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3083;
(a) The term "Nuclear Research Reactor Project" is meant the reactor
project established or to be established under the Agreement for
Cooperation between the Government of the Republic of the Philippines
and the Government of the United States of America signed on July 27,
1955, including its amendments.
(b) The term "liability" means any liability for personal injury or property
damage arising out of or resulting from a nuclear incident.
(c) The term "personal injury" means bodily injury, sickness, or disease,
including death resulting therefrom.
(e) The term "nuclear incident" means any occurrence causing personal
injury or property damage arising out of or resulting from the radioactive,
toxic, explosive, or other hazardous properties of radioactive material.
Section 3. In order to carry out the purpose of this Act and to adjudicate claims
for compensation for personal injury or property damage arising out of or
resulting from a nuclear incident, there is hereby created a Nuclear Indemnity
Board to be composed of the Vice-Chairman of the National Science
Development Board as Chairman, the Commissioner of the Philippine Atomic
Energy Commission and one other member to be appointed by the President of
the Philippines, with the consent of the Commission on Appointments, who
must be a diplomate in radiology or medical radio-therapy with at least five
years of clinical practice, as members.1awp++i1 The Vice-Chairman of the
National Science Development Board and the Commissioner of the Philippine
Atomic Energy Commission shall serve ex officio without extra compensation
and the third member shall receive a per diem of fifty pesos for each meeting
actually attended: Provided, That the monthly total of such per diem shall not
exceed two hundred pesos.1awp++i1 The operating expenses of the Nuclear
Indemnity Board shall be borne out of the regular appropriation of the National
Science Development Board.
No action, suit or proceeding for compensation for personal injury or property
damage arising out of or resulting from a nuclear incident may be instituted
against the designer, manufacturer, contractor and/or supplier of nuclear
equipment, and all such claims for compensation shall be filed with the Nuclear
Indemnity Board which is hereby exclusively empowered to settle the above-
mentioned claims on a fair and reasonable basis taking into due account the
purposes of this Act: Provided, However, That any provision of law to the
contrary notwithstanding, any such claim shall be barred unless brought within
ten years from the date of the event causing injury or damage and within two
years from time to time the injury or damage, or a subsequent aggravation
thereof, came to the knowledge of, or could have been ascertained by the
exercise of ordinary care by the aggrieved party: Provided, further, That the
proper courts of the Republic of the Philippines shall have exclusive jurisdiction
in the case of a nuclear incident occurring in the course of carriage of fuel
elements or other radioactive materials capable of causing a nuclear incident
belonging to or in the charge of the Philippine Government, or any of its
agencies or instrumentalities, where such nuclear incident occurs outside
Philippine territory: And Provided, finally, That the aggregate liability of the
Philippine Government under this Act shall not exceed the amount of five
million pesos which is hereby appropriated out of any funds in the National
Treasury not otherwise appropriated.
Section 4. For the purpose of carrying out its functions under this Act the
Nuclear Indemnity Board shall have the following powers:
(e) Such other powers as may be necessary to carry out the purposes of
this Act.
Section 5. Upon a showing that the government’s liability in any one incident
will probably exceed the limit of liability imposed by the preceding section, the
Board may, in its sound discretion, for the purpose of ensuring the equitable and
just distribution of damages, either issue orders apportioning the payments and
permitting partial payments to be made to claimants or issue an order setting
aside a part of the funds available for possible latent injuries not discovered
until a later time, or both.
Section 6. When a nuclear incident occurs, the Board shall investigate or cause
to be investigated the cause or extent of the damage and may for that purpose
compel all persons exposed to radiation to report to the Board for examination
not later than three months from the date of the order requiring their appearance.
In determining the amount of damages the Board may, in its sound discretion,
take into account the inexcusable violation of the foregoing obligation to report
to the Board for examination.
Section 7. The Nuclear Indemnity Board is hereby authorized to call upon the
National Science Development Board, the Philippine Atomic Energy
Commission and other government agencies and instrumentalities for assistance
and cooperation in the discharge of its powers, duties and functions under this
Act.
Section 8. Any aggrieved claimant may appeal from any final order, award or
decision of the Board to the Supreme Court in accordance with the provisions of
Rule forty-five of the Rules of Court. Findings of fact by the Board shall be
conclusive in the absence of fraud, collusion or evident mistake.
Background Facts:
Facts and Proceedings: After the labor disputes were resolved in favor of
UHELA, the Court of Industrial Relations (CIR) issued a decision that became
final and executory. This decision included an award of attorney's fees in favor
of Gabriel V. Manansala as counsel for UHELA. To satisfy the judgment and
the attorney's fees, the CIR issued a writ of execution. Gilbert P. Lorenzo was
appointed as an authorized deputy sheriff by the CIR to serve the notice of
garnishment on the Philippine National Bank (PNB). PNB, which held funds
deposited by the PHHC in its Quezon City branch, received the notice of
garnishment and filed a motion to quash it. PNB raised two main objections:
a. Appointment of Gilbert P. Lorenzo: PNB argued that Lorenzo's appointment
as an authorized deputy sheriff was contrary to law. PNB contended that the
Sheriff of Quezon City, not the Clerk of the CIR, was its Ex-Officio Sheriff and
had the authority to serve notices of garnishment. PNB claimed that the service
of the notice by the Clerk of the CIR was not in order.
b. "Public in Character" Funds: PNB also contended that the funds deposited by
the PHHC in its branch could be of a "public in character." While not
categorically asserting that the funds were public, PNB argued that the
possibility of their being public in character raised doubts about their
susceptibility to garnishment.
The CIR denied PNB's motion to quash the notice of garnishment, finding no
merit in PNB's arguments. The CIR pointed out that Republic Act No. 4201,
enacted on June 19, 1965, had already repealed Commonwealth Act No. 103
and granted the Clerk of the CIR the authority to serve as the Ex-Officio Sheriff.
The Clerk of the CIR's area of authority was coterminous with that of the Court
itself, which was national in nature. The CIR also noted that the appeal to the
Supreme Court by individual employees of PHHC, questioning the award of
attorney's fees to Atty. Gabriel V. Manansala, had been dismissed and had
become final and executory on August 9, 1970. Therefore, there was no reason
to withhold action on the case.
The CIR denied in a resolution dated September 22, 1970 and dissatisfied with
the CIR's decision and resolution, PNB filed a petition for certiorari with the
higher court, seeking to nullify the orders of the CIR and have the notice of
garnishment quashed.
Issues: Whether the appointment of Gilbert P. Lorenzo as an authorized deputy
sheriff was contrary to law.
Whether the funds deposited by PHHC in PNB could be considered "public in
character" and thus exempt from garnishment.
Court's Ruling and Reasoning: Appointment of Gilbert P. Lorenzo: The Court
ruled that Lorenzo's appointment as an authorized deputy sheriff to serve the
notice of garnishment was not contrary to law. It cited Republic Act No. 4201,
which had repealed Commonwealth Act No. 103 and granted the Clerk of the
CIR the authority to serve as the Ex-Officio Sheriff. The Clerk of the CIR had
the authority to issue writs of execution and notices of garnishment nationwide.
Therefore, Lorenzo's appointment was lawful, and PNB's objection on this
ground was not valid. "Public in Character" Funds: PNB argued that the funds
might be "public in character," and as such, they should be exempt from
garnishment. However, the Court cited the precedent set in the National
Shipyard and Steel Corporation v. Court of Industrial Relations case, which held
that even if a government-owned or controlled corporation had a government
connection, it still had a separate juridical personality and could be subjected to
garnishment. The Court emphasized that such entities could sue and be sued,
similar to private corporations, and their funds were not automatically immune
from garnishment. Additionally, the Court cited the Manila Hotel Employees
Association v. Manila Hotel Company case, which explained that when the
government engages in commercial business through a corporation, it abandons
its sovereign capacity and is treated like any other corporation. Therefore, the
"public in character" argument did not hold, and the funds of PHHC deposited
in PNB were subject to garnishment.
In conclusion, the Court found that the denial of PNB's motion to quash the
notice of garnishment was not a grave abuse of discretion. It held that the
appointment of Gilbert P. Lorenzo was valid, and the funds deposited by PHHC
in PNB were not exempt from garnishment due to their "public in character" but
rather were subject to execution in favor of the prevailing party. Consequently,
the petition for certiorari was dismissed, and PNB was ordered to comply with
the notice of garnishment. This case underscores the principle that government-
owned or controlled corporations, even if they have a government connection,
possess a separate juridical personality and can be sued and subjected to
garnishment like private corporations.
c) Execution- DFA V. NLRC 9/18/96;
Facts:
Main Issues:
Therefore, the Court granted the petition for certiorari, vacated the Labor
Arbiter's decision, and made the temporary restraining order permanent. The
decision dated August 31, 1993, was declared null and void.
CALOOCAN V. ALLARDE, 8/10/03;
The case involves a dispute between the City of Caloocan, Norma M.
Abracia, and Delfina Hernandez Santiago.
In 1972, the City Mayor of Caloocan abolished several positions in the
city government, including that of Assistant City Administrator held
by Delfina Hernandez Santiago.
Santiago and other affected employees challenged the abolition in
court, leading to legal proceedings.
In 1973, the court declared the abolition illegal and ordered the
reinstatement of the employees with back salaries.
The City Government of Caloocan appealed the decision multiple
times, reaching the Supreme Court.
In 1985, the Supreme Court ruled against the City Government,
upholding the reinstatement and back salaries.
Partial payment of back salaries was made in 1986, but a substantial
balance remained.
Legal disputes continued, and in 1991, a writ of execution was issued
to enforce Santiago's claim.
The City Government opposed the execution, arguing that Santiago
was not entitled to backwages for certain years.
Santiago sought clarification from the Civil Service Commission
(CSC) regarding her entitlement to back salaries.
The CSC initially ruled against Santiago, but the Supreme Court
eventually ruled in her favor in 1995.
In 1992, the City Council of Caloocan approved an ordinance to
allocate funds for Santiago's back salaries, including interest.
The City Mayor, however, refused to sign the check for Santiago's
payment despite approving the ordinance.
In response to the refusal, a court ordered the garnishment of the City's
funds deposited in the Philippine National Bank (PNB).
PNB complied with the court order and released the funds to the
Sheriff, settling Santiago's claim after 21 years.
During the proceedings, there were allegations of irregularities in the
auction sale of a City Government vehicle, but these were not
substantiated.
Norma M. Abracia, a city official, was cited for contempt for not
surrendering Division of City Schools vehicles, but she later agreed to
surrender them under certain conditions.
Main Issues:
Whether the garnishment of the City of Caloocan's funds deposited in a bank
was valid.
Whether the levy and sale of the City's vehicles to satisfy the judgment were
legal.
Whether the auction sale of one of the City's vehicles was tainted with
irregularities.
Whether the former City Mayor's refusal to sign a check for the payment of the
City's obligation constituted contempt of court.
Court's Ruling with Reasoning:
Garnishment of City Funds: The court ruled that while public funds are
generally exempt from garnishment, there is an exception when there is a
corresponding appropriation by law. In this case, the City Council of Caloocan
had approved and passed Ordinance No. 0134, Series of 1992, specifically
allocating the amount for Santiago's back salaries. Therefore, the exception
applied, and the garnishment of the funds was valid.
Levy and Sale of City Vehicles: The court found that the levy on the City's
vehicles had already been lifted by the trial court in an order dated November
10, 1992. Thus, this issue was rendered moot.
Auction Sale of City Vehicle: The court concluded that the auction sale of the
City's vehicle was conducted properly and in compliance with the rules on
public auctions. There was no substantial evidence to prove that the sheriff had
been negligent or that the auction was flawed.
Refusal of Former City Mayor to Sign Check: The court condemned the former
City Mayor's refusal to sign a check for the payment of the City's obligation as a
defiance of judicial processes and a violation of an ordinance he himself
approved. The court emphasized that justice had been served, and it would be
unjust to make Santiago refund the amount already paid to her.
In summary, the court upheld the validity of the garnishment of the City's funds
due to the existence of an appropriation ordinance. It declared the levy and sale
of the City's vehicles moot since the levy had already been lifted. It found no
irregularities in the auction sale of one of the City's vehicles. Finally, the court
criticized the former City Mayor's refusal to sign a check as an act of defiance
and upheld the judgment in favor of Santiago.
RP. V. HIDALGO 12/9/05
Main Issues: