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Court of Appeals
ISSUE: Whether or not to uphold a citizens basic due process rights or the
governments ironclad duties under a treaty.
In a situation, however, where the conflict is irreconcilable and a choice has to be made
between a rule of international law and a municipal law, jurisprudence dictates that
municipal law should be upheld by the municipal courts, for the reason that such courts
are organs of municipal law and are accordingly bound by it in all circumstances.
The fact that international law has been made part of the law of the land does not
pertain to or imply the primacy of international law over national or municipal law in the
municipal sphere. The doctrine of incorporation, as applied in most countries, decrees
that rules of international law are given equal standing with, but are not superior to,
national legislative enactments. Accordingly, the principle lex posterior derogate priori
takes effect a treaty may repeal a statute and a statute may repeal a treaty. In states
where the Constitution is the highest law of the land, such as the Republic of the
Philippines, both statutes and treaties may be invalidated if they are in conflict with the
constitution
MAKATI STOCK EXCHANGE INC VS SECGR NO. L-23004 JUNE 30,
1965BENGZON, CJ
This case s a review of the resolutions of the SEC which would deny the Makati Stock
Exchange Incpermission to operate a stock exchange unless it agreed not to list for
trading on its board, securitiesalready listed in Manila Stock Exchange.
MSEI contends that SEC has no power to impose such and that is illegal, discriminatory
and unjust.
Sec 17 of Commonwealth Act 83 provides nor shall a security already listed in any
securitie
s exchange e
listed anew in any other securities exchange
Manila Stock Exchange has been operating alone for the past 25 years and presumably
all available orworthwhile securities for trading in the market are already listed there.
SEC only wants MSEI to deal onlywith other securities. (store can only sell goods not
sold in other stores)
SECs order would make it impossible for MSEI to operate so it resulted in a prohibition.
SEC argued that it acted in the public interest because the operation of two or more
exchanges affectspublic interest.
AUTHORITY OF SEC
Administrative officer has only such powers as are expressly granted to him bystatute
and
those necessarily implied in the exercise thereof
.
o
Approved by the department head
ISSUES:
o
Whether the establishment of another exchange in the environs of manila would be
inimical tothe public interest.
o
Whether double or multiple listings of securities s
hould be prohibited for the protection of investors
A.) Encourage monopolies as oppose to promoting a healthy competition. The price in a
one on one salewould be higher due to fixed rates plus brokerage fee.
It is beneficial for public interest to have more than one stock exchange. AND the SEC
has no legalauthority to stifle free enterprise and individual liberty. The legislature has
specified the conditions underwhich a stock exchange may legally obtain a permit and it
is not for the commission to impose on others.If the existence of 2 or more competing
exchanges jeopardizes public interest it should be the Congressthat should act with the
recommendation of the SEC but the operation of exchanges should not be soregulated
as practically to create a monopoly by preventing the establishment of other stock
exchanges
and thereby contravening
o
MSEIs constitut
ional right to equality before the law
o
Granted civil liberty to pursue any lawful employment or trade
o
Investors right to choose where to buy or sell and his privilege to select the brokers in
his
employment.