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Coca-Cola Bottlers Philippines, Inc. vs. Iloilo Coca-Cola Plant Employees Labor Union

5th December 2018

AK257420
G.R. No. 195297
Primary Holding

Management has the prerogative to discontinue regular Saturday work based on operational necessity when the Collective Bargaining Agreement explicitly grants it the option to schedule such work, and such discontinuance does not constitute a prohibited diminution of benefits.

Background

Coca-Cola Bottlers Philippines, Inc. (CCBPI) operates a manufacturing plant in Ungka, Pavia, Iloilo, where the respondents, regular route drivers and helpers represented by Iloilo Coca-Cola Plant Employees Labor Union (ICCPELU), were employed. The parties were governed by a Collective Bargaining Agreement (CBA) containing provisions on hours of work (Article 10) and premium pay for Saturdays (Article 11), which included language that management "has the option to schedule work on Saturdays on the basis of operational necessity."

Labor Law — Collective Bargaining Agreement — Management Prerogative on Saturday Work Schedule — Diminution of Benefits

People vs. Malana

5th December 2018

AK949896
G.R. No. 233747 , 844 Phil. 988
Primary Holding

Non-compliance with the witness-presence requirements of Section 21, Article II of RA 9165, left unacknowledged and unjustified by the prosecution, compromises the integrity and evidentiary value of the seized drugs and negates a finding of guilt beyond reasonable doubt, regardless of the weakness of the accused's defense, because the burden of proving compliance with the chain of custody rule — and of justifying any deviation therefrom — always rests on the prosecution and never shifts to the accused.

Background

The case involves a buy-bust operation conducted by the Camalaniugan Police Station in Cagayan against accused-appellant Nila Malana y Sambolledo, who was charged with illegal sale of dangerous drugs under Section 5, Article II of Republic Act No. 9165, the "Comprehensive Dangerous Drugs Act of 2002." Section 21 of the same law prescribes the procedure for the custody and disposition of confiscated dangerous drugs, requiring the apprehending team to immediately inventory and photograph seized items in the presence of the accused, a media representative, a DOJ representative, and an elected public official. The case was governed by the original text of Section 21 prior to its amendment by Re…

Criminal Law — Illegal Sale of Dangerous Drugs under RA 9165 — Chain of Custody — Section 21 Compliance — Absence of Required Witnesses

B.E. San Diego, Inc. v. Bernardo

5th December 2018

AK182638
G.R. No. 233135
Primary Holding

The negligence of counsel binds the client as a general rule, but where such negligence is gross and results in the deprivation of the client's property or due process rights, the client is not bound by it, and procedural rules may be relaxed to afford the party the fullest opportunity to establish the merits of its case.

Background

Petitioner B.E. San Diego, Inc. is a corporation that sold a parcel of land on installment to respondent Manuel A.S. Bernardo. The sale was governed by the Maceda Law, which requires a 60-day grace period before cancellation of an installment sale contract. The dispute arose from petitioner's attempt to cancel the agreement after respondent defaulted on the remaining balance, leading to litigation over the propriety of the cancellation and, ultimately, to the procedural question of whether petitioner should suffer the consequences of its collaborating counsel's gross negligence in filing a defective motion for reconsideration.

Civil Procedure — Petition for Relief from Judgment — Gross Negligence of Counsel — Relaxation of Procedural Rules

People v. Sandiganbayan

5th December 2018

AK064129
G.R. Nos. 232197-98
Primary Holding

The dismissal of a criminal case upon the accused's own motion will still bar a subsequent prosecution under the doctrine of double jeopardy when the dismissal is grounded on the violation of the accused's right to speedy disposition of cases.

Background

Respondents Alejandro E. Gamos (former Mayor of Sta. Magdalena, Sorsogon), Rosalyn G. Gile (Municipal Accountant), and Virginia E. Laco (Municipal Treasurer) faced two separate complaints for alleged illegal cash advances made from 2004 to 2007, charging violation of Section 3(e) of Republic Act No. 3019 and Article 217 of the Revised Penal Code. The complaints were filed before the Office of the Ombudsman (OMB) for Luzon by Sangguniang Bayan Members Jocelyn B. Gallanosa and Joselito G. Robillos, based on Commission on Audit (COA) audit observation memoranda and a special audit report. The preliminary investigation spanned multiple years, during which the OMB initially recommended dismissal…

Criminal Law — Right to Speedy Disposition of Cases — Double Jeopardy — Undue Delay in Preliminary Investigation by the Ombudsman

People vs. Ting

5th December 2018

AK040541
G.R. No. 221505
Primary Holding

A judgment of acquittal rendered upon a demurrer to evidence may no longer be reviewed or reversed on appeal, even if the lower court erred in its appreciation of the facts or interpretation of the law, absent a showing that the trial court acted with grave abuse of discretion amounting to lack or excess of jurisdiction or a denial of due process.

Background

Respondents Randolph S. Ting and Salvacion I. Garcia were the City Mayor and City Treasurer of Tuguegarao City in 2004. They were charged under Section 261(w)(b) of the Omnibus Election Code for issuing a treasury warrant during the 45-day election ban period as payment for land to be used as a public cemetery. The prohibition under Section 261(w)(b) penalizes any person who issues, uses, or avails of treasury warrants or similar devices undertaking future delivery of money chargeable against public funds within the prohibited period.

Election Law — Omnibus Election Code — Issuance of Treasury Warrants During Election Ban Period — Double Jeopardy

Degamo vs. Office of the Ombudsman

5th December 2018

AK751493
G.R. No. 212416
Primary Holding

A petition for certiorari against the Office of the Ombudsman's finding of no probable cause will not prosper absent a clear showing of grave abuse of discretion, which exists only where a power is exercised in an arbitrary, capricious, whimsical, or despotic manner by reason of passion or personal hostility so patent and gross as to amount to evasion of positive duty or virtual refusal to perform a duty enjoined by law. The Court will not interfere with the Ombudsman's determination of probable cause, as it is an executive function and the Ombudsman is in a better position to assess the strengths or weaknesses of the evidence.

Background

Petitioner Roel R. Degamo was the Governor of Negros Oriental, and private respondent Mario L. Relampagos was the Undersecretary for Operations of the Department of Budget and Management. The National Disaster Risk Reduction and Management Council requested the release of P961,550,000.00 to the Negros Oriental provincial government to finance the rehabilitation of infrastructures damaged by Typhoon Sendong and a 6.9-magnitude earthquake. The Office of the President approved the request, charging the amount against the Calamity Fund for Fiscal Year 2012. The release of funds was governed by Republic Act No. 10121, the Philippine Disaster Risk Reduction and Management Act of 2010, and the spe…

Criminal Law — Usurpation of Authority or Official Functions — Probable Cause

Fernando vs. Commission on Audit

4th December 2018

AK039310
G.R. No. 237938 , G.R. No. 237944 , G.R. No. 237945 , 844 Phil. 664 , 115 OG No. 45, 12562
Primary Holding

The Executive Committee of the Metro Manila Film Festival is subject to the audit jurisdiction of the Commission on Audit because it is a government instrumentality created under Presidential Proclamation No. 1459 to assist the Metropolitan Manila Development Authority, and its funds—whether sourced from government amusement taxes or private donations—are public funds held in trust for the annual film festival, thereby becoming government property subject to audit upon receipt.

