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unconstitutional. These were definitely in the exercise international jurisprudence established by the United
of police power as such was established to promote Nations, all those persons, military or civilian, who
public welfare and public safety. In fact, the letter of had been guilty of planning, preparing or waging a
instruction is based on the constitutional provision of war of aggression and of the commission of crimes
adopting to the generally accepted principles of and offenses consequential and incidental thereto, in
international law as part of the law of the land. The violation of the laws and customs of war, of humanity
letter of instruction mentions, as its premise and and civilization, were held accountable therefore.
basis, the resolutions of the 1968 Vienna Convention Although the Philippines was not a signatory to the
on Road Signs and Signals and the discussions on conventions embodying them, our Constitution has
traffic safety by the United Nations - that such letter been deliberately general and extensive in its scope
was issued in consideration of a growing number of and is not confined to the recognition of rules and
road accidents due to stalled or parked vehicles on principles of international law as contained in treaties
the streets and highways. to which our government may have been or shall be a
signatory. Consequently, in the promulgation and
enforcement of Executive Order No. 68, the President
KURODA VS JALANDONI of the Philippines had acted in conformity with the
generally accepted principles and policies of
83 Phil. 171 – Political Law – Generally Accepted international law which are part of our Constitution.
Principles of International Law
Shigenori Kuroda was the highest ranking Japanese
officer stationed in the Philippines during the Japanese REPUBLIC VS SANDIGANBAYAN
occupation. He was then charged before the Military
Commission, headed by Major General Rafael The PCGG cannot vote sequestered shares to elect
Jalandoni, due to the atrocities that were done against the ETPI Board of Directors or to amend the Articles of
non combatant civilians and prisoners during the war. Incorporation for the purpose of increasing the
His trial was in pursuant to Executive Order No. 68 authorized capital stock unless there is a prima facie
which established the National War Crimes Office and evidence showing that said shares are ill-gotten and
prescribing rules and regulations governing the trial of there is an imminent danger of dissipation.
accused war criminals. Kuroda is questioning the
legality of the said EO arguing that the same is not
Two sets of board and officers of Eastern
provided for in the Constitution. He further underscores
Telecommunications, Philippines, Inc. (ETPI) were
the fact that the Philippines is not a signatory of the
elected, one by the Presidential Commission on Good
Hague Convention on the Rules and Regulations
Government (PCGG) and the other by the registered
Covering Land Warfare hence we cannot impose
ETPI stockholders. Victor Africa, a stockholder of ETPI
against him any criminal charges because it has no
filed a petition for Certiorari before the Sandiganbayan
laws to base on, national or international.
alleging that the PCGG had been “illegally exercising
ISSUE: Whether or not Kuroda can be charged in the rights of stockholders of ETPI,” in the election of the
Philippine courts? members of the board of directors. The
Sandiganbayan ruled that only the registered owners,
HELD: Yes. EO No. 68 is constitutional hence the their duly authorized representatives or their proxies
Philippine courts can take cognizance of the case at may vote their corresponding shares. The PCGG filed
bar. EO No 68 is in pursuant to the constitutional a petition for certiorari, mandamus and prohibition
provision that states “the Philippines renounces war as before the Court which was granted. The Court
an instrument of national policy, and adopts the referred the PCGG’s petition to hold the special
generally accepted principles of international law as stockholders’ meeting to the Sandiganbayan for
part of the law of the nation.” The Hague Convention reception of evidence and resolution. The
and other similar conventions whose principles are Sandiganbayan granted the PCGG “authority to cause
generally accepted are hence considered as part of the the holding of a special stockholders’ meeting of ETPI
law of the land. and held that there was an urgent necessity to increase
ETPI’s authorized capital stock; there existed a prima
facie factual foundation for the issuance of the writ of
Issue: Whether or not the established Military sequestration covering the Class “A” shares of stock;
Commission is legal and constitutional. and the PCGG was entitled to vote the sequestered
shares of stock. The PCGG-controlled ETPI board of
Held: The court ruled that the Military Commission directors held a meeting and the increase in ETPI’s
was legal and constitutional base on the citation of authorized capital stock from P250 Million to P2.6
Article II, Section 3 of the Philippine Constitution Billion was “unanimously approved”. Africa filed a
declaring that “the Philippine adopts the generally motion to nullify the stockholders meeting, contending
accepted principles of international law as part of the that only the Court, and not the Sandiganbayan, has
law of the nation”. the power to authorize the PCGG to call a stockholders
meeting and vote the sequestered shares. The
The court ruled that in accordance with the generally Sandiganbayan denied the motions for reconsideration
accepted principles of international law of the present of prompting Africa to file before the Court a second
day, including the Hague Convention, the Geneva petition, challenging the Sandiganbayan Resolutions
Convention, and significant precedents of
3|P I L C A S E D I G E S T S B A T C H 1
authorizing the holding of a stockholders meeting and Good Government v. Cojuangco, Jr., where the Court
the one denying the motion for reconsideration. developed a “two-tiered” test in determining whether
the PCGG may vote sequestered shares. The issue of
ISSUES: 1. Whether or not the Sandiganbayan gravely whether PCGG may vote the sequestered shares in
abused its discretion in ordering the holding of a SMC necessitates a determination of at least two
stockholders meeting to elect the ETPI board of factual matters: a.) whether there is prima facie
directors without first setting in place, through evidence showing that the said shares are ill-gotten
the amendment of the articles of incorporation and the and thus belong to the state; and b.) whether there is
by-laws of ETPI 2. Whether the PCGG can vote the an immediate danger of dissipation thus necessitating
sequestered ETPI Class “A” shares in the stockholders their continued sequestration and voting by the PCGG
meeting for the election of the board of directors. while the main issue pends with the Sandiganbayan.
