Digests

On July 23, 1987, the Republic, through the PCGG and OSG, filed Civil Case No. 0014 with the Sandiganbayan to recover ill-gotten wealth allegedly acquired by respondents during the Marcos regime. The case underwent numerous procedural delays, including the inclusion of additional defendants, the filing of answers in 1995, motions for dismissal by defendant corporations resolved in 2002, and a pending certiorari petition (G.R. No. 154560) before the Supreme Court regarding sequestration orders. From 2002 to 2007, the Sandiganbayan repeatedly reset pretrial hearings, finding the case was "not yet ripe for a pretrial conference."

The dismissal of a case under Rule 17, Section 3 of the Rules of Court for failure to prosecute is discretionary, not mandatory; a single instance of absence after two decades of active prosecution does not constitute failure to prosecute warranting dismissal, and the three-day notice requirement for motions under Rule 15, Section 4 refers to receipt by the adverse party, not the court.

Elenita Dinglasan was the registered owner of Lot No. 625 of the Limay Cadastre, covered by Transfer Certificate of Title (TCT) No. T-105602, with an area of 82,972 square meters. Her mother, Lilia Baluyot, borrowed the owner's copy of the title and gave it to Maura Passion, who subdivided the property into several lots under the names of Elenita and her husband Felicisimo Dinglasan. Using falsified deeds of sale bearing forged signatures, Maura sold the subdivided lots to various buyers. One such lot, Lot No. 625-K, was sold to Lorna Ong, who secured TCT No. 134932. In August 1990, Lorna sold Lot No. 625-K to petitioner Editha Padlan for ₱4,000.00, resulting in the issuance of TCT No. 137466 in petitioner's name.

An action involving title to or possession of real property must be filed in the court having jurisdiction over the assessed value of the property as alleged in the complaint, and where the complaint alleges a value below the RTC threshold (₱20,000.00 outside Metro Manila) and fails to state the assessed value, the Municipal Trial Court has exclusive original jurisdiction; consequently, all proceedings in the RTC are null and void for lack of subject matter jurisdiction.

Employees of the Sugar Regulatory Administration, Rodrigo E. Tapay and Anthony J. Rustia, faced administrative and criminal complaints before the Office of the Ombudsman filed by their co-employee Nehimias Divinagracia, Jr. The complaints bore the signature of Atty. Charlie L. Bancolo as counsel for Divinagracia. When confronted, Atty. Bancolo initially denied signing the documents, claiming forgery, but later admitted before the Integrated Bar of the Philippines that his secretary had signed the pleadings with his tolerance due to "minor lapses" and workload.

A lawyer may not delegate the signing of pleadings and legal documents to a non-lawyer, as such act constitutes the unauthorized practice of law in violation of Rule 9.01 of Canon 9 of the Code of Professional Responsibility; the duty to sign is personal to the lawyer and serves as a certification under the Rules of Court that he has read the pleading and that there is good ground to support it.

Richard Gomez filed his Certificate of Candidacy (CoC) for Representative of the Fourth Legislative District of Leyte under the Liberal Party for the May 10, 2010 elections. An opposing candidate, Buenaventura Juntilla, filed a petition before the Commission on Elections (COMELEC) seeking Richard's disqualification and the cancellation of his CoC on the ground that Richard misrepresented his residency, claiming domicile in Ormoc City while actually residing in San Juan City, Metro Manila, thereby failing the constitutional one-year residency requirement.

A candidate whose Certificate of Candidacy (CoC) has been denied due course to and/or cancelled under Section 78 of the Omnibus Election Code (OEC) cannot be validly substituted under Section 77 thereof, as a CoC cancelled for material misrepresentation of qualifications is void ab initio and negates the candidate's status ab initio, whereas disqualification under Section 68 presupposes a valid candidacy that may be continued by a substitute.

On December 25, 2006, PO3 Renato de Leon of the Caloocan City Police was driving his motorcycle along 5th Avenue when he observed accused Nazareno Villareal from approximately 8 to 10 meters away. PO3 de Leon, who had previously arrested Villareal for illegal drug possession under Republic Act No. 6425, claimed he saw Villareal holding and scrutinizing a plastic sachet containing a white crystalline substance. When PO3 de Leon approached, Villareal attempted to flee but was apprehended with the assistance of a tricycle driver. PO3 de Leon confiscated the sachet, which later laboratory examination confirmed to contain 0.03 gram of methylamphetamine hydrochloride (shabu).

