Caltex: there is no element of consideration

1. GR%L'19650! CALTEX!V!PALOMAR!

-you do not have to buy anything from Caltex to join the Caltex

! In! 1960,! Caltex! announced! its! Caltex! Hooded! Pump! Contest.! Foreseeing! the! extensive! use! of! the! mails! not! only! as! amongst! the! media! for! publicizing! the! contest! but! also! for! the! transmission! of! communications! relative! thereto,! representations! were! made! by! Caltex! with! the! postal! authorities!for!the!contest!to!be!cleared!in!advance!for!mailing!and!to!make!sure!that!the!contest!does!not!violate!the!antiHlottery!provision!of!the! Revised!Administrative!Code.!Palomar!however!denied!the!mailing!of!such!contest!rules!according!to!him!violates!the!said!provision.!He!contends! that! the! contest! can! be! subject! to! fraud! order! if! pursued! because! it! falls! under! any! lottery,! gift! enterprise,! or! scheme! for! the! distribution! of! money,!or!of!any!real!or!personal!property!by!lot,!chance,!or!drawing!of!any!kind!which!is!not!allowed!by!the!Postal!Law.!Caltex!referred!the!case! to! the! trial! court! and! the! trial! court! ruled! in! favor! of! Caltex.! Palomar! appealed! arguing! that! Caltex! has! no! sufficient! cause! of! action! to! seek! declaratory!relief!(and!decisions!can!only!be!advisory!in!nature)!and!that!the!proposed!contest!does!violate!the!Postal!Law.! ! LAW%TALKED%ABOUT:% !!!!!!!!!!SECTION!1954.!Absolutely*non,mailable*matter.!!No!matter!belonging!to!any!of!the!following!classes,!whether!sealed!as!firstHclass! matter!or!not,!shall!be!imported!into!the!Philippines!through!the!mails,!or!to!be!deposited!in!or!carried!by!the!mails!of!the!Philippines,!or! be!delivered!to!its!addressee!by!any!officer!or!employee!of!the!Bureau!of!Posts:!

price chance consideration

!!!!!!!!!!Written!or!printed!matter!in!any!form!advertising,!describing,!or!in!any!manner!pertaining!to,!or!conveying!or!purporting!to!convey! any! information! concerning! any! lottery,! gift! enterprise,! or! similar! scheme! depending! in! whole! or! in! part! upon! lot! or! chance,! or! any! scheme,! device,! or! enterprise! for! obtaining! any! money! or! property! of! any! kind! by! means! of! false! or! fraudulent! pretenses,! representations,!or!promises.! !!!!!!!!!!"SECTION!1982.!Fraud*orders.Upon!satisfactory!evidence!that!any!person!or!company!is!engaged!in!conducting!any!lottery,!gift! enterprise,!or!scheme!for!the!distribution!of!money,!or!of!any!real!or!personal!property!by!lot,!chance,!or!drawing!of!any!kind,!or!that!any! person!or!company!is!conducting!any!scheme,!device,!or!enterprise!for!obtaining!money!or!property!of!any!kind!through!the!mails!by! means!of!false!or!fraudulent!pretenses,!representations,!or!promises,!the!Director!of!Posts!may!instruct!any!postmaster!or!other!officer! or! employee! of! the! Bureau! to! return! to! the! person,! depositing! the! same! in! the! mails,! with! the! word! "fraudulent"! plainly! written! or! stamped!upon!the!outside!cover!thereof,!any!mail!matter!of!whatever!class!mailed!by!or!addressed!to!such!person!or!company!or!the! representative!or!agent!of!such!person!or!company.! !! !! !! !! !! SECTION! 1983.!Deprivation* of* use* of* money* order* system* and* telegraphic* transfer* service.The! Director! of! Posts! may,! upon! evidence! satisfactory! to! him! that! any! person! or! company! is! engaged! in! conducting! any! lottery,! gift! enterprise! or! scheme! for! the! distribution! of! money,! or! of! any! real! or! personal! property! by! lot,! chance,! or! drawing! of! any! kind,! or! that! any! person! or! company! is! conducting! any! scheme,! device,! or! enterprise! for! obtaining! money! or! property! of! any! kind! through! the! mails! by! means! of! false! or! fraudulent! pretenses,! representations,! or! promise,! forbid! the! issue! or! payment! by! any! postmaster! of! any! postal! money! order! or! telegraphic! transfer! to! said! person! or! company! or! to! the! agent! of! any! such! person! or! company,! whether! such! agent! is! acting! as! an! individual!or!as!a!firm,!bank,!corporation,!or!association!of!any!kind,!and!may!provide!by!regulation!for!the!return!to!the!remitters!of!the! sums!named!in!money!orders!or!telegraphic!transfers!drawn!in!favor!of!such!person!or!company!!

Extrinsic%aids%in%statutory%construction%SPIRIT%AND%INTENT%OF%THE%LAW%and%LETTER%OF%THE%LAW% As!applied!to!lotteries,!gift!enterprises!and!similar!schemes,!justification!lies!in!the!recognized!necessity!to!suppress!their!tendency!to!inflame!the! gambling!spirit!and!to!corrupt!public!morals.!!

gift enterprise: through legal dictionaries

Gratuitous! distribution! of! property! by! lot! or! chance! does! not! constitute! "lottery",! if! it! is! not! resorted! to! as! a! device! to! evade! the! law! and!no* consideration*is*derived,!directly!or!indirectly,!from!the!party!receiving!the!chance,!gambling*spirit*not*being*cultivated*or*stimulated*thereby.! There!is!no!obstacle!in!saying!the!same!respecting!a!gift!enterprise.!Under!the!prohibitive!provisions!of!the!Postal!Law!which!we!have!heretofore! examined,! gift! enterprises! and! similar! schemes! therein! contemplated! are! condemnable! only! if,! like! lotteries,! they! involve! the! element! of! consideration! % 2. GR%94723% SALVACION%vs.%CENTRAL%BANK%OF%THE%PHILIPPINES,%CHINA%BANKING%CORPORATION%and%GREG%BARTELLI% % Extrinsic% aids% in% statutory% construction% SPIRIT% AND% INTENT! original! intent! of! a! statute! and! INTERPRETATION% OF% THE% LAW.! Statutes! or! even! constitutions!are!bundles!of!compromises!thrown!our!way!by!their!framers.!!Unless!we!exercise!vigilance,!the!statute!may!already!be!out!of!tune! and!irrelevant!to!our!day.! This!aid!is!applied!here!in!the!issues!raised!and!the!arguments!articulated!by!the!parties!boil!down!to!two:! ! May! this! Court! entertain! the! instant! petition! despite! the! fact! that! original! jurisdiction! in! petitions! for! declaratory! relief! rests! with! the! lower! court?!!The!Section!113!of!Central!Bank!Circular!No.!960!and!Section!8!of!R.A.!6426,!as!amended!by!P.D.!1246,!otherwise!known!as!the!Foreign! Currency!Deposit!Act!be!made!applicable!to!a!foreign!transient?!

% LAW%TALKED%ABOUT:% % Provision%of%Central%Bank%Circular%No.%960:% Sec.!113!!Exemption!from!attachment.!!Foreign!currency!deposits!shall!be!exempt!from!attachment,!garnishment,!or!any! other!order!or!process!of!any!court,!legislative!body,!government!agency!or!any!administrative!body!whatsoever.! % %The%aforecited%Section%113%was%copied%from%Section%8%of%Republic%Act%No.%6426.%As%amended%by%P.D.%1246:% Sec.!8.!!Secrecy!of!Foreign!Currency!Deposits.!HH!All!foreign!currency!deposits!authorized!under!this!Act,!as!amended!by!PD! No.!1035,!as!well!as!foreign!currency!deposits!authorized!under!PD!No.!1034,!are!hereby!declared!as!and!considered!of!an! Bartelli absolutely!confidential!nature!and,!except!upon!the!written!permission!of!the!depositor,!in!no!instance!shall!such!foreign! -not covered since currency! deposits! be! examined,! inquired! or! looked! into! by! any! person,! government! official,! bureau! or! office! whether! judicial!or!administrative!or!legislative!or!any!other!entity!whether!public!or!private:!Provided,!however,!that!said!foreign! he is a tourist currency!deposits!shall!be!exempt!from!attachment,!garnishment,!or!any!other!order!or!process!of!any!court,!legislative! body,!government!agency!or!any!administrative!body!whatsoever.! ! INTERPRETATION:!Obviously,!the!foreign!currency!deposit!made!by!a!transient!or!a!tourist!is!not!the!kind!of!deposit!encourage!by!PD!Nos.! 1034! and! 1035! and! given! incentives! and! protection! by! said! laws! because! such! depositor! stays! only! for! a! few! days! in! the! country! and,! therefore,! will! maintain! his! deposit! in! the! bank! only! for! a! short! time.! Meaning! that! the! dollar! deposit! of! respondent! Greg! Bartelli! is! not! entitled!to!the!protection!of!Section!113!of!Central!Bank!Circular!No.!960!and!PD!No.!1246!against!attachment,!garnishment!or!other!court! processes.! % LEGAL%MAXIM%Ninguno*non*deue*enriquecerse*tortizerzmente*con*damo*de*otro.:!Application!of!the!law!depends!on!the!extent!of!its!justice.!If! the!court!rules!that!the!questioned%Section%113%of%Central%Bank%Circular%No.%960!which!exempts!from!attachment,!garnishment,!or!any!other!order! or!process!of!any!court!APPLICABLE!to!a!foreign!transient,! injustice%would%result%especially%to%a%citizen%aggrieved%by%a%foreign%guest%like%accused% Greg%Bartelli.%!This!would!negate! Article%10%of%the%New%Civil%Code%which%provides%that% in!case!of!doubt!in!the!interpretation!or!application!of! laws,!it!is!presumed!that!the!lawmaking!body!intended!right!and!justice!to!prevail.**Simply!stated,!when!the!statute!is!silent!or!ambiguous,!this!is! one!of!those!fundamental!solutions!that!would!respond!to!the!vehement!urge!of!conscience.! ! It!is!worth!mentioning!that!R.A.!No.!6426!was!enacted!at!a!time!when!the!countrys!economy!was!in!a!shambles;!when!foreign!investments!were! minimal! and! presumably,! this! was! the! reason! why! said! statute! was! enacted.!!But! the! realities! of! the! present! times! show! that! the! country! has! recovered! economically;! and! even! if! not,! the! questioned! law! still! denies! those! entitled! to! due! process! of! law! for! being! unreasonable! and! oppressive.!!The!intention!of!the!questioned!law!may!be!good!when!enacted.!!The!law!failed!to!anticipate!the!inquitous!effects!producing!outright! injustice!and!inequality!such!as!as!the!case!before!us.! ! Laws!and!institutions!must!go!hand!in!hand!with!the!progress!of!the!human!mind.!!As!that!becomes!more!developed,!more!enlightened,!as!new! discoveries! are! made,! new! truths! are! disclosed! and! manners! and! opinions! change! with! the! change! of! circumstances,! institutions! must! advance! also,!and!keep!pace!with!the!times...!The!use!of!the!questioned!SEC113!of!CB!960!by!Greg!Bartelli!for!wrong!doing!would!be!acquitting!the!guilty!at! the!expense!of!the!innocent.!! ! No!conflict!of!legal!policy!H!!Dollar!against!Peso?!!Upholding!the!final!and!executory!judgment!of!the!lower!court!against!the!Central!Bank!Circular! protecting!the!foreign!depositor?!!Shielding!or!protecting!the!dollar!deposit!of!a!transient!alien!depositor!against!injustice!to!a!national!and!victim! of!a!crime?!!This!situation!calls!for!fairness!legal!tyranny.! ! We!definitely!cannot!have!both!ways!and!rest!in!the!belief!that!we!have!served!the!ends!of!justice.! Provisions!of!Section!113!of!CB!Circular!No.!960!and!PD!No.!1246,!insofar!as!it!amends!Section!8!of!R.A.!6426!are!hereby!held!to!be!INAPPLICABLE! to!this!case!because%of%its%peculiar%circumstances.%! % 3. GR%138298% DEL%MAR%V!PAGCOR% % LAW%TALKED%ABOUT:% Section%10%of%P.D.%No.%1869%grants%it%a%franchise%to%operate%jai'alai.!!Section!10!provides:! SEC.!10!Nature%and%term%of%franchise.%!Subject!to!the!terms!and!conditions!established!in!this!Decree,!the!Corporation!is!hereby!granted!for!a! period!of!twentyHfive!(25)!years,!renewable!for!another!twentyHfive!(25)!years,!the!rights,!privilege!and!authority!to!operate!and!maintain!gambling! casinos,!clubs,!and!other!recreation!or!amusement!places,!sports,!gaming!pools,!i.e.,!basketball,!football,!lotteries,!etc.,!whether!on!land!or!sea,! within!the!territorial!jurisdiction!of!the!Republic!of!the!Philippines.! Extrinsic%aids%in%statutory%construction%% PLAIN%MEANING%RULE% These! two! consolidated! petitions! concern! the! issue! of! whether! the! franchise! granted! to! the! Philippine! Amusement! and! Gaming! Corporation! (PAGCOR)!includes!the!right!to!manage!and!operate!jaiHalai.!

