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Manila FIRST DIVISION VICTOR AFRICA, Petitioner, G. R. No. 124478 March 11, 1998 - !

r"#"T$% $ONORA&'% SANDIGAN&A(AN )T$IRD DIVISION*, ROMAN MA&ANTA, +R. AND %D,ARDO D% 'OS ANG%'%S, Respondents.

DECISION DAVID%, +R., J Thi" .!/i/ion 0or Certiorari #n1!r R#l! 23 o0 /h! R#l!" o0 Co#r/ "!!4" /o ann#l /h! R!"ol#/ion" o0 /h! San1i5an6a7an 1a/!1 89 +an#ar7 1992 [1] an1 29 March 1992 [2] 1i":i""in5 Ci il Ca"! No. 9142 [3] an1 1!n7in5 ;!/i/ion!r<" Mo/ion 0or R!con"i1!ra/ion, r!";!c/i !l7. A "#::ar7 o0 /h! ;rior r!l! an/ ! !n/", a" 5a/h!r!1 0ro: /h! ol#:ino#" r!cor1" !l! a/!1 /o /hi" Co#r/ 67 /h! San1i5an6a7an [4] an1 0ro: G.R. No. 88881 !n/i/l!1 A0rica . .CGG, [5] i" a;;ro;ria/! 0or a 6!//!r #n1!r"/an1in5 o0 /h! ca"!. .#r"#an/ /o i/" ;o=!r" #n1!r %>!c#/i ! Or1!r No. 1 [6] ;ro:#l5a/!1 67 /h!n .r!"i1!n/ Cora?on C. A@#ino on 28 F!6r#ar7 1982, /h! .r!"i1!n/ial Co::i""ion on Goo1 Go !rn:!n/ ).CGG* "!@#!"/!r!1 on 14 March 1982 /h! %a"/!rn T!l!co::#nica/ion" .hili;;in!", Inc. )%T.I*. T=o :on/h" la/!r, /h! "!@#!"/ra/ion ;!r/ainin5 /o 49A o0 /h! ca;i/al "/oc4 )Cla"" B&B "har!"* o=n!1 67 Ca6l! an1 Cir!l!"", '/1., a 0or!i5n cor;ora/ion, =a" li0/!1. I/, ho=! !r, r!:ain!1 in 0orc! on /h! r!:ainin5 29A o0 /h! ca;i/al "/oc4 )Cla"" BAB "har!"* con"i"/in5 o0 /h! "har!" o0 Ro6!r/o S. &!n!1ic/oD +o"! '. A0ricaD .ol75on In !"/:!n/" E Mana5!r", Inc.D an1 ,ni !r"al Mola""!" Cor;ora/ion an1 all "har!" =h!r!in /h! la/! .r!"i1!n/ F!r1inan1 %. Marco" =a" 1!!:!1 /h! 6!n!0icial o=n!r. [7]

On 22 +#l7 1987, /h! .CGG 0il!1 =i/h /h! San1i5an6a7an Ci il Ca"! No. 9999 0or /h! r!con !7anc!, r! !r"ion, acco#n/in5, an1 r!"/i/#/ion o0 /h! all!5!1 ill-5o//!n %T.I "har!", an1 0or 1a:a5!". Th!n 0ollo=!1 88881, ario#" inci1!n/", =hich /hi" Co#r/ narra/!1 in G.R. No. /h#"-

S#6"!@#!n/l7, 1#rin5 /h! ann#al "/oc4hol1!r" :!!/in5 con !n!1 on +an#ar7 29, 1988 ;#r"#an/ /o a .CGG R!"ol#/ion 1a/!1 +an#ar7 28, 1988 =hich call!1 0or /h! r!"#:;/ion o0 /h! "/oc4hol1!r" :!!/in5 ori5inall7 "ch!1#l!1 on +an#ar7 4, 1988, %1#ar1o M. Villan#! a, a" .CGG no:in!!, Ro:an Ma6an/a, +r. an1 %1#ar1o 1! lo" An5!l!" a" no:in!!" o0 /h! 0or!i5n in !"/or", Ca6l! Cir!l!"" '/1., an1 +o"! '. A0rica )=ho =a" a6"!n/* =!r! !l!c/!1 a" :!:6!r" o0 /h! 6oar1 o0 1ir!c/or". An or5ani?a/ional :!!/in5 =a" la/!r h!l1 =h!r! %1#ar1o Villan#! a =a" !l!c/!1 a" ;r!"i1!n/ an1 5!n!ral :ana5!r, =hil! Ra:on D!"#a"i1o, Al:ario V!la"co an1 Ran#l0o .a7o" =!r! !l!c/!1 a" ac/in5 cor;ora/! "!cr!/ar7, ac/in5 /r!a"#r!r, an1 ac/in5 a""i"/an/ cor;ora/! "!cr!/ar7, r!";!c/i !l7. Th! no:ina/ion an1 !l!c/ion o0 .CGG no:in!!"F1!"i5n!!" /o /h! %T.I &oar1 o0 Dir!c/or", a" =!ll a" /h! !l!c/ion o0 i/" n!= o00ic!r", /ri55!r!1 a chain o0 con/!n/io#" ;roc!!1in5" 6!0or! /h! San1i5an6a7an an1 /hi" Co#r/ 6!/=!!n /h! :!:6!r" o0 /h! %T.I &oar1 an1 i/" "/oc4hol1!r", on /h! on! han1, an1 /h! .CGG<" no:in!!"F1!"i5n!!" !l!c/!1 /o /h! %T.I &oar1, on /h! o/h!r han1, in /h! ca"!" h!r!in#n1!r 1i"c#""!1. Vic/or A0rica, =ho clai:" /o 6! an !:;lo7!! o0 %T.I hol1in5 /h! ;o"i/ion" o0 ic!-;r!"i1!n/, 5!n!ral co#n"!l )on o00icial l!a ! =i/ho#/ ;a7*, cor;ora/! "!cr!/ar7 an1 ";!cial a""i"/an/ /o /h! chair:an )an1 ;r!"i1!n/*, 0il!1 1ir!c/l7 =i/h /hi" Co#r/ on +#n! 89, 1988 a .!/i/ion 0or InG#nc/ion 1oc4!/!1 a" G.R. No. 88881, "!!4in5 /o !nGoin /h! .CGG an1 i/" no:in!!"F1!"i5n!!" /o /h! 6oar1 o0 1ir!c/or" an1 /h! n!=l7-in"/all!1 o00ic!r" o0 %T.I 0ro: i:;l!:!n/in5 /h!ir all!5!1 ill!5al, in ali1 an1 i::oral ac/ o0 o#"/in5 hi: 0ro: hi" o00ic!" an1 ;o"i/ion" a/ /h! %T.I ;!n1in5 /h! 1!/!r:ina/ion o0 =h!/h!r /h!7 ha ! ali1l7, l!5all7 an1 :orall7 a""#:!1 /h!ir "#;;o"!1 ;o"i/ion" an1 o00ic!" a" B1ir!c/or"B an1For Bo00ic!r"BB o0 %T.I. $! con/!n1" /ha/ /h! r!a"on" a1 anc!1 67 /h! .CGG-";on"or!1 6oar1 o0 1ir!c/or" 0or o#"/in5 hi: 0ro: hi" o00ic!" )r!1#n1anc7, n!!1 /o con"!r ! co:;an7 0#n1" an1 lo"" o0 con0i1!nc!* ar! 0li:"7, =hi:"ical an1 ar6i/rar7, ! i1!ncin5 no/ onl7 /h! .CGG-";on"or!1 6oar1<" 1i"cri:ina/or7 an1 o;;r!""i ! a//i/#1! /o=ar1" hi: 6#/, :or! i:;or/an/l7, i/" cl!ar in/!n/ /o

