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permanent position as Associate Commissioner. It is no less true, however, that she can be replaced
as Acting Chairman, with or without cause, and thus deprived of the powers and perquisites of that
temporary position.
The lack of a statutory rule covering the situation at bar is no justification for the President of the
Philippines to fill the void by extending the temporary designation in favor of the respondent. This is
still a government of laws and not of men. The problem allegedly sought to be corrected, if it existed
at all, did not call for presidential action. The situation could have been handled by the members of
the Commission on Elections themselves without the participation of the President, however wellmeaning.
In the choice of the Acting Chairman, the members of the Commission on Elections would most likely
have been guided by the seniority rule as they themselves would have appreciated it. In any event,
that choice and the basis thereof were for them and not the President to make.
The Court has not the slightest doubt that the President of the Philippines was moved only by the best
of motives when she issued the challenged designation. But while conceding her goodwill, we cannot
sustain her act because it conflicts with the Constitution. Hence, even as this Court revoked the
designation in the Bautista case, so too must it annul the designation in the case at bar.
The Constitution provides for many safeguards to the independence of the Commission on Elections,
foremost among which is the security of tenure of its members. That guaranty is not available to the
respondent as Acting Chairman of the Commission on Elections by designation of the President of the
Philippines.
WHEREFORE, the designation by the President of the Philippines of respondent Haydee B. Yorac as
Acting Chairman of the Commission on Elections is declared UNCONSTITUTIONAL, and the respondent
is hereby ordered to desist from serving as such. This is without prejudice to the incumbent Associate
Commissioners of the Commission on Elections restoring her to the same position if they so desire, or
choosing another member in her place, pending the appointment of a permanent Chairman by the
President of the Philippines with the consent of the Commission on Appointments.: rd
SO ORDERED.
Fernan C . J., Narvasa, Melencio-Herrera, Gutierrez, Jr., Paras, Gancayco, Padilla, Bidin,
Grio-Aquino, Medialdea and Regalado, JJ., concur.
Feliciano, J., is on leave.
Sarmiento, J., took no part.
EN BANC
duty resulting from an office, trust, or station. [6] We have held that to be given due course, a
petition for mandamus must have been instituted by a party aggrieved by the alleged
inaction of any tribunal, corporation, board or person which unlawfully excludes said party
from the enjoyment of a legal right. The petitioner in every case must therefore be an
aggrieved party in the sense that he possesses a clear legal right to be enforced and a direct
interest in the duty or act to be performed. [7] The Court will exercise its power of judicial
review only if the case is brought before it by a party who has the legal standing to raise the
constitutional or legal question. Legal standing means a personal and substantial interest in
the case such that the party has sustained or will sustain direct injury as a result of the
government act that is being challenged. The term interest is material interest, an interest in
issue and to be affected by the decree, as distinguished from mere interest in the question
involved, or a mere incidental interest. [8]
The petition at bar was filed by Senator Aquilino Pimentel, Jr. who asserts his legal standing
to file the suit as member of the Senate; Congresswoman Loretta Ann Rosales, a member of
the House of Representatives and Chairperson of its Committee on Human Rights; the
Philippine Coalition for the Establishment of the International Criminal Court which is
composed of individuals and corporate entities dedicated to the Philippine ratification of the
Rome Statute; the Task Force Detainees of the Philippines, a juridical entity with the avowed
purpose of promoting the cause of human rights and human rights victims in the country;
the Families of Victims of Involuntary Disappearances, a juridical entity duly organized and
existing pursuant to Philippine Laws with the avowed purpose of promoting the cause of
families and victims of human rights violations in the country; Bianca Hacintha Roque and
Harrison Jacob Roque, aged two (2) and one (1), respectively, at the time of filing of the
instant petition, and suing under the doctrine of inter-generational rights enunciated in the
case of Oposa vs. Factoran, Jr.;[9] and a group of fifth year working law students from the
University of the Philippines College of Law who are suing as taxpayers.
The question in standing is whether a party has alleged such a personal stake in the
outcome of the controversy as to assure that concrete adverseness which sharpens the
presentation of issues upon which the court so largely depends for illumination of difficult
constitutional questions.[10]
We find that among the petitioners, only Senator Pimentel has the legal standing to file the
instant suit. The other petitioners maintain their standing as advocates and defenders of
human rights, and as citizens of the country. They have not shown, however, that they have
sustained or will sustain a direct injury from the non-transmittal of the signed text of the
Rome Statute to the Senate. Their contention that they will be deprived of their remedies for
the protection and enforcement of their rights does not persuade. The Rome Statute is
intended to complement national criminal laws and courts. Sufficient remedies are available
under our national laws to protect our citizens against human rights violations and
petitioners can always seek redress for any abuse in our domestic courts.
