Republic of the Philippines SUPREME COURT Manila EN BANC G.R. No. 12 !

1" Octobe# $% 1""& 'U(ON )E*E'OPMENT BAN+% petitione#% ,s. ASSOC-AT-ON O. 'U(ON )E*E'OPMENT BAN+ EMP'O/EES an0 ATT/. ESTER S. GARC-A in he# capacit1 as *O'UNTAR/ ARB-TRATOR% #espon0ents. ROMERO% 2.3 .#o4 a sub4ission a5#ee4ent of the 'u6on )e,elop4ent Ban7 8')B9 an0 the Association of 'u6on )e,elop4ent Ban7 E4plo1ees 8A')BE9 a#ose an a#bit#ation case to #esol,e the follo:in5 issue3 ;hethe# o# not the co4pan1 has ,iolate0 the Collecti,e Ba#5ainin5 A5#ee4ent p#o,ision an0 the Me4o#an0u4 of A5#ee4ent 0ate0 Ap#il 1""<% on p#o4otion. At a confe#ence% the pa#ties a5#ee0 on the sub4ission of thei# #especti,e Position Pape#s on )ece4be# 1=1&% 1""<. Att1. Este# S. Ga#cia% in he# capacit1 as *olunta#1 A#bit#ato#% #ecei,e0 A')BE>s Position Pape# on 2anua#1 1?% 1""&. ')B% on the othe# han0% faile0 to sub4it its Position Pape# 0espite a lette# f#o4 the *olunta#1 A#bit#ato# #e4in0in5 the4 to 0o so. As of Ma1 2!% 1""& no Position Pape# ha0 been file0 b1 ')B. On Ma1 2<% 1""&% :ithout ')B>s Position Pape#% the *olunta#1 A#bit#ato# #en0e#e0 a 0ecision 0isposin5 as follo:s3 ;@ERE.ORE% fin0in5 is he#eb1 4a0e that the Ban7 has not a0he#e0 to the Collecti,e Ba#5ainin5 A5#ee4ent p#o,ision no# the Me4o#an0u4 of A5#ee4ent on p#o4otion. @ence% this petition fo# ce#tio#a#i an0 p#ohibition see7in5 to set asi0e the 0ecision of the *olunta#1 A#bit#ato# an0 to p#ohibit he# f#o4 enfo#cin5 the sa4e.

-n labo# la: conteAt% a#bit#ation is the #efe#ence of a labo# 0ispute to an i4pa#tial thi#0 pe#son fo# 0ete#4ination on the basis of e,i0ence an0 a#5u4ents p#esente0 b1 such pa#ties :ho ha,e boun0 the4sel,es to accept the 0ecision of the a#bit#ato# as final an0 bin0in5. A#bit#ation 4a1 be classifie0% on the basis of the obli5ation on :hich it is base0% as eithe# co4pulso#1 o# ,olunta#1. Co4pulso#1 a#bit#ation is a s1ste4 :he#eb1 the pa#ties to a 0ispute a#e co4pelle0 b1 the 5o,e#n4ent to fo#e5o thei# #i5ht to st#i7e an0 a#e co4pelle0 to accept the #esolution of thei# 0ispute th#ou5h a#bit#ation b1 a thi#0 pa#t1. 1 The essence of a#bit#ation #e4ains since a #esolution of a 0ispute is a##i,e0 at b1 #eso#t to a 0isinte#este0 thi#0 pa#t1 :hose 0ecision is final an0 bin0in5 on the pa#ties% but in co4pulso#1 a#bit#ation% such a thi#0 pa#t1 is no#4all1 appointe0 b1 the 5o,e#n4ent. Un0e# ,olunta#1 a#bit#ation% on the othe# han0% #efe##al of a 0ispute b1 the pa#ties is 4a0e% pu#suant to a ,olunta#1 a#bit#ation clause in thei# collecti,e a5#ee4ent% to an i4pa#tial thi#0 pe#son fo# a final an0 bin0in5 #esolution. 2 -0eall1% a#bit#ation a:a#0s a#e suppose0 to be co4plie0 :ith b1 both pa#ties :ithout 0ela1% such that once an a:a#0 has been #en0e#e0 b1 an a#bit#ato#% nothin5 is left to be 0one b1 both pa#ties but to co4pl1 :ith the sa4e. Afte# all% the1 a#e p#esu4e0 to ha,e f#eel1 chosen a#bit#ation as the 4o0e of settle4ent fo# that pa#ticula# 0ispute. Pu#suant the#eto% the1 ha,e chosen a 4utuall1 acceptable a#bit#ato# :ho shall hea# an0 0eci0e thei# case. Abo,e all% the1 ha,e 4utuall1 a5#ee0 to 0e boun0 b1 sai0 a#bit#ato#>s 0ecision. -n the Philippine conteAt% the pa#ties to a Collecti,e Ba#5ainin5 A5#ee4ent 8CBA9 a#e #eBui#e0 to inclu0e the#ein p#o,isions fo# a 4achine#1 fo# the #esolution of 5#ie,ances a#isin5 f#o4 the inte#p#etation o# i4ple4entation of the CBA o# co4pan1 pe#sonnel policies. ! .o# this pu#pose% pa#ties to a CBA shall na4e an0 0esi5nate the#ein a ,olunta#1 a#bit#ato# o# a panel of a#bit#ato#s% o# inclu0e a p#oce0u#e fo# thei# selection% p#efe#abl1 f#o4 those acc#e0ite0 b1 the National Conciliation an0 Me0iation Boa#0 8NCMB9. A#ticle 2$1 of the 'abo# Co0e acco#0in5l1 p#o,i0es fo# eAclusi,e o#i5inal Cu#is0iction of such ,olunta#1 a#bit#ato# o# panel of a#bit#ato#s o,e# 819 the inte#p#etation o# i4ple4entation of the CBA an0 829 the inte#p#etation o# enfo#ce4ent of co4pan1 pe#sonnel policies. A#ticle 2$2 autho#i6es the4% 1

but onl1 upon a5#ee4ent of the pa#ties% to eAe#cise Cu#is0iction o,e# othe# labo# 0isputes. On the othe# han0% a labo# a#bite# un0e# A#ticle 21D of the 'abo# Co0e has Cu#is0iction o,e# the follo:in5 enu4e#ate0 cases3 . . . 8a9 EAcept as othe#:ise p#o,i0e0 un0e# this Co0e the 'abo# A#bite#s shall ha,e o#i5inal an0 eAclusi,e Cu#is0iction to hea# an0 0eci0e% :ithin thi#t1 8! 9 calen0a# 0a1s afte# the sub4ission of the case b1 the pa#ties fo# 0ecision :ithout eAtension% e,en in the absence of steno5#aphic notes% the follo:in5 cases in,ol,in5 all :o#7e#s% :hethe# a5#icultu#al o# non= a5#icultu#al3 1. 2. !. Unfai# labo# p#actice casesE Te#4ination 0isputesE -f acco4panie0 :ith a clai4 fo# #einstate4ent% those cases that :o#7e#s 4a1 file in,ol,in5 :a5es% #ates of pa1% hou#s of :o#7 an0 othe# te#4s an0 con0itions of e4plo14entE Clai4s fo# actual% 4o#al% eAe4pla#1 an0 othe# fo#4s of 0a4a5es a#isin5 f#o4 the e4plo1e#=e4plo1ee #elationsE Cases a#isin5 f#o4 an1 ,iolation of A#ticle 2$< of this Co0e% inclu0in5 Buestions in,ol,in5 the le5alit1 of st#i7es an0 loc7outsE EAcept clai4s fo# E4plo1ees Co4pensation% Social Secu#it1% Me0ica#e an0 4ate#nit1 benefits% all othe# clai4s% a#isin5 f#o4 e4plo1e#=e4plo1ee #elations% inclu0in5 those of pe#sons in 0o4estic o# househol0 se#,ice% in,ol,in5 an a4ount eAcee0in5 fi,e thousan0 pesos 8P&% . 9 #e5a#0less of :hethe# acco4panie0 :ith a clai4 fo# #einstate4ent. AAA AAA

of ou# p#esent la: #elatin5 to ,olunta#1 a#bit#ation p#o,i0es that F8t9he a:a#0 o# 0ecision of the *olunta#1 A#bit#ato# . . . shall be final an0 eAecuto#1 afte# ten 81 9 calen0a# 0a1s f#o4 #eceipt of the cop1 of the a:a#0 o# 0ecision b1 the pa#ties%F & :hile the F809ecision% a:a#0s% o# o#0e#s of the 'abo# A#bite# a#e final an0 eAecuto#1 unless appeale0 to the Co44ission b1 an1 o# both pa#ties :ithin ten 81 9 calen0a# 0a1s f#o4 #eceipt of such 0ecisions% a:a#0s% o# o#0e#s.F $ @ence% :hile the#e is an eAp#ess 4o0e of appeal f#o4 the 0ecision of a labo# a#bite#% Republic Act No. $D1& is silent :ith #espect to an appeal f#o4 the 0ecision of a ,olunta#1 a#bit#ato#. /et% past p#actice sho:s that a 0ecision o# a:a#0 of a ,olunta#1 a#bit#ato# is% 4o#e often than not% ele,ate0 to the Sup#e4e Cou#t itself on a petition fo# ce#tio#a#i% D in effect eBuatin5 the ,olunta#1 a#bit#ato# :ith the N'RC o# the Cou#t of Appeals. -n the ,ie: of the Cou#t% this is illo5ical an0 i4poses an unnecessa#1 bu#0en upon it. -n *ol7schel 'abo# Union% et al. ,. N'RC% et al.% ? on the settle0 p#e4ise that the Cu054ents of cou#ts an0 a:a#0s of Buasi=Cu0icial a5encies 4ust beco4e final at so4e 0efinite ti4e% this Cou#t #ule0 that the a:a#0s of ,olunta#1 a#bit#ato#s 0ete#4ine the #i5hts of pa#tiesE hence% thei# 0ecisions ha,e the sa4e le5al effect as Cu054ents of a cou#t. -n Oceanic Bic )i,ision 8..;9% et al. ,. Ro4e#o% et al.% " this Cou#t #ule0 that Fa ,olunta#1 a#bit#ato# b1 the natu#e of he# functions acts in a Buasi=Cu0icial capacit1.F Un0e# these #ulin5s% it follo:s that the ,olunta#1 a#bit#ato#% :hethe# actin5 solel1 o# in a panel% enCo1s in la: the status of a Buasi=Cu0icial a5enc1 but in0epen0ent of% an0 apa#t f#o4% the N'RC since his 0ecisions a#e not appealable to the latte#. 1 Section " of B.P. Bl5. 12"% as a4en0e0 b1 Republic Act No. D" 2% p#o,i0es that the Cou#t of Appeals shall eAe#cise3 AAA AAA AAA

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-t :ill thus be note0 that the Cu#is0iction confe##e0 b1 la: on a ,olunta#1 a#bit#ato# o# a panel of such a#bit#ato#s is Buite li4ite0 co4pa#e0 to the o#i5inal Cu#is0iction of the labo# a#bite# an0 the appellate Cu#is0iction of the National 'abo# Relations Co44ission 8N'RC9 fo# that 4atte#. < The state 2

8B9 EAclusi,e appellate Cu#is0iction o,e# all final Cu054ents% 0ecisions% #esolutions% o#0e#s o# a:a#0s of Re5ional T#ial Cou#ts an0 Buasi=Cu0icial a5encies% inst#u4entalities% boa#0s o# co44issions% inclu0in5 the Secu#ities an0 EAchan5e Co44ission% the E4plo1ees Co4pensation Co44ission an0 the Ci,il Se#,ice Co44ission% eAcept those fallin5 :ithin the appellate Cu#is0iction of the Sup#e4e Cou#t in acco#0ance :ith the Constitution% the 'abo# Co0e of the Philippines un0e# P#esi0ential )ec#ee

No. <<2% as a4en0e0% the p#o,isions of this Act% an0 of subpa#a5#aph 819 of the thi#0 pa#a5#aph an0 subpa#a5#aph 8<9 of the fou#th pa#a5#aph of Section 1D of the 2u0icia#1 Act of 1"<?. AAA AAA AAA

A fo#tio#i% the 0ecision o# a:a#0 of the ,olunta#1 a#bit#ato# o# panel of a#bit#ato#s shoul0 li7e:ise be appealable to the Cou#t of Appeals% in line :ith the p#oce0u#e outline0 in Re,ise0 A04inist#ati,e Ci#cula# No. 1="&% Cust li7e those of the Buasi=Cu0icial a5encies% boa#0s an0 co44issions enu4e#ate0 the#ein. This :oul0 be in fu#the#ance of% an0 consistent :ith% the o#i5inal pu#pose of Ci#cula# No. 1="1 to p#o,i0e a unifo#4 p#oce0u#e fo# the appellate #e,ie: of a0Cu0ications of all Buasi=Cu0icial entities 1? not eAp#essl1 eAcepte0 f#o4 the co,e#a5e of Sec. " of B.P. 12" b1 eithe# the Constitution o# anothe# statute. No# :ill it #un counte# to the le5islati,e inten04ent that 0ecisions of the N'RC be #e,ie:able 0i#ectl1 b1 the Sup#e4e Cou#t since% p#ecisel1% the cases :ithin the a0Cu0icati,e co4petence of the ,olunta#1 a#bit#ato# a#e eAclu0e0 f#o4 the Cu#is0iction of the N'RC o# the labo# a#bite#. -n the sa4e ,ein% it is :o#th 4entionin5 that un0e# Section 22 of Republic Act No. ?D$% also 7no:n as the A#bit#ation 'a:% a#bit#ation is 0ee4e0 a special p#ocee0in5 of :hich the cou#t specifie0 in the cont#act o# sub4ission% o# if none be specifie0% the Re5ional T#ial Cou#t fo# the p#o,ince o# cit1 in :hich one of the pa#ties #esi0es o# is 0oin5 business% o# in :hich the a#bit#ation is hel0% shall ha,e Cu#is0iction. A pa#t1 to the cont#o,e#s1 4a1% at an1 ti4e :ithin one 819 4onth afte# an a:a#0 is 4a0e% appl1 to the cou#t ha,in5 Cu#is0iction fo# an o#0e# confi#4in5 the a:a#0 an0 the cou#t 4ust 5#ant such o#0e# unless the a:a#0 is ,acate0% 4o0ifie0 o# co##ecte0. 1" -n effect% this eBuates the a:a#0 o# 0ecision of the ,olunta#1 a#bit#ato# :ith that of the #e5ional t#ial cou#t. ConseBuentl1% in a petition fo# ce#tio#a#i f#o4 that a:a#0 o# 0ecision% the Cou#t of Appeals 4ust be 0ee4e0 to ha,e concu##ent Cu#is0iction :ith the Sup#e4e Cou#t. As a 4atte# of polic1% this Cou#t shall hencefo#th #e4an0 to the Cou#t of Appeals petitions of this natu#e fo# p#ope# 0isposition. ACCOR)-NG'/% the Cou#t #esol,e0 to RE.ER this case to the Cou#t of Appeals. SO OR)ERE). Pa0illa% Re5ala0o% )a,i0e% 2#.% Bellosillo% Puno% *itu5% +apunan% Men0o6a% .#ancisco an0 @e#4osisi4a% 2#.% 22.% concu#. .eliciano% 2.% concu#s in the #esult. Na#,asa% C.2. an0 Melo% 2. a#e on lea,e.

Assu4in5 a#5uen0o that the ,olunta#1 a#bit#ato# o# the panel of ,olunta#1 a#bit#ato#s 4a1 not st#ictl1 be consi0e#e0 as a Buasi=Cu0icial a5enc1% boa#0 o# co44ission% still both he an0 the panel a#e co4p#ehen0e0 :ithin the concept of a FBuasi=Cu0icial inst#u4entalit1.F -t 4a1 e,en be state0 that it :as to 4eet the ,e#1 situation p#esente0 b1 the Buasi=Cu0icial functions of the ,olunta#1 a#bit#ato#s he#e% as :ell as the subseBuent a#bit#ato#Ga#bit#al t#ibunal ope#atin5 un0e# the Const#uction -n0ust#1 A#bit#ation Co44ission% 11 that the b#oa0e# te#4 Finst#u4entalitiesF :as pu#posel1 inclu0e0 in the abo,e=Buote0 p#o,ision.
An Finst#u4entalit1F is an1thin5 use0 as a 4eans o# a5enc1. 12 Thus% the te#4s 5o,e#n4ental Fa5enc1F o# Finst#u4entalit1F a#e s1non14ous in the sense that eithe# of the4 is a 4eans b1 :hich a 5o,e#n4ent acts% o# b1 :hich a ce#tain 5o,e#n4ent act o# function is pe#fo#4e0. 1! The :o#0 Finst#u4entalit1%F :ith #espect to a state% conte4plates an autho#it1 to :hich the state 0ele5ates 5o,e#n4ental po:e# fo# the pe#fo#4ance of a state function. 1< An in0i,i0ual pe#son% li7e an a04inist#ato# o# eAecuto#% is a Cu0icial inst#u4entalit1 in the settlin5 of an estate% 1& in the sa4e 4anne# that a sub=a5ent appointe0 b1 a ban7#uptc1 cou#t is an inst#u4entalit1 of the cou#t% 1$ an0 a t#ustee in ban7#uptc1 of a 0efunct co#po#ation is an inst#u4entalit1 of the state. 1D The ,olunta#1 a#bit#ato# no less pe#fo#4s a state function pu#suant to a 5o,e#n4ental po:e# 0ele5ate0 to hi4 un0e# the p#o,isions the#efo# in the 'abo# Co0e an0 he falls% the#efo#e% :ithin the conte4plation of the te#4 Finst#u4entalit1F in the afo#eBuote0 Sec. " of B.P. 12". The fact that his functions an0 po:e#s a#e p#o,i0e0 fo# in the 'abo# Co0e 0oes not place hi4 :ithin the eAceptions to sai0 Sec. " since he is a Buasi=Cu0icial inst#u4entalit1 as conte4plate0 the#ein. -t :ill be note0 that% althou5h the E4plo1ees Co4pensation Co44ission is also p#o,i0e0 fo# in the 'abo# Co0e% Ci#cula# No. 1="1% :hich is the fo#e#unne# of the p#esent Re,ise0 A04inist#ati,e Ci#cula# No. 1="&% lai0 0o:n the p#oce0u#e fo# the appealabilit1 of its 0ecisions to the Cou#t of Appeals un0e# the fo#e5oin5 #ationali6ation% an0 this :as late# a0opte0 b1 Republic Act No. D" 2 in a4en0in5 Sec. " of B.P. 12".

T@-R) )-*-S-ON H G.R. No. 1 2"D$% Octobe# 2&% 1""& I -RON AN) STEE' AUT@OR-T/% PET-T-ONER% *S. T@E COURT O. APPEA'S AN) MAR-A CR-ST-NA .ERT-'-(ER CORPORAT-ON% RESPON)ENTS. )EC-S-ON .E'-C-ANO% 2.3 Petitione# -#on an0 Steel Autho#it1 8F-SAF9 :as c#eate0 b1 P#esi0ential )ec#ee 8P.).9 No. 2D2 0ate0 " Au5ust 1"D! in o#0e#% 5ene#all1% to 0e,elop an0 p#o4ote the i#on an0 steel in0ust#1 in the Philippines. The obCecti,es of the -SA a#e spelle0 out in the follo:in5 te#4s3 FSec. 2. ObCecti,es. J The Autho#it1 shall ha,e the follo:in5 obCecti,es3 8a9 to st#en5then the i#on an0 steel in0ust#1 of the Philippines an0 to eApan0 the 0o4estic an0 eApo#t 4a#7ets fo# the p#o0ucts of the in0ust#1E 8b9 to p#o4ote the consoli0ation% inte5#ation an0 #ationali6ation of the in0ust#1 in o#0e# to inc#ease in0ust#1 capabilit1 an0 ,iabilit1 to se#,ice the 0o4estic 4a#7et an0 to co4pete in inte#national 4a#7etsE 8c9 to #ationali6e the 4a#7etin5 an0 0ist#ibution of steel p#o0ucts in o#0e# to achie,e a balance bet:een 0e4an0 an0 suppl1 of i#on an0 steel p#o0ucts fo# the count#1 an0 to ensu#e that in0ust#1 p#ices an0 p#ofits a#e at le,els that p#o,i0e a fai# balance bet:een the inte#ests of in,esto#s% consu4e#s supplie#s% an0 the public at la#5eE 809 to p#o4ote full utili6ation of the eAistin5 capacit1 of the in0ust#1% to 0iscou#a5e in,est4ent in eAcess capacit1% an0 in coo#0ination :ith app#op#iate 5o,e#n4ent a5encies to encou#a5e capital in,est4ent in p#io#it1 a#eas of the in0ust#1E 8e9 to assist the in0ust#1 in secu#in5 a0eBuate an0 lo:=cost supplies of #a: 4ate#ials an0 to #e0uce the eAcessi,e 0epen0ence of the count#1 on i4po#ts of i#on an0 steel.F The list of po:e#s an0 functions of the -SA inclu0e0 the follo:in53

FSec. <. Po:e#s an0 .unctions. J The autho#it1 shall ha,e the follo:in5 po:e#s an0 functions3 AAA AAA AAA

8C9 to initiate eAp#op#iation of lan0 #eBui#e0 fo# basic i#on an0 steel facilities fo# subseBuent #esale an0Go# lease to the co4panies in,ol,e0 if it is sho:n that such use of the State>s po:e# is necessa#1 to i4ple4ent the const#uction of capacit1 :hich is nee0e0 fo# the attain4ent of the obCecti,es of the Autho#it1E AAA 8-talics supplie09 P.). No. 2D2 initiall1 c#eate0 petitione# -SA fo# a te#4 of fi,e 8&9 1ea#s countin5 f#o4 " Au5ust 1"D!.H1I ;hen -SA>s o#i5inal te#4 eApi#e0 on 1 Octobe# 1"D?% its te#4 :as eAten0e0 fo# anothe# ten 81 9 1ea#s b1 EAecuti,e O#0e# No. &&& 0ate0 !1 Au5ust 1"D". The National Steel Co#po#ation 8FNSCF9 then a :holl1 o:ne0 subsi0ia#1 of the National )e,elop4ent Co#po#ation :hich is itself an entit1 :holl1 o:ne0 b1 the National Go,e#n4ent% e4ba#7e0 on an eApansion p#o5#a4 e4b#acin5% a4on5 othe# thin5s% the const#uction of an inte5#ate0 steel 4ill in -li5an Cit1. The const#uction of such a steel 4ill :as consi0e#e0 a p#io#it1 an0 4aCo# in0ust#ial p#oCect of the Go,e#n4ent. Pu#suant to the eApansion p#o5#a4 of the NSC% P#ocla4ation No. 22!" :as issue0 b1 the P#esi0ent of the Philippines on 1$ No,e4be# 1"?2 :ith0#a:in5 f#o4 sale o# settle4ent a la#5e t#act of public lan0 8totallin5 about ! .2& hecta#es in a#ea9 locate0 in -li5an Cit1% an0 #ese#,in5 that lan0 fo# the use an0 i44e0iate occupanc1 of NSC. Since ce#tain po#tions of the public lan0 subCect 4atte# of P#ocla4ation No. 22!" :e#e occupie0 b1 a non=ope#ational che4ical fe#tili6e# plant an0 #elate0 facilities o:ne0 b1 p#i,ate #espon0ent Ma#ia C#istina .e#tili6e# Co#po#ation 8FMC.CF9% 'ette# of -nst#uction 8'O-9 No. 12DD% also 0ate0 1$ No,e4be# 1"?2% :as issue0 0i#ectin5 the NSC to Fne5otiate :ith the o:ne#s of MC.C% fo# an0 on behalf of the Go,e#n4ent% fo# the co4pensation of MC.C>s p#esent occupanc1 #i5hts on the subCect lan0.F 'O- No. 12DD also 0i#ecte0 that shoul0 NSC an0 p#i,ate #espon0ent MC.C 4 AAA A A AF

fail to #each an a5#ee4ent :ithin a pe#io0 of siAt1 8$ 9 0a1s f#o4 the 0ate of 'O- No. 12DD% petitione# -SA :as to eAe#cise its po:e# of e4inent 0o4ain un0e# P.). No. 2D2 an0 to initiate eAp#op#iation p#ocee0in5s in #espect of occupanc1 #i5hts of p#i,ate #espon0ent MC.C #elatin5 to the subCect public lan0 as :ell as the plant itself an0 #elate0 facilities an0 to ce0e the sa4e to the NSC.H2I Ne5otiations bet:een NSC an0 p#i,ate #espon0ent MC.C 0i0 fail. Acco#0in5l1% on 1? Au5ust 1"?!% petitione# -SA co44ence0 e4inent 0o4ain p#ocee0in5s a5ainst p#i,ate #espon0ent MC.C in the Re5ional T#ial Cou#t% B#anch 1% of -li5an Cit1% p#a1in5 that it 8-SA9 be place0 in possession of the p#ope#t1 in,ol,e0 upon 0epositin5 in cou#t the a4ount of P1%D$ %D?".$" #ep#esentin5 ten pe#cent 81 K9 of the 0ecla#e0 4a#7et ,alues of that p#ope#t1. The Philippine National Ban7% as 4o#t5a5ee of the plant facilities an0 i4p#o,e4ents in,ol,e0 in the eAp#op#iation p#ocee0in5s% :as also i4plea0e0 as pa#t1=0efen0ant. On 1D Septe4be# 1"?!% a :#it of possession :as issue0 b1 the t#ial cou#t in fa,o# of -SA. -SA in tu#n place0 NSC in possession an0 cont#ol of the lan0 occupie0 b1 MC.C>s fe#tili6e# plant installation. The case p#ocee0e0 to t#ial. ;hile the t#ial :as on=5oin5% ho:e,e#% the statuto#1 eAistence of petitione# -SA eApi#e0 on 11 Au5ust 1"??. MC.C then file0 a 4otion to 0is4iss% conten0in5 that no ,ali0 Cu054ent coul0 be #en0e#e0 a5ainst -SA :hich ha0 cease0 to be a Cu#i0ical pe#son. Petitione# -SA file0 its opposition to this 4otion. -n an O#0e# 0ate0 " No,e4be# 1"??% the t#ial cou#t 5#ante0 MC.C>s 4otion to 0is4iss an0 0i0 0is4iss the case. The 0is4issal :as ancho#e0 on the p#o,ision of the Rules of Cou#t statin5 that Fonl1 natu#al o# Cu#i0ical pe#sons o# entities autho#i6e0 b1 la: 4a1 be pa#ties in a ci,il case.FH!I The t#ial cou#t also #efe##e0 to non=co4pliance b1 petitione# -SA :ith the #eBui#e4ents of Section 1$% Rule ! of the Rules of Cou#t.H<I Petitione# -SA 4o,e0 fo# #econsi0e#ation of the t#ial cou#t>s O#0e#% conten0in5 that 0espite the eApi#ation of its te#4% its Cu#i0ical eAistence continue0 until the :in0in5 up of its affai#s coul0 be co4plete0. -n the alte#nati,e% petitione# -SA u#5e0 that the Republic of the Philippines% bein5 the #eal pa#t1=in=inte#est% shoul0 be allo:e0 to be substitute0 fo# petitione# -SA. -n this connection% -SA #efe##e0 to a lette# f#o4 the Office of the 5

P#esi0ent 0ate0 2? Septe4be# 1"?? :hich especiall1 0i#ecte0 the Solicito# Gene#al to continue the eAp#op#iation case. The t#ial cou#t 0enie0 the 4otion fo# #econsi0e#ation% statin5% a4on5 othe# thin5s% that3 FThe p#ope#t1 to be eAp#op#iate0 is not fo# public use o# benefit HJI but fo# the use an0 benefit HJI of NSC% a 5o,e#n4ent cont#olle0 p#i,ate co#po#ation en5a5e0 in p#i,ate business an0 fo# p#ofit% speciall1 no: that the 5o,e#n4ent% acco#0in5 to ne:spape# #epo#ts% is offe#in5 fo# sale to the public its Hsha#es of stoc7I in the National Steel Co#po#ation in line :ith the p#onounce0 polic1 of the p#esent a04inist#ation to 0isen5a5e the 5o,e#n4ent f#o4 its p#i,ate business ,entu#es.FH&I 8B#ac7ets supplie09 Petitione# :ent on appeal to the Cou#t of Appeals. -n a )ecision 0ate0 ? Octobe# 1""1% the Cou#t of Appeals affi#4e0 the o#0e# of 0is4issal of the t#ial cou#t. The Cou#t of Appeals hel0 that petitione# -SA% Fa 5o,e#n4ent #e5ulato#1 a5enc1 eAe#cisin5 so,e#ei5n functions%F 0i0 not ha,e the sa4e #i5hts as an o#0ina#1 co#po#ation an0 that the -SA% unli7e co#po#ations o#5ani6e0 un0e# the Co#po#ation Co0e% :as not entitle0 to a pe#io0 fo# :in0in5 up its affai#s afte# eApi#ation of its le5all1 4an0ate0 te#4% :ith the #esult that upon eApi#ation of its te#4 on 11 Au5ust 1"?D% -SA :as Fabolishe0 an0 Hha0I no 4o#e le5al autho#it1 to pe#fo#4 5o,e#n4ental functions.F The Cou#t of Appeals :ent on to sa1 that the action fo# eAp#op#iation coul0 not p#ospe# because the basis fo# the p#ocee0in5s% the -SA>s eAe#cise of its 0ele5ate0 autho#it1 to eAp#op#iate% ha0 beco4e ineffecti,e as a #esult of the 0ele5ate>s 0issolution% an0 coul0 not be continue0 in the na4e of Republic of the Philippines% #ep#esente0 b1 the Solicito# Gene#al3 F-t is ou# consi0e#e0 opinion that un0e# the la:% the co4plaint cannot p#ospe#% an0 the#efo#e% has to be 0is4isse0 :ithout p#eCu0ice to the #efilin5 of a ne: co4plaint fo# eAp#op#iation if the Con5#ess sees it fit.F 8-talics supplie09 At the sa4e ti4e% ho:e,e#% the Cou#t of Appeals hel0 that it :as p#e4atu#e fo# the t#ial cou#t to ha,e #ule0 that the eAp#op#iation suit :as not fo# a public pu#pose% consi0e#in5 that the pa#ties ha0 not 1et #este0 thei# #especti,e cases.

-n this Petition fo# Re,ie:% the Solicito# Gene#al a#5ues that since -SA initiate0 an0 p#osecute0 the action fo# eAp#op#iation in its capacit1 as a5ent of the Republic of the Philippines% the Republic% as p#incipal of -SA% is entitle0 to be substitute0 an0 to be 4a0e a pa#t1=plaintiff afte# the a5ent -SA>s te#4 ha0 eApi#e0. P#i,ate #espon0ent MC.C% upon the othe# han0% a#5ues that the failu#e of Con5#ess to enact a la: fu#the# eAten0in5 the te#4 of -SA afte# 11 Au5ust 1"?? e,ince0 a Fclea# le5islati,e intent to te#4inate the Cu#i0ical eAistence of -SA%F an0 that the autho#i6ation issue0 b1 the Office of the P#esi0ent to the Solicito# Gene#al fo# continue0 p#osecution of the eAp#op#iation suit coul0 not p#e,ail o,e# such ne5ati,e intent. -t is also conten0e0 that the eAe#cise of the e4inent 0o4ain b1 -SA o# the Republic is i4p#ope#% since that po:e# :oul0 be eAe#cise0 Fnot on behalf of the National Go,e#n4ent but fo# the benefit of NSC.F The p#incipal issue :hich :e 4ust a00#ess in this case is :hethe# o# not the Republic of the Philippines is entitle0 to be substitute0 fo# -SA in ,ie: of the eApi#ation of -SA>s te#4. As :ill be 4a0e clea# belo:% this is #eall1 the onl1 issue :hich :e 4ust #esol,e at this ti4e. Rule !% Section 1 of the Rules of Cou#t specifies :ho 4a1 be pa#ties to a ci,il action3 FSection 1. ;ho Ma1 Be Pa#ties. J Onl1 natu#al o# Cu#i0ical pe#sons o# entities autho#i6e0 b1 la: 4a1 be pa#ties in a ci,il action.F Un0e# the abo,e Buote0 p#o,ision% it :ill be seen that those :ho can be pa#ties to a ci,il action 4a1 be b#oa0l1 cate5o#i6e0 into t:o 829 5#oups3 8a9 those :ho a#e #eco5ni6e0 as pe#sons un0e# the la: :hethe# natu#al% i.e.% biolo5ical pe#sons% on the one han0% o# Cu#i0ical pe#sons such as co#po#ations% on the othe# han0E an0 8b9 entities autho#i6e0 b1 la: to institute actions. EAa4ination of the statute :hich c#eate0 petitione# -SA sho:s that -SA falls un0e# cate5o#1 8b9 abo,e. P.). No. 2D2% as al#ea01 note0% contains eAp#ess autho#i6ation to -SA to co44ence eAp#op#iation p#ocee0in5s li7e those he#e in,ol,e03 6

FSection <. Po:e#s an0 .unctions. J follo:in5 po:e#s an0 functions3 AAA AAA

The Autho#it1 shall ha,e the AAA

8C9 to initiate eAp#op#iation of lan0 #eBui#e0 fo# basic i#on an0 steel facilities fo# subseBuent #esale an0Go# lease to the co4panies in,ol,e0 if it is sho:n that such use of the State>s po:e# is necessa#1 to i4ple4ent the const#uction of capacit1 :hich is nee0e0 fo# the attain4ent of the obCecti,es of the Autho#it1E AAA 8-talics supplie09 -t shoul0 also be note0 that the enablin5 statute of -SA eAp#essl1 autho#i6e0 it to ente# into ce#tain 7in0s of cont#acts Ffo# an0 in behalf of the Go,e#n4entF in the follo:in5 te#4s3 FA A A AAA AAA AAA A A AF

8C9 to ne5otiate% an0 :hen necessa#1% to ente# into cont#acts fo# an0 in behalf of the 5o,e#n4ent% fo# the bul7 pu#chase of 4ate#ials% supplies o# se#,ices fo# an1 secto#s in the in0ust#1% an0 to 4aintain in,ento#ies of such 4ate#ials in o#0e# to insu#e a continuous an0 a0eBuate suppl1 the#eof an0 the#eb1 #e0uce ope#atin5 costs of such secto#E AAA 8-talics supplie09 Clea#l1% -SA :as ,este0 :ith so4e of the po:e#s o# att#ibutes no#4all1 associate0 :ith Cu#i0ical pe#sonalit1. The#e is% ho:e,e#% no p#o,ision in P.). No. 2D2 #eco5ni6in5 -SA as possessin5 5ene#al o# co4p#ehensi,e Cu#i0ical pe#sonalit1 sepa#ate an0 0istinct f#o4 that of the Go,e#n4ent. The -SA in fact appea#s to the Cou#t to be a non=inco#po#ate0 a5enc1 o# inst#u4entalit1 of the Republic of the Philippines% o# 4o#e p#ecisel1 of the Go,e#n4ent of the Republic of the Philippines. -t is co44on 7no:le05e that othe# a5encies o# inst#u4entalities of the Go,e#n4ent of the Republic AAA AAAF

a#e cast in co#po#ate fo#4% that is to sa1% a#e inco#po#ate0 a5encies o# inst#u4entalities% so4eti4es :ith an0 at othe# ti4es :ithout capital stoc7% an0 acco#0in5l1 ,este0 :ith a Cu#i0ical pe#sonalit1 0istinct f#o4 the pe#sonalit1 of the Republic. A4on5 such inco#po#ate0 a5encies o# inst#u4entalities a#e3 National Po:e# Co#po#ationEH$I Philippine Po#ts Autho#it1EHDI National @ousin5 Autho#it1EH?I Philippine National Oil Co4pan1EH"I Philippine National Rail:a1sEH1 I Public Estates Autho#it1EH11I Philippine *i#5inia Tobacco A04inist#ationEH12I an0 so fo#th. -t is :o#th notin5 that the te#4 FAutho#it1F has been use0 to 0esi5nate both inco#po#ate0 an0 non=inco#po#ate0 a5encies o# inst#u4entalities of the Go,e#n4ent. ;e consi0e# that the -SA is p#ope#l1 #e5a#0e0 as an a5ent o# 0ele5ate of the Republic of the Philippines. The Republic itself is a bo01 co#po#ate an0 Cu#i0ical pe#son ,este0 :ith the full panopl1 of po:e#s an0 att#ibutes :hich a#e co4pen0iousl1 0esc#ibe0 as Fle5al pe#sonalit1.F The #ele,ant 0efinitions a#e foun0 in the A04inist#ati,e Co0e of 1"?D3 FSec. 2. Gene#al Te#4s )efine0. J Unless the specific :o#0s of the teAt% o# the conteAt as a :hole% o# a pa#ticula# statute% #eBui#e a 0iffe#ent 4eanin53 819 Go,e#n4ent of the Republic of the Philippines #efe#s to the co#po#ate 5o,e#n4ental entit1 th#ou5h :hich the functions of 5o,e#n4ent a#e eAe#cise0 th#ou5hout the Philippines% inclu0in5% sa,e as the cont#a#1 appea#s f#o4 the conteAt% the ,a#ious a#4s th#ou5h :hich political autho#it1 is 4a0e effecti,e in the Philippines% :hethe# pe#tainin5 to the autono4ous #e5ions% the p#o,incial% cit1% 4unicipal o# ba#an5a1 sub0i,isions o# othe# fo#4s of local 5o,e#n4ent. AAA AAA AAA

81 9 -nst#u4entalit1 #efe#s to an1 a5enc1 of the National Go,e#n4ent% not inte5#ate0 :ithin the 0epa#t4ent f#a4e:o#7% ,este0 :ith special functions o# Cu#is0iction b1 la:% en0o:e0 :ith so4e if not all co#po#ate po:e#s% a04iniste#in5 special fun0s% an0 enCo1in5 ope#ational autono41% usuall1 th#ou5h a cha#te#. This te#4 inclu0es #e5ulato#1 a5encies% cha#te#e0 institutions an0 5o,e#n4ent=o:ne0 o# cont#olle0 co#po#ations. AAA 8-talics supplie09 ;hen the statuto#1 te#4 of a non=inco#po#ate0 a5enc1 eApi#es% the po:e#s% 0uties an0 functions as :ell as the assets an0 liabilities of that a5enc1 #e,e#t bac7 to% an0 a#e #e=assu4e0 b1% the Republic of the Philippines% in the absence of special p#o,isions of la: specif1in5 so4e othe# 0isposition the#eof such as% e.5.% 0e,olution o# t#ans4ission of such po:e#s% 0uties% functions% etc. to so4e othe# i0entifie0 successo# a5enc1 o# inst#u4entalit1 of the Republic of the Philippines. ;hen the eApi#in5 a5enc1 is an inco#po#ate0 one% the conseBuences of such eApi#1 4ust be loo7e0 fo#% in the fi#st instance% in the cha#te# of that a5enc1 an0% b1 :a1 of supple4entation% in the p#o,isions of the Co#po#ation Co0e. Since% in the instant case% -SA is a non=inco#po#ate0 a5enc1 o# inst#u4entalit1 of the Republic% its po:e#s% 0uties% functions% assets an0 liabilities a#e p#ope#l1 #e5a#0e0 as fol0e0 bac7 into the Go,e#n4ent of the Republic of the Philippines an0 hence assu4e0 once a5ain b1 the Republic% no special statuto#1 p#o,ision ha,in5 been sho:n to ha,e 4an0ate0 succession the#eto b1 so4e othe# entit1 o# a5enc1 of the Republic. The p#oce0u#al i4plications of the #elationship bet:een an a5ent o# 0ele5ate of the Republic of the Philippines an0 the Republic itself a#e% at least in pa#t% spelle0 out in the Rules of Cou#t. The 5ene#al #ule is% of cou#se% that an action 4ust be p#osecute0 an0 0efen0e0 in the na4e of the #eal pa#t1 in inte#est. 8Rule !% Section 29 Petitione# -SA :as% at the co44ence4ent of the eAp#op#iation p#ocee0in5s% a #eal pa#t1 in inte#est% ha,in5 been eAplicitl1 autho#i6e0 b1 its enablin5 statute to institute eAp#op#iation p#ocee0in5s. The Rules of Cou#t at the sa4e ti4e eAp#essl1 #eco5ni6e the #ole of #ep#esentati,e pa#ties3 FSection !. Rep#esentati,e Pa#ties. J A t#ustee of an eAp#esse0 t#ust% a 5ua#0ian% an eAecuto# o# a04inist#ato#% o# a pa#t1 autho#i6e0 b1 statute 7 AAA A A AF

8<9 A5enc1 of the Go,e#n4ent #efe#s to an1 of the ,a#ious units of the Go,e#n4ent% inclu0in5 a 0epa#t4ent% bu#eau% office% inst#u4entalit1% o# 5o,e#n4ent=o:ne0 o# cont#olle0 co#po#ation% o# a local 5o,e#n4ent o# a 0istinct unit the#ein. AAA AAA AAA

4a1 sue o# be sue0 :ithout Coinin5 the pa#t1 fo# :hose benefit the action is p#esente0 o# 0efen0e0E but the cou#t 4a1% at an1 sta5e of the p#ocee0in5s% o#0e# such beneficia#1 to be 4a0e a pa#t1. A A A.F 8-talics supplie09 -n the instant case% -SA institute0 the eAp#op#iation p#ocee0in5s in its capacit1 as an a5ent o# 0ele5ate o# #ep#esentati,e of the Republic of the Philippines pu#suant to its autho#it1 un0e# P.). No. 2D2. The p#esent eAp#op#iation suit :as b#ou5ht on behalf of an0 fo# the benefit of the Republic as the p#incipal of -SA. Pa#a5#aph D of the co4plaint state03 FD. The Go,e#n4ent% th#u the plaintiff -SA% u#5entl1 nee0s the subCect pa#cels of lan0 fo# the const#uction an0 installation of i#on an0 steel 4anufactu#in5 facilities that a#e in0ispensable to the inte5#ation of the i#on an0 steel 4a7in5 in0ust#1 :hich is ,ital to the p#o4otion of public inte#est an0 :elfa#e.F 8-talics supplie09 The p#incipal o# the #eal pa#t1 in inte#est is thus the Republic of the Philippines an0 not the National Steel Co#po#ation% e,en thou5h the latte# 4a1 be an ulti4ate use# of the p#ope#ties in,ol,e0 shoul0 the con0e4nation suit be e,entuall1 successful. .#o4 the fo#e5oin5 p#e4ises% it follo:s that the Republic of the Philippines is entitle0 to be substitute0 in the eAp#op#iation p#ocee0in5s as pa#t1= plaintiff in lieu of -SA% the statuto#1 te#4 of -SA ha,in5 eApi#e0. Put a little 0iffe#entl1% the eApi#ation of -SA>s statuto#1 te#4 0i0 not b1 itself #eBui#e o# Custif1 the 0is4issal of the e4inent 0o4ain p#ocee0in5s. -t is also #ele,ant to note that the non=Coin0e# of the Republic :hich occu##e0 upon the eApi#ation of -SA>s statuto#1 te#4% :as not a 5#oun0 fo# 0is4issal of such p#ocee0in5s since a pa#t1 4a1 be 0#oppe0 o# a00e0 b1 o#0e# of the cou#t% on 4otion of an1 pa#t1 o# on the cou#t>s o:n initiati,e at an1 sta5e of the action an0 on such te#4s as a#e Cust.H1!I -n the instant case% the Republic has p#ecisel1 4o,e0 to ta7e o,e# the p#ocee0in5s as pa#t1=plaintiff. -n E.B. Ma#cha T#anspo#t Co4pan1% -nc. ,. -nte#4e0iate Appellate Cou#t% H1<I the Cou#t #eco5ni6e0 that the Republic 4a1 initiate o# pa#ticipate in actions in,ol,in5 its a5ents. The#e the Republic of the Philippines :as hel0 to be a p#ope# pa#t1 to sue fo# #eco,e#1 of possession of p#ope#t1 althou5h the F#ealF o# #e5iste#e0 o:ne# of the p#ope#t1 :as the Philippine Po#ts 8

Autho#it1% a 5o,e#n4ent a5enc1 ,este0 :ith a sepa#ate Cu#i0ical pe#sonalit1. The Cou#t sai03 F-t can be sai0 that in suin5 fo# the #eco,e#1 of the #entals% the Republic of the Philippines acte0 as p#incipal of the Philippine Po#ts Autho#it1% 0i#ectl1 eAe#cisin5 the co44ission it ha0 ea#lie# confe##e0 on the latte# as its a5ent. A A AFH1&I 8italics supplie09 -n E.B. Ma#cha% the Cou#t also st#esse0 that to #eBui#e the Republic to co44ence all o,e# a5ain anothe# p#ocee0in5% as the t#ial cou#t an0 Cou#t of Appeals ha0 #eBui#e0% :as to 5ene#ate un:a##ante0 0ela1 an0 c#eate nee0less #epetition of p#ocee0in5s3 FMo#e i4po#tantl1% as :e see it% 0is4issin5 the co4plaint on the 5#oun0 that the Republic of the Philippines is not the p#ope# pa#t1 :oul0 #esult in nee0less 0ela1 in the settle4ent of this 4atte# an0 also in 0e#o5ation of the polic1 a5ainst 4ultiplicit1 of suits. Such a 0ecision :oul0 #eBui#e the Philippine Po#ts Autho#it1 to #efile the ,e#1 sa4e co4plaint al#ea01 p#o,e0 b1 the Republic of the Philippines an0 b#in5 bac7 as it :e#e to sBua#e one.FH1$I 8-talics supplie09 As note0 ea#lie#% the Cou#t of Appeals 0ecline0 to pe#4it the substitution of the Republic of the Philippines fo# the -SA upon the 5#oun0 that the action fo# eAp#op#iation coul0 not p#ospe# because the basis fo# the p#ocee0in5s% the -SA>s eAe#cise of its 0ele5ate0 autho#it1 to eAp#op#iate% ha0 beco4e le5all1 ineffecti,e b1 #eason of the eApi#ation of the statuto#1 te#4 of the a5ent o# 0ele5ate% i.e.% -SA. Since% as :e ha,e hel0 abo,e% the po:e#s an0 functions of -SA ha,e #e,e#te0 to the Republic of the Philippines upon the te#4ination of the statuto#1 te#4 of -SA% the Buestion shoul0 be a00#esse0 :hethe# f#esh le5islati,e autho#it1 is necessa#1 befo#e the Republic of the Philippines 4a1 continue the eAp#op#iation p#ocee0in5s initiate0 b1 its o:n 0ele5ate o# a5ent. ;hile the po:e# of e4inent 0o4ain is% in p#inciple% ,este0 p#i4a#il1 in the le5islati,e 0epa#t4ent of the 5o,e#n4ent% :e belie,e an0 so hol0 that no ne: le5islati,e act is necessa#1 shoul0 the Republic 0eci0e% upon bein5 substitute0 fo# -SA% in fact to continue to p#osecute the eAp#op#iation p#ocee0in5s. .o# the le5islati,e autho#it1% a lon5 ti4e a5o% enacte0 a continuin5 o# stan0in5 0ele5ation of autho#it1 to the P#esi0ent of the Philippines to eAe#cise% o# cause the eAe#cise of% the po:e# of e4inent

0o4ain on behalf of the Go,e#n4ent of the Republic of the Philippines. The 1"1D Re,ise0 A04inist#ati,e Co0e% :hich :as in effect at the ti4e of the co44ence4ent of the p#esent eAp#op#iation p#ocee0in5s befo#e the -li5an Re5ional T#ial Cou#t% p#o,i0e0 that3 FSection $<. Pa#ticula# po:e#s an0 0uties of the P#esi0ent of the Philippines. J -n a00ition to his 5ene#al supe#,iso#1 autho#it1% the P#esi0ent of the Philippines shall ha,e such othe# specific po:e#s an0 0uties as a#e eAp#essl1 confe##e0 o# i4pose0 on hi4 b1 la:% an0 also% in pa#ticula#% the po:e#s an0 0uties set fo#th in this Chapte#. A4on5 such special po:e#s an0 0uties shall be3 AAA AAA AAA

p#esent eAp#op#iation suit. ;e fin0 this a#5u4ent 4uch too speculati,eE it #ests too 4uch upon si4ple silence on the pa#t of Con5#ess an0 casuall1 0is#e5a#0s the eAistence of Section 12 of the 1"?D A04inist#ati,e Co0e al#ea01 Buote0 abo,e. Othe# contentions a#e 4a0e b1 p#i,ate #espon0ent MC.C% such as% that the constitutional #eBui#e4ent of Fpublic useF o# Fpublic pu#poseF is not p#esent in the instant case% an0 that the in0ispensable ele4ent of Cust co4pensation is also absent. ;e a5#ee :ith the Cou#t of Appeals in this connection that these contentions% :hich :e#e a0opte0 an0 set out b1 the Re5ional T#ial Cou#t in its o#0e# of 0is4issal% a#e p#e4atu#e an0 a#e app#op#iatel1 a00#esse0 in the p#ocee0in5s befo#e the t#ial cou#t. Those p#ocee0in5s ha,e 1et to p#o0uce a 0ecision on the 4e#its% since t#ial :as still on 5oin5 at the ti4e the Re5ional T#ial Cou#t p#ecipitousl1 0is4isse0 the eAp#op#iation p#ocee0in5s. Mo#eo,e#% as a p#a54atic 4atte#% the Republic is% b1 such substitution as pa#t1=plaintiff% acco#0e0 an oppo#tunit1 to 0ete#4ine :hethe# o# not% o# to :hat eAtent% the p#ocee0in5s shoul0 be continue0 in ,ie: of all the subseBuent 0e,elop4ents in the i#on an0 steel secto# of the count#1 inclu0in5% thou5h not li4ite0 to% the pa#tial p#i,ati6ation of the NSC. ;@ERE.ORE% fo# all the fo#e5oin5% the )ecision of the Cou#t of Appeals 0ate0 ? Octobe# 1""1 to the eAtent that it affi#4e0 the t#ial cou#t>s o#0e# 0is4issin5 the eAp#op#iation p#ocee0in5s% is he#eb1 RE*ERSE) an0 SET AS-)E an0 the case is REMAN)E) to the cou#t a Buo :hich shall allo: the substitution of the Republic of the Philippines fo# petitione# -#on an0 Steel Autho#it1 an0 fo# fu#the# p#ocee0in5s consistent :ith this )ecision. No p#onounce4ent as to costs. SO OR)ERE).

8h9 To 0ete#4ine :hen it is necessa#1 o# a0,anta5eous to eAe#cise the #i5ht of e4inent 0o4ain in behalf of the Go,e#n4ent of the PhilippinesE an0 to 0i#ect the Sec#eta#1 of 2ustice% :he#e such act is 0ee4e0 a0,isable% to cause the con0e4nation p#ocee0in5s to be be5un in the cou#t ha,in5 p#ope# Cu#is0iction.F 8-talics supplie09 The Re,ise0 A04inist#ati,e Co0e of 1"?D cu##entl1 in fo#ce has substantiall1 #ep#o0uce0 the fo#e5oin5 p#o,ision in the follo:in5 te#4s3 FSec. 12. Po:e# of e4inent 0o4ain. J The P#esi0ent shall 0ete#4ine :hen it is necessa#1 o# a0,anta5eous to eAe#cise the po:e# of e4inent 0o4ain in behalf of the National Go,e#n4ent% an0 0i#ect the Solicito# Gene#al% :hene,e# he 0ee4s the action a0,isable% to institute eAp#op#iation p#ocee0in5s in the p#ope# cou#t.F 8-talics supplie09 -n the p#esent case% the P#esi0ent% eAe#cisin5 the po:e# 0ul1 0ele5ate0 un0e# both the 1"1D an0 1"?D Re,ise0 A04inist#ati,e Co0es in effect 4a0e a 0ete#4ination that it :as necessa#1 an0 a0,anta5eous to eAe#cise the po:e# of e4inent 0o4ain in behalf of the Go,e#n4ent of the Republic an0 acco#0in5l1 0i#ecte0 the Solicito# Gene#al to p#ocee0 :ith the suit.H1DI -t is a#5ue0 b1 p#i,ate #espon0ent MC.C that% because Con5#ess afte# beco4in5 once 4o#e the 0eposito#1 of p#i4a#1 le5islati,e po:e#% ha0 not enacte0 a statute eAten0in5 the te#4 of -SA% such non=enact4ent 4ust be 0ee4e0 a 4anifestation of a le5islati,e 0esi5n to 0iscontinue o# abo#t the 9

Ro4e#o% Melo% *itu5% an0 Pan5aniban% 22.% concu#.

SECON) )-*-S-ON HG.R. No. 1<&"D2. Ma#ch 2!% 2

<I

B.P. 22 Mo0el A=Sociali6e0 @ousin5 8p. "$% Reco#0s9% :ith se,e#al con0itions fo# its 0e,elop4ent. Th#ee 8!9 0a1s the#eafte# o# on 2ul1 ?% 1""1% #espon0ent 2ASARENO% allo:e0G5#ante0 the le,elin5Gea#th=4o,in5 ope#ations of the 0e,elop4ent p#oCect of the a#ea subCect to ce#tain con0itions. On No,e4be# 1?% 1""1% then @'URB Co44issione# AMA)O B. )E'OR-A issue0 Ce#tificate of Re5ist#ation No. "1=11= &D$ in fa,o# of C@S% :ith 'icense to Sell No. "1=11= &"2 fo# the 1% D lotsGunits in the sub0i,ision. E,entuall1% on )ece4be# 1 % 1""1% #espon0ent PO''-SCO issue0 S4all Scale Minin5 Pe#4it 8SSMP9 No. -*=!1$ to PhilCas to eAt#act an0 #e4o,e 1 % cu. 4ete#s of fillin5 4ate#ials f#o4 the a#ea :he#e the C@S is locate0. The#eafte#% o# on 2anua#1 12% 1""<% PhilCas applie0 fo# a S4all Scale Minin5 Pe#4it 8SSMP9 un0e# P.). 1?"" :ith the Ri6al P#o,incial Go,e#n4ent to eAt#act an0 #e4o,e & % 4et#ic tons of fillin5 4ate#ials pe# annu4 on C@SN 2.? hecta#es. Thus% on 2anua#1 1D% 1""<% #espon0ent MAGNO% info#4e0 E'-E(ER -. RO)R-GUE( of PhilCas that C@S is :ithin the E-S S1ste4 an0 as such 4ust secu#e ECC f#o4 the )ENR. PhilCas :as acco#0in5l1 info#4e0 of the 4atte# such that it applie0 fo# the issuance of ECC f#o4 the )ENR=Re5ion -*% on .eb#ua#1 !% 1""<. On Ma#ch 12% 1""<% an -nspection Repo#t alle5e0l1 p#epa#e0 b1 #espon0ent BA'-CAS% atteste0 b1 #espon0ent RUTAMU-O an0 app#o,e0 b1 #espon0ent TO'ENT-NO #e3 fiel0 e,aluation to the issuance of ECC% :as sub4itte0. ConseBuentl1% on Ap#il 2?% 1""<% upon #eco44en0ations of #espon0ent TO'ENT-NO% PhilCasN application fo# ECC :as app#o,e0 b1 #espon0ent PR-NC-PE% then Re5ional EAecuti,e )i#ecto#% )ENR un0e# ECC=1!D=R1= 212="<. A Minin5 .iel0 Repo#t fo# SSMP 0ate0 Ma1 1 % 1""< :as sub4itte0 pu#suant to the inspection #epo#t p#epa#e0 b1 #espon0ents CA/ETANO% .E'-C-ANO% @-'A)O an0 BURGOS% base0 on thei# inspection con0ucte0 10

