Political Law 1 Cases Part 2

7/24/2019 Political Law 1 Cases Part 2

1/101

G.R. No. 79253 March 1, 1993

UNITED STATES OF AMERICA and MAXINERADFORD, !"#$#$on"r%,&%.'ON. (UIS R. RE)ES, a% *r"%$d$n+ -d+" o ranch 22, R"+$ona/Tr$a/ Co-r# o Ca&$#", and NE(IA T. MONTO)A, r"%!ond"n#%.

(-na, S$%on 0 Mana% or !"#$#$on"r%.

E&"/n R. Do$n+-" or !r$&a#" r"%!ond"n#.

DA4IDE, R., .

Th$% $% a !"#$#$on or c"r#$orar$ and !roh$6$#$on -nd"r R-/" 5 o #h"R-/"% o Co-r#. *"#$#$on"r% 8o-/d ha&" U% ann-/ and %"# a%$d", orha&$n+ 6""n $%%-"d 8$#h +ra&" a6-%" o d$%cr"#$on ao-n#$n+ #o /aco :-r$%d$c#$on, #h" R"%o/-#$on o 17 -/ 19;7 o ranch 22 o #h"R"+$ona/ Tr$a/ Co-r# ?;7. Th"%a$d r"%o/-#$on d"n$"d, or /ac o "r$#, !"#$#$on"r%@ o#$on #o d$%$%%#h" %a$d ca%" and +ran#"d #h" !r$&a#" r"%!ond"n#@% o#$on or #h"

$%%-anc" o a 8r$# o !r"/$$nar a##ach"n#. ($"8$%" %o-+h# #o 6"%"# a%$d" $% #h" 8r$# o a##ach"n# %-6%"-"n#/ $%%-"d 6 #h" RTCon 2; -/ 19;7.

Th" doc#r$n" o %#a#" $-n$# $% a# #h" cor" o #h$% con#ro&"r%.

Th" r"ad$n+% d$%c/o%" #h" o//o8$n+ a#"r$a/ o!"ra#$&" ac#%

*r$&a#" r"%!ond"n#, h"r"$na#"r r""rr"d #o a% Mon#oa, $% anA"r$can c$#$"n 8ho, a# #h" #$" a#"r$a/ #o #h$% ca%", 8a%"!/o"d a% an $d"n#$$ca#$on 5 a.., !/a$n#$ 8"n# %ho!!$n+ and /"# #h" %#or" a#/2 noon o #ha# da

>. Tha# on #h" 8a #o h"r car 8h$/" a/r"ad o-#%$d" #h" %#or", Mr%.)on+ "nn"d, a/%o an ID ch"c"r, -!on #h" $n%#r-c#$on o #h" %#or"ana+"r, M%. MaB$n" radord, a!!roach"d !/a$n#$ and $nor"dh"r #ha# %h" n""d"d #o %"arch h"r 6a+%

5. Tha# !/a$n#$ 8"n# #o d""ndan#, 8ho 8a% #h"n o-#%$d" #h" %#or"#a/$n+ #o %o" "n, #o !ro#"%# #h" %"arch 6-# %h" 8a% $nor"d 6#h" d""ndan# #ha# #h" %"arch $% #o 6" ad" on a// -%a+"!/o""% #ha# da

. Tha# #h" %"arch 8a% #h"r"a#"r ad" on #h" !"r%on, car and 6a+%o #h" !/a$n#$ 6 Mr%. )on+ "nn"d $n #h" !r"%"nc" o #h"d""ndan# and n-"ro-% c-r$o-% on/oo"r%

7. Tha# ha&$n+ o-nd no#h$n+ $rr"+-/ar on h"r !"r%on and 6"/on+$n+%,!/a$n#$ 8a% a//o8"d #o /"a&" #h" !r"$%"%

;. Tha# ""/$n+ a++r$"&"d, !/a$n#$ ch"c"d #h" r"cord% andd$%co&"r"d #ha# %h" 8a% #h" on/ on" 8ho%" !"r%on and 6"/on+$n+8a%


2/101

1>. Tha# con%$d"r$n+ #h" a6o&", !/a$n#$ $% "n#$#/"d #o 6" co!"n%a#"d6 8a o ora/ daa+"% $n #h" ao-n# o *5,.

15. Tha# #o %"r&" a% a d"#"rr"n# #o #ho%" $nc/$n"d #o o//o8 #h"o!!r"%%$&" ac# o #h" d""ndan#, "B"!/ar daa+"% $n #h" ao-n#o *1,. %ho-/d a/%o 6" a8ard"d. 2

Sh" #h"n !ra"d or :-d+"n# ord"r$n+ radord #o !a h"r*5,. a% ora/ daa+"%, *1,. a% "B"!/ar

daa+"% and r"a%ona6/" a##orn"@% ""% !/-% #h" co%#% o #h" %-$#. 3

S-on% and a co! o #h" co!/a$n# 8"r" %"r&"d on radord on13 Ma 19;7. In r"%!on%" #h"r"#o, %h" $/"d #8o 7and M$/$#ar a%"% A+r"""n# o 19>7, a% a"nd"d.

In %-!!or# o #h" o#$on, #h" !"#$#$on"r% c/a$"d #ha# USMAG,co!o%"d o an Ar, Na& and A$r Gro-!, had 6""n "%#a6/$%h"d-nd"r #h" *h$/$!!$n"?Un$#"d S#a#"% M$/$#ar A%%$%#anc" A+r"""n#"n#"r"d $n#o on 21 March 19>7 #o $!/""n# #h" Un$#"d S#a#"%@!ro+ra o r"nd"r$n+ $/$#ar a%%$%#anc" #o #h" *h$/$!!$n"%. I#%h"ad-ar#"r% $n -"on C$# $% con%$d"r"d a #"!orar $n%#a//a#$on-nd"r #h" !ro&$%$on% o Ar#$c/" XXI o #h" M$/$#ar a%"% A+r"""n# o19>7. Th"r"-nd"r, H$# $% -#-a// a+r""d #ha# #h" Un$#"d S#a#"% %ha//ha&" #h" r$+h#%, !o8"r and a-#hor$# 8$#h$n #h" 6a%"% 8h$ch ar"n"c"%%ar or #h" "%#a6/$%h"n#, -%" and o!"ra#$on and d""n%"#h"r"o or a!!ro!r$a#" or #h" con#ro/ #h"r"o.H Th" 1979 a"nd"n#o #h" M$/$#ar a%"% A+r"""n# ad" $# c /"ar #ha# #h" Un$#"d S#a#"%%ha// ha&" H#h" -%" o c"r#a$n ac$/$#$"% and ar"a% 8$#h$n #h" 6a%"%and %ha// ha&" ""c#$&" coand and con#ro/ o&"r %-ch ac$/$#$"% ando&"r Un$#"d S#a#"% !"r%onn"/, "!/o""%, "-$!"n# and a#"r$a/.HUSMAG a$n#a$n%, a# $#% -"on C$# h"ad-ar#"r%, a Na&EBchan+" r""rr"d #o a% #h" NEX?USMAG. Ch"c$n+ o !-rcha%"%a# #h" NEX $% a ro-#$n" !roc"d-r" o6%"r&"d a# 6a%" r"#a$/ o-#/"#% #o!ro#"c# and %a"+-ard "rchand$%", ca%h and "-$!"n# !-r%-an# #o!ara+ra!h% 2 and >


3/101

U!on Mon#oa@% $/$n+ o #h" r"-$r"d 6ond, #h" #r$a/ co-r# $%%-"d on2; -/ 19;7 an Ord"r 15 d"cr""$n+ #h" $%%-anc" o a 8r$# oa##ach"n# and d$r"c#$n+ #h" %h"r$ #o %"r&" #h" 8r$# $"d$a#"/ a##h" "B!"n%" o #h" !r$&a#" r"%!ond"n#. Th" 8r$# o a##ach"n# 8a%$%%-"d on #ha# %a" da#". 1

In%#"ad o $/$n+ a o#$on #o r"con%$d"r #h" /a%# #8o 7 and M$/$#ar a%"% A+r"""n#o 19>7, a% a"nd"d. 17

On 5 A-+-%# 19;7, #h" #r$a/ co-r# %"# C$&$/ Ca%" No. 22>?;7 or !r"?#r$a/ and #r$a/ on 27 A-+-%# 19;7 a# 93 a..1;

On 12 A-+-%# 19;7, #h$% Co-r# r"%o/&"d #o r"-$r" #h" r"%!ond"n#% #oco"n# on #h" !"#$#$on. 19

On 19 A-+-%# 19;7, !"#$#$on"r% $/"d 8$#h #h" #r$a/ co-r# a Mo#$on#o S-%!"nd *roc""d$n+% 2 8h$ch #h" /a##"r d"n$"d $n $#% Ord"r o 21

A-+-%# 19;7. 21

In #h" "an#$", ho8"&"r, or a$/-r" #o $/" an an%8"r, radord 8a%d"c/ar"d $n d"a-/# $n C$&$/ Ca%" No. 22>?;7 and Mon#oa 8a%a//o8"d #o !r"%"n# h"r "&$d"nc" "B?!ar#". 22 Sh" #h-% #oo #h"8$#n"%% %#and and !r"%"n#"d Mr%. Na Th$ Moor" and Mr%. M$%% )-a% h"r 8$#n"%%"%.

On 1 S"!#"6"r 19;7, #h" #r$a/ co-r# r"nd"r"d $#% d"c$%$on 23 $nC$&$/ Ca%" No. 22>?;7, #h" d$%!o%$#$&" !or#$on o 8h$ch r"ad%

*r"%c$nd$n+ ro #h" or"+o$n+, $# $% h"r"6 d"#"r$n"d #ha# #h"

-nr"a%ona6/" %"arch on #h" !/a$n#$@% !"r%on and 6a+ ca-%"d


4/101

No&"6"r199. 3>

Th" "rn"/ $%%-" !r"%"n#"d $n #h$% ca%" $% 8h"#h"r or no# #h" #r$a/co-r# co$##"d +ra&" a6-%" o d$%cr"#$on $n d"n$n+ #h" o#$on #od$%$%% 6a%"d on #h" o//o8$n+ +ro-nd% ?;7 $% $n ""c# a %-$# a+a$n%# #h" !-6/$c !"#$#$on"r, aor"$+n %o&"r"$+n $-n" ro %-$# 8h$ch ha% no# +$&"n con%"n# #o%-ch %-$# and 7 and #h" M$/$#ar a%"%A+r"""n# o 19>7, a% a"nd"d.

A%$d" ro a$n#a$n$n+ #h" a$ra#$&" &$"8, #h" !-6/$c !"#$#$on"r andradord "&"n +o -r#h"r 6 a%%"r#$n+ #ha# "&"n $ #h" /a##"r@% ac# 8"r"-/#ra &$r"% %h" 8o-/d %#$// 6" $-n" ro %-$# or #h" r-/" #ha# !-6/$co$c"r% or "!/o""% a 6" %-"d $n #h"$r !"r%ona/ ca!ac$# or -/#ra&$r"% and #or#$o-% ac#% $% Hdo"%#$c /a8H and no# a!!/$ca6/" $nIn#"rna#$ona/ (a8. I# $% c /a$"d #ha# #h" a!!/$ca#$on o #h" $-n$#doc#r$n" do"% no# #-rn -!on #h" /a8/"%%n"%% o #h" ac# or o$%%$ona##r$6-#a6/" #o #h" or"$+n na#$ona/ or $ #h$% 8"r" #h" ca%", #h"conc"!# o $-n$# 8o-/d 6" "an$n+/"%% a% $n-$r $n#o #h"/a8/"%%n"%% or $//"+a/$# o #h" ac# or o$%%$on 8o-/d $r%# ha&" #o 6"ad" 6"or" con%$d"r$n+ #h" -"%#$on o $-n$# $n o#h"r 8ord%,$-n$# 8$// /$" on/ $ %-ch ac# or o$%%$on $% o-nd #o 6" /a8-/.

On #h" o#h"r hand, Mon#oa %-6$#% #ha# radord $% no# co&"r"d 6#h" !ro#"c#$&" an#/" o #h" doc#r$n" o %o&"r"$+n $-n$# ro %-$#a% #h" /a##"r $% a "r" c$&$/$an "!/o"" o USMAG !"ror$n+ non?+o&"rn"n#a/ and !ro!r$"#ar -nc#$on%. And "&"n a%%-$n+ar+-"ndo #ha# radord $% !"ror$n+ +o&"rn"n#a/ -nc#$on%, %h"

8o-/d %#$// r"a$n o-#%$d" #h" co&"ra+" o #h" doc#r$n" o %#a#"$-n$# %$nc" #h" ac# co!/a$n"d o $% -/#ra &$r"%or o-#%$d" #h"%co!" o h"r a-#hor$#. Jha# $% 6"$n+ -"%#$on"d $% no# #h" ac# o%"arch a/on", 6-# a/%o #h" ann"r $n 8h$ch #h" %a" 8a% cond-c#"da% 8"// a% #h" ac# o d$%cr$$na#$on a+a$n%# F$/$!$no "!/o""%.radord@% a-#hor$# #o ord"r a %"arch, $# $% a%%"r#"d, %ho-/d ha&"6""n "B"rc$%"d 8$#h r"%#ra$n# and %ho-/d ha&" 6""n $n accordanc"8$#h #h" +-$d"/$n"% and !roc"d-r"% /a$d do8n 6 #h" c$#"dHNA4RESA(EACT, S-6$c In%#.H Mor"o&"r, -/#ra &$r"% ac#% o a !-6/$co$c"r or "!/o"", "%!"c$a// #or#$o-% and cr$$na/ ac#%, ar" h$%!r$&a#" ac#% and a no# 6" con%$d"r"d a% ac#% o #h" S#a#". S-cho$c"r or "!/o"" a/on" $% an%8"ra6/" or an /$a6$/$# ar$%$n+

#h"r"ro and a #h-% 6" !roc""d"d a+a$n%# $n h$% !"r%ona/ca!ac$#.

Mon#oa -r#h"r ar+-"% #ha# 6o#h #h" ac#% and !"r%on o radord ar"no# "B"!# ro #h" *h$/$!!$n" co-r#%@ :-r$%d$c#$on 6"ca-%"

A car"-/ r"&$"8 o #h" r"cord% o #h$% ca%" and a :-d$c$o-% %cr-#$n o#h" ar+-"n#% o 6o#h !ar#$"% $"/d no#h$n+ 6-# #h" 8"an"%% o #h"!"#$#$on"r%@ %#and. Jh$/" #h$% can 6" "a%$/ d"on%#ra#"d, J" %ha//$r%# con%$d"r %o" !roc"d-ra/ a##"r%.

D"%!$#" #h" ac# #ha# !-6/$c !"#$#$on"r 8a% no# $!/"ad"d a% ad""ndan# $n C$&$/ Ca%" No. 22>?;7, $# n"&"r#h"/"%% :o$n"d radord $n

#h" o#$on #o d$%$%% on #h" #h"or #ha# #h" %-$# 8a% $n ""c#a+a$n%# $# 8$#ho-#, ho8"&"r, $r%# ha&$n+ o6#a$n"d /"a&" o co-r# #o$n#"r&"n" #h"r"$n. Th$% 8a% a !roc"d-ra/ /a!%", $ no# a do8nr$+h#$!ro!"r /"+a/ #ac. S$nc" $ # 8a% no# $!/"ad"d a% an or$+$na/ !ar#,#h" !-6/$c !"#$#$on"r co-/d, on $#% o8n &o/$#$on, :o$n $n #h" ca%" on/ 6$n#"r&"n$n+ #h"r"$n %-ch $n#"r&"n#$on, #h" +ran# o 8h$ch $%d$%cr"#$onar -!on #h" co-r#, 37 a 6" a//o8"d on/ -!on a !r$oro#$on or /"a&" 8$#h no#$c" #o a// #h" !ar#$"% $n #h" ac#$on. O co-r%",Mon#oa co-/d ha&" a/%o $!/"ad"d #h" !-6/$c !"#$#$on"r a% anadd$#$ona/ d""ndan# 6 a"nd$n+ #h" co!/a$n# $ %h" %o 6"/$"&"d#ha# #h" /a##"r $% an $nd$%!"n%$6/" or n"c"%%ar !ar#.

S$nc" #h" #r$a/ co-r# "n#"r#a$n"d #h" o#$on #o d$%$%% and #h"%-6%"-"n# !/"ad$n+% $/"d 6 #h" !-6/$c !"#$#$on"r and radord, $#a 6" d"""d #o ha&" a//o8"d #h" !-6/$c !"#$#$on"r #o $n#"r&"n".Coro//ar$/, 6"ca-%" o $#% &o/-n#ar a!!"aranc", #h" !-6/$c !"#$#$on"r-%# 6" d"""d #o ha&" %-6$##"d $#%"/ #o #h" :-r$%d$c#$on o #h" #r$a/co-r#.

Mor"o&"r, #h" %a$d o#$on do"% no# %!"c$ an o #h" +ro-nd% or ao#$on #o d$%$%% "n-"ra#"d $n S"c#$on 1, R-/" 1 o #h" R-/"% oCo-r#. I# "r"/ r"c$#"% %#a#" $-n$# on #h" !ar# o #h" !-6/$c!"#$#$on"r and $-n$# on #h" !ar# o radord or #h" r"a%on #ha# #h"

ac# $!-#"d #o h"r 8a% don" $n #h" !"roranc" o h"r o$c$a/-nc#$on%. Th" -!%ho# o #h$% con#"n#$on $% ac#-a// /ac o ca-%" oac#$on a %!"c$$c +ro-nd or d$%$%%a/ -nd"r #h" aor"%a$d R-/" 6"ca-%" a%%-$n+ ar+-"ndo #ha# Mon#oa@% r$+h#% had 6""n &$o/a#"d6 #h" !-6/$c !"#$#$on"r and radord, r"%-/#$n+ $n daa+" or $n:-r #o#h" or"r, 6o#h 8o-/d no# 6" /$a6/" #h"r"or, and no ac#$on a 6"a$n#a$n"d #h"r"on, 6"ca-%" o #h" !r$nc$!/" o %#a#" $-n$#.

Th" #"%# o #h" %-$c$"nc o #h" ac#% #o con%#$#-#" a ca-%" o ac#$on$% 8h"#h"r or no#, ad$##$n+ #h" ac#% a//"+"d $n #h" co!/a$n#, #h"co-r# co-/d r"nd"r a &a/$d :-d+"n# -!on #h" %a", $n accordanc"8$#h #h" !ra"r $n #h" co!/a$n#. 3;


5/101

A o#$on #o d$%$%% on #h" +ro-nd o a$/-r" #o %#a#" a ca-%" o ac#$onh!o#h"#$ca// ad$#% #h" #r-#h o #h" a//"+a#$on% $n #h" co!/a$n#.

In d"c$d$n+ a o#$on #o d$%$%%, a co-r# a +ran#, d"n, a//o8a"nd"n#% #o #h" !/"ad$n+% or d""r #h" h"ar$n+ and d"#"r$na#$ono #h" %a" $ #h" +ro-nd a//"+"d do"% no# a!!"ar #o 6"$nd-6$#a6/". 39 In #h" $n%#an# ca%", 8h$/" #h" #r$a/ co-r# conc/-d"d #ha#H#h" +ro-nd% and ar+-"n#% $n#"r!o%"d or #h" d$%$%%a/H ar" no#H$nd-6$#a6/",H $# d"n$"d #h" o#$on or /ac o "r$#. Jha# #h" #r$a/

co-r# %ho-/d ha&" don" 8a% #o d""r #h"r" %o/-#$on on #h" o#$on$n%#"ad o d"n$n+ $# or /ac o "r$#.

In an "&"n#, 8ha#"&"r a or %ho-/d ha&" 6""n don", #h" !-6/$c!"#$#$on"r and radord 8"r" no# "B!"c#"d #o acc"!# #h" &"rd$c#,a$n+ #h"$r r"co-r%" #o #h$% Co-r# &$a #h" $n%#an# !"#$#$on $n"&$#a6/".Th-%, 8h"#h"r #h" #r$a/ co-r# %ho-/d ha&" d""rr"d r"%o/-#$on on ord"n$"d o-#r$+h# #h" o#$on #o d$%$%% or /ac o "r$# $% no /on+"r!"r#$n"n# or r"/"&an#.

Th" co!/a$n# $n C$&$/ Ca%" No. 22>?;7 $% or daa+"% ar$%$n+ ro8ha# Mon#oa d"%cr$6"% a% an H$//"+a/ %"archH on h"r H!"r%on and

6"/on+$n+%H cond-c#"d o-#%$d" #h" USMAG !r"$%"% $n ron# oan !"o!/" and -!on #h" ord"r% o radord, 8ho ha% #h"!ro!"n%$# or /a$n+ %-%!$c$on on F$/$!$no% or #h"# or %ho!/$#$n+. I# $%a&"rr"d #ha# #h" %a$d %"arch 8a% d$r"c#"d on/ a+a$n%# Mon#oa.

'o8%o"&"r &$"8"d, $# $% 6"ond do-6# #ha# Mon#oa@% ca-%" o ac#$on$% !r"$%"d on #h" #h"or #ha# #h" ac#% co!/a$n"d o 8"r"co$##"d 6 radord no# on/ o-#%$d" #h" %co!" o h"r a-#hor$# or or" %!"c$$ca//, $n h"r !r$&a#" ca!ac$# 6-# a/%o o-#%$d" #h"#"rr$#or 8h"r" %h" "B"rc$%"% %-ch a-#hor$#, #ha# $%, o-#%$d" #h" NEX?USMAG !ar#$c-/ar/, a# #h" !ar$n+ ar"a 8h$ch ha% no# 6""n%ho8n #o or !ar# o #h" ac$/$# o 8h$ch %h" 8a% #h" ana+"r. #h"$r o#$on #o d$%$%%, !-6/$c !"#$#$on"r and radord ar" d"""d #oha&" h!o#h"#$ca// ad$##"d #h" #r-#h o #h" a//"+a#$on $n #h"co!/a$n# 8h$ch %-!!or# #h$% #h"or.

Th" doc#r$n" o %#a#" $-n$# and #h" "Bc"!#$on% #h"r"#o ar"%-ar$"d $n Sha- &%. Co-r# o A!!"a/%, > #h-%

I. Th" r-/" #ha# a %#a#" a no# 6" %-"d 8$#ho-# $#% con%"n#, no8"B!r"%%"d $n Ar#$c/" X4I S"c#$on 3, o #h" 19;7 Con%#$#-#$on, $% on" o#h" +"n"ra// acc"!#"d !r$nc$!/"% o $n#"rna#$ona/ /a8 #ha# 8" ha&"ado!#"d a% !ar# o #h" /a8 o o-r /and -nd"r Ar#$c/" II, S"c#$on 2. Th$%/a##"r !ro&$%$on "r"/ r"$#"ra#"% a !o/$c "ar/$"r "6od$"d $n #h"1935 and 1973 Con%#$#-#$on% and a/%o $n#"nd"d #o an$"%# o-rr"%o/&" #o a6$d" 6 #h" r-/"% o #h" $n#"rna#$ona/ co-n$#. >1

Jh$/" #h" doc#r$n" a!!"ar% #o !roh$6$# on/ %-$#% a+a$n%# #h" %#a#"8$#ho-# $#% con%"n#, $# $% a/%o a!!/$ca6/" #o co!/a$n#% $/"d a+a$n%#o$c$a/% o #h" %#a#" or ac#% a//"+"d/ !"ror"d 6 #h" $n #h"d$%char+" o #h"$r d-#$"%. Th" r-/" $% #ha# $ #h" :-d+"n# a+a$n%# %-cho$c$a/% 8$// r"-$r" #h" %#a#" $#%"/ #o !"ror an a$ra#$&" ac# #o%a#$% #h" %a", %-ch a% #h" a!!ro!r$a#$on o #h" ao-n# n""d"d #o!a #h" daa+"% a8ard"d a+a$n%# #h", #h" %-$# -%# 6" r"+ard"da% a+a$n%# #h" %#a#" $#%"/ a/#ho-+h $# ha% no# 6""n ora//

$!/"ad"d. >2 I# -%# 6" no#"d, ho8"&"r, #ha# #h" r-/" $% no# %o a//?"nco!a%%$n+ a% #o 6" a!!/$ca6/" -nd"r a// c$rc-%#anc"%.

I# $% a d$"r"n# a##"r 8h"r" #h" !-6/$c o$c$a/ $% ad" #o acco-n# $nh$% ca!ac$# a% %-ch or ac#% con#rar #o /a8 and $n:-r$o-% #o #h"r$+h#% o !/a$n#$. A% 8a% c/"ar/ %"# or#h 6 -%#$c" Ka/d$&ar $nD$r"c#or o #h" -r"a- o T"/"co-n$ca#$on%, "# a/. &%. A/$+a"n, "#c.,"# a/. >3 HIna%-ch a% #h" S#a#" a-#hor$"% on/ /"+a/ ac#% 6 $#%o$c"r%, -na-#hor$"d ac#% o +o&"rn"n# o$c$a/% or o$c"r% ar" no#

ac#% o #h" S#a#", and an ac#$on a+a$n%# #h" o$c$a/% or o$c"r% 6 on"8ho%" r$+h#% ha&" 6""n $n&ad"d or &$o/a#"d 6 %-ch ac#%, or #h"!ro#"c#$on o h$% r$+h#%, $% no# a %-$# a+a$n%# #h" S#a#" 8$#h$n #h" r-/"o $-n$# o #h" S#a#" ro %-$#. In #h" %a" #"nor, $# ha% 6""n %a$d#ha# an ac#$on a# /a8 or %-$# $n "-$# a+a$n%# a S#a#" o$c"r or #h"d$r"c#or o a S#a#" d"!ar#"n# on #h" +ro-nd #ha#, 8h$/" c/a$$n+ #oac# or #h" S#a#", h" &$o/a#"% or $n&ad"% #h" !"r%ona/ and !ro!"r#r$+h#% o #h" !/a$n#$, -nd"r an -ncon%#$#-#$ona/ ac# or -nd"r ana%%-!#$on o a-#hor$# 8h$ch h" do"% no# ha&", $% no# a %-$# a+a$n%##h" S#a#" 8$#h$n#h" con%#$#-#$ona/ !ro&$%$on #ha# #h" S#a#" a no# 6" %-"d 8$#ho-# $#%

con%"n#.H >> Th" ra#$ona/" or #h$% r-/$n+ $% #ha# #h" doc#r$na$r" o%#a#" $-n$# canno# 6" -%"d a% an $n%#r-"n# or !"r!"#ra#$n+ an$n:-%#$c". >5

In #h" ca%" o a"r, "#c. &%. T$on, "#c., "# a/., > $# 8a% r-/"d #ha#

Th"r" %ho-/d 6" no $%$n#"r!r"#a#$on o #h" %co!" o #h" d"c$%$onr"ach"d 6 #h$% Co-r#. *"#$#$on"r, a% #h" Coand"r o #h" Un$#"dS#a#"% Na&a/ a%" $n O/on+a!o, do"% no# !o%%"%% d$!/oa#$c$-n$#. '" a #h"r"or" 6" !roc""d"d a+a$n%# $n h$% !"r%ona/ca!ac$#, or 8h"n #h" ac#$on #a"n 6 h$ canno# 6" $!-#"d #o #h"+o&"rn"n# 8h$ch h" r"!r"%"n#%.

A/%o, $n An$o%, "# a/. &%. *h$/$!!$n" 4"#"ran% Aa$r% O$c", "#a/., >7 8" h"/d #ha#

. . . $# $% "-a// 8"//?%"##/"d #ha# 8h"r" a /$#$+a#$on a ha&" ad&"r%"con%"-"nc"% on #h" !-6/$c #r"a%-r, 8h"#h"r $n #h" d$%6-r%""n#%o -nd% or /o%% o !ro!"r#, #h" !-6/$c o$c$a/ !roc""d"d a+a$n%# no#6"$n+ /$a6/" $n h$% !"r%ona/ ca!ac$#, #h"n #h" doc#r$n" o non?%-a6$/$#a a!!ro!r$a#"/ 6" $n&o"d. I# ha% no a!!/$ca#$on, ho8"&"r, 8h"r"#h" %-$# a+a$n%# %-ch a -nc#$onar had #o 6" $n%#$#-#"d 6"ca-%" o h$%a$/-r" #o co!/ 8$#h #h" d-# $!o%"d 6 %#a#-#" a!!ro!r$a#$n+!-6/$c -nd% or #h" 6"n"$# o !/a$n#$ or !"#$#$on"r. . . . .

Th" aor"c$#"d a-#hor$#$"% ar" c/"ar on #h" a##"r. Th" %#a#" #ha# #h"doc#r$n" o $-n$# ro %-$# 8$// no# a!!/ and a no# 6" $n&o"d8h"r" #h" !-6/$c o$c$a/ $% 6"$n+ %-"d $n h$% !r$&a#" and !"r%ona/ca!ac$# a% an ord$nar c$#$"n. Th" c/oa o !ro#"c#$on aord"d #h"o$c"r% and a+"n#% o #h" +o&"rn"n# $% r"o&"d #h" o"n# #h"ar" %-"d $n #h"$r $nd$&$d-a/ ca!ac$#. Th$% %$#-a#$on -%-a// ar$%"%8h"r" #h" !-6/$c o$c$a/ ac#% 8$#ho-# a-#hor$# or $n "Bc"%% o #h"!o8"r% &"%#"d $n h$. I# $% a 8"//?%"##/"d !r$nc$!/" o /a8 #ha# a !-6/$co$c$a/ a 6" /$a6/" $n h$% !"r%ona/ !r$&a#" ca!ac$# or 8ha#"&"rdaa+" h" a ha&" ca-%"d 6 h$% ac# don"


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8$#h a/$c" and $n 6ad a$#h, or 6"ond #h" %co!" o h$% a-#hor$# or:-r$%d$c#$on. >;

Th" a+"n#% and o$c$a/% o #h" Un$#"d S#a#"% ar"d orc"% %#a#$on"d$n C/ar A$r a%" ar" no "Bc"!#$on #o #h$% r-/". In #h" ca%" o Un$#"dS#a#"% o A"r$ca, "# a/. &%. G-$n#o, "#c., "# a/., an#", >9 8" d"c/ar"d

I# 6"ar% %#r"%%$n+ a# #h$% !o$n# #ha# #h" a6o&" o6%"r&a#$on% do no#con"r on #h" Un$#"d S#a#"% o A"r$ca /an"# $-n$# or a// ac#%

don" 6 $# or $#% a+"n#% $n #h" *h$/$!!$n"%. N"$#h"r a #h" o#h"r!"#$#$on"r% c/a$ #ha# #h" ar" a/%o $n%-/a#"d ro %-$# $n #h$% co-n#r"r"/ 6"ca-%" #h" ha&" ac#"d a% a+"n#% o #h" Un$#"d S#a#"% $n#h" d$%char+" o #h"$r o$c$a/ -nc#$on%.

S$nc" $# $% a!!ar"n# ro #h" co!/a$n# #ha# radord 8a% %-"d $n h"r!r$&a#" or !"r%ona/ ca!ac$# or ac#% a//"+"d/ don" 6"ond #h" %co!"and "&"n 6"ond h"r !/ac" o o$c$a/ -nc#$on%, %a$d co!/a$n# $% no##h"n &-/n"ra6/" #o a o#$on #o d$%$%% 6a%"d on #h" +ro-nd% r"/$"d-!on 6 #h" !"#$#$on"r% 6"ca-%" a% a con%"-"nc" o #h"h!o#h"#$ca/ ad$%%$on o #h" #r-#h o #h" a//"+a#$on% #h"r"$n, #h" ca%"a//% 8$#h$n #h" "Bc"!#$on #o #h" doc#r$n" o %#a#" $-n$#.

In #h" r"c"n# ca%"% o J$//$a% &%. Raran+ 5 and M$n-ch"r &%. Co-r#o A!!"a/%, 51 #h$% Co-r# r"$#"ra#"d #h$% "Bc"!#$on. In #h" or"r, #h$%Co-r# o6%"r&"d

Th"r" $% no -"%#$on, #h"r"or", #ha# #h" #8o

T'E 'O() SEE, !"#$#$on"r,&%.T'E 'ON. ERIERTO U. ROSARIO, R., a% *r"%$d$n+ -d+" o #h"R"+$ona/ Tr$a/ Co-r# o Maa#$, ranch 1 and STARRIG'T SA(ESENTER*RISES, INC., r"%!ond"n#%.

*ad$//a (a8 O$c" or !"#$#$on"r.

S$+-$on R"na, Mon#"c$//o 0 On+%$ao or !r$&a#" r"%!ond"n#.

UIASON, .

Th$% $% a !"#$#$on or c"r#$orar$ -nd"r R-/" 5 o #h" R"&$%"d R-/"% oCo-r# #o r"&"r%" and %"# a%$d" #h" Ord"r% da#"d -n" 2, 1991 andS"!#"6"r 19, 1991 o #h" R"+$ona/ Tr$a/ Co-r#, ranch 1, Maa#$,M"#ro Man$/a $n C$&$/ Ca%" No. 9?1;3.

Th" Ord"r da#"d -n" 2, 1991 d"n$"d #h" o#$on o !"#$#$on"r #od$%$%% #h" co!/a$n# $n C$&$/ Ca%" No. 9?1;3, 8h$/" #h" Ord"rda#"d S"!#"6"r 19, 1991 d"n$"d #h" o#$on or r"con%$d"ra#$on o#h" -n" 2,1991 Ord"r.


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*"#$#$on"r $% #h" 'o/ S"" 8ho "B"rc$%"% %o&"r"$+n# o&"r #h" 4a#$canC$# $n Ro", I#a/, and $% r"!r"%"n#"d $n #h" *h$/$!!$n"% 6 #h" *a!a/N-nc$o.

*r$&a#" r"%!ond"n#, S#ar6r$+h# Sa/"% En#"r!r$%"%, Inc., $% a do"%#$ccor!ora#$on "n+a+"d $n #h" r"a/ "%#a#" 6-%$n"%%.

Th$% !"#$#$on aro%" ro a con#ro&"r% o&"r a !arc"/ o /andcon%$%#$n+ o , %-ar" "#"r% >= /oca#"d $n #h" M-n$c$!a/$# o *araa-", M"#roMan$/a and r"+$%#"r"d $n #h" na" o !"#$#$on"r.

Sa$d (o# 5?A $% con#$+-o-% #o (o#% 5? and 5?D 8h$ch ar" co&"r"d 6Tran%"r C"r#$$ca#"% o T$#/" No%. 2711; and 253;; r"%!"c#$&"/and r"+$%#"r"d $n #h" na" o #h" *h$/$!!$n" R"a/# Cor!ora#$on. !"r %-ar" "#"r%


8/101

r""r #o ar+-"n#% r"/a#$&" #o $#% c/a$ o %o&"r"$+n $-n$# ro%-$#H > 199 and co!an$on ca%"%=. Inca%"% 8h"r" #h" or"$+n %#a#"% 6!a%% #h" For"$+n O$c", #h" co-r#%can $n-$r" $n#o #h" ac#% and a" #h"$r o8n d"#"r$na#$on a% #o #h"na#-r" o #h" ac#% and #ran%ac#$on% $n&o/&"d.

III

Th" 6-rd"n o #h" !"#$#$on $% #ha# r"%!ond"n# #r$a/ co-r# ha% no:-r$%d$c#$on o&"r !"#$#$on"r, 6"$n+ a or"$+n %#a#" "n:o$n+ %o&"r"$+n$-n$#. On #h" o#h"r hand, !r$&a#" r"%!ond"n# $n%$%#% #ha# #h"doc#r$n" o non?%-a6$/$# $% no# anor" a6%o/-#" and #ha# !"#$#$on"rha% d$&"%#"d $#%"/ o %-ch a c/oa 8h"n, o $#% o8n r"" 8$//, $#"n#"r"d $n#o a co"rc$a/ #ran%ac#$on or #h" %a/" o a !arc"/ o /and/oca#"d $n #h" *h$/$!!$n"%.

A. Th" 'o/ S""

"or" 8" d"#"r$n" #h" $%%-" o !"#$#$on"r@% non?%-a6$/$#, a 6r$"/oo $n#o $#% %#a#-% a% a %o&"r"$+n %#a#" $% $n ord"r.

"or" #h" ann"Ba#$on o #h" *a!a/ S#a#"% 6 I#a/ $n 1;7, #h" *o!"8a% #h" onarch and h", a% #h" 'o/ S"", 8a% con%$d"r"d a %-6:"c#o In#"rna#$ona/ (a8. J$#h #h" /o%% o #h" *a!a/ S#a#"% and #h"/$$#a#$on o #h" #"rr$#or -nd"r #h" 'o/ S"" #o an ar"a o 1;.7acr"%, #h" !o%$#$on o #h" 'o/ S"" $n In#"rna#$ona/ (a8 6"ca"con#ro&"r%$a/


9/101

$n #h" $"/d o $n#"rna#$ona/ r"/a#$on%H > 199=.

Th"r" ar" #8o con/$c#$n+ conc"!#% o %o&"r"$+n $-n$#, "ach8$d"/ h"/d and $r/ "%#a6/$%h"d. Accord$n+ #o #h" c/a%%$ca/ ora6%o/-#" #h"or, a %o&"r"$+n canno#, 8$#ho-# $#% con%"n#, 6" ad" ar"%!ond"n# $n #h" co-r#% o ano#h"r %o&"r"$+n. Accord$n+ #o #h"n"8"r or r"%#r$c#$&" #h"or, #h" $-n$# o #h" %o&"r"$+n $%

r"co+n$"d on/ 8$#h r"+ard #o !-6/$c ac#% or ac#% :-r" $!"r$$ o a%#a#", 6-# no# 8$#h r"+ard #o !r$&a#" ac#% or ac#% :-r" +"%#$on$% 19;>=.

So" %#a#"% !a%%"d /"+$%/a#$on #o %"r&" a% +-$d"/$n"% or #h""B"c-#$&" or :-d$c$a/ d"#"r$na#$on 8h"n an ac# a 6" con%$d"r"da% :-r" +"%#$on$%. Th" Un$#"d S#a#"% !a%%"d #h" For"$+n So&"r"$+nI-n$#$"% Ac# o 197, 8h$ch d"$n"% a co"rc$a/ ac#$&$# a%

H"$#h"r a r"+-/ar co-r%" o co"rc$a/ cond-c# or a !ar#$c-/arco"rc$a/ #ran%ac#$on or ac#.H F-r#h"ror", #h" /a8 d"c/ar"d #ha##h" Hco"rc$a/ charac#"r o #h" ac#$&$# %ha// 6" d"#"r$n"d 6r""r"nc" #o #h" na#-r" o #h" co-r%" o cond-c# or !ar#$c-/ar#ran%ac#$on or ac#, ra#h"r #han 6 r""r"nc" #o $#% !-r!o%".H Th"Canad$an *ar/$a"n# "nac#"d $n 19;2 an Ac# #o *ro&$d" For S#a#"I-n$# $n Canad$an Co-r#%. Th" Ac# d"$n"% a Hco"rc$a/ ac#$&$#Ha% an !ar#$c-/ar #ran%ac#$on, ac# or cond-c# or an r"+-/ar co-r%" ocond-c# #ha# 6 r"a%on o $#% na#-r", $% o a Hco"rc$a/ charac#"r.H

Th" r"%#r$c#$&" #h"or, 8h$ch $% $n#"nd"d #o 6" a %o/-#$on #o #h" ho%# o!ro6/"% $n&o/&$n+ #h" $%%-" o %o&"r"$+n $-n$#, ha% cr"a#"d!ro6/"% o $#% o8n. ("+a/ #r"a#$%"% and #h" d"c$%$on% $n co-n#r$"%8h$ch o//o8 #h" r"%#r$c#$&" #h"or ha&" d$$c-/# $n charac#"r$$n+8h"#h"r a con#rac# o a %o&"r"$+n %#a#" 8$#h a !r$&a#" !ar# $% anac# :-r" +"%#$on$% or an ac# :-r" $!"r$$.

Th" r"%#r$c#$&" #h"or ca" a6o-# 6"ca-%" o #h" "n#r o %o&"r"$+n%#a#"% $n#o !-r"/ co"rc$a/ ac#$&$#$"% r"o#"/ conn"c#"d 8$#h #h"d$%char+" o +o&"rn"n#a/ -nc#$on%. Th$% $% !ar#$c-/ar/ #r-" 8$#hr"%!"c# #o #h" Co-n$%# %#a#"% 8h$ch #oo con#ro/ o na#$ona/$"d6-%$n"%% ac#$&$#$"% and $n#"rna#$ona/ #rad$n+.

Th$% Co-r# ha% con%$d"r"d #h" o//o8$n+ #ran%ac#$on% 6 a or"$+n%#a#" 8$#h !r$&a#" !ar#$"% a% ac#% :-r" $!"r$$ *h$/. 312 19>9 > 199= and > 199=. Th"o!"ra#$on o #h" r"%#a-ran#% and o#h"r ac$/$#$"% o!"n #o #h" +"n"ra/!-6/$c $% -ndo-6#"d/ or !ro$# a% a co"rc$a/ and no# a+o&"rn"n#a/ ac#$&$#. "n#"r$n+ $n#o #h" "!/o"n# con#rac# 8$#h#h" coo $n #h" d$%char+" o $#% !ro!r$"#ar -nc#$on, #h" Un$#"d S#a#"%


10/101

+o&"rn"n# $!/$"d/ d$&"%#"d $#%"/ o $#% %o&"r"$+n $-n$# ro%-$#.

In #h" a6%"nc" o /"+$%/a#$on d"$n$n+ 8ha# ac#$&$#$"% and #ran%ac#$on%%ha// 6" con%$d"r"d Hco"rc$a/H and a% con%#$#-#$n+ ac#% :-r"+"%#$on$%, 8" ha&" #o co" o-# 8$#h o-r o8n +-$d"/$n"%, #"n#a#$&"#h" a 6".

C"r#a$n/, #h" "r" "n#"r$n+ $n#o a con#rac# 6 a or"$+n %#a#" 8$#h a

!r$&a#" !ar# canno# 6" #h" -/#$a#" #"%#. S-ch an ac# can on/ 6" #h"%#ar# o #h" $n-$r. Th" /o+$ca/ -"%#$on $% 8h"#h"r #h" or"$+n %#a#" $%"n+a+"d $n #h" ac#$&$# $n #h" r"+-/ar co-r%" o 6-%$n"%%. I #h"or"$+n %#a#" $% no# "n+a+"d r"+-/ar/ $n a 6-%$n"%% or #rad", #h"!ar#$c-/ar ac# or #ran%ac#$on -%# #h"n 6" #"%#"d 6 $#% na#-r". I #h"ac# $% $n !-r%-$# o a %o&"r"$+n ac#$&$#, or an $nc$d"n# #h"r"o, #h"n $#$% an ac# :-r" $!"r$$, "%!"c$a// 8h"n $# $% no# -nd"r#a"n or +a$n or!ro$#.

A% h"/d $n Un$#"d S#a#"% o A"r$ca &. G-$n#o, 2 1972=. A%$n In#"rna#$ona/ Ca#ho/$c M$+ra#$on Co$%%$on and $n Jor/d '"a/#hOr+an$a#$on, 8" a6$d" 6 #h" c"r#$$ca#$on o #h" D"!ar#"n# oFor"$+n Aa$r%.

Ord$nar$/, #h" !roc"d-r" 8o-/d 6" #o r"and #h" ca%" and ord"r #h"#r$a/ co-r# #o cond-c# a h"ar$n+ #o "%#a6/$%h #h" ac#% a//"+"d 6!"#$#$on"r $n $#% o#$on. In &$"8 o %a$d c"r#$$ca#$on, %-ch !roc"d-r"8o-/d ho8"&"r 6" !o$n#/"%% and -nd-/ c$rc-$#o-%


11/101

In&"%#"n#% 95, 919 19>=. Onc" #h" *h$/$!!$n" +o&"rn"n#d"c$d"% #o "%!o-%" #h" c/a$, #h" /a##"r c"a%"% #o 6" a !r$&a#" ca-%".

Accord$n+ #o #h" *"ran"n# Co-r# o In#"rna#$ona/ -%#$c", #h"or"r-nn"r o #h" In#"rna#$ona/ Co-r# o -%#$c"

#a$n+ -! #h" ca%" o on" o $#% %-6:"c#% and 6 r"!or#$n+ #od$!/oa#$c ac#$on or $n#"rna#$ona/ :-d$c$a/ !roc""d$n+% on h$% 6"ha/, aS#a#" $% $n r"a/$# a%%"r#$n+ $#% o8n r$+h#% $#% r$+h# #o "n%-r", $n #h"

!"r%on o $#% %-6:"c#%, r"%!"c# or #h" r-/"% o $n#"rna#$ona/ /a8 . !"r cr$$na/char+", #h" M"TC r"/"a%"d h$ #o #h" c-%#od o #h" S"c-r$# O$c"ro AD. Th" n"B# da, #h" M"TC :-d+" r"c"$&"d an Ho$c" o!ro#oco/H ro #h" D"!ar#"n# o For"$+n Aa$r% 5 o #h" A+r"""n# 6"#8""n #h" AD and #h" *h$/$!!$n"Go&"rn"n# r"+ard$n+ #h" '"ad-ar#"r% o #h" AD


12/101

:-r$%d$c#$on nor do"% $# $!a$r #h" &a/$d$# o #h" $nora#$on oro#h"r8$%" r"nd"r $# d""c#$&".9

J'EREFORE, #h" !"#$#$on $% DENIED.

SO ORDERED.1P8!h$1.nQ#

G.R. No. ;773 F"6r-ar 1>, 1992

SOUT'EAST ASIAN FIS'ERIES DE4E(O*MENT CENTER?AUACU(TURE DE*ARTMENT


13/101

*"#$#$on"r So-#h"a%# A%$an F$%h"r$"% D"&"/o!"n# C"n#"r?A-ac-/#-r" D"!ar#"n# SEAFDEC on -/ 3?7, 1973 $n -a/a (-!-r, Ma/a%$a a% on" o#h" !r$nc$!a/ d"!ar#"n#% o SEAFDEC

S#a#" 8h"r" #h" ar" %$#-a#"d. A% %-ch, accord$n+ #o on" /"ad$n+a-#hor$# H#h" -%# 6" d"""d #o !o%%"%% a %!"c$"% o $n#"rna#$ona/!"r%ona/$# o #h"$r o8n.H


14/101

"Bc"!#$on, 6-# ra#h"r #h" +"n"ra/ r-/", &$r#-a// o&"r#hro8$n+a/#o+"#h"r #h" #$"?honor"d !r$nc$!/" #ha# #h" $%%-" o :-r$%d$c#$on $%no# /o%# 6 8a$&"r or 6 "%#o!!"/. ;3 Ma 22, 1995

ERNESTO (. CA((ADO, !"#$#$on"r,

&%.INTERNATIONA( RICE RESEARC' INSTITUTE, r"%!ond"n#.

ROMERO, .

D$d #h" In#"rna#$ona/ R$c" R"%"arch In%#$#-#"


15/101

%"" r"dr"%%. '" -r#h"r %#a#"% #ha# %$nc" #h" $n&"%#$+a#$on o h$%ca%" 8a% no# r""rr"d #o #h" Co-nc$/ o IRRI E!/o""% andMana+""n#


16/101

8a$&"r 6 #h" D$r"c#or?G"n"ra/. R"%!ond"n# Co$%%$on ha% -o#"dIRRI@% r"!/ #h-%

Th" 19;3 . . . $% an $n#"rna/ "o addr"%%"d #o *"r%onn"/ and ("+a/O$c" and 8a% $%%-"d or $#% +-$danc" $n hand/$n+ #ho%" ca%"% 8h"r"IRRI o!#% #o 8a$&" $#% $-n$#. I# $% no# a d"c/ara#$on o 8a$&"r or a//ca%"%. Th$% $% a!!ar"n# ro #h" -%" o #h" !"r$%%$&" #"r HaHra#h"r #han #h" anda#or #"r H%ha//H $n #h" /a%# !ara+ra!h o #h""o. C"r#a$n/ #h" "o canno# 6" con%$d"r"d a% #h" "B!r"%%

8a$&"r 6 #h" D$r"c#or G"n"ra/ a% con#"!/a#"d 6 *.D. 12,"%!"c$a// %$nc" #h" "o 8a% $%%-"d 6 a or"r D$r"c#or?G"n"ra/.A# #h" &"r /"a%#, #h" "B!r"%% d"c/ara#$on o #h" $nc-6"n# D$r"c#or?+"n"ra/ %-!"r%"d"% #h" 19;3 "o and %ho-/d 6" accord"d +r"a#"rr"%!"c#. I# 8o-/d 6" "-a// $!or#an# #o !o$n# o-# #ha# #h" *"r%onn"/and ("+a/ O$c" ha% 6""n non?"B$%#"n# %$nc" 19;; a% a r"%-/# oa:or r"or+an$a#$on o #h" IRRI. Ca%"% o IRRI 6"or" DO(E ar"hand/"d 6 an "B#"rna/ ("+a/ Co-n%"/ a% $n #h$% !ar#$c-/arca%". 1;


17/101

H2. To !a co!/a$nan# -// 6ac8a+"% ro D"c"6"r 1,1992 #o S"!#"6"r 15, 1993 $n #h" ao-n# o *>2,75. ,5.B 9 on#h%=

H3. And #o !a co!/a$nan#% o#h"r 6"n"$#% and 8$#ho-# /o%% o%"n$or$# r$+h#% and o#h"r !r$&$/"+"% and 6"n"$#% d-" a r"+-/ar"!/o"" o A%$an D"&"/o!"n# an ro #h" #$" h" 8a%#"r$na#"d on D"c"6"r 31, 1992

H>. To !a 1 a##orn"@% ""% o #h" #o#a/ "n#$#/""n#%.H1

Th" AD d$d no# a!!"a/ #h" d"c$%$on. In%#"ad, on 3 No&"6"r1993, #h" DFA r""rr"d #h" a##"r #o #h" Na#$ona/ (a6or R"/a#$on%Co$%%$on

D$%%a#$%$"d, #h" DFA /od+"d #h" $n%#an# !"#$#$on or c"r#$orar$. In #h$%Co-r#@% r"%o/-#$on o 31 an-ar 199>, r"%!ond"n#% 8"r" r"-$r"d #oco"n#. *"#$#$on"r 8a% /a#"r con%#ra$n"d #o a" an a!!/$ca#$on ora r"%#ra$n$n+ ord"r andor 8r$# o !r"/$$nar $n:-nc#$on o//o8$n+ #h"$%%-anc", on 1 March 199>, 6 #h" (a6or Ar6$#"r o a 8r$# o"B"c-#$on. In a r"%o/-#$on, da#"d 7 A!r$/ 199>, #h" Co-r# $%%-"d #h"#"!orar r"%#ra$n$n+ ord"r !ra"d or.

Th" O$c" o #h" So/$c$#or G"n"ra/


18/101

Th" a6o&" %#$!-/a#$on% o 6o#h #h" Char#"r and '"ad-ar#"r%A+r"""n# %ho-/d 6" a6/", na 8"// "no-+h, #o "%#a6/$%h #ha#, "Bc"!#$n #h" %!"c$$"d ca%"% o 6orro8$n+ and +-aran#"" o!"ra#$on%, a% 8"//a% #h" !-rcha%", %a/" and -nd"r8r$#$n+ o %"c-r$#$"%, #h" AD "n:o%$-n$# ro /"+a/ !roc"%% o "&"r or. Th" an% o$c"r%, on#h"$r !ar#, "n:o $-n$# $n r"%!"c# o a// ac#% !"ror"d 6 #h" $n#h"$r o$c$a/ ca!ac$#. Th" Char#"r and #h" '"ad-ar#"r% A+r"""n#+ran#$n+ #h"%" $-n$#$"% and !r$&$/"+"% ar" #r"a# co&"nan#% and

co$#"n#% &o/-n#ar$/ a%%-"d 6 #h" *h$/$!!$n" +o&"rn"n#8h$ch -%# 6" r"%!"c#"d.

In Jor/d '"a/#h Or+an$a#$on &%. A-$no,78" ha&" d"c/ar"d

I# $% a r"co+n$"d !r$nc$!/" o $n#"rna#$ona/ /a8 and -nd"r o-r %%#"o %"!ara#$on o !o8"r% #ha# d$!/oa#$c $-n$# $% "%%"n#$a// a!o/$#$ca/ -"%#$on and co-r#% %ho-/d r"-%" #o /oo 6"ond ad"#"r$na#$on 6 #h" "B"c-#$&" 6ranch o #h" +o&"rn"n#, and 8h"r"#h" !/"a o d$!/oa#$c $-n$# $% r"co+n$"d and a$r"d 6 #h""B"c-#$&" 6ranch o #h" +o&"rn"n# B B B $# $% #h"n #h" d-# o #h"co-r#% #o acc"!# #h" c/a$ o $-n$# -!on a!!ro!r$a#" %-++"%#$on6 #h" !r$nc$!a/ /a8 o$c"r o #h" +o&"rn"n#, B B B or o#h"r o$c"rac#$n+ -nd"r h$% d$r"c#$on. '"nc", $n adh"r"nc" #o #h" %"##/"d!r$nc$!/" #ha# co-r#% a no# %o "B"rc$%" #h"$r :-r$%d$c#$on B B B a% #o"6arra%% #h" "B"c-#$&" ar o #h" +o&"rn"n# $n cond-c#$n+or"$+n r"/a#$on%, $# $% acc"!#"d doc#r$n" #ha# $n %-ch ca%"% #h"

:-d$c$a/ d"!ar#"n# o +o&"rn"n# o//o8% #h" ac#$on o #h" !o/$#$ca/6ranch and 8$// no# "6arra%% #h" /a##"r 6 a%%-$n+ an an#a+on$%#$c

:-r$%d$c#$on.@H;

To #h" %a" ""c# $% #h" d"c$%$on $n In#"rna#$ona/ Ca#ho/$c M$+ra#$onCo$%%$on &%. Ca//":a,98h$ch ha% %$$/ar/ d"""d #h"M"oranda o #h" ("+a/ Ad&$%"r o #h" D"!ar#"n# o For"$+n Aa$r%

#o 6" Ha ca#"+or$ca/ r"co+n$#$on 6 #h" EB"c-#$&" ranch oGo&"rn"n# #ha# ICMC B B B "n:o


19/101

HTh" D"!ar#"n# o For"$+n Aa$r%, $n #-rn, $nor"d (a6or Ar6$#"rN$"&"% 4. d" Ca%#ro o #h$% ac# 6 /"##"r da#"d March 22, co!$"d #oo-.

HD"%!$#" #h$%, #h" /a6or ar6$#"r $n -"%#$on !"r%$%#"d #o %"nd%-on%, #h" /a#"%# da#"d Ma >, h"r"8$#h a##ach"d, r"+ard$n+ #h"Ma+na$ ca%".

HTh" S-!r"" Co-r# ha% /on+ %"##/"d #h" a##"r o d$!/oa#$c

$-n$#$"%. In J'O &%. A-$no, SCRA >;, $# r-/"d #ha# co-r#% %ho-/dr"%!"c# d$!/oa#$c $-n$#$"% o or"$+n o$c$a/% r"co+n$"d 6 #h"*h$/$!!$n" +o&"rn"n#. S-ch d"c$%$on 6 #h" S-!r"" Co-r# or%!ar# o #h" /a8 o #h" /and.

H*"rha!% o- %ho-/d !o$n# o-# #o (a6or Ar6$#"r N$"&"% 4. d" Ca%#ro#ha# $+noranc" o #h" /a8 $% a +ro-nd or d$%$%%a/.

H4"r #r-/ o-r%,


20/101

HIn #h" ca%" a# 6"nch, #h" D"!ar#"n# o For"$+n Aa$r%, #hro-+h #h"O$c" o ("+a/ Aa$r% o&"d 8$#h #h$% Co-r# #o 6" a//o8"d #o$n#"r&"n" on #h" %$d" o !"#$#$on"r. Th" Co-r# a//o8"d #h" %a$dD"!ar#"n# #o $/" $#% "orand- $n %-!!or# o !"#$#$on"r@% c/a$ o%o&"r"$+n $-n$#.

HIn %o" ca%"%, #h" d""n%" o %o&"r"$+n $-n$# 8a% %-6$##"dd$r"c#/ #o #h" /oca/ co-r#% 6 #h" r"%!ond"n#% #hro-+h #h"$r !r$&a#"co-n%"/% 5 M$-$a6a% &%.

*h$/$!!$n"?R--% Coand, ; *h$/. 22 19>; Un$#"d S#a#"% oA"r$ca &%. G-$n#o, 1;2 SCRA >> 199 and co!an$on ca%"%=. Inca%"% 8h"r" #h" or"$+n %#a#"% 6!a%% #h" For"$+n O$c", #h" co-r#%can $n-$r" $n#o #h" ac#% and a" #h"$r o8n d"#"r$na#$on a% #o #h"na#-r" o #h" ac#% and #ran%ac#$on% $n&o/&"d.H2

R"/a#$&" #o #h" !ro!r$"# o #h" "B#raord$nar r""d o c"r#$orar$, #h"Co-r# ha%, -nd"r %!"c$a/ c$rc-%#anc"%, %o a//o8"d and "n#"r#a$n"d%-ch a !"#$#$on 8h"n , 1975 -/ 13, 197 A-+-%# 23,197 F"6r-ar23, 1977 March 1, 1977 -/ 2, 1979 S"!#"6"r 7, 1979No&"6"r 7, 1979 and D"c"6"r 3, 1979 and #h" d"c$%$on da#"dOc#o6"r 1, 1979 ord"r$n+ d""ndan#% M-n$c$!a/$# o San F"rnando,(a Un$on and A/r"do $%/$+ #o !a, :o$n#/ and %"&"ra//, #h" !/a$n#$%

or -n"ra/ "B!"n%"%, ac#-a/ daa+"% con%$%#$n+ o #h" /o%% o"arn$n+ ca!ac$# o #h" d"c"a%"d, a##orn"@% ""% and co%#% o %-$#and d$%$%%$n+ #h" co!/a$n# a+a$n%# #h" E%#a#" o Macar$o N$"&"ra%and "rnardo a/a+o#.

