Professional Documents
Culture Documents
Cases For June 26
Cases For June 26
KAPUNAN, J.:
CHUCHI Ina-ano ko m'am na utang na Pasay City, Metro Manila, September 16,
loob. 1988.
ESG Huwag na lang, hindi mo utang
na loob, kasi kung baga sa no, MARIANO M. CUNETA
nilapastangan mo ako. Asst. City Fiscal
CHUCHI Paano kita nilapastanganan?
Upon arraignment, in lieu of a plea,
ESG Mabuti pa lumabas ka na. Hindi petitioner filed a Motion to Quash the
na ako makikipagusap sa 'yo. Lumabas ka Information on the ground that the facts
na. Magsumbong ka. 3 charged do not constitute an offense,
particularly a violation of R.A. 4200. In an
As a result of petitioner's recording of the order May 3, 1989, the trial court granted
event and alleging that the said act of the Motion to Quash, agreeing with
secretly taping the confrontation was petitioner that 1) the facts charged do not
illegal, private respondent filed a criminal constitute an offense under R.A. 4200;
case before the Regional Trial Court of and that 2) the violation punished by R.A.
Pasay City for violation of Republic Act 4200 refers to a the taping of a
4200, entitled "An Act to prohibit and communication by a personother than a
penalize wire tapping and other related participant to the communication. 4
violations of private communication, and From the trial court's Order, the private
other purposes." An information charging respondent filed a Petition for Review on
petitioner of violation of the said Act, Certiorari with this Court, which
dated October 6, 1988 is quoted herewith: forthwith referred the case to the Court of
Appeals in a Resolution (by the First
INFORMATION Division) of June 19, 1989.
The Undersigned Assistant City Fiscal
Accusses Socorro D. Ramirez of Violation On February 9, 1990, respondent Court of
of Republic Act No. 4200, committed as Appeals promulgated its assailed Decision
follows: declaring the trial court's order of May 3,
1989 null and void, and holding that:
That on or about the 22nd day of
February, 1988, in Pasay City Metro [T]he allegations sufficiently constitute an
Manila, Philippines, and within the offense punishable under Section 1 of
jurisdiction of this honorable court, the R.A. 4200. In thus quashing the
above-named accused, Socorro D. information based on the ground that the
Ramirez not being authorized by Ester S. facts alleged do not constitute an offense,
Garcia to record the latter's conversation the respondent judge acted in grave abuse
with said accused, did then and there of discretion correctible by certiorari. 5
willfully, unlawfully and feloniously, with Consequently, on February 21, 1990,
the use of a tape recorder secretly record petitioner filed a Motion for
the said conversation and thereafter Reconsideration which respondent Court
communicate in writing the contents of of Appeals denied in its Resolution 6 dated
June 19, 1990. Hence, the instant petition. such communication or spoken word by
using a device commonly known as a
Petitioner vigorously argues, as her "main dictaphone or dictagraph or detectaphone
and principal issue" 7 that the applicable or walkie-talkie or tape recorder, or
provision of Republic Act 4200 does not however otherwise described.
apply to the taping of a private
conversation by one of the parties to the The aforestated provision clearly and
conversation. She contends that the unequivocally makes it illegal for any
provision merely refers to the person, not authorized by all the parties to
unauthorized taping of a private any private communication to secretly
conversation by a party other than those record such communication by means of a
involved in the communication.8 In tape recorder. The law makes no
relation to this, petitioner avers that the distinction as to whether the party sought
substance or content of the conversation to be penalized by the statute ought to be a
must be alleged in the Information, party other than or different from those
otherwise the facts charged would not involved in the private communication.
constitute a violation of R.A. 4200. 9 The statute's intent to penalize all persons
Finally, petitioner agues that R.A. 4200 unauthorized to make such recording is
penalizes the taping of a "private underscored by the use of the qualifier
communication," not a "private "any". Consequently, as respondent Court
conversation" and that consequently, her of Appeals correctly concluded, "even a
act of secretly taping her conversation (person) privy to a communication who
with private respondent was not illegal records his private conversation with
under the said act. 10 another without the knowledge of the
We disagree. latter (will) qualify as a violator" 13 under
First, legislative intent is determined this provision of R.A. 4200.
principally from the language of a statute.
Where the language of a statute is clear A perusal of the Senate Congressional
and unambiguous, the law is applied Records, moreover, supports the
according to its express terms, and respondent court's conclusion that in
interpretation would be resorted to only enacting R.A. 4200 our lawmakers indeed
where a literal interpretation would be contemplated to make illegal,
either impossible 11 or absurb or would unauthorized tape recording of private
lead to an injustice. 12 conversations or communications taken
Section 1 of R.A. 4200 entitled, " An Act either by the parties themselves or by third
to Prohibit and Penalized Wire Tapping persons. Thus:
and Other Related Violations of Private
Communication and Other Purposes," xxx xxx xxx
provides:
Senator Taada: That qualified only
Sec. 1. It shall be unlawfull for any "overhear".
person, not being authorized by all the
parties to any private communication or Senator Padilla: So that when it is
spoken word, to tap any wire or cable, or intercepted or recorded, the element of
by using any other device or arrangement, secrecy would not appear to be material.