As regards Senator Pimentel, it has been held that to the extent the powers of
Congress are impaired, so is the power of each member thereof, since his office confers a
right to participate in the exercise of the powers of that institution. [11] Thus, legislators have
the standing to maintain inviolate the prerogatives, powers and privileges vested by the
Constitution in their office and are allowed to sue to question the validity of any official
action which they claim infringes their prerogatives as legislators. The petition at bar invokes
the power of the Senate to grant or withhold its concurrence to a treaty entered into by the
executive branch, in this case, the Rome Statute. The petition seeks to order the executive
branch to transmit the copy of the treaty to the Senate to allow it to exercise such authority.
Senator Pimentel, as member of the institution, certainly has the legal standing to assert
such authority of the Senate.
of ratification of treaties would be pointless and futile. It has been held that a state has no
legal or even moral duty to ratify a treaty which has been signed by its plenipotentiaries.
[18]
There is no legal obligation to ratify a treaty, but it goes without saying that the refusal
must be based on substantial grounds and not on superficial or whimsical reasons.
Otherwise, the other state would be justified in taking offense. [19]
It should be emphasized that under our Constitution, the power to ratify is vested in the
President, subject to the concurrence of the Senate. The role of the Senate, however, is
limited only to giving or withholding its consent, or concurrence, to the ratification. [20] Hence,
it is within the authority of the President to refuse to submit a treaty to the Senate or, having
secured its consent for its ratification, refuse to ratify it. [21] Although the refusal of a state to
ratify a treaty which has been signed in its behalf is a serious step that should not be taken
lightly,[22] such decision is within the competence of the President alone, which cannot be
encroached by this Court via a writ of mandamus. This Court has no jurisdiction over actions
seeking to enjoin the President in the performance of his official duties. [23] The Court,
therefore, cannot issue the writ of mandamus prayed for by the petitioners as it is beyond its
jurisdiction to compel the executive branch of the government to transmit the signed text of
Rome Statute to the Senate.
IN VIEW WHEREOF, the petition is DISMISSED.
SO ORDERED.
REYNATO S. PUNO
Associate Justice
WE CONCUR:
HILARIO G. DAVIDE, JR.
Chief Justice
ARTEMIO V. PANGANIBAN LEONARDO A. QUISUMBING
Associate Justice Associate Justice
(on official leave)
CONSUELO YNARES-SANTIAGO ANGELINA SANDOVAL-GUTIERREZ
Associate Justice Associate Justice
(on official leave)
ANTONIO T. CARPIO MA. ALICIA AUSTRIA-MARTINEZ
Associate Justice Associate Justice
(on official leave)
RENATO C. CORONA CONCHITA CARPIO MORALES
Associate Justice Associate Justice
ROMEO J. CALLEJO, SR. ADOLFO S. AZCUNA
Associate Justice Associate Justice
DANTE O. TINGA MINITA V. CHICO-NAZARIO
Associate Justice Associate Justice
CANCIO C. GARCIA
Associate Justice
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution, it is hereby certified that the
conclusions in the above Decision were reached in consultation before the case was
assigned to the writer of the opinion of the Court.
On official leave.
[1]
[2]
[3]
[4]
[5]
[6]
EN BANC
[G.R. No. L-4221. August 30, 1952.]
MARCELO D. MONTENEGRO, Petitioner-Appellant, v. GEN. MARIANO CASTAEDA
and COLONEL EULOGIO BALAO, Respondents-Appellees.
Felixberto M. Serrano and Honorio Ilagan for Appellant.
Solicitor General Pompeyo Diaz and Solicitor Felix V. Makasiar for Appellees.
Jesus G. Barrera, Francisco A. Rodrigo, Enrique Fernando and Claudio Teehankee as
amici curiae.
SYLLABUS
1. CONSTITUTIONAL LAW; EX POST FACTO LAWS. The constitutional prohibition against bills
of attainder or ex post facto laws applies only to statutes.
2. HABEAS CORPUS; SUSPENSION THEREOF; PROCLAMATION NO. 210; SEDITION, NOT
INCLUDED THEREIN. The stay of the privilege of the writ of habeas corpus, ordered in
Proclamation No. 210, is in accordance with the powers expressly vested in the President by
the Constitution. However, the word "sedition" in Proclamation No. 210 should be deemed a
mistake or surplusage that does not taint the decree as a whole.
