For Printing CONFLICT

7/25/2019 For Printing CONFLICT

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*+e $t+ort of t+e #CGG to e!ter !to omprom"e $reeme!t" ! /& $"e" $!% to r$!t mm!t, !%er ert$! rm"t$!e", ! rm!$& $"e" " !o "ett&e% $!%

e"t$b&"+e%. 7! %epubli of t(e P(ilippines and !ose O. Campos, !r. "s. $andiganbayan, et al. -13 SCRA 2, [1989]), t+" Cort $teor$&& "t$te% t+$t $m$b&e

"ett&eme!t" $!% omprom"e" $re !ot o!& $&&oe% bt $t$&& e!or$e% ! /& $"e". A "pef r$!t of mm!t from rm!$& pro"eto!" $" $&"o ""t$!e%.

7! Benedito "s. Board of Administrators of #ele"ision $tations %P, BBC, and 'BC-20 SCRA 659 [1992]), t+e Cort r&e% t+$t t+e $t+ort of t+e #CGG to /$&%&

e!ter !to omprom"e $reeme!t" for t+e prpo"e of $/o%! &t$to! or ptt! $! e!% to o!e $&re$% omme!e% $" !%"pt$b&e. *+e Cort too o!>$!e of

t+e f$t t+$t t+e omprom"e $reeme!t ++ " !o t+e "bet of t+e pre"e!t petto!" $" pe!%! before t+e S$!%$!b$$! for %eterm!$to! $!% $ppro/$& $!%,

t+erefore, %"m""e% t+e petto! %rete% $$!"t t+e $reeme!t?" mp&eme!t$to! $!% e!foreme!t.

S!e t+" Cort "pef$&& or%ere% t+e S$!%$!b$$! to $t o! t+e omprom"e $reeme!t betee! t+e #CGG $!% Be!e%to, +$t rem$!" to be %o!e " to

$"ert$! t+e 1ro1riet4 o5 t,e a+tion o5 t,e Sandi0an*a4an in a11rovin0 t,e a0reement# and t,e validit4 o5 t,e a0reement itsel5%

*+e S$!%$!b$$! "t$te% ! t" %e"o! t+$t t+e o!tr$t o! t" f$e %oe" !ot $ppe$r to be o!tr$r to &$, mor$&", or pb& po& $!% t+$t t $" e!tere% !to free&

$!% /o&!t$r& b t+e p$rte" -p. 9, Ro&&o ! G.R. No. 108292). *+ere " !o !tm$to! of /t$te% o!"e!t o! t+e p$rt of t+e #CGG. ! t" f!%! t+$t t+e omprom"e

$reeme!t $" e!tere% !to b t+e p$rte" free&, /o&!t$r&, $!% t+ f&& !%er"t$!%! of t" o!"ee!e", re"po!%e!t ort "t$te% t+$t t+e $reeme!t " o!&"/e

$!% b!%! po! t.

Fe $ree t+ t+e fo&&o! ob"er/$to!" of t+e S$!%$!b$$!

1art4 t,at availed ,imsel5 o5 and +om1lied 2it, t,e 1rovisions o5 a 6/di+ial +om1romise is /nder esto11el to 7/estion its

validit4% -Serr$!o /". $/e, 13 SCRA 461). 7! $ reme of &$ $!% or%er, rep%$to! of $! $reeme!t /$&%& e!tere% !to $!!ot be

m$%e t+ot $! ro!% or re$"o! ! &$ or ! f$t for "+ rep%$to!. -Ro%re> /". A&p$&$, 5 SCRA 455).

7t " ! o!"ee!e" of t+" t+$t t+e Spreme Cort ! $$ /". Cort of Appe$&", 154 SCRA 309, +e&% t+$t a +om1romise /1on its

1er5e+tion *e+ame *indin0 /1on t,e 1arties and ,as t,e e55e+t and a/t,orit4 o5 res 6/di+ata even i5 not 6/di+iall4 a11roved%

-7t$&" "pp&e%).

7! t+" o!!eto!, t+erefore, Fe +o&% t+$t p&$!tff " ! e"toppe& to e"to! t+e /$&%t of t+e +ere! Comprom"e Areeme!t "!e t

+$% $&re$% ree/e% be!eft" t+ere!%er, "+ $"

;1.

D&& t$e o/er $!% o!tro& of re!t$& #etro&em "+$re" of "to" o!e% b #e%r$" !! $!% t+e

eer"e b t+e &$tter omp$! of t+e pre'empt/e r+t" r$!te% b re!t$& #etro&em. S$% "+$re" +$/e $ tot$&

/$&e nowof P),*+,-),/0+.**-#.065 $!% #.05per A $!% B "+$re", re"pet/e&.

2. D&& t$e o/er, o!tro& $!% m$!$eme!t of Bro$%$"t Ct -C+$!!e& 13) !"pte of Spreme Cort %e"o!

! G.A. No. L1-00)*t+$t t+e Bo$r% of A%m!"tr$to!, re$te% !%er Eet/e r%er No. 11, o!t!e% m$!$eme!t " !o

&o!er &e$&& po""b&e, po! form$& repre"e!t$to! $!% t+$t Be!e%to && omp& f&& t+ t+e term" $

Comprom"e Areeme!t. S$% $""et" +$/e $ tot$& e"tm$te% /$&e of #450 m&&o!.

3. Comp&ete tr!o/er of C$&for!$ /er"e$" B$!, t+ $pt$& $o!t of SH18 &&o

t+e #+&pp!e Go/er!me!t ++ $" ! tr! "o&% b t+e #+&pp!e Go/er!me!t to t+e #NB.

4. Reept of SH16.21 m&&o! -#386.0 m&&o! I #23.1H1.00). *+e tot$& /$&e of t+e

tr$!"ferre% to t+e #+&pp!e Go/er!me!t $mo!t to #2.336 B&&o!.;

7! J$tp!$!


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A!% ! Pasay City Go"ernment "s. C3' of Manila -132 SCRA 156 [1984]), $" mo"t emp+$t ! r&! t+$t $ p$rt to $ omprom"e $reeme!t $!!ot $" for t"

re"""o! $fter t +$" e!oe% t" be!eft". *+e! ="te, &$ter C+ef ="te $$"$r +$% t+" to "$ I

[7]t " ob/o" t+$t t+e re"po!%e!t'$ppe&&ee %% !ot o!& "ee% ! e!for! t+e omprom"e bt "$% p&$!tff'$ppe&&ee &e"e $!t" to

re"!% t+e "$% omprom"e. 7t " &e$r from t+e &$!$e of t+e &$, "pef$&& rti+le 3 .- to en5or+e t,e +om1romise or 3- to res+ind t,e same and insist /1on ,is ori0inal

demand%*+e re"po!%e!t'$ppe&&ee ! t+e $"e +ere! before " $!t" to $/$& of bot+ of t+e"e opto!". *+" $! !ot be %o!e. T,e

res1ondent?a11ellee +annot as: 5or res+ission o5 t,e +om1romise a0reement a5ter it ,as alread4 en6o4ed t,e 5irst o1tion o5

en5or+in0 t,e +om1romise *4 as:in0 5or a 2rit o5 e@e+/tion res/ltin0 t,ere*4 in t,e 0arnis,ment o5 t,e Pasa4 Cit4 5/nds

de1osited 2it, t,e P,ili11ine National Ban: 2,i+, event/all4 2as delivered to t,e res1ondent?a11ellee% (at 1% .A-%

7t " e$&& per&e for t+e #CGG to o!te!% t+$t t+e $reeme!t " o!e!t$&& %efet/e from t+e mere +$ppe!"t$!e t+$t t+e $reeme!t $" !ot $t+e!t$te%

before t+e o!"&$r off$&" $bro$% $!% t+ot t+e p$rtp$to! of t!e""e" $!% of t+e So&tor Ge!er$&. ,ile t,e r/le o5 lex loci celeborat ionis 0enerall4

0overns 5orms and solemnities o5 +ontra+ts /nder rti+le .D o5 t,e Civil Code ( Vitug

# Com1endi/m o5 Civil La2 and $/ris1r/den+e# .9A First ed%# 1% ..-#

t,e 1rin+i1l e o5 lex rei s itae 0enerall4 a11lies 2it, res1e+t to 5ormalities 5or t,e a+7/isition# en+/m*ran+e# and alienation o5 real and 1ersonal 1ro1ert4

-1 Paras, C/& Co%e of t+e #+&pp!e" $!!ot$te%, 1989 12t+ e%., p. 10). nd relative to t,i s 1re+e1t on lex sit us

# P,ili11ine s/*stantive la2 is +ertainl4 +lear on

t,e matter t,at +ontra+ts are o*li0ator4# in 2,atever 5orm t,e4 ma4 ,ave *een entered into# s/*6e+t to t,e e@isten+e o5 all t,e essential re7/isites 5or t,eir

validit4-Artile )/4, Ne C/& Co%e).

T,e 5a+t t,at t,e +om1romise a0reement 2as not a/t,enti+ated *e5ore t,e +ons/lar o55i+ers a*road# as 2ell as t,e

a*sen+e o5 2itnesses# +annot *e o5 m/+, le0al si0ni5i+an+e /nder P,ili11ine la2 inasm/+, as t,e re7/irement /nder rti+le .8(a- o5 t,e Civil Code# t,at

a +ontra+t intended to e@tin0/is, or transmit real ri0,ts over t,e immova*les m/st *e in a 1/*li+ do+/ment is merel4 desi0ned 5or 0reater e55i+a+4 or

+onvenien+e-4 #olentino, Comme!t$re" $!% =r"pr%e!e o! t+e C/& Co%e of t+e #+&pp!e", 1991 e%., p. 546).

Neit,er does t,e a*sen+e o5 t,e Soli+itor Generals 1arti+i1ation render t,e a0reement invalid sin+e /nder *ot, E@e+/tive Order No% 3 and E@e+/tive Order

No% .=?# it is t,e PCGG 2,i+, ,as *een ;primarily+,ar0ed; 2it, t,e res1onsi*ilit4 o5 re+overin0 ille0all4 a+7/ired or misa11ro1riated assets% It s,o/ld

1er,a1s *e re+alled at t,is 6/n+t/re t,at it 2as d/rin0 t,is 1eriod t,at t,e OSG 2it,dre2 as +o/nsel in PCGG +ases# +om1ellin0 t,e latter to ,ire ,i0,?

1ri+ed and s/11osedl4 +om1etent la24ers o5 its o2n% 7!%ee%, t+e"e e/e!t" ere t+e b$%rop of t+e %e& $&$me% $!% er%te %e"o! pe!!e% b ="te

D&er%$ Rt+ #. Romero +ere! t+e SG $" $%/"e% of t" %te", t+e "ope of t" $t+ort, t+e m$!%$te of t" offe, $!% t+e!e or%ere% to re'e!ter t" $ppe$r$!e

! #CGG $"e". 7! f!e, t+e SG " t+e &e$"t $&fe% $e! to r$"e t+e $rme!t t+$t t +$% !o p$rtp$to! ! t+e $reeme!t. ero rete!to! me!to!e% ! Seto! 2-$) of Eet/e r%er No. 1 +$% bee! modi5ied to re$%

FKEREAS, t+e #re"%e!t$& Comm""o! o! Goo% Go/er!me!t $" re$te% o! Debr$r 28, 1986 b Eet/e r

t+e #re"%e!t ! t+e reo"ery of ill1gotten wealt($m&$te% b former #re"%e!t Der%!$!% E. $ro", +" mme%$

"bor%!$te" $!% &o"e $""o$te"

++ !%obte%& "e"t" $ %ep$rtre from t+e former o$& of tot$& re"ttto!.

Co!tr$r to t+e #CGG?" ob"er/$to! t+$t t+e /$&e of t+e $""et" e%e% b Be!e%to "+o&% +$/e bee! ref&ete% ! t+e o!tr$t # Se

.=? does not seem to im1ose s/+, an element as a +ondition sine qua non to t,e validit4 o5 a 1ro6e+ted settlement% I

Benedi+tos assets need not *e stated in t,e 5o/r +orners o5 t,e a0reement sin+e ,is d/t4 to dis+lose all ,is 1ro1ert4 is s/

PCGG or to t,e Sandi0an*a4an 2,en +alled /1on to testi54 as a vital 2itness on ot,er ill?0otten 2ealt, +ases /nder Se+tio

"tre"" t+$t t+e series o5 ne0otiations 2,i+, +/lminated in t,e si0nin0 o5 t,e a0reement on Novem*er # .99< a55orded ever4

reveal ,is assetsfor t+e #CGG?" e/$&$to! ! o!!to! t+ t" e!er$& f!to! to o&&$te e/%e!e re&$t/e to &&'otte! e$&t+ - B

Co., 'n. "s. PCGG-150 SCRA 181 [198]).


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*+e f$t t+$t ert$! %et$&" pe&$r ! ot+er omprom"e $reeme!t", "+ $" t+o"e fo!% ! t+e Do!$er, R$>o! $!% D&ore!%o %e$&", $re !ot ref&ete% ! t+e

Be!e%to $reeme!t %oe" !ot me$! t+$t t+e "ett&eme!t " ""eptb&e to +$&&e!e, e"pe$&& "o +e! t+e #CGG t"e&f o!e%e" t+$t $! ftre $reeme!t !ee% !ot

fo&&o t+e p$tter! fe% ! pre/o" o!tr$t" -p. 33, #etto! p. 38, Ro&&o ! G.R. No. 108292).

*o "pport t+e t+e"" t+$t t+e $reeme!t per se" o!tr$r to &$, t+e #CGG "+ft" %"""o! to t+e "$&e!t porto!" of Repb& At No. 3019, t+e A!t'Gr$ft $!%

Corrpt #r$te" At, p$rt&$r& t+o"e t+ re"pet to $t" $&&ee%& $"! !%e !r to t+e o/er!me!t, re"&t! !to $ m$!fe"t& %"$%/$!t$eo" o!tr$t $!%

&e$%! to !$rr$!te% pr/&ee" -p. 35, #etto! p. 40, Ro&&o ! G.R. No. 108292). B/t t,ese ass/m1tions remain mere verisimilit/des# /ns/11orted *4

eviden+e t,at indeed t,e +ontra+t 2as entered into /nder +ir+/mstan+es 2,i+, 2o/ld invite reasona*le s/s1i+ion o5 *ad 5ait, on t,e 1art o5 t,ose 1riv4

t,ereto%Cd1r

*o b$tr$ from t+e effet" of t+e "ett&eme!t, t+e #CGG re&e" o! t+e pr!p&e t+$t t+e St$te " !e/er e"toppe% b $t" of t" $e!t", $" $pp&e% ! $"e" ++

rere !o t$to!, $!% $" $ffrme% b Seto! 15, Art&e 11 of t+e 198 Co!"ttto!

