Case Title: Lao Ichong vs Jaime Hernandez

G.R. No.: L-7995

Main Topic: Due Process of Law
Other Related Topic:
Date: May 31, 1957

DOCTRINES
Due Process of Law
FACTS
• Lao Ichong is a Chinese businessman who entered the country to take advantage of
business opportunities herein abound (then) – particularly in the retail business.

• For some time he and his fellow Chinese businessmen enjoyed a “monopoly” in the local
market in Pasay. Until in June 1954 when Congress passed the RA 1180 or the Retail
Trade Nationalization Act the purpose of which is to reserve to Filipinos the right to
engage in the retail business.

• Ichong then petitioned for the nullification of the said Act on the ground that it
contravened several treaties concluded by the RP which, according to him, violates the
equal protection clause (pacta sund servanda).

• He said that as a Chinese businessman engaged in the business here in the country who
helps in the income generation of the country he should be given equal opportunity

ISSUES
Whether or not the RA 1180 deny the equal protection of laws and the due process of law.

HELD
No. RA 1180 does not violate the equal protection clause nor the due process of law.

RATIONALE
The law does not violate the equal protection clause of the Constitution because sufficient
grounds exist for the distinction between alien and citizen in the exercise of the occupation
regulated, nor the due process of law clause, because the law is prospective in operation and
recognizes the privilege of aliens already engaged in the occupation and reasonably protects
their privilege. The wisdom and efficacy of the law to carry out its objectives appear to be
plainly evident — as a matter of fact it seems not only appropriate but actually necessary —
and that in any case such matter falls within the prerogative of the Legislature, with whose
power and discretion the Judicial department of the Government may not interfere. The
provisions of the law are clearly embraced in the title, and this suffers from no duplicity and has
not misled the legislators or the segment of the population affected.