3. ID.; ID. The president has power to suspend the privilege of the writ of habeas corpus,
when public safety requires it, in cases of (1) invasion, (2) insurrection, (3) rebellion, or (4)
imminent danger thereof. The official declaration that "there is actual danger of rebellion
which may extend throughout the country" amply justifies the suspension of the writ.
4. ID.; ID.; CONCLUSIVENESS. The Presidents declaration about the existence of danger is
conclusive upon the courts.
5. ID.; ID.; EFFECT OF SUSPENSION ON CASES FILED BEFORE THE PROCLAMATION. A
proclamation of the President suspending the writ of habeas corpus is valid and efficient in
law to suspend all proceedings pending upon habeas corpus.
6. ID.; ID.; EVIDENCE OF THE FACTS STATED IN THE PETITION. In habeas corpus cases,
averments of facts in the return, in the absence of denial or appropriate pleading avoiding
their effect, will be taken as true and conclusive, regardless of the allegations contained in
the petition.
DECISION
BENGZON, J.:
The purpose of this appeal from the Court of First Instance of Quezon City is to test the
validity of Proclamation No. 210 suspending the privilege of the writ of habeas corpus.
A few months ago the same proclamation came up for discussion in connection with the
request for bail of some prisoners charged with rebellion. 1 The divided opinion of this Court
did not squarely pass on the validity of the proclamation; but, assuming it was obligatory,
both sides proceeded to determine its effect upon the right of such prisoners to go on bail.
This decision will now consider the points debated regarding the aforesaid presidential order.
The facts are few and simple: About five oclock in the morning of October 18, 1950,
Maximino Montenegro was arrested with others at the Samanillo Bldg., Manila, by agents of
the Military Intelligence Service of the Armed Forces of the Philippines, for complicity with a
communistic organization in the commission of acts of rebellion, insurrection or sedition. So
far as the record discloses, he is still under arrest in the custody of respondents. On October
22, 1950, the President issued Proclamation No. 210 suspending the privilege of the writ
of habeas corpus. On October 21, 1950, Maximinos father, the petitioner, submitted this
application for a writ of habeas corpus seeking the release of his son.
Opposing the writ, respondents admitted having the body of Maximino, but questioned
judicial authority to go further in the matter, invoking the above-mentioned proclamation.
Petitioner replied that such proclamation was void, and that, anyway, it did not apply to his
son, who had been arrested before its promulgation. Heeding the suspension order, the court
of first instance denied the release prayed for. Hence this appeal, founded mainly on the
petitioners propositions:chanrob1es virtual 1aw library
(a) The proclamation is unconstitutional "because it partakes of a bill of attainder, or an ex
post facto law; and unlawfully includes sedition which under the Constitution is not a ground
for suspension" ;
(b) "There is no state of invasion, insurrection or rebellion, or imminent danger thereof," the
only situations permitting discontinuance of the writ of habeas corpus; showing was made
that the petitioners son was included within the terms thereof.
(c) Supposing the proclamation is valid, no prima facie
Proclamation No. 210 reads partly as follows:jgc:chanrobles.com.ph
"WHEREAS, lawless elements of the country have committed overt acts of sedition,
insurrection and rebellion for the purpose of overthrowing the duly constituted authorities
and, in pursuance thereof, have created a state of lawlessness and disorder affecting public
safety and the security of the state;
"WHEREAS, these acts of sedition, insurrection and rebellion consisting of armed raids,
sorties and ambushes and the wanton acts of murder, rape, spoilage, looting, arson, planned
destruction of public and private buildings, and attacks against police and constabularly
detachments, as well as against civilian lives and properties, as reported by the Commanding
General of the Armed Forces, have seriously endangered and still continue to endanger the
public safety;
"WHEREAS, these acts of sedition, insurrection and rebellion have been perpetrated by
various groups of persons well organized for concerted action and well armed with machine
guns, rifles, pistols and other automatic weapons, by reason whereof there is actual danger
of rebellion which may extend throughout the country;
"WHEREAS, 100 leading members of these lawless elements have been apprehended and are
presently under detention, and strong and convincing evidence has been found in their
possession to show that they are engaged in rebellious, seditious and otherwise subversive
acts as above set forth; and
"WHEREAS, public safety requires that immediate and effective action be taken to insure the
peace and security of the population and to maintain the authority of the government;
"NOW, THEREFORE, I, ELPIDIO QUIRINO, President of the Philippines, by virtue of the powers
vested upon me by article VII, section 10, paragraph (2) of the Constitution, do hereby
suspend the privilege of the writ of habeas corpus for the persons presently detained, as well
as all others who may be hereafter similarly detained for the crimes of sedition, insurrection
or rebellion, and all other crimes and offenses committed by them in furtherance or on the
occasion thereof, or incident thereto, or in connection therewith."cralaw virtua1aw library
A. t is first argued that the proclamation is invalid because it "partakes" of a bill of attainder
or an ex post facto law, and violates the constitutional precept that no bill of attainder or ex
post facto law shall be passed. The argument is devoid of merit. The prohibition applies only
to statutes. U. S. v. Gen. El., 80 Fed. Supp. 989; De Pass v. Bidwell, 124 Fed., 615. 1 A bill of
attainder is a legislative act which inflicts punishment without judicial trial. (16 C. J. S. p. 902;
U. S. v. Lovett (1946) 328 U. S. 303). Anyway, if, as we find, the stay of the writ was ordered
in accordance with the powers expressly vested in the President by the Constitution, such
order must be deemed an exception to the general prohibition against ex post facto laws and
bills of attainder supposing there is a conflict between the prohibition and the suspension.
