HUMAN POSITIVE LAW
• a rule of conduct, just, obligatory, promulgated by legitimate authority, and of
common observance and benefit. (Sanchez Roman)
Elements:
1. Reasonable rule of action.
2. Due promulgation — for otherwise obedience can hardly be expected.
3. Promulgation by competent authority.
4. Generally, a sanction imposed for disobedience.
• Human positive law covers only external conduct, morality covers both
external acts and internal thoughts
• As a cause, “derecho” is the abstract science of law; considered as an
effect, it is the given. Ex. (A student of law (derecho) studies specific laws
(leyes))
• “Ley” is a specific law
Classification of Human Positive Law
• According to whether a right is given, or merely the procedure for
enforcement is laid down
o Substantive —establishes rights and duties.
o Remedial (or procedural or adjective) —prescribes the manner of
enforcing legal rights and claims.
• According to the scope or content of the law:
o Private law —regulates the relations of the members of a
community with one another. (Civil and Commercial)
o Public law —governs the relations of the individual with the State
as a whole. (Pol. Law, Criminal, Remedial)
• According to force or effect:
o Mandatory (absolute, imperative) and/or Prohibitive laws —have to
be complied with, because they are expressive of public policy:
disobedience is punished either by direct penalties or by
considering an act or contract void.
o Permissive (or suppletory) laws —may be deviated from, if the
individual so desires.
CIVIL LAW
• Generally treats of the personal and family relations of an individual, his
property and successional rights, and the effects of his obligations and
contracts.
• Civil law governs the relations of the members of a community with one
another, political law deals with the relations of the people and the
government.
• Civil Code is not the only place where we can find our civil laws. A Civil
Code is a compilation of existing civil laws.
• A codification may be necessary to provide for simplicity, unity, order, and
reform in legislation.
• Additional civil statutes, civil presidential decrees (during the existence of
martial law), or civil executive orders may be promulgated
o P.D. 603 “The Child and Youth Welfare Code,’’
o E. O. 209, July 6, 1987, as amended by E. O. 227 - “The Family
Code of the PH”
 Amends parts of the Civil Code and PD 603


PRELIMINARY TITLE
• The purpose of this Title is to set forth general principles.
Chapter 1: EFFECT AND APPLICATION OF LAWS
Article 1. This Act shall be known as the Civil Code of the PH.
REPUBLIC ACT NUMBER 386
• Prepared by the Roxas Code Commission.
• Executive Order No. 48 of March 20, 1947 by President Manuel Roxas. Dr.
Jorge C. Bocobo was the chairman.
• Codification ended Dec. 7, 1889.
• Passed on January 26, 1949. “An Act to Ordain and Institute the Civil Code
of the PH.”
Sources of the Civil Code
Why know the source: for jurisprudence purposes to help and provide on how the
case will be decided in the absence of local decision, though we are not obliged to
follow these foreign jurisprudence.
• The Civil Code of Spain 1889 (based on Napoleonic Code)
• The Philippine Constitution 1935
• Statutes, laws (Philippine, American, European)
• Rules of Court (local and foreign)
• Customs and traditions of our people, provided they are not contrary to
existing laws, public order, or public policy
• General principles of law and equity
• Decisions of foreign courts/tribunals.
• General principles of law and equity
• Ideas from the Code Commission itself
Article 2. Laws shall take effect after fifteen days following the completion of
their publication in the Official Gazette, unless it is otherwise provided. This
Code shall take effect one year after publication.
• The 1950 Civil Code took effect on August 30, 1950.
EXECUTIVE ORDER NO. 200
• amended by E. O. No. 200 dated June 18, 1987 issued by President Aquino
• Providing for the publication of laws either in the official gazette or in a
newspaper of general circulation in the PH as a requirement for their
effectivity.
o Why? So there could be more measure for people to know the law.
th
• Tañada v. Tuvera - laws say “after 15 days following,” meaning on the 16
th
day following publication, not on the 15 day following
• Still no amount of judicial legislation can or should outweigh the
provision of Sec. 11 of the Revised Administrative Code. Dura lex sed
lex (“the law may be harsh but it is the law’’). Legal Maxim
o One’s a law is passed, the morality of the law is already.
o Regardless of how hard the law maybe, you cannot question its
morality, you can only disagree.
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 • There is a conclusive presumption: the people knows the law after
publication
o This is not a rebuttal presumption where the premise is allowed to
be contested. When you say conclusive, it cannot be disputed.
EFFECTIVITY OF LAWS
• When a statute does not explicitly provide for its effectivity, it shall have
effect only after the 15-day period ff, the completion of its publication.
o You cannot dispense the publication of the law
• The publication and the fifteen-day period requirements are intended to
enable the people to become familiar with the statute.
• Publication must be made in full (full content of the law), or it will not be
considered published.
• Where a law provides for its own effectivity, publication is not necessary so
long as it is not punitive (inflicting punishment) in character.
o However, when it says, “eff. Immediately” it means it will be
effective 15 days after the publication.
• No one shall be charged with notice of the statute’s provision until the said
publication is completed and the fifteen-day period has expired.
• Covered by this rule are:
o An ordinary law
o The Special Laws
 Presidential decrees & exec. orders
 Administrative rules and regulations if their purpose is to
enforce or implement existing law pursuant also to a valid
delegation
 General Orders (CODES)
 Proclamations (announcements)
 The charter of a city notwithstanding that it applies to only
a portion of the national territory and directly affects only
the inhabitants of that place.
 circulars issued by the Monetary Board if they are meant
not merely to interpret but to “fill in the details” of the
Central Bank Act which that body is supposed to enforce
 law on prescription
• No publication is required in:
o Interpretative regulations and those merely internal in nature, that
is, regulating only the personnel of the administrative agency and
not the public.
 Why?: they only affirm existing laws.
o so-called letters of instructions issued by the administrative
superiors
o municipal ordinances are not covered by this rule but by the Local
Government Code (ex. Municipal law)
• Rule applied to EO and Administrative Rules
o Must conform to standards of the law
o Administrative Rules have the force of law.
Tayug Rural Bank v. CB
• If conflict exists between the basic law and a rule or regulation issued to
implement it, the basic law prevails.


• Rules that subvert the statute cannot be sanctioned.
THE CLAUSE “UNLESS IT IS OTHERWISE PROVIDED.”
• Solely refers to the 15-day period and not to the requirement of publication.
• Such omission would offend due process insofar as it would deny the public
of the laws that are supposed to govern it.
• it is not unlikely that persons not aware of it would be prejudiced as a result
• If the law provides for a different period shorter or longer than the fifteen-day
period, then such shorter or longer period, will prevail.
• the effectivity provision refers to all statutes, including those local and
private laws unless there are special laws providing a different effectivity
mechanism for particular statutes
Article 3. Ignorance of the law excuses no one from compliance therewith. (2)
• Founded not only on expediency and policy (cosiderations/basis of Art. 3)
but on necessity. Ignorantia legis non excusat (MAXIM)
• Without the maxim, the corrupt will make social existence unbearable,
abuses will increase, and ignorance will be rewarded.
• Applies to all kinds of domestic laws, whether civil or penal (includes
permissive or suppletory laws)
• Maxim applies only to mandatory and prohibitory laws.
• A necessary consequence of the mandatory provision that all laws must be
published.
• We are not expected to know foreign law.
• Ignorance of foreign law is not ignorance of the law, but ignorance of the fact
because foreign laws must be alleged and proved as matters of fact, there
being no judicial notice of said foreign laws.
o How do we prove it as a fact? By presenting evidence that such a
foreign law exist
• Processual Presumption - If the foreign law is not properly alleged and
proved, the presumption is that it is the same as our law.
Republic v. Emilio Guanzon
• Emilio Guanzon borrowed money from the Bank of Taiwan during the
Japanese occupation. Security was given in the form of a real mortgage on
two parcels, and a chattel
• The mortgage credit was transferred to the PH (Philippine Property Act of
1946)
• The PH filed an action for foreclosure. The lower court dismissed it: bec. PH
is not a party in interest
• Foreign law cited cannot be taken judicial notice of, and resultantly, cannot
be effective in our country.
• HELD:
o The PH has legal interest in the mortgage loans, because the
mortgage credit was transferred to us by the Americans
o Because of such consent, said foreign law can be taken judicial
notice of, and therefore can be given effect in our country.
• Ignorance of the fact has no criminal intent as long as there is no
negligence.
• Good faith only mitigates liability.
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 o Ex. Man who marries a second wife upon the belief after due
search that his wife, missing for 10 years, is dead, does not incur
criminal responsibility) even if it turns out that the first wife is still
alive.
Art. 41 of the Family Code, however, provides:
• A marriage contracted by any person during the subsistence of a previous
marriage shall be null and void, the prior spouse had been absent for four
consecutive years and the spouse present had a well-founded belief that the
absent spouse was already dead.
• In case of disappearance where there is danger of death under the
circumstances set forth in the provisions of Art. 391 (Civil), an absence of
only two years shall be sufficient.
• These are mere honest mistakes of facts:
o An honest error made by a lawyer in the interpretation of the law.
“No Attorney is bound to know all the laws. A client is bound by the
mistakes of his lawyer.
o An erroneous belief that a certain court had jurisdiction to grant an
absolute divorce.
o If a girl married without parental consent thinking she was already
of a certain age when as a matter of fact she was several years
younger.
• A mistake on a doubtful or difficult question of law may be the basis of good
faith, however, he is still liable, but his liability shall be mitigated.
Ignorance on the part of the judge: Asuncion v. Hon. Casiano P. Anunciacion, Jr.
• The judge proceeded w/ the case w/o the petitioner’s lawyer.
• Constitute oppressive and precipitate action by respondent Judge who
displayed arrogance and gross ignorance of the law and violated the
complainants’ human rights.
Atty. H. Balayon, Jr. v. Judge G. Ocampo
• The judge is twice charged of issuing a search warrant and/or warrant of
arrest in violation of the requirement of personal knowledge of the facts and
circumstances by the applicant and his witnesses.
On the Part of the Sheriff: Del Rosario, et al. v. Bascar, Jr., et al. Adm. Matter
• Rosario, et al., charged Deputy Sheriff Jose Bascar, Jr. of the Municipal Trial
Court in Cities (MTCC), Branch 4, Cebu City for “Gross Ignorance of the
Law, Levying Properties Unreasonably and Unnecessarily Levying
Properties with Malice and Abuse of Authority and Gross/Willful Violation of
Law.’’
• Origin of the complain:
o “Angel Veloso, et al. v. Esperanza del Rosario, et al.,’’ for violation
of PD 957, otherwise known as the Subdivision and Condominium
Buyer’s Protective Decree. The court rule against the respondents
• Complainants alleged that respondent Deputy Sheriff is grossly ignorant of
the law in implementing the writ of execution of the dispositive portion of the
aforecited case which orders specific performance and hence, is governed
by Sec. 9 of Rule 39 of the Rules of Court - no levy of personal or real
properties is required but thru gross ignorance, respondent executed the writ
pursuant to Sec. 15 of Rule 39 and proceeded to levy on execution (3)
parcels of land having a wherein Esperanza del Rosario has alleged shares,


interest and participation, in order to satisfy the judgment involving specific
performance.
• Complainants alleged that the levy on execution involved registered lands
and hence, must be in accordance with Sec. 71, RA 496 which requires that
levy on execution of registered lands must contain a reference to the
number of the Certificate of Title of the land to be affected.
• Respondent is grossly ignorant of the law considering that the dispositive
portion of the decision is for specific performance and the fine of P2,000 is
not payable to the prevailing parties but to the Commission.
• Pursuant to a Resolution of the SC dated Nov. 23, 1988, respondent filed
his comment on the complaint, contending that the levy was not made to
satisfy the fine of P2000 but to protect the rights of the prevailing parties
considering that complainants refused to comply with the decretal portion of
the decision.
• HELD: The deputy sheriff’s unjustifiable acts demand sanction. Respondent
acted with gross ignorance of the law in making an unreasonable and
unnecessary levy. He made no effort to limit the levy to the amount called
for in the writ.
o It was not incumbent upon him as sheriff to determine for himself
the means to safeguard the rights of the prevailing party in a case
for specific performance.
• What he was meant to do: to serve the writ of execution with a certified copy
of the judgment requiring specific performance upon the party/parties
against whom the same was rendered and in case of failure to abide, it is at
the prevailing party’s instance not the sheriff’s that the aid of the court may
be sought.
Article 4. Laws shall have no retroactive effect, unless the contrary is provided.
(3)
NON-RETROACTIVITY OF LAWS
• Law looks to the future and has no retroactive effect unless the legislature
may have given that effect to some legal provisions.
• Statutes are to be construed as having only prospective operation, unless
the purpose and intention of the legislature to give them a retrospective
effect is expressly declared or is necessarily implied.
• If laws are retroactive, it will bring about serious injustice as this would allow
impairment of vested rights.
• Ignorance refers only to laws that have already been enacted.
NASSCO v. Santos
• Workmen’s Compensation Act, effective June 20, 1962, making the Act
apply to all industrial employees without regard to the amount of
compensation, cannot be applied so as to give compensation for the death
of a laborer in 1951
Largardo v. Masaganda
• RA 2613, inferior courts had NO jurisdiction to appoint guardians. A
subsequent statute, Rep. Act No. 3090, approved in June 1961, granted to
said courts jurisdiction would a municipal court have jurisdiction over a
petition for guardianship filed in January 1960, when Rep. Act No. 2613 was
still in force?
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 • Held: No, for the new Act should not be given retroactive effect. The
jurisdiction of a court depends on the law existing at the time an action is
filed.
• Buyco v. Philippine National Bank
• After an Act is amended, the original Act continues to be in force with regard
to all rights that had accrued prior to such amendment.
• It has been held that RA 1576 divesting the Philippine National Bank of the
authority to accept backpay certificates in payment of loans, does not apply
where the offer of payment was made before the effectivity of said Act.
• People v. Jabinal
• When a doctrine laid down by the SC is overruled and a different view
adopted, the new doctrine should be applied prospectively, and not apply to
parties relying on the old doctrine and acting on the faith thereof.
RETROACTIVE APPLICATION
• legislature has the power to pass retroactive laws which do not impair the
obligation of contracts, or affect injuriously vested rights
• Statutes are not to be construed as intended to have a retroactive effect so
as to affect the pending proceedings, unless such intent is expressly
declared or clearly and necessarily implied from the language of the
enactment.
• Instances when a law may be given retroactive effect:
1. When the law expressly provides for retroactivity. (Family Code of the
PH, Art. 256)
• In no case must an ex post facto law be passed.
• Ex post facto law - makes criminal and punishable an act done
before the passing of the law and which was innocent when done.
• War Profits Tax Law while retroactive in application (since the law
was enacted AFTER World War II) is not unconstitutional since, it is
NOT ex post facto.
• The prohibition against ex post facto laws applies only to criminal
matters, and not to civil matters
2. When the law is curative / remedial. (necessarily retrospective) Why?
• There are no vested rights in rules of procedure new rules of court
on procedure can apply to pending actions
• They are remedial by curing defects and adding to the means of
enforcing existing obligations.
• If the thing omitted or failed to be done, and which constitutes the
defect sought to be removed or make harmless, is something
which the legislature might have dispensed with by previous
statutes, it may do so by subsequent ones.
• Retroactive operation will more readily be ascribed to legislation
that is curative or legalizing than to legislation which may
disadvantageously, though legally, affect past relations and
transactions
Development Bank of the PH v. Court of Appeals, 96 SCRA 34
• Questions as to the legality of the purchase of certain lots acquired
by the DBP pursuant to Republic Act No. 85 and where Congress
enacted Republic Act No. 3147 precisely to correct any invalidity.
• "Thus make valid that which, before enactment of the statute, was
invalid."


• Republic Act No. 3147 was enacted on July 17, 1961, at a time
when the legality of the acquisition of the lots by the DBP for its
housing project was under question. It is therefore a curative
statute to render valid the acquisition by the DBP of the 159 lots
from the PHHC.’’
• laws which regulate the registration of instruments affecting titles to
land may be held to apply to deeds dated before as well as after
their enactment when a reasonable time is given within which the
effect of such statutes, may be avoided and rendered harmless in
respect to vested rights
3. When the law is procedural. When a statute deals with procedure only,
prima facie, it applies to all actions.
• a law prescribing the form of pleadings will apply to all pleadings
filed after its enactment, although the action is begun before that
time
• while changes in substantive law or SC judicial doctrines
interpreting the application of a particular law may not be applied
retroactively, especially when prejudice will result to the party that
has followed the earlier law or judicial doctrine, that principle does
not obtain in remedial or procedural law
4. When the law is penal in character and favorable to the accused.
• Article 22 of the Revised Penal Code shall have retroactive effect
insofar as they favor the person guilty of a felony, who is not a
habitual criminal
• habitual delinquent- If within a period of ten years from the date of
his release or last conviction of the crime of serious or less serious
physical injuries, he is found guilty of any said crimes a third time or
oftener.
5. If the laws are of an emergency nature and are authorized by the police
power of the government
• SC decides what are vested or acquired rights
• Vested right cannot be questions as they are already acquuired
• Succession accrues from the moment of death and not from the
moment of distribution of the inheritance.
6. If a substantive right be declared for the first time, unless vested rights
are impaired.
Article 5. Acts executed against the provisions of mandatory or prohibitory
laws shall be void, except when the law itself authorizes their validity. (4a)
MANDATORY AND PROHIBITORY LAWS
• A mandatory provision of law is one the omission of which renders the
proceeding or acts to which it relates generally illegal or void. Prescriptive
periods provided by the law for filing particular suits are mandatory in
character.
• While one has to obey mandatory statutes, other- wise his acts would
generally be void, the violation of directory laws does not result in invalid
acts.
Kinds of mandatory legislation
• Positive — when something must be done
• Prohibitory laws - when something should not be
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 o Acts committed in violation of prohibitory laws are likewise void.
Exceptions (not void when violated):
a. When the law makes the act not void but merely voidable (valid, unless
annulled) at the instance of the victim.
b. When the law makes the act valid, but subjects the wrongdoer to
criminal responsibility.
c. When the law makes the act itself void, but recognizes some legal
effects fl owing therefrom
d. When the law itself makes certain acts valid although generally they
would have been void.
Article 6. Rights may be waived, unless the waiver is contrary to law, public
policy, morals or good customs, or prejudicial to a third person with a right
recognized by law.
• Also applied to juridical persons
WAIVER
• The intentional relinquishment of a known right.
• Not presumed, but must be clearly and convincingly shown, either by
express stipulation or acts admitting no other reasonable explanation.
• A right, in order that it may be validly waived, it must be:
o in existence at the time of the waiver
o Exercised by a duly capacitated person actually possessing the
right to make the waiver. The person must be in legal age: 18
o The waiver must be made clearly, but not necessarily express.
o In certain instances the waiver, as in the express remission of a
debt owed in favor of the waiver, must comply with the formalities
of a donation
o The waiver must not be contrary to law, morals, public policy public
order or good customs
o Must not prejudice others with a right recognized by law
PROHIBITION AGAINST WAIVER
• Waivers cannot be made if:
o they are contrary to law, public order, public policy, morals or good
customs, or
o Prejudicial to a third person with a right recognized by law.
• Gongon vs. Court of Appeals, 32 SCRA 412
o Petitioner’s position is that his preferential right could not be validly
waived, such waiver being against public policy. (Commonwealth
Act No. 539)
o Being contrary to public policy, the alleged waiver of his right made
by herein petitioner should be considered null and void.
• The signing by a disabled employee of a satisfaction receipt does not
constitute a waiver.
• Law does not consider as valid any agreement to receive less compensation
than the worker is entitled to recover under the law.
• The acceptance of benefits such as separation pay and terminal leave
benefits would not amount to estoppel or waiver of right of employee to
contest his illegal dismissal
RIGHTS


