Friday, December 6, 2013

Rule 108 viz. Art. 170, Family Code - impugning legitimacy of a child.

This post contains the legal/jurisprudential parts of a petition our law office has filed with the Supreme Court in re: the legal interplay of Rule 108 (correction entries in a birth certificate) vis-a-vis  Art. 170, Family Code (period to impugn legitimacy of a child). The legal research part thereof may be of help to our readers.



“x x x.

INTRODUCTION

1.      The subject matter of this Rule 45 petition is the ORDER, dated xxx, of public respondent Hon. xxx, Presiding Judge of the Regional Trial Court (RTC), Branch xxx, of xxx City, a legible duplicate original copy of which, as received on xxx by the petitioner, thru his undersigned counsel, together with its original improvised letter envelope, are marked as Annexes ”A” to “A-2” hereof.

Sec. 1 of Rule 45 allows the petitioner a direct access to this Honorable Court from the RTC if the issue raised is a PURELY LEGAL ONE.


PARTIES

X x x.

MATERIAL DATES

2.    On xxx the petitioner filed a PETITION with the RTC, Branch xxx, xxx City, invoking Rule 108 of the Rules of Court, a duplicate original copy of which is attached as Annexes “B” to “B-22” hereof, seeking the following prayers, to wit:


“WHEREFORE, premises considered, it is respectfully prayed that:

1.       The relevant paternity-related entries in the Certificate of Live Birth of minor child xxx, registered in the Civil Registry of xxx City on xxx under Registry No. xxx be CORRECTED by:

1.1.            DELETING the following entries therefrom, to wit:  

Entries under “Father”:

X x x.

1.2.          CORRECTING the following entry under the “child”, to wit:

X x x.

2.     The Local Civil Registrar of xxx City be directed to effect the above-mentioned corrections of entries in the birth certificate of the subject minor child.

3.    The paternal surname xxx of the said minor child be corrected by DELETING the said paternal surname xxx and by REPLACING the same with the maiden maternal surname xxx of his  biological mother/respondent xxx.


4.    The petitioner be declared by the Court to be free and liberated from any and all legal responsibilities and liabilities attributable or accruing to, or must be followed and observed by, a legitimate father in relation to a  legitimate child under the Civil Code, Family Code, and other relevant existing laws, including but not limited to the duty of financial support to the minor child.

     Petitioner also prays for such and other reliefs as may be deemed just and equitable in the premises.”

3.    Today, December 5, 2013, the petitioner, by counsel, received a duplicate original copy of the ORDER, dated xxx, of Judge xxx of RTC, Branch xxx, xxx City, a legible duplicate original copy of which, as received on xxx by the petitioner, thru his undersigned counsel, together with its original improvised letter envelope, are marked as Annexes ”A” to “A-2” hereof, supra.  

The questioned Order is quoted in full below, to wit:


O R D E R

Petitioner filed the present case pursuant to Rule 108 of the Rules of Court seeking the deletion of all the details on “Father” entered in the Certificate of Live Birth of the minor xxx, alleging that said minor is not his child.

          A perusal of the allegations of the petition shows that it is an action to impugn the legitimacy of the minor child.  Thus, it should have been filed under Articles 166 to 170 of the Family Code which refer to an action directly impugning the legitimacy of a child.

          Even if the court should consider the present petition as filed under the aforementioned provisions of the Family Code, it should not prosper just the same on the ground of prescription.  Article 170 of the Family Code provides, to wit:

“Art. 170.  The action to impugn the legitimacy of the child shall be brought within one year from the knowledge of the birth or its recording in the civil register, if the husband or, in a proper case, any of his heirs, should reside in the city or municipality where the birth took place or was recorded.

If the husband or, in his default, all of his heirs do not reside at the place of birth as defined in the first paragraph or where it was recorded, the period shall be two years if they should reside in the Philippines; and three years if abroad.  If the birth of the child has been concealed from or was unknown to the husband or his heirs, the period shall be counted from the discovery  or knowledge of the birth of the child or of the fact of registration of said birth, whichever is earlier.

          The minor xxx was born on xxx and his facts of birth were registered with the Local Civil Registrar of Urdaneta City, Pangasinan on xxx.  Thus, petitioner only had until xxx, at the latest, to file the necessary action to impugn the legitimacy of the minor child.  The present case, however, was filed only on xxx.

          WHEREFORE, the petition is hereby DISMISSED, for not being the proper remedy and on the ground of prescription.

          SO ORDERED”.


It will be noted that under Sec. 1, Rule 109 (APPEALS IN SPECIAL PROCEEDINGS), in re: Orders or judgments from which appeals may be taken, it is provided that an interested person may appeal in special proceedings from an order or judgment rendered by a Regional Trial Court,  where such order or judgment, inter alia, “(f)  Is the final order or judgment rendered in the case, and affects the substantial rights of the person appealing, unless it be an order granting or denying a motion for a new trial or for reconsideration.”

The petitioner has 15 days from today, xxx, or until xxx, to file this petition with this Honorable Court. Hence, this petition.


STATEMENT OF THE MATTERS INVOLVED

X x x.

 4.    In the interest of truth and justice, and as allowed by Rule 108, this petition is intended to correct the fake, simulated, illegal and baseless entries in the birth certificate of the minor xxx, whose paternity and filiation have been unlawfully caused to be recorded by the respondent mother, xxx, in the Local Civil Registrar (LCR) of xxx City, xxx, to make it appear that the Petitioner is the legitimate father of the said minor child xxx.


THE SOLE AND PURELY LEGAL ISSUE
RAISED IN THE PETITION

5.     The sole purely legal issue raised in this petition is as follows:

WHETHER OR NOT THE ORDER, DATED xxx, OF THE TRIAL COURT SHOULD BE UPHELD BY THIS HONORABLE COURT.

Otherwise stated, the sole purely legal issue is as follows:

WHETHER OR NOT RULE 108 WAS A PROPER REMEDY WHEN THE PERIOD PROVIDED IN ARTICLE 170 OF THE FAMILY CODE (TO IMPUGN THE LEGITIMACY OF A CHILD) HAD EXPIRED.


REASONS AND ARGUMENTS RELIED UPON
FOR THE ALLOWANCE OF THE PETITION

6.    There is no question that Art. 170 of the Family Code provides that “he action to impugn the legitimacy of the child shall be brought within one year from the knowledge of the birth or its recording in the civil register, if the husband or, in a proper case, any of his heirs, should reside in the city or municipality where the birth took place or was recorded”; that “if the husband or, in his default, all of his heirs do not reside at the place of birth as defined in the first paragraph or where it was recorded, the period shall be two years if they should reside in the Philippines; and three years if abroad”; that “if the birth of the child has been concealed from or was unknown to the husband or his heirs, the period shall be counted from the discovery  or knowledge of the birth of the child or of the fact of registration of said birth, whichever is earlier.”

7.     Rule 108 is a special remedy or proceeding allowed by the Supreme Court to remedy an INJUSTICE and to promote NATURAL JUSTICE AND EQUITY, as  in the case of Art. 170, supra, where the period allowed to impugn the legitimacy of a child had expired. Rule 108 is NOT INCOMPATIBLE with Art. 170 insofar as available procedural remedies under the Rules of Court are concerned. Otherwise, the Petitioner would be denied of his basic rights to DUE PROCESS OF LAW,  EQUAL PROTECTION OF THE LAW, and ACCESS TO THE COURTS to seek a judicial remedy for an injustice he has suffered and continues to suffer. If we follow the logic of the trial court, the petitioner is now forced and indeed has no other fair and equitable choice and option but to honor and recognize a child who is not his biological child, per the initial DNA test conducted for the purpose, the same to be maintained by him as a part of his genetic, hereditary and historical bloodline and his very own future, with all its adverse biological, economic, and sociological consequences.

