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2005 BAR QUESTIONS

Treaty have been complied with. It took effect in 1990. The


Australian government is requesting the Philippine
government to extradite its citizen, Gibson, who has
committed in his country the indictable offense of Obtaining
Property by Deception in 1985. The said offense is among
those enumerated as extraditable in the Treaty. For his
defense, Gibson asserts that the retroactive application of the
extradition treaty amounts to an ex post facto law. Rule on
Gibsons contention. (5%)

POLITICAL AND PUBLIC INTERNATIONAL LAW


-I(a) The present Constitution introduced the concepts and
processes of Initiative and Referendum. Compare and
differentiate one from the other. (3%)

- III -

(b) To give the much needed help to the Province of Aurora


which was devastated by typhoons and torrential rains, the
President declared it in a state of calamity. Give at least
four (4) legal effects of such declaration. (4%)

(1.) Italy, through its Ambassador, entered into a contract


with Abad for the maintenance and repair of specified
equipment at its Embassy and Ambassadors Residence, such
as air conditioning units, generator sets, electrical facilities,
water heaters, and water motor pumps. It was stipulated that
the agreement shall be effective for a period of four years and
automatically renewed unless cancelled. Further, it provided
that any suit arising from the contract shall be filed with the
proper courts in the City of Manila. Claiming that the
Maintenance Contract was unilaterally, baselessly and
arbitrarily terminated, Abad sued the State of Italy and its
Ambassador before a court in the City of Manila. Among the
defenses they raised were sovereign immunity and
diplomatic immunity.

(c) Enumerate the rights of the coastal state in the exclusive


economic zone. (3%)
- II (1.) Police Officer Henry Magiting of the Narcotics Section of
the Western Police District applied for a search warrant in the
Regional Trial Court of Manila for violation of Section 11,
Article II (Possession of Prohibited Drugs) of Republic Act
(R.A.) No. 9165 (Comprehensive Dangerous Drugs Act of
2002) for the search and seizure of heroin in the cabin of the
Captain of the MSS Seastar, a foreign-registered vessel which
was moored at the South Harbor, Manila, its port of
destination. Based on the affidavits of the applicants
witnesses who were crew members of the vessel, they saw a
box containing ten (10) kilograms of heroin under the bed in
the Captains cabin. The RTC found probable cause for the
issuance of a search warrant; nevertheless, it denied the
application on the ground that Philippine courts have no
criminal jurisdiction over violations of R.A. No. 9165
committed on foreign-registered vessels found in Philippine
waters. Is the ruling of the court correct? Support your answer
with reasons. (5%)

(a) As counsel of Abad, refute the defenses of sovereign


immunity and diplomatic immunity raised by the State of
Italy and its Ambassador.
(b) At any rate, what should be the courts ruling on the said
defenses? (5%)
(2.) Adams and Baker are American citizens residing in the
Philippines. Adams befriended Baker and became a frequent
visitor at his house. One day, Adams arrived with 30 members
of the Philippine National Police, armed with a Search Warrant
authorizing the search of Bakers house and its premises for
dangerous drugs being trafficked to the United States of
America. The search purportedly yielded positive results, and
Baker was charged with Violation of the Dangerous Drugs Act.
Adams was the prosecutions principal witness. However, for
failure to prove his guilt beyond reasonable doubt, Baker was
acquitted. Baker then sued Adams for damages for filing

(2.) The Philippines and Australia entered into a Treaty of


Extradition concurred in by the Senate of the Philippines on
September 10, 1990. Both governments have notified each
other that the requirements for the entry into force of the

trumped-up charges against him. Among the defenses raised


by Adams is that he has diplomatic immunity, conformably
with the Vienna Convention on Diplomatic Relations. He
presented Diplomatic Notes from the American Embassy
stating that he is an agent of the United States Drug
Enforcement Agency tasked with conducting surveillance
operations on suspected drug dealers in the Philippines
believed to be the source of prohibited drugs being shipped to
the U.S. It was also stated that after having ascertained the
target, Adams would then inform the Philippine narcotic
agents to make the actual arrest.

(2.) In March 2001, while Congress was adjourned, the


President appointed Santos as Chairman of the Commission
on Elections. Santos immediately took his oath and assumed
office. While his appointment was promptly submitted to the
Commission on Appointments for confirmation, it was not
acted upon and Congress again adjourned. In June 2001, the
President extended a second ad interim appointment to
Santos for the same position with the same term, and this
appointment was again submitted to the Commission on
Appointments for confirmation. Santos took his oath anew
and performed the functions of his office. Reyes, a political
rival, filed a suit assailing certain orders issued by Santos. He
also questioned the validity of Santos appointment. Resolve
the following issues:cralaw

(a) As counsel of plaintiff Baker, argue why his complaint


should not be dismissed on the ground of defendant Adams
diplomatic immunity from suit.
(b) As counsel of defendant Adams, argue for the dismissal of
the complaint. (5%)

(a) Does Santos assumption of office on the basis of the ad


interim appointments issued by the President amount to a
temporary appointment which is prohibited by Section 1(2),
Article IX-C of the Constitution?

- IV (1.) Squatters and vendors have put up structures in an area


intended for a Peoples Park, which are impeding the flow of
traffic in the adjoining highway. Mayor Cruz gave notice for
the structures to be removed, and the area vacated within a
month, or else, face demolition and ejectment. The occupants
filed a case with the Commission on Human Rights (CHR) to
stop the Mayors move. The CHR then issued an order to
desist against Mayor Cruz with warning that he would be
held in contempt should he fail to comply with the desistance
order. When the allotted time lapsed,

(b) Assuming the legality of the first ad interim appointment


and assumption of office by Santos, were his second ad
interim appointment and subsequent assumption of office to
the same position violations of the prohibition on
reappointment under Section 1(2), Article IX-C of the
Constitution? (5%)
-V(1.) Bruno still had several years to serve on his sentence
when he was conditionally pardoned by the President. Among
the conditions imposed was that he would not again violate
any of the penal laws of the Philippines. Bruno accepted all
of the conditions and was released. Shortly thereafter, Bruno
was charged with 20 counts of estafa. He was then
incarcerated to serve the unexpired portion of his sentence
following the revocation by the President of the pardon.
Brunos family filed a petition for habeas corpus, alleging that
it was error to have him recommitted as the charges were
false, in fact, half of them were already dismissed. Resolve
the petition with reasons. (4%)

Mayor Cruz caused the demolition and removal of the


structures. Accordingly, the CHR cited him for contempt.
(a) What is your concept of Human Rights? Does this case
involve violations of human rights within the scope of the
CHRs jurisdiction?
(b) Can the CHR issue an order to desist or restraining
order?
(c) Is the CHR empowered to declare Mayor Cruz in contempt?

(2.) Ricardo was elected Dean of the College of Education in a


State University for a term of five (5) years unless sooner

Does it have contempt powers at all? (5%)

terminated. Many were not pleased with his performance. To


appease those critical of him, the President created a new
position, that of Special Assistant to the President with the
rank of Dean, without reduction in salary, and appointed
Ricardo to said position in the interest of the service.
Contemporaneously, the University President appointed
Santos as Acting Dean in place of Ricardo.

- VII (1.) State with reason(s) whether bail is a matter of right or a


matter of discretion in the following cases: (a) The imposable
penalty for the crime charged is reclusion perpetua and the
accused is a minor; (b) The imposable penalty for the crime
charged is life imprisonment and the accused is a minor; (c)
The accused has been convicted of homicide on a charge of
murder and sentenced to suffer an indeterminate penalty of
from eight (8) years and one (1) day of prision mayor, as
minimum, to twelve (12) years and four (4) months of
reclusion temporal, as maximum. (4%)

(a) Does the phrase unless sooner terminated mean that


the position of Ricardo is terminable at will?
(b) Was Ricardo removed from his position as Dean of the
College of Education or merely transferred to the position of
Special Assistant to the President? Explain. (5%)

(2.) State with reason(s) which of the following is a


government agency or a government instrumentality:cralaw

(3.) Pedro Masipag filed with the Ombudsman a complaint


against RTC Judge Jose Palacpac with violation of Article 204
of the Revised Penal Code for knowingly rendering an unjust
judgment in Criminal Case No. 617. Judge Palacpac filed a
motion with the Ombudsman to refer the complaint to the
Supreme Court to determine whether an administrative
aspect was involved in the said case. The Ombudsman denied
the motion on the ground that no administrative case against
Judge Palacpac relative to the decision in Criminal Case No.
617 was filed and pending in his office. State with reasons
whether the Ombudsmans ruling is correct. (4%)

(a) Department of Public Works and Highway;


(b) Bangko Sentral ng Pilipinas;
(c) Philippine Ports Authority;
(d) Land Transportation Office;
(e) Land Bank of the Philippines. (5%)

- VI -

- VIII -

(1.) The two accepted tests to determine whether or not there


is a valid delegation of legislative power are the
Completeness Test and the Sufficient Standard Test. Explain
each. (4%) (2.) Section 32 of Republic Act No. 4670 (The
Magna Carta for Public School Teachers) reads: Sec. 32. Penal
Provision.A person who shall willfully interfere with, restrain
or coerce any teacher in the exercise of his rights guaranteed
by this Act or who shall in any other manner commit any act
to defeat any of the provisions of this Act shall, upon
conviction, be punished by a fine of not less than one
hundred pesos nor more than one thousand pesos, or by
imprisonment, in the discretion of the court.

(1.) Mariano was arrested by the NBI as a suspect in the


shopping mall bombings. Advised of his rights, Mariano asked
for the assistance of his relative, Atty. Santos. The NBI noticed
that Atty. Santos was inexperienced, incompetent and
inattentive. Deeming him unsuited to protect the rights of
Mariano, the NBI dismissed Atty. Santos. Appointed in his
place was Atty. Barroso, a bar topnotcher who was in the
premises visiting a relative. Atty. Barroso ably assisted
Mariano when the latter gave a statement. However, Mariano
assailed the investigation claiming that he was deprived of
counsel of his choice.
Was the NBI correct in dismissing Atty. Santos and appointing
Atty. Barroso in his stead?

Is the proviso granting the court the authority to impose a


penalty of imprisonment in its discretion constitutional?
Explain briefly. (4%)

Is Marianos statement, made with the assistance of Atty.


Barroso, admissible in evidence? (5%)

already served for three consecutive terms as Mayor. The


petition was not timely acted upon, and Manuel was
proclaimed the winner with 20,000 votes over the 10,000
votes received by Reyes as the only other candidate. It was
only after Manuel took his oath and assumed office that the
COMELEC ruled that he was disqualified for having ran and
served for three consecutive terms.

(2.) Emilio had long suspected that Alvin, his employee, had
been passing trade secrets to his competitor, Randy, but he
had no proof. One day, Emilio broke open the desk of Alvin
and discovered a letter wherein Randy thanked Alvin for
having passed on to him vital trade secrets of Emilio.
Enclosed in the letter was a check for P50,000.00 drawn
against the account of Randy and payable to Alvin. Emilio
then dismissed Alvin from his employment. Emilios proof of
Alvins perfidy are the said letter and check which are
objected to as inadmissible for having been obtained through
an illegal search. Alvin filed a suit assailing his dismissal.

(a) As lawyer of Manuel, present the possible arguments to


prevent his disqualification and removal.
(b) How would you rule on whether or not Manuel is eligible to
run as Mayor of the newly-created City of Tuba immediately
after having already served for three (3) consecutive terms as
Mayor of the Municipality of Tuba?