hara"" hi: in/o r!0rainin5 0ro: @#!"/ionin5 6!0or! "! !ral /ri6#nal" all /h! in ali1, ill!5al an1 i::oral ac/" o0 "ai1 .CGG-";on"or!1 6oar1 =hich ha ! ca#"!1 an1 ar! "/ill ca#"in5 %T.I 1a:a5!" 6!ca#"! /h!7 con"/i/#/! 1i""i;a/ion o0 a""!/". F#r/h!r clai:in5 /ha/ /h! ac/" o0 r!";on1!n/" =ill =or4 inG#"/ic!, #n0airn!"" an1 in!@#i/7 /o hi: a" /h!7 =ill in ali1l7, ill!5all7 an1 i::orall7 1!;ri ! hi: o0 hi" ;rinci;al :!an" o0 li !lihoo1 /o /h! 1!/ri:!n/ o0 hi" ";o#"! an1 /hr!! chil1r!n, ;!/i/ion!r "o#5h/ /h! i""#anc! o0 a =ri/ o0 ;r!li:inar7 inG#nc/ion or a /!:;orar7 r!"/rainin5 or1!r /o !nGoin /h! .CGG 0ro: o#"/in5 hi: 0ro: hi" ;o"i/ion" an1 o00ic!" !00!c/i ! +#n! 89, 1988. On +#l7 8, 1988, ;!/i/ion!r in0or:!1 /h! Co#r/ /ha/ =hil! a !r6al a5r!!:!n/ /o :ain/ain /h! "/a/#" @#o =a" r!ach!1 6!/=!!n ;!/i/ion!r<" la=7!r", A//7". +#an 1! Oca:;o an1 An/onio A0rica, an1 M!""r". Orlan1o Ro:!ro an1 S!ra0in Ri !ra o0 /h! .CGG, r!";on1!n/ %1#ar1o M. Villan#! a circ#la/!1 on +#l7 3, 1988 an in/!r-o00ic! :!:oran1#: !a"in5 o#/ /h! l!5i/i:a/! :!:6!r" o0 /h! 6oar1 0ro: /h!ir roo:" in /h! !>!c#/i ! o00ic!" 0or /h! 6!n!0i/ o0 /h! n!=l7-in"/all!1 :!:6!r" o0 /h! @#!"/ion!1 .CGG 6oar1D an1 /ha/ Il1!0on"o R!7no"o, ic!-;r!"i1!n/ 0or a1:ini"/ra/ion, i""#!1 a :!:oran1#: /o /h! Ni al S!c#ri/7 an1 .ro/!c/i ! A5!nc7 in0or:in5 /h!: /ha/ /h!7 =!r! 6!in5 r!li! !1 o0 /h!ir 1#/7 /o ;ro i1! "!c#ri/7 "!r ic!" a/ /h! 7/h Floor o0 T!l!co:" .la?a =h!r! /h! !>!c#/i ! o00ic!" ar! loca/!1, =hich "!r ic!" =o#l1 /h!n 6! han1l!1 67 /h! FCA S!c#ri/7 A5!nc7. On +#l7 13, 1988, ;!/i/ion!r =a" all!5!1l7 0orci6l7 /a4!n o#/ o0 hi" o00ic! on /h! 6a"i" o0 a .CGG or1!r =hich ;!/i/ion!r clai:!1 =a" a11r!""!1 no/ /o /h!n .CGG Co::i""ion!r 'a#r!/a 6#/ /o /hr!! o/h!r .CGG o00icial", na:!l7, %"/!6an &. Con!Go", +r., S!ra0in .. Ri !ra an1 Orlan1o H. Ro:!ro. A" a con"!@#!nc!, ;!/i/ion!r A0rica "o#5h/ /o ha ! /h!n Co::i""ion!r 'a#r!/a 1!clar!1 in con/!:;/ o0 co#r/ 0or ha in5 co::i//!1 Bi:;ro;!r con1#c/ /!n1in5 1ir!c/l7 or in1ir!c/l7, /o i:;!1!, o6"/r#c/ or 1!5ra1! /h! a1:ini"/ra/ion o0 G#"/ic!.B $! li4!=i"! "o#5h/ /h! i""#anc! o0 a =ri/ o0 ;r!li:inar7 :an1a/or7 inG#nc/ion or1!rin5 r!";on1!n/" /o o;!n hi" o00ic! an1 allo= hi: acc!"" /o an1 #"! o0 /h! "a:!. [8] In /h! D!ci"ion o0 9 +an#ar7 1992, C! h!l1 /ha/ /h! i""#!" rai"!1 in G.R. No. 88881, a" =!ll a" in /h! :o/ion 0or con/!:;/ 0il!1 67 %1#ar1o Villan#! a, =!r! 0ac/#al in na/#r! an1 co#l1 6! 6!"/ !n/ila/!1 6!0or! /h! San1i5an6a7an- B/h! ;ro;!r 0or#: =h!r! 6o/h ;ar/i!" Ico#l1J "#6"/an/ia/! /h!ir r!";!c/i ! clai:".B C! /h!n r!0!rr!1 /h! "ai1 ca"! /o /h! San1i5an6a7an 0or a;;ro;ria/! ;roc!!1in5" an1 or1!r!1 i/" con"oli1a/ion =i/h Ci il Ca"! No. 9999. Th! "ai1 ca"! =a" "#6"!@#!n/l7 1oc4!/!1 a" Ci il

Ca"! No. 9142. Th!r!a0/!r, /h! ;!/i/ion!r 0il!1 a :o/ion 0or "#::ar7 G#15:!n/, =hich /h! San1i5an6a7an 1!ni!1 0or lac4 o0 :!ri/. Th! ;ri a/! r!";on1!n/" /h!n 0il!1 /h!ir an"=!r =i/h co#n/!rclai: in Ci il Ca"! No. 9142. Th!7 r!i/!ra/!1 /ha/ /h! ;!/i/ion!r =a" no/ a l!5i/i:a/! "/oc4hol1!r, 6#/ :!r!l7 a 1#::7 0or /h! la/! .r!"i1!n/ Marco"D h! =a" no/, /h!r!0or!, !n/i/l!1 /o !>a:in! /h! cor;ora/! r!cor1". In /h! in/!ri:, /h! ;!/i/ion!r 0il!1 "!;ara/! :o/ion", a:on5 =hich =a" 0or /h! ;ro1#c/ion an1 in";!c/ion o0 1oc#:!n/". In i/" R!"ol#/ion [9] o0 19 +an#ar7 1994, /h! San1i5an6a7an 5ran/!1 ;!/i/ion!r<" :o/ion 0or /h! ;ro1#c/ion an1 in";!c/ion o0 1oc#:!n/" ;!r/ainin5 /o /h! /ran"0!r o0 %T.I "har!" /o /h! ;ri a/! r!";on1!n/", incl#1in5 /h! c!r/i0ica/!" o0 "har!" o0 "/oc4 an1 /h! na:!, /i/l!, a#/hori/7, an1 a11r!"" o0 /h! ;!r"on =ho !n/!r!1 /h! chan5!" in /h! "/oc4 an1 /ran"0!r 6oo4. .ri a/! r!";on1!n/" D! lo" An5!l!" an1 Ma6an/a /h!r!a0/!r 0il!1 an o:ni6#" :o/ion 0or a r!con"i1!ra/ion o0 /h! r!"ol#/ion an1 0or /h! 1i":i""al o0 Ci il Ca"! No. 9142. Th!7 con/!n1!1 /ha/ in G.R. No. 88881 )no= Ci il Ca"! No. 9142*, /hi" Co#r/ 1i1 no/ 5ran/ ;!/i/ion!r<" ;ra7!r 0or a /!:;orar7 r!"/rainin5 or1!r /o !nGoin /h! .CGG an1 /h! n!= 6oar1 o0 1ir!c/or" an1 o00ic!r" B0ro: o#"/in5 /h! ;!/i/ion!r 0ro: hi" o00ic!" an1 ;o"i/ion" a/ %T.I an1 ! !n 0ro: hi" roo: 1#rin5 /h! ;!n1!nc7 o0 /h! ;!/i/ion.B Th!7 concl#1!1 /ha/ in /h! a6"!nc! o0 a r!"/rainin5 or1!r, /h! ;!/i/ion!r =a" ali1l7 "/ri;;!1 o00 o0 hi" ;o"i/ion", /h!r!67 r!n1!rin5 hi" ;!/i/ion :oo/ an1 aca1!:ic. Th!7 al"o ci/!1 A0rica . .CGG [10] =h!r! /hi" Co#r/ ;rono#nc!1 /ha/ /h!7 =!r! !l!c/!1 a" no:in!!" o0 /h! 0or!i5n in !"/or Ca6l! an1 Cir!l!"", '/1., o=n!r o0 /h! Cla"" B&B "har!", =hich =!r! o#/"i1! /h! "co;! o0 "!@#!"/ra/ion. Th!7 /h!n ar5#!1 /ha/ in li5h/ o0 /hi" Co#r/<" r#lin5" in .CGG . .!Ka [11] an1 San Mi5#!l Cor;ora/ion . Lhan, [12] /h! San1i5an6a7an 1i1 no/ ha ! G#ri"1ic/ion o !r /h!: 6!ca#"! /h! "har!" ;!r/ainin5 /o /h!: =!r! n!i/h!r ill-5o//!n nor "!@#!"/!r!1. Th! ;!/i/ion!r o;;o"!1 /h! o:ni6#" :o/ion 6!ca#"! /h! ali1i/7 o0 ;ri a/! r!";on1!n/"< !l!c/ion a" :!:6!r" o0 /h! 6oar1 r!:ain!1 /h! ;rinci;al i""#! o0 hi" ;!/i/ion an1 /h!ir ! !n/#al r!;lac!:!n/ in /h! 6oar1 1i1 no/ a6"ol ! /h!: 0ro: an7 r!";on"i6ili/7 0or ac/" co::i//!1 1#rin5 /h!ir /!r:. In r!;l7, /h! ;ri a/! r!";on1!n/" "/r!""!1 /ha/ /h!ir o/! a" 1ir!c/or" /o o#"/ /h! ;!/i/ion!r 0ro: hi" ;o"i/ion" an1 /h!ir ri5h/ /o "i/ a" 6oar1 :!:6!r" =!r! i""#!" =hich =!r! no/ in an7 =a7 r!la/!1 /o /h! "!@#!"/ra/ion or