A warrantless arrest under Section 5(a) or (b), Rule 113 of the Revised Rules of Criminal Procedure requires the arresting officer's personal knowledge of the actual commission of a crime or facts indicating its recent commission; prior criminal records or reputation cannot substitute for this personal knowledge, and flight alone does not establish probable cause where no overt criminal act was observed.

Goldenway Merchandising Corporation executed a Real Estate Mortgage on November 29, 1985, in favor of Equitable PCI Bank to secure a Two Million Pesos (P2,000,000.00) loan, covering real properties situated in Valenzuela, Bulacan (now Valenzuela City) and duly registered with the Registry of Deeds. The mortgage contract expressly provided that upon default, the bank could foreclose either judicially under the Rules of Court or extrajudicially in accordance with Act No. 3135. When the petitioner failed to settle its loan obligation, the respondent bank extrajudicially foreclosed the mortgage and acquired the properties at public auction, subsequently consolidating title in its name and issuing new certificates of title on March 9, 2001.

Section 47 of R.A. No. 8791, which establishes a shortened redemption period for juridical persons in extrajudicial foreclosure sales (until registration of the certificate of foreclosure sale or three months after foreclosure, whichever is earlier), is constitutional and does not violate the non-impairment clause or equal protection clause; it applies to real estate mortgages executed prior to its effectivity but foreclosed after its effectivity, as the right of redemption is statutory and subject to the State's police power to regulate banking institutions imbued with public interest.

Judge Rosabella M. Tormis assumed office as Presiding Judge of the Municipal Trial Court in Cities (MTCC), Branch 4, Cebu City on June 22, 1999. Between 2005 and 2007, she served three suspensions: six months for abuse of authority (A.M. No. MTJ-05-1609), preventive suspension for irregularities in marriage solemnization (A.M. No. 07-1691), and six months for dishonesty and grave misconduct (A.M. No. MTJ-07-1692). During these suspensions, Judge Carlos C. Fernando served as Acting Presiding Judge. Mr. Reynaldo S. Teves served as Branch Clerk of Court throughout this period. In June 2008, the Office of the Court Administrator conducted a judicial audit of the branch's records.

A judge who persistently fails to discharge judicial duties through massive case backlogs and procedural violations, despite prior administrative sanctions and warnings, warrants dismissal from the service; similarly, court personnel with repeated infractions demonstrating habitual neglect merit dismissal.

Petitioner Efren S. Almuete and co-accused Johnny Ila and Joel Lloren were charged before the Regional Trial Court (RTC) of Nueva Vizcaya with violating Section 68 of Presidential Decree No. 705 (Revised Forestry Code), as amended by Executive Order No. 277, for possessing timber without legal documents. On the scheduled date of promulgation, the RTC proceeded to promulgate its judgment in absentia on September 8, 1998, finding their absence inexcusable and convicting them.

A judgment of conviction affirmed or modified by the Supreme Court or Court of Appeals need not be re-promulgated by the trial court, which must instead forthwith issue a commitment order or order the bondsman to surrender the accused pursuant to Administrative Circular No. 16-93; furthermore, a final judgment of conviction may be modified to correct a penalty that is void for being outside the range prescribed by law, as such a penalty is a nullity that cannot become final and executory, and the Court may suspend its rules to prevent a miscarriage of justice.

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 (SEC) exclusive jurisdiction. The Court of Appeals eventually nullified the writ and dismissed the complaint for lack of jurisdiction, remanding the case solely for the determination of damages arising from the wrongful attachment.

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.

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-AWATU viewed these actions as designed to reduce regular employees and replace them with contractual workers ineligible for union membership, prompting the filing of notices of strike alleging unfair labor practices.

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.

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.

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 transactions until discovering construction activities on her property in July 1999.

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 immediate execution pending appeal.

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.

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 recovery and nullification of titles.

