Digests

The cases arise from claims for refund or tax credit of accumulated unutilized input VAT filed by Mindanao I and Mindanao II Geothermal Partnerships, generation companies operating geothermal power plants under Build-Operate-Transfer contracts with the Philippine National Oil Corporation – Energy Development Company. Following the enactment of Republic Act No. 9136 (the Electric Power Industry Reform Act of 2000), which amended the National Internal Revenue Code to subject sales of generated power to VAT zero-rating instead of the regular 10% VAT rate, both companies filed claims in 2005 for unutilized input taxes paid during the taxable year 2003. The core dispute centers on the proper com…

The two-year prescriptive period for filing administrative claims for refund or credit of unutilized input VAT attributable to zero-rated sales is reckoned from the close of the taxable quarter when the sales were made pursuant to Section 112(A) of the National Internal Revenue Code of 1997, while the 120-day waiting period for the Commissioner to decide administrative claims and the subsequent 30-day period to file judicial appeals are mandatory and jurisdictional prerequisites under Section 112(C); however, taxpayers who filed claims between December 10, 2003 and October 6, 2010 may invoke BIR Ruling No. DA-489-03 as an exception to the strict application of the 120+30 day periods based o…

Al-Amanah Islamic Bank owned a 2,000‑square‑meter lot in Magtu‑od, Davao City, covered by TCT No. 138914. Members of PELA, an association of landless informal settlers, built houses on the property. In December 1992, the bank’s Davao branch demanded that they vacate or, if interested, purchase the lot. PELA offered to buy at ₱100.00 per square meter, which the bank refused. The bank reiterated its demand to vacate. PELA subsequently made a new offer, which the bank’s officer-in-charge annotated, triggering the dispute over whether a perfected sale had been reached. While negotiations with PELA were pending, the bank accepted a higher offer from petitioner Robern Development Corporation, lea…

A contract of sale is perfected only when there is a meeting of minds upon the determinate object and the price certain; an annotation merely acknowledging receipt of an offer and stating that processing will take effect upon a deposit does not constitute acceptance, and a bid deposit required before entertaining an offer is not earnest money that implies perfection. Absent an unequivocal expression of consent to the offered price, the transaction remains at the negotiation stage and no binding sale arises.

Bankard, Inc., a corporation engaged in the credit card business, implemented a Manpower Rationalization Program (MRP) in December 1999 as a cost-cutting measure to enhance operational efficiency and competitiveness. The program invited employees to tender voluntary resignations in exchange for separation pay equivalent to at least two months' salary per year of service, with eligible employees receiving additional retirement benefits. Following the implementation of the MRP, wherein majority of employees in the Phone Center and Service Fulfillment Division availed of the program, Bankard contracted an independent agency to handle its call center operations. The Bankard Employees Union-AWAT…

An employer's contracting out of services or functions being performed by union members does not constitute unfair labor practice under Article 248(c) of the Labor Code absent substantial evidence proving that the employer acted with intent to interfere with, restrain, or coerce employees in the exercise of their right to self-organization. The burden of proving such intent rests on the party alleging unfair labor practice.

Manuel D. Marañon, Jr. filed a complaint for collection of a sum of money and damages against Tomas Cuenca, Marcelina Cuenca, and Milagros Cuenca (the Cuencas) in the Regional Trial Court (RTC) of Parañaque, later amending the complaint to implead Bramie T. Tayactac. Marañon secured a writ of preliminary attachment conditioned upon a surety bond posted by Stronghold Insurance Company, Inc. The sheriff levied upon equipment and personal properties located at the corporate office of Arc Cuisine, Inc., allegedly owned by the defendants. The Cuencas and Tayactac challenged the jurisdiction of the RTC, contending the dispute was intra-corporate and within the Securities and Exchange Commission's…

Stockholders of a corporation cannot claim damages for the wrongful attachment of corporate property in their own names, as the corporation alone, by virtue of its separate and distinct juridical personality, is the real party in interest entitled to recover for injuries to its assets; allowing stockholders to recover such damages would constitute an unlawful appropriation and distribution of corporate assets before the payment of debts and termination of corporate existence.

Salve Dealca Latosa filed a complaint in 1988 to recover a portion of her residential land in Sorsogon City, alleging that Henry Amado Roxas had extended his concrete fence on to her property. Roxas, in turn, filed a third-party complaint against OLFI, claiming that he had been forced to encroach on Latosa’s lot because OLFI had earlier trimmed 92 square meters from his own property for a subdivision road. After trial, the RTC found for Latosa against Roxas and also ordered OLFI to reimburse Roxas for the 92-square-meter area it had taken. The reimbursement provision became the central dispute upon execution.

Under Articles 448 and 450 of the Civil Code, the reimbursement due from a builder for land encroached upon must be valued at the prevailing market value at the time of payment, not at the original acquisition cost. A corporate officer’s separate assets cannot be reached by execution for a corporate liability unless the proponent presents clear and convincing evidence of wrongdoing warranting the piercing of the corporate veil.

Forest Hills Golf & Country Club is a domestic non-profit stock corporation operating a golf and country club in Antipolo City, created through a joint venture between Kings Properties Corporation (40% shares) and Fil-Estate Golf and Development, Inc. (FEGDI) (60% shares). In August 1997, FEGDI sold one Class "C" common share to RS Asuncion Construction Corporation (RSACC), which subsequently transferred its interests to Vertex Sales and Trading, Inc.

