Baviera v. Paglinawan, G.R.

168380, February 8, 2007, 515 SCRA 170

Facts:

Manuel Baviera was the former head of the HR Service Delivery and Industry Relations of
Standard Chartered Bank Philippines. The said bank however did not comply with the
conditions set forth by the BSP and was able to sell securities despite no registration with
the SEC. Petitioner entered into an Investment Trust Agreement with SCB wherein he
purchased $8000 worth of securities upon the bank’s promise of 40% return on his
investment. After 6 months however petitioner learned that the value of his investment
went down to $7000 and to only $3000. Petitioner then filed with DOJ a complaint for
violation of Section 8.1 of the Securities Regulation Code against private respondents but
was denied holding that it should have been filed with the SEC.

Issue:
W/N SEC has jurisdiction over the case?

Ruling:

Yes. The SEC has jurisdiction over the case. Under the doctrine of primary jurisdiction,
courts will not determine a controversy involving a question within the jurisdiction of an
administrative tribunal where the question demands the exercise of sound administrative
discretion requiring the specialized knowledge and expertise of said administrative
tribunal to determine technical and intricate matters of fact. A criminal charge for violation
of the Securities Regulation Code is a specialized dispute and therefore it must first be
referred to an administrative agency of special competence Thus, complaints pertaining to
any violation of the Code and its implementing rules should first be filed with the SEC.