-GNAC-A BA'-CAS% petitione#% ,s. .ACT=.-N)-NG L -NTE''-GENCE BUREAU 8..-B9% O..-CE O. T@E OMBU)SMAN% #espon0ent. )EC-S-ON MU-SUMB-NG% 2.3 This petition fo# #e,ie: on ce#tio#a#i assails the Cou#t of AppealsN 0ecisionH1I 0ate0 Au5ust 2&% 2 an0 #esolutionH2I of No,e4be# 1!% 2 in CA=G.R. SP No. &$!?$% :hich affi#4e0 the O4bu0s4anNs 0ecisionH!I 0is4issin5 petitione# f#o4 5o,e#n4ent se#,ice fo# 5#oss ne5lect of 0ut1 in connection :ith the t#a5e01 at the Che##1 @ills Sub0i,ision in Antipolo Cit1 on Au5ust !% 1""". The antece0ent facts as su44a#i6e0 in the O4bu0s4anNs 0ecision a#e as follo:s3 Base0 on the e,i0ence a00uce0 b1 the co4plainant% the follo:in5 is the ch#onolo5ical se#ies of e,ents :hich le0 to the 0e,elop4ent of the C@S 8Che##1 @ills Sub0i,ision93 Au5ust 2?% 1"" O PhilCas Co#po#ation% :hose p#i4a#1 pu#poses% a4on5 othe#s a#e3 to o:n% 0e,elop% sub0i,i0e% 4a#7et an0 p#o,i0e lo:=cost housin5 fo# the poo#% :as #e5iste#e0 :ith the Secu#ities an0 EAchan5e Co44ission 8SEC9. .eb#ua#1 1"% 1""1 O then Cit1 Ma1o# )aniel S. Ga#cia% en0o#se0 to the @ousin5 an0 'an0 Use Re5ulato#1 Boa#0 8@'URB9 the p#opose0 C@S. The#eafte#% o# on D Ma#ch 1""1% base0 on the fa,o#able #eco44en0ations of Ma1o# Ga#cia% #espon0ent TAN% issue0 the P#eli4ina#1 App#o,al an0 'ocational Clea#ance 8PA'C9 fo# the 0e,elop4ent of C@S. On 2ul1 &% 1""1% then @'URB Co44issione# #espon0ent TUNGPA'AN issue0 )e,elop4ent Pe#4it No. "1= 21$ fo# Plan0 0e,elop4ent onl1Q fo# the enti#e lan0 a#ea of 12.1 !< hecta#es co,e#e0 b1 TCT No. !& ?! 8no: TCT 2 ??!D9 an0 :ith 1% ! saleable lotsGunits :ith p#oCect classification

on Ap#il 2& to 2"% 1""<. The #epo#t #eco44en0e0% a4on5 othe#s% that the p#opose0 eAt#action of 4ate#ials :oul0 pose no a0,e#se effect to the en,i#on4ent. Reco#0s fu#the# 0isclose0 that on Au5ust 1 % 1""<% #espon0ent BA'-CAS 4onito#e0 the i4ple4entation of the C@S P#oCect )e,elop4ent to chec7 co4pliance :ith the te#4s an0 con0itions in the ECC. A5ain% on Au5ust 2!% 1""&% she con0ucte0 anothe# 4onito#in5 on the p#oCect fo# the sa4e pu#pose. -n both instances% she note0 that the p#oCect :as still in the const#uction sta5e hence% co4pliance :ith the stipulate0 con0itions coul0 not be full1 assesse0% an0 the#efo#e% a follo:=up 4onito#in5 is p#ope#. -t appea#e0 f#o4 the #eco#0s that this Au5ust 2!% 1""& 4onito#in5 inspection :as the last one con0ucte0 b1 the )ENR. On Septe4be# 2<% 1""<% GO*. CAS-M-RO -. /NARES% 2R.% app#o,e0 the SSMP applie0 fo# b1 PhilCas un0e# SSMP No. R('= 12% allo:in5 PhilCas to eAt#act an0 #e4o,e & % 4et#ic tons of fillin5 4ate#ials f#o4 the a#ea fo# a pe#io0 of t:o 829 1ea#s f#o4 0ate of its issue until Septe4be# $% 1""$.H<I -44e0iatel1 afte# the t#a5ic inci0ent on Au5ust !% 1"""% a fact=fin0in5 in,esti5ation :as con0ucte0 b1 the Office of the O4bu0s4an th#ou5h its .act=.in0in5 an0 -ntelli5ence Bu#eau 8..-B9% :hich 0ul1 file0 an a04inist#ati,e co4plaint :ith the Office of the O4bu0s4an a5ainst se,e#al officials of the @ousin5 an0 'an0 Use Re5ulato#1 Boa#0 8@'URB9% )epa#t4ent of En,i#on4ent an0 Natu#al Resou#ces 8)ENR9% an0 the local 5o,e#n4ent of Antipolo. The cha#5e a5ainst petitione# in,ol,e0 a suppose0 failu#e on he# pa#t to 4onito# an0 inspect the 0e,elop4ent of Che##1 @ills Sub0i,ision% :hich :as assu4e0 to be he# 0ut1 as )ENR senio# en,i#on4ental 4ana5e4ent specialist assi5ne0 in the p#o,ince of Ri6al. .o# he# pa#t% petitione# belie0 alle5ations that 4onito#in5 :as not con0ucte0% clai4in5 that she 4onito#e0 the 0e,elop4ent of Che##1 @ills Sub0i,ision as e,i0ence0 b1 th#ee 8!9 4onito#in5 #epo#ts 0ate0 Ma#ch 12% 1""<% Au5ust 1 % 1""< an0 Au5ust 2!% 1""&. She a,e##e0 that she also con0ucte0 subseBuent co4pliance 4onito#in5 of the te#4s an0 con0itions of PhilCasN En,i#on4ental Co4pliance Ce#tificate 8ECC9 on Ma1 1"% 1""D an0 note0 no ,iolation the#eon. She fu#the# clai4e0 5oo0 faith an0 eAe#cise of 0ue 0ili5ence% insistin5 that the t#a5e01 :as a fo#tuitous e,ent. 11

She #easone0 that the collapse 0i0 not occu# in Che##1 @ills% but in the a0Cacent 4ountain easte#n si0e of the sub0i,ision. On No,e4be# 1&% 1"""% the Office of the O4bu0s4an #en0e#e0 a 0ecision i4posin5 upon petitione# the sup#e4e penalt1 of 0is4issal f#o4 office fo# 5#oss ne5lect of 0ut1 fin0in53 RESPON)ENT BA'-CAS Reco#0s sho: that she 4onito#e0 an0 inspecte0 the C@S HChe##1 @ills Sub0i,isionI onl1 th#ice 8!9% to :it3 1. -nspection Repo#t 0ate0 12 Ma#ch 1""< 2. Monito#in5 Repo#t 0ate0 1 Au5ust 1""< !. Monito#in5 Repo#t 0ate0 2! Au5ust 1""& *e#il1% :ith this scant f#eBuenc1% ho: can #espon0ent Balicas s:eepin5l1 clai4 that the#e :as no ,iolation of ECC co4pliance an0 that she ha0 0one :hat is necessa#1 in acco#0ance :ith the #e5ula# pe#fo#4ance of he# 0uties. She he#self #eco5ni6e0 the fact that the Pcollapse0 a#ea is not the sub0i,ision in Buestion but the a0Cacent 4ountain easte#n si0e of the C@S.Q -t is incu4bent upon he# to establish the sa4e in he# 4onito#in5 an0 inspection #epo#ts an0 4a7e obCecti,e #eco44en0ations #e3 its possible a0,e#se effect to the en,i#on4ent an0 to the #esi0ents of the C@S an0 nea#b1 a#eas. @e# 0efense that the position of the C@S sho:s the i4possibilit1 of chec7in5 the :oul0=be a0,e#se effect clea#l1 establishe0 he# inco4petence. No eApe#t 4in0 is nee0e0 to 7no: that 4ountains cause lan0sli0e an0 e#osion. Che##1 @ills Sub0i,ision is a li,in5 :itness to this.H&I Petitione# seasonabl1 file0 a petition fo# #e,ie: of the O4bu0s4anNs 0ecision :ith the Cou#t of Appeals. -n its 0ecision 0ate0 Au5ust 2&% 2 % the Cou#t of Appeals 0is4isse0 the petition fo# lac7 of 4e#it an0 affi#4e0 the appeale0 0ecision. -t foun0 that the lan0sli0e :as a p#e,entable occu##ence an0 that petitione# :as 5uilt1 of 5#oss ne5li5ence in failin5 to closel1 4onito# PhilCasN co4pliance :ith the con0itions of the ECC 5i,en the 7no:n inhe#ent instabilit1 of the 5#oun0 :he#e the sub0i,ision :as

0e,elope0. The appellate cou#t li7e:ise 0enie0 petitione#Ns 4otion fo# #econsi0e#ation in its #esolution 0ate0 No,e4be# 1!% 2 . Petitione# no: co4es to this Cou#t fo# #e,ie: on ce#tio#a#i% un0e# Rule <& of the Rules of Ci,il P#oce0u#e% of the appellate cou#tNs 0ecision. She alle5es that the Cou#t of Appeals co44itte0 se#ious e##o#s of la: in affi#4in5 the O4bu0s4anNs conclusion that3 1 The#e :as 5#oss ne5li5ence on the pa#t of petitione# Balicas in the pe#fo#4ance of he# official 0uties as Senio# En,i#on4ental Mana5e4ent Specialist 8SEMS9 of the P#o,incial En,i#on4ent an0 Natu#al Resou#ces Office 8PENRO9 P#o,ince of Ri6al% )ENR Re5ion -*E an0 the alle5e0 5#oss ne5lect of 0ut1 of petitione# :a##ante0 the i4position of the eAt#e4e penalt1 of 0is4issal f#o4 the se#,ice. 2. The lan0sli0e :hich cause0 the 0eath of se,e#al #esi0ents of the sub0i,ision an0 the 0est#uction of p#ope#t1 is not a fo#tuitous e,ent an0 the#efo#e p#e,entible.H$I The 4ain issues a#e :hethe# o# not the Cou#t of Appeals co44itte0 se#ious e##o#s of la: in3 819 hol0in5 petitione# 5uilt1 of 5#oss ne5lect of 0ut1 an0 829 i4posin5 upon he# the eAt#e4e penalt1 of 0is4issal f#o4 office. -n o#0e# to asce#tain if the#e ha0 been 5#oss ne5lect of 0ut1% :e ha,e to loo7 at the la:full1 p#esc#ibe0 0uties of petitione#. Unfo#tunatel1% )ENR #e5ulations a#e silent on the specific 0uties of a senio# en,i#on4ental 4ana5e4ent specialist. -nte#nal #e5ulations 4e#el1 spea7 of the functions of the P#o,incial En,i#on4ent an0 Natu#al Resou#ces Office 8PENRO9 to :hich petitione# 0i#ectl1 #epo#ts. Nonetheless% petitione# #elies on a lette#HDI 0ate0 )ece4be# 1!% 1""" f#o4 the chief of pe#sonnel% )ENR Re5ion -*% :hich 0efines the 0uties of a senio# en,i#on4ental 4ana5e4ent specialist as follo:s3 1. Con0ucts in,esti5ation of pollution sou#ces o# co4plaintsE

!. Con0ucts follo:=up inspection of const#uction of pollution abate4entG:o#7 an0 st#uctu#es to o,e#see co4pliance :ith app#o,e0 plans an0 specificationsE <. Reco44en0s #e4e0ial 4easu#es fo# the p#e,ention% abate4ent an0 cont#ol of pollutionE &. P#epa#es technical #epo#ts on pollution in,esti5ation an0 #elate0 acti,itiesE an0 $. Pe#fo#4s #elate0 :o#7 as assi5ne0. -t is #ea0il1 appa#ent that no 4onito#in5 0ut1 :hatsoe,e# is 4entione0 in the sai0 lette#. The PENRO% on the othe# han0% is 4an0ate0 to3 1. con0uct su#,eillance an0 inspection of pollution sou#ces an0 cont#ol facilities an0 un0e#ta7eGinitiate 4easu#es #elati,e to pollution=#elate0 co4plaints of the 5ene#al public fo# app#op#iate #efe##al to the #e5ional officeE 2. co44ent on the p#oCect 0esc#iption% 0ete#4ine if the p#oCect fall :ithin the En,i#on4ental -4pact State4ent 8E-S9 S1ste4H?I an0 sub4it the sa4e to the #e5ional officeE an0 !. i4ple4ent p#o5#a4s an0 p#oCects #elate0 to en,i#on4ental 4ana5e4ent :ithin the PENRO.H"I -n a00ition% the PENRO is li7e:ise tas7e0 to 4onito# the p#oCect p#oponentNs co4pliance :ith the con0itions stipulate0 in the ECC% :ith suppo#t f#o4 the )ENR #e5ional office an0 the En,i#on4ental Mana5e4ent Bu#eau.H1 I The p#i4a#1 pu#pose of co4pliance 4onito#in5 is to ensu#e the Cu0icious i4ple4entation of soun0 an0 stan0a#0 en,i#on4ental Bualit1 0u#in5 the 0e,elop4ent sta5e of a pa#ticula# p#oCect. Specificall1% it ai4s to3 1. 4onito# p#oCect co4pliance :ith the con0itions set in the ECCE

2. Re,ie:HsI plans an0 specifications of p#oposes 8sic9 o# eAistin5 t#eat4ent plants an0 pollution abate4ent st#uctu#es an0 0e,ices to 0ete#4ine thei# efficienc1 an0 suitabilit1 fo# the 7in0 of pollutants to be #e4o,e0 an0 to #eco44en0 issuance o# 0enial of pe#4itsE 12

2. 4onito# co4pliance :ith the En,i#on4ental Mana5e4ent Plan 8EMP9 an0 applicable la:s% #ules an0 #e5ulationsE an0

!. p#o,i0e a basis fo# ti4el1 0ecision=4a7in5 an0 effecti,e plannin5 an0 4ana5e4ent of en,i#on4ental 4easu#es th#ou5h the 4onito#in5 of actual p#oCect i4pacts ,is=R=,is p#e0icte0 i4pacts in the E-S.H11I Base0 on the fo#e5oin5% the 4onito#in5 0uties of the PENRO 4ainl1 0eal :ith b#oa0 en,i#on4ental conce#ns% pa#ticula#l1 pollution abate4ent. This 5ene#al 4onito#in5 0ut1 is applicable to all t1pes of ph1sical 0e,elop4ents that 4a1 a0,e#sel1 i4pact on the en,i#on4ent% :hethe# housin5 p#oCects% in0ust#ial sites% #ec#eational facilities% o# scientific un0e#ta7in5s. @o:e,e#% a 4o#e specific 4onito#in5 0ut1 is i4pose0 on the @'URB as the sole #e5ulato#1 bo01 fo# housin5 an0 lan0 0e,elop4ent. -t is 4an0ate0 to encou#a5e 5#eate# p#i,ate secto# pa#ticipation in lo:=cost housin5 th#ou5h 819 libe#ali6ation of 0e,elop4ent stan0a#0s% 829 si4plification of #e5ulations an0 8!9 0ecent#ali6ation of app#o,als fo# pe#4its an0 licenses.H12I P.). No. 1&?$H1!I p#esc#ibes the follo:in5 0uties on the @'URB 8then Minist#1 of @u4an Settle4ents9 in connection :ith en,i#on4entall1 c#itical p#oCects #eBui#in5 an ECC3 SECT-ON <. P#esi0ential P#ocla4ation of En,i#on4entall1 C#itical A#eas an0 P#oCects. O The P#esi0ent of the Philippines 4a1% on his o:n initiati,e o# upon #eco44en0ation of the National En,i#on4ent P#otection Council% b1 p#ocla4ation 0ecla#e ce#tain p#oCects% un0e#ta7in5s o# a#eas in the count#1 as en,i#on4entall1 c#itical. No pe#son% pa#tne#ship o# co#po#ation shall un0e#ta7e o# ope#ate an1 such 0ecla#e0 en,i#on4entall1 c#itical p#oCect o# a#ea :ithout fi#st secu#in5 an En,i#on4ental Co4pliance Ce#tificate issue0 b1 the P#esi0ent o# his 0ul1 autho#i6e0 #ep#esentati,e. .o# the p#ope# 4ana5e4ent of sai0 c#itical p#oCect o# a#ea% the P#esi0ent 4a1 b1 his p#ocla4ation #eo#5ani6e such 5o,e#n4ent offices% a5encies% institutions% co#po#ations o# inst#u4entalities inclu0in5 the #e=ali5n4ent of 5o,e#n4ent pe#sonnel% an0 thei# specific functions an0 #esponsibilities. .o# the sa4e pu#pose as abo,e% the Minist#1 of @u4an Settle4ents Hno: @'URBI shall3 8a9 p#epa#e the p#ope# lan0 o# :ate# use patte#n fo# sai0 c#itical p#oCect8s9 o# a#ea8s9E 8b9 establish a4bient en,i#on4ental Bualit1 stan0a#0sE 8c9 0e,elop a p#o5#a4 of en,i#on4ental enhance4ent o# p#otecti,e 4easu#es a5ainst cala4itous facto#s such as ea#thBua7e% floo0s% :ate# e#osion an0 othe#sE an0 809 pe#fo#4 such othe# functions as 4a1 be 0i#ecte0 b1 the P#esi0ent f#o4 ti4e to ti4e. 8E4phasis ou#s.9 13

The le5al 0ut1 to 4onito# housin5 p#oCects% li7e the Che##1 @ills Sub0i,ision% a5ainst cala4ities such as lan0sli0es 0ue to continuous #ain% is clea#l1 place0 on the @'URB% not on the petitione# as PENRO senio# en,i#on4ental 4ana5e4ent specialist. -n fact% the la: i4poses no clea# an0 0i#ect 0ut1 on petitione# to pe#fo#4 such na##o:l1 0efine0 4onito#in5 function. -n the #elate0 case of P#incipe ,. .act=.in0in5 an0 -ntelli5ence Bu#eau%H1<I this Cou#t foun0 Antonio P#incipe% #e5ional eAecuti,e 0i#ecto# fo# )ENR Re5ion -* :ho app#o,e0 PhilCasN application fo# ECC% not liable fo# 5#oss ne5lect of 0ut1. The Cou#t #e,e#se0 the 0ecision of the Cou#t of Appeals an0 the#eb1 annulle0 the 0ecision of the O4bu0s4an in OMB=A)M= "= $$1% 0ate0 )ece4be# 1% 1"""% 0is4issin5 P#incipe f#o4 the 5o,e#n4ent se#,ice. ;e o#0e#e0 his #einstate4ent :ith bac7 pa1 an0 :ithout loss of senio#it1.H1&I The #ationale fo# ou# 0ecision in P#incipe bea#s #eite#ation3 the #esponsibilit1 of 4onito#in5 housin5 an0 lan0 0e,elop4ent p#oCects is not lo05e0 :ith the )ENR% but :ith the @'URB as the sole #e5ulato#1 bo01 fo# housin5 an0 lan0 0e,elop4ent. Thus% :e 4ust st#ess that :e fin0 no le5al basis to hol0 petitione#% :ho is an office# of )ENR% liable fo# 5#oss ne5lect of the 0ut1 pe#tainin5 to anothe# a5enc1% the @'URB. -t :as 5#a,e e##o# fo# the appellate cou#t to sustain the O4bu0s4anNs #ulin5 that she shoul0 be 0is4isse0 f#o4 the se#,ice. The #einstate4ent of petitione# is clea#l1 calle0 fo#. ;@ERE.ORE% the petition is he#eb1 GRANTE). The Cou#t of AppealsN 0ecision affi#4in5 the O4bu0s4anNs 0is4issal of petitione# -GNAC-A BA'-CAS f#o4 office is RE*ERSE) an0 SET AS-)E% an0 petitione#Ns RE-NSTATEMENT to he# position :ith bac7 pa1 an0 :ithout loss of senio#it1 #i5hts is he#eb1 o#0e#e0. SO OR)ERE). Puno% 8Chai#4an9% Aust#ia=Ma#tine6% CalleCo% S#.% an0 Tin5a% 22.% concu#.