Gaming!!the!act!or!practice!of!playing!games!for!stakes!!depends!largely!on!the!context!of!the!instrument,!description!and!enumeration!of!the! matters! preceding! the! term! and! subject! to! which! it! is! applied.!When! used! in! a! statute,! the! words! should! be! given! their! usual!and! natural! signification.! !! LANGUAGE%OF%THE%STATUTE% When!words!and!phrases!of!a!statute!are!clear!and!unequivocal,!their!meaning!must!be!determined!from!the!language!employed!and!the!statute! must! be! taken! to!mean! exactly! what! it! says.! Del! Mar! says! that! there! is! no! specific! mention! of!jai! alai! and! there! should! have! been! an! express! mention!of!!jai!alai.!If!that!would!be!the!case,!it!would!render!ineffective!the!use!of!the!word!etc!in!the!said!law.! ! A!statute!is!to!be!favored!and!must!be!adopted!if!reasonably!possibly,!which!will!give!meaning!to!every!word,!clause,!and!sentence!of!the!statute! and! operation! and!effect! to! every! part! and! provision! of! it.! Del! Mar! says! that! the! operations! of! jai! alai! was! a!legislative! grant! by! Marcos! to!a! corporation!controlled!by!his!inHlaws,!the!Philippine!Jai!Alai!and!Amusement!Corporation!(PJAC).! ! It! is! improper! to!inquire! into! the! motives! that! influenced! the! legislative! body! except! when! those! motives! are! disclosed! (revealed)! by! the! statute!itself.!Del!Mar!insist!that!PAGCOR!was!created!to!operate!games!of!chance!or!gaming!pools!for!which!no%franchises!have!been!granted.!P.D.% No.%1869%does%not%have%the%standard%marks%of%a%law%granting%a%franchise%to%operate%jai'alai%as%those%found%under%P.D.%No.%810%or%E.O.%135.% The! fact!that!there!was!an!existing!jai!alai!franchise!of!PJAC!the!time!PD!1869!went!into!effect!does!not!mean!that!jai!alai!can!never!be!the!subject!of! PAGCORs!franchise!upon!repeal!of!PJACs!franchise.!PAGCOR!was!primarily!created!to!maximize!potential!sources!of!revenue! 4. GR%123169% PARAS%vs.%COMMISSION%ON%ELECTIONS%

Petitioner! Danilo! E.! Paras! is! the! incumbent! Punong! Barangay! of!Pula,!Cabanatuan!City!who! won! during! the! last! regular! barangay! election! in! 1994.!!A!petition!for!his!recall!as!Punong!Barangay!was!filed!by!the!registered!voters!of!the!barangay.!petitioner!insists!that!the!scheduled!January! 13,!1996!recall!election!is!now!barred!as!the!Sangguniang!Kabataan!(SK)!election!was!set!by!Republic!Act!No.!7808!on!the!first!Monday!of!May! 1996,!and!every!three!years!thereafter.!Petitioner!maintains!that!as!the!SK!election!is!a!regular!local!election,!hence!no!recall!election!can!be!had! for!barely!four!months!separate!the!SK!election!from!the!recall!election.!!We!do!not!agree.! LAWS%TALKED%ABOUT:%

-circumventing the law

The!subject!provision!of!the!Local!Government!Code!provides:! ! SEC.!74.!Limitations*on*Recall.!!! (a)!Any!elective!local!official!may!be!the!subject!of!a!recall!election!only!once!during!his!term!of!office!for!loss!of!confidence.! ! (b)!No!recall!shall!take!place!within*one!(1)!year!from!the!date!of!the!officials!assumption!to!office!or!one!(1)!year!immediately!preceding!a!regular* local*election.! It!is!a!rule!in!statutory!construction!that!every!part!of!the!statute!must!be!interpreted!with!reference!to!the!context,!i.e.,!that!every!part!of!the! statute!must!be!considered!together!with!the!other!parts,!and!kept!subservient!to!the!general!intent!of!the!whole!enactment.!The!evident!intent!of! Section!74!is!to!subject!an!elective!local!official!to!recall!election!once!during!his!term!of!office.!Paragraph%(b)%construed%together%with%paragraph% (a)%merely%designates%the%period%when%such%elective%local%official%may%be%subject%of%a%recall%election,%that%is,%during%the%second%year%of%his%term% of%office.!!! It! is! likewise! a! basic! precept! in! statutory! construction! that! a! statute! should! be! interpreted! in! harmony! with! the! Constitution.! ! Thus,! the! interpretation!of!Section!74!of!the!Local!Government!Code,!specifically!paragraph!(b)!thereof,! should%not%be%in%conflict%with%the%Constitutional% mandate% of% Section% 3% of% Article% X% of% the% Constitution! to! enact! a! local! government! code! which! shall! provide! for! a! more! responsive! and! accountable! local! government! structure! instituted! through! a! system! of! decentralization! with!effective* mechanisms* of* recall,! initiative,! and! ! referendum. Moreover,!petitioners!too!literal%interpretation%of%the%law%leads%to%absurdity!which!we!cannot!countenance.!Thus,!in!a!case,!the!Court!made! the!following!admonition:! We!admonish!against!a!tooHliteral!reading!of!the!law!as!this!is!apt!to!constrict!rather!than!fulfill!its!purpose!and!defeat!the!intention!of!its! authors.!That!intention!is!usually!found!not!in!the!letter!that!killeth!but!in!the!spirit!that!vivifieth.! The!SPIRIT,%RATHER%THAN%THE%LETTER%OF%A%LAW%determines!its!construction;!hence,!a!statute,!as!in!this!case,!must!be!read!according!to!its!SPIRIT% AND%INTENT.! Finally,!recall!election!is!potentially!disruptive!of!the!normal!working!of!the!local!government!unit!necessitating!additional!expenses,!hence! the! prohibition! against! the! conduct! of! recall! election! one! year! immediately! preceding! the!regular* local* election.!!The! proscription! is! due! to! the! proximity!of!the!next!regular!election!for!the!office!of!the!local!elective!official!concerned.!!The!electorate!could!choose!the!officials!replacement! in!the!said!election!who!certainly!has!a!longer!tenure!in!office!than!a!successor!elected!through!a!recall!election.!!It!would,!therefore,!be!more!in! keeping!with!the!intent!of!the!recall!provision!of!the!Code!to!construe!regular*local*election!as!one!referring!to!an!election!where!the!office!held!by! the!local!elective!official!sought!to!be!recalled!will!be!contested!and!be!filled!by!the!electorate.! 5. ! GR%L'30642% FLORESCA%vs.!PHILEX%MINING%CORPORATION%*

