!at
t!e e9c&'sive a't!orit# to discip&ine e,p&o#ees o$ t!e 5'diciar# &ies "it! t!e S'pre,e Co'rtD t!at t!e CSC
acted "it! a.'se o$ discretion "!en it contin'ed to e9ercise 5'risdiction despite !er ass',ption o$ d't# as
a 5'dicia& e,p&o#ee. S!e contended t!at at t!e ti,e t!e case "as instit'ted on A'%'st 3(, )**4, t!e CSC
a&read# &ost 5'risdiction over !er. S!e "as appointed as Interpreter III o$ t!e RTC, 6ranc! (+, A&a.e&,
Saran%ani Province on A'%'st (, )**(.
T!e CSC denied t!e ,otion $or reconsideration.)) Accordin% to t!e Co,,ission, to a&&o" petitioner to
evade ad,inistrative &ia.i&it# "o'&d .e a ,oc:er# o$ t!e co'ntr#Qs ad,inistrative discip&inar# s#ste,. It "i&&
open t!e $&ood%ates $or ot!ers to escape prosec'tion .# t!e ,ere e9pedient o$ 5oinin% anot!er .ranc! o$
%overn,ent. In 'p!o&din% its 5'risdiction over petitioner, t!e CSC di$$erentiated .et"een ad,inistrative
s'pervision e9ercised .# t!e S'pre,e Co'rt and ad,inistrative 5'risdiction %ranted to t!e Co,,ission
over a&& civi& service e,p&o#ees
Moreover, it ,'st .e pointed o't t!at ad,inistrative s'pervision is distinct $ro, ad,inistrative 5'risdiction.
=!i&e it is tr'e t!at t!is Co,,ission does not !ave ad,inistrative s'pervision over e,p&o#ees in t!e
5'diciar#, it de$inite&# !as conc'rrent 5'risdiction over t!e,. S'c! 5'risdiction "as con$erred 'pon t!e Civi&
Service Co,,ission p'rs'ant to e9istin% &a" speci$ica&&# Section )37))8, C!apter (, 6oo: I o$ t!e
Ad,inistrative Code o$ )*+- 7E9ec'tive Order No. 3*38 "!ic! provides as $o&&o"s
?7))8 Hear and decide ad,inistrative cases instit'ted .# or t!ro'%! it direct&# or on appea&, inc&'din%
contested appoint,ent, and revie" decisions and actions o$ its o$$ices and o$ t!e a%encies attac!ed to it 9
9 9.?
T!e $act t!at co'rt personne& are 'nder t!e ad,inistrative s'pervision o$ t!e S'pre,e Co'rt does not
tota&&# iso&ate t!e, $ro, t!e operations o$ t!e Civi& Service La". Appoint,ents o$ a&& o$$icia&s and
e,p&o#ees in t!e 5'diciar# is %overned .# t!e Civi& Service La" 7Section 07;8, Artic&e IIII, )*+-
Constit'tion8. 7E,p!asis s'pp&ied8cra&a"&i.rar#
CA @isposition
Iia Petition $or Revie" 'nder R'&e 4(, petitioner e&evated t!e ,atter to t!e CA.)3 S!e insisted t!at as a
5'dicia& e,p&o#ee, it is t!e S'pre,e Co'rt and not t!e CSC t!at !as discip&inar# 5'risdiction over !er.
In a @ecision dated Nove,.er (2, 3224,)( t!e CA denied t!e petition $or &ac: o$ ,erit.
T!e CA noted t!at petitioner never raised t!e iss'e o$ 5'risdiction 'nti& a$ter t!e CSC r'&ed a%ainst !er.
Rat!er, s!e "i&&in%&# appeared .e$ore t!e co,,ission, $ree&# ad,itted !er "ron%doin%, and even
re<'ested $or c&e,enc#. T!'s, s!e "as estopped $ro, <'estionin% t!e Co,,issionQs 5'risdiction. T!e
appe&&ate co'rt opined t!at "!i&e &ac: o$ 5'risdiction ,a# .e assai&ed at an# sta%e, a part#Qs active
participation in t!e proceedin%s .e$ore a co'rt, tri.'na& or .od# "i&& estop s'c! part# $ro, assai&in% its
5'risdiction.
T!e CA $'rt!er r'&ed t!at a ,e,.er o$ t!e 5'diciar# ,a# .e 'nder t!e 5'risdiction o$ t"o di$$erent .odies.
As a p'.&ic sc!oo& teac!er or a co'rt interpreter, petitioner "as part o$ t!e civi& service, s'.5ect to its r'&es
and re%'&ations. =!en s!e co,,itted acts in vio&ation o$ t!e Civi& Service La", t!e CSC "as c&ot!ed "it!
ad,inistrative 5'risdiction over !er.
Iss'e
Petitioner, t!ro'%! t!is petition, assi%ns t!e &one error t!at
T!e Honora.&e Co'rt o$ Appea&s1First @ivision decided a <'estion o$ s'.stance in a "a# not in accord
"it! &a" and 5'rispr'dence, %rave&# erred in $acts and in &a", and !as sanctioned s'c! depart're and
%rave error .eca'se it i%nored or "as not a"are o$ Garcia v. @e &a PeLa, 33* SCRA -;; 7)**48 and Ad,.
Matter No. OCA I.P.I. *-1(3*1P 7CSC v. A,pon%8 dated Can'ar# (), 322), "!ic! reiterate t!e r'&e t!at
e9c&'sive a't!orit# to discip&ine e,p&o#ees o$ t!e 5'diciar# &ies "it! t!e S'pre,e Co'rt, in iss'in% t!e
<'estioned decision and reso&'tionD "!ic! %rave error "arrant reversa& o$ t!e <'estioned decision and
reso&'tion.)4
P't si,p&#, t!e iss'e .oi&s do"n to "!et!er t!e CSC !as ad,inistrative 5'risdiction over an e,p&o#ee o$
t!e C'diciar# $or acts co,,itted "!i&e said e,p&o#ee "as sti&& "it! t!e E9ec'tive or Ed'cation
@epart,ent.
O'r R'&in%
T!e ans"er to t!e <'estion at t!e o'tset is in t!e ne%ative .'t =e r'&e a%ainst t!e petition on t!e %ro'nd
o$ estoppe&.
It is tr'e t!at t!e CSC !as ad,inistrative 5'risdiction over t!e civi& service. As de$ined 'nder t!e
Constit'tion and t!e Ad,inistrative Code, t!e civi& service e,.races ever# .ranc!, a%enc#, s'.division,
and instr',enta&it# o$ t!e %overn,ent, and %overn,ent1o"ned or contro&&ed corporations.)0 P'rs'ant to
its ad,inistrative a't!orit#, t!e CSC is %ranted t!e po"er to ?contro&, s'pervise, and coordinate t!e Civi&
Service e9a,inations.?); T!is a't!orit# %rants to t!e CSC t!e ri%!t to ta:e co%niJance o$ an# irre%'&arit#
or ano,a&# connected "it! t!e e9a,inations.)-
Ho"ever, t!e Constit'tion provides t!at t!e S'pre,e Co'rt is %iven e9c&'sive ad,inistrative s'pervision
over a&& co'rts and 5'dicia& personne&.)+ 6# virt'e o$ t!is po"er, it is on&# t!e S'pre,e Co'rt t!at can
oversee t!e 5'd%esQ and co'rt personne&Qs co,p&iance "it! a&& &a"s, r'&es and re%'&ations. It ,a# ta:e t!e
proper ad,inistrative action a%ainst t!e, i$ t!e# co,,it an# vio&ation. No ot!er .ranc! o$ %overn,ent
,a# intr'de into t!is po"er, "it!o't r'nnin% a$o'& o$ t!e doctrine o$ separation o$ po"ers.)* T!'s, t!is
Co'rt r'&ed t!at t!e O,.'ds,an cannot 5'sti$# its investi%ation o$ a 5'd%e on t!e po"ers %ranted to it .#
t!e Constit'tion. It vio&ates t!e speci$ic ,andate o$ t!e Constit'tion %rantin% to t!e S'pre,e Co'rt
s'pervisor# po"ers over a&& co'rts and t!eir personne&D it 'nder,ines t!e independence o$ t!e 5'diciar#.32
In Civi& Service Co,,ission v. Sta. Ana,3) t!is Co'rt !e&d t!at i,personatin% an e9a,inee o$ a civi&
service e9a,ination is an act o$ dis!onest#. 6't .eca'se t!e o$$ender invo&ved a 5'dicia& e,p&o#ee 'nder
t!e ad,inistrative s'pervision o$ t!e S'pre,e Co'rt, t!e CSC $i&ed t!e necessar# c!ar%es .e$ore t!e
O$$ice o$ t!e Co'rt Ad,inistrator 7OCA8, a proced're "!ic! t!is Co'rt va&idated.
A si,i&ar $ate .e$e&& 5'dicia& personne& in 6arto&ata v. C'&aton,33 invo&vin% 5'dicia& e,p&o#ees "!o a&so
i,personated civi& service e9a,inees. As in Sta. Ana, t!e CSC &i:e"ise $i&ed t!e necessar# c!ar%es
.e$ore t!e OCA .eca'se respondents "ere 5'dicia& e,p&o#ees. Findin% respondents %'i&t# o$ dis!onest#
and ,etin% t!e pena&t# o$ dis,issa&, t!is Co'rt !e&d t!at ?respondentsQ ,ac!inations re$&ect t!eir
dis!onest# and &ac: o$ inte%rit#, renderin% t!e, 'n$it to ,aintain t!eir positions as p'.&ic servants and
e,p&o#ees o$ t!e 5'diciar#.?3(
Co,pared to Sta. Ana and 6arto&ata, t!e present case invo&ves a si,i&ar vio&ation o$ t!e Civi& Service La"
.# a 5'dicia& e,p&o#ee. 6't t!is case is s&i%!t&# di$$erent in t!at petitioner co,,itted t!e o$$ense .e$ore !er
appoint,ent to t!e 5'dicia& .ranc!. At t!e ti,e o$ co,,ission, petitioner "as a p'.&ic sc!oo& teac!er
'nder t!e ad,inistrative s'pervision o$ t!e @ECS and, in ta:in% t!e civi& service e9a,inations, 'nder t!e
CSC. Petitioner s'rreptitio's&# too: t!e CSC1s'pervised P6ET e9a, in p&ace o$ anot!er person. =!en
s!e did t!at, s!e .eca,e a part# to c!eatin% or dis!onest# in a civi& service1s'pervised e9a,ination.
T!at s!e co,,itted t!e dis!onest act .e$ore s!e 5oined t!e RTC does not ta:e !er case o't o$ t!e
ad,inistrative reac! o$ t!e S'pre,e Co'rt.
T!e .otto, &ine is ad,inistrative 5'risdiction over a co'rt e,p&o#ee .e&on%s to t!e S'pre,e Co'rt,
re%ard&ess o$ "!et!er t!e o$$ense "as co,,itted .e$ore or a$ter e,p&o#,ent in t!e 5'diciar#.
Indeed, t!e standard proced're is $or t!e CSC to .rin% its co,p&aint a%ainst a 5'dicia& e,p&o#ee .e$ore t!e
OCA. Records s!o" t!at t!e CSC did not ad!ere to t!is proced're in t!e present case.
Ho"ever, =e are constrained to 'p!o&d t!e r'&in% o$ t!e CSC .ased on t!e princip&e o$ estoppe&. T!e
previo's actions o$ petitioner !ave estopped !er $ro, attac:in% t!e 5'risdiction o$ t!e CSC. A part# "!o
!as a$$ir,ed and invo:ed t!e 5'risdiction o$ a co'rt or tri.'na& e9ercisin% <'asi15'dicia& $'nctions to sec're
an a$$ir,ative re&ie$ ,a# not a$ter"ards den# t!at sa,e 5'risdiction to escape a pena&t#.34 As t!is Co'rt
dec&ared in A<'ino v. Co'rt o$ Appea&s30
In t!e interest o$ so'nd ad,inistration o$ 5'stice, s'c! practice cannot .e to&erated. I$ "e are to sanction
t!is ar%',ent, t!en a&& t!e proceedin%s !ad .e$ore t!e &o"er co'rt and t!e Co'rt o$ Appea&s "!i&e va&id in
a&& ot!er respects "o'&d si,p&# .eco,e 'se&ess.3;
Under t!e princip&e o$ estoppe&, a part# ,a# not .e per,itted to adopt a di$$erent t!eor# on appea& to
i,p'%n t!e co'rtQs 5'risdiction.3- In E,in v. @e Leon,3+ t!is Co'rt s'stained t!e e9ercise o$ 5'risdiction .#
t!e CSC, "!i&e reco%niJin% at t!e sa,e ti,e t!at ori%ina& discip&inar# 5'risdiction over p'.&ic sc!oo&
teac!ers .e&on%s to t!e appropriate co,,ittee created $or t!e p'rpose as provided $or 'nder t!e Ma%na
Carta $or P'.&ic Sc!oo& Teac!ers.3* It "as t!ere !e&d t!at a part# "!o $'&&# participated in t!e
proceedin%s .e$ore t!e CSC and "as accorded d'e process is estopped $ro, s'.se<'ent&# attac:in% its
5'risdiction.
Petitioner "as %iven a,p&e opport'nit# to present !er side and add'ce evidence in !er de$ense .e$ore t!e
CSC. S!e $i&ed "it! it !er ans"er to t!e c!ar%es &eve&ed a%ainst !er. =!en t!e CSC $o'nd !er %'i&t#, s!e
,oved $or a reconsideration o$ t!e r'&in%. T!ese circ',stances a&& too c&ear&# s!o" t!at d'e process "as
accorded to petitioner.
PetitionerQs ad,ission o$ %'i&t stands. Apart $ro, !er $'&& participation in t!e proceedin%s .e$ore t!e CSC,
petitioner ad,itted to t!e o$$ense c!ar%ed 1 t!at s!e i,personated @ecir and too: t!e P6ET e9a, in t!e
&atterQs p&ace. =e note t!at even .e$ore petitioner $i&ed a "ritten ans"er, s!e vo&'ntari&# "ent to t!e CSC
Re%iona& O$$ice and ad,itted to t!e c!ar%es a%ainst !er. In t!e sa,e .reat!, s!e "aived !er ri%!t to t!e
assistance o$ co'nse&. Her ad,ission, a,on% ot!ers, &ed t!e CSC to $ind !er %'i&t# o$ dis!onest#, ,etin%
o't to !er t!e pena&t# o$ dis,issa&.
No", s!e assai&s said con$ession, ar%'in% t!at it "as %iven "it!o't aid o$ co'nse&. In po&ice c'stodia&
investi%ations, t!e assistance o$ co'nse& is necessar# in order $or an e9tra15'dicia& con$ession to .e ,ade
ad,issi.&e in evidence a%ainst t!e acc'sed in a cri,ina& co,p&aint. I$ assistance "as "aived, t!e "aiver
s!o'&d !ave .een ,ade "it! t!e assistance o$ co'nse&.(2
6't "!i&e a part#Qs ri%!t to t!e assistance o$ co'nse& is sacred in proceedin%s cri,ina& in nat're, t!ere is
no s'c! re<'ire,ent in ad,inistrative proceedin%s. In L',i<'ed v. E9evea,() t!is Co'rt r'&ed t!at a part#
in an ad,inistrative in<'ir# ,a# or ,a# not .e assisted .# co'nse&. Moreover, t!e ad,inistrative .od# is
'nder no d't# to provide t!e person "it! co'nse& .eca'se assistance o$ co'nse& is not an a.so&'te
re<'ire,ent.(3
PetitionerQs ad,ission "as %iven $ree&#. T!ere "as no co,p'&sion, t!reat or inti,idation. As $o'nd .# t!e
CSC, petitionerQs ad,ission "as s'.stantia& eno'%! to s'pport a $indin% o$ %'i&t.
T!e CSC $o'nd petitioner %'i&t# o$ dis!onest#. It is cate%oriJed as ?an act "!ic! inc&'des t!e proc're,ent
andOor 'se o$ $a:eOsp'rio's civi& service e&i%i.i&it#, t!e %ivin% o$ assistance to ens're t!e co,,ission or
proc're,ent o$ t!e sa,e, c!eatin%, co&&'sion, i,personation, or an# ot!er ano,a&o's act "!ic! a,o'nts
to an# vio&ation o$ t!e Civi& Service e9a,ination.?(( Petitioner i,personated @ecir in t!e P6ET e9a,, to
ens're t!at t!e &atter "o'&d o.tain a passin% ,ar:. 6# intentiona&&# practicin% a deception to sec're a
passin% ,ar:, t!eir acts 'ndenia.&# invo&ve dis!onest#.(4
T!is Co'rt !as de$ined dis!onest# as t!e ?7d8isposition to &ie, c!eat, deceive, or de$ra'dD
'ntr'st"ort!inessD &ac: o$ inte%rit#D &ac: o$ !onest#, pro.it# or inte%rit# in princip&eD &ac: o$ $airness and
strai%!t$or"ardnessD disposition to de$ra'd, deceive or .etra#.?(0 PetitionerQs dis!onest act as a civi&
servant renders !er 'n$it to .e a 5'dicia& e,p&o#ee. Indeed, =e ta:e note t!at petitioner s!o'&d not !ave
.een appointed as a 5'dicia& e,p&o#ee !ad t!is Co'rt .een ,ade a"are o$ t!e c!eatin% t!at s!e
co,,itted in t!e civi& service e9a,inations. 6e t!at as it ,a#, petitionerQs present stat's as a 5'dicia&
e,p&o#ee is not a !indrance to !er %ettin% t!e pena&t# s!e deserves.
T!e cond'ct and .e!avior o$ ever#one connected "it! an o$$ice c!ar%ed "it! t!e dispensation o$ 5'stice is
circ',scri.ed "it! a !eav# .'rden or responsi.i&it#. T!e i,a%e o$ a co'rt, as a tr'e te,p&e o$ 5'stice, is
,irrored in t!e cond'ct, o$$icia& or ot!er"ise, o$ t!e ,en and "o,en "!o "or: t!ereat, $ro, t!e 5'd%e to
t!e &east and &o"est o$ its personne&.(; As t!e Co'rt !e&d in anot!er ad,inistrative case $or dis!onest#
9 9 9 An# act "!ic! di,inis!es or tends to di,inis! t!e $ait! o$ t!e peop&e in t!e 5'diciar# s!a&& not .e
co'ntenanced. =e !ave not !esitated to i,pose t!e 't,ost pena&t# o$ dis,issa& $or even t!e s&i%!test
.reac! o$ d't# .#, and t!e s&i%!test irre%'&arit# in t!e cond'ct o$, said o$$icers and e,p&o#ees, i$ so
"arranted. S'c! .reac! and irre%'&arit# detract $ro, t!e di%nit# o$ t!e !i%!est co'rt o$ t!e &and and erode
t!e $ait! o$ t!e peop&e in t!e 5'diciar#.
9 9 9
As a $ina& point, "e ta:e t!is opport'nit# to e,p!asiJe t!at no <'i..&in%, ,'c! &ess !esitation or
circ',vention, on t!e part o$ an# e,p&o#ee to $o&&o" and con$or, to t!e r'&es and re%'&ations en'nciated
.# t!is Co'rt and t!e Co,,ission on Civi& Service, s!o'&d .e to&erated. T!e Co'rt, t!ere$ore, "i&& not
!esitate to rid its ran:s o$ 'ndesira.&es "!o 'nder,ine its e$$orts to"ard an e$$ective and e$$icient s#ste,
o$ 5'stice.(- 7E,p!asis added8
=e "i&& not to&erate dis!onest# $or t!e C'diciar# e9pects t!e .est $ro, a&& its e,p&o#ees.(+ Hindi na,in
papa#a%an an% pandara#a sapa%:at inaasa!an n% H'di:at'ra an% pina:a,a.'ti sa &a!at niton% :a"ani.
=HEREFORE, t!e petition is @ENIE@ $or &ac: o$ ,erit.
GOIERNOR SA@INUL A. SAHALI and IICE1GOIERNOR RU6B M. SAHAL&, Petitioners,
vs.
COMMISSION ON ELECTIONS 7FIRST @IIISION8, RASHI@IN H. MA T6A and CILNASI C. USMAN,
Respondents.
@'rin% t!e Ma# )2, 32)2 e&ections, Sadi:'& and private respondent Ras!idin H. Mat.a 7Mat.a8 "ere t"o
o$ t!e $o'r candidates "!o ran $or t!e position o$ %overnor in t!e Province o$ Ta"i1Ta"i "!i&e R'.# and
private respondent Ci&:asi C. Us,an 7Us,an8 ran $or t!e position o$ Iice1Governor.3
On Ma# )4, 32)2, t!e Provincia& 6oard o$ Canvassers 7P6OC8 proc&ai,ed petitioners Sadi:'& and R'.#
as t!e d'&# e&ected %overnor and vice1%overnor, respective&#, o$ t!e province o$ Ta"i1Ta"i. In t!e
state,ent o$ votes iss'ed .# t!e P6OC, petitioner Sadi:'& %arnered a tota& o$ 0*,4)- as a%ainst private
respondent Mat.a/s 0;,2)(,( "!i&e petitioner R'.# prevai&ed over private respondent Us,an, "it! votes
o$ ;),220 and 40,)3-, respective&#.4
A&&e%in% t!at t!e said e&ections in t!e Province o$ Ta"i1Ta"i "ere attended .# ,assive and "ide1sca&e
irre%'&arities, Mat.a $i&ed an E&ection Protest Ad Ca'te&a,0 "it! t!e COMELEC. Mat.a contested t!e
res'&ts in (* o't o$ 3+3 c&'stered precincts t!at $'nctioned in t!e province o$ Ta"i1Ta"i. T!e said e&ection
protest $i&ed .# Mat.a "as ra$$&ed to t!e First @ivision o$ t!e COMELEC and "as doc:eted as EPC No.
32)21-;.
Us,an a&so $i&ed an E&ection Protest Ad Ca'te&a,; "it! t!e COMELEC, contestin% t!e res'&ts in (* o't o$
t!e 3+3 c&'stered precincts in t!e Province o$ Ta"i1Ta"i. Us,an/s e&ection protest "as &i:e"ise ra$$&ed to
t!e First @ivision o$ t!e COMELEC and "as doc:eted as EPC No. 32)21--. T!e respective e&ection
protests $i&ed .# private respondents Mat.a and Us,an pra#ed, inter a&ia, $or t!e tec!nica& e9a,ination o$
t!e .a&&ots, E&ection @a# Co,p'teriJed Ioters List 7E@CIL8, t!e Ioters Re%istration Record 7IRR8, and
t!e 6oo: o$ Ioters in a&& t!e protested precincts o$ t!e province o$ Ta"i1Ta"i.-
A$ter Sadi:'& $i&ed !is Ans"er+ "it! co'nter1protest, a pre&i,inar# con$erence "as cond'cted .# t!e
COMELEC in EPC No. 32)21-;. On Nove,.er 34, 32)), t!e COMELEC iss'ed a Pre&i,inar# Con$erence
Order* in EPC No. 32)21-;. T!erea$ter, t!e COMELEC iss'ed an Order)2 dated Nove,.er 3(, 32))
"!ic! directed t!e retrieva& and de&iver# o$ t!e (* .a&&ot .o9es containin% t!e .a&&ots in t!e (* protested
c&'stered precincts as "e&& as t!e e&ection parap!erna&ia t!erein.
Mean"!i&e, in EPC No. 32)21--, t!e COMELEC, a$ter R'.#/s $i&in% o$ !er Ans"er)) "it! co'nter1protest,
cond'cted a pre&i,inar# con$erence on Can'ar# 4, 32)3. On Can'ar# 32, 32)3, t!e COMELEC iss'ed its
Pre&i,inar# Con$erence Order)3 in t!e said case.
On Can'ar# )-, 32)3, t!e COMELEC reso&ved to conso&idate EPC No. 32)21-; and EPC No. 32)21--.
On Fe.r'ar# *, 32)3, t!e retrieva& and de&iver# o$ t!e .a&&ot .o9es and ot!er e&ection doc',ents $ro, t!e
(* protested precincts "ere co,p&eted. On Fe.r'ar# 32, 32)3, t!e COMELEC First @ivision ordered t!e
reco'nt o$ t!e contested .a&&ots, directin% t!e creation o$ $ive reco'nt co,,ittees $or t!e said p'rpose.)(
On Fe.r'ar# 34, 32)3, Mat.a and Us,an $i&ed a Mani$estation and E91Parte Motion 7Re Order @ated 32
Fe.r'ar# 32)38, re<'estin% t!at t!e# .e a&&o"ed to sec're p!otocopies o$ t!e contested .a&&ots. F'rt!er,
t!e# ,oved $or a tec!nica& e9a,ination o$ t!e E@CIL, t!e IRR and t!e 6oo: o$ Ioters $or t!e contested
precincts in t!e province o$ Ta"i1Ta"i .# co,parin% t!e si%nat're and t!e t!',.,ar:s appearin% on t!e
E@CIL as a%ainst t!ose appearin% on t!e IRRs and t!e 6oo: o$ Ioters.)4
Private respondents Mat.a and Us,an averred t!at, instead o$ reco'ntin% t!e .a&&ots in t!e pi&ot precincts
constit'tin% 32P o$ t!e protested precincts, t!e COMELEC First @ivision s!o'&d order t!e tec!nica&
e9a,ination o$ t!e said e&ection parap!erna&ia $ro, t!e (+ c&'stered precincts t!at are t!e s'.5ect o$ .ot!
e&ection protests $i&ed .# t!e,.
On Marc! 0, 32)3, t!e COMELEC First @ivision iss'ed an Order)0 "!ic! %ranted t!e said e91parte
,otion $i&ed .# Mat.a and Us,an. T!'s, t!e COMELEC First @ivision directed its E&ection Records and
Statistics @epart,ent 7ERS@8 to cond'ct a tec!nica& e9a,ination o$ t!e said e&ection parap!erna&ia .#
co,parin% t!e si%nat're and t!',.,ar:s appearin% on t!e E@CIL as a%ainst t!ose appearin% on t!e
IRRs and t!e 6oo: o$ Ioters.
On Marc! *, 32)3, Sadi:'& and R'.# 5oint&# $i&ed "it! t!e COMELEC First @ivision a Stron% Mani$estation
o$ Grave Concern and Motion $or Reconsideration 7O$ t!e Order @ated Marc! 0, 32)38);. T!e# asserted
t!at t!e Marc! 0, 32)3 Order iss'ed .# t!e COMELEC First @ivision, inso$ar as it directed t!e tec!nica&
e9a,ination o$ t!e E@CIL, t!e IRR and t!e 6oo: o$ Ioters, s!o'&d .e reversed on acco'nt o$ t!e
$o&&o"in% $irst, t!e said Order "as iss'ed "it!o't d'e process since t!e COMELEC First @ivision did not
a&&o" t!e, to oppose t!e said e91parte ,otionD second, t!e COMELEC First @ivision cannot 5'st order a
tec!nica& e9a,ination in t!e a.sence o$ p'.&is!ed r'&es on t!e ,atterD and t!ird, t!e COMELEC First
@ivision co'&d not 5'st e9a,ine t!e said e&ection parap!erna&ia "it!o't vio&atin% t!e Preca'tionar#
Protection Order iss'ed .# t!e Presidentia& E&ectora& Tri.'na& in t!e protest case .et"een Man'e& Ro9as
and Ce5o,ar 6ina#.
On Marc! )0, 32)3, Mat.a and Us,an $i&ed "it! t!e COMELEC First @ivision t!eir co'nter1
,ani$estation)- to t!e said ,ani$estation and ,otion $or reconsideration $i&ed .# Sadi:'& and R'.#. T!e#
asserted t!erein t!at Sadi:'& and R'.# "ere not deprived o$ d'e process "!en t!e COMELEC First
@ivision iss'ed its Marc! )0, 32)3 Order. T!e# averred t!at t!eir respective e&ection protests and t!e
Pre&i,inar# Con$erence Orders iss'ed .# t!e COMELEC First @ivision a&& indicated t!at t!e# "o'&d ,ove
$or t!e tec!nica& e9a,ination o$ t!e said e&ection parap!erna&ia. Nonet!e&ess, t!e# pointed o't t!at
Sadi:'& and R'.# $ai&ed to e9press an# o.5ection to t!eir intended ,otion $or tec!nica& e9a,ination o$ t!e
said e&ection parap!erna&ia.
F'rt!er, Mat.a and Us,an c&ai,ed t!at said ,otion $or tec!nica& e9a,ination is not a contentio's ,otion
since t!e intended tec!nica& e9a,ination "o'&d not pre5'dice t!e ri%!ts o$ Sadi:'& and R'.# considerin%
t!at t!e sa,e on&# inc&'ded t!e E@CIL, t!e IRR and t!e 6oo: o$ Ioters, and not t!e .a&&ots.
On Marc! 3(, 32)3, Sadi:'& and R'.# t!en $i&ed "it! t!e COMELEC First @ivision t!eir Rep&#)+ to t!e
co'nter1,ani$estation $i&ed .# Mat.a and Us,an. In t'rn, Mat.a and Us,an $i&ed "it! t!e COMELEC First
@ivision t!eir Re5oinder)* on Marc! (2, 32)3. On Ma# (, 32)3, t!e COMELEC First @ivision iss'ed t!e
!erein assai&ed Order32 "!ic! denied t!e said ,otion $or reconsideration o$ t!e Marc! 0, 32)3 Order $i&ed
.# Sadi:'& and R'.#. T!e COMELEC First @ivision ,aintained t!at Sadi:'& and R'.# "ere not deprived
o$ d'e process. It pointed o't t!at t!e intention o$ Mat.a and Us,an to as: $or t!e tec!nica& e9a,ination
o$ t!e said e&ection doc',ents !ad a&"a#s .een apparent $ro, t!e $i&in% o$ t!eir separate e&ection
protests, pre&i,inar# con$erence .rie$s and t!eir intention to o$$er as evidence a&& e&ection doc',ents and
parap!erna&ia s'c! as t!e E@CIL, IRRs and 6oo: o$ Ioters on t!e protested precincts.
F'rt!er, t!e COMELEC First @ivision opined t!at t!e insin'ation asserted .# Sadi:'& and R'.# t!at t!ere
are no p'.&is!ed r'&es %overnin% t!e tec!nica& e9a,ination o$ e&ection parap!erna&ia is 'ntena.&e. It
pointed o't t!at t!e tec!nica& e9a,ination o$ e&ection parap!erna&ia is %overned .# Section ), R'&e )+ o$
COMELEC Reso&'tion No. ++24. As to t!e Preca'tionar# Protection Order iss'ed in t!e protest case
.et"een Man'e& Ro9as and Ce5o,ar 6ina#, t!e COMELEC First @ivision averred t!at it "o'&d re<'est a
c&earance $ro, t!e Presidentia& E&ectora& Tri.'na& $or t!e cond'ct o$ said tec!nica& e9a,ination.
Hence, petitioners Sadi:'& and R'.# $i&ed t!e instant petition "it! t!is Co'rt essentia&&# assertin% t!at t!e
COMELEC First @ivision co,,itted %rave a.'se o$ discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction
"!en $irst, it did not %ive t!e, t!e opport'nit# to oppose t!e ,otion $or tec!nica& e9a,ination $i&ed .#
Mat.a and Us,anD and second, it ordered t!e tec!nica& e9a,ination o$ t!e said e&ection parap!erna&ia
despite t!e &ac: o$ sanction and p'.&is!ed r'&es %overnin% s'c! e9a,ination.
T!e petition is denied.
T!e petitioners/ resort to t!e e9traordinar# re,ed# o$ certiorari to assai& an inter&oc'tor# order iss'ed .#
t!e COMELEC First @ivision is a,iss. ?A part# a%%rieved .# an inter&oc'tor# order iss'ed .# a @ivision o$
t!e COMELEC in an e&ection protest ,a# not direct&# assai& t!e order in t!is Co'rt t!ro'%! a specia& civi&
action $or certiorari. T!e re,ed# is to see: t!e revie" o$ t!e inter&oc'tor# order d'rin% t!e appea& o$ t!e
decision o$ t!e @ivision in d'e co'rse.?3)
Under t!e Constit'tion, t!e po"er o$ t!is Co'rt to revie" e&ection cases $a&&in% "it!in t!e ori%ina& e9c&'sive
5'risdiction o$ t!e COMELEC on&# e9tends to $ina& decisions or reso&'tions o$ t!e COMELEC en .anc, not
to inter&oc'tor# orders iss'ed .# a @ivision t!ereo$. Section -, Artic&e IH o$ t!e Constit'tion ,andates
Sec. -. Eac! Co,,ission s!a&& decide .# a ,a5orit# vote o$ a&& its Me,.ers an# case or ,atter .ro'%!t
.e$ore it "it!in si9t# da#s $ro, t!e date o$ its s'.,ission $or decision or reso&'tion. A case or ,atter is
dee,ed s'.,itted $or decision or reso&'tion 'pon t!e $i&in% o$ t!e &ast p&eadin%, .rie$, or ,e,orand',
re<'ired .# t!e r'&es o$ t!e Co,,ission or .# t!e Co,,ission itse&$. Un&ess ot!er"ise provided .# t!is
Constit'tion or .# &a", an# decision, order, or r'&in% o$ eac! Co,,ission ,a# .e .ro'%!t to t!e S'pre,e
Co'rt on certiorari .# t!e a%%rieved part# "it!in t!irt# da#s $ro, receipt o$ a cop# t!ereo$. 7E,p!asis o'rs8
In A,.i&, Cr. v. COMELEC,33 t!is Co'rt e&'cidated on t!e i,port o$ t!e said provision in t!is "ise
=e !ave interpreted t!is provision to ,ean $ina& orders, r'&in%s and decisions o$ t!e COMELEC rendered
in t!e e9ercise o$ its ad5'dicator# or <'asi15'dicia& po"ers.? T!is decision ,'st .e a $ina& decision or
reso&'tion o$ t!e Co,e&ec en .anc, not o$ a division, certain&# not an inter&oc'tor# order o$ a division. T!e
S'pre,e Co'rt !as no po"er to revie" via certiorari, an inter&oc'tor# order or even a $ina& reso&'tion o$ a
@ivision o$ t!e Co,,ission on E&ections.
T!e ,ode .# "!ic! a decision, order or r'&in% o$ t!e Co,e&ec en .anc ,a# .e e&evated to t!e S'pre,e
Co'rt is .# t!e specia& civi& action o$ certiorari 'nder R'&e ;0 o$ t!e )*;4 Revised R'&es o$ Co'rt, no"
e9press&# provided in R'&e ;4, )**- R'&es o$ Civi& Proced're, as a,ended.
R'&e ;0, Section ), )**- R'&es o$ Civi& Proced're, as a,ended, re<'ires t!at t!ere .e no appea&, or an#
p&ain, speed# and ade<'ate re,ed# in t!e ordinar# co'rse o$ &a". A ,otion $or reconsideration is a p&ain
and ade<'ate re,ed# provided .# &a". Fai&'re to a.ide .# t!is proced'ra& re<'ire,ent constit'tes a
%ro'nd $or dis,issa& o$ t!e petition.
In &i:e ,anner, a decision, order or reso&'tion o$ a division o$ t!e Co,e&ec ,'st .e revie"ed .# t!e
Co,e&ec en .anc via a ,otion $or reconsideration .e$ore t!e $ina& en .anc decision ,a# .e .ro'%!t to t!e
S'pre,e Co'rt on certiorari. T!e pre1re<'isite $i&in% o$ a ,otion $or reconsideration is ,andator#. 9 9 9.3(
7Citations o,itted and e,p!asis s'pp&ied8
Here, t!e Orders dated Marc! 0, 32)3 and Ma# (, 32)3 iss'ed .# t!e First @ivision o$ t!e COMELEC
"ere ,ere&# inter&oc'tor# orders since t!e# on&# disposed o$ an incident in t!e ,ain case i.e. t!e propriet#
o$ t!e tec!nica& e9a,ination o$ t!e said e&ection parap!erna&ia. T!'s, t!e proper reco'rse $or t!e
petitioners is to a"ait t!e decision o$ t!e COMELEC First @ivision in t!e e&ection protests $i&ed .# Mat.a
and Us,an, and s!o'&d t!e# .e a%%rieved t!ere.#, to appea& t!e sa,e to t!e COMELEC en .anc .# $i&in%
a ,otion $or reconsideration.34
T!e petitioners, citin% t!e case o$ N!o v. COMELEC,30 nevert!e&ess insist t!at t!is Co'rt ,a# ta:e
co%niJance o$ t!e instant Petition $or Certiorari since t!e COMELEC en .anc is not t!e proper $or', in
"!ic! t!e said inter&oc'tor# orders iss'ed .# t!e COMELEC First @ivision can .e revie"ed.
T!e petitioners/ re&iance on N!o is ,isp&aced. In N!o, t!e iss'e "as "!et!er a @ivision o$ t!e COMELEC
,a# ad,it an ans"er "it! co'nter1protest "!ic! "as $i&ed .e#ond t!e re%&e,entar# period. T!is Co'rt
!e&d t!at t!e COMELEC First @ivision %rave&# a.'sed its discretion "!en it ad,itted t!e ans"er "it!
co'nter1protest t!at "as .e&ated&# $i&ed.
On t!e propriet# o$ a $i&in% a Petition $or Certiorari "it! t!is Co'rt sans an# ,otion $or reconsideration