Th" an#"c"d"n# ac#% ar" a% o//o8%

*"#$#$on"r M-n$c$!a/$# o San F"rnando, (a Un$on $% a -n$c$!a/cor!ora#$on "B$%#$n+ -nd"r and $n accordanc" 8$#h #h" /a8% o #h"

R"!-6/$c o #h" *h$/$!!$n"%. R"%!ond"n# 'onora6/" -d+" Ro"o N.F$r" $% $!/"ad"d $n h$% o$c$a/ ca!ac$# a% #h" !r"%$d$n+ :-d+" o#h" Co-r# o F$r%# In%#anc" o (a Un$on, ranch I4, a-an+, (a Un$onJh$/" !r$&a#" r"%!ond"n#% -ana R$ando?an$a, (a-r"anoan$a, r., Sor Mar$"##a an$a, Mon#ano an$a, Or:a an$a and(d$a R. an$a ar" h"$r% o #h" d"c"a%"d (a-r"ano an$a Sr. and!/a$n#$% $n C$&$/ Ca%" No. 17?+ 6"or" #h" aor"%a$d co-r#.

A# a6o-# 7 o@c/oc $n #h" orn$n+ o D"c"6"r 1, 195, a co//$%$onocc-rr"d $n&o/&$n+ a !a%%"n+"r :""!n" dr$&"n 6 "rnardo a/a+o#and o8n"d 6 #h" E%#a#" o Macar$o N$"&"ra%, a +ra&"/ and %and#r-c dr$&"n 6 o%" Manand"+ and o8n"d 6 Tan-$/$no 4"/a%-"

and a d-! #r-c o #h" M-n$c$!a/$# o San F"rnando, (a Un$on anddr$&"n 6 A/r"do $%/$+. D-" #o #h" $!ac#, %"&"ra/ !a%%"n+"r% o #h"

:""!n" $nc/-d$n+ (a-r"ano an$a Sr. d$"d a% a r"%-/# o #h" $n:-r$"%#h" %-%#a$n"d and o-r = o#h"r% %-"r"d &ar$n+ d"+r""% o!h%$ca/ $n:-r$"%.

On D"c"6"r 11, 19, #h" !r$&a#" r"%!ond"n#% $n%#$#-#"d aco!/$an# or daa+"% a+a$n%# #h" E%#a#" o Macar$o N$"&"ra% and"rnardo a/a+o#, o8n"r and dr$&"r, r"%!"c#$&"/, o #h" !a%%"n+"r

:""!n", 8h$ch 8a% doc"#"d C$&$/ Ca%" No. 21;3 $n #h" Co-r# oF$r%# In%#anc" o (a Un$on, ranch I, San F"rnando, (a Un$on.'o8"&"r, #h" aor"%a$d d""ndan#% $/"d a Th$rd *ar# Co!/a$n#a+a$n%# #h" !"#$#$on"r and #h" dr$&"r o a d-! #r-c o !"#$#$on"r.

Th"r"a#"r, #h" ca%" 8a% %-6%"-"n#/ #ran%"rr"d #o ranch I4,!r"%$d"d o&"r 6 r"%!ond"n# :-d+" and 8a% %-6%"-"n#/ doc"#"da% C$&$/ Ca%" No. 17?+. &$r#-" o a co-r# ord"r da#"d Ma 7,1975, #h" !r$&a#" r"%!ond"n#% a"nd"d #h" co!/a$n# 8h"r"$n #h"!"#$#$on"r and $#% r"+-/ar "!/o"", A/r"do $%/$+ 8"r" $!/"ad"d or#h" $r%# #$" a% d""ndan#%. *"#$#$on"r $/"d $#% an%8"r and ra$%"da$ra#$&" d""n%"% %-ch a% /ac o ca-%" o ac#$on, non?%-a6$/$# o#h" S#a#", !r"%cr$!#$on o ca-%" o ac#$on and #h" n"+/$+"nc" o #h"o8n"r and dr$&"r o #h" !a%%"n+"r :""!n" a% #h" !roB$a#" ca-%" o

#h" co//$%$on.In #h" co-r%" o #h" !roc""d$n+%, #h" r"%!ond"n# :-d+" $%%-"d #h"o//o8$n+ -"%#$on"d ord"r%, #o 8$#

, 1975 d$%$%%$n+ #h" cro%%?c/a$a+a$n%# "rnardo a/a+o#


21/101

,7>>.2> a% #h" /o%# "B!"c#"d"arn$n+% o #h" /a#" (a-r"ano an$a Sr., *3,. a% ora/daa+"%, and *2,5. a% a##orn"@% ""%. Co%#% a+a$n%# %a$dd""ndan#%.

Th" Co!/a$n# $% d$%$%%"d a% #o d""ndan#% E%#a#" o Macar$o

N$"&"ra% and "rnardo a/a+o#.

SO ORDERED. , 5>.=

Con%"n# $% $!/$"d 8h"n #h" +o&"rn"n# "n#"r% $n#o 6-%$n"%%con#rac#%, #h"r"6 d"%c"nd$n+ #o #h" /"&"/ o #h" o#h"r con#rac#$n+!ar#, and a/%o 8h"n #h" S#a#" $ /"% a co!/a$n#, #h-% o!"n$n+ $#%"/ #oa co-n#"rc/a$.


22/101

%#a#" $% %-a6/" do"% no# n"c"%%ar$/ "an #ha# $# $% /$a6/" on #h"o#h"r hand, $# can n"&"r 6" h"/d /$a6/" $ $# do"% no# $r%# con%"n# #o 6"%-"d. ($a6$/$# $% no# conc"d"d 6 #h" "r" ac# #ha# #h" %#a#" ha%a//o8"d $#%"/ #o 6" %-"d. Jh"n #h" %#a#" do"% 8a$&" $#% %o&"r"$+n$-n$#, $# $% on/ +$&$n+ #h" !/a$n#$ #h" chanc" #o !ro&", $ $# can,#ha# #h" d""ndan# $% /$a6/".H .=

In #h" ca%" a# 6ar, #h" dr$&"r o #h" d-! #r-c o #h" -n$c$!a/$#$n%$%#% #ha# Hh" 8a% on h$% 8a #o #h" Na+-$/$an r$&"r #o +"# a /oad o%and and +ra&"/ or #h" r"!a$r o San F"rnando@% -n$c$!a/ %#r""#%.H22> an-ar 21, 1993

'ON. RAMON . FARO(AN, R., $n h$% ca!ac$# a% Co$%%$on"r oC-%#o%, !"#$#$on"r,&%.COURT OF TAX A**EA(S and AGONG U'A)TRADING, r"%!ond"n#%.

Th" So/$c$#or G"n"ra/ or !"#$#$on"r.

or+" G. Maca!a+a/ co-n%"/ or r"%!ond"n#.

A-r"a Ara+on?Ca%$ano or a+on+ -ha Trad$n+.

ROMERO, .

Th$% $% a !"#$#$on or r"&$"8 on c"r#$orar$ 8h$ch %""% #o ann-/ and %"#a%$d" #h" d"c$%$on o #h" Co-r# o TaB A!!"a/% da#"d D"c"6"r 27,197>


23/101

and #aB"% d-" $n #h" ao-n# o *11,35. 8h$ch 8a% !a$d #hro-+h#h" an o A%$a -nd"r O$c$a/ R"c"$!# No. >27;7 da#"d F"6r-ar 1,1972. Th"r"a#"r, #h" c-%#o% a!!ra$%"r ad" a r"#-rn o d-#.

Ac#$n+ on #h" %#r"n+#h o an $nora#$on #ha# #h" %h$!"n# con%$%#"do Ho%-$#o n"#H ad" o n/on d-#$a6/" -nd"r Tar$ '"ad$n+ No.2.2 o #h" Tar$ and C-%#o% Cod", #h" O$c" o #h" Co//"c#or oC-%#o% ord"r"d ar"?"Ba$na#$on o #h" %h$!"n#. A r"!or# on #h" r"?"Ba$na#$on

r"&"a/"d #ha# #h" %h$!"n# con%$%#"d o ; 6a/"% o %cr""n n"#, "ach6a/" con#a$n$n+ 2 ro//% or a #o#a/ o 1, ro//%. 3 R"?a!!ra$%"d, #h"%h$!"n# 8a% &a/-"d a# V37,5. or V1.15 !"r ard $n%#"ad oV.75 !"r ard a% !r"&$o-%/ d"c/ar"d. F-r#h"ror", #h" Co//"c#or oC-%#o% d"#"r$n"d #h" %-6:"c# %h$!"n# a% ad" o %n#h"#$c= and 3,5 ard% ac#-a// /o%# 6!r$&a#" r"%!ond"n#.

S"c#$on 253, !ara+ra!h , %-6!ara+ra!h%


24/101

co$##"d d$r"c#/ 6 #h" o8n"r, $!or#"r, "B!or#"r or con%$+n"" a%%"# or#h $n S"c#$on 253, !ara+ra!h , %-6!ara+ra!h

39.2 *o/"r$%a#$on and co!o/"r$%a#$on !rod-c#% !ro&$d"%

51.>. Jo&"n a6r$c% o an?ad" $6"r%


25/101

-nd"r Tar$ '"ad$n+ No. 39.2 $n%#"ad o %n#h"#$c , #o 8$#

Jh$/" $# $% #r-" #ha# #h" $nd$n+ and conc/-%$on o #h" Co//"c#or oC-%#o% 8$#h r"%!"c# #o c/a%%$$ca#$on o $!or#"d ar#$c/"% ar"!r"%-!#$&"/ corr"c#, "# a% a##"r% #ha# r"-$r" /a6ora#or #"%#% orana/%$% #o arr$&" a# #h" !ro!"r c/a%%$$ca#$on, #h" o!$n$on o #h"Co//"c#or -%# $"/d #o #h" $nd$n+ o an "B!"r# 8ho%" o!$n$on $%6a%"d on %-ch /a6ora#or #"%# or ana/%$% -n/"%% %-ch /a6ora#or

ana/%$% $% %ho8n #o 6" "rron"o-%. And #h$% $% "%!"c$a// %o $n #h$%ca%" 8h"r" #h" #"%# and ana/%$% 8"r" ad" $n #h" /a6ora#or o #h"-r"a- o C-%#o% $#%"/. I# ha% no# 6""n %ho8n 8h %-ch /a6ora#or$nd$n+ 8a% d$%r"+ard"d. Th"r" $% no c/a$ or !r"#"n%" #ha# an "rror8a% co$##"d 6 #h" /a6ora#or #"chn$c$an. S$+n$$can#/, #h" %a$d$nd$n+ o #h" Ch$", C-%#o% (a6ora#or $nd% %-!!or# $n #h"HRE*ORT OF ANA()SISH %-6$##"d 6 #h" Ada%on Un$&"r%$#T"%#$n+ (a6ora#or$"%, da#"d S"!#"6"r 21, 19. 2;

On #h" #h$rd $%%-", 8" o!$n" #ha# #h" -r"a- o C-%#o% canno# 6"h"/d /$a6/" or ac#-a/ daa+"% #ha# #h" !r$&a#" r"%!ond"n# %-%#a$n"d8$#h r"+ard #o $#% +ood%. O#h"r8$%", #o !"r$# !r$&a#" r"%!ond"n#@%c/a$ #o !ro%!"r 8o-/d &$o/a#" #h" doc#r$n" o %o&"r"$+n $-n$#.S$nc" $# d"and% #ha# #h" Co$%%$on"r o C-%#o% 6" ord"r"d #o!a or ac#-a/ daa+"% $# %-%#a$n"d, or 8h$ch -/#$a#"/ /$a6$/$# 8$//a// on #h" +o&"rn"n#, $# $% o6&$o-% #ha# #h$% ca%" ha% 6""ncon&"r#"d #"chn$ca// $n#o a %-$# a+a$n%# #h" %#a#". 29

On #h$% !o$n#, #h" !o/$#$ca/ doc#r$n" #ha# H#h" %#a#" a no# 6" %-"d8$#ho-# $#% con%"n#,H ca#"+or$ca// a!!/$"%. 3 A% an -n$ncor!ora#"d+o&"rn"n# a+"nc 8$#ho-# an %"!ara#" :-r$d$ca/ !"r%ona/$# o $#%o8n, #h" -r"a- o C-%#o% "n:o% $-n$# ro %-$#. A/on+ 8$#h#h" -r"a- o In#"rna/ R"&"n-", $# $% $n&"%#"d 8$#h an $nh"r"n# !o8"r

o %o&"r"$+n#, na"/, #aBa#$on. A% an a+"nc, #h" -r"a- oC-%#o% !"ror% #h" +o&"rn"n#a/ -nc#$on o co//"c#$n+ r"&"n-"%8h$ch $% d"$n$#"/ no# a !ro!r$"#ar -nc#$on. Th-%, !r$&a#"r"%!ond"n#@% c/a$ or daa+"% a+a$n%# #h" Co$%%$on"r oC-%#o% -%# a$/.

J'EREFORE, #h" d"c$%$on o #h" r"%!ond"n# Co-r# o TaB A!!"a/%$% AFFIRMED. Th" Co//"c#or o C-%#o% $% d$r"c#"d #o "B!"d$#$o-%/r"?co!-#" #h" c-%#o% d-#$"% a!!/$n+ Tar$ '"ad$n+ 39.2 a# #h"ra#" o 35 ad &a/or" on #h" 13, $/o+ra% o !o/"#h/"n"!/a%#$c $!or#"d 6 !r$&a#" r"%!ond"n#.

SO ORDERED.G.R. No. 97;;2. A-+-%# 2;, 199

T'E CIT) OF ANGE(ES, 'on. ANTONIO AAD SANTOS, $n h$%ca!ac$# a% MA)OR o An+"/"% C$#, and #h" SANGGUNIANG*AN(UNGSOD OF T'E CIT) OF ANGE(ES, !"#$#$on"r%, &%.COURT OF A**EA(S and TIMOG SI(ANGAN DE4E(O*MENTCOR*ORATION, r"%!ond"n#%.

D E C I S I O N

*ANGANIAN, .

In r"%o/&$n+ #h$% !"#$#$on, #h" Co-r# addr"%%"d #h" -"%#$on% o8h"#h"r a donor o o!"n %!ac"% $n a r"%$d"n#$a/ %-6d$&$%$on can&a/$d/ $!o%" cond$#$on% on #h" %a$d dona#$on 8h"#h"r #h" c$#+o&"rn"n# a% don"" can 6-$/d and o!"ra#" a dr-+ r"ha6$/$#a#$onc"n#"r on #h" dona#"d /and $n#"nd"d or o!"n %!ac" and 8h"#h"r #h"%a$d dona#$on a 6" &a/$d/ r"%c$nd"d 6 #h" donor.

*"#$#$on"r% c/a$ #h" ha&" #h" r$+h# #o con%#r-c# and o!"ra#" a dr-+r"ha6$/$#a#$on c"n#"r on #h" dona#"d /and $n -"%#$on, con#rar #o #h"!ro&$%$on% %#a#"d $n #h" a"nd"d D""d o Dona#$on.

On #h" o#h"r hand, !r$&a#" r"%!ond"n#, o8n"rd"&"/o!"r o #h" T$o+*ar r"%$d"n#$a/ %-6d$&$%$on $n An+"/"% C$#, o!!o%"d #h" con%#r-c#$onand no8, #h" o!"ra#$on o #h" %a$d c"n#"r on #h" dona#"d /and, 8h$ch$% /oca#"d 8$#h$n %a$d r"%$d"n#$a/ %-6d$&$%$on.

"or" -% $% a !"#$#$on or r"&$"8 on c"r#$orar$ a%%a$/$n+ #h"D"c$%$on1o #h" Co-r# o A!!"a/%2da#"d Oc#o6"r 31, 199, 8h$cha$r"d #h" d"c$%$on3o #h" R"+$ona/ Tr$a/ Co-r# o An+"/"% C$#

ranch 5,>da#"d F"6r-ar 15, 19;9.

Th" An#"c"d"n#%

In a D""d o Dona#$on da#"d March 9, 19;>, %-6%"-"n#/%-!"r%"d"d 6 a D""d o Dona#$on da#"d S"!#"6"r 27, 19;>, 8h$ch$n #-rn 8a% %-!"r%"d"d 6 an A"nd"d D""d o Dona#$on da#"dNo&"6"r 2, 19;>, !r$&a#" r"%!ond"n# dona#"d #o #h" C$# oAn+"/"%, 51 !arc"/% o /and %$#-a#"d $n arr$o *a!an+, C$# oAn+"/"%, 8$#h an a++r"+a#" ar"a o 5,7 %-ar" "#"r%, or" or/"%%, !ar# o a 6$++"r ar"a a/%o 6"/on+$n+ #o !r$&a#" r"%!ond"n#. Th"a"nd"d d""d5!ro&$d"d, aon+ o#h"r%, #ha#

2. Th" !ro!"r#$"% dona#"d %ha// 6" d"&o#"d and -#$/ $"d %o/"/ or #h"%$#" o #h" An+"/"% C$# S!or#% C"n#"r . Th" con%#r-c#$on o #h" S!or#% C"n#"r %ha// co"nc" 8$#h$n a!"r$od o on"


26/101

!r"&$o-%/ r"%"r&"d or d"%$+na#"d, $nc/-d$n+ (o# 1 and (o# 2A o/oc 72 and #h" 8ho/" /oc 29 ar" d$%!"n%"d 8$#h, and r"nd"r"dr"", a% o!"n %!ac"%, and #h" DONEE h"r"6 a+r""% #o "B"c-#" andd"/$&"r a// n"c"%%ar con%"n#%, a!!ro&a/%, "ndor%""n#%, anda-#hor$a#$on% #o ""c# #h" or"+o$n+.

7. Th" !ro!"r#$"% dona#"d ar" d"&o#"d and d"%cr$6"d a% o!"n%!ac"% o #h" DONOR% %-6d$&$%$on, and #o #h$% ""c#, #h" DONEE,-!on acc"!#anc" o #h$% dona#$on, r"/"a%"% #h" DONOR andor

a%%-"% an and a// o6/$+a#$on% and / $a6$/$#$"% a!!"r#a$n$n+ #o #h"!ro!"r#$"% dona#"d.

;. An %-6%#an#$a/ 6r"ach o #h" or"+o$n+ !ro&$%o% %ha// "n#$#/" #h"DONOR #o r"&o" or r"%c$nd #h$% D""d o Dona#$on, and $n %-ch"&"n#-a/$#, #h" DONEE a+r""% #o &aca#" and r"#-rn #h" !r"$%"%,#o+"#h"r 8$#h a// $!ro&""n#%, #o #h" DONOR !"ac"-// 8$#ho-#n"c"%%$# o :-d$c$a/ ac#$on.

On -/ 19, 19;;, !"#$#$on"r% %#ar#"d #h" con%#r-c#$on o a dr-+r"ha6$/$#a#$on c"n#"r on a !or#$on o #h" dona#"d /and. U!on /"arn$n+#h"r"o, !r$&a#" r"%!ond"n# !ro#"%#"d %-ch ac#$on or 6"$n+ &$o/a#$&"

o #h" #"r% and cond$#$on% o #h" a"nd"d d""d and !r":-d$c$a/ #o$#% $n#"r"%# and #o #ho%" o $#% c/$"n#% and r"%$d"n#%. *r$&a#"r"%!ond"n# a/%o o"r"d ano#h"r %$#" or #h" r"ha6$/$#a#$onc"n#"r. 'o8"&"r, !"#$#$on"r% $+nor"d #h" !ro#"%#, a$n#a$n$n+ #ha# #h"con%#r-c#$on 8a% no# &$o/a#$&" o #h" #"r% o #h" dona#$on. Th"a/#"rna#$&" %$#" 8a% r":"c#"d 6"ca-%", accord$n+ #o !"#$#$on"r%, #h"%$#" 8a% #oo $%o/a#"d and had no "/"c#r$c and 8a#"r ac$/$#$"%.