A corporation whose shares of stock are the subject of a sale is not a party to the transaction and cannot be held liable to return the purchase price upon rescission of the sale, except to the extent it received payment for specific privileges actually enjoyed by the buyer.

Retired Lt. Gen. Jacinto C. Ligot served in the Armed Forces of the Philippines for 33 years and 2 months, retiring on August 17, 2004. He and his wife Erlinda have four children—Paulo, Riza, George, and Miguel—all of majority age. The Office of the Ombudsman, after investigation, recommended that the Anti-Money Laundering Council (AMLC) investigate the Ligots for possible money laundering under RA No. 9160, as amended, based on allegations of unexplained wealth totaling over ₱54 million. The Ombudsman also identified Mrs. Ligot's brother, Edgardo Tecson Yambao, as a possible dummy of the Ligot spouses, noting that properties registered in Yambao's name were acquired despite his lack of sub…

A freeze order under the Anti-Money Laundering Act may be extended by the Court of Appeals for a period not exceeding six months under Section 53(b) of the Rule in Civil Forfeiture Cases (A.M. No. 05-11-04-SC); an indefinite extension violates the property owner's constitutional right to due process. The six-month period is ordinarily sufficient for the government to file the appropriate civil forfeiture case and secure an asset preservation order; absent justification for further extension, the property owner must be allowed to fully enjoy his property.

Rizal Commercial Banking Corporation (RCBC), Metropolitan Bank and Trust Co. (Metrobank), and Union Bank of the Philippines (Union Bank) are banking corporations that extended loans and credit accommodations to Paper City Corporation of the Philippines, a domestic corporation engaged in the manufacture of paper products. RCBC was substituted by Star Two (SPV-AMC), Inc. as petitioner by virtue of Republic Act No. 9182, the Special Purpose Vehicle Act of 2002, under which RCBC sold the subject loan account to Star Two, thereby subrogating the latter to RCBC's rights. The loans were secured first by chattel mortgages on machineries and equipment, and later by a Mortgage Trust Indenture (MTI) a…

Machineries and equipment bolted to buildings on mortgaged land are included in the extrajudicial foreclosure of the real estate mortgage where the Mortgage Trust Indenture and its amendments expressly list them as mortgaged properties and describe them as forming part of the improvements on the mortgaged parcels of land. The real estate mortgages, being subsequent to the chattel mortgages, superseded the latter, and the foreclosure petition's prayer for foreclosure of "real properties, including all improvements thereon" encompassed the machineries and equipment.

Rita Jaime and her daughter-in-law Cynthia Jaime were partners in a jewelry business. Sometime in September 2000, petitioner Ramoncita O. Senador obtained jewelry from them on a consignment basis under a Trust Receipt Agreement, obligating her to remit the proceeds or return the unsold items within fifteen days. When Senador failed to comply, a criminal complaint for estafa was filed against her.

In offenses against property, an erroneous designation of the offended party in the information is immaterial and does not violate the accused's right to be informed of the nature and cause of the accusation if the subject matter of the offense is specific and identifiable, rather than generic.

The case addresses the conflict between the Civil Service Commission’s rules on compulsory retirement at age 65 and the nature of appointments in local water districts under P.D. No. 198. It clarifies the legal effect of R.A. No. 9286 on the classification of the General Manager position, which was previously terminable at the pleasure of the Board of Directors without need for administrative due process.

The position of General Manager of a local water district is a primarily confidential, non-career position, and the amendment by R.A. No. 9286 requiring removal only "for cause and after due process" did not convert it into a career position; therefore, a coterminous appointment to this position is valid even if the appointee has exceeded the compulsory retirement age of 65, provided the term is coterminous with the appointing authority or subject to its pleasure.

TIDCORP operates as the government's export credit agency under Presidential Decree No. 1080, as amended by Republic Act No. 8494. Section 7 of RA 8494 grants its Board of Directors exclusive authority to create organizational structures and staffing patterns and expressly exempts the corporation from existing laws on compensation, position classification, and qualification standards, provided it endeavors to conform as closely as possible with the principles of RA 6758 (the Compensation and Position Classification Act). In August 2001, TIDCORP appointed Arsenio de Guzman as Financial Management Specialist IV under a reorganization plan approved by its Board.

A government-owned and controlled corporation specifically exempted by its charter from laws on position classification, compensation, and qualification standards is not bound by Civil Service Commission rules requiring strict conformity with the Department of Budget and Management's Position Allocation List and Index of Occupational Service, where the charter mandates only that the corporation "endeavor to conform as closely as possible" with the principles of the general compensation law.

TIDCORP was created under Presidential Decree No. 1080, as amended by Republic Act No. 8494, which renamed the Philippine Export and Foreign Loan Guarantee Corporation and reorganized its structure. Section 7 of RA 8494 granted the Board of Directors exclusive and final authority to appoint, promote, transfer, assign, and reassign personnel, while Section 8 addressed the transition period for incumbent personnel. The Board of Directors was composed of nine members under Section 10 of PD 1080, as amended: five ex officio government officials (the Secretary of Finance as Chairman, the Secretary of Trade and Industry, the Governor of the Bangko Sentral ng Pilipinas, the Director-General of NED…

A reorganization undertaken by the Board of Directors of a government-owned and controlled corporation is valid when expressly authorized by the corporation's charter, and the doctrine of qualified political agency does not extend to the acts of such Board even when Cabinet secretaries sit as ex officio members, because they sit by operation of law rather than by direct presidential appointment.