Rule on the admissibility of the letter and check. (5%)

(c) Assuming that Manuel is not an eligible candidate, rebut


Reyes claim that he should be proclaimed as winner having
received the next higher number of votes. (5%)

- IX (1.) In the May 8, 1995 elections for local officials whose


terms were to commence on June 30, 1995, Ricky filed on
March 20, 1995 his certificate of candidacy for the Office of
Governor of Laguna. He won, but his qualifications as an
elected official was questioned. It is admitted that he is a
repatriated Filipino citizen and a resident of the Province of
Laguna. To be qualified for the office to which a local official
has been elected, when at the latest should he be:cralaw

-X(1.) There was a boundary dispute between Dueas, a


municipality, and Passi, an independent component city, both
of the same province. State how the two local government
units should settle their boundary dispute. (5%)
(2.) The Sangguniang Bayan of the Municipality of Santa,
Ilocos Sur passed Resolution No. 1 authorizing its Mayor to
initiate a petition for the expropriation of a lot owned by
Christina as site for its municipal sports center. This was
approved by the Mayor. However, the Sangguniang
Panlalawigan of Ilocos Sur disapproved the Resolution as
there might still be other available lots in Santa for a sports
center. Nonetheless, the Municipality of Santa, through its
Mayor, filed a complaint for eminent domain. Christina
opposed this on the following grounds:cralaw

(a) A Filipino Citizen? Explain.


(b) A resident of the locality? Explain. (5%)
(2.) Manuel was elected Mayor of the Municipality of Tuba in
the elections of 1992, 1995 and 1998. He fully served his first
two terms, and during his third term, the municipality was
converted into the component City of Tuba. The said charter
provided for a hold-over and so without interregnum Manuel
went on to serve as the Mayor of the City of Tuba. In the 2001
elections, Manuel filed his certificate of candidacy for City
Mayor. He disclosed, though, that he had already served for
three consecutive terms as elected Mayor when Tuba was still
a municipality. He also stated in his certificate of candidacy
that he is running for the position of Mayor for the first time
now that Tuba is a city. Reyes, an adversary, ran against
Manuel and petitioned that he be disqualified because he had

(a) the Municipality of Santa has no power to expropriate;


(b) Resolution No. 1 has been voided since the Sangguniang
Panlalawigan disapproved it for being arbitrary; and
(c) the Municipality of Santa has other and better lots for that
purpose. Resolve the case with reasons. (5%)

LABOR AND SOCIAL LEGISLATION

Was the Little Hands Garments Company within its rights to


withdraw this benefit which it had unilaterally been providing
to its employees?

-I-

Select the best answer(s) and briefly explain your reason(s)


therefor.

(1.) As Human Resources Department (HRD) manager of EZ


Components, an unorganized manufacturer of electric and
electronic components for household appliances, you are
suddenly confronted with demands for recognition and
collective bargaining negotiations from two competing labor
unions. They both claim to represent all the rank-and-file
employees. Union A is led by a moderate faction, while Union
B is affiliated with a militant federation identified with leftist
ideology.

(a) Yes, because it can withdraw a benefit that is unilaterally


given;
(b) Yes, because it is suffering losses for the first time;
(c) Yes, because this is a management prerogative which is
not due to any legal or contractual obligation;

Which of the following courses of action should you take to


best protect the interests of your company and employees?

(d) No, because this amounts to a diminution of benefits


which is prohibited by the Labor Code;

(a) Recognize Union A as the rightful bargaining


representative because it will be more reasonable to deal
with;

(e) No, because it is a fringe benefit that has already ripened


into a demandable right or entitlement. (10%)
- II -

(b) Recognize Union B because you do not want to antagonize


its leftist connections and foment inter-union conflicts;

(1.) During the open forum following your lecture to a group


of managers and HRD personnel, you were asked the
following questions:cralaw

(c) Ignore the demands of either union since you cannot be


compelled legally to deal with them at this stage; or

(a) What qualifying circumstances will convert illegal


recruitment to economic sabotage, thus subjecting its
perpetrator or perpetrators to a penalty of life imprisonment
and a fine of at least P500,000.00? (3%)

(d) Petition the Bureau of Labor Relations to conduct a


certification election to determine which union really
represents the majority of the employees in the bargaining
unit; (10%)

(b) Is the commission of an unfair labor practice by an


employer subject to criminal prosecution? (3%)

(2.) Little Hands Garment Company, an unorganized


manufacturer of childrens apparel with around 1,000
workers, suffered losses for the first time in history when its
US and European customers shifted their huge orders to
China and Bangladesh. The management informed its
employees that it could no longer afford to provide
transportation shuttle services. Consequently, it announced
that a nominal fare would be charged depending on the
distance traveled by the workers availing of the service.

(c) How are the portability provisions of Republic Act No.


7699 beneficial or advantageous to SSS and GSIS members in
terms of their creditable employment services in the private
sector or the government, as the case may be, for purposes
of death, disability or retirement? (3%)
Please explain your answers briefly.
(2.) Mariano Martillo was a mason employed by the ABC
Construction Company. Every time that ABC had a project, it

would enter into an employment contract with Martillo for a


fixed period that coincided with the need for his services,
usually for a duration of three to six months.

(2.) Mans Weto had been an employee of Nopolt Assurance


Company for the last ten (10) years. His wife of six (6) years
died last year. They had four (4) children. He then fell in love
with Jovy, his co-employee, and they got married. In October
this year, Wetos new wife is expected to give birth to her first
child. He has accordingly filed his application for paternity
leave, conformably with the provisions of the Paternity Leave
Law which took effect in 1996. The HRD manager of the
assurance firm denied his application, on the ground that
Weto had already used up his entitlement under that law.
Weto argued that he has a new wife who will be giving birth
for the first time, therefore, his entitlement to paternity leave
benefits would begin to run anew.

Since the last project involved the construction of a 40-storey


building, Martillo was contracted for 14 months. During this
period, ABC granted wage increases to its regular employees,
composed mostly of engineers and rank-and-file construction
workers as a result of the just concluded CBA negotiations.
Feeling aggrieved and discriminated against, Martillo and
other similarly-situated project workers demanded that the
increases be extended to them, inasmuch as they should now
be considered regular employees and members of the
bargaining unit.

(a) Whose contention is correct, Weto or the HRD manager?

(a) If you were ABCs legal counsel, how would you respond to
this demand?

(b) Is Jovy entitled to maternity leave benefits? (6%)

(b) How is a project worker different from a casual or


contractual worker?

- IV (1.) Malyn Vartan is a well-known radio-TV talk show host. She


signed a contract with XYZ Entertainment Network to host a
one-hour daily talk show where she interviews various
celebrities on topical subjects that she herself selects. She
was paid a monthly remuneration of P300,000.00. The
program had been airing for almost two years when sponsors
advertising revenues dwindled, constraining the network to
cancel the show upon the expiration of its latest contract with
Ms. Vartan. The talk-show host protested the discontinuance
of her monthly talent fee, claiming that it was tantamount to
her illegal dismissal from the network since she has already
attained the status of a regular employee.

Briefly explain your answers. (6%)


- III (1.) Antonio Antuquin, a security guard, was caught sleeping
on the job while on duty at the Yosi Cigarette Factory. As a
result, he was dismissed from employment by the Wagan
Security Agency, an independent contractor. At the time of his
dismissal, Antonio had been serving as a watchman in the
factory for many years, often at stretches of up to 12 hours,
even on Sundays and holidays, without overtime, nighttime
and rest day benefits. He thereafter filed a complaint for
illegal dismissal and non-payment of benefits against Yosi
Cigarette Factory, which he claimed was his actual and direct
employer.

(a) As the networks legal counsel, how would you justify its
decision to cancel Ms. Vartans program which in effect
terminated her services in the process?

As the Labor Arbiter assigned to hear the case, how would


you correctly resolve the following:cralaw

(b) As counsel for the talk-show host, how would you argue
your case? (6%)

(a) Antonios charge of illegal dismissal; and

-V-

(b) Antonios claim for overtime and other benefits. (6%)

During the open forum following your lecture before members


of various unions affiliated with a labor federation, you were
asked the following questions:cralaw

completed at least ten (10) years of service would be


compulsorily retired and paid 30 days pay for every year of
service.

(a) Araw ng Kagitingan and Good Friday are among the 10


paid regular holidays under Article 94 of the Labor Code. How
much will an employee receive when both holidays fall on the
same day? (4%)

Ricky Marvin, whose immigrant visa to the USA had just been
approved, celebrated his 60th birthday recently. He decided
to retire and move to California where the son who petitioned
him had settled. The company refused to grant him any
retirement benefits on the ground that he had not yet
attained the compulsory retirement age of 65 years as
required by its personnel policy; moreover, it did not have a
policy on optional or early retirement.

(b) May a rank-and-file employee, who is not a member of the


union representing his bargaining unit, avail of the wage
increases which the union negotiated for its members? (4%)
(c) What is meant by payroll reinstatement and when does
it apply? (4%)
(d) Under what conditions may a compressed work week
schedule be legally authorized as an exception to the eighthour a day requirement under the Labor Code? (4%)

Taking up the cudgels for Ricky Marvin, the union raised the
issue in the grievance machinery as stipulated in the CBA. No
settlement was arrived at, and the matter was referred to
voluntary arbitration.

State your answers and your reasons therefor.

If you were the Voluntary Arbitrator, how would you decide?


Briefly explain the reasons for your award. (5%)

- VI -

(2.) Carissa, a comely bank teller, was due for her


performance evaluation which is conducted every six months.
A rating of outstanding is rewarded with a merit increase.
She was given a below average rating in the last two
periods. According to the banks personnel policy, a third
rating of below average will result in termination. Mr. Perry
Winkle called Carissa into his office a few days before
submitting her performance ratings. He invited her to spend
the night with him in his rest house. She politely declined.
Undaunted, Mr. Winkle renewed his invitation, and Carissa
again declined. He then warned her to watch out because
she might regret it later on. A few days later, Carissa found
that her third and last rating was again below
average.chanroblesvirtualawlibrary

A group of employees in XYZ Factory belonging to a religious


sect, in conformity with the teachings and dictates of their
religion, refused to join the labor union in the factory. The
labor union was able to negotiate a substantial wage increase
in its collective bargaining agreement with management. A
provision therein stated that the wage increase would be paid
to the members of the union only in view of a closed shop
union security clause in the new agreement. The members of
the sect protested and demanded that the wage increase be
extended to them. The officers of the union countered by
demanding their termination from the company pursuant to
the closed shop provision in the just-concluded CBA.
(a) Is the CBA provision valid?

Carissa then filed a complaint for sexual harassment against


Mr. Winkle with the Department of Labor and Employment. In
his counter-affidavit, he claimed that he was enamored with
Carissa. He denied having demanded, much less received any
sexual favors from her in consideration of giving her an
outstanding rating. He also alleged that the complaint was
premature because Carissa failed to refer the matter to the
Committee on Decorum and Discipline for investigation and
resolution before the case against him was filed. In her reply

(b) Should the company comply with the unions demand of


terminating the members of the religious sect? (6%)
- VII (1.) Ricky Marvin had worked for more than ten (10) years in
IGB Corporation. Under the terms of the personnel policy on
retirement, any employee who had reached the age of 65 and

affidavit, Carissa claimed that there was no need for a prior


referral to the Committee on Decorum and Discipline of her
complaint.

longer interested to pursue the case against Maryrose.