Background

Presidential Proclamation No. 1459 was issued on July 9, 1975, creating the Executive Committee of the Metropolitan Film Festival (later renamed Metro Manila Film Festival) to manage the annual celebration promoting the local movie industry. The Committee was authorized to conduct fundraising campaigns, including receiving donations of amusement tax shares from local governments. Executive Order No. 86-09 was later issued in 1986 organizing the Committee to assist the Metro Manila Commission (later MMDA) in managing the festival, with a Secretariat created within the MMDA to assist the Committee. The Committee's composition includes both government officials and private sector representativ…

Undetermined
Administrative Law — Commission on Audit — Audit Jurisdiction over Metro Manila Film Festival Executive Committee

Peralta vs. Philippine Postal Corporation

4th December 2018

AK510935
G.R. No. 223395 , 844 Phil. 603 , 115 OG No. 45, 12577
Primary Holding

The issuance by a government-owned and controlled corporation (GOCC) of commemorative stamps featuring religious symbols and figures does not per se violate the non-establishment clause or the constitutional prohibition against using public money for religious purposes, provided that: (1) the primary purpose is secular (such as recognizing historical and cultural milestones); (2) public funds are not appropriated solely for the benefit of a particular religion; and (3) any religious benefit derived is merely incidental to the secular purpose.

Background

The Iglesia ni Cristo (INC), a religious organization founded in the Philippines by Felix Y. Manalo in 1914, celebrated its centennial anniversary in 2014. To commemorate this milestone, the Philippine Postal Corporation (PhilPost), a government-owned and controlled corporation, entered into a Memorandum of Agreement with INC to issue special postage stamps. The design featured the image of Felix Y. Manalo identified as the "First Executive Minister," the INC Central Temple, and the centennial logo. The issuance was authorized by then-President Benigno Aquino III through Proclamation No. 815, s. 2014. Petitioner Renato V. Peralta, claiming to be a taxpayer, filed suit alleging that the use …

Undetermined
Constitutional Law — Non-Establishment of Religion — Separation of Church and State — Commemorative Stamps — Taxpayer Standing

Republic vs. Provincial Government of Palawan

4th December 2018

AK659300
G.R. No. 170867 , G.R. No. 185941 , 844 Phil. 453
Primary Holding

The term "territorial jurisdiction" in Section 290 of the Local Government Code and "respective areas" in Section 7, Article X of the 1987 Constitution refer to the land area of a local government unit as defined by its organic law and identified by metes and bounds; they do not include the continental shelf, seabed, or subsoil beyond the municipal waters unless expressly provided by statute.

Background

The Camago-Malampaya Natural Gas Project is a petroleum operation under Service Contract No. 38 entered into by the Republic of the Philippines and a consortium of oil companies. The project is located offshore northwest of Palawan, approximately 80 kilometers from the main island and 48 to 55 kilometers from the nearest points of the province. Following the project's inauguration in 2001, the Province of Palawan asserted a claim to 40% of the National Government's share in the proceeds, arguing that the reservoir was within its territorial jurisdiction under the Local Government Code. The National Government disputed this claim, contending that the reservoir was within the national territo…

Undetermined
Local Government Code — Equitable Share in National Wealth — Territorial Jurisdiction — Continental Shelf

Go vs. Buri

4th December 2018

AK501269
A.C. No. 12296 , 844 Phil. 359
Primary Holding

A lawyer who neglects the legal matter entrusted to her, repeatedly deceives the client about the status of the case, and fails to return unearned fees upon demand commits multiple violations of the Code of Professional Responsibility — warranting suspension from the practice of law for two years and an order to return all money received as legal fees.

Background

In September 2012, complainant Pia Marie B. Go engaged respondent Atty. Grace C. Buri to handle the annulment of her marriage. Complainant paid P150,000.00 in January 2013 as a package engagement fee. Shortly thereafter, respondent informed complainant that a petition had been filed before the Regional Trial Court of Muntinlupa, although no copy was furnished. In February 2013, complainant asked respondent to put the case on hold; respondent replied that she had withdrawn the petition. When complainant decided to proceed in February 2015, respondent requested an additional P38,000.00 for re-filing, which complainant remitted. Despite persistent demands, respondent never provided copies of a…

Legal Ethics — Lawyer's Misconduct — Negligence; Misrepresentation; Failure to Return Client's Funds

Geronimo v. Commission on Audit

4th December 2018

AK596074
G.R. No. 224163
Primary Holding

A contractor who rendered services to the government without a written contract may recover compensation on a quantum meruit basis where the government agency acknowledged the completion of the projects and its liability therefor, and the COA should not deny such a claim outright for insufficiency of documents but should instead require the submission of additional evidence or employ auditing techniques to ascertain the reasonable value of services rendered.

Background

Petitioner Mario M. Geronimo, doing business under the name and style of Kabukiran Garden, is a landscaping contractor who rendered services for the Department of Public Works and Highways (DPWH). The DPWH, through its officials including then Secretary Florante Soriquez, sought Geronimo's services for landscaping and beautification projects along major Metro Manila thoroughfares in connection with the 112th Inter-Parliamentary Union (IPU) Summit in Manila. Government contracts ordinarily require a written contract and a written certification showing availability of funds, but the urgent timeline of the summit led to a verbal commission without formal documentation. The Commission on Audit …

Government Contracts — Quantum Meruit — Money Claim Against Government for Landscaping Projects Without Written Contract

Roque, Jr. vs. Balbin

4th December 2018

AK261460
A.C. No. 7088
Primary Holding

A lawyer who employs harassing and intimidating tactics against opposing counsel — including threatening to file baseless administrative and criminal complaints to strong-arm the latter into submission — violates Canon 8, Canon 19, and Rule 19.01 of the Code of Professional Responsibility, and where the lawyer also repeatedly defies the Court's directives during the administrative proceedings, the penalty of suspension from the practice of law for two years is warranted.

Background

Complainant Atty. Herminio Harry L. Roque, Jr. and respondent Atty. Rizal P. Balbin were opposing counsel in Civil Case No. 2004-307, entitled Felmailem, Inc. vs. Felma Mailem, before the Metropolitan Trial Court of Parañaque City, Branch 77. Complainant represented the plaintiff, while respondent represented the defendant. The disciplinary proceeding arose from respondent's conduct toward complainant after the latter secured a favorable judgment, and from respondent's subsequent disregard of the Supreme Court's directives in the administrative case itself.

Legal Ethics — Code of Professional Responsibility — Harassment of Opposing Counsel — Suspension from Practice of Law

Martires vs. Heirs of Somera

3rd December 2018

AK345902
G.R. No. 210789 , 844 Phil. 291
Primary Holding

Errors and irregularities in the notice for taking a deposition are deemed waived under Section 29(a), Rule 23 of the Rules of Court unless written objection is promptly served upon the party giving the notice; moreover, the admission or rejection of depositions in the course of discovery procedure constitutes an error of law correctable by appeal, not by certiorari.

Background

Avelina S. Somera instituted a complaint for accion reivindicatoria and accion publiciana against Roberto C. Martires before the Regional Trial Court of Quezon City, alleging unlawful transfer of her land located at 71 Narra Street, Project 3, Quezon City. As Avelina and her witnesses resided in the United States, she sought to take their depositions before the Philippine Consulate in New York City to preserve their testimony for use in the pending civil case.

Undetermined
Civil Procedure — Depositions — Notice Requirements under Section 15 and 29 of Rule 23

Orlina vs. Ventura

3rd December 2018

AK177555
G.R. No. 227033
Primary Holding

A judgment rendered in violation of due process is void ab initio and may be attacked directly or collaterally at any time, even after it has become final, and certiorari is available notwithstanding the loss of the remedy of appeal. In an in rem proceeding under the Property Registration Decree for the cancellation of a registered owner's title and issuance of a new one, while jurisdiction over the parties is not a prerequisite to confer jurisdiction on the court, notice to the registered owner is nonetheless required to satisfy due process; absent such notice, all proceedings and the resulting judgment are null and void.

Background

Cynthia Ventura was the registered owner of a 406-square-meter parcel of land in Baesa, Quezon City, covered by Transfer Certificate of Title (TCT) No. 272336 and Tax Declaration No. E-004-01387. From 1998 to 2008, she had been delinquent in the payment of real property taxes, prompting the City Treasurer of Quezon City to subject the property to levy and advertise it for sale at public auction. Reynaldo E. Orlina emerged as the highest bidder at the auction conducted on April 2, 2009, and after the one-year redemption period lapsed without Ventura redeeming the property, the City Treasurer issued a Final Bill of Sale in his favor. The controversy centers on the subsequent judicial proceedi…

Constitutional Law — Due Process — Notice Requirements in Land Registration Proceedings for Approval of Final Bill of Sale

AAA vs. People

28th November 2018

AK706237
844 Phil. 213 , G.R. No. 229762
Primary Holding

Forcibly depriving a wife of the use of conjugal properties through the unilateral removal of essential household items (including sleeping fixtures) against her will, accompanied by verbal abuse and physical violence in the presence of children, constitutes "causing mental or emotional anguish" under Section 5(i) of R.A. No. 9262; lack of intent to cause emotional harm is not a valid defense in this special law; and the mitigating circumstance of passion and obfuscation requires that the act producing the obfuscation be both unlawful and sufficient to produce such a condition of mind, which the wife's mere incurring of debts does not satisfy.

Background

The case arises from a marital dispute where the petitioner, who worked abroad and sent remittances to his wife (private complainant BBB), discovered that she had incurred debts using household appliances as collateral. On February 17, 2010, petitioner reacted by hauling the appliances and furniture to his parents' house, allegedly to protect them from creditors, but did so against his wife's objections and with physical and verbal aggression.

Criminal Law II
VAWC

Ambagan, Jr. vs. People of the Philippines

28th November 2018

AK457150
G.R. No. 233443 , G.R. No. 233444
Primary Holding

A series of criminal acts arising from a single criminal intent and violating the same penal provision, committed at the same time, place, and manner, constitutes a continuous crime (delito continuado) that should be charged in only one Information, and a public officer who orders construction on private property without expropriation proceedings or agreement with the owners, despite being personally informed of their objection, is liable for causing undue injury through evident bad faith under Section 3(e) of R.A. No. 3019.

Background

The petitioner, Albert G. Ambagan, Jr., served as Municipal Mayor of Amadeo, Cavite, and earlier as Sangguniang Kabataan Federation Chairman when the Sangguniang Bayan first declared Balite Falls a tourist spot and reserved area in 1998. The municipal government subsequently undertook an eco-tourism development project at Balite Falls. Two adjacent private properties — one owned by the heirs of Simplicio Lumandas (TCT No. T-158087) and the other by Calixto Lumandas (TCT No. T-158086) — were located near the falls. Section 3(e) of R.A. No. 3019 penalizes public officers who cause undue injury to any party or give unwarranted benefits through manifest partiality, evident bad faith, or gro…

Criminal Law — Anti-Graft and Corrupt Practices Act — Section 3(e) — Continuous Crime (Delito Continuado) — Undue Injury

Hilario vs. Miranda and Belloc

28th November 2018

AK753935
G.R. No. 196499
Primary Holding

An illegitimate child’s filiation, once established by a final judgment or existing from birth, entitles the child to inherit; a mere unsubstantiated claim of a better status does not shift the burden to the illegitimate child to prove filiation, and a final judgment on filiation in a prior case constitutes res judicata. A party who alleges an affirmative fact must prove it; bare allegations do not suffice.

Background

Antonio Belloc and Dolores Retiza died intestate, leaving real properties in Sibonga, Cebu. Magdalena Varian claimed status as Antonio’s illegitimate daughter and Dolores’ half-sister; Irenea Belloc claimed to be Antonio’s niece and Dolores’ first cousin. In Civil Case No. AV-929, Magdalena sued Thelma Varian-Miranda and Santiago Miranda to nullify five deeds of sale over Dolores’ properties; the RTC declared the properties part of the intestate estates of Antonio and Dolores and recognized Magdalena as Antonio’s illegitimate child, and that Decision became final on May 12, 2001. The Family Code and Civil Code provisions on filiation, intestate succession, and res judicata supply the statut…

Civil Law — Succession — Illegitimate Filiation — Res Judicata

Villanueva vs. Reodique

27th November 2018

AK987344
G.R. No. 221647 , G.R. No. 222003
Primary Holding

For a second offense of conduct prejudicial to the best interest of the service, dismissal from the service is mandatory under Section 22(t), Rule XIV of the Omnibus Rules Implementing Book V of Executive Order No. 292, and administrative tribunals or courts may not mitigate this penalty to suspension regardless of the public officer's length of service, prior commendations, or equitable considerations of harshness.

Background

F/SInsp. Rolando T. Reodique served with the Bureau of Fire Protection and led an organization called Guardians Brotherhood, Inc. Larry Villanueva, husband of complainant Loida S. Villanueva, was a member of this organization until he quit in November 2010. Following this resignation, Reodique harbored resentment against the Villanueva family, referring to Larry as "Vic Morrow" and "Bantay-Bantayan" (derogatory references to a movie character and a neighborhood watch parody), and to Loida as "Vic Morrow's wife" or "Bantay-Bantayan's wife." On 17 January 2011, an altercation occurred wherein Reodique allegedly shouted sexually explicit and defamatory statements at Loida Villanueva while disp…

Undetermined
Administrative Law — Conduct Prejudicial to the Best Interest of the Service — Second Offense — Penalty of Dismissal

Laguna Lake Development Authority vs. Commission on Audit En Banc

27th November 2018

AK815796
G.R. No. 211341
Primary Holding

Fringe benefits and allowances not among the exclusions expressly enumerated in Section 12 of R.A. No. 6758 are deemed integrated into the standardized salary rates of government employees and may be properly disallowed by the COA, notwithstanding the non-publication and consequent ineffectivity of DBM CCC No. 10, because the general rule of integration under the statute itself is self-executing and does not depend on the implementing circular for its operation. Additionally, a government agency whose corporate charter was repealed by Section 16 of R.A. No. 6758 may no longer rely on that charter to justify the grant of additional compensation outside the standardized salary system, and…

Background

Republic Act No. 6758, the Compensation and Position Classification Act of 1989, was enacted to rationalize the compensation of government employees by consolidating allowances and additional compensation into standardized salary rates, subject to enumerated exceptions. Section 12 of the law directed that all allowances, except those specifically excluded, shall be deemed included in the standardized salary rates. The Department of Budget and Management (DBM) issued Corporate Compensation Circular No. 10 (DBM CCC No. 10) on October 2, 1989 to implement R.A. No. 6758, specifying in Paragraph 5.5 certain allowances not integrated into basic salary and in Paragraph 5.6 discontinuing all other …

Administrative Law — Commission on Audit — Disallowance of Fringe Benefits and Allowances under R.A. No. 6758 (Salary Standardization Law) and DBM CCC No. 10

Concorde Condominium, Inc. vs. Philippine National Bank

26th November 2018

AK328098
G.R. No. 228354 , G.R. No. 228359 , 843 Phil. 954
Primary Holding

The HLURB has exclusive jurisdiction over a condominium corporation’s complaint for annulment of mortgage and reconveyance of common areas when the action arises from the developer’s alleged unsound real estate business practices, including the unauthorized segregation and encumbrance of such common areas in violation of the Condominium Act and Presidential Decree No. 957. A mortgagee‑bank claiming good faith must present credible proof of pre‑mortgage due diligence, such as a prior ocular inspection and inquiry into the property’s history; a belated or post‑dated inspection report and failure to verify the property’s origin as part of a condominium project negate good faith.

Background

Pulp and Paper, Inc. (PPI) developed Concorde Condominium, a seven‑storey building on two parcels of land in Makati City. On November 4, 1974, PPI executed a Master Deed with Declaration of Restrictions that enumerated the common areas, which included the two parcels of land, the basement, the deck roof, and all other areas of common use; the uncovered parking area directly at the rear of the building was among the “limited common areas” reserved for unit owners’ parking. The Master Deed obliged PPI to form a condominium corporation to hold title to and manage the common areas. Pursuant to that covenant, Concorde Condominium, Inc. (CCI) was incorporated on January 6, 1975. Despite the proje…

Real Property — Condominium Act — Validity of Mortgage of Common Area — Jurisdiction of HLURB — Mortgagee in Good Faith

Cezar Yatco Real Estate Services, Inc. vs. Bel-Air Village Association, Inc.

21st November 2018

AK878702
G.R. No. 211780 , 843 Phil. 678
Primary Holding

The term of effectivity of restrictive covenants is an integral part of the restrictions themselves and may be validly extended by majority vote of the association members where the deed explicitly empowers the association to amend "particular restrictions or parts thereof"; furthermore, proxies for voting in homeowners' association meetings are valid if they comply with the requirements of Section 58 of the Corporation Code (in writing, signed by the member, filed with the corporate secretary) and the specific formalities prescribed in the association's by-laws, without requiring notarization under Articles 1358 and 1878 of the Civil Code.

Background

Bel-Air Village was developed in the 1950s by Makati Development Corporation, with lot sales subject to Deed Restrictions annotated on Transfer Certificates of Title. These restrictions were initially effective for fifty years from January 15, 1957, to January 15, 2007, and were intended for the sanitation, security, and general welfare of the community. Bel-Air Village Association, Inc. (BAVA) was constituted as a non-stock, non-profit association with automatic membership for all lot owners. As the expiration date approached, BAVA initiated proceedings to amend and extend the Deed Restrictions, leading to a dispute regarding the validity of the extension and the proxies used in the ratifi…

Corporation and Basic Securities Law
Manner of Voting and Proxies

Commissioner of Internal Revenue vs. Ocier

21st November 2018

AK250120
G.R. No. 192023 , 843 Phil. 573 , C.T.A. E.B. No. 491 , C.T.A. Case No. 6831
Primary Holding

A taxpayer's admission of transferring shares of stock, even if characterized as a loan, constitutes a taxable "disposition" under Section 24(C) of the National Internal Revenue Code, giving rise to liability for capital gains tax and documentary stamp tax. Furthermore, a court must consider all relevant and competent evidence on record, including a party's admissions, even if the other party failed to formally offer its evidence.

Background

The Bureau of Internal Revenue (BIR) issued deficiency assessment notices to Jerry Ocier for CGT and DST, totaling over P17.9 million, for the taxable year 1999. The assessments arose from gains allegedly realized from the over-the-counter transfer of 4.9 million shares of Best World Resources Corporation (BW Resources) to Dante Tan. This transfer was linked to a stock manipulation scandal. Ocier protested, claiming the transfer was a stock loan, not a sale.

Undetermined
Taxation — Capital Gains Tax and Documentary Stamp Tax — Formal Offer of Evidence — Disposition of Shares

Heirs of Ciriaco Bayog-Ang vs. Quinones

21st November 2018

AK413113
G.R. No. 205680 , 843 Phil. 626
Primary Holding

Article 1544 of the Civil Code on double sales applies only when the same immovable property is sold to different vendees by a single vendor, and does not cover situations where the second transaction is by succession; consequently, heirs cannot inherit property that their predecessor had already validly sold during his lifetime, and registration by the heirs does not confer ownership or superior rights where the predecessor had already transferred title through a public instrument executed in accordance with Article 1498.

Background

Ciriaco Bayog-Ang owned a parcel of land located at Barrio Sadaan, Municipality of Midsayap, Province of North Cotabato, covered by Original Certificate of Title No. RP-1078 (1596). On February 25, 1964, Bayog-Ang executed a Deed of Absolute Sale in favor of Florence Quinones covering a 10,848 square-meter portion of the land. Quinones took possession of the property and installed a tenant, but failed to register the sale or secure a Transfer Certificate of Title in her name. In 1996, following Bayog-Ang's death, his heirs (Celerino Valle and Primitivo Valle) executed an Extrajudicial Settlement of Estate adjudicating the entire property, including the portion sold to Quinones, to themselve…

Undetermined
Civil Law — Sales — Specific Performance — Double Sales — Article 1544 — Prescription — Laches

Heirs of Roger Jarque vs. Jarque

21st November 2018

AK439425
G.R. No. 196733
Primary Holding

Redemption by a third person of property sold under a pacto de retro does not vest title in the redeemer but merely creates a lien for the amount advanced, where the right of repurchase belongs to the vendor or her successors; moreover, an oral partition of inherited property is enforceable in equity where acts of part performance, such as taking possession in severalty and exercising acts of ownership, are established, notwithstanding the Statute of Frauds.

Background

Laureano Jarque died in 1946 survived by his wife Servanda Hagos and four children: Roger, Lupo, Sergio, and Natalia. Lot No. 2560, an unregistered parcel situated in Boton, Casiguran, Sorsogon, formed part of the conjugal partnership of gains. Following Laureano's death, Roger occupied the property, exercised acts of ownership, and in 1960 mortgaged it to Dominador Grajo, subsequently redeeming it. Upon Servanda's death in 1975, the siblings allegedly executed an oral partition ceding Lot No. 2560 to Roger and other properties to the other heirs. Respondents, heirs of Lupo, claimed that Servanda had sold the property with right of repurchase to Benito Coranes in 1972, and that Dominga (Lup…

Undetermined
Civil Law — Succession — Conjugal Partnership of Gains — Sale with Right to Repurchase — Redemption — Ownership

People vs. Abdula

21st November 2018

AK260793
G.R. No. 212192
Primary Holding

Failure to justify gross procedural lapses in the handling of seized dangerous drugs—specifically the omission to photograph the contraband and the absence of statutorily required witnesses during inventory—breaks the chain of custody and nullifies the presumption of regularity, entitling the accused to acquittal based on reasonable doubt as to the existence and integrity of the corpus delicti.

Background

On October 24, 2007, a confidential informant reported to the Philippine Drug Enforcement Agency (PDEA) that a certain "Mike" was selling illegal drugs in Metro Manila. SPO3 Leo Letrodo formed a buy-bust team, designating IO1 Liwanag Sandaan as poseur-buyer and PO2 Anatomy Gabona as arresting officer. The team prepared boodle money topped with a genuine P500 bill marked with Sandaan's initials. The operation was set at ACE Hardware store on the second floor of SM City Manila.

Undetermined
Criminal Law — Dangerous Drugs — Illegal Sale — Chain of Custody — Section 21 of R.A. No. 9165 — Buy-Bust Operation

Celones vs. Metropolitan Bank and Trust Company

21st November 2018

AK407756
G.R. No. 215691
Primary Holding

A conditional notice of approval for redemption is not novated by a subsequent memorandum of agreement assigning the mortgagee's rights to the third-party financier where the two instruments are compatible and deal with distinct legal transactions—the former with the mortgagor's redemption right and the latter with the assignment of credit—such that the mortgagors remain the redemptioners entitled to the certificate of redemption, while the third-party lender acquires only the rights of the assignor mortgagee and may recover the redemption amount from the mortgagors as a payment made on their behalf.

Background

Spouses Francis N. Celones and Felicisima Celones, together with their company Processing Partners and Packaging Corporation (PPPC), obtained various loans from Metropolitan Bank and Trust Company (Metrobank) secured by mortgages on several properties, accumulating a total obligation of P64,474,058.73. Upon default, Metrobank foreclosed the mortgaged properties and emerged as the winning bidder at the foreclosure sale in July 2007, receiving certificates of sale. Prior to the expiration of the one-year redemption period, Metrobank filed petitions for writs of possession in various courts to take possession of the foreclosed properties. In late 2007, the Spouses Celones offered to redeem the…

Undetermined
Civil Law — Assignment of Credit — Redemption of Foreclosed Properties — Novation

Union School International vs. Dagdag

21st November 2018

AK640160
G.R. No. 234186 , 843 Phil. 858
Primary Holding

Pregnancy out of wedlock, in the absence of any legal impediment to marriage between the employee and the child’s father and without evidence that the sexual relationship was grossly immoral by prevailing public and secular norms, is not a just cause for termination of employment. An employer that forces a pregnant employee to choose between resignation and dismissal on that ground commits constructive illegal dismissal and violates the Labor Code’s prohibition against discrimination based on sex.

Background

Union School International employed Charley Jane Dagdag as a probationary elementary school teacher from July 16, 2012 to May 31, 2013. On November 23, 2012, Dagdag discovered she was eight weeks and five days pregnant; the father of the child had married another woman. She informed School Head Jennifer Mandapat of her condition, after which the school raised the issue of gross immorality under its Faculty and Staff Handbook and the Code of Ethics for Professional Teachers, and discussed Dagdag’s resignation.

Labor Law — Constructive Dismissal — Pregnancy Out of Wedlock as Disgraceful or Immoral Conduct

In re Adoption of Karen Herico Licerio

21st November 2018

AK296122
G.R. No. 208005
Primary Holding

A final and executory judgment may be altered to harmonize it with justice and the facts when supervening events render its execution unjust or impossible, and the court may admit evidence of such new circumstances and grant the appropriate corrective relief.

Background

Spouses Joel H. Borromeo and Carmen H. Licerio, who already had two legitimate minor children, sought to jointly adopt Karen Herico Licerio, the illegitimate minor daughter of Carmen. They filed a verified petition for adoption before the Regional Trial Court of Marikina City.

Civil Law — Adoption — Immutability of Judgment — Exception for Post-Judgment Circumstances Rendering Execution Impossible or Unjust

Gonzales-Saldana vs. Niamatali

21st November 2018

AK742449
G.R. No. 226587
Primary Holding

Judicial admissions contained in a party’s Answer—such as an acknowledgment of receipt of money—are conclusive and remove the admitted fact from controversy, dispensing with the need for documentary evidence; an agent who acts beyond the scope of authority and purchases different properties without the principal’s consent must return the funds received, and compensatory interest at six percent (6%) per annum attaches from the filing of the complaint as damages for breach of obligation, without any need for a written stipulation on interest.

Background

Respondent-spouses Gordon and Amy Niamatali, then residing in the United States, manifested to petitioner Donabelle Gonzales-Saldana—an employee of the Department of Labor and Employment (DOLE)—their desire to acquire real property in Metro Manila. Petitioner informed them that a parcel of land in Las Piñas City would be sold at a public auction conducted by the DOLE Sheriff’s Office. Respondent-spouses asked petitioner to participate in the auction on their behalf and, on January 30, 2002, remitted US$60,000.00 (approximately P3,000,000.00) to petitioner’s bank account for that purpose.

Civil Law — Agency — Implied Agency; Obligations — Recovery of Sum of Money; Damages — Compensatory Interest; Evidence — Judicial Admissions

Brazil vs. STI Education Services Group, Inc.

21st November 2018

AK167585
G.R. No. 233314
Primary Holding

A faculty member who does not possess the minimum academic qualifications prescribed under the 1992 MORPS and/or 2008 MORPHE—specifically, a master's degree relevant to the field of teaching for undergraduate programs—is automatically a part-time faculty member and can never attain permanent, regular, or even probationary employment status, regardless of whether the employer voluntarily granted or treated such faculty as a regular employee. Neither estoppel nor equity can contravene this clear statutory mandate, as the operation of educational institutions involves public interest and the right of students to quality education.

Background

Petitioners Luningning Z. Brazil, Salvacion L. Garcera, and Rita S. De Mesa were faculty members of STI Education Services Group, Inc. (STI), a proprietary higher educational institution operating STI College-Legazpi. The 2008 Manual of Regulations for Private Higher Education (2008 MORPHE), issued by the Commission on Higher Education (CHED), prescribes minimum academic qualifications for full-time faculty in higher education institutions, requiring at least a master's degree relevant to the faculty member's field of teaching for undergraduate programs. Its predecessor, the 1992 Revised Manual of Regulations for Private Schools (1992 MORPS), imposed substantially the same requirement. Unde…

Labor Law — Security of Tenure — Faculty Employment Status of Higher Education Institution Teachers under MORPHE — Illegal Constructive Dismissal

Soriano vs. People of the Philippines

21st November 2018

AK041460
G.R. No. 225010
Primary Holding

A conviction for libel requires that the victim be identifiable; defamatory statements directed at a large class or religious group, without circumstances specifically pointing to a particular member, do not give rise to individual causes of action for group libel. Conversely, where the offended party is specifically named and the defamatory words are clearly malicious, the elements of libel are satisfied notwithstanding the speaker's claim of religious expression.

Background

Eliseo Soriano was the anchorman of the religious radio program "Ang Dating Daan" aired over DZAL, a radio station in Iriga City with considerable coverage in the city and throughout the Bicol Region. The libel charges arose from statements Soriano made on air concerning Wilde Almeda, the evangelist leader of the Jesus Miracle Crusade International Ministry (JMCIM), and the pastors and members of that religious group. The statements were prompted by Almeda's act of laying hands on presidential candidate Jose De Venecia during a prayer rally at Luneta, Manila, shortly before the May 8, 1998 elections, and decreeing that De Venecia would be the next president — a prediction that proved false.

Criminal Law — Libel — Defamatory Imputation Against Religious Leader

Mendoza y Esguerra vs. People

21st November 2018

AK618693
G.R. No. 234196
Primary Holding

A traffic violation does not justify a warrantless arrest, and a search incident thereto is illegal; moreover, to be convicted of illegal possession of firearms, the prosecution must prove animus possidendi or intent to possess, which is absent where the accused had no knowledge of the firearm's existence.

Background

The petitioner was charged before the Regional Trial Court (RTC) of Tanauan, Batangas, Branch 6, with violation of P.D. No. 1866, as amended by R.A. No. 8294, for allegedly possessing a caliber .45 pistol, magazines, and ammunition without the necessary license. The case arose from a checkpoint operation conducted by police officers on August 31, 2006. The petitioner was driving a motorcycle with two companions when they were flagged down for traffic violations.

Criminal Law — Illegal Possession of Firearm and Ammunitions — Search Incident to Lawful Arrest — Animus Possidendi

Villa Crista Monte Realty & Development Corporation vs. Equitable PCI Bank

21st November 2018

AK842271
G.R. No. 208336
Primary Holding

An escalation clause without a concomitant de-escalation clause is void for violating Presidential Decree No. 1684 and the principle of mutuality of contracts, unless the established facts, circumstances, and admissions show the lender at times lowered interest rates or allowed the borrower discretion to continue with the repriced rates. Applied here, the absence of an express de-escalation clause did not void the repricing because downward adjustments were actually granted and the borrower was given notice and the option to reject increases by prepayment.

Background

Villa Crista Monte Realty & Development Corporation is a real estate developer engaged in developing a residential subdivision in Old Balara, Quezon City. Equitable PCI Bank, now Banco de Oro Unibank, Inc., is the commercial lender that extended its credit accommodations secured by real estate mortgage over subdivision lots. Presidential Decree No. 1684 governs stipulations increasing interest on loans or forbearances by requiring a correlative stipulation for reduction when maximum rates are lowered by law or by the Monetary Board.

Civil Law — Obligations and Contracts — Escalation Clause without De-escalation Clause, Mutuality of Contracts, and Contracts of Adhesion in Loan Agreements

People of the Philippines vs. CCC

19th November 2018

AK413293
G.R. No. 231925 , 843 Phil. 473
Primary Holding

In qualified rape where the offender is the victim's father and the victim is a minor, the father's moral ascendancy and influence substitute for the element of force, threat, or intimidation; furthermore, when an accused fails to move to quash a duplicitous information before arraignment, he is deemed to have waived the defect and may be convicted of as many offenses as are charged and proved under Section 3, Rule 120 of the Revised Rules of Criminal Procedure.

Background

AAA and her twin sister were born on July 6, 1997 to biological parents CCC (the appellant) and BBB. The twins were raised by their foster mother, VVV, until they were 11 years old. In 2009, they were sent back to their biological parents after allegedly stealing from their foster mother. The victim, AAA, was 15 years old at the time of the incidents.

Undetermined
Criminal Law — Qualified Rape — Article 266-A(1) of the Revised Penal Code — Moral Ascendancy Substituting for Violence — Award of Damages

Heirs of Tomas Arao vs. Heirs of Pedro Eclipse

19th November 2018

AK026673
G.R. No. 211425 , G.R. No. 221425
Primary Holding

A contract executed after the death of one of the purported parties is void ab initio and inexistent, and actions to declare such inexistence are imprescriptible under Article 1410 of the Civil Code, rendering the defense of laches unavailable. Consequently, a forged deed conveys no title, and all certificates of title issued pursuant thereto are void, notwithstanding registration under the Torrens system; however, an unregistered but notarized deed of sale remains valid and binding between the parties and their heirs, even against successors-in-interest with actual notice of the conveyance.

Background

Spouses Policarpio Eclipse and Cecilia Errera were the registered owners of Lot No. 1667 in Ugac Sur, Tuguegarao City, covered by Original Certificate of Title (OCT) No. 1546. Policarpio died on November 21, 1936, and Cecilia died on June 3, 1925. Their children—Pedro, Eufemia, Honorato, and Maria—inherited the property. In 1994, respondents (successors-in-interest of the Eclipse spouses) discovered that the subject land had been transferred to Tomas Arao (and subsequently to his children) based on a Deed of Absolute Sale dated September 5, 1969, purportedly executed by the long-deceased Policarpio. Respondents instituted an action for nullity of the deed and reconveyance, alleging the docu…

Undetermined
Civil Law — Property — Nullity of Forged Deed of Sale and Reconveyance — Imprescriptibility and Laches

Arrieta vs. Arrieta

19th November 2018

AK432007
G.R. No. 234808
Primary Holding

Extraterritorial service of summons effected solely by publication in a newspaper of general circulation, pursuant to an order authorizing such mode under the third clause of Section 15, Rule 14 of the Rules of Court, constitutes valid service and satisfies due process requirements, provided the defendant actually resides abroad and the action affects the personal status of the plaintiff; furthermore, a petition for annulment of judgment based on alleged denial of due process is barred by estoppel by laches when filed after an unreasonable and unexplained delay despite the petitioner's knowledge or constructive notice of the proceedings.

Background

Crescencio Arrieta (Cris) and Melania T. Arrieta were married in civil and church ceremonies in 1973 and 1974. In November 1991, Melania left for the United States, allegedly due to irreconcilable differences. She obtained a divorce decree in California in 1992 and married another man in 1993. The parties maintained an "open-book" arrangement wherein both knew of and tolerated each other's extramarital affairs. In January 2001, Cris filed a petition for declaration of nullity of marriage before the Regional Trial Court of Davao City, alleging Melania's psychological incapacity.

Undetermined
Civil Procedure — Annulment of Judgment — Extraterritorial Service of Summons — Due Process — Laches

Yap vs. People

14th November 2018

AK990400
G.R. No. 234217
Primary Holding

When intent to kill is not proven beyond reasonable doubt but wounds are inflicted upon the victim, the crime is not attempted murder but physical injuries only, and where the injuries are superficial and there is no evidence of incapacitation for labor or need for medical attendance exceeding nine days, the proper offense is slight physical injuries under Article 266 of the Revised Penal Code.

Background

Petitioner Johnny Garcia Yap and private complainant George Hao Ang had been friends for over ten years prior to the incident, sharing activities such as fishing, gambling, and socializing. On November 5, 2012, they arranged to meet at a KFC store along Vito Cruz St. in Manila. Petitioner was charged under Article 248 in relation to Article 6 of the Revised Penal Code for attempted murder, with the Information alleging treachery and evident premeditation.

Criminal Law — Attempted Murder — Intent to Kill — Downgrade to Slight Physical Injuries — Self-Defense — Treachery

Pacios vs. Tahanang Walang Hagdanan

14th November 2018

AK415284
G.R. No. 229579 , 843 Phil. 312
Primary Holding

The suspension of execution proceedings under Rule XI, Section 17 of the NLRC Rules of Procedure applies only "insofar as the reversal is concerned," requiring a determination of what part of the execution is affected by the reversal, and does not mandate automatic suspension of execution of the appealed decision. Execution may be authorized even pending appeal where petitioners are poor employees deprived of their only source of livelihood, consistent with the compassionate policy underlying Article 223 of the Labor Code and the constitutional mandate to afford full protection to labor.

Background

Tahanang Walang Hagdanan is a private organization engaged in producing and marketing handicrafts, utilizing employees who are mostly physically disabled, without one or both limbs. Sister Valeriana Baerts, a nun, recruited the petitioners to work for the organization. The petitioners were among the regular employees who were persons with disability of Tahanang Walang Hagdanan for years until their dismissal. The case involves the interplay of NLRC Rules of Procedure provisions governing appeal bonds, perfection of appeals, and execution of judgments in labor cases, set against the constitutional policy of affording full protection to labor.

Labor Law — Execution Pending Appeal — Release of Supersedeas Bond

Anacta, Jr. vs. Sandiganbayan

14th November 2018

AK100103
G.R. No. 219352 , 843 Phil. 252
Primary Holding

A public officer who knowingly appoints a person disqualified by the one-year prohibition on losing candidates under Section 6, Article IX-B of the Constitution and Section 94(b) of R.A. No. 7160 is guilty of unlawful appointments under Article 244 of the Revised Penal Code; legal disqualification under Article 244 includes temporary disqualification, and reliance on a recommending body does not negate the appointing authority's knowledge when the power to appoint is discretionary.

Background

Fidel V. Anacta, Jr. was the Municipal Mayor of Borongan, Eastern Samar. The Borongan Water District is a local water district created under P.D. No. 198, which vests the appointing authority for its Board of Directors in the mayor of the city or municipality when more than seventy-five percent of its active water service connections are within that locality. The case concerns the application of Article 244 of the Revised Penal Code, which penalizes unlawful appointments, alongside the one-year prohibition on appointing losing candidates under Section 6, Article IX-B of the Constitution and Section 94(b) of R.A. No. 7160.

Criminal Law — Unlawful Appointments — One-Year Prohibition for Losing Candidates

Republic of Philippines vs. Science Park of the Philippines, Inc.

12th November 2018

AK853305
G.R. No. 237714 , 843 Phil. 123 , CA-G.R. CV No. 108099 , LRC No. N-129
Primary Holding

To secure judicial confirmation of imperfect title under Section 14(1) of Presidential Decree No. 1529, an applicant must prove by clear, positive, and convincing evidence that: (a) the land forms part of the alienable and disposable lands of the public domain at the time of filing the application; and (b) the applicant and its predecessors-in-interest have been in open, continuous, exclusive, and notorious possession and occupation of the land under a bona fide claim of ownership since June 12, 1945 or earlier. Proof of specific acts of ownership—such as the nature and extent of cultivation, the number of crops planted, or the volume of produce harvested—is essential to substantiate the cl…

Background

Science Park of the Philippines, Inc. (SPPI) filed an application for original registration of a 7,691-square meter parcel of land denominated as Lot 5809, Psc-47, Malvar Cadastre, located in Barangay Luta Norte, Malvar, Batangas. SPPI claimed that the land formed part of the alienable and disposable land of the public domain and that it acquired ownership through a chain of transactions originating from Gervacio Lat, who allegedly possessed the land prior to June 12, 1945. The property passed from Gervacio to his daughter Ambrocia Lat, who sold it to Spouses Raymundo Linatoc and Maria Reyes in 1968. Upon their death, their heirs waived their rights in favor of Ernesto Linatoc, who subseque…

Undetermined
Land Registration — Original Registration — Judicial Confirmation of Imperfect Title under Section 14(1) of Presidential Decree No. 1529 — Requirements of Alienability and Disposability and Open, Continuous, Exclusive, and Notorious Possession since June

Tortal vs. Taniguchi

12th November 2018

AK274189
G.R. No. 212683
Primary Holding

A final and executory judgment may not be assailed collaterally in an appeal of a subsequent unrelated case; the exclusive remedy to challenge such judgment on grounds of lack of jurisdiction or extrinsic fraud is a separate petition for annulment of judgment under Rule 47 of the Rules of Civil Procedure, filed within four years from discovery of fraud or before the action is barred by laches or estoppel for lack of jurisdiction.

Background

Tortal and Taniguchi married on June 8, 1999, and lived in a house and lot in BF Homes, Parañaque City registered under TCT No. 142089 in Tortal's name. On April 11, 2000, Taniguchi instituted a petition for nullity of marriage before the Regional Trial Court of Parañaque. While that case was pending, Sales obtained a compromise judgment against Tortal for a debt in the Regional Trial Court of Calauag, Quezon, and caused the levy and public auction sale of the conjugal property on December 3, 2003, purchasing it herself for P3,500,000.00.

Undetermined
Civil Procedure — Annulment of Judgment under Rule 47 — Lack of Jurisdiction — Res Judicata

Republic vs. Jose Gamir-Consuelo Diaz Heirs Association, Inc.

12th November 2018

AK248954
G.R. No. 218732
Primary Holding

In a voluntary negotiated sale between the government and a private landowner, the parties are bound by the terms of their written contract; in the absence of any stipulation for interest or a reservation of the right to claim it, the landowner is not entitled to legal interest from the time of taking, and the parol evidence rule precludes consideration of prior demands not embodied in the written agreement.

Background

The Jose Gamir-Consuelo Diaz Heirs Association, Inc. was the registered owner of a 1,836-square-meter parcel of land in Davao City. The Department of Public Works and Highways had occupied the property since 1957, incorporating it into Sta. Ana Avenue, a national road. For decades no formal acquisition or expropriation proceeding was initiated. In 2005, after negotiations, the association and the Republic executed a Deed of Absolute Sale covering the property. The purchase price — ₱275,099.24 — was based on the 1957 value of the land. The deed contained no provision for the payment of interest, and the association did not insert any reservation of a right to claim it. Full payment was made,…

Laws on Local Government
Eminent Domain; Contracts — Just Compensation — Interest in Negotiated Sale — Parol Evidence Rule

Royal Plains View, Inc. vs. Mejia

12th November 2018

AK894433
G.R. No. 230832
Primary Holding

A contract to sell involving a commercial or industrial lot is not covered by the buyer-protection provisions of the Maceda Law (R.A. No. 6552), and the seller may unqualifiedly cancel the contract upon the buyer's default — but such cancellation must be made with notice to the defaulting party, and without prior demand for payment, the buyer has not incurred in legal delay (mora). The unilateral cancellation of a contract to sell without demand or notice is invalid, and the contract remains subsisting.

Background

The subject property is a 123,099-square-meter parcel of land in Magdum, Tagum City, Davao del Norte, originally registered under OCT No. (P-1324) P-232 in the name of the late Dominador Ramones and his wife Maria Ramones. During his lifetime, Dominador executed a Contract of Sale in favor of Bias Mejia, father of respondent Nestor C. Mejia, covering the western portion of the land, though the parties agreed to reduce the purchased area to six hectares. The remaining portion was sold to Pablo Benitez on February 17, 1965. Despite these transactions, the title remained in the name of the spouses Ramones. Petitioner Royal Plains View, Inc. is a real estate company represented by its president…

Civil Law — Contract to Sell vs. Contract of Sale — Cancellation/Rescission of Conditional Sale — Maceda Law (R.A. No. 6552) Applicability to Commercial/Industrial Lots

Heirs of Josefina Gabriel vs. Secundina Cebrero, et al.

12th November 2018

AK588990
G.R. No. 222737
Primary Holding

A complaint filed by an alleged attorney-in-fact who fails to attach a Special Power of Attorney to substantiate his authority to sign the verification and certification against forum shopping is not deemed filed, and the court does not acquire jurisdiction over the complaint. The substitution of heirs after the plaintiff's death does not cure the defect because jurisdiction over the plaintiff is acquired upon the filing of the complaint, and mere allegation of authority is not evidence.

Background

Josefina Gabriel and Segundina Cebrero were parties to a prior case involving annulment of revocation of donation, Civil Case No. 83-21629, which was resolved through an amicable settlement dated January 11, 1991. Under the settlement, Gabriel recognized Cebrero's absolute ownership of a property in Sampaloc, Manila, covered by TCT No. 158305, in consideration of P8,000,000.00. Cebrero executed a real estate mortgage over the property on January 24, 1991, through her attorney-in-fact Remedios Muyot, to secure the payment. The property was registered under the name of Cebrero's late husband, Virgilio Cebrero.

Civil Procedure — Verification and Certification Against Forum Shopping — Authority of Attorney-in-Fact

Noell Whessoe, Inc. v. Independent Testing Consultants, Inc.

7th November 2018

AK422916
G.R. No. 199851
Primary Holding

A contractor may be solidarily liable with the owner and the subcontractor for unpaid obligations to the subcontractor's supplier under Article 1729 of the Civil Code despite the absence of a contract between the contractor and supplier; however, full payment to the subcontractor serves as a valid defense against this liability. Furthermore, a corporation, being an artificial being with no feelings, emotions, or senses, is incapable of experiencing mental suffering and cannot be awarded moral damages.

Background

The case arises from a construction project involving multiple layers of contracting and subcontracting relationships. It addresses the statutory protection afforded to suppliers and laborers under Article 1729 of the Civil Code, which creates an exception to the general rule on privity of contracts to shield suppliers from unscrupulous contractors and possible connivance between owners and contractors. The decision also clarifies the extent of a corporation's entitlement to moral damages, distinguishing between natural and artificial persons in the context of reparable injuries.

Corporation and Basic Securities Law
Corporation as an Artificial Being

Maria Fe Cruz Aquino y Velasquez vs. People of the Philippines

7th November 2018

AK568854
G.R. No. 217349
Primary Holding

An Information that erroneously designates the offense under one paragraph of a penal statute may sustain a conviction under another paragraph if the factual allegations in the body of the Information sufficiently describe all elements of the offense proved. In cases under Republic Act No. 8239, forging supporting documents for a passport application and subsequently using those forged documents constitutes a consummated violation of Section 19(c)(1); territorial jurisdiction lies where any essential element of the crime was committed, including the place where the accused was found and arrested while using the forged documents.

Background

On November 3, 1997, petitioner, accompanied by two minor children, appeared at the United States Embassy in Manila to apply for non-immigrant visas. She presented Philippine passports and several supporting civil documents — a marriage contract, birth certificates, and a driver’s license — all bearing the surname Aquino. A consular officer suspected fraud and referred the matter to the Anti-Fraud Unit. Verification with the National Statistics Office and the Land Transportation Office revealed that none of the submitted documents existed in official records. Petitioner was turned over to the National Bureau of Investigation for prosecution.

Criminal Law — Republic Act No. 8239 (Philippine Passport Law) — Forgery of Supporting Documents and Use Thereof; Venue and Jurisdiction

Commissioner of Internal Revenue vs. Standard Insurance Co., Inc.

7th November 2018

AK793430
G.R. No. 219340
Primary Holding

No court shall have the authority to grant an injunction to restrain the collection of any national internal revenue tax, and an action for declaratory relief cannot be maintained to challenge the validity or application of a tax statute after the taxpayer has already breached it, internal revenue taxes being self-assessing and demandable without further assessment, and the taxpayer’s exclusive remedy being an appeal to the Court of Tax Appeals.

Background

Standard Insurance Co., Inc. is a non-life insurance company subject to documentary stamp tax under Section 184 of the National Internal Revenue Code of 1997 (NIRC) on its policies of insurance upon property, and to value-added tax under Section 108. Republic Act No. 10001 had reduced the tax rate on life insurance premiums from 5% to 2%, while non-life insurance policies remained taxed at higher rates under the unamended sections. House Bill No. 3235, seeking to rationalize taxes on non-life insurance policies to equalize treatment, was pending in Congress. Standard Insurance faced deficiency DST assessments for 2011, 2012, and 2013, and, rather than pursuing its remedy before the Court of…

Taxation — Prohibition on Injunctions to Restrain Tax Collection — Declaratory Relief Not a Remedy to Contest Tax Assessments

Lajave Agricultural Management and Development Enterprises, Inc. vs. Javellana

7th November 2018

AK005028
G.R. No. 223785
Primary Holding

A complaint for collection of sum of money to recover deficiency rentals that accrued prior to the demand to vacate — hence before the lessee’s possession became unlawful — may be filed independently of a pending unlawful detainer case, without offending the prohibition on splitting a single cause of action, litis pendentia, or forum shopping, where the damages sought have no direct relation to the loss of material possession and require resolution of contractual issues beyond the summary jurisdiction of the ejectment court.

Background

Agustin Javellana co-owned sugar lands in Silay City and Talisay City, Negros Occidental, inherited from his father, the late Justice Luis Javellana. In 1998, Lajave Agricultural Management and Development Enterprises, Inc. (Lajave) leased a seven-hectare portion in Hacienda San Isidro, Silay City, under a ten-year Contract of Lease for sugarcane planting. After the death of Agustin’s father in 1993, the lease expanded informally to cover other co-owned properties. The lease expired after the 1997-1998 crop year, but Lajave continued to occupy the premises without a renewal, its occupancy merely tolerated. Disputes arose concerning the timeliness and correctness of annual compensation, lead…

Remedial Law — Civil Procedure — Splitting a Cause of Action; Litis Pendentia; Forum Shopping; Unlawful Detainer; Collection of Sum of Money

Sindophil, Inc. vs. Republic of the Philippines

7th November 2018

AK917718
G.R. No. 204594
Primary Holding

The presumption that a holder of a Torrens title is an innocent purchaser for value is disputable and may be overcome by contrary evidence; once a prima facie case is established disputing this presumption, the adverse party cannot simply rely on the presumption of good faith and must put forward evidence that the property was acquired without notice of any defect in its title.

Background

The case involves a 2,791-square-meter parcel of land on Aurora Boulevard (Tramo), Pasay City, known as the Tramo property. The Republic of the Philippines held TCT No. 6735 covering Lot 3270, which was never subdivided. A series of transfers occurred based on TCT No. 10354, purportedly issued to Marcelo R. Teodoro, from which all subsequent titles—including Sindophil's TCT No. 132440—derived. The Republic filed a complaint for revocation, annulment, and cancellation of certificates of title, alleging that TCT No. 10354 was spurious and that the property remained registered in the Republic's name.

Property Registration — Torrens Title — Innocent Purchaser for Value — Nullification of Spurious Certificate of Title

Highpoint Development Corporation vs. Republic of the Philippines

7th November 2018

AK050481
G.R. No. 224389
Primary Holding

A CENRO or PENRO certification alone is insufficient to prove that a land is alienable and disposable for purposes of original registration of title; the applicant must also present a certified true copy of the original classification approved by the DENR Secretary.

Background

Petitioner Highpoint Development Corporation sought the original registration of title over a 43,919-square-meter parcel of land in Lilo-an, Cebu under Presidential Decree No. 1529, otherwise known as the Property Registration Decree. The Republic of the Philippines, through the Office of the Solicitor General, opposed the application, arguing that petitioner failed to sufficiently prove that the subject property was alienable and disposable land of the public domain and that it had established the required possession.

Land Registration — Original Registration of Title — Proof of Alienable and Disposable Land Classification
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