On the other hand there is no doubt it was erroneous to include those accused of sedition
among the persons as to whom suspension of the writ is decreed. Under the Constitution the
only grounds for suspension of the privilege of the writ are "invasion, insurrection, rebellion or
imminent danger thereof." Obviously, however, the inclusion of sedition does not invalidate
the entire proclamation; and it is immaterial in this case, inasmuch as the petitioners
descendant is confined in jail not only for sedition, but for the graver offense of rebellion and
insurrection. Without doing violence to the presidential directive, but in obedience to the
supreme law of the land, the word "sedition" in Proclamation No. 210 should be deemed a
mistake or surplusage that does not taint the decree as a whole.
B. In his second proposition appellant insists there is no state of invasion, insurrection,
rebellion or imminent danger thereof. "There are" he admits "intermittent sorties and
lightning attacks by organized bands in different places" ; but, he argues, "such sorties are
occasional, localized and transitory. And the proclamation speaks no more than of overt acts
of insurrection and rebellion, not of cases of invasion, insurrection or rebellion or imminent
danger thereof." On this subject it is noted that the President concluded from the facts recited
in the proclamation, and others connected therewith, that "there is actual danger of rebellion
which may extend throughout the country." Such official declaration implying much more
than imminent danger of rebellion amply justifies the suspension of the writ.
To the petitioners unpracticed eye the repeated encounters between dissident elements and
military troops may seem sporadic, isolated, or casual. But the officers charged with the
Nations security, analyzed the extent and pattern of such violent clashes and arrived at the
conclusion that they are warp and woof of a general scheme to overthrow this government vi
spoke against the amendment alleging that it would be dangerous to make imminent danger
a ground for the suspension of the writ of habeas corpus. In part, he
said:jgc:chanrobles.com.ph
"Gentlemen, this phrase is too ambiguous, and in the hands of a President who believes
more or less a dictator, it is extremely dangerous; it would be a sword with which he would
behead us.
"In defense of the amendment, Delegate Francisco pointed out that it was intended to make
this part of the bill of rights conform to that part of the draft giving the President the power to
suspend the writ of habeas corpus also in the case of an imminent danger of invasion or
rebellion. When asked by Delegate Rafols if the phrase, imminent danger, might not be
struck out from the corresponding provision under the executive power instead, Delegate
Francisco answered:jgc:chanrobles.com.ph
"Outright, it is possible to eliminate the phrase, imminent danger thereof, in the page I have
mentioned. But I say, going to the essence and referring exclusively to the necessity of
including the words, of imminent danger of one or the other, I wish to say the following: that
it should not be necessary that there exists a rebellion, insurrection, or invasion in order
that habeas corpus may be suspended. It should be sufficient that there exists not a danger
but an imminent danger, and the word, imminent, should be maintained. When there exists
an imminent danger, the State requires for its protection and for that of all the citizens the
suspension of habeas corpus.
"When put to vote for the second time, the amendment was defeated with 72 votes against
and 56 votes in favor of the same." (I Aruegos Framing of the Philippine Constitution, pp.
180-181)
Nevertheless when the Presidents specific powers under Article VII, were taken up, there was
no objection to his authority to suspend in case of "imminent danger." (At least we are not
informed of any debate thereon.) Now then, what is the effect of the seeming discrepancy?.
Is the prohibition of suspension in the bill of rights to be interpreted as limiting Legislative
powers only - not executive measures under section VII? Has Article VII (sec. 10) pro tanto
modified the bill of rights in the same manner that a subsequent section of a statute modifies
a previous one?.
