2006 Bar Operations Commission Team Research

Head:
Sheila Panganiban

Political Law: Lei Almero, Flaj Gregorio, Kat Dilao
Criminal Law: Bing Torrecampo
Labor Law: Selch Sancho, Mhe Sangalang, Shei Panganiban
Legal Ethics: Gerlie Admana
Mercantile Law: Bunny Santayana, Shei Panganiban, Selch Sancho
Remedial Law: Mhe Sangalang, Shei Panganiban
Taxation Law: Gerlie Admana
Civil Law: Shie Labro, Bing Torrecampo, Bernice Catherine Santayana, Shei Panganiban, Gerlie Admana

2006 Taxation Case Digests

PERIOD TO ASSESS AND COLLECT TAX DEFICIENCY

ESTATE OF THE LATE JULIANA DIEZ VDA. DE GABRIEL vs. COMMISSIONER OF INTERNAL REVENUE
GR. No. 155541. January 27, 2004

Facts: During the lifetime of the decedent Juliana vda. De Gabriel, her business affairs were managed by the Philippine Trust Company (PhilTrust). The decedent died on April 3, 1979 but two days after her death, PhilTrust filed her income tax return for 1978 not indicating that the decedent had died. The BIR conducted an administrative investigation of the decedent’s tax liability and found a deficiency income tax for the year 1997 in the amount of P318,233.93. Thus, in November 18, 1982, the BIR sent by registered mail a demand letter and assessment notice addressed to the decedent “c/o PhilTrust, Sta. Cruz, Manila, which was the address stated in her 1978 income tax return. On June 18, 1984, respondent Commissioner of Internal Revenue issued warrants of distraint and levy to enforce the collection of decedent’s deficiency income tax liability and serve the same upon her heir, Francisco Gabriel. On November 22, 1984, Commissioner filed a motion to allow his claim with probate court for the deficiency tax. The Court denied BIR’s claim against the estate on the ground that no proper notice of the tax assessment was made on the proper party. On appeal, the CA held that BIR’s service on PhilTrust of the notice of assessment was binding on the estate as PhilTrust failed in its legal duty to inform the respondent of antecedent’s death. Consequently, as the estate failed to question the assessment within the statutory period of thirty days, the assessment became final, executory, and incontestable.

Issue: (1) Whether or not the CA erred in holding that the service of deficiency tax assessment on Juliana through PhilTrust was a valid service as to bind the estate.
(2) Whether or not the CA erred in holding that the tax assessment had become final, executory, and incontestable.

Held: (1) Since the relationship between PhilTrust and the decedent was automatically severed the moment of the taxpayer’s death, none of the PhilTrust’s acts or omissions could bind the estate of the taxpayer. Although the administrator of the estate may have been remiss in his legal obligation to inform respondent of the decedent’s death, the consequence thereof merely refer to the imposition of certain penal sanction on the administrator. These do not include the indefinite tolling of the prescriptive period for making deficiency tax assessment or waiver of the notice requirement for such assessment.
(2) The assessment was served not even on an heir or the estate but on a completely disinterested party. This improper service was clearly not binding on the petitioner. The most crucial point to be remembered is that PhilTust had absolutely no legal relationship with the deceased or to her Estate. There was therefore no assessment served on the estate as to the alleged underpayment of tax. Absent this assessment, no proceeding could be initiated in court for collection of said tax; therefore, it could not have become final, executory and incontestable. Respondent’s claim for collection filed with the court only on November 22, 1984 was barred for having been made beyond the five-year prescriptive period set by law.

TAX EXEMPTION; WITHDRAWAL OF TAX PRIVILEGES OF ELECTRIC COOPERATIVES BY THE LOCAL GOVERNMENT CODE

PHILIPPINE RURAL ELECTRIC COOPERATIVES ASSOCIATION, INC., et al. vs. THE SECRETARY OF DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT
GR. No. 143076. June 10, 2003

Facts: On May 23, 2003, a class suit was filed by petitioners in their own behalf and in behalf of other electric cooperatives organized and existing under PD 269 which are members of petitioner Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA). The other petitioners, electric cooperatives of Agusan del Norte (ANECO), Iloilo 1 (ILECO 1) and Isabela 1 (ISELCO 1) are non-stock, non-profit electric cooperatives organized and existing under PD 269, as amended, and registered with the National Electrification Administration (NEA).
Under Sec. 39 of PD 269 electric cooperatives shall be exempt from the payment of all National Government, local government, and municipal taxes and fee, including franchise, fling recordation, license or permit fees or taxes and any fees, charges, or costs involved in any court or administrative proceedings in which it may be party.
From 1971to 1978, in order to finance the electrification projects envisioned by PD 269, as amended, the Philippine Government, acting through the National Economic council (now National Economic Development Authority) and the NEA, entered into six loan agreements with the government of the United States of America, through the United States Agency for International Development (USAID) with electric cooperatives as beneficiaries. The loan agreements contain similarly worded provisions on the tax application of the loan and any property or commodity acquired through the proceeds of the loan.
Petitioners allege that with the passage of the Local Government Code their tax exemptions have been validly withdrawn. Particularly, petitioners assail the validity of Sec. 193 and 234 of the said code. Sec. 193 provides for the withdrawal of tax exemption privileges granted to all persons, whether natural or juridical, except cooperatives duly registered under RA 6938, while Sec. 234 exempts the same cooperatives from payment of real property tax.

Issue: (1) Does the Local Government Code (under Sec. 193 and 234) violate the equal protection clause since the provisions unduly discriminate against petitioners who are duly registered cooperatives under PD 269, as amended, and no under RA 6938 or the Cooperatives Code of the Philippines?
(2) Is there an impairment of the obligations of contract under the loan entered into between the Philippine and the US Governments?

Held: (1) No. The guaranty of the equal protection clause is not violated by a law based on a reasonable classification. Classification, to be reasonable must (a) rest on substantial classifications; (b) germane to the purpose of the law; (c) not limited to the existing conditions only; and (d) apply equally to all members of the same class. We hold that there is reasonable classification under the Local Government Code to justify the different tax treatment between electric cooperatives covered by PD 269 and electric cooperatives under RA 6938.
First, substantial distinctions exist between cooperatives under PD 269 and those under RA 6938. In the former, the government is the one that funds those so-called electric cooperatives, while in the latter, the members make equitable contribution as source of funds.
a. Capital Contributions by Members – Nowhere in PD 269 doe sit require cooperatives to make equitable contributions to capital. Petitioners themselves admit that to qualify as a member of an electric cooperative under PD 269, only the payment of a P5.00 membership fee is required which is even refundable the moment the member is no longer interested in getting electric service from the cooperative or will transfer to another place outside the area covered by the cooperative. However, under the Cooperative Code, the articles of cooperation of a cooperative applying for registration must be accompanied with the bonds of the accountable officers and a sworn statement of the treasurer elected by the subscribers showing that at least 25% of the authorized share capital has been subscribed and at least 25% of the total subscription has been paid and in no case shall the paid-up share capital be less than P2,000.00.
b. Extent of Government Control over Cooperatives – The extent of government control over electric cooperatives covered by PD 269 is largely a function of the role of the NEA as a primary source of funds of these electric cooperatives. It is crystal clear that NEA incurred loans from various sources to finance the development and operations of these electric cooperatives. Consequently, amendments were primarily geared to expand the powers of NEA over the electric cooperatives o ensure that loans granted to them would be repaid to the government. In contrast, cooperatives under RA 6938 are envisioned to be self-sufficient and independent organizations with minimal government intervention or regulation.
Second, the classification of tax-exempt entities in the Local Government Code is germane to the purpose of the law. The Constitutional mandate that “every local government unit shall enjoy local autonomy,” does not mean that the exercise of the power by the local governments is beyond the regulation of Congress. Sec. 193 of the LGC is indicative of the legislative intent to vet broad taxing powers upon the local government units and to limit exemptions from local taxation to entities specifically provided therein.
Finally, Sec. 193 and 234 of the LGC permit reasonable classification as these exemptions are not limited to existing conditions and apply equally to all members of the same class.

(2) No. It is ingrained in jurisprudence that the constitutional prohibition on the impairment of the obligations of contracts does not prohibit every change in existing laws. To fall within the prohibition, the change must not only impair the obligation of the existing contract, but the impairment must be substantial. Moreover, to constitute impairment, the law must affect a change in the rights of the parties with reference to each other and not with respect to non-parties.
The quoted provision under the loan agreement does not purport to grant any tax exemption in favor of any party to the contract, including the beneficiaries thereof. The provisions simply shift the tax burden, if any, on the transactions under the loan agreements to the borrower and/or beneficiary of the loan. Thus, the withdrawal by the Local Government Code under Sec. 193 and 234 of the tax exemptions previously enjoyed by petitioners does not impair the obligation of the borrower, the lender or the beneficiary under the loan agreements as, in fact, no tax exemption is granted therein.

TARIFF AND CUSTOMS LAWS; PRIMARY JURISDICTION OVER SEIZURE AND FORFEITURE CASES

Chief State Prosecutor JOVENCITO R. ZUÑO, ATTY. CLEMENTE P. HERALDO, Chief of the Internal Inquiry and Prosecution Division-customs Intelligence and Investigation Service (IIPD-CIIS), and LEONITO A. SANTIAGO, Special Investigator of the IIPD-CIIS vs. JUDGE ARNULFO G. CABREDO, Regional Trial Court, Branch 15, Tabaco City, Albay
AM. No. RTJ-03-1779, April 30, 2003

Facts: Atty. Winston Florin, the Deputy Collector of Customs of the Sub-Port of Tabaco, Albay, issued on September 3, 2001 Warrant of Seizure and Detention (WSD) No. 06-2001against a shipment of 35, 000 bags of rice aboard the vessel M/V Criston for violation of Sec. 2530 of the Tariff and Customs Code of the Philippines (TCCP).
A few days, after the issuance of the warrant of seizure and detention, Antonio Chua, Jr. and Carlos Carillo, claiming to be consignees of the subject goods, filed before the Regional Trial Court of Tabaco City, Albay a Petition with Prayer for the Issuance of Preliminary Injunction and Temporary Restraining Order (TRO). The said petition sought to enjoin the Bureau of Customs and its officials from detaining the subject shipment.
By virtue of said TRO, the 35,000 bags of rice were released from customs to Antonio Chua, Jr. and Carlos Carillo.
In his complaint, Chief State Prosecutor Zuño alleged that respondent Judge violated Administrative Circular No. 7-99, which cautions trial court judges in their issuance of TROs and writs of preliminary injunctions. Said circular reminds judges of the principle, enunciated in Mison vs. Natividad, that the Collector of Customs has exclusive jurisdiction over seizure and forfeiture proceedings, and regular courts cannot interfere with his exercise thereof or stifle or put it to naught.

Issue: Whether or not the issuance of the TRO was illegal and beyond the jurisdiction of the RTC.

Held: The collection of duties and taxes due on the seized goods is not the only reason why trial courts are enjoined from issuing orders releasing imported articles under seizure and forfeiture proceedings by the Bureau of Customs. Administrative Circular No. 7-99 takes into account the fact that the issuance of TROs and the granting of writs of preliminary injunction in seizure and forfeiture proceedings before the Bureau of Customs may arouse suspicion that the issuance or grant was fro considerations other than the strict merits of the case. Furthermore, respondent Judge’s actuation goes against settled jurisprudence that the Collector of Customs has exclusive jurisdiction over seizure and forfeiture proceedings, and regular courts cannot interfere with his exercise thereof or stifle and put it to naught.
Respondent Judge cannot claim that he issued the questioned TRO because he honestly believed tat the Bureau of Customs was effectively divested of its jurisdiction over the seized shipment.
Even if it be assumed that in the exercise of the Collector of Customs of its exclusive jurisdiction over seizure and forfeiture cases, a taint of illegality is correctly imputed, the most that can be said is that under these circumstance, grave abuse of discretion may oust it of its jurisdiction. This does mean, however, that the trial court is vested with competence to acquire jurisdiction over these seizure and forfeiture cases. The proceedings before the Collector of Customs are not final. An appeal lies to the Commissioner of Customs and, thereafter, to the Court of Tax Appeals. It may even reach this Court through an appropriate petition for review. Certainly, the RTC is not included therein. Hence, it is devoid of jurisdiction.
Clearly, therefore, respondent Judge had no jurisdiction to take cognizance of the petition and issue the questioned TRO.
It is a basic principle that the Collector of Customs has exclusive jurisdiction over seizure and forfeiture proceedings of dutiable goods. A studious and conscientious judge can easily be conversant with such an elementary rule.

NATURE OF FRANCHISE TAX; TAX EXEMPTION; WITHDRAWAL OF TAX PRIVILEGES BY THE LOCAL GOVERNMENT CODE

NATIONAL POWER CORPORATION vs. CITY OF CABANATUAN
GR. No. 149110, April 9, 2003

Facts: NAPOCOR, the petitioner, is a government-owed and controlled corporation created under Commonwealth Act 120. It is tasked to undertake the “development of hydroelectric generations of power and the production of electricity from nuclear, geothermal, and other sources, as well as, the transmission of electric power on a nationwide basis.”
For many years now, NAPOCOR sells electric power to the resident Cabanatuan City, posting a gross income of P107,814,187.96 in 1992. Pursuant to Sec. 37 of Ordinance No. 165-92, the respondent assessed the petitioner a franchise tax amounting to P808,606.41, representing 75% of 1% of the former’s gross receipts for the preceding year.
Petitioner, whose capital stock was subscribed and wholly paid by the Philippine Government, refused to pay the tax assessment. It argued that the respondent has no authority to impose tax on government entities. Petitioner also contend that as a non-profit organization, it is exempted from the payment of all forms of taxes, charges, duties or fees in accordance with Sec. 13 of RA 6395, as amended.
The respondent filed a collection suit in the RTC of Cabanatuan City, demanding that petitioner pay the assessed tax, plus surcharge equivalent to 25% of the amount of tax and 2% monthly interest. Respondent alleged that petitioner’s exemption from local taxes has been repealed by Sec. 193 of RA 7160 (Local Government Code). The trial court issued an order dismissing the case. On appeal, the Court of Appeals reversed the decision of the RTC and ordered the petitioner to pay the city government the tax assessment.

Issues: (1) Is the NAPOCOR excluded from the coverage of the franchise tax simply because its stocks are wholly owned by the National Government and its charter characterized is as a ‘non-profit organization’?
(2) Is the NAPOCOR’s exemption from all forms of taxes repealed by the provisions of the Local Government Code (LGC)?

Held: (1) NO. To stress, a franchise tax is imposed based not on the ownership but on the exercise by the corporation of a privilege to do business. The taxable entity is the corporation which exercises the franchise, and not the individual stockholders. By virtue of its charter, petitioner was created as a separate and distinct entity from the National Government. It can sue and be sued under its own name, and can exercise all the powers of a corporation under the Corporation Code.
To be sure, the ownership by the National Government of its entire capital stock does not necessarily imply that petitioner is no engage din business.
(2) YES. One of the most significant provisions of the LGC is the removal of the blanket exclusion of instrumentalities and agencies of the National Government from the coverage of local taxation. Although as a general rule, LGUs cannot impose taxes, fees, or charges of any kind on the National Government, its agencies and instrumentalities, this rule now admits an exception, i.e. when specific provisions of the LGC authorize the LGUs to impose taxes, fees, or charges on the aforementioned entities. The legislative purpose to withdraw tax privileges enjoyed under existing laws or charter is clearly manifested by the language used on Sec. 137 and 193 categorically withdrawing such exemption subject only to the exceptions enumerated. Since it would be tedious and impractical to attempt to enumerate all the existing statutes providing for special tax exemptions or privileges, the LGC provided for an express, albeit general, withdrawal of such exemptions or privileges. No more unequivocal language could have been used.

TAX EXEMPTIONS vs. TAX EXCLUSION; “IN LIEU OF ALL TAXES” PROVISION

PHILIPPINE LONG DISTANCE TELEPHONE COMPANY, INC. (PLDT) vs. CITY OF DAVAO and ADELAIDA B. BARCELONA, in her capacity as City Treasurer of Davao
GR. No. 143867, March 25, 2003

Facts: PLDT paid a franchise tax equal to three percent (3%) of its gross receipts. The franchise tax was paid “in lieu of all taxes on this franchise or earnings thereof” pursuant to RA 7082. The exemption from “all taxes on this franchise or earnings thereof” was subsequently withdrawn by RA 7160 (LGC), which at the same time gave local government units the power to tax businesses enjoying a franchise on the basis of income received or earned by them within their territorial jurisdiction. The LGC took effect on January 1, 1992.
The City of Davao enacted Ordinance No. 519, Series of 1992, which in pertinent part provides: Notwithstanding any exemption granted by law or other special laws, there is hereby imposed a tax on businesses enjoying a franchise, a rate of seventy-five percent (75%) of one percent (1%) of the gross annual receipts for the preceding calendar year based on the income receipts realized within the territorial jurisdiction of Davao City.
Subsequently, Congress granted in favor of Globe Mackay Cable and Radio Corporation (Globe) and Smart Information Technologies, Inc. (Smart) franchises which contained “in leiu of all taxes” provisos.
In 1995, it enacted RA 7925, or the Public Telecommunication Policy of the Philippines, Sec. 23 of which provides that any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or may hereafter be granted, shall ipso facto become part of previously granted telecommunications franchises and shall be accorded immediately and unconditionally to the grantees of such franchises. The law took effect on March 16, 1995.
In January 1999, when PLDT applied for a mayor’s permit to operate its Davao Metro exchange, it was required to pay the local franchise tax which then had amounted to P3,681,985.72. PLDT challenged the power of the city government to collect the local franchise tax and demanded a refund of what had been paid as a local franchise tax for the year 1997 and for the first to the third quarters of 1998.

Issue: Whether or not by virtue of RA 7925, Sec. 23, PLDT is again entitled to the exemption from payment of the local franchise tax in view of the grant of tax exemption to Globe and Smart.

Held: Petitioner contends that because their existing franchises contain “in lieu of all taxes” clauses, the same grant of tax exemption must be deemed to have become ipso facto part of its previously granted telecommunications franchise. But the rule is that tax exemptions should be granted only by a clear and unequivocal provision of law “expressed in a language too plain to be mistaken” and assuming for the nonce that the charters of Globe and of Smart grant tax exemptions, then this runabout way of granting tax exemption to PLDT is not a direct, “clear and unequivocal” way of communicating the legislative intent.
Nor does the term “exemption” in Sec. 23 of RA 7925 mean tax exemption. The term refers to exemption from regulations and requirements imposed by the National Telecommunications Commission (NTC). For instance, RA 7925, Sec. 17 provides: The Commission shall exempt any specific telecommunications service from its rate or tariff regulations if the service has sufficient competition to ensure fair and reasonable rates of tariffs. Another exemption granted by the law in line with its policy of deregulation is the exemption from the requirement of securing permits from the NTC every time a telecommunications company imports equipment.
Tax exemptions should be granted only by clear and unequivocal provision of law on the basis of language too plain to be mistaken.

REMEDIES OF A TAXPAYER UNDER THE NIRC; POWER OF THE CTA TO REVIEW RULINGS OR OPINIONS OF COMMISSIONER

COMMISSIONER OF INTERNAL REVENUE vs. LEAL
GR. No. 113459, November 18, 2002

Facts: Pursuant to Sec. 116 of the Tax Code which imposes percentage tax on dealers in securities and lending investors, the Commissioner of Internal Revenue issued Memorandum Order (RMO) No. 15-91 dated March 11, 1991, imposing five percent (5%) lending investor’s tax on pawnshops based on their gross income and requiring all investigating units of the Bureau to investigate and assess the lending investor’s tax due from them. The issuance of RMO No. 15-91 was an offshoot of petitioner’s evaluation that the nature of pawnshop business is akin to that of lending investors.
Subsequently, petitioner issued Revenue Memorandum Circular No. 43-91 dated May 27, 1992, subjecting the pawn ticket to the documentary stamp tax as prescribed in Title VII of the Tax Code.
Adversely affected by those revenue orders, herein respondent Josefina Leal, owner and operator of Josefina Pawnshop in San Mateo, Rizal, asked for a reconsideration of both RMO No. 15-91 and RMC No. 43-91 but the same was denied with finality by petitioner in October 30, 1991.
Consequently, on March 18, 1992, respondent filed with the RTC a petition for prohibition seeking to prohibit petitioner from implementing the revenue orders.
Petitioner, through the Office of the Solicitor-General, filed a motion to dismiss the petition on the ground that the RTC has no jurisdiction to review the questioned revenue orders and to enjoin their implementation. Petitioner contends that the subject revenue orders were issued pursuant to his power “to make rulings or opinions in connection with the Implementation of the provisions of internal revenue laws.” Thus, the case falls within the exclusive appellate jurisdiction of the Court of Tax Appeals, citing Sec. 7(1) of RA 1125.
The RTC issued an order denying the motion to dismiss holding that the revenue orders are not assessments to implement a Tax Code provision, but are “in effect new taxes (against pawnshops) which are not provided for under the Code,” and which only Congress is empowered to impose. The Court of Appeals affirmed the order issued by the RTC.

Issue: Whether or not the Court of Tax Appeals has jurisdiction to review rulings of the Commissioner implementing the Tax Code.

Held: The jurisdiction to review rulings of the Commissioner pertains to the Court of Tax Appeals and NOT to the RTC. The questioned RMO and RMC are actually rulings or opinions of the Commissioner implementing the Tax Code on the taxability of the Pawnshops.
Under RA 1125, An Act Creating the Court of Tax Appeals, such rulings of the Commissioner of Internal Revenue are appealable to that court:
Sec. 7 Jurisdiction – The Court of Tax Appeals shall exercise exclusive appellate jurisdiction to review by appeal, as herein provided—
1. Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto, or other matters arising under the National Revenue Code or other laws or part of law administered by the Bureau of Internal Revenue.
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tax remedies; section 220; who should institute appeal in tax cases

COMMISSIONER OF INTERNAL REVENUE vs. LA SUERTE CIGAR AND CIGARETTE FACTORY
GR. No. 144942, July 4, 2002

Facts: In its resolution, dated 15 November 2000, the Supreme Court denied the Petition for Review on Certiorari submitted by the Commissioner of Internal Revenue for non-compliance with the procedural requirement of verification explicit in Sec. 4, Rule 7 of the 1997 Rules of Civil Procedure and, furthermore, because the appeal was not pursued by the Solicitor-General. When the motion for reconsideration filed by the petitioner was likewise denied, petitioner filed the instant motion seeking an elucidation on the supposed discrepancy between the pronouncement of this Court, on the one hand that would require the participation of the Office of the Solicitor-General and pertinent provisions of the Tax Code, on the other hand, that allow legal officers of the Bureau of Internal Revenue (BIR) to institute and conduct judicial action in behalf of the Government under Sec, 220 of the Tax Reform Act of 1997.

Issue: Are the legal officer of the BIR authorized to institute appeal proceedings (as distinguished from commencement of proceeding) without the participation of the Solicitor-General?

Held: NO. The institution or commencement before a proper court of civil and criminal actions and proceedings arising under the Tax Reform Act which “shall be conducted y legal officers of the Bureau of Internal Revenue” is not in dispute. An appeal from such court, however, is not a matter of right. Sec. 220 of the Tax Reform Act must not be understood as overturning the long-established procedure before this Court in requiring the Solicitor-General to represent the interest of the Republic. This court continues to maintain that it is the Solicitor-General who has the primary responsibility to appear for the government in appellate proceedings. This pronouncement finds justification in the various laws defining the Office of the Solicitor-General, beginning with Act No. 135, which took effect on 16 June 1901, up to the present Administrative Code of 1987. Sec. 35, Chapter 12, Title III, Book IV of the said code outlines the powers and functions of the Office of the Solicitor General which includes, but not limited to, its duty to—
1. Represent the Government in the Supreme Court and the Court of Appeals in all criminal proceedings; represent the Government and its officers in the Supreme Court, the Court of Appeals, and all other courts or tribunals in all civil actions and special proceedings in which the Government or any officer thereof in his official capacity is a party.
2. Appear in any court in any action involving the validity of any treaty, law, executive order, or proclamation, rule or regulation when in his judgment his intervention is necessary or when requested by the Court.

TAX EXEMPTIONS; EXECUTIVE LEGISLATION

COCONUT OIL REFINERS ASSOCIATION, INC. et al vs. RUBEN TORRES, as Executive Secretary, et al
G.R. No. 132527. July 29, 2005

Facts: On March 13, 1992, RA No. 7227 was enacted, providing for, among other things, the sound and balanced conversion of the Clark and Subic military reservations and their extensions into alternative productive uses in the form of special economic zones in order to promote the economic and social development of Central Luzon in particular and the country in general. The law contains provisions on tax exemptions for importations of raw materials, capital and equipment. After which the President issued several Executive Orders as mandated by the law for the implementation of RA 7227. Herein petitioners contend the validity of the tax exemption provided for in the law.

Issue: Whether or not the Executive Orders issued by President for the implementation of the tax exemptions constitutes executive legislation.

Held: To limit the tax-free importation privilege of enterprises located inside the special economic zone only to raw materials, capital and equipment clearly runs counter to the intention of the Legislature to create a free port where the “free flow of goods or capital within, into, and out of the zones” is insured.
The phrase “tax and duty-free importations of raw materials, capital and equipment” was merely cited as an example of incentives that may be given to entities operating within the zone. Public respondent SBMA correctly argued that the maxim expressio unius est exclusio alterius, on which petitioners impliedly rely to support their restrictive interpretation, does not apply when words are mentioned by way of example. It is obvious from the wording of RA No. 7227, particularly the use of the phrase “such as,” that the enumeration only meant to illustrate incentives that the SSEZ is authorized to grant, in line with its being a free port zone.
The Court finds that the setting up of such commercial establishments which are the only ones duly authorized to sell consumer items tax and duty-free is still well within the policy enunciated in Section 12 of RA No. 7227 that “. . .the Subic Special Economic Zone shall be developed into a self-sustaining, industrial, commercial, financial and investment center to generate employment opportunities in and around the zone and to attract and promote productive foreign investments.” However, the Court reiterates that the second sentences of paragraphs 1.2 and 1.3 of Executive Order No. 97-A, allowing tax and duty-free removal of goods to certain individuals, even in a limited amount, from the Secured Area of the SSEZ, are null and void for being contrary to Section 12 of RA No. 7227. Said Section clearly provides that “exportation or removal of goods from the territory of the Subic Special Economic Zone to the other parts of the Philippine territory shall be subject to customs duties and taxes under the Customs and Tariff Code and other relevant tax laws of the Philippines.”

TAX EXEMPTIONS; NULLITY OF TAX DECLARATIONS AND TAX ASSESSMENTS

RADIO COMMUNICATIONS OF THE PHILIPPINES, INC. (RCPI), vs. PROVINCIAL ASSESOR OF SOUTH COTABATO, et al.
G.R. No. 144486. April 13, 2005

Facts: RCPI was granted a franchise under RA 2036, the law provides tax exemption for several properties of the company. Section 14 of RA 2036 reads: “In consideration of the franchise and rights hereby granted and any provision of law to the contrary notwithstanding, the grantee shall pay the same taxes as are now or may hereafter be required by law from other individuals, co partnerships, private, public or quasi-public associations, corporations or joint stock companies, on real estate, buildings and other personal property except radio equipment, machinery and spare parts needed in connection with the business of the grantee, which shall be exempt from customs duties, tariffs and other taxes, as well as those properties declared exempt in this section. In consideration of the franchise, a tax equal to one and one-half per centum of all gross receipts from the business transacted under this franchise by the grantee shall be paid to the Treasurer of the Philippines each year, within ten days after the audit and approval of the accounts as prescribed in this Act. Said tax shall be in lieu of any and all taxes of any kind, nature or description levied, established or collected by any authority whatsoever, municipal, provincial or national, from which taxes the grantee is hereby expressly exempted.” Thereafter, the municipal treasurer of Tupi, South Cotabato assessed RCPI real property taxes from 1981 to 1985. The municipal treasurer demanded that RCPI pay P166,810 as real property tax on its radio station building in Barangay Kablon, as well as on its machinery shed, radio relay station tower and its accessories, and generating sets. The Local Board of Assessment Appeals affirmed the assessment of the municipal treasurer. When the case reach the C A, it ruled that, petitioner is exempt from paying the real property taxes assessed upon its machinery and radio equipment mounted as accessories to its relay tower. However, the decision assessing taxes upon petitioner’s radio station building, machinery shed, and relay station tower is valid.

Issue: (1) Whether or not appellate court erred when it excluded RCPI’s tower, relay station building and machinery shed from tax exemption.
(2) Whether or not appellate court erred when it did not resolve the issue of nullity of the tax declarations and assessments due to non-inclusion of depreciation allowance.

Held: (1) RCPI’s radio relay station tower, radio station building, and machinery shed are real properties and are thus subject to the real property tax. Section 14 of RA 2036, as amended by RA 4054, states that “in consideration of the franchise and rights hereby granted and any provision of law to the contrary notwithstanding, the grantee shall pay the same taxes as are now or may hereafter be required by law from other individuals, co partnerships, private, public or quasi-public associations, corporations or joint stock companies, on real estate, buildings and other personal property.” The clear language of Section 14 states that RCPI shall pay the real estate tax.
(2) The court held the assessment valid. The court ruled that, records of the case shows that RCPI raised before the LBAA and the CBAA the nullity of the assessments due to the non-inclusion of depreciation allowance. Therefore, RCPI did not raise this issue for the first time. However, even if we consider this issue, under the Real Property Tax Code depreciation allowance applies only to machinery and not to real property.

SECRETARY OF FINANCE CANNOT PROMULGATE REGULATIONS FIXING A RATE OF PENALTY ON DELINQUENT TAXES

The Honorable Secretary of Finance vs. THE HONORABLE RICARDO M. ILARDE, Presiding Judge, Regional Trial Court, 6th Judicial Region, Branch 26, Iloilo City, and CIPRIANO P. CABALUNA, JR
G.R. No. 121782. May 9, 2005

Facts: Cabaluna with his wife owns several real property located in Iloilo City. Cabaluana is the Regional Director of Regional Office No. VI of the Department of Finance in Iloilo City. After his retirement, there are tax delinquencies on his properties; he paid the amount under protest contending that the penalties imposed to him are in excess than that provided by law. After exhausting all administrative remedies, he filed a suit before the RTC which found that Section 4(c) of Joint Assessment Regulation No. 1-85 and Local Treasury Regulation No. 2-85 issued on August 1, 1985 by respondent Secretary (formerly Minister) of Finance is null and void; (2) declaring that the penalty that should be imposed for delinquency in the payment of real property taxes should be two per centum on the amount of the delinquent tax for each month of delinquency or fraction thereof, until the delinquent tax is fully paid but in no case shall the total penalty exceed twenty-four per centum of the delinquent tax as provided for in Section 66 of P.D. 464 otherwise known as the Real Property Tax Code.

Issue: Whether or not the then Ministry of Finance could legally promulgate Regulations prescribing a rate of penalty on delinquent taxes other than that provided for under Presidential Decree (P.D.) No. 464, also known as the Real Property Tax Code.

Held: The Ministry of Finance now Secretary of Finance cannot promulgate regulations prescribing a rate of penalty on delinquent taxes. The Court ruled that despite the promulgation of E.O. No. 73, P.D. No. 464 in general and Section 66 in particular, remained to be good law. To accept the Secretary’s premise that E.O. No. 73 had accorded the Ministry of Finance the authority to alter, increase, or modify the tax structure would be tantamount to saying that E.O. No. 73 has repealed or amended P.D. No. 464. Repeal of laws should be made clear and expressed. Repeals by implication are not favored as laws are presumed to be passed with deliberation and full knowledge of all laws existing on the subject. Such repeals are not favored for a law cannot be deemed repealed unless it is clearly manifest that the legislature so intended it. Assuming argumenti that E.O. No. 73 has authorized the petitioner to issue the objected Regulations, such conferment of powers is void for being repugnant to the well-encrusted doctrine in political law that the power of taxation is generally vested with the legislature. Thus, for purposes of computation of the real property taxes due from private respondent for the years 1986 to 1991, including the penalties and interests, is still Section 66 of the Real Property Tax Code of 1974 or P.D. No. 464. The penalty that ought to be imposed for delinquency in the payment of real property taxes should, therefore, be that provided for in Section 66 of P.D. No. 464, i.e., two per centum on the amount of the delinquent tax for each month of delinquency or fraction thereof but “in no case shall the total penalty exceed twenty-four per centum of the delinquent tax.”

EVIDENCE IN TAX ASSESSMENTS; MACHINE COPIES OF RECORDS/ DOCUMENTS HAVE NO PROBATIVE VALUE

COMMISSION OF INTERNAL REVENUE vs. HANTEX TRADING CO., INC
G.R. No. 136975. March 31, 2005

Facts: Hantex Trading Co is a company organized under the Philippines. It is engaged in the sale of plastic products, it imports synthetic resin and other chemicals for the manufacture of its products. For this purpose, it is required to file an Import Entry and Internal Revenue Declaration (Consumption Entry) with the Bureau of Customs under Section 1301 of the Tariff and Customs Code. Sometime in October 1989, Lt. Vicente Amoto, Acting Chief of Counter-Intelligence Division of the Economic Intelligence and Investigation Bureau (EIIB), received confidential information that the respondent had imported synthetic resin amounting to P115,599,018.00 but only declared P45,538,694.57. Thus, Hentex receive a subpoena to present its books of account which it failed to do. The bureau cannot find any original copies of the products Hentex imported since the originals were eaten by termites. Thus, the Bureau relied on the certified copies of the respondent’s Profit and Loss Statement for 1987 and 1988 on file with the SEC, the machine copies of the Consumption Entries, Series of 1987, submitted by the informer, as well as excerpts from the entries certified by Tomas and Danganan. The case was submitted to the CTA which ruled that Hentex have tax deficiency and is ordered to pay, per investigation of the Bureau. The CA ruled that the income and sales tax deficiency assessments issued by the petitioner were unlawful and baseless since the copies of the import entries relied upon in computing the deficiency tax of the respondent were not duly authenticated by the public officer charged with their custody, nor verified under oath by the EIIB and the BIR investigators.

Issue: Whether or not the final assessment of the petitioner against the respondent for deficiency income tax and sales tax for the latter’s 1987 importation of resins and calcium bicarbonate is based on competent evidence and the law.

Held: Central to the second issue is Section 16 of the NIRC of 1977, as amended which provides that the Commissioner of Internal Revenue has the power to make assessments and prescribe additional requirements for tax administration and enforcement. Among such powers are those provided in paragraph (b), which provides that “Failure to submit required returns, statements, reports and other documents. – When a report required by law as a basis for the assessment of any national internal revenue tax shall not be forthcoming within the time fixed by law or regulation or when there is reason to believe that any such report is false, incomplete or erroneous, the Commissioner shall assess the proper tax on the best evidence obtainable.” This provision applies when the Commissioner of Internal Revenue undertakes to perform her administrative duty of assessing the proper tax against a taxpayer, to make a return in case of a taxpayer’s failure to file one, or to amend a return already filed in the BIR. The “best evidence” envisaged in Section 16 of the 1977 NIRC, as amended, includes the corporate and accounting records of the taxpayer who is the subject of the assessment process, the accounting records of other taxpayers engaged in the same line of business, including their gross profit and net profit sales. Such evidence also includes data, record, paper, document or any evidence gathered by internal revenue officers from other taxpayers who had personal transactions or from whom the subject taxpayer received any income; and record, data, document and information secured from government offices or agencies, such as the SEC, the Central Bank of the Philippines, the Bureau of Customs, and the Tariff and Customs Commission. However, the best evidence obtainable under Section 16 of the 1977 NIRC, as amended, does not include mere photocopies of records/documents. The petitioner, in making a preliminary and final tax deficiency assessment against a taxpayer, cannot anchor the said assessment on mere machine copies of records/documents. Mere photocopies of the Consumption Entries have no probative weight if offered as proof of the contents thereof. The reason for this is that such copies are mere scraps of paper and are of no probative value as basis for any deficiency income or business taxes against a taxpayer.

Companies exempt from zero-rate tax

COMMISSIONER OF INTERNAL REVENUE vs. AMERICAN EXPRESS INTERNATIONAL, INC.
(PHILIPPINE BRANCH),
G.R.No. 152609. June 29, 2005

Facts: American Express international is a foreign corporation operating in the Philippines, it is a registered taxpayer. On April 13, 1999, [respondent] filed with the BIR a letter-request for the refund of its 1997 excess input taxes in the amount of P3,751,067.04, which amount was arrived at after deducting from its total input VAT paid of P3,763,060.43 its applied output VAT liabilities only for the third and fourth quarters of 1997 amounting to P5,193.66 and P6,799.43, respectively. The CTA ruled in favor of the herein respondent holding that its services are subject to zero-rate pursuant to Section 108(b) of the Tax Reform Act of 1997 and Section 4.102-2 (b)(2) of Revenue Regulations 5-96. The CA affirmed the decision of the CTA.

Issue: Whether or not the company is subject to zero-rate tax pursuant to the Tax Reform Act of 1997.

Held: Services performed by VAT-registered persons in the Philippines (other than the processing, manufacturing or repacking of goods for persons doing business outside the Philippines), when paid in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP, are zero-rated. Respondent is a VAT-registered person that facilitates the collection and payment of receivables belonging to its non-resident foreign client, for which it gets paid in acceptable foreign currency inwardly remitted and accounted for in conformity with BSP rules and regulations. Certainly, the service it renders in the Philippines is not in the same category as “processing, manufacturing or repacking of goods” and should, therefore, be zero-rated. In reply to a query of respondent, the BIR opined in VAT Ruling No. 080-89 that the income respondent earned from its parent company’s regional operating centers (ROCs) was automatically zero-rated effective January 1, 1988. Service has been defined as “the art of doing something useful for a person or company for a fee” or “useful labor or work rendered or to be rendered by one person to another.” For facilitating in the Philippines the collection and payment of receivables belonging to its Hong Kong-based foreign client, and getting paid for it in duly accounted acceptable foreign currency, respondent renders service falling under the category of zero rating. Pursuant to the Tax Code, a VAT of zero percent should, therefore, be levied upon the supply of that service.
As a general rule, the VAT system uses the destination principle as a basis for the jurisdictional reach of the tax. Goods and services are taxed only in the country where they are consumed. Thus, exports are zero-rated, while imports are taxed. VAT rate for services that are performed in the Philippines, “paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP.” Thus, for the supply of service to be zero-rated as an exception, the law merely requires that first, the service be performed in the Philippines; second, the service fall under any of the However, the law clearly provides for an exception to the destination principle; that is, for a zero percent categories in Section 102(b) of the Tax Code; and, third, it be paid in acceptable foreign currency accounted for in accordance with BSP rules and regulations. Indeed, these three requirements for exemption from the destination principle are met by respondent. Its facilitation service is performed in the Philippines. It falls under the second category found in Section 102(b) of the Tax Code, because it is a service other than “processing, manufacturing or repacking of goods” as mentioned in the provision. Undisputed is the fact that such service meets the statutory condition that it be paid in acceptable foreign currency duly accounted for in accordance with BSP rules. Thus, it should be zero-rated.

2006 Remedial Law Case Digests

CIVIL PROCEDURE

MIGUELITO LIMACO, ET AL. VS. SHONAN GAKUEN CHILDREN'S HOUSE PHILIPPINES, INC.
G.R. No. 158245. June 30, 2005

Facts: Petitioners are the registered owners of three parcels of agricultural land. They entered into a Contract of Sale with respondent and agreed that "in the event that the parties herein are unable to effect the transfer and sale of the said properties in whole or in part in favor of the vendees, all the paid-in amounts shall be applied to another similar property also owned by the vendors in substitution of the above-described properties."
Pursuant to the contract, respondent corporation paid the down payment however; it refused to remit any monthly installment due to petitioners' failure to obtain a clearance and/or approval of the sale of the subject land from the Department of Agrarian Reform (DAR). Respondent demanded that petitioners either solve the problem with the land tenants or substitute the lots with another acceptable, suitable and untenanted land, pursuant to their agreement.
Petitioners informed respondent that they were ready to finalize the transaction in accordance with the legal opinion of the DAR. In a letter, respondent informed petitioners that the scheme proposed in the DAR Opinion was "far from acceptable." Respondent offered to purchase the property on a direct sale basis. Petitioners did not respond to respondent hence, the latter, through counsel, requested the return of its down payment. As petitioners did not acquiesce, respondent filed a complaint for rescission with damages with the Regional Trial Court (RTC) of Makati. As a countermove, petitioners filed the instant case for specific performance with the RTC of Laguna.
Respondent filed a motion to dismiss on the ground of litis pendentia. Petitioners opposed contending that the instant complaint for specific performance was served on respondent ahead of the service of the complaint for rescission on petitioners. Later, however, respondent withdrew its motion to dismiss in view of the order of the RTC of Makati dismissing the complaint for rescission. In its Answer with Counterclaim, respondent alleged by way of affirmative defense that "specific performance is not possible because the respondent had already bought another property which is untenanted, devoid of any legal complications and now converted from agricultural to non-agricultural purpose in accordance with DAR Administrative Order.
Thereafter, petitioners filed a Motion to Withdraw Complaint considering respondent's special defense that specific performance was no longer possible. They prayed that their complaint and respondent's counterclaim be ordered withdrawn or dismissed, arguing that respondent's counterclaim would have no leg to stand on as it was compulsory in nature.

Issue: Whether respondent's counterclaim should be dismissed.

Held: There are two ways by which an action may be dismissed upon the instance of the plaintiff. First, dismissal is a matter of right when a notice of dismissal is filed by the plaintiff before an answer or a motion for summary judgment has been served on him by the defendant. Second, dismissal is discretionary on the court when the motion for the dismissal of the action is filed by the plaintiff at any stage of the proceedings other than before service of an answer or a motion for summary judgment. While the dismissal in the first mode takes effect upon the mere notice of plaintiff without need of a judicial order, the second mode requires the authority of the court before dismissal of the case may be effected. This is so because in the dismissal of an action, the effect of the dismissal upon the rights of the defendant should always be taken into consideration.
In the case at bar, it is undisputed that petitioners filed a Motion to Withdraw Complaint after respondent already filed its answer with counterclaim. In fact, the reason for their motion for withdrawal was the special defense of respondent in its answer that substitution was no longer possible as it already bought another property in lieu of the subject lots under the contract. It is, therefore, inexplicable how petitioners could argue that their complaint was successfully withdrawn upon the mere filing of a Motion to Withdraw Complaint when they themselves alleged in this petition that "private respondent objected to the withdrawal and the Trial Court sustained the objection."


LUCIANO ELLO and GAUDIOSA ELLO, VS. THE COURT OF APPEALS ET AL.
G.R. No. 141255. June 21, 2005

Facts: Respondent Springfield Development Corporation is the owner and actual possessor of a lot covered by Transfer Certificate of Title (TCT) No. T-92571, while respondent Constantino Jaraula is the owner and actual possessor of a covered by TCT No. T-63088, both situated at Cagayan de Oro City. The two lots adjoin each other and were originally parts of a 12-hectare lot which has been developed by respondents as the Mega Heights Subdivision. Sometime in 1996, petitioner spouses Luciano and Gaudiosa Ello and their hired personnel surreptitiously and stealthily occupied respondents’ lots, built a make-shift shed under the trees, and fenced the area they occupied. Respondents then demanded that petitioners and their hired personnel vacate the area but they refused. Instead, they threatened and prevented respondents from developing their lots into a subdivision. Thus, respondent Springfield Development Corporation and Constantino G. Jaraula, filed a complaint against them for forcible entry with application for preliminary mandatory injunction.
Issue: Whether the Court of Appeals gravely abused its discretion when it dismissed outright petitioners’ petition for review on the sole technical ground that it does not contain the affidavit of service as required by Section 11 in relation to Section 13, Rule 13 of the 1997 Rules of Civil Procedure.
Held: Sections 3 and 5, Rule 13 of the 1997 Rules of Civil Procedure, as amended, prescribe two modes of filing and service of pleadings, motions, notices, orders, judgments and other papers. These are: (a) by personal delivery, governed by Section 6 of the same Rule; and (b) by mail, under Section 7 thereof.
However, Section 11 of Rule 13 requires that “whenever practicable,” the filing of pleadings and other papers in court, as well as the service of said papers on the adverse party or his counsel, must be done “personally.” But if such filing and service were through a different mode, the party concerned must submit a “written explanation” why they were not done personally.
There is no question that petitioners violated Section 11 of Rule 13 by failing to append the affidavit of service to their petition for review filed with the Court of Appeals. Petitioners, upon receipt of the Court of Appeals’ challenged Resolution dismissing outright their petition due to such omission, promptly filed a motion for reconsideration, readily acknowledging their procedural lapse and attaching therewith the required affidavit of service. Rules of procedure must be faithfully followed except only when for persuasive reasons, they may be relaxed to relieve a litigant of an injustice not commensurate with his failure to comply with the prescribed procedure.


EXECUTION OF COMPROMISE AGREEMENT; DELAY BY ONE PARTY JUSTIFIES EXECUTION

MANILA INTERNATIONAL AIRPORT AUTHORITY VS. ALA INDUSTRIES CORPORATION
G.R. No. 147349. February 13, 2004

Facts: The contract for the structural repair and waterproofing of the IPT and ICT building of the NAIA airport was awarded, after a public bidding, to respondent ALA. Respondent made the necessary repair and waterproofing.
After submission of its progress billings to the petitioner, respondent received partial payments. Progress billing remained unpaid despite repeated demands by the respondent. Meanwhile petitioner unilaterally rescinded the contract on the ground that respondent failed to complete the project within the agreed completion date.
Respondent objected to the rescission made by the petitioner and reiterated its claims. The trial court directed the parties to proceed to arbitration. Both parties executed a compromise agreement and jointly filed in court a motion for judgment based on the compromise agreement. The Court a quo rendered judgment approving the compromise agreement.
For petitioner’s failure to pay within the period stipulated, respondent filed a motion for execution to enforce its claim. Petitioner filed a comment and attributed the delays to its being a government agency. The trial court denied the respondent’s motion. Reversing the trial court, the CA ordered it to issue a writ of execution to enforce respondent’s claim. The appellate court ratiocinated that a judgment rendered in accordance with a compromise agreement was immediately executory, and that a delay was not substantial compliance therewith.

Issues: 1) Whether or not decision based on compromise agreement is final and executory.

2) Whether or not delay by one party on a compromise justifies execution.

Held: 1) A compromise once approved by final orders of the court has the force of res judicata between the parties and should not be disturbed except for vices of consent or forgery. Hence, a decision on a compromise agreement is final and executory. Such agreement has the force of law and is conclusive between the parties. It transcends its identity as a mere contract binding only upon the parties thereto, as it becomes a judgment that is subject to execution in accordance with the Rules. Judges therefore have the ministerial and mandatory duty to implement and enforce it.
2. The failure to pay on the date stipulated was clearly a violation of the Agreement. Thus, non-fulfillment of the terms of the compromise justified execution. It is the height of absurdity for petitioner to attribute to a fortuitous event its delayed payment. Petitioner’s explanation is clearly a gratuitous assertion that borders callousness.

TEMPORARY RESTRAINING ORDER; ISSUANCE OF TRO EX-PARTE; PRELIMINARY INJUNCTION; DUE PROCESS; PRESUMPTION OF COLD NEUTRALITY OF A JUDGE

BAILINANG MAROHOMBSAR VS. JUDGE SANTOS ADIONG
G.R. No. RTJ-02-1674. January 22, 2004

Facts: Complainant Marohombsar was the defendant in the civil case for injunction. The case was filed by Yasmira Pangadapun questioning the legality of Marohombsar’s appointment as Provincial Social Welfare Officer of the DSWD-ARMM. Prior to his appointment, Pangadapun used to occupy said position.
Upon the filing of the said complaint, respondent judge issued a TRO and set the hearing on the application for the issuance of the preliminary injunction. Summons, together with a copy of the complaint and a notice, was also served on both parties. Marohombsar filed an ex parte urgent motion to dissolve the TRO. Pangadapun was given the time to comment. Respondent judge issued an order stating that a preliminary conference had been held and that both parties had waived the raffle of the case and reset the hearing on the application for the issuance of a writ of injunction. The judge gave another time to file her comment again.
During the hearing on the application for the issuance of a writ of preliminary injunction, none of the lawyers appeared. Hence, respondent judge considered it submitted for resolution and issued the preliminary injunction. Hence, this complaint for gross ignorance of law, abuse of discretion and conduct unbecoming a judge.

Issues: 1) Whether or not TRO ex parte is allowed in the instant case.

2) Whether or not trial-type hearing is essential to due process.

3) Whether or not respondent judge erred in ordering the issuance of the writ of preliminary injunction.

Held: 1) A TRO is generally granted without notice to the opposite party and is intended only as a restraint on him until the propriety of granting a temporary injunction can be determined. It goes no further than to preserve the status quo until that determination. Respondent judge was justified in issuing the TRO ex parte due to his assessment of the urgency of the relief sought.
2) In applications for preliminary injunction, the dual requirement of prior notice and hearing before injunction may issue has been relaxed to the point that not all petitions for preliminary injunction need undergo a trial-type hearing, it being doctrinal that a formal or trial-type hearing is not, at all times and in all instances, essential to due process. The essence of due process is that a party is afforded a reasonable opportunity to be heard and to present any evidence he may have in support of his defense. It is a rule that a party cannot claim that he has been denied due process when he was given the opportunity to present his position.
3) As a matter of public policy, the acts of a judge in his official capacity are not subject to disciplinary action even though such acts are erroneous, provided he acts in good faith and without malice. Respondent judge, or any other member of the bench for that matter, is presumed to have acted regularly and in the manner that preserves the ideal of the cold neutrality of an impartial judge implicit in the guarantee of due process.


SERVICE OF SUMMONS, SUBSTITUTED SERVICE; SEVICE BY PUBLICATION; ACTIONS IN REM; ACTIONS QUASI IN REM

SPOUSES PATRICK AND RAFAELA JOSE VS. SPOUSES HELEN AND ROMEO BOYON
G.R. No. 147369. October 23, 2003

Facts: Petitioners lodged a complaint for specific performance against respondents to compel them to facilitate the transfer of ownership of a parcel of land subject of a controverted sale. The RTC issued a summons to respondents. As per return of the summons, substituted service was resorted to by the process server allegedly because efforts to serve personally to re respondents failed. Meanwhile, petitioners filed before the RTC an ex parte motion for leave of court to effect summons by publication and the judge issued an order granting the same. The respondents were declared in default and as a consequence of the declaration of default, petitioners were allowed to submit their evidence ex parte.
Helen Boyon, who was then in United Sates, was surprised to learn from her sister of the resolution issued by the court. Respondents filed an Ad Cautelam motion questioning, among others, the validity of the service of summons effected by the court a quo. The court issued an order denying the said motion on the basis of the defaulted respondent supposed loss of standing in court. Once again, the respondents raised the issue of the jurisdiction of the trial court via a motion for reconsideration and the same was denied. The petitioners moved for the execution of the controverted judgment which the judge granted.
Thereafter, respondents filed before the CA a petition for certiorari which held that the trial court had no authority to issue the questioned resolution and orders.

Issue: Whether or not summons by publication can validly serve in the instant case.

Held: In general, courts acquire jurisdiction over the person of the defendant by the service of summons, such service may be done personal or substituted service, where the action is in personam and the defendant is in the Philippines. However, extraterritorial service of summons or summons by publication applies only when the action is in rem or quasi in rem. That is, the action against the thing itself instead of against the defendant’s person if the action is in rem or an individual is named as defendant and the purpose is to subject the individual’s interest in a piece of property to the obligation or loan burdening it if quasi in rem.
In the instant case, what was filed before the trial court was an action for specific performance directed against respondents. While the suit incidentally involved a piece of land, the ownership or possession thereof was not put in issue. Moreover, court has consistently declared that an action for specific performance is an action in personam. Hence, summons by publication cannot be validly served.

JURISDICTION; RTC

RADIO COMMUNICATIONS OF THE PHILIPPINES, INC. VS. COURT OF APPEALS
386 SCRA 67. August 1, 2002

Facts: Private respondent Manuel Dulawon filed with the Regional Trial Court a complaint for breach of contract of lease with damages against petitioner Radio Communications of the Philippines, Inc. (RCPI). Petitioner filed a motion to dismiss the complaint for lack of jurisdiction contending that it is the Municipal Trial Court which has jurisdiction as the complaint is basically one for collection of unpaid rentals.