.-RST )-*-S-ON H G.R. No. ?$$"&% Septe4be# !% 1""2 I MAR-A E'ENA MA'AGA% )O-NG BUS-NESS UN)ER T@E NAME B.E. CONSTRUCT-ONE 2OS-E'EEN NA2ARRO% )O-NG BUS-NESS UN)ER T@E NAME BEST BU-'T CONSTRUCT-ONE 2OSE N. OCCESA% )O-NG BUS-NESS UN)ER T@E NAME T@E .-RM O. 2OSE N. OCCESAE AN) T@E -'O-'O BU-')ERS CORPORAT-ON% PET-T-ONERS% VS. MANUE' R. PENAC@OS% 2R.% A'.RE)O MATANGGA% ENR-CO T-CAR AN) TERES-TA *-''ANUE*A% -N T@E-R RESPECT-*E CAPAC-T-ES AS C@A-RMAN AN) MEMBERS O. T@E PRE=MUA'-.-CAT-ON B-)S AN) A;AR)S COMM-TTEE 8PBAC9 = BEN-GNO PAN-STANTE% -N @-S CAPAC-T/ AS PRES-)ENT O. -'O-'O STATE CO''EGE O. .-S@ER-ES% AS ;E'' AS -N T@E-R RESPECT-*E PERSONA' CAPAC-T-ESE AN) @ON. 'O)R-G-O '. 'EBAMU-N% RESPON)ENTS. )EC-S-ON CRU(% 2.3 This cont#o,e#s1 in,ol,es the eAtent an0 applicabilit1 of P.). 1?1?% :hich p#ohibits an1 cou#t f#o4 issuin5 inCunctions in cases in,ol,in5 inf#ast#uctu#e p#oCects of the 5o,e#n4ent. The facts a#e not 0ispute0.

sub4itte0 afte# the cut=off ti4e of ten o>cloc7 in the 4o#nin5 of )ece4be# 2% 1"??. On )ece4be# 12% 1"??% the petitione#s file0 a co4plaint :ith the Re5ional T#ial Cou#t of -loilo a5ainst the chai#4an an0 4e4be#s of PBAC in thei# official an0 pe#sonal capacities. The plaintiffs clai4e0 that althou5h the1 ha0 sub4itte0 thei# PRE=C1 on ti4e% the PBAC #efuse0 :ithout Cust cause to accept the4. As a #esult% the1 :e#e not inclu0e0 in the list of p#e= Bualifie0 bi00e#s% coul0 not secu#e the nee0e0 plans an0 othe# 0ocu4ents% an0 :e#e unable to pa#ticipate in the sche0ule0 bi00in5. -n thei# p#a1e#% the1 sou5ht the #esettin5 of the )ece4be# 12% 1"?? bi00in5 an0 the acceptance of thei# PRE=C1 0ocu4ents. The1 also as7e0 that if the bi00in5 ha0 al#ea01 been con0ucte0% the 0efen0ants be 0i#ecte0 not to a:a#0 the p#oCect pen0in5 #esolution of thei# co4plaint. On the sa4e 0ate% 2u05e 'o0#i5io '. 'ebaBuin issue0 a #est#ainin5 o#0e# p#ohibitin5 PBAC f#o4 con0uctin5 the bi00in5 an0 a:a#0in5 the p#oCect.H2I On )ece4be# 1$% 1"??% the 0efen0ants file0 a 4otion to lift the #est#ainin5 o#0e# on the 5#oun0 that the cou#t :as p#ohibite0 f#o4 issuin5 #est#ainin5 o#0e#s% p#eli4ina#1 inCunctions an0 p#eli4ina#1 4an0ato#1 inCunctions b1 P.). 1?1?. The 0ec#ee #ea0s pe#tinentl1 as follo:s3

The -loilo State Colle5e of .ishe#ies 8hencefo#th -SCO.9 th#ou5h its P#e= Bualification% Bi0s an0 A:a#0s Co44ittee 8hencefo#th PBAC9 cause0 the publication in the No,e4be# 2&% 2$% 2?% 1"?? issues of the ;este#n *isa1as )ail1 an -n,itation to Bi0 fo# the const#uction of a Mic#o 'abo#ato#1 Buil0in5 at -SCO.. The notice announce0 that the last 0a1 fo# the sub4ission of p#e=Bualification #eBui#e4ents 8PRE C=19T :as )ece4be# 2% 1"??% an0 that the bi0s :oul0 be #ecei,e0 an0 opene0 on )ece4be# 12% 1"??% at ! o>cloc7 in the afte#noon.H1I Petitione#s Ma#ia Elena Mala5a an0 2osieleen NaCa##o% #especti,el1 0oin5 business un0e# the na4e of B.E. Const#uction an0 Best Built Const#uction% sub4itte0 thei# p#e=Bualification 0ocu4ents at t:o o>cloc7 in the afte#noon of )ece4be# 2% 1"??. Petitione# 2ose OcceUa sub4itte0 his o:n PRE=C1 on )ece4be# &% 1"??. All th#ee of the4 :e#e not allo:e0 to pa#ticipate in the bi00in5 because thei# 0ocu4ents :e#e consi0e#e0 late% ha,in5 been 14

Section 1. No Cou#t in the Philippines shall ha,e Cu#is0iction to issue an1 #est#ainin5 o#0e#% p#eli4ina#1 inCunction% o# p#eli4ina#1 4an0ato#1 inCunction in an1 case% 0ispute% o# cont#o,e#s1 in,ol,in5 an inf#ast#uctu#e p#oCect% o# a 4inin5% fishe#1% fo#est o# othe# natu#al #esou#ce 0e,elop4ent p#oCect of the 5o,e#n4ent% o# an1 public utilit1 ope#ate0 b1 the 5o,e#n4ent% inclu0in5 a4on5 othe#s public utilities fo# the t#anspo#t of the 5oo0s o# co44o0ities% ste,e0o#in5 an0 a##ast#e cont#acts% to p#ohibit an1 pe#son o# pe#sons% entit1 o# 5o,e#n4ent official f#o4 p#ocee0in5 :ith% o# continuin5 the eAecution o# i4ple4entation of an1 such p#oCect% o# the ope#ation of such public utilit1% o# pu#suin5 an1 la:ful acti,it1 necessa#1 fo# such eAecution% i4ple4entation o# ope#ation. The 4o,ants also conten0e0 that the Buestion of the p#op#iet1 of a p#eli4ina#1 inCunction ha0 beco4e 4oot an0 aca0e4ic because the #est#ainin5 o#0e# :as #ecei,e0 late% at 2 o>cloc7 in the afte#noon of

)ece4be# 12% 1"??% afte# the bi00in5 ha0 been con0ucte0 an0 close0 at ele,en thi#t1 in the 4o#nin5 of that 0ate. -n thei# opposition to the 4otion% the plaintiffs a#5ue0 a5ainst the applicabilit1 of P.). 1?1?% pointin5 out that :hile -SCO. :as a state colle5e% it ha0 its o:n cha#te# an0 sepa#ate eAistence an0 :as not pa#t of the national 5o,e#n4ent o# of an1 local political sub0i,ision. E,en if P.).1?1? :e#e applicable% the p#ohibition p#esu4e0 a ,ali0 an0 le5al 5o,e#n4ent p#oCect% not one tainte0 :ith ano4alies li7e the p#oCect at ba#. The1 also cite0 .ilipinas Ma#ble Co#p. ,s. -AC%H!I :he#e the Cou#t allo:e0 the issuance of a :#it of p#eli4ina#1 inCunction 0espite a si4ila# p#ohibition foun0 in P.). !?&. The Cou#t the#ein state0 that3 The 5o,e#n4ent% ho:e,e#% is boun0 b1 basic p#inciples of fai#ness an0 0ecenc1 un0e# the 0ue p#ocess clause of the Bill of Ri5hts. P.). !?& :as ne,e# 4eant to p#otect officials of 5o,e#n4ent=len0in5 institutions :ho ta7e o,e# the 4ana5e4ent of a bo##o:e# co#po#ation% lea0 that co#po#ation to ban7#uptc1 th#ou5h 4is4ana5e4ent o# 4isapp#op#iation of its fun0s% an0 :ho% afte# #uinin5 it% use the 4an0ato#1 p#o,isions of the 0ec#ee to a,oi0 the conseBuences of thei# 4is0ee0s 8p. 1??% un0e#sco#in5 supplie09. On 2anua#1 2% 1"?"% the t#ial cou#t lifte0 the #est#ainin5 o#0e# an0 0enie0 the petition fo# p#eli4ina#1 inCunction. -t 0ecla#e0 that the buil0in5 sou5ht to be const#ucte0 at the -SCO. :as an inf#ast#uctu#e p#oCect of the 5o,e#n4ent fallin5 :ithin the co,e#a5e of P.). 1?1?. E,en if it :e#e not% the petition fo# the issuance of a :#it of p#eli4ina#1 inCunction :oul0 still fail because the she#iff>s #etu#n sho:e0 that PBAC :as se#,e0 a cop1 of the #est#ainin5 o#0e# afte# the bi00in5 sou5ht to be #est#aine0 ha0 al#ea01 been hel0. .u#the#4o#e% the 4e4be#s of the PBAC coul0 not be #est#aine0 f#o4 a:a#0in5 the p#oCect because the autho#it1 to 0o so :as lo05e0 in the P#esi0ent of the -SCO.% :ho :as not a pa#t1 to the case.H<I -n the petition no: befo#e us% it is #eite#ate0 that P.). 1?1? 0oes not co,e# the -SCO. because of its sepa#ate an0 0istinct co#po#ate pe#sonalit1. -t is also st#esse0 a5ain that the p#ohibition un0e# P.). 1?1? coul0 not appl1 to the p#esent cont#o,e#s1 because the p#oCect :as ,itiate0 :ith i##e5ula#ities% to :it3 1. The in,itation to bi0 as publishe0 fiAe0 the 0ea0line of sub4ission of p#e= Bualification 0ocu4ent on )ece4be# 2% 1"?? :ithout in0icatin5 an1 ti4e% 15

1et afte# 1 3 o>cloc7 of the 5i,en 0ate% the PBAC al#ea01 #efuse0 to accept petitione#s> 0ocu4ents. 2. The ti4e an0 0ate of bi00in5 :as publishe0 as )ece4be# 12% 1"?? at !3 p.4. 1et it :as hel0 at 1 3 o>cloc7 in the 4o#nin5. !. P#i,ate #espon0ents% fo# the pu#pose of in,itin5 bi00e#s to pa#ticipate% issue0 a 4i4eo5#aphe0 F-n,itation to Bi0F fo#4% :hich b1 la: 8P.). 1&"< an0 -4ple4entin5 Rules% EAh. B=19 is to contain the pa#ticula#s of the p#oCect subCect of bi00in5 fo# the pu#poses of 8i9 enablin5 bi00e#s to 4a7e an intelli5ent an0 accu#ate bi0sE 8ii9 fo# PBAC to ha,e a unifo#4 basis fo# e,aluatin5 the bi0sE 8iii9 to p#e,ent collusion bet:een a bi00e# an0 the PBAC% b1 openin5 to all the pa#ticula#s of a p#oCect. A00itionall1% the -n,itation to Bi0 p#epa#e0 b1 the #espon0ents an0 the -te4i6e0 Bill of Muantities the#ein :e#e left blan7.H&I An0 althou5h the p#oCect in Buestion :as a FConst#uction%F the p#i,ate #espon0ents use0 an -n,itation to Bi0 fo#4 fo# FMate#ials.FH$I The petitione#s also point out that the ,ali0it1 of the :#it of p#eli4ina#1 inCunction ha0 not 1et beco4e 4oot an0 aca0e4ic because e,en if the bi0s ha0 been opene0 befo#e the #est#ainin5 o#0e# :as issue0% the p#oCect itself ha0 not 1et been a:a#0e0. The -SCO. p#esi0ent :as not an in0ispensable pa#t1 because the si5nin5 of the a:a#0 :as 4e#el1 a 4iniste#ial function :hich he coul0 pe#fo#4 onl1 upon the #eco44en0ation of the A:a#0 Co44ittee. At an1 #ate% the co4plaint ha0 al#ea01 been 0ul1 a4en0e0 to inclu0e hi4 as a pa#t1 0efen0ant. -n thei# Co44ent% the p#i,ate #espon0ents 4aintain that since the 4e4be#s of the boa#0 of t#ustees of the -SCO. a#e all 5o,e#n4ent officials un0e# Section D of P.). 1&2! an0 since the ope#ations an0 4aintenance of the -SCO. a#e p#o,i0e0 fo# in the Gene#al App#op#iations 'a:% it shoul0 be consi0e#e0 a 5o,e#n4ent institution :hose inf#ast#uctu#e p#oCect is co,e#e0 b1 P.). 1?1?. Re5a#0in5 the sche0ule fo# p#e=Bualification% the p#i,ate #espon0ents insist that PBAC poste0 on the -SCO. bulletin boa#0 an announce4ent that the 0ea0line fo# the sub4ission of p#e=Bualification 0ocu4ents :as at 1 o>cloc7 of )ece4be# 2% 1"??% an0 the openin5 of bi0s :oul0 be hel0 at 1 o>cloc7 in the afte#noon of )ece4be# 12% 1"??. As of ten o>cloc7 in the 4o#nin5 of )ece4be# 2% 1"??% B.E. Const#uction an0 Best Built Const#uction ha0 file0 onl1 thei# lette#s of intent. At t:o o>cloc7 in the

afte#noon% B.E. an0 Best Built file th#ou5h thei# co44on #ep#esentati,e% Nenette Ga#uello% thei# p#e=Bualification 0ocu4ents :hich :e#e a04itte0 but sta4pe0 Fsub4itte0 late.F The petitione#s :e#e info#4e0 of thei# 0isBualification on the sa4e 0ate% an0 the 0isBualification beca4e final on )ece4be# $% 1"??. @a,in5 faile0 to ta7e i44e0iate action to co4pel PBAC to p#e=Bualif1 the4 0espite thei# notice of 0isBualification% the1 cannot no: co4e to this Cou#t to Buestion the bi00in5 p#ope# in :hich the1 ha0 not pa#ticipate0. -n the petitione#s> Repl1% the1 #aise as an a00itional i##e5ula#it1 the ,iolation of the #ule that :he#e the esti4ate0 p#oCect cost is f#o4 P1M to P&M% the issuance of plans% specifications an0 p#oposal boo7 fo#4s shoul0 be 4a0e thi#t1 0a1s befo#e the 0ate of bi00in5.HDI The1 point out that these fo#4s :e#e issue0 onl1 on )ece4be# 2% 1"??% an0 not at the latest on No,e4be# 12% 1"??% the be5innin5 of the ! =0a1 pe#io0 p#io# to the sche0ule0 bi00in5. -n thei# ReCoin0e#% the p#i,ate #espon0ents a,e# that the 0ocu4ents of B.E. an0 Best Built :e#e #ecei,e0 althou5h file0 late an0 :e#e #e,ie:e0 b1 the A:a#0 Co44ittee% :hich 0isco,e#e0 that the cont#acto#s ha0 eApi#e0 licenses. B.E.>s te4po#a#1 ce#tificate of Rene:al of Cont#acto#>s 'icense :as ,ali0 onl1 until Septe4be# ! % 1"??% :hile Best Built>s license :as ,ali0 onl1 up to 2une ! % 1"??. The Cou#t has consi0e#e0 the a#5u4ents of the pa#ties in li5ht of thei# testi4onial an0 0ocu4enta#1 e,i0ence an0 the applicable la:s an0 Cu#isp#u0ence. -t fin0s fo# the petitione#s. The 1"?D A04inist#ati,e Co0e 0efines a 5o,e#n4ent inst#u4entalit1 as follo:s3 -nst#u4entalit1 #efe#s to an1 a5enc1 of the National Go,e#n4ent% not inte5#ate0 :ithin the 0epa#t4ent f#a4e:o#7% ,este0 :ith special functions o# Cu#is0iction b1 la:% en0o:e0 :ith so4e if not all co#po#ate po:e#s% a04iniste#in5 special fun0s% an0 enCo1in5 ope#ational autono41% usuall1 th#ou5h a cha#te#. This te#4 inclu0es #e5ulato#1 a5encies% cha#te#e0 institutions% an0 5o,e#n4ent=o:ne0 o# cont#olle0 co#po#ations. 8Sec. 2 8&9 -nt#o0ucto#1 P#o,isions9. The sa4e Co0e 0esc#ibes a cha#te#e0 institution thus3

Cha#te#e0 institution = #efe#s to an1 a5enc1 o#5ani6e0 o# ope#atin5 un0e# a special cha#te#% an0 ,este0 b1 la: :ith functions #elatin5 to specific constitutional policies o# obCecti,es. This te#4 inclu0es the state uni,e#sities an0 colle5es% an0 the 4oneta#1 autho#it1 of the state. 8Sec. 2 8129 -nt#o0ucto#1 P#o,isions9. -t is clea# f#o4 the abo,e 0efinitions that -SCO. is a cha#te#e0 institution an0 is the#efo#e co,e#e0 b1 P.). 1?1?. The#e a#e also in0ications in its cha#te# that -SCO. is a 5o,e#n4ent inst#u4entalit1. .i#st% it :as c#eate0 in pu#suance of the inte5#ate0 fishe#ies 0e,elop4ent polic1 of the State% a p#io#it1 p#o5#a4 of the 5o,e#n4ent to effect the socio=econo4ic life of the nation. Secon0% the T#easu#e# of the Republic of the Philippines shall also be the eA=officio T#easu#e# of the state colle5e :ith its accounts an0 eApenses to be au0ite0 b1 the Co44ission on Au0it o# its 0ul1 autho#i6e0 #ep#esentati,e. Thi#0% hea0s of bu#eaus an0 offices of the National Go,e#n4ent a#e autho#i6e0 to loan o# t#ansfe# to it% upon #eBuest of the p#esi0ent of the state colle5e% such appa#atus% eBuip4ent% o# supplies an0 e,en the se#,ices of such e4plo1ees as can be spa#e0 :ithout se#ious 0et#i4ent to public se#,ice. 'astl1% an a00itional a4ount of P1.&M ha0 been app#op#iate0 out of the fun0s of the National T#easu#1 an0 it :as also 0ec#ee0 in its cha#te# that the fun0s an0 4aintenance of the state colle5e :oul0 hencefo#th be inclu0e0 in the Gene#al App#op#iations 'a:.H?I Ne,e#theless% it 0oes not auto4aticall1 follo: that -SCO. is co,e#e0 b1 the p#ohibition in the sai0 0ec#ee. -n the case of )atiles an0 Co. ,s. Sucal0ito%H"I this Cou#t inte#p#ete0 a si4ila# p#ohibition containe0 in P.). $ &% the la: afte# :hich P.). 1?1? :as patte#ne0. -t :as the#e 0ecla#e0 that the p#ohibition pe#taine0 to the issuance of inCunctions o# #est#ainin5 o#0e#s b1 cou#ts a5ainst a04inist#ati,e acts in cont#o,e#sies in,ol,in5 facts o# the eAe#cise of 0isc#etion in technical cases. The Cou#t obse#,e0 that to allo: the cou#ts to Cu05e these 4atte#s :oul0 0istu#b the s4ooth functionin5 of the a04inist#ati,e 4achine#1. 2ustice Teo0o#o Pa0illa 4a0e it clea#% ho:e,e#% that on issues 0efinitel1 outsi0e of this 0i4ension an0 in,ol,in5 Buestions of la:% cou#ts coul0 not be p#e,ente0 b1 P.). No. $ & f#o4 eAe#cisin5 thei# po:e# to #est#ain o# p#ohibit a04inist#ati,e acts. ;e see no #eason :h1 the abo,e #ulin5 shoul0 not appl1 to P.). 1?1?. 16