!avin% .een $i&ed "it! t!e COMELEC en .anc, it "as !e&d t!erein t!at, as an e9ception, direct resort to
t!is Co'rt via certiorari assai&in% an inter&oc'tor# order ,a# .e a&&o"ed "!en a @ivision o$ t!e COMELEC
co,,its %rave a.'se o$ discretion tanta,o'nt to &ac: o$ 5'risdiction. T!'s
As to t!e iss'e o$ "!et!er or not t!e case s!o'&d .e re$erred to t!e COMELEC en .anc, t!is Co'rt $inds
t!e respondent COMELEC First @ivision correct "!en it !e&d in its order dated Fe.r'ar# 3+, )**; t!at no
$ina& decision, reso&'tion or order !as #et .een ,ade "!ic! "i&& necessitate t!e e&evation o$ t!e case and
its records to t!e Co,,ission en .anc. No &ess t!an t!e Constit'tion re<'ires t!at t!e e&ection cases ,'st
.e !eard and decided $irst in division and an# ,otion $or reconsideration o$ decisions s!a&& .e decided .#
t!e co,,ission en .anc. Apparent&#, t!e orders dated C'&# 3;, )**0, Nove,.er )0 )**0 and Fe.r'ar#
3+, )**; and t!e ot!er orders re&atin% to t!e ad,ission o$ t!e ans"er "it! co'nter1protest are iss'ances
o$ a Co,,ission in division and are a&& inter&oc'tor# orders .eca'se t!e# ,ere&# r'&e 'pon an incidenta&
iss'e re%ardin% t!e ad,ission o$ Espinosa/s ans"er "it! co'nter1protest and do not ter,inate or $ina&&#
dispose o$ t!e case as t!e# &eave so,et!in% to .e done .e$ore it is $ina&&# decided on t!e ,erits. In s'c! a
sit'ation, t!e r'&e is c&ear t!at t!e a't!orit# to reso&ve incidenta& ,atters o$ a case pendin% in a division,
&i:e t!e <'estioned inter&oc'tor# orders, $a&&s on t!e division itse&$, and not on t!e Co,,ission en .anc. 9 9
9
9 9 9 9
F'rt!er,ore, a &oo: at Section 3, R'&e ( o$ t!e COMELEC R'&es o$ Proced're con$ir,s t!at t!e s'.5ect
case does not $a&& on an# o$ t!e instances over "!ic! t!e Co,,ission en .anc can ta:e co%niJance o$. It
reads as $o&&o"s
?Section 3. T!e Co,,ission en .anc. 1 T!e Co,,ission s!a&& sit en .anc in cases !ereina$ter speci$ica&&#
provided, or in pre1proc&a,ation cases 'pon a vote o$ a ,a5orit# o$ t!e ,e,.ers o$ a Co,,ission, or in a&&
ot!er cases "!ere a division is not a't!oriJed to act, or "!ere, 'pon a 'nani,o's vote o$ a&& t!e ,e,.ers
o$ a @ivision, an inter&oc'tor# ,atter or iss'e re&ative to an action or proceedin% .e$ore it is decided to .e
re$erred to t!e Co,,ission en .anc.? In t!e instant case, it does not appear t!at t!e s'.5ect controvers# is
one o$ t!e cases speci$ica&&# provided 'nder t!e COMELEC R'&es o$ Proced're in "!ic! t!e Co,,ission
,a# sit en .anc. Neit!er is it s!o"n t!at t!e present controvers# a case "!ere a division is not a't!oriJed
to act nor a sit'ation "!erein t!e ,e,.ers o$ t!e First @ivision 'nani,o's&# voted to re$er t!e s'.5ect
case to t!e Co,,ission en .anc. C&ear&#, t!e Co,,ission en .anc, 'nder t!e circ',stances s!o"n
a.ove, can not .e t!e proper $or', "!ic! t!e ,atter concernin% t!e assai&ed inter&oc'tor# orders can .e
re$erred to.
In a sit'ation s'c! as t!is "!ere t!e Co,,ission in division co,,itted %rave a.'se o$ discretion or acted
"it!o't or in e9cess o$ 5'risdiction in iss'in% inter&oc'tor# orders re&ative to an action pendin% .e$ore it and
t!e controvers# did not $a&& 'nder an# o$ t!e instances ,entioned in section 3, R'&e ( o$ t!e COMELEC
R'&es o$ Proced're, t!e re,ed# o$ t!e a%%rieved part# is not to re$er t!e controvers# to t!e Co,,ission
en .anc as t!is is not per,issi.&e 'nder its present r'&es .'t to e&evate it to t!is Co'rt via a petition $or
certiorari 'nder R'&e ;0 o$ t!e R'&es o$ Co'rt.3; 7Citations o,itted and e,p!asis o'rs8
T!'s, e9ceptiona&&#, t!is Co'rt ,a# ta:e co%niJance o$ a certiorari action directed a%ainst an inter&oc'tor#
order iss'ed .# a @ivision o$ t!e COMELEC "!en t!e $o&&o"in% circ',stances are present $irst, t!e order
"as iss'ed "it!o't 5'risdiction or in e9cess o$ 5'risdiction or "it! %rave a.'se o$ discretion tanta,o'nt to
&ac: or e9cess o$ 5'risdictionD and second, 'nder t!e COMELEC R'&es o$ Proced're, t!e s'.5ect o$ t!e
controvers# is a ,atter "!ic! 7)8 t!e COMELEC en .anc ,a# not sit and consider or 738 a @ivision is not
a't!oriJed to act or 7(8 t!e ,e,.ers o$ t!e @ivision 'nani,o's&# vote to re$er to t!e COMELEC en
.anc.3-
T!e e9ception in N!o does not app&# in t!e instant case since t!e COMELEC First @ivision is a't!oriJed
to act on t!e e91parte ,otion $or t!e tec!nica& e9a,ination o$ t!e said e&ection parap!erna&ia. T!e
COMELEC First @ivision !as a&read# ac<'ired 5'risdiction over t!e e&ection protests $i&ed .# Mat.a and
Us,an. Conco,itant "it! s'c! ac<'isition o$ 5'risdiction is t!e a't!orit# o$ t!e COMELEC First @ivision to
r'&e on t!e iss'es raised .# t!e parties and a&& incidents arisin% t!ere$ro,, inc&'din% t!e a't!orit# to act on
t!e e91parte ,otion $or tec!nica& e9a,ination o$ said e&ection parap!erna&ia.
In N!o, t!e COMELEC First @ivision did not ac<'ire 5'risdiction on t!e ans"er "it! co'nter1protest since it
"as $i&ed .e#ond t!e re%&e,entar# period and, conse<'ent&#, did not !ave an# a't!orit# to act on t!e
iss'es raised t!erein and a&& incidents arisin% t!ere$ro,. T!'s
It is "ort!# to note t!at as ear&# as in t!e case o$ Arrieta vs. Rodri%'eJ, t!is Co'rt !ad $ir,&# sett&ed t!e
r'&e t!at t!e co'nter1protest ,'st .e $i&ed "it!in t!e period provided .# &a", ot!er"ise, t!e $or', &oses its
5'risdiction to entertain t!e .e&ated&# $i&ed co'nter1protest. In t!e case at .ar, t!ere is no <'estion t!at t!e
ans"er "it! co'nter1protest o$ Espinosa "as $i&ed o'tside t!e re%&e,entar# period provided $or .# &a". As
s'c!, t!e COMELEC First @ivision !as no 5'risdictiona& a't!orit# to entertain t!e .e&ated ans"er "it!
co'nter1protest ,'c! &ess pass 'pon and decide t!e iss'es raised t!erein. It $o&&o"s t!ere$ore t!at t!e
order o$ C'&# 3;, )**0 "!ic! pertains to t!e ad,ission o$ t!e ans"er "it! co'nter1protest o$ Espinosa as
"e&& as t!e ot!er conse<'ent orders i,p&e,entin% t!e order o$ ad,ission iss'ed .# t!e COMELEC First
@ivision are void $or !avin% .een iss'ed "it!o't 5'risdiction. Even i$ petitioner N!o did not $i&e a ,otion $or
reconsideration o$ t!e order dated C'&# 3;, )**0 ad,ittin% t!e ans"er "it! co'nter1protest, t!e
5'risdictiona& in$ir,it#, .ro'%!t a.o't .# t!e &ate $i&in% o$ t!e ans"er to t!e protest, persist and can not .e
c'red .# t!e o,ission on t!e part o$ t!e protestee1petitioner to see: a reconsideration o$ t!e order dated
C'&# 3;, )**0.3+ 7Citation o,itted and e,p!asis o'rs8
Even i$ t!is Co'rt is to disre%ard t!e proced'ra& &apse co,,itted .# t!e petitioners and r'&e on t!e iss'es
raised, t!e instant petition "o'&d sti&& .e denied.
T!e petitioners c&ai, t!at t!e# "ere denied d'e process "!en t!e COMELEC %ranted t!e ,otion $or
tec!nica& e9a,ination $i&ed .# Mat.a and Us,an "it!o't %ivin% t!e, t!e opport'nit# to oppose t!e said
,otion.
T!is Co'rt does not a%ree.
It .ears stressin% t!at t!e COMELEC, in e&ection disp'tes, is not d't#1.o'nd to noti$# and direct a part#
t!erein to $i&e an opposition to a ,otion $i&ed .# t!e ot!er part#. It is inc',.ent 'pon t!e part# concerned,
i$ !eOs!e dee,s it necessar#, to $i&e an opposition to a ,otion "it!in $ive da#s $ro, receipt o$ a cop# o$ t!e
sa,e "it!o't a"aitin% $or t!e COMELEC/s directive to do so. On t!is score, Section (, R'&e * o$
COMELEC Reso&'tion No. ++243* c&ear&# provides t!at
Sec. (. No !earin%s on ,otions. G Motions s!a&& not .e set $or !earin% 'n&ess t!e Co,,ission directs
ot!er"ise. Ora& ar%',ent in s'pport t!ereo$ s!a&& .e a&&o"ed on&# 'pon t!e discretion o$ t!e Co,,ission.
T!e adverse part# ,a# $i&e opposition $ive da#s $ro, receipt o$ t!e ,otion, 'pon t!e e9piration o$ "!ic!
s'c! ,otion is dee,ed s'.,itted $or reso&'tion. T!e Co,,ission s!a&& reso&ve t!e ,otion "it!in $ive
da#s. 7E,p!asis o'rs8
I$ t!e part# concerned, despite receipt o$ a cop# o$ t!e ,otion t!at "as $i&ed "it! t!e COMELEC, did not
$i&e an opposition to t!e said ,otion, t!e ,otion "o'&d .e dee,ed s'.,itted $or reso&'tion 'pon t!e
e9piration o$ t!e period to $i&e an opposition t!ereto.
It s!o'&d .e stressed t!at one o$ t!e $actors t!at s!o'&d .e considered in e&ection protests is e9pedienc#.
Proceedin%s in e&ection protests are specia& and e9peditio's and t!e ear&# reso&'tion o$ s'c! cases s!o'&d
not .e !a,pered .# an# 'nnecessar# o.servance o$ proced'ra& r'&es.(2 ?T!e proceedin%s s!o'&d not .e
enc',.ered .# de&a#s. A&& o$ t!ese are .eca'se t!e ter, o$ e&ective o$$ice is &i:e"ise s!ort. T!ere is t!e
persona& sta:e o$ t!e contestants "!ic! %enerates $e'ds and discords. A.ove a&& is t!e p'.&ic interest.
Tit&e to p'.&ic e&ective o$$ice ,'st not .e &e$t &on% 'nder c&o'd. E$$icienc# o$ p'.&ic ad,inistration s!o'&d
not .e i,paired. It is t!'s 'nderstanda.&e t!at pit$a&&s "!ic! ,a# retard t!e deter,ination o$ e&ection
contests s!o'&d .e avoided.?()
Here, t!e petitioners did not $i&e an opposition to t!e said ,otion $or tec!nica& e9a,ination t!at "as $i&ed
.# Mat.a and Us,an on Fe.r'ar# 34, 32)3. It "as on&# a$ter t!e COMELEC First @ivision iss'ed its
Marc! 0, 32)3 Order t!at t!e petitioners decided to re%ister t!eir opposition to t!e intended tec!nica&
e9a,ination, a&.eit in t!e $or, o$ a ,otion $or reconsideration o$ t!e said Order. Contrar# to t!e
petitioners/ c&ai,, Section (, R'&e * o$ COMELEC Reso&'tion No. ++24 %ave t!e, t!e opport'nit# to raise
t!eir o.5ections to t!e said ,otion $or tec!nica& e9a,ination. Ho"ever, $or reasons :no"n on&# to t!e,,
petitioners did not $i&e an# opposition to t!e said ,otion. Accordin%&#, it is t!e petitioners t!e,se&ves and
not t!e COMELEC First @ivision "!o s!o'&d .e $a'&ted $or t!eir predica,ent.
F'rt!er, t!is Co'rt cannot see !o" d'e process "as denied to t!e petitioners in t!e iss'ance o$ t!e
COMELEC First @ivision/s Marc! 0, 32)3 Order. T!e petitioners "ere a.&e to present t!eir opposition to
t!e said ,otion $or tec!nica& e9a,ination in t!eir ,ani$estation and ,otion $or reconsideration "!ic! t!e#
$i&ed "it! t!e COMELEC First @ivision on Marc! *, 32)3. Indeed, t!e petitioners/ o.5ections to t!e
tec!nica& e9a,ination o$ t!e said e&ection parap!erna&ia "ere e9!a'stive&# disc'ssed .# t!e COMELEC
First @ivision in its Ma# (, 32)3 Reso&'tion. Havin% $i&ed a ,otion $or reconsideration o$ t!e COMELEC
First @ivision/s Marc! 0, 32)3 Order, t!e petitioners/ c&ai, o$ denia& o$ d'e process is c&ear&# 'n$o'nded.
T!e petitioners s!o'&d .e re,inded t!at d'e process does not necessari&# ,ean or re<'ire a !earin%, .'t
si,p&# an opport'nit# or ri%!t to .e !eard. One ,a# .e !eard, not so&e&# .# ver.a& presentation .'t a&so,
and per!aps ,an# ti,es ,ore credita.&# and predicta.&e t!an ora& ar%',ent, t!ro'%! p&eadin%s. In
ad,inistrative proceedin%s ,oreover, tec!nica& r'&es o$ proced're and evidence are not strict&# app&iedD
ad,inistrative process cannot .e $'&&# e<'ated "it! d'e process in its strict 5'dicia& sense. Indeed,
deprivation o$ d'e process cannot .e s'ccess$'&&# invo:ed "!ere a part# "as %iven t!e c!ance to .e
!eard on !is ,otion $or reconsideration.(3
Anent t!e iss'e on t!e tec!nica& e9a,ination o$ e&ection parap!erna&ia, t!e petitioners contend t!at t!e
COMELEC First @ivision cannot order a tec!nica& e9a,ination o$ t!e said e&ection parap!erna&ia since
t!ere is as #et no p'.&is!ed r'&e t!ere$or. T!e# assert t!at Section ), R'&e )+ o$ COMELEC Reso&'tion
No. ++24, t!e r'&e re&ied 'pon .# t!e COMELEC First @ivision in orderin% a tec!nica& e9a,ination, is
va%'e as it $ai&ed to provide t!e doc',ents t!at s!o'&d .e s'.5ected to tec!nica& e9a,ination in e&ection
protest cases.
At t!e core o$ t!e petitioners/ assertion is t!e po"er o$ t!e COMELEC First @ivision to order t!e tec!nica&
e9a,ination o$ t!e said e&ection parap!erna&ia. T!is Co'rt a%rees "it! t!e petitioners t!at Section ), R'&e
)+ o$ COMELEC Reso&'tion No. ++24 does not e9press&# a't!oriJe t!e cond'ct o$ tec!nica& e9a,ination
o$ e&ection parap!erna&ia as it ,ere&# provides $or t!e proced're to .e $o&&o"ed in t!e presentation and
reception o$ evidence in e&ection protest cases.
Section ), R'&e )+ o$ COMELEC Reso&'tion No. ++24, in part, reads
Sec. ). Presentation and reception o$ evidenceD order o$ !earin%. 1 T!e reception o$ evidence on a&&
,atters or iss'es raised in t!e protest and co'nter1protests s!a&& .e presented and o$$ered in a !earin%
'pon co,p&etion o$ 7a8 t!e reco'nt o$ .a&&ots, or re1ta.'&ation o$ e&ection doc',ents, or 7.8 t!e tec!nica&
e9a,ination, i$ "arranted.
9 9 9 9
=!i&e Section ), R'&e )+ o$ COMELEC Reso&'tion No. ++24 does not e9p&icit&# provide $or t!e r'&e on t!e
tec!nica& e9a,ination o$ e&ection parap!erna&ia, it does not ,ean, !o"ever, t!at t!e COMELEC First
@ivision does not !ave t!e po"er to order t!e cond'ct o$ s'c! tec!nica& e9a,ination.
T!e a.sence o$ a r'&e "!ic! speci$ica&&# ,andates t!e tec!nica& e9a,ination o$ t!e said e&ection
parap!erna&ia does not ,ean t!at t!e COMELEC First @ivision is .arred $ro, iss'in% an order $or t!e
cond'ct t!ereo$. T!e po"er o$ t!e COMELEC First @ivision to order t!e tec!nica& e9a,ination e&ection
parap!erna&ia in e&ection protest cases ste,s $ro, its ?e9c&'sive ori%ina& 5'risdiction over a&& contest
re&atin% to t!e e&ections, ret'rns and <'a&i$ications o$ a&& e&ective re%iona&, provincia& and cit# o$$icia&s?.((
Ot!er"ise stated, t!e e9press %rant o$ po"er to t!e COMELEC to reso&ve e&ection protests carries "it! it
t!e %rant o$ a&& ot!er po"ers necessar#, proper, or incidenta& to t!e e$$ective and e$$icient e9ercise o$ t!e
po"er e9press&# %ranted. Ieri&#, t!e e9c&'sive ori%ina& 5'risdiction con$erred .# t!e constit'tion to t!e
COMELEC to sett&e said e&ection protests inc&'des t!e a't!orit# to order a tec!nica& e9a,ination o$
re&evant e&ection parap!erna&ia, e&ection ret'rns and .a&&ots in order to deter,ine "!et!er $ra'd and
irre%'&arities attended t!e canvass o$ t!e votes.
T!ere is no %ainsa#in% t!at t!e COMELEC is ,andated .# &a" to reso&ve e&ection cases e9peditio's&# and
pro,pt&#. ?For in t!is specie o$ controversies invo&vin% t!e deter,ination o$ t!e tr'e "i&& o$ t!e e&ectorate,
ti,e indeed is o$ para,o'nt i,portance second to none per!aps, e9cept $or t!e %en'ine "i&& o$ t!e
,a5orit#. To .e s're, an e&ection controvers# "!ic! .# its ver# nat're to'c!es 'pon t!e ascertain,ent o$
t!e peop&e/s c!oice, as %&eaned $ro, t!e ,edi', o$ t!e .a&&ot, s!o'&d .e reso&ved "it! 't,ost dispatc!,
precedence and re%ard to d'e process.?(4
Conco,itant to t!e COMELEC/s d't# to e9peditio's&# reso&ve e&ection cases is t!e a't!orit# to resort to
ever# reasona.&e and e$$icient ,eans avai&a.&e to it to sett&e t!e controvers#. T!e COMELEC is t!'s
en5oined, ?not on&# to ,aintain its sense o$ 'r%enc# in reso&vin% t!ese cases, .'t a&so to e9p&ore ever#
reasona.&e and $easi.&e ,eans o$ ascertainin% "!ic! candidate "as d'&# e&ected.?(0 T!'s, t!is Co'rt !as
dec&ared
An e&ection contest, 'n&i:e an ordinar# civi& action, is c&ot!ed "it! a p'.&ic interest. T!e p'rpose o$ an
e&ection protest is to ascertain "!et!er t!e candidate proc&ai,ed .# t!e .oard o$ canvassers is t!e &a"$'&
c!oice o$ t!e peop&e. =!at is so'%!t is t!e correction o$ t!e canvass o$ votes, "!ic! "as t!e .asis o$
proc&a,ation o$ t!e "innin% candidate. An e&ection contest t!ere$ore invo&ves not on&# t!e ad5'dication o$
private and pec'niar# interests o$ riva& candidates .'t para,o'nt to t!eir c&ai,s is t!e deep p'.&ic
concern invo&ved and t!e need o$ dispe&&in% t!e 'ncertaint# over t!e rea& c!oice o$ t!e e&ectorate. And t!e
co'rt !as t!e correspondin% d't# to ascertain .# a&& ,eans "it!in its co,,and "!o is t!e rea& candidate
e&ected .# t!e peop&e.(; 7E,p!asis o'rs8
Here, t!e tec!nica& e9a,ination ordered .# t!e COMELEC First @ivision, .# co,parin% t!e si%nat're and
t!e t!',.,ar:s appearin% on t!e E@CIL as a%ainst t!ose appearin% on t!e IRRs and t!e 6oo: o$
Ioters, is a reasona.&e, e$$icient and e9peditio's ,eans o$ deter,inin% t!e tr't! or $a&sit# o$ t!e
a&&e%ations o$ $ra'd and irre%'&arities in t!e canvass o$ t!e votes in t!e province o$ Ta"i1Ta"i. Accordin%&#,
t!e COMELEC First @ivision did not co,,it an# a.'se o$ discretion "!en it a&&o"ed t!e tec!nica&
e9a,ination o$ t!e said e&ection parap!erna&ia.
=HEREFORE, in consideration o$ t!e $ore%oin% dis<'isitions, t!e petition is @ENIE@. T!e assai&ed Order
dated Ma# (, 32)3 iss'ed .# t!e First @ivision o$ t!e Co,,ission on E&ections in EPC Nos. 32)21-; and
32)21-- is AFFIRME@.
CGP TRANSPORTATION AN@ SERIICES CORPORATION, Petitioner, v. PCI LEASING AN@
FINANCE, INCORPORATE@, Respondent.
Petitioner CGP o.tained t"o &oans $ro, respondent PCI, t!e co&&ective principa& s', o$ "!ic! a,o'nted
to Si9teen Mi&&ion 7P);,222,222.228 pesos. 6ot! &oans "ere sec'red .# rea& estate ,ort%a%es over t"o
parce&s o$ &and- &ocated in 6o. C'pan%, M'ntin&'pa Cit#, and covered .# Trans$er Certi$icates o$ Tit&e Nos.
)-3()* and )+234) iss'ed .# t!e Re%istr# o$ @eeds o$ Ma:ati Cit#.
Petitioner CGP $ai&ed to pa# its inde.tedness to respondent PCI p'rs'ant to t!e ter,s and conditions
e9tant on t!e $ace o$ t!e Pro,issor# Notes coverin% t!e t"o &oans a$ore,entioned. Accordin%&#, t!e &atter
$i&ed a petition $or e9tra15'dicia& $orec&os're o$ t!e rea& properties s'.5ect o$ t!e Rea& Estate Mort%a%e and
t!e A,end,ent o$ Rea& Estate Mort%a%e, p'rs'ant to Act No. ()(0,+ as a,ended.
@'rin% t!e p'.&ic a'ction !e&d t!erea$ter, respondent PCI "as t!e !i%!est .idder o$ t!e s'.5ect rea&
properties. Conse<'ent&#, t!e correspondin% Certi$icates o$ Sa&e "ere iss'ed in t!e na,e o$ respondent
PCI.
On )* Nove,.er )**-, t!e a.ove1,entioned Certi$icates o$ Sa&e "ere re%istered "it! t!e Re%istr# o$
@eeds o$ Ma:ati Cit#.
Petitioner CGP, !o"ever, $ai&ed to redee, t!e rea& properties d'rin% t!e rede,ption periodD t!'s,
respondent PCI insisted t!at act'a& possession t!ereo$ .e t'rned over to it. E9pected&#, petitioner CGP
.a&:ed at t!e idea and re$'sed t!e de,and. On )3 Apri& )***, respondent PCI* $i&ed .e$ore t!e Re%iona&
Tria& Co'rt o$ M'ntin&'pa Cit#, 6ranc! 30;, and doc:eted as LRC Case No. **1232, a petition $or an e91
parte iss'ance o$ a =rit o$ Possession. Petitioner CGP opposed t!e s'.5ect petition.
On )0 Nove,.er 3222, t!e RTC iss'ed an Order r'&in% a%ainst oppositor 7!erein petitioner8 CGPQs
stance. T!e Order, in part, reads
T!e petitioner is correct, t!e &a" e9press&# a't!oriJed t!e p'rc!aser to petition $or a "rit o$ possession
d'rin% t!e rede,ption period .# $i&in% an E91parte Motion 'nder oat! $or t!at p'rpose and t!at t!e
pendenc# o$ an# separate civi& action can .e no o.stac&e to t!e iss'ance o$ t!e "rit o$ possession "!ic! is
a ,inisteria& act o$ t!e tria& co'rt a$ter a tit&e on t!e propert# !as .een conso&idated in t!e ,ort%a%e.
Accordin%&#, E91parte reception o$ evidence is sc!ed'&ed on @ece,.er ), 3222, at 322 oQc&oc: in t!e
a$ternoon.)2
In its Motion $or Reconsideration, petitioner CGP averred t!at t!e sc!ed'&ed !earin% "as vio&ative o$ t!e
"rit o$ pre&i,inar# in5'nction iss'ed in its $avor .# t!e sa,e tria& co'rt, a&.eit in a di$$erent case invo&vin%
t!e sa,e parties 1 partic'&ar&# Civi& Case No. **13(4, respectin% a co,p&aint $or t!e ann'&,ent o$ t!e
$orec&os're proceedin%s ear&ier ,entioned. It ar%'ed t!at not"it!standin% t!e $act t!at t!e co,p&aint $or
ann'&,ent o$ $orec&os're proceedin%s !ad a&read# .een dis,issed .# t!e tria& co'rt, s'c! order !ad not
#et .eco,e $ina& and e9ec'tor# inas,'c! as it "as appea&ed to t!e Co'rt o$ Appea&s. T!at .ein% t!e
case, t!e "rit s!o'&d sti&& .e considered in e$$ect and s'.sistin%.
On 3- Marc! 322), t!e RTC reconsidered its Order, viJ
EFFindin% t!e %ro'nds re&ied 'pon .# t!e oppositor to .e ,eritorio's and considerin% $'rt!er t!at t!ere are
severa& ,otions to .e reso&ved #et .# t!e co'rt, t!e Motion $or Reconsideration is GRANTE@, t!e order o$
t!is co'rt dated Octo.er 32, 3222 is set aside and t!e e91parte proceedin%s is !ere.# n'&&i$ied and set
aside. T!e Pre&i,inar# In5'nction previo's&# iss'ed is reinstated.))
Conse<'ent&#, it "as respondent PCIQs t'rn to $i&e a Motion $or Reconsideration.
In an Order dated (2 A'%'st 322), t!e RTC stood pat on its position t!at t!e Opposition $i&ed .# !erein
petitioner CGP raised iss'es t!at needed to .e !eard in t!e presence o$ .ot! parties. Said Order stated
T!is reso&ves t!e Motion $or Reconsideration $i&ed .# petitioner on t!e order o$ t!is co'rt dated Marc! 3-,
322), "!ic! %ranted t!e ,otion $or reconsideration $i&ed .# Oppositor to t!e Order dated Nove,.er )0,
3222.
T!ere is .asis to t!e pendin% ,otion o$ petitioner inso$ar as t!e reinstate,ent o$ pre&i,inar# in5'nction
ear&ier iss'ed .# t!is co'rt and s'.,ission $or reso&'tion o$ ,otions are concerned, as t!e# a&& re$er to
Civi& Case No. **13(4. T!is Co'rt reco%niJes t!e sna$' .ro'%!t a.o't .# t!e severa& p&eadin%s and
pendin% incidents .ot! in t!e instant case and Civi& Case No. **13(4 "!ic! invo&ved t!e sa,e parties and
t!e sa,e s'.5ect ,atter.
6e t!at as it ,a#, t!is co'rt, a$ter a care$'& revie" o$ t!e veri$ied opposition o$ t!e oppositor, inc&'din% it
anne9es, is not inc&ined to %rant t!e e91parte proceedin%s as asserted .# t!e petitioner. T!is co'rt
revie"ed t!e %ro'nds o$ oppositor in its ,otion $or reconsideration o$ t!e order dated Nove,.er )0, 3222,
"!ic! a&&o"ed e91parte presentation o$ evidence in t!is case. T!ese %ro'nds are 7a8 Presence on record
o$ a veri$ied opposition to t!e petition and 7.8 t!ere "as an in5'nction ear&ier iss'ed .# t!is co'rt on
Septe,.er (, )*** on t!e co,p&aint $or ann'&,ent o$ $orec&os're proceedin%s o$ t!e s'.5ect properties
$i&ed .# oppositor in Civi& Case No. **13(4 a&so .e$ore t!is co'rt.
It is t!e considered vie" o$ t!is co'rt t!at t!e veri$ied opposition on record 5oined iss'es t!at need to .e
!eard in t!e presence o$ .ot! parties, a .asic re<'ire,ent o$ d'e process. T!e %enera& r'&e $ro"ns EonF
e91parte proceedin%s. =!en t!is co'rt iss'ed a "rit o$ in5'nction in Civi& Case No. **13(4, ta:in% into
consideration t!e a&&e%ations in t!e co,p&aint it "as convinced t!at t!ere "as a need $or a stat's <'o
.et"een t!e parties 'nti& a&& t!e iss'es 5oined t!erein are !eard and disposed. On tec!nica& %ro'nd, t!e
co,p&aint in Civi& Case No. **13(4 "as dis,issed .# t!is co'rt. A&t!o'%! it ,a# .e too &ate $or t!is co'rt
to sa#, t!ere "ere indeed pendin% incidents t!at needed to .e reso&ved in Civi& Case No. **13(4.
Precise&#, "!en t!is co'rt ,entioned o$ pendin% ,otions, it "as act'a&&# re$errin% to t!e pendin% incidents
in Civi& Case No. **13(4, as correct&# pointed o't .# t!e Oppositor, petitioner at t!e ti,e o$ t!e dis,issa&
o$ t!e co,p&aint in Civi& Case No. **13(4, it !as not $i&ed #et its ans"er to t!e co,p&aint in intervention o$
t!e p&ainti$$1intervenor. Petitioner, apparent&#, too: advanta%e o$ t!e inadvertence in t!e iss'ance o$ t!e
order o$ dis,issa& in Civi& Case No. **13(4 "!en it :ept si&ent o$ t!e $act t!at it !as not $i&ed #et an ans"er
to t!e co,p&aint in intervention.
T!is co'rt is co%niJant o$ t!e r'&e t!at t!e dis,issa& o$ t!e co,p&aint on t!e ,erits a'to,atica&&# disso&ves
t!e in5'nction iss'ed t!erein even i$ t!e decision or order o$ dis,issa& is on appea&. T!e dis,issa& o$ t!is
co'rt !o"ever, o$ t!e co,p&aint in Civi& Case No. **13(4 "as not t!e res'&t o$ tria& on t!e ,erits .'t rat!er
on ,ere tec!nica&it#. It is in t!is &i%!t t!at t!is co'rt .e&ieves t!at considerin% t!at t!e disso&'tion o$ t!e
in5'nction "as t!e conse<'ence o$ t!e order o$ dis,issa& o$ t!e co,p&aint in Civi& Case No. **13(4, "!ic!
"as not t!e res'&t o$ a tria& on t!e ,erits, and t!e said order o$ dis,issa& is no" t!e s'.5ect o$ appea&,
t!ere is a need to s'spend t!e proceedin%s in t!is case 'nti& t!e said appea& is disposed.)3
A%%rieved, respondent PCI $i&ed .e$ore t!is Co'rt, a Petition $or Certiorari 'nder R'&e ;0 o$ t!e Revised
R'&es o$ Co'rt, pre,ised on t!e $o&&o"in% %ro'nds
). THE PU6LIC RESPON@ENT ACTE@ =ITH GRAIE A6USE OF @ISCRETION, AMOUNTING TO
LACN OR IN EHCESS OF CURIS@ICTION, =HEN IT NULLIFIE@ AN@ SET ASI@E THE EH PARTE
PROCEE@INGS IN THE CASE A AUO.
3. THE PU6LIC RESPON@ENT ACTE@ =ITH GRAIE A6USE OF @ISCRETION, AMOUNTING TO
LACN OR IN EHCESS OF CURIS@ICTION, =HEN IT REINSTATE@ IN THE CASE A AUO THE
PRELIMINARB INCUNCTION =HICH =AS ISSUE@ IN ANOTHER CASE 7CIIIL CASE NO. **13(48.
(. THE PU6LIC RESPON@ENT ACTE@ =ITH GRAIE A6USE OF @ISCRETION, AMOUNTING TO
LACN OR IN EHCESS OF CURIS@ICTION, =HEN IT SET ASI@E IN THE CASE A AUO THE OR@ER
@ATE@ 32 OCTO6ER 3222 =HICH =AS ISSUE@ IN CIIIL CASE NO. **13(4.
4. THE PU6LIC RESPON@ENT ACTE@ =ITH GRAIE A6USE OF @ISCRETION, AMOUNTING TO
LACN OR IN EHCESS OF CURIS@ICTION, =HEN IT SUSPEN@E@ THE PROCEE@INGS A AUO UNTIL
THE APPEAL IN CIIIL CASE NO. **13(4 IS RESOLIE@.)(
T!e petition 7G.R. No. )024+(8 "as, !o"ever, re$erred to t!e Co'rt o$ Appea&s .# t!is Co'rt $or
appropriate action in a Reso&'tion,)4 dated ( @ece,.er 322), p'rs'ant to Section ;, R'&e 0; o$ t!e )**-
Revised R'&es o$ Civi& Proced're, $act'a& iss'es .ein% invo&ved.
In response to t!e re$erra&, t!e Co'rt o$ Appea&s doc:eted t!e petition as CA G.R. SP No. ;+03+.
In its @ecision pro,'&%ated on 3; Marc! 3224, t!e Co'rt o$ Appea&s %ranted !erein respondent PCIQs
petition and set aside t!e RTC Order dated (2 A'%'st 322). T!e dispositive portion reads
=HEREFORE, t!e instant petition is !ere.# GRANTE@. T!e orders dated Marc! 3-, 322) and A'%'st 3+
7sic8, 322) o$ t!e Re%iona& Tria& Co'rt, 6ranc! 30;, M'ntin&'pa Cit#, in LRC Case No. **1232 are SET
ASI@E. F'rt!er, t!e p'.&ic respondent 5'd%e is ordered to contin'e "it! t!e proceedin%s and to decide t!e
case "it! dispatc!.)0
T!e appe&&ate co'rt $o'nd p'.&ic respondent RTC C'd%e to !ave %rave&# a.'sed !is discretion a,o'ntin%
to &ac: or e9cess o$ 5'risdiction in s'spendin% t!e proceedin%s in LRC Case No. **1232 re&atin% to t!e "rit
o$ possession as:ed $or .# !erein respondent PCI. T!e Co'rt o$ Appea&s did not $avor t!e RTC C'd%e
"!o, ?in e$$ect too: co%niJance o$ t!e proceedin%s in Civi& Case No. **13(4, an action $or ann'&,ent o$
$orec&os're proceedin%s $i&ed .#?); !erein petitioner CGP 1 one t!at is entire&# separate $ro, t!e case
ear&ier $i&ed. Moreover, ?E"Fit! t!e dis,issa& o$ t!e ,ain case, 7an8 in5'nction 7iss'ed t!erein8 is
a'to,atica&&# &i$ted and t!e disso&'tion t!ereo$ is not appea&a.&e.? T!e Co'rt o$ Appea&s t!en c&ari$ied t!at
t!o'%! t!e precedin% princip&e is t!e %enera& r'&e, t!e circ',stances s'rro'ndin% t!e reinstate,ent o$ t!e
s'.5ect "rit o$ pre&i,inar# in5'nction do not necessari&# entit&e t!e app&ication o$ t!e e9ception stated in
Section 4, R'&e (* o$ t!e )**- Revised R'&es o$ Civi& Proced're, "!ic! states
SEC. 4. C'd%,ents not sta#ed .# appea&. 1 C'd%,ents in actions $or in5'nction, receivers!ip, acco'ntin%
and s'pport, and s'c! ot!er 5'd%,ents as are no" or ,a# !erea$ter .e dec&ared to .e i,,ediate&#
e9ec'tor#, s!a&& .e en$orcea.&e a$ter t!eir rendition and s!a&& not .e sta#ed .# an appea& ta:en t!ere$ro,,
