jurisdiction cases
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Jurisdiction CasesTRANSCRIPT
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Bank of Commerce, petitioner v. Planters
Development Bank and Bangko Sentral ngPilipinas,respondents/Bangko Sentral ng
Pilipinas, petitioner v. Planters
Development Bank, respondent
Facts: For the 1
st
set of CB bills, RizalCommercial Banking Corporation (RCBC) was
the registered owner of 7 Central Bank (CB)
bills with a total face al!e of "hp 7# million,
which were eent!all$ sold to Bank of
Commerce (B%C), which, in t!rn, sold these CB
bills to "lanters &eelopment Bank ("&B) aseidenced b$ a '&etached ssignment*
week later, "&B sold to the B%C +reas!r$ Bills
worth "hp 7# million as eidenced b$ a +rading
%rder and Conrmation of -ale For the .nd set
of CB bills, RCBC sold . CB bills with a total
face al!e of "hp .# million to the "&B and
deliered to "&B the corresponding &etached
ssignment "&B deliered to Bancap the .CBbills which in t!rn sold the CB bills to l/
manah 0slamic 0nestment Bank of the
"hilippines, which also sold it to the B%C pon
learning of the transfers inoling the CB Bills,
the "&B informed the o2cer/in/charge of the
B-"3s 4oernment -ec!rities &epartment of
the "&B3s claim oer these CB bills, based on
the
&etached ssignments in its possession +he
re5!ests of "&B were denied b$ the o2cer/in/
charge which prompted the petitioner to le an
action so as to compel the B-" to determine
the part$ legall$ entitled to the proceeds of thes!b6ect CB bills
0ss!e: hether or not the Bangko -entral ng
"ilipinas has 6!risdiction in determining the
part$ legall$ entitled to the proceeds of the CB
bills
8eld: nder the 9ew Central Bank ct (R
7;<), the B-" is gien the responsibilit$ of
proiding polic$ directions in the areas of
mone$, banking and credit= it is gien theprimar$ ob6ectie of maintaining price stabilit$,
cond!cie to a balanced and s!stainable
growth of the econom$ and of promoting andmaintaining monetar$ stabilit$ and
conertibilit$ of the peso >oreoer, the
Constit!tion e?pressl$ grants the B-" the
power of s!perision oer the operation of
banks hile R 7;< empowers the B-" tocond!ct administratie hearings and render
6!dgment for or against an entit$ !nder its
s!perisor$ and reg!lator$ powers, the grant of
5!asi/6!dicial a!thorit$ to the B-" cannot
possibl$ e?tend to sit!ation which do not call
for the e?ercise b$ the B-" of its s!perisor$ or
reg!lator$ f!nctions oer entities within its
6!risdiction +he fact alone that the parties
inoled are banking instit!tions does not
necessaril$ call for the e?ercise b$ the B-" of
its 5!asi/6!dicial powers !nder the law
ADDITION I!!S "ANDA!#$ON% CI&IC '
SOCIA! O(%ANI)ATION, INC. *A"CSO+,Petitionervs"%A-O(!D P(OP(TIS 'O!DIN%, INC., -I!(DO I. I"P(IA!,in is capacit0 as Director, NC(, andO#SIN% AND !AND#S (%#!ATO($BOA(D *!(#B+, DPA(T"NTO NAT#(A! (SO#(CS *DN(+,(espondents
acts1 >egaworld ("riate respondent) was theregistered owner of a parcel of land located inBrg$ ddition 8ills, >andal!$ong Cit$, coeredb$ a +C+ +itle iss!ed b$ the Register of &eedson which it concept!alized the constr!ction ofa residential
condomini!m comple? called as the 'ack/ack 8eights Condomini!m* >egaworld sec!red the necessar$ clearances,licenses and permits for the pro6ect, incl!ding:1 Certicate of @ocational Aiabilit$ and&eelopment permit iss!ed b$ 8@RB. nironmental Compliance Certicate iss!edb$ &9R< B!ilding "ermit iss!ed b$ the o2ce of theB!ilding %2cial of >andal!$ong Cit$ Baranga$ Clearance iss!ed b$ the Chairmanof Baranga$ ddition 8ills, >andal!$ong Cit$