• the power or privilege given to one person and as a rule demandable of
another
• Rights involve two subjects: the active subject (the person entitled) and the
passive subject (the person obliged to suffer the enforcement of the right).
Rights may be:
i. real rights (jus in re, jus in rem) — enforceable against the whole
world (absolute rights);
ii. Personal rights (jus in personam, jus ad rem) — enforceable
against a particular individual (relative rights).
Rights that cannot be renounced:
i. Natural rights, such as the right to life
a. If a person requests another to kill him, the killer would still be
criminally liable. (Art. 253 Penal)
ii. Alleged rights which really do not yet exist
a. Future inheritance cannot be renounced
iii. Those the renunciation of which would infringe upon public policy
a. The right to be heard in court
b. A waiver of the legal right to repurchase a homestead that had
been sold if the waiver is made in advance.
c. A waiver in advance of the one-month separation pay is contrary to
public policy, but not a waiver after the right has accrued
d. A tenant is not allowed to waive his right to the exemption provided
by the Rice Tenancy Act from lien and attachment of 25% of his
share in the land products because such a waiver would be
equivalent to a waiver of the tenant’s right to live.
e. A waiver of the 10-year period for suing on a written contract.
f. A stipulation requiring the recipient of a scholarship grant to waive
(before receiving said award) his right to transfer to another school,
unless he refunds the equivalent of his scholarship in cash, is null
and void.
iv. Where , however, the object of a statute is to promote great public interests,
liberty and morals, it cannot be defeated by any private stipulation
a. Ex. (Marriage) husband and a wife providing that they consent or
allow another partner are void
v. When the waiver is prejudicial to a third person with a right recognized by
law
a. While an heir may renounce present inheritance still if the waiver
will prejudice existing creditors, the latter can accept the inheritance
in the name of the heir, but only to the extent sufficient to cover the
amount of their credits.
b. Padilla v. Dizon - Because the land he bought had a much smaller
area than what had been agreed upon, Padilla sued the seller
Dizon either for a refund of the whole amount or for a proportionate
reduction in price. The decision is in Padilla’s favor - Dizon selected
the right to refund the whole amount. but, Padilla filed a motion to
waive the decision in his favor, and asked for the restoration of the
parties to the status quo
-Cannot be done because a waiver cannot prejudice the
rd
right given to Dizon (3 party) to make the choice.
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 • Rights, protections, and advantages conferred by statutes may be generally
waived.
o Support in arrears (overdue debt/thing/obligation that is not paid
yet). However, supports, as long as it is in the past could be
waived.
 Ex. Inheritance.
o The right granted to prepare at least two days before trial is
waivable, expressly or impliedly.
o The right to object to testimony of a wife on information obtained
because of her domestic relations with her husband, is waived
when a husband accused of killing his son, does not only deny his
guilt, but also points to the wife as the killer.
o The right of the accused to be helped by counsel may also be
waived; provided, the judge informs said accused of his right.
o The right of the accused in a criminal case to have a preliminary
investigation
o The venue of actions (the place where the action should be
brought) may be waived, but not the court’s jurisdiction.
o Although a tax obligation has already been extinguished by
prescription, the taxpayer may waive the benefit granted by law by
reason of said prescription by the execution of a chattel mortgage
to secure the payment of the same.
o An individual who accepts the office of an executor or administrator
may waive compensation
o The right to the back pay of an employee who has been dismissed
without any justifiable cause (esp. when he is put back to work)
o Failure to ask for vacation and sick leave privileges after a period of
more than 5 years constitutes a valid waiver unless the intent of the
law granting the same is clearly otherwise.
o Prescription, if not pleaded as a defense before or during the trial,
is deemed waived, and said defense cannot therefore be raised for
the first time on appeal
Papa and Delgado v. Montenegro
• A husband had the right to refuse his wife permission to alienate her
paraphernal property under Paraphernal law– could this be waived?
• Yes, since there is nothing in the waiver that would be detrimental to
anybody else
Article 7. Laws are repealed only by subsequent ones, and their violation or
non-observance shall not be excused by disuse, or custom, or practice to the
contrary.
When the courts declare a law to be inconsistent with the Constitution, the
former shall be void and the latter shall govern.
Administrative or executive acts, orders and regulations shall be valid only
when they are not contrary to the laws or the Constitution.
REPEAL
• the legislative act of abrogating through a subsequent law the effects of a
previous statute or portions thereof


• Disuse, custom, or practice to the contrary does not repeal a law
• A mistake in the law or in legislation cannot be corrected by executive fiat
but by another legislation.
• Implied repeal takes place when a new law contains provisions contrary to
or inconsistent with those of a former without expressly repealing them.
o Implied repeals are not looked upon with favor. If both statutes can
stand together, there is no repeal.
• Express repeal is a repeal which is literally declared by a new law, either in
specific terms, as where particular laws and provisions are named and
identified and declared to be repealed, or in general terms, as where a
provision in a new law declares all laws and parts of laws inconsistent
therewith to be repealed.
• However: Iloilo Palay and Corn Planters Association, Inc. v. Feliciano
o A repealing clause in an Act is a clause which predicates the
intended repeal upon the condition that substantial conflict must be
found in existing and prior acts.
o The rule against strict construction regarding implied repeals apply
ex proprio vigore. (by their/its own right)
Borlough v. Fortune Enterprises
• Chattel Mortgage Law, a chattel mortgage must be registered in the Chattel
Mortgage Registry; Motor Vehicles Law, a chattel mortgage on an
automobile must be registered in the Motor Vehicles Office. Is there repeal?
• No, because the requirement of registration in the Motor Vehicles Office is
merely additional to the requirements. The two laws are complementary, not
inconsistent
UNCONSTITUTIONAL STATUTES
• statutes should be given a meaning that will not bring them in conflict with
the Constitution
• The constitutionality or unconstitutionality of a statute depends upon factors
other than those existing at the time of the enactment thereof, unaffected by
the acts or omissions of law enforcing agencies, particularly those that take
place subsequently to the passage or approval of the law
The New Civil Code repeals:
• The old Civil Code of 1889.
• The Code of Commerce provisions on sales, partnership,
• Agency, loan, deposit, and guaranty.
• The provisions of the Code of Civil Procedure on
• prescription, as far as they are inconsistent with the
• New Civil Code.
• All laws, acts, parts of acts, Rules of Court, executive
• orders, and administrative regulations, inconsistent
• With the new Civil Code.
Family Code repeals the ff:
• Titles III, IV, V, VI, VII, VIII, IX, XI, and XV of Book 1 of the Civil Code
• Articles 17, 18, 19, 27, 28, 29, 30, 31, 39, 40, 41, and 42 of PD No. 603
Child and Youth Welfare Code,
• All laws, decrees, executive orders, proclamations, rules and regulations, or
parts thereof, inconsistent herewith are hereby repealed.
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CONFLICT BETWEEN A GENERAL AND A SPECIAL LAW
• If the general law was enacted prior to the special law, the latter is
considered the exception to the general law
• If the general law was enacted after the special law, the special law remains
unless:
• There is an express declaration to the contrary.
• There is a clear, necessary and irreconcilable conflict.
• Unless the subsequent general law covers the whole subject and is clearly
intended to replace the special law on the matter.
Lapse of Laws
• Lapse - end by itself in view of the expiration of the period during which it
was supposed to be effective.
• It does not necessitate any repeal as exemplified by the law granting the
President, Emergency Powers
• However: A committed an offense, but before the time of trial, the offense
was no longer considered an offense by the law. Should A still be punished?
• It depends:
o If there has been a complete repeal, he should not be punished
o If the law merely lapsed, the penalty can still be imposed.
Effect if the Repealing Law is Itself Repealed
• When a law which expressly repeals a prior law is itself repealed, the law
first repealed shall not be thereby revived, unless expressly so provided.
o Ex. Law A is expressly repealed by B. If B is itself repealed by C, is
A revived? No, unless C expressly so provides.
• When a law which repeals a prior law, not expressly but by implication, is
itself repealed, the repeal of the repealing law revives the prior law, unless
the language of the repealing statute provides otherwise.
o Ex: Law A is impliedly repealed by B. Law B is later repealed by C.
Is Law A revived? Yes, unless Law C provides otherwise.
UNCONSTITUTIONAL LAWS, TREATIES, ADMINISTRATIVE OR EXECUTIVE
ORDERS
• SC – SC justice + 14 Associate Justice. May sit en banc(full court) or in its
discretion, in divisions of three, five, or seven members
• If it is en banc, the unconstitutionality shall be decided with the concurrence
of a majority of the members who actually took part in the deliberations on
the issues in the case and voted thereon
• Cases or matters heard by a division shall be decided or resolved with the
concurrence of a majority of the members who actually took part in the
deliberations on the issues in the case and voted thereon, and in no case,
without the concurrence of at least three of such members.
• When the required number is not obtained, the case shall be decided en
banc: Provided, That no doctrine or principle of law laid down by the Court in
a decision rendered en banc or in division, may be modified or reversed
except by the Court sitting en ban.
• SC shall have the ff. powers:
o Review, revise, reverse, modify, or affirm on appeal


o Rules of Court may provide, final judgments or orders of lower
courts in all cases in which the constitutionality is questioned.
PARTIAL UNCONSTITUTIONALITY OF STATUTES
• Constitutionality of a law or executive order may not be collaterally attacked.
They shall, therefore, be deemed valid unless declared null and void by a
competent court.
• Where a portion of a statute is rendered unconstitutional and the remainder
valid, the parts will be separated, and the constitutional portion upheld
• However: Lidasan v. COMELEC
o But when the parts of the statute are so mutually dependent and
connected, as to warrant a belief that the legislature intended them
as a whole, then if some parts are unconstitutional, all the
provisions which are thus dependent, conditional or connected,
must fall with them.
o “The general rule is that where part of a statute is void, as
repugnant to the organic law, while another part is valid, the valid
portion, if separable from the invalid, may stand and be enforced.
But in order to do this, the valid portion must be so far independent
of the invalid portion that it is fair to presume that the Legislature
would have enacted it by itself if they had supposed that they could
not constitutionally enact the other."
o The constitutionality of a law may not be made to depend on the
effects of a conclusion based on a stipulation of facts entered into
by the parties
Some Grounds for Declaring a Law Unconstitutional
i. The enactment of the law may not be within the legislative powers of the
lawmaking body.
ii. Arbitrary methods may have been established.
iii. The purpose or effect violates the Constitution or its basic principles
Effect of a Law That Has Been Declared Unconstitutional
• Generally an unconstitutional law confers no right, creates no office, affords
no protection, and justifies no acts performed under it, there are instances
when the operation and effects of the declaration of its unconstitutionality
may be relaxed or qualified because the actual existence of the law prior to
such declaration is an operative fact and may have consequences which
cannot justly be ignored
• Operative fact - when a legislative or executive act, prior to its being
declared as unconstitutional by the courts, is valid and must be complied
with
RULES AND REGULATIONS/ADMINISTRATIVE AND EXECUTIVE ACTS
• When promulgated in pursuance of the procedure or authority conferred
upon the administrative agency by law, partake of the nature of a sanction
provided in the law. Why?
o Statutes are usually couched in general terms, after expressing the
policy, purposes, remedies and sanctions intended by the
legislature.
• The details and the manner of carrying out the law are oftentimes left to the
administrative agency entrusted with its enforcement
7

 • A rule is binding on the courts so long as the procedure fixed for its
promulgation is followed, and its scope is within the statutory authority
granted by the legislature, even if the courts are not in agreement with the
policy stated therein or its innate wisdom.
• The regulations adopted under legislative authority by a particular
department must be in harmony with the provisions of the law.
• Executive Department may not encroach upon the constitutional prerogative
of the SC to promulgate rules for admission to the practice of law in the PH
— the power to repeal, alter, or supplement such rules being reserved only
to Congress
• Departmental regulations must be in harmony with legal provisions. The
regulations by themselves should NOT be allowed to enlarge or extend the
law.
• Decisions of administrative officers should not be disturbed by the courts
except when the former have acted without jurisdiction or in grave abuse of
discretion. Lianga Bay Logging, Co., Inc. v. Hon. Enage
• the Court ordinarily respects the factual findings of administrative tribunals,
unless the factual findings are faulty/invalid Alcuaz, et al. v. PSBA
• The SC is clothed with ample authority to review palpable errors not
assigned as such if it finds that
• their consideration is necessary in arriving at a just decision
• Rules and regulations as well as administrative or executive acts violative of
the law and the constitution are invalid.
Article 8. Judicial decisions applying or interpreting the laws or the
Constitution shall form part of the legal system of the PH. (n)
JUDICIAL CONSTRUCTION AND INTERPRETATION
• The courts have the principal functions of resolving legal controversies,
interpreting and construing vague provisions of law relative to a particular
dispute.
• Construction - art or process of discovering and expounding the meaning
and intention of the authors of the law with respect to its application to a
given case
EFFECT OF JUDICIAL DECISION
• Judicial decisions – NOT LAW but assume the same authority as the statute
itself and, until authoritatively abandoned, necessarily become, to the extent
that they are applicable, the criteria which must control the actuations not
only of those called upon to abide thereby but also those duties bound to
enforce obedience thereto.
• Legal maxim “legis interpretatio legis vim obtinet” - the interpretation placed
upon the written law by a competent court has the force of law.
• Judicial decisions of the SC are authoritative and precedent-setting while
those of the inferior courts and the Court of Appeals are merely persuasive.
WHEN JUDICIAL DECISIONS DEEMED PART OF THE LAW
• The application and interpretation placed by the SC upon a law is part of the
law as of the date of the enactment of the said law since the SC's


application and interpretation merely established the contemporaneous
legislative intent that the construed law purports to carry into effect
• Only the decisions of the SC, and unreversed decisions of the Court of
Appeals on cases of first impression, establish jurisprudence/doctrines.
• The SC the last word on what the law is; it is the final arbiter of any
justiciable controversy
o decisions of subordinate courts are only persuasive in nature, and
can have no mandatory effect.
• However, a conclusion or pronouncement of the Court of Appeals which
covers a point of law still undecided may still serve as a judicial guide to the
inferior Courts
• It is possible that such conclusion or pronouncement can be raised to the
status of a doctrine, if after it has been subjected to test in the crucible of
analysis and revision, the SC should find that it has merits and qualities
sufficient for its consecration as a rule of jurisprudence.
• A final judgment “ratio decidendi” (rational for a decision) should, however,
be distinguished from the opinion which states the reasons for such
judgment
o an opinion is the informal expression of the views of the Court, it
cannot certainly prevail against its final order or decision
• No decision shall be rendered by any court without expressing therein
clearly and distinctly the facts and the law on which it is based. No petition
for review or motion for reconsideration of a decision of the court shall be
refused due course or denied without stating the legal basis therefore. (1987
Consti)
o does not require the court to write in its decision everything. It is
enough that the decision contains the necessary facts to warrant its
conclusion
Que v. People of the Phils
• After the judgment has become final, it are no longer debatable by the
parties in subsequent proceedings, whether erroneously decided or not.
o Final decision does NOT prevent a modification thereof, because
even with the finality of judgment, when its execution becomes
IMPOSSIBLE or UNJUST, it may be modified to harmonize with
justice and the facts.
o Still the court would have jurisdiction when compelling matters
demand that it should so act, lest more injustice result from further
delay in the final resolution of the case.
Doctrine of STARE DECISIS
• (let it stand, et non quieta movere) Why need this: stability in the law
• Means “adherence to precedents,” - once a case has been decided one
way, then another case, involving exactly the same point at issue, should be
decided in the same manner.
• When a case has been decided erroneously or if found to be contrary to law,
it must be abandoned. stare decisis does not and should not apply when
there is a conflict between the precedent and the law. The court shall be
right.
How Judicial Decisions May Be Abrogated
• By a contrary ruling by the SC itself
8

 • By corrective legislative acts of Congress.
o Congress cannot alter a SC interpretation of a constitutional
provision, for this would be an unwarranted assumption of judicial
power however, allowed to define the terms it uses in a statute,
said definitions being considered as part of the law itself
When Final Judgments May Be Changed
• While the trial court cannot change the decision of an appellate court which
is final and executor, two important things must be pointed out:
o a judgment void for lack of jurisdiction over the subject matter can
be assailed at any time either directly or collaterally
o when after judgment has been rendered and the latter has become
final, facts and circumstances transpire which render its execution
impossible or unjust, the interested party may ask the court to
modify or alter the judgment to harmonize the same with justice
and with the facts
• The doctrine of finality of judgments is grounded on fundamental
considerations concerning public policy and sound practice that at the risk of
occasional errors, court judgments must become final at some definite date
fixed by law
• The SC in its decisions is supreme, and no other government entity
including the tanodbayan/Ombudsman can declare them unjust
Barangay Courts
Crispina Peñafl or v. Hon. Paño
• No complaint, petition, action, or proceeding involving matters, within the
authority of the Lupon shall be filed or instituted in court unless there has
been confrontation between the parties.
• BC has no jurisdiction if the parties come from different municipalities AND
their barangays do not adjoin each other
Extradition Law (PD 1069)
• Extradition comes into play when a person charged with a crime under state
statutes flees the state.
• The removal of an accused from the PH with the object of placing him at the
disposal of foreign authorities to enable the requesting state or government
to hold him in connection with any criminal investigation directed against him
or the execution of a penalty imposed on him under the criminal law of the
requesting state or government
• The process of preparing a formal request for extradition is time consuming
and leakage prone. Expediency is important, so that criminals won’t get
away.
Is There a Philippine Common Law? (BAR)
• We do not have common law (law of customs) But:
• If what is meant by the phrase is case law, based almost exclusively on
Anglo-American common law which is not in conflict with local laws, customs
and constitution, then YES we sort of have:
o a common law that supplements and amplifies our statute law.
o if a case is covered by an express provision of the Civil Code, the
common law principle cannot be applied in deciding the same.


