Cases Preamble Topic

8/18/2019 Cases Preamble Topic

1/31

DELA CRUZ, EILEEN EIKA STAT CON

FLORENCIO EUGENIO, doing business under the name E & S Delta Village

VS.

EXECUTIVE SECRETARY FRANKLIN M. DRILON, HOUSING AND LAND USE

REGULATORY BOARD (HLURB) AND PROSPERO PALMIANO

G.R. No. 109404, January 22, 1996

TOPIC: PreambleP.D. 957

Facts:Prospero Palmiano on installment basis from Eugenio, the petitioner, and his co-owner/developer Fermin Salazar, two lots in the E

& S Delta Village in Quezon City. He started to default on amortization payments beginning May 1975 due to the petitioner ’s non-

development of the said lots. Further, the petitioner sold one of the two lots to Rodolfo and Adelina Relevo upon Palmiano’s

cease of payment.

Eugenio then filed a petition to set aside the decision of the respondent, which affirmed the order of the Housing and Land

Use Regulatory Board to

“Immediately refund to the complainant-appellant Prospero Palmiano all payments made thereon, plus interests computed at legal

rates from date of receipt hereof until fully paid." Petitioner avers that the Executive Secretary erred in applying P.D. 957 and in

concluding that the non-development of the E & S Delta Village justified private respondent's non-payment of his amortizations.

Further, the petitioner avers that inasmuch as the land purchase agreements were entered into in 1972,prior to the effectivity of P.D.

957 in 1976, said law couldn’t govern the transaction.

Issue: WON Executive Secretary Drilon showed a grave abuse in discretion when he applied P.D. 957and concluded that the non-

development of the E & S Delta Village justified private respondent's non-payment of his amortizations.

Held:The respondent Executive Secretary did not abuse his discretion, and that P.D. 957 is to be given retroactive effect so as to cover

even those contracts executed prior to its enactment in1976 given that the intent of the law, as culled from its preamble and from the

situation, circumstances and conditions it sought to remedy, must be enforced. Moreover, the preamble of the law clearly expresses

that the law’s intent is to protect helpless citizens who may fall prey to the manipulations and machinations of "unscrupuloussubdivision and condominium sellers," suggesting that to remedy the said alarming situations, P.D. 957 should operate

retrospectively even upon contracts already in existence at the time of its enactment.


2/31


KUWAIT AIRWAYS, CORPORATION,

Petitioner, Present: CARPIO MORALES, J.,* Acting Chairperson,

- versus -

PHILIPPINE AIRLINES, INC.,

TINGA, VELASCO, LEONARDO-DE CASTRO and BRION, JJ.Resondent! Pro"u#$ated:

G!R! No! %&'()*

TINGA, J.:

T+is etition or revie.%/ i#ed 01 t+e du#1 desi$nated air 2arrier o t+e 3uait Govern"ent

assai#s a de2ision.4/ dated 4& O2to0er 4((4 o t+e Ma5ati Re$iona# Tria# Court 6RTC7, Bran2+

'(, orderin$ 3uait Aira1s to a1 resondent P+i#iine Air#ines t+e a"ount o

8S9%,(4,'(!((, #us interest, attorne1s ees, and 2ost o suit!.;/ T+e rin2ia# #ia0i#it1

reresents t+e s+are to P+i#iine Air#ines in t+e revenues t+e orei$n 2arrier +ad earned or t+e

u#it o assen$ers and 2ar$o in its #i$+ts to and ro" 3uait and Mani#a +i2+ t+e orei$n

2arrier 2o""itted to re"it as a 2ontra2tua# o0#i$ation!

On 4% O2to0er %)%, 3uait Aira1s and P+i#iine Air#ines entered into a Co""er2ia#A$ree"ent,.oint Servi2es A$ree"ent.&/ 0eteen t+e to air#ines! T+e

Co""er2ia# A$ree"ent 2overed a ti2e ee5#1 3uait Aira1s #i$+t on t+e route 3uait-

Ban$5o5-Mani#a and vi2e versa!.'/ T+e a$ree"ent stiu#ated t+at on#1 ;rd and

"ai# and 2ar$o ta5en on in

t+e territor1 o t+e State +ose nationa#it1 t+e air2rat ossesses 6T+ird ?reedo"7@ .t/+e

rivi#e$e to ta5e on assen$ers, "ai# or 2ar$o destined or t+e territor1 o t+e State +ose

nationa#it1 t+e air2rat ossesses 6?ourt+ ?reedo"7@ and t+e ri$+t to 2arr1 assen$ers ro" ones

on 2ountr1 to a se2ond 2ountr1, and ro" t+at 2ountr1 to a t+ird 2ountr1 6?it+ ?reedo"7! In

http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn1http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn3http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn4http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn5http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn6http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn7http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn8http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn9http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn3http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn4http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn5http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn6http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn7http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn8http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn9http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn1


3/31


essen2e, t+e 3uait Aira1s #i$+t as aut+oried to 0oard assen$ers in 3uait and de#ane

t+e" in Mani#a, as e## as to 0oard assen$ers in Mani#a and de#ane t+e" in 3uait! At t+e

sa"e ti"e, it+ t+e #i"itation in t+e e=er2ise o ?it+ ?reedo" trai2 ri$+ts, t+e #i$+t as

0arred ro" 0oardin$ assen$ers in Ban$5o5and de#anin$ t+e" in Mani#a, or 0oardin$

assen$ers in Mani#a and de#anin$ t+e" in Ban$5o5!

T+e Co""er2ia# A$ree"ent #i5eise adverted to t+e anne=ed >oint Servi2es A$ree"ent

2overin$ t+e 3uait-Mani#a 6and vi2e versa7 route, +i2+ 0ot+ air#ines +ad entered into .i/n

order to re#e2t t+e +i$+ #eve# o riend#1 re#ations+is 0eteen .3uait Aira1s/ and

.P+i#iine Air#ines/ and to assist ea2+ ot+er to deve#o trai2 on t+e route! .)/ T+e A$ree"ent

#i5eise stiu#ated t+at .u/nti# su2+ ti"e as .P+i#iine Air#ines/ 2o""en2es its oerations to or

via 3uait, t+e >oint Servi2es s+a## 0e oerated it+ t+e use o .3uait Aira1s/ air2rat and

2re!./ B1 virtue o t+e >oint Servi2es A$ree"ent,

P+i#iine Air#ines as entit#ed to seat a##o2ations on se2iied

3uait Aira1s se2tors, se2ia# rorates or use 01 P+i#iine Air#ines to se2iied

3uait Aira1s se2tors, oint advertisin$ 01 0ot+ 2arriers in ea2+ ot+ers ti"eta0#es and ot+er

$enera# advertisin$, and "utua# assistan2e to ea2+ ot+er it+ rese2t to t+e deve#o"ent o

trai2 on t+e route!.%(/

Most ertinent#1 or our uroses, under Arti2#e 4!% o t+e Co""er2ia#

A$ree"ent, 3uait Aira1s o0#i$ated itse# to s+are it+ P+i#iine Air#ines revenue earnedro" t+e u#it o assen$ers 0eteen 3uait and Mani#aand vi2e versa! .%%/ T+e su22eedin$

ara$ra+s o Arti2#e 4 stiu#ated t+e 0asis or t+e s+ared revenue earned ro" t+e u#it o

assen$ers!

T+e Co""er2ia# A$ree"ent and t+e anne=ed >oint Servi2es A$ree"ent as su0seuent#1

a"ended 01 t+e arties si= ti"es 0eteen %)% and %

hoc oint servi2es, on t+e Mani#a-3uait 6and vi2e versa7 route or t+e eriod 0eteen Ari# to>une %))!.%4/ In %), anot+er a"end"ent as a$reed to 01 t+e arties, su0e2tin$ t+e u#it o

2ar$o 0eteen 3uait and Mani#a to t+e sa"e revenue s+arin$ arran$e"ent as t+e u#it o

assen$ers!.%;/ ?ro" %)% unti# +en t+e resent in2idents arose in %&, t+ere see"s to +ave

0een no serious disa$ree"ents re#atin$ to t+e 2ontra2t!

In Ari# o %&, de#e$ations ro" t+e P+i#iines and 3uait 6P+i#iine Pane# and 3uait

Pane#7 "et in 3uait! T+e ta#5s 2u#"inated in a Conidentia# Me"orandu" o 8nderstandin$

http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn10http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn11http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn12http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn13http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn14http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn15http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn10http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn11http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn12http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn13http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn14http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn15


4/31


6CM87 entered into in 3uait on %4 Ari# %&! A"on$ t+e "e"0ers o t+e P+i#iine Pane#

ere oi2ia#s o t+e Civi# Aeronauti2s Board 6CAB7, t+e Deart"ent o ?orei$n Aairs 6D?A7

and our oi2ia#s o P+i#iine Air#ines: na"e#1 its Vi2e-President or Mar5etin$, Dire2tor or

Internationa# Re#ations, Le$a# Counse#, and a Senior Internationa# Re#ations Se2ia#ist! Dr!

Vi2tor S! Lin#in$an, t+e ead o t+e De#e$ation and E=e2utive Dire2tor o t+e CAB, si$ned t+eCM8 in 0e+a# o t+e Govern"ent o t+e Reu0#i2 o t+e P+i#iines!

T+e resent 2ontrovers1 ste"s ro" t+e ourt+ ara$ra+ o t+e CM8, +i2+ read:

T+e aeronauti2a# aut+orities o t+e to Contra2tin$ Parties i## 0#ess and en2oura$e an12ooeration 0eteen t+e to desi$nated air#ines! T+e desi$nated air#ines s+a## enter into 2o""er2ia# arran$e"ents or t+e uni#atera# e=er2ise o it+ reedo" trai2 ri$+ts! Su2+ arran$e"ents i## 0e su0e2t to t+e arova# o t+e aeronauti2a#aut+orities o 0ot+ 2ontra2tin$ arties!.%


5/31


Pursuant to t+is 2#ause, P+i#iine Air#ines a25no#ed$ed t+e %& Ma1 %& #etter as t+e reuisite

noti2e o ter"ination! oever, it a#so ointed out t+at t+e a$ree"ent 2ou#d on#1 0e ee2tive#1

ter"inated on ;% O2to0er %&, or t+e #ast da1 o t+e t+en 2urrent trai2 eriod! T+us

P+i#iine Air#ines insisted t+at t+e rovisions o t+e Co""er2ia# A$ree"ent s+a## 2ontinue to

0e enor2ed unti# su2+ date!.%/

Su0seuent#1, P+i#iine Air#ines insisted t+at 3uait Aira1s a1 it t+e rin2ia# su" o

8S9%,(4,'(!(( as revenue or t+e u#it o assen$ers and 2ar$o or t+e eriod %; Ari

%& unti# 4) O2to0er %&!.4(/ H+en 3uait Aira1s reused to a1, P+i#iine Air#ines i#ed a

Co"#aint.4%/ a$ainst t+e orei$n air#ine it+ t+e Re$iona# Tria# Court 6RTC7 o Ma5ati Cit1

see5in$ t+e a1"ent o t+e aore"entioned su" it+ interest, attorne1s ees, and 2osts o suit

In its Anser,.44/ 3uait Aira1s invo5ed t+e CM8 and ar$ued t+at its o0#i$ations under t+e

Co""er2ia# A$ree"ent ere ter"inated as o t+e ee2tivit1 date o t+e CM8, or on %4 Ari#%&! P+i#iine Air#ines 2ountered in its Re#1 t+at it as not riv1 to t+e .CM8/, .4;/ t+ou$+ i

ou#d eventua##1 2on2ede t+e e=isten2e o t+e CM8!.4


6/31


Pane# 2onsistin$ o reresentative . sic/ o CAB, D?A, et2! does not ne2essari#1 $ive rise to t+e

2on2#usion t+at t+e .CM8/ is a suerior 2ontra2t.,/ or t+e e=er2ise o t+e States soverei$n

oer 2annot 0e ar0itrari#1 and indis2ri"inate#1 uti#ied se2ii2a##1 to i"air 2ontra2tua

vested ri$+ts!.4&/

Instead, t+e RTC +e#d t+at .t/+e Co""er2ia# A$ree"ent and its se2ii2 rovisions on

revenue s+arin$ +avin$ 0een ree#1 and vo#untari#1 a$reed uon 01 t+e ae2ted arties = = = +as

t+e or2e o #a 0eteen t+e arties and t+e1 are 0ound to t+e u#i##"ent o +at +as 0een

e=ress#1 stiu#ated t+erein!.4'/ A22ordin$#1, t+e rovision o t+e .CM8/ "ust 0e a#ied in su2+

a "anner t+at it does not i"air t+e vested ri$+ts o t+e arties!

?ro" t+is De2ision, 3uait Aira1s dire2t#1 i#ed it+ t+is Court t+e resent Petition or

Revie, raisin$ ure uestions o #a! 3uait Aira1s oses t+ree uestions o #a o

reso#ution: +et+er t+e desi$nated air 2arrier o t+e Reu0#i2 o t+e P+i#iines 2an +ave 0etterri$+ts t+an t+e $overn"ent itse#@ +et+er t+e 0i#atera# a$ree"ent 0eteen t+e Reu0#i2 o t+e

P+i#iines and t+e State o 3uait is suerior to t+e Co""er2ia# A$ree"ent@ and +et+er t+e

enor2e"ent o t+e CM8 vio#ates t+e non-i"air"ent 2#ause o t+e Constitution!

Let us revie t+e a2tua# 0a25dro to are2iate t+e under#1in$ 2onte=t 0e+ind t+e

Co""er2ia# A$ree"ent and t+e CM8! T+e Co""er2ia# A$ree"ent as entered into in %)% at

a ti"e +en P+i#iine Air#ines +ad not rovided a route to 3uait +i#e 3uait Aira1s +ad a

route to Mani#a! T+e Co""er2ia# A$ree"ent esta0#is+ed a oint 2o""er2ia# arran$e"en+ere01 P+i#iine Air#ines and 3uait Aira1s ere to oint#1 oerate t+e Mani#a-3uait

6and vi2e versa7 route, uti#iin$ t+e #anes and servi2es o 3uait Aira1s! Based on t+e

rea"0u#ar ara$ra+s o t+e >oint Servi2es A$ree"ent, as o %)%, 3uait Aira1s a

interested in esta0#is+in$ a se2ond reuen21 6or an in2rease o its Mani#a #i$+ts to to7 and

t+at as a resu#t o 2ordia# and ran5 dis2ussions t+e 2on2et o a oint servi2e e"er$ed as t+e

"ost desira0#e a#ternative otion!.4*/

As a resu#t, t+e revenue-s+arin$ a$ree"ent as rea2+ed 0eteen t+e to air#ines, an

a$ree"ent +i2+ stood as an a#ternative to 0ot+ 2arriers oerin$ 2o"etin$ #i$+ts servi2in$ t+eMani#a-3uait route! An aarent 2on2ession t+ou$+ 01 P+i#iine Air#ines as t+e re2#usion

o t+e e=er2ise o one o t+e unda"enta# air trai2 ri$+ts, t+e ?it+ ?reedo" trai2 ri$+ts it+

rese2t to t+e Mani#a-Ban$5o5-3uait, t+ere01 re2#udin$ t+e de#anin$ o assen$ers

ro" Mani#a in Ban$5o5 and t+e 0oardin$ in Ban$5o5 o assen$ers 0ound or Mani#a!