r!co !r7 o0 ill-5o//!n =!al/h o0 =hich /h! San1i5an6a7an !>!rci"!" !>cl#"i ! ori5inal G#ri"1ic/ion. In i/" R!"ol#/ion o0 89 +an#ar7 1992, [13] /h! San1i5an6a7an 5ran/!1 ;ri a/! r!";on1!n/"< :o/ion an1 1i":i""!1 Ci il Ca"! No. 9412. I/ r#l!1 /ha/ /h! ;!/i/ion 0or inG#nc/ion =a" :oo/ an1 aca1!:ic an1 co#l1 no lon5!r ;ro";!r, "inc! /h! ac/ "o#5h/ /o 6! !nGoin!1 ha1 alr!a17 6!!n con"#::a/!1. &!"i1!", /h! San1i5an6a7an ha1 no G#ri"1ic/ion o !r r!";on1!n/" D! lo" An5!l!" an1 Ma6an/a 6!ca#"! /h!ir "har!" =!r! no lon5!r co !r!1 67 a =ri/ o0 "!@#!"/ra/ion. Mor!o !r, /h!7 =!r! ! !n/#all7 r!;lac!1 67 /=o &ri/i"h r!;r!"!n/a/i !". $i" :o/ion 0or a r!con"i1!ra/ion o0 /h! r!"ol#/ion ha in5 6!!n 1!ni!1 0or lac4 o0 :!ri/ in /h! R!"ol#/ion [14] o0 /h! San1i5an6a7an o0 29 March 1992, /h! ;!/i/ion!r 0il!1 /hi" ";!cial ci il ac/ion 0or c!r/iorari #n1!r R#l! 23 o0 /h! R#l!" o0 Co#r/ con/!n1in5 /ha/a. Th! San1i5an6a7an ac/!1 in 5ra ! a6#"! o0 1i"cr!/ion =h!n i/ 1i":i""!1 /h! ca"! )or1!r!1 67 /hi" $onora6l! Co#r/ /o 6! con"oli1a/!1 =i/h S& Ca"! No. 9999* in li!# o0 /a4in5 Ba;;ro;ria/! ;roc!!1in5"B a" 1ir!c/!1 67 /hi" $onora6l! Co#r/. 6. Th! San1i5an6a7an ac/!1 in 5ra ! a6#"! o0 1i"cr!/ion =h!n i/ 1i":i""!1 /h! ca"! )! !n =hil! i/ =a" alr!a17 con1#c/in5 h!arin5" in /h! o/h!r ca"!" on /h! B"#6"/an/iall7 i1!n/icalB r!li!0"* in"/!a1 o0 incl#1in5 /h! ca"! in /h! "ai1 h!arin5". c. Th! San1i5an6a7an ac/!1 in 5ra ! a6#"! o0 1i"cr!/ion =h!n i/ 1i":i""!1 /h! ca"! )no/ onl7 a5ain"/ /h! r!";on1!n/" Ma6an/a an1 D! lo" An5!l!" =ho =!r! no lon5!r %T.I 1ir!c/or", 6#/ al"o a" a5ain"/ .CGG an1 /h! o/h!r non.CGG r!";on1!n/"* ra/h!r /han G#"/ 1ro;;in5 /h! non-in ol !1 r!";on1!n/" an1 con/in#in5 =i/h /h! o/h!r". 1. Th! San1i5an6a7an ac/!1 in 5ra ! a6#"! o0 1i"cr!/ion =h!n i/ B0o#n1 B /h! "har!" in ol !1 )o0 Ma6an/a an1 D! lo" An5!l!"* no/ /o 6! "!@#!"/!r!1 no/=i/h"/an1in5 /h! a6"!nc! o0 an7 1oc#:!n/ !>cl#1in5 /h!: 0ro: /h! "!@#!"/ra/ion ;r! io#"l7 i:;o"!1 /h!r!on 67 !arli!r 1oc#:!n/". On /h! o/h!r han1, /h! ;ri a/! r!";on1!n/" all!5! /ha/ /h! 1i":i""al o0 Ci il Ca"! No. 9412 =a" 6a"!1 on /h! ! i1!nc! an1 la=. Th! ori5inal ;!/i/ion =a" in /h! na/#r! o0 a ;r!li:inar7 ;rohi6i/or7 inG#nc/ion, an1 no/ a ;r!li:inar7 :an1a/or7 inG#nc/ion a" clai:!1 67 /h! ;!/i/ion!r. Sinc! no inG#nc/ion =a" 5ran/!1 67 /hi" Co#r/, ;!/i/ion!r<" o#"/!r in 1988 6!ca:! fait accompli.

To r!0#/! ;!/i/ion!r<" all!5a/ion /ha/ /h!r! =a" no ! i1!nc! "ho=in5 /ha/ /h!ir "har!" =!r! o#/"i1! /h! "co;! o0 "!@#!"/ra/ion, /h! ;ri a/! r!";on1!n/" ci/! /h! .CGG Or1!r o0 14 Ma7 1982, a" =!ll a" /h! ;rono#nc!:!n/ o0 /hi" Co#r/ in A0rica . .CGGD /h#"Th! "!@#!"/ra/ion o0 %a"/!rn T!l!co::#nica/ion" .hili;;in!", Inc. i" li0/!1. $!nc!0or/h, "!@#!"/ra/ion i" li:i/!1 /o /h! "har!" o0 Ro6!r/o S. &!n!1ic/o, +o"! '. A0rica, .ol75on In !"/:!n/", ,ni !r"al Mola""!" an1 all "har!" =h!r!in F!r1inan1 %. Marco" i" /h! 6!n!0icial o=n!r. [15] >>> Shor/l7 a0/!r /h! .CGG "!@#!"/!r!1 %T.I on March 14, 1982, /h! "!@#!"/ra/ion or1!r =a" ;ar/iall7 li0/!1 in Ma7 1982 =h!n 49A o0 /h! "har!" o0 "/oc4 )Cla"" B&B* o=n!1 67 /h! Ca6l! an1 Cir!l!"", '/1. =!r! 0r!!1 0ro: /h! !00!c/" o0 "!@#!"/ra/ion. [16] Finall7, /h! ;ri a/! r!";on1!n/" ci/! an!= /h! ca"! o0 San Mi5#!l Cor;ora/ion . Lhan, [17] =h!r! =! h!l1 /ha/ /h! San1i5an6a7an co#l1 no/ ac@#ir! G#ri"1ic/ion o !r /h! "#i/ in ol in5 /h! "a:! r!";on1!n/ %1#ar1o 1! lo" An5!l!" 6!ca#"! /h! San Mi5#!l "har!" o0 "/oc4 ;!r/ainin5 /o hi: =!r! no/ "!@#!"/!r!1. For i/" ;ar/, /h! .CGG :ain/ain" /ha/ /h! San1i5an6a7an ;ro;!rl7 1i":i""!1 Ci il Ca"! No. 9142 on /h! 5ro#n1" /ha/ )1* /h! ca"! ha1 6!co:! :oo/ an1 aca1!:ic an1 )2* /h! San1i5an6a7an ha1 no G#ri"1ic/ion o !r /h! "#6G!c/ :a//!r o0 /h! ;!/i/ion in"o0ar a" ;ri a/! r!";on1!n/" Ma6an/a an1 D! lo" An5!l!" =!r! conc!rn!1. A" /o /h! 0ir"/, /h! .CGG ;oin/" o#/ /ha/ /h! ;!/i/ion!r ha1 lon5 6!!n o#"/!1 0ro: hi" ;o"i/ion in %T.I an1 /h!r! =a", /h!r!0or!, no/hin5 :or! /o !nGoin. $i" "#6"!@#!n/ :o/ion 0or ;r!li:inar7 :an1a/or7 inG#nc/ion ;ra7in5 /ha/ hi" o00ic! 6! o;!n!1 0or hi" acc!"" an1 #"! =a" r!n1!r!1 n#5a/or7 67 hi" o#"/!r. A" /o /h! "!con1 5ro#n1, /h! .CGG ar5#!" /ha/ in /=o r!"ol#/ion", [18] /h! San1i5an6a7an con"i"/!n/l7 r#l!1 /ha/ /h! "!@#!"/ra/ion o0 %T.I =a" li:i/!1 /o Cla"" BAB "har!", r!;r!"!n/in5 /h! 29A Fili;ino-o=n!1 ca;i/al "/oc4. Th! .CGG li4!=i"! con0ir:" /ha/ in /h! con/ro !r"ial ann#al "/oc4hol1!r"< :!!/in5 on 29 +an#ar7 1988 /h! .CGG 1i1 no/ :a4! an7 no:ina/ion ;!r/ainin5 /o Cla"" B&B "har!" 6!ca#"! i/ r!co5ni?!1 /ha/ "ai1 "har!" =!r! no/ "!@#!"/!r!1. Sinc! /h!n #n/il /h! ;r!"!n/, "#ch 0ac/ ha" r!:ain!1. C! 1i":i"" /h! ;!/i/ion.