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.

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.

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 office of Solicitor General on August 5, 2010.

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.

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.

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.

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.

Petitioner Don Djowel Sales y Abalahin was apprehended on May 24, 2003, at the Manila Domestic Airport pre-departure area while preparing to board a flight to Kalibo, Aklan. During a routine frisking by a non-uniformed PNP personnel, a slightly bulging item was felt inside petitioner's right pocket. Petitioner initially refused to open his hands after taking the item out, prompting the frisker to call a supervisor. Upon instruction, petitioner revealed two rolled paper sticks containing dried marijuana fruiting tops, leading to his immediate arrest and investigation by airport security and PDEA personnel.

A warrantless search conducted on an airline passenger at an airport pre-departure area is valid pursuant to routine security procedures, even absent a prior metal detector alarm, provided the frisker develops reasonable suspicion based on feeling a bulging item and observing the passenger's nervous demeanor; and the non-presentation of every person who handled the seized drugs is not fatal to the prosecution's case as long as the chain of custody remains unbroken and the integrity and evidentiary value of the seized items are preserved.

National Power Corporation (Napocor) instituted expropriation proceedings to acquire an easement of right of way over parcels of land in Balanga City, Bataan, for its 230 KV Limay-Hermosa Transmission Lines Project. The subject property, owned by spouses Rodolfo Zabala and Lilia Baylon, consisted of 6,820 square meters. Napocor alleged that negotiations for the easement failed and that the land was classified as riceland devoted to palay cultivation. The spouses contested the taking, asserting that the property was being developed into a subdivision, that the transmission lines would endanger inhabitants and impede urban expansion, and that Napocor had not exhausted earnest efforts to purchase the needed portion directly.

Statutory provisions fixing the method or amount of just compensation, such as Section 3A of Republic Act No. 6395 limiting easement compensation to 10% of market value, are not binding on courts and serve merely as guidelines, where the determination of just compensation remains a judicial function that cannot be usurped by legislative or executive branches; furthermore, commissioners' valuation reports in eminent domain proceedings must be supported by documentary evidence (e.g., tax declarations, zonal valuations, sworn realtor declarations) to be admissible, as unsubstantiated reports constitute inadmissible hearsay.

Republic Act No. 8439, the Magna Carta for Scientists, Engineers, Researchers, and other Science and Technology Personnel in the Government, enacted on December 22, 1997, grants additional allowances and benefits to covered Department of Science and Technology personnel, including honorarium, hazard allowance, subsistence allowance, laundry allowance, and medical examination. Section 20 of the Act mandates that the amount necessary for its implementation shall be provided in the General Appropriations Act of the year following its enactment. Despite the absence of specific appropriations for these benefits in the GAAs for 1998-2001, the DOST released the benefits to its personnel from agency savings, prompting post-audit disallowances by the Commission on Audit.

Payment of statutory benefits from government savings without a specific item or provision in the General Appropriations Act and without proper authorization under Article VI, Section 25(5) of the Constitution constitutes an unconstitutional disbursement of public funds subject to disallowance by the Commission on Audit; however, recipients who accepted disallowed benefits in good faith, without knowledge of the legal infirmity and under an honest belief in their entitlement thereto, are not required to refund the amounts received.

In August 1981, Fausto C. Ignacio mortgaged two parcels of land in Cabuyao, Laguna covering 203,413 square meters to Home Savings Bank and Trust Company (predecessor of respondent Home Bankers Savings and Trust Company) to secure a ₱500,000.00 loan. Following default, the bank foreclosed the mortgage and emerged as highest bidder at the January 26, 1983 foreclosure sale for ₱764,984.67. The Certificate of Sale was registered on February 8, 1983, and upon expiration of the redemption period, title was consolidated in the bank's name and new TCTs were issued. Despite the lapse of the redemption period, Ignacio negotiated with the bank to repurchase the properties, claiming that a verbal compromise agreement was reached allowing him to pay ₱900,000.00 in installments and to sell portions of the subdivided land to third parties to fund the repurchase.

