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Supreme Court courts tells us no more than that the appellant Coates
was a student involved in a demonstration and the
Coates v. City of Cincinnati, 402 U.S. 611 (1971) other appellants were pickets involved in a labor
dispute. For, throughout this litigation, it has been the
No. 117 appellants' position that the ordinance on its face
violates the First and Fourteenth Amendments of the
Argued January 11, 1971 Constitution. Cf. Times Film Corp. v. Chicago, 365 U. S.
43.
Decided June 1, 1971
In rejecting this claim and affirming, the convictions the
402 U.S. 611 Ohio Supreme Court did not give the ordinance any
construction at variance with the apparent plain import
APPEAL FROM THE SUPREME COURT OF OHIO of its language. The court simply stated:
21 Ohio St.2d 66, 255 N.E.2d 247, reversed. "clearly and precisely delineates its reach in words of
common understanding. It is a 'precise and narrowly
STEWART, J., delivered the opinion of the Court, in drawn regulatory statute [ordinance] evincing a
which DOUGLAS, HARLAN, BRENNAN, and MARSHALL, legislative judgment that certain specific conduct be . . .
JJ., joined. BLACK, J., filed a separate proscribed.'"
opinion, post, p. 402 U. S. 616. WHITE, J., filed a
dissenting opinion, in which BURGER, C.J., and 21 Ohio St.2d at 69, 255 N.E.2d at 249.
BLACKMUN, J., joined, post, p. 402 U. S. 617.
Beyond this, the only construction put upon the
MR. JUSTICE STEWART delivered the opinion of the ordinance by the state court was its unexplained
Court. conclusion that "the standard of conduct which it
specifies is not dependent upon each complainant's
A Cincinnati, Ohio, ordinance makes it a criminal sensitivity." Ibid.But the court did not indicate upon
offense for whose sensitivity a violation does depend -- the
sensitivity of the judge or jury, the sensitivity of the
"three or more persons to assemble . . . on any of the arresting officer, or the sensitivity of a hypothetical
sidewalks . . . and there conduct themselves in a reasonable man. [Footnote 3]
manner annoying to persons passing by. . . . [Footnote
1] " Page 402 U. S. 614
Page 402 U. S. 612 We are thus relegated, at best, to the words of the
ordinance itself. If three or more people meet together
The issue before us is whether this ordinance is on a sidewalk or street corner, they must conduct
unconstitutional on its face. themselves so as not to annoy any police officer or
other person who should happen to pass by. In our
The appellants were convicted of violating the opinion, this ordinance is unconstitutionally vague
ordinance, and the convictions were ultimately affirmed because it subjects the exercise of the right of assembly
by a closely divided vote in the Supreme Court of Ohio, to an unascertainable standard, and unconstitutionally
upholding the constitutional validity of the ordinance. broad because it authorizes the punishment of
21 Ohio St.2d 66, 255 N.E.2d 247. An appeal from that constitutionally protected conduct.
judgment was brought here under 28 U.S.C. § 1257(2),
[Footnote 2] and we noted probable jurisdiction, 398
U.S. 902. The record brought before the reviewing
Conduct that annoys some people does not annoy need not lament that we do not have before us the
others. Thus, the ordinance is vague not in the sense details of the conduct found to be annoying. It is the
that it requires a person to conform his conduct to an ordinance on its face that sets the standard of conduct
imprecise but comprehensible normative standard, but and warns against transgression. The details of the
rather in the sense that no standard of conduct is offense could no more serve to validate this ordinance
specified at all. As a result, "men of common than could the details of an offense charged under an
intelligence must necessarily guess at its ordinance suspending unconditionally the right of
meaning." Connally v. General Construction Co., 269 U. assembly and free speech.
S. 385, 269 U. S. 391.
The judgment is reversed.
It is said that the ordinance is broad enough to
encompass many types of conduct clearly within the [Footnote 1]
city's constitutional power to prohibit. And so, indeed,
it is. The city is free to prevent people from blocking "It shall be unlawful for three or more persons to
sidewalks, obstructing traffic, littering streets, assemble, except at a public meeting of citizens, on any
committing assaults, or engaging in countless other of the sidewalks, street corners, vacant lots or mouths
forms of antisocial conduct. It can do so through the of alleys, and there conduct themselves in a manner
enactment and enforcement of ordinances directed annoying to persons passing by, or occupants of
with reasonable specificity toward the conduct to be adjacent buildings. Whoever violates any of the
prohibited. Gregory v. Chicago, 394 U. S. 111, 394 U. S. provisions of this section shall be fined not exceeding
118,394 U. S. 124-125 (BLACK, J., concurring). It cannot fifty dollars ($50.00), or be imprisoned not less than
constitutionally do so through the enactment and one (1) nor more than thirty (30) days or both."
enforcement of an ordinance whose violation may
entirely depend upon whether or not a policeman is Section 901-L6, Code of Ordinances of the City of
annoyed. [Footnote 4] Cincinnati (1956).
But the vice of the ordinance lies not alone in its "Final judgments or decrees rendered by the highest
violation of the due process standard of vagueness. The court of a State in which a decision could be had, may
ordinance also violates the constitutional right of free be reviewed by the Supreme Court as follows: "
assembly and association. Our decisions establish that
mere public intolerance or animosity cannot be the "* * * *"
basis for abridgment of these constitutional
freedoms. See Street v. New York, 394 U. S. 576, 394 U. "(2) By appeal, where is drawn in question the validity
S. 592; Cox v. Louisiana, 379 U. S. 536, 379 U. S. 551- of a statute of any state on the ground of its being
553; Edwards v. South Carolina, 372 U. S. 229, 372 U. S. repugnant to the Constitution, treaties or laws of the
238; Terminiello v. Chicago, 337 U. S. 1; Cantwell v. United States, and the decision is in favor of its validity."
Connecticut, 310 U. S. 296, 310 U. S. 311; Schneider v.
State, 308 U. S. 147, 308 U. S. 161. The First and [Footnote 3]
Fourteenth Amendments do not permit a State to make
criminal the exercise of the right of assembly simply Cf. Chaplinsky v. New Hampshire, 315 U. S. 568, where
because its exercise may be "annoying" to some this Court upheld a statute that punished "offensive,
people. If this were not the rule, the right of the people derisive or annoying" words. The state courts had
to gather in public places for social or political purposes construed the statute as applying only to such words
would be continually subject to summary suspension "as have a direct tendency to cause acts of violence by
through the good faith enforcement of a prohibition the persons to whom, individually, the remark is
against annoying conduct.. [Footnote 5] addressed." The state court also said:
City of Toledo v. Sims, 14 Ohio Op.2d 66, 69, 169 N.E.2d MR. JUSTICE WHITE, with whom THE CHIEF JUSTICE and
516, 520. MR. JUSTICE BLACKMUN join, dissenting.
"plain as a pikestaff that the present confessions would Even accepting the overbreadth doctrine with respect
not be allowed in evidence whatever the school of to statutes clearly reaching speech, the Cincinnati
thought concerning the scope and meaning of the Due ordinance does not purport to bar or regulate speech
Process Clause." as such. It prohibits persons from assembling and
"conduct[ing]" themselves in a manner annoying to
Id. at 341 U. S. 101. The claim of facial vagueness was other persons. Even if the assembled defendants in this
thus rejected. case were demonstrating and picketing, we have long
recognized that picketing is not solely a communicative
So too in United States v. National Dairy Corp., 372 U. S. endeavor, and has aspects which the State is entitled to
29 (1963), where we considered a statute forbidding regulate even though there is incidental impact on
sales of goods at "unreasonably" low prices to injure or speech. In Cox v. Louisiana, 379 U. S. 559 (1965), the
eliminate a competitor, 15 U.S.C. § 13a, we thought the Court held valid on its face a statute forbidding
statute gave a seller adequate notice that sales below picketing and parading near a courthouse. This was
cost were illegal. The statute was therefore not facially deemed a valid regulation of conduct, rather than pure
vague, although it might be difficult to tell whether speech. The conduct reached by the statute was
certain other kinds of conduct fell within this language. "subject to regulation even though [it was] intertwined
We said: with expression and association." Id. at 379 U. S. 563.
The Court then went on to consider the statute as
applied to the facts of record.
Corollary thereto are the following provisions of the Sec. 9. The state shall afford protection
Implementing Rules and Regulations of the Labor Code: to labor, promote full employment and
equality in employment, ensure equal
Sec. 2. Security of Tenure. — In cases of work opportunities regardless of sex,
regular employments, the employer shall race, or creed, and regulate the relations
not terminate the services of an between workers and employers. The
employee except for a just cause as State shall ensure the rights of workers
provided in the Labor Code or when to self-organization, collective
authorized by existing laws. baegaining, security of tenure, and just
and humane conditions of work. The
Sec. 3. Reinstatement. — An employee State may provide for compulsory
who is unjustly dismissed from work shall arbitration. 11
by entitled to reinstatement without loss
of seniority rights and to To be sure, both Charters recognize "security of tenure"
backwages."7 (Emphasis supplied) as one of the rights of labor which the State is
mandated to protect. But there is no gainsaying the fact
Before proceeding any furthers, it needs must be that the intent of the framers of the present
recalled that the present Constitution has gone further Constitution was to give primacy to the rights of labor
than the 1973 Charter in guaranteeing vital social and and afford the sector "full protection," at least greater
economic rights to marginalized groups of society, protection than heretofore accorded them, regardless
including labor. Given the pro-poor orientation of of the geographical location of the workers and
several articulate Commissioners of the Constitutional whether they are organized or not.
Commission of 1986, it was not surprising that a whole
It was then CONCOM Commissioner, now Justice Hilario "inimical to the employer's interest; " 17 or that
G. Davide, Jr., who substantially contributed to the reinstatement may no longer be feasible; 18 or, that it
present formulation of the protection to labor provision will not serve the best interests of the parties
and proposed that the same be incorporated in the involved; 19 or that the company would be prejudiced
Article on Social Justice and not just in the Article on by the workers' continued employment; 20 or that it will
Declaration of Principles and State Policies "in the light not serve any prudent purpose as when supervening
of the special importance that we are giving now to facts have transpired which make execution on that
social justice and the necessity of emphasizing the score unjust or inequitable 21 or, to an increasing
scope and role of social justice in national extent, due to the resultant atmosphere of "antipathy
development." 12 and antagonism" or "strained relations" or
"irretrievable estrangement" between the employer
If we have taken pains to delve into the background of and the employee. 22
the labor provisions in our Constitution and the Labor
Code, it is but to stress that the right of an employee In lieu of reinstatement, the Court has variously
not to be dismissed from his job except for a just or ordered the payment of backwages and separation
authorized cause provided by law has assumed greater pay 23 or solely separation pay. 24
importance under the 1987 Constitution with the
singular prominence labor enjoys under the article on In the case at bar, the law is on the side of private
Social Justice. And this transcendent policy has been respondent. In the first place the wording of the Labor
translated into law in the Labor Code. Under its terms, Code is clear and unambiguous: "An employee who is
where a case of unlawful or unauthorized dismissal has unjustly dismissed from work shall be entitled to
been proved by the aggrieved employee, or on the reinstatement. . . . and to his full backwages. . .
other hand, the employer whose duty it is to prove the ." 25 Under the principlesof statutory construction, if a
lawfulness or justness of his act of dismissal has failed statute is clears plain and free from ambiguity, it must
to do so, then the remedies provided in Article 279 be given its literal meaning and applied without
should find, application. Consonant with this liberalized attempted interpretation. This plain-meaning rule
stance vis-a-vis labor, the legislature even went further or verba legis derived from the maxim index animi
by enacting Republic Act No. 6715 which took effect on sermo est (speech is the index of intention) rests on the
March 2, 1989 that amended said Article to remove any valid presumption that the words employed by, the
possible ambiguity that jurisprudence may have legislature in a statute correctly express its intent or will
generated which watered down the constitutional and preclude the court from construing it
intent to grant to labor "full protection." 13 differently. 26 The legislature is presumed to know the
meaning of the words, to:have used words advisedly,
To go back to the instant case, there being no evidence and to have expressed its intent by the use of such
to show an authorized, much less a legal, cause for the words as are found in the statute.27 Verba legis non est
dismissal of private respondent, she had every right, recedendum, or from the words of a statute there
not only to be entitled to reinstatement, but ay well, to should be no departure. Neither does the provision
full backwages." 14 admit of any qualification. If in the wisdom of the Court,
there may be a ground or grounds for non-application
The intendment of the law in prescribing the twin of the above-cited provision, this should be by way of
remedies of reinstatement and payment of backwages exception, such as when the reinstatement may be
is, in the former, to restore the dismissed employee to inadmissible due to ensuing strained relations between
her status before she lost her job, for the dictionary the employer and the employee.
meaning of the word "reinstate" is "to restore to a
state, conditione positions etc. from which one had In such cases, it should be proved that the employee
been removed"15 and in the latter, to give her back the concerned occupies a position where he enjoys the
income lost during the period of unemployment. Both trust and confidence of his employer; and that it is likely
remedies, looking to the past, would perforce make her that if reinstated, an atmosphere of antipathy and
"whole." antagonism may be generated as to adversely affect
the efficiency and productivity of the employee
Sadly, the avowed intent of the law has at times been concerned.
thwarted when reinstatement has not been
forthcoming and the hapless dismissed employee finds A few examples, will suffice to illustrate the Court's
himself on the outside looking in. application of the above principles: where the
employee is a Vice-President for Marketing and as such,
Over time, the following reasons have been advanced enjoys the full trust and confidence of top
by the Court for denying reinstatement under the facts management; 28 or is the Officer-In-Charge of the
of the case and the law applicable thereto; that extension office of the bank where he works; 29 or is an
reinstatement can no longer be effected in view of the organizer of a union who was in a position to sabotage
long passage of time (22 years of litigation) or because the union's efforts to organize the workers in
of the realities of the situation; 16 or that it would be commercial and industrial establishments; 30 or is a
warehouseman of a non-profit organization whose unverified, was probably true, do not pass this Court's
primary purpose is to facilitate and maximize voluntary test. 36 While we should not condone the acts of
gifts. by foreign individuals and organizations to the disloyalty of an employee, neither should we dismiss
Philippines; 31 or is a manager of its Energy Equipment him on the basis of suspicion derived from speculative
Sales. 32 inferences.
Obviously, the principle of "strained relations" cannot To rely on the Maramara report as a basis for Salazar's
be applied indiscriminately. Otherwisey reinstatement dismissal would be most inequitous because the bulk of
can never be possible simply because some hostility is the findings centered principally oh her friend's alleged
invariably engendered between the parties as a result thievery and anomalous transactions as technical
of litigation. That is human nature. 33 operations' support manager. Said report merely
insinuated that in view of Salazar's special relationship
Besides, no strained relations should arise from a valid with Saldivar, Salazar might have had direct knowledge
and legal act of asserting one's right; otherwise an of Saldivar's questionable activities. Direct evidence
employee who shall assert his right could be easily implicating private respondent is wanting from the
separated from the service, by merely paying his records.
separation pay on the pretext that his relationship with
his employer had already become strained. 34 It is also worth emphasizing that the Maramara report
came out after Saldivar had already resigned from
Here, it has not been proved that the position of private GMCR on May 31, 1984. Since Saldivar did not have the
respondent as systems analyst is one that may be opportunity to refute management's findings, the
characterized as a position of trust and confidence such report remained obviously one-sided. Since the main
that if reinstated, it may well lead to strained relations evidence obtained by petitioner dealt principally on the
between employer and employee. Hence, this does not alleged culpability of Saldivar, without his having had a
constitute an exception to the general rule mandating chance to voice his side in view of his prior resignation,
reinstatement for an employee who has been stringent examination should have been carried out to
unlawfully dismissed. ascertain whether or not there existed independent
legal grounds to hold Salatar answerable as well and,
On the other hand, has she betrayed any confidence thereby, justify her dismissal. Finding none, from the
reposed in her by engaging in transactions that may records, we find her to have been unlawfully dismissed.
have created conflict of interest situations? Petitioner
GMCR points out that as a matter of company policy, it WHEREFORE, the assailed resolution of public
prohibits its employees from involving themselves with respondent National Labor Relations Commission dated
any company that has business dealings with GMCR. December 29, 1987 is hereby AFFIRMED. Petitioner
Consequently, when private respondent Salazar signed GMCR is ordered to REINSTATE private respondent
as a witness to the partnership papers of Concave (a Imelda Salazar and to pay her backwages equivalent to
supplier of Ultra which in turn is also a supplier of her salary for a period of two (2) years only.
GMCR), she was deemed to have placed. herself in an
untenable position as far as petitioner was concerned. This decision is immediately executory.
In the case at bar there is absolutely no evidence to Narvasa, C.J., Padilla, Bidin, Regalado, Davide, Jr.,
show that petitioner's conviction by the trial court was Romero, Bellosillo, Melo, Quiason, Puno, Vitug and
wrongful or that it was the product of malice or gross Kapunan, JJ., concur.
ignorance or gross negligence. To the contrary, the
court had reason to believe that petitioner and his co- Feliciano, J., is on leave.
accused were in league, because petitioner is the
father-in-law of Wilfredo Balderrama and it was
petitioner who bore the victim a grudge because of a
land dispute. Not only that. Petitioner and his # Footnotes
coaccused arrived together in the hut of the victims and
forced their way into it. 1 The statute in pertinent parts provide:
The Court of Appeals ruled there was no conspiracy Sec. 3. Who may File Claims. — The
only because there was no proof that he did or say following may file claims for
anything on the occasion. Said the appellate court. compensation before the Board:
Both eyewitness testimonies fail to show a) any person who was unjustly accused,
the appellant Felicito Basbacio to have convicted, imprisoned but subsequently
committed any act at all. Both fail to released by virtue of a judgment of
show Felicito Basbacio as having said acquittal;
anything at all. Both fail to show Felicito
Basbacio as having committed anything b) any person who was unjustly detained
in furtherance of a conspiracy to commit and released without being charged;
the crimes charged against the
defendants. It seems to be a frail and c) any victim of arbitrary or illegal
flimsy basis on which to conclude that detention by the authorities as defined
conspiracy existed between actual killer in the Revised Penal Code under a final
Wilfredo Balderrama and Felicito judgment of the court; and
Basbacio to commit murder and two
frustrated murders on that night of June d) any person who is a victim of violent
26, 1988. It may be asked: where was crimes. For purposes of this Act, violent
the coming together of the two crimes shall include rape and shall
defendants to an agreement to commit likewise refer to offenses committed
the crimes of murder and frustrated with malice which resulted in death or
murder on two counts? Where was serious physical and/or psychological
Basbacio's contribution to the injuries, permanent incapacity or
commission of the said crimes? Basbacio disability, insanity, abortion, serious
was — as the record shows — nothing trauma, or committed with torture,
but part of the dark shadows of that cruelty or barbarity.
night. . . .
Sec. 4. Award Ceiling. — For victims of
One may take issue with this ruling because precisely unjust imprisonment or detention, the
conspiracy may be shown by concert of action and compensation shall be based on the
other circumstances. Why was petitioner with his son- number of months of imprisonment or
in-law? Why did they apparently flee together? And detention and every fraction thereof
what about the fact that there was bad blood between shall be considered one
petitioner and the victim Federico Boyon? These month: Provided, however, That in no
case shall such compensation exceed
One thousand pesos (P1,000.00) per
month.
xxxx xxxx
Apparently in the exercise of its power granted under Republic Act No. 7922 or the "Cagayan Economic Zone
the above provision, public respondent Act of 1995" enacted on February 24, 1995:
ZAMBOECOZONE Authority passed Resolution No.
2006-08-03 dated August 19, 2006 approving the Section 6. Powers and Functions of the Cagayan
application of private respondent Philippine E-Gaming Economic Zone Authority – The Cagayan Economic
Jurisdiction, Inc. (PEJI) to be a Master Zone Authority shall have the following powers and
Licensor/Regulator of on-line/internet/electronic functions:
gaming/games of chance.
xxxx
PEJI forthwith undertook extensive advertising
campaigns representing itself as such licensor/regulator (f) To operate on its own, either directly or through a
to the international business and gaming community, subsidiary entity, or license to others, tourism-related
drawing the Philippine Amusement and Gaming activities, including games, amusements, recreational
Corporation (PAGCOR) to file the present petition for and sports facilities such as horse-racing, dog-racing
Prohibition which assails the authority of the gambling, casinos, golf courses, and others, under
ZAMBOECOZONE Authority to operate, license, or priorities and standards set by the CEZA;
regulate the operation of games of chance in the
ZAMBOECOZONE. xxxx
PAGCOR contends that R.A. No. 7903, specifically And Republic Act No. 7916 or the "Special Economic
Section 7(f) thereof, does not give power or authority Zone Act of 1995," enacted on February 24, 1995
to the ZAMBOECOZONE Authority to operate, license, authorizing other economic zones established under
the defunct Export Processing Zone Authority (EPZA) The Court finds that, indeed, R.A. No. 7903 does not
and its successor Philippine Economic Zone Authority authorize the ZAMBOECOZONE Authority to operate
(PEZA) to establish casinos and other games of chance and/or license games of chance/gambling.
under the license of PAGCOR by way of the ipso facto
clause, viz: Section 7(f) of R.A. No. 7903 authorizes the
ZAMBOECOZONE Authority "[t]o operate on its own,
SECTION 51. Ipso Facto Clause. - All privileges, benefits, either directly or through a subsidiary entity, or license
advantages or exemptions granted to special economic to others, tourism-related activities, including games,
zones under Republic Act No. 7227 shall ipso facto be amusements and recreational and sports facilities."
accorded to special economic zones already created or
to be created under this Act. The free port status shall It is a well-settled rule in statutory construction that
not be vested upon the new special economic zones. where the words of a statute are clear, plain, and free
from ambiguity, it must be given its literal meaning and
PAGCOR maintains that, compared with the above- applied without attempted interpretation.4
quoted provisions of the ecozone-related statutes,
Section 7(f) of R.A. No. 7903 does not categorically The plain meaning rule or verba legis, derived from the
empower the ZAMBOECOZONE Authority to operate, maxim index animi sermo est (speech is the index of
license, or authorize entities to operate games of intention), rests on the valid presumption that the
chance in the area, as the words "games" and words employed by the legislature in a statute correctly
"amusement" employed therein do not include "games express its intention or will, and preclude the court
of chance." Hence, PAGCOR concludes, from construing it differently. For the legislature is
ZAMBOECOZONE Authority’s grant of license to private presumed to know the meaning of the words, to have
respondent PEJI encroached on its (PAGCOR’s) used them advisedly, and to have expressed the intent
authority under Presidential Decree No. 1869 vis-a-vis by use of such words as are found in the statute. Verba
the above-stated special laws to centralize and regulate legis non est recedendum. From the words of a statute
all games of chance. there should be no departure.5
ZAMBOECOZONE Authority, in its Comment,1 contends The words "game" and "amusement" have definite and
that PAGCOR has no personality to file the present unambiguous meanings in law which are clearly
petition as it failed to cite a superior law which proves different from "game of chance" or "gambling." In its
its claim of having been granted exclusive right and ordinary sense, a "game" is a sport, pastime, or contest;
authority to license and regulate all games of chance while an "amusement" is a pleasurable occupation of
within the Philippines; and that, contrary to PAGCOR’s the senses, diversion, or enjoyment.6 On the other
assertion, the words "games" and "amusements" in hand, a "game of chance" is "a game in which chance
Section 7(f) of R.A. No. 7903 include "games of chance" rather than skill determines the outcome," while
as was the intention of the lawmakers when they "gambling" is defined as "making a bet" or "a play for
enacted the law. value against an uncertain event in hope of gaining
something of value." 7
In its Reply Ex Abundante Ad Cautelam,2 PAGCOR cites
the November 27, 2006 Opinion3 rendered by the A comparison of the phraseology of Section 7(f) of R.A.
Office of the President through Deputy Executive No. 7903 with similar provisions in the three cited
Secretary for Legal Affairs Manuel B. Gaite, the statutes creating ECOZONES shows that while the three
pertinent portions of which read: statutes, particularly R.A. No. 7922 which authorized
the Cagayan Economic Zone Authority to directly or
Coming to the issue at hand, the ZAMBOECOZONE indirectly operate gambling and casinos within its
Charter simply allows the operation of tourism-related jurisdiction, categorically stated that such power was
activitiesincluding games and amusements without being vested in their respective administrative bodies,
stating any form of gambling activity in its grant of R.A. No. 7903 did not.
authority to ZAMBOECOZONE.
The spirit and reason of the statute may be passed
xxxx upon where a literal meaning would lead to absurdity,
contradiction, injustice, or defeat the clear purpose of
In view of the foregoing, we are of the opinion that the lawmakers.8 Not any of these instances is present in
under its legislative franchise (RA 7903), the the case at bar, however. Using the literal meanings of
ZAMBOECOZONE is not authorized to enter into any "games" and "amusement" to exclude "games of
gaming activity by itself unless expressly authorized by chance" and "gambling" does not lead to absurdity,
law or other laws specifically allowing the same. contradiction, or injustice. Neither does it defeat the
(Emphasis and underscoring supplied) intent of the legislators. The lawmakers could have
easily employed the words "games of chance" and
"gambling" or even "casinos" if they had intended to
grant the power to operate the same to the
ZAMBOECOZONE Authority, as what was done in R.A. application of the statute presents the agency with
No. 7922 enacted a day after R.A. No. 7903. But they unique opportunity and experiences for discovering
did not. deficiencies, inaccuracies, or improvements in the
statute.8
The Court takes note of the above-mentioned Opinion
of the Office of the President which, after In fine, Section 7(f) did not grant to the
differentiating the grant of powers between the ZAMBOECOZONE Authority the power to operate
Cagayan Special Economic Zone and the and/or license games of chance/gambling.
ZAMBOECOZONE Authority, states that while the
former is authorized to, among other things, operate WHEREFORE, the petition is GRANTED. Public
gambling casinos and internet gaming, as well as enter respondent Zamboanga Economic Zone Authority is
into licensing agreements, the latter is not. The relevant DIRECTED to CEASE and DESIST from exercising
portions of said Opinion read: jurisdiction to operate, license, or otherwise authorize
and regulate the operation of any games of chance.
The difference in the language and grant of powers to And private respondent Philippine Gaming Jurisdiction,
CEZA and ZAMBOECOZONE is telling. To the former, the Incorporated is DIRECTED to CEASE and DESIST from
grant of powers is not only explicit, but amplified, while operating any games of chance pursuant to the license
to the latter the grant of power is merely what the law granted to it by public respondent.
(RA 7903) states. Not only are the differences in
language telling, it will be noted that both charters of SO ORDERED.
CEZA and ZAMBOECOZONE were signed into law only
one (1) day apart from each other, i.e., February 23, CONCHITA CARPIO MORALES
1995 in the case of ZAMBOECOZONE and February 24, Associate Justice
1995 in the case of CEZA. x x x Accordingly, both laws Acting Chairperson
have to be taken in the light of what Congress intended
them to be, and the distinction that the lawmakers WE CONCUR:
made when they enacted the two laws.
PRESBITERO J.
Coming to the issue at hand, the ZAMBOECOZONE DANTE O. TINGA
VELASCO, JR.
Charter simply allows the operation of tourism-related Associate Justice
Associate Justice
activities including games and amusements without
stating any form of gambling activity in its grant of TERESITA J.
authority to ZAMBOECOZONE. On the other hand, the LEONARDO DE ARTURO D. BRION
grant to CEZA included such activities as horse-racing, CASTRO* Associate Justice
dog-racing and gambling casinos. Associate Justice
xxxx
ATTESTATION
In view of the foregoing, we are of the opinion that
under its legislative franchise (RA 7903), the I attest that the conclusions in the above Decision had
ZAMBOECOZONE is not authorized to enter into any been reached in consultation before the case was
gaming activity by itself unless expressly authorized by assigned to the writer of the opinion of the Court’s
law or other laws specifically allowing the same. Division.
(Emphasis supplied)
CONCHITA CARPIO MORALES
Both PAGCOR and the Ecozones being under the Associate Justice
supervision of the Office of the President, the latter’s Acting Chairperson
interpretation of R.A. No. 7903 is persuasive and
deserves respect under the doctrine of respect for CERTIFICATION
administrative or practical construction. In applying said
doctrine, courts often refer to several factors which Pursuant to Section 13, Article VIII of the Constitution,
may be regarded as bases thereof – factors leading the and the Division Chairperson’s Attestation, I certify that
courts to give the principle controlling weight in the conclusions in the above decision had been reached
particular instances, or as independent rules in in consultation before the case was assigned to the
themselves. These factors include the respect due the writer of the opinion of the Court’s Division.
governmental agencies charged with administration,
their competence, expertness, experience, and informed REYNATO S. PUNO
judgment and the fact that they frequently are the Chief Justice
drafters of the law they interpret; that the agency is the
one on which the legislature must rely to advise it as to
the practical working out of the statute, and practical
Republic of the Philippines On November 23, 2006, a motion to reconsider the
SUPREME COURT denial of Danilo’s appeal was likewise denied.
Manila
On January 16, 2007, the RTC issued the order declaring
SECOND DIVISION its August 2, 2006 decision final and executory and
granting the Motion for Entry of Judgment filed by
G.R. No. 186400 October 20, 2010 Cynthia.
CYNTHIA S. BOLOS, Petitioner, Not in conformity, Danilo filed with the CA a petition
vs. for certiorari under Rule 65 seeking to annul the orders
DANILO T. BOLOS, Respondent. of the RTC as they were rendered with grave abuse of
discretion amounting to lack or in excess of jurisdiction,
DECISION to wit: 1) the September 19, 2006 Order which denied
due course to Danilo’s appeal; 2) the November 23,
MENDOZA, J.: 2006 Order which denied the motion to reconsider the
September 19, 2006 Order; and 3) the January 16, 2007
This is a petition for review on certiorari under Rule 45 Order which declared the August 2, 2006 decision as
of the Rules of Court seeking a review of the December final and executory. Danilo also prayed that he be
10, 2008 Decision1 of the Court of Appeals (CA) in an declared psychologically capacitated to render the
original action for certiorari under Rule 65 entitled essential marital obligations to Cynthia, who should be
"Danilo T. Bolos v. Hon. Lorifel Lacap Pahimna and declared guilty of abandoning him, the family home and
Cynthia S. Bolos," docketed as CA-G.R. SP. No. 97872, their children.
reversing the January 16, 2007 Order of the Regional
Trial Court of Pasig City, Branch 69 (RTC), declaring its As earlier stated, the CA granted the petition and
decision pronouncing the nullity of marriage between reversed and set aside the assailed orders of the RTC.
petitioner and respondent final and executory. The appellate court stated that the requirement of a
motion for reconsideration as a prerequisite to appeal
On July 10, 2003, petitioner Cynthia under A.M. No. 02-11-10-SC did not apply in this case
Bolos (Cynthia) filed a petition for the declaration of as the marriage between Cynthia and Danilo was
nullity of her marriage to respondent Danilo solemnized on February 14, 1980 before the Family
Bolos (Danilo) under Article 36 of the Family Code, Code took effect. It relied on the ruling of this Court in
docketed as JDRC No. 6211. Enrico v. Heirs of Sps. Medinaceli3 to the effect that the
"coverage [of A.M. No. 02-11-10-SC] extends only to
After trial on the merits, the RTC granted the petition those marriages entered into during the effectivity of
for annulment in a Decision, dated August 2, 2006, with the Family Code which took effect on August 3, 1988."
the following disposition:
Cynthia sought reconsideration of the ruling by filing
WHEREFORE, judgment is hereby rendered declaring her Manifestation with Motion for Extension of Time to
the marriage between petitioner CYNTHIA S. BOLOS File Motion for Reconsideration and Motion for Partial
and respondent DANILO T. BOLOS celebrated on Reconsideration [of the Honorable Court’s Decision
February 14, 1980 as null and void ab initio on the dated December 10, 2008]. The CA, however, in its
ground of psychological incapacity on the part of both February 11, 2009 Resolution,4 denied the motion for
petitioner and respondent under Article 36 of the extension of time considering that the 15-day
Family Code with all the legal consequences provided reglementary period to file a motion for
by law. reconsideration is non-extendible, pursuant to Section
2, Rule 40, 1997 Rules on Civil Procedure
Furnish the Local Civil Registrar of San Juan as well as citing Habaluyas v. Japson, 142 SCRA 208. The motion
the National Statistics Office (NSO) copy of this for partial reconsideration was likewise denied.
decision.
Hence, Cynthia interposes the present petition via Rule
SO ORDERED.2 45 of the Rules of Court raising the following
In an order dated September 19, 2006, the RTC denied THE COURT OF APPEALS GRAVELY ERRED IN ISSUING THE
due course to the appeal for Danilo’s failure to file the QUESTIONED DECISION DATED DECEMBER 10, 2008
required motion for reconsideration or new trial, in CONSIDERING THAT:
violation of Section 20 of the Rule on Declaration of
Absolute Nullity of Void Marriages and Annulment of
Voidable Marriages.
A. THE PRONOUNCEMENT OF THE dictum in the aforecited Enrico case, which did not even
HONORABLE COURT IN ENRICO V. SPS. involve a marriage solemnized before the effectivity of
MEDINACELI IS NOT APPLICABLE TO THE the Family Code.
INSTANT CASE CONSIDERING THAT THE
FACTS AND THE ISSUE THEREIN ARE NOT She added that, even assuming arguendo that the
SIMILAR TO THE INSTANT CASE. pronouncement in the said case constituted a decision
on its merits, still the same cannot be applied because
B. ASSUMING ARGUENDO THAT THE of the substantial disparity in the factual milieu of the
PRONOUNCEMENT OF THE HONORABLE Enrico case from this case. In the said case, both the
COURT IS APLLICABLE TO THE INSTANT marriages sought to be declared null were solemnized,
CASE, ITS RULING IN ENRICO V. SPS. and the action for declaration of nullity was filed, after
MEDINACELI IS PATENTLY ERRONEOUS the effectivity of both the Family Code in 1988 and of
BECAUSE THE PHRASE "UNDER THE A.M. No. 02-11-10-SC in 2003. In this case, the marriage
FAMILY CODE" IN A.M. NO. 02-11-10-SC was solemnized before the effectivity of the Family
PERTAINS TO THE WORD "PETITIONS" Code and A.M. No. 02-11-10-SC while the action was
RATHER THAN TO THE WORD filed and decided after the effectivity of both.
"MARRIAGES."