'n&ess ot!er"ise ordered .# t!e tria& co'rt. On appea& t!ere$ro,, t!e appe&&ate co'rt in its discretion ,a#
,a:e an order s'spendin%, ,odi$#in%, restorin% or %rantin% t!e in5'nction, receivers!ip, acco'ntin%, or
a"ard o$ s'pport.
T!e sta# o$ e9ec'tion s!a&& .e 'pon s'c! ter,s as to .ond or ot!er"ise as ,a# .e considered proper $or
t!e sec'rit# or protection o$ t!e ri%!ts o$ t!e adverse part#.
It &i:e"ise noted t!at t!e $act t!at t!ere "as no disp'te vis 1 X 1vis !erein petitioner CGPQs $ai&'re to
redee, t!e $orec&osed rea& properties "it!in t!e period, !erein respondent PCIQs ri%!t to possession
t!ereo$ is <'ite patent and a.so&'teD and t!at ?an# <'estion re%ardin% t!e va&idit# o$ t!e ,ort%a%e or its
$orec&os're cannot .e a &e%a& %ro'nd $or re$'sin% t!e iss'ance o$ a "rit o$ possession 999.?)-
On )( C'&# 3224, t!e Co'rt o$ Appea&s denied t!e ,otion $or reconsideration $i&ed .# !erein petitioner
CGP.
Hence, t!is Petition $or Revie" on Certiorari $i&ed 'nder R'&e 40 o$ t!e )**- Revised R'&es o$ Civi&
Proced're. Petitioner CGP does not <'estion at a&& t!e s'.stantive aspect o$ t!e decision o$ t!e Co'rt o$
Appea&s. ItQs petition is predicated so&e&# on t!e iss'e o$ ?"!et!er or not t!e Honora.&e Co'rt o$ Appea&s
%rave&# erred in %ivin% d'e co'rse to t!e petition $or certiorari o$ respondent, t!ere .ein% a&read# a $ina&
$indin% .# t!is Honora.&e Co'rt in its Reso&'tion dated @ece,.er (, 322), in G.R. No. )024+(, t!at t!e
said petition raised <'estions o$ $acts and t!ere$ore not proper $or petition $or certiorari .?)+
In its one pa%e ar%',ent, Petitioner CGP contends, in "!o&e, t!at
It is 'ndisp'ted t!at t!is Honora.&e Co'rt in its reso&'tion dated @ece,.er (, 322) in G.R. No. )024+(
!as $o'nd t!at iss'es o$ $acts are raised in t!e petition $i&ed t!erein. T!at t!ese conc&'sion and $indin% o$
t!is Honora.&e Co'rt are $ina& and t!ere$ore no co'rt $or t!at ,atter, inc&'din% t!e Co'rt o$ Appea&s, can
dist'r. t!e sa,e. EIn $act and in tr't!, t!e $act'a& iss'es are pendin% $or reso&'tion in t!e case .e$ore t!e
Co'rt o$ Appea&s, in t!e case entit&ed CGP TRANSPORTATION AN@ SERIICES CORPORATION,
P&ainti$$1appe&&ant v. PCI LEASING AN@ FINANCE CORPORATION, de$endant1appe&&ee doc:eted as
C.A. G.R. No. ;*4;;.F =it! t!is $act'a& .ac:drop, petitioner !onest&# .e&ieves, t!at t!ere can .e no ot!er
$ate on t!e said petition Eo$ respondentF .'t t!e dis,issa&, it .ein% a sett&ed 5'rispr'dence t!at in a Petition
$or Revie", on&# <'estions o$ &a" can .e raised. Even t!e Honora.&e Co'rt o$ Appea&s a%ree on t!is point
"!en it sa#s in its a$ore<'oted decision, citin% t!e doctrine &aid do"n .# t!is Honora.&e Co'rt in 6CI
E,p&o#ees M =or:ers Union v. Marcos, (* SCRA )-+, t!at ?It is !o"ever .asic t!at "!en $acts are
disp'ted, certiorari is not an appropriate re,ed#?.)*
Respondent PCI, in contrast, ,aintains t!at in renderin% its assai&ed @ecision, t!e ?Q Honora.&e Co'rt o$
Appea&s si,p&# disc!ar%ed t!e d't# assi%ned to it .# t!is Honora.&e Co'rt,? apropos t!e &atterQs (
@ece,.er 322) Reso&'tion.
=e s'stain respondent PCIQs i,port'nin%s and dis,iss petitioner CGPQs petition.
A&t!o'%! t!e $or, or ,ode o$ t!e ori%ina& petition $i&ed .# !erein respondent PCI $ro, t!e Order o$ t!e
RTC "as a specia& civi& action $or certiorari, an incorrect ,ode o$ appea& t!ere .ein% <'estions o$ $act as
assi%ned errors, i.e., t!e e9istence and re&evanc# o$ speci$ic s'rro'ndin% circ',stance, t!eir re&ation to
eac! ot!er and to t!e "!o&e sit'ation,32 t!is Co'rt, in order to serve t!e de,ands o$ s'.stantia& 5'stice,
considers and disposes o$ t!e case as an appea& .# certiorari instead.
In an appea& .# certiorari 'nder R'&e 40, on&# <'estions o$ &a" ,a# .e raised.3) In petitions s'c! as t!e
one $i&ed in G.R. No. )024+(, <'estions o$ $act ,a# not .e t!e proper s'.5ect o$ appea& 'nder R'&e 40 as
t!is ,ode o$ appea& is %enera&&# con$ined to <'estions o$ &a".33 =e&& entrenc!ed is t!e r'&e t!at t!is Co'rt
is not a trier o$ $acts.3( T!e reso&'tion o$ $act'a& iss'es is t!e $'nction o$ &o"er co'rts, "!ose $indin%s on
t!ese ,atters are received "it! respect and are in $act .indin% on 's s'.5ect to certain e9ceptions.34
Cases "!ere an appea& invo&ved <'estions o$ $act, o$ &a", or .ot! $a&& "it!in t!e e9c&'sive appe&&ate
5'risdiction o$ t!e Co'rt o$ Appea&s.30 T!is is attested to .# Section )0, R'&e 44 o$ t!e )**- Revised
R'&es o$ Civi& Proced're. T!e section reads
SEC. )0. A'estions t!at ,a# .e raised on appea&. 1 9 9 9 !e ,a# inc&'de in !is assi%n,ent o$ errors an#
<'estion o$ &a" or $act t!at !as .een raised in t!e co'rt .e&o" and "!ic! is "it!in t!e iss'es $ra,ed .# t!e
parties.
It "as on t!is score t!at "e re$erred t!e s'.5ect petition to t!e appe&&ate co'rt.
Under Section 07$8 o$ R'&e 0; o$ t!e )**- Revised R'&es o$ Civi& Proced're, an appea& ,a# .e dis,issed
on t!e %ro'nd o$ erroneo's c!oice or ,ode o$ appea&. Said section reads
SEC. 0. Gro'nds $or dis,issa& o$ appea&. 1 T!e appea& MAB .e dis,issed ,ot' proprio or on ,otion o$
t!e respondent on t!e $o&&o"in% %ro'nds
9 9 9
7$8 Error in t!e c!oice or ,ode o$ appea&.
T!is not"it!standin%, t!e Co'rt ,a# re$er t!e case to t!e Co'rt o$ Appea&s 'nder par. 3, Section ; o$ t!e
sa,e r'&e. Said section states
SEC. ;. @isposition o$ i,proper appea&. 1 9 9 9
An appea& .# certiorari ta:en to t!e S'pre,e Co'rt $ro, t!e Re%iona& Tria& Co'rt s'.,ittin% iss'es o$ $act
,a# .e re$erred to t!e Co'rt o$ Appea&s $or decision or appropriate action. T!e deter,ination o$ t!e
S'pre,e Co'rt on "!et!er or not iss'es o$ $act are invo&ved s!a&& .e $ina&. EE,p!asis s'pp&ied.F
T!is Co'rtQs discretion to re$er t!e case to t!e Co'rt o$ Appea&s is .# reason o$ t!e ter, ?,a#? in .ot!
sections. S'c! ter, denotes discretion on o'r part in dis,issin% an appea& or re$errin% one to t!e Co'rt o$
Appea&s.
6esides, it ,'st .e .orne in ,ind t!at proced'ra& r'&es are intended to ens're proper ad,inistration o$
&a" and 5'stice. T!e r'&es o$ proced're o'%!t not to .e app&ied in a ver# ri%id, tec!nica& sense, $or t!e# are
adopted to !e&p sec're, not override, s'.stantia& 5'stice.3; A deviation $ro, its ri%id en$orce,ent ,a# t!'s
.e a&&o"ed to attain its pri,e o.5ective, $or a$ter a&&, t!e dispensation o$ 5'stice is t!e core reason $or t!e
e9istence o$ t!e co'rts.
In t!e case at .ar, s'.stantia& ends o$ 5'stice "arranted t!e re$erra& o$ t!e case to t!e appe&&ate co'rt $or
$'rt!er appropriate proceedin%s.
=HEREFORE, pre,ises considered, t!e instant petition is !ere.# @ENIE@. T!e assai&ed 3; Marc! 3224
@ecision and )( C'&# 3224 Reso&'tion, .ot! o$ t!e Co'rt o$ Appea&s, in CA G.R. SP No. ;+03+ entit&ed
?PCI Leasin% and Finances, Inc. v. Hon. A&.erto L. Ler,a, In His Capacit# as Presidin% C'd%e o$ 6ranc!
30; o$ t!e Re%iona& Tria& Co'rt o$ M'ntin&'pa Cit# and CGP Transportation and Services Corporation,? are
AFFIRME@.
G.R. No. );*330 Nove,.er )-, 32)2
COMMISSIONER OF INTERNAL REIENUE, Petitioner, v. HAM6RECHT M AUIST PHILIPPINES, INC.,
Respondent.
In a &etter dated Fe.r'ar# )0, )**(, respondent in$or,ed t!e 6'rea' o$ Interna& Reven'e 76IR8, t!ro'%!
its =est1Ma:ati @istrict O$$ice o$ its c!an%e o$ .'siness address $ro, t!e 3nd F&oor Corint!ian P&aJa,
Paseo de Ro9as, Ma:ati Cit# to t!e 33nd F&oor PCI6 To"er II, Ma:ati Aven'e corner H.I. @e &a Costa
Streets, Ma:ati Cit#. Said &etter "as d'&# received .# t!e 6IR1=est Ma:ati on Fe.r'ar# )+, )**(.
On Nove,.er 4, )**(, respondent received a tracer &etter or $o&&o"1'p &etter dated Octo.er )), )**(
iss'ed .# t!e Acco'nts Receiva.&eO6i&&in% @ivision o$ t!e 6IR/s Nationa& O$$ice and si%ned .# t!en
Assistant C!ie$ Mr. Man'e& 6. Mina, de,andin% $or pa#,ent o$ a&&e%ed de$icienc# inco,e and e9panded
"it!!o&din% ta9es $or t!e ta9a.&e #ear )*+* a,o'ntin% to P3,*(;,0;2.+-.
On @ece,.er (, )**(, respondent, t!ro'%! its e9terna& a'ditors, $i&ed "it! t!e sa,e Acco'nts
Receiva.&eO6i&&in% @ivision o$ t!e 6IR/s Nationa& O$$ice, its protest &etter a%ainst t!e a&&e%ed de$icienc# ta9
assess,ents $or )*+* as indicated in t!e said tracer &etter dated Octo.er )), )**(.
T!e a&&e%ed de$icienc# inco,e ta9 assess,ent apparent&# res'&ted $ro, an ad5'st,ent ,ade to
respondent/s ta9a.&e inco,e $or t!e #ear )*+*, on acco'nt o$ t!e disa&&o"ance o$ certain ite,s o$
e9pense, na,e&#, pro$essiona& $ees paid, donations, repairs and ,aintenance, sa&aries and "a%es, and
,ana%e,ent $ees. T!e &atter ite, o$ e9pense, t!e ,ana%e,ent $ees, ,ade 'p t!e .'&: o$ t!e
disa&&o"ance, t!e e9a,iner a&&e%in%, a,on% ot!ers, t!at petitioner $ai&ed to "it!!o&d t!e appropriate ta9
t!ereon. T!is is a&so t!e sa,e .asis $or t!e i,position o$ t!e de$icienc# "it!!o&din% ta9 assess,ent on t!e
,ana%e,ent $ees. Reven'e Re%'&ations No. ;1+0 7E=T Re%'&ations8 does not i,pose or prescri.e E=T
on ,ana%e,ent $ees paid to a non1resident.
On Nove,.er -, 322), near&# ei%!t 7+8 #ears &ater, respondent/s e9terna& a'ditors received a &etter $ro,
!erein petitioner Co,,issioner o$ Interna& Reven'e dated Octo.er 3-, 322). T!e &etter advised t!e
respondent t!at petitioner !ad rendered a $ina& decision den#in% its protest on t!e %ro'nd t!at t!e protest
a%ainst t!e disp'ted ta9 assess,ent "as a&&e%ed&# $i&ed .e#ond t!e (21da# re%&e,entar# period
prescri.ed in t!en Section 33* o$ t!e Nationa& Interna& Reven'e Code.
On @ece,.er ;, 322), respondent $i&ed a Petition $or Revie" doc:eted as CTA Case No. ;(;3 .e$ore t!e
t!en Co'rt o$ Ta9 Appea&s, p'rs'ant to Section - o$ Rep'.&ic Act No. ))30, ot!er"ise :no"n as an hAct
Creatin% t!e Co'rt o$ Ta9 Appea&s/ and Section 33+ o$ t!e NIRC, to appea& t!e $ina& decision o$ t!e
Co,,issioner o$ Interna& Reven'e den#in% its protest a%ainst t!e de$icienc# inco,e and "it!!o&din% ta9
assess,ents iss'ed $or ta9a.&e #ear )*+*.E(Fcra&a"
In a @ecision dated Septe,.er 34, 3224, t!e CTA Ori%ina& @ivision !e&d t!at t!e s'.5ect assess,ent
notice sent .# re%istered ,ai& on Can'ar# +, )**( to respondent/s $or,er p&ace o$ .'siness "as va&id and
.indin% since respondent on&# %ave $or,a& notice o$ its c!an%e o$ address on Fe.r'ar# )+, )**(. T!'s,
t!e assess,ent !ad .eco,e $ina& and 'nappea&a.&e $or $ai&'re o$ respondent to $i&e a protest "it!in t!e
(21da# period provided .# &a". Ho"ever, t!e CTA 7a8 !e&d t!at t!e CIR $ai&ed to co&&ect t!e assessed
ta9es "it!in t!e prescriptive periodD and 7.8 directed t!e cance&&ation and "it!dra"a& o$ Assess,ent
Notice No. 22)04(1+*10;;+. Petitioner/s Motion $or Reconsideration and S'pp&e,enta& Motion $or
Reconsideration o$ said @ecision $i&ed on Octo.er )4, 3224 and Nove,.er 33, 3224, respective&#, "ere
denied $or &ac: o$ ,erit.
Unda'nted, t!e CIR $i&ed a Petition $or Revie" "it! t!e CTA En 6anc .'t t!is "as denied in a @ecision
dated A'%'st )3, 3220, t!e dispositive portion readsc!anro.&esvirt'a&&a"&i.rar#
=HEREFORE, t!e Petition $or Revie" is @ENIE@ @UE COURSE and t!e case is accordin%&#
@ISMISSE@ $or &ac: o$ ,erit.E4Fcra&a"
Hence, t!e instant Petition "!erein t!e $o&&o"in% iss'es are raisedc!anro.&esvirt'a&&a"&i.rar#
I
=HETHER OR NOT THE COURT OF TAH APPEALS HAS CURIS@ICTION TO RULE THAT THE
GOIERNMENT/S RIGHT TO COLLECT THE TAH HAS PRESCRI6E@.
II
=HETHER OR NOT THE PERIO@ TO COLLECT THE ASSESSMENT HAS PRESCRI6E@.E0Fcra&a"
T!e petition is "it!o't ,erit.
Anent t!e $irst iss'e, petitioner ar%'es t!at t!e CTA !ad no 5'risdiction over t!e case since t!e CTA itse&$
!ad r'&ed t!at t!e assess,ent !ad .eco,e $ina& and 'nappea&a.&e. Citin% Protector/s Services, Inc. v.
Co'rt o$ Appea&s,E;F t!e CIR ar%'ed t!at, a$ter t!e &apse o$ t!e (21da# period to protest, respondent ,a#
no &on%er disp'te t!e correctness o$ t!e assess,ent and its appea& to t!e CTA s!o'&d .e dis,issed. T!e
CIR too: iss'e "it! t!e CTA/s prono'nce,ent t!at it !ad 5'risdiction to decide qot!er ,attersr re&ated to
t!e ta9 assess,ent s'c! as t!e iss'e on t!e ri%!t to co&&ect t!e sa,e since t!e CIR ,aintains t!at "!en
t!e &a" sa#s t!at t!e CTA !as 5'risdiction over qot!er ,atters,r it pres'pposes t!at t!e ta9 assess,ent
!as not .eco,e $ina& and 'nappea&a.&e.
=e cannot co'ntenance t!e CIR/s assertion "it! re%ard to t!is point. T!e 5'risdiction o$ t!e CTA is
%overned .# Section - o$ Rep'.&ic Act No. ))30, as a,ended, and t!e ter, qot!er ,attersr re$erred to .#
t!e CIR in its ar%',ent can .e $o'nd in n',.er 7)8 o$ t!e a$ore,entioned provision, to
"itc!anro.&esvirt'a&&a"&i.rar#
Section -. C'risdiction. 1 T!e Co'rt o$ Ta9 Appea&s s!a&& e9ercise e9c&'sive appe&&ate 5'risdiction to revie"
.# appea&, as !erein provided G
). @ecisions o$ t!e Co,,issioner o$ Interna& Reven'e in cases invo&vin% disp'ted assess,ents, re$'nds
o$ interna& reven'e ta9es, $ees or ot!er c!ar%es, pena&ties i,posed in re&ation t!ereto, or ot!er ,atters
arisin% 'nder t!e Nationa& Interna& Reven'e Code or ot!er &a" as part o$ &a" ad,inistered .# t!e 6'rea'
o$ Interna& Reven'e. 7E,p!asis s'pp&ied.8
P&ain&#, t!e assai&ed CTA En 6anc @ecision "as correct in dec&arin% t!at t!ere "as not!in% in t!e
$ore%oin% provision 'pon "!ic! petitioner/s t!eor# "it! re%ard to t!e para,eters o$ t!e ter, qot!er
,attersr can .e s'pported or even ded'ced. =!at is rat!er c&ear&# apparent, !o"ever, is t!at t!e ter,
qot!er ,attersr is &i,ited on&# .# t!e <'a&i$#in% p!rase t!at $o&&o"s it.
T!'s, on t!e stren%t! o$ s'c! o.servation, "e !ave previo's&# r'&ed t!at t!e appe&&ate 5'risdiction o$ t!e
CTA is not &i,ited to cases "!ic! invo&ve decisions o$ t!e CIR on ,atters re&atin% to assess,ents or
re$'nds. T!e second part o$ t!e provision covers ot!er cases t!at arise o't o$ t!e Nationa& Interna&
Reven'e Code 7NIRC8 or re&ated &a"s ad,inistered .# t!e 6'rea' o$ Interna& Reven'e 76IR8.craE-Fcra&a"
In t!e case at .ar, t!e iss'e at !and is "!et!er or not t!e 6IR/s ri%!t to co&&ect ta9es !ad a&read#
prescri.ed and t!at is a s'.5ect ,atter $a&&in% 'nder Section 33(7c8 o$ t!e )*+; NIRC, t!e &a" app&ica.&e
at t!e ti,e t!e disp'ted assess,ent "as ,ade. To <'ote Section 33(7c8c!anro.&esvirt'a&&a"&i.rar#
An# interna& reven'e ta9 "!ic! !as .een assessed "it!in t!e period o$ &i,itation a.ove1prescri.ed ,a# .e
co&&ected .# distraint or &ev# or .# a proceedin% in co'rt "it!in t!ree #ears $o&&o"in% t!e assess,ent o$ t!e
ta9. 7E,p!ases s'pp&ied.8
In connection t!ere"it!, Section ( o$ t!e )*+; NIRC states t!at t!e co&&ection o$ ta9es is one o$ t!e d'ties
o$ t!e 6IR, to "itc!anro.&esvirt'a&&a"&i.rar#
Sec. (. Po"ers and d'ties o$ 6'rea'. 1 T!e po"ers and d'ties o$ t!e 6'rea' o$ Interna& Reven'e s!a&&
co,pre!end t!e assess,ent and co&&ection o$ a&& nationa& interna& reven'e ta9es, $ees, and c!ar%es and
t!e en$orce,ent o$ a&& $or$eit'res, pena&ties, and $ines connected t!ere"it! inc&'din% t!e e9ec'tion o$
5'd%,ents in a&& cases decided in its $avor .# t!e Co'rt o$ Ta9 Appea&s and t!e ordinar# co'rts. Said
6'rea' s!a&& a&so %ive e$$ect to and ad,inister t!e s'pervisor# and po&ice po"er con$erred to it .# t!is
Code or ot!er &a"s. 7E,p!asis s'pp&ied.8
T!'s, $ro, t!e $ore%oin%, t!e iss'e o$ prescription o$ t!e 6IR/s ri%!t to co&&ect ta9es ,a# .e considered as
covered .# t!e ter, qot!er ,attersr over "!ic! t!e CTA !as appe&&ate 5'risdiction.
F'rt!er,ore, t!e p!raseo&o%# o$ Section -, n',.er 7)8, denotes an intent to vie" t!e CTA/s 5'risdiction
over disp'ted assess,ents and over qot!er ,attersr arisin% 'nder t!e NIRC or ot!er &a"s ad,inistered .#
t!e 6IR as separate and independent o$ eac! ot!er. T!is r'ns co'nter to petitioner/s t!eor# t!at t!e &atter
is <'a&i$ied .# t!e stat's o$ t!e $or,er, i.e., an qot!er ,atterr ,'st not .e a $ina& and 'nappea&a.&e ta9
assess,ent or, a&ternative&#, ,'st .e a disp'ted assess,ent.
Li:e"ise, t!e $irst para%rap! o$ Section )) o$ Rep'.&ic Act No. ))30,
as a,ended .# Rep'.&ic Act No. *3+3,E+F .e&ies petitioner/s assertion as t!e provision is e9p&icit t!at, $or
as &on% as a part# is adverse&# a$$ected .# an# decision, r'&in% or inaction o$ Petitioner, said part# ,a# $i&e
an appea& "it! t!e CTA "it!in (2 da#s $ro, receipt o$ s'c! decision or r'&in%. T!e "ordin% o$ t!e
provision does not ta:e into acco'nt t!e CIR/s restrictive interpretation as it c&ear&# provides t!at t!e ,ere
e9istence o$ an adverse decision, r'&in% or inaction a&on% "it! t!e ti,e&# $i&in% o$ an appea& operates to
va&idate t!e e9ercise o$ 5'risdiction .# t!e CTA.
To .e s're, t!e $act t!at an assess,ent !as .eco,e $ina& $or $ai&'re o$ t!e ta9pa#er to $i&e a protest "it!in
t!e ti,e a&&o"ed on&# ,eans t!at t!e va&idit# or correctness o$ t!e assess,ent ,a# no &on%er .e
<'estioned on appea&. Ho"ever, t!e va&idit# o$ t!e assess,ent itse&$ is a separate and distinct iss'e $ro,
t!e iss'e o$ "!et!er t!e ri%!t o$ t!e CIR to co&&ect t!e va&id&# assessed ta9 !as prescri.ed. T!is iss'e o$
prescription, .ein% a ,atter provided $or .# t!e NIRC, is "e&& "it!in t!e 5'risdiction o$ t!e CTA to decide.
=it! respect to t!e second iss'e, t!e CIR insists t!at its ri%!t to co&&ect t!e ta9 de$icienc# it assessed on
respondent is not .arred .# prescription since t!e prescriptive period t!ereo$ "as a&&e%ed&# s'spended .#
respondent/s re<'est $or reinvesti%ation.
6ased on t!e $acts o$ t!is case, "e $ind t!at t!e CIR/s contention is "it!o't .asis. T!e pertinent provision
o$ t!e )*+; NIRC is Section 334, to "itc!anro.&esvirt'a&&a"&i.rar#
Section 334. S'spension o$ r'nnin% o$ stat'te. G T!e r'nnin% o$ t!e stat'te o$ &i,itations provided in
Sections 32( and 33( on t!e ,a:in% o$ assess,ent and t!e .e%innin% o$ distraint or &ev# or a proceedin%
in co'rt $or co&&ection, in respect o$ an# de$icienc#, s!a&& .e s'spended $or t!e period d'rin% "!ic! t!e
Co,,issioner is pro!i.ited $ro, ,a:in% t!e assess,ent or .e%innin% distraint or &ev# or a proceedin% in
co'rt and $or si9t# da#s t!erea$terD "!en t!e ta9pa#er re<'ests $or a re1investi%ation "!ic! is %ranted .#
t!e Co,,issionerD "!en t!e ta9pa#er cannot .e &ocated in t!e address %iven .# !i, in t!e ret'rn $i&ed
'pon "!ic! a ta9 is .ein% assessed or co&&ected Provided, T!at, i$ t!e ta9pa#er in$or,s t!e Co,,issioner
o$ an# c!an%e in address, t!e stat'te "i&& not .e s'spendedD "!en t!e "arrant o$ distraint and &ev# is d'&#
served 'pon t!e ta9pa#er, !is a't!oriJed representative, or a ,e,.er o$ !is !o'se!o&d "it! s'$$icient
discretion, and no propert# co'&d .e &ocatedD and "!en t!e ta9pa#er is o't o$ t!e P!i&ippines. 7E,p!asis
s'pp&ied.8
T!e p&ain and 'na,.i%'o's "ordin% o$ t!e said provision dictates t!at t"o re<'isites ,'st conc'r .e$ore
t!e period to en$orce co&&ection ,a# .e s'spended 7a8 t!at t!e ta9pa#er re<'ests $or reinvesti%ation, and
7.8 t!at petitioner %rants s'c! re<'est.
On t!is point, "e !ave previo's&# !e&d t!atc!anro.&esvirt'a&&a"&i.rar#
T!e a.ove section is p&ain&# "orded. In order to s'spend t!e r'nnin% o$ t!e prescriptive periods $or
assess,ent and co&&ection, t!e re<'est $or reinvesti%ation ,'st .e %ranted .# t!e CIR.E*F 7E,p!asis
s'pp&ied.8
Conse<'ent&#, t!e ,ere $i&in% o$ a protest &etter "!ic! is not %ranted does not operate to s'spend t!e
r'nnin% o$ t!e period to co&&ect ta9es. In t!e case at .ar, t!e records s!o" t!at respondent $i&ed a re<'est
$or reinvesti%ation on @ece,.er (, )**(, !o"ever, t!ere is no indication t!at petitioner acted 'pon
respondent/s protest. As t!e CTA Ori%ina& @ivision in C.T.A. Case No. ;(;3 s'ccinct&# pointed o't in its
@ecision, to "itc!anro.&esvirt'a&&a"&i.rar#
It is evident t!at t!e respondent did not cond'ct a reinvesti%ation, t!e protest !avin% .een dis,issed on
t!e %ro'nd t!at t!e assess,ent !as .eco,e $ina& and e9ec'tor#. T!ere is not!in% in t!e record t!at "o'&d
s!o" "!at action "as ta:en in connection "it! t!e protest o$ t!e petitioner. In $act, petitioner did not !ear
an#t!in% $ro, t!e respondent nor received an# co,,'nication $ro, t!e respondent re&ative to its protest,
not 'nti& ei%!t #ears &ater "!en t!e $ina& decision o$ t!e Co,,issioner "as iss'ed 7TSN, Marc! -, 3223, p.
348.craIn ot!er "ords, t!e re<'est $or reinvesti%ation "as not %ranted. 9 9 9.E)2F 7E,p!asis s'pp&ied.8
Since t!e CIR $ai&ed to disprove t!e a$ore,entioned $indin%s o$ $act o$ t!e CTA "!ic! are .orne .#
s'.stantia& evidence on record, t!is Co'rt is constrained to 'p!o&d t!e, as .indin% and tr'e. T!is is in
consonance "it! o'r o$t1cited r'&in% t!at instr'cts t!is Co'rt to not &i%!t&# set aside t!e conc&'sions
reac!ed .# t!e CTA, "!ic!, .# t!e ver# nat're o$ its $'nctions, is dedicated e9c&'sive&# to t!e reso&'tion o$
ta9 pro.&e,s and !as accordin%&# deve&oped an e9pertise on t!e s'.5ect 'n&ess t!ere !as .een an a.'se
or i,provident e9ercise o$ a't!orit#.E))Fcra&a"
Indeed, it is contradictor# $or t!e CIR to ar%'e t!at respondent/s @ece,.er (, )**( protest "!ic!
contained a re<'est $or reinvesti%ation "as $i&ed .e#ond t!e re%&e,entar# period .'t sti&& c&ai, t!at t!e
sa,e re<'est $or reinvesti%ation "as i,p&icit&# %ranted .# virt'e o$ its Octo.er 3-, 322) &etter. =e $ind no
co%ent reason to reverse t!e CTA "!en it r'&ed t!at t!e prescriptive period $or t!e CIR/s ri%!t to co&&ect
"as not s'spended 'nder t!e circ',stances o$ t!is case.
=HEREFORE, t!e petition is @ENIE@. T!e assai&ed @ecision o$ t!e Co'rt o$ Ta9 Appea&s 7CTA8 En 6anc
dated A'%'st )3, 3220 is AFFIRME@. No costs.
THE CITB OF MANILA, REPRESENTE@ 6B MABOR COSE L. ATIENcA, CR., AN@ MS. LI6ERTB M.
TOLE@O, IN HER CAPACITB AS THE CITB TREASURER OF MANILA, Petitioners, v. HON. CARI@A@
H. GRECIAGCUER@O, IN HER CAPACITB AS PRESI@ING CU@GE OF THE REGIONAL TRIAL COURT,
6RANCH ))3, PASAB CITBD SM MART, INC.D SM PRIME HOL@INGS, INC.D STAR APPLIANCES
CENTERD SUPERIALUE, INC.D ACE HAR@=ARE PHILIPPINES, INC.D =ATSON PERSONAL CARE
STORES, PHILS., INC.D COLLIMART PHILS., CORP.D SURPLUS MARNETING CORPORATION AN@
SIGNATURE LINES, Respondents.
T!e record s!o"s t!at petitioner Cit# o$ Mani&a, t!ro'%! its treas'rer, petitioner Li.ert# To&edo, assessed
ta9es $or t!e ta9a.&e period $ro, Can'ar# to @ece,.er 3223 a%ainst private respondents SM Mart, Inc.,
SM Pri,e Ho&din%s, Inc., Star App&iances Center, S'perva&'e, Inc., Ace Hard"are P!i&ippines, Inc.,
=atsons Persona& Care Stores P!i&s., Inc., Co&&i,art P!i&ippines Corp., S'rp&'s Mar:etin% Corp. and
Si%nat're Lines. In addition to t!e ta9es p'rported&# d'e $ro, private respondents p'rs'ant to Section )4,
)0, );, )- o$ t!e Revised Reven'e Code o$ Mani&a 7RRCM8, said assess,ent covered t!e &oca& .'siness
ta9es petitioners "ere a't!oriJed to co&&ect 'nder Section 3) o$ t!e sa,e Code. 6eca'se pa#,ent o$ t!e
ta9es assessed "as a precondition $or t!e iss'ance o$ t!eir .'siness per,its, private respondents "ere
constrained to pa# t!e P )*,();,40+.-- assess,ent 'nder protest.
On Can'ar# 34, 3224, private respondents $i&ed E"it! t!e Re%iona& Tria& Co'rt o$ Pasa# Cit#F t!e co,p&aint
deno,inated as one $or qRe$'nd or Recover# o$ I&&e%a&&# andOor Erroneo's&#GCo&&ected Loca& 6'siness
Ta9, Pro!i.ition "it! Pra#er to Iss'e TRO and =rit o$ Pre&i,inar# In5'nctionr "!ic! "as doc:eted as Civi&
Case No. 24G22)*GCFM .e$ore p'.&ic respondent/s sa&a Eat 6ranc! ))3F. In t!e a,ended co,p&aint t!e#
$i&ed on Fe.r'ar# );, 3224, private respondents a&&e%ed t!at, in re&ation to Section 3) t!ereo$, Sections )4,
)0, );, )-, )+, )* and 32 o$ t!e RRCM "ere vio&ative o$ t!e &i,itations and %'ide&ines 'nder Section )4(
7!8 o$ Rep'.&ic Act. No. -);2 ELoca& Govern,ent CodeF on do'.&e ta9ation. T!e# $'rt!er averred t!at
petitioner cit#/s Ordinance No. +2)) "!ic! a,ended pertinent portions o$ t!e RRCM !ad a&read# .een
dec&ared to .e i&&e%a& and 'nconstit'tiona& .# t!e @epart,ent o$ C'stice.3C!anRo.&esIirt'a&a"&i.rar#
In its Order( dated C'&# *, 3224, t!e RTC %ranted private respondents/ app&ication $or a "rit o$ pre&i,inar#
in5'nction.
Petitioners $i&ed a Motion $or Reconsideration4 .'t t!e RTC denied it in its Order0 dated Octo.er )0, 3224.
Petitioners t!en $i&ed a specia& civi& action $or certiorari "it! t!e CA assai&in% t!e C'&# *, 3224 and Octo.er
)0, 3224 Orders o$ t!e RTC.;
In its Reso&'tion pro,'&%ated on Apri& ;, 322;, t!e CA dis,issed petitioners/ petition $or certiorari !o&din%
t!at it !as no 5'risdiction over t!e said petition. T!e CA r'&ed t!at since appe&&ate 5'risdiction over private
respondents/ co,p&aint $or ta9 re$'nd, "!ic! "as $i&ed "it! t!e RTC, is vested in t!e Co'rt o$ Ta9 Appea&s
7CTA8, p'rs'ant to its e9panded 5'risdiction 'nder Rep'.&ic Act No. *3+3 7RA *3+38, it $o&&o"s t!at a
petition $or certiorari see:in% n'&&i$ication o$ an inter&oc'tor# order iss'ed in t!e said case s!o'&d, &i:e"ise,
.e $i&ed "it! t!e CTA.
Petitioners $i&ed a Motion $or Reconsideration,- .'t t!e CA denied it in its Reso&'tion dated Nove,.er 3*,
322;.
Hence, t!e present petition raisin% t!e $o&&o"in% iss'esc!anRo.&esvirt'a&La"&i.rar#
IG =!et!er or not t!e Honora.&e Co'rt o$ Appea&s %rave&# erred in dis,issin% t!e case $or &ac: o$
5'risdiction.
IIG =!et!er or not t!e Honora.&e Re%iona& Tria& Co'rt %rave&# a.'seEdF its discretion a,o'ntin% to &ac: or
e9cess o$ 5'risdiction in en5oinin% .# iss'in% a =rit o$ In5'nction t!e petitionersE,F t!eir a%ents andOor
a't!oriJed representatives $ro, i,p&e,entin% Section 3) o$ t!e Revised Reven'e Code o$ Mani&a, as
a,ended, a%ainst private respondents.
IIIG =!et!er or not t!e Honora.&e Re%iona& Tria& Co'rt %rave&# a.'seEdF its discretion a,o'ntin% to &ac: or
e9cess o$ 5'risdiction in iss'in% t!e =rit o$ In5'nction despite $ai&'re o$ private respondents to ,a:e a
"ritten c&ai, $or ta9 credit or re$'nd "it! t!e Cit# Treas'rer o$ Mani&a.
IIG =!et!er or not t!e Honora.&e Re%iona& Tria& Co'rt %rave&# a.'seEdF its discretion a,o'ntin% to &ac: or
e9cess o$ 5'risdiction considerin% t!at 'nder Section 3) o$ t!e Mani&a Reven'e Code, as a,ended, t!e#
are ,ere co&&ectin% a%ents o$ t!e Cit# Govern,ent.
IG =!et!er or not t!e Honora.&e Re%iona& Tria& Co'rt %rave&# a.'seEdF its discretion a,o'ntin% to &ac: or
e9cess o$ 5'risdiction in iss'in% t!e =rit o$ In5'nction .eca'se petitioner Cit# o$ Mani&a and its constit'ents
"o'&d res'&t to %reater da,a%e and pre5'dice t!ereo$. 7sic8+C!anRo.&esIirt'a&a"&i.rar#
=it!o't $irst reso&vin% t!e a.ove iss'es, t!is Co'rt $inds t!at t!e instant petition s!o'&d .e denied $or .ein%
,oot and acade,ic.
U pon per'sa& o$ t!e ori%ina& records o$ t!e instant case, t!is Co'rt discovered t!at a @ecision* in t!e
,ain case !ad a&read# .een rendered .# t!e RTC on A'%'st )(, 322-, t!e dispositive portion o$ "!ic!
reads as $o&&o"sc!anRo.&esvirt'a&La"&i.rar#
=HEREFORE, in vie" o$ t!e $ore%oin%, t!is Co'rt !ere.# renders CU@GMENT in $avor o$ t!e p&ainti$$ and
a%ainst t!e de$endant to %rant a ta9 re$'nd or credit $or ta9es paid p'rs'ant to Section 3) o$ t!e Reven'e
Code o$ t!e Cit# o$ Mani&a as a,ended $or t!e #ear 3223 in t!e $o&&o"in%
a,o'ntsc!anRo.&esvirt'a&La"&i.rar#
To p&ainti$$ SM Mart, Inc.
G
P )),4;3,030.23