A contract of sale is perfected only upon the meeting of the minds with absolute acceptance of the offer; a qualified acceptance that modifies the price or payment terms constitutes a counter-offer that requires acceptance by the offeror to perfect a contract, and in the case of a banking corporation, such acceptance must be made by the Board of Directors or by a corporate agent duly authorized by the board, not merely by verbal assent of individual officers or employees.

Juanita Ermitaño owned a residential lot and house in Davao City which she leased to Lailanie Paglas in November 1999. Prior to the lease, Ermitaño had mortgaged the property to Charlie Yap, and the mortgage was foreclosed extrajudicially in February 2000 with Yap as purchaser. In June 2000, Paglas purchased the property from Yap, subject to Ermitaño's right of redemption. Ermitaño had earlier filed a suit to nullify the mortgage and foreclosure. When Paglas stopped paying rent and refused to vacate, Ermitaño filed an unlawful detainer case.

In an unlawful detainer case, a purchaser at a foreclosure sale acquires the right to possession only upon the expiration of the redemption period; during the redemption period, the mortgagor-lessor retains the right to possession and to receive rents unless the purchaser files a bond pursuant to Section 7 of Act No. 3135. The conclusive presumption of estoppel against tenants under Section 2(b), Rule 131 of the Rules of Court applies only to the landlord's title at the commencement of the tenancy, not to title acquired subsequently by the tenant.

Respondent Edmundo L. Macarubbo was disbarred by the Supreme Court on February 27, 2004 for contracting bigamous marriages with complainant Florence Teves and Josephine Constantino while his first marriage to Helen Esparza was still subsisting, constituting gross immoral conduct in violation of the Code of Professional Responsibility. Eight years following the finality of his disbarment, he filed a Petition for Extraordinary Mercy seeking judicial clemency and reinstatement, supported by certifications from the Integrated Bar of the Philippines, local government officials, and community members attesting to his reformed character.

Reinstatement to the Roll of Attorneys after disbarment requires the petitioner to satisfy the five guidelines for judicial clemency: (1) proof of remorse and reformation; (2) sufficient time lapsed from the imposition of penalty; (3) age showing productive years ahead; (4) showing of promise and potential for public service; and (5) other relevant justifying circumstances. Additionally, the applicant must demonstrate good moral character equivalent to that required of new bar candidates.

Petitioner Mondragon Personal Sales, Inc., engaged in the sale of consumer products through sales representatives, contracted respondent Victoriano S. Sola, Jr. as a service contractor to provide bodega and office facilities in General Santos City. Prior to this arrangement, respondent's wife, Lina Sola, maintained a franchise distributorship with petitioner that generated an unpaid obligation. On January 26, 1995, respondent executed a letter addressed to petitioner's Vice-President for Finance acknowledging his wife's indebtedness of ₱1,973,154.73 and undertaking to pay the same on installment basis. Petitioner subsequently withheld respondent's service fees for February to April 1995, applying them as partial payment toward this assumed debt. On April 29, 1995, respondent closed and padlocked the bodega, ceasing operations.

Legal compensation operates by operation of law to extinguish mutual obligations to the concurrent amount when both parties are reciprocally principal debtors and creditors of each other, provided the five requisites under Article 1279 of the Civil Code concur: (1) each obligor is bound principally and is at the same time a principal creditor of the other; (2) both debts consist in a sum of money or consumables of the same kind and quality; (3) both debts are due; (4) both are liquidated and demandable; and (5) neither debt is subject to retention or controversy commenced by third persons.

Lots X, Y-1, and Y-2 (totaling 52,678 square meters) located in Barrio Dadiangas, General Santos City, were originally alienable and disposable public land. In 1963, President Macapagal issued Proclamation No. 168 withdrawing these lots from sale or settlement and reserving them for recreational and health purposes (Magsaysay Park), subject to private rights. The Heirs of Cabalo Kusop, claiming their predecessor had possessed the lots since time immemorial, petitioned for exclusion from the reservation. In 1983, President Marcos issued Proclamation No. 2273 excluding Lots Y-1 and Y-2 from the reservation and declaring them open for disposition to qualified applicants (including the Heirs), but expressly retaining Lot X (15,020 square meters) as part of the park reservation.

