Macariola v Asuncion, 114 SCRA 77 (1982)

Spanish Code of Commerce Provision Disqualifying Judges from Engaging in Commerce is Part of Spanish
Political Law Abrogated by Change of Sovereignty

FACTS:
The complainant alleged that respondent judge of the CFI violated paragraphs 1 and 5, Article. 14 of the
Code of Commerce (w/c prohibited judges, among others, from engaging in commerce, either in person or
in proxy or in the financial intervention in commercial or industrial companies w/in the limits of
the districts) when he associated himself w/ the Traders Manufacturing. & Fishing Industries, Inc. as a
stockholder and pres., said corp. having been organized to engage in business.

HELD:
Although this provision is incorporated in the Code of Commerce w/c is part of the commercial laws of the
Phils, it partakes of the nature of a political law as it regulates the relationship between the government and
certain public officers and employees, like justices and judges. Political law has been defined as that
branch of public law w/c deals w/ the organization and operation of the governmental organs of the
State and defines the relations of the state w/ the inhabitants of its territory. Specifically, Art. 14 of the
Code of Commerce partakes more of the nature of an administrative law bec. it regulates the
conduct of certain public officers and employees w/ respect to engaging in business; hence, political in
essence.

Upon the transfer of sovereignty from Spain to US, and later on from US to the Republic of the
Philippines., Article 14 of the said Code must be deemed to have been abrogated because where
there is change of sovereignty, the political laws of the former sovereign, whether compatible or
not w/ those of the new sovereign, are automatically abrogated, unless they are expressly re-enacted by
affirmative act of the new sovereign. There appears to be no enabling or affirmative act. Consequently, Art.
14 of the Code of Commerce has no legal and binding effect and cannot apply to respondent Judge.