LIBAN V. GORDON (G.R. NO.

175352;
JANUARY 18, 2011)
CASE DIGEST: DANTE V. LIBAN, REYNALDO M. BERNARDO and
SALVADOR M. VIARI, Petitioners, vs. RICHARD J. GORDON,
Respondent. PHILIPPINE NATIONAL RED CROSS, Intervenor.

FACTS: Respondent filed a motion for partial reconsideration on a Supreme

Court decision which ruled that being chairman of the Philippine National Red
Cross (PNRC) did not disqualify him from being a Senator, and that the charter
creating PNRC is unconstitutional as the PNRC is a private corporation and the
Congress is precluded by the Constitution to create such.The Court then ordered
the PNRC to incorporate itself with the SEC as a private corporation. Respondent
takes exception to the second part of the ruling, which addressed the
constitutionality of the statute creating the PNRC as a private corporation.
Respondent avers that the issue of constitutionality was only touched upon in the
issue of locus standi. It is a rule that the constitutionality will not be touched
upon if it is not the lis mota of the case. ADVERTISEMENT: Work from home! Be
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ISSUE: Was it proper for the Court to have ruled on the

constitutionality of the PNRC statute?

HELD: In the case at bar, the constitutionality of the PNRC statute was raised in
the issue of standing. As such, the Court should not have declared certain
provisions of such as unconstitutional. On the substantive issue, the PNRC is sui
generis. It is unlike the private corporations that the Constitution wants to
prevent Congress from creating. First, the PNRC is not organized for profit. It is
an organization dedicated to assist victims of war and administer relief to those
who have been devastated by calamities, among others. It is entirely devoted to
public service. It is not covered by the prohibition since the Constitution aims to
eliminate abuse by the Congress, which tend to favor personal gain. Secondly, the
PNRC was created in order to participate in the mitigation of the effects of war, as
embodied in the Geneva Convention. The creation of the PNRC is compliance
with international treaty obligations. Lastly, the PNRC is a National Society, an
auxiliary of the government. It is not like government instrumentalities and
GOCC.

The PNRC is regulated directly by international humanitarian law, as opposed to

local law regulating the other mentioned entities. As such, it was improper for the
Court to have declared certain portions of the PNRC statute as unconstitutional.
However, it is the stand of Justice Carpio that there is no mandate for the
Government to create a National Society to this effect. He also raises the fact that
the PNRC is not sui generis in being a private corporation organized for public
needs. Justice Abad is of the opinion that the PNRC is neither private or
governmental, hence it was within the power of Congress to create.