Fir"/, /h! ;!/i/ion!r ;#r"#!1 /h! =ron5 r!:!17. ,n1!r S!c/ion 7 o0 ..D. No. 1292, a" 0#r/h!r a:!n1!1 67 S!c/ion 8 o0 R.A. No. 7973, [19] ;!/i/ion!r<" r!:!17 0ro: /h! or1!r 1i":i""in5 Ci il Ca"! No. 9142 =a" a ;!/i/ion 0or r! i!= #n1!r R#l! 43 o0 /h! R#l!" o0 Co#r/. Sai1 S!c/ion 7 ;!r/in!n/l7 ;ro i1!" a" 0ollo="BS!c. 7. Form, Finality and Enforcement of Decisions. >>> D!ci"ion" an1 0inal or1!r" o0 /h! San1i5an6a7an "hall 6! a;;!ala6l! /o /h! S#;r!:! Co#r/ 67 ;!/i/ion 0or r! i!= on c!r/iorari rai"in5 ;#r! @#!"/ion" o0 la= in accor1anc! =i/h R#l! 43 o0 /h! R#l!" o0 Co#r/.B Th! San1i5an6a7an<" R!"ol#/ion o0 89 +an#ar7 1992 1i":i""in5 Ci il Ca"! No. 9l42 =a" 0inal in charac/!r in /ha/ i/ 1i";o"!1 o0 /h! ac/ion. [20] Accor1in5l7, /h! a55ri! !1 ;ar/7 co#l1 a;;!al /h!r!0ro: 67 =a7 o0 a ;!/i/ion 0or r! i!= #n1!r R#l! 43 o0 /h! R#l!" o0 Co#r/ ;#r"#an/ /o S!c. 7 o0 ..D. No. 1292 a" 0#r/h!r a:!n1!1 67 R.A. No. 7973. I/ i", o0 co#r"!, "!//l!1 /ha/ /h! ";!cial ci il ac/ion 0or c!r/iorari :a7 6! r!"or/!1 /o ! !n i0 /h! r!:!17 o0 a;;!al i" a aila6l! ;ro i1!1 /ha/ i/ i" "ho=n /ha/ /h! a;;!al i" ina1!@#a/!, "lo=, in"#00ici!n/, an1 =ill no/ ;ro:;/l7 r!li! ! a ;ar/7 0ro: /h! inG#rio#" !00!c/" o0 /h! or1!r co:;lain!1 o0, or =h!r! /h! a;;!al i" in!00!c/i !. [21] In /hi" ca"!, /h! ;!/i/ion!r ha" no/ con inc!1 #" a/ all /ha/ /h! r!5#lar a;;!al #n1!r R#l! 43 o0 /h! R#l!" o0 Co#r/, a" ;ro i1!1 0or in S!c/ion 7 o0 ..D. No. 1292 a" 0#r/h!r a:!n1!1 67 R.A. No. 7973, =a" ina1!@#a/!, "lo=, in"#00ici!n/, or in!00!c/i !. O/h!r /han hi" 6ar!, "/!r!o/7;!1 all!5a/ion in /h! ;!/i/ion /ha/ h! ha1 Bno a;;!al, nor an7 ;lain, ";!!17, an1 a1!@#a/! r!:!17 in /h! or1inar7 co#r"! o0 la=,B =hich i" ! !n #n/r#! "inc! /h! r!:!17 o0 a;;!al =a" in 0ac/ allo=!1, /h! ;!/i/ion!r ha" no/hin5 /o o00!r /o G#"/i07 hi" r!"or/ /o R#l! 23 o0 /h! R#l!" o0 Co#r/. % !n i0 i/ 6! conc!1!1, arguendo, /ha/ /h! ;!/i/ion!r co#l1 ;ro;!rl7 a ail o0 R#l! 23, /h! in"/an/ ;!/i/ion =o#l1 "/ill 0ail. Th! a""ail!1 r!"ol#/ion" ar! no/ /ain/!1 =i/h 5ra ! a6#"! o0 1i"cr!/ion. C! a5r!! =i/h /h! San1i5an6a7an /ha/ /h! ;!/i/ion 0or inG#nc/ion ha1 6!co:! :oo/ an1 aca1!:ic. Th! r!:!17 o0 inG#nc/ion, ";!ci0icall7 /o ;r! !n/ hi" o#"/!r 0ro: hi" ;o"i/ion", co#l1 no lon5!r 6! !n/!r/ain!1 6!ca#"! /h! ac/ "o#5h/ /o 6! ;r! !n/!1 ha1 lon5 6!!n con"#::a/!1.

Ci/ho#/ 1o#6/, /h! "ai1 ;!/i/ion =a" ;r!ci;i/a/!1 67 /h! l!//!r [22] 1a/!1 27 +#n! 1988, =hich 1i":i""!1 /h! ;!/i/ion!r 0ro: hi" ;o"i/ion" !00!c/i ! 89 +#n! 1988. Th! ;!/i/ion in G.R. No. 88881, =hich =a" 0il!1 6!0or! /hi" Co#r/ on 89 +#n! 1988, "o#5h/ /h! i""#anc! o0 a =ri/ o0 ;r!li:inar7 inG#nc/ion or /!:;orar7 r!"/rainin5 or1!r /o !nGoin /h! .CGG an1 /h! n!=l7 !l!c/!1 %T.I 6oar1 :!:6!r" an1 o00ic!r" 0ro: o#"/in5 /h! ;!/i/ion!r 0ro: hi" ;o"i/ion" a/ %T.I. No /!:;orar7 r!"/rainin5 or1!r or =ri/ o0 ;r!li:inar7 inG#nc/ion =a" i""#!1 67 /hi" Co#r/. $!nc!, h! =a" !00!c/i !l7 r!:o !1 0ro: hi" ;o"i/ion". Corollaril7, hi" "#6"!@#!n/ :o/ion 0or a ;r!li:inar7 :an1a/or7 inG#nc/ion ;ra7in5 /ha/ /h! r!";on1!n/" 6! or1!r!1 /o o;!n hi" o00ic! an1 allo= hi: acc!"" /o an1 #"! /h!r!o0 ha1 no l!5 /o "/an1 on. N!i/h!r i" /h!r! :!ri/ in ;!/i/ion!r<" ar5#:!n/ /ha/ "inc! /hi" Co#r/ r!0!rr!1 hi" ori5inal ;!/i/ion )G.R. No. 88881* /o /h! San1i5an6a7an 0or a;;ro;ria/! ;roc!!1in5" /h! San1i5an6a7an "ho#l1 no/ ha ! 1i":i""!1 i/. S#ch r!0!rral =a" :a1! 0or /h! San1i5an6a7an /o !>!rci"! i/" ori5inal G#ri"1ic/ion an1 /o 1!/!r:in! /h! :!ri/" o0 /h! i""#!" rai"!1 67 /h! ;ar/i!", =hich =!r! 6a"icall7 0ac/#al. Th#", /h! "ai1 /ri6#nal allo=!1 /h! ;ar/i!" /o ar5#! /h!ir ;o"i/ion", a" in1ica/!1 in /h! ol#:ino#" ;l!a1in5" an1 :o/ion" 0il!1 67 /h!:. $!arin5" on c!r/ain :o/ion", incl#1in5 /ho"! 0il!1 67 /h! ;!/i/ion!r, =!r! con1#c/!1. I/ canno/, /h!r!0or!, 6! 1!ni!1 /ha/ /h! San1i5an6a7an 5a ! 1#! con"i1!ra/ion /o /h! ;!/i/ion an1 1i":i""!1 /h! "a:! onl7 a0/!r /h! ;ar/i!" =!r! 5i !n "#00ici!n/ o;;or/#ni/7 /o !n/ila/! /h!ir r!";!c/i ! ;o"i/ion". A" /o /h! i""#! o0 /h! ;ro;ri!/7 o0 i:;l!a1in5 ;ri a/! r!";on1!n/" D! lo" An5!l!" an1 Ma6an/a, /h! r#lin5 o0 /h! San1i5an6a7an :#"/ 6! "#"/ain!1. I/ :#"/ 6! !:;ha"i?!1 /ha/ /h! ;ri a/! r!";on1!n/" =!r! !l!c/!1 /o /h! &oar1 o0 Dir!c/or" #;on /h! no:ina/ion o0 /h! 0or!i5n in !"/or Ca6l! an1 Cir!l!"", '/1. A/ /h! /i:! o0 /h! !l!c/ion, /h! Cla"" B&B "har!", =hich =!r! o=n!1 67 /h! "ai1 0or!i5n cor;ora/ion, =!r! no lon5!r #n1!r "!@#!"/ra/ion. Thi" =a" con0ir:!1 67 /h! .CGG i/"!l0 in i/" co::!n/. 'i4!=i"!, /h! San1i5an6a7an i/"!l0 r#l!1, in i/" R!"ol#/ion" o0 11 Ma7 an1 1 A#5#"/ 1993 in Ci il Ca"! No. 9999, [23] /ha/ "ai1 Cla"" B&B "har!" =!r! no lon5!r #n1!r "!@#!"/ra/ion. Con0or:a6l7 =i/h o#r r#lin5 in .CGG . .!Ka [24] an1 San Mi5#!l Cor;ora/ion . Lahn, [25] /h! San1i5an6a7an ha1 no G#ri"1ic/ion o !r /h! "ai1 ;ri a/! r!";on1!n/" 6!ca#"! /h! Cla"" B&B "har!" ;!r/ainin5 /o /h!: =!r! no lon5!r co !r!1 67 /h! =ri/ o0 "!@#!"/ra/ion. .!/i/ion!r<" "#6:i""ion /ha/, i0 a/ all, /h! 1i":i""al "ho#l1 ha ! 6!!n li:i/!1 onl7 in"o0ar a" ;ri a/! r!";on1!n/" D! lo" An5!l!" an1 Ma6an/a =!r! conc!rn!1 i" no/ ;!r"#a"i !. A5ain, /h! na/#r! o0 /h! ;!/i/ion =a" li:i/!1 /o /h! ;r! !n/ion o0 hi" o#"/!r 67 /h! r!";on1!n/" a" a coll!5ial 6o17. A"

