Professional Documents
Culture Documents
14
(iii) ISSUE: Whether the “grandfather rule” must be used to test that is provided in statute and by our most
determine the nationality of petitioners recent jurisprudence.
1) "Corporate layering" is admittedly allowed by the 2) The 1987 Constitution is silent on the precise
FIA; but if it is used to circumvent the Constitution means through which foreign equity in a
and pertinent laws, then it becomes illegal. corporation shall be determined for the purpose of
2) MR. NOLLEDO: With respect to an investment complying with nationalization requirements in each
by one corporation in another corporation, say, industry. If at all, it militates against the supposed
a corporation with 60-40 percent equity invests in preference for the Grandfather Rule that, its
another corporation which is permitted by the mention in the Constitutional Commission’s
Corporation Code, does the Committee adopt the deliberations notwithstanding, the 1987 Constitution
grandfather rule? was, ultimately, inarticulate on adopting a specific
MR. VILLEGAS: Yes, that is the understanding of test or means.
the Committee. 3) It is not proper to insist upon the Grandfather
MR. NOLLEDO: Therefore, we need additional Rule as enshrined in the Constitution – and as
Filipino capital? manifesting the sovereign people’s will – when
MR. VILLEGAS: Yes. the Constitution makes absolutely no mention
3) Elementary in statutory construction is when of it.
there is conflict between the Constitution and a 4) The intention of the framers of the Constitution,
statute, the Constitution will prevail. In this even assuming we could discover what it was,
instance, specifically pertaining to the provisions when it is not adequately expressed in the
under Art. XII of the Constitution on National Constitution, that is to say, what they meant when
Economy and Patrimony, Sec. 3 of the FIA will they did not say it, surely that has no binding force
have no place of application. upon us.
i. “The exploration, development, and utilization 5) The application of the Control Test is by no means
of natural resources shall be under the full antithetical to the avowed policy of a "national
control and supervision of the State. The State economy effectively controlled by Filipinos."156
may directly undertake such activities, or it may The Control Test promotes this policy.
enter into co-production, joint venture or 6) By owning 60% of B’s capital, A controls B.
production-sharing agreements with Filipino Likewise, by owning 60% of C’s capital, B controls
citizens, or corporations or associations at least C. From this, it follows, as a matter of transitivity,
sixty per centum of whose capital is owned by that A controls C; albeit indirectly, that is, through
such citizens.” B.
(iv) Leonen’s Dissent 7) This "control" holds true regardless of the
1) The so-called "Grandfather Rule" has no statutory aggregate foreign capital in B and C. As explained
basis. It is the Control Test that governs in in Gamboa, control by stockholders is a matter
determining Filipino equity in corporations. It is this
15
resting on the ability to vote in the election of exception to the absolute prohibition in the
directors Constitution. Clearly, it is patently unconstitutional.
c. UMALI vs COMELEC (GR 203974, April 22, 2014)
(i) ISSUE: Whether or not the term “qualified voters
therein” refers only to those in Cabanatuan City
1) Pursuant to established jurisprudence, the phrase
"by the qualified voters therein" in Sec. 453 should
be construed in a manner that will avoid conflict
with the Constitution.
2) The changes that will result from the conversion are
v. Principle of Constitutional Supremacy too substantial that there is a necessity for the
plurality of those that will be affected to approve it.
a. It is a supreme law to which all other laws must conform
3) It is observed that the conversion of a
and in accordance with which all private rights must be
component city into an HUC is substantial
determined and all public authority administered.
alteration of boundaries. Conversions were
b. TAWANG vs LA TRINIDAD (GR 166471, March 22,
2011) found to result in material changes in the
(i) ISSUE: Whether or not a public utility, such as the economic and political rights of the people and
LGUs affected.
