1

EN BANC A)......18 USC 371 (Conspiracy to commit offense or to defraud the procedures and requirements under the relevant law and treaty
[G.R. No. 139465. January 18, 2000] United States; two [2] counts; Maximum Penalty 5 years on each have been complied with by the Requesting Government. The
SECRETARY OF JUSTICE, petitioner, vs. HON. RALPH C. LANTION, count); constitutionally guaranteed rights of the accused in all criminal
Presiding Judge, Regional Trial Court of Manila, Branch 25, and B)......26 USC 7201 (Attempt to evade or defeat tax; four [4] prosecutions are therefore not available.
MARK B. JIMENEZ, respondents. Esmso counts; Maximum Penalty 5 years on each count); It is only after the filing of the petition for extradition when the
DECISION C)......18 USC 1343 (Fraud by wire, radio, or television; two [2] person sought to be extradited will be furnished by the court with
MELO, J.: counts; Maximum Penalty 5 years on each count); copies of the petition, request and extradition documents and this
The individual citizen is but a speck of particle or molecule vis--vis D)......18 USC 1001 (False statement or entries; six [6] counts; Department will not pose any objection to a request for ample
the vast and overwhelming powers of government. His only Maximum Penalty 5 years on each count); time to evaluate said documents. Mesm
guarantee against oppression and tyranny are his fundamental E)......2 USC 441f (Election contributions in name of another; 2. The formal request for extradition of the United States contains
liberties under the Bill of Rights which shield him in times of need. thirty-three [33] counts; Maximum Penalty less than one year). grand jury information and documents obtained through grand
The Court is now called to decide whether to uphold a citizens (p. 14, Rollo.) jury process covered by strict secrecy rules under United States
basic due process rights, or the governments ironclad duties On the same day, petitioner issued Department Order No. 249 law. The United States had to secure orders from the concerned
under a treaty. The bugle sounds and this Court must once again designating and authorizing a panel of attorneys to take charge of District Courts authorizing the United States to disclose certain
act as the faithful guardian of the fundamental writ. and to handle the case pursuant to Section 5(1) of Presidential grand jury information to Philippine government and law
The petition at our doorstep is cast against the following factual Decree No. 1069. Accordingly, the panel began with the "technical enforcement personnel for the purpose of extradition of Mr.
backdrop: evaluation and assessment" of the extradition request and the Jimenez. Any further disclosure of the said information is not
On January 13, 1977, then President Ferdinand E. Marcos issued documents in support thereof. The panel found that the "official authorized by the United States District Courts. In this particular
Presidential Decree No. 1069 "Prescribing the Procedure for the English translation of some documents in Spanish were not extradition request the United States Government requested the
Extradition of Persons Who Have Committed Crimes in a Foreign attached to the request and that there are some other matters Philippine Government to prevent unauthorized disclosure of the
Country". The Decree is founded on: the doctrine of incorporation that needed to be addressed" (p. 15, Rollo). Calrky subject information. This Departments denial of your request is
under the Constitution; the mutual concern for the suppression of Pending evaluation of the aforestated extradition documents, consistent with Article 7 of the RP-US Extradition Treaty which
crime both in the state where it was committed and the state private respondent, through counsel, wrote a letter dated July 1, provides that the Philippine Government must represent the
where the criminal may have escaped; the extradition treaty with 1999 addressed to petitioner requesting copies of the official interests of the United States in any proceedings arising out of a
the Republic of Indonesia and the intention of the Philippines to extradition request from the U. S. Government, as well as all request for extradition. The Department of Justice under P.D. No.
enter into similar treaties with other interested countries; and the documents and papers submitted therewith; and that he be given 1069 is the counsel of the foreign governments in all extradition
need for rules to guide the executive department and the courts ample time to comment on the request after he shall have requests.
in the proper implementation of said treaties. received copies of the requested papers. Private respondent also 3. This Department is not in a position to hold in abeyance
On November 13, 1994, then Secretary of Justice Franklin M. requested that the proceedings on the matter be held in proceedings in connection with an extradition request. Article 26
Drilon, representing the Government of the Republic of the abeyance in the meantime. of the Vienna Convention on the Law of Treaties, to which we are
Philippines, signed in Manila the "Extradition Treaty Between the Later, private respondent requested that preliminarily, he be a party provides that "[E]very treaty in force is binding upon the
Government of the Republic of the Philippines and the given at least a copy of, or access to, the request of the United parties to it and must be performed by them in good faith".
Government of the United States of America" (hereinafter States Government, and after receiving a copy of the Diplomatic Extradition is a tool of criminal law enforcement and to be
referred to as the RP-US Extradition Treaty). The Senate, by way Note, a period of time to amplify on his request. effective, requests for extradition or surrender of accused or
of Resolution No. 11, expressed its concurrence in the ratification In response to private respondents July 1, 1999 letter, petitioner, convicted persons must be processed expeditiously.
of said treaty. It also expressed its concurrence in the Diplomatic in a reply-letter dated July 13, 1999 (but received by private (pp. 77-78, Rollo.)
Notes correcting Paragraph (5)(a), Article 7 thereof (on the respondent only on August 4, 1999), denied the foregoing Such was the state of affairs when, on August 6, 1999, private
admissibility of the documents accompanying an extradition requests for the following reasons: respondent filed with the Regional Trial Court of the National
request upon certification by the principal diplomatic or consular 1. We find it premature to furnish you with copies of the Capital Judicial Region a petition against the Secretary of Justice,
officer of the requested state resident in the Requesting extradition request and supporting documents from the United the Secretary of Foreign Affairs, and the Director of the National
State). Kycalr States Government, pending evaluation by this Department of the Bureau of Investigation, for mandamus (to compel herein
On June 18, 1999, the Department of Justice received from the sufficiency of the extradition documents submitted in accordance petitioner to furnish private respondent the extradition
Department of Foreign Affairs U. S. Note Verbale No. 0522 with the provisions of the extradition treaty and our extradition documents, to give him access thereto, and to afford him an
containing a request for the extradition of private respondent law. Article 7 of the Extradition Treaty between the Philippines opportunity to comment on, or oppose, the extradition request,
Mark Jimenez to the United States. Attached to the Note Verbale and the United States enumerates the documentary requirements and thereafter to evaluate the request impartially, fairly and
were the Grand Jury Indictment, the warrant of arrest issued by and establishes the procedures under which the documents objectively); certiorari (to set aside herein petitioners letter dated
the U.S. District Court, Southern District of Florida, and other submitted shall be received and admitted as evidence. Evidentiary July 13, 1999); and prohibition (to restrain petitioner from
supporting documents for said extradition. Based on the papers requirements under our domestic law are also set forth in Section considering the extradition request and from filing an extradition
submitted, private respondent appears to be charged in the 4 of P.D. No. 1069. petition in court; and to enjoin the Secretary of Foreign Affairs
United States with violation of the following provisions of the Evaluation by this Department of the aforementioned documents and the Director of the NBI from performing any act directed to
United States Code (USC): is not a preliminary investigation nor akin to preliminary the extradition of private respondent to the United States), with
investigation of criminal cases. We merely determine whether the
 2

an application for the issuance of a temporary restraining order PETITIONER WAS UNQUALIFIEDLY PREVENTED FROM To be sure, the issues call for a review of the extradition
and a writ of preliminary injunction (pp. 104-105, Rollo). Scslx PERFORMING LEGAL DUTIES UNDER THE EXTRADITION TREATY procedure. The RP-US Extradition Treaty which was executed only
The aforementioned petition was docketed as Civil Case No. 99- AND THE PHILIPPINE EXTRADITION LAW; on November 13, 1994, ushered into force the implementing
94684 and thereafter raffled to Branch 25 of said regional trial III. provisions of Presidential Decree No. 1069, also called as the
court stationed in Manila which is presided over by the Honorable THE PETITION FOR (MANDAMUS), CERTIORARI AND PROHIBITION Philippine Extradition Law. Section 2(a) thereof defines
Ralph C. Lantion. IS, ON ITS FACE, FORMALLY AND SUBSTANTIALLY DEFICIENT; AND extradition as "the removal of an accused from the Philippines
After due notice to the parties, the case was heard on August 9, IV. with the object of placing him at the disposal of foreign
1999. Petitioner, who appeared in his own behalf, moved that he PRIVATE RESPONDENT HAS NO RIGHT IN ESSE THAT NEEDS authorities to enable the requesting state or government to hold
be given ample time to file a memorandum, but the same was PROTECTION AND ENFORCEMENT, AND WILL NOT SUFFER ANY him in connection with any criminal investigation directed against
denied. IRREPARABLE INJURY. him or the execution of a penalty imposed on him under the penal
On August 10, 1999, respondent judge issued an order dated the (pp. 19-20, Rollo.) or criminal law of the requesting state or government." The
previous day, disposing: On August 17, 1999, the Court required private respondent to file portions of the Decree relevant to the instant case which involves
WHEREFORE, this Court hereby Orders the respondents, namely: his comment. Also issued, as prayed for, was a temporary a charged and not convicted individual, are abstracted as follows:
the Secretary of Justice, the Secretary of Foreign Affairs and the restraining order (TRO) providing: slx mis The Extradition Request
Director of the National Bureau of Investigation, their agents NOW, THEREFORE, effective immediately and continuing until The request is made by the Foreign Diplomat of the Requesting
and/or representatives to maintain the status quo by refraining further orders from this Court, You, Respondent Judge Ralph C. State, addressed to the Secretary of Foreign Affairs, and shall be
from committing the acts complained of; from conducting further Lantion, your agents, representatives or any person or persons accompanied by:
proceedings in connection with the request of the United States acting in your place or stead are hereby ORDERED to CEASE and 1. The original or an authentic copy of the criminal charge and the
Government for the extradition of the petitioner; from filing the DESIST from enforcing the assailed order dated August 9, 1999 warrant of arrest issued by the authority of the Requesting State
corresponding Petition with a Regional Trial court; and from issued by public respondent in Civil Case No. 99-94684. having jurisdiction over the matter, or some other instruments
performing any act directed to the extradition of the petitioner to GIVEN by the Honorable HILARIO G. DAVIDE, JR., Chief Justice, having equivalent legal force;
the United States, for a period of twenty (20) days from service on Supreme Court of the Philippines, this 17th day of August 1999. 2. A recital of the acts for which extradition is requested, with the
respondents of this Order, pursuant to Section 5, Rule 58 of the (pp. 120-121, Rollo.) fullest particulars as to the name and identity of the accused, his
1997 Rules of Court. The case was heard on oral argument on August 31, 1999, after whereabouts in the Philippines, if known, the acts or omissions
The hearing as to whether or not this Court shall issue the which the parties, as directed, filed their respective memoranda. complained of, and the time and place of the commission of these
preliminary injunction, as agreed upon by the counsels for the From the pleadings of the opposing parties, both procedural and acts; Sda adsc
parties herein, is set on August 17, 1999 at 9:00 oclock in the substantive issues are patent. However, a review of these issues 3. The text of the applicable law or a statement of the contents of
morning. The respondents are, likewise, ordered to file their as well as the extensive arguments of both parties, compel us to said law, and the designation or description of the offense by the
written comment and/or opposition to the issuance of a delineate the focal point raised by the pleadings: During the law, sufficient for evaluation of the request; and
Preliminary Injunction on or before said date. evaluation stage of the extradition proceedings, is private 4. Such other documents or information in support of the request.
SO ORDERED. respondent entitled to the two basic due process rights of notice (Section 4, Presidential Decree No. 1069.)
(pp. 110-111, Rollo.) and hearing? An affirmative answer would necessarily render the Section 5 of the Presidential Decree, which sets forth the duty of
Forthwith, petitioner initiated the instant proceedings, arguing proceedings at the trial court, moot and academic (the issues of the Secretary of Foreign Affairs, pertinently provides:
that: which are substantially the same as those before us now), while a . . . (1) Unless it appears to the Secretary of Foreign Affairs that
PUBLIC RESPONDENT ACTED WITHOUT OR IN EXCESS OF negative resolution would call for the immediate lifting of the TRO the request fails to meet the requirements of this law and the
JURISDICTION OR WITH GRAVE ABUSE OF DISCRETION issued by this Court dated August 24, 1999, thus allowing relevant treaty or convention, he shall forward the request
AMOUNTING TO LACK OR EXCESS OF JURISDICTION IN ISSUING petitioner to fast-track the process leading to the filing of the together with the related documents to the Secretary of Justice,
THE TEMPORARY RESTRAINING ORDER BECAUSE: Slxs c extradition petition with the proper regional trial court. who shall immediately designate and authorize an attorney in his
I. Corollarily, in the event that private respondent is adjudged office to take charge of the case.
BY ORDERING HEREIN PETITIONER TO REFRAIN FROM entitled to basic due process rights at the evaluation stage of the The above provision shows only too clearly that the executive
COMMITTING THE ACTS COMPLAINED OF, I. E., TO DESIST FROM extradition proceedings, would this entitlement constitute a authority given the task of evaluating the sufficiency of the
REFUSING PRIVATE RESPONDENT ACCESS TO THE OFFICIAL breach of the legal commitments and obligations of the Philippine request and the supporting documents is the Secretary of Foreign
EXTRADITION REQUEST AND DOCUMENTS AND FROM DENYING Government under the RP-US Extradition Treaty? And assuming Affairs. What then is the coverage of this task?
PRIVATE RESPONDENT AN OPPORTUNITY TO FILE A COMMENT that the result would indeed be a breach, is there any conflict In accordance with Paragraphs 2 and 3, Article 7 of the RP-US
ON, OR OPPOSITION TO, THE REQUEST, THE MAIN PRAYER FOR A between private respondents basic due process rights and the Extradition Treaty, the executive authority must ascertain
WRIT OF MANDAMUS IN THE PETITION FOR MANDAMUS, provisions of the RP-US Extradition Treaty? whether or not the request is supported by:
CERTIORARI AND PROHIBITION WAS, IN EFFECT, GRANTED SO AS The issues having transcendental importance, the Court has 1. Documents, statements, or other types of information which
TO CONSTITUTE AN ADJUDICATION ON THE MERITS OF THE elected to go directly into the substantive merits of the case, describe the identity and probable location of the person sought;
MANDAMUS ISSUES; brushing aside peripheral procedural matters which concern the 2. A statement of the facts of the offense and the procedural
II. proceedings in Civil Case No. 99-94684, particularly the propriety history of the case;
of the filing of the petition therein, and of the issuance of the TRO
of August 17, 1999 by the trial court. Missdaa
 3

3. A statement of the provisions of the law describing the hearing of the extradition petition, the provisions of the Rules of to evaluate the same to find out whether they comply with the
essential elements of the offense for which extradition is Court, insofar as practicable and not inconsistent with the requirements laid down in the Extradition Law and the RP-US
requested; summary nature of the proceedings, shall apply. During the Extradition Treaty. Petitioner ratiocinates in this connection that
4. A statement of the provisions of law describing the punishment hearing, Section 8 of the Decree provides that the attorney having although the Department of Justice had no obligation to evaluate
for the offense; Rtc spped charge of the case may, upon application by the Requesting State, the extradition documents, the Department also had to go over
5. A statement of the provisions of the law describing any time represent the latter throughout the proceedings. them so as to be able to prepare an extradition petition (tsn,
limit on the prosecution or the execution of punishment for the Upon conclusion of the hearing, the court shall render a decision August 31, 1999, pp. 24-25). Notably, it was also at this stage
offense; granting the extradition and giving the reasons therefor upon a where private respondent insisted on the following: (1) the right
6. Documents, statements, or other types of information specified showing of the existence of a prima facie case, or dismiss the to be furnished the request and the supporting papers; (2) the
in paragraph 3 or paragraph 4 of said Article, as applicable. petition (Section 10, ibid.). Said decision is appealable to the Court right to be heard which consists in having a reasonable period of
(Paragraph 2, Article 7, Presidential Decree No. 1069.) of Appeals, whose decision shall be final and immediately time to oppose the request, and to present evidence in support of
7. Such evidence as, according to the law of the Requested State, executory (Section 12, ibid.). The provisions of the Rules of Court the opposition; and (3) that the evaluation proceedings be held in
would provide probable cause for his arrest and committal for governing appeal in criminal cases in the Court of Appeals shall abeyance pending the filing of private respondent's opposition to
trial if the offense had been committed there; apply in the aforementioned appeal, except for the required 15- the request. Kyle
8. A copy of the warrant or order of arrest issued by a judge or day period to file brief (Section 13, ibid.). The two Departments seem to have misread the scope of their
other competent authority; and The trial court determines whether or not the offense mentioned duties and authority, one abdicating its powers and the other
9. A copy of the charging document. in the petition is extraditable based on the application of the dual enlarging its commission. The Department of Foreign Affairs,
(Paragraph 3, ibid.) criminality rule and other conditions mentioned in Article 2 of the moreover, has, through the Solicitor General, filed a
The executive authority (Secretary of Foreign Affairs) must also RP-US Extradition Treaty. The trial court also determines whether manifestation that it is adopting the instant petition as its own,
see to it that the accompanying documents received in support of or not the offense for which extradition is requested is a political indirectly conveying the message that if it were to evaluate the
the request had been certified by the principal diplomatic or one (Paragraph [1], Article 3, RP-US Extradition Treaty). extradition request, it would not allow private respondent to
consular officer of the Requested State resident in the Requesting With the foregoing abstract of the extradition proceedings as participate in the process of evaluation.
State (Embassy Note No. 052 from U. S. Embassy; Embassy Note backdrop, the following query presents itself: What is the nature Plainly then, the record cannot support the presumption of
No. 951309 from the Department of Foreign Affairs). of the role of the Department of Justice at the evaluation stage of regularity that the Department of Foreign Affairs thoroughly
In this light, Paragraph 3, Article 3 of the Treaty provides that the extradition proceedings? Sclaw reviewed the extradition request and supporting documents and
"[e]xtradition shall not be granted if the executive authority of the A strict observance of the Extradition Law indicates that the only that it arrived at a well-founded judgment that the request and its
Requested State determines that the request is politically duty of the Secretary of Justice is to file the extradition petition annexed documents satisfy the requirements of law. The
motivated, or that the offense is a military offense which is not after the request and all the supporting papers are forwarded to Secretary of Justice, eminent as he is in the field of law, could not
punishable under non-military penal legislation." him by the Secretary of Foreign Affairs. It is the latter official who privately review the papers all by himself. He had to officially
The Extradition Petition is authorized to evaluate the extradition papers, to assure their constitute a panel of attorneys. How then could the DFA Secretary
Upon a finding made by the Secretary of Foreign Affairs that the sufficiency, and under Paragraph [3], Article 3 of the Treaty, to or his undersecretary, in less than one day, make the more
extradition request and its supporting documents are sufficient determine whether or not the request is politically motivated, or authoritative determination?
and complete in form and substance, he shall deliver the same to that the offense is a military offense which is not punishable The evaluation process, just like the extradition proceedings
the Secretary of Justice, who shall immediately designate and under non-military penal legislation. Ipso facto, as expressly proper, belongs to a class by itself. It is sui generis. It is not a
authorize an attorney in his office to take charge of the case provided in Paragraph [1], Section 5 of the Extradition Law, the criminal investigation, but it is also erroneous to say that it is
(Paragraph [1], Section 5, P. D. No. 1069). The lawyer designated Secretary of Justice has the ministerial duty of filing the purely an exercise of ministerial functions. At such stage, the
shall then file a written petition with the proper regional trial extradition papers. executive authority has the power: (a) to make a technical
court of the province or city, with a prayer that the court take the However, looking at the factual milieu of the case before us, it assessment of the completeness and sufficiency of the extradition
extradition request under consideration (Paragraph would appear that there was failure to abide by the provisions of papers; (b) to outrightly deny the request if on its face and on the
[2], ibid.). Korte Presidential Decree No. 1069. For while it is true that the face of the supporting documents the crimes indicated are not
The presiding judge of the regional trial court, upon receipt of the extradition request was delivered to the Department of Foreign extraditable; and (c) to make a determination whether or not the
petition for extradition, shall, as soon as practicable, issue an Affairs on June 17, 1999, the following day or less than 24 hours request is politically motivated, or that the offense is a military
order summoning the prospective extraditee to appear and to later, the Department of Justice received the request, apparently one which is not punishable under non-military penal legislation
answer the petition on the day and hour fixed in the order. The without the Department of Foreign Affairs discharging its duty of (tsn, August 31, 1999, pp. 28-29; Article 2 & and Paragraph [3],
judge may issue a warrant of arrest if it appears that the thoroughly evaluating the same and its accompanying documents. Article 3, RP-US Extradition Treaty). Hence, said process may be
immediate arrest and temporary detention of the accused will The statement of an assistant secretary at the Department of characterized as an investigative or inquisitorial process in
best serve the ends of justice (Paragraph [1], Section 6, ibid.), Foreign Affairs that his Department, in this regard, is merely contrast to a proceeding conducted in the exercise of an
particularly to prevent the flight of the prospective extraditee. acting as a post office, for which reason he simply forwarded the administrative bodys quasi-judicial power. Ex sm
The Extradition Hearing request to the Department of Justice, indicates the magnitude of In administrative law, a quasi-judicial proceeding involves: (a)
The Extradition Law does not specifically indicate whether the the error of the Department of Foreign Affairs in taking lightly its taking and evaluation of evidence; (b) determining facts based
extradition proceeding is criminal, civil, or a special proceeding. responsibilities. Thereafter, the Department of Justice took it upon the evidence presented; and (c) rendering an order or
Nevertheless, Paragraph [1], Section 9 thereof provides that in the upon itself to determine the completeness of the documents and decision supported by the facts proved (De Leon, Administrative
 4

Law: Text and Cases, 1993 ed., p. 198, citing Morgan vs. United automatically discharged after 60 days if no request is submitted [1962]), where the Court, citing American jurisprudence, laid
States, 304 U.S. 1). Inquisitorial power, which is also known as (Paragraph 4). Presidential Decree No. 1069 provides for a shorter down the test to determine whether a proceeding is civil or
examining or investigatory power, is one of the determinative period of 20 days after which the arrested person could be criminal: If the proceeding is under a statute such that if an
powers of an administrative body which better enables it to discharged (Section 20[d]). Logically, although the Extradition Law indictment is presented the forfeiture can be included in the
exercise its quasi-judicial authority (Cruz, Phil. Administrative Law, is silent on this respect, the provisions only mean that once a criminal case, such proceeding is criminal in nature, although it
1996 ed., p. 26). This power allows the administrative body to request is forwarded to the Requested State, the prospective may be civil in form; and where it must be gathered from the
inspect the records and premises, and investigate the activities, of extraditee may be continuously detained, or if not, subsequently statute that the action is meant to be criminal in its nature, it
persons or entities coming under its jurisdiction (Ibid., p. 27), or to rearrested (Paragraph [5], Article 9, RP-US Extradition Treaty), for cannot be considered as civil. If, however, the proceeding does
require disclosure of information by means of accounts, records, he will only be discharged if no request is submitted. Practically, not involve the conviction of the wrongdoer for the offense
reports, testimony of witnesses, production of documents, or the purpose of this detention is to prevent his possible flight from charged, the proceeding is civil in nature. x law
otherwise (De Leon, op. cit., p. 64). the Requested State. Second, the temporary arrest of the The cases mentioned above refer to an impending threat of
The power of investigation consists in gathering, organizing, and prospective extraditee during the pendency of the extradition deprivation of ones property or property right. No less is this true,
analyzing evidence, which is a useful aid or tool in an petition in court (Section 6, Presidential Decree No. 1069). but even more so in the case before us, involving as it does the
administrative agencys performance of its rule-making or quasi- Clearly, there is an impending threat to a prospective extraditees possible deprivation of liberty, which, based on the hierarchy of
judicial functions. Notably, investigation is indispensable to liberty as early as during the evaluation stage. It is not only an constitutionally protected rights, is placed second only to life itself
prosecution. imagined threat to his liberty, but a very imminent one. Sc lex and enjoys precedence over property, for while forfeited property
In Ruperto v. Torres (100 Phil. 1098 [1957], unreported), the Court Because of these possible consequences, we conclude that the can be returned or replaced, the time spent in incarceration is
had occasion to rule on the functions of an investigatory body evaluation process is akin to an administrative agency conducting irretrievable and beyond recompense.
with the sole power of investigation. It does not exercise judicial an investigative proceeding, the consequences of which are By comparison, a favorable action in an extradition request
functions and its power is limited to investigating the facts and essentially criminal since such technical assessment sets off or exposes a person to eventual extradition to a foreign country,
making findings in respect thereto. The Court laid down the test commences the procedure for, and ultimately, the deprivation of thus saliently exhibiting the criminal or penal aspect of the
of determining whether an administrative body is exercising liberty of a prospective extraditee. As described by petitioner process. In this sense, the evaluation procedure is akin to a
judicial functions or merely investigatory functions: Adjudication himself, this is a "tool" for criminal law enforcement (p. 78, Rollo). preliminary investigation since both procedures may have the
signifies the exercise of power and authority to adjudicate upon In essence, therefore, the evaluation process partakes of the same result the arrest and imprisonment of the respondent or the
the rights and obligations of the parties before it. Hence, if the nature of a criminal investigation. In a number of cases, we had person charged. Similar to the evaluation stage of extradition
only purpose for investigation is to evaluate evidence submitted occasion to make available to a respondent in an administrative proceedings, a preliminary investigation, which may result in the
before it based on the facts and circumstances presented to it, case or investigation certain constitutional rights that are filing of an information against the respondent, can possibly lead
and if the agency is not authorized to make a final ordinarily available only in criminal prosecutions. Further, as to his arrest, and to the deprivation of his liberty.
pronouncement affecting the parties, then there is an absence of pointed out by Mr. Justice Mendoza during the oral arguments, Petitioners reliance on Wright vs. Court of Appeals (235 SCRA 241
judicial discretion and judgment. Mse sm there are rights formerly available only at the trial stage that had [1992]) (p. 8, Petitioners Memorandum) that the extradition
The above description in Ruperto applies to an administrative been advanced to an earlier stage in the proceedings, such as the treaty is neither a piece of criminal legislation nor a criminal
body authorized to evaluate extradition documents. The body has right to counsel and the right against self-incrimination (tsn, procedural statute is not well-taken. Wright is not authority for
no power to adjudicate in regard to the rights and obligations of August 31, 1999, p. 135;Escobedo vs. Illinois, 378 U.S. 478; Gideon petitioners conclusion that his preliminary processing is not akin
both the Requesting State and the prospective extraditee. Its only vs. Wainwright, 372 U.S. 335; Miranda vs. Arizona, 384 U.S. 436). to a preliminary investigation. The characterization of a treaty
power is to determine whether the papers comply with the In Pascual v. Board of Medical Examiners (28 SCRA 344 [1969]), in Wright was in reference to the applicability of the prohibition
requirements of the law and the treaty and, therefore, sufficient we held that the right against self-incrimination under Section 17, against an ex post facto law. It had nothing to do with the denial
to be the basis of an extradition petition. Such finding is thus Article III of the 1987 Constitution which is ordinarily available of the right to notice, information, and hearing.
merely initial and not final. The body has no power to determine only in criminal prosecutions, extends to administrative As early as 1884, the United States Supreme Court ruled that "any
whether or not the extradition should be effected. That is the role proceedings which possess a criminal or penal aspect, such as an legal proceeding enforced by public authority, whether
of the court. The bodys power is limited to an initial finding of administrative investigation of a licensed physician who is charged sanctioned by age or custom, or newly devised in the discretion of
whether or not the extradition petition can be filed in court. with immorality, which could result in his loss of the privilege to the legislative power, in furtherance of the general public good,
It is to be noted, however, that in contrast to ordinary practice medicine if found guilty. The Court, citing the earlier case which regards and preserves these principles of liberty and
investigations, the evaluation procedure is characterized by of Cabal vs. Kapunan (6 SCRA 1059 [1962]), pointed out that the justice, must be held to be due process of law" (Hurtado vs.
certain peculiarities. Primarily, it sets into motion the wheels of revocation of ones license as a medical practitioner, is an even California, 110 U.S. 516). Compliance with due process
the extradition process. Ultimately, it may result in the greater deprivation than forfeiture of property. requirements cannot be deemed non-compliance with treaty
deprivation of liberty of the prospective extraditee. This Cabal vs. Kapunan (supra) involved an administrative charge of commitments.
deprivation can be effected at two stages: First, the provisional unexplained wealth against a respondent which was filed under The United States and the Philippines share a mutual concern
arrest of the prospective extraditee pending the submission of the Republic Act No. 1379, or the Anti-Graft Law. Again, we therein about the suppression and punishment of crime in their
request. This is so because the Treaty provides that in case of ruled that since the investigation may result in forfeiture of respective jurisdictions. At the same time, both States accord
urgency, a contracting party may request the provisional arrest of property, the administrative proceedings are deemed criminal or common due process protection to their respective citizens. Sc
the person sought pending presentation of the request penal, and such forfeiture partakes the nature of a penalty. There The due process clauses in the American and Philippine
(Paragraph [1], Article 9, RP-US Extradition Treaty), but he shall be is also the earlier case of Almeda, Sr. vs. Perez (5 SCRA 970 Constitutions are not only worded in exactly identical language
 5

and terminology, but more importantly, they are alike in what are immediate threats to public health and decency, and the In international proceedings, extradition treaties generally
their respective Supreme Courts have expounded as the spirit cancellation of a passport of a person sought for criminal provide for the presentation to the executive authority of the
with which the provisions are informed and impressed, the prosecution; Requested State of a requisition or demand for the return of the
elasticity in their interpretation, their dynamic and resilient 2. Where there is tentativeness of administrative action, that is, alleged offender, and the designation of the particular officer
character which make them capable of meeting every modern where the respondent is not precluded from enjoying the right to having authority to act in behalf of the demanding nation (31A Am
problem, and their having been designed from earliest time to the notice and hearing at a later time without prejudice to the person Jur 2d 815).
present to meet the exigencies of an undefined and expanding affected, such as the summary distraint and levy of the property In petitioners memorandum filed on September 15, 1999, he
future. The requirements of due process are interpreted in both of a delinquent taxpayer, and the replacement of a temporary attached thereto a letter dated September 13, 1999 from the
the United States and the Philippines as not denying to the law appointee; and Criminal Division of the U.S. Department of Justice, summarizing
the capacity for progress and improvement. Toward this effect 3. Where the twin rights have previously been offered but the the U.S. extradition procedures and principles, which are basically
and in order to avoid the confines of a legal straitjacket, the right to exercise them had not been claimed. governed by a combination of treaties (with special reference to
courts instead prefer to have the meaning of the due process Applying the above principles to the case at bar, the query may be the RP-US Extradition Treaty), federal statutes, and judicial
clause "gradually ascertained by the process of inclusion and asked: Does the evaluation stage of the extradition proceedings decisions, to wit:
exclusion in the course of the decisions of cases as they arise" fall under any of the described situations mentioned above? 1. All requests for extradition are transmitted through the
(Twining vs. New Jersey, 211 U.S. 78). Capsulized, it refers to "the Let us take a brief look at the nature of American extradition diplomatic channel. In urgent cases, requests for the provisional
embodiment of the sporting idea of fair play" (Ermita-Malate proceedings which are quite noteworthy considering that the arrest of an individual may be made directly by the Philippine
Hotel and Motel Owners Association vs. City Mayor of Manila, 20 subject treaty involves the U.S. Government. Mis sc Department of Justice to the U.S. Department of Justice, and vice-
SCRA 849 [1967]). It relates to certain immutable principles of American jurisprudence distinguishes between interstate versa. In the event of a provisional arrest, a formal request for
justice which inhere in the very idea of free government (Holden rendition or extradition which is based on the Extradition Clause extradition is transmitted subsequently through the diplomatic
vs. Hardy, 169 U.S. 366). in the U.S. Constitution (Art. IV, 2 cl 2), and international channel.
Due process is comprised of two components substantive due extradition proceedings. In interstate rendition or extradition, the 2. The Department of State forwards the incoming Philippine
process which requires the intrinsic validity of the law in governor of the asylum state has the duty to deliver the fugitive extradition request to the Department of Justice. Before doing so,
interfering with the rights of the person to his life, liberty, or to the demanding state. The Extradition Clause and the the Department of State prepares a declaration confirming that a
property, and procedural due process which consists of the two implementing statute are given a liberal construction to carry out formal request has been made, that the treaty is in full force and
basic rights of notice and hearing, as well as the guarantee of their manifest purpose, which is to effect the return as swiftly as effect, that under Article 17 thereof the parties provide reciprocal
being heard by an impartial and competent tribunal (Cruz, possible of persons for trial to the state in which they have been legal representation in extradition proceedings, that the offenses
Constitutional Law, 1993 Ed., pp. 102-106). charged with crime (31A Am Jur 2d 754-755). In order to achieve are covered as extraditable offenses under Article 2 thereof, and
True to the mandate of the due process clause, the basic rights of extradition of an alleged fugitive, the requisition papers or the that the documents have been authenticated in accordance with
notice and hearing pervade not only in criminal and civil demand must be in proper form, and all the elements or the federal statute that ensures admissibility at any subsequent
proceedings, but in administrative proceedings as well. Non- jurisdictional facts essential to the extradition must appear on the extradition hearing.
observance of these rights will invalidate the proceedings. face of the papers, such as the allegation that the person 3. A judge or magistrate judge is authorized to issue a warrant for
Individuals are entitled to be notified of any pending case demanded was in the demanding state at the time the offense the arrest of the prospective extraditee (18 U.S.C. 3184). Said
affecting their interests, and upon notice, they may claim the right charged was committed, and that the person demanded is judge or magistrate is authorized to hold a hearing to consider the
to appear therein and present their side and to refute the position charged with the commission of the crime or that prosecution has evidence offered in support of the extradition request (Ibid.)
of the opposing parties (Cruz, Phil. Administrative Law, 1996 ed., been begun in the demanding state before some court or 4. At the hearing, the court must determine whether the person
p. 64). magistrate (35 C.J.S. 406-407). The extradition documents are arrested is extraditable to the foreign country. The court must
In a preliminary investigation which is an administrative then filed with the governor of the asylum state, and must contain also determine that (a) it has jurisdiction over the defendant and
investigatory proceeding, Section 3, Rule 112 of the Rules of Court such papers and documents prescribed by statute, which jurisdiction to conduct the hearing; (b) the defendant is being
guarantees the respondents basic due process rights, granting him essentially include a copy of the instrument charging the person sought for offenses for which the applicable treaty permits
the right to be furnished a copy of the complaint, the affidavits, demanded with a crime, such as an indictment or an affidavit extradition; and (c) there is probable cause to believe that the
and other supporting documents, and the right to submit counter- made before a magistrate. Statutory requirements with respect to defendant is the person sought and that he committed the
affidavits and other supporting documents within ten days from said charging instrument or papers are mandatory since said offenses charged (Ibid.) Spped
receipt thereof. Moreover, the respondent shall have the right to papers are necessary in order to confer jurisdiction on the 5. The judge or magistrate judge is vested with jurisdiction to
examine all other evidence submitted by the complainant. Scmis governor of the asylum state to effect the extradition certify extraditability after having received a "complaint made
These twin rights may, however, be considered dispensable in (35 C.J.S. 408-410). A statutory provision requiring duplicate under oath, charging any person found within his jurisdiction"
certain instances, such as: copies of the indictment, information, affidavit, or judgment of with having committed any of the crimes provided for by the
1. In proceedings where there is an urgent need for immediate conviction or sentence and other instruments accompanying the governing treaty in the country requesting extradition (Ibid.) [In
action, like the summary abatement of a nuisance per se (Article demand or requisitions be furnished and delivered to the fugitive this regard, it is noted that a long line of American decisions
704, Civil Code), the preventive suspension of a public servant or his attorney is directory. However, the right being such a basic pronounce that international extradition proceedings partake of
facing administrative charges (Section 63, Local Government one has been held to be a right mandatory on demand (Ibid., p. the character of a preliminary examination before a committing
Code, B. P. Blg. 337), the padlocking of filthy restaurants or 410, citing Ex parte Moore, 256 S.W. 2d 103, 158 Tex. Cr. 407 magistrate, rather than a trial of the guilt or innocence of the
theaters showing obscene movies or like establishments which and Ex parte Tucker, Cr., 324, S.W.2d 853). Mis spped alleged fugitive (31A Am Jur 2d 826).]
 6

6. If the court decides that the elements necessary for extradition In the Philippine context, this Courts ruling is invoked: abbreviated period of time due to its intricacies, how then can we
are present, it incorporates its determinations in factual findings One of the basic principles of the democratic system is that where say that it is a proceeding that urgently necessitates immediate
and conclusions of law and certifies the persons extraditability. the rights of the individual are concerned, the end does not justify and prompt action where notice and hearing can be dispensed
The court then forwards this certification of extraditability to the the means. It is not enough that there be a valid objective; it is with?
Department of State for disposition by the Secretary of State. The also necessary that the means employed to pursue it be in Worthy of inquiry is the issue of whether or not there is
ultimate decision whether to surrender an individual rests with keeping with the Constitution. Mere expediency will not excuse tentativeness of administrative action. Is private respondent
the Secretary of State (18 U.S.C. 3186). constitutional shortcuts. There is no question that not even the precluded from enjoying the right to notice and hearing at a later
7. The subject of an extradition request may not litigate questions strongest moral conviction or the most urgent public need, time without prejudice to him? Here lies the peculiarity and
concerning the motives of the requesting government in seeking subject only to a few notable exceptions, will excuse the deviant characteristic of the evaluation procedure. On one hand,
his extradition. However, a person facing extradition may present bypassing of an individuals rights. It is no exaggeration to say that there is yet no extraditee, but ironically on the other, it results in
whatever information he deems relevant to the Secretary of a person invoking a right guaranteed under Article III of the an administrative determination which, if adverse to the person
State, who makes the final determination whether to surrender Constitution is a majority of one even as against the rest of the involved, may cause his immediate incarceration. The grant of the
an individual to the foreign government concerned. nation who would deny him that right (Association of Small request shall lead to the filing of the extradition petition in court.
From the foregoing, it may be observed that in the United States, Landowners in the Philippines, Inc. vs. Secretary of Agrarian The "accused" (as Section 2[c] of Presidential Decree No. 1069
extradition begins and ends with one entity the Department of Reform, 175 SCRA 343, 375-376 [1989]). calls him), faces the threat of arrest, not only after the extradition
State which has the power to evaluate the request and the There can be no dispute over petitioners argument that petition is filed in court, but even during the evaluation
extradition documents in the beginning, and, in the person of the extradition is a tool of criminal law enforcement. To be effective, proceeding itself by virtue of the provisional arrest allowed under
Secretary of State, the power to act or not to act on the courts requests for extradition or the surrender of accused or convicted the treaty and the implementing law. The prejudice to the
determination of extraditability. In the Philippine setting, it is the persons must be processed expeditiously. Nevertheless, "accused" is thus blatant and manifest.
Department of Foreign Affairs which should make the initial accelerated or fast-tracked proceedings and adherence to fair Plainly, the notice and hearing requirements of administrative due
evaluation of the request, and having satisfied itself on the points procedures are, however, not always incompatible. They do not process cannot be dispensed with and shelved aside.
earlier mentioned (see pp. 10-12), then forwards the request to always clash in discord. Summary does not mean precipitous Apart from the due process clause of the Constitution, private
the Department of Justice for the preparation and filing of the haste. It does not carry a disregard of the basic principles inherent respondent likewise invokes Section 7 of Article III which
petition for extradition. Sadly, however, the Department of in "ordered liberty." Miso reads: Nex old
Foreign Affairs, in the instant case, perfunctorily turned over the Is there really an urgent need for immediate action at the Sec. 7. The right of the people to information on matters of public
request to the Department of Justice which has taken over the evaluation stage? At that point, there is no extraditee yet in the concern shall be recognized. Access to official records, and to
task of evaluating the request as well as thereafter, if so strict sense of the word. Extradition may or may not occur. In documents and papers pertaining to official acts, transactions, or
warranted, preparing, filing, and prosecuting the petition for interstate extradition, the governor of the asylum state may not, decisions, as well as to government research data used as basis
extradition. Jo spped in the absence of mandatory statute, be compelled to act for policy development, shall be afforded the citizen, subject to
Private respondent asks what prejudice will be caused to the U.S. favorably (37 C.J.S. 387) since after a close evaluation of the such limitations as may be provided by law.
Government should the person sought to be extradited be given extradition papers, he may hold that federal and statutory The above provision guarantees political rights which are available
due process rights by the Philippines in the evaluation stage. He requirements, which are significantly jurisdictional, have not been to citizens of the Philippines, namely: (1) the right to information
emphasizes that petitioners primary concern is the possible delay met (31 Am Jur 2d 819). Similarly, under an extradition treaty, the on matters of public concern, and (2) the corollary right of access
in the evaluation process. executive authority of the requested state has the power to deny to official records and documents. The general right guaranteed
We agree with private respondents citation of an American the behest from the requesting state. Accordingly, if after a by said provision is the right to information on matters of public
Supreme Court ruling: careful examination of the extradition documents the Secretary of concern. In its implementation, the right of access to official
The establishment of prompt efficacious procedures to achieve Foreign Affairs finds that the request fails to meet the records is likewise conferred. These cognate or related rights are
legitimate state ends is a proper state interest worthy of requirements of the law and the treaty, he shall not forward the "subject to limitations as may be provided by law" (Bernas, The
cognizance in constitutional adjudication. But the Constitution request to the Department of Justice for the filing of the 1987 Phil. Constitution A Reviewer-Primer, 1997 ed., p. 104) and
recognizes higher values than speed and efficiency. Indeed, one extradition petition since non-compliance with the aforesaid rely on the premise that ultimately it is an informed and critical
might fairly say of the Bill of Rights in general, and the Due requirements will not vest our government with jurisdiction to public opinion which alone can protect the values of democratic
Process Clause, in particular, that they were designed to protect effect the extradition. government (Ibid.).
the fragile values of a vulnerable citizenry from the overbearing In this light, it should be observed that the Department of Justice Petitioner argues that the matters covered by private respondents
concern for efficiency and efficacy that may characterize exerted notable efforts in assuring compliance with the letter-request dated July 1, 1999 do not fall under the guarantee
praiseworthy government officials no less, and perhaps more, requirements of the law and the treaty since it even informed the of the foregoing provision since the matters contained in the
than mediocre ones. U.S. Government of certain problems in the extradition papers documents requested are not of public concern. On the other
(Stanley vs. Illinois, 404 U.S. 645, 656) (such as those that are in Spanish and without the official English hand, private respondent argues that the distinction between
The United States, no doubt, shares the same interest as the translation, and those that are not properly authenticated). In matters vested with public interest and matters which are of
Philippine Government that no right that of liberty secured not fact, petitioner even admits that consultation meetings are still purely private interest only becomes material when a third
only by the Bills of Rights of the Philippines Constitution but of the supposed to take place between the lawyers in his Department person, who is not directly affected by the matters requested,
United States as well, is sacrificed at the altar of expediency. and those from the U.S. Justice Department. With the meticulous invokes the right to information. However, if the person invoking
(pp. 40-41, Private Respondents Memorandum.) Spped jo nature of the evaluation, which cannot just be completed in an
 7

the right is the one directly affected thereby, his right to First and foremost, let us categorically say that this is not the other. There is no occasion to choose which of the two should be
information becomes absolute. proper time to pass upon the constitutionality of the provisions of upheld. Instead, we see a void in the provisions of the RP-US
The concept of matters of public concern escapes exact definition. the RP-US Extradition Treaty nor the Extradition Law Extradition Treaty, as implemented by Presidential Decree No.
Strictly speaking, every act of a public officer in the conduct of the implementing the same. We limit ourselves only to the effect of 1069, as regards the basic due process rights of a prospective
governmental process is a matter of public concern (Bernas, The the grant of the basic rights of notice and hearing to private extraditee at the evaluation stage of extradition proceedings.
1987 Constitution of the Republic of the Philippines, 1996 ed., p. respondent on foreign relations. Maniks From the procedures earlier abstracted, after the filing of the
336). This concept embraces a broad spectrum of subjects which The rule of pacta sunt servanda, one of the oldest and most extradition petition and during the judicial determination of the
the public may want to know, either because these directly affect fundamental maxims of international law, requires the parties to propriety of extradition, the rights of notice and hearing are
their lives or simply because such matters arouse the interest of a treaty to keep their agreement therein in good faith. The clearly granted to the prospective extraditee. However, prior
an ordinary citizen (Legaspi v. Civil Service Commission, 150 SCRA observance of our country's legal duties under a treaty is also thereto, the law is silent as to these rights. Reference to the U.S.
530 [1987]). Hence, the real party in interest is the people and any compelled by Section 2, Article II of the Constitution which extradition procedures also manifests this silence.
citizen has "standing".Mani kx provides that "[t]he Philippines renounces war as an instrument Petitioner interprets this silence as unavailability of these rights.
When the individual himself is involved in official government of national policy, adopts the generally accepted principles of Consequently, he describes the evaluation procedure as an "ex
action because said action has a direct bearing on his life, and may international law as part of the law of the land, and adheres to parte technical assessment" of the sufficiency of the extradition
either cause him some kind of deprivation or injury, he actually the policy of peace, equality, justice, freedom, cooperation and request and the supporting documents.
invokes the basic right to be notified under Section 1 of the Bill of amity with all nations." Under the doctrine of incorporation, rules We disagree.
Rights and not exactly the right to information on matters of of international law form part of the law of the land and no In the absence of a law or principle of law, we must apply the
public concern. As to an accused in a criminal proceeding, he further legislative action is needed to make such rules applicable rules of fair play. An application of the basic twin due process
invokes Section 14, particularly the right to be informed of the in the domestic sphere (Salonga & Yap, Public International Law, rights of notice and hearing will not go against the treaty or the
nature and cause of the accusation against him. 1992 ed., p. 12). implementing law. Neither the Treaty nor the Extradition Law
The right to information is implemented by the right of access to The doctrine of incorporation is applied whenever municipal precludes these rights from a prospective extraditee. Similarly,
information within the control of the government (Bernas, The tribunals (or local courts) are confronted with situations in which American jurisprudence and procedures on extradition pose no
1987 Constitution of the Republic of the Philippines, 1996 ed., p. there appears to be a conflict between a rule of international law proscription. In fact, in interstate extradition proceedings as
337). Such information may be contained in official records, and and the provisions of the constitution or statute of the local state. explained above, the prospective extraditee may even request for
in documents and papers pertaining to official acts, transactions, Efforts should first be exerted to harmonize them, so as to give copies of the extradition documents from the governor of the
or decisions. effect to both since it is to be presumed that municipal law was asylum state, and if he does, his right to be supplied the same
In the case at bar, the papers requested by private respondent enacted with proper regard for the generally accepted principles becomes a demandable right (35 C.J.S. 410).
pertain to official government action from the U. S. Government. of international law in observance of the Incorporation Clause in Petitioner contends that the United States requested the
No official action from our country has yet been taken. Moreover, the above-cited constitutional provision (Cruz, Philippine Political Philippine Government to prevent unauthorized disclosure of
the papers have some relation to matters of foreign relations with Law, 1996 ed., p. 55). In a situation, however, where the conflict is confidential information. Hence, the secrecy surrounding the
the U. S. Government. Consequently, if a third party invokes this irreconcilable and a choice has to be made between a rule of action of the Department of Justice Panel of Attorneys. The
constitutional provision, stating that the extradition papers are international law and municipal law, jurisprudence dictates that confidentiality argument is, however, overturned by petitioners
matters of public concern since they may result in the extradition municipal law should be upheld by the municipal courts (Ichong revelation that everything it refuses to make available at this
of a Filipino, we are afraid that the balance must be tilted, at such vs. Hernandez, 101 Phil. 1155 [1957]; Gonzales vs. Hechanova, 9 stage would be obtainable during trial. The Department of Justice
particular time, in favor of the interests necessary for the proper SCRA 230 [1963]; In re: Garcia, 2 SCRA 984 [1961]) for the reason states that the U.S. District Court concerned has authorized the
functioning of the government. During the evaluation procedure, that such courts are organs of municipal law and are accordingly disclosure of certain grand jury information. If the information is
no official governmental action of our own government has as yet bound by it in all circumstances (Salonga & Yap, op. cit., p. 13). truly confidential, the veil of secrecy cannot be lifted at any stage
been done; hence the invocation of the right is premature. Later, The fact that international law has been made part of the law of of the extradition proceedings. Not even during trial. Oldmis o
and in contrast, records of the extradition hearing would already the land does not pertain to or imply the primacy of international A libertarian approach is thus called for under the premises.
fall under matters of public concern, because our government by law over national or municipal law in the municipal sphere. The One will search in vain the RP-US Extradition Treaty, the
then shall have already made an official decision to grant the doctrine of incorporation, as applied in most countries, decrees Extradition Law, as well as American jurisprudence and
extradition request. The extradition of a fellow Filipino would be that rules of international law are given equal standing with, but procedures on extradition, for any prohibition against the
forthcoming. are not superior to, national legislative enactments. Accordingly, conferment of the two basic due process rights of notice and
We now pass upon the final issue pertinent to the subject matter the principle lex posterior derogat priori takes effect a treaty may hearing during the evaluation stage of the extradition
of the instant controversy: Would private respondents repeal a statute and a statute may repeal a treaty. In states where proceedings. We have to consider similar situations in
entitlement to notice and hearing during the evaluation stage of the constitution is the highest law of the land, such as the jurisprudence for an application by analogy.
the proceedings constitute a breach of the legal duties of the Republic of the Philippines, both statutes and treaties may be Earlier, we stated that there are similarities between the
Philippine Government under the RP-Extradition Treaty? invalidated if they are in conflict with the constitution evaluation process and a preliminary investigation since both
Assuming the answer is in the affirmative, is there really a conflict (Ibid.). Manikan procedures may result in the arrest of the respondent or the
between the treaty and the due process clause in the In the case at bar, is there really a conflict between international prospective extraditee. In the evaluation process, a provisional
Constitution? law and municipal or national law? En contrario, these two arrest is even allowed by the Treaty and the Extradition Law
components of the law of the land are not pitted against each (Article 9, RP-US Extradition Treaty; Sec. 20, Presidential Decree
 8

No. 1069). Following petitioners theory, because there is no Decree No. 1707, although summary dismissals may be effected SO ORDERED.
provision of its availability, does this imply that for a period of without the necessity of a formal investigation, the minimum
time, the privilege of the writ of habeas corpus is suspended, requirements of due process still operate. As held in GSIS vs. Court
despite Section 15, Article III of the Constitution which states that of Appeals:
"[t]he privilege of the writ of habeas corpus shall not be ... [I]t is clear to us that what the opening sentence of Section 40
suspended except in cases of invasion or rebellion when the is saying is that an employee may be removed or dismissed even
public safety requires it"? Petitioners theory would also infer that without formal investigation, in certain instances. It is equally
bail is not available during the arrest of the prospective extraditee clear to us that an employee must be informed of the charges
when the extradition petition has already been filed in court since preferred against him, and that the normal way by which the
Presidential Decree No. 1069 does not provide therefor, employee is so informed is by furnishing him with a copy of the
notwithstanding Section 13, Article III of the Constitution which charges against him. This is a basic procedural requirement that a
provides that "[a]ll persons, except those charged with offenses statute cannot dispense with and still remain consistent with the
punishable by reclusion perpetua when evidence of guilt is strong, constitutional provision on due process. The second minimum
shall, before conviction, be bailable by sufficient sureties, or be requirement is that the employee charged with some misfeasance
released on recognizance as may be provided by law. The right to or malfeasance must have a reasonable opportunity to present his
bail shall not be impaired even when the privilege of the writ side of the matter, that is to say, his defenses against the charges
of habeas corpus is suspended " Can petitioner validly argue that levelled against him and to present evidence in support of his
since these contraventions are by virtue of a treaty and hence defenses. Ncmmis
affecting foreign relations, the aforestated guarantees in the Bill (at p. 671) EN BANC
of Rights could thus be subservient thereto? Ncm Said summary dismissal proceedings are also non-litigious in [G.R. No. 118295. May 2, 1997]
The basic principles of administrative law instruct us that "the nature, yet we upheld the due process rights of the respondent. WIGBERTO E. TAADA and ANNA DOMINIQUE COSETENG, as
essence of due process in administrative proceedings is an In the case at bar, private respondent does not only face a clear members of the Philippine Senate and as taxpayers; GREGORIO
opportunity to explain ones side or an opportunity to seek and present danger of loss of property or employment, but of ANDOLANA and JOKER ARROYO as members of the House of
reconsideration of the actions or ruling complained of (Mirano vs. liberty itself, which may eventually lead to his forcible banishment Representatives and as taxpayers; NICANOR P. PERLAS and
NLRC, 270 SCRA 96 [1997]; Padilla vs. NLRC, 273 SCRA 457 to a foreign land. The convergence of petitioners favorable action HORACIO R. MORALES, both as taxpayers; CIVIL LIBERTIES
[1997]; PLDT vs. NLRC, 276 SCRA 1 [1997]; Helpmate, Inc. vs. on the extradition request and the deprivation of private UNION, NATIONAL ECONOMIC PROTECTIONISM ASSOCIATION,
NLRC, 276 SCRA 315 [1997]; Aquinas School vs. Magnaye, 278 respondents liberty is easily comprehensible. CENTER FOR ALTERNATIVE DEVELOPMENT INITIATIVES, LIKAS-
SCRA 602 [1997]; Jamer vs. NLRC, 278 SCRA 632 [1997]). In We have ruled time and again that this Courts equity jurisdiction, KAYANG KAUNLARAN FOUNDATION, INC., PHILIPPINE RURAL
essence, procedural due process refers to the method or manner which is aptly described as "justice outside legality," may be RECONSTRUCTION MOVEMENT, DEMOKRATIKONG KILUSAN NG
by which the law is enforced (Corona vs. United Harbor Pilots availed of only in the absence of, and never against, statutory law MAGBUBUKID NG PILIPINAS, INC., and PHILIPPINE PEASANT
Association of the Phils., 283 SCRA 31 [1997]). This Court will not or judicial pronouncements (Smith Bell & Co., Inc. vs. Court of INSTITUTE, in representation of various taxpayers and as non-
tolerate the least disregard of constitutional guarantees in the Appeals, 267 SCRA 530 [1997]; David-Chan vs. Court of Appeals, governmental organizations, petitioners, vs. EDGARDO ANGARA,
enforcement of a law or treaty. Petitioners fears that the 268 SCRA 677 [1997]). The constitutional issue in the case at bar ALBERTO ROMULO, LETICIA RAMOS-SHAHANI, HEHERSON
Requesting State may have valid objections to the Requested does not even call for "justice outside legality," since private ALVAREZ, AGAPITO AQUINO, RODOLFO BIAZON, NEPTALI
States non-performance of its commitments under the Extradition respondents due process rights, although not guaranteed by GONZALES, ERNESTO HERRERA, JOSE LINA, GLORIA
Treaty are insubstantial and should not be given paramount statute or by treaty, are protected by constitutional guarantees. MACAPAGAL-ARROYO, ORLANDO MERCADO, BLAS OPLE, JOHN
consideration. We would not be true to the organic law of the land if we choose OSMEA, SANTANINA RASUL, RAMON REVILLA, RAUL ROCO,
How then do we implement the RP-US Extradition Treaty? Do we strict construction over guarantees against the deprivation of FRANCISCO TATAD and FREDDIE WEBB, in their respective
limit ourselves to the four corners of Presidential Decree No. liberty. That would not be in keeping with the principles of capacities as members of the Philippine Senate who concurred
1069? democracy on which our Constitution is premised. in the ratification by the President of the Philippines of the
Of analogous application are the rulings in Government Service Verily, as one traverses treacherous waters of conflicting and Agreement Establishing the World Trade Organization;
Insurance System vs. Court of Appeals (201 SCRA 661 [1991]) opposing currents of liberty and government authority, he must SALVADOR ENRIQUEZ, in his capacity as Secretary of Budget and
and Go vs. National Police Commission (271 SCRA 447 [1997]) ever hold the oar of freedom in the stronger arm, lest an errant Management; CARIDAD VALDEHUESA, in her capacity as
where we ruled that in summary proceedings under Presidential and wayward course be laid. National Treasurer; RIZALINO NAVARRO, in his capacity as
Decree No. 807 (Providing for the Organization of the Civil Service WHEREFORE, in view of the foregoing premises, the instant Secretary of Trade and Industry; ROBERTO SEBASTIAN, in his
Commission in Accordance with Provisions of the Constitution, petition is hereby DISMISSED for lack of merit. Petitioner is capacity as Secretary of Agriculture; ROBERTO DE OCAMPO, in
Prescribing its Powers and Functions and for Other Purposes), and ordered to furnish private respondent copies of the extradition his capacity as Secretary of Finance; ROBERTO ROMULO, in his
Presidential Decree No. 971 (Providing Legal Assistance for request and its supporting papers, and to grant him a reasonable capacity as Secretary of Foreign Affairs; and TEOFISTO T.
Members of the Integrated National Police who may be charged period within which to file his comment with supporting evidence. GUINGONA, in his capacity as Executive Secretary, respondents.
for Service-Connected Offenses and Improving the Disciplinary The incidents in Civil Case No. 99-94684 having been rendered DECISION
System in the Integrated National Police, Appropriating Funds moot and academic by this decision, the same is hereby ordered PANGANIBAN, J.:
Therefor and for other purposes), as amended by Presidential dismissed.
 9

The emergence on January 1, 1995 of the World Trade more investments into the country. Although the Chief Executive On August 12, 1994, the members of the Philippine Senate
Organization, abetted by the membership thereto of the vast did not expressly mention it in his letter, the Philippines - - and received a letter dated August 11, 1994 from the President of the
majority of countries has revolutionized international business this is of special interest to the legal profession - - will benefit Philippines,[3] stating among others that the Uruguay Round Final
and economic relations amongst states. It has irreversibly from the WTO system of dispute settlement by judicial Act is hereby submitted to the Senate for its concurrence
propelled the world towards trade liberalization and economic adjudication through the independent WTO settlement bodies pursuant to Section 21, Article VII of the Constitution.
globalization. Liberalization, globalization, deregulation and called (1) Dispute Settlement Panels and (2) Appellate On August 13, 1994, the members of the Philippine Senate
privatization, the third-millennium buzz words, are ushering in a Tribunal.Heretofore, trade disputes were settled mainly through received another letter from the President of the
new borderless world of business by sweeping away as mere negotiations where solutions were arrived at frequently on the Philippines[4] likewise dated August 11, 1994, which stated among
historical relics the heretofore traditional modes of promoting basis of relative bargaining strengths, and where naturally, weak others that the Uruguay Round Final Act, the Agreement
and protecting national economies like tariffs, export subsidies, and underdeveloped countries were at a disadvantage. Establishing the World Trade Organization, the Ministerial
import quotas, quantitative restrictions, tax exemptions and The Petition in Brief Declarations and Decisions, and the Understanding on
currency controls. Finding market niches and becoming the best in Arguing mainly (1) that the WTO requires the Philippines to place Commitments in Financial Services are hereby submitted to the
specific industries in a market-driven and export-oriented global nationals and products of member-countries on the same footing Senate for its concurrence pursuant to Section 21, Article VII of
scenario are replacing age-old beggar-thy-neighbor policies that as Filipinos and local products and (2) that the WTO intrudes, the Constitution.
unilaterally protect weak and inefficient domestic producers of limits and/or impairs the constitutional powers of both Congress On December 9, 1994, the President of the Philippines certified
goods and services. In the words of Peter Drucker, the well-known and the Supreme Court, the instant petition before this Court the necessity of the immediate adoption of P.S. 1083, a resolution
management guru, Increased participation in the world economy assails the WTO Agreement for violating the mandate of the 1987 entitled Concurring in the Ratification of the Agreement
has become the key to domestic economic growth and prosperity. Constitution to develop a self-reliant and independent national Establishing the World Trade Organization.[5]
Brief Historical Background economy effectively controlled by Filipinos x x x (to) give On December 14, 1994, the Philippine Senate adopted Resolution
To hasten worldwide recovery from the devastation wrought by preference to qualified Filipinos (and to) promote the preferential No. 97 which Resolved, as it is hereby resolved, that the Senate
the Second World War, plans for the establishment of three use of Filipino labor, domestic materials and locally produced concur, as it hereby concurs, in the ratification by the President of
multilateral institutions -- inspired by that grand political body, goods. the Philippines of the Agreement Establishing the World Trade
the United Nations -- were discussed at Dumbarton Oaks and Simply stated, does the Philippine Constitution prohibit Philippine Organization.[6] The text of the WTO Agreement is written on
Bretton Woods. The first was the World Bank (WB) which was to participation in worldwide trade liberalization and economic pages 137 et seq. of Volume I of the 36-volume Uruguay Round of
address the rehabilitation and reconstruction of war-ravaged and globalization? Does it prescribe Philippine integration into a global Multilateral Trade Negotiations and includes various agreements
later developing countries; the second, the International economy that is liberalized, deregulated and privatized? These are and associated legal instruments (identified in the said Agreement
Monetary Fund (IMF) which was to deal with currency problems; the main questions raised in this petition for certiorari, prohibition as Annexes 1, 2 and 3 thereto and collectively referred to as
and the third, the International Trade Organization (ITO), which and mandamus under Rule 65 of the Rules of Court praying (1) for Multilateral Trade Agreements, for brevity) as follows:
was to foster order and predictability in world trade and to the nullification, on constitutional grounds, of the concurrence of ANNEX 1
minimize unilateral protectionist policies that invite challenge, the Philippine Senate in the ratification by the President of the Annex 1A: Multilateral Agreement on Trade in Goods
even retaliation, from other states. However, for a variety of Philippines of the Agreement Establishing the World Trade General Agreement on Tariffs and Trade 1994
reasons, including its non-ratification by the United States, the Organization (WTO Agreement, for brevity) and (2) for the Agreement on Agriculture
ITO, unlike the IMF and WB, never took off. What remained was prohibition of its implementation and enforcement through the Agreement on the Application of Sanitary and
only GATT -- the General Agreement on Tariffs and Trade. GATT release and utilization of public funds, the assignment of public Phytosanitary Measures
was a collection of treaties governing access to the economies of officials and employees, as well as the use of government Agreement on Textiles and Clothing
treaty adherents with no institutionalized body administering the properties and resources by respondent-heads of various Agreement on Technical Barriers to Trade
agreements or dependable system of dispute settlement. executive offices concerned therewith. This concurrence is Agreement on Trade-Related Investment Measures
After half a century and several dizzying rounds of negotiations, embodied in Senate Resolution No. 97, dated December 14, 1994. Agreement on Implementation of Article VI of the General
principally the Kennedy Round, the Tokyo Round and the Uruguay The Facts Agreement on Tariffs and Trade 1994
Round, the world finally gave birth to that administering body -- On April 15, 1994, Respondent Rizalino Navarro, then Secretary of Agreement on Implementation of Article VII of the General on
the World Trade Organization -- with the signing of the Final Act in the Department of Trade and Industry (Secretary Navarro, for Tariffs and Trade 1994
Marrakesh, Morocco and the ratification of the WTO Agreement brevity), representing the Government of the Republic of the Agreement on Pre-Shipment Inspection
by its members.[1] Philippines, signed in Marrakesh, Morocco, the Final Act Agreement on Rules of Origin
Like many other developing countries, the Philippines joined WTO Embodying the Results of the Uruguay Round of Multilateral Agreement on Imports Licensing Procedures
as a founding member with the goal, as articulated by President Negotiations (Final Act, for brevity). Agreement on Subsidies and Coordinating Measures
Fidel V. Ramos in two letters to the Senate (infra), of improving By signing the Final Act,[2] Secretary Navarro on behalf of the Agreement on Safeguards
Philippine access to foreign markets, especially its major trading Republic of the Philippines, agreed: Annex 1B: General Agreement on Trade in Services and Annexes
partners, through the reduction of tariffs on its exports, (a) to submit, as appropriate, the WTO Agreement for the Annex 1C: Agreement on Trade-Related Aspects of Intellectual
particularly agricultural and industrial products. The consideration of their respective competent authorities, with a Property Rights
President also saw in the WTO the opening of new opportunities view to seeking approval of the Agreement in accordance with ANNEX 2
for the services sector x x x, (the reduction of) costs and their procedures; and Understanding on Rules and Procedures Governing the
uncertainty associated with exporting x x x, and (the attraction of) (b) to adopt the Ministerial Declarations and Decisions. Settlement of Disputes
 10

ANNEX 3 sovereignty and (2) copies of the multi-volume WTO Agreement undermine the letter, spirit and intent of Section 19, Article II and
Trade Policy Review Mechanism and other documents mentioned in the Final Act, as soon as Sections 10 and 12, Article XII of the 1987 Constitution.
On December 16, 1994, the President of the Philippines possible. 2. Whether or not certain provisions of the Agreement unduly
signed[7] the Instrument of Ratification, declaring: After receipt of the foregoing documents, the Court said it would limit, restrict or impair the exercise of legislative power by
NOW THEREFORE, be it known that I, FIDEL V. RAMOS, President consider the case submitted for resolution. In a Compliance dated Congress.
of the Republic of the Philippines, after having seen and September 16, 1996, the Solicitor General submitted a printed 3. Whether or not certain provisions of the Agreement impair the
considered the aforementioned Agreement Establishing the copy of the 36-volume Uruguay Round of Multilateral Trade exercise of judicial power by this Honorable Court in promulgating
World Trade Organization and the agreements and associated Negotiations, and in another Compliance dated October 24, 1996, the rules of evidence.
legal instruments included in Annexes one (1), two (2) and three he listed the various bilateral or multilateral treaties or 4. Whether or not the concurrence of the Senate in the
(3) of that Agreement which are integral parts thereof, signed at international instruments involving derogation of Philippine ratification by the President of the Philippines of the Agreement
Marrakesh, Morocco on 15 April 1994, do hereby ratify and sovereignty. Petitioners, on the other hand, submitted their establishing the World Trade Organization implied rejection of the
confirm the same and every Article and Clause thereof. Compliance dated January 28, 1997, on January 30, 1997. treaty embodied in the Final Act.
To emphasize, the WTO Agreement ratified by the President of The Issues By raising and arguing only four issues against the seven
the Philippines is composed of the Agreement Proper and the In their Memorandum dated March 11, 1996, petitioners presented by petitioners, the Solicitor General has effectively
associated legal instruments included in Annexes one (1), two (2) summarized the issues as follows: ignored three, namely: (1) whether the petition presents a
and three (3) of that Agreement which are integral parts thereof. A. Whether the petition presents a political question or is political question or is otherwise not justiciable; (2) whether
On the other hand, the Final Act signed by Secretary Navarro otherwise not justiciable. petitioner-members of the Senate (Wigberto E. Taada and Anna
embodies not only the WTO Agreement (and its integral annexes B. Whether the petitioner members of the Senate who Dominique Coseteng) are estopped from joining this suit; and (3)
aforementioned) but also (1) the Ministerial Declarations and participated in the deliberations and voting leading to the whether the respondent-members of the Senate acted in grave
Decisions and (2) the Understanding on Commitments in Financial concurrence are estopped from impugning the validity of the abuse of discretion when they voted for concurrence in the
Services. In his Memorandum dated May 13, 1996,[8] the Solicitor Agreement Establishing the World Trade Organization or of the ratification of the WTO Agreement. The foregoing
General describes these two latter documents as follows: validity of the concurrence. notwithstanding, this Court resolved to deal with these three
The Ministerial Decisions and Declarations are twenty-five C. Whether the provisions of the Agreement Establishing the issues thus:
declarations and decisions on a wide range of matters, such as World Trade Organization contravene the provisions of Sec. 19, (1) The political question issue -- being very fundamental and
measures in favor of least developed countries, notification Article II, and Secs. 10 and 12, Article XII, all of the 1987 Philippine vital, and being a matter that probes into the very jurisdiction of
procedures, relationship of WTO with the International Monetary Constitution. this Court to hear and decide this case -- was deliberated upon by
Fund (IMF), and agreements on technical barriers to trade and on D. Whether provisions of the Agreement Establishing the World the Court and will thus be ruled upon as the first issue;
dispute settlement. Trade Organization unduly limit, restrict and impair Philippine (2) The matter of estoppel will not be taken up because this
The Understanding on Commitments in Financial Services dwell sovereignty specifically the legislative power which, under Sec. 2, defense is waivable and the respondents have effectively waived
on, among other things, standstill or limitations and qualifications Article VI, 1987 Philippine Constitution is vested in the Congress it by not pursuing it in any of their pleadings; in any event, this
of commitments to existing non-conforming measures, market of the Philippines; issue, even if ruled in respondents favor, will not cause the
access, national treatment, and definitions of non-resident E. Whether provisions of the Agreement Establishing the World petitions dismissal as there are petitioners other than the two
supplier of financial services, commercial presence and new Trade Organization interfere with the exercise of judicial power. senators, who are not vulnerable to the defense of estoppel; and
financial service. F. Whether the respondent members of the Senate acted in grave (3) The issue of alleged grave abuse of discretion on the part of
On December 29, 1994, the present petition was filed. After abuse of discretion amounting to lack or excess of jurisdiction the respondent senators will be taken up as an integral part of the
careful deliberation on respondents comment and petitioners when they voted for concurrence in the ratification of the disposition of the four issues raised by the Solicitor General.
reply thereto, the Court resolved on December 12, 1995, to give constitutionally-infirm Agreement Establishing the World Trade During its deliberations on the case, the Court noted that the
due course to the petition, and the parties thereafter filed their Organization. respondents did not question the locus standi of
respective memoranda. The Court also requested the Honorable G. Whether the respondent members of the Senate acted in grave petitioners. Hence, they are also deemed to have waived the
Lilia R. Bautista, the Philippine Ambassador to the United Nations abuse of discretion amounting to lack or excess of jurisdiction benefit of such issue. They probably realized that grave
stationed in Geneva, Switzerland, to submit a paper, hereafter when they concurred only in the ratification of the Agreement constitutional issues, expenditures of public funds and serious
referred to as Bautista Paper,[9] for brevity, (1) providing a Establishing the World Trade Organization, and not with the international commitments of the nation are involved here, and
historical background of and (2) summarizing the said Presidential submission which included the Final Act, Ministerial that transcendental public interest requires that the substantive
agreements. Declaration and Decisions, and the Understanding on issues be met head on and decided on the merits, rather than
During the Oral Argument held on August 27, 1996, the Court Commitments in Financial Services. skirted or deflected by procedural matters.[11]
directed: On the other hand, the Solicitor General as counsel for To recapitulate, the issues that will be ruled upon shortly are:
(a) the petitioners to submit the (1) Senate Committee Report on respondents synthesized the several issues raised by petitioners (1) DOES THE PETITION PRESENT A JUSTICIABLE
the matter in controversy and (2) the transcript of into the following:[10] CONTROVERSY? OTHERWISE STATED, DOES THE PETITION
proceedings/hearings in the Senate; and 1. Whether or not the provisions of the Agreement Establishing INVOLVE A POLITICAL QUESTION OVER WHICH THIS COURT HAS
(b) the Solicitor General, as counsel for respondents, to file (1) a the World Trade Organization and the Agreements and Associated NO JURISDICTION?
list of Philippine treaties signed prior to the Philippine adherence Legal Instruments included in Annexes one (1), two (2) and three
to the WTO Agreement, which derogate from Philippine (3) of that agreement cited by petitioners directly contravene or
 11

(2) DO THE PROVISIONS OF THE WTO AGREEMENT AND ITS THREE committed by any officer, agency, instrumentality or department Sec. 12. The State shall promote the preferential use of Filipino
ANNEXES CONTRAVENE SEC. 19, ARTICLE II, AND SECS. 10 AND 12, of the government. labor, domestic materials and locally produced goods, and adopt
ARTICLE XII, OF THE PHILIPPINE CONSTITUTION? As the petition alleges grave abuse of discretion and as there is no measures that help make them competitive.
(3) DO THE PROVISIONS OF SAID AGREEMENT AND ITS ANNEXES other plain, speedy or adequate remedy in the ordinary course of Petitioners aver that these sacred constitutional principles are
LIMIT, RESTRICT, OR IMPAIR THE EXERCISE OF LEGISLATIVE law, we have no hesitation at all in holding that this petition desecrated by the following WTO provisions quoted in their
POWER BY CONGRESS? should be given due course and the vital questions raised therein memorandum:[19]
(4) DO SAID PROVISIONS UNDULY IMPAIR OR INTERFERE WITH ruled upon under Rule 65 of the Rules of Court. Indeed, certiorari, a) In the area of investment measures related to trade in goods
THE EXERCISE OF JUDICIAL POWER BY THIS COURT IN prohibition and mandamus are appropriate remedies to raise (TRIMS, for brevity):
PROMULGATING RULES ON EVIDENCE? constitutional issues and to review and/or prohibit/nullify, when Article 2
(5) WAS THE CONCURRENCE OF THE SENATE IN THE WTO proper, acts of legislative and executive officials. On this, we have National Treatment and Quantitative Restrictions.
AGREEMENT AND ITS ANNEXES SUFFICIENT AND/OR VALID, no equivocation. 1. Without prejudice to other rights and obligations under GATT
CONSIDERING THAT IT DID NOT INCLUDE THE FINAL ACT, We should stress that, in deciding to take jurisdiction over this 1994. no Member shall apply any TRIM that is inconsistent with
MINISTERIAL DECLARATIONS AND DECISIONS, AND THE petition, this Court will not review the wisdom of the decision of the provisions of Article III or Article XI of GATT 1994.
UNDERSTANDING ON COMMITMENTS IN FINANCIAL SERVICES? the President and the Senate in enlisting the country into the 2. An Illustrative list of TRIMS that are inconsistent with the
The First Issue: Does the Court Have Jurisdiction Over the WTO, or pass upon the merits of trade liberalization as a policy obligations of general elimination of quantitative restrictions
Controversy? espoused by said international body. Neither will it rule on provided for in paragraph I of Article XI of GATT 1994 is contained
In seeking to nullify an act of the Philippine Senate on the ground the propriety of the governments economic policy of in the Annex to this Agreement. (Agreement on Trade-Related
that it contravenes the Constitution, the petition no doubt raises a reducing/removing tariffs, taxes, subsidies, quantitative Investment Measures, Vol. 27, Uruguay Round, Legal Instruments,
justiciable controversy. Where an action of the legislative branch restrictions, and other import/trade barriers. Rather, it will only p.22121, emphasis supplied).
is seriously alleged to have infringed the Constitution, it becomes exercise its constitutional duty to determine whether or not there The Annex referred to reads as follows:
not only the right but in fact the duty of the judiciary to settle the had been a grave abuse of discretion amounting to lack or excess ANNEX
dispute. The question thus posed is judicial rather than of jurisdiction on the part of the Senate in ratifying the WTO Illustrative List
political. The duty (to adjudicate) remains to assure that the Agreement and its three annexes. 1. TRIMS that are inconsistent with the obligation of national
supremacy of the Constitution is upheld.[12] Once a controversy as Second Issue: The WTO Agreement and Economic Nationalism treatment provided for in paragraph 4 of Article III of GATT 1994
to the application or interpretation of a constitutional provision is This is the lis mota, the main issue, raised by the petition. include those which are mandatory or enforceable under
raised before this Court (as in the instant case), it becomes a legal Petitioners vigorously argue that the letter, spirit and intent of the domestic law or under administrative rulings, or compliance
issue which the Court is bound by constitutional mandate to Constitution mandating economic nationalism are violated by the with which is necessary to obtain an advantage, and which
decide.[13] so-called parity provisions and national treatment clauses require:
The jurisdiction of this Court to adjudicate the matters[14] raised in scattered in various parts not only of the WTO Agreement and its (a) the purchase or use by an enterprise of products of domestic
the petition is clearly set out in the 1987 Constitution,[15] as annexes but also in the Ministerial Decisions and Declarations and origin or from any domestic source, whether specified in terms of
follows: in the Understanding on Commitments in Financial Services. particular products, in terms of volume or value of products, or in
Judicial power includes the duty of the courts of justice to settle Specifically, the flagship constitutional provisions referred to are terms of proportion of volume or value of its local production; or
actual controversies involving rights which are legally demandable Sec. 19, Article II, and Secs. 10 and 12, Article XII, of the (b) that an enterprises purchases or use of imported products be
and enforceable, and to determine whether or not there has been Constitution, which are worded as follows: limited to an amount related to the volume or value of local
a grave abuse of discretion amounting to lack or excess of Article II products that it exports.
jurisdiction on the part of any branch or instrumentality of the DECLARATION OF PRINCIPLES AND STATE POLICIES 2. TRIMS that are inconsistent with the obligations of general
government. xx xx xx xx elimination of quantitative restrictions provided for in paragraph
The foregoing text emphasizes the judicial departments duty and Sec. 19. The State shall develop a self-reliant and independent 1 of Article XI of GATT 1994 include those which are mandatory or
power to strike down grave abuse of discretion on the part of any national economy effectively controlled by Filipinos. enforceable under domestic laws or under administrative rulings,
branch or instrumentality of government including Congress. It is xx xx xx xx or compliance with which is necessary to obtain an advantage,
an innovation in our political law.[16] As explained by former Chief Article XII and which restrict:
Justice Roberto Concepcion,[17] the judiciary is the final arbiter on NATIONAL ECONOMY AND PATRIMONY (a) the importation by an enterprise of products used in or related
the question of whether or not a branch of government or any of xx xx xx xx to the local production that it exports;
its officials has acted without jurisdiction or in excess of Sec. 10. x x x. The Congress shall enact measures that will (b) the importation by an enterprise of products used in or related
jurisdiction or so capriciously as to constitute an abuse of encourage the formation and operation of enterprises whose to its local production by restricting its access to foreign exchange
discretion amounting to excess of jurisdiction. This is not only a capital is wholly owned by Filipinos. inflows attributable to the enterprise; or
judicial power but a duty to pass judgment on matters of this In the grant of rights, privileges, and concessions covering the (c) the exportation or sale for export specified in terms of
nature. national economy and patrimony, the State shall give preference particular products, in terms of volume or value of products, or in
As this Court has repeatedly and firmly emphasized in many to qualified Filipinos. terms of a preparation of volume or value of its local
cases,[18] it will not shirk, digress from or abandon its sacred duty xx xx xx xx production. (Annex to the Agreement on Trade-Related
and authority to uphold the Constitution in matters that involve Investment Measures, Vol. 27, Uruguay Round Legal Documents,
grave abuse of discretion brought before it in appropriate cases, p.22125, emphasis supplied).
 12

The paragraph 4 of Article III of GATT 1994 referred to is quoted with its obligations as provided in the annexed The reasons for denying a cause of action to an alleged
as follows: agreements.[20] Petitioners further argue that these provisions infringement of broad constitutional principles are sourced from
The products of the territory of any contracting party imported contravene constitutional limitations on the role exports play in basic considerations of due process and the lack of judicial
into the territory of any other contracting party shall be accorded national development and negate the preferential treatment authority to wade into the uncharted ocean of social and
treatment no less favorable than that accorded to like products accorded to Filipino labor, domestic materials and locally economic policy making. Mr. Justice Florentino P. Feliciano in his
of national origin in respect of laws, regulations and requirements produced goods. concurring opinion in Oposa vs. Factoran, Jr.,[26] explained these
affecting their internal sale, offering for sale, purchase, On the other hand, respondents through the Solicitor General reasons as follows:
transportation, distribution or use. the provisions of this counter (1) that such Charter provisions are not self-executing and My suggestion is simply that petitioners must, before the trial
paragraph shall not prevent the application of differential internal merely set out general policies; (2) that these nationalistic court, show a more specific legal right -- a right cast in language of
transportation charges which are based exclusively on the portions of the Constitution invoked by petitioners should not be a significantly lower order of generality than Article II (15) of the
economic operation of the means of transport and not on the read in isolation but should be related to other relevant provisions Constitution -- that is or may be violated by the actions, or failures
nationality of the product. (Article III, GATT 1947, as amended by of Art. XII, particularly Secs. 1 and 13 thereof; (3) that read to act, imputed to the public respondent by petitioners so that
the Protocol Modifying Part II, and Article XXVI of GATT, 14 properly, the cited WTO clauses do not conflict with the the trial court can validly render judgment granting all or part of
September 1948, 62 UMTS 82-84 in relation to paragraph 1(a) of Constitution; and (4) that the WTO Agreement contains sufficient the relief prayed for. To my mind, the court should be understood
the General Agreement on Tariffs and Trade 1994, Vol. 1, Uruguay provisions to protect developing countries like the Philippines as simply saying that such a more specific legal right or rights may
Round, Legal Instruments p.177, emphasis supplied). from the harshness of sudden trade liberalization. well exist in our corpus of law, considering the general policy
b) In the area of trade related aspects of intellectual property We shall now discuss and rule on these arguments. principles found in the Constitution and the existence of the
rights (TRIPS, for brevity): Declaration of Principles Not Self-Executing Philippine Environment Code, and that the trial court should have
Each Member shall accord to the nationals of other Members By its very title, Article II of the Constitution is a declaration of given petitioners an effective opportunity so to demonstrate,
treatment no less favourable than that it accords to its own principles and state policies. The counterpart of this article in the instead of aborting the proceedings on a motion to dismiss.
nationals with regard to the protection of intellectual 1935 Constitution[21] is called the basic political creed of the It seems to me important that the legal right which is an essential
property... (par. 1, Article 3, Agreement on Trade-Related Aspect nation by Dean Vicente Sinco.[22] These principles in Article II are component of a cause of action be a specific, operable legal right,
of Intellectual Property rights, Vol. 31, Uruguay Round, Legal not intended to be self-executing principles ready for rather than a constitutional or statutory policy, for at least two (2)
Instruments, p.25432 (emphasis supplied) enforcement through the courts.[23] They are used by the judiciary reasons.One is that unless the legal right claimed to have been
(c) In the area of the General Agreement on Trade in Services: as aids or as guides in the exercise of its power of judicial review, violated or disregarded is given specification in operational terms,
National Treatment and by the legislature in its enactment of laws. As held in the defendants may well be unable to defend themselves intelligently
1. In the sectors inscribed in its schedule, and subject to any leading case of Kilosbayan, Incorporated vs. Morato,[24] the and effectively; in other words, there are due process dimensions
conditions and qualifications set out therein, each Member shall principles and state policies enumerated in Article II and some to this matter.
accord to services and service suppliers of any other Member, in sections of Article XII are not self-executing provisions, the The second is a broader-gauge consideration -- where a specific
respect of all measures affecting the supply of services, treatment disregard of which can give rise to a cause of action in the violation of law or applicable regulation is not alleged or proved,
no less favourable than it accords to its own like services and courts.They do not embody judicially enforceable constitutional petitioners can be expected to fall back on the expanded
service suppliers. rights but guidelines for legislation. conception of judicial power in the second paragraph of Section 1
2. A Member may meet the requirement of paragraph I by In the same light, we held in Basco vs. Pagcor[25] that broad of Article VIII of the Constitution which reads:
according to services and service suppliers of any other Member, constitutional principles need legislative enactments to Section 1. x x x
either formally identical treatment or formally different treatment implement them, thus: Judicial power includes the duty of the courts of justice to settle
to that it accords to its own like services and service suppliers. On petitioners allegation that P.D. 1869 violates Sections 11 actual controversies involving rights which are legally demandable
3. Formally identical or formally different treatment shall be (Personal Dignity) 12 (Family) and 13 (Role of Youth) of Article II; and enforceable, and to determine whether or not there has been
considered to be less favourable if it modifies the conditions of Section 13 (Social Justice) of Article XIII and Section 2 (Educational a grave abuse of discretion amounting to lack or excess of
completion in favour of services or service suppliers of the Values) of Article XIV of the 1987 Constitution, suffice it to state jurisdiction on the part of any branch or instrumentality of the
Member compared to like services or service suppliers of any also that these are merely statements of principles and Government. (Emphases supplied)
other Member. (Article XVII, General Agreement on Trade in policies. As such, they are basically not self-executing, meaning a When substantive standards as general as the right to a balanced
Services, Vol. 28, Uruguay Round Legal Instruments, p.22610 law should be passed by Congress to clearly define and effectuate and healthy ecology and the right to health are combined with
emphasis supplied). such principles. remedial standards as broad ranging as a grave abuse of
It is petitioners position that the foregoing national treatment and In general, therefore, the 1935 provisions were not intended to be discretion amounting to lack or excess of jurisdiction, the result
parity provisions of the WTO Agreement place nationals and self-executing principles ready for enforcement through the will be, it is respectfully submitted, to propel courts into the
products of member countries on the same footing as Filipinos courts. They were rather directives addressed to the executive uncharted ocean of social and economic policy making. At least in
and local products, in contravention of the Filipino First policy of and to the legislature. If the executive and the legislature failed to respect of the vast area of environmental protection and
the Constitution. They allegedly render meaningless the phrase heed the directives of the article, the available remedy was not management, our courts have no claim to special technical
effectively controlled by Filipinos. The constitutional conflict judicial but political. The electorate could express their competence and experience and professional qualification. Where
becomes more manifest when viewed in the context of the clear displeasure with the failure of the executive and the legislature no specific, operable norms and standards are shown to exist,
duty imposed on the Philippines as a WTO member to ensure the through the language of the ballot. (Bernas, Vol. II, p. 2). then the policy making departments -- the legislative and
conformity of its laws, regulations and administrative procedures executive departments -- must be given a real and effective
 13

opportunity to fashion and promulgate those norms and well as of the protection of Filipino enterprises against unfair negotiations with developed countries. Within the WTO,
standards, and to implement them before the courts should foreign competition and trade practices. developing countries can form powerful blocs to push their
intervene. It is true that in the recent case of Manila Prince Hotel vs. economic agenda more decisively than outside the
Economic Nationalism Should Be Read with Other Constitutional Government Service Insurance System, et al.,[31] this Court held Organization. This is not merely a matter of practical alliances but
Mandates to Attain Balanced Development of Economy that Sec. 10, second par., Art. XII of the 1987 Constitution is a a negotiating strategy rooted in law. Thus, the basic principles
On the other hand, Secs. 10 and 12 of Article XII, apart from mandatory, positive command which is complete in itself and underlying the WTO Agreement recognize the need of developing
merely laying down general principles relating to the national which needs no further guidelines or implementing laws or rules countries like the Philippines to share in the growth in
economy and patrimony, should be read and understood in for its enforcement. From its very words the provision does not international trade commensurate with the needs of their
relation to the other sections in said article, especially Secs. 1 and require any legislation to put it in operation. It is per se judicially economic development. These basic principles are found in the
13 thereof which read: enforceable. However, as the constitutional provision itself states, preamble[34] of the WTO Agreement as follows:
Section 1. The goals of the national economy are a more equitable it is enforceable only in regard to the grants of rights, privileges The Parties to this Agreement,
distribution of opportunities, income, and wealth; a sustained and concessions covering national economy and patrimony and Recognizing that their relations in the field of trade and economic
increase in the amount of goods and services produced by the not to every aspect of trade and commerce. It refers to exceptions endeavour should be conducted with a view to raising standards
nation for the benefit of the people; and an expanding rather than the rule. The issue here is not whether this paragraph of living, ensuring full employment and a large and steadily
productivity as the key to raising the quality of life for all, of Sec. 10 of Art. XII is self-executing or not. Rather, the issue is growing volume of real income and effective demand, and
especially the underprivileged. whether, as a rule, there are enough balancing provisions in the expanding the production of and trade in goods and services,
The State shall promote industrialization and full employment Constitution to allow the Senate to ratify the Philippine while allowing for the optimal use of the worlds resources in
based on sound agricultural development and agrarian reform, concurrence in the WTO Agreement. And we hold that there are. accordance with the objective of sustainable development,
through industries that make full and efficient use of human and All told, while the Constitution indeed mandates a bias in favor of seeking both to protect and preserve the environment and to
natural resources, and which are competitive in both domestic Filipino goods, services, labor and enterprises, at the same time, it enhance the means for doing so in a manner consistent with their
and foreign markets. However, the State shall protect Filipino recognizes the need for business exchange with the rest of the respective needs and concerns at different levels of economic
enterprises against unfair foreign competition and trade practices. world on the bases of equality and reciprocity and limits development,
In the pursuit of these goals, all sectors of the economy and all protection of Filipino enterprises only against foreign competition Recognizing further that there is need for positive efforts
regions of the country shall be given optimum opportunity to and trade practices that are unfair.[32] In other words, the designed to ensure that developing countries, and especially the
develop. x x x Constitution did not intend to pursue an isolationist policy. It did least developed among them, secure a share in the growth in
xxxxxxxxx not shut out foreign investments, goods and services in the international trade commensurate with the needs of their
Sec. 13. The State shall pursue a trade policy that serves the development of the Philippine economy. While the Constitution economic development,
general welfare and utilizes all forms and arrangements of does not encourage the unlimited entry of foreign goods, services Being desirous of contributing to these objectives by entering into
exchange on the basis of equality and reciprocity. and investments into the country, it does not prohibit them reciprocal and mutually advantageous arrangements directed to
As pointed out by the Solicitor General, Sec. 1 lays down the basic either. In fact, it allows an exchange on the basis of equality and the substantial reduction of tariffs and other barriers to trade and
goals of national economic development, as follows: reciprocity, frowning only on foreign competition that is unfair. to the elimination of discriminatory treatment in international
1. A more equitable distribution of opportunities, income and WTO Recognizes Need to Protect Weak Economies trade relations,
wealth; Upon the other hand, respondents maintain that the WTO itself Resolved, therefore, to develop an integrated, more viable and
2. A sustained increase in the amount of goods and services has some built-in advantages to protect weak and developing durable multilateral trading system encompassing the General
provided by the nation for the benefit of the people; and economies, which comprise the vast majority of its Agreement on Tariffs and Trade, the results of past trade
3. An expanding productivity as the key to raising the quality of members. Unlike in the UN where major states have permanent liberalization efforts, and all of the results of the Uruguay Round
life for all especially the underprivileged. seats and veto powers in the Security Council, in the WTO, of Multilateral Trade Negotiations,
With these goals in context, the Constitution then ordains the decisions are made on the basis of sovereign equality, with each Determined to preserve the basic principles and to further the
ideals of economic nationalism (1) by expressing preference in members vote equal in weight to that of any other. There is no objectives underlying this multilateral trading system, x x
favor of qualified Filipinos in the grant of rights, privileges and WTO equivalent of the UN Security Council. x. (underscoring supplied.)
concessions covering the national economy and patrimony[27] and WTO decides by consensus whenever possible, otherwise, Specific WTO Provisos Protect Developing Countries
in the use of Filipino labor, domestic materials and locally- decisions of the Ministerial Conference and the General Council So too, the Solicitor General points out that pursuant to and
produced goods; (2) by mandating the State to adopt measures shall be taken by the majority of the votes cast, except in cases of consistent with the foregoing basic principles, the WTO
that help make them competitive;[28] and (3) by requiring the interpretation of the Agreement or waiver of the obligation of a Agreement grants developing countries a more lenient treatment,
State to develop a self-reliant and independent national economy member which would require three fourths vote. Amendments giving their domestic industries some protection from the rush of
effectively controlled by Filipinos.[29] In similar language, the would require two thirds vote in general. Amendments to MFN foreign competition. Thus, with respect to tariffs in general,
Constitution takes into account the realities of the outside world provisions and the Amendments provision will require assent of preferential treatment is given to developing countries in terms of
as it requires the pursuit of a trade policy that serves the general all members. Any member may withdraw from the Agreement the amount of tariff reduction and the period within which the
welfare and utilizes all forms and arrangements of exchange on upon the expiration of six months from the date of notice of reduction is to be spread out. Specifically, GATT requires an
the basis of equality and reciprocity;[30] and speaks of industries withdrawals.[33] average tariff reduction rate of 36% for developed countries to be
which are competitive in both domestic and foreign markets as Hence, poor countries can protect their common interests more effected within a period of six (6) years while developing countries
effectively through the WTO than through one-on-one
 14

-- including the Philippines -- are required to effect an average unconstitutional as in fact they are rules of equality and unknown circumstances. It is to the credit of its drafters that a
tariff reduction of only 24% within ten (10) years. reciprocity that apply to all WTO members. Aside from Constitution can withstand the assaults of bigots and infidels but
In respect to domestic subsidy, GATT requires developed envisioning a trade policy based on equality and reciprocity,[37] the at the same time bend with the refreshing winds of change
countries to reduce domestic support to agricultural products fundamental law encourages industries that are competitive in necessitated by unfolding events. As one eminent political law
by 20% over six (6) years, as compared to only 13% for developing both domestic and foreign markets, thereby demonstrating a writer and respected jurist[38] explains:
countries to be effected within ten (10) years. clear policy against a sheltered domestic trade environment, but The Constitution must be quintessential rather than superficial,
In regard to export subsidy for agricultural products, GATT one in favor of the gradual development of robust industries that the root and not the blossom, the base and framework only of the
requires developed countries to reduce their budgetary outlays can compete with the best in the foreign markets. Indeed, Filipino edifice that is yet to rise. It is but the core of the dream that must
for export subsidy by 36% and export volumes receiving export managers and Filipino enterprises have shown capability and take shape, not in a twinkling by mandate of our delegates, but
subsidy by 21% within a period of six (6) years. For developing tenacity to compete internationally. And given a free trade slowly in the crucible of Filipino minds and hearts, where it will in
countries, however, the reduction rate is only two-thirds of that environment, Filipino entrepreneurs and managers in Hongkong time develop its sinews and gradually gather its strength and
prescribed for developed countries and a longer period of ten (10) have demonstrated the Filipino capacity to grow and to prosper finally achieve its substance. In fine, the Constitution cannot, like
years within which to effect such reduction. against the best offered under a policy of laissez faire. the goddess Athena, rise full-grown from the brow of the
Moreover, GATT itself has provided built-in protection from unfair Constitution Favors Consumers, Not Industries or Enterprises Constitutional Convention, nor can it conjure by mere fiat an
foreign competition and trade practices including anti-dumping The Constitution has not really shown any unbalanced bias in instant Utopia. It must grow with the society it seeks to re-
measures, countervailing measures and safeguards against import favor of any business or enterprise, nor does it contain any structure and march apace with the progress of the race, drawing
surges. Where local businesses are jeopardized by unfair foreign specific pronouncement that Filipino companies should be from the vicissitudes of history the dynamism and vitality that will
competition, the Philippines can avail of these measures. There is pampered with a total keep it, far from becoming a petrified rule, a pulsing, living law
hardly therefore any basis for the statement that under the WTO, proscription of foreign competition. On the other hand, responde attuned to the heartbeat of the nation.
local industries and enterprises will all be wiped out and that nts claim that WTO/GATT aims to make available to the Filipino Third Issue: The WTO Agreement and Legislative Power
Filipinos will be deprived of control of the economy. Quite the consumer the best goods and services obtainable anywhere in the The WTO Agreement provides that (e)ach Member shall ensure
contrary, the weaker situations of developing nations like the world at the most reasonable prices. Consequently, the question the conformity of its laws, regulations and administrative
Philippines have been taken into account; thus, there would be no boils down to whether WTO/GATT will favor the general welfare procedures with its obligations as provided in the annexed
basis to say that in joining the WTO, the respondents have gravely of the public at large. Agreements.[39] Petitioners maintain that this undertaking unduly
abused their discretion.True, they have made a bold decision to Will adherence to the WTO treaty bring this ideal (of favoring the limits, restricts and impairs Philippine sovereignty, specifically the
steer the ship of state into the yet uncharted sea of economic general welfare) to reality? legislative power which under Sec. 2, Article VI of the 1987
liberalization. But such decision cannot be set aside on the ground Will WTO/GATT succeed in promoting the Filipinos general Philippine Constitution is vested in the Congress of the
of grave abuse of discretion, simply because we disagree with it or welfare because it will -- as promised by its promoters -- expand Philippines. It is an assault on the sovereign powers of the
simply because we believe only in other economic policies. As the countrys exports and generate more employment? Philippines because this means that Congress could not pass
earlier stated, the Court in taking jurisdiction of this case will not Will it bring more prosperity, employment, purchasing power and legislation that will be good for our national interest and general
pass upon the advantages and disadvantages of trade quality products at the most reasonable rates to the Filipino welfare if such legislation will not conform with the WTO
liberalization as an economic policy. It will only perform its public? Agreement, which not only relates to the trade in goods x x x but
constitutional duty of determining whether the Senate committed The responses to these questions involve judgment calls by our also to the flow of investments and money x x x as well as to a
grave abuse of discretion. policy makers, for which they are answerable to our people during whole slew of agreements on socio-cultural matters x x x.[40]
Constitution Does Not Rule Out Foreign Competition appropriate electoral exercises. Such questions and the answers More specifically, petitioners claim that said
Furthermore, the constitutional policy of a self-reliant and thereto are not subject to judicial pronouncements based on WTO proviso derogates from the power to tax, which is lodged in
independent national economy[35] does not necessarily rule out grave abuse of discretion. the Congress.[41] And while the Constitution allows Congress to
the entry of foreign investments, goods and services. It Constitution Designed to Meet Future Events and Contingencies authorize the President to fix tariff rates, import and export
contemplates neither economic seclusion nor mendicancy in the No doubt, the WTO Agreement was not yet in existence when the quotas, tonnage and wharfage dues, and other duties or imposts,
international community. As explained by Constitutional Constitution was drafted and ratified in 1987. That does not mean such authority is subject to specified limits and x x x such
Commissioner Bernardo Villegas, sponsor of this constitutional however that the Charter is necessarily flawed in the sense that limitations and restrictions as Congress may provide,[42] as in fact
policy: its framers might not have anticipated the advent of a borderless it did under Sec. 401 of the Tariff and Customs Code.
Economic self-reliance is a primary objective of a developing world of business. By the same token, the United Nations was not Sovereignty Limited by International Law and Treaties
country that is keenly aware of overdependence on external yet in existence when the 1935 Constitution became effective. Did This Court notes and appreciates the ferocity and passion by
assistance for even its most basic needs. It does not mean autarky that necessarily mean that the then Constitution might not have which petitioners stressed their arguments on this
or economic seclusion; rather, it means avoiding mendicancy in contemplated a diminution of the absoluteness of sovereignty issue. However, while sovereignty has traditionally been deemed
the international community. Independence refers to the when the Philippines signed the UN Charter, thereby effectively absolute and all-encompassing on the domestic level, it is
freedom from undue foreign control of the national economy, surrendering part of its control over its foreign relations to the however subject to restrictions and limitations voluntarily agreed
especially in such strategic industries as in the development of decisions of various UN organs like the Security Council? to by the Philippines, expressly or impliedly, as a member of the
natural resources and public utilities.[36] It is not difficult to answer this question. Constitutions are family of nations. Unquestionably, the Constitution did not
The WTO reliance on most favored nation, national treatment, designed to meet not only the vagaries of contemporary envision a hermit-type isolation of the country from the rest of
and trade without discrimination cannot be struck down as events. They should be interpreted to cover even future and the world. In its Declaration of Principles and State Policies, the
 15

Constitution adopts the generally accepted principles of corresponding share in such expenses. In this sense, the Philippine (g) Bilateral air service agreement with Belgium where the
international law as part of the law of the land, and adheres to Congress is restricted in its power to appropriate. It is compelled Philippines granted Belgian air carriers the same privileges as
the policy of peace, equality, justice, freedom, cooperation and to appropriate funds whether it agrees with such peace-keeping those granted to Japanese and Korean air carriers under separate
amity, with all nations."[43] By the doctrine of incorporation, the expenses or not. So too, under Article 105 of the said Charter, the air service agreements.
country is bound by generally accepted principles of international UN and its representatives enjoy diplomatic privileges and (h) Bilateral notes with Israel for the abolition of transit and visitor
law, which are considered to be automatically part of our own immunities, thereby limiting again the exercise of sovereignty of visas where the Philippines exempted Israeli nationals from the
laws.[44] One of the oldest and most fundamental rules in members within their own territory. Another example: although requirement of obtaining transit or visitor visas for a sojourn in
international law is pacta sunt servanda -- international sovereign equality and domestic jurisdiction of all members are the Philippines not exceeding 59 days.
agreements must be performed in good faith. A treaty set forth as underlying principles in the UN Charter, (I) Bilateral agreement with France exempting French nationals
engagement is not a mere moral obligation but creates a legally such provisos are however subject to enforcement measures from the requirement of obtaining transit and visitor visa for a
binding obligation on the parties x x x. A state which has decided by the Security Council for the maintenance of sojourn not exceeding 59 days.
contracted valid international obligations is bound to make in its international peace and security under Chapter VII of the (j) Multilateral Convention on Special Missions, where the
legislations such modifications as may be necessary to ensure the Charter. A final example: under Article 103, (i)n the event of a Philippines agreed that premises of Special Missions in the
fulfillment of the obligations undertaken.[45] conflict between the obligations of the Members of the United Philippines are inviolable and its agents can not enter said
By their inherent nature, treaties really limit or restrict the Nations under the present Charter and their obligations under any premises without consent of the Head of Mission
absoluteness of sovereignty. By their voluntary act, nations may other international agreement, their obligation under the present concerned. Special Missions are also exempted from customs
surrender some aspects of their state power in exchange for charter shall prevail, thus unquestionably denying the Philippines duties, taxes and related charges.
greater benefits granted by or derived from a convention or -- as a member -- the sovereign power to make a choice as to (k) Multilateral Convention on the Law of Treaties. In this
pact. After all, states, like individuals, live with coequals, and in which of conflicting obligations, if any, to honor. convention, the Philippines agreed to be governed by the Vienna
pursuit of mutually covenanted objectives and benefits, they also Apart from the UN Treaty, the Philippines has entered into many Convention on the Law of Treaties.
commonly agree to limit the exercise of their otherwise absolute other international pacts -- both bilateral and multilateral -- that (l) Declaration of the President of the Philippines accepting
rights. Thus, treaties have been used to record agreements involve limitations on Philippine sovereignty. These are compulsory jurisdiction of the International Court of Justice. The
between States concerning such widely diverse matters as, for enumerated by the Solicitor General in his Compliance dated International Court of Justice has jurisdiction in all legal disputes
example, the lease of naval bases, the sale or cession of territory, October 24, 1996, as follows: concerning the interpretation of a treaty, any question of
the termination of war, the regulation of conduct of hostilities, (a) Bilateral convention with the United States regarding taxes on international law, the existence of any fact which, if established,
the formation of alliances, the regulation of commercial relations, income, where the Philippines agreed, among others, to exempt would constitute a breach of international obligation.
the settling of claims, the laying down of rules governing conduct from tax, income received in the Philippines by, among others, In the foregoing treaties, the Philippines has effectively agreed to
in peace and the establishment of international the Federal Reserve Bank of the United States, the Export/Import limit the exercise of its sovereign powers of taxation, eminent
organizations.[46] The sovereignty of a state therefore cannot in Bank of the United States, the Overseas Private Investment domain and police power. The underlying consideration in this
fact and in reality be considered absolute. Certain restrictions Corporation of the United States. Likewise, in said convention, partial surrender of sovereignty is the reciprocal commitment of
enter into the picture: (1) limitations imposed by the very nature wages, salaries and similar remunerations paid by the United the other contracting states in granting the same privilege and
of membership in the family of nations and (2) limitations States to its citizens for labor and personal services performed by immunities to the Philippines, its officials and its citizens. The
imposed by treaty stipulations. As aptly put by John F. Kennedy, them as employees or officials of the United States are exempt same reciprocity characterizes the Philippine commitments under
Today, no nation can build its destiny alone. The age of self- from income tax by the Philippines. WTO-GATT.
sufficient nationalism is over. The age of interdependence is (b) Bilateral agreement with Belgium, providing, among others, International treaties, whether relating to nuclear disarmament,
here.[47] for the avoidance of double taxation with respect to taxes on human rights, the environment, the law of the sea, or trade,
UN Charter and Other Treaties Limit Sovereignty income. constrain domestic political sovereignty through the assumption
Thus, when the Philippines joined the United Nations as one of its (c) Bilateral convention with the Kingdom of Sweden for the of external obligations. But unless anarchy in international
51 charter members, it consented to restrict its sovereign rights avoidance of double taxation. relations is preferred as an alternative, in most cases we accept
under the concept of sovereignty as auto-limitation.47-A Under (d) Bilateral convention with the French Republic for the that the benefits of the reciprocal obligations involved outweigh
Article 2 of the UN Charter, (a)ll members shall give the United avoidance of double taxation. the costs associated with any loss of political sovereignty. (T)rade
Nations every assistance in any action it takes in accordance with (e) Bilateral air transport agreement with Korea where the treaties that structure relations by reference to durable, well-
the present Charter, and shall refrain from giving assistance to any Philippines agreed to exempt from all customs duties, inspection defined substantive norms and objective dispute resolution
state against which the United Nations is taking preventive or fees and other duties or taxes aircrafts of South Korea and the procedures reduce the risks of larger countries exploiting raw
enforcement action. Such assistance includes payment of its regular equipment, spare parts and supplies arriving with said economic power to bully smaller countries, by subjecting power
corresponding share not merely in administrative expenses but aircrafts. relations to some form of legal ordering. In addition, smaller
also in expenditures for the peace-keeping operations of the (f) Bilateral air service agreement with Japan, where the countries typically stand to gain disproportionately from trade
organization. In its advisory opinion of July 20, 1961, the Philippines agreed to exempt from customs duties, excise taxes, liberalization. This is due to the simple fact that liberalization will
International Court of Justice held that money used by the United inspection fees and other similar duties, taxes or charges fuel, provide access to a larger set of potential new trading relationship
Nations Emergency Force in the Middle East and in the Congo lubricating oils, spare parts, regular equipment, stores on board than in case of the larger country gaining enhanced success to the
were expenses of the United Nations under Article 17, paragraph Japanese aircrafts while on Philippine soil. smaller countrys market.[48]
2, of the UN Charter. Hence, all its members must bear their
 16

The point is that, as shown by the foregoing treaties, a portion of actually refers to the burden of evidence (burden of going Financial Services -- is defective and insufficient and thus
sovereignty may be waived without violating the Constitution, forward) placed on the producer of the identical (or fake) product constitutes abuse of discretion. They submit that such
based on the rationale that the Philippines adopts the generally to show that his product was produced without the use of the concurrence in the WTO Agreement alone is flawed because it is
accepted principles of international law as part of the law of the patented process. in effect a rejection of the Final Act, which in turn was the
land and adheres to the policy of x x x cooperation and amity with The foregoing notwithstanding, the patent owner still has the document signed by Secretary Navarro, in representation of the
all nations. burden of proof since, regardless of the presumption provided Republic upon authority of the President. They contend that the
Fourth Issue: The WTO Agreement and Judicial Power under paragraph 1 of Article 34, such owner still has to introduce second letter of the President to the Senate[53] which enumerated
Petitioners aver that paragraph 1, Article 34 of the General evidence of the existence of the alleged identical product, the fact what constitutes the Final Act should have been the subject of
Provisions and Basic Principles of the Agreement on Trade- that it is identical to the genuine one produced by the patented concurrence of the Senate.
Related Aspects of Intellectual Property Rights (TRIPS)[49]intrudes process and the fact of newness of the genuine product or the A final act, sometimes called protocol de clture, is an instrument
on the power of the Supreme Court to promulgate rules fact of substantial likelihood that the identical product was made which records the winding up of the proceedings of a diplomatic
concerning pleading, practice and procedures.[50] by the patented process. conference and usually includes a reproduction of the texts of
To understand the scope and meaning of Article 34, TRIPS,[51] it The foregoing should really present no problem in changing the treaties, conventions, recommendations and other acts agreed
will be fruitful to restate its full text as follows: rules of evidence as the present law on the subject, Republic Act upon and signed by the plenipotentiaries attending the
Article 34 No. 165, as amended, otherwise known as the Patent Law, conference.[54] It is not the treaty itself. It is rather a summary of
Process Patents: Burden of Proof provides a similar presumption in cases of infringement of the proceedings of a protracted conference which may have taken
1. For the purposes of civil proceedings in respect of the patented design or utility model, thus: place over several years. The text of the Final Act Embodying the
infringement of the rights of the owner referred to in paragraph SEC. 60. Infringement. - Infringement of a design patent or of a Results of the Uruguay Round of Multilateral Trade Negotiations is
1(b) of Article 28, if the subject matter of a patent is a process for patent for utility model shall consist in unauthorized copying of contained in just one page[55] in Vol. I of the 36-
obtaining a product, the judicial authorities shall have the the patented design or utility model for the purpose of trade or volume Uruguay Round of Multilateral Trade Negotiations. By
authority to order the defendant to prove that the process to industry in the article or product and in the making, using or signing said Final Act, Secretary Navarro as representative of the
obtain an identical product is different from the patented selling of the article or product copying the patented design or Republic of the Philippines undertook:
process. Therefore, Members shall provide, in at least one of the utility model. Identity or substantial identity with the patented "(a) to submit, as appropriate, the WTO Agreement for the
following circumstances, that any identical product when design or utility model shall constitute evidence of copying. consideration of their respective competent authorities with a
produced without the consent of the patent owner shall, in the (underscoring supplied) view to seeking approval of the Agreement in accordance with
absence of proof to the contrary, be deemed to have been Moreover, it should be noted that the requirement of Article 34 their procedures; and
obtained by the patented process: to provide a disputable presumption applies only if (1) the (b) to adopt the Ministerial Declarations and Decisions."
(a) if the product obtained by the patented process is new; product obtained by the patented process is NEW or (2) there is a The assailed Senate Resolution No. 97 expressed concurrence in
(b) if there is a substantial likelihood that the identical product substantial likelihood that the identical product was made by the exactly what the Final Act required from its signatories, namely,
was made by the process and the owner of the patent has been process and the process owner has not been able through concurrence of the Senate in the WTO Agreement.
unable through reasonable efforts to determine the process reasonable effort to determine the process used. Where either of The Ministerial Declarations and Decisions were deemed adopted
actually used. these two provisos does not obtain, members shall be free to without need for ratification. They were approved by the
2. Any Member shall be free to provide that the burden of proof determine the appropriate method of implementing the ministers by virtue of Article XXV: 1 of GATT which provides that
indicated in paragraph 1 shall be on the alleged infringer only if provisions of TRIPS within their own internal systems and representatives of the members can meet to give effect to those
the condition referred to in subparagraph (a) is fulfilled or only if processes. provisions of this Agreement which invoke joint action, and
the condition referred to in subparagraph (b) is fulfilled. By and large, the arguments adduced in connection with our generally with a view to facilitating the operation and furthering
3. In the adduction of proof to the contrary, the legitimate disposition of the third issue -- derogation of legislative power - the objectives of this Agreement.[56]
interests of defendants in protecting their manufacturing and will apply to this fourth issue also. Suffice it to say that the The Understanding on Commitments in Financial Services also
business secrets shall be taken into account. reciprocity clause more than justifies such intrusion, if any actually approved in Marrakesh does not apply to the Philippines. It
From the above, a WTO Member is required to provide a rule of exists. Besides, Article 34 does not contain an unreasonable applies only to those 27 Members which have indicated in their
disputable (note the words in the absence of proof to the burden, consistent as it is with due process and the concept of respective schedules of commitments on standstill, elimination of
contrary) presumption that a product shown to be identical to adversarial dispute settlement inherent in our judicial system. monopoly, expansion of operation of existing financial service
one produced with the use of a patented process shall be deemed So too, since the Philippine is a signatory to most international suppliers, temporary entry of personnel, free transfer and
to have been obtained by the (illegal) use of the said patented conventions on patents, trademarks and copyrights, the processing of information, and national treatment with respect to
process, (1) where such product obtained by the patented adjustment in legislation and rules of procedure will not be access to payment, clearing systems and refinancing available in
product is new, or (2) where there is substantial likelihood that substantial.[52] the normal course of business.[57]
the identical product was made with the use of the said patented Fifth Issue: Concurrence Only in the WTO Agreement and Not in On the other hand, the WTO Agreement itself expresses what
process but the owner of the patent could not determine the Other Documents Contained in the Final Act multilateral agreements are deemed included as its integral
exact process used in obtaining such identical product. Hence, the Petitioners allege that the Senate concurrence in the WTO parts,[58] as follows:
burden of proof contemplated by Article 34 should actually be Agreement and its annexes -- but not in the other documents Article II
understood as the duty of the alleged patent infringer to referred to in the Final Act, namely the Ministerial Declaration Scope of the WTO
overthrow such presumption. Such burden, properly understood, and Decisions and the Understanding on Commitments in
 17

1. The WTO shall provide the common institutional framework for Based on what Secretary Romulo has read, it would now clearly therein via Senate Resolution No. 97. Procedurally, a writ
the conduct of trade relations among its Members in matters to appear that what is being submitted to the Senate for ratification of certiorari grounded on grave abuse of discretion may be issued
the agreements and associated legal instruments included in the is not the Final Act of the Uruguay Round, but rather the by the Court under Rule 65 of the Rules of Court when it is amply
Annexes to this Agreement. Agreement on the World Trade Organization as well as the shown that petitioners have no other plain, speedy and adequate
2. The Agreements and associated legal instruments included in Ministerial Declarations and Decisions, and the Understanding remedy in the ordinary course of law.
Annexes 1, 2, and 3 (hereinafter referred to as Multilateral and Commitments in Financial Services. By grave abuse of discretion is meant such capricious and
Agreements) are integral parts of this Agreement, binding on all I am now satisfied with the wording of the new submission of whimsical exercise of judgment as is equivalent to lack of
Members. President Ramos. jurisdiction.[61] Mere abuse of discretion is not enough. It must
3. The Agreements and associated legal instruments included in SEN. TAADA. . . . of President Ramos, Mr. Chairman. be grave abuse of discretion as when the power is exercised in an
Annex 4 (hereinafter referred to as Plurilateral Trade Agreements) THE CHAIRMAN. Thank you, Senator Taada. Can we hear from arbitrary or despotic manner by reason of passion or personal
are also part of this Agreement for those Members that have Senator Tolentino? And after him Senator Neptali Gonzales and hostility, and must be so patent and so gross as to amount to an
accepted them, and are binding on those Members. The Senator Lina. evasion of a positive duty or to a virtual refusal to perform the
Plurilateral Trade Agreements do not create either obligation or SEN TOLENTINO, Mr. Chairman, I have not seen the new duty enjoined or to act at all in contemplation of law.[62] Failure on
rights for Members that have not accepted them. submission actually transmitted to us but I saw the draft of his the part of the petitioner to show grave abuse of discretion will
4. The General Agreement on Tariffs and Trade 1994 as specified earlier, and I think it now complies with the provisions of the result in the dismissal of the petition.[63]
in annex 1A (hereinafter referred to as GATT 1994) is legally Constitution, and with the Final Act itself. The Constitution does In rendering this Decision, this Court never forgets that the
distinct from the General Agreement on Tariffs and Trade, dated not require us to ratify the Final Act. It requires us to ratify the Senate, whose act is under review, is one of two sovereign houses
30 October 1947, annexed to the Final Act adopted at the Agreement which is now being submitted. The Final Act itself of Congress and is thus entitled to great respect in its actions. It is
conclusion of the Second Session of the Preparatory Committee of specifies what is going to be submitted to with the governments itself a constitutional body independent and coordinate, and thus
the United Nations Conference on Trade and Employment, as of the participants. its actions are presumed regular and done in good faith. Unless
subsequently rectified, amended or modified (hereinafter In paragraph 2 of the Final Act, we read and I quote: convincing proof and persuasive arguments are presented to
referred to as GATT 1947). By signing the present Final Act, the representatives agree: (a) to overthrow such presumptions, this Court will resolve every doubt
It should be added that the Senate was well-aware of what it was submit as appropriate the WTO Agreement for the consideration in its favor. Using the foregoing well-accepted definition of grave
concurring in as shown by the members deliberation on August of the respective competent authorities with a view to seeking abuse of discretion and the presumption of regularity in the
25, 1994. After reading the letter of President Ramos dated approval of the Agreement in accordance with their procedures. Senates processes, this Court cannot find any cogent reason to
August 11, 1994,[59] the senators of the Republic minutely In other words, it is not the Final Act that was agreed to be impute grave abuse of discretion to the Senates exercise of its
dissected what the Senate was concurring in, as follows: [60] submitted to the governments for ratification or acceptance as power of concurrence in the WTO Agreement granted it by Sec.
THE CHAIRMAN: Yes. Now, the question of the validity of the whatever their constitutional procedures may provide but it is the 21 of Article VII of the Constitution.[64]
submission came up in the first day hearing of this Committee World Trade Organization Agreement. And if that is the one that It is true, as alleged by petitioners, that broad constitutional
yesterday. Was the observation made by Senator Taada that what is being submitted now, I think it satisfies both the Constitution principles require the State to develop an independent national
was submitted to the Senate was not the agreement on and the Final Act itself. economy effectively controlled by Filipinos; and to protect and/or
establishing the World Trade Organization by the final act of the Thank you, Mr. Chairman. prefer Filipino labor, products, domestic materials and locally
Uruguay Round which is not the same as the agreement THE CHAIRMAN. Thank you, Senator Tolentino, May I call on produced goods. But it is equally true that such principles -- while
establishing the World Trade Organization?And on that basis, Senator Gonzales. serving as judicial and legislative guides -- are not in themselves
Senator Tolentino raised a point of order which, however, he SEN. GONZALES. Mr. Chairman, my views on this matter are sources of causes of action. Moreover, there are other equally
agreed to withdraw upon understanding that his suggestion for an already a matter of record. And they had been adequately fundamental constitutional principles relied upon by the Senate
alternative solution at that time was acceptable. That suggestion reflected in the journal of yesterdays session and I dont see any which mandate the pursuit of a trade policy that serves the
was to treat the proceedings of the Committee as being in the need for repeating the same. general welfare and utilizes all forms and arrangements of
nature of briefings for Senators until the question of the Now, I would consider the new submission as an act ex abudante exchange on the basis of equality and reciprocity and the
submission could be clarified. cautela. promotion of industries which are competitive in both domestic
And so, Secretary Romulo, in effect, is the President submitting a THE CHAIRMAN. Thank you, Senator Gonzales. Senator Lina, do and foreign markets, thereby justifying its acceptance of said
new... is he making a new submission which improves on the you want to make any comment on this? treaty. So too, the alleged impairment of sovereignty in the
clarity of the first submission? SEN. LINA. Mr. President, I agree with the observation just made exercise of legislative and judicial powers is balanced by the
MR. ROMULO: Mr. Chairman, to make sure that it is clear cut and by Senator Gonzales out of the abundance of question. Then the adoption of the generally accepted principles of international law
there should be no misunderstanding, it was his intention to new submission is, I believe, stating the obvious and therefore I as part of the law of the land and the adherence of the
clarify all matters by giving this letter. have no further comment to make. Constitution to the policy of cooperation and amity with all
THE CHAIRMAN: Thank you. Epilogue nations.
Can this Committee hear from Senator Taada and later on Senator In praying for the nullification of the Philippine ratification of the That the Senate, after deliberation and voting, voluntarily and
Tolentino since they were the ones that raised this question WTO Agreement, petitioners are invoking this Courts overwhelmingly gave its consent to the WTO Agreement thereby
yesterday? constitutionally imposed duty to determine whether or not there making it a part of the law of the land is a legitimate exercise of its
Senator Taada, please. has been grave abuse of discretion amounting to lack or excess of sovereign duty and power. We find no patent and gross
SEN. TAADA: Thank you, Mr. Chairman. jurisdiction on the part of the Senate in giving its concurrence arbitrariness or despotism by reason of passion or personal
 18

hostility in such exercise. It is not impossible to surmise that this Republic of the Philippines Third. — That Attorneys Hussey and Port have no personality as
Court, or at least some of its members, may even agree with SUPREME COURT prosecution the United State not being a party in interest in the
petitioners that it is more advantageous to the national interest to Manila case.
strike down Senate Resolution No. 97. But that is not a legal EN BANC Executive Order No. 68, establishing a National War Crimes Office
reason to attribute grave abuse of discretion to the Senate and to G.R. No. L-2662 March 26, 1949 prescribing rule and regulation governing the trial of accused war
nullify its decision. To do so would constitute grave abuse in the SHIGENORI KURODA, petitioner, criminals, was issued by the President of the Philippines on the
exercise of our own judicial power and duty.Ineludably, what the vs. 29th days of July, 1947 This Court holds that this order is valid and
Senate did was a valid exercise of its authority. As to whether Major General RAFAEL JALANDONI, Brigadier General CALIXTO constitutional. Article 2 of our Constitution provides in its section
such exercise was wise, beneficial or viable is outside the realm of DUQUE, Colonel MARGARITO TORALBA, Colonel IRENEO 3, that —
judicial inquiry and review. That is a matter between the elected BUENCONSEJO, Colonel PEDRO TABUENA, Major FEDERICO The Philippines renounces war as an instrument of national policy
policy makers and the people. As to whether the nation should ARANAS, MELVILLE S. HUSSEY and ROBERT PORT, respondents. and adopts the generally accepted principles of international law
join the worldwide march toward trade liberalization and Pedro Serran, Jose G. Lukban, and Liberato B. Cinco for petitioner. as part of the of the nation.
economic globalization is a matter that our people should Fred Ruiz Castro Federico Arenas Mariano Yengco, Jr., Ricardo A. In accordance with the generally accepted principle of
determine in electing their policy makers. After all, the WTO Arcilla and S. Melville Hussey for respondents. international law of the present day including the Hague
Agreement allows withdrawal of membership, should this be the MORAN, C.J.: Convention the Geneva Convention and significant precedents of
political desire of a member. Shigenori Kuroda, formerly a Lieutenant-General of the Japanese international jurisprudence established by the United Nation all
The eminent futurist John Naisbitt, author of the best Imperial Army and Commanding General of the Japanese Imperial those person military or civilian who have been guilty of planning
seller Megatrends, predicts an Asian Renaissance[65] where the Forces in The Philippines during a period covering 19433 and preparing or waging a war of aggression and of the commission of
East will become the dominant region of the world economically, 19444 who is now charged before a military Commission crimes and offenses consequential and incidental thereto in
politically and culturally in the next century. He refers to the free convened by the Chief of Staff of the Armed forces of the violation of the laws and customs of war, of humanity and
market espoused by WTO as the catalyst in this coming Asian Philippines with having unlawfully disregarded and failed "to civilization are held accountable therefor. Consequently in the
ascendancy. There are at present about 31 countries including discharge his duties as such command, permitting them to promulgation and enforcement of Execution Order No. 68 the
China, Russia and Saudi Arabia negotiating for membership in the commit brutal atrocities and other high crimes against President of the Philippines has acted in conformity with the
WTO. Notwithstanding objections against possible limitations on noncombatant civilians and prisoners of the Imperial Japanese generally accepted and policies of international law which are
national sovereignty, the WTO remains as the only viable Forces in violation of the laws and customs of war" — comes part of the our Constitution.
structure for multilateral trading and the veritable forum for the before this Court seeking to establish the illegality of Executive The promulgation of said executive order is an exercise by the
development of international trade law. The alternative to WTO is Order No. 68 of the President of the Philippines: to enjoin and President of his power as Commander in chief of all our armed
isolation, stagnation, if not economic self-destruction. Duly prohibit respondents Melville S. Hussey and Robert Port from forces as upheld by this Court in the case of Yamashita vs. Styer
enriched with original membership, keenly aware of the participating in the prosecution of petitioner's case before the (L-129, 42 Off. Gaz., 664) 1 when we said —
advantages and disadvantages of globalization with its on-line Military Commission and to permanently prohibit respondents War is not ended simply because hostilities have ceased. After
experience, and endowed with a vision of the future, the from proceeding with the case of petitioners. cessation of armed hostilities incident of war may remain pending
Philippines now straddles the crossroads of an international In support of his case petitioner tenders the following principal which should be disposed of as in time of war. An importance
strategy for economic prosperity and stability in the new arguments. incident to a conduct of war is the adoption of measure by the
millennium. Let the people, through their duly authorized elected First. — "That Executive Order No. 68 is illegal on the ground that military command not only to repel and defeat the enemies but to
officers, make their free choice. it violates not only the provision of our constitutional law but also seize and subject to disciplinary measure those enemies who in
WHEREFORE, the petition is DISMISSED for lack of merit. our local laws to say nothing of the fact (that) the Philippines is their attempt to thwart or impede our military effort have
SO ORDERED. not a signatory nor an adherent to the Hague Convention on Rules violated the law of war. (Ex parte Quirin 317 U.S., 1; 63 Sup. Ct.,
and Regulations covering Land Warfare and therefore petitioners 2.) Indeed the power to create a military commission for the trial
is charged of 'crimes' not based on law, national and and punishment of war criminals is an aspect of waging war. And
international." Hence petitioner argues — "That in view off the in the language of a writer a military commission has jurisdiction
fact that this commission has been empanelled by virtue of an so long as a technical state of war continues. This includes the
unconstitutional law an illegal order this commission is without period of an armistice or military occupation up to the effective of
jurisdiction to try herein petitioner." a treaty of peace and may extend beyond by treaty agreement.
Second. — That the participation in the prosecution of the case (Cowles Trial of War Criminals by Military Tribunals, America Bar
against petitioner before the Commission in behalf of the United Association Journal June, 1944.)
State of America of attorneys Melville Hussey and Robert Port Consequently, the President as Commander in Chief is fully
who are not attorneys authorized by the Supreme Court to empowered to consummate this unfinished aspect of war namely
practice law in the Philippines is a diminution of our personality as the trial and punishment of war criminal through the issuance and
an independent state and their appointment as prosecutor are a enforcement of Executive Order No. 68.
violation of our Constitution for the reason that they are not Petitioner argues that respondent Military Commission has no
qualified to practice law in the Philippines. Jurisdiction to try petitioner for acts committed in violation of the
Hague Convention and the Geneva Convention because the
 19

Philippines is not a signatory to the first and signed the second should be allowed representation in the trial of those very crimes. City Fiscal Eugenio Angeles and Assistant City Fiscal Eulogio S.
only in 1947. It cannot be denied that the rules and regulation of If there has been any relinquishment of sovereignty it has not Serrano for respondent City Treasurer.
the Hague and Geneva conventions form, part of and are wholly been by our government but by the United State Government Dionisio Reyes as Amicus Curiae.
based on the generally accepted principals of international law. In which has yielded to us the trial and punishment of her enemies. Marcial G. Mendiola as Amicus Curiae.
facts these rules and principles were accepted by the two The least that we could do in the spirit of comity is to allow them Emiliano R. Navarro as Amicus Curiae.
belligerent nation the United State and Japan who were representation in said trials. LABRADOR, J.:
signatories to the two Convention, Such rule and principles Alleging that the United State is not a party in interest in the case I. The case and issue, in general
therefore form part of the law of our nation even if the petitioner challenges the personality of attorneys Hussey and Port This Court has before it the delicate task of passing upon the
Philippines was not a signatory to the conventions embodying as prosecutors. It is of common knowledge that the United State validity and constitutionality of a legislative enactment,
them for our Constitution has been deliberately general and and its people have been equally if not more greatly aggrieved by fundamental and far-reaching in significance. The enactment
extensive in its scope and is not confined to the recognition of the crimes with which petitioner stands charged before the poses questions of due process, police power and equal
rule and principle of international law as continued inn treaties to Military Commission. It can be considered a privilege for our protection of the laws. It also poses an important issue of fact,
which our government may have been or shall be a signatory. Republic that a leader nation should submit the vindication of the that is whether the conditions which the disputed law purports to
Furthermore when the crimes charged against petitioner were honor of its citizens and its government to a military tribunal of remedy really or actually exist. Admittedly springing from a deep,
allegedly committed the Philippines was under the sovereignty of our country. militant, and positive nationalistic impulse, the law purports to
United States and thus we were equally bound together with the The Military Commission having been convened by virtue of a protect citizen and country from the alien retailer. Through it, and
United States and with Japan to the right and obligation contained valid law with jurisdiction over the crimes charged which fall within the field of economy it regulates, Congress attempts to
in the treaties between the belligerent countries. These rights and under the provisions of Executive Order No. 68, and having said translate national aspirations for economic independence and
obligation were not erased by our assumption of full sovereignty. petitioner in its custody, this Court will not interfere with the due national security, rooted in the drive and urge for national survival
If at all our emergency as a free state entitles us to enforce the process of such Military commission. and welfare, into a concrete and tangible measures designed to
right on our own of trying and punishing those who committed For all the foregoing the petition is denied with costs de oficio. free the national retailer from the competing dominance of the
crimes against crimes against our people. In this connection it is Paras, Feria, Pablo, Bengzon, Tuason, Montemayor and Reyes, alien, so that the country and the nation may be free from a
well to remember what we have said in the case of Laurel vs. JJ., concur. supposed economic dependence and bondage. Do the facts and
Misa (76 Phil., 372): circumstances justify the enactment?
. . . The change of our form government from Commonwealth to II. Pertinent provisions of Republic Act No. 1180
Republic does not affect the prosecution of those charged with Republic Act No. 1180 is entitled "An Act to Regulate the Retail
the crime of treason committed during then Commonwealth Business." In effect it nationalizes the retail trade business. The
because it is an offense against the same sovereign people. . . . main provisions of the Act are: (1) a prohibition against persons,
By the same token war crimes committed against our people and not citizens of the Philippines, and against associations,
our government while we were a Commonwealth are triable and partnerships, or corporations the capital of which are not wholly
punishable by our present Republic. owned by citizens of the Philippines, from engaging directly or
Petitioner challenges the participation of two American attorneys indirectly in the retail trade; (2) an exception from the above
namely Melville S. Hussey and Robert Port in the prosecution of prohibition in favor of aliens actually engaged in said business on
his case on the ground that said attorney's are not qualified to May 15, 1954, who are allowed to continue to engaged therein,
practice law in Philippines in accordance with our Rules of court unless their licenses are forfeited in accordance with the law, until
and the appointment of said attorneys as prosecutors is violative their death or voluntary retirement in case of natural persons,
of our national sovereignty. and for ten years after the approval of the Act or until the
In the first place respondent Military Commission is a special Republic of the Philippines expiration of term in case of juridical persons; (3) an exception
military tribunal governed by a special law and not by the Rules of SUPREME COURT therefrom in favor of citizens and juridical entities of the United
court which govern ordinary civil court. It has already been shown Manila States; (4) a provision for the forfeiture of licenses (to engage in
that Executive Order No. 68 which provides for the organization of EN BANC the retail business) for violation of the laws on nationalization,
such military commission is a valid and constitutional law. There is G.R. No. L-7995 May 31, 1957 control weights and measures and labor and other laws relating to
nothing in said executive order which requires that counsel LAO H. ICHONG, in his own behalf and in behalf of other alien trade, commerce and industry; (5) a prohibition against the
appearing before said commission must be attorneys qualified to residents, corporations and partnerships adversely affected. by establishment or opening by aliens actually engaged in the retail
practice law in the Philippines in accordance with the Rules of Republic Act No. 1180, petitioner, business of additional stores or branches of retail business, (6) a
Court. In facts it is common in military tribunals that counsel for vs. provision requiring aliens actually engaged in the retail business
the parties are usually military personnel who are neither JAIME HERNANDEZ, Secretary of Finance, and MARCELINO to present for registration with the proper authorities a verified
attorneys nor even possessed of legal training. SARMIENTO, City Treasurer of Manila,respondents. statement concerning their businesses, giving, among other
Secondly the appointment of the two American attorneys is not Ozaeta, Lichauco and Picazo and Sycip, Quisumbing, Salazar and matters, the nature of the business, their assets and liabilities and
violative of our nation sovereignty. It is only fair and proper that Associates for petitioner. their offices and principal offices of judicial entities; and (7) a
United States, which has submitted the vindication of crimes Office of the Solicitor General Ambrosio Padilla and Solicitor provision allowing the heirs of aliens now engaged in the retail
against her government and her people to a tribunal of our nation Pacifico P. de Castro for respondent Secretary of Finance.
 20

business who die, to continue such business for a period of six extensive with self-protection and survival, and as such it is the with private interest? These are the questions that we ask when
months for purposes of liquidation. most positive and active of all governmental processes, the most the due process test is applied.
III. Grounds upon which petition is based-Answer thereto essential, insistent and illimitable. Especially is it so under a The conflict, therefore, between police power and the guarantees
Petitioner, for and in his own behalf and on behalf of other alien modern democratic framework where the demands of society and of due process and equal protection of the laws is more apparent
residents corporations and partnerships adversely affected by the of nations have multiplied to almost unimaginable proportions; than real. Properly related, the power and the guarantees are
provisions of Republic Act. No. 1180, brought this action to obtain the field and scope of police power has become almost boundless, supposed to coexist. The balancing is the essence or, shall it be
a judicial declaration that said Act is unconstitutional, and to just as the fields of public interest and public welfare have said, the indispensable means for the attainment of legitimate
enjoin the Secretary of Finance and all other persons acting under become almost all-embracing and have transcended human aspirations of any democratic society. There can be no absolute
him, particularly city and municipal treasurers, from enforcing its foresight. Otherwise stated, as we cannot foresee the needs and power, whoever exercise it, for that would be tyranny. Yet there
provisions. Petitioner attacks the constitutionality of the Act, demands of public interest and welfare in this constantly changing can neither be absolute liberty, for that would mean license and
contending that: (1) it denies to alien residents the equal and progressive world, so we cannot delimit beforehand the anarchy. So the State can deprive persons of life, liberty and
protection of the laws and deprives of their liberty and property extent or scope of police power by which and through which the property, provided there is due process of law; and persons may
without due process of law ; (2) the subject of the Act is not State seeks to attain or achieve interest or welfare. So it is that be classified into classes and groups, provided everyone is given
expressed or comprehended in the title thereof; (3) the Act Constitutions do not define the scope or extent of the police the equal protection of the law. The test or standard, as always, is
violates international and treaty obligations of the Republic of the power of the State; what they do is to set forth the limitations reason. The police power legislation must be firmly grounded on
Philippines; (4) the provisions of the Act against the transmission thereof. The most important of these are the due process clause public interest and welfare, and a reasonable relation must exist
by aliens of their retail business thru hereditary succession, and and the equal protection clause. between purposes and means. And if distinction and classification
those requiring 100% Filipino capitalization for a corporation or b. Limitations on police power. — has been made, there must be a reasonable basis for said
entity to entitle it to engage in the retail business, violate the The basic limitations of due process and equal protection are distinction.
spirit of Sections 1 and 5, Article XIII and Section 8 of Article XIV of found in the following provisions of our Constitution: e. Legislative discretion not subject to judicial review. —
the Constitution. SECTION 1.(1) No person shall be deprived of life, liberty or Now, in this matter of equitable balancing, what is the proper
In answer, the Solicitor-General and the Fiscal of the City of property without due process of law, nor any person be denied place and role of the courts? It must not be overlooked, in the
Manila contend that: (1) the Act was passed in the valid exercise the equal protection of the laws. (Article III, Phil. Constitution) first place, that the legislature, which is the constitutional
of the police power of the State, which exercise is authorized in These constitutional guarantees which embody the essence of repository of police power and exercises the prerogative of
the Constitution in the interest of national economic survival; (2) individual liberty and freedom in democracies, are not limited to determining the policy of the State, is by force of circumstances
the Act has only one subject embraced in the title; (3) no treaty or citizens alone but are admittedly universal in their application, primarily the judge of necessity, adequacy or reasonableness and
international obligations are infringed; (4) as regards hereditary without regard to any differences of race, of color, or of wisdom, of any law promulgated in the exercise of the police
succession, only the form is affected but the value of the property nationality. (Yick Wo vs. Hopkins, 30, L. ed. 220, 226.) power, or of the measures adopted to implement the public
is not impaired, and the institution of inheritance is only of c. The, equal protection clause. — policy or to achieve public interest. On the other hand, courts,
statutory origin. The equal protection of the law clause is against undue favor and although zealous guardians of individual liberty and right, have
IV. Preliminary consideration of legal principles involved individual or class privilege, as well as hostile discrimination or the nevertheless evinced a reluctance to interfere with the exercise of
a. The police power. — oppression of inequality. It is not intended to prohibit legislation, the legislative prerogative. They have done so early where there
There is no question that the Act was approved in the exercise of which is limited either in the object to which it is directed or by has been a clear, patent or palpable arbitrary and unreasonable
the police power, but petitioner claims that its exercise in this territory within which is to operate. It does not demand absolute abuse of the legislative prerogative. Moreover, courts are not
instance is attended by a violation of the constitutional equality among residents; it merely requires that all persons shall supposed to override legitimate policy, and courts never inquire
requirements of due process and equal protection of the laws. But be treated alike, under like circumstances and conditions both as into the wisdom of the law.
before proceeding to the consideration and resolution of the to privileges conferred and liabilities enforced. The equal V. Economic problems sought to be remedied
ultimate issue involved, it would be well to bear in mind certain protection clause is not infringed by legislation which applies only With the above considerations in mind, we will now proceed to
basic and fundamental, albeit preliminary, considerations in the to those persons falling within a specified class, if it applies alike delve directly into the issue involved. If the disputed legislation
determination of the ever recurrent conflict between police to all persons within such class, and reasonable grounds exists for were merely a regulation, as its title indicates, there would be no
power and the guarantees of due process and equal protection of making a distinction between those who fall within such class and question that it falls within the legitimate scope of legislative
the laws. What is the scope of police power, and how are the due those who do not. (2 Cooley, Constitutional Limitations, 824-825.) power. But it goes further and prohibits a group of residents, the
process and equal protection clauses related to it? What is the d. The due process clause. — aliens, from engaging therein. The problem becomes more
province and power of the legislature, and what is the function The due process clause has to do with the reasonableness of complex because its subject is a common, trade or occupation, as
and duty of the courts? These consideration must be clearly and legislation enacted in pursuance of the police power. Is there old as society itself, which from the immemorial has always been
correctly understood that their application to the facts of the case public interest, a public purpose; is public welfare involved? Is the open to residents, irrespective of race, color or citizenship.
may be brought forth with clarity and the issue accordingly Act reasonably necessary for the accomplishment of the a. Importance of retail trade in the economy of the nation. —
resolved. legislature's purpose; is it not unreasonable, arbitrary or In a primitive economy where families produce all that they
It has been said the police power is so far - reaching in scope, that oppressive? Is there sufficient foundation or reason in connection consume and consume all that they produce, the dealer, of
it has become almost impossible to limit its sweep. As it derives its with the matter involved; or has there not been a capricious use course, is unknown. But as group life develops and families begin
existence from the very existence of the State itself, it does not of the legislative power? Can the aims conceived be achieved by to live in communities producing more than what they consume
need to be expressed or defined in its scope; it is said to be co- the means used, or is it not merely an unjustified interference and needing an infinite number of things they do not produce, the
 21

dealer comes into existence. As villages develop into big Petitioner denies that there is alien predominance and control in
communities and specialization in production begins, the dealer's the retail trade. In one breath it is said that the fear is unfounded
AVERAGE
importance is enhanced. Under modern conditions and standards and the threat is imagined; in another, it is charged that the law is
ASSETS AND GROSS SALES PER ESTABLISHMENT
of living, in which man's needs have multiplied and diversified to merely the result of radicalism and pure and unabashed
unlimited extents and proportions, the retailer comes as essential nationalism. Alienage, it is said, is not an element of control; also
as the producer, because thru him the infinite variety of articles, so many unmanageable factors in the retail business make control Year and Retailer's
goods and needed for daily life are placed within the easy reach of virtually impossible. The first argument which brings up an issue Nationality
consumers. Retail dealers perform the functions of capillaries in of fact merits serious consideration. The others are matters of
the human body, thru which all the needed food and supplies are opinion within the exclusive competence of the legislature and
ministered to members of the communities comprising the beyond our prerogative to pass upon and decide. 1941:
nation. The best evidence are the statistics on the retail trade, which put
There cannot be any question about the importance of the down the figures in black and white. Between the constitutional Filipino .............................................
retailer in the life of the community. He ministers to the resident's convention year (1935), when the fear of alien domination and
daily needs, food in all its increasing forms, and the various little control of the retail trade already filled the minds of our leaders Chinese ..............................................
gadgets and things needed for home and daily life. He provides his with fears and misgivings, and the year of the enactment of the
customers around his store with the rice or corn, the fish, the salt, nationalization of the retail trade act (1954), official statistics Others ...............................................
the vinegar, the spices needed for the daily cooking. He has cloths unmistakably point out to the ever-increasing dominance and
to sell, even the needle and the thread to sew them or darn the control by the alien of the retail trade, as witness the following 1947:
clothes that wear out. The retailer, therefore, from the lowly tables:
peddler, the owner of a small sari-sari store, to the operator of a Assets Filipino .............................................
Gross Sales
department store or, a supermarket is so much a part of day-to-
day existence. Year and Retailers No.- Per cent Per cent
Pesos Pesos Chinese ...........................................
b. The alien retailer's trait. — Nationality Establishments Distribution Distribution
The alien retailer must have started plying his trades in this 1941: Others ..............................................
country in the bigger centers of population (Time there was when
he was unknown in provincial towns and villages). Slowly but Filipino .......... 106,671 200,323,138 55.82 174,181,924 51.74
1948: (Census)
gradually be invaded towns and villages; now he predominates in Chinese ........... 15,356 118,348,692 32.98 148,813,239 44.21
the cities and big centers of population. He even pioneers, in far Filipino .............................................
Others ............ 1,646 40,187,090 11.20 13,630,239 4.05
away nooks where the beginnings of community life appear,
ministering to the daily needs of the residents and purchasing 1947:
Chinese .............................................
their agricultural produce for sale in the towns. It is an undeniable
Filipino .......... 111,107 208,658,946 65.05 279,583,333 57.03
fact that in many communities the alien has replaced the native
Chinese ........... 13,774 106,156,218 33.56 Others
205,701,134 ..............................................
41.96
retailer. He has shown in this trade, industry without limit, and
the patience and forbearance of a slave. Others ........... 354 8,761,260 .49 1949: 4,927,168 1.01
Derogatory epithets are hurled at him, but he laughs these off
without murmur; insults of ill-bred and insolent neighbors and 1948: (Census)
customers are made in his face, but he heeds them not, and he Filipino .............................................
Filipino .......... 113,631 213,342,264 67.30 467,161,667 60.51
forgets and forgives. The community takes note of him, as he
appears to be harmless and extremely useful. Chinese .......... 12,087 93,155,459 29.38 Chinese ..............................................
294,894,227 38.20
c. Alleged alien control and dominance. — Others .......... 422 10,514,675 3.32 9,995,402 1.29
There is a general feeling on the part of the public, which appears Others ..............................................
to be true to fact, about the controlling and dominant position 1949:
that the alien retailer holds in the nation's economy. Food and Filipino .......... 113,659 213,451,602 60.89 1951: 462,532,901 53.47
other essentials, clothing, almost all articles of daily life reach the
residents mostly through him. In big cities and centers of Chinese .......... 16,248 125,223,336 35.72 392,414,875 45.36
Filipino .............................................
population he has acquired not only predominance, but apparent Others .......... 486 12,056,365 3.39 10,078,364 1.17
control over distribution of almost all kinds of goods, such as Chinese .............................................
1951:
lumber, hardware, textiles, groceries, drugs, sugar, flour, garlic,
and scores of other goods and articles. And were it not for some Filipino ......... 119,352 224,053,620 61.09 466,058,052 53.07
Others ...............................................
national corporations like the Naric, the Namarco, the Facomas
Chinese .......... 17,429 134,325,303 36.60 Assets and
(Estimated 404,481,384 46.06
Gross Sales of Retail Establishments, By
and the Acefa, his control over principal foods and products
would easily become full and complete. Others .......... 347 8,614,025 Year2.31
and Nationality of Owners, Benchmark:
7,645,327 87 1948 Census, issued
 22

by the Bureau of Census and Statistics, Department of Commerce somewhat the same way that it did in the crusade for political and intolerable practices, the mention of a few of which would
and Industry; pp. 18-19 of Answer.) freedom. Thus . . . it (the Constitution) envisages an organized suffice for our purposes; that at some time or other they have
The above statistics do not include corporations and partnerships, movement for the protection of the nation not only against the cornered the market of essential commodities, like corn and rice,
while the figures on Filipino establishments already include mere possibilities of armed invasion but also against its economic creating artificial scarcities to justify and enhance profits to
market vendors, whose capital is necessarily small.. subjugation by alien interests in the economic field. (Phil. Political unreasonable proportions; that they have hoarded essential foods
The above figures reveal that in percentage distribution of assests Law by Sinco, 10th ed., p. 476.) to the inconvenience and prejudice of the consuming public, so
and gross sales, alien participation has steadily increased during Belief in the existence of alien control and predominance is felt in much so that the Government has had to establish the National
the years. It is true, of course, that Filipinos have the edge in the other quarters. Filipino businessmen, manufacturers and Rice and Corn Corporation to save the public from their
number of retailers, but aliens more than make up for the producers believe so; they fear the dangers coming from alien continuous hoarding practices and tendencies; that they have
numerical gap through their assests and gross sales which average control, and they express sentiments of economic independence. violated price control laws, especially on foods and essential
between six and seven times those of the very many Filipino Witness thereto is Resolution No. 1, approved on July 18, 1953, of commodities, such that the legislature had to enact a law (Sec. 9,
retailers. Numbers in retailers, here, do not imply superiority; the the Fifth National convention of Filipino Businessmen, and a Republic Act No. 1168), authorizing their immediate and
alien invests more capital, buys and sells six to seven times more, similar resolution, approved on March 20, 1954, of the Second automatic deportation for price control convictions; that they
and gains much more. The same official report, pointing out to National Convention of Manufacturers and Producers. The man in have secret combinations among themselves to control prices,
the known predominance of foreign elements in the retail trade, the street also believes, and fears, alien predominance and cheating the operation of the law of supply and demand; that
remarks that the Filipino retailers were largely engaged in minor control; so our newspapers, which have editorially pointed out they have connived to boycott honest merchants and traders who
retailer enterprises. As observed by respondents, the native not only to control but to alien stranglehold. We, therefore, find would not cater or yield to their demands, in unlawful restraint of
investment is thinly spread, and the Filipino retailer is practically alien domination and control to be a fact, a reality proved by freedom of trade and enterprise. They are believed by the public
helpless in matters of capital, credit, price and supply. official statistics, and felt by all the sections and groups that to have evaded tax laws, smuggled goods and money into and out
d. Alien control and threat, subject of apprehension in compose the Filipino community. of the land, violated import and export prohibitions, control laws
Constitutional convention. — e. Dangers of alien control and dominance in retail. — and the like, in derision and contempt of lawful authority. It is also
It is this domination and control, which we believe has been But the dangers arising from alien participation in the retail trade believed that they have engaged in corrupting public officials with
sufficiently shown to exist, that is the legislature's target in the does not seem to lie in the predominance alone; there is a fabulous bribes, indirectly causing the prevalence of graft and
enactment of the disputed nationalization would never have been prevailing feeling that such predominance may truly endanger the corruption in the Government. As a matter of fact appeals to
adopted. The framers of our Constitution also believed in the national interest. With ample capital, unity of purpose and action unscrupulous aliens have been made both by the Government
existence of this alien dominance and control when they and thorough organization, alien retailers and merchants can act and by their own lawful diplomatic representatives, action which
approved a resolution categorically declaring among other things, in such complete unison and concert on such vital matters as the impliedly admits a prevailing feeling about the existence of many
that "it is the sense of the Convention that the public interest fixing of prices, the determination of the amount of goods or of the above practices.
requires the nationalization of the retail trade; . . . ." (II Aruego, articles to be made available in the market, and even the choice The circumstances above set forth create well founded fears that
The Framing of the Philippine Constitution, 662-663, quoted on of the goods or articles they would or would not patronize or worse things may come in the future. The present dominance of
page 67 of Petitioner.) That was twenty-two years ago; and the distribute, that fears of dislocation of the national economy and the alien retailer, especially in the big centers of population,
events since then have not been either pleasant or comforting. of the complete subservience of national economy and of the therefore, becomes a potential source of danger on occasions of
Dean Sinco of the University of the Philippines College of Law, consuming public are not entirely unfounded. Nationals, war or other calamity. We do not have here in this country
commenting on the patrimony clause of the Preamble opines that producers and consumers alike can be placed completely at their isolated groups of harmless aliens retailing goods among
the fathers of our Constitution were merely translating the mercy. This is easily illustrated. Suppose an article of daily use is nationals; what we have are well organized and powerful groups
general preoccupation of Filipinos "of the dangers from alien desired to be prescribed by the aliens, because the producer or that dominate the distribution of goods and commodities in the
interests that had already brought under their control the importer does not offer them sufficient profits, or because a new communities and big centers of population. They owe no
commercial and other economic activities of the country" (Sinco, competing article offers bigger profits for its introduction. All that allegiance or loyalty to the State, and the State cannot rely upon
Phil. Political Law, 10th ed., p. 114); and analyzing the concern of aliens would do is to agree to refuse to sell the first article, them in times of crisis or emergency. While the national holds his
the members of the constitutional convention for the economic eliminating it from their stocks, offering the new one as a life, his person and his property subject to the needs of his
life of the citizens, in connection with the nationalistic provisions substitute. Hence, the producers or importers of the prescribed country, the alien may even become the potential enemy of the
of the Constitution, he says: article, or its consumers, find the article suddenly out of the State.
But there has been a general feeling that alien dominance over prescribed article, or its consumers, find the article suddenly out f. Law enacted in interest of national economic survival and
the economic life of the country is not desirable and that if such a of circulation. Freedom of trade is thus curtailed and free security. —
situation should remain, political independence alone is no enterprise correspondingly suppressed. We are fully satisfied upon a consideration of all the facts and
guarantee to national stability and strength. Filipino private We can even go farther than theoretical illustrations to show the circumstances that the disputed law is not the product of racial
capital is not big enough to wrest from alien hands the control of pernicious influences of alien domination. Grave abuses have hostility, prejudice or discrimination, but the expression of the
the national economy. Moreover, it is but of recent formation and characterized the exercise of the retail trade by aliens. It is a fact legitimate desire and determination of the people, thru their
hence, largely inexperienced, timid and hesitant. Under such within judicial notice, which courts of justice may not properly authorized representatives, to free the nation from the economic
conditions, the government as the instrumentality of the national overlook or ignore in the interests of truth and justice, that there situation that has unfortunately been saddled upon it rightly or
will, has to step in and assume the initiative, if not the leadership, exists a general feeling on the part of the public that alien wrongly, to its disadvantage. The law is clearly in the interest of
in the struggle for the economic freedom of the nation in participation in the retail trade has been attended by a pernicious the public, nay of the national security itself, and indisputably falls
 23

within the scope of police power, thru which and by which the prerogative of the law-making power. Since the Court finds that concurring opinion of Justice Johnson in the case of Gibbons vs.
State insures its existence and security and the supreme welfare the classification is actual, real and reasonable, and all persons of Ogden, 9 Wheat., I, as follows:
of its citizens. one class are treated alike, and as it cannot be said that the "Licensing acts, in fact, in legislation, are universally restraining
VI. The Equal Protection Limitation classification is patently unreasonable and unfounded, it is in duty acts; as, for example, acts licensing gaming houses, retailers of
a. Objections to alien participation in retail trade. — The next bound to declare that the legislature acted within its legitimate spirituous liquors, etc. The act, in this instance, is distinctly of that
question that now poses solution is, Does the law deny the equal prerogative and it can not declare that the act transcends the limit character, and forms part of an extensive system, the object of
protection of the laws? As pointed out above, the mere fact of of equal protection established by the Constitution. which is to encourage American shipping, and place them on an
alienage is the root and cause of the distinction between the alien Broadly speaking, the power of the legislature to make equal footing with the shipping of other nations. Almost every
and the national as a trader. The alien resident owes allegiance to distinctions and classifications among persons is not curtailed or commercial nation reserves to its own subjects a monopoly of its
the country of his birth or his adopted country; his stay here is for denied by the equal protection of the laws clause. The legislative coasting trade; and a countervailing privilege in favor of American
personal convenience; he is attracted by the lure of gain and power admits of a wide scope of discretion, and a law can be shipping is contemplated, in the whole legislation of the United
profit. His aim or purpose of stay, we admit, is neither illegitimate violative of the constitutional limitation only when the States on this subject. It is not to give the vessel an American
nor immoral, but he is naturally lacking in that spirit of loyalty and classification is without reasonable basis. In addition to the character, that the license is granted; that effect has been
enthusiasm for this country where he temporarily stays and authorities we have earlier cited, we can also refer to the case correctly attributed to the act of her enrollment. But it is to confer
makes his living, or of that spirit of regard, sympathy and of Linsey vs. Natural Carbonic Fas Co. (1911), 55 L. ed., 369, which on her American privileges, as contra distinguished from foreign;
consideration for his Filipino customers as would prevent him clearly and succinctly defined the application of equal protection and to preserve the Government from fraud by foreigners; in
from taking advantage of their weakness and exploiting them. The clause to a law sought to be voided as contrary thereto: surreptitiously intruding themselves into the American
faster he makes his pile, the earlier can the alien go back to his . . . . "1. The equal protection clause of the Fourteenth commercial marine, as well as frauds upon the revenue in the
beloved country and his beloved kin and countrymen. The Amendment does not take from the state the power to classify in trade coastwise, that this whole system is projected."
experience of the country is that the alien retailer has shown such the adoption of police laws, but admits of the exercise of the wide The rule in general is as follows:
utter disregard for his customers and the people on whom he scope of discretion in that regard, and avoids what is done only Aliens are under no special constitutional protection which forbids
makes his profit, that it has been found necessary to adopt the when it is without any reasonable basis, and therefore is purely a classification otherwise justified simply because the limitation of
legislation, radical as it may seem. arbitrary. 2. A classification having some reasonable basis does the class falls along the lines of nationality. That would be
Another objection to the alien retailer in this country is that he not offend against that clause merely because it is not made with requiring a higher degree of protection for aliens as a class than
never really makes a genuine contribution to national income and mathematical nicety, or because in practice it results in some for similar classes than for similar classes of American citizens.
wealth. He undoubtedly contributes to general distribution, but inequality. 3. When the classification in such a law is called in Broadly speaking, the difference in status between citizens and
the gains and profits he makes are not invested in industries that question, if any state of facts reasonably can be conceived that aliens constitutes a basis for reasonable classification in the
would help the country's economy and increase national wealth. would sustain it, the existence of that state of facts at the time exercise of police power. (2 Am., Jur. 468-469.)
The alien's interest in this country being merely transient and the law was enacted must be assumed. 4. One who assails the In Commonwealth vs. Hana, 81 N. E. 149 (Massachusetts, 1907), a
temporary, it would indeed be ill-advised to continue entrusting classification in such a law must carry the burden of showing that statute on the licensing of hawkers and peddlers, which provided
the very important function of retail distribution to his hands. it does not rest upon any reasonable basis but is essentially that no one can obtain a license unless he is, or has declared his
The practices resorted to by aliens in the control of distribution, arbitrary." intention, to become a citizen of the United States, was held valid,
as already pointed out above, their secret manipulations of stocks c. Authorities recognizing citizenship as basis for classification. — for the following reason: It may seem wise to the legislature to
of commodities and prices, their utter disregard of the welfare of The question as to whether or not citizenship is a legal and valid limit the business of those who are supposed to have regard for
their customers and of the ultimate happiness of the people of ground for classification has already been affirmatively decided in the welfare, good order and happiness of the community, and the
the nation of which they are mere guests, which practices, this jurisdiction as well as in various courts in the United States. In court cannot question this judgment and conclusion. In Bloomfield
manipulations and disregard do not attend the exercise of the the case of Smith Bell & Co. vs. Natividad, 40 Phil. 136, where the vs. State, 99 N. E. 309 (Ohio, 1912), a statute which prevented
trade by the nationals, show the existence of real and actual, validity of Act No. 2761 of the Philippine Legislature was in issue, certain persons, among them aliens, from engaging in the traffic
positive and fundamental differences between an alien and a because of a condition therein limiting the ownership of vessels of liquors, was found not to be the result of race hatred, or in
national which fully justify the legislative classification adopted in engaged in coastwise trade to corporations formed by citizens of hospitality, or a deliberate purpose to discriminate, but was based
the retail trade measure. These differences are certainly a valid the Philippine Islands or the United States, thus denying the right on the belief that an alien cannot be sufficiently acquainted with
reason for the State to prefer the national over the alien in the to aliens, it was held that the Philippine Legislature did not violate "our institutions and our life as to enable him to appreciate the
retail trade. We would be doing violence to fact and reality were the equal protection clause of the Philippine Bill of Rights. The relation of this particular business to our entire social fabric", and
we to hold that no reason or ground for a legitimate distinction legislature in enacting the law had as ultimate purpose the was not, therefore, invalid. In Ohio ex rel. Clarke vs. Deckebach,
can be found between one and the other. encouragement of Philippine shipbuilding and the safety for these 274 U. S. 392, 71 L. ed. 115 (1926), the U.S. Supreme Court had
b. Difference in alien aims and purposes sufficient basis for Islands from foreign interlopers. We held that this was a valid under consideration an ordinance of the city of Cincinnati
distinction. — exercise of the police power, and all presumptions are in favor of prohibiting the issuance of licenses (pools and billiard rooms) to
The above objectionable characteristics of the exercise of the its constitutionality. In substance, we held that the limitation of aliens. It held that plainly irrational discrimination against aliens is
retail trade by the aliens, which are actual and real, furnish domestic ownership of vessels engaged in coastwise trade to prohibited, but it does not follow that alien race and allegiance
sufficient grounds for legislative classification of retail traders into citizens of the Philippines does not violate the equal protection of may not bear in some instances such a relation to a legitimate
nationals and aliens. Some may disagree with the wisdom of the the law and due process or law clauses of the Philippine Bill of object of legislation as to be made the basis of permitted
legislature's classification. To this we answer, that this is the Rights. In rendering said decision we quoted with approval the classification, and that it could not state that the legislation is
 24

clearly wrong; and that latitude must be allowed for the legislative right to be advised of their business and to direct its conduct. The . . . . And the guaranty of due process, as has often been held,
appraisement of local conditions and for the legislative choice of real reason for the decision, therefore, is the court's belief that no demands only that the law shall not be unreasonable, arbitrary or
methods for controlling an apprehended evil. The case of State vs. public benefit would be derived from the operations of the law capricious, and that the means selected shall have a real and
Carrol, 124 N. E. 129 (Ohio, 1919) is a parallel case to the one at and on the other hand it would deprive Chinese of something substantial relation to the subject sought to be attained. . . . .
bar. In Asakura vs. City of Seattle, 210 P. 30 (Washington, 1922), indispensable for carrying on their business. In Yick Wo vs. xxx xxx xxx
the business of pawn brooking was considered as having Hopkins, 30 L. ed 220 (1885) an ordinance conferring powers on So far as the requirement of due process is concerned and in the
tendencies injuring public interest, and limiting it to citizens is officials to withhold consent in the operation of laundries both as absence of other constitutional restriction a state is free to adopt
within the scope of police power. A similar statute denying aliens to persons and place, was declared invalid, but the court said that whatever economic policy may reasonably be deemed to promote
the right to engage in auctioneering was also sustained in Wright the power granted was arbitrary, that there was no reason for the public welfare, and to enforce that policy by legislation adapted to
vs. May, L.R.A., 1915 P. 151 (Minnesota, 1914). So also in Anton discrimination which attended the administration and its purpose. The courts are without authority either to declare
vs. Van Winkle, 297 F. 340 (Oregon, 1924), the court said that implementation of the law, and that the motive thereof was mere such policy, or, when it is declared by the legislature, to override
aliens are judicially known to have different interests, knowledge, racial hostility. In State vs. Montgomery, 47 A. 165 (Maine, 1900), it. If the laws passed are seen to have a reasonable relation to a
attitude, psychology and loyalty, hence the prohibitions of a law prohibiting aliens to engage as hawkers and peddlers was proper legislative purpose, and are neither arbitrary nor
issuance of licenses to them for the business of pawnbroker, pool, declared void, because the discrimination bore no reasonable and discriminatory, the requirements of due process are satisfied, and
billiard, card room, dance hall, is not an infringement of just relation to the act in respect to which the classification was judicial determination to that effect renders a court functus
constitutional rights. In Templar vs. Michigan State Board of proposed. officio. . . . (Nebbia vs. New York, 78 L. ed. 940, 950, 957.)
Examiners, 90 N.W. 1058 (Michigan, 1902), a law prohibiting the The case at bar is radically different, and the facts make them so. Another authority states the principle thus:
licensing of aliens as barbers was held void, but the reason for the As we already have said, aliens do not naturally possess the . . . . Too much significance cannot be given to the word
decision was the court's findings that the exercise of the business sympathetic consideration and regard for the customers with "reasonable" in considering the scope of the police power in a
by the aliens does not in any way affect the morals, the health, or whom they come in daily contact, nor the patriotic desire to help constitutional sense, for the test used to determine the
even the convenience of the community. In Takahashi vs. Fish and bolster the nation's economy, except in so far as it enhances their constitutionality of the means employed by the legislature is to
Game Commission, 92 L. ed. 1479 (1947), a California statute profit, nor the loyalty and allegiance which the national owes to inquire whether the restriction it imposes on rights secured to
banning the issuance of commercial fishing licenses to person the land. These limitations on the qualifications of the aliens have individuals by the Bill of Rights are unreasonable, and not whether
ineligible to citizenship was held void, because the law conflicts been shown on many occasions and instances, especially in times it imposes any restrictions on such rights. . . .
with Federal power over immigration, and because there is no of crisis and emergency. We can do no better than borrow the xxx xxx xxx
public interest in the mere claim of ownership of the waters and language of Anton vs. Van Winkle, 297 F. 340, 342, to drive home . . . . A statute to be within this power must also be reasonable in
the fish in them, so there was no adequate justification for the the reality and significance of the distinction between the alien its operation upon the persons whom it affects, must not be for
discrimination. It further added that the law was the outgrowth of and the national, thus: the annoyance of a particular class, and must not be unduly
antagonism toward the persons of Japanese ancestry. However, . . . . It may be judicially known, however, that alien coming into oppressive. (11 Am. Jur. Sec. 302., 1:1)- 1074-1075.)
two Justices dissented on the theory that fishing rights have been this country are without the intimate knowledge of our laws, In the case of Lawton vs. Steele, 38 L. ed. 385, 388. it was also
treated traditionally as natural resources. In Fraser vs. McConway customs, and usages that our own people have. So it is likewise held:
& Tarley Co., 82 Fed. 257 (Pennsylvania, 1897), a state law which known that certain classes of aliens are of different psychology . . . . To justify the state in thus interposing its authority in behalf
imposed a tax on every employer of foreign-born unnaturalized from our fellow countrymen. Furthermore, it is natural and of the public, it must appear, first, that the interests of the public
male persons over 21 years of age, was declared void because the reasonable to suppose that the foreign born, whose allegiance is generally, as distinguished from those of a particular class, require
court found that there was no reason for the classification and the first to their own country, and whose ideals of governmental such interference; and second, that the means are reasonably
tax was an arbitrary deduction from the daily wage of an environment and control have been engendered and formed necessary for the accomplishment of the purpose, and not unduly
employee. under entirely different regimes and political systems, have not oppressive upon individuals. . . .
d. Authorities contra explained. — the same inspiration for the public weal, nor are they as well Prata Undertaking Co. vs. State Board of Embalming, 104 ALR,
It is true that some decisions of the Federal court and of the State disposed toward the United States, as those who by citizenship, 389, 395, fixes this test of constitutionality:
courts in the United States hold that the distinction between are a part of the government itself. Further enlargement, is In determining whether a given act of the Legislature, passed in
aliens and citizens is not a valid ground for classification. But in unnecessary. I have said enough so that obviously it cannot be the exercise of the police power to regulate the operation of a
this decision the laws declared invalid were found to be either affirmed with absolute confidence that the Legislature was business, is or is not constitutional, one of the first questions to be
arbitrary, unreasonable or capricious, or were the result or without plausible reason for making the classification, and considered by the court is whether the power as exercised has a
product of racial antagonism and hostility, and there was no therefore appropriate discriminations against aliens as it relates sufficient foundation in reason in connection with the matter
question of public interest involved or pursued. In Yu Cong Eng vs. to the subject of legislation. . . . . involved, or is an arbitrary, oppressive, and capricious use of that
Trinidad, 70 L. ed. 1059 (1925), the United States Supreme Court VII. The Due Process of Law Limitation. power, without substantial relation to the health, safety, morals,
declared invalid a Philippine law making unlawful the keeping of a. Reasonability, the test of the limitation; determination by comfort, and general welfare of the public.
books of account in any language other than English, Spanish or legislature decisive. — b. Petitioner's argument considered. —
any other local dialect, but the main reasons for the decisions are: We now come to due process as a limitation on the exercise of Petitioner's main argument is that retail is a common, ordinary
(1) that if Chinese were driven out of business there would be no the police power. It has been stated by the highest authority in occupation, one of those privileges long ago recognized as
other system of distribution, and (2) that the Chinese would fall the United States that: essential to the orderly pursuant of happiness by free men; that it
prey to all kinds of fraud, because they would be deprived of their is a gainful and honest occupation and therefore beyond the
 25

power of the legislature to prohibit and penalized. This arguments subject to the economic control and domination of others, power of legislation, the Legislature was in duty bound to face the
overlooks fact and reality and rests on an incorrect assumption especially if not of their own race or country. The removal and problem and meet, through adequate measures, the danger and
and premise, i.e., that in this country where the occupation is eradication of the shackles of foreign economic control and threat that alien domination of retail trade poses to national
engaged in by petitioner, it has been so engaged by him, by the domination, is one of the noblest motives that a national economy.
alien in an honest creditable and unimpeachable manner, without legislature may pursue. It is impossible to conceive that legislation d. Provisions of law not unreasonable. —
harm or injury to the citizens and without ultimate danger to their that seeks to bring it about can infringe the constitutional A cursory study of the provisions of the law immediately reveals
economic peace, tranquility and welfare. But the Legislature has limitation of due process. The attainment of a legitimate how tolerant, how reasonable the Legislature has been. The law is
found, as we have also found and indicated, that the privilege has aspiration of a people can never be beyond the limits of legislative made prospective and recognizes the right and privilege of those
been so grossly abused by the alien, thru the illegitimate use of authority. already engaged in the occupation to continue therein during the
pernicious designs and practices, that he now enjoys a c. Law expressly held by Constitutional Convention to be within the rest of their lives; and similar recognition of the right to continue
monopolistic control of the occupation and threatens a deadly sphere of legislative action. — is accorded associations of aliens. The right or privilege is denied
stranglehold on the nation's economy endangering the national The framers of the Constitution could not have intended to to those only upon conviction of certain offenses. In the
security in times of crisis and emergency. impose the constitutional restrictions of due process on the deliberations of the Court on this case, attention was called to the
The real question at issue, therefore, is not that posed by attainment of such a noble motive as freedom from economic fact that the privilege should not have been denied to children
petitioner, which overlooks and ignores the facts and control and domination, thru the exercise of the police power. and heirs of aliens now engaged in the retail trade. Such provision
circumstances, but this, Is the exclusion in the future of aliens The fathers of the Constitution must have given to the legislature would defeat the law itself, its aims and purposes. Beside, the
from the retail trade unreasonable. Arbitrary capricious, taking full authority and power to enact legislation that would promote exercise of legislative discretion is not subject to judicial review. It
into account the illegitimate and pernicious form and manner in the supreme happiness of the people, their freedom and liberty. is well settled that the Court will not inquire into the motives of
which the aliens have heretofore engaged therein? As thus On the precise issue now before us, they expressly made their the Legislature, nor pass upon general matters of legislative
correctly stated the answer is clear. The law in question is voice clear; they adopted a resolution expressing their belief that judgment. The Legislature is primarily the judge of the necessity
deemed absolutely necessary to bring about the desired the legislation in question is within the scope of the legislative of an enactment or of any of its provisions, and every
legislative objective, i.e., to free national economy from alien power. Thus they declared the their Resolution: presumption is in favor of its validity, and though the Court may
control and dominance. It is not necessarily unreasonable because That it is the sense of the Convention that the public interest hold views inconsistent with the wisdom of the law, it may not
it affects private rights and privileges (11 Am. Jur. pp. 1080-1081.) requires the nationalization of retail trade; but it abstain from annul the legislation if not palpably in excess of the legislative
The test of reasonableness of a law is the appropriateness or approving the amendment introduced by the Delegate for Manila, power. Furthermore, the test of the validity of a law attacked as a
adequacy under all circumstances of the means adopted to carry Mr. Araneta, and others on this matter because it is convinced violation of due process, is not its reasonableness, but its
out its purpose into effect (Id.) Judged by this test, disputed that the National Assembly is authorized to promulgate a law unreasonableness, and we find the provisions are not
legislation, which is not merely reasonable but actually necessary, which limits to Filipino and American citizens the privilege to unreasonable. These principles also answer various other
must be considered not to have infringed the constitutional engage in the retail trade. (11 Aruego, The Framing of the arguments raised against the law, some of which are: that the law
limitation of reasonableness. Philippine Constitution, quoted on pages 66 and 67 of the does not promote general welfare; that thousands of aliens would
The necessity of the law in question is explained in the Memorandum for the Petitioner.) be thrown out of employment; that prices will increase because of
explanatory note that accompanied the bill, which later was It would do well to refer to the nationalistic tendency manifested the elimination of competition; that there is no need for the
enacted into law: in various provisions of the Constitution. Thus in the preamble, a legislation; that adequate replacement is problematical; that
This bill proposes to regulate the retail business. Its purpose is to principle objective is the conservation of the patrimony of the there may be general breakdown; that there would be
prevent persons who are not citizens of the Philippines from nation and as corollary the provision limiting to citizens of the repercussions from foreigners; etc. Many of these arguments are
having a strangle hold upon our economic life. If the persons who Philippines the exploitation, development and utilization of its directed against the supposed wisdom of the law which lies solely
control this vital artery of our economic life are the ones who owe natural resources. And in Section 8 of Article XIV, it is provided within the legislative prerogative; they do not import invalidity.
no allegiance to this Republic, who have no profound devotion to that "no franchise, certificate, or any other form of authorization VIII. Alleged defect in the title of the law
our free institutions, and who have no permanent stake in our for the operation of the public utility shall be granted except to A subordinate ground or reason for the alleged invalidity of the
people's welfare, we are not really the masters of our destiny. All citizens of the Philippines." The nationalization of the retail trade law is the claim that the title thereof is misleading or deceptive, as
aspects of our life, even our national security, will be at the mercy is only a continuance of the nationalistic protective policy laid it conceals the real purpose of the bill which is to nationalize the
of other people. down as a primary objective of the Constitution. Can it be said retail business and prohibit aliens from engaging therein. The
In seeking to accomplish the foregoing purpose, we do not that a law imbued with the same purpose and spirit underlying constitutional provision which is claimed to be violated in Section
propose to deprive persons who are not citizens of the Philippines many of the provisions of the Constitution is unreasonable, invalid 21 (1) of Article VI, which reads:
of their means of livelihood. While this bill seeks to take away and unconstitutional? No bill which may be enacted in the law shall embrace more than
from the hands of persons who are not citizens of the Philippines The seriousness of the Legislature's concern for the plight of the one subject which shall be expressed in the title of the bill.
a power that can be wielded to paralyze all aspects of our national nationals as manifested in the approval of the radical measures is, What the above provision prohibits is duplicity, that is, if its title
life and endanger our national security it respects existing rights. therefore, fully justified. It would have been recreant to its duties completely fails to appraise the legislators or the public of the
The approval of this bill is necessary for our national survival. towards the country and its people would it view the sorry plight nature, scope and consequences of the law or its operation (I
If political independence is a legitimate aspiration of a people, of the nationals with the complacency and refuse or neglect to Sutherland, Statutory Construction, Sec. 1707, p. 297.) A cursory
then economic independence is none the less legitimate. adopt a remedy commensurate with the demands of public consideration of the title and the provisions of the bill fails to
Freedom and liberty are not real and positive if the people are interest and national survival. As the repository of the sovereign show the presence of duplicity. It is true that the term "regulate"
 26

does not and may not readily and at first glance convey the idea reasons for declaring the law invalid ever existed. The objection provisions of the law are clearly embraced in the title, and this
of "nationalization" and "prohibition", which terms express the must therefore, be overruled. suffers from no duplicity and has not misled the legislators or the
two main purposes and objectives of the law. But "regulate" is a IX. Alleged violation of international treaties and obligations segment of the population affected; and that it cannot be said to
broader term than either prohibition or nationalization. Both of Another subordinate argument against the validity of the law is be void for supposed conflict with treaty obligations because no
these have always been included within the term regulation. the supposed violation thereby of the Charter of the United treaty has actually been entered into on the subject and the
Under the title of an act to "regulate", the sale of intoxicating Nations and of the Declaration of the Human Rights adopted by police power may not be curtailed or surrendered by any treaty or
liquors, the Legislature may prohibit the sale of intoxicating the United Nations General Assembly. We find no merit in the any other conventional agreement.
liquors. (Sweet vs. City of Wabash, 41 Ind., 7; quoted in page 41 of Nations Charter imposes no strict or legal obligations regarding Some members of the Court are of the opinion that the radical
Answer.) the rights and freedom of their subjects (Hans Kelsen, The Law of effects of the law could have been made less harsh in its impact
Within the meaning of the Constitution requiring that the subject the United Nations, 1951 ed. pp. 29-32), and the Declaration of on the aliens. Thus it is stated that the more time should have
of every act of the Legislature shall be stated in the tale, the title Human Rights contains nothing more than a mere been given in the law for the liquidation of existing businesses
to regulate the sale of intoxicating liquors, etc." sufficiently recommendation or a common standard of achievement for all when the time comes for them to close. Our legal duty, however,
expresses the subject of an actprohibiting the sale of such liquors peoples and all nations (Id. p. 39.) That such is the import of the is merely to determine if the law falls within the scope of
to minors and to persons in the habit of getting intoxicated; such United Nations Charter aid of the Declaration of Human Rights legislative authority and does not transcend the limitations of due
matters being properly included within the subject of regulating can be inferred the fact that members of the United Nations process and equal protection guaranteed in the Constitution.
the sale. (Williams vs. State, 48 Ind. 306, 308, quoted in p. 42 of Organizations, such as Norway and Denmark, prohibit foreigners Remedies against the harshness of the law should be addressed to
Answer.) from engaging in retail trade, and in most nations of the world the Legislature; they are beyond our power and jurisdiction.
The word "regulate" is of broad import, and necessarily implies laws against foreigners engaged in domestic trade are adopted. The petition is hereby denied, with costs against petitioner.
some degree of restraint and prohibition of acts usually done in The Treaty of Amity between the Republic of the Philippines and
connection with the thing to be regulated. While word regulate the Republic of China of April 18, 1947 is also claimed to be
does not ordinarily convey meaning of prohibit, there is no violated by the law in question. All that the treaty guarantees is
absolute reason why it should not have such meaning when used equality of treatment to the Chinese nationals "upon the same Republic of the Philippines
in delegating police power in connection with a thing the best or terms as the nationals of any other country." But the nationals of SUPREME COURT
only efficacious regulation of which involves suppression. (State China are not discriminating against because nationals of all other Manila
vs. Morton, 162 So. 718, 182 La. 887, quoted in p. 42 of Answer.) countries, except those of the United States, who are granted IN BANC
The general rule is for the use of general terms in the title of a bill; special rights by the Constitution, are all prohibited from engaging GR No. L-1337 October 16, 1948
it has also been said that the title need not be an index to the in the retail trade. But even supposing that the law infringes upon LO CHING AND SO YUN CHONG CO., Recurring,
entire contents of the law (I Sutherland, Statutory Construction, the said treaty, the treaty is always subject to qualification or vs.
See. 4803, p. 345.) The above rule was followed the title of the amendment by a subsequent law (U. S. vs. Thompson, 258, Fed. THE COURT OF APPEAL AND THE ROMAN CATHOLIC
Act in question adopted the more general term "regulate" instead 257, 260), and the same may never curtail or restrict the scope of ARCHBISHOP OF MANILA, appealed.
of "nationalize" or "prohibit". Furthermore, the law also contains the police power of the State (plaston vs. Pennsylvania, 58 L. ed. Messrs. Quisumbing, Sycip and Quisumbing on behalf of the
other rules for the regulation of the retail trade which may not be 539.) appellants.
included in the terms "nationalization" or "prohibition"; so were X. Conclusion Messrs. La oy Feria and Ignacio Lugtu in representation of the
the title changed from "regulate" to "nationalize" or "prohibit", Resuming what we have set forth above we hold that the respondents.
there would have been many provisions not falling within the disputed law was enacted to remedy a real actual threat and Messrs. DeWitt, Perkins and Ponce Enrile and Messrs. Nabong and
scope of the title which would have made the Act invalid. The use danger to national economy posed by alien dominance and Sese as amici curiae .
of the term "regulate", therefore, is in accord with the principle control of the retail business and free citizens and country from
governing the drafting of statutes, under which a simple or dominance and control; that the enactment clearly falls within the
general term should be adopted in the title, which would include scope of the police power of the State, thru which and by which it PABLO, J .:
all other provisions found in the body of the Act. protects its own personality and insures its security and future; It is an appeal against the decision issued by the Court of Appeal
One purpose of the constitutional directive that the subject of a that the law does not violate the equal protection clause of the in case CA-GR No. 102 (L-415).
bill should be embraced in its title is to apprise the legislators of Constitution because sufficient grounds exist for the distinction The proven facts, according to said Court, are as follows: On
the purposes, the nature and scope of its provisions, and prevent between alien and citizen in the exercise of the occupation August 30, 1940, the Archbishop of Manila through the Bank of
the enactment into law of matters which have received the regulated, nor the due process of law clause, because the law is the Philippine Islands leased to Lo Ching and So Yun Chong Co. the
notice, action and study of the legislators or of the public. In the prospective in operation and recognizes the privilege of aliens estate with Nos. 1095 to 1101 of R. Hidalgo Street, Manila, under
case at bar it cannot be claimed that the legislators have been already engaged in the occupation and reasonably protects their a monthly rent of P500 for the term of three years as of
appraised of the nature of the law, especially the nationalization privilege; that the wisdom and efficacy of the law to carry out its September 1, 1940, extendable to two years (two years upon
and the prohibition provisions. The legislators took active interest objectives appear to us to be plainly evident — as a matter of fact agreement of the parties). The tenant occupies the property
in the discussion of the law, and a great many of the persons it seems not only appropriate but actually necessary — and that in establishing a hotel in it. In February of 1942, the Japanese army
affected by the prohibitions in the law conducted a campaign any case such matter falls within the prerogative of the threw the tenants of the farm giving it to the German Otto
against its approval. It cannot be claimed, therefore, that the Legislature, with whose power and discretion the Judicial Schulze who occupied it until the month of January 1945, upon
department of the Government may not interfere; that the the arrival of the liberation army. In the first days of February of
 27

1945, the tenants reoccupied the farm, paying the corresponding 1945, until they evicted her without a pronouncement on As for the first term of three years, the terms of the contract are
monthly rent. Before the end of the month of August of the same costs. The Court of Appeal in its decision of January 30, 1947, so precise and so clear that they do not give rise to any doubt. As
year, the landlord required the tenants to vacate the farm, and confirmed this judgment with costs. I condemn the tenants to for the second term of two years, we declare that this extension
they refused. Therefore, the landlord on September 8, 1945 filed vacate the farm and pay their rent of P625 monthly from the first of the contract to another two additional years is optional for the
the claim for eviction in the Municipal Court of Manila, which on of September of 1945, plus damages in the amount of P500 and tenants: they can continue occupying the farm without the need
October 8, 1945, condemned the tenants to evict the farm and the costs of the trial. On appeal, the Court of First Instance of for the landlord to give his consent again because he has already
pay their monthly P625 income from the first of September of Manila issued a sentence condemning them to evict the farm, given it at the time of the granting of Exhibit "C" contract; but
1945, more damages in the amount of P500 and the costs of the paying their rent of P625 a month from September 1, 1945, until they are not obliged to occupy it, if it no longer suits them. In a
judgment. On appeal, the Court of First Instance of Manila issued they evicted her without a pronouncement on costs. The Court of similar matter, Cruz v. Alberto , 39 Jur. Fil., 1015, this Court said:
a sentence condemning them to evict the farm, paying their rent Appeal in its decision of January 30, 1947, confirmed this We believe that the Judge a quohe was in an entirely correct
of P625 a month from September 1, 1945, until they evicted her judgment with costs. I condemn the tenants to vacate the farm position in his interpretation of the contracts in question; and,
without a pronouncement on costs. The Court of Appeal in its and pay their rent of P625 monthly from the first of September of although it may be admitted that such an interpretation renders
decision of January 30, 1947, confirmed this judgment with 1945, plus damages in the amount of P500 and the costs of the the words "agreed upon by both parties" superfluous, yet this
costs. the landlord required the tenants to vacate the farm, and trial. On appeal, the Court of First Instance of Manila issued a does not give any force to the meaning of the entire sentence. If
they refused. Therefore, the landlord on September 8, 1945 filed sentence condemning them to evict the farm, paying their rent of the interpretation that the appellant wishes us to adopt is true, all
the claim for eviction in the Municipal Court of Manila, which on P625 a month from September 1, 1945, until they evicted her the clause relating to the extension of the term would be
October 8, 1945, condemned the tenants to evict the farm and without a pronouncement on costs. The Court of Appeal in its superfluous, because if the extension would only take place by
pay their monthly P625 income from the first of September of decision of January 30, 1947, confirmed this judgment with costs. virtue of a new agreement that the parties granted at the
1945, more damages in the amount of P500 and the costs of the The tenants, appellant in this action, by means of certiorari , expiration of the original term, for What to say about
judgment. On appeal, the Court of First Instance of Manila issued appeal against this decision before this Court, alleging that the extension? Those who are free to grant a lease, are certainly also
a sentence condemning them to evict the farm, paying their rent Court of Appeal made five errors, two of which, the third and to grant a new one when the previous one has expired, without
of P625 a month from September 1, 1945, until they evicted her fourth, raise questions of law. having to remind them of their power to do the same through the
without a pronouncement on costs. The Court of Appeal in its In addition to the allegations presented by the appellants and the insertion of a clause of this kind in the first lease. This would not
decision of January 30, 1947, confirmed this judgment with appellants, the attorneys Messrs. Dewitt, Perkins and Ponce only be superfluous, but meaningless. The clause relating to the
costs. the landlord required the tenants to vacate the farm, and Enrile, as amici curiae , presented their memorandum on October extension of the lease should be interpreted, if possible, in the
they refused. Therefore, the landlord on September 8, 1945 filed 21, 1947, and the attorneys Mr. Nabong and Sese also as amici sense of attributing some force to it.
the claim for eviction in the Municipal Court of Manila, which on curiae , the his on March 18, 1948. As we interpret the contracts that concern us, the parties
October 8, 1945, condemned the tenants to evict the farm and The review of judgments and decrees of the Court of Appeal is proposed to express the fact that they had already agreed that
pay their monthly P625 income from the first of September of limited only to matters in which it is only concerned with errors or there could be an extension of the lease, and that they had
1945, more damages in the amount of P500 and the costs of the questions of law. (Rule 46, Article 2, in relation to Article 2, Title agreed as to the duration of the lease, thus giving the defendant
judgment. On appeal, the Court of First Instance of Manila issued VIII of the Constitution of the Republic.) (Matthew vs. Customs the right to option to continue with the lease for a second term,
a sentence condemning them to evict the farm, paying their rent Administrator and Court of Appeal, 63 Jur. Fil., 500.) The or not to continue with the contract at the expiration of the
of P625 a month from September 1, 1945, until they evicted her jurisdiction of the Court Supremo is limited to reviewing and original term.
without a pronouncement on costs. The Court of Appeal in its examining the errors of law that may have been incurred by the By ministry of the lease contract that expired on August 31, 1945,
decision of January 30, 1947, confirmed this judgment with Court of Appeals. (Guico against Mayuga and others, 63 Jur. Fil., the tenants ceased to have the right to continue occupying the
costs. the landlord on September 8, 1945 filed the eviction suit in 352, Mamuyac vs. Abena, 1 38 Off Gaz., 84, Meneses against The farm. This contract has the force of law between the parties
the Municipal Court of Manila, which on October 8, 1945, Commonwealth of the Philippines, 2 40 Off Gaz. (7th Supp.) 41; (Article 1091, Civil Code). "If the lease has been made for a
condemned the tenants to vacate the farm and pay their rent of Onglengco vs.Ozaeta 3 , 40 Off. Gaz. (7th Supp.), specific period of time, it concludes on the prescribed day without
P625 monthly from the first of September 1945, plus damages in 186; Hernandez vs. Manila Electric Co., 4 40 Off. Gaz. 10th Supp.), the need for a requirement." (Article 1565, Civil Code.) The
the amount of P500 and the costs of the trial. On appeal, the 35; Gerio vs. Gerio, 5 40 Off. Gaz. (10th Supp.), 53; Garcia de decision, therefore, of the Court of Appeal ordering the tenants to
Court of First Instance of Manila issued a sentence condemning Ramos against Yatco, 6 40 Off. Gaz. (10th Supp.), vacate the farm and to pay P625 monthly rents from the first of
them to evict the farm, paying their rent of P625 a month from 124; Zubiri vs . Quijano, 7 2 Off. Gaz., 389; People vs . Benitez, 8 1 September 1945 until they vacate this agreement with the
September 1, 1945, until they evicted her without a Off. Gaz., 880; Of the Wings against the People of the Philippines, law. (Article 1569, Civil Code.)
pronouncement on costs. The Court of Appeal in its decision of RGR No. 49212.) The appellants contend that they have the right to occupy the
January 30, 1947, confirmed this judgment with costs. the We will only deal, therefore, with errors III and IV that raise issues farm for three full years; that his occupation must be effective,
landlord on September 8, 1945 filed the eviction suit in the of legal hermeneutics. material and continuous; that they should not be deprived of the
Municipal Court of Manila, which on October 8, 1945, condemned A paragraph of the lease signed by the parties is as follows: use and enjoyment of the farm; that the appellants have the right
the tenants to vacate the farm and pay their rent of P625 monthly 1. The party of the second part shall have and hold the said to deduct from that period of three years, all the time they have
from the first of September 1945, plus damages in the amount of premises for the full term of three years to be reckoned from ceased to enjoy the lease by disposition of the Japanese army.
P500 and the costs of the trial. On appeal, the Court of First September 1, 1940, but said period may be extended to another It is evident that the tenants have the perfect right to occupy the
Instance of Manila issued a sentence condemning them to evict two years upon agreement of the parties. (Record on appeal, page farm for the entire time of the lease and not only for three years
the farm, paying their rent of P625 a month from September 1, 22.) but for five, in accordance with the two agreed terms, and in
 28

effect they received it from the landlord and established a What do we mean by disturbance of mere fact ?, What by they are entitled to do so: it is judicial disturbance, which results
business in it. hotel, and that they had the full use and enjoyment disturbance of right? from a lawsuit filed before the Courts; It is judicial disturbance
of the farm before being thrown out by the The French Code, in its art. 1,725, says that the lessor is not also, by way of exception, which takes place when when the
Japanese. Furthermore, the landlord is obliged to keep the obliged to guarantee the lessee for the inconvenience caused by tenant persecutes the authors of a de facto disturbance, they
tenants in the peaceful enjoyment of the lease for the entire time third parties who have no right over the leased thing, without object that they have a right in the leased thing.
of the contract (Article 1554, paragraph 3, Civil Code). But this prejudice to the claims that the lessee may make in his own Pacifici Mazzoni announces the difference between de facto and
obligation does not go so far as to defend the tenants from the name; and in article 1,726 that if, on the contrary, the tenant or de jure disturbance, saying that the first occurs when the tenant's
depredations of the invading hordes. This is outside the material tenant has been bothered in his enjoyment as a consequence of enjoyment materially diminishes or impedes, without the
power and the legal obligation of the landlord. Assuming, for a an action related to the ownership of the property, he has the disturber claiming right over the thing or its enjoyment, and the
moment, that before the war broke out, a fresco would have been right to a proportional reduction in the price of the lease, having second, if tends to the same end, either with judicial acts, or with
smuggled into a room in the hotel of the appellants and that denounced that annoyance To the owner. extrajudicial acts with which the right of the tenant to the
despite the requirements would not have wanted to evict, was It seems to be deducted from these precepts that the disturbance enjoyment is answered, citing pretensions of right over the thing.
the landlord forced to throw from the property to the caused by those who do not have a right to the leased property Ricci points out two requirements to the inconvenience in fact to
owner? That intruder was not the owner of the property or the (although it may be held on different things related to it), should be borne by the tenant: first, that whoever causes it has no right
property, but the owner of possession, of the peaceful enjoyment be considered as a mere fact, and that the other that consists of over the leased thing, and second, that he has no right to do that
of the tenant. He did not occupy the room with pretentions of the exercise of an action that affects the property of the property, in which the nuisance or disturbance consists ; If one of these two
ownership: he only wanted to occupy the room illegally or for must be considered as of right. requirements is missing, the disturbance is of right.
free. The tenants had to direct their action against the owner who Laurent, explaining these precepts, says, that what characterizes Our Goyena, commenting on art. 1491 of the project of 1851, says
invaded his right of possession, that the owner had nothing to the disturbance of law, is that the third party claims or affirms that in no contract there is responsibility for the fortuitous cases,
answer. Was the landlord obliged to remove the owner from the that the thing leased does not belong to the landlord. However, and such turbacion must be considered as mere fact, as if foreign
farm? That intruder was not the owner of the property or the he adds, it can happen that a third party exercising a right that herds are introduced in the meadow that I have in lease, or I am
property, but the owner of possession, of the peaceful enjoyment corresponds to it, disturbs the enjoyment of the tenant: this third snatched at night the fruits , or I am violently expelled from the
of the tenant. He did not occupy the room with pretentions of party does not intend to have any right over the leased thing, and house I occupy. Later, he adds, that as long as the attack is not
ownership: he only wanted to occupy the room illegally or for in this sense there is no disturbance of right; the right under directed against the very property of the thing and judicially, the
free. The tenants had to direct their action against the owner who which the landlord has leased is not attacked, and yet the tenant's tenant is the only one attacked and he only has to defend
invaded his right of possession, that the owner had nothing to enjoyment is disturbed. To clarify whether in the latter case the himself. (10 Manresa 511-513).
answer. Was the landlord obliged to remove the owner from the landlord must respond to the tenant of the disturbance, the cited The appellants allege that they reoccupied the farm in February
farm? That intruder was not the owner of the property or the author distinguishes according to whether the disturbing acts 1945 and only resumed their hotel business in June because they
property, but the owner of possession, of the peaceful enjoyment come from the Administration or from an individual. had to throw 400 refugees out of it; repaired the destroyed parts
of the tenant. He did not occupy the room with pretentions of If they come from the Administration, it will be necessary to of the building by spending at least P5,000, to put it in conditions
ownership: he only wanted to occupy the room illegally or for distinguish again if this has worked within the circle of its for the hotel business; that the landlord allowed them to do all
free. The tenants had to direct their action against the owner who attributions, or if it exceeds and the act is illegal: if this last these things. For such circumstances - argue the appellants - the
invaded his right of possession, that the owner had nothing to occurred, the answer is not doubtful for Laurent; an illegal act is a landlord has made them believe that they could occupy the farm
answer. de facto way, and the ways in fact do not give rise to demand for more than 7 months and exploit the hotel business for more
Only the owner responds if the one that disturbs the possession responsibility to the lessor. than 2 months to recover their investment, and that if there was
of the title on the property. If a third party, claiming to have In the opposite case, that is, that the Administration has acted no express, at least , there was a little authorization. And they
bought the landlord's property, wishes to expel the tenants, they within its powers, the right of the lessee to address against the conclude: that the landlord is in estoppelto claim the termination
can demand that the landlord defend them. The obligation of the lessor and its lack of action against the Administration, are of the new lease contract that began in Februaro, 1945. This
landlord to guarantee peaceful enjoyment is not in all cases: only evident. theory is unsustainable. If the landlord did not object to the
in those in which the title of the farm has something to do with If the disturbing acts come from individuals, Laurent makes the reoccupation by the tenants of the farm in February 1945 and
the disturbance, when it is a matter of legal disturbance. When a same distinction as when they come from the Administration, if received the corresponding rent, he has not done more than
person by means of a judicial action wishes to deprive them of the the individual has acted in the exercise of a right that respect the tenants' right to occupy the farm because according
possession of the property to the tenants, the landlord is obliged corresponds, or if it has exceeded the: the solutions proposed are to the second additional term, they had the option
to defend them. Thus, article 1560 of the Civil Code provides: identical and by virtue of the same fundamentals. From which it is unquestionable to occupy the farm until August 31, 1945. If the
"The landlord is not obliged to respond to the disturbance caused deduced that there was no great need to distinguish between acts landlord agreed that the tenants reoccupied the property, it was
by a third party causing the use of the leased farm; but the tenant of the Administration and acts of individuals, to arrive at such a not under the understanding that they occupied it under a new
will have direct action against the disturber. There is no de facto result. tacit agreement but by virtue of the agreement already agreed by
disturbance when the third party, whether the Administration or Later, Laurent himself received the following distinctions from the Exhibit "C". If the tenants have made investments that they
an individual, has acted by virtue of a right that corresponds to it. Pothier: there is a de facto disturbance when the third parties have not been able to recover until August 31, 1945, no one but
" who carry it out do not claim to have any right in the property, themselves should be held responsible. They should know that
Manresa, commenting on this provision, says: nor in relation to the property, for example, if they make their the contract was a law between the parties and that they should
herds graze on the leased farm, although without alleging that end on August 31 of that year. There is no suchestoppel .
 29

Nor is the claim of the appellants that the reoccupation by them owner of the farm, this shows that they had not wanted to harm The appellants maintain that in the present case, the Court must
of the farm in February 1945, because the landlord received the him; the action was directed to the tenant, the owner of the grant the additional term in accordance with article 1124 of the
rents and for having allowed them to make repairs in the building, possession, the use and enjoyment of the lease. The deprivation Civil Code. This contention is wrong. The Court is not the lessor or
a new legal relationship of lease for a term of more than two of possession of the tenants by the Japanese soldiers was a simple agent of the lessor; therefore, it can not extend the lease term in
months and ask the Court to determine it taking into account the disturbance of mere fact and of which the landlord does not contravention of the precise terms of Exhibit C. The lessor or the
circumstances of the case. In support, they cite Article 1128 of the respond, according to the express disposition of article 1560 of Archbishop of Manila, as the government in the matter of
Civil Code that provides that "If the obligation does not set a the Civil Code. Under no conceptio should be deducted, therefore, mineral, forestry and mineral concessions, is the one that can
deadline, but of its nature and circumstances, it may be inferred the period of illegal occupation of Otto Schulze, the term of lease grant another term and not the Court.
that it has been granted to the debtor, the Courts shall determine agreed by the parties. If the Japanese told the German Otto The sentence appealed is confirmed. The appellants will pay the
the duration thereof." Schulze to pay the rent to the owner of the farm, this shows that costs in all instances.
As we have already said, the reoccupation of the farm in February they had not wanted to harm him; the action was directed to the
was nothing more than the continuation of the lease that ended tenant, the owner of the possession, the use and enjoyment of
on August 31, 1943, in line with the second additional term of two the lease. The deprivation of possession of the tenants by the
years. Japanese soldiers was a simple disturbance of mere fact and of
Article 1128 of the Civil Code refers to obligations in general and which the landlord does not respond, according to the express
does not refer to lease terms because on this class of contract disposition of article 1560 of the Civil Code. Under no conceptio
there is already a special provision and is that of article 1565 that should be deducted, therefore, the period of illegal occupation of
reads as follows: "If the lease has been made by determined time, Otto Schulze, the term of lease agreed by the parties. The
concludes the preset day without requirement. " deprivation of possession of the tenants by the Japanese soldiers
In the present case, there is a term prefixed by the parties - three was a simple disturbance of mere fact and of which the landlord
years from September 1, 1940 to August 31, 1943, and an does not respond, according to the express disposition of article
additional term of two years ending August 31, 1945. If there 1560 of the Civil Code. Under no conceptio should be deducted,
were no If there was another additional term of two years, the therefore, the period of illegal occupation of Otto Schulze, the
reoccupation by the tenants in February 1945 would have been a term of lease agreed by the parties. The deprivation of possession
new lease, due to the redistricting; but as the rent payment was of the tenants by the Japanese soldiers was a simple disturbance
made per month, it must be understood that the contract ended of mere fact and of which the landlord does not respond,
at the end of the month. Article 1581 of the Civil Code expressly according to the express disposition of article 1560 of the Civil
provides that "If no term was fixed for the lease, it is understood Code. Under no conceptio should be deducted, therefore, the
to be done for years when an annual rent has been fixed, for period of illegal occupation of Otto Schulze, the term of lease
months when it is monthly, for days when it is monthly, for days agreed by the parties.
when it is daily. In any case, the lease ceases, without the need for The appellants argue that the invasion of the Japanese can not be
a special requirement, considered as a mere de facto disturbance, because it affects not
Regarding the launching of the tenants of the farm by the only the leased farm but also other properties in the
invading army, putting in its place the German otto Schulze, few Philippines. That's true; but it is not a legal reason for the tenants
words are enough. The Hague Convention of 1907 does not not to suffer their corresponding share in the depredations
authorize an occupying army to seize private property in the caused by the Japanese hordes; It is not a reason for tenants to
invaded territory. On the contrary, provides that: "Family honor shift the burden of damage caused to them to the landlord's
and rights, the lives of persons, and private property, as well as shoulder. lawphil.net
religious convictions and practice, must be respected. Private In support of the theory that the Court may extend the term of
propertyin the landlord? Nor is there anything in the record that the occupation of the property by the tenants for a period of time
demonstrates that the soldiers occupied the property with equivalent to the time they were deprived of possession by the
pretentions of ownership. If the Japanese told the German Otto Japanese army, the appellants invoke Law No. 720 of the
Schulze to pay the rent to the owner of the farm, this shows that Commonwealth that provides for the extension of the term within
they had not wanted to harm him; the action was directed to the which any term, condition or stipulation expressed in mineral,
tenant, the owner of the possession, the use and enjoyment of forestry and public land concessions may be made, carried out or
the lease. The deprivation of possession of the tenants by the fulfilled. Without this law, any extension of the term would be
Japanese soldiers was a simple disturbance of mere fact and of illegal: the terms of the grant are inflexible and must be complied
which the landlord does not respond, according to the express with. In the present case, the law between the parties is the lease
disposition of article 1560 of the Civil Code. Under no conceptio contract Exhibito C. If the landlord does not agree to grant a third SECOND DIVISION
should be deducted, therefore, the period of illegal occupation of term, by tacit redress or expressly, the eviction of the appellants is [G.R. No. 139325. April 12, 2005]
Otto Schulze, the term of lease agreed by the parties. If the forced. PRISCILLA C. MIJARES, LORETTA ANN P. ROSALES, HILDA B.
Japanese told the German Otto Schulze to pay the rent to the NARCISO, SR. MARIANI DIMARANAN, SFIC, and JOEL C.
 30

LAMANGAN in their behalf and on behalf of the Class Plaintiffs in action was brought forth by ten Filipino citizens[2] who each estimation; hence, a filing fee of only Four Hundred Ten Pesos
Class Action No. MDL 840, United States District Court of alleged having suffered human rights abuses such as arbitrary (P410.00) was proper, pursuant to Section 7(c) of Rule 141.[9]
Hawaii, petitioners, vs. HON. SANTIAGO JAVIER RANADA, in his detention, torture and rape in the hands of police or military On 9 September 1998, respondent Judge Santiago Javier
capacity as Presiding Judge of Branch 137, Regional Trial Court, forces during the Marcos regime.[3] The Alien Tort Act was invoked Ranada[10] of the Makati RTC issued the subject Order dismissing
Makati City, and the ESTATE OF FERDINAND E. MARCOS, through as basis for the US District Courts jurisdiction over the complaint, the complaint without prejudice. Respondent judge opined that
its court appointed legal representatives in Class Action MDL as it involved a suit by aliens for tortious violations of contrary to the petitioners submission, the subject matter of the
840, United States District Court of Hawaii, namely: Imelda R. international law.[4] These plaintiffs brought the action on their complaint was indeed capable of pecuniary estimation, as it
Marcos and Ferdinand Marcos, Jr., respondents. own behalf and on behalf of a class of similarly situated involved a judgment rendered by a foreign court ordering the
DECISION individuals, particularly consisting of all current civilian citizens of payment of definite sums of money, allowing for easy
TINGA, J.: the Philippines, their heirs and beneficiaries, who between 1972 determination of the value of the foreign judgment. On that
Our martial law experience bore strange unwanted fruits, and we and 1987 were tortured, summarily executed or had disappeared score, Section 7(a) of Rule 141 of the Rules of Civil Procedure
have yet to finish weeding out its bitter crop. While the while in the custody of military or paramilitary groups. Plaintiffs would find application, and the RTC estimated the proper amount
restoration of freedom and the fundamental structures and alleged that the class consisted of approximately ten thousand of filing fees was approximately Four Hundred Seventy Two
processes of democracy have been much lauded, according to a (10,000) members; hence, joinder of all these persons was Million Pesos, which obviously had not been paid.
significant number, the changes, however, have not sufficiently impracticable. Not surprisingly, petitioners filed a Motion for Reconsideration,
healed the colossal damage wrought under the oppressive The institution of a class action suit was warranted under Rule which Judge Ranada denied in an Order dated 28 July 1999. From
conditions of the martial law period. The cries of justice for the 23(a) and (b)(1)(B) of the US Federal Rules of Civil Procedure, the this denial, petitioners filed a Petition for Certiorariunder Rule 65
tortured, the murdered, and the desaparecidos arouse outrage provisions of which were invoked by the plaintiffs. Subsequently, assailing the twin orders of respondent judge.[11] They prayed for
and sympathy in the hearts of the fair-minded, yet the the US District Court certified the case as a class action and the annulment of the questioned orders, and an order directing
dispensation of the appropriate relief due them cannot be created three (3) sub-classes of torture, summary execution and the reinstatement of Civil Case No. 97-1052 and the conduct of
extended through the same caprice or whim that characterized disappearance victims.[5] Trial ensued, and subsequently a jury appropriate proceedings thereon.
the ill-wind of martial rule. The damage done was not merely rendered a verdict and an award of compensatory and exemplary Petitioners submit that their action is incapable of pecuniary
personal but institutional, and the proper rebuke to the iniquitous damages in favor of the plaintiff class. Then, on 3 February 1995, estimation as the subject matter of the suit is the enforcement of
past has to involve the award of reparations due within the the US District Court, presided by Judge Manuel L. Real, rendered a foreign judgment, and not an action for the collection of a sum
confines of the restored rule of law. a Final Judgment (Final Judgment) awarding the plaintiff class a of money or recovery of damages. They also point out that to
The petitioners in this case are prominent victims of human rights total of One Billion Nine Hundred Sixty Four Million Five Thousand require the class plaintiffs to pay Four Hundred Seventy Two
violations[1] who, deprived of the opportunity to directly confront Eight Hundred Fifty Nine Dollars and Ninety Cents Million Pesos (P472,000,000.00) in filing fees would negate and
the man who once held absolute rule over this country, have ($1,964,005,859.90). The Final Judgment was eventually affirmed render inutile the liberal construction ordained by the Rules of
chosen to do battle instead with the earthly representative, his by the US Court of Appeals for the Ninth Circuit, in a decision Court, as required by Section 6, Rule 1 of the Rules of Civil
estate. The clash has been for now interrupted by a trial court rendered on 17 December 1996.[6] Procedure, particularly the inexpensive disposition of every
ruling, seemingly comported to legal logic, that required the On 20 May 1997, the present petitioners filed Complaint with the action.
petitioners to pay a whopping filing fee of over Four Hundred Regional Trial Court, City of Makati (Makati RTC) for the Petitioners invoke Section 11, Article III of the Bill of Rights of the
Seventy-Two Million Pesos (P472,000,000.00) in order that they enforcement of the Final Judgment. They alleged that they are Constitution, which provides that Free access to the courts and
be able to enforce a judgment awarded them by a foreign court. members of the plaintiff class in whose favor the US District Court quasi-judicial bodies and adequate legal assistance shall not be
There is an understandable temptation to cast the struggle within awarded damages.[7] They argued that since the Marcos Estate denied to any person by reason of poverty, a mandate which is
the simplistic confines of a morality tale, and to employ short-cuts failed to file a petition for certiorari with the US Supreme Court essentially defeated by the required exorbitant filing fee. The
to arrive at what might seem the desirable solution. But easy, after the Ninth Circuit Court of Appeals had affirmed the Final adjudicated amount of the filing fee, as arrived at by the RTC, was
reflexive resort to the equity principle all too often leads to a Judgment, the decision of the US District Court had become final characterized as indisputably unfair, inequitable, and unjust.
result that may be morally correct, but legally wrong. and executory, and hence should be recognized and enforced in The Commission on Human Rights (CHR) was permitted to
Nonetheless, the application of the legal principles involved in this the Philippines, pursuant to Section 50, Rule 39 of the Rules of intervene in this case.[12] It urged that the petition be granted and
case will comfort those who maintain that our substantive and Court then in force.[8] a judgment rendered, ordering the enforcement and execution of
procedural laws, for all their perceived ambiguity and On 5 February 1998, the Marcos Estate filed a motion to dismiss, the District Court judgment in accordance with Section 48, Rule 39
susceptibility to myriad interpretations, are inherently fair and raising, among others, the non-payment of the correct filing fees. of the 1997 Rules of Civil Procedure. For the CHR, the Makati RTC
just. The relief sought by the petitioners is expressly mandated by It alleged that petitioners had only paid Four Hundred Ten Pesos erred in interpreting the action for the execution of a foreign
our laws and conforms to established legal principles. The (P410.00) as docket and filing fees, notwithstanding the fact that judgment as a new case, in violation of the principle that once a
granting of this petition for certiorari is warranted in order to they sought to enforce a monetary amount of damages in the case has been decided between the same parties in one country
correct the legally infirm and unabashedly unjust ruling of the amount of over Two and a Quarter Billion US Dollars (US$2.25 on the same issue with finality, it can no longer be relitigated
respondent judge. Billion). The Marcos Estate cited Supreme Court Circular No. 7, again in another country.[13] The CHR likewise invokes the
The essential facts bear little elaboration. On 9 May 1991, a pertaining to the proper computation and payment of docket principle of comity, and of vested rights.
complaint was filed with the United States District Court (US fees. In response, the petitioners claimed that an action for the The Courts disposition on the issue of filing fees will prove a useful
District Court), District of Hawaii, against the Estate of former enforcement of a foreign judgment is not capable of pecuniary jurisprudential guidepost for courts confronted with actions
Philippine President Ferdinand E. Marcos (Marcos Estate). The enforcing foreign judgments, particularly those lodged against an
 31

estate. There is no basis for the issuance a limited pro hac claim.[14] In special proceedings involving properties such as for Civil Procedure has remained unchanged down to the last word in
vice ruling based on the special circumstances of the petitioners the allowance of wills, the filing fee is again based on the value of nearly a century. Section 48 states:
as victims of martial law, or on the emotionally-charged allegation the property.[15] The aforecited rules evidently have no application SEC. 48. Effect of foreign judgments. The effect of a judgment of a
of human rights abuses. to petitioners complaint. tribunal of a foreign country, having jurisdiction to pronounce the
An examination of Rule 141 of the Rules of Court readily evinces Petitioners rely on Section 7(b), particularly the proviso on actions judgment is as follows:
that the respondent judge ignored the clear letter of the law where the value of the subject matter cannot be estimated. The (a) In case of a judgment upon a specific thing, the judgment is
when he concluded that the filing fee be computed based on the provision reads in full: conclusive upon the title to the thing;
total sum claimed or the stated value of the property in litigation. SEC. 7. Clerk of Regional Trial Court.- (b) In case of a judgment against a person, the judgment is
In dismissing the complaint, the respondent judge relied on (b) For filing presumptive evidence of a right as between the parties and their
Section 7(a), Rule 141 as basis for the computation of the filing 1. Actions where the value successors in interest by a subsequent title;
fee of over P472 Million. The provision states: of the subject matter In either case, the judgment or final order may be repelled by
SEC. 7. Clerk of Regional Trial Court.- cannot be estimated --- P 600.00 evidence of a want of jurisdiction, want of notice to the party,
(a) For filing an action or a permissive counterclaim or money 2. Special civil actions except collusion, fraud, or clear mistake of law or fact.
claim against an estate not based on judgment, or for filing with judicial foreclosure which There is an evident distinction between a foreign judgment in an
leave of court a third-party, fourth-party, etc., complaint, or a shall be governed by action in rem and one in personam. For an action in rem, the
complaint in intervention, and for all clerical services in the same paragraph (a) above --- P 600.00 foreign judgment is deemed conclusive upon the title to the thing,
time, if the total sum claimed, exclusive of interest, or the started 3. All other actions not while in an action in personam, the foreign judgment is
value of the property in litigation, is: involving property --- P 600.00 presumptive, and not conclusive, of a right as between the parties
1. Less than P 100,00.00 P 500.00 In a real action, the assessed value of the property, or if there is and their successors in interest by a subsequent title.[21]However,
2. P 100,000.00 or more - P 800.00 none, the estimated value, thereof shall be alleged by the in both cases, the foreign judgment is susceptible to
but less than P 150,000.00 claimant and shall be the basis in computing the fees. impeachment in our local courts on the grounds of want of
3. P 150,000.00 or more but - P 1,000.00 It is worth noting that the provision also provides that in real jurisdiction or notice to the party,[22] collusion, fraud,[23] or clear
less than P 200,000.00 actions, the assessed value or estimated value of the property mistake of law or fact.[24] Thus, the party aggrieved by the foreign
4. P 200,000.00 or more but shall be alleged by the claimant and shall be the basis in judgment is entitled to defend against the enforcement of such
less than P 250,000.00 - P 1,500.00 computing the fees. Yet again, this provision does not apply in the decision in the local forum. It is essential that there should be an
5. P 250,000.00 or more but case at bar. A real action is one where the plaintiff seeks the opportunity to challenge the foreign judgment, in order for the
less than P 300,00.00 - P 1,750.00 recovery of real property or an action affecting title to or recovery court in this jurisdiction to properly determine its efficacy.[25]
6. P 300,000.00 or more but of possession of real property.[16] Neither the complaint nor the It is clear then that it is usually necessary for an action to be filed
not more than P 400,000.00 - P 2,000.00 award of damages adjudicated by the US District Court involves in order to enforce a foreign judgment[26], even if such judgment
7. P 350,000.00 or more but not any real property of the Marcos Estate. has conclusive effect as in the case of in rem actions, if only for
more than P400,000.00 - P 2,250.00 Thus, respondent judge was in clear and serious error when he the purpose of allowing the losing party an opportunity to
8. For each P 1,000.00 in excess of concluded that the filing fees should be computed on the basis of challenge the foreign judgment, and in order for the court to
P 400,000.00 - P 10.00 the schematic table of Section 7(a), as the action involved pertains properly determine its efficacy.[27] Consequently, the party
... to a claim against an estate based on judgment. What provision, if attacking a foreign judgment has the burden of overcoming the
(Emphasis supplied) any, then should apply in determining the filing fees for an action presumption of its validity.[28]
Obviously, the above-quoted provision covers, on one hand, to enforce a foreign judgment? The rules are silent as to what initiatory procedure must be
ordinary actions, permissive counterclaims, third-party, etc. To resolve this question, a proper understanding is required on undertaken in order to enforce a foreign judgment in the
complaints and complaints-in-interventions, and on the other, the nature and effects of a foreign judgment in this jurisdiction. Philippines. But there is no question that the filing of a civil
money claims against estates which are not based on judgment. The rules of comity, utility and convenience of nations have complaint is an appropriate measure for such purpose. A civil
Thus, the relevant question for purposes of the present petition is established a usage among civilized states by which final action is one by which a party sues another for the enforcement
whether the action filed with the lower court is a money claim judgments of foreign courts of competent jurisdiction are or protection of a right,[29] and clearly an action to enforce a
against an estate not based on judgment. reciprocally respected and rendered efficacious under certain foreign judgment is in essence a vindication of a right prescinding
Petitioners complaint may have been lodged against an estate, conditions that may vary in different countries.[17] This principle either from a conclusive judgment upon title or the presumptive
but it is clearly based on a judgment, the Final Judgment of the US was prominently affirmed in the leading American case of Hilton evidence of a right.[30] Absent perhaps a statutory grant of
District Court. The provision does not make any distinction v. Guyot[18] and expressly recognized in our jurisprudence jurisdiction to a quasi-judicial body, the claim for enforcement of
between a local judgment and a foreign judgment, and where the beginning with Ingenholl v. Walter E. Olsen & Co.[19] The judgment must be brought before the regular courts.[31]
law does not distinguish, we shall not distinguish. conditions required by the Philippines for recognition and There are distinctions, nuanced but discernible, between the
A reading of Section 7 in its entirety reveals several instances enforcement of a foreign judgment were originally contained in cause of action arising from the enforcement of a foreign
wherein the filing fee is computed on the basis of the amount of Section 311 of the Code of Civil Procedure, which was taken from judgment, and that arising from the facts or allegations that
the relief sought, or on the value of the property in litigation. The the California Code of Civil Procedure which, in turn, was derived occasioned the foreign judgment. They may pertain to the same
filing fee for requests for extrajudicial foreclosure of mortgage is from the California Act of March 11, 1872.[20] Remarkably, the set of facts, but there is an essential difference in the right-duty
based on the amount of indebtedness or the mortgagees procedural rule now outlined in Section 48, Rule 39 of the Rules of correlatives that are sought to be vindicated. For example, in a
 32

complaint for damages against a tortfeasor, the cause of action the subject matter of his suit is not the P1 million, but the But before we insist upon this conclusion past beyond the point of
emanates from the violation of the right of the complainant enforcement of the promissory note, and that the value of such reckoning, we must examine its possible ramifications. Petitioners
through the act or omission of the respondent. On the other enforcement cannot be estimated.[35] raise the point that a declaration that an action for enforcement
hand, in a complaint for the enforcement of a foreign judgment The jurisprudential standard in gauging whether the subject of foreign judgment may be capable of pecuniary estimation
awarding damages from the same tortfeasor, for the violation of matter of an action is capable of pecuniary estimation is well- might lead to an instance wherein a first level court such as the
the same right through the same manner of action, the cause of entrenched. The Marcos Estate cites Singsong v. Isabela Sawmill Municipal Trial Court would have jurisdiction to enforce a foreign
action derives not from the tortious act but from the foreign and Raymundo v. Court of Appeals, which ruled: judgment. But under the statute defining the jurisdiction of first
judgment itself. [I]n determining whether an action is one the subject matter of level courts, B.P. 129, such courts are not vested with jurisdiction
More importantly, the matters for proof are different. Using the which is not capable of pecuniary estimation this Court has over actions for the enforcement of foreign judgments.
above example, the complainant will have to establish before the adopted the criterion of first ascertaining the nature of the Sec. 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial
court the tortious act or omission committed by the tortfeasor, principal action or remedy sought. If it is primarily for the Courts and Municipal Circuit Trial Courts in civil
who in turn is allowed to rebut these factual allegations or prove recovery of a sum of money, the claim is considered capable of cases. Metropolitan Trial Courts, Municipal Trial Courts, and
extenuating circumstances. Extensive litigation is thus conducted pecuniary estimation, and whether jurisdiction is in the municipal Municipal Circuit Trial Courts shall exercise:
on the facts, and from there the right to and amount of damages courts or in the courts of first instance would depend on the (1) Exclusive original jurisdiction over civil actions and probate
are assessed. On the other hand, in an action to enforce a foreign amount of the claim. However, where the basic issue is something proceedings, testate and intestate, including the grant of
judgment, the matter left for proof is the foreign judgment itself, other than the right to recover a sum of money, where the money provisional remedies in proper cases, where the value of the
and not the facts from which it prescinds. claim is purely incidental to, or a consequence of, the principal personal property, estate, or amount of the demand does not
As stated in Section 48, Rule 39, the actionable issues are relief sought, this Court has considered such actions as cases exceed One hundred thousand pesos (P100,000.00) or, in Metro
generally restricted to a review of jurisdiction of the foreign court, where the subject of the litigation may not be estimated in terms Manila where such personal property, estate, or amount of the
the service of personal notice, collusion, fraud, or mistake of fact of money, and are cognizable exclusively by courts of first demand does not exceed Two hundred thousand pesos
or law. The limitations on review is in consonance with a strong instance (now Regional Trial Courts). (P200,000.00) exclusive of interest damages of whatever kind,
and pervasive policy in all legal systems to limit repetitive On the other hand, petitioners cite the ponencia of Justice JBL attorney's fees, litigation expenses, and costs, the amount of
litigation on claims and issues.[32] Otherwise known as the policy Reyes in Lapitan v. Scandia,[36] from which the rule which must be specifically alleged: Provided, That where there are
of preclusion, it seeks to protect party expectations resulting from in Singsong and Raymundo actually derives, but which several claims or causes of action between the same or different
previous litigation, to safeguard against the harassment of incorporates this additional nuance omitted in the latter cases: parties, embodied in the same complaint, the amount of the
defendants, to insure that the task of courts not be increased by xxx However, where the basic issue is something other than the demand shall be the totality of the claims in all the causes of
never-ending litigation of the same disputes, and in a larger sense right to recover a sum of money, where the money claim is purely action, irrespective of whether the causes of action arose out of
to promote what Lord Coke in the Ferrers Case of 1599 stated to incidental to, or a consequence of, the principal relief sought, like the same or different transactions;
be the goal of all law: rest and quietness.[33] If every judgment of a in suits to have the defendant perform his part of the contract (2) Exclusive original jurisdiction over cases of forcible entry and
foreign court were reviewable on the merits, the plaintiff would (specific performance) and in actions for support, or for unlawful detainer: Provided, That when, in such cases, the
be forced back on his/her original cause of action, rendering annulment of judgment or to foreclose a mortgage, this Court defendant raises the question of ownership in his pleadings and
immaterial the previously concluded litigation.[34] has considered such actions as cases where the subject of the the question of possession cannot be resolved without deciding
Petitioners appreciate this distinction, and rely upon it to support litigation may not be estimated in terms of money, and are the issue of ownership, the issue of ownership shall be resolved
the proposition that the subject matter of the complaintthe cognizable exclusively by courts of first instance.[37] only to determine the issue of possession.
enforcement of a foreign judgmentis incapable of pecuniary Petitioners go on to add that among the actions the Court has (3) Exclusive original jurisdiction in all civil actions which involve
estimation. Admittedly the proposition, as it applies in this case, is recognized as being incapable of pecuniary estimation include title to, or possession of, real property, or any interest therein
counter-intuitive, and thus deserves strict scrutiny. For in all legality of conveyances and money deposits,[38] validity of a where the assessed value of the property or interest therein does
practical intents and purposes, the matter at hand is capable of mortgage,[39] the right to support,[40] validity of not exceed Twenty thousand pesos (P20,000.00) or, in civil
pecuniary estimation, down to the last cent. In the documents,[41] rescission of contracts,[42] specific actions in Metro Manila, where such assessed value does not
assailed Order, the respondent judge pounced upon this point performance,[43] and validity or annulment of judgments.[44] It is exceed Fifty thousand pesos (P50,000.00) exclusive of interest,
without equivocation: urged that an action for enforcement of a foreign judgment damages of whatever kind, attorney's fees, litigation expenses
The Rules use the term where the value of the subject matter belongs to the same class. and costs: Provided, That value of such property shall be
cannot be estimated. The subject matter of the present case is the This is an intriguing argument, but ultimately it is self-evident that determined by the assessed value of the adjacent lots.[45]
judgment rendered by the foreign court ordering defendant to while the subject matter of the action is undoubtedly the Section 33 of B.P. 129 refers to instances wherein the cause of
pay plaintiffs definite sums of money, as and for compensatory enforcement of a foreign judgment, the effect of a providential action or subject matter pertains to an assertion of rights and
damages. The Court finds that the value of the foreign judgment award would be the adjudication of a sum of money. Perhaps in interests over property or a sum of money. But as earlier pointed
can be estimated; indeed, it can even be easily determined. The theory, such an action is primarily for the enforcement of the out, the subject matter of an action to enforce a foreign judgment
Court is not minded to distinguish between the enforcement of a foreign judgment, but there is a certain obtuseness to that sort of is the foreign judgment itself, and the cause of action arising from
judgment and the amount of said judgment, and separate the argument since there is no denying that the enforcement of the the adjudication of such judgment.
two, for purposes of determining the correct filing fees. Similarly, foreign judgment will necessarily result in the award of a definite An examination of Section 19(6), B.P. 129 reveals that the instant
a plaintiff suing on promissory note for P1 million cannot be sum of money. complaint for enforcement of a foreign judgment, even if capable
allowed to pay only P400 filing fees (sic), on the reasoning that of pecuniary estimation, would fall under the jurisdiction of the
 33

Regional Trial Courts, thus negating the fears of the petitioners. 1966 by the Hague Conference of International Law.[54] While it The viability of the public policy defense against the enforcement
Indeed, an examination of the provision indicates that it can be has not received the ratifications needed to have it take of a foreign judgment has been recognized in this
relied upon as jurisdictional basis with respect to actions for effect,[55] it is recognized as representing current scholarly thought jurisdiction.[63] This defense allows for the application of local
enforcement of foreign judgments, provided that no other court on the topic.[56] Neither the Philippines nor the United States are standards in reviewing the foreign judgment, especially when
or office is vested jurisdiction over such complaint: signatories to the Convention. such judgment creates only a presumptive right, as it does in
Sec. 19. Jurisdiction in civil cases. Regional Trial Courts shall Yet even if there is no unanimity as to the applicable theory cases wherein the judgment is against a person.[64] The defense is
exercise exclusive original jurisdiction: behind the recognition and enforcement of foreign judgments or also recognized within the international sphere, as many civil law
xxx a universal treaty rendering it obligatory force, there is consensus nations adhere to a broad public policy exception which may
(6) In all cases not within the exclusive jurisdiction of any court, that the viability of such recognition and enforcement is essential. result in a denial of recognition when the foreign court, in the
tribunal, person or body exercising jurisdiction or any court, Steiner and Vagts note: light of the choice-of-law rules of the recognizing court, applied
tribunal, person or body exercising judicial or quasi-judicial . . . The notion of unconnected bodies of national law on private the wrong law to the case.[65] The public policy defense can
functions. international law, each following a quite separate path, is not one safeguard against possible abuses to the easy resort to offshore
Thus, we are comfortable in asserting the obvious, that the conducive to the growth of a transnational community litigation if it can be demonstrated that the original claim is
complaint to enforce the US District Court judgment is one encouraging travel and commerce among its members. There is a noxious to our constitutional values.
capable of pecuniary estimation. But at the same time, it is also an contemporary resurgence of writing stressing the identity or There is no obligatory rule derived from treaties or conventions
action based on judgment against an estate, thus placing it similarity of the values that systems of public and private that requires the Philippines to recognize foreign judgments, or
beyond the ambit of Section 7(a) of Rule 141. What provision then international law seek to further a community interest in allow a procedure for the enforcement thereof. However,
governs the proper computation of the filing fees over the instant common, or at least reasonable, rules on these matters in generally accepted principles of international law, by virtue of the
complaint? For this case and other similarly situated instances, we national legal systems. And such generic principles as reciprocity incorporation clause of the Constitution, form part of the laws of
find that it is covered by Section 7(b)(3), involving as it does, other play an important role in both fields.[57] the land even if they do not derive from treaty obligations.[66] The
actions not involving property. Salonga, whose treatise on private international law is of classical formulation in international law sees those customary
Notably, the amount paid as docket fees by the petitioners on the worldwide renown, points out: rules accepted as binding result from the combination two
premise that it was an action incapable of pecuniary estimation Whatever be the theory as to the basis for recognizing foreign elements: the established, widespread, and consistent practice on
corresponds to the same amount required for other actions not judgments, there can be little dispute that the end is to protect the part of States; and a psychological element known as
involving property. The petitioners thus paid the correct amount the reasonable expectations and demands of the parties. Where the opinion juris sive necessitates (opinion as to law or necessity).
of filing fees, and it was a grave abuse of discretion for the parties have submitted a matter for adjudication in the court Implicit in the latter element is a belief that the practice in
respondent judge to have applied instead a clearly inapplicable of one state, and proceedings there are not tainted with question is rendered obligatory by the existence of a rule of law
rule and dismissed the complaint. irregularity, they may fairly be expected to submit, within the requiring it.[67]
There is another consideration of supreme relevance in this case, state or elsewhere, to the enforcement of the judgment issued by While the definite conceptual parameters of the recognition and
one which should disabuse the notion that the doctrine affirmed the court.[58] enforcement of foreign judgments have not been authoritatively
in this decision is grounded solely on the letter of the procedural There is also consensus as to the requisites for recognition of a established, the Court can assert with certainty that such an
rule. We earlier adverted to the the internationally recognized foreign judgment and the defenses against the enforcement undertaking is among those generally accepted principles of
policy of preclusion,[46] as well as the principles of comity, utility thereof. As earlier discussed, the exceptions enumerated in international law.[68] As earlier demonstrated, there is a
and convenience of nations[47] as the basis for the evolution of the Section 48, Rule 39 have remain unchanged since the time they widespread practice among states accepting in principle the need
rule calling for the recognition and enforcement of foreign were adapted in this jurisdiction from long standing American for such recognition and enforcement, albeit subject to limitations
judgments. The US Supreme Court in Hilton v. Guyot[48] relied rules. The requisites and exceptions as delineated under Section of varying degrees. The fact that there is no binding universal
heavily on the concept of comity, as especially derived from the 48 are but a restatement of generally accepted principles of treaty governing the practice is not indicative of a widespread
landmark treatise of Justice Story in his Commentaries on the international law. Section 98 of The Restatement, Second, Conflict rejection of the principle, but only a disagreement as to the
Conflict of Laws of 1834.[49] Yet the notion of comity has since of Laws, states that a valid judgment rendered in a foreign nation imposable specific rules governing the procedure for recognition
been criticized as one of dim contours[50] or suffering from a after a fair trial in a contested proceeding will be recognized in the and enforcement.
number of fallacies.[51] Other conceptual bases for the recognition United States, and on its face, the term valid brings into play Aside from the widespread practice, it is indubitable that the
of foreign judgments have evolved such as the vested rights requirements such notions as valid jurisdiction over the subject procedure for recognition and enforcement is embodied in the
theory or the modern doctrine of obligation.[52] matter and parties.[59] Similarly, the notion that fraud or collusion rules of law, whether statutory or jurisprudential, adopted in
There have been attempts to codify through treaties or may preclude the enforcement of a foreign judgment finds various foreign jurisdictions. In the Philippines, this is evidenced
multilateral agreements the standards for the recognition and affirmation with foreign jurisprudence and commentators,[60] as primarily by Section 48, Rule 39 of the Rules of Court which has
enforcement of foreign judgments, but these have not borne well as the doctrine that the foreign judgment must not constitute existed in its current form since the early 1900s. Certainly, the
fruition. The members of the European Common Market accede a clear mistake of law or fact.[61] And finally, it has been Philippine legal system has long ago accepted into its
to the Judgments Convention, signed in 1978, which eliminates as recognized that public policy as a defense to the recognition of jurisprudence and procedural rules the viability of an action for
to participating countries all of such obstacles to recognition such judgments serves as an umbrella for a variety of concerns in enforcement of foreign judgment, as well as the requisites for
as reciprocity and rvision au fond.[53] The most ambitious of these international practice which may lead to a denial of such valid enforcement, as derived from internationally accepted
attempts is the Convention on the Recognition and Enforcement of recognition.[62] doctrines. Again, there may be distinctions as to the rules adopted
Foreign Judgments in Civil and Commercial Matters, prepared in by each particular state,[69] but they all prescind from the premise
 34

that there is a rule of law obliging states to allow for, however Finally, petitioners also invoke Section 11, Article III of the nationality of the territory. With respect to these the special
generally, the recognition and enforcement of a foreign judgment. Constitution, which states that [F]ree access to the courts and agreement contained in article 9 was established, by virtue of
The bare principle, to our mind, has attained the status of opinio quasi-judicial bodies and adequate legal assistance shall not be which it was agreed to accord them the right of electing to leave
juris in international practice. denied to any person by reason of poverty. Since the provision is the country, thus freeing themselves of subjection to the new
This is a significant proposition, as it acknowledges that the among the guarantees ensured by the Bill of Rights, it certainly sovereign, or to continue to reside in the territory, in which case
procedure and requisites outlined in Section 48, Rule 39 derive gives rise to a demandable right. However, now is not the the expiration of the term of eighteen months without their
their efficacy not merely from the procedural rule, but by virtue of occasion to elaborate on the parameters of this constitutional making an express declaration of intention to retain their Spanish
the incorporation clause of the Constitution. Rules of procedure right. Given our preceding discussion, it is not necessary to utilize nationality resulted in the loss of the latter, such persons thereby
are promulgated by the Supreme Court,[70] and could very well be this provision in order to grant the relief sought by the becoming subjects of the new sovereign in the same manner as
abrogated or revised by the high court itself. Yet the Supreme petitioners. It is axiomatic that the constitutionality of an act will the natives of these Islands. The period of eighteen months began
Court is obliged, as are all State components, to obey the laws of not be resolved by the courts if the controversy can be settled on to run from the date of the exchange of the ratifications of the
the land, including generally accepted principles of international other grounds[73] or unless the resolution thereof is indispensable treaty — that is to say, from April 11, 1899, and expired on the
law which form part thereof, such as those ensuring the qualified for the determination of the case.[74] corresponding day of October, 1900. The petitioner absented
recognition and enforcement of foreign judgments.[71] One more word. It bears noting that Section 48, Rule 39 himself from these Islands on May 30, 1899, and remained absent
Thus, relative to the enforcement of foreign judgments in the acknowledges that the Final Judgment is not conclusive yet, but therefrom during the whole period. It was in January, 1901, that
Philippines, it emerges that there is a general right recognized presumptive evidence of a right of the petitioners against the he returned to these Islands.
within our body of laws, and affirmed by the Constitution, to seek Marcos Estate. Moreover, the Marcos Estate is not precluded to From this conduct on the part of the petitioner it is evident that
recognition and enforcement of foreign judgments, as well as a present evidence, if any, of want of jurisdiction, want of notice to he elected to take the first of the two courses open to him under
right to defend against such enforcement on the grounds of want the party, collusion, fraud, or clear mistake of law or fact. This his right of option. Neither the Government nor the courts can
of jurisdiction, want of notice to the party, collusion, fraud, or ruling, decisive as it is on the question of filing fees and no other, place any other construction upon the facts above related. Having
clear mistake of law or fact. does not render verdict on the enforceability of the Final left the islands he had no occasion to make any declaration of his
The preclusion of an action for enforcement of a foreign judgment Judgment before the courts under the jurisdiction of the intention to preserve his Spanish nationality, which he carried
in this country merely due to an exhorbitant assessment of docket Philippines, or for that matter any other issue which may with him on his departure. This nationality could be forfeited only
fees is alien to generally accepted practices and principles in legitimately be presented before the trial court. Such issues are to by a continued residence in the ceded territory and a failure to
international law. Indeed, there are grave concerns in be litigated before the trial court, but within the confines of the make a declaration of intention to preserve it within the term
conditioning the amount of the filing fee on the pecuniary award matters for proof as laid down in Section 48, Rule 39. On the fixed therefor. The conditions which gave rise to the presumptive
or the value of the property subject of the foreign decision. Such other hand, the speedy resolution of this claim by the trial court is change of nationality were residence and the lapse of eighteen
pecuniary award will almost certainly be in foreign denomination, encouraged, and contumacious delay of the decision on the months without express declaration to the contrary; these two
computed in accordance with the applicable laws and standards merits will not be brooked by this Court. conditions not being fulfilled there was no change of national
of the forum.[72] The vagaries of inflation, as well as the relative WHEREFORE, the petition is GRANTED. The assailed orders are status. Neither by the Government of Spain nor by that of the
low-income capacity of the Filipino, to date may very well NULLIFIED and SET ASIDE, and a new order REINSTATING Civil United States could the petitioner be regarded as a Filipino
translate into an award virtually unenforceable in this country, Case No. 97-1052 is hereby issued. No costs. subject. By absenting himself from the territory he continued to
despite its integral validity, if the docket fees for the enforcement SO ORDERED. be a Spaniard.
thereof were predicated on the amount of the award sought to be To native-born subjects of the territory no such right of option
enforced. The theory adopted by respondent judge and the was accorded; it was expressly refused them upon the rejection
Marcos Estate may even lead to absurdities, such as if applied to by the American Commissioners of the proposition in favor of the
an award involving real property situated in places such as the Republic of the Philippines inhabitants of the ceded territories made by the Spanish
United States or Scandinavia where real property values are SUPREME COURT Commissioners in Annex No. 1 to the twenty-second protocol.
inexorably high. We cannot very well require that the filing fee be Manila (Conference of December 10, 1898.) The native subject could not
computed based on the value of the foreign property as EN BANC evade the power of the new sovereign by withdrawing from the
determined by the standards of the country where it is located. G.R. No. 666 January 14, 1902 Islands, nor while continuing to reside therein make declaration of
As crafted, Rule 141 of the Rules of Civil Procedure avoids In the matter of the petition of J. GARCIA BOSQUE for admission his intention to preserve the Spanish nationality enjoyed under
unreasonableness, as it recognizes that the subject matter of an to the practice of law in the Philippine Islands. the former sovereign. Neither the Government of the United
action for enforcement of a foreign judgment is the foreign Oscar Sutro, attorney for petitioner. States nor that of Spain can consider them as other than Filipino
judgment itself, and not the right-duty correlatives that resulted ARELLANO, C.J.: subjects. This is expressly stated by the Spanish Government in
in the foreign judgment. In this particular circumstance, given that The cession of the Philippine Archipelago having been agreed article 1 of its royal decree of May 11, 1901.
the complaint is lodged against an estate and is based on the US upon by the parties to the treaty of Paris of December 10, 1898, The dates fixed by the treaty by which the sovereignty of one
District Courts Final Judgment, this foreign judgment may, for the compulsory subjection of the subjects of the ceding power to nation is ceded to another are of the highest importance, they
purposes of classification under the governing procedural rule, be the new sovereign followed as a logical consequence. The status being part of the contract, and are not within the control of the
deemed as subsumed under Section 7(b)(3) of Rule 141, i.e., of these subjects was not uniform, as in addition to the natives subjects as are those relating to their individual rights by reason
within the class of all other actions not involving property. Thus, there were others who were merely residents but who, equally of the fact that the political rights of the contracting nations
only the blanket filing fee of minimal amount is required. with the natives, had interests and rights inherent in the themselves are the subject of the agreement. It is for this reason
 35

that the Government of Spain in the royal decree above cited has made to it in the discussions which preceded the treaty of Paris.
always taken the dates fixed in the treaty of Paris as the starting The American Commissioners, referring to Spanish subjects,
point, and, moreover, expressly declares therein that persons who natives of Spain, simply said: "Such persons have the fullest right
are natives or residents of the ceded or relinquished territories to dispose of their property and remove from the territory or
can not, in their relations with the Government or authorities of remain therein to continue to be Spanish subjects or elect the
such territories, lay claim to Spanish nationality preserved or nationality of the new territory." (Memorandum annexed to
recovered by virtue of said decree, except with the consent of Protocol No. 22.) "They shall also have the right to carry on their
such Government, or under treaty stipulations. (Art. 5.) The industry, commerce, and profession, being subject in respect
Government and courts of these Islands should not act with less thereof to such laws as are applicable to other foreigners." (Art. 9
circumspection in the matter, and invade the sovereign rights of of the treaty of Paris.) The laws applicable to other foreigners
Spain by giving the presumptive nationality established by Article were, prior to that treaty, the Law of Foreigners for the
IX of the treaty of Paris an extent not warranted by the conditions Ultramarine Provinces of July 4, 1870, and article 27 of the Civil
upon which it depends, to wit, residence coupled with failure to Code. The first of these laws in its thirty-ninth article authorized
make an express declaration to the contrary. The ordinary all foreigners to engage in any kind of industry in the Spanish
provisions of local laws in their normal operation with regard to ultramarine provinces subject to the laws prevailing therein, and
the effect of absence upon the retention of a residence or to practice any profession for which the laws did not require a
domicile can not therefore be relied upon, nor the presumption as diploma of proficiency granted by the Spanish authorities. No one
to the intention of an absentee recognized by civil codes and can doubt that the legal profession is one of those for the practice
international treaties, although the most general and almost the of which the law required a diploma of proficiency granted by the
only proof allowed by statute as evidence of an intention to Spanish authorities. The second law cited provides that foreigners
preserve a residence or domicile in a country is the maintenance in Spain shall enjoy the rights which the civil laws accord to
of a dwelling or commercial establishment therein, upon which Spaniards, subject to the provisions of article 2 of the constitution
point, as also upon the fact that the petitioner became a member of the State. Article 2 of the constitution of 1876 establishes the
of the bar of Barcelona upon his arrival in that city, we made no same restriction or limitation as the law of foreigners. Hence if
decision, not regarding it as of any moment in view of the other foreigners could not then engage in the practice of law, and
conclusions above expressed. The fact is that one is not to be by the express prohibition of the Code of Civil Procedure in force
regarded as having submitted to the new sovereign by the mere can not do so at the present time, neither can Spanish subjects do
failure to make an express declaration, inasmuch as without a so, they being in every respect upon the same footing as other
residence de facto the declaration is of no significance, having foreigners.
been established for the express purpose of overcoming the If, then, the petitioner upon his departure from these Islands on
effect of a continued residence, an act which in itself implies May 30, 1899, did not take with him the nationality or the native
subjection to the new sovereign by giving rise to the presumption inhabitants impressed by the treaty of Paris, which had been in
of waiver of Spanish nationality and the adoption of that of the force from the 11th of April of the same year; if he departed as a
territory. Spaniard and continued to be a Spaniard, by taking the first
The petitioner can not, therefore, be considered to have lost his course left open by the right of option stipulated in the treaty of
Spanish nationality by reason of his residence in the territory after Paris, without being affected by the presumptive nationality of
the 11th of October, 1900, and his failure to make declaration of the territory arising from the fact of residence and the lapse of
his intention to preserve it within the period agreed upon by the the time fixed; if he had not elected to adopt this nationality of
high contracting parties to the treaty of Paris, and to have the territory by express declaration within the same period; if
adopted the nationality of the native subjects under the after the expiration of that period it is expressly provided that the
presumption arising from the conditions expressed. He can only right of option shall no longer be available, and that the only
acquire it through voluntary renunciation of his present course is naturalization, as to which subject upon equal footing
nationality by seeking to become naturalized in these Islands; but with other foreign residents he can not practice the legal
upon this matter this court can decide nothing, there having been profession under the law either prior or subsequent to the treaty
no legislation upon the subject up to the present. of Paris, it is evident that this court can not regard the petitioner
The status of the petitioner with respect to the new sovereignty as possessed of the qualifications alleged.
of the territory having been defined, it remains to determine the The new petition presented by him for admission to the bar of Republic of the Philippines
question raised as to whether Spanish subjects resident therein these Islands must therefore be denied, and it is so ordered. SUPREME COURT
constitute an intermediate class between other foreign residents Manila
and the native of the country in whose behalf some specially THIRD DIVISION
favorable conditions have been stipulated. Upon this point no
proposition was made, even incidentally, nor was any reference G.R. No. 110120 March 16, 1994
 36

LAGUNA LAKE DEVELOPMENT AUTHORITY, petitioner, After a public hearing conducted on December 4, 1991, the LLDA, On October 12, 1992 Judge Manuel Jn. Serapio issued an order
vs. acting on the complaint of Task Force Camarin Dumpsite, found consolidating Civil Case No. C-15598 with Civil Case No. C-15580,
COURT OF APPEALS, HON. MANUEL JN. SERAPIO, Presiding that the water collected from the leachate and the receiving an earlier case filed by the Task Force Camarin Dumpsite entitled
Judge RTC, Branch 127, Caloocan City, HON. MACARIO A. streams could considerably affect the quality, in turn, of the "Fr. John Moran, et al. vs. Hon. Macario Asistio." The LLDA,
ASISTIO, JR., City Mayor of Caloocan and/or THE CITY receiving waters since it indicates the presence of bacteria, other however, maintained during the trial that the foregoing cases,
GOVERNMENT OF CALOOCAN, respondents. than coliform, which may have contaminated the sample during being independent of each other, should have been treated
Alberto N. Hidalgo and Ma. Teresa T. Oledan for petitioner. collection or handling.7 On December 5, 1991, the LLDA issued a separately.
The City Legal Officer & Chief, Law Department for Mayor Macario Cease and Desist Order8 ordering the City Government of On October 16, 1992, Judge Manuel Jn. Serapio, after hearing the
A. Asistio, Jr. and the City Government of Caloocan. Caloocan, Metropolitan Manila Authority, their contractors, and motion to dismiss, issued in the consolidated cases an
other entities, to completely halt, stop and desist from dumping order11 denying LLDA's motion to dismiss and granting the
ROMERO, J.: any form or kind of garbage and other waste matter at the issuance of a writ of preliminary injunction enjoining the LLDA, its
The clash between the responsibility of the City Government of Camarin dumpsite. agent and all persons acting for and on its behalf, from enforcing
Caloocan to dispose off the 350 tons of garbage it collects daily The dumping operation was forthwith stopped by the City or implementing its cease and desist order which prevents
and the growing concern and sensitivity to a pollution-free Government of Caloocan. However, sometime in August 1992 the plaintiff City of Caloocan from dumping garbage at the Camarin
environment of the residents of Barangay Camarin, Tala Estate, dumping operation was resumed after a meeting held in July 1992 dumpsite during the pendency of this case and/or until further
Caloocan City where these tons of garbage are dumped everyday among the City Government of Caloocan, the representatives of orders of the court.
is the hub of this controversy elevated by the protagonists to the Task Force Camarin Dumpsite and LLDA at the Office of On November 5, 1992, the LLDA filed a petition for certiorari,
Laguna Lake Development Authority (LLDA) for adjudication. Environmental Management Bureau Director Rodrigo U. Fuentes prohibition and injunction with prayer for restraining order with
The instant case stemmed from an earlier petition filed with this failed to settle the problem. the Supreme Court, docketed as G.R. No. 107542, seeking to
Court by Laguna Lake Development Authority (LLDA for short) After an investigation by its team of legal and technical personnel nullify the aforesaid order dated October 16, 1992 issued by the
docketed as G.R. on August 14, 1992, the LLDA issued another order reiterating the Regional Trial Court, Branch 127 of Caloocan City denying its
No. 107542 against the City Government of Caloocan, et al. In the December 5, 1991, order and issued an Alias Cease and Desist motion to dismiss.
Resolution of November 10, 1992, this Court referred G.R. No. Order enjoining the City Government of Caloocan from continuing The Court, acting on the petition, issued a Resolution12 on
107542 to the Court of Appeals for appropriate disposition. its dumping operations at the Camarin area. November 10, 1992 referring the case to the Court of Appeals for
Docketed therein as CA-G.R. SP On September 25, 1992, the LLDA, with the assistance of the proper disposition and at the same time, without giving due
No. 29449, the Court of Appeals, in a decision1 promulgated on Philippine National Police, enforced its Alias Cease and Desist course to the petition, required the respondents to comment on
January 29, 1993 ruled that the LLDA has no power and authority Order by prohibiting the entry of all garbage dump trucks into the the petition and file the same with the Court of Appeals within ten
to issue a cease and desist order enjoining the dumping of Tala Estate, Camarin area being utilized as a dumpsite. (10) days from notice. In the meantime, the Court issued a
garbage in Barangay Camarin, Tala Estate, Caloocan City. The Pending resolution of its motion for reconsideration earlier filed temporary restraining order, effective immediately and
LLDA now seeks, in this petition, a review of the decision of the on September 17, 1992 with the LLDA, the City Government of continuing until further orders from it, ordering the respondents:
Court of Appeals. Caloocan filed with the Regional Trial Court of Caloocan City an (1) Judge Manuel Jn. Serapio, Presiding Judge, Regional Trial
The facts, as disclosed in the records, are undisputed. action for the declaration of nullity of the cease and desist order Court, Branch 127, Caloocan City to cease and desist from
On March 8, 1991, the Task Force Camarin Dumpsite of Our Lady with prayer for the issuance of writ of injunction, docketed as Civil exercising jurisdiction over the case for declaration of nullity of
of Lourdes Parish, Barangay Camarin, Caloocan City, filed a letter- Case No. C-15598. In its complaint, the City Government of the cease and desist order issued by the Laguna Lake
complaint2 with the Laguna Lake Development Authority seeking Caloocan sought to be declared as the sole authority empowered Development Authority (LLDA); and (2) City Mayor of Caloocan
to stop the operation of the 8.6-hectare open garbage dumpsite to promote the health and safety and enhance the right of the and/or the City Government of Caloocan to cease and desist from
in Tala Estate, Barangay Camarin, Caloocan City due to its harmful people in Caloocan City to a balanced ecology within its territorial dumping its garbage at the Tala Estate, Barangay Camarin,
effects on the health of the residents and the possibility of jurisdiction.9 Caloocan City.
pollution of the water content of the surrounding area. On September 25, 1992, the Executive Judge of the Regional Trial Respondents City Government of Caloocan and Mayor Macario A.
On November 15, 1991, the LLDA conducted an on-site Court of Caloocan City issued a temporary restraining order Asistio, Jr. filed on November 12, 1992 a motion for
investigation, monitoring and test sampling of the leachate3that enjoining the LLDA from enforcing its cease and desist order. reconsideration and/or to quash/recall the temporary restraining
seeps from said dumpsite to the nearby creek which is a tributary Subsequently, the case was raffled to the Regional Trial Court, order and an urgent motion for reconsideration alleging that ". . .
of the Marilao River. The LLDA Legal and Technical personnel Branch 126 of Caloocan which, at the time, was presided over by in view of the calamitous situation that would arise if the
found that the City Government of Caloocan was maintaining an Judge Manuel Jn. Serapio of the Regional Trial Court, Branch 127, respondent city government fails to collect 350 tons of garbage
open dumpsite at the Camarin area without first securing an the pairing judge of the recently-retired presiding judge. daily for lack of dumpsite (i)t is therefore, imperative that the
Environmental Compliance Certificate (ECC) from the The LLDA, for its part, filed on October 2, 1992 a motion to dismiss issue be resolved with dispatch or with sufficient leeway to allow
Environmental Management Bureau (EMB) of the Department of on the ground, among others, that under Republic Act No. 3931, the respondents to find alternative solutions to this garbage
Environment and Natural Resources, as required under as amended by Presidential Decree No. 984, otherwise known as problem."
Presidential Decree No. 1586,4 and clearance from LLDA as the Pollution Control Law, the cease and desist order issued by it On November 17, 1992, the Court issued a Resolution13 directing
required under Republic Act No. 4850,5 as amended by which is the subject matter of the complaint is reviewable both the Court of Appeals to immediately set the case for hearing for
Presidential Decree No. 813 and Executive Order No. 927, series upon the law and the facts of the case by the Court of Appeals the purpose of determining whether or not the temporary
of 1983.6 and not by the Regional Trial Court. 10 restraining order issued by the Court should be lifted and what
 37

conditions, if any, may be required if it is to be so lifted or On July, 19, 1993, the Court issued a temporary restraining (e) Issue, renew, or deny permits, under such conditions as it may
whether the restraining order should be maintained or converted order16 enjoining the City Mayor of Caloocan and/or the City determine to be reasonable, for the prevention and abatement of
into a preliminary injunction. Government of Caloocan to cease and desist from dumping its pollution, for the discharge of sewage, industrial waste, or for the
The Court of Appeals set the case for hearing on November 27, garbage at the Tala Estate, Barangay Camarin, Caloocan City, installation or operation of sewage works and industrial disposal
1992, at 10:00 in the morning at the Hearing Room, 3rd Floor, effective as of this date and containing until otherwise ordered by system or parts thereof.
New Building, Court of Appeals.14 After the oral argument, a the Court. (f) After due notice and hearing, the Authority may also revoke,
conference was set on December 8, 1992 at 10:00 o'clock in the It is significant to note that while both parties in this case agree on suspend or modify any permit issued under this Order whenever
morning where the Mayor of Caloocan City, the General Manager the need to protect the environment and to maintain the the same is necessary to prevent or abate pollution.
of LLDA, the Secretary of DENR or his duly authorized ecological balance of the surrounding areas of the Camarin open (g) Deputize in writing or request assistance of appropriate
representative and the Secretary of DILG or his duly authorized dumpsite, the question as to which agency can lawfully exercise government agencies or instrumentalities for the purpose of
representative were required to appear. jurisdiction over the matter remains highly open to question. enforcing this Executive Order and its implementing rules and
It was agreed at the conference that the LLDA had until December The City Government of Caloocan claims that it is within its regulations and the orders and decisions of the Authority.
15, 1992 to finish its study and review of respondent's technical power, as a local government unit, pursuant to the general The LLDA claims that the appellate court deliberately suppressed
plan with respect to the dumping of its garbage and in the event welfare provision of the Local Government Code, 17 to determine and totally disregarded the above provisions of Executive Order
of a rejection of respondent's technical plan or a failure of the effects of the operation of the dumpsite on the ecological No. 927, series of 1983, which granted administrative quasi-
settlement, the parties will submit within 10 days from notice balance and to see that such balance is maintained. On the basis judicial functions to LLDA on pollution abatement cases.
their respective memoranda on the merits of the case, after which of said contention, it questioned, from the inception of the In light of the relevant environmental protection laws cited which
the petition shall be deemed submitted for dispute before the Regional Trial Court of Caloocan City, the are applicable in this case, and the corresponding overlapping
resolution.15Notwithstanding such efforts, the parties failed to power and authority of the LLDA to issue a cease and desist order jurisdiction of government agencies implementing these laws, the
settle the dispute. enjoining the dumping of garbage in the Barangay Camarin over resolution of the issue of whether or not the LLDA has the
On April 30, 1993, the Court of Appeals promulgated its decision which the City Government of Caloocan has territorial jurisdiction. authority and power to issue an order which, in its nature and
holding that: (1) the Regional Trial Court has no jurisdiction on The Court of Appeals sustained the position of the City of effect was injunctive, necessarily requires a determination of the
appeal to try, hear and decide the action for annulment of LLDA's Caloocan on the theory that Section 7 of Presidential Decree No. threshold question: Does the Laguna Lake Development
cease and desist order, including the issuance of a temporary 984, otherwise known as the Pollution Control law, authorizing Authority, under its Charter and its amendatory laws, have the
restraining order and preliminary injunction in relation thereto, the defunct National Pollution Control Commission to issue an ex- authority to entertain the complaint against the dumping of
since appeal therefrom is within the exclusive and appellate parte cease and desist order was not incorporated in Presidential garbage in the open dumpsite in Barangay Camarin authorized by
jurisdiction of the Court of Appeals under Section 9, par. (3), of Decree No. 813 nor in Executive Order No. 927, series of the City Government of Caloocan which is allegedly endangering
Batas Pambansa Blg. 129; and (2) the Laguna Lake Development 1983. The Court of Appeals ruled that under Section 4, par. (d), of the health, safety, and welfare of the residents therein and the
Authority has no power and authority to issue a cease and desist Republic Act No. 4850, as amended, the LLDA is instead required sanitation and quality of the water in the area brought about by
order under its enabling law, Republic Act No. 4850, as amended "to institute the necessary legal proceeding against any person exposure to pollution caused by such open garbage dumpsite?
by P.D. No. 813 and Executive Order who shall commence to implement or continue implementation The matter of determining whether there is such pollution of the
No. 927, series of 1983. of any project, plan or program within the Laguna de Bay region environment that requires control, if not prohibition, of the
The Court of Appeals thus dismissed Civil Case No. 15598 and the without previous clearance from the Authority." operation of a business establishment is essentially addressed to
preliminary injunction issued in the said case was set aside; the The LLDA now assails, in this partition for review, the the Environmental Management Bureau (EMB) of the DENR
cease and desist order of LLDA was likewise set aside and the abovementioned ruling of the Court of Appeals, contending that, which, by virtue of Section 16 of Executive Order No. 192, series
temporary restraining order enjoining the City Mayor of Caloocan as an administrative agency which was granted regulatory and of 1987,18 has assumed the powers and functions of the defunct
and/or the City Government of Caloocan to cease and desist from adjudicatory powers and functions by Republic Act No. 4850 and National Pollution Control Commission created under Republic
dumping its garbage at the Tala Estate, Barangay Camarin, its amendatory laws, Presidential Decree No. 813 and Executive Act No. 3931. Under said Executive Order, a Pollution
Caloocan City was lifted, subject, however, to the condition that Order No. 927, series of 1983, it is invested with the power and Adjudication Board (PAB) under the Office of the DENR Secretary
any future dumping of garbage in said area, shall be in conformity authority to issue a cease and desist order pursuant to Section 4 now assumes the powers and functions of the National Pollution
with the procedure and protective works contained in the par. (c), (d), (e), (f) and (g) of Executive Order No. 927 series of Control Commission with respect to adjudication of pollution
proposal attached to the records of this case and found on pages 1983 which provides, thus: cases. 19
152-160 of the Rollo, which was thereby adopted by reference Sec. 4. Additional Powers and Functions. The authority shall have As a general rule, the adjudication of pollution cases generally
and made an integral part of the decision, until the corresponding the following powers and functions: pertains to the Pollution Adjudication Board (PAB), except in cases
restraining and/or injunctive relief is granted by the proper Court xxx xxx xxx where the special law provides for another forum. It must be
upon LLDA's institution of the necessary legal proceedings. (c) Issue orders or decisions to compel compliance with the recognized in this regard that the LLDA, as a specialized
Hence, the Laguna Lake Development Authority filed the instant provisions of this Executive Order and its implementing rules and administrative agency, is specifically mandated under Republic Act
petition for review on certiorari, now docketed as G.R. No. regulations only after proper notice and hearing. No. 4850 and its amendatory laws to carry out and make effective
110120, with prayer that the temporary restraining order lifted by (d) Make, alter or modify orders requiring the discontinuance of the declared national policy20 of promoting and accelerating the
the Court of Appeals be re-issued until after final determination pollution specifying the conditions and the time within which such development and balanced growth of the Laguna Lake area and
by this Court of the issue on the proper interpretation of the discontinuance must be accomplished. the surrounding provinces of Rizal and Laguna and the cities of
powers and authority of the LLDA under its enabling law. San Pablo, Manila, Pasay, Quezon and Caloocan21 with due regard
 38

and adequate provisions for environmental management and To be sure, the LLDA was not expressly conferred the power "to Policies or the 1987 Constitution. Article II, Section 16 which
control, preservation of the quality of human life and ecological issue and ex-parte cease and desist order" in a language, as provides:
systems, and the prevention of undue ecological disturbances, suggested by the City Government of Caloocan, similar to the The State shall protect and advance the right of the people to a
deterioration and pollution. Under such a broad grant and power express grant to the defunct National Pollution Control balanced and healthful ecology in accord with the rhythm and
and authority, the LLDA, by virtue of its special charter, obviously Commission under Section 7 of P.D. No. 984 which, admittedly harmony of nature.
has the responsibility to protect the inhabitants of the Laguna was not reproduced in P.D. No. 813 and E.O. No. 927, series of As a constitutionally guaranteed right of every person, it carries
Lake region from the deleterious effects of pollutants emanating 1983. However, it would be a mistake to draw therefrom the the correlative duty of non-impairment. This is but in consonance
from the discharge of wastes from the surrounding areas. In conclusion that there is a denial of the power to issue the order in with the declared policy of the state "to protect and promote the
carrying out the aforementioned declared policy, the LLDA is question when the power "to make, alter or modify orders right to health of the people and instill health consciousness
mandated, among others, to pass upon and approve or requiring the discontinuance of pollution" is expressly and clearly among them."28 It is to be borne in mind that the Philippines is
disapprove all plans, programs, and projects proposed by local bestowed upon the LLDA by Executive Order No. 927, series of party to the Universal Declaration of Human Rights and the Alma
government offices/agencies within the region, public 1983. Conference Declaration of 1978 which recognize health as a
corporations, and private persons or enterprises where such Assuming arguendo that the authority to issue a "cease and desist fundamental human right. 29
plans, programs and/or projects are related to those of the LLDA order" were not expressly conferred by law, there is jurisprudence The issuance, therefore, of the cease and desist order by the
for the development of the region. 22 enough to the effect that the rule granting such authority need LLDA, as a practical matter of procedure under the circumstances
In the instant case, when the complainant Task Force Camarin not necessarily be express.25 While it is a fundamental rule that an of the case, is a proper exercise of its power and authority under
Dumpsite of Our Lady of Lourdes Parish, Barangay Camarin, administrative agency has only such powers as are expressly its charter and its amendatory laws. Had the cease and desist
Caloocan City, filed its letter-complaint before the LLDA, the granted to it by law, it is likewise a settled rule that an order issued by the LLDA been complied with by the City
latter's jurisdiction under its charter was validly invoked by administrative agency has also such powers as are necessarily Government of Caloocan as it did in the first instance, no further
complainant on the basis of its allegation that the open dumpsite implied in the exercise of its express powers.26 In the exercise, legal steps would have been necessary.
project of the City Government of Caloocan in Barangay Camarin therefore, of its express powers under its charter as a regulatory The charter of LLDA, Republic Act No. 4850, as amended, instead
was undertaken without a clearance from the LLDA, as required and quasi-judicial body with respect to pollution cases in the of conferring upon the LLDA the means of directly enforcing such
under Section 4, par. (d), of Republic Act. No. 4850, as amended Laguna Lake region, the authority of the LLDA to issue a "cease orders, has provided under its Section 4 (d) the power to institute
by P.D. No. 813 and Executive Order No. 927. While there is also and desist order" is, perforce, implied. Otherwise, it may well be "necessary legal proceeding against any person who shall
an allegation that the said project was without an Environmental reduced to a "toothless" paper agency. commence to implement or continue implementation of any
Compliance Certificate from the Environmental Management In this connection, it must be noted that in Pollution Adjudication project, plan or program within the Laguna de Bay region without
Bureau (EMB) of the DENR, the primary jurisdiction of the LLDA Board v. Court of Appeals, et al.,27 the Court ruled that the previous clearance from the LLDA."
over this case was recognized by the Environmental Management Pollution Adjudication Board (PAB) has the power to issue an ex- Clearly, said provision was designed to invest the LLDA with
Bureau of the DENR when the latter acted as intermediary at the parte cease and desist order when there isprima facie evidence of sufficiently broad powers in the regulation of all projects initiated
meeting among the representatives of the City Government of an establishment exceeding the allowable standards set by the in the Laguna Lake region, whether by the government or the
Caloocan, Task Force Camarin Dumpsite and LLDA sometime in anti-pollution laws of the country. The ponente, Associate Justice private sector, insofar as the implementation of these projects is
July 1992 to discuss the possibility of Florentino P. Feliciano, declared: concerned. It was meant to deal with cases which might possibly
re-opening the open dumpsite. Ex parte cease and desist orders are permitted by law and arise where decisions or orders issued pursuant to the exercise of
Having thus resolved the threshold question, the inquiry then regulations in situations like that here presented precisely such broad powers may not be obeyed, resulting in the thwarting
narrows down to the following issue: Does the LLDA have the because stopping the continuous discharge of pollutive and of its laudabe objective. To meet such contingencies, then the
power and authority to issue a "cease and desist" order under untreated effluents into the rivers and other inland waters of the writs of mandamus and injunction which are beyond the power of
Republic Act No. 4850 and its amendatory laws, on the basis of Philippines cannot be made to wait until protracted litigation over the LLDA to issue, may be sought from the proper courts.
the facts presented in this case, enjoining the dumping of garbage the ultimate correctness or propriety of such orders has run its Insofar as the implementation of relevant anti-pollution laws in
in Tala Estate, Barangay Camarin, Caloocan City. full course, including multiple and sequential appeals such as the Laguna Lake region and its surrounding provinces, cities and
The irresistible answer is in the affirmative. those which Solar has taken, which of course may take several towns are concerned, the Court will not dwell further on the
The cease and desist order issued by the LLDA requiring the City years. The relevant pollution control statute and implementing related issues raised which are more appropriately addressed to
Government of Caloocan to stop dumping its garbage in the regulations were enacted and promulgated in the exercise of that an administrative agency with the special knowledge and
Camarin open dumpsite found by the LLDA to have been done in pervasive, sovereign power to protect the safety, health, and expertise of the LLDA.
violation of Republic Act No. 4850, as amended, and other general welfare and comfort of the public, as well as the WHEREFORE, the petition is GRANTED. The temporary restraining
relevant environment laws,23 cannot be stamped as an protection of plant and animal life, commonly designated as the order issued by the Court on July 19, 1993 enjoining the City
unauthorized exercise by the LLDA of injunctive powers. By its police power. It is a constitutional commonplace that the ordinary Mayor of Caloocan and/or the City Government of Caloocan from
express terms, Republic Act No. 4850, as amended by P.D. No. requirements of procedural due process yield to the necessities of dumping their garbage at the Tala Estate, Barangay Camarin,
813 and Executive Order No. 927, series of 1983, authorizes the protecting vital public interests like those here involved, through Caloocan City is hereby made permanent.
LLDA to "make, alter or modify order requiring the discontinuance the exercise of police power. . . . SO ORDERED.
or pollution."24 (Emphasis supplied) Section 4, par. (d) explicitly The immediate response to the demands of "the necessities of
authorizes the LLDA to make whatever order may be necessary in protecting vital public interests" gives vitality to the statement on
the exercise of its jurisdiction. ecology embodied in the Declaration of Principles and State