To p&ainti$$ SM Pri,e Ho&din%s, Inc.
G
(,))+,)24.;(

To p&ainti$$ Star App&iances Center
G
3,)03,();.04

To p&ainti$$ S'perva&'e, Inc.
G
),(;3,-02.(4

To p&ainti$$ Ace Hard"are P!i&s., Inc.
G
4)*,;+*.24

To p&ainti$$ =atsons Persona& Care Hea&t! Stores P!i&s., Inc.
G
3(),40(.;3

To p&ainti$$ Co&&i,art P!i&s., Corp.
G
)42,*2+.04

To p&ainti$$ S'rp&'s Mar:etin% Corp.
G
332,324.-2

To p&ainti$$ Si%nat're M:t%. Corp.
G
*4,*2;.(4


TOTAL
P )*,();,40+.--

@e$endants are $'rt!er en5oined $ro, co&&ectin% ta9es 'nder Section 3), Reven'e Code o$ Mani&a $ro,
!erein p&ainti$$.
SO OR@ERE@.)2C!anRo.&esIirt'a&a"&i.rar#
T!e parties did not in$or, t!e Co'rt .'t .ased on t!e records, t!e a.ove @ecision !ad a&read# .eco,e
$ina& and e9ec'tor# per t!e Certi$icate o$ Fina&it#)) iss'ed .# t!e sa,e tria& co'rt on Octo.er 32, 322+. In
$act, a =rit o$ E9ec'tion)3 "as iss'ed .# t!e RTC on Nove,.er 30, 322*.
In vie" o$ t!e $ore%oin%, it c&ear&# appears t!at t!e iss'es raised in t!e present petition, "!ic! ,ere&#
invo&ve t!e incident on t!e pre&i,inar# in5'nction iss'ed .# t!e RTC, !ave a&read# .eco,e ,oot and
acade,ic considerin% t!at t!e tria& co'rt, in its decision on t!e ,erits in t!e ,ain case, !as a&read# r'&ed
in $avor o$ respondents and t!at t!e sa,e decision is no" $ina& and e9ec'tor#. =e&& entrenc!ed is t!e r'&e
t!at "!ere t!e iss'es !ave .eco,e ,oot and acade,ic, t!ere is no 5'sticia.&e controvers#, t!ere.#
renderin% t!e reso&'tion o$ t!e sa,e o$ no practica& 'se or va&'e.)(
In an# case , t!e Co'rt $inds it necessar# to reso&ve t!e iss'e on 5'risdiction raised .# petitioners o"in% to
its si%ni$icance and $or $'t're %'idance o$ .ot! .enc! and .ar. It is a sett&ed princip&e t!at co'rts "i&&
decide a <'estion ot!er"ise ,oot and acade,ic i$ it is capa.&e o$ repetition, #et evadin% revie".)4
Ho"ever, .e$ore proceedin%, to reso&ve t!e <'estion on 5'risdiction, t!e Co'rt dee,s it proper to &i:e"ise
address a proced'ra& error "!ic! petitioners co,,itted.
Petitioners avai&ed o$ t!e "ron% re,ed# "!en t!e# $i&ed t!e instant specia& civi& action $or certiorari 'nder
R'&e ;0 o$ t!e R'&es o$ Co'rt in assai&in% t!e Reso&'tions o$ t!e CA "!ic! dis,issed t!eir petition $i&ed
"it! t!e said co'rt and t!eir ,otion $or reconsideration o$ s'c! dis,issa&. T!ere is no disp'te t!at t!e
assai&ed Reso&'tions o$ t!e CA are in t!e nat're o$ a $ina& order as t!e# disposed o$ t!e petition
co,p&ete&#. It is sett&ed t!at in cases "!ere an assai&ed 5'd%,ent or order is considered $ina&, t!e re,ed#
o$ t!e a%%rieved part# is appea&. Hence, in t!e instant case, petitioner s!o'&d !ave $i&ed a petition $or
revie" on certiorari 'nder R'&e 40, "!ic! is a contin'ation o$ t!e appe&&ate process over t!e ori%ina&
case.)0
Petitioners s!o'&d .e re,inded o$ t!e e<'a&&#Gsett&ed r'&e t!at a specia& civi& action $or certiorari 'nder
R'&e ;0 is an ori%ina& or independent action .ased on %rave a.'se o$ discretion a,o'ntin% to &ac: or
e9cess o$ 5'risdiction and it "i&& &ie on&# i$ t!ere is no appea& or an# ot!er p&ain, speed#, and ade<'ate
re,ed# in t!e ordinar# co'rse o$ &a".); As s'c!, it cannot .e a s'.stit'te $or a &ost appea&.)-
Nonet!e&ess, in accordance "it! t!e &i.era& spirit pervadin% t!e R'&es o$ Co'rt and in t!e interest o$
s'.stantia& 5'stice, t!is Co'rt !as, .e$ore, treated a petition $or certiorari as a petition $or revie" on
certiorari, partic'&ar&# 7)8 i$ t!e petition $or certiorari "as $i&ed "it!in t!e re%&e,entar# period "it!in "!ic! to
$i&e a petition $or revie" on certiorariD 738 "!en errors o$ 5'd%,ent are averredD and 7(8 "!en t!ere is
s'$$icient reason to 5'sti$# t!e re&a9ation o$ t!e r'&es.)+ Considerin% t!at t!e present petition "as $i&ed
"it!in t!e )0Gda# re%&e,entar# period $or $i&in% a petition $or revie" on certiorari 'nder R'&e 40, t!at an
error o$ 5'd%,ent is averred, and .eca'se o$ t!e si%ni$icance o$ t!e iss'e on 5'risdiction, t!e Co'rt dee,s
it proper and 5'sti$ied to re&a9 t!e r'&es and, t!'s, treat t!e instant petition $or certiorari as a petition $or
revie" on certiorari.
Havin% disposed o$ t!e proced'ra& aspect, "e no" t'rn to t!e centra& iss'e in t!is case. T!e .asic
<'estion posed .e$ore t!is Co'rt is "!et!er or not t!e CTA !as 5'risdiction over a specia& civi& action $or
certiorari assai&in% an inter&oc'tor# order iss'ed .# t!e RTC in a &oca& ta9 case.
T!is Co'rt r'&es in t!e a$$ir,ative.
On C'ne );, )*04, Con%ress enacted Rep'.&ic Act No. ))30 7RA ))308 creatin% t!e CTA and %ivin% to
t!e said co'rt 5'risdiction over t!e $o&&o"in%c!anRo.&esvirt'a&La"&i.rar#
7)8 @ecisions o$ t!e Co&&ector o$ Interna& Reven'e in cases invo&vin% disp'ted assess,ents, re$'nds o$
interna& reven'e ta9es, $ees or ot!er c!ar%es, pena&ties i,posed in re&ation t!ereto, or ot!er ,atters
arisin% 'nder t!e Nationa& Interna& Reven'e Code or ot!er &a" or part o$ &a" ad,inistered .# t!e 6'rea'
o$ Interna& Reven'eD
738 @ecisions o$ t!e Co,,issioner o$ C'sto,s in cases invo&vin% &ia.i&it# $or c'sto,s d'ties, $ees or ot!er
,one# c!ar%esD seiJ're, detention or re&ease o$ propert# a$$ected $ines, $or$eit'res or ot!er pena&ties
i,posed in re&ation t!eretoD or ot!er ,atters arisin% 'nder t!e C'sto,s La" or ot!er &a" or part o$ &a"
ad,inistered .# t!e 6'rea' o$ C'sto,sD and
7(8 @ecisions o$ provincia& or Cit# 6oards o$ Assess,ent Appea&s in cases invo&vin% t!e assess,ent and
ta9ation o$ rea& propert# or ot!er ,atters arisin% 'nder t!e Assess,ent La", inc&'din% r'&es and
re%'&ations re&ative t!ereto.
On Marc! (2, 3224, t!e Le%is&at're passed into &a" Rep'.&ic Act No. *3+3 7RA *3+38 a,endin% RA ))30
.# e9pandin% t!e 5'risdiction o$ t!e CTA, en&ar%in% its ,e,.ers!ip and e&evatin% its ran: to t!e &eve& o$ a
co&&e%iate co'rt "it! specia& 5'risdiction. Pertinent portions o$ t!e a,endator# act provides
t!'sc!anRo.&esvirt'a&La"&i.rar#
Sec. -. C'risdiction. G T!e CTA s!a&& e9ercisec!anRo.&esvirt'a&La"&i.rar#
a. E9c&'sive appe&&ate 5'risdiction to revie" .# appea&, as !erein providedc!anRo.&esvirt'a&La"&i.rar#
). @ecisions o$ t!e Co,,issioner o$ Interna& Reven'e in cases invo&vin% disp'ted assess,ents, re$'nds
o$ interna& reven'e ta9es, $ees or ot!er c!ar%es, pena&ties in re&ation t!ereto, or ot!er ,atters arisin%
'nder t!e Nationa& Interna& Reven'e or ot!er &a"s ad,inistered .# t!e 6'rea' o$ Interna& Reven'eD
3. Inaction .# t!e Co,,issioner o$ Interna& Reven'e in cases invo&vin% disp'ted assess,ents, re$'nds o$
interna& reven'e ta9es, $ees or ot!er c!ar%es, pena&ties in re&ations t!ereto, or ot!er ,atters arisin% 'nder
t!e Nationa& Interna& Reven'e Code or ot!er &a"s ad,inistered .# t!e 6'rea' o$ Interna& Reven'e, "!ere
t!e Nationa& Interna& Reven'e Code provides a speci$ic period o$ action, in "!ic! case t!e inaction s!a&&
.e dee,ed a denia&D
(. @ecisions, orders or reso&'tions o$ t!e Re%iona& Tria& Co'rts in &oca& ta9 cases ori%ina&&# decided or
reso&ved .# t!e, in t!e e9ercise o$ t!eir ori%ina& or appe&&ate 5'risdictionD
4. @ecisions o$ t!e Co,,issioner o$ C'sto,s in cases invo&vin% &ia.i&it# $or c'sto,s d'ties, $ees or ot!er
,one# c!ar%es, seiJ're, detention or re&ease o$ propert# a$$ected, $ines, $or$eit'res or ot!er pena&ties in
re&ation t!ereto, or ot!er ,atters arisin% 'nder t!e C'sto,s La" or ot!er &a"s ad,inistered .# t!e 6'rea'
o$ C'sto,sD
0. @ecisions o$ t!e Centra& 6oard o$ Assess,ent Appea&s in t!e e9ercise o$ its appe&&ate 5'risdiction over
cases invo&vin% t!e assess,ent and ta9ation o$ rea& propert# ori%ina&&# decided .# t!e provincia& or cit#
.oard o$ assess,ent appea&sD
;. @ecisions o$ t!e Secretar# o$ Finance on c'sto,s cases e&evated to !i, a'to,atica&&# $or revie" $ro,
decisions o$ t!e Co,,issioner o$ C'sto,s "!ic! are adverse to t!e Govern,ent 'nder Section 3()0 o$
t!e Tari$$ and C'sto,s CodeD
-. @ecisions o$ t!e Secretar# o$ Trade and Ind'str#, in t!e case o$ nona%ric'&t'ra& prod'ct, co,,odit# or
artic&e, and t!e Secretar# o$ A%ric'&t're in t!e case o$ a%ric'&t'ra& prod'ct, co,,odit# or artic&e, invo&vin%
d',pin% and co'ntervai&in% d'ties 'nder Section (2) and (23, respective&#, o$ t!e Tari$$ and C'sto,s
Code, and sa$e%'ard ,eas'res 'nder Rep'.&ic Act No. ++22, "!ere eit!er part# ,a# appea& t!e decision
to i,pose or not to i,pose said d'ties.
.. C'risdiction over cases invo&vin% cri,ina& o$$enses as !erein providedc!anRo.&esvirt'a&La"&i.rar#
). E9c&'sive ori%ina& 5'risdiction over a&& cri,ina& o$$enses arisin% $ro, vio&ations o$ t!e Nationa& Interna&
Reven'e Code or Tari$$ and C'sto,s Code and ot!er &a"s ad,inistered .# t!e 6'rea' o$ Interna&
Reven'e or t!e 6'rea' o$ C'sto,s Provided, !o"ever, T!at o$$enses or $e&onies ,entioned in t!is
para%rap! "!ere t!e principa& a,o'nt o$ ta9es and $ees, e9c&'sive o$ c!ar%es and pena&ties, c&ai,ed is
&ess t!an One ,i&&ion pesos 7 P ),222,222.228 or "!ere t!ere is no speci$ied a,o'nt c&ai,ed s!a&& .e tried
.# t!e re%'&ar Co'rts and t!e 5'risdiction o$ t!e CTA s!a&& .e appe&&ate. An# provision o$ &a" or t!e R'&es
o$ Co'rt to t!e contrar# not"it!standin%, t!e cri,ina& action and t!e correspondin% civi& action $or t!e
recover# o$ civi& &ia.i&it# $or ta9es and pena&ties s!a&& at a&& ti,es .e si,'&taneo's&# instit'ted "it!, and
5oint&# deter,ined in t!e sa,e proceedin% .# t!e CTA, t!e $i&in% o$ t!e cri,ina& action .ein% dee,ed to
necessari&# carr# "it! it t!e $i&in% o$ t!e civi& action, and no ri%!t to reserve t!e $i&in% o$ s'c! civi& action
separate&# $ro, t!e cri,ina& action "i&& .e reco%niJed.
3. E9c&'sive appe&&ate 5'risdiction in cri,ina& o$$enses
a. Over appea&s $ro, t!e 5'd%,ents, reso&'tions or orders o$ t!e Re%iona& Tria& Co'rts in ta9 cases
ori%ina&&# decided .# t!e,, in t!eir respected territoria& 5'risdiction.
.. Over petitions $or revie" o$ t!e 5'd%,ents, reso&'tions or orders o$ t!e Re%iona& Tria& Co'rts in t!e
e9ercise o$ t!eir appe&&ate 5'risdiction over ta9 cases ori%ina&&# decided .# t!e Metropo&itan Tria& Co'rts,
M'nicipa& Tria& Co'rts and M'nicipa& Circ'it Tria& Co'rts in t!eir respective 5'risdiction.
c. C'risdiction over ta9 co&&ection cases as !erein provided
). E9c&'sive ori%ina& 5'risdiction in ta9 co&&ection cases invo&vin% $ina& and e9ec'tor# assess,ents $or
ta9es, $ees, c!ar%es and pena&ties Provides, !o"ever, t!at co&&ection cases "!ere t!e principa& a,o'nt o$
ta9es and $ees, e9c&'sive o$ c!ar%es and pena&ties, c&ai,ed is &ess t!an One ,i&&ion pesos 7 P
),222,222.228 s!a&& .e tried .# t!e proper M'nicipa& Tria& Co'rt, Metropo&itan Tria& Co'rt and Re%iona&
Tria& Co'rt.
3. E9c&'sive appe&&ate 5'risdiction in ta9 co&&ection casesc!anRo.&esvirt'a&La"&i.rar#
a. Over appea&s $ro, t!e 5'd%,ents, reso&'tions or orders o$ t!e Re%iona& Tria& Co'rts in ta9 co&&ection
cases ori%ina&&# decided .# t!e,, in t!eir respective territoria& 5'risdiction.
.. Over petitions $or revie" o$ t!e 5'd%,ents, reso&'tions or orders o$ t!e Re%iona& Tria& Co'rts in t!e
E9ercise o$ t!eir appe&&ate 5'risdiction over ta9 co&&ection cases ori%ina&&# decided .# t!e Metropo&itan Tria&
Co'rts, M'nicipa& Tria& Co'rts and M'nicipa& Circ'it Tria& Co'rts, in t!eir respective
5'risdiction.)*C!anRo.&esIirt'a&a"&i.rar#
A per'sa& o$ t!e a.ove provisions "o'&d s!o" t!at, "!i&e it is c&ear&# stated t!at t!e CTA !as e9c&'sive
appe&&ate 5'risdiction over decisions, orders or reso&'tions o$ t!e RTCs in &oca& ta9 cases ori%ina&&# decided
or reso&ved .# t!e, in t!e e9ercise o$ t!eir ori%ina& or appe&&ate 5'risdiction,t!ere is no cate%orica&
state,ent 'nder RA ))30 as "e&& as t!e a,endator# RA *3+3, "!ic! provides t!at t!e CTA !as
5'risdiction over petitions $or certiorari assai&in% inter&oc'tor# orders iss'ed .# t!e RTC in &oca& ta9 cases
$i&ed .e$ore it.
T!e prevai&in% doctrine is t!at t!e a't!orit# to iss'e "rits o$ certiorari invo&ves t!e e9ercise o$ ori%ina&
5'risdiction "!ic! ,'st .e e9press&# con$erred .# t!e Constit'tion or .# &a" and cannot .e i,p&ied $ro,
t!e ,ere
e9istence o$ appe&&ate 5'risdiction.32 T!'s, in t!e cases o$ Pi,ente& v. COMELEC,3)Garcia v. @e
Ces's,33Ie&oria v. COMELEC,3(@epart,ent o$ A%rarian Re$or, Ad5'dication 6oard v. L'.rica,34 and
Garcia v. Sandi%an.a#an,30 t!is Co'rt !as r'&ed a%ainst t!e 5'risdiction o$ co'rts or tri.'na&s over
petitions $or certiorari on t!e %ro'nd t!at t!ere is no &a" "!ic! e9press&# %ives t!ese tri.'na&s s'c!
po"er.3; It ,'st .e o.served, !o"ever, t!at "it! t!e e9ception o$ Garcia v. Sandi%an.a#an,3- t!ese
r'&in%s pertain not to re%'&ar co'rts .'t to tri.'na&s e9ercisin% <'asiG5'dicia& po"ers. =it! respect to t!e
Sandi%an.a#an, Rep'.&ic Act No. +34*3+ no" provides t!at t!e specia& cri,ina& co'rt !as e9c&'sive
ori%ina& 5'risdiction over petitions $or t!e iss'ance o$ t!e "rits o$ ,anda,'s, pro!i.ition, certiorari,!a.eas
corp's, in5'nctions, and ot!er anci&&ar# "rits and processes in aid o$ its appe&&ate 5'risdiction.
In t!e sa,e ,anner, Section 0 7)8, Artic&e IIII o$ t!e )*+- Constit'tion %rants po"er to t!e S'pre,e
Co'rt, in t!e e9ercise o$ its ori%ina& 5'risdiction, to iss'e "rits o$ certiorari, pro!i.ition and ,anda,'s. =it!
respect to t!e Co'rt o$ Appea&s, Section * 7)8 o$ 6atas Pa,.ansa 6&%. )3* 76P )3*8 %ives t!e appe&&ate
co'rt, a&so in t!e e9ercise o$ its ori%ina& 5'risdiction, t!e po"er to iss'e, a,on% ot!ers, a "rit o$
certiorari,"!et!er or not in aid o$ its appe&&ate 5'risdiction. As to Re%iona& Tria& Co'rts, t!e po"er to iss'e a
"rit o$ certiorari, in t!e e9ercise o$ t!eir ori%ina& 5'risdiction, is provided 'nder Section 3) o$ 6P )3*.
T!e $ore%oin% not"it!standin%, "!i&e t!ere is no e9press %rant o$ s'c! po"er, "it! respect to t!e CTA,
Section ), Artic&e IIII o$ t!e )*+- Constit'tion provides, nonet!e&ess, t!at 5'dicia& po"er s!a&& .e vested in
one S'pre,e Co'rt and in s'c! &o"er co'rts as ,a# .e esta.&is!ed .# &a" and t!at 5'dicia& po"er
inc&'des t!e d't# o$ t!e co'rts o$ 5'stice to sett&e act'a& controversies invo&vin% ri%!ts "!ic! are &e%a&&#
de,anda.&e and en$orcea.&e, and to deter,ine "!et!er or not t!ere !as .een a %rave a.'se o$ discretion
a,o'ntin% to &ac: or e9cess o$ 5'risdiction on t!e part o$ an# .ranc! or instr',enta&it# o$ t!e Govern,ent.
On t!e stren%t! o$ t!e a.ove constit'tiona& provisions, it can .e $air&# interpreted t!at t!e po"er o$ t!e
CTA inc&'des t!at o$ deter,inin% "!et!er or not t!ere !as .een %rave a.'se o$ discretion a,o'ntin% to
&ac: or e9cess o$ 5'risdiction on t!e part o$ t!e RTC in iss'in% an inter&oc'tor# order in cases $a&&in% "it!in
t!e e9c&'sive appe&&ate 5'risdiction o$ t!e ta9 co'rt. It, t!'s, $o&&o"s t!at t!e CTA, .# constit'tiona&
,andate, is vested "it! 5'risdiction to iss'e "rits o$ certiorari in t!ese cases.
Indeed, in order $or an# appe&&ate co'rt to e$$ective&# e9ercise its appe&&ate 5'risdiction, it ,'st !ave t!e
a't!orit# to iss'e, a,on% ot!ers, a "rit o$ certiorari. In trans$errin% e9c&'sive 5'risdiction over appea&ed ta9
cases to t!e CTA, it can reasona.&# .e ass',ed t!at t!e &a" intended to trans$er a&so s'c! po"er as is
dee,ed necessar#, i$ not indispensa.&e, in aid o$ s'c! appe&&ate 5'risdiction. T!ere is no perceiva.&e
reason "!# t!e trans$er s!o'&d on&# .e considered as partia&, not tota&.
Consistent "it! t!e a.ove prono'nce,ent, t!is Co'rt !as !e&d as ear&# as t!e case o$ C.M. T'ason M Co.,
Inc. v. Cara,i&&o, et a&.3* t!at qi$ a case ,a# .e appea&ed to a partic'&ar co'rt or 5'dicia& tri.'na& or .od#,
t!en said co'rt or 5'dicia& tri.'na& or .od# !as 5'risdiction to iss'e t!e e9traordinar# "rit o$ certiorari, in aid
o$ its appe&&ate 5'risdiction.r(2 T!is princip&e "as a$$ir,ed in @e Ces's v. Co'rt o$ Appea&s,() "!ere t!e
Co'rt stated t!at qa co'rt ,a# iss'e a "rit o$ certiorari in aid o$ its appe&&ate 5'risdiction i$ said co'rt !as
5'risdiction to revie", .# appea& or "rit o$ error, t!e $ina& orders or decisions o$ t!e &o"er co'rt.r(3 T!e
r'&in%s in C.M. T'ason and @e Ces's "ere reiterated in t!e ,ore recent cases o$ Ga&an%, Cr. v.
Geroni,o(( and 6'&i&is v. N'eJ.(4
F'rt!er,ore, Section ;, R'&e )(0 o$ t!e present R'&es o$ Co'rt provides t!at "!en .# &a", 5'risdiction is
con$erred on a co'rt or 5'dicia& o$$icer, a&& a'9i&iar# "rits, processes and ot!er ,eans necessar# to carr# it
into e$$ect ,a# .e e,p&o#ed .# s'c! co'rt or o$$icer.
I$ t!is Co'rt "ere to s'stain petitioners/ contention t!at 5'risdiction over t!eir certiorari petition &ies "it! t!e
CA, t!is Co'rt "o'&d .e con$ir,in% t!e e9ercise .# t"o 5'dicia& .odies, t!e CA and t!e CTA, o$ 5'risdiction
over .asica&&# t!e sa,e s'.5ect ,atter G precise&# t!e sp&itG5'risdiction sit'ation "!ic! is anat!e,a to t!e
order&# ad,inistration o$ 5'stice.(0 T!e Co'rt cannot accept t!at s'c! "as t!e &e%is&ative ,otive,
especia&&# considerin% t!at t!e &a" e9press&# con$ers on t!e CTA, t!e tri.'na& "it! t!e specia&iJed
co,petence over ta9 and tari$$ ,atters, t!e ro&e o$ 5'dicia& revie" over &oca& ta9 cases "it!o't ,ention o$
an# ot!er co'rt t!at ,a# e9ercise s'c! po"er. T!'s, t!e Co'rt a%rees "it! t!e r'&in% o$ t!e CA t!at since
appe&&ate 5'risdiction over private respondents/ co,p&aint $or ta9 re$'nd is vested in t!e CTA, it $o&&o"s t!at
a petition $or certiorari see:in% n'&&i$ication o$ an inter&oc'tor# order iss'ed in t!e said case s!o'&d,
&i:e"ise, .e $i&ed "it! t!e sa,e co'rt. To r'&e ot!er"ise "o'&d &ead to an a.s'rd sit'ation "!ere one co'rt
decides an appea& in t!e ,ain case "!i&e anot!er co'rt r'&es on an incident in t!e ver# sa,e case.
Stated di$$erent&#, it "o'&d .e so,e"!at incon%r'ent "it! t!e prono'nced 5'dicia& a.!orrence to sp&it
5'risdiction to conc&'de t!at t!e intention o$ t!e &a" is to divide t!e a't!orit# over a &oca& ta9 case $i&ed "it!
t!e RTC .# %ivin% to t!e CA or t!is Co'rt 5'risdiction to iss'e a "rit o$ certiorari a%ainst inter&oc'tor#
orders o$ t!e RTC .'t %ivin% to t!e CTA t!e 5'risdiction over t!e appea& $ro, t!e decision o$ t!e tria& co'rt
in t!e sa,e case. It is ,ore in consonance "it! &o%ic and &e%a& so'ndness to conc&'de t!at t!e %rant o$
appe&&ate 5'risdiction to t!e CTA over ta9 cases $i&ed in and decided .# t!e RTC carries "it! it t!e po"er to
iss'e a "rit o$ certiorari "!en necessar# in aid o$ s'c! appe&&ate 5'risdiction. T!e s'pervisor# po"er or
5'risdiction o$ t!e CTA to iss'e a "rit o$ certiorari in aid o$ its appe&&ate 5'risdiction s!o'&d coGe9ist "it!,
and .e a co,p&e,ent to, its appe&&ate 5'risdiction to revie", .# appea&, t!e $ina& orders and decisions o$
t!e RTC, in order to !ave co,p&ete s'pervision over t!e acts o$ t!e &atter.(;
A %rant o$ appe&&ate 5'risdiction i,p&ies t!at t!ere is inc&'ded in it t!e po"er necessar# to e9ercise it
e$$ective&#, to ,a:e a&& orders t!at "i&& preserve t!e s'.5ect o$ t!e action, and to %ive e$$ect to t!e $ina&
deter,ination o$ t!e appea&. It carries "it! it t!e po"er to protect t!at 5'risdiction and to ,a:e t!e
decisions o$ t!e co'rt t!ere'nder e$$ective. T!e co'rt, in aid o$ its appe&&ate 5'risdiction, !as a't!orit# to
contro& a&& a'9i&iar# and incidenta& ,atters necessar# to t!e e$$icient and proper e9ercise o$ t!at
5'risdiction. For t!is p'rpose, it ,a#, "!en necessar#, pro!i.it or restrain t!e per$or,ance o$ an# act
"!ic! ,i%!t inter$ere "it! t!e proper e9ercise o$ its ri%!t$'& 5'risdiction in cases pendin% .e$ore it.(-
Last&#, it "o'&d not .e a,iss to point o't t!at a co'rt "!ic! is endo"ed "it! a partic'&ar 5'risdiction s!o'&d
!ave po"ers "!ic! are necessar# to ena.&e it to act e$$ective&# "it!in s'c! 5'risdiction. T!ese s!o'&d .e
re%arded as po"ers "!ic! are in!erent in its 5'risdiction and t!e co'rt ,'st possess t!e, in order to
en$orce its r'&es o$ practice and to s'ppress an# a.'ses o$ its process and to de$eat an# atte,pted
t!"artin% o$ s'c! process.
In t!is re%ard, Section ) o$ RA *3+3 states t!at t!e CTA s!a&& .e o$ t!e sa,e &eve& as t!e CA and s!a&&
possess a&& t!e in!erent po"ers o$ a co'rt o$ 5'stice.
Indeed, co'rts possess certain in!erent po"ers "!ic! ,a# .e said to .e i,p&ied $ro, a %enera& %rant o$
5'risdiction, in addition to t!ose e9press&# con$erred on t!e,. T!ese in!erent po"ers are s'c! po"ers as
are necessar# $or t!e ordinar# and e$$icient e9ercise o$ 5'risdictionD or are essentia& to t!e e9istence,
di%nit# and $'nctions o$ t!e co'rts, as "e&& as to t!e d'e ad,inistration o$ 5'sticeD or are direct&#
appropriate, convenient and s'ita.&e to t!e e9ec'tion o$ t!eir %ranted po"ersD and inc&'de t!e po"er to
,aintain t!e co'rt/s 5'risdiction and render it e$$ective in .e!a&$ o$ t!e &iti%ants.(+
T!'s, t!is Co'rt !as !e&d t!at q"!i&e a co'rt ,a# .e e9press&# %ranted t!e incidenta& po"ers necessar# to
e$$ect'ate its 5'risdiction, a %rant o$ 5'risdiction, in t!e a.sence o$ pro!i.itive &e%is&ation, i,p&ies t!e
necessar# and 's'a& incidenta& po"ers essentia& to e$$ect'ate it, and, s'.5ect to e9istin% &a"s and
constit'tiona& provisions, ever# re%'&ar&# constit'ted co'rt !as po"er to do a&& t!in%s t!at are reasona.&#
necessar# $or t!e ad,inistration o$ 5'stice "it!in t!e scope o$ its 5'risdiction and $or t!e en$orce,ent o$ its
5'd%,ents and ,andates.r(* Hence, de,ands, ,atters or <'estions anci&&ar# or incidenta& to, or %ro"in%
o't o$, t!e ,ain action, and co,in% "it!in t!e a.ove princip&es, ,a# .e ta:en co%niJance o$ .# t!e co'rt
and deter,ined, since s'c! 5'risdiction is in aid o$ its a't!orit# over t!e principa& ,atter, even t!o'%! t!e
co'rt ,a# t!'s .e ca&&ed on to consider and decide ,atters "!ic!, as ori%ina& ca'ses o$ action, "o'&d not
.e "it!in its co%niJance.42
6ased on t!e $ore%oin% dis<'isitions, it can .e reasona.&# conc&'ded t!at t!e a't!orit# o$ t!e CTA to ta:e
co%niJance o$ petitions $or certiorari <'estionin% inter&oc'tor# orders iss'ed .# t!e RTC in a &oca& ta9 case
is inc&'ded in t!e po"ers %ranted .# t!e Constit'tion as "e&& as in!erent in t!e e9ercise o$ its appe&&ate
5'risdiction.
Fina&&#, it "o'&d .ear to point o't t!at t!is Co'rt is not a.andonin% t!e r'&e t!at, inso$ar as <'asiG5'dicia&
tri.'na&s are concerned, t!e a't!orit# to iss'e "rits o$ certiorari ,'st sti&& .e e9press&# con$erred .# t!e
Constit'tion or .# &a" and cannot .e i,p&ied $ro, t!e ,ere e9istence o$ t!eir appe&&ate 5'risdiction. T!is
doctrine re,ains as it app&ies on&# to <'asiG5'dicia& .odies.
=HEREFORE, t!e petition is @ENIE@.C!anRo.&esIirt'a&a"&i.rar#
NIPPON EHPRESS 7PHILIPPINES8 CORPORATION, Petitioner, v. COMMISSIONER OF INTERNAL
REIENUE, Respondent.
Petitioner Nippon E9press 7P!i&ippines8 Corporation 7petitioner8 is a corporation d'&# or%aniJed and
re%istered "it! t!e Sec'rities and E9c!an%e Co,,ission. It is a&so a va&'e1added ta9 7IAT81re%istered
entit# "it! t!e Lar%e Ta9pa#er @istrict o$ t!e 6'rea' o$ Interna& Reven'e 76IR8.3 For t!e #ear 322), it
re%'&ar&# $i&ed its a,ended <'arter&# IAT ret'rns. On Apri& 34, 322(, it $i&ed an ad,inistrative c&ai, $or
re$'nd o$ P32,(40,+34.3* representin% e9cess inp't ta9 attri.'ta.&e to its e$$ective&# Jero1rated sa&es in
322), co,p'ted as $o&&o"s(c!anro.&esvirt'a&a"&i.rar#
O'tp't IAT $ro, Ta9a.&e Sa&es 7)2P8 P 0,+3-,233.32
Less Inp't IAT $ro, Ta9a.&e Sa&es 7),-+*,))).(38
Inp't IAT $ro, cero1rated Sa&es 734,(+(,-(0.)-8
Re$'nda.&e E9cess Inp't IAT 7P 32,(40,+34.3*8
Pendin% revie" .# t!e 6IR, on Apri& 30, 322(, petitioner $i&ed a petition $or revie" "it! t!e CTA, re<'estin%
$or t!e iss'ance o$ a ta9 credit certi$icate in t!e a,o'nt o$ P32,(40,+34.3*.4c!anro.&esvirt'a&a"&i.rar#