8.     Rule 108 provides that “any person interested in any act, event, order or decree concerning the civil status of persons which has been recorded in the civil register, may file a verified petition for the cancellation or correction of any entry relating thereto, with the Regional Trial Court of the province where the corresponding civil registry is located” (Sec.1) ; that  “entries subject to cancellation or correction.—Upon good and valid grounds, the following entries in the civil register may be cancelled or corrected: (a) births; (b) marriages; (c) deaths; (d) legal separations; (e) judgments of annulments of marriage; (f)   judgments   declaring   marriages   void   from   the   beginning; (g)  legitimations; (h) adoptions; (i) acknowledgments of natural children; (j) naturalization; (k) election, loss or recovery of citizen­ship; (1) civil interdiction; (m) judicial determination of filiation; (n) voluntary emancipation of a minor; and (o) changes of name” (Sec. 2); that “when cancellation or correction of an entry in the civil register is sought, the civil registrar and all persons who have or claim any interest which would be affected thereby shall be made parties to the proceeding” (Sec. 3); that “upon the filing of the petition, the court shall, by an order, fix the time and place for the hearing of the same, and cause reasonable notice thereof to be given to the persons named in the petition” and that ”the court shall also cause the order to be published once a week for three (3) consecutive weeks in a newspaper of general circulation in the province” (Sec.4); that “the civil registrar and any person having or claiming any interest under the entry whose cancellation or correction is sought may, within fifteen (15) days from notice of the petition, or from the last date of publication of such notice, file his opposition thereto” (Sec. 5); that “the court in which the proceedings is brought may make orders expediting the proceedings, and may also grant preliminary injunction for the preserva­tion of the rights of the parties pending such proceedings” (Sec. 6); and that “after hearing, the court may either dismiss the petition or issue an order granting the cancellation or correction prayed for” and that “in either case, a certified copy of the judgment shall be served upon the civil registrar concerned who shall annotate the same in his record”. (Sec. 7).

9.   The 2001 case of “MARCELO LEE, ALBINA LEE-YOUNG, MARIANO LEE, PABLO LEE, HELEN LEE, CATALINO K. LEE, EUSEBIO LEE, EMMA LEE, and TIU CHUAN, petitionersvs. COURT OF APPEALS and HON. LORENZO B. VENERACION and HON. JAIME T. HAMOY, in their capacities as Presiding Judge of Branch 47, Regional Trial Court of Manila and Branch 130, Regional Trial Court of Kalookan City, respectively and RITA K. LEE, et. al., G.R. No. 118387,  October 11, 2001” is instructive.
In the said case, the Petitioners contended that resort to Rule 108 of the Revised Rules of Court was improper since private respondents sought to have the entry for the name of petitioners’ mother changed from “Keh Shiok Cheng” to “Tiu Chuan” who was a completely different
person.  What private respondents therefore sought was not merely a correction in name but a declaration that petitioners were not born of Lee Tek Sheng’s legitimate wife, Keh Shiok Cheng, but of his mistress, Tiu Chuan, in effect a “bastardization of petitioners.”[16] Petitioners thus label private respondents’ suits before the lower courts as a collateral attack against their legitimacy in the guise of a Rule 108 proceeding.
Debunking petitioners’ above contention, the Court of Appeals observed that the proceedings were simply aimed at establishing a particular fact, status and/or right.  Stated differently, the thrust of said proceedings was to establish the factual truth regarding the occurrence of certain events which created or affected the status of persons and/or otherwise deprived said persons of rights.
The Court held: “It is precisely the province of a special proceeding such as the one outlined under Rule 108 of the Revised Rules of Court to establish the status or right of a party, or a particular fact. The petitions filed by private respondents for the correction of entries in the petitioners’ records of birth were intended to establish that for physical and/or biological reasons it was impossible for Keh Shiok Cheng to have conceived and given birth to the petitioners as shown in their birth records.  Contrary to petitioners’ contention that the petitions before the lower courts were actually actions to impugn legitimacy, the prayer therein is not to declare that petitioners are illegitimate children of Keh Shiok Cheng, but to establish that the former are not the latter’s children.  There is nothing to impugn as there is no blood relation at all between Keh Shiok Cheng and petitioners.”
Further sanctioning private respondents’ resort to Rule 108, the Court of Appeals adverted to a ruling of the Supreme Court in the leading case of Republic vs. Valencia, 141 SCRA 462 (1986), where the Supreme Court affirmed the decision of Branch XI of the then Court of First Instance (CFI) of Cebu City ordering the correction in the nationality and civil status of petitioner’s minor children as stated in their records of birth from “Chinese” to “Filipino”, and “legitimate” to “illegitimate”, respectively.  Although recognizing that the changes or corrections sought to be effected were not mere clerical errors of a harmless or innocuous nature, the Court, sitting en banc, held therein that even substantial errors in a civil register may be corrected and the true facts established provided the parties aggrieved by the error avail themselves of the appropriate adversary proceeding. In the said case, the Supreme Court also laid down the rule “that a proceeding for correction and/or cancellation of entries in the civil register under Rule 108 ceases to be summary in nature and takes on the characteristics of an appropriate adversary proceeding when all the procedural requirements under Rule 108 are complied with.”  
The petitioners assert, however, that making the proceedings adversarial does not give trial courts the license to go beyond the ambit of Rule 108 which is limited to those corrections contemplated by
Article 412 of the New Civil Code or mere clerical errors of a harmless or innocuous nature.[24] The petitioners point to the case of Labayo-Rowe vs. Republic,[25] which is of a later date than Republic vs. Valencia,[26] where this Court reverted to the doctrine laid down in earlier cases,[27] starting with Ty Kong Tin vs. Republic,[28]prohibiting the extension of the application of Rule 108 beyond innocuous or harmless changes or corrections. Petitioners contend that as held in Go, et al. vs. Civil Registrar,[29] allowing substantial changes under Rule 108 would render the said rule unconstitutional as the same would have the effect of increasing or modifying substantive rights.
The Supreme Court pointed out that in the cited case of Labayo-Rowe vs. Republic,[30] the reason it declared null and void the portion of the lower court’s order directing the change of Labayo-Rowe’s civil status and the filiation of one of her children as appearing in the latter’s record of birth, is not because Rule 108 was inappropriate to effect such changes, but because Labayo-Rowe’s petition before the lower court failed to implead all indispensable parties to the case.
Far from petitioners’ theory, the Court’s ruling in Labayo-Rowe vs. Republic[32] “did not exclude recourse to Rule 108 of the Revised Rules of Court to effect substantial changes or corrections in entries of the civil register.”  The Court added that “the only requisite is that the proceedings under Rule 108 be an appropriate adversary proceeding as contra-distinguished from a summary proceeding.”  
The Court held that while it is true that in special proceedings formal pleadings and a hearing may be dispensed with, and the remedy granted upon mere application or motion.  But this is not always the case, as when the statute expressly provides.[34] Hence, a special proceeding is not always summary, the Court stated.  One only has to take a look at the procedure outlined in Rule 108 to see that what is contemplated therein is not a summary proceeding per se.  It held that: “Rule 108 requires publication of the petition three (3) times, i.e., once a week for three (3) consecutive weeks (Sec. 4). The Rule also requires inclusion as parties of all persons who claim any interest which would be affected by the cancellation or correction (Sec. 3).  The civil registrar and any person in interest are also required to file their opposition, if any, within fifteen (15) days from notice of the petition, or from the last date of publication of such notice (Sec. 5).  Last, but not the least, although the court may make orders expediting the proceedings, it is after hearing that the court shall either dismiss the petition or issue an order granting the same (Sec. 7).”
The Court added: “It is beyond doubt that the specific matters covered by the preceding provisions include not only status but also nationality. Therefore, the Ty Kong Tin pronouncement that Article 412 does not contemplate matters that may affect civil status, nationality or citizenship is erroneous.  This interpretation has the effect of isolating
Article 412 from the rest of the articles in Title XVI, Book I of the New Civil Code, in clear contravention of the rule of statutory construction that a statute must always be construed as a whole such that the particular meaning to be attached to any word or phrase is ascertained from the context and the nature of the subject treated.[46].”
Thirdly, Republic Act No. 9048[47] which was passed by Congress on February 8, 2001 substantially amended Article 412 of the New Civil Code, to wit:
“SECTION 1. Authority to Correct Clerical or Typographical Error and Change of First Name or Nickname.- No entry in a civil register shall be changed or corrected without a judicial order, except for clerical or typographical errors and change of first name or nickname which can be corrected or changed by the concerned city or municipal civil registrar or consul general in accordance with the provisions of this Act and its implementing rules and regulations.”
The above law speaks clearly.  Clerical or typographical errors in entries of the civil register are now to be corrected and changed without need of a judicial order and by the city or municipal civil registrar or consul general.  The obvious effect is to remove from the ambit of Rule 108 the correction or changing of such errors in entries of the civil register.  Hence, what is left for the scope of operation of Rule 108 are substantial changes and corrections in entries of the civil register.  This is precisely the opposite of what Ty Kong Tin and other cases of its genre had said, perhaps another indication that it was not sound doctrine after all.”

