Statcon Reviewer Chp 1&2

STATCON 2011

CHUA . CONTRERAS . MELLA . TENGCO 1-D

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Chapter 1: Statutes A. In general Law

Ø In its jural and generic sense refers to a whole body or system of law

Ø A rule of conduct formulated and made obligatory by legitimate power of the state

Ø INCLUDES: 1. Statutes enacted by the

legislature 2. P.D. and E.O. issued by the

Pres. In the exercise of executive power

3. Pres. Issuance in the exercise of his ordinance powers

4. SC rulings 5. Ordinances passed by the

Sanggunians of LGU’s Statutes

Ø Is an act of the legislature as an organized body, expressed in the form and passed according to the procedure, required to constitute it as part of the law of the land.

Ø Statutes enacted by law are those passed by the ff:

1. Philippine Commission 2. Philippine Legislature 3. Batasang Pambansa 4. Congress of the Philippines

Ø P.D. and E.O. same category and binding force.

Ø Public and Private statutes: depends on substance rather than on form

Ø Public statues can be classified into: 1. General: applies to the whole

state and to all people and class.

2. Special: relates to a particular person, thing of a class or community, individual or thing.

3. Local: operation is confined in a specific place or locality. e.g. municipal ordinance.

Ø Based on Duration: 1. Permanent: operation not

limited in duration but continues until repealed. No lapse of fixed period or disuse.

2. Temporary: duration for a limited period of time fixed in the statute or ceases upon the happening of an event.

Ø Other classes:

1. As to Application: prospective or retroactive

2. Operation:declaratory,curative,mandatory,directory, substantive, remedial and penal.

3. Forms: affirmative or negative Ø Statutes are consecutively numbered

and identified by the authorities that enacted them.

1. Phil. Com and Phil. Legislature from 1901-1935: PUBLIC ACTS

2. Commonwealth from 1936-1946: COMMONWEALTH ACTS

3. Congress from 1946-1972 and under 1987 const. : REPUBLIC ACTS

4. BATASANG PAMBANSA 5. P.D. AND E.O. also serially

numbered. B. Enactment of Statutes

Ø Steps and actions taken and words and language used to enact statutes are important part of the legislative history and it is important in ascertaining Legislative intent in the interpretation of ambiguous provisions of law.

Legislative Power of the Congress Ø Power is vested in the Congress, Art. VI

Sec. 1 of the Constitution Ø Composed of the Senate and the House

of Representatives (both chambers) Ø Power to make, alter and repeal laws.

(explicitly provided in the Consti.) Ø Broad, general and comprehensive Ø Embraces all subjects and extends to

matters of general concern or common interest.

Ø House: sensitive to local needs and problems e.g. taxation

Ø Senate: approach from national perspective

Ø The grant of legislative power means a grant of all legislative power (executive and judiciary)

Ø Legislation is vast: e.g. Article II consti- nonself –executing which needs further legislation.

Ø Self-executing: does not necessarily prevent congress from enacting legislations within their confines, penalties and supply minor details.

Ø Non-Self-executing: requires Congress to enact enabling legislations.

Procedural requirements in enacting a law

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Ø Only in a manner which the Constitution requires and in accordance with the procedures provided.

Ø Congress also provides requirements aside from Constitutional requirements.

Ø Rules of both houses of Congress: procedure rules. Pursuant to the constitutional provision empowering it to determine its rules of proceedings.

Ø Mere violation of internal rules without violation of the Constitution or rights of the individual : law may not be declared UNCONSTITUTIONAL.

Ø Courts could not interfere, since they are procedural, rather it is subject to the modification or revocation of the body.

STEPS in the passage of a BILL to LAW Ø Bill is a proposed legislative measure

proposed by a member/s of Congress fro enactment into law.

Ø Signed by authors and passed to the Secretary of the House

Ø Either from the upper or lower house except appropriations, revenue, or tariff bills, inc. of public debt, private and bills of local application which shall originate from House of Rep.

1. First reading - reading of number and title

of the bill - referral to appropriate

committee fro study and recommendation

- Committee may hold public hearings on the proposed measures and submit its report and recommendation for Calendar for second reading.

2. Second reading - bill shall be read in full with

amendments proposed by the committee.

- Bill subject to debates,pertinent motions and amendments.

- Vote on the second reading - If approved will be included

in the Calendar of bills for third reading.

- On third reading, submitted for final vote by yeas and nays.

3. Third reading - Art. VI sec. 26(2): bill is

approved by either house of it has gone three (3)

readings on separate days, printing and distribution of copies three days before passage

- Except if the President certifies necessity, requirements can be dispensed with.

- Upon last reading, no amendment thereto shall be allowed and vote shall be entered in the journal.

- Presidential certification not subject to judicial review for it merely involves procedural req. designed to insure bills are duly approved by members of Congress.

4. Conference Committee reports - submitted to the other

House for concurrence. - If approved by the other

house without amendments, the bill is passed by the Congress and is transmitted to the President for appropriate action.

- If other house introduce amendments and the House from which it originated did not agree it will be settled in the CONFERENCE COMMITTEES of both chambers. Report or recommendation shall be approved by both houses.

- CONFERENCE MEETINGS as provided in the Rules of Senate and House is a mechanism for compromising differences between the Senate and the House in the passage of the bill into law.

- CM may deal generally with the subject matter, unexpected results , beyond its mandate, it can include in its report a new provision—referred to as THIRD BODY OF LEGISLATURE.

- 3 versions of the bill: from the house, senate and the conference committee.

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- If amendments of CC approved by both houses then it’s the final version: conclusive under the doctrine of enrolled bill, that will be submitted to the President for approval.

- REQUIREMENT of readings does not apply to the CC reports, the only requirement is the approval of both houses.

5. Authentication of bills - law making process of the

Congress ends when the bill is approved of the body.

- Before passing to the President for consideration, the bill is authenticated.

- AUTHENTICATION: signed by the Speaker and Senate President of the printed copy of the approved bill, certified by the respective secretaries of both houses.

6. President’s approval or veto - Constitution : every bill

passed by congress shall be presented to the President.

- If he approves, he shall sign it.

- If he doesn’t he shall veto it and return it to the house where it originated.

- The House shall enter objections in its journal and proceed to reconsider it

- If 2/3 of the house where the bill originated shall agree to pass the bill it shall be sent to the other house and if approved by 2/3 of that house it shall become a law.

- Votes of both houses shall be determined by yeas and nays and members voting against it shall be recorded in the journal.

- President shall communicate his veto to the House where the bill originated within 30 days after date of receipt thereof, otherwise it shall become a law as if he signed it.

Ø BILL becomes LAW in 3 ways:

- when President signs it - when President does not

sign it nor communicate his veto within 30 days

- when vetoed bill is repassed by Congress by 2/3 vote of all its members, each house voting separately.

C. Parts of Statutes Ø Preamble

- a prefatory statement or explanation or a finding of facts, reciting the purpose, reason, or occasion for making the law. - found after the enacting clause before the body of the law - legislature seldom put it in statutes because the purpose is stated in the explanatory note. -P.D and E.O. generally have Preambles, it plays an important role in the construction.

Ø Title of statute

- Constitution: “every bill passed by Congress shall embrace only one subject which shall be expressed in the title thereof” -mandatory and a law enacted in violation is UNCONSTITUTIONAL. - dual limitations: 1. Legislature to refrain from conglomeration, under one statute of heterogeneous subjects. 2. Title of the bill should be sufficient enough to notify the legislators and the public of the single subject.

a) Purpose of title requirement -principal purpose is to inform the legislators of the object, nature and scope of the provisions of the bill and to prevent enactment into law of matters which have not been discussed by the legislators. -Aims to: prevent log-rolling legislation, prevent surprise or fraud upon the legislature and to fairly inform the people. - prevents ‘riders’ which is a provision not germane to the subject matter of the bill. -Title is also used to determine legislative intent in the case of ambiguity in the meaning and scope of the statute. -TITLE not required to be an index to the body or to be

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comprehensive as to cover every single detail. It is enough that it fairly indicates the general subject and reasonably cover all provisions of the act so as not to defraud the legislators or the people. - “one title-one subject” rule. The Court is liberal rather than technical.

b) Subject of repeal of Statute - If the title of an act embraces only one subject, it was never claimed that every other act which it repeals or alters by implication must be mentioned in the title of the new act.

c) How requirement of title construed - should be liberally construed - should not be given a

technical interpretation. - Nor its should be too narrow

so as to cripple or impede the power of legislation.

