Liban v.

Gordon (2011)
G. R. No.175352: January 18, 2011

DANTE V. LIBAN, REYNALDO M. BERNARDO and SALVADOR M. VIARI,

Petitioners vs. RICHARD J. GORDON,Respondent. PHILIPPINE NATIONAL
RED CROSS, Intervenor.

LEONARDO-DE CASTRO, J.:

FACTS: Respondent filed a motion for partial recommendation on a Supreme Court
decision which ruled that being chairman of the Philippine National Red Cross
(PNRC) did not disqualify him from being a Senator, and that the charter creating
PNRC is unconstitutional as the PNRC is a private corporation and the Congress is
precluded by the Constitution to create such.The Court then ordered the PNRC to
incorporate itself with the SEC as a private corporation. Respondent takes exception
to the second part of the ruling, which addressed the constitutionality of the statute
creating the PNRC as a private corporation. Respondent avers that the issue of
constitutionality was only touched upon in the issue of locus standi. It is a rule that
the constitutionality will not be touched upon if it is not the lis mota of the case.

ISSUE: Whether or not it was proper for the Court to have ruled on the
constitutionality of the PNRC statute.

HELD: Petition has merit.

Political Law: It has been consistently held in Jurisprudence that the Court
should exercise judicial restraint when it comes to issues of
constitutionality where it is not the lis mota of the case.

In the case at bar, the constitutionality of the PNRC statute was raised in the issue
of standing. As such, the Court should not have declared certain provisions of such
as unconstitutional. On the substantive issue, the PNRC is sui generis. It is unlike the
private corporations that the Constitution wants to prevent Congress from creating.
First, the PNRC is not organized for profit. It is an organization dedicated to assist
victims of war and administer relief to those who have been devastated by
calamities, among others. It is entirely devoted to public service. It is not covered by
the prohibition since the Constitution aims to eliminate abuse by the Congress,
which tend to favor personal gain. Secondly, the PNRC was created in order to
participate in the mitigation of the effects of war, as embodied in the Geneva
Convention. The creation of the PNRC is compliance with international treaty
obligations. Lastly, the PNRC is a National Society, an auxiliary of the government. It
is not like government instrumentalities and GOCC. The PNRC is regulated directly
by international humanitarian law, as opposed to local law regulating the other
mentioned entities. As such, it was improper for the Court to have declared certain
portions of the PNRC statute as unconstitutional. However, it is the stand of Justice
Carpio that there is no mandate for the Government to create a National Society to
this effect. He also raises the fact that the PNRC is not sui generis in being a private
corporation organized for public needs. Justice Abad is of the opinion that the PNRC
is neither private or governmental, hence it was within the power of Congress to
create.