The Court also held that: “It may be very well said that Republic Act No. 9048 is Congress’ response to the confusion wrought by the failure to delineate as to what exactly is that so-called summary procedure for changes or corrections of a harmless or innocuous nature as distinguished from that appropriate adversary proceeding for changes or corrections of a substantial kind.  For we must admit that though we have constantly referred to an appropriate adversary proceeding, we have failed to categorically state just what that procedure is.  Republic Act No. 9048 now embodies that summary procedure while Rule 108 is that appropriate adversary proceeding.  Be that as it may, the case at bar cannot be decided on the basis of Republic Act No. 9048 which has prospective application.  Hence, the necessity for the preceding treatise.”
On another point, the Court in the abovecited case held that Article 171 of the Family Code showed  that it applied to instances in which the father impugned the legitimacy of his wife’s child.  The provision, however, presupposes that the child was the undisputed offspring of the mother.  It added: “The present case alleges and shows that Hermogena did not give birth to petitioner.  In other words, the prayer therein is not to declare that petitioner is an illegitimate child of Hermogena, but to establish that the former is not the latter’s child at all. x x x.[51]
Similarly, in Benitez-Badua vs. Court of Appeals[52], the Court held that Articles 164, 166, 170 and 171 of the Family Code were inapplicable. 
It stated that: “A careful reading of the above articles will show that they do not contemplate a situation, like in the instant case, where a child is alleged not be the child of nature or biological child of a certain couple.  Rather, these articles govern a situation where a husband (or his heirs) denies as his own a child of his wife.  Thus, under Article 166, it is the husband who can impugn the legitimacy of said child by proving: (1) it was physically impossible for him to have sexual intercourse, with his wife within the first 120 days of the 300 days which immediately preceded the birth of the child; (2) that for biological or other scientific reasons, the child could not have been his child; (3) that in case of children conceived through artificial insemination, the written authorization or ratification by either parent was obtained through mistake, fraud, violence, intimidation or undue influence.  Articles 170 and 171 reinforce this reading as they speak of the prescriptive period within which the husband or any of his heirs should file the action impugning the legitimacy of said child.  Doubtless then, the appellate court did not err when it refused to apply these articles to the case at bench.  For the case at bench is not one where the heirs of the late Vicente are contending that petitioner is not his child by Isabel. Rather, their clear submission is that petitioner was not born to Vicente and Isabel.”  
The Court’s ruling in Cabatbat-Lim vs. Intermediate Appellate Court, 166 SCRA 451, 457, was apropos, viz:  “Petitioners’ recourse to Article 263 of the New Civil Code [now Art. 170 of the Family Code] is not well taken.  This legal provision refers to an action to impugn legitimacy.  It is inapplicable to this case because this is not an action to impugn the legitimacy of a child, but an action of the private respondents to claim their inheritance as legal heirs of their childless deceased aunt.  They do not claim that petitioner Violeta Cabatbat Lim is an illegitimate child of the deceased, but that she is not the decedent’s child at all.  Being neither legally adopted child, nor an acknowledged natural child, nor a child by legal fiction of Esperanza Cabatbat, Violeta is not a legal heir of the deceased.’”[53]

 On a final point, the Court said the Petitioners claimed that private respondents’ cause of action had already prescribed as more than five (5) years had lapsed between the registration of the latest birth among the petitioners in 1960 and the filing of the actions in December of 1992 and February of 1993.[54]. The Court disagreed
The Court held: “As correctly pointed out by the Court of Appeals, inasmuch as no law or rule specifically prescribes a fixed time for filing the special proceeding under Rule 108 in relation to Article 412 of the New Civil Code, it is the following provision of the New Civil Code that applies: “Art. 1149.  All other actions whose periods are not fixed in this Code or in other laws must be brought within five years from the time the right of action accrues.”
The Court stated: “The right of action accrues when there exists a cause of action, which consists of three (3) elements, namely: a) a right in favor of the plaintiff by whatever means and under whatever law it arises or is created; b) an obligation on the part of the defendant to respect such right; and c) an act or omission on the part of such defendant violative of the right of the plaintiff.  It is only when the last element occurs or takes place that it can be said in law that a cause of action has arisen.[55].”
The Court continued: “It is indubitable that private respondents have a cause of action.  The last element of their cause of action, that is, the act of their father in falsifying the entries in petitioners’ birth records, occurred more than thirty (30) years ago.  Strictly speaking, it was upon this occurrence that private respondents’ right of action or right to sue accrued.  However, we must take into account the fact that it was only sometime in 1989 that private respondents discovered that they in fact had a cause of action against petitioners who continue to use said falsified birth records.”
The Court stressed: “Hence, it would result in manifest injustice if we were to deprive private respondents of their right to establish the truth about a fact, in this case, petitioners’ true mother, and their real status, simply because they had discovered the dishonesty perpetrated upon them by their common father at a much later date.  This is especially true in the case of private respondents who, as their father’s legitimate children, did not have any reason to suspect that he would commit such deception against them and deprive them of their sole right to inherit from their mother’s (Keh Shiok Cheng’s) estate.  It was only sometime in 1989 that private respondents’ suspicions were aroused and confirmed.  From that time until 1992 and 1993, less than five (5) years had lapsed.”

 The Court added: “Petitioners would have us reckon the five-year prescriptive period from the date of the registration of the last birth among the petitioners-siblings in 1960, and not from the date private respondents had discovered the false entries in petitioners’ birth records in 1989.  Petitioners base their position on the fact that birth records are public documents, hence, the period of prescription for the right of action available to the private respondents started to run from the time of the registration of their birth certificates in the Civil Registry. We cannot agree with petitioners’ thinking on that point. It is true that the books making up the Civil Register and all documents relating thereto are public documents and shall be prima facie evidence of the facts therein contained.[56] Petitioners liken their birth records to land titles, public documents that serve as notice to the whole world.  Unfortunately for the petitioners, this analogy does not hold water.  Unlike a title to a parcel of land, a person’s parentage cannot be acquired by prescription.  One is either born of a particular mother or not.  It is that simple.”


RELIEF


WHEREFORE, premises considered, it is respectfully prayed that the questioned Order, dated xxx, of the trial court be reversed and set aside and that the original case below be revived to proceed on the merits thereof following the procedures set by Rule 108.

FURTHER, the petitioner prays for such and other reliefs as may be deemed just and equitable in the premises.

          Las Pinas City, x  x  x.




LASERNA CUEVA-MERCADER
& ASSOCIATES LAW OFFICES
Counsel for the Petitioner
Unit 15, Star Arcade, C. V. Starr Avenue
Philamlife Village, Las Pinas City
Tel. Nos. 872-5443; 846-2539

Fax No. 846-2539

x x x."

Friday, November 29, 2013

Pari delicto doctrine and insider trading | Inquirer Business

see - Pari delicto doctrine and insider trading | Inquirer Business


"x x x.