Issue: Whether or not the RTC has jurisdiction over the complaint filed by private respondent.

Held: RTC has jurisdiction over the complaint. The averments in the complaint reveal that the suit filed by private respondent was primarily one for specific performance as it was aimed to enforce their three-year lease contract which would incidentally entitle him to monetary awards if the court should find that the subject contract of lease was breached. As alleged therein, petitioner’s failure to pay rentals due for the period from January to March 1997, constituted a violation of their contract which had the effect of accelerating the payment of monthly rentals for the years 1997 and 1998. Clearly, the action for specific performance, irrespective of the amount of the rentals and damages sought to be recovered, is incapable of pecuniary estimation, hence, cognizable exclusively by the RTC.



CRIMINAL PROCEDURE

PRELIMINARY INVESTIGATION
SPO4 EDUARDO ALONZO VS. JUDGE CRISANTO C. CONCEPCION, Presiding Judge, Regional Trial Court of Malolos City, Branch 12, Province of Bulacan
A.M. No. RTJ-04-1879. January 17, 2005

Facts: In a wedding party, SPO4 Eduardo Alonzo, Jun Rances, Zoilo Salamat and Rey Santos were drinking together at the same table. While waiting to be seated, Pedrito Alonzo was introduced by SPO4 Alonzo to Rances as his nephew and as the son of ex-Captain Alonzo. SPO4 Alonzo then introduced him to Salamat. Pedrito and his companions took their seats and started drinking at the table across SPO4 Alonzo’s table. After some time, Pedrito stood up to urinate at the back of the house. Santos passed a bag to Salamat, and they followed Pedrito. Rances likewise followed them. A shot rang out. Salamat was seen placing a gun inside the bag as he hurriedly left. The wedding guests ran after Salamat. They saw him and Rances board a vehicle being driven by Santos. Pedrito’s uncle, Jose Alonzo, sought the help of SPO4 Alonzo to chase the culprits. He refused and even disavowed any knowledge as to their identity.
Jose Alonzo filed a complaint for murder against Salamat, Rances, Santos, SPO4 Alonzo and a certain Isidro Atienza. A preliminary investigation1 was conducted by the Assistant Provincial Prosecutor where Jose Alonzo and his four witnesses testified. Upon review of the records of the case by the 3rd Assistant Provincial Prosecutor, it was recommended that Salamat be charged with murder as principal, and Santos and Rances as accessories. With regard to SPO4 Alonzo and Isidro Atienza, the prosecutor found that no sufficient evidence was adduced to establish their conspiracy with Salamat. Judge Concepcion of the RTC issued an Order directing the Office of the Provincial Prosecutor to amend the information, so as to include all the aforenamed persons as accused in this case, all as principals.

Issue: Whether or not the court has authority to review and reverse the resolution of the Office of the Provincial Prosecutor or to find probable cause against a respondent for the purpose of amending the Information.

Held: The function of a preliminary investigation is to determine whether there is sufficient ground to engender a well-founded belief that a crime has been committed and the respondent is probably guilty thereof, and should be held for trial. It is through the conduct of a preliminary investigation that the prosecutor determines the existence of a prima facie case that would warrant the prosecution of a case. As a rule, courts cannot interfere with the prosecutor's discretion and control of the criminal prosecution. The reason for placing the criminal prosecution under the direction and control of the fiscal is to prevent malicious or unfounded prosecution by private persons. However, while prosecuting officers have the authority to prosecute persons shown to be guilty of a crime they have equally the legal duty not to prosecute when after an investigation, the evidence adduced is not sufficient to establish a prima facie case.
In a clash of views between the judge who did not investigate and the prosecutor who did, or between the fiscal and the offended party or the accused, that of the prosecutor's should normally prevail.

MELBA QUINTO VS. DANTE ANDRES and RANDYVER PACHECO
G.R. No. 155791. March 16, 2005

Facts: An Information was filed with the Regional Trial Court that the accused Dante Andres and Randyver Pacheco, conspiring, confederating, and helping one another, did then and there willfully, unlawfully, and feloniously attack, assault, and maul Wilson Quinto inside a culvert where the three were fishing, causing Wilson Quinto to drown and die. The respondents filed a demurer to evidence which the trial court granted on the ground of insufficiency of evidence. It also held that it could not hold the respondents liable for damages because of the absence of preponderant evidence to prove their liability for Wilson’s death. The petitioner appealed the order to the Court of Appeals insofar as the civil aspect of the case was concerned. The CA ruled that the acquittal in this case is not merely based on reasonable doubt but rather on a finding that the accused-appellees did not commit the criminal acts complained of. Thus, pursuant to the above rule and settled jurisprudence, any civil action ex delicto cannot prosper. Acquittal in a criminal action bars the civil action arising therefrom where the judgment of acquittal holds that the accused did not commit the criminal acts imputed to them.

Issue: Whether or not the extinction of respondent’s criminal liability carries with it the extinction of their civil liability.

Held: When a criminal action is instituted, the civil action for the recovery of civil liability arising from the offense charged shall be deemed instituted with the criminal action unless the offended party waives the civil action, reserves the right to institute it separately or institutes the civil action prior to the criminal action.
The prime purpose of the criminal action is to punish the offender in order to deter him and others from committing the same or similar offense, to isolate him from society, to reform and rehabilitate him or, in general, to maintain social order. The sole purpose of the civil action is the restitution, reparation or indemnification of the private offended party for the damage or injury he sustained by reason of the delictual or felonious act of the accused.
The extinction of the penal action does not carry with it the extinction of the civil action. However, the civil action based on delict shall be deemed extinguished if there is a finding in a final judgment in the criminal action that the act or omission from where the civil liability may arise does not exist. In this case, the petitioner failed to adduce proof of any ill-motive on the part of either respondent to kill the deceased and as held by the the trial court and the CA, the prosecution failed to adduce preponderant evidence to prove the facts on which the civil liability of the respondents rest, i.e., that the petitioner has a cause of action against the respondents for damages.

SEARCH WARRANT; PROBABLE CAUSE; WAIVER OF RIGHT TO QUESTION LEGALITY OF SEARCH; EVIDENCE IN ILLEGAL SEARCH

PEOPLE VS. BENHUR MAMARIL
G.R. No. 147607. January 22, 2004

Facts: SPO2 Chito Esmenda applied before the RTC for a search warrant authorizing the search for marijuana at the family residence of appellant Benhur. During the search operation, the searching team confiscated sachets of suspected marijuana leaves. Police officers took pictures of the confiscated items and prepared a receipt of the property seized and certified that the house was properly searched which was signed by the appellant and the barangay officials who witnessed the search.
After the search, the police officers brought appellant and the confiscated articles to the PNP station. After weighing the specimens and testing the same, the PNP Crime Laboratory issued a report finding the specimens to be positive to the test for the presence of marijuana. Moreover, the person who conducted the examination on the urine sample of appellant affirmed that it was positive for the same.
Appellant denied that he was residing at his parent’s house since he has been residing at a rented house and declared that it was his brother and the latter’s family who were residing with his mother, but on said search operation, his brother and family were out. He testified that he was at his parent’s house because he visited his mother, that he saw the Receipt of Property Seized for the first time during the trial and admitted that the signature on the certification that the house was properly search was his.

Issues: 1) Whether or not the trial court erred in issuing a search warrant.

2) Whether or not the accused-appellant waived his right to question the legality of the search.

3) Whether or not evidence seized pursuant to an illegal search be used as evidence against the accused.

Held: 1) The issuance of a search warrant is justified only upon a finding of probable cause. Probable cause for a search has been defined as such facts and circumstances which would lead a reasonably discreet and prudent man to believe that an offense has been committed and that the objects sought in connection with the offense are in the place sought to be searched. In determining the existence of probable cause, it is required that: 1) The judge must examine the complaint and his witnesses personally; 2) the examination must be under oath; 3) the examination must be reduced in writing in the form of searching questions and answers. The prosecution failed to prove that the judge who issued the warrant put into writing his examination of the applicant and his witnesses on the form of searching questions and answers before issuance of the search warrant. Mere affidavits of the complainant and his witnesses are not sufficient. Such written examination is necessary in order that the judge may be able to properly determine the existence and non-existence of probable cause. Therefore, the search warrant is tainted with illegality by failure of the judge to conform with the essential requisites of taking the examination in writing and attaching to the record, rendering the search warrant invalid.
2) At that time the police officers presented the search warrant, appellant could not determine if the search warrant was issued in accordance with law. It was only during the trial that appellant, through his counsel, had reason to believe that the search warrant was illegally issued. Moreover, appellant seasonably objected on constitutional grounds to the admissibility of the evidence seized pursuant to said warrant during the trial, after the prosecution formally offered its evidence. Under the circumstances, no intent to waive his rights can reasonably be inferred from his conduct before or during the trial.
3) No matter how incriminating the articles taken from the appellant may be, their seizure cannot validate an invalid warrant. The requirement mandated by the law that the examination of the complaint and his witnesses must be under oath and reduced to writing in the form of searching questions and answers was not complied with, rendering the search warrant invalid. Consequently, the evidence seized pursuant to illegal search warrant cannot be used in evidence against appellant in accordance with Section 3 (2) Article III of the Constitution.

JURISDICTION OVER THE PERSON; MOTION TO QUASH; ARREST WITHOUT WARRANT

PEOPLE VS. CRISPIN BILLABER
G.R. No. 114967-68. January 26, 2004

Facts: Private complainant Elizabeth Genteroy was introduced to accused Crispin Billaber by her friends. The accused told Genteroy that he could help her acquire the necessary papers and find her a job abroad. Genteroy introduced the accused to Raul Durano. The accused offered Durano a job as his personal driver in the U.S. Durano and Genteroy paid the accused and asked for receipt, but the accused said that it was not necessary since they will leave together.
Meanwhile, Genteroy introduced the accused to Tersina Onza and offered a job abroad. Thereafter, the accused instructed the three private complainants, Genteroy, Durano and Onza to meet him at the airport on the agreed date, however, the accused failed to show up.
Durano chanced upon the accused at the canteen. A commotion ensued when Durano tried to stop the accused from leaving. A police officer brought both Durano and the accused to the PNP station. The prosecution offered in evidence a certificate from the POEA stating that the accused was not licensed or authorized to recruit workers for employment abroad. The accused denied receiving money from private complainants and interposed a defense of frame-up and extortion against Durano.

Issues: 1) Whether or not the trial court erred in not considering that the accused arrested without warrant.

2) Whether or not the court acquired jurisdiction over the person of the accused.

Held: 1) It appears that accused-appellant was brought to the police station, together with the complainant Durano, not because of the present charges but because of the commotion that ensued between the two at the canteen. At the police station, Durano and the other complainants then executed statements charging appellant with illegal recruitment and estafa. As to whether there was an actual arrest or whether, in the commotion, the appellant committed, was actually committing, or was attempting to commit an offense, have been rendered moot.
2) Appellant did not allege any irregularity in a motion to quash before entering his plea, and is therefore deemed to have waived any question of the trial court’s jurisdiction over his person.


UNREASONABLE SEARCHES AND SEIZURES

PEOPLE VS. NOEL TUDTUD AND DINDO BOLONG
G.R. No. 144037, Sept.ember 26, 2003

Facts: Solier informed the police that Tudtud would come back with new stocks of marijuana. Policemen saw two men alighted from the bus, helping each other carry a carton/ box, one of them fitted the description of Tudtud. They approached the two and Tudtud denied that he carried any drugs. The latter opened the box, beneath dried fish where two bundles, one wrapped in a plastic bag and another in newspapers. Policemen asked Tudtud to unwrap the packages and contained what seemed to the police as marijuana leaves. The two did not resist the arrest. Charged with illegal possession of prohibited drugs, they pleaded not guilty and interposed the defense that they were framed up. The trial court convicted them with the crime charged and sentenced them to suffer the penalty of reclusion perpetua.

Issue: Whether or not searches and seizures without warrant may be validly obtained.

Held: The rule is that a search and seizure must be carried out through or with a judicial warrant; otherwise such “search and seizure” becomes reasonable within the meaning of the constitutional provision, and any evidence secured thereby will be inadmissible in evidence for any purpose in any proceeding. Except with the following instances even in the absence of a warrant: 1) Warrantless search incidental to a lawful arrest, 2) Search in evidence in plain view, 3) Search of a moving vehicle, 4) Consented warrantless search, 5) Customs search, 6) Stop and frisk and 7) Exigent and emergency circumstances.
The long –standing rule in this jurisdiction, applied with a degree of consistency, is that, a reliable information alone is not sufficient to justify a warrantless arrest. Hence, the items seized were held inadmissible, having been obtained in violation of the accused’s constitutional rights against unreasonable searches and seizures.

CIVIL ACTION ARISING FROM DELICT; EFFECT OF ACQUITTAL ON THE CIVIL ASPECT; EFFECT OF GRANT OF DEMURRER ON THE CIVIL ASPECT OF THE CASE

ANAMER SALAZAR VS. PEOPLE AND J.Y. BROTHERS MARKETING CORP.
G.R. No. 151931, September 23, 2003

Facts: Petitioner Anamer Salazar purchased 300 cavans of rice from J.Y. Brothers Marketing. As payment for these, she gave a check drawn against the Prudential Bank by one Nena Timario. J.Y. accepted the check upon the petitioner’s assurance that it was good check. Upon presentment, the check was dishonored because it was drawn under a closed account. Upon being informed of such dishonor, petitioner replaced the check drawn against the Solid Bank, which, however, was returned with the word “DAUD” (Drawn against uncollected deposit).
After the prosecution rested its case, the petitioner filed a Demurrer to Evidence with Leave of Court. The trial court rendered judgment acquitting the petitioner of the crime charged but ordering her to pay, as payment of her purchase. The petitioner filed a motion for reconsideration on the civil aspect of the decision with a plea that she be allowed to present evidence pursuant to Rule 33 of the Rules of Court, but the court denied the motion.

Issues: 1) Does the acquittal of the accused in the criminal offense prevent a judgment against her on the civil aspect of the case?
2) Was the denial of the motion for reconsideration proper?

Held: 1) The rule on the Criminal Procedure provides that the extension of the penal action does not carry with it the extension of the civil action. Hence, the acquittal of the accused does not prevent a judgment against him on the civil aspect of the case where a) the acquittal is based on reasonable doubt as only preponderance of evidence is required; b) where the court declared that the liability of the accused is only civil; c) where the civil liability of the accused does not arise from or is not based upon the crime of which the accused was acquitted.
2) No, because after an acquittal or grant of the demurrer, the trial shall proceed for the presentation of evidence on the civil aspect of the case. This is so because when the accused files a demurrer to evidence, the accused has not yet adduced evidence both on the criminal and civil aspect of the case. The only evidence on record is the evidence for the prosecution. What the trial court should do is to set the case for continuation of the trail for the petitioner to adduce evidence on the civil aspect and for the private offended party adduce evidence by way of rebuttal as provided for in Sec.11, Rule 119 of the Revised Rules on Criminal Procedure. Otherwise, it would be a nullity for the reason that the constitutional right of the accused to due process is thereby violated.

AMENDED RULES ON DEATH PENALTY CASES’ REVIEW
PEOPLE OF THE PHILIPPINES VS. MATEO
G.R. No. 147678-87, July 7, 2004

Facts: Appellant Efren Mateo was charged with ten counts of rape by his step-daughter Imelda Mateo. During the trial, Imelda’s testimonies regarding the rape incident were inconsistent. She said in one occasion that incident of rape happened inside her bedroom, but other times, she told the court that it happened in their sala. She also told the court that the appellant would cover her mouth but when asked again, she said that he did not. Despite the irreconcilable testimony of the victim, the trial court found the accused guilty of the crime of rape and sentenced him the penalty of reclusion perpetua. The Solicitor General assails the factual findings of the trial and recommends an acquittal of the appellant.
Issue: Whether or not this case is directly appeallable to the Supreme Court.
Held: While the Fundamental Law requires a mandatory review by the Supreme Court of cases where the penalty imposed is reclusion perpetua, life imprisonment, or death, nowhere, however, has it proscribed an intermediate review. If only to ensure utmost circumspection before the penalty of death, reclusion perpetua or life imprisonment is imposed, the Court now deems it wise and compelling to provide in these cases a review by the Court of Appeals before the case is elevated to the Supreme Court. Where life and liberty are at stake, all possible avenues to determine his guilt or innocence must be accorded an accused, and no case in the evaluation of the facts can ever be overdone. A prior determination by the Court of Appeals on, particularly, the factual issues, would minimize the possibility of an error of judgment. If the Court of Appeals should affirm the penalty of death, reclusion perpetua or life imprisonment, it could then render judgment imposing the corresponding penalty as the circumstances so warrant, refrain from entering judgment and elevate the entire records of the case to the Supreme Court for its final disposition.
Under the Constitution, the power to amend rules of procedure is constitutionally vested in the Supreme Court –
Article VIII, Section 5. The Supreme Court shall have the following powers:
“(5) Promulgate rules concerning the protection and enforcement of constitutional rights, pleading, practice, and procedure in all courts.”
Procedural matters, first and foremost, fall more squarely within the rule-making prerogative of the Supreme Court than the law-making power of Congress. The rule here announced additionally allowing an intermediate review by the Court of Appeals, a subordinate appellate court, before the case is elevated to the Supreme Court on automatic review is such a procedural matter.
Pertinent provisions of the Revised Rules on Criminal Procedure, more particularly Section 3 and Section 10 of Rule 122, Section 13 of Rule 124, Section of Rule 125, and any other rule insofar as they provide for direct appeals from the Regional Trial Courts to the Supreme Court in cases where the penalty imposed is death reclusion perpetua or life imprisonment, as well as the resolution of the Supreme Court en banc, dated 19 September 1995, in “Internal Rules of the Supreme Court” in cases similarly involving the death penalty, are to be deemed modified accordingly.
A.M. No. 00-5-03-SC

RE: AMENDMENTS TO THE
REVISED RULES OF CRIMINAL PROCEDURE
TO GOVERN DEATH PENALTY CASES

RESOLUTION
Acting on the recommendation of the Committee on Revision of the Rules of Court submitting for this Court’s consideration and approval the Proposed Amendments to the Revised Rules of Criminal Procedure to Govern Death Penalty Cases, the Court Resolved to APPROVE the same.
The amendment shall take effect on October 15, 2004 following its publication in a newspaper of general circulation not later than September 30, 2004
September 28, 2004
_____________________________________
AMENDED RULES TO GOVERN REVIEW OF
DEATH PENALTY CASES
Rule 122, Sections 3 and 10, and Rule 124, Sections 12 and 13, of the Revised Rules of Criminal Procedure, are amended as follows:
RULE 122
Sec. 3. How appeal taken – (a) The appeal to the Regional Trial Court, or to the Court of Appeals in cases decided by the Regional Trial Court in the exercise of its original jurisdiction, shall be by notice of appeal filed with the court which rendered the judgment or final order appealed from and by serving a copy thereof upon the adverse party.
(b) The appeal to the Court of Appeals in cases decided by the Regional Trial Court in the exercise of its appellate jurisdiction shall be by petition for review under Rule 42.
(c) The appeal in cases whereby the penalty imposed by the Regional Trial Court is reclusion perpetua, life imprisonment or where a lesser penalty is imposed for offenses committed on the same occasion on the or which arose out of the same occurrence that gave rise to the more serious offense for which the penalty of death, reclusion perpetua, or life imprisonment is imposed, shall be by notice of appeal to the Court of Appeals in accordance with paragraph (a) of this Rule.
(d) No notice of appeal is necessary in cases where the Regional Trial Court imposed the death penalty. The Court of Appeals shall automatically review the judgment as provided in Section 10 of this Rule. (3a)
xxx
RULE 124
Sec. 12. Power to receive evidence. – The Court of Appeals shall have the power to try cases and conduct hearings, receive evidence and perform all acts necessary to resolve the factual issues raised in cases falling within its original and appellate jurisdiction, including the power to grant and conduct new trials or further proceedings. Trials or hearing in the Court of Appeals must be continuous and must be completed within three months, unless extended by the Chief Justice. (12a)
Sec. 13. Certification or appeal of case to the Supreme Court. – (a) Whenever the Court of Appeals finds that the penalty of death should be imposed, the court shall render judgment but refrain from making an entry of judgment and forthwith certify the case and elevate its entire record to the Supreme Court for review.
(b) Where the judgment also imposes a lesser penalty for offenses committed on the same occasion or which arose out of the same occurrence that gave rise to the more severe offense for which the penalty is imposed, and the accused appeals, the appeal shall be included in the case certified for review to the Supreme Court.
(c) In cases where the Court of Appeals imposes reclusion perpetua, life imprisonment or a lesser penalty, it shall render and enter judgment imposing such penalty. The judgment may be appealed to the Supreme Court by notice of appeal file with the Court of Appeals. (13a)



EVIDENCE

INOCELIA S. AUTENCIO VS. CITY ADMINISTRATOR, RODEL M. MAÑARA ET AL.
G.R. No. 152752. January 19, 2005

Facts: City Administrator Rodel M. Mañara lodged a complaint against petitioner Inocelia S. Autencio with the Office of the City Mayor for dishonesty and misconduct in office. The complaint alleged that Riza Bravo, an employee of the City Assessor’s Office charged with the preparation of the payroll of casual employees, changed the September 1996 payroll prepared by her upon the order of petitioner. After hearing, the Office for Legal Services issued a resolution/decision, declaring the petitioner guilty of misconduct in office for allowing irregularities to happen which led to illegal payment of salaries to casuals. However, as regards to the charge of dishonesty, the same was found wanting due to insufficiency of evidence. A penalty of forced resignation with forfeiture of retirement benefits except for earned leave accumulated before the filing of the complaint was imposed. In return, petitioner alleged that she had waived her right to present her evidence at a formal hearing and agreed to submit the case for resolution, only because of the manifestation of the complainant and the hearing officer that she could be held liable only for the lesser offense of simple negligence.

Issue: Was the petitioner deprived of substantial due process?”

Held: Petitioner was afforded due process. On the formal charge against her, she had received sufficient information which, in fact, enabled her to prepare her defense. She filed her Answer controverting the charges against her and submitted Affidavits of personnel in the Assessor’s Office to support her claim of innocence. A pre-hearing conference was conducted by the legal officer, during which she -- assisted by her counsel -- had participated. Finally, she was able to appeal the ruling of City Mayor Badoy to the CSC, and then to the CA.
Finally, settled is the rule in our jurisdiction that the findings of fact of an administrative agency must be respected, so long as they are supported by substantial evidence. It is not the task of this Court to weigh once more the evidence submitted before the administrative body and to substitute its own judgment for that of the latter in respect of the sufficiency of evidence. In any event, the Decisions of the CSC and the Court of Appeals finding petitioner guilty of the administrative charge prepared against her are supported by substantial evidence.

TURADIO C. DOMINGO VS. JOSE C. DOMINGO ET AL.
G.R. No. 150897. April 11, 2005

Facts: Petitioner Turadio Domingo is the oldest of the five children of the late Bruno B. Domingo, formerly the registered owner of the properties subject of this dispute. Private respondents Leonora Domingo-Castro, Nuncia Domingo-Balabis, Abella Domingo, and Jose Domingo are petitioner’s siblings. A family quarrel arose over the validity of the purported sale of the house and lot by their father to private respondents. Sometime in 1981 petitioner, who by then was residing on the disputed property, received a notice, declaring him a squatter. Petitioner learned of the existence of the assailed Deed of Absolute Sale when an ejectment suit was filed against him. Subsequently, he had the then Philippine Constabulary-Integrated National Police (PC-INP, now Philippine National Police or PNP) Crime Laboratory compare the signature of Bruno on the said deed against specimen signatures of his father. As a result, the police issued him Questioned Document Report to the effect that the questioned signature and the standard signatures were written by two different persons Thus; petitioner filed a complaint for forgery, falsification by notary public, and falsification by private individuals against his siblings. But after it conducted an examination of the questioned documents, the National Bureau of Investigation (NBI) came up with the conclusion that the questioned signature and the specimen signatures were written by one and the same person, Bruno B. Domingo. Consequently, petitioner instituted a case for the declaration of the nullity of the Deed of Sale, reconveyance of the disputed property, and cancellation of TCT.

Issue: Whether or not the court errs when it held that the trial court correctly applied the rules of evidence in disregarding the conflicting PC-INP and NBI questioned document reports.

Held: Petitioner has shown no reason why the ruling made by the trial court on the credibility of the respondent’s witnesses below should be disturbed. Findings by the trial court as to the credibility of witnesses are accorded the greatest respect, and even finality by appellate courts, since the former is in a better position to observe their demeanor as well as their deportment and manner of testifying during the trial.
Finally, the questioned Deed of Absolute Sale in the present case is a notarized document. Being a public document, it is prima facie evidence of the facts therein expressed. It has the presumption of regularity in its favor and to contradict all these, evidence must be clear, convincing, and more than merely preponderant. Petitioner has failed to show that such contradictory evidence exists in this case.

2006 Criminal Law Case Digests

EVANGELINE LADONGA VS. PEOPLE OF THE PHILIPPINES
G.R. No. 141066. February 17, 2005


Facts: In 1989, spouses Adronico and Evangeline Ladonga became Alfredo Oculam’s regular customers in his pawnshop business. Sometime in May 1990, the Ladonga spouses obtained a P9,075.55 loan from him, guaranteed by United Coconut Planters Bank (UCPB) Check No. 284743, post dated to July 7, 1990 issued by Adronico; sometime in the last week of April 1990 and during the first week of May 1990, the Ladonga spouses obtained an additional loan of P12,730.00, guaranteed by UCPB Check No. 284744, post dated to July 26, 1990 issued by Adronico; between May and June 1990, the Ladonga spouses obtained a third loan in the amount of P8,496.55, guaranteed by UCPB Check No. 106136, post dated to July 22, 1990 issued by Adronico; the three checks bounced upon presentment for the reason “CLOSED ACCOUNT”; when the Ladonga spouses failed to redeem the check, despite repeated demands, he filed a criminal complaint against them. While admitting that the checks issued by Adronico bounced because there was no sufficient deposit or the account was closed, the Ladonga spouses claimed that the checks were issued only to guarantee the obligation, with an agreement that Oculam should not encash the checks when they mature; and, that petitioner is not a signatory of the checks and had no participation in the issuance thereof. The RTC rendered a joint decision finding the Ladonga spouses guilty beyond reasonable doubt of violating B.P. Blg. 22. Petitioner brought the case to the Court of Appeals. The Court of Appeals affirmed the conviction of petitioner.