The difference between the two constitutional provisions would seem to be: whereas the bill
of rights impliedly denies suspension in case of imminent danger of invasion etc., Article VII
sec. 10 expressly authorizes the President to suspend when there is imminent danger of
invasion etc.
The following statements in a footnote in Cooleys Constitutional limitations (8th Ed.) p. 129,
appear to be persuasive:jgc:chanrobles.com.ph
"It is a general rule in the construction of writings, that, a general intent appearing, it shall
control the particular intent; but this rule must sometimes give way, and effect must be given
to a particular intent plainly expressed in one part of a constitution, though apparently
opposed to a general intent deduced from other parts. Warren V. Shuman, 5 Tex. 441. In
Quick V. Whitewater Township, 7 Ind. 570, it was said that if two provisions of a written
constitution are irreconcilably repugnant, that which is last in order of time and in local
position is to be preferred. In Gulf, C. & S. F. Ry. Co. v. Rambolt, 67 Tex. 654, 4 S. W. 356, this
rule was recognized as a last resort, but if the last provision is more comprehensive and
specific, it was held that it should be given effect on that ground."cralaw virtua1aw library
And in Hoag v. Washington Oregon Corp. (1915) 147 Pac. Rep., 756 at p. 763 it was
said:jgc:chanrobles.com.ph
"It is a familiar rule of construction that, where two provisions of a written Constitution are
repugnant to each other, that which is last in order of time and in local position is to be
preferred. Quick v. White Water Township, 7 Ind. 570; G., C. & S. F. Ry. Co. v. Rambolt, 67 Tex.
654, 4 S. W. 356. So, even assuming the two clauses discussed are repugnant, the latter
must prevail."cralaw virtua1aw library
Wherefore in the light of these precedents, the constitutional authority of the President to
suspend in case of imminent danger of invasion, insurrection or rebellion under Article VII
may not correctly be placed in doubt.
E. The petitioner insisted in the court below that the suspension should not apply to his son,
because the latter had been arrested and had filed the petition before the Executive
proclamation. On this phase of the controversy, it is our opinion that the order of suspension
affects the power of the courts and operates immediately on all petitions therein pending at
the time of its promulgation.
"A proclamation of the President suspending the writ of habeas corpus was held valid and
efficient in law to suspend all proceedings pending upon habeas corpus, which was issued
and served prior to the date of the proclamation. Matter of Dunn, D. C. N. Y. 1863, 25 How.
Prac. 467, Fed. Cas. No. 4,171."cralaw virtua1aw library
F. Premises considered, the decision of the court a quo refusing to release the prisoner is
affirmed, without costs.
Paras, C.J., Pablo, Padilla, Montemayor, Bautista Angelo and Labrador, JJ., concur.
Endnotes:
1. Hernandez v. Montesa, G. R. No. L-4964, Nava v. Gatmaitan, G. R. No. L-4855, Angeles v. Abaya, G. R. No. L-5102,
October, 1951. (90 Phil. 172).
1. Cf. Calder v. Bull, 3 Dall U. S. 386, 1 Law Ed. 648.
March 6, 2006
NOGCCI owned by private respondent Benedicto and registered in his name or under the
names of corporations he owned or controlled.
Following the sequestration process, PCGG representatives sat as members of the Board of
Directors of NOGCCI, which passed, sometime in October 1986, a resolution effecting a
corporate policy change. The change consisted of assessing a monthly membership due
of P150.00 for each NOGCCI share. Prior to this resolution, an investor purchasing more than
one NOGCCI share was exempt from paying monthly membership due for the second and
subsequent shares that he/she owned.
Subsequently, on March 29, 1987, the NOGCCI Board passed another resolution, this time
increasing the monthly membership due from P150.00 to P250.00 for each share.
As sequestrator of the 227 shares of stock in question, PCGG did not pay the corresponding
monthly membership due thereon totaling P2,959,471.00. On account thereof, the 227
sequestered shares were declared delinquent to be disposed of in an auction sale.
Apprised of the above development and evidently to prevent the projected auction sale of
the same shares, PCGG filed a complaint for injunction with the Regional Trial Court (RTC) of
Bacolod City, thereat docketed as Civil Case No. 5348. The complaint, however, was
dismissed, paving the way for the auction sale for the delinquent 227 shares of stock. On
August 5, 1989, an auction sale was conducted.
On November 3, 1990, petitioner Republic and private respondent Benedicto entered into a
Compromise Agreement in Civil Case No. 0034. The agreement contained a general release
clause5 whereunder petitioner Republic agreed and bound itself to lift the sequestration on
the 227 NOGCCI shares, among other Benedictos properties, petitioner Republic
acknowledging that it was within private respondent Benedictos capacity to acquire the
same shares out of his income from business and the exercise of his profession. 6 Implied in
this undertaking is the recognition by petitioner Republic that the subject shares of stock
could not have been ill-gotten.