Judge Rio C. Achas, Presiding Judge of the Municipal Trial Court in Cities, Branch 2, Ozamiz City, had been separated de facto from his legal wife for 26 years and was publicly known to occasionally go out with a young woman who was not his wife. He also reared fighting cocks for leisure and extra income, having inherited the practice from his forefathers. Seven years prior, he had faced similar administrative charges in A.M. No. MTJ-04-1564, where he was fined for gross misconduct regarding a cash bond but was acquitted of immorality charges for lack of evidence.

A judge must ensure that their conduct is not only above reproach but is also perceived to be so by a reasonable observer; being publicly perceived as going out with a woman not one's wife while still legally married constitutes a violation of the New Code of Judicial Conduct regarding integrity and propriety, regardless of whether sexual relations or cohabitation is proven.

Lilia V. Domingo was the registered owner of a 658-square-meter vacant lot situated in White Plains, Quezon City, covered by Transfer Certificate of Title (TCT) No. N-165606. In July 1997, Radelia Sy perpetrated a fraud by obtaining a reissued duplicate owner's copy of Domingo's title through a petition supported by a fabricated affidavit of loss and a forged deed of sale purportedly executed by Domingo. Sy subsequently sold the property to Spouses Alfonso and Maria Angeles Cusi and Spouses Edgardo and Ramona Liza De Vera for grossly undervalued prices, resulting in the issuance of new titles in their names while Domingo remained in possession of the original title and was unaware of the tr…

A transferee who acquires property covered by a reissued owner's copy of a certificate of title without taking the ordinary precautions of honest persons by examining the records of the proper Registry of Deeds, or who fails to pay the full market value of the property, is not considered an innocent purchaser for value and cannot defeat the rights of the registered owner who retained possession of the original title.

Contiquincybunge Export Company shipped U.S. Soybean Meal in bulk to Simon Enterprises, Inc. from Louisiana to Manila. The shipment was discharged to the receiving barges of Asian Terminals, Inc. (ATI), the arrastre operator. Respondent claimed a shortage of 199.863 metric tons out of the manifested 3,300 metric tons and sued ATI and the carrier for damages.

An arrastre operator cannot be held liable for cargo shortage where the consignee fails to prove the actual weight of the shipment at the port of origin, particularly when the bill of lading contains a "shipper's weight, quantity and quality unknown" clause, and the alleged shortage falls within allowable variance due to the inherent nature of the goods.

In 1978, Macario Carpio demanded that Spouses Oria vacate a 137.45-square-meter portion of his property they allegedly occupied and pay monthly rent. Upon their refusal, an unlawful detainer action was filed before the Metropolitan Trial Court (MeTC), which dismissed the case for lack of jurisdiction. The Regional Trial Court (RTC) affirmed the dismissal on appeal, but the Court of Appeals (CA) directed the RTC to try the case as an accion publiciana. On remand, the RTC ruled in favor of Carpio, ordering the spouses to vacate and pay rentals and attorney's fees. The RTC subsequently issued an Omnibus Order denying the spouses' motion for reconsideration and granting Carpio's motion for im…

A void writ of execution produces no legal effect, and all actions taken pursuant to it are deemed not to have taken place; consequently, the satisfaction of a void writ does not render a pending appeal moot and academic.

Petitioner owned a sari-sari store along Arellano Street in Manila. The victim, Virgilio Mendol, was a tricycle driver whose route passed the store. At approximately 2:00 a.m. on August 1, 1999, a brawl ensued at the corner of Estrada and Arellano Streets. Mendol was about to ride his tricycle when petitioner, standing 30 meters away in front of his store, shot him four times, hitting him once in the upper right chest. Mendol survived because of timely medical attention.

A defense of alibi, even when corroborated, cannot prevail over the categorical and positive identification of the accused by credible witnesses, especially when physical impossibility to be at the crime scene is not established.

Purence Realty Corporation and Roberto Bassig owned and developed Don Jose Zavalla Subdivision. Several lot buyers filed a complaint for specific performance before the Housing and Land Use Regulatory Board (HLURB). The HLURB decided in favor of the buyers, ordering the owner and developer to accept payments under the old purchase price and to deliver deeds of sale and transfer certificates of title. That decision became final and executory after no appeal was taken, and a writ of execution issued. Atty. Angelito Villarin subsequently entered his special appearance for Purence Realty and sought to nullify the HLURB decision on jurisdictional grounds. When the HLURB did not act on his motion…

A lawyer who, in a demand letter, presents a statement he knows to be false—specifically, describing a party recognized by a final judgment as a lawful lot buyer as an “illegal occupant”—violates Rule 19.01 of the Code of Professional Responsibility requiring that lawyers employ only fair and honest means to attain lawful objectives, even if the issuance of the demand letters was otherwise motivated by a legally plausible theory that the prior judgment was void.

On October 10, 2002, a check for ₱1,000,000.00 payable to “Mateo Mgt. Group International” and post-dated “Oct. 9, 2003” was presented for deposit at petitioner Allied Banking Corporation’s Kawit Branch. The check was drawn against an account maintained with respondent Bank of the Philippine Islands’ Bel-Air Branch. Petitioner sent the check for clearing through the Philippine Clearing House Corporation, and respondent cleared it. Petitioner credited the payee’s account, and thereafter the account was closed and all funds withdrawn. When the drawer discovered the debit a month later and complained, respondent credited the amount back to his account. The banks then engaged in a “ping-pong” e…

A collecting bank’s acceptance of a post-dated check for deposit constitutes contributory negligence, and even when the drawee bank’s subsequent failure to return the check within the clearing reglementary period is the proximate cause of the loss under the doctrine of last clear chance, the loss must be apportioned between the two banks according to their respective degrees of negligence, the drawee bearing the larger share due to its greater opportunity to prevent the injury.