The#e a#e at least t:o i##e5ula#ities co44itte0 b1 PBAC that Custifie0 inCunction of the bi00in5 an0 the a:a#0 of the p#oCect. .i#st% PBAC set 0ea0lines fo# the filin5 of the PRE=C1 an0 the openin5 of bi0s an0 then chan5e0 these 0ea0lines :ithout p#io# notice to p#ospecti,e pa#ticipants. Un0e# the Rules -4ple4entin5 P.). 1&"<% p#esc#ibin5 policies an0 5ui0elines fo# 5o,e#n4ent inf#ast#uctu#e cont#acts% PBAC shall p#o,i0e p#ospecti,e bi00e#s :ith the Notice to P#e=Bualification an0 othe# #ele,ant info#4ation #e5a#0in5 the p#opose0 :o#7. P#ospecti,e cont#acto#s shall be #eBui#e0 to file thei# ARC=Cont#acto#s Confi0ential Application fo# Re5ist#ation L Classifications L the PRE=C2 Confi0ential P#e=Bualification State4ent fo# the P#oCect 8p#io# to the a4en04ent of the #ules% this :as #efe##e0 to as P#e=C19 not late# than the 0ea0line set in the publishe0 -n,itation to Bi0% afte# :hich 0ate no PRE=C2 shall be sub4itte0 an0 #ecei,e0. -n,itations to Bi0 shall be a0,e#tise0 fo# at least th#ee ti4es :ithin a #easonable pe#io0 but in no case less than t:o :ee7s in at least t:o ne:spape#s of 5ene#al ci#culations.H1 I PBAC a0,e#tise0 the p#e=Bualification 0ea0line as )ece4be# 2% 1"??% :ithout statin5 the hou# the#eof% an0 announce0 that the openin5 of bi0s :oul0 be at ! o>cloc7 in the afte#noon of )ece4be# 12% 1"??. This sche0ule :as chan5e0 an0 a notice of such chan5e :as 4e#el1 poste0 at the -SCO. bulletin boa#0. The notice a0,ance0 the cut=off ti4e fo# the sub4ission of p#e=Bualification 0ocu4ents to 1 o>cloc7 in the 4o#nin5 of )ece4be# 2% 1"??% an0 the openin5 of bi0s to 1 o>cloc7 in the afte#noon of )ece4be# 12% 1"??. The ne: sche0ule cause0 the p#e=0isBualification of the petitione#s as #eco#0e0 in the 4inutes of the PBAC 4eetin5 hel0 on )ece4be# $% 1"??. ;hile it 4a1 be t#ue that the#e :e#e fou#teen cont#acto#s :ho :e#e p#e= Bualifie0 0espite the chan5e in sche0ule% this fact 0i0 not cu#e the 0efect of the i##e5ula# notice. Notabl1% the petitione#s :e#e 0isBualifie0 because the1 faile0 to 4eet the ne: 0ea0line an0 not because of thei# eApi#e0 licenses.TT ;e ha,e hel0 that :he#e the la: #eBui#es a p#e,ious a0,e#tise4ent befo#e 5o,e#n4ent cont#acts can be a:a#0e0% non=co4pliance :ith the #eBui#e4ent :ill% as a 5ene#al #ule% #en0e# the sa4e ,oi0 an0 of no effect. H11I The fact that an in,itation fo# bi0s has been co44unicate0 to a 17

nu4be# of possible bi00e#s is not necessa#il1 sufficient to establish co4pliance :ith the #eBui#e4ents of the la: if it is sho:n that othe# possible bi00e#s ha,e not been si4ila#l1 notifie0.H12I Secon0% PBAC :as #eBui#e0 to issue to p#e=Bualifie0 applicants the plans% specifications an0 p#oposal boo7 fo#4s fo# the p#oCect to be bi0 thi#t1 0a1s befo#e the 0ate of bi00in5 if the esti4ate0 p#oCect cost :as bet:een P1M an0 P&M. PBAC has not 0enie0 that these fo#4s :e#e issue0 onl1 on )ece4be# 2% 1"??% o# onl1 ten 0a1s befo#e the bi00in5 sche0ule0 fo# )ece4be# 12% 1"??. At the ,e#1 latest% PBAC shoul0 ha,e issue0 the4 on No,e4be# 12% 1"??% o# ! 0a1s befo#e the sche0ule0 bi00in5. -t is appa#ent that the p#esent cont#o,e#s1 0i0 not a#ise f#o4 the 0isc#etiona#1 acts of the a04inist#ati,e bo01 no# 0oes it in,ol,e 4e#el1 technical 4atte#s. ;hat is in,ol,e0 he#e is non=co4pliance :ith the p#oce0u#al #ules on bi00in5 :hich #eBui#e0 st#ict obse#,ance. The pu#pose of the #ules i4ple4entin5 P.). 1&"< is to secu#e co4petiti,e bi00in5 an0 to p#e,ent fa,o#itis4% collusion an0 f#au0 in the a:a#0 of these cont#acts to the 0et#i4ent of the public. This pu#pose :as 0efeate0 b1 the i##e5ula#ities co44itte0 b1 PBAC. -t has been hel0 that the th#ee p#inciples in public bi00in5 a#e the offe# to the public% an oppo#tunit1 fo# co4petition an0 a basis fo# eAact co4pa#ison of bi0s. A #e5ulation of the 4atte# :hich eAclu0es an1 of these facto#s 0est#o1s the 0istincti,e cha#acte# of the s1ste4 an0 th:a#ts the pu#pose of its a0option.H1!I -n the case at ba#% it :as the lac7 of p#ope# notice #e5a#0in5 the p#e= Bualification #eBui#e4ent an0 the bi00in5 that cause0 the eli4ination of petitione#s B.E. an0 Best Built. -t :as not because of thei# eApi#e0 licenses% as p#i,ate #espon0ents no: clai4. Mo#eo,e#% the plans an0 specifications :hich a#e the cont#acto#s> 5ui0e to an intelli5ent bi0% :e#e not issue0 on ti4e% thus 0efeatin5 the 5ua#ant1 that cont#acto#s be place0 on eBual footin5 :hen the1 sub4it thei# bi0s. The pu#pose of co4petiti,e bi00in5 is ne5ate0 if so4e cont#acto#s a#e info#4e0 ahea0 of thei# #i,als of the plans an0 specifications that a#e to be the subCect of thei# bi0s. P.). 1?1? :as not inten0e0 to shiel0 f#o4 Cu0icial sc#utin1 i##e5ula#ites co44itte0 b1 a04inist#ati,e a5encies such as the ano4alies abo,e 0esc#ibe0. @ence% the challen5e0 #est#ainin5 o#0e# :as not i4p#ope#l1

issue0 b1 the #espon0ent Cu05e an0 the :#it of p#eli4ina#1 inCunction shoul0 not ha,e been 0enie0. ;e note f#o4 AnneA M of the p#i,ate #espon0ent>s 4e4o#an0u4% ho:e,e#% that the subCect p#oCect has al#ea01 been F1 K co4plete0 as to the En5inee#in5 Stan0a#0.F This fait acco4pli has 4a0e the petition fo# a :#it of p#eli4ina#1 inCunction 4oot an0 aca0e4ic. ;e co4e no: to the liabilities of the p#i,ate #espon0ents.

t#ustees% na4el1% Manuel R. Penachos% 2#.% Alf#e0o Matan55a% En#ico Tica#% an0 Te#esita *illanue,a% to each pa1 sepa#atel1 to petitione#s Ma#ia Elena Mala5a an0 2osieleen NaCa##o no4inal 0a4a5es of P1 % . eachE an0 c9 #e4o,in5 the sai0 chai#4an an0 4e4be#s f#o4 the PBAC boa#0 of t#ustees% o# :hoe,e# a4on5 the4 is still incu4bent the#ein% fo# thei# 4alfeasance in office. Costs a5ainst PBAC. 'et a cop1 of this 0ecision be sent to the Office of the O4bu0s4an.

-t has been hel0 in a lon5 line of cases that a cont#act 5#ante0 :ithout the co4petiti,e bi00in5 #eBui#e0 b1 la: is ,oi0% an0 the pa#t1 to :ho4 it is a:a#0e0 cannot benefit f#o4 it.H1<I -t has not been sho:n that the i##e5ula#ities co44itte0 b1 PBAC :e#e in0uce0 b1 o# pa#ticipate0 in b1 an1 of the cont#acto#s. @ence% liabilit1 shall attach onl1 to the p#i,ate #espon0ents fo# the p#eCu0ice sustaine0 b1 the petitione#s as a #esult of the ano4alies 0esc#ibe0 abo,e. As the#e is no e,i0ence of the actual loss suffe#e0 b1 the petitione#s% co4pensato#1 0a4a5e 4a1 not be a:a#0e0 to the4. Mo#al 0a4a5es 0o not appea# to be 0ue eithe#. E,en so% the Cou#t cannot close its e1es to the e,i0ent ba0 faith that cha#acte#i6e0 the con0uct of the p#i,ate #espon0ents% inclu0in5 the i##e5ula#ities in the announce4ent of the bi00in5 an0 thei# effo#ts to pe#sua0e the -SCO. p#esi0ent to a:a#0 the p#oCect afte# t:o 0a1s f#o4 #eceipt of the #est#ainin5 o#0e# an0 befo#e the1 4o,e0 to lift such o#0e#. .o# such Buestionable acts% the1 a#e liable in no4inal 0a4a5es at least in acco#0ance :ith A#ticle 2221 of the Ci,il Co0e% :hich states3 A#t. 2221. No4inal 0a4a5es a#e a0Cu0icate0 in o#0e# that a #i5ht of the plaintiff% :hich has been ,iolate0 o# in,a0e0 b1 the 0efen0ant 4a1 be ,in0icate0 o#% #eco5ni6e0% an0 not fo# the pu#pose of in0e4nif1in5 the plaintiff fo# an1 loss suffe#e0 b1 hi4. These 0a4a5es a#e to be assesse0 a5ainst the p#i,ate #espon0ents in the a4ount of P1 % . each% to be pai0 sepa#atel1 fo# each of petitione#s B.E. Const#uction an0 Best Built Const#uction. The othe# petitione#% OcceUa Buil0e#s% is not entitle0 to #elief because it a04itte0l1 sub4itte0 its p#e= Bualification 0ocu4ents on )ece4be# &% 1"??% o# th#ee 0a1s afte# the 0ea0line. ;@ERE.ORE% Cu054ent is he#eb1 #en0e#e03 a9 uphol0in5 the #est#ainin5 o#0e# 0ate0 )ece4be# 12% 1"??% as not co,e#e0 b1 the p#ohibition in P.). 1?1?E b9 o#0e#in5 the chai#4an an0 the 4e4be#s of the PBAC boa#0 of 18

SO OR)ERE). G#iUo=ABuino% Me0ial0ea% an0 Bellosillo% 22.% concu#. T -4ple4entin5 Rules an0 Re5ulations on P) 1&"< 8P#esc#ibin5 Policies% Gui0elines% Rules an0 Re5ulations fo# Go,e#n4ent -nf#ast#uctu#e Cont#acts9 as a4en0e0. Official Ga6ette% *ol. ?<% No. 2!% p. !!< =!!$&% 2une $% 1"??.

.-RST )-*-S-ON H G.R. No. 111 "1% Au5ust 21% 1""& I ENG-NEER C'ARO 2. PREC'ARO% SAN)-GANBA/AN AN) PEOP'E O. RESPON)ENTS. )EC-S-ON +APUNAN% 2.3 On 1< 2une 1"" % petitione# :as cha#5e0 befo#e the San0i5anba1an :ith a ,iolation of Sec. !8b9 of R.A. No. ! 1" as a4en0e0% othe#:ise 7no:n as the Anti=G#aft an0 Co##upt P#actices Act. The info#4ation a5ainst hi4 #ea0 as follo:s3 That on o# about 2une ?% 1"" % o# so4eti4e p#io# the#eto% in Mue6on Cit1% Philippines% an0 :ithin the Cu#is0iction of this @ono#able Cou#t% the abo,e= na4e0 accuse0% a public office#% bein5 then the P#oCect Mana5e#GConsultant of the Che4ical Mine#al )i,ision% -n0ust#ial Technolo51 )e,elop4ent -nstitute% )epa#t4ent of Science an0 Technolo51% a co4ponent of the -n0ust#ial )e,elop4ent -nstitute 8-T)- fo# b#e,it19 :hich is an a5enc1 of the )epa#t4ent of Science an0 Technolo51 8)OST fo# b#e,it19% :he#ein the 2ai4e Sta. Ma#ia Const#uction un0e#too7 the const#uction of the buil0in5 in Bicutan% Ta5ui5% Met#o Manila% :ith a total cost of SE*ENTEEN M-''-ON S-V @UN)RE) N-NET/ .-*E T@OUSAN) PESOS 8P1D%$"&% . 9 Cointl1 fun0e0 b1 the Philippine an0 2apanese Go,e#n4ents% an0 :hile the sai0 const#uction has not 1et been finall1 co4plete0% accuse0 eithe# 0i#ectl1 #eBueste0 an0Go# 0e4an0e0 fo# hi4self o# fo# anothe#% the su4 of T;O @UN)RE) T@OUSAN) PESOS 8P2 % . 9% clai4e0 as pa#t of the eApecte0 p#ofit of .OUR @UN)RE) S-VT/ T@OUSAN) PESOS 8P<$ % . 9 in connection :ith the const#uction of that 5o,e#n4ent buil0in5 :he#ein the accuse0 ha0 to inte#,ene un0e# the la: in his capacit1 as P#oCect Mana5e#GConsultant of sai0 const#uction = sai0 offense ha,in5 been co44itte0 in #elation to the pe#fo#4ance of his official 0uties. CONTRAR/ TO 'A;.H1I On 2 2ul1 1"" % 0u#in5 a##ai5n4ent% petitione# plea0e0 Fnot 5uilt1F to the cha#5es a5ainst hi4. 19 PET-T-ONER% *S. T@E P@-'-PP-NES%

On ! 2une 1""!% afte# t#ial on the 4e#its% the Secon0 )i,ision of the San0i5anba1an #en0e#e0 Cu054ent fin0in5 petitione# 5uilt1 be1on0 #easonable 0oubt. The 0ispositi,e po#tion #ea0s as follo:s3 ;@ERE.ORE% Cu054ent is he#eb1 #en0e#e0 fin0in5 accuse0 Cla#o P#ecla#o 1 2a4balos GU-'T/ be1on0 #easonable 0oubt of the *iolation of Section !% pa#a5#aph 8b9 of Republic Act No. ! 1"% as a4en0e0% othe#:ise 7no:n as the Anti=G#aft an0 Co##upt P#actices Act% an0 he is he#eb1 sentence0 to suffe# an in0ete#4inate penalt1 #an5in5 f#o4 S-V 8$9 /EARS an0 ONE 819 MONT@% as the 4ini4u4% to TEN 81 9 /EARS an0 ONE 819 )A/% as the 4aAi4u4% pe#petual 0isBualification f#o4 public office an0 to pa1 the costs of this action. SO OR)ERE).H2I The antece0ent facts a#e la#5el1 un0ispute0. On 1 Octobe# 1"?"% the Che4ical Mine#al )i,ision of the -n0ust#ial Technolo51 )e,elop4ent -nstitute 8-T)-9% a co4ponent of the )epa#t4ent of Science an0 Technolo51 8)OST9 e4plo1e0 Petitione# un0e# a :#itten cont#act of se#,ices as P#oCect Mana5e# to supe#,ise the const#uction of the -T)-=CM) 82-CA9 Buil0in5 at the )OST Co4poun0 in Bicutan% Ta5ui5% Met#o Manila.H!I The cont#act :as to #e4ain in effect f#o4 Octobe# 1% 1"?" up to the en0 of the const#uction pe#io0 unless soone# te#4inate0.H<I Petitione# :as to be pai0 a 4onthl1 sala#1 0#a:n f#o4 counte#=pa#t fun0s 0ul1 finance0 b1 fo#ei5n=assiste0 p#oCects an0 5o,e#n4ent fun0s 0ul1 #elease0 b1 the )epa#t4ent of Bu05et an0 Mana5e4ent.H&I -n No,e4be# 1"?"% to buil0 the afo#e4entione0 CM) St#uctu#e% )OST cont#acte0 the se#,ices of the 2ai4e Sta. Ma#ia Const#uction Co4pan1 :ith En5#. AleAan0e# Resoso% as the co4pan1>s p#oCect en5inee#.H$I @o: petitione# co44itte0 a ,iolation of the Anti=G#aft L Co##upt P#actices Act is na##ate0 in the Co44ent of the Solicito# Gene#al an0 a4pl1 suppo#te0 b1 the #eco#0s. The 4ate#ial po#tions a#e he#eun0e# #ep#o0uce03 AAA AAA AAA.

!. -n the 4onth of Ma1% 1"" % AleAan0e# Resoso% P#oCect En5inee# of the Sta. Ma#ia Const#uction Co4pan1% :as in the p#ocess of e,aluatin5 a Chan5e O#0e# fo# so4e elect#icals in the buil0in5 const#uction :hen petitione# app#oache0 hi4 at the p#oCect site 8p. 11% 2&% -bi0.9. <. UneApecte0l1% petitione# 4a0e so4e o,e#tu#es that eApenses in the Chan5e O#0e# :ill be 0e0ucti,e 84eanin5% cha#5e0 to the cont#acto# b1 0e0uctin5 f#o4 the cont#act p#ice9% instea0 of a00iti,e 84eanin5% cha#5e0 to the o:ne#9. Petitione# inti4ate0 that he can fo#5et about the 0e0ucti,e p#o,i0e0 he 5ets P2 % . % a chun7 of the cont#acto#>s p#ofit :hich he #ou5hl1 esti4ate0 to be a#oun0 P<$ % . 8pp. 12=1!% 22% -bi0.9. &. @a,in5 con,e1e0 the p#oposal to 2ai4e Sta. Ma#ia% S#.% the o:ne# of Sta. Ma#ia Const#uction Co4pan1% Resoso the#eafte# as7e0 petitione# if he :ante0 a #en0e6,ous fo# hi4 to #ecei,e the 4one1. Petitione# chose ;en01>s Restau#ant% co#ne# E. )elos Santos A,enue an0 Ca4ias St#eet% on 2une $% 1"" at a#oun0 ?3 o>cloc7 in the e,enin5 8p. 1<% -bi0.9. $. @o:e,e#% Sta. Ma#ia% S#. as7e0 fo# t:o 829 4o#e 0a1s o# until the ?th of 2une% pe#cei,in5 financial const#aints 8-bi0.9. D. Petitione# #elente0% sa1in5 FO.+. lan5 :ith 4e because :e a#e not in a hu##1.F 8P. 1&% -bi0.9 Petitione# :as the#eafte# as7e0 to b#in5 alon5 the #esult of the punch list 84eanin5% the list of 0efecti,e o# co##ectible :o#7s to be 0one b1 the cont#acto#9 8p. 1&% -bi0.E p. 1 % TSN% 1? Oct. 1""19. ?. On D 2une 1"" % Sta. Ma#ia% S#. an0 Resoso p#ocee0e0 to the National Bu#eau of -n,esti5ation 8NB-9 to #epo#t the inci0ent 8p. 1&% !&% -bi0.9. ". The NB- su55este0 an ent#ap4ent plan to :hich Sta. Ma#ia% S#. si5nifie0 his confo#4it1 8p. 1$% TSN% 12 Oct. 1"" 9. Acco#0in5l1% Sta. Ma#ia% S#. :as #eBueste0 to p#o0uce the a4ount of P& % . in P& . 0eno4ination to #ep#esent the 5#ease 4one1 8p. !D% TSN% $ Sept. 1"" 9. 1 . The neAt 0a1% o# on ? 2une 1"" % Resoso 0eli,e#e0 the 4one1 to the NB-. The#eafte#% the 4one1 :as 0uste0 :ith flou#escent po:0e# an0 place0 insi0e an attache case 8pp. 1$=1D% -bi0.9. Resoso 5ot the attache case an0 :as inst#ucte0 not to open it. Si4ila#l1% he :as a0,ise0 to p#ocee0 at the ;en01>s Restau#ant ea#lie# than the 0esi5nate0 ti4e :he#e 20

a 5#oup of NB- 4en a:aite0 hi4 an0 his co4panion% Sta. Ma#ia% 2#. 8pp. 1D=1?% -bi0.9. 11. @ence% f#o4 the NB-% Resoso passe0 b1 the 2a0e *alle1 Restau#ant in Ti4o5% Mue6on Cit1% to fetch Sta. Ma#ia% 2#. 8-bi0.9. 12. At a#oun0 D3!& p.4.% Resoso an0 Sta. Ma#ia% 2#. a##i,e0 at the ;en01>s Restau#ant. The1 :e#e le0 b1 the NB- 4en to a table p#e,iousl1 #ese#,e0 b1 the4 :hich :as si4ila#l1 a0Cacent to a table occupie0 b1 the4 8pp. 1?= 1"% -bi0.9. 1!. T:ent1 4inutes late#% petitione# a##i,e0. con,e#sation too7 place% to :it3 Suppose0l1% the follo:in5

2UST-CE BA'A2A)-A3 B. ;hen )a,e P#ecla#o a##i,e0% :hat 0i0 he 0oW a. ;e as7e0 hi4 his o#0e# an0 :e tal7e0 about the punch list. B. ;hat :as his co44ent about the punch listW a. @e tol0 us that it is ha#0e# to p#o0uce s4all ite4s than bi5 ones. B. @o: lon5 0i0 1ou con,e#se :ith En5#. Cla#o P#ecla#oW a. - thin7 thi#t1 4inutes o# so. B.;as P#ecla#o alone :hen he ca4eW a./es% /ou# @ono#. AAA AAA AAA. PROS. CAO-'-3 B. ;hen 1ou tal7He0I about his punch list% 0i0 1ou tal7 about an1thin5 elseW a. En5inee# Sta. Ma#ia% 2#.% the1 :e#e con,e#sin5 :ith )a,e P#ecla#o an0 he tol0 Hhi4I% FO% paano na.F 2UST-CE ESCAREA'3 B. ;ho sai0 FPaano naWF a. En5inee# Sta. Ma#ia% H2#.I. An0 then P#ecla#o tol0 Hhi4I% FPaano% @o: :ill the 4one1 be a##an5e0 an0 can - b#in5 itWF he sai0. An0 then 2i441 Sta. Ma#ia% 2#. tol0 hi4 it :as a##an5e0 on t:o bun0les on t:o en,elopes.