In a decision dated October 2, 1992, the Sandiganbayan approved the Compromise
Agreement and accordingly rendered judgment in accordance with its terms.
In the process of implementing the Compromise Agreement, either of the parties would,
from time to time, move for a ruling by the Sandiganbayan on the proper manner of
implementing or interpreting a specific provision therein.
On February 22, 1994, Benedicto filed in Civil Case No. 0034 a "Motion for Release from
Sequestration and Return of Sequestered Shares/Dividends" praying, inter alia, that his
NOGCCI shares of stock be specifically released from sequestration and returned, delivered
or paid to him as part of the parties Compromise Agreement in that case. In a
Resolution7 promulgated on December 6, 1994, the Sandiganbayan granted Benedictos
aforementioned motion but placed the subject shares under the custody of its Clerk of Court,
thus:
WHEREFORE, in the light of the foregoing, the said "Motion for Release From Sequestration
and Return of Sequestered Shares/Dividends" is hereby GRANTED and it is directed that said
shares/dividends be delivered/placed under the custody of the Clerk of Court,
Sandiganbayan, Manila subject to this Courts disposition.
On March 28, 1995, the Sandiganbayan came out with the herein first assailed
Resolution,8 which clarified its aforementioned December 6, 1994 Resolution and directed
the immediate implementation thereof by requiring PCGG, among other things:
(b) To deliver to the Clerk of Court the 227 sequestered shares of [NOGCCI] registered in the
name of nominees of ROBERTO S. BENEDICTO free from all liens and encumbrances, or in
default thereof, to pay their value at P150,000.00 per share which can be deducted from
[the Republics] cash share in the Compromise Agreement. [Words in bracket added]
(Emphasis Supplied).
Owing to PCGGs failure to comply with the above directive, Benedicto filed in Civil Case No.
0034 a Motion for Compliance dated July 25, 1995, followed by an Ex-Parte Motion for Early
Resolution dated February 12, 1996. Acting thereon, the Sandiganbayan promulgated yet
another Resolution9 on February 23, 1996, dispositively reading:
WHEREFORE, finding merit in the instant motion for early resolution and considering that,
indeed, the PCGG has not shown any justifiable ground as to why it has not complied with its
obligation as set forth in the Order of December 6, 1994 up to this date and which Order was
issued pursuant to the Compromise Agreement and has already become final and executory,
accordingly, the Presidential Commission on Good Government is hereby given a final
extension of fifteen (15) days from receipt hereof within which to comply with the Order of
December 6, 1994 as stated hereinabove.
On April 1, 1996, PCGG filed a Manifestation with Motion for Reconsideration, 10 praying for
the setting aside of the Resolution of February 23, 1996. On April 11, 1996, private
respondent Benedicto filed a Motion to Enforce Judgment Levy. Resolving these two motions,
the Sandiganbayan, in its second assailed Resolution11 dated March 13, 1997, denied that
portion of the PCGGs Manifestation with Motion for Reconsideration concerning the subject
227 NOGCCI shares and granted Benedictos Motion to Enforce Judgment Levy.
Hence, the Republics present recourse on the sole issue of whether or not the public
respondent Sandiganbayan, Second Division, gravely abused its discretion in holding that
the PCGG is at fault for not paying the membership dues on the 227 sequestered NOGCCI
shares of stock, a failing which eventually led to the foreclosure sale thereof.
The petition lacks merit.
To begin with, PCGG itself does not dispute its being considered as a receiver insofar as the
sequestered 227 NOGCCI shares of stock are concerned.12 PCGG also acknowledges that as
such receiver, one of its functions is to pay outstanding debts pertaining to the sequestered
entity or property,13 in this case the 227 NOGCCI shares in question. It contends, however,
that membership dues owing to a golf club cannot be considered as an outstanding debt for
which PCGG, as receiver, must pay. It also claims to have exercised due diligence to prevent
the loss through delinquency sale of the subject NOGCCI shares, specifically inviting
attention to the injunctive suit, i.e., Civil Case No. 5348, it filed before the RTC of Bacolod
City to enjoin the foreclosure sale of the shares.
The filing of the injunction complaint adverted to, without more, cannot plausibly tilt the
balance in favor of PCGG. To the mind of the Court, such filing is a case of acting too little
and too late. It cannot be over-emphasized that it behooved the PCGGs fiscal agents to
preserve, like a responsible father of the family, the value of the shares of stock under their
administration. But far from acting as such father, what the fiscal agents did under the
premises was to allow the element of delinquency to set in before acting by embarking on a
tedious process of going to court after the auction sale had been announced and scheduled.