In the early morning of 8 July 2005, three men – George Reyes, Glen Alvarico, and accused-appellant John Alvin Pondivida – armed with an armalite rifle, went to the house of Gener Bondoc in Obando, Bulacan. They were looking for Gener’s brothers, "Udoy" and "Bagsik," with whom they had a prior altercation involving a gasoline station employee. The men forced entry, chased Gener inside the house, and shot him to death. Pondivida was later arrested; his two co-accused remained at large.

**Conspiracy may be inferred from the mode, method, and manner in which the offense was perpetrated, and the acts of the accused showing a joint purpose and design, even without proof of a prior agreement; a co-conspirator need not participate in every detail of the execution, and once conspiracy is established, the act of one is the act of all. Positive identification of the accused may be established through trustworthy circumstantial evidence showing that the accused was the person last seen with the victim immediately before and after the crime, which, together with other pieces of evidence, forms an unbroken chain that leads to the conclusion that the accused is the author of the crime…

PPHI owned and operated the Westin Philippine Plaza Hotel. It periodically engaged independent auditors to assess employee performance. On August 28, 2004, Sycip, Gorres and Velayo auditors dined at the Hotel’s Café Plaza, were billed P2,306.65, and paid P2,400.00. The transaction gave rise to a discount discrepancy that eventually led to the termination of respondent Ma. Flora M. Episcope, a service attendant who handled the payment.

A rank-and-file employee who regularly handles company funds in the normal exercise of duties, such as a service attendant tasked with receiving guest payments and transmitting them to the cashier, occupies a fiduciary position of trust and confidence. Dismissal on the ground of loss of trust and confidence requires only substantial evidence of a willful breach; proof beyond reasonable doubt is not required, and the employer is given wider latitude of discretion in terminating such employees. An unexplained discrepancy in remitted amounts, combined with the employee’s admission of handling the transaction, may supply the requisite substantial basis for loss of trust.

PLDT and the Gabay ng Unyon sa Telekominaksyon ng mga Superbisor (GUTS), a labor union representing supervisory employees, were parties to successive Collective Bargaining Agreements covering the periods 1999–2001 and 2002–2004. Each CBA provided for across-the-board salary increases for employees within the bargaining unit and established a grievance machinery and procedure for the resolution of disputes arising from the interpretation or implementation of the CBA. The grievance procedure culminated in a Board of Arbitrators whose decision was to be final and binding on both the company and the union. Octavio was hired by PLDT on October 1, 2000 as a probationary Sales System Analyst I a…

A resolution issued by a Union-Management Grievance Committee pursuant to the grievance machinery established in a CBA is binding on the employees when they fail to exhaust the remaining steps of the agreed procedure — particularly elevation to voluntary arbitration — before resorting to labor tribunals or courts, the principle of exhaustion of administrative remedies requiring strict observance of the grievance process agreed upon by the parties.

Respondent-spouses Eugenio and Angelina Fajardo entered into a contract to sell with petitioner Gotesco Properties, Inc. (GPI), a subdivision developer, for the purchase of a 100-square meter lot in Evergreen Executive Village, a subdivision project in Caloocan City. The lot formed part of a larger property covered by TCT No. 244220 (the mother title), which GPI acquired in 1992 but which bore no technical description. The transaction is governed by Presidential Decree No. 957 (PD 957), the Subdivision and Condominium Buyers' Protective Decree, which imposes on subdivision owners and developers the obligation to deliver title to the buyer upon full payment of the purchase price.

In a contract to sell, the developer's unjustified failure to deliver title and possession after the buyer's full payment constitutes a substantial breach warranting rescission under Article 1191 of the Civil Code, and upon rescission, the buyer is entitled to recover the prevailing market value of the property — not merely the purchase price — to prevent unjust enrichment. Corporate officers, however, cannot be held personally or solidarily liable for the corporation's obligations absent a showing of malice or bad faith.

Simon A. Flores was the Barangay Chairman of San Roque, Alaminos, Laguna, and Jesus Avenido was his cousin. Flores was charged with homicide before the Sandiganbayan as a public officer, in relation to his office. The case required assessment of a claim of self-defense under Article 11 of the Revised Penal Code.

A claim of self-defense requires proof of unlawful aggression, reasonable necessity of the means employed, and lack of sufficient provocation; once unlawful aggression ceases, continued shooting is retaliation, not self-defense. A motion for reconsideration without a notice of hearing is pro forma and does not toll the reglementary period to appeal. The accused who admits killing but pleads self-defense bears the burden to prove the defense by clear, satisfactory, and convincing evidence.

Svetlana P. Jalosjos filed a Certificate of Candidacy for mayor of Baliangao, Misamis Occidental, indicating Barangay Tugas as her place of birth and residence. Private respondents sought to deny due course to or cancel her CoC, alleging she was born in San Juan, Metro Manila, and had not abandoned her domicile of origin in Dapitan City.