Danilo, in his Comment,6 counters that A.M. No. 02-11-
C. FROM THE FOREGOING, A.M. NO. 02- 10-SC is not applicable because his marriage with
11-10-SC ENTITLED "RULE ON Cynthia was solemnized on February 14, 1980, years
DECLARATION OF ABSOLUTE NULLITY OF before its effectivity. He further stresses the
VOID MARRIAGES AND ANNULMENT OF meritorious nature of his appeal from the decision of
VOIDABLE MARRIAGES" IS APPLICABLE TO the RTC declaring their marriage as null and void due to
MARRIAGES SOLEMNIZED BEFORE THE his purported psychological incapacity and citing the
EFFECTIVITY OF THE FAMILY CODE. mere "failure" of the parties who were supposedly
HENCE, A MOTION FOR "remiss," but not "incapacitated," to render marital
RECONSIDERATION IS A PRECONDITION obligations as required under Article 36 of the Family
FOR AN APPEAL BY HEREIN RESPONDENT. Code.
D. CONSIDERING THAT HEREIN The Court finds the petition devoid of merit.
RESPONDENT REFUSED TO COMPLY
WITH A PRECONDITION FOR APPEAL, A Petitioner insists that A.M. No. 02-11-10-SC governs
RELAXATION OF THE RULES ON APPEAL IS this case. Her stance is unavailing. The Rule on
NOT PROPER IN HIS CASE. Declaration of Absolute Nullity of Void Marriages and
Annulment of Voidable Marriages as contained in A.M.
II No. 02-11-10-SC which the Court promulgated on
March 15, 2003, is explicit in its scope. Section 1 of the
THE COURT OF APPEALS GRAVELY ERRED IN ISSUING THE Rule, in fact, reads:
QUESTIONED RESOLUTION DATED FEBRUARY 11, 2009
CONSIDERING THE FOREGOING AND THE FACTUAL Section 1. Scope – This Rule shall govern petitions for
CIRCUMSTANCES OF THIS CASE. declaration of absolute nullity of void marriages and
annulment of voidable marriages under the Family
III Code of the Philippines.
THE TENETS OF JUSTICE AND FAIR PLAY, THE NOVELTY The Rules of Court shall apply suppletorily.
AND IMPORTANCE OF THE ISSUE AND THE SPECIAL
CIRCUMSTANCES IN THIS CASE JUSTIFY AND WARRANT A The categorical language of A.M. No. 02-11-10-SC
LIBERAL VIEW OF THE RULES IN FAVOR OF THE leaves no room for doubt. The coverage extends only to
PETITIONER. MOREOVER, THE INSTANT PETITION IS those marriages entered into during the effectivity of
MERITORIOUS AND NOT INTENDED FOR DELAY.5 the Family Code which took effect on August 3,
1988.7 The rule sets a demarcation line between
From the arguments advanced by Cynthia, the principal marriages covered by the Family Code and those
question to be resolved is whether or not A.M. No. 02- solemnized under the Civil Code.8
11-10-SC entitled "Rule on Declaration of Absolute
Nullity of Void Marriages and Annulment of Voidable The Court finds Itself unable to subscribe to petitioner’s
Marriages," is applicable to the case at bench. interpretation that the phrase "under the Family Code"
in A.M. No. 02-11-10-SC refers to the word "petitions"
Petitioner argues that A.M. No. 02-11-10-SC is also rather than to the word "marriages."
applicable to marriages solemnized before the
effectivity of the Family Code. According to Cynthia, the A cardinal rule in statutory construction is that when
CA erroneously anchored its decision to an obiter the law is clear and free from any doubt or ambiguity,
there is no room for construction or interpretation. right to appeal is a statutory, not a natural right,
There is only room for application.9 As the statute is nonetheless it is an essential part of our judicial system
clear, plain, and free from ambiguity, it must be given and courts should proceed with caution so as not to
its literal meaning and applied without attempted deprive a party of the right to appeal, but rather,
interpretation. This is what is known as the plain- ensure that every party-litigant has the amplest
meaning rule or verba legis. It is expressed in the opportunity for the proper and just disposition of his
maxim, index animi sermo, or "speech is the index of cause, free from the constraints of technicalities.
intention." Furthermore, there is the maxim verba legis
non est recedendum, or "from the words of a statute In the case at bench, the respondent should be given
there should be no departure."10 the fullest opportunity to establish the merits of his
appeal considering that what is at stake is the
There is no basis for petitioner’s assertion either that sacrosanct institution of marriage.
the tenets of substantial justice, the novelty and
importance of the issue and the meritorious nature of No less than the 1987 Constitution recognizes marriage
this case warrant a relaxation of the Rules in her favor. as an inviolable social institution. This constitutional
Time and again the Court has stressed that the rules of policy is echoed in our Family Code. Article 1 thereof
procedure must be faithfully complied with and should emphasizes its permanence and inviolability, thus:
not be discarded with the mere expediency of claiming
substantial merit.11 As a corollary, rules prescribing the Article 1. Marriage is a special contract of permanent
time for doing specific acts or for taking certain union between a man and a woman entered into in
proceedings are considered absolutely indispensable to accordance with law for the establishment of conjugal
prevent needless delays and to orderly and promptly and family life. It is the foundation of the family and an
discharge judicial business. By their very nature, these inviolable social institution whose nature,
rules are regarded as mandatory.12 consequences, and incidents are governed by law and
not subject to stipulation, except that marriage
The appellate court was correct in denying petitioner’s settlements may fix the property relations during the
motion for extension of time to file a motion for marriage within the limits provided by this Code.
reconsideration considering that the reglementary
period for filing the said motion for reconsideration is This Court is not unmindful of the constitutional policy
non-extendible. As pronounced in Apex Mining Co., Inc. to protect and strengthen the family as the basic
v. Commissioner of Internal Revenue, 13 autonomous social institution and marriage as the
foundation of the family.16
The rule is and has been that the period for filing a
motion for reconsideration is non-extendible. The Court Our family law is based on the policy that marriage is
has made this clear as early as 1986 in Habaluyas not a mere contract, but a social institution in which the
Enterprises vs. Japzon. Since then, the Court has State is vitally interested. The State finds no stronger
consistently and strictly adhered thereto.1avvphil anchor than on good, solid and happy families. The
break up of families weakens our social and moral
Given the above, we rule without hesitation that the fabric and, hence, their preservation is not the concern
appellate court’s denial of petitioner’s motion for alone of the family members.17
reconsideration is justified, precisely because
petitioner’s earlier motion for extension of time did not WHEREFORE, the petition is DENIED.
suspend/toll the running of the 15-day reglementary
period for filing a motion for reconsideration. Under the SO ORDERED.
circumstances, the CA decision has already attained
finality when petitioner filed its motion for JOSE CATRAL MENDOZA
reconsideration. It follows that the same decision was Associate Justice
already beyond the review jurisdiction of this Court.
WE CONCUR:
In fine, the CA committed no reversible error in setting
aside the RTC decision which denied due course to ANTONIO T. CARPIO
respondent’s appeal and denying petitioner’s motion Associate Justice
for extension of time to file a motion for Chairperson
reconsideration.
ANTONIO EDUARDO B. TERESITA J. LEONARDO-
Appeal is an essential part of our judicial system. Its NACHURA DE CASTRO*
purpose is to bring up for review a final judgment of the Associate Justice Associate Justice
lower court. The courts should, thus, proceed with
caution so as not to deprive a party of his right to DIOSDADO M. PERALTA
appeal.14 In the recent case of Almelor v. RTC of Las Associate Justice
Pinas City, Br. 254,15 the Court reiterated: While the
ATTESTATION
ANTONIO T. CARPIO
Associate Justice
Chairperson, Second Division
CERTIFICATION
RENATO C. CORONA
Chief Justice
Republic of the Philippines also to post a cash bond of P100,000 and a surety bond
SUPREME COURT of P50,000, thus:
Manila
Upon approval of the application, the
FIRST DIVISION applicant shall pay a license fee of
P30,000. It shall also post a cash bond of
P100,000 and surety bond of P50,000
from a bonding company acceptable to
G.R. No. 109835 November 22, 1993 the Administration and duly accredited
by the Insurance Commission. The bonds
JMM PROMOTIONS & MANAGEMENT, INC., petitioner, shall answer for all valid and legal
vs. claims arising from violations of the
NATIONAL LABOR RELATIONS COMMISSION and conditions for the grant and use of the
ULPIANO L. DE LOS SANTOS, respondent. license, and/or accreditation
and contracts of employment. The bonds
Don P. Porciuncula for petitioner. shall likewise guarantee compliance with
the provisions of the Code and its
Eulogio Nones, Jr. for private respondent. implementing rules and
regulations relating to recruitment and
placement, the Rules of the
Administration and relevant issuances of
CRUZ, J.: the Department and all liabilities which
the Administration may impose. The
The sole issue submitted in this case is the validity of surety bonds shall include the condition
the order of respondent National Labor Relations that the notice to the principal is notice
Commission dated October 30, 1992, dismissing the to the surety and that any judgment
petitioner's appeal from a decision of the Philippine against the principal in connection with
Overseas Employment Administration on the ground of matters falling under POEA's jurisdiction
failure to post the required appeal bond.1 shall be binding and conclusive on the
surety. The surety bonds shall be co-
The respondent cited the second paragraph of Article terminus with the validity period of
223 of the Labor Code as amended, providing that: license. (Emphasis supplied)
In the case of a judgment involving a In addition, the petitioner claims it has placed in escrow
monetary award, an appeal by the the sum of P200,000 with the Philippine National Bank
employer may be perfected only upon in compliance with Section 17, Rule II, Book II of the
the posting of a cash or surety bond same Rule, "to primarily answer for valid and legal
issued by a reputable bonding company claims of recruited workers as a result of recruitment
duly accredited by the Commission in an violations or money claims."
amount equivalent to the monetary
award in the judgment appealed from. Required to comment, the Solicitor General sustains the
appeal bond requirement but suggest that the rules
and Rule VI, Section 6 of the new Rules of Procedure of cited by the NLRC are applicable only to decisions of the
the NLRC, as amended, reading as follows: Labor Arbiters and not of the POEA. Appeals from
decisions of the POEA, he says, are governed by the
Sec. 6. Bond — In case the decision of a
following provisions of Rule V, Book VII of the POEA
Labor Arbiter involves a monetary
Rules:
award, an appeal by the employer shall
be perfected only upon the posting of a Sec. 5. Requisites for Perfection of
cash or surety bond issued by a Appeal. The appeal shall be filed within
reputable bonding company duly the reglementary period as provided in
accredited by the Commission or the Section 1 of this Rule; shall be under
Supreme Court in an amount equivalent oath with proof of payment of the
to the monetary award. required appeal fee and the posting of a
cash or surety bond as provided in
The petitioner contends that the NLRC committed
Section 6 of this Rule; shall be
grave abuse of discretion in applying these rules to
accompanied by a memorandum of
decisions rendered by the POEA. It insists that the
appeal which shall state the grounds
appeal bond is not necessary in the case of licensed
relied upon and the arguments in
recruiters for overseas employment because they are
support thereof; the relief prayed for;
already required under Section 4, Rule II, Book II of the
and a statement of the date when the
POEA Rules not only to pay a license fee of P30,000 but
appellant received the appealed decision would be depleted if this award were to be enforced
and/or award and proof of service on not against the appeal bond but against the bonds and
the other party of such appeal. the escrow money, making them inadequate for the
satisfaction of the other obligations the recruiter may
A mere notice of appeal without incur.
complying with the other requisites
aforestated shall not stop the running of Indeed, it is possible for the monetary award in favor of
the period for perfecting an appeal. the employee to exceed the amount of P350,000,
which is the sum of the bonds and escrow money
Sec. 6. Bond. In case the decision of the required of the recruiter.