Point of Law

Pari delicto doctrine and insider trading

By 
, 11/28/13
 1 19 14

In my Oct. 31 column, I wrote about a Supreme Court case that used the pari delicto doctrine to prevent a broker from recovering the unpaid purchase price of stock market trades, which it made for a client in violation of the mandatory closeout rule under the Revised Securities Act (Abacus Securities Corp. vs. Ampil [483 SCRA 315, 27 February 2006]).

Can the case be applied to other market transactions, such as insider trading? For example, if an investor trades on the basis of nonpublic material information given to him by a listed company or his broker, and he sustains damages because the so-called inside information turns out to be false, can he sue them for damages? Can the company and broker raise the pari delicto defense to bar the client from recovering damages from them?

There is a precedent from the Supreme Court of the United States for this situation. In Bateman Eichler v. Berner (472 US 299 (1985]), Lazzaro, an employee of a stock brokerage firm (Bateman), falsely represented that he had some inside information on the growth prospects of a company. He induced several clients of Bateman to purchase stock in the company. The investors alleged that they inquired from the president of the company (Neadeau) whether Lazzaro’s tips were accurate. Neadeau stated that the information was “not public knowledge” and “would neither confirm nor deny those claims,” but allegedly advised clients that “Lazzaro was very trustworthy and a good man.”

Claiming that they incurred substantial trading losses as a result of the conspiracy between Lazzaro and Neadeau, the investors later sued for damages based on Rule 10b-5, which was the governing law for insider trading in the United States. Bateman contended that, since the clients had themselves attempted to trade based on insider, albeit incorrect, information, they were barred from recovering damages under the pari delicto defense.
The issue was whether the pari delicto defense precluded investors from suing the tipping insider for stock fraud.
Speaking through Justice Brennan, the US Supreme Court ruled that the pari delicto defense did not preclude the investors from suing the tipping insider and stockbroker for fraud. Traditionally, the defense precluded recovery by a wrongdoing plaintiff on the notion that courts should not lend aid to wrongdoers. However, the doctrine will not bar a suit where (1) the defendant’s wrongdoing equals or outweighs the plaintiff’s, and (2) allowing the suit will serve important public purposes.

The Supreme Court held that insiders and broker-dealers who selectively disclose material nonpublic information commit a potentially broader range of violations than the investors, or tippees, who trade on the basis of that information. A tippee trading on inside information will, almost always, be guilty of fraud against individual shareholders, a violation for which the tipper shares responsibility. But the insider, in disclosing such information, also breaches fiduciary duties toward the issuer itself.

The Court held that, denying the in pari delicto defense would best promote protection of the investing public and the national economy. First, it promotes the important goal of exposing wrongdoers. Second, deterrence of insider trading most frequently will be maximized by bringing enforcement pressures to bear on the sources of such information—corporate insiders and broker-dealers. Third, insiders and broker-dealers often will be more responsive to the deterrent pressures of potential sanctions. Finally, there are means other than the in pari delicto defense to deter tippee trading. Although there might well be situations in which the relative culpabilities of tippees and their sources merit a different mix of deterrent incentives, in cases such as the instant one, the public interest will most frequently be advanced if defrauded tippees are permitted to expose illegal practices by corporate insiders and broker-dealers.

Whether or not our courts of law will apply the Bateman decision in the Philippine context remains to be seen. As we lawyers know, foreign court decisions only have a persuasive, not binding, effect on Philippine courts.

(The author, formerly president and chief executive officer of the Philippine Stock Exchange, is now co-managing partner and head of corporate and special projects department of the Angara Abello Concepcion & Regala Law Offices (Accralaw). The views in this column are solely the author’s and should not in any way be attributed to Accralaw. The author may be contacted through francis.ed.lim@gmail.com.)

x x x."

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Appeal procedure in labor cases -


A.C. No. 9698. November 13, 2013
Rolando E. Cawaling Vs. Napoleon M. Menese, et al.

"x x x.

The pertinent portions of Sections 4 and 6, Rule VI of the Revised Rules of Procedure of the NLRC read:

SECTION 4. REQUISITES FOR PERFECTION OF APPEAL – a) The appeal shall be: (1) filed within the reglementary period provided in Section 1 of this Rule; (2) verified by the appellant himself in accordance with Section 4, Rule 7 of the Rules of Court, as amended; (3) in the form of a memorandum of appeal which shall state the grounds relied upon and the arguments in support thereof, the relief prayed for, and with a statement of the date the appellant received the appealed decision, resolution or order; (4) in three (3) legibly typewritten or printed copies; and (5) accompanied by i) proof of payment of the required appeal fee and legal research fee; ii) posting of a cash or surety bond as provided in Section 6 of this Rule; iii) a certificate of non-forum shopping; and iv) proof of service upon the other parties.

SECTION 6. BOND. - In case the decision of the Labor Arbiter or the Regional Director involves a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond. The appeal bond shall either be in cash or surety in an amount equivalent to the monetary award, exclusive of damages and attorney’s fees.

In case of surety bond, the same shall be issued by a reputable bonding company duly accredited by the Commission or the Supreme Court, and shall be accompanied by:

(a) a joint declaration under oath by the employer, his counsel, and the bonding company, attesting that the bond posted is genuine, and shall be in effect until final disposition of the case.
(b) a copy of the indemnity agreement between the employer-appellant and bonding company; and
(c) a copy of security deposit or collateral securing the bond.

A certified true copy of the bond shall be furnished by the appellant to the appellee who shall verify the regularity and genuineness thereof and immediately report to the Commission any irregularity.

Upon verification by the Commission that the bond is irregular or not genuine, the Commission shall cause the immediate dismissal of the appeal.

No motion to reduce bond shall be entertained except on meritorious grounds and upon the posting of a bond in a reasonable amount in relation to the monetary award.

The filing of the motion to reduce bond without compliance with the requisites in the preceding paragraph shall not stop the running of the period to perfect an appeal.7

In a nutshell, the rules are explicit that the filing of a bond for the perfection of an appeal is mandatory and jurisdictional. The requirement that employers post a cash or surety bond to perfect their appeal is apparently intended to assure workers that if they prevail in the case, they will receive the money judgment in their favor upon the dismissal of the former’s appeal.

It was intended to discourage employers from using an appeal to delay, or even evade, their obligations to satisfy their employees' just and lawful claims. However, the whole essence of requiring the filing of bond is defeated if the bond issued turned out to be invalid due to the surety company's expired accreditation.

x x x."

Lawyer suspended for failure to account for client's money


A.C. No. 7965. November 13, 2013
Azucena Segovia-Ribaya Vs. Atty. Bartolome C. Lawsin

"x x x.

Anent respondent’s administrative liability, the Court agrees with the IBP that respondent’s failure to properly account for and duly return his client’s money despite due demand is tantamount to a violation of Rules 16.01 and 16.03, Canon 16 of the Code which respectively read as follows:

CANON 16 – A LAWYER SHALL HOLD IN TRUST ALL MONEYS AND PROPERTIES OF HIS CLIENT THAT MAY COME INTO HIS POSSESSION.

Rule 16.01 – A lawyer shall account for all money or property collected or received for or from the client.

Rule 16.03 – A lawyer shall deliver the funds and property of his client when due or upon demand. However, he shall have a lien over the funds and may apply so much thereof as may be necessary to satisfy his lawful fees and disbursements, giving notice promptly thereafter to his client. He shall also have a lien to the same extent on all judgments and executions he has secured for his client as provided for in the Rules of Court.