A candidate for local elective office must establish by clear and positive proof the concurrence of three requisites to acquire a domicile of choice—bodily presence in the new locality, intention to remain there, and intention to abandon the old domicile—at least one year prior to the elections.

The dispute involves a 338-square-meter parcel of land in Maasin, Southern Leyte, originally owned by spouses Santiago and Sofronia Mercado. Their heirs (petitioners) inherited the property and possessed it as owners. In 1996, respondents claimed ownership, asserting they purchased the land from Josefa Mercado Espina, who allegedly acquired it through a chain of transactions dating back to 1937 involving Genivera Mercado Kavanaugh and Escolastico Mercado. In 1962, Josefa obtained Original Certificate of Title No. 35 over the property. Petitioners alleged that the prior sales were fraudulent and that Josefa obtained the title through fraudulent machinations, prompting them to file suit for r…

A complaint for recovery of ownership and possession of land fails to state a cause of action against purchasers where it does not allege that the purchasers were buyers in bad faith or had notice of the defect in the title of their vendors; under the Torrens system, purchasers are presumed innocent and for value in the absence of allegations to the contrary, and the defrauded owner's remedy lies against the parties to the fraud, not against innocent holders for value protected under Section 53 of Presidential Decree No. 1529.

Shortly after adjournment of the House of Representatives session on November 13, 2007, an improvised bomb planted on a motorcycle exploded at the entrance of the South Wing lobby of the Batasan Complex in Quezon City. Congressman Wahab Akbar and five others were killed; several others, including two members of Congress, sustained serious injuries. Police investigation traced the motorcycle to Ikram Indama, a former driver of petitioner Gerry A. Salapuddin. Raids on an alleged Abu Sayyaf safehouse led to the deaths of three individuals and the arrest of Caidar Aunal, Ikram Indama, and Adham Kusain. During custodial investigation, Ikram executed multiple affidavits, the fourth of which claim…

Probable cause to indict a person for conspiracy must rest on competent and consistent evidence of an overt act in furtherance of the common design; an extrajudicial confession of a co-accused is inadmissible against the accused under the res inter alios acta rule unless the conspiracy is first established by evidence other than the confession, and mere association, relationship, or ownership of the premises used in the crime does not, without more, constitute an overt act. The determination of probable cause by the Secretary of Justice is not subject to judicial reversal absent a clear showing of grave abuse of discretion amounting to lack or excess of jurisdiction.

The case is governed by the Revised Penal Code’s provisions on criminal participation, particularly Articles 8, 17, and 18, which define conspiracy, principals, and accomplices. The petitioners are the People of the Philippines and Miriam Ruth T. Magsino; the respondents are PO1 Ricardo P. Eusebio, SP02 Romeo Isidro, and Jojit George Contreras.

Where the trial court’s final finding is that the accused are mere accomplices rather than conspirators, they cannot be meted the same penalty as the principal; any doubt as to whether a guilty participant in a homicide acted as principal or accomplice is resolved in favor of the milder form of responsibility.

During the 2013 national election period, the Diocese of Bacolod, as part of its advocacy against the Reproductive Health (RH) Law, posted two tarpaulins on the walls of the San Sebastian Cathedral. One tarpaulin stated "IBASURA RH Law," and the other, the subject of the case, listed candidates under "Team Buhay" (those who voted against the RH Law) and "Team Patay" (those who voted for it). The COMELEC ordered its removal for being oversized under election regulations.

COMELEC has no authority to regulate the content or size of expressions made by private citizens who are not candidates, as such expressions constitute protected political speech. The size limitation under the Fair Election Act and COMELEC resolutions applies only to election propaganda of candidates and political parties.

On May 3, 1994, during the annual fiesta of Barangay Talabaan, Mamburao, Occidental Mindoro, Ruben Bernardo was killed following an altercation at a public dance around midnight. The incident stemmed from a confrontation between Ruben Bernardo, who was reportedly drunk and brandishing a knife, and Reynante Tadeja, who was waiting for his children and sisters inside the dance hall. The killing resulted in the filing of homicide charges against Reynante and his brothers Ricky, Ricardo, and Ferdinand, together with their cousin Plaridel Tadeja, based on eyewitness testimonies of the victim's relatives who claimed they saw the accused jointly attack and hack Ruben to death.

A motion for new trial based on newly discovered evidence cannot be granted after the judgment of conviction has become final and executory; furthermore, an extrajudicial confession by a co-accused who participated in the trial but absconded thereafter does not qualify as newly discovered evidence as it could have been discovered earlier with reasonable diligence and is inconsistent with the accused's own testimony.

Congress enacted R.A. No. 9334, imposing excise taxes on alcohol and tobacco products imported into freeports such as the Subic Special Economic and Freeport Zone (SSEFZ), effectively withdrawing the tax exemptions previously enjoyed by importers registered under R.A. No. 7227. The Subic Bay Metropolitan Authority (SBMA) issued a memorandum directing importers to pay the applicable duties and taxes. Importers and traders operating within the SSEFZ subsequently filed a petition for declaratory relief before the Regional Trial Court to nullify the implementation of Section 6 of R.A. No. 9334.

A motion for intervention that lacks the mandatory requirements of notice and hearing, as well as proof of service, is a mere scrap of paper that cannot be acted upon by the court, and its admission despite the absence of prior notice to the adverse party constitutes grave abuse of discretion violative of due process.