!arli!r 1i"c#""!1, /h! ;!/i/ion i/"!l0 ha1 6!co:! :oo/ an1 aca1!:ic, an1 i/" 1i":i""al "ho#l1 6!n!0i/ all /h! r!";on1!n/". C$%R%FOR%, ;r!:i"!" con"i1!r!1, /h! ;!/i/ion i" 1i":i""!1 an1 /h! R!"ol#/ion" o0 89 +an#ar7 an1 29 March 1992 o0 /h! San1i5an6a7an, Thir1 Di i"ion, ar! a00ir:!1 in toto, =i/h co"/" a5ain"/ /h! ;!/i/ion!r. SO Bellosillo, Vitug !" ) !g !i% !, J(, too* !o + 't( #uisu$%i!g, JJ, ORD%R%D. &o!&u'(

---------------------------------------------------------G.R. No. 83831 January 9, 1992 VICTOR AFRICA, petitioner, vs. PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT, JOSE LA RETA, MEL! IADES G TIERRE", ED ARDO M. VILLAN EVA, ED ARDO DE LOS ANGELES an# ROMAN MA$ANTA, JR., respondents. G.R. No. 8%%9& January 9, 1992 PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT an# PCGG'No()n**+,D*+)-n**+. MEL! IADES G TIERRE", ED ARDO M. VILLAN EVA, RAMON DES ASIDO, ALMARIO P. VELASCO, RAN LFO P. PA/OS an# JOSE P. RO0AS, petitioners. vs. T1E 1ONORA$LE SANDIGAN$A/AN 2T1IRD DIVISION3, JOSE L. AFRICA, MAN EL 1. NIETO, JR., RAFAEL VALDE" an# VICTOR AFRICA, respondents. G.R. No. 8%%94 January 9, 1992 REP $LIC OF T1E P1ILIPPINES 2PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT3, petitioner, vs. T1E 1ONORA$LE SANDIGAN$A/AN 2T1IRD DIVISION3, JOSE L. AFRICA, MAN EL 1. NIETO an# RAFAEL VALDE", respondents. G.R. No. 8%521 January 9, 1992 ED ARDO M. VILLAN EVA, petitioner, vs. T1E 1ONORA$LE SANDIGAN$A/AN 2T1IRD DIVISION3, JOSE L. AFRICA, MAN EL NIETO, RAFAEL C. VALDE" an# PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT,6 respondents.

Victor Africa for petitioner in G.R. No. 83831 Jose L. Africa and Manuel H. Nieto for respondents in G.R. No. 85594 and 8559 . Art!ur ". Li# La$ %ffice for petitioner in G.R. No. 85&'1. Ro#ulo( Ma)anta( *uena+entura( ,a-oc . "e los An/eles for respondents Ma)anta . de los An/eles in 83831 . 85594.

REGALADO, J.: These four cases separately filed before this Court were consolidated pursuant to our resolution of November 22, 1988 1 since they involve issues arising from, incidental or related to the se uestration of !astern Telecommunications "hilippines, #nc. $!T"#% by the "residential Commission on &ood &overnment $"C&&% on 'arch 1(, 198) and the conse uent filing by the "C&& on *uly 22, 198+ of an action for reconveyance, reversion, accounting and restitution of the alleged ill,gotten !T"# shares and damages, doc-eted as Civil Case No. ...9 in the /andiganbayan. /hortly after the "C&& se uestered !T"# on 'arch 1(, 198), the se uestration order was partially lifted in 'ay, 198) when (.0 of the shares of stoc- $Class 121% owned by Cable and 3ireless, 4td. were freed from the effects of se uestration. The remaining ).0 of the shares $Class 151%, however, remained under se uestration. Thereafter, on *uly 22, 198+, the "C&& filed with the /andiganbayan the aforesaid Civil Case No. ...9. /ubse uently, during the annual stoc-holders meeting convened on *anuary 29, 1988 pursuant to a "C&& 6esolution dated *anuary 28, 1988 which called for the resumption of the stoc-holders meeting originally scheduled on *anuary (, 1988, !duardo '. 7illanueva, as "C&& nominee, 6oman 'abanta, *r. and !duardo de los 5ngeles as nominees of the foreign investors, Cable and 3ireless 4td., and *ose 4. 5frica $who was absent% were elected as members of the board of directors. 5n organi8ational meeting was later held where !duardo 7illanueva was elected as president and general manager, while 6amon 9esuasido, 5lmario 7elasco and 6anulfo "ayos were elected as acting corporate secretary, acting treasurer, and acting assistant corporate secretary, respectively. The nomination and election of "C&& nominees:designees to the !T"# 2oard of 9irectors, as well as the election of its new officers, triggered a chain of contentious proceedings before the /andiganbayan and this Court between the members of the !T"# 2oard and its stoc-holders, on the one hand, and the "C&&;s nominees:designees elected !T"# 2oard, on the other hand, in the cases hereinunder discussed. G.R. No. 83831 7ictor 5frica, who claims to be an employee of !T"# holding the positions of vice,president, general counsel $on official leave without pay%, corporate secretary and special assistant to the chairman $and president%, filed directly with this Court on *une <., 1988 a petition for in=unction doc-eted as &.6. No. 8<8<1, see-ing to en=oin the "C&& and its nominees:designees to the board of directors and the newly,installed officers of !T"# from implementing their alleged illegal, invalid and immoral act of ousting him from his offices and positions at the !T"# pending the determination of whether

they have validly, legally and morally assumed their supposed positions and offices as 1directors1 and:or 1officers1 of !T"#. >e contends that the reasons advanced by the "C&&,sponsored board of directors for ousting him from his offices $redundancy, need to conserve company funds and loss of confidence% are flimsy, whimsical and arbitrary, evidencing not only the "C&&,sponsored board;s discriminatory and oppressive attitude towards him but, more importantly, its clear intent to harass him into refraining from uestioning before several tribunals all the invalid, illegal and immoral acts of said "C&&, sponsored board which have caused and are still causing !T"# damages because they constitute dissipation of assets. ?urther claiming that the acts of respondents will wor- in=ustice, unfairness and ine uity to him as they will invalidly, illegally and immorally deprive him of his principal means of livelihood to the detriment of his spouse and three children, petitioner sought the issuance of a writ of preliminary in=unction or a temporary restraining order to en=oin the "C&& from ousting him from his positions and offices effective *une <., 1988. @n *uly 8, 1988, petitioner informed the Court that while a verbal agreement to maintain the status 0uo was reached between petitioner;s lawyers, 5ttys. *uan de @campo and 5ntonio 5frica, and 'essrs. @rlando 6omero and /erafin 6ivera of the "C&&, respondent !duardo '. 7illanueva circulated on *uly A, 1988 an inter,office memorandum easing out the legitimate members of the board from their rooms in the eBecutive offices for the benefit of the newly,installed members of the uestioned "C&& boardC and that #ldefonso 6eynoso, vice,president for administration, issued a memorandum to the Nival /ecurity and "rotective 5gency informing them that they were being relieved of their duty to provide security services at the +th ?loor of Telecoms "la8a where the eBecutive offices are located, which services would then be handled by the ?C5 /ecurity 5gency. 2 @n *uly 1A, 1988, petitioner was allegedly forcibly ta-en out of his office on the basis of a "C&& order which petitioner claimed was addressed not to then "C&& Commissioner 4aureta but to three other "C&& officials, namely, !steban 2. Cone=os, *r., /erafin ". 6ivera and @rlando D. 6omero. 5s a conse uence, petitioner 5frica sought to have then Commissioner 4aureta declared in contempt of court for having committed 1improper conduct tending directly or indirectly, to impede, obstruct or degrade the administration of =ustice.1 3 >e li-ewise sought the issuance of a writ of preliminary mandatory in=unction ordering respondents to open his office and allow him access to and use of the same. G.R. Nos. 8559 and 85&'1 *ose 4. 5frica, 'anuel Nieto and 6afael 7alde8, allegedly the registered stoc-holders of !T"#, instituted on /eptember ), 1988 before the /andiganbayan Civil Case No. ..(8, & a complaint for in=unction and damages with prayer for a temporary restraining order see-ing to en=oin !duardo '. 7illanueva from acting as 19irector, "resident and:or &eneral 'anager1 of !T"# and from eBercising the powers and functions of said positions, as well as to stop the "C&& from directly or indirectly interfering with the management of !T"#. They contend that the assumption of 7illanueva to said positions was effected without due process of law through the "C&& using and voting the se uestered shares without legal =ustification. !duardo '. 7illanueva filed a motion to dismiss:opposition to the issuance of a restraining order on the grounds of lac- of =urisdiction, because the complaint parta-es of the nature of a suit against the /tate without its consentC that plaintiffs are not the real parties in interest in the action, which is actually a 0uo $arranto proceedingC that the complaint is premature for failure to eBhaust administrative remediesC and that the issues raised have already been passed upon by the /upreme