Records disclose that respondent admitted the receipt of the subject amount from complainant to cover for pertinent registration expenses but posited his failure to return the same due to his client’s act of confronting
him at his office wherein she shouted and called him names. With the fact of receipt being established, it was then respondent’s obligation to return the money entrusted to him by complainant. To this end, suffice it to state that complainant’s purported act of “maligning” respondent does not justify the latter’s failure to properly account for and return his client’s money upon due demand. Verily, a lawyer’s duty to his client is one essentially imbued
with trust so much so that it is incumbent upon the former to exhaust all reasonable efforts towards its faithful compliance. In this case, despite that singular encounter, respondent had thereafter all the opportunity to return the subject amount but still failed to do so. Besides, the obligatory force of said duty should not be diluted by the temperament or occasional frustrations of the lawyer’s client, especially so when the latter remains unsatisfied by the lawyer’s work. Indeed, a lawyer must deal with his client with professional maturity and commit himself towards the objective fulfilment of his responsibilities. If the relationship is strained, the correct course of action is for the lawyer to properly account for his affairs as well as to ensure the smooth turn-over of the case to another lawyer. Except only for the retaining lien exception 23 under Rule 16.03, Canon 16 of the Code, the lawyer should not withhold the property of his client.

Unfortunately, absent the applicability of such exception or any other justifiable reason therefor, respondent still failed to perform his duties under Rules 16.01 and 16.03, 16 of the Code which perforce warrants his administrative liability.

The Court, however, deems it proper to increase the IBP’s recommended period of suspension from the practice of law from six (6) months to one (1) year in view of his concomitant failure to exercise due diligence in handling his client’s cause as mandated by Rules 18.03 and 18.04, Canon 18 of the Code:

CANON 18 - A LAWYER SHALL SERVE HIS CLIENT WITH
COMPETENCE AND DILIGENCE.

Rule 18.03 - A lawyer shall not neglect a legal matter entrusted to him, and his negligence in connection therewith shall render him liable. 


Rule 18.04 - A lawyer shall keep the client informed of the status of his case and shall respond within a reasonable time to the client's request for information.

After a judicious scrutiny of the records, the Court observes that respondent did not only accomplish his undertaking under the retainer, but likewise failed to give an adequate explanation for such non-performance
despite the protracted length of time given for him to do so. As such omissions equally showcase respondent’s non-compliance with the standard of proficiency required of a lawyer as embodied in the above-cited rules, the
Court deems it apt to extend the period of his suspension from the practice of law from six (6) months to one (1) year similar to the penalty imposed in the case of Del Mundo v. Capistrano.24

As a final point, the Court must clarify that the foregoing resolution should not include a directive for the return of the amount of P31,500.00 as recommended by the IBP Board of Governors. The same amount was given
by complainant to respondent to cover for registration expenses; hence, its return partakes the nature of a purely civil liability which should not be dealt with during an administrative-disciplinary proceeding. In Tria-Samonte v.
Obias,25 the Court recently held that its “findings during administrative disciplinary proceedings have no bearing on the liabilities of the parties involved which are purely civil in nature – meaning, those liabilities which
have no intrinsic link to the lawyer's professional engagement – as the same should be threshed out in a proper proceeding of such nature.” This pronouncement the Court applies to this case and thus, renders a disposition solely on respondent’s administrative liability.

x x x."

Pork barrel system is unconstitutional - SC

Unconstitutionality of the Pork Barrel System. -

G.R. No. 208566/G.R. No. 208493/G.R. No. 209251. November 11, 2013

Greco Antonious Beda B. Belgica, et al. Vs. Hon. Executive Secretary Paquito N. Ochoa, Jr, et al./Social Justice Society (SJS) President Samson S. Alcantara Vs. Hon. Franklin M. Drilon, etc., et al./Pedrito M. Nepomuceno, etc. Vs. President Benigno Simeon C. Aquino III, et al.
Concurring Opinion - C.J. Sereno, J. Carpio, J. Leonen. 
Concurring and Dissenting Opinion - J. Brion. 


"x x x.

The Issues Before the Court -

Based on the pleadings, and as refined during the Oral Arguments, the
following are the main issues for the Court‘s resolution:

I. Procedural Issues.

Whether or not (a) the issues raised in the consolidated petitions involve an actual and justiciable controversy; (b) the issues raised in the consolidated petitions are matters of policy not subject to judicial review; (c) petitioners have legal standing to sue; and (d) the Court‘s Decision dated August 19, 1994 in G.R. Nos. 113105, 113174, 113766, and 113888, entitled ―Philippine Constitution Association v. Enriquez‖114 (Philconsa) and Decision dated April 24, 2012 in G.R. No. 164987, entitled ―Lawyers Against Monopoly and Poverty v. Secretary of Budget and Management‖115 (LAMP) bar the relitigation of the issue of constitutionality of the ―Pork Barrel System‖ under the principles of res judicata and stare decisis.

II. Substantive Issues on the “Congressional Pork Barrel.”

Whether or not the 2013 PDAF Article and all other Congressional Pork Barrel Laws similar thereto are unconstitutional considering that they violate the principles of/constitutional provisions on (a) separation of powers; (b) non-delegability of legislative power; (c) checks and balances; (d) accountability; (e) political dynasties; and (f) local autonomy.

III. Substantive Issues on the “Presidential Pork Barrel.”

Whether or not the phrases (a) ―and for such other purposes as may be hereafter directed by the President‖ under Section 8 of PD 910,116 relating to the Malampaya Funds, and (b) ―to finance the priority infrastructure development projects and to finance the restoration of damaged or destroyed facilities due to calamities, as may be directed and authorized by the Office of the President of the Philippines‖ under Section 12 of PD 1869, as amended by PD 1993, relating to the Presidential Social Fund, are unconstitutional insofar as they constitute undue delegations of legislative power.

These main issues shall be resolved in the order that they have been
stated. In addition, the Court shall also tackle certain ancillary issues as
prompted by the present cases.

x x x.

WHEREFORE, the petitions are PARTLY GRANTED. In view of the constitutional violations discussed in this Decision, the Court hereby
declares as UNCONSTITUTIONAL:

(a) the entire 2013 PDAF Article;

(b)  all legal provisions of past and present Congressional Pork Barrel Laws, such as the previous PDAF and CDF Articles and the various Congressional  Insertions, which authorize/d legislators – whether individually or collectively organized into committees – to intervene, assume or participate in any of the various post-enactment stages of the budget execution, such as but not limited to the areas of project identification, modification and revision of project identification, fund release and/or fund realignment, unrelated to the power of congressional oversight;

(c) all legal provisions of past and present Congressional Pork Barrel Laws, such as the previous PDAF and CDF Articles and the various Congressional Insertions, which conferred personal, lump-sum allocations to legislators from which they are able to fund specific projects which they themselves determine;

(d) all informal practices of similar import and effect, which the Court similarly deems to be acts of grave abuse of discretion amounting to lack or excess of jurisdiction; and

(e) the phrases (1) ―and for such other purposes as may be hereafter directed by the President‖ under Section 8 of Presidential Decree No. 910 and (2) ―to finance the priority infrastructure development projects under Section 12 of Presidential Decree No. 1869, as amended by Presidential Decree No. 1993, for both failing the sufficient standard test in violation of the principle of non-delegability of legislative power.

Accordingly, the Court‘s temporary injunction dated September 10, 2013 is hereby declared to be PERMANENT. Thus, the disbursement/release of the remaining PDAF funds allocated for the year 2013, as well as for all previous years, and the funds sourced from (1) the Malampaya Funds under the phrase ―and for such other purposes as may be hereafter directed by the President‖ pursuant to Section 8 of Presidential Decree No. 910, and (2) the Presidential Social Fund under the phrase ―to finance the priority infrastructure development projects‖ pursuant to Section 12 of Presidential Decree No. 1869, as amended by Presidential Decree No. 1993, which are, at the time this Decision is promulgated, not covered by Notice of Cash Allocations (NCAs) but only by Special Allotment Release Orders (SAROs), whether obligated or not, are hereby ENJOINED. The remaining PDAF funds covered by this permanent injunction shall not be disbursed/released but instead reverted to the unappropriated surplus of the general fund, while the funds under the Malampaya Funds and the Presidential Social Fund shall remain therein to be utilized for their respective special purposes not otherwise declared as unconstitutional.