"ending constr!ction, plaintiD led a complaintbefore the R+C of "asig Cit$, Branch 1;E for:1 nn!lment of the B!ilding "ermit, C@A, CCand &eelopment "ermit=. "rohibit the iss!ance to >egaworld ofCerticate of Registration and @icense to -ellCondomini!m !nits and=< "ermanentl$ en6oin @ocal and 9ationalB!ilding %2cials from iss!ing licenses andpermits>egaworld led a >otion to &ismiss thecomplaint for lack of ca!se of action and that
6!risdiction oer the case was with 8@RB andnot with the reg!lar co!rts, howeer the R+Cdenied the motion, which lead to >egaworldling its nswer to the complaint, and the trialon the merits ens!ed, rendering decision infao!r to the petitionerggrieed with the R+C3s decision, respondentappealed the rendered decision to the Co!rt ofppeals which reersed and set aside s!chlower co!rts3 &ecision nding petitioner3sfail!re to e?ha!st administratie remediesbefore seeking 6!dicial interention fromco!rts s e?pected, petitioner led a motionfor reconsideration which howeer the Cdenied 8ence, petitioner led the instantpetition for reiew on certiorari !nder R!le; to the -!preme Co!rt
Iss2e1 hether or 9ot the C erred in itsnding abo!t the petitioner3s fail!re to e?ha!stadministratie remedies before seeking 6!dicial interention
eld1 +he co!rt nds the petition witho!t
merit t the o!tset, the parties disc!ssesiss!es, altho!gh ostensibl$ legal, act!all$re5!ire the co!rt to make ndings of facts 0t islong settled b$ law and 6!rispr!dence that theco!rt is not a trier of facts +herefore, the onl$releant iss!e to be resoled in this case iswhether or not the remed$ so!ght b$ thepetitioner in the trial co!rt is in iolation of thelegal principle of the e?ha!stion ofadministratie remedies Citing the case ofRep!blic s @acap, the co!rt e?po!nded on thedoctrine of e?ha!stion of administratieremedies and related doctrine ofprimar$ 6!risdiction in this wise:1
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+he general r!le is that before a part$ ma$seek the interention of the co!rt, he sho!ldrst aail of all the means aDorded him b$administratie processes +he iss!es whichadministratie agencies are a!thorized todecide sho!ld not be s!mmaril$ taken fromthem and s!bmitted to a co!rt witho!t rstgiing s!ch administratie agenc$ theopport!nit$ to dispose of the same after d!edeliberation. Corollar$ to the doctrine of e?ha!stion ofadministratie remedies is the doctrine ofprimar$ 6!risdiction= that is, co!rts cannot orwill not determine a controers$ inoling a5!estion which is within the 6!risdiction of theadministratie trib!nal prior to the resol!tion of that 5!estion b$ the administratie trib!nal,where the 5!estion demands the e?ercise ofso!nd administratie discretion, re5!iringspecial knowledge, e?perience and serices ofthe administratie trib!nal to determinetechnical and intricate matters of fact< 9onetheless, the doctrines en!nciated whichare based on so!nd p!blic polic$ and practicalconsiderations are not inGe?ible r!les +hereare man$ accepted e?ceptions, s!ch as: here there is estoppel on the part ofthe part$ inoking the doctrine=B here the challenged administratie act ispatentl$ illegal, amo!nting to lack of
6!risdiction=C here there is !nreasonable dela$ or o2cialinaction that will irretrieabl$ pre6!dice the
complainant=& here the amo!nt inoled is relatiel$small so as to make the r!le impractical andoppressie= here the 5!estion inoled is p!rel$ legaland will !ltimatel$ hae to be decided b$ theco!rts of 6!stice=F here 6!dicial interention is !rgent=4 hen its application ma$ ca!se great andirreparable damage=8 here the controerted acts iolate d!eprocess=