respondent, may be exclusive in character
1) Basic is the rule of statutory construction that when 4) As the phrase implies, "substantial alteration of
the law is clear and unambiguous, the court is left boundaries" involves and necessarily entails a
change in the geographical configuration of a local
with no alternative but to apply the same according
to its clear language. government unit or units. However, the phrase
2) 1987 Constitution expressly prohibit the creation of "boundaries" should not be limited to the mere
franchises that are exclusive in character. They physical one, referring to the metes and bounds of
uniformly command that "nor shall such franchise x the LGU, but also to its political boundaries. It also
connotes a modification of the demarcation lines
x x be exclusive in character." This constitutional
prohibition is absolute and accepts no exception. between political subdivisions, where the LGU’s
On the other hand, PD No. 198, as amended, exercise of corporate power ends and that of the
allows the BOD of LTWD and LWUA to create other begins. And as a qualifier, the alteration must
be "substantial" for it to be within the ambit of the
franchises that are exclusive in character. Section
47 states that, "No franchise shall be granted to constitutional provision. Hence, all the registered
voters in the province are qualified to cast their
any other person or agency x x x unless and except
to the extent that the board of directors consents votes in resolving the proposed conversion of
thereto x x x subject to review by the Cabanatuan City.
d. ORDILLO vs COMELEC (GR 92649, February 14, 1991)
Administration." Section 47 creates a glaring
16
(i) ISSUE: Whether or not Ifugao can validly constitute the in life are less and limited, especially in terms of job
CAR marketability, it is they - and not the officers - who
1) The keywords — provinces, cities, municipalities have the real economic and financial need for the
and geographical areas connote that "region" is to adjustment
be made up of more than one constituent unit. The 3) They represent the more impotent rank-and-file
term "region" used in its ordinary sense means two government employees who, unlike employees in
or more provinces. the private sector, have no specific right to organize
2) From Sections 1 & 2 of Art. III of RA 6766, it can be as a collective bargaining unit and negotiate for
gleaned that Congress never intended that a single better terms and conditions of employment, nor the
province may constitute the autonomous region. power to hold a strike to protest unfair labor
Otherwise, we would be faced with the absurd practices. Not only are they impotent as a labor
situation of having two sets of officials, a set of unit, but their efficacy to lobby in Congress is
provincial officials and another set of regional almost nil as R.A. No. 7653 effectively isolated
officials exercising their executive and legislative them from the other GFI rank-and-file in
powers over exactly the same small area. compensation. These BSP rank-and-file employees
vi. Principle of Relative Unconstitutionality represent the politically powerless and they should
a. Where a portion of a statute is rendered unconstitutional not be compelled to seek a political solution to their
and the remainder valid, the parts will be separated, and unequal and iniquitous treatment.
the constitutional portion upheld.21 vii. Self-executing vs Need for Implementing Legislation
b. CB EMPLOYEES vs BSP (GR 148208, Dec. 15, 2004) a. GAMBOA vs FINANCE SEC (GR 176579 June 28, 2011)
(i) ISSUE: Whether or not the last proviso of Section (i) ISSUE: Whether or no Section 11 of Article XII of the
15(c), Article II of RA 7653 is unconstitutional Constitution is self-executing
1) A compensation structure, based on job evaluation (ii) Section 11, Article XII of the Constitution, like other
studies and wage surveys and subject to the provisions of the Constitution expressly reserving to
Board's approval, shall be instituted as an integral Filipinos specific areas of investment, such as the
component of the Bangko Sentral's human development of natural resources and ownership of
resource development program: xxx Provided, land, educational institutions and advertising business,
however, That compensation and wage is self-executing.
structure of employees whose positions fall (iii) Unless the contrary is clearly intended, the
under salary grade 19 and below shall be in provisions of the Constitution should be
accordance with the rates prescribed under considered self-executing, as a contrary rule would
Republic Act No. 6758. give the legislature discretion to determine when,
2) Considering that majority, if not all, the rank-and-file or whether, they shall be effective. These
employees consist of people whose status and rank provisions would be subordinated to the will of the
lawmaking body, which could make them entirely
21
Sta. Maria Persons and Family Relations Law p. 12
17
meaningless by simply refusing to pass the needed enactment of laws. The principles and state policies
implementing statute. enumerated in Article II and some sections of
(iv) Thus, the term capital in Section 11, Article XII of the Article XII are not "self-executing provisions, the
1987 Constitution refers only to shares of stock entitled disregard of which can give rise to a cause of
to vote in the election of directors, and thus in the action in the courts. They do not embody judicially
present case only to common shares, and not to the enforceable constitutional rights but guidelines for
total outstanding capital stock (common and non-voting legislation."
preferred shares). Considering that common shares 2) It is important that the legal right which is an
have voting rights which translate to control, as essential component of a cause of action be a
opposed to preferred shares which usually have no specific, operable legal right, rather than a
voting rights, the term capital in Section 11, Article XII constitutional or statutory policy
of the Constitution refers only to common shares. d. MANILA PRINCE vs GSIS (GR 122156 Feb 3, 1997)
(v) However, if the preferred shares also have the right to (i) Ubi jus ibi remedium – where there is a right there is
vote in the election of directors, then the term capital a remedy
shall include such preferred shares because the right (ii) ISSUE:
to participate in the control or management of the 1) Sec. 10, second par., Art. XII of the of the 1987
corporation is exercised through the right to vote in the Constitution is a mandatory, positive command
election of directors. In short, the term capital in which is complete in itself and which needs no
Section 11, Article XII of the Constitution refers only to further guidelines or implementing laws or rules
shares of stock that can vote in the election of for its enforcement. From its very words the
directors. This interpretation is consistent with the provision does not require any legislation to put
intent of the framers of the Constitution to place in the it in operation. It is per se judicially enforceable
hands of Filipino citizens the control and management When our Constitution mandates that [i]n the grant
of public utilities. of rights, privileges, and concessions covering
b. GUTIERREZ vs HoR COJ (GR 193459 Feb. 15, 2011) national economy and patrimony, the State shall
(i) ISSUE: Whether or not Section 3(8) of Article XI of the give preference to qualified Filipinos, it means just
1987 Constitution that — qualified Filipinos shall be preferred.
1) 2) And when our Constitution declares that a right
c. TANADA vs ANGARA (GR 118295 May 2, 1997) exists in certain specified circumstances an action
(i) ISSUE: Whether or not Section 19, Art. II of the 1987 may be maintained to enforce such right
Constitution is self-executing notwithstanding the absence of any legislation on
1) These principles in Article II are not intended to be the subject; consequently, if there is no statute
self-executing principles ready for enforcement especially enacted to enforce such
through the courts. They are used by the judiciary constitutional right, such right enforces itself
as aids or as guides in the exercise of its power of by its own inherent potency and puissance, and
judicial review, and by the legislature in its from which all legislations must take their bearings.
18
viii. Progressive Interpretation b. Special – which relates to particular persons or things of a
a. ORCEO vs COMELEC (GR 190779) class or to a particular community, individual, or thing
(i) ISSUE: Whether or not the COMELEC gravely abused c. Local – ordinances
its discretion in including airsoft guns and their iii. Permanent vs Temporary
replica/imitation in the term “firearm” in Resolution 3. Enactment of Statutes
8714 4. Single Subject Requirement
1) The inclusion of airsoft guns and airguns in the i. Sec. 26(1), Art VI – every billed passed by Congress shall
term "firearm" in Resolution No. 8714 for purposes embrace only one subject which shall be expressed in the title
of the gun ban during the election period is a thereof
reasonable restriction, the objective of which is to ii. LAMBINO vs COMELEC (GR 174153, October 25, 2009)
ensure the holding of free, orderly, honest, peaceful a. Section 4(4), Art XVIII. Within forty-five days from
and credible elections. ratification of these amendments, the interim Parliament
2) Where a rule or regulation has a provision not shall convene to propose amendments to, or revisions
expressly stated or contained in the statute of, this Constitution consistent with the principles of local
being implemented, that provision does not autonomy, decentralization and a strong bureaucracy.