Petitioners!are!the!heirs!of!the!deceased!employees!of!Philex!Mining!Corporation!who,!while!working!at!its!copper!mines!underground!operations,! died!as!a!result!of!the!caveHin!that!buried!them!in!the!tunnels!of!the!mine.!Specifically,!the!complaint!alleges!that!Philex,!in%violation!of!government! rules! and! regulations,! negligently! and! deliberately! failed! to! take! the! required! precautions! for! the! protection! of! the! lives! of! its! men! working! underground.% % LAWS%TALKED%ABOUT:% PHILEX! asserts! that! workHconnected! injuries! are! compensable! exclusively! under! the! provisions! of! Sections! 5! and! 46! of! the! Workmen's! Compensation!Act,!which!read:! % SEC.%5.% Exclusive!right!to!compensatio.The!rights!and!remedies!granted!by!this!Act!to!an!employee!by!reason!of!a!personal! injury! entitling! him! to! compensation! shall! exclude! all! other! rights! and! remedies! accruing! to! the! employee,! his! personal! representatives,!dependents!or!nearest!of!kin!against!the!employer!under!the!Civil!Code!and!other!laws!because!of!said!injury! ...! % SEC.%46.%Jurisdiction!!The!Workmen's!Compensation!Commissioner!shall!have!exclusive!jurisdiction!to!hear!and!decide!claims! for!compensation!under!the!Workmen's!Compensation!Act,!subject!to!appeal!to!the!Supreme!Court,!...! % Petitioners!said!that!Court!of!First!Instance!has!no!jurisdiction!over!the!case!and!filed!an!opposition!claiming!that!the!causes!of!action!are!not!based! on!the!provisions!of!the!Workmen's!Compensation!Act!but!on!the!provisions!of!the!Civil!Code!allowing!the!award!of!actual,!moral!and!exemplary! damages,!particularly:! Art.! 2176.! Whoever! by! act! or! omission! causes! damage! to! another,! there! being! fault! or! negligence,! is! obliged! to! pay! for! the! damage!done.!Such!fault!or!negligence,!if!there!is!no!preH!existing!contractual!relation!between!the!parties,!is!called!a!quasiH delict!and!is!governed!by!the!provisions!of!this!Chapter.! Art.!2178.!The!provisions!of!articles!1172!to!1174!are!also!applicable!to!a!quasiHdelict.! (b)!Art.!1173The!fault!or!negligence!of!the!obligor!consists!in!the!omission!of!that!diligence!which!is!required!by!the!nature!of! the!obligation!and!corresponds!with!the!circumstances!of!the!persons,!of!the!time!and!of!the!place.!When!negligence!shows! bad!faith,!the!provisions!of!Articles!1171!and!2201,!paragraph!2!shall!apply.! ! Art.!2201.!In!case!of!fraud,!bad!faith,!malice!or!wanton!attitude,!the!obligor!shall!be!responsible!for!all!damages!which!may!be! reasonably!attributed!to!the!nonHperformance!of!the!obligation.! ! Art.!2231.!In!quasiHdelicts,!exemplary!damages!may!be!granted!if!the!defendant!acted!with!gross!negligence.! ! The!issue!to!be!resolved!as!WE!stated!in!the!resolution!of!November!26,!1976,!is:! Whether!the!action!of!an!injured!employee!or!worker!or!that!of!his!heirs!in!case!of!his!death!under!the!Workmen's!Compensation!Act!is! exclusive,!selective!or!cumulative,!that!is!to!say,!whether!his!or!his!heirs'!action!is!exclusively!restricted!to!seeking!the!limited!compensation! provided! under! the! Workmen's! Compensation! Act! or! whether! they! have! a! right! of! selection! or! choice! of! action! between! availing!of! the! worker's! right! under! the! Workmen's! Compensation! Act! and! suing! in! the! regular! courts! under! the! Civil! Code! for! higher! damages! (actual,! moral!and/or!exemplary)!from!the!employer!by!virtue!of!negligence!(or!fault)!of!the!employer!or!of!his!other!employees!or!whether!they! may!avail!cumulatively!of!both!actions,!i.e.,!collect!the!limited!compensation!under!the!Workmen's!Compensation!Act!and!sue!in!addition! for!damages!in!the!regular!courts.! ! It! should! be! underscored! that! petitioners'! complaint! is! not! for! compensation! based! on! the! Workmen's! Compensation! Act! but! a! complaint! for! damages.! ! Under! the! law,! Floresca! et! al! could! only! do! either! one.! If! they! filed! for! benefits! under! the! WCA! then! they! will! be! estopped! from! proceeding! with! a! civil! case! before! the! regular! courts.! Conversely,! if! they! sued! before! the! civil! courts! then! they! would! also! be! estopped! from! claiming!benefits!under!the!WCA.!The!SC!however!ruled!that!Floresca!et!al!are!excused!from!this!deficiency!due!to!ignorance!of!the!fact.!Had!they! been!aware!of!such!then!they!may!have!not!availed!of!such!a!remedy.!However,!if!in!case!theyll!win!in!the!lower!court!whatever!award!may!be! granted,!the!amount!given!to!them!under!the!WCA!should!be!deducted.!The!SC!emphasized!that!if!they!would!go!strictly!by!the!book!in!this!case! then! the! purpose% of% the% law% may! be! defeated.! Idolatrous! reverence! for! the! letter! of! the! law! sacrifices! the! human! being.! The! spirit% of% the% law! insures!mans!survival!and!ennobles!him.!As!Shakespeare!said,!the!letter!of!the!law!killeth!but!its!spirit!giveth!life.! !! Separate%Opinions!% MELENCIO'HERRERA,!J.,!dissenting:! In!regards!to!the!intent!of!the!Legislature!under!the!foregoing!provision:! A!cardinal!rule!in!the!interpretation!of!statutes!is!that!the!meaning%and%intention%of%the%law'making%body%must%be%sought,%first% of%all%in%the%words%of%the%statute%itself,!read!and!considered!in!their!natural,!ordinary,!commonlyHaccepted!and!most!obvious! significations,!according!to!good!and!approved!usage!and!without!resorting!to!forced!or!subtle!construction!Courts,!therefore,! as!a!rule,!cannot!presume!that!the!lawHmaking!body!does!not!know!the!meaning!of!words!and! the%rules%of%grammar%(Intrinsic% aid).!Consequently,!the!grammatical!reading!of!a!statute!must!be!presumed!to!yield!its!correct!sense.!! % 6. % GR%L'39419%! AISPORNA%vs.!THE%COURT%OF%APPEALS!

In!this!petition!for!certiorari,!petitionerHaccused!Aisporna!seeks!the!reversal!of!the!decision!of!respondent!Court!of!Appeals!affirming!the!judgment! which!found!the!petitioner!guilty!for!having!violated!Section!189!of!the!Insurance!Act!(Act!No.!2427,!as!amended)!and!sentenced!her!to!pay!a!fine! of!P500.00!with!subsidiary!imprisonment!in!case!of!insolvency,!and!to!pay!the!costs.! ! The!accused,!did!then!and!there,!wilfully,!unlawfully!and!feloniously!act!as!agent!in!the!solicitation!or!procurement!of!an!application!for! insurance!by!soliciting!therefor!the!application!of!one!Eugenio!S.!Isidro,!without!said!accused!having!first!secured!a!certificate!of!authority! to!act!as!such!agent!from!the!office!of!the!Insurance!Commissioner,!RP.! % LAWS%TALKED%ABOUT:% The!pertinent!provision!of!Section!189!of!the!Insurance!Act!reads!as!follows:! No!insurance!company!doing!business!within!the!Philippine!Islands,!nor!any!agent!thereof,!shall!pay!any!commission!or!other! compensation! to! any! person! for! services! in! obtaining! new! insurance,! unless! such! person! shall! have! first! procured! from! the! Insurance!Commissioner!a!certificate!of!authority!to!act!as!an!agent!of!such!company!as!hereinafter!provided.!No!person!shall! act! as! agent,! subHagent,! or! broker! in! the! solicitation! of! procurement! of! applications! for! insurance,! or! receive! for! services! in! obtaining!new!insurance,!any!commission!or!other!compensation!from!any!insurance!company!doing!business!in!the!Philippine! Islands,! or! agent! thereof,! without! first! procuring! a! certificate! of! authority! so! to! act! from! the! Insurance! Commissioner,! which! must!be!renewed!annually!on!the!first!day!of!January,!or!within!six!months!thereafter.!Such!certificate!shall!be!issued!by!the! Insurance!Commissioner!only!upon!the!written!application!of!persons!desiring!such!authority,!such!application!being!approved! and! countersigned! by! the! company! such! person! desires! to! represent,! and! shall! be! upon! a! form! approved! by! the! Insurance! Commissioner,!giving!such!information!as!he!may!require.!The!Insurance!Commissioner!shall!have!the!right!to!refuse!to!issue!or! renew!and!to!revoke!any!such!certificate!in!his!discretion.!No!such!certificate!shall!be!valid,!however,!in!any!event!after!the!first! day!of!July!of!the!year!following!the!issuing!of!such!certificate.!Renewal!certificates!may!be!issued!upon!the!application!of!the! company.! ! Any!person!who!for*compensation!solicits!or!obtains!insurance!on!behalf!of!any!insurance!company,!or!transmits!for!a!person! other! than! himself! an! application! for! a! policy! of! insurance! to! or! from! such! company! or! offers! or! assumes! to! act! in! the! negotiating!of!such!insurance,!shall!be!an!insurance*agent*within*the*intent*of*this*section,*and!shall!thereby!become!liable!to!all! the!duties,!requirements,!liabilities,!and!penalties!to!which!an!agent!of!such!company!is!subject.! ! Any! person! or! company! violating! the! provisions! of! this! section! shall! be! fined! in! the! sum! of! five! hundred! pesos.! On! the! conviction!of!any!person!acting!as!agent,!subHagent,!or!broker,!of!the!commission!of!any!offense!connected!with!the!business!of! insurance,! the! Insurance! Commissioner! shall! immediately! revoke! the! certificate! of! authority! issued! to! him! and! no! such! certificate!shall!thereafter!be!issued!to!such!convicted!person.! The!main!issue!raised!is!whether!or!not!a!person!can!be!convicted!of!having!violated!the!first!paragraph!of!Section!189!of!the!Insurance!Act!without! reference!to!the!second!paragraph!of!the!same!section.!In!other!words,!it!is!necessary!to!determine!whether!or!not!the!agent!mentioned!in!the! first!paragraph!of!the!aforesaid!section!is!governed!by!the!definition!of!an!insurance!agent!found!on!its!second!paragraph.! ! A!careful!perusal!of!the!aboveHquoted!provision!shows!that!the!first!paragraph!thereof!prohibits!a!person!from!acting!as!agent,!subHagent!or!broker! in! the! solicitation! or! procurement! of! applications! for! insurance! without! first! procuring! a! certificate! of! authority! so! to! act! from! the! Insurance! Commissioner,! while! its! second! paragraph! defines! who! is! an! insurance! agent! within! the! intent! of! this! section! and,! finally,! the! third! paragraph! thereof!prescribes!the!penalty!to!be!imposed!for!its!violation.! ! The! respondent! appellate! court! seems! to! imply! that! the! definition! of! an! insurance! agent! under! the! second! paragraph! of! Section! 189! is! not! applicable! to! the! insurance! agent! mentioned! in! the! first! paragraph.! Parenthetically,! the! respondent! court! concludes! that! under! the! second! paragraph!of!Section!189,!a!person!is!an!insurance!agent!if%he%solicits%and%obtains%an%insurance%for%compensation,!but,!in!its!first!paragraph,!there! is!no!necessity!that!a!person!solicits!an!insurance!for!compensation!in!order!to!be!called!an!insurance!agent.! % DICTIONARY:% Applying!the!definition!of!an!insurance!agent!in!the!second!paragraph!to!the!agent!mentioned!in!the!first!and!second!paragraphs! would!give!harmony!to!the!aforesaid!three!paragraphs!of!Section!189.!Legislative!intent!must!be!ascertained!from!a!consideration!of!the! STATUTE% AS%A%WHOLE.!The!particular!words,!clauses!and!phrases!should!not!be!studied!as!detached!and!isolated!expressions,!but!the!whole!and!every!part! of! the! statute! must! be! considered! in! fixing! the! meaning! of! any! of! its! parts! and! in! order! to! produce! harmonious! whole.!A! statute! must! be! so! construed!as!to!harmonize!and!give!effect!to!all!its!provisions!whenever!possible.!The! MEANING%OF%THE%LAW,!it!must!be!borne!in!mind,!is!not!to! be!extracted!from!any!single!part,!portion!or!section!or!from!isolated!words!and!phrases,!clauses!or!sentences!but!from!a!general!consideration!or! % view!of!the!act!as!a!whole. Every%part%of%the%statute%must%be%interpreted%with%reference%to%the%context.%This%means%that%every%part%of%the%statute% must% be% considered% together% with% the% other% parts,% and% kept% subservient% to% the% general% intent% of% the% whole% enactment,% not% separately% and% independently.!More! importantly,! the! doctrine! of! associated! words! (Noscitur! a! Sociis)! provides! that! where! a! particular! word! or! phrase! in! a! statement!is!ambiguous!in!itself!or!is!equally!susceptible!of!various!meanings,!its!true!meaning!may!be!made!clear!and!specific!by!considering!the! company!in!which!it!is!found!or!with!which!it!is!associated! ! Since!petitioner!did!not!receive!any!compensation!in!the!act,!she!did!not!violate!Section!189!of!the!Insurance!Act.!