On Can'ar# 3;, 322*, t!e First @ivision o$ t!e CTA denied t!e petition $or ins'$$icienc# o$ evidence.0 Upon
,otion $or reconsideration, !o"ever, t!e CTA First @ivision pro,'&%ated its A,ended @ecision,; dated
Marc! 34, 322*, orderin% t!e respondent, Co,,issioner o$ Interna& Reven'e 7CIR8 to iss'e a ta9 credit
certi$icate in $avor o$ petitioner in t!e a,o'nt o$ P)2,*3+,;2-.() representin% e9cess or 'n'ti&iJed inp't
ta9 $or t!e second, t!ird and $o'rt! <'arters o$ 322). T!e CTA First @ivision too: 5'dicia& notice o$ t!e
records o$ C.T.A. Case No. ;*;-, a&so invo&vin% petitioner, to s!o" t!at t!e c&ai, o$ inp't ta9 !ad not .een
app&ied a%ainst an# o'tp't ta9 in t!e s'cceedin% <'arters. As to t!e ti,e&iness o$ t!e $i&in% o$ petitionerQs
ad,inistrative and 5'dicia& c&ai,s, t!e CTA First @ivision r'&ed t!at "!i&e t!e ad,inistrative app&ication $or
re$'nd "as ,ade "it!in t!e t"o1#ear prescriptive period, petitionerQs i,,ediate reco'rse to t!e co'rt "as
a pre,at're invocation o$ t!e co'rtQs 5'risdiction d'e to t!e non1o.servance o$ t!e proced're in Section
))37@8- o$ t!e Nationa& Interna& Reven'e Code 7NIRC8 providin% t!at an appea& ,a# .e ,ade "it! t!e
CTA "it!in (2 da#s $ro, t!e receipt o$ t!e decision o$ t!e CIR den#in% t!e c&ai, or a$ter t!e e9piration o$
t!e )321da# period "it!o't action on t!e part o$ t!e CIR. Considerin%, !o"ever, t!at t!e CIR did not
re%ister !is o.5ection "!en !e $i&ed !is Ans"er, !e is dee,ed to !ave "aived !is o.5ection t!ereto.+ T!e
CIR so'%!t reconsideration .'t !is ,otion "as denied in t!e C'ne );, 322* Reso&'tion* o$ t!e CTA First
@ivision.
T!e CIR e&evated t!e case to t!e CTA En 6anc "!ic!, on C'ne )), 32)2, reversed and set aside t!e
Marc! 34, 322* A,ended @ecision and t!e C'ne );, 322* Reso&'tion o$ t!e CTA First @ivision.)2
Accordin%&#, petitionerQs c&ai, $or re$'nd or iss'ance o$ a ta9 credit certi$icate "as denied $or &ac: o$ ,erit.
T!e CTA En 6anc r'&ed t!at t!e sa&es invoices iss'ed .# petitioner "ere ins'$$icient to esta.&is! its Jero1
rated sa&e o$ services. =it!o't t!e proper IAT o$$icia& receipts iss'ed to its c&ients, t!e pa#,ents received
.# petitioner co'&d not <'a&i$# $or Jero1ratin% $or IAT p'rposes. As a res'&t, t!e c&ai,ed inp't IAT
pa#,ents a&&e%ed&# attri.'ta.&e to s'c! sa&es co'&d not .e %ranted.
T!e CTA En 6anc &ater c!an%ed its position on Septe,.er 33, 32)2 "!en it iss'ed its A,ended
@ecision)) %rantin% petitionerQs ,otion $or reconsideration, settin% aside its o"n C'ne )), 32)2 @ecision
and a$$ir,in% t!e Marc! 34, 322* A,ended @ecision o$ t!e CTA First @ivision. In vie" o$ t!e
prono'nce,ent o$ t!e Co'rt in t!e case o$ ATMT Co,,'nications Services P!i&ippines, Inc. v.
Co,,issioner o$ Interna& Reven'e,)3 t!at Section ))( o$ t!e NIRC did not distin%'is! .et"een a sa&es
invoice and an o$$icia& receipt, t!e CTA En 6anc $o'nd petitionerQs sa&es invoices to .e accepta.&e proo$ to
s'pport its c&ai, $or re$'nd or iss'ance o$ a ta9 credit certi$icate representin% its e9cess or 'n'ti&iJed inp't
IAT arisin% $ro, Jero1rated or e$$ective&# Jero1rated sa&es.
T!e CIR $i&ed a ,otion $or reconsideration, ar%'in% t!at t!e sa&es invoice, "!ic! s'pported t!e sa&e o$
%oods, "as not t!e sa,e as t!e o$$icia& receipt, "!ic! ,'st s'pport t!e sa&e o$ services. In addition, it
pointed o't t!at t!e CTA !ad no 5'risdiction over t!e petition $or revie" .eca'se it "as $i&ed .e$ore t!e
&apse o$ t!e )321da# period accorded to t!e CIR to decide on its ad,inistrative c&ai, $or inp't IAT
re$'nd.)(c!anro.&esvirt'a&a"&i.rar#
In anot!er reversa& o$ opinion, t!e CTA En 6anc set aside t!e Marc! 34, 322* A,ended @ecision and t!e
C'ne );, 322* Reso&'tion o$ t!e CTA First @ivision and dis,issed t!e petition $or revie" $or &ac: o$
5'risdiction. In its Ma# )(, 32)) Reso&'tion,)4 t!e CTA En 6anc !e&d t!at t!e )321da# period 'nder
Section ))37@8 o$ t!e NIRC, "!ic! %ranted t!e CIR t!e opport'nit# to act on t!e c&ai, $or re$'nd, "as
5'risdictiona& in nat're s'c! t!at petitionerQs $ai&'re to o.serve t!e said period .e$ore resortin% to 5'dicia&
action "arranted t!e dis,issa& o$ its petition $or revie" $or !avin% .een pre,at're&# $i&ed, in accordance
"it! t!e r'&in% in Co,,issioner o$ Interna& Reven'e v. Aic!i For%in% Co,pan# o$ Asia, Inc.)0 =it!
respect to t!e 'se o$ o$$icia& receipts interc!an%ea.&# "it! sa&es invoices, t!e ta9 co'rt cited t!e r'&in% o$
t!e Co'rt in Nepco P!i&ippines Corporation v. Co,,issioner o$ Interna& Reven'e); "!ic! conc&'ded t!at
a IAT invoice and a IAT receipt s!o'&d not .e con$'sed as re$errin% to t!e sa,e t!in%. A IAT invoice
"as t!e se&&erQs .est proo$ o$ t!e sa&e o$ t!e %oods or services to t!e .'#er "!i&e t!e IAT receipt "as t!e
.'#erQs .est evidence o$ t!e pa#,ent o$ %oods and services received $ro, t!e se&&er.
Hence, t!is petition.
T!e Iss'es
Petitioner raises t!e $o&&o"in% <'estionsc!anro.&esvirt'a&a"&i.rar#
=HETHER OR NOT THE COURT OF TAH APPEALS HAS NO CURIS@ICTION TO ENTERTAIN THE
INSTANT CASE. =HETHER OR NOT THE PETITIONERQS IAT INIOICES ARE INSUFFICIENT
PROOF TO SUPPORT ITS cERO1RATE@ SALES.)-c!anro.&esvirt'a&a"&i.rar#
T!e Co'rtQs R'&in%
T!e Co'rt $inds t!e petition to .e "it!o't ,erit.
As re%ards t!e $irst iss'e, petitioner ar%'es t!at t!e non1e9!a'stion o$ ad,inistrative re,edies is not a
5'risdictiona& de$ect as to prevent t!e ta9 co'rt $ro, ta:in% co%niJance o$ t!e case.)+ It ,ere&# renders t!e
$i&in% o$ t!e case pre,at're and ,a:es it s'scepti.&e to dis,issa& $or &ac: o$ ca'se o$ action, i$ invo:ed.
Considerin%, !o"ever, t!at t!e CIR $ai&ed to seasona.&# o.5ect to t!e $i&in% o$ t!e case .# petitioner "it!
t!e CTA, it is dee,ed to !ave "aived an# de$ect in t!e petition $or revie". In $act, petitioner points o't t!at
t!e t!is iss'e "as on&# raised $or t!e $irst ti,e in t!e respondentQs S'pp&e,enta& Motion $or
Reconsideration, dated @ece,.er (, 32)2, "!ic! "as $i&ed a$ter t!e pro,'&%ation o$ t!e Septe,.er 33,
32)2 A,ended @ecision o$ t!e CTA En 6anc. Fina&&#, petitioner insists t!at it cannot .e $a'&ted $or re&#in%
on prevai&in% CTA 5'rispr'dence re<'irin% t!at .ot! ad,inistrative and 5'dicia& c&ai,s $or re$'nd .e $i&ed
"it!in t"o 738 #ears $ro, t!e date o$ t!e $i&in% o$ t!e ret'rn and t!e pa#,ent o$ t!e ta9 d'e. 6eca'se t!is
case "as $i&ed ,ore t!an seven #ears prior to Aic!i, t!e doctrine espo'sed t!erein cannot .e app&ied
retroactive&# as it "o'&d i,pair petitionerQs s'.stantia& ri%!ts and "i&& deprive it o$ its ri%!t to
re$'nd.)*c!anro.&esvirt'a&a"&i.rar#
Petitioner is ,ista:en.
T!e provision in <'estion is Section ))37@8 7no" s'.para%rap! C8 o$ t!e NIRCc!anro.&esvirt'a&a"&i.rar#
Sec. ))3. Re$'nds or Ta9 Credits o$ Inp't Ta9
9 9 9
7@8 Period "it!in "!ic! Re$'nd or Ta9 Credit o$ Inp't Ta9es s!a&& .e Made. In proper cases, t!e
Co,,issioner s!a&& %rant a re$'nd or iss'e t!e ta9 credit certi$icate $or credita.&e inp't ta9es "it!in one
!'ndred t"ent# 7)328 da#s $ro, t!e date o$ s'.,ission o$ co,p&ete doc',ents in s'pport o$ t!e
app&ication $i&ed in accordance "it! S'.sections 7A8 and 768 !ereo$.
In case o$ $'&& or partia& denia& o$ t!e c&ai, $or ta9 re$'nd or ta9 credit, or t!e $ai&'re on t!e part o$ t!e
Co,,issioner to act on t!e app&ication "it!in t!e period prescri.ed a.ove, t!e ta9pa#er a$$ected ,a#,
"it!in t!irt# 7(28 da#s $ro, t!e receipt o$ t!e decision den#in% t!e c&ai, or a$ter t!e e9piration o$ t!e one
!'ndred t"ent# da#1period, appea& t!e decision or t!e 'nacted c&ai, "it! t!e Co'rt o$ Ta9 Appea&s.
7E,p!asis S'pp&ied8
A si,p&e readin% o$ t!e a.ove<'oted provision revea&s t!at t!e ta9pa#er ,a# appea& t!e denia& or t!e
inaction o$ t!e CIR on&# "it!in t!irt# 7(28 da#s $ro, receipt o$ t!e decision den#in% t!e c&ai, or t!e
e9piration o$ t!e )321da# period %iven to t!e CIR to decide t!e c&ai,. 6eca'se t!e &a" is cate%orica& in its
&an%'a%e, t!ere is no need $or $'rt!er interpretation .# t!e co'rts and non1co,p&iance "it! t!e provision
cannot .e 5'sti$ied.32 As e&o<'ent&# stated in RiJa& Co,,ercia& 6an:in% Corporation v. Inter,ediate
Appe&&ate Co'rt and 6F Ho,es, Inc.3)c!anro.&esvirt'a&a"&i.rar#
It .ears stressin% t!at t!e $irst and $'nda,enta& d't# o$ t!e Co'rt is to app&# t!e &a". =!en t!e &a" is c&ear
and $ree $ro, an# do'.t or a,.i%'it#, t!ere is no roo, $or constr'ction or interpretation. As !as .een o'r
consistent r'&in%, "!ere t!e &a" spea:s in c&ear and cate%orica& &an%'a%e, t!ere is no occasion $or
interpretationD t!ere is on&# roo, $or app&ication 7Ce.' Port&and Ce,ent Co. vs. M'nicipa&it# o$ Na%a, 34
SCRA1-2+ E)*;+F8.
=!ere t!e &a" is c&ear and 'na,.i%'o's, it ,'st .e ta:en to ,ean e9act&# "!at it sa#s and t!e co'rt !as
no c!oice .'t to see to it t!at its ,andate is o.e#ed 7C!artered 6an: E,p&o#ees Association vs. Op&e,
)(+ SCRA 3-( E)*+0FD L'Jon S'ret# Co., Inc. vs. @e Garcia, (2 SCRA ))) E)*;*FD A'i5ano vs.
@eve&op,ent 6an: o$ t!e P!i&ippines, (0 SCRA 3-2 E)*-2F8.
On&# "!en t!e &a" is a,.i%'o's or o$ do'.t$'& ,eanin% ,a# t!e co'rt interpret or constr'e its tr'e intent.
A,.i%'it# is a condition o$ ad,ittin% t"o or ,ore ,eanin%s, o$ .ein% 'nderstood in ,ore t!an one "a#, or
o$ re$errin% to t"o or ,ore t!in%s at t!e sa,e ti,e. A stat'te is a,.i%'o's i$ it is ad,issi.&e o$ t"o or
,ore possi.&e ,eanin%s, in "!ic! case, t!e Co'rt is ca&&ed 'pon to e9ercise one o$ its 5'dicia& $'nctions,
"!ic! is to interpret t!e &a" accordin% to its tr'e intent.33c!anro.&esvirt'a&a"&i.rar#
Moreover, contrar# to petitionerQs position, t!e )32s(21da# period is indeed ,andator# and 5'risdictiona&,
as recent&# r'&ed in Co,,issioner o$ Interna& Reven'e v. San Ro<'e Po"er Corporation.3( T!'s, $ai&'re
to o.serve t!e said period .e$ore $i&in% a 5'dicia& c&ai, "it! t!e CTA "o'&d not on&# ,a:e s'c! petition
pre,at're, .'t "o'&d a&so res'&t in t!e non1ac<'isition .# t!e CTA o$ 5'risdiction to !ear t!e said case.
6eca'se t!e )32s(2 da# period is 5'risdictiona&, t!e iss'e o$ "!et!er petitioner co,p&ied "it! t!e said
ti,e $ra,e ,a# .e .roac!ed at an# sta%e, even on appea&. =e&&1sett&ed is t!e r'&e t!at t!e <'estion o$
5'risdiction over t!e s'.5ect ,atter can .e raised at an# ti,e d'rin% t!e proceedin%s.
C'risdiction cannot .e "aived .eca'se it is con$erred .# &a" and is not dependent on t!e consent or
o.5ection or t!e acts or o,issions o$ t!e parties or an# one o$ t!e,.34 Conse<'ent&#, t!e $act t!at t!e CIR
$ai&ed to i,,ediate&# e9press its o.5ection to t!e pre,at're $i&in% o$ t!e petition $or revie" .e$ore t!e CTA
is o$ no ,o,ent.
As to petitionerQs contention t!at it re&ied on t!e previo's decisions o$ t!e CTA on t!e ,atter, t!e Co'rt
$inds it apt to <'ote its r'&in% in San Ro<'ec!anro.&esvirt'a&a"&i.rar#
T!ere is a&so t!e c&ai, t!at t!ere are n',ero's CTA decisions a&&e%ed&# s'pportin% t!e ar%',ent t!at t!e
$i&in% dates o$ t!e ad,inistrative and 5'dicia& c&ai,s are inconse<'entia&, as &on% as t!e# are "it!in t!e
t"o1#ear prescriptive period. S'$$ice it to state t!at CTA decisions do not constit'te precedents, and do
not .ind t!is Co'rt or t!e p'.&ic. T!at is "!# CTA decisions are appea&a.&e to t!is Co'rt, "!ic! ,a#
a$$ir,, reverse or ,odi$# t!e CTA decisions as t!e $acts and t!e &a" ,a# "arrant. On&# decisions o$ t!is
Co'rt constit'te .indin% precedents, $or,in% part o$ t!e P!i&ippine &e%a&
s#ste,.30c!anro.&esvirt'a&a"&i.rar#
P'rs'ant to t!e r'&in% o$ t!e Co'rt in San Ro<'e, t!e )32s(21da# period is ,andator# and 5'risdictiona&
$ro, t!e ti,e o$ t!e e$$ectivit# o$ Rep'.&ic Act 7R.A.8 No. +434 or t!e Ta9 Re$or, Act o$ )**-. T!e Co'rt,
!o"ever, too: into consideration t!e iss'ance .# t!e 6IR o$ R'&in% No. @A14+*12(, "!ic! e9press&# stated
t!at t!e ta9pa#er need not "ait $or t!e &apse o$ t!e )321da# period .e$ore see:in% 5'dicia& re&ie$. 6eca'se
ta9pa#ers cannot .e $a'&ted $or re&#in% on t!is dec&aration .# t!e 6IR, t!e Co'rt dee,ed it reasona.&e to
a&&o" ta9pa#ers to $i&e its 5'dicia& c&ai, even .e$ore t!e e9piration o$ t!e )321da# period. T!is e9ception is
to .e o.served $ro, t!e iss'ance o$ t!e said r'&in% on @ece,.er )2, 322( 'p 'nti& its reversa& .# Aic!i on
Octo.er ;, 32)2. In t!e &and,ar: case o$ Aic!i, t!is Co'rt ,ade a de$initive state,ent t!at t!e $ai&'re o$ a
ta9pa#er to "ait $or t!e decision o$ t!e CIR or t!e &apse o$ t!e )321da# period "i&& render t!e ti&in% o$ t!e
5'dicia& c&ai, "it! t!e CTA pre,at're.3; As a conse<'ence, its pro,'&%ation once a%ain ,ade it c&ear to
t!e ta9pa#ers t!at t!e )32s (21da# period ,'st .e o.served.
As &aid do"n in San Ro<'e, 5'dicia& c&ai,s $i&ed $ro, Can'ar# ), )**+ 'nti& t!e present s!o'&d strict&#
ad!ere to t!e )32s (21da# period re$erred to in Section ))3 o$ t!e NIRC. T!e on&# e9ception is t!e period
$ro, @ece,.er )2, 322( 'nti& Octo.er ;, 32)2, d'rin% "!ic!, 5'dicia& c&ai,s ,a# .e ti&ed even .e$ore t!e
e9piration o$ t!e )321da# period %ranted to t!e CIR to decide on t!e c&ai, $or re$'nd.
6ased on t!e $ore%oin% disc'ssion and t!e r'&in% in San Ro<'e, t!e petition ,'st $ai& .eca'se t!e 5'dicia&
c&ai, o$ petitioner "as $i&ed on Apri& 30, 322(, on&# one da# a$ter it s'.,itted its ad,inistrative c&ai, to t!e
CIR. Petitioner $ai&ed to "ait $or t!e &apse o$ t!e re<'isite )321da# period or t!e denia& o$ its c&ai, .# t!e
CIR .e$ore e&evatin% t!e case to t!e CT A .# a petition $or revie". As its 5'dicia& c&ai, "as $i&ed d'rin%
"!ic! strict co,p&iance "it! t!e )32s (21da# period "as re<'ired, t!e Co'rt cannot .'t dec&are t!at t!e
$i&in% o$ t!e petition $or revie" "it! t!e CT A "as pre,at're and t!at t!e CTA !ad no 5'risdiction to !ear
t!e case.
Havin% t!'s conc&'ded, t!e Co'rt sees no need to disc'ss ot!er iss'es "!ic! ,a# !ave .een raised in
t!e petition.
=HEREFORE, t!e petition is @ENIE@.
PEOPLE OF THE PHILIPPINES, Petitioner, v. HON. SAN@IGAN6ABAN, FIRST @IIISION M THIR@
@IIISION, HERNAN@O 6ENITO PEREc, ROSARIO PEREc, RAMON ARCEO AN@ ERNEST
ESCALER, Respondents.
EG.R. No. )+*2;(F
PEOPLE OF THE PHILIPPINES, Petitioner, v. HON. SAN@IGAN6ABAN, SECON@ @IIISION,
HERNAN@O 6ENITO PEREc, ROSARIO SALIA@OR PEREc, ERNEST @E LEON ESCALER AN@
RAMON CASTILLO ARCEO, CR., Respondents.
On Nove,.er )3, 3223, Con%ress,an =i&$rido 6. Ii&&ara,a o$ 6'&acan 7Con%. Ii&&ara,a8 de&ivered a
privi&e%e speec! in t!e Ho'se o$ Representatives deno'ncin% acts o$ .ri.er# a&&e%ed&# co,,itted .# a
!i%! ran:in% %overn,ent o$$icia& "!o, !e t!en ca&&ed t!e q3 Mi&&ion @o&&ar Man.r) In reaction, t!e O$$ice o$
t!e President directed t!e Presidentia& AntiGGra$t and Co,,ission 7PAGC8 to cond'ct an in<'ir# on t!e
e9post o$ Con%. Ii&&ara,a. PAGC sent "ritten co,,'nications to Con%. Ii&&ara,a, Con%. Mar: Ci,eneJ,
Senator Pan$i&o Lacson and respondent Secretar# o$ C'stice Hernando 6. PereJ invitin% t!e, to provide
in$or,ation and doc',ents on t!e a&&e%ed .ri.er# s'.5ect o$ t!e e9post.3 On Nove,.er )+, 3223, Con%.
Ii&&ara,a responded .# &etter to PAGC/s invitation .# con$ir,in% t!at Secretar# PereJ "as t!e
%overn,ent o$$icia& "!o q!aEdF :no"&ed%e or connection "it! t!e .ri.er# s'.5ect o$ !is e9pose.r( In !is
o"n &etter o$ Nove,.er )+, 3223, !o"ever, Secretar# PereJ denied .ein% t!e Mi&&ionG@o&&ar Man re$erred
to in Con%. Ii&&ara,a/s privi&e%e speec!.4 On Nove,.er 30, 3223, Con%. Ci,eneJ de&ivered a privi&e%e
speec! in t!e Ho'se o$ Representatives con$ir,in% Con%. Ii&&ara,a/s e9post, and acc'sin% Secretar#
PereJ o$ e9tortin% USu3 Mi&&ion $ro, !i, in Fe.r'ar# 322).0
On Nove,.er 30, 3223, t!en O,.'ds,an Si,eon Marce&o re<'ested PAGC to s'.,it doc',ents
re&evant to t!e e9post.; On Nove,.er 3;, 3223, O,.'ds,an Marce&o $or,a&&# re<'ested Con%. Ci,eneJ
to s'.,it a s"orn state,ent on !is e9post.- Con%. Ci,eneJ co,p&ied on @ece,.er 3(, 3223 .#
s'.,ittin% !is co,p&aintGa$$idavit to t!e O$$ice o$ t!e O,.'ds,an. T!e co,p&aintGa$$idavit "as initia&&#
doc:eted as CPLGCG23G)**3. On t!e sa,e da#, t!e Specia& Action Tea, o$ t!e Fact Findin% and
Inte&&i%ence Researc! O$$ice 7FIRO8 o$ t!e O$$ice o$ t!e O,.'ds,an re$erred Con%. Ci,eneJ/s co,p&aintG
a$$idavit to t!e Eva&'ation and Pre&i,inar# Investi%ation 6'rea' and to t!e Ad,inistrative Ad5'dication
6oard, .ot! o$ t!e O$$ice o$ t!e O,.'ds,an, $or pre&i,inar# investi%ation and ad,inistrative ad5'dication,
respective&#.+cra&a"&a"&i.rar#
T!e co,p&aintGa$$idavit o$ Ci,eneJ "as reGdoc:eted as OM6GCGCG23G2+0-L, $or t!e cri,ina& case in
"!ic! t!e respondents "ere Secretar# PereJ, Ernest L. Esca&er and Ra,on C. Arceo, Cr.D and as OM6G
CGAG23G2;()L, $or t!e ad,inistrative case invo&vin% on&# Secretar# PereJ as respondent.*
On Can'ar# 3, 322(, a Specia& Pane& co,posed o$ Att#. Eve&#n 6a&iton, Att#. Mar# S'san G'i&&er,o and
Att#. Cose de Ces's "as created to eva&'ate and cond'ct an investi%ation o$ CPLGCG23G)**3.
On even date, Secretar# PereJ, t!ro'%! co'nse&, re<'ested O,.'ds,an Marce&o t!at t!e O$$ice o$ t!e
O,.'ds,an itse&$ direct&# veri$# $ro, t!e Co'tt/s 6an: "!et!er !e 7Secretar# PereJ8 !ad ever !e&d an#
acco'nt in t!at .an: to "!ic! t!e s', o$ USu3 Mi&&ion !ad .een re,itted .# Con%. Ci,eneJ.)2
On Can'ar# )0, 322(, O,.'ds,an Marce&o approved t!e reco,,endation o$ t!e Specia& Pane& to re$er
t!e co,p&aint o$ Con%. Ci,eneJ to FIRO $or a $'&&G.&o"n $actG$indin% investi%ation.))cra&a"red
On C'ne 4, 322(, t!e O$$ice o$ t!e O,.'ds,an received t!e &etter dated Ma# (2, 322( $ro, t!e co'nse&
o$ Con%. Ci,eneJ, s'.,ittin% t!e s'pp&e,enta& co,p&aintGa$$idavit dated Apri& 4, 322( o$ Con%. Ci,eneJ.
In !is &etter dated C'&# (, 322(, Secretar# PereJ, t!ro'%! co'nse&, so'%!t t!e dis,issa& o$ t!e co,p&aint
$or &ac: o$ pro.a.&e ca'se.)3
On C'&# )-, 322(, Assistant O,.'ds,an Pe&a%io S. Aposto& in$or,ed Secretar# PereJ a.o't t!e &etter
$ro, Co'tts 6an: statin% t!at qHernando 6. PereJr !ad no acco'nt "it! it, and ass'red t!at t!e &etter
"o'&d .e considered in t!e $ina& reso&'tion o$ t!e case.)(
On A'%'st 33, 3220, O,.'ds,an Marce&o created a ne" Specia& Pane& to eva&'ate CPLGCG23G)**3,
and, i$ "arranted, to cond'ct ad,inistrative and pre&i,inar# investi%ations, t!ere.# s'persedin% t!e
creation o$ t!e Specia& Pane& $or,ed on Can'ar# 3, 322(.)4
On Nove,.er )4, 3220, t!e Fie&d Investi%ation O$$ice 7FIO8 co,p&eted its $actG$indin% investi%ation and
$i&ed co,p&aints a%ainst t!e $o&&o"in% individ'a&s, na,e&#c!anRo.&esvirt'a&La"&i.rar#
For,er C'stice Secretar# Hernando 6. PereJ, Rosario S. PereJ, Ernesto L. Esca&er, Ra,on C. Arceo and
Co!n @oes $or vio&ation o$ Section (7.8 o$ R.A. No. (2)*D
For,er C'stice Secretar# Hernando 6. PereJ $or vio&ation o$ t!e $o&&o"in% Section + in re&ation to Section
)) o$ R.A. No. ;-)(, Artic&e )+( 7Per5'r#8 o$ t!e Revised Pena& Code, and Artic&e )-), par. 4 7Fa&si$ication8
o$ t!e RPCD and
For,er C'stice Secretar# Hernando 6. PereJ, Rosario S. PereJ, Ernest L. Esca&er, Ra,on C. Arceo and
Co!n @oes $or vio&ation o$ t!e provisions o$ R.A. )(-*.)0
On Nove,.er 3(, 3220, t!e Specia& Pane& directed Secretar# PereJ 7"!o !ad ,ean"!i&e resi%ned $ro,
o$$ice8, !is "i$e Rosario S. PereJ 7Mrs. PereJ8, Esca&er and Arceo to s'.,it t!eir co'nterGa$$idavits in
OM6GCGCG23G2+0-GL, OM6GCGCG20G2;((GN, OM6GCGCG20G2;(4GN and OM6GCGCG20G2;(0GN
7cri,ina& cases8. In anot!er order o$ t!e sa,e date, t!e Specia& Pane& directed $or,er Secretar# PereJ to
$i&e !is co'nterGa$$idavit in OM6GCGAG23G2;()GL 7ad,inistrative case8.);
On Nove,.er 3*, 3220, t!e respondents $i&ed an 'r%ent ,otion $or e9tension o$ ti,e to $i&e t!eir co'nterG
a$$idavits.
On @ece,.er 3, 3220, t!e co'nse& $or Esca&er entered !is appearance and so'%!t t!e e9tension o$ t!e
ti,e to $i&e Esca&er/s co'nterGa$$idavit.)-
On @ece,.er 0, 3220, t!e Specia& Pane& ordered t!e respondents to $i&e t!eir co'nterGa$$idavits "it!in ten
da#s $ro, @ece,.er 4, 3220, or 'nti& @ece,.er )4, 3220.)+
On @ece,.er -, 3220, Asst. O,.'ds,an Aposto& iss'ed PAMO O$$ice Order No. 33, Series o$ 3220,
creatin% a ne" tea, o$ investi%ators to assist in t!e pre&i,inar# investi%ation and ad,inistrative
ad5'dication o$ OM6GCGCG23G2+0-L, OM6GCGAG23G2;()L 7ad,inistrative case8, OM6GCGCG20G2;((N
to OM6GCGCG2;(0N 7$or$eit're proceedin%s 'nder Rep'.&ic Act No. )(-*8. T!e o$$ice order cance&&ed
and s'perseded PAMO O$$ice Order No. 2)G322(, Series o$ 322(.)*
On @ece,.er )3, 3220, $or,er Secretar# PereJ, Mrs. PereJ and Arceo $i&ed an 'r%ent ,otion to .e
$'rnis!ed copies o$ t!e co,p&aints.32 On @ece,.er )(, 3220, t!e# s'.,itted a conso&idated 5oint
co'nterGa$$idavit dated @ece,.er )3, 3220.3)
On @ece,.er )0, 3220, t!e respondents $i&ed a ,ani$estation to "!ic! t!e# attac!ed t!e a$$idavit o$ Att#.
C!ona @i,a#'%a.33
On @ece,.er 32, 3220, Esca&er, instead o$ $i&in% !is co'nterGa$$idavit, ,oved to dis<'a&i$# t!e O$$ice o$
t!e O,.'ds,an $ro, cond'ctin% t!e pre&i,inar# investi%ation, and to re<'ire t!e Specia& Pane& to t'rn
over t!e investi%ation to t!e @epart,ent o$ C'stice 7@OC8.3(
On @ece,.er 33, 3220, t!e respondents s'.,itted t!e a$$idavit o$ C!ie$ State Prosec'tor Covencito
c'Lo.34
On @ece,.er 3*, 3220, t!e Specia& Pane& denied t!e ,otion to dis<'a&i$# t!e O$$ice o$ t!e O,.'ds,an
$ro, cond'ctin% t!e pre&i,inar# investi%ation, and ordered Esca&er to s'.,it !is co'nterGa$$idavit "it!in
$ive da#s $ro, notice.30cra&a"red
On Can'ar# 4, 322;, Con%. Ci,eneJ $i&ed an 'r%ent ,otion $or e9tension o$ t!e period to $i&e !is opposition
to t!e ,otion ear&ier $i&ed .# Esca&er, and to .e %ranted a ne" period to rep&# to t!e conso&idated 5oint
co'nterGa$$idavit o$ t!e PereJes and Arceo.3;
6et"een Can'ar# *, 322; and Fe.r'ar# )2, 322;, Con%. Ci,eneJ $i&ed 'r%ent ,otions $or ti,e to $i&e !is
opposition, t!e &ast o$ t!e, see:in% an e9tension 'nti& Fe.r'ar# )2, 322;.3-
On Fe.r'ar# 3), 322;, t!e PereJes and Arceo reiterated t!eir 'r%ent ,otion to .e $'rnis!ed copies o$ t!e
co,p&aints.3+
On Fe.r'ar# 33, 322;, Con%. Ci,eneJ opposed Esca&er/s ,otion to dis<'a&i$# t!e O$$ice o$ t!e
O,.'ds,an.3* On t!e sa,e date, Esca&er as:ed $or at &east 32 da#s $ro, Fe.r'ar# )-, 322; 7or 'nti&
Marc! *, 322;8 "it!in "!ic! to rep&# to Con%. Ci,eneJ/s opposition to !is ,otion.(2 On Marc! *, 322;,
Esca&er rep&ied to Con%. Ci,eneJ/s opposition.() On Marc! 3+, 322;, Con%. Ci,eneJ so'%!t &eave to $i&e
a re5oinder to Esca&er/s rep&#.(3
On Ma# )0, 322;, Esca&er ,oved $or t!e reconsideration o$ t!e order o$ @ece,.er 3*, 3220.((
On Ma# 30, 322;, t!e Specia& Pane& denied Esca&er/s ,otion $or reconsiderationD directed t!e FIO qto &et
respondent Esca&er e9a,ine, co,pare, cop# and o.tain an# and a&& doc',entar# evidence descri.ed,
attac!ed to and $or,in% part o$ t!e co,p&aintsr o$ t!e casesD and %ranted Esca&er an e9tension o$ $ive
da#s "it!in "!ic! to s'.,it !is co'nterGa$$idavit.(4
A$ter Esca&er $ai&ed to s'.,it !is co'nterGa$$idavit despite t!e &apse o$ t!e $ive da# period %iven to !i,, t!e
pre&i,inar# investi%ation "as ter,inated.(0
On A'%'st 3(, 322;, Esca&er co,,enced in t!is Co'rt a specia& civi& action $or certiorari "it! app&ication
$or a te,porar# restrainin% order 7TRO8 doc:eted as G.R. No. )-(*;-G-).(; On Septe,.er 4, 322;, t!e
Co'rt re<'ired t!e O$$ice o$ t!e O,.'ds,an to co,,ent on t!e petition o$ Esca&er.(-
On Nove,.er ;, 322;, t!e Specia& Pane& iss'ed a 5oint reso&'tion, $indin% pro.a.&e ca'se and
reco,,endin% t!at cri,ina& in$or,ations .e $i&ed a%ainst t!e respondents, as $o&&o"s
)8
For,er Secretar# Hernando 6. PereJ, Rosario S. PereJ, Ernest L. Esca&er and Ra,on S. Arceo, Cr. $or
E9tortion 7Ro..er#8 'nder par. 0 o$ Artic&e 3*4 in re&ation to Artic&e 3*( o$ t!e Revised Pena& CodeD