to secretly overhear, intercept, or record Now, suppose, Your Honor, the recording
is not made by all the parties but by some was to say that in meetings of the board of
parties and involved not criminal cases directors where a tape recording is taken,
that would be mentioned under section 3 there is no objection to this if all the
but would cover, for example civil cases parties know. It is but fair that the people
or special proceedings whereby a whose remarks and observations are being
recording is made not necessarily by all made should know that the observations
the parties but perhaps by some in an are being recorded.
effort to show the intent of the parties
because the actuation of the parties prior, Senator Padilla: Now, I can understand.
simultaneous even subsequent to the
contract or the act may be indicative of Senator Taada: That is why when we
their intention. Suppose there is such a take statements of persons, we say:
recording, would you say, Your Honor, "Please be informed that whatever you say
that the intention is to cover it within the here may be used against you." That is
purview of this bill or outside? fairness and that is what we demand. Now,
in spite of that warning, he makes
Senator Taada: That is covered by the damaging statements against his own
purview of this bill, Your Honor. interest, well, he cannot complain any
more. But if you are going to take a
Senator Padilla: Even if the record should recording of the observations and remarks
be used not in the prosecution of offense of a person without him knowing that it is
but as evidence to be used in Civil Cases being taped or recorded, without him
or special proceedings? knowing that what is being recorded may
be used against him, I think it is unfair.
Senator Taada: That is right. This is a
complete ban on tape recorded xxx xxx xxx
conversations taken without the
authorization of all the parties. (Congression Record, Vol. III, No. 31, p.
584, March 12, 1964)
Senator Padilla: Now, would that be
reasonable, your Honor? Senator Diokno: Do you understand, Mr.
Senator, that under Section 1 of the bill as
Senator Taada: I believe it is reasonable now worded, if a party secretly records a
because it is not sporting to record the public speech, he would be penalized
observation of one without his knowing it under Section 1? Because the speech is
and then using it against him. It is not fair, public, but the recording is done secretly.
it is not sportsmanlike. If the purpose;
Your honor, is to record the intention of Senator Taada: Well, that particular
the parties. I believe that all the parties aspect is not contemplated by the bill. It is
should know that the observations are the communication between one person
being recorded. and another person not between a
speaker and a public.
Senator Padilla: This might reduce the
utility of recorders. xxx xxx xxx
Senator Taada: Well no. For example, I (Congressional Record, Vol. III, No. 33, p.
626, March 12, 1964) sharing or imparting, as in a conversation,
15
or signifies the "process by which
xxx xxx xxx meanings or thoughts are shared between
individuals through a common system of
The unambiguity of the express words of symbols (as language signs or gestures)" 16
the provision, taken together with the These definitions are broad enough to
above-quoted deliberations from the include verbal or non-verbal, written or
Congressional Record, therefore plainly expressive communications of "meanings
supports the view held by the respondent or thoughts" which are likely to include
court that the provision seeks to penalize the emotionally-charged exchange, on
even those privy to the private February 22, 1988, between petitioner and
communications. Where the law makes no private respondent, in the privacy of the
distinctions, one does not distinguish. latter's office. Any doubts about the
legislative body's meaning of the phrase
Second, the nature of the conversations is "private communication" are, furthermore,
immaterial to a violation of the statute. put to rest by the fact that the terms
The substance of the same need not be "conversation" and "communication" were
specifically alleged in the information. interchangeably used by Senator Taada
What R.A. 4200 penalizes are the acts of in his Explanatory Note to the bill quoted
secretly overhearing, intercepting or below:
recording private communications by
means of the devices enumerated therein. It has been said that innocent people have
The mere allegation that an individual nothing to fear from their conversations
made a secret recording of a private being overheard. But this statement
communication by means of a tape ignores the usual nature of conversations
recorder would suffice to constitute an as well the undeniable fact that most, if
offense under Section 1 of R.A. 4200. As not all, civilized people have some aspects
the Solicitor General pointed out in his of their lives they do not wish to expose.
COMMENT before the respondent court: Free conversations are often characterized
"Nowhere (in the said law) is it required by exaggerations, obscenity, agreeable
that before one can be regarded as a falsehoods, and the expression of anti-
violator, the nature of the conversation, as social desires of views not intended to be
well as its communication to a third taken seriously. The right to the privacy of
person should be professed."14 communication, among others, has
Finally, petitioner's contention that the expressly been assured by our
phrase "private communication" in Constitution. Needless to state here, the
Section 1 of R.A. 4200 does not include framers of our Constitution must have
"private conversations" narrows the recognized the nature of conversations
ordinary meaning of the word between individuals and the significance
"communication" to a point of absurdity. of man's spiritual nature, of his feelings
The word communicate comes from the and of his intellect. They must have
latin word communicare, meaning "to known that part of the pleasures and
share or to impart." In its ordinary satisfactions of life are to be found in the
signification, communication connotes the unaudited, and free exchange of
act of sharing or imparting signification, communication between individuals
communication connotes the act of free from every unjustifiable intrusion by
whatever means. 17
In Gaanan vs. Intermediate Appellate
Court, 18 a case which dealt with the issue
of telephone wiretapping, we held that the
use of a telephone extension for the
purpose of overhearing a private
conversation without authorization did not
violate R.A. 4200 because a telephone
extension devise was neither among those
"device(s) or arrangement(s)" enumerated
therein, 19 following the principle that
"penal statutes must be construed strictly
in favor of the accused." 20 The instant
case turns on a different note, because the
applicable facts and circumstances
pointing to a violation of R.A. 4200 suffer
from no ambiguity, and the statute itself
explicitly mentions the unauthorized
"recording" of private communications
with the use of tape-recorders as among
the acts punishable.