- If there’s doubt to the title’s sufficiency it should be in favor of the constitutionality of the statute.

- Trend in cases as to construe it in such a manner that the courts would not interfere in the legislation.

d) When requirement not applicable -requirement of one bill one subject is embodied in the 1935 Constitution and reenacted in the 1973 and 1987 Const. - requirement only applies to bills which maybe enacted into law. -It is not applicable to laws in force and existing at the time the 1935 Constitution took effect.

e) Effect of insufficiency of title - title in violation of the

constitutional requirement is null and void.

- Subject matter is not sufficiently expressed in the title, that portion therein is void, which leaves the rest in force, unless both invalidity are inseparable both are void.

Ø Enacting Clause - written immediately after the title, which states the authority by which the act is enacted. -PC,PL “by authority of the US, be it enacted by the Pl/PC. When PL became bicameral “be it enacted by the Senate and HR of the Phil. In legislature assembled and by authority of the same.” -Commonwealth : “be it enacted by the national Assemble of the Philippines” changed to “be it enacted by the senate and HR in Congress assembled.(used up to now) - batasang pambansa: “be it enacted by the BP in session assembled.” -P.D. “ Now therefore, I ____, Pres. of the Phil., by virtue of the powers in me vested by the Constitution, do hereby decree as follows:” -E.O. “Now, therefore, I _____, hereby order.”

Ø Purview or body of statute - tells what the law is about - should have one subject matter only- constitutional requirement. -contains: a short title, policy section, definition section, administrative sec., sections prescribing standards of conduct, section imposing sanctions for violation, transitory prov., separability clause, repealing clause and effectivity clause.

Ø Separability Clause - states that if any provision of the act is declared invalid, the remainder shall not be affected. - clause is not controlling, courts may invalidate it. -Presumption: legislature intends the statute to be effective as a whole and would not have passed it if it had foreseen that some parts are invalid. -effect of the clause is to create in the place of such presumption the opposite one of separability.

Ø Repealing Clause - The power to declare a law unconstitutional does not lie with the legislature but with the COURTS.

Ø Effectivity Clause - provision when the law takes effect.

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- usually it shall take 15 days from publication in the O.G. or newspaper of gen. circulation.

Meaning of Certain Bills originating from the

lower house. - can only originate from the lower house, but the senate may propose or concur with amendments (Sec.24) - initiative for filing revenue,tariff, or tax bills, bills authorizing inc. in public debt etc. must come from the House of Representatives on the theory that they are elected as they are from districts.They are expected to be more sensitive to the locality needs. - Senators : national perspective. - Senate: “concur amendments and propose amendments” may result in writing a distinct bill substantially different from that which originated from the lower house. Senate cannot be denied of that power for it will violate the co-equality of the Senate and HR. - Legislative Power vested in the Congress of the Philippines consisting of the Senate and the HR.

Enactment of budget and appropriations law Budget process:

1. Budget Preparation 2. Budget Authorization 3. Budget Execution 4. Budget Accountability

- after approval of the proposed budget by the DBM, the same shall be submitted to the Congress for evaluation and inclusion in the appropriations law. - General Appropriation bill is a special type of legislation contains limited specified sums of money dedicated to a specific purpose. - power of appropriation- how money shall be spent. -enactment of an appropriation bill shall follow the usual route of an ordinary bill. Restrictions in passage of budget or revenue bill Sec. 25 Article VI :

1. Budget Preparation by the President and submission to the Congress.

- Congress may not increase appropriations

- The form, content and manner of preparation of the budget shall be prescribed by law

- “power of the purse” belongs to the Congress

subject only to the veto of the President.

- President may propose the budget but final say is with the Congress.

- Power of appropriation carries with it the power to specify the project or activity that shall be funded.

- It can be as broad or as detailed as the Congress would want it.

2. Each provision must relate specifically to particular appropriation.

- prevents “inappropriate provisions” refers to unconstitutional provisions- President may validly veto.

- repeal or amendment, provisions preventing the president the right to reduce spending, rider provisions etc. shall not be included in the appropriation bill. e.g. fiscal autonomy(freedom from outside control) of LGUs

3. Procedure in approving appropriations -same procedures for approving appropriations in other departments.

4. Special appropriation bill to specify purpose

5. Restriction on transfer of appropriation -gen. rule: No law shall be passed

authorizing any transfer of appropriations.

- exception: Pres. Senate P., Speaker of HR, CJ, head of ConCom may by law be authorized to augment any item within their respective offices. -The appropriations law may contain provisions authorizing them to do so. -President or Speaker will give approval. 1. funds to be transferred are actually savings from expenditures 2. transfer is for the purpose of augmenting the items of expenditures to which transfer is to be made. - the express mention of officials prevents legislature from granting other officials to realize savings from their offices. 6. Discretionary Fund requirements - shall be disbursed for public purposes to be supported with appropriated vouchers and

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subject to such guidelines as may be prescribed by law. 7. Automatic Re-enactment of Budget - if congress failed to pass gen. appropriations bill for the ensuing fiscal year, the app.bill for the preceding year shall be deemed reenacted until the gen. app. Bill is passed by the Congress. 8. President’s veto power - President shall have the power to veto any item or items in the appropriation bill and the veto shall not affect the items he didn’t object. - he may veto any particular item and any “inappropriate” provisions in the bill. -“item” refers to details, distinct and several parts of the bill. specific appropriation of money and not some general provision of law. -President shall either disapprove the whole item or not at all. 9. No public funds to be spent except by law -“No money shall be paid out of the Treasury except in pursuance of an appropriation made by law. 10. NO public money or property for religious purposes. - except when such priest is assigned to the armed forces, or to any penal institution or gov’t orphanage or leprosarium. - provision does not apply to temporary use of public streets or places which are open to public. e.g. church given free use of water supply and printing of commemorative stamps. 11. Money for special purpose -special purpose=special fund, if project is already fulfilled the remaining balance shall be transferred to the general funds of the government. 12. Highest budgetary priority to education,directory. -Art. XIV Section 5(5) - provision is merely directory. - It does not tie the hands of the Congress to respond to the imperatives of the national interest and for the attainment of other state policies or objectives.

Rules and records of legislative proceedings

-Article VI: each house shall keep a journal of its proceedings and publish the same except such parts that may affect national security. - record of votes shall be recorded at the request of 1/5 of the members present.

Power to issue its rules of proceedings - cannot ignore constitutional restraints or violate fundamental rights - reasonable relation between between the mode or method of proceedings established by the rules and the result which is sought to be attained. -if rules of proceedings if violated restrictions in the enactment of law, it maybe declared unconstitutional for not being in accordance with internal rules. - if internal rules violate the constitution, fundamental rights and the same have no reasonable relation maybe declared unconstitutional. (see cases p. 25) - The power to make rules is not one which once exercised is exhausted. It is a continuous power, always subject to be exercised by the House and within the limitations suggested, absolute and beyond the challenge of any other body or tribunal. TEST:

1. that it did not ignore any constitutional restraint.

2. It did not violate any fundamental right

3. Its method had reasonable relationship with the result sought to be attained.

Unimpeachability of legislative journals

- Journal is regarded as conclusive with respect to matters that are required by the Constitution to be recorded therein. -With respect to other matters, in the absence of evidence to the contrary, the journals have been accorded conclusive effect. -“Imperative reasons of public policy require that the authenticity of laws should rest upon public memorials of the most permanent in character.” - they should be public since all are required to conform with them. They should also be permanent. - in case of conflict between enrolled bill and the legislative journals, the former should prevail except as to matters that the constitution requires to be entered in the journals such as the votes, objections of the President and the names of the members voting.

Enrolled bill

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- bill that is passed by congress, authenticated by the Speaker and Senate President and approved by the President. - deemed binding on the courts -“ enrolled bill doctrine” : the signing of the bill by the speaker and the Senate President and the certification of both secretaries of the house are conclusive of its due enactment. - enrolled bill carries on its face a solemn assurance by the legislative and executive departments of the government. -Courts cannot go behind the enrolled act as a respect to the co-equality of the other two branches. - amendment is the remedy by enacting curative legislation rather than judicial decree. - legislative journals and the enrolled bill are both conclusive upon the courts.