38
For,er Secretar# Hernando 6. PereJ, Rosario S. PereJ, Ernest L. Esca&er and Ra,on S. Arceo, Cr. $or
vio&ation o$ Section ( 7.8 o$ Rep. Act. (2)*.

(8
For,er Secretar# Hernando 6. PereJ $or Fa&si$ication o$ P'.&ic @oc',ents 'nder Artic&e )-) par. 4 o$ t!e
Revised Pena& Code.

48
For,er Secretar# Hernando 6. PereJ $or vio&ation o$ Sec. -, R.A. (2)* in re&ation to Section + o$ R.A.
;-)(.vSUP STBLEw?COLOR RG67300, 2, 28Dr xE(+FvOSUPx
On Can'ar# 0, 322-, O,.'ds,an Ma. Merceditas G'tierreJ 7O,.'ds,an G'tierreJ8, "!o !ad
,ean"!i&e rep&aced t!e resi%ned O,.'ds,an Marce&o, approved t!e 5oint reso&'tion o$ t!e Specia&
Pane&.(*
On Can'ar# )), 322-, t!e PereJes and Arceo so'%!t t!e reconsideration o$ t!e 5oint reso&'tion,42 and
s'pp&e,ented t!eir ,otion $or t!at p'rpose "it! additiona& ar%',ents on Can'ar# )0, 322-.4)
On Can'ar# )-, 322-, Arceo $i&ed an e9 parte ,otion $or &eave to ad,it attac!ed s'pp&e,enta& ,otion $or
reconsideration.43
On Can'ar# 34, 322-, t!e PereJes and Arceo $i&ed an 'r%ent ,otion to s'spend proceedin%s. On
Fe.r'ar# ;, 322-, Esca&er a&so $i&ed a ,otion to s'spend proceedin%s e9 a.'ndanti ad ca'te&a,.4(
On Marc! )0, 322-, Con%. Ci,eneJ as:ed $or ti,e to co,,ent on t!e respondents/ ,otion $or
reconsideration. He $i&ed anot!er ,otion $or e9tension o$ t!e ti,e to co,,ent on Apri& 3-, 322-.44
On Septe,.er )+, 322-, t!e PereJes pra#ed t!at t!e proceedin%s .e !e&d in a.e#ance to a"ait t!e r'&in%
on t!eir app&ication $or intervention in Esca&er/s action in t!e Co'rt. On Octo.er ), 322-, t!e# $i&ed a
,otion to dis,iss.40
On Octo.er 3, 322-, Con%. Ci,eneJ s'.,itted !is a$$idavit o$ desistance.4; T!'s, on Octo.er 4, 322-,
t!e PereJes $i&ed an e9 parte ,otion $or reso&'tion on t!e .asis o$ t!e desistance .# Con%. Ci,eneJ.4-
On Can'ar# 30, 322+, t!e Specia& Pane& iss'ed an o,ni.'s reso&'tion den#in% t!e ori%ina& and
s'pp&e,enta& ,otions $or reconsideration o$ t!e PereJes and ArceoD t!eir ,otion to s'spend t!e
proceedin%sD Esca&er/s ,otion to s'spend proceedin%s e9 a.'ndanti ad ca'te&a,D and t!e PereJes/
,otion to dis,iss.4+
On Apri& )+, 322+, t!e PereJes .ro'%!t a petition $or certiorari "it! an app&ication $or a "rit o$ pre&i,inar#
in5'nction in t!is Co'rt 7G.R. No. )+3(;2G;(8.4* In d'e ti,e, t!e Co'rt re<'ired t!e respondents in G.R.
No. )+3(;2G;( to $i&e t!eir co,,ents on t!e petition.02
On Apri& )+, 322+, t!e O$$ice o$ t!e O,.'ds,an $i&ed in t!e Sandi%an.a#an $o'r in$or,ations a%ainst
respondents, na,e&#c!anro.&esvirt'a&&a"&i.rar#
$or vio&ation o$ Sec. ( 7.8 o$ Rep. Act (2)*, as a,endedD
$or Ro..er# 7Art. 3*(, in re&ation to Art. 3*4, Revised Pena& CodeD
$or Fa&si$ication o$ P'.&icOO$$icia& @oc',ent 'nder Art. )-) o$ t!e Revised Pena& CodeD and
$or vio&ation o$ Section -, Rep. Act (2)*, as a,ended, in re&ation to Section +, Rep. Act ;-)(.0)
Cri,ina& Case No. S6G2+GCRMG23;0
EIio&ation o$ Section (7.8 o$ Rep'.&ic Act No. (2)*F
T!e in$or,ation a&&e%in% t!e vio&ation o$ Section (7.8 o$ Rep'.&ic Act No. (2)*, "!ic! "as doc:eted as
Cri,ina& Case No. S6G2+GCRMG23;0 entit&ed Peop&e v. Hernando 6enito PereJ, et. a&., and "as ra$$&ed
to t!e First @ivision o$ t!e Sandi%an.a#an,03 averredc!anRo.&esvirt'a&La"&i.rar#
T!at d'rin% t!e ,ont! o$ Fe.r'ar#, 322) and so,eti,e prior or s'.se<'ent t!ereto in t!e Cit# o$ Ma:ati,
P!i&ippines, and "it!in t!e 5'risdiction o$ t!is Honora.&e Co'rt, acc'sed Hernando 6. PereJ, a !i%!
ran:in% p'.&ic o$$icer, .ein% t!en t!e Secretar# o$ t!e @epart,ent o$ C'stice, "!i&e in t!e per$or,ance o$
!is o$$icia& $'nction, co,,ittin% t!e o$$ense in re&ation to !is o$$ice and ta:in% advanta%e t!ereo$,
conspirin%, con$a.'&atin% and con$ederatin% "it! acc'sed Ernest L. Esca&er, Rosario S. PereJ and Ra,on
C. Arceo, a&& private individ'a&s, did t!en and t!ere "i&$'&&#, 'n&a"$'&&# and cri,ina&&# re<'est and de,and
t!e a,o'nt o$ US T=O MILLION @OLLARS 7u3,222,222.228 $or !i,se&$ andOor ot!er persons $ro, Mar:
Ci,eneJ a.:.a. Mario 6. Crespo, and t!erea$ter s'cceeded in receivin% $ro, t!e &atter t!e s', o$
USu),***,*;0.22 in consideration o$ acc'sed Hernando S. PereJ/s desistin% $ro, press'rin% Mar:
Ci,eneJ to e9ec'te a$$idavits i,p&icatin% tar%et persona&ities invo&ved in t!e p&'nder case a%ainst $or,er
President Cosep! hErap/ Estrada and in connection "it! t!e pendin% app&ication o$ Mar: Ci,eneJ $or
ad,ission into t!e =itness Protection Pro%ra, o$ t!e %overn,ent, over "!ic! transaction acc'sed
Hernando S. PereJ !ad to intervene in !is o$$icia& capacit# 'nder t!e &a", to t!e da,a%e and pre5'dice o$
Mar: Ci,eneJ.
CONTRARB TO LA=.0(C!anRo.&esIirt'a&a"&i.rar#
On Ma# +, 322+, t!e PereJes ,oved to <'as! t!e in$or,ation.04 Esca&er presented a si,i&ar ,otion to
<'as! e9 a.'ndanti ad ca'te&a, on Ma# )3, 322+,00 "!i&e Arceo adopted t!e ,otions o$ t!e PereJes
and Esca&er on Ma# )(, 322+.0; On C'ne 4, 322+, t!e O$$ice o$ t!e O,.'ds,an co'ntered "it! a
conso&idated opposition.0-
On C'&# )-, 322+, t!e First @ivision o$ t!e Sandi%an.a#an pro,'&%ated its reso&'tion den#in% t!e ,otions
to <'as!,0+ disposin% t!'s&#c!anRo.&esvirt'a&La"&i.rar#
=HEREFORE, in vie" o$ t!e $ore%oin%, t!e Motion to A'as! o$ acc'sed Hernando 6. PereJ and Rosario
S. PereJ and t!e 'r%ent E9GA.'danti Ad Ca'te&a, Motion to A'as! o$ acc'sed Ernest Esca&er are
!ere.# @ENIE@ $or &ac: o$ ,erit.
Accordin%&#, &et t!e arrai%n,ent o$ t!e acc'sed !erein proceed on C'&# )+, 322+ at +(2 in t!e ,ornin% as
previo's&# set .# t!e Co'rt.
SO OR@ERE@.
Respondents separate&# so'%!t t!e reconsideration o$ t!e reso&'tion o$ denia& o$ t!eir ,otions to <'as!.
On Nove,.er )(, 322+, t!e Sandi%an.a#an First @ivision %ranted t!e ,otions $or reconsideration,0*
renderin% t!e $o&&o"in% ratiocination, to "itc!anRo.&esvirt'a&La"&i.rar#
9 9 9
A$ter a second !ard &oo: on t!e respective contentions o$ t!e parties, t!e Co'rt is inc&ined to %rant t!e
Motions $or Reconsideration o$ t!e acc'sed and per$orce %rant t!eir ,otion to <'as! t!e In$or,ation $i&ed
a%ainst t!e, in t!is case.
It is a9io,atic t!at as a %enera& r'&e prere<'isite, a ,otion to <'as! on t!e %ro'nd t!at t!e In$or,ation
does not constit'te t!e o$$ense c!ar%ed, or an# o$$ense $or t!at ,atter, s!o'&d .e reso&ved on t!e .asis o$
t!e $act'a& a&&e%ations t!erein "!ose tr't! and veracit# are !#pot!etica&&# ad,ittedD and on additiona& $acts
ad,itted or not denied .# t!e prosec'tion. I$ t!e $acts in t!e In$or,ation do not constit'te an o$$ense, t!e
co,p&aint or in$or,ation s!o'&d .e <'as!ed .# t!e co'rt.
9 9 9
It is c&ear t!at t!e a,.it o$ Section ( 7.8 o$ RA (2)* is speci$ic. It is &i,ited on&# to contracts or transaction
invo&vin% ,onetar# consideration "!ere t!e p'.&ic o$$icer !as a't!orit# to intervene 'nder t!e &a". T!'s,
t!e re<'estin% or de,andin% o$ an# %i$t, present, s!are, percenta%e, or .ene$it covered .# said Section
(7.8 ,'st .e in connection "it! a qcontract or transactionr invo&vin% q,onetar# considerationr "it! t!e
%overn,ent "!erein t!e p'.&ic o$$icer in !is o$$icia& capacit# !as to intervene 'nder t!e &a". In t!is re%ard,
t!e S'pre,e Co'rt in Soriano, Cr. vs. Sandi%an.a#an constr'ed t!e ter, qcontractr or qtransactionr
covered .# Section (7.8 o$ RA (2)*, as $o&&o"s G
qIt is o.vio's t!at t!e investi%ation cond'cted .# t!e petitioner "as not a contract. Neit!er "as it a
transaction .eca'se t!is ter, ,'st .e constr'ed as ana&o%o's to t!e ter,s "!ic! precedes it. A
transaction &i:e a contract, is one "!ic! invo&ves so,e consideration as in credit transactions and t!is
e&e,ent 7consideration8 is a.sent in t!e investi%ation cond'cted .# t!e petitioner.r 7E,p!asis
s'pp&ied8c!anro.&esvirt'a&a"&i.rar#
T!'s, app&#in% t!e a.ove constr'ction o$ t!e S'pre,e Co'rt in t!e case at .enc!, t!e Co'rt .e&ieves and
so !o&ds t!at t!e a&&e%ed desistance o$ acc'sed Hernando 6. PereJ q$ro, press'rin% Mar: Ci,eneJ to
e9ec'te a$$idavits i,p&icatin% tar%et persona&ities invo&ved in t!e p&'nder case a%ainst $or,er President
Cosep! hErap/ Estrada and in connection "it! t!e pendin% app&ication o$ Mar: Ci,eneJ $or ad,ission into
t!e =PP o$ t!e %overn,entr, cannot, .# an# stretc! o$ t!e i,a%ination, .e considered asqcontractr or
qtransactionr as de$ined "it!in t!e a,.it o$ t!e $o'rt! e&e,ent o$ t!e o$$ense 'nder Section (7.8 o$ RA
(2)* .eca'se no q,onetar# considerationr as in credit transaction is invo&ved.
T!e Co'rt $inds 'ntena.&e t!e prosec'tion/s contention t!at t!e e9ec'tion .# Mar: Ci,eneJ o$ t!e
a$$idavits in connection "it! !is pendin% app&ication $or ad,ission in t!e =PP 7and not t!e a&&e%ed
desistance o$ acc'sed Hernando 6. PereJ $ro, press'rin% Mar: Ci,eneJ to e9ec'te a$$idavits i,p&icatin%
tar%et persona&ities invo&ved in t!e p&'nder case a%ainst President Estrada8 is t!e ver# contract or
transaction re<'ired .# t!e o$$ense c!ar%ed in t!is caseD and t!at a&& t!e e&e,ents o$ a contract
conte,p&ated t!erein are present as t!ere is a&&e%ed&# consent .et"een t!e %overn,ent and Mar:
Ci,eneJ, o.5ect or s'.5ect ,atter "!ic! is t!e e9ec'tion o$ a$$idavits in connection "it! !is app&ication $or
ad,ission in t!e =PP, and a ca'se or consideration "!ic! consists o$ sec'rit# and ,onetar# .ene$its to
.e %iven .# t!e %overn,ent to Mar: Ci,eneJ in e9c!an%e $or !is participation as a "itness 'nder t!e
=PP.
For even ass',in% $or t!e sa:e o$ ar%',ent t!at t!e pendin% app&ication o$ Mar: Ci,eneJ $or ad,ission
in t!e =PP can .e considered as a contract or transaction, it .ears stressin% t!at t!e principa&
consideration $or t!e said app&ication o$ Mar: Ci,eneJ is t!e &atter/s o.&i%ation to testi$# as a "itness 'nder
t!e =PP on one !and and !is entit&e,ent to t!e protection %ranted to a "itness in t!e =PP on t!e ot!er
!and and as s'c!, does not entai& an# ,one# consideration. Certain&#, t!is is not t!e 7,onetar#8
consideration "!ic! is essentia& or invo&ved in credit transactions. An# pec'niar# or ,onetar# e9pense
t!at ,a# .e inc'rred .# t!e Govern,ent as a res'&t o$ t!e i,p&e,entation o$ t!e pro%ra, in $avo'r o$
Mar: Ci,eneJ is p're&# incidenta&. S'c! a&&e%ed ,onetar# .ene$it is de$inite&# not t!e reason t!at i,pe&&ed
Mar: Ci,eneJ to a&&e%ed&# avai& o$ t!e =PP o$ t!e %overn,ent.
More precise&#, !o"ever, "!at appears as t!e ,ain consideration o$ t!e a&&e%ed de,and or receipt o$
acc'sed Hernando 6. PereJ o$ t!e s', o$ USu3,222,222.22 $ro, Mar: Ci,eneJ is t!e $or,er/s a&&e%ed
desistance $ro, press'rin% t!e &atter to e9ec'te a$$idavits i,p&icatin% tar%eted persona&ities in t!e p&'nder
case a%ainst $or,er President Estrada. In t!e &i%!t o$ t!e r'&in% o$ t!e S'pre,e Co'rt in Soriano vs.
Sandi%an.a#an, s'pra, s'c! a&&e%ed desistance o$ acc'sed Hernando 6. PereJ 7and even t!e app&ication
o$ Mar: Ci,eneJ $or ad,ission into t!e =PP as ar%'ed .# t!e prosec'tion8 can !ard&# .e considered as a
qcontractr or qtransactionr t!at is conte,p&ated in Section (7.8 o$ RA (2)*, as a,ended.
Moreover, t!e Co'rt ta:es note o$ t!e ad,ission ,ade .# t!e prosec'tion in its Me,orand', t!at t!e
transaction invo&vin% Mar: Ci,eneJ/s e9ec'tion o$ a$$idavits $or !is ad,ission to t!e =PP is not #et a
per$ected contract .et"een t!e Govern,ent and Mar: Ci,eneJ since it is sti&& in its qne%otiation p!aser
.eca'se o$ t!e re$'sa& o$ Mar: Ci,eneJ to e9ec'te t!e a$$idavits a%ainst certain individ'a&s. T!is
ad,ission is anot!er indication t!at t!ere is indeed no contract or transaction to spea: o$ t!at is covered
'nder t!e $o'rt! e&e,ent o$ t!e o$$ense o$ vio&ation o$ Section (7.8 o$ RA (2)*.
Fina&&#, it ,a# .e ar%'ed t!at "!i&e t!e ,ateria& a&&e%ations in t!e s'.5ect in$or,ation ,a# not constit'te
t!e o$$ense o$ vio&ation o$ Section (7.8 o$ RA (2)*, as a,ended, t!e sa,e ,ateria&O$act'a& a&&e%ations
nevert!e&ess constit'te @irect 6ri.er# or anot!er $e&on# "!ic! is necessari&# inc&'ded in t!e o$$ense
c!ar%ed !erein so t!at t!e s'.5ect in$or,ation in t!is case s!o'&d not .e <'as!ed. It is .e&ieved, !o"ever,
t!at t!e $i&in% o$ t!e In$or,ation c!ar%in% t!e acc'sed "it! Ro..er# in S6G2+GCRMG223;; pendin%
.e$ore t!e Second @ivision o$ t!is Co'rt on t!e .asis o$ t!e sa,e acts co,p&ained o$ in t!is case,
constit'tes a .ar a%ainst t!e in$or,ation $or said &esser $e&on# as it "o'&d res'&t into t"o di$$erent&#
c!ar%ed $e&onies $ro, a sin%&e act and t!'s, "o'&d 'nnecessari&# or 'n5'sti$ia.&# e9pose t!e acc'sed to
t!e dan%er o$ s'$$erin% t"o pena&ties $or a sin%&e o$$ense i$ t!e s'.5ect in$or,ation is not <'as!ed. I$ a
sin%&e act res'&ts into t"o or ,ore o$$enses, t!e# s!o'&d not .e c!ar%ed andOor p'nis!ed separate&#
'n&ess t!e ot!er o$$ense "it! di$$erent e&e,ents is pena&iJed 'nder a specia& &a". To do so "o'&d vio&ate, i$
not t!e princip&e o$ do'.&e 5eopard#, t!e r'&e a%ainst sp&ittin% a sin%&e act into vario's c!ar%es. It is sett&ed
t!at a de$endant s!o'&d not .e !arassed "it! vario's prosec'tions 'pon t!e sa,e act .# sp&ittin% t!e
sa,e into vario's c!ar%es, a&& e,anatin% $ro, t!e sa,e &a" vio&ated, "!en t!e prosec'tion co'&d easi&#
and "e&& e,.od# t!e, in a sin%&e in$or,ation .eca'se s'c! sp&ittin% o$ t!e action "o'&d "or:
'nnecessar# inconvenience to t!e ad,inistration o$ 5'stice in %enera& and to t!e acc'sed in partic'&ar, $or
it "o'&d re<'ire t!e presentation o$ s'.stantia&&# t!e sa,e evidence .e$ore di$$erent co'rts.
A&& to&d, "it! t!e a.sence o$ t!e $o'rt! e&e,ent, t!e Co'rt $inds t!at t!e $act'a&O,ateria& a&&e%ations in t!e
s'.5ect In$or,ation do not constit'te t!e o$$ense o$ vio&ation o$ Section (7.8 o$ RA (2)*, as a,ended, and
t!ere$ore, It is constrained to <'as! t!e said In$or,ation. In t!is re%ard, t!e Co'rt dee,s it 'nnecessar# to
disc'ssOreso&ve t!e ot!er iss'es raised in t!e s'.5ect ,otions $or reconsideration o$ t!e !erein acc'sed
andOor dist'r. t!e ot!er $indin%s contained in t!e Reso&'tion so'%!t to .e reconsidered.
=HEREFORE, t!e instant Motions $or Reconsideration o$ t!e !erein acc'sed are reso&ved accordin%&#
and t!e s'.5ect In$or,ation $or vio&ation o$ Section (7.8 o$ R.A. (2)*, as a,ended, is !ere.# AUASHE@.
SO OR@ERE@.
T!e State ,oved $or t!e reconsideration o$ t!e reso&'tion <'as!in% t!e in$or,ation in Cri,ina& Case No.
S6G2+GCRMG23;0.
@'rin% t!e pendenc# o$ t!e State/s ,otion $or reconsideration, Cri,ina& Case No. S6G2+GCRMG23;0 "as
reGra$$&ed to t!e T!ird @ivision o$ t!e Sandi%an.a#an.
On Apri& 3), 322*, t!e T!ird @ivision denied t!e O,.'ds,an/s ,otion $or reconsideration,;2 !o&din%
t!'s&#c!anRo.&esvirt'a&La"&i.rar#
9 9 9
T!e core iss'e raised in t!e s'.,ission o$ t!e parties re&ates to t!e ,eanin% o$ t!e "ord qtransactionr as it
is 'sed in Sec. ( 7.8 o$ RA (2)* to constit'te an e&e,ent o$ t!e o$$ense. More partic'&ar&#, !as t!e
,eanin% o$ t!e ter, qtransactionr as en'nciated in t!e Soriano case .een ,odi$ied .# s'.se<'ent r'&in%s
o$ t!e S'pre,e Co'rtR
T!e ,eanin% o$ qtransactionr in Sec. ( 7.8 o$ RA (2)* "as en'nciated in t!e Soriano case "!en t!e
S'pre,e Co'rt statedc!anRo.&esvirt'a&La"&i.rar#
As stated a.ove, t!e principa& iss'e is "!et!er or not t!e investi%ation cond'cted .# t!e petitioner can .e
re%arded as a qcontract or transactionr "it!in t!e p'rvie" o$ Sec. ( 7.8 o$ R.A. No. (2)*. On t!is iss'e t!e
petition is !i%!&# i,pressed "it! ,erit.
T!e a$oreG,entioned provision reads as $o&&o"s
SEC. (. Corr'pt practices o$ p'.&ic o$$icers. In addition to acts or o,issions o$ p'.&ic o$$icers a&read#
pena&iJed .# e9istin% &a", t!e $o&&o"in% s!a&& constit'te corr'pt practices o$ an# p'.&ic o$$icer and are
!ere.# dec&ared to .e 'n&a"$'&c!anRo.&esvirt'a&La"&i.rar#
7a8
a