T+e CM8 ee2tive#1 sou$+t to end t+e %)% a$ree"ent 0eteen P+i#iine Air#ines and

3uait Aira1s, 01 re2#udin$ an1 2o""er2ia# arran$e"ents in t+e e=er2ise o t+e T+ird and

http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn27http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn28http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn29http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn27http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn28http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn29


7/31


?ourt+ reedo" trai2 ri$+ts! As a resu#t, 0ot+ 3uait and t+e P+i#iines +ad t+e rese2tive

ri$+t to 0oard assen$ers ro" t+eir rese2tive 2ountries and de#ane t+e" in t+e ot+er 2ountr1

it+out +avin$ to s+are an1 revenue or enter into an1 2o""er2ia# arran$e"ents to e=er2ise su2+

ri$+ts! In e=2+an$e, t+e desi$nated air#ine or air#ines o ea2+ 2ountr1 as entit#ed to oerate si=

reuen2ies er ee5 in ea2+ dire2tion! In addition, t+e desi$nated air#ines ere a##oed to enteinto 2o""er2ia# arran$e"ents or t+e uni#atera# e=er2ise o t+e ?it+ ?reedo" trai2 ri$+ts!

Anot+er nota0#e oint, one not tou2+ed uon 01 t+e arties or t+e tria# 2ourt! It is e#

5non t+at at t+e ti"e o t+e e=e2ution o t+e %)% a$ree"ents, P+i#iine Air#ines as

2ontro##ed 01 t+e P+i#iine $overn"ent, it+ t+e Govern"ent Servi2e Insuran2e S1ste"

6GSIS7 +o#din$ t+e "aorit1 o s+ares! oever, in %4, P+i#iine Air#ines as rivatied

it+ a rivate 2onsortiu" a2uirin$ '* o t+e s+ares o t+e 2arrier! .4)/ T+us, at t+e ti"e o t+e

si$nin$ o t+e CM8, P+i#iine Air#ines as a rivate 2ororation no #on$er 2ontro##ed 01 t+e

Govern"ent! T+is a2t is si$nii2ant! ad P+i#iine Air#ines re"ained a $overn"ent oned or2ontro##ed 2ororation at t+e ti"e t+e CM8 as e=e2uted in %&, its status as su2+ ou#d +ave

0ound P+i#iine Air#ines to t+e 2o""it"ents "ade in t+e do2u"ent 01 no #ess t+an t+e

P+i#iine $overn"ent! oever, sin2e P+i#iine Air#ines +ad a#read1 0e2o"e a rivate

2ororation at t+at un2ture, t+e uestion o i"air"ent o rivate ri$+ts "a1 2o"e into

2onsideration!

In t+is re$ard, e o0serve t+at t+e RTC aears to +ave 0een under t+e i"ression t+at

t+e CM8 as 0rou$+t a0out 01 "a2+inations o t+e P+i#iine Pane# and t+e 3uait Pane# o+i2+ P+i#iine Air#ines as not aare or in +i2+ it +ad a art! T+is i"ression is not e=a2t#1

0orne 01 t+e re2ord sin2e no #ess t+an our o t+e nine "e"0ers o t+e P+i#iine Pane# ere

oi2ia#s o P+i#iine Air#ines! It s+ou#d 0e noted t+ou$+ t+at one o t+ese oi2ia#s, Senior

Internationa# Re#ations Se2ia#ist Arne# Vi0ar, testiied or P+i#iine Air#ines t+at t+e air#ine

voi2ed its oosition to t+e it+draa# o t+e 2o""er2ia# a$ree"ents under t+e CM8 even

"ont+s 0eore t+e si$nin$ o t+e CM8, 0ut t+e o0e2tions ere overru#ed!

No, t+e ar$u"ents raised in t+e etition!

One #ine o ar$u"ent raised 01 3uait Aira1s 2an 0e dis"issed outri$+t! 3uai

Aira1s oints out t+at t+e t+ird H+ereas 2#ause o t+e %)% Co""er2ia# A$ree"ent stated

NOH, it is +ere01 a$reed, su0e2t to and it+out reudi2e to an1 e=istin$ or uture a$ree"ents

0eteen t+e Govern"ent Aut+orities o t+e Contra2tin$ Parties +ereto T+at 2#ause, it is ar$ued

evin2es a25no#ed$e"ent t+at ro" t+e 0e$innin$ P+i#iine Air#ines +ad 5non u##1 e## t+a

its ri$+ts under t+e Co""er2ia# A$ree"ent ou#d 0e #i"ited 01 +atever a$ree"ents t+e

P+i#iine and 3uait $overn"ents "a1 enter into #ater!

http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn30http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn30


8/31


But 2an a era"0u#ator1 2#ause, +i2+ is +at t+e adverted H+ereas 2#ause is, i"ose a

0indin$ o0#i$ation or #i"itation on t+e 2ontra2tin$ artiesJ In t+e 2ase o statutes, +i#e a

rea"0#e "aniests t+e reasons or t+e assa$e o t+e statute and aids in t+e interretation o an1

a"0i$uities it+in t+e statute to +i2+ it is rei=ed, it nonet+e#ess is not an essentia# art o ana2t, and it neit+er en#ar$es nor 2oners oers!.4/ P+i#iine Air#ines su0"its t+at t+e sa"e

+o#ds true as to t+e rea"0u#ar +ereas 2#auses o a 2ontra2t!

H+at as t+e intention o t+e arties in or$in$ t+e H+ereas 2#ause and t+e 2onte=ts t+e

arties understood it in %)%J In order to ud$e t+e intention o t+e 2ontra2tin$ arties, t+eir

2onte"oraneous and su0seuent a2ts s+a## 0e rin2ia##1 2onsidered, .;(/ and in doin$ so, t+e

2ourts "a1 2onsider t+e re#ations e=istin$ 0eteen t+e arties and t+e urose o t+e 2ontra2t.;%/ In %)%, P+i#iine Air#ines as sti## oned 01 t+e P+i#iine $overn"ent! In t+at 2onte=t, it

is evident t+at t+e P+i#iine $overn"ent, as oner P+i#iine Air#ines, 2ou#d enter intoa$ree"ents it+ t+e 3uait $overn"ent t+at ou#d suersede t+e Co""er2ia# A$ree"en

entered into 01 one o its GOCCs, a s2enario t+at 2+an$ed on2e P+i#iine Air#ines e## to

rivate oners+i! P+i#iine Air#ines ar$ues 0eore us t+at t+e 2ited rea"0u#ar stiu#ation is in

a2t suer#uous, and e 2an a$ree in t+e sense t+at as o t+e ti"e o t+e e=e2ution o t+e

Co""er2ia# A$ree"ent, it as evident, it+out need o stiu#ation, t+at t+e P+i#iine

$overn"ent 2ou#d enter into an a$ree"ent it+ t+e 3uait $overn"ent t+at ou#d reudi2e t+e

ter"s o t+e 2o""er2ia# arran$e"ents 0eteen t+e to air#ines! Ater a##, P+i#iine Air#ines

t+en ou#d not +ave 0een in a osition to 2+a##en$e t+e is+es o its t+en "aorit1 sto25+o#dert+e P+i#iine $overn"ent!