0 hen the iss!e of non/e?ha!stionof administratie remedies has been renderedmoot=
H hen there is no other plain, speed$and ade5!ate remed$=I hen strong p!blic interest is inoled=@ 0n 5!o warranto proceedings0n iew of the foregoing, the co!rt nds thatnone of the aforementioned e?ceptions e?ist inthe case at bar 8ence, the co!rt concl!desthat the Co!rt of ppeals committed noreersible error in setting aside the trial co!rtdecision and dismissing said complaint8RF%R, premises considered, the petitionis hereb$ &90& and the assailed decision andresol!tion of the Co!rt of ppeals are hereb$FF0R>&
SAA&D(A &S SC
FC+-:
1J;: 9aga +elephone
Compan$ (9atelco), 0nc was organized
with "1##I a!thorized capital
1J7: 9atelco decided to increase its
a!thorized capital to "<,###,#####
s re5!ired b$ the "!blic
-erice ct, 9atelco led an application for
the approal of the increased a!thorized
capital with the then Board of
Comm!nications (B%C)
Han!ar$ E, 1J7;: approed with
conditions:
+hat the iss!ance of
the shares of stocks will be for a period of
one $ear from the date hereof, Kafter
which no f!rther iss!es will be made
witho!t preio!s a!thorit$ from this
BoardK
9atelco led its mended rticles of
0ncorporation with the -C
the original a!thorized
capital of "1##I was alread$ paid
increased capital of ".J>
the s!bscribers s!bscribed to ";E#I of
which "1;I was f!ll$ paid
capital stock of 9atelco was diided
into .1<I C- and E7I "-, both at a par
al!e of "1#Lshares
pril 1., 1J77: itho!t no prior
a!thorization from the B%C (now 9ational
+elecomm!nications Commission)
(9+C), 9atelco entered into a contract with
Comm!nication -erices, 0nc (C-0) for the
Kman!fact!re, s!ppl$, delier$ and
installationK of telephone e5!ipment
9atelco iss!ed .I sharesof C- to C-0 as downpa$ment
>a$ ;, 1J7J: iss!ed
another 1.I shares of C- to C-0
>a$ 1J, 1J7J: ann!al stockholdersM
meeting to elect their 7 directors to their
B%& for the $ear 1J7J/1JE#
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"edro @opez &ee (&ee) was
!nseated as Chairman of the Board and
"resident b!t was elected as one of the
directors, together with his wife, melia
@opez &ee
C-0 was able to gain control
when their legal co!nsel, tt$ @!ciano
>agga$ (>agga$) won a seat in the Board
tt$ >agga$ became
president !pon reorganization
mong the directors: >r H!stino de
Hes!s, -r, >r "edro @opez &ee and >rs
melia C @opez &ee neer attended the
>agga$ Board thereb$ onl$ >agga$
representaties and tt$ >agga$
attended
as per contract the$
iss!ed 11<,E## shares of stock in faor of
C-0
&ee haing been !nseated led a
petition in the -C 5!estioning the alidit$of the elections
gro!nd: no alid list of
stockholders thro!gh which the right to
ote co!ld be determined
s pra$ed for a restraining order was
iss!ed b$ the -C placing o2cers of the
1J7E/1J7J 9atelco Board in hold/oer
capacit$
pon eleation to the -C: dismissed
the petition for being
premat!re= restraining order was
restrained
res!lted in the !nseating of
the >agga$ gro!p from the B%& in a
Khold/oerK capacit$
-C: ordering the holding of special
stockholderM meeting to elect the new
members of the B%& based on its ndings
of who are entitled to ote
H!ne .<, 1JE1: &ee led a petition
for certiorariLappeal with the -C en banc
-C en banc: dismissed for
lack of merit
>a$ .#, 1JE.: ntonio Aillasenor led
wL the CF0 claiming that he was an
assignee of an option to rep!rchase