On A-+-%# ;, 19;;, !r$&a#" r"%!ond"n# $/"d a co!/a$n# 8$#h #h"R"+$ona/ Tr$a/ Co-r#, ranch 5, $n An+"/"% C$# a+a$n%# #h"!"#$#$on"r%, a//"+$n+ 6r"ach o #h" cond$#$on% $!o%"d $n #h"a"nd"d d""d o dona#$on and %""$n+ #h" r"&oca#$on o #h"dona#$on and daa+"%, 8$#h !r"/$$nar $n:-nc#$on andor #"!orarr"%#ra$n$n+ ord"r #o ha/# #h" con%#r-c#$on o #h" %a$d c"n#"r.

On A-+-%# 1, 19;;, #h" #r$a/ co-r# $%%-"d a #"!orar r"%#ra$n$n+ord"r #o "n:o$n #h" !"#$#$on"r% ro -r#h"r !roc""d$n+ 8$#h #h"con%#r-c#$on o #h" c"n#"r, 8h$ch a# #ha# #$" 8a% a/r"ad >co!/"#".

'o8"&"r, #h" #r$a/ co-r# d"n$"d #h" !ra"r or !r"/$$nar $n:-nc#$on6a%"d on #h" !roh$6$#$on $n *r"%$d"n#$a/ D"cr"" No. 1;1;.

In #h"$r An%8"r 8$#h co-n#"rc/a$, !"#$#$on"r% ad$##"d #h"

co"nc""n# o #h" con%#r-c#$on 6-# a//"+"d $n#"r a/$a #ha# #h"cond$#$on% $!o%"d $n #h" a"nd"d d""d 8"r" con#rar #o M-n$c$!a/Ord$nanc" No. 1, S"r$"% o 192, o#h"r8$%" no8n a% #h" S-6d$&$%$onOrd$nanc" o #h" M-n$c$!a/$# o An+"/"%.

On Oc#o6"r 15, 19;;, !r$&a#" r"%!ond"n# $/"d a Mo#$on or *ar#$a/S-ar -d+"n# on #h" +ro-nd #ha# #h" a$n d""n%" o #h"!"#$#$on"r% 8a% anchor"d on a !-r" -"%#$on o /a8 and #ha# #h"$r/"+a/ !o%$#$on 8a% -n#"na6/".

Th" !"#$#$on"r% o!!o%"d, con#"nd$n+ #ha# #h" had a "r$#or$o-%d""n%" a%


27/101

con%#r-c#$n+ a Dr-+ R"ha6$/$#a#$on C"n#"r or an o#h"r 6-$/d$n+ or$!ro&""n# on #h" Dona#"d (and.


28/101

6. 7 o +ro%% ar"a or "d$-?d"n%$# or "cono$c ho-%$n+ . Th$% D"cr"" %ha// #a" ""c# $"d$a#"/.

*-r%-an# #o #h" 8ord$n+ o S"c. 31 o *.D. 957 a% a6o&" a"nd"d 6#h" aor"-o#"d *.D. No. 121, !r$&a#" r"%!ond"n# $% -nd"r /"+a/o6/$+a#$on #o dona#" #h" o!"n %!ac" "Bc/-%$&"/ a//oca#"d or !ar%,!/a+ro-nd% and r"cr"a#$ona/ -%" #o #h" !"#$#$on"r.

Th$% can 6" c/"ar/ "%#a6/$%h"d 6 r""rr$n+ #o #h" or$+$na/ !ro&$%$on o

S"c. 31 o *.D. 957, 8h$ch r"ad% a% o//o8%

SECTION 31. Dona#$on o road% and o!"n %!ac"% #o /oca/+o&"rn"n#. Th" r"+$%#"r"d o8n"r or d"&"/o!"r o #h" %-6d$&$%$on orcondo$n$- !ro:"c#, -!on co!/"#$on o #h" d"&"/o!"n# o %a$d!ro:"c# a, a# h$% o!#$on, con&" 6 8a o dona#$on #h" road% ando!"n %!ac"% o-nd 8$#h$n #h" !ro:"c# #o #h" c$# or -n$c$!a/$#8h"r"$n #h" !ro:"c# $% /oca#"d. U!on acc"!#anc" o #h" dona#$on 6#h" c$# or -n$c$!a/$# conc"rn"d, no !or#$on o #h" ar"a dona#"d%ha// #h"r"a#"r 6" con&"r#"d #o an o#h"r !-r!o%" or !-r!o%"%-n/"%% a#"r h"ar$n+, #h" !ro!o%"d con&"r%$on $% a!!ro&"d 6 #h"A-#hor$#.


29/101

No !/an or a %-6d$&$%$on %ha// 6" a!!ro&"d 6 #h" (and R"+$%#ra#$onCo$%%$on or an o$c" or a+"nc o #h" +o&"rn"n# -n/"%% a#/"a%# #h$r# !"rc"n#


30/101

F-r#h"ror", #h" ac#-a/ 6ac+ro-nd o #h$% ca%" 8arran#% #ha# #h$%Co-r# r-/" a+a$n%# !"#$#$on"r% on #h$% $%%-". J" a+r"" 8$#h and a$r#h" r"%!ond"n# Co-r#% $nd$n+ #ha# !"#$#$on"r% co$##"d ac#%oc$n+ #h" :-d$c$a/ %%#".1;

B B B Jh"n a 8r$# o !r"/$$nar $n:-nc#$on 8a% %o-+h# or 6 #h"a!!"//"" !r$&a#" r"%!ond"n# #o "n:o$n #h" a!!"//an#% !"#$#$on"r%h"r"$n ro -r#h"r con#$n-$n+ 8$#h #h" con%#r-c#$on o #h" %a$dc"n#"r, #h" /a##"r r"%$%#"d and #oo r"-+" -nd"r #h" !ro&$%$on% o

*r"%$d"n#$a/ D"cr"" No. 1;1; o R-/" 39 o #h" R-/"% o Co-r#, $# $%

!ro&$d"d #ha#

S"c#$on > A :-d+"n# $n an ac#$on or $n:-nc#$on %ha// no# 6" %#a"da#"r $#% r"nd$#$on and 6"or" an a!!"a/ $% #a"n or d-r$n+ #h"!"nd"nc o an a!!"a/.

Accord$n+/, a :-d+"n# r"%#ra$n$n+ a !ar# ro do$n+ a c"r#a$n ac# $%"norc"a6/" and %ha// r"a$n $n -// orc" and ""c# "&"n !"nd$n+a!!"a/. In #h" ca%" a# 6ar, #h" c"a%" and d"%$%# ord"r #h"r"or" %#$//%#and%. A!!"//an#% !"r%$%#"nc" and con#$n-"d con%#r-c#$on and,%-6%"-"n#, o!"ra#$on o #h" Dr-+ R"ha6$/$#a#$on C"n#"r &$o/a#" #h""B!r"%% #"r% o #h" 8r$# o $n:-nc#$on /a8-// $%%-"d 6 #h" /o8"r

co-r#.

Th$% Co-r# $nd% no co+"n# r"a%on #o r"&"r%" #h" a6o&" "n#$on"d$nd$n+% o #h" r"%!ond"n# co-r#. Th" a//"+a#$on o #h" !"#$#$on"r% #ha##h" con%#r-c#$on o #h" c"n#"r 8a% $n$%h"d 6"or" #h" :-d+"n# o #h"#r$a/ co-r# 8a% r"nd"r"d d"%"r&"% %can# con%$d"ra#$on 6"ca-%" $# $%%"/?%"r&$n+ and $% co!/"#"/ -n%-!!or#"d 6 o#h"r "&$d"nc".

Th" ac# r"a$n% #ha# #h" #r$a/ co-r# r"nd"r"d :-d+"n# "n:o$n$n+ #h"con%#r-c#$on o #h" dr-+ r"ha6$/$#a#$on c"n#"r, r"&o$n+ #h" dona#$onand ord"r$n+ #h" r"#-rn o #h" dona#"d /and. In %!$#" o %-ch$n:-nc#$on, !"#$#$on"r% !-6/$c/ /a-n#"d #h"$r d$%r"+ard #h"r"o 8$#h #h"

%-6%"-"n# $na-+-ra#$on o #h" c"n#"r on A-+-%# 15, 19;9. Th"o!"ra#$on o #h" c"n#"r, a#"r $na-+-ra#$on, $% "&"n or" c"n%-ra6/".

F$#h I%%-" R"&oca#$on o a Manda#or Dona#$on "ca-%" o Non?co!/$anc" J$#h an I//"+a/ Cond$#$on

Th" !r$&a#" r"%!ond"n# con#"nd% #ha# #h" 6-$/d$n+ o %a$d dr-+r"ha6$/$#a#$on c"n#"r $% &$o/a#$&" o #h" A"nd"d D""d oDona#$on.Th"r"or", -nd"r Ar#$c/" 7> o #h" N"8 C$&$/ Cod" and

%#$!-/a#$on no. ; o #h" a"nd"d d""d, !r$&a#" r"%!ond"n# $%"!o8"r"d #o r"&o" #h" dona#$on 8h"n #h" don"" ha% a$/"d #oco!/ 8$#h an o #h" cond$#$on% $!o%"d $n #h" d""d.

J" d$%a+r"". Ar#$c/" 1>12 o #h" C$&$ / Cod" 8h$ch !ro&$d"% #ha#

I #h" ac# $n 8h$ch #h" -n/a8-/ or or6$dd"n ca-%" con%$%#% do"% no#con%#$#-#" a cr$$na/ o"n%", #h" o//o8$n+ r-/"% %ha// 6" o6%"r&"d


31/101

!-6/$c doa$n, non?a/$"na6/" and !"ran"n#/ d"&o#"d #o !-6/$c -%"a% %-ch !ar%, !/a+ro-nd% or r"cr"a#$on ar"a%.

R"o&a/D"o/$#$on o Dr-+ R"ha6$/$#a#$on C"n#"r

Ina%-ch a% #h" con%#r-c#$on and o!"ra#$on o #h" dr-+ r"ha6$/$#a#$onc"n#"r ha% 6""n "%#a6/$%h"d #o 6" con#rar #o /a8, #h" %a$d c"n#"r%ho-/d 6" r"o&"d or d"o/$%h"d. A# #h$% :-nc#-r", 8" ha%#"n #o add#ha# #h$% Co-r# $% and ha% a/8a% 6""n o-r?%-ar" 6"h$nd #h"

+o&"rn"n#% "or#% #o "rad$ca#" #h" dr-+ %co-r+" $n #h$% co-n#r. -##h" "nd n"&"r :-%#$$"% #h" "an%, and ho8"&"r /a-da6/" #h" !-r!o%"o #h" con%#r-c#$on $n -"%#$on, #h$% Co-r# canno# and 8$/ / no#co-n#"nanc" an o-#r$+h# and con#$n-$n+ &$o/a#$on o #h" /a8% o #h"/and, "%!"c$a// 8h"n co$##"d 6 !-6/$c o$c$a/%.

In #h"or, #h" co%# o %-ch d"o/$#$on, and #h" r"$6-r%""n# o #h"!-6/$c -nd% "B!"nd"d $n #h" con%#r-c#$on #h"r"o, %ho-/d 6" 6orn"6 #h" o$c$a/% o #h" C$# o An+"/"% 8ho ord"r"d and d$r"c#"d %-chcon%#r-c#$on. Th$% Co-r# ha% #$" and a+a$n r-/"d #ha# !-6/$c o$c$a/%ar" no# $-n" ro daa+"% $n #h"$r !"r%ona/ ca!ac$#$"% ar$%$n+ro ac#% don" $n 6ad a$#h. O#h"r8$%" %#a#"d, a !-6/$c o$c$a/ a 6"

/$a6/" $n h$% !"r%ona/ ca!ac$# or 8ha#"&"r daa+" h" a ha&"ca-%"d 6 h$% ac# don" 8$#h a/$c" and $n 6ad a$#h or 6"ond #h"%co!" o h$% a-#hor$# or :-r$%d$c#$on.2In #h" $n%#an# ca%", #h"!-6/$c o$c$a/% conc"rn"d d"/$6"ra#"/ &$o/a#"d #h" /a8 and !"r%$%#"d$n #h"$r &$o/a#$on%, +o$n+ %o ar a% a##"!#$n+ #o d"c"$&" #h" co-r#% 6#h"$r !r"#"nd"d chan+" o !-r!o%" and -%a+" or #h" c"n#"r, anda$n+ a oc"r o #h" :-d$c$a/ %%#". Ind$%!-#a6/, %a$d !-6/$co$c$a/% ac#"d 6"ond #h" %co!" o #h"$r a-#hor$# and :-r$%d$c#$on and8$#h "&$d"n# 6ad a$#h. 'o8"&"r, a% no#"d 6 #h" #r$a/ co-r#,21#h"!"#$#$on"r% aor and "6"r% o #h" San++-n$an+ *an/-n+%od oAn+"/"% C$# 8"r" %-"d on/ $n #h"$r o$c$a/ ca!ac$#$"%, h"nc", #h"

co-/d no# 6" h"/d !"r%ona// /$a6/" 8$#ho-# $r%# +$&$n+ #h" #h"$r da$n co-r#. *r"&a$/$n+ :-r$%!r-d"nc"22ho/d$n+ #ha# !-6/$c o$c$a/% ar"!"r%ona// /$a6/" or daa+"% ar$%$n+ ro $//"+a/ ac#% don" $n 6ada$#h ar" !r"$%"d on %a$d o$c$a/% ha&$n+ 6""n %-"d 6o#h $n #h"$ro$c$a/ and !"r%ona/ ca!ac$#$"%.

A#"r d-" con%$d"ra#$on o #h" c$rc-%#anc"%, 8" 6"/$"&" #ha# #h"a$r"%# and o%# "-$#a6/" %o/-#$on $% #o ha&" #h" C$# o An+"/"%,don"" o #h" %-6:"c# o!"n %!ac" and, o%#"n%$6/, #h" a$n6"n"$c$ar o #h" con%#r-c#$on and o!"ra#$on o #h" !ro!o%"d dr-+r"ha6$/$#a#$on c"n#"r, -nd"r#a" #h" d"o/$#$on and r"o&a/ o %a$dc"n#"r, and $ "a%$6/", r"co&"r #h" co%# #h"r"o ro #h" c$# o$c$a/%

conc"rn"d.

J'EREFORE, #h" a%%a$/"d D"c$%$on o #h" Co-r# o A!!"a/% $%h"r"6 MODIFIED a% o//o8%


32/101

(EGIS(ATI4E ACT. Ja$&"r o #h" S#a#"W% $-n$# ro %-$#,6"$n+ a d"ro+a#$on o %o&"r"$+n#, 8$// no# 6" /$+h#/ $n"rr"d, 6-# -%#6" con%#r-"d %#r$c#$%%$$ :-r$% ; SCRA >2>=.Th" con%"n# o #h" S#a#" #o 6" %-"d -%# "ana#" ro %#a#-#ora-#hor$#, h"nc", ro a /"+$%/a#$&" ac#, no# ro a "r""orand-. J$#ho-# %-ch con%"n#, #h" #r$a/ co-r# d$d no# ac-$r"

:-r$%d$c#$on o&"r #h" !-6/$c r"%!ond"n#%.

>. ID. ID. REASONS E'IND. Th" %#a#" $-n$# doc#r$n" r"%#%-!on r"a%on% o !-6/$c !o/$c and #h" $ncon&"n$"nc" and dan+"r8h$ch 8o-/d /o8 ro a d$"r"n# r-/". HI# $% o6&$o-% #ha# !-6/$c%"r&$c" 8o-/d 6" h$nd"r"d, and !-6/$c %a"# "ndan+"r"d, $ #h"%-!r"" a-#hor$# co-/d 6" %-6:"c#"d #o %-$#% a# #h" $n%#anc" o "&"rc$#$"n, and, con%"-"n#/, con#ro//"d $n #h" -%" and d$%!o%$#$on o #h""an% r"-$r"d or #h" !ro!"r ad$n$%#ra#$on o #h" +o&"rn"n#H o R.A. No. 5>;7, 6 *D No. 11 "B"!#$n+or+an$a#$on% /$" *AD*AO ro #h" !roh$6$#$on #ha# no !"r%on %ha//or+an$" or ha&" an $n#"r"%# $n or" #han on" a+"nc, d"c/ar$n+*AD*AO a% an $//"+a/ or+an$a#$on "B$%#$n+ $n &$o/a#$on o %a$d!roh$6$#$on, 8$#ho-# #h" $//"+a/ "B"!#$on !ro&$d"d $n *D No. 11d"c/ar$n+ n-// and &o$d S"c#$on 17 o R.A. No. 5>;7 8h$ch !ro&$d"%or #h" $%%-anc" o r-/"% and r"+-/a#$on% $n con%-/#a#$on 8$#h*AD*AO, d"c/ar$n+ n-// and &o$d #h" F"6r-ar 1, 19;2 d$r"c#$&" oCo/. Sa6a% 4. Edada%, $n #h" na" o #h" #h"n *C Ch$", r"-$r$n+ a//!r$&a#" %"c-r$# a+"nc$"%%"c-r$# orc"% %-ch a% 4M*SI #o :o$n*AD*AO a% a !r"r"-$%$#" #o %"c-r"r"n"8 #h"$r /$c"n%"%, d"c/ar$n+

#ha# 4M*SI d$d no# "n+a+" $n c-#?#hroa# co!"#$#$onW $n $#% con#rac#8$#h MJSS, ord"r$n+ d""ndan#% *C Ch$" and *C?SUSIA #o r"n"8#h" /$c"n%" o 4M*SI ord"r$n+ #h" d""ndan#% #o r"ra$n ro -r#h"rhara%%$n+ 4M*SI and ro #hr"a#"n$n+ 4M*SI 8$#h canc"//a#$on% ornon?r"n"8a/ o /$c"n%", 8$#ho-# /"+a/ and :-%#$$a6/" ca-%" ord"r$n+#h" d""ndan#% #o !a #o 4M*SI #h" %- o *1,,. a% ac#-a/and co!"n%a#or daa+"%, *1,,. a% "B"!/ar daa+"%and *2,. a% a##orn"W% ""% and "B!"n%"% o /$#$+a#$on and

+ran#$n+ %-ch -r#h"r or o#h"r r"/$"% #o 4M*SI a% a 6" d"""d/a8-/, "-$#a6/" and :-%#.H

Th" con%#$#-#$ona/$# o #h" o//o8$n+ !ro&$%$on% o R.A. 5>;7. Jho a Or+an$" a S"c-r$# or Ja#chan A+"nc. An F$/$!$no c$#$"n or a cor!ora#$on, !ar#n"r%h$!, or a%%oc$a#$on, 8$#ha $n$- ca!$#a/ o $&" #ho-%and !"%o%, on" h-ndr"d !"r c"n# o8h$ch $% o8n"d and con#ro//"d 6 F$/$!$no c$#$"n% a or+an$" a%"c-r$# or 8a#chan a+"nc *ro&$d"d, Tha# no !"r%on %ha//

or+an$" or ha&" an $n#"r"%# $n, or" #han on" %-ch a+"nc "Bc"!##ho%" 8h$ch ar" a/r"ad "B$%#$n+ a# #h" !ro-/+a#$on o #h$%D"cr"" . . .H


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a# *2,255. 8$#h$n M"#ro Man$/a and *2,215. o-#%$d" o M"#roMan$/a ;7, a% a"nd"d 6 *.D. 191971, $n%oar a% !"#$#$on"r% *C Ch$" and *C?SUSIA ar" conc"rn"d, or /ac o :-r$%d$c#$on. Th" 8r$# o !r"/$$nar$n:-nc#$on $%%-"d on -n" 1, 19;;, $% d$%%o/&"d.H

4M*SI ca" #o -% 8$#h #h$% !"#$#$on or r"&$"8.

Th" !r$ar $%%-" $n #h$% ca%" $% 8h"#h"r or no# 4M*SIW% co!/a$n#a+a$n%# #h" *C Ch$" and *C?SUSIA $% a %-$# a+a$n%# #h" S#a#"8$#ho-# $#% con%"n#.

Th" an%8"r $% "%.

Th" S#a#" a no# 6" %-"d 8$#ho-# $#% con%"n#


34/101

o$c$a/% o #h" %#a#" or ac#% a//"+"d/ !"ror"d 6 #h" $n #h"d$%char+" o #h"$r d-#$"%. Th" r-/" $% #ha# $ #h" :-d+"n# a+a$n%# %-cho$c$a/% 8$// r"-$r" #h" %#a#" $#%"/ #o !"ror an a$ra#$&" ac# #o%a#$% #h" %a", %-ch a% #h" a!!ro!r$a#$on o #h" ao-n# n""d"d #o!a #h" daa+"% a8ard"d a+a$n%# #h", #h" %-$# -%# 6" r"+ard"da% a+a$n%# #h" %#a#" $#%"/ a/#ho-+h $# ha% no# 6""n ora//$!/"ad"d.H

SO ORDERED.

G.R. No. 7>135 Ma 2;, 1992

M. '. J)(IE and CA*T. AMES JI((IAMS, !"#$#$on"r%,&%.AURORA I. RARANG and T'E 'ONORA(E INTERMEDIATEA**E((ATE COURT, r"%!ond"n#%.

GUTIERREK, R., .

Th" !$&o#a/ $%%-" $n #h$% !"#$#$on c"n#"r% on #h" "B#"n# o #h"H$-n$# ro %-$#H o #h" o$c$a/% o a Un$#"d S#a#"% Na&a/ a%"$n%$d" *h$/$!!$n" #"rr$#or.

In F"6r-ar, 197;, !"#$#$on"r M. '. J/$" 8a% #h" a%%$%#an#ad$n$%#ra#$&" o$c"r 8h$/" !"#$#$on"r Ca!#. a"% J$//$a% 8a% #h"coand$n+ o$c"r o #h" U. S. Na&a/ a%" $n S-6$c a, O/on+a!oC$#. *r$&a#" r"%!ond"n# A-rora I. Raran+ 8a% an "!/o"" $n #h"o$c" o #h" *ro&o%# Mar%ha/ a%%$+n"d a% "rchand$%" con#ro/ +-ard

M. '. J/$", $n h$% ca!ac$# a% a%%$%#an# ad$n$%#ra#$&" o$c"r o #h"U.S. Na&a/ S#a#$on %-!"r&$%"d #h" !-6/$ca#$on o #h" H*/an o #h" DaH


35/101

#h" ha&" con$%ca#"d ro a%" *"r%onn"/. Th" o6%"r&a#$on $% "&"nor" a++ra&a#"d 6 con%-$n+ %-ch con$%ca#"d $#"% a% c$+ar"##"%and ood %#-% *U(IC(). Th$% $% no# #o "n#$on HA-r$n+H 8ho $% $nh"r%"/, a d$%+rac" #o h"r d$&$%$on and #o #h" O$c" o #h" *ro&o%#Mar%ha/. In /$"- o #h$% o6%"r&a#$on, a I #h"r"or", a% $ #h" h"ad o#h" M"rchand$%" Con#ro/ D$&$%$on $% a8ar" o #h$% a/!rac#$c"L

An%8"r M"rchand$%" Con#ro/ G-ard% and a// o#h"r !"r%onn"/ ar"!roh$6$#"d ro a!!ro!r$a#$n+ con$%ca#"d $#"% or #h"$r o8n

con%-!#$on or -%". T8o /oc"d con#a$n"r% ar" $n%#a//"d a# #h" Ma$nGa#" ar"a or d"!o%$# o con$%ca#"d $#"% and #h" O*M "&$d"nc"c-%#od$an con#ro/% acc"%% #o #h"%" con#a$n"r%.

M"rchand$%" Con#ro/ G-ard% ar" !"r$##"d #o "a# #h"$r "a/% a# #h"$r8or%$#" d-" #o h"a& 8or/oad. Co!/a$n#% r"+ard$n+ "rchand$%"con#ro/ +-ard% !roc"d-r" or ac#$on% a 6" ad" d$r"c#/ a# #h"O$c" o #h" *ro&o%# Mar%ha/ or $"d$a#" and n"c"%%ar ac#$on.S!"c$$c da#"% and #$" a/on+ 8$#h d"#a$/% o %-%!"c#"d &$o/a#$on%8o-/d 6" o%# a!!r"c$a#"d. T"/"!hon" >?3>3>?323> or -r#h"r$nora#$on or #o r"!or# no#"d or %-%!"c#"d $rr"+-/ar$#$"%. EBh$6$#% E 0E?1.


36/101

Th" !"#$#$on"r% !"r%$%# #ha# #h" ad" #h" -"%#$on"d !-6/$ca#$on $n#h" !"roranc" o #h"$r o$c$a/ -nc#$on% a% ad$n$%#ra#$&" a%%$%#an#,$n #h" ca%" o M. '. J/$", and coand$n+ o$c"r, $n #h" ca%" oCa!#. a"% J$//$a% o #h" US Na& a%%$+n"d #o #h" U. S. Na&a/S#a#$on, S-6$c a, O/on+a!o C$# and 8"r", #h"r"or", $-n" ro%-$# or #h"$r o$c$a/ ac#$on%.

In #h" ca%" o Un$#"d S#a#"% o A"r$ca &. G-$n#o >199=, 8" d$%c-%%"d #h" !r$nc$!/" o #h" %#a#" $-n$# ro %-$# a%

o//o8%

Th" r-/" #ha# a %#a#" a no# 6" %-"d 8$#ho-# $#% con%"n#, no8"B!r"%%"d $n Ar#$c/" X4I, S"c#$on 3, o #h" 19;7 Con%#$#-#$on, $% on"o #h" +"n"ra// acc"!#"d !r$nc$!/"% o $n#"rna#$ona/ /a8 #ha# 8" ha&"ado!#"d a% !ar# o #h" /a8 o o-r /and -nd"r Ar#$c/" II, S"c#$on 2.

BBB BBB BBB

E&"n 8$#ho-# %-ch a$ra#$on, 8" 8o-/d %#$// 6" 6o-nd 6 #h"+"n"ra// acc"!#"d !r$nc$!/"% o $n#"rna#$ona/ /a8 -nd"r #h" doc#r$n"o $ncor!ora#$on. Und"r #h$% doc#r$n", a% acc"!#"d 6 #h" a:or$# o

%#a#"%, %-ch !r$nc$!/"% ar" d"""d $ncor!ora#"d $n #h" /a8 o "&"rc$&$/$"d %#a#" a% a cond$#$on and con%"-"nc" o $#% "6"r%h$! $n#h" %oc$"# o na#$on%. U!on $#% ad$%%$on #o %-ch %oc$"#, #h" %#a#" $%a-#oa#$ca// o6/$+a#"d #o co!/ 8$#h #h"%" !r$nc$!/"% $n $#% r"/a#$on%8$#h o#h"r %#a#"%.

A% a!!/$"d #o #h" /oca/ %#a#", #h" doc#r$n" o %#a#" $-n$# $% 6a%"don #h" :-%#$$ca#$on +$&"n 6 -%#$c" 'o/"% #ha# H#h"r" can 6" no/"+a/ r$+h# a+a$n%# #h" a-#hor$# 8h$ch a"% #h" /a8 on 8h$ch #h"r$+h# d"!"nd%.H 9= Th"r" ar"o#h"r !rac#$ca/ r"a%on% or #h" "norc""n# o #h" doc#r$n". In #h"ca%" o #h" or"$+n %#a#" %o-+h# #o 6" $!/"ad"d $n #h" /oca/

:-r$%d$c#$on, #h" add"d $nh$6$#$on $% "B!r"%%"d $n #h" aB$ !ar $n!ar", non ha6"# $!"r$-. A// %#a#"% ar" %o&"r"$+n "-a/% andcanno# a%%"r# :-r$%d$c#$on o&"r on" ano#h"r. A con#rar d$%!o%$#$on8o-/d, $n #h" /an+-a+" o a c"/"6ra#"d ca%", H-nd-/ &"B #h" !"ac"o na#$on%.H


37/101

r-/$n+ $n Ra-$a &. radord and c$#"d $n %-!!or# #h"r"o "Bc"r!#%ro #h" 8or% o #h" o//o8$n+ a-#hor$#a#$&" 8r$#"r% 4a##"/, Jh"a#on,'a//, (a8r"nc", O!!"nh"$, J"%#/a", 'd", and McNa$r and(a-#"r!ach#. Acc-rac d"and% #h" c/ar$$ca#$on #ha# a#"r #h"conc/-%$on o #h" *h$/$!!$n"?A"r$can M$/$#ar a%"% A+r"""n#, #h"#r"a# !ro&$%$on% %ho-/d con#ro/ on %-ch a##"r, #h" a%%-!#$on 6"$n+#ha# #h"r" 8a% a an$"%#a#$on o #h" %-6$%%$on #o :-r$%d$c#$on on #h"!ar# o #h" or"$+n !o8"r 8h"n"&"r a!!ro!r$a#". Mor" #o #h" !o$n#

$% S-$a &. A/"da (o!", 8h"r" !/a$n#$% a% /"%%or% %-"d #h"Coand$n+ G"n"ra/ o #h" Un$#"d S#a#"% Ar $n #h" *h$/$!!$n"%,%""$n+ #h" r"%#ora#$on #o #h" o #h" a!ar#"n# 6-$/d$n+% #h"o8n"d /"a%"d #o #h" Un$#"d S#a#"% ar"d orc"% %#a#$on $n #h" Man$/aar"a. A o#$on #o d$%$%% on #h" +ro-nd o non?%-a6$/$# 8a% $/"d and-!h"/d 6 r"%!ond"n# -d+". Th" a##"r 8a% #a"n #o #h$% Co-r# $na anda-% !roc""d$n+. I# a$/"d. I# 8a% #h" r-/$n+ #ha# r"%!ond"n#-d+" ac#"d corr"c#/ con%$d"r$n+ #ha# #h" Hac#$on -%# 6"con%$d"r"d a% on" a+a$n%# #h" U.S. Go&"rn"n#.H Th" o!$n$on o-%#$c" Mon#"aor con#$n-"d HI# $% c/"ar #ha# #h" co-r#% o #h"*h$/$!!$n"% $nc/-d$n+ #h" M-n$c$!a/ Co-r# o Man$/a ha&" no

:-r$%d$c#$on o&"r #h" !r"%"n# ca%" or -n/a8-/ d"#a$n"r. Th" -"%#$on

o /ac o :-r$%d$c#$on 8a% ra$%"d and $n#"r!o%"d a# #h" &"r 6"+$nn$n+o #h" ac#$on. Th" U.S. Go&"rn"n# ha% no# +$&"n $#% con%"n# #o #h"$/$n+ o #h$% %-$# 8h$ch $% "%%"n#$a// a+a$n%# h"r, #ho-+h no# $n na".Mor"o&"r, #h$% $% no# on/ a ca%" o a c$#$"n $/$n+ a %-$# a+a$n%# h$%o8n Go&"rn"n# 8$#ho-# #h" /a##"r@% con%"n# 6-# $# $% o a c$#$"n $/$n+an ac#$on a+a$n%# a or"$+n +o&"rn"n# 8$#ho-# %a$d +o&"rn"n#@%con%"n#, 8h$ch r"nd"r% or" o6&$o-% #h" /ac o :-r$%d$c#$on o #h"co-r#% o h$% co-n#r. Th" !r$nc$!/"% o /a8 6"h$nd #h$% r-/" ar" %o"/""n#ar and o %-ch +"n"ra/ acc"!#anc" #ha# 8" d"" $#-nn"c"%%ar #o c$#" a-#hor$#$"% $n %-!!or# #h"r"o.H

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Th"r" $% no -"%#$on #ha# #h" Un$#"d S#a#"% o A"r$ca, /$" an o#h"r%#a#", 8$// 6" d"""d #o ha&" $!/$"d/ 8a$&"d $#% non?%-a6$/$# $ $#ha% "n#"r"d $n#o a con#rac# $n $#% !ro!r$"#ar or !r$&a#" ca!ac$#. I# $%on/ 8h"n #h" con#rac# $n&o/&"% $#% %o&"r"$+n or +o&"rn"n#a/

ca!ac$# #ha# no %-ch 8a$&"r a 6" $!/$"d. Th$% 8a% o-r r-/$n+$n Un$#"d S#a#"% o A"r$ca &. R-$, ;7= 8h"r" #h"#ran%ac#$on $n -"%#$on d"a/# 8$#h #h" $!ro&""n# o #h" 8har&"% $n#h" na&a/ $n%#a//a#$on a# S-6$c a. A% #h$% 8a% a c/"ar/+o&"rn"n#a/ -nc#$on, 8" h"/d #ha# #h" con#rac# d$d no# o!"ra#" #od$&"%# #h" Un$#"d S#a#"% o $#% %o&"r"$+n $-n$# ro %-$#. In #h"8ord% o -%#$c" 4$c"n#" A6ad San#o%

Th" #rad$#$ona/ r-/" o $-n$# "Bc"!#% a S#a#" ro 6"$n+ %-"d $n#h" co-r#% o ano#h"r S#a#" 8$#ho-# $#% con%"n# or 8a$&"r. Th$% r-/" $%a n"c"%%ar con%"-"nc" o #h" !r$nc$!/"% o $nd"!"nd"nc" and

"-a/$# o S#a#"%. 'o8"&"r, #h" r-/"% o In#"rna#$ona/ (a8 ar" no#!"#r$$"d #h" ar" con%#an#/ d"&"/o!$n+ and "&o/&$n+. And 6"ca-%"#h" ac#$&$#$"% o %#a#"% ha&" -/#$!/$"d, $# ha% 6""n n"c"%%ar #od$%#$n+-$%h #h" 6"#8""n %o&"r"$+n and +o&"rn"n#a/ ac#%


38/101

Mar%ha/, or co"n#. Th" *ro&o%# Mar%ha/ o$c"@%r"%!on%" H. . . $nc/-d"d a %hor# no#" %#a#$n+ #ha# $ #h" ar#$c/" 8a%!-6/$%h"d, #o r"o&" #h" na".H


39/101

6" #r-" a% a +"n"ra/ r-/". In #h$% !ar#$c-/ar ca%", ho8"&"r, #h" r"cord%%ho8 #ha# #h" o"n%$&" !-6/$ca#$on 8a% %"n# #o #h" coand$n+o$c"r or a!!ro&a/ and h" a!!ro&"d $#. Th" ac#-a/ $nd$n+% o #h" #8oco-r#% 6"/o8 ar" 6a%"d on #h" r"cord%. Th" !"#$#$on"r% ha&" %ho8nno con&$nc$n+ r"a%on% 8h o-r -%-a/ r"%!"c# or #h" $nd$n+% o #h"#r$a/ co-r# and #h" r"%!ond"n# co-r# %ho-/d 6" 8$#hh"/d $n #h$%!ar#$c-/ar ca%" and 8h #h"$r d"c$%$on% %ho-/d 6" r"&"r%"d.

Ar#$c/" 217 o #h" C$&$/ Cod" !r"%cr$6"% a c$&$/ /$a6$/$# or daa+"%

ca-%"d 6 a !"r%on@% ac# or o$%%$on con%#$#-#$n+ a-/# or n"+/$+"nc",#o 8$#

Ar#. 217. Jho"&"r 6 ac# or o$%%$on, ca-%"% daa+" #o ano#h"r,#h"r" 6"$n+ a-/# or n"+/$+"nc" $% o6/$+"d #o !a or #h" daa+"don". S-ch a-/# or n"+/$+"nc", $ #h"r" $% no !r"?"B$%#$n+ con#rac#-a/r"/a#$on 6"#8""n #h" !ar#$"%, $% ca//"d a -a%$?d"/$c# and $% +o&"rn"d6 #h" !ro&$%$on% o #h$% Cha!#"r.

HFa-/#H or Hn"+/$+"nc"H $n #h$% Ar#$c/" co&"r% no# on/ ac#% Hno#!-n$%ha6/" 6 /a8H 6-# a/%o ac#% cr$$na/ $n charac#"r, 8h"#h"r$n#"n#$ona/ or &o/-n#ar or n"+/$+"n#.H 13 Oc#o6"r 31, 199

RE*U(IC OF T'E *'I(I**INES, !"#$#$on"r,&%.'ON. SOFRONIO G. SA)O, -d+", r. I, C I, N-"&a 4$caa, 'EIRSOF CASIANO SANDO4A(, 'EIRS OF (IERATO A)AUA, OSEC. RE)ES, and *'I(I**INE CACAO AND FARM *RODUCTS,INC., r"%!ond"n#%.

C"/%o D. Gan+an r"%!ond"n# '"$r% o ($6"ra#o aa-a.

Aco%#a 0 A%%oc$a#"% oB *h$/. Cacao and Far *rod-c#%, Inc.

o%" R""% 0 A%%oc$a#"% or '"$r% o Ca%$ano Sando&a/, "# a/.

NAR4ASA, .

So-+h# #o 6" ann-//"d and %"# a%$d" $n #h$% %!"c$a/ c$&$/ ac#$ono c"r#$orar$ $% #h" d"c$%$on o r"%!ond"n# -d+" Soron$o G. Saor"nd"r"d on March 5, 19;1 $n (and R"+$%#ra#$on Ca%" No. N?19,(RC R"cord No. 2;5, con$r$n+, 6 &$r#-" o a co!ro$%"a+r"""n#, #h" #$#/" o #h" !r$&a#" r"%!ond"n#% o&"r a #rac# o /and.

Th" %!o-%"%, Ca%$ano Sando&a/ and (- Mar-", $/"d an or$+$na/a!!/$ca#$on or r"+$%#ra#$on o a #rac# o /and $d"n#$$"d a% (o# No. 7>5>o #h" Cada%#ra/ S-r&" o San#$a+o, ( Cad. 211 ,19 h"c#ar"%

2= $n a&or o #h" -r"a- o For"%# D"&"/o!"n#, 12,3>1 h"c#ar"%

3= $n a&or o #h" '"$r% o ($6"ra#o aa-a, >, h"c#ar"% and

>= $n a&or o *h$/$!!$n" Cacao 0 Far *rod-c#%, Inc., ;,h"c#ar"%.

Th" r"a$n$n+ ar"a o 5,5 h"c#ar"% 8a%, -nd"r #h" co!ro$%"a+r"""n#, ad:-d$ca#"d #o and acno8/"d+"d a% o8n"d 6 #h" '"$r%o Ca%$ano Sando&a/, 6-# o-# o #h$% ar"a, 1,5 h"c#ar"% 8"r"a%%$+n"d 6 #h" Ca%$ano '"$r% #o #h"$r co-n%"/, o%" C. R""%, $n!a"n# o h$% a##orn"@% ""%. In con%$d"ra#$on o #h" ar"a%


40/101

r"%!"c#$&"/ a//oca#"d #o #h", a// #h" !ar#$"% a/%o -#-a// 8a$&"dand r"no-nc"d a// #h"$r !r$or c/a$% #o and o&"r (o# No. 7>5> o #h"San#$a+o Cada%#r".