Ket 01 t+e ti"e oners+i o P+i#iine Air#ines as transerred into rivate +ands, t+e

2ontroverted H+ereas 2#ause +ad ta5en on a dierent 2o"#e=ion, or it as ne#1 evident t+a

an a2t o t+e P+i#iine $overn"ent ne$atin$ t+e 2o""er2ia# arran$e"ent 0eteen t+e to

air#ines ou#d inrin$e t+e vested ri$+ts o a rivate individua#! T+e ori$ina# intention o t+e

H+ereas 2#ause as to re#e2t +at as t+en a $iven a2t re#ative to t+e nationa#ied status o

P+i#iine Air#ines! Hit+ t+e 2+an$e o oners+i o P+i#iine Air#ines, t+e H+ereas 2#ause

+ad 2eased to 0e re#e2tive o t+e 2urrent situation as it no stands as a see"in$ invitation to t+eP+i#iine $overn"ent to erode rivate vested ri$+ts! He ou#d +ave no ro0#e" a22ordin$ t+e

interretation reerred 01 3uait Aira1s o t+e H+ereas 2#ause +ad it 0een sti## re#e2tive o

t+e ori$ina# intent to aive vested ri$+ts o rivate ersons, rat+er t+an t+e ri$+ts in avor o t+e

$overn"ent 01 a GOCC! T+at is not t+e 2ase, and e are not in2#ined to $ive ee2t to t+e

H+ereas 2#ause in a "anner t+at does not re#e2t t+e ori$ina# intention o t+e 2ontra2tin$ arties!

http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn31http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn32http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn33http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn31http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn32http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn33


9/31


T+us#1, t+e roer o2us o our de#i0eration s+ou#d 0e +et+er t+e e=e2ution o t+e CM8

0eteen t+e P+i#iine and 3uait $overn"ents 2ou#d +ave auto"ati2a##1 ter"inated t+e

Co""er2ia# A$ree"ent, as e## as t+e >oint Servi2es A$ree"ent 0eteen P+i#iine Air#ines

and 3uait Aira1s!

P+i#iine Air#ines is t+e $rantee o a #e$is#ative ran2+ise aut+oriin$ it to rovide

do"esti2 and internationa# air servi2es!.;4/ Its initia# ran2+ise as $ranted in %;& t+rou$+ A2t

No!


10/31


t+is 2o"es at t+e e=ense o di#o"ati2 e"0arrass"ent! H+i#e it "a1 +ave 0een, rior to t+e

rivatiation o P+i#iine Air#ines, t+at t+e P+i#iine Govern"ent +ad t+e aut+orit1 to 0ind t+e

air#ine in its 2aa2it1 as oner o t+e air#ine, under t+e ost-rivatiation era, +oever

+atever aut+orit1 o t+e P+i#iine Govern"ent to 0ind P+i#iine Air#ines 2an on#1 2o"e in

its 2aa2it1 as re$u#ator!

As it+ a## re$u#ator1 su0e2ts o t+e $overn"ent, inrin$e"ent o roert1 ri$+ts 2an

on#1 avai# it+ due ro2ess o #a! Le$is#ative re$u#ation o u0#i2 uti#ities "ust not +ave t+e

ee2t o derivin$ an oner o +is roert1 it+out due ro2ess o #a, nor o 2onis2atin$ or

aroriatin$ rivate roert1 it+out due ro2ess o #a, nor o 2onis2atin$ or aroriatin$

rivate roert1 it+out ust 2o"ensation, nor o #i"itin$ or res2ri0in$ irrevo2a0#1 vested

ri$+ts or rivi#e$es #au##1 a2uired under a 2+arter or ran2+ise! T+e oer to re$u#ate is

su0e2t to t+ese 2onstitutiona# #i"its!.;


11/31


a0i#it1 o t+at "e"0er o t+e CAB to reresent t+e P+i#iine $overn"ent in si$nin$ t+e CM8,

e do uestion +et+er su2+ "e"0er 2ou#d +ave 0ound P+i#iine Air#ines in a "anner t+at

2an 0e a22orded #e$a# re2o$nition 01 our 2ourts!

I"a$ine i t+e President o t+e P+i#iines, or one o +is a#ter e$os, a22eded to t+ede"ands o a orei$n 2ounterart and a$reed to s+ut don a arti2u#ar ?i#iino 0usiness or

enterrise, $oin$ as ar as to 2o-si$n a do2u"ent averrin$ t+at t+e 0usiness i## 0e s+ut don

i""ediate#1! Grantin$ t+at t+ere is 0asis in P+i#iine #a or t+e 2#osure o su2+ 0usiness,

2ou#d t+e "ere de2#aration o t+e President +ave t+e #e$a# ee2t o i""ediate#1 renderin$

0usiness oerations i##e$a#J He, as "a$istrates in a un2tionin$ de"o2rati2 State it+ a u##1

#es+ed Bi## o Ri$+ts and a Constitution t+at e"+ati2a##1 ree2ts letat cest moi as t+e

$overnin$ +i#oso+1, t+in5 not! T+ere is not+in$ to revent t+e P+i#iine $overn"ent ro"

uti#iin$ a## t+e roer 2+anne#s under #a to enor2e su2+ 2#osure, 0ut un#ess and unti# due

ro2ess is o0served, it does not +ave #e$a# ee2t in t+is urisdi2tion! Even $rantin$ t+at t+ea$ree"ent 0eteen t+e to $overn"ents or t+eir reresentatives 2reates a 0indin$ o0#i$ation

under internationa# #a, it re"ains in2u"0ent or ea2+ 2ontra2tin$ art1 to ad+ere to its on

interna# #a in t+e ro2ess o 2o"#1in$ it+ its o0#i$ations!

T+e ro"ises "ade 01 a P+i#iine resident or +is a#ter e$os to a orei$n "onar2+ are

not transu0stantiated 01 divine ri$+t so as to ipso facto render #e$a# ri$+ts o rivate ersons

o0viated! ad P+i#iine Air#ines re"ained a $overn"ent-oned or 2ontro##ed 2ororation, it

ou#d +ave 0een 0ound, as art o t+e e=e2utive 0ran2+, to 2o"#1 it+ t+e di2tates o t+ePresident or +is a#ter e$os sin2e t+e President +as e=e2utive 2ontro# and suervision over t+e

2o"onents o t+e e=e2utive 0ran2+! Ket P+i#iine Air#ines +as 0e2o"e, 01 t+is ti"e, a rivate

2ororation one t+at "a1 +ave #a0ored under t+e 2onditions o its #e$is#ative ran2+ise t+at

a##oed it to 2ondu2t air servi2es, 0ut rivate in 2+ara2ter nonet+e#ess! T+e President or

+is alter egos do not +ave t+e #e$a# 2aa2it1 to di2tate insuera0#e 2o""ands to rivate ersons

And t+at undesira0#e trait ou#d 0e reuted on t+e President +ad etitioners osition revai#ed,

sin2e it is i"0ued it+ t+e resu"tion t+at t+e 2o""it"ent "ade to a orei$n $overn"ent

0e2o"es oerative it+out 2o"#1in$ it+ t+e interna# ro2esses or t+e divestiture o rivate

ri$+ts!

erein, e do not see +1 t+e P+i#iine $overn"ent 2ou#d not +ave o0served due

ro2ess o #a, s+ou#d it +ave desired to see t+e Co""er2ia# A$ree"ent i""ediate#1

ter"inated in order to ad+ere to its aarent 2o""it"ent to t+e 3uait $overn"ent! T+e CAB,

it+ its a"#e re$u#ator1 oer over t+e e2ono"i2 aairs o #o2a# air#iners, 2ou#d +ave 0een

2a##ed uon to e=er2ise its urisdi2tion to "a5e it so! A re"ed1 even e=ists in 2ivi# #at+e

udi2ia# annu#"ent or reor"ation o 2ontra2ts+i2+ 2ou#d +ave 0een avai#ed o to ee2t t+e


12/31


i""ediate ter"ination o t+e Co""er2ia# A$ree"ent! No su2+ re"ed1 as atte"ted 01 t+e

$overn"ent!