SO ORDERED.
Concave Commercial and Industrial
Company with Richard A. Yambao, owner
and manager of Elecon Engineering
Services (Elecon), a supplier of petitioner
often recommended by Saldivar. The
Republic of the Philippines report also disclosed that Saldivar had
SUPREME COURT taken petitioner's missing Fedders
Manila airconditioning unit for his own personal
EN BANC use without authorization and also
connived with Yambao to defraud
G.R. No. 82511 March 3, 1992 petitioner of its property. The
GLOBE-MACKAY CABLE AND airconditioner was recovered only after
RADIO CORPORATION, petitioner, petitioner GMCR filed an action for
vs. replevin against Saldivar. 1
NATIONAL LABOR RELATIONS It likewise appeared in the course of
COMMISSION and IMELDA Maramara's investigation that Imelda
SALAZAR, respondents. Salazar violated company reglations by
Castillo, Laman, Tan & Pantaleon for involving herself in transactions
petitioner. conflicting with the company's interests.
Gerardo S. Alansalon for private Evidence showed that she signed as a
respondent. witness to the articles of partnership
between Yambao and Saldivar. It also
ROMERO, J.: appeared that she had full knowledge of
the loss and whereabouts of the Fedders
For private respondent Imelda L. Salazar, airconditioner but failed to inform her
it would seem that her close association employer.
with Delfin Saldivar would mean the loss
of her job. In May 1982, private Consequently, in a letter dated October 8,
respondent was employed by Globe- 1984, petitioner company placed private
Mackay Cable and Radio Corporation respondent Salazar under preventive
(GMCR) as general systems analyst. Also suspension for one (1) month, effective
employed by petitioner as manager for October 9, 1984, thus giving her thirty
technical operations' support was Delfin (30) days within which to, explain her
Saldivar with whom private respondent side. But instead of submitting an
was allegedly very close. explanations three (3) days later or on
October 12, 1984 private respondent filed
Sometime in 1984, petitioner GMCR, a complaint against petitioner for illegal
prompted by reports that company suspension, which she subsequently
equipment and spare parts worth amended to include illegal dismissal,
thousands of dollars under the custody of vacation and sick leave benefits, 13th
Saldivar were missing, caused the month pay and damages, after petitioner
investigation of the latter's activities. The notified her in writing that effective
report dated September 25, 1984 prepared November 8, 1984, she was considered
by the company's internal auditor, Mr. dismissed "in view of (her) inability to
Agustin Maramara, indicated that Saldivar refute and disprove these findings. 2
had entered into a partnership styled After due hearing, the Labor Arbiter in a
decision dated July 16, 1985, ordered asked to answer and explain. Such
petitioner company to reinstate private disciplinary measure is resorted to for the
respondent to her former or equivalent protection of the company's property
position and to pay her full backwages pending investigation any alleged
and other benefits she would have malfeasance or misfeasance committed by
received were it not for the illegal the employee. 5
dismissal. Petitioner was also ordered to Thus, it is not correct to conclude that
pay private respondent moral damages of petitioner GMCR had violated Salazar's
P50,000.00. 3 right to due process when she was
On appeal, public respondent National promptly suspended. If at all, the fault, lay
Labor Relations, Commission in the with private respondent when she ignored
questioned resolution dated December 29, petitioner's memorandum of October 8,
1987 affirmed the aforesaid decision with 1984 "giving her ample opportunity to
respect to the reinstatement of private present (her) side to the Management."
respondent but limited the backwages to a Instead, she went directly to the Labor
period of two (2) years and deleted the Department and filed her complaint for
award for moral damages. 4 illegal suspension without giving her
Hence, this petition assailing the Labor employer a chance to evaluate her side of
Tribunal for having committed grave the controversy.
abuse of discretion in holding that the
suspension and subsequent dismissal of But while we agree with the propriety of
private respondent were illegal and in Salazar's preventive suspension, we hold
ordering her reinstatement with two (2) that her eventual separation from
years' backwages. employment was not for cause.
What is the remedy in law to rectify an
On the matter of preventive suspension, unlawful dismissal so as to "make whole"
we find for petitioner GMCR. the victim who has not merely lost her job
which, under settled Jurisprudence, is a
The inestigative findings of Mr. property right of which a person is not to
Maramara, which pointed to Delfin be deprived without due process, but also
Saldivar's acts in conflict with his position the compensation that should have
as technical operations manager, accrued to her during the period when she
necessitated immediate and decisive was unemployed?
action on any employee closely,
associated with Saldivar. The suspension Art. 279 of the Labor Code, as amended,
of Salazar was further impelled by th.e provides:
discovery of the missing Fedders Security of Tenure. In cases of regular
airconditioning unit inside the apartment employment, the employer shall not
private respondent shared with Saldivar. terminate the services of an employee
Under such circumstances, preventive except for a just cause or when authorized
suspension was the proper remedial by this Title. An employee who is unjustly
recourse available to the company dismissed from work shall be entitled to
pending Salazar's investigation. By itself, reinstatement without loss of seniority
preventive suspension does, not signify rights and other privileges and to his full
that the company has adjudged the backwages, inclusive of allowances, and
employee guilty of the charges she was to his other benefits or their monetary
equivalent computed from the time his and Human Rights. 9
compensation was withheld from him up
to the time of his actual reinstatement. 6 The opening paragraphs on Labor states
(Emphasis supplied)
Corollary thereto are the following The State shall afford full protection to
provisions of the Implementing Rules and labor, local and overseas, organized and
Regulations of the Labor Code: unorganized, and promote full
employment and equality of employment
Sec. 2. Security of Tenure. In cases of opportunities for all.