The PCGGs posture that to the owner of the sequestered shares rests the burden of paying
the membership dues is untenable. For one, it lost sight of the reality that such dues are
basically obligations attached to the shares, which, in the final analysis, shall be made liable,
thru delinquency sale in case of default in payment of the dues. For another, the PCGG as
sequestrator-receiver of such shares is, as stressed earlier, duty bound to preserve the value
of such shares. Needless to state, adopting timely measures to obviate the loss of those
shares forms part of such duty and due diligence.
The Sandiganbayan, to be sure, cannot plausibly be faulted for finding the PCGG liable for
the loss of the 227 NOGCCI shares. There can be no quibbling, as indeed the graft court so
declared in its assailed and related resolutions respecting the NOGCCI shares of stock, that
PCGGs fiscal agents, while sitting in the NOGCCI Board of Directors agreed to the
amendment of the rule pertaining to membership dues. Hence, it is not amiss to state, as
did the Sandiganbayan, that the PCGG-designated fiscal agents, no less, had a direct hand in
the loss of the sequestered shares through delinquency and their eventual sale through
public auction. While perhaps anti-climactic to so mention it at this stage, the unfortunate
loss of the shares ought not to have come to pass had those fiscal agents prudently not
agreed to the passage of the NOGCCI board resolutions charging membership dues on
shares without playing representatives.
Given the circumstances leading to the auction sale of the subject NOGCCI shares, PCGGs
lament about public respondent Sandiganbayan having erred or, worse still, having gravely
abused its discretion in its determination as to who is at fault for the loss of the shares in
question can hardly be given cogency.
For sure, even if the Sandiganbayan were wrong in its findings, which does not seem to be in
this case, it is a well-settled rule of jurisprudence that certiorari will issue only to correct
errors of jurisdiction, not errors of judgment. Corollarily, errors of procedure or mistakes in
the courts findings and conclusions are beyond the corrective hand of certiorari. 14 The
extraordinary writ of certiorari may be availed only upon a showing, in the minimum, that
the respondent tribunal or officer exercising judicial or quasi-judicial functions has acted
without or in excess of its or his jurisdiction, or with grave abuse of discretion. 15
The term "grave abuse of discretion" connotes capricious and whimsical exercise of
judgment as is equivalent to excess, or a lack of jurisdiction. 16 The abuse must be so patent
and gross as to amount to an evasion of a positive duty or a virtual refusal to perform a duty
enjoined by law, or to act at all in contemplation of law as where the power is exercised in an
arbitrary and despotic manner by reason of passion or hostility. 17 Sadly, this is completely
absent in the present case. For, at bottom, the assailed resolutions of the Sandiganbayan did
no more than to direct PCGG to comply with its part of the bargain under the compromise
agreement it freely entered into with private respondent Benedicto. Simply put, the assailed
resolutions of the Sandiganbayan have firm basis in fact and in law.
Lest it be overlooked, the issue of liability for the shares in question had, as both public and
private respondents asserted, long become final and executory. Petitioners narration of
facts in its present petition is even misleading as it conveniently fails to make reference to
two (2) resolutions issued by the Sandiganbayan. We refer to that courts resolutions of
December 6, 199418 and February 23, 199619 as well as several intervening pleadings which
served as basis for the decisions reached therein. As it were, the present petition questions
only and focuses on the March 28, 199520 and March 13, 199721 resolutions, which merely
reiterated and clarified the graft courts underlying resolution of December 6, 1994. And to
place matters in the proper perspective, PCGGs failure to comply with the December 6,
1994 resolution prompted the issuance of the clarificatory and/or reiteratory resolutions
aforementioned.
In a last-ditch attempt to escape liability, petitioner Republic, through the PCGG, invokes
state immunity from suit.22 As argued, the order for it to pay the value of the delinquent
shares would fix monetary liability on a government agency, thus necessitating the
appropriation of public funds to satisfy the judgment claim.23 But, as private respondent
Benedicto correctly countered, the PCGG fails to take stock of one of the exceptions to the
state immunity principle, i.e., when the government itself is the suitor, as in Civil Case No.