Nor 2an e resu"e, si"#1 0e2ause Dr! Lin#in$an, E=e2utive Dire2tor o t+e CAB +ad

si$ned t+e CM8 in 0e+a# o t+e P+i#iine Pane#, t+at +e 2ou#d +ave done so 0earin$ t+eaut+orit1 o t+e Board, in t+e e=er2ise o re$u#ator1 urisdi2tion over P+i#iine Air#ines! ?or

one, t+e CAB is a 2o##e$ia# 0od1 2o"osed o ive "e"0ers, .;&/ and no one "e"0ereven t+e

2+air"an2an a2t in 0e+a# o t+e entire Board! T+e Board is disa0#ed ro" eror"in$ as su2+

it+out a uoru"! ?or anot+er, t+e E=e2utive Dire2tor o t+e CAB is not even a "e"0er o t+e

Board, er R!A! No! **', as a"ended!

Even $rantin$ t+at t+e o#i2e oer o t+e State, as $iven #es+ in t+e various #as

$overnin$ t+e re$u#ation o t+e air#ine industr1 in t+e P+i#iines, "a1 0e e=er2ised to i"air

t+e vested ri$+ts o rivate#1-oned air#ines, t+e derivation o roert1 sti## reuires due ro2ess o #a! In order to va#idate etitioners osition, e i## +ave to 2on2ede t+at t+e ri$+t to

due ro2ess "a1 0e e=tin$uis+ed 01 e=e2utive 2o""and! H+i#e e s1"at+ie it+ etitioner

+o reasona0#1 2ou#d re#1 on t+e 2o""it"ent "ade to it 01 t+e P+i#iine $overn"ent, e sti##

+ave to rese2t t+e se$re$ate identit1 o t+e $overn"ent and t+at o a rivate 2ororation and

$ive due "eanin$ to t+at se$re$ation, vita# as it is to t+e ver1 notion o de"o2ra21!

WHERE'ORE, t+e etition is (ENIE(! No ronoun2e"ent as to 2osts!

SO OR(ERE(!

http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn37http://sc.judiciary.gov.ph/jurisprudence/2009/may2009/156087.htm#_ftn37


13/31


G.R. No. 109404 January 22, 1996

FLORENCIO EUGENIO, doing business under !e na"e E # $ %e&a 'i&&age, (eiioner,)s.

EXECUTIVE SECRETARY FR*N+LIN . DRILON, -O$ING *N% L*N% $E REGL*/ORO*R% -LR3 *N% RO$ERO *LI*NO, res(ondens.

R E S O L U T I O N

PANGANIBAN, J .:

%id !e 5ai&ure o de)e&o( a subdi)ision onsiue &ega& 7usi5iaion 5or !e non8(ay"en o5

a"oriaions by a buyer on insa&&"en under &and (ur!ase agree"ens enered ino prior to !eena"en o5 .%. 9:;,


14/31


%e&a 'i&&age is !ereby ordered o i""ediae&y re5und o !e o"(&ainan8a((e&&an !erein (ri)aeres(onden3 a&& (ay"ens "ade !ereon, (&us ineress o"(ued a &ega& raes 5ro" dae o5 reei(!ereo5 uni& 5u&&y (aid.<

/!e res(onden EAeui)e $ereary, on a((ea&, a55ir"ed !e deision o5 !e -$RC and denied !esubse?uen oion 5or Reonsideraion 5or &a@ o5 "eri and 5or !a)ing been 5i&ed ou o5 i"e.

eiioner !as no 5i&ed !is eiion 5or re)ie be5ore !e $u(re"e Cour.

nder Re)ised *d"inisrai)e Ciru&ar No. 189:,


15/31


-ERE*$, numerous reports reveal that many real estate subdivision owners, developers,operators, and/or sellers have reneged on their representations and obligations to provide andmaintain properly subdivision roads, drainage, sewerage, water systems, lighting systems, andother similar basic requirements, thus endangering the health and safety of home and lotbuyers

-ERE*$, reports of alarming magnitude also show cases of swindling and fraudulentmanipulations perpetrated by unscrupulous subdivision and condominium sellers andoperators, such as failure to deliver titles to the buyers or titles free from liens andencumbrances, and to pay real estate taxes, and fraudulent sales of the same subdivision lotsto different innocent purchasers for value2 e"(!asis su((&ied.3

Fro" a dediaed reading o5 !e (rea"b&e, i is "ani5es and unarguab&e !a !e &egis&ai)e inen"us !a)e been o re"edy !e a&ar"ing siuaion by !a)ing .%. 9:; o(erae reros(ei)e&y e)enu(on onras a&ready in eAisene a !e i"e o5 is ena"en. Indeed, a sri&y (ros(ei)ea((&iaion o5 !e saue i&& e55ei)e&y e"asu&ae i, 5or !en !e $ae i&& no be ab&e o eAerise isregu&aory 5unions and urb 5raudu&en s!e"es and (raies (er(eraed under or in onneion

i! !ose onras and ransaions !i! !a((en o !a)e been enered ino (rior o .%. 9:;,des(ie ob)ious (re7udie o !e )ery subdi)ision &o buyers soug! o be (roeed by said &a. I is!ard&y onei)ab&e !a !e &egis&ai)e au!oriy inended o (er"i su! a &oo(!o&e o re"ain andoninue o be a soure o5 "isery 5or subdi)ision &o buyers e&& ino !e 5uure.

*dding 5ore o !e argu"ens 5or !e reroai)iy o5 .%. 9:; as a !o&e are erain o5 is(ro)isions, viz ., $eions 20, 21 and 2B !ereo5, !i! by !eir )ery er"s !a)e reroai)e e55e andi&& i"(a u(on e)en !ose onras and ransaions enered ino (rior o .%. 9:;=s ena"enH

$e. 20. Time of Completion. Every owner or developer s!a&& onsru and (ro)ide !e5ai&iies, i"(ro)e"ens, in5rasruures and o!er 5or"s o5 de)e&o("en, in&uding aer

su((&y and &ig!ing 5ai&iies, !i! are o55ered and indiaed in !e a((ro)ed subdi)ision orondo"iniu" (&ans, bro!ures, (ros(eus, (rined "aers, &eers or in any 5or" o5ad)erise"en, i!in one year 5ro" !e dae o5 !e issuane o5 !e &iense 5or !e subdi)isionor ondo"iniu" (ro7e or su! o!er (eriod o5 i"e as "ay be 5iAed by !e *u!oriy.

$e. 21. ales !rior to "ecree. #n cases of subdivision lots or condominium units sold ordisposed of prior to the effectivity of this "ecree, it shall be incumbent upon the owner ordeveloper of the subdivision or condominium pro$ect to complete compliance with his or itsobligations as provided in the preceding section within two years from the date of this"ecree un&ess o!erise eAended by !e *u!oriy or un&ess an ade?uae (er5or"ane bondis 5i&ed in aordane i! $eion 6 !ereo5.

Fai&ure o5 !e oner or, de)e&o(er o o"(&y i! !e ob&igaions under !is and !e (reeding(ro)isions s!a&& onsiue a )io&aion (unis!ab&e under $eion BD and B9 o5 !is %eree.