regular employments, the employer shall
not terminate the services of an employee It shall guarantee the rights of all workers
except for a just cause as provided in the to self-organization, collective bargaining
Labor Code or when authorized by and negotiations, and peaceful concerted
existing laws. activities, including the right to strike in
accordance with law. They shall be
Sec. 3. Reinstatement. An employee entitled to security of tenure, humane
who is unjustly dismissed from work shall conditions of work, and a living wage.
by entitled to reinstatement without loss of They shall also participate in policy and
seniority rights and to backwages." 7 decision-making processes affecting their
(Emphasis supplied) rights and benefits is may be provided by
law. 10 (Emphasis supplied)
Before proceeding any furthers, it needs
must be recalled that the present Compare this with the sole.provision on
Constitution has gone further than the Labor in the 1973 Constitution under the
1973 Charter in guaranteeing vital social Article an Declaration of Principles and
and economic rights to marginalized State Policies that provides:
groups of society, including labor. Given
the pro-poor orientation of several Sec. 9. The state shall afford protection to
articulate Commissioners of the labor, promote full employment and
Constitutional Commission of 1986, it equality in employment, ensure equal
was not surprising that a whole new work opportunities regardless of sex, race,
Article emerged on Social Justice and or creed, and regulate the relations
Human Rights designed, among other between workers and employers. The
things, to "protect and enhance the right of State shall ensure the rights of workers to
all the people to human dignity, reduce self-organization, collective baegaining,
social, economic and political inequalities, security of tenure, and just and humane
and remove cultural inequities by conditions of work. The State may provide
equitably diffusing wealth and political for compulsory arbitration. 11
power for the common good."8 Proof of To be sure, both Charters recognize
the priority accorded to labor is that it "security of tenure" as one of the rights of
leads the other areas of concern in the labor which the State is mandated to
Article on Social Justice, viz., Labor ranks protect. But there is no gainsaying the fact
ahead of such topics as Agrarian and that the intent of the framers of the present
Natural Resources Reform, Urban Land Constitution was to give primacy to the
Roform and Housing, Health, Women, rights of labor and afford the sector "full
Role and Rights of Poople's Organizations protection," at least greater protection than
heretofore accorded them, regardless of no evidence to show an authorized, much
the geographical location of the workers less a legal, cause for the dismissal of
and whether they are organized or not. private respondent, she had every right,
not only to be entitled to reinstatement,
It was then CONCOM Commissioner, but ay well, to full backwages." 14
now Justice Hilario G. Davide, Jr., who The intendment of the law in prescribing
substantially contributed to the present the twin remedies of reinstatement and
formulation of the protection to labor payment of backwages is, in the former, to
provision and proposed that the same be restore the dismissed employee to her
incorporated in the Article on Social status before she lost her job, for the
Justice and not just in the Article on dictionary meaning of the word "reinstate"
Declaration of Principles and State is "to restore to a state, conditione
Policies "in the light of the special positions etc. from which one had been
importance that we are giving now to removed" 15 and in the latter, to give her
social justice and the necessity of back the income lost during the period of
emphasizing the scope and role of social unemployment. Both remedies, looking to
justice in national development." 12 the past, would perforce make her
If we have taken pains to delve into the "whole."
background of the labor provisions in our
Constitution and the Labor Code, it is but Sadly, the avowed intent of the law has at
to stress that the right of an employee not times been thwarted when reinstatement
to be dismissed from his job except for a has not been forthcoming and the hapless
just or authorized cause provided by law dismissed employee finds himself on the
has assumed greater importance under the outside looking in.
1987 Constitution with the singular
prominence labor enjoys under the article Over time, the following reasons have
on Social Justice. And this transcendent been advanced by the Court for denying
policy has been translated into law in the reinstatement under the facts of the case
Labor Code. Under its terms, where a case and the law applicable thereto; that
of unlawful or unauthorized dismissal has reinstatement can no longer be effected in
been proved by the aggrieved employee, view of the long passage of time (22 years
or on the other hand, the employer whose of litigation) or because of the realities of
duty it is to prove the lawfulness or the situation; 16 or that it would be
justness of his act of dismissal has failed "inimical to the employer's interest; " 17 or
to do so, then the remedies provided in that reinstatement may no longer be
Article 279 should find, application. feasible; 18 or, that it will not serve the best
Consonant with this liberalized stance vis- interests of the parties involved; 19 or that
a-vis labor, the legislature even went the company would be prejudiced by the
further by enacting Republic Act No. 6715 workers' continued employment; 20 or that
which took effect on March 2, 1989 that it will not serve any prudent purpose as
amended said Article to remove any when supervening facts have transpired
possible ambiguity that jurisprudence may which make execution on that score unjust
have generated which watered down the or inequitable 21 or, to an increasing
constitutional intent to grant to labor "full extent, due to the resultant atmosphere of
protection."13 "antipathy and antagonism" or "strained
To go back to the instant case, there being relations" or "irretrievable estrangement"
between the employer and the employee. antagonism may be generated as to
22
adversely affect the efficiency and
In lieu of reinstatement, the Court has productivity of the employee concerned.