Certificates of title issued covering inalienable and non-disposable public land, even in the hands of an alleged innocent purchaser for value, should be cancelled; furthermore, an application for miscellaneous sales patents constitutes an express acknowledgment that the land is public land owned by the State, which bars the applicant from subsequently claiming ownership through acquisitive prescription.

Special People, Inc. Foundation proposed a water-resource development and utilization project in Barangay Jimilia-an, Loboc, Bohol, involving the tapping, purifying, and distribution of water from the Loboc River. Seeking exemption from the Environmental Compliance Certificate (ECC) requirement under Presidential Decree No. 1586, the petitioner applied for a Certificate of Non-Coverage (CNC) with the Environmental Management Bureau (EMB) Region 7.

Mandamus will not lie to compel the issuance of a Certificate of Non-Coverage (CNC) because the determination of whether a project or area is environmentally critical involves the exercise of discretion by the EMB Director or Regional Director, and is not a purely ministerial duty.

Sherwood Holdings Corporation, Inc. (SHCI) filed a complaint for sum of money against Absolute Management Corporation (AMC) for undelivered plywood and plyboards paid for via crossed Metrobank checks payable to AMC. AMC's General Manager, Jose L. Chua, received the checks in 1998 but died in 1999; his estate was undergoing judicial settlement in Pasay City. AMC denied receiving the proceeds and filed a third-party complaint against Metrobank, which had deposited the checks into the account of Ayala Lumber and Hardware, a sole proprietorship owned by Chua.

A fourth-party complaint against a decedent's estate asserting a contingent claim for reimbursement based on quasi-contract must be filed as a money claim in the special proceeding for the settlement of the estate under Section 5, Rule 86 of the Rules of Court, rather than as an impleader in an ordinary civil action under Section 11, Rule 6.

Optima Realty Corporation, engaged in the business of leasing commercial spaces, entered into a Contract of Lease with Hertz Phil. Exclusive Cars, Inc. for a 131-square-meter office unit and a parking slot in the Optima Building. The lease period was amended to run from October 1, 2003 to February 28, 2006. During the lease term, Hertz accumulated arrears in rentals and utility bills. The contract required Hertz to give written notice of intent to renew at least 90 days prior to expiration, but Hertz failed to do so within the stipulated period.

A defendant who files a motion seeking affirmative relief, such as leave to file an answer with counterclaim, voluntarily submits to the court's jurisdiction and cures any defect in the service of summons, provided that the objection to jurisdiction is not raised explicitly and unequivocally as a special appearance distinct from the request for affirmative relief.

FQB+7, Inc. was incorporated in 1985 with Francisco Q. Bocobo, Fidel N. Aguirre, and others as directors and stockholders. Following the deaths of Francisco Q. Bocobo and Alfredo Torres, the Bocobo heirs (Nathaniel and Priscila) filed a General Information Sheet (GIS) in 2002 reflecting themselves as president and secretary/treasurer and listing a new board composition. In April 2004, Vitaliano N. Aguirre II discovered this GIS and questioned its validity, alleging that the Bocobos were usurping corporate powers. On September 27, 2004, Nathaniel Bocobo appointed Antonio De Villa as attorney-in-fact to administer the corporate farm in Quezon Province, leading to a confrontation with Fidel Aguirre. Unbeknownst to the parties at the time of filing, the SEC had already revoked FQB+7's certificate of registration on September 29, 2003 for failure to comply with reportorial requirements.

Section 145 of the Corporation Code preserves the nature of intra-corporate disputes and the rights and remedies of corporate actors even after the dissolution of the corporation; consequently, the Regional Trial Court designated as a special commercial court retains jurisdiction over intra-corporate controversies notwithstanding the corporation's dissolution, provided the dispute does not seek to continue the corporate business but rather involves the settlement of corporate affairs such as the determination of the rightful board and vindication of stockholdings.

Abundo was elected Mayor of Viga, Catanduanes for the term 2001-2004. In the May 2004 elections, he ran for reelection but was initially proclaimed the loser to Jose Torres, who assumed office on June 30, 2004. Abundo filed an election protest. On May 9, 2006, the RTC declared Abundo the winner; he assumed office the same day and served until June 30, 2007 (approximately one year and one month). He was subsequently elected for full terms in 2007 and 2010. Following his 2010 proclamation, private respondent Ernesto R. Vega filed a quo warranto petition before the RTC to unseat Abundo, alleging violation of the three-term limit rule under Section 8, Article X of the Constitution and Section 43(b) of the Local Government Code.

Service of a term less than the full three years by a winning protestant in an election protest, who was not proclaimed initially and only assumed office after winning the protest, constitutes an involuntary interruption that breaks the continuity of service for purposes of the three-term limit rule, provided the official did not serve the full term from start to finish and was effectively a private citizen during the period the opponent held the office.

Petitioners invested in the Legacy Group of Companies through a "buy back agreement" that generated check payments subsequently dishonored. After demands for return of investments went unheeded, they filed charges for syndicated estafa against Celso G. Delos Angeles, Jr. and associates in the Office of the City Prosecutor of Davao City on February 6, 2009.

The Secretary of Justice may consolidate preliminary investigations of related criminal cases to a special panel under his direct supervision as a valid exercise of administrative control and supervision over prosecutors, provided the consolidation promotes efficiency and does not result in vexatious, capricious, or oppressive delays, and classifications made therein bear a rational relationship to legitimate government ends.

Pedro Buado, Jr. and his wife CCC lived with their 13 children in Marulas, Valenzuela City. The accused was charged with raping his daughters AAA (born February 13, 1989) and BBB (born October 11, 1990) in April and November 1999, respectively. AAA alleged that her father had sexually abused her multiple times since she was in Grade I, with the last incident occurring on April 13, 1999, when she was 10 years old. BBB alleged that she was raped on November 10, 1999, at age 9. The accused denied the charges, claiming that another son had raped BBB and that his wife had fabricated the charges due to marital discord and his refusal to engage in the drug trade.

In prosecutions for qualified rape under Article 266-B of the Revised Penal Code, both minority and relationship must be alleged and proved in accordance with the strict evidentiary guidelines established in People v. Pruna; the failure to present a certificate of live birth or other authentic documents to prove minority, where the victim is alleged to be below 12 years of age and the prosecution seeks to prove she is less than 18, bars the imposition of the death penalty. Furthermore, the prohibition of the death penalty under Republic Act No. 9346 applies retroactively to the benefit of the accused pursuant to Article 22 of the Revised Penal Code, reducing the penalty to reclusion perpetua without eligibility for parole under Section 3 of the said Act.

On March 2, 1991, respondents obtained a loan of P45,000.00 from petitioner payable in six months, secured by a Real Estate Mortgage over their 202-square meter property in Marulas, Valenzuela covered by Transfer Certificate of Title No. V-12296. When the debt became due, respondents failed to pay despite demand. On September 17, 1999, petitioner filed a Complaint before the Regional Trial Court of Valenzuela praying for payment of the principal amount with 12% per annum interest, damages, attorney's fees, and foreclosure of the mortgage.

A judgment that grants relief exceeding what was prayed for in the complaint and unsupported by evidence violates the defendant's right to due process and is void ab initio; such judgment may be annulled under Rule 47 of the Rules of Court upon a showing that the loss of ordinary remedies was attributable to the gross negligence of counsel, not the party's own neglect.

Petitioner Efren Pana and his wife Melecia were charged with murder. Melecia was convicted and sentenced to reclusion perpetua, while Efren was acquitted. The trial court ordered Melecia to pay civil indemnity, moral damages, temperate damages, and exemplary damages to the heirs of the victims. Upon motion for execution by the heirs, the trial court issued a writ of execution, resulting in the levy of real properties registered in the names of both Efren and Melecia.

The property regime of spouses married under the Civil Code without a prenuptial agreement remains conjugal partnership of gains and does not automatically convert to absolute community of property upon the effectivity of the Family Code, but the conjugal assets may still be levied to satisfy the criminal indemnities of one spouse after the responsibilities under Article 121 of the Family Code are covered, provided the offending spouse has no exclusive property.

RCBC Capital Corporation purchased 67% of Bankard, Inc. shares from Equitable-PCI Bank, Inc. (EPCIB) and individual shareholders under a Share Purchase Agreement (SPA). RCBC subsequently claimed overpayment due to overstated valuations and initiated arbitration with the International Chamber of Commerce-International Court of Arbitration (ICC-ICA). EPCIB refused to pay its equal share of the advance on costs, prompting RCBC to pay the balance to avert suspension of the proceedings. RCBC sought a partial award for reimbursement of EPCIB’s share and the withdrawal of EPCIB’s counterclaims.

An arbitral award may be vacated on the ground of evident partiality when a reasonable person would have to conclude that an arbitrator was partial to one party, such as when the arbitrator furnishes the parties with legal literature that supports one party's position and signals a preconceived course of action.

In August 2002, several members of the Philippine Navy stationed at the Naval Education and Training Command (NETC) in Zambales engaged in a drinking session that culminated at the "Aquarius" videoke bar. A misunderstanding occurred between SN1 Evelio Bacosa and appellant Arturo Punzalan, Jr. regarding a flickering light bulb, prompting the navy personnel to leave the establishment to avoid further trouble. While walking back to camp, the group was struck from behind by a maroon Nissan van driven by Punzalan, resulting in the deaths of SN1 Arnulfo Andal and SN1 Antonio Duclayna, and injuries to SN1 Danilo Cuya, SN1 Evelio Bacosa, and SN1 Erlinger Bundang, while SN1 Cesar Domingo narrowly escaped.

The justifying circumstance of avoidance of greater evil cannot be invoked where the alleged evil sought to be avoided does not actually exist and the accused fails to resort to other practical and less harmful means available to avoid the perceived injury.

Dante La. Jimenez, president of Unlad Shipping & Management Corporation, filed a complaint-affidavit for syndicated and large-scale illegal recruitment against Socrates Antzoulatos, Carmen Alamil, Marceli Gaza, and Markos Avgoustis, incorporators of Tsakos Maritime Services, Inc. (TMSI). The complaint alleged that the respondents falsely represented their stockholdings in TMSI’s articles of incorporation to secure a license from the Philippine Overseas Employment Agency. The City Prosecutor initially recommended filing the information, but later moved to withdraw it. The trial court denied the withdrawal, found probable cause, and issued warrants of arrest. After the presiding judge inhibited, the case was re-raffled to another branch, which granted respondent Alamil's motion for reconsideration, dismissed the case for lack of probable cause, and set aside the warrants. The trial court subsequently expunged the petitioner's motion for reconsideration and notice of appeal for lacking the public prosecutor's conformity and the Solicitor General's authorization, respectively.

A private complainant lacks legal personality to assail the dismissal of a criminal case on behalf of the People of the Philippines when the relief sought pertains to the criminal aspect of the case, such as the existence of probable cause, rather than the protection of a pecuniary interest, as the right to prosecute belongs exclusively to the State represented by the Office of the Solicitor General.

At approximately 2:30 a.m. on April 6, 2002, a group comprising Ricky "Totsie" Marquez, Roy Bernardo, Jomer Magalong, Ryan Benzon, and Marlon Mallari stood in front of the University of the East in Caloocan City. Marquez proposed robbing the nearby Rice-in-a-Box store, to which the group acceded. Marquez handed a lead pipe to Magalong, who, together with Bernardo, used it to destroy the store's padlock and break the door. Mallari was designated as the look-out while Marquez, Benzon, Magalong, and Bernardo entered the premises and took various items—including rice cookers, a blender, food items, and kitchen utensils—totaling approximately P42,000.00 in value. The stolen goods were brought to the house of Benzon's uncle. Mallari confessed his involvement to his brother the following day and subsequently reported the incident to the store owner, Sonia Valderosa, who had only learned of the burglary from the building owner's daughter, as she did not reside in the store.

The uncorroborated testimony of a co-conspirator is sufficient for conviction if given in a straightforward manner and contains details that could not have been the result of deliberate afterthought. Furthermore, a store not used as a dwelling and where the owner resides elsewhere is an uninhabited place under Article 302 of the Revised Penal Code, not an inhabited house under Article 299.