Court in &.6. No. 82188, a recourse against the /ecurities and !Bchange Commission $/!C%, entitled 1"C&&, et al. vs. /!C, et al.1 % The "C&&, on the other hand, opposed the issuance of a writ of preliminary in=unction, contending that the issues raised in Civil Case No. ..(8 have already been passed upon by the /upreme Court in its aforesaid decision in &.6. No. 82188 promulgated on *une <., 1988. 5 #n the proceedings on /eptember 1<, 1988, the "C&&, through /olicitor 6amolete, moved to defer the hearing until after the motion to dismiss of 7illanueva and the ob=ection raised by "C&& shall have been resolved. >owever, the /andiganbayan resolved to hear the evidence on the application for preliminary in=unction with the understanding that the incident shall not be resolved earlier than the resolution of the motion to dismiss and the issue raised by /olicitor 6amolete. 4 5t the scheduled hearing on @ctober 12, 1988, 7illanueva ob=ected to further proceedings without his motion to dismiss being first resolved, contending that since the action is for in=unction and damages, the reception of evidence on the application for preliminary in=unction was tantamount to a hearing on the merits. #n open court, he was overruled and his motion to have the proceedings suspended pending resolution of his motion to dismiss was denied. ?rom the denial of "C&&;s motion to defer hearing and 7illanueva;s motion to suspend proceedings in Civil Case No. ..(8, the "C&& filed on November 12, 1988 a petition for prohibition with prayer for a writ of preliminary in=unction and:or restraining order with this Court, doc-eted as &.6. No. 8AA9+, while 7illanueva filed on November 1), 1988 a separate petition for prohibition with preliminary in=unction and:or restraining order doc-eted as &.6. No. 8A)21. 2oth petitions assail the orders issued by the /andiganbayan, dated /eptember 1<, 1988 and @ctober 12, 1988, as having been issued with grave abuse of discretion amounting to lac- of =urisdiction. @n November 1A, 1988, the Court issued a temporary restraining order
8 in &.6. No. 8AA9+ directing the /andiganbayan to cease and desist from proceeding with its hearing in Civil Case No. ..(8 scheduled on November 18, 1988 at 2E.. p.m. #n the resolution of November 22, 1988, the case was ordered consolidated with the other !T"# cases $&.6. Nos. 8<8<1, 8AA9( and 8A)21%.

G.R. No. 85594 The same plaintiffs in Civil Case No. ..(8, now in their capacity as erstwhile members of the 2oard of 9irectors of !T"#, instituted before the /andiganbayan on /eptember 2<, 1988 Civil Case No. ..A., another action for in=unction and damages with prayer for a writ of preliminary in=unction and:or temporary restraining order. #n their complaint, plaintiffs uestioned the acts and orders of the "C&& leading to the election of therein defendants 'el uiades &utierre8, 'ar- *avier, 6anulfo ". "ayos, *ose ". 6oBas and 5lmario 7elasco, and Cable and 3ireless representatives 6oman 'abanta, *r. and !duardo de los 5ngeles to the !T"# 2oard of 9irectors. Claiming to be the duly elected members of the !T"# 2oard of 9irectors during the *anuary (, 1988 special stoc-holders meeting, plaintiffs prayed that defendants be removed from their !T"# positions, and that an in=unction be issued perpetually restraining the "C&& from electing, designating and supporting the defendants in their !T"# roles. 9 The "C&& 17 and its nominees:designees to the !T"# 2oard, 11 6oman 'abanta, *r. and !duardo de los 5ngeles, 12separately filed their respective motions to dismiss and opposed the issuance of writ of preliminary in=unction:restraining order invo-ing substantially the same grounds proffered in Civil Case No. ..(8, as followsE $1% the court lac-s =urisdiction because plaintiffs may not sue the /tate without its consentC $2% the filing of the complaint is improper because the cause$s% of action alleged and the reliefs sought therein constitute an action for 0uo $arranto, hence plaintiffs are not the proper and real parties in interest to oust or unseat defendantsC and $<% the filing of the complaint is barred by lis pendens, as

plaintiffs should have contested "C&&;s acts in Civil Case No. ...9 $6epublic vs. *ose 4. 5frica, et al.%. 6oman 'abanta, *r. and !duardo de los 5ngeles further maintained that respondent court has no =urisdiction over the nature and sub=ect matter of the complaint insofar as they are concerned, they being Class 2 9irectorsC and that the complaint is barred by the decision of the /upreme Court in &.6. No. 82188.

@n @ctober 21, 1988, or while the motions to dismiss remained pending and prior to the hearing set on November <, 1988 for the issuance of a writ of preliminary in=unction:temporary restraining order, the Cler- of Court of the /andiganbayan issued, upon re uest of the counsel for *ose 4. 5frica, et al. dated @ctober 18, 1988, a subpoenaduces tecu# and ad testificandu# ordering the "C&& or its representatives to appear and testify before the /andiganbayan during the hearing on November <, 1988 at 2E.. p.m. and to produce the stoc- and transfer boo- and all stubs of the outstanding stoccertificates of !T"#. Three days thereafter, or on @ctober 2(, 1988, another subpoena duces tecu# was issued upon an amended re uest for subpoena by the same counsel, ordering 5ssistant /olicitor &eneral 6amon 9esuasido or his representative to appear before the /andiganbayan at the 2E.. p.m. hearing on November <, 1988 and to produce the 1minutes of all meetings of the 2oard of 9irectors and /toc-holders of !T"# held from *anuary 29, 1988 to date.1 The "C&& and its nominee:designee, 6amon 9esuasido, moved to uash both subpoenae, but the motion was denied by the /andiganbayan in an order 13 dated November <, 1988. The hearing was reset to November 1A, 1988 at 2E.. o;cloc- in the afternoon. @n November 1A, 1988, an urgent petition for certiorari, doc-eted as &.6. No. 8AA9(, was filed by the "C&& and its nominees:designees before this Court, assailing as having been issued with grave abuse of discretion the incidental orders dated @ctober 2(, 1988 and November <, 1988 on the principal contention that the /andiganbayan has no =urisdiction over the main action for damages since Civil Case No. ..A. is in truth a suit against the /tate without its consent. The "C&& also prayed for the issuance of a temporary restraining order to en=oin the respondents from enforcing and:or eBecuting the subpoenas dated @ctober 21, 1988 and @ctober 2(, 1988. @n the same date, or on November 1A, 1988, the Court issued a temporary restraining order. 1& The /andiganbayan, in the meantime, proceeded with the main case and, thereafter, on 9ecember 1<, 1988 promulgated a resolution 1% denying the motions to dismiss separately filed by the "C&& and the individual defendants. @n ?ebruary 2<, 1989, the /andiganbayan denied the motion for reconsideration filed by the representatives of Cable and 3ireless, 4td. 15 The "C&& and its nominees opted not to file a motion for reconsideration apparently in the belief that the same would be merely repetitive, if not futile. ?rom the denial of the motion to dismiss, the "C&& and its nominees:designees filed on 'arch 2+, 1989 an Frgent /upplemental "etition in &.6. No. 8AA9( 14 assailing the denial by the /andiganbayan of their motions to dismiss on the grounds that the core sub=ect matter and issue are res 1udicata by virtue of the decision in &.6. No. 82188C that the respondent court lac-s =urisdiction over the caseC that private respondents have no legal capacity to sue and institute a separate actionC and that they are not the real parties in interest. 6ecapping, therefore, from the foregoing narration it appears that the in=unction suits filed and doc-eted as Civil Cases Nos. ..(8 and ..A. in the /andiganbayan and the petition for in=unction filed directly with this Court as &.6. No. 8<8<1 are substantially identical in the reliefs sought therein, that is, to nullify the acts and orders of the "C&& which led to the nomination and election of the