variously ordered the payment of
backwages and separation pay 23 or solely A few examples, will suffice to illustrate
separation pay. 24 the Court's application of the above
In the case at bar, the law is on the side of principles: where the employee is a Vice-
private respondent. In the first place the President for Marketing and as such,
wording of the Labor Code is clear and enjoys the full trust and confidence of top
unambiguous: "An employee who is management; 28 or is the Officer-In-
unjustly dismissed from work shall be Charge of the extension office of the bank
entitled to reinstatement. . . . and to his where he works; 29 or is an organizer of a
full backwages. . . ." 25 Under the union who was in a position to sabotage
principlesof statutory construction, if a the union's efforts to organize the workers
statute is clears plain and free from in commercial and industrial
ambiguity, it must be given its literal establishments; 30 or is a warehouseman of
meaning and applied without attempted a non-profit organization whose primary
interpretation. This plain-meaning rule or purpose is to facilitate and maximize
verba legis derived from the maxim index voluntary gifts. by foreign individuals and
animi sermo est (speech is the index of organizations to the Philippines; 31 or is a
intention) rests on the valid presumption manager of its Energy Equipment Sales. 32
that the words employed by, the
legislature in a statute correctly express its Obviously, the principle of "strained
intent or will and preclude the court from relations" cannot be applied
construing it differently. 26 The legislature indiscriminately. Otherwisey
is presumed to know the meaning of the reinstatement can never be possible
words, to:have used words advisedly, and simply because some hostility is
to have expressed its intent by the use of invariably engendered between the parties
such words as are found in the statute. 27 as a result of litigation. That is human
Verba legis non est recedendum, or from nature. 33
the words of a statute there should be no
departure. Neither does the provision Besides, no strained relations should arise
admit of any qualification. If in the from a valid and legal act of asserting
wisdom of the Court, there may be a one's right; otherwise an employee who
ground or grounds for non-application of shall assert his right could be easily
the above-cited provision, this should be separated from the service, by merely
by way of exception, such as when the paying his separation pay on the pretext
reinstatement may be inadmissible due to that his relationship with his employer had
ensuing strained relations between the already become strained. 34
employer and the employee.
Here, it has not been proved that the
In such cases, it should be proved that the position of private respondent as systems
employee concerned occupies a position analyst is one that may be characterized as
where he enjoys the trust and confidence a position of trust and confidence such
of his employer; and that it is likely that if that if reinstated, it may well lead to
reinstated, an atmosphere of antipathy and strained relations between employer and
employee. Hence, this does not constitute complainant's sympathy would be with
an exception to the general rule mandating Saldivar" and its averment that Saldivar's
reinstatement for an employee who has investigation although unverified, was
been unlawfully dismissed. probably true, do not pass this Court's test.
36
While we should not condone the acts of
On the other hand, has she betrayed any disloyalty of an employee, neither should
confidence reposed in her by engaging in we dismiss him on the basis of suspicion
transactions that may have created conflict derived from speculative inferences.
of interest situations? Petitioner GMCR To rely on the Maramara report as a basis
points out that as a matter of company for Salazar's dismissal would be most
policy, it prohibits its employees from inequitous because the bulk of the
involving themselves with any company findings centered principally oh her
that has business dealings with GMCR. friend's alleged thievery and anomalous
Consequently, when private respondent transactions as technical operations'
Salazar signed as a witness to the support manager. Said report merely
partnership papers of Concave (a supplier insinuated that in view of Salazar's special
of Ultra which in turn is also a supplier of relationship with Saldivar, Salazar might
GMCR), she was deemed to have placed. have had direct knowledge of Saldivar's
herself in an untenable position as far as questionable activities. Direct evidence
petitioner was concerned. implicating private respondent is wanting
from the records.
However, on close scrutiny, we agree with
public respondent that such a It is also worth emphasizing that the
circumstance did not create a conflict of Maramara report came out after Saldivar
interests situation. As a systems analyst, had already resigned from GMCR on May
Salazar was very far removed from 31, 1984. Since Saldivar did not have the
operations involving the procurement of opportunity to refute management's
supplies. Salazar's duties revolved around findings, the report remained obviously
the development of systems and analysis one-sided. Since the main evidence
of designs on a continuing basis. In other obtained by petitioner dealt principally on
words, Salazar did not occupy a position the alleged culpability of Saldivar, without
of trust relative to the approval and his having had a chance to voice his side
purchase of supplies and company assets. in view of his prior resignation, stringent
examination should have been carried out
In the instant case, petitioner has to ascertain whether or not there existed
predicated its dismissal of Salazar on loss independent legal grounds to hold Salatar
of confidence. As we have held countless answerable as well and, thereby, justify
times, while loss of confidence or breach her dismissal. Finding none, from the
of trust is a valid ground for terminations records, we find her to have been
it must rest an some basis which must be unlawfully dismissed.
convincingly established. 35 An employee
who not be dismissed on mere WHEREFORE, the assailed resolution of
presumptions and suppositions. public respondent National Labor
Petitioner's allegation that since Salazar Relations Commission dated December
and Saldivar lived together in the same 29, 1987 is hereby AFFIRMED. Petitioner
apartment, it "presumed reasonably that GMCR is ordered to REINSTATE private
respondent Imelda Salazar and to pay her
back wages equivalent to her salary for a
period of two (2) years only.
This decision is immediately executory.
SO ORDERED.