Administration involves a monetary
award, an appeal by the employer shall It is true that these standby guarantees are not
be perfected only upon the posting of a imposed on local employers, as the petitioner observes,
cash or surety bond issued by a but there is a simple explanation for this distinction.
reputable bonding company duly Overseas recruiters are subject to more stringent
accredited by the Commission in an requirement because of the special risks to which our
amount equivalent to the monetary workers abroad are subjected by their foreign
award. (Emphasis supplied) employers, against whom there is usually no direct or
effective recourse. The overseas recruiter is solidarily
The question is, having posted the total bond of liable with a foreign employer. The bonds and the
P150,000 and placed in escrow the amount of P200,000 escrow money are intended to insure more care on the
as required by the POEA Rules, was the petitioner still part of the local agent in its choice of the foreign
required to post an appeal bond to perfect its appeal principal to whom our overseas workers are to be sent.
from a decision of the POEA to the NLRC?
It is a principle of legal hermeneutics that in
It was. interpreting a statute (or a set of rules as in this case),
care should be taken that every part thereof be given
The POEA Rules are clear. A reading thereof readily effect, on the theory that it was enacted as an
shows that in addition to the cash and surety bonds and integrated measure and not as a hodge-podge of
the escrow money, an appeal bond in an amount conflicting provisions. Ut res magis valeat quam
equivalent to the monetary award is required to perfect pereat. 2 Under the petitioner's interpretation, the
an appeal from a decision of the POEA. Obviously, the appeal bond required by Section 6 of the
appeal bond is intended to further insure the payment aforementioned POEA Rule should be disregarded
of the monetary award in favor of the employee if it is because of the earlier bonds and escrow money it has
eventually affirmed on appeal to the NLRC. posted. The petitioner would in effect nullify Section 6
as a superfluity but we do not see any such
It is true that the cash and surety bonds and the money redundancy; on the contrary, we find that Section 6
placed in escrow are supposed to guarantee the complements Section 4 and Section 17. The rule is that
payment of all valid and legal claims against the a construction that would render a provision
employer, but these claims are not limited to monetary inoperative should be avoided; instead, apparently
awards to employees whose contracts of employment inconsistent provisions should be reconciled whenever
have been violated. The POEA can go against these possible as parts of a coordinated and harmonious
bonds also for violations by the recruiter of the whole.
conditions of its license, the provisions of the Labor
Code and its implementing rules, E.O. 247 (reorganizing Accordingly, we hold that in addition to the monetary
POEA) and the POEA Rules, as well as the settlement of obligations of the overseas recruiter prescribed in
other liabilities the recruiter may incur. Section 4, Rule II, Book II of the POEA Rules and the
escrow agreement under Section 17 of the same Rule,
As for the escrow agreement, it was presumably it is necessary to post the appeal bond required under
intended to provide for a standing fund, as it were, to Section 6, Rule V, Book VII of the POEA Rules, as a
be used only as a last resort and not to be reduced with condition for perfecting an appeal from a decision of
the enforcement against it of every claim of recruited the POEA.
workers that may be adjudged against the employer.
This amount may not even be enough to cover such Every intendment of the law must be interpreted in
claims and, even if it could initially, may eventually be favor of the working class, conformably to the mandate
exhausted after satisfying other subsequent claims. of the Constitution. By sustaining rather than annulling
the appeal bond as a further protection to the claimant
As it happens, the decision sought to be appealed employee, this Court affirms once again its
grants a monetary award of about P170,000 to the commitment to the interest of labor.
dismissed employee, the herein private respondent.
The standby guarantees required by the POEA Rules
WHEREFORE, the petition is DISMISSED, with costs
against the petitioner. It is so ordered.
Bellosillo, J, is on leave.
Republic of the Philippines respondents-debtors and/or the transfer
SUPREME COURT of any property by and for the said
Manila respondents-debtors to another, upon
petitioners' putting up a bond by way of
THIRD DIVISION certified and reputable sureties. (Annex
1, Comment).
The antecedent facts of this case, as found by the then On April 15, 1983, petitioner filed an opposition to the
Intermediate Appellate Court, are as follows: said motion vis-a-vis the prayer that the insolvency
order (which has not been rendered yet by the court)
On July 2, 1980, three creditors filed a petition be annotated on the transfer certificates of title already
for the involuntary insolvency of Carlos issued in its name (Annex "D").
Gatmaytan and Teresita Gatmaytan, the private
respondents herein, the case docketed as On April 22, 1983, judgment was rendered declaring
Special Proceeding No. 1548 of the then Court the insolvency of respondents-debtors Carlos
of First Instance (now Regional Trial Court) of Gatmaytan and Teresita Gatmaytan.
Pampanga and Angeles City.
On April 28, 1983, petitioner filed a supplemental
On July 9, 1980, the respondent court issued an opposition to the same second urgent motion and
order taking cognizance of the said petition and motion to direct respondent sheriff to issue a final
stating inter alia that: certificate of sale for the properties covered by TCT
Nos. 18905 and 40430 in its favor (Annex "E").
. . . the Court forbids the payment of any
debts, and the delivery of any property On February 3, 1984, acting upon petitioner's motion
owing and belonging to said claiming that ownership of certain real properties of the
respondents-debtors from other insolvents had passed to it by virtue of foreclosure
persons, or, to any other persons for the proceedings conducted in Civil Case No. 35946 of the
use and benefit of the same former Court of First Instance of Rizal, Branch II, Pasig,
Metro Manila, which properties were not redeemed P20,000.00, for and attorney's fees; and the costs of
within the period of redemption, respondent court suit (Annex "5", Comment). After the said decision in
issued an order disposing, thus: the aforementioned Civil Case No. 35946 became final
and executory, a writ of execution for the satisfaction
WHEREFORE, the Court hereby, confirms the thereof issued on March 18, 1981; and on May 4, 1981,
election of Mr. Emilio C. Patino, as assignee of respondent sheriff of Angeles City sold at auction sale
all the registered claimants in this case, and, in the attached properties covered by TCT Nos. 18905 and
consequence thereof, the said assignee is 40430, to petitioner as the highest bidder, and the
hereby directed to post a bond in the amount of certificate of sale was accordingly issued in its favor.
P30,000.00 and to take his oath thereafter so as
to be able to perform his duties and discharge On September 21, 1982, the court ordered the
his functions, as such. consolidation of ownership of petitioner over said
properties; but respondent sheriff of Angeles City
The Court, likewise, sets the meeting of all the refused to issue a final certificate of sale in favor of
creditors with the attendance, of course, of the petitioner.
assignee, on March 9, 1984, at 8:30., as by that
time the proposals, which the respective On May 30, 1984, petitioners-creditors interposed their
representatives of the parties-claimants desire opposition, stating among other things, that subject
to clear with their principals, shall have already motion is improper and premature because it treats of
been reported. matters foreign to the insolvency proceedings; and
premature, for the reason that the properties covered
The assignee shall see to it that the properties by TCT Nos. 18905 and 40430-Angeles City were
of the insolvents which are now in the actual or brought to the jurisdiction of the insolvency court for
constructive custody and management of the the determination of the assets of the insolvents
receiver previously appointed by the Court on available for distribution to the approved
petitioners' and claimants' proposals be placed credits/liabilities of the insolvents. Petitioners-creditors
under this actual or constructive custody and theorized that the insolvency court is devoid of
management, such as he is able to do so, as the jurisdiction to grant the motion referring to matters
Court hereby dissolves the receivership involved in a case pending before a coordinate court in
previously authorized, it having become a another jurisdiction (Annex "l").
superfluity. (Annex "F").
Prior thereto or on July 13, 1984, to be precise,
On May 18, 1984, the Regional Trial Court, Branch CLII, respondent court came out with its assailed extended
Pasig, Metro Manila, in Civil Case No. 35946, issued an order with the following decretal portion:
order directing respondent Sheriff of Angeles City, or
whoever is acting in his behalf, to issue within seven (7) WHEREFORE, and also for the reason stated in
days from notice thereof a final deed of sale over the the aforequoted order issued in pursuance of a
two (2) parcels of land covered by Transfer Certificates similar motion of the movant, the Court denies,
of Titles Nos. 18905 and 40430 in favor of petitioner. as it is hereby denied the motion of Radiola-
(Annex "G"). Toshiba, dated May 28, 1984 and directs the
latter to participate in the supposed meeting of
In said Civil Case No. 35946, a case for collection of sum all the creditors/claimants presided by the duly
of money covering the proceeds of television sets and elected assignee. (Annex "J").
other appliances, the then Court of First Instance of
Rizal, Branch II, Pasig, Metro Manila, issued a writ of On September 8, 1984, herein petitioner Radiola-
preliminary attachment on February 15, 1980 upon Toshiba Philippines, Inc. (RTPI, for short) filed a petition
application of the petitioner, as plaintiff, which put up a for certiorari and mandamus with respondent
bond of P350,000.00. On March 4, 1980, 3:00 P.M., levy Intermediate Appellate Court.
on attachment was done in favor of petitioner on the
real properties registered in the names of spouses The then Intermediate Appellate Court, in a Decision
Carlos Gatmaytan and Teresita Gatmaytan under TCT promulgated on March 31, 1986, denied petitioner's
Nos. 18905 and 40430 of the Registry of Deeds of aforesaid petition. On April 19, 1986, petitioner filed a
Angeles City, per Entry No. 7216 on said titles. (Annex motion for reconsideration, but the same was denied in
"A" and "B"). a Resolution dated July 1, 1986.
On December 10, 1980, a decision was rendered in Hence, the instant petition. Herein petitioner raised
favor of petitioner, ordering private respondents and two issues —
their co-defendant Peoples Appliance Center, Inc. to
pay petitioner, jointly and severally, the sum of 1. WHETHER OR NOT CERTIORARI IS A REMEDY
P721,825.91 plus interest thereon of 14% per DESIGNATED FOR THE CORRECTION OF ERRORS OF
annum from October 12, 1979 until fully paid; JURISDICTION ONLY; and
2. WHETHER OR NOT THE REFUSAL OF THE COURTS TO Sec. 79. When an attachment has been made
ENFORCE THE LIEN OF PETITIONER ARISING FROM A and is not dissolved before the commencement
LEVY OF ATTACHMENT NOT MADE WITHIN ONE of proceedings in insolvency, or is dissolved by
MONTH NEXT PRECEDING THE COMMENCEMENT OF an undertaking given by the defendant, if the
THE INSOLVENCY PROCEEDING IS GRAVE ABUSE OF claim upon which the attachment suit was
DISCRETION. commenced is proved against the estate of the
debtor, the plaintiff may prove the legal costs
The main issue in this case is whether or not the levy on and disbursements of the suit, and of the
attachment in favor of the petitioner is dissolved by the keeping of the property, and the amount
insolvency proceedings against respondent spouses thereof shall be a preferred debt.
commenced four months after said attachment.
and the fact that petitioner and its counsel have full
On this issue, Section 32 of the Insolvency Law (Act No. knowledge of the proceedings in the insolvent case,
1956, as amended), provides: argue that the subsequent Certificate of Sale on August
3, 1981, issued in favor of petitioner over the subject
Sec. 32 — As soon as an assignee is elected or properties, was issued in bad faith, in violation of the
appointed and qualified, the clerk of the court law and is not equitable for the creditors of the
shall, by an instrument under his hand and seal insolvent debtors; and pursuant to the above quoted
of the court, assign and convey to the assignee Section 79, petitioner should not be entitled to the
all the real and personal property, estate, and transfer of the subject properties in its name.
effects of the debtor with all his deeds, books,
and papers relating thereto, and such Petitioner's contention is impressed with
assignment shall relate back to the merit.1âwphi1 The provision of the above-quoted
commencement of the proceedings in Section 32, of the Insolvency Law is very clear — that
insolvency, and shall relate back to the acts attachments dissolved are those levied within one (1)
upon the adjudication was founded, and by month next preceding the commencement of the
operation of law shall vest the title to all such insolvency proceedings and judgments vacated and set
property, estate, and effects in the assignee, aside are judgments entered in any action, including
although the same is then attached on mesne judgment entered by default or consent of the debtor,
process, as the property of the debtor. Such where the action was filed within thirty (30) days
assignment shall operate to vest in the assignee immediately prior to the commencement of the
all of the estate of the insolvent debtor not insolvency proceedings. In short, there is a cut off
exempt by law from execution. It shall dissolve period — one (1) month in attachment cases and thirty
any attachment levied within one month next (30) days in judgments entered in actions commenced
preceding the commencement of the insolvency prior to the insolvency proceedings. Section 79, on the
proceedings and vacate and set aside any other hand, relied upon by private respondents,
judgment entered in any action commenced provides for the right of the plaintiff if the attachment is
within thirty days immediately prior to the not dissolved before the commencement of
commencement of insolvency proceedings and proceedings in insolvency, or is dissolved by an
shall set aside any judgment entered by default undertaking given by the defendant, if the claim upon
or consent of the debtor within thirty days which the attachment suit was commenced is proved
immediately prior to the commencement of the against the estate of the debtor. Therefore, there is no
insolvency proceedings. (Emphasis supplied) conflict between the two provisions.