$e. 2B. %on&'orfeiture of !ayments. No insa&&"en (ay"en "ade by a buyer in asubdi)ision or ondo"iniu" (ro7e 5or !e &o or uni !e onraed o buy s!a&& be 5or5eied in5a)or o5 !e oner or de)e&o(er, !en !e buyer, a5er due noie o !e oner or de)e&o(er,desiss 5ro" 5ur!er (ay"en due o !e 5ai&ure o5 !e oner or de)e&o(er o de)e&o( !esubdi)ision or ondo"iniu" (ro7e aording o !e a((ro)ed (&ans and i!in !e i"e &i"i5or o"(&ying i! !e sa"e. $u! buyer "ay, a !is o(ion, be rei"bursed !e oa& a"oun

http://www.lawphil.net/judjuris/juri1996/jan1996/gr_109404_1996.html#fnt2http://www.lawphil.net/judjuris/juri1996/jan1996/gr_109404_1996.html#fnt2


16/31


(aid in&uding a"oriaion ineress bu eA&uding de&in?ueny ineress, i! ineres !ereona !e &ega& rae. e"(!asis su((&ied3

On !e o!er !and, as argued by !e res(onden EAeui)e $ereary, !e a((&iaion o5 .%. 9:; o!e onras in ?uesion i&& be onsisen i! (aragra(! 4 o5 !e onras !e"se&)es, !i!eA(ress&y (ro)idesH

43 /!e (ary o5 !e Firs ar !ereby binds !i"se&5 o subdi)ide, de)e&o( and i"(ro)e !eenire area o)ered by /rans5er Ceri5iae o5 /i&e No. 16D119 o5 !i! !e (are&s o5 &andssub7e o5 !is onra is a (ar in aordane i! !e (ro)isions o5 ueon Ciy OrdinaneNo. 6:61, $866 and !e ary o5 !e Firs ar 5ur!er binds !i"se&5 o o"(&y i! and abide bya&& &as, ru&es and regu&aions res(eing !e subdi)ision and de)e&o("en o5 &os 5orresidenia& (ur(oses as may be presently in force or may hereafter be required by laws passed by the Congress of the !hilippines or required by regulations of the (ureau of )ands, the*eneral +egistration ffice and other government agencies. e"(!asis su((&ied3

oreo)er, as .%. 9:; is undeniab&y a((&iab&e o !e onras in ?uesion, i 5o&&os !a $eion 2B

!ereo5 !ad been (ro(er&y in)o@ed by (ri)ae res(onden !en !e desised 5ro" "a@ing 5ur!er(ay"en o (eiioner due o (eiioner=s 5ai&ure o de)e&o( !e subdi)ision (ro7e aording o !ea((ro)ed (&ans and i!in !e i"e &i"i 5or o"(&ying i! !e sa"e. $u! ino"(&ee de)e&o("eno5 !e subdi)ision and non8(er5or"ane o5 s(ei5i onraua& and sauory ob&igaions on !e (ar o5 !e subdi)ision8oner !ad been esab&is!ed in !e 5indings o5 !e -LR !i! in urn ereon5ir"ed by !e res(onden EAeui)e $ereary in !is assai&ed %eision.3 Fur!er"ore, res(ondenEAeui)e $ereary a&so ga)e due eig! o !e 5o&&oing "aersH a&!oug! (ri)ae res(ondensared o de5au& on a"oriaion (ay"ens beginning ay 19;:, so !a by !e end o5 Ju&y 19;: !e!ad a&ready inurred !ree onseui)e arrearages in (ay"ens, ne)er!e&ess, !e (eiioner, !o !ad!e ane&&aion o(ion a)ai&ab&e o !i" under !e onra, did no eAerise or ui&ie !e sa"e ini"e&y 5as!ion bu de&ayed uni& ay 19;9 !en !e 5ina&&y "ade u( !is "ind o ane& !e onras.

u by !a i"e !e &and (ur!ase agree"ens !ad a&ready been o)era@en by !e (ro)isions o5 .%.9:;, (ro"u&gaed on Ju&y 12, 19;6. In any e)en, as (oined ou by res(onden -LR andseonded by !e $o&iior Genera&, !e de5au&s in a"oriaion (ay"ens inurred by (ri)aeres(onden !ad been e55ei)e&y ondoned by !e (eiioner, by reason o5 !e &aer=s o&erane o5 !ede5au&s 5or a &ong (eriod o5 i"e.3

Li@eise, !ere is no "eri in (eiioner=s onenion !a res(onden $ereary eAeeded !is 7urisdiion in ordering !e re5und o5 (ri)ae res(onden=s (ay"ens on Lo 12 a&!oug! aording o(eiioner3 on&y Lo 1B as !e sub7e o5 !e o"(&ain. Res(onden $ereary du&y noed !a !esu((oring dou"ens sub"ied subsaniaing !e &ai" o5 non8de)e&o("en 7usi5ied su! orderinas"u! as su! &ai" as a&so !e basis 5or non8(ay"en o5 a"oriaions on said Lo 12.

Fina&&y, sine (eiioner=s "oion 5or reonsideraion o5 !e EAeui)e $ereary=s3 %eision daedar! 10, 1992 as 5i&ed on&y on !e 21s day 5ro" reei( !ereo5, said deision !ad beo"e 5ina&and eAeuory, (ursuan o $eion ; o5 *d"inisrai)e Order No. 1D daed February 12, 19D;, !i!(ro)ides !a


17/31


$O OR%ERE%.

EN BANC

Petitio!er)Org#!i*#tio!s, !#e%y+ .R. Nos. -/012)1/

PKSMMN (Pambansang Koalisyon ng Mga Samahang Magsasaka at Manggagawa sa Niyugan

VS

!E3ECUTI4E SECRETARY,SECRETARK O? AGRIC8LT8RE, SECRETARK O? AGRARIAN RE?ORM, PRESIDENTIAL COMMISSION ONGOOD GOVERNMENT, TE SOLICITOR GENERAL, PILIPPINE COCON8T PROD8CERS ?EDERATION, INC!6COCO?ED7, and 8NITED COCON8T PLANTERS BAN3 68CPB7,Resondents!= ------------------------------------------------------ =

=

DECISION

A5A(, J !:

T+ese are 2onso#idated etitions to de2#are un2onstitutiona# 2ertain residentia# de2rees and

e=e2utive orders o t+e "artia# #a era re#atin$ to t+e raisin$ and use o 2o2o-#ev1 unds!

The '#$ts #!& the C#se

On >une %, %*% Con$ress ena2ted Reu0#i2 A2t 6R!A!7 '4'(.%/ t+at esta0#is+ed a Co2onut

Invest"ent ?und 6CI ?und7 or t+e deve#o"ent o t+e 2o2onut industr1 t+rou$+ 2aita#

inan2in$!.4/ Co2onut ar"ers ere to 2aita#ie and ad"inister t+e ?und t+rou$+ t+e Co2onut

Invest"ent Co"an1 6CIC7.;/ +ose o0e2tive as, a"on$ ot+ers, to advan2e t+e 2o2onut

ar"ers interests! ?or t+is urose, t+e #a i"osed a #ev1 o P(!&& on t+e 2o2onut ar"ers irst

do"esti2 sa#e o ever1 %(( 5i#o$ra"s o 2ora, or its euiva#ent, or +i2+ #ev1 +e as to $et a

re2eit 2onverti0#e into CIC s+ares o sto25!.