Obiter Dicta (Singular - Dictum)
• opinions not necessary to the determination of a case NOT BINDING and do
not have force of judicial precedents
• Considered as an OPINION not on the point of question
• A dissenting opinion affirms nothing -just expresses the dissenter’ view
Opinions of the Secretary of Justice and Other Executive Officials
• The Secretary of Justice is the legal adviser of the Government and his
opinions override those of provincial fiscals who are his subordinates
• His opinions are NOT law and cannot correct mistakes in legislation, but
should be given great weight. It has no controlling effect.
• The executive interpretation of legislative acts carries great weight
Judicial Review of Administrative Decisions
• Judicial review of the decision of an administrative official is subject to
certain guideposts. Findings of fact in such decision should not be disturbed
if supported by substantial evidence; but review is justified when there has
been a denial of due process, or mistake of law, or fraud, collusion, or
arbitrary action in the administrative proceeding.
• As a matter of principle, the SC will not set aside the conclusion reached by
an agency (like court of tax appeals)
Article 9. No judge or court shall decline to render judgment by reason of the
silence, obscurity or insufficiency of the laws. (6)
DUTY OF JUDGES
• Tasked with the dispensation of justice in accordance with the constitutional
precept that no person shall be deprived of life, liberty, and property without
due process of law.
• A judge must give a decision, whether he knows what law to apply or not.
• Old civil code: when there is no law exactly applicable to the point in
controversy, the custom of the place shall be applied, and in default thereof
the general principles of law (this is non-existent now).
• if the law be silent, obscure, or insufficient, what should the judge apply in
deciding a case
• The judge may apply any rule he desires as long as the rule chosen is in
harmony with general interest, order, morals, and public policy. Among such
rules may be the ff.
o Customs which are not contrary to law, public order, and public
policy. (See Art. 11, Civil Code).
o Decisions of foreign and local courts on similar cases.
o Opinions of highly qualified writers and professors.
o Rules of statutory construction.
o Principles laid down in analogous instances. Thus, the law
governing a particular matter is silent on a question at issue, the
provision of another law governing another matter may be applied
where the underlying principle or reason is the same. “Ubi cadem
ratio ibi eadem disposito.’’
JUDICIAL LEGISLATION
9

 • The judiciary is tasked with resolving legal controversies and interpreting
statutes.
o cannot legislate
o Legislation is the function of Congress
• However: Floresca v. Philex Mining Corporation
o the legislator, recognizes that in certain instances, the court“do and
must legislate” to fill in the gaps in the law. (J. Holmes.)
o While the judges do and must legislate, they can only do so only
interstitially (minimally)
 General principles of the natural moral law, human law,
and equity.
 Respect for human dignity and personality
Does Art. 9 Apply to Criminal Cases
• In a way, yes: applying the rule “nullum crimen, nulla poena sine lege” (there
is no crime and there is no penalty in the absence of law), nevertheless, if
somebody is accused of a non-existent crime, the judge must DISMISS the
case. Thus, is equivalent to a judicial acquittal
• Evaluation of testimony, particularly if conflicting, is the principal task of
courts of justice
Keeping Abreast With SC Decisions
• The duty is bound to be updated with SC’s decisions esp. those published in
reports journal
• The SCRA (SC Reports Annotated) and the SCAD (SC Advanced
Decisions).
SC — Basically a Review Court
• It passes upon errors of law (and sometimes of fact, as in the case of
mandatory appeals of capital offenses) of lower courts as well as determines
whether there had been grave abuse of discretion amounting to lack or
excess of jurisdiction on the part of any “branch or instrumentality’’ of
government.
Article 10. In case of doubt in the interpretation and application of laws, it is
presumed that the lawmaking body intended right and justice to prevail. (n)
• Jure naturae aequum est, meminem cum alterius detrimento et injuria fieri
locupletiorem” or “Ninguno non deue enriquecerse tortizeramente con dano
de otro.” - When the statutes are silent or ambiguous, this is one of those
fundamental principles which the courts invoke in order to arrive at a
solution that would respond to the vehement urge of conscience.
In Case of Doubt
• The judge should presume that “the lawmaking body intended right and
justice to prevail.”
• Judicial conclusions inconsistent with the spirit of a law must be avoided
• “When the reason for the law ceases, the law automatically ceases to be
one.” Cessante ratione cessat ipsa lex.
• Equity as “justice sweetened with mercy.’’ (Justinian)
• Courts are not bound by a legislator’s opinion in congressional debates
regarding the interpretation of a particular legislation.


• Art. 10, according to the Code Commission, “is necessary so that it may tip
the scales in favor of right and justice when the law is doubtful or obscure. It
will strengthen the determination of the courts to avoid an injustice which
may apparently be authorized by some way of interpreting the law.”
DOUBTFUL STATUTES
• Dura Lex Sed Lex (The law may be harsh, but it is still the law)
• The first duty of the judge is to apply the law – wise or not, unjust/just -
provided that the law is clear, and there is no doubt
• Where the law is clear, it must be taken as it is devoid of judicial addition
and subtraction.
• Construction and interpretation come only after it has been demonstrated
that application is impossible or inadequate without them.
• Be it observed that our courts are referred to as courts of law (not
necessarily of justice)
• If there is ambiguity in the law, interpretation of the law requires fidelity to
the legislative purpose.
• The SC has cautioned against narrowly interpreting a statute. A literal
interpretation is to be rejected if it would be unjust or lead to absurd results.
Some Rules of Statutory Construction
• When a law has been clearly worded, there is no room for interpretation.
Immediately, application of the law must be made unless consequences or
oppression would arise.
• If there are two possible interpretations or constructions of a law, that which
will achieve the ends desired by Congress should be adopted.
• In interpreting a law, the ff. can be considered: the preamble of the statute:
o foreign laws from which the law was derived
o history of the framing of the law, including the deliberations in
Congress
o similar laws on the same subject matter (in pari material)
o Patent or obvious mistakes and misprints in the law, may properly
be corrected by our courts.
• Laws of pleadings, practice, and procedure must be liberally construed.
• Laws in derogation of a natural or basic right must be strictly, i.e.,
restrictively, interpreted. Therefore, extensions by analogy should be
avoided.
o SC is against narrowly interpreting a statute. Literal interpretation is
to be rejected if it would be unjust or lead to absurd results.
• The contemporaneous interpretation given by administrative officials to a
law which they are duty bound to enforce or implement deserves great
weight.
EQUITY
• Fairness; it is used to mitigate the harshness of law.
• The court will not apply equity, if equity will not serve the ends of justice.
• Justice is done according to law. As a rule, equity follows the law. There
may be a moral obligation, often regarded as an equitable consideration
(meaning compassion), but if there is no legal duty, the action must fail.
• One cannot invoke equity as a ground for reopening a case if an express
provision of law exists under which the remedy can be invoked.
10

 • There are instances, when a court of equity gives a remedy where the law
gives none; but if the law gives a particular remedy, and that remedy is
bounded and circumscribed by particular rules
• We are a court both of law and of justice. We apply the law with justice for
that is our mission and purpose in the scheme of our republic.
Examples of doubtful cases:
• The term “continuous’’ in the provision referring to “continuous possession’’
does not mean that the concession of status must be forever but it must not
be of an intermittent character. If the concession is only intermittent, the
ground of “continuous possession’’ does not exist but the law allows for
recognition other means allowed by the law of evidence. (Mendoza v. Court
of Appeals)
• Slanderous words must be construed in their plain meaning.
• (Republic v. Judge Marcos) For the publication of a petition for a change of
name, the real name and the alias or aliases used must be included in the
caption. The name to be adopted must also be included. The person
desiring the change must file the petition
• Citizenship cannot be attacked collaterally
Article 11. Customs which are contrary to law, public order or public policy
shall not be countenanced. (n)
Article 12. A custom must be proved as a fact, according to the rules of
evidence. (n)
CUSTOMS
• There is a presumption that a person acts according to the custom of the
place
• Courts take no judicial notice of custom
• A custom is presumed not to exist when those who should know, do not
know of its existence
• a rule of conduct formed by repetition of acts, uniformly observed (practiced)
as a social rule, thru the implicit approval of the lawmakers, thus legally
binding and obligatory.
• Juridical custom - can supplement statutory law or applied in the absence of
such statute.
• Social custom - cannot supplement.
• Custom, even if proven, cannot prevail over a statutory rule or even a legal
rule enunciated by the SC
• a law is written, consciously made, and enacted by Congress, a custom is
unwritten, spontaneous, and comes from society.
Requisites Before the Courts can Consider Custom
• A custom must be proved as a fact, according to the rules of evidence
• The custom must not be contrary to law (contra legem), public order, or
public policy
• There must be a number of repeated acts
• The repeated acts must have been uniformly performed


• There must be a juridical intention (convictio juris seu necessitatis) to make
a rule of social conduct, i.e., there must be a conviction in the community
that it is the proper way of acting thus a person who disregards the custom
in fact also disregards the law.
• There must be a sufficient lapse of time — this by itself is not a requisite of
custom, but it gives evidence of the fact that indeed it exists and is being
duly observed.
Kinds of Customs
• General custom is that of a country; “custom of the place” where an act
transpires.
• if in conflict with the local custom yields to the latter. However, in the
absence of proof to the contrary, a general custom is presumed to be also
the “custom of the place.’’
• Propter legem (in accordance with law) or contra legem (against the law). It
is unnecessary to apply the first, because it merely repeats the law; it is
wrong to apply the second
• extra legem are those which may constitute sources of supplementary law,
in default of specific legislation on the matter.
Article 13. When the law speaks of years, months, days or nights, it shall be
understood that years are of three hundred sixty-five days each; months, of
thirty days; days, of twenty-four hours; and nights from sunset to sunrise.
If months are designated by their name, they shall be computed by the number
of days which they respectively have.
In computing a period, the first day shall be excluded, and the last day
included. (7a)
YEAR
• Does not apply in computing the age of a person. Must not multiply age by
365.
MONTHS AND LEAP YEARS
• In years as in prescriptive periods for crimes, the number of years involved
should be multiplied by 365. In effect, if the period is longer than 10 yrs, the
period will be shorter than when the calendar reckoning is used because
certain years are LEAP YEARS.
• If months are NOT designated by name, it should be counted as 30 days so
for ex. a debt payable in 10 months must be paid at the end of 300 days,
and not on the same date of a month, ten months later.
DAY, NIGHT AND PERIOD
• a particular statute is to be effective on the 20th day from its publication and
such publication was actually made on February 3, 1998, then the law shall
be effective on February 23, 1998
11

 • In computing a period, the first day shall be excluded, and the last day
included
• Words ‘On or About’ envisage a period, months or even 2 or 4 years before
the date indicated
• ‘Until Further Notice’ prescribes To a limit to the extension of the contract
conditional on a future event, specifically the receipt by the concessionaire
of a notice of termination from the grantor.
Meaning of ‘Day’ Applied to the Filing of Pleadings
• When is mailed petition considered fi led, from the date of mailing or from
the time of actual receipt by the Court? The SC held that the petition is
considered filed from the time of mailing. This is because the practice in our
courts is to consider the mail as an agent of the government, so that the
date of mailing has always been considered as the date of the filing of any
petition, motion or paper.
• While there is a presumption that a letter duly directed and mailed was
received in the regular course of mail, still there are two facts that must fi rst
be proved before the presumption can be availed of:
• The letter must have been properly addressed with postage prepaid, and (b)
the letter must have been mailed.
If the last day is a Sunday or a legal holiday, is the act due that day or the
following day
• In an ordinary contract, the general rule is that an act is due even if the last
day be a Sunday or a legal holiday because obligations arising from
contracts have the force of law between the contracting parties. (Art. 1159,
Civil Code). There are some exceptions, among them the maturity date of a
negotiable instrument.
• When the time refers to a period prescribed or allowed by the Rules of
Court, by an order of the court, or by any other applicable statute, if the last
day is a Sunday or a legal holiday, it is understood that the last day should
really be the next day, provided said day is neither a Sunday nor a legal
holiday.
Article 14. Penal laws and those of public security and safety shall be
obligatory upon all who live or sojourn in Philippine territory, subject to the
principles of public international law and to treaty stipulations. (8a)
Theories of Territoriality and Generality
• Theory of Territoriality any offense committed within our territory offends the
state. Any person, whether citizen or alien, can be punished for committing a
crime here.
o Thus, the technical term generality came into being - even aliens,
male or female come under our territorial jurisdiction. This is
because aliens owe some sort of allegiance even if it be temporary.
OBLIGATORY FORCE OF PENAL LAWS
• Citizens and foreigners (even travelling in Philippine territory) are subject to
all penal laws and all other laws designed to maintain public security and
safety.


EXCEPTION
• Where the Philippine government has waived its criminal jurisdiction over
them on the basis of the principles of public international law and treaty
stipulations. (2 Exceptions)
• 1961 Vienna Convention on Diplomatic Relations - the diplomatic agent
shall be inviolable and he shall not be liable to any form of arrest or
detention (Art. 29)
• immunity from criminal jurisdiction of the receiving state (Art. 31)
• A diplomatic agent - head of the mission or a member of the diplomatic staff
of the mission (Art. 1)
o If they travel incognito but with the knowledge of our government
officials, heads of states are entitled to immunity. If the incognito
travel is without the knowledge or permission of our country,
diplomatic immunity cannot be insisted upon, and the heads of
states traveling may be arrested. However, once they reveal their
identity, immunity is given.
• Heads of state who are officially visiting here in the PH are immune from
criminal jurisdiction.
Article 15. Laws relating to family rights and duties, or to the status, condition
and legal capacity of persons are binding upon citizens of the PH, even though
living abroad. (9a)
STATUS
• Includes personal qualities and relations, more or less permanent in nature,
and not ordinarily terminable at his own will, such as his being married or
not, or his being legitimate or illegitimate.
• the sum total of a person’s rights, duties, and capacities
Scope of Art. 15 (Nationality Principle)
• Family rights and duties (parental authority, marital authority, support);
• Status;
• Condition;
• Legal capacity. (But there are various exceptions to this rule on legal
capacity.)
• Art. 15 of the Code of Commerce says that “foreigners and companies
created abroad may engage in commerce in the PH subject to the laws of
their country with respect to their capacity to contract.’’
NATIONALITY RULE (Applicability of Art. 15)
• Does Art. 15 apply to Filipinos merely?
• Yes. Regardless of the place a Filipino citizen will be governed by Philippine
laws with respect to his or her family rights and duties, or to his or her status,
condition and legal capacity
• If a Filipino, regardless of whether he or she was married here or abroad,
initiates a petition abroad to obtain an absolute divorce from his spouse
(whether Filipino or foreigner) and eventually becomes successful, the PH
will not recognize such absolute divorce. Why?
12

 o Article 26 of the Family Code, the only absolute divorce which the
PH recognizes is one which is procured by the alien spouse of the
Philippine citizen
• No: in the sense that nationals of other countries are also considered by us
as being governed in matters of status, etc., by their own national law
. situated in the PH even if the stockholders do not reside here
Capacity to Enter into Ordinary Contract
• The capacity to enter into an ordinary contract is governed by the national
law of the person, and not by the law of the place where the contract was
entered into (lex loci celebrationis)
Capacity to Enter into Other Relations
• Capacity to enter into other contracts is not necessarily governed by the
national law of the person concerned. Thus:
• Capacity to acquire, encumber, assign, donate or sell property depends on
the law of the place where the property is situated (lex situs or lex rei sitae).
(Art 16 of Civil)
• Capacity to inherit depends not on the national law of the heir, but on the
national law of the decedent. (Art. 1039, Civil).
• Capacity to get married depends not on the national law of the parties, but
on the law of the place where the marriage was entered into (lex loci
celebrationis or locus regit actum), subject to certain exceptions.
Article 16. Real property as well as personal property is subject to the law of
the country where it is situated.
However, intestate and testamentary successions, both with respect to the
order of succession and to the amount of successional rights and to the
intrinsic validity of testamentary provisions, shall be regulated by the national
law of the person whose succession is under consideration, whatever may be
the nature of the property and regardless of the country wherein said property
may be found. (10a)
Conflicts Rules on Property (Lex Rei Sitae)
• Property, whether real or personal, is as a rule governed by the lex rei sitae
(law of the place where the property is situated) MAXIM
• Under the old Civil Code (Art. 10) personal property was subjected to the
law of the nation of the owner; i.e., personal property followed the national or
domiciliary law of the owner, under the doctrine of mobilia sequuntur
personam. Now that there has been a great increase in the amount and
variety of personal property not immediately connected with the person of
the owner
• It is inevitable that the rule should be thus for real property, for after all, real
property is attached to the land, and a contrary rule may render a judgment
on the land ineffective or incapable of enforcement.
Applications of the Doctrine of Lex Rei Sitae