In a d"c$%$on r"nd"r"d on March 5, 19;1, #h" r"%!ond"n# -d+"a!!ro&"d #h" co!ro$%" a+r"""n# and con$r"d #h" #$#/" ando8n"r%h$! o #h" !ar#$"% $n accordanc" 8$#h $#% #"r%.

Th" So/$c$#or G"n"ra/, $n 6"ha/ o #h" R"!-6/$c o #h" *h$/$!!$n"%,

ha% #a"n #h" !r"%"n# r"co-r%" $n a 6$d #o ha&" #ha# d"c$%$on oMarch 5, 19;1 ann-//"d a% 6"$n+ !a#"n#/ &o$d and r"nd"r"d $n"Bc"%% o :-r$%d$c#$on or 8$#h +ra&" a6-%" o d$%cr"#$on. Th" So/$c$#orG"n"ra/ con#"nd% #ha#

1= no "&$d"nc" 8ha#"&"r 8a% add-c"d 6 #h" !ar#$"% $n %-!!or# o#h"$r !"#$#$on% or r"+$%#ra#$on

2= n"$#h"r #h" D$r"c#or o (and% nor #h" D$r"c#or o For"%#D"&"/o!"n# had /"+a/ a-#hor$# #o "n#"r $n#o #h" co!ro$%"a+r"""n#

3= a% co-n%"/ o #h" R"!-6/$c, h" %ho-/d ha&" 6""n 6-# 8a% no#+$&"n no#$c" o #h" co!ro$%" a+r"""n# or o#h"r8$%" accord"d ano!!or#-n$# #o #a" !ar# #h"r"$n

>= #ha# h" 8a% no# "&"n %"r&"d 8$#h no#$c" o #h" d"c$%$on a!!ro&$n+#h" co!ro$%" $# 8a% #h" San++-n$an+ *an/a/a8$+an o -$r$no*ro&$nc" #ha# dr"8 h$% a##"n#$on #o #h" H!a#"n#/ "rron"o-% d"c$%$onHand r"-"%#"d h$ #o #a" $"d$a#" r""d$a/ "a%-r"% #o 6r$n+a6o-# $#% ann-/"n#.

Th" r"%!ond"n#% a$n#a$n, on #h" o#h"r hand, #ha# #h" So/$c$#orG"n"ra/@% ar+-"n#% ar" !r"$%"d on #h" !ro!o%$#$on #ha# (o# 7>5> $%

!-6/$c /and, 6-# $# $% no#. Accord$n+ #o #h", a% !o$n#"d o-# $n #h"a!!/$ca#$on or r"+$%#ra#$on, #h" !r$&a#" charac#"r o #h" /and $%d"on%#ra#"d 6 #h" o//o8$n+ c$rc-%#anc"%, #o 8$#

1= #h" !o%%"%%or $nora#$on #$#/" o #h" a!!/$can#% and #h"$r!r"d"c"%%or%?$n?$n#"r"%#

2= #h" ac# #ha# (o# 7>5> 8a% n"&"r c/a$"d #o 6" !-6/$c /and 6 #h"D$r"c#or o (and% $n #h" !ro!"r cada%#ra/ !roc""d$n+%

3= #h" !r"?8ar c"r#$$ca#$on o #h" Na#$ona/ ($6rar da#"d A-+-%# 1,1932 #o #h" ""c# #ha# #h" = #h" !roc""d$n+ or r"+$%#ra#$on, 6ro-+h# -nd"r Ac# >9 9, #ha#"&"r a!!/$can# %ho8 a !ro!"r #$#/" or r"+$%#ra#$on $nd""d, "&"n $n#h" a6%"nc" o an ad&"r%" c/a$, #h" a!!/$can# $% no# a%%-r"d o aa&ora6/" d"cr"" 6 #h" (and R"+$%#ra#$on Co-r#, $ h" a$/% #o"%#a6/$%h a !ro!"r #$#/" or o$c$a/ r"co+n$#$on.

I# #h-% a!!"ar% #ha# #h" d"c$%$on o #h" R"+$%#ra#$on Co-r# a -o $%6a%"d %o/"/ on #h" co!ro$%" a+r"""n# o #h" !ar#$"%. -# #ha#co!ro$%" a+r"""n# $nc/-d"d !r$&a#" !"r%on% 8ho had no#

add-c"d an co!"#"n# "&$d"nc" o #h"$r o8n"r%h$! o&"r #h" /and%-6:"c# o #h" r"+$%#ra#$on !roc""d$n+. *or#$on% o #h" /and $ncon#ro&"r% 8"r" a%%$+n"d #o !"r%on% or "n#$#$"% 8ho had !r"%"n#"dno#h$n+ 8ha#"&"r #o !ro&" #h"$r o8n"r%h$! o an !ar# o #h" /and.Jha# 8a% don" 8a% #o con%$d"r #h" co!ro$%" a+r"""n# a% !rooo #$#/" o #h" !ar#$"% #a$n+ !ar# #h"r"$n, a #o#a// -nacc"!#a6/"!ro!o%$#$on. Th" r"%-/# ha% 6""n #h" ad:-d$ca#$on o /and% o no /$##/""B#"n%$on #o !"r%on% 8ho had no# %-6$##"d an %-6%#an#$a#$on a# a//o #h"$r !r"#"n%$on% #o o8n"r%h$!, o-nd"d on no#h$n+ 6-# #h"a+r"""n# aon+ #h"%"/&"% #ha# #h" had r$+h#% and $n#"r"%#% o&"r#h" /and.


41/101

Th" a%%"n# o #h" D$r"c#or% o (and% and For"%# D"&"/o!"n# #o #h"co!ro$%" a+r"""n# d$d no# and co-/d no# %-!!/ #h" a6%"nc" o"&$d"nc" o #$#/" r"-$r"d o #h" !r$&a#" r"%!ond"n#%.

A% #o #h" $norac$on !o%"%or$a $n&o"d 6 #h" !r$&a#" r"%!ond"n#%,$# %ho-/d 6" !o$n#"d o-# #ha# -nd"r #h" S!an$%h Mor#+a+" (a8, $# 8a%con%$d"r"d a od" o ac-$r$n+ #$#/" #o !-6/$c /and%, %-6:"c# #o #8o ,7>1.

Th" #r$a/ co-r#@% $nd$n+% o ac#, 8h$ch ar" -// %-!!or#"d 6 #h"r"cord, ar" a% o//o8%

I# $% a ac# no# d$%!-#"d 6 co-n%"/ or #h" d""ndan# #ha# 8h"n #h"!/a$n#$, r$d$n+ on a o#orcc/", 8a% +o$n+ #o8ard #h" 8"%#"rn !ar# oCa//" *adr" Fa-ra, !a%%$n+ a/on+ #h" 8"%# %$d" #h"r"o a# a %!""d o#"n #o #8"/&" $/"% an ho-r, -!on cro%%$n+ Ta# A&"n-" and 8h"n h"8a% #"n ""# ro #h" %o-#h8"%#"rn $n#"r%"c#$on o %a$d %#r""#%, #h"

G"n"ra/ 'o%!$#a/ a6-/anc", -!on r"ach$n+ %a$d a&"n-", $n%#"ad o#-rn$n+ #o8ard #h" %o-#h, a#"r !a%%$n+ #h" c"n#"r #h"r"o, %o #ha# $#8o-/d 6" on #h" /"# %$d" o %a$d a&"n-", a% $% !r"%cr$6"d 6 #h"ord$nanc" and #h" Mo#or 4"h$c/" Ac#, #-rn"d %-dd"n/ and-n"B!"c#"d/ and /on+ 6"or" r"ach$n+ #h" c"n#"r o #h" %#r""#, $n#o#h" r$+h# %$d" o Ta# A&"n-", 8$#ho-# ha&$n+ %o-nd"d an 8h$%#/" orhorn, 6 8h$ch o&""n# $# %#r-c #h" !/a$n#$, 8ho 8a% a/r"ad %$B""# ro #h" %o-#h8"%#"rn !o$n# or ro #h" !o%# !/ac" #h"r".

r"a%on o #h" r"%-/#$n+ co//$%$on, #h" !/a$n#$ 8a% %o %"&"r"/$n:-r"d #ha#, accord$n+ #o Dr. Sa/""6, 8ho "Ba$n"d h$ on #h" &"r%a" da #ha# h" 8a% #a"n #o #h" G"n"ra/ 'o%!$#a/, h" 8a%%-"r$n+ ro a d"!r"%%$on $n #h" /"# !ar$"#a/ r"+$on, a 8o-/d $n #h"%a" !/ac" and $n #h" 6ac !ar# o h$% h"ad, 8h$/" 6/ood $%%-"d roh$% no%" and h" 8a% "n#$r"/ -ncon%c$o-%.

Th" ar% r"&"a/"d #ha# h" had on" or or" rac#-r"% o #h" %-//and #ha# #h" +r" a##"r and 6ra$n 8a% had %-"r"d a#"r$a/ $n:-r.A# #"n o@c/oc o #h" n$+h# $n -"%#$on, 8h$ch 8a% #h" #$" %"# or!"ror$n+ #h" o!"ra#$on, h$% !-/%" 8a% %o 8"a and %o $rr"+-/ar#ha#, $n h$% o!$n$on, #h"r" 8a% /$##/" ho!" #ha# h" 8o-/d /$&". '$% r$+h#/"+ 8a% 6ro"n $n %-ch a 8a #ha# #h" rac#-r" "B#"nd"d #o #h" o-#"r%$n $n %-ch ann"r #ha# $# $+h# 6" r"+ard"d a% do-6/" and #h"

8o-/d 6" "B!o%"d #o $n"c#$on, or 8h$ch r"a%on $# 8a% o #h" o%#%"r$o-% na#-r".

A# ano#h"r "Ba$na#$on %$B da% 6"or" #h" da o #h" #r$a/, Dr.Sa/""6 no#$c"d #ha# #h" !/a$n#$@% /"+ %ho8"d a con#rac#$on o an$nch and a ha/ and a c-r&a#-r" #ha# ad" h$% /"+ &"r 8"a and!a$n-/ a# #h" !o$n# o #h" rac#-r". EBa$na#$on o h$% h"ad r"&"a/"da no#a6/" r"ad:-%#"n# o #h" -nc#$on% o #h" 6ra$n and n"r&"%. Th"!a#$"n# a!!ar"n#/ 8a% %/$+h#/ d"a, had a /$+h# 8"an"%% $n h$% ""%and $n h$% "n#a/ cond$#$on. Th$% /a##"r 8"an"%% 8a% a/8a% no#$c"d8h"n #h" !/a$n#$ had #o do an d$$c-/# "n#a/ /a6or, "%!"c$a// 8h"nh" a##"!#"d #o -%" h$% on" or a#h"a#$ca/ ca/c-/a#$on%.


42/101

Accord$n+ #o #h" &ar$o-% "rchan#% 8ho #"%#$$"d a% 8$#n"%%"%, #h"!/a$n#$@% "n#a/ and !h%$ca/ cond$#$on !r$or #o #h" acc$d"n# 8a%"Bc"//"n#, and #ha# a#"r ha&$n+ r"c"$&"d #h" $n:-r$"% #ha# ha&" 6""nd$%c-%%"d, h$% !h%$ca/ cond$#$on had -nd"r+on" a no#$c"a6/"d"!r"c$a#$on, or h" had /o%# #h" a+$/$#, "n"r+, and a6$/$# #ha# h" hadcon%#an#/ d$%!/a"d 6"or" #h" acc$d"n# a% on" o #h" 6"%#con%#r-c#or% o 8ood"n 6-$/d$n+% and h" co-/d no# no8 "arn "&"n aha/ o #h" $nco" #ha# h" had %"c-r"d or h$% 8or 6"ca-%" h" had

/o%# 5 !"r c"n# o h$% "$c$"nc. A% a con#rac#or, h" co-/d no /on+"r,a% h" had 6"or" don", c/$6 -! /add"r% and %cao/d$n+% #o r"ach#h" h$+h"%# !ar#% o #h" 6-$/d$n+.

A% a con%"-"nc" o #h" /o%% #h" !/a$n#$ %-"r"d $n #h" "$c$"nc oh$% 8or a% a con#rac#or, h" had #o d$%%o/&"d #h" !ar#n"r%h$! h" hador"d 8$#h #h" "n+$n""r. J$/%on, 6"ca-%" h" 8a% $nca!ac$#a#"dro a$n+ a#h"a#$ca/ ca/c-/a#$on% on acco-n# o #h" cond$#$on oh$% /"+ and o h$% "n#a/ ac-/#$"%, and h" had #o +$&" -! a con#rac#h" had or #h" con%#r-c#$on o #h" U Chaco 6-$/d$n+.H

J" a %a a# #h" o-#%"# #ha# 8" ar" $n -// accord 8$#h #h" #r$a/ co-r##o #h" ""c# #ha# #h" co//$%$on 6"#8""n #h" !/a$n#$@% o#orcc/" and#h" a6-/anc" o #h" G"n"ra/ 'o%!$#a/ 8a% d-" %o/"/ #o #h"n"+/$+"nc" o #h" cha-"-r.

Th" #8o $#"% 8h$ch con%#$#-#" a !ar# o #h" *1>,7>1 and 8h$ch ar"dra8n $n -"%#$on 6 #h" !/a$n#$ ar" 57, ""c#$&" F"6r-ar 3, 1915, r"ad%

An Ac# a-#hor$$n+ E. M"rr$## #o 6r$n+ %-$# a+a$n%# #h" Go&"rn"n# o#h" *h$/$!!$n" I%/and% and a-#hor$$n+ #h" A##orn"?G"n"ra/ o %a$dI%/and% #o a!!"ar $n %a$d %-$#.

Jh"r"a% a c/a$ ha% 6""n $/"d a+a$n%# #h" Go&"rn"n# o #h"*h$/$!!$n" I%/and% 6 Mr. E. M"rr$##, o Man$/a, or daa+"% r"%-/#$n+ro a co//$%$on 6"#8""n h$% o#orcc/" and #h" a6-/anc" o #h"

G"n"ra/ 'o%!$#a/ on March #8"n#?$#h, n$n"#""n h-ndr"d and#h$r#""n

Jh"r"a% $# $% no# no8n 8ho $% r"%!on%$6/" or #h" acc$d"n# nor $% $#!o%%$6/" #o d"#"r$n" #h" ao-n# o daa+"%, $ an, #o 8h$ch #h"c/a$an# $% "n#$#/"d and

Jh"r"a% #h" D$r"c#or o *-6/$c Jor% and #h" A##orn"?G"n"ra/r"co"nd"d #ha# an Ac# 6" !a%%"d 6 #h" ("+$%/a#-r" a-#hor$$n+

Mr. E. M"rr$## #o 6r$n+ %-$# $n #h" co-r#% a+a$n%# #h" Go&"rn"n#, $nord"r #ha# %a$d -"%#$on% a 6" d"c$d"d No8, #h"r"or",

a-#hor$# o #h" Un$#"d S#a#"%, 6" $# "nac#"d 6 #h" *h$/$!!$n"("+$%/a#-r", #ha#

SECTION 1. E. M"rr$## $% h"r"6 a-#hor$"d #o 6r$n+ %-$# $n #h" Co-r#o F$r%# In%#anc" o #h" c$ # o Man$/a a+a$n%# #h" Go&"rn"n# o #h"*h$/$!!$n" I%/and% $n ord"r #o $B #h" r"%!on%$6$/$# or #h" co//$%$on6"#8""n h$% o#orcc/" and #h" a6-/anc" o #h" G"n"ra/ 'o%!$#a/,and #o d"#"r$n" #h" ao-n# o #h" daa+"%, $ an, #o 8h$ch Mr. E.M"rr$## $% "n#$#/"d on acco-n# o %a$d co//$%$on, and #h" A##orn"?

G"n"ra/ o #h" *h$/$!!$n" I%/and% $% h"r"6 a-#hor$"d and d$r"c#"d #oa!!"ar a# #h" #r$a/ on #h" 6"ha/ o #h" Go&"rn"n# o %a$d I%/and%, #od""ndan# %a$d Go&"rn"n# a# #h" %a".

SEC. 2. Th$% Ac# %ha// #a" ""c# on $#% !a%%a+".

Enac#"d, F"6r-ar 3, 1915.

D$d #h" d""ndan#, $n "nac#$n+ #h" a6o&" -o#"d Ac#, %$!/ 8a$&" $#%$-n$# ro %-$# or d$d $# a/%o conc"d" $#% /$a6$/$# #o #h" !/a$n#$L Ion/ #h" or"r, #h"n $# canno# 6" h"/d #ha# #h" Ac# cr"a#"d an n"8ca-%" o ac#$on $n a&or o #h" !/a$n#$ or "B#"nd"d #h" d""ndan#@%

/$a6$/$# #o an ca%" no# !r"&$o-%/ r"co+n$"d.

A// ad$# #ha# #h" In%-/ar Go&"rn"n#


43/101

Th" Go&"rn"n# o #h" *h$/$!!$n" I%/and% ha&$n+ 6""n Hod"/"da#"r #h" F"d"ra/ and S#a#" Go&"rn"n#% $n #h" Un$#"d S#a#"%,H 8"a /oo #o #h" d"c$%$on% o #h" h$+h co-r#% o #ha# co-n#r or a$d $nd"#"r$n$n+ #h" !-r!o%" and %co!" o Ac# No. 2>57.

In #h" Un$#"d S#a#"% #h" r-/" #ha# #h" %#a#" $% no# /$a6/" or #h" #or#%co$##"d 6 $#% o$c"r% or a+"n#% 8ho $# "!/o%, "Bc"!# 8h"n"B!r"%%/ ad" %o 6 /"+$%/a#$&" "nac#"n#, $% 8"// %"##/"d. HTh"Go&"rn"n#,H %a% -%#$c" S#or, Hdo"% no# -nd"r#a" #o +-aran#""

#o an !"r%on #h" $d"/$# o #h" o$c"r% or a+"n#% 8ho $# "!/o%,%$nc" #ha# 8o-/d $n&o/&" $# $n a// $#% o!"ra#$on% $n "nd/"%%"6arra%%"n#%, d$$c-/#$"% and /o%%"%, 8h$ch 8o-/d 6" %-6&"r%$&"o #h" !-6/$c $n#"r"%#.H >Cha!an &%. S#a#", 1> Ca/., 9 >3 A. S#. R"!., 15; Gr""n &%.

S#a#", 73 Ca/., 29 o-rn &%. 'ar#, 93 Ca/., 321 27 A. S#. R"!., 23S#or on A+"nc, %"c. 319.=

A% #o #h" %co!" o /"+$%/a#$&" "nac#"n#% !"r$##$n+ $nd$&$d-a/% #o%-" #h" %#a#" 8h"r" #h" ca-%" o ac#$on ar$%"% o-# o "$#h"r or# orcon#rac#, #h" r-/" $% %#a#"d $n 3 Cc., 915, #h-%

con%"n#$n+ #o 6" %-"d a %#a#" %$!/ 8a$&"% $#% $-n$# ro%-$#. I# do"% no# #h"r"6 conc"d" $#% /$a6$/$# #o !/a$n#$, or cr"a#" anca-%" o ac#$on $n h$% a&or, or "B#"nd $#% /$a6$/$# #o an ca-%" no#!r"&$o-%/ r"co+n$"d. I# "r"/ +$&"% a r""d #o "norc" a!r""B$%#$n+ /$a6$/$# and %-6$#% $#%"/ #o #h" :-r$%d$c#$on o #h" co-r#,

%-6:"c# #o $#% r$+h# #o $n#"r!o%" an /a8-/ d""n%".In A!"/6ach"r &%. S#a#" >, ad&anc"d %h""#%=, d"c$d"dA!r$/ 1, 1915, #h" Ac# o 1913, 8h$ch a-#hor$"d #h" 6r$n+$n+ o #h$%%-$#, r"ad

SECTION 1. A-#hor$# $% h"r"6 +$&"n #o G"or+" A!"/6ach"r, o #h"#o8n o S-$#, Ja-"%ha Co-n#, J$%con%$n, #o 6r$n+ %-$# $n %-chco-r# or co-r#% and $n %-ch or or or% a% h" a 6" ad&$%"d or#h" !-r!o%" o %"##/$n+ and d"#"r$n$n+ a// con#ro&"r%$"% 8h$ch h"a no8 ha&" 8$#h #h" S#a#" o J$%con%$n, or $#% d-/ a-#hor$"do$c"r% and a+"n#%, r"/a#$&" #o #h" $// !ro!"r# o %a$d G"or+"

A!"/6ach"r, #h" $%h ha#ch"r o #h" S#a#" o J$%con%$n on #h" arR$&"r, and #h" $// !ro!"r# o E&an '-!hr" a# #h" /o8"r "nd oNa+a8$ca (a", and r"/a#$&" #o #h" -%" o #h" 8a#"r% o %a$d arR$&"r and Na+a8$ca (a", a// $n #h" co-n# o Ja-"%ha,J$%con%$n.