7.

GR%163988% NUEZ%vs.%GSIS!

! Petitioners! are! the! heirs! of! Leonilo! S.! Nuez! (Leonilo)! who,!! during! his! lifetime,! obtained! three! loans! from! the! GSIS! Family! Bank,! formerly! ComSavings!Bank!which!in!turn!was!formerly!known!as!Royal!Savings!and!Loan!Association!(the!bank).! !!! Loan! Date! Amount! Maturity! Titled! subject! of!! Contracted! the! Real! Estate! Mortgages!! First!Loan! April!6,!1976! !!!!P!!55,900.00! June!30,!1978! NTH!139575HA! Second!Loan! July!7,!1976! !!!!P127,000.00! June!30,!1978! NTH143002;! NTH 143003;! NTH 139575! Third! Loan! July!7,!1976! !!!!P105,900.00! June!30,!1978! NTH139575HA! (amended! the! first!loan)! Fourth!Loan! June!30,!1978! !P1,539,135.00! December! 27,! NTH145734;! 1978! NTH143001;! NTH143004;! NTH143005;! NTH143006;! NTH143007.! !! !!!!!!!!!! More! than!nineteen% (19)% years% after% Leonilos% June% 30,% 1978% Promissory% Note% matured!or! on!December! 11,! 1997,! the! bank! undertook! to! ! ! extra!judicially!foreclose the!properties.!!Officio!Sheriff!of!issued!a!Notice!of!ExtraHjudicial!Sale setting!the!sale!of!the!properties!involved!at!public! ! auction!on!January!9,!1998. !! The!auction!took!place!as!scheduled,!with!the!bank!as!the!highest!and!only!bidder!A!Certificate!of!Sale!was!thus!issued!in!favor!of!the! bank.! !!! Leonilo!later!filed!for!Annulment!of!Extrajudicial!Foreclosure!Sale,!Reconveyance!and!Cancellation!of!Encumbrances.! ! [13] [14] Invoking! prescription,! he! citing! Articles! 1142 !and! 1144 !of! the! Civil! Code,! that! when! the! bank! filed! the! Petitions! for! Extrajudicial! Foreclosure!of!Mortgage,!Leonilo!concluded!that!it!no!longer!had!any!right!as!prescription!had!set!in.!! ! The! bank! filed! a! motion! for! reconsideration! on! September! 20,! 2002,! the! last! of! the! 15Hday! period! within! which! it! could! interpose! an! ! appeal,!but!it!did!not!comply!with!the!provision!of!Section!4,!Rule!15 of!the!Rules!of!Court!on!notice!of!hearing,!prompting!herein!petitioners!to!file! a!Motion!to!Strike!Out!Motion!for!Reconsideration!with!Motion!for!the!issuance!of!a!writ!of!execution.! ! !LAWS%TALKED%ABOUT:% Section%4,%Rule%15%Hearing*of*motion.*!Except!for!motions!which!the!court!may!act!upon!without!prejudicing!the!rightd!of!the!adverse!party,!every! written!motion!shall!be!set!for!hearing!by!the!applicant.! ! Every!written!motion!required!to!be!heard!and!the!notice!of!the!hearing!thereof!shall!be!served!in!such!a!manner!as!to!ensure!its!receipt! by!the!other!party!at!least!3!days!before!the!date!of!the!hearing,!unless!the!court!fo!good!cause!sets!the!hearing!on!shorter!notice.! !! !!!!!!!!!!!!Petitioners! and! counsel! confuse! their! petition! as! one! Petition! for! Review! under! Rule! 45!with! a! Petition! for! Certiorari! under! Rule! 65.! The! distinctions!between!Rules!45!and!65!are!far!and!wide.! % Rule%45%Section%1.%Filing*of*petition*with*SC.!!A!party!desiring!to!appeal!by!certiorari!from!a!judgement!or!final!order!or!resolution!of!the!Court!of! Appeals,! the! Sandiganbayan,! the! Regional! Trial! Court! or! other! courts! whenever! authorized! by! law,! may! file! with! the! SC! a! verified! petition! for! review!on!certiorari.!!He!petition!shall!raise!only!questions!of!law!which!must!be!distinctly!set!forth.! ! Rule%65%Section%1.% Petition*for*certiorari,!When!any!tribunal,!board!or!officer!exercising!judicial!or!quasiHjudicial!functions!has!acted!without!or!in! excess!of!its!or!his!jurisdiction,!or!with!grave!abuse!of!discretion!amounting!to!lack!or!excess!of!jurisdiction,!and!there!is!no!appeal,!or!any!plain,! speedy,!and!adequate!remedy!in!the!ordinary!course!of!law,!a!person!aggrieved!thereby!may!file!a!verified!petition!in!the!proper!court,!alleging! the! facts! with! certainty! and! praying! that! judgement! be! rendered! annulling! or! modifying! the! proceedings! of! such! tribunal,! board! or! officer! and! granting!such!incidental!reliefs!as!law!and!justice!may!require.! ! In!justifying!its!failure!to!file!a!collection!suit,!the!bank!contended!that!it!would!have!amounted!to!a!waiver!of!its!right!to!foreclose.!!But!if!early!on! it!opted!to!foreclose!the!mortgages,!why!it!waited!until!1997!and!1999,!more!than!nineteen!years!after!the!right!to!do!so!arose! ! The!bank!argues!that!what!applies!is!Art!1141!and!not!1142!but!the!court!said!the! STRATEGIC%LOCATION!of!Art!1142!being!after!Art!1141!which! speaks!of!real!actions!indicates!that!it!is!an!exception!to!the!rule.! !

! ! %

ART!1141!of!the!Civil!Code.!Real!actions!over!immovables!prescribe!after!30!years.! ART!1142!of!the!Civil!Code.!A!mortgage!action!prescribes!after!10!years.! 8. GR%L'34964! CHINA%BANKING%CORPORATION%and%TAN%KIM%LIONG%vs!ORTEGA%