Issue: Whether or not the petitioner who was not the drawer or issuer of the three checks that bounced but her co-accused husband under the latter’s account could be held liable for violations of Batas Pambansa Bilang 22 as conspirator.

Held: The conviction must be set aside. Article 8 of the RPC provides that “a conspiracy exists when two or more persons come to an agreement concerning the commission of a felony and decide to commit it.” To be held guilty as a co-principal by reason of conspiracy, the accused must be shown to have performed an overt act in pursuance or furtherance of the complicity. The overt act or acts of the accused may consist of active participation in the actual commission of the crime itself or may consist of moral assistance to his co-conspirators by moving them to execute or implement the criminal plan. In the present case, the prosecution failed to prove that petitioner performed any overt act in furtherance of the alleged conspiracy. Apparently, the only semblance of overt act that may be attributed to petitioner is that she was present when the first check was issued. However, this inference cannot be stretched to mean concurrence with the criminal design. Conspiracy must be established, not by conjectures, but by positive and conclusive evidence. Conspiracy transcends mere companionship and mere presence at the scene of the crime does not in itself amount to conspiracy. Even knowledge, acquiescence in or agreement to cooperate, is not enough to constitute one as a party to a conspiracy, absent any active participation in the commission of the crime with a view to the furtherance of the common design and purpose

PEOPLE OF THE PHILIPPINES VS. ANTONIO MENDOZA Y BUTONES
G.R. No. 152589 & 152758. January 31, 2005

Facts: Before us is the Motion for Reconsideration filed by herein accused-appellant of our Decision dated 24 October 2003 in G.R. No. 152589 and No. 152758. In said decision, we modified the ruling of the Regional Trial Court (RTC), Branch 61, Gumaca, Quezon, in Crim. Case No. 6636-G finding accused-appellant guilty of rape under Articles 266-A and 266-B of the Revised Penal Code and instead, we adjudged him guilty only of attempted rape. We, however, upheld the ruling of the court a quo with regard to Crim. Case No. 6637-G finding accused-appellant guilty of incestuous rape of a minor under Art. 266-B of the Revised Penal Code as amended by Republic Act No. 8353 and for this, we sentenced accused-appellant to suffer the ultimate penalty of death.

Issue: Whether or not the accused committed attempted rape or acts of lasciviousness.

Held: After a thorough review and evaluation of the records of this case, we find no sufficient basis to modify our earlier decision convicting accused-appellant of attempted rape in Crim. Case No. 6636-G.There is an attempt to commit rape when the offender commences its commission directly by overt acts but does not perform all the acts of execution which should produce the felony by reason of some cause or accident other than his own spontaneous desistance. Upon the other hand, Article 366 of the Revised Penal Code states: “(a)ny person who shall commit any act of lasciviousness upon the other person of either sex, under any of the circumstances mentioned in the preceding article, shall be punished by prision correccional.” As explained by an eminent author of criminal law, rape and acts of lasciviousness have the same nature. There is, however, a fundamental difference between the two. In rape, there is the intent to lie with a woman whereas this element is absent in acts of lasciviousness. In this case, the series of appalling events which took place on the night of 18 March 1998 inside the humble home of private complainant and of accused-appellant, establish beyond doubt that the latter intended to ravish his very own flesh and blood. As vividly narrated by private complainant before the trial court, accused-appellant, taking advantage of the cover of darkness and of the absence of his wife, removed her (private complainant’s) clothing and thereafter placed himself on top of her. Accused-appellant, who was similarly naked as private complainant, then proceeded to kiss the latter and he likewise touched her breasts until finally, he rendered private complainant unconscious by boxing her in the stomach. These dastardly acts of accused-appellant constitute “the first or some subsequent step in a direct movement towards the commission of the offense after the preparations are made.” Far from being mere obscenity or lewdness, they are indisputably overt acts executed in order to consummate the crime of rape against the person of private complainant.

SALVADOR D. FLOR VS. PEOPLE OF THE PHILIPPINES
G.R. No. 139987. March 31, 2005


Facts: Information for libel was filed before the RTC, Branch 20, Naga City, against the petitioner and Ramos who were then the managing editor and correspondent, respectively, of the Bicol Forum, a local weekly newspaper circulated in the Bicol Region. It states: On or about the 18th day up to the 24th day of August, 1986, in the Bicol Region comprised by the Provinces of Albay, Catanduanes, Sorsogon, Masbate, Camarines Sur, and Camarines Norte, and the Cities of Iriga and Naga, Philippines, and within the jurisdiction of this Honorable Court under R.A. No. 4363, and B.P. Blg. 129, the above-named accused who are the news correspondent and the managing editor, respectively, of the local weekly newspaper Bicol Forum, did then and there willfully, unlawfully and feloniously, without justifiable motive and with malicious intent of impeaching, discrediting and destroying the honor, integrity, good name and reputation of the complainant as Minister of the Presidential Commission on Government Reorganization and concurrently Governor of the Province of Camarines Sur, and to expose him to public hatred, ridicule and contempt, write, edit, publish and circulate an issue of the local weekly newspaper BICOL FORUM throughout the Bicol Region, with banner headline and front page news item read by the public throughout the Bicol Region “VILLAFUERTE’S DENIAL CONVINCES NO ONE”. The trial court found the petitioner guilty. The Court of Appeals likewise upheld the decision of the trial court.

Issue: Whether or not the questioned news item is libelous.

Held: No. Libel is defined as “a public and malicious imputation of a crime, or of a vice or defect, real or imaginary, or any act, omission, condition, status, or circumstance tending to cause the dishonor, discredit, or contempt of a natural person or juridical person, or to blacken the memory of one who is dead.” The law recognizes two kinds of privileged matters. First are those which are classified as absolutely privileged which enjoy immunity from libel suits regardless of the existence of malice in fact. The other kind of privileged matters are the qualifiedly or conditionally privileged communications which, unlike the first classification, may be susceptible to a finding of libel provided the prosecution establishes the presence of malice in fact. The exceptions provided for in Article 354 of the Revised Penal Code fall into this category. The interest of society and the maintenance of good government demand a full discussion of public affairs. Complete liberty to comment on the conduct of public men is a scalpel in the case of free speech. The sharp incision of its probe relieves the abscesses of officialdom. Men in public life may suffer under a hostile and an unjust accusation; the wound can be assuaged with the balm of a clear conscience. Rising superior to any official, or set of officials, to the Chief Executive, to the Legislature, to the Judiciary – to any or all the agencies of Government – public opinion should be the constant source of liberty and democracy.

NORMA A. ABDULLA versus PEOPLE OF THE PHILIPPINES
G.R. NO. 150129 April 6, 2005

Facts: Convicted by the Sandiganbayan in its Crim. Case No. 23261 of the crime of illegal use of public funds defined and penalized under Article 220 of the Revised Penal Code, or more commonly known as technical malversation, appellant Norma A. Abdulla is now before this Court on petition for review under Rule 45. Along with Nenita Aguil and Mahmud Darkis, appellant was charged under an Information which pertinently reads: That on or about November, 1989 or sometime prior or subsequent thereto, in Jolo, Sulu, Philippines and within the jurisdiction of this Honorable Court, the above-named accused: NORMA A. ABDULLA and NENITA P. AGUIL, both public officers, being then the President and cashier, respectively, of the Sulu State College, and as such by reason of their positions and duties are accountable for public funds under their administration, while in the performance of their functions, conspiring and confederating with MAHMUD I. DARKIS, also a public officer, being then the Administrative Officer V of the said school, did then and there willfully, unlawfully and feloniously, without lawful authority, apply for the payment of wages of casuals, the amount of FORTY THOUSAND PESOS (P40,000.00), Philippine Currency, which amount was appropriated for the payment of the salary differentials of secondary school teachers of the said school, to the damage and prejudice of public service .Appellant’s co-accused, Nenita Aguil and Mahmud Darkis, were both acquitted. Only appellant was found guilty and sentenced by the Sandiganbayan in its decision. Upon motion for reconsideration, the Sandiganbayan amended appellant’s sentence by deleting the temporary special disqualification imposed upon her. Still dissatisfied, appellant, now before this Court, persistently pleas innocence of the crime charged.
Issue: 1) Whether or not there was unlawful intent on the appellant’s part.

2) Whether or not the essential elements of the crime of technical malversation is present.

Held: The Court must have to part ways with the Sandiganbayan in its reliance on Section 5 (b) of Rule 131 as basis for its imputation of criminal intent upon appellant. The presumption of criminal intent will not automatically apply to all charges of technical malversation because disbursement of public funds for public use is per se not an unlawful act. Here, appellant cannot be said to have committed an unlawful act when she paid the obligation of the Sulu State College to its employees in the form of terminal leave benefits such employees were entitled to under existing civil service laws. There is no dispute that the money was spent for a public purpose – payment of the wages of laborers working on various projects in the municipality. It is pertinent to note the high priority which laborers’ wages enjoy as claims against the employers’ funds and resources. Settled is the rule that conviction should rest on the strength of evidence of the prosecution and not on the weakness of the defense. Absent this required quantum of evidence would mean exoneration for accused-appellant. The Sandiganbayan’s improper reliance on Sec. 5(b) of Rule 131 does not save the day for the prosecution’s deficiency in proving the existence of criminal intent nor could it ever tilt the scale from the constitutional presumption of innocence to that of guilt. In the absence of criminal intent, this Court has no basis to affirm appellant’s conviction. 2. The Court notes that there is no particular appropriation for salary differentials of secondary school teachers of the Sulu State College in RA 6688. The third element of the crime of technical malversation which requires that the public fund used should have been appropriated by law, is therefore absent. The authorization given by the Department of Budget and Management for the use of the forty thousand pesos (P40,000.00) allotment for payment of salary differentials of 34 secondary school teachers is not an ordinance or law contemplated in Article 220 of the Revised Penal Code. Appellant herein, who used the remainder of the forty thousand pesos (P40,000.00) released by the DBM for salary differentials, for the payment of the terminal leave benefits of other school teachers of the Sulu State College, cannot be held guilty of technical malversation in the absence, as here, of any provision in RA 6688 specifically appropriating said amount for payment of salary differentials only. In fine, the third and fourth elements of the crime defined in Article 220 of the Revised Penal Code are lacking in this case. Acquittal is thus in order.

ENRIQUE “TOTOY” RIVERA Y DE GUZMAN VS. PEOPLE OF THE PHILIPPINES
G.R. No. 138553. June 30, 2005

Facts: On May 6, 1993, in the Regional Trial Court at La Trinidad, Benguet an information for direct assault was filed against petitioner, allegedly committed, as follows: That on or about the 20th day of March, 1993, at Tomay, Shilan, Municipality of La Trinidad, Province of Benguet, Philippines, and within the jurisdiction of this Honorable Court, the above-named accused, did then and there willfully, unlawfully and feloniously attack, employ force and seriously resist one Lt. EDWARD M. LEYGO, knowing him to be a policeman, by then and there challenging the latter to a fistfight and thereafter grappling and hitting the said policeman on his face, thus injuring him in the process while the latter was actually engaged in the performance of his official duties. The trial court convicted petitioner of the crime of direct assault. The Court of Appeals affirmed the decision of the trial court.
Issue: Whether or not the Court of Appeals erred in affirming the judgment of conviction rendered by the trial court.

Held: Direct assault, a crime against public order, may be committed in two ways: first, by any person or persons who, without a public uprising, shall employ force or intimidation for the attainment of any of the purposes enumerated in defining the crimes of rebellion and sedition; and second, by any person or persons who, without a public uprising, shall attack, employ force, or seriously intimidate or resist any person in authority or any of his agents, while engaged in the performance of official duties, or on occasion of such performance. Unquestionably, petitioner’s case falls under the second mode, which is the more common form of assault and is aggravated when: (a) the assault is committed with a weapon; or (b) when the offender is a public officer or employee; or (c) when the offender lays hand upon a person in authority. In any event, this Court has said time and again that the assessment of the credibility of witnesses and their testimonies is best undertaken by the trial court, what with reality that it has the opportunity to observe the witnesses first-hand and to note their demeanor, conduct, and attitude while testifying. Its findings on such matters, absent, as here, of any arbitrariness or oversight of facts or circumstances of weight and substance, are final and conclusive upon this Court and will not to be disturbed on appeal.

FRUSTRATED HOMICIDE- ESSENTIAL REQUISITES FOR COMPLETE SELF-DEFENSE

CONRADO CASITAS VS. PEOPLE OF THE PHILIPPINES
G.R. No.152358, February 5, 2004

Facts: Early in the morning of August 25, 1994, Romeo C. Boringot was awakened by his wife Aida, the latter having heard somebody shouting invectives at her husband, viz: “You ought to be killed, you devil.” So Romeo stood up and peeped to see who was outside. When he did not see anybody, he proceeded towards the road.
Upon passing by a coconut tree, he was suddenly hacked at the back with bolo which was more that 1 foot long. He looked back at his assailant and he recognized him to be appellant Conrado whom he knew since the 1970’s and whose face he clearly saw as light from the moon illuminated the place. Appellant went on hacking him, hitting him in different parts of the body, including ears and the head. While hitting him, appellant was shouting invectives at him. Appellant also hit him with a guitar causing Romeo to sustain an injury on his forehead. All in all, he sustained 11 wounds.
Petitioner invoked self-defense. The trial court rejected petitioner’s plea of self-defense and convicted him of frustrated homicide.

Issue: Whether or not petitioner acted in self-defense.

Held: The petitioner was burdened to prove, with clear and convincing evidence, the confluence of the three essential requisites for complete self-defense: (a) unlawful aggression on the part of the victim; (b) reasonable means used by the person defending himself to repel or prevent the unlawful to repel or prevent the unlawful aggression; (c) lack of sufficient provocation on the part of the person defending himself. By invoking self-defense, the petitioner thereby submitted having deliberately caused the victim’s injuries. The burden of proof is shifted to him to prove with clear and convincing all the requisites of his affirmative defense. He must rely on the strength of his own evidence and not the weakness of that of the disbelieved after the petitioner admitted inflicting the mortal injuries on the victim. In this case, the petitioner failed to prove his affirmative defense.
The number, nature and location of the victim’s wounds belie the petitioner’s claim that the said wounds or the victim were inflicted as they duel with each other.
Witness for the petitioner testified that the wounds sustained by petitioner could not have been caused by bolo.
Petitioner never surrendered voluntarily to the police and admitted that he had injured the victim. This would have bolstered his claim that he hacked the victim to defend himself. The petitioner did not do so.

BIGAMY; ELEMENTS, EFFECT OF DECLARATION OF NULLITY OFSECOND MARRIAGE ON THE GROUND OF PSYCHOLOGICAL INCAPACITY; PENALTY

VERONICO TENEBRO VS. THE HONORABLE COURT OF APPEALS
G.R. No. 150758, February 18, 2004

Facts: Veronico Tenebro contracted marriage with Leticia Ancajas on April 10, 1990. The two were wed by a judge at Lapu-Lapu City. The two lived together continuously and without interruption until the later part of 1991, when Tenebro informed Ancajas that he had been previously married to a certain Hilda Villareyes on Nov. 10, 1986. Tenebro showed Ancajas a photocopy of a marriage contract between him and Villareyes. Invoking this previous marriage, petitioner thereafter left the conjugal dwelling which he shared with Ancajas, stating that he was going to cohabit with Villareyes.
On January 25, 1993, petitioner contracted yet another marriage, this one with a certain Nilda Villegas. When Ancajas learned of this third marriage, she verified from Villareyes whether the latter was indeed married to the petitioner. Villareyes confirmed in handwritten letter that indeed Tenebro was her husband.
Ancajas thereafter filed a complaint for bigamy against petitioner. During trial, Tenebro admitted having married to Villareyes and produced two children. However, he denied that he and Villareyes were validly married to each other, claiming that no marriage ceremony took place. He alleged that he signed a marriage contract merely to enable her to get the allotment from his office in connection with his work as a seaman. The trial court found him guilty of bigamy.

Issues: (1) Whether or not the petitioner is guilty of the crime of bigamy.
(2) What is the effect of declaration of nullity of the second marriage of the petitioner on the ground of psychological incapacity?

Held: (1) Yes, petitioner is guilty of the crime of bigamy. Under Article 349 of the Revised Penal Code, the elements of the crime of bigamy are: (1) that the offender has been legally married; (2) that the first marriage has not been legally dissolved or, in case his or her spouse is absent, the absent spouse could not yet be presumed dead according to the Civil Code; (3) that he contracts a second or subsequent marriage; and (4) that the second or subsequent marriage has all the essential requisites for validity. The prosecution sufficient evidence, both documentary and oral, proved the existence of the marriage between petitioner and Villareyes.
(2) A second or subsequent marriage contracted during subsistence of petitioner’s valid marriage to Villareyes, petitioner’s marriage to Ancajas would be null and void ab initio completely regardless of petitioner’s psychological capacity or incapacity. Since a marriage contracted during the subsistence of a valid marriage is automatically void, the nullity of this second marriage is not per se an argument for the avoidance of criminal liability for bigamy. Pertinently, Article 349 of the RPC criminalizes “any person who shall contract a second or subsequent marriage before the former marriage has been legally dissolved, or before the absent spouse has been declared presumptively dead by means of a judgment rendered in the proper proceedings”. A plain reading of the law, therefore, would indicate that the provision penalizes the mere act of contracting a second or subsequent marriage during the subsistence of a valid marriage.

KIDNAPPING FOR RANSOM

PEOPLE OF THE PHILIPPINES VS. ABDILA SILONGAN, ET. AL.
G.R. No. 137182, Apirl 24, 2003

Facts: On March 16, 1996, businessman Alexander Saldaña went to Sultan Kudarat with three other men to meet a certain Macapagal Silongan alias Commander Lambada. They arrived in the morning and were able to talk to Macapagal concerning the gold nuggets that purportedly being sold by the latter. The business transaction was postponed and continued in the afternoon due to the death of Macapagal’s relative and that he has to pick his brother in Cotabato City.
Then at around 8:30 PM, as they headed to the highway, Macapagal ordered the driver to stop. Suddenly, 15 armed men appeared. Alexander and his three companions were ordered to go out of the vehicle, they were tied up, and blindfolded. Macapagal and Teddy were also tied and blindfolded, but nothing more was done to them. Alexander identified all the abductors including the brothers of Macapagal.
The four victims were taken to the mountain hideout in Maguindanao. The kidnappers demanded P15, 000,000 from Alexander’s wife for his release, but the amount was reduced to twelve million. The victims were then transferred from one place to another. They made Alexander write a letter to his wife for his ransom. But on several occasions, a person named Mayangkang himself would write to Alexander’s wife. The two other victims managed to escape but Alexander was released after payment of ransom. The trial court convicted Macapagal and his companions of the crime of Kidnapping for Ransom with Serious Illegal Detention.

Issue: Whether it is necessary that there is actual payment of ransom in the crime of Kidnapping.

Held: No, it is necessary that there is actual payment of ransom in the crime of Kidnapping. For the crime to be committed, at least one overt act of demanding ransom must be made. It is not necessary that there be actual payment of ransom because what the law requires is merely the existence of the purpose of demanding ransom. In this case, the records are replete with instances when the kidnappers demanded ransom from the victim. At the mountain hideout where Alexander was first taken, he was made a letter to his wife asking her to pay ransom of twelve million. Also Mayangkang himself wrote more letters to his family threatened the family to kill Alexander if the ransom was not paid.

ESTAFA; TRUST RECEIPTS LAW

EDWARD ONG VS. COURT OF APPEALS
G.R. No. 119858, April 29, 2003

Facts: Petitioner Edward Ong, representing ARMAGRI International Corporation (ARMAGRI), executed two trust receipts acknowledging receipt from the Solid Bank Corp. of goods valued at P 2,532,500 and P 2, 050,000. In addition, he bounded himself to any increase or decrease of interest rate in case Central Bank floated rates and to pay any additional penalty until the trust receipts are fully paid.
When the trust receipts became due and demandable, ARMAGRI failed to pay or deliver the goods to the Bank despite several demand letters. The trial court convicted Ong of two counts of estafa for violation of the Trust Receipts Law.

Issue: Whether the appellant is guilty of two counts estafa for violation of the Trust Receipts Law.

Held: Yes, he is guilty for failure by the entrustee to account for the goods received in trust constitutes estafa. The Trust Receipts Law is violated whenever the entrustee fails to: (1) turn over the proceeds of the sale of goods, or (2) return the goods covered by the trust receipts if the good are not sold. The mere failure to account or return gives rise to the crime which is malum prohibitum. There is no requirement to prove intent to defraud.
The Bank released the goods to ARMAGRI upon execution of the trust receipts and as part of the loan transactions of ARMAGRI. The Bank had a right to demand from ARMAGRI payment or at least a return of the goods. ARMAGRI failed tom pay or return the goods despite repeated demands by the Bank.
It is well-settled doctrine long before the enactment of the Trust Receipts Law, that the failure to account, upon demand, for funds or property held in trust is evidence of conversion or misappropriation. Under the law, mere failure by the entrustee to account for the goods received in trust constitutes estafa. The Trust Receipts Law punishes dishonesty and abuse of confidence in the handling of money or goods to prejudice the public order. The mere failure to deliver proceeds of the sale or the goods if not sold constitutes a criminal offense that causes prejudice not only to the creditor, but also to the public interest. Evidently, the Bank suffered prejudice for neither money nor the goods were turned over the Bank.

PARRICIDE; ELEMENTS

PEOPLE OF THE PHILIPPINES VS. PO3 ARMANDO DALAG
G.R. No. 129895, April 30, 2003

Facts: Armando Dalag, a member of the Philippine National Police, was lawfully married to Leah Nolido Dalag. They had three children. Their marriage was far from idyllic. Their covertures were marred by violent quarrels, with Leah always at the losing end. Each time the couple had a quarrel, she sustained contusions, bruises and lumps on different parts of her body.
On August 15, 1996, Armando was drinking when Leah admonished him not to do so. Leah was then banged on the wall by Armando. Then he pushed and kicked Leah on the left side of her body which caused her to fall on the ground. Even as Leah was already lying prostrate, Armando continued to beat her up, punching her on the different parts of her body. Leah then fled to the house of Felia Horilla but Armando ran after her and herded her back to their house. Leah fell again to the ground and lost her consciousness. The trial court convicted Armando of parricide.

Issue: Whether the trial court correctly convicted the accused.

Held: Yes, the trial court correctly concluded that the injuries sustained by Leah that caused her death were the consequence of the appellant’s deliberate and intentional acts.
The crime of parricide is defined by Article 246 of the Revised Penal Code thus: Any person who shall kill his father, mother, or child, whether legitimate or illegitimate, or any of his ascendants, or descendants, or his spouse, shall be guilty of parricide and shall be punished by the penalty of reclusion perpetua to death.
The prosecution is mandated to prove the following essential elements: (1) a person is killed; (2) the deceased is killed by the accused; and (3) the deceased is the father, mother or child, whether legitimate or illegitimate, or a legitimate other ascendant or other descendant, or the legitimate spouse of the accused. The prescribed penalty for the crime is reclusion perpetua to death. The key element in parricide of a spouse, the best proof of the relationship between the accused and the deceased would be the marriage certificate.

STATUTORY RAPE; INFORMATION; TIME NOT AN ESSENTIAL ELEMENT

PEOPLE OF THE PHILIPPINES VS. BENJAMIN HILET
G.R. No. 146685-86, April 30, 2003

Facts: Sometime in 1998, ten-year old Richelle Cosada was told by appellant Benjamin Hilet, the common law husband of her mother not to go to school and watch the house. At about 10 AM, while her mother was out selling fish, Richelle saw appellant sharpening his bolo. Moments later, appellant dragged her towards the room and raped her. She kept the afternoon of March 17, 1999. Richelle finally confided to her mother. The latter asked their neighbor to report the incident to the police. The trial court convicted the appellant guilty of two counts of statutory rape.

Issue: Whether time is an essential element of statutory rape.

Held: No, time is not an essential element of statutory rape. An information is valid as long as it distinctly states the elements of the offense and the acts or omission constitutive thereof. The exact date of the commission of a crime is not an essential element of rape. Thus, in a prosecution of rape, the material fact or circumstance to be considered is the occurrence of rape, not the time of its commission.
It is not necessary to state the precise time when the offense was committed except when time is a material ingredient of the offense. In statutory rape, time is not an essential element. What is important is the information alleges that the victim is a minor under twelve years of age and the accused had carnal knowledge of her, even if no force or intimidation was used or she was not otherwise deprived of reason.

STATUTORY RAPE; INFORMATION; TIME IS NOT AN ESSENTIAL ELEMENT

PEOPLE OF THE PHILIPPINES VS. LOZADA

Facts: Reynaldo Diaz, a tricycle driver, went to a coffee shop to meet Ronnie Sanchez and this Sanchez disclosed to Diaz his plan to rob Rosita Sy. Thereafter Belleza Lozada arrived. They planned to wait Rosita Sy as she would normally leave her drugstore between 10:30 and 11 PM. They have also planned to kill Rosita Sy, upon realizing that Sy would be killed, Diaz excused himself on the pretext that he would get a weapon but he delayed himself and the plan was not implemented that night because of the delay. They have agreed to pursue it the next day. Diaz deliberately stayed away from their meeting place the next day. The following day, he learned over the radio that a lifeless body of Rosita was found in a remote area.

Issue: Whether or not all elements of a Robbery with Homicide are present to constitute a penalty of death.

Held: The SC ruled that all the elements were present. The taking with animo lurid or personal property belonging to another person by means of violence against or intimidation of person or using force upon thing constitutes robbery, and the complex crime of robbery with homicide arises when by reason or on the occasion of robbery, someone is killed. All these elements have satisfactorily been shown by the prosecution.