On the other hand, due to improper recourse and lack of proper substantiation, the Court hereby DENIES petitioners‘ prayer seeking that
the Executive Secretary and/or the Department of Budget and Management be ordered to provide the public and the Commission on Audit complete lists/schedules or detailed reports related to the availments and utilization of the funds subject of these cases.

Petitioners‘ access to official documents already available and of public record which are related to these funds must, however, not be prohibited but merely subjected to the custodian‘s reasonable regulations or any valid statutory prohibition on the same. This denial is without prejudice to a proper mandamus case which they or the Commission on Audit may choose to pursue through a separate petition.

The Court also DENIES petitioners' prayer to order the inclusion of
the funds subject of these cases in the budgetary deliberations of Congress as the same is a matter left to the prerogative of the political branches of
government.

Finally, the Court hereby DIRECTS all prosecutorial organs of the
government to, within the bounds of reasonable dispatch, investigate and accordingly prosecute all government officials and/or private individuals for possible criminal offenses related to the irregular, improper and/or unlawful disbursement/utilization of all funds under the Pork Barrel System.

This Decision is immediately executory but prospective in effect.

SO ORDERED.

x x x."

Thursday, November 21, 2013

DOJ faces tough task of rebuilding court records in Yolanda-hit areas | Inquirer News

see - DOJ faces tough task of rebuilding court records in Yolanda-hit areas | Inquirer News


"xxx.

MANILA, Philippines—It will be difficult to reconstitute the records of pending cases in courts that have been battered by monster typhoon Yolanda (international name Haiyan), an official from the Department of Justice (DOJ) said Thursday.
Prosecutor General Claro Arellano said the Hall of Justice in Tacloban, Leyte alone was totally damaged by the typhoon.
“Our chance is to be able to reconstitute the records of the cases from the parties but that too will be difficult,” Arellano said.
The prosecutors’ office is housed at the Bulwagan ng Katarungan Compound in Tacloban, Leyte. Arellano said, a staff and wife of a prosecutor were reported to among the typhoon fatalities.
The Office of the Prosecutors will resume work on Monday.
“We are preparing to send typewriters and other supplies to them,” Chief Prosecutors Association (CIPROSA) head and Manila Chief Prosecutor Edward Togonon said.
The prosecutors have sent a second batch of assistance to affected prosecutors and staff this week—two trucks of relief goods and clothes, said Togonon.
Arellano said the trucks left via Batangas port Friday and arrived in Tacloban Wednesday.

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x x x."

Wednesday, November 20, 2013

SC decision restores normal constitutional order | Inquirer Opinion

see - SC decision restores normal constitutional order | Inquirer Opinion


"x x x.

As early as 1994, the constitutionality of the pork barrel, then called the Countrywide Development Fund (CDF), was challenged on the ground of violation of the rule that, although appropriating money is the function of Congress, spending it is the prerogative of the executive branch.
The Supreme Court ruled in favor of the CDF. It said that what the law allowed members of Congress to do was simply to recommend projects. If the recommended projects qualified for funding under the CDF, it was the President who would implement them.
Prior to the approval of the 1994 General Appropriations Act (GAA), pork barrel, which was recognized by the 1935 Constitution as a legitimate institution, had not received much attention. In the years from 1972 to 1986, there was no talk about pork barrel. But those were unusual years because, for all practical purposes, President Ferdinand Marcos controlled the national treasury, both pork and beef.
After the restoration of democratic processes and in the years from 1986 to 1993, pork barrel was not a hot subject of debate. It was only after the approval of the 1994 GAA that pork barrel became a frequent front-page subject for heated discussion.
What was it in the 1994 GAA that invited debate?
Earlier pork barrel laws specifically stated that the money could be released only with the approval of the President, and that the budget secretary should promulgate rules and regulations for pork barrel funds.  For as long as this was followed, there was no problem. However, such requirements were removed by the 1994 GAA, Republic Act No. 7663.
Officials concerned
RA 7663 simply said: “The fund shall be automatically released quarterly by way of Advice of Allotments and Notice of Cash Allocation directly to the assigned implementing agency not later than five (5) days after the beginning of each quarter upon submission of the list of projects and activities by the officials concerned.”
Who are these “officials concerned”? They are senators, representatives, and the Vice President. In effect, RA 7663 gave to the members of Congress control over the release of approved funds.
Whereas under the Constitution it is the President, either directly or through executive agencies, who should control the release of funds, the executive agencies awaited the go-signal of the members of Congress before they could release the funds for the projects recommended by the members of Congress.
The decision Tuesday of the Supreme Court restores the normal constitutional order of handling public money. The first destination of money coming in for the public, either as taxes or other forms of income, is the public treasury. And such money stays in the treasury until Congress determines how it is to be used.
As the Constitution says, “No money shall be paid out of the Treasury except in pursuance of an appropriation made by law.” The appropriation can be either through the general appropriations law or through special appropriations. This provision prevents members of Congress, and the President, from indiscriminately spending unappropriated money.
Now that we have the Supreme Court decision, unappropriated and unspent money will have to be returned to the general coffers of government “except for the funds covered by the Malampaya Fund and the Presidential Social Fund, which shall remain therein to be utilized for their respective special purposes not otherwise declared unconstitutional.”
Effect on President
What effect will this decision have on President Aquino’s capacity to meet emergency situations? I do not know how much money the President has in the contingency provisions for him in the general appropriations law.
Does he have the resources needed to deal with the effects of the October earthquake in Bohol and now also with the ravages caused by Supertyphoon “Yolanda?” At the rate the President is reassuring the survivors of the ravages caused by nature, he probably is confident that he has the resources. If needed, he can call Congress to a special session to appropriate what more is required.
The beneficiaries of the pork barrel will probably be unhappy with the high court’s decision. Many of them really needed what the pork barrel system had given them. That need of many remains.
The challenge now is for Congress and for the President to devise something constitutional to fill the vacuum left by the Supreme Court’s decision declaring pork barrel unconstitutional.


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x x x."

Supreme Court slays PDAF | Inquirer News

see - Supreme Court slays PDAF | Inquirer News


"x x x.

