Legal Briefs - Feb.7.07

8/13/2019 Legal Briefs - Feb.7.07

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LABOR LAW:

ABANDONMENT; ELEMENTSTo constitute abandonment, two elements must concur: (1) the failure to report for work or

absence without valid or justifiable reason, and (2) a clear intention to sever the employer-

employee relationship !f the employee"s aim is to secure the benefits due them from theiremployer, abandonment would surely be an illo#ical and impractical recourse, especially for

simple laborers

DISMISSAL OF EMPLOYEES; LOSS OF TRUST AND CONFIDENCE.

$oss of trust and confidence to be a valid #round for an employee"s dismissal must be clearly

established% breach is willful if it is done intentionally, knowin#ly and purposely, without

justifiable e&cuse, as distin#uished from an act done carelessly, thou#htlessly, heedlessly orinadvertently !t must rest on substantial #rounds and not on the employer"s arbitrariness,

whims, caprices or suspicion, otherwise, the employee would remain at the mercy of the

employer

BACKWAGES AND MORAL DAMAGES; WHEN RECOVERABLE.

'ackwa#es in #eneral are #ranted on #rounds of euity for earnin#s which a worker oremployee has lost due to ille#al dismissal pon the other hand, moral dama#es are

recoverable only where the dismissal of the employee was attended by bad faith or constituted

an act oppressive to labor or was done in a manner contrary to morals, #ood customs or publicpolicy while e&emplary dama#es may be awarded only if the dismissal was effected in a

wanton, oppressive or malevolent manner

SECURITY OF TENURE; MANAGERIAL PERSONNEL*ana#erial personnel and other employees occupyin# positions of trust and confidence are

entitled to security of tenure, fair standards of employment, and the protection of labor laws+owever, the rules on termination of employment, penalties for infractions, and resort toconcerted action are not necessarily the same as those for ordinary employees

STRIKES; ILLEGAL IF UNDERTAKEN DESPITE ASSUMPTION OR

CERTIFICATION BY SECRETARY OF LABOR

% strike that is undertaken despite the issuance by the ecretary of $abor of an assumption or

certification order becomes a prohibited activity and thus ille#al, pursuant to the second

para#raph of %rt 2. of the $abor /ode as amended (0amboan#a ood roducts, !nc v3$4/, 54 62766, 8ctober 19, 16; 1


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company and the union of which he is a member at the time of the conclusion of the

a#reement, after he has resi#ned from said union

PERMANENT TOTAL DISABILITY; DEFINED

This /ourt has consistently ruled that =disability should not be understood more on its medical

si#nificance but on the loss of earnin# capacity ermanent total disability means disablementof an employee to earn wa#es in the same kind of work, or work of similar nature that he was

trained for or accustomed to perform, or any kind of work which a person of >his? mentality

and attainment could do !t does not mean absolute helplessness= >5! @ /%, 26A /4%.97 (16); 5! @ /%, 27 /4% 199 (1); 'ejerano vs /%, 27A /4% A6 (12)?

This /ourt has also held that in disability compensation, it is not the injury which is

compensated, but rather it is the incapacity to work resultin# in the impairment of one"s earnin#

capacity

RETURN-TO-WORK ORDER OF SECRETARY OF LABOR; FAILURE OF

EMPLOYER TO SATISFACTORILY ESTABLISH VIOLATION

here the employer fails to satisfactorily establish any violation of the $abor ecretary"s retun-to-work-order, any contrary findin# by the $abor %rbiter and the 3ational $abor 4elations

/ommission is committed with #rave abuse of discretion

ELEMENTS OF ILLEGAL RECRUITMENT IN LARGE SCALE

The essential elements of the crime of ille#al recruitment in lar#e scale are: (1) the accuseden#a#es in acts of recruitment and placement of workers defined under %rt 19(b) or in any

prohibited activities under %rt 9. of the $abor /ode; (2) the accused has not complied with

the #uidelines issued by the ecretary of $abor and Bmployment, particularly with respect to

the securin# of a license or an authority to recruit and deploy workers, either locally oroverseas; and (9) the accused commits the unlawful acts a#ainst three or more persons,

individually or as a #roup

POWERS OF SECRETARY OF LABOR; EFFECTIVITY OF ARBITRAL AWARDS

!n the absence of a specific provision of law prohibitin# retroactivity of the effectivity of

arbitral awards issued by the ecretary of $abor, he is deemed vested with plenary anddiscretionary powers to determine the effectivity thereof

EMPLOYER'S RIGHT TO CONDUCT THE AFFAIRS OF HIS BUSINESS;

MANAGEMENT PREROGATIVE.The employerCs ri#ht to conduct the affairs of his business, accordin# to its own discretion and

jud#ment, is well-reco#niDed %n employer has a free rei#n and enjoys wide latitude of

discretion to re#ulate all aspects of employment, includin# the prero#ative to instill disciplinein its employees and to impose penalties, includin# dismissal, upon errin# employees This is

a mana#ement prero#ative, where the free will of mana#ement to conduct its own affairs to

achieve its purpose takes form The only criterion to #uide the e&ercise of its mana#ementprero#ative is that the policies, rules and re#ulations on work-related activities of the

employees must always be fair and reasonable and the correspondin# penalties, when

prescribed, commensurate to the offense involved and to the de#ree of the infraction

APPEAL TO NLRC; HOW TAKEN


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%n appeal from the $abor %rbiter"s decision to the 3$4/ may be taken (1) by filin# a verified

memorandum of appeal and (2) by payin# the appeal fees within ten calendar days from receipt

of a decision, award or order of the $abor %rbiter,both of which reuisites must be satisfied,otherwise the runnin# of the prescriptive period for perfectin# an appeal will not be tolled

ABANDONMENT;MERE ABSENCE NOT CONSIDERED AS ABANDONMENT.Eor abandonment to arise, there must be concurrence of two thin#s: (1) lack of intention to

work; and (2) the presence of overt acts si#nifyin# the employee"s intention not to work hile

absence from work for a prolon#ed period may su##est abandonment in certain instances, mereabsence of one or two days would not be enou#h to sustain such a claim

ABANDONMENT AS VALID GROUND FOR DISMISSAL

Eor an abandonment to constitute a valid #round for dismissal there must be a clear, deliberateand unjustified refusal to resume employment and a clear intention to sever the employer-

employee relationship on the part of the employee

FINDINGS OF FACT OF LABOR DEPARTMENT ACCORDED RESPECT ANDFINALITY

Eactual findin#s of uasi-judicial a#encies, like the labor department, which have acuirede&pertise in matters entrusted to their jurisdiction are accorded by the upreme /ourt not only

respect but finality if supported by substantial evidence

RECRUITMENT AND PLACEMENT; NON LICENSEE OR NON HOLDER OF

AUTHORITY, DEFINED.

% non-licensee or non-holder of authority means any person, corporation or entity which has

not been issued a valid license or authority to en#a#e in recruitment and placement by theecretary of $abor, or whose license or authority to en#a#e in recruitment and placement by

the ecretary of $abor, or whose license or authority has been suspended, revoked or cancelled

by the 8B%, or the ecretary

DISMISSAL OF EMPLOYEE; DUE PROCESS; TWIN REQUIREMENTS OF

NOTICE AND HEARINGThe twin reuirements of notice and hearin# constitute essential elements of due process in

cases of employee dismissal: the reuirement of notice is intended to inform the employee

concerned of the employer"s intent to dismiss and the reason for the proposed dismissal; upon

the other hand, the reuirement of hearin# affords the employee an opportunity to answer hisemployer"s char#es a#ainst him accordin#ly to defend himself therefrom before dismissal is

effected 3either of these two reuirements can be dispensed with without runnin# afoul of the

due process reuirement of the 16< /onstitution

WAGE; DEFINED.

=a#e= paid to any employee shall mean the remuneration or earnin#s, however desi#nated,capable of bein# e&pressed in terms of money, whether fi&ed or ascertained on a time, task,

piece, or commission basis, or other method of calculatin# the same, which is payable by an

employer to an employee under a written or unwritten contract of employment for work done

or to be done, or for services rendered or to be rendered and includes the fair and reasonable


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value, as determined by the ecretary of $abor, of board, lod#in#, or other facilities

customarily formatted by the employer to the employee

CERTIFICATION ELECTION; ONLY MEMBERS OF UNION MAY VOTE; POWER

OF MED-ARBITER TO DETERMINE MEMBERSHIP.

nder %rticle 2A of the $abor /ode, to have a valid certification election at least a majority ofall eli#ible voters in the unit must have cast their votes !t is apparent that incidental to the

power of the med-arbiter to hear and decide representation cases is the power to determine who

the eli#ible voters are !n so doin#, it is a&iomatic that the med-arbiter should determine thele#ality of the employees" membership in the union !n the case at bar, it obviously becomes

necessary to consider first the propriety of the employees" membership withdrawal from the

cooperative before a certification election can be had

ADJUSTMENT OF MINIMUM WAGE; TWO METHODS.

+istorically, le#islation involvin# the adjustment of the minimum wa#e made use of two

methods The first method involves the fi&in# of determinate amount that would be added to

the prevailin# statutory minimum wa#e The other involves =the salary-ceilin#-method=whereby the wa#e adjustment is applied to employees receivin# a certain denominated salary

ceilin# The first method was adopted in the earlier wa#e orders, while the latter method wasused in 4% 3os .7 and


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CERTIFICATE OF LAND TRANSFER DOES NOT VEST OWNERSHIP; ONLY

EVIDENCES RECOGNITION OF GRANTEE AS QUALIFIED PARTY.

!t must be stressed, however, that the mere issuance of the certificate of land transfer does notvest in the farmerF#rantee ownership of the land described therein %t most, the certificate

merely evidences the #overnment"s reco#nition of the #rantee as the party ualified to avail of

the statutory mechanisms for the acuisition of ownership of the land titled by him as providedunder residential Gecree 3o 2ection 2, G

3o 61; a#talunan v Tamayo, 54 3o A.261, *arch , 17?

RELIEFS GRANTED; SERVICE INCENTIVE LEAVE IS A STATUTORY BENEFIT;

!TH MONTH PAY.

rivate respondents" memorandum of appeal e&plicitly prayed for =such other remedies and

benefits as may be proper under the premises= uch #eneral prayer included the relief #ranted

in the disputed order *oreover, the award of ervice !ncentive $eave pay is a statutory benefitwhich cannot be denied to private respondents (ee %rticle A, $abor /ode), the same is true

with respect to the 19th month pay since G 6A1 states that =all employers are reuired to payall their employees receivin# a basic salary of not more than 1,77777 a month, re#ardless of

the nature of their employment, a 19th month pay not later than Gecember 2. of every year and

so all the complainants who were not paid their 19th month pay must be paid accordin#ly

ARTICLES "#! AND "#$ OF THE LABOR CODE; NO LAW PASSED BY CONGRESS

REPEALING THE SAME.

!n the case at bar, no law has ever been passed by /on#ress e&pressly repealin# %rticles 29and 2. of the $abor /ode 3either may the 16< /onstitution be considered to have impliedly

repealed the said %rticles considerin# that there is no showin# that said articles are inconsistent

with the said /onstitution *oreover, no court has ever declared that the said articles areinconsistent with the 16< /onstitution 8n the contrary, the continued validity and operation

of %rticles 29 and 2. of the $abor /ode has been reco#niDed by no less than the /on#ress of

the hilippines when the latter enacted into law 4%


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ecretary of $abor, once an assumption andFor certification order is issued They cannot, for

instance, i#nore return-to-work orders, citin# unfair labor practices on the part of the company,

to justify their actions

RETURN TO WORK ORDER; NOT A MATTER OF OPTION OR VOLUNTARINESS

BUT OF OBLIGATION.The return to work order does not so much confer a ri#ht as it imposes a duty; and while as a

ri#ht it may be waived, it must be dischar#ed as a duty even a#ainst the worker"s will

4eturnin# to work in this situation is not a matter of option or voluntariness but of obli#ationThe worker must return to his job to#ether with his co-workers so the operations of the

company can be resumed and it can continue servin# the public and promotin# its interest

STRIKES; RETURN-TO-WORK ORDER; MAY BE ENFORCED WHETHER THE

STRIKE IS LEGAL OR ILLEGAL.

8ne other point that must be underscored is that the return-to-work order is issued pendin# the

determination of the le#ality or ille#ality of the strike !t is not correct to say that it may be

enforced only if the strike is le#al and may be disre#arded if the strike is ille#al, for the purposeprecisely is to maintain the status uo while the determination is bein# made 8therwise, the

workers who contend that their strike is le#al can refuse to return to work to their work andcause a standstill on the company operations while retainin# the positions they refuse to

dischar#e or allow the mana#ement to fill orse, they will also claim payment for work not

done, on the #round that they are still le#ally employed althou#h actually en#a#ed in theactivities inimical to their employer"s interest

STRIKES; EFFECT OF ASSUMPTION&CERTIFICATION ORDER OF THE

SECRETARY OF LABOR.e also wish to point out that an assumption andFor certification order of the ecretary of

$abor automatically results in a return-to-work of all strikin# workers, whether or not a

correspondin# order has been issued by the ecretary of $abor Thus, the strikin# workerserred when they continued with their strike alle#in# absence of a return-to-work order %rticle

2.(#) is clear, once an assumptionFcertification order is issued, strikes are enjoined, or if one

has already taken place, all strikers shall immediately return to work

ASSUMPTION OF JURISDICTION BY SECRETARY OF LABOR; NATURE.

The assumption of jurisdiction by the ecretary of $abor over labor disputes causin# or likely

to cause a strike or lockout in an industry indispensable to the national interest is in the natureof a police power measure !t cannot be denied that the private respondent is en#a#ed in an

undertakin# affected with public interest bein# one of the lar#est manufacturers of food

products The compellin# consideration of the ecretary"s assumption of jurisdiction is the factthat a prolon#ed strike or lockout is inimical to the national economy and thus, the need to

implement some measures to suppress any act which will hinder the company"s essential

productions is indispensable for the promotion of the common #ood nder this situation, theecretary"s certification order for compulsory arbitration which was intended for the immediate

formulation of an already delayed /'% was proper


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NATURE AND FUNCTION OF NLRC WHEN SITTING IN A COMPULSORY

ARBITRATION CERTIFIED BY THE SECRETARY OF LABOR.

hen sittin# in a compulsory arbitration certified to by the ecretary of $abor, the 3$4/ isnot sittin# as a judicial court but as an administrative body char#ed with the duty to implement

the order of the ecretary !ts function only is to formulate the terms and conditions of the

/'% and cannot #o beyond the scope of the order *oreover, the /ommission is further taskedto act within the earliest time possible and with the end in view that its action would not only

serve the interests of the parties alone, but would also have favorable implications to the

community and to the economy as a whole This is the clear intention of the le#islative body inenactin# %rt 29 para#raph (#) of the $abor /ode, as amended by ection 2< of 4% 1


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however, the award to the employee of separation pay would be sustainable under the social

justice policy even if the separation is for cause

SOCIAL JUSTICE POLICY; E%PLAINED.

The social justice policy mandates a compassionate attitude toward the workin# class in its

relations with mana#ement hile in callin# for the-protection of labor, the /onstitution doesnot condone wron#doin# by the employee, it nevertheless ur#es a moderation of the sanctions

that may be applied to him in the li#ht of the many disadvanta#es that wei#h heavily on him

like an albatross han#in# from his neck *ana#ement must look upon the workin# class withsympathy, rememberin# that they are eual partners joined in a common venture whose

success should redound to their mutual benefit

APPEALS; OFFICE OF THE PRESIDENT ASSUMES JURISDICTION OVER CASES

OF NATIONAL INTEREST.

ith re#ard to the remedy of appeal to which the petitioners are entitled under the applicable

law then, this /ourt deems it impractical to allow the parties to still pursue their appeal to the

8ffice of the resident at this time considerin# that under the present law, the $abor /ode, asamended, the resident may only assume jurisdiction only in cases which the latter considers to

be of national interest ith respect to those labor cases which do not involve national interest,such as the case at bar, the machinery or body in the 8ffice of the resident #overnin# such

appeals apparently is no lon#er e&istin# under the present law +ence, for just and euitable

considerations, this /ourt instead shall #rant the petitioners the opportunity to file a properpetition for certiorari within a reasonable time uestionin# the decision on the merits of the

ecretary of $abor

AUTHORIED CAUSES OF DISMISSAL; REDUNDANCY.4edundancy e&ists when the service capability of the work force is in e&cess of what is

reasonably needed to meet the demands of the enterprise % redundant position is one rendered

superfluous by a number of factors, such as overhirin# of workers, decreased volume ofbusiness, droppin# of a particular product line previously manufactured by the company or

phasin# out of a service previously undertaken by the business

DUE PROCESS IN DISMISSAL OF EMPLOYEE; BURDEN UPON EMPLOYER TO

PROVE DISMISSAL WAS WITH JUST CAUSE.

!t bears stressin# that a workerCs employment is property in the constitutional sense +e cannot

be deprived of his work without due process !n order for the dismissal to be valid, not onlymust it be based on just cause supported by clear and convincin# evidence, the employee must

also be #iven an opportunity to be heard and defend himself !t is the employer who has the

burden of provin# that the dismissal was with just or authoriDed cause The failure of theemployer to dischar#e this burden means that the dismissal is not justified and that the

employee is entitled to reinstatement and backwa#es

OVERSEAS EMPLOYMENT; LOCAL AGENCIES MUST SUBMIT FORMAL

APPOINTMENT OR AGENCY CONTRACT TO SUE AND BE SUED JOINTLY

WITH FOREIGN PRINCIPAL.

!t must be borne in mind that local private employment a#encies, before they can commencerecruitin# workers for their forei#n principal, must submit with the 8B% a formal


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appointment or a#ency contract e&ecuted by the forei#n based employer empowerin# the local

a#ent to sue and be sued jointly and solidarily with the principal or forei#n-based employer for

any of the violations of the recruitment a#reement and contract of employment /onsiderin#that the local private employment a#ency may sue on behalf of its forei#n principal on the

basis of its contractual undertakin#s submitted to the 8B%, there is no reason why the said

a#ency cannot likewise si#n or e&ecute a certification of non-forum shoppin# for its ownpurposes andFor on behalf of its forei#n principal

SEPARATION PAY DUE TO COMPASSION; E%AMPLES THEREOF.'ut where the cause of the separation is more serious than mere inefficiency, the #enerosity of

the law must be more discernin# There is no doubt it is compassionate to #ive separation pay

to a salesman if he is dismissed for his inability to fill his uota but surely he does not deserve

such #enerosity if his offense is misappropriation of the receipts of his sales This is no lon#ermere incompetence but clear dishonesty % security #uard found sleepin# on the job is

doubtless subject to dismissal but may be allowed separation pay since his conduct, while

inept, is not depraved 'ut if he was in fact not really sleepin# but sleepin# with a prostitute

durin# his tour of duty and in the company premises, the situation is chan#ed completely Thisis not only inefficiency but immorality and the #rant of separation pay would be entirely

unjustified

TEST OF SUPERVISORY OR MANAGERIAL STATUS.