Radio Marine Network Inc. (RMSI), doing business as Smartnet Philippines, applied for an Omnibus Credit Line with Asia United Bank (AUB) in 1999, representing its ₱400-million capitalization and congressional telecom franchise. RMSI officers subsequently submitted documents treating Smartnet Philippines, Inc. (SPI) as a division of RMSI to secure an Irrevocable Letter of Credit. Unbeknownst to AUB, SPI was a separate subsidiary with only ₱62,500 in paid-up capital. Upon AUB's demand for payment, RMSI denied liability, invoking SPI's separate juridical personality.

Syndicated estafa under Presidential Decree No. 1689 does not apply when the commercial bank is the victim defrauded by outsider clients; the decree requires that the swindling be committed through the association soliciting public funds, or that the offenders be insiders who used the association to perpetrate the crime.

The Philippine Drug Enforcement Agency (PDEA) in Iligan City had received frequent complaints from residents of Purok San Antonio that Arnold Tapere was selling shabu in the area. He was included in the PDEA’s drug watch list, and a neighbor, SPO2 Diosdado Cabahug, had warned him to stop. An informant, Gabriel Salgado, reported Tapere’s continuing drug pushing activities. To verify the report, PDEA agents conducted surveillance and a test buy on August 30, 31, and September 1, 2002, which confirmed Tapere’s involvement. A buy-bust operation was then planned for September 2, 2002. A ₱100.00 bill was certified by the Office of the City Prosecutor as the buy-bust money. Salgado acted as the …

In a prosecution for illegal sale of dangerous drugs, a buy-bust operation constitutes valid entrapment — not absolutory instigation — when the accused’s criminal intent originates from his own mind and the police merely furnished an opportunity to commit the offense he was already predisposed to commit.

The DOH, through successive administrative orders, established an accreditation system for pharmaceutical suppliers to the government. PPI, an accredited supplier, was found by the Bureau of Food and Drugs (BFAD) to be distributing substandard and violative drug products. Following a directive to explain the adverse findings, PPI failed to file a timely substantive response. The DOH Undersecretary suspended PPI’s accreditation for two years. PPI responded with a complaint for damages and nullification of the DOH orders, asserting that the suspension was imposed without the notice and hearing required under Section 26(d) of RA 3720 as amended by EO 175, and that the officials acted beyond th…

An unincorporated government agency performing governmental or sovereign functions is immune from suit without its consent, and a complaint that seeks to impose a financial charge against the State must be dismissed. Public officials sued for acts performed in the discharge of official duties share this immunity unless they are shown to have acted ultra vires or with bad faith, and the judgment would require the State to take an affirmative act such as appropriating funds to satisfy an award of damages.

The Philippines hosted the 12th ASEAN Leaders Summit in Cebu, initially scheduled for December 2006 and later moved to January 2007 due to a typhoon. The Department of Public Works and Highways (DPWH) undertook infrastructure projects, including the installation of street lighting systems along ceremonial routes and the perimeter of the Cebu International Convention Center. FABMIK Construction and Equipment Supply Company, Inc. (FABMIK) was awarded four street lighting contracts, among them Contract I.D. No. 06H00050 for the supply and installation of lighting facilities along the Mandaue-Mactan Bridge 1 to Punta Engaño section in Lapu-Lapu City, with an estimated cost of ₱83,950,000.00. Th…

A conditional arraignment that unmistakably, expressly, and intelligently waives the constitutional protection against double jeopardy upon subsequent amendment or substitution of the information bars the accused from later invoking double jeopardy, provided the fresh charge is for a different offense whose elements are not inclusive of those in the original charge. Additionally, violation of Section 3(e) of Republic Act No. 3019 may be committed by giving any private party unwarranted benefits, advantage, or preference without proof of actual injury to the government; private persons conspiring with public officers may be indicted and held liable under the same provision.

President Gloria Macapagal-Arroyo designated Alberto C. Agra as Acting Solicitor General on January 12, 2010, following the appointment of Solicitor General Devanadera as Secretary of Justice. On March 5, 2010, President Arroyo further designated Agra as Acting Secretary of Justice vice Secretary Devanadera, who had resigned to run for Congress. Agra relinquished his prior position as Government Corporate Counsel but continued serving in both acting capacities. Petitioner Dennis A.B. Funa, in his capacity as a taxpayer, concerned citizen, and lawyer, challenged the concurrent designations on April 7, 2010. During the pendency of the suit, Jose Anselmo I. Cadiz was appointed and assumed the …

A member of the Cabinet designated in an acting or temporary capacity to hold another office is prohibited from doing so under Section 13, Article VII of the 1987 Constitution, as the provision makes no distinction between permanent and temporary appointments; the exception applies only when expressly provided by the Constitution or when the other office is held in an ex officio capacity.

Atty. Magtanggol B. Gatdula filed a petition for the issuance of a writ of amparo against Justice Secretary Leila M. De Lima, NBI Director Nonnatus R. Rojas, and NBI Deputy Director Reynaldo O. Esmeralda. Gatdula alleged that the respondents were framing him for a fake ambush incident by filing bogus charges for frustrated murder, thereby threatening his right to life, liberty, and security. He prayed that the respondents be ordered to cease and desist from the alleged frame-up.