Withdrawal of authenticity, effect of. - Speaker and president may withdraw if there is discrepancy over the text of the bill as deliberated in the legislature and shown by the journal and that of the enrolled bill. - Withdrawal : nullifies the status of the enrolled bill. - if upon checking in the journal the approved amendments were not incorporated in the printed text ,the court can declare that the bill has not been duly enacted and did not accordingly become a law.

Summary of Rules Arroyo v. de Venecia Issue: Enactment of R.A. No. 8240 allegedly violated the internal rules of procedure of the house rather than constitutional requirements for the enactment of law Held: Courts could not inquire since there was no violation of constitutional requirements. Osmena v. Pendatun -Mere failure to conform to parliamentary usage will not invalidate the action taken by the deliberative body when the requisite number of members have agreed to a particular measure. U.S. v, Ballin, Joseph & Co. -The power to make rules is not one which once exercised is exhausted -The Constitution empowers each house to determine its rules of proceedings. It may not by rules ignore constitutional restraints or violate

fundamental rights, and there should be a reasonable relation between the mode or method of proceeding established by the rule and the result which is sought to be attained. D. Issuances, Rules and Ordinances

Ø Presidential issuances - issued by the President in the exercise of his ordinance power. -includes E.O., A.O., proclamations, memorandum orders, memorandum circulars and general or special orders. These issuance have the force of law. Executive order -provides for rules of a general or permanent character in implementation or execution Administrative Orders - relates to a particular aspect of governmental operations in pursuance of duty of admin. head Proclamations -fixing a date or declaring a status or condition of public moment or interest Memorandum Orders - matters of administrative detail or subordinate or temporary interest which concern only a particular office or officer Memorandum Circulars -matters relating to internal administration. General or special orders -commands of the President as the Commander-in chief of the AFP OPLE vs. Torres Issue: seeks to nullify A.O.308 “Adoption of a National Computerized Identification Reference System” Held: A.O. 308 is not a mere administrative order but a law. It goes beyond the power of the President to issue.

• it is usurpation of the power of congress to legislate

• it impermissibly intrudes on our citizenry’s protected zone of privacy.

1.21. Administrative Rules and regulations: can partake the nature of a statute.

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Rules- should be germane to objects and purposes of the law Regulations- should conform to standards that law prescribes *both should be for the purpose of carrying into effect the general provisions of the law In case of discrepancy: basic law prevails over rules and regulations (A statute is superior to an administrative regulation and the former cannot be repeals or amended by the latter.) rule making power of public administrative agency: delegated power, cannot be used to enlarge power beyond the intended scope -a rule/regulation which restricts/enlarges statute is invalid it is essential that a law: a.) be complete in itself b.) fix a standard (marks limits) adequate standards of rules and regulations: simplicity, dignity, public interest; public welfare; interests of the law and order; justice, equity, and substantial merit of the case; and adequate and efficient instruction In Cemco Holdings, Inc. v. National Life Insurance Co., GR No. 171815 (Aug.7, 2007): rules and regulations are defined (similar definition as above) -The rule-making power must be confined to details for regulation of the mode or proceedings to carry into effect the law as it has been enacted, and it cannot be extended to amend or expand the statutory requirements or to embrace matters not covered by the statute. Illustration I: Facts: Home Development Mutual Fund or PAG-IBIG FUND provides that waiver/suspension of coverage may be granted in favor of employer and/or employee group who have their own “provident/retirement and/or employee housing plans” Board of HDMF deleted the word OR from the law Held: by deleting the word “or”, the board exceeded its rule-making power by amending the law, rendering said rules null and void Illustration II Facts: Sec. 6, R.A. No. 6646 specifies a provision on election: “proclamation shall be suspended notwithstanding the fact that he received the winning number of votes in such election” Sec. 5, Rule 25 of Rules of Procedure changed the word “may” to “shall” in the said Rule Held: it was improper for COMELEC to have used “shall” instead of “may” in said Rule -being merely an implementing rule, the same must not override but instead remain consistent and in harmony with the law it seeks to apply and implement 1.22. Illustrative cases on validity of executive orders, rules and regulations. Case 1 Exec. Sec. v. Southwing Heavy Industries, Inc., GR No. 164171

Issue: Whether or not the EO banning the importation of used vehicles through Free Trade Zone is valid. Requisites of administrative issuance: a.) promulgation must be authorized by legislature b.) must be promulgated in accordance with prescribed procedure c.) must be within the scope of the authority given by the legislature d.) must be reasonable Sec 28 (2), Art VI of the Constitution- delegation of legislative powers to the President: “Congress may, by law, authorize the president to fix within specified limits, and subject to such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage and wharfage sues and other duties or imposts within the framework of the national development program of the government. “ Relevant statutes to execute this provision are:

a.) Tariff and Customs Code – authorizes the president in the interest of national economy/security, to prohibit importation of any commodity

b.) Executive Order No. 226 (Omnibus Investment Code of the Phil.) – empowers the president to approve or reject the prohibition on the importation of any law equipment or raw materials

c.) RA No. 8800 (Safeguard Measure Act) designated secretaries of DTI and DAR, as implementing authorities of safeguard measures including the modification or imposition of any quantitative restriction on import of products

-there are explicit constitutional statutory permission authorizing the President to ban or regulate importation of articles and commodities into the country held: the subject matter of the law authorizing the President to regulate or forbid importation of used motor vehicles, is the domestic industry. EO 156 exceeded the scope of its application by extending the prohibition on the importation of used cars to Freeport. - the inclusion of the said zone is an invalid modification of RA 7227. When the application of administrative issuance modifies existing laws or exceeds the intended scope, the issuance becomes void, not only for being ultra vires, but also for being unreasonable.

Case 2: DAR vs. Sutton (GR No. 162070) Issue: Whether DAR A.O. No. 9 fixing the retention limits of land devoted to livestock farming is constitutional.

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Held. DAR A.O. No. 9 is unconstitutional. The fundamental rule in administrative law is that administrative rules and regulations must be issued by authority of a law and must not contravene the provisions of the Constitution. A.O No. 9 is invalid as it contravenes the Constitution. DAR has no power to regulate livestock farms which have been exempted by the Constitution from the coverage of Agrarian reform. It has exceeded its power in issuing the assailed A.O. Case 3: Maxima Realty Management and Dev. Corp. v. Parkway Real Estate Dev. Corp. (GR No. 136492) Issue: Whether an administrative rule prescribing a period of 30 days to appeal a decision to the Office of President prevails over a presidential decree providing that appeal from such agency to the office of the president is 15 days Ruling: The Presidential Decree, which is the law, prevails and the administrative rule is void --procedure no longer holds true for being in conflict with the provisions of aforesaid presidential decrees. --administrative rules derive their validity from the statute that they intended to implement --any rule which is not consistent with statue is null and void 1.23. Administrative rule and interpretation distinguished. Administrative rule- rules promulgated pursuant to law and are binding on courts Administrative interpretation- is merely advisory; courts determine what law means 1.24. Supreme Court rule-making power: power to promulgate rules concerning protection, enforcement of Constitutional rights, pleading, practice and procedure in all courts, admission to law, IBP and legal assistance to underprivileged. -provided in Sec.5(5), Art VIII and complemented with Sec 30, Art VI: “No law shall be passed increasing the appellate jurisdiction of the SC as provided in this Constitution w/o its advice and concurrence” -includes the power to repeal procedural laws legislature: may enact substantive and procedural rules Supreme Court: does not have the power to promulgate substantive rules Procedural – judicial process for enforcing rights and duties recognized by substantive law, justly administering remedy Substantive – if it takes away vested right or if the rule creates right such as right to appeal