! The!only!issue!in!this!petition!for!certiorari!to!review!the!orders!on!whether!or!not!a!banking!institution!may!validly!refuse!to!comply!with!a!court! process!garnishing!the!bank!deposit!of!a!judgment!debtor,!by!invoking!the!provisions!of!Republic!Act!No.!1405.! The!pertinent!provisions!of!Republic!Act!No.!1405!relied!upon!by!the!petitioners!reads:! Sec.! 2.! All! deposits! of! whatever! nature! with! banks! or! banking! institutions! in! the! Philippines! including! investments! in! bonds! issued! by! the! Government! of! the! Philippines,! its! political! subdivisions! and! its! instrumentalities,! are! hereby! considered! as! of! absolutely!confidential!nature!and!may!not!be!examined,!inquired!or!looked!into!by!any!person,!government!official,!bureau!or! office,!except!upon!written!permission!of!the!depositor,!or!in!cases!of!impeachment,!or!upon!order!of!a!competent!court!in! cases! of! bribery! or! dereliction! of! duty! of! public! officials,! or! in! cases! where! the! money! deposited! or! invested! is! the! subject! matter!of!the!litigation.! Sec! 3.! It! shall! be! unlawful! for! any! official! or! employee! of! a! banking! institution! to! disclose! to! any! person! other! than! those! mentioned!in!Section!two!hereof!any!information!concerning!said!deposits.! Sec.!5.!Any!violation!of!this!law!will!subject!offender!upon!conviction,!to!an!imprisonment!of!not!more!than!five!years!or!a!fine! of!not!more!than!twenty!thousand!pesos!or!both,!in!the!discretion!of!the!court.! The!petitioners!argue!that!the!disclosure!of!the!information!required!by!the!court!does!not!fall!within!any!of!the!four!(4)!exceptions!enumerated!in! Section!2,!and!that!if!the!questioned!orders!are!complied!with!Tan!Kim!Liong!may!be!criminally!liable!under!Section!5!and!the!bank!exposed!to!a! possible!damage!suit!by!B!&!B!Forest!Development!Corporation.!! The!lower!court!did!not!order!an!examination!of!or!inquiry!into!the!deposit!of!B!&!B!Forest!Development!Corporation,!as!contemplated!in!the!law.! It!merely!required!Tan!Kim!Liong!to!inform!the!court!whether!or!not!the!defendant!B!&!B!Forest!Development!Corporation!had!a!deposit!in!the! China! Banking! Corporation! only! for! purposes! of! the! garnishment! issued! by! it,! so! that! the! bank! would! hold! the! same! intact! and! not! allow! any! withdrawal!until!further!order.!It!will!be!noted!from!the!DISCUSSION!(CONVERSATION)!of!the!conference!committee!report!(between!Mr.!Ramos! and!Mr.!Marcos,!and,!Mr.!Ramos!and!Mr.!Macapagal)!on!Senate!Bill!No.!351!and!House!Bill!No.!3977,!which!later!became!Republic!Act!1405,!that!it! was!not!the!intention!of!the!lawmakers!to!place!bank!deposits!beyond!the!reach!of!execution!to!satisfy!a!final!judgment.!! It!is!sufficiently!clear!from!the!foregoing!discussion!of!the!conference!committee!report!of!the!two!houses!of!Congress!that!the!prohibition!against! examination!of!or!inquiry!into!a!bank!deposit!under!Republic!Act!1405!does!not!preclude!its!being!garnished!to!insure!satisfaction!of!a!judgment.! Indeed!there!is!no!real!inquiry!in!such!a!case,!and!if!the!existence!of!the!deposit!is!disclosed!the!disclosure!is!purely!incidental!to!the!execution! process.!It!is!hard!to!conceive!that!it!was!ever!within!the!intention!of!Congress!to!enable!debtors!to!evade!payment!of!their!just!debts,!even!if! ordered!by!the!Court,!through!the!expedient!of!converting!their!assets!into!cash!and!depositing!the!same!in!a!bank.! 9. GR%L'37867% PVA%vs.%Bautista%

This!is!a!petition!to!review!on!certiorari!the!decision!of!respondent!for!mandamus!filed!by!Calixto!V.!Gasilao!against!the!Board!of!Administrators!of! the!Philippine!Veterans!Administration.! Gasilao,!was!a!veteran!in!good!standing!during!World!War!II.!! On!October!19,!1955,!he!filed!a!claim!for!disability!pension!under!Section!9,!Republic!Act!No.!65.!The!claim!was!disapproved!by! the!PVA! Republic!Act!65!was!amended!by!Republic!Act!1362!on!June!22,!1955!by!including!as!part!of!the!benefit!of!P50.00,!P10.00!a! month! for! each! of! the! unmarried! minor! children! below! 18! of! the! veteran! Republic! Act! No.! 1362! was! implemented! by! the! respondents!only!on!July!1,!1955.!! On!June!18,!1957,!Section!9!of!Republic!Act!No.!65!was!further!amended!by!Republic!Act!1920!increasing!the!life!pension!of!the! veteran!to!P100.00!a!month!and!maintaining!the!P10.00!a!month!each!for!the!unmarried!minor!children!below!18.!

August! 8,! 1968,! the! claim! of! the! petitioner! which! was! disapproved! in! December,! 1955! was! reconsidered! and! his! claim! was! finally!approved,!he!requested!respondents!that!his!claim!be!made!retroactive!as!of!the!date!when!his!original!application!was! flied!or!disapproved!in!1955.!Respondents!did!not!act!on!his!request.! As!it!is!generally!known,!the!purpose!of!Congress!in!granting!veteran!pensions!is!to!compensate!ea!class!of!men!who!suffered!in!the!service!for!the! hardships! they! endured! and! the!dangers! they! encountered,! and! more! particularly,! those! who!have! become! incapacitated! for! work! owing!to! sickness,! disease! or! injuries! sustained! while! in!line! of! duty.! A!veteran! pension! law! is,! therefore,! a! governmental! expression! of! gratitude! to! and! recognition!of!those!who!rendered!service!for!the!country,!especially!during!times!of!war!or!revolution,!by!extending!to!them!regular!monetary!aid.! For! this! reason,! it!is! the! general! rule! that! a!liberal! construction! is! given! to! pension! statutes! in!favor! of! those! entitled! to! pension.! Courts! tend! to! favor!the!pensioner,!but!such!constructional!preference!is!to!be!considered!with!other!guides!to!interpretation,!and!a!construction!of!pension!laws! must! depend! on! its! own! particular! language.! In! the! present! case,! Republic! Act!65! is! a! veteran! pension! law!which! must! be! accorded! a! liberal! construction!and!interpretation!in!order!to!favor!those!entitled!to!rights,!privileges,!and!benefits!granted!there!under,!among!which!are!the!right!to! resume!old!positions!in!government,!educational!benefits,!the!privilege!to!take!promotion!examinations,!a!life!pension!for!the!incapacited,!pension! for! widow! and! children,! and! hospitalization! and! medical! benefits.! Upholding! the!Board! that! the! pension! awards! are! made! effective! only! upon! approval! of! the! application,! this! would! be!dependent! upon! the! discretion! of! the! Board! which!had! been! abused! in! this!case! through! inaction! extending!for!12years.!Such!stand,!therefore!does!not!appear!to!be,!or!simply!is!not,!in!consonance!with!the!spirit!and!intent!of!the!law.!Gasilaos! claim!was!sustained.!The!Supreme!Court!modified!the!judgment!of!the!court!a!quo,!ordering!the!Board!of!Administrators!of!the!Philippine!Veterans! Administration!(now!the!Philippine!Veterans!Affairs!Office)!to!make!Gasilaos!pension!effective!18!December!1955!at!the!rate!of!P50.00!per!month! plus!P10.00!per!month!for!each!of!his!then!unmarried!minor!children!below!18,!and!the!former!amount!increased!to!P100.00!from!22June!1957!to! 7!August!1968;!and!declaring!the!differentials!in!pension!to!which!said!Gasilao,!his!wife!and!his!unmarried!minor!children!below!18!are!entitled!for! the!period!from!22!June!1969!to!14January!1972!by!virtue!of!Republic!Act!5753!subject!to!the!availability!of!Government!funds!appropriated!for! the!purpose.! 10. GR%137489% CDA%VS%DOLEFIL! Petitioner!CDA!claims!that!it!is!vested!with!quasiHjudicial!authority!to!adjudicate!cooperative!disputes!in!view!of!its!powers,!functions!and! responsibilities!under!Section!3!of!Republic!Act!No.!6939.!The!quasiHjudicial!nature!of!its!powers!and!functions!was!confirmed!by!the!Department!of! Justice,!through!the!then!Acting!Secretary!of!Justice!Demetrio!G.!Demetria.! LAWS%TALKED%ABOUT:% Petitioner!CDA!claims!that!it!is!vested!with!quasiHjudicial!authority!to!adjudicate!cooperative!disputes!in!view!of!its!powers,!functions!and! responsibilities!under!Section!3!of!Republic!Act!No.!6939! Section!3!of!R.A.!No.!6939!enumerates!the!powers,!functions!and!responsibilities!of!the!CDA,!thus:! SEC.!3.!Powers,*Functions*and*Responsibilities.The!Authority!shall!have!the!following!powers,!functions!and!responsibilities:! (a)!Formulate,!adopt!and!implement!integrated!and!comprehensive!plans!and!programs!on!cooperative!development!consistent!with!the! national!policy!on!cooperatives!and!the!overall!socioHeconomic!development!plan!of!the!Government;! (b)!Develop!and!conduct!management!and!training!programs!upon!request!of!cooperatives!that!will!provide!members!of!cooperatives! with!the!entrepreneurial!capabilities,!managerial!expertise,!and!technical!skills!required!for!the!efficient!operation!of!their!cooperatives! and!inculcate!in!them!the!true!spirit!of!cooperativism!and!provide,!when!necessary,!technical!and!professional!assistance!to!ensure!the! viability!and!growth!of!cooperatives!with!special!concern!for!agrarian!reform,!fishery!and!economically!depressed!sectors;! (c)!Support!the!voluntary!organization!and!consensual!development!of!activities!that!promote!cooperative!movements!and!provide! assistance!to!wards!upgrading!managerial!and!technical!expertise!upon!request!of!the!cooperatives!concerned;! (d)!Coordinate!the!effects!of!the!local!government!units!and!the!private!sector!in!the!promotion,!organization,!and!development!of! cooperatives;! (e)!Register!all!cooperatives!and!their!federations!and!unions,!including!their!division,!merger,!consolidation,!dissolution!or!liquidation.!It! shall!also!register!the!transfer!of!all!or!substantially!all!of!their!assets!and!liabilities!and!such!other!matters!as!may!be!required!by!the! Authority;! (f)!Require!all!cooperatives,!their!federations!and!unions!to!submit!their!annual!financial!statements,!duly!audited!by!certified!public! accountants,!and!general!information!sheets;! (g)!Order!the!cancellation!after!due!notice!and!hearing!of!the!cooperatives!certificate!of!registration!for!nonHcompliance!with! administrative!requirements!and!in!cases!of!voluntary!dissolution;! (h)!Assist!cooperatives!in!arranging!for!financial!and!other!forms!of!assistance!under!such!terms!and!conditions!as!are!calculated!to! strengthen!their!viability!and!autonomy;! (i)!Establish!extension!offices!as!may!be!necessary!and!financially!viable!to!implement!this!Act.!Initially,!there!shall!be!extension!offices!in! the!Cities!of!Dagupan,!Manila,!Naga,!Iloilo,!Cebu,!Cagayan!de!Oro!and!Davao;! (j)!Impose!and!collect!reasonable!fees!and!charges!in!connection!with!the!registration!of!cooperatives;! (k)!Administer!all!grants!and!donations!coursed!through!the!Government!for!cooperative!development,!without!prejudice!to!the!right!of! cooperatives!to!directly!receive!and!administer!such!grants!and!donations!upon!agreement!with!the!grantors!and!donors!thereof;! (l)!Formulate!and!adopt!continuing!policy!initiatives!consultation!with!the!cooperative!sector!through!public!hearing;! (m)!Adopt!rules!and!regulations!for!the!conduct!of!its!internal!operations;!