*+e r+t of t+e St$te to reo/er properte" !&$f&& $re% b pb& off$&" or emp&oee", from t+em or from t+er !om!ee" or

tr$!"feree", "+$&& !ot be b$rre% b pre"rpto!, &$+e", or e"toppe&.

e a0ree 2it, t,e statement t,at t,e State is imm/ne 5rom esto11el */t t,is +on+e1t is /nderstood to re5er to a+ts and mista:es o5 its o55i+ials es1e+iall4

t,ose 2,i+, are irre0/lar-$(arp 'nternational Mar5eting "s. Court of Appeals , 201 SCRA 299 306 [1991] %epubli "s. A6uino, 120 SCRA 186 [1983],

++ pe&$r

rm"t$!e" $re $b"e!t ! t+e $"e $t b$r. A&t+o+ t+e St$te?" r+t of $to! to reo/er &&'otte! e$&t+ " !ot /&!er$b&e to e"toppe&, t " non1se6uiturto "e"t

t+$t $ o!tr$t, free& $!% ! oo% f$t+ eete% betee! t+e p$rte" t+ereto " ""eptb&e to %"trb$!e ad infinitum. di55erent inter1retation 2ill lead to t,e

a*s/rd s+enario o5 1ermittin0 a 1art4 to /nilaterall4 6ettison a +om1romise a0reement 2,i+, is s/11osed to ,ave t,e a/t,orit4 o5 res judicata-Artile 7*/0,

Ne C/& Co%e), $!% &e $! ot+er o!tr$t, +$" t+e fore of &$ betee! pr/e" t+ereto -Artile1159, Ne C/& Co%e 8ernae2 "s. 9ao, 1 SCRA 296 [966]

6 Padilla, C/& Co%e $!!ot$te%, t+ e%., 198, p. 11 3A6uino, C/& Co%e, 1990 e%., p. 463). *+", $" emp+$">e% b ="te E"$re$& ! C/& C$"e No. 0034

ee% $$!"t t+e b$%rop of t+e foreo! f$t$& $!tee%e!t" $!% &e$& pr!p&e", Fe $re of t+e o!"%ere% op!o! t+$t !e

PCGG C,airman &a0tan00ol C% G/ni0/ndo la+:s t,e le0al and moral a/t,orit4 to overt/rn and set aside a

1revio/s validand authorized+ontra+ttransa+tion entered into *4 ,is 1rede+essor in *e,al5 o5 t,e Re1/*li+% To r/le ot,er2ise

is to san+tion an /nla25/l *etra4al *4 one 1art4 o5 t,e tr/st and +on5iden+e re1osed *4 t,e ot,er% It m/st *e noted t,at t,e

1arties to t,e 0reement are 1lainti55 Re1/*li+ o5 t,e P,ili11ines# as re1resented *4 t,e PCGG# and de5endant Ro*erto S%

Benedi+to# not an4*od4 else. Ft+ t+" b$" prem"e, t &o$&& fo&&o" t+$t a5ter t,e d/e e@e+/tion o5 t,e 0reement *4 and

*et2een PCGG# as re1resentative o5 1lainti55 Re1/*li+ o5 t,e P,ili11ines# and de5endant Benedi+to# t,e same ,as a+7/ired a

*indin0 and res 6/di+ata e55e+t as a0ainst t,e 1arties t,ereto% #erfore, $! +$!e ! t+e $%m!"tr$t/e "trtre $!%or

per"o!$&te" t+! t+e #CGG $!!ot %efe$t t+e /$&%t $!% b!%! effet t+ereof betee! t+e p$rte". A r&! to t+e o!tr$r " !ot

o!& &&o$& $!% rr$to!$&, bt !et$b&e $!% per!o" $" e&&, for t m$ ope! t+e %oor for $pro" $%/e!tr"m o! t+e p$rt of t+e

po&'m$er" of t+e &$!%, $!% %"re$r% for t+e m$e"t of t+e &$, ++ o&% &tm$te& br! $bot t+e t>e!r

o!f%e!e ! t+e "!ert of t+e o/er!me!t ! t" %e$&!" t+ t+e o/er!e%.

-p. 115'116, G.R. No. 108368).

Ft+! t+e o!tet of t+e C/& Co%e, t+e pr!p&e of e"toppe& !%er Art&e 1431 " o!& of "pp&etor $pp&$to! !"of$r $" t+e $re

pro/"o!" of t+e Co%e, "+ $" t+e b!%! effet of $ omprom"e $reeme!t !%er Art&e 203, t+e Co%e of Commere, t+e R&e" o

)/7, Ne C/& Co%e 4 Paras, C/& Co%e A!!ot$te%, 12t+ e%., 1989, p. 12). T,e real o55i+e o5 t,e e7/ita*le norm o5 esto11el is

t,e la2 */t it s,o/ld not s/11lant 1ositive la2% Le@Li*

Drt+ermore# t,is Co/rt 2ill re6e+t a settlement onl4 i5 it +ontravenes rti+le 3


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InAraneta vs. Perez(D SCR 93 [.9A]-# 2e r/led t,at a +om1romise on+e a11roved *4 5inal orders o5 t,e +o/rt ,as t,e 5or+e o5 res 6/di+ata *et2een t,e

1arties and s,o/ld not *e dist/r*ed e@+e1t 5or vi+es o5 +onsent or 5or0er4% It is a lon0 esta*lis,ed do+trine t,at t,e la2 does notrelieve a 1art4 5rom t,e

e55e+ts o5 an /n2ise# 5oolis,# or disastro/s +ontra+t# entered into 2it, all t,e re7/ired 5ormalities and 2it, 5/ll a2areness o5 2,at ,e 2as doin0-#anda "s.

Aldaya, 89 #+&. 49 [1951]). Co/rts ,ave no 1o2er to relieve 1arties 5rom o*li0ations vol/ntaril4 ass/med# sim1l4 *e+a/se t,eir +ontra+ts t/rned o/t to *e

disastro/s deals or /n2ise investments -:illaorte "s. Mariano, 89 #+&. 341 [1951]).

7! t+e $"e $t b$r, t+e omprom"e $reeme!t, $" "t$te% b S$!%$!b$$!, $" "!e% $!% eete% b t+e p$rte" ;t+ t+er ee" %e ope!; -@e"o!, p. 23 p.

101, Ro&&o ! G.R. No. 108292). *+e #CGG !e t+e "tre!t+ of t+e e/%e!e ! t" +$!%", t+e $%/$!t$e" of mme%$te reo/er, t+e proete% !ome f fort+t+

pr/$t>e%, $!% ot+er be!eft" to t+e Go/er!me!t. *+e S$!%$!b$$! t"e&f ! to e$r" of proee%!" $!% %e&ber$to!" reete% t+e $&&e$to!" of fr$%, %eepto!,

&&e$&t, $!% o!tr$r!e"" to mor$&", oo% "tom", pb& po& $!% pb& or%er !o r$"e% $$! before ".

*+ere " $!ot+er $"pet of t+e"e petto!" pre"e!te% b petto!er" ++ $ppe$r" !o!""te!t $!% !fe$"b&e. *+e or!$& pr$er of t+e !e #CGG C+$rm$! $" to

;re!eot$te $ more "t, f$r $!% et$b&e $reeme!t; -A!!e G of #etto! ! G.R. No. 108292, p. 191, Ro&&o). At t+e r" of be! re%!%$!t, e o!e $$! m"t

emp+$">e t,at t,e 0overnment ,as alread4 ta:en over ever4t,in0 +eded to it *4 Benedi+to% In 5a+t# it is alread4 sellin0 i5 it ,as not 4et sold vario/s +eded

1ro1ert4 /nder t,e 1rivatiation 1ro0ram% In ot,er 2ords# t,e a0reement ,as not onl4 *een e@e+/ted# it ,as *een im1lemented% E/e! $" t+e #CGG "ee" to

!&&f $!% %e&$re /o% t+e omprom"e $reeme!t, t +$" !o !te!to! of retr!! $! of t+e pee" of propert ++ t ree/e% !%er t+e $reeme!t. 7t "t$te" t+$t

t+e r&e" o! t+e e"to! of ;re"ttto!; $re !ot t+o"e o! re"""b&e o!tr$t" bt t+o"e o! /o% $!% !e"te!t o!tr$t" ! t+e C/& Co%e.

T,e PCGG seemin0l4 5or0ets t,at t,e o2ners,i1 o5 t,e +eded 1ro1ert4 ,as *een vested in t,e 0overnment not *e+a/se it 2on its +ases in t,e +o/rts and

t,e tr/e o2ners,i1 or ille0al a+7/isition ,as *een de5initivel4 esta*lis,ed% It +annot ass/me t,at its alle0ations ,ave *een s/stained *4 t,e

Sandi0an*a4an%O2ners,i1 ,as *een trans5erred *e+a/se o5 t,e +om1romise a0reement# not *e+a/se o5 an4 eviden+e 1resented in +o/rt *4 eit,er side on

t,e merits or demerits o5 t,e re+onve4an+e and reversion +ases% Le@Li*

*+e Comprom"e Areeme!t t"e&f %e&$re"

FKEREAS, fo&&o! t+e term!$to! of t+e !te% St$te" $!% S"" $"e", $!% $&"o t+ot $%mtt! t+e mert" of t+er re"pet/e

&$m" $!% o!ter&$m" pre"e!t& !/o&/e% ! !ert$!, protr$te%, $!% epe!"/e &t$to!, t+e Repb& of t+e #+&pp!e", "o&e&

mot/$te% b t+e %e"re for mme%$te $omp&"+me!t of t" reo/er m""o! $!% r. Be!e%to, be! !tere"te% to &e$% $ pe$ef&

$!% !orm$& pr"t of +" e!%e$/or", t+e p$rte" +$/e %e%e% to t+%r$ $!%or %"m"" t+er mt$& &$m" $!% o!ter&$m" !%er

t+e $"e" pe!%! ! t+e #+&pp!e" e$r&er referre% to

7! ot+er or%", t+e Go/er!me!t $!te% to reo/er $" m+ $" t o&% $!% $" f$"t $" po""b&e +&e Be!e%to $!te% to b pe$e t+ot $%mtt! &t. I5 t,e

PCGG 2ants to n/lli54 t,e a0reement it entered into 5reel4 and vol/ntaril4# it m/st *e 2illin0 to ret/rn all t,e 1ro1ert4 +eded to it *e+a/se o5 t,e 0reement

and re+over t,em *4 1rovin0 its +ases in t,e +o/rse o5 6/di+ial 1ro+eedin0s% T,is is an essential 5irst ste1% It +annot rene0e on t,e a0reement 2,ile ,oldin0

on to 1ro1ert4 2,i+, it re+eived as a res/lt o5 said a0reement%Cd1r

&ore t,an an4 1erson or instit/tion# t,e 0overnment s,o/ld ,onor its solemn +ommitments% It 2o/ld set a *ad 1r

disen+,antment 2it, 0overnment i5 ever4 ne2 ,ead o5 a 0overnment a0en+4 is allo2ed to 5reel4 diso2n t,e le0itimate a0

es1e+iall4 t,ose *earin0 +o/rt a11roval and# even as ever4t,in0 is alread4 5inal and im1lemented# insist on 5/rt,er ro/n

#CGG?" t+eor, t+ere o&% be !ot+! to pre/e!t $! of t" ftre C+$rm$! from rep%$t! $!% re/o! $t" of +" pre%ee""or".

$!% "t$b&t ! %e$&! t+ t+e o/er!me!t o&% be &o"t.

*+e petto!er" ! G.R. No". 108548'49 $!% 108550 f&e% t+er petto!" to "et $"%e t+e %e!$& of t+er moto! to !ter/e!e. *+e r$"e

t+e #CGG ! t+e to ot+er $"e" ! t+er b% to "et $"%e t+e omprom"e $reeme!t. Aor%! to "$% petto!er", t+e $re !ter/e

ompe!"$te t+em $!% t+e "$r !%"tr for t+e ""tem$t p&!%er of t+e !%"tr. e a0ree 2it, t,e Sandi0an*a4an t,at t,eir ri0

se1arate 1ro+eedin0%

*+ere " !o %obt t+$t !tere"te% p$rte" +o &$m o!er"+p of "ome $""et" embr$e% ! t+e "ett&eme!t $! p$rtp$te !pending&t

before t+e S$!%$!b$$! $" +e&% ! %epubli "s. $andiganbayan-184 SCRA 382 [1990]) t+ refere!e to !%e!t" $r"! from,

$"e" f$&&! t+! re"po!%e!t ort?" e&"/e $!% or!$& r"%to! -PCGG "s. Pe;a, 159 SCRA 556 [1988]). Bt !$"m+ $" t+

50 f&e% t+er moto! for &e$/e to !ter/e!e $!% to $%mt memor$!%m ! !ter/e!to! o! No/ember 13, 1992 -p. , #etto! p. 8, Ro

#etto! p. , Ro&&o ! G.R. No. 108550) or $fter prom&$to! of t+e mp!e% %e"o! o! tober 2, 1992, t $!!ot be $!"$% t+$t

seasona*l4 raised *e5ore or d/rin0 t,e trial s1o:en o5 *4 Se+tion 3# R/le .3 o5 t,e Revised R/les o5 Co/rt# to 2it>

Se. 2 I 7!ter/e!to! I A per"o! m$, before or %r! $ tr$&, be permtte% b t+e ort, ! t" %"reto! to !ter/e!

+$" &e$& !tere"t ! t+e m$tter ! &t$to!, or ! t+e "e"" of et+er of t+e p$rte", or $! !tere"t $$!"t bot+, or +e

$" to be $%/er"e& $ffete% b $ %"trbto! or ot+er %"po"to! of propert ! t+e "to% of t+e ort or of $! offer

At $! r$te, $/$&$b&t of $ "ep$r$te proee%! for petto!er" $" t+r% per"o!" to t+e omprom"e $reeme!t before t+e S$!%$

t+e r&! of t+" Cort ! %epubli "s. $andiganbayan-184 SCRA 382 [1990]) $!% !PCGG "s. Pe;a-159 SCRA 556 [1988]), 1ros

/nder Se+tion 3(*-# R/le .3 o5 t,e Revised R/les o5 Co/rt>

Se. 2-b) I @"reto! of ort I 7! $&&o! or %"$&&o! $ moto! for !ter/e!to!, t+e ort, ! t+e eer"e

o!"%er +et+er or !ot t+e !ter/e!to! && !%& %e&$ or pre%e t+e $%%$to! of t+e r+t" of t+e or!$& p$r

!ot t+e !ter/e!or?" r+t" m$ be f&& protete% ! $ "ep$r$te proee%!.%p+&

FKEREDRE, t+e petto!" ! G.R. No. 108292, 108368, 108548'49, $!% 108550 $re +ereb %"m""e%. *+e re"tr$!! or%er" ""

$r+ 10, 1993, $r+ 23, 1993, $!% $r+ 24, 1993, $re +ereb &fte% $!% t+e p$rte" to t+e omprom"e $reeme!t $re or%ere%

t+ereof.


6/59

S R@ERE@.

ar"asa, C .! ., Cru2, Padilla, Bidin, Gri;o1A6uino, %egalado, e!" $!% e!tte" ! t+e b%%! proe"".

*+e or$& $rme!t" ! G.R. No. 92013, Laurel ". Garia, et al.ere +e$r% b t+e Cort o! $r+ 13, 1990. After G.R. No. 9204,

al.$" f&e%, t+e re"po!%e!t" ere rere% to f&e $ omme!t b t+e Cort?" re"o&to! %$te% Debr$r 22, 1990. *+e to petto!"

1990 +e! t+e memor$!%$ of t+e p$rte" ! t+e Laurel$"e ere %e&ber$te% po!.

*+e Cort o&% !ot $t o! t+e"e $"e" mme%$te& be$"e t+e re"po!%e!t" f&e% $ moto! for $! ete!"o! of t+rt -30) %$" to f

fo&&oe% b $ "eo!% moto! for $! ete!"o! of $!ot+er t+rt -30) %$" ++ e r$!te% o! $ 8, 1990, $ t+r% moto! for ete!