=The test of HsupervisoryC or Hmana#erial statusC depends on whether a person possess authorityto act in the interest of his employer in the matter specified in %rticle 212 (k) of the $abor

/ode and ection 1 (m) of its !mplementin# 4ules and whether such authority is not merely

routinary or clerical in nature, but reuires the use of independent jud#ment Thus, where such

recommendatory powers as in the case at bar, are subject to evaluation, review and final actionby the department heads and other hi#her e&ecutives of the company, the same, althou#h

present, are not e&ercise of independent jud#ment as reuired by law

ILLEGAL DISMISSAL; TWIN RELIEFS TO ILLEGALLY DISMISSED EMPLOYEE.

%rticle 2


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ADMINISTRATIVE LAW:

AGREED REMEDIES MUST BE RESORTED TO BEFORE PARTIES MAY RESORT

TO ADMINISTRATIVE AGENCIES FOR RELIEF.

hen the /onstitution and by-laws of both unions dictated the remedy for intra-union dispute,

such as petitioner"s complaint a#ainst private respondents for unauthoriDed or ille#aldisbursement of unions funds, this should be resorted to before recourse can be made to the

appropriate administrative or judicial body, not only to #ive the #rievance machinery or

appeals" body of the union the opportunity to decide the matter by itself, but also to preventunnecessary and premature resort to administrative or judicial bodies Thus, a party with an

administrative remedy must not merely initiate the prescribed administrative procedure to

obtain relief, but also pursue it to its appropriate conclusion before seekin# judicial

intervention

E%HAUSTION OF ADMINISTRATIVE REMEDIES

% party cannot, without violatin# the principle of e&haustion of administrative remedies, seek

court intervention by filin# an action for replevin for the #rant of relief durin# the pendency ofan administrative proceedin#s

PERIOD FOR FILING AN ELECTION PROTEST AGAINST BARANGAY OFFICER

% petition or protest contestin# the election of a baran#ay officer should be decided by the

municipal or metropolitan trial court within fifteen days from the filin# thereof !f the caseloadof the jud#e presents the disposition of cases within the re#lementary periods, he should ask

the upreme /ourt for a reasonable e&tension of time to dispose of cases involved

POWERS OF COMMISSIONER OF LAND TRANSPORTATIONThe /ommissioner of $and Transportation and his deputies are empowered at anytime to

e&amine and inspect such motor vehicles to determine whether said vehicles are re#istered, or

are unsi#htly, unsafe, improperly marked or euipped, or otherwise unfit to be operated onbecause of possible e&cessive dama#e to hi#hways, brid#es and other infrastructures The $T8

is additionally char#ed with bein# the central repository and custodian of all records of all

motor vehicles

E%HAUSTION OF ADMINISTRATIVE REMEDIES; SIGNIFICANCE

B&haustion of the remedies in the administrative forum, bein# a condition precedent prior to

one"s recourse to the courts and more importantly, bein# an element of private respondent"sri#ht of action, is too si#nificant to be waylaid by the lower court

FAILURE TO E%HAUST ADMINISTRATIVE REMEDIES; FATAL TO PARTY'S

CAUSE OF ACTION

Eailure to e&haust administrative remedies is fatal to a party"s cause of action and a dismissal

based on that #round is tantamount to a dismissal based on lack of cause of actionPOWERS OF CONGRESS TO INTERVENE DESPITE E%ISTENCE OF

ADMINISTRATIVE AGENCIES.

!t cannot be denied that /on#ress may intervene anytime despite the e&istence of

administrative a#encies entrusted with wa#e-fi&in# powers, by virtue of the former"s plenarypower of le#islation, and when /on#ress does so, the result is not the withdrawal of the powers


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dele#ated to the a#e 'oards but cooperative lawmakin# in an area where initiative and

e&pertise are reuired

VALIDITY OF ADMINISTRATIVE ORDERS WHEN ABANDONED BY

ADMINISTRATIVE AGENCY.

The uestion of the validity of an %dministrative 8rder has become moot and academic wherethe administrative policy, the validity of which is sou#ht to be justified by private parties, has

already been abandoned by the very administrative a#ency which adopted it

EFFECT OF NON-E%HAUSTION OF ADMINISTRATIVE REMEDIES.

3on-e&haustion of administrative remedies is not jurisdictional - it only renders the action

premature, ie, the claimed cause of action is not ripe for judicial determination and for that

reason a party has no cause of action to ventilate in court

RULE IN APPRECIATION OF EVIDENCE.

ithin the field of administrative law, while strict rules of evidence are not applicable to uasi-

judicial proceedin#s, nevertheless, in adducin# evidence constitutive of substantial evidence,the basic rule that mere alle#ation is not evidence cannot be disre#arded Einally, in case of

doubt in construction and interpretation of social le#islation statutes, the liberality of the law infavor of the workin# man and woman prevails in li#ht of the /onstitution"s social justice

policy


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COMMERCIAL LAW:

RECEIVERSHIP; REASON FOR SUSPENDING CLAIMS AGAINST

CORPORATION UNDER THE SAME.

The reason for suspendin# actions for claims a#ainst the corporation should not be difficult to

discover !t is not really to enable the mana#ement committee or the rehabilitation receiver tosubstitute the defendant in any pendin# action a#ainst it before any court, tribunal, board or

body 8bviously, the real justification is to enable the mana#ement committee or rehabilitation

receiver to effectively e&ercise itsFhis powers free from any judicial or e&tra-judicialinterference that mi#ht unduly hinder or prevent the HrescueC of the debtor company To allow

such other action to continue would only add to the burden of the mana#ement committee or

rehabilitation receiver, whose time, effort and resources would be wasted in defendin# claims

a#ainst the corporation instead of bein# directed toward its restructurin# and rehabilitationI

INSURANCE; COMPULSORY MOTOR VEHICLE LIABILITY

INSURANCE;INSURER'S LIABILITY IMMEDIATE UPON OCCURRENCE OF

INJURY./ompulsory *otor @ehicle $iability !nsurance (third party liability, or T$) is primarily

intended to provide compensation for the death or bodily injuries suffered by innocent thirdparties or passen#ers as a result of a ne#li#ent operation and use of motor vehicles The victims

and or their dependents are assured of immediate financial assistance, re#ardless of the

financial capacity of the motor vehicle owners The insurer"s liability accrues immediatelyupon the occurrence of the injury or event upon which the liability depends, and does not

depend on the recovery of jud#ment by the injured party a#ainst the insured

CORPORATION LAW; TEST IN DETERMINING BUSINESS OF FOREIGN

CORPORATIONS.

The true test, however, seems to be whether the forei#n corporation is continuin# the body or

substance of the business or enterprise for which it was or#aniDed or whether it hassubstantially retired from it and turned it over to another The term implies a continuity of

commercial dealin#s and arran#ements, and contemplates, to the e&tent, the performance of

acts or works or the e&ercise of some of the functions normally incident to, and in pro#ressiveprosecution of, the purpose and object of its or#aniDation

FOREIGN CORPORATIONS; PURPOSE IN REQUIRING A LICENSE TO DO

BUSINESS IN THE PHILIPPINES.The purpose of the rule reuirin# forei#n corporations to secure a license to do business in the

hilippines is to enable us to e&ercise jurisdiction over them for the re#ulation of their

activities in this country !f a forei#n corporation operates in the hilippines without submittin#to our laws, it is only just that it not be allowed to invoke them in our courts when it should

need them later for its own protection hile forei#n investors are always welcome in this land

to collaborate with us for our mutual benefit, they must be prepared as an indispensablecondition to respect and be bound by hilippine law in proper cases, as in the one at bar

CORPORATION; INVESTED BY LAW WITH A SEPARATE AND DISTINCT

PERSONALITY FROM PERSONS COMPRISING IT.


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!t is basic that a corporation is invested by law with a personality separate and distinct from

those of the persons composin# it as well as from that of any other le#al entity to which it may

be related *ere ownership by a sin#le stockholder or by another corporation of all or nearlyall of the capital stock of a corporation is not of itself sufficient #round for disre#ardin# the

separate corporate personality

TRUST RECEIPTS; DEFINED.

% trust receipt is Ja security transaction intended to aid in financin# importers and retail dealers

who do not have sufficient funds or resources to finance the importation or purchase ofmerchandise, and who may not be able to acuire credit e&cept thru utiliDation, as collateral, of

the merchandise imported or purchasedI

CORPORATION CODE;SUFFICIENCY OF SECRETARY'S CERTIFICATE'ein# re#ular on its face, a ecretary"s certificate is sufficient for a third party to rely on-it

does not have to investi#ate the truth of the facts contained in such certification, otherwise

business transaction of corporations would become tortously slow and unnecessarily hampered

FOREIGN CORPORATIONS; SINGLE ACT MAY INDICATE PURPOSE OF

FOREIGN CORPORATION TO DO BUSINESS IN THE STATE.The rule stated in the precedin# section that the doin# of a sin#le act does not constitute

business within the meanin# of statutes prescribin# the conditions to be complied with by

forei#n corporations must be ualified to this e&tent, that a sin#le act may brin# the corporationwithin the purview of the statute where it is an act of the ordinary business of the corporation

!n such a case, the sin#le act or transaction is not merely incidental or casual, but is of such

character as distinctly to indicate a purpose on the part of the forei#n corporation to do other

business in the state, and to make the state a base of operations for the conduct of a part of thecorporations" ordinary business

BILL OF LADING; NATURE THEREOF.The petitioner-carrier, not bein# privy to any transaction between +'/ and /*!, cannot be

e&pected to look beyond what is contained on the face of the bill of ladin# in uestion and

#uess which of the many banks in *etro *anila or some other unrevealed corporation couldpossibly be the consi#nee To consider otherwise would not be sound business practice as

petitioner would be forced to wait for the real owner of the #oods to show up, perhaps in vain

!n *acondray and /ompany !nc v %ctin# /ommissioner of /ustoms, it was held that a bill of

ladin# is ordinarily merely a convenient commercial instrument desi#ned to protect theimporter or consi#nee %nd in hoeni& %ssurance /o, $td v nited tates $ines, it was held

that as a receipt, a bill of ladin# recites the place and date of shipment, describes the #oods as

to uantity, wei#ht, dimensions, identification marks, condition, uality and value

CORPORATION LAW; CERTIFICATES OF STOCKS; NATURE.

/ertificates of stocks are considered as =uasi-ne#otiable= instruments hen the owner orshareholder of these certificates si#ns the printed form of sale or assi#nment at the back of

every stock certificate without filin# in the blanks provided for the name of the transferee as

well as for the name of the attorney-in-fact, the said owner or shareholder, in effect, confers on

another all the indicia of ownership of the said stock certificates


14/45

NEGOTIABLE INSTRUMENTS LAW. MATERIAL ALTERATION; DEFINED.

%n alteration is said to be material if it alters the effect of the instrument !t means an

unauthoriDed chan#e in an instrument that purports to modify in any respect the obli#ation of aparty or an unauthoriDed addition of words or numbers or other chan#e to an incomplete

instrument relatin# to the obli#ation of a party !n other words, a material alteration is one

which chan#es the items which are reuired to be stated under ection 1 of the 3e#otiable!nstruments $aw

CODE OF COMMERCE; ARTICLE ()* STILL GOOD LAW; NATURE OF

MARITIME LAW.

3otwithstandin# the passa#e of the 3ew /ivil /ode, %rticle A6< of the /ode of /ommerce is

still #ood law The reason lies in the peculiar nature of maritime law is which is =e&clusively

real and hypothecary that operates to limit such liability to the value of the vessel, or to theinsurance thereon, if any %s correctly stated by the appellate court, =this rule is found

necessary to offset a#ainst the innumerable haDards and perils of a sea voya#e and to encoura#e

shipbuildin# and marine commerce /ontrary to the petitioners" supposition, the limited

liability doctrine applies not only to the #oods but also in all cases like death or injury topassen#ers wherein the shipowner or a#ent may properly be held liable for the ne#li#ent or

illicit acts of the captain !t must be stressed at this point that %rticle A6< speaks only ofsituations where the fault or ne#li#ence is committed solely by the captain !n cases where the

shipowner is likewise to be blamed, %rticle A6< does not apply uch a situation will be

covered by the provisions of the 3ew /ivil /ode on /ommon /arriers

CHECKS; CASHIER'S CHECK; EQUIVALENT TO ACCEPTANCE.

!t is a well-known and accepted practice in the business sector that a cashier"s check is deemed

as cash *oreover, since the said check had been certified by the drawee bank, by thecertification, the funds represented by the check are transferred from the credit of the maker to

that of the payee or holder, and for all intents and purposes, the latter becomes the depositor of

the drawee bank, with ri#hts and duties of one in such situation here a check is certified bythe bank on which it is drawn, the certification is euivalent to acceptance aid certification

=implies that the check is drawn upon sufficient funds in the hands of the drawee, that they

have been set apart for its satisfaction, and that they shall be so applied whenever the check ispresented for payment !t is an understandin# that the check is #ood then, and shall continue

#ood, and this a#reement is as bindin# on the bank as its notes in circulation, a certificate of

deposit payable to the order of the depositor, or any other obli#ation it can assume

NEGOTIABLE INSTRUMENTS LAW; ACCOMODATION PARTY; LIABILITY.

%n accommodation party is one who has si#ned the instrument as maker, drawer, acceptor, or

indorser, without receivin# value therefor, and for the purpose of lendin# his name to someother person uch a person is liable on the instrument to a holder for value, notwithstandin#

such holder, at the time of takin# the instrument, knew him to be only an accommodation

party

TRUST RECEIPTS LAW; DOES NOT SEEK PAYMENT BUT PUNISHES

DISHONESTY AND ABUSE OF CONFIDENCE.

The Trust 4eceipts $aw does not seek to enforce payment of the loan, rather it punishes thedishonesty and abuse of confidence in the handlin# of money or #oods to the prejudice of


15/45

another re#ardless of whether the latter is the owner The practice of banks of makin#

borrowers si#n trust receipts to facilitate collection of loans and place them under the threats of

criminal prosecution should they be unable to pay it may be unjust and ineuitable, if notreprehensible uch a#reements are contracts of adhesion which borrowers have no option but

to si#n lest their loan be disapproved The resort to this scheme leaves poor and hapless

borrowers at the mercy of banks, and is prone to misinterpretation

ASSIGNMENT OF CREDIT; DEFINED.

%n assi#nment of credit is an act of transferrin#, either onerously or #ratuitously, the ri#ht ofan assi#nor to an assi#nee who would then be capable of proceedin# a#ainst the debtor for

enforcement or satisfaction of the credit The transfer of ri#hts takes place upon perfection of

the contract, and ownership of the ri#ht, includin# all appurtenant accessory ri#hts, is

thereupon acuired by the assi#nee The assi#nment binds the debtor only upon acuirin#knowled#e of the assi#nment but he is entitled, even then, to raise a#ainst the assi#nee the

same defenses he could set up a#ainst the assi#nor here the assi#nment is on account of

pure liberality on the part of the assi#nor, the rules on donation would likewise be pertinent;

where valuable consideration is involved, the assi#nment partakes of the nature of a contract ofsale or purchase

INSURANCE; INJURED PARTY NOT LIMITED IN FILING OF ACTIONS.

!n the event that the injured fails or refuses to include the insurer as party defendant in his

claim for indemnity a#ainst the insured, the latter is not prevented by law to avail of theprocedural rules intended to avoid multiplicity of suits 3ot even a "no action" clause under the

policy which reuires that a final jud#ment be first obtained a#ainst the insured and that only

thereafter can the person insured recover on the policy can prevail over the 4ules of /ourt

provisions aimed at avoidin# multiplicity of suits

LIMITED LIABILITY DOCTRINE; CORPORATE OFFICER MAY BIND HIMSELF

PERSONALLY FOR CORPORATE DEBTSThere is no law that prohibits a corporate officer from bindin# himself personally to answer for

a corporate debt hile the limited liability doctrine is intended to protect the stockholder by

immuniDin# him from personal liability for the corporate debts, he may nevertheless divesthimself of this protection by voluntarily bindin# himself to the payment of the corporate debts

The petitioner cannot therefore take refu#e in this doctrine that he has by his own acts

effectively waived

SHARES OF STOCK; HOW TITLE TRANSFERRED.

%s provided under ection 9 of 'atas ambansa 'ilan# 6, otherwise known as the

/orporation /ode of the hilippines, shares of stock may be transferred by delivery to thetransferree of the certificate properly indorsed Title may be vested in the transferree by the

delivery of the duly indorsed certificate of stock +owever, no transfer shall be valid, e&cept as

between the parties until the transfer is properly recorded in the books of the corporation

CORPORATE LAW; NO GENERAL RULE AS TO WHAT CONSTITUTES +DOING+

OR +ENGAGING+ OR +TRANSACTING+ BUSINESS IN THE PHILIPPINES.

There is no #eneral rule or #overnin# principle laid down as to what constitutes =doin#= or=en#a#in# in= or =transactin#= business in the hilippines Bach case must be jud#ed in the


16/45

li#ht of its peculiar circumstances Thus, a forei#n corporation with a settlin# a#ent in the

hilippines which issued twelve marine policies coverin# different shipments to the hilippines

and a forei#n corporation which had been collectin# premiums on outstandin# policies werere#arded as doin# business here The acts of these corporations should be distin#uished from a

sin#le or isolated business transaction or occasional, incidental and casual transactions which

do not come within the meanin# of the law here a sin#le act or transaction, however, is notmerely incidental or casual but indicates the forei#n corporation"s intention to do other business

in the hilippines, said sin#le act or transaction constitutes =doin#= or =en#a#in# in= or

=transactin#= business in the hilippines

TRANSPORTATION; RESPONSIBILITY OF COMMON CARRIERS.

8win# to the nature of their business and for reasons of public policy, common carriers are

tasked to observe e&traordinary dili#ence in the vi#ilance over the #oods and for the safety ofits passen#ers (%rticle 1


17/45

merchandise; (b) the falsity of such declaration, affidavit, invoice, letter or paper; and (c) an

intention on the part of the importerFconsi#nee to evade the payment of the duties due

TRANSFER OF SHARES OF STOCK; HOW MADE.

Erom the pleadin#s submitted by the parties it is clear that althou#h B'B has indorsed in blank

the shares outstandin# in his name he has not delivered the certificate of stocks to %5%because the latter has not fully complied with his obli#ations under the memorandum of

a#reement There bein# no delivery of the indorsed shares of stock %5% cannot therefore

effectively transfer to other person or his nominees the undelivered shares of stock Eor aneffective transfer of shares of stock the mode and manner of transfer as prescribed by law must

be followed

FRANCHISES; JURISDICTION OF SEC OVER VIOLATIONS.!t must be recalled that the complaint of private respondent alle#ed that the articles of

incorporation of petitioner contained this prohibition: Jwithout, however, en#a#in# in

pawnbrokin# as defined in G 11.I and despite this restriction, petitioner alle#edly continued

to actually operate and do business as a pawnshop The complaint thus treats of a violation ofpetitionerCs primary franchise ection A of G 11., the same law invoked by petitioner,

mandates that a corporation desirin# to en#a#e in the pawnshop business must first re#isterwith the B/ ithout uestion, the complaint filed by private respondent a#ainst petitioner

called upon the B/ to e&ercise its adjudicatory and supervisory powers 'y law, the B/ has

absolute jurisdiction, supervision and control over all corporations that are enfranchised to actas corporate entities % violation by a corporation of its franchise is properly within the

jurisdiction of the B/

AIR TRANSPORTATION; LIABILITY FOR DAMAGES%ssumin# ar#uendo that airline passen#ers have no vested ri#ht to amenities in case a fli#ht is

cancelled due to force majeure, what makes an airline liable for dama#es in the instant case is

its blatant refusal to accord the so-called amenities eually to all its stranded passen#ers whowere similarly situated

COMMON CARRIERS; DEFINED./ommon carriers are persons, corporations, firms or associations en#a#ed in the business of

carryin# or transportin# passen#ers or #oods or both, by land, water, or air, for hire or

compensation, offerin# their services to the public, whether to the public in #eneral or to a

limited clientele in particular, but never on an e&clusive basis The true test of a commoncarrier is the carria#e of passen#ers or #oods, providin# space for those who opt to avail

themselves of its transportation service for a fee

ACCOMODATION PARTY; E%TENT OF LIABILITY.

%n accommodation party liable on the instrument to a holder for value, althou#h such holder at

the time of takin# the instrument knew him to be only an accommodation party, does notinclude nor apply to corporations which are accommodation parties This is because the issue

or indorsement of ne#otiable paper by a corporation without consideration and for the

accommodation of another is ultra vires +ence, one who has taken the instrument with

knowled#e of the accommodation nature thereof cannot recover a#ainst a corporation where itis only an accommodation party !f the form of the instrument, or the nature of the transaction,


18/45

is such as to char#e the indorsee with knowled#e that the issue or indorsement of the

instrument by the corporation is for the accommodation of another, he cannot recover a#ainst

the corporation thereon

INSURANCE; INJURED CAN SUE DIRECTLY THE INSURER.

The injured for whom the contract of insurance is intended can sue directly the insurer The#eneral purpose of statutes enablin# an injured person to proceed directly a#ainst the insurer is

to protect injured persons a#ainst the insolvency of the insured who causes such injury, and to

#ive such injured person a certain beneficial interest in the proceeds of the policy, and statutesare to be liberally construed so that their intended purpose may be accomplished !t has even

been held that such a provision creates a contractual relation which inures to the benefit of any

and every person who may be ne#li#ently injured by the named insured as if such injured

person were specifically named in the policy

CORPORATE DIRECTORS AND OFFICERS SOLIDARILY LIABLE WITH

CORPORATION FOR TERMINATION OF EMPLOYMENT DONE IN BAD FAITH

OR WITH MALICE.!n labor cases, particularly, the /ourt has held corporate directors and officers solidarily liable

with the corporation for the termination of employment of corporate employees done withmalice or in bad faith 'ad faith or ne#li#ence is a uestion of fact and is evidentiary !t has

been held that bad faith does not connote bad jud#ement or ne#li#ence; it imports a dishonest

purpose or some moral obliuity and conscious doin# of wron#; it means breach of a knownduty thru some motive or interest or ill will; it partakes of the nature of fraud

CORPORATION LAW; CORPORATION THAT KNOWINGLY PERMITS OFFICER

OR AGENT TO ACT WITHIN SCOPE OF APPARENT AUTHORITY ESTOPPED

FROM DENYING THE SAME.

!t is familiar doctrine that if a corporation knowin#ly permits one of its officers, or any other

a#ent, to act within the scope of an apparent authority, it holds him out to the public aspossessin# the power to do those acts; and thus, the corporation will, as a#ainst anyone who

has in #ood faith dealt with it throu#h such a#ent, be estopped from denyin# the a#entCs

authority

NEGOTIABLE INSTRUMENTS; CHECK; NOT LEGAL TENDER; MERE

DELIVERY DOES NOT DISCHARGE OBLIGATION

ince a ne#otiable instrument is only a substitute for money and not money, the delivery ofsuch an instrument does not, by itself, operate as payment % check, whether a mana#er"s

check or ordinary check, is not le#al tender, and an offer of a check in payment of a debt is not

a valid tender of payment and may be refused receipt by the obli#ee or creditor *ere deliveryof checks does not dischar#e the obli#ation under a jud#ment The obli#ation is not

e&tin#uished and remains suspended until the payment by commercial document is actually

realiDed


19/45

REMEDIAL LAW:.

ACTIONS; DEFINED.%n action is a formal demand of one"s le#al ri#hts in a court of justice in the manner prescribed

by the court or by the law The determinative or operative fact which converts a claim into an

=action or suit= is the filin# of the same with a =court of justice= Eiled elsewhere, as withsome other body or office not a court of justice, the claim may not be cate#oriDed under either

term

CAUSE OF ACTION; TWO ELEMENTS.

The cause of action must always consist of two elements: (1) the plaintiff"s primary ri#ht and

the defendant"s correspondin# primary duty, whatever may be the subject to which they relate

person, character, property or contract; and (2) the delict or wron#ful act or omission of thedefendant, by which the primary ri#ht and duty have been violated The cause of action is

determined not by the prayer of the complaint but by the facts alle#ed

DIFFERENCE BETWEEN CAUSE OF ACTION AND ACTION.% cause of action is the fact or combination of facts which affords a party a ri#ht to judicial

interference in his behalf %n action means an ordinary suit in a court of justice, by which oneparty prosecutes another for the enforcement or protection of a ri#ht, or the prosecution or

redress of a wron#

PLEADINGS; RIGHT OF ACTION DISTINGUISHED FROM CAUSE OF ACTION.

The term ri#ht of action is the ri#ht to commence and maintain an action !n the law on

pleadin#s, ri#ht of action is distin#uished from cause of action in that the former is a remedial

ri#ht belon#in# to some persons, while the latter is a formal statement of the operative factsthat #ive rise to such remedial ri#ht The former is a matter of ri#ht and depends on the

substantive law, while the latter is a matter of statement and is #overned by the law of

procedure

COMPLAINT; MUST CHARGE BUT ONE OFFENSE; WAIVER OF ERRONEOUS

COMPLAINT.The information herein is violative of ection 19 4ule 117 of the 4ules on /riminal rocedure

which states that a complaint or information must char#e but one offense e&cept in certain

cases The four accused are char#ed with two separate offenses of ille#al possession of

firearms and robbery with homicide hen each one of two offenses committed is punishableby two different laws, they cannot be char#ed in one information as a comple& crime but must

be re#arded as two separate and distinct offenses, each one to be the subject of separate

informations hen duplicity of offenses e&ists in an information the accused must present hisobjection by filin# a motion to uash the information on the #round of duplicity of offenses !f

the accused fails to object and #oes to trial under the information which contains a description

of more than one offense, the #eneral rule is he thereby waives the objection and may be found#uilty of and should be sentenced for, as many offenses as are char#ed in the information and

proved durin# trial (eople v *edina A hil 19.; eople v *iana A7 hil


20/45

CIVIL PROCEDURE; SERVICE OF PLEADING BY REGISTERED MAIL;

COMPLETED UPON ACTUAL RECEIPT BY ADDRESSEEThe #eneral rule is that service by re#istered mail is complete upon actual receipt thereof by

the addressee The e&ception is where the addressee does not claim his mail within A days from

the date of the first notice of the postmaster, in which case the service takes effect upon thee&piration of such period !nasmuch as the e&ception refers to only constructive and not actual

service, such e&ception must be applied only upon conclusive proof that a first notice was duly

sent by the postmaster to the addressee The presumption that official duty has been re#ularlyperformed is not applicable where there is evidence to the contrary, as in the case at bar

REPLEVIN;DEFENDANT MAY DEMAND RETURN OF PROPERTY BY FILING

REDELIVERY BOND AND WITHIN FIVE DAYS AFTER TAKING OF PROPERTY.This /ourt has e&plained that a defendant in a replevin suit, may demand the return of

possession of the property replevined by filin# a redelivery bond e&ecuted to the plaintiff in

double the value of the property as stated in the plaintiff"s affidavit, within the periods specified

in ections A and of 4ule 7 of the 4ules of /ourt nder ection A, petitioner may =at anytime before the delivery of the property to the plaintiff" reuire the return of the property; in

ection , he may do so, =within five (A) days after the takin# of the property by the officer='oth these periods are mandatory in character Thus, a lower court which approves a

counterbond filed beyond the statutory periods, acts in e&cess of jurisdiction

RES JUDICATA; IDENTITY OF ISSUES; RULE ON CONCLUSIVENESS OF

JUDGMENT.

hen there is no identity of causes of action, but only an identity of issues, there e&ists res

judicata in the concept of conclusiveness of jud#ment %lthou#h it does not have the sameeffect as res judicata in the form of bar by former jud#ment which prohibits the prosecution of

a second action upon the same claim, demand, or cause of action, the rule on conclusiveness of

jud#ment bars the reliti#ation of particular facts or issues in another liti#ation between thesame parties on a different claim or cause of action

PREJUDICIAL QUESTION; REQUISITES.Eor a civil action to be considered prejudicial to a criminal case as to cause the suspension of

the criminal proceedin#s until the final resolution of the civil, the followin# reuisites must be

present: (1) the civil case involves facts intimately related to those upon which the criminal

prosecution would be based; (2) in the resolution of the issue or issues raised in the civil action,the #uilt or innocence of the accused would necessarily be determined; and (9) jurisdiction to

try said uestion must be lod#ed in another tribunal

QUANTUM OF EVIDENCE REQUIRED IN PRELIMINARY INVESTIGATIONS

The uantum of evidence now reuired in preliminary investi#ation is such evidence sufficient

to =en#ender a well founded belief= as to the fact of the commission of a crime and therespondent"s probable #uilt thereof % preliminary investi#ation is not the occasion for the full

and e&haustive display of the parties" evidence; it is for the presentation of such evidence only

as may en#ender a well #rounded belief that an offense has been committed and that the

accused is probably #uilty thereof


21/45

APPEALS; DUTY OF APPELLANT TO PROSECUTE HIS APPEAL WITH

REASONABLE DILIGENCE.

% rule lon# familiar to practitioners in this jurisdiction is that it is the duty of the appellant toprosecute his appeal with reasonable dili#ence +e cannot simply fold his arms and say that it

is the duty of the /lerk of /ourt of Eirst !nstance under the provisions of ection 11, 4ule .1

of the 4ules of /ourt to transmit the record on appeal to the appellate court !t is appellantsduty to make the /lerk act and, if necessary, procure a court order to compel him to act +e

cannot idly sit by and wait till this is done +e cannot afterwards wash his hands and say that

delay in the transmittal of the record on appeal was not his fault Eor indeed, this duty imposedupon him was precisely to spur on the slothful

PRESUMPTION OF REGULARITY IN THE PERFORMANCE OF OFFICIAL

FUNCTIONS; WHEN PRESUMPTION WILL NOT ARISE.hen there are several related acts supposed to be performed by a public officer or employee

in re#ard to a particular matter, the presumption of re#ularity in the performance of official

functions would not arise and be considered as comprehendin# all the reuired acts, if the

certification issued by the proper office refers only to some of such acts, particularly ininstances wherein proof of whether or not all of them have been performed is available under

the law or office re#ulations to the officer makin# the certification !n other words, theomission of some of the acts in the certification may justify the inference that from the proof

available to the officer there is no showin# that they have also been performed

CREDIBILITY OF WITNESSES; GENERALLY BINDING AND CONCLUSIVE;

BEST LEFT TO DETERMINATION OF TRIAL COURT JUDGE.

here the bone of contention is the credibility of a witness, settled is the rule that the trial

courtCs assessment of a witnessC credibility is accorded #reat wei#ht by appellate courts absentany showin# that the trial court overlooked certain matters which, if taken into consideration,

would have materially affected the outcome of the case %nd where the trial courtCs findin#s

have been affirmed by the /ourt of %ppeals, these are #enerally bindin# and conclusive uponthis /ourt The determination of the credibility of witnesses is best left to the trial court jud#e

because of his uniue opportunity to observe their deportment and demeanor on the witness

stand, a vanta#e point denied appellate tribunals

JUDICIAL BONDS; NATURE.

Kudicial bonds are contractual in nature They constitute a special class of contracts of #uaranty

since they are #iven by virtue of judicial order Bven if the appeal bond is defective, a situationnot true in the present case, as lon# as it is not void and #iven in #ood faith and not for the

purpose of delay, the trial /ourt may order its amendment The appeal should not be dismissed

without #ivin# the appellant an opportunity to perfect the bond or to file a new bond This/ourt even held that an appeal bond si#ned by one bondsman is not defective as to justify

dismissal of the appeal

CRIMINAL PROCEDURE; PROSECUTION OF CRIMINAL CASE;

RESPONSIBILITY OF GOVERNMENT PROSECUTOR.

!t is a&iomatic that the prosecution of a criminal case is the responsibility of the #overnment

prosecutor and must always be under his control This is true even if a private prosecutor isallowed to assist him and actually handles the e&amination of the witnesses and the


22/45

introduction of other evidence The witnesses, even if they are the complainin# witnesses

cannot act for the prosecutor in the handlin# of the case They have no personality to move for

its dismissal or revival as they are not even parties thereto nor do they represent the parties tothe action Their only function is to testify !n a criminal prosecution, the plaintiff is

represented by the #overnment prosecutor, or one actin# under his authority, and by no one

else

CERTIORARI; WILL NOT LIE UNLESS A MOTION FOR RECONSIDERATION IS

FILED FIRST; E%CEPTIONSThe rule is that certiorari as a special civil action will not lie unless a motion for

reconsideration is filed before the respondent tribunal to allow it an opportunity to correct its

imputed errors>Tan vs /%, 2


23/45

been found to determine the value of the testimony of a witness than its conformity to the

knowled#e and common e&perience of mankind %s bewailed by the court below, the theory

espoused by appellant =is ta&in# too much the credulity of this /ourt, an insult to the humbleintelli#ence and the common sense of this /ourt

COUNTERBOND OF DEFENDANT; PURPOSE.To forestall the possession by the plaintiff of the property our procedural law provides that the

defendant must post a counterbond and must furnish the plaintiff with the copy of the

undertakin# %#ain, if only for the purpose of emphasis, this is reuired to protect the plaintiff,should his action be adjud#ed meritorious e need not mention, that this procedure was

purposely formulated to allow the defendant to continue possessin# the property 3ot to reuire

him to post any bond would likewise, be counter to the objectives and intent sou#ht by the

framers of the law !n short, whoever holds the property must post the bond to stand as securityto the non-holder pendin# the final determination of the case

PROCEDURAL DUE PROCESS IN DISCIPLINARY CASES OF STUDENTS.

The imposition of disciplinary sanctions reuires observance of procedural due process %nd itbears stressin# that due process in disciplinary cases involvin# students does not entail

proceedin#s and hearin#s similar to those prescribed for actions and proceedin#s in courts ofjustice The proceedin#s in student discipline cases may be summary; and cross-e&amination is

not, contrary to petitioners" view, an essential part thereof There are withal minimum standards

which must be met to satisfy the demands of procedural due process; and these are, that (1) thestudents must be informed in writin# of the nature and cause of any accusation a#ainst them;

(2) they shall have the ri#ht to answer the char#es a#ainst them, with the assistance of counsel,

if desired; (9) they shall be informed of the evidence a#ainst them; (.) they shall have the ri#ht

to adduce evidence in their own behalf; and (A) the evidence must be duly considered by theinvesti#atin# committee or official desi#nated by the school authorities to hear and decide the

case

CIVIL PROCEDURE; NOTICES; CERTIFICATION BY POSTMASTER.

% certification from the postmaster would be the best evidence to prove that the notice hasbeen validly sent The mailman may also testify that the notice was actually delivered, as we

held in %ldecoa vs +on %rellano and iuenDa The postmaster should certify not only that

the notice was issued or sent but also as to how, when and to whom the delivery thereof was

made /onseuently, it cannot be too much to e&pect that when the post office makes acertification re#ardin# delivery of re#istered mail, such certification should include the data not

only as to whether or not the correspondin# notices were issued or sent but also as to how,

when and to whom the delivery thereof was made

CRIMINAL PROCEDURE; ACCUSED SHALL BE INFORMED OF NATURE AND

CAUSE OF ACCUSATION.!n all criminal prosecutions, the accused shall first be informed of the nature and cause of the

accusation a#ainst him The ri#ht of the accused to be informed of the char#es a#ainst him is

e&plicit in ec 1(b) 4ule 11A of the 4ules of /riminal rocedure To ensure that the due

process ri#hts of an accused are observed, every indictment must embody the essentialelements of the crime char#ed with reasonable particularity as to the name of the accused, the


24/45

time and place of commission of the offense, and the circumstances thereof 8ne such

particular circumstance is conspiracy where two or more persons are char#ed in an

information

CERTIORARI; MOTION FOR RECONSIDERATION NEEDED.

!n essence, a writ of certiorari may be issued only when petitioner has no other plain, speedyand adeuate remedy in the ordinary course of law +ence, #enerally, a motion for

reconsideration must first be filed with the lower court prior to resortin# to the e&traordinary

writ of certiorari since a motion for reconsideration is still considered an adeuate remedy inthe ordinary course of law The rationale for the filin# of a motion for reconsideration is to

#ive an opportunity to the lower court to correct its imputed errors 5enerally, only when a

motion for reconsideration has been filed and subseuently denied can petitioner avail of the

remedy of the writ of certiorari

TESTIMONY OF WITNESSES; WHEN NORMALLY ACCEPTED; DUTY OF TRIAL

COURT TO ACCEPT TESTIMONY.

here considerations of visibility are favorable and the witness does not appear to be biaseda#ainst the accused, his or her assertions as to the identity of the malefactor should be normally

accepted This is more so when the witness is the victim or his near relative because thesewitnesses usually strive to remember the faces of the assailants *oreover, the trial court #ave

credence to the prosecution"s identification of the appellants as the culprits ubject to

e&ceptions which do not obtain in these cases, the trial court is in a better position to decidethis uestion, havin# seen and heard the witnesses themselves and observed their deportment

and manner of testifyin# durin# the trial

INTERVENTION; MERELY COLLATERAL OR ANCILLARY TO PRINCIPAL

ACTION.

%n intervention has been re#arded as =merely collateral or accessory or ancillary to the

principal action and not an independent proceedin#; an interlocutory proceedin# dependent onor subsidiary to, the case between the ori#inal parties= (Erancisco, 4ules of /ourt, @ol 1) The

main action havin# ceased to e&ist, there is no pendin# proceedin# whereon the intervention

may be based

PLEADINGS; COMPLIANCE WITH PROCEDURAL IMPERATIVES.

!t is a settled rule that a tribunal may at any time take judicial notice of the records of a case

pendin# before it, and satisfy itself that copies of the pleadin#s filed by the parties are in thenumbers reuired by its rules The failure of a pleadin# to comply with such procedural

imperative set by the court, leaves the latter the discretion either to reject that pleadin# or order

completion of the number of copies thereof here, however, the party whose pleadin# hasbeen shunted aside offers to show that it has fully complied with the reuirements of the rules

and that the records kept by the tribunal contain inaccurate entries, the latter body should pause

and listen, and #ive that party a day in court

VENUE OF SUITS;AGREEMENT OF PARTIES;WHEN PERMISSIVE.

!n interpretin# situations, inuiry must be made as to whether or not the a#reement is

restrictive in the sense that the suit may be filed only in the place a#reed upon or merely


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permissive in that the parties may file their suits not only in the place a#reed upon but also in

the places fi&ed by the rules

RECOVERY OF OWNERSHIP OR POSSESSION OF PROPERTY.

The =proper action=, the object of which is for the recovery of ownership or possession of the

property seiDed by the sheriff, is and should be an entirely separate and distinct action from thatin which e&ecution has issued, if instituted by a stran#er to the latter suit

RIGHT OF ACTION; WHEN IT ACCRUES AND BECOME OPERATIVE.

The ri#ht of action sprin#s from the cause of action, but does not accrue until all the facts

which constitute the cause of action have occurred hen there is an invasion of primary

ri#hts, then and not until then does the adjective or remedial law become operative, and underit arise ri#hts of action There can be no ri#ht of action until there has been a wron# a violation

of a le#al ri#ht and it is then #iven by the adjective law

CONTEMPT;NOT SUBJECT TO SEPARATE ACTIONThe contention that a party"s complaint for contempt must be the subject of a separate action

would nullify contempt proceedin#s as means of securin# obedience to the lawful processes ofa court-this theory would reward in#enuity and cunnin# in revisin# orders which substantially

are the same as the order previously prohibited by the court

CRIMINAL PROCEDURE; DUTY OF FISCAL IN COMMENCING CRIMINAL

ACTIONS AGAINST PERSONS RESPONSIBLE FOR AN OFFENSE.

!t must be admitted that ection 1, 4ule 117 makes it mandatory on the Eiscal to commence

criminal actions a#ainst all persons who appear to be responsible for an offense, but this doesnot mean that he has no discretion at all +e still is called on to determine whether the evidence

before him is enou#h to justify a reasonable belief that a person has committed an offense !t is

the prero#ative of the Eiscal, on the basis of the evidence #athered by him, in the e&ercise ofsuch discretion, to char#e the accused to the e&clusion of others

WRIT OF PRELIMINARY MANDATORY INJUNCTION; REQUISITES.!t is a lon# settled rule that for a writ of preliminary mandatory injunction to issue, the

followin# reuisites must be present: (1) that the complainant has a clear le#al ri#ht; (2) that

his ri#ht has been violated and the invasion is material and substantial; and (9) there is an

ur#ent and permanent necessity for the writ to prevent serious dama#e Bually settled is that,as a rule, injunction will not be #ranted to take property out of the possession or control of one

party and place it into that of another whose title has not clearly been established by law

CIRCUMSTANCIAL EVIDENCE; REQUISITES TO SUSTAIN CONVICTION OF AN

ACCUSED.

/ircumstantial evidence may be resorted to in provin# the identity of the accused when directevidence is not available, otherwise felons would #o scot-free and the community would be

denied proper protection The rules on evidence and jurisprudence sustain the conviction of an

accused throu#h circumstantial evidence when the followin# reuisites concur: (1) there must

be more than one circumstance; (2) the inference must be based on proven facts; and (9) the


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combination of all circumstances produces a conviction beyond doubt of the #uilt of the

accused

INTERVENTION; DEFINED.

!ntervention is defined as a =proceedin# in a suit or action by which a third person is permitted

by the court to make himself a party, either joinin# plaintiff in claimin# what is sou#ht by thecomplaint, or unitin# with defendant in resistin# the claims of plaintiff, or demandin#

somethin# adversely to both of them; the act or proceedin# by which a third person becomes a

party in a suit pendin# between others; the admission, by leave of court, of a person not anori#inal party to pendin# le#al proceedin#s, by which such person becomes a party thereto for

the protection of some ri#ht or interest alle#ed by him to be affected by such proceedin#s

ABATEMENT OR DISMISSAL OF ACTION; LITIS PENDENTIA!n order to constitute a #round for the abatement or dismissal of an action, litis pendentia must

e&hibit the concurrnece of the followin# reuisites: (a) identity of parties, or at least such as

representin# the same interest in both actions; (b) identity of ri#hts asserted and relief prayed

for, the relief bein# founded on the same facts; and (c) identity in the two cases should be suchthat the jud#ment that may be rendered in the pendin# case would, re#ardless of which party is

successful, amount to res judicata in the other

MOTIONS; MUST MEET NOTICE REQUIREMENTS;OTHERWISE CONSIDERED

A WORTHLESS PIECE OF PAPER.

ection . of 4ule 1A of the 4ules of /ourt reuires that notice of motion be served by the

movant on all parties concerned at least three (9) days before its hearin# ection A of the same

4ule provides that the notice shall be directed to the parties concerned, and shall state the time

and place for the hearin# of the motion % motion which does not meet the reuirements ofections . and A of 4ule 1A of the 4ules of /ourt is considered a worthless piece of paper

which the clerk has no ri#ht to receive and the court has no authority to act upon ervice of

copy of a motion containin# notice of the time and place of hearin# of said motion is amandatory reuirement

RES JUDICATA; UNDERLYING PHILOSOPHY.The underlyin# philosophy of the doctrine of res judicata is that parties ou#ht not to be

permitted to liti#ate the same issue more than once; that when a ri#ht or fact has been judicially

tried and determined by a court of competent jurisdiction, or an opportunity for such a trial has

been #iven, the jud#ment of the court, so lon# as it remains unreversed, should be conclusiveupon the parties and those in privity with them in law or estate, (*arapao v *endoDa, 11

/4%


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COMPLAINT AND INFORMATION;MOTION TO QUASH OR DISMISS

!t is clear from ection 2 of 4ule 11


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CIVIL LAW:

ANNULMENT;ROOT CAUSE OF PSYCHOLOGICAL INCAPACITYThe root cause of the psycholo#ical incapacity must be: (a) medically or clinically identified,

(b) alle#ed in the complaint, (c) sufficiently proven by e&perts, and (d) clearly e&plained in the

decision B&pert evidence may be #iven by ualified psychiatrists and clinical psycholo#ists

MORTGAGE; SPECIAL POWERS OF ATTORNEY;EFFECT AGAINST THIRD

PERSONS WITH NO KNOWLEDGE.%bsent a valid revocation duly furnished to the mort#a#ee, pecial owers of %ttorney

continue to have force and effect as a#ainst third persons who had no knowled#e of such lack

of authority

AGENCY; SCOPE OF AUTHORITY.

%s far as third persons are concerned, an act is deemed to have been performed within the

scope of the a#ent"s authority if such is within the the terms of the power of attorney as written

even if the a#ent has in fact e&ceeded the limits of his authority accordin# to the understandin#between the principal and the a#ent

ADOPTION; STATUTES; PURPOSE

The main purpose of adoption statutes is the promotion of the welfare of children The law

must also be applied with compassion, understandin# and less severity in view of the fact thatit is intended to provide home, love, care and education for less fortunate children

CONSIGNATION; INAPPLICABLE TO LEASE WITH OPTION TO BUY

!n @da de Luirino v alarca, it was ruled that consi#nation referred to in %rticle 12A of the/ivil /ode is inapplicable to a lease with option to buy because said provision refers to

consi#nation as one of the means for the payment or dischar#e of a =debt,= whereas the lessee

was not indebted to the lessor for the price of the leased premises The lessee merely e&erciseda ri#ht of option and had no obli#ation to pay said price until e&ecution of the deed of sale in

his favor, which the lessor refused to do

PROPERTY; ACCRETION; REQUISITES

%ccretion as a mode of acuirin# property under %rticle .A< of the /ivil /ode, reuires the

concurrence of the followin# reuisites: (1) that the accumulation of soil or sediment be

#radual and imperceptible; (2) that it be the result of the action of the waters of the river; and(9) that the land where the accretion takes place is adjacent to the bank of the river

OBLIGATIONS AND CONTRACTS; TENDER OF PAYMENT OF A JUDGMENT

NOT SAME AS TENDER OF PAYMENT OF CONTRACTUAL DEBT.

*oreover, as previously shown, the ri#hts and obli#ations of the parties arose from a jud#ment,

not from contract and therefore the /ivil /ode reuirements as to consi#nation are notapplicable Thus, in case of refusal of a tender of the amount due on a jud#ment, the court may

direct the money to be paid in court and when this is done, order satisfaction of the jud#ment to

be entered The tender of payment of a jud#ment is not the same as tender of payment of a

contractual debt and consi#nation of the money due from a debtor to a creditor The reuisitesof consi#nation under %rt 12A et se do not apply to the former


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/ourt e&plained e&traordinary inflation thus: =B&traordinary inflation e&ists when "there is a

decrease or increase in the purchasin# power of the hilippine currency which is unusual or

beyond the common fluctuation in the value of said currency, and such decrease or increasecould not have been reasonably foreseen or was manifestly beyond the contemplation of the

parties at the time of the establishment of the obli#ation (Tolentino, /ommentaries and

Kurisprudence on the /ivil /ode, @ol !@, p 26.)

ALTERATION PLANS;MAJORITY OF HOMEOWNERS CONSENT NEEDED.

!n alteration plans, written approval of the 3ational +ousin# %uthority alone is not sufficient!t must be coupled with the written conformity or consent of the duly or#aniDed homeowners

association or the majority of the lot buyers

ACTUAL OR COMPENSATORY DAMAGES; MUST BE PROVED WITH

REASONABLE DEGREE OF CERTAINTY.

%ctual or compensatory dama#es cannot be presumed, but must be duly proved, and proved

with reasonable de#ree of certainty % court cannot rely on speculation, conjecture or

#uesswork as to the fact and amount of dama#es, but must depend upon competent proof thatthey have suffered and on evidence of the actual amount thereof

WILLS AND SUCCESSION; PROBATE OF A WILL; DOES NOT LOOK INTO ITS

INTRINSIC VALIDITY.

3ormally, the probate of a will does not look into its intrinsic validity The authentication of awill decides no other uestions than such as touch upon the capacity of the testator and the

compliance with those reuisites or solemnities which the law prescribes for the validity of the

wills !t does not determine nor even by implication prejud#e the validity or efficiency of the

provisions of the will, thus may be impu#ned as bein# vicious or null, notwithstandin# itsauthentication The uestion relatin# to these points remain entirely unaffected, and may be

raised even after the will has been authenticated

DIFFERENCE BETWEEN CAUSE AND MOTIVE.

/ause is the essential reason for the contract, while motive is the particular reason of a

contractin# party which does not affect the other party and which does not preclude thee&istence of a different consideration %rticle 19A1 of the /ivil /ode provides that =the

particular motives of the parties in enterin# into a contract are different from the cause

thereof=

PAROL PARTITIONS; MAY BE SUSTAINED ON GROUND OF ESTOPPEL; MAY

BE RECOGNIED BY COURT FOR CONCLUDING RIGHTS OF PARTIES.

!n numerous cases it has been held or stated that parol partitions may be sustained on the#round of estoppel of the parties to assert the ri#hts of a tenant in common as to parts of land

divided by parol partition as to which possession in severalty was taken and acts of individual

ownership were e&ercised %nd a court of euity will reco#niDe the a#reement and decree it tobe valid and effectual for the purpose of concludin# the ri#ht of the parties as between each

other to hold their respective parts in severalty % parol partition may also be sustained on the

#round that the parties thereto have acuiesced in and ratified the partition by takin#

possession in severalty, e&ercisin# acts of ownership with respect thereto, or otherwisereco#niDin# the e&istence of the partition


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PROPERTY; IMPROVEMENTS ON PROPERTY; PROOF NEEDED TO

DETERMINE REIMBURSEMENT.The /ivil /ode says that improvements, =whether for utility or adornment, made on the

separate property of the spouses throu#h advancements from the partnership or throu#h the

industry of either the husband or the wife, belon# to the conju#al partnership,= and buildin#s=constructed, at the e&pense of the partnership, durin# the marria#e on land belon#in# to one of

the spouses, also pertain to the partnership, but the value of the land shall be reimbursed to the

spouse who owns the same= roof, therefore, is needful of the time of the makin# orconstruction of the improvements and the source of the funds used therefor, in order to

determine the character of the improvements as belon#in# to the conju#al partnership or to one

spouse separately

DAMAGES UNDER ARTICLE !! OF CIVIL CODE; ONLY PREPONDERANCE OF

EVIDENCE REQUIRED.

To hold a person liable for dama#es under %rticle 99 of the /ivil /ode, only a preponderance

of evidence is reuired %n acuittal in a criminal case is not a bar to the filin# of an action forcivil dama#es, for one may not be criminally liable and still be civilly liable Thus, the outcome

or result of the criminal case, whether an acuittal or conviction, is really inconseuential andwill be of no moment in the civil action

CONSIGNATION; INAPPLICABLE TO A LEASE WITH OPTION TO BUY.!n @da de Luirino v alarca, it was ruled that consi#nation referred to in %rticle 12A of the

/ivil /ode is inapplicable to a lease with option to buy because said provision refers to

consi#nation as one of the means for the payment or dischar#e of a =debt,= whereas the lessee

was not indebted to the lessor for the price of the leased premises The lessee merely e&erciseda ri#ht of option and had no obli#ation to pay said price until e&ecution of the deed of sale in

his favor, which the lessor refused to do

POSSESSION; MUST BE ADVERSE TO CONSITUTE THE FOUNDATION OF A

PRESCRIPTIVE RIGHT.

ossession, under the /ivil /ode, to constitute the foundation of a prescriptive ri#ht, must bepossession under claim of title (en concepto de dueno), or to use the common law euivalent of

the term, it must be adverse %cts of possessory character performed by one who holds by mere

tolerance of the owner are clearly not en concepto de dueno, and such possessory acts, no

matter how lon# so continued, do not start the runnin# of the period of prescription

ARTICLE ) OF THE CIVIL CODE; TWO OPTIONS FOR MAKING A

PARTITION OF ESTATE.%rticle 1767 of the 3ew /ivil /ode allows a person to make a partition of his estate either by

an act inter vivos or by will and such partition shall be respected insofar as it does not

prejudice the le#itime of the compulsory heirs hile the law prohibits contracts upon futureinheritance, the partition by the parent, as provided in %rt 1767, is a case e&pressly authoriDed

by law %rt 1767 of the /ivil /ode clearly #ives a person two options in makin# a partition of

his estate; either by an act inter vivos or by will hen a person makes a partition by will, it is

imperative that such partition must be e&ecuted in accordance with the provisions of the law onwills; however, when a person makes the partition of his estate by an act inter vivos, such


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partition may even be oral or written, and need not be in the form of a will, provided that the

partition does not prejudice the le#itime of compulsory heirs

DAMAGES; MERE FILING OF A COMPLAINT IS NOT PER SE EVIDENCE OF ILL

WILL ON WHICH A CLAIM FOR DAMGES MAY BE BASED.

!t has not been sufficiently established that the complaint they filed was intended merely toharass and place petitioner in disrepute as they apparently were pursuin# a cause of action they

sincerely believed was meritorious The fact that they have failed does not necessarily mean

that they were actin# in bad faith The mere filin# of a complaint a#ainst a person, while it maycause him some an&iety, is not per se evidence of ill will on which a claim for dama#es may be

based % contrary role would discoura#e peaceful recourse to the courts of justice and induce

resort to methods less than le#al, and perhaps even violent

MORTGAGE; SUBORDINATE LIEN HOLDER; A PROPER PARTY TO A

FORECLOSURE PROCEEDING.

% subordinate lien holder is a proper, even a necessary, but not an indispensable, party to a

foreclosure proceedin# %ppropriate relief could be #ranted by the court to the mort#a#ee inthe foreclosure proceedin#, without affectin# the ri#hts of the subordinate lien holders The

effect of the failure on the part of the mort#a#ee to make the subordinate lien holder adefendant is that the decree entered in the foreclosure proceedin# would not deprive the

subordinate lien holder of his ri#ht of redemption % decree of foreclosure in a suit to which

the holders of a second lien are not parties leaves the euity of redemption in favor of such lienholders unforeclosed and unaffected

SALE OF LAND IS VALID REGARDLESS OF FORM; REQUISITE UNDER

ARTICLE $() OF THE CIVIL CODE FOR CONVENIENCE ONLY.% sale of land is valid re#ardless of the form it may have been entered into The reuisite form

under %rticle 1.A6 of the /ivil /ode is merely for #reater efficacy or convenience and the

failure to comply therewith does not affect the validity and bindin# effect of the act betweenthe parties !f the law reuires a document or other special form, as in the sale of real property,

the contractin# parties may compel each other to observe that form, once the contract has been

perfected Their ri#ht may be e&ercised simultaneously with action upon the contract

VALID TENDER OF PAYMENT; ENOUGH TO E%ERCISE RIGHT OF

REPURCHASE.

ince the case at bar involves the e&ercise of the ri#ht to repurchase, a showin# that petitionermade a valid tender of payment is sufficient !t is enou#h that a sincere or #enuine tender of

payment and not a mock or deceptive one was made The fact that he deposited the amount of

repurchase money with the /lerk of /ourt was simply an additional security for the petitioner!t was not an essential act that had to be performed after tender of payment was refused by the

private respondent althou#h it may serve to indicate the veracity of desire to comply with the

obli#ation

ARTICLE !! OF THE CIVIL CODE; REASON FOR BURDEN OF PROOF

To subordinate the civil action contemplated in %rts 99 and 21


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independently of the criminal proceedin# and re#ardless of the result of the latter= %rt 99 of

the /ivil /ode contemplates a civil action for recovery of dama#es that is entirely unrelated to

the purely criminal aspect of the case This is the reason why only a preponderance ofevidence and not proof beyond reasonable doubt is deemed sufficient in such civil action

POSSESSION;ACTION FOR FORCIBLE ENTRY AND DETAINER;PLAINTIFF'SBURDEN OF PROOF.

!n an action for forcible entry and detainer, the main issue is one of priority of possession The

le#al ri#ht thereto is not essential to the possessor"s cause of action, for no one may take lawinto his own hands and forcibly eject another or deprive him of his possession by stealth, even

if his title thereto were uestionable or actually disputed in another case !f the plaintiff can

prove prior physical possession in himself, he may recover such possession even from the

owner, but on the other hand, if he cannot prove such prior physical possession, he has no ri#htof action for forcible entry and detainer even if he should be the owner of the property

OWNERSHIP AND POSSESSION; DISTINGUISHED.

!t must be stressed Jthat possession and ownership are distinct le#al concepts 8wnershipe&ists when a thin# pertainin# to one person is completely subjected to his will in a manner not

prohibited by law and consistent with the ri#hts of others 8wnership confers certain ri#hts tothe owner, one of which is the ri#ht to dispose of the thin# by way of sale 8n the other hand,

possession is defined as the hol

Documents

Legal Briefs - Feb.7.07