• Shares of stock of a foreigner, even if personal property, can be taxed in the
PH so long as the property is located in this country
• Bank deposits in the PH even if belonging to a foreigner may be the subject
of attachment proceedings.
• Taxes may be imposed on dividends from shares in a gas corporation
Exception to the Lex Situs Rule
• Occurs in the case of successional rights. Thus, the following matters are
governed, not by the lex situs, but by the national law of the deceased
o Order of succession.
o Amount of successional rights. (refers to the amount of property
that each heir is legally entitled to inherit).
o Intrinsic validity of the provisions of a will. (Ex: whether a
disinheritance has properly been made or not; whether a
testamentary disposition can be given effect or not.).
o Capacity to succeed. (Art. 1039, Civil Code).
• In country X, even recognized illegitimate children are not allowed to inherit.
A citizen of country X dies in the PH, with some of his parcels of land
located in our country. Under our laws, recognized illegitimate children can
inherit. Will Y, a recognized illegitimate child of the deceased, be entitled to
inherit?
• ANSWER: No, because under the law of his father’s country, he has no right
to inherit. This is so even if the lands are found in the PH. What should
control is the national law of the deceased.
Defect of Art. 16, Par. 2 (Successional Rights)
• If a Filipino dies leaving lands in China, should the inventory of his estate
required by our courts include the lands in China?
• “Yes’’: we have to know the total value of his estate for eventual distribution
to his heirs. it is our law that should govern their disposition. This answer
would be all right, provided that Chinese courts would respect the decisions
of our courts. But what if NOT?
• The problem of possible unenforceability and ineffectiveness is precisely a
defect of the second paragraph. To eliminate the possibility of “no-
jurisdiction,’’ it can apply only to properties located in the Philippine
The Renvoi Problem
• Means referring back; the problem arises when there is a doubt as to
whether a reference in our law to a foreign law is a reference to the:
o INTERNAL law of said foreign law;
o WHOLE of the foreign law, including its conflicts rules.
• if one state involved follows the nationality theory, and the other, the
domiciliary theory, there is a possibility that the problem may be referred
back to the law of the first state.
Article 17. The forms and solemnities of contracts, wills, and other public
instruments shall be governed by the laws of the country in which they are
executed.
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When the acts referred to are executed before the diplomatic or consular
officials of the Republic of the PH in a foreign country, the solemnities
established by Philippine laws shall be observed in their execution.
Prohibitive laws concerning persons, their acts or property, and those which
have for their object public order, public policy and good customs shall not be
rendered ineffective by laws or judgments promulgated, or by determinations
or conventions agreed upon in a foreign country. (11a)
Doctrine of Lex Loci Celebrationis: EXTRINSIC VALIDITY
• law of the place of the ceremony
• extrinsic validity (forms and solemnities)
• a contact entered into by a Filipino in Japan will be governed by Japanese
law insofar as form and solemnities of the contract are concerned
• if a power of attorney is executed in Germany, German laws and not our
Civil Code should determine its formal validity.
Formalities for the Acquisition, Encumbering, or Alienation of Property
• Formalities for the acquisition, encumbering and alienation of property
(whether real or personal) shall however, be governed not by the lex loci
celebrationis but by the lex rei sitae.
ACTS BEFORE DIPLOMATIC AND CONSULAR OFFICIALS (Rule of
Exterritoriality)
• Any act or contract made in a foreign country before diplomatic and consular
officials must conform with the solemnities under Philippine law. Why?
• The host country where such diplomatic or consular officials are assigned,
by rules of international law, waives its jurisdiction over the premises of the
diplomatic office of another country located in the said host country.
• Marriages between two Filipinos solemnized by a consular official abroad
must be made following Philippine laws
• The theory is that the act is being done within an extension of Philippine
territory (the principle of exterritoriality).
PROHIBITIVE LAWS
• a foreign law, contract, or judgment can be given effect. The reason is that
public policy in the PH prohibits the same
• Any Filipino who procures an absolute divorce abroad will remain, in the
eyes of Philippine law, as not having been divorced.
Article 18. In matters which are governed by the Code of Commerce and special
laws, their deficiency shall be supplied by the provisions of this Code. (16a)
Rule in Case of Conflict Between the Civil Code and Other Laws
• In case of conflict with the Code of Commerce or special laws, the Civil
Code shall only be suppletory, except if otherwise provided for under the
Civil Code. In general, in case of conflict, the special law prevails over the
Civil Code, which is general in nature.
o When the action of a plaintiff against a shipowner is upon a civil
tort, Art. 2180 of the Civil Code applies; but when the case involves


tortious conduct resulting in maritime collision, it is a maritime tort,
and the liability of the shipowner is governed by the provisions of
the Code of Commerce.
o Under the Veterans Guardianship Act, RA 390 (a special law),
guardianship of a minor terminates only upon reaching the age of
21 (age of majority is now 18), not upon marriage. Therefore, in a
case involving monetary benefits from the Veterans’ Act, the
special law must prevail.
SUPPLETORY NATURE
Enriquez v. Sun Life AssuranceCompany of Canada
A applied for a life annuity. The insurance company accepted, and intended to mail
its acceptance, but never actually mailed the same. So the applicant never received
the letter of acceptance.
• The SC held that there was no perfection of a life annuity because there was
no acceptance of the contract.
• The SC applied the rules on contracts under the Civil Code in view of the
absence of any provision in the Insurance Act (deals w/ life insurance)
relative to the manner by which a contract is perfected.
• The special law on the subject of insurance is deficient in enunciating the
principles governing acceptance, the subject-matter of the Civil Code, if
there be any, would be controlling.
• Art. 1262 (Civil code) “Consent is shown by the concurrence of offer and
acceptance with respect to the thing and consideration which are to
constitute the contract. An acceptance made by letter shall not bind the
person making the offer except from the time it came to his knowledge."
• The legislature having enacted a new law on insurance, and expressly
repealed the provisions in the Code of Commerce on the same subject, and
having thus left a void in the commercial law, it would seem logical to make
use of the only pertinent provision of law found in the Civil Code, closely
related to the chapter concerning life annuities.
• The Civil Code rule that an acceptance made by letter shall bind the person
making the offer only from the date it came to his knowledge
• We hold that the contract for a life annuity in the case at bar was not
perfected because it has not been proved satisfactorily that the acceptance
of the application ever came to the knowledge of the applicant.
Ang v. American Steamship Agencies, Inc.
• the word “loss” in Section 3(6) of the Carriage of Goods by Sea Act is
determinable under the concept given to it by the Civil Code in accordance
with Article 18 (Civil code)
• Not all deficiency in the Carriage of Goods by Sea Act can be supplied by
the Civil Code
Dole PH, Inc. v. Maritime Co. of the PH
• The SC rejected the contention of the petitioner that the one-year
prescriptive period for making a claim for loss or damage under
Sec. 3, p. 6 of the Carriage of Goods by Sea Act was tolled by
making an extrajudicial demand pursuant to Article 1155 (Civil
Code) which should be applied in a suppletory nature pursuant to
Article 18.
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 • we now hold that in such a case the general provisions of the new
Civil Code (Article 1155) cannot be made to apply, as such
application would have the effect of extending the one-year period
of prescription fixed in the law.
• It is desirable that matters affecting transportation of goods by sea
be decided in as short a time as possible; the application of the
provisions of Article 1155 of the new Civil Code would
unnecessarily extend the period and permit delays in the
settlement of questions affecting transportation, contrary to the
clear intent and purpose of the law.
• However, for suits not predicated upon loss or damage but on alleged
misdelivery or conversion of the goods, the applicable rule on prescription is
that found in the Civil Code, namely, either ten years for breach of a written
contract or four years for quasi-delict, and not the rule on prescription in the
Carriage of Goods by Sea Act.
When the Civil Code is Superior
Common carriers. The Code of Commerce supplies the deficiency. (Art. 1766, Civil
Code).
Insolvency . The special laws supply the defi ciency. (Art. 2237, Civil Code).
The Case of Usury
• In case of conflict, the new Civil Code applies. (Art. 1961,). But under
another article, the new Civil Code inconsistently says that in case of
conflict, usurious transactions are governed by special laws. (Art. 1175, Civil
Code
• However, where the SC held that “for sometime now usury has been legally
non-existent; interest can now be charged as lender and borrower may
agree upon.’’
• Rule in Statutory Construction
o General rule is that the special law governs in case of conflict.
Chapter 2 HUMAN RELATIONS
Why the Code Commission Formulated a Chapter on Human Relations
• to present some basic principles that are to be observed for the rightful
relationship between human beings and the stability of the social order. The
lawmaker makes it imperative that everyone duly respect the rights of others
• The new provisions in this Chapter can be given retroactive effect, pursuant
to Arts. 2252, 2253 and 2254 of the Civil Code.
• Liability for damages under Arts. 19, 20 and 21 arises only from unlawful,
willful or negligent acts that are contrary to law, or morals, good customs or
public policy.
• (Art. 19, 20, & 21) - related - an act which causes injury to another may be
mad the basis for an award of damages.
• (common element) Art. 19 & 21 - the act must be intentional.
Article 19. Every person must, in the exercise of his rights and in the
performance of his duties, act with justice, give everyone his due, and observe
honesty and good faith.


HONESTY AND GOOD FAITH, ACTS CONTRARY TO LAW, AND AGAINST
MORALS, GOOD CUSTOMS AND PUBLIC POLICY.
• Art. 19 sets certain standards which may be observed not only in the
exercise of one’s rights but also in the performance of one’s duties.
(STRESS OF THE ART.)
a. to act with justice;
b. to give everyone his due;
c. to observe honesty and good faith
• The law recognizes the primordial limitation on all rights
• rights must never be abused; the moment they are abused, they cease to be
right
• A right, though by itself legal because recognized or granted by law as such,
may nevertheless become a source of some illegality
• When a right is exercised in a manner which results in damage to another, a
legal wrong is thereby committed for which the wrongdoer must be held
responsible.
• While it is true that a person who is aggrieved may have recourse against
the person or entity responsible, still if a person has not been damaged in
any way by another’s act, the former has no cause of action against the
latter
• The elements of an abuse of right under Art. 19 are the following:
i. There is a legal right or duty;
ii. which is exercised in bad faith;
iii. for the sole intent of prejudicing or injuring another
Acting with Justice and Giving Another His Due
• This is elaborated in the following articles, among others:
o Art. 20 — indemnification of another due to illegal acts
o Art. 21 — indemnification due to immoral acts
o Art. 24 — unfair competition
o Art. 22 — unjust enrichment
Observance of Honesty and Good Faith
• This is elaborated in the following articles
o Art. 26 — respect for the personality and dignity of others
o Art. 25 — restraint of undue extravagance
o Art. 31 et seq. — independent civil actions
• Honesty: careful regard for other’s rights and property.
• Good faith: honest intention to avoid taking undue advantage of another
• On the other hand, mere bad judgment or negligence does not necessarily
mean bad faith. There must be a dishonest purpose or some moral obliquity
and conscious doing of wrong.
Anonymous Complaints
• Although the SC does not as a rule act on anonymous complaints, cases
are excepted in which the charge\ (concealment of the pendency of a
criminal case by a person at the time he applied for appointment to the
judiciary) can be fully borne by public records of indubitable integrity, thus
needing no corroboration by evidence to be offered by complainant, whose
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 identity and integrity can hardly be material where the matter involved is of
public interest.
Effect of a Plea for Social Justice
• The law on obligations and contracts cannot be nullifi ed just because of a
plea for social justice. To so nullify is beyond the power of the courts.
• Social justice provisions in the 1973 Constitution cannot defeat the law on
obligations and contracts, and cannot take away rights from a person and
give them to another who is not entitled thereto. Surely, this is beyond the
power of the courts to grant.
Effect of a Veiled Threat on Dispensers of Justice
• To subject justices to the threat of an investigation or prosecution for offi cial
acts is to subvert their independence.
Law and Equity
• equity follows the law. There may be a moral obligation, often regarded as
an equitable consideration (meaning compassion) but if there is no
enforceable legal duty, the action must fail although the disadvantaged party
deserves commiseration or sympathy. Justice is done according to law
Sexual Harassment Is About Power Exercised By a Superior Over a
Subordinate
• “Sexual harassment’’ in the workplace is not about a man taking advantage
of a woman by reason of sexual desire — it is about POWER being
exercised by a superior over his women subordinates.
• RA 7877 on the Anti-Sexual Harassment Act of 1995 allows for an
independent action for damages and other affirmative relief.
Article 20. Every person who, contrary to law, willfully or negligently causes
damage to another, shall indemnify the latter for the same.
• pervades the entire legal system, and renders it impossible that a person
who suffers damage because another has violated some legal provision,
should find himself without relief (1947 Code Committee)
Willful or Negligent Acts
• does not distinguish: the act may be done either “willfully,” or “negligently” in
the law of torts or quasi-delicts — “Whoever by act or omission causes
damage to another, there being fault or negligence, is obliged to pay for the
damage done
• Negligence has been defi ned as the failure to observe for the protection of
the interests of another person that degree of care, precaution and vigilance
which the circumstances.
• Acts resulting from negligence may vary in nature, extent, and resulting
consequences. This is why, particularly in criminal cases, courts are given
greater leeway or discretion in imposing the proper penalty, and are not
bound to mathematical formulas for the lowering of degrees of penalty.
Torts
o The Spanish tort — based on negligence.
o And the American tort — based on malice.


Development Bank of the PH v. Court of Appeals
• Malice or bad faith is at the core of said provision. Good faith is assumed
• Good faith refers to the state of the mind which is manifested by the acts of
the individual concerned. It consists of the intention to abstain from taking an
unconscionable and unscrupulous advantage of another.
• Bad faith - a breach of known duty due to some motives or interest or ill-will
that partakes of the nature of fraud.
• Malice connotes ill-will or spite and speaks not in response to duty. It implies
an intention to do ulterior and unjustifiable harm. Malice is bad faith or bad
motive.
When No Action for Damages Would Prosper
• If someone be damaged, he does not necessarily have the right to be
indemnified. It is essential that some right of his be impaired.
• The judiciary has no power to reverse an award of the board of judges of an
oratorical contest, even if the decision be erroneous. “Error” and “wrong” do
not mean the same thing.
o “Wrong” as used in the legal principle that where there is a wrong
there is a remedy, is the deprivation or the violation of a right.
When Judiciary Can Interfere in Decisions of Religious Tribunals
Fonacier v. Court of Appeals
• However, civil courts cannot pass upon the abandonment of faith by a
member of the church nor upon restatement of articles of religion since
these are unquestionably ecclesiastical matters which are outside the
province of the civil courts
Courts Cannot Just Set Aside Rules
• As long as the standards fi xed are reasonable and not arbitrary, courts are
not at liberty to set them aside. Schools cannot be required to adopt
standards which barely satisfy criteria set for government recognition.
Article 21. Any person who willfully causes loss or injury to another in a
manner that is contrary to morals, good customs or public policy shall
compensate the latter for the damage.
• (Art. 21) it was designed to fill in the “countless gaps in the statutes, which
leave so many victims of moral wrongs helpless, even though they have
actually suffered material and moral injury”
o Ex. A’ seduces the nineteen year-old daughter of ‘X.’ A promise of
marriage either has not been made, or cannot be. The girl
becomes pregnant. Under the present laws, there is no crime, as
the girl is above eighteen years of age. Neither can any civil action
for breach of promise of marriage be filed.
o But under the proposed article, she and her parents would have
such a right of action.
o This example given by the Code Commission is correct, provided
that the man had in some way defrauded or deceived the girl (not
necessarily “seducing’’ her, as the term is used under the Revised
Penal Code).
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 o But if the two of them had engaged in illicit relations out of mutual
carnal lust, then it is believed that there can be no recovery of
damages, since both parties are at fault.
Willful Acts Contrary to Morals
• Would not this proposed article obliterate the boundary line between
morality and law?
o the last analysis every good law draws its breadth of life from
morals, from those principles which are written with words of fire in
the conscience of man.
o When it is reflected that while codes of law and statutes have
changed from age to age, the conscience of man has remained
fixed to its ancient moorings
• (Art. 21) deals with acts contra bonus mores, and has the following
elements:
o There is an act which is legal;
o but which is contrary to morals, good customs, public order, or
public policy;
o and it is done with intent to injure
• It presupposes loss or injury, material or otherwise, which one may suffer as
a result of such violation
• One cannot be held liable for damages and to malicious prosecution unless
he acted without legal or probable cause
• “Misconduct’’ implies a wrongful intention and not a mere error of judgment.
• Art. 21 was intended to expand the concept of torts in this jurisdiction by
granting adequate legal remedy for the untold number of moral wrong which
is impossible for human foresight to specifically provide in the statutes.
• The allegation of malice or ill-will does not bring the case under Art. 21
which can only apply in the absence of contractual stipulations.
o In a corporation, the by-laws govern the relations of the members,
not Art. 21
Article 21 Distinguished from Article 20
• Art. 21 — The act is contrary to morals, good customs, or public policy.
o In Art. 20 — The act is contrary to law.
• Art. 21 — The act is done wilfully. “Willful’’ may mean not merely voluntarily
but with a bad purpose.
o Art. 20 — The act is done either willfully or negligently
Can There Be An Action for Breach of Promise to Marry?
• For the recovery of actual damages, yes
Gashem Shookat Baksh v. Court of Appeals
• To formally set a wedding and go through and spend for all the wedding
preparations and publicity, only to walk out of it when the matrimony was
about to be solemnized, is palpably and unjustifiably contrary to good
customs for which the defendant must be held answerable for damages in
accordance with Art. 21
Recovery of Moral Damages
• the SC held that there can be no recovery of moral damages for a breach of
promise to marry, AS SUCH, the omission in the Civil Code of the proposed
Chapter on Breach of Promise Suits is a clear manifestation of legislative
intent not to sanction as such.


• However, if there be seduction, moral damages may be recovered under
Art. 2219, par. 3, of the Civil Code.
• The Court, however, implied that if there be moral seduction as
distinguished from criminal seduction, there MAY BE a grant of moral
damages, possibly under Art. 21
• That where a man’s promise to marry is in fact the proximate cause of the
acceptance of his love by a woman and his representation to fulfill that
promise thereafter becomes the proximate cause of the giving of herself
unto him in a sexual congress, proof that he had, in reality, no intention of
marrying her and that the promise was only a subtle scheme or deceptive
device to entice or inveigle her to accept him and to obtain her consent to
the sexual act, could justify the award of damages pursuant to Article 21 not
because of such promise to marry but because of the fraud and deceit
behind it and the willful injury to her honor and reputation which followed
thereafter.
o It is essential that such injury should have been committed in a
manner contrary to morals, good customs or public policy.
• The pari delicto rule does not apply in this case for while indeed, the private
respondent may not have been impelled by the purest of intentions, she
eventually submitted to the petitioner in sexual congress not out of lust, but
because of moral seduction.
o She is not, therefore, in pari delicto with the petitioner
• Pari delicto - “in equal fault; in a similar offense or crime"
o At most, she is merely in delicto
BAR EXAMPLES
• A, a married man, and B, an unmarried woman, entered into a written
agreement to marry each other when A becomes a widower. After becoming
a widower, A married another woman. Can B sue A for breach of promise?
• No, insofar as moral damages are concerned. Had there been carnal
knowledge, the matter would even be worse. Thus, it has been held that a
promise of marriage founded on carnal intercourse has an unlawful
consideration, and no suit on such promise can possibly prosper.
In an action based on a breach of promise to marry, what rights has the
aggrieved party in cases:
A. When there has been carnal knowledge… the aggrieved party may:
• Ask the other to recognize the child, should there be one, and give support
to said child. sue for moral damages, if there be criminal or moral seduction,
but not if the intercourse was due to mutual lust.
• if the CAUSE be the promise to marry, and the EFFECT be the carnal
knowledge, there is a chance that there was criminal or moral seduction,
hence, recovery of moral damages will prosper. If it be the other way
around, there can be no recovery of moral damages, because here mutual
lust has intervened
• However, moral damages may be recovered by the girl if the man, in his
effort to make the girl withdraw a suit for support of the child, deliberately
calls the attention of the girl’s employer to her condition as an unwed mother
• Sue for ACTUAL damages, should there be any, such as the expenses for
the wedding preparations.
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 B. When there has been NO carnal knowledge… there may be an action for
actual and moral damages under CERTAIN conditions, as when there has
been a deliberate desire to infl ict loss or injury, or when there has been an
evident abuse of a right
Cabrera v. Agustin
• If a lawyer has carnal knowledge of a poorly educated girl, promises to
marry her to continue his carnal satisfaction, and then breaks his promise on
account of an expensive wedding which the parents of the girl insist upon,
may he be disbarred?
• Yes, for he has not maintained the highest degree of morality & integrity,
which at all times is expected of and must be possessed by a member of the
bar
Breach of Promise of Employment
• In order that an action for breach of promise of employment may succeed,
nothing short of an actual, clear, and positive promise on the part of the
prospective employer must be shown by competent evidence
Claim for Damages When Victim Is at Fault
• Art. 21 must be construed as granting the right to recover damages only to
injured persons who are not themselves at fault
• If a man defaults in the payment of his light bills, he cannot successfully
bring an action for moral damages if the electric company should temporarily
disconnect his light facilities.
Nominal Damages
• Nominal damages are granted for the vindication or recognition of a right
violated or invaded, and not for the purpose of indemnifying the plaintiff for
any loss suffered by him. And this is so even if actual damages be not
proved
Effect of Price Increases
• Although it is of judicial notice that prices and costs of materials and labour
have substantially increased since 1970, it is not fair to give material men
and laborers four times the value of what they had furnished or constructed.
It is sufficient to give them 12% interest per annum from the time they fi led
their complaint.
Sexual Harassment; Anti-Sexual Harassment Act
• RA 7877, Anti-Sexual Harassment Act, is an act declaring sexual
harassment unlawful in the employment, education or training environment.
• Sexual harassment is committed (2) kinds of environments, namely:
o work-related
o education or training
• Aside from the penalties that may be imposed (in the form of imprisonment
and/or fine) the victim of work, education, or training-related sexual
harassment cases is not precluded “from instituting a separate and
independent action for damages and other affirmative relief.”