18/31


A0out a 1ear o##oin$ +is ro2#a"ation o "artia# #a in t+e 2ountr1 or on Au$ust 4(, %*;

President ?erdinand E! Mar2os issued Presidentia# De2ree 6P!D!7 4*',.&/ +i2+ esta0#is+ed a

Co2onut Consu"ers Sta0i#iation ?und 6CCS ?und7, to address t+e 2risis at t+at ti"e in t+e

do"esti2 "ar5et or 2o2onut-0ased 2onsu"er $oods! T+e CCS ?und as to 0e 0ui#t u t+rou$+

t+e i"osition o a P%&!((-#ev1 or ever1 irst sa#e o %(( 5i#o$ra"s o 2ora resecada!

.'/

T+e#ev1 as to 2ease ater a 1ear or ear#ier rovided t+e 2risis as over! An1 re"ainin$ 0a#an2e o

t+e ?und as to revert to t+e CI ?und esta0#is+ed under R!A! '4'(!.*/

A 1ear #ater or on Nove"0er %u#1 %*&, resu#tin$ in a 2+an$e in

t+e 0an5s na"e ro" ?irst 8nited Ban5 to 8nited Co2onut P#anters Ban5 68CPB7!.%&/

On >u#1 %


19/31


In %)(, President Mar2os issued P!D! %',.4%/ susendin$ t+e 2o##e2tions o t+e CCS ?und and

t+e CID ?und! But in %)% +e issued P!D! %)


20/31


The Issues Prese!te&

T+e arties su0"it t+e o##oin$ issues or adudi2ation: Pro2edura##1

%! H+et+er or not etitioners se2ia# 2ivi# a2tions o certiorari under Ru#e '& 2onstituted

t+e roer re"ed1 or t+eir a2tions@ and4! H+et+er or not etitioners +ave #e$a# standin$ to 0rin$ t+e sa"e to 2ourt!

On t+e su0stan2e

;! H+et+er or not t+e 2o2o-#ev1 unds are u0#i2 unds@ and

The Ru%i!gs o" the Court

'irst. 8CPB uestions t+e roriet1 o t+e resent etitions

or certiorari and mandamus under Ru#e '& on t+e $round t+at t+ere are no on$oin$ ro2eedin$s in an1 tri0una# or 0oard or 0eore a $overn"ent oi2ia# e=er2isin$ udi2ia#, uasi-

udi2ia#, or "inisteria# un2tions!.;*/ 8CPB insists t+at t+e Court e=er2ises ae##ate urisdi2tion

it+ rese2t to issues o 2onstitutiona#it1 or va#idit1 o #as and residentia# orders!.;)/

But, as t+e Court revious#1 +e#d, +ere t+ere are serious a##e$ations t+at a #a +as

inrin$ed t+e Constitution, it 0e2o"es not on#1 t+e ri$+t 0ut t+e dut1 o t+e Court to #oo5 into

su2+ a##e$ations and, +en arranted, u+o#d t+e sure"a21 o t+e Constitution!.;/ Moreover

+ere t+e issues raised are o ara"ount i"ortan2e to t+e u0#i2, as in t+is 2ase, t+e Court +ast+e dis2retion to 0rus+ aside te2+ni2a#ities o ro2edure!.


21/31


T+e individua# etitioners, on t+e ot+er +and, oin t+e etitions as ta=a1ers! T+e Court

re2o$nies t+eir ri$+t to restrain oi2ia#s ro" astin$ u0#i2 unds t+rou$+ t+e enor2e"ent o

an un2onstitutiona# statute!.


22/31


O 2ourse, un#i5e ordinar1 revenue #as, R!A! '4'( and P!D! 4*' did not raise "one1 to

0oost t+e $overn"ents $enera# unds 0ut to rovide "eans or t+e re+a0i#itation and

sta0i#iation o a t+reatened industr1, t+e 2o2onut industr1, +i2+ is so ae2ted it+ u0#i2

interest as to 0e it+in t+e o#i2e oer o t+e State! .&%/ T+e unds sou$+t to suort t+e 2o2onut

industr1, one o t+e "ain e2ono"i2 0a250ones o t+e 2ountr1, and to se2ure e2ono"i2 0eneits

or t+e 2o2onut ar"ers and ar" or5ers! T+e su0e2t #as are a5in to t+e su$ar #iens i"osed

01 Se2! *607 o P!D! ;)),.&4/ and t+e oi# ri2e sta0i#iation unds under P!D! %&',.&;/ as a"ended

01 E!O! %;*!.&


23/31


t+e #a reerred to as a trust a22ount! Ket it re"ained su0e2t to COA s2rutin1 and revie! T+e

Court inds no su0stantia# distin2tion 0eteen t+ese unds and t+e 2o2o-#ev1 unds, e=2et as to

t+e industr1 t+e1 ea2+ suort!

'ourth. Petitioners in G!R! %


24/31


p#rt o" the ge!er#% "u!&s o" the !#tio!#% go:er!e!t it+in t+e 2onte"#ation o P!D! No! *%%@ !or #s # su7si&y, &o!#tio!, %e:y, go:er!e!t "u!&e& i!:este!t, orgo:er!e!t sh#re 8ithi! the $o!tep%#tio! o" P.(.


25/31


in avor o ot+ers! But in t+e 2ase o t+e 2o2onut ar"ers, t+e1 2ou#d not, individua##1 or

2o##e2tive#1, aive +at +ave not 0een and 2ou#d not 0e #e$a##1 i"arted to t+e"!

Se2tion 4 o P!D! *&&, Arti2#e III, Se2tion & o P!D! '%, and Arti2#e III, Se2tion & o P!D

%


26/31


T+is is a#so t+e au#t o President Estradas E!O! ;%4 +i2+ dea#s it+ P% 0i##ion to 0e

$enerated out o t+e sa#e o 2o2o-und a2uired assets! T+us

Se$tio! ;. Audit of #und and Submission of Report ! T+e Co""ittee, 01 a

"aorit1 vote, sh#%% e!g#ge the ser:i$es o" # reput#7%e #u&iti!g "ir to $o!&u$t

perio&i$ #u&its o" the "u!&. It s+a## render a uarter#1 reort on a## ertinenttransa2tions and avai#"ents o t+e und to t+e Oi2e o t+e President it+in t+e irstt+ree 6;7 or5in$ da1s o t+e su22eedin$ uarter! 6E"+asis ours7

E!O! ;%; +as a su0stantia##1 identi2a# rovision $overnin$ t+e "ana$e"ent and

disosition o t+e Co2onut Trust ?und 2aita#ied it+ t+e su0stantia# SMC s+ares o sto25 t+at

t+e 2o2o-und a2uired! T+us

Se$tio! -1. A22ountin$! = = =

T+e ?und sh#%% 7e #u&ite& #!!u#%%y or #s o"te! #s !e$ess#ry 7y #! e>ter!#%

#u&itor &esig!#te& 7y the Coittee. T+e Co""ittee #y a#so reuest t+eCo""ission on Audit to 2ondu2t an audit o t+e ?und! 6E"+asis ours7

But, sin2e 2o2o-#ev1 unds are ta=es, t+e rovisions o P!D!s *&&, '% and %


27/31


raises 2o2o-#ev1 unds in t+at it er"its t+e use o 2o2o-#ev1 unds or i"rovin$ rodu2tivit1

in ot+er ood areas! T+us:

Se$tio! 6. Purose o t+e ?und! T+e ?und s+a## 0e esta0#is+ed or t+e urose

o inan2in$ ro$ra"s o assistan2e or t+e 0eneit o t+e 2o2onut ar"ers, t+e 2o2onut

industr1, #!& other #gri)re%#te& progr#s i!te!&e& to #>ii*e "oo&pro&u$ti:ity, &e:e%op 7usi!ess opportu!ities i! the $ou!trysi&e, pro:i&e