In d"#"r$n$n+ #h" %co!" o #h$% ac#, #h" co-r# %a$d

*/a$n#$ c/a$% #ha# 6 #h" "nac#"n# o #h$% /a8 #h" /"+$%/a#-r"

ad$##"d /$a6$/$# on #h" !ar# o #h" %#a#" or #h" ac#% o $#% o$c"r%,and #ha# #h" %-$# no8 %#and% :-%# a% $# 8o-/d %#and 6"#8""n !r$&a#"!ar#$"%. I# $% d$$c-/# #o %"" ho8 #h" ac# do"%, or 8a% $n#"nd"d #o do,or" #han r"o&" #h" %#a#"@% $-n$# ro %-$#. I# %$!/ +$&"%a-#hor$# #o co"nc" %-$# or #h" !-r!o%" o %"##/$n+ !/a$n#$@%con#ro&"r%$"% 8$#h #h" "%#a#". No8h"r" $n #h" ac# $% #h"r" a 8h$%!"ror %-++"%#$on #ha# #h" co-r# or co-r#% $n #h" d$%!o%$#$on o #h" %-$#%ha// d"!ar# ro 8"// "%#a6/$%h"d !r$nc$!/"% o /a8, or #ha# #h"ao-n# o daa+"% $% #h" on/ -"%#$on #o 6" %"##/"d. Th" ac#o!"n"d #h" door o #h" co-r# #o #h" !/a$n#$. I# d$d no# !a%% -!on #h"-"%#$on o /$a6$/$#, 6-# /"# #h" %-$# :-%# 8h"r" $# 8o-/d 6" $n #h"a6%"nc" o #h" %#a#"@% $-n$# ro %-$#. I #h" ("+$%/a#-r" had$n#"nd"d #o chan+" #h" r-/" #ha# o6#a$n"d $n #h$% %#a#" %o /on+ and #od"c/ar" /$a6$/$# on #h" !ar# o #h" %#a#", $# 8o-/d no# ha&" /"# %o$!or#an# a a##"r #o "r" $n"r"nc", 6-# 8o-/d ha&" don" %o $n"B!r"%% #"r%. N.E., ;5> ; (. R. A., 399.=

In D"nn$n+ &%. S#a#" Ca/., 9 >3 A. S#. R"!.,15; M"/&$n &%. S#a#", 121 Ca/., 1.=

A %#a#-#" o Ma%%ach-%"##% "nac#"d $n 1;;7 +a&" #o #h" %-!"r$orco-r# H:-r$%d$c#$on o a// c/a$% a+a$n%# #h" coon8"a/#h, 8h"#h"r a#/a8 or $n "-$#,H 8$#h an "Bc"!#$on no# n"c"%%ar #o 6" h"r""n#$on"d. In con%#r-$n+ #h$% %#a#-#" #h" co-r#, $n M-rdoc Gra#" Co.&%. Coon8"a/#h


44/101

on/ an $n#"n#$on #o !ro&$d" a :-d$c$a/ #r$6-na/ 8h"r" 8"// r"co+n$"d"B$%#$n+ /$a6$/$#$"% can 6" ad:-d$ca#"d.

In S$!!/" &%. S#a#" =, 8h"r" #h" 6oard o #h" cana/c/a$% had, 6 #h" #"r% o #h" %#a#-#" o N"8 )or, :-r$%d$c#$on oc/a$% or daa+"% or $n:-r$"% $n #h" ana+""n# o #h" cana/%%-ch a% #h" !/a$n#$ had %-%#a$n"d, Ch$" -%#$c" R-+"r r"ar% HI#-%# 6" conc"d"d #ha# #h" %#a#" can 6" ad" /$a6/" or $n:-r$"%ar$%$n+ ro #h" n"+/$+"nc" o $#% a+"n#% or %"r&an#%, on/ 6 orc" o

%o" !o%$#$&" %#a#-#" a%%-$n+ %-ch /$a6$/$ #.H

I# 6"$n+ -$#" c/"ar #ha# Ac# No. 2>57 do"% no# o!"ra#" #o "B#"nd #h"Go&"rn"n#@% /$a6$/$# #o an ca-%" no# !r"&$o-%/ r"co+n$"d, 8" 8$//no8 "Ba$n" #h" %-6%#an#$&" /a8 #o-ch$n+ #h" d""ndan#@% /$a6$/$# or#h" n"+/$+"n# ac#% o $#% o$c"r%, a+"n#%, and "!/o""%. *ara+ra!h 5o ar#$c/" 193 o #h" C$&$/ Cod" r"ad%

Th" %#a#" $% /$a6/" $n #h$% %"n%" 8h"n $# ac#% #hro-+h a %!"c$a/ a+"n#,6-# no# 8h"n #h" daa+" %ho-/d ha&" 6""n ca-%"d 6 #h" o$c$a/ #o8ho !ro!"r/ $# !"r#a$n"d #o do #h" ac# !"ror"d, $n 8h$ch ca%" #h"!ro&$%$on% o #h" !r"c"d$n+ ar#$c/" %ha// 6" a!!/$ca6/".

Th" %-!r"" co-r# o S!a$n $n d"$n$n+ #h" %co!" o #h$% !ara+ra!h%a$d

Tha# #h" o6/$+a#$on #o $nd"n$ or daa+"% 8h$ch a #h$rd !"r%onca-%"% #o ano#h"r 6 h$% a-/# or n"+/$+"nc" $% 6a%"d, a% $%"&$d"nc"d 6 #h" %a" (a8 3, T$#/" 15, *ar#$da 7, on #ha# #h" !"r%ono6/$+a#"d, 6 h$% o8n a-/# or n"+/$+"nc", #a"% !ar# $n #h" ac# oro$%%$on o #h" #h$rd !ar# 8ho ca-%"d #h" daa+". I# o//o8%#h"r"ro #ha# #h" %#a#", 6 &$r#-" o %-ch !ro&$%$on% o /a8, $% no#r"%!on%$6/" or #h" daa+"% %-"r"d 6 !r$&a#" $nd$&$d-a/% $ncon%"-"nc" o ac#% !"ror"d 6 $#% "!/o""% $n #h" d$%char+" o

#h" -nc#$on% !"r#a$n$n+ #o #h"$r o$c", 6"ca-%" n"$#h"r a-/# nor "&"nn"+/$+"nc" can 6" !r"%-"d on #h" !ar# o #h" %#a#" $n #h"or+an$a#$on o 6ranch"% o !-6/$c %"r&$c" and $n #h" a!!o$n#"n# o$#% a+"n#% on #h" con#rar, 8" -%# !r"%-!!o%" a// or"%$+h# h-an/!o%%$6/" on $#% !ar# $n ord"r #ha# "ach 6ranch o %"r&$c" %"r&"% #h"+"n"ra/ 8"a/ an #ha# o !r$&a#" !"r%on% $n#"r"%#"d $n $#% o!"ra#$on."#8""n #h"%" /a##"r and #h" %#a#", #h"r"or", no r"/a#$on% o a !r$&a#"na#-r" +o&"rn"d 6 #h" c$&$/ /a8 can ar$%" "Bc"!# $n a ca%" 8h"r" #h"%#a#" ac#% a% a :-d$c$a/ !"r%on ca!a6/" o ac-$r$n+ r$+h#% andcon#rac#$n+ o6/$+a#$on%. .=

Tha# #h" C$&$/ Cod" $n cha!#"r 2, #$#/" 1, 6oo >, r"+-/a#"% #h"o6/$+a#$on% 8h$ch ar$%" o-# o a-/# or n"+/$+"nc" and 8h"r"a% $n #h"$r%# ar#$c/" #h"r"o. No. 192, 8h"r" #h" +"n"ra/ !r$nc$!/" $% /a$d do8n#ha# 8h"r" a !"r%on 8ho 6 an ac# or o$%%$on ca-%"% daa+" #oano#h"r #hro-+h a-/# or n"+/$+"nc", %ha// 6" o6/$+"d #o r"!a$r #h"daa+" %o don", r""r"nc" $% ad" #o ac#% or o$%%$on% o #h"!"r%on% 8ho d$r"c#/ or $nd$r"c#/ ca-%" #h" daa+", #h" o//o8$n+ar#$c/"% r""r% #o #h$% !"r%on% and $!o%"% an $d"n#$ca/ o6/$+a#$on-!on #ho%" 8ho a$n#a$n $B"d r"/a#$on% o a-#hor$# and %-!"r$or$#o&"r #h" a-#hor% o #h" daa+", 6"ca-%" #h" /a8 !r"%-"% #ha# $ncon%"-"nc" o %-ch r"/a#$on% #h" "&$/ ca-%"d 6 #h"$r o8n a-/# or

n"+/$+"nc" $% $!-#a6/" #o #h". Th$% /"+a/ !r"%-!#$on +$&"% 8a #o!roo, ho8"&"r, 6"ca-%", a% h"/d $n #h" /a%# !ara+ra!h o ar#$c/"193, r"%!on%$6$/$# or ac#% o #h$rd !"r%on% c"a%"% 8h"n #h"!"r%on% "n#$on"d $n %a$d ar#$c/" !ro&" #ha# #h" "!/o"d a// #h"d$/$+"nc" o a +ood a#h"r o a a$/ #o a&o$d #h" daa+", andaon+ #h"%" !"r%on%, ca//"d -!on #o an%8"r $n a d$r"c# and no# a%-6%$d$ar ann"r, ar" o-nd, $n add$#$on #o #h" o#h"r or #h" a#h"r$n a !ro!"r ca%", +-ard$an% and o8n"r% or d$r"c#or% o an

"%#a6/$%h"n# or "n#"r!r$%", #h" %#a#", 6-# no# a/8a%, "Bc"!# 8h"n $#ac#% #hro-+h #h" a+"nc o a %!"c$a/ a+"n#, do-6#/"%% 6"ca-%" andon/ $n #h$% ca%", #h" a-/# or n"+/$+"nc", 8h$ch $% #h" or$+$na/ 6a%$% o#h$% $nd o o6:"c#$on%, -%# 6" !r"%-"d #o /$" 8$#h #h" %#a#".

Tha# a/#ho-+h $n %o" ca%"% #h" %#a#" $+h# 6 &$r#-" o #h" +"n"ra/!r$nc$!/" %"# or#h $n ar#$c/" 192 r"%!ond or a// #h" daa+" #ha# $%occa%$on"d #o !r$&a#" !ar#$"% 6 ord"r% or r"%o/-#$on% 8h$ch 6 a-/#or n"+/$+"nc" ar" ad" 6 6ranch"% o #h" c"n#ra/ ad$n$%#ra#$onac#$n+ $n #h" na" and r"!r"%"n#a#$on o #h" %#a#" $ #%"/ and a% an"B#"rna/ "B!r"%%$on o $#% %o&"r"$+n# $n #h" "B"rc$%" o $#% "B"c-#$&"!o8"r%, "# %a$d ar#$c/" $% no# a!!/$ca6/" $n #h" ca%" o daa+"% %a$d

#o ha&" 6""n occa%$on"d #o #h" !"#$#$on"r% 6 an "B"c-#$&" o$c$a/,ac#$n+ $n #h" "B"rc$%" o h$% !o8"r%, $n !roc""d$n+% #o "norc" #h"co//"c#$on% o c"r#a$n !ro!"r# #aB"% o8$n+ 6 #h" o8n"r o #h"!ro!"r# 8h$ch #h" ho/d $n %-6/"a%".

Tha# #h" r"%!on%$6$/$# o #h" %#a#" $% /$$#"d 6 ar#$c/" 193 #o #h"ca%" 8h"r"$n $# ac#% #hro-+h a %!"c$a/ a+"n# , $n a daa+" ca%", #h" r"%!on%$6$/$# o #h" %#a#" $% /$$#"d#o #ha# 8h$ch $# con#rac#% #hro-+h a %!"c$a/ a+"n#, d-/ "!o8"r"d 6a d"$n$#" ord"r or co$%%$on #o !"ror %o" ac# or char+"d 8$#h%o" d"$n$#" !-r!o%" 8h$ch +$&"% r$%" #o #h" c/a$, and no# 8h"r"

#h" c/a$ $% 6a%"d on ac#% or o$%%$on% $!-#a6/" #o a !-6/$c o$c$a/char+"d 8$#h %o" ad$n$%#ra#$&" or #"chn$ca/ o$c" 8ho can 6" h"/d#o #h" !ro!"r r"%!on%$6$/$# $n #h" ann"r /a$d do8n 6 #h" /a8 o c$&$/r"%!on%$6$/$#. Con%"-"n#/, #h" #r$a/ co-r# $n no# %o d"c$d$n+ and $n%"n#"nc$n+ #h" %a$d "n#$# #o #h" !a"n# o daa+"%, ca-%"d 6 ano$c$a/ o #h" %"cond c/a%% r""rr"d #o, ha% 6 "rron"o-%$n#"r!r"#a#$on $nr$n+"d #h" !ro&$%$on% o ar#$c/"% 192 and 193 o #h"C$&$/ Cod". .=


45/101

I# $%, #h"r"or", "&$d"nc" #ha# #h" S#a#"

FERNANDO A. FROI(AN, !/a$n#$?a!!"//"",

&%.*AN ORIENTA( S'I**ING COM*AN), d""ndan#?a!!"//an#,RE*U(IC OF T'E *'I(I**INES, and COM*ANIAMARITIMA, $n#"r&"nor%?a!!"//""%.

Sc$!, Sa/aar 0 A%%oc$a#"% and Enr$-" F"rnando 0 Ea-$%-6$n+?F"rnando or d""ndan#?a!!"//an#.Th" Go&"rn"n# Cor!ora#" Co-n%"/ or $n#"r&"nor%?a!!"//""%.Raa"/ D$n+/a%an or !/a$n#$?a!!"//"".

ARRERA, .

On March 7, 19>7, F"rnando A. Fro$/an !-rcha%"d ro #h" Sh$!!$n+Ad$n$%#ra#$on a 6oa# d"%cr$6"d a% M4FS 197 or #h" %- o*2,., 8$#h a do8n !a"n# o *5,,. To %"c-r"!a"n# o #h" -n!a$d 6a/anc" o #h" !-rcha%" !r$c", a or#+a+"8a% con%#$#-#"d on #h" &"%%"/ $n a&or o #h" Sh$!!$n+ Ad$n$%#ra#$on$n a con#rac# 8h$ch !ro&$d"%, aon+ o#h"r%, #h" o//o8$n+

In #h" "&"n# #ha# #h" FIRST *ART) %ho-/d "/"c# #o "B"rc$%" $#% r$+h#%#o r"%c$nd -nd"r #h" #"r% o #h$% con#rac#, $# %ha// ha&" #h" r$+h# #o#a" !o%%"%%$on o #h" &"%%"/ h"r"$n %o/d $n #h" cond$#$on #ha# $# $% a##h" #$" o r"%c$%%$on 6-# $n no ca%" $n a 8or%" cond$#$on #han 8h"nor$+$na// d"/$&"r"d #o #h" %"cond !ar#, ord$nar 8"ar and #"ar

"Bc"!#"d and $n ca%" a# #h" #$" o r"%c$%%$on #h" cond$#$on o #h"&"%%"/ $% no# %a#$%ac#or #o #h" FIRST *ART), $# %ha// ha&" #h" r$+h##o ha&" #h" &"%%"/ r"cond$#$on"d, r"!a$r"d, dr?doc"d a# #h""B!"n%" o #h" SECOND *ART). Th" %a" r$+h# $% h"r"6 +ran#"d#o #h" FIRST *ART) $n ca%" #h" SECOND *ART) %ho-/d or anr"a%on r"-%" or a$/ #o co!/ 8$#h #h$% cond$#$on o %a/" and r"#-rn#h" &"%%"/ h"r"$n %o/d $n a cond$#$on no# %a#$%ac#or #o #h" FIRST*ART).

Th" r$+h# o r"%c$%%$on %ha// 6" con%$d"r"d a% a c--/a#$&" r""d+ran#"d #o #h" FIRST *ART) and %ha// no# $n an 8a !r":-d$c" h$%

r$+h# #o d"and $"d$a#" and co!/"#" !a"n# o #h" !-rcha%"!r$c" o #h" &"%%"/ -nd"r #h" #"r% h"r"$n !ro&$d"d, and #o d"andand co//"c# ro #h" SECOND *ART) %-ch daa+"% ca-%"d 6 #h"non?co!/$anc" 8$#h #h$% con#rac#.

Th$% con#rac# 8a% d-/ a!!ro&"d 6 #h" *r"%$d"n# o #h" *h$/$!!$n"%.

Fro$/an a!!"ar"d #o ha&" d"a-/#"d $n %!$#" o d"and%, no# on/ $n#h" !a"n# o #h" $r%# $n%#a//"n# on #h" -n!a$d 6a/anc" o #h"

!-rcha%" !r$c" and #h" $n#"r"%# #h"r"on 8h"n #h" "// d-", 6-# a/%oa$/"d $n h$% "B!r"%% -nd"r#a$n+ #o !a #h" !r"$-% on #h"$n%-ranc" co&"ra+" o #h" &"%%"/, o6/$+$n+ #h" Sh$!!$n+Ad$n$%#ra#$on #o ad&anc" %-ch !a"n# #o #h" $n%-ranc" co!an.Con%"-"n#/, #h" Sh$!!$n+ Ad$n$%#ra#$on r"-"%#"d #h"Co$%%$on"r o C-%#o% on -n" 1, 19>; #o r"-%" c/"aranc" on#h" &"%%"/ and #h" &oa+" #h"r"o 8a% ord"r"d %-%!"nd"d.

Th"r"a#"r, Fro$/an a%"d or a r"con%$d"ra#$on o #h" ac#$on #a"n 6#h" Sh$!!$n+ Ad$n$%#ra#$on, c/a$$n+ #ha# h$% a$/-r" #o !a #h"r"-$r"d $n%#a//"n#% 8a% d-" #o #h" ac# #ha# h" 8a% a8a$#$n+ #h"d"c$%$on o #h" *r"%$d"n# on #h" !"#$#$on o #h" %h$!o8n"r% or an

"B#"n%$on o #h" !"r$od o !a"n# o #h" !-rcha%"d &"%%"/%, 8h$ch!"#$#$on 8a% a&ora6/ ac#"d -!on.

On -/ 3, 19>;, #h" Sh$!!$n+ Ad$n$%#ra#$on and Fro$/an "n#"r"d $n#oan a+r"""n# 8h"r"6 #h" /a##"r -

Political Law 1 Cases Part 2

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