Resolve the case with reasons. (5%)
- IX -

Resolve the case with reasons. (5%)

Kitchie Tempo was one of approximately 500 production


operators at HITEC Semiconductors, Inc., an export-oriented
enterprise whose business depended on orders for computer
chips from overseas. She was hired as a contractual
employee four years ago. Her contracts would be for a
duration of five (5) months at a time, usually after a onemonth interval. Her re-hiring was contingent on her
performance for the immediately preceding contract.

- VIII (1.) Odeck, a policeman, was on leave for a month. While


resting in their house, he heard two of his neighbors fighting
with each other. Odeck rushed to the scene intending to
pacify the protagonists. However, he was shot to death by
one of the protagonists. Zhop, a housemaid, was Odecks
surviving spouse whom he had abandoned for another
woman years back. When she learned of Odecks death, Zhop
filed a claim with the GSIS for death benefits. However, her
claim was denied because (a) when Odeck was killed, he was
on leave; and (b) she was not the dependent spouse of Odeck
when he died.

Six months after the expiration of her last contract, Kitchie


went to HITECs personnel department to inquire why she was
not yet being recalled for another temporary contract. She
was told that her performance during her last stint was
below average. Since there was no union to represent her,

Resolve with reasons whether GSIS is correct in denying the


claim. (5%)

Kitchie seeks your advice as a labor lawyer about her chances


of getting her job back. What will your advice be? (5%)

(2.) Maryrose Gandas application for the renewal of her


license to recruit workers for overseas employment was still
pending with the Philippine Overseas Employment
Administration (POEA). Nevertheless, she recruited Alma and
her three sisters, Ana, Joan and Mavic, for employment as
housemaids in Saudi Arabia. Maryrose represented to the
sisters that she had a license to recruit workers for overseas
employment. Maryrose also demanded and received
P30,000.00 from each of them for her services. However,
Maryroses application for the renewal of her license was
denied, and consequently failed to employ the four sisters in
Saudi Arabia.

NOTHING FOLLOWS.

The sisters charged Maryrose with large scale illegal


recruitment. Testifying in her defense, Maryrose declared that
she acted in good faith because she believed that her
application for the renewal of her license would be approved.
Maryrose adduced in evidence the Affidavits of Desistance
which the four private complainants had executed after the
prosecution rested its case. In the said affidavits, they
acknowledged receipt of the refund by Maryrose of the total
amount of P120,000.00 and indicated that they were no

TAXATION

b) Cases under administrative protest, after issuance of the


final assessment notice to the taxpayer, which are still
pending;

-I-

c) Criminal tax fraud cases;

a) Describe the power of taxation. May a legislative body


enact laws to raise revenues in the absence of a
constitutional provision granting said body the power to tax?
Explain.

d) Criminal violations already filed in court;


e) Cases where final reports of reinvestigation or
reconsideration have been issued resulting in the reduction of
the original assessment agreed to by the taxpayer when he
signed the required agreement form. (5%)

b) May taxes be the subject of set-off or compensation?


Explain.
c) Can an assessment for a local tax be the subject of set-off
or compensation against a final judgment for a sum of money
obtained by the taxpayer against the local government that
made the assessment? Explain.

- III (1.) A city outside of Metro Manila plans to enact an ordinance


that will impose a special levy on idle lands located in
residential subdivisions within its territorial jurisdiction in
addition to the basic real property tax. If the lot owners of a
subdivision located in the said city seek your legal advice on
the matter, what would your advice be? Discuss. (5%)

d) Is a deficiency tax assessment a bar to a claim for tax


refund or tax credit? Explain.
e) Is the approval of the court, sitting as probate or estate
settlement court, required in the enforcement and collection
of estate tax? Explain. (10%)

(2.) a) State and explain the basis of dutiable value of an


imported article subject to an ad valorem tax under the Tariff
and Customs Code. b) Distinguish countervailing duty from
dumping duty. (5%)

- II (1.) Explain briefly whether the following items are taxable or


non-taxable:cralaw

(3.) Jacob, after serving a 5-year tour of duty as military


attach in Jakarta, returned to the Philippines bringing with
him his personal effects including a personal computer and a
car. Would Jacob be liable for taxes on these items? Discuss
fully. (5%)

a) Income from jueteng;


b) Gain arising from expropriation of property;

- IV -

c) Taxes paid and subsequently refunded;

(1.) State with reasons the tax treatment of the following in


the preparation of annual income tax returns:cralaw

d) Recovery of bad debts previously charged off;


e) Gain on the sale of a car used for personal purposes. (5%)

a) Proceeds of life insurance received by a child as irrevocable


beneficiary;

(2.) State and discuss briefly whether the following cases may
be compromised or may not be compromised:cralaw

b) 13th month pay and de minimis benefits;

a) Delinquent accounts;

c) Dividends received by a domestic corporation from

10

(i) another domestic corporation; and

Is Danilo liable for the deficiency tax and the penalties


thereon?

(ii) a foreign corporation;

What is the liability, if any, of the accountant? Discuss. (5%)

d) Interest on deposits with

- VII -

(i) BPI Family Bank; and

An international airline with no landing rights in the


Philippines sold tickets in the Philippines for air
transportation. Is income derived from such sales of tickets
considered taxable income of the said international air carrier
from Philippine sources under the Tax Code? Explain. (5%)

(ii) a local offshore banking unit of a foreign bank;


e) Income realized from sale of
(i) capital assets; and

- VIII -

(ii) ordinary assets. (5%)

JR was a passenger of an airline that crashed. He survived the


accident but sustained serious physical injuries which
required hospitalization for 3 months. Following negotiations
with the airline and its insurer, an agreement was reached
under the terms of which JR was paid the following amounts:
P500,000.00 for his hospitalization; P250,000.00 as moral
damages; and P300,000.00 for loss of income during the
period of his treatment and recuperation. In addition, JR
received from his employer the amount of P200,000.00
representing the cash equivalent of his earned vacation and
sick leaves.

(2.) a) State the conditions required by the Tax Code before


the Commissioner of Internal Revenue could authorize the
refund or credit of taxes erroneously or illegally received.
b) Does a withholding agent have the right to file an
application for tax refund? Explain. (5%)
-VA taxpayer received a tax deficiency assessment of P1.2
Million from the BIR demanding payment within 10 days,
otherwise, it would collect through summary remedies. The
taxpayer requested for a reconsideration stating the grounds
therefor. Instead of resolving the request for reconsideration,
the BIR sent a Final Notice Before Seizure to the taxpayer.
May this action of the Commissioner of Internal Revenue be
deemed a denial of the request for reconsideration of the
taxpayer to entitle him to appeal to the Court of Tax Appeals?

Which, if any, of the amounts he received are subject to


income tax? Explain. (5%)
- IX Company A decides to close its operations due to continuing
losses and to terminate the services of its employees. Under
the Labor Code, employees who are separated from service
for such cause are entitled to a minimum of one-half month
pay for every year of service. Company A paid the equivalent
of one month pay for every year of service and the cash
equivalent of unused vacation and sick leaves as separation
benefits.

Decide with reasons. (5%)


- VI Danilo, who is engaged in the trading business, entrusted to
his accountant the preparation of his income tax return and
the payment of the tax due. The accountant filed a falsified
tax return by underdeclaring the sales and overstating the
expense deductions by Danilo.

Are such benefits taxable and subject to withholding tax


under the Tax Code?
Decide with reasons. (5%)

11

(d) shares of stock in the Philippine subsidiary of the U.S.


Company where he worked;

-XThe Roman Catholic Church owns a 2-hectare lot in a town in


Tarlac province. The southern side and middle part are
occupied by the Church and a convent, the eastern side by a
school run by the Church itself, the southeastern side by
some commercial establishments, while the rest of the
property, in particular the northwestern side, is idle or
unoccupied.

(e) shares of stock in San Miguel Corp. and PLDT;


(f) shares of stock in Disney World in Florida;
(g) U.S. treasury bonds; and
(h) proceeds from a life insurance policy issued by a U.S.
corporation.

May the Church claim tax exemption on the entire land?


Decide with reasons. (5%)

Which of the foregoing assets shall be included in the taxable


gross estate in the Philippines? Explain. (5%)

- XI -

- XIII -

An alien employee of the Asian Development Bank (ADB) who


is retiring soon has offered to sell his car to you which he
imported tax-free for his personal use. The privilege of
exemption from tax is granted to qualified personal use under
the ADB Charter which is recognized by the tax authorities.

Josel agreed to sell his condominium unit to Jess for P2.5


Million. At the time of the sale, the property had a zonal value
of P2.0 Million. Upon the advice of a tax consultant, the
parties agreed to execute two deeds of sale, one indicating
the zonal value of P2.0 Million as the selling price and the
other showing the true selling price of P2.5 Million. The tax
consultant filed the capital gains tax return using the deed of
sale showing the zonal value of P2.0 Million as the selling
price.

If you decide to purchase the car, is the sale subject to tax?


Explain. (5%)
- XII Ralph Donald, an American citizen, was a top executive of a
U.S. company in the Philippines until he retired in 1999. He
came to like the Philippines so much that following his
retirement, he decided to spend the rest of his life in the
country. He applied for and was granted a permanent resident
status the following year. In the spring of 2004, while
vacationing in Orlando, Florida, USA, he suffered a heart
attack and died. At the time of his death, he left the following
properties:cralaw

Discuss the tax implications and consequences of the action


taken by the parties. (5%)
- XIV (1.) Mr. Fermin, a resident of Quezon City, is a Certified Public
Accountant-Lawyer engaged in the practice of his two
professions. He has his main office in Makati City and
maintains a branch office in Pasig City. Mr. Fermin pays his
professional tax as a CPA in Makati City and his professional
tax as a lawyer in Pasig City.

(a) bank deposits with Citibank Makati and Citibank Orlando,


Florida;

a) May Makati City, where he has his main office, require him
to pay his professional tax as a lawyer? Explain.

(b) a resthouse in Orlando, Florida;


(c) a condominium unit in Makati;

b) May Quezon City, where he has his residence and where he


also practices his two professions, go after him for the

12

payment of his professional tax as a CPA and a lawyer?


Explain. (5%)

favorable judgment, the creditors sought to execute on the


spouses house and lot and condominium unit, as well as
Gabbys mansion and agricultural land.

(2.) In 1995, the BIR filed before the Department of Justice


(DOJ) a criminal complaint against a corporation and its
officers for alleged evasion of taxes. The complaint was
supported by a sworn statement of the BIR examiners
showing the computation of the tax liabilities of the erring
taxpayer. The corporation filed a motion to dismiss the
criminal complaint on the ground that there has been, as yet,
no assessment of its tax liability; hence, the criminal
complaint was premature. The DOJ denied the motion on the
ground that an assessment of the tax deficiency of the
corporation is not a precondition to the filing of a criminal
complaint and that in any event, the joint affidavit of the BIR
examiners may be considered as an assessment of the tax
liability of the corporation.

a) Discuss the status of the first and the amended marriage


settlements. (2%)
b) Discuss the effect/s of the said settlements on the
properties acquired by the spouses. (2%)
c) What properties may be held answerable for Milas
obligations? Explain. (2%)
- II In 1985, Sonny and Lulu, both Filipino citizens, were married
in the Philippines. In 1987, they separated, and Sonny went to
Canada, where he obtained a divorce in the same year. He
then married another Filipina, Auring, in Canada on January 1,
1988. They had two sons, James and John. In 1990, after
failing to hear from Sonny, Lulu married Tirso, by whom she
had a daughter, Verna. In 1991, Sonny visited the Philippines
where he succumbed to heart attack.