0034. Where, as here, the State itself is no less the plaintiff in the main case, immunity from
suit cannot be effectively invoked.24 For, as jurisprudence teaches, when the State, through
its duly authorized officers, takes the initiative in a suit against a private party, it thereby
descends to the level of a private individual and thus opens itself to whatever counterclaims
or defenses the latter may have against it.25 Petitioner Republics act of filing its complaint in
Civil Case No. 0034 constitutes a waiver of its immunity from suit. Being itself the plaintiff in
that case, petitioner Republic cannot set up its immunity against private respondent
Benedictos prayers in the same case.
In fact, by entering into a Compromise Agreement with private respondent Benedicto,
petitioner Republic thereby stripped itself of its immunity from suit and placed itself in the
same level of its adversary. When the State enters into contract, through its officers or
agents, in furtherance of a legitimate aim and purpose and pursuant to constitutional
legislative authority, whereby mutual or reciprocal benefits accrue and rights and obligations
arise therefrom, the State may be sued even without its express consent, precisely because
by entering into a contract the sovereign descends to the level of the citizen. Its consent to
be sued is implied from the very act of entering into such contract, 26 breach of which on its
part gives the corresponding right to the other party to the agreement.
Finally, it is apropos to stress that the Compromise Agreement in Civil Case No. 0034
envisaged the immediate recovery of alleged ill-gotten wealth without further litigation by
the government, and buying peace on the part of the aging Benedicto. 27 Sadly, that stated
objective has come to naught as not only had the litigation continued to ensue, but, worse,
private respondent Benedicto passed away on May 15, 2000,28 with the trial of Civil Case No.
0034 still in swing, so much so that the late Benedicto had to be substituted by the
administratrix of his estate.29
WHEREFORE, the instant petition is hereby DISMISSED.
SO ORDERED.
CANCIO C. GARCIA
Associate Justice
WE CONCUR:
REYNATO S. PUNO
Associate Justice
Chairperson
ANGELINA SANDOVAL-GUTIERREZ
Associate Justice
ADOLFO S. AZCUNA
Associate Justice
ATTESTATION
RENATO C. CORONA
Asscociate Justice
I attest that the conclusions in the above decision were reached in consultation before the
case was assigned to the writer of the opinion of the Courts Division.
REYNATO S .PUNO
Associate Justice
Chairperson, Second Division
CERTIFICATION
Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairman's
Attestation, it is hereby certified that the conclusions in the above decision were reached in
consultation before the case was assigned to the writer of the opinion of the Court.
ARTEMIO V. PANGANIBAN
Chief Justice
Footnotes
1
Penned by Associate Justice Romeo M. Escareal, with Associate Justices Minita Chico-Nazario (now a
member of this Court) and Roberto M. Lagman, concurring; Rollo, pp. 14-27.
2
Rollo, pp. 28-43.
3
Issued by then Pres. Corazon C. Aquino investing the Sandiganbayan exclusive and original jurisdiction
over cases involving the ill-gotten wealth of former President Ferdinand E. Marcos, members of his
immediate family, close relatives, subordinates, close and/or business associates, dummies, agents and
nominees.
4
Creating the PCGG to assist the President in the recovery of vast government resources allegedly
amassed by then former President Marcos, his immediate family, relatives and close associates and
defining its powers.
5
Par. II (a).
6
Petition, Rollo, p. 6.
7
Rollo, pp. 127-132, Annex 6 of Comment.
8
Rollo, pp. 14-27, Annex "A" of the Petition.
9
Rollo, pp. 138-139, Annex 9 of Comment.
10
Rollo, pp. 44-46, Annex "C" of the Petition.
11
Rollo, pp. 28-43, Annex "B" of the Petition.
12
Petition, Rollo, p. 7.
13
Id. at pp. 7-8, Petition, citing Bataan Shipyard & Engineering Co. v. PCGG, 150 SCRA 181 (1987).
14
Lee v. People, 393 SCRA 397 (2002).
15
Camacho v. Coresis, Jr., 387 SCRA 628 (2002).
16
Litton Mills, Inc. v. Galleon Trader, Inc., 163 SCRA 489 (1988).
17
Duero v. Court of Appeals, 373 SCRA 11 (2002).
18
See Note #7, supra.
19
See Note #9, supra.
20
See Note # 1, supra.
21
See Note #2, supra.
22
Reply, Rollo, p. 160; and Memorandum, Rollo, pp. 260-261.
23
Id., citing Garcia v. Chief of Staff, 16 SCRA 120 (1966).
24
Rejoinder, Rollo, pp. 169-170.
25
Froilan v. Pan Oriental Shipping Co., 95 Phil. 905, 912 (1954).
26
Santos v. Santos, 92 Phil. 281, 284 (1952).
27
March 28, 1995 Resolution of the Sandiganbayan; Rollo, p. 20.
28
29