Relative thereto, the findings of the then Intermediate But even granting that such conflict exists, it may be
Appellate Court are undisputed that the levy on stated that in construing a statute, courts should adopt
attachment against the subject properties of the a construction that will give effect to every part of a
Gatmaytans, issued by the then Court of First Instance statute, if at all possible. This rule is expressed in the
of Pasig in Civil Case No. 35946, was on March 4, 1980 maxim, ut maqis valeat quam pereat or that
while the insolvency proceeding in the then Court of construction is to be sought which gives effect to the
First Instance of Angeles City, Special Proceeding No. whole of the statute — its every word. Hence, where a
1548, was commenced only on July 2, 1980, or more statute is susceptible of more than one interpretation,
than four (4) months after the issuance of the said the court should adopt such reasonable and beneficial
attachment. Under the circumstances, petitioner construction as will render the provision thereof
contends that its lien on the subject properties operative and effective and harmonious with each
overrode the insolvency proceeding and was not other (Javellana vs. Tayo, 6 SCRA 1042 [1962]; Statutory
dissolved thereby. Construction by Ruben E. Agpalo, p. 182).
Private respondents, on the other hand, relying on Neither can the sheriff's sale in execution of the
Section 79 of the said law, which reads: judgment in favor of the petitioner be considered as a
fraudulent transfer or preference by the insolvent
debtors, which constitute a violation of Sec. 70 of the
Insolvency Law. In the case of Velayo vs. Shell Co. of the
Philippines (100 Phil. 187, [1956]), this Court ruled that
Sections 32 and 70 contemplate only acts and
transactions occurring within 30 days prior to the
commencement of the proceedings in insolvency and,
consequently, all other acts outside of the 30-day
period cannot possibly be considered as coming within
the orbit of their operation.
SO ORDERED.
HANNAH EUNICE D. SERANA, petitioner, The undersigned Special Prosecution Officer III,
vs. Office of the Special Prosecutor, hereby accuses
SANDIGANBAYAN and PEOPLE OF THE HANNAH EUNICE D. SERANA and JADE IAN D.
PHILIPPINES, respondents. SERANA of the crime of Estafa, defined and
penalized under Paragraph 2(a), Article 315 of
DECISION the Revised Penal Code, as amended committed
as follows:
REYES, R.T., J.:
That on October, 24, 2000, or sometime prior or
CAN the Sandiganbayan try a government subsequent thereto, in Quezon City, Metro
scholaran** accused, along with her brother, of Manila, Philippines, and within the
swindling government funds? jurisdiction of this Honorable Court, above-
named accused, HANNAH EUNICE D. SERANA, a
MAAARI bang litisin ng Sandiganbayan ang isang iskolar high-ranking public officer, being then the
ng bayan, at ang kanyang kapatid, na kapwa Student Regent of the University of the
pinararatangan ng estafa ng pera ng bayan? Philippines, Diliman, Quezon City, while in the
performance of her official functions,
The jurisdictional question is posed in this petition for committing the offense in relation to her
certiorari assailing the Resolutions1 of the office and taking advantage of her position, with
Sandiganbayan, Fifth Division, denying petitioner’s intent to gain, conspiring with her brother, JADE
motion to quash the information and her motion for IAN D. SERANA, a private individual, did then
reconsideration. and there wilfully, unlawfully and feloniously
defraud the government by falsely and
The Antecedents fraudulently representing to former President
Joseph Ejercito Estrada that the renovation of
Petitioner Hannah Eunice D. Serana was a senior the Vinzons Hall of the University of the
student of the University of the Philippines-Cebu. A Philippines will be renovated and renamed as
student of a state university is known as a government "President Joseph Ejercito Estrada Student Hall,"
scholar. She was appointed by then President Joseph and for which purpose accused HANNAH
Estrada on December 21, 1999 as a student regent of EUNICE D. SERANA requested the amount of
UP, to serve a one-year term starting January 1, 2000 FIFTEEN MILLION PESOS (P15,000,000.00),
and ending on December 31, 2000. Philippine Currency, from the Office of the
President, and the latter relying and believing
In the early part of 2000, petitioner discussed with on said false pretenses and misrepresentation
President Estrada the renovation of Vinzons Hall Annex gave and delivered to said accused Land Bank
in UP Diliman.2 On September 4, 2000, petitioner, with Check No. 91353 dated October 24, 2000 in the
her siblings and relatives, registered with the Securities amount of FIFTEEN MILLION PESOS
and Exchange Commission the Office of the Student (P15,000,000.00), which check was
Regent Foundation, Inc. (OSRFI).3 subsequently encashed by accused Jade Ian D.
Serana on October 25, 2000 and
One of the projects of the OSRFI was the renovation of
misappropriated for their personal use and
the Vinzons Hall Annex.4 President Estrada gave Fifteen
benefit, and despite repeated demands made
Million Pesos (P15,000,000.00) to the OSRFI as financial
upon the accused for them to return aforesaid
assistance for the proposed renovation. The source of
amount, the said accused failed and refused to
the funds, according to the information, was the Office
do so to the damage and prejudice of the
of the President.
government in the aforesaid amount.
The renovation of Vinzons Hall Annex failed to
CONTRARY TO LAW. (Underscoring supplied)
materialize.5 The succeeding student regent, Kristine
Clare Bugayong, and Christine Jill De Guzman, Secretary Petitioner moved to quash the information. She
General of the KASAMA sa U.P., a system-wide alliance claimed that the Sandiganbayan does not have any
of student councils within the state university,
jurisdiction over the offense charged or over her In a Resolution dated November 14, 2003, the
person, in her capacity as UP student regent. Sandiganbayan denied petitioner’s motion for lack of
merit.15 It ratiocinated:
Petitioner claimed that Republic Act (R.A.) No. 3019, as
amended by R.A. No. 8249, enumerates the crimes or The focal point in controversy is the jurisdiction
offenses over which the Sandiganbayan has of the Sandiganbayan over this case.
jurisdiction.8 It has no jurisdiction over the crime
of estafa.9 It only has jurisdiction over crimes covered It is extremely erroneous to hold that only
by Title VII, Chapter II, Section 2 (Crimes Committed by criminal offenses covered by Chapter II, Section
Public Officers), Book II of the Revised Penal Code 2, Title VII, Book II of the Revised Penal Code are
(RPC). Estafa falling under Title X, Chapter VI (Crimes within the jurisdiction of this Court. As correctly
Against Property), Book II of the RPC is not within the pointed out by the prosecution, Section 4(b) of
Sandiganbayan’s jurisdiction. R.A. 8249 provides that the Sandiganbayan also
has jurisdiction over other offenses committed
She also argued that it was President Estrada, not the by public officials and employees in relation to
government, that was duped. Even assuming that she their office. From this provision, there is no
received the P15,000,000.00, that amount came from single doubt that this Court has jurisdiction over
Estrada, not from the coffers of the government.10 the offense of estafa committed by a public
official in relation to his office.
Petitioner likewise posited that the Sandiganbayan had
no jurisdiction over her person. As a student regent, Accused-movant’s claim that being merely a
she was not a public officer since she merely member in representation of the student body,
represented her peers, in contrast to the other regents she was never a public officer since she never
who held their positions in an ex officio capacity. She received any compensation nor does she fall
addsed that she was a simple student and did not under Salary Grade 27, is of no moment, in view
receive any salary as a student regent. of the express provision of Section 4 of Republic
Act No. 8249 which provides:
She further contended that she had no power or
authority to receive monies or funds. Such power was Sec. 4. Jurisdiction – The Sandiganbayan shall
vested with the Board of Regents (BOR) as a whole. exercise exclusive original jurisdiction in all cases
Since it was not alleged in the information that it was involving:
among her functions or duties to receive funds, or that
the crime was committed in connection with her official (A) x x x
functions, the same is beyond the jurisdiction of the
Sandiganbayan citing the case of Soller v. (1) Officials of the executive branch occupying
Sandiganbayan.11 the positions of regional director and higher,
otherwise classified as Grade "27" and higher, of
The Ombudsman opposed the motion.12 It disputed the Compensation and Position Classification
petitioner’s interpretation of the law. Section 4(b) of Act of 1989 (Republic Act No. 6758), specifically
Presidential Decree (P.D.) No. 1606 clearly contains including:
the catch -all phrase "in relation to office," thus, the
Sandiganbayan has jurisdiction over the charges against xxxx
petitioner. In the same breath, the prosecution
countered that the source of the money is a matter of (g) Presidents, directors or trustees, or managers
defense. It should be threshed out during a full-blown of government-owned or controlled
trial.13 corporations, state universities or educational
institutions or foundations. (Italics supplied)
According to the Ombudsman, petitioner, despite her
protestations, iwas a public officer. As a member of the It is very clear from the aforequoted provision
BOR, she hads the general powers of administration that the Sandiganbayan has original exclusive
and exerciseds the corporate powers of UP. Based on jurisdiction over all offenses involving the
Mechem’s definition of a public office, petitioner’s officials enumerated in subsection
stance that she was not compensated, hence, not a (g), irrespective of their salary grades, because
public officer, is erroneous. Compensation is not an the primordial consideration in the inclusion of
essential part of public office. Parenthetically, these officials is the nature of their
compensation has been interpreted to include responsibilities and functions.
allowances. By this definition, petitioner was
compensated.14 Is accused-movant included in the
contemplated provision of law?