(n)!Submit!an!annual!report!to!the!President!and!Congress!on!the!state!of!the!cooperative!movement;! (o)!Exercise!such!other!functions!as!may!be!necessary!to!implement!the!provisions!of!the!cooperative!laws!and,!in!the!performance! thereof,!the!Authority!may!summarily!punish!for!direct!contempt!any!person!guilty!of!misconduct!in!the!presence!of!the!Authority!which! seriously!interrupts!any!hearing!or!inquiry!with!a!fine!of!not!more!than!five!hundred!pesos!(P500.00)!or!imprisonment!of!not!more!than! ten!(10)!days,!or!both.!Acts!constituting!indirect!contempt!as!defined!under!Rule!71!of!the!Rules!of!Court!shall!be!punished!in!accordance! with!the!said!Rule.! Extrinsic%Aid,%OPINION:!! Applying!the!foregoing,!the!express!powers!of!the!CDA!to!cancel!certificates!of!registration!of!cooperatives!for!nonHcompliance!with! administrative!requirements!or!in!cases!of!voluntary!dissolution!under!Section!3(g),!and!to!mandate!and!conciliate!disputes!within!a! cooperative!or!between!cooperatives!under!Section!8!of!R.A.!No.!6939,!may!be!deemed!quasiHjudicial!in!nature.! The!reason!is!that!!in!the!performance!of!its!functions!such!as!cancellation!of!certificate!of!registration,!it!is!necessary!to!establish!nonH compliance!or!violation!of!administrative!requirement.!To!do!so,!there!arises!an!indispensable!need!to!hold!hearings,!investigate!or! ascertain!facts!that!possibly!constitute!nonHcompliance!or!violation!and,!based!on!the!facts!investigated!or!ascertained,!it!becomes! incumbent!upon!the!CDA!to!use!its!official!discretion!whether!or!not!to!cancel!a!cooperatives!certificate!of!registration,!thus,!clearly! revealing!the!quasiHjudicial!nature!of!the!said!function.!When!the!CDA!acts!as!a!conciliatory!body!pursuant!to!Section!8!of!R.A.!No.!6939,! it!in!effect!performs!the!functions!of!an!arbitrator.!Arbitrators!are!by!the!nature!of!their!functions!act!in!quasiHjudicial!capacity!xxx.! The!quasiHjudicial!nature!of!the!foregoing!functions!is!bolstered!by!the!provisions!of!Sections!3(o)!of!R.A.!No.!6939!which!grants!CDA!on! the!exercise!of!other!functions!as!may!be!necessary!to!implement!the!provisions!of!cooperative!laws,!the!power!to!summarily!punish!for! direct!contempt!any!person!guilty!of!misconduct!in!the!presence!thereof!who!seriously!interrupts!any!hearing!or!inquiry!with!a!fine!or! imprisonment!prescribed!therein,!a!power!usually!granted!to!make!effective!the!exercise!of!quasiHjudicial!functions.! It!is!a!fundamental!rule!in!statutory!construction!that!when!the!law!speaks!in!clear!and!categorical!language,!there!is!no!room!for!interpretation,! 32 vacillation!or!equivocation!!there!is!only!room!for!application. !It!can!be!gleaned!from!the!aboveHquoted!provision!of!R.A.!No.!6939!that!the! authority!of!the!CDA!is!to!discharge!purely!administrative!functions!which!consist!of!policyHmaking,!registration,!fiscal!and!technical!assistance!to! cooperatives!and!implementation!of!cooperative!laws.!Nowhere!in!the!said!law!can!it!be!found!any!express!grant!to!the!CDA!of!authority!to! adjudicate!cooperative!disputes.! Extrinsic%AID,%OPINION%and%PAST%RULING:%% The!Office!of!the!President,!through!the!then%Deputy%Executive%Secretary,%Hon.%Leonardo%A.%Quisumbing,!espoused!the!same!view!in!the!case! of!Alberto*Ang,*et*al.*v.*The*Board*of*Directors,*Metro*Valenzuela*Transport*Services*Cooperative,*Inc.,when!it!declared!and!ruled!that:! Concededly,!Section!3(o)!of!R.A.!No.!6939!and!Article!35(4)!of!R.A.!6938,!may!not!be!relied!upon!by!the!CDA!as!authority!to!resolve! internal!conflicts!of!cooperatives,!they!being!general!provisions.!Nevertheless,!this!does!not!preclude!the!CDA!from!resolving!the!instant! case.!The!assumption!of!jurisdiction!by!the!CDA!on!matters!which!partake!of!cooperative!disputes!is!a!logical,!necessary!and!direct! consequence!of!its!authority!to!register!cooperatives.!To!our!mind,!the!grant!of!this!power!impliedly!carries!with!it!the!visitorial!power!to! entertain!cooperative!conflicts,!a!lesser!power!compared!to!its!authority!to!cancel!registration!certificates!when,!in!its!opinion,!the! cooperative!fails!to!comply!with!some!administrative!requirements!(Sec.!2(g),!R.A.!No.!6939).!Evidently,!respondentsHappellants!claim! that!the!CDA!is!limited!to!conciliation!and!mediation!proceedings!is!bereft!of!legal!basis! The!instant!petition!for!review!on!certiorari!suffers!from!a!basic!infirmity!for!lack!of!the!requisite!imprimatur!from!the!Office!of!the!Solicitor! General.!The!general!rule!is!that!only!the!Solicitor!General!can!bring!or!defend!actions!on!behalf!of!the!Republic!of!the!Philippines!and!that!actions! filed!in!the!name!of!the!Republic,!or!its!agencies!and!instrumentalities!for!that!matter,!if!not!initiated!by!the!Solicitor!General,!will!be!summarily! dismissed.! The!authority!of!the!Office!of!the!Solicitor!General!to!represent!the!Republic!of!the!Philippines,!its!agencies!and!instrumentalities,!is!embodied! under!Section!35(1),!Chapter!12,!Title!III,!Book!IV!of!the!Administrative!Code!of!1987!which!provides!that:! SEC.!35.!Powers*and*Functions.The!Office!of!the!Solicitor!General!shall!represent!the!Government!of!the!Philippines,!its!agencies!and! instrumentalities!and!its!officials!and!agents!in!any!litigation,!proceeding,!investigation!or!matter!requiring!the!services!of!lawyers.!When! authorized!by!the!President!or!head!of!the!office!concerned,!it!shall!also!represent!government!owned!or!controlled!corporations.!The! Office!of!the!Solicitor!General!shall!constitute!the!law!office!of!the!Government!and,!as!such,!shall!discharge!duties!requiring!the!services! of!lawyers.!It!shall!have!the!following!specific!powers!and!functions:! (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,!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.!

It!is!patent!that!the!INTENT%OF%THE%LAWMAKER!was!to!give!the!designated!official,!the!Solicitor!General,!in!this!case,!the!unequivocal! mandate!to!appear!for!the!government!in!legal!proceedings.!! The!Court!is!firmly!convinced!that!considering!the!SPIRIT%AND%THE%LETTER%OF%THE%LAW,!there!can!be!no!other!logical!interpretation!of! Sec.!35!of!the!Administrative!Code!than!that!it!is,!indeed,!mandatory!upon!the!OSG!to!"represent!the!Government!of!the!Philippines,!its! agencies!and!instrumentalities!and!its!officials!and!agents!in!any!litigation,!proceeding,!investigation!or!matter!requiring!the!services!of!a! lawyer."! As!an!exception!to!the!general!rule,!the!Solicitor!General,!in!providing!legal!representation!for!the!government,!is!empowered!under!Section!35(8),! Chapter!12,!Title!III,!Book!IV!of!the!Administrative!Code!of!1987!to!"deputize!legal!officers!of!government!departments,!bureaus,!agencies!and! offices!to!assist!the!Solicitor!General!and!appear!or!represent!the!Government!in!cases!involving!their!respective!offices,!brought!before!the!courts! and!exercise!supervision!and!control!over!such!legal!officers!with!respect!to!such!cases."! !