An order granting the issuance of the Writ of Amparo pursuant to Section 6 of the Rule on the Writ of Amparo is an interlocutory order, not a final judgment or final order appealable under Section 19. The final judgment under Section 18 is rendered only after the return is filed and a summary hearing is conducted, and it must contain detailed measures for the protection of the petitioner, calibrated to the specific threats established by substantial evidence. Procedural rules in amparo cases are mandatory and exclusive; a trial court’s wholesale disregard of those rules—by requiring an answer, applying the inapplicable Revised Rules of Summary Procedure, conducting a hearing without a r…

Lepanto Consolidated Mining Company operated mining claims in Mankayan, Benguet, where capatazes supervised rank-and-file miners. The Lepanto Capataz Union sought to represent these capatazes separately from the existing rank-and-file bargaining unit, the Lepanto Employees Union.

A motion for reconsideration is a prerequisite to the filing of a petition for certiorari assailing the decision of the DOLE Secretary, and capatazes are not rank-and-file employees but extensions of management who may form their own union separate and distinct from rank-and-file labor organizations.

On October 31, 1997, petitioner Teodoro A. Reyes and Advanced Foundation Construction Systems Corporation, represented by its Executive Project Director, respondent Ettore Rossi, executed a deed of conditional sale for a Warman Dredging Pump worth ₱10,000,000.00. Reyes paid a ₱3,000,000.00 downpayment and agreed to pay the ₱7,000,000.00 balance through four post-dated checks. In January 1998, Reyes restructured the obligation, replacing the four original checks with nine post-dated checks totaling ₱7,125,000.00 to include monthly interest.

The rescission of a contract of sale does not constitute a prejudicial question warranting the suspension of criminal proceedings for violation of Batas Pambansa Blg. 22, because the offense is consummated upon the issuance and dishonor of a worthless check at a time when the contract is still valid and binding, and the subsequent extinguishment of the underlying obligation does not absolve the accused of criminal responsibility.

Levi Strauss and Company, owner of the trademarks for Levi's jeans (including the arcuate design, two-horse patch, and tab), through its Philippine licensee, received information that Diaz was selling counterfeit jeans. Surveillance and subsequent NBI raids on Diaz's tailoring shops yielded the seizure of jeans bearing marks similar to Levi's. Diaz maintained that he used his own registered "LS Jeans Tailoring" mark, featuring buffaloes instead of horses and an "LSJT" tab, and sold made-to-order jeans to a different market segment.

Likelihood of confusion in trademark infringement cases involving jeans products must be determined using the holistic test, which considers the entirety of the marks, including labels and packaging, rather than just the predominant features.

Spouses Quirino and Gloria Dela Cruz operated an agricultural supply store in Aliaga, Nueva Ecija. On March 23, 1978, Gloria applied for and was granted by Planters Products, Inc. (PPI) a regular credit line of P200,000 for a 60-day term, with trust receipts as collaterals. She and Quirino, then the Municipal Mayor, submitted a list of conjugal assets to support the application. Gloria subsequently signed documents labeled “Trust Receipt/Special Credit Scheme” (TR/SCS) for agricultural inputs received, undertaking to hold the goods in trust for PPI, to sell them to farmer-participants under the Special Credit Scheme, and to assign the farmers’ trust agreements to PPI “with recourse.” Undeli…

A credit line agreement secured by trust receipts creates a direct creditor-debtor relationship, not a trust receipt transaction within the purview of the Trust Receipts Law, where the trust receipts function merely as collaterals; the intention of the parties is determined by their contemporaneous and subsequent acts. An award of attorney’s fees must be founded on express factual and legal justification laid out in the body of the decision.

De Jesus had been employed by Supersonic Services, Inc. since February 1976, serving from 1992 as Sales Promotion Officer soliciting clients and selling plane tickets, including Pakistan International Airlines tickets, on credit. The position was highly confidential and financially sensitive because she was fully authorized to solicit clients and receive payments for and in behalf of the company. Security of tenure under the Labor Code protects such an employee against dismissal except for just or authorized cause and guarantees the twin requirements of substantive ground and procedural due process.

A dismissal for a just or authorized cause is valid and effectual despite the employer's failure to observe statutory due process, subject only to the payment of nominal damages as indemnity for the procedural violation.

International Exchange Bank (iBank) granted Hammer Garments Corporation (Hammer) several loans totaling ₱24,938,898.08, secured by a ₱9 Million Real Estate Mortgage from Goldkey Development Corporation (Goldkey) and a ₱25 Million Surety Agreement from Manuel Chua (Hammer's President) and Fe Tan Uy. Hammer defaulted, prompting iBank to foreclose on Goldkey's mortgage, which yielded ₱12,000,000.00 and left a deficiency of ₱13,420,177.62. iBank subsequently filed a complaint for sum of money against Hammer, Chua, Uy, and Goldkey to recover the deficiency.

A corporate officer or stockholder cannot be held personally liable for corporate obligations absent clear and convincing proof of bad faith or gross negligence in directing corporate affairs, whereas a corporation may be held liable for the debts of another corporation when the former is proven to be a mere alter ego, characterized by common ownership, identity of directors and officers, commingled assets, and identical business operations.