<I shares of C- of 9atelco !nder a &eedof ssignment e?ec!ted in his faor
>a$ .1, 1JE.: restraining order dwas
iss!ed b$ the lower co!rt commanding
desistance from the sched!led election
!ntil f!rther orders
>a$ .., 1JE.: controlling ma6orit$ of
the stockholders proceeded with the
elections !nder the s!perision of the -C
representaties
>a$ .;, 1JE.: -C recognized the
election and the d!l$ elected directors
@opez &ee gro!p headed b$
>essrs H!stino &e Hes!s and H!lio @opez
&ee kept insisting no elections were held
and ref!sed to acate their positions
>a$ .E, 1JE.: -C iss!ed another
order directing the hold/oer directors and
o2cers to t!rn oer their respectie posts
and directing the -heriD of 9aga Cit$ and
other enforcement agencies to enforce its
order
>a$ .J, 1JE.: hold/oer o2cers
peacef!ll$ acated
H!ne ., 1JE.: Aillasenor led a charge
for contempt
-eptember 7, 1JE.: lower co!rt
rendered C-0 9ilda Ramos, @!ciano
>agga$, &esiderio -aaedra, !g!stoFederis and rnesto >ig!el, g!ilt$ of
contempt of co!rt
-eptember 17, 1JE.: C-0 gro!p led
a petition for certiorari and prohibition
with preliminar$ in6!nction or restraining
order against the CF0
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pril 1,
1JE<: 0C: nn!ling contempt charge
0---:
1 L9 -C has the power and
6!risdiction to declare n!ll and
oid shares of stock iss!ed b$ 9+@C%
to C-0 for iolation of -ec .# (h) of the
"!blic -erice ct / 9%
. L9 9atelco stockholders hae a right
of preemption to the 11<,E## shares
< L9 the >a$ .., 1JE. election was
alid
8@&: &ismissed for lack of merit
1 9%
+he 6!risdiction of the -C is limited to
matters intrinsicall$ connected with the
reg!lation of corporations, partnerships
and associations and those dealing with
internal aDairs of s!ch entities= "& J#./
does not confer 6!risdiction to -C oer all
matters aDecting corporations +he 6!risdiction of the -C is
limited to deciding the controers$ in the
election of the directors and o2cers of
9atelco
+he -C is empowered b$
"& J#./ to decide intra/corporate
controersies and that is precisel$ the onl$
iss!e in this case
. 9%
+here is distinction between:
an order to issue shares on or
before >a$ 1J, 1J7J= and
actual issuance of the shares
after >a$ 1J, 1J7J / C-0 was in control of
oting shares and the Board
+he power to iss!e shares of stocks in
a corporation is lodged in the board of
directors and nostockholders meeting is
re5!ired to consider it beca!se additional
iss!ance of shares of stocks does not need
approal of the stockholders / no iolation
of preemptie right
< N-
Clear from records that it was held
within the 6!risdiction of the lower
co!rt as it does not inole an intra/
corporate matter b!t merel$ a claim of apriate part$ of the right to rep!rchase
common shares of stock of 9atelco and
that the restraining order was not meant
to stop the election d!l$ called for b$ the
-C and a matter p!rel$ within the
e?cl!sie 6!risdiction of the -C
temporar$ restraining order amo!nted
to an in6!nctie relief against the -C
since the trial 6!dge in the lower co!rt
did not hae 6!risdiction in iss!ing the
5!estioned restraining order, disobedience
thereto did not constit!te contempt
B!# BA( COCON#T PI!IPPINS &S T
ONO(AB! (ANCISCO S. TANT#ICO
Facts: +he "resident iss!ed "residential &ecree
9o .7 establishing a cocon!t stabilization
f!nd nder this decree, the "hilippine Cocon!t
!thorit$, in addition to its powers granted
!nder "residential &ecree 9o .<., was
a!thorized to form!late and immediatel$
implement a stabilization scheme for cocon!t/
based cons!mer goods,
R!les and Reg!lations goerning the collection
and disposition of the Cocon!t Cons!mers
-tabilization F!nd (CC-F) prom!lgated b$ the
Cocon!t Cons!mer -tabilization Committee
proides that the collection of le$ in eer$
rst sale of copra resecada or its e5!ialent in
terms of whole n!ts shall take eDect on !g!st
1#, 1J7< +he petitioners are all end/!sers and
as s!ch, are le$/collectors and remitters
+he respondent cting Chairman of the
Commission on !dit initiated a special a!dit of cocon!t end/!ser companies, which incl!de
herein petitioners, with respect to their
Cocon!t Cons!mers -tabilization F!nd le$
collections and the s!bsidies the$ had
receied s a res!lt of the initial ndings of
the "erformance !dit %2ce with respect onl$
to the petitioners, respondent cting C%
Chairman directed the Chairman, the
dministrator, and the >ilitar$ -!perisor of
"C and the >anager of the Cocon!t
Cons!mers -tabilization F!nd, in ario!s letters
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to them (nne?es 4/. 8, 0, H, @ and 9 of
petition) to collect the short leies andoerpaid s!bsidies, and to appl$ s!bsid$ claims
to the settlement of short leies sho!ld the
petitioners fail to remit the amo!nt d!e
+he remaining iss!es all reole on the
5!estionOfter the "hilippine Cocon!t
!thorit$Othe a!thorit$ ested b$ law to
implement the stabilization scheme for the
cocon!t ind!str$ !nder "& .7, which
incl!des the collection of the le$ to s!pport
the -tabilization F!ndOhad acted, can theCommission on !dit sa$ that the r!les and
decisions of the "C are erroneo!s and n!llif$
them, to the pre6!dice of petitioners who
obedientl$ complied with said r!les and
decisionsK
0ss!e: hether or not the respondent C%
Chairman was correct in disregarding the two
resol!tions of the "C 4oerning Board for
being !ltra ires is the main iss!e in this
petition +his iss!e became academic when thethen "resident of the "hilippines informed the
-olicitor 4eneral that the 4oerning Board of
the "C wo!ld contin!e to f!nction !ntil the
formal organization of the new 4oerning
Board Following this r!ling, the respondent
C% Chairman reconsidered his earlier stand
and allowed the petitioners to get their s!bsid$
claims which he had earlier ref!sed 0n eDect,
the respondent C% Chairman eent!all$
acknowledged the alidit$ of the two
5!estioned "C resol!tions
+he petitioners also 5!estion the respondentsM
a!thorit$ to a!dit them +he$ contend that
the$ are o!tside the ambit of respondentsM
Ka!ditK power which is conned to goernment/
owned or controlled corporations
8eld: his arg!ment has no merit -ection . (1)
of rticle 0P/& of the Constit!tion proides that
K+he Commission on !dit shall hae the
power, a!thorit$ and d!t$ to e?amine, a!dit,and settle all acco!nts pertaining to the
reen!es and receipts of, and e?pendit!res or
!ses of f!nds and propert$, owned or held intr!st b$ or pertaining to, the 4oernment, or
an$ of its s!bdiisions, agencies or
instr!mentalities, incl!ding goernment/owned
or controlled corporation with original charters,
and on a post/a!dit basis (d) s!ch non/goernmental entities receiing s!bsid$ or
e5!it$ directl$ or indirectl$ from or thro!gh the
4oernment which are re5!ired b$ law or the
granting instit!tion to s!bmit to s!ch a!dit as a
condition of s!bsid$ or e5!it$K (mphasis
s!pplied) +he Constit!tion formall$ embodies
the long established r!le that priate entities
who handle goernment f!nds or s!bsidies in
tr!st ma$ be e?amined or a!dited in their
handling of said f!nds b$ goernment a!ditors
doctrine of primar$ 6!risdiction the co!rts
cannot or will not determine a controers$
inoling a 5!estion which is within the 6!risdiction of an administratie trib!nal prior
to the decision of that 5!estion b$ the
administratie trib!nal, where the 5!estion
demands the e?ercise of so!nd administratie
discretion re5!iring the special knowledge,
e?perience, and serices of the administratie
trib!nal to determine technical and intricate
matters of fact, and a !niformit$ of r!ling is
essential to compl$ with the "!rposes of the
reg!lator$ stat!te administeredK
0n the case at bar, the petitioners hae not
shown thro!gh the la$ing down of concrete
fact!al fo!ndations that the respondentsM
5!estioned acts were done with grae ab!se of
discretion amo!nting to lack of 6!risdiction
%A(CIA &S 3C#TI& SC(TA($
Facts: +he -!preme Co!rt has dismissed the
petition of former rmed Forces of the
"hilippines (F") comptroller >a6or 4eneral
4arlos F 4arcia that so!ght to ann!l the
-eptember J, .#11 Conrmation of -entence
b$ the %2ce of the "resident (%") +hesentence handed down b$ the -pecial 4eneral
Co!rt >artial 9o . had ordered his
dishonorable discharge from serice, forfeit!reof all his pa$ and allowances, and connement
for two $ears in a penitentiar$ %n -eptember
1, .#11, or a week after the %" conrmed the
sentence of the co!rt martial against him,
4arcia was arrested and detained andcontin!es to be detained at the ma?im!m
sec!rit$ compo!nd of the 9ational "enitentiar$
in >!ntinl!pa 4arcia, tried b$ the -pecial
4eneral Co!rt >artial 9R ., was charged with
and conicted of iolation of the Jth rticle of
ar (Cond!ct nbecoming an %2cer and
4entleman) and iolation of the J7th rticle of
ar (Cond!ct "re6!dicial to 4ood %rder and
>ilitar$ &iscipline) for failing to disclose all his
assets in his -worn -tatement of ssets and
@iabilities and 9etworth for the $ear .##< as
re5!ired b$ R <#1J, as amended in relation to
R 71<
0ss!e: hether or not the o2ce of the
"resident commit grae ab!se of discretion
8eld: +he co!rt held that the %" did not
commit an$ grae ab!se of discretion in iss!ing
the Conrmation of -entence +he Co!rt
!pheld the a!thorit$ of the "resident, as
Commander/in/Chief, to conrm the sentence
0t held that the 4eneral Co!rt >artial had
6!risdiction oer the case since it was
indisp!table that 4arcia was an o2cer in the
actie serice of F" when he committed the
iolations !ntil his arraignment 4arcia3s
mandator$ retirement on 9oember 1E, .##
did not diest the 4eneral Co!rt >artial of its
6!risdiction nd since the 4eneral Co!rt
>artial has 6!risdiction, the Co!rt held that the
"resident, as Commander/in/Chief, also
ac5!ired 6!risdiction as mandated !nder rticle
7 of the rticles of ar
+he Co!rt stressed that rticle E of the
rticles of ar ests on the "resident, as
Commander/in/Chief, the power to approe or
disapproe the entire or an$ part of the
sentence gien b$ the co!rt martial, while
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rticle J of the same grants the "resident the
power to mitigate or remit a sentence
'+h!s, the power of the "resident to conrm,
mitigate and remit a sentence of erring militar$
personnel is a clear recognition of the
s!periorit$ of ciilian a!thorit$ oer the
militar$ 8oweer, altho!gh the law (rticles ofar) which conferred those powers to the
"resident is silent as to the ded!ction of the
period of preentie connement to the
penalt$ imposed, as disc!ssed earlier, s!ch is
also the right of an acc!sed proided for b$rticle .J of the R"C,* held the Co!rt