7.8
@irect&# or indirect&# re<'estin% or receivin% an# %i$t, present, s!are, percenta%e, or .ene$it, $or !i,se&$ or
$or an# ot!er person, in connection "it! an# contract or transaction .et"een t!e Govern,ent and an#
ot!er part#, "!erein t!e p'.&ic o$$icer in !is o$$icia& capacit# !as to intervene 'nder t!e &a".
T!e petitioner states
Ass',in% in %ratia ar%',enti, petitioner/s %'i&t, t!e $acts ,a:e o't a case o$ @irect 6ri.er# de$ined and
pena&iJed 'nder t!e provision o$ Artic&e 3)2 o$ t!e Revised Pena& Code and not a vio&ation o$ Section (,
s'.para%rap! 7.8 o$ Rep. Act (2)*, as a,ended.
T!e evidence $or t!e prosec'tion c&ear&# and 'ndo'.ted&# s'pport, i$ at a&& t!e o$$ense o$ @irect 6ri.er#,
"!ic! is not t!e o$$ense c!ar%ed and is not &i:e"ise inc&'ded in or is necessari&# inc&'ded in t!e o$$ense
c!ar%ed, "!ic! is $or vio&ation o$ Section (, s'.para%rap! 7.8 o$ Rep. Act (2)*, as a,ended. T!e
prosec'tion s!o"ed t!at t!e acc'sed is a p'.&ic o$$icerD in consideration o$ P4,222.22 "!ic! "as
a&&e%ed&# so&icited, P3,222.22 o$ "!ic! "as a&&e%ed&# received, t!e petitioner 'ndertoo: or pro,ised to
dis,iss a cri,ina& co,p&aint pendin% pre&i,inar# investi%ation .e$ore !i,, "!ic! ,a# or ,a# not
constit'te a cri,eD t!at t!e act o$ dis,issin% t!e cri,ina& co,p&aint pendin% .e$ore petitioner "as re&ated
to t!e e9ercise o$ t!e $'nction o$ !is o$$ice. T!ere$ore, it is "it! pristine c&arit# t!at t!e o$$ense proved, i$ at
a&& is @irect 6ri.er#. 7Petition, p. 0.8
Upon t!e ot!er !and, t!e respondents c&ai,
A readin% o$ t!e a.oveG<'oted provision "o'&d s!o" t!at t!e ter, htransaction/ as 'sed t!ereo$ is not
&i,ited in its scope or ,eanin% to a co,,ercia& or .'siness transaction .'t inc&'des a&& :inds o$
transaction, "!et!er co,,ercia&, civi& or ad,inistrative in nat're, pendin% "it! t!e %overn,ent. T!is ,'st
.e so, ot!er"ise, t!e Act "o'&d !ave so stated in t!e q@e$inition o$ Ter,sr, Section 3 t!ereo$. 6't it did
not, per$orce &eavin% no ot!er interpretation t!an t!at t!e e9pressed p'rpose and o.5ect is to e,.race a&&
:inds o$ transaction .et"een t!e %overn,ent and ot!er part# "!erein t!e p'.&ic o$$icer "o'&d intervene
'nder t!e &a". 7Co,,ent, p. +.8
It is o.vio's t!at t!e investi%ation cond'cted .# t!e petitioner "as not a contract. Neit!er "as it a
transaction .eca'se t!is ter, ,'st .e constr'ed as ana&o%o's to t!e ter, "!ic! precedes it. A
transaction, &i:e a contract, is one "!ic! invo&ves so,e consideration as in credit transactions and t!is
e&e,ent 7consideration8 is a.sent in t!e investi%ation cond'cted .# t!e petitioner. 7E,p!asis
S'pp&ied8c!anro.&esvirt'a&a"&i.rar#
T!e ar%',ent o$ t!e Prosec'tion t!at t!e interpretation o$ t!e ter, qtransactionr de$ined in t!e Soriano
case !as .een ,odi$ied .# t!e Me5ia, Pe&e%rino and C!an% cases does not pers'ade.
A revie" o$ t!e Me5ia, Pe&i%rino and C!an% cases revea&s t!at t!e ,ain iss'e ad5'dicated in t!ose cases
invo&ved an interpretation o$ t!e e&e,ent o$ Sec. ( 7.8 o$ RA (2)*, na,e&# t!e ri%!t to intervene o$ t!e
p'.&ic o$$icer in t!e contract or transaction and not t!e e&e,ent o$ "!at is a contract or transaction "it! t!e
%overn,ent.
T!'s, in t!e Me5ia case, t!e S'pre,e Co'rt r'&edc!anRo.&esvirt'a&La"&i.rar#
Under t!e si9t! assi%ned error petitioner a&&e%es t!at s!e does not intervene in t!e settin% o$ t!e !earin%
o$ cases and s!e does not $or,'&ate reso&'tions t!ereo$. T!e .ranc! c&er: o$ co'rt is t!e ad,inistrative
assistant o$ t!e presidin% 5'd%e "!ose d't# is to assist in t!e ,ana%e,ent o$ t!e ca&endar o$ t!e co'rt
and in a&& ot!er ,atters not invo&vin% t!e e9ercise o$ discretion or 5'd%,ent o$ t!e 5'd%e. It is t!is specia&
re&ation o$ t!e petitioner "it! t!e 5'd%e "!o pres',a.&# !as reposed con$idence in !er "!ic! appears to
!ave .een ta:en advanta%e o$ .# t!e petitioner in pers'adin% t!e co,p&ainants to %ive !er ,one# in
consideration o$ a pro,ise to %et a $avora.&e reso&'tion o$ t!eir cases.
In t!e Pe&i%rino case, t!e S'pre,e Co'rt r'&edc!anRo.&esvirt'a&La"&i.rar#
Petitioner is a 6IR E9a,iner assi%ned to t!e Specia& Pro5ect Co,,ittee tas:ed q999 to 'nderta:e
veri$ication o$ ta9 &ia.i&ities o$ vario's pro$essiona&s partic'&ar&# doctors "it!in t!e 5'risdiction o$ Reven'e
Re%ion 4GA, Mani&a 999r
Since t!e s'.5ect transaction invo&ved t!e reassess,ent o$ ta9es d'e $ro, private co,p&ainant, t!e ri%!t
o$ petitioner to intervene in !is o$$icia& capacit# is 'ndisp'ted. T!ere$ore, e&e,ents 7)8, 748 and 708 o$ t!e
o$$ense are present. 7E,p!asis S'pp&ied8
In t!e C!an% case, t!e S'pre,e Co'rt r'&edc!anRo.&esvirt'a&La"&i.rar#
San Mateo/s 5'sti$ication .e!ind s'c! re$'sa&G t!at !e !ad no a't!orit# to accept an a,o'nt &ess t!an t!e
assess,ent a,o'ntG is too s!a&&o" to ,erit .e&ie$, !e .ein% t!e C!ie$ Operations, 6'siness Reven'e
E9a,ination, A'dit @ivision o$ t!e Treas'rer/s O$$ice, "!o !ad, on t!ose vario's ,eetin%s, %one o't o$ !is
"a# to ne%otiate t!e sett&e,ent o$ t!e assessed de$icienc# ta9.
In t!e recent case o$ Merenci&&o vs. Peop&e, t!e S'pre,e Co'rt identi$ied t!e iss'es raised in t!e Petition
as $o&&o"s 7)8 t!e Sandi%an.a#an/s re$'sa& to .e&ieve petitioner/s evidence over t!at o$ t!e prosec'tion
and 738 t!e Sandi%an.a#an/s $ai&'re to reco%niJe t!at Petitioner "as p&aced in do'.&e 5eopard#.
In addressin% t!e second iss'e, t!e S'pre,e Co'rt r'&edc!anRo.&esvirt'a&La"&i.rar#
C&ear&#, t!e vio&ation o$ Section (7.8 o$ RA (2)* is neit!er identica& nor necessari&# inc&'sive o$ direct
.ri.er#. =!i&e t!e# !ave co,,on e&e,ents, not a&& t!e essentia& e&e,ents o$ one o$$ense are inc&'ded
a,on% or $or, part o$ t!ose en',erated in t!e ot!er. =!ereas t!e ,ere re<'est or de,and o$ a %i$t,
present, s!are, percenta%e or .ene$it is eno'%! to constit'te a vio&ation o$ Section (7.8 o$ RA (2)*,
acceptance o$ a pro,ise or o$$er or receipt o$ a %i$t or present is re<'ired in direct .ri.er#. Moreover, t!e
a,.it o$ Section (7.8 o$ RA (2)* is speci$ic. It is &i,ited on&# to contracts or transactions invo&vin%
,onetar# consideration "!ere t!e p'.&ic o$$icer !as t!e a't!orit# to intervene 'nder t!e &a". @irect
.ri.er#, on t!e ot!er !and, !as a "ider and ,ore %enera& scope 7a8 per$or,ance o$ an act constit'tin% a
cri,eD 7.8 e9ec'tion o$ an 'n5'st act "!ic! does not constit'te a cri,e and 7c8 a%reein% to re$rain or
re$rainin% $ro, doin% an act "!ic! is !is o$$icia& d't# to do. A&t!o'%! t!e t"o c!ar%es a%ainst petitioner
ste,,ed $ro, t!e sa,e transaction, t!e sa,e act %ave rise to t"o separate and distinct o$$enses. No
do'.&e 5eopard# attac!ed since t!ere "as a variance .et"een t!e e&e,ents o$ t!e o$$enses c!ar%ed. T!e
constit'tiona& protection a%ainst do'.&e 5eopard# proceeds $ro, a second prosec'tion $or t!e sa,e
o$$ense, not $or a di$$erent one. 7E,p!asis S'pp&ied8c!anro.&esvirt'a&a"&i.rar#
Prosec'tion/s ar%',ent t!at t!e state,ent o$ t!e S'pre,e Co'rt a.oveG<'oted is an o.iter dict', is
specio's.
An o.iter dict', is a q5'dicia& co,,ent ,ade "!i&e de&iverin% a 5'dicia& opinion, .'t one t!at is
'nnecessar# to t!e decision in t!e case and t!ere$ore not precedentia& 7a&t!o'%! it ,a# .e considered
pers'asive8.r In t!e Merenci&&o case, one iss'e raised .# Petitioner "as precise&# t!e iss'e o$ do'.&e
5eopard# "!ic! t!e S'pre,e Co'rt reso&ved .# distin%'is!in% t!e e&e,ents o$ vio&ation o$ Sec. ( 7.8 o$ RA
(2)* and @irect 6ri.er#. As one o$ t!e e&e,ents o$ t!e o$$ense o$ vio&ation o$ Sec. ( 7.8 o$ RA (2)*, t!e
Co'rt adopted t!e ,eanin% %iven to t!e ter, qtransactionr in t!e Soriano case. T!e a.oveG<'oted
reso&'tion "as not a ,ere o.iter dict', .'t t!e ratio decidendi "!ic! is de$ined
asc!anRo.&esvirt'a&La"&i.rar#
q). t!e princip&e or r'&e o$ &a" on "!ic! a co'rt/s decision is $o'ndedD 3. T!e r'&e o$ &a" on "!ic! a &ater
co'rt t!in:s t!at a previo's co'rt $o'nded its decision 99r
T!e Prosec'tion ar%'ed t!at it is a ,a9i, in stat'tor# constr'ction t!at a &a" ,'st .e read in its entiret#
and no sin%&e provision s!o'&d .e interpreted in iso&ation "it! respect to t!e ot!er provisions o$ t!e &a".
T!e Prosec'tion $'rt!er ar%'ed t!at a c&ose e9a,ination o$ RA (2)* in its entiret# "o'&d s!o" t!at t!e
ter, qtransactionr appears severa& ti,es and "as never con$ined to transactions invo&vin% ,onetar#
consideration. S'$$ice it to sa# t!at a ,a9i, in stat'tor# constr'ction cannot .e s'perior to an e9press
interpretation o$ t!e &a" ,ade .# t!e S'pre,e Co'rt. F'rt!er,ore, t!e provisions in RA (2)* cited .#
Prosec'tion constit'te di$$erent o$$enses "it! t!eir o"n di$$erent e&e,ents, "it! t!eir o"n di$$erent
,oda&ities o$ co,,ission.
T!e re$erence to t!e Con%ressiona& record .# t!e Prosec'tion does not disprove t!e $act t!at $or vio&ation
o$ Sec. ( 7.8 o$ RA (2)*, t!e transaction ,'st invo&ve ,onetar# consideration. As pointed o't ear&ier, no
&ess t!an t!e S'pre,e Co'rt !as interpreted t!e ,eanin% o$ t!e ter, qtransactionr as an e&e,ent o$
vio&ation o$ t!e said section. Li:e"ise, as ad,itted .# t!e Prosec'tion, t!e re$erence to t!e de&i.erations o$
Con%ress "!ic! it cited invo&ved de&i.erations on Sec. 0 o$ RA (2)* and not on Sec. ( 7.8 o$ RA (2)*.
T!e t"o sections, i.e. Sec. 0 and Sec. ( 7.8 o$ RA (2)* are di$$erent o$$enses "it! t!eir o"n di$$erent
e&e,ents.
Havin% reso&ved t!e core iss'e in t!e Motion For Reconsideration o$ t!e Prosec'tion, t!ere is no $'rt!er
need to disc'ss t!e ot!er ar%',ents o$ t!e Prosec'tion in its Motion.
=HEREFORE, Prosec'tion/s Motion $or Reconsideration o$ t!e Reso&'tion o$ t!e First @ivision dated
Nove,.er )(, 322+ is @ENIE@.
SO OR@ERE@.
On C'ne 33, 322*, t!e O$$ice o$ t!e Specia& Prosec'tor 7OSP8 assai&ed in t!is Co'rt via petition $or
certiorari t!e reso&'tion o$ t!e Sandi%an.a#an pro,'&%ated on C'&# )-, 322+ <'as!in% t!e in$or,ation in
Cri,ina& Case No. S6G2+GCRMG23;0 and t!e reso&'tion pro,'&%ated on Apri& 3), 322* den#in% t!e
State/s ,otion $or reconsideration.
On Nove,.er )+, 322*, t!e Co'rt denied t!e PereJes/ 'r%ent ,otion $or &eave to $i&e a ,otion to dis,iss
$or .ein% a pro!i.ited p&eadin%, and instead re<'ired t!e respondents to co,,ent on t!e petition, a,on%
ot!er t!in%s.;)
Cri,ina& Case S6G2+GCRMG23;;
ERo..er# 'nder Art. 3*(, in re&ation to Art. 3*4, Revised Pena& CodeF
T!e in$or,ation c!ar%in% ro..er# 'nder Artic&e 3*(, in re&ation to Artic&e 3*4, Revised Pena& Code "as
ra$$&ed to t!e Second @ivision 7Cri,ina& Case No. S6G2+GCRMG23;;8.;3
On Ma# ;, 322+, Esca&er $i&ed a ,otion to <'as! e9 a.'ndanti ad ca'te&a,, a&&e%in% t!at t!e $acts c!ar%ed
did not constit'te an o$$ense.;( On Ma# 3, 322+, t!e PereJes $i&ed t!eir o"n ,otion to <'as! t!e
in$or,ation.;4 On Ma# ;, 322+, Arceo $i&ed an e9 parte ,otion to adopt t!e PereJes ,otion as "e&& as
Esca&er/s ,otion to <'as!.;0
On C'ne 3;, 322+, t!e Second @ivision o$ t!e Sandi%an.a#an denied t!e respective ,otions to <'as! o$
respondents.;;
On C'ne (2, 322+, Esca&er ,oved to reconsider t!e denia&.;- On C'&# )2, 322+, Arceo a&so ,oved to
reconsider t!e denia&.;+ T!e PereJes $i&ed t!eir o"n ,otion $or reconsideration on C'&# )), 322+.;*
On Nove,.er 32, 322+, t!e Second @ivision o$ t!e Sandi%an.a#an %ranted t!e ,otions $or
reconsideration, <'as!ed t!e in$or,ation c!ar%in% respondents "it! ro..er#, and dis,issed Cri,ina&
Case No. S6G2+GCRMG23;;,-2 !o&din% as $o&&o"sc!anRo.&esvirt'a&La"&i.rar#
9 9 9
T!e Co'rt a$ter a care$'& per'sa& o$ t!e iss'e and t!e record on !and, is pers'aded. E9tant in t!e record
and "!ic! t!e prosec'tion ad,its or at &east does not den# are t!e $o&&o"in%c!anRo.&esvirt'a&La"&i.rar#
T!e a&&e%ed Ro..er# 7e9tortion8 "as co,,itted on Fe.r'ar# )(, 322) 7Coint Reso&'tion si%ned .#
,e,.ers o$ t!e Specia& Pane& co,posed o$ Or&ando Ines, Adoracion A%.ada, Mar# S'san Geroni,o,
Cose de Ces's Cr., si%ned .# Asst. O,.'ds,an Pe&a%io Aposto&, and approved .# O,.'ds,an Mr. 7sic8
Merceditas N. G'tierreJ.8 7pp. 4G;*, Io&. ), RecordsD pp. -2G++, Co,p&aintGA$$idavit o$ Mar: Ci,eneJ,
Io&. ), Records8
On Fe.r'ar# 3(, 322) t!e a,o'nt o$ US u),***,*;0.22 "as trans$erred to Co'tts 6an: Hon%:on% in
$avo'r o$ t!e .ene$iciar# o$ Acco'nt No. HO )(-2;, $ro, Trade and Co,,erce 6an:, Ca#,an Is&and
t!ro'%! t!e C!ase Man!attan 6an: in Ne" Bor:. S'.se<'ent&# $ro, Marc! ;, 322) to Ma# 3(, 322)
$'nds "ere trans$erred $ro, Co'tts 6an: to ot!er acco'nts, a,on% t!e, a u302,222.22 .an:
dra$tOc!e<'e iss'ed to Ra,on C. Arceo 7pp. )2G)) Records8.
On @ece,.er 3(, 3223 Con%ress,an Mar: Ci,eneJ $i&ed !is co,p&aint "it! t!e O,.'ds,an c!ar%in%
Hernando PereJ, Ernest Esca&er, Ra,on Arceo and severa& Co!n @oes 7Mrs. Rosario PereJ "as not
a,on% t!ose c!ar%ed8 "it! cri,ina& o$$enses o$ P&'nder, E9tortion, Gra$t and Corr'ption, O.str'ction o$
C'stice, Iio&ation o$ t!e Pena& Provision o$ t!e Code o$ Cond'ct and Et!ica& Standards R.A. ;-)(, and
Ad,inistrative O$$enses o$ @is!onest#, Grave Miscond'ct, Oppression, Co,,ittin% acts P'nis!a.&e 'nder
t!e AntiGGra$t La", Cond'ct Pre5'dicia& to t!e 6est Interest o$ t!e service, and Iio&ation o$ Section 0 738 o$
R.A. ;-)(. It "as s'.scri.ed and s"orn to on 7t!e 8 3(rd da# o$ @ece,.er 3223 7Co,p&aintGA$$idavit o$
Mario Mar: 7MC8 Ci,eneJ 6. Crespo G pp. -2G++ Records8.
On @ece,.er 3(, 3223, t!e FIRO 7Fact Findin% and Inte&&i%ence Researc! O$$ice8 reco,,ended t!at t!e
case .e re$erred to t!e Eva&'ation and Pre&i,inar# Investi%ation 6'rea' and t!e Ad,inistrative
Ad5'dication 6'rea' 7p. ; o$ t!e Records8
T!e in$or,ation "as $i&ed "it! t!is Co'rt on&# on Apri& )+, 322+.
Havin% esta.&is!ed, or at &east as c&ai,ed .# Co,p&ainant Mar: Ci,eneJ, t!at t!e Ro..er# 7e9tortion8
too: p&ace on Fe.r'ar# )(, 322), t!e O,.'ds,an s!o'&d !ave de,anded a reasona.&e e9p&anation $ro,
t!e co,p&ainant "!o "as t!en a Con%ress,an, "ea&t!# and in$&'entia& and in "!ose !o'se t!e a&&e%ed
inti,idation too: p&ace, "!# !e "as $i&in% t!e co,p&aint on&# on @ece,.er 3(, 3223 a ,atter o$ ,ore t!an
ei%!teen 7)+8 ,ont!s. T!is s!o'&d !ave ca'tioned t!e O,.'ds,an as to t!e possi.&e ,otive in $i&in% t!e
co,p&aint.
At an# rate, t!e Fie&d Investi%ation O$$ice 7FIO8 o$ t!e o$$ice o$ t!e O,.'ds,an as no,ina& co,p&ainant
$i&ed a co,p&aint "it! t!e O,.'ds,an on Nove,.er )4, 3220 c!ar%in% Hernando 6enito PereJ, Rosario
Sa&vador PereJ, Ernest L. Esca&er, Ra,on Antonio C. Arceo Cr. and Co!n @oes "it! Iio&ation o$ Sec. (7.8
R.A. (2)*, Sec. + in re&ation to Sec. )) o$ R.A. ;-)(, Per5'r# 7Art. )+( RPC8 and Art. )-) par. 4
Fa&si$ication, RPC and vio&ation o$ R.A. )(-*. 7Pp. )(3 to )-2 o$ Records8 Ro..er# is NOT one o$ t!e
c!ar%es.
=it! t!e O,.'ds,an/s $indin% t!at t!e e9tortion 7inti,idation8 "as perpetrated on Fe.r'ar# )(, 322) and
t!at t!ere "as trans$er o$ Mar: Ci,eneJ US u),***,*;0.22 to Co'tts 6an: Acco'nt HO )((-2; on
Fe.r'ar# 3(, 322) in $avo'r o$ t!e acc'sed, t!ere is no reason "!# "it!in a reasona.&e period $ro, t!ese
dates, t!e co,p&aint s!o'&d not .e reso&ved. T!e act o$ inti,idation "as t!ere, t!e asportation "as
co,p&ete as o$ Fe.r'ar# 3(, 322) "!# "as t!e in$or,ation $i&ed on&# on Apri& )+, 322+. For s'c! a si,p&e
c!ar%e o$ Ro..er# t!ere is not!in% ,ore to consider and a&& t!e $acts and circ',stances 'pon "!ic! to
anc!or a reso&'tion "!et!er to %ive d'e co'rse to t!e co,p&aint or to dis,iss it are on !and. T!e case is
,ore t!an ripe $or reso&'tion. Fai&'re to act on t!e sa,e is a c&ear trans%ression o$ t!e constit'tiona& ri%!ts
o$ t!e acc'sed. A !ea&t!# respect $or t!e constit'tiona& prero%ative o$ t!e acc'sed s!o'&d !ave prodded
t!e O,.'ds,an to act "it!in a reasona.&e ti,e.
T!e &on% "ait o$ t!e acc'sed is "it!o't va&id ca'se or 5'sti$ia.&e ,otive and !as 'nnecessari&# tra,p&ed
'pon t!eir constit'tiona& prero%atives to a speed# disposition o$ t!e case. T!is is an i,per,issi.&e co'rse
o$ action t!at o'r $'nda,enta& &a" &oat!es.
As C'stice La're& said, t!e %overn,ent s!o'&d .e t!e &ast to set an e9a,p&e o$ de&a# and oppression in
t!e ad,inistration o$ 5'stice. It is t!e ,ora& and &e%a& o.&i%ation o$ t!e Co'rt to see t!at cri,ina&
proceedin%s co,e to an end 7Peop&e vs. Ca&a,.a ;( P!i& 4*;8.
T!e Constit'tion o$ t!e P!i&ippines provides
Art. ( Sec. ); A&& persons s!a&& !ave a ri%!t to a speed# disposition o$ t!eir cases .e$ore a&& 5'dicia&7,8
<'asiG5'dicia& or ad,inistrative .odies.
T!'s 'nder o'r present $'nda,enta& &a", a&& persons are entit&ed to a speed# reso&'tion o$ t!eir cases .e
it civi&, ad,inistrative or cri,ina& cases. It is, in cri,ina& cases !o"ever "!ere t!e need to a speed#
disposition o$ t!eir cases is ,ore prono'nced. It is so, .eca'se in cri,ina& cases, it is not on&# t!e !onor
and rep'tation .'t even t!e &i.ert# o$ t!e acc'sed 7even &i$e itse&$ .e$ore t!e enact,ent o$ R.A. *(4;8 is at
sta:e.
T!e c!ar%e is a si,p&e case $or Ro..er#. Certain&# it does not invo&ve co,p&icated and $act'a& iss'es t!at
"o'&d necessitate painsta:in% and %r'e&&in% scr'tin# and per'sa& on t!e part o$ t!e O,.'ds,an. It ,a#
!ave its nove&, and to it, va&id reason $or departin% $ro, t!e esta.&is!ed proced're and r'&es, .'t virt'a&&#
in doin% so, it !as $ai&ed to disc!ar%e its d't# as ,andated .# t!e Constit'tion to pro,pt&# act on
co,p&aints $i&ed in an# $or, or ,anner a%ainst p'.&ic o$$icers and e,p&o#ees.
T!e tota&it# o$ t!e $acts and t!e s'rro'ndin% circ',stances .ears 'n,ista:a.&# t!e ear,ar:s o$ inordinate
de&a#, ,a:in% t!e app&ica.i&it# o$ t!e doctrine en'nciated in Anc!an%co Cr. and @'terte cases cited in t!e
parties/ p&eadin%s irre$ra%a.&e.
Accordin%&#, t!ere .ein% a c&ear vio&ation o$ t!e constit'tiona& ri%!t o$ t!e acc'sed, t!e prosec'tion is
o'sted o$ an# a't!orit# to $i&e t!e in$or,ation and "e !ere.# order t!e <'as!in% o$ t!e in$or,ation and t!e
conse<'ent dis,issa& o$ t!is case.
=!i&e t!e %ro'nd 'pon "!ic! t!e Co'rt .an:ed and re&ied t!is dis,issa& order "as not invo:ed in t!e
,otions $or reconsideration o$ acc'sed Esca&er and Arceo, since t!e# are si,i&ar&# sit'ated "it! t!eir coG
acc'sed spo'ses PereJ, t!is reso&'tion app&ies to t!e, "it! e<'a& $orce and e$$ect.
On t!e .asis o$ t!e $ore%oin% dis<'isition, =e !ere.# consider t!e Motion $or Reconsideration o$ o'r
reso&'tion den#in% t!e ,otion $or conso&idation ,oot and acade,icD even as, =e r'&e t!at t!e said ,otion
&ac:s pers'asiveness considerin% t!at, per Mani$estation o$ acc'sed Esca&er !e is not in an# "a# a part#
to a&& t!e cases pendin%, t!e acc'sed in eac! o$ t!e cases "ere c!ar%ed "it! di$$erent o$$enses, and t!e
di$$erent cases are a&read# at di$$erent sta%es o$ t!e proceedin%s, and considerin% t!e ar%',ent o$ t!e
prosec'tion t!at t!e di$$erent o$$enses in t!e $o'r 748 cases consist o$ di$$erent e&e,ents necessitatin%
presentation o$ di$$erent proo$s and evidence $or eac! case.
Acc'sed/7s8 .onds are ordered cance&&ed and t!e Ho&dG@epart're Order iss'ed a%ainst t!e, in t!is case
is &i$ted and set aside.
So ordered.
T!e State ,oved to reconsider t!e reso&'tion o$ Nove,.er 32, 322+,-) .'t t!e Second @ivision o$ t!e
Sandi%an.a#an denied t!e ,otion $or reconsideration on C'ne )*, 322*,-3 statin%
t!'s&#c!anRo.&esvirt'a&La"&i.rar#
T!is reso&ves t!e Motion $or Reconsideration o$ t!e Peop&e o$ t!e P!i&ippines dated @ece,.er +, 322+
see:in% to reconsider t!e Reso&'tion o$ t!is Co'rt pro,'&%ated on Nove,.er 32, 322+ dis,issin% t!e
case, as "e&& as acc'sedGspo'ses PereJ Opposition dated @ece,.er 33, 322+, acc'sed Arceo/s
Co,,entOOpposition o$ even date, and t!e Opposition dated Can'ar# 0, 322* o$ acc'sed Ernest L.
Esca&er.
On record too, are t!e P&ainti$$/s Conso&idated Rep&# dated Can'ar# )*, 322* to t!e t!ree 7(8
OppositionOCo,,ent o$ t!e acc'sed, t!e t!ree 7(8 Re5oinders o$ t!e acc'sed o$ di$$erent dates, t!e
p&ainti$$/s s'.Gre5oinder dated Fe.r'ar# *, 322*, acc'sed PereJes7/ 8 Mani$estation and P&ainti$$/s
Co,,ent dated Fe.r'ar# );, 322* to PereJes7/ 8 Mani$estation.
A&& t!ese s!a&& .e considered and ta:en 'p .# t!e Co'rt in seriati,.
T!e $irst iss'e .ro'%!t 'p .# t!e acc'sed is a s'pposed proced'ra& &apse o$ t!e p&ainti$$/s ,otion $or
reconsideration in t!at t!e sa,e "as $i&ed in vio&ation o$ Sec. 4 R'&e )0 o$ t!e R'&es o$ Co'rt "!ic!
provides in s'.stance t!at in ever# "ritten ,otion re<'ired to .e !eard, t!e notice o$ !earin% t!ereo$ s!a&&
.e served in s'c! a ,anner as to ens're its receipt .# t!e ot!er part# at &east t!ree 7(8 da#s .e$ore t!e
date o$ !earin%.
O$ co'rse, it is not disp'ted t!at t!e acc'sedGspo'ses received t!ro'%! re%istered ,ai& t!eir cop# o$
p&ainti$$/s ,otion on&# on @ece,.er );, 322+ "!i&e it set t!e date o$ !earin% on @ece,.er )3, 322- t!'s
t!e ,otion "as set $or !earin% .e$ore t!e ot!er part# received it. Acc'sed Ra,on Arceo received !is cop#
o$ t!e ,otion on&# on @ece,.er )-, 322+ "!i&e acc'sed Ernest Esca&er received !is cop# a$ter @ece,.er
)+, 322+ %ivin% t!e sa,e sit'ation as acc'sed PereJes. It ,'st .e ta:en note o$ t!at t!e Co'rt set t!e
!earin% o$ t!e p&ainti$$/s ,otion on @ece,.er )+, 322+, as on @ece,.er )3, 322+ t!e date speci$ied on
p&ainti$$/s ,otion, no acc'sed !as received !is cop# o$ t!e said ,otion.
Considerin% t!'s, t!e sit'ation, t!ere see,s p&a'si.i&it# $or t!e acc'sed c&ai, o$ trans%ression o$ t!e
a$orecited provision o$ t!e R'&es o$ Co'rt.
Nonet!e&ess, considerin% t!e trans$er o$ t!e date o$ !earin%, and t!at a&& t!e parties "ere %iven a,p&e ti,e
to $i&e and s'.,it t!eir respective p&eadin%s "!ic! at t!e ti,e t!e iss'e "as to .e reso&ved !ad %ro"n
vo&',ino's, t!e Co'rt is not inc&ined to %ive d'e consideration $or t!is proced'ra& i,propriet#.
T!e Co'rt ta:es note !o"ever t!at t!e p&ainti$$/s ,otion $or reconsideration "as $i&ed on&# on @ece,.er +,
322+ .e#ond t!e $i$teent! da# period "it!in "!ic! it s!o'&d .e $i&ed, since it received a cop# o$ t!e
Reso&'tion o$ t!is Co'rt on Nove,.er 3), 322+. T!'s, t!e $i$teent! da# $e&& on @ece,.er ;, 322+ a$ter
"!ic! t!e said Reso&'tion !as .eco,e $ina& and e9ec'tor#. T!e Reso&'tion in <'estion t!ere$ore "!ic!
$ina&&# disposes o$ t!e case is not on&# $ina& .'t e9ec'tor# as "e&& "!ic! is virt'a&&# .e#ond t!e reac! o$ t!e
,otion $or reconsideration .e&ated&# $i&ed.
=e "i&& no" tac:&e t!e ,erits o$ t!e %ro'nds invo:ed .# t!e Peop&e.
T!e $irst %ro'nd cited in t!e Peop&e/s ,otion "as t!at t!e $i&in% o$ co,p&aint a%ainst $or,er secretar#
Hernando 6. PereJ "as not attended .# i&& ,otive since it reasoned o't t!at it "as t!e inti,ation o$ t!e
Co'rt "!en it stated in its Reso&'tion t!e O,.'ds,an 999 qs!o'&d !ave de,anded a reasona.&e
e9p&anation $ro, t!e co,p&ainant "!o "as t!en a con%ress,an, "ea&t!# and in$&'entia& and in "!ose
!o'se t!e a&&e%ed inti,idation too: p&ace, "!# !e "as $i&in% t!e co,p&aint on&# on @ece,.er 3(, 3223 a
,atter o$ ,ore t!an ei%!teen 7)+8 ,ont!s. T!is s!o'&d !ave ca'tioned t!e O,.'ds,an as to t!e possi.&e
,otive in $i&in% t!e co,p&aint. 999 q=e ta:e note o$ t!e response o$ t!e prosec'tion qCi,eneJ t!o'%!t t!at
a$ter t!e pa#Go$$, Secretar# PereJ "o'&d stop t!reatenin% !i, and "o'&d &eave !i, in peace $or %ood.
T!is "as t!e reason "!# Ci,eneJ did not i,,ediate&# $i&e a co,p&aint a%ainst Secretar# PereJ and !is
coGacc'sed.r
T!e $irst and $ore,ost i,pression =e can %at!er is t!at t!e a&&e%ed a.o't t"o ,i&&ion do&&ars "!ic!
s'pposed&# "as t!e res'&t o$ acc'sed PereJ/ a&&e%ed e9tortion "as de&ivered a&read# to t!e acc'sed. A&&
a&on% t!ere$ore, i$ t!e c&ai, o$ t!e prosec'tion is to .e .e&ieved, Ro..er# !as &on% .een co,,itted t!at
"as on or a.o't Fe.r'ar# 322) as a&&e%ed in t!e in$or,ation. =it! or "it!o't i&&G,otive, t!e O,.'ds,an
s!o'&d !ave acted "it!in a reasona.&e ti,e. Certain&# ei%!teen 7)+8 &on% ,ont!s $ro, t!e $i&in% o$ t!e
co,p&aint can not .e considered "it!in a reasona.&e ti,e.
T!e ,ovant t!en ar%'ed t!at t!e $i&in% o$ t!e in$or,ation on&# on Apri& )+, 322+ "ere d'e to &e%a&
i,pedi,ents "!ic! "ere .e#ond t!e contro& o$ t!e o$$ice o$ t!e O,.'ds,an.
T!e Co'rt can not 'nderstand t!ose a&&e%ed q&e%a& i,pedi,entsr in t!e prosec'tion $or Ro..er#. Here is
t!e prosec'tion c&ai,in% stron%&# t!at t!e $i&in% o$ t!e co,p&aint "as not attended .# i&&G,otive and t!at
a$ter t!e pa#Go$$ even i$ a cri,e !as .een co,,itted a%ainst co,p&aint Con%ress,an Mar: Ci,eneJ, t!e
&atter de&a#ed !is $i&in% o$ t!e co,p&aint .eca'se !e t!o'%!t t!e acc'sed "o'&d &eave !i, in peace. T!is is
t!e on&# i,pedi,ent "e can t!in: o$, and t!is de$inite&# is not a &e%a& i,pedi,entD certain&# too t!is is not
.e#ond t!e contro& o$ t!e O$$ice o$ t!e O,.'ds,an.
6't t!e Co'rt s!a&& :eep trac: o$ t!e ,ovant/s ar%',ent a.o't t!is s'pposed &e%a& i,pedi,ent. Ad,ittin%
t!at t!e asportation "as co,p&ete on Fe.r'ar# 3(, 322), t!e prosec'tion reasoned o't t!at t!e case can
not .e $i&ed in Co'rt at t!at ti,e d'e to ins'$$icienc# o$ evidence. As averred in t!e Opposition o$ acc'sed
Ernest Esca&er, q999 t!e p&ainti$$/s d't# is to deter,ine "!et!er t!ere e9ists pro.a.&e ca'se to !o&d t!e
acc'sed $or tria& $or si,p&e ro..er#r, and t!ose doc',ents "!ic! t!e prosec'tion so capita&iJed it e9erted
so ,'c! o$$er to o.tain, are ,ere evidentiar# ,atters. T!is is even ad,itted in t!e prosec'tion/s ,otion
$or reconsideration.
Consider t!ese $acts a&& e9p&icit&# ad,itted .# t!e prosec'tionc!anRo.&esvirt'a&La"&i.rar#
On Fe.r'ar# )(, 322) acc'sed $or,er C'stice Secretar# Hernando PereJ acco,panied .# acc'sed
Ernest Esca&er s'pposed&# t!reatened co,p&ainant Con%ress,an Mar: Ci,eneJ to send !i, to 5ai& "!ere
!e "i&& die o$ .oi& 7P'tan% ina ,o, sinasa&sa& ,o &an% a:o. Hindot :a. Ipa:':'&on% :ita sa A'eJon Cit# Cai&.
@oon ,a,a,ata# :a sa pi%sa8. On Fe.r'ar# 3(, 322) t!e a,o'nt o$ US u),***,*;0 o"ned .#
Con%ress,an Mar: Ci,eneJ "as trans$erred to Co'tts 6an:, Hon%:on% in $avo'r o$ Acco'nt N',.er
)(-2; in t!e na,e o$ Ernest Esca&er 7con$ir,ed .# Trade and Co,,erce 6an: Pa#,ent @etai& Report
dated Fe.r'ar# 3(, 322)8c!anro.&esvirt'a&a"&i.rar#
Con%ress,an Mar: Ci,eneJ did not $i&e ,# co,p&aint a%ainst t!e acc'sed in an# Co'rt or prosec'tor
o$$ice. T!is, despite !is c&ai, in !is co'nterGa$$idavit t!atc!anRo.&esvirt'a&La"&i.rar#
q)3. Mean"!i&e, Pres. Estrada stepped do"n as President a$ter t!e Ar,ed Forces o$ t!e P!i&ippines
"it!dre" its s'pport to !i,, and t!e Arro#o Ad,inistration "as insta&&ed on Can'ar# )*, 322). T!e ne"
Secretar# o$ C'stice, Hernando 6. PereJ, "as appointed .# Pres. Arro#o. Soon a$ter !is appoint,ent.
Sec. PereJ sent $ee&ers t!at I a, !is $irst tar%et $or inc&'sion in t!e cri,ina& cases t!at !e "i&& $i&e a%ainst
Pres. Estrada. He a&so t!reatened and inti,idated ,e and ,# $a,i&# "it! .odi&# !ar, and incarceration in
a cit# 5ai& "it! !ardened cri,ina&s and dr'% addicts 'n&ess I e9ec'te da,a%in% a$$idavits a%ainst Pres.
Estrada and !is cronies and associates. 6eca'se o$ t!e intense press're 'pon ,e and ,# $a,i&#, I "as
$orced to co,e across "it! US u3.2 Mi&&ion. 7Pa%e -( o$ t!e Records8c!anro.&esvirt'a&a"&i.rar#
It "as on&# on @ece,.er 3(, 3223 as stated in o'r Reso&'tion t!at Con%ress,an Mar: Ci,eneJ $i&ed !is
co,p&aint "it! t!e O,.'ds,an, even i$ t!e said o$$ense "as a&&e%ed to !ave .een co,,itted on Fe.. )(,
322) and it "as on&# on Apri& )+, 322+ t!at t!e O,.'ds,an presented t!e in$or,ation "it! t!is Co'rt.
T!e co,p&ainant !ad !esitated into $i&in% !is co,p&aint $or a.o't ei%!teen 7)+8 ,ont!s "!i&e t!e
O,.'ds,an "it! do'.&e !esitation di&&#Gda&&ied $or a.o't si9 7;8 #ears. A&& in a&&, t!e de&a# $ro, t!e
s'pposed co,,ission o$ s'c! a si,p&e o$$ense o$ Ro..er# too: ,ore t!an seven #ears G t!at is $ro,
Fe.r'ar# )(, 322) to Apri& )+, 322+. It is c&ear t!e soGca&&ed &e%a& i,pedi,ents are .'t e,pt# assertion to
.e&ated&# 5'sti$# an i,per,issi.&e action.
Ta:in% e9ception to o'r r'&in% t!at t!e tota&it# o$ $acts and s'rro'ndin% circ',stances .ear 'n,ista:a.&#
t!e ear,ar:s o$ inordinate de&a#, t!e ,ovant ,ade a co,parison o$ t!ose cases dis,issed .# t!e
S'pre,e Co'rt $or vio&ation o$ t!e Constit'tiona& ri%!t o$ t!e acc'sed to speed# disposition o$ cases, and
t!is case, and "ron%$'&&# conc&'de t!ere "as no de&a# in t!eir !and&in% o$ t!e case at .ar.
=e !ave a&read# reso&ved and passed 'pon rat!er ade<'ate&# t!is iss'e in o'r Reso&'tion "it! t!e
o.servation t!at not an#one o$ t!e cases cited invo&ved t!e c!ar%e o$ Ro..er#. T!e ,ovant/s disc'ssion
asserted no ne" and s'.stantia& reason and ar%',ent to pers'ade 's to reverse or ,odi$# o'r
considered opinion. =e !o"ever pose t!is <'estion to t!e prosec'tion. I$ Asst. O,.'ds,an Pe&a%io
Aposto& reco,,ended t!e $i&in% o$ t!e in$or,ation a%ainst t!e acc'sed on Nove,.er -, 322; "!# did it
ta:e t!e O,.'ds,an on&# on Can'ar# 0, 322- to approve t!e reco,,endation. And i$, on Can'ar# )),
322- t!e acc'sed s'.,itted t!eir Motion $or Reconsideration, "!# did it ta:e t!e O,.'ds,an 'p to Apri&
)0, 322+ G a ,atter o$ a.o't $i$teen 7)08 ,ont!s to reso&ve t!e sa,e "!en t!ere "as NO OPPOSITION
nor co,,ent $ro, t!e ot!er part#R
T!e ar%',ent t!at qt!e a't!orit# o$ t!e O,.'ds,an is not divested .# t!e c&ai,ed de&a# in $i&in% t!e
in$or,ation as t!is a't!orit# is vested .# &a"r is a rec:&ess reasonin% t!at on&# s!o"s t!at "!i&e ad,ittin%
t!ere "as 'nd'e de&a# in t!e disposition o$ t!e case, it co'&d sti&& proceed "it! its in$or,ation to c!ar%e t!e
acc'sed.
T!e prosec'tion need not .e re,inded o$ t!e 'ni$or, r'&in% o$ t!e Honora.&e S'pre,e Co'rt dis,issin%
t!e cases o$ Tatad, An%c!an%co, @'terte and ot!er cases $or trans%ressin% t!e constit'tiona& ri%!ts o$ t!e
acc'sed to a speed# disposition o$ cases. To ar%'e qt!at t!e a't!orit# o$ t!e O,.'ds,an is not divested
.# t!e c&ai,ed de&a# in $i&in% t!e in$or,ation 999r is to &i,it t!e po"er o$ t!e Co'rt to act on .&atant
trans%ression o$ t!e constit'tion.
As to $actG$indin% investi%ation, t!e Co'rt $inds it so .ase&ess $or t!e ,ovant to capita&iJe on "!at it
s'pposed&# did in t!e process o$ t!e $actG$indin% stanceD and t!en reasonin% o't as i$ c&'tc!in% on stra"s
t!at t!e se<'ences o$ events s!o'&d e9c'se it $ro, &ate&# $i&in% t!e in$or,ation. 6't it too: t!e ,ovant si9
7;8 #ears to cond'ct t!e said $actG$indin% investi%ation, and t!en 'na.as!ed&# it ar%'es t!at is not part o$
t!e pre&i,inar# investi%ation.
@eter,inin% pro.a.&e ca'se s!o'&d 's'a&&# ta:e no ,ore t!an ninet# 7*28 da#s precise&# .eca'se it on&#
invo&ves $indin% o't "!et!er t!ere are reasona.&e %ro'nds to .e&ieve t!at t!e persons c!ar%ed co'&d .e
!e&d $or tria& or not. It does not re<'ire si$tin% t!ro'%! and ,etic'&o's&# e9a,inin% ever# piece o$ evidence
to ascertain t!at t!e# are eno'%! to convict t!e persons invo&ved .e#ond reasona.&e do'.t. T!at is
a&read# t!e $'nction o$ t!e Co'rts.
As ar%'ed .# acc'sed Ra,on Arceo, t!e c&ai, o$ t!e ,ovant t!at t!e pre&i,inar# investi%ation o$ t!e
instant case co,,enced on&# on Nove,.er )4, 3220 "!en t!e Fie&d Investi%ation O$$ice 7FIO8 $i&ed its
co,p&aint, and not on @ece,.er 3(, 3223 "!en Mar: Ci,eneJ $i&ed !is co,p&aintGa$$idavit, is rat!er
specio's and does not !o&d "ater as Ro..er# "as not a,on% t!e o$$enses inc&'ded in t!e c!ar%e o$ t!e
FIO. As s'c!, it is not correct to sa# t!at t!e co'ntin% o$ t!e period $or de&a# s!o'&d co,,ence on&# in
Nove,.er 3220.
T!e conc&'sion t!'s, t!at t!e &on% "aitin% o$ si9 7;8 #ears $or t!e O$$ice o$ t!e O,.'ds,an to reso&ve t!e
si,p&e case o$ Ro..er# is c&ear&# an inordinate de&a#, .&atant&# into&era.&e, and %ross&# pre5'dicia& to t!e
constit'tiona& ri%!t o$ speed# disposition o$ cases, easi&# co,,ands assent. T!is Co'rt, it ,'st .e ,ade
c&ear, is not ,a:in% nor ind'&%in% in ,ere ,at!e,atica& rec:onin% o$ t!e ti,e invo&ved.
In its si9t! %ro'nd t!e ,ovant ar%'ed t!at t!e First, T!ird and Fo'rt! @ivisions a&& 5'n:ed t!e c&ai,ed
inordinate de&a# o$ t!e acc'sed and as:ed t!at t!e Second @ivision s!o'&d q999 coGe9ist not "or: on
crossGp'rposes "it! t!e ot!er Co'rt/s @ivision 999r. T!e ar%',ent .e%s t!e <'estiony S'ppose i$ and
"!en t!e incident reac!es t!e S'pre,e Co'rt, t!e !i%!est Co'rt o$ t!e &and r'&ed t!at it is t!e Second
@ivision "!ic! is correct, and t!e ot!er @ivisions in error, "!at "o'&d !appen no" to t!e ar%',ent o$ t!e
,ovant t!at q999 t!ere is r!#,e or reason $or t!e Sandi%an.a#an, Second @ivision to coGe9ist 999 "it!
t!e ot!er Co'rt/s @ivision 999r.
Moreover, t!e in$or,ation in t!e $irst division c!ar%es t!e acc'sed o$ Iio&ation o$ Sec. ( 7.8 o$ R.A. (2)*,
in t!e t!ird division t!e acc'sation "as $or Fa&si$ication o$ P'.&ic @oc',ent 'nder Art. )-) o$ t!e Revised
Pena& Code, "!i&e t!e acc'sed !ave .een indicted $or vio&atin% Sec. - R.A. (2)* in re&ation to Sec. + o$
R.A. ;-)( .e$ore t!e Fo'rt! @ivision. T!e Co'rt can not sa# "!et!er t!ere is need $or paper trai& or
,onitorin% o$ doc',ents in t!ose cases, as t!e @ivisions concerned can co,petent&# reso&ve and pass
'pon it .'t certain&# in t!is instant case o$ Ro..er#, to ind'&%e in a pro&on%ed $actG$indin% process is not a
.oon .'t a .ane on t!e part o$ t!e prosec'tion
In a distaste$'& e9!i.ition o$ 'nsavo'r# &an%'a%e, .orderin% on derision and conte,pt, t!e prosec'tion
ar%'ed t!at q999 t!e assai&ed reso&'tion is a "anton disp&a# o$ arro%ance, conte,pt'o's and o'tri%!t
i&&e%a& $or it ,ooted t!e sa,e iss'e o$ inordinate de&a# pendin% "it! t!e Honora.&e S'pre,e Co'rt 999r.
T!is on&# %oes to s!o" t!at t!e prosec'tion is tota&&# i%norant o$ t!e !ierarc!# o$ Co'rts in o'r 5'dicia&
s#ste,.
999 It ,'st .e re,e,.ered t!at de&a# in instit'tin% prosec'tions is not on&# prod'ctive o$ e9pense to t!e
State, .'t o$ peri& to p'.&ic 5'stice in t!e atten'ation and distortion, even .# ,ere nat'ra& &apse o$ ,e,or#,
o$ testi,on#. It is t!e po&ic# o$ t!e &a" t!at prosec'tions s!o'&d .e pro,pt, and t!at stat'tes, en$orcin%
s'c! pro,ptit'de s!o'&d .e vi%oro's&# ,aintained. T!e# are not ,ere&# acts o$ %race, .'t c!ec:s
i,posed .# t!e State 'pon itse&$, to e9act vi%i&ant activit# $ro, its s'.a&terns, and to sec're $or cri,ina&
tria&s t!e .est evidence t!at can .e o.tained.
=HEREFORE, pre,ises considered, t!e prosec'tion/s Motion $or Reconsideration dated @ece,.er +,
322+ is denied $or &ac: o$ ,erit.
So ordered.
On A'%'st 34, 322*, t!e State assai&ed t!e reso&'tions o$ t!e Second @ivision o$ t!e Sandi%an.a#an in
t!is Co'rt 7G.R. No. )+*2;(8.-(
Conso&idation o$ t!e petitions
On Octo.er 3;, 322*, t!e Co'rt directed t!at G.R. No. )+*2;( .e conso&idated "it! G.R. No. )+3(;2G;(
7entit&ed Hernando 6. PereJ and Rosario S. PereJ v. T!e O,.'ds,an, Fie&d Investi%ation O$$icer o$ t!e
O,.'ds,an and Mario 6. Crespo a.:.a. Mar: Ci,eneJ8 and G.R. No. )-(*;-G-) 7Ernest 6. Esca&er v.
T!e O$$ice o$ t!e O,.'ds,an, et a&.8.-4
On Apri& -, 32)2, t!e Co'rt conso&idated G.R. No. )++);0 "it! G.R. Nos. )-(*;-G-), G.R. Nos. )+3(;2G
;( and G.R. No. )+*2;( 7Peop&e o$ t!e P!i&ippines v. Hon. Sandi%an.a#an, 3nd @ivision, et a&.8.-0
G.R. No. )-(*;-G-) and G.R. No. )+3(;2G;( "ere specia& civi& actions $or certiorari to prevent t!e $i&in%
o$ t!e cri,ina& in$or,ations a%ainst t!e respondents.
@econso&idation and dis,issa& o$ G.R. No. )-(*;-G-) and G.R. No. )+3(;2G;( on t!e %ro'nd o$ t!eir
intervenin% ,ootness
On Fe.r'ar# )), 32)(, t!e Co'rt deconso&idated G.R. No. )-(*;-G-) and G.R. No. )+3(;2G;( $ro, G.R.
No. )++);0 and G.R. No. )+*2;( on t!e %ro'nd t!at t!e intervenin% $i&in% o$ t!e in$or,ations in Cri,ina&
Case No. S6G2+GCRMG23;0 and Cri,ina& Case No. S6G2+GCRMG23;; !ad rendered t!e petitions in
G.R. No. )-(*;-G-) and G.R. No. )+3(;2G;( ,oot.-;
Iss'es
In G.R. No. )++);0, t!e State raises t!e $o&&o"in% iss'esc!anRo.&esvirt'a&La"&i.rar#
I.
=!et!er respondent co'rt acted "it! %rave a.'se o$ discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction
IN AUASHING THE INFORMATION in cri,ina& case s.G2+Gcr,G3;0, .# con$inin% t!e de$inition o$ t!e
"ord qtransactionr in section (768 o$ r.a. (2)* as transactions invo&vin% ,onetar# consideration.
II.
"!et!er respondent co'rt acted "it! %rave a.'se o$ discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction
in re&#in% so&e&# on t!e case o$ soriano, CR. IS. SAN@IGAN6ABAN AN@ @ISREGAR@E@
CURISPRU@ENCE THAT SHO=S SECTION ( 768 OF RA (2)* EHTEN@S TO ANB @EALING =ITH
THE GOIERNMENT.
III.
=HETHER RESPON@ENT COURT ACTE@ =TH GRAIE A6USE OF @ISCRETION =HEN IT
RESOLIE@ THE MOTIONS TO AUASH 7ON THE GROUN@ THaT THE ALLEGATIONS IN THE
INFORMATION @O NOT CONSTITUTE AN OFFENSE8 6B GOING 6EBON@ THE ALLEGATIONS IN
THE INFORMATION AN@ CONSI@ERING SUPPOSE@ FACTS =ITHOUT ANB
6ASIS.--C!anRo.&esIirt'a&a"&i.rar#
In G.R. No. )+*2;(, t!e State s'.,its t!e $o&&o"in% iss'esc!anRo.&esvirt'a&La"&i.rar#
=HETHER OR NOT PU6LIC RESPON@ENT SAN@IGAN6ABAN ACTE@ =ITH GRAIE A6USE OF
@ISCRETION AMOUNTING TO LACN OR EHCESS OF CURIS@ICTION IN AUASHING THE
INFORMATION IN CRIMINAL CASE S6G2+GCRMG23;; 6B HOL@ING THAT qTHERE 6EING A CLEAR
IIOLATION OF THE CONSTITUTIONAL RIGHT OF THE ACCUSE@, THE PROSECUTION IS OUSTE@
OF ANB AUTHORITB TO FILE THE INFORMATION.r
=HETHER OR NOT PU6LIC RESPON@ENT SAN@IGAN6ABAN ACTE@ =ITH GRAIE A6USE OF
@ISCRETION AMOUNTING TO LACN OR EHCESS OF CURIS@ICTION IN FIN@ING THE TOTALITB OF
THE FACTS AN@ THE SURROUN@ING CIRCUMSTANCES 6EARS UNMISTANA6LB THE EARMARNS
OF INOR@INATE @ELAB, MANING THE APPLICA6ILITB OF THE @OCTRINE ENUNCIATE@ IN
ANGCHONGCO CR. AN@ @UTERTE CASES CITE@ IN THE PARTIES/ PLEA@INGS
IRREFRAGA6LE.-+
T!e $ore%oin% iss'es are restated t!'s"isec!anRo.&esvirt'a&La"&i.rar#
I.
=!et!er or not it "as t!e O$$ice o$ t!e So&icitor Genera&, not t!e O$$ice o$ t!e O,.'ds,an, t!at !ad t!e
a't!orit# to $i&e t!e petitions to assai& t!e Sandi%an.a#an reso&'tions.
II.
=!et!er t!e State, as t!e petitioner in G.R. No. )++);0 and G.R. No. )+*2;(, resorted to t!e "ron%
re,ed# in assai&in% t!e reso&'tions o$ t!e Sandi%an.a#an dis,issin% t!e cri,ina& c!ar%es a%ainst t!e
respondents t!ro'%! petitions $or certiorari instead o$ petitions $or revie" on certiorari.
Speci$ic Iss'e in G.R. No. )++);0
=!et!er or not t!e Sandi%an.a#an co,,itted %rave a.'se o$ discretion a,o'ntin% to &ac: or in e9cess o$
5'risdiction in <'as!in% t!e in$or,ation .# app&#in% t!e de$inition o$ transaction in Soriano, Cr. v
Sandi%an.a#an, )() SCRA )++.
Speci$ic Iss'e in G.R. No. )+*2;(
=!et!er or not t!e Sandi%ana.a#an co,,itted %rave a.'se o$ discretion a,o'ntin% to &ac: or in e9cess
o$ 5'risdiction "!en it dis,issed t!e cri,ina& case d'e to t!e inordinate de&a# o$ t!e O$$ice o$ t!e
O,.'ds,an in .rin%in% t!e cri,ina& action a%ainst respondents as to vio&ate t!eir constit'tiona& ri%!t to
t!e speed# disposition o$ cases.
R'&in%
T!e petitions $or certiorari are devoid o$ ,erit.
I.
T!e O$$ice o$ t!e O,.'ds,an is e,po"ered to $i&e an appea& or certiorari $ro, t!e Sandi%an.a#an to t!e
S'pre,e Co'rt.
Respondents contend t!at t!e O$$ice o$ t!e O,.'ds,an !as no a't!orit# to $i&e t!e petitions $or certiorari
.eca'se on&# t!e So&icitor Genera& co'&d $i&e t!e petitions in t!is Co'rt p'rs'ant to Section (0, C!apter )3,
Tit&e III, 6oo: II o$ t!e Ad,inistrative Code as a,ended .# E.O. No. 3*3 ,"!ic! pertinent&#
statesc!anRo.&esvirt'a&La"&i.rar#
Section (0. Po"ers and F'nctions.>T!e O$$ice o$ t!e So&icitor Genera& s!a&& represent t!e Govern,ent o$
t!e P!i&ippines, its a%encies and instr',enta&ities and its o$$icia&s and a%ents in an# &iti%ation,
proceedin%s, investi%ation or ,atter re<'irin% t!e services o$ a &a"#er. =!en a't!oriJed .# t!e President
or !ead o$ t!e o$$ice concerned, it s!a&& a&so represent %overn,entGo"ned or contro&&ed corporations. T!e
O$$ice o$ t!e So&icitor Genera& s!a&& constit'te t!e &a" o$$ice o$ t!e Govern,ent and, as s'c!, s!a&&
disc!ar%e d'ties re<'irin% t!e services o$ a &a"#er. It s!a&& !ave t!e $o&&o"in% speci$ic po"ers and
$'nctions