1990 $!% $ fort+ moto! for ete!"o! of tme ++ e r$!te% o! =!e 5, 1990 bt $&&! t+e $tte!to! of t+e re"po!%e!t" to t+e

bee! pe!%!. After t+e omme!t $" f&e%, t+e petto!er ! G.R. No. 9204 $"e% for t+rt -30) %$" to f&e $ rep&. Fe !ote% +" m

to -2) $"e".


7/59

*+e "bet propert ! t+" $"e " o!e of t+e for -4) properte" ! =$p$! $re% b t+e #+&pp!e o/er!me!t !%er t+e Rep$r$to!" Areeme!t e!tere% !to t+

=$p$! o! $ 9, 1956, t+e ot+er &ot" be!

-1) *+e N$mpe%$ #ropert $t 11'24 N$mpe%$'m$+, S+b$', *oo ++ +$" $! $re$ of

$pprom$te& 2,489.96 "$re meter", $!% " $t pre"e!t t+e "te of t+e #+&pp!e

Emb$"" C+$!er

-2) *+e Jobe Commer$& #ropert $t 63 N$!$'+o, Jobe, t+ $! $re$ of $ro!% 64.2

"$re meter" $!% $teor>e% $" $ ommer$& &ot !o be! "e% $" $

$re+o"e $!% p$r! &ot for t+e o!"&$te "t$ff $!%

-3) *+e Jobe Re"%e!t$& #ropert $t 1'980'2 b$!o$m$+o, S+!o+$r$, N$%$', Jobe, $

re"%e!t$& &ot ++ " !o /$$!t.

*+e properte" $!% t+e $pt$& oo%" $!% "er/e" prore% from t+e =$p$!e"e o/er!me!t for !$to!$& %e/e&opme!t proet" $re p$rt of t+e !%em!f$to! to t+e

D&p!o peop&e for t+er &o""e" ! &fe $!% propert $!% t+er "ffer! %r! For&% F$r 77.

*+e Rep$r$to!" Areeme!t pro/%e" t+$t rep$r$to!" /$&e% $t H550 m&&o! o&% be p$$b&e ! te!t -20) e$r" ! $or%$!e t+ $!!$& "+e%&e" of

proreme!t" to be fe% b t+e #+&pp!e $!% =$p$!e"e o/er!me!t" -Art&e 2, Rep$r$to!" Areeme!t). Rep. At. No. 189, t+e Rep$r$to!" $to! of rep$r$to!" $!% %e/e&opme!t &o$!". *+e proreme!t" $re %/%e% !to t+o"e for "e b t+e go"ernment setor$!%

t+o"e forpri"ate parties! proet" $" t+e t+e! N$to!$& Eo!om Co!& "+$&& %eterm!e. *+o"e !te!%e% for t+e pr/$te "etor "+$&& be m$%e $/$&$b&e b "$&e to

D&p!o t>e!" or to o!e +!%re% -100L) pere!t D&p!o'o!e% e!tte" ! !$to!$& %e/e&opme!t proet".

T,e Ro11on0i 1ro1ert4 2as a+7/ired 5rom t,e $a1anese 0overnment /nder t,e Se+ond "ear S+,ed/le and listed /nder t,e ,eadin0 ;Government Se+tor;#

t+ro+ Rep$r$to!" Co!tr$t No. 300 %$te% =!e 2, 1958. T,e Ro1on00i 1ro1ert4 +onsists o5 t,e land and */ildin0 ;5or t,e C,an+er4 o5 t,e P,ili11ine

Em*ass4;-A!!e '@ to emor$!%m for #etto!er, p. 503). A" !te!%e%, it *e+ame t,e site o5 t,e P,ili11ine Em*ass4 /ntil t,e latter 2as trans5erred to

Nam1eidai on $/l4 33# .9DA 2,en t,e Ro11on0i */ildin0 needed ma6or re1airs. @e to t+e f$&re of or o/er!me!t to pro/%e !ee""$r f!%", t+e Roppo!

propert +$" rem$!e% !%e/e&ope% "!e t+$t tme.

A propo"$& $" pre"e!te% to #re"%e!t Cor$>o! C. A!o b former #+&pp!e Amb$""$%or to =$p$!, Carlos $% )alde, to m$e t+e propert t+e "bet of $ &e$"e

$reeme!t t+ $ =$p$!e"e frm I J$m$ Corpor$to! I ++ "+$&& o!"trt to -2) b&%!" ! Roppo! $!% o!e -1) b&%! ! N$mpe%$ $!% re!o/$te t+e

pre"e!t #+&pp!e C+$!er ! N$mpe%$. *+e +onsideration o5 t,e +onstr/+tion 2o/ld *e t,e lease to t,e 5orei0n +or1oration o5 one (.- o5 t,e */ildin0s to

*e +onstr/+ted in Ro11on0i and t,e t2o (3- */ildin0s in Nam1eidai . *+e ot,er */ildin0 in Ro11on0i s,all t,en *e /sed as t,e P,ili11ine Em*ass4

C,an+er4. At t+e e!% of t+e &e$"e pero%, $ && t+e t+ree &e$"e% b&%!" "+$&& be ope% $!% "e% b t+e #+&pp!e o/er!me!t. No +$!e of o!er"+p or tt&e "+$&&

or. -See A!!e ;B; to Rep& to Comme!t) *+e #+&pp!e o/er!me!t ret$!" t+e tt&e $&& t+ro+ot t+e &e$"e pero% $!% t+ere$fter. Koe/er, t+e o/er!me!t +$"

!ot $te% f$/or$b& o! t+" propo"$& ++ " pe!%! $ppro/$& $!% r$tf$to! betee! t+e p$rte". 7!%ee%, o! A"t 11, 1986, #re"%e!t A!o re$te% $ ommttee

to "t% t+e %"po"to!t&>$to! of #+&pp!e o/er!me!t properte" ! *oo $!% Jobe, =$p$! t+ro+ A%m!"tr$t/e r%er No. 3, fo&&oe% b A%m!"tr$t/e r%er"

Nmbere% 3'A, B, C $!% @.

! =& 25, 198, t+e #re"%e!t ""e% Eet/e r%er No. 296 e!tt&! non?Fili1ino +itiens or entities to avail o5 re1arations

t,e event o5 sale# lease or dis1osition. *+e for properte" ! =$p$! !&%! t+e Roppo! ere "pef$&& me!to!e% ! t+e fr"t ;F

Am%"t oppo"to! b /$ro" "etor", t+e Eet/e br$!+ of t+e o/er!me!t +$" bee! p"+!, 2it, 0reat vi0or# its de+ision to

startin0 2it, t,e Ro11on0i lot. *+e propert +$" te bee! "et for b%%! $t $ m!mm f&oor pre $t H225 m&&o!. *+e fr"t b%%

b%%er $&fe%. *+e "eo!% o!e, $fter po"tpo!eme!t", +$" !ot et m$ter$&>e%. *+e &$"t "+e%&e% b%%! o! Debr$r 21, 1990

t+e r&e" o! b%%! ere +$!e% "+ t+$t t+e H225 m&&o! f&oor pre be$me mere& $ "e"te% f&oor pre.%rep

*+e Cort f!%" t+$t e$+ of t+e +ere! petto!" r$"e" %"t!t ""e". T,e 1etitioner in G%R% No% 93


8/59

T,e res1ondents# 5or t,eir 1art# re5/te t,e 1etitioners +ontention *4 sa4in0 t,at t,e s/*6e+t 1ro1ert4 is not 0overned *4 o/r Civil Code */t *4 t,e la2s o5

$a1an 2,ere t,e 1ro1ert4 is lo+ated%*+e re& po! t+e r/le o5 lex situs++ " "e% ! %eterm!! t+e $pp&$b&e &$ re$r%! t+e $"to!, tr$!"fer $!%

%e/o&to! of t+e tt&e to $ propert. *+e $&"o !/oe O1inion No% 3.#Sere" of 1988, %$te% =$!$r 2, 1988 of t+e Seret$r of ="te ++ /sed t,e lex situsin

e@1lainin0 t,e ina11li+a*ilit4 o5 P,ili11ine la2 re0ardin0 a 1ro1ert4 sit/ated in $a1an%

T,e res1ondents add t,at even ass/min0 5or t,e sa:e o5 ar0/ment t,at t,e Civil Code is a11li+a*le , t+e Roppo! propert +$" e$"e% to beome propert of

pb& %om!o!. 7t +$" beome p$trmo!$& propert be$"e t +$" !ot bee! "e% for pb& "er/e or for %p&om$t prpo"e" for o/er t+rtee! -13) e$r" !o -Ct!

Art&e 422, C/& Co%e) $!% be$"e t+eintentionb t+e Eet/e @ep$rtme!t $!% t+e Co!re"" to on"ert it to pri"ate use+$" bee! m$!fe"te% b o/ert $t", "+

$", $mo! ot+er" -1) t+e tr$!"fer of t+e #+&pp!e Emb$"" to N$mpe%$ -2) t+e ""$!e of $%m!"tr$t/e or%er" for t+e po""b&t of $&e!$t! t+e for o/er!me!t

properte" ! =$p$! -3) t+e ""$!e of Eet/e r%er No. 296 -4) t+e e!$tme!t b t+e Co!re"" of Rep. At No. 665 [t+e Compre+e!"/e Ar$r$! Reform e!" or e!tte" o!e% b t+em %% !ot +$/e t+e +$!e to omp& t+ #r+$"e ffer Rereme!t" o! t+e Roppo!. For"e,

m!mm pre of H225 m&&o! from ++ pre $pt$& $!" t$ !%er =$p$!e"e &$ of $bot 50 to 0L of t+e f&oor pre o&% "t&& be

7

*+e petto!er" $!% re"po!%e!t" ! bot+ $"e" %o !ot %"pte t+e f$t t+$t t+e Roppo! "te $!% t+e t+ree re&$te% properte" e

$reeme!t", t+$t t+e"e ere $""!e% to t+e o/er!me!t "etor $!% t+$t t+e Roppo! propert t"e&f $" "pef$&& %e"!$te% !%

+o"e t+e #+&pp!e Emb$"".

*+e !$tre of t+e Roppo! &ot $" propert for pb& "er/e " epre""& "pe&&e% ot. 7t " %t$te% b t+e term" of t+e Rep$r$to!" A

o!tr$t of proreme!t ++ b!% bot+ t+e #+&pp!e o/er!me!t $!% t+e =$p$!e"e o/er!me!t.

T,ere +an *e no do/*t t,at it is o5 1/*li+ dominion /nless it is +onvin+in0l4 s,o2n t,at t,e 1ro1ert4 ,as *e+ome 1atrimoni

5ailed to do%

s 1ro1ert4 o5 1/*li+ dominion# t,e Ro11on0i lot is o/tside t,e +ommer+e o5 man% It +annot *e alienated% Its o2ners,i1 is

5or 0eneral /se and en6o4ment# an a11li+ation to t,e satis5a+tion o5 +olle+tive needs# and resides in t,e so+ial 0ro/1 . *+e p

$ r%$& per"o!, bt t+e t>e!" t " !te!%e% for t+e ommo! $!% pb& e&f$re $!% $!!ot be t+e obet of $ppropr$to!. -*$e!

*o&e!t!o, Comme!t$re" o! t+e C/& Co%e of t+e #+&pp!e", 1963 E%to!, o&. 77, p. 26).

*+e $pp&$b&e pro/"o!" of t+e C/& Co%e $re

;AR*. 419. #ropert " et+er of pb& %om!o! or of pr/$te o!er"+p.

;AR*. 420. *+e fo&&o! t+!" $re propert of pb& %om!o!

;-1) *+o"e !te!%e% for pb& "e, "+ $" ro$%", $!$&", r/er", torre!t", port" $!% br%e"

o!"trte% b t+e St$te, b$!", "+ore", ro$%"te$%", $!% ot+er" of "m&$r +$r$ter

-2) *+o"e ++ be&o! to t+e St$te, t+ot be! for pb& "e, $!% $re !te!%e% for "ome

pb& "er/e or for t+e %e/e&opme!t of t+e !$to!$& e$&t+.

;AR*. 421. A&& ot+er propert of t+e St$te, ++ " !ot of t+e +$r$ter "t$te% ! t+e pree%!

$rt&e, " p$trmo!$& propert.;


9/59

T,e Ro11on0i 1ro1ert4 is +orre+tl4 +lassi5ied /nder 1ara0ra1, 3 o5 rti+le =3< o5 t,e Civil Code as 1ro1ert4 *elon0in0 to t,e State and intended 5or some

1/*li+ servi+e%

K$" t+e !te!to! of t+e o/er!me!t re$r%! t+e "e of t+e propert bee! +$!e% be$"e t+e &ot +$" bee! %&e for "ome e$r"M K$" t beome p$trmo!$&M

T,e 5a+t t,at t,e Ro11on0i site ,as not *een /sed 5or a lon0 time 5or a+t/al Em*ass4 servi+e does not a/tomati+all4 +onvert it to 1atrimonial 1ro1ert4% n4

s/+, +onversion ,a11ens onl4 i5 t,e 1ro1ert4 is 2it,dra2n 5rom 1/*li+ /se-Cebu O?ygen and Aetylene Co. ". Berilles, 66 SCRA 481 [195]). 1ro1ert4

+ontin/es to *e 1art o5 t,e 1/*li+ domain# not availa*le 5or 1rivate a11ro1riation or o2ners,i1 ;/ntil t,ere is a 5ormal de+laration on t,e 1art o5 t,e

0overnment to 2it,dra2 it 5rom *ein0 s/+, -'gnaio ". e!" $!% o!e +!%re% -100L) pere!t D&p!o'o!e% e!tte". *+e tet of Eet/e r%er No.

296 pro/%e"

;Seto! 1. *+e pro/"o!" of Repb& At No. 189, $" $me!%e%, $!% of ot+er &$" to t+e

o!tr$r !ott+"t$!%!, t+e $bo/eme!to!e% properte" $! be m$%e $/$&$b&e for "$&e, &e$"e

or $! ot+er m$!!er of %"po"to! to !o!'D&p!o t>e!" or to e!tte" o!e% b !o!'D&p!o

t>e!".;

E@e+/tive Order No% 39A is *ased on t,e 2ron0 1remise or ass/m1tion t,at t,e Ro11on0i and t,e t,ree ot,er 1ro1erties 2ere earlier +onverted into

aliena*le real 1ro1erties%A" e$r&er "t$te%, Re1% +t No% .D9 %ffere!t$te" t+e proreme!t" for t+e o/er!me!t "etor $!% t+e pr/$te "etor -Seto!" 2 $!% 12,

Rep. At No. 189). !& t+e pr/$te "etor properte" $! be "o&% to e!%'"er" +o m"t be D&p!o" or e!tte" o!e% b D&p!o". 7t " t+" !$to!$&t pro/"o! ++

$" $me!%e% b Eet/e r%er No. 296.

Seto! 63 -) of Rep. At No. 665 -t+e CAR#


10/59

;Seto! 9 -f). Con"eyanes and ontrats to w(i( t(e Go"ernment is a party. I 7! $"e" !

++ t+e Go/er!me!t of t+e Repb& of t+e #+&pp!e" " $ p$rt to $! %ee% or ot+er

!"trme!t o!/e! t+e tt&e to re$& e"t$te or to $! ot+er propert t+e val/e o5 2,i+, is in

e@+ess o5 one ,/ndred t,o/sand 1esos, t+e re"pet/e @ep$rtme!t Seret$r "+$&& prep$re

t+e !ee""$r p$per" ++, toet+er t+ t+e proper reomme!%$to!", shall be submitted to

the 1ongress of the Philippines for approval by the same% S+ %ee%, !"trme!t, or

o!tr$t "+$&& be eete% $!% "!e% b t+e #re"%e!t of t+e #+&pp!e" o! be+$&f of t+e

Go/er!me!t of t+e #+&pp!e" !&e"" t+e Go/er!me!t of t+e #+&pp!e" !&e"" t+e $t+ort

t+erefor be epre""& /e"te% b &$ ! $!ot+er offer.; -Emp+$"" "pp&e%)

*+e rereme!t +$" bee! ret$!e% ! Seto! 48 # Boo: I o5 t,e dministrative Code o5 .9D-Eet/e r%er No. 292).