“BATTERED WOMAN SYNDROME”AS A VIABLE PLEA WITHIN THE CONCEPT OF SELF-DEFENSE

PEOPLE OF THE PHILIPPINES VS. MARIVIC GENOSA
G.R. No. 135981. September 29, 2000

Facts: On or about the 15th day of November 1995, at Barangay Bilwang, Municipality of Isabel, province of Leyte, accused Marivic Genosa, with intent to kill, with treachery and evident premeditation, did then and there willfully, unlawfully and feloniously attack, assault, hit and wound BEN GENOSA, her legitimate husband, with the use of a hard deadly weapon, which the accused had provided herself for the purpose, inflicting several wounds which caused his death.
The lower court found the accused, Marivic Genosa y Isidro, GUILTY beyond reasonable doubt of the crime of parricide and sentenced the accused with the penalty of DEATH.
On appeal, the appellant alleged that despite the evidence on record of repeated and severe beatings she had suffered at the hands of her husband, the lower court failed to appreciate her self-defense theory. She claimed that under the surrounding circumstances, her act of killing her husband was equivalent to self-defense.
Issue: Whether or not the “battered woman syndrome” as a viable plea within the concept of self-defense is applicable in this case.
Held: No. The court, however, is not discounting the possibility of self-defense arising from the battered woman syndrome. We now sum up our main points. First, each of the phases of the cycle of violence must be proven to have characterized at least two battering episodes between the appellant and her intimate partner. Second, the final acute battering episode preceding the killing of the batterer must have produced in the battered person’s mind an actual fear of an imminent harm, from her batterer and an honest belief that she needed to use force in order to save her life. Third, at the time of the killing, the batterer must have posed probable—not necessarily immediate and actual—grave harm to the accused, based on the history of violence perpetrated by the former against the latter. Taken altogether, these circumstances could satisfy the requisites of self-defense. Under the existing facts of the present case, however, not all of these elements were duly established.

RAPE; “TOUCHING” WHEN APPLIED TO RAPE CASES

PEOPLE OF TH PHILIPPINES vs. LEVI SUMARAGO
G.R. No. 140873-77, February 6, 2004

Facts: The spouses Vivencio and Teodora Brigole had four children. Two of them were girls and named- Norelyn and Doneza. Teodora left Vivencio and kept custody of their fpur children. Then, Teodora and Levi started living together as husband and wife.
Sometime in 1995, Norelyn, who was barely ten years old, was gathering firewood with the appellant Levi in his farm. While they were nearing a guava tree, the appellant suddenly boxed her on the stomach. Norelyn lost consciousness. She had her clothes when she woke up. She had a terrible headache and felt pain in her vagina. She also had a bruise in the middle portion of her right leg. The appellant warned not to tell her mother about it, otherwise he would kill her.
The sexual assaults were repeated several times so she decided to tell her sister and eventually her mother. The trial court found the accused guilty of the crime rape and sentenced him to death.

Issue: Whether or not the accused is guilty of the crime charged.

Held: Yes, the accused is guilty of the crime charged. For the accused to held guilty of consummated rape, the prosecution must prove beyond reasonable doubt that: 1) there had been carnal knowledge of the victim by the accused; 20 the accused achieves the act through force or intimidation upon the victim because the latter is deprived of reason or otherwise unconscious. Carnal knowledge of the victim by the accused may be proved either by direct evidence or by circumstantial evidence that rape had been committed and that the accused is the perpetrator thereof. A finding of guilt of the accused for rape may be based solely on the victim’s testimony if such testimony meets the test of credibility. Corroborating testimony frequently unavailable in rape cases is not indispensable to warrant a conviction of the accused for the crime. This Court has ruled that when a woman states that she has been raped, she says in effect all that would necessary to show rape did take place. However, the testimony of the victim must be scrutinized with extreme caution. The prosecution must stand or fall on its own merits.
The credibility of Norelyn and the probative weight of her testimony cannot be assailed simply because her admission that it took the appellant only short time to insert his penis into her vagina and to satiate his lust. The mere entry of his penis into the labia of the pudendum, even if only for a short while, is enough insofar as the consummation of the crime of rape is concerned, the brevity of time that the appellant inserted penis into the victim’s vagina is of no particular importance.

2006 Labor Law Case Digests

PHILIPPINE COMMERCIAL INTERNATIONAL BANK VS. ANASTACIO D. ABAD
G.R. No. 158045. February 28, 2005

Facts: Anastacio D. Abad was the senior Assistant Manager (Sales Head) of petitioner Philippine Commercial International Bank (PCI Bank now Equitable PCI Bank)], when he was dismissed from his work. Abad received a Memorandum from petitioner Bank concerning the irregular clearing of PNB-Naval Check of Sixtu Chu, the Bank’s valued client. Abad submitted his Answer, categorically denying that he instructed his subordinates to validate the out-of-town checks of Sixtu Chu presented for deposit or encashment as local clearing checks. During the actual investigation conducted by petitioner Bank, several transactions violative of the Bank’s Policies and Rules and Regulations were uncovered by the Fact-Finding Committee. Consequently, the Fact-Finding Officer of petitioner Bank issued another Memorandum to Abad asking the latter to explain the newly discovered irregularities. Not satisfied with the explanations of Abad, petitioner Bank served another Memorandum, terminating his employment effective immediately upon receipt of the same. Thus, Abad instituted a Complaint for Illegal Dismissal.

Issue: Whether or not awarding of separation pay equivalent to one-half (1/2) month’s pay for every year of service to respondent is gross, the same being contrary to law and jurisprudence.

Held: The award of separation pay is required for dismissals due to causes specified under Articles 283 and 284 of the Labor Code, as well as for illegal dismissals in which reinstatement is no longer feasible. On the other hand, an employee dismissed for any of the just causes enumerated under Article 282 of the Labor Code is not, as a rule, entitled to separation pay.
As an exception, allowing the grant of separation pay or some other financial assistance to an employee dismissed for just causes is based on equity. The Court has granted separation pay as a measure of social justice even when an employee has been validly dismissed, as long as the dismissal was not due to serious misconduct or reflective of personal integrity or morality.

BERNARDINO A. CAINGAT, vs. NATIONAL LABOR RELATIONS COMMISSION, STA. LUCIA REALTY & DEV’T., INC., R.S. MAINTENANCE & SERVICES, INC., and R.S. NIGHT HAWK SECURITY & INVESTIGATION AGENCY, INC
G.R. No. 154308. March 10, 2005

Facts: Petitioner Benardino A. Caingat was hired by respondent Sta. Lucia Realty and Development, Inc. (SLRDI) as the General Manager of SLRDI’s sister companies, R.S. Night Hawk Security and Investigation Agency, Inc., and R.S. Maintenance and Services Inc. both organized to service the malls and subdivisions owned by SLRDI. In connection with this, he was allowed to use 10% of the total payroll of respondent R.S. Maintenance to defray operating expenses. Later, the Finance Manager discovered that petitioner deposited company funds in the latter’s personal account and used the funds to pay his credit card purchases, utility bills, trips abroad and acquisition of a lot in Laguna. Thus, complainant received a memorandum stating that upon verification of financial records, it was found that the latter have misappropriated company funds in the sum of about P5, 000,000.00 and is hereby suspended from his duties as Manager of the stated companies. Without conducting any investigation, respondent R.S. Maintenance filed a complaint for sum of money and damages with prayer for writ of preliminary attachment. Petitioner in turn filed a complaint for illegal dismissal against the respondents.

Issue: Did respondents illegally dismiss petitioner?

Held: As firmly entrenched in our jurisprudence, loss of trust and confidence as a just cause for termination of employment is premised on the fact that an employee concerned holds a position where greater trust is placed by management and from whom greater fidelity to duty is correspondingly expected. This includes managerial personnel entrusted with confidence on delicate matters, such as the custody, handling, or care and protection of the employer’s property. The betrayal of this trust is the essence of the offense for which an employee is penalized. Management’s loss of trust and confidence on petitioner was well justified. Private respondents had every right to dismiss petitioner. Petitioner’s long period of disappearance from the scene and departure for abroad before making a claim of illegal dismissal does not contribute to its credibility.
Nonetheless, while dismissal may truly be justified by loss of confidence, the management failed to observe fully the procedural requirement of due process for the termination of petitioner’s employment. Two notices should be sent to the employee. The respondents only sent the first notice, gleaned from the memorandum. There was no second notice.

RETRENCHMENT; NOTICE REQUIREMENT;SEPARATION PAY

JAKA FOOD PROCESSING CORPORATION, vs. DARWIN PACOT, ROBERT PAROHINOG, DAVID BISNAR, MARLON DOMINGO, RHOEL LESCANO and JONATHAN CAGABCAB.
G.R. No. 151378. March 28, 2005

Facts: Respondents were earlier hired by petitioner JAKA Foods Processing Corporation until the latter terminated their employment because the corporation was “in dire financial straits”. It is not disputed, however, that the termination was effected without JAKA complying with the requirement under Article 283 of the Labor Code regarding the service of a written notice upon the employees and the Department of Labor and Employment at least one (1) month before the intended date of termination. Respondents filed complaints for illegal dismissal, underpayment of wages and nonpayment of service incentive leave and 13th month pay against JAKA. The Labor Arbiter rendered a decision declaring the termination illegal and ordering JAKA to reinstate respondents with full backwages, and separation pay if reinstatement is not possible. The Court of Appeals reversed said decision and ordered respondent JAKA to pay petitioners separation pay equivalent to one (1) month salary, the proportionate 13th month pay and, in addition, full backwages from the time their employment was terminated.

Issue: What are the legal implications of a situation where an employee is dismissed for cause but such dismissal was effected without the employer’s compliance with the notice requirement under the Labor Code?

Held: It was established that there was ground for respondents’ dismissal, i.e., retrenchment, which is one of the authorized causes enumerated under Article 283 of the Labor Code. Likewise, it is established that JAKA failed to comply with the notice requirement under the same Article. Considering the factual circumstances in the instant case, the Court deem it proper to fix the indemnity at P50, 000.00. The Court of Appeals have been in error when it ordered JAKA to pay respondents separation pay equivalent to one (1) month salary for every year of service. “In all cases of business closure or cessation of operation or undertaking of the employer, the affected employee is entitled to separation pay. This is consistent with the state policy of treating labor as a primary social economic force, affording full protection to its rights as well as its welfare. The exception is when the closure of business or cessation of operations is due to serious business losses or financial reverses; duly proved, in which case, the right of affected employees to separation pay is lost for obvious reasons.”

HACIENDA BINO/HORTENCIA STARKE, INC./HORTENCIA L. STARKE VS. CANDIDO
CUENCA ET AL.
G.R. No. 150478. April 15, 2005

Facts: Hacienda Bino is a 236-hectare sugar plantation located at Negros Occidental, and represented in this case by Hortencia L. Starke, owner and operator of the said hacienda. The 76 individual respondents were part of the workforce of Hacienda Bino consisting of 220 workers, performing various works, such as cultivation, planting of cane points, fertilization, watering, weeding, harvesting, and loading of harvested sugarcanes to cargo trucks. During the off-milling season, petitioner Starke issued an Order or Notice which stated, that all Hacienda employees who signed in favor of CARP are expressing their desire to get out of employment on their own volition. The respondents regarded such notice as a termination of their employment. As a consequence, they filed a complaint for illegal dismissal. The respondents as complainants alleged that they are regular and permanent workers of the hacienda and that they were dismissed without just and lawful cause.

Issue: Whether the respondents are regular or seasonal employees.

Held: The primary standard for determining regular employment is the reasonable connection between the particular activity performed by the employee in relation to the usual trade or business of the employer. There is no doubt that the respondents were performing work necessary and desirable in the usual trade or business of an employer. Hence, they can properly be classified as regular employees. For respondents to be excluded from those classified as regular employees, it is not enough that they perform work or services that are seasonal in nature. They must have been employed only for the duration of one season. While the records sufficiently show that the respondents’ work in the hacienda was seasonal in nature, there was, however, no proof that they were hired for the duration of one season only.

ALABANG COUNTRY CLUB INC., ET AL. VS. NATIONAL LABOR RELATIONS COMMISSION, ET AL.
G.R. No. 157611. August 9, 2005

Facts: Petitioner Alabang Country Club Inc. (ACCI), is a stock, non-profit corporation that operates and maintains a country club and various sports and recreational facilities for the exclusive use of its members. Sometime in 1993, Francisco Ferrer, then President of ACCI, requested its Internal Auditor, to conduct a study on the profitability of ACCI’s Food and Beverage Department (F & B Department). Consequently, report showed that from 1989 to 1993, F & B Department had been incurring substantial losses. Realizing that it was no longer profitable for ACCI to maintain its own F & B Department, the management decided to cease from operating the department and to open the same to a contractor, such as a concessionaire, which would be willing to operate its own food and beverage business within the club. Thus, ACCI sent its F & B Department employee’s individual letters informing them that their services were being terminated and that they would be paid separation pay. The Union in turn, with the authority of individual respondents, filed a complaint for illegal dismissal.

Issue: Whether or not the club’s right to terminate its employees for an authorized cause, particularly to secure its continued viability and existence is valid.

Held: When petitioner decided to cease operating its F & B Department and open the same to a concessionaire, it did not reduce the number of personnel assigned thereat. It terminated the employment of all personnel assigned at the department.
Petitioner’s failure to prove that the closure of its F & B Department was due to substantial losses notwithstanding, the Court finds that individual respondents were dismissed on the ground of closure or cessation of an undertaking not due to serious business losses or financial reverses, which is allowed under Article 283 of the Labor Code. The closure of operation of an establishment or undertaking not due to serious business losses or financial reverses includes both the complete cessation of operations and the cessation of only part of a company’s activities.

ELEMENTS OF ILLEGAL RECRUITMENT IN LARGE SCALE
PEOPLE OF THE PHILIPPINES VS. ROSE DUJUA, ET AL.
G.R. Nos. 149014-16. February 5, 2004

Facts: Ramon Dujua, his mother Rose, his aunt, Editha Singh, and his uncle, Guillermo Samson were charged with illegal recruitment in large scale. Only Ramon was arrested. Four testified against Ramon Dujua. All of them were promised work abroad upon payment of fees but they were not actually deployed. Ramon pleaded not guilty and denied the allegations that he was a recruiter.

Issue: Whether or not illegal recruitment in large scale was committed by Raon Dujua, et al.

Held: The essential elements of the crime of illegal recruitment in large scale are: 1) The accused engages in acts of recruitment and placement of workers defined under Article 13 (b) or in any prohibited activities under Article 34 of the Labor Code; 2) the accused has not complied with the guidelines issued by the Secretary of Labor and Employment particularly with respect to the securing of a license or an authority to recruit and deploy workers either locally or overseas; and 3) the accused commits the unlawful acts against three or more persons individually or as a group.
All three elements were established beyond reasonable doubt.
First, the testimonies of the complaining witnesses satisfactorily proved that Dujua promised them employment and assured them of placement overseas. All of them identified Dujua as the person who recruited them for employment abroad. As against the positive and categorical testimonies of the three complainants, Dujua’s mere denials cannot prevail. As long as the prosecution is able to establishthrough credible testimonial evidence that Dujua has engaged in illegal recruitment , a conviction for the offense can very well be justified.
Second, Dujua did not have any license or authority to recruit persons for overseas work, as shown by the Certification issued by the POEA. Neither did his employer, World Pack Travel and Tours, possess such license or authority.
Third, it has been alleged and proven that Dujua undertook the recruitment of more than three persons.

CBA; REFUSAL TO RENEGOTIATE ECONOMIC PROVISIONS OF THE CBA BY THE MANAGEMENT CONSTITUTES ULP

GENERAL MILLING CORPORATION VS. HON. COURT OF APPEALS
G.R. No. 146728. February 11, 2004

Facts: General Milling Corporation employed 190 workers. All the employees were members of a union which is a duly certified bargaining agent. The GMC and the union entered into a collective bargaining agreement which included the issue of representation that is effective for a term of three years which will expire on November 30, 1991. On November 29, 1991, a day before the expiration of the CBA, the union sent GMC a proposed CBA, with a request that a counter proposal be submitted within ten days. on October 1991, GMC received collective and individual letters from the union members stating that they have withdrawn from their union membership. On December 19, 1991, the union disclaimed any massive disaffiliation of its union members. On January 13, 1992, GMC dismissed an employee who is a union member. The union protected the employee and requested GMC to submit to the grievance procedure provided by the CBA, but GMC argued that there was no basis to negotiate with a union which is no longer existing. The union then filed a case with the Labor Arbiter but the latter ruled that there must first be a certification election to determine if the union still enjoys the support of the workers.

Issue: Whether or not GMC is guilty of unfair labor practice for violating its duty to bargain collectively and/or for interfering with the right of its employees to self-organization.

Held: GMC is guilty of unfair labor practice when it refused to negotiate with the union upon its request for the renegotiation of the economic terms of the CBA on November 29, 1991. the union’s proposal was submitted within the prescribed 3-year period from the date of effectivity of the CBA. It was obvious that GMC had no valid reason to refuse to negotiate in good faith with the union. The refusal to send counter proposal to the union and to bargain anew on the economic terms of the CBA is tantamount to an unfair labor practice under Article 248 of the Labor Code.
Under Article 252 of the Labor Code, both parties are required to perform their mutual obligation to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement. The union lived up to this obligation when it presented proposals for a new CBA to GMC within 3 years from the effectivity of the original CBA. But GMC failed in its duty under Article 252. What it did was to devise a flimsy excuse, by questioning the existence of the union and the status of its membership to prevent any negotiation. It bears stressing that the procedure in collective bargaining prescribed by the Code is mandatory because of the basic interest of the state in ensuring lasting industrial peace.
The Court of Appeals found that the letters between February to June, 1993 by 13 union members signifying their resignation from the union clearly indicated that GMC exerted pressure on the employees. We agree with the Court of Appeals’ conclusion that the ill-timed letters of resignation from the union members indicate that GMC interfered with the right of its employee to self-organization.

UNIONS; UNFAIR LABOR PRACTICE; STRIKES; ILLEGAL DISMISSAL

STAMFORD MARKETING CORP., ET AL. VS. JOSEPHINE JULIAN, ET AL.
G.R. No. 145496. February 24, 2004

Facts: On November 2, 1994, Zoilo de la Cruz, president of the Philippine Agricultural Commercial and Industrial Workers’ Union (PACIWU-TUCP), sent a letter to Rosario Apacible, treasurer and general manager of Stamford Marketing Corporation, GSP Manufacturing Corporation, Giorgio Antonio Marketing Corporation, Clementine Marketing Corporation and Ultimate Concept Phils., Inc. The letter informed her that the rank-and-file employees of the said companies had formed the Apacible Enterprises Employee’s Union-PACIWU-TUCP and demanded that it be recognized. After such notice, the following three cases arose:
In the First Case, Josephine Julian, president of PACIWU-TUCP, Jacinta Tejada and Jecina Burabod, a Board Member and a member of the said union, were dismissed. They filed a suit with the Labor Arbiter alleging that their employer had not paid them with their overtime pay, holiday pay/premiums, rest day premium, 13th month pay for the year 1994 salaries for services actually rendered, and that illegal deduction had been made without their consent from their salaries for a cash bond. Stamford alleged that the three were dismissed for not reporting for work when required to do so and for not giving notice or explanation when asked.
In the Second Case, PACIWU-TUCP filed, on behalf of 50 employees allegedly dismissed illegally for union membership by the petitioners, a case for unfair labor practice against GSP which denied such averments. GSP countered that the BLR did not list Apacible Enterprises Employee’s Union as a local chapter of PACIWU or TUCP. Thus, the strike that said union organized after the GSP refused to negotiate with them was illegal and that they refused to return to work when asked.
The Third Case was filed for claims of the 50 employees dismissed in the second case. Petitioner corporations, however, maintained that they have been paying complainants the wages/salaries mandated by law and that the complaint should be dismissed in view of the execution of quitclaims and waivers by the private respondents.
The Labor Arbiter ordered the three cases consolidated as the issues were interrelated and the respondent corporations were under one management.
First Case: The dismissal was illegal and Stamford was ordered to reinstate the complainants as well as pay the backwages and other benefits claimed. It was held that the reassignment and transfer of the complainants were forms of interference in the formation and membership of a union, an unfair labor practice. Stamford also failed to substantiate their claim that the said employees abandoned their employment. It also failed to prove the necessity of the cash deposit of P2,000 and failed to furnish written notice of dismissal to any complainants. Further, it failed to prove payments of the amounts being claimed.
Second Case: The strike was illegal and the officers of the union have lost their employment status, thus terminating their employment with GSP. GSP is however ordered to reinstate the complainants who were members of the union without backwages, save some employees specified. It was established that the union was not registered, and thus had staged an illegal strike. The officers of the union should be liable and dismissed, but the members should not, as they acted in good faith in the belief that their actions were within legal bounds.
Third Case: GSP was ordered to pay each complainant their claims, as computed by each individual. All other claims were dismissed for lack of merit. The Labor Arbiter found petitioners liable for salary differentials and other monetary claims for petitioners’ failure to sufficiently prove that it had paid the same to complainants as required by law. It was also ordered to return the cash deposits of the complainants, citing the same reasons as in the First Case.
On appeal, the NLRC affirmed the decision in the First and Third Cases, but set aside the judgment of the Second Case for further proceedings in view of the factual issues involved.
On May 14, 1996, a Petition to Declare the Strike Illegal was filed which was decided in favor of Stamford, upholding the dismissal of the union officers. The officers made no prior notice to strike, no vote was taken among union members, and the issue involved was non-strikable, a demand for salary increases
On elevation to the appellate court, it was ruled that the officers should be given separation pay, and that Jacina Burabod and the rest of the members should be reinstated without loss of seniority, plus backwages. It provided for the payment of the backwages despite the illegality of the strike because the dismissals were done prior to the strike. Such is considered an unfair labor practice as there was lack of due process and valid cause. Thus, the dismissed employees were still entitled to backwages and reinstatement, with exception to the union officers who may be given separation pay due to strained relations with their employers.

Issues: (1) Whether or not the respondents’ union officers and members were validly and legally dismisses from employment considering the illegality of the strike.
(2) Whether or not the respondents’ union officers were entitled to backwages, separation pay and reinstatement, respectively.

Held: (1) The termination of the union officers was legal under Article 264 of the Labor Code as the strike conducted was illegal and that illegal acts attended the mass action. Holding a strike is a right that could be availed of by a legitimate labor organization, which the union is not. Also, the mandatory requirements of following the procedures in conducting a strike under paragraph (c) and (f) of Article 263 were not followed by the union officers.
Article 264 provides for the consequences of an illegal strike, as well as the distinction between officers and members who participated therein. Knowingly participating in an illegal strike is a sufficient ground to terminate the employment of a union officer but mere participation is not sufficient ground for termination of union members. Thus, absent clear and substantial proof, rank-and-file union members may not be terminated. If he is terminated, he is entitled to reinstatement.
The Court affirmed the ruling of the CA on the illegal dismissal of the union members, as there was non-observance of due process requirements and union busting by management. It also affirmed that the charge of abandonment against Julian and Tejada were without credence. It reversed the ruling that the dismissal was unfair labor practice as there was nothing on record to show that Julian and Tejada were discouraged from joining any union. The dismissal of the union officers for participation in an illegal strike was upheld. However, union officers also must be given the required notices for terminating employment, and Article 264 of the Labor Code does not authorize immediate dismissal of union officers participating in an illegal strike. No such requisite notices were given to the union officers.
The Court upheld the appellate court’s ruling that the union members, for having participated in the strike in good faith and in believing that their actions were within the bound of the law meant only to secure economic benefits for themselves, were illegally dismissed hence entitled to reinstatement and backwages.
(2) The Supreme Court declared the dismissal of the union officers as valid hence, the award of separation pay was deleted. However, as sanction for non-compliance with the notice requirements for a lawful termination, backwages were awarded to the union officers computed from the time they were dismissed until the final entry of the judgment.

JURISDICTION OF THE LABOR ARBITERS AND THE NLRC

EVELYN TOLOSA VS. NATIONAL LABOR RELATIONS COMMISSION
G.R. No. 149578. April 10, 2003

Facts: Captain Virgilio Tolosa was master of the vessel M/V Donna owned by Quana-Kaiun, and was hired through its manning agent, Asia Bulk Transport Phils., Inc. (Asia Bulk). During channeling activities upon the vessel’s departure from Yokohama on November 6, 1992, Capt. Tolosa was drenched with rainwater. Subsequently, he contracted fever on November 11 which was later on accompanied by loose bowel movement for the succeeding 12 days. His condition was reported to Asia Bulk and the US Coast Guard Headquarters in Hawaii on November 15. However, before he could be evacuated, he died on November 18, 1992.
Evelyn Tolosa, the widow, filed a complaint before the POEA for damages against Pedro Garate, Chief Mate of the vessel, Mario Asis, Second Mate, Asia Bulk and Quana-Kaiun. The case was transferred to the NLRC. The Labor Arbiter ruled in favor of the widow, awarding actual damages plus legal interest, as well as moral and exemplary damages and attorney’s fees. On appeal to the NLRC, the decision of the Labor Arbiter was vacated and the complaint was dismissed for lack of jurisdiction over the subject matter of the action pursuant to the provisions of the Labor Code, as amended. Sustaining the NLRC, the CA ruled that the labor commission had no jurisdiction over the subject matter of the action filed by petitioner. Her cause did not arise from an employer-employee relation, but from a quasi-delict or tort. Under Article 217 (a)(4) of the Labor Code which allows an award of damages incident to an employer-employee relation, the damages awarded were not proper as she is not an employee, but merely the wife of an employee.

Issues: (1) Whether or not the Labor Arbiter and the NLRC had jurisdiction over petitioner’s action.
(2) Whether or not the monetary award granted by the Labor arbiter has already reached finality.