Sandiganbayan Disposition
A meticulous review of the existing Charter of Petitioner is now before this Court, contending that
the University of the Philippines reveals that the "THE RESPONDENT COURT COMMITTED GRAVE ABUSE
Board of Regents, to which accused-movant OF DISCRETION AMOUNTING TO LACK AND/OR EXCESS
belongs, exclusively exercises the general OF JURISDICTION IN NOT QUASHING THE
powers of administration and corporate powers INFORMATION AND DISMISING THE CASE
in the university, such as: 1) To receive and NOTWITHSTANDING THAT IS HAS NO JURISDICTION
appropriate to the ends specified by law such OVER THE OFFENSE CHARGED IN THE INFORMATION."19
sums as may be provided by law for the support
of the university; 2) To prescribe rules for its In her discussion, she reiterates her four-fold argument
own government and to enact for the below, namely: (a) the Sandiganbayan has no
government of the university such general jurisdiction over estafa; (b) petitioner is not a public
ordinances and regulations, not contrary to law, officer with Salary Grade 27 and she paid her tuition
as are consistent with the purposes of the fees; (c) the offense charged was not committed in
university; and 3) To appoint, on relation to her office; (d) the funds in question
recommendation of the President of the personally came from President Estrada, not from the
University, professors, instructors, lecturers and government.
other employees of the University; to fix their
compensation, hours of service, and such other Our Ruling
duties and conditions as it may deem proper; to
grant to them in its discretion leave of absence The petition cannot be granted.
under such regulations as it may promulgate,
any other provisions of law to the contrary Preliminarily, the denial of a motion to
notwithstanding, and to remove them for cause quash is not correctible by certiorari.
after an investigation and hearing shall have
been had. We would ordinarily dismiss this petition
for certiorari outright on procedural grounds. Well-
It is well-established in corporation law that the established is the rule that when a motion to quash in a
corporation can act only through its board of criminal case is denied, the remedy is not a petition
directors, or board of trustees in the case of for certiorari, but for petitioners to go to trial, without
non-stock corporations. The board of directors prejudice to reiterating the special defenses invoked in
or trustees, therefore, is the governing body of their motion to quash.20 Remedial measures as regards
the corporation. interlocutory orders, such as a motion to quash, are
frowned upon and often dismissed.21 The evident
It is unmistakably evident that the Board of reason for this rule is to avoid multiplicity of appeals in
Regents of the University of the Philippines is a single action.22
performing functions similar to those of the
Board of Trustees of a non-stock corporation. In Newsweek, Inc. v. Intermediate Appellate Court,23 the
This draws to fore the conclusion that being a Court clearly explained and illustrated the rule and the
member of such board, accused-movant exceptions, thus:
undoubtedly falls within the category of public
officials upon whom this Court is vested with As a general rule, an order denying a motion to
original exclusive jurisdiction, regardless of the dismiss is merely interlocutory and cannot be
fact that she does not occupy a position subject of appeal until final judgment or order is
classified as Salary Grade 27 or higher under the rendered. (Sec. 2 of Rule 41). The ordinary
Compensation and Position Classification Act of procedure to be followed in such a case is to file
1989. an answer, go to trial and if the decision is
adverse, reiterate the issue on appeal from the
Finally, this court finds that accused-movant’s final judgment. The same rule applies to an
contention that the same of P15 Million was order denying a motion to quash, except that
received from former President Estrada and not instead of filing an answer a plea is entered and
from the coffers of the government, is a matter no appeal lies from a judgment of acquittal.
a defense that should be properly ventilated
during the trial on the merits of this case.16 This general rule is subject to certain exceptions.
If the court, in denying the motion to dismiss or
On November 19, 2003, petitioner filed a motion for motion to quash, acts without or in excess of
reconsideration.17 The motion was denied with finality jurisdiction or with grave abuse of discretion,
in a Resolution dated February 4, 2004.18 then certiorari or prohibition lies. The reason is
that it would be unfair to require the defendant
Issue or accused to undergo the ordeal and expense
of a trial if the court has no jurisdiction over the
subject matter or offense, or is not the court of
proper venue, or if the denial of the motion to We first address petitioner’s contention that the
dismiss or motion to quash is made with grave jurisdiction of the Sandiganbayan is determined by
abuse of discretion or a whimsical and Section 4 of R.A. No. 3019 (The Anti-Graft and Corrupt
capricious exercise of judgment. In such cases, Practices Act, as amended). We note that petitioner
the ordinary remedy of appeal cannot be plain refers to Section 4 of the said law yet quotes Section 4
and adequate. The following are a few examples of P.D. No. 1606, as amended, in her motion to quash
of the exceptions to the general rule. before the Sandiganbayan.25She repeats the reference
in the instant petition for certiorari26 and in her
In De Jesus v. Garcia (19 SCRA 554), upon the memorandum of authorities.27
denial of a motion to dismiss based on lack of
jurisdiction over the subject matter, this Court We cannot bring ourselves to write this off as a mere
granted the petition for certiorari and clerical or typographical error. It bears stressing that
prohibition against the City Court of Manila and petitioner repeated this claim twice despite corrections
directed the respondent court to dismiss the made by the Sandiganbayan.28
case.
Her claim has no basis in law. It is P.D. No. 1606, as
In Lopez v. City Judge (18 SCRA 616), upon the amended, rather than R.A. No. 3019, as amended, that
denial of a motion to quash based on lack of determines the jurisdiction of the Sandiganbayan. A
jurisdiction over the offense, this Court granted brief legislative history of the statute creating the
the petition for prohibition and enjoined the Sandiganbayan is in order. The Sandiganbayan was
respondent court from further proceeding in created by P.D. No. 1486, promulgated by then
the case. President Ferdinand E. Marcos on June 11, 1978. It was
promulgated to attain the highest norms of official
In Enriquez v. Macadaeg (84 Phil. 674), upon the conduct required of public officers and employees,
denial of a motion to dismiss based on improper based on the concept that public officers and
venue, this Court granted the petition for employees shall serve with the highest degree of
prohibition and enjoined the respondent judge responsibility, integrity, loyalty and efficiency and shall
from taking cognizance of the case except to remain at all times accountable to the people.29
dismiss the same.
P.D. No. 1486 was, in turn, amended by P.D. No.
In Manalo v. Mariano (69 SCRA 80), upon the 1606 which was promulgated on December 10, 1978.
denial of a motion to dismiss based on bar by P.D. No. 1606 expanded the jurisdiction of the
prior judgment, this Court granted the petition Sandiganbayan.30
for certiorari and directed the respondent judge
to dismiss the case. P.D. No. 1606 was later amended by P.D. No. 1861 on
March 23, 1983, further altering the Sandiganbayan
In Yuviengco v. Dacuycuy (105 SCRA 668), upon jurisdiction. R.A. No. 7975 approved on March 30, 1995
the denial of a motion to dismiss based on the made succeeding amendments to P.D. No. 1606, which
Statute of Frauds, this Court granted the was again amended on February 5, 1997 by R.A. No.
petition for certiorari and dismissed the 8249. Section 4 of R.A. No. 8249 further modified the
amended complaint. jurisdiction of the Sandiganbayan. As it now stands, the
Sandiganbayan has jurisdiction over the following:
In Tacas v. Cariaso (72 SCRA 527), this Court
granted the petition for certiorari after the Sec. 4. Jurisdiction. - The Sandiganbayan shall
motion to quash based on double jeopardy was exercise exclusive original jurisdiction in all cases
denied by respondent judge and ordered him to involving:
desist from further action in the criminal case
except to dismiss the same. A. Violations of Republic Act No. 3019, as
amended, other known as the Anti-Graft and
In People v. Ramos (83 SCRA 11), the order Corrupt Practices Act, Republic Act No. 1379,
denying the motion to quash based on and Chapter II, Section 2, Title VII, Book II of the
prescription was set aside on certiorari and the Revised Penal Code, where one or more of the
criminal case was dismissed by this Court.24 accused are officials occupying the following
positions in the government, whether in a
We do not find the Sandiganbayan to have committed a permanent, acting or interim capacity, at the
grave abuse of discretion. time of the commission of the offense:
The jurisdiction of the Sandiganbayan is (1) Officials of the executive branch occupying
set by P.D. No. 1606, as amended, not by the positions of regional director and higher,
R.A. No. 3019, as amended. otherwise classified as Grade "27" and higher, of
the Compensation and Position Classification
Act of 989 (Republic Act No. 6758), specifically " In cases where none of the accused are
including: occupying positions corresponding to Salary
Grade "27'" or higher, as prescribed in the said
" (a) Provincial governors, vice-governors, Republic Act No. 6758, or military and PNP
members of the sangguniang panlalawigan, and officer mentioned above, exclusive original
provincial treasurers, assessors, engineers, and jurisdiction thereof shall be vested in the proper
other city department heads; regional court, metropolitan trial court,
municipal trial court, and municipal circuit trial
" (b) City mayor, vice-mayors, members of court, as the case may be, pursuant to their
the sangguniang panlungsod, city treasurers, respective jurisdictions as provided in Batas
assessors, engineers, and other city department Pambansa Blg. 129, as amended.
heads;
" The Sandiganbayan shall exercise exclusive
"(c ) Officials of the diplomatic service occupying appellate jurisdiction over final judgments,
the position of consul and higher; resolutions or order of regional trial courts
whether in the exercise of their own original
" (d) Philippine army and air force colonels, jurisdiction or of their appellate jurisdiction as
naval captains, and all officers of higher rank; herein provided.
" (e) Officers of the Philippine National Police " The Sandiganbayan shall have exclusive
while occupying the position of provincial original jurisdiction over petitions for the
director and those holding the rank of senior issuance of the writs of mandamus,
superintended or higher; prohibition, certiorari, habeas corpus,
injunctions, and other ancillary writs and
" (f) City and provincial prosecutors and their processes in aid of its appellate jurisdiction and
assistants, and officials and prosecutors in the over petitions of similar nature, including quo
Office of the Ombudsman and special warranto, arising or that may arise in cases filed
prosecutor; or which may be filed under Executive Order
Nos. 1, 2, 14 and 14-A, issued in 1986: Provided,
" (g) Presidents, directors or trustees, or That the jurisdiction over these petitions shall
managers of government-owned or controlled not be exclusive of the Supreme Court.
corporations, state universities or educational
institutions or foundations. " The procedure prescribed in Batas Pambansa
Blg. 129, as well as the implementing rules that
" (2) Members of Congress and officials thereof the Supreme Court has promulgated and may
classified as Grade "27'" and up under the thereafter promulgate, relative to
Compensation and Position Classification Act of appeals/petitions for review to the Court of
1989; Appeals, shall apply to appeals and petitions for
review filed with the Sandiganbayan. In all cases
" (3) Members of the judiciary without prejudice elevated to the Sandiganbayan and from the
to the provisions of the Constitution; Sandiganbayan to the Supreme Court, the Office
of the Ombudsman, through its special
" (4) Chairmen and members of Constitutional prosecutor, shall represent the People of the
Commission, without prejudice to the provisions Philippines, except in cases filed pursuant to
of the Constitution; and Executive Order Nos. 1, 2, 14 and 14-A, issued in
1986.
" (5) All other national and local officials
classified as Grade "27'" and higher under the " In case private individuals are charged as co-
Compensation and Position Classification Act of principals, accomplices or accessories with the
1989. public officers or employees, including those
employed in government-owned or controlled
B. Other offenses of felonies whether simple or corporations, they shall be tried jointly with said
complexed with other crimes committed by the public officers and employees in the proper
public officials and employees mentioned in courts which shall exercise exclusive jurisdiction
subsection a of this section in relation to their over them.
office.