Is the ruling of the DOJ correct? Explain. (5%)


CIVIL LAW
-I-

a) Discuss the effect of the divorce obtained by Sonny and


Lulu in Canada. (2%)

Gabby and Mila got married at Lourdes Church in Quezon City


on July 10, 1990. Prior thereto, they executed a marriage
settlement whereby they agreed on the regime of conjugal
partnership of gains. The marriage settlement was registered
in the Register of Deeds of Manila, where Mila is a resident. In
1992, they jointly acquired a residential house and lot, as well
as a condominium unit in Makati. In 1995, they decided to
change their property relations to the regime of complete
separation of property. Mila consented, as she was then
engaged in a lucrative business. The spouses then signed a
private document dissolving their conjugal partnership and
agreeing on a complete separation of property.

b) Explain the status of the marriage between Sonny and


Auring. (2%)
c) Explain the status of the marriage between Lulu and Tirso.
(2%)
d) Explain the respective filiation of James, John and Verna.
(2%)
e) Who are the heirs of Sonny? Explain. (2%)
- III -

Thereafter, Gabby acquired a mansion in Baguio City, and a


5-hectare agricultural land in Oriental Mindoro, which he
registered exclusively in his name.

Emil, the testator, has three legitimate children, Tom, Henry


and Warlito; a wife named Adette; parents named Pepe and
Pilar; an illegitimate child, Ramon; brother, Mark; and a sister,
Nanette. Since his wife Adette is well-off, he wants to leave to
his illegitimate child as much of his estate as he can legally

In the year 2000, Milas business venture failed, and her


creditors sued her for P10,000,000.00. After obtaining a

13

do. His estate has a net amount of P1,200,000.00, and all the
above-named relatives are still living. Emil now comes to you
for advice in making a will.

a) Is the governments opposition tenable? Explain. (2%)


b) Would your answer be the same if they sought to adopt
Evas illegitimate daughter? Explain. (2%)

How will you distribute his estate according to his wishes


without violating the law on testamentary succession? (5%)

c) Supposing that they filed the petition to adopt Vicky in the


year 2000, will your answer be the same? Explain. (2%)

- IV Steve was married to Linda, with whom he had a daughter,


Tintin. Steve fathered a son with Dina, his secretary of 20
years, whom Dina named Joey, born on September 20, 1981.
Joeys birth certificate did not indicate the fathers name.
Steve died on August 13, 1993, while Linda died on December
3, 1993, leaving their legitimate daughter, Tintin, as sole heir.
On May 16, 1994, Dina filed a case on behalf of Joey, praying
that the latter be declared an acknowledged illegitimate son
of Steve and that Joey be given his share in Steves estate,
which is now being solely held by Tintin. Tintin put up the
defense that an action for recognition shall only be filed
during the lifetime of the presumed parents and that the
exceptions under Article 285 of the Civil Code do not apply to
him since the said article has been repealed by the Family
Code. In any case, according to Tintin, Joeys birth certificate
does not show that Steve is his father.

- VI Hans Herber, a German national, and his Filipino wife, Rhoda,


are permanent residents of Canada. They desire so much to
adopt Magno, an 8-year old orphaned boy and a baptismal
godson of Rhoda. Since the accidental death of Magnos
parents in 2004, he has been staying with his aunt who,
however, could hardly afford to feed her own family.
Unfortunately, Hans and Rhoda cannot come to the
Philippines to adopt Magno although they possess all the
qualifications as adoptive parents.
Is there a possibility for them to adopt Magno?
How should they go about it? (5%)
- VII -

a) Does Joey have a cause of action against Tintin for


recognition and partition? Explain. (2%)

c) Supposing that Joey died during the pendency of the


action, should the action be dismissed? Explain. (2%)

Don was the owner of an agricultural land with no access to a


public road. He had been passing through the land of Ernie
with the latters acquiescence for over 20 years.
Subsequently, Don subdivided his property into 20 residential
lots and sold them to different persons. Ernie blocked the
pathway and refused to let the buyers pass through his land.

-V-

a) Did Don acquire an easement of right of way? Explain. (2%)

In 1984, Eva, a Filipina, went to work as a nurse in the USA.


There, she met and fell in love with Paul, an American citizen,
and they got married in 1985. Eva acquired American
citizenship in 1987. During their sojourn in the Philippines in
1990, they filed a joint petition for the adoption of Vicky, a 7year old daughter of Evas sister. The government, through
the Office of the Solicitor General, opposed the petition on the
ground that the petitioners, being both foreigners, are
disqualified to adopt Vicky.

b) Could Ernie close the pathway and refuse to let the buyers
pass? Give reasons. (2%)

b) Are the defenses set up by Tintin tenable? Explain. (2%)

c) What are the rights of the lot buyers, if any? Explain. (2%)
- VIII -

14

State with reason whether each of the following is a nuisance,


and if so, give its classification, whether public or
private:cralaw

b) Discuss the rights of Bernie under the circumstances. (2%)

b) A swimming pool (1%)

c) Supposing DEVLAND had fully developed the subdivision


but Bernie failed to pay further installments after 4 years due
to business reverses. Discuss the rights and obligations of the
parties. (2%)

c) A house of prostitution (1%)

- XI -

d) A noisy or dangerous factory in a private land (1%)

Before he left for Riyadh to work as a mechanic, Pedro left his


Adventure van with Tito, with the understanding that the
latter could use it for one year for his personal or family use
while Pedro works in Riyadh. He did not tell Tito that the
brakes of the van were faulty. Tito had the van tuned up and
the brakes repaired. He spent a total amount of P15,000.00.
After using the vehicle for two weeks, Tito discovered that it
consumed too much fuel. To make up for the expenses, he
leased it to Annabelle. Two months later, Pedro returned to
the Philippines and asked Tito to return the van.
Unfortunately, while being driven by Tito, the van was
accidentally damaged by a cargo truck without his fault.

a) A squatters hut (1%)

e) Uncollected garbage (1%)


- IX Marvin offered to construct the house of Carlos for a very
reasonable price of P900,000.00, giving the latter 10 days
within which to accept or reject the offer. On the fifth day,
before Carlos could make up his mind, Marvin withdrew his
offer.
a) What is the effect of the withdrawal of Marvins offer? (2%)

a) Who shall bear the P15,000.00 spent for the repair of the
van? Explain. (2%)

b) Will your answer be the same if Carlos paid Marvin


P10,000.00 as consideration for that option? Explain. (2%)

b) Who shall bear the costs for the vans fuel, oil and other
materials while it was with Tito? Explain. (2%)

c) Supposing that Carlos accepted the offer before Marvin


could communicate his withdrawal thereof?

c) Does Pedro have the right to retrieve the van even before
the lapse of one year? Explain. (2%)

Discuss the legal consequences. (2%)


-X-

d) Who shall bear the expenses for the accidental damage


caused by the cargo truck, granting that the truck driver and
truck owner are insolvent? Explain. (2%)

Bernie bought on installment a residential subdivision lot from


DEVLAND. After having faithfully paid the installments for 48
months, Bernie discovered that DEVLAND had failed to
develop the subdivision in accordance with the approved
plans and specifications within the time frame in the plan. He
thus wrote a letter to DEVLAND informing it that he was
stopping payment. Consequently, DEVLAND cancelled the
sale and wrote Bernie, informing him that his payments are
forfeited in its favor.

- XII On July 14, 2004, Pedro executed in favor of Juan a Deed of


Absolute Sale over a parcel of land covered by TCT No. 6245.
It appears in the Deed of Sale that Pedro received from Juan
P120,000.00 as purchase price. However, Pedro retained the
owners duplicate of said title. Thereafter, Juan, as lessor, and
Pedro, as lessee, executed a contract of lease over the
property for a period of one (1) year with a monthly rental of

a) Was the action of DEVLAND proper? Explain. (2%)

15

P1,000.00. Pedro, as lessee, was also obligated to pay the


realty taxes on the property during the period of lease.

Conrad and Ernie for rescission of the contract of lease and


for damages.

Subsequently, Pedro filed a complaint against Juan for the


reformation of the Deed of Absolute Sale, alleging that the
transaction covered by the deed was an equitable mortgage.
In his verified answer to the complaint, Juan alleged that the
property was sold to him under the Deed of Absolute Sale,
and interposed counterclaims to recover possession of the
property and to compel Pedro to turn over to him the owners
duplicate of title.

a) Will the action prosper? If so, against whom? Explain. (2%)


b) In case of rescission, discuss the rights and obligations of
the parties. (2%)
- XV Under the law on quasi-delict, aside from the persons who
caused injury to persons, who else are liable under the
following circumstances:cralaw

Resolve the case with reasons. (6%)


- XIII -

a) When a 7-year-old boy injures his playmate while playing


with his fathers rifle. Explain. (2%)

Rod, the owner of an FX taxi, found in his vehicle an envelope


containing TCT No. 65432 over a lot registered in Cesars
name. Posing as Cesar, Rod forged Cesars signature on a
Deed of Sale in Rods favor. Rod registered the said document
with the Register of Deeds, and obtained a new title in his
name. After a year, he sold the lot to Don, a buyer in good
faith and for value, who also registered the lot in his name.

b) When a domestic helper, while haggling for a lower price


with a fish vendor in the course of buying foodstuffs for her
employers family, slaps the fish vendor, causing her to fall
and sustain injuries. Explain. (2%)
c) A carpenter in a construction company accidentally hits the
right foot of his co-worker with a hammer. Explain. (2%)

a) Did Rod acquire title to the land? Explain. (2%)

d) A 15-year-old high school student stabs his classmate who


is his rival for a girl while they were going out of the
classroom after their last class. Explain. (2%)

b) Discuss the rights of Don, if any, over the property. (2%)


c) In an ejectment case filed by Don against Cesar, can the
latter ask for the cancellation of Dons title considering that
he (Cesar) is the rightful owner of the lot? Explain. (2%)

e) What defense, if any, is available to them? (2%)


- XVI -

- XIV -

Dr. and Mrs. Almeda are prominent citizens of the country and
are frequent travelers abroad. In 1996, they booked roundtrip business class tickets for the Manila-Hong Kong-Manila
route of the Pinoy Airlines, where they are holders of Gold
Mabalos Class Frequent Flier cards. On their return flight,
Pinoy Airlines upgraded their tickets to first class without their
consent and, inspite of their protestations to be allowed to
remain in the business class so that they could be with their
friends, they were told that the business class was already
fully booked, and that they were given priority in upgrading
because they are elite members/holders of Gold Mabalos
Class cards. Since they were embarrassed at the discussions

Under a written contract dated December 1, 1989, Victor


leased his land to Joel for a period of five (5) years at a
monthly rental of P1,000.00, to be increased to P1,200.00 and
P1,500.00 on the third and fifth year, respectively. On January
1, 1991, Joel subleased the land to Conrad for a period of two
(2) years at a monthly rental of P1,500.00. On December 31,
1992, Joel assigned the lease to his compadre, Ernie, who
acted on the belief that Joel was the rightful owner and
possessor of the said lot. Joel has been faithfully paying the
stipulated rentals to Victor. When Victor learned on May 15,
1992 about the sublease and assignment, he sued Joel,

16

with the flight attendants, they were forced to take the flight
at the first class section apart from their friends who were in
the business class. Upon their return to Manila, they
demanded a written apology from Pinoy Airlines. When it
went unheeded, the couple sued Pinoy Airlines for breach of
contract claiming moral and exemplary damages, as well as
attorneys fees.
Will the action prosper? Give reasons. (5%)

17

MERCANTILE LAW

(2.) Distinguish a negotiable document from a negotiable


instrument. (2%)

Brads rich cousin, and asked her if she could sign a


promissory note in his favor in the amount of P10,000.00 to
pay Pete. Fearing that Pete would kill Brad, Seorita Isobel
acceded to the request. She affixed her signature on a piece
of paper with the assurance of Brad that he will just fill it up
later. Brad then filled up the blank paper, making a
promissory note for the amount of P100,000.00. He then
indorsed and delivered the same to Pete, who accepted the
note as payment of the debt.