;SEC. 48. Offiial Aut(ori2ed to Con"ey %eal Property. I F+e!e/er re$& propert of t+e

Go/er!me!t " aut(ori2ed by law to be on"eyed,t+e %ee% of o!/e$!e "+$&& be eete% !

be+$&f of t+e o/er!me!t b t+e fo&&o!

;-1- For 1ro1ert4 *elon0in0 to and titled in t,e name o5 t,e Re1/*li+ o5 t,e P,ili11ines, b

t+e #re"%e!t, !&e"" t+e $t+ort t+erefor " epre""& /e"te% b &$ ! $!ot+er offer.

;-2- For 1ro1ert4 *elon0in0 to t,e Re1/*li+ o5 t,e P,ili11ines */t titled in t,e name o5 an4

1oliti+al s/*division or o5 an4 +or1orate a0en+4 or instr/mentalit4, b t+e eet/e +e$%

of t+e $e! or !"trme!t$&t.; -Emp+$"" "pp&e%).

It is not 5or t,e President to +onve4 val/a*le real 1ro1ert4 o5 t,e 0overnment on ,is or ,er o2n sole 2ill% n4 s/+, +onve4an+e m/st *e a/t,oried and

a11roved *4 a la2 ena+ted *4 t,e Con0ress% It re7/ires e@e+/tive and le0islative +on+/rren+e%

Resol/tion No% 88 o5 t,e Senate dated $/ne # .99# as:in0 5or t,e de5erment o5 t,e sale o5 t,e Ro11on0i 1ro1ert4 does not 2it,dra2 t,e 1ro1ert4 5rom

1/*li+ domain m/+, less a/t,orie its sale% It is a mere resol/tion it is not a 5ormal de+laration a*andonin0 t,e 1/*li+ +,ara+ter o5 t,e Ro11on0i 1ro1ert4%

7! f$t, t+e Se!$te Commttee o! Dore! Re&$to!" " o!%t! +e$r!" o! Se!$te Re"o&to! No. 34 ++ r$"e" "ero" po& o!"%er$to!" $!% $&&" for $

f$t'f!%! !/e"t$to! of t+e rm"t$!e" be+!% t+e %e"o! to "e&& t+e #+&pp!e o/er!me!t properte" ! =$p$!.! t+$t ;t+e

%e"o! of t+e Eet/e to %"po"e of t+e Roppo! propert to f!$!e t+e CAR# . . . $!!ot be e"to!e%; ! /e of Seto! 63 -) of Rep. At. No. 665 # t,e

Co/rt did not a+:no2led0e t,e 5a+t t,at t,e 1ro1ert4 *e+ame aliena*le nor did it indi+ate t,at t,e President 2as a/t,oried to dis1ose o5 t,e Ro11on0i

1ro1ert4% *+e re"o&to! "+o&% be re$% to me$! t+$t ! $"e t+e Roppo! propert " re'&$""fe% to be p$trmo!$& $!% $&e!$b&e b $t+ort of &$, t+e proee%" of

$ "$&e m$ be "e% for !$to!$& eo!om %e/e&opme!t proet" !&%! t+e CAR#.

oreo/er, t,e sale in .99 did not materialie% T,e 1etitions *e5ore /s 7/estion t,e 1ro1osed .99< sale o5 t,e Ro11on0i 1

iss/es raised in t,ese 1etitions# not t,e iss/es raised in .99%

Havin0 de+lared a need 5or a la2 or 5ormal de+laration to 2it,dra2 t,e Ro11on0i 1ro1ert4 5rom 1/*li+ domain to ma:

le0islative a/t,orit4 to allo2 t,e sale o5 t,e 1ro1ert4# 2e see no +om1ellin0 reason to ta+:le t,e +onstit/tional iss/e raised *4

*+e Cort %oe" !ot or%!$r& p$"" po! o!"ttto!$& e"to!" !&e"" t+e"e e"to!" $re proper& r$"e% ! $ppropr$te $"e" $!%

t+e %eterm!$to! of t+e $"e -People ". :era, 65 #+&. 56 [193]). *+e Cort && !ot p $"" po! $ o!"ttto!$& e"to! $&t+o+ pr

t+e $"e $! be %"po"e% of o! "ome ot+er ro!% "+ $" t+e $pp&$to! of $ "t$tte or e!er$& &$ -S&er /.


11/59

bot+ t+e #re"%e!t $!% o!re"" m"t o!r. Co!"%er! t+e properte"? mport$!e $!% /$&e # t,e la2s on +onversion and dis1osition o5 1ro1ert4 o5 1/*li+

dominion m/st *e 5ait,5/ll4 5ollo2ed%

FKEREDRE, 7N 7EF D *KE DREG7NG, t+e petto!" $re GRAN*E@. A rt of pro+bto! " ""e% e!o!! t+e re"po!%e!t" from proee%! t+ t+e "$&e of

t+e Roppo! propert ! *oo, =$p$!. *+e Debr$r 20, 1990 *empor$r Re"tr$!! r%er " m$%e #ERANEN*.

S R@ERE@.

Melenio18errera, Paras, Bidin, Gri;o1A6uino$!% %egalado, !!.,o!r.

SECN@ @77S7N

[G.R. No. 104235. No/ember 18, 1993.]

SPOUSES CESR M SUTHIR 'L&E N! LIN 'L&E#petitioners#vs.HONORBLE COURT OF PPELS N!

TRNSORL! IRLINES# INC%# respondents.

$yip, $ala2ar, 8ernande2, Gatmaitan for petto!er".

=uisumbing, #orres & E"angelistafor pr/$te're"po!%e!t.

S"LLBUS

1. REE@7A<


12/59

o!& St+r$ $!%


13/59

*+e %"po"t/e porto! of t+e %e"o! of re"po!%e!t Cort of Appe$&"%$te% tober 25, 1991 "t$te" $" fo&&o".

;FKEREDRE, ! /e of $&& t+e foreo!, t+e %e"o! !%er re/e " +ereb @7D7E@ ! t+$t t+e $$r% of mor$& $!% eemp&$r

%$m$e" to t+e p&$!tff" " e&m!$te%, $!% t+e %efe!%$!t'$ppe&&$!t " +ereb or%ere% to p$ t+e p&$!tff" t+e fo&&o! $mo!t"

;-1) SH159.49, or t" pe"o e/$&e!t $t t+e tme of p$me!t, repre"e!t! t+e pre of St+r$ P$&$me$?" tet for *FA D&+t 00

;-2) SH159.49, or t" pe"o e/$&e!t $t t+e tme of p$me!t, repre"e!t! t+e pre of Ce"$r P$&$me$?" tet for *FA D&+t 00

;-3) #50,000.00 $" $!% for $ttor!e?" fee".

;-4) *+e o"t" of "t.

;S R@ERE@.;=

Not "$t"fe% t+ t+e %e"o!, petto!er" r$"e% t+e $"e o! petto! for re/e o! ertor$r $!% $&&ee% t+e fo&&o! error" ommtte% b t+e re"po!%e!t Cort of

Appe$&", to t%rep

7.

;. . . 7N K


14/59


15/59

PUNN,! p

! $r+ 1, 1989, pr/$te re"po!%e!t ni+eto Fontanillapr+$"e% from petto!er United irlines, t+ro+ t+e P,ili11ine Travel B/rea/! $!&$, t+ree -3) ;"t

t+e .S.A.; tet" for +m"e&f, +" fe $!% +" m!or "o! +$& for t+e fo&&o! rote"

-$) S$! Dr$!"o to F$"+!to! -15 Apr& 1989)

-b) F$"+!to! to C+$o -25 Apr& 1989)

-) C+$o to


16/59

#etto!er !te% Ar&!e" !o ome" to t+" Cort r$"! t+e fo&&o! $""!me!t of error"

7

RES#N@EN* CR* D A##EA


17/59

$" "o mot/$te%, e %o !ot b !to pr/$te re"po!%e!t"? &$m t+$t

SEC*7N 5. Amount of


18/59

S R@ERE@.


19/59

! =!e 15, 1998, JG7ES rote #GSC !form! t+e &$tter t+$t #GSC o&% !ot !&$ter$&& re"!% t+er o!tr$t !or %"m$!t&e $!% tr$!"fer t+e m$+!ere" $!%

epme!t o! mere m$!e% /o&$to!" b JG7ES. 7t $&"o !""te% t+$t t+er %"pte" "+o&% be "ett&e% b $rbtr$to! $" $ree% po! ! Art&e 15, t+e $rbtr$to!

&$"e of t+er o!tr$t.

! =!e 23, 1998, #GSC $$! rote JG7ES reter$t! t+e o!te!t" of t" =!e 1, 1998 &etter t+re$te!! t+$t t+e m$+!ere", epme!t, $!% f$&te" !"t$&&e%

! t+e p&$!t o&% be %"m$!t&e% $!% tr$!"ferre% o! =& 4, 1998. *+", o! =& 1, 1998, JG7ES !"ttte% $! App&$to! for Arbtr$to! before t+e Jore$! Commer$&

Arbtr$to! Bo$r% -JCAB) ! Seo&, Jore$ pr"$!t to Art. 15 of t+e Co!tr$t $" $me!%e%.

! =& 3, 1998, JG7ES f&e% $ Comp&$!t for Spef #erform$!e, %oete% $" C/& C$"e No. 98'11$$!"t #GSC before t+e !t!&p$ Ct Reo!$& *r$&

Cort -R*C). *+e R*C r$!te% $ tempor$r re"tr$!! or%er -*R) o! =& 4, 1998, ++ $" "b"ee!t& ete!%e% !t& =& 22, 1998. 7! t" omp&$!t, JG7ES

$&&ee% t+$t #GSC +$% !t$&& $%mtte% t+$t t+e +e" t+$t ere "toppe% ere !ot f!%e% bt &$ter o! &$me% t+$t t "toppe% p$me!t of t+e +e" for t+e re$"o!

t+$t ;t+er /$&e $" !ot ree/e%; $" t+e former $&&ee%& bre$+e% t+er o!tr$t b ;$&ter! t+e $!tt $!% &oer! t+e $&t of t+e m$+!er $!% epme!t;

!"t$&&e% ! t+e p&$!t $!% f$&e% to m$e t+e p&$!t oper$to!$& $&t+o+ t e$r&er ertfe% to t+e o!tr$r $" "+o! ! $ =$!$r 22, 1998 Certf$te.


20/59

t+$t t+e tot$& o!tr$t pre for S@ 1,530,000 $" for t+e +o&e p&$!t $!% +$% !ot bee! f&& p$% $" o!tr$r to t+e f!%! of t+e R*C t+$t #GSC f&& p$% t+e

pre of S@ 1,224,000, ++ $" for $&& t+e m$+!ere" $!% epme!t. Aor%! to t+e CA, t+" %eterm!$to! b t+e R*C $" $ f$t$& f!%! beo!% t+e $mbt

of $ petto! for ertiorari.

! t+e ""e of t+e /$&%t of t+e $rbtr$to! &$"e, t+e CA $ree% t+ t+e &oer ort t+$t $! $rbtr$to! &$"e ++ pro/%e% for $ f!$& %eterm!$to! of t+e &e$&

r+t" of t+e p$rte" to t+e o!tr$t b $rbtr$to! $" $$!"t pb& po&.

! t+e ""e of !o!p$me!t of %oet fee" $!% !o!'$tt$+me!t of $ ertf$te of !o!'form "+opp! b #GSC, t+e CA +e&% t+$t t+e o!ter&$m" of #GSC ere

omp&"or o!e" $!% p$me!t of %oet fee" $" !ot rere% "!e t+e A!"er t+ o!ter&$m $" !ot $! !t$tor p&e$%!. Dor t+e "$me re$"o!, t+e CA "$% $

ertf$te of !o!'form "+opp! $" $&"o !ot rere%.

Drt+ermore, t+e CA +e&% t+$t t+e petto! for ertiorari+$% bee! f&e% prem$tre& "!e JG7ES %% !ot $t for t+e re"o&to! of t" re!t moto! for reo!"%er$to!

of t+e September 21, 1998 R*C r%er ++ $" t+e p&$!, "pee%, $!% $%e$te reme% $/$&$b&e. Aor%! to t+e CA, t+e R*C m"t be /e! t+e opport!t to

orret $! $&&ee% error t +$" ommtte%, $!% t+$t "!e t+e $""$&e% or%er" ere !ter&otor, t+e"e $!!ot be t+e "bet of $ petto! for ertiorari.

Ke!e, e +$/e t+" #etto! for Re/e o! Certiorari!%er R&e 45.

T,e Iss/es

#etto!er po"t" t+$t t+e $ppe&&$te ort ommtte% t+e fo&&o! error"

$. #RNNC7NG *KE OES*7N D FNERSK7# ER *KE ACK7NER: AN@ DAC7


21/59

*+e $&&ee% r$/e $b"e of %"reto! of t+e re"po!%e!t ort e/$&e!t to &$ of r"%to! ! t+e ""$!e of t+e to $""$&e% or%er" op&e% t+ t+e f$t t+$t

t+ere " !o p&$!, "pee%, $!% $%e$te reme% ! t+e or%!$r or"e of &$ $mp& pro/%e" t+e b$"" for $&&o! t+e re"ort to $ petto! for ertiorari!%er R&e 65.

Premat/rit4 o5 t,e 1etition *e5ore t,e C

Net+er %o e t+! t+$t JG7ES $" &t of form "+opp! ! f&! t+e petto! for ertiorari. Note t+$t JG7ES? moto! for reo!"%er$to! of t+e =& 23, 1998 R*C

r%er ++ %e!e% t+e ""$!e of t+e !!t/e rt +$% $&re$% bee! %e!e%. *+", OGIES onl4 remed4 2as to assail t,e RTCs interlo+/tor4 order via a

1etition 5or certiorari/nder R/le A8%

,ile t,e O+to*er 3# .99 motion 5or re+onsideration o5 OGIES o5 t,e Se1tem*er 3.# .99 RTC Order relatin0 to t,e ins1e+tion o5 t,in0s# and t,e

allo2an+e o5 t,e +om1/lsor4 +o/nter+laims ,as not 4et *een resolved# t,e +ir+/mstan+es in t,is +ase 2o/ld allo2 an e@+e1tion to t,e r/le t,at

*e5o re certiorari ma4 *e availed o5# t,e 1etitioner m/st ,ave 5iled a motion 5or re+onsideration and said motion s,o/ld ,ave *een 5irst resolved *4 t,e +o/rt

a 7/o% T,e reason *e,ind t,e r/le is ;to ena*le t,e lo2er +o/rt# in t,e 5irst instan+e# to 1ass /1on and +orre+t its mista:es 2it,o/t t,e intervention o5 t,e

,i0,er +o/r t%; rti+le .8 o5 t,e Contra+t

Fe !o o to t+e ore ""e of t+e /$&%t of Art. 15 of t+e Co!tr$t, t+e $rbtr$to! &$"e. 7t pro/%e"

Art&e 15.Arbitration. I A&& %"pte", o!tro/er"e", or %ffere!e" ++ m$ $r"e betee! t+e p$rte", ot of or ! re&$to! to or !

o!!eto! t+ t+" Co!tr$t or for t+e bre$+ t+ereof, "+$&& f!$&& be "ett&e% b $rbtr$to! ! Seo&, Jore$ ! $or%$!e t+ t+e

Commer$& Arbtr$to! R&e" of t+e Jore$! Commer$& Arbtr$to! Bo$r%. T,e a2ard rendered *4 t,e ar*itration(s- s,all *e 5inal

and *indin0 /1on *ot, 1arties +on+erned. -Emp+$"" "pp&e%.)