Art. 22. Every person who through an act of performance by another, or any
other means, acquires or comes into possession of something at the expense
of the latter without just or legal ground, shall return the same to him.
Duty to Return What Was Acquired Unjustly or Illegally
• UNJUST ENRICHMENT. No person can claim what is not validly and legally
his or hers
• No person should unjustly enrich himself at the expense of another. (Nemo
cum alterius detrimento protest).
• However, that when property is obtained by virtue of a final judgment of a
court, Art. 22 cannot apply
• MAXIM: Nemo ex alterius incommode debet lecupletari (“No man ought to
be made rich out of another’s injury”).
• Accion in Rem Verso- is an action for unjust enrichment. The plaintiff should
show that enrichment was bestowed, that the enrichment caused an
impoverishment, that there is no justification for the enrichment and
impoverishment, and that the plaintiff has no other adequate remedy at law,
including no remedy under an express or implied contract.
• EX. A owed B a sum of money evidenced by a promissory note. At maturity,
A paid, and a receipt was given him. When later on he was again asked to
pay, he could not find the receipt, so to avoid trouble he paid again.
Subsequently, he found the missing receipt. Can he now get back what he
had intentionally (but unwillingly) paid?
o ANSWER: Yes, w/c treats of an accion in rem verso.
Essential Requisites of an “Accion in Rem Verso’’
1. One party must be enriched and the other made poorer.
2. There must be a casual relation between the two.
3. The enrichment must not be justifiable (so if the law itself allows the
enrichment, or if the enrichment results from a contract or from the
impoverished person’s own negligence, there can be no recovery).
4. There must be no other way to recover (so if, for example, a tort action or a
quasi-contract action is proper, it is not necessary to file a claim in rem
verso).
5. The indemnity cannot exceed the loss or enrichment, whichever is less.
• It should be noted that in an accion in rem verso, as in the first example
given, there was no mistake; in the quasi-contracts of solutio indebiti (undue
payment, Art. 2154) it is essential that there be a mistake.
Art. 23. Even when an act or event causing damage to another’s property was
not due to the fault or negligence of the defendant, the latter shall be liable for
indemnity if through the act or event he was benefited.
Duty to Indemnify Because of Benefit Received
• Indemnity - The right of an injured party to claim reimbursement for its loss,
damage, or liability from a person who has such a duty.
• Unless there is a duty to indemnify, unjust enrichment will occur.
• Ex. Without A’s knowledge, a flood drives his cattle to the cultivated
highland of B. A’s cattle are saved, but B’s crops are destroyed. True, A was
not at fault, but he was benefited. It is but right and equitable that he should
indemnify B
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Art. 24. In all contractual, property or other relations, when one of the parties is
at a disadvantage on account of his moral dependence, ignorance, indigence,
mental weakness, tender age or other handicap, the courts must be vigilant for
his protection.
Reason for the Courts’ Protection of the Underdog
• “PARENS PATRIAE” means “father or parent of his country.”- refers to the
sovereign power of the state in safeguarding the rights of person under
disability.
• Were the law always to be applied strictly, there would be danger that
injustice might arise (summun jus, summa injuria). The State as parens
patriae is under the obligation to minimize the risk to those who because of
their minority, are as yet unable to take care of themselves fully
• COURT VIGILANCE. The courts must render justice and, therefore, they
must be very vigilant in protecting the rights of the disadvantaged with the
end in view that any decision will be in consonance with what is right and
legal
PD 603 the Child and Youth Welfare Code, eff. beginning six months from Dec.10,
1974
• Art. 63. Financial Aid and Social Services to Needy Families.— Special
financial or material aid and social services shall be given to any needy
family, to help it maintain the child or children in the home and prevent their
placement elsewhere. The amount of such aid shall be determined by the
Department of Social Welfare, taking into consideration, among other things,
the self-employment of any of the family members.
• Art. 64. Assistance to Widowed or Abandoned Parent and Her Minor
Dependents. — The State shall give assistance to widowed or abandoned
parent or where either spouse is on prolonged absence due to illness,
imprisonment, etc. and who is unable to support his/her children.
• Art. 65. Criterion for Aid. — The criteria to determine eligibility for the aid
mentioned in the next two preceding articles shall be:
o the age of the child or children,
o the financial condition of the family
o the degree of deprivation of parental care and support, and
o the inability to exercise parental authority
• Art. 66. Assistance to Unmarried Mothers and Their Children. — Any
unmarried mother may, before and after the birth of her child, seek the
assistance and advice of the Department of Social Welfare or any duly
licensed child placement agency. The said agencies shall offer specialized
professional services which include confidential help and protection to such
mother and her child, including placement of the child for adoption whenever
warranted, and enforcement of such mother’s rights, if any, against the
father of such child.].
Meaning of “Vigilant for His Protection”
• in case of doubt, the doubt must be resolved in favor of the underdog
• in labor contracts, doubts are resolved in favor of the decent living and
safety of the worker.


• Workmen’s Compensation Act being a social legislation designated to give
relief to labor in case of injury, its provisions should be given a liberal
interpretation in order to fully carry into effect its beneficient provisions.
Doubts as to the right of the laborers to compensation should be resolved in
his favor.
• If undue influence intervenes in a will, the will is void; if in a contract, the
contract is voidable.
• CONTRACTS OF ADHESION- almost all the provisions have been drafted
only by ONE party, usually a corporation, because the only participation of
the other party is the signing of his signature or his “adhesion” thereto.
o Ex. Insurance contracts, bills of lading, contracts for the sale of lots
on the installment plan
o to protect the rights of the other party, courts must construe
obscurities or ambiguities in the contract strictly AGAINST the
corporation or company.
• Art. 1332 (Civil Code)- when one of the parties (to a contract) is unable to
read, or if the contract is in a language not understood by him, and mistake
or fraud is alleged, the person enforcing the contract must show that the
terms thereof have been fully explained to the former
o the burden of proof is not on the illiterate party.
Inadmissibility of Confessions Obtained Thru Coercion
• A confession obtained thru coercion, whether physical, mental, or emotional
is inadmissible.
• essential for a confession’s validity is that it proceeds from the free will of the
person confessing.
• Courts should be slow in accepting such confessions unless corroborated by
other testimony.
• Constitutional provisions on the matter of extrajudicial confessions must be
observed.
Some Rules on Labor
• The former Court of Industrial Relations was empowered to allow or order
the employer to give a retirement gratuity to the employees as long as the
reward is reasonable and compatible with the employer’s right to a
reasonable profit on its capital.
o Thus, also, the Court has the duty of inquiring into the question of
how much the company can afford to give.
• Laborers contracted “temporarily” or without any designated time or period
of time previously determined, or for an unspecified work, have the right to
be notified one month ahead that their services would no longer be
necessary to their employers.
o The laborers shall have the right in case of immediate dismissal to
the salary corresponding to said month. Any waiver by the laborer
of these privileges is null and void.
• It would be unfair labor practice for an employer to prohibit his employees
and laborers from joining a mass demonstration against alleged police
abuses.
• The right to fire employees must not be abused.
• But a casual worker does not enjoy the benefits of the Workmen’s
Compensation Law
19

 • The absence of any specific evidence of a work-connection cause of an
injury is NOT necessarily fatal to a claim for compensation under the
Workmen’s Compensation Act, if death occurred in the course of
employment
o In the absence of any evidence as to the cause of death, the
presumption or inference is that death arose in view of the
employment
Phil. Long Dist. Tel. Co. v. Phil. Long Dist. Tel. Workers’ Union, et al.
• No. While an employer can ordinarily choose and fire employees without
interference, this right should not be abused or exercised capriciously, with
reference to a worker who has worked faithfully and satisfactorily with a
defect visible and known
Chu v. NLRC
• MANAGEMENT PREROGATIVES- inherent in the management of business
enterprises. These are acts by which one directing a business is able to
control the variables thereof so as to enhance the chances of making a
profit. freedom to administer the affairs of a business enterprise such that
the costs of running it would be below the expected earnings or receipts
Victorina A. Cruz v. CA, et al.
• Personnel action denotes the movement of personnel in the civil service and
includes appointment through certification, promotion, transfer,
reinstatement, re-employment, detail, reassignment, demotion, and
separation. All personnel actions shall be in accordance with such rules,
standards, and regulations as may be promulgated by the CSC (Civil
Service Commission).
• DEMOTION- is the movement from one position to another involving the
issuance of an appointment with diminution in duties, responsibilities, status,
or rank which may or not involve reduction in salary.
Art. 25. Thoughtless extravagance in expenses for pleasure or display during a
period of acute public want or emergency may be stopped by order of the
courts at the instance of any government or private charitable institution.
Reason for Curtailing Thoughtless Extravagance
• EXTRAVAGANCE DURING EMERGENCY. The law seeks to prevent
inconsiderate and ostentatious activities during times of emergency.
However, Article 25 specifically provides for the entities which are given
legal standing to seek an injunction: any government or private charitable
institution
• Thoughtless extravagance during emergencies may incite the passions of
those who cannot afford to spend.
Who Can Bring the Action?
• Only a charitable institution (whether government or private) may bring the
action. The Mayor of a city, should he desire to stop an alleged display of
extravagance by a social organization cannot summarily order the stopping
all by himself. He has to ask for a court order. A Mayor cannot just take the
law into his own hands, no matter how noble or sincere his motive may be.
Art. 26. Every person shall respect the dignity, personality, privacy and peace


of mind of his neighbors and other persons. The following and similar acts,
though they may not constitute a criminal offense, shall produce a cause of
action for damages, prevention and other relief:
1. Prying into the privacy of another’s residence;
2. Meddling with or disturbing the private life or family relations of
another;
3. Intriguing to cause another to be alienated from his friends;
4. Vexing or humiliating another on account of his religious beliefs, lowly
station in life, place of birth, physical defect, or other personal
condition.
Duty to Respect Dignity and Privacy
• PROTECTION OF HUMAN DIGNITY. This Article enhances human dignity
and personality. Social equality is not sought, but due regard for decency
and propriety.
Remedies
i. An action for damages;
ii. An action for prevention;
iii. Any other relief.
• A civil action may be instituted even if no crime is involved, and moral
damages may be obtained
Scope
a. Prying into the privacy of another’s residence — includes by implication
respect for another’s name, picture, or personality except insofar as is
needed for publication of information and pictures of legitimate news value.
b. Meddling with or disturbing the private life or family relations of another —
includes alienation of the affections of the husband or the wife. (Thus, a girl
who makes love to a married man, even if there be no carnal relations,
disturbs his family life, and damages may therefore be asked of her.)
Intriguing against another’s honor (gossiping) is also included.
c. Intriguing to cause another to be alienated from his friends — includes
gossiping, and reliance on hearsay.
d. Vexing or humiliating — includes criticism of one’s health or features without
justifiable legal cause. Religious freedom does not authorize anyone to heap
obloquy and disrepute upon another by reason of the latter’s religion.
Art. 27. Any person suffering material or moral loss because a public servant or
employee refuses or neglects, without just cause, to perform his official duty
may fi le an action for damages and other relief against the latter, without
prejudice to any disciplinary administrative action that may be taken
Refusal or Neglect in the Performance of Official Duty
• RELIEF AGAINST PUBLIC OFFICIALS. A public official is supposed to be
an agent or at least a representation of the government and, therefore, the
law exacts on him or her an obligation to be very vigilant and just so that the
public can be assured that the government is truly effective in servicing their
needs. Any person, suffering from the refusal or neglect of any government
employee or public servant to perform his duties, is entitled to damages
20

 A. refers to a public servant or employee
o Taken from Art. 839 of the German Civil Code, the purpose of Art.
27 is to end the pabagsak or bribery system, where the public
official for some flimsy excuse, delays or refuses the performance
of his duty until he gets some kind of “pabagsak.”
o Presupposes that the refusal or omission of a public official to
perform his official duty is attributable to malice or inexcusable
negligence. In any event, the erring public functionary is justly
punishable under this Article for whatever loss or damage the
complainant [may] sustain
Three Kinds of Bribes:
a. The pabagsak — the gift given so that an illegal thing may be done.
b. The pampadulas — the gift given to facilitate or expedite the doing of a legal
thing.
c. The pampasalamat — the gift given in appreciation of a thing already done.
o An administrative case will generally be provisionally dismissed,
where a criminal case involving the same parties and the same
charges as those of the administrative case is sub judice (currently
under trial/judgment)
B. There must be refusal or neglect without just cause to perform (non-
feasance). (If duty is performed, Art. 27 does not apply)
C. The NAWASA Manager may be compelled by mandamus to perform the
acts required of him by a resolution of the NAWASA Board, thus he can be
ordered to execute deeds of sale (for lots in a housing project) if same is
authorized by Board Resolution
Examples
• A goes to a government office where B, an administrative clerk, instead of
attending to A (upon A’s request) just reads the newspaper. If A suffers
material or moral loss, B will be liable.
o If B refuses to perform his duty unless given a bribe, damages may
be asked of him in addition to the proper criminal and
administrative liabilities.
• A Chief of Police who, instead of giving legal assistance to the victim of an
assault, intimidates and harasses said victim, his father, and his witnesses is
liable for damages under Art. 27. This is so even if other remedies (such as
an administrative charge against the chief of police and the filing of a
criminal complaint with the office of the city attorney for such assault) are
also available to the victim
• a town mayor (and other officials) who consistently absents himself from
town council sessions, and refuses to act upon the minutes of sessions
conducted by the councilors present, and to sign the payrolls for the
councilors’ per diems at such sessions, can be liable under this Article for
refusal to do his duty
• A public officer cannot be regarded as personally liable to those injured as a
result of an act within the scope of his official capacity and performed in line
of duty. This is true whether the officer is a judicial, quasi-judicial or
executive official.
Applicability of the Civil Service Law
• applies to government-owned or controlled corporations


Art. 28. Unfair competition in agricultural, commercial or industrial enterprises
or in labor through the use of force, intimidation, deceit, machination or any
other unjust, oppressive or high-handed method shall give rise to a right of
action by the person who thereby suffers damages.
Reason for Preventing Unfair Competition
• Necessary in a system of free enterprise
• Democracy becomes a veritable mockery if any person or group of persons
by any unjust
• Unfair competition must be expressly denounced in this Chapter because
same tends to undermine free enterprise. While competition is necessary in
a free enterprise, it must not be unfair.”
Scope
• The Article speaks of UNFAIR COMPETITION in
o Agricultural enterprises
o Commercial enterprises
o Industrial enterprises
o Labor
• the following acts, among others, ARE NOT ALLOWED:
o A strike for trivial, unjust, or unreasonable cause
o A strike carried out thru force, intimidation or other unlawful means
o A strike in order to circumvent valid obligations entered into a
collective bargaining contract
o Cutthroat competition (where one is ready to lose if only to drive
somebody else out of business).
o The making of any false statement in the course of trade to
discredit the goods, business, or services of another
o The making of goods so as to deceive purchasers (and by
“purchasers,’’ the law means “ordinary or average purchasers’’ and
not necessarily “intelligent buyers’’
o Selling goods above the maximum prices set by the State
o A strike to obtain better terms and conditions of employment is a
legitimate labor activity recognized by law, and its legality does
NOT depend on the reasonableness of the demands. If they cannot
be granted, they should be rejected, but without other reasons, the
strike itself does not become illegal. Unfair labor practice acts may
be committed by the employer against workers on strike.
• There can be unfair competition even if the competing trademark is
registered.
• The registration may in some way of course lessen damages, showing as it
does, good faith prima facie, but this will not completely prevent an action for
damages, or for unfair competition
• A strike is not abandonment of employment and workers do not cease to be
employed in legal contemplation, simply because they struck against their
employer
Test of Unfair Competition
o Whether certain goods have been intentionally clothed with an appearance
which is likely to deceive the ordinary purchasers exercising ordinary care.
21


Art. 29. When the accused in a criminal prosecution is acquitted on the ground
that his guilt has not been proved beyond reasonable doubt, a civil action for
damages for the same act or omission may be instituted. Such action requires
only a preponderance of evidence. Upon motion of the defendant, the court
may require the plaintiff to file a bond to answer for damages in case the
complaint should be found to be malicious
If in a criminal case the judgment of acquittal is based upon reasonable doubt,
the court shall so declare. In the absence of any declaration to that effect, it
may be inferred from the text of the decision whether or not the acquittal is due
to that ground
CIVIL ACTION.
• Proof beyond reasonable doubt means that amount of proof which forms an
abiding moral certainty that the accused committed the crime charged. It is
not, therefore, absolute certainty.
o However, such degree of proof is more exacting than what is
needed in a civil case which is merely preponderance of evidence
• Preponderance of evidence means that, as a whole, the evidence adduced
by one side outweighs that of the adverse party
• If the guilt of the accused is not proven beyond reasonable doubt, a civil
action to prove the civil liability can still be fi led where only preponderance
of evidence is needed. The fact that the guilt was not proven beyond
reasonable doubt must be expressly stated in the criminal decision.
However, if it is not so expressly stated, it can be inferred from the decision
itself
Example of Civil Action After Acquittal In a Criminal Case
• A was accused of theft, but he was acquitted because his guilt had not been
proved beyond reasonable doubt. B, the offended party, can institute the
civil action for damages for the same act and this time, mere preponderance
of evidence is sufficient.
• An acquittal on the ground that the guilt of the defendant “has not been
satisfactorily established” is equivalent to one on reasonable doubt, and
does not preclude or prevent a civil suit under Art. 29
o Art. 29 does not speak of an independent civil action
• INDEPENDENT CIVIL ACTION is an action that is based upon the same
criminal act as in the case of Articles 32, 33, and 34. When the civil action is
based on the obligation not arising from the act or omission complained of
as a felony, such civil action being based upon an obligation not arising from
the criminal act but from a different source is not an independent civil action
within the meaning of Articles 32, 33, and 34. Article 31
Criminal and Civil Liabilities
• Art. 100 of our Penal Code, a person criminally liable is also civilly liable.
The two liabilities are separate and distinct from each other; the criminal
aspect affects the social order; the civil, private rights.
o One is for the punishment or correction of the offender, while the
other is for reparation of damages suffered by the aggrieved party.


• if the accused be acquitted because of prescription of the crime, he is
released only from criminal responsibility, not civil liability; otherwise, the
victim would be prejudiced
Conrado Buñag, Jr. v. CA and Zenaida B. Cirilo
• Criminal liability will give rise to civil liability ex delicto (from a wrong or
transgression) only if the same felonious act or omission results in damage
or injury to another and is the direct and proximate cause thereof. Hence,
extinction of the penal action does not carry with it the extinction of civil
liability unless the extinction proceeds from a declaration in a final judgment
that the fact from which the civil case might arise did not exist.
• In a criminal action, the state must prove its case by evidence which shows
the guilt of the accused beyond reasonable doubt, while in a civil action, it is
sufficient for the plaintiff to sustain his cause by preponderance of evidence
only
Reason for Art. 29
• Criminal liability is harder to prove than civil liability because the former
demands proof of guilt beyond reasonable doubt; the other, mere
preponderance of evidence
Rule in Tax Cases (Patanao Case)
Republic v. Pedro B. Patanao
• Pedro B. Patanao, an Agusan timber concessionaire, was prosecuted for
failure to file income tax returns and for non-payment of income tax. He was
ACQUITTED. Later, the government sued him civilly for the collection of the
tax due. Patanao alleges that the civil claim cannot prosper anymore
because
o He was already acquitted in the criminal case
o The collection of the tax was not reserved in the criminal action.
• HELD: Patanao must still pay said income taxes
o The acquittal in the criminal case is not important. Under the
Revised Penal Code, civil liability is the result of a crime; in the
Internal Revenue Code, civil liability arises first, i.e., civil liability to
pay taxes arises from the fact that one has earned income or has
engaged in business, and not because of any criminal act
committed by him.
 criminal liability comes only after failure of the debtor to
satisfy his civil obligation
o The collection of the tax could not have been reserved in the
criminal case — because criminal prosecution is not one of the
remedies stated in the law for the collection of the tax
Survival of the Civil Liability Depends on Whether the Same Can Be Predicated
on Sources of Obligations Other Than Delict
• Stated differently, the claim for civil liability is also extinguished together with
the criminal action if it were solely based thereon.
Art. 30. When a separate civil action is brought to demand civil liability arising
from a criminal offense, and no criminal proceedings are instituted during the
pendency of the civil case, a preponderance of evidence shall likewise be
sufficient to prove the act complained of.
22

 4. Art. 2177 — (quasi-delict or culpa aquiliana)
Civil Liability/Obligation Arising from an Unprosecuted Criminal Offense Distinctions
• Even if the civil obligation arose from a criminal offense, the required Elements of Quasi Delict:
quantum of evidence in a civil suit to claim such civil obligation is not proof 1. Damages suffered by the plaintiff
beyond reasonable doubt but merely preponderance of evidence 2. Fault or negligence of the defendant
• As in Art. 29, this Art. 30 does not speak of an independent civil action 3. Casual connection between the fault or negligence of the defendant’s act
• A accused B of stealing his (A’s) watch, and so he (A) brought a civil action and the damages incurred by the plaintiff
against B to get the watch and damages. If the fiscal institutes criminal 4. No pre-existing contractual relation between the parties
proceeding against B the civil case is suspended in the meantime (Rule 110, Differences between Crimes and Culpa Aquiliana
Revised Rules of Court), this case not being one of those for which there Crimes:
can be an independent civil action. But if the fiscal does not, then the civil 1. Crimes affected the public interest.
case continues, and here, a mere preponderance of evidence would be 2. Penal law punishes/ corrects the criminal act.
sufficient to enable A to recover 3. Only acts covered by Penal Law are punished
4. Guilt proven beyond reasonable doubt.
Art. 31. When the civil action is based on an obligation not arising from the act 5. Reservation to file separate civil action. No reservation, civil action is
or omission complained of as a felony, such civil action may proceed impliedly instituted in the criminal action.
independently of the criminal proceedings and regardless of the result of the 6. Employer’s liability is subsidiary.
latter Culpa Aquiliana:
1. Only private concern.
Civil Liability/Obligation Arising from Felony 2. Repairs the damage by indemnification.
• There are certain injuries which do not necessarily arise from the commis- 3. Covers all acts that are faulty or negligent.
sion of a crime. 4. Preponderance of evidence.
• DELICT- The act by which one person, by fraud or malignity, causes some 5. No reservation – it’s independent from crime.
damage or tort to some other. In its most enlarged sense, this term includes 6. Employer’s liability is solidary
all kinds of crimes and misdemeanors, and even the injury which has been Culpa Contractual
caused by another, either voluntarily or accidentally without evil intention; 1. Pre-existing obligation between the parties
but more commonly by delicts are understood those small offences which 2. Fault or negligence is incidental to the performance of the obligation
are punished by a small fine or a short imprisonment. 3. Defense of having exercised diligence of a good father of a family is not
• QUASI-DELICT- (quasi delictum), is the act of a person, who without available, just like in criminal action. Applied doctrine of Respondent
malignity, but by an inexcusable imprudence, causes an injury to another. Superior, or Master and Servant Rule.

Meaning of ‘Independent Civil Action’
• One that is brought distinctly and separately from a criminal case allowed for
considerations of public policy, because the proof needed for civil cases is
LESS than that required for criminal cases; but with the injunction in general
that success in financially recovering in one case should prevent a recovery
of damages in the other.
• bringing of the independent civil action is PERMISSIVE, not compulsory
• Article 31 of the Civil Code does not provide for an independent civil action
• When the civil action is based on an obligation not arising from the act or
omission complained of as a felony, such civil action may proceed
independently of the criminal proceedings and regardless of the result of the
latter states a self-explanatory rule different and distinct from that laid down
in Articles 32, 33 and 34
• Article 31 likewise applies to culpa contractual (Negligence is merely
incidental to the performance of an obligation already existing because of a
contract obligation already existing because of a contract)
Instances When the Law Grants an Independent Civil Action
1. Art. 32 — (breach of constitutional and other rights)
2. Art. 33 — (defamation, fraud, physical injuries)
3. Art. 34 — (refusal or failure of city or municipal police to give protection


Scope of Art. 31 (Obligation Not Arising from a Crime)
• Art. 31 contemplates a case where the obligation does not arise from a
crime, but from some other act — like a contract or a legal duty.
• It expressly provides that when the civil action is based upon an obligation
not arising from the act or omission complained of as a felony, such civil
action may proceed independently of the criminal proceedings and
regardless of the result of the latter. This provision evidently refers to a civil
action based, not on the act or omission charged as a felony in a criminal
case, but to one based on an obligation arising from other sources, such as
law or contract
Examples
• A civil action for recovery of government funds in the hands of a postmaster
can prosper independently of a charge of malversation, since in the first, the
obligation arises from law (ex lege), while in the second the obligation to
return the money arises ex delicto.
Effect of Acquittal in CIVIL CASE
• Where the civil case was based on the theory that the money involved was
used for the purchase of a lot, and the criminal complaint in turn alleges that
23

 the money was used not to purchase a lot but was in fact embezzled by the
accused, the dismissal of the civil action CANNOT constitute a bar to the
criminal suit for the two actions are entirely distinct from each other, and
may therefore be litigated upon independently
• The civil actions contemplated in Articles 31 and 2177 are not civil actions
ex delicto. Moreover, said articles by themselves, authorize the institution of
a civil action for damages based on quasi-delict which may proceed
independently of the criminal proceeding for criminal negligence and
regardless of the result of the latter
Where Civil Liability Survives
People v. Bayotas
• A private offended party need not fear a forfeiture of his right to file this
separate civil action by prescription, in cases where during the prosecution
of the criminal action and prior to its extinction, the private offended party
instituted together therewith the civil action. In such case, the statute of
limitations on the civil liability is deemed interrupted during the pendency of
the criminal case, conformably with provisions of Article 1155 of the Civil
Code, that should thereby avoid any apprehension on a possible
privatization of right by prescription
Art. 32. Any public officer or employee, or any private individual, who directly
or indirectly obstructs, defeats, violates or in any manner impedes or impairs
any of the following rights and liberties of another person shall be liable to the
latter for damages:
1. Freedom of religion;
2. Freedom of speech;
3. Freedom to write for the press or to maintain a periodical publication
4. Freedom from arbitrary or illegal detention
5. Freedom of suffrage
6. The right against deprivation of property without due process of law;
7. The right to a just compensation when private property is taken for
public use
8. The right to the equal protection of the laws
9. The right to be secure in one’s person, house, papers, and effects
against unreasonable searches and seizures
10. The liberty of abode and of changing the same
11. The privacy of communication and correspondence
12. The right to become a member of associations or societies for
purposes not contrary to law
13. The right to take part in a peaceable assembly to petition the
Government for redress or grievances
14. The right to be free from involuntary servitude in any form
15. The right of the accused against excessive bail
16. The right of the accused to be heard by himself and counsel, to be
informed of the nature and cause of the accusation against him, to
have a speedy and public trial, to meet the witnesses face to face, and
to have compulsory process to secure the attendance of witness in his
behalf


17. Freedom from being compelled to be a witness against one’s self, or
from being forced to confess guilt, or from being induced by a promise
of immunity or reward to make such confession except when the
person confessing becomes a State witness
18. Freedom from excessive fines, or cruel and unusual punishment,
unless the same is imposed or inflicted in accordance with a statute
which has not been judicially declared unconstitutional; and
19. Freedom of access to the courts
In any of the cases referred to in this article, whether or not the defendant’s act
or omission constitutes a criminal offense, the aggrieved party has a right to
commence an entirely separate and distinct civil action for damages, and for
other relief. Such civil action shall proceed independently of any criminal
prosecution (if the latter be instituted), and may be proved by a preponderance
of evidence.
The indemnity shall include moral damages. Exemplary damages may also be
adjudicated.
The responsibility herein set forth is not demandable from a judge unless his
act or omission constitutes a violation of the Penal Code or other penal statute.
Implementation of Constitutional Civil Liberties
• Civil Liberties generally refer “to those fundamental freedoms which,
historically associated with the bill of rights, aim at protecting the individual
against oppression through government action; they are the rights which are
deemed essential to any enlightened scheme of ordered liberty which
endows the individual with the dignity of man in the society of his equals.’’
• Civil Liberties Day “would serve to emphasize in phrases of wisdom and
admonition that liberty does not mean license, that rights involve duties, and
that freedom must be coupled with responsibility and self-restraint.’’
• Art. 32, which renders any public officer or employee or any public individual
liable in damages for violating the constitutional rights and liberties of
another, as enumerated therein, does not exempt military officials and
officers from responsibility
Jose Rizal College v. NLRC
• The “cardinal primary’’ requirements of due process in administrative
proceedings are:
(1) The right to a hearing which includes the right to present one’s case and
submit evidence to support thereof;
(2) The tribunal must consider the evidence presented;
(3) The decision must have something to support itself;
(4) The evidence must be substantial, which means such evidence as a
reasonable mind must accept as adequate to support a conclusion;
(5) the decision must be based on the evidence presented at the hearing, or
at least contained in the record and disclosed to the parties affected; (6) the
tribunal or body or any of its judges must act on its or his own independent
consideration of the law and facts of the controversy, and not simply accept
the views of a subordinate; and
24

 (6) the board or body should in all controversial questions, render its
decisions in such manner that the parties to the proceeding can know the
various issues involved, and the reason for the decision rendered.
Additional Rights
• In addition to the Bill of Rights provisions, Art. 32 refers to
1. Freedom of suffrage (par. 5)
2. Freedom from being forced (coerced) to confess guilt, or from being
induced by a promise of immunity or reward to make such confession,
except when the person confessing becomes a state witness (par. 17)
Scope
• the following can be made liable
a. Any public officer or employee
b. Any private individual even if he be in good faith; the precise
purpose of the Article is to eliminate the defense of good faith,
otherwise the main reason for the Article would be lost
• But judges are not liable for any of their official acts, no matter how
erroneous, so long as they act in good faith, unless the act or omission is a
crime, because in the case of a crime, it is well known that a person
criminally liable is also civilly liable however, that while judges are expressly
exempted under Art. 32, it would seem that this exemption does not apply to
cases properly falling under Art. 27.
• May Commissioners of the Public Service Commission be held liable under
Art. 32? It would seem that the answer is YES, for the Commissioners “are
not judges in the true sense.”
• Art. 32 punishes not only direct and indirect violations of constitutional
liberties, but also their impairment
PARTICULAR WRONG OR INJURY
• The Supreme Court had occasion to discuss the applicability of Article 32 in
relation to public officers.
There are two kinds of duties exercised by public officers:
1. Of Duties to the Public. — The fi rst of these classes embraces those
officers whose duty is owing primarily to the public collectively — to the body
politic — and not to any particular individual; who act for the public at large,
and who are ordinarily paid out of the public treasury.
2. Of Duties to Individuals. – The second class above referred to includes
those who, while they owe to the public the general duty of a proper
administration of their respective offices, yet become, by reason of their
employment by a particular individual to do some act for him in an official
capacity, under a special and particular obligation to him as an individual.
They serve individuals chiefly and usually receive their compensation from
fees paid by each individual who employs them
• Whether a public officer is liable for an improper performance or non-
performance of a duty, it must first be determined which of the two classes
of duties is involved. The liability of a public officer to an individual or the
public is based upon and is co-extensive with his duty to the individual or the
public. If to the one or the other he owes no duty, to that one he can incur no
liability.


• when what is involved is a “duty owing to the public in general,” an individual
cannot have a cause of action for damages against the public officer, even
though he may have been injured by the action or inaction of the officer
• In performing or failing to perform a public duty, the officer has touched his
interest to his prejudice; but the officer owes no duty to him as an individual.
The remedy in this case is not judicial but political
• The exception to this rule occurs when the complaining individual suffers a
particular or special injury on account of the public officer’s improper
performance or non-performance of his public duty.
• an individual cannot have a particular action against a public officer without
a particular injury, or a particular right, which are the grounds upon which all
actions are founded
• Art. 32 allows a damage suit for “tort for impairment of rights and liberties.
• In tort law, for a plaintiff to maintain an action for damages for the injuries of
which he complains, he must establish that such injuries resulted from a
breach of duty which the defendant owed the plaintiff, meaning a
concurrence of injury to the plaintiff and legal responsibility by the person
causing it. Indeed, central to an award of tort damages is the premise that
an individual was injured in contemplation of law.
A cause of action exists if the following elements are present:
1. a right in favor of the plaintiff by whatever means and under whatever law it
arises or is created;
2. an obligation on the part of the named defendant to respect or not to violate
such right;
3. an act or omission on the part of such defendant violative of the right of the
plaintiff or constituting a breach of the obligation of defendant to plaintiff for
which the latter may maintain an action for recovery of damages.
Remedies
• The Article allows an independent civil action, whether or not a crime has
been committed, with indemnification for moral and exemplary damages in
addition to other damages. In the case of exemplary damages, award
thereof is discretionary with the Court.
Defendant in an Independent Civil Action to Safeguard Civil Liberties
• The defendant is not the state, but the public officer involved. Hence, the
consent of the state is not required
• It should be remembered, however, that where the State or its government
enters into a contract, thru its officers or agents, in furtherance of a
legitimate aim and purpose, and pursuant to constitutional legislative
authority, whereby mutual or reciprocal benefits accrue, and rights and
obligations arise therefrom, and if the law granting the authority does not
provide for or name the officer against whom action may be brought in the
event of a breach thereof, the State itself may be sued even without its
consent. WHY?
o By entering into a contract, the sovereign state has descended to
the level of the citizen, and its consent to be sued is implied from
the very act of entering into such contract.
Reason for the Creation of an Independent Civil Action under Art. 32
25

 • Sometimes the fiscal (prosecutor) is afraid to prosecute fellow public
officials, and the citizen may be left without redress. In most cases the threat
to freedom originates from abuses of power of government officials and
peace officers
• Even when the fiscal (prosecutor) files a criminal case, still said case
requires proof of guilt beyond reasonable doubt - often prevents the
appropriate punishment - a requirement much harder to comply with than
mere preponderance of evidence.
• There are many unconstitutional acts which are not yet made crimes. The
remedy for this is clearly a civil action.
GOOD FAITH NOT A DEFENSE
• The very nature of Article 32 is that the wrong may be civil or criminal. It is
not necessary therefore that there should be malice or bad faith. To make
such a requisite would defeat the main purpose of Article 32 which is that
effective protection of individual rights.
Art. 33. In cases of defamation, fraud, and physical injuries, a civil action for
damages, entirely separate and distinct from the criminal action, may be
brought by the injured party. Such civil action shall proceed independently of
the criminal prosecution, and shall require only a preponderance of evidence.
Independent Civil Action for Defamation, Fraud, & Physical Injuries of Art. 33
speaks of:
a) Defamation (or libel or slander or intrigue against honor)
b) Fraud (or estafa or swindling)
c) Physical injuries including consummated, frustrated and attempted
homicide), murder, parricide, infanticide — so long as there was physical
injury.
• The three terms — defamation, fraud, and physical injuries (DeFraP) — are
used in their generic significations. Therefore, although under the Revised
Penal Code “physical injuries” is distinguished from, say, attempted murder,
in that in the latter there is “an intent to kill,” a requirement not found in the
former, still Art. 33 can apply in the latter.
• Crimes referred to as “criminal negligence, that is, reckless imprudence” or
“offenses of criminal negligence” under Art. 365 of the Penal Code such as
crimes formerly known as “homicide thru reckless imprudence” or “physical
injuries thru reckless imprudence” do not fall under the purview of Art. 33
• Since they are caused by “culpa aquiliana,” can there not be an independent
civil action for them under Art. 2177 read together with Art. 2176 of the Civil
Code?
o the crimes resulting from negligence (e.g., “homicide thru reckless
imprudence” should really be called “offenses of criminal
negligence” because the penalty is always the SAME. Thus, what
the law punishes is the negligent or careless act, not the result
whether the result be arson, or homicide, or physical injuries, etc.).
RATIONALE
• is to allow the citizen to enforce his rights in a private action brought by him,
regardless of the action of the State attorney.