In a landmark decision that could spell the end of political patronage, the Supreme Court on Tuesday declared unconstitutional past and present congressional pork barrel laws as it ordered the criminal prosecution of individuals who had benefited from the schemes over the past two decades.
The high court, voting 14-0-1, also struck down the discretionary provisions granted the President in the use of multibillion-peso oil revenues from the Malampaya Fund and the Presidential Social Fund—the government share of revenues from the Philippine Amusement and Gaming Corp. (Pagcor).
In declaring unconstitutional the provisions on the Priority Development Assistance Fund (PDAF) in the 2013 General Appropriations Act (GAA) and its earlier incarnation, the 1990 Countrywide Development Fund (CDF), the high tribunal held that these arrangements violated the principle of separation of powers.
Reversing itself after thrice upholding the legality of the lawmakers’ pork barrel, the court said that this time it simply “allowed legislators to wield, in varying gradations, nonoversight, postenactment authority in vital areas of budget execution” and denied the President the power to veto items in the GAA.
The ruling was issued four months after the Inquirer broke the story that P10 billion in allocations from the PDAF and the Malampaya Fund meant to ease rural poverty and the plight of storm victims over the past 10 years had gone to ghost projects and massive kickbacks.
“This will surely hurt the presidency,” said Ramon Casiple, executive director of the Institute for Political and Electoral Reforms. “It means it will be very difficult for the executive and legislative branches to create discretionary funds.”
Western Samar Rep. Mel Senen Sarmiento said political patronage would have little influence now during elections. “Little by little, I hope we come to a time where people will vote based on performance.”
Unconstitutional
In its three-page ruling, the Supreme Court declared unconstitutional  the following laws and practices:
– “All legal provisions of past and present congressional pork barrel laws … which authorized legislators—whether individually or collectively organized into committees—to intervene, assume or participate in any of the various postenactment identification, modification and revision of project identification, fund release and/or fund realignment, unrelated to the power of congressional oversight.
– “All legal provisions of past and present congressional pork barrel laws, such as the previous PDAF and CDF articles and the various congressional insertions, which conferred personal, lump-sum allocations to legislators from which they are able to fund specific projects which they themselves determine.
– “All informal practices of similar import and effect, which the court similarly deems to be acts of grave abuse of discretion amounting to lack or excess of discretion.
– “The phrases (1) ‘and for such other purposes as may be hereafter directed by the President’ under Section 8 of Presidential Decree No. 910” on the use of the Malampaya Fund other than for energy development and (2) “to finance the priority infrastructure development projects” under Section 12 of PD 1869, as amended by PD 1993, for both failing the sufficient standard test in violation of the principle of nondelegability of legislative power.”
The two presidential decrees refer to a portion of revenues from Pagcor to fund projects ranging from flood control to beautification and healthcare in Metropolitan Manila authorized by the President.
Prosecution ordered
The court said a temporary restraining order issued on Sept. 10 covering the remaining PDAF allocations for the rest of the year—roughly P12 billion—and those from previous years had become permanent. It said these funds, along with the Pagcor resources, should be returned to the Treasury.
A Pagcor statement said that for the first nine months of this year, it remitted to Malacañang P2 billion of its earnings. According to the Department of Energy, the Malampaya Fund amounted to P132 billion as of June 30. It was P70 billion when President Aquino assumed office.
The Supreme Court likewise directed the government to investigate and prosecute all government officials and private individuals who have irregularly, improperly or unlawfully disbursed funds under the pork barrel system.
Associate Justice Estela Bernabe wrote the ruling. Associate Justice Presbitero Velasco Jr. inhibited himself from the decision, saying his son is a congressman.
Plunder complaints
The National Bureau of Investigation has filed a complaint for plunder in the Office of the Ombudsman against businesswoman Janet Lim-Napoles and Senators Juan Ponce Enrile, Jinggoy Estrada and Ramon Revilla Jr. in connection with the P10-billion pork barrel scam. They all have denied any wrongdoing.
Former President and now Pampanga Rep. Gloria Macapagal-Arroyo and three of her Cabinet secretaries were also named recently in another plunder complaint in connection with the alleged wholesale theft of P900 million from the Malampaya Fund meant for victims of Tropical Storms “Ondoy” and “Pepeng” in 2009.
“We thought we won,” said Solicitor General Francis Jardeleza. The government respects the court ruling, he told reporters before attending oral arguments on petitions questioning in the Supreme Court the constitutionality of the Disbursement Acceleration Program—an impounding mechanism for government savings.
Jardeleza had pleaded for the retention of the congressional pork, saying that half a million students and a similar number of indigent patients were depending on the lawmakers for their continued enrollment and healthcare.
Budget Secretary Florencio Abad said he wanted to see the full decision to determine if there was still a way to make use of the pork barrel funds.—With a report from Leila B. Salaverria and AFP
RELATED STORIES:


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x x x."
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Tuesday, November 5, 2013

July 2013 Philippine Supreme Court Decisions on Legal and Judicial Ethics | LEXOTERICA: A PHILIPPINE BLAWG

see - July 2013 Philippine Supreme Court Decisions on Legal and Judicial Ethics | LEXOTERICA: A PHILIPPINE BLAWG

"x x x.

Attorney; Attorney-client relationship. Respondent Atty. Ramon SG Cabanes, Jr. was charged for gross negligence in violation of Canon 17, and Rules 18.03 and 18.04 of Canon 18 of the Code of Professional Responsibility. The Supreme Court held him guilty of gross negligence. The relationship between an attorney and his client is one imbued with utmost trust and confidence. In this light, clients are led to expect that lawyers would be ever-mindful of their cause and accordingly exercise the required degree of diligence in handling their affairs. Verily, a lawyer is expected to maintain at all times a high standard of legal proficiency, and to devote his full attention, skill, and competence to the case, regardless of its importance and whether he accepts it for a fee or for free. A lawyer’s duty of competence and diligence includes not merely reviewing the cases entrusted to the counsel’s care or giving sound legal advice, but also consists of properly representing the client before any court or tribunal, attending scheduled hearings or conferences, preparing and filing the required pleadings, prosecuting the handled cases with reasonable dispatch, and urging their termination without waiting for the client or the court to prod him or her to do so. While such negligence or carelessness is incapable of exact formulation, the Court has consistently held that the lawyer’s mere failure to perform the obligations due his client is per se a violation. Thus, the court suspended respondent for six (6) months. Josefina Caranza Vda de Saldivar v. Atty. Ramon SG Cabanes, Jr., A.C. No. 7749, July 8, 2013
Attorney; Conflict of interest. The rule prohibiting conflict of interest was fashioned to prevent situations wherein a lawyer would be representing a client whose interest is directly adverse to any of his present or former clients. In the same way, a lawyer may only be allowed to represent a client involving the same or a substantially related matter that is materially adverse to the former client only if the former client consents to it after consultation. The rule is grounded in the fiduciary obligation of loyalty. Throughout the course of a lawyer-client relationship, the lawyer learns all the facts connected with the client’s case, including the weak and strong points of the case. Knowledge and information gathered in the course of the relationship must be treated as sacred and guarded with care. It behooves lawyers not only to keep inviolate the client’s confidence, but also to avoid the appearance of treachery and double-dealing, for only then can litigants be encouraged to entrust their secrets to their lawyers, which is paramount in the administration of justice. The nature of that relationship is, therefore, one of trust and confidence of the highest degree.
Contrary to Atty. Era’s ill-conceived attempt to explain his disloyalty to Samson and his group, the termination of the attorney-client relationship does not justify a lawyer to represent an interest adverse to or in conflict with that of the former client. The spirit behind this rule is that the client’s confidence once given should not be stripped by the mere expiration of the professional employment. Even after the severance of the relation, a lawyer should not do anything that will injuriously affect his former client in any matter in which the lawyer previously represented the client. Nor should the lawyer disclose or use any of the client’s confidences acquired in the previous relation. Thus, Atty. Era was found guilty of Rule 15.03 of Canon 15 and Canon 17 of the Code of Professional Responsibility and was suspended from the practice of law for two (2) years. Ferdinand A. Samson v. Atty. Edgardo O. Era, A.C. No. 6664, July 16, 2013.
Attorney; Disbarment and suspension of lawyers; Burden of proof. The burden of proof in disbarment and suspension proceedings always rests on the shoulders of the complainant. The Court exercises its disciplinary power only if the complainant establishes the complaint by clearly preponderant evidence that warrants the imposition of the harsh penalty. As a rule, an attorney enjoys the legal presumption that he is innocent of the charges made against him until the contrary is proved. An attorney is further presumed as an officer of the Court to have performed his duties in accordance with his oath. In this case, complainants failed to discharge their burden of proving that respondents ordered their secretary to stamp a much later date instead of the actual date of receipt for the purpose of extending the ten-day period within which to file a Motion for Reconsideration under the NLRC Rules of Procedure. Such claim is merely anchored on speculation and conjecture and not backed by any clear preponderant evidence necessary to justify the imposition of administrative penalty on a member of the Bar. Jaime Joven and Reynaldo C. Rasing v. Atty. Pablo R. Cruz and Frankie O. Magsalin III, A.C. No. 7686, July 31, 2013.
Attorney; Honesty; Practice of law is not a right but a privilege. Lawyers are officers of the court, called upon to assist in the administration of justice. They act as vanguards of our legal system, protecting and upholding truth and the rule of law. They are expected to act with honesty in all their dealings, especially with the court. Verily, the Code of Professional Responsibility enjoins lawyers from committing or consenting to any falsehood in court or from allowing the courts to be misled by any artifice. Moreover, they are obliged to observe the rules of procedure and not to misuse them to defeat the ends of justice. Indeed, the practice of law is not a right but merely a privilege bestowed upon by the State upon those who show that they possess, and continue to possess, the qualifications required by law for the conferment of such privilege. One of those requirements is the observance of honesty and candor. Candor in all their dealings is the very essence of a practitioner’s honorable membership in the legal profession. Lawyers are required to act with the highest standard of truthfulness, fair play and nobility in the conduct of litigation and in their relations with their clients, the opposing parties, the other counsels and the courts. They are bound by their oath to speak the truth and to conduct themselves according to the best of their knowledge and discretion, and with fidelity to the courts and their clients. Sonic Steel Industries, Inc. v. Atty. Nonnatus P. Chua, A.C. No. 6942, July 17, 2013.
Court personnel; Gross dishonesty; Misrepresentation of eligibility; Penalty. Respondent, a court stenographer III, was charged with gross dishonesty in connection with her Civil Service eligibility where she was accused of causing another person to take the Civil Service Eligibility Examination in her stead. Before the Decision was imposed, however, respondent already resigned. The Supreme Court held that the respondent’s resignation from the service did not cause the Court to lose its jurisdiction to proceed against her in this administrative case. Her cessation from office by virtue of her intervening resignation did not warrant the dismissal of the administrative complaint against her, for the act complained of had been committed when she was still in the service. Nor did such cessation from office render the administrative case moot and academic. Otherwise, exacting responsibility for administrative liabilities incurred would be easily avoided or evaded.
Respondent’s dismissal from the service is the appropriate penalty, with her eligibility to be cancelled, her retirement benefits to be forfeited, and her disqualification from re-employment in the government service to be perpetual. Her intervening resignation necessarily means that the penalty of dismissal could no longer be implemented against her. Instead, fine is imposed, the determination of the amount of which is subject to the sound discretion of the Court. Concerned Citizen V. Nonita v. Catena, Court Stenographer III, RTC, Br. 50, Puerto Princesa, Palawan, A.M. OCA IPI No. 02-1321-P, July 16, 2013.
Court personnel; Misconduct; Penalty under the Revised Rules on Administrative Cases in the Civil Service; Effect of death in an administrative case. Misconduct is “a transgression of some established and definite rule of action, a forbidden act, a dereliction from duty, unlawful behavior, wilful in character, improper or wrong behavior.” A misconduct is “grave” or gross” if it is “out of all measure; beyond allowance; flagrant; shameful” or “such conduct as is not to be excused.” Respondent Ong’s and Buencamino’s acts of using the levied car for personal errands and losing it while under their safekeeping constitute grave misconduct and gross neglect of duty. These are flagrant and shameful acts and should not be countenanced. Respondents’ acts warrant the penalty of dismissal as provided in Rule 10, Section 46 of the Revised Rules on Administrative Cases in the Civil Service. As for respondent Buencamino, his death is not a ground for the dismissal of the Complaint against him. Respondent Buencamino’s acts take away the public’s faith in the judiciary, and these acts should be sanctioned despite his death.
Sheriffs are reminded that they are “repositories of public trust and are under obligation to perform the duties of their office honestly, faithfully, and to the best of their abilities.” Being “frontline officials of the justice system,” sheriffs and deputy sheriffs “must always strive to maintain public trust in the performance of their duties.” Office of the Court Administrator v. Noel R. Ong, Deputy Sheriff, Br. 49, et al., A.M. No. P-09-2690, July 9, 2013.
Court personnel; Simple neglect of duty; Penalty under the Uniform Rules on Administrative Cases; Mitigating circumstances. The Development Bank of the Philippines (DBP) charged respondent Sheriff lV Famero with Gross Neglect of Duty amounting to Gross Misconduct for refusing to implement the Writ of Execution issued in a civil case involving DBP. The Supreme Court held that the respondent cannot fully be excused for his failure to make periodic reports in the proceedings taken on the writ, as mandated by Section 14, Rule 39 of the Rules of Court.
For the respondent’s lapses in the procedures in the implementation of the writ of execution, he was found guilty of simple neglect of duty, defined as the failure of an employee to give attention to the task expected of him. Under Section 52(B)(1) of the Uniform Rules on Administrative Cases in the Civil Service, simple neglect of duty is a less grave offense  punishable by suspension from office for one (1) month and one (1) day to six (6) months for the first offense, and dismissal for the second offense. In the imposition of the appropriate penalty, Section 53 of the same Rules allows the disciplining authority to consider mitigating circumstances in favor of the respondent. The court considered his length of service in the Judiciary, acknowledgment of infractions, remorse and other family circumstances, among others, in determining the proper penalty. He was also found to be entitled to the following mitigating circumstances: (1) his more than 24 years of service in the Judiciary; (2) a clear record other than for the present infraction which is his first offense, (3) the resistance of the informal settlers to leave the property; (4) fear for his life; and (5) his well-grounded recognition that he could not undertake any demolition without the appropriate court order. After considering the attendant facts and the mitigating circumstances, the court also considered that the efficiency of court operations may ensue if the respondent’s work were to be left unattended by reason of his suspension. Thus, he was imposed the penalty of fine instead of suspension from service. Development Bank of the Philippines, etc. Vs. Damvin V. Famero, Sheriff IV, RTC, Br. 43, Roxas, Oriental Mindoro, A.M. No. P-0-2789, July 31, 2013.
Judge; Gross Inefficiency; Duties include prompt disposition or resolution of cases. As a frontline official of the Judiciary, a trial judge should always act with efficiency and probity. He is duty-bound not only to be faithful to the law, but also to maintain professional competence. The pursuit of excellence ought always to be his guiding principle. Such dedication is the least that he can do to sustain the trust and confidence that the public have reposed in him and the institution he represents.
The Court cannot overstress its policy on prompt disposition or resolution of cases. Nonetheless, the Court has been mindful of the plight of our judges and understanding of circumstances that may hinder them from promptly disposing of their businesses. Hence, the Court has allowed extensions of time to decide cases beyond the 90-day period. All that a judge needs to do is to request and justify an extension of time to decide the cases, and the Court has almost invariably granted such request. Judge Carbonell’s failure to decide several cases within the reglementary period, without justifiable and credible reasons, constituted gross inefficiency. Considering that Judge Carbonell has retired due to disability, his poor health condition may have greatly contributed to his inability to efficiently perform his duties as a trial judge. That mitigated his administrative liability, for which reason the Court reduced the recommended penalty of fine from P50,000 to P20,000. Re: Failure of Former Judge Antonio A. Carbonell to Decide Cases Submitted for Decision and Resolve Pending Motions in the RTC, Branch 27, San Fernando, La Union, A.M. No. 08-5-305-RTC, July 9, 2013.
x x x."

Sunday, November 3, 2013

2014 holidays


2014 HOLIDAYS IN THE PHILIPPINES - YES!
January 1 (Wednesday) - New Year's Day
January 31 (Friday) - Chinese New Year
February 25 (Tuesday) - People Power Anniversary
April 9 (Wednesday) - Araw ng Kagitingan
April 17 (Thursday) - Maundy Thursday
April 18 (Friday) - Good Friday
April 19 (Saturday) - Black Saturday
May 1 (Thursday) - Labor Day
June 12 (Thursday) - Independence Day
August 21 (Thursday) - Ninoy Aquino Day
August 25 (Monday) - National Heroes Day
November 1 (Saturday) - All Saints Day
November 30 (Sunday) - Bonifacio Day
December 24 (Wednesday) - Christmas Eve
December 25 (Thursday) - Christmas Day
December 26 (Friday) - Day after Christmas
December 30 (Tuesday) - Rizal Day
December 31 (Wednesday) - New Year's Eve
Eid'l Fitr - to be declared
Eid'l Adha - to be declared

2013 bar exams


The complete set of 2013 BAR EXAM Questionnaires:


Political Law - http://bit.ly/Pol2013
Labor Law - http://bit.ly/Labor2013
Civil Law - http://bit.ly/Civil2013
Taxation - http://bit.ly/Taxation2013
Mercantile Law - http://bit.ly/Mercantile2013
Criminal Law - http://bit.ly/Crim2013
Remedial Law - http://bit.ly/Remedial2013
Legal Ethics - http://bit.ly/LegalEthics2013