%i:e%ihoo& #%ter!#ti:es, #!& proote #!ti)po:erty progr#s. 6E"+asis ours7 = = = = Se$tio! =. 8se and Disosition o t+e Trust In2o"e! T+e Co2onut Trust ?und

Co""ittee, on an annua# 0asis, s+a## deter"ine and esta0#is+ t+e a"ount 2o"risin$t+e Trust In2o"e! Ater su2+ deter"ination, t+e Co""ittee s+a## ear"ar5, a##o2ate anddis0urse t+e Trust In2o"e or t+e o##oin$ uroses, na"e#1:

= = = = 6d7 Thirty per$e!t ?10@ o" the Trust I!$oe sh#%% 7e use& to #ssist #!&

"u!& #gri$u%tur#%%y)re%#te& progr#s or t+e Govern"ent, as reasona0#1 deter"ined 01 t+e Trust ?und Co""ittee, i"#e"ented or t+e urose o: 6i7 "a=i"iin$ ood rodu2tivit1 in t+e a$ri2u#ture areas o t+e 2ountr1, 6ii7 en+an2in$ t+e u#it"ent ande##-0ein$ o t+e #ivin$ 2onditions o ar"ers and a$ri2u#tura# or5ers, 6iii7deve#oin$ via0#e industries and 0usiness oortunities in t+e 2ountr1side, 6iv7

rovidin$ a#ternative "eans o #ive#i+ood to t+e dire2t deendents o a$ri2u#ture 0usinesses and enterrises, and 6v7 rovidin$ inan2ia# assistan2e and suort to2o2onut ar"ers in ti"es o e2ono"i2 +ards+i due to e=tre"e#1 #o ri2es o 2oraand ot+er 2o2onut rodu2ts, natura# 2a#a"ities, or#d "ar5et dis#o2ation and si"i#ar o22urren2es, in2#udin$ inan2ia# suort to t+e ERAPs Sagip Niyugan Pro$ra"esta0#is+ed under E=e2utive Order No! ;%4 dated Nove"0er ;, 4(((@ = = =! 6E"+asisours7

C#ear#1, E!O! ;%; a0ove runs 2ounter to t+e 2onstitutiona# rovision +i2+ dire2ts t+at a##

"one1 2o##e2ted on an1 ta= #evied or a se2ia# urose s+a## 0e treated as a se2ia# und and

aid out or su2+ urose on#1!.*4/Assistin$ ot+er a$ri2u#tura##1-re#ated ro$ra"s is a1 o t+e

2o2o-unds o0e2tive o ro"otin$ t+e $enera# interests o t+e 2o2onut industr1 and its ar"ers!

A ina# oint, t+e E!O!s a#so trans$ress P!D! %


28/31


oerations and dis0urse"ents o t+e Trust ?und it esta0#is+ed 62aita#ied it+ SMC s+ares

0ou$+t out o 2o2o-#ev1 unds7 in a Co2onut Trust ?und Co""ittee! T+us

Se$tio! 2. Creation o t+e Co2onut Trust ?und Co""ittee! A Coittee ishere7y $re#te& to #&i!ister, #!#ge #!& super:ise the oper#tio!s o" the Trust

'u!&, 2+aired 01 t+e President it+ ten 6%(7 "e"0ers, as o##os: 6a7 our 6


29/31


607 esta0#is+ riorities or assistan2e $ivin$ reeren2e to s"a## 2o2onut ar"ersand ar"or5ers +i2+ s+a## 0e revieed eriodi2a##1 and revised as ne2essar1in a22ordan2e it+ 2+an$in$ 2onditions@627 re2eive, ro2ess and arove roe2t roosa#s or inan2in$ 01 t+e Trust?und@

6d7 &e$i&e o! the use o" the Trust 'u!&s i!$oe or !et e#r!i!gs i!$%u&i!g"i!#% #$tio! o! #pp%i$#tio!s "or #ssist#!$e, gr#!ts #!&9or %o#!s@6e7 avai# o roessiona# 2ounse# and servi2es 01 retainin$ an invest"ent andinan2ia# "ana$er, i desired@67 "oru%#te the ru%es #!& regu%#tio!s go:er!i!g the #%%o$#tio!, uti%i*#tio!#!& &is7ursee!t o" the 'u!&@ and6$7 eror" su2+ ot+er a2ts and t+in$s as "a1 0e ne2essar1 roer or 2ondu2iveto attain t+e uroses o t+e ?und! 6E"+asis ours7

Se2tion < o E!O! ;%4 does essentia##1 t+e sa"e t+in$! It vests t+e "ana$e"ent and

disosition o t+e assistan2e und $enerated ro" t+e sa#e o 2o2o-#ev1 und-a2uired assets into

a Co""ittee o ive "e"0ers! T+us, Se2tion < o E!O! ;%4 rovides

Se$tio! . #unding ! Assets a2uired t+rou$+ t+e 2o2onut #ev1 unds or 01entities inan2ed 01 t+e 2o2onut #ev1 unds identiied 01 t+e President or aroriatedisosa# or sa#e, s+a## 0e so#d or disosed to $enerate a "a=i"u" und o ONEBILLION PESOS 6P%,(((,(((,(((!((7 +i2+ s+a## 0e #!#ge& 7y # Coittee$opose& o" # Ch#ir#! #!& "our ? e7ers to 7e #ppoi!te& 7y the Presi&e!t

8hose ter sh#%% 7e $o)teri!us 8ith the Progr#. = = = 6E"+asis ours7

In ee2t, t+e a0ove transers t+e oer to a##o2ate, use, and dis0urse 2o2o-#ev1 unds

t+at P!D! 4;4 vested in t+e PCA and transerred t+e sa"e, it+out #e$is#ative aut+oriation and

in vio#ation o P!D! 4;4, to t+e Co""ittees "entioned a0ove! An e=e2utive order 2annot reea#

a residentia# de2ree +i2+ +as t+e sa"e standin$ as a statute ena2ted 01 Con$ress!

8CPB invo5es t+e rin2i#e o seara0i#it1 to save t+e assai#ed #as ro" 0ein$ stru25

don! T+e $enera# ru#e is t+at +ere art o a statute is void as reu$nant to t+e Constitution,

+i#e anot+er art is va#id, t+e va#id ortion, i sus2eti0#e to 0ein$ searated ro" t+e inva#id,

"a1 stand and 0e enor2ed! H+en t+e arts o a statute, +oever, are so "utua##1 deendent and

2onne2ted, as 2onditions, 2onsiderations, or 2o"ensations or ea2+ ot+er, as to arrant a 0e#ie

t+at t+e #e$is#ature intended t+e" as a +o#e, t+e nu##it1 o one art i## vitiate t+e rest! In


30/31


+i2+ 2ase, i so"e arts are un2onstitutiona#, a## t+e ot+er rovisions +i2+ are t+us

deendent, 2onditiona#, or 2onne2ted "ust 2onseuent#1 a## it+ t+e"!.*&/

But, $iven t+at t+e rovisions o E!O!s ;%4 and ;%;, +i2+ as a#read1 stated inva#id#1transerred oers over t+e unds to to 2o""ittees t+at President Estrada 2reated, t+e rest o

t+eir rovisions 0e2a"e non-oerationa#! It is evident t+at President Estrada ou#d not +ave

2reated t+e ne undin$ ro$ra"s i t+e1 ere to 0e "ana$ed 01 so"e ot+er entit1! Indeed, +e

"ade +i"se# C+air"an o t+e Co2onut Trust ?und and #et to +is dis2retion t+e aoint"ent o

t+e "e"0ers o t+e ot+er 2o""ittee!

WHERE'ORE, t+e Court RANTS t+e etition in G!R! %


31/31


Cases Preamble Topic

Documents