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Case Digest: ALU-TUCP, et.al., vs. NLRC et.al., G.R. No. 109902


ALU-TUCP, et.al., vs. NLRC et.al., G.R. No. 109902 August 2, 1994

Subject: Statutory Construction


FACTS

On 5 July 1990, Petitioners, as employees of private respondent National Steel Corporation (NSC), filed separate complaints for unfair labor practice, regularization and monetary benefits with the NLRC, Sub-Regional Arbitration Branch XII, Iligan City. The complaints were consolidated and after hearing, the Labor Arbiter declared petitioners “regular project employees who shall continue their employment as such for as long as such [project] activity exists,” but entitled to the salary of a regular employee pursuant to the provisions in the collective bargaining agreement. It also ordered payment of salary differentials.

The NLRC in its questioned resolutions modified the Labor Arbiter’s decision. It affirmed the Labor Arbiter’s holding that petitioners were project employees since they were hired to perform work in a specific undertaking — the Five Years Expansion Program, the completion of which had been determined at the time of their engagement and which operation was not directly related to the business of steel manufacturing. The NLRC, however, set aside the award to petitioners of the same benefits enjoyed by regular employees for lack of legal and factual basis.

The law on the matter is Article 280 of the Labor Code, where the petitioners argue that they are “regular” employees of NSC because: (i) their jobs are “necessary, desirable and work-related to private respondent’s main business, steel-making”; and (ii) they have rendered service for six (6) or more years to private respondent NSC.

ISSUE:

whether or not petitioners are properly characterized as "project employees" rather than "regular employees" of NSC.

Ruling:

YES.

The present case therefore strictly falls under the definition of "project employees" on paragraph one of Article 280 of the Labor Code, as amended. Moreover, it has been held that the length of service of a project employee is not the controlling test of employment tenure but whether or not "the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee.

In this case, the employment of each "project worker" is dependent and co-terminus with the completion or termination of the specific activity or undertaking for which he was hired which has been pre-determined at the time of engagement. Since, there is no showing that they (13 complainants) were engaged to perform work-related activities to the business of respondent which is steel making, there is no logical and legal sense of applying to them the proviso under the second paragraph of Article 280 of the Labor Code, as amended

Case Digest: O'Connor v. Oakhurst Dairy - 851 F.3d 69 (1st Cir. 2017)


O'Connor v. Oakhurst Dairy - 851 F.3d 69 (1st Cir. 2017)

Subject: Statutory Construction


FACTS

Plaintiffs Kevin O'Connor and four others ("Drivers") worked as delivery drivers for defendant Oakhurst Dairy ("Oakhurst"). The Drivers filed a lawsuit against Oakhurst in federal district court seeking unpaid overtime wages under the federal Fair Labor Standards Act, 29 U.S.C.S.  201 et seq., and the Maine overtime law, 26 M.R.S.A.  664(3).

 The matter was referred to a magistrate judge, and the parties filed cross-motions for partial summary judgment to resolve their dispute over whether the Drivers were covered by Exemption F of Maine's minimum wage and overtime law. Exemption F stated that the protection of the overtime law did not apply to certain listed occupations, and particularly work that involved the "packing for shipment or distribution" of agricultural produce, meat and fish products, and perishable foods.

The Drivers contended that they fell outside of Exemption F and thus the overtime law protected them. Oakhurst argued to the contrary. The magistrate judge recommended that Oakhurst's motion for summary judgment be granted, and that the Drivers' motion be denied. The district court adopted the magistrate's recommendation and granted Oakhurst summary judgment. The Drivers appealed.

ISSUE

Whether or not the drivers fall within Exemption F of Maine's overtime law.

RULING

No.

The appellate court reversed the district court's decision and remanded the matter for further proceedings. The court observed that 664(3) omitted a final comma after the word "shipment," and thus there was an ambiguity as to whether it referred to two distinct exempt activities—"packing for shipment" and "distribution," and the act's legislative history did not cure that ambiguity.

Maine's default rule of construction, which required that wage and hours law be liberally construed to further its remedial purpose, favored a narrow reading, such as that urged by the Drivers. The court adopted the Drivers' interpretation: 664(3) referred to the single activity of "packing," whether the "packing" was for "shipment" or for "distribution," and although the Drivers handled perishable foods, they did not engage in "packing" them. As a result, the Drivers fell outside Exemption F.

Exemption F covers employees whose work involves the handling—in one way or another—of certain, expressly enumerated food products. Specifically, Exemption F states that the protection of the overtime law does not apply to: The canning, processing, preserving, freezing, drying, marketing, storing, packing for shipment or distribution of: (1) Agricultural produce; (2) Meat and fish products; and (3) Perishable foods. Me. Rev. Stat. Ann. tit. 26, 664(3)(F).

Case Digest: Loyola Grand Villas Homeowners Association, Inc. vs CA, et. al., G.R. No. 117188


Loyola Grand Villas Homeowners Association, Inc. vs CA, et. al., G.R. No. 117188

Subject: Statutory Construction


FACTS

On August 7, 1997, Loyola Grand Villas Homeowners Association, Inc. (LGVHAI) was organized on 8 February 1983 as the homeowners' association for Loyola Grand Villas. It was also registered as the sole homeowners' association in the said village with the Home Financing Corporation (which eventually became Home Insurance Guarantee Corporation ["HIGC"]).

However, the association was not able file its corporate by-laws. The LGVHAI officers then tried to register its By-Laws in 1988, but they failed to do so. They then discovered that there were two other homeowners' organizations within the subdivision - the Loyola Grand Villas Homeowners (North) Association, Inc. [North Association] and herein Petitioner Loyola Grand Villas Homeowners (South) Association, Inc. ["South Association].

Upon inquiry by the LGVHAI to HIGC, it was discovered that LGVHAI was dissolved for its failure to submit its by-laws within the period required by the Corporation Code and for its non-user of corporate charter because HIGC had not received any report on the association's activities. These paved the way for the formation of the North and South Associations. LGVHAI then lodged a complaint with HIGC Hearing Officer Danilo Javier and questioned the revocation of its registration.

Hearing Officer Javier ruled in favor of LGVHAI, revoking the registration of the North and South Associations. Petitioner South Association appealed the ruling, contending that LGVHAI's failure to file its by-laws within the period prescribed by Section 46 of the Corporation Code effectively automatically dissolved the corporation. The Appeals Board of the HIGC and the Court of Appeals both rejected the contention of the Petitioner affirmed the decision of Hearing Officer Javier.

ISSUE

W/N LGVHAI's failure to file its by-laws within the period prescribed by Section 46 of the Corporation Code had the effect of automatically dissolving the said corporation.

RULING

No.

The pertinent provision of the Corporation Code that is the focal point of controversy in this case states: Sec. 46. Adoption of by-laws. - Every corporation formed under this Code, must within one (1) month after receipt of official notice of the issuance of its certificate of incorporation by the Securities and Exchange Commission, adopt a code of by-laws for its government not inconsistent with this Code.

Ordinarily, the word "must" connote an imposition of duty which must be enforced. However, the word "must" in a statute, like "shall," is not always imperative. It may be consistent with an exercise of discretion. If the language of a statute, considered as a whole with due regard to its nature and object, reveals that the legislature intended to use the words "shall" and "must" to be directory, they should be given that meaning. Moreover, By-Laws may be necessary to govern the corporation, but By-Laws are still subordinate to the Articles of Incorporation and the Corporation Code.

In fact, there are cases where By-Laws are unnecessary to the corporate existence and to the valid exercise of corporate powers. The Corporation Code does not expressly provide for the effects of non-filing of By-Laws. However, these have been rectified by Section 6 of PD 902-A which provides that SEC shall possess the power to suspend or revoke, after proper notice and hearing, the franchise or certificate of registration of corporations upon failure to file By-Laws within the required period. This shows that there must be notice and hearing before a corporation is dissolved for failure to file its By-Laws. Even assuming that the existence of a ground, the penalty is not necessarily revocation, but may only be suspension.

Case Digest: PURITA BERSABAL VS HON JUDGE SERFIN SALVADOR


PURITA BERSABAL VS HON JUDGE SERFIN SALVADOR

Subject: Statutory Construction


FACTS

On March 23, 1972, petitioner Purita Bersabal seeks to annul the orders of respondent Judge of August 4, 1971, October 30, 1971, and March 15, 1972 and to compel said respondent Judge to decide petitioner's perfected appeal on the basis of the evidence and records of the case submitted by the City Court of Caloocan City plus the memorandum already submitted by the petitioner and respondents.

Tan That and Ong Pin Tee filed an ejectment suit against Bersabal in Caloocan City. The rendered decision on November 25, 1970, was appealed by Bersabal. During the pendency of the appeal, the respondent court (of Hon. Salvador) issued an order which required the Clerk of Court to transmit within 15 days of receipt the transcripts of stenographic notes and for the counsels of both parties to file their respective memoranda within 30 days upon receipt. Afterwhich, the case shall be deemed submitted for decision.

Bersabal received the order on April 17, 1971. The transcript of stenographic notes not yet been submitted, Bersabal then filed on May 5, 1971, an EX-PARTE MOTION TO SUBMIT MEMORANDUM WITHIN 30 DAYS FROM RECEIPT OF NOTICE OF SUBMISSION which was granted on May 7, 1971. However, before Bersabal received the notice, Salvador issued an August 4, 1971, order stating that the defendant-appellant (Bersabal) failed top rosecute her appeal

ISSUE

WON the respondent court can dismiss the case on the mere failure of the petitioner to file her memorandum.

RULING

NO. RA 296 states that the parties may submit memoranda if requested. With the use of the word “may”, the party has an option not to submit the needed memorandum since the word is not mandatory but rather, discretionary. However, the Court pointed out that the respondent court should not dismiss the appeal due to the failure of the petitioner to submit a memorandum but dismiss the petition based on facts available to it. Thus, the Court set aside the decision of the respondent court and ordered it to decide the case base on the merits of the case.

Case Digest: FULE vs. CA, G.R. No. 79094


FULE vs. CA, G.R. No. 79094, June 22, 1988

Subject: Statutory Construction


FACTS

This is a Petition for Review on certiorari of the Decision of respondent Appellate Court, which affirmed the judgment of the Regional Trial Court, Lucena City, Branch LIV, convicting petitioner (the accused-appellant) of Violation of Batas Pambansa Blg. 22 (The Bouncing Checks Law) on the basis of the Stipulation of Facts entered into between the prosecution and the defense during the pre-trial conference in the Trial Court.

At the hearing of August 23, 1985, only the prosecution presented its evidence.  At the subsequent hearing on September 17, 1985, petitioner-appellant waived the right to present evidence and, in lieu thereof, submitted a Memorandum confirming the Stipulation of Facts.

The Trial Court convicted petitioner-appellant. On appeal, respondent Appellate Court upheld the Stipulation of Facts and affirmed the judgment of conviction. Hence, this recourse.

ISSUE

Whether or not CA erred in the affirming RTC’s decision convicting the petitioner of the offense charged, despite the cold fact that the basis of the conviction was based solely on the stipulation of facts made during the pre-trial on August 8, 1985, which was not signed by the petitioner, nor by his counsel.

RULING

YES, CA erred in affirming RTC’s decision.

Under the rule of statutory construction, negative words and phrases are to be regarded as mandatory while those in the affirmative are merely directory (McGee vs. Republic, 94 Phil. 820 [1954]).

In this case, Rule 118, Section 4 provides that “Pre-trial agreements must be signed. — No agreement or admission made or entered during the pre-trial conference shall be used in evidence against the accused unless reduced to writing and signed by him and his counsel.” The use of the term "shall" further emphasize its mandatory character and means that it is imperative, operating to impose a duty which may be enforced. The conclusion is inevitable, therefore, that the omission of the signature of the accused and his counsel, as mandatorily required by the Rules, renders the Stipulation of Facts inadmissible in evidence.

Case Digest: DRA. BRIGIDA S. BUENASEDA, et.al., vs. SECRETARY JUAN FLAVIER, et.al., G.R. No. 106719


DRA. BRIGIDA S. BUENASEDA, et.al., vs. SECRETARY JUAN FLAVIER, et.al., G.R. No. 106719, September 21, 1993

Subject: Statutory Construction 


FACTS

This is a Petition for Certiorari, Prohibition and Mandamus, with Prayer for Preliminary Injunction or Temporary Restraining Order, under Rule 65 of the Revised Rules of Court.

The petition seeks to nullify the Order of the Ombudsman dated January 7, 1992, directing the suspension of petitioners. The petition also asks for an order directing the Ombudsman to disqualify Director Raul Arnaw and Investigator Amy de Villa-Rosero, of the Office of the Ombudsman, from participation in the preliminary investigation of the charges against petitioner.

The questioned order was issued in connection with the administrative complaint filed with the Ombudsman (OBM-ADM-0-91-0151) by the private respondents against the petitioners for violation of the Anti-Graft and Corrupt Practices Act.

Joining petitioners, the Solicitor General contends that assuming arguendo that the Ombudsman has the power to preventively suspend erring public officials and employees who are working in other departments and offices, the questioned order remains null and void for his failure to comply with the requisites in Section 24 of the Ombudsman Law.

The Solicitor General and the petitioners claim that under the 1987 Constitution, the Ombudsman can only recommend to the heads of the departments and other agencies the preventive suspension of officials and employees facing administrative investigation conducted by his office. Hence, he cannot order the preventive suspension himself.

ISSUE

Whether or not the Ombudsman has the power to suspend government officials and employees working in offices other than the Office of the Ombudsman, pending the investigation of the administrative complaints filed against said officials and employees.

RULING

Yes.

Under the principle of construction (or interpretation) of statutes and other documents, Noscitor a sociis, the meaning of words should be identified by reference to other words in the context of which they appear.

In this case, when the constitution vested on the Ombudsman the power "to recommend the suspension" of a public official or employees, it referred to "suspension," as a punitive measure. All the words associated with the word "suspension" in said provision referred to penalties in administrative cases, e.g. removal, demotion, fine, censure. Under the rule of Noscitor a sociis, the word "suspension" should be given the same sense as the other words with which it is associated.

Section 24 of R.A. No. 6770, which grants the Ombudsman the power to preventively suspend public officials and employees facing administrative charges before him, is a procedural, not a penal statute. The preventive suspension is imposed after compliance with the requisites therein set forth, as an aid in the investigation of the administrative charges.

Under the Constitution, the Ombudsman is expressly authorized to recommend to the appropriate official the discipline or prosecution of erring public officials or employees. In order to make an intelligent determination whether to recommend such actions, the Ombudsman has to conduct an investigation. In turn, in order for him to conduct such investigation in an expeditious and efficient manner, he may need to suspend the respondent.

Case Digest: San Pablo Manufacturing Corporation vs. CIR, G.R.No. 147749


San Pablo Manufacturing Corporation vs. CIR, G.R. No. 147749. June 22, 2006

Subject: Statutory Construction


ACTS

San Pablo Manufacturing Corporation (SPMC) is a domestic corporation engaged in the business of milling, manufacturing and exporting of coconut oil and other allied products. It was assessed and ordered to pay by the Commissioner of Internal Revenue miller's tax

and manufacturer's sales tax, among other deficiency taxes, for taxable year 1987 particularly on SPMC's sales of crude oil to United Coconut Chemicals, Inc. (UNICHEM) while the deficiency sales tax was applied on its sales of corn and edible oil as manufactured products.

SPMC opposed the assessments. The Commissioner denied its protest. SPMC appealed the denial of its protest to the Court of Tax Appeals (CTA) by way of a petition for review. docketed as CTA Case No. 5423. It insists on the liberal application of the rules because, on the the merit’s of the petition, SPMC was not liable for the 3% miller's tax. It maintains that the crude oil which it sold to UNICHEM was actually exported by UNICHEM as an ingredient of fatty acid and glycerine, hence, not subject to miller's tax pursuant to Section 168 of the 1987 Tax Code.

Since UNICHEM, the buyer of SPMC's milled products, subsequently exported said products, SPMC should be exempted from the miller's tax.

ISSUE

Whether or not SPMC's sale of crude coconut oil to UNICHEM was subject to the 3% miller's tax.

RULING

Yes, SPMC's sale of crude coconut oil to UNICHEM is subject to the 3% miller's tax.

Based on the rule of the maxim “Expressio unius est exclusio alterius”, anything that is not included in the enumeration is excluded therefrom and a meaning that does not appear nor is intended or reflected in the very language of the statute cannot be placed therein. The rule proceeds from the premise that the legislature would not have made specific enumerations in a statute if it had the intention not to restrict its meaning and confine its terms to those expressly mentioned.

In this case, the language of the exempting clause of Section 168 of the 1987 Tax Code was clear. The tax exemption applied only to the exportation of rope, coconut oil, palm oil, copra by-products and desiccated coconuts, whether in their original state or as an ingredient or part of any manufactured article or products, by the proprietor or operator of the factory or by the miller himself. The application of “Expressio unius est exclusio alterius” in this case is consistent with the construction of tax exemptions in strictissimi juris against the taxpayer. To allow SPMC’s claim for tax exemption will violate these established principles and unduly derogate sovereign authority.

Case Digest: Republic vs Hon. Migrino, et.al., G.R. No. 89483


Republic vs Hon. Migrino, et.al., G.R. No. 89483. August 30, 1990

Subject: Statutory Construction


FACTS

This case puts in issue the authority of the Presidential Commission on Good Government (PCGG), through the New Armed Forces of the Philippines Anti-Graft Board (hereinafter referred to as the "Board"), to investigate and cause the prosecution of petitioner, a retired military officer, for violation of Republic Acts Nos. 3019 and 1379.

The controversy traces its roots to the order of then PCGG Chairman Jovito R. Salonga, dated May 13, 1986, which created the New Armed Forces of the Philippines Anti-Graft Board. The Board was created to "investigate the unexplained wealth and corrupt practices of AFP personnel, both retired and in active service."

Acting on information received by the Board, private respondent Lt. Col. Troadio Tecson (ret.) was required by the Board to submit his explanation/comment together with his supporting evidence by October 31, 1987. Private respondent requested, and was granted, several postponements, but was unable to produce his supporting evidence because they were allegedly in the custody of his bookkeeper who had gone abroad.

Just the same, the Board proceeded with its investigation and submitted its resolution, dated June 30, 1988, recommending that private respondent be prosecuted and tried for violation of Rep. Act No. 3019, as amended, and Rep. Act No. 1379, as amended.

The case was set for preliminary investigation by the PCGG. Private respondent moved to dismiss the case. In a resolution dated February 8, 1989, the PCGG denied the motion to dismiss for lack of merit. Private respondent moved for reconsideration, but this was denied by the PCGG in a resolution dated March 8, 1989. Private respondent was directed to submit his counter-affidavit and other controverting evidence on March 20, 1989.

On March 13, 1989, private respondent filed a petition for prohibition with preliminary injunction with the Regional Trial Court in Pasig, Metro Manila. Petitioner filed a motion to dismiss and opposed the application for the issuance of a writ of preliminary injunction on the principal ground that the Regional Trial Court had no jurisdiction over the Board. Private respondent opposed the motion to dismiss. Petitioner replied to the opposition.

On June 23, 1989, respondent judge denied petitioner’s motion to dismiss. On June 26, 1989, respondent judge granted the application for the issuance of a writ of preliminary injunction, enjoining petitioners from investigating or prosecuting private respondent under Rep. Acts Nos. 3019 and 1379 upon the filing of a bond in the amount of Twenty Thousand Pesos (P20,000.00). Hence, the instant petition.

One of the contentions of private respondent Tecson is that he is not one of the subordinates contemplated in E.O. Nos. 1, 2, 14, and 14-A as the alleged illegal acts being imputed to him, that of alleged amassing wealth beyond his legal means while Finance Officer of the Philippine Constabulary, are acts of his own alone, not connected with his being a crony, business associate, etc. or subordinate as the petition does not allege so; hence, the PCGG has no jurisdiction to investigate him; that if indeed private respondent amassed wealth beyond his legal means, the procedure laid down by Rep. Act 1379 as already pointed out before, be applied; and since, he has been separated from the government more than four years ago, the action against him under Republic Act 1379 has already prescribed.

According to petitioners, the PCGG has the power to investigate and cause the prosecution of private respondent because he is a "subordinate" of former President Marcos.

ISSUE/S:

Whether or not private respondent acted as a "subordinate" of Pres. Marcos within the contemplation of E.O. No. 1, the law creating the PCGG, when he allegedly unlawfully acquired the properties.

RULING

No.

Applying the rule in statutory construction known as ejusdem generis, that is—where general words follow an enumeration of persons or things, by words of a particular and specific meaning, such general words are not to be construed in their widest extent but are to be held as applying only to persons or things of the same kind or class as those specifically mentioned.

The term "subordinate" as used in E.O. Nos. 1 and 2 would refer to one who enjoys a close association or relation with former Pres. Marcos and/or his wife, similar to the immediate family member, relative, and close associate in E.O. No. 1 and the close relative, business associate, dummy, agent, or nominee in E.O. No. 2. It does not suffice, as in this case, that the respondent is or was a government official or employee during the administration of former Pres. Marcos. There must be prima facie showing that the respondent unlawfully accumulated wealth by virtue of his close association or relation with former Pres. Marcos and/or his wife.

The alleged unlawful accumulation of wealth is not that contemplated in E.O. Nos. 1, 2, 14 and 14-A. It would appear that private respondent accumulated his wealth for his own account. Therefore, this case is beyond the jurisdiction of PCGG.

Case Digest: Colgate-Palmolive Philippines vs Hon. Gimenez, G.R. No. L-14787


Colgate-Palmolive Philippines vs Hon. Gimenez, G.R. No. L-14787, January 28, 1961

Subject: Statutory Construction


FACTS

The petitioner Colgate-Palmolive Philippines, Inc. is a corporation duly organized and existing under Philippine laws engaged in the manufacture of toilet preparations and household remedies. On several occasions, it imported from abroad various materials such as irish moss extract, sodium benzoate, sodium saccharinate precipitated calcium carbonate and dicalcium phosphate, for use as stabilizers and flavoring of the dental cream it manufactures. For every importation made of these materials, the petitioner paid to the Central Bank of the Philippines the 17% special excise tax on the foreign exchange used for the payment of the cost, transportation and other charges incident thereto, pursuant to Republic Act No. 601, as amended, commonly known as the Exchange Tax Law.

On March 14, 1956, the petitioner filed with the Central Bank three applications for refund of the 17% special excise tax it had paid in the aggregate sum of P113,343.99. The claim for refund was based on section 2 of Republic Act 601. After the applications were processed by the officer-in-charge of the Exchange Tax Administration of the Central Bank, that official advised, the petitioner that of the total sum of P113,343.99 claimed by it for refund, the amount of P23,958.13 representing the 17% special excise tax on the foreign exchange used to import irish moss extract, sodium benzoate and precipitated calcium carbonate had been approved. The auditor of the Central Bank, however, refused to pass in audit its claims for refund even for the reduced amount fixed by the Officer-in-Charge of the Exchange Tax Administration, on the theory that toothpaste stabilizers and flavors are not exempt under section 2 of the Exchange Tax Law.

Petitioner appealed to the Auditor General, but the latter or, December 4, 1958 affirmed the ruling of the auditor of the Central Bank, maintaining that the term "stabilizer and flavors" mentioned in section 2 of the Exchange Tax Law refers only to those used in the preparation or manufacture of food or food products. Not satisfied, the petitioner brought the case to this Court thru the present petition for review.

ISSUE

Whether or not the foreign exchange used by petitioner for the importation of dental cream stabilizers and flavors is exempt from the 17% special excise tax imposed by the Exchange Tax Law, (Republic Act No. 601) so as to entitle it to refund under section 2 thereof.

RULING

No, it is inclusive.

The ruling of the Auditor General that the term "stabilizer and flavors" as used in the law refers only to those materials actually used in the preparation or manufacture of food and food products is based, apparently, on the principle of statutory construction that "general terms may be restricted by specific words, with the result that the general language will be limited by the specific language which indicates the statute's object and purpose." The rule, however, is, applicable only to cases where, except for one general term, all the items in an enumeration belong to or fall under one specific class.

In this case, on the basis of the grouping of the articles alone, it cannot validly be maintained that the term "stabilizer and flavors" as used in the above-quoted provision of the Exchange Tax Law refers only to those used in the manufacture of food and food products. This view is supported by the principle "Ubi lex non distinguish nec nos distinguire debemos", or "where the law does not distinguish, neither do we distinguish". Since the law does not distinguish between "stabilizer and flavors" used in the preparation of food and those used in the manufacture of toothpaste or dental cream, we are not authorized to make any distinction and must construe the words in their general sense. The rule of construction that general and unlimited terms are restrained and limited by particular recitals when used in connection with them, does not require the rejection of general terms entirely. It is intended merely as an aid in ascertaining the intention of the legislature and is to be taken in connection with other rules of construction.

Case Digest: De Villa vs CA et.al., G.R. No. 87416


De Villa vs CA et.al., G.R. No. 87416, April 8, 1991

Subject: Statutory Construction


FACTS

This petition for review on certiorari seeks to reverse and set aside the decision* of the Court of Appeals promulgated on February 1, 1989, in CA-G.R. SP No. 16071 entitled "Cecilio S. de Villa vs. Judge Job B. Madayag, etc. and Roberto Z. Lorayes," dismissing the petition for certiorari filed therein.

On October 5, 1987, petitioner Cecilio S. de Villa was charged before the Regional Trial Court of the National Capital Judicial Region (Makati, Branch 145) with violation of Batas Pambansa Bilang 22.

After arraignment and after private respondent had testified on direct examination, petitioner moved to dismiss the Information on the following grounds: (a) Respondent court has no jurisdiction over the offense charged; and (b) That no offense was committed since the check involved was payable in dollars, hence, the obligation created is null and void pursuant to Republic Act No. 529 (An Act to Assure Uniform Value of Philippine Coin and Currency).

Petitioner argues that the check in question was drawn against the dollar account of petitioner with a foreign bank, and is therefore, not covered by the Bouncing Checks Law (B.P. Blg. 22).

On July 19, 1988, respondent court issued its first questioned orders stating accused's motion to dismiss dated July 5, 1988, is denied for lack of merit. Petitioner moved for reconsideration, but his motion was subsequently denied by respondent court.

Petitioner then filed for certiorari seeking to declare the nullity of the aforequoted orders dated July 19, 1988, and September 6, 1988, in the CA. On February 1, 1989, CA dismissed the petition for review. A motion for reconsideration of the said decision was filed by the petitioner on February 7, 1989, but the same was denied by the Court of Appeals in its resolution dated March 3, 1989. Hence this petition.

ISSUE

Whether or not the Regional Trial Court of Makati has jurisdiction over the case in question.

RULING

Yes, the trial court's jurisdiction over the case, subject of this review, cannot be questioned.

Under a cardinal principle in statutory construction that where the law does not distinguish courts should not distinguish. Parenthetically, the rule is that where the law does not make any exception, courts may not except something unless compelling reasons exist to justify it.

In this case, citing a decided case where SC ruled "that jurisdiction or venue is determined by the allegations in the information." The information under consideration specifically alleged that the offense was committed in Makati, Metro Manila and therefore, the same is controlling and sufficient to vest jurisdiction upon the Regional Trial Court of Makati. The Court acquires jurisdiction over the case and over the person of the accused upon the filing of a complaint or information in court which initiates a criminal action. it is undisputed that the check in question was executed and delivered by the petitioner to herein private respondent at Makati, Metro Manila. The currency is immaterial under the Bouncing Checks Law (B.P. Blg. 22), foreign checks, provided they are either drawn or issued in the Philippines though payable outside thereof are within the coverage of said law.

Case Digest: Pilar vs COMELEC, G.R. No. 115245


Pilar vs COMELEC, G.R. No. 115245, July 11, 1995

Subject: Statutory Construction


FACTS

This is a petition for certiorari under Rule 65 of the Revised Rules of Court assailing the Resolution dated April 28, 1994, of the Commission on Elections (COMELEC) in UND No. 94-040.

On March 22, 1992, petitioner Juanito C. Pilar filed his certificate of candidacy for the position of member of the Sangguniang Panlalawigan of the Province of Isabela.

On March 25, 1992, petitioner withdrew his certificate of candidacy.

In M.R. Nos. 93-2654 and 94-0065 dated November 3, 1993, and February 13, 1994 respectively, the COMELEC imposed upon petitioner the fine of Ten Thousand Pesos (P10,000.00) for failure to file his statement of contributions and expenditures.

In M.R. No. 94-0594 dated February 24, 1994, the COMELEC denied the motion for reconsideration of petitioner and deemed final M.R. Nos. 93-2654 and 94-0065.

Petitioner went to the COMELEC En Banc (UND No. 94-040), which denied the petition in a Resolution dated April 28, 1994 (Rollo, pp. 10-13).

Petitioner argues that he cannot be held liable for failure to file a statement of contributions and expenditures because he was a "non-candidate," having withdrawn his certificates of candidacy three days after its filing. Petitioner posits that "it is . . . clear from the law that candidate must have entered the political contest, and should have either won or lost".

Hence, this petition for certiorari.

ISSUE

Whether or not the petitioner be held liable.

RULING

Yes, he is liable.

Under the rule that where the law does not distinguish, courts should not distinguish, Ubi lex non distinguit nec nos distinguere debemos. No distinction is to be made in the application of a law where none is indicated.

In this case, SC dismissed the petition. Section 14 of R.A. No. 7166 states that "every candidate" has the obligation to file his statement of contributions and expenditures. As the law makes no distinction or qualification as to whether the candidate pursued his candidacy or withdrew the same, the term "every candidate" must be deemed to refer not only to a candidate who pursued his campaign, but also to one who withdrew his candidacy. Furthermore, Section 14 of the law uses the word "shall." As a general rule, the use of the word "shall" in a statute implies that the statute is mandatory, and imposes a duty which may be enforced, particularly if public policy is in favor of this meaning or where public interest is involved.

 

Case Digest: Philippine British Assurance Co., Inc. vs IAC et.al., G.R. No. 72005


Philippine British Assurance Co., Inc. vs IAC et.al., G.R. No. 72005, May 29, 1987

Subject: Statutory Construction


FACTS

This is a Petition for Review on certiorari of the Resolution dated September 12, 1985, of the Intermediate Appellate Court in AC-G.R. No. CR-05409 granting private respondent's motion for execution pending appeal and ordering the issuance of the corresponding writ of execution on the counterbond to lift attachment filed by petitioner.

The records disclose that private respondent Sycwin Coating & Wires, Inc., filed a complaint for collection of a sum of money against Varian Industrial Corporation before the Regional Trial Court of Quezon City. During the pendency of the suit, private respondent succeeded in attaching some of the properties of Varian Industrial Corporation upon the posting of a supersedeas bond. The latter in turn posted a counterbond in the sum of P1,400, 000.00 thru petitioner Philippine British Assurance Co., Inc., so the attached properties were released.

Varian Industrial Corporation appealed the decision to the respondent Court. Sycwin then filed a petition for execution pending appeal against the properties of Varian in respondent Court. Varian was required to file its comment, but none was filed. In the Resolution of July 5, 1985, respondent Court ordered the execution pending appeal as prayed for. However, the writ of execution was returned unsatisfied as Varian failed to deliver the previously attached personal properties upon demand. In a Petition dated August 13, 1985, filed with respondent Court Sycwin prayed that the surety (herein petitioner) be ordered to pay the value of its bond. In compliance with the Resolution of August 23, 1985, of the respondent Court herein petitioner filed its comment. In the Resolution of September 12, 1985, the respondent Court granted the petition. Hence this action.

ISSUE

Whether or not an order of execution pending appeal of a judgment maybe enforced on the said bond.

RULING

No, an order of execution pending appeal of a judgment cannot be enforced on the said bond.

It is well recognized rule that where the law does not distinguish, courts should not distinguish. Ubi lex non distinguish nec nos distinguere debemos." The rule, founded on logic, is a corollary of the principle that general words and phrases in a statute should ordinarily be accorded their natural and general significance. The rule requires that a general term or phrase should not be reduced into parts and one part distinguished from the other so as to justify its exclusion from the operation of the law. In other words, there should be no distinction in the application of a statute where none is indicated. For courts are not authorized to distinguish where the law makes no distinction. They should instead administer the law not as they think it ought to be but as they find it and without regard to consequences.

In this case, the counterbond was issued in accordance with the provisions of Section 5, Rule 57 of the Rules of Court as provided in the second paragraph a forecited which is deemed reproduced as part of the counterbond. In the third paragraph it is also stipulated that the counterbond is to be "applied for the payment of the judgment." Neither the rules nor the provisions of the counterbond limited its application to a final and executory judgment. Indeed, it is specified that it applies to the payment of any judgment that maybe recovered by plaintiff. Thus, the only logical conclusion is that an execution of any judgment including one pending appeal if returned unsatisfied maybe charged against such a counterbond. The rule, therefore, is that the counterbond to lift attachment that is issued in accordance with the provisions of Section 5, Rule 57, of the Rules of Court, shall be charged with the payment of any judgment that is returned unsatisfied. It covers not only a final and executory judgement but also the execution of a judgment pending appeal.


Thursday, July 27, 2023

Case Digest: Rillaroza, et. al vs Eastern Telecom, G.R. No. 104600


Rillaroza, et. al vs Eastern Telecom, GR No. 104600, July 2, 1999

Subject: Basic Legal Ethics


FACTS

A group of lawyers, led by Atty. Francisco D. Rilloraza, who were hired by Eastern Telecommunications Philippines, Inc. (ETPI) to represent it in a case against Philippine Long Distance Telephone Company (PLDT). The lawyers filed a complaint with the Regional Trial Court of Makati City, seeking P26,350,779.91 in attorney's fees.

ETPI argued that the lawyers were not entitled to any attorney's fees because there was no written agreement between the parties. The company also argued that the amount of attorney's fees was excessive.

The trial court ruled in favor of the lawyers, awarding them P10,000,000 in attorney's fees. ETPI appealed the decision to the Court of Appeals, which affirmed the decision of the trial court.

ETPI then appealed the decision to the Supreme Court.

ISSUE

Whether or not lawyers are entitled to compensation even in the absence of written agreements between and among the parties.

RULING

Yes.

Under Rule 20.01v of the Canons of Professional Responsibility which provides that, a lawyer shall be guided by the following factors in determining his fees: (a) the time spent and the extent of the service rendered or required; (b) the novelty and difficulty of the questions involved; (c) The importance of the subject matter; (d) The skill demanded; (e) The probability of losing other employment as a result of acceptance of the proffered case; (f) The customary charges for similar services and the schedule of fees of the IBP chapter to which he belongs; (g) The amount involved in the controversy and the benefits resulting to the client from the service; (h) The contingency or certainty of compensation; (i) The character of the employment, whether occasional or established; and (j) The professional standing of the lawyer.

In this case, the Court held that lawyers are entitled to reasonable compensation for their services, even if there is no written agreement between the lawyer and the client. The Court also held that the amount of attorney's fees awarded by the trial court was reasonable.

Hence, that lawyers are entitled to reasonable compensation for their services, even if there is no written agreement between the lawyer and the client.

Case Digest: Dimarucot vs People G.R. No. 183975


Dimarucot vs People G.R. No. 183975, September 20, 2010

Subject: Basic Legal Ethics


FACTS

Petitioner is the accused in Criminal Case No. 98-M-98 for Frustrated Murder in the Regional Trial Court (RTC) of Malolos, Bulacan, under the following Information:

That on or about the 18th day of August, 1997, in the municipality of Malolos, province of Bulacan, Philippines, and within the jurisdiction of this Honorable Court, the above-named accused, armed with an iron pipe and with intent to kill one Angelito Rosini y Go, did then and there wilfully, unlawfully and feloniously, with treachery and evident premeditation, attack, assault and hit with the said iron pipe the said Angelito Rosini y Go, hitting him on his head, thereby inflicting upon him physical injuries, which ordinarily would have caused the death of the said Angelito Rosini y Go, thus performing all acts of execution which should have produced the crime of murder as a consequence, but nevertheless did not produce it by reason of causes independent of his will, that is, by the timely and able medical assistance rendered to the said Angelito Rosini y Go which prevented his death.

After trial, on September 11, 2006, the RTC promulgated its Decision convicting petitioner of frustrated homicide, and sentencing him as follows:

WHEREFORE, finding accused GREGORIO aka GEORGE DIMARUCOT y GARCIA liable of (sic) the lesser offense of Frustrated Homicide, this Court hereby sentences him to an indeterminate penalty of four (4) years and two (2) months and one (1) day, as minimum, to eight (8) years and one (1) day, as maximum, of imprisonment.

Petitioner filed a motion for reconsideration,8 his counsel admitting that he was at fault in failing to file the appellant’s brief due to "personal problems emanating from his [counsel’s] wife’s recent surgical operation." It was thus prayed that the CA allow petitioner to file his appellant’s brief which counsel undertook to submit within seven (7) days or until October 4, 2007. By Resolution9 dated November 27, 2007, the CA, finding the allegations of petitioner unpersuasive and considering that the intended appellant’s brief was not at all filed on October 4, 2007, denied the motion for reconsideration. As per Entry of Judgment, the Resolution of August 29, 2007 became final and executory on January 4, 2008.10

On May 8, 2008, petitioner filed an Omnibus Motion (1) To Reconsider August 29, 2007 Resolution, (2) To Expunge The Same From Book Of Entries Of Judgment, and (3) To Give Accused-Appellant A Final Period Of Thirty Days To File Appellant’s Brief. Petitioner reiterated that his failure to file the appeal brief was solely the fault of his lawyer who is reportedly suffering from personal problems and depression. He also cited his advanced age (he will turn 76 on May 30, 2008) and medical condition (hypertension with cardiovascular disease and pulmonary emphysema), attaching copies of his birth certificate, medical certificate and certifications from the barangay and church minister.11

In the assailed Resolution dated July 23, 2008, the CA denied the omnibus motion holding that petitioner is bound by the mistakes and negligence of his counsel, such personal problems of a counsel emanating from his wife’s surgical operation are not considered mistake and/or negligence contemplated under the law as to warrant reconsideration of the dismissal of petitioner’s appeal for failure to file appellant’s brief. Thus, when appellant did not file a petition before this Court to assail the validity of the August 29, 2007 and November 27, 2007 resolutions, the August 29, 2007 resolution attained finality and entry of judgment thereof is in order.12

ISSUE

Whether or not Dimarucot’s counsel acted negligently.

RULING

Yes.

Under the code of professional responsibility, A LAWYER SHALL SERVE HIS CLIENT WITH COMPETENCE AND DILIGENCE.

Petitioner cannot simply harp on the mistakes and negligence of his lawyer allegedly beset with personal problems and emotional depression. The negligence and mistakes of counsel are binding on the client.18 There are exceptions to this rule, such as when the reckless or gross negligence of counsel deprives the client of due process of law, or when the application of the general rule results in the outright deprivation of one’s property or liberty through a technicality. However, in this case, we find no reason to exempt petitioner from the general rule.19 The admitted inability of his counsel to attend fully and ably to the prosecution of his appeal and other sorts of excuses should have prompted petitioner to be more vigilant in protecting his rights and replace said counsel with a more competent lawyer. Instead, petitioner continued to allow his counsel to represent him on appeal and even up to this Court, apparently in the hope of moving this Court with a fervent plea for relaxation of the rules for reason of petitioner’s age and medical condition. Verily, diligence is required not only from lawyers but also from their clients.

Negligence of counsel is not a defense for the failure to file the appellant’s brief within the reglementary period. The right to appeal is not a natural right and is not part of due process. It is merely a statutory privilege and may be exercised only in accordance with the law. The party who seeks to avail of the same must comply with the requirements of the Rules. Failing to do so, the right to appeal is lost.

Case Digest: US vs Ballena, G.R. No. L-6294


US vs Ballena, G.R. No. L-6294, February 10, 1911

Subject: Basic Legal Ethics


FACTS

Leoncio Ballena, a provincial fiscal in Masbate, was charged with crime of subordination of perjury. The case stemmed from the testimony of Ana Ramirez, who was called as a witness in a homicide case against Ciriaco Pellejera. Ramirez testified that her husband died of fever and that she observed no contusions or other injuries on his body. However, it was later revealed that Ramirez had previously testified under oath that her husband had been beaten to death by Pellejera.

In the trial of perjury case against Ana, Estefania Barruga, mother of the defendant Ana, was a witness for the defendant, and at the instigation of one Leoncio Ballena she testified that the fiscal, SeƱor Bailon, at the time he was in Dimasalang making the investigation into the cause of the death of Ana's husband, attempted to rape her daughter Ana, and asked for the hand of the girl in marriage, but she did not desire to accept this proposition of the fiscal because he was a married man.

From there, the fiscal filed an information in the CFI of Masbate against the said Leoncio Ballena, charging him with the crime of subornation of perjury. After trial, the defendant was found guilty.  From this judgment, the defendant appealed and insists that the testimony by given by Estefania Barruga in that perjury case was immaterial to the issues involved therein. If this contention be true, the defendant is not guilty.

ISSUE

Whether or not the testimony of Barruga material to the issues involved in that criminal case against her daughter for perjury.

RULING

Yes, it is material.

Under the law, the crime of perjury is committed by any person who shall knowingly make untruthful statements or make an affidavit, upon any material matter and required by law.

In this case, the defendant strongly insisted that witness Barruga testifying that the fiscal committed those acts would be the only way to save her daughter from imprisonment. Materiality is an essential element in the crime of perjury. It, therefore, necessarily follows that materiality is likewise an indispensable requisite in the crime of subornation of perjury, as the latter is derived from the former. Looking into materiality of the testimonies made by the witnesses and circumstances surrounding the criminal case against Pellejera, the perjury case against Ana, and the current subordination case against Ballena, SC held that defendant Ballena, not only knowingly and willfully induced this witness to swear falsely, but he did so maliciously, as it appears from the record that he was an enemy of the fiscal at that time, the fiscal having prosecuted him previous to this trial. Hence, SC affirmed Ballena's conviction of subordination of perjury.

Case Digest: People vs Manigbas, 109 Phil 469(1960), G.R. Nos. L-10352-53


People vs Manigbas, 109 Phil 469(1960), G.R. Nos. L-10352-53, September 30, 1960

Subject: Basic Legal Ethics


FACTS

On July 9, 1954, Manigbas and his men gathered at the house of Catalino Ramos in barrio Macalamcam, Rosario. Manigbas told his men that Esteban de Guzman, the Chief of Police of Rosario, must be killed because he was responsible for the conviction and sentence to double life imprisonment of their "boss" Isaac Farol. Manigbas then called for volunteers who would be the trigger men.

Marcial Macalintal, Lope de Torres, and Amado Ramos responded and volunteered to perform the job. With the exception of Miguel Almario and Catalino Ramos, who remained behind, Manigbas and his men (composed of Tomas Carandang, Iluminado Landicho, Isabelo Egar, Alejandro ZuƱo, Ben Mercado, Melecio Sison, Eugenio Mendoza alias Eugenio Hernandez, and Eliseo Carandang) went to the house of Esteban de Guzman and shot him dead.

The men were arrested and charged with murder. They all pleaded not guilty. At trial, the prosecution presented the testimony of Tomas Carandang, who had been a member of Manigbas's commando unit. Carandang testified that he had witnessed the planning and execution of the murder of Esteban de Guzman. The defense argued that Carandang's testimony was unreliable because he had been promised leniency in exchange for his testimony. The defense also argued that the prosecution had not presented any physical evidence linking the men to the crime. The trial court found the men guilty of murder and sentenced them to death. The men appealed their convictions to the Supreme Court.

ISSUE

Whether or not the confessions of Eliseo Carandang, Eugenio Mendoza, Modesto Leviste, and Isabelo Egar were admissible in evidence. 

RULING

No. The accused argued that the confessions were inadmissible because they were obtained through coercion. They argued that the accused were threatened with physical harm and that they were promised leniency if they confessed.

The prosecution argued that the confessions were voluntary. They argued that the accused were not threatened or promised anything in exchange for their confessions. The Supreme Court held that the confessions were admissible in evidence. The Court found that there was no evidence that the accused were coerced into confessing. The Court also found that the accused were not promised anything in exchange for their confessions.

In this case, the Supreme Court's decision has been criticized by some legal scholars. Some scholars have argued that the Court's decision makes it too easy for the prosecution to obtain confessions from suspects.

Case Digest: In Re Montague &Dominguez, # Phil 577 (1904), G.R. No. 1107

In Re Montague &Dominguez, G.R. No. 1107, April 2, 1904

Subject: Basic Legal Ethics

FACTS

On or about the 15th day of November, 1902, the Attorney-General of the Philippine Islands presented to the Supreme Court of said Islands a petition, and on or about January 15, 1903, a supplemental petition, alleging that Augustus A. Montagne and Frank E. Dominguez were practicing attorneys at law in the courts of said Islands, and were members of the firm of lawyers known as Montagne & Dominguez; and in said petition and supplemental petition the said Attorney-General charged said lawyers and said firm with having violated their oaths of office as attorneys at law and with failure to faithfully perform the duties of their office as such attorneys toward their clients.

This evidence is so voluminous that nothing more can be incorporated in the space given us to this opinion than a brief reference to it, and even that reference is to be confined to the facts of four of the most serious of the charges against the respondents, viz, the "Balmori" charge, the hacienda "Esperanza" charge, the "Cordona" charge, and the "Sarmiento" charge. These charges, and a brief statement of the evidence to sustain them, are as follows:

1) That the respondents accepted employment in February 1902, to represent one Felix Balmori in a criminal case, on appeal to the Supreme Court, receiving a retainer in said case; and that after entering upon such employment and accepting a fee pursuant thereto, they abandoned and deserted their said client’s case, to his great prejudice;

2) That they entered into a contract of employment with thousands of Filipinos in the Province of Pangasinan, in December, 1901, to represent said inhabitants in a suit or suits involving the title and possession to a large tract of land, and, after accepting retainers from their said clients, and rendering certain professional services in connection with such suits, they deserted and abandoned their clients' cases at a critical time, in violation of their contract, and to the great injury of such clients;

3) That they were retained in October 1901, to defend one Juan Cardona, who was then held as a prisoner on a criminal charge in the Province of Tarlac. The accused received from Cardona a retainer in his case and afterwards deserted him and failed to appear for him in court when his case was called for trial;

4) That they undertook, in November, 1901, the defense of one Ramon Sarmiento, who was charged with the crimes of estafa and falsification, and who was imprisoned on those charges in Manila; that though they were paid 500 pesos for their services, they subsequently, on an order of the court, obtained possession of 300 pesos which had been deposited in court as the money of said Sarmiento, and retained said sum of 300 pesos and appropriated it to their own use and benefit, against the instructions of their said client and to his injury;

5) That in seven other cases, called the " Cuyapo " case, the " Pearsons " case, the " Dorr " case, the " Gleason " case, the " Finnick " case, the " Quiao " case, and the " Mauline " case, the accused, as such attorneys, at various times mentioned in said petitions, after being employed and retained by clients, and after, receiving fees from their clients, abandoned their cases, and failed and neglected to render such faithful services for said clients as the law required.

ISSUE

Whether or not respondents should be disbarred. 

RULING

SC held that there should be added to these latter five charges those against the respondents in the " Pearson " case and in the " Mauline " case, thus making in all seven charges, no one of which is sufficient to warrant suspension or disbarment, and these seven charges are therefore dismissed.

Articles 356 and 357 of the Penal Code provide, in effect, for the punishment by a fine of an attorney who maliciously abuses his profession, or by inexcusable ignorance or negligence prejudices his client; and provide for punishment by-fine and suspension, in case an attorney having been retained to defend the cause of one party, subsequently without his consent, defends the opposite side in the same action.

Section 21 of the Code of Civil Procedure provides that a member of the bar may be removed or suspended from his office as lawyer, by the Supreme Court, for any deceit, malpractice, or other gross misconduct in such office, or by reason of his conviction of a crime involving moral turpitude, or for violation of the oaths prescribed in section 18, or for the willful disobedience of any lawful order of the Supreme Court or Courts of First Instance, or for corruptly or willfully appearing as a lawyer for a party, to an action or proceeding without authority so to do.

It will be noticed that under article 356 of the Penal Code the penalty for a violation of that article is a fine only; and, under article 357, a fine and suspension may be imposed only for one cause, viz, when an attorney is retained by one party and subsequently, and without the consent of that party, defends the opposite side in the same action.

In re Percy (36 N. Y., 651) the court went so far as to hold that inasmuch as the right to admission to practice law depended on good moral character, joined with requisite learning, this character should be preserved after admission; and that where the acts of an attorney were such as to destroy his credibility and character, the court had authority to disbar him.

Inasmuch as in the case at bar the charges and proofs do not show that the practices of the respondents constituted the gravest offends, we are inclined to take a lenient view of the charges. While we can not excuse the respondents, yet we are of opinion that total disbarment would be too severe a penalty for their acts.

The court, therefore, is of opinion that the respondents, Augustus A. Montagne and Frank E. Dominguez, should be suspended from the practice of their profession as lawyers in these Islands for a term of one year.

Case Digest: US vs Laranja, 21 Phil 500, G.R. No. 6789

US vs Laranja, 21 Phil 500 (1912), G.R. No. 6789, February 16, 1912

Subject: Basic Legal Ethics

FACTS

Laranja and four or five companions went to the house of one Candoy on the night of November 1910. These men arrived at the house on the night and together with the people living in said house, began singing and drinking. A quarrel and fight ensued which resulted in the death of Candoy and Ando. Criminal complaints were filed before the CFI against this appellants and a certain Iyon, charged them with the crime of homicide. The latter was tried first. When the case against the appellant was called, an agreement with reference to admitting the testimony taken in the case against Iyon was entered into by counsel for the defendant and the provincial fiscal.

Attorney Lozano’s position in assisting the prosecution in the case against Iyon was that of showing that Iyon was the guilty party and that the killing of Ando was not justifiable. In defending Calixto, it was the duty of attorney, to show, if it could be done, that Candoy was the aggressor and not Calixto. The testimony which was used to convict Iyon was incorporated by stipulation of the parties bodily into the case against this appellant.

ISSUE

Whether or not Attorney de officio, Mr. Lozano was disqualified from representing the appellant in the trial court.

RULING

No.

Court ruled that “It is said the counsel for respondent was counsel assigned to him by the court and may not have been counsel of his choice. We do not know how the fact was, but we know it is customary to allow the respondent to choose for himself. But however that may be, the counsel acted for the respondent without objection, and without complaint that he did not do the best he could for him”.

In this case, the record in the Iyon case was admitted as evidence on the express stipulation of the parties. The court below had no discretion. To hold that that evidence was inadmissible puts the trial court in the position described by Judge Cooley in the quotation above. If the court admitted the evidence it was subject, according to the theory of counsel for the appellant, to be charged with violating the defendant’s constitutional right to be confronted with the witnesses against him and of admitting incompetent evidence. If the court had excluded such evidence, the defendant would have been entitled to have the conviction set aside for error involved in excluding from the case evidence whose admissibility was agreed upon by all, and which the defendant himself, through his counsel, expressly asked to have admitted as essential to his proper defense. In other words, the court would be reversed if it did and reversed if it did not.

Case Digest: Cobb-Perez vs Lantin, 24 SCR 291(1968)


Cobb-Perez vs Lantin, 24 SCR 291(1968)

Subject: Basic Legal Ethics


FACTS

The case involved a judgment creditor, Ricardo Hermoso, who obtained a final and executory judgment against Damaso Perez for the sum of P10,000. Hermoso then filed a motion for the issuance of a writ of execution against the conjugal assets of Damaso and his wife, Mercedes Ruth Cobb-Perez.

The trial court granted the motion and issued a writ of execution against the conjugal assets. Cobb-Perez filed a motion to quash the writ of execution, arguing that the conjugal assets are not liable for the personal debt of Damaso. The counsels of the petitioner have repeatedly caused the delay of the simple execution of sum of money and have availed themselves of suggested remedies available to them.

ISSUE

Whether or not the counsels of the petitioner have caused delay in the execution of the order by the court.

RULING

No.

Under Canon 12.04 of the Canons of Professional Responsibility, a lawyer shall not unduly delay a case, impede the execution of a judgment or misuse Court processes.

In this case, from the chronology of antecedent events, the fact becomes inescapable that the Perez spouses, coached by their counsels, had sallied forth on a stratagem of "remedies" projected to foil the lawful execution of a simple money judgment. It is equally obvious that they foreshadowed their own reversals in the "remedies" they ventured to adopt, such that even before, one remedy had been exhausted, they interposed another until the case reached this Court for the second time. 3 Meanwhile, justice was delayed, and more than one member of this Court are persuaded that justice was practically waylaid. Hence, the counsels of the petitioners are guilty of delaying the execution of justice.

Case Digest: Tan Tek Beng vs David, 126 SCRA 389(1983)


Tan Tek Beng vs David, 126 SCRA 389(1983)

Subject: Basic Legal Ethics


FACTS

Tan Tek Beng, a non-lawyer, has had an agreement with Timoteo David, a lawyer, as documented by a letter made by David with terms and condition that reads: (1) All commission/Attorney’s fees fom the clients supplied by Tan will be divided 50-50 between them; (2) David will not deal directly with their clients without Tan’s consent; (3) Tan will be collecting and keeping the said fees/advances; and, (4) Other clients who are related to Tan and are contacted through him will be his clients.

This agreement was agreed by the parties but their business relationship did not last due to accusation and double-cross. Because of the allege breach of agreement Tan accused David to Pres. Asst. Zamora, Office of Civil Relations and to Supreme Court. This case was sent to Solicitor General for investigation, report and recommendation.

ISSUE

Whether or not a disciplinary action should be taken against David.

RULING

Yes.

Under the canons of professional ethics adopted by the American Bar Association, Division of Fees - No division of fees for legal services is proper, except with another lawyer, based upon a division of service or responsibility; Intermediaries - The professional services of a lawyer should not be controlled or exploited by any law agency, personal or corporate, which intervenes between client and lawyer. A lawyer’s responsibilities and qualifications are individual. He should avoid all relations which direct the performance of his duties by or in the interest of such intermediary. A lawyer’s relation to his client should be personal, and the responsibility should be direct to the client; Compensation, Commissions and Rebates. — A lawyer should accept no compensation, commissions, rebates or other advantages from others without the knowledge and consent of his client after full disclosure." (Appendix, Malcolm, Legal Ethics).

Where in the agreement lawyer David not only agreed to give one-half of his professional fees to an intermediary or commission agent but he also bound himself not to deal directly with the clients, the Court held that the said agreement is void because it was tantamount to malpractice which is "the practice of soliciting cases at law for the purpose of gain, either personally or through paid agents or brokers" (Sec. 27, Rule 138, Rules of Court). Malpractice ordinarily refers to any malfeasance or dereliction of duty committed by a lawyer. Section 27 gives a special and technical meaning to the term "malpractice" (Act No. 2828, amending Sec. 21 of Act No. 190). That meaning is in consonance with the elementary notion that the practice of law is a profession, not a business. "The lawyer may not seek or obtain employment by himself or through others for to do so would be unprofessional" (2 R.C.L. 1097 cited in In re Tagorda, 33 Phil. 37, 42).

The commercialization of law practice is condemned in certain canons of professional ethics adopted by the American Bar Association. "Unprofessional conduct in an attorney is that which violates the rules or ethical code of his profession or which is unbecoming a member of that profession" (Note 14, 7 C.J.S. 743). We censure lawyer David for having entered and acted upon such void and unethical agreement. We discountenance his conduct, not because of the complaint of Tan Tek Beng (who did not know legal ethics) but because David should have known better.

Case Digest: General Santos Coca-Cola Plant Free Workers Union – TUPAS vs Coca-Cola Bottlers Philippines., Inc., CA and NLRC, G.R. No. 178647

  General Santos Coca-Cola Plant Free Workers Union – TUPAS vs Coca-Cola Bottlers Philippines., Inc., CA and NLRC,  G.R. No. 178647,  Februa...