(3.) State and explain whether the following are negotiable


instruments under the Negotiable Instruments Law:cralaw

What defense or defenses can Seorita Isobel set up against


Pete? Explain. (3%)

(i) Postal Money Order;

- III -

(ii) A certificate of time deposit which states This is to certify


that bearer has deposited in this bank the sum of FOUR
THOUSAND PESOS (P4,000.00) only, repayable to the
depositor 200 days after date.

(1.) Under what conditions may a stock corporation acquire


its own shares? (2%)

-I(1.) What is a negotiable instrument? Give the characteristics


of a negotiable instrument. (2%)

(2.) Janice rendered some consultancy work for XYZ


Corporation. Her compensation included shares of stock
therein.

(iii) Letters of credit;


(iv) Warehouse receipts;

Can XYZ Corporation issue shares of stock to pay for the


services of Janice as its consultant?

(v) Treasury warrants payable from a specific fund. (5%)

Discuss your answer. (2%)

- II -

- IV -

(1.) Dagul has a business arrangement with Facundo. The


latter would lend money to another, through Dagul, whose
name would appear in the promissory note as the lender.
Dagul would then immediately indorse the note to Facundo.

Divine Corporation is engaged in the manufacture of


garments for export. In the course of its business, it was able
to obtain loans from individuals and financing institutions.
However, due to the drop in the demand for garments in the
international market, Divine Corporation could not meet its
obligations. It decided to sell all its equipment such as sewing
machines, perma-press machines, high speed sewers, cutting
tables, ironing tables, etc., as well as its supplies and
materials to Top Grade Fashion Corporation, its competitor.

Is Dagul an accommodation party? Explain. (2%)


(2.) a) What is a crossed check?
What are the effects of crossing a check? Explain.
b) Distinguish an irregular indorser from a general indorser.
(3%)

a) How would you classify the transaction?


b) Can Divine Corporation sell the aforesaid items to its
competitor, Top Grade Fashion Corporation?

(3.) Brad was in desperate need of money to pay his debt to


Pete, a loan shark. Pete threatened to take Brads life if he
failed to pay. Brad and Pete went to see Seorita Isobel,

What are the requirements to validly sell the items? Explain.

18

- VII c) How would you protect the interests of the creditors of


Divine Corporation?

(1.) Briefly discuss the doctrine of corporate opportunity. (2%)

d) In case Divine Corporation violated the law, what remedies


are available to Top Grade Fashion Corporation against Divine
Corporation? (5%)

(2.) Malyn, Schiera and Jaz are the directors of Patio


Investments, a close corporation formed to run the Patio Caf,
an al fresco coffee shop in Makati City. In 2000, Patio Caf
began experiencing financial reverses, consequently, some of
the checks it issued to its beverage distributors and
employees bounced. In October 2003, Schiera informed Malyn
that she found a location for a second caf in Taguig City.
Malyn objected because of the dire financial condition of the
corporation. Sometime in April 2004, Malyn learned about
Fort Patio Caf located in Taguig City and that its
development was undertaken by a new corporation known as
Fort Patio, Inc., where both Schiera and Jaz are directors.
Malyn also found that Schiera and Jaz, on behalf of Patio
Investments, had obtained a loan of P500,000.00, from
PBCom Bank, for the purpose of opening Fort Patio Caf. This
loan was secured by the assets of Patio Investments and
personally guaranteed by Schiera and Jaz. Malyn then filed a
corporate derivative action before the Regional Trial Court of
Makati City against Schiera and Jaz, alleging that the two
directors had breached their fiduciary duties by
misappropriating money and assets of Patio Investments in
the operation of Fort Patio Caf.

-V(1.) a) Under what circumstances may a corporation declare


dividends? (2%)
b) Distinguish dividend from profit; cash dividend from stock
dividend. (2%)
c) From what funds are cash and stock dividends sourced?
Explain why. (2%)
(2.) A Korean national joined a corporation which is engaged
in the furniture manufacturing business. He was elected to
the Board of Directors. To complement its furniture
manufacturing business, the corporation also engaged in the
logging business.
With the additional logging activity, can the Korean national
still be a member of the Board of Directors? Explain. (3%)

a) Did Schiera and Jaz violate the principle of corporate


opportunity? Explain.

- VI Jojo deposited several cartons of goods with SN Warehouse


Corporation. The corresponding warehouse receipt was issued
to the order of Jojo. He endorsed the warehouse receipt to EJ
who paid the value of the goods deposited. Before EJ could
withdraw the goods, Melchor informed SN Warehouse
Corporation that the goods belonged to him and were taken
by Jojo without his consent. Melchor wants to get the goods,
but EJ also wants to withdraw the same.

b) Was it proper for Malyn to file a derivative suit with a


prayer for injunctive relief? Explain.

a) Who has a better right to the goods? Why?

Aaron, a well-known architect, is suffering from financial


reverses. He has four creditors with a total claim of P26
Million. Despite his intention to pay these obligations, his
current assets are insufficient to cover all of them. His
creditors are about to sue him. Consequently, he was
constrained to file a petition for insolvency.

c) Assuming that a derivative suit is proper, may the action


continue if the corporation is dissolved during the pendency
of the suit? Explain. (5%)
- VIII -

b) If SN Warehouse Corporation is uncertain as to who is


entitled to the property, what is the proper recourse of the
corporation? Explain. (5%)

19

a) Was there constructive total loss to entitle the shipowner


to recover from the insurance company? Explain.

a) Since Aaron was merely forced by circumstances to


petition the court to declare him insolvent, can the judge
properly treat the petition as one for involuntary insolvency?
Explain.

b) Was it proper for the shipowner to send a notice of


abandonment to the insurance company? Explain. (5%)

b) If Aaron is declared an insolvent by the court, what would


be the effect, if any, of such declaration on his creditors?
Explain.

(2.) a) When does double insurance exist? (2%)


b) What is the nature of the liability of the several insurers in
double insurance? Explain. (2%)

c) Assuming that Aaron has guarantors for his debts, are the
guarantors released from their obligations once Aaron is
discharged from his debts? Explain.

- XI Ricardo mortgaged his fishpond to AC Bank to secure a P1


Million loan. In a separate transaction, he opened a letter of
credit with the same bank for $500,000.00 in favor of HS
Bank, a foreign bank, to purchase outboard motors. Likewise,
Ricardo executed a Surety Agreement in favor of AC Bank.
The outboard motors arrived and were delivered to Ricardo,
but he was not able to pay the purchase price thereof.

d) What remedies are available to the guarantors in case they


are made to pay the creditors? Explain. (5%)
- IX (1.) What are the effects of an irrevocable designation of a
beneficiary under the Insurance Code? Explain. (2%)

a) Can AC Bank take possession of the outboard motors?


Why?

(2.) Jacob obtained a life insurance policy for P1 Million


designating irrevocably Diwata, a friend, as his beneficiary.
Jacob, however, changed his mind and wants Yob and Jojo, his
other friends, to be included as beneficiaries considering that
the proceeds of the policy are sufficient for the three friends.

b) Can AC Bank also foreclose the mortgage over the


fishpond? Explain. (5%)
- XII -

Can Jacob still add Yob and Jojo as his beneficiaries? Explain.
(2%)

Hi Yielding Corporation filed a complaint against five of its


officers for violation of Section 31 of the Corporation Code.
The corporation claimed that the said officers were guilty of
advancing their personal interests to the prejudice of the
corporation, and that they were grossly negligent in handling
its affairs. Aside from documents and contracts, the
corporation also submitted in evidence records of the officers
U.S. Dollar deposits in several banks overseas - Boston Bank,
Bank of Switzerland, and Bank of New York. For their part, the
officers filed a criminal complaint against the directors of Hi
Yielding Corporation for violation of Republic Act No. 6426,
otherwise known as the Foreign Currency Deposit Act of the
Philippines. The officers alleged that their bank deposits were
illegally disclosed for want of a court order, and that such
deposits were not even the subject of the case against them.

-X(1.) M/V Pearly Shells, a passenger and cargo vessel, was


insured for P40,000,000.00 against constructive total loss.
Due to a typhoon, it sank near Palawan. Luckily, there were
no casualties, only injured passengers. The shipowner sent a
notice of abandonment of his interest over the vessel to the
insurance company which then hired professionals to afloat
the vessel for P900,000.00. When re-floated, the vessel
needed repairs estimated at P2,000,000.00. The insurance
company refused to pay the claim of the shipowner, stating
that there was no constructive total
loss.chanroblesvirtualawlibrary

20

a) Will the complaint filed against the directors of Hi Yielding


Corporation prosper? Explain.

steer the vessel to the nearest island where it stayed for


seven days. The vessel ran out of provisions for its
passengers. Consequently, the vessel proceeded to Leyte to
replenish its supplies.

b) Was there a violation of the Secrecy of Bank Deposits Law


(Republic Act No. 1405)? Explain. (5%)

a) Assuming that the cargo was damaged because of such


deviation, who between the insurance company and the
owner of the cargo bears the loss? Explain.

- XIII (1.) Discuss the kabit system in land transportation and its
legal consequences. (2%)

b) Under what circumstances can a vessel properly proceed


to a port other than its port of destination? Explain. (4%)

(2.) Procopio purchased an Isuzu passenger jeepney from


Enteng, a holder of a certificate of public convenience for the
operation of public utility vehicle plying the Calamba-Los
Baos route. While Procopio continued offering the jeepney
for public transport services, he did not have the registration
of the vehicle transferred in his name. Neither did he secure
for himself a certificate of public convenience for its
operation. Thus, per the records of the Land Transportation
Franchising and Regulatory Board, Enteng remained its
registered owner and operator. One day, while the jeepney
was traveling southbound, it collided with a ten-wheeler truck
owned by Emmanuel. The driver of the truck admitted
responsibility for the accident, explaining that the truck lost
its brakes.

(2.) Star Shipping Lines accepted 100 cartons of sardines


from Master to be delivered to 555 Company in Manila. Only
88 cartons were delivered, however, these were in bad
condition. 555 Company claimed from Star Shipping Lines the
value of the missing goods, as well as the damaged goods.
Star Shipping Lines refused because the former failed to
present a bill of lading.
Resolve with reasons the claim of 555 Company. (4%)
- XV (1.) S Development Corporation sued Shangrila Corporation
for using the S logo and the tradename Shangrila. The
former claims that it was the first to register the logo and the
tradename in the Philippines and that it had been using the
same in its restaurant business. Shangrila Corporation
counters that it is an affiliate of an international organization
which has been using such logo and tradename Shangrila
for over 20 years. However, Shangrila Corporation registered
the tradename and logo in the Philippines only after the suit
was filed.

Procopio sued Emmanuel for damages, but the latter moved


to dismiss the case on the ground that Procopio is not the real
party in interest since he is not the registered owner of the
jeepney. Resolve the motion with reasons. (3%)
(3.) Baldo is a driver of Yellow Cab Company under the
boundary system. While cruising along the South Expressway,
Baldos cab figured in a collision, killing his passenger, Pietro.
The heirs of Pietro sued Yellow Cab Company for damages,
but the latter refused to pay the heirs, insisting that it is not
liable because Baldo is not its employee.

a) Which of the two corporations has a better right to use the


logo and the tradename? Explain.

Resolve with reasons. (2%)

b) How does the international affiliation of Shangrila


Corporation affect the outcome of the dispute? Explain. (5%)

- XIV -

(2.) Cezar works in a car manufacturing company owned by


Joab. Cezar is quite innovative and loves to tinker with things.
With the materials and parts of the car, he was able to invent
a gas-saving device that will enable cars to consume less gas.

(1.) On a clear weather, M/V Sundo, carrying insured cargo,


left the port of Manila bound for Cebu. While at sea, the
vessel encountered a strong typhoon forcing the captain to

21

Francis, a co-worker, saw how Cezar created the device and


likewise, came up with a similar gadget, also using scrap
materials and spare parts of the company. Thereafter, Francis
filed an application for registration of his device with the
Bureau of Patents. Eighteen months later, Cezar filed his
application for the registration of his device with the Bureau
of Patents.

(3.) Distinguish pecuniary penalties from pecuniary liabilities.


(2%)
(4.) Taking into account the nature and elements of the
felonies of coup d etat and rape, may one be criminally liable
for frustrated coup d etat or frustrated rape? Explain. (2%)

a) Is the gas-saving device patentable? Explain. b) Assuming


that it is patentable, who is entitled to the patent?

(5.) Distinguish malum in se from malum prohibitum. (2%)


- II -

What, if any, is the remedy of the losing party?

(1.) Belle saw Gaston stealing the prized cock of a neighbor


and reported him to the police. Thereafter, Gaston, while
driving a car saw Belle crossing the street. Incensed that Belle
had reported him, Gaston decided to scare her by trying to
make it appear that he was about to run her over. He revved
the engine of his car and drove towards her but he applied
the brakes. Since the road was slippery at that time, the
vehicle skidded and hit Belle causing her death.

c) Supposing Joab got wind of the inventions of his employees


and also laid claim to the patents, asserting that Cezar and
Francis were using his materials and company time in making
the devices, will his claim prevail over those of his
employees? Explain. (5%)

What is the liability of Gaston? Why? (4%)


(2.) DD was engaged in the warehouse business. Sometime in
November 2004, he was in dire need of money. He, thus, sold
merchandise deposited in his warehouse to VR for
P500,000.00. DD was charged with theft, as principal, while
VR as accessory. The court convicted DD of theft but
acquitted VR on the ground that he purchased the
merchandise in good faith. However, the court ordered VR to
return the merchandise to the owner thereof and ordered DD
to refund the P500,000.00 to VR.

CRIMINAL LAW
-I(1.) Distinguish the following from each other:cralaw
a) Complex crime under Article 48 of the Revised Penal Code;

DD moved for the reconsideration of the decision insisting


that he should be acquitted of theft because being the
depositary, he had juridical possession of the merchandise.
VR also moved for the reconsideration of the decision
insisting that since he was acquitted of the crime charged,
and that he purchased the merchandise in good faith, he is
not obligated to return the merchandise to its owner.

b) Special complex crime; and


c) delito continuado. (3%)
(2.) Under Article 27 of the Revised Penal Code, as amended
by Republic Act (RA) No. 7959, reclusion perpetua shall be
from 20 years and 1 day to 40 years.

Rule on the motions with reasons. (5%)

Does this mean that reclusion perpetua is now a divisible


penalty? Explain. (2%)

- III -

22

(1.) Harold was convicted of a crime defined and penalized by


a special penal law where the imposable penalty is from 6
months, as minimum, to 3 years, as maximum. State with
reasons whether the court may correctly impose the following
penalties:cralaw

to the condition, among others, that she should not change


her residence without the courts prior approval.
a) What is the proper period of probation?
b) Supposing before the Order of Discharge was issued by the
court but after the lapse of the period of probation, Maganda
transferred residence without prior approval of the court.

a) a straight penalty of 10 months;


b) 6 months, as minimum, to 11 months, as maximum;

May the court revoke the Order of Probation and order her to
serve the subsidiary imprisonment? Explain. (5%)

c) a straight penalty of 2 years. (5%)


(2.) E and M are convicted of a penal law that imposes a
penalty of fine or imprisonment or both fine and
imprisonment. The judge sentenced them to pay the fine,
jointly and severally, with subsidiary imprisonment in case of
insolvency.

(2.) DD purchased a television set for P50,000.00 with the use


of a counterfeit credit card. The owner of the establishment
had no inkling that the credit card used by DD was
counterfeit.
What crime or crimes did DD commit? Explain. (5%)

a) Is the penalty proper? Explain.

-V-

b) May the judge impose an alternative penalty of fine or


imprisonment? Explain. (4%)

Paz Masipag worked as a housemaid and yaya of the oneweek old son of the spouses Martin and Pops Kuripot. When
Paz learned that her 70 year-old mother was seriously ill, she
asked Martin for a cash advance of P1,000.00 but Martin
refused. One morning, Paz gagged the mouth of Martins son
with stockings; placed the child in a box; sealed it with
masking tape and placed the box in the attic. Later in the
afternoon, she demanded P5,000.00 as ransom for the
release of his son. Martin did not pay the ransom.
Subsequently, Paz disappeared. After a couple of days, Martin
discovered the box in the attic with his child already dead.
According to the autopsy report, the child died of
asphyxiation barely three minutes after the box was sealed.

(3.) The accused was found guilty of 10 counts of rape for


having carnal knowledge with the same woman. In addition to
the penalty of imprisonment, he was ordered to pay
indemnity in the amount of P50,000.00 for each count.
On appeal, the accused questions the award of civil indemnity
for each count, considering that the victim is the same
woman. How would you rule on the contention of the
accused? Explain. (3%)
- IV (1.) Maganda was charged with violation of the Bouncing
Checks Law (BP 22) punishable by imprisonment of not less
than 30 days but not more than 1 year or a fine of not less
than but not more than double the amount of the check,
which fine shall not exceed P200,000.00, or both. The court
convicted her of the crime and sentenced her to pay a fine of
P50,000.00 with subsidiary imprisonment in case of
insolvency, and to pay the private complainant the amount of
the check. Maganda was unable to pay the fine but filed a
petition for probation. The court granted the petition subject

What crime or crimes did Paz commit? Explain. (5%)


- VI Candido stabbed an innocent bystander who accidentally
bumped him. The innocent bystander died as a result of the
stabbing. Candido was arrested and was tested to be positive
for the use of shabu at the time he committed the stabbing.

23

What should be the proper charge against Candido? Explain.


(3%)

Benjie. Pete contended that he acted in defense of his honor


and that, therefore, he should be acquitted of the crime. The
court found that Benjie died under exceptional circumstances
and exonerated Pete of the crime, but sentenced him to
destierro, conformably with Article 247 of the Revised Penal
Code. The court also ordered Pete to pay indemnity to the
heirs of the victim in the amount of P50,000.00.

- VII Jose employed Mario as gardener and Henry as cook. They


learned that Jose won P500,000.00 in the lotto, and decided
to rob him. Mario positioned himself about 30 meters away
from Joses house and acted as lookout. For his part, Henry
surreptitiously gained entry into the house and killed Jose who
was then having his dinner. Henry found the P500,000.00 and
took it. Henry then took a can of gasoline from the garage
and burned the house to conceal the acts. Mario and Henry
fled, but were arrested around 200 meters away from the
house by alert barangay tanods. The tanods recovered the
P500,000.00.

a) Is the defense of Pete meritorious? Explain.


b) Under Article 247 of the Revised Penal Code, is destierro a
penalty? Explain. c) Did the court correctly order Pete to pay
indemnity despite his exoneration under Article 247 of the
Revised Penal Code? Explain. (5%)
- IX -

Mario and Henry were charged with and convicted of robbery


with homicide, with the aggravating circumstances of arson,
dwelling, and nighttime. Mario moved to reconsider the
decision maintaining that he was not at the scene of the
crime and was not aware that Henry killed the victim; hence,
he was guilty only of robbery, as an accomplice. Mario also
claimed that he conspired with Henry to commit robbery but
not to kill Jose. Henry, likewise, moved to reconsider the
decision, asserting that he is liable only for attempted
robbery with homicide with no aggravating circumstance,
considering that he and Mario did not benefit from the
P500,000.00. He further alleged that arson is a felony and not
an aggravating circumstance; dwelling is not aggravating in
attempted robbery with homicide; and nighttime is not
aggravating because the house of Jose was lighted at the
time he was killed.

Allan, the Municipal Treasurer of the Municipality of Gerona,


was in a hurry to return to his office after a day-long official
conference. He alighted from the government car which was
officially assigned to him, leaving the ignition key and the car
unlocked, and rushed to his office. Jules, a bystander, drove
off with the car and later sold the same to his brother, Danny
for P20,000.00, although the car was worth P800,000.00.
a) What are the respective crimes, if any, committed by Allan,
Danny and Jules? Explain.
b) What, if any, are their respective civil liabilities? Explain.
(5%)
-XDuring a PNP buy-bust operation, Cao Shih was arrested for
selling 20 grams of methamphetamine hydrochloride (shabu)
to a poseur-buyer. Cao Shih, through an intermediary, paid
Patrick, the Evidence Custodian of the PNP Forensic Chemistry
Section, the amount of P500,000.00 in consideration for the
destruction by Patrick of the drug. Patrick managed to destroy
the drug.

Resolve with reasons the respective motions of Mario and


Henry. (7%)
- VIII Pete, a security guard, arrived home late one night after
rendering overtime. He was shocked to see Flor, his wife, and
Benjie, his best friend, completely naked having sexual
intercourse. Pete pulled out his service gun and shot and
killed Benjie. Pete was charged with murder for the death of

State with reasons whether Patrick committed the following


crimes:cralaw
a) Direct bribery;

24

grams of the said dangerous drug in his possession. He was


subjected to a drug test and was found positive for the use of
marijuana, another dangerous drug. He was subsequently
charged with two crimes: Violation of Section 11, Article II of
RA 9165 for the possession of shabu and violation of
Section 15, Article II of RA 9165 for the use of marijuana.

b) Indirect bribery;
c) Section 3(e) of RA 3019 (Anti-Graft and Corrupt Practices
Act);
d) Obstruction of Justice under PD 1829; (7%)

a) Are the charges proper? Explain.

- XI -

b) So as not to be sentenced to death, Obie Juan offers to


plead guilty to a lesser offense. Can he do so? Why? (5%)

On July 1, 2004, Jet Matulis, a pedophile, gave P1,000.00 to


Sherly, an orphan and a prostitute, and brought her to a
motel. He inserted a rusty and oversized vibrator into her
vagina with such force that she bled profusely. Jet panicked
and fled. Sherly was brought to the hospital and died a few
days later because of shock caused by hemorrhage.

- XIV Al Chua, a Chinese national, filed a petition under oath for


naturalization, with the Regional Trial Court of Manila. In his
petition, he stated that he is married to Leni Chua; that he is
living with her in Sampaloc, Manila; that he is of good moral
character; and that he has conducted himself in an
irreproachable manner during his stay in the Philippines.
However, at the time of the filing of the petition, Leni Chua
was already living in Cebu, while Al was living with Babes Toh
in Manila, with whom he has an amorous relationship. After
his direct testimony, Al Chua withdrew his petition for
naturalization.

a) What crime or crimes did Jet Matulis commit? Explain.


b) If Sherly were a minor when she died, would your answer
be the same? Explain. (5%)
- XII Don Gabito, a philanthropist, offered to fund several projects
of the Mayor. He opened an account in the Mayors name and
regularly deposited various amounts ranging from
P500,000.00 to P1 Million. From this account, the Mayor
withdrew and used the money for constructing feeder roads,
barangay clinics, repairing schools and for all other municipal
projects. It was subsequently discovered that Don Gabito was
actually a jueteng operator and the amounts he deposited
were proceeds from his jueteng operations.