Held: (1) The Court affirmed that the claim for damages was filed not for claiming damages under the Labor Code but under the Civil Code. The Court was convinced that the allegations were based on a quasi-delict or tort. Also, she had claimed for actual damages for loss of earning capacity based on a life expectancy of 65 years, which is cognizable under the Civil Code and can be recovered in an action based on a quasi-delict. Though damages under a quasi-delict may be recoverable under the jurisdiction of labor arbiters and the NLRC, the relief must be based on an action that has reasonable casual connection with the Labor Code, labor statutes or CBA’s. It must be noted that a worker’s loss of earning capacity and backlisting are not to be equated with wages, overtime compensation or separation pay, and other labor benefits that are generally cognized in labor disputes. The loss of earning capacity is a relief or claim resulting from a quasi-delict or a similar cause within the realm of Civil Law. In the present case, Evelyn Tolosa’s claim for damages is not related to any other claim under Article 217, other labor statutes, or CBA’s. She cannot anchor her claim for damages to Article 161 of the Labor Code, which does not grant or specify a claim or relief. This provision is only a safety and health standard under Book IV of the same Code. The enforcement of this labor standard rests with the labor secretary. It is not the NLRC but the regular courts that have jurisdiction over action for damages, in which the employer-employee relation is merely incidental, and in which the cause of action proceeds from a different source of obligation such as a tort.
(2) On the finality of the award, the Court ruled that issues not raised in the court below cannot be raised for the first time on appeal. Thus, the issue being not brought to the attention of the Court of Appeals first, this cannot be considered by the Supreme Court. It would be tantamount to denial of the right to due process against the respondents to do so.

ABANDONMENT OF WORK; REQUISITES

SAMUEL SAMARCA VS. ARC-MEN INDUSTRIES, INC.
G.R. No. 146118. September 29, 2003

Facts: Samuel Samarca was employed as a laborer by Arc-Men Industries, Inc. On September 26, 1993, petitioner filed an application for an emergency leave of absence on account of his son’s hospitalization. Upon his return for work, petitioner was immediately served with a notice of respondent’s order suspending him for 30 days. Feeling aggrieved, petitioner filed a complaint for illegal suspension against respondent and its owner. During the pendency of the complaint, petitioner’s 30-day suspension ended. Consequently, respondent, in a letter, directed petitioner to report for work immediately. However, he refused, prompting respondent to send him a Notice to Terminate, directing him to submit, within 5 days, a written explanation why he should not be dismissed from the service for abandonment of work. For his part, petitioner submitted a letter-reply explaining that because of the pendency of his complaint for illegal suspension with the Labor arbiter, he could not report for work. Respondent, finding the petitioner’s written explanation insufficient, decided to terminate his services via a Notice of Termination. Consequently, petitioner filed an amended complaint for illegal dismissal.

Issue: Whether or not petitioner abandoned his work.

Held: To constitute abandonment, two elements must concur: (1) The failure to report for work or absence without valid or justifiable reason, and (2) a clear intention to sever the employer-employee relationship manifested by some overt acts. Mere absence is not sufficient. It is the employer who has the burden of proof to show a deliberate and justified refusal of the employee to resume his employment without any intention of returning.
The above twin essential requirements for abandonment to exist are not present in the case at bar. Petitioner’s absence is not without a justifiable reason. It must be recalled that upon receipt of the Notice to Terminate by reason of abandonment, petitioner sent respondent a letter explaining that he could not go back to work because of the pendency of his complaint for illegal suspension. And immediately after he was dismissed for abandonment of work, he lost no time to amend his complaint to illegal dismissal. This alone negates any intention on his part to forsake his work. It is a settled doctrine that the filing of a complaint for illegal dismissal is inconsistent with the charge of abandonment, for an employee who takes steps to protest his dismissal cannot by logic be said to have abandoned his work.
ABANDONMENT OF WORK; PROCEDURE FOR TERMINATING AN EMPLOYEE; ILLEGAL DISMISSAL

AGABON VS. NATIONAL LABOR RELATIONS COMMISSION
G.R. No. 158693. November 17, 2004

Facts: Private respondent Riviera Home Improvements, Inc. is engaged in the business of selling and installing ornamental and construction materials. It employed petitioner Virgilio Agabon and Jenny Agabon as gypsum board and cornice installers on January 2, 1992 until February 23, 1999 when they were dismissed for abandonment of work. Petitioners then filed a complaint for illegal dismissal. The Labor Arbiter rendered a decision declaring the dismissal illegal. On appeal, the NLRC reversed the decision because it found that the petitioners had abandoned their work and were not entitled to backwages and separation pay. The Court of Appeals in turn ruled that the dismissal of the petitioners was not illegal because they had abandoned their employment.

Issue: Whether or not petitioners were illegally dismissed.

Held: The dismissal should be upheld because it was established that the petitioners abandoned their jobs to work for another company. Private respondent, however, did not follow the notice requirements and instead argued that sending notices to the last known addresses would have been useless because they did not reside there anymore. Unfortunately for the private respondent, this is not a valid excuse because the law mandates the twin notice requirements to the employee’s last known address. Thus, it should be held liable for non-compliance with the procedural requirements of due process.
When the dismissal is for a just cause, the lack of statutory due process should not nullify the dismissal, or render it illegal, or ineffectual. However, the employer should indemnify the employee for the violation of his statutory rights.

2006 Legal Ethics Case Digest

MARIA ELENA MORENO VS. ATTY. ERNESTO ARANETA
A.C. No. 1109. April 27, 2005

Facts: Ernesto Araneta issued two checks to Elena Moreno for his indebtedness which amounts to P11, 000.00, the checks were dishonored. It was dishonored because the account against which is drawn is closed. Thereafter the case was forwarded to the IBP Commission on Bar Discipline pursuant to Rule 139-B of the Rules of Court. The Commission recommended the suspension from the practice of law for three (3) months. On 15 October 2002, IBP Director for Bar Discipline Victor C. Fernandez, transmitted the records of this case back to this Court pursuant to Rule 139-B, Sec. 12(b) of the Rules of Court. Thereafter, the Office of the Bar Confidant filed a Report regarding various aspects of the case. The Report further made mention of a Resolution from this Court indefinitely suspending the respondent for having been convicted by final judgment of estafa through falsification of a commercial document.

Issue: Whether or not Araneta should be disbarred due to the issuance of checks drawn against a closed account.

Held: The Court held that the act of a person in issuing a check knowing at the time of the issuance that he or she does not have sufficient funds in, or credit with, the drawee bank for the payment of the check in full upon its presentment, is a manifestation of moral turpitude. In Co v. Bernardino and Lao v. Medel, we held that for issuing worthless checks, a lawyer may be sanctioned with one year’s suspension from the practice of law, or a suspension of six months upon partial payment of the obligation. In the instant case, however, herein respondent has, apparently been found guilty by final judgment of estafa thru falsification of a commercial document, a crime involving moral turpitude, for which he has been indefinitely suspended. Considering that he had previously committed a similarly fraudulent act, and that this case likewise involves moral turpitude, we are constrained to impose a more severe penalty. In fact, we have long held that disbarment is the appropriate penalty for conviction by final judgment of a crime involving moral turpitude. As we said in In The Matter of Disbarment Proceedings v. Narciso N. Jaramillo, “the review of respondent's conviction no longer rests upon us. The judgment not only has become final but has been executed. No elaborate argument is necessary to hold the respondent unworthy of the privilege bestowed on him as a member of the bar. Suffice it to say that, by his conviction, the respondent has proved himself unfit to protect the administration of justice.”

Spouses OLBES VS. Atty. VICTOR V. DECIEMBRE
AC-5365. April 27, 2005

Facts: Atty. Victor V. Deciembre was given five blank checks by Spouses Olbes for security of a loan. After the loan was paid and a receipt issued, Atty. Deciembre filled up four of the five checks for P50, 000 with different maturity date. All checks were dishonored. Thus, Atty. Deciembre fled a case for estafa against the spouses Olbes. This prompted the spouses Olbes to file a disbarment case against Atty. Deciembre with the Office of the Bar Confidant of this Court. In the report, Commissioner Dulay recommended that respondent be suspended from the practice of law for two years for violating Rule 1.01 of the Code of Professional Responsibility.

Issue: Whether or not the suspension of Atty. Deciembre was in accord with his fault.

Held: Membership in the legal profession is a special privilege burdened with conditions. It is bestowed upon individuals who are not only learned in the law, but also known to possess good moral character. “A lawyer is an oath-bound servant of society whose conduct is clearly circumscribed by inflexible norms of law and ethics, and whose primary duty is the advancement of the quest for truth and justice, for which he has sworn to be a fearless crusader.” By taking the lawyer’s oath, an attorney becomes a guardian of truth and the rule of law, and an indispensable instrument in the fair and impartial administration of justice. Lawyers should act and comport themselves with honesty and integrity in a manner beyond reproach, in order to promote the public’s faith in the legal profession. It is also glaringly clear that the Code of Professional Responsibility was seriously transgressed by his malevolent act of filling up the blank checks by indicating amounts that had not been agreed upon at all and despite respondent’s full knowledge that the loan supposed to be secured by the checks had already been paid. His was a brazen act of falsification of a commercial document, resorted to for his material gain.
Deception and other fraudulent acts are not merely unacceptable practices that are disgraceful and dishonorable; they reveal a basic moral flaw. The standards of the legal profession are not satisfied by conduct that merely enables one to escape the penalties of criminal laws. Considering the depravity of the offense committed by respondent, we find the penalty recommended by the IBP of suspension for two years from the practice of law to be too mild. His propensity for employing deceit and misrepresentation is reprehensible. His misuse of the filled-up checks that led to the detention of one petitioner is loathsome. Thus, he is sentenced suspended indefinitely from the practice of law effective immediately.

NORTHWESTERN UNIVERSITY, INC., and BEN A. NICOLAS vs. Atty. MACARIO D. ARQUILLO
A.C. No. 6632. August 2, 2005

Facts: Atty. Macatrio D. Arquillo represented opposing parties in one a case before the before the National Labor Relations Commission, Regional Arbitration Branch in San Fernando, La Union. Herein, complainants accuse Atty. Arquillo of deceit, malpractice, gross misconduct and/or violation of his oath as attorney by representing conflicting interests. The case was filed with the IBP-Commission on Bar Discipline which found Atty. Arquillo guilty of the charge and recommended a penalty of suspension for 6 months. The governors of the IBP increased the penalty for 2 years.

Issue: Whether or not the acts of Arquillo merits his suspension from the practice of law.

Held: The Code of Professional Responsibility requires lawyers to observe candor, fairness and loyalty in all their dealings and transactions with their clients. Corollary to this duty, lawyers shall not represent conflicting interests, except with all the concerned clients’ written consent, given after a full disclosure of the facts. When a lawyer represents two or more opposing parties, there is a conflict of interests, the existence of which is determined by three separate tests: (1) when, in representation of one client, a lawyer is required to fight for an issue or claim, but is also duty-bound to oppose it for another client; (2) when the acceptance of the new retainer will require an attorney to perform an act that may injuriously affect the first client or, when called upon in a new relation, to use against the first one any knowledge acquired through their professional connection; or (3) when the acceptance of a new relation would prevent the full discharge of an attorney’s duty to give undivided fidelity and loyalty to the client or would invite suspicion of unfaithfulness or double dealing in the performance of that duty. An attorney cannot represent adverse interests. It is a hornbook doctrine grounded on public policy that a lawyer’s representation of both sides of an issue is highly improper. The proscription applies when the conflicting interests arise with respect to the same general matter, however slight such conflict may be. It applies even when the attorney acts from honest intentions or in good faith.
In accordance with previous rulings from this court Atty. Arquillo is suspended for 1 year from the practice of law.

RE: LETTER DATED 21 FEBRUARY 2005 OF ATTY. NOEL S. SORREDA.
A.M. No. 05-3-04-SC July 22, 2005

Facts: Atty. Noel S. Sorreda wrote a letter addressed to the Chief Justice over his frustrations of the outcome of his cases decided by the Supreme Court. The letter contained derogatory and malignant remarks which are highly insulting. The Court accorded Atty. Sorreda to explain, however, instead of appearing before the court, he wrote another letter with insulting remarks as the first one. The court was thus offended with his remarks.

Issue: Whether or not Atty. Sorreda can be held guilty of contempt due to the remarks he has made in his letters addressed to the court.

Held: Unfounded accusations or allegations or words tending to embarrass the court or to bring it into disrepute have no place in a pleading. Their employment serves no useful purpose. On the contrary, they constitute direct contempt of court or contempt in facie curiae and a violation of the lawyer’s oath and a transgression of the Code of Professional Responsibility. As officer of the court, Atty. Sorreda has the duty to uphold the dignity and authority of the courts and to promote confidence in the fair administration of justice.[24] No less must this be and with greater reasons in the case of the country’s highest court, the Supreme Court, as the last bulwark of justice and democracy
Atty. Sorreda must be reminded that his first duty is not to his client but to the administration of justice, to which his client’s success is wholly subordinate. His conduct ought to and must always be scrupulously observant of law and ethics. The use of intemperate language and unkind ascription can hardly be justified nor can it have a place in the dignity of judicial forum. Civility among members of the legal profession is a treasured tradition that must at no time be lost to it. Hence, Atty. Sorreda has transcended the permissible bounds of fair comment and constructive criticism to the detriment of the orderly administration of justice. Free expression, after all, must not be used as a vehicle to satisfy one’s irrational obsession to demean, ridicule, degrade and even destroy this Court and its magistrates. Thus, ATTY. NOEL S. SORREDA is found guilty both of contempt of court and violation of the Code of Professional Responsibility amounting to gross misconduct as an officer of the court and member of the Bar.

Heirs of Herman Rey, represented by ARACELI Vda. DE ROMERO vs. Atty. Venancio Reyes, Jr.
A.C. No. 6192 June 23, 2005

Facts: Atty. Venancio Reyes is counsel for Heirs of Herman Rey for which they are intervenors in a civil case involving multiple sale of a piece of land. There were three buyers however, and to settle the case, they had agreed to a Compromise Agreement. The Compromise Agreement, dated June 16, 1995, was signed in three stages, first by Elizabeth Reyes and her husband, then by complainants and their counsel, Atty. Renato Samonte Jr., and last, by Antonio Gonzales, Veronica Gonzales for and on behalf of V.R. Credit Enterprises, Inc. and by herein respondent. Later, the RTC which houses the records of the case was destroyed by fire, thus The complainants filed a motion for reconstitution of the records of the case, which was granted by the RTC of Bulacan. The documents attached to the motion were the basis for the reconstituted records. Because of the circumstances of signing of the Compromise Agreement, the copy submitted to the RTC bore only the signatures of Elizabeth Reyes, her husband, complainants, and that of their counsel, Atty. Renato Samonte. After a lapse of two (2) years from the date of the Compromise Agreement, V.R. Credit Enterprises, Inc. still has not complied with its obligation toward complainants. Hence, complainants filed a motion for issuance of writ of execution against V.R. Credit Enterprises, Inc. for such failure. Atty. Reyes filed a motion for the case was premature. Later he raised the issue that the Compromise Agreement was not valid since it was not signed by Veronica Gonzales. Hence, the RTC rued that the Compromise as unenforceable. Thus, herein, complainants filed this administrative case against Atty. Venancio Reyes Jr. charging him with willful and intentional falsehood, in violation of his oath as a member of the Philippine bar. IBP investigating commissioner found him guilty of violation of his oath.

Issue: Whether or not Atty. Venancio Reyes is administratively liable.

Held: Lawyers are indispensable instruments of justice and peace. Upon taking their professional oath, they become guardians of truth and the rule of law. Verily, when they appear before a tribunal, they act not merely as the parties’ representatives but, first and foremost, as officers of the court. Thus, their duty to protect their clients’ interests is secondary to their obligation to assist in the speedy and efficient administration of justice. In assailing the legality of the Compromise Agreement, he claims good faith. He maintains that he should not be faulted for raising an allegedly valid defense to protect his client’s interests. The records show, however, that his actions bear hallmarks of dishonesty and doublespeak. Atty. Reyes is one of negotiating panel in the compromise agreement. He impressed upon the parties and the trial judge that his clients were bound to the Compromise Agreement. Then, suddenly and conveniently, he repudiated it by falsely alleging that one of his clients had never signed it. True, lawyers are obliged to present every available remedy or defense to support the cause of their clients. However, their fidelity to their causes must always be made within the parameters of law and ethics, never at the expense of truth and justice. In Choa v. Chiongson this principle was explained thus: “While a lawyer owes absolute fidelity to the cause of his client, full devotion to his genuine interest, and warm zeal in the maintenance and defense of his rights, as well as the exertion of his utmost learning and ability, he must do so only within the bounds of the law” Thus, herein, Atty. Venancio Reyes, was ordered suspended for 1 year.

JESUS M. FERRER vs. ATTY. JOSE ALLAN M. TEBELIN
A.C. No. 6590. June 27, 2005

Facts: Ferrer obtained the services of Atty. Tebelin in a case against Global Link as a result of a vehicular accident through the falut of Global Link’s driver. Ferrer paid Atty. Tebelin P5, 000.00 as acceptance fee and gave him all pertinent documents. However, Ferrer filed an administrative case against Atty. Tebelin alleging that the said lawyer abandoned his case. However, Atty. Tebelin expressed his willingness to return the money and denied having abandoned the case. However, during the proceedings, herein Ferrer died. Atty. Tebelin was nowhere to be found in his given address.

Issue: Whether or not Atty. Tebellin may still be held liable despite the death of the complainant.

Held: The court held that Atty. Tebelin may still be held liable despite the death of the complainant. The death of a complainant in an administrative case notwithstanding, the case may still proceed and be resolved. As in the case of Tudtud v. Colifores, the court ruled that “The death of the complainant herein does not warrant the non-pursuance of the charges against respondent Judge. In administrative cases against public officers and employees, the complainants are, in a real sense, only witnesses. Hence, the unilateral decision of a complainant to withdraw from an administrative complaint, or even his death, as in the case at bar, does not prevent the Court from imposing sanctions upon the parties subject to its administrative supervision.” This Court also finds respondent, for ignoring the notices of hearing sent to him at his address which he himself furnished, or to notify the IBP-CBD his new address if indeed he had moved out of his given address. His actuation betrays his lack of courtesy, his irresponsibility as a lawyer. This Court faults respondent too for welting on his manifestation-undertaking to return the P5,000.00, not to mention the documents bearing on the case, to complainant or his heirs. Such is reflective of his reckless disregard of the duty imposed on him by Rule 22.02 of the Code of Professional Responsibility: Rule 22.02 – A lawyer who withdraws or is discharged shall, subject to a retaining lien, immediately turn over all papers and property to which the client is entitled, and shall cooperate with his successor in the orderly transfer of the matter, including all information necessary for the proper handling of the matter.
Thus, the court suspended Atty. Jose Allan M. Tebelin from the practice of law for Two (2) Months and is ordered to return to complainant’s heirs the amount of P5, 000.00, with legal interest.

JUDGES; UNDUE DELAY IN RENDERING JUDGMENT , A VIOLATION OF RULE 70 SECTION 11 OF THE RULES OF COURT
DORCAS PETALLAR VS. JUDGE JAUNILLO PULLOS
A.M. No. MTJ-03-1484. January 15, 2004

Facts: Complainant Dorcas Petallar averred that after the preliminary conference in a case for forcible entry, he, as plaintiff and the defendants were ordered to submit their respective position papers and evidence. Two months from the submission of their position papers, complainant personally went to the Court to verify the judgment had been rendered. He caused his lawyer to file a motion for rendition of judgment which was duly received by the court on August 6, 2001 but still no judgment was rendered on December 27, 2001 when the complaint was filed. Hence, complainant Petallar charged Judge Juanillo Pullos, former presiding judge of the MCTC of Surigao del Norte of violating Canon 1, Rule 1.02 & Canon 3, Rule 3.05 of the Code of Judicial Conduct as well as Rule 140, Section 4 & Rule 70, Section 10 & 11 of the Rules of the Court for undue delay in rendering a decision in a case for forcibly entry.

Issue: Whether or not respondent be held liable for undue delay in rendering judgment.

Held: Respondent is guilty of undue delay in rendering judgment. The records show that the parties had filed their respective position papers as early as February 2, 2000. thus, respondent had until March 4, 2000. Had there been circumstances which presented him from handling down his decision within the prescribed period, respondent should have at least requested from the Court for an extension within which to render judgment. Failure to resolve cases submitted for decisions within the period fixed by law constitutes serious violation of Article III, section 16 of the Constitution. Judges must perform their official duties with utmost diligence if public confidence in the judiciary is to be preserved. A judge cannot by himself prolong the period for deciding cases beyond that authorized by law. Without any order of extension granted by the court, failure to decide a case within the prescribed period constitutes gross inefficiency that merits administrative sanction.

COMPLAINTS FOR DISBARMENT; FORMAL INVESTIGATION
MERCEDES NAVA VS. ATTY. BENJAMIN SORONGON
AC No. 5442. January 26, 2004

Facts: Respondent Atty. Sorongon had been the counsel of complainant Mercedes Nava for years. The former informed her of his intention to withdraw as her counsel in two of her cases due to a stroke that paralyzed his right body but proposed to be retained in two other criminal cases with lesser paper works. He filed his withdrawal on December 4, 1996 and was granted by the court. Complainant alleged that while she continuously paid for the respondent’s services, the latter represented other clients with hostile interests and cases filed against her. Complainant cried that respondent assisted one Francisco Atas in filing a formal complaint for 11 counts of violation of B.P. 22 against her. She sent a letter to respondents expressing her disbelief and reminding him of his ethical and moral responsibility as a lawyer. Complainant prayed that an investigation be conducted regarding this unfortunate actuation and deplorable behavior as well as respondent’s double standard attitude.
Thereafter, the IBP Commission on Bar Discipline issued a resolution suspending respondent from the practice of law for one year considering his clear violation of the prohibition against representing conflicting interest.

Issue: Whether or not a formal investigation is mandatory in complaints for disbarment.

Held: In complaints for disbarment, a formal investigation is a mandatory requirement. The court may dispense with the normal referral to the Integrated Bar of the Philippines if the records are complete and the question raised is simple. Similarly, if no further, factual determination is necessary, the court may decide the case on the basis of the extensive pleading on record.
Complaints against lawyers for misconduct are normally addressed to the Court. If, at the outset, the Court finds a complaint to be clearly wanting in merit, it out rightly dismisses the case. If, however, the Court deems it necessary that further inquiry should be made, such as when the matter could not be resolved by merely evaluating the pleadings submitted, a referral is made to the IBP for a formal investigation of the case during which the parties are accorded an opportunity to be heard. An ex parte investigation may only be conducted when respondent fails to appear despite reasonable notice.

ABANDONMENT OF LAWFUL WIFE AND MAINTAINING ILLICIT RELATIONSHIP AS GROUND FOR DISBARMENT
JOVITA BUSTAMANTE-ALEJANDRO VS. ATTY. WARFREDO TOMAS ALEJANDRO and MARICRIS VILLARIN
AC No. 4256. February 13, 2004

Facts: Complainant submitted a photocopy of the marriage contract between her and respondent Atty. Alejandro in support of her charge of bigamy and concubinage against the latter and Villarin. She also submitted a photocopy of the birth certificate of a child of the respondent and also stated that they were married in May 1, 1990 in Isabela, Province.
The Supreme Court directed respondents to file their comment on the complaint within 10 days but they failed to comply. Copies of the resolution, complaint and its annexes were returned to both respondents unserved with notation “moved”, same as when served personally. Complainant was required anew to submit the correct, present address of respondents under pain of dismissal of her administrative complaint. She disclosed respondent’s address at 12403 Develop Drive Houston, Texas in a handwritten letter.
The Integrated Bar of the Philippines (IBP) recommended that both respondents be disbarred. The Supreme Court ordered Atty. Alejandro to be disbarred while the complaint against his co-respondent Atty. Villarin was returned to the IBP for further proceedings or it appears that a copy of the resolution requiring comment was never “deemed served” upon her as it was upon Atty. Alejandro.

Issue: Whether or not abandonment of lawful wife and maintaining an illicit relationship with another woman are grounds for disbarment.

Held: Sufficient evidence showed that respondent Atty. Alejandro, lawfully married to complainant, carried on an illicit relationship with co-respondent Atty. Villarin. Although the evidence was not sufficient to prove that he co0ntracted a subsequent bigamous marriage, that fact remains of his deplorable lack of that degree of morality required of him as member of the bar. A disbarment proceeding is warranted against a lawyer who abandons his lawful wife and maintains an illicit relationship with another woman who had borne him a child. We can do no less in this case where Atty. Alejandro even fled to another country to escape the consequences of his misconduct.
Therefore, Atty. Alejandro disbarred from the practice of law while the complaint against Atty. Villarin was referred back to the IBP.

VIOLATION OF THE CODE OF PROFESSIONAL RESPONSIBILITY; FAILURE OF COUNSEL TO FILE BRIEF
BIOMIE SARENAS-OCHAGABIA VS. ATTY. BALMES OCAMPOS
AM No. 4401. January 29, 2004

Facts: Complainant Biomie Sarenas-Ochagabia and her aunts engaged the services of respondent Atty. Balmes Ocampos in a civil case for recovery of possession and ownership of a parcel of land. An adverse decision was rendered against complainants. Atty. Ocampos filed a Notice of Appeal at their behest. The Court of Appeals gave them 45 days from notice to file their brief but Atty. Ocampos was granted a 90-day extension. The extended period lapsed without an appellant’s brief being filed, hence their appeal was dismissed. The dismissal was not challenged, but complainants filed a complaint contending that respondent violated his duty to inform them of his failure to file appellant’s brief and of the dismissal of the appeal.

Issue: Whether or not respondent has exercised due diligence for the protection of the client’s interests.

Held: A lawyer engaged to represent a client in a case bears the responsibility of protecting the latter’s interest with utmost diligence. By failing to file appellant’s brief, respondent was remiss in the discharge of such responsibility. He thus violated the Code of Professional which states:
Rule 12.03 A lawyer shall not, after attaining extensions of time to file pleadings, memoranda or briefs, let the period lapse without submitting the same or offering an explanation for his failure to do so.
Rule 18.03 A lawyer shall not neglect a legal matter entrusted to him, and his negligence in connection therewith shall render him liable.
That respondent accepted to represent complainants gratis et amore does not justify his failure to exercise due diligence in the performance of his duty. Every case deserves full attention, diligence, and competence regardless of its importance and whether he accepts it for a fee or free.
Until his final release from the professional relation with a client, a counsel of record is under obligation to protect the client’s interest. If a party has a counsel of record, a court does not recognize any other representation in behalf thereof unless in collaboration with such counsel of record or until a formal substitution of counsel is effected. Since respondent had not then withdrawn as counsel as he in fact filed a motion for extension of time to file brief, he was under obligation to discharge his professional responsibility.