The two-tiered test, however, does not apply in cases
involving funds of “public character.” In such cases, the
HELD: government is granted the authority to vote said
shares, namely: (1) Where government shares are
First Issue : On the PCGG’s imputation of grave abuse taken over by private persons or entities who/which
of discretion upon the Sandiganbayan for ordering the registered them in their own names, and (2) Where
holding of a stockholders meeting to elect the the capitalization or shares that were acquired with
ETPI board of directors without first setting in place, public funds somehow landed in private hands. In
through the amendment of the articles of incorporation short, when sequestered shares registered in the
and the by-laws of ETPI, the safeguards prescribed in names of private individuals or entities are alleged to
Cojuangco, Jr. v. Roxas. The Court laid down those have been acquired with ill-gotten wealth, then the two-
safeguards because of the obvious need to reconcile tiered test is applied. However, when the sequestered
the rights of the stockholder whose shares have been shares in the name of private individuals or entities are
sequestered and the duty of the conservator to shown, prima facie, to have been (1) originally
preserve what could be ill-gotten wealth. There is government shares, or (2) purchased with public funds
nothing in the Cojuangco case that would suggest that or those affected with public interest, then the two-
the above measures should be incorporated in the tiered test does not apply. The rule in the jurisdiction is,
articles and by-laws before stockholders meeting for therefore, clear. The PCGG cannot perform acts of
the election of the board of directors is held. The strict ownership of sequestered property. It is a mere
PCGG nonetheless insists that those measures should conservator. It may not vote the shares in a corporation
be written in the articles and by-laws before such and elect members of the board of directors. The only
meeting, “otherwise, the {Marcos] cronies will elect conceivable exception is in a case of a takeover of a
themselves or their representatives, control the business belonging to the government or
corporation, and for an appreciable period of time, whose capitalization comes from public funds, but
have every opportunity to disburse funds, destroy or which landed in private hands as in BASECO. In short,
alter corporate records, and dissipate assets.” That the Sandiganbayan held that the public character
could be a possibility, but the peculiar circumstances of exception does not apply, in which case it should have
the case require that the election of the board of proceeded to apply the two-tiered test. This it failed to
directors first be held before the articles of do. The questions thus remain if there is prima facie
incorporation are amended. Section 16 of the evidence showing that the subject shares are ill- gotten
Corporation Code requires the majority vote of and if there is imminent danger of dissipation. The
the board of directors to amend the articles of Court is not, however, a trier of facts, hence, it is not in
incorporation. At the time Africa filed his motion for the a position to rule on the correctness of the PCGG’s
holding of the annual stockholders meeting, there were contention. Consequently, the issue must be
two sets of ETPI directors, one controlled by the PCGG remanded to the Sandiganbayan for resolution.
and the other by the registered stockholders. Which of
them is the legitimate board of directors? Which of
them may rightfully vote to amend the articles of
incorporation and integrate the safeguards laid down in TANADA VS ANGARA
Cojuangco? It is essential, therefore, to cure
the aberration of two boards of directors sitting in a Facts : This is a petition seeking to nullify the
single corporation before the articles of incorporation Philippine ratification of the World Trade Organization
are amended to set in place the Cojuangco (WTO) Agreement. Petitioners question the
safeguards. The danger of the so-called Marcos concurrence of herein respondents acting in their
cronies taking control of the corporation and dissipating capacities as Senators via signing the said
its assets is, of course, a legitimate concern of the agreement.
PCGG, charged as it is with the duties of a conservator.