new members of the board of directors and officers of the !T"# and to en=oin said directors and officers from eBercising the powers and functions of said positions. Civil Cases Nos. ..(8 and ..A. were elevated to this Court on some incidental matters relating to the propriety of hearing the cases on the merits without the motions to dismiss filed therein having been first resolvedC and in Civil Case No. ..A., on the additional issue of the legality of the subpoena duces tecu# and ad testificandu# issued by the /andiganbayan ordering the "C&& or its representatives to testify and produce the stoc- and transfer boo-, all stubs of the outstanding stoccertificates of !T"# and the minutes of all meetings of the board of directors and stoc-holders held from *anuary 29, 1988. The issue in Civil Case No. ..A. as to the propriety of hearing the main action for in=unction before resolving the motions to dismiss has been mooted when the /andiganbayan denied said motions to dismiss on 9ecember 1<, 1988. 3e are, however, constrained to go deeper into the issue since the denial of said motions was the sub=ect matter of a supplemental petition in &.6. No. 8AA9(. 3ith respect to &.6. Nos. 8AA9+ and 8A)21, we find that the deferment of the resolution of the motions to dismiss Civil Case No. ..(8 was tainted with grave abuse of discretion. #t is well,settled that while the court has the discretion to defer the hearing and determination of a motion to dismiss if the ground therefor is not indubitable, 18such deferment is in eBcess of =urisdiction if the ground for the motion to dismiss is lac- of =urisdiction or lac- of cause of action, since the allegations of the complaint are deemed admitted and the motion to dismiss can be resolved without waiting for trial on the merits. 19 Clearly, on the face of the complaint, the issue of lac- of =urisdiction invo-ed in the motion to dismiss can be resolved without waiting for trial on the merits as will be shown hereunder. Thus, petitioner 7illanueva is correct in his assertion that his motion to dismiss must first be resolved before trial on the merits may be had. 2e that as it may, this finding merely constitutes a technical victory for said petitioner as it will be rendered moot and academic by the following ruling on the merits of the grounds raised in his motion to dismiss. #n &.6. No. 8A)21, petitioner 7illanueva imputes grave abuse of discretion to the /andiganbayan in proceeding with the hearing of Civil Case No. ..(8. To his mind, the in=unction suit filed by 5frica, Nieto and 7alde8 is in effect a suit against the /tate and, since there is no waiver of immunity by the /tate, respondent court cannot ac uire =urisdiction over the same. 5long the same vein, the "C&& elevated to this Court in &.6. No. 8AA9( the denial of its motion to dismiss Civil Case No. ..A. contending that the /andiganbayan has no =urisdiction to entertain an independent suit against the 6epublic of the "hilippines $"C&&% not only because it is only the 6epublic, without consenting to be sued or countersued, that is allowed to file civil or criminal cases with said court pursuant to !Becutive @rder No. 1(, but also because the cause of action, if any, or the sub=ect matter or nature of the complaint for in=unction are not within the limited or special =urisdiction of the /andiganbayan as defined by /ection (, "residential 9ecree No. 1).), as amended by "residential 9ecree No. 1891, even as such =urisdiction has been enlarged by !Becutive @rder No. 1(. The law and =urisprudence on the =urisdiction of the /andiganbayan over cases for the recovery of 1ill,gotten wealth1 are now settled. #n 23GG +s. Hon. 4##anuel G. 2e5a( etc.( et al., 27 this Court heldE . . . Fnder /ection 2 of the "resident;s !Becutive @rder No. 1( issued on 'ay +, 198), all cases of the Commission regarding 1the ?unds, 'oneys, 5ssets, and

"roperties #llegally 5c uired or 'isappropriated by ?ormer "resident ?erdinand 'arcos, 'rs. #melda 6omualde8 'arcos, their Close 6elatives, /ubordinates, 2usiness 5ssociates, 9ummies, 5gents, or Nominees1 whether civil or criminal, are lodged within the 1eBclusive and original =urisdiction of the /andiganbayan1 and all incidents arising from, incidental to, or related to, such cases necessarily fall li-ewise under the /andiganbayan;s eBclusive and original =urisdiction, sub=ect to review on certiorari eBclusively by the /upreme Court. The afore uoted ruling was reiterated in 23GG +s. Hon. A0uino( Jr.( etc.( et al. and Marcelo 6i)er/lass 3orporation +s. 23GG, 21 which were =ointly decided by the Court on *une <., 1988. #n siB $)% subse uent cases 22 li-ewise =ointly decided on 5ugust 1., 1988, the Court pointed out thatE . . . $the% eBclusive =urisdiction conferred on the /andiganbayan would evidently eBtend not only to the principal causes of action, i.e., the recovery of alleged ill,gotten wealth, but also to 1all incidents arising from, incidental to, or related to, such cases,1 such as the dispute over the sale of shares, the propriety of the issuance of ancillary writs or provisional remedies relative thereto, the se uestration thereof, which may not be made the sub=ect of separate actions or proceedings in another forum. 5 careful eBamination of the records of these cases reveals that the complaints instituted by *ose 4. 5frica, et al. in Civil Cases Nos. ..(8 and ..A. before the /andiganbayan are in the nature of special and original civil actions for in=unction 23 directed against the defendants therein and specially see-ing to restrain them from representing and acting as officers and members of the 2oard of 9irectors of !T"# and to prevent the "C&& from eBercising acts of ownership and:or management over !T"#. 'oreover, in claiming as illegal the acts or orders of the "C&& issued in pursuance of the eBercise of its powers and functions under !Becutive @rders Nos. 1, 2 and 1(, which resulted in the installation of defendants to the 2oard of 9irectors of !T"# and to their corporate offices, plaintiffs *ose 4. 5frica, et al. merely sought to preserve the status 0uo, that is, the last actual, peaceable, uncontested status which preceded the pending controversy. The status 0uo to the plaintiffs was the fact of their election to the 2oard of 9irectors of !T"# during the special stoc-holders meeting on *anuary (, 1988 allegedly pursuant to a valid call, notice and assembly in accordance with law. The issue of =urisdiction of the /andiganbayan over original special civil actions involving the powers and functions of the "C&& has been raised in and resolved by this Court. #n the consolidated cases of 23GG +s. Hon. A0uino( Jr.( etc.( et al. and Marcelo 6i)er/lass 3orporation +s. 23GG( supra, therein private respondent 'arcelo ?iberglass Corporation contested the =urisdiction of the /andiganbayan over special civil actions claiming that /ection 2 of !Becutive @rder No. 1( vested the /andiganbayan with *urisdiction over civil and criminal cases filed by the "C&& but not over special civil actions filed by private partiesC that /ection 2 did not limit the filing of special civil actions by private persons eBclusively with the /andiganbayanC and that "residential 9ecree No. 1).) which created the /andiganbayan did not vest such court with =urisdiction over special civil actions such as those involved therein and as enumerated in /ection ( of "residential 9ecree No. 1).). The Court re=ected such contention, declaring that the attempt to remove special civil actions from the /andiganbayan;s eBclusive =urisdiction is of no avail if they similarly involve the powers and functions of the "C&&. The Court reiterated the pronouncement in 23GG +s. 2e5a( etc., et al., supra, that the /andiganbayan has eBclusive and original =urisdiction in civil or criminal cases involving ill,gotten wealth under !Becutive @rder No. 1(, as well as incidents arising from, incidental or related to such cases, sub=ect to review on certiorari eBclusively by the /upreme Court.