On November 23, 2009, a convoy of vehicles carrying relatives of then Maguindanao vice-mayor Esmael Mangudadatu, lawyers, and journalists was intercepted by approximately 100 armed men in Ampatuan, Maguindanao. The 57 occupants were taken hostage and systematically killed; their bodies and vehicles were buried in mass graves. The incident became known as the Maguindanao Massacre. Criminal cases for murder were subsequently filed, with Datu Andal Ampatuan, Jr. as the principal accused. Petitioner Atty. Philip Sigfrid A. Fortun served as Ampatuan, Jr.'s counsel. In November 2010, Atty. Quinsayas, et al. filed a disbarment complaint against petitioner before the Supreme Court, docketed as Bar …

The confidentiality rule for disbarment proceedings under Section 18, Rule 139-B of the Rules of Court is not an absolute restriction on freedom of the press; where the disbarment complaint involves a matter of legitimate public interest and the subject attorney is a public figure or has become one by involvement in a public issue, media may make a fair, true, and accurate news report of the filing without incurring contempt. However, a lawyer-complainant who actively disseminates the disbarment complaint to the media violates the confidentiality rule and may be held in contempt.

Petitioners were former officers and employees of respondent Gregorio Araneta University Foundation (GAUF), a university foundation that adopted a Reorganization, Retrenchment and Restructuring (RRR) Program in 1984 on the ground of serious business losses and financial reverses. The RRR Program was approved by then Minister of Labor Blas F. Ople, with the reminder that implementation should be without prejudice to whatever benefits may have accrued in favor of the employees concerned. Three prior cases arising from the same RRR Program had already reached the Supreme Court over a span of three decades, in all of which the Court recognized the validity of the program. Petitioners were retre…

Where the employer demonstrates that the amounts actually extended to retrenched employees exceed the separation pay mandated by company policy, the employer has fully complied with its obligation to pay separation benefits, notwithstanding the NLRC's finding that a compromise agreement involving land transfers was not complied with, provided that uncontested receivables such as tuition fees are properly offset against the amount due.

Ramon Martinez y Goco was charged as the accused in a prosecution for possession of dangerous drugs under Section 11(3), Article II of Republic Act No. 9165, while the People of the Philippines was the respondent. The case implicated Section 844 of the Revised Ordinance of the City of Manila, which penalizes breaches of the peace, and the constitutional guarantee against unreasonable searches and seizures under Section 2, Article III of the 1987 Constitution, enforced by the exclusionary rule in Section 3(2).

A warrantless arrest for an alleged breach of the peace under Section 844 of the Manila City Ordinance is invalid absent probable cause that the person’s conduct actually disrupted communal tranquillity; the resulting warrantless search is illegal, and the seized drug is inadmissible as fruit of the poisonous tree.

The cases involve claims for refund or tax credit of unutilized input VAT attributable to zero-rated sales or capital goods purchases. The central controversy revolves around the interpretation of Section 112(D) of the NIRC (renumbered as Section 112(C) by RA 9337), specifically whether the 120-day waiting period for the Commissioner’s decision and the 30-day appeal period are mandatory or merely directory. Prior to this decision, conflicting doctrines existed: Atlas Consolidated Mining (2007) reckoned the 2-year prescriptive period from the date of payment, while Mirant Pagbilao (2008) reckoned it from the close of the taxable quarter. Meanwhile, BIR Ruling No. DA-489-03 (2003) and Rev…

The 120-day period for the Commissioner to decide administrative claims for VAT refund/credit and the 30-day period for taxpayers to appeal to the CTA are mandatory and jurisdictional; however, taxpayers who relied on BIR Ruling No. DA-489-03 (December 10, 2003) are entitled to equitable estoppel under Section 246 of the NIRC, protecting their prematurely filed claims filed between December 10, 2003 and October 6, 2010.

Jasper T. Tan, a stockholder of CHVI, sought to exercise his statutory right to inspect the corporation's books and records to understand its financial condition and management. He alleged that his written requests were ignored for months, and when an inspection was finally allowed, it was severely limited, and his team was prevented from copying documents. This led him to file a criminal complaint against the corporate president and an associate.

The SC affirmed that probable cause exists to charge a corporate officer with a violation of Section 74, in relation to Section 144, of the Corporation Code when a stockholder's prior written demand for inspection is met with an unjustified refusal or limitation, and that courts will not interfere with the executive's determination of probable cause absent a clear showing of grave abuse of discretion.

Joseph Goyanko, Sr. invested P2,000,000 with Philippine Asia Lending Investors, Inc. (PALII). Conflicting claims to the investment arose between his legitimate and illegitimate families. Pending resolution of these claims, PALII deposited the proceeds with UCPB under the name "Phil Asia: ITF (In Trust For) The Heirs of Joseph Goyanko, Sr."

A bank deposit designated as "In Trust For" (ITF) a third party does not automatically create an express trust between the depositor and the bank, and the bank's obligation remains that of a debtor to its depositor-creditor under a simple loan contract.

Bernardo Alcaraz was employed as a laborer and Metro Aide I by the Metro Manila Development Authority (MMDA) in Makati City for nearly 29 years. Sometime in February 2004, he was diagnosed with Pulmonary Tuberculosis (PTB) and Community Acquired Pneumonia (CAP). He was confined at the Ospital ng Makati from May 13 to 19, 2004, with a diagnosis of Acute Diffuse Anterolateral Wall Myocardial Infarction, CAP High Risk, PTB III, and Diabetes Mellitus Type 2. On January 15, 2005, Bernardo was found dead at the basement of the MMDA building. An autopsy concluded that the cause of death was Myocardial Infarction, old and recent.

A cardiovascular disease is compensable under Presidential Decree No. 626 when the nature of the employee's work and the conditions under which they labored precipitated an acute exacerbation of the heart condition, even if non-occupational diseases like diabetes mellitus were concurrent complicating factors.