An0 then )a,e P#ecla#o tol0% FPue0eF an0 he as7e0 2i441 Sta. Ma#ia% 2#. if the#e is eAp#ess telle# an0 coul0 he 0eposit 0u#in5 ni5ht ti4e but En5inee# Sta. Ma#ia% 2#. tol0 hi4% F- 0o not ha,e an1 7no:le05e o# - 0o not ha,e an1 eAp#ess telle# 1ou can 0eposit. - onl1 7no: c#e0it ca#0.F PROS. CAO-'-3 B. ;hen En5#. Sta. Ma#ia inte#,ene0 an0 inte#,ie:e0 hi4 that :a1% :as the#e an1thin5 that happene0W a. 2i441 Sta. Ma#ia% 2#. han0e0 t:o en,elopes to P#ecla#o. B. )i0 Cla#o P#ecla#o #ecei,e these t:o en,elopes f#o4 En5inee# Sta. Ma#iaW a. /es% si#. 8Pp. 1"=21% -bi0.% See also pp. 1!=1<% TSN% 2" Oct. 1"" .9 1<. .#o4 the 4o4ent petitione# #ecei,e0 the t:o en,elopes :ith his #i5ht han0% the#eafte# placin5 the4 un0e# his left a#4pit% he :as accoste0 b1 the NB- 4en 8p. 22% TSN% 12 Oct. 1"" 9. 1&. A ca4e#a flashe0 to #eco#0 the e,ent. Petitione# instincti,el1 0oc7e0 to a,oi0 the ta7in5 of pictu#es. -n such 4anne#% the t:o en,elopes fell 8p. 2!% -bi0.9. 1$. The NB- 4en 0i#ecte0 petitione# to pic7 up the t:o en,elopes. Petitione# #efuse0. @ence% one of the NB- 4en pic7e0 up the en,elopes an0 place0 the4 insi0e a bi5 b#o:n en,elope 8p. 2D% -bi0.9. 1D. Petitione# :as thencefo#th b#ou5ht to the NB- fo# eAa4ination 8p. 2?% -bi0.9. 1?. At the NB- .o#ensic Che4ist#1 Section% petitione#>s #i5ht pal4a# han0 :as teste0 positi,e of flou#escent po:0e#. The sa4e fluo#escent po:0e#% ho:e,e#% cannot be 0etecte0 in petitione#>s T=shi#t an0 pants 8p. &% TSN% 2" Oct. 1"" 9.HDI AAA AAA AAA.

p#esent petition fo# #e,ie:% asc#ibin5 to the San0i5anba1an the follo:in5 e##o#s3 1. T@E SAN)-GANBA/AN ERRE) -N TA+-NG COGN-(ANCE O. T@E CASE% -NSTEA) O. )-SM-SS-NG -T .OR 'AC+ O. 2UR-S)-CT-ON% T@E HPET-T-ONERI NOT BE-NG A PUB'-C O..-CERE an0 2. T@E SAN)-GANBA/AN ERRE) -N NOT RU'-NG T@AT NOT A'' T@E E'EMENTS O. T@E O..ENSE C@ARGE) @A*E BEEN ESTAB'-S@E) BE/ON) REASONAB'E )OUBT AN)GOR T@AT T@E GU-'T O. T@E HPET-T-ONERI @AS NOT BEEN ESTAB'-S@E) BE/ON) REASONAB'E )OUBT. ;e fin0 the petition un4e#ito#ious. On the fi#st issue% petitione# asse#ts that he is not a public office# as 0efine0 b1 Sec. 28b9 of the Anti=G#aft L Co##upt P#actices Act 8R.A. No. ! 1" as a4en0e09% because he :as neithe# electe0 no# appointe0 to a public office. Rathe#% petitione# 4aintains that he is 4e#el1 a p#i,ate in0i,i0ual hi#e0 b1 the -T)- on cont#actual basis fo# a pa#ticula# p#oCect an0 fo# a specifie0 pe#io0H?I as e,i0ence0 b1 the cont#act of se#,icesH"I he ente#e0 into :ith the -T)-. Petitione#% to fu#the# suppo#t his Ftheo#1%F alle5e0 that he :as not issue0 an1 appoint4ent pape# sepa#ate f#o4 the abo,e4entione0 cont#act. @e :as not #eBui#e0 to use the bun01 cloc7 to #eco#0 his hou#s of :o#7 an0 neithe# 0i0 he ta7e an oath of office.H1 I ;e a#e not con,ince0 b1 Petitione#>s a#5u4ents. Petitione# 4iscont#ues the 0efinition of Fpublic office#F in R.A. No. ! 1" :hich% acco#0in5 to Sec. 28b9 the#eof Finclu0es electi,e an0 appointi,e officials an0 e4plo1ees% pe#4anent o# te4po#a#1% :hethe# in the classifie0 o# unclassifie0 o# eAe4ption se#,ice #ecei,in5 co4pensation% e,en no4inal% f#o4 the 5o,e#n4ent....F The :o#0 Finclu0esF use0 in 0efinin5 a public office# in Sec. 28b9 in0icates that the 0efinition is not #est#icti,e. The te#4s Fclassifie0% unclassifie0 o# eAe4ption se#,iceF :e#e the ol0 cate5o#ies of positions in the ci,il se#,ice :hich ha,e been #eclassifie0 into Ca#ee# Se#,ice an0 Non=Ca#ee# Se#,iceH11I b1 P) ? D p#o,i0in5 fo# the o#5ani6ation of the Ci,il Se#,ice Co44issionH12I an0 b1 the A04inist#ati,e Co0e of 1"?D.H1!I 21

Thus% as b#ou5ht out at the outset% an info#4ation :as file0 a5ainst petitione# :hich% afte# 0ue hea#in5% #esulte0 in his con,iction b1 the San0i5anba1an. Not satisfie0 :ith the 0ecision% petitione# institute0 the

Non=ca#ee# se#,ice in pa#ticula# is cha#acte#i6e0 b1 = 819 ent#ance on bases othe# than those of the usual test of 4e#it an0 fitness utili6e0 fo# the ca#ee# se#,iceE an0 829 tenu#e :hich is li4ite0 to a pe#io0 specifie0 b1 la:% o# :hich is cote#4inous :ith that of the appointin5 autho#it1 o# subCect to his pleasu#e% o# :hich is li4ite0 to the 0u#ation of a pa#ticula# p#oCect fo# :hich pu#pose e4plo14ent :as 4a0e. The Non=Ca#ee# Se#,ice shall inclu0e3 819 Electi,e officials an0 thei# pe#sonal o# confi0ential staffE 829 Sec#eta#ies an0 othe# officials of Cabinet #an7 :ho hol0 thei# positions at the pleasu#e of the P#esi0ent an0 thei# pe#sonal o# confi0ential staff8s9E 8!9 Chai#4an an0 4e4be#s of co44issions an0 boa#0s :ith fiAe0 te#4s of office an0 thei# pe#sonal o# confi0ential staffE 8<9 Cont#actual pe#sonnel o# those :hose e4plo14ent in the 5o,e#n4ent is in acco#0ance :ith a special cont#act to un0e#ta7e a specific :o#7 o# Cob% #eBui#in5 special o# technical s7ills not a,ailable in the e4plo1in5 a5enc1% to be acco4plishe0 :ithin a specific pe#io0% :hich in no case shall eAcee0 one 1ea#% an0 pe#fo#4s o# acco4plishes the specific :o#7 o# Cob% un0e# his o:n #esponsibilit1 :ith a 4ini4u4 of 0i#ection an0 supe#,ision f#o4 the hi#in5 a5enc1E an0 8&9 E4e#5enc1 an0 seasonal pe#sonnel. 8-talics ou#s.9H1<I .#o4 the fo#e5oin5 classification% it is Buite e,i0ent that petitione# falls un0e# the non=ca#ee# se#,ice cate5o#1 8fo#4e#l1 te#4e0 the unclassifie0 o# eAe4ption se#,ice9 of the Ci,il Se#,ice an0 thus is a public office# as 0efine0 b1 Sec. 28b9 of the Anti=G#aft L Co##upt P#actices Act 8R.A. No. ! 1"9. The fact that petitione# is not #eBui#e0 to #eco#0 his :o#7in5 hou#s b1 4eans of a bun01 cloc7 o# 0i0 not ta7e an oath of office beca4e unessential consi0e#ations in ,ie: of the abo,e=4entione0 p#o,ision of la: clea#l1 inclu0in5 petitione# :ithin the 0efinition of a public office#.

Si4ila#l1% petitione#>s a,e#4ent that he coul0 not be p#osecute0 un0e# the Anti=G#aft L Co##upt P#actices Act because his inte#,ention F:as not #eBui#e0 b1 la: but in the pe#fo#4ance of a cont#act of se#,ices ente#e0 into b1 hi4 as a p#i,ate in0i,i0ual cont#acto#%FH1&I is e##oneous. As 0iscusse0 abo,e% petitione# falls :ithin the 0efinition of a public office# an0 as such% his 0uties 0elineate0 in AnneA FBF of the cont#act of se#,icesH1$I a#e subsu4e0 un0e# the ph#ase F:he#ein the public office# in his official capacit1 has to inte#,ene un0e# the la:.FH1DI Petitione#>s alle5ation% to bo##o: a cliche% is nothin5 but a 4e#e splittin5 of hai#s. A4on5 petitione#>s 0uties as p#oCect 4ana5e# is to e,aluate the cont#acto#>s acco4plish4ent #epo#tsGbillin5sH1?I hence% as co##ectl1 #ule0 b1 the San0i5anba1an he has the Fp#i,ile5e an0 autho#it1 to 4a7e a fa,o#able #eco44en0ation an0 act fa,o#abl1 in behalf of the 5o,e#n4ent%F si5nin5 acceptance pape#s an0 app#o,in5 0e0ucti,es an0 a00iti,es a#e so4e eAa4ples.H1"I All of the ele4ents of Sec. !8b9 of the Anti=G#aft L Co##upt P#actices Act a#e% the#efo#e% p#esent. Anent the secon0 issue% :e li7e:ise fin0 Petitione#>s alle5ations co4pletel1 be#eft of 4e#it. Petitione# insists that the p#osecution has faile0 to establish his 5uilt be1on0 #easonable 0oubt an0 that the cha#5es a5ainst hi4 shoul0 be #eCecte0 fo# bein5 i4p#obable% unbelie,able an0 cont#a#1 to hu4an natu#e. ;e 0isa5#ee. P#oof be1on0 #easonable 0oubt 0oes not 4ean that :hich p#o0uces absolute ce#taint1. Onl1 4o#al ce#taint1 is #eBui#e0 o# Fthat 0e5#ee of p#oof :hich p#o0uces con,iction in an unp#eCu0ice0 4in0.FH2 I ;e ha,e eAtensi,el1 #e,ie:e0 the #eco#0s of this case an0 :e fin0 no #eason to o,e#tu#n the fin0in5s of the San0i5anba1an. Petitione# enu4e#ates the alle5e0 i4p#obabilities an0 inconsistencies in the testi4onies of the p#osecution :itnesses. ;e shall eAa4ine the testi4onies #efe##e0 to :ith 4eticulousness. Petitione# asse#ts that it :as i4p#obable fo# hi4 to ha,e 0e4an0e0 P2 % . f#o4 En5#. Resoso% :hen he coul0 ha,e Cust tal7e0 0i#ectl1 to the cont#acto# hi4self. -t is Buite i##ele,ant f#o4 :ho4 petitione# 22

0e4an0e0 his pe#centa5e sha#e of P2 % . :hethe# f#o4 the cont#acto#>s p#oCect en5inee#% En5#. AleAan0e# Resoso o# 0i#ectl1 f#o4 the cont#acto# hi4self En5#. 2ai4e Sta. Ma#ia S#. That petitione# 4a0e such a 0e4an0 is all that is #eBui#e0 b1 Sec. !8b9 of R.A. No. ! 1" an0 this ele4ent has been sufficientl1 establishe0 b1 the testi4on1 of En5#. Resoso% thus3 AAA AAA AAA. M /ou sai0 :hen 1ou :e#e co4putin5 1ou# Chan5e O#0e# M#. P#ecla#o o# )a,e P#ecla#o :ho4 1ou i0entifie0 app#oache0 1ou% :hat 0i0 1ou tal7 aboutW A @e 4entione0 to 4e that :e a#e 0e0ucti,e in ou# Chan5e O#0e# th#ee an0 fou# so afte# ou# con,e#sation - tol0 this con,e#sation to 41 boss that :e a#e 0e0uctible in the Chan5e O#0e# th#ee an0 fou# an0 then 41 boss tol0 4e to as7 :h1 it is 0e0ucti,e. M )i0 1ou as7 the accuse0 he#e% )a,e P#ecla#o :h1 it is consi0e#e0 0e0ucti,eW A /es% si#. M ;hat :as his ans:e# if an1W A - as7e0 hi4 that 41 boss is as7in5 4e to as7 1ou ho: co4e it beca4e 0e0ucti,e :hen 41 co4putation is a00iti,e an0 he tol0 4e that - ha,e 0one so 4uch fo# 1ou# co4pan1 al#ea01 an0 then he pic7e0 up ce4ent ba5 pape# ba5 an0 co4pute0 ou# alle5e0 p#ofit a4ountin5 to One @un0#e0 SiAt1 Thousan0 Pesos an0 then he tol0 4e that he use0 to use so4e pe#centa5e in p#oCects 4aAi4u4 an0 4ini4u4 an0 in ou# case he :oul0 use a 4ini4u4 pe#centa5e an0 4ultipl1 to $ an0... 2UST-CE ESCAREA'3 M ;hat is <$ W A P<$ % . an0 he sai0 ta7e of the butal an0 5et t:o @un0#e0 Thousan0 Pesos. 2UST-CE BA'A2A)-A3 ;hat is the t#anslation no:W ;-TNESS3 A An0 he sai0 0is#e5a#0 the eAcess an0 - :ill Cust 5et the P2 8Un0e#sco#in5 ou#s.9 % . . 23

PROS CAO-'-3 M ;hat 0oes he 4ean b1 that if 1ou 7no:W A - 0o not 7no: si#. @e Cust sai0% - :ill 5et the P2 % . 8Un0e#sco#in5 ou#s.9 2UST-CE BA'A2A)-A3 M ;hat is P2 % . W A -t is T:o @un0#e0 Thousan0 Pesos.

an0 tell it to 1ou# boss.

PROS CAO-'-3 M ;hat 0i0 1ou ans:e# hi4 :hen he tol0 1ou thatW A @e tol0 4e to fo#5et the 0e0ucti,e an0 elect#ical an0 afte# that - tol0 41 boss :hat he tol0 4e. M ;ho is 1ou# bossW A Santa Ma#ia S#. M ;hat :as the #eaction of 1ou# boss :hen 1ou #ela1e0 the 4essa5e to M#. P#ecla#oW A The neAt 0a1 he tol0 4e to as7 )a,e :he#e an0 :hen to pic7 up the 4one1 so the neAt 0a1 - as7e0 )a,e F;he#e 0o 1ou inten0 to 5et the 4one1% the Boss :ante0 to 7no:.F M ;hat :as the ans:e# of )a,eW A An0 he tol0 4e% ;en01>s Restau#ant at !3 M ;henW A 2une $ ;e0nes0a1. M ;hen he tol0 1ou that 0i0 1ou co4pl1 :ith 2une $ appoint4entW A - tol0 41 boss :hat he tol0 4e a5ain that the 4eetin5 :ill ta7e place at ;en01>s Restau#ant co#ne# E0sa an0 Ca4ias St#eet at a#oun0 ?3 o>cloc7 p.4. 2une $% ;e0nes0a1. M;hat 0i0 1ou# boss tell 1ouW AThe neAt 0a1 he tol0 4e to as7 )a,e. o>cloc7.