necessarily contradict the statute. A legislative b. Section 4(4) is a subject matter totally unrelated to the shift
rule is in the nature of subordinate legislation, from the Bicameral-Presidential to the Unicameral-
designed to implement a primary legislation by Parliamentary system. American jurisprudence on
providing the details thereof. All that is required is initiatives outlaws this as logrolling - when the initiative
that the regulation should be germane to the petition incorporates an unrelated subject matter in
objects and purposes of the law; that the the same petition. This puts the people in a dilemma
regulation be not in contradiction to, but in since they can answer only either yes or no to the entire
conformity with, the standards prescribed by proposition, forcing them to sign a petition that effectively
the law. contains two propositions, one of which they may find
b) Statutes unacceptable.
1. Definition. A statute is an act of the legislature as an organized c. Whenever a bill becomes law through the initiative
body, expressed in the form, and passed according to the process, all of the problems that the single-subject rule
procedure, required to constitute it as part of the law of the land. was enacted to prevent are exacerbated. There is a
2. Types. greater danger of logrolling, or the deliberate
i. Public vs Private intermingling of issues to increase the likelihood of an
a. Public – one which affects the public at large initiative's passage, and there is a greater opportunity
b. Private – applies only to a specific person or subject for "inadvertence, stealth and fraud" in the enactment-
ii. General vs Special vs Local by-initiative process.
a. General – which applies to the whole state and operates d. The people who signed the signature sheets could not
throughout the state alike upon all the people or all of a have known that their signatures would be used to
class propose an amendment mandating the interim
19
Parliament to propose further amendments or i. TANADA vs. TUVERA (GR L-63915, April 24, 1985)
revisions to the Constitution. a. The clear object of the above-quoted provision is to give
e. The people are again left in the dark to fathom the the general public adequate notice of the various laws
nature and effect of the proposed changes. which are to regulate their actions and conduct as citizens.
iii. REMAN vs. PRC-REC (GR 197676, February 4, 2014) Without such notice and publication, there would be no
a. ISSUE: Whether or not RA 9646 is unconstitutional for basis for the application of the maxim "ignorantia legis
violating the “one-subject, one-title” rule non excusat." It would be the height of injustice to punish
(i) It is sufficient if the title be comprehensive enough or otherwise burden a citizen for the transgression of a law
reasonably to include the general object which a of which he had no notice whatsoever, not even a
statute seeks to effect, without expressing each and constructive one.
every end and means necessary or convenient for the ii. TANADA vs. TUVERA (GR L-63915, December 29, 1986)
accomplishing of that object. Mere details need not be a. the clause "unless it is otherwise provided" refers to the
set forth. date of effectivity and not to the requirement of
(ii) The inclusion of real estate developers is germane publication itself, which cannot in any event be
to the law’s primary goal of developing "a corps of omitted. This clause does not mean that the legislature
technically competent, responsible and respected may make the law effective immediately upon approval, or
professional real estate service practitioners whose on any other date, without its previous publication.
standards of practice and service shall be globally b. Publication is indispensable in every case, but the
competitive and will promote the growth of the real legislature may in its discretion provide that the usual
estate industry." Since the marketing aspect of real fifteen-day period shall be shortened or extended.
estate development projects entails the performance of c. Under Article 2 of the Civil Code, the publication of laws
those acts and transactions defined as real estate must be made in the Official Gazette and not elsewhere,
service practices under Section 3(g) of R.A. No. 9646, as a requirement for their effectivity
it is logically covered by the regulatory scheme to d. All statutes, including those of local application and
professionalize the entire real estate service sector. private laws, shall be published as a condition for their
5. Procedure for Passing a Bill effectivity, which shall begin fifteen days after publication
i. First and Second Reading unless a different effectivity date is fixed by the legislature.
ii. Third reading
iii. Conference Committee Reports
iv. President’s approval
6. President’s approval or veto
i. When not signed within 30 days from receipt
ii. When approved
iii. When vetoed, but repassed by Congress by 2/3 vote of all
its Members, each House voting separately
7. Publication Requirements
20