1.25. Legislative power of local government units: power of legislative bodies to enact ordinances (barangay, municipal, city and provincial) Lagcao v. Labra, GR 155746: For an ordinance to be valid, it must be: a.) within the corporate powers of the city/ municipality to enact b.) be passed according to procedure prescribed by law c.) must be in accordance with well-established basic principles of a substantive nature Principles require that an ordinance: -Must not contravene the Constitution or any statute -Must not be unfair or oppressive -Must not be partial/discriminatory -Must not prohibit but may regulate trade -Must be general and consistent with public policy -Must not be unreasonable 1.26. Barangay Ordinance: subject to review by sangguniang bayan (SB) /panlungsod to determine consistency with municipal/city ordinance. Sangguniang barangay (SB): smallest legislative body; may pass an ordinance affecting a brgy by majority vote of members SB/SP Will take action 30 days from submission or else, it will be deemed approved If found inconsistent with municipal/city ordinance, its effectivity is suspended 1.27. Municipal Ordinance. Sangguniang Bayan has the power to enact and majority of members should vote for the passage of any ordinance Municipal mayor will take action 10 days after receipt and should return either with approval or veto; Likewise, it shall be deemed approved 2/3 vote of SB will veto the mayor, and ordinance shall be submitted to sangguniang panlalawigan (SP) Sangguniang Panlalawigan within 30 days shall invalidate in whole/in part; likewise, it shall be deemed final 1.28. City Ordinance. Sangguniang panlungsod has the power to pass city ordinance and majority of members should vote for the passage of any ordinance City mayor will take action 10 days after receipt and should return either with approval or veto; Likewise, it shall be deemed approved 2/3 vote of sangguniang panlugsod will veto the mayor, and ordinance shall be submitted to sangguniang panlalawigan (SP) SP within 30 days shall take action; otherwise, it shall be deemed final 1.29. Provincial Ordinance. Sangguniang panlalawigan – legislative body of a province that enacts ordinances affecting the province through majority vote

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Governor, within 15 days from receipt shall approve or veto; otherwise, it will be deemed approved Vetoed ordinance may be repassed by SP by 2/3 vote of all members E. VALIDITY OF STATUTE 1.30. Presumption of Constitutionality -every statute is presumed valid as respect to the integrity of legislature and chief executive -to declare a law unconstitutional, it must be clear showing that what the fundamental law condemns or prohibits, the statute allows it to be done -there must be a clear and unequivocal breach of the Constitution, not a doubtful and argumentative implication -Supreme Court has the final authority to declare a law unconstitutional -every Court is charged with the duty of purposeful hesitation before declaring the law unconstitutional on the theory that a the measure was first carefully studied by the executive and legislative dept. and determined by them to be in accord with fundamental law before it was finally approved 1.31. Requisites for exercise of judicial power Requisites, as a rule, that should be present: a.) existence of an appropriate case b.) an interest personal and substantial by the party raising the constitutional question c.) plea that the function be exercised at the earliest opportunity d.) necessity that the constitutional question be passed upon in order to decide a case 1.32. Appropriate Case: should be justifiable controversy for it to be deemed a bona fide case -controversy is justifiable if it refers to a matter which is appropriate for court review; and is susceptible of being decided on grounds recognized by law -political questions are issues dependent upon the wisdom and not legality of a particular act or measure being assailed; thus, courts hesitate to rule on them 1.33. Standing to Sue. Legal Standing/locus standi: personal and substantial interest in the case such that a party has sustained or will sustain direct injury as a result of governmental act Interest – material interest, an interest in issue affected by the decree -without such direct injury, the petition challenging the validity of a law states no cause of action and should be dismissed Taxpayer’s suit: taxpayer has standing to raise constitutional issue when it is established that public funds have been disbursed in alleged contravention of the law or the Constitution -to restrain public officials from wasting public funds -not every person/taxpayer can question the constitutionality of a law. A person must show that he has sustained or is immediate danger f

sustaining some direct injury as result of enforcement -whether or not the court will entertain the suit is a matter of judicial discretion -member of the Senate or House of representatives has the legal standing to question the validity of presidential veto -the Supreme Court may take cognizance of a suit which does not satisfy the requirement of legal standing -when the issue is of transcendental importance to the people, the Court may brush aside technicalities of procedure -constitutional issues deserve the attention of the Court in view of their seriousness, novelty and weight as precedents Tatad v. Secretary of Department of Energy: “The courts, as guardians of the constitution, have the inherent authority to determine whether a statue enacted by the legislature transcends the limit imposed by the fundamental law.” 1.34. When to raise constitutionality. -constitutional questions will only be entertained by courts if they are specifically raised, insisted upon and adequately argued -when an act of the President is seriously alleged or have infringed the Constitution and the law, settling the dispute becomes the duty and responsibility of the courts 1.35. Necessity of deciding constitutionality. -the court will not pass upon the validity of a statute if it can decide the case on some other grounds -if the constitutional question is unavoidable, the court should confront the question and decide the case on the merits 1.36. Summary of Essential Requisites for Judicial Review Francisco vs. HRET, GR No. 160261 summarized essential requisites for judicial review: The courts power of judicial review is subject to several limitations namely:

a.) actual case or controversy calling for the exercise of judicial power

b.) person challenging the act must have “standing” the challenge

c.) the question of constitutionality must be raised at the earliest possible opportunity

d.) issue of constitutionality must be the very list mota of the case

lis mota – maxim of adjudication that an issue assailing the constitutionality of a governmental act should be avoided whenever possible

Standing is a special concern in Consti law because some case suits are brought upon not by parties who have been personally injured by the operation of the law but by concerned

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citizens, taxpayers or voters who sue for public interest

when suing as a: 1.) citizen, the interest should be direct and personal; must show that the law or government act is invalid and that he is in imminent danger of sustaining direct injury as result of enforcement -must appeal that he has been/about to be denied right or privilege; assertion of public right 2.) taxpayer, should claim that public funds are illegally disbursed, deflected to any improper purpose and wastage of public funds through enforcement of invalid law 3.) legislator, should question the validity of any official action which he claims infringes his prerogatives as legislator 4.) class suits (filed in behalf of all citizens), person intervening must be sufficiently be numerous to fully protect the interests of all concerned

rule on real-party-interest (civil procedure): “whether he is the party who would benefited/injured by the judgment” or “party entitled to the avails of the suit” rule on standing (constitutional underpinnings): require a partial reconsideration of the merits, broader policy concerns relating to the proper role of the judiciary in certain areas determinants of transcendental importance of an issue:

1.) the character of the funds/other assets involved in the case

2.) presence of a clear case of disregard of a constitutional or statutory prohibition by the public respondent agency or instrumentality of the government

3.) lack of any party with more direct and specific interest in raising the questions being raised

In motions of intervention, Rule 19, Sec. 2 of the Rules of Court requires an intervenor to possess a legal interest in the matter in litigation In Francisco v. HRET: -petitioner, invoked their rights as citizens to intervene alleging that “they will suffer if this insidious scheme of minority members of HRET is successful.” -Jaime Soriano’s motion to intervene is denied because of failure to meet standing requirement to bringing taxpayer suit -He also failed to allege that the act of petitioners will result to illegal disbursement of public funds Ripeness and prematurity In Tan v. Macapagal, Chief Justice Fernando held that a case is ripe for adjudication if “it is a prerequisite that something had by then

been accomplished or performed by either branch before a court may come into the picture” Senate Pres. Jovito Salonga opines that petitions are premature if there is no urgent need for Court to render decision and that all remedies in the House and Senate should be first exhausted Justiciability In Tanada v. Cuenco, CJ Roverto Concepcion defined “political question” as “questions under the Consti, which are to be decided by the people in their sovereign capacity, or in regard to which full discretionary authority has been delegated to the legislature/executive branch of the government”

-‐ political question is concerned with issues dependent upon wisdom, not legality, of a particular measure

-‐ judicial power is not only power but is also a duty which cannot be abdicated by the mere specter of political question doctrine

-‐ political question doctrine neither interposes an obstacle to judicial determination of rival claims

-‐ allocation of constitutional boundaries is a task that the court must perform under the Constitution

-‐ CJ Concepcion said that there are two species of political question:

a.) truly political questions: beyond judicial review because of the reason for respect of the separation of powers

b.) not truly political questions

-‐ standards of determining political questions

a.) textually demonstrable constitutional commitment of the issue to a coordinate political department

b.) lack of judicially discoverable and manageable standards of resolving it

c.) impossibility of deciding without an initial policy determination of a kind clearly for non-judicial discretion

1.37. Test of Constitutionality -Test of constitutionality of a statute is what the Consti provides in relation to what can or may be done under the statute, and not by what it

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has been done under it. (Prospective, not retrospective) • A statute may be declared unconstitutional

when: 1. It allows something to be done which

the fundamental law condemns or prohibits

2. It attempts to validate a course of conduct the effect of which the Consti specifically forbids

3. It is vague - lack comprehensible standards that men of common intelligence must necessarily guess at its meaning and differ in its application

a. It violate due process b. Leaves law enforcers unbridles

discretion in carrying out the provisions

• Emergency Laws – designed specifically to

meet certain contingencies. They are deemed constitutional at the time of enactment and unconstitutional only after the emergency has passed. It does not violate the Constitution but because the change in circumstances and conditions makes the continued performance of the statute violative to the Constitution.

• The tests of validity with respect to

Ordinances are: 1. It must not contravene the Consti or any

statute 2. It must not be unfair or oppressive 3. It must not be partial or discriminatory 4. It must not prohibit but may regulate

trade 5. It must be general and consistent with

public policy 6. It must not be unreasonable

1.38 Effects of Unconstitutionality -The general rule is that an unconstitutional act is not a law; it confers no rights; it imposes no duties; it affords no protection; it creates no office; it is in legal contemplation, inoperative as though it has never been passed. -Prior to the declaration of nullity the challenged statute must have been in force and had to be complied with, until the court in an appropriate case declares its invalidity. -Its operative act before a declaration of nullity must be recognized -The past cannot be changed by a new judicial declaration Question of rights claimed to have become vested, of statues, of prior determinations deemed to have finality and acted accordingly, of public policy in the light if the nature of both the statute and its previous applications, demand examination. These questions are among the most difficult of those which have engaged the attention of courts.

Two views on the effects of a declaration of the unconstitutionality of a law

1. Orthodox view – the unconstitutional law id stricken from the statute books and considered never to have existed at all. TOTAL NULLITY. (Civil code of the Philippines Art. 7 “When the courts declare a law to be inconsistent with the constitution, the latter should be void and the latter shall govern)

2. Modern view – less stringent. The court in passing upon the question of constitutionality does not annul or repeal the statute if it finds it in conflict with the Consti. It simply refuses to recognize it. (does not strike the statute from the statute books; it does not repeal, supersede, revoke, or annul the statute)

-A situation described as fait accompli (something already done and unalterable) may no longer be open for further inquiry, let alone to be unsettled by a subsequent declaration of nullity of a governing statute. -The above referring to the interim effects of an unconstitutional law prior its declaration of unconstitutionality. -Thus, the election of persons to aboard of directors held pursuant to a law be fore the law is declared unconstitutional is presumed valid until its declaration of nullity. 1.39. Invalidity due to changes of conditions -The general rule as to the effects of unconstitutionality of a statute is not applicable to statute that is declared invalid because of the change circumstances affecting its validity. -A statute of this type belongs to the class of emergency laws. Emergency Laws – deemed valid at the time of its enactment as an exercise of police power but becomes invalid only because of the change in conditions which makes its continued operation violative of the Constitution. The declaration of its nullity should affect only the parties involved in the case and its effects applied prospectively. 1.40. Partial invalidity -The general rule is that where part of a statute is void as repugnant to the Constitution, while other part is valid, the valid portion, if separable from the invalid, may stand and be enforced. -except when the parts of a statute so mutually dependent and connected, as conditions, considerations, inducements, or compensations for each other, as to warrant belief that the legislature intended them as a whole, the nullity of one part will vitiate the rest. If some parts are unconstitutional, all other provisions thus

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dependent, conditional, or connected must fall with them. Separability clause – presence of this in the statute creates the presumption that the legislature intended separability, rather than complete nullity, of the statute. To justify the result, valid portion must be so far independent of the invalid portion that it is fair to presume that the legislature would have enacted it by itself if it had supposed that it could not constitutionally enact the other. Example: R.A. No. 8180 Section 23 contains “if for any reason, any section or provision of this Act is declared unconstitutional or invalid, such parts not affected thereby shall remain in full force and effect.” Tatad v. Secretary of Department of Energy -exeption in the general rule on the effects of partial invalidity. R.A. 8180 aka “An Act Deregulating the Downstream Oil Industry and For Other Purposes” (UNCONSTITUTIONAL) Issue: Whether or not the nullity of 3 provisions (provision on tariff differential, inventory, and predatory pricing) affected the whole. -And, whether or not these offending provisions can be individually struck down without invalidating the whole R.A. No. 8180. Held: Yes. The nullity of the 3 provisions affected the whole. -And, the offending provisions of R.A. No.8180 so infirmed it essence that the entire law has to be struck down. -The provision on 1. tariff differential 2. inventory 3. and predatory pricing inhibit fair competition, encourage monopolistic power and interfere with the free interaction of market forces. -Before deregulation, Petron, Shell and Caltex had no real competitors but did not have a free run of the market because of governmental controls. After deregulation, They remain unthreatened by real competition yet are no longer subject to the control of the government.

• It is a fundamental principle in statutory construction that the statute may be constitutional in one part and unconstitutional in another and that if the invalid part is severable from the rest, the portion which is constitutional may stand while that which is unconstitutional is stricken out and rejected.

F. EFFECT AND OPERATION 1.41. When the law take effect. The general rules where the law is silent as to its effectivity or it will take effect immediately or upon its approval.. Article 2 of the Civil Code: “Laws shall take effect after 15 days following the completion of their publication in the Official Gazette, unless it is otherwise provided Section 18, Chapter 5, Book 1 of the 1987 Administrative Code: Laws shall take effect after 15 days following the completion of their publication in the Official Gazette or in a newspaper of general circulation, unless it is otherwise provided. -The Supreme Court held that all laws or statutes, including those of local publication and private laws, shall be published as a condition for their effectivity. A law made effective by the legislature upon approval or any other date without previous publication will violate the due process clause of the constitution which requires its publication before it becomes binding. (Tanada v. Tuvera) -The legislature may by law,or by particular statute itself, provide that law shall take effect on a particular date or after a certain period from its publication in the Official Gazette or in newspaper of general circulation, in which case it shall take effect as thus provided. General Principle of the clause in publication that cannot be dispensed with by the legislature: -before the public is bound by the provision of the law, they must be published and the people officially and especially informed thereof, which is a requirement of due process of law. Phil. Veterans Bank Union v. Vega: “unless it is otherwise provided” means that the Congress may provide in the law that it shall take effect upon immediately after its approval. Tañada v. Tuvera: a publication is a “must” before a statute becomes effective (conflicting cases) 1.42. When Presidential issuances, rules and regulations take effect. -The President’s ordinance power includes authority to issue: 1. Executive Orders 2. Administrative Orders 3. Proclamations 4. Memorandum Orders 5. Memorandum Circulars 6. General or Special Orders

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-The requirement for publication as a condition for the effectivity of the statutes (as stated above) applies to the Presidential Issuances, which means that they should be published in the Official Gazette or in a Newspaper of general circulation before they can become effective, except those which are mere interpretative or internal in nature not concerning the public. 2 types of rules and regulations issued by the administrative or executive officers:

1. Those whose purpose is to implement existing law in pursuant to a valid delegation or to fill in the details of the statute

2. Interpretative and internal in nature not concerning the public (concerning the personnel of the admin agency, not the public)(need not to be published)

-The first type of Rules and regulations, whether they are penal or non-penal, take effect after 15 days following their PUBLICATION in the Official Gazette or in a newspaper of general circulation, unless the statute which authorizes their issuance provides different date of effectivity after such publications. - Such rules and regulations must comply with the requirements of filing as provided in the 1987 Administrative Code:

1. Every agency shall file with the UP Law Center 3 certified copies of every rule adopted by it.

a. Rules in force on the date of the effectivity of the Admin Code which are not filed w/in 3 mos. From that date shall not therafter be the basis of sanction against any party or persons

b. Code also provides that laws not inconsistent with this book shall become effective 15 days from the date of filing as above provided unless a different date is fixed by law or specified in the rule, in cases of imminent danger to public.

U.P. Law Center – central office, for filing of requirements, where interested persons can readily secure copies of such rules and regulation or check on their existence -The publication and filing requirements are both indispensible in the effectivity of the rules and regulations

Except: when law authorizing the rules and regulations dispense with the filing of requirement. - In w/c case, publication, which cannot be dispensed w/o violating the due process clause, will be sufficient to make the Rules and Regulations effective. Example: DMB-CCC No. 10 (disallowed car plans) The Court ruled that to be effective, this circular should be first be published in the Official Gazette bec. It was not just an interpretation or internal regulation, but one w/c deprived gov’t officials of their allowances and compensation. Subsequent publication did not cure the fatal defect of lack of publication, nor did it retroact to the time that the circular was first issued; it could not apply prospectively. 1.43. When Local ordinance takes effect.

a. Unless otherwise stated in the ordinance approving the local development plan and public investment program, the same shall take effect after 10 days from the date of a copy is posted in the bullet board in the entrance of the provincial capitol or cit, municipal, or barangay hall, as the case may be, and in at least 2 other conspicuous places in the local government unit concerned

b. The secretary of the sanggunian concerned shall post the above mentioned not later than 5 days after approval therof. (Language: Filipino/English and dialect understood by the majority of the people)

c. The gist of all ordinances with penal sanctions shall be published in a newspaper of general circulation w/in the province. In the absence of general circulation, posting of such ordinaces shall be made in all municipalities and cities of province where the sangunian of origin is situated.

d. In highly urbanized and independent cities, the main feature of the ordinace or resolution shall be posted and published once in a local newspaper of general circulation within the city.

-In the absence of a local newspaper, the above mentioned shall be published in any newspaper of general circulation. -highly urbanized city – has population of not less than 200,000 as certified by Nat’l Census and Statistics Office with the latest annual income of at least P50M

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based on the 1991 constant prices(certified by the city treasurer)

1.44. Statutes continue in force until repealed -In terms of duration and effect, statutes may be:

• Permanent, or • Indefinite/temporary

Temporary statutes – in force only for a limited period, terminates upon the expiration of the term therein stated or upon occurrence of certain events. *No repealing statute is necessary to bring temporary law to end. Permanent statutes – majority of statutes. It continues in force until changed or repealed by the legislature; cannot be changed by a mere change in sovereignty 1.45. Territorial and Personal effect of statutes -The Philippines being independent and sovereign has its authority exercised over its entire dominion. -no portion beyond its power -w/in its limits, decrees are supreme and command paramount - everyone, to whom it applies, must submit to the laws it governs 1.46. Manner of computing time

• Years = 365 days each (regardless of a leap year)

• Months = 30 days each • Days = 24 hours each • Nights = from sunset to sunrise

*If months are designated by their name, they shall be computed by the number of days they respectively have. *In computing a period, the first day shall be excluded and the last day included. *When “week” is used without reference to the calendar, it means a period of 7 consecutive days w/o regard to the day of the week from where it begins -Civil Code adopts 365-day year and 30-day month not calendar year or civil month. *Where statute requires doing an act within a specified number of days from notice, it means calendar days not working days. Ex. 1 year of October 4, 1946 is on October 4, 1947. (include-the-first and exclude-the-last day rule) *if the last day falls on a Sunday or a holiday, the act can still be done the following day

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Except: In prescription of a felony bec. the following day after Sunday or legal holiday, the offence has by then prescribed Chapter II: Construction and Interpretation A. Nature and Purpose 2.01. Construction defined Construction – art of process of discovering and expounding the meaning and intention of the authors of the law, where that intention is rendered doubtful by reason of the ambiguity in its language or the fact that the given case is not explicitly provided for in the law. -‐ Warranted conclusion beyond the direct

expression of the text (in spirit, which are not in the letter of the text)

-‐ Construction involves the exercise of choice by the judiciary

2.02. Construction and interpretation distinguished Interpretation - the art of finding the meaning and sense of any form of words Construction – process of drawing warranted conclusions not always included in the direct expressions, or determining the application of words to facts in litigation Litigation – existence of lawsuit *however, in practice and common usage, the two terms are understood to have the same signification (synonymous)

2.03. Rules of construction, generally. Rules of statutory construction – tool used to ascertain legislative intent. Not rules of law but mere axioms of experience. Help the court resolve bad cases (ambiguous and deficient cases therefore hard). Has no binding effects on courts nor they are controlling in the interpretation of laws. As instruments of construction, they may be only used to clarify, not to defeat, legislative intent. *The legislature is presumed to know the rules of statutory construction thus enacts a law w/ the end in view that it will, in case of doubt, be construed . *Legislature sometimes adopt rules of statutory construction as part of the provisions of a statute 2.04. Purpose or object of construction. -The cardinal rule in the interpretation of laws is to ascertain, and give effect to, the intent of the law. The office of statutory interpretation:

-‐ Determine legislative intent -‐ The true object of all interpretations to

ascertain the meaning and will of the law-making body

-‐ ‘The purpose of all rules or maxims’ in interpretation is ‘to discover the true intention of the law.’ They are only valuable if they subserve this purpose.

2.05. Legislative intent, generally. -The legislative intent is the vital part and essence of the law -The intent of the legislator is the law, and the key to, and the controlling factor in, its construction and interpretation. -Intent is the spirit that gives life to legislative enactment. -Intent prevails over the letter of the statute Intent: purpose or meaning of the law? Intent depends more on the PURPOSE and object of the law *purpose, meaning, intent, and spirit are oftentime interchangeably used by the courts (not entirely synonymous) 2.06. Legislative purpose -Legislative purpose is the reason why a particular statute was enacted by the legislature. -Legislature enacted statutes to achieve an end which should not be defeated on the manner it shall be construed/interpreted. Ex.

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What the legislature intended to accomplish/achieve? What is the object? Is it to prevent a mischief? Is it to create new rights? Is it to eliminate defects in existing law? Is it to implement provisions from Constitution? What is in its mind? 2.07 Legislative meaning - Legislative meaning is what the law, by its language, means. Ex. What it comprehends? What it covers or embraces? What its limits or confines are? *if the language of the law reflects what the legislature intended, Legislative meaning and purpose is synonymous. 2.08 Graphic Illustration R.A. No. 809 (Sugar Act of 1952) Section 1 “in the absence of written milling agreements between the majority of the planters and the millers of sugarcane in any milling district in the Phil., the unrefined sugar produced in that district x x x shall be divided between them.” Section 9 the proceeds of any increase in participation granted the planters a proportion of 40% and the laborer 60% Issue: Whether or not the R.A. No. 809 apply even if the majority of the sugarcane planters have written milling agreement with the miller or central stipulating a sharing proportion different from the one provided in the Act. (what is the legislative intent?) -Whether or not the act is applicable where there is a written milling agreement. Held: The act is operative irrespective of whether there exists a milling agreement between the central and the sugar planters, as long as labourer receive a share, sugar is produced, and planters receive an increase in participation. Purpose of the Legislature: Grant planters’ laborer a share in the sugar produce. Literal rendition of “in the absence of written milling agreement”: The act is not applicable when written milling agreement exists. *the literal import, if given effect, will defeat the purpose of the Act.

2.09. Matters inquired into in construing a statute. -To ascertain the intention or meaning of a statute is not enough. - Intention and meaning should be expressed in such a way as to give it legal effect and validity (language used must sufficiently express the meaning) 2 elements of a legal act 1. internal (intention) 2. external (expression) *The legal act originated from intention and perfected by expression. 2.10. Where legislative intent is ascertained -The primary source of the Legislative intent is the statute itself, as a whole, not from an isolated part of the provision thereof. Where the words used in the statute are not ambiguous, the Legislative intent must be determined from the language employed. Where the words used in the statute are ambiguous, the Court may look beyond the statute, such as legislative history, to ascertain what was in the legislative mind at the time the statute was enacted. *When ascertaining the legislative intent fail, the court may look into the effect of law. Interpretation, then, becomes Judicial legislation. (Rule of Court construing the Law) GARCIA v. Social Security System G.R. No. 170735, December 17, 2007 Issue: Whether or not the only surviving director of a corporation is liable for the whole collected and unremitted SSS contribution to the SSS, with penalties. Held: The only surviving director of said corporation is liable, by applying the pertinent (relevant) provisions of the SSS Law and various rules of Statutory construction. As a covered employer under the SSS Law, it is the obligation of “Impact Corporation” to deduct and remit the premium contributions to the SSS together with the employer’s shares in the contributions of the employees (Sections 18,19,22 of the Social Security Law) Section 22. Remittance of Contributions -The contributions shall be remitted to the SSS w/in the first 10 day of the calendar months following the month for w/c they are applicable. -Every employer is required to deduct and remit such contributions, shall be liable for their

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payment, and if any contribution is not paid to the SSS herein prescribed - Employer’s liability is to pay the (unremitted) contribution and 3% per month from the date the contribution falls due until paid. *It is a cardinal rule in statutory construction that in interpreting the meaning of the law, careful review of the WHOLE law must be made Issue: Whether or not the employer is liable both for the unpaid SSS contributions AND penalties. Held: According to section 22 of Social Security Law, he is liable for both the unpaid contributions and penalties. Nowhere in the provision can it be inferred that the person liable are absolved from paying the unremitted premium contributions. *The court cannot be made to accept an interpretation that would defeat the intent of the law and its legislators. Section 28. The act penalized by this Act be committed by an

1. Association 2. Partnership 3. Corporation, or 4. Any other institution

its 1. Managing head 2. Directors, or 3. Partners

shall be liable to the penalties provided in the act. Issue: Whether or not one must be the “managing head,” “managing director,” and “managing partner” to be liable to the offense Held: Section 28 of the Social Security law imposes penalty on

1. The managing head; 2. Directors; or 3. Partners, for offenses committed by a

juridical person. The law is clear that the director or partner need not to be “managing” to be liable. Issue: Whether or not the director, trustees or officers who participate in unlawful acts are guilty of gross negligence and bad faith Whether or not she is only liable to the extent of her subscription. Held: The directors, trustees or officers are liable when:

1. When they vote or assent to an unlawful acts of the corp.

2. Act in bad faith/ with gross negligence in directing the corporate affairs

3. Guilty of conflict of interest to the prejudice of the corporation, its stockholders or members, and other persons.

4. When made personally liable for his corporate actions.

Under the 4th situation, the petitioner was made civilly liable by Section 8 of the Social Security Law. *Criminal actions for the violation of the SS Law are also provided in the RPC * Although a corporation has a separate juridical personality separate and distinct to the person comprising it, it is but a legal fiction introduced to subserve the ends of justice. It cannot be extended beyond reason and policy otherwise, it will be disregarded by the law. B. Power to Construe 2.11. Construction is a judicial function -duty and power of judiciary to interpret or construe a statute or the Constitution

-executive and legislative may interpret the law, but the court has the final word as to what the law means

-cases being moot and academic: purpose has become stale or where no practical relief can be granted or which can have no practical effect; dismiss the case

-court interprets or applies the law based on facts and the law involved

-laws are interpreted always in the context of the peculiar factual situation of each case

-circumstances of time, place, event, person, and particularly attendant circumstances and actions before, during and after the operative fact should all be taken in their totality so that justice can be rationally and fairly dispensed

2.12 Legislature cannot overrule judicial construction

-legislature has no power to overrule the interpretation or construction of a statute or the Constitution by the Supreme Court

-legislature may indicate its construction of a statute in the form of a resolution or declaratory act but cannot preclude the courts from giving the statute a different interpretation

-Perfecto v. Meer:

Facts

-court construe Article VIII, Sec. 9 of 1935 constitution and ruled that the collection of income tax from salaries of judicial officers is a diminution of their salaries in violation of the constitutional provision

-legislature enacted RA No. 590: no salary whenever received by any public officer of the Republic of the Philippines shall be considered as exempt from the income tax, payment of which is hereby declared not to

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be a diminution of his compensation fixed by the Constitution

Issue: Whether or not the enacted law of the Legislature is valid and constitutional

Held:

-legislature cannot override its interpretation of the constitutional provision

-before the court can determine whether a law is constitutional or not, it will have to interpret and ascertain the meaning not only of said law, but also of the pertinent portion of the Constitution in order to decide whether there is a conflict between the two

- Section 13 of RA No. 590 is considered as an interpretation of Section 9, Article VIII of the constitution

-if the legislature then may declare what a law means this would surely cause confusion

-a final court determination of a case based on a judicial interpretation of the law or of the Constitution may be undermined or even annulled by a subsequent and different interpretation of the law or of the Constitution by the Legislative

-this is violative of the fundamental principles of our constitutional system of government, particularly those governing the separation of powers

2.13 When judicial interpretation may be set aside

-Supreme Court itself may change or overrule its previous construction

-the framers of the fundamental law may modify or even nullify a judicial interpretation of a particular provision thereof

-Edencia v. David: regarding the exemption on income tax in Section 9, Article VIII of the 1935 Constitution

-Article XV, Section 6 of the 1973 constitution: “No salary or any form of emolument of any public officer or employee, including constitutional officers, shall be exempt from payment of income tax”

-legislature cannot by law or resolution, modify or annul the judicial construction without modifying or repealing the very statute which has been the subject of construction

2.14 When court may construe statute

-Laguage: is one of the distinctive qualities of man, especially of modern thinking man; ability to articulate; brings forth the creation and evolution of culture, literature, science and law

-unceasing effort is to say what is meant and to mean what is said

-rarely free from ambiguity as to be incapable of being used in more than one sense

-doubt is created as to what the statute means or as to whether it applies to a given situation

-Construction: means by which the court clarifies the doubt to arrive at the true intent of the law

2.15 Condition sine qua non before courts can construe statutes; ambiguity defined

-sine qua non: there is doubt or ambiguity in the language of the statute

-where there is no ambiguity in the words of a statute, there is no room for construction

-Ambiguity: condition of admitting two or more meanings, of being understood in more than one way or of referring to two or more things at the same time

-statute is ambiguous if it is susceptible of more than one interpretation; court should construe the statute and give it a meaning according to its intent

-Garcia v. Social Security Commission

-interpretation is necessary in instances where a literal interpretation would be either impossible or absurd or would lead to injustice

-petitioner interprets Section 28 (f) of the Social Security Law as applicable only to penalties and not to the liability of the employer for the unremitted premium contributions

-Court cannot be made to accept an interpretation that would defeat the intent of the law and its legislature

-correct interpretation should be consistent with the legislative intent

2. 16 Court may construe where statute is clear

-first and fundamental duty of the court is to apply the law; construction or interpretation comes only after it has been demonstrated that application is impossible or inadequate without it

-court may not construe a statute that is clear and free from doubt

-where the law is clear and unambiguous, it must be taken to mean exactly what it says and the court has no choice but to see to it that its mandate is obeyed; even if the law may be harsh

-a meaning does not appear nor is intended or reflected in the very language of the statute cannot be placed therein by construction

-Lapid v. Court of Appeals:

Facts:

-Sec. 27 of RA No 6770: Any order, directive or decision imposing the penalty of public

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censure or reprimand, suspension of not more than one month’s salary shall be final and unappeable

-claimed to be similar with Sec. 12 of Rule 43 of the 1997 Rules of Procedure, Sec. 68 of the local government code, and Book V, Title I, Subtitle A, Chapter 6, Section 47 par. (4) of the Administrative Code

Issue: whether a decision of the Ombudsman in an administrative charge finding the respondent guilty and imposing the penalty of one year without pay is immediately executor and is not stayed by a timely appeal by the court of appeals

Held:

-Supreme Court ruled that since the decision imposed a suspension of one year without pay, the same is not immediately executor and the timely appeal interposed therefrom stayed its becoming executory

-no basis in law for the proposition that provisions of the Administrative Code of 1987 and the Local Government Code on execution pending review should be applied suppletorily to the provisions of the Ombudsman Act

-considering that petitioner was charged under the Ombudsman Act, it is this law alone which should govern the case

-Land Bank v. Court of Appeals

-construed the word “deposit” to include “trust accounts”

-Court held that Section 16(e) of Republic Act No. 6657 was very specific in limiting the type of deposit to be made as compensation for the rejecting landowners, that is, in ‘cash’ or in ‘LBP bonds’

-when the law speaks in clear and categorical language there is no reason for interpretation or construction, but only for application

-Libanan v. HRET

-issue is whether ballots not signed at the back by the chairman of the board of election inspectors are spurious, since it violated Sec. 24 of RA No. 7166: Signature of Chairman at the back of every Ballot

-court ruled that there is really nothing in the above law to the effect that a ballot which is not so authenticated shall thereby be deemed spurious

-courts may not enlarge the scope of a statute and embrace situations neither provided nor intended by the lawmakers

2.17 Verbis legis or plain meaning rule

-plain meaning rule/ verbis legis: when the statute is clear, plain and free from ambiguity, it must be given its literal meaning and applied without interpretation

-index animi sermo est: speech is the index of intention; words employed by the legislature in a statute correctly express its intention or will and preclude the court from construing it differently

-Republic v. Lacap

-verba legis non est recedendum: from the words of a statute there should be no departure

-wordings of RA No. 4566 are clear; respondent should be paid for the projects he completed

-Article 22 of the Civil Code: nemo ex alterius incommode debet lecupletari (no man ought to be made rich out of another’s injury)

-National Food Authority v. Masada Security Agency Inc.

Facts:

-R.A. 6727 (Wage Rationalization Act): declared it a policy of the state to rationalize the fixing of minimum wages; to guarantee the rights of labor to its just share in the fruits of labor; to enhance employment generation; to allow business and industry reasonable returns and investment

-creation of National Wages and Productivity Commission and Regional Tripartite Wages and Productivity Boards

-payment of the increases in the wage rate is ordinarily shouldered by the employer

-NFA claims that its additional liability under the aforecited provision is limited only to the payment of the increment in the statutory minimum wage rate

Issue: whether or not the liability of principals in service contracts under Section 6 of RA 6727 and the wage orders issued by the Regional Tripartite Wages and Productivity Board is limited only to the increment in the minimum wage

Held:

-the word “wage” as used in Section 6 means the statutory minimum wage

-legislature intended to limit the additional obligation imposed on principals in the service contracts to the payment of the increment in the statutory minimum wage

-Commissioner of Internal Revenue v. American Express

-the court may not construe a statute that is free from doubt

-construction of a statute by an administrative agency charged with the task of interpreting or applying the same is entitled to great weight and respect

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-court is not bound to apply said rule when there is no ambiguity in the law interpreted or when the language of the words used is clear and plain, as in the case at bar

-it is not within the province of this Court to inquire into the wisdom of the law for indeed, we are bound by the words of the statute; law is applied as it is

-law (RA 6727) secures the welfare of the workers by imposing a solidary liability on principals and the service contractors

-interpretation of Section 6 of RA 6727, the parties may enter into stipulations increasing the liability of the principal

-complaint for collection of remuneration and benefits other than the increased minimum wage rate, should therefore be dismissed for lack of cause of action

2.18 Rulings of Supreme Court part of legal system

-judicial decisions applying or interpreting the laws or the Constitution shall form part of the legal system of the Philippines

-decisions referred to are those of the Supreme Court

-rulings of the court of last resort applying or interpreting a statue become part of the statute itself

-legis interpretato legis vim obtinet: authoritative interpretation of the Supreme Court of a statute acquires the force of law becoming a part thereof

-rulings of the Supreme Court are laws in their own right because they interpret what the laws say or mean

-stare decisis et non quieta novere: when the Supreme Court has once laid down a principle of law as applicable to a certain state of facts, it will adhere to that principle and apply it to all future cases where the facts are substantially the same

-interpretation by the Supreme Court placed upon the law has the force of law and establishes the contemporaneous legislative intent of law, which constitutes part of the law as of the date the statute is enacted

-interpretation continues until overruled

-rulings of the highest tribunal are binding upon inferior courts

-they become the criteria that must control the actuations not only of those called upon to abide thereby but also of those duty-bound to enforce obedience thereto

2.19 Judicial rulings have no retroactive effect

-rulings cannot be given retroactive effect to do so will impair vested rights nor may a judicial ruling, overruling a previous one, be applied retroactively so as to nullify a right which arose under the previous ruling before its abandonment

-Article 4 of the Civil Code: laws shall have no retroactive effect unless the contrary is provided

-lex prospicit, non respicit: the law looks forward not backward

-Retroactive application divests rights that have already become vested or impairs the obligations of contract and hence, is unconstitutional

-People v. Macarandang

-Co v. Court of Appeals

-Roa v. Collector of Customs

-Benzonan v. Court of Appeals

-Cemco Holdings Inc. v. National Life Insurance Co.

2.20 Only Supreme Court en banc can modify or abandon principle of law, not any division of the Court

-Article VIII, Sec. 4 (3) of the Constitution: cases or matters heard by a division shall be decided or resolved with the concurrence of a majority of the Members who actually took part in the deliberations on the issues in the case and voted thereon, and in no case without the concurrence of at least three of such Members. When the required number is not obtained, the case shall be decided en banc: Provided, that no doctrine or principle of law laid down by the court in a decision rendered en banc or in division may be modified or reversed except by the court sitting en banc

-Buencamino v Court of Appeals:

-first division: SC ruled that decisions of the Ombudsman on disciplinary or administrative cases are final and executory, whether the penalty is more than one month suspension or dismissal for service

-decision modified or abandoned the doctrine in Lapid v Court of Appeals, Lopez v Court of Appeals, and Ombudsman v Laja: (ruling) only the Ombudsman rulings in administrative cases imposing censure, suspension of not more than one month, or fine of not more than one month salary are final and executor, and not those of higher penalties in accordance with Sec. 27 of RA 6770, or the Ombudsman Law

-only court en banc can modify or reverse any doctrine laid down by the Court either en banc or in division

-if what the court has stated in a decision is not a principle of law or doctrine, but is merely an obiter dictum , a division of the

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Court may validly reject or disregard such obiter dictum

-The provision of Section 27 of Republic Act No. 6770 and the Rules of Procedure of the Office of the Ombudsman with respect to the finality and execution of the decisions are not affected by the ruling in Fabian v. Desierto, and therefore still stand

-decision is pro hac vice or for particular occasion only

2.21 Court may issue guidelines in constuing statute

-Supreme Court formulate guiding and controlling constitutional principles, precepts, doctrines or rules

-guidelines are not judicial legislation

-Ang Bagong Bayani-OFW Labor Party v. COMELEC: Court issued guidelines in the determination by COMELEC as to which parties comply with the requirements of party-list election system

-Republic v. CA: guidelines for psychological incapacity as ground for annulment of marriage

-guidelines not to enlarge or restrict it but to clearly delineate what the law requires; not judicial legislation but an act to define what the law is

-People v Ferrer: guidelines on the anti-subversion act; CPP

-interpretation should be based not only on law but also on facts obtaining in the specific case resolved by the courts and not on future facts or circumstances

C. LIMITATIONS ON POWER TO CONSTRUE

2.22 Courts may not enlarge nor restrict statutes

-court should resist the temptation to roam at will and rely on its predilections as to what policy should prevail

-interpolation eschewed; evisceration avoided

-search must be for, and the end result should be, reasonable interpretation

-courts may not enlarge the scope of a statute and include therein situations not provided nor intended by the lawmakers

-courts are not authorized to insert into the law what they think should be in it or to supply what they think the legislature would have supplied if its attention had been called to omission

-should not, by construction, revise even the most arbitrary and unfair action of the

legislature nor rewrite the law to conform with what they think should be the law;

-cannot interpret into the law a requirement which the law does not prescribe

-a statute contains no limitations in its operation or scope, courts should not engraft any

-where a provision of law expressly limits its application to certain transactions, it cannot be extended to other transactions by interpretation

-courts should not construe statutes which are ‘perfectly vague’

-vague: when it lacks comprehensible standards that men of common intelligence must necessarily guess at its meaning and differ as to its application

-Canet v. Decena

Issue:

-whether or not respondent, in her capacity as Municipal Mayor, can be compelled to issue the necessary business permit to the petitioner absent a municipal ordinance which would empower her to do so

Held:

-no ordinance allowing the operation of a cockpit, Resolution No. 049, S. 1998, authorizing petitioner to establish, operate and maintain a cockpit in Bula, Camarines Sur cannot be implemented

-violation of the provisions of Section 447 of the Local Government Code of 1991; an undue encroachment on respondent’s administrative prerogatives

-express mention of one person, thing, act or consequence excludes all others, as expressed in the oft-repeated maxim expression unius est exclusion alterius

-even on the assumption that there is in fact a legislative gap caused by such an omission, neither could the Court presume otherwise and supply the details thereof, because legislative lacuna cannot be filled by judicial fiat

-an omission at the time of enactment cannot be judicially supplied however after later wisdom may recommend the inclusion

2.23. Courts not to be influenced by question of wisdom

-since the legislature, by the very nature of its function, is primarily the judge of the necessity, adequacy, wisdom, reasonableness and expediency of any law, courts may not take any of these matters into account in construing or interpreting the law

-courts do not pass upon questions of wisdom, justice, or expediency of legislation for it is not

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within their province to supervise legislation and keep it within the bounds of propriety and common sense

-courts do not sit to resolve the merit of conflicting theories for debatable questions are for the legislature to decide

-any shortcoming of a statute is for a legislature alone to correct by appropriate enactment

- questions regarding the wisdom, morality, or practicability, of statutes are not addressed to the judiciary but may be resolved only by the legislative and executive departments, to which the functions belongs in our scheme of government.

Documents

Statcon Reviewer Chp 1&2