2006 Political Law Case Digests

CONSTITUTIONAL LAW

PLAIN VIEW DOCTRINE

UNILAB, INC. vs. ERNESTO ISIP and/or SHALIMAR PHILIPPINES
G.R. No. 163858. June 28, 2005

Facts: UNILAB hired a private investigator to investigate a place purported to be manufacturing fake UNILAB products, especially Revicon multivitamins. The agent took some photographs where the clandestine manufacturing operation was taking place. UNILAB then sought the help of the NBI, which thereafter filed an application for the issuance of search warrant in the RTC of Manila. After finding probable cause, the court issued a search warrant directing the police to seize “finished or unfinished products of UNILAB, particularly REVICON multivitamins.” No fake Revicon was however found; instead, sealed boxes where seized, which, when opened contained 60 ml bottles of Disudrin and 200mg tablets of Inoflox, both were brands used by UNILAB. NBI prayed that some of the sized items be turned over to the custody of the Bureau of Food and Drugs (BFAD) for examination. The court granted the motion. The respondents then filed a motion to quash the search warrant or to suppress evidence, alleging that the seized items are considered to be fruit of a poisonous tree, and therefore inadmissible for any purpose in any proceeding, which the petitioners opposed alleging that the boxes of Disudrin and Inoflox were seized under the plain view doctrine. The court, however, granted the motion of the respondents.

Issue: Whether or not the seizure of the sealed boxes which, when opened, contained Disudrin syrup and Inoflox, were valid under the plain view doctrine.

Held: It is true that things not described in the warrant may be seized under the plain view doctrine. However, seized things not described in the warrant cannot be presumed as plain view. The State must adduce evidence to prove that the elements for the doctrine to apply are present, namely: (a) the executing law enforcement officer has a prior justification for an initial intrusion or otherwise properly in a position from which he can view a particular order; (b) the officer must discover incriminating evidence inadvertently; and (c) it must be immediately apparent to the police that the items they observe may be evidence of a crime, contraband, or otherwise subject to seizure
It was thus incumbent on the NBI and the petitioner to prove that the items were seized on plain view. It is not enough that the sealed boxes were in the plain view of the NBI agents. However, the NBI failed to present any of officers who were present when the warrant was enforced to prove that the the sealed boxes was discovered inadvertently, and that such boxes and their contents were incriminating and immediately apparent. It must be stressed that only the enforcing officers had personal knowledge whether the sealed boxes and their contents thereof were incriminating and that they were immediately apparent. There is even no showing that the NBI agents knew the contents of the sealed boxes before they were opened. In sum then, the petitioner and the NBI failed to prove that the plain view doctrine applies to the seized items.

FREEDOM OF EXPRESSION

PEOPLE’S JOURNAL et. al. vs. FRANCIS THOENEN
G.R. No. 143372 December 13, 2005

Facts: On 30 September 1990, a news item appeared in the People’s Journal claiming that a certain Francis Thoenen, a Swiss national who allegedly shoots wayward neighbors’ pets that he finds in his domain. It also claimed that BF Homes residents, in a letter through lawyer Atty. Efren Angara, requested for the deportation of Thoenen to prevent the recurrence of such incident in the future. Thoenen claimed that the article destroyed the respect and admiration he enjoyed in the community. He is seeking for damages.
The petitioners admitted publication of the news item, ostensibly out of a “social and moral duty to inform the public on matters of general interest, promote the public good and protect the moral public (sic) of the people,” and that the story was published in good faith and without malice.

Issue: Whether or not the news report fall under privileged communication and therefore protected by the constitutional provision on freedom of speech.

Held: The right of free speech is not absolute. Libel is not protected speech. In the instant case, even if we assume that the letter written by Atty. Angara is privileged communication, it lost its character when the matter was published in the newspaper and circulated among the general population, especially since the individual alleged to be defamed is neither a public official nor a public figure.
Moreover, the news item contained falsehoods on two levels. First, the BF Homes residents did not ask for the deportation of Thoenen, more so because the letter of the Atty. Anagara was a mere request for verification of Thoenen’s status as a foreign resident. The article is also untrue because the events she reported never happened. Worse, the main source of information, Atty. Efren Angara, apparently either does not exist, or is not a lawyer.
There is no constitutional value in false statements of fact. Neither the intentional lie nor the careless error materially advances society’s interest in ‘uninhibited, robust, and wide-open’ debate. Calculated falsehood falls into that class of utterances which “are no essential part of any exposition of ideas, and are of such slight social value as a step to truth that any benefit that may be derived from them is clearly outweighed by the social interest in order and morality… The knowingly false statement and the false statement made with reckless disregard of the truth, do not enjoy constitutional protection”

CUSTOMS SEARCH

TOMAS SALVADOR vs. THE PEOPLE OF THE PHILIPPINES
G.R. No. 146706. July 15, 2005

Facts: On June 3, 1994, a Special Mission Group from the PAF Special Operations Squadron conducted routine surveillance operations at the Manila Domestic Airport to check on reports of alleged drug trafficking and smuggling being facilitated by certain PAL personnel. They were ordered to keep close watch on the second airplane, an Airbus 300 parked inside the Domestic Airport terminal. At around 11:30 that same evening, three (3) persons had boarded the Airbus 300. The team did not move, but continued its surveillance. At 12:15 a.m. the team leader reported that the three (3) persons who earlier boarded the Airbus 300 had disembarked with their abdominal areas bulging and then boarded an airplane tow truck with its lights off. At the Lima Gate of the Domestic Airport, the team blocked and stopped the tow truck. The team leader identified himself and asked the four (4) persons on board to alight, and approached Aurelio Mandin whose uniform was partly open, showing a girdle. Then, a package wrapped in brown packaging tape fell. Suspecting that the package contained smuggled items, the leader yelled to his teammates, “Positive!” Thereupon, the rest of the team surrounded petitioner and his two co-accused who surrendered without a fight. The team searched their bodies and found that the three were wearing girdles beneath their uniforms, all containing packets wrapped in packaging tape. Mandin yielded five (5) packets, while petitioner and Santos had four (4) each. The team confiscated the packets and brought all the accused to the PAFSECOM Office.

Issue: Whether or not the seized items are admissible in evidence.

Held: Our jurisprudence provides for privileged areas where searches and seizures may lawfully be effected sans a search warrant. These recognized exceptions include: (1) search of moving vehicles; (2) search in plain view; (3) customs searches; (4) waiver or consented searches; (5) stop-and-frisk situations; and (6) search incidental to a lawful arrest.
Here, it should be noted that during the incident in question, the special mission of the PAF operatives was to conduct a surveillance operation to verify reports of drug trafficking and smuggling by certain PAL personnel in the vicinity of the airport. In other words, the search made by the PAF team on petitioner and his co-accused was in the nature of a customs search. As such, the team properly effected the search and seizure without a search warrant since it exercised police authority under the customs law. Law enforcers who are tasked to effect the enforcement of the customs and tariff laws are authorized to search and seize, without a search warrant, any article, cargo or other movable property when there is reasonable cause to suspect that the said items have been introduced into the Philippines in violation of the tariff and customs law. They may likewise conduct a warrantless search of any vehicle or person suspected of holding or conveying the said articles, as in the case at bar.

DOUBLE JEOPARDY

MARCELO LASOY and FELIX BANISA, vs. HON. MONINA A. ZENAROSA
G.R. No. 129472. April 12, 2005

Facts: On July 2, 1996 the accused were arrested fro possession and transport of marijuana leaves (in bricks). They were charged with the violation of the Dangerous Drugs Act of 1972, with the information containing the fact that they were in possession of and were transporting, selling or offering to sell 42.410 grams of dried marijuana fruiting tops. The accused was then arraigned, pleaded guilty and convicted. Subsequently they applied for probation. Thereafter the prosecutor’s office filed two motions to admit amended information (claiming that the marijuana recovered was 42.410 kilos, not grams) and to set aside the arraignment of the accused; the accused then moved to quash the motion raising the constitutional protection against double jeopardy.

Issue: Whether or not double jeopardy attaches.

Held: To invoke the defense of double jeopardy, the following requisites must be present: (1) a valid complaint or information; (2) the court has jurisdiction to try the case; (3) the accused has pleaded to the charge; and (4) he has been convicted or acquitted or the case against him dismissed or otherwise terminated without his express consent.
An information is valid as long as it distinctly states the statutory designation of the offense and the acts or omissions constitutive thereof. In other words, if the offense is stated in such a way that a person of ordinary intelligence may immediately know what is meant, and the court can decide the matter according to law, the inevitable conclusion is that the information is valid. The inescapable conclusion, then, is that the first information is valid inasmuch as it sufficiently alleges the manner by which the crime was committed. Verily the purpose of the law, that is, to apprise the accused of the nature of the charge against them, is reasonably complied with.
Moreover, an administrative order of the Supreme Court designated Regional Trial Courts to exclusively try and decide cases of … violation of the Dangerous Drugs Act of 1972, as amended, regardless of the quantity of the drugs involved. (PP. vs. Velasco)
Therefore, the requisites of double jeopardy being present, the defense attaches.

EMINENT DOMAIN

REPUBLIC, as represented by the NIA vs. CA and FRANCISCO DIAZ
G.R. No. 147245. March 31, 2005

Facts: Manuel Diaz owned approximately 172 hectares of property devoted to the planting of palay. The property was located in La Fuente, Sta. Rosa, Nueva Ecija, and allegedly yielded between 132 to 200 cavans of palay per hectare every year. After Manuel Diaz’s death, his son, Franciso Diaz, was appointed administrator of the property.
In 1972, the National Irrigation Administration bulldozed ten (10) hectares of the Property to build two irrigation canals. Although the canals when finished occupied only a portion of the 10 hectares, the entire area became prone to flooding two months out of every year because of the side-burrow method NIA used in the construction of the canals. NIA completed the canals without instituting expropriation proceedings or indemnifying the property’s owners. Respondent then sought compensation from NIA for the land affected by the canals, as well as for losses due to unrealized profits. In 1980, NIA belatedly offered to buy the portions of the Property occupied by the canals pursuant to NIA’s expansion program. The 1980 deeds of sale were never implemented. Respondent did not receive any consideration pursuant to these deeds. On 20 August 1993, respondent, as administrator of the Property, filed an action for damages and just compensation against NIA. NIA countered that respondent’s right to bring the action had prescribed in accordance with RA 3601, as amended by PD 552. NIA also argued that respondent’s failure to pursue the implementation of the 1980 deeds of sale amounted to laches.

Issue: Whether or not prescription or laches bars the respondent’s right to just compensation.

Held: The principle of laches finds no application in the present case. There is nothing inequitable in giving due course to respondent’s claim for compensation. Both equity and the law direct that a property owner should be compensated if his property is taken for public use.
Eminent domain is the inherent power of a sovereign state to appropriate private property to particular uses to promote public welfare. No one questions NIA’s authority to exercise the delegated power of eminent domain. However, the power of eminent domain is not limitless. NIA cannot exercise the power with wanton disregard for property rights. One basic limitation on the State’s power of eminent domain is the constitutional directive that, “private property shall not be taken for public use without just compensation.”
The thirteen-year interval between the execution of the 1980 deeds of sale and the 1993 filing of the complaint does not bar the claim for compensation. This Court reiterated the long-standing rule “that where private property is taken by the Government for public use without first acquiring title thereto either through expropriation or negotiated sale, the owner’s action to recover the land or the value thereof does not prescribe.”

BAIL
JUDGE NAPOLEON INOTURAN, vs. JUDGE MANUEL Q. LIMSIACO, JR
A.M. No. MTJ-01-1362. May 6, 2005

Facts: Mario Balucero was charged before the RTC of Makati Branch 133, the presiding judge of which is Napoleon Inoturan, with the violation of BP 22. Balucero, however, failed to appear during arraignment despite notice. Inoturan then issued a bench warrant against him. Balucero was subsequently arrested in Bacolod City, but was released upon posting of a property bail before the MCTC of Pulupundan, Negros Occidental, which order was signed by Judge Manuel Limsiaco, Jr. The arraignment of Balucero was subsequently set, but he failed to appear notwithstanding his receipt of notices. Inoturan then ordered that the property bond be cancelled and forfeited. He then ordered Ignacio Denila, the Clerk of Court of the MCTC to forward the property bond. Unable to comply with Inoturan’s order, Denila was cited in contempt and was detained. Denila was ordered released by Limisiaco. Upon investigation, the Office of Court Administrator found that Judge Limsiaco ordered the release of the some other accused although they did not post bail. Limsiaco was administratively charged for gross ignorance of the law and negligence in the performance of his duties.

Issue: What are the requisites before an order for release can be given in cases of bail?

Held: Bail is the security given for the release of a person in custody of the law, furnished by him or a bondsman, conditioned upon his appearance before any court as required under the conditions herein after specified. It is thus clear that without bail, an accused under detention cannot be released. As found by the investigating Judges, accused Balucero did not post bail but still respondent Judge Limsiaco ordered his release.
A person applying for bail should be in the custody of the law or otherwise deprived of liberty. Indeed, bail is unavailing with respect to an accused who has not voluntarily surrendered or has yet to be placed in legal custody. In this case, Limsiaco issued the Order for the release of accused Balucero on November 21, 1996 or fifteen (15) days before December 6, 1996, the day he was actually arrested.
Moreover, Limsiaco acted without authority in approving Balucero’s alleged application for bail. Section 17, Rule 114 of the Revised Rules of Criminal Procedure provides that “if the accused is arrested in a province, city of municipality, other than where the case is pending, bail may be filed with any Regional Trial Court of said place, or if no judge thereof is available, with any metropolitan trial judge, municipal trial judge, or municipal circuit trial judge therein.” Here, respondent should not have approved Balucero’s application for bail. It is only one of the 14 Branches of the RTC in Bacolod City which has the authority to act thereon.

POLICE POWER

LUCENA GRAND CENTRAL TERMINAL, INC., petitioner, vs. JAC LINER, INC., respondent.
G.R. No. 148339. February 23, 2005

Facts: The City of Lucena enacted an ordinance which provides, inter alia, that: all buses, mini-buses and out-of-town passenger jeepneys shall be prohibited from entering the city and are hereby directed to proceed to the common terminal, for picking-up and/or dropping of their passengers; and (b) all temporary terminals in the City of Lucena are hereby declared inoperable starting from the effectivity of this ordinance. It also provides that all jeepneys, mini-buses, and buses shall use the grand central terminal of the city. JAC Liner, Inc. assailed the city ordinance as unconstitutional on the ground that, inter alia, the same constituted an invalid exercise of police power, an undue taking of private property, and a violation of the constitutional prohibition against monopolies.

Issue: Whether or not the ordinance satisfies the requisite of valid exercise of police power, i.e. lawful subject and lawful means.

Held: The local government may be considered as having properly exercised its police power only if the following requisites are met: (1) the interests of the public generally, as distinguished from those of a particular class, require the interference of the State, and (2) the means employed are reasonably necessary for the attainment of the object sought to be accomplished and not unduly oppressive upon individuals. Otherwise stated, there must be a concurrence of a lawful subject and lawful method
The questioned ordinances having been enacted with the objective of relieving traffic congestion in the City of Lucena, they involve public interest warranting the interference of the State. The first requisite for the proper exercise of police power is thus present. This leaves for determination the issue of whether the means employed by the Lucena Sangguniang Panlungsod to attain its professed objective were reasonably necessary and not unduly oppressive upon individuals. The ordinances assailed herein are characterized by overbreadth. They go beyond what is reasonably necessary to solve the traffic problem. Additionally, since the compulsory use of the terminal operated by petitioner would subject the users thereof to fees, rentals and charges, such measure is unduly oppressive, as correctly found by the appellate court. What should have been done was to determine exactly where the problem lies and then to stop it right there.
The true role of Constitutional Law is to effect an equilibrium between authority and liberty so that rights are exercised within the framework of the law and the laws are enacted with due deference to rights. It is its reasonableness, not its effectiveness, which bears upon its constitutionality. If the constitutionality of a law were measured by its effectiveness, then even tyrannical laws may be justified whenever they happen to be effective.

ADMINISTRATIVE LAW

COMMISSION OF SIMPLE NEGLIGENCE, VIOLATION OF REVENUE REGULATION NO. 4-93


BUREAU OF INTERNAL REVENUE, et al vs. LILIA B. ORGANO
G.R. No. 14995, February 26, 2004


Facts: Respondent Lilia B. Organo is a revenue collection officer of the BIR, Revenue Region 7, Quezon City. On May 13, 1997, then BIR Commissioner Liwayway Vinsons-Chato filed with the BIR a formal administrative charge against petitioner for grave misconduct and dishonesty.
Respondent filed a verified answer, in which she admitted that she had no specific authority allowing her to receive withholding tax returns and check payments. She alleged in her counter-affidavit that her duties as collection officer consisted merely of collecting delinquent accounts and performing other tasks that her supervisor would assign to her from time to time; and that her acceptance of the withholding tax returns and check payments for transmittal to BIR-authorized banks was a mere assistance extended to taxpayers, without any consideration.
The administrative case against respondent was transferred to the Office of Ombudsman, which adopted the “proceedings, evidence/exhibits presented at the administrative proceedings before the BIR.” In due course, it rendered its decision finding respondent guilty of grave misconduct.

Issue: Whether or not respondent is liable for grave misconduct.

Held: The Court held that by accommodating and accepting withholding tax returns and checks payments respondent disregarded as established BIR rule. Revenue Regulation No. 4-93 requires payments through the banks precisely to avoid, whenever possible, BIR employee’s direct receipt of tax payments. Yet, respondent was not deterred from making accommodations that circumvented this provision.
To compound matters, her acts were essential ingredients paving the way for the commission of fraud against, and consequent damage to, the government. Her claimed ignorance thereof cannot erase her liability. Obviously, she disregarded the established practice and rules. In the face of her silence, the fact that the checks ended up in an unauthorized BIR account eloquently speaks, at the very least, of her gross negligence in taking care of collections that should not have passed through her hands in the first place.
Because of her complicity in the transgression of the cited BIR regulation as well as her gross negligence, respondent is administratively liable for simple misconduct and is suspended for six months.

POWER OF COA

RODOLFO S. DE JESUS, ET AL. vs. COMMISSION ON AUDIT
G.R. No. 149154, June 10, 2003

Facts: The Board of Directors (BOD) of the Catbalogan Water District granted to themselves RATA, rice allowance, productivity incentive, anniversary, and year-end bonus and cash gifts, as authorized by Resolution No. 313 of the Local Water Utilities Administration (LWUA). The COA disallowed and ordered the refund of these allowances as they are not allowed by P.D. No. 198, the Provincial Water Utilities Act of 1973.

Issue: Whether COA is vested with authority to disallow release of allowance not authorized by law even if authorized by the LWUA.

Held: Art. IX, Sec. 2 D of the Constitution mandates the COA to audit all the government agencies, including government-owned and controlled corporations (GOCC) with original charters. The COA is vested with authority to disallow illegal or irregular disbursements of government funds. A Water District is a GOCC with a special charter since it is created pursuant to special law, PD 198. The COA can disallow allowances not authorized by law, even if authorized by the LWUA.
Considering that the disallowed allowances were received in good faith, without knowledge that payment had no legal basis, the allowances need not to be refunded.

QUASI-LEGISLATIVE & QUASI-JUDICIAL POWERS; RULE ON EXHAUSTION OF ADMINISTRATIVE REMEDIES; DOCTRINE OF PRIMARY JURISDICTION;WHEN APPLICABLE


SMART COMMUNICATIONS, INC. ET AL. V. NATIONAL TELECOMMUNICATIONS COMMISSION (NTC)
G.R. 151908, August 12, 2003

Facts: The NTC issued Billing Circular 13-6-2000 which promulgated rules and regulations on the billing of telecommunications services. Petitioners filed with the RTC a petition to declare the circular as unconstitutional. A motion to dismiss was filed by the NTC on the ground of petitioner’s to exhaust administrative remedies. The RTC denied the motion to dismiss but on certiorari, the CA reversed RTC.

Held: 1. Administrative bodies had (a) quasi-legislative or rule-making powers and (b) quasi-judicial or administrative adjudicatory powers. Quasi-legislative or rule-making power is the power to make rules and regulations which results in delegated legislation that is within the confines of the granting statute and the doctrine of non-delegability and separability of powers. To be valid, such rules and regulations must conform to, and be consistent with, the provisions of enabling statute.
Quasi-judicial or administrative adjudicatory power is the power to hear and determine questions of fact to which the legislative policy is to apply and to decide in accordance with the standards laid down by law itself in enforcing and administering the same law. In carrying out their quasi-judicial functions, the administrative officers or bodies are required to investigate facts or ascertain the existence of facts, hold hearings, weigh evidence, and draw conclusions from them for their official action and exercise of discretion in a judicial.
2. The determination of whether a specific rule or set of rules issued by an administrative body contravenes the law or the constitution is within the judicial power as defined by the Constitution which is “ the duty of the Courts of justice to settle actual controversies involving rights which are legally demandable and enforceable, and to determine whether or not there haw been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government.” The NTC circular was issued pursuant to its quasi-legislative or rule-making power. Hence, the action must be filed directly with the regular courts without requiring exhaustion of administrative remedies.
3. Where the act of administrative agency was performed pursuant to its quasi-judicial function, exhaustion of administrative remedy is required, before going to court.
4. The doctrine of primary jurisdiction applies only where the administrative agency exercises its quasi-judicial or adjudicatory function. Thus, in cases involving specialized disputes, the same must be referred to an administrative agency of special competence pursuant to the doctrine of primary jurisdiction. This doctrine of primary jurisdiction applies where the claim requires the resolution of issues which, under a regulatory scheme, has been placed within the special competence of an administrative body. In such case, the judicial process is suspended pending referral of such issues to the administrative body for its view.


REPUBLIC ACT NO. 6770 ( THE OMBUDSMAN ACT OF 1998) PENALTIES WHICH ARE FINAL AND UNAPPEALABLE;

RENATO HERRERA v. ELMER BOHOL
G.R. No. 155320. February 5,2004

Facts: Renato F. Herrera, former Director III at DAR Central Office, approved the request for shift of item number of Plaridel Elmer J. Bohol, a Senior Agrarian Reform officer at the BARIE. The shift or item number from 577-1 of Fund 108 to 562-3 of Fund 101 resulted to Bohol ontaining his salary under Fund 101. When Bohol was informed that he could not draw his salary under such item anymore because his item was recalled and was given to another person, he charged Herrera before the Office of the Ombudsman, with Grave Misconduct and/or Inefficiency and Incompetence. The Ombudsman found Renato Herrera guilty of simple misconduct and was suspended for one month without pay. Such decision was contested by Herrera and he even appealed to the CA on the ground that he did not fail to take measures to correct respondent’s recall; but, such petition was just denied by the CA.A petition for review was raised to the SC stressing that one month suspension, as stated in the Ombudsman Act of 1998, is appealable considering that it is not among those enumerated as final and unappealable.

Issue: Whether or not the provision in R.A. No. 6770, otherwise known as the Ombudsman Act of 1998, providing suspension of not more than one month’s salary is final and unappealable.

Held: Sec. 27 of RA No. 6770 states that: “any order, directive or decision imposing the penalty of public censure, reprimand, suspension of not more than one month’s salary shall be final and unappealable…”
Salary suspension is an effect of work suspension following the “no work, no pay” principle. It will be the employee concerned who will be suspended and such suspension without pay,being final, and unappealable, is clearly expressed the law. RA No. 6770, therefore, is a legal and clear basis of denying the petitioner’s appeal.

COMMAND RESPONSIBILITY;HEAD OF A DEPARTMENT OR A SUPERIOR OFFICER SHALL NOT BE CIVILLY LIABLE FOR THE WRONGFUL ACTS.OMISSION OF DUTY, NEGLIGENCE FOR MISFEASANCE OF HIS SUBORDINATE.UNLESS HE HAS ACTUALLY AUTHORIZE BY WRITTEN ORDER OF THE SPECIFIC ACT OR MISCONDUCT COMPLAINED OF

ALBERTO V. REYES, ET AL. v. RURAL BANK OF SAN MIGUEL (BULACAN), INC.ET. AL,.
G.R. No. 154499, February 27, 2004

Facts: In a letter dated May 19,1999, addressed to then BSP Governor Singson, RBSMI charge the petitioner with violation of RA No. 6713 ( code of Conduct and Ethical Standards for Public Officials and Employees). The Monetary Board (MB) of the BSP created an Ad Hoc Committee to investigate the matter.
The ensuing investigation disclosed that sometime in September 1996, RBSMI, which had a history of major violations/exceptions dating back to 1995, underwent periodic examination by the BSP. The examination team headed by Principio noted serious 20 exceptions/violations and deficiencies of RBSMI.
Through Resolution No. 96, the MB required RBSMI to submit within 15 days a written explanation with respect to the findings of the examiner. It also directed the Department of Rural Banks DRB), to verify, monitor and report to the Deputy Governor, Supervision and Examination Sector (SES) on the findings noted, until the same shall have been corrected.
Meanwhile on June 13,1997, the MB approved Resolution No. 724 ordering RBSMI to correct the major exceptions noted within 30 days from receipt of the advice, and to remit to the BSP the amount of P2,538,483.00 as fines and penalties for incurring deficiencies in reserves against deposit liabilities.
More than a year after, however, the RBSMI asked for a reconsideration of MB Resolution No. 724 insofar as the imposition of fine amounting to P P2,538,483.00.On January 21, 1999, the MB adopted Resolution No. 71, authorizing the conditional reversal of sixty of the dispute on the findings on reserve deficiency. Subsequently, on April 7, 1999, the MB approved the interim reversal of the entire amount of the penalty “pending the outcome of the study on the legal and factual basis for the imposition of the penalty.”
The above incidents, particularly the alleged “brokering” by Reyes and the petitioners’ “unsupported” recommendation to impose a penalty of P2,538,483.00 for legal reserve deficiency, prompted the respondent to file the letter-complaint charging the petitioners with “unprofessionalism.”
In the Decision if March 14,2003, this Court found Deputy Governor Reyes and Director Domo-ong liable for violation of the “standards of professionalism” prescribed by RA 6713in that they used the distressed financial condition of respondent RBSMI as the subject of a case study in one of the BSP seminars and did the “brokering” of the sale of RBSMI. The Court modified the decision of the CA by reducing the penalty imposed from the a fine equivalent to six months’salary to a fine of 2 months salary for Reyes and one month salary for Domo-ong.
The court exonerated petitioner Proncipio of the Administrative charges. The exoneration is subject to RBSMI’s Motion for Partial Reconsideration.