11. GR%74851% RCBC%vs.%IAC%AND%BF%HOMES% Petitioner! RCBC! is! a! mortgagorHcreditor! of! the! party! respondent! BF! Homes.! BF! Homes,! being! a! distressed! firm,! filed! before! the! Securities! and! Exchange! Commission! a! Petition! for! Rehabilitation! and! for! Declaration! of! Suspension! of! Payments.! Consequently,! RCBC! requested! the! sheriff! of! Rizal! to! levy! on! execution! the! properties! of! party! respondent,! and! consequently! obtained! favorable! judgment.! RCBC! being! the! highest! bidder! during!the!public!auction!is!now!seeking!for!the!transfer!certificate!of!titles!from!the!Register!of!Deeds!issued!in!its!name.!It!is!worthy!to!note!that!it! was!on!October!26,!1984!that!RCBC!obtained!favor!over!the!execution!of!the!respondents!properties,!and!it!was!only!on!March!18,!1985!that!a! Management!Committee!was!organized!by!the!SEC!for!BF!Homes.! ! Whether!or!not!the!Court!may!depart!from!the!words!of!the!law!which!clearly!provides!that!a!creditor!may!levy!execution!on!a!firms!properties! when!such!execution!precedes!SECs!organization!of!a!Management!Committee!to!act!as!its!receiver.! ! LAWS%TALKED%ABOUT:% The!law!on!the!matter,!Paragraph!(c),!Section!6!of!Presidential!Decree!902HA,!provides:! ! Sec.!6.!In!order!to!effectively!exercise!such!jurisdiction,!the!Commission!shall!posses!the!following!powers:! c)!To!appoint!one!or!more!receivers!of!the!property,!real!and!personal,!which!is!the!subject!of!the!action!pending!before!the!Commission! in! accordance! with! the! pertinent! provisions! of! the! Rules! of! Court! in! such! other! cases! whenever! necessary! to! preserve! the! rights! of! the! parties! litigants! to! and/or! protect! the! interest! of! the! investing! public! and! creditors;!Provided,* however,! that! the! Commission! may,! in! appropriate!cases,!appoint!a!rehabilitation!receiver!of!corporations,!partnerships!or!other!associations!not!supervised!or!regulated!by!other! government! agencies! who! shall! have,! in! addition! to! the! powers! of! a! regular! receiver! under! the! provisions! of! the! Rules! of! Court,! such! functions!and!powers!as!are!provided!for!in!the!succeeding!paragraph!! (d)!hereof:!Provided,*finally,!That*upon*appointment*of*a*management*committee*rehabilitation*receiver,*board*or*body,*pursuant*to*this* Decree,!all! actions! for! claims! against! corporations,! partnerships! or! associations! under! management! or! receivership,! pending! before! any! court,!tribunal,!board!or!body!shall!be!suspended!accordingly.! ! PD! 209HA! states! that! suspension! of! claims! against! a! corporation! under! rehabilitation! is! counted! or! figured! up! only! upon! the! appointment! of! a! management!committee!or!a!rehabilitation!receiver.!The!holding!that!suspension!of!actions!for!claims!against!a!corporation!under!rehabilitation! takes! effect! as! soon! as! the! application! or! a! petition! for! rehabilitation! is! filed! with! the! SEC! ! may,! to! some,! be! more! logical! and! wise! but! unfortunately,! such! is! incongruent! with! the! clear! language! of! the! law.! Suspension! of! actions! for! claims! commences! only! from! the! time! a! management!committee!or!receiver!is!appointed!by!the!SEC.!Petitioner!RCBC!rightfully!moved!for!the!extrajudicial!foreclosure!of!its!mortgage!on! October!26,!1984!because!a!management!committee!was!not!appointed!by!the!SEC!until!March!18,!1985.! ! Reasoning:! No! matter! how! practical! and! noble! a! reason! would! be,! in! order! to! depart! from! the! words! of! the! law! stated! in! clear! and! unambiguous! manner,! would!be!to!encroach!upon!legislative!prerogative!to!define!the!wisdom!of!the!law.!Such!is!plainly!judicial!legislation.! ! Policy:! Paragraph!C!Section!6!of!PD!209HA!states!that!upon!appointment!of!a!management!committee!rehabilitation!receiver,!board!or!body,!pursuant!to! this!Decree,!all!actions!for!claims!against!corporations,!partnerships!or!associations!under!management!or!receivership,!pending!before!any!court,! tribunal,!board!or!body!shall!be!suspended!accordingly! ! It!bears!stressing!that!the!first!and!fundamental!duty!of!the!Court!is!to!apply!the!law.!When!the!law!is!clear!and!free!from!any!doubt!or!ambiguity,! there!is!no!room!for!construction!or!interpretation.!As!has!been!our!consistent!ruling,!where!the!law!speaks!in!clear!and!categorical!language,!there! is!no!occasion!for!interpretation;!there!is!only!room!for!application.!Where!the!law!is!clear!and!unambiguous,!it!must!be!taken!to!mean!exactly! what!it!says!and!the!court!has!no!choice!but!to!see!to!it!that!its!mandate!is.! Only!when!the!law!is!ambiguous!or!of!doubtful!meaning!may!the!court!interpret!or!construe!its!true!intent.!Ambiguity!is!a!condition!of!admitting! two!or!more!meanings,!of!being!understood!in!more!than!one!way,!or!of!referring!to!two!or!more!things!at!the!same!time.!A!statute!is!ambiguous!if! it!is!admissible!of!two!or!more!possible!meanings,!in!which!case,!the!Court!is!called!upon!to!exercise!one!of!its!judicial!functions,!which!is!to! interpret!the!law!according!to!its!true!intent.! 12. 345%SCRA%49% CAGUIOA%vs.%LAVIA% A!judge!is!presumed!to!act!with!regularity!and!good!faith!in!the!performance!of!judicial!functions.!!However,!a!blatant!disregard!of!the!clear! and!unmistakable!provisions!of!a!statute,!as!well!as!Supreme!Court!circulars!enjoining!strict!compliance!therewith,!upends!this!presumption!and! subjects!the!magistrate!to!administrative!sanctions.!!In!the!present!case,!the!Writ!issued!by!respondent!judge!impeded!the!implementation!of!a! government!infrastructure!project!and!thus!constituted!a!palpable!transgression!of!Presidential!Decree!(PD)!1818!and!Supreme!Court!Circular!Nos.! 13H93,!68H94!and!07H99.! LAWS%TALKED%ABOUT:% The!administrative!liability!of!respondent!judge!proceeds!from!his!failure!to!observe!a!simple,!comprehensible!and!unequivocal!mandate!of! PD!1818!prohibiting!the!issuance!of!injunctive!writs!relative!to!government!infrastructure!projects.!!The!pertinent!provision!of!the!law!clearly!and! categorically!states:!

"SECTION!1.!!No!court!in!the!Philippines!shall!have!jurisdiction!to!issue!any!restraining!order,!preliminary!injunction,!or!preliminary!mandatory! injunction!in!any!case,!dispute!or!controversy!involving!an!infrastructure!project,!or!a!mining,!fishery,!forest!or!other!natural!resource!development! project!of!the!government,!or!any!public!utility!operated!by!the!government,!including!among!others!public!utilities!for!the!transport!of!the!goods! or!commodities,!stevedoring!and!arrastre!contracts,!to!prohibit!any!person!or!persons,!entity!or!government!official!from!proceeding!with,!or! continuing!the!execution!or!implementation!of!any!such!project,!or!the!operation!of!such!public!utility,!or!pursuing!any!lawful!activity!necessary!for! such!execution,!implementation!or!operation."! % Extrinsic!Aid,!RECOMMENDATION%OF%THE%COURT%ADMISTRATOR:! ! ,! In!Garcia*v.*Burgos the!prohibitory!character!of!PD!1818!was!reiterated!by!the!Court!in!these!words:% Section!1!of!PD!1818!distinctly!provides!that![n]o!court!in!the!Philippines!shall!have!jurisdiction!to!issue!any!restraining!order,!preliminary! injunction,!or!preliminary!mandatory!injunction!in!any!case,!dispute,!or!controversy!involving!an!infrastructure!project!x!x!x!of!the!!government,!x!x! x!to!prohibit!any!person!or!persons,!entity!or!government!official!from!proceeding!with,!or!continuing!the!execution!or!implementation!of!any!such! project,!x!x!x!or!pursuing!any!lawful!activity!necessary!for!such!execution!,!implementation!or!operation.!At*the*risk*of*being*repetitious,*we*stress* that*the*foregoing*statutory*provision*expressly*deprives*courts*of*jurisdiction*to*issue*injunctive*writs*against*the*implementation*or*execution*of*an* infrastructure*project.! ! PD!1818!prohibits!a!court!from!issuing!an!injunctive!writ!to!stop!any!person,!entity!or!government!official!from!proceeding!with!or!continuing!the! [16] execution!or!implementation!of!an!infrastructure!project. !Section!1of!the!statute!clearly!states!that!an!injunction!may!not!be!issued!"to!prohibit! any!person!or!persons,!entity!or!government!official"!from!undertaking!the!protected!activities!enumerated!therein.!!The*prohibition*applies* whether*the*person*or*entity*being*enjoined*is*public*or*private*in*nature.!!Indeed,!the!law!seeks!to!prevent!the!delay!of!essential!government! projects.! By! enjoining! (1)! Tokyu! from! further! receiving! any! amount! from! MIAA! as! compensation! for! the! execution! of! a! portion! of! the! work! in! the! project! and! from! engaging! the! services! of! subcontractors! to! do! portions! of! the! same;! and! (2)! MIAA! from! directly! paying! Tokyu! the! collectible! compensation! for! the! execution! of! a! portion! of! the! project,!the* TRO* effectively* interfered* with,* impeded* and* obstructed* an* entity* directly* and* primarily*responsible*for*the*execution*of*a*government*infrastructure*project.! When%a%statute%is%clear%and%explicit,%there%is%no%need%for%any%extended%court%ratiocination%on%the%law.%There%is%no%room%for%interpretation,% vacillation%or%equivocation;%there%is%room%only%for%application.% In!resolving!matters!in!litigation,!judges!should!endeavor!assiduously!to!ascertain!the!facts!and!the!applicable!laws.!Moreover,!they!should! exhibit!more!than!just!a!cursory!acquaintance!with!statutes!and!procedural!rules.!!Also,!they!are!expected!to!keep!abreast!of!and!be!conversant! with!the!rules!and!the!circulars!which!the!Supreme!Court!has!adopted!and!which!affect!the!disposition!of!cases!before!them.! Although! judges! have! in! their! favor! the! presumption! of! regularity! and! good! faith! in! the! performance! of! their! official! functions,! a! blatant! disregard!of!the!clear!and!unmistakable!terms!of!the!law!obviates!this!presumption!and!renders!them!susceptible!to!administrative!sanctions.! ! 13. GR%L'25316%% KM/MRC%vs%MRC% % LAWS%TALKED%ABOUT:% In!this!mandamus!petition!dismissed!by!the!lower!court,!petitionerHappellant!would!seek!a!reversal!of!such!decision!relying!on!what!it!considered! to!be!a!right!granted!by!Section!62!of!the!Republic!Act!No.!2023,!more!specifically!the!first!two!paragraphs!thereof:!"...!! (1)!A!member!of!a!cooperative!may,!notwithstanding!the!provisions!of!existing!laws,!execute!an!agreement!in!favor!of!the!coHoperative! authorizing!his!employer!to!deduct!from!the!salary!or!wages!payable!to!him!by!the!employer!such!amount!as!may!be!specified!in!the! agreement!and!to!pay!the!amount!so!deducted!to!the!coHoperative!in!satisfaction!of!any!debt!or!other!demand!owing!from!the!member! to!the!coHoperative.!! ! (2)!Upon!the!exemption!of!such!agreement!the!employer!shall!if!so!required!by!the!coHoperative!by!a!request!in!writing!and!so!long!as! such!debt!or!other!demand!or!any!part!of!it!remains!unpaid,!make!the!claimant!and!remit!forth!with!the!amount!so!deducted!to!the!coH %1 operative." % ! "Then!petitioner!contends!that!under!the!above!provisions!of!Rep.!Act!2023,!the!loans!granted!by!credit!union!to!its!members!enjoy%first%priority!in! the!payroll!collection!from!the!respondent's!employees'!wages!and!salaries.!As!can!be!clearly!seen,!there!is!nothing!in!the!provision!of!Rep.!Act! 2023!hereinabove!quoted!which!provides!that!obligation!of!laborers!and!employees!payable!to!credit!unions!shall!enjoy!first!priority!in!the! deduction!from!the!employees'!wages!and!salaries.!The*only*effect*of*Rep.*Act*2023*is*to*compel*the*employer*to*deduct*from*the*salaries*or*wages* payable*to*members*of*the*employees'*cooperative*credit*unions*the*employees'*debts*to*the*union*and*to*pay*the*same*to*the*credit*union.!In!other! words,!if!Rep.!Act!2023!had!been!enacted,!the!employer!could!not!be!compelled!to!act!as!the!collecting!agent!of!the!employees'!credit!union!for! the!employees'!debt!to!his!credit!union!but!to!contend!that!the!debt!of!a!member!of!the!employees!cooperative!credit!union!as!having!first!priority! in!the!matter!of!deduction,!is!to!write!something!into!the!law!which!does!not!appear.!In*other*words,*the*mandatory*character*of*Rep.*Act*2023*is* only*to!compel!the!employer!to!make!the!deduction!of!the!employees'!debt!from!the!latter's!salary!and!turn!this!over!to!the!employees'!credit! union!but!this!mandatory!character!does!not!convert!the!credit!union's!credit!into!a!first!priority!credit.!If!the!legislative!intent!in!enacting!pars.!1! and!2!of!Sec.!62!of!Rep.!Act!2023!were!to!give!first!priority!in!the!matter!of!payments!to!the!obligations!of!employees!in!favor!of!their!credit!unions,!

then,!the!law!would!have!so!expressly!declared.!Thus,!the!express!provisions!of!the!New!Civil!Code,!Arts.!2241,!2242!and!2244!show!the!legislative! intent!on!preference!of!credits.! ! This!petition!being!one!for!mandamus!and!the!provision!of!law!relied!upon!BEING%CLEAR%ON%ITS%FACE,!it!would!appear!that!no!favorable!action!can! be!taken!on!this!appeal.!! ! The!applicable!provision!of!Republic!Act!No.!2023!quoted!earlier,!speaks!for!itself.!There!is!no!ambiguity.!As!thus!worded,!it!was!so!applied.!As!was! pointed!out!in!Gonzaga*v.*Court*of*Appeals:!"It!has!been!repeated!time!and!time!again!that.!where%the%statutory%norm%speaks%unequivocally,% there%is%nothing%for%the%courts%to%do%except%to%apply%it.%The%law,%leaving%no%doubt%as%to%the%scope%of%its%operation,%must%be%obeyed.%Our%decisions% have%consistently%born%to%that%effect.! ! According%to%former%Chief%Justice%Moran,"!only!specific!legal!rights!may!be!enforced!by!mandamus!if!they!are!clear!and!certain.!If!the!legal!rights! are!of!the!petitioner!are!not!well!defined,!clear,!and!certain,!the!petition!must!be!dismissed.!! !

14. GR%124067% SEGOVIA%vs.%The%SANDIGANBAYAN!! % The!special!civil!action!of!certiorari!and!prohibition!at!bar!seeks!nullification!of!two!(2)!Resolutions!of!the!Second!Division!of!the!Sandiganbayan! issued!in!which!petitioners!are!prosecuted!for!a!violation!of!the!AntiHGraft!and!Corrupt!Practices!Act:!Republic!Act!No.!3019,!as!amended.!The! resolutions!assailed!are:! ! 1)!that!dated!February!1,!1996,!which!ordered!petitioners'!(petitioners!Perla!Segovia,!Reynaldo!Santiago,!Winifredo!SM!Pangilinan,!as!well!as! Gilberto!Pastoral!and!Cecilia!Vales!be!charged!for!having!in!"one!way!or!the!other!extended!undue!advantage!to!Joint!Venture!through!manifest! partiality,!evident!bad!faith!and!gross!inexcusable!negligence")!and!preventive!suspension!for!ninety!(90)!days!in!accordance!with!Section!13!of!said! R.A.!3019;!and! ! 2)!that!dated!February!23,!1996,!which!denied!petitioners'!motion!for!reconsideration!of!the!suspension!order.! % LAWS%TALKED%ABOUT:% The!primary!issue!raised!is!whether!it!is!mandatory*or*discretionary!for!the!Sandiganbayan!to!place!under!preventive!suspension!public!officers! who!stand!accused!before!it,!pursuant!to!said!Section!13!of!the!law.!Section!13!reads:! Sec.!13.!Suspension*and*loss*of*benefits.!!Any!incumbent!public!officer!against!whom!any!criminal!prosecution!under!a!valid! information!under!this!Act!or!under!Title!7,!Book!II!of!the!Revised!Penal!Code!or!for!any!offense!involving!fraud!upon! government!or!public!funds!or!property,!whether!as!a!simple!or!as!a!complex!offense!in!whatever!stage!of!execution!and!mode! of!participation,!is!pending!in!court,!shall!be!suspended!from!office.!.!.!.!.! ! It!is!petitioners'!submission!that!preventive!suspension!under!this!section!"rests*in*the*sound*discretion*of*the*Sandiganbayan*despite*the*ostensibly* mandatory*Language"!of!the!statute,!and!that!that!discretion!was!gravely!abused!by!the!Sandiganbayan,!or!it!exceeded!its!jurisdiction,!when!it! decreed!their!suspension.! ! Assistant!Ombudsman!Abelardo!L.!Aportadera,!Jr.,!favorably!endorsed!the!recommendation!which!was!eventually!approved!on!December!6,!1994! by!Hon.!Conrado!M.!Vasquez,!then!the!Ombudsman.! An%information%was%accordingly%filed%with%the%Sandiganbayan!against!petitioners!Segovia,!Santiago,!and!Pangilinan,!as!well!as!Pastoral!and!Vales.! They!were!charged!with!infringement!of!Section!3!(e)!of!RA!3019:!"causing!undue!injury!to!any!party,!including!the!Government,!or!giving!any!party! any!unwarranted!benefits,!advantage!or!preference!in!the!discharge!of!his!official,!administrative!or!judicial!functions!through!manifest!partiality,! evident!bad!faith!or!gross!inexcusable!negligence."! % Extrinsic%Aid,%HISTORY:!! Republic!Act!No.!3019!was!enacted!by!Congress!more!than!37!years!ago,!on!August!17,!1960,!becoming!effective!on!the!same!date.!The!law!was! later!amended!by!Republic!Act!No.!3047,!Presidential!Decree!677!and!Presidential!Decree!No.!1288.!The!last!amendment!!to!Section!13!thereof! !was!introduced!by!Batas*Pambansa*Bilang*195,!approved!on!March!16,!1972.! % Extrinsic%Aid,%INTERPRETATION:!The!validity!of!Section!13,!R.A.!3019,!as!amended!!treating!of!the!suspension*pendente*lite!of!an!accused!public! officer!!may!no!longer!be!put!at!issue,!having!been!repeatedly!upheld!by!this!Court.!As!early!as!1984,!inBayot*v.!Sandiganbayan,!the%Court%held% that%such%suspension%was%not%penal%in%character%but%merely%a%preventive%measure%before%final%judgment;!hence,!the!suspension!of!a!public! officer!charged!with!one!of!the!crimes!listed!in!the!amending!law,!committed!before!said!amendment,!does!not!violate!the!constitutional!provision! against!an!ex*post*facto!law.!The!purpose!of!suspension!is!to!prevent!the!accused!public!officer!from!frustrating!or!hampering!his!prosecution!by! intimidating!or!influencing!witnesses!or!tampering!with!documentary!evidence,!or!from!committing!further!acts!of!malfeasance!while!in! office.!Substantially!to!the!same!effect!was!the!Court's!holding,!in!1991,!in!Gonzaga*v.*Sandiganbayan,!that!preventive!suspension!is!not!violative! of!the!Constitution!as!it!is!not!a!penalty;!and!a!person!under!preventive!suspension!remains!entitled!to!the!constitutional!presumption!of! innocence!since!his!culpability!must!still!be!established.! % It!is!mandatory!for!the!court!to!place!under!preventive!suspension!a!public!officer!accused!before!it. !Imposition!of!suspension,!however,!is%not% automatic%or%self'operative.!A%PRE'CONDITION%THEREFOR%IS%THE%EXISTENCE%OF%A%VALID%INFORMATION,%DETERMINED%AT%A%PRE'SUSPENSION% HEARING.!Such!a!hearing!is!in!accord!with!the!spirit!of!the!law,!considering!the!serious!and!farHreaching!consequences!of!a!suspension!of!a!public! % official!even!before!his!conviction,!and!the!demands!of!public!interest!for!a!speedy!determination!of!the!issues!involved!in!the!case. The!purpose!of! the!preHsuspension!hearing!is!basically!to!determine!the!validity!of!the!information!and!thereby!furnish!the!court!with!a!basis!to!either!suspend!the! accused!and!proceed!with!the!trial!on!the!merits!of!the!case,!or!refuse!suspension!of!the!latter!and!dismiss!the!case,!or!correct!any!part!of!the! %% proceeding!which!impairs!its!validity. * Once*the*information*is*found*to*be*sufficient*in*form*and*substance,*then*the*court*must*issue*the*order*of*suspension*as*a*matter*of* course.*There*are*no*ifs*and*buts*about*it.*This*is*because*a*preventive*suspension*is*not*a*penalty.!It!is!not!imposed!as!a!result!of!judicial! % proceedings. ! However,! the% preventive% suspension% may% not% be% of% indefinite% duration% or% for% an% unreasonable% length% of% time;! it! would! be! constitutionally! proscribed! otherwise! as! it! raises,! at! the! very! least,! questions! of! denial! of! due! process! and! equal! protection! of! the! laws.%The! Court! has! thus! laid! down!the!rule!that!preventive!suspension!may!not!exceed!the!maximum!period!of!90!days!in!consonance!with!Presidential!Decree!No.!807!(the! Civil!Service!Decree),!now!Section!52!of!the!Administrative!Code!of!1987.!