7)8
Represent t!e Govern,ent in t!e S'pre,e Co'rt and t!e Co'rt o$ Appea&s in a&& cri,ina& proceedin%sD
represent t!e Govern,ent and its o$$icers in t!e S'pre,e Co'rt, t!e Co'rt o$ Appea&s, and a&& ot!er co'rts
or tri.'na&s in a&& civi& actions and specia& proceedin%s in "!ic! t!e Govern,ent or an# o$$icer t!ereo$ in
!is o$$icia& capacit# is a part#.
9 9 9
T!e contention o$ t!e respondents is %ross&# erroneo's.
T!at on&# t!e So&icitor Genera& ,a# represent t!e Peop&e on appea& or certiorari in t!e S'pre,e Co'rt and
t!e Co'rt o$ Appea&s in a&& cri,ina& proceedin%s is t!e %enera& r'&e,-* .'t t!e r'&e ad,its t!e e9ception
concernin% qa&& cases e&evated to t!e Sandi%an.a#an and $ro, t!e Sandi%an.a#an to t!e S'pre,e Co'rt,
t!e O$$ice o$ t!e O,.'ds,an, t!ro'%! its specia& prosec'tor, s!a&& represent t!e Peop&e o$ t!e
P!i&ippines, e9cept in cases $i&ed p'rs'ant to E9ec'tive Order Nos. ), 3, )4 and )4GA, iss'ed in )*+;.r
More speci$ica&&#, Section 47c8 o$ Rep'.&ic Act No. +34* a't!oriJes t!e e9ception,
viJc!anRo.&esvirt'a&La"&i.rar#
9 9 9
c. Civi& and cri,ina& cases $i&ed p'rs'ant to and in connection "it! E9ec'tive Order Nos. ), 3, )4 and )4G
A, iss'ed in )*+;.
9 9 9
T!e proced're prescri.ed in 6atas Pa,.ansa 6&%. )3*, as "e&& as t!e i,p&e,entin% r'&es t!at t!e
S'pre,e Co'rt !as pro,'&%ated and ,a# !erea$ter pro,'&%ate, re&ative to appea&sOpetitions $or revie" to
t!e Co'rt o$ Appea&s, s!a&& app&# to appea&s and petitions $or revie" $i&ed "it! t!e Sandi%an.a#an. In a&&
cases e&evated to t!e Sandi%an.a#an and $ro, t!e Sandi%an.a#an to t!e S'pre,e Co'rt, t!e O$$ice o$
t!e O,.'ds,an, t!ro'%! its specia& prosec'tor, s!a&& represent t!e Peop&e o$ t!e P!i&ippines, e9cept in
cases $i&ed p'rs'ant to E9ec'tive Order Nos. ), 3, )4 and )4GA, iss'ed in )*+;. 76o&d e,p!asis provided8
9 9 9
Conse<'ent&#, t!e $i&in% o$ t!e petitions in t!ese cases .# t!e O$$ice o$ t!e O,.'ds,an, t!ro'%! t!e OSP,
"as a't!oriJed .# &a".
II.
Petitioner did not esta.&is! %rave a.'se o$ discretion on t!e part o$ t!e Sandi%an.a#an
T!e petitions $or certiorari .ro'%!t .# t!e State ,'st nonet!e&ess .e dis,issed $or $ai&'re to s!o" an#
%rave a.'se o$ discretion on t!e part o$ Sandi%an.a#an in iss'in% t!e assai&ed reso&'tions.
A specia& civi& action $or certiorari is an independent action .ased on t!e speci$ic %ro'nds provided in
Section ), R'&e ;0 o$ t!e R'&es o$ Co'rt, and can prosper on&# t!e 5'risdictiona& error, or t!e %rave a.'se
o$ discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction co,,itted .# t!e in$erior co'rt or 5'd%e is a&&e%ed
and proved to e9ist.
In @e &os Santos v. Metropo&itan 6an: and Tr'st Co,pan#,+2 t!e Co'rt !as e9po'nded on t!e nat're and
reac! o$ t!e e9traordinar# re,ed# o$ certiorari, to "itc!anRo.&esvirt'a&La"&i.rar#
=e re,ind t!at t!e "rit o$ certiorari G .ein% a re,ed# narro" in scope and in$&e9i.&e in c!aracter, "!ose
p'rpose is to :eep an in$erior co'rt "it!in t!e .o'nds o$ its 5'risdiction, or to prevent an in$erior co'rt $ro,
co,,ittin% s'c! %rave a.'se o$ discretion a,o'ntin% to e9cess o$ 5'risdiction, or to re&ieve parties $ro,
ar.itrar# acts o$ co'rts 7i.e., acts t!at co'rts !ave no po"er or a't!orit# in &a" to per$or,8 G is not a
%enera& 'ti&it# too& in t!e &e%a& "or:s!op, and cannot .e iss'ed to correct ever# error co,,itted .# a &o"er
co'rt.
In t!e co,,on &a", $ro, "!ic! t!e re,ed# o$ certiorari evo&ved, t!e "rit certiorari "as iss'ed o't o$
C!ancer#, or t!e Nin%/s 6enc!, co,,andin% a%ents or o$$icers o$ t!e in$erior co'rts to ret'rn t!e record o$
a ca'se pendin% .e$ore t!e,, so as to %ive t!e part# ,ore s're and speed# 5'stice, $or t!e "rit "o'&d
ena.&e t!e s'perior co'rt to deter,ine $ro, an inspection o$ t!e record "!et!er t!e in$erior co'rt/s
5'd%,ent "as rendered "it!o't a't!orit#. T!e errors "ere o$ s'c! a nat're t!at, i$ a&&o"ed to stand, t!e#
"o'&d res'&t in a s'.stantia& in5'r# to t!e petitioner to "!o, no ot!er re,ed# "as avai&a.&e. I$ t!e in$erior
co'rt acted "it!o't a't!orit#, t!e record "as t!en revised and corrected in ,atters o$ &a". T!e "rit o$
certiorari "as &i,ited to cases in "!ic! t!e in$erior co'rt "as said to .e e9ceedin% its 5'risdiction or "as
not proceedin% accordin% to essentia& re<'ire,ents o$ &a" and "o'&d &ie on&# to revie" 5'dicia& or <'asiG
5'dicia& acts.
T!e concept o$ t!e re,ed# o$ certiorari in o'r 5'dicia& s#ste, re,ains ,'c! t!e sa,e as it !as .een in t!e
co,,on &a". In t!is 5'risdiction, !o"ever, t!e e9ercise o$ t!e po"er to iss'e t!e "rit o$ certiorari is &ar%e&#
re%'&ated .# &a#in% do"n t!e instances or sit'ations in t!e R'&es o$ Co'rt in "!ic! a s'perior co'rt ,a#
iss'e t!e "rit o$ certiorari to an in$erior co'rt or o$$icer. Section ), R'&e ;0 o$ t!e R'&es o$ Co'rt
co,pe&&in%&# provides t!e re<'ire,ents $or t!at p'rpose, viJc!anRo.&esvirt'a&La"&i.rar#
Section ). Petition $or certiorari. > =!en an# tri.'na&, .oard or o$$icer e9ercisin% 5'dicia& or <'asiG5'dicia&
$'nctions !as acted "it!o't or in e9cess o$ its or !is 5'risdiction, or "it! %rave a.'se o$ discretion
a,o'ntin% to &ac: or e9cess o$ 5'risdiction, and t!ere is no appea&, or an# p&ain, speed#, and ade<'ate
re,ed# in t!e ordinar# co'rse o$ &a", a person a%%rieved t!ere.# ,a# $i&e a veri$ied petition in t!e proper
co'rt, a&&e%in% t!e $acts "it! certaint# and pra#in% t!at 5'd%,ent .e rendered ann'&&in% or ,odi$#in% t!e
proceedin%s o$ s'c! tri.'na&, .oard or o$$icer, and %rantin% s'c! incidenta& re&ie$s as &a" and 5'stice ,a#
re<'ire.
T!e petition s!a&& .e acco,panied .# a certi$ied tr'e cop# o$ t!e 5'd%,ent, order or reso&'tion s'.5ect
t!ereo$, copies o$ a&& p&eadin%s and doc',ents re&evant and pertinent t!ereto, and a s"orn certi$ication o$
nonG$or', s!oppin% as provided in t!e t!ird para%rap! o$ section (, R'&e 4;.
7)a8c!anro.&esvirt'a&a"&i.rar#
P'rs'ant to Section ), s'pra, t!e petitioner ,'st s!o" t!at, one, t!e tri.'na&, .oard or o$$icer e9ercisin%
5'dicia& or <'asiG5'dicia& $'nctions acted "it!o't or in e9cess o$ 5'risdiction or "it! %rave a.'se o$
discretion a,o'ntin% to &ac: or e9cess o$ 5'risdiction, and, t"o, t!ere is neit!er an appea& nor an# p&ain,
speed# and ade<'ate re,ed# in t!e ordinar# co'rse o$ &a" $or t!e p'rpose o$ a,endin% or n'&&i$#in% t!e
proceedin%.
Considerin% t!at t!e re<'isites ,'st conc'rrent&# .e attendant, t!e !erein petitioners/ stance t!at a "rit o$
certiorari s!o'&d !ave .een iss'ed even i$ t!e CA $o'nd no s!o"in% o$ %rave a.'se o$ discretion is
a.s'rd. T!e co,,ission o$ %rave a.'se o$ discretion "as a $'nda,enta& re<'isite $or t!e "rit o$ certiorari
to iss'e a%ainst t!e RTC. =it!o't t!eir stron% s!o"in% eit!er o$ t!e RTC/s &ac: or e9cess o$ 5'risdiction, or
o$ %rave a.'se o$ discretion .# t!e RTC a,o'ntin% to &ac: or e9cess o$ 5'risdiction, t!e "rit o$ certiorari
"o'&d not iss'e $or .ein% .ere$t o$ &e%a& and $act'a& .ases. =e need to e,p!asiJe, too, t!at "it! certiorari
.ein% an e9traordinar# re,ed#, t!e# ,'st strict&# o.serve t!e r'&es &aid do"n .# &a" $or %rantin% t!e re&ie$
so'%!t.
T!e so&e o$$ice o$ t!e "rit o$ certiorari is t!e correction o$ errors o$ 5'risdiction, "!ic! inc&'des t!e
co,,ission o$ %rave a.'se o$ discretion a,o'ntin% to &ac: o$ 5'risdiction. In t!is re%ard, ,ere a.'se o$
discretion is not eno'%! to "arrant t!e iss'ance o$ t!e "rit. T!e a.'se o$ discretion ,'st .e %rave, "!ic!
,eans eit!er t!at t!e 5'dicia& or <'asiG5'dicia& po"er "as e9ercised in an ar.itrar# or despotic ,anner .#
reason o$ passion or persona& !osti&it#, or t!at t!e respondent 5'd%e, tri.'na& or .oard evaded a positive
d't#, or virt'a&&# re$'sed to per$or, t!e d't# en5oined or to act in conte,p&ation o$ &a", s'c! as "!en s'c!
5'd%e, tri.'na& or .oard e9ercisin% 5'dicia& or <'asiG5'dicia& po"ers acted in a capricio's or "!i,sica&
,anner as to .e e<'iva&ent to &ac: o$ 5'risdiction. 7citations o,itted8c!anro.&esvirt'a&a"&i.rar#
@id t!e petitioner s!o" %rave a.'se o$ discretion t!at "o'&d "arrant t!e iss'ance o$ t!e "rit o$ certiorari
pra#ed $orR
A.
G.R. No. )++);0
T!e Sandi%an.a#an correct&# app&ied t!e restrictive ,eanin% o$ t!e ter, transaction as 'sed in Section (
7.8 o$ Rep'.&ic Act No. (2)* adopted in Soriano, Cr. v. Sandi%an.a#an
In its <'estioned reso&'tion dis,issin% Cri,ina& Case No. S6G2+GCRMG23;0, t!e Sandi%an.a#an re&ied
on t!e r'&in% in Soriano, Cr. v. Sandi%an.a#an,+) in "!ic! t!e principa& iss'e "as "!et!er or not t!e
pre&i,inar# investi%ation o$ a cri,ina& co,p&aint cond'cted .# petitioner Soriano, Cr., t!en a Fisca&, "as a
qcontract or transactionr as to .rin% t!e co,p&aint "it!in t!e a,.it o$ Section ( 7.8 o$ Rep'.&ic Act No.
(2)*, "!ic! p'nis!ed an# p'.&ic o$$icer $or qEdFirect&# or indirect&# re<'estin% or receivin% an# %i$t, present,
s!are, percenta%e, or .ene$it, $or !i,se&$ or $or an# ot!er person, in connection "it! an# contract or
transaction .et"een t!e Govern,ent and an# ot!er part#, "!erein t!e p'.&ic o$$icer in !is o$$icia& capacit#
!as to intervene 'nder t!e &a".r T!e Soriano, Cr. Co'rt r'&ed in t!e ne%ative, and
prono'ncedc!anRo.&esvirt'a&La"&i.rar#
It is o.vio's t!at t!e investi%ation cond'cted .# t!e petitioner "as not a contract. Neit!er "as it a
transaction .eca'se t!is ter, ,'st .e constr'ed as ana&o%o's to t!e ter, "!ic! precedes it. A
transaction, &i:e a contract, is one "!ic! invo&ves so,e consideration as in credit transactions and t!is
e&e,ent 7consideration8 is a.sent in t!e investi%ation cond'cted .# t!e petitioner.
In t!e &i%!t o$ t!e $ore%oin%, =e a%ree "it! t!e petitioner t!at it "as error $or t!e Sandi%an.a#an to !ave
convicted !i, o$ vio&atin% Sec. ( 7.8 o$ R.A. No. (2)*. 7E,p!asis s'pp&ied8c!anro.&esvirt'a&a"&i.rar#
T!e State no" ar%'es, !o"ever, t!at t!e Sandi%an.a#an t!ere.# co,,itted %rave a.'se o$ discretion
res'&tin% to &ac: or in e9cess o$ 5'risdiction $or app&#in% t!e interpretation o$ t!e ter, transaction in
Soriano, Cr. considerin% t!at t!e ter, transaction s!o'&d .e constr'ed ,ore &i.era&&#, and positin% t!at
Soriano, Cr. "as a&read# a.andoned .# t!e Co'rt, citin% $or t!at p'rpose t!e r'&in%s in Me5ia v.
Pa,aran,+3Pe&i%rino v. Peop&e,+( and C!an% v. Peop&e.+4
=e disa%ree "it! t!e petitioner, and $ind $or t!e respondents.
First o$ a&&, t!e interpretation in Soriano, Cr. o$ t!e ter, transaction as 'sed in Section (7.8 o$ Rep'.&ic Act
No. (2)* !as not .een overt'rned .# t!e Co'rt.
In Me5ia v. Pa,aran, decided en .anc on Apri& )0, )*++, Me5ia !ad de,anded and received ,one# $ro,
so,e persons invo&ved in certain cases in a tria& co'rt "!ere Me5ia "as t!en servin% as t!e .ranc! c&er:
o$ co'rt in consideration o$ a pro,ise t!at s!e "o'&d !e&p in %ettin% a $avora.&e 5'd%,ent $or t!e,. T!e
iss'e "as "!et!er or not Me5ia co'&d .e convicted 'nder t!e in$or,ation t!at a&&e%ed t!at s!e !ad
de,anded a certain a,o'nt, a&t!o'%! t!e Sandi%an.a#an $o'nd t!at t!e a,o'nt "as di$$erent $ro, t!at
c!ar%ed in t!e in$or,ation. T!e Co'rt dis,issed !er petition, and r'&ed t!at qEiFn a prosec'tion 'nder t!e
$ore%oin% provision o$ t!e AntiGGra$t La" t!e va&'e o$ t!e %i$t, ,one# or present, etc. is i,,ateria& 999
E"F!at is pena&iJed is t!e receipt o$ an# %i$t, present, s!are, percenta%e, or .ene$it .# a p'.&ic o$$icer in
connection "it! a contract or transaction "it! t!e Govern,ent, "!erein t!e p'.&ic o$$icer !as to intervene
in !is o$$icia& capacit#.r T!e Co'rt no"!ere r'&ed on t!e proper interpretation o$ t!e ter, transaction.
In Pe&i%rino v. Peop&e, decided on A'%'st )(, 322), Pe&i%rino, an e9a,iner o$ t!e 6'rea' o$ Interna&
Reven'e, "as convicted o$ vio&atin% Section (7.8 o$ Rep'.&ic Act No. (2)* $or de,andin% t!e a,o'nt o$
P322,222.22 $ro, t!e co,p&ainant in connection "it! t!e &atter/s ta9 &ia.i&ities. Pe&i%rino/s de$ense "as
t!at !e did not qde,andr t!e ,one#, .'t t!e ,one# "as 5'st %iven to !i,. He ar%'ed t!at !e !ad on&#
in$or,ed t!e co,p&ainant o$ !is ta9 de$iciencies, and t!at t!e co,p&ainant !ad t!en re<'ested t!e
red'ction o$ t!e a,o'nt c&ai,ed as !is ta9 de$iciencies. T!e Co'rt $o'nd no ,erit in Pe&i%rino/s ar%',ent.
T!e r'&in% !ad not!in% to do "it! t!e interpretation o$ t!e ter, transaction.
C!an% v. Peop&e, decided on C'&# 3), 322;, "as a case in "!ic! t"o persons G C!an% and San Mateo G
"ere convicted o$ vio&atin% Section (7.8 o$ Rep'.&ic Act No. (2)* a$ter .ein% $o'nd to !ave received
P)30,222.22 in consideration o$ t!eir iss'ance o$ a Certi$icate o$ E9a,ination to t!e e$$ect t!at t!e
co,p&ainant !ad qno ta9 &ia.i&it#r in $avo'r o$ t!e ,'nicipa&it#, not"it!standin% t!at it !ad not sett&ed "it!
t!e, on t!eir assessed de$icienc# ta9 o$ P4*4,222.22. C!an% and San Mateo contended t!at t!e c!ar%e
!ad res'&ted $ro, an invo&'ntar# contact "!ere.# co,p&ainant Ma%at !ad si,p&# tossed to t!e, t!e
.ro"n enve&opeD t!at t!ere !ad .een no conspirac# .et"een t!e,D and t!at "!at !ad transpired !ad .een
an insti%ation, not an entrap,ent. In a$$ir,in% t!eir conviction, t!e Co'rt did not to'c! on t!e proper
interpretation o$ t!e ter, transaction as 'sed in Section (7.8 o$ Rep'.&ic Act No. (2)*.
T!e t!ree r'&in%s t!e State !as cited !ere did not overt'rn t!e interpretation ,ade in Soriano, Cr. o$ t!e
ter, transaction as 'sed in Section (7.8 o$ Rep'.&ic Act No. (2)* .eca'se t!e proper interpretation o$ t!e
ter, "as c&ear&# not decisive in t!ose cases. On t!e contrar#, in t!e &ater r'&in% in Merenci&&o v. Peop&e,+0
pro,'&%ated in 322-, t!e Co'rt reiterated t!e restrictive interpretation %iven in Soriano, Cr. to t!e ter,
transaction as 'sed in Section (7.8 o$ Rep'.&ic Act No. (2)* in connection "it! a di$$erentiation .et"een
.ri.er# 'nder t!e Revised Pena& Code and t!e vio&ation o$ Section (7.8 o$ Rep'.&ic Act No. (2)* .#
!o&din% t!at t!e &atter is q&i,ited on&# to contracts or transactions invo&vin% ,onetar# consideration "!ere
t!e p'.&ic o$$icer !as t!e a't!orit# to intervene 'nder t!e &a".r
And, second&#, it does not !e&p t!e State an# t!at t!e ter, transaction as 'sed in Section (7.8 o$ Rep'.&ic
Act No. (2)* is s'scepti.&e o$ .ein% interpreted .ot! restrictive&# and &i.era&&#, considerin% t!at &a"s
creatin%, de$inin% or p'nis!in% cri,es and &a"s i,posin% pena&ties and $or$eit'res are to .e constr'ed
strict&# a%ainst t!e State or a%ainst t!e part# see:in% to en$orce t!e,, and &i.era&&# a%ainst t!e part#
so'%!t to .e c!ar%ed.+;
C&ear&#, t!e Sandi%an.a#an did not ar.itrari&#, or "!i,sica&&#, or capricio's&# <'as! t!e in$or,ation $or
$ai&in% to proper&# state t!e $o'rt! e&e,ent o$ t!e vio&ation o$ Section (7.8 o$ Rep'.&ic Act No. (2)*.
6.
G.R. No. )+*2;(
T!e Sandi%an.a#an did not co,,it an# %rave a.'se o$ discretion in $indin% t!at t!ere !ad .een an
inordinate de&a# in t!e reso&'tion a%ainst respondents o$ t!e c!ar%e in Cri,ina& Case No. S6G2+GCRMG
23;;
Upon its $indin% t!at t!e O$$ice o$ t!e O,.'ds,an !ad inc'rred inordinate de&a# in reso&vin% t!e co,p&aint
Con%. Ci,eneJ !ad .ro'%!t a%ainst t!e respondents, t!e Sandi%an.a#an dis,issed Cri,ina& Case No.
S6G2+GCRMG23;; ,ain&# to 'p!o&d t!eir constit'tiona& ri%!t to t!e speed# disposition o$ t!eir case.
6't no" co,es t!e State contendin% t!at t!e de&a# in t!e reso&'tion o$ t!e case a%ainst t!e respondents
"as neit!er inordinate nor so&e&# attri.'ta.&e to t!e O$$ice o$ t!e O,.'ds,an. Citin% MendoJaGOn% v.
Sandi%an.a#an,+- in "!ic! t!e Co'rt !e&d t!at speed# disposition o$ cases "as a&so consistent "it!
reasona.&e de&a#s, t!e State s'pported its contention .# &istin% t!e vario's incidents t!at !ad ca'sed t!e
de&a# in t!e investi%ation, and t!en &a#in% part o$ t!e .&a,e on t!e respondents t!e,se&ves.
T!e ri%!t to t!e speed# disposition o$ cases is ens!rined in Artic&e III o$ t!e Constit'tion, "!ic!
dec&aresc!anRo.&esvirt'a&La"&i.rar#
Section );. A&& persons s!a&& !ave t!e ri%!t to a speed# disposition o$ t!eir cases .e$ore a&& 5'dicia&, <'asiG
5'dicia&, or ad,inistrative .odies.
T!e constit'tiona& ri%!t to a speed# disposition o$ cases is not &i,ited to t!e acc'sed in cri,ina&
proceedin%s .'t e9tends to a&& parties in a&& cases, inc&'din% civi& and ad,inistrative cases, and in a&&
proceedin%s, inc&'din% 5'dicia& and <'asiG5'dicia& !earin%s.++ =!i&e t!e concept o$ speed# disposition is
re&ative or $&e9i.&e, s'c! t!at a ,ere ,at!e,atica& rec:onin% o$ t!e ti,e invo&ved is not s'$$icient,+* t!e
ri%!t to t!e speed# disposition o$ a case, &i:e t!e ri%!t to speed# tria&, is dee,ed vio&ated "!en t!e
proceedin%s are attended .# ve9atio's, capricio's, and oppressive de&a#sD or "!en 'n5'sti$ied
postpone,ents o$ t!e tria& are as:ed $or and sec'redD or "!en "it!o't ca'se or 5'sti$ia.&e ,otive a &on%
period o$ ti,e is a&&o"ed to e&apse "it!o't t!e part# !avin% !is case tried.*2
Accordin% to An%c!onco, Cr. v. O,.'ds,an,*) inordinate de&a# in reso&vin% a cri,ina& co,p&aint, .ein%
vio&ative o$ t!e constit'tiona&&# %'aranteed ri%!t to d'e process and to t!e speed# disposition o$ cases,
"arrants t!e dis,issa& o$ t!e cri,ina& case.*3
=as t!e de&a# on t!e part o$ t!e O$$ice o$ t!e O,.'ds,an ve9atio's, capricio's, and oppressiveR
=e ans"er in t!e a$$ir,ative.
T!e acts o$ t!e respondents t!at t!e O$$ice o$ t!e O,.'ds,an investi%ated !ad s'pposed&# occ'rred in
t!e period $ro, Fe.r'ar# )(, 322) to Fe.r'ar# 3(, 322). Bet, t!e cri,ina& co,p&aint ca,e to .e initiated
on&# on Nove,.er 30, 3223 "!en O,.'ds,an Marce&o re<'ested PAGC to provide !is o$$ice "it! t!e
doc',ents re&evant to t!e e9post o$ Con%. Ii&&ara,a. S'.se<'ent&#, on @ece,.er 3(, 3223, Con%.
Ci,eneJ s'.,itted !is co,p&aintGa$$idavit to t!e O$$ice o$ t!e O,.'ds,an. It "as on&# on Nove,.er ;,
322;, !o"ever, "!en t!e Specia& Pane& created to investi%ate Con%. Ci,eneJ/s cri,ina& co,p&aint iss'ed
t!e Coint Reso&'tion reco,,endin% t!at t!e cri,ina& in$or,ations .e $i&ed a%ainst t!e respondents.
O,.'ds,an G'tierreJ approved t!e Coint Reso&'tion on&# on Can'ar# 0, 322-.*( T!e Specia& Pane&
iss'ed t!e second Coint Reso&'tion den#in% t!e respondents/ ,otion $or reconsideration on Can'ar# 30,
322+, and O,.'ds,an G'tierreJ approved t!is reso&'tion on&# on Apri& )0, 322+. U&ti,ate&#, t!e
in$or,ations c!ar%in% t!e respondents "it! $o'r di$$erent cri,es .ased on t!e co,p&aint o$ Con%. Ci,eneJ
"ere a&& $i&ed on Apri& )0, 322+, t!ere.# &eadin% to t!e co,,ence,ent o$ Cri,ina& Case No. S6G2+G
CRMG23;0 and Cri,ina& Case No. S6G2+GCRMG23;;. In s',, t!e $actG$indin% investi%ation and
pre&i,inar# investi%ation .# t!e O$$ice o$ t!e O,.'ds,an &asted near&# $ive #ears and $ive ,ont!s.
It is c&ear $ro, t!e $ore%oin% t!at t!e O$$ice o$ t!e O,.'ds,an !ad ta:en an 'n's'a&&# &on% period o$ ti,e
5'st to investi%ate t!e cri,ina& co,p&aint and to deter,ine "!et!er to cri,ina&&# c!ar%e t!e respondents in
t!e Sandi%an.a#an. S'c! &on% de&a# "as inordinate and oppressive, and constit'ted 'nder t!e pec'&iar
circ',stances o$ t!e case an o'tri%!t vio&ation o$ t!e respondents/ ri%!t 'nder t!e Constit'tion to t!e
speed# disposition o$ t!eir cases. I$, in Tatad v. Sandi%an.a#an,*4 t!e Co'rt r'&ed t!at a de&a# o$ a&,ost
t!ree #ears in t!e cond'ct o$ t!e pre&i,inar# investi%ation constit'ted a vio&ation o$ t!e constit'tiona& ri%!ts
o$ t!e acc'sed to d'e process and to t!e speed# disposition o$ !is case, ta:in% into acco'nt t!e $o&&o"in%,
na,e&# 7a8 t!e co,p&aint !ad .een res'rrected on&# a$ter t!e acc'sed !ad a $a&&in% o't "it! $or,er
President Marcos, indicatin% t!at po&itica& ,otivations !ad p&a#ed a vita& ro&e in activatin% and prope&&in%
t!e prosec'toria& processD 7.8 t!e Tanod.a#an !ad .&atant&# departed $ro, t!e esta.&is!ed proced're
prescri.ed .# &a" $or t!e cond'ct o$ pre&i,inar# investi%ationD and 7c8 t!e si,p&e $act'a& and &e%a& iss'es
invo&ved did not 5'sti$# t!e de&a#, t!ere is a %reater reason $or 's to !o&d so in t!e respondents/ case.
To e,p!asiJe, it is inc',.ent $or t!e State to prove t!at t!e de&a# "as reasona.&e, or t!at t!e de&a# "as
not attri.'ta.&e to it. In .ot! re%ards, t!e State ,isera.&# $ai&ed.
For one, t!e State e9p&ains t!at t!e cri,ina& cases co'&d not .e i,,ediate&# $i&ed in co'rt pri,ari&#
.eca'se o$ t!e ins'$$icienc# o$ t!e evidence to esta.&is! pro.a.&e ca'se, &i:e not !avin% a doc',ent
s!o"in% t!at t!e $'nds 7"ort! USu),***,*;0.22 as averred in t!e co,p&aint o$ Con%. Ci,eneJ8 !ad
reac!ed Secretar# PereJD*0 and t!at it co'&d not o.tain t!e doc',ent, and to ena.&e it to o.tain t!e
doc',ent and ot!er evidence it needed to a"ait t!e rati$ication o$ t!e A%ree,ent Concernin% M't'a&
Le%a& Assistance in Cri,ina& Matters "it! t!e Hon%:on% Specia& Ad,inistrative Re%ion 7RPGHNSAR
A%ree,ent8,*; and t!e Treat# on M't'a& Le%a& Assistance in Cri,ina& Matters .et"een t!e Rep'.&ic o$
t!e P!i&ippines and t!e S"iss Con$ederation 7RPGS"iss MLAT8.*-
To 's, !o"ever, t!e State/s dependence on t!e rati$ication o$ t!e t"o treaties "as not a s'$$icient
5'sti$ication $or t!e de&a#. T!e $actG$indin% investi%ation !ad e9tended $ro, Can'ar# )0, 322(, "!en
O,.'ds,an Marce&o approved t!e reco,,endation o$ t!e Specia& Pane& and re$erred t!e co,p&aint o$
Con%. Ci,eneJ $or $actG$indin% investi%ation, 'nti& Nove,.er )4, 3220, "!en t!e FIO co,p&eted its $actG
$indin% investi%ation. T!at period acco'nted $or a tota& o$ t"o #ears and )2 ,ont!s. In addition, t!e FIO
s'.,itted its report on&# on Nove,.er )4, 3220, "!ic! "as a$ter t!e @epart,ent o$ C'stice !ad received
on Septe,.er +, 3220 t!e &etter $ro, =a#ne =a&s!, t!e @ep't# Govern,ent Co'nse& o$ t!e Hon%:on%
Specia& Ad,inistrative Re%ion in response to t!e re<'est $or assistance dated C'ne 3(, 3220,*+ and t!e
rep&# o$ t!e O$$ice o$ C'stice o$ S"itJer&and dated Fe.r'ar# )2, 3220 and a s'.se<'ent &etter dated
Fe.r'ar# 3), 3220 $ro, LiJa Favre, t!e A,.assador o$ S"itJer&and, to Att#. Me&c!or Art!'r Carandan%,
Actin% Assistant O,.'ds,an, FIO, to%et!er "it! doc',ents pertainin% to t!e .an: acco'nts re&evant to
t!e investi%ation.** For t!e O$$ice o$ t!e O,.'ds,an to ,ar: ti,e 'nti& t!e HNSAR A%ree,ent and t!e
S"issGRP MLAT "ere rati$ied .# t!e Senate .e$ore it "o'&d proceed "it! t!e pre&i,inar# investi%ation
"as oppressive, capricio's and ve9atio's, .eca'se t!e respondents "ere t!ere.# s'.5ected to a &on% and
'n$air de&a#.
=e s!o'&d $ro"n on t!e reason $or t!e inordinate de&a# .eca'se t!e State "o'&d t!ere.# de&i.erate&# %ain
an advanta%e over t!e respondents d'rin% t!e pre&i,inar# investi%ation. At no ti,e s!o'&d t!e pro%ress
and s'ccess o$ t!e pre&i,inar# investi%ation o$ a cri,ina& case .e ,ade dependent 'pon t!e rati$ication o$
a treat# .# t!e Senate t!at "o'&d provide to t!e prosec'toria& ar, o$ t!e State, a&read# po"er$'& and
over"!e&,in% in ter,s o$ its reso'rces, an 'nd'e advanta%e 'navai&a.&e at t!e ti,e o$ t!e investi%ation.
To a&&o" t!e de&a# 'nder t!ose ter,s "o'&d de$inite&# vio&ate $air p&a# and n'&&i$# d'e process o$ &a" G $air
p&a#, .eca'se t!e $ie&d o$ contest .et"een t!e acc'ser and t!e acc'sed s!o'&d at a&& ti,es .e &eve&D and
d'e process o$ &a", .eca'se no &ess t!at o'r Constit'tion %'arantees t!e speed# disposition o$ t!e case.
T!e State $'rt!er ar%'es t!at t!e $actG$indin% investi%ation s!o'&d not .e considered a part o$ t!e
pre&i,inar# investi%ation .eca'se t!e $or,er "as on&# preparator# in re&ation to t!e &atterD)22 and t!at t!e
period spent in t!e $or,er s!o'&d not .e $actored in t!e co,p'tation o$ t!e period devoted to t!e
pre&i,inar# investi%ation.
T!e ar%',ent cannot pass $air scr'tin#.
T!e %'arantee o$ speed# disposition 'nder Section ); o$ Artic&e III o$ t!e Constit'tion app&ies to a&& cases
pendin% .e$ore a&& 5'dicia&, <'asiG5'dicia& or ad,inistrative .odies. T!e %'arantee "o'&d .e de$eated or
rendered in'ti&e i$ t!e !airGsp&ittin% distinction .# t!e State is accepted. =!et!er or not t!e $actG$indin%
investi%ation "as separate $ro, t!e pre&i,inar# investi%ation cond'cted .# t!e O$$ice o$ t!e O,.'ds,an
s!o'&d not ,atter $or p'rposes o$ deter,inin% i$ t!e respondents/ ri%!t to t!e speed# disposition o$ t!eir
cases !ad .een vio&ated.
T!ere "as rea&&# no s'$$icient 5'sti$ication tendered .# t!e State $or t!e &on% de&a# o$ ,ore t!an $ive #ears
in .rin%in% t!e c!ar%es a%ainst t!e respondents .e$ore t!e proper co'rt. On t!e c!ar%e o$ ro..er# 'nder
Artic&e 3*( in re&ation to Artic&e 3*4 o$ t!e Revised Pena& Code, t!e pre&i,inar# investi%ation "o'&d not
re<'ire ,ore t!an $ive #ears to ascertain t!e re&evant $act'a& and &e%a& ,atters. T!e .asic e&e,ents o$ t!e
o$$ense, t!at is, t!e inti,idation or press're a&&e%ed&# e9erted on Con%. Ci,eneJ, t!e ,anner .# "!ic! t!e
,one# e9torted !ad .een de&ivered, and t!e respondents !ad .een identi$ied as t!e perpetrators, !ad
.een ade<'ate&# .ared .e$ore t!e O$$ice o$ t!e O,.'ds,an. T!e o.tention o$ t!e .an: doc',ents "as
not indispensa.&e to esta.&is! pro.a.&e ca'se to c!ar%e t!e, "it! t!e o$$ense. =e t!'s a%ree "it! t!e
$o&&o"in% o.servation o$ t!e Sandi%an.a#an, viJc!anRo.&esvirt'a&La"&i.rar#
=it! t!e O,.'ds,an/s $indin% t!at t!e e9tortion 7inti,idation8 "as perpetrated on Fe.r'ar# )(, 322) and
t!at t!ere "as trans$er o$ Mar: Ci,eneJ US u),***,*;0.22 to Co'tts 6an: Acco'nt HO )((-2; on
Fe.r'ar# 3(, 322) in $avor o$ t!e acc'sed, t!ere is no reason "!# "it!in a reasona.&e period $ro, t!ese
dates, t!e co,p&aint s!o'&d not .e reso&ved. T!e act o$ inti,idation "as t!ere, t!e asportation "as
co,p&ete as o$ Fe.r'ar# 3(, 322) "!# "as t!e in$or,ation $i&ed on&# on Apri& )+, 322+. For s'c! a si,p&e
c!ar%e o$ Ro..er# t!ere is not!in% ,ore to consider and a&& t!e $acts and circ',stances 'pon "!ic! to
anc!or a reso&'tion "!et!er to %ive d'e co'rse to t!e co,p&aint or dis,iss it are on !and. T!e case is
,ore t!an ripe $or reso&'tion. Fai&'re to act on t!e sa,e is a c&ear trans%ression o$ t!e constit'tiona& ri%!ts
o$ t!e acc'sed. A !ea&t!# respect $or t!e constit'tiona& prero%ative o$ t!e acc'sed s!o'&d !ave prodded
t!e O,.'ds,an to act "it!in reasona.&e ti,e.)2)C!anRo.&esIirt'a&a"&i.rar#
In $ine, t!e O$$ice o$ t!e O,.'ds,an trans%ressed t!e respondents/ ri%!t to d'e process as "e&& as t!eir
ri%!t to t!e speed# disposition o$ t!eir case.
=HEREFORE, t!e Co'rt @ISMISSES t!e petitions $or certiorari $or t!eir &ac: o$ ,erit.