• While the State is the complainant in the criminal case, the injured individual
is the one most concerned because it is he who has suffered directly. He
should be permitted to demand reparation for the wrong which peculiarly
affects him.
For Whose Benefit, Restrictions
• Art. 33 is more for the benefit of the claimant or victim than anybody else.
Nevertheless, if he files a civil case under Art. 33, the victim can no longer
intervene in the prosecution of the criminal case
o The same rule applies if he had expressly reserved his right to file
an independent civil action
Libel or Defamation Cases
• To determine whether a news story is libelous or not, we must consider not
only the headline but also the entire news story.
• Newspapers should be given such leeway and tolerance as to enable them
to courageously and efficiently perform their important rule in our
democracy. They have to race with deadlines, and consistently with good
faith and reasonable care, they should not be held to account to a point of
suppression for honest mistakes or imperfection in the choice of words
The Issue with Rule 111 of the Revised Rules of Court
• Under the provisions of the Civil Code, there are certain special cases
where the law authorizes civil and criminal cases simultaneously and
independent of each other. So that the criminal action should be instituted
first and/or subsequently the civil action may be instituted first.
• drafters of Rule 111 added in Section 2 thereof the phrase “provided the
right is reserved as required in the preceding section.” But under the Civil
Code, there is no need for reservation.
o the trouble is, Section 1 of Rule 111 which says that the civil action
is deemed instituted with the criminal action unless it is reserved
expressly
• Rule 111 is procedural in nature. It does not involve substantive law, but
determines only where the action is to be brought. Now, if there is a conflict
between a rule of procedure and a provision of the Civil Code, it seems to
me that since the Supreme Court has the authority to promulgate rules of
procedure then these rules will prevail being on procedural matters.
o If there is a conflict between the procedural law and the Civil Code
on the matter, I think the rule of procedure should prevail.
Is There Any Necessity of Reserving the Civil Aspect of the Criminal Case
• First Query — If Y files a CIVIL case against X (for damages as a result of
the injuries) and during its pendency a criminal case is fi led against X,
should the civil case be suspended in the meantime?
• Second Query — If the CRIMINAL case had been brought first, may the civil
case be brought either during the former’s pendency or later EVEN
WITHOUT A RESERVATION?
o With respect to the first query (where the CIVIL case is brought
AHEAD of the CRIMINAL case), there is no doubt that the civil
case will not be suspended. This rule as found in Art. 33 is clear.
26

 • May the Supreme Court, under its rule-making power, virtually amend the
provisions of the Civil Code, by insisting that the right to institute an
independent civil action (once a criminal suit has been brought) be
dependent on the reservation of such right (a reservation not demanded
under the Civil Code)? May the Supreme Court validly require, under the
Revised Rules of Court, a “reservation” to be made in a criminal case before
an “independent civil action” may be brought?
o is the “reserving” procedural or substantive? If the former, the
authority of the Court cannot be doubted; if the latter, the
Constitution has certainly been contravened.
o substantive law creates, defines, and regulates rights as opposed
to “adjective or procedural” law which provides the method of
enforcing and protecting such rights, duties, and obligations as are
created by substantive law.
o it was ruled that the creation of a right of action is “substantive”
while the means or method of enforcement of the right is
“procedural.’ Thus, it may be argued that the Court is well within its
rights for it would seem that the requirement of the “reservation” is
merely PROCEDURAL, and not substantive in character
o The right to the “independent civil action” is given by the Civil Code
and how that right may be availed of is enunciated in the Revised
Rules, i.e., the reservation must be made. While Congress can
create a right, the Supreme Court can, under our constitutional
framework, ordain the exact manner in which that right may be
enforced
• The right to the “independent civil action” is given by the Civil Code and how
that right may be availed of is enunciated in the Revised Rules, i.e., the
reservation must be made. While Congress can create a right, the Supreme
Court can, under our constitutional framework, ordain the exact manner in
which that right may be enforced.
The following may be considered a brief resume of the doctrines promulgated by our
Supreme Court before the Revised Rules became effective
• “The independent civil action of damages arising from physical injuries
under Art. 33 may be brought by the offended party even if he had not
reserved the right to file the same in the criminal case for the same injuries.
• The result of the criminal case, whether acquittal or conviction, would be in
such a case, entirely irrelevant to the civil action.
• Indeed to subordinate the civil action contemplated in said Articles (Arts. 31,
32, 33, 34, 2177) to the result of the criminal prosecution whether it be
conviction or acquittal would render meaningless, the independent character
of the civil action, and the clear injunction in Art. 31 that this action ‘may
proceed independently of the criminal proceeding and regardless of the
result of the latter.’
• Art. 33 uses the words ‘may be,’ implying that the institution of the suit is
optional. Thus, if the offended party in libel intervenes in the prosecution of
the criminal cases through a private prosecutor, he will be deemed to have
waived the civil action, if he failed to make a reservation therefor.
• if the court did not enter a judgment for civil liability because the offended
party failed to submit evidence of damage, and there is no motion for
reconsideration or appeal, the judgment becoming final, this is clearly the
fault of the offending party or his counsel. The judgment becomes res


judicata, (a matter [already] judged ) and an independent civil action under
Art. 33 CANNOT be brought anymore.
• the only exception to the rule that Art. 33 gives a completely independent
civil action is when the offended party not only fails to reserve the right to file
a separate civil action but intervenes actually in the criminal case by
appearing through a private prosecutor for the purpose of recovering
indemnity for damages therein, in which case a judgment of acquittal BARS
a subsequent civil action.
o if in the criminal proceedings, the offended party DID NOT ENTER
any appearance, or INTERVENE in any other manner, an
independent civil action can prosper under Art. 33, if no civil liability
was adjudged in the criminal case. This is so even if there was no
reservation made.
Since the advent of the Revised Rules, the Court has had occasion to make use of
Art. 33 of the Civil Code, without however touching on the requirement of
“reservation” ordained under the Revised Rules.
• Art. 33 does NOT make any distinction as to whether the “injured party” who
may maintain the action for damages is a Filipino citizen, or an alien,
whether resident or not. Consequently, a non-resident alien plaintiff may
bring the independent civil action; and this is so even if there be in said case
a counterclaim brought against him
• It allows a recovery against the employee alone (not because a crime had
been committed but because a tortious act had been done); and Art. 2177
allows recovery against BOTH the employee and the employer (not again
because of a crime, but because of a quasi-delict or act of negligence), but
in such a case, the employer may exempt himself if he proves due diligence
in the selection and supervision of the employee.
• While a separate and independent civil action for damages may be brought
against the employee under Art. 33 of the Civil Code, no such action may be
filed against the employer on the latter’s subsidiary civil liability because
such liability is governed not by the Civil Code but by the Penal Code
What has been said of pleadings and appeals can, with equal vigor, apply to the
“reservation’’ referred to in the Revised Rules.
• The following citations are in order:
o One which operates as means of implementing an existing right is
valid as a procedural rule
o In an action in a federal court for injuries suffered in Kansas, the
right to recover is substantive, and is therefore controlled by
Kansas law, but how plaintiff is required to proceed, and in whose
name the action must be fi led is procedural
o The element of “notice” is generally not a substantive step but is
rather a procedural precaution.
o The amendment to a compensation act, which became effective on
July 1, 1939 providing that the right to file an application for
compensation shall be barred, where no compensation is paid
unless application is filed within one year after date of accident is a
“procedural change” relating to the remedy
• Concerning the contention that there is no need to make the reservation
since the law itself has already automatically effected such reservation
27

 suffice it to say that under our scheme of jurisprudence, a judicial decision
(or decisions), even by our Supreme Court, may be abrogated by it either by
a contrary ruling in a subsequent litigation or by simply amending its own
rules of procedure, as in the instant problem.
• The argument that judicial decisions are laws (when they apply or interpret
the laws or the Constitution) may be summarily dismissed for it is premised
on the misconception that the phrase “shall form part of the legal system of
the Philippines” in Art. 8 of the Civil Code converts said decisions into laws.
They are NOT laws
Some Decisions on the Matter
Crispin Abellana and Francisco Abellana v. Hon. Geronimo R. Maraue and Geronimo
Companer, et al.
• May a civil case still be brought despite the appeal in the criminal case?
Yes:
i. with the appeal, the original judgment of conviction was VACATED;
there will be a trial de novo in the CFI (now RTC), a trial that has
not even began, therefore, a reservation can still be made and a
civil action can still be allowed.
ii. to say that the civil action is barred because no reservation
(pursuant to Rule 111) had been made in the City Court when the
criminal suit was filed is to present a grave constitutional question,
namely, can the Supreme Court, in Rule 111 amend or restrict a
SUBSTANTIVE right granted by the Civil Code? This cannot be
done. The apparent literal import of the Rule cannot prevail.
iii. it would be UNFAIR, under the circumstances if the victims would
not be allowed to recover any civil liability, considering the damage
done to them
Art. 34. When a member of a city or municipal police force refuses or fails to
render aid or protection to any person in case of danger to life or property,
such peace officer shall be primarily liable for damages, and the city or
municipality shall be subsidiarily responsible therefor. The civil action herein
recognized shall be independent of any criminal proceedings, and a
preponderance of evidence shall suffice to support such action.
MEMBERS OF POLICE FORCE.
• It is the duty of police officers to see to it that peace and order are
maintained in the community. Hence, should a citizen go to them to seek
assistance, their failure or refusal to render the needed assistance to
maintain lawful order can be a basis for claiming damages against them.
The city or municipality shall be subsidiarily responsible therefor
Independent Civil Action for the Liability of City or Municipal Police Force
a) Primary liability is assessed against the member of the police force who
refuses or fails to render aid or protection
b) Subsidiary liability is imposed on the city or municipality concerned in case
of insolvency
• By virtue of this Article, the city or municipal government concerned can be
sued for its subsidiary liability. Incidentally, this Article does not grant to the
government the defense of due diligence in the selection and supervision of
the policemen


• Since Art. 34 speaks merely of a city or municipal police force it does not
Apply to the Philippine National Police (PNP) Force and to National
Government
Art. 35. When a person, claiming to be injured by a criminal offense, charges
another with the same, for which no independent civil action is granted in this
Code or any special law, but the justice of the peace finds no reasonable
grounds to believe that a crime has been committed, or the prosecuting
attorney refuses or fails to institute criminal proceedings, the complainant may
bring a civil action for damages against the alleged offender. Such civil action
may be supported by a preponderance of evidence. Upon the defendant’s
motion, the court may require the plaintiff to file a bond to indemnify the
defendant in case the complaint should be found to be malicious.
If during the pendency of the civil action an information should be presented by
the prosecuting attorney, the civil action shall be suspended until the
termination of the criminal proceedings.
Rule if No Independent Civil Action Is Granted
This Article applies to cases when there is no independent civil action (such as when
the liability sought to be recovered arises from a crime); and not to a tortious action
such as that provided for under Art. 33.
RESERVATION OF CIVIL ACTIONS.
• Rule 111 of the Rules of Court of the Philippines sets out the procedure with
respect to the reservations in criminal cases with respect to the civil liability
of the accused.
Section 1. Institution of criminal and civil actions. — Section 1. Institution of
criminal and civil actions.
• 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 his
right to institute it separately or institutes the civil action prior to the criminal
action.
• The reservation of the right to institute separately the civil action shall be
made before the prosecution starts presenting its evidence and under
circumstances affording the offended party a reasonable opportunity to
make such reservation.
• The criminal action for violation of Batas Pambansa Blg. 22 shall be deemed
to include the corresponding civil action. No reservation to file such civil
action separately shall be allowed
Section 2. When separate civil action is suspended
• After the criminal action has been commenced, the separate civil action
arising therefrom cannot be instituted until final judgment has been entered
in the criminal action
• If the criminal action is filed after the said civil action has already been
instituted, the latter shall be suspended in whatever stage it may be found
before judgment on the merits
28

 Section 3. When civil action may proceed independently.
• In the cases provided in Articles 32, 33, 34 and 2176 of the Civil Code of the
Philippines, the independent civil action may be brought by the offended
party. It shall proceed independently of the criminal action and shall require
only a preponderance of evidence. In no case, however, may the offended
party recover damages twice for the same act or omission charged in the
criminal action
Section 4. Effect of death on civil actions
• The death of the accused after arraignment and during the pendency of the
criminal action shall extinguish the civil liability arising from the delict.
However, the independent civil action instituted under section 3 of this Rule
or which thereafter is instituted to enforce liability arising from other sources
of obligation may be continued against the estate or legal representative of
the accused after proper substitution or against said estate, as the case may
be.
• If the accused dies before arraignment, the case shall be dismissed without
prejudice to any civil action the offended party may file against the estate of
the deceased.
Section 5. Judgment in civil action not a bar
• A final judgment rendered in a civil action absolving the defendant from civil
liability is not a bar to a criminal action against the defendant for the same
act or omission subject of the civil action.
Art. 36. Prejudicial questions, which must be decided before any criminal
prosecution may be instituted or may proceed, shall be governed by rules of
court which the Supreme Court shall promulgate and which shall not be in
conflict with the provisions of this Code.
PRECEDENCE
The general rule is that where both a civil and a criminal case arising from the same
facts are fi led in court, the criminal case takes precedence.
Exception: if there exist prejudicial questions which should be resolved first before
action could be taken in a criminal case and when the law provides that both civil and
criminal case can be instituted simultaneously such as that provided in Art. 33
Definition of a ‘Prejudicial Question’
• one which must be decided first before a criminal action may be instituted or
may proceed because a decision therein is vital to the judgment in the
criminal case.
o It must be determinative of the case before the Court; (the
previously instituted civil action involves an issue similar or
intimately related to the issue raised in the subsequent criminal
action)
o Jurisdiction to try said question must be lodged in another tribunal;
(the resolution of such issue determines whether or not the criminal
action may proceed)
• for a civil case to be considered prejudicial to a criminal action as to cause
the suspension of the latter pending the final determination of the former, it
must appear not only that the civil case involves the same facts upon which
the criminal prosecution would be based, but also that in the resolution of
the issues raised in said civil action, the guilt or innocence of the accused
would necessarily be determined


Requisites of Prejudicial Questions
• the civil case involves facts intimately related to those upon which the
criminal prosecution would be based
• in the resolution of the issue or issues raised in the civil actions, the guilt or
innocence of the accused would necessarily be determined; and
• jurisdiction to try, said question must be lodged in another tribunal
Examples
1. A was lawfully married to B. At the point of a gun, A was threatened if he
would not marry C. So A married C. Out of jealousy, B asked the fiscal to file
bigamy charges against A, who had in the meantime asked that the second
marriage be annulled in view of the intimidation committed on him. Should
the criminal action proceed at once?
a. No. For the decision in the civil case would affect A’s criminal
liability, and this therefore is a prejudicial question
2. A was forced to marry B. A then sued for annulment. During the pendency of
the case, A married C. When C learned of the fi rst marriage, C complained
to the fiscal who now sued A for bigamy. A alleges that the pendency of the
annulment proceedings is a prejudicial question. Is he correct?
a. A is wrong because the decision in the annulment case is not
important. The first marriage will be either annulled or not. If not
annulled, bigamy can prosper; if annulled, still bigamy can prosper,
for when he married the second time, he was still married to his first
wife, a voidable marriage being considered valid until it is annulled.
b. A case for annulment of marriage can be considered as a
prejudicial question to the bigamy case against the accused only if
it is proved that the petitioner’s consent to such marriage was
obtained by means of duress, violence, and intimidation in order to
establish that his act in the subsequent marriage was an
involuntary one and as such the same cannot be the basis for
conviction
c. A prejudicial question usually comes into play in a situation where a
civil action and a criminal action may proceed, because howsoever
the issue raised in the civil action is resolved would be
determinative juris et de jure (conclusive presumptions of law,
which cannot be rebutted by evidence ) of the guilt or innocence of
the accused in a criminal case
d. The mere fact that there are actions to annul the marriages entered
into by the accused in a bigamy case does not mean that
“prejudicial questions’’ are automatically raised in civil actions as to
warrant the suspension of the criminal case
3. Other Instances of Prejudicial Questions
a. In a criminal case for damage to one’s property, a civil action that
involves the ownership of said property should first be resolved.
b. A civil action involving an obligation to pay wages is a prejudicial
question to a criminal prosecution for delay in the payment of such
wages
4. Instances of Non-Prejudicial Questions
a. The determination of title to land in a cadastral case is not
prejudicial question to a criminal case for falsification of a public
document filed against a notary public who allegedly falsified an
29

 affidavit that had been presented as evidence in the cadastral
proceeding
5. Previous Questions Distinguished from Prejudicial Questions
a. Not all previous questions are prejudicial, although all prejudicial
questions are necessarily previous
6. Nature of Our Courts
a. where the courts are vested with both civil and criminal jurisdiction,
the principle of the prejudicial question is to be applied even if there
is only one court before which the civil action and the criminal ac-
tion are to be litigated.
7. When Must the Suspension of the Criminal Case Alleged to be Prejudicial
Be Asked For?
a. A petition for suspension of the criminal action based upon the
pending of a prejudicial question in a civil action may be filed in the
officer of the prosecutor or the court conducting the preliminary
investigation
b. When the criminal action has been filed in court for trial, the petition
to suspend shall be filed in the same criminal action at any time
before the prosecution rests.
8. Who May Raise the Issue on Prejudicial Questions?
a. it is the defendant in a criminal case (and NOT the prosecution)
who can raise the issue of prejudicial questions. If the prosecution
presents evidence against the defendant the latter in his own
defense presents certain documents (the execution and validity of
which are still being threshed out in an appealed civil case), the
prosecution CANNOT ask for a suspension of the trial on the
ground that a prejudicial question is involved.
b. This is unfair to the defendant who should have the right to have
the criminal case terminated as soon as possible. In fact, the
prosecution, if it really believes that a prejudicial question is
involved should.
BOOK I. — PERSONS
Title I. CIVIL PERSONALITY
Chapter 1 GENERAL PROVISION
INTRODUCTORY COMMENTS
• Person — any being, natural or artificial, capable of possessing legal rights
and obligations.
• Two Kinds of Persons
o Natural persons — human beings created by God through the
intervention of the parents.
o Juridical persons — those created by law
Art. 37. Juridical capacity, which is the fitness to be the subject of legal
relations, is inherent in every natural person and is lost only through death.
Capacity to act, which is the power to do acts with legal effect, is acquired and
may be lost. (n)