" Any provisions of law or Rules of Court to the
C. Civil and criminal cases filed pursuant to and contrary notwithstanding, the criminal action
in connection with Executive Order Nos. 1, 2, 14 and the corresponding civil action for the
and 14-A, issued in 1986. recovery of civil liability shall, at all times, be
simultaneously instituted with, and jointly
determined in, the same proceeding by the Sandiganbayan has jurisdiction over
Sandiganbayan or the appropriate courts, the the offense of estafa.
filing of the criminal action being deemed to
necessarily carry with it the filing of the civil Relying on Section 4 of P.D. No. 1606, petitioner
action, and no right to reserve the filing such contends that estafa is not among those crimes
civil action separately from the criminal action cognizable by the Sandiganbayan. We note that in
shall be recognized: Provided, however, That hoisting this argument, petitioner isolated the first
where the civil action had heretofore been filed paragraph of Section 4 of P.D. No. 1606, without regard
separately but judgment therein has not yet to the succeeding paragraphs of the said provision.
been rendered, and the criminal case is
hereafter filed with the Sandiganbayan or the The rule is well-established in this jurisdiction that
appropriate court, said civil action shall be statutes should receive a sensible construction so as to
transferred to the Sandiganbayan or the avoid an unjust or an absurd conclusion.33 Interpretatio
appropriate court, as the case may be, for talis in ambiguis semper fienda est, ut evitetur
consolidation and joint determination with the inconveniens et absurdum. Where there is ambiguity,
criminal action, otherwise the separate civil such interpretation as will avoid inconvenience and
action shall be deemed abandoned." absurdity is to be adopted. Kung saan mayroong
kalabuan, ang pagpapaliwanag ay hindi dapat maging
Upon the other hand, R.A. No. 3019 is a penal statute mahirap at katawa-tawa.
approved on August 17, 1960. The said law represses
certain acts of public officers and private persons alike Every section, provision or clause of the statute must be
which constitute graft or corrupt practices or which expounded by reference to each other in order to
may lead thereto.31 Pursuant to Section 10 of R.A. No. arrive at the effect contemplated by the
3019, all prosecutions for violation of the said law legislature.34 The intention of the legislator must be
should be filed with the Sandiganbayan.32 ascertained from the whole text of the law and every
part of the act is to be taken into view.35 In other
R.A. No. 3019 does not contain an enumeration of the words, petitioner’s interpretation lies in direct
cases over which the Sandiganbayan has jurisdiction. In opposition to the rule that a statute must be
fact, Section 4 of R.A. No. 3019 erroneously cited by interpreted as a whole under the principle that the best
petitioner, deals not with the jurisdiction of the interpreter of a statute is the statute itself.36 Optima
Sandiganbayan but with prohibition on private statuti interpretatrix est ipsum statutum. Ang isang
individuals. We quote: batas ay marapat na bigyan ng kahulugan sa kanyang
kabuuan sa ilalim ng prinsipyo na ang pinakamainam na
Section 4. Prohibition on private individuals. – interpretasyon ay ang mismong batas.
(a) It shall be unlawful for any person having
family or close personal relation with any public Section 4(B) of P.D. No. 1606 reads:
official to capitalize or exploit or take advantage
of such family or close personal relation by B. Other offenses or felonies whether simple or
directly or indirectly requesting or receiving any complexed with other crimes committed by the
present, gift or material or pecuniary advantage public officials and employees mentioned in
from any other person having some business, subsection a of this section in relation to their
transaction, application, request or contract office.
with the government, in which such public
official has to intervene. Family relation shall Evidently, the Sandiganbayan has jurisdiction over other
include the spouse or relatives by consanguinity felonies committed by public officials in relation to their
or affinity in the third civil degree. The word office. We see no plausible or sensible reason to
"close personal relation" shall include close exclude estafa as one of the offenses included in
personal friendship, social and fraternal Section 4(bB) of P.D. No. 1606. Plainly, estafa is one of
connections, and professional employment all those other felonies. The jurisdiction is simply subject
giving rise to intimacy which assures free access to the twin requirements that (a) the offense is
to such public officer. committed by public officials and employees mentioned
in Section 4(A) of P.D. No. 1606, as amended, and that
(b) It shall be unlawful for any person knowingly (b) the offense is committed in relation to their office.
to induce or cause any public official to commit
any of the offenses defined in Section 3 hereof. In Perlas, Jr. v. People,37 the Court had occasion to
explain that the Sandiganbayan has jurisdiction over an
In fine, the two statutes differ in that P.D. No. 1606, as indictment for estafa versus a director of the National
amended, defines the jurisdiction of the Sandiganbayan Parks Development Committee, a government
while R.A. No. 3019, as amended, defines graft and instrumentality. The Court held then:
corrupt practices and provides for their penalties.
The National Parks Development Committee public officer.39 The 1987 Constitution does not define
was created originally as an Executive who are public officers. Rather, the varied definitions
Committee on January 14, 1963, for the and concepts are found in different statutes and
development of the Quezon Memorial, Luneta jurisprudence.
and other national parks (Executive Order No.
30). It was later designated as the National Parks In Aparri v. Court of Appeals,40 the Court held that:
Development Committee (NPDC) on February 7,
1974 (E.O. No. 69). On January 9, 1966, Mrs. A public office is the right, authority, and duty
Imelda R. Marcos and Teodoro F. Valencia were created and conferred by law, by which for a
designated Chairman and Vice-Chairman given period, either fixed by law or enduring at
respectively (E.O. No. 3). Despite an attempt to the pleasure of the creating power, an individual
transfer it to the Bureau of Forest Development, is invested with some portion of the sovereign
Department of Natural Resources, on December functions of the government, to be exercise by
1, 1975 (Letter of Implementation No. 39, him for the benefit of the public ([Mechem
issued pursuant to PD No. 830, dated November Public Offices and Officers,] Sec. 1). The right to
27, 1975), the NPDC has remained under the hold a public office under our political system is
Office of the President (E.O. No. 709, dated July therefore not a natural right. It exists, when it
27, 1981). exists at all only because and by virtue of some
law expressly or impliedly creating and
Since 1977 to 1981, the annual appropriations conferring it (Mechem Ibid., Sec. 64). There is no
decrees listed NPDC as a regular government such thing as a vested interest or an estate in an
agency under the Office of the President and office, or even an absolute right to hold office.
allotments for its maintenance and operating Excepting constitutional offices which provide
expenses were issued direct to NPDC (Exh. 10-A, for special immunity as regards salary and
Perlas, Item Nos. 2, 3). tenure, no one can be said to have any vested
right in an office or its salary (42 Am. Jur. 881).
The Sandiganbayan’s jurisdiction over estafa was
reiterated with greater firmness in Bondoc v. In Laurel v. Desierto,41 the Court adopted the definition
Sandiganbayan.38Pertinent parts of the Court’s ruling in of Mechem of a public office:
Bondoc read:
"A public office is the right, authority and duty,
Furthermore, it is not legally possible to transfer created and conferred by law, by which, for a
Bondoc’s cases to the Regional Trial Court, for given period, either fixed by law or enduring at
the simple reason that the latter would not have the pleasure of the creating power, an individual
jurisdiction over the offenses. As already above is invested with some portion of the sovereign
intimated, the inability of the Sandiganbayan to functions of the government, to be exercised by
hold a joint trial of Bondoc’s cases and those of him for the benefit of the public. The individual
the government employees separately charged so invested is a public officer."42
for the same crimes, has not altered the nature
of the offenses charged, as estafa thru Petitioner claims that she is not a public officer with
falsification punishable by penalties higher than Salary Grade 27; she is, in fact, a regular tuition fee-
prision correccional or imprisonment of six paying student. This is likewise bereft of merit. It is not
years, or a fine of P6,000.00, committed by only the salary grade that determines the jurisdiction of
government employees in conspiracy with the Sandiganbayan. The Sandiganbayan also has
private persons, including Bondoc. These crimes jurisdiction over other officers enumerated in P.D. No.
are within the exclusive, original jurisdiction of 1606. In Geduspan v. People,43 We held that while the
the Sandiganbayan. They simply cannot be first part of Section 4(A) covers only officials with Salary
taken cognizance of by the regular courts, apart Grade 27 and higher, its second part specifically
from the fact that even if the cases could be so includes other executive officials whose positions may
transferred, a joint trial would nonetheless not not be of Salary Grade 27 and higher but who are by
be possible. express provision of law placed under the jurisdiction of
the said court. Petitioner falls under the jurisdiction of
Petitioner UP student regent the Sandiganbayan as she is placed there by express
is a public officer. provision of law.44
Petitioner also contends that she is not a public officer. Section 4(A)(1)(g) of P.D. No. 1606 explictly vested the
She does not receive any salary or remuneration as a Sandiganbayan with jurisdiction over Presidents,
UP student regent. This is not the first or likely the last directors or trustees, or managers of government-
time that We will be called upon to define a public owned or controlled corporations, state universities or
officer. In Khan, Jr. v. Office of the Ombudsman, We educational institutions or foundations. Petitioner falls
ruled that it is difficult to pin down the definition of a under this category. As the Sandiganbayan pointed out,
the BOR performs functions similar to those of a board Clearly, there was no grave abuse of discretion on the
of trustees of a non-stock corporation.45 By express part of the Sandiganbayan when it did not quash the
mandate of law, petitioner is, indeed, a public officer as information based on this ground.
contemplated by P.D. No. 1606.
Source of funds is a defense that should
Moreover, it is well established that compensation is be raised during trial on the merits.
not an essential element of public office.46 At most, it is
merely incidental to the public office.47 It is contended anew that the amount came from
President Estrada’s private funds and not from the
Delegation of sovereign functions is essential in the government coffers. Petitioner insists the charge has no
public office. An investment in an individual of some leg to stand on.
portion of the sovereign functions of the government,
to be exercised by him for the benefit of the public We cannot agree. The information alleges that the
makes one a public officer.48 funds came from the Office of the President and not its
then occupant, President Joseph Ejercito Estrada.
The administration of the UP is a sovereign function in Under the information, it is averred that "petitioner
line with Article XIV of the Constitution. UP performs a requested the amount of Fifteen Million Pesos
legitimate governmental function by providing (P15,000,000.00), Philippine Currency, from the Office
advanced instruction in literature, philosophy, the of the President, and the latter relying and believing on
sciences, and arts, and giving professional and technical said false pretenses and misrepresentation gave and
training.49 Moreover, UP is maintained by the delivered to said accused Land Bank Check No. 91353
Government and it declares no dividends and is not a dated October 24, 2000 in the amount of Fifteen
corporation created for profit.50 Million Pesos (P15,000,000.00)."
The offense charged was committed Again, the Court sustains the Sandiganbayan
in relation to public office, according observation that the source of the P15,000,000 is a
to the Information. matter of defense that should be ventilated during the
trial on the merits of the instant case.54
Petitioner likewise argues that even assuming that she
is a public officer, the Sandiganbayan would still not A lawyer owes candor, fairness
have jurisdiction over the offense because it was not and honesty to the Court.
committed in relation to her office.
As a parting note, petitioner’s counsel, Renato G. dela
According to petitioner, she had no power or authority Cruz, misrepresented his reference to Section 4 of P.D.
to act without the approval of the BOR. She adds there No. 1606 as a quotation from Section 4 of R.A. No.
was no Board Resolution issued by the BOR authorizing 3019. A review of his motion to quash, the instant
her to contract with then President Estrada; and that petition for certiorari and his memorandum, unveils the
her acts were not ratified by the governing body of the misquotation. We urge petitioner’s counsel to observe
state university. Resultantly, her act was done in a Canon 10 of the Code of Professional Responsibility,
private capacity and not in relation to public office. specifically Rule 10.02 of the Rules stating that "a
lawyer shall not misquote or misrepresent."
It is axiomatic that jurisdiction is determined by the
averments in the information.51 More than that, The Court stressed the importance of this rule
jurisdiction is not affected by the pleas or the theories in Pangan v. Ramos,55 where Atty Dionisio D. Ramos
set up by defendant or respondent in an answer, a used the name Pedro D.D. Ramos in connection with a
motion to dismiss, or a motion to quash.52 Otherwise, criminal case. The Court ruled that Atty. Ramos
jurisdiction would become dependent almost entirely resorted to deception by using a name different from
upon the whims of defendant or respondent.53 that with which he was authorized. We severely
reprimanded Atty. Ramos and warned that a repetition
In the case at bench, the information alleged, in no may warrant suspension or disbarment.56
uncertain terms that petitioner, being then a student
regent of U.P., "while in the performance of her official We admonish petitioner’s counsel to be more careful
functions, committing the offense in relation to her and accurate in his citation. A lawyer’s conduct before
office and taking advantage of her position, with intent the court should be characterized by candor and
to gain, conspiring with her brother, JADE IAN D. fairness.57 The administration of justice would gravely
SERANA, a private individual, did then and there suffer if lawyers do not act with complete candor and
wilfully, unlawfully and feloniously defraud the honesty before the courts.58
government x x x." (Underscoring supplied)
WHEREFORE, the petition is DENIED for lack of merit.
SO ORDERED.
Ynares-Santiago, Chairperson, Austria-Martinez,
Corona*, Nachura, JJ., concur.