MENDOZA, J.:
Relative thereto, the findings of the then Petitioner's contention is impressed with
Intermediate Appellate Court are merit. The provision of the above-quoted
undisputed that the levy on attachment Section 32, of the Insolvency Law is very
against the subject properties of the clear that attachments dissolved are
Gatmaytans, issued by the then Court of those levied within one (1) month next
First Instance of Pasig in Civil Case No. preceding the commencement of the
insolvency proceedings and judgments Insolvency Law. In the case of Velayo vs.
vacated and set aside are judgments Shell Co. of the Philippines (100 Phil.
entered in any action, including judgment 187, [1956]), this Court ruled that
entered by default or consent of the Sections 32 and 70 contemplate only acts
debtor, where the action was filed within and transactions occurring within 30 days
thirty (30) days immediately prior to the prior to the commencement of the
commencement of the insolvency proceedings in insolvency and,
proceedings. In short, there is a cut off consequently, all other acts outside of the
period one (1) month in attachment 30-day period cannot possibly be
cases and thirty (30) days in judgments considered as coming within the orbit of
entered in actions commenced prior to the their operation.
insolvency proceedings. Section 79, on
the other hand, relied upon by private Finally, petitioner correctly argued that the
respondents, provides for the right of the properties in question were never placed
plaintiff if the attachment is not dissolved under the jurisdiction of respondent
before the commencement of proceedings insolvency court so as to be made
in insolvency, or is dissolved by an available for the payment of claim filed
undertaking given by the defendant, if the against the Gatmaytans in the insolvency
claim upon which the attachment suit was proceedings.
commenced is proved against the estate of
the debtor. Therefore, there is no conflict Hence, the denial by respondent
between the two provisions. insolvency court to give due course to the
attachment and execution of Civil Case
But even granting that such conflict exists, No. 35946 of the CFI of Rizal constitutes
it may be stated that in construing a a freezing of the disposition of subject
statute, courts should adopt a construction properties by the former which were not
that will give effect to every part of a within its jurisdiction; undeniably, a grave
statute, if at all possible. This rule is abuse of discretion amounting to want of
expressed in the maxim, ut maqis valeat jurisdiction, correctable by certiorari.
quam pereat or that construction is to be
sought which gives effect to the whole of WHEREFORE, the March 31, 1986
the statute its every word. Hence, decision of the then Intermediate
where a statute is susceptible of more than Appellate Court is hereby Reversed and
one interpretation, the court should adopt SET ASIDE. The attachment and
such reasonable and beneficial execution sale in Civil Case No. 35946 of
construction as will render the provision the former CFI of Rizal are given due
thereof operative and effective and course and petitioner's ownership of
harmonious with each other (Javellana vs. subject properties covered by TCT Nos.
Tayo, 6 SCRA 1042 [1962]; Statutory 18905 and 40430 is ordered consolidated.
Construction by Ruben E. Agpalo, p. 182).
SO ORDERED.
Neither can the sheriff's sale in execution
of the judgment in favor of the petitioner
be considered as a fraudulent transfer or
preference by the insolvent debtors, which
constitute a violation of Sec. 70 of the
That on or before the 21st day of June,
1969, in the City of Cabanatuan, Republic
of the Philippines, and within the
jurisdiction of this Honorable Court, the
above-named accused, did then and there,
wilfully, unlawfully and feloniously act as
agent in the solicitation or procurement of
an application for insurance by soliciting
therefor the application of one Eugenio S.
Isidro, for and in behalf of Perla
Republic of the Philippines Compania de Seguros, Inc., a duly
SUPREME COURT organized insurance company, registered
Manila under the laws of the Republic of the
FIRST DIVISION Philippines, resulting in the issuance of a
Broad Personal Accident Policy No. 28PI-
G.R. No. L-39419 April 12, 1982 RSA 0001 in the amount not exceeding
MAPALAD AISPORNA, petitioner, FIVE THOUSAND PESOS (P5,000.00)
vs. dated June 21, 1969, without said accused
THE COURT OF APPEALS and THE having first secured a certificate of
PEOPLE OF THE PHILIPPINES, authority to act as such agent from the
respondents. office of the Insurance Commissioner,
Republic of the Philippines.
DE CASTRO, J.:
CONTRARY TO LAW.
In this petition for certiorari, petitioner- The facts, 4 as found by the respondent
accused Aisporna seeks the reversal of the Court of Appeals are quoted hereunder:
decision dated August 14, 19741 in CA-
G.R. No. 13243-CR entitled "People of IT RESULTING: That there is no debate
the Philippines, plaintiff-appellee, vs. that since 7 March, 1969 and as of 21
Mapalad Aisporna, defendant-appellant" June, 1969, appellant's husband, Rodolfo
of respondent Court of Appeals affirming S. Aisporna was duly licensed by
the judgment of the City Court of Insurance Commission as agent to Perla
Cabanatuan 2 rendered on August 2, 1971 Compania de Seguros, with license to
which found the petitioner guilty for expire on 30 June, 1970, Exh. C; on that
having violated Section 189 of the date, at Cabanatuan City, Personal
Insurance Act (Act No. 2427, as amended) Accident Policy, Exh. D was issued by
and sentenced her to pay a fine of P500.00 Perla thru its author representative,
with subsidiary imprisonment in case of Rodolfo S. Aisporna, for a period of
insolvency, and to pay the costs. twelve (12) months with beneficiary as
Ana M. Isidro, and for P5,000.00;
Petitioner Aisporna was charged in the apparently, insured died by violence
City Court of Cabanatuan for violation of during lifetime of policy, and for reasons
Section 189 of the Insurance Act on not explained in record, present
November 21, 1970 in an information 3 information was filed by Fiscal, with
which reads as follows: assistance of private prosecutor, charging
wife of Rodolfo with violation of Sec. 189
of Insurance Law for having, wilfully, while the Solicitor General, on behalf of
unlawfully, and feloniously acted, "as the respondent, filed a manifestation 10 in
agent in the solicitation for insurance by lieu of a Brief on May 3, 1975 reiterating
soliciting therefore the application of one his stand that the petitioner has not
Eugenio S. Isidro for and in behalf of violated Section 189 of the Insurance Act.
