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Lozano vs. Martinez


FACTS: Petitioners were charged with violation
of Batas Pambansa Bilang 22 (Bouncing Check
Law). They moved seasonably to quash the
informations on the ground that the acts
charged did not constitute an o!ense, the
statute being unconstitutional. The motions
were denied by the respondent trial courts,
except in one case, wherein the trial court
declared the law unconstitutional and
Topics
dismissed the case. The parties adversely
a!ected thus appealed.
Academic Freedom
ISSUES: Administrative Law
Amnesty
1. Does BP 22 is violate the constitutional provision on non-imprisonment due to debt?
Appointing Power
2. Does it impair freedom of contract?
Barangay O!icials
3. Does it contravene the equal protection clause?
Bill of Rights

HELD: Calling Out Power


Civil Service Commission
1. The enactment of BP 22 is a valid exercise of the police power and is not repugnant to the Consented Search
constitutional inhibition against imprisonment for debt. The gravamen of the o!ense punished
Diplomatic Immunity
by BP 22 is the act of making and issuing a worthless check or a check that is dishonored upon
Doctrine of Condonation
its presentation for payment. It is not the non-payment of an obligation which the law punishes.
The law is not intended or designed to coerce a debtor to pay his debt. The thrust of the law is to Doctrine of Operative Facts
prohibit, under pain of penal sanctions, the making of worthless checks and putting them in Due Process
circulation. Because of its deleterious e!ects on the public interest, the practice is proscribed by Electoral Tribunals
the law. The law punishes the act not as an o!ense against property, but an o!ense against Emergency Powers
public order.
Equal Protection Clause
Estoppel
Unlike a promissory note, a check is not a mere undertaking to pay an amount of money. It is an
order addressed to a bank and partakes of a representation that the drawer has funds on Executive Clemency

deposit against which the check is drawn, su!icient to ensure payment upon its presentation to Executive Department
the bank. There is therefore an element of certainty or assurance that the instrument will be Executive Privilege
paid upon presentation. For this reason, checks have become widely accepted as a medium of Fiscal Autonomy
payment in trade and commerce. Although not legal tender, checks have come to be perceived
Freedom of Contract
as convenient substitutes for currency in commercial and financial transactions. The basis or
Implementing Rules
foundation of such perception is confidence. If such confidence is shaken, the usefulness of
checks as currency substitutes would be greatly diminished or may become nil. Any practice Judicial and Bar Council
therefore tending to destroy that confidence should be deterred for the proliferation of Judicial Review
worthless checks can only create havoc in trade circles and the banking community. Judiciary
Law of Public O!icers
The e!ects of the issuance of a worthless check transcends the private interests of the parties
Law on Public O!icers
directly involved in the transaction and touches the interests of the community at large. The Legislative Department
mischief it creates is not only a wrong to the payee or holder, but also an injury to the public. Legislative Investigation
The harmful practice of putting valueless commercial papers in circulation, multiplied a Local Government
thousand fold, can very wen pollute the channels of trade and commerce, injure the banking
Martial Law
system and eventually hurt the welfare of society and the public interest.
Military Powers

2. The freedom of contract which is constitutionally protected is freedom to enter into “lawful” Municipal Liability
contracts. Contracts which contravene public policy are not lawful. Besides, we must bear in Next-in-Rank
mind that checks can not be categorized as mere contracts. It is a commercial instrument which, Non-imprisonment for Debt
in this modem day and age, has become a convenient substitute for money; it forms part of the Pardon
banking system and therefore not entirely free from the regulatory power of the state.
Pardoning Power
Philippine National Police
3. There is no substance in the claim that the statute in question denies equal protection of the
laws or is discriminatory, since it penalizes the drawer of the check, but not the payee. It is Police Power

contended that the payee is just as responsible for the crime as the drawer of the check, since Political Question
without the indispensable participation of the payee by his acceptance of the check there would Power of Control
be no crime. This argument is tantamount to saying that, to give equal protection, the law Power of General Supervision
should punish both the swindler and the swindled. The petitioners’ posture ignores the well-
Power of Inquiry
accepted meaning of the clause “equal protection of the laws.” The clause does not preclude
Powers of the President
classification of individuals, who may be accorded di!erent treatment under the law as long as
the classification is not unreasonable or arbitrary. (Lozano vs Martinez, G.R. No. L-63419, Preventive Suspension

December 18, 1986) Promotion


Recall
Searches and Seizures
State Immunity from Suit
Suit Against International Organizations
Suit against Public O!icers
Term of O!ice
Three-Term Limit
Voluntary Renunciation
Warrant of Arrest

Blog Archive
LABELS: Equal Protection Clause, Freedom of Contract, Non-imprisonment for Debt, Police Power

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