• ‘Juridical Capacity’ (capacidad juridica )— the fitness to be the subject of
legal relations
• ‘Capacity to Act’ (capacidad de obrar; “facultas agendi.” )— the power to
do acts with legal effect.
• Definition of Full or Complete Civil Capacity — The union of the two
kinds of capacity (plena capacidad civil).
o Ex. A 1-year-old boy has juridical capacity but has no capacity to
act. When he becomes 18, he will have full civil capacity
Differences Between ‘Juridical Capacity’ and ‘Capacity to Act’
Juridical Capacity
1. Passive
2. Inherent
3. Lost only through death
4. Can exist without capacity to act
Capacity to Act
1. Active
2. Merely acquired
3. Lost through death and may be restricted by other causes
4. Exists always with juridical capacity
Art. 38. Minority, insanity or imbecility, the state of being a deaf-mute,
prodigality and civil interdiction are mere restrictions on capacity to act, and do
not exempt the incapacitated person from certain obligations, as when the
latter arise from his acts or from property relations, such as easements. (32a)
Restrictions on Capacity to Act
• The penalty of civil interdiction is given to a criminal punished by
imprisonment for 12 years and 1 day or more
1. Capacity to act, unlike juridical capacity, may be restricted or limited
2. Minority (below 18)
3. Insanity or imbecility
4. State of being a deaf-mute
5. Prodigality (the state of squandering money or property with a morbid desire
to prejudice the heirs of a person).
6. Civil interdiction (the deprivation by the court of a person’s right):
o To have parental or marital authority.
o To be the guardian of the person and property of a ward.
o To dispose of his property by an act inter vivos (he cannot donate,
for this is an act inter vivos (a gift that is made during the donor's
lifetime); but he can make a will, for this is a disposition mortis
causa).
o To manage his own property
Minority (17 YRS OLD and below)
• a minor needs parental consent before he can enter into an ordinary
contract. If he goes ahead without such consent, the contract is not however
void. It is merely voidable; that is, valid until annulled. Incidentally, it is wrong
to say that a minor has NO capacity to act; he has, but his capacity is
RESTRICTED.
• A minor cannot create a trust of any kind nor can he act as an executor or
administrator.
30

 • If at least 14 years of age, however, he must give his written consent to
make valid a legal adoption.
• If at least 18 years old, he can make a will or be a witness to one
• He may acquire property using the capital of his parents, said property to
belong to the latter in ownership
• “corruption of minors” refers to minors below 18
Insanity or Imbecility
• Insanity is a condition in which a person’s mind is sick. This is different from
monomania
• Imbecility is feeble-mindedness, or a condition in which a person
• thinks like a small child.
• If a person is under guardianship because of insanity, he is of course
presumed insane if he should enter into a contract. But this presumption is
only prima facie or rebuttable. If it can be shown that he was acting during a
lucid interval, the contract will be considered valid
State of Being a Deaf-Mute
• A deaf-mute may be sane or insane. If sane, prescription may run against
him
• He may make a will (Art. 807); but cannot be a competent witness to a
notarial will. (Art. 820).
Civil Interdiction
• The restrictions in Art. 38 do not extinguish capacity to act. They merely
restrict or limit the same. Thus, an insane person’s contract is merely
voidable, not void
• The incapacitated person is not exempt from certain obligations arising from
his acts
Art. 39. The following circumstances, among others, modify or limit capacity to
act: age, insanity, imbecility, the state of being a deaf-mute, penalty,
prodigality, family relations, alienage, absence, insolvency and trusteeship. The
consequences of these circumstances are governed in this Code, other codes,
the Rules of Court, and in special laws. Capacity to act is not limited on
account of religious belief or political opinion.
A married woman, twenty-one years of age or over, is qualified for all acts of
civil life, except in cases specified by law. (n)
Modifications or Limitations on Capacity to Act
• This Article enumerates other restrictions, like family relations and alienage.
It is broader that Art. 38, for while Art. 38 refers to restrictions on capacity to
act; Art. 39 includes not only the restrictions or limitations but also those
circumstances that modify capacity to act
• Ex. a father has generally full civil capacity and is not as such restricted
under Art. 38, however, precisely because he is a father, his capacity to


alienate his property is modified in the sense that he cannot impair the
legitime of his compulsory heirs
Family Relations
• A man cannot marry his mother, or sister, or even a first cousin.
• The fact that a man is the father of a family creates an obligation to give
support to his family and to give his children their legitime.
• Where no improper or unlawful motivation — such as the presence of a
personal grudge against the accused — is shown, mere blood or family
relationship with the victim does NOT render the clear and positive
testimony of witnesses less worthy of full faith and credit
Alienage
• An alien cannot generally acquire private or public agricultural lands,
including those residential in nature, except thru hereditary succession and
this prohibition extends to alien corporations, which cannot under the law
acquire ownership over said lands, even for a limited period of time.
• An alien cannot practice medicine or law, save in exceptional instances.
• He cannot vote or be voted for a public office nor can he engage in
coastwise shipping
Absence
• The fact that one has been absent for several years and his whereabouts
cannot be determined, subjects his property to administration by order of the
court although his capacity to act is not limited.
Married Woman
• A married woman, eighteen years of age or over, is qualified for all acts of
civil life, except in cases specified by law (par. 2)
• If the married woman be under 21 (now 18?), she is considered a married
minor. She therefore cannot dispose of or encumber her own real property
without parental consent. (Art. 399). If her husband is the guardian, his
consent is needed.
• The fact that a woman is a wife modifies her capacity to dispose of the
conjugal property or to bring an action, though her capacity to act is not
limited in the sense that a minor’s capacity is limited
Bar
• Juana married Pedro in 1947. Is her capacity to execute acts and contracts
governed by the new Civil Code?
• Yes, under Art. 2259 which provides that the capacity of a married woman to
execute acts and contracts is governed by the new Civil Code, even if her
marriage was celebrated under the former laws.
SIGNIFICANCE OF ARTICLES 38 AND 39
• to make an overview of the situation that qualifies a person’s power to
undertake acts which can produce legal effects
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Chapter 2 – Natural Persons
Article 40: Birth determines personality; but the conceived child shall be
considered born for all purposes that are favorable to it, provided it be born
later with the conditions specified in the following article.
Beginning of Personality
Personality does not begin at birth; it begins at conception.
This personality at conception is called presumptive personality.
Rule in Case of Abortive Infants
If a physician succeeds in aborting a foetus, the parents would normally be entitles
only to moral damages and to exemplary damages but NOT to actual damages
(injury to rights of the deceased, his right to life and physical integrity).
Newborn Screening Act
The “Newborn Screening Act of 2004” (RA 9288)
- became effective March 24,2004
- “it is the policy of the State to protect and promote the right to health of the
people, including the rights of children to survival and full and healthy development as
normal individuals…the State shall institutionalize a National Screening System that
is comprehensive, integrative and sustainable, and will facilitate collaboration among
government and non-government agencies of the national and local levels…The
National Screening System shall ensure that every baby born in the Philippines is
offered the opportunity to undergo newborn screening and, thus, be spared from
heritable conditions that can lead to mental retardation and death if undetected and
untreated.”
The Newborn Screening System includes (but not limited to):
1) education of relevant stakeholders
2) collection and biochemical screening of blood samples taken from newborns
3) tracking and confirmation testing to ensure the accuracy of screening results
4) clinical evaluation and biochemical/medical confirmation of test results
5) drugs and medical/surgical management and dietary supplementation to address
the heritable conditions
6) evaluation activities to assess long-term outcome
7) patient compliance
8) quality assurance
A parent or guardian may refuse the testing on the ground of religious belief.
Newborn – a child from the time of complete delivery to 30 days old
Article 41: For civil purposes, the foetus is considered born if it is alive at the
time it is completely delivered from the mother’s womb. However, if the foetus
had an intra-uterine life of less than seven months, it is not deemed born if it
dies within twenty-four hours after its complete delivery from the maternal
womb.
2 Kinds of Children:
1) Ordinary – with an intra-uterine life of at least seven months (mere birth is
sufficient here)
2) Extraordinary – if the intra-uterine life be less than seven months (the child must
have lived for at least 24 hours after its complete delivery from the maternal womb;
otherwise known as “premature”)


Article 42: Civil personality is extinguished by death.
The effect of death upon the rights and obligations of the deceased is
determined by law, by contract and by will.
Civil personality is extinguished by physical death.
Civil interdiction (civil death) merely restricts, not extinguishes, capacity to act.
Effect of death is determined by:
1) Contract
2) Will
Other legal effects of death:
1) the right to support ends
2) A marriage, whether voidable or valid, also ends.
3) The tenure of public office ends
4) If an individual dies, the property or estate left by him should be subject to the tax
in generally the same manner as if he were alive.
5) If a person dies after he has authorized another to sell the former’s property, the
sale after such death is not valid, if made by the agent with knowledge of the
principal’s death. This is true even if the buyer be in good faith.
Is a Person’s “Estate” a Person by Itself?
The “estate” of a deceased is a person that may continue the personality of the
deceased even after death.
Summons on the Dead
Summons by the court could not be validly served on a deceased. His juridical
capacity is lost the moment he dies.
Death extinguishes one’s criminal liability, but the proceedings should continue to
determine his civil liability.
Article 43: If there is a doubt, as between two or more persons who are called
to succeed each other, as to which of them died first, whoever alleges the
death of one prior to the other, shall prove the same; in the absence of proof, it
is presumed that they died at the same time and there shall be no transmission
of rights from one to the other.
Presumption on Survivorship under the Revised Rules of Court
When 2 persons perish in the same calamity, such as a wreck, battle, or
conflagration, and it is not shown who died first, and there are no particular
circumstances from which it can be inferred, the survivorship is presumed from the
probabilities resulting from the strength and age of the sexes, according to the
following rules:
1) if both were under the age of fifteen years, the older is presumed to have survived
2) if both were above the age of sixty, the younger is presumed to have survived
3) if one be under 15 and the other above 60, the younger is presumed to have
survived
4) if both be over 15 and under 60, and the sexes be different, the male is presumed
to have survived; if the sexes be the same, then the older.
5) if one be under fifteen or over sixty, and the other between those ages, the latter is
presumed to have survived
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Applicability of Civil Code Provision on Non-Survivorship
Article 43 applies when the case involves two or more persons who are “called to
succeed each other”.
Effects of Presence of Facts
This Article now the Rules of Court can apply when there are facts, known or
knowable. In such a case, the rule of preponderance of evidence controls.
Chapter 3 – Juridical Persons
Art. 44. The following are juridical persons: The State and its political
subdivisions; Other corporations, institutions and entities for public interest or
purpose, created by law; their personality begins as soon as they have been
constituted according to law; Corporations, partnerships and associations for
private interest or purpose to which the law grants a juridical personality,
separate and distinct from that of each shareholder, partner or member.
Juridical Person - a being of legal existence susceptible of rights and
obligations, or of being the subject of juridical relations.
State - a sovereign person with the people composing it viewed as an
organized corporate society under a government with the legal competence
to exact obedience of its commands.
- the political organization of a society legally supreme within and
independent of legal control from without
- the state can enter into treaties and contracts.
- In default of persons entitled to succeed to the estate of a deceased
person, the State shall inherit his whole estate (Article 1011 of the Civil
Code)
- fundamental rule: the state cannot be sued without its consent
(Article XVI, Section 2 of the 1987 Philippine Constitution).
o Express consent may be embodied in a general law or a
special law.
o Implied consent - when the governm ent enters into
business contracts, thereby descending to the level of the
other contracting party, and also when the State files a
complaint, thus opening itself to a counterclaim.
Suability – depends on the consent of the state to be sued
Liability – depends on the applicable law and the established facts
** The circumstance that a state is suable does not necessarily mean that
it is liable; on the other hand, it can never be held liable if it does not first
consent to be sued.
Political subdivisions - are municipal corporations and, in the Philippines,
consist of the provinces, cities and municipalities
Municipal corporations
- suable because their charters grant them the competence to sue
and be sued.
- generally not liable for torts committed by them in the discharge of
governmental functions and can be held answerable only if it can be
shown that they were acting in a proprietary capacity.


- exist in a dual capacity, and their functions are two-fold; should enjoy
the sovereign immunity from suit
1. They exercise the right springing from sovereignty, and
while in the performance of the duties pertaining thereto,
their acts are political and governmental.
o Their officers and agents in such capacity,
though elected or appointed by them, are
nevertheless public functionaries performing a
public service, and as such they are officers,
agents and servants of the state.
2. The municipalities exercise a private, proprietary or corporate
right, arising from their existence as legal persons and not as
public agencies.
o Their officers and agents in the performance of such
functions act in behalf of the municipalities in their
corporate or individual capacity, and not for the state
of sovereign power
Corporation - an artificial being created by operation of law, having the
right of succession and the powers, attributes, and properties expressly
authorized by law or incident to its existence (Section 2, Batas Pambansa Blg.
68).
Partnership - By the contract of partnership, two or more persons bind
themselves to contribute money, property, or industry to a common fund, with
the intention of dividing the profits among themselves. Two or more persons
may also form a partnership for the exercise of a profession (Article 1767 of
the Civil Code).
 Corporations, partnerships and associations for private interest and
purpose may be granted by law a juridical personality, separate and
distinct from that of each shareholder, partner or member. Hence, the
obligation of the corporation is not the obligation of the stockholders and
vice versa.
 Classification of Juridical Persons
Public juridical persons
1. Public corporations like the province and the city
2. T h e s t a t e i t s e l f
Private juridical persons
1. Private corporations
2. P a r t n e r s h i p s
3. F o u n d a t i o n s
 W h e n P e r s o n a lit y o f P r iv a t e J u r id ic a l P e r s o n s B e g in s
• from the moment a certificate of incorporation is granted
• certificate is issued upon filing the articles of incorporation
with the Securities and Exchange Commission.
• a corporation cannot be regarded as possessed of a
personality separate and distinct from its members - to allow
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 it would be to sanction the use of the fiction of corporate
identity as a shield to further an end subversive of justice.
• to organize a corporation or a partnership that could claim a
juridical personality of its own and transact business as
such is NOT a matter of absolute right but a PRIVILEGE
which may be enjoyed only under such terms as the State
may deem necessary to impose.
• a partnership, even if not registered is a juridical person,
provided that it has been validly constituted.
• a limited partnership, to be valid as such, must be registered
with the Securities and Exchange Commission.
 The Church
• The Roman Catholic Church in the Philippines is a person.
• It is an entity or person separate and distinct from the
personality of the Pope or the Holy See. The Roman Catholic
Church, or any of its corporation soles, duly incorporated in
the Philippines, can therefore acquire lands in our country.
Art. 45. Juridical persons mentioned in Nos. 1 and 2 of the preceding article are
governed by the laws creating or recognizing them.
Private corporations are regulated by laws of general application on the
subject.
Partnerships and associations for private interest or purpose are governed by
the provisions of this Code concerning partnerships. (36 and 37a)
 Determ ination of N ationality of Juridical Persons
• The nationality of a corporation is generally determined by
the place of its incorporation.
• Two exceptions to this rule:
1. For the grant of the rights in the Constitution to the
operation of public utilities, and for the acquisition of
land and other natural resources, a corporation, even if
incorporated here, cannot acquire said rights unless
60% of its capital be Philippine-owned.
2. During war, we may pierce the veil of corporate identity,
and go to the very nationality of the controlling stockhold-
ers regardless of where the incorporation had been
made. Thus a German-controlled corporation, even if
incorporated in the Philippines, was considered an enemy
corporation during the war for the purpose of freezing its
assets. A contrary rule may endanger Philippine
security.
Art. 46. Juridical persons may acquire and possess property of all kinds, as
well as incur obligations and bring civil or criminal actions, in conformity with
the laws and regulations of their organization. (38a)
Rights of Juridical Persons
(a) To acquire and possess property of all kinds.
(b) To incur obligations.


(c) To bring civil or criminal actions.
• A corporation being a juridical person, by itself can be held liable
without any personal liability on the part of the stockholders, still
said stockholders may be held for obligations contracted by the
corporation whenever circumstances have shown that the corporate
entity is being used as an alter ego (other self) or business conduit for
the sole benefit of the stockholders.
• A corporation is civilly liable in the manner as natural persons for
torts committed by its officers or agents.
• The fact that one or more corporations are owned and controlled by a
single stockholder is NOT sufficient for disregarding separate
corporate entities
Capacity to Acquire Lands
• A religious corporation not controlled by Filipinos cannot acquire
lands, otherwise alien religious landholdings in this country would
be revived.
• Roman Catholic Church in the Philippines can acquire lands.
• An American citizen, under the Parity Amendment, can acquire
lands in the Philippines, exploit our natural resources, and
operate public utilities, only if in his particular state in the
United States, Filipinos are granted RECIPROCAL parity rights.
A Non-Existent Corporation Cannot Sue
• The mere grouping together do not give corporate life to the
group formed. It cannot act as a corporation. Neither can it
create agents or exercise by itself authority in its behalf.
A Non-Existent Partnership Cannot Sue
• If a partnership does not lawfully exist, it cannot sue, but it may
be sued, otherwise third persons may be prejudiced.
Estoppel
• A person who contracts with a “corporation” cannot later deny its
personality.
• The person who represents himself as the agent of a non-existing
corporation cannot prevent the person who has been misled from
suing the “agent” personally, since a non-registered corporation
does not have a juridical personality.
A Dissolved Corporation
• Even if a corporation has been dissolved, it can still continue
prosecuting (as plaintiff) or defending (as a defendant) for the
next three years, thru its legal counsel, who may be considered
a “trustee” for this purpose.
34

Art. 47. Upon the dissolution of corporations, institutions and other entities for
public interest or purpose mentioned in No. 2 of Article 44, their property and
other assets shall be disposed of in pursuance of law or the charter creating
them. If nothing has been specified on this point, the property and other assets
shall be applied to similar purposes for the benefit of the region, province, city
or municipality which during the existence of the institution derived the
principal benefits from the same. (39a)

(1) Rule If Public Juridical Persons Are Dissolved

(a) This Article refers to public corporations or associations.
(b) H o w a s s e t s a r e t o b e d i s t r i b u t e d :
1) First apply the provisions of the law or charter creating them.
2) If there is no such provision, the assets will be for the benefit
of the place which was already receiving the principal benefits
during the existence of the corporation or association.
 Laws or charters governing the dissolutions of the following
corporations:
• Private corporations - Title IV of the Corporation Code.
• Corporations for public interest or purposes created by a charter -
in accordance with the provisions of their respective charters and in
the absence of any such provision, by the provision of the
Corporation Code.
• Partnership - Title IX, Chapter 3 of the Civil Code

(2) How a Corporation Can Exercise Its Powers and Transact

B usiness
• Only thru its board of directors, officers, and agents — when authorized
by a board resolution or its by-laws.

(3) Effect When a Corporation Is a Mere Alter Ego or Business

Conduit of a Person — Separate Personality of the Corporation
May be Pierced
• to warrant resort to the extraordinary remedy of piercing the veil of
corporate fiction, there must be proof that the corporation is being
used as a cloak or cover for fraud or illegality, or to work injustice.
• books and rewards of the corporation are, ordinarily, the best evidence of
corporate acts and proceedings.

Close corporation - organized for the purpose of running a family business

or managing family property; has formed the backbone of Philippine
Commerce and Industry.
• It should serve as a rallying point for family unity and prosperity not
as a flashpoint for familial strife
• concept of social contract - decision on the direction of the course
of the corporate business is vested in the board and not with courts


 35