#etto!er &$m" t+e R*C $!% t+e CA erre% ! r&! t+$t t+e $rbtr$to! &$"e " !&& $!% /o%.

#etto!er " orret.

E"t$b&"+e% ! t+" r"%to! " t+e r&e t+$t t+e &$ of t+e p&$e +ere t+e o!tr$t " m$%e o/er!". Le? loi ontratus. T,e +ontra+t in t,is +ase 2as 1er5e+ted

,ere in t,e P,ili11ines% *+erefore, or &$" o+t to o/er!.


22/59

:no2n as t,e lternative !is1/te Resol/tion +t o5 3


23/59

*+", t $! be &e$!e% t+$t t+e o!ept of $ f!$& $!% b!%! $rbtr$& $$r% " "m&$r to %me!t" or $$r%" /e! b "ome of or $"'%$& bo%e", &e t+e

N$to!$& etion of a 3oreign Arbitral Award.I A p$rt to $ fore! $rbtr$to! proee%! m$ oppo"e $! $pp&$to! for reo!to!

$!% e!foreme!t of t+e $rbtr$& $$r% ! $or%$!e t+ t+e proe%re" $!% r&e" to be prom&$te% b t+e Spreme Cort o!& o!

t+o"e ro!%" e!mer$te% !%er Art&e of t+e Ne :or Co!/e!to!. A! ot+er ro!% r$"e% "+$&& be %"re$r%e% b t+e Reo!$&

*r$& Cort.

*+", 2,ile t,e RTC does not ,ave 6/risdi+tion over dis1/tes 0overned *4 ar*itration m/t/all4 a0reed /1on *4 t,e 1arties# still t,e 5orei0n ar*itral a2ard is

s/*6e+t to 6/di+ial revie2 *4 t,e RTC 2,i+, +an set aside# re6e+t# or va+ate it% 7! t+" "e!"e, +$t t+" Cort +e&% ! C(ung 3u 'ndustries HP(ils.I, 'n. re&e% po!

b JG7ES " $pp&$b&e !"of$r $" t+e fore! $rbtr$& $$r%", +&e f!$& $!% b!%!, %o !ot o"t ort" of r"%to! "!e t+e"e $rbtr$& $$r%" $re !ot $b"o&te

$!% t+ot eepto!" $" t+e $re "t&& %$&& re/e$b&e. C+$pter of RA 9285 +$" m$%e t &e$r t+$t all ar*itral a2ards# 2,et,er domesti+ or 5orei0n# are

s/*6e+t to 6/di+ial revie2 on s1e+i5i+ 0ro/nds 1rovided 5or%

(=- Gro/nds 5or 6/di+ial revie2 di55erent in domesti+ and 5orei0n ar*itral a2ards

*+e di55eren+esbetee! $ f!$& $rbtr$& $$r% from $! !ter!$to!$& or fore! $rbtr$& trb!$& $!% $! $$r% /e! b $ &o$& $rbtr$& tr

or +onditions t,at vest 6/risdi+tiono/er or ort" to re/e t+e $$r%".

For 5orei0n or international ar*itral a2ards 2,i+, m/st 5irst *e +on5irmed *4 t,e RTC# t,e 0ro/nds 5or settin0 aside# re6e+tin

RTC are 1rovided /nder rt% = (3- o5 t,e UNCITRL &odel La2%

For 5inal domesti+ ar*itral a2ards# 2,i+, also need +on5irmation *4 t,e RTC 1/rs/ant to Se+% 3 o5 R DA == and s,a

e@e+/tor4 de+isions o5 t,e RTC# =8 t,e4 ma4 onl4 *e assailed *e5ore t,e RTC and va+ated on t,e 0ro/nds 1rovided /nder Se

(8- RTC de+ision o5 assailed 5orei0n ar*itral a2ard a11eala*le

Se+% =A o5 R 938 1rovides 5or an a11eal *e5ore t,e C as t,e remed4 o5 an a00rieved 1art4 in +ases 2,ere t,e RTC sets as

or +orre+ts an ar*itral a2ard, t+"

SEC. 46.Appeal from Court


24/59

a++o/nt o5 a valid sti1/lation on ar*itration % ,ere an ar*itration +la/se in a +ontra+t is availin0# neit,er o5 t,e 1arties +an /nilaterall4 treat t,e +ontra+t as

res+inded sin+e 2,atever in5ra+tions or *rea+,es *4 a 1art4 or di55eren+es arisin0 5rom t,e +ontra+t m/st *e *ro/0,t 5irst and resolved *4 ar*itration# and

not t,ro/0, an e@tra6/di+ial res+ission or 6/di+ial a+tion%

T,e iss/es arisin0 5rom t,e +ontra+t *et2een PGS&C and OGIES on 2,et,er t,e e7/i1ment and ma+,ineries delivered and installed 2ere 1ro1erl4

installed and o1erational in t,e 1lant in Carmona# Cavite t,e o2ners,i1 o5 e7/i1ment and 1a4ment o5 t,e +ontra+t 1ri+e and 2,et,er t,ere 2as

s/*stantial +om1lian+e *4 OGIES in t,e 1rod/+tion o5 t,e sam1les# 0iven t,e alle0ed 5a+t t,at PGS&C +o/ld not s/11l4 t,e ra2 materials re7/ired to

1rod/+e t,e sam1le LPG +4linders# are matters 1ro1er 5or ar*itration% Indeed# 2e note t,at on $/l4 .# .99# JG7ES !"ttte% $! App&$to! for Arbtr$to!

before t+e JCAB ! Seo&, Jore$ pr"$!t to Art. 15 of t+e Co!tr$t $" $me!%e%. *+", it is in+/m*ent /1on PGS&C to a*ide *4 its +ommitment to ar*itrate%

Coro&&$r&, t,e trial +o/rt 0ravel4 a*/sed its dis+retion in 0rantin0 PGS&Cs &otion 5or Ins1e+tion o5 T,in0s on Se1tem*er 3.# .99 , $" t+e "bet m$tter of

t+e moto! " !%er t+e prm$r r"%to! of t+e mt$&& $ree% $rbtr$& bo%, t+e JCAB ! Jore$.

7! $%%to!, 2,atever 5indin0s and +on+l/sions made *4 t,e RTC Bran+, S,eri55 5rom t,e ins1e+tion made on O+to*er 3# .99# as ordered *4 t,e trial +o/rt

on O+to*er .9# .99# is o5 no 2ort, as said S,eri55 is not te+,ni+all4 +om1etent to as+ertain t,e a+t/al stat/s o5 t,e e7/i1ment and ma+,ineries as installed

in t,e 1lant%

Dor t+e"e re$"o!", t+e September 21, 1998 $!% tober 19, 1998 R*C Orders 1ertainin0 to t,e 0rant o5 t,e ins1e+tion o5 t,e e7/i1ment and ma+,ineries ,ave

to *e re+alled and n/lli5ied%

Iss/e on o2ners,i1 o5 1lant 1ro1er 5or ar*itration

#etto!er $""$&" t+e CA r&! t+$t t+e ""e petto!er r$"e% o! +et+er t+e tot$& o!tr$t pre of S@ 1,530,000 $" for t+e +o&e p&$!t $!% t" !"t$&&$to! "

beo!% t+e $mbt of $ #etto! for Certiorari.

#etto!er?" po"to! " !te!$b&e.

It is settled t,at 7/estions o5 5a+t +annot *e raised in an ori0inal a+tion 5or certiorari%=9 ,et,er or not t,ere 2as 5/ll 1a4ment 5or t,e ma+,ineries and

e7/i1ment and installation is indeed a 5a+t/al iss/e 1ro,i*ited *4 R/le A8%

Koe/er, 2,at a11ears to +onstit/te a 0rave a*/se o5 dis+retion is t,e order o5 t,e RTC in resolvin0 t,e iss/e on t,e o2ners,i1 o5 t,e 1lant 2,en it is t,e

ar*itral *od4 (CB- and not t,e RTC 2,i+, ,as 6/risdi+tion and a/t,orit4 over t,e said iss/e% T,e RTCs determination o5 s/+, 5a+t/al iss/e +onstit/tes

0rave a*/se o5 dis+retion and m/st *e reversed and set aside%

RTC ,as interim 6/risdi+tion to 1rote+t t,e ri0,ts o5 t,e 1arties

A!e!t t+e =& 23, 1998 Order den4in0 t,e iss/an+e o5 t,e in6/n+tive 2rit 1avin0 t,e 2a4 5or PGS&C to dismantle and trans5er t,e e7/i1ment and

ma+,ineries#2e 5ind it to *e in order +onsiderin0 t,e 5a+t/al milie/ o5 t,e instant +ase% +!aEH

Dr"t&, 2,ile t,e iss/e o5 t,e 1ro1er installation o5 t,e e7/i1ment and ma+,ineries mi0,t 2ell *e /nder t,e 1rimar4 6/ris

de+ide# 4et t,e RTC /nder Se+% 3 o5 R 938 ,as 6/risdi+tion to ,ear and 0rant interim meas/res to 1rote+t vested ri0,ts o

pro/%e"

SEC. 28. Grant of interim Measure of Protetion. I -$) It is not in+om1ati*le 2it, an ar*itration a0reement 5or a

*e5ore +onstit/tion o5 t,e tri*/nal# 5rom a Co/rt to 0rant s/+, meas/re . After o!"ttto! of t+e $rbtr$& trb!$

proee%!", $ ree"t for $! !term me$"re of proteto!, or mo%f$to! t+ereof, m$ be m$%e t+ t+e $rbtr$& o

t,e ar*itral tri*/nal ,as no 1o2er to a+t or is /na*le to a+t e55e+tivit4# t,e re7/est ma4 *e made 2it, t,e C

tri*/nal is deemed +onstit/ted 2,en t,e sole ar*itrator or t,e t,ird ar*itrator# 2,o ,as *een nominated#

nomination and 2ritten +omm/ni+ation o5 said nomination and a++e1tan+e ,as *een re+eived *4 t,e 1art4 m

-b) *+e fo&&o! r&e" o! !term or pro/"o!$& re&ef "+$&& be ob"er/e%

A! p$rt m$ ree"t t+$t pro/"o!$& re&ef be r$!te% $$!"t t+e $%/er"e p$rt.

S+ re&ef m$ be r$!te%

-) to 1revent irre1ara*le loss or in6/r4

-) to pro/%e "ert for t+e perform$!e of $! ob&$to!

-) to pro%e or pre"er/e $! e/%e!e or

-/) to ompe& $! ot+er $ppropr$te $t or om""o!.

-) *+e or%er r$!t! pro/"o!$& re&ef m$ be +onditioned /1on t,e 1rovision o5 se+/rit4 or an4 a+t or omissio

order%

-%) 7!term or pro/"o!$& re&ef " ree"te% b rtte! $pp&$to! tr$!"mtte% b re$"o!$b&e me$!" to t+e Cort or $rb

$"e m$ be $!% t+e p$rt $$!"t +om t+e re&ef " "o+t, %e"rb! ! $ppropr$te %et$& t+e pre"e re&ef, t+e p

t+e re&ef " ree"te%, t+e ro!%" for t+e re&ef, $!% t+e e/%e!e "pport! t+e ree"t.

-e) T,e order s,all *e *indin0 /1on t,e 1arties.

-f) Et+er p$rt m$ $pp& t+ t+e Cort for $"""t$!e ! mp&eme!t! or e!for! $! !term me$"re or%ere% b $!

-) A p$rt +o %oe" !ot omp& t+ t+e or%er "+$&& be &$b&e for $&& %$m$e" re"&t! from !o!omp&$!e, !&%!

re$"o!$b&e $ttor!e?" fee", p$% ! obt$!! t+e or%er?" %$& e!foreme!t. -Emp+$"" or".)

Art. 1 -2) of t+e NC7*RA< o%e&


25/59

-2) A! interim meas/re" $! tempor$r me$"re, +et+er ! t+e form of $! $$r% or ! $!ot+er form, b ++, $t $! tme pror to t+e

""$!e of t+e $$r% b ++ t+e %"pte " f!$&& %e%e%, t+e $rbtr$& trb!$& or%er" $ p$rt to

HaI $!t$! or re"tore t+e "t$t" o pe!%! %eterm!$to! of t+e %"pte

HbI *$e $to! t+$t o&% pre/e!t, or refr$! from t$! $to! t+$t " &e& to $"e, rre!t or mm!e!t +$rm or pre%e to t+e

$rbtr$& proe"" t"e&f @*7S$K

HI #ro/%e $ me$!" of pre"er/! $""et" ot of ++ $ "b"ee!t $$r% m$ be "$t"fe% or

HdI #re"er/e e/%e!e t+$t m$ be re&e/$!t $!% m$ter$& to t+e re"o&to! of t+e %"pte.

Art. 1 = of NC7*RA< o%e&


26/59

SECN@ @77S7N

[G.R. No. 16885. Debr$r 5, 2010.]

HERL! BLC !CSIN,petitioner, vs% SHRON !EL &UN!O !CSIN,respondent.

!ECISION

CRPIO,! p

T,e Case

Dor re/e ." $ %"m""$&3of $ "t to e!fore $ po"t'fore! %/ore +&% "to% $reeme!t for &$ of r"%to!.

T,e Fa+ts

#etto!er Herald !a+asin-petto!er), Amer$!, $!% re"po!%e!t S,aron !el &/ndo !a+asin (re"po!%e!t), D&p!o, ere m$rre% ! $!&$ ! Apr& 1994. *+e +$/e

o!e %$+ter, Ste1,anie, bor! o! 21 September 1995. 7! =!e 1999, re"po!%e!t "o+t $!% obt$!e% from t+e Crt Cort, 19t+ =%$& Crt, $!e o/er t+e "t o!"%er! t+e 7&&!o" ort?" rete!to! of r"%to! to e!fore t" %/ore %eree, !&%! t"

Step+$!e to re"po!%e!t -2) t+e %/ore %eree " b!%! o! petto!er fo&&o! t+e ;!$to!$&t r&e; pre/$&! ! t+" r"%to!8

o!tr$/e!! Art&e 2035, p$r$r$p+ 5 of t+e C/& Co%eApro+bt! omprom"e $reeme!t" o! r"%to!.D

#etto!er "o+t reo!"%er$to!, r$"! t+e !e $rme!t t+$t t+e %/ore %eree obt$!e% b re"po!%e!t " /o%. *+", t+e %/o

ort?" eer"e of r"%to! o/er t+e $"e.

7! t" r%er %$te% 23 =!e 2005, t+e tr$& ort %e!e% reo!"%er$to!, +o&%! t+$t !&e ! t+e $"e of re"po!%e!t, t+e %/ore %er

t+e &$" of +" !$to!$&t.

Ke!e, t+" petto!.