M;hat 0i0 1ou# boss tell 1ouW A M1 boss tol0 4e to as7 )a,e to postpone the 4eetin5 on 2une $ to be postpone0 on 2une ? at the sa4e place an0 sa4e ti4e because 41 boss is ha,in5 financial p#oble4. M )i0 1ou #ela1 the postpone4ent to )a,e P#ecla#oW A /es si#. - tol0 :hat 41 boss tol0 4e. M ;hat :as his #eactionW A )a,e tol0 4e FO.+. lan5 :ith 4eF because :e a#e not in a hu##1. An1 :a1 :e a#e the ones to si5n the acceptance pape#s an0 41 boss inst#ucte0 4e that on .#i0a1 to as7 )a,e to b#in5 alon5 the #esult of the punch list an0 if possible also to b#in5 alon5 the acceptance pape#s to be si5ne0 b1 )a,e% '10ia MeCia an0 )#. 'i#a5 the 0i#ecto#. M ;hat happene0 neAt afte# 4eetin5 :ith P#ecla#o to #ela1 the postpone4ent if an1W A Nothin5 happene0. The neAt 0a1% Thu#s0a1 the boss inst#ucte0 4e to 5o :ith hi4 to the NB- to 5i,e a state4ent. M )i0 1ou 5o to the NB- an0 #epo#t to the inci0ent to the NB-W A /es si#. M )i0 1ou 5i,e a state4ent befo#e an1 of the a5ents of the NB-W A /es si#.H21I AAA AAA AAA. 'i7e:ise% petitione#>s alle5e0 #efusal to see M#. 2ai4e Sta. Ma#ia S#. :hen the latte# t#ie0 to a##an5e 4eetin5s :ith hi4 #e5a#0in5 his 0e4an0H22I 0oes not :ea7en the cause a5ainst petitione#. -t 0oes not at all p#o,e that petitione# 0i0 not as7 fo# 4one1. Concei,abl1% petitione# 0i0 not 4uste# enou5h cou#a5e to as7 4one1 0i#ectl1 f#o4 the cont#acto# hi4self. Gettin5 the a4ount th#ou5h the p#oCect en5inee# :oul0 be safe# because if M#. Sta. Ma#ia% S#. ha0 #efuse0 to 5i,e 4one1% petitione# coul0 al:a1s 0en1 ha,in5 4a0e the 0e4an0. Petitione# conten0s that the pe#centa5e 0e4an0e0 in the a4ount of P2 % . is too hi5h consi0e#in5 that the esti4ate0 p#ofit of the cont#acto# f#o4 the CM) p#oCect is onl1 P<$ % . . -n petitione#>s :o#0s% this :oul0 Fsca#e the 5oose that la1s the 5ol0en e55.FH2!I ;e #eCect this 24

a#5u4ent. The afo#e4entione0 cont#acto#>s p#ofit is petitione#>s o:n co4putation as testifie0 to b1 En5#. Resoso3 AAA AAA AAA. A - as7e0 hi4 that 41 boss is as7in5 4e to as7 1ou ho: co4e it beca4e 0e0ucti,e :hen 41 co4putation is a00iti,e an0 he tol0 4e that - ha,e 0one so 4uch fo# 1ou# co4pan1 al#ea01 an0 then he pic7e0 up ce4ent ba5 pape# ba5 an0 co4pute0 ou# alle5e0 p#ofit a4ountin5 to One @un0#e0 SiAt1 Thousan0 Pesos an0 then he tol0 4e that he use0 to use so4e pe#centa5e in p#oCects 4aAi4u4 an0 4ini4u4 an0 in ou# case he :oul0 use a 4ini4u4 pe#centa5e an0 4ultipl1 to <$ an0... 8-talics ou#s.9 2UST-CE ESCAREA'3 M ;hat is <$ W A P<$ % . an0 it en0e0 to P21& thousan0 o# P2 % . an0 he sai0 ta7e of the butal an0 5et the T:o @un0#e0 Thousan0 Pesos. 8-talics ou#s.9 2UST-CE BA'A2A)-A3 M;hat is the t#anslation no:W ;-TNESS3 A An0 he sai0 0is#e5a#0 the eAcess an0 - :ill Cust 5et the P2 PROS CAO-'-3 M ;hat 0oes he 4ean b1 that if 1ou 7no:W A - 0o not 7no: si#. @e Cust sai0% - :ill 5et the P2 1ou# boss.H2<I AAA

an0 tell it to

The #eco#0s% ho:e,e#% 0o not sho: the t#ue an0 actual a4ount that the Sta. Ma#ia Const#uction :ill ea#n as p#ofit. The#e is% the#efo#e% no basis fo# petitione#>s contention as the actual p#ofit 4a1 be lo:e# o# hi5he# than his esti4ation. Besi0es% as #elate0 b1 En5#. Resoso% petitione# consi0e#s the P2 % . pe#centa5e p#ope# co4pensation since he has alle5e0l1 0one so 4uch fo# the Sta. Ma#ia const#uction co4pan1.H2&I Petitione# also a#5ues that3

Acco#0in5 to STA. MAR-A% SR.% the1 :e#e 0e0ucti,e b1 P2? % pp. !<=!&9.

8-0.%

M @o: about the -T)-W A The -T)- #ep#esentati,e co4pose0 of )a,e P#ecla#o. M ;ho is this )a,e P#ecla#oW A @e is the consultant of -T)-. 8Un0e#sco#in5 ou#s.9 AAA AAA AAA. ATT/. CAO-'-3 M As P#oCect En5inee# 0o 1ou consult to an1 bo01 #e5a#0in5 1ou# CobW A .i#st if the#e is an1 p#oble4 in the site - consult 41 boss. PROS CAO-'-3 M @o: about :ith the othe# consultants #ep#esentin5 the -T)- an0 )OSTW A -n the const#uction site :e ha,e 4eetin5 e,e#1 Mon0a1 to 0iscuss an1 p#oble4. M ;ith :ho4 0o 1ou 0iscuss this p#oble4W A The -nf#a=st#uctu#e Co44ittee of )OST an0 the -nf#a=st#uctu#e Co44ittee of -T)-% the a#chitect an0 the cont#acto#. ;e ha0 :ee7l1 4eetin5s. M ;hat 4atte#s if an1 0o 1ou consult :ith M#. Cla#o P#ecla#oW ATT/. 2-MENE(3 No basis. 2UST-CE ESCAREA'3 The1 4et on p#oble4s on Mon0a1s. ATT/. 2-MENE(3 But the#e is no 4ention of P#ecla#o specificall1. 2UST-CE ESCAREA'3 ;ith the #ep#esentati,e of )OST an0 P#ecla#o. ATT/. 2-MENE(3 )oes that also 4ean that P#ecla#o is also a4on5 the #ep#esentati,es he is 5oin5 to consult :ithW ;ell an1 :a1...

-f STA. MAR-A CONSTRUCT-ON :as 0e0ucti,e in the a4ount of P2? % . % :h1 :oul0 the petitione# still 0e4an0 P2 % . :hich :oul0 inc#ease the cont#acto#>s loss to P<? % . X -t 4i5ht ha,e been 0iffe#ent if the chan5es :e#e a00iti,e :he#e STA. MAR-A CONSTRUCT-ON :oul0 ha,e ea#ne0 4o#e% the#eb1 p#o,i0in5 4oti,e fo# the petitione# to as7 fo# a pe#centa5eXH2$I But this is p#ecisel1 :hat petitione# :as ba#5ainin5 fo#= P2 % . in eAchan5e fo# fo#5ettin5 about the 0e0ucti,eH2DI an0 thus p#e,ent the Sta. Ma#ia Const#uction f#o4 incu##in5 losses. Petitione#>s contention that it :as i4possible fo# hi4 to 4a7e an1 0e4an0s because the final 0ecision #e5a#0in5 acco4plish4ents an0 billin5 lies :ith the )OST technical co44ittee is unacceptable. Petitione# is pa#t of the abo,e4entione0 technical co44ittee as the -T)- #ep#esentati,e consultant. This is pa#t of his 0uties un0e# the cont#act of se#,ices in connection :ith :hich he :as e4plo1e0 b1 the -T)-. E,en% assu4in5 a#5uen0o that petitione# 0oes not 4a7e the final 0ecision% as supe#,iso#Gconsultant% his #eco44en0ations :ill necessa#il1 ca##1 4uch :ei5ht. En5#. Resoso testifie0 thus3 PROS CAO-'-3 M As a P#oCect En5inee# to :ho4 0o 1ou p#esent 1ou# billin5 pape#s acco4plish4ent #epo#t o# pu#chase o#0e#W A The billin5 pape# :as bein5 ta7en ca#e0 of b1 the% of ou# office. pe#sonall1 0o 41 Cob as supe#,ision in the const#uction. M )o 1ou ha,e an1 counte#pa#t to supe#,ise the p#oCect f#o4 the 5o,e#n4ent si0eW A /es% :e ha,e. /es% the )OST ha,e a technical Co44ittee -nf#a= St#uctu#e Co44ittee an0 also the -T)- as its o:n #ep#esentati,e. M ;ho co4pose0 the Technical Co44ittee of the )OSTW A A ce#tain En5inee# *elasco% En5inee# San0e Bane6 an0 En5inee# MeCia.

25

2UST-CE ESCAREA'3 ;itness 4a1 ans:e# the Buestion. Rea0 bac7 the Buestion. COURT STENOGRAP@ER3 Rea0in5 bac7 the Buestion as o#0e#e0 b1 the Cou#t. ;-TNESS3 A E,e#1 Mon0a1 4eetin5 :e tac7le :ith acco4plish4ent #epo#t the billin5 pape#s.H2?I 8-talics ou#s.9 AAA AAA AAA. Petitione# also clai4s that the testi4onies of the p#osecution :itnesses #e5a#0in5 the ent#ap4ent itself a#e conflictin5% 0oubtful o# i4p#obable3 8aaa9 acco#0in5 to RESOSO% onl1 .OUR 8<9 P& bills :e#e 0uste0 :ith flou#escent po:0e# an0 use0 in the alle5e0 ent#ap4ent. Cont#a0ictin5 RESOSO% STA. MAR-A% SR. sai0 that he 5a,e fift1 thousan0 8P& % . 9 pesos in P& 0eno4ination to the NB-.H2"I The#e is no such inconsistenc1. Sai0 :itnesses :e#e testif1in5 on t:o 0iffe#ent subCects. En5#. Sta. Ma#ia% S#.>s testi4on1 touche0 on the a4ount he 5a,e the NB- fo# use in the ent#ap4ent :hile En5#. Resoso>s 0ecla#ation #efe##e0 onl1 to the nu4be# of bills 0uste0 :ith flou#escent po:0e#. Petitione#% li7e:ise% 4isapp#eciate0 the follo:in5 testi4on1 of Resoso3 PROS CAO-'-3 M ;hat 0i0 he 0o :ith the t:o en,elopes upon #ecei,in5 the sa4eW

A @e as7e0 4e if the#e :as eAp#ess telle#. - tol0 hi4 - 0o not 7no: then he as7e0 4e :hethe# it is possible to 0eposit at the EAp#ess Telle# at that ti4e. - tol0 hi4 - 0on>t 7no: because - ha,e no eAp#ess telle# ca#0 an0 he as7e0 4e ho: a4 - 5oin5 to a##an5e% ho: :as it a##an5e0 if - :ill b#in5 it% can - b#in5 it. Then - tol0 hi4 that it :as place0 in t:o en,elopes consistin5 of & Peso bills an0 then he sai0 FO7a1 na 1an.FH!1I The failu#e of the NB- to ta7e photo5#aphs of the actual tu#n=o,e# of the 4one1 to petitione# is not fatal to the People>s cause. The t#ansaction :as :itnesse0 b1 se,e#al people% a4on5 :ho4 :e#e En5#. Resoso% M#. Sta. Ma#ia 2#. an0 the NB- a5ents :hose testi4onies on the ci#cu4stances befo#e% 0u#in5 an0 afte# the tu#n=o,e# a#e consistent% lo5ical an0 c#e0ible. Acco#0in5 to NB- A5ent .#ancisco Balanban S#.% the1 pu#posel1 too7 no photo5#aphs of the actual tu#n=o,e# so as not to ale#t an0 sca#e off the petitione#. )u#in5 c#oss=eAa4ination A5ent Balanban 2#. state03 AAA AAA AAA. M No:% of cou#se% this ent#ap4ent ope#ation% 1ou 4a0e ce#tain p#epa#ation to 4a7e su#e that 1ou :oul0 be able to 5athe# e,i0ence in suppo#t of the ent#ap4entW A /es si#. M As a 4atte# of fact 1ou e,en b#ou5ht photo5#aphe# fo# the pu#poseW A That is #i5ht si#. M An0 that photo5#aphe# :as p#ecisel1 b#ou5ht alon5 to #eco#0 the ent#ap4entW A /es si#. M .#o4 the be5innin5 to the en0% that :as the pu#poseW A At the ti4e of the a##est si#. ATT/. 2-MENE(3 .#o4 the ti4e of the han0in5 o,e# of the en,elopes until the ent#ap4ent :oul0 ha,e been te#4inate0W

A Then he as7e0 2ai4e Sta. Ma#ia% 2#. if the#e is ban7 telle# eAp#ess% if he coul0 0eposit the 4one1 but M#. Sta. Ma#ia sai0% F- 0o not ha,e% - onl1 ha,e c#e0it ca#0s.FH! I Petitione# inten0e0 to 0eposit the 4one1 in his o:n account not that of M#. Sta. Ma#ia% 2#. @e :as 4e#el1 inBui#in5 f#o4 the latte# if the#e :as an eAp#ess telle# nea#b1 :he#e he coul0 4a7e the 0eposit. M#. Sta. Ma#ia 2#. hi4self testifie0 as follo:s3 26

A No si# :e plan to ta7e the photo5#aph onl1 0u#in5 the a##est because if :e ta7e photo5#aphs he :oul0 be ale#te0 0u#in5 the han0in5 of the en,elopes. 8Un0e#sco#in5 ou#s.9 M So 1ou 0i0 not inten0 to ta7e photo5#aphs of the act of han0in5 of the en,elopes to the suspectW A ;e inten0e0 but 0u#in5 that ti4e :e cannot ta7e photo5#aphs at the ti4e of the han0in5 because the flash :ill ale#t the suspect. 8-talics ou#s.9 2UST-CE ESCAREA'3 ;h1 0i0 1ou not position the photo5#aphe# to a fa# 0istance place :ith ca4e#a :ith telescopic lensW A ;e 0i0 not /ou# @ono#. ATT/. 2-MENE(3 So :as it 1ou# intention to ta7e photo5#aphs onl1 at the ti4e that he is al#ea01 bein5 a##este0W A /es si#.H!2I AAA Petitione# insists that :hen his han0s :e#e place0 un0e# ult#a=,iolet li5ht% both :e#e foun0 ne5ati,e fo# flou#escent po:0e#. This is petitione#>s o:n conclusion :hich is not suppo#te0 b1 e,i0ence. Such self=se#,in5 state4ent :ill not p#e,ail o,e# the clea# an0 co4petent testi4on1 an0 the #epo#tH!!I sub4itte0 b1 the fo#ensic eApe#t of the NB- Ms. )e4elen R. 0ela C#u6% :ho :as the one :ho con0ucte0 the test an0 foun0 petitione#>s #i5ht pal4a# han0 positi,e fo# fluo#escent po:0e#% the sa4e han0 he use0% acco#0in5 to :itnesses Resoso an0 Sta. Ma#ia 2#.% to 5et the 4one1 f#o4 the latte#. AAA AAA AAA. M M#s. 0ela C#u6 since :hen ha,e 1ou been a .o#ensic Che4ist at NB-W A Since 1"?1 si#. 2UST-CE ESCAREA'3 M B1 the :a1% is the 0efense :illin5 to a04it that the :itness is a co4petent as ...... ATT/. 2-MENE(3 A04itte0 /ou# @ono#. 27

PROS. CAO-'-3 Ma0a4 ;itness 0i0 1ou con0uct a fo#ensic eAa4ination in the pe#son of one )a,e P#ecla#o 1 2a4balosW A /es si#. M -f that pe#son :ho4 1ou eAa4ine0 is he#e in cou#t :oul0 1ou be able to #eco5ni6e hi4W ATT/. 2-MENE(3 ;e a04it that the accuse0 is the one eAa4ine0 b1 the :itness. ATT/. CAO-'-3 )i0 1ou p#epa#e the #esult of the eAa4ination in :#itin5W A /es si#. PROS. CAO-'-3 Sho:in5 to 1ou Ph1sic EAa4ination No. " ="$1 :hich fo# pu#poses of i0entification has al#ea01 been 4a#7e0 as EAh. @ :hat #elation has this ha,e :ith the #epo#t that 1ou 4entione0 a :hile a5oW A This is the sa4e #epo#t that - p#epa#e0 si#. M @o: 0i0 1ou con0uct such flou#escent eAa4inationW A The left an0 #i5ht han0s of the accuse0 :e#e place0 un0e# the ult#a ,iolet la4p si#. M ;hat :as the #esultW A -t 5a,e a... un0e# the ult#a ,iolent la4p the pal4e# han0s of the suspect 5a,e positi,e #esult fo# the p#esence of flou#escent po:0e#. M ;hat pal4a# han0sW A Ri5ht han0 si#. M ;hat othe# eAa4ination 0i0 1ou con0uctW A An0 also the clothin5% consistin5 of the t=shi#ts an0 the pants :e#e eAa4ine0. Un0e# the ult#a ,iolet la4p the p#esence of the flou#escent po:0e# of the t=shi#ts an0 pants cannot be seen o# 0istin5uishe0 because the fibe#s o# the 4ate#ial of the cloth un0e# the ult#a ,iolet la4p :as flou#esce.

M Please tell the Cou#t :h1 the t=shi#ts an0 pants un0e# the ult#a ,iolent la4p :as flou#esceW A The 4ate#ials o# the fibe#s of the clothin5s it coul0 ha,e been 01e0 :ith flou#escent 01es si#.H!<I AAA AAA AAA. ;hat :e fin0 i4p#obable an0 cont#a#1 to hu4an eApe#ience is petitione#>s clai4 that he :as set up b1 En5#. Sta. Ma#ia S#. an0 En5#. Resoso fo# no othe# pu#pose but #e,en5e on account of petitione#>s failu#e to #eco44en0 the Sta. Ma#ia Const#uction to pe#fo#4 the eAt#a elect#ical :o#7s.H!&I The San0i5anba1an has aptl1 #ule0 on this 4atte#% thus3 .o# anothe#% the clai4 of accuse0 that the#e :as ill=:ill on the pa#t of the const#uction co4pan1 is ha#0l1 plausible. -t is hi5hl1 i4p#obable fo# the co4pan1 to e4ba#7 on a 4alicious p#osecution of an innocent pe#son fo# the si4ple #eason that such pe#son ha0 #eco44en0e0 the se#,ices of anothe# const#uction fi#4. An0 it is eAt#e4el1 i4possible fo# such co4pan1 to enlist the coope#ation an0 e4plo1 the se#,ices of the 5o,e#n4ent>s chief in,esti5ati,e a5enc1 fo# such an ano4alous un0e#ta7in5. -t is 4o#e in acco#0 :ith #eason an0 lo5ic to p#esuppose that the#e :as so4e so#t of a 4ischie,ous 0e4an0 4a0e b1 the accuse0 in eAchan5e fo# ce#tain fa,o#able consi0e#ations% such as% fa,o#able #eco44en0ation on the co4pleteness of the p#oCect% hassle=f#ee #elease of fun0s% e#asu#e of 0e0ucti,es% etc. -n0ee0% the #ationale fo# the occu##ence of the 4eetin5 an0 the 0e4an0 fo# 4one1 is infinite an0 boun0less.H!$I As co##ectl1 pointe0 out b1 the Solicito# Gene#al% En5#. Sta. Ma#ia S#.% :ho :as then en5a5e0 in the const#uction of anothe# )OST buil0in5% :oul0 not #is7 his business o# li,elihoo0 Cust to eAact #e,en5e :hich is neithe# p#ofitable no# lo5ical. As :e aptl1 state0 in Male5 ,. San0i5anba1an3H!DI -t is ha#0 to belie,e that the co4plainant :ho is a cont#acto# :oul0 Ceopa#0i6e an0 p#eCu0ice his business inte#ests an0 #is7 bein5 blac7liste0 in 5o,e#n4ent inf#ast#uctu#e p#oCects% 7no:in5 that :ith the institution of the case% he 4a1 fin0 it no lon5e# a0,isable no# p#ofitable to continue in his const#uction ,entu#es. -t is ha#0l1 p#obable that the co4plainant :oul0 :ea,e out of the blue a se#ious accusation Cust to #etaliate an0 ta7e #e,en5e on the accuse0. 28

.#o4 the fo#e5oin5% the conclusion is inescapable that on the basis of the testi4onial an0 0ocu4enta#1 e,i0ence p#esente0 0u#in5 the t#ial% the 5uilt of petitione# has been establishe0 be1on0 #easonable 0oubt. ;@ERE.ORE% the appeale0 0ecision of the San0i5anba1an is he#eb1 A..-RME). SO OR)ERE). Pa0illa% 8Chai#4an9% )a,i0e% 2#.% Bellosillo% an0 @e#4osisi4a% 2#.% 22.% concu#.