Perla Compaa de Seguros, ... without
said accused having first secured a In seeking reversal of the judgment of
certificate of authority to act as such agent conviction, petitioner assigns the
11
from the office of the Insurance following errors allegedly committed by
Commission, Republic of the the appellate court:
Philippines."
1. THE RESPONDENT COURT OF
and in the trial, People presented evidence APPEALS ERRED IN FINDING THAT
that was hardly disputed, that RECEIPT OF COMPENSATION IS NOT
aforementioned policy was issued with AN ESSENTIAL ELEMENT OF THE
active participation of appellant wife of CRIME DEFINED BY THE FIRST
Rodolfo, against which appellant in her PARAGRAPH OF SECTION 189 OF
defense sought to show that being the wife THE INSURANCE ACT.
of true agent, Rodolfo, she naturally
helped him in his work, as clerk, and that 2. THE RESPONDENT COURT OF
policy was merely a renewal and was APPEALS ERRED IN GIVING DUE
issued because Isidro had called by WEIGHT TO EXHIBITS F, F-1, TO F-17,
telephone to renew, and at that time, her INCLUSIVE SUFFICIENT TO
husband, Rodolfo, was absent and so she ESTABLISH PETITIONER'S GUILT
left a note on top of her husband's desk to BEYOND REASONABLE DOUBT.
renew ...
3. THE RESPONDENT COURT OF
Consequently, the trial court found herein APPEALS ERRED IN NOT
petitioner guilty as charged. On appeal, ACQUITTING HEREIN PETITIONER.
the trial court's decision was affirmed by
the respondent appellate court finding the We find the petition meritorious.
petitioner guilty of a violation of the first
paragraph of Section 189 of the Insurance The main issue raised is whether or not a
Act. Hence, this present recourse was filed person can be convicted of having
on October 22, 1974. 5 violated the first paragraph of Section 189
In its resolution of October 28, 1974, 6 this of the Insurance Act without reference to
Court resolved, without giving due course the second paragraph of the same section.
to this instant petition, to require the In other words, it is necessary to
respondent to comment on the aforesaid determine whether or not the agent
petition. In the comment 7 filed on mentioned in the first paragraph of the
December 20, 1974, the respondent, aforesaid section is governed by the
represented by the Office of the Solicitor definition of an insurance agent found on
General, submitted that petitioner may not its second paragraph.
be considered as having violated Section
189 of the Insurance Act. 8 On April 3, The pertinent provision of Section 189 of
1975, petitioner submitted his Brief 9 the Insurance Act reads as follows:
company or offers or assumes to act in the
No insurance company doing business negotiating of such insurance, shall be an
within the Philippine Islands, nor any insurance agent within the intent of this
agent thereof, shall pay any commission section, and shall thereby become liable to
or other compensation to any person for all the duties, requirements, liabilities, and
services in obtaining new insurance, penalties to which an agent of such
unless such person shall have first company is subject.
procured from the Insurance
Commissioner a certificate of authority to Any person or company violating the
act as an agent of such company as provisions of this section shall be fined in
hereinafter provided. No person shall act the sum of five hundred pesos. On the
as agent, sub-agent, or broker in the conviction of any person acting as agent,
solicitation of procurement of applications sub-agent, or broker, of the commission of
for insurance, or receive for services in any offense connected with the business
obtaining new insurance, any commission of insurance, the Insurance Commissioner
or other compensation from any insurance shall immediately revoke the certificate of
company doing business in the Philippine authority issued to him and no such
Islands, or agent thereof, without first certificate shall thereafter be issued to
procuring a certificate of authority so to such convicted person.
act from the Insurance Commissioner,
which must be renewed annually on the A careful perusal of the above-quoted
first day of January, or within six months provision shows that the first paragraph
thereafter. Such certificate shall be issued thereof prohibits a person from acting as
by the Insurance Commissioner only upon agent, sub-agent or broker in the
the written application of persons desiring solicitation or procurement of applications
such authority, such application being for insurance without first procuring a
approved and countersigned by the certificate of authority so to act from the
company such person desires to represent, Insurance Commissioner, while its second
and shall be upon a form approved by the paragraph defines who is an insurance
Insurance Commissioner, giving such agent within the intent of this section and,
information as he may require. The finally, the third paragraph thereof
Insurance Commissioner shall have the prescribes the penalty to be imposed for
right to refuse to issue or renew and to its violation.
revoke any such certificate in his
discretion. No such certificate shall be The respondent appellate court ruled that
valid, however, in any event after the first the petitioner is prosecuted not under the
day of July of the year following the second paragraph of Section 189 of the
issuing of such certificate. Renewal aforesaid Act but under its first paragraph.