#etto!er "bmt" t+e fo&&o! $&ter!$t/e t+eore" for t+e /$&%t of t+e Areeme!t to "tf t" e!foreme!t b t+e tr$& ort -1) t

%/ore %eree, mo%f! t+e term" of +&% "to% from "o&e -m$ter!$&) to o!t or -2) t+e Areeme!t " !%epe!%e!t of t+e %/ore

T,e Iss/e

*+e e"to! " +et+er t+e tr$& ort +$" r"%to! to t$e o!>$!e of petto!er?" "t $!% e!fore t+e Areeme!t o! t+

+&%. 7$AS@

T,e R/lin0 o5 t,e Co/rt

T,e trial +o/rt ,as 6/risdi+tion to entertain 1etitioners s/it */t not to en5or+e t,e 0reement 2,i+, is void . Koe/er, 5a+

militate a0ainst t,e dismissal o5 1etitioners s/it and +all 5or t,e remand o5 t,e +ase to settle t,e 7/estion o5 Ste1,anies +/st

9egional $rial 1ourts Vested with @urisdiction

to nforce 1ontracts

S/*6e+t matter 6/risdi+tion is +on5erred *4 la2% t t,e time 1etitioner 5iled ,is s/it in t,e trial +o/rt# stat/tor4 la2 vests on R

ori0inal 6/risdi+tion over +ivil a+tions in+a1a*le o5 1e+/niar4 estimation% 9 n a+tion 5or s1e+i5i+ 1er5orman+e# s/+, as 1

0reement on 6oint +,ild +/stod4# *elon0s to t,is s1e+ies o5 a+tions% .< T,/s# 6/risdi+tion?2ise# 1etitioner 2ent to t,e ri0,t +

7!%ee%, t+e tr$& ort?" ref"$& to e!tert$! petto!er?" "t $" ro!%e% !ot o! t" &$ of poer to %o "o bt o! t" t+!! t+$t t+

"trppe% t of r"%to!. *+" o!&"o! " !fo!%e%. F+$t t+e 7&&!o" ort ret$!e% $" ;r"%to! . . . for t+e prpo"e of en5o

1rovisions o5 [its] $/d0mentfor @""o&to!.;..#etto!er?" "t "ee" t+e e!foreme!t !ot of t+e ;/$ro" pro/"o!"; of t+e %/or

Areeme!t o! o!t +&% "to%. *+", t+e $to! &e" beo!% t+e >o!e of t+e 7&&!o" ort?" "o'$&&e% ;ret$!e% r"%to!.;
http://cdasiaonline.com/jurisprudences/print/52838#footnote1_0http://cdasiaonline.com/jurisprudences/print/52838#footnote1_0http://cdasiaonline.com/jurisprudences/print/52838#footnote2_0http://cdasiaonline.com/jurisprudences/print/52838#footnote2_0http://cdasiaonline.com/jurisprudences/print/52838#footnote2_0http://cdasiaonline.com/jurisprudences/print/52838#footnote3_0http://cdasiaonline.com/jurisprudences/print/52838#footnote3_0http://cdasiaonline.com/jurisprudences/print/52838#footnote3_0http://cdasiaonline.com/jurisprudences/print/52838#footnote4_0http://cdasiaonline.com/jurisprudences/print/52838#footnote4_0http://cdasiaonline.com/jurisprudences/print/52838#footnote4_0http://cdasiaonline.com/jurisprudences/print/52838#footnote5_0http://cdasiaonline.com/jurisprudences/print/52838#footnote5_0http://cdasiaonline.com/jurisprudences/print/52838#footnote6_0http://cdasiaonline.com/jurisprudences/print/52838#footnote6_0http://cdasiaonline.com/jurisprudences/print/52838#footnote6_0http://cdasiaonline.com/jurisprudences/print/52838#footnote7_0http://cdasiaonline.com/jurisprudences/print/52838#footnote7_0http://cdasiaonline.com/jurisprudences/print/52838#footnote8_0http://cdasiaonline.com/jurisprudences/print/52838#footnote8_0http://cdasiaonline.com/jurisprudences/print/52838#footnote8_0http://cdasiaonline.com/jurisprudences/print/52838#footnote9_0http://cdasiaonline.com/jurisprudences/print/52838#footnote10_0http://cdasiaonline.com/jurisprudences/print/52838#footnote11_0http://cdasiaonline.com/jurisprudences/print/52838#footnote11_0http://cdasiaonline.com/jurisprudences/print/52838#footnote11_0http://cdasiaonline.com/jurisprudences/print/52838#footnote1_0http://cdasiaonline.com/jurisprudences/print/52838#footnote2_0http://cdasiaonline.com/jurisprudences/print/52838#footnote3_0http://cdasiaonline.com/jurisprudences/print/52838#footnote4_0http://cdasiaonline.com/jurisprudences/print/52838#footnote5_0http://cdasiaonline.com/jurisprudences/print/52838#footnote6_0http://cdasiaonline.com/jurisprudences/print/52838#footnote7_0http://cdasiaonline.com/jurisprudences/print/52838#footnote8_0http://cdasiaonline.com/jurisprudences/print/52838#footnote9_0http://cdasiaonline.com/jurisprudences/print/52838#footnote10_0http://cdasiaonline.com/jurisprudences/print/52838#footnote11_0


27/59

Petitioner5s &uit (ac%s 1ause of Action

T,e 5ore0oin0 not2it,standin0# t,e trial +o/rt +annot en5or+e t,e 0reement 2,i+, is +ontrar4 to la2% +STEH

In t,is 6/risdi+tion# 1arties to a +ontra+t are 5ree to sti1/late t,e terms o5 a0reement s/*6e+t to t,e minim/m *an on sti1/lations +ontrar4 to la2# morals#

0ood +/stoms# 1/*li+ order# or 1/*li+ 1oli+4..3t+er"e, t+e o!tr$t " %e!e% &e$& e"te!e, %eeme% ;!e"te!t $!% /o% from t+e be!!!.;.Dor &$ of

re&e/$!t "tp&$to! ! t+e Areeme!t, t+e"e $!% ot+er $!&&$r #+&pp!e "b"t$!t/e &$ "er/e $" %ef$&t p$r$meter" to te"t t+e /$&%t of t+e Areeme!t?" o!t +&%

"to% "tp&$to!". .=

t t,e time t,e 1arties e@e+/ted t,e 0reement on 3 $an/ar4 3 ;no +,ild /nder seven 4ears o5 a0e s,all *e se1arated 5rom t,e mot,er % % % %; .A (T,is stat/tor4 a2ardin0 o5 sole 1arental +/stod4 .D to t,e

mot,er is mandator4# . 0ro/nded on so/nd 1oli+4 +onsideration# .9 s/*6e+t onl4 to a narro2 e@+e1tion not alle0ed to o*tain ,ere%3< - Clearl4 t,en# t,e

0reements o*6e+t to esta*lis, a 1ost?divor+e 6oint +/stod4 re0ime *et2een res1ondent and 1etitioner over t,eir +,ild /nder seven 4ears old +ontravenes

P,ili11ine la2%

T,e 0reement is not onl4 void ab initio5or *ein0 +ontrar4 to la2# it ,as also *een re1/diated *4 t,e mot,er 2,en s,e re5/sed to allo2 6oint +/stod4 *4 t,e

5at,er. *+e Areeme!t o&% be /$&% f t+e "po"e" +$/e !ot %/ore% or "ep$r$te% be$"e t+e &$ pro/%e" for o!t p$re!t$& $t+ort +e! "po"e" &/e

toet+er.3.Koe/er# /1on se1aration o5 t,e s1o/ses# t,e mot,er ta:es sole +/stod4 /nder t,e la2 i5 t,e +,ild is *elo2 seven 4ears old and an4 a0reement

to t,e +ontrar4 is void% *+", t+e &$ ""pe!%" t+e o!t "to% reme for -1) +&%re! !%er "e/e! of -2) "ep$r$te% or %/ore% "po"e". Smp& pt, for $ +&%

t+! t+" $e br$et -$!% for ommo!"e!"$& re$"o!"), t,e la2 de+ides 5or t,e se1arated or divor+ed 1arents ,o2 *est to ta:e +are o5 t,e +,ild and t,at is

to 0ive +/stod4 to t,e se1arated mot,er% Indeed# t,e se1arated 1arents +annot +ontra+t a2a4 t,e 1rovision in t,e Famil4 Code on t,e maternal +/stod4 o5

+,ildren *elo2 seven 4ears an4more t,an t,e4 +an 1rivatel4 a0ree t,at a mot,er 2,o is /nem1lo4ed# immoral# ,a*it/all4 dr/n:# dr/0 addi+t# insane or

a55li+ted 2it, a +omm/ni+a*le disease 2ill ,ave sole +/stod4 o5 a +,ild /nder seven as t,ese are reasons deemed +om1ellin0 to 1re+l/de t,e a11li+ation

o5 t,e e@+l/sive maternal +/stod4 re0ime /nder t,e se+ond 1ara0ra1, o5 rti+le 3.% 33IT!aE

7t && !ot %o to $re t+$t t+e "eo!% p$r$r$p+ of Art&e 213 of t+e D$m& Co%e $pp&e" o!& to %$& "to%$& $reeme!t" b$"e% o! t" tet t+$t ;No +&% !%er

"e/e! e$r" of $e "+$&& be "ep$r$te% from t+e mot+er, !&e"" t,e +o/rtf!%" ompe&&! re$"o!" to or%er ot+er"e.; *o &mt t+" pro/"o!?" e!fore$b&t to ort

"$!to!e% $reeme!t" +&e p&$! pr/$te $reeme!t" beo!% t" re$+ " to "$!to! $ %ob&e "t$!%$r% ! "to% re&$to! of +&%re! !%er "e/e! e$r" o&% of

"ep$r$te% p$re!t". *+" effet/e& empoer" "ep$r$te% p$re!t", b t+e "mp&e epe%e!t of $/o%! t+e ort", to "b/ert $ &e"&$t/e po& /e"t! to t+e "ep$r$te%

mot+er "o&e "to% of +er +&%re! !%er "e/e! e$r" of $e ;to $/o% $ tr$e% +ere $ mot+er +$" "ee! +er b$b tor! $$ from +er.; 3*+" !ore" t+e

&e"&$t/e b$"" t+$t ;[!]o m$! $! "o!% t+e %eep "orro" of $ mot+er +o " %epr/e% of +er +&% of te!%er $e.; 3=

7t o&% /er e&& be t+$t Art&e 213?" b$" f$/or! o!e "ep$r$te% p$re!t -mot+er) o/er t+e ot+er -f$t+er) e!or$e" p$ter!$& !e&et, pre"me" !$p$t for o!t

p$re!t$& "to%, rob" t+e p$re!t" of "to%$& opto!", or +$" %e"o!'m$! betee! t+e "ep$r$te% p$re!t".38Ho2ever# t,ese are o*6e+tions 2,i+,

7/estion t,e la2s 2isdom not its validit4 or /ni5orm en5or+ea*ilit4% T,e 5or/m to air and remed4 t,ese 0rievan+es is t,e le0islat/re# not t,is Co/rt% At $!

r$te, t+e r&e?" "eem! +$r"+!e"" or !%e"r$b&t " tempere% b $!&&$r $reeme!t" t+e "ep$r$te% p$re!t" m$ "+ to e!ter "+ $" r$!t! t+e f$t+er /"t$to!

$!% ot+er pr/&ee". *+e"e $rr$!eme!t" $re !ot !o!""te!t t+ t+e reme of "o&e m$ter!$& "to% !%er t+e "eo!% p$r$r$p+ o

to t+e mot+er 5inal$t+ort o! t+e $re $!% "to% of t+e m!or !%er "e/e! e$r" of $e, ! $"e of %"$reeme!t".

F/rt,er# t,e im1osed +/stodial re0ime /nder t,e se+ond 1ara0ra1, o5 rti+le 3. is limited in d/ration# lastin0 onl4 /ntil t,e

ei0,t, 4ear /ntil t,e +,ilds eman+i1ation# t,e la2 0ives t,e se1arated 1arents 5reedom# s/*6e+t to t,e /s/al +ontra+t/al lim

re0imes t,e4 see 5it to ado1t.


28/59

7!"te$% of or%er! t+e %"m""$& of petto!er?" "t, t+e &o$& e!% to t" &$ of $"e of $to!, e rem$!% t+e $"e for t+e tr$& ort to "ett&e t+e e"to! of

Step+$!e?" "to%. Step+$!e " !o !e$r& 15 e$r" o&%, t+" remo/! t+e $"e ot"%e of t+e $mbt of t+e m$!%$tor m$ter!$& "to% reme !%er Art&e 213

$!% *rin0in0 it 2it,in +overa0e o5 t,e de5a/lt standard on +,ild +/stod4 1ro+eedin0s J t,e *est interest o5 t,e +,ild%


29/59

*+e SOB re7/ired t,e +ontra+tors to s/*mit (.- a 1er5orman+e *ond o5 I!3D.#e% t+e remtt$!e for t" $o!t of t+e $mo!t of SH86,564 -e/$&e!t to

repre"e!t! f&& p$me!t of t+e perform$!e o!ter'$r$!tee for #EC7?" proet ! 7r$. 3

! 6 No/ember 198, #+&$r$!tee !forme% #EC7 t+$t t o&% remt SH86,564 to A& A+& B$!, $!% reter$te% t+e o!t $!% "o&%

to rembr"e t+e petto!er for t+e $%/$!e" m$%e o! t" o!ter'$r$!tee.39

*+e petto!er t+" p$% t+e $mo!t of SH86,564 to A& A+& B$! of J$t o! 21 =$!$r 1988.


30/59

3irst, $ppe&&$!t $!!ot %e! t+e f$t t+$t t $" f&& $$re of t+e "t$t" of proet mp&eme!t$to! $" e&& $" t+e prob&em" be"ett! t+e

o!tr$tor", betee! 1982 to 1985, +$/! "e!t "ome of t" peop&e to B$+%$% %r! t+$t pero%. *+e "e""/e re!e$&"ete!"o!"

of t+e $r$!tee" ! f$t, $" prompte% b %e&$", !ot "o&e& $ttrbt$b&e to t+e o!tr$tor", $!% "+ ete!"o! !%er"t$!%$b& $&&oe%

b t+e SB -proet o!er) ++ +$% !ot $!$ omp&e% t+ t" o!tr$t$& ommtme!t to te!%er 5L of p$me!t ! S @o&&$r",

$!% ++ "t&& ret$!e% o/er%e $mo!t" o&&etb&e b #EC7.