What crime or crimes, if any, did Al Chua commit? Explain.


(5%)
- XV In an interview aired on television, Cindee uttered defamatory
statements against Erika, a successful and reputable
businesswoman.

What crime/s were committed?

What crime or crimes did Cindee commit? Explain. (3%)

Who are criminally liable? Explain. (6%)


- XIII Obie Juan is suspected to have in his possession an
unspecified amount of methamphetamine hydrochloride or
shabu. An entrapment operation was conducted by police
officers, resulting in his arrest following the discovery of 100

25

REMEDIAL LAW

of Appeals and if granted, the writ of habeas corpus shall be


enforceable anywhere in the Philippines.

-I-

Whose contention is correct? Explain. (5%)

a) Under Article 1144 of the New Civil Code, an action upon a


judgment must be brought within 10 years from the time the
right of action accrues. Is this provision applicable to an
action filed in the Philippines to enforce a foreign judgment?
Explain.

(2.) Under Republic Act No. 8353, one may be charged with
and found guilty of qualified rape if he knew on or before the
commission of the crime that he is afflicted with Human
Immuno-Deficiency Virus (HIV)/Acquired Immune Deficiency
Syndrome (AIDS) or any other sexually transmissible disease
and the virus or disease is transmitted to the victim.

b) May the aggrieved party file a petition for certiorari in the


Supreme Court under Rule 65 of the 1997 Rules of Civil
Procedure instead of filing a petition for review on certiorari
under Rule 45 thereof for the nullification of a decision of the
Court of Appeals in the exercise either of its original or
appellate jurisdiction? Explain.

Under Section 17(a) of Republic Act No. 8504 the court may
compel the accused to submit himself to a blood test where
blood samples would be extracted from his veins to
determine whether he has HIV.

c) May a private document be offered and admitted in


evidence both as documentary evidence and as object
evidence? Explain.

a) Are the rights of the accused to be presumed innocent of


the crime charged, to privacy, and against self-incrimination
violated by such compulsory testing? Explain.

d) Distinguish a derivative suit from a class suit.

b) If the result of such test shows that he is HIV positive, and


the prosecution offers such result in evidence to prove the
qualifying circumstance under the Information for qualified
rape, should the court reject such result on the ground that it
is the fruit of a poisonous tree? Explain. (8%)

e) When may the trial court order that the testimony of a


child be taken by live-link television? Explain. (10%)
- II -

- III -

(1.) While Marietta was in her place of work in Makati City, her
estranged husband Carlo barged into her house in Paraaque
City, abducted their six-year old son, Percival, and brought
the child to his hometown in Baguio City. Despite Mariettas
pleas, Carlo refused to return their child. Marietta, through
counsel, filed a petition for habeas corpus against Carlo in the
Court of Appeals in Manila to compel him to produce their son
before the court and for her to regain custody. She alleged in
the petition that despite her efforts, she could no longer
locate her son.

Perry is a resident of Manila, while Ricky and Marvin are


residents of Batangas City. They are the co-owners of a parcel
of residential land located in Pasay City with an assessed
value of P100,000.00. Perry borrowed P100,000.00 from Ricky
which he promised to pay on or before December 1, 2004.
However, Perry failed to pay his loan. Perry also rejected
Ricky and Marvins proposal to partition the property.
Ricky filed a complaint against Perry and Marvin in the
Regional Trial Court of Pasay City for the partition of the
property. He also incorporated in his complaint his action
against Perry for the collection of the latters P100,000.00
loan, plus interests and attorneys fees.

In his comment, Carlo alleged that the petition was


erroneously filed in the Court of Appeals as the same should
have been filed in the Family Court in Baguio City which,
under Republic Act No. 8369, has exclusive jurisdiction over
the petition. Marietta replied that under Rule 102 of the Rules
of Court, as amended, the petition may be filed in the Court

26

State with reasons whether it was proper for Ricky to join his
causes of action in his complaint for partition against Perry
and Marvin in the Regional Trial Court of Pasay City. (5%)

- VI While cruising on a highway, a taxicab driven by Mans hit an


electric post. As a result thereof, its passenger, Jovy, suffered
serious injuries. Mans was subsequently charged before the
Municipal Trial Court with reckless imprudence resulting in
serious physical injuries.

- IV Raphael, a warehouseman, filed a complaint against V


Corporation, X Corporation and Y Corporation to compel them
to interplead. He alleged therein that the three corporations
claimed title and right of possession over the goods deposited
in his warehouse and that he was uncertain which of them
was entitled to the goods. After due proceedings, judgment
was rendered by the court declaring that X Corporation was
entitled to the goods. The decision became final and
executory.

Thereafter, Jovy filed a civil action against Lourdes, the owner


of the taxicab, for breach of contract, and Mans for quasidelict. Lourdes and Mans filed a motion to dismiss the civil
action on the ground of litis pendentia, that is, the pendency
of the civil action impliedly instituted in the criminal action for
reckless imprudence resulting in serious physical injuries.
Resolve the motion with reasons. (4%)

Raphael filed a complaint against X Corporation for the


payment of P100,000.00 for storage charges and other
advances for the goods. X Corporation filed a motion to
dismiss the complaint on the ground of res judicata. X
Corporation alleged that Raphael should have incorporated in
his complaint for interpleader his claim for storage fees and
advances and that for his failure he was barred from
interposing his claim. Raphael replied that he could not have
claimed storage fees and other advances in his complaint for
interpleader because he was not yet certain as to who was
liable therefor.

- VII Katy filed an action against Tyrone for collection of the sum of
P1 Million in the Regional Trial Court, with an ex-parte
application for a writ of preliminary attachment. Upon posting
of an attachment bond, the court granted the application and
issued a writ of preliminary attachment.
Apprehensive that Tyrone might withdraw his savings deposit
with the bank, the sheriff immediately served a notice of
garnishment on the bank to implement the writ of preliminary
attachment. The following day, the sheriff proceeded to
Tyrones house and served him the summons, with copies of
the complaint containing the application for writ of
preliminary attachment, Katys affidavit, order of attachment,
writ of preliminary attachment and attachment bond.

Resolve the motion with reasons. (4%)


-V(1.) After Lulus death, her heirs brought her last will to a
lawyer to obtain their respective shares in the estate. The
lawyer prepared a deed of partition distributing Lulus estate
in accordance with the terms of her will. Is the act of the
lawyer correct? Why? (2%)

Within fifteen (15) days from service of the summons, Tyrone


filed a motion to dismiss and to dissolve the writ of
preliminary attachment on the following grounds: (i) the court
did not acquire jurisdiction over his person because the writ
was served ahead of the summons; (ii) the writ was
improperly implemented; and (iii) said writ was improvidently
issued because the obligation in question was already fully
paid.

(2.) Nestor died intestate in 2003, leaving no debts. How may


his estate be settled by his heirs who are of legal age and
have legal capacity? Explain. (2%)
(3.) State the rule on venue in judicial settlement of estate of
deceased persons. (2%)

Resolve the motion with reasons. (4%)

27

- VIII -

a third-party claim over said properties claiming that B had


already transferred the same to him.

In a complaint for recovery of real property, the plaintiff


averred, among others, that he is the owner of the said
property by virtue of a deed of sale executed by the
defendant in his favor. Copy of the deed of sale was
appended to the complaint as Annex A thereof.

A moved to deny the third-party claim and to hold B and C


jointly and severally liable to him for the money judgment
alleging that B had transferred said properties to C to defraud
him (A).

In his unverified answer, the defendant denied the allegation


concerning the sale of the property in question, as well as the
appended deed of sale, for lack of knowledge or information
sufficient to form a belief as to the truth thereof.

After due hearing, the court denied the third-party claim and
rendered an amended decision declaring B and C jointly and
severally liable to A for the money judgment.
Is the ruling of the court correct? Explain. (4%)

Is it proper for the court to render judgment without trial?


Explain. (4%)

- XI -

- IX -

Helen is the daughter of Eliza, a Filipina, and Tony, a Chinese,


who is married to another woman living in China. Her birth
certificate indicates that Helen is the legitimate child of Tony
and Eliza and that she is a Chinese citizen.

On May 12, 2005, the plaintiff filed a complaint in the


Regional Trial Court of Quezon City for the collection of
P250,000.00. The defendant filed a motion to dismiss the
complaint on the ground that the court had no jurisdiction
over the action since the claimed amount of P250,000.00 is
within the exclusive jurisdiction of the Metropolitan Trial Court
of Quezon City.

Helen wants her birth certificate corrected by changing her


filiation from legitimate to illegitimate and her citizenship
from Chinese to Filipino because her parents were not
married.

Before the court could resolve the motion, the plaintiff,


without leave of court, amended his complaint to allege a
new cause of action consisting in the inclusion of an
additional amount of P200,000.00, thereby increasing his
total claim to P450,000.00. The plaintiff thereafter filed his
opposition to the motion to dismiss, claiming that the
Regional Trial Court had jurisdiction over his action.

- XII -

What petition should Helen file and what procedural


requirements must be observed? Explain. (5%)

Mariano was convicted by the Regional Trial Court for raping


Victoria and meted the penalty of reclusion perpetua. While
serving sentence at the National Penitentiary, Mariano and
Victoria were married. Mariano filed a motion in said court for
his release from the penitentiary on his claim that under
Republic Act No. 8353, his marriage to Victoria extinguished
the criminal action against him for rape, as well as the
penalty imposed on him. However, the court denied the
motion on the ground that it had lost jurisdiction over the
case after its decision had become final and executory.

Rule on the motion of the defendant with reasons. (4%)


-XA obtained a money judgment against B. After the finality of
the decision, the court issued a writ of execution for the
enforcement thereof. Conformably with the said writ, the
sheriff levied upon certain properties under Bs name. C filed

a) Is the ruling of the court correct? Explain.

28

b) What remedy/remedies should the counsel of Mariano take


to secure his proper and most expeditious release from the
National Penitentiary? Explain. (7%)

For the multiple stab wounds sustained by the victim, Noel


was charged with frustrated homicide in the Regional Trial
Court. Upon arraignment, he entered a plea of guilty to said
crime. Neither the court nor the prosecution was aware that
the victim had died two days earlier on account of his stab
wounds.

- XIII Rodolfo is charged with possession of unlicensed firearms in


an Information filed in the Regional Trial Court. It was alleged
therein that Rodolfo was in possession of two unlicensed
firearms: a .45 caliber and a .32 caliber.

Because of his guilty plea, Noel was convicted of frustrated


homicide and meted the corresponding penalty. When the
prosecution learned of the victims death, it filed within fifteen
(15) days therefrom a motion to amend the Information to
upgrade the charge from frustrated homicide to
consummated homicide. Noel opposed the motion claiming
that the admission of the amended Information would place
him in double jeopardy.

Under Republic Act No. 8294, possession of an unlicensed .45


caliber gun is punishable by prision mayor in its minimum
period and a fine of P30,000.00, while possession of an
unlicensed .32 caliber gun is punishable by prision
correccional in its maximum period and a fine of not less than
P15,000.00.

