Republic of the Philippines SUPREME COURT Manila EN BANC G.R. Nos.

177857-58 September 4, 2012

PH ! PP NE COCONUT PRO"UCERS #E"ER$T ON, NC. %COCO#E"&, M$NUE! '. "E! ROS$R O, "OM NGO P. ESP N$, S$!'$"OR P. ($!!$RES, )OSE! TO $. MOR$!E"$, P$* M. +$SON, ' CENTE $. C$" *, CES$R $ "E !UN$ T TU!$R, ,-. R$+MUN"O C. "E ' !!$, Petitioners, vs. REPU(! C O# THE PH ! PP NES, Respondent. / G(ERTO E. T$0$"$, OSC$R #. S$NTOS, SUR G$O "E! SUR #E"ER$T ON O# $GR CU!TUR$! COOPER$T 'ES %SU#$C& ,-. MORO #$RMERS $SSOC $T ON O# *$M(O$NG$ "E! SUR %MO#$*S&, represe-te. b1 ROMEO C. RO+$N"O+$N, Intervenors. x-----------------------x G.R. No. 178123 "$N !O (. URSU$, Petitioner, vs. REPU(! C O# THE PH ! PP NES, Respondent. RE !"#$I!N

'E!$SCO, )R., J.: %or consideration is a Motion for Reconsideration of the &ecision of the Court dated 'anuar( )*, )+,) interposed b( petitioners in -.R. Nos. ,../0.-0/, na1el(2 Philippine Coconut Producers %ederation, Inc. 3C!C!%E&4, Manuel 5. del Rosario, &o1in6o P. Espina, alvador P. Ballares, 'oselito A. Moraleda, Pa7 M. 8ason, 5icente A. Cadi7, Cesaria &e "una $itular, and Ra(1undo C. &e 5illa. !n March ,*, )+,), petitioner-1ovants filed a Manifestation and Motion statin6 that the( failed to include the !ffice of the olicitor -eneral 3! -4 in the list of persons to be furnished 9ith a cop( of the Motion for Reconsideration. $he( accordin6l( 1oved that their belated service of a cop( of the Motion for Reconsideration on the ! - be considered co1pliance 9ith the rules on service of 1otions for reconsideration. $his Court noted and accepted the Manifestation and Motion. !n March ,0, )+,), petitioner-1ovants filed a Me1orandu1 in support of the instant 1otion for reconsideration. $o the said 1otion, intervenors :i6berto E. $a;ada, et al. filed on 'une ,+, )+,) their Co11ent and !pposition. $he ! -, on the other hand, after filin6 t9o 1otions for extension on

Ma( )), )+,) and 'une ),, )+,), respectivel(, filed its Motion to Ad1it Co11ent, 9ith Co11ent attached, on 'ul( ,<, )+,). $his Court noted and ad1itted the Co11ent. As 9ill be recalled, the Court, in its 'anuar( )*, )+,) &ecision, affir1ed, 9ith 1odification, the Partial u11ar( 'ud61ents 3P 's4 rendered b( the andi6anba(an 3,4 on 'ul( ,,, )++< in Civil Case No. ++<<-A 3P '-A4, as a1ended b( a Resolution issued on 'une 0, )++.= and 3)4 on Ma( ., )++* in Civil Case No. ++<<-% 3P '-%4, as a1ended b( a Resolution issued on Ma( ,,, )++.. In this recourse, petitioner-1ovants ur6e the Court to reconsider its &ecision of 'anuar( )*, )+,) on the 6round that it2 ,. Made erroneous findin6s of fact= ). Erred in affir1in6 the andi6anba(an>s ?urisdiction of the sub?ect 1atter of the subdivided a1ended co1plaints= <. Erred in rulin6 that due process 9as not violated= *. Erred in rulin6 on the constitutionalit( of the coconut lev( la9s= 0. Erred in rulin6 that the !perative %act &octrine does not appl(= and @. Erred in rulin6 that the ri6ht to speed( disposition of cases 9as not violated. $he instant 1otion is but a 1ere reiteration or rehash of the ar6u1ents that have alread( been previousl( pleaded, discussed and resolved b( this Court in its 'anuar( )*, )+,) &ecision. And considerin6 that the 1otion>s ar6u1ents are unsubstantial to 9arrant a reconsideration or at least a 1odification, this Court finds no reason to 1odif( or let alone reverse the challen6ed &ecision. As of ,A/<,, the Class A and B an Mi6uel Corporation 3 MC4 co11on shares in the na1es of the ,* CII% Boldin6 Co1panies are <<,,<<,)@@ shares. %ro1 ,A/< to Nove1ber ,A, )++A 9hen the Republic of the Philippines representin6 the Presidential Co11ission on -ood -overn1ent 3PC--4 filed the CMotion $o Approve ale of CII% MC eries I Preferred hares,C the co11on shares of the CII% Boldin6 co1panies increased to .0<,/*/,<,) Class A and B MC co11on shares.) !9in6, ho9ever, to a certain develop1ent that altered the factual situation then obtainin6 in -.R. Nos. ,../0.-0/, there is, therefore, a co1pellin6 need to clarif( the fallo of the 'anuar( )*, )+,) &ecision to reconcile it, vis-a-vis the shares of stocDs in MC 9hich 9ere declared o9ned b( the -overn1ent, 9ith this develop1ent. :e refer to the Resolution < issued b( the Court on epte1ber ,., )++A in the then consolidated cases docDeted as -.R. Nos. ,../0.0/, -.R. No. ,./,A< and -.R. No. ,/+.+0. In that Resolution 9hich has lon6 beco1e final and executor(, the Court, upon 1otion of C!C!%E& and 9ith the approval of the Presidential Co11ission on -ood -overn1ent, 6ranted the conversion of .0<,/*/,<,) Class CAC and Class

CBC MC co11on shares re6istered in the na1e of the CII% co1panies to MC eries , Preferred hares of .0<,/*/,<,), sub?ect to certain ter1s and conditions. $he dispositive portion of the afore1entioned Resolution states2 :BERE%!RE, the Court APPR!5E the conversion of the .0<,/*/,<,) MC Co11on hares re6istered in the na1e of CII% co1panies to MC ERIE , PRE%ERRE& BARE of .0<,/*/,<,), the converted shares to be re6istered in the na1es of CII% co1panies in accordance 9ith the ter1s and conditions specified in the conversion offer set forth in MC>s Infor1ation tate1ent and appended as Annex CAC of C!C!%E&>s #r6ent Motion to Approve the Conversion of the CII% MC Co11on hares into MC eries , Preferred hares. $he preferred shares shall re1ain in custodia le6is and their o9nership shall be sub?ect to the final o9nership deter1ination of the Court. #ntil the o9nership issue has been resolved, the preferred shares in the na1e of the CII% co1panies shall be placed under seEuestration and PC-- 1ana6e1ent. 3E1phasis added.4 $he net dividend earnin6s andFor rede1ption proceeds fro1 the eries , Preferred hares shall be deposited in an escro9 account 9ith the "and BanD of the Philippines or the &evelop1ent BanD of the Philippines. Respondent Republic, thru the PC--, is hereb( directed to cause the CII% co1panies, includin6 their respective directors, officers, e1plo(ees, a6ents, and all other persons actin6 in their behalf, to perfor1 such acts and execute such docu1ents as reEuired to effectuate the conversion of the co11on shares into MC eries , Preferred hares, 9ithin ten 3,+4 da(s fro1 receipt of this Resolution. !nce the conversion is acco1plished, the MC Co11on hares previousl( re6istered in the na1es of the CII% co1panies shall be released fro1 seEuestration. ! !R&ERE&.* $he CII% blocD of MC shares, as converted, is the sa1e shares of stocDs that are sub?ect 1atter of, and declared as o9ned b( the -overn1ent in, the 'anuar( )*, )+,) &ecision. Bence, the need to clarif(. :BERE%!RE, the Court resolves to &EN8 9ith %INA"I$8 the instant Motion for Reconsideration dated %ebruar( ,*, )+,) for lacD of 1erit. $he Court further resolves to C"ARI%8 that the .0<,/*/,<,) MC eries , preferred shares of the CII% co1panies converted fro1 the CII% blocD of MC shares, 9ith all the dividend earnin6s as 9ell as all incre1ents arisin6 fro1, but not li1ited to, the exercise of pree1ptive ri6hts sub?ect of the epte1ber ,., )++A Resolution, shall no9 be the sub?ect 1atter of the 'anuar( )*, )+,) &ecision and shall be declared o9ned b( the -overn1ent and be used onl( for the benefit of all coconut far1ers and for the develop1ent of the coconut industr(. As 1odified, the fallo of the 'anuar( )*, )+,) &ecision shall read, as follo9s2

:BERE%!RE, the petitions in -.R. Nos. ,../0.-0/ and ,./.A< are hereb( &ENIE&. $he Partial u11ar( 'ud61ent dated 'ul( ,,, )++< in Civil Case No. ++<<-A as reiterated 9ith 1odification in Resolution dated 'une 0, )++., as 9ell as the Partial u11ar( 'ud61ent dated Ma( ., )++* in Civil Case No. ++<<-%, 9hich 9as effectivel( a1ended in Resolution dated Ma( ,,, )++., are A%%IRME& 9ith M!&I%ICA$I!N, onl( 9ith respect to those issues sub?ect of the petitions in -.R. Nos. ,../0.-0/ and ,./,A<. Bo9ever, the issues raised in -.R. No. ,/+.+0 in relation to Partial u11ar( 'ud61ent dated 'ul( ,,, )++< and Resolution dated 'une 0, )++. in Civil Case No. ++<<-A, shall be decided b( this Court in a separate decision. $he Partial u11ar( 'ud61ent in Civil Case No. ++<<-A dated 'ul( ,,, )++<, is hereb( M!&I%IE&, and shall read as follo9s2 :BERE%!RE, in vie9 of the fore6oin6, :e rule as follo9s2 #MMAR8 !% $BE C!#R$> R#"IN-. A. Re2 C"A AC$I!N M!$I!N %!R A EPARA$E #MMAR8 '#&-MEN$ dated April ,,, )++, filed b( &efendant Maria Clara ". "obre6at, C!C!%E&, et al., and Ballares, et al. $he Class Action Motion for eparate u11ar( 'ud61ent dated April ,,, )++, filed b( defendant Maria Clara ". "obre6at, C!C!%E&, et al. and Ballares, et al., is hereb( &ENIE& for lacD of 1erit. B. Re2 M!$I!N %!R PAR$IA" #MMAR8 '#&-MEN$ 3RE2 C!C!%E&, E$ A". AN& BA""ARE , E$ A".4 dated April )), )++) filed b( Plaintiff. ,. a. $he portion of ection , of P.&. No. .00, 9hich reads2 Gand that the Philippine Coconut Authorit( is hereb( authori7ed to distribute, for free, the shares of stocD of the banD it acEuired to the coconut far1ers under such rules and re6ulations it 1a( pro1ul6ate. taDen in relation to ection ) of the sa1e P.&., is unconstitutional2 3i4 for havin6 allo9ed the use of the CC % to benefit directl( private interest b( the outri6ht and unconditional 6rant of absolute o9nership of the %#BF#CPB shares paid for b( PCA entirel( 9ith the CC % to the undefined Ccoconut far1ersC, 9hich ne6ated or circu1vented the national polic( or public purpose declared b( P.&. No. .00 to accelerate the 6ro9th and develop1ent of the coconut industr( and achieve its vertical inte6ration= and 3ii4 for havin6 undul( dele6ated le6islative po9er to the PCA. b. $he i1ple1entin6 re6ulations issued b( PCA, na1el(, Ad1inistrative !rder No. ,, eries of ,A.0 and Resolution No. +.*-./ are liDe9ise invalid for their failure to see to it that the distribution of shares serve exclusivel( or at least pri1aril( or directl( the afore1entioned public purpose or national polic( declared b( P.&. No. .00. ). ection ) of P.&. No. .00 9hich 1andated that the coconut lev( funds shall not be considered special andFor fiduciar( funds nor part of the 6eneral funds of the national 6overn1ent and si1ilar provisions of ec. 0, Art. III, P.&. No. A@, and ec. 0, Art. III, P.&. No.

,*@/ contravene the provisions of the Constitution, particularl(, Art. IH 3&4, ec. )= and Article 5I, ec. )A 3<4. <. "obre6at, C!C!%E&, et al. and Ballares, et al. have not le6all( and validl( obtained title of o9nership over the sub?ect #CPB shares b( virtue of P.&. No. .00, the A6ree1ent dated Ma( )0, ,A.0 bet9een the PCA and defendant Co?uan6co, and PCA i1ple1entin6 rules, na1el(, Ad1. !rder No. ,, s. ,A.0 and Resolution No. +.*-./. *. $he so-called C%ar1ers> #CPB sharesC covered b( @*.A/I of the #CPB shares of stocD, 9hich for1ed part of the .).)I of the shares of stocD of the for1er %#B and no9 of the #CPB, the entire consideration of 9hich 9as char6ed b( PCA to the CC %, are hereb( declared conclusivel( o9ned b(, the Plaintiff Republic of the Philippines. xxx xxx xxx

! !R&ERE&. $he Partial u11ar( 'ud61ent in Civil Case No. ++<<-% dated Ma( ., )++*, is hereb( M!&I%IE&, and shall read as follo9s2 :BERE%!RE, the M!$I!N %!R EHEC#$I!N !% PAR$IA" #MMAR8 '#&-MEN$ 3RE2 CII% B"!CJ !% MC BARE !% $!CJ4 dated Au6ust /, )++0 of the plaintiff is hereb( denied for lacD of 1erit. Bo9ever, this Court orders the severance of this particular clai1 of Plaintiff. $he Partial u11ar( 'ud61ent dated Ma( ., )++* is no9 considered a separate final and appealable ?ud61ent 9ith respect to the said CII% BlocD of MC shares of stocD.1wphi1 $he Partial u11ar( 'ud61ent rendered on Ma( ., )++* is 1odified b( deletin6 the last para6raph of the dispositive portion, 9hich 9ill no9 read, as follo9s2 :BERE%!RE, in vie9 of the fore6oin6, 9e hold that2 $he Motion for Partial u11ar( 'ud61ent 3Re2 &efendants CII% Co1panies, ,* Boldin6 Co1panies and Cocofed, et al4 filed b( Plaintiff is hereb( -RAN$E&. ACC!R&IN-"8, $BE CII% C!MPANIE , NAME"82 ,. outhern "u7on Coconut !il Mills 3 !"C!M4= ). Ca6a(an de !ro !il Co., Inc. 3CA-!I"4= <. Ili6an Coconut Industries, Inc. 3I"IC!C!4= *. an Pablo Manufacturin6 Corp. 3 PMC4= 0. -ranexport Manufacturin6 Corp. 3-RANEH4= and @. "e6aspi !il Co., Inc. 3"E-!I"4, A :E"" A $BE ,* B!"&IN- C!MPANIE , NAME"82 ,. oriano hares, Inc.=

). AC Investors, Inc.= <. Roxas hares, Inc.= *. Arc Investors= Inc.= 0. $oda Boldin6s, Inc.= @. AP Boldin6s, Inc.= .. %ernande7 Boldin6s, Inc.= /. MC !fficers Corps, Inc.= A. $e &eu1 Resources, Inc.= ,+. An6lo 5entures, Inc.= ,,. Rand( Allied 5entures, Inc.= ,). RocD teel Resources, Inc.= ,<. 5alhalla Properties "td., Inc.= and ,*. %irst Meridian &evelop1ent, Inc. AN& $BE C!N5ER$E& MC ERIE , PRE%ERRE& BARE $!$A"IN- .0<,/*/,<,) BARE #B'EC$ !% $BE RE !"#$I!N !% $BE C!#R$ &A$E& EP$EMBER ,., )++A $!-E$BER C:I$B A"" &I5I&EN& &EC"ARE&, PAI& !R I #E&$BERE!N A%$ER $BA$ &A$E, A :E"" A AN8 INCREMEN$ $BERE$! ARI IN- %R!M, B#$ N!$ "IMI$E& $!, EHERCI E !% PRE-EMP$I5E RI-B$ ARE &EC"ARE& !:NE& B8 $BE -!5ERNMEN$ $! RE # E& !N"8 %!B $BE BENE%I$ !% A"" C!C!N#$ %ARMER AN& %!R $BE &E5E"!PMEN$ !% $BE C!C!N#$ IN&# $R8. AN& !R&ERE& BEC!N5E8E& $! $BE -!5ERNMEN$. $BE C!#R$ A%%IRMI $BE RE !"#$I!N I #E& B8 $BE AN&I-ANBA8AN !N '#NE 0, )++. IN CI5I" CA E N!. ++<<-A AN& !N MA8 ,,, )++. IN CI5I" CA E N!. ++<<-%, $BA$ $BERE I N! M!RE NECE I$8 !% %#R$BER $RIA" :I$B RE PEC$ $! $BE I #E !% !:NER BIP !% 3,4 $BE EK#E $ERE& #CPB BARE , 3)4 $BE CB% B"!CJ !% MC BARE AN& 3<4 $BE CII% C!MPANIE , A $BE8 BA5E %INA""8 BEEN A&'#&ICA$E& IN $BE A%!REMIEN$I!NE& PAR$IA" #MMAR8 '#&-MEN$ &A$E& '#"8 ,,, )++< AN& MA8 ., )++*. ! !R&ERE&. Costs a6ainst petitioners C!C!%E&, et al., in -.R. Nos. ,../0.-0/ and &anilo . #rsua in -.R. No. ,./,A<. No further pleadin6s shall be entertained. "et Entr( of 'ud61ent be 1ade in due course.

! !R&ERE&. PRES( TERO ). 'E!$SCO, )R. Associate 'ustice :E C!NC#R2 M$R $ !OUR"ES P. $. SERENO Chief 'ustice $NTON O T. C$RP O Associate 'ustice $RTURO ". (R ON Associate 'ustice !UC$S P. (ERS$M N Associate 'ustice RO(ERTO $. $($" Associate 'ustice )OSE PORTUG$! PERE* Associate 'ustice ( EN'EN "O !. RE+ES Associate 'ustice CER$I%ICA$I!N Pursuant to ection l<, Article 5III of the Constitution, it is hereb( certified that the conclusions in the above Resolution had been reached in consultation before the case 9as assi6ned to the 9riter of the opinion of the Court. M$R $ !OUR"ES P. $. SERENO Chief 'ustice TERES T$ ). !EON$R"O-"E C$STRO L Associate 'ustice " OS"$"O M. PER$!T$L Associate 'ustice M$R $NO C. "E! C$ST !!O Associate 'ustice M$RT N S. ' !!$R$M$, )R. Associate 'ustice )OSE C$TR$! MEN"O*$ Associate 'ustice ESTE!$ M. PER!$S-(ERN$(E Associate 'ustice

#oot-otes
L

No part.

Rollo 3-.R. Nos. ,../0.-0/4, 5ol. ,, p. *+*, Partial u11ar( 'ud61ent, Civil Case No. ++<<%.
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Id., 5ol. <, p. ))... @++ CRA ,+). Id. at ,*0-,*@.

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