Nevertheless, such danger may be averted by the The WTO opens access to foreign markets, especially
“substantially contemporaneous” amendment of the its major trading partners, through the reduction of
articles after the election of the board. tariffs on its exports, particularly agricultural and
industrial products. Thus, provides new opportunities
Second Issue: The principle laid down in Baseco vs. for the service sector cost and uncertainty associated
PCGG was further enhanced in the subsequent cases with exporting and more investment in the country.
of Cojuangco v. Calpo and Presidential Commission on These are the predicted benefits as reflected in the
4|P I L C A S E D I G E S T S B A T C H 1
agreement and as viewed by the signatory Senators, detriment of our local planters. Ramon Gonzales, then
a “free market” espoused by WTO. president of the Iloilo Palay and Corn Planters
Association assailed the executive agreements.
Petitioners on the other hand viewed the WTO Gonzales averred that Hechanova is without
agreement as one that limits, restricts and impair jurisdiction or in excess of jurisdiction”, because
Philippine economic sovereignty and legislative Republic Act 3452 prohibits the importation of rice and
power. That the Filipino First policy of the Constitution corn by “the Rice and Corn Administration or any other
was taken for granted as it gives foreign trading government agency.
intervention.
ISSUE: Whether or not RA 3452 prevails over the 2
Issue : Whether or not there has been a grave abuse executive agreements entered into by Macapagal.
of discretion amounting to lack or excess of HELD: Yes. Under the Constitution, the main function
jurisdiction on the part of the Senate in giving its of the Executive is to enforce laws enacted by
concurrence of the said WTO agreement. Congress. The former may not interfere in the
performance of the legislative powers of the latter,
Held: In its Declaration of Principles and state except in the exercise of his veto power. He may not
policies, the Constitution “adopts the generally defeat legislative enactments that have acquired the
accepted principles of international law as part of the status of laws, by indirectly repealing the same through
law of the land, and adheres to the policy of peace, an executive agreement providing for the performance
equality, justice, freedom, cooperation and amity , of the very act prohibited by said laws. In the event of
with all nations. By the doctrine of incorporation, the conflict between a treaty and a statute, the one which
country is bound by generally accepted principles of is latest in point of time shall prevail, is not applicable
international law, which are considered automatically to the case at bar, Hechanova not only admits, but,
part of our own laws. Pacta sunt servanda – also, insists that the contracts adverted to are not
international agreements must be performed in good treaties. No such justification can be given as regards
faith. A treaty is not a mere moral obligation but executive agreements not authorized by previous
creates a legally binding obligation on the parties. legislation, without completely upsetting the principle of
separation of powers and the system of checks and
Through WTO the sovereignty of the state cannot in balances which are fundamental in our constitutional
fact and reality be considered as absolute because it set up.
is a regulation of commercial relations among nations. As regards the question whether an executive or an
Such as when Philippines joined the United Nations international agreement may be invalidated by our
(UN) it consented to restrict its sovereignty right under courts, suffice it to say that the Constitution of the
the “concept of sovereignty as autolimitation.” What Philippines has clearly settled it in the affirmative, by
Senate did was a valid exercise of authority. As to providing that the SC may not be deprived “of its
determine whether such exercise is wise, beneficial or jurisdiction to review, revise, reverse, modify, or affirm
viable is outside the realm of judicial inquiry and on appeal, certiorari, or writ of error, as the law or the
review. The act of signing the said agreement is not a rules of court may provide, final judgments and
legislative restriction as WTO allows withdrawal of decrees of inferior courts in “All cases in which the
membership should this be the political desire of a constitutionality or validity of any treaty, law, ordinance,
member. Also, it should not be viewed as a limitation or executive order or regulation is in question”. In other
of economic sovereignty. WTO remains as the only words, our Constitution authorizes the nullification of a
viable structure for multilateral trading and the treaty, not only when it conflicts with the fundamental
veritable forum for the development of international law, but, also, when it runs counter to an act of
trade law. Its alternative is isolation, stagnation if not Congress.
economic self-destruction. Thus, the people be
allowed, through their duly elected officers, make their
free choice.
PHARMACEUTICAL AND HEALTH CARE
Petition is DISMISSED for lack of merit.
ASSOCIATION VS DUQUE
ensured that nutrition and health claims are not And Sec 46 -> sanctions for advertising .
permitted for breastmilk substitutes. In 2006, the DOH
issued the assailed RIRR. These provisions are declared null and void. The DOH
and respondents are prohibited from implementing
Issue: said provisions.
Sub-Issue: W/N the pertinent int’l agreements entered
into by the Phil are part of the law of the land and may
be implemented by DOH through the RIRR. If yes, W/N
the RIRR is in accord with int’l agreements
Held: