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It is well-settled that when the words of a contract are plain and readily understood, there is no room for construction.

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GAISANO CAGAYAN, INC. vs. INSURANCE COMPANY OF NORTH AMERICA, G.R. No. 147839, June 8, 2006.


“x x x.

At issue is the proper interpretation of the questioned insurance policy. Petitioner claims that the CA erred in construing a fire insurance policy on book debts as one covering the unpaid accounts of IMC and LSPI since such insurance applies to loss of the ready-made clothing materials sold and delivered to petitioner.

The Court disagrees with petitioner's stand.

It is well-settled that when the words of a contract are plain and readily understood, there is no room for construction.22 In this case, the questioned insurance policies provide coverage for "book debts in connection with ready-made clothing materials which have been sold or delivered to various customers and dealers of the Insured anywhere in the Philippines."23 ; and defined book debts as the "unpaid account still appearing in the Book of Account of the Insured 45 days after the time of the loss covered under this Policy."24 Nowhere is it provided in the questioned insurance policies that the subject of the insurance is the goods sold and delivered to the customers and dealers of the insured.

Indeed, when the terms of the agreement are clear and explicit that they do not justify an attempt to read into it any alleged intention of the parties, the terms are to be understood literally just as they appear on the face of the contract.25 Thus, what were insured against were the accounts of IMC and LSPI with petitioner which remained unpaid 45 days after the loss through fire, and not the loss or destruction of the goods delivered.

X x x.”

See:

22 De Mesa v. Court of Appeals, 375 Phil. 432, 443 (1999).

25 First Fil-Sin Lending Corporation v. Padillo, G.R. No. 160533, January






Jurisprudence has recognized several exceptions in which factual issues may be resolved by Supreme Court

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GAISANO CAGAYAN, INC. vs. INSURANCE COMPANY OF NORTH AMERICA, G.R. No. 147839, June 8, 2006. 



“x x x.

As a general rule, in petitions for review, the jurisdiction of this Court in cases brought before it from the CA is limited to reviewing questions of law which involves no examination of the probative value of the evidence presented by the litigants or any of them.18 The Supreme Court is not a trier of facts; it is not its function to analyze or weigh evidence all over again.19 Accordingly, findings of fact of the appellate court are generally conclusive on the Supreme Court.20

Nevertheless, jurisprudence has recognized several exceptions in which factual issues may be resolved by this Court, such as: (1) when the findings are grounded entirely on speculation, surmises or conjectures; (2) when the inference made is manifestly mistaken, absurd or impossible; (3) when there is grave abuse of discretion; (4) when the judgment is based on a misapprehension of facts; (5) when the findings of facts are conflicting; (6) when in making its findings the CA went beyond the issues of the case, or its findings are contrary to the admissions of both the appellant and the appellee; (7) when the findings are contrary to the trial court; (8) when the findings are conclusions without citation of specific evidence on which they are based; (9) when the facts set forth in the petition as well as in the petitioner's main and reply briefs are not disputed by the respondent; (10) when the findings of fact are premised on the supposed absence of evidence and contradicted by the evidence on record; and (11) when the CA manifestly overlooked certain relevant facts not disputed by the parties, which, if properly considered, would justify a different conclusion.21 Exceptions (4), (5), (7), and (11) apply to the present petition.

X x x.”

See:

16 Art. 1265. Whenever the thing is lost in the possession of the debtor, it shall be presumed that the loss was due to his fault, unless there is proof to the contrary, and without prejudice to the provisions of Article 1165. This presumption does not apply in case of earthquake, flood, storm, or other natural calamity.

18Spouses Hanopol v. Shoemart, Incorporated, 439 Phil. 266, 277 (2002); St. Michael's Institute v. Santos, 422 Phil. 723, 737 (2001).

19 Go v. Court of Appeals, G.R. No. 158922, May 28, 2004, 430 SCRA 358, 364; Spouses Hanopol v. Shoemart, Incorporated, supra.

20 Custodio v. Corrado, G.R. No. 146082, July 30, 2004, 435 SCRA 500, 511; Spouses Hanopol v. Shoemart, Incorporated, supra.

21 The Insular Life Assurance Company, Ltd. v. Court of Appeals, G.R. No. 126850, April 28, 2004, 428 SCRA 79, 86; Aguirre v. Court of Appeals, G.R. No. 122249, January 29, 2004, 421 SCRA 310, 319.


Sale; loss of goods sold; who is liable.

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GAISANO CAGAYAN, INC. vs. INSURANCE COMPANY OF NORTH AMERICA, G.R. No. 147839, June 8, 2006. 



“x x x.

Petitioner argues that IMC bears the risk of loss because it expressly reserved ownership of the goods by stipulating in the sales invoices that "[i]t is further agreed that merely for purpose of securing the payment of the purchase price the above described merchandise remains the property of the vendor until the purchase price thereof is fully paid."26

The Court is not persuaded.

The present case clearly falls under paragraph (1), Article 1504 of the Civil Code:

ART. 1504. Unless otherwise agreed, the goods remain at the seller's risk until the ownership therein is transferred to the buyer, but when the ownership therein is transferred to the buyer the goods are at the buyer's risk whether actual delivery has been made or not, except that:

(1) Where delivery of the goods has been made to the buyer or to a bailee for the buyer, in pursuance of the contract and the ownership in the goods has been retained by the seller merely to secure performance by the buyer of his obligations under the contract, the goods are at the buyer's risk from the time of such delivery; (Emphasis supplied)

x x x x

Thus, when the seller retains ownership only to insure that the buyer will pay its debt, the risk of loss is borne by the buyer.27 Accordingly, petitioner bears the risk of loss of the goods delivered.

IMC and LSPI did not lose complete interest over the goods. They have an insurable interest until full payment of the value of the delivered goods. Unlike the civil law concept of res perit domino, where ownership is the basis for consideration of who bears the risk of loss, in property insurance, one's interest is not determined by concept of title, but whether insured has substantial economic interest in the property.28

X x x.”



See:

27 See Lawyers Cooperative Publishing Co. v. Tabora, 121 Phil. 737, 741 (1965).

28 Aetna Ins. Co. v. King, 265 So 2d 716, cited in 43 Am Jur 2d §943.





Insurable interest

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GAISANO CAGAYAN, INC. vs. INSURANCE COMPANY OF NORTH AMERICA, G.R. No. 147839, June 8, 2006.


“x x x.

Section 13 of our Insurance Code defines insurable interest as "every interest in property, whether real or personal, or any relation thereto, or liability in respect thereof, of such nature that a contemplated peril might directly damnify the insured." Parenthetically, under Section 14 of the same Code, an insurable interest in property may consist in: (a) an existing interest; (b) an inchoate interest founded on existing interest; or (c) an expectancy, coupled with an existing interest in that out of which the expectancy arises.

Therefore, an insurable interest in property does not necessarily imply a property interest in, or a lien upon, or possession of, the subject matter of the insurance, and neither the title nor a beneficial interest is requisite to the existence of such an interest, it is sufficient that the insured is so situated with reference to the property that he would be liable to loss should it be injured or destroyed by the peril against which it is insured.29 Anyone has an insurable interest in property who derives a benefit from its existence or would suffer loss from its destruction.30Indeed, a vendor or seller retains an insurable interest in the property sold so long as he has any interest therein, in other words, so long as he would suffer by its destruction, as where he has a vendor's lien.31 In this case, the insurable interest of IMC and LSPI pertain to the unpaid accounts appearing in their Books of Account 45 days after the time of the loss covered by the policies.

X x x.”

See:
29 43 Am Jur 2d §943.

30 Id.

31 43 Am Jur 2d §962.



Where the obligation consists in the payment of money, the failure of the debtor to make the payment even by reason of a fortuitous event shall not relieve him of his liability

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GAISANO CAGAYAN, INC. vs. INSURANCE COMPANY OF NORTH AMERICA, G.R. No. 147839, June 8, 2006.


“x x x.

The next question is: Is petitioner liable for the unpaid accounts?

Petitioner's argument that it is not liable because the fire is a fortuitous event under Article 117432 of the Civil Code is misplaced. As held earlier, petitioner bears the loss under Article 1504 (1) of the Civil Code.

Moreover, it must be stressed that the insurance in this case is not for loss of goods by fire but for petitioner's accounts with IMC and LSPI that remained unpaid 45 days after the fire. Accordingly, petitioner's obligation is for the payment of money. As correctly stated by the CA, where the obligation consists in the payment of money, the failure of the debtor to make the payment even by reason of a fortuitous event shall not relieve him of his liability.33 The rationale for this is that the rule that an obligor should be held exempt from liability when the loss occurs thru a fortuitous event only holds true when the obligation consists in the delivery of a determinate thing and there is no stipulation holding him liable even in case of fortuitous event. It does not apply when the obligation is pecuniary in nature.34

Under Article 1263 of the Civil Code, "[i]n an obligation to deliver a generic thing, the loss or destruction of anything of the same kind does not extinguish the obligation." If the obligation is generic in the sense that the object thereof is designated merely by its class or genus without any particular designation or physical segregation from all others of the same class, the loss or destruction of anything of the same kind even without the debtor's fault and before he has incurred in delay will not have the effect of extinguishing the obligation.35 This rule is based on the principle that the genus of a thing can never perish. Genus nunquan perit.36 An obligation to pay money is generic; therefore, it is not excused by fortuitous loss of any specific property of the debtor.37

Thus, whether fire is a fortuitous event or petitioner was negligent are matters immaterial to this case. What is relevant here is whether it has been established that petitioner has outstanding accounts with IMC and LSPI.

X x x.”



See:

32 Art. 1174. Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which, though foreseen were inevitable.

34 Lawyers Cooperative Publishing v. Tabora, supra note 27, at 741.

35 Jurado, Comments and Jurisprudence on Obligations and Contracts (1993), pp. 289-290. See also Republic of the Philippines v. Grijaldo, 122 Phil. 1060, 1066 (1965); De Leon v. Soriano, 87 Phil. 193, 196 (1950).

36 Bunge Corp. and Universal Comm. Agencies v. Elena Camenforte & Company, 91 Phil. 861, 865 (1952). See also Republic of the Philippines v. Grijaldo, supra; De Leon v. Soriano, supra.

37 Ramirez v. Court of Appeals, 98 Phil. 225, 228 (1956).





The right of subrogation accrues simply upon payment by the insurance company of the insurance claim.

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GAISANO CAGAYAN, INC. vs. INSURANCE COMPANY OF NORTH AMERICA, G.R. No. 147839, June 8, 2006. 



“x x x.

With respect to IMC, the respondent has adequately established its claim. Exhibits "C" to "C-22"38 show that petitioner has an outstanding account with IMC in the amount of P2,119,205.00. Exhibit "E"39 is the check voucher evidencing payment to IMC. Exhibit "F"40 is the subrogation receipt executed by IMC in favor of respondent upon receipt of the insurance proceeds. All these documents have been properly identified, presented and marked as exhibits in court. The subrogation receipt, by itself, is sufficient to establish not only the relationship of respondent as insurer and IMC as the insured, but also the amount paid to settle the insurance claim. The right of subrogation accrues simply upon payment by the insurance company of the insurance claim.41 Respondent's action against petitioner is squarely sanctioned by Article 2207 of the Civil Code which provides:

Art. 2207. If the plaintiff's property has been insured, and he has received indemnity from the insurance company for the injury or loss arising out of the wrong or breach of contract complained of, the insurance company shall be subrogated to the rights of the insured against the wrongdoer or the person who has violated the contract. x x x

Petitioner failed to refute respondent's evidence.

As to LSPI, respondent failed to present sufficient evidence to prove its cause of action. No evidentiary weight can be given to Exhibit "F Levi Strauss",42 a letter dated April 23, 1991 from petitioner's General Manager, Stephen S. Gaisano, Jr., since it is not an admission of petitioner's unpaid account with LSPI. It only confirms the loss of Levi's products in the amount of P535,613.00 in the fire that razed petitioner's building on February 25, 1991.

Moreover, there is no proof of full settlement of the insurance claim of LSPI; no subrogation receipt was offered in evidence. Thus, there is no evidence that respondent has been subrogated to any right which LSPI may have against petitioner. Failure to substantiate the claim of subrogation is fatal to petitioner's case for recovery of the amount of P535,613.00.

X x x.”



See:

41 Delsan Transport Lines, Inc. v. Court of Appeals, 420 Phil. 824, 834 (2001); Philippine American General Insurance Company, Inc. v. Court of Appeals, 339 Phil. 455, 466 (1997).



Republic Act No. 10609 - “Protection of Students’ Right to Enroll in Review Centers Act of 2013”- Official Gazette of the Republic of the Philippines

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See - Republic Act No. 10609 | Official Gazette of the Republic of the Philippines





[REPUBLIC ACT NO. 10609]
AN ACT PROTECTING THE RIGHT OF STUDENTS ENROLLED IN COURSES REQUIRING PROFESSIONAL LICENSING EXAMINATIONS TO ENROLL IN REVIEW CENTERS OF THEIR CHOICE AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. – This Act shall be known as the “Protection of Students’ Right to Enroll in Review Centers Act of 2013”.
SEC. 2. Declaration of Policy. – It is the declared policy of the State to promote and protect the right to education as enshrined in the Philippine Constitution. While the State recognizes the complementary roles of public and private institutions in the enhancement and strengthening of the educational system, it is also the responsibility of the State to ensure the protection of students against possible abuses by Higher Educational Institutions (HEIs) in relation to the right of students to choose their review centers.
SEC. 3. Coverage. – This Act shall cover all public and private HEIs, including local colleges and universities, offering courses that require professional licensure examinations.
SEC. 4. Unlawful Acts. – In recognition of the student’s freedom to choose his/her review center, the following acts by HEIs shall be considered unlawful:
(1) Compelling students enrolled in courses requiring professional examinations to take review classes, which are not part of the curriculum, in a review center of the HEI’s choice;
(2) Making such review classes a prerequisite for graduation or completion of the course;
(3) Forcing students to enroll in a review center of the school’s choice, and to pay the corresponding fees that include transportation and board and lodging; and
(4) Withholding the transcript of scholastic records, diploma, certification or any essential document of the student to be used in support of the application for the professional licensure examinations so as to compel the students to attend in a review center of the HEI’s choice.
SEC. 5. Penalties. – Any HEI official or employee, including deans, coordinators, advisers, professors and other concerned individuals found guilty of violating any of the unlawful acts enumerated in Section 4 of this Act shall suffer the penalty prision correccional or imprisonment from six (6) months and one (1) day to six (6) years and a fine of Seven hundred fifty thousand pesos (P750,000.00). He/She shall also be suspended from his/her office and his/her professional license revoked.
In addition, the Commission on Higher Education (CHED) may impose disciplinary sanctions against an HEI official or employee violating this Act pursuant to Section 13 of Republic Act No. 7722, otherwise known as the “Higher Education Modernization Act of 1994”.
SEC. 6. Implementing Rules and Regulations. – The CHED shall be tasked to issue the implementing rules and regulations of this Act within thirty (30) days after this law takes effect.
SEC. 7. Separability Clause. – Should any provision herein be declared unconstitutional, the same shall not affect the validity of the other provisions of this Act.
SEC. 8. Repealing Clause. – All laws, presidential decrees or issuances, executive orders, letters of instruction, administrative orders, administrative memoranda, rules and regulations inconsistent with the provisions of this Act are hereby amended, modified or repealed accordingly.
SEC. 9. Effectivity Clause. – This Act shall take effect fifteen (15) days after its publication the Official Gazette or in two (2) newspapers of general circulation.

BP Blg. 22 criminal case (bouncing check); In Griffith v. Court of Appeals, 428 Phil. 878 (2002), the Court acquitted the accused due to the fact that two years before the filing of the Information for violation of B.P. No. 22, the accused had, in effect, paid the complainant an amount greater than the value of the bounced checks.

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ARIEL T. LIM vs. PEOPLE OF THE PHILIPPINES,  G.R. No. 190834, November 26, 2014


“x x x.

Records reveal that petitioner issued Bank of Commerce Check Nos. 0013813 and 0013814, dated June 30, 1998 and July 15, 1998, respectively, payable to CASH, in the amount of One Hundred Thousand Pesos (PI00,000.00) for each check. He gave the checks to Mr. Willie Castor (Castor) as his campaign donation to the latter's candidacy in the elections of 1998. It was Castor who ordered the delivery of printing materials and used petitioner's checks to pay for the same. Claiming that the printing materials were delivered too late, Castor instructed petitioner to issue a "Stop Payment" order for the two checks. Thus, the checks were dishonored by the bank because of said order and during trial, when the bank officer was presented on the witness stand, he admitted that said checks were drawn against insufficient funds (DAIF). Private complainant Magna B. Badiee sent two demand letters to petitioner, dated July 20, 1998 and July 23, 1998 and, subsequently, private complainant filed a complaint against petitioner before the Office of the Prosecutor. After the lapse of more than one month from receipt of the demand letters, and after receiving the subpoena from the Office of the Prosecutor, petitioner issued a replacement check dated September 8, 1998 in the amount of Two Hundred Thousand Pesos (P200,000.00). Private complainant Magna B. Badiee was able to encash said replacement check.

Nevertheless, on March 19, 1999, or six (6) months after petitioner had paid the amount of the bounced checks, two Informations were filed against him before the Metropolitan Trial Court of Manila (MeTC) x x x.

On September 12, 2006, the MeTC promulgated its Decision finding petitioner guilty of two (2) counts of violation of B.P. Blg. 22. Petitioner appealed to the Regional Trial Court of Manila (RTC), and on July 20, 2007, the RTC issued a Decision, the dispositive portion of which reads as follows:

WHEREFORE, this court therefore modifies the lower court decision with respect to criminal case no. 327138 (07-249931), because the lower court of Manila has no jurisdiction to try and decide cases where the essential ingredients of the crime charged happened in Quezon City. The decision of the lower court with respect to criminal case no. 327138 (07-249931) is ordered vacated and set aside for lack of jurisdiction.

The lower court findings that accused is found guilty beyond reasonable doubt for Violation of BP 22 with respect to criminal case no. 07-24992 is affirmed and is ordered to pay a fine of P100,000.00 plus costs. No findings as to civil liability because the court agrees with the lower court that the check was paid, is affirmed and there is no cogent reason to disturb the same. In case of failure to pay fine, the accused shall undergo subsidiary imprisonment of not more than six (6) months.
SO ORDERED.5

A petition for review was then filed with the Court of Appeals, and on June 30, 2009, the CA promulgated its Decision affirming in toto the RTC judgment. Petitioner's motion for reconsideration thereof was denied per Resolution dated January 4, 2010.

Thus, the present petition wherein petitioner posits that jurisprudence dictates the dismissal of the criminal case against him on the ground that he has fully paid the amount of the dishonored checks even before the Informations against him were filed incourt. Petitioner mainly relies on Griffith v. Court of Appeals, 428 Phil. 878 (2002).6 The Office of the Solicitor General (OSG) likewise recommends the acquittal of petitioner, opining that Griffith7 is applicable to the present case.

The Court finds the petition meritorious.

In Griffith,the Court acquitted the accused therein due to the fact that two years before the filing of the Information for violation of B.P. No. 22, the accused had, in effect, paid the complainant an amount greater than the value of the bounced checks. The CA held that the factual circumstances in Griffith are dissimilar from those in the present case. The Court disagrees with such conclusion.

The CA found Griffith inapplicable to the present case, because the checks subject of this case are personal checks, while the check involved in Griffithwas a corporate check and, hence, some confusion or miscommunication could easily occur between the signatories of the check and the corporate treasurer. Although the factual circumstances in the present case are not exactly the same as those in Griffith, it should be noted that the same kind of confusion giving rise to petitioner's mistake very well existed in the present case. Here, the check was issued by petitioner merely as a campaign contribution to Castor's candidacy. As found by the trial court, it was Castor who instructed petitioner to issue a "Stop Payment" order for the two checks because the campaign materials, for which the checks were used as payment, were not delivered on time. Petitioner relied on Castor's word and complied with his instructions, as it was Castor who was supposed to take delivery of said materials. Verily, it is easy to see how petitioner made the mistake of readily complying with the instruction to stop payment since he believed Castor's word that there is no longer any valid reason to pay complainant as delivery was not made as agreed upon. Nevertheless, two months after receiving the demand letter from private complainant and just several days after receiving the subpoena from the Office of the Prosecutor, accused issued a replacement check which was successfully encashed by private complainant.

The CA also took it against petitioner that he paid the amount of the checks only after receiving the subpoena from the Office of the Prosecutor, which supposedly shows that petitioner was motivated to pay not because he wanted to settle his obligation but because he wanted to avoid prosecution. This reasoning is tenuous, because in Griffith, the accused therein did not even voluntarily pay the value of the dishonored checks; rather, the complainant was paid from the proceeds of the invalid foreclosure of the accused's property. In said case, the Court did not differentiate as to whether payment was made before or after the complaint had been filed with the Office of the Prosecutor. It only mattered that the amount stated in the dishonored check had actually been paid before the Information against the accused was filed in court. In this case, petitioner even voluntarily paid value of the bounced checks. The Court, therefore, sees no justification for differentiating this case from that of Griffith. Records show that both in Griffith and in this case, petitioner had paid the amount of the dishonored checks before the filing of the Informations in court. Verily, there is no reason why the same liberality granted to the accused in Griffith should not likewise be extended to herein petitioner. The precept enunciated in Griffith is herein reiterated, to wit:

While we agree with the private respondent that the gravamen of violation of B.P. 22 is the issuance of worthless checks that are dishonored upon their presentment for payment, we should not apply penal laws mechanically. We must find if the application of the law is consistent with the purpose of and reason for the law.Ratione cessat lex, et cessat lex. (When the reason for the law ceases, the law ceases.) It is not the letter alone but the spirit of the law also that gives it life. This is especially so in this case where a debtor’s criminalization would not serve the ends of justice but in fact subvert it. The creditor having collected already more than a sufficient amount to cover the value of the checks for payment of rentals, via auction sale, we find that holding the debtor’s president to answer for a criminal offense under B.P. 22 two years after said collection is no longer tenable nor justified by law or equitable considerations.

In sum, considering that the money value of the two checks issued by petitioner has already been effectively paid two years before the informations against him were filed, we find merit in this petition. We hold that petitioner herein could not be validly and justly convicted or sentenced for violation of B.P. 22. x x x8 (Emphasis supplied)

In the more recent case of Tan v. Philippine Commercial International Bank, 575 Phil. 485 (2008)9 the foregoing principle articulated in Griffith was the precedent cited to justify the acquittal of the accused in said case. Therein, the Court enumerated the elements for violation of B.P. Blg. 22 being "(1) The accused makes, draws or issues a check to apply to account or for value; (2) The accused knows at the time of the issuance that he or she does not have sufficient funds in, or credit with the drawee bank for the payment of the check in full upon its presentment; and (3) The check is subsequently dishonored by the drawee bank for insufficiency of funds or credit, or it would have been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment."10 To facilitate proving the second element, the law created a prima facie presumption of knowledge of insufficiency of funds or credit, which is established when it is shown that the drawer of the check was notified of its dishonor and, within five banking days thereafter, failed to fully pay the amount of the check or make arrangements for its full payment. If the check, however, is made good or the drawer pays the value of the check within the five-day period, then the presumption is rebutted. Evidently, one of the essential elements of the violation is no longer present and the drawer may no longer be indicted for B.P. Blg. 22. Said payment within the period prescribed by the law is a complete defense.

Generally, only the full payment of the value of the dishonored check during the five-day grace period would exculpate the accused from criminal liability under B.P. Blg. 22 but, as the Court further elaborated in Tan:

In Griffith v. Court of Appeals, the Court held that were the creditor had collected more than a sufficient amount to cover the value of the checks representing rental arrearages, holding the debtor's president to answer for a criminal offense under B.P. Blg. 22 two years after the said collection is no longer tenable nor justified by law or equitable considerations. In that case, the Court ruled that albeit made beyond the grace period but two years prior to the institution of the criminal case, the payment collected from the proceeds of the foreclosure and auction sale of the petitioner's impounded properties, with more than a million pesos to spare, justified the acquittal of the petitioner.

x x x x.

In the present case, PCIB already extracted its proverbial pound of flesh by receiving and keeping in possession the four buses – trust properties surrendered by petitioner in about mid 1991 and March 1992 pursuant to Section 7 of the Trust Receipts Law, the estimated value of which was "about P6.6 million." It thus appears that the total amount of the dishonored checks – P1,785,855.75 – , x x x was more than fully satisfied priorto the transmittal and receiptof the July 9, 1992 letter of demand. In keeping with jurisprudence, the Court then considers such payment of the dishonored checks to have obliterated the criminal liability of petitioner.
It is consistent rule that penal statutes are construed strictly against the State and liberally in favor of the accused. And since penal laws should not be applied mechanically, the Court must determine whether the application of the penal law is consistent with the purpose and reason of the law. x x x11 (Underscoring supplied)

Thus, although payment of the value of the bounced check, if made beyond the 5-day period provided for in B.P. Blg. 22, would normally not extinguish criminal liability, the aforementioned cases show that the Court acknowledges the existence of extraordinary cases where, even if all the elements of the crime or offense are present, the conviction of the accused would prove to be abhorrent to society's sense of justice. Just like in Griffith and in Tan,12petitioner should not be penalized although all the elements of violation of B.P. Blg. 22 are proven to bepresent. The fact that the issuer of the check had already paid the value of the dishonored check after having received the subpoena from the Office of the Prosecutor should have forestalled the filing of the Information incourt. The spirit of the law which, for B.P. Blg. 22, is the protection of the credibility and stability of the banking system, would not be served by penalizing people who have evidently made amends for their mistakes and made restitution for damages even before charges have been filed against them. In effect, the payment of the checks before the filing of the informations has already attained the purpose of the law.

It should be emphasized as well that payment of the value of the bounced check after the information has been filed in court would no longer have the effect of exonerating the accused from possible conviction for violation of B.P. Blg. 22. Since from the commencement of the criminal proceedings in court, there is no circumstance whatsoever to show that the accused had every intention to mitigate or totally alleviate the ill effects of his issuance of the unfunded check, then there is no equitable and compelling reason to preclude his prosecution. In such a case, the letter of the law should be applied to its full extent.

Furthermore, to avoid any confusion, the Court's ruling in this case should be well differentiated from cases where the accused is charged with estafa under Article 315, par. 2(d) of the Revised Penal Code, where the fraud is perpetuated by postdating a check, or issuing a check in payment of an obligation when the offender had no funds in the bank, or his funds deposited therein were not sufficient to cover the amount of the check. In said case of estafa, damage and deceit are the essential elements of the offense, and the check is merely the accused's tool in committing fraud. In such a case, paying the value of the dishonored check will not free the accused from criminal liability. It will merely satisfy the civil liability of the crime but not the criminal liability.

In fine, the Court holds that herein petitioner must be exonerated from the imposition of penalties for violation of B.P. Blg. 22 as he had already paid the amount of the dishonored checks six (6) months before the filing of Informations with the court. Such a course of action is more in keeping with justice and equity.


X x x.”

Contract of sale/deed of absolute sale vs. Contract to Sell; distinguished.

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ALI AKANG VS. MUNICIPALITY OF ISULAN, SULTAN KUDARAT PROVINCE, REPRESENTED BY ITS MUNICIPAL MAYOR AND MUNICIPAL VICE MAYOR AND MUNICIPAL COUNCILORS/KAGAWADS, G.R. No. 186014, June 26, 2013.


“x x x.

The Deed of Sale is a Valid Contract of Sale.

The petitioner alleges that the Deed of Sale is merely an agreement to sell, which was not perfected due to non-payment of the stipulated consideration.⁠3 The respondent, meanwhile, claims that the Deed of Sale is a valid and perfected contract of absolute sale.⁠4 

A contract of sale is defined under Article 1458 of the Civil Code:

By the contract of sale, one of the contracting parties obligates himself to transfer the ownership of and to deliver a determinate thing, and the other to pay therefore a price certain in money or its equivalent.

The elements of a contract of sale are: (a) consent or meeting of the minds, that is, consent to transfer ownership in exchange for the price; (b) determinate subject matter; and (c) price certain in money or its equivalent.⁠5 

A contract to sell, on the other hand, is defined by Article 1479 of the Civil Code:

[A] bilateral contract whereby the prospective seller, while expressly reserving the ownership of the subject property despite delivery thereof to the prospective buyer, binds himself to sell the said property exclusively to the prospective buyer upon fulfillment of the condition agreed upon, that is, full payment of the purchase price.

In a contract of sale, the title to the property passes to the buyer upon the delivery of the thing sold, whereas in a contract to sell, the ownership is, by agreement, retained by the seller and is not to pass to the vendee until full payment of the purchase price.⁠6 

The Deed of Sale executed by the petitioner and the respondent is a perfected contract of sale, all its elements being present. There was mutual agreement between them to enter into the sale, as shown by their free and voluntary signing of the contract. There was also an absolute transfer of ownership of the property by the petitioner to the respondent as shown in the stipulation: “x x x I [petitioner] hereby sell, transfer, cede, convey and assign as by these presents do have sold, transferred, ceded, conveyed and assigned, x x x.”⁠7 There was also a determinate subject matter, that is, the two-hectare parcel of land as described in the Deed of Sale. Lastly, the price or consideration is at Three Thousand Pesos (P3,000.00), which was to be paid after the execution of the contract. The fact that no express reservation of ownership or title to the property can be found in the Deed of Sale bolsters the absence of such intent, and the contract, therefore, could not be one to sell. Had the intention of the petitioner been otherwise, he could have: (1) immediately sought judicial recourse to prevent further construction of the municipal building; or (2) taken legal action to contest the agreement.⁠8 The petitioner did not opt to undertake any of such recourses.

X x x.”





Issue Raised for the First Time on Appeal is Barred by Estoppel

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ALI AKANG VS. MUNICIPALITY OF ISULAN, SULTAN KUDARAT PROVINCE, REPRESENTED BY ITS MUNICIPAL MAYOR AND MUNICIPAL VICE MAYOR AND MUNICIPAL COUNCILORS/ KAGAWADS, G.R. No. 186014, June 26, 2013.


“x x x.

Issue Raised for the First Time on Appeal is Barred by Estoppel

The petitioner asserts that the Deed of Sale was notarized by Atty. Gualberto B. Baclig who was not authorized to administer the same, hence, null and void. This argument must be rejected as it is being raised for the first time only in this petition. In his arguments before the RTC and the CA, the petitioner focused mainly on the validity and the nature of the Deed of Sale, and whether there was payment of the purchase price. The rule is settled that issues raised for the first time on appeal and not raised in the proceedings in the lower court are barred by estoppel. To consider the alleged facts and arguments raised belatedly would amount to trampling on the basic principles of fair play, justice, and due process.⁠1 Accordingly, the petitioner’s attack on the validity of the Deed of Sale vis-à-vis its compliance with the 2004 New Notarial Law must be disregarded.⁠2

x x x.”



Sale; Non-payment of consideration or purchase price; effect of; remedy.

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ALI AKANG VS. MUNICIPALITY OF ISULAN, SULTAN KUDARAT PROVINCE, REPRESENTED BY ITS MUNICIPAL MAYOR AND MUNICIPAL VICE MAYOR AND MUNICIPAL COUNCILORS/KAGAWADS, G.R. No. 186014, June 26, 2013.

“x x x.

Payment of consideration or purchase price

The petitioner’s allegation of non-payment is of no consequence taking into account the Municipal Voucher presented before the RTC, which proves payment by the respondent of Three Thousand Pesos (P3,000.00). The petitioner, notwithstanding the lack of the Municipal Treasurer’s approval, admitted that the signature appearing on the Municipal Voucher was his and he is now estopped from disclaiming payment.

Even assuming, arguendo, that the petitioner was not paid, such non payment is immaterial and has no effect on the validity of the contract of sale. A contract of sale is a consensual contract and what is required is the meeting of the minds on the object and the price for its perfection and validity.⁠9 In this case, the contract was perfected the moment the petitioner and the respondent agreed on the object of the sale – the two-hectare parcel of land, and the price – Three Thousand Pesos (P3,000.00). Non-payment of the purchase price merely gave rise to a right in favor of the petitioner to either demand specific performance or rescission of the contract of sale.⁠10

Sections 145 and 146 of the Administrative Code of Mindanao and Sulu, and Section 120 of the PLA, as amended, are not applicable

The petitioner relies on the foregoing laws in assailing the validity of the Deed of Sale, claiming that the contract lacks executive approval and that he is an illiterate non-Christian to whom the benefits of Sections 145 and 146 of the Administrative Code of Mindanao and Sulu should apply.

Section 145 of the Administrative Code of Mindanao and Sulu essentially provides for the requisites of the contracts entered into by a person with any Moro or other non-Christian inhabitants.⁠11 Section 146,⁠12 meanwhile, provides that contracts entered into in violation of Section 145 are void. These provisions aim to safeguard the patrimony of the less developed ethnic groups in the Philippines by shielding them against imposition and fraud when they enter into agreements dealing with realty.⁠13

Section 120 of the PLA (Commonwealth Act No. 141) affords the same protection.⁠14 R.A. No. No. 3872⁠15 likewise provides that conveyances and encumbrances made by illiterate non-Christian or literate non-Christians where the instrument of conveyance or encumbrance is in a language not understood by said literate non-Christians shall not be valid unless duly approved by the Chairman of the Commission on National Integration.

In Jandoc-Gatdula v. Dimalanta,⁠16 however, the Court categorically stated that while the purpose of Sections 145 and 146 of the Administrative Code of Mindanao and Sulu in requiring executive approval of contracts entered into by cultural minorities is indeed to protect them, the Court cannot blindly apply that law without considering how the parties exercised their rights and obligations. In this case, Municipality Resolution No. 70, which approved the appropriation of P3,000.00, was, in fact, accepted by the Provincial Board of Cotabato. In approving the appropriation of P3,000.00, the Municipal Council of Isulan and the Provincial Board of Cotabato, necessarily, scrutinized the Deed of Sale containing the terms and conditions of the sale. Moreover, there is nothing on record that proves that the petitioner was duped into signing the contract, that he was taken advantage of by the respondent and that his rights were not protected.

The court’s duty to protect the native vendor, however, should not be carried out to such an extent as to deny justice to the vendee when truth and justice happen to be on the latter’s side. The law cannot be used to shield the enrichment of one at the expense of another. More important, the law will not be applied so stringently as to render ineffective a contract that is otherwise valid, except for want of approval by the CNI. This principle holds, especially when the evils sought to be avoided are not obtaining.⁠17

The Court must also reject the petitioner’s claim that he did not understand the import of the agreement. He alleged that he signed in Arabic the Deed of Sale, the Joint Affidavit and the Municipal Voucher, which were all in English, and that he was not able to comprehend its contents. Records show the contrary. The petitioner, in fact, was able to execute in favor of Baikong a Special Power of Attorney (SPA) dated July 23, 1996, which was written in English albeit signed by the petitioner in Arabic. Said SPA authorized Baikong, the petitioner’s sister, to follow-up the payment of the purchase price. This raises doubt on the veracity of the petitioner’s allegation that he does not understand the language as he would not have been able to execute the SPA or he would have prevented its enforcement.

X x x.”



Claim for Recovery of Possession and Ownership Barred by Laches

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ALI AKANG VS. MUNICIPALITY OF ISULAN, SULTAN KUDARAT PROVINCE, REPRESENTED BY ITS MUNICIPAL MAYOR AND MUNICIPAL VICE MAYOR AND MUNICIPAL COUNCILORS/KAGAWADS, G.R. No. 186014, June 26, 2013.


“x x x.

The Petitioner’s Claim for Recovery of Possession and Ownership is Barred by Laches

Laches has been defined as the failure or neglect, for an unreasonable and unexplained length of time, to do that which, by exercising due diligence could or should have been done earlier⁠18 It should be stressed that laches is not concerned only with the mere lapse of time.⁠19 

As a general rule, an action to recover registered land covered by the Torrens System may not be barred by laches.⁠20 Neither can laches be set up to resist the enforcement of an imprescriptible legal right.⁠21 In exceptional cases, however, the Court allowed laches as a bar to recover a titled property. Thus, in Romero v. Natividad,⁠22 the Court ruled that laches will bar recovery of the property even if the mode of transfer was invalid. Likewise, in Vda. de Cabrera v. CA,⁠23 the Court ruled:

In our jurisdiction, it is an enshrined rule that even a registered owners of property may be barred from recovering possession of property by virtue of laches. Under the Land Registration Act (now the Property Registration Decree), no title to registered land in derogation to that of the registered owner shall be acquired by prescription or adverse possession. The same is not true with regard to laches. x x x.⁠24 (Citation omitted and emphasis supplied)

More particularly, laches will bar recovery of a property, even if the mode of transfer used by an alleged member of a cultural minority lacks executive approval.⁠25 Thus, in Heirs of Dicman v. Cariño,⁠26 the Court upheld the Deed of Conveyance of Part Rights and Interests in Agricultural Land executed by Ting-el Dicman in favor of Sioco Cariño despite lack of executive approval. The Court stated that “despite the judicial pronouncement that the sale of real property by illiterate ethnic minorities is null and void for lack of approval of competent authorities, the right to recover possession has nonetheless been barred through the operation of the equitable doctrine of laches.”⁠27 Similarly in this case, while the respondent may not be considered as having acquired ownership by virtue of its long and continued possession, nevertheless, the petitioner’s right to recover has been converted into a stale demand due to the respondent’s long period of possession and by the petitioner’s own inaction and neglect.⁠28 The Court cannot accept the petitioner’s explanation that his delayed filing and assertion of rights was due to Martial Law and the Cotabato Ilaga-Black Shirt Troubles. The Martial Law regime was from 1972 to 1986, while the Ilaga-Black Shirt Troubles were from the 1970s to the 1980s. The petitioner could have sought judicial relief, or at the very least made his demands to the respondent, as early as the third quarter of 1962 after the execution of the Deed of Sale and before the advent of these events. Moreover, even if, as the petitioner claims, access to courts were restricted during these times, he could have immediately filed his claim after Martial Law and after the Cotabato conflict has ended. The petitioner’s reliance on the Court’s treatment of Martial Law as force majeure that suspended the running of prescription in Development Bank of the Philippines v. Pundogar⁠29 is inapplicable because the Court’s ruling therein pertained to prescription and not laches. Consequently, the petitioner’s lengthy inaction sufficiently warrants the conclusion that he acquiesced or conformed to the sale.

Vigilantibus sed non dormientibus jura subverniunt. The law aids the vigilant, not those who sleep on their rights. This legal percept finds application in the petitioner’s case.

X x x.”



See:



1 Imani v. Metropolitan Bank & Trust Company, G.R. No. 187023, November 17, 2010, 635 SCRA 357, 371.

2 Lorzano v. Tabayag, Jr., G.R. No. 189647, February 6, 2012, 665 SCRA 38.

5 David v. Misamis Occidental II Electric Cooperative, Inc., G.R. No. 194785, July 11, 2012, 676 SCRA 367, 376-377.

6 Heirs of Paulino Atienza v. Espidol, G.R. No. 180665, August 11, 2010, 628 SCRA 256, 262, citing Lim v. Court of Appeals, 261 Phil. 690, 695 (1990).

9 Province of Cebu v. Heirs of Rufina Morales, G.R. No. 170115, February 19, 2008, 546 SCRA 315, 323.

11 These provisions read:

Sec. 145. Contracts with non-Christians: requisites.—Save and except contracts of sale or barter of personal property and contracts of personal service comprehended in chapter seventeen hereof no contract or agreement shall be made in the Department by any person with any Moro or other non-Christian inhabitant of the same for the payment or delivery of money or other thing of value in present or in prospective, or any manner affecting or relating to any real property, unless such contract or agreement be executed and approved as follows:

(a) Such contract or agreement shall be in writing, and a duplicate thereof delivered to each party.

(b) It shall be executed before a judge of a court of record, justice or auxiliary justice of the peace, or notary public, and shall bear the approval of the provincial governor wherein the same was executed or his representative duly authorized in writing for such purpose, indorsed upon it.

(c) It shall contain the names of all parties in interest, their residence and occupation; x x x

(d) It shall state the time when and place where made, the particular purpose for which made, the special thing or things to be done under it, and, if for the collection of money, the basis of the claim, the source from which it is to be collected and the person or persons to whom payment is to be made, the disposition to be made thereof when collected, the amount or rate per centum of the fee in all cases; and if any contingent matter or condition constitutes a part of the contract or agreement, the same shall be specifically set forth.

(e) x x x

(f) The judge, justice or auxiliary justice of the peace, or notary public before whom such contract or agreement is executed shall certify officially thereon the time when and the place where such contract or agreement was executed, and that it was in his presence, and who are the interested parties thereto, as stated to him at the time; the parties making the same; the source and extent of authority claimed at the time by the contracting parties to make the contract or agreement, and whether made in person or by agent or attorney of any party or parties thereto.

12 Sec. 146. Void contracts. — Every contract or agreement made in violation of the next preceding section shall be null and void; x x x.

13 Jandoc-Gatdula v. Dimalanta, 528 Phil. 839, 858-859 (2006), citing Cunanan v. CA, 134 Phil. 338, 341-342 (1968).

14 Sec.120 states:

Conveyance and encumbrance made by persons belonging to the so-called “non-christian Filipinos” or national cultural minorities, when proper, shall be valid if the person making the conveyance or encumbrance is able to read and can understand the language in which the instrument of conveyance or encumbrances is written. Conveyances or encumbrances made by illiterate non-Christian or literate non-Christians where the instrument of conveyance or encumbrance is in a language not understood by the said literate non-Christians shall not be valid unless duly approved by the Chairman of the Commission on National Integration.

15 Entitled, “An Act to Amend Sections Forty-four, forty-eight and one hundred Twenty of Commonwealth Act Numbered One Hundred Forty-one, As Amended otherwise Known as the ‘Public Land Act, and for other Purposes,” approved on June 18, 1964.

16 528 Phil. 839 (2006).

Isabela Colleges, Inc. v. The Heirs of Tolentino-Rivera, 397 Phil. 955, 969 (2000).

19 Pineda v. Heirs of Eliseo Guevara, 544 Phil. 554, 562 (2007).

20 Mateo v. Diaz, 424 Phil. 772, 781 (2002).

21 Heirs of Ingjug-Tiro v. Spouses Casals, 415 Phil. 665, 674 (2001).

22 500 Phil. 322 (2005).

23 335 Phil. 19 (1997).

26 523 Phil. 630 (2006).

28 Mejia de Lucas v. Gamponia, 100 Phil. 277, 282-284 (1956).

29 G.R. No. 96921, January 29, 1993, 218 SCRA 118.



Sexual infidelity and abandonment of the conjugal dwelling, even if true, do not necessarily constitute psychological incapacity; these are simply grounds for legal separation.⁠6 To constitute psychological incapacity, it must be shown that the unfaithfulness and abandonment are manifestations of a disordered personality that completely prevented the erring spouse from discharging the essential marital obligations.

Next: Ownership certainly carries the right of possession, but the possession contemplated is not exactly the same as that which is in issue in a forcible entry case. Possession in a forcible entry suit refers only to possession de facto, or actual or material possession, and not one flowing out of ownership. These are different legal concepts under which the law provides different remedies for recovery of possession. Thus, in a forcible entry case, a party who can prove prior possession can recover the possession even against the owner. Whatever may be the character of the possession, the present occupant of the property has the security to remain on that property if the occupant has the advantage of precedence in time and until a person with a better right lawfully causes eviction.⁠
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REPUBLIC OF THE PHILIPPINES, VS. CESAR ENCELAN, G.R. No. 170022, January 09, 2013.


"x x x.

Applicable Law and Jurisprudence on Psychological Incapacity

Article 36 of the Family Code governs psychological incapacity as a ground for declaration of nullity of marriage. It provides that “[a] marriage contracted by any party who, at the time of the celebration, was psychologically incapacitated to comply with the essential marital obligations of marriage, shall likewise be void even if such incapacity becomes manifest only after its solemnization.”

In interpreting this provision, we have repeatedly stressed that psychological incapacity contemplates “downright incapacity or inability to take cognizance of and to assume the basic marital obligations”;⁠1 not merely the refusal, neglect or difficulty, much less ill will, on the part of the errant spouse.⁠2 The plaintiff bears the burden of proving the juridical antecedence (i.e., the existence at the time of the celebration of marriage), gravity and incurability of the condition of the errant spouse.⁠3 

Cesar failed to prove Lolita’s psychological incapacity 

In this case, Cesar’s testimony failed to prove Lolita’s alleged psychological incapacity. Cesar testified on the dates when he learned of Lolita’s alleged affair and her subsequent abandonment of their home,⁠4 as well as his continued financial support to her and their children even after he learned of the affair,⁠5 but he merely mentioned in passing Lolita’s alleged affair with Alvin and her abandonment of the conjugal dwelling.

In any event, sexual infidelity and abandonment of the conjugal dwelling, even if true, do not necessarily constitute psychological incapacity; these are simply grounds for legal separation.⁠6 To constitute psychological incapacity, it must be shown that the unfaithfulness and abandonment are manifestations of a disordered personality that completely prevented the erring spouse from discharging the essential marital obligations.⁠7 No evidence on record exists to support Cesar’s allegation that Lolita’s infidelity and abandonment were manifestations of any psychological illness.

Cesar mistakenly relied on Dr. Flores’ psychological evaluation report on Lolita to prove her alleged psychological incapacity. The psychological evaluation, in fact, established that Lolita did not suffer from any major psychiatric illness.⁠8 Dr. Flores’ observation on Lolita’s interpersonal problems with co-workers,⁠9 to our mind, does not suffice as a consideration for the conclusion that she was — at the time of her marriage — psychologically incapacitated to enter into a marital union with Cesar. Aside from the time element involved, a wife’s psychological fitness as a spouse cannot simply be equated with her professional/work relationship; workplace obligations and responsibilities are poles apart from their marital counterparts. While both spring from human relationship, their relatedness and relevance to one another should be fully established for them to be compared or to serve as measures of comparison with one another. To be sure, the evaluation report Dr. Flores prepared and submitted cannot serve this purpose. Dr. Flores’ further belief that Lolita’s refusal to go with Cesar abroad signified a reluctance to work out a good marital relationship⁠10 is a mere generalization unsupported by facts and is, in fact, a rash conclusion that this Court cannot support.

In sum, we find that Cesar failed to prove the existence of Lolita’s psychological incapacity; thus, the CA committed a reversible error when it reconsidered its original decision.

Once again, we stress that marriage is an inviolable social institution⁠11 protected by the State. Any doubt should be resolved in favor of its existence its existence and continuation and against its dissolution and nullity.⁠12 It cannot be dissolved at the whim of the parties nor by transgressions made by one party to the other during the marriage.

X x x.”


See:

1 Kalaw v. Fernandez, G.R. No. 166357, September 19, 2011, 657 SCRA 822, 836-837.

2 Agraviador v. Amparo-Agraviador, G.R. No. 170729, December 8, 2010, 637 SCRA 519, 538; Toring v. Toring, G.R. No. 165321, August 3, 2010, 626 SCRA 389, 405; Paz v. Paz, G.R. No. 166579, February 18, 2010, 613 SCRA 195, 205; Navales v. Navales, G.R. No. 167523, June 27, 2008, 556 SCRA 272, 288; Paras v. Paras, G.R. No. 147824, August 2, 2007, 529 SCRA 81, 106; Republic of the Phils. v. Iyoy, 507 Phil. 485, 502 (2005); and Rep. of the Phils. v. Court of Appeals, 335 Phil. 664, 678 (1997).

3 Kalaw v. Fernandez, supra note 21, at 823; Republic v. Galang, G.R. No. 168335, June 6, 2011, 650 SCRA 524, 544; Dimayuga-Laurena v. Court of Appeals, G.R. No. 159220, September 22, 2008, 566 SCRA 154, 161-162; Republic v. Cabantug-Baguio, G.R. No. 171042, June 30, 2008, 556 SCRA 711, 725; Hernandez v. Court of Appeals, 377 Phil. 919, 932 (1999); and Rep. of the Phils. v. Court of Appeals, supra, at 676.

4 Supra note 10.

5 Supra note 11.

6 The Family Code, Art. 55. A petition for legal separation may be filed on any of the following grounds:

x x x x

(8) Sexual infidelity or perversion;

x x x x

(10) Abandonment of petitioner by respondent without justifiable cause for more than one year.

7 Toring v. Toring, supra note 22, at 406.

8 Supra note 13.

9 Supra note 15.

10 Supra note 16.

11 Bolos v. Bolos, G.R. No. 186400, October 20, 2010, 634 SCRA 429, 439; and Camacho-Reyes v. Reyes, G.R. No. 185286, August 18, 2010, 628 SCRA 461, 464.

12 Ochosa v. Alano, G.R. No. 167459, January 26, 2011, 640 SCRA 517, 524; Republic v. Cabamug-Baguio, supra note 23, at 727; and Rep. of the Phils. v. Court of Appeals, supra note 23, at 676.



Ownership certainly carries the right of possession, but the possession contemplated is not exactly the same as that which is in issue in a forcible entry case. Possession in a forcible entry suit refers only to possession de facto, or actual or material possession, and not one flowing out of ownership. These are different legal concepts under which the law provides different remedies for recovery of possession. Thus, in a forcible entry case, a party who can prove prior possession can recover the possession even against the owner. Whatever may be the character of the possession, the present occupant of the property has the security to remain on that property if the occupant has the advantage of precedence in time and until a person with a better right lawfully causes eviction.⁠

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MARCELA M. DELA CRUZ VS. ANTONIO Q. HERMANO AND HIS WIFE REMEDIOS HERMANO, G.R. No. 160914, March 25, 2015.



“x x x.

After an exhaustive review of the case record, the Court finds that the Complaint was sufficient in form and substance, but that there was no proof of prior physical possession by respondents.

The Complaint’s allegations sufficiently established the jurisdictional facts required in forcible entry cases.

Section 1, Rule 70 of the Rules of Court, requires that in actions for forcible entry, it must be alleged that the complainant was deprived of the possession of any land or building by force, intimidation, threat, strategy, or stealth, and that the action was filed anytime within one year from the time the unlawful deprivation of possession took place. This requirement implies that in those cases, possession of the land by the defendant has been unlawful from the beginning, as the possession was obtained by unlawful means. Further, the complainant must allege and prove prior physical possession of the property in litigation until he or she was deprived thereof by the defendant. The one-year period within which to bring an action for forcible entry is generally counted from the date of actual entry into the land, except when entry was made through stealth; if so, the one-year period would be counted from the time the plaintiff learned about it.⁠2

It is not necessary, however, for the complaint to utilize the language of the statute; i.e., to state that the person has been deprived of possession by force, intimidation, threat, strategy or stealth. A statement of facts showing that dispossession took place under those conditions is sufficient. Still, the complaint must show enough on its face to give the court jurisdiction without resort to parol evidence.⁠3

In the present case, petitioner argues that the Complaint failed to allege prior physical possession, and that the CA skirted the issue of the sufficiency of the allegations therein. Instead, the appellate court allegedly addressed only the principal issue of who had the better right to possess the subject property.

It can be readily seen from the Decision of the CA that it squarely addressed the issue of the sufficiency of the Complaint’s allegations. Thus, contrary to the RTC’s findings, the CA found that the Complaint had sufficiently alleged respondents’ prior physical possession and petitioner’s entry into the property by stealth. Moreover, it differed with the RTC’s finding that the case was not for forcible entry.

The CA discussed these issues as follows:

The complaint subject of this case was captioned as “ejectment”. From a reading of the allegations of the subject Complaint, we find that the action is one for forcible entry. Petitioner alleged that he is the owner of the property registered under TCT No. T-24503; that the possession thereof by respondent on 1 September 2001 was pursuant to an alleged Memorandum of Agreement between her and a certain Don Mario Enciso, without the authority and consent of the petitioner; and that he has served written demands, dated 27 September 2001 and 24 October 2001, but that respondent refused to vacate the property. According to petitioner, the Complaint, which was filed on 13 June 2002, was filed within one year from the occupation of the property.

x x x x

Petitioner likewise contends that prior to the disputed possession of respondent, he and his family used the property as their “rest house/vacation place” after their hard day’s work in Metro Manila. He avers that his possession is anchored on TCT No. T-24503. Notably, respondent acknowledged the existence of the muniment of title presented by petitioner. In relation thereto, noteworthy is the fact that respondent has shown no document evidencing proof of ownership over the subject matter except for the unnotarized documents of conveyances executed between her and Don Mario Enciso Benitez and Don Mario Enciso Benitez and petitioner. The fact that the deeds were not notarized nor acknowledged before a notary public raises doubt as to the probative value of said documents. On this matter, evidentiary value weighs in favor of petitioner.

As regards petitioner’s supplication for restoration of possession which is based on his and his family’s use of the subject property prior to the inception of the controversy, the rule is that whatever may be the character of his prior possession, if he has in his favor priority in time, he has the security that entitles him to remain on the property until he is lawfully ejected by a person having a better right. From a reading of the records, it is evident that the petitioner had addressed the element of prior physical possession.

Having established prior possession, the corollary conclusion would be that the entry of respondent – and her subsequent possession of the contested property – was illegal at the inception. Respondent’s entry into the land was effected without the knowledge of petitioner, consequently, it is categorized as possession by stealth.⁠4

The allegations in paragraphs 5 and 6 of the Complaint adequately aver prior physical possession by respondents and their dispossession thereof by stealth, because the intrusion by petitioner was without their knowledge and consent. The Court thus agrees with the findings of the CA that contrary to those of the RTC that the case was an action for ejectment in the nature of accion reivindicatoria, the case was actually for forcible entry and sufficient in form.

Likewise, the Court agrees with the CA’s findings that the Complaint was timely filed. It is settled that where forcible entry occurred clandestinely, the one-year prescriptive period should be counted from the time the person who was deprived of possession demanded that the deforciant desist from dispossession when the former learned about it.⁠5 The owners or possessors of the land cannot be expected to enforce their right to its possession against the illegal occupant and sue the latter before learning of the clandestine intrusion. And to deprive lawful possessors of the benefit of the summary action under Rule 70 of the Revised Rules, simply because the stealthy intruder managed to conceal the trespass for more than a year, would be to reward clandestine usurpations even if they are unlawful.⁠6

The title to the property of respondents and their Tax Declaration proved possession de jure, but not their actual possession of the property prior to petitioner’s entry.

The burden of sufficiently alleging prior physical possession carries with it the concomitant burden of establishing one’s case by a preponderance of evidence. To be able to do so, respondents herein must rely on the strength of their own evidence, not on the weakness of that of petitioner. It is not enough that the allegations of a complaint make out a case for forcible entry. The plaintiff must prove prior physical possession. It is the basis of the security accorded by law to a prior occupant of a property until a person with a better right acquires possession thereof.⁠7

The Court has scrutinized the parties’ submissions, but found no sufficient evidence to prove respondents’ allegation of prior physical possession.

To prove their claim of having a better right to possession, respondents submitted their title thereto and the latest Tax Declaration prior to the initiation of the ejectment suit. As the CA correctly observed, petitioner failed to controvert these documents with competent evidence. It erred, however, in considering those documents sufficient to prove respondents’ prior physical possession.

Ownership certainly carries the right of possession, but the possession contemplated is not exactly the same as that which is in issue in a forcible entry case. Possession in a forcible entry suit refers only to possession de facto, or actual or material possession, and not one flowing out of ownership. These are different legal concepts under which the law provides different remedies for recovery of possession. Thus, in a forcible entry case, a party who can prove prior possession can recover the possession even against the owner. Whatever may be the character of the possession, the present occupant of the property has the security to remain on that property if the occupant has the advantage of precedence in time and until a person with a better right lawfully causes eviction.⁠8

Similarly, tax declarations and realty tax payments are not conclusive proofs of possession. They are merely good indicia of possession in the concept of owner based on the presumption that no one in one’s right mind would be paying taxes for a property that is not in one’s actual or constructive possession.⁠9

Guided by the foregoing, the Court finds that the proofs submitted by respondents only established possession flowing from ownership. Although respondents have claimed from the inception of the controversy up to now that they are using the property as their vacation house, that claim is not substantiated by any corroborative evidence. On the other hand, petitioner’s claim that she started occupying the property in March 2001, and not in September of that year as Antonio alleged in his Complaint, was corroborated by the Affidavit⁠10 of petitioner’s caretaker. Respondents did not present any evidence to controvert that affidavit.

Therefore, respondents failed to discharge their burden of proving the element of prior physical possession. Their uncorroborated claim of that fact, even if made under oath, is self-serving. It does not amount to preponderant evidence, which simply means that which is of greater weight or is more convincing than evidence that is offered in opposition⁠11.

As noted at the outset, it bears stressing that the Court is not a trier of facts. However, the conflicting findings of fact of the MTCC and the RTC, on the one hand, and the CA on the other, compelled us to revisit the records of this case for the proper dispensation of justice.⁠12 Moreover, it must be stressed that the Court’s pronouncements in this case are without prejudice to the parties’ right to pursue the appropriate remedy.

X x x.”



See:

1 Nenita Quality Foods Corp. v. Galabo, G.R. No. 174191, 30 January 2013, 689 SCRA 569.

2 Ong v. Court of Appeals, 407 Phil 1045 (2001).

3 Abad v. Farrales, G.R. No. 178635, 11 April 2011, 647 SCRA 473; Cajayon v. Batuyong, 517 Phil 648 (2006); David v. Cordova, 502 Phil 626 (2005).

5 See Domalsin v. Sps. Valenciano, 515 Phil 745, 766 (2006).

6 Prieto v. Reyes, 121 Phil 1218, 1220 (1965).

7 Abad v. Farrales, supra.

8 Nenita Quality Foods Corp. v. Galabo, supra; Pajuyo v. Guevarra, G.R. No, 146364, 3 June 2004, 430 SCRA 492.

9 De Grano v. Lacaba, 607 Phil 122 (2009).

11 Lee v. Dela Paz, G.R. No. 183606, 27 October 2009, 604 SCRA 522.

12 Sps. Dela Cruz v. Sps. Capco, G.R. No. 176055, 17 March 2014.



Cybercrime

Previous: Ownership certainly carries the right of possession, but the possession contemplated is not exactly the same as that which is in issue in a forcible entry case. Possession in a forcible entry suit refers only to possession de facto, or actual or material possession, and not one flowing out of ownership. These are different legal concepts under which the law provides different remedies for recovery of possession. Thus, in a forcible entry case, a party who can prove prior possession can recover the possession even against the owner. Whatever may be the character of the possession, the present occupant of the property has the security to remain on that property if the occupant has the advantage of precedence in time and until a person with a better right lawfully causes eviction.⁠
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Download:

https://www.doj.gov.ph/files/cybercrime_office/RA_10175-Cybercrime_Prevention_Act_of_2012.pdf

REpUBLIC ACT No. 1017 5  - AN ACT DEFINING CYBERCRIME, PROVIDING FOR THE PREVENTION, INVESTIGATION, SUPPRESSION AND THE IMPOSITION OF PENALTIES THEREFOR AND FOR OTHER PURPOSES


https://www.doj.gov.ph/files/issuance/DC020_Guidelines_on_Bail_for_RA_No__10175_for_the_Cybercrime_Prevention_Act_of_2012.pdf

Guidelines on Bail for Republic Act No. 10175 or the Cybercrime Prevention Act of 2012

DOJ clarifies Bail Threshold for Qualified Theft

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See - DOJ clarifies Bail Threshold for Qualified Theft :: Department of Justice - Republic of the Philippines :: Tel: (+632) 523 8481, (+632) 523 6826



"x x x.

The Department of Justice today said that the value of property in cases of qualified theft that determines whether or not bail can be granted is set at Php222,000. This is the existing policy under Department Circular No. 29 series of 2005.

Recently, the Office of the President revoked Memorandum Order No. 177 issued in 2005 that provided a different amount of Php500,000.

"The conflicting issuances resulted to confusion in the bench and bar," said Secretary of Justice Leila M. de Lima. "By having clear rules, we hope that there will be more predictability and stability in our legal framework," she added.

This criminal justice reform was initiated by the DOJ Bail Bond Committee constituted under Department Order No. 383 dated 10 May 2012 and chaired by Assistant Secretary Geronimo L. Sy.

"The next step is to craft a policy that will not put people to jail indefinitely for property crimes unless these constitute economic sabotage or large scale fraud," said Assistant Secretary Sy. "The poor specially ought not to be punished twice for not being able to afford bail," he added.

The Bail Committee will proceed with the development of the 2014 Guidelines on Bail to update the old 2000 Rules.

A copy of Memorandum Order No. 63 entitled "Revoking Memorandum Order No. 177 (s. 2005)" dated December 6, 2013 may be downloaded at http://www.gov.ph/2013/12/o6/memorandum-order-no-63-s-2013/.

- See more at: http://doj.gov.ph/news.html?title=DOJ%20clarifies%20Bail%20Threshold%20for%20Qualified%20Theft&newsid=247#sthash.sHzLnbKQ.dpuf

x x x."

Filing of Application as Witness Under the Witness Protection Program (WPP) :: Department of Justice - Republic of the Philippines :: Tel: (+632) 523 8481, (+632) 523 6826

Request for Parole; procedures.

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See - Request for Parole :: Department of Justice - Republic of the Philippines :: Tel: (+632) 523 8481, (+632) 523 6826


"x x x.

I. Eligibility for Review of a Parole Case:

1. Inmate is serving an indeterminate sentence the maximum period of which exceeds one (1) year;

2. Inmate has served the minimum period of the indeterminate sentence;

3. Inmate's conviction is final and executory (in case the inmate has one or more co-accused who had been convicted, the director/warden concerned shall

forward their prison records and carpetas/jackets at the same time);

4. Inmate has no pending case; and

5. Inmate is serving sentence in the national penitentiary, unless the confinement of said inmate in a municipal, city, district or provincial jail is justified.



II. Disqualification of a Parole Case:

1. Inmates convicted of offenses punished with death penalty or life imprisonment;

2. Inmates convicted of treason, conspiracy or proposal to commit treason or espionage;

3. Inmates convicted of misprision of treason, rebelion, sedition or coup d'etat;

4. Inmates convicted of piracy or mutiny on the high seas or Philippine waters;

5. Inmates who are habitual deliquents, i.e., those who, within a period of ten (10) years from the date of release from prison orlast conviction of the crimes

of serious or less serious physical injuries, robbery, theft, estafa, and falsification, are found guilty of any of said crimes a third time or oftener;

6. Inmates who escaped from confinement or evaded sentence;

7. Inmates who having been granted conditional pardon by the President of the Philippines shall have violated any of the terms thereof;

8. Inmates whose maximum term of imprisonment does not exceed one (1) year or those with definite sentence;

9. Inmates convicted of offenses punished with reclusion perpetua, or whose sentences were reduced to reclusion perpetua by reason of Republic Act No. 9346

enacted on June 24, 2006, amending Republic Act No. 7659 dated January 1, 2004; and

10. Inmates convicted for violation of the laws on terrorism, plunder and transnational crimes.

x x x."



DOJ; GROUNDS FOR DECLINING TO RENDER AN OPINION

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“x x x.

20 April 2012
MEMORANDUM CIRCULAR NO. 026

TO: THE CHIEF STATE COUNSEL, THE ASSISTANT CHIEF STATE COUNSELS, STATE COUNSELS AND OTHER MEMBERS OF THE LEGAL STAFF

SUBJECT: GROUNDS FOR DECLINING TO RENDER AN OPINION

In order for the Department to more faithfully fulfill its mandate and function as legal counsel for the government (Sections 1 to 3, Chapter 1, Title III, Book IV, Administrative Code of 1987) the Office of the Legal Staff - which is, in turn, mandated to, among others, assist the Secretary in the performance of his duties as Attorney General of the Philippines and as ex-officio legal adviser of governmentowned or controlled corporations or enterprises and their subsidiaries, and prepare and finally act for and in behalf of the Secretary on all queries and/or requests for legal advice or guidance coming from private parties, and minor officials and employees of the government (Section 7, Chapter 2) - is hereby advised that, henceforth, the Department shall retain only the following grounds for declining to render opinions:

1.      Issues posed have already been passed upon by the courts, Provided that the Department shall not decline rendering an opinion where, although related matters have already been passed upon by the courts, what is being sought from the Department is, for instance, an opinion on the implications of the courts' decision, and other similar matters;
2.    Issues that are subjudice;
3.    Issues the resolution of which properly pertains to the prosecuting officers;
4.    Issues raised by subordinate officials of other offices or agencies, Provided that the Department shall not decline rendering an opinion where there exists exceptional reasons to do so, such as the issue/s raised is/are of national interest or importance, or the subordinate official has raised other sufficient justification as to why his/her request for advice/opinion ought to be granted, including absence of other adequate recourse or remedy, etc.;
5.     Issues which are already moot and academic;
6.    Issues that do not involve specific legal issues but questions of facts or mixed questions of fact and law; and
7.     Issues which are purely hypothetical and speculative.

For compliance.


(signed)

LEILA M. DE LIMA
Secretary


X x x.”

"The Supreme Court must work with the President and Congress to overhaul the judiciary. The Supreme Court must also clear its clogged dockets to lead by example. Credibility is the name of the game."

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See - SC while ‘clogged’can’t lead by example | Inquirer Opinion


"x x x.

Philippine Daily Inquirer

August 14th, 2015 02:13 AM

This is in connection with former chief justice Artemio V. Panganiban’s column titled “Maguindanao massacre: acid test for justice system” (Opinion, 8/2/15).

The Philippine justice system has been notoriously known the world over as crawling very slowly like a snail that obviously defeats the cry for justice.

The irony of it all is that the Philippines is not lacking in intelligent, well-educated people—especially in government—to effect real judicial reforms. What keeps them from doing these reforms? Your guess is as good as mine.
Even before the now six-year-old Maguindanao massacre and the recent PNP SAF 44 massacre, there already was the 1983 Ninoy Aquino assassination.

Today, in 2015, or 32 long years later, the real masterminds remain unidentified.

Thus, no justice has been served the Aquino family. The eventual presidencies of Ninoy’s widow, Cory, and son, Noynoy, have not helped any in effecting real judicial reforms. The two administrations never bothered to initiate drastic reforms in the judiciary, and failed to closely coordinate and cooperate with Congress and the Supreme Court.

Meanwhile, the reforms initiated by the Supreme Court are all palliatives. The very much delayed—and frustrated—dispensation of justice in the Philippines today is a glaring proof of these palliatives.

If the Visiting Forces Agreement between the Philippines and the United States can mandate a one-year trial and decision, why can’t the Philippines adopt it? Complex cases or not.

Criminals and the corrupt in government and in the private sector have been taking advantage of the slow wheels of justice in the Philippines. They have been doing their crimes with impunity!

The Supreme Court must work with the President and Congress to overhaul the judiciary. The Supreme Court must also clear its clogged dockets to lead by example. Credibility is the name of the game.
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