$eond, $ppe&&$!t $" /er m+ $$re of t+e /o&$to!" ommtte% b t+e SB of t" o!tr$t$& !%ert$!" t+ #EC7, pr!p$&&,

t+e p$me!t of fore! rre! -SH) for 5L of t+e tot$& o!tr$t pre, $" e&& $" of t+e omp&$to!" $!% !"te t+$t && re"&t

from t" p$me!t of t+e f&& $mo!t of t+e perform$!e $r$!tee, $" e/%e!t ! #K7


31/59

e55e+t /ntil t,e 5/l5illment o5 t,e +ondition# namel4# t,at t,e 1rin+i1al o*li0or s,o/ld 5ail in ,is o*li0ation at t,e time and in t,e 5orm ,e *o/nd ,imsel5.=


32/59

8. Do&&o! t+e $ppro/e% o!"trto! pror$m of t+e CN*RAC*, po! omp&eto! of t+e /& or" porto! of t+e !"t$&&$to! of

epme!t for t+e b&%!, "+o&% mme%$te& fo&&o, +oe/er, t+e CN*RAC* "pefe% t+$t t+e"e epme!t ++ $re to be !"t$&&e%

$!% to form p$rt of t+e #R=EC* +$/e to be prore% ot"%e 7r$ "!e t+e"e $re !ot be! &o$&& m$!f$tre%. Cop of t+e re&e/$!t

porto! of t+e *e+!$& Spef$to! " +ereto $tt$+e% $" A!!e ;C; $!% m$%e $! !ter$& p$rt +ereof

10. @e to t+e &$ of Dore! rre! ! 7r$ for t+" prpo"e, $!% f o!& to $"""t t+e 7r$ o/er!me!t ! omp&et! t+e #R=EC*,

t+e Contra+tor 2it,o/t an4 o*li0ation on its 1art to do so */t 2it, t,e :no2led0e and +onsent o5 SOB and t,e &inistr4 o5

Ho/sin0 M Constr/+tion o5 Ira7# o55ered to arran0e on *e,al5 o5 SOB# a 5orei0n +/rren+4 loan# t,ro/0, t,e 5a+ilities o5 Cir+le

International S%%# t,e Contra+tors S/*?+ontra+tor and SCE &E!IO CRE!ITO 2,i+, 2ill a+t as t,e 0/arantor 5or t,is 5orei0n

+/rren+4 loan%

Arr$!eme!t" ere fr"t m$%e t+ B$!o % Rom$. Neot$to! "t$rte% ! =!e 1985. SB " !forme% of t+e %e/e&opme!t" of t+"

!eot$to!, $tt$+e% " $ op of t+e %r$ft of t+e &o$! Areeme!t betee! SB $" t+e Borroer $!% Ae!t. *+e Se/er$& B$!", $"


33/59

7! $ !t"+e&&, sin+e t,e 1etitioner 2as a2are o5 t,e +ontra+tor s o/tstandin0 re+eiva*les 5rom SOB# it s,o/ld ,ave set /1 +om1ensation as 2as 1ro1osed in

itsproject situationer% IHTSa

oreo/er, t+e petto!er $" /er m+ $$re of t+e pre%$me!t of t+e re"po!%e!t". 7! f$t, ! t" 13 $ 198 &etter to t+e EAA, @DA, $!&$, t "t$te%

#EC7 $&"o m$!t$!" t+$t t+e %e&$ ! t+e omp&eto! of t+e proet $" m$!& %e to SB?" /o&$to! of o!tr$t term" $!% $" "+,

$&& o! t+e $r$!tee +$" !o b$"".

F+&e #K7


34/59

7! 1981, R+$r% m$rre% Candelaria G/erse4 !ala40on-re"po!%e!t) t+ +om +e +$" to +&%re!, !$me& # im*erl4 and evin%

! tober 12, 1982, A%re?" && $" $&"o $%mtte% to prob$te b t+e t+e! Cort of Dr"t 7!"t$!e of R>$&, Br$!+ 25, Se/e!t+ =%$& @"trt, #$", ! Spe$&

#roee%! No. 9625.=A" $%m!"tr$tor of A%re?" e"t$te ! t+e #+&pp!e", petto!er f&e% $! !/e!tor $!% $ppr$"$& of t+e fo&&o! properte" -1) A%re?"

o!$& "+$re ! re$& e"t$te t+ mpro/eme!t" &o$te% $t 28 #& A/e!e, Dorbe" #$r, $$t, etro $!&$, /$&e% $t #64,865.00 -$$t propert) -2) $ rre!t

$o!t ! A%re?" !$me t+ $ $"+ b$&$!e of #12,41.9 $!% -3) 64,444 "+$re" of "to ! AG 7!teror", 7!. ort+ #64,444.00.8

! =& 20, 1984, R+$r% %e%, &e$/! $ &&, +ere! +e bee$t+e% +" e!tre e"t$te to re"po!%e!t, "$/e for +" r+t" $!% !tere"t" o/er t+e AG 7!teror", 7!.

"+$re", ++ +e &eft to J&e.A*+e && $" $&"o $%mtte% to prob$te b t+e rp+$!?" Cort of A!! Ar!%e&, $r&$!%, .S.A, $!% =$me" N. #+&&p" $" &e"e

$ppo!te% $" eetor, +o ! tr!, %e"!$te% tt4% illiam /as,a or $! member of t+e O$"+$ A"per&&$ A!+et$ #e!$ ( No&$"o


35/59

petto!er $" %t'bo!% to fo&&o t+e epre"" term" of Abre?" &&, $!% +" %e!$& of !o&e%e of t+e &$" of $r&$!% $!!ot "t$!% be$"e petto!er " $ "e!or

p$rt!er ! $ pre"to" &$ frm $!% t $" +" %t to !o t+e re&e/$!t &$".

Re"po!%e!t $&"o "t$te" t+$t "+e $" !ot $b&e to f&e $! oppo"to! to t+e proet of p$rtto! be$"e "+e $" !ot $ p$rt t+ereto $!% "+e &e$r!e% of t+e pro/"o! of

Abre?" && bee$t+! e!tre& +er e"t$te to R+$r% o!& $fter Att. A!+et$ f&e% $ proet of p$rtto! ! Spe$& #roee%! No. '888 for t+e "ett&eme!t of

R+$r%?" e"t$te.

de+ree o5 distri*/tion o5 t,e estate o5 a de+eased 1erson vests t,e title to t,e land o5 t,e estate in t,e distri*/tees# 2,i+,# i5 erroneo/s ma4 *e +orre+ted

*4 a timel4 a11eal% On+e it *e+omes 5inal# its *indin0 e55e+t is li:e an4 ot,er 6/d0ment in re m%3 Ho2ever# in e@+e1tional +ases# a 5inal de+ree o5

distri*/tion o5 t,e estate ma4 *e set aside 5or la+: o5 6/risdi+tion or 5ra/d% 3=Drt+er, ! %amon ". Ortu2ar,38t+e Cort r&e% t+$t a 1art4 interested in a

1ro*ate 1ro+eedin0 ma4 ,ave a 5inal li7/idation set aside 2,en ,e is le5t o/t *4 reason o5 +ir+/mstan+es *e4ond ,is +ontrol or t,ro/0, mista:e or

inadverten+e not im1/ta*le to ne0li0en+e% 3A

*+e petto! for $!!&me!t $" f&e% before t+e CA o! tober 20, 1993, before t+e ""$!e of t+e 199 R&e" of C/& #roe%re +e!e, t+e $pp&$b&e &$ " Batas

Pambansa Blg. 129 -B.#. 129) or t+e =%$r Reor$!>$to! At of 1980. n ann/lment o5 6/d0ment 5iled /nder B%P% .39 ma4 *e *ased on t,e 0ro/nd t,at a

6/d0ment is void 5or 2ant o5 6/risdi+tion or t,at t,e 6/d0ment 2as o*tained *4 e@trinsi+ 5ra/d% 3DFor 5ra/d to *e+ome a *asis 5or ann/lment o5 6/d0ment# it

,as to *e e@trinsi+ or a+t/al# 3 and m/st *e *ro/0,t 2it,in 5o/r 4ears 5rom t,e dis+over4 o5 t,e 5ra/d% 39

7! t+e pre"e!t $"e, re"po!%e!t $&&ee% etr!" fr$% $" b$"" for t+e $!!&me!t of t+e R*C r%er" %$te% Debr$r 12, 1988 $!% Apr& , 1988. *+e CA fo!% mert !

re"po!%e!t?" $"e $!% fo!% t+$t petto!er?" f$&re to fo&&o t+e term" of A%re?" &&, %e"pte t+e &$tter?" %e&$r$to! of oo% f$t+, $mo!te% to etr!" fr$%. *+e

CA r&e% t+$t !%er Art&e 16 of t+e C/& Co%e, t " t+e !$to!$& &$ of t+e %ee%e!t t+$t " $pp&$b&e, +e!e, petto!er "+o&% +$/e %"trbte% Abre?" e"t$te !

$or%$!e t+ t+e term" of +er &&. *+e CA $&"o fo!% t+$t petto!er $" prompte% to %"trbte A%re?" e"t$te ! $or%$!e t+ #+&pp!e &$" ! or%er to

e$&& be!eft A%re $!% R+$r% Ger"e?" $%opte% %$+ter, J&e Ger"e K&&. S*E$7

#etto!er o!te!%" t+$t re"po!%e!t?" $"e of $to! +$% $&re$% pre"rbe% be$"e $" e$r& $" 1984, re"po!%e!t $" $&re$% e&& $$re of t+e term" of A%re?"

&&,


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o!tr$r !te!t " epre""& !%$te% ! t+e &&, $ &e$ p$""e" to t+e &e$tee t+e e!tre !tere"t of t+e te"t$tor ! t+e propert ++ "

% % % 2,atever 1/*li+ 1oli+4 or 0ood +/stoms ma4 *e involved in o/r s4stem o5 le0itimes# Con0ress ,as not i


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t+e "bet of t+e &e$;. Seto! '101, *t&e , Sb'*t&e 1, o! t+e ot+er +$!%, %e&$re" t+$t ;$ per"o!$& repre"e!t$t/e " $ f%$r;

$!% $" "+ +e " ;!%er t+e e!er$& %t to "ett&e $!% %"trbte t+e e"t$te of t+e %ee%e!t ! $or%$!e t+ t+e term" of t+e && $!%

t+e e"t$te of %ee%e!t" &$ $" epe%to"& $!% t+ $" &tt&e "$rfe of /$&e $" " re$"o!$b&e !%er t+e rm"t$!e";.=

In ,er 2ill# /dre4 devised to Ri+,ard ,er entire estate# +onsistin0 o5 t,e 5ollo2in0> (.- /dre4s +on6/0al s,are in t,e &a:ati 1ro1ert4 (3- t,e +as, amo/nt

o5 P.3#=.D%9D and (- A=#=== s,ares o5 sto+: in G Interiors# In+% 2ort, PA=#===%$to! of !$tr$& re"ore" of t+e #+&pp!e", %oe" !ot !&%e t+e $"to! or ep&ot$

*+e pro+bto! $$!"t $"to! of pr/$te &$!%" b $&e!" $" $rre% o! to t+e 193 Co!"ttto! !%er Art&e 7, Seto! 14,

$re% b +ere%t$r "e""o! $!% +e! t+e tr$!"fer $" m$%e to $ former !$tr$&'bor! t>e!, $" pro/%e% ! Seto! 15, Art&e

II# Se+tions D and o5 t,e .9A Constit/tion e@1li+itl4 1ro,i*its non?Fili1inos 5rom a+7/irin0 or ,oldin0 title to 1rivate la

domain# e@+e1t onl4 *4 2a4 o5 le0al s/++ession or i5 t,e a+7/isition 2as made *4 a 5ormer nat/ral?*orn +itien%

7! $! $"e# t,e Co/rt ,as also r/led t,at i5 land is invalidl4 trans5erred to an alien 2,o s/*se7/entl4 *e+omes a +itien or tr

in t,e ori0inal transa+tion is +onsidered +/red and t,e title o5 t,e trans5eree is rendered valid% =9In t,is +ase# sin+e t,e &a:a

on to res1ondent 2,o is a Fili1ino# t,en 2,atever 5la2# i5 an4# t,at attended t,e a+7/isition *4 t,e G/erse4s o5 t,e &a:ati 1r

as t,e o*6e+tive o5 t,e +onstit/tional 1rovision to :ee1 o/r lands in Fili1ino ,ands ,as *een a+,ieved%

FKEREDRE, t+e petto! " %e!e%. *+e @e"o! %$te% $r+ 18, 1999 $!% t+e Re"o&to! %$te% A"t 2, 1999 of t+e Cort of Ap

#etto!er " A@N7SKE@ to be more rm"pet ! t+e perform$!e of +" %te" $" $! off$& of t+e ort.

No pro!o!eme!t $" to o"t".

S R@ERE@.

Calle>o, $r.,$!% C(io1a2ario, !!.,o!r.

Panganiban, C.!.,! t+e re"&t.

nares1$antiago, !.," o! &e$/e.

SECN@ @77S7N
http://cdasiaonline.com/jurisprudences/print/10797#footnote43_0http://cdasiaonline.com/jurisprudences/print/10797#footnote43_0http://cdasiaonline.com/jurisprudences/print/10797#footnote44_0http://cdasiaonline.com/jurisprudences/print/10797#footnote44_0http://cdasiaonline.com/jurisprudences/print/10797#footnote45_0http://cdasiaonline.com/jurisprudences/print/10797#footnote45_0http://cdasiaonline.com/jurisprudences/print/10797#footnote45_0http://cdasiaonline.com/jurisprudences/print/10797#footnote46_0http://cdasiaonline.com/jurisprudences/print/10797#footnote46_0http://cdasiaonline.com/jurisprudences/print/10797#footnote47_0http://cdasiaonline.com/jurisprudences/print/10797#footnote49_0http://cdasiaonline.com/jurisprudences/print/10797#footnote49_0http://cdasiaonline.com/jurisprudences/print/10797#footnote49_0http://cdasiaonline.com/jurisprudences/print/10797#footnote43_0http://cdasiaonline.com/jurisprudences/print/10797#footnote44_0http://cdasiaonline.com/jurisprudences/print/10797#footnote45_0http://cdasiaonline.com/jurisprudences/print/10797#footnote46_0http://cdasiaonline.com/jurisprudences/print/10797#footnote47_0http://cdasiaonline.com/jurisprudences/print/10797#footnote49_0


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Cort. Co!tr$r to petto!er"? "t$!e, "!e t+" &$tter r&e $pp&e" o!& to reprob$te of $ &&, t $!!ot be m$%e to $pp& to t+e pre"e!t $"e. In re1ro*ate# t,e lo+al EL&R O% PERE',petitioner, vs% COURT OF PPELS# Fi5t, !ivision# TRISTN % CTIN!IG an


39/59

+o/rt a+:no2led0es as *indin0 t,e 5indin0s o5 t,e 5orei0n 1ro*ate +o/rt 1rovided its 6/risdi+tion over t,e matter +an *e esta*lis,ed% +aTI!E

Be"%e", petto!er"? "t$!% " fr$+t t+ mpr$t$&&. 7f t+e !"ttte% +er" %o !ot +$/e t+e me$!" to o $bro$% for t+e prob$te of t+e &&, t " $" oo% $" %epr/!

t+em otr+t of t+er !+ert$!e, "!e or &$ rere" t+$t !o && "+$&& p$"" et+er re$& or per"o!$& propert !&e"" t+e && +$" bee! pro/e% $!% $&&oe% b t+e

proper ort.

Not$b&, t+e $""$&e% R*C or%er of =!e 1, 2004 " !ot+! more t+$! $! !t$& r&! t+$t t+e ort $! t$e o!>$!e of t+e petto! for prob$te of Rpert$?" &&

$!% t+$t, ! t+e me$!tme, t $" %e"!$t! Er!e"to $" "pe$& $%m!"tr$tor of t+e e"t$te. T,e 1arties ,ave 4et to 1resent eviden+e o5 t,e d/e e@e+/tion o5 t,e

2ill# i.e.,t,e testators state o5 mind at t,e time o5 t,e e@e+/tion and +om1lian+e 2it, t,e 5ormalities re7/ired o5 2ills *4 t,e la2s o5 Cali5ornia . *+" ep&$!"

t+e tr$& ort?" %ret/e for Er!e"to to "bmt t+e %& $t+e!t$te% op of Rpert$?" && $!% t+e ertfe% ope" of t+e e% ! t+e #+&pp!e" $!% t+$t +er m$rr$e to *r"t$! $" %eeme% /o% !%er #+&pp!e &$. F+e! "+e o!fro

$""re% +er t+$t +e o&% &e$&>e t+er !o! $fter +e obt$!" $! $!!&me!t of +" m$rr$e t+


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!form$to! ++ m+t $% t+e tr$& ort $t $ trt+f&, f$r $!% "t $%%$to! of t+e $!!&me!t $"e, ++ t+e tr$& ort r$!te% o! September 30, 2002.