/ince the in=unctive suits filed by *ose 4. 5frica, et al. before the /andiganbayan stemmed from incidents arising from, incidental and related to the partial se uestration of !T"#, the directive enunciated in the 2e5a case that 1those who wish to uestion or challenge the Commission;s acts or orders in such cases must see- recourse in the same court, the /andiganbayan, which is vested with eBclusive and original =urisdiction,1 applies to the instant case. Neither would the principle of immunity of the /tate from suit invo-ed by the "C&& divest the /andiganbayan of its =urisdiction over the complaints for in=unction in both Civil Cases Nos. ..(8 and ..A.. 3hile there were claims for damages alleged in the complaints in both cases, the same are, however, directed against the individual defendants in their personal capacities for having allegedly acted without legal authority and in a manner adverse to the interests of !T"#. 2& #ncorporating a monetary claim in the complaint will not convert the special civil action for in=unction into a mere claim for damages which would otherwise call for the application of the rule on non, suability of the /tate. 2% The complaints for in=unction do not see- money =udgments from nor do they demand any affirmative performance by the /tate in its political capacity which would call for immunity from suit. The doctrine of state immunity from suit applies only in actions resulting in adverse conse uences on the public treasury, whether in the disbursement of funds or loss of property. 25 "laintiffs in both cases sought the intervention of the /andiganbayan to obtain redress for what they perceived to be an arbitrary and illegal deprivation of their proprietary rights in the !T"# by the individual defendants resulting from the latter being installed as directors or officers of !T"# by virtue of the uestioned acts or orders of the "C&&. "laintiffs do not see- to impose pecuniary liabilities against the "C&& as a government entity. 7erily, the "C&& cannot hide behind the aforestated doctrine of immunity of the /tate from suit to bar plaintiffs from going to the courts to see- affirmative reliefs in these actions. /ee-ing further to divest the /andiganbayan of its =urisdiction over the actions for in=unction in Civil Cases Nos. ..(8 and ..A., the "C&& argues that the said actions are barred by res 1udicata because of the prior =udgment in 23GG( et al. +s. ,43( et al. and its companion case, 23GG +s. ,andi/an)a-an( et pl.( supra. #t is the contention of the "C&& that the sub=ect matter and issues in both Civil Cases Nos. ..(8 and ..A. are the very same sub=ect matter and issues raised by 5frica, et al. in /!C Case No. <29+ and in their motion for in=unction in Civil Case No. ...9, both of which were elevated by the "C&& to this Court in &.6. No. 8218). The doctrine of res 1udicata or bar by prior =udgment does not apply in the instant cases. The two issues raised in &.6. No. 82188 related principally to the issue of =urisdiction, namelyE $1% whether or not the /ecurities and !Bchange Commission gravely abused its discretion and acted in eBcess of =urisdiction in /!C Case No. <29+ when it restrained the "C&& from holding the special stoc-holders meeting of the !T"# on 'arch (, 1988C and $2% whether or not the /andiganbayan gravely abused its discretion and acted in eBcess of =urisdiction when it restrained the "C&&, its nominated directors and:or corporate officers, employees, nominees, agents and:or representatives at !T"# from calling and:or holding a stoc-holders meeting and voting the se uestered shares thereat for the purpose of amending the articles of incorporation or by,laws of !T"#, or otherwise effecting substantial changes in policy, programs or practices of said corporation. #n brief, what was obviously raised and resolved by the Court was the scope and eBtent of the authority of the /andiganbayan to issue in=unctive writs on matters involving the eBercise and performance of the powers and functions of the "C&& as conservator in accordance with the ruling in 25/43% +s. 23GG( et al. 24 to prevent the disposal and dissipation of the assets of se uestered companies or businesses.

5lthough the challenge against the temporary restraining order issued by the /ecurities and !Bchange Commission in /!C Case No. <29+ became moot and academic by virtue of the eBpiration of its 2.,day effectivity period, the Court nevertheless ruled that the issuance of the same was tainted with grave abuse of discretion considering that the /!C >earing "anel should have then reali8ed that there eBisted an element in the case which effectively removed it from the =urisdiction of the /!C, to wit, the presence of the "C&& which, as another uasi,=udicial body, is a co,e ual entity over whose actions the /!C has no power of control. The Court, on the other hand, upheld the temporary restraining order issued by the /andiganbayan insofar as it restrained the stoc-holders meeting specifically called for the purpose of ratifying the proposed amendment to delete from !T"#;s articles of incorporation and by,laws the 1right of first refusal1 clause. 6ecogni8ing that the eBercise of the 1right of first refusal1 is an act of strict ownership, the Court ruled that while there may be instances when only through an act of strict ownership can the "C&& be able to prevent the dissipation of assets of a se uestered corporation or business, the situation then presented was nevertheless not one of such instances. /ignificantly, however, the Court found the general in=unction imposed by the /andiganbayan on the "C&& to desist and refrain from calling a stoc-holders meeting for the purpose of electing a new board of directors or effecting substantial changes in the policy, program or practice of the corporation to be too broad as to thereby taint said order with grave abuse of discretion. @n "C&&;s insistence on the rule of bar by prior =udgment, it is readily apparent that one fundamental re uisite for the application of that doctrine of res 1udicata is absent in the instant case, that is, the prior =udgment or order must be a =udgment on the merits of the case. ?or a prior =udgment to constitute a bar to a subse uent case, $1% it must be a final =udgment or order, $2% the court rendering the same must have =urisdiction over the sub=ect matter and over the parties, $<% it must be a =udgment or order on the merits, and $(% there must be between the two cases identity of parties, sub=ect matter, and causes of action. 28 There is no dispute that, substantially, the acts or orders of the "C&& which led to the election of the members of the board of directors and officers of !T"#, as well as all acts done thereafter by the said board, are the incidents which gave rise to the causes of action involved in the in=unction suit in /!C Case No. <29+ and the motion for in=unction in Civil Case No. ...9, both of which gave rise to &.6. No. 82188. There is, accordingly, identity of the incidents upon which the causes of action in Civil Cases Nos. ..(8 and ..A. are based and those of the two cases which gave rise to &.6. No. 82188. >owever, there is nothing, in the pronouncements of the Court in &.6. No. 82188 which finally resolved the merits of the factual issues raised therein by the opposing parties which included, among others, the alleged illegal manner by which the meeting to elect the new board of directors was called and held on *anuary 29, 1988C the ualification, eBperience and probity of those elected to the board contrary to the caveat in *A,43% +s. 23GG( et al.( supra, on the substitution of directors of the board of se uestered corporationsC and the alleged mismanagement of the operations of !T"# by those elected to the board and the corporate offices by the "C&&. 5 cursory reading of the decision would show that the Court merely ruled on the parameters of the =urisdiction of the /andiganbayan to issue in=unctive writs in cases involving the "C&& and "C&&, related matters. #n fact, the Court stressed in &.6. No. 82188 that 1the various motions filed by private respondents in this case involving matters which would re uire us to loo- into the facts of the case are better ventilated before the /andiganbayan.1 Nothing final or definite was laid down by this

Court in that case with respect to the legality or illegality of the uestioned acts or orders of the "C&& leading to the election of its nominees:designees to the !T"# board of directors and corporate offices. The denial, therefore, of the motion to dismiss in Civil Case No. ..A. was not sullied by grave abuse of discretion. 3ith this pronouncement, the denial of the motion to dismiss Civil Case No. ..(8 would li-ewise be proper and necessarily called for. The issue raised in the original petition in &.6. No. 8AA9( relating to the validity of the issuance by the /andiganbayan of the subpoena duces tecu# and ad testificandu# ordering the "C&& or its representative to testify and produce the stoc- and transfer boo-, all stubs of the outstanding stoccertificates of !T"# and the minutes of all meetings of the board of directors and stoc-holders of !T"# held from *anuary 29, 1988 to date was laid to rest by our =oint resolution in two cases, both entitled Repu)lic +s. ,andi/an)a-an and 4duardo 3o1uan/co( Jr., 29 which applies s uarely in the instant petitions. #n upholding therein the right of a stoc-holder of a se uestered company to inspect and:or eBamine the records of a corporation pursuant to /ection +( of the Corporation Code, the Court found nothing in !Becutive @rders Nos. 1, 2 and 1(, as well as in *A,43%, to indicate an implied amendment of the Corporation Code, much less an implied modification of a stoc-holder;s right of inspection as guaranteed by /ection +( thereof. The only eBpress limitation on the right of inspection, according to the Court, is that $1% the right of inspection should be eBercised at reasonable hours on business daysC $2% the person demanding the right to eBamine and copy eBcerpts from the corporate records and minutes has not improperly used any information secured through any previous eBamination of the records of such corporationC and $<% the demand is made in good faith or for a legitimate purpose. The issues raised in &.6. No. 8<8<1, an original petition filed by 7ictor 5frica with this Court, including the motion for contempt filed by !duardo '. 7illanueva against *ose 4. 5frica, 'anuel Nieto and 7ictor 5frica for having made unwarranted comments to the news media on matters involved in the pending petitions, are factual in nature and are best ventilated before the /andiganbayan G the proper forum where both parties can substantiate their respective claims. This Court is not a trier of facts. Considering that Civil Cases Nos. ..(8 and ..A. arose from the partial se uestration of !T"# and the incidents raised before this Court in &.6. Nos. 8AA9(, 8AA9+ and 8A)21 are related to said partial se uestration of !T"#, all the factual matters alleged in these cases are best threshed out in the main case, Civil Case No. ...9, as incidents therein, to save time and efforts in the presentation of evidence and in order to avoid multiplicity of suits. #N 7#!3 @? T>! ?@6!&@#N&, the petitions in &.6. Nos. 8AA9(, 8AA9+ and 8A)21 are hereby 9#/'#//!9 for lac- of merit, and &.6. No. 8<8<1 is 6!?!66!9 to the /andiganbayan for appropriate proceedings. The /andiganbayan is hereby ordered to consolidate &.6. No. 8<8<1 and Civil Cases Nos. ..(8 and ..A. with Civil Case No. ...9. The temporary restraining orders separately issued in &.6. No. 8AA9( and &.6. No. 8AA9+ on November 1A, 1988 are hereby 4#?T!9 and /!T 5/#9!. /@ @69!6!9. Nar+asa( 3.J.( Melencio7Herrera( Gutierre8( Jr.( 3ru8( 2aras( 6eliciano( 2adilla( *idin( Gri5o7A0uino( Medialdea and "a+ide( Jr.( JJ.( concur.

Ro#ero and Nocon( JJ.( too9 no part.

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