certificates may be issued upon the Thus ... it can no longer be denied that
application of the company. it was appellant's most active endeavors
that resulted in issuance of policy to
Any person who for compensation solicits Isidro, she was there and then acting as
or obtains insurance on behalf of any agent, and received the pay thereof her
insurance company, or transmits for a defense that she was only acting as helper
person other than himself an application of her husband can no longer be sustained,
for a policy of insurance to or from such neither her point that she received no
compensation for issuance of the policy concludes that under the second paragraph
because any person who for compensation of Section 189, a person is an insurance
solicits or obtains insurance on behalf of agent if he solicits and obtains an
any insurance company or transmits for a insurance for compensation, but, in its
person other than himself an application first paragraph, there is no necessity that a
for a policy of insurance to or from such person solicits an insurance for
company or offers or assumes to act in the compensation in order to be called an
negotiating of such insurance, shall be an insurance agent.
insurance agent within the intent of this
section, and shall thereby become liable to We find this to be a reversible error. As
all the duties, requirements, liabilities, and correctly pointed out by the Solicitor
penalties, to which an agent of such General, the definition of an insurance
company is subject. paragraph 2, Sec. 189, agent as found in the second paragraph of
Insurance Law, Section 189 is intended to define the word
now it is true that information does not "agent" mentioned in the first and second
even allege that she had obtained the paragraphs of the aforesaid section. More
insurance, for compensation which is the significantly, in its second paragraph, it is
gist of the offense in Section 189 of the explicitly provided that the definition of
Insurance Law in its 2nd paragraph, but an insurance agent is within the intent of
what appellant apparently overlooks is Section 189. Hence Any person who
that she is prosecuted not under the 2nd for compensation ... shall be an insurance
but under the 1st paragraph of Sec. 189 agent within the intent of this section, ...
wherein it is provided that, No person Patently, the definition of an insurance
shall act as agent, sub-agent, or broker, in agent under the second paragraph holds
the solicitation or procurement of true with respect to the agent mentioned in
applications for insurance, or receive for the other two paragraphs of the said
services in obtaining new insurance any section. The second paragraph of Section
commission or other compensation from 189 is a definition and interpretative
any insurance company doing business in clause intended to qualify the term "agent"
the Philippine Island, or agent thereof, mentioned in both the first and third
without first procuring a certificate of paragraphs of the aforesaid section.
authority to act from the insurance
commissioner, which must be renewed Applying the definition of an insurance
annually on the first day of January, or agent in the second paragraph to the agent
within six months thereafter. mentioned in the first and second
paragraphs would give harmony to the
therefore, there was no technical defect in aforesaid three paragraphs of Section 189.
the wording of the charge, so that Errors 2 Legislative intent must be ascertained
and 4 must be overruled. 12 from a consideration of the statute as a
From the above-mentioned ruling, the whole. The particular words, clauses and
respondent appellate court seems to imply phrases should not be studied as detached
that the definition of an insurance agent and isolated expressions, but the whole
under the second paragraph of Section 189 and every part of the statute must be
is not applicable to the insurance agent considered in fixing the meaning of any of
mentioned in the first paragraph. its parts and in order to produce
Parenthetically, the respondent court harmonious whole. 13 A statute must be so
construed as to harmonize and give effect without a certificate of authority to act as
to all its provisions whenever possible. 14 an insurance agent, an information, failing
The meaning of the law, it must be borne to allege that the solicitor was to receive
in mind, is not to be extracted from any compensation either directly or indirectly,
single part, portion or section or from charges no offense. 18 In the case of Bolen
isolated words and phrases, clauses or vs. Stake, 19 the provision of Section 3750,
sentences but from a general consideration Snyder's Compiled Laws of Oklahoma
or view of the act as a whole. 15 Every part 1909 is intended to penalize persons only
of the statute must be interpreted with who acted as insurance solicitors without
reference to the context. This means that license, and while acting in such capacity
every part of the statute must be negotiated and concluded insurance
considered together with the other parts, contracts for compensation. It must be
and kept subservient to the general intent noted that the information, in the case at
of the whole enactment, not separately bar, does not allege that the negotiation of
and independently. 16 More importantly, an insurance contracts by the accused with
the doctrine of associated words (Noscitur Eugenio Isidro was one for compensation.
a Sociis) provides that where a particular This allegation is essential, and having
word or phrase in a statement is been omitted, a conviction of the accused
ambiguous in itself or is equally could not be sustained. It is well-settled in
susceptible of various meanings, its true Our jurisprudence that to warrant
meaning may be made clear and specific conviction, every element of the crime
by considering the company in which it is must be alleged and proved. 20
found or with which it is associated. 17 After going over the records of this case,
Considering that the definition of an We are fully convinced, as the Solicitor
insurance agent as found in the second General maintains, that accused did not
paragraph is also applicable to the agent violate Section 189 of the Insurance Act.
mentioned in the first paragraph, to WHEREFORE, the judgment appealed
receive a compensation by the agent is an from is reversed and the accused is
essential element for a violation of the acquitted of the crime charged, with costs
first paragraph of the aforesaid section. de oficio.
The appellate court has established
ultimately that the petitioner-accused did SO ORDERED.
not receive any compensation for the
issuance of the insurance policy of
Eugenio Isidro. Nevertheless, the accused
was convicted by the appellate court for,
according to the latter, the receipt of
compensation for issuing an insurance
policy is not an essential element for a
violation of the first paragraph of Section
189 of the Insurance Act.