Resolve the motion with reasons. (4%)

As counsel of the accused, you intend to file a motion to


quash the Information. What ground or grounds should you
invoke? Explain. (4%)

- XVI Dencio barged into the house of Marcela, tied her to a chair
and robbed her of assorted pieces of jewelry and money.
Dencio then brought Candida, Marcelas maid, to a bedroom
where he raped her. Marcela could hear Candida crying and
pleading: Huwag! Maawa ka sa akin! After raping Candida,
Dencio fled from the house with the loot. Candida then untied
Marcela and rushed to the police station about a kilometer
away and told Police Officer Roberto Maawa that Dencio had
barged into the house of Marcela, tied the latter to a chair
and robbed her of her jewelry and money. Candida also
related to the police officer that despite her pleas, Dencio had
raped her. The policeman noticed that Candida was hysterical
and on the verge of collapse. Dencio was charged with
robbery with rape. During the trial, Candida can no longer be
located.

- XIV Police operatives of the Western Police District, Philippine


National Police, applied for a search warrant in the Regional
Trial Court for the search of the house of Juan Santos and the
seizure of an undetermined amount of shabu.
The team arrived at the house of Santos but failed to find him
there. Instead, the team found Roberto Co. The team
conducted a search in the house of Santos in the presence of
Roberto Co and barangay officials and found ten (10) grams
of shabu. Roberto Co was charged in court with illegal
possession of ten grams of shabu.
Before his arraignment, Roberto Co filed a motion to quash
the search warrant on the following grounds:cralaw

a) If the prosecution presents Police Officer Roberto Maawa to


testify on what Candida had told him, would such testimony
of the policeman be hearsay? Explain.

(a) he was not the accused named in the search warrant; and
(b) the warrant does not describe the article to be seized with
sufficient particularity. Resolve the motion with reasons. (4%)

b) If the police officer will testify that he noticed Candida to


be hysterical and on the verge of collapse, would such
testimony be considered as opinion, hence, inadmissible?
Explain. (8%)

- XV -

29

- XVII -

Resolve with reasons the motion of respondent AG. (5%)

Explain briefly whether the Regional Trial Court may, motu


proprio, take judicial notice of the following:cralaw
a) The street name of methamphetamine hydrochloride is
shabu;
b) Ordinances approved by municipalities under its territorial
jurisdiction;
c) Foreign laws;
d) Rules and Regulations issued by quasi-judicial bodies
implementing statutes;
e) Rape may be committed even in public places. (5%)
- XVIII Regional Director AG of the Department of Public Works and
Highways was charged with violation of Section 3(e) of
Republic Act No. 3019 in the Office of the Ombudsman. An
administrative charge for gross misconduct arising from the
transaction subject matter of said criminal case was filed
against him in the same office. The Ombudsman assigned a
team composed of investigators from the Office of the Special
Prosecutor and from the Office of the Deputy Ombudsman for
the Military to conduct a joint investigation of the criminal
case and the administrative case. The team of investigators
recommended to the Ombudsman that AG be preventively
suspended for a period not exceeding six (6) months on its
finding that the evidence of guilt is strong. The Ombudsman
issued the said order as recommended by the investigators.
AG moved to reconsider the order on the following grounds:
(a) the Office of the Special Prosecutor had exclusive
authority to conduct a preliminary investigation of the
criminal case; (b) the order for his preventive suspension was
premature because he had yet to file his answer to the
administrative complaint and submit countervailing evidence;
and (c) he was a career executive service officer and under
Presidential Decree No. 807 (Civil Service Law), his preventive
suspension shall be for a maximum period of three months.

30

LEGAL ETHICS AND PRACTICAL EXERCISES


b) On the authentication or custody of any instrument;
-I-

c) On the theory of the case;

Multiple choice. Choose the correct answer. Write the letter


corresponding to your answer.

d) On substantial matters in cases where his testimony is


essential to the ends of justice. (2%)

(1.) Which of the following need not be verified?

- II -

a) Petition for Certiorari;


b) Interpleader;
c) Petition for Habeas Corpus;
d) Answer with compulsory counterclaim;
e) All pleadings under the Rules on Summary Procedure. (2%)

Mike Adelantado, an aspiring lawyer, disclosed in his petition


to take the 2003 Bar Examinations that there were two civil
cases pending against him for nullification of contract and
damages. He was thus allowed to conditionally take the bar,
and subsequently placed third in the said exams.

(2.) Which of the following statements is false?

In 2004, after the two civil cases had been resolved, Mike
Adelantado filed his petition to take the Lawyers Oath and
sign the Roll of Attorneys before the Supreme Court. The
Office of the Bar Confidant, however, had received two
anonymous letters: the first alleged that at the time Mike
Adelantado filed his petition to take the bar, he had two other
civil cases pending against him, as well as a criminal case for
violation of Batas Pambansa (B.P.) Bilang 22; the other letter
alleged that Mike Adelantado, as Sangguniang Kabataan (SK)
Chairperson, had been signing the attendance sheets of (SK)
meetings as Atty. Mike
Adelantado.chanroblesvirtualawlibrary

a) All administrative cases against Justices of appellate courts


and judges of lower courts fall exclusively within the
jurisdiction of the Supreme Court.
b) Administrative cases against erring Justices of the Court of
Appeals and Sandiganbayan, judges, and lawyers in the
government service are not automatically treated as
disbarment cases.
c) The IBP Board of Governors may, motu proprio, or upon
referral by the Supreme Court or by a Chapter Board of
Officers, or at the instance of any person, initiate and
prosecute proper charges against erring lawyers including
those in the government service.

a) Having passed the bar, can Mike Adelantado already use


the appellation attorney? Explain your answer. (3%)
b) Should Mike Adelantado be allowed to take his oath as a
lawyer and sign the Roll of Attorneys? Explain your answer.
(3%)

d) The filing of an administrative case against the judge is not


a ground for disqualification/inhibition.
e) Trial courts retain jurisdiction over the criminal aspect of
offenses committed by justices of appellate courts and judges
of lower courts. (2%)

- III Atty. Kuripot was one of Town Banks valued clients. In


recognition of his loyalty to the bank, he was issued a gold
credit card with a credit limit of P250,000.00. After two
months, Atty. Kuripot exceeded his credit limit, and refused to
pay the monthly charges as they fell due. Aside from a
collection suit, Town Bank also filed a disbarment case against
Atty. Kuripot.

(3.) On which of the following is a lawyer proscribed from


testifying as a witness in a case he is handling for a
client:cralaw
a) On the mailing of documents;

31

In his comment on the disbarment case, Atty. Kuripot insisted


that he did not violate the Code of Professional Responsibility,
since his obligation to the bank was personal in nature and
had no relation to his being a lawyer.

Will you lower your rates in order to get the client? Explain.
(5%)

a) Is Atty. Kuripot correct? Explain your answer. (3%)

(1.) Judge Segotier is a member of Phi Nu Phi Fraternity. Atty.


Nonato filed a motion to disqualify Judge Segotier on the
ground that the counsel for the opposing party is also a
member of the Phi Nu Phi Fraternity. Judge Segotier denied
the motion. Comment on his ruling. (5%)

- VII -

b) Explain whether Atty. Kuripot should be held


administratively liable for his refusal to settle his credit card
bill. (3%)
- IV -

(2.) In an intestate proceeding, a petition for the issuance of


letters of administration in favor of a Regional Trial Court
Judge was filed by one of the heirs. Another heir opposed the
petition on the ground that the judge is disqualified to
become an administrator of the estate as he is the brother-inlaw of the deceased. Rule on the petition. (5%)

You had just taken your oath as a lawyer. The secretary to the
president of a big university offered to get you as the official
notary public of the school. She explained that a lot of
students lose their Identification Cards and are required to
secure an affidavit of loss before they can be issued a new
one. She claimed that this would be very lucrative for you, as
more than 30 students lose their Identification Cards every
month. However, the secretary wants you to give her one-half
of your earnings therefrom.

- VIII Due to the number of cases handled by Atty. Cesar, he failed


to file a notice of change of address with the Court of
Appeals. Hence, he was not able to file an appellants brief
and consequently, the case was dismissed. Aggrieved, Atty.
Cesar filed a motion for reconsideration of the resolution
dismissing the appeal and to set aside the entry of judgment
on the ground that he already indicated in his Urgent Motion
for Extension of Time to File Appeal Brief his new address
and that his failure to file a notice of change of address is an
excusable negligence.

Will you agree to the arrangement? Explain. (5%)


-VJudge Horacio would usually go to the cockpits on Saturdays
for relaxation, as the owner of the cockpit is a friend of his. He
also goes to the casino once a week to accompany his wife
who loves to play the slot machines. Because of this, Judge
Horacio was administratively charged. When asked to explain,
he said that although he goes to these places, he only
watches and does not place any bets.

Will the motion prosper? Explain. (5%)


- IX -

Is his explanation tenable? Explain. (5%)

Darius is charged with the crime of murder. He sought Atty.


Francias help and assured the latter that he did not commit
the crime. Atty. Francia agreed to represent him in court.
During the trial, the prosecution presented several witnesses
whose testimonies convinced Atty. Francia that her client is
guilty. She confronted his client who eventually admitted that
he indeed committed the crime. In view of his admission, Atty.
Francia decided to withdraw from the case.

- VI A businessman is looking for a new retainer. He approached


you and asked for your schedule of fees or charges. He
informed you of the professional fees he is presently paying
his retainer, which is actually lower than your rates. He said
that if your rates are lower, he would engage your services.

32

Should Atty. Francia be allowed to do so? Explain. (5%)

was seen conversing with Atty. Ocsing while they were eating
at the same table.

-X-

Comment on the propriety of Judge Magbags act. (5%)

Atty. Yabang was suspended as a member of the Bar for a


period of one (1) year. During the period of suspension, he
was permitted by his law firm to continue working in their
office, drafting and preparing pleadings and other legal
documents but was not allowed to come into direct contact
with the firms clients. Atty. Yabang was subsequently sued for
illegal practice of law.

- XIII Gerry Cruz is the owner of a 1,000-square meter lot covered


by Transfer Certificate of Title No. 12345 located in Sampaloc,
Metro Manila. Gerry decided to sell the property but did not
have the time to look for a buyer. He then designated his
brother, Jon, to look for a buyer and negotiate the sale. Jon
met Angelo Santos who expressed his interest to buy the lot.
Angelo agreed to pay P1 Million for the property on
September 26, 2005.

Would the case prosper? Explain. (5%)


- XI Atty. Japzon, a former partner of XXX law firm, is representing
Kapuso Corporation in a civil case against Kapamilya
Corporation whose legal counsel is XXX law firm. Atty. Japzon
claims that she never handled the case of Kapamilya
Corporation when she was still with XXX law firm.

a) Draft the Special Power of Attorney to be executed by


Gerry Cruz, as principal, in favor of his brother Jon, as agent,
authorizing the latter to sell the property in favor of Angelo
Santos. (7%)
b) Draft the Deed of Sale of Real Property. (7%)

Is there a conflict of interest? Explain. (5%)

- XIV -

- XII -

Draft a withdrawal of counsel without conformity of client.


(6%)

Pending before the sala of Judge Magbag is the case of CDG


versus JQT. The legal counsel of JQT is Atty. Ocsing who
happens to be the brother of Atty. Ferreras, a friend of Judge
Magbag. While the case was still being heard, Atty. Ferreras
and his wife celebrated their wedding anniversary. They
invited their friends and family to a dinner party at their
house in Forbes Park. Judge Magbag attended the party and

- XV Draft a Notice of Appeal. (6%) - XVI - Draft a Certification of


Non-Forum Shopping. (6%)

33