#etto!er?" omp&$!t'!'!ter/e!to! $" $&"o or%ere% $%mtte%.

*r"t$! f&e% $ petto! for ertiorari$!% pro+bto! t+ t+e Cort of Appe$&" "ee! to $!!& t+e or%er %$te% September 30, 2002 of t+e tr$& ort. *+e Cort of

Appe$&" r$!te% t+e petto! $!% %e&$re% $" !&& $!% /o% t+e September 30, 2002 r%er of t+e tr$& ort r$!t! t+e moto! for &e$/e to f&e !ter/e!to! $!%

$%mtt! t+e omp&$!t'!'!ter/e!to!.

#etto!er?" moto! for reo!"%er$to! $" %e!e%, +e!e t+" petto! for ertiorari$!% pro+bto! f&e% !%er R&e 65 of t+e R&e" of Cort. #etto!er o!te!%" t+$t

t+e Cort of Appe$&" r$/e& $b"e% t" %"reto! ! %"re$r%! +er &e$& !tere"t ! t+e $!!&me!t $"e betee! *r"t$! $!% [a] le0al interest in t,e matter in liti0ation and [*] +onsideration m/st *e 0iven as to 2,et,er t,e ad6/di+ation o5 t,e

ori0inal 1arties ma4 *e dela4ed or 1re6/di+ed# or 2,et,er t,e intervenors ri0,ts ma4 *e 1rote+ted in a se1arate 1ro+eedin0 or not% .A

either gain or lose by direct legal operation and effect of the judgment%.DS/+, interest m/st *e a+t/al# dire+t and material#

e@1e+tant% .

#etto!er &$m" t+$t +er "t$t" $" t+e fe $!% omp$!o! of *r"t$! for 1 e$r" /e"t" +er t+ t+e re"te &e$& !tere"t rere% of

R&e" of Cort. 7CA$K

#etto!er?" &$m &$" mert. Under t,e la2# 1etitioner 2as never t,e le0al 2i5e o5 Tristan# ,en+e ,er +laim o5 le0al interest ,as

,en 1etitioner and Tristan married on $/l4 .=# .9=# Tristan 2as still la25/ll4 married to Lil4% T,e divor+e de+ree t,at Tris

!omini+an Re1/*li+ never dissolved t,e marria0e *ond *et2een t,em%It is *asi+ t,at la2s relatin0 to 5amil4 ri0,ts and d/t

and le0al +a1a+it4 o5 1ersons are *indin0 /1on +itiens o5 t,e P,ili11ines# even t,o/0, livin0 a*road% .9Re0ardless o5 2,

mi0,t *e# ,e or s,e 2ill *e 0overned *4 P,ili11ine la2s 2it, res1e+t to ,is or ,er 5amil4 ri0,ts and d/ties# or to ,is or ,e

+a1a+it4% Hen+e# i5 a Fili1ino re0ardless o5 2,et,er ,e or s,e 2as married ,ere or a*road# initiates a 1etition a*road to o*

s1o/se and event/all4 *e+omes s/++ess5/l in 0ettin0 an a*sol/te divor+e de+ree# t,e P,ili11ines 2ill not re+o0nie s/+, a*

F+e! *r"t$! $!%


41/59


42/59

s,i1# 2it,o/t leave# */t an /na/t,oried a*sen+e 5rom t,e s,i1 2it, an intention not to ret/rn to ,er servi+e or as it is o5ten

e@1ressed animononrevertendi t,at is 2it, an intention to desert .9 (em1,asiss/11lied-

SEC*7N K. *ER7NA*7N D E#


43/59

e@1ressed# animo non revertendi# t,at is# 2it, an intention to desert% .9 (em1,asis s/11lied-

Ke!e# 5or a seaman to *e +onsidered as 0/ilt4 o5 desertion# it is essential t,at t,ere *e eviden+e to 1rove t,at i5 ,e leaves t,e s,i1 or vessel in

2,i+, ,e ,ad en0a0ed to 1er5orm a vo4a0e# ,e ,as t,e +lear intention o5 a*andonin0 ,is d/t4 and o5 not ret/rnin0 to t,e s,i1 or vessel%7! t+e

pre"e!t $"e, +oe/er, petto!er" f$&e% to pre"e!t &e$r $!% o!/!! proof to "+o t+$t +e! pr/$te re"po!%e!t mpe% "+p, +e !o &o!er +$% t+e

!te!to! of retr!!. *+e f$t $&o!e t+$t +e mpe% off t+e "+p +ere +e $" "t$to!e%, "$m to "+ore $!% "o+t me%$& $"""t$!e for t+e !r +e

""t$!e% " !ot $ "ffe!t b$"" for petto!er" to o!&%e t+$t +e +$% t+e !te!to! of %e"ert! +" po"t. Sett&e% " t+e r&e t+$t ! term!$to! $"e", t+e

br%e! of proof re"t" po! t+e emp&oer to "+o t+$t t+e %"m""$& " for $ "t $!% /$&% $"e.3


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11 11 11 1 4 ( - # 0

im1lementin0 r/les and re0/lations and ot,er la2s a55e+tin0 la*or a11l4 in t,is +ase%3Aor%!&, $" to t+e rereme!t of !ote $!% +e$r! ! t+e $"e of $

"e$f$rer, t+e Cort +$" $&re$% r&e% ! $ !mber of $"e" t+$t *e5ore a seaman +an *e dismissed and dis+,ar0ed 5rom t,e vessel# it is re7/ired t,at ,e *e

0iven a 2ritten noti+e re0ardin0 t,e +,ar0es a0ainst ,im and t,at ,e *e a55orded a 5ormal investi0ation 2,ere ,e +o/ld de5end ,imsel5 1ersonall4 or

t,ro/0, a re1resentative% 39 Hen+e# t,e em1lo4er s,o/ld stri+tl4 +om1l4 2it, t,e t2in re7/irements o5 noti+e and ,earin0 2it,o/t re0ard to t,e nat/re and

sit/s o5 em1lo4ment or t,e nationalit4 o5 t,e em1lo4er % Petitioners 5ailed to +om1l4 2it, t,ese t2in re7/irements% aEHCI

#etto!er" $&"o o!te!% t+$t t+e $e" of pr/$te re"po!%e!t from A"t 11'22, 1996 ere $pp&e% to t+e o"t" of +" rep$tr$to!. #etto!er" $re t+$t t+e off'

"ett! of t+e o"t" of +" rep$tr$to! $$!"t +" $e" for t+e $foreme!to!e% pero% " $&&oe% !%er t+e pro/"o!" of Seto! 19-E) of emor$!%m Cr&$r No.

055'96 ++ pro/%e" t+$t +e! t+e "e$f$rer " %"+$re% for $! "t $"e, t+e emp&oer "+$&& +$/e t+e r+t to reo/er t+e o"t" of +" rep&$eme!t $!%

rep$tr$to! from t+e "e$f$rer?" $e" $!% ot+er e$r!!".

*+e Cort %oe" !ot $ree. Seto! 19-E) of emor$!%m Cr&$r No. 055'96 +$" t" o!terp$rt pro/"o! !%er Seto! K -2), #$rt 77 of emor$!%m Cr&$r No.

41, to t

SEC*7N K. RE#A*R7A*7N

2. F+e! t+e "e$m$! " %"+$re% for %"p&!$r re$"o!", t+e emp&oer "+$&& +$/e t+e r+t to reo/er t+e o"t" of m$!te!$!e $!%

rep$tr$to! from t+e "e$m$!?" b$&$!e of $e" $!% ot+er e$r!!".

It is +lear /nder t,e a*ove?7/oted 1rovision t,at t,e em1lo4er s,all ,ave t,e ri0,t to re+over t,e +ost o5 re1atriation 5rom t,e seamans 2a0es and

ot,er earnin0s onl4 i5 t,e +on+erned seaman is validl4 dis+,ar0ed 5or dis+i1linar4 meas/res%7! t+e pre"e!t $"e, "!e petto!er" 5ailed to 1rove t,at

1rivate res1ondent 2as validl4 terminatedfrom emp&ome!t o! t+e ro!% of %e"erto!, t o!& fo&&o" t+$t t+e %o !ot +$/e t+e r+t to %e%t t+e o"t" of

pr/$te re"po!%e!t?" rep$tr$to! from +" $e" $!% ot+er e$r!!".


45/59

7! $rr! ot $!% !terpret! t+e o, $r.$!% C(io1a2ario, !!.,o!r.

Panganiban, C.!.,retre% $" of @eember , 2006.
http://cdasiaonline.com/jurisprudences/print/10003#footnote33_0http://cdasiaonline.com/jurisprudences/print/10003#footnote33_0http://cdasiaonline.com/jurisprudences/print/10003#footnote33_0http://cdasiaonline.com/jurisprudences/print/10003#footnote33_0


46/59

3. 7@. 7@. DRA


47/59

propert to +" "eo!% fe $!% +&%re! b +er " &$r!& "+o! ! t+e && +e eete%. Fe %o !ot "+ to fr"tr$te +" "+e", "!e +e $" $ fore!er, !ot o/ere%

b or &$" o! ;f$m& r+t" $!% %te", "t$t", o!%to! $!% &e$& $p$t.; F+et+er t+e && " !tr!"$&& /$&% $!% +o "+$&& !+ert from o $re ""e" be"t

pro/e% b fore! &$ ++ m"t be p&e$%e% $!% pro/e%. F+et+er t+e && $" eete% ! $or%$!e t+ t+e form$&te" rere% " $!"ere% b referr! to

#+&pp!e &$. 7! f$t, t+e && $" %& prob$te%. A" $ %e +oe/er, t+e tr$& ort "+o&% !ote t+$t +$te/er pb& po& or oo% "tom" m$ be !/o&/e% ! or

""tem of &etme", Co!re"" %% !ot !te!% to ete!% t+e "$me to t+e "e""o! of fore! !$to!$&". Co!re"" "pef$&& &eft t+e $mo!t of "e""o!$& r+t" to

t+e %ee%e!t?" !$to!$& &$.

! E C I S I O N

PR!O,! p

#(e Case

*+e $"e r$"e" $ o!f&t of &$" ""e.

F+$t " before " " $! $ppe$& from t+e %e"o! of t+e Cort of Appe$&" .mo%f! t+$t of t+e Reo!$& *r$& Cort, C$m$r!e" Sr, Br$!+ 35, 7r$ Ct 3%e&$r!

re"po!%e!t li+ia F% Llorente-+ere!$fter referre% to $" ;A&$;), $" o'o!er" of +$te/er propert "+e $!% t+e %ee$"e% o N. $to! No. 559816 $" ""e% ! +" f$/or b t+e !te% St$te"

@"trt Cort, Sot+er! @"trt of Ne :or.A

po! t+e &ber$to! of t+e #+&pp!e" b t+e Amer$! Dore" ! 1945, o $" r$!te% $! $re% &e$/e b t+e .S. N$/, to /"t +" fe $!% +e /"te% t+e

#+&pp!e".DKe %"o/ere% t+$t +" fe #$&$ $" pre!$!t $!% $" ;&/! !; $!% +$/! $! $%&tero" re&$to!"+p t+ +" brot+er, Ce5erino Llorente%

o ref"e% to for/e #$&$ $!% &/e t+ +er. 7! f$t, o! Debr$r 2, 1946, t+e op&e %re $ rtte! $reeme!t to t+e effet t

$&&otte% b t+e !te% St$te" N$/ $" p$rt of o?" "$&$r $!% $&& ot+er ob&$to!" for #$&$?" %$& m$!te!$!e $!% "pport o

%""o&/e t+er m$rt$& !o! ! $or%$!e t+ %$& proee%!" -3) t+e o&% m$e $ "ep$r$te $reeme!t re$r%! t+er o!

m$rt$& &fe $!% -4) o o&% !ot pro"ete #$&$ for +er $%&tero" $t "!e "+e /o&!t$r& $%mtte% +er f$&t $!% $ree% to "e

*+e $reeme!t $" "!e% b bot+ o $!% #$&$ $!% $" t!e""e% b #$&$?" f$t+er $!% "tepmot+er. *+e a0reement 2as no

Osa*el%.e% C$!$%$! t>e!. 7t r&e% t+$t only t(e 3ilipino spouse an a"ail of t(e remedy, under t(e seond

paragrap( of Artile 7 of t(e 3amily Code,! or%er for +m or +er to be $b&e to rem$rr !%er #+&pp!e &$.9Art&e 26 of t+e D$m& Co%e re$%"

Art. 26.A&& m$rr$e" "o&em!>e% ot"%e t+e #+&pp!e", ! $or%$!e t+ t+e &$" ! fore ! t+e o!tr +ere t+e ere

"o&em!>e%, $!% /$&% t+ere $" "+, "+$&& $&"o be /$&% ! t+" o!tr, eept t+o"e pro+bte% !%er Art&e" 35-1), -4), -5) $!% -6), 36,

3 $!% 38.

,ere a marria0e *et2een a Fili1ino +itien and a 5orei0ner is validl4 +ele*rated and a divor+e is t,erea5ter validl4 o*tained

a*road *4 t,e alien s1o/se +a1a+itatin0 ,im or ,er to remarr4# t,e Fili1ino s1o/se s,all li:e2ise ,ave +a1a+it4 to remarr4

/nder P,ili11ine la2%

*+" o!&"o!, t+e R*C "t$te%, " o!""te!t t+ t+e &e"&$t/e !te!t be+!% t+e e!$tme!t of t+e "eo!% p$r$r$p+ of Art&e 26 of t+e D$m& Co%e, $"

%eterm!e% b t+e Cort !%epubli ". Orbeido ''' .o! C. A!o, ! t+e e

!%er t+e Dree%om Co!"ttto!,.9e!$te% Eet/e r%er No. HEOI22, $me!%! Art&e 26 of t+e D$m& Co%e to t" pre"e!t or%

Art. 26.A&& m$rr$e" "o&em!>e% ot"%e t+e #+&pp!e", ! $or%$!e t+ t+e &$" ! fore ! t+e o!tr

"o&em!>e%, $!% /$&% t+ere $" "+, "+$&& $&"o be /$&% ! t+" o!tr, eept t+o"e pro+bte% !%er Art&e" 35-1),

3 $!% 38.

,ere a marria0e *et2een a Fili1ino +itien and a 5orei0ner is validl4 +ele*rated and a divor+e is t,erea5te

a*road *4 t,e alien s1o/se +a1a+itatin0 ,im or ,er to remarr4# t,e Fili1ino s1o/se s,all li:e2ise ,ave +a1

/nder P,ili11ine la2%

*+ro+ t+e "eo!% p$r$r$p+ of Art&e 26 of t+e D$m& Co%e, E 22 effet/e& !orpor$te% !to t+e &$ t+" Cort?" +o&%

!r.3e% t+$t t+e fore! %/ore +$% $&re$%

betee! t+e "po"e". *+e Cort re$"o!e% ! :an


52/59

G/e! t+e r$to!$&e $!% !te!t be+!% t+e e!$tme!t, $!% t+e prpo"e of t+e "eo!% p$r$r$p+ of Art&e 26 of t+e D$m& Co%e, t+e RTC 2as +orre+t in limitin0 t,e

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