Issue: Whether or not the Superior officer shall not be civilly liable for the wrongful acts, omissions of duty, negligence or misfeasance of his subordinate officer.

Held: The immunity of public officers from liability for nonfeasance, negligence or omissions of duty of their official subordinate and even for the latter’s misfeasance or positive wrong rests, according to MECHEM, “upon obvious considerations of public policy, the necessities of the public service and the perplexities and embarrassments of a contrary doctrine.” These official subordinates are themselves public officers though of an inferior grade, and therefore directly liable in the cases in which any public officer is liable, for their own misdeeds or defaults.
Under the Admin Code of 1987, which provides that head of a department or a superior officer shall not be civilly liable for the wrongful acts, omissions of duty, negligence, misfeasance of his subordinates, unless he has actually authorized by written order the specific act or misconduct complained of.

ELECTION LAW

RONALD ALLAN POE a.k.a. FERNANDO POE, JR. VS. GLORIA MACAPAGAL-ARROYO
P.E.T. CASE No. 002. March 29, 2005

Facts: In the 2004 election, Gloria Macapagal Arroyo (GMA) was proclaimed the duly elected President of the Philippines. The second-placer in the elections, Fernando Poe, Jr. (FPJ), filed an election protest before the Electoral Tribunal. When the Protestant died in the course of his medical treatment, his widow, Mrs. Jesusa Sonora Poe a.k.a. Susan Roces filed a motion to intervene as a substitute for deceased protestant FPJ. She claims that there is an urgent need for her to continue and substitute for her late husband to ascertain the true and genuine will of the electorate in the interest of the Filipino people. The Protestee, GMA asserts that the widow of a deceased candidate is not the proper party to replace the deceased protestant since a public office is personal and not a property that passes on to the heirs. Protestee also contends that under the Rules of the Presidential Electoral Tribunal, only the registered candidates who obtained the 2nd and 3rd highest votes for the presidency may contest the election of the president.

Issue: May the widow substitute/intervene for the protestant who died during the pendency of the latter’s protest case?

Held: Only the registered candidate for President or for Vice-President of the Philippines who received the second or third highest number of votes may contest the election of the President or the Vice-President, as the case may be, by filing a verified petition with the Clerk of the Presidential Electoral Tribunal within thirty (30) days after the proclamation of the winner.
An election protest is not purely personal and exclusive to the protestant or to the protestee, hence, substitution and intervention is allowed but only by a real party in interest. Note that Mrs. FPJ herself denies any claim to the office of President but rather stresses that it is with the “paramount public interest” in mind that she desires “to pursue the process” commenced by her late husband. However, nobility of intention is not the point of reference in determining whether a person may intervene in an election protest. In such intervention, the interest which allows a person to intervene in a suit must be in the matter of litigation and of such direct and immediate character that the intervenor will either gain or lose by the effect of the judgment. In this protest, Mrs. FPJ will not immediately and directly benefit from the outcome should it be determined that the declared president did not truly get the highest number of votes.

INFORMATION TECHNOLOGY FOUNDATION OF THE PHILIPPINES, ET AL. VS. COMMISSION ON ELECTIONS, COMELEC CHAIRMAN BENJAMIN ABALOS, SR., ET AL.
G.R. No. 159139. January 13, 2004

Facts: On June 7, 1995, Congress passed R.A. 8046 (An act authorizing the COMELEC to conduct a nationwide demonstration of a computerized election system and pilot-test it in the March 1996 elections in the Autonomous Region in Muslim Mindanao (ARMM) and for other purposes). On December 22, 1997, Congress enacted R.A. 8436 (An act authorizing the COMELEC to use an automated election system in the May 11, 1998 national or local elections and in subsequent national and local electoral exercises, providing funds therefore and for other purposes).
On October 29, 2002, COMELEC adopted its Resolution 02-0170 a modernization program for the 2004 elections. It resolved to conduct biddings for the three phases of its Automated Election System: namely, Phase I-Voter Registration and Validation System; Phase II-Automated Counting and Canvassing System; and Phase III-Electronic Transmissions.
President Gloria Macapagal-Arroyo issued EO No. 172, which allocated the sum of P 2.5 billion to fund the AES for May 10, 2004 elections. She authorized the release of an additional P 500 million, upon the request of COMELEC.
The COMELEC issued an “Invitation to Apply for Eligibility and to Bid”. There are 57 bidders who participated therein. The Bids and Awards Committee (BAC) found MPC and the Total Information Management Corporation (TIMC) eligible. Both were referred to Technical Working Group (TWG) and the Department of Science and Technology (DOST).
However, the DOST said in its Report on the Evaluation of Technical Proposals on Phase II that both MPC and TIMC had obtained a number of failed marks in technical evaluation. Notwithstanding these failures, the COMELEC en banc issued Resolution No. 6074, awarding the project to MPC.
Wherefore, petitioners Information Technology Foundation of the Philippines wrote a letter to the COMELEC chairman Benjamin Abalos, Sr. They protested the award of the contract to respondent MPC. However in a letter-reply, the COMELEC rejected the protest.

Issue: Whether or not the COMELEC committed grave abuse of discretion in awarding the contract to MPC in violation of law and in disregard of its own bidding rules and procedure.

Held: The Court has explained that COMELEC flagrantly violated the public policy on public biddings (1) by allowing MPC/MPEI to participate in the bidding even though it was not qualified to do so; and (2) by eventually awarding the contract to MPC/MPEI. It is clear that the Commission further desecrated the law on public bidding by permitting the winning bidder to alter the subject of the contract, in effect allowing a substantive amendment without public bidding.

SPECIAL ELECTION

ARTURO TOLENTINO AND ARTURO MOJICA VS. COMMISSION ON ELECTIONS, SENATOR RALPH RECTO AND SENATOR GREGORIO HONASAN
G.R. No. 148334. January 21, 2004

Facts: Following the appointment of Senator Teofisto Guingona as Vice-President of the Philippines, the Senate on February 8, 2001 passed Resolution No. 84, calling on COMELEC to fill the vacancy through a special election to be held simultaneously with the regular elections on May 14, 2001. Twelve senators, with 6-year term each, were due to be elected in that election. The resolution further provides that the “Senatorial candidate garnering the 13th highest number of votes shall serve only for the unexpired term of former Senator Teofisto Guingona, Jr. which ends on June 30, 2004.
On June 5, 2001, after canvassing the election results, the COMELEC proclaimed 13 candidates as the elected Senators, with the first 12 Senators to serve the unexpired term of 6 years and the 13th Senator to serve the full term of 3 years of Senator Teofisto Guingona, Jr. Gregorio Honasan ranked 13th.
Petitioners Arturo Tolentino and Arturo Mojica, as voters and taxpayers, filed the instant petition for prohibition, praying for the nullification of Resolution No. 01-005.

Issue: Whether or not the Special Election held on May 14, 2001 should be nullified: (1) for failure to give notice by the body empowered to and (2) for not following the procedure of filling up the vacancy pursuant to R.A. 6645.

Held: (1) Where the law does not fix the time and place for holding a special election but empowers some authority to fix the time and place after the happening of a condition precedent, the statutory provision on the giving of notice is considered mandatory, and failure to do so will render the election a nullity.
The test in determining the validity of a special election in relation to the failure to give notice of the special election is whether want of notice has resulted in misleading a sufficient number of voters as would change the result of special election. If the lack of official notice misled a substantial number of voters who wrongly believed that there was no special election to fill vacancy, a choice by small percentage of voters would be void.
(2) There is no basis in the petitioners’ claim that the manner by which the COMELEC conducted the special Senatorial election on May 14, 2001 is a nullity because the COMELEC failed to document separately the candidates and to canvass separately the votes cast for the special election. No such requirement exists in our election laws. What is mandatory under Section 2 of R.A. 6645 is that the COMELEC “fix the date of election,” if necessary, and state among others, the office/s to be voted for.
Significantly, the method adopted by the COMELEC in conducting the special election on May 14, 2001 merely implemented the procedure specified by the Senate in Resolution No. 84. Initially, the original draft of said resolution as introduced by Senator Francisco Tatad made no mention of the manner by which the seat vacated by former Senator Guingona would be filled. However, upon the suggestion of Senator Raul Roco, the Senate agreed to amend the resolution by providing as it now appears, that “the senatorial cabdidate garnering the 13th highest number of votes shall serve only for the unexpired term of former Senator Teofisto Giongona, Jr.”


ADMINISTRATIVE POWERS OF COMELEC

BAYTAN ET AL. VS. COMELEC
GR No. 153945. February 4, 2003

Facts: Reynato Baytan registered as a voter in two precincts and the COMELEC En Banc affirmed the recommendation of its Law Department to file information of double registration in violation of the Election Code. Baytan filed with the Supreme Court a petition for certiorari on the grounds, among others, that there was no probable cause and that election cases must first be heard and decided by a Division before the COMELEC En Banc can assume jurisdiction.

Held: 1. It is well- settled that the finding of probable cause in the prosecution of election offenses rests in the sound discretion of the COMELEC. Generally, the Court will not interfere with such finding of the COMELEC, absent a clear showing of grave abuse of discretion. This principle emanates from the exclusive power of the COMELEC to conduct preliminary investigation of all election investigation of all election offenses and to prosecute the same.
2. Under Sec. 2, Art. IX-C of the Constitution, the COMELEC exercises both administrative and quasi-judicial powers. The administrative powers are found in Sec 2. (1), (3) to (9) of Art IX-C. The Constitution does not provide on whether these administrative powers shall be exercised by the COMELEC en banc or in division. The COMELEC en banc therefore can act on administrative matters, and this had been the practice under the 1973 and 1987 Constitutions. The prosecution by the COMELEC of violations of election laws is an administrative power.
3. The exercise by the COMELEC of its quasi-judicial powers is subject to Sec.3, Art.IX-C which expressly requires that all election cases, including pre-proclamation controversies, shall be decided by the COMELEC in division, and the motion for reconsideration shall be decided by the COMELEC en banc.

IMMUNITY FROM CRIMINAL LIABILITY

BAROT VS. COMELEC ET AL.
GR No. 149147. June 18, 2003

Facts: In the May 14, 2001 elections Barot was proclaimed the 10th winning candidate for councilor of Tanjay City, Negros Oriental. On May 29, 2001 the Chairman of the Board of Canvassers sent a Memorandum to the COMELEC requesting for authority to correct the Certificate of Canvass and to proclaim Tabaloc, instead of Barot, as the 10th winning candidate for Councilor, by errors committed by the Board of Canvassers. The COMELEC considered the Memorandum as a petition, and after notice and hearing, granted the request. Tabaloc was proclaimed the 10th winning Councilor. Barot filed with the Supreme Court a petition for and prohibition.

Held: 1. Rule 27, Sec.5, par (b) of the COMELEC Rules provides that a petition for correction must be filed not later than five (5) days following the date of proclamation, impleading the candidates who may be adversely affected thereby. Rule 1, Sec.4 of the COMELEC Rules also provides that “in the interest of justice and in the order to obtain speedy disposition of all matters pending before the Commission, these rules or any option thereof may be suspended by the Commission.” The filing of the petition beyond the 5- day period was upheld in the interest of justice, it having been clearly shown that it was Tabaloc and not Barot who was the 10th winning candidate for councilor.
2. The COMELEC had the authority to consider the Memorandum of the Chairman of the Board of Canvassers, after notice and hearing, may even motu propio correct errors committed by in the tabulation of the votes.




PRE-PROCLAMATION CONTROVERSY

NAVARRO VS. COMELEC
GR No. 150799. February 3, 2003

Facts: Petitioner was a candidate for Mayor in the May 14, 2001 elections and during the canvassing, he petitioned the Board of Canvassers (BOC) to exclude the election returns contained in nine (9) ballot boxes on the ground that said boxes were not secured by the required “3 padlocks.” The BOC denied the petition and petitioner appealed to the COMELEC. The COMELEC en banc denied the appeal and ordered the BOC to proceed with the canvassing and proclaim the winning local candidates. Petitioner lost in the election.

Held: 1. Lack of the required number of padlocks on the ballot boxes is not a proper issue in a pre-proclamation controversy. The issues that may be raised in a pre-proclamation controversy are enumerated in Sec 243 of the Omnibus Election Code, to wit:
a. Illegal composition or proceeding of the board of canvassers;
b. The canvassed election returns are incomplete, contain material defects, and appear to be
tampered with or falsified, or contain discrepancies in the same returns or in other authentic copies thereof as mentioned in Sections 233, 234, 235, and 236 of this Code;
c. The election returns were prepared under duress, threats, coercion, or intimidation, or they are obviously manufactured or not authentic; and
d. When substitute or fraudulent returns in controverted polling places were canvassed, the results of which materially affected the standing of the aggrieved candidate or candidates.
This enumeration is exclusive.
2. A pre-proclamation controversy is limited to an examination of the election returns on their face and the COMELEC as a general rule need not go beyond the face of the returns and investigate the alleged election irregularities. In the case of Baterina, et al. v. COMELEC, 205 SCRA 1, the following facts were shown: (a) failure to close the entries with the signatures of the election inspectors; (b) lack of inner and outer seals; (c) canvassing by the Board of copies not intended for it; (d) lack of time and date receipt by the Board of the election returns; (e) lack of signatures of petitioners’ watchers; and (f) lack of authority of the person receiving the election returns. It was held that while said facts may, indeed, involve violation of the rules governing the preparation and delivery of election returns for canvassing, they do not necessarily affect the authenticity and genuineness of the subject election returns as to warrant their exclusion from the canvassing. Above facts are clearly defects in form insufficient to support a conclusion that the election returns were tampered with or spurious.
3. The COMELEC en banc validly ordered the proclamation of the winning candidate even during the pendency of the appeal to the COMELEC from the BOC’s denial of the petition for exclusion of the questioned election returns. RA 7166, Sec 20 (I) provides as follows:
(i) The BOC shall not proclaim any candidate as winner unless authorized by the Commission after the latter has ruled on the objection brought to it on appeal by the losing party. Any proclamation in violation hereof shall be void ab initio, unless the contested returns will not adversely affect the results of the election.
Above-quoted provision applies only where the objection deals with a pre-proclamation controversy.

IMMUNITY FROM CRIMINAL LIABILITY

COMELEC VS. TAGLE, ET AL.
GR No.s 148948 & 148951, February 17, 2003

Facts: In connection with the May 11, 1998 elections, candidate for Mayor Florentino A. Bautista filed a complaint against Mayor Federico Poblete et al. for vote –buying in violation of Sec 261 (a) and (b) of the Omnibus Election Code. The Information was docketed as Criminal Case No. 7034-99 of the RTC of Imus, Cavite. Subsequently, a complaint for vote-selling in violation of Sec 261 (a) of the Omnibus Election Code was filed with the Prosecutor’s Office as witnesses in Criminal Case No. 7034-99 and the Provincial Prosecutor in Imus, Cavite filed separate Informations for vote-selling against said witnesses. On appeal, the COMELEC en banc declared that the witnesses in Criminal Case No. 7034-99 were exempt from criminal prosecution pursuant to 4th paragraph of Sec 28, RA No. 6646, otherwise known as “The Electoral Reforms Law of 1987” which grants immunity from criminal prosecution to persons who voluntarily give information and willingly testify against those liable for vote-buying or vote-selling. The Law Department of the COMELEC moved to dismiss the Informations against the said witnesses but the RTC in Imus, Cavite denied the motion to dismiss.


Held: 1. One of the effective ways of preventing the commission of vote-buying and of prosecuting those committing it is the grant of immunity from criminal liability in favor of the party whose vote was bought. Sec 28 of RA No. 6646 concludes with the following paragraph:
The giver, offeror, the promissory as well as the solicitor, acceptor, recipient and conspirator referred to in paragraphs (a) and (b) of Section 261 of Batas Pambansa Blg. 881 shall be liable as principals: Provided, that any person, otherwise guilty under said paragraphs who voluntarily gives information and willingly testifies on any violation thereof in any official investigation or proceeding shall be exempt from prosecution and punishment for the offenses with reference to which his information and testimony were given: Provided, further, that nothing herein shall exempt such person from criminal prosecution for perjury or false testimony.
2. To avoid possible fabrication of evidence against the vote-buyers, especially by the latter’s opponents, Congress saw it fit to warn “vote-sellers” who denounce the vote-buying that they could be liable for perjury or false testimony should they not tell the truth.
3. The prosecution witnesses in Criminal Case No. 7034-99 are exempt from criminal prosecution for vote-selling by virtue of the proviso in the last paragraph of Section 28, RA 6646. At the time when the complaint for vote-selling was filed with the office of the Provincial Prosecutor, the respondents had already executed sworn statements attesting to the corrupt practice of vote-buying. It cannot then be denied that they had already voluntarily given information in the vote-buying case. In fact, they willingly testified in Crim. Case No. 7034-99.
4. The COMELEC has the exclusive power to conduct preliminary investigation of all election offenses punishable under the election laws and to prosecute the same. The Chief State Prosecutor, all Provincial and City Prosecutors, or their respective assistants are, however, given continuing authority, as deputies of the COMELEC to conduct preliminary investigation of complaints involving election offenses and to prosecute the same. This authority may be revoked or withdrawn by the COMELEC anytime whenever, in its judgment, such revocation or withdrawal is necessary to protect the integrity of the COMELEC and to promote the common good, or when it believes that the successful prosecution of the case can be done by the COMELEC. When the COMELEC nullified the resolution of the Provincial Prosecutor, it in effect withdrew the deputation granted by the COMELEC.

PREMATURE CAMPAIGNING

PANGKAT LAGUNA VS. COMELEC ET AL.
G.R. No. 148075. February 4, 2002

Facts: On January 30, 2001 then Vice Governor Teresita Lazaro succeeded to the office of the Governor of Laguna when then Gov. Jose Lina was appointed Secretary of the DILG. Upon assumption of office as Governor, Lazaro publicly declared her “intention to run for Governor” in the coming May 2001 elections. Subsequently, she ordered the purchase of trophies, basketballs, volleyballs, chessboard sets, t-shirts, medals and pins, and other sports materials worth P4.5 millions. Gov. Lazaro bidded 79 public works projects on March 28, 2001. Pangkat Laguna, a registered political party, filed a petition for disqualification of Gov. Lazaro for premature campaigning.

Held: 1. The act of Gov. Lazaro in “ordering the purchase of various items and the consequent distribution thereof of Laguna, in line with the local government unit’s sports and education program” is not election campaigning or partisan political activity contemplated and explicitly prescribed under the pertinent provisions of Sec 80 of the Omnibus Election Code.
2. Evidence is wanting to sufficiently establish the allegation that public funds were released, disbursed, or expended during the 45-day prohibitive period provided under the law and implementing rules. Absent such clear and convincing proof, the factual findings of the COMELEC cannot be disturbed considering that the COMELEC is the constitutional body tasked to decide, except those involving the right to vote, all questions affecting elections.

PUBLIC CORPORATION / PUBLIC OFFICERS

LOCAL GOVERNMENTS; SANGGUNIANG PANLALAWIGAN; MAJORITY OF ALL THE MEMBERS REQUIRED TO CONSTITUTE QUORUM

MANUEL ZAMORA VS. GOV. JOSE CABALLERO, ET AL.
G.R. No. 147767. January 14, 2002

Facts: Manuel Zamora, a member of the Sangguniang Panlalawigan of Compostela Valley, filed before the RTC a petition to invalidate all acts executed and resolutions issued by the Sanggunian during its sessions held on February 8 and 26, 2001 for lack of quorum. Said sessions noted the resignation letter of Board Member Sotto, declared the entire province under a state of calamity and approved the Governor to enter into the contract with the Allado Company. Zamora, the petitioner, argued that the Sanggunian, during its February 26 session, conducted official business without a quorum since only 7 out of the 14 members were present. He further questioned the February 8 session’s validity arguing that only 7 members were present and the failure to provide written notice to all members at least 24 hours before the holding of the special session. Respondents argued that Board Member Sotto was in the United States during such sessions and that the actual number of Board Members in the country was only 13 which, they claimed, should be the basis for the determination of a quorum. Such petition raised by Zamora was dismissed by the RTC but reversed and granted by the Supreme Court.

Issues: 1) Whether or not Section 53 (a) of the LGC provides and specifies applicable rule regarding the determination of a quorum.

2) Whether or not Sanggunian Members who are abroad should not be included in the counting of the entire Sangguniang body.

3) Whether or not the approved decisions during the sessions, alleged to be without quorum, is deemed to be valid.

Held: Section 53 (a) of the LGC states that : “A majority of all members of the Sanggunian who have been elected and qualified shall constitute a quorum to transact official business.” Quorum is defined as the “number of members of a body which, when legally assembled, will enable the body to transact its proper business or that number which makes a lawful body and gives it power to pass upon a law or ordinance or do any valid act.” When required to constitute a quorum, “majority” means the number greater than half or more than half of the total.
As further stated, it requires the majority of ALL members of the Sanggunian. Quorum should, thus, be based on the total number of members regardless of whether or not a member is said to be abroad.
Therefore, in cases where decisions have been made during sessions deemed to have not met the required quorum, such sessions and decisions shall be considered void.

LOCAL GOVERNMENT; 3-TERM LIMIT

RAYMUNDO ADORMEO VS. COMELEC, ET AL.
G.R. No. 147927. February 4, 2002

Facts: Respondent Talaga was elected Mayor of Lucena City in 1992, re-elected in 1995, but lost to Tagarao in 1998 elections. Tagarao was recalled and in the May 12, 2000 recall elections, Talaga won and served the unexpired term of Tagarao until June 30, 2001. Talaga was candidate for Mayor in the May 14, 2001 elections, and a petition for cancellation of his certificate of candidacy was filed on the ground that he has served as Mayor for three consecutive terms.

Issue: Whether or not Talaga has served as Mayor of Lucena City for three consecutive terms.

Held: The term limit for elective local officials must be taken to refer to the right to be elected as well as the right to serve in the same elective position. Consequently, it is not enough that an individual has served three consecutive terms in an elective local office. He must also have been elected to the same position for the same number of times before the disqualification can apply.
In the case at bar, Talaga did not serve for 3 consecutive terms. For nearly 2 years, he was a private citizen. The continuity of his mayorship was disrupted by his defeat in the 1998 elections.
“If one is elected representative to serve the unexpired term of another, that unexpired term, no matter how short, will be considered one term for the purpose of computing the number of successive terms allowed”—this comment of Constitutional Commissioner Fr. Bernas applies only to members of the House of Representatives. Unlike government officials, there is no recall election for members of Congress.

PUBLIC OFFICERS; ANTI-GRAFT

MAYOR ALVIN GARCIA VS. HON. PRIMO. MIRA, ET AL.
G.R. No. 148944. February 5, 2003

Facts: City Mayor Garcia was charged by Ombudsman Special Prosecution Officer Jesus Rodrigo Tagaan for violation of the Anti-Graft Law as a result of his having entered into a contract with F.E. Zuellig for the supply of asphalt batching plant for three years. The joint affidavits of State Auditors Cabreros and Quejada alleged that petitioner entered into the contract without available funds appropriated to cover the expenditure in violation of Sections 85 and 86 of P.D. 1445 or the State Audit Code of the Phil.; that petitioner exceeded the authority granted him by the Sangguniang Panlungsod; and that the contract is manifestly disadvantageous to the City. Note however that thereafter, Special Prosecution Officer Tagaan resigned from his office and his name was withdrawn as complainant in the case. Instead of filing a counter-affidavit, Garcia filed with the Supreme Court a petition to prohibit the Ombudsman from conducting the preliminary investigation on the ground that there is no sufficient complaint.

Issue: Whether or not the complaint/affidavits filed against Garcia is sufficient in form or manner.

Held: For purposes of initiating a preliminary investigation before the Office of the Ombudsman, a complaint in any form or manner is sufficient. The Constitution states that the Ombudsman and his Deputies, as protectors of the people, shall act promptly on complaints filed in any form or manner against public officials or employees of the government. In Almonte vs. Vasquez, 244 SCRA 286, we held that even unverified and anonymous letters may suffice to start an investigation. The Office of the Ombudsman is different from the other investigatory and prosecutory agencies of the government because those subject to its jurisdiction are public officials who, through official pressure and influence, can quash, delay, or dismiss investigations against them. The joint affidavits of State Auditors Cabreros and Quejada contain allegations specific enough for petitioner to prepare his evidence and counter-arguments.
The fact that Special Prosecution Officer Tagaan already resigned from his office and that his name was withdrawn as complainant in the case is of no consequence. First, Tagaan’s report and affidavit still form part of the records of the case. He can still be called by subpoena, if necessary. Second, Tagaan was only a nominal party whose duty as special prosecutor was to investigate the commission of crimes and file the corresponding complaint whenever warranted. Since the illegal acts committed are public offenses, the real complainant is the State, which is represented by the remaining complainants.

PUBLIC OFFICERS; APPOINTMENT; CONFIRMATION BY COA

ATTY. ELPIDIO SORIANO III VS. REUBEN LISTA, ET AL.
G.R. No. 153881. March 24, 2003

Facts: Eight officers of the Philippine Coast Guard (PCG) were promoted by the President to Vice Admiral, Rear Admiral, Commodore, Naval Captain, and they assumed office without confirmation by the Commission on Appointments (COA). Petitioner, as a taxpayer, filed a petition with the Supreme Court questioning the constitutionality of their assumption of office, which requires confirmation of the COA.

Held: Petitioner has no locus standi. A party bringing a suit challenging the constitutionality of an act or statute must show not only that the law or act is invalid, but also that he has sustained, or is in immediate or imminent danger of sustaining some direct injury as a result of its enforcement and not merely that he suffers thereby in some indefinite way. The instant petition cannot even be classified as a taxpayer’s suit because petitioner has no interest as such and this case does not involve the exercise by Congress of its taxing power.
Pursuant to Executive Order of President Ramos, the PCG was transferred from the Department of National Defense to